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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 fur Industrial Recovery 



CODES OF FAIR COMPETITON 

Nos. 464-476 
AS APPROVED 

JUNE 12, JULY 5, 1934 

WITH SUPPLEMENTAL CODES, AMENDMENTS 

EXECUTIVE AND ADMINISTRATIVE 

ORDERS ISSUED BETWEEN 

THESE DATES 



VOLUME XII 




WE DO OUR PART 



; ' ''^ ■ UNITED' STA'JES" ' ''' ' 

GOVERNMENT PRINTI.^JG OFFICE 

WASHINGTON: 1934 



MAY 26 1936 






CtoqH to credit aocL 
with Supt. of Documents 



CONTENTS 



Code 

No 



464 
465 
466 
467 

468 
469 
470 
471 
472 
473 
474 
475 
476 



Industry 



CODES OF FAIR COMPETITION 

Cocoa and Chocolate Manufacturing 

Broom Manufacturing 

Retail Tobacco Trade 

Cigar Manufacturing 

Malt Products 

Sulphonated Oil Manufacturing 

Aluminum 

Trailer Manufacturing 

Warm Air Register 

Woven Wood Fabric Shade 

Needlework Industry of Puerto Rico 

Yeast 

Hatters' Fur Cutting 



Date Ap- 
proved, 1934 



June 15 
June 18 
June 19 
June 19 
June 22 
June 26 
June 26 
June 26 
June 28 
June 28 
June 28 
July 2 
July 3 



Date 



AMENDMENTS 

Laundry Trade, No. 2 

Mayonnaise, No. 1 

Men's Neckwear, No. 1 

Motion Picture, No. 1 

Business Furniture, Storage Equipment, and Filing Supply, 

No. 1 :_ 

Men's Neckwear, No. 2 

Baking, No. 1 

Lumber and Timber Products, No. 13 

Machine Applied Staple and Stapling Machine, No. 1 

Men's Neckwear, No. 3 

Gray Iron Foundry, No. 1 

Marking Devices, No. 1 

Lumber and Timber Products, No. 14 

Washing and Ironing Machine Manufacturing, No. 3 

Construction Machinery Distributing Trade, No. 1 

Graphic Arts, No. 5 

Preformed Plastic Products, No. 1 

Medium and Low-Prioed Jewelry Manufacturing, No. 1 

Precious Jewelry Producing, No. 1 

Waterpower Equipment, No. 1 (A Division of Machinery and 

Allied Products) 

Fabricated Metal Products Manufacturing and Metal Finishing 

and Metal Coating, No. 2 

Gear Manufacturing, No. 1 

Metal Treating, No. 1 

Paint, Varnish, and Lacquer Manufacturing, No. 2 

Warm- Air Furnace Manufacturing, No. 2 

Bedding Manufacturing, No. 1 

Lace Manufacturing, No. 2 

(I) 



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

6-15-34 
6-15-34 
6-16-34 
6-19-34 
6-19-34 
6-20-34 
6-21-34 
6-21-34 
6-22-34 
6-22-34 
6-23-34 
6-23-34 
6-23-34 
6-26-34 
6-26-34 

6-26-34 

6-27-34 
6-27-34 
6-27-34 
6-27-34 
6-27-34 
6-29-34 
6-29-34 



CONTENTS— Continued 



Date 



AMENDMENTS— Continued 

Light Sewing Industry, Except Garments, No. 3 

Luggage and Fancy Leather Goods, No. 2 

Machinery and Allied Products, No. 4 

Fur Dressing and Fur Dyeing, No. 1 

River and Harbor Improvement, No. 1 

Coffee, No. 1 

Graphic Arts, No. 6 

Ladies' Handbag, No. 1 

Slate, No. 1 

Textile Print Roller Engraving, No. 1 

Card Clothing, No. 1 

Velvet, No. 1 

SUPPLEMENTS 

Machinery and Allied Products, No. 20 (For Hoist Builders).. 

Machinery and Allied Products, No. 19 (For Hoisting Engine 
Manufacturing) 

Machinery and Allied Products, No. 21 (For Kiln, Cooler, and 
Dryer Manufacturing) 

Machinery and Allied Products, No. 22 (For Conveyor and 
Material Preparation Equipment Manufacturing) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 36 (For Lift Truck and Portable 
Elevator Manufacturing) 

Automotive Parts and Equipment Manufacturing, No. 1 (For 
Automobile Hot Water Heater Manufacturing) 

Construction, No. 14 (For Plastering and Lathing Contracting) 

Electrical Manufacturing, No. 2 (For Portable Electric Lamp 
and Shade) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 37 (For Artistic Lighting Equipment 
Manufacturing) 

Soap and Glycerine Manufacturing, No. 1 (For Pacific Coast 
Section of the Soap and Glycerine Manufacturing) 

Automotive Parts and Equipment Manufacturing, No. 2 (For 
Replacement Axle Shaft Manufacturing) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 38 (For Complete Wire and Iron 
Fence) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 39 (For Prison Equipment Manufac- 
turing) 

Machinery and Allied Products, No. 23 (For Chemical Engi- 
neering Equipment) 

Machinery and Allied Products, No. 24 (For Roller and Silent 
Chain) 

Wholesaling or Distributing Trade, No. 12 (For School Sup- 
plies and Equipment Trade) 

EXECUTIVE ORDERS 

Baking Industry, Staying effective date and increasing time for 
the Code Authority to file reports 

Administration, Delegating authority to the Administrator to 
enter into agreements for Territories 

Codes of Fair Competition, Application of Labor Provisions 
affecting apprentice training 

Service Trades or Industries, Local codes for uncodified 

(II) 



6-29-34 
6-29-34 
6-29-34 
6-30-34 
7- 2-34 
7- 3-34 
7- 3-34 
7- 3-34 
7- 3-34 
7- 3-34 
7- 5-34 
7- 5-34 



6-12-34 
6-12-34 
6-12-34 
6-19-34 

6-23-34 

6-25-34 
6-27-34 

6-27-34 

6-28-34 
6-29-34 
7- 3-34 

7- 3-34 

7- 5-34 
7- 5-34 
7- 5-34 
7- 5-34 



6-16-34 

6-27-34 

6-27-34 
6-28-34 



CONTENTS— Continued 



Date 



EXECUTIVE ORDERS— Continued 

Government contracts and contracts involving the use of gov- 
ernment funds, Providing price tolerance and compliance 

procedure 6-29-34 

National Labor Relations Board, Creation of 6-29-34 

Secretary of Agriculture and Administrator for Industrial Re- 
covery, Delegating power for joint code approval, etc 6-29-34 

Industrial Emergency Committee, Creation of 6-30-34 

National Recovery Review Board, Abolition of 6-30-34 

Secretary of the Interior, Delegation of Authority under section 

9 of the National Industrial Recovery Act 6-30-34 

ADMINISTRATIVE ORDERS 

Codes of Fair Competition, Exemption for quotations made 

to governmental agencies from 6-12-34 

Government contracts and contracts involving the use of gov- 
ernment funds. Lease of quarters in Terre Haute, Indiana — 6-12-34 

Construction, Agricultural pursuits, Exemption of persons 

engaged in 6-13-34 

Government contracts and contracts involving the use of gov- 
ernment funds. Leases or agreements with Yale University.- 6^13-34 

Millinery, Extension of effective date 6-13-34 

Retail Trade, Retail Jewelry Trade and Retail Food and Gro- 
cery Trade, Stay of Code provisions relevant to scrip 6-13-34 

Service Trades or Industries, Laundry Trade, Partial suspen- 
sion of the code for the 6-13-34 

Retail Rubber Tire and Battery Trade, Guarantee or Warranty 

provisions, Stay of .. 6-14-34 

American Glassware, Minimum Wage Schedules, Extension of 

time to file recommendations for 6-15-34 

Cement, Bids for Portland Cement for Fort Peck Tunnels in 

the State of Montana, Exception for &-15-34 

Men's Neckwear, Selling and delivery Trade Practices, Stay of_. 6-15-34 

Retail Trade, Sale of Soap, Temporary exemption from com- 
pliance with Section 6, Schedule A for 6-15-34 

Safety and Health Standards, Force of provisions subsequent 

to approval by Administrator 6-15-34 

Sandstone, Hazardous occupations. Extending time to file a 

list of - 6-15-34 

Investment Bankers, Waiver of rules, Delegating authority of 

Administrator to Division Administrator for 6-18-34 

Trucking, Registration and election. Extending time for 6-18-34 

Cotton Garment, Home-work problem. Extending time to 

)• report on the 6-19-34 

Tag, Home-work provision of Code, Further stay of &-19-34 

Paper Distributing Trade, Wages of labor. Extension of time 

limit for Section 4 of Article VIII for 6-20-34 

Paper Distributing Trade, Wages of labor. Stay of Administra- 
tive Order Number 176-6 relevant to 6-20-34 

Retail Food and Grocery Trade, Meat sales. Modification of 

exemption for 6-20-34 

Shipbuilding and Shiprepairing, Hours Further stay for- 6-20-34 

Undergarment and Negligee, Competitive conditions, Extend- 
ing time for the Committee to file reports on 6-20-34 

Candy Manufacturing, Stay of provisions relevant to sale and 

distribution of certain types of merchandise 6-21-34 

Graphic Arts, Wages, Extending stay of code provisions cover- 
ing 6-2 1-34 



(ni) 



CONTENTS— Continued 



ADMINISTRATIVE ORDERS— Continued 

Household Goods Storage and Moving Trade, Registration of 
Members, Extending time for 

Retail Solid Fuel, Coal Dock, Wholesale Coal, Bituminous Coal, 
Code Authorities, Appointment of Administration Members 
on Coordination Boards of the Several 

Wholesale Confectioners', Distribution of Merchandise, Ex- 
tending Stay of Article VIII, Rule 21 covering 

Cotton Textile, Knitters of Underwear, Approving exemption 
from Order curtailing the use of productive machinery 

Gray Iron Foundry, Expenses of Code Administration, Ex- 
emption from Order providing method of meeting 

Cigar Manufacturing, Hours, Wages and Merchandising Plan, 
Extending staj^s provided in order of code approval relevant. 

Retail Tobacco Trade, Hours, Wages and Merchandising Plan, 
Extending stays provided in order of code approval relevant 
to 



Date 



Government contracts and contracts involving the use of 
government funds. Projects of the Reconstruction Finance 
Corporation 

Advertising Specialty Manufacturing, Wage and Hour Pro- 
visions, Requiring posting of — for Graphic Arts Code by the. 

Bituminous Coal, Coal Dock, Wholesale Coal, Retail Solid 
Fuel, Staying application of Order relevant to bids rendered 
to governmental agencies , 

Lead, Lead Pigments Division, Exemption from the Trade and 
Marketing provisions for the 

Retail Lumber, Lumber Products, Building Materials and 
Building Specialties Trade, Overhead Costs, Modifying 
approval of 

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

Horseshoe and Allied Products Manufacturing, Hours and 
Wages, Allowing exceptions for 

Retail Rubber Tire and Battery Trade, Bids for Governmental 
Agencies, Stay of Order pertaining to 

Service Trades or Industries, Code Committees and Code 
Eagles 

Service Trades or Industries, Hotel Industry, Partial Suspension 
of the Code for the 

Wool Textile, Silk Textile, Labor Controversies, Administra- 
tion of 

Government contracts and contracts involving the use of gov- 
ernment funds, Detroit Edison Company of Detroit, Michi- 
gan, with the U.S.S. Dubuque, Naval Reserve Armory and 
U.S. Naval Reserve Aviation Base, Grosse lie, Michigan 

Government contracts and contracts involving the use of gov- 
ernment funds, Navy Department and the North Shore Gas 
Company of Chicago, Illinois 

GovernnieTit contracts and contracts involving the use of gov- 
ernment funds, San Jose Water Works of San Jose, California, 
and the Naval Reserve Armory 

Government contracts and contracts involving the use of gov- 
ernment funds, Veterans' Administration Facility with the 
Florida Power and Light Company, at Lake Citj', Florida 

Trucking, Household Goods Storage and Moving Trade, Regis- 
tration, Extending time for 

Codes of Fair Competition, Territorial exemptions and agree- 
ments and issuance of N.R. A. Insignia 



6-21-34 

6-21-34 
6-21-34 
6-22-34 
6-22-34 
6-23-34 

6-23-34 



6- 


-25 


-34 


6- 


-26 


-34 


6- 


-27 


-34 


6- 


-27- 


-34 


6- 


-27- 


-34 


6- 


-27- 


-34 


6- 


-28- 


-34 


6- 


-28- 


-34 


6- 


-28- 


-34 


6- 


-28- 


-34 


6- 


-28- 


-34 


6- 


-29- 


-34 


6- 


-29- 


-34 


6- 


-29- 


-34 


6- 


-29- 


-34 


6- 


-30- 


-34 


7- 


- 2- 


-34 



(IV) 



CONTENTS— Continued 



Date 



Page 



ADMINISTRATIVE ORDERS— Continued 

Excelsior and Excelsior Products, Production control, Extension 

of the provisions for 

National Sheltered Workshop Committee, Insignia, Authorizing 

the — to issue the N.R.A 

Fur Manufacturing, Market Areas, Extending date of report of 

Special Commission on 

Motion Picture, Effect, Extending time to put the code into 

Wholesale Monumental Granite, Price lists. Extending time to 

file 



Wool Textile, Export Sales, Exemption from Practice and 

Merchandising rules for the Piece Goods Selling Division for. 

Index 



7- 2-34 

7- 2-34 

7- 3-34 
7- 3-34 

7- 5-34 

7- 5-34 



689 

690 

693 
694 

695 

696 
697 



(V) 



CODES OF FAIR COMPETITION 



Approved Code No. 464 
CODE OF FAIR COMPETITION 

FOR THE 

COCOA AND CHOCOLATE MANUFACTURING 

INDUSTRY 

As Approved on June 15, 1934 



ORDER 



Approving Code of Fair Competition for the Cocoa and Chocolate 
Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Cocoa and Chocolate Manufacturing Indus- 
try, and hearings having been duly held thereon and the annexed 
report on said Code, coiYtaining finclings with respect thereto, having 
been made and directed to the President : 

NOW, THEREFORE, on behalf on 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 will promote the policy and pur- 
poses of said Title of said Act; be and it is hereby approved, pro- 
vided, however, that the provisions of Article VIII, Rule 12, (d), 
insofar as they prohibit the use of premiums, be and they are hereby 
stayed pending my further order. 

Hugh S. Johnson. 
Adnhinhtrator for Industrial Recovery. 

Approval recommended : 
Armin W. Riley, 

Divis ion A dministra t or. 

Washington, D.C, 

June 16, 1934. 

68294° -657-115 34 1 (1) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: A Public Hearing on the Code of Fair Competition for the 
Cocoa and Chocolate Manufacturing Industry, submitted by the 
Association of Cocoa and Chocolate Manufacturers of the United 
States, was conducted in Washington on the 12th of March, 1934, in 
accordance with the provisions of the National Industrial Recovery 
Act. The Association claims to represent more than ninety percent 
(90%) of the industry. 

The original proposed Code was filed by the Association the 9th 
of August, 1933, with 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, 
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 comprises 59 units of which 28 are chiefly 
engaged in the production of cocoa and chocolate. Of these 28 
units the Association claims 27 as members and that the value of 
the products manufactured by the members of the Association are in 
excess of $72,000,000 annually. It is further claimed that the annual 
volume of business of the entire industry is valued at $87,000,000. 
The aggregate invested capital of the industry is stated to be 
approximately $60,000,000. 

In 1929 the industry produced cocoa and chocolate to the value 
of $119,359,295; employed G,249 employees working on the average 
of 50 hours per week; and had an annual payroll of $7,778,001. 

Before the P.R.A. the industry employed approximately 5,500 
employees of which number approximately 23 percent w^ere female 
factory workers. 

The products of the industry are classified as unsweetened choco- 
late, sweet and milk chocolate, both plain and with added fruits 
and nuts, chocolate coatings for use by candy and confectionery 
manufacturers, and baking and ice cream industries, powdered cocoa 
sold in cans of various sizes and barrels and drums, and cocoa 
butter. 

(2) 



It is estimated that 50 percent of the annual vohimc of the industry 
business is tliat of chocohite proihicts for further fabrication by other 
inchistries,— chiefiy the candy manufacturing inchistry. 

An additional 80 percent oF the annual volume ol' tlie industry busi- 
ness is candy of the sweet chocolate and/or milk chocolate variety. 

HOURS AND WAGES 

Under the Code, emplo^^ees are limited to 40 hours per week and 
8 honrs per day, with exceptions provided for manaijerial and exec- 
utive employees receivinc: salaries in excess of $35.00 per week, out- 
side salesmen, outside delivery employees, watchmen, firemen and 
en<2:iueers. employees on emero;ency repair Avork, employees engaged 
in continuous ])rocesses and milk handlers. The Code contains safe- 
guarding clauses providing for overtime payment to the majority of 
em]doyees 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 rat€ of time and one-third. 

With the exception of watchmen, firemen and engineers and milk 
handlers, employees are limited to a six-day working week. 

Watchmen are limited to 56 hours per week with a minimum 
rate of pay of $17.00 per week. 

Office employees are limited to 40 hours per week witli a minimum 
rate of pay of $17.00 per week. 

The Code establishes a minimum wage rate per hour of $0.42i/'2 
for males and $0.37i/2 for females. 

Learners not to exceed 5 per cent may be paid 80 per cent of the 
established minimum wage rates. 

Office boys and messengers not to exceed 5 per cent may be paid 
$2.00 less per week than the established minimum wage rate for 
office employees. 

The Code provides for equitable adjustments. 

Home work in the industry is prohibited. 

It is estimated that the reduction in working hours of employees 
M'ill result in reemployment to a degree slightly in excess of 95 per 
cent of the industry employment in 1929. 

It is estimated that the minimum wage rates established in the 
Code will result in an increase of approximately 10 per ceiit in the 
total payroll of the industry. 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the 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 wil] pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among trade groups, by 
ir.ducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practices, by promoting the fullest pos- 



sible utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

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

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

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

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

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

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

Hugh S. Johnson, 

Administr'ator. 
June 15, 1934. 



CODE OF FAIR COMPETITION FOE THE COCOA AND 
CHOCOLATE MANUFACTURING INDUSTRY 

Article I — Purpose 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is established as a Code of Fair Competition 
for the Cocoa and Chocolate Manufacturing Industry and its pro- 
visions 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 Admin- 
istrator for Industrial Recovery. 

Section 2. The terms " cocoa and/or chocolate " as used herein 
means, and includes, all of those products comprised within the 
definitions of cacao products contained in the " Definitions and 
Standards for Food Products " (Service and Regulatory Announce- 
ments, Food and Drug No. 2, Fourth Revision, August 19^3), and 
solid chocolate bars with added fruits and/or nuts. 

Section 3. The term " Industry " as used herein means and in- 
cludes the manufacturing and/or distributing by manufacturers of 
cocoa and/or chocolate. 

Section 4. The term " member of the industry " or " member " as 
used herein means and includes any individual, partnership, associa- 
tion, corporation or other form of enterprise engaged in the Industry 
either as an employer or on his or its own behalf. 

Section 5. The term " employee " as used herein means and in- 
cludes any and all persons engaged in the Industry in any capacity 
receiving compensation for his service irrespective of the nature or 
method of such compensation, except a member of the Industry. 

Section 6. The term " employer " as used herein means and in- 
cludes any and all persons by whom any such employee is compen- 
sated or employed. 

Section 7. The term " watchmen " as used herein means and in- 
cludes employees ninety (90) per cent of whose working time is de- 
voted to watching and guarding the premises of the establishment. 

Section 8. The term " outside salesmen " as used herein means and 
includes employees eighty (80) per cent of whose working time is 
devoted to selling functions. 

Section 9. The term " outside deliverymen " as used herein means 
and includes employees who perform delivery functions primarily 
and who do not sell. 

(5) 



Section 10. The term " learners " as used herein means and in- 
cludes employees requiring special training and experience in a par- 
ticular duty or occupation not to exceed thirty (30) days, and who 
have not been previously engaged as learners within the Industry 
for the learning period defined herein. 

Section 11. The term " milk handlers " as used herein means and 
includes employees engaged in the handling of milk in perishable 
form. 

Section 12. The term " buyer " as used herein means and includes 
any person who purchases cocoa and/or chocolate for further manu- 
facture or resale. 

Section 13. The term " broker " as used herein means any person 
who performs the service of negotiating the sale of the products of 
the Industry for and on account of the seller as principal and whose 
compensation is paid by the seller. 

Section 14. The "Association " as used herein shall mean the As- 
sociation of Cocoa and Chocolate Manufacturers of the United 
States. 

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 herein otherwise provided. 

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

(b) Outside deliverymen may be permitted to work not in excess 
of forty-eight (48) hours in any week. 

(c) Firemen and engineers may be permitted to work eighty-four 
^84) hours in any two (2) week period, but not in excess of eight 
(8) hours in any twenty-four (24) hour period, and not in excess 
of forty-eight (48) hours in any week. 

(d) Milk handlers may be permitted to work forty-eight (48) 
hours in any week pending the President's approval of a Code of 
Fair Competition for the Milk Industry. 

Section 2. The provisions of this Article shall not apply to per- 
sons employed in managerial or executive capacities who earn not 
less than thirty-five dollars ($35.00) per week, nor to outside sales- 
men. 

Section 3. The maximum hours fixed in the 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 weekly 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. The maximum hours fixed in the foregoing first para- 
graph of Section 1 shall not apply to employees engaged in con- 
tinuous processes provided that all hours worked by such employees 
in excess of forty (40) hours in any one week and eight (8) hours 
in any one day 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 work and the number of liours worked by such 
employees in excess of the maximum. 

Spx'tion 5. The maximum hours provisions fixed in the foreo:oinjr 
first j^araii'raph of Section 1 sliall not apply as follows: durinfr i)eak 
periods not to exceed ei^ht (8) weeks in either half of any calendar 
year, and not to exceed a total of fourteen (14) weeks in any fidl 
calendar year when enijjloyees nuiy be permitted to work a maxinnun 
of forty-ei<>ht (48) hours per week or nine (9) hours in any twenty- 
four (24) hour period, but such additional hours worked by such 
employees in excess of the maximum hours of first paragraph of 
Section 1 shall be compensated for at the rate of time and one-third 
and reports shall be made monthly to the Code Authority stating the 
nature of the work and the number of hours worked by such em- 
ployees in excess of the maximum. 

Sfx'tion G. No person employed in clerical or office work shall 
be })ermitted 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 ma}' be permitted to work nine (9) hours 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 such two week period, pro- 
vided, that all additional hours worked by such employees in excess 
of the maximum shall be compensated for at the rate of time and 
one-third. 

Section 7. No employee, except as provided in Section 8, shall be 
permitted to work more than six (G) days in any seven-day (7) 
period, and except, that watchmen, firemen and engineers may be 
permitted to work on the seventh day when engaged in work of an 
emergency nature incident to their duties or occupation, but all time 
worked on the seventh day by such employees shall be compensated 
for at the rate of time and one-third, 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 each emergency. 

Section 8. Milk handlers may be permitted to work seven (7) 
days in any seven-day (7) period pending the President's approval 
of a Code of Fair Competition for the Milk Industry. 

Article IV — Wages 

Section 1. No employee shall be paid in any pay period less than 
at the following rates : 

(a) Male employees — 42i/^(i' per hour. 

(b) Female emploj^ees — 37i/2^ per hour. 

Section 2. Learners not to exceed five (5) per cent of the total 
number of employees may be paid at the rate of eighty (80) per cent 
of the mininuim wages herein provided. 

Section 3. No person employed as a watchman shall be paid less 
than at the rate of seventeen dollars ($17.00) per week for a fifty- 
six (56) hour week. 

Section 4. No person employed in clerical or office work shall be 
paid less than at the rate of seventeen dollars ($17.00) per week for 
a forty (40) hour week. 

68294° 657-115 34 2 



8 

Section 5. Office boys and messengers not to exceed five (5) per 
cent of the total number of office employees may be paid two dollars 
($2.00) per week less than the minimimi rates provided in Section 4 
of the Article. Each employer shall be entitled to at least one office 
boy and one messenger thus paid. 

Section C. 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 law, this Section shall not apply. 

Section 7. This Article establishes a minimum rate of pay which 
shall apply irrespective of whether an employee is actually com- 
pensated on a time rate, piece-work, or other basis. 

Section 8. Equitable adjustments in the pay schedules of all em- 
ployees above the minimum shall be made within sixty (GO) days 
after the approval of this Code by any member of the Industry who 
has not heretofore made such adjustments, and the first monthly 
report of wages required to be filed under this Code shall contain 
all w^age increases made since May 1, 1933. The Code Authority 
shall determine the fact of equitable adjustments by all members of 
the Industry and sliall submit its findings to the Administrator for 
his approval. In no event shall hourly rates be reduced as the result 
of the adoption of this Code. 

Section 9. A person whose earning capacity is limited because 
of age or physical or mental handicap or other infirmity ma}^ be 
employed on light work at a wage below the minimum established 
by this Code if the employer obtains from the 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 
Autliority 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. Employees shall have the right to organize and bar- 
gain collectively through representatives of their own choosing, and 
shall be free from the interference, restraint, or coercion of employ- 
ers of labor, or their agents, in the designation of such representa- 
tives or in self-organization or in other concerted activities for the 
purpose of collective bargaining or other mutual aid or protection. 

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

Section 3. Employers shall comply with the nuiximum hours of 
labor, minimum rates of pay and other conditions of emi)loyment, 
approved or prescribed by the President. 

Section 4. No person under the age of sixteen (Ki) years shall be 
employed in tlie Industry. 

Section 5. No j)erson under eighteen (18) years of age shall 
work, or be permitted to work, at operations or occupations haz- 



ardous in nature or detrimental to health. The Code Authority 
.shall submit to the Administi-atoi- within ninety (00) days after 
the effective date of this Code, a list of such occupations. 

In any state an employer shall be deemed to have complied with 
this provision as to ai>e if he shall ha^'e on hie a certificate or permit 
duly issued by the Authority in such state empowered to issue em- 
ployment or a<2;e certificates or permits showin<2: that the employee 
is of the required aije. 

Section G. Employers shall make payment of all wages in lawful 
currency or by negotiable checks or drafts, payable on demand. All 
contracts of employment shall prescribe payment of wages at least 
every two weeks and salaries at least as often as every month. 

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

Section 8. Employers shall not change the method of payment of 
employees' compensation or reclassify 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. 

Section 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 provisions shall be written in English and such other lan- 
guage as may be 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 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 be 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 em})loyer shall withhold wages exce])t 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 six months after the termination of the contract and 
which shall be kept o]:)en for the inspection of the Administrator. 

Section 14. No member of the Industry shall j)ermit homework. 



10 

Article VI — Administration 

Section 1. There shall forthwith be constituted a Code Author- 
ity consistino- ol' seven (7) persons to be proportioned as follows: 

(a) One (1) member of the Code Authority shall be a non-mem- 
ber of the Association and shall be elected by the members of the 
Industry who are not members of the Association. 

(b) Six (6) members of the Code Authority shall be selected by 
the members of the Industry who are also members of the Associa- 
tion. 

(c) At least two (2) members of the Code Authority shall be 
members of the Industry whose factory payroll covering employees 
engaged in the manufacture of cocoa and/or chocolate during the 
preceding calendar year was less than $100,000.00. 

Section 2. Election of members of the Code Authority provided 
for in Section 1 (a), (b) and (c), shall be by a plurality vote of the 
members of the Industry entitled to vote, in person, by mail or by 
proxy, weighted on the basis of one vote for each $50,000.00 (dis- 
regarding fractions) of factory payroll covering, employees engaged 
in the manufacture of cocoa and/or chocolate during the preceding 
calendar year. 

Section S. Each member of the Industry shall be entitled to at 
least one (1) vote. Voting may be cumulative. 

Section 4. In case of the failure to elect a member of the Code 
Authority, pursuant to Section 1 (a), such member shall be ap- 
pointed by the Administrator to serve until the election of such a 
member. 

Section 5. A meeting shall be called by the Secretary of the As- 
sociation and notice thereof shall be sent by mail to every known 
member of the Industry who is a non-member of the Association. 
The notice shall specifically state that the vote at the meeting may 
be in person, by mail or by proxy, and further specify the rules and 
regulations governing the election. 

Section 6. The names of the members of the Code Authority and 
the fact that the Code Authority has been constituted pursuant to 
this Article shall be certified to the Administrator by the Secre- 
tary of the Association. 

Section 7. The term of office for members of the Code Authority 
shall be one year beginning on April 1st of each year, except that 
the term of office of the members of the Code Authority first selected 
shall begin on the effective date of the Code and expire on the 
thirty-first day of March next succeeding said effective date. 

Section 8. Vacancies due to death or resignation shall be filled 
fr(»ni the same group in which such vacancy occurred, by vote of 
the remaining members of the Code Authority, subject to the 
approval of the Achninistrator. 

Section 9. In additicm to membership as above provided, there 
may be not more than three members to be appointed by the Admin- 
istrator to serve without vote. 

Section 10. The Association and each trade or industrial associa- 
tion directly or indirectly participating in the selection or activities 
of the Code Authoiity shall (1) impose no inequitable restrictions 
on membership, and (2) submit to the Administrator true copies of 



11 

its articles of association, by-laws, roi^lations, and any amendments 
when made thereto, together with such other information as to mem- 
bership, orf^anization, and activities as the Administrator may deem 
necessar)?^ to effectuate the purposes of the Act. 

Section 11. In order that the Code Authority shall at all times 
be truly re])resentative of the Industry and in otlicr respects comply 
with the lu'ovisions of the Act, the Administrator may i)rescribe 
such hearings as he may deem proper; and thereafter if he shall find 
tliat the Code Authority is not truly representative or does not in 
otlier res])ects comply with the provisions of the Act, may require 
an appropriate modification of the method of selection of the Code 
Authority. 

Section 12. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purposes. Nor 
shall any member of the Code Authority exercising reasonable dili- 
gence 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 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 opportu- 
nity for investigation of the merits of such action and further con- 
sideration by such Code Authority or agency pending final action 
which shall not be effective unless the Administrator approver 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 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 procedure 
and for the administration of this 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 mem- 
ber of the Industry or any other party except to such other Gov- 
ernmental agencies as may be designated 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 



12 

herein, proA-ided 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 Industry. 

(f) 1. It being found necessary, in order to support the admin- 
istration of this Code and to maintain the standards of fair compe- 
tition established by this Code and to eifectuate the policy of the Act, 
the Code Authority is authorized, subject to the approval of the 
Administrator : 

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

(b) To submit to the Administrator for his approval, 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 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 (f ) (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. 

(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 measure 
deemed advisable, including further fair trade practice provisions 
to govern members of the Industry in their relations with each other 
or with other industries; measures for industrial planning, and 
stabilization of emploj^ment; and including modification of this Code 
which shall become effective as part hereof upon approval by the 
Administrator after such notice and hearing as he may specify. 

(i) To appoint a Trade Practice Committee which shall meet 
with the Trade Practice Committees appointed under such other 
codes as may be related to the Industry for the purpose of formulat- 
ing fair trade practices to govern 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 procedure 
and rules to effect compliance with awards and determinations. 



13 

(k) To study the problem of improved accounting and cost find- 
ing for the Indvistry and submit to the Administrator its recom- 
mendations for elements of cost to be used by the Code Authority to 
administer and enforce the provisions of this Code. Upon the ap- 
proval of the Administrator, such elements of cost shall bo binding 
upon each member of the Industry. 

Section 15. Any member of the Industry may submit data tending 
to prove that such member is placed at a competitive disadvantage 
with, or is subject to dillerent economic conditions to those of other 
members of the Industry ; and the Code Authority may, after in- 
vestigation, recommend to the Administrator that the provisions of 
this Code may be amended or moditied, 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 mem- 
ber 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 this Code and with 
the Act, subject at all times to the approval of the Administrator 
and such interpretations 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, with 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 Author- 
ity may, if it chooses, invoke the procedure provided for in this 
section. 

Article VII — Open Price Plan 

Section 1. As to all merchandise which is prepared and packed 
by the manufacturer for sale at retail, no member of the Industry 
shall sell except upon the basis of open prices which are strictly 
adhered to, while effective. 

The term " open price " as used in this Section, means a price (1) 
which is filed in the office of the Code Authority in advance of its 
effective date and (2) which declares all the manufacturer's pre- 
vailing prices and terms of sale. Each member of the Industry 
shall within ten days after the effective date of this Code file and 
at all times thereafter maintain on file with the Code Authority 
prices as to all merchandise which is prepared and packed by him 
for sale at retail and shall adhere strictly to the prices and terms 
so filed and shall not make any change in such prices and terms 
unless and until notification of such new price lists and terms of 
sale have been filed with the Code Authority pursuant to the pro- 
visions of this Section. 

Section 2. All prices and/or terms and other conditions of sale 
so filed with the Code Authorit}^ as provided for in this Article, 
togetlier with the effective time thereof, shall upon receipt, be im- 
mediately and simultaneously distributed to all members of the 



14 

industry and to all of their customers who have applied therefor 
and have offered to defray the cost actually incurred by the Code 
Authority in the preparation and distribution thereof, and be avail- 
able for inspection by any of their customers at the office of the 
Code Authority. 

Section 3. No member of the industry shall make combination 
sales of cocoa and/or chocolate items and non-cocoa and/or non- 
chocolate items at prices which are lower than the members' filed 
prices for the cocoa and/or chocolate items plus the actual cost 
to the members of such non-cocoa and/or non-chocolate items. 

Article VIII — Tkade Pkactice Rules 

EuLE 1. Inaccurate Advertmng. — No member of the industry shall 
publish advertising (whether printed, radio, display, or of any other 
nature), wdiich is misleading or inaccurate in any material particu- 
lar, nor shall any member in any way misrepresent any goods (in- 
cluding but without limitation of 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, Inaccurate Reference to Connyetitors. — 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 product at a price below his own individual cost ; provided, 
however, that any member of the Industry may meet the lower prices 
of a competitor whose prices are not in violation of this Code, but 
such member shall report immediately to the Code Authority the 
name of such competitor and the price so met and the member who 
meets such a price and files such information shall not be deemed 
to have violated the Code if the price met is later found to be in 
violation of the Code. In the case of orders or contracts for future 
delivery the term " cost " may be based upon the cost at the time 
of acceptance of the order or contract. Provided, however, that 
until such time as the Administrator has approved the elements of 
cost as set forth in Article VI, Section 14 of this Code and such 
elements of cost are made known to the members of the Industry, 
any sales made at prices quoted, listed, or filed to otherwise conform 
with the provisions of this Code shall not be declared in violation of 
this Section. 

Rule 5. 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 tlieir customers. Failure to prosecute in due course 
shall be evidence that any such threat is unwarranted or unjustified. 

Rule G. Rehates. — (a) No member of the Industry shall secretly 
offer or make any payment or allowance of a rebate, refund, com- 
niission, credit, unearned discount, or excess allowance, whether in 
the form of money or otherwise. 



15 

(b) Nor secretly offer or extend to any buyer any special service 
or privilege not extended to all buyers of the same class for the 
purpose 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 defmed. 

Ruij: 7. C onsigmncnt Sales. — No member of the Industry shall 
ship goods on consignment except under any rules and regulations 
which the Code Authority may j:)rescribe subject to the approval of 
the Administrator. 

Kui.E 8. Bribing Employees. — 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, prin- 
cipal, or party. This provision shall not be construed to prohibit 
free and general distribution of articles commonly used for adver- 
tising except insofar as such articles are actually used for commer- 
cial bribery as hereinabove defined. 

Rule 9. Coercion. — No member of the Industry shall require that 
the purchase or lease of any goods be a prerequisite to the purchase 
or lease of any other goods. 

Rule 10. BlacMistivg. — 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 per cent 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 11. No member of the Industry shall — 

(a) Allow a buyer terms in excess of two (2) per cent cash 
discount. 

(b) Allow any cash discount unless payment is received or mailed 
within fifteen (15) days from the date of shipment. 

(c) Allow an}?^ cash discount to a buyer when payment is made by 
note or trade acceptance. 

(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 12. As to all merchandise which is prepared and packed for 
sale at retail, no membar of the Industry shall — 

(a) Make, or knowingly })ermit his agent or sales representative 
to make, any direct or indirect price concession to a buyer. The 
term " direct or indirect price concession " means any variation from 
the manufacturer's open price, whether by means of a rebate, allow- 
ance, payment, free deal, gift, or by any other means whatsoever. 

(b) Pay a buyer for a special advertising or other distribution of 
service by such buyer (1) except in pursuance of a written contract 
made in good faith and explicitly dehning the service to be rendered 
and the payment for it; and (2) unless such contract is separate and 



16 

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 a copy of each such contract is retained on 
file for a period of one year and submitted to the Code Authority on 
its request. 

(c) Maintain, directly or indirectly, any employee in the establish- 
ment of any buyer either (1) by paying for the services of an em- 
ployee of the buyer or (2) by placing his own employee therein or 
otherwise ; provided, however, that any manufacturer may supply : 
(1) bona fide demonstrators in retail stores where the retail buyer 
receives no compensation except actual expenses and (2) outside 
missionary salesmen. 

(d) Allow to any buyer a free deal. The term " free deal " as used 
in this Section means the gift of a product, prize, or premium condi- 
tioned upon the purchase of a product, or by any other means what- 
soever, excepting display devices or fixtures intended for advertising 
purposes.^ 

(e) Pay a commission, brokerage, or other compensation to a 
broker or purchasing agency with knowledge that he or it will 
directly or indirectly, split his commission or brokerage or other com- 
pensation with a buyer, or to a broker or purchasing agency in or 
over which a buj^er has any financial interest or control either directly 
or indirectly. 

(f) Pay a brokerage commission either secretly or openly to a 
buyer or an agent, employee, or representative of a buyer. 

Nothing in this Code shall be construed or interpreted so as to pre- 
vent any cooperative organization from being entitled to receive, 
and/or distribute to its members as patronage dividends or other- 
wise the proceeds or benefits directly or indirectly derived from any 
discount, commission, rebate or dividend. 

Rule 14. No member of the Industry shall allow a buyer any 
rebate on floor stocks in the event of a decline in a seller's price of 
bulk cocoa powder in barrels or bags, of chocolate coatings, cocoa 
butter, and liquors, excepting on goods shipped within ten days of 
such decline in price or in transit at the time of such decline. 

Rule. 15. The Code Authority shall prepare and submit to the 
Administrator standard forms of contracts for sales of bulk cocoa 
powder in barrels or bags, of chocolate coatings, and chocolate 
liquors. After approval by the Administrator only such standard 
forms of contract shall be used by any member of the Industry. 

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 regu- 
lation issued under said Act. 

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

* See paragraph 2 of order approving this Code. 



17 

Article X — MoNorOLiES, Etc. 

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

Article XT — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made more difficult of consummation if prices of goocls 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 — 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 XIII — Effective Date 

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



Approved Code No. 464, 
Registry No. 110-01. 



o 



Approved Code No. 4G5 
CODE OF FAIR COMPETITION 

FOR THE 

BROOM MANUFACTURING INDUSTRY 

As Approved on June 18, 1931 



ORDER 



Approving Code of Fair Competition for the Broom 
Manufacturing Industry 

An ap2)lication having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June IG. 1933, for approval of a Code of 
Fair Competition for the Broom Manufacturing Industry, and hear- 
ings having been duly held thereon and the annexed report on said 
Code, containing findings with respect thereto, having been made 
and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I. Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
Pre 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 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 : 
Armin W. Riley, 

Div'mon Administrator. 

Washington, D.C, 

June 18, 1934. 

CS250° 657-119 34 (ig) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sirs This is a report on the hearing of the Code of Fair Compe- 
tition for tlie Broom Manufacturing Industry held in Washington, 
D.C., March 9, 1934, pursuant to notice of hearing number 540, dated 
February 23, 1934. 

GENERAL 

This industry is composed of persons, firms and corporations 
engaged in the manufacture of household, toy, whisk and metal case 
brooms, quite generally throughout the United States. Broom 
manufacturing was originally a household industry, clustering about 
the smaller centers of population where broom corn was produced. 
At the present time the industry is concentrated for the most part 
in and about the larger centers, although considerable rural house- 
hold production still exists. It is estimated that there are approxi- 
mately 350 establishments employing 4086 workers. There are 
numerous small factories or shoi3s operated by individuals alone or 
employing one, two or three workers. The small shops are an im- 
portant factor in the industry and are largely responsible for the 
adoption of the wage minimum which the Code provides. Approxi- 
mately 20% of the total production occurs in prisons and other 
institutions. 

Article VII governing prison-made goods, and Article VIII deal- 
ing with sheltered workshops, are in harmony with the recent pro- 
visions regarding institutional products as provided for in the Com- 
pact of Fair Competition approved April 19, 1934, and otherwise. 

This Code prohibits the employment of any person under 16 years 
of age and under 18 years of age at occupations which are hazardous 
or detrimental to health. 

The wage minima set forth in the Code represent an increase of 
approximately 60% over the average wage paid prior to August, 
1933. It is indicated that while this Code will not materially increase 
emplo3aiient within the industry there will be a marked tendency to 
stabilize employment and furnish steady work for the employees 
thus engaged. 

Of 122 companies reporting houi's worked, 80 companies (65%) 
report that in years of normal business their work week exceeded 
40 hours, and of these 80 companies, 31 report normal working hours 
in excess of 50 per week. 

The average wages for this industry have always been very low. 
This is due to many factors, among which are: 

1. Influence of institutional and ])rison-made goods which 
amounted to about 20% of total volume in 1932, 10% of which was 
made in prisons, 6% in institutions for the blind, and 4% in other 
institutions. 

(20) 



21 

2. Lar^je iiuiiiber of a^od and physically handicapped persons to 
whom this industry (recjuiring, as it does, little skill) offers a means 
of livelihood. 

3. Growin^if use of brushes, carpet and electric vacuum sweepers, 
mops and other broom substitutes. 

4. Larp;e number of one and two-man shops (many on the farms 
or as a fill-in occupation.) This is an unemployment industry. A 
Juuidicaj)ped person can quickly leam to make brooms, peddle 
them from door to door, and make some wage for himself, even 
though small. This type of labor makes up about half of the 
total for the industry and will not come under this code. 

5. Another factor has been the decline in the use of parlor, mill 
and stable brooms due to lack of demand caused by economic change. 

The minimum wages proposed will average abaut 31^ per hour. 
Compared with the average minimum wages paid for the first six 
months of 1933 of 19^ per hour, this is an increase of 120 per hour 
(or 61%). Based on figures supplied by a reputable outside agency, 
there will be an increase in annual payrolls for 60% of the industry 
amounting to $930,000 and an increase in payrolls for the re- 
maining 40% amounting to $500,000, making a total increase of 
$1,430,000. This represents a general payroll increase of 621/2 %. 
Only 10% of the re])orting companies had minimum wages higher 
than thos? required for male labor, and only 5% had wages higher 
than those required for female labor. The report brings out the 
fact that of the companies reporting, two plants were paying male 
labor as low as 40 per hour, two plants w^ere paying female labor 
as low as 4^ per hour, one plant was paying male labor 6 cents per 
hour, 10 plants were paying female labor 12 cents per hour, and 
21 plants were paying male labor 120 per hour. 

For companies reporting (50% of industry) 

Actual waeres for first six months 1933 : 

2.388,000 man hours (rr^ 31^' $740, 280. 00 

Average wage was 1609o of minimum of 10^ 

New minimum wage will average 31<t 

100% of 31^^ 49. 60 

Increase in average wage 18. G^ 

Man hours per year 5, 000, 000 

Increase in annual pa.vroli $930, 000. 00 

(For companies not reporting (^0% of industry) 

Studies show a much lower wage in the small shops and based 
thereon it is estimated that for these companies the average wage 

before N.R.A. was__ 22# 

Average after this code 370 

Increase 150 

Man liours per year 3, 333, .333 

Increase in annual payroll $500, OCK). 00 

Total for industry 

Estimated annual payroll before N.R.A : 

5.000.000 hours (q! 310 $1, 550, 000. 00 

3,333,333 hours @ 220 7.33, 000. 00 

Total .$2, 283, 000. 00 

Total increase $1, 4.30, 000. 00 

Percent of increase 62iA% 



22 

The foregoing does not take into direct consideration wage in- 
creases which will result because of shortening of hours or by reason 
of the minimum for office workers. Neither does it consider the 
increase in wages or earnings to the one and two man shops not 
considered in arriving at what is taken as 100% for the industry. 

PROVISIONS AS TO HOURS 

This Code provides for a maximum work week of 40 hours and 
normal work day of 8 hours. There are exceptions with regard to 
executive, administrative, or supervisory employees who regularly 
receive not less than $30.00 per week, and outside salesmen. Watch- 
men may work 56 hours per week. Chauffeurs and delivery men 
may work 44 hours per week. No special peak period is provided 
for by this Code, but employees engaged in emergency maintenance 
or emergenc}^ repair work involving breakdowns or protection of 
life or property shall be paid at the rate of not less than one and 
one-third times the normal rate for all hours worked in excess of 
the maximum allowed. 

PROVISIONS AS TO WAGES 

Factory employees may be divided into two groups, namely, those 
who operate machines and those who do not operate machines. Ma- 
chine operators shall be paid at a rate not less than 421/20 per hour 
in the North or 400 per hour in the South. Male employees not 
operating machines shall be paid at a rate of not less than 321^^0 
per hour in the North or 30^ per hour in the South; except that a 
differential of 21^0 per hour is allowed in the case of female em- 
l^loyees engaged in light work, it being provided that women doing 
the same work as male employees shall receive the same rate of pay. 
Office employees shall be paid at a rate of not less than $16.00 per 
week in cities of 500,000 population or over or $15.00 elsewhere. 
One and one-half times the normal rate shall be paid for all time 
worked (except by watchmen, outside salesmen, and persons em- 
ployed in an executive, supervisory, or administrative capacity) on 
Sundays, New Year's Day, July Fourth, Labor Day, Thanksgiving 
Day, Christmas Day, and such other holidays as may be proclaimed 
by the President. 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the 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 obstructicms 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 supervi- 
sion, by eliminating unfair competitive practices, by promoting the 
fullest possible utilization of the present productive capacity of 
industries, by avoiding undue restriction of production (except as 



23 

may be temporarily required), by increasing the consumption of in- 
dustrial and a<2:ricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving stand- 
ards of labor, and by otherwise rehabilitating intlustry. 

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

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the; applicant asso- 
ciation is an industrial (or Trade) association truly re])resentative 
of the aforesaid Industry; and that said association imposes no 
inequitable restrictions on admission to membership therein. 

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

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

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

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

Hugh S. Johnson, 

A dministrator. 
June 18, 1934. 



CODE OF FAIR COMPETITION FOR THE BROOM 
MANUFACTURING INDUSTRY 

Article I — Purposes 

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

Article II — Definitions 

Section 1. As used in this Code: 

(a) The terms "Broom Manufacturing Industry" and "Indus- 
try " include the manufacture and sale by the manufacturer of 
household, industrial, whisk, toy and metal case brooms, and such 
related branches as may, from time to time, be included under the 
provisions of this Code. 

(b) The term "Member of the Industry" includes, without limi- 
tation, any individual, partnership, association, corporation or other 
form of enterprise engaged in the Industry either as an employer 
or on his or its own behalf. 

(c) The term " Employee " includes any and all persons engaged 
in the Industry, however compensated, except a member of the 
Industry. 

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

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

(f) The terms "Act" and "Administrator" mean respectively, 
Title I of the National Industrial Recovery Act, and the Admin- 
istrator for Industrial Recovery or his duly appointed agent. 

(g) The term " Person " means any individual, partnership, cor- 
poration, association, or any other business unit. 

(h) The term "Association " means the National Broom Manu- 
facturers' Association. 

(i) The term "Watchman" includes any employee wdiose prin- 
cipal function is watching and guarding the premises and property 
of an establishment of a member of the Industry. 

(j) The term "Outside Salesman" means any salesman who is 
engaged not less than sixty per cent (G0%) of his working hours 
outside the place of business of his employer. 

(k) The term " State " means and includes any and all States, 
Territories, and the District of Columbia. 

(1) The term "Sheltered Workshop " means any charitable insti- 
tution, or an activity of a charitable institution, conducted not for 

(24) 



25 

profit, but for the purpose of providing ivuiunerative employment 
for physically, mentally or socially handicapped workers. 

(m) 'J'lie term "Broom Corn" means the panicles, fibres or top 
fjfrowtli of the broom corn plant, an ai^nicultural |)roduct. 

(n) The term ''Productive Machinery" means winding; machines 
and sowino; machines iti i-eference to household, industrial and whisk 
brooms; and nailino;. staplinir, or banding machines and nailing 
benches in reference to metal case brooms. 

(o) The term '' Product " means any household, industrial, whisk, 
toy, or metal casp broom, or any part or ])iece thereof. 

(p) The term " (\)de Authority" means the supervisory agency 
designated in Article VI of this Code. 

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

Article III — Hours 

Sf.ction 1. No employee shall be permitted to w^ork in excess of 
forty (40) hours in any week or eight (8) hours in any twenty-four 
(24) hour period beginning at midnight or six (6) days in any seven 
(7) day period, except as Iierein otherwise provided. A normal 
work day shall not exceed eight (8) hours. 

(a) The provisions of this Article shall not apply to executive, 
sui^ervisory and administrative employees, provided that they shall 
be paid regularly at a rate of not less than thirty dollars ($30.00) 
per week, and outside salesmen. 

(b) Watchmen may be i)ermitted to work not more than fiftj^-six 
(5G) liours in any week. 

(c) Chauffeurs and deliverymen may be permitted to work not 
more than forty-four (44) hours in any week. 

Section 2. The maximum hours fixed in Section 1 herein shall not 
apply to any employees on emergency maintenance or emergency 
repair work involving breakdowns or protection of life or property, 
but in any such special case at least one and one-third times the 
normal rate shall be paid for hours worked in excess of such maxi- 
mum. Reports shall be made monthly to the Code Authority stating 
the number of hours worked by all employees in excess of such 
maximum hours. 

Section 3. No employer shall knowingly permit any person or 
employee to work for a total number of hours in excess of the num- 
ber of hours prescribed for each week and day, whether employed 
by one or more employers. 

Article IV — Wages 

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

.$16.00 pev week In cities of 500,000 population or over, or 

in the mediate trade areas thereof. 
$15.00 per week Elsewhere. 

except that ofHce boys and messengers may be paid at a rate of not 
less than two dollars ($2.00) per week below the minimum wage 
otherwise apj:)licable ; provided, however, that not more than ten per 

081150° 657-119 34 2 



26 

cent (10%) of the total number of office employees may be so em- 
ployed, but each establishment may have at least one. 

Section 2. Other employees shall be paid not less than the fol- 
lowing minima respectively : 

(a) Operators of productive machinery shall receive not less than 
forty-two and one-half cents (421/0^) per hour in the North or forty 
cents (40^) per hour in the South. 

(b) Other male employees shall receive not less than thirty-two 
and one-half cents (321/2?'.) per hour in the North or thirty cents 
(30^-) per hour in the South. 

(c) Other female employees, generally engaged in light work, 
shall receive not less than thirty cents (30^') per hour in the North 
or twenty-seven and one-half cents (27^2^) P^t hour in the South. 

(d) For the purposes of this Code the " South " shall include that 
section of the United States consisting of the folio vfing states: Vir- 
ginia, North Carolina, South Carolina, Tennessee, Georgia, Florida, 
Alabama, Mississippi, Louisiana and Texas ; and " North " means the 
rest of the United States. 

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. 

Section 4. No employee w^hose normal full time weekly hours, 
after the approval of this Code, shall be sixteen and two-thirds per 
cent (16%%), or less, below his average full time weekly hours for 
the four months ending May 1, 1933, shall have his full time weekly 
earnings reduced below the average weekly earnings of such em- 
ployee during said four months' period. In case the reduction in 
hours, as so measured, is more than sixteen and two-thirds per cent 
(16%%), employers shall make an equitable readjustment of hourly 
wage rates upwards, but in no case shall such hourly wage rates be 
less than such employees would have received under the preceding 
sentence had their weekly hours been reduced by only sixteen and 
two-thirds per cent (16%%). In no case shall hourly wage rates be 
reduced. 

Section 5. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees. 

Section 6. Every contract of employment shall provide that wages 
shall be paid in lawful money or by negotiable check no less fre- 
quently than semi-monthly. Within fifteen (15) days after the 
approval of this Code all back wages due employees for any period 
prior to the effective date shall be paid in lawful money or nego- 
tiable check. 

Section 7. A person whose earning capacity is limited because of 
age, physical or mental handicap, or other' infirmity, may be em- 
ployed on liglit work at a wage below the minimum established by 
this Code, if the employer obtains from the state authority, desig- 
nated by the United States Department of Labor, a certificate 
authorizing su(;h person's employment at such wages and for such 
hours as shall be stated in the certificate. Such autliority shall be 
f^uided by the instruction 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 



27 

by him showini*; the wages paid to, and the maxiimun bours of woi'k 
for such employee. 

Section 8. No emph)yer shall permit any person to work in the 
Industry without compensation at least ecjual to the minimum wages 
provided for in this Article, excejjt as provided for in Section 7, 
above. 

Section 9. Time and one-half the nonnal rate shall be i)aid for 
all time worked (except by watchmen, outside salesmen, and those 
persons employed in an executive, supervisory, or administrative 
capacit}', as set forth in Section 1 (a) of Article III) on Sundays 
and the following holidays : New Year's Day, July fourth, Labor 
Day, Thanksgiving Day, Christmas Day, and such other holidays 
as may be proclaimed by the President. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) j^ears 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 Vvnthin thirty (30) days after the 
effective date of this Code a list of such operations or occupations. 
In any jurisdiction, an employer shall be deemed to have complied 
with this provision as to age if he shall have on file a certificate or 
permit duly signed by the Authority in such jurisdiction empowered 
to issue employment or age certificates or permits showing that the 
employee is of the required age. 

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

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

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

Section 3. No provisions in this Code shall supersede any law 
which imposes more stringent requirements on employers as to ago 
of employees, wages, hours of work, or as to safety, health, sanitary 
or general working conditions, or insurance, or fire protection, than 
are imposed by this Code. 

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

Section 5. No employee now employed 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. 



28 

Section 6. Wfifres shall be exempt from fines; and from charges 
and deductions, except charges and deductions covering employees' 
voluntary contributions to pension, insurance or benefit funds; and 
no employer shall withhold wages except upon service of legal 
process or other papers lawfully requiring such withholding. De- 
ductions for purposes not heretofore stated may be made only when 
the agreement is in writing and is kept on file by the employer open 
to the inspection of the Administrator or his duly authorized agent. 

Section 7. Employers shall not change the method of payment 
of employees' compensation or reclassify employees or duties or 
occupations performed by employees or engage in any subterfuge 
so as to defeat the purposes of the Act or the provisions of this Code. 

Section 8. Each employer shall post and keep posted in conspicu- 
ous places accessible to all employees Articles III, IV and V of this 
Code. Every member of the Industry shall comply with all rules 
and regulations relative to the posting of provisions of Codes of 
Fair Competition which may, from time to time, be prescribed by 
the Administrator. 

Article VI — Administration — Organization, Powers and Duties 
OF THE Code Authority 

A. ORGANIZATION AND CONSTITUTION 

Section 1. A Code Authority is hereby established consisting of 
seven (7) members. All members of the Broom Industry who shall 
have qualified to participate in the selection of the members of the 
Code Authority in accordance with Section 11 of this Article shall 
have the right to vote for the members of the said Code Authority. 
Four (4) of the members of the Code Authority shall be elected by 
the National Broom Manufacturers' Association. The other three 
(3) members of said Code Authority shall be selected from the 
members of the Industry who are non-members of the Association. 
Within forty-five (45) days from the effective date of this Code, the 
Association members of the Code Authority shall formulate and 
submit for the approval of the Administrator an equitable method 
by which the three (3) non-Association members of said Code 
Authority shall be selected. 

Section 2. All members of the Code Authority shall hold office 
for one (1) year from the date of their election or until their respec- 
tive successors are elected, provided that the non-members of the 
Association so elected shall not take office until the terms of their 
predecessors shall have expired. Elections of the Code Authority 
shall be held annually on a date fixed by the Code Authority. 

Section 3. In addition to membership, as above provided, there 
may be one or more members without vote to be appointed by the 
Administrator to serve on the Code Authority for such time as he 
uuiy designate. Tlic representatives who may be appointed by the 
Administratoi', together with the Administrator, shall be given 
notice of and shall be permitted to sit at all meetings of the Code 
Authority. 

Section 4. Any vacancies occurring in the membership of the 
Code Authority shall be filled by election as provided herein for 
the election of the original members. 



29 

Section 5. In the selection of the members of the Code Authority 
a vote cast by mail or by proxy shall have the same force and effect 
as a vote cast in meetin<»;. 

Section 6. The Code Authority shall have as its Chairman one of 
its members duly elected by the members thereof. 

Section 7. If the Administrator shall determine that any action 
of a Code Authority or any aj^ency thereof may be unfair or unjust 
or contrary to the public interest, the Administrator may require 
that such action be suspended to afford an opportunity for investi- 
g^ation of the merits of such action and further consideration by^such 
Code Authority or agency pending:; final action whicli shall not be 
elFective 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 modihed form. 

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

Section 9. In order that the Code Authority shall at all times 
be truly representative of the Industry, and in other respects comply 
Avith the provisions of the Act, the Administrator may prescribe 
such hearings as he may deem proper; and thereafter, if he shall 
find that the Code Authority is not truly representative or does not 
in other respects comply with the provisions of the Act, may require 
an appropriate modification in the method of selection of the Code 
Authority. 

Section 10. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent or employee 
of the Code Authority. Nor shall any member of the Code Author- 
ity, exercising reasonable diligence in the conduct of his duties here- 
under, be liable to anyone for any action or omission to act under 
this Code, except for his own wilful misfeasance or non-feasance. 

B. FOWEKS AND DUTIES 

Section 11. The Code Authority shall have the following further 
powers and duties, subject to such rules and regulations as may ba 
issued by the Administrator : 

(a) To insure the execution of the ])rovisions of this Code and 
provide for the compliance of the Industry with the provisions of 
the Act, subject to such rules and regulations as the Administrator 
may establish. 

(b) To adopt rnle.s 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. In 
addition to information required to be submitted to the Code Au- 
thority, members of the Industry subject to this Code shall furnish 



30 

such statistical information as the Administrator may deem neces- 
sary for the purpose recited in Section 3 (a) of the Act to such 
Federal and State agencies as he may designate; provided that 
nothing in this Code shall relieve any member of the Industry of 
any existing obligation to furnish reports to any Government 
agency. No individual report shall be disclosed to any other mem- 
ber of the Industry or any other party except to such other Gov- 
ernmental agencies as may be directed by the Administrator. 

(d) It being found necessary, in order to support the administra- 
tion of this Code and to maintain the standards of fair competition 
established by this Code and to effectuate tlie 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, 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon wliich 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 that 
end, if necessary, to institute legal proceedings therefore in its own 
name. 

Only members of the Industry complying with the Code and con- 
tributing to the expenses of its administration as provided in Section 
1 hereof shall be entitled to participate in the selection of the mem- 
bers 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. 

(e) 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. 

(f) The Code Authority is empowered to establish from time to 
time geographical divisions of the Industry and to increase or de- 
crease the number of such divisions, all subject to the approval of 
the Administrator. When any geographical division of the Indus- 
try has been established, the Code Authority shall supervise the 
election by the assentors to the Code in such clivision, of a Regional 
Code Authority. All assentors to the Code maintaining an office or 
a plant in such division shall be entitled to vote for the members of 
the Regional Code Authority and to serve as a member thereof. 
Regional Code Authorities, so created, shall have the right to advise 
the Code Authority in the administration of this Code on questions 
having local application and shall assist the Code Authority as 
directed by them in the administration of this Code; provided, 
however, that the Code Authority in delegating any powers, duties 
or functions to a Rt^gional Code Authority shall not be relieved of 
any of its responsibilities under this Code. The Administrator 



31 

shall have the rio;ht to designate one or more Administration mem- 
bers to serve without vote on each such Regional Code Authority. 
Any action pursuant to this paragraph shall be subject to disap- 
proval by the Achninistrator. 

(g) Upon apj)licalion of a substantial number of the assentors to 
the Code in any Product Division of the Industry, the Code Author- 
ity may establish Product Divisions of the Industry. Such Product 
Divisions operating through duly elected committees may submit 
additional amendments for incorpoi-ation in this Code relating to 
trade practices of such Product Divisions. The Code Authority 
may also delegate to such Product Division Committees adminis- 
trative duties and functions relating to the trade practices of such 
divisions, subject to such rules and direction as the Code Authority 
may prescribe and subject to disapproal by the Administrator. 

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

Sectiox 12. Members of the Industry and the Code Authority 
shall use their best efforts to insure the full observance of the condi- 
tions of this Code. Any violations of the terms of this Code which 
shall come to the knowledge of any member of the Industry shall 
immediately be communicated to the Code Authority by a sw^orn 
statement containing said charges of violations of the terms of this 
Code, together wdth all available substantiating evidence. 

It shall be the duty of the Code Authority to investigate such 
charges and any charges which shall come to the knowledge of the 
Code Authority through any other reliable source. The Code 
Authority shall request a statement under oath from the member 
of the Industry whose transactions are under investigation. If, 
after investigation, the Code Authority shall find that such charges 
are substantiated, it shall either notify the member so violating the 
conditions of this Code, requesting that such violations be discon- 
tinued, or it shall notify the Administrator in writing requesting 
him to take necessarj'^ action, or both. 

Section 13. In order to protect American Agriculture, the mem- 
bers of this Industry, and the consumer, the Code Authority, with 
the cooperation of the Department of Commerce shall collect and 
publish from time to time data pertaining to the import of broom 
corn produced outside of the United States and/or substitutes there- 
for and the import of brooms produced wholly or in part outside of 
the United States. The Code Authority is authorized to petition 
the President under Section 3 (e) of the National Recovery Act for 
restrictions on such imports as msij be necessary and desirable to 
comply with the intent of such section. 

Article VII — Prison Made Goods 

Section 1. "VNHiere unj penal, reformatory, or correctional insti- 
tution or the State by which said institution is maintained either 
by subscribing to the Compact of Fair Competition for the Prison 
Industries of the United States of America, or by a binding agree- 
ment of any other nature, satisfies the Administrator that merchan- 



32 

dise produced in such institution or by the inmates thereof will not 
be sold except upon a fair competitive basis with similar merchandise 
not so produced, the i^rovisions of Section 2 hereof shall not apply- 
to any merchandise produced in such manner in an institution which 
is a party to such agreement. 

Section 2. Except as provided in the foregoing section no member 
of the Industry shall knowingly produce, buy, or contract to buy 
any merchandise produced in whole or in part in a penal, reforma- 
tory, or correctional institution. No member of the Industry shall 
knowingly sell or offer for sale such merchandise. Nothing in this 
section, however, shall affect contracts, which the member of the 
Industry does not have the option to cancel, made with respect to 
such merchandise before the approval of this Code by the President 
of the United States. 

Article VIII — Siielteked Workshops 

Section 1. No provisions of this Code shall be construed to apply 
to any sheltered workshop, provided such sheltered workshop shall 
have executed a pledge to the Administrator (1) that it will not 
employ minors under 16 years of age, except those whose employ- 
ment shall bo approved by the appropriate Regional Committee 
of the National Sheltered Workshop Committee, (2) that it will not 
engage in destructive price cutting or any other unfair method of 
competition, and (3) that it will not wilfully hamper or retard 
the i^urposes of the Act. 

Article IX — Marketing & Trade Practice Rules 

Section 1. Selling Below Cost. — No member of the Industry 
shall sell products of the Industry at lower than his own cost, as 
computed in accordance with the provisions of Sections 2 and 3 of 
this Article; provided, however, that any member of the Industry 
may sell below his own cost to meet sales prices of a competitor, who 
is liot violating the provisions of this Article, on products of equiva- 
lent design, character and quality. 

For the purpose of determining a violation of this clause, all 
terms of sale, including cash discounts shall be considered. Noth- 
ing contained in this section shall be constiiied so as to in any 
manner fix prices paid to producers of broom corn. 

Section 2. Accountmg. — Each member shall use an accounting 
system which shall conform to the principles of and is at least as 
detailed and complete as the standard and uniform method of 
accounting that shall be formulated or approved by the Code 
Authority, subject to the approval of the Administrator, Avith such 
variations therefrom as may be required by the individual condi- 
tions affecting any member, -provided such variations are approved 
by the Administrator after recommendation by the Code Authority. 

Section 3. Elements of Cost. — For determination of cost as used 
in Section 1, of this Article the Code Authority, with the approval 
of the Administrator, shall from time t« time set forth the elements 
which shall enter into cost. Sucli elements shall provide for the 
inclusion of material costs at purchase cost or replacement market 
cost whichever is lower. 



33 

Section 4. Investigation. — Upon complaint against any member 
of the Industry of a violation of Sections 1, 2 or 3 of this Article, 
the Code Authority may, upon authority fjrantcd by the Achninis- 
trator, desiij^nate a cei'tilied, re^stered, chartei'ed, or any other 
lawful practitioner of ])ublic accountancy, to examine, dni-in<? the 
usual horu's of business, the, bcK)ks and records of the member of the 
Industr}^ aj^ainst whom complaint has been made. Only such booka 
and records as pertain to the alleged violation may be examined by 
the accountant employed, and said accountant shall not reveal to 
the Code Authority any other information obtained than infor- 
mation which is jiertinent to the alleged violation. 

Section 5. SuhstituteH. — Any broom containing any particle, 
piece or part of any grass, straw, or fibre as a substitute for bi-ooni 
corn shall have attached thereto, in such manner as to be plainlji 
visible to the purchaser thereof, a separate label at least one inch 
removed from the regular label, plainly printed in not less than 
10 point bold face type in black letters on white paper, the legend : 

" This broom contains {here give the common trade riavie of the 
substitute), a substitute for broom corn." 

Failure so to mark is a violation of this Code. 

Section 6. Trade Practice Rules. — The following practices con- 
stitute unfair methods of competition and are prohibited : 

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

(b) Defam-atian: — Disseminating, publishing or circulating any 
false or misleading information relative to any products or jDrics 
for any product of any member of the Industry, or the credit stand- 
ing or ability of any member thereof. 

(c*) Indiicing Breach of Ex-lsting Contracts. — No member of the 
Industry shall wilfully induce or attempt to induce the breach of 
existing contracts between competitors and their customers by any 
false or deceptive means, or interfere with or obstruct the perform- 
ance of any such contractual duties or services by any such means, 
wdth the purpose and effect of hampering, injuring or embarrassing 
competitors in their business. 

No member of the Industry shall require that the purchase or 
lease of any goods be a prerequisite to the purchase or lease of any 
other goods. 

(d) Unfair Practices. — Aiding or abetting any person within this 
Industry in any unfair method of competition contained in this 
Article. 

(e) False Invoicing. — No member of the Industry shall know- 
ingly Avithhold from or insert in any quotation or invoice, any 
statement that makes it inaccurate in any material particular. 



34 

(f) Trade-Marks amd Brands. — The unauthorized use of any de- 
sign, trade-mark, brand, label, insignia, or slogan belonging to an- 
other Member of the Industry, or simulation thereof, with the pur- 
pose or intent to deceive or having the tendency or capacity to 
deceive or mislead the purchaser. 

(g) Unsold Merchandise. — Agreeing with buyers that brooms un- 
sold may be returned for credit or returned for exchange for other 
brooms. 

(h) Lahels. — All products, except whisk brooms and toy brooms 
shall be labeled with the name and address or key number of the 
manufacturer plainly visible, provided, however, that members of 
the Industry who at the time of the approval of this Code are selling 
products of the Industry bearing labels which do not conform to the 
above may continue to do so until their present supply of such labels 
is exhausted, but in no event shall such use be continued more than 
ninety (90) days after the date of approval of this Code, and no 
purchases of such labels shall hereafter be made by any member of 
the Industry. 

(i) Special Lahels. — Furnishing to customers without recognition 
therefor in the sales price of the product of any special labels featur- 
ing the name or names of any private brand, trade-mark or design 
of any person, partnership, firm or corporation, shall be considered 
a secret rebate and as such an unfair trade practice. 

(j) False Labeling. — To mark, label, or brand any broom in such 
a manner as to misrepresent the weight, size, quality or the material 
used therein. 

(k) Prizes and Premiufins. — No member of the Industry shall offer 
any prize or premium or gift in pursuance of a plan which involves 
fraud or deception or lottery, or which is an indirect price concession. 

Article X — Modification 

Section 1. (a) This Code and all the provisions thereof are ex- 
pressly 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 Title I of said Act. 

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

Article XI — Monopolies 

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

Article XII — Effective Date 

This Code shall become effective the second Monday after 
approval. 

Approved Codo No. 4G5. 
Ilegistry No. ICOD-OG. 

O 



Approved Code No. 466 
CODE OF FAIR COMPETITION 

FOR THE 

RETAIL TOBACCO TRADE 

As Approved on June 19, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 
Code of Fair Competition for the Retail 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 Jifne IG, 1933, for my approval of a Code 
of Fair Competition for the Retail Tobacco Trade, and hearings 
having been held thereon and the Administrator having rendered 
his report containing an anah^sis of the said Code of Fair Competi- 
tion 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 pro- 
visions of Title I of said Act, and that the requirements of clauses 
(1) and (2) of subsection (a) of section 3 of the said Act have been 
met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I 
of the National Industrial Recovery Act, approved June IG, 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, 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 Monday, June 25, 1934. 

(2) That the waiting periods of five and three days contained 
in Schedule I, Part A, Section 1, and in Schedule I, Part B, Sections 
1 and 2, respectively, be stayed and shall not become effective, not- 
withstanding said cigar merchandising plan become effective^ until 
the further order of the Administrator. 

CSS42°- 057-125 34 1 (35) 



36 

(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. 

(4) That the preamble and Sections 1, 2, 3, 4, and 6, 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 snuif, 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, imper- 
iling small enterprises or tending toward monopoly or the impair- 
ment 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 con- 
curred in by either party to the complaint, all papers shall be re- 
ferred 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 
retail distribution) in the determination of pricing policies. 

"(c) When an emergency by reason of unfair competitive practices 
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 

"(rt) If the Administrator, after investigation, shall at any time 
find both (1) that an emergency has arisen within the trade, ad- 
versely 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 retail distribu- 
tion) and to reconunend to the Administrator a basis for determining 
minimum prices of the said products or the said specified part thereof 
affected by the emergency, and thereupon the Administrator may 
proceed to fix a basis for tletermining such minimum prices. 



"(5) 'Wlien the Administrator shall have fixed a basis for deter- 
niinino; minimum prices for the said products or said specified part 
thereof for a stated period, Avhich prices shall be reasonably calcu- 
lated to correct the conditions of such emergency and to effectuate 
the purposes of the Act, he shall publish the said basis. Thereafter, 
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 destructive 
price cutting. From time to time, the Code Authority may recom- 
mend 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. 

FEANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnsox, 

Administrator. 

The White House, 

Juim 19, 1934. 



LETTEK OF TRANSMITTAL 

The President, 

The White House. 

Sir: A Public Hearing on a Code of Fair Competition for the 
Wholesale and Retail Tobacco Distributing 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 the 15th and 16th of December, 1933, in accordance with the pro- 
visions of the National Industrial Recovery Act, pursuant to Notice 
of Hearing signed by the Secretary of Agriculture under Executive 
Order of June 26, 1933. By Executive Order of January 8, 1934, 
jurisdiction over that Code was transferred to the Administrator for 
Industrial Recovery. 

The original Code has now been divided into separate codes : this 
Code and the Code for the Wholesale Tobacco Trade. The sepa- 
ration was made because it was thought that the divergent problems 
of these trades could be more conveniently handled in this way. 
In all other respects the post-hearing revisions have been minor, 
and the provisions of this Code, as submitted for your approval, are 
substantiated b}' the official record of the Public Hearing, informa- 
tion and facts in filed briefs, or as a result of Post-Hearing confer- 
ences held with the Code Committee. 

ECONOMIC EFFECT OF THE CODE 

The Association claims to represent more than 200,000 retail estab- 
lishments comprising cigar stores, drug stores, confectionery stores, 
news dealers, and others who deal in and are responsible for annual 
sales of tobacco products in excess of $1,300,000,000, with an aggre- 
gate invested capital of approximately $300,000,000. It is the fur- 
ther claim of the Association that the sale of tobacco products by 
members of the Association is approximately 80 percent of the total 
sales of all tobacco products. 

The retail sale of tobacco products takes place through many 
diverse outlets. It is therefore difficult to obtain accurate figures to 
show the full extent of this business. The Census of Distribution 
for 1929 which regards only those stores as tobacco outlets whose 
business is over fifty per cent in tobacco lines, shows that there were 
approximately 33,000 such establishments employing 34,238 em- 
ployees. The variance between these figures and those submitted 
by the Association, is presumably due to this difference in method 
of comj^utation. Due to the fact that they are the only official 
figures available, they have been used by the Division of Research 
and IMajiuing in their report. 

The Retail 'J'obacco Trade covers the retail distribution of cigars, 
cigarettes, sm(;king tobacco, chewing tobacco, snuff, and other tobacco 
products. 

(.S,S) 



39 

The Association and the Resoarch and PhuTinino: Division are in 
accord -svith the statement that 90 per cent of all retail tobacco 
establishments can be classified as independent one-store tobacconists 
who account for two-thirds of all sales of tobacco products. 

One of the outstanding features of the fair trade practice provi- 
sions is the cigar merchandising ])lan, which is also found in the 
Wholesale Tobacco Code and the Code for the Cigar Manufacturing 
Industry. It provides for the retail sale of cigars at prices not less 
than those declared by the manufacturer for each of his products, 
and further prescribes maximum discounts allowable by manufac- 
turers or wholesalers from those prices. 

The retail dealers originated this plan, and it 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, the Industrial Advisory Board, the 
Labor Advisory Board, and the Legal Division. 

It has long been a recognized custom of the industry for manufac- 
turers to declare intended retail prices, and the internal ravenua 
taxes on cigars are computed on such a basis. The plan is based on 
this custom, but free competition between manufacturers, as well as 
the industry's recognition of the imperative need for 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. 

At the same time the use of cigars as " loss leaders " by unrelated 
business has placed a severe burden on persons whose welfare de- 
pends on the tobacco business. It is hoped that the establishment 
of minimum retail prices wdll stabilize employment for this large 
class of persons who are, for the most part, small business men, de- 
pendent for their livelihood on this trade. 

For further protection, Part II of Article VI in the proposed 
Code provides that no retailer shall sell any tobacco products, which 
are not covered by the merchandising plan in Part I, below the low- 
est reasonable cost of the retail distribution of such tobacco products. 
Such lowest reasonable cost will be determined by the Code Author- 
ity with the approval of the Administrator. Meanvvdiile the Ad- 
ministrator may, in order temporarily to restrict destructive price 
cutting, fix a basis for the computation of the minimum retail price 
of these tobacco products other than cigars. 

HOURS AND WAGES 

By defining an establishment, as any store, shop, stand or other 
place of retail business at which more than one-half in dollar volume 
of sales made consist of tobacco products, or at which the principal 
line of business is the sale of tobacco products, the wage and hour 
provisions are limited to such places of business. 

"Work hours and store hours are elective and, wuth the exception 
of wages, the Labor Provisions conform substantially to the Labor 



40 

Provisions of the approved Codes of Fair Competition for the 
Retail Trade and the Retail Drug Trade, respectively. 

Minimum wage rates, established in the Code, are approximately 
15 percent higher than the rates of wages now prevailing in other 
retail codes. 

The working hours are not entirely satisfactory from a purely 
social viewpoint ; but they represent reduction from the hours which 
prevailed in the retail tobacco trade. Increased employment will 
depend upon the store hours elected by the majority of the trade. 

It is estimated that the minimum wage rates established in the 
Code will result in an increase of approximately 10 per cent, in 
the total payrolls of the trade. 

FINDINGS 

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 ; 

I find that: 

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

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

(c) The Code is not designed to and will not x)ermit 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 recommended for approval. 
Respectfully, 

Hugh S. Johnson, 

Ad7ninhtrator. 
June 19, 1934. 



CODE OF FAIR COMPETITION FOR THE RETAIL 
TOBACCO TRADE 

Article I — PuurosES 

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 Retail Tobacco Trade, and its provisions shall be stand- 
ards of fair competition for such trade and shall be binding upon 
every member thereof. 

Article II — Definitioxs 

As used in this Code, the following words and phrases shall bo 
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 limita- 
tion, all cigars, stogies, cheroots, little cigars, cigarettes, smoking 
tobacco, chewing tobacco and snuff. 

Section 5. The term " retail tobacco trade " means and includes 
all selling of tobacco products directly to the consumer and not for 
the purposes of resale in any form. 

Section 6. The terms " tobacco retailer ", " retailer ", and " mem- 
ber of the trade " mean any person engaged wholly or partially 
either as an employer or for his own account in the selling of to- 
bacco products directly to the consumer and not for purposes of 
resale in any form. 

Section 7. The tenn " 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 8. The term " cigar " means and includes cigars, stogies, 
cheroots and little cigars. 

Section 9. The term " jobber " means any wholesale tobacco dis- 
tributor who buys directly from the manufacturer. 

Sectk^n 10. 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 11. The term " accredited cigar jobber " means any whole- 
sale distributor of cigars who maintains a sales organization and 

CS842° C57-12i> 34— — 2 (4I) 



42 

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 12. 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 13. 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 
serviced, and also bona fide central buying, storing, supervising and 
accounting organizations. 

Sect-ion 14. The term " retail tobacco establishment '* or " estab- 
lishment '' means any store, shop, stand or other place of retail busi- 
ness at which more than one-half in dollar volume of the sales made 
consists of tobacco products, or at which the principal line of busi- 
ness is the sale of tobacco products. 

Section 15. The term " employee " includes any and all persons 
engaged in the retail tobacco trade, however compensated, except a 
member of the trade. 

Section 16. The term " employer " means any person by whom 
any such employee is compensated or employed. 

Section IT. The term " executive " means an employee responsible 
for the management of a business or a recognized subdivision thereof. 

Section 18^ The term " outside salesman " means an employee who 
is engaged not less than eighty per cent (80%) of his working hours 
in selling outside the establishment, or any branch thereof, where 
he is employed. 

Section 19. The temi " junior employee " means an employee 
under eighteen (18) years of age. 

Section 20. The term " apprentice employee " means an employee 
with less than two (2) months experience in the retail tobacco trade. 

Section 21. The term " outside delivery employee " means an em- 
ployee engaged primaril}^ in delivering merchandise outside the estab- 
lishment where he is employed. 

Section 22. The term '' person " includes all individuals, firms, 
partnerships, unincorporated associations, corporations, and other 
forms of enterprise. 

Section 23. The term " State " means any State or Territory and 
the District of Columbia. 

Section 24. The term " South " includes the following States : 
Virginia, AVest Virginia, North Carolina. South Carolina, Georgia, 
Florida. Kentucky, Tennessee, Alabama, Mississippi, Arkansas, Lou- 
isiana, Oklahoma, New Mexico and Texas. 

Section 25. Population for the purposes of this Code shall be 
determined by reference to the latest Census of the United States. 

Section 20. The term ''Association " means Retail Tobacco Deal- 
ers of America, Inc. 

Section 27. The term " Council " means National Tobacco Coun- 
cil, Inc., a New York Cor|)oration, or such other agency as shall be 
designated for the jnirposes of Schedule I, hereto attached, by the 
Code Authority hereljy establislied and by the Code Authorities for 
the Cigar Manufacturing Industry and the AVholesale Tobacco 
Trade. 



43 

Article III ^ — Retail Stoke Hours and Hours of Labor 

Section 1. Basic Store Hours and Hours of Labor. — P^ach retail 
tobacco establishment shall within two weeks followinf^ the etfectivo 
date of this Code elect to operate upon one of the following; schedules 
of store hours and hours of labor, and shall post and maintain in a 
conspicuous place in the store a copy of such election showing its 
elected store hours and hours of labor, such posting to be in addition 
to the requirements of Article V, Sections 10 and 11 of this Code. 

Group (A). Any retail tobacco establishment may elect to remain 
open for business less than fifty-six (56) hours but not less than 
fifty-two (52) hours per week, unless its store hours were less than 
fifty-two (52) hours prior to June 1, 1933, in which case such estab- 
lishment shall not reduce its store hours ; except as herein otherwise 
provided no employee of such establishment shall Avork more than 
forty (40) hours per week, nor more than eight (8) hours per day 
nor more than six (6) da5^s per week. 

Group (B). Any retail tobacco establishment may elect to remain 
open for business fifty-six (56) hours or more per week but less than 
sixty-three (63) hours per w^eek; except as herein otherwise provided, 
no employee of such establishment shall work more than forty-four 
(44) hours per week, nor more than nine (9) hours per day, nor 
more than six (6) days per week. 

Group (C). Any retail tobacco establishment may elect to remain 
open for business sixty-three (63) hours or more per week; except 
as herein otherwise provided, no employee of such establishment 
shall work more than forty-eight (48) hours per week, nor more 
than ten (10) hours per day, nor more than six (6) days per week. 

Group (D). In place of any of the foregoing schedules, any retail 
tobacco establishment may elect to remain open for business seven 
(7) days a week for a total of eighty-four (84) hours or more per 
w^eek, but on no day for less than eight (8) hours; except as herein 
otherwise provided, no employee of such establishment shall work 
more than fifty-six (56) hours per week, nor more than ten (10) 
hours per day, nor more than six (0) days in any consecutive seven 
(7) days. 

No employee shall work for two or more establishments a greater 
number of hours, in the aggregate, than he would be permitted to 
work for that one of such establishments which operates upon the 
lowest schedule of working hours. 

Section 2. No office employees shall work more than forty (40) 
hours per week, nor more than eight (8) hours per day, nor more 
than six (6) days per week except that two such employees in each 
establishment may be permitted to work not in excess of forty-eight 
(48) hours per week. 

Section 3. No retail tobacco establishment ma}^ change from the 
Group in which it has elected to operate except upon December 31, 
of every year. 

Any retail tobacco establishment may at any time, however, in- 
crease its store hours, provided it maintains the basic work week of 
the Group in which it originally elected to operate. 

^ ECfective June 25, 1^?A. See pai'agraph 2 (5) of order approving tliis Code. 



44 

Any retail tobacco establishment may, for a period not to exceed 
three months during the summer, temporarily reduce its store hours, 
but the weekly wages of employees shall not on that account be 
reduced. 

Section 4. Executives who earn not less than $30.00 per week, 
and outside salesmen, may be permitted to work in excess of the 
maximum hours provided in this Code. 

Section 5. Outside delivery employees may be permitted to work 
not in excess of forty-eight (48) hours per week and not in excess of 
ten (10) hours per day. 

Section 6. For a period not to exceed two (2) weeks in the cal- 
endar year, an employee whose basic work week is forty (40) hours 
may work not more than forty-eight (48) hours per week and nine 
(9) hours per day; an employee whose basic work week is forty-four 
(44) hours may work not more than fifty-two (62) hours per week 
and nine and one-half (91/2) hours per day; an employee whose basic 
work week is forty-eight (48) hours may work not more than fifty- 
six (56) hours per week and ten (10) hours per day. All such work 
may be without payment of overtime. 

Section 7. On one day each week employees may work one extra 
hour, but such hour is to be included within the maximum hours 
permitted each week. 

Section 8. The hours worked by an employee during each day 
shall be consecutive, provided that an interval not longer than one 
hour may be allowed for each regular meal period, and such interval 
not counted as part of the employees' working time. 

Article IV ^ — Wages of Employees of Retail Tobacco 
Establishments 

Section 1. The minimum weekly rates of wages which shall be 
paid to employees of retail tobacco establishments for a work week 
as specified in Article III whether such wages are calculated upon 
an hourly, weekly, monthly, commission, or any other basis, shall 
except as hereinafter provided be as follows : 

(a) Within cities of over 500,000 population, no employee shall 
be paid less than at the rate of $15.50 per week for a forty (40) 
hour work week, nor less than at the rate of $16.00 per week for 
a forty-four (44) hour work week, nor less than at the rate of $16.50 
per week for a forty-eight (48) hour work week, nor less than at 
the rate of $17.50 per week for a fifty-six (56) hour work week, 

(b) Within cities of from 100,000 to 500,000 population, no em- 
ployee shall be paid less than at the rate of $14.50 per week for a 
forty (40) hour work week, nor less than at the rate of $15.00 per 
week for a forty-four (44) hour work week, nor less than at the 
rate of $15.50 per Aveek for a forty-eight (48) hour work week, nor 
less than at the rate of $16.50 per week for a fifty-six (56) 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 $13.00 per week for a 
forty (40) hour work week, nor less than at the rate of $13.50 per 
week for a fort3^-four (44) hour work week, nor less than at the 

» Effective June 25, 1984. See paragraph 2 (5) of order approving tills Code. 



45 



)f $14.00 per Aveek for a forty-eight (48) hour work week, nor 
han at the rate of $15.00 per week for a fifty-six (50) hour 



rate of 
less th 
work week. 

(d) Within cities, towns, villages of from 2,500 to 25,000 popu- 
lation, the wages of all classes of employees shall be increased from 
the rates existing on June 1, 1933, by not less than 20 per cent, 
provided that this shall not require an increase in wages to more 
than the rate of $11.50 per week, and provided further that no 
employee shall be paid less than at the rate of $11.00 per week, 

(e) Within towns, villages and other places with less than 2,500 
population, the wages of all classes of employees shall be increased 
from the rates existing on June 1, 1933, by not less than twenty per 
cent (20%), provided that this shall not require an increase in wages 
to more than the rate of $10.00 per week. 

Section 2. The minimum wages paid to outside salesmen and 
outside delivery employees shall be upon the basis of the basic em- 
l^loyee work week upon which the establishment by which they aro 
emplo3^ecl has elected to operate. 

Section 3. In the South all minimum wages specified in Section 1 
of this Article may be at the rate of $1.00 less per week. 

Section 4. No office employee shall be paid less than at the rate of 
$16.00 for a forty (40) hour'w^ork week. 

Section 5. Office boys and messengers may be paid $2.00 per week 
less than the minimum wage rate provided in Section 4 of this 
Article, provided that where there is more than one such office boy 
or messenger not more than ten per cent (lO^o) of the total number 
of office employees shall be so paid. 

Section 6. Junior employees, other than office boys and messen- 
gers, may be paid for the first six (6) months of their employment 
at the rate of $2.00 less per week than the minimum wage otherwise 
applicable; apprentice employees, other than office boys and mes- 
sengers, may be paid at the rate of $1.00 less than the minimum wage 
otherwise applicable. The number of employees classified as junior 
and apprentice employees combined shall not exceed a ratio of one 
such employee to every five (5) employees or fraction thereof up to 
twenty (20) or more than one such employee for every ten (10) 
emploj^ees above twenty (20). 

Section 7. The weekly wages of all employees receiving more than 
the minimum Avages specified in this Article shall not be reduced 
below the rates existing on June 1, 1933, nothwithstanding any 
reduction in the number of working hours of such employees. 

Section 8. A person whose earning capacity is liuiited because of 
age or physical or mental handicap or other infiruiity may be em- 
ployed on light work at a wage below the minimum established by 
this Code if the emploj^r 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. Each employer shall file monthly with 
the Code Authority a list of all such persons employed by hiui, show- 
ing the wages paid to, and the maximum hours of work for such 
employee. 



46 
Article V — General Labor Provisions 

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

Section 2. No employee and no one seeking employment shall 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 retail tobacco trade, except that persons fourteen 
(14) and fifteen (15) 3- ears of age, being members of the family of 
an individual retailer, may be employed by that retailer, either 

(a) for a period of not to exceed three (3) hours per day on six 
(6) days per week: or 

(b) for one day per week, such day not to exceed eight (8) hours. 
In either case, all such hours of work shall be between 1 A.M. and 

7 P.M., and shall not conflict with the employee's hours of day school, 
provided, however, that no person under the age of eighteen (18) 
3^ears shall be employed in delivering merchandise from motor 
vehicles. 

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 check, payable on demand. AH contracts 
of employment shall prescribe payment of wages at least every two 
weeks and salaries at least as often as every month. 

Section T. No provision in this Code shall supersede any State 
or Federal law wliich 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, tliau 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 reemplo3^ed at a lower rate of ])ay for the 
purpose of evading the provisions of this Code. 

Section 10. All employers shall post complete copies of the pro- 
visions of this Code dealing with hours, wages and conditions of 
('in])loyment in conspicuous [places of easy and continuous access to 
employees. 



47 

Section 11. Each member of the industry shall comply with such 
rules and regulations with regard to the posting of notices, bulle- 
tins and extracts of Code provisions as may 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 tlirougliout the estab- 
lishment. 

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. Aft^r 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 required by law, for pension, insurance 
or benefit funds. No employer shall withhold wages except U})on 
service of legal process or other papers lawfully requiring such with- 
holding. 

Deductions for other purposes not heretofore stated may be made 
only pursuant to a contract in writing and kept on file by the em- 
ployer for six months after the termination of the contract and 
which shall be kept open for inspection of Government represen- 
tatives. 

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 

PART I— cigar merchandising PLAN " ^ 

The Merchandising Plan in Schedule I annexed hereto, adopted 
for the Cigar Manufacturing Industry and for the Wholesale To- 
bacco Trade in their respective Codes of Fair Competition and here- 
inafter for convenient reference in part repeated, 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 
retail tobacco trade are hereby made rules of fair practice and fair 
competition for all members of the retail 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 
Wholesale Tobacco Trade and the Cigar Manufacturing Industry. 
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. 



2 Effective June 25. 1034. See paragraph 2 (1) of order approving this Code. 

3 Provisions for filing of prices and discounta stayed uutil further orders. Sea 
paragraph 2 (3) of order approving this Code. 



48 

Section 1. In the case of all cigars purchased by retailers from 
cigar manufacturers, jobbers, or sub- jobbers in connection with which 
a retail price shall have been recorded by the manufacturer with the 
Council, 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 dis- 
count may be allowed of not more than five per cent (5%) from 
the retail price, and (2) in the case of sales at retail of boxes of 
twenty-five cigars or more a discount of not more than eight per 
cent {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 per cent (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 cigai-s or ten pads 
per box of fifty 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 mini- 
mum 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 clearance or bona fide dis- 
continued lines of merchandise or imperfect or actually damaged 
merchandise or merchandise sold upon the complete 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 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 mer- 
chandise 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 ex- 
pressly provided wherever under any of the provisions of this mer- 
chandising plan any cigar is required to be sold at retail at a mini- 
mum price, such minimum retail price shall not be reduced directly 
or inclirectly 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 allowances whether in the form of money or otherwise; nor shall 
any retailer offer or extend special service or privilege to any cus- 
tomer which is not available to all customers. 

Section 5. Ui:>on the reconnnendation of the Code Authority estab- 
lished by this Cfode, or the Code for the Cigar Manufacturing Indus- 
try or the Code for the Wholesale Tobacco Trade or upon application 



49 

of any member of the cijjar manufactiiriii<j; industry or of the whole- 
sale tobacco trade or of the retail tobacco trade and the approval 
of such reconnnendation 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 cif^ars by any member of the 
trade, and such determination shall be elective only upon the con- 
currence of all three Code Authorities and, subject to the further 
approval of the Administrator, such minimum discounts shall be 
binding; upon all members of the trade. 

Section 6. Any change in the retail price shall be applicable as 
at the eifective date of such change to all merchandise thereafter 
sold by retailers. 

Section 7. Nothing in this merchandising plan shall be consti'ued 
to prevent the free and general distribution of articles commonly 
used for advertising purposes and i)remiums, 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 8. All prices and discounts filed with the Council by manu- 
facturers, jobbers or subjobbers, as hereinbefore provided shall imme- 
diately 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. 

PART II minimum prices FOR PRODUCTS NOT GOVERNED BY THE PLAN 

As to cigars tenth respect to lohich the prow\s~ions of Part I or 
/Schedule I sh.aU not at the ti^iie he operative or shall he stayed and 
as to cigarettes^ smoking tohacco, cheinng tohacco and snuffs the fol- 
lowing trade practices shedl he ohserved hy all memhers of the retail 
tohacco trade.^ 

Section 1. No tohacco retailer shall at any tivie sell any such to- 
haeco product helow the merchandise cost thereof to such retailer. 
For the purposes of this Article the term " merchandise cost " means 
{!) actual net delivered cost less trade discmint s^ or current replace- 
ment cost, whichever is lower; and in addition thereto, (^) the 
amount of any tax on the sale of the product directly paid hy the 
retailer, or (-5) in the event of a sale involving a shipment to a huyer 
situated at the time of such sale in another State, an am aunt equal 
to all taxes {other than taxes paid directly hy the manufacturer) 
which woxdd he included in the sale price of such product were such 
product hought from a retailer located in such State.^ 

Section 2. The Code Authonty shcdl fro-m time to time upon such 
notice and opportunity to he heard, if any, as the Administrator may 
require, determine the lowest reasonahle cost of the retail distrihu- 
tion of tohacco products, such determination to he subject to the ap- 

•* Italicized words deleted. See paragrapii 2 (4) of order approving tliis Code. 



50 

provdl of the Ad??iinhtrafor. In determining the lowest reasonable 
cost of the retail distrihution of tobacco products^ no significant 
channel of distrihution shall he excluded from consideration wpon 
the ground that only a partial distrihution of tohacco products is 
made through such channM, hut the extent and character of distribu- 
tion in the several respective significant channels of distribution are 
factors that shall he given due xoelght by the Code Authority in 
reaching its determination of lowest reasonable cost. It slmll be an 
unfair trade practice and is hereby prohibited for any tobacco re- 
tailer to sell or offer to sell any tohacco product at such price or upon 
such terms or conditions of sale that the buyer ivlll pay less therefor 
than such lowest reasonable cost of distribution as so deteiwvined 
and approved.^ plus the merchandise cost thereof to such retailer^ 
provided., however., thM such 7nhil.muni price., in the case of any to- 
bacco product purchased by the retailer directly from the maiiufac- 
turer., shall include., in addition to the foregoing., the difference., if 
any., between the net delivery cost l-ess trade discounts to the retailer 
upon such direct purchase from, the manufacturer., and the jobbers'* 
net wholesale price then prevailing loith respect to the said product. 

The tobacco retailer may give not more than one pad of matches 
for each unit sold or five pads for each package of ten units sold. 
In the case of all sales in combination of two or more articles, the 
price of each article shall be plainly indicated.^ 

Section 3. PendAng a determination pursuant to Section 2 of this 
Part II., and in order temporarily to restrict destructive price-cut- 
ting in the retail tobacco trade., the Administrator may., subject to 
such notice and opportunity to he heard as he niay deem necessary ., 
fix a basis for the computation of the minimum retail pHce of to- 
bacco products., which shall be binding on all retailers.^ 

Section Jf. N otwithstanding the provisions of this Part II, any 
tobacco retailer may sell any tobacco products as low as the price 
set by any competitor m his trade area on merchandise which is 
identical or essentially the same, if such competitor''s price is set in 
conformity iinth the provisions of this Section, provided that such 
tohacco retailer shall immediately notify the Code Authority or its 
nearest local agency of such action and of all facts pertinent 
thereto.^ 

Section 6. In computing minimum unit prices under this Part II, a 
fraction of a cent shall be treated as a full cent. In computing min- 
imum prices for more than one unit of the same article, such mini- 
mum unit price shall be multiplied by the number of units sold. 
If the resulting total be one dollar or less, a discount of not more 
than 5% may be allowed, and if it be greater than one dollar, a dis- 
count of not more than 8% may be allowed. If the net multiple 
price, so calculated, contains a fraction of one cent, such fraction 
shall he treated as one full cent.^ 

"As to cifjars, 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 pric- 
ing practices are declared to be as follows : 

» Italicized words deleted. See paragraph 2 (4) of order approving this Code. 



51 

"Section 1. {(i) Wilfully destructive price cutting is an vmfair 
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, imperil- 
ling small enterprises or tending toward monopoly or the impair- 
ment of code wages or working conditions. The Code Authority 
shall, within five da^'s, 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 con- 
curred in b}^ either party to the complaint, all papers shall be re- 
ferred to the Research and Planning Division of NIIA, 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 tl\at consideration should be given to costs (including costs of 
retail distribution) in the determination of pricing policies. 

''{c) AVhen 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. Emergeney Provis-loiis — 

"(a) If the Administrator, after investigation, shall at any time 
find both (1) that an emergency has arisen within the trade, ad- 
versely 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 condi- 
tions 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 retail distribution) and to 
recommend to the Administrator a basis for determining minimum 
prices of the said products or the said specified part thereof affected 
by the emergency, and thereupon the Administrator may proceed 
to fix a basis for determining such minimum prices. 

"(^) When the Administrator shall have fixed a basis for deter- 
mining minimum prices for the said products or said specified part 
thereof for a stated period, which prices shall be reasonably calcu- 
lated to correct the conditions of such emergency and to effectuate 
the purposes of the Act, he shall publish the said basis. Thereafter, 
during such stated period, no member of the trade shall sell such 
products at a net realized price below the minimum price deter- 
mined upon the basis 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 reconsidered, 
and api:»ropriate action taken." ^ 

rroamble and Sections 1 ami 2 added. Sec paragraph 2 (4) of order appi'oving 
this Code. 



52 

Section 3. Notwithstanding any of the provisions of this Part II, 
any tobacco retailer may sell at less than the prices therein prescribed 
merchandise sold as bona fide clearance or bona fide discontinued 
lines of merchandise or imperfect or actually damaged merchandise 
or merchandise sold upon the complete 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 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 merchan- 
dise 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 approval of the Administrator. 

Section 4. Except as in this Part II otherwise expressly provided 
wherever, under any of the provisions of this Article VI, any tobacco 
product is 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 mer- 
chandise coupons, prizes or premiums, or any other thing of value 
or any discount, rebate, refund, commission, credit or allowance 
whether in the form of money or otherwise; nor shall any retailer 
offer or extend any special service or privilege to any customer v/hich 
is not available to all customers. 

Section 5. Nothing in this Part II shall be construed to prevent 
the free and general distribution of articles commonly used for 
advertising, except so far as such distribution would constitute in 
event an additional discount or reduction in price below the minima 
established hereby. 

Article VII — Trade Practices 

Section 1. False Advertising. — The making or causing or permit- 
ting to be made or published of any false, untrue or deceptive state- 
ment by way of advertising or otherwise concerning the grade, 
quality, quantity, substance, character, nature, origin, size or prepara- 
tion of any product of the trade, having the tendency or capacity 
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. — The infringement of established 
trademarks and the use of trademarks or trade names which will 
result in deception of the public or enable dealers to perfect such 
deception is prohibited as an unfair method of competition. 

Section 3. False Billing. — No tobacco retailer shall knowingly 
withhold from or insert in any quotation or invoice any statement 
that makes it inaccurate in any material particular. 

Section 4. Inaccurate LaLelling. — No tobacco retailer shall brand 
or mark or pack any tobacco product in any manner Avhich is in- 
tended to or does deceive or mislead }mrchasers with respect to the 
brand, grade, quality, quantity, origin, size, substance, character, 
nature, material content, or preparation of such tobacco product. 



53 

Section 5. Inaccurate References to Co-mpetitors^ etc. — No tobatco 
retailer shall publish advertising which refers inaccurately in any 
material particular to any competitor or his goods, prices, values, 
credit terms, policies or services. 

Section 6. Threats of Law Suits. — No tobacco retailer shall pub- 
lish or circulate unjustified or unwai-ianted threats of legal pro- 
ceedings which tend to or have the effect of harassing competitors 
or intimidating their customers. P'ailure to prosecute in due course 
shall be evidence that such threat is unwarranted or unjustified. 

Section 7. Brihhig Employees. — No tobacco retailer shall give, 
permit to be given, or directly or indirectly offer to give, anything 
of value for the purpose of influencing or rewarding the action of 
any employee, agent or representative of another in relation to the 
business of the employer of such employee, the principal of such 
agent or the represented party, without the knowledge of such 
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. 

Section 8. Interference ivith Another^s Con-tracts. — No tobacco 
retailer shall attempt to induce the breach of an existing contract 
between a competitor and his customer or source of supply; nor 
shall any such retailer interfere with or obstruct the performance 
of such contractual duties or services, with the purpose and effect 
of hampering, injuring or embarrassing competitors in their business. 

Section 9. Coercion. — No tobacco retailer shall require that a pur- 
chase of any tobacco products or other goods be a prerequisite to the 
purchase of any other tobacco products. 

Article VIII — Organization, Powers, and Duties or tjie Code 

Authority 

organization and constitution 

Section 1. There shall forthwith be constituted a Code Authority 
consisting of not more than ten (10) members selected as f (allows: 

Two (^) members shall be members respectively of the retail food 
and grocery trade and of the retail drug trade engaged in the sale at 
retail of tobacco products and each shall be designated by the Code 
Authority established by the code of fair competition for his trade. 

One (1) member shall be appointed by the Consumers' Advisory 
Board of the National Recovery Administration. 

Six (6) members shall be representative of the retail tobacco trade 
and shall be designated by the Board of Directors or the Executive 
Committee of Retail Tobacco Dealers of America, Inc. One of the 
said six (6) members shall represent a national chain of tobacco 
stores and five (5) of the said six (6) shall represent other tobacco 
retailers. 

One (1) member shall be representative of and selected hy the 
non-members of Retail Tobacco Dealers of America, Inc., non-mem- 
bers of any of its affiliated associations and shall be designated pur- 
suant to a plan which shall be submitted to the Administrator for 
his approval by the other members of the Code Authorit}'' wuthin 
fifteen (15) days after the effective date hereof. 



54 

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 or expense to the trade. 

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

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

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- 
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 (30) 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 pro- 
visions 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 required 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 statis- 
tical information as the Administrator may deem necessary for the 
purposes recited in Section 3 (a) of the Act to such Federal and 



55 

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 associations and other agencies as it deems proper 
for the carrying out of any of its activities provided for herein, pro- 
vided 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 ccmiply with 
the provisicms hereof. 

(e) To make recommemlations 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 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 main- 
tain the standards of fair competition established hereunder, the 
Code Authority is authorized : 

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

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

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

(2) Each member of the trade shall be liable for his or its equita- 
ble 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 
Authority or to receive the benefits of its voluntary activities or to 
make use of an}^ 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 meas- 
ures deemed advisable, including further fair trade practices, in 
tlieir 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 uj^on 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 Connnittees appointed under such other codes as 
may be related to the trade for the purpose of formulating fair trade 



56 

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. 

(j) To provide approjDriate 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 
Authoritiy 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 
operative as a part of this Code. 

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 regula- 
tion issued under said Act. 

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

Article X — Monopolies, Etc. 

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 enteiprises. 

Article XI — Effective Date 

This Code shall become effective on the date specified in the order 
of approval by the President of the United States. 

Approved Code No. 4G6. 
Registry No. 1015-30. 



SCHEDULE I 

Cigar Merchandising Plan ' * 
A. saij:s by cigar manufacturers 

Section 1. As to each of the cigars of his manufacture, each cigar manu- 
facturer shall record with the Council the minimum sales price at which such 
cigar is intended to be sold at retail (exclusive of any gin-ernmental 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 com- 
puting the discounts and terms for all dealers as hereinafter provided ; and 
shall also record with the Council the discounts and credit terms to be allowed 
by him from the retail price in connection with the several respective classes 
of transaction described in subdivisions (a) to (d) inclusive of Section 2 of 
this Division A. The retail price and, within the limits hereinafter prescribed, 
the discounts shall be subject to change at the discretiou of the manufacturer, 
provided the revised price or discounts as the case may be, be recorded with 
the Council at least five (5) days before the change becomes effective unless a 
shorter time be reqwired by a cigar niantifaeturcr in order to meet a competi- 
tor's reduction of price which is not in violation of this merchandising planJ* 
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 discretion 
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 ehiiins of 
stores and other than drop shipment sales under subdivision (d) of this Section 
2, a discount of not more than twenty-eight percent (287f ). 

(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 sub- 
division (a), of not more than sixty-six and two-thirds percent (6(3%%) of the 
established discount to accredited jobbers. Provided, however, that in terri- 
tories where no accredited cigar jobber exists, a manufacturer may allow a 
cigar service jobber a discount not to exceed ten percent (10%) on any par- 
ticular class of cigars in addition to the discount which shall have been estab- 
lished 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, make 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 be 
made only in quantities of not less than 2.O0O cigars in the case of Class A and 
Class B cigars, and not less than 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 Ito allowed by the manufacturer or 
jobber, whichever shall make the billing. 

The cigar manufacturer may in connection with each drop shipment sale 
allow to the accredited cigar j(ibl)er who has requested or con.sented to such 



- Effpctive June 25. 19.34. See paragraph 2 (1) of order approving this Code. 
^ Provisions for filing of prices and discounts stayed until further orders. See 
paragrnph 2 (.3) of order approving this Code. 

* Italicized words deleted. See paragraph 2 (2) of order approving this Code. 

(57) 



58 

sale n 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 subdivision (b) 
above. 

(e) In tlie case of sales to chains of stores, discounts not exceeding tlie 
discounts which the manufacturer shall have established for his sales to ac- 
credited cigar jobbers under subdivision (b), provided, however, that each cigar 
manufacturer may determine in his own dLscretion to which chains, if any, he 
will make direct sales and, within the limits hereinabove prescribed, 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 allow a further discount of two percent 
(2%) for cash within his established credit terms. 

Nothing herein contained shall prevent any cigar manufacturer from estab- 
lishing within the maximum pei-centage limits hereinabove prescribed a differ- 
ent 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 manufacturer ; but each cigar manufacturer shall apply his 
established system of discounts uniformly as to each of the classes of transac- 
tions 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 miiform and may vary in each individual case. 

Secition 3. No manufacturer sliall 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 valu3 
or any special deal, discount or allowance conditioned upon the purchase 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. 

B. SALES BY JOBDiER.3 AND SUD-JOBBEUS 

Section 1. Each jobber shall record with the Council the discounts and 
credit termsi (not exceeding the discounts which such jobber shall have received 
from the manufacturer) 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 
sul)-jobbers. Such discounts shall be subject to change at the discretion of the 
jobl.er provided that the revised discounts be recorded with the Council at least 
three (3) daiis before the change becomes effective miiless a sJwrter time he 
required in order to meet a eompetitor's reduction of price which is not in 
violation of this merehandising plan;* and the discounts so recorded shall so 
lonp: as effective apply to all such re^^ales by the jobber to sub-jobbers and there 
shall in no case be any individual variation or variations from the discount 
or discounts so estal)lished. 

Sf-ction 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 jol)ber or sub-jobber shall have received from the manufac- 
turer 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 iirovided the revised discounts be recorded with the Council 
at least three {.i) day:^ before the change becomes effective unless a shorter 
time he required in order to meet a eompetitor's reduetion of price which is not 
in violation of tJiis merehandising plan;^ and the discounts 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 H. Each resale by a jobber or sub-jobber under this merchandising 
plan shall be evidenced by an itemized invoice. 



* Italicizpd words dck'tcd. See pju-ngmph 2 (2) of order approving this Code. 



59 

Section 4. Nothing in this Division P. contained shall affect or modify the 
provisions above set I'ortii in I)ivision A in relation to drop shii»ment sales. 

Skciion T). No jol)l)er or siih-johhcr sliall 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. 

C. SALKS I5Y UlirrAILERS 

Section 1. In the case of all cigars purchased by i-elailers from cigar manu- 
facturers, jobbers or sub-.iol)bers 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 (10) units (except in the case of cigars selling for less than 
five cents i^) 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 of 
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 (S%) in which case the marked box price shall be 
observed as a minimum, and (3) the retailer may give not more than one (1) 
pad of matches for each unit sold, or five (5) pads per box of twenty-five (25) 
cigars or ten (10) pads per box of fifty (50) cigai*s 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 i)rices herein provided. 

Skction 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 ijlan, any 
tobacco retailer may sell at less than the prices therein prescribed merchandise 
sold as bona fide clearance or bona fide discontinued lines of merchandise or 
imperfect or actually damaged merchandise or merchandise sold upon the 
complete final liquidation of any business or merchandise donated for char- 
itable 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 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 i>rescribefl 
prices therefor and provided further that such merchandise shall be disposed 
of pursuant to any regulation as to the manner of such disixtsal 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 pi-o- 
vided wherever under any of the provisions of this merchandising plan any 
cigar is 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, i-ebate, refund, commission, credits 
or allowances whether in the form of mcniey or otherwise; nor shall any 
retailer offer or extend special service or privilege to any customer which is 
not available to all customers. 

D. MINIJIUJI DISCOUNTS 

Upon the recommendation of the Code Authority established liy the Code for 
the Cigar Manufacturing Industry or the Code for the Wholesale Tobacco Trade 
or the Code for the Retail Toltacco Trade or upon application of any member 
of the Cigar Manufacturing Industry or of the Wholesale Tobacco Trade or 
of the Retail Tobacco Trade and the approval of such recommendation or appli- 
cation 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 motion minimum discounts 
to be prescribed in connection with sales of cigars by any member of said 
Industry or Trades and such determination .shall be effective only upon the 



60 

concurrence of all three (3) Code Authorities and, subject to the further 
appi'oval of the Administrator, such minimum discounts shall be binding upon 
all such members. 

E. PROVISIONS APPLICABLE TO ALL, SALES OF CIGARS 

Section 1. Wherever any of the provisions of this merchandising plan pro- 
vide for two (2) or more discounts from the retail price, such discounts shall 
be computed 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 
date 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 pre- 
vailing 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 distribution 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 AcSministrator as to the publication and dissemination thereof. 

o 



Approved Code No. 467 
CODE OF FAIR COMPETITION 

FOR THE 

CIGAR MANUFACTURING INDUSTRY 

As Approved on June 19, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE OKDER 

Code of Fair Competition for the Cigar Maxufacturing 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 Cigar Manufacturing Industry, and 
hearings having been held thereon and the Administrator having 
rendered his report containing an anal3'sis of the said Code of Fair 
Competition together with his rec<jnnuendations and findings with 
respect thereto, and the Administrator having found that the said 
Code of Fair Competition complies in all respects with the pertinent 
provisions of Title I of said Act and that the requirements of clauses 
(1) and (2) of subsection (a) of section 3 of the said Act have 
been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by Title I 
of the National Industrial Recovery Act, approved June IG, 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, and shall become 
effective on the date of this Order; subject, however, to the following 
conditions : 

(1) That the provisions of Article VI and of Schedule I — the 
Cigar Merchandising Plan — be stayed and shall not become effective 
until Monday, June 25, 1934. 

(2) That the waiting periods of five and three days contained in 
Article VI, Section I, and Schedule I, Part A, Section 1, and in 
Schedule I. Part B, Sections 1 and 2, respectivel}^, be stayed and 
shall not become effective, notwithstanding said cigar merchandising 
plan becoming effective, until the further order of the Administrator. 

68841° 657-124 34 1 (CI) 



62 

(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 
industry and customers willing to pay the cost thereof. 

(4) 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. 

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

Administrator. 

The White House, 

June 19, 193Jf. 



LETTER OF TRANSMITTAL 

The President, 

The White House. 

Sik: a Public Hearing on the Code of Fair Competition for the 
Cigar ISIanufacturing Industry, submitted by the Associated Cigar 
Manufacturers and Leaf Tobaceo Deahu's, was heUl in Washington, 
D.C, on the t^2nd and 2'h'd of November, 1988, in accorchuice with 
the provisions of the National Inchistrial Recovery Act, pursuant to 
Notice of Hearing signed by the Secretary of Agriculture under 
Executive Order of June 26, 1938. On April 7, 198-1, jurisdiction 
over this Code was transferred to the National Recovery Adminis- 
tration, pursuant to Executive Order of January 8, 1984. 

Certain changes have been made in the Code to conform to NRA 
policy, but the.se changes are not in conflict with the transcrii)t of 
the record at the Public Hearing, information and facts filed in 
briefs or adduced at post-hearing conferences with the Code Com- 
mittee. The Association claims to represent more than 80% of the 
industry and at the Public Hearing, the proposed Code had the 
practically unanimous support of the industry as well as tobacco 
wholesalers and retailers and tobacco farmers. 

ecokomk; effect of the code 

It is stated that the year 1920 was the attainment of the peak for 
the Cigar Manufacturing Industry. In that year employees en- 
gaged in the industry were slightly in excess of 115,000. In 1929 
the number of emploj^ees had declined to approximately 8'4,000. 
Today the number of employees is said to be in the neighborhood 

of no^ooo. 

In 1919 the industry employed 1,100 machine workers and 112,000 
hand workers. Since that time there has been a marked displace- 
ment of hand workers in favor of machine workers, but it is not 
claimed that wage earners have been displaced entirely by reason of 
the introihiction of nuichinery. 

Female emi)loyees comprise approximately 79% of the total num- 
ber of employees. 

The inchistry comprises approximately l,2r)0 establishments with 
total payrolls of $34,200,000. 

HOURS AND WAGES 

lender the Code clerical, accounting or other office employees are 
limited to 40 hours per week and 8 hours per day. All other em- 
ployees are limited to 40 hours per week but without limitation as to 
hours per day. Exceptions are })rovided for executive, supervisory, 
technical and administrative employees receiving salaries in excess 
of $85.00 per week, outside salesmen, watchmen, chauffeurs, and de- 



64 

liverymen, firemen and engineers, sliipping department employees, 
and employees on emergency repair work. 

The minimum hours may be exceeded during two peak seasons 
per year to be determined by the Code Authority subject to the 
approval of the Administrator. 

With the exception of watchmen, employees are limited to a 6 
day working week. 

Watchmen are limited to 56 hours per week with a minimum rate 
of pay of $15.00 j^er week, and office employees are limited to 40 
hours per week with a minimum rate of pay of $15.00 per week. 

The Code establishes a minimum wage rate per hour for the two 
manufacturing classes within the industry, viz : (1) machine workers, 
(2) hand workers. 

In the stogie and hand-made cigar industry, wage rates are grad- 
uated from minima of 250 per hour to 34^ per hour. One such 
graduation of wages is a provision that cigar makers in this branch 
of the industry who are engaged in the production of Class C or 
higher priced cigars shall receive 40 more per hour as a minimum 
wage. A purpose of this graduation in wages is to insure to labor 
a part of the increased return for the more expensive products of 
the industry. In the machine made cigar industry, wage rates are 
graduated on a somewhat different basis between the same two 
figures. 

The wage rates, established in the Code, provide that the skilled 
worker, in this case the hand-worker, be paid a lower rate of pay 
per week than the unskilled worker, the machine-worker. The re- 
sult of this method, it is claimed, will serve to curb the displacement 
of hand-workers which has taken effect at a disproportionate rate 
since 1920. 

The Code provides for equitable adjustments. 

The reduction in working hours of employees will not result in 
reemployment but will result in stabilizing, to some extent, present 
employment within the industry. 

It is estimated that the minimum wage rates established in the 
Code will definitely increase the hourly rates and weekly wages paid 
to wage earners over the wages previously paid employees in this 
industry. 

Article V, Section 14 provides that, " at the expiration of nine 
months after the effective date of the Code, the industry shall peti- 
tion the President or the Administrator to review the provisions of 
the Code relating to hours of labor and rates of pay." 

The wage and hour provisions meet with the approval of organ- 
ized labor in this industry and the Labor Advisory Board. 

CIGAR MERCIIANniSING PLAN 

The outstanding feature of the fair trade practice provisions is 
the cigar merchandising j^lan, which is also to be found in the 
whok'sale and retail tobacco codes. It provides for the retail sale 
of cigars at prices not less than those declared by the manufacturer 
for each of his products, and further prescribes maxinuun discounts 
allowable by manufacturers or wholesalers from those prices. 

Tliis phm originated with the retail deah'rs and was proposed by 
them to the wholesalers and cigar manufacturers. At the Public 



65 

Heariiif; on this code it was supported by these three o^r()uj)s as well 
as by representatives of tobacco <j-rowers. It now has the approval 
of tlie Consumers Advisory Board, Industrial Advisory Board, 
Labor Advisory Board, and Le<ral Division. 

It has lon<)- been a recoo-nized custom of th(> in(histry for manu- 
facturers to declare intended retail prices, antl the internal revenue 
taxes on ci<>ars are computed on such a basis. The i)lan is based 
on this custom, but free competition between manufacturers, as w^ell 
as the industry's reco<2;nition of the imperative need for retention 
of the five-cent cij^ar, 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 ])rovisions limiting- the amount of such discounts. This plan 
will i)erniit each manufacturer to make the best possible cigar in 
each price class. 

At the same time, the use of cigars as " loss leaders " by unrelated 
business has placed a severe burden on persons whose welfare de- 
pend on the tobacco business. It is hoped that the establishment of 
minimum retail prices Avill stabilize employment for this large class 
of persons who are, for the most part small business men, dependent 
for their livelihood on this trade. 

FINDINGS 

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 : 

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

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

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



66 

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

For tlie above reasons this Code is hereby recommended for 
approval. 

Respectfully, 

Hugh S. Johnson, 

Adviinis trator. 
June 19, 1934. 



CODE OF FAIR COMPETITION FOR THE CIGAR MANU- 
FACTURING INDUSTRY 

Article I — Purposes 

To effectuate tlic ])olicies of Title I of tlie National Industrial 
Recovery Act, this Code is established as a Code of Fair Competi- 
tion for'the Cigar Manufacturin*? Industry, and its provisions shall 
be standards of fair competition for such industry 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 " cigar manufacturing industry " means and 
includes the manufacturing into cigars of cured leaf tobacco, 
stemmed tobacco, scrap, and/or shredded filler for use in the manu- 
facture for sale of cigars. 

Section 5. The term " cigar " means and includes cigars, stogies, 
cheroots and little cigars. 

Section 6. The terms "member of the industry ", " manufac- 
turer " and " cigar manufacturer "' mean and include without limi- 
tation any person engaged either as an employer or for his or its 
own account in the Cigar Manufacturing Industry. 

Section 7. The term " employee " includes any and all persons 
engaged in the industry, however compensated, except a member of 
the industry. 

Section 8. The term " employer " means any person by whom any 
such emplo3^ee is compensated or employed. 

Section 9. The term '' productive employee " means any employee 
working in the factory and included in the factory payroll, and 
governed by the factory regulation. 

Section. 10. The term " unskilled labor " means and includes com- 
mon labor not requiring previous training and excludes hand and 
machine cigar makers, packers, strippers, inspectors, banders, and 
cellophane operators. 

Section 11. The term " watchman ■' means any employee who for 
not less than ninety (90) percent of his working hours is engaged 
in watching and guarding the premises of the establishment. 

Section 12. The term " deliveryman " means any employee whoso 
principal function is the delivery of merchandise, and who does not 
sell. 

68841° 657-124 34 2 (67) 



68 

Section 13. The term " outside salesman " means any salesman v/ho 
performs principally the selling function outside the establishment 
Avhere he is employed, and who may deliver. 

Section 14. The term " south " includes the following States : Ala- 
bama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, 
North Carolina, South Carolina, Tennessee, Texas and Virginia. 

Section 15. 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 1G. The term " cigar service jobber " means any wholesale 
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 17. The term "jobber " means any wholesale distributor 
of cigars who buys directly from the manufacturer. 

Section 18. The term '■'• sub-jobber " means any wholesale distrib- 
utor of cigars, who purchases cigars from jobbers or jobbing estab- 
lishments of manufacturers instead of directly from manufacturers. 

(A person may be a jobber as to certain cigars and a sub- jobber 
as to others.) 

Section 19. The term " retailer " means any person engaged 
wholly or partially for his own account in the selling of cigars di- 
rectly to the consumer and not for purposes of resale in any form. 

Section 20. 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 
serviced, and also bona fide central buying, storing, supervising and 
accounting organizations. 

Section 21. The term " person " includes all individuals, firms, 
partnerships, unincorporated associations, corporations and other 
forms of enterprise. 

Section 22. The term " State " means any State or Territory and 
the District of Columbia. 

Section 23. The term "Association " means Associated Cigar Man- 
ufacturers and Leaf Tobacco Dealers. 

Section 24. The term " Council " means National Tobacco Council, 
Inc., a New York Corporation, or such other agency as shall be desig- 
nated for the ])urposes of Schedule I, hereto attached, by the Code 
Authority hereby established and by the Code Authorities for the 
Wholesale Tobacco Trade and the Retail Tobacco Trade. 

Article III ^ — Hours 

Section 1. No clerical, accounting or other office employees shall 
be permitted to work in excess of forty (40) hours in any one week 
or eight (8) hours in any one day and no other employee shall be 
permitted to Avork more than forty (40) hours in any one week, 
except as follows: 

» Effective June 25, 1934. Sue paragraph 2 (4) of order approving Uiis Code. 



69 

(a) Executive, supervisory, technical anrl administrative em- 
ployees, provided that they receive regularly thirty-five dollars 
($J'5.00) per week or more. 

(b) Outside salesmen. 

(c) "Watchmen, ])rovided that no watchman shall he permitted to 
work in excess of fifty-six (50) hours in any one week. 

(d) Chauffeurs and deliverymen, provided that no such employee 
shall be permitted to work in excess of forty-eight (48) hours in any 
one week. 

(e) Firemen and engineers, provided that no such employees shall 
be permitted to work in excess of forty-four (44) hours in any one 
week. 

(f) Shipping department employees, provided tliat no such em- 
ployee shall be ])ermitted to work in excess of forty-four (44) hours 
in any one week or eight (8) hours in any one day unless i)aid at 
the rate of time and one-third for all time worked in excess thereof. 

(g) Productive emplo^^ees during two peak seasons per year, 
provided that the number of weeks and the number of hours per 
week in each season shall be determined by the Code Authority, 
subject to the approval of the Administrator. 

Section 2. No employee except watchmen, shall be permitted to 
W'ork more than six (6) days in any seven (7) day period. 

Section 3. The maximum hours fixed above shall not api:)ly to 
employees on emergency repair work, provided that any such em- 
ployee working in excess of eight (8) hours in any one day or forty- 
four (44) hours in any one week shall be compensated by at least 
time and one-third for all such excess time. 

Section 4. All time worked on Sundays and legal holidays, except 
by watchmen, engineers and firemen, shall be compensated at the 
rate of time and one-third. 

Arttcij: IV ' — Wages 

Section 1. No clerical, accounting or other office employee shall 
be paid at a rate of less than fifteen dollars ($15.00) per week of 
forty (40) hours. 

Section 2. No watchmen shall be paid at a rate of less than fifteen 
dollars ($15.00) per week of fifty-six (56) hours. 

Section 3. No stripper shall be paid at a rate of less than twenty- 
five cents (25(^) per hour provided that stripjiers that are classed 
as slow workers up to twenty-five percent (25%) of the total number 
of such workers, need not receive the minimum hourly rate herein 
specified, if (1) they are paid the same piece work rate as paid 
other employees of the same class and (2) they are paid at a rate 
of not less than twenty-two and one-half cents (2214^) per hour. 

Section 4. Unskilled labor in the South shall be paid at a ra,te 
of not less than twenty-five cents (25^) per hour. 

Section 5. No productive employee engaged in the production of 
stogies or hand made cigars to retail at not more than two for five 
cents shall be paid less than tw^enty-seven cents (27^') per hour and 
no machine cigar operator engaged in the production of cigars made 

' Effective June 25, 1934. See paragraph 2(4) of order approving this Code. 



70 

to retail at not more than two for five cents shall be paid less than 
twenty-nine cents (29^-) per hour. 

Section 6. No cigar maker in the Hand Made Industry, except as 
provided in Section 5, shall be paid at a rate of less than thirty 
cents (30f) per hour; excepting in the South in which no cigar 
maker in the Hand Made Industry shall be paid less than twenty- 
eight cents (280) per hour; provided, however, that cigar makers 
engaged in the production of cigars other than class A and B cigars 
shall be paid at a rate of not less than four cents (4^) per hour in 
addition to the rate established above. 

Section 7. No machine operator except as provided in Section 5 
shall be paid at a rate of less than thirty-four cents (34t') per hour 
excepting in the South, in which no machine cigar maker shall be 
paid less than thirty-two cents {'S2t) per hour. 

Section 8. No employee other than those for whom specific pro- 
vision is made in this Article shall be ])aid at a rate of less than 
tw^enty-eight cents (280) per hour. 

Section 9. Cigar makers in the Hand Cigar Manufacturing and 
Stogie Manufacturing Industry who are classed as slow workers, up 
to twenty-five precent (25%) of the total number of such workers, 
and machine cigar operators, up to ten percent (10%) of the total 
number of such workers, need not receive the minimum hourly rate 
herein specified, provided they shall be paid the same piece rate 
as paid other emjiloyees of the same class. 

Section 10. Upon application of any employer, at any time a 
higher rate of exemption for slow workers than is established in 
Section 9 of this Article may be established by the Code Authority 
with the approval of the Administrator. At any time after Septem- 
ber 1, 1934, a higher or lower rate of exemption may be established 
for any particular employer by the Code Authority, with the ap- 
proval of the Administrator, after such notice and opportunity to 
be heard as the Administrator may require. 

Section 11. x\ll piece rate shall be established so as to yield the 
minimum rates of pay provided in this Article and no piece rate 
shall be reduced in order to increase the actual number of slow 
workers employed by any manufacturer. 

Section 12. The wages of all employees now in excess of the 
minima herein established shall be equitably readjusted. 

Section 13. Where male and female employees perform substan- 
tially the same duties or do substantially the same work, they shall 
receive the same rate of pay. 

Article V — General Labor Provisions 

Section 1. Employees shall have the right to organize and bar- 
gain collectively through rej)resentatives of their own choosing, and 
shall be free from the interference, restraint, or coercion of employ- 
ers of labor, or tlieir agents, in the designation of such representa- 
tives or in self-organization or in other concerted activities for the 
purpose of collective bargaining or other mutual aid or protection. 

Section 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. 



71 

Section 8. Employers shall comply witli the iiiaximum liours of 
labor, minimum rates of pay and other conditions ol' employ nient, 
a])proved or prescribed by the President. 

Section 4. No person under the age of sixteen (ICi) years sliall be 
employed in the cif2:ar manufacturin<y industry. 

Section 5. No person under ei'2:hteen (18) years of a<:e shall work, 
or be permitted to work, at operations or occui)ations hazardous in 
nature or detrimental to health. The Code Authority shall submit 
to the Administrator Avithin sixty (GO) days after the efTcL'tive date 
of this Code, a list of sucli occujKitions for his approval. 

Section 6. Employers sh.all make i)ayment of all wa<!;es in lawful 
currency or by negotiable checks, payable on demand. All contracts 
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 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 b}^ this Code. 

Section 8. Employers shall not change the method of payment 
of employees' compensation or reclassify employees or duties of oc- 
cupations 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 cojnes of 
the provisions of this Cocle dealing with hours, wages and conditions 
of employment in conspicuous places of easy and continuous access 
to emploj^ees. 

Section 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 provisions shall be written in English and such other lan- 
guages as may be in general use throughout the establishment. 

Section 12. Every employer shall make reasonable provision for 
the safet}^ and health of his employees at the place and during the 
liours of their employment. 

Standards for safety and health shall be submitted by the Code 
Authority to the Administration within six (6) 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 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 when the contract is in writing and is kept on file by the em- 
ployer for six ((3) months after the termination of the contract and 



72 

which shall be kept open for the inspection of Government repre- 
sentatives. 

Section 14. At the expiration of nine (9) months after the effec- 
tive date of this Code, the industry shall petition the President or the 
Administrator to review the provisions of this Code relating to hours 
of labor and rates of pay. 

Article VI - — Cigak Merchandising Plan ^ 

The Merchandising Plan in Schedule I annexed hereto, adopted 
for the Wholesale Tobacco Trade and the Retail Tobacco Trade in 
their respective Codes of Fair Competition and hereinafter for con- 
venient reference in part repeated, 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 cigar manufac- 
turing industry are hereby made rules of fair practice and fair 
competition for all members of the cigar manufacturing industry. 

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 
Wholesale Tobacco Trade 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 mean- 
while withdrawn, thirty (30) days after notice of such election shall 
have been filed with the Administrator. 

Section 1. As to each of the cigars of his manufacture, each cigar 
manufacturer shall record with the Council the minimum sales price 
at which such cigar is intended to bs 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 terms to be allowed by 
him from the retail price in connection with the several respective 
classes of transaction described in subdivisions (a) to (d) inclusive 
of Section 2 of this Article VI. The retail price and, within the 
limits hereinafter prescribed, the discounts shall be subject to change 
at the discretion of the manufacturer, provided the revised price or 
discounts as the case may be, be recorded with the Council at least 
five (-5) days before the change becomes effective unless a shorter 
time he required hy a cigar manufacturer in order to meet a coni- 
fetitor'^s reduction of price which is not in violation of this mer- 
chandising plan^ The retail price shall be prominently marked on 
each container of cigars. 

Section 2. From the recorded retail price, each cigar manufac- 
turer shall, as to each of his cigars, grant discounts to be established 



2K(T('c(ivo .Tune 2.5. ]9.'?4. Sop parafjranh 2 (1) of order approviiip: this Oofle. 
' I'rovisions for filing of prices and discounts stayed until further ord 
paruKiapli 2 (."{) of order approvin>{ tins Code. 

♦Italicized words deleted. See paragraph 2(2) of order approving this Code 



orders. See 
:!ode. 



by him in his discretion within the limits hereinaftor in tliis Section 
2 prescribed, as follows: 

(a) In the case of sales, if ain', to retailers other than sales to 
chains of stores and other than (h'o}) shi])ment sales under subdi- 
vision (d) of this Section 2, a discount of not more than twenty- 
'u<,dit percent (287o). 

(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 subdivisicm (a), of not more than sixty-six and 
two-thirds percent (6G%%) 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 estab- 
lished 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, make 
drop shij)ments 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 be made 
only in quantities of not less than 2,000 cigars in the case of Class A 
and Class B cigars, and not less than 1,000 cigars in the case of 
Class C or higher classes. 

For such sales or drop shipments, there shall be established a dis- 
count for the drop shipment purchaser, in addition to the discount 
which shall have been established by the manufacturer under sub- 
division (a), of not more than five percent (5%), and this discount 
shall be allowed by the manufacturer or jobber, whichever shall 
make the billinc. 

The cigar manufacturer may in connection with each drop ship- 
ment 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 jiercent (14%) set forth in subdivision (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 prescribed, the amount of discounts 
on each such sale. 

On each transaction in any of the categories (a) to (d) inclusive 
above described, the ci^jar manufacturer may allow a further dis- 
count of two percent (2%) for cash within his established credit 
terms. 



74 

Nothin<T herein contained shall prevent any cigar manufacturer 
from establishing within the maximum percentage lim.its herein- 
above 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 
manufacturer; but each cigar manufacturer shall apply his estab- 
lished 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 an}- 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 con- 
sumers except in accordance with the provisions of this merchan- 
dising 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 con- 
ditioned upon the purchase of a product. 

Section 5. All sales by manufacturers shall be evidenced by 
itemized invoices showing the retail price and the discounts granted 
therefrom. 

Section 6. Upon the recommendation of the Code Authority 
established by this Code or the Code for the Wholesale Tobacco 
Trade or the Code for the Retail Tobacco Trade or upon applica- 
tion of any member of the Cigar INIanufacturing Industry or of 
the Wholesale Tobacco Trade or of the Retail Tobacco Trade and 
the approval of such recommendation or application by the Admin- 
istrator, 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 dis- 
counts to be prescribed in connection with sales of cigars bv any 
member of the Industry, and such determination shall be effective 
only u]^on the concurrence of all three Code Authorities and, sub- 
ject to the further approval of the Administrator, such mininuim dis- 
counts shall be binding upon all members of the Industry. 

Section 7. Wlierever any of the provisions of this merchandising 
plan provide for two or more discounts from the retail price, such 
discounts shall be computed 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 8. Nothing in this merchandising plan shall be construed 
to prevent the free and general distribution of articles commonly 
used for advertising pur])oses or premiums, except insofar as such 
distribution and use of premiums would constitute, in effect, an addi- 
tional discount or a reduction in price below the minima established 
hereby. 

Section 9. All prices and discounts filed with the Council by 
manufacturers, jobbers or sub-jobbers, as hereinbefore provided shall 



/J 

immediately be reported by tlie Council to the res])ective Code Au- 
thorities for the Cigar Manufacturing; Industry, The Wholesale To- 
bacco Trade and the Ketail Tobacco Trade. Ea(;h 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 re<:ulati()ns which may be issued by such Code Authority 
with the approval of the Administrator as to the publication and 
dissemination thereof. 

Article VII — Trade Practices 

Section 1. Fahe Adverf/'filnr/. — The making or causing or per- 
mitting to be made or published of any false, untrue or deceptive 
statement by way of advertising or otherwise concerning the grade, 
(luality, quantity, substance, character, nature, origin, size or ])repa- 
ration of any product of the trade, having the tendency and capacity 
to mislead or deceive purchasers or prospective purchasers and the 
tendency injuriously to atfect the business of competitors, is pro- 
hibited as an unfair method of competition. 

Section 2. Deceptfve Branding. — The infringement of established 
trade-marks and the use of trade-marks or trade names which will 
result in deception of the public or enable dealers to perfect such 
deception is prohibited as an unfair method of competition. 

Section 3. Fahe 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. Inaccurate Lahelling. — No member of the industry 
shall brand or mark or pack any cigar and/or cigars in any manner 
wdiich is intended to or does deceive or mislead purchasers with 
respect to brands, grade, quality, quantity, origin, size, substance, 
character, nature, material content, or preparation of such cigar 
and/or cigars. 

Section 5. Inaccurate References to Competitors, Etc. — No mem- 
ber of the industry shall publish advertising which refers inac- 
curately in any material particular to any competitors or their goods, 
prices, values, credit terms, policies or services. 

Section 6. Threats of Laan Suits. — No member of tlie industry 
shall })ublish or circulate unjustified or unwarranted threats of legal 
proceedings which tend to or have the eifect of harassing competitors 
or intimidating their customers. Failure to prosecute in due course 
shall be evidence that an^r such threat is unwarranted or unjustified. 

Section 7. Brihimg Employees. — No member of the industry 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, Avithout the knowledge of such em- 
ployer, principal or party. This provision shall not be construed to 
prohibit free and general distribution of articles commonly used for 
advertising except so far as such articles are actually usecl for com- 
mercial bribery as hereinabove defined. 

Section 8. Coercion. — No member of the industry shall require 
that a purchase of any tobacco jiroducts or other goods l>e a pre- 
requisite to the purchase of any other tobacco products. 



76 

Section 9. No member of the industry shall distribute any cigars 
or stogies, produced by employees paid at the wage rates prescribed 
in Article IV, Section 5 of this Code, unless such cigars or stogies 
are packed in containers clearly marked to indicate to the consumer 
that the cigars or stogies contained therein are intended to sell at 
retail, at not more than two (2) for five (5) cents. 

Article VIII — Organization, Powers and Duties of the Code 

Authority 

organization and constitution 

Section 1. There shall forthwith be constituted a Code Authority 
ccmsisting of not more than thirteen (13) members to be selected as 
follows : 

Six (6) members, three (3) of whom shall represent machine cigar 
manufacturers and three (3) of whom shall represent hand cigar 
manufacturers, selected by the manufacturers who are members of 
the Associated Cigar Manufacturers and Leaf Tobacco Dealers. 

Two (2) members, one of whom shall be appointed by the Labor 
Advisory Board and one of whom shall be appointed by the Con- 
sumers Advisory Board of the National Kecovery Administration. 

Two (2) members, one of whom shall represent machine cigar 
manufacturers and one of whom shall represent hand cigar manufac- 
turers, selected by and from non-members of the foregoing Associa- 
tion. Within fifteen (15) days after the effective date hereof the 
other members of the Code Authority shall submit to the Adminis- 
trator a plan for the selection of said two (2) members which, upon 
his approval, shall become effective. 

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 restrictions on 
membership, and (2) submit to the Administrator true copies of its 
articles of association, by-laws, regulations, and any amendments 
when made thereto, together with such other information as to 
membership, organization, and activities as the Administrator may 
deem necessary to effectuate the purposes of the Act. 

Section 4. In order that the (Tode 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 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 em- 
ployee of the Co<ie Authority. Nor shall any member of the Code 



77 

Authority exercising reasonable Jilij^encc in the conduct of liis duties 
hereunder, be liable to anyone for any action or (^mission to act 
under tliis Code, except for his own willful misfeasance or non- 
feasance. 

Section G. If the Administrator shall at any time determine that 
any action of the Code Authority or any agency thereof may bs 
unfair or unjust or contrary to the public interest, the Administrator 
may retjuire that such action be susjjended to alFord 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 api)roves or unless 
he shall fail to disapprove after thirty {'M) days' notice to him of 
intention to proceed with such action in its original or modified 
form. 

POWEKS 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 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 Au- 
thority, members of the industry subject to this Code shall furnish 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act to such 
Federal and State agencies as he may designate; provided that 
nothing in this Code shall relieve any member of the industry of any 
existing obligations to furnish reports to any Government agency. 
No individual report shall be disclosed to any other member of the 
industry or any other party except to such other Governmental 
agencies as may be directed by the Administrator. 

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

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

(f) (1) It being found necessary to sui)port the administration of 
this Code, in order to etfectuate the policy of the Act and to maintain 
the standards of fair competition established hereunder, the Code 
Authority is authorized : 

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



78 

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

(c) After such budget and basis of contribution have been 
approved by the Administrator, to determine and collect equit- 
able 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 shall be liable for his or its 
equitable contribution to the expenses of the maintenance of the 
Code Authority as hereinabove provided. Onl}- 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 activ- 
ities 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 industry who 
are complying with this Code. 

(h) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade ])ractice provisions 
to govern members of the industry in their relations with each other 
cr with other industries; measui-es 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 sj)ecify. 

(i) To appoint a Trade Practice Committee which shall meet with 
the Trade Practice Committees appointed under such other codes as 
may be related to the industry for the purpose of formulating fair 
trade practices to govern the relationships between employers under 
this Code and 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 other codes. 

(j) To })rovide 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 determination. 

Section 8. Any member of the industry 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 
members of the industry ; and the Code Authority may, after in- 
vestigation, recommend to the Administrator that change be made 
in the Labor Provisions of this Code, and upon approval by the 
Administrator, after such notice and hearing as he may sjoecif}', 
such new provisions shall become effective for that member of the 
industry. 

Section 0. Whenever any question may arise under this Code as to 
the consti'uction and meaning of any portion thereof, the Code 
Autliority may issue such interpivtations as may be necessary to 
effectuate tlie oj^eration of and compliance with the policy of tho 
Act, subject at all times to the approval of the Administrator and 
such interpretations approved by the Administrator shall become 
operative as a part of this Code. 



79 

Section 10. No provision of this Code sliall deny to any member 
of the industry or to any party in any proceediniij the ri<Tfht to 
appeal to the Athninistrator nor prevent, at any time, direct appeal 
to liim fi-oni any determination of the Code Authoi'ity. The Code 
Authority may, if it chooses, invoke the procedure provided for in 
this Section. 

Article IX — Modification 

Section 1. This Code and all the ])i'ovisions thereof are ex])ressly 
made subject to the rioht 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 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 chancres in circum- 
stances, such modifications to be based upon application to the Ad- 
ministrator and such notice and hearing as he shall specify and to 
become effective on approval of the Administrator. 

Article X — Monopolies, Etc. 

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

Article XI 

The provisions of this Code shall not apply to the Territory of 
Puerto Rico, but its provisions shall apply to the marketing of 
Puerto Eican cigars, by the manufacturers thereof, in the United 
States. 

Article XII — Effective Date 

This Code shall become effective on the date specified by the 
President in his order of approval. 

Approved Code No. 467. 
Registry No. 1615-13. 



SCHEDULE I' 

Cigar Mebchandising Plan ' 

a. sales by cigar manufacturers 

Section 1. As to each of the cigars of his manufacture, each cigar manu- 
facturer shall record with the Council the minimum sales price at which such 
cigar is intended to he sohl 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 " sliall constitute the basis for com- 
puting the discounts and terms for all dealers as hereinafter provided; and 
shall also record with the Council the discounts and credit terms to be allowed 
by him from the retail price in connection with the several respective classes 
of transaction described in subdivisions (a) to (d) inclusive of Section 2 of this 
Division A. The retail price and, vrithin the limits hereinafter prescribed, the 
discounts shall be subject to change at the discretion of the manufacturer, pro- 
vided the revised price or discounts as the case may be, be recorded with the 
Council ut least five (5) days before the change beromis effective unless a 
ithorter time he required hy a cigar inanufncturer in order to meet a com- 
petitor's reduction of price wh<ich is not in violation of this merchandising 
plaii.^ 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 disccunts to be established by him in his discretion 
within the limits hereinafter in this Section 2 prescril)cd. as follows : 

(a) In the case of sales, if any. to retailers other than sales to chains of 
stores and other than drop sliipme::t sales under subdivision (,d) of tliis 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 miinutacturer 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 jobbers 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, make drop shipments to 
retailers or sub-jobbers, provided the accredited cigar joliber agrees to or 
requests such shii)n)ents; in a territory where the cigar manufacturer has no 
accredited cigar jobber, the cigar manufacturer may, in his discretion, make 
drop siiipments to retailers. Provided that in either case shipments shall be 
made only in quantities of not less than 2.000 cigars in the case of Class A 
and Class B cigars, and not less than 1,000 cigars in the case of Class C or 
higher classes. 

For such sales or drop siiipments, there shall be established a discount for 
the drop shipnieiit pnrcbasei-. in additi( n to the discount which shall ha\e 
l)cen established by the manufacturer under subdivision (a), of not more than 
five percent (5% ), and this discount sliall be allowed by the manufactu''er or 
jobI)c'r, whichever shall make the billing. 



2 Efff'ptive Juno 25. im4. Spo paraRraph 2 (1) of order approving this Code. 
" I'rovisioiiH for (iliiit; of prices and discounts stayed until furtlier crders. See 
para^rapli 2 (.'!) of order approving tliis Code. 

* ItaHcized words deleted. See paragraph 2 (2) of order approving this Code. 

(80) 



81 

The cigar iiiiuiufactiirt<r may in conncetion with oacli drop shipment sale 
allow to the accredited cijiar johber wlio has requested or consented to such 
sale a service credit. Provided, that tlie total of the service credit and the dis- 
count allowed to the drop sliipment purchaser and the accredited cif,'ar jobber 
shall not exceed the fourteen percent (14%) set forth in subdivision (b) above. 

(e) In the case of sales to chains of stores, discounts not cxccedinj^ the dis- 
counts which the manuracturer shall ha\e established for his sales t() accredited 
cigar jobbers under subdi\ision (b), provided, however, tliat each cigar manu- 
facturer may determine in his own discretion to which chains, if any, he will 
make direct sales and, within the limits hereinabove prescribed, the amount of 
discounts on each such sale. 

On each transaction in any of the categories (a) to (d) inclusive above de- 
scribed, the cigar manufacturer may allow 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 limits h(>reinabove prescribed a differ- 
ent schedule of discounts with resi)ect 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 manufacturer; but each cigar manufacturer shall apply his 
established system of discounts uniformly as to each of the classes of trans- 
actions 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 unifoi'm and may vary in each individual case. 

Section 3. No manufacturer shall .sell cigars at retail to con.sumers except 
in accordance with the provisions of this merchandising plan relating to sales 
by retailers; but the provisions of this merchandising plan shall not api)ly to 
any cigar manufacturer who sells exclusively and directly to the consumer. 

yECTioN 4. No manufacturer shall otfer 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 purchase of a 
product. 

Section 5. All sales by manufacturers shall be evidenced by itemized invoices 
shoM'ing the retail price and the discounts granted therefrom. 

B. SALES BY JOBBERS AND SUBJOBBERS 

Section 1. Each jobber shall record with the Council the discounts and credit 
terms (not exceeding the discounts which such jobb'er shall have received from 
the manufacturer) to be allowed by the jobber from the retail price in connec- 
tion with all resales of cigars which in 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 with the Council nt 
least three days before the change becomes effective unless a shorter time be 
required in order to meet a competitor's reduction of price tchich 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 subjobbers and there 
shall in no case be any individual variation or variati<ms fnmi the discount or 
discounts so established. 

Section 2. Each jcbber 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 dai/s before the change becomes effective unless a shorter time be required 
in order to meet a competitor's reduction of price irhivh is not in violation of 
this merchandising plan;* and the discounts so recorded shall, so long as effec- 
tive, apply to all such resales to retailers and there shall in no case he 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. 



* Italicized words deleted. See paragraph 2 (2) of ordi-r approving this Code. 



82 

Section 4. Nothing in this Division B contained shall affect or modify the 
provisions above set forth in Division A in relation to drop shipment sales. 

Seiction 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 mercliandising plan relating to sales by retailers. 

C. SALES BY KETAILERS 

Section 1. In the case of all cigars purchased by retailers from cigar manu- 
facturers, jobbers or sub-jobbers in connection with which a retail pricie shall 
have been recorded by the manufacturer as hereinabove provided, the retailer 
shall sell such cigars at retail at not less tlian 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 of twenty- 
five (25) cigars or moi-e 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 ten pads per 
box of fifty (50) cigars sold. In the case of any retailer granting a cash dis- 
count upon all purchases made, any sales of cigars shall be excluded in com- 
puting 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 addetl 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 clearance 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 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 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 pro- 
vided wlierever under any of the provisions of this merchandising plan any 
cigar is 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 
allowances whether in the form of money or otherwise ; nor sliall any retailer 
offer or extend special service or privilege to any customer which is not 
available to all customers. 

D. minimum discounts 

Upon the recommendation of the Code Authority established by the Code 
for tlic Cigar Manufacturing Industry or the Code for the "Wholesale Tobacco 
Trade or the Code for the Retail Tobacco Trade or upon aiiplication of any 
member of the Cigar Manufacturing Industry or of the Wholesale Tobacco 
Trade or of the Ketail Tcibacco Trade and the a]ii)roval of such recommenda- 
tion or application by the Administrator, tlie Code Authorities established by 
the said several codes, shall, upon such notice and opportunity to be beard, 
if any, as the Administrator may require, determine by joint action miniminn 
discounts to be 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 



83 

approval of tlio Aflministraior, such iiiiniiiium (lisconnts shall be bindiii;^ upon! 
all such mom])ers. 

E. PROVISIONS APPIJCAI5LE TO ALL SALES OF CIGARS 

Section 1. Wherevor any of the provisions of this iiU'rchaiulisins plan pro- 
vidt> for two or more discounts from the r(4ail price, such discounts shall lie 
computed separately and successively so that each succeedinj^ disc<iunt shall 
be computed upon the balanc(> of the retail price remaining after the deduction 
of the next preceding discount provided for. 

Section 2. Any change in the retail iirice shall he applicable as at the effective 
date of such change to all merchandise thereafter sold by wlmUvsale distrib- 
utors, or retailers, but wholesale distributors may, notwithstanding any reduc- 
tion of the retail price, dispose of existing stocks on the basis (»f the retail 
price prevailing when such stocks were acquired. 

Section 3. Nothing in this merchandising plan shall b? construed to prevent 
the free and general distribution of articles connnonly used for advertising 
purposes and premiums, except insofar as such distribution or use of 
premiums would constitute, in effect, an additional di.scount or a reduction iu 
price below the minima established hereby. 

Skction 4. All prices and discounts tiled 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 Maiuifacturing 
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. 468 
CODE OF FAIR COMPETITION 

FOR THE 

MALT PRODUCTS INDUSTRY 

As Approved on June 22, 1934 



OKDER 



Approving Code of Fair Competition' for the Malt Products 

Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Malt Products Industry, and hearings 
having been duly held tliereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 
dir^ctGcl to tliG i rGsiQorit * 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery, 
Approval recommended : 
Armin W. Riley, 

Division Administrator. 
Washington, D.C, 

June ££, 1934. 

69353° 657—134 34 1 ^§5) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on the Code of Fair Competition for the ISIalt 
Products Industry of the United States. On April 27, 1934, a Public 
Hearing was held at the Mayflower Hotel. Washington, D.C, pur- 
suant to notice of hearing signed by the Administrator of the Na- 
tional Recovery Administration under Executive Order of June 26, 
1933. By Executive Order of January 8, 1934, the jurisdiction over 
this Code was transferred to the National Recovery Administration. 
Several conferences were held with proponents of this Code by repre- 
sentatives prior to the transfer of this jurisdiction. An additional 
conference was held before the Public Hearing. Since the hearing 
changes have been made in the proposed Code to have it conform with 
N.R.A. policy. 

THE INDUSTRY 

The Deputy Administrator advises that the Malt Products Indus- 
try has been greatly reduced since legalization of beer, because a 
number of members of this Industry have entered or re-entered the 
Brewing Industry. There were approximately forty (40) firms 
producing malt products in 1932 and now there are but nineteen (19) 
active concerns. It is believed, however, that the present production 
will be maintained because of the continued demands from producers 
of food supplies, pharmaceutical supplies and many of the smaller 
breweries. It is estimated that in 1929 the sales amounted to $20,000,- 
000 and in 1932 sajes rose to $24,000,000. 

It is a highly unionized Industry. In June 1929 there were approx- 
imately 987 persons employed in this Industry, and in June 1933 this 
number had been increased to approximately 2013. The average 
hours worked in 1929 were forty-six and two-tenths (46.2) and m 
1933 were forty-five and four-tenths (45.4). The average weekly 
salary in 1929 was thirty- two dollars and forty cents ($32.40) and in 
1933 was twenty-eight dollars and four cents ($28.04), with an 
average hourly wage of sixty-nine and seven-tenths cents (69.7^) in 
1929 and sixty-two and six-tenths cents (62.6^) in 1933, 

PROVISIONS or THE CODE 

The Code for the Malt Products Industry provides for a maximum 
work week of forty (40) hours with a limitation of eight (8) hours 
per day and six (6) days in each seven (7) day period. Exceptions 
are granted in the cases of executives, supervisors, technical and 
admmistrative employees who regularly receive not less than thirty- 
five dollars ($35.00) per week, also junior technical men who are paid 
not less than twenty-five dollars ($25.00) per week. Those so classi- 

(8G) 



87 

fied shall not constitute more than two per cent (2%) of the total 
number of employees. Each plant shall be entitled to at least one 
employee so classified. The trme limited to such employees in this 
classification and at this rate is one j^ear. Watchmen may work 
fifty-six (5G) hours per week, and are to be paid twenty dollars 
($20.00) per week. It also is provided that a watchman employed 
on an hourly basis shall receive not less than forty-five cents (45^) 
per hour and shall not be permitted to work in excess of seventy (70) 
hours in any one week. 

Delivery drivers and helpers are to be paid at least time and one- 
half for all hours worked in excess of forty (40) hours in any week 
and. eight (8) hours in any day. 

Route salesmen who regularly receive not less than thirty dollars 
($30.00) per week in cities of 100,000 population or over, and not 
less than twenty-five dollars ($25.00) per week in other places, are 
exempt from hours. 

Route salesmen who earn less than the amounts stipulated above 
shall not be permitted to work in excess of forty-eight (48) hours in 
any Aveek. 

Engineers and firemen are permitted to work a maximum of forty- 
four (44) hours in any week, provided they are paid at the rate of 
time and one-half for all hours worked m excess of forty (40). 
Employees on emergency maintenance or emergency repair work are 
exempt from the maximum hours but in all such special cases shall 
be paid at least time and one-half for overtime. Emergency hours 
worked shall be reported monthly to the Code Authorit3\ 

The minimum wages are set at eighteen dollars ($18.00) per week 
which is based upon the hourly rate of forty-five cents (45^) with a 
forty cent (40?*,) hourly rate for female employees engaged in light 
work such as mail handling, packaging, w^-apping, labeling, inspect- 
ing, making and repairing filter cloths and other sewing. The mini- 
mum rate established for office employees is sixteen dollars ($16.00) 
per week with a two dollar ($2.00) differential provided for office 
boys and/or office girls and messengers. 

There is no geographic wage differential in this Code. 

The Industry is highly competitive but is well organized and it is 
believed the fair trade joractices included in the Code will definitely 
prevent unfair competitive practices. 

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 of 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 practices, by promoting the full- 
est possible utilization of the restriction of production (except as 
may be temporarily required), and by increasing the consumption 
of industrial and agricultural products through increasing purchas- 



88 

ing -power, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

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

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the National Malt 
Products Manufacturers' Association is an industrial association 
truly representative of the aforesaid Industry; and that said asso- 
ciation imposes no inequitable restrictions on admission to member- 
ship therein. 

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

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

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

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

Hugh S. Johnson", 

A dminis trator, 
June 22, 1934. 



CODE OF FAIK COMPETITION FOR THE MALT 
PRODUCTS 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 
Malt Products Industry, and its provisions shall be the standards of 
fair competition for such Industry and shall be binding upon each 
member thereof. 

Article II — Definitions 

Section 1. As used in this Code : 

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

(b) The term " Malt Products Industry ", and " Industry " mean 
the manufacture and sale by the manufacturer of unfermented prod- 
ucts, in liquid, syrup, or dry form, obtained from an infusion of 
malted grains, or of malted grains and other starchy materials. 

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

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

(e) The term " employer " as used herein, means any person by 
whom any such employee is compensated or employed. 

(f ) The term " Code Authority " as used herein means the Indus- 
try authority established under Section 1 of Article VI of this Code. 

(g) The term " Outside Salesmen " as used herein shall mean 
salesmen working at least eighty per cent (80%) of their working 
hours outside of the establishment of the employer, and who do not 
deliver merchandise. 

(h) The term " Route Salesmen " as used herein shall mean em- 
ployees who carry and sell malt products on regularly established 
routes, making delivery at the time of sale from the stock so carried. 

(i) The term "Watchmen" includes employees ninety per cent 
(90%) of whose time is engaged in watching and guarding the 
premises and property of the establishment. 

Article III — Hours 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in an}'^ one week or eight (8) hours in any one day 

(89) 



90 

or six (6) days in any seven (7) day period, with tlie following 
exceptions : 

(a) Executive, supervisory, technical and administrative em- 
ployees, provided that they receive regularly thirty-five dollars 
($35,00) per week or more, and outside salesmen. 

(b) Junior technical men who are paid not less than twenty-five 
dollars ($25.00) per week, provided that employees so classified shall 
not constitute more than two per cent (2%) of the total number of 
employees and provided further that each plant shall be entitled to 
at least one employee so classified. Such employees shall be limited 
to one year in this classification. 

(c) Watchmen, provided however, that thej shall not be per- 
mitted to work more than fifty-six (56) hours in any week and shall 
receive at least twenty dollars ($20,00) weekly, provided however, 
that a watchman employed on an hourly basis shall receive not less 
than forty-five cents (450) per hour and shall not be permitted to 
work in excess of seventy (70) hours in any one week. 

(d) Delivery drivers and helpers, provided they are paid at least 
time and one-half for all hours worked in excess of forty (40) hours 
in any week and eight (8) hours in any day. 

(e) Route Salesmen provided they regularly receive not less than 
thirty dollars ($30,00) per week in cities of 100,000 population or 
over, and not less than twenty-five dollars ($25.00) per week in other 
places. Eoute Salesmen who earn less than the amounts stipulated 
above shall not be permitted to work in excess of forty-eight (48) 
hours in any week. 

(f ) Engineers and firemen may be permitted to work a maximum 
of forty-four (44) hours in any week provided they are paid at the 
rate of time and one-half for all hours worked in excess of forty 

(40). 

Section 2. The maximum hours fixed in the foregoing sections 
ehall not apply to any employee on emergency maintenance or 
emergency repair work involving break-downs or protection of life 
or property, but in all such special cases at least time and one-half 
shall be paid. Emergency hours worked shall be rejDorted monthly 
to the Code Authority. 

Section 3. No emploj^er shall knowingly permit any employee to 
work for any time which, when totalled with that performed with 
another employer or employers exceeds the maximum permitted 

Article IV — Wages 

Section 1. No clerical, accounting, or other office employee shall 
be paid less than at a rate of sixteen dollars ($16.00) in any week, 
except that office boys and/or office girls and messengers may be 
employed at a reduced rate but not less than fourteen dollars ($14.00) 
in any week, provided, however, that where more than one employee 
is compensated at the lower minimum rate not more than ten per 
cent (10%) of the total number of office employees shall be so 
compensated. 

Section 2. Female employees engaged in light work, such as mail 
handling, packaging, wrapping, labeling, inspecting, making and 
repairing filter cloths and other sewing, shall be paid in any pay 
period not less than at the rate of forty cents (40^) per hour. 



91 

Section 3. No employee other than those covered in Sections 1 and 
2 abeve shall be paid less than at a rate of eighteen dollars ($18.00) 
in any week. 

Section 4. This Code establishes minimum rates of pay regardless 
of Avhcther the employee is compensated on the basis of time rate, 
or piecework, or any other basis. 

Section 5. Equitable adjustments above the minimum in the pay 
schedules of all emploj'ees shall be made within thirty (30) days 
after the approval of this Code by any member of the Industry who 
has not heretofore made such adjustments subsequent to July 15, 
1933. The Code Authorit}^ shall cletermine the fact of equitable ad- 
justments by all members of the Industry and shall submit its find- 
ings to the Administrator for his approval. In no case shall full 
time weekly wages be reduced as a result of the adoption of this 
Code. 

Section 6. Female employees performing substantially the same 
work as male employees shall be paid at the same rate of pay as 
male employees; provided, however, that the wage rate for night 
work shall not govern the wage rate for employees performing 
substantially the same work in the daytime. 

Section 7. A person whose earning capacity is limited because of 
age or ph3'sical 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 cer- 
tificate. Each employer shall file monthly with the Code Authority 
a list of all such persons employed by him, showing the wages paid 
to, and the maximum hours of work for such employee. 

Article V. — General Labor PR0^^SI0NS 

Section 1. It is hereby provided : 

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

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

(c) That employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of emploj'nient 
approved or prescribed by the President. 

Section 2. On and after the effective date of this Code, no person 
under sixteen (16) years of age shall be employed in the Industry. 
No person under eighteen (18) years of age shall be employed at 
operations or occupations which are hazardous in nature or dan- 
gerous to health. The Code Authority shall submit to the Admin- 
istrator before July 1, 1934, a list of such operations or occupations. 



92 

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

Section 4. Wages shall be exempt from any charges and/or deduc- 
tions except with the written consent of the employee or pursuant 
to court order, or unless required by law. . 

Section 5. Employers shall not change the method of payment of 
compensation, or reclassify employees or duties or occupations per- 
formed by employees, or discharge employees to reemploy them at 
lower rates, or engage in any subterfm^e, so as to defeat the purpose 
of the Act or the provisions of this Code. 

Section 6. Each employer shall post in a conspicuous place of 
easy and continuous access to employees the Articles dealing with 
hours, wages, and general labor provisions of this Code, and shall 
further comply with such posting, rules and regulations as are from 
time to time issued by the Administrator. 

Section 7. Every employer shall make reasonable provision for 
the safety and health of his employees at the place and during the 
hours of their employment. Standards for safety and health shall 
be submitted by the Code Authority to the Administrator within six 
(6) months after the effective date of this Code. 

Article VI — Administration 

ORGANIZATION AND CONSTITUTION 

Section 1. There shall forthwith be constituted a Code Authority 
consisting of five (5) persons selected in the following manner: 

(a) Four (4) members shall be selected by and represent members 
of the Industry who are members of the National Malt Products 
Manufacturers' Association. 

(b) The fifth member shall be elected by and represent members 
of the Industry who are not members of the National Malt Products 
Manufacturers' Association, at a convention or meeting called for 
that purpose by the Secretary of the Association. All ascertainable 
members of the Industry who are non-members of the Association 
shall be notified by registered mail or telegram of the time and place 
of such convention or meeting and shall be further notified that vot- 
ing may be in person, by mail, or by proxy. If such fifth member 
of the Code Authority is not elected within twenty (20) days after 
the approval of this Code he may be appointed by the Administrator 
until elected pursuant to this section. Voting for the fifth member of 
the Code Authority shall be on a unit basis. 

(c) In addition to the above five (5) members, the Administrator 
may appoint not more than three (3) members to serve without vote. 

Section 2. The members of the Code Authority, and the fact that 
such members have been elected pursuant to this Article, shall be 
certified to the Administrator by the Secretary of the National Malt 
Products Manufacturers' Association. 

Section 3. Each member of the Code Authonty shall be entitled 
to designate an alternate from the Industry to act for him in his 
place and stead, such alternate to be certified to the Administrator 



93 

by the Secretary of the National Malt Products Manufacturers* 
Association. 

Section 4. Vacancies in the membership of the Code Authority 
shall bo filled by the selection of a person in the same manner as 
that of the member whose retirement has caused the vacancy. 

Section 5. Each trade or industrial association directly or indi- 
rectl}'' participating in the selection or activities of the Code Au- 
thoritj' shall (1) impose no inequitable restrictions on membership, 
and (2) submit to the Administrator true copies of its articles or 
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 neces- 
sary to effectuate the purposes of the Act. 

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

Section 7. If the Administrator shall at any time determine that 
any action of a Code Authority or any agency thereof may be unfair 
or unjust or contrary to the public interest, the Administrator may 
require that such action be suspended to afford an opportunity for 
investigation of the merits of such action and further consideration 
by such Code Authority or agency pending final action which shall 
not be effective unless the Administrator approves or unless he shall 
fail to disapproved after thirty (30) days notice to him of intention 
to proceed with such action in its original or modified form. 

Section 8. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner 
to anyone for any act of any other member, officer, agent, or em- 
ployee of the Code Authority. Nor shall any member of the Code 
Authority, exercising reasonable diligence in the conduct of his 
duties hereunder, be liable to anyone for any action or omission to 
act under this Code, except for his own willful malfeasance or 
nonfeasance. 

POWERS AND duties 

The Code Authority shall have the following powers and duties, 
in addition to those authorized by other provisions of this Code 
subject to such rules and regulations 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. 

^b) To adopt bylaws and rules and regulations for its procedure. 

(c) To obtain from members of the Industry such information 
and reports as are required for the administration of the Code. 
In addition to information required to be submitted to the Code 
Authority, members of the Industry subject to this Code shall fur- 



94 

nish such statistical information as the Administrator may deem 
necessary for the purposes recited in Section 3 (a) of the Act to 
such federal and state agencies as he may designate: provided that 
nothing in this Code sliall relieve any member of tne Industry of 
any existing obligations to furnish reports to any government 
agency. No individual report shall be disclosed to any other mem- 
ber of the Industry or any other party except to such other 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 Author- 
ity of its duties or responsibilities under this Code and that such 
trade associations and agencies shall at all times be subject to and 
comply with the provisions hereof. 

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

(f ) 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 hereunder and to effectuate the policy of the Act, 
the Code Authority is autliorized : 

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

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

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

2. Each member of the Industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Author- 
ity, determined as hereinabove provided, and subject to rules and 
regulations pertaining thereto, issued by the Administrator. Only 
members of the Industry complying with the Code and contributing 
to the expenses of its administration as hereinabove provided, shall 
be entitled to participate in the selection of members of the Code 
Authority or to receive the benefits of any 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 tlie amount thereof as estimated in its approved budget, 
except upon approval of the Administrator ; and no subsequent bud- 
get shall contain any deficiency item for expenditures in excess of 
prior budget estimates except those which the Administrator shall 
have so approved. 



95 

(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 
stabilization of emplo3'ment; and including modifications of this 
Code which shall become effective as part hereof upon approval by 
the Administrator after such notice and hearing as he may specif3^ 

(h) To appoint a Trade Practice Committee w^hich 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- 
ployers under this Code and under such other Codes to the end that 
bucli 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. 

Ahticle VII — Unfair Methods or Competition 

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 particu- 
lar, nor shall any member in any way misrepresent any goods 
(including but without limitation its trade-mark, grade, quality, 
quantity, origin, material, content or preparation) or credit terms, 
values, policies, services, or the nature or form of the business 
conducted. 

2. Inaccurate LaheUng. — 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, quality, 
quantity, grade, size, origin, or material content of such goods. 

3. Inaccurate References to Competitors. — No member of the In- 
dustry shall make any statements which refer inaccurately in any 
material particular to any competitors, their goods, values, prices, 
credit terms, policies, or services. 

4. C onvmercial Bribery. — 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 business of the 
employer of such employee, the principal of such agent or the repre- 
sented party, without the knowledge of such employer, principal, or 
party. This provision shall not be construed to prohibit free and 
general distribution of articles commonly used for advertising except 
so far as such articles are actually used for commercial bribery as 
hereinabove defined. 

5. Interference with Aiwt1icr''s Controjcts. — No member of the 
Industry shall wilfully induce or attempt to induce the breach of an 
existing contract between a competitor and his employee or customer 
or source of supply; nor shall any such member interfere with or 
obstruct the performance of such contractual duties or services. 



96 

6. Ofen 'prices. — The Code Authority may from time to time de- 
termine an open or posted price plan of selling such product or prod- 
ucts of the Industry as it shall specify, with the approval of the 
Administrator and subject to such notice and hearing as he may 
specify. 

7. No sale of products of the Industry for which postmg is re- 
quired shall be made by any member of the Industry except in 
accordance with its prices and terms so posted and in effect. 

8. Invoices for All Sales.— The making of any sale or delivery, 
except for sample purposes, without a written invoice or memoran- 
dum thereof is prohibited. 

9. Secret Rebates.— {?i) No member of the Industry shall secretly 
offer or make any payment or allowance of a rebate, refund, commis- 
sion, credit, unearned discount, or excess allowance, whether in the 
form of money or otherwise; (b) nor secretly offer or extend to any 
buyer any special service or privilege not extended to all buyers of 
the same class for the purpose of influencing a sale. 

10. False Billing. — The posting or publishing of any false or ficti- 
tious price list, or the use of invoices which falsely indicate prices, 
discounts or terms of any sale, or the inserting of any invoice oi 
statements which make the invoice a false record, wholly or in part, 
of the transactions represented on the face thereof, or the with- 
holding from any invoice of statements which properly should be 
included therein, so that, in the absence of such statements, the 
invoice does not truly reflect the transaction involvetl, is prohibited. 

11. Gorfhyulsory Purchase. — No member of the Industry shall com- 
pel the purchase of one product in order to purchase or obtain 
another. 

12. Unfair Substitution. — No member of the Industry shall sub- 
stitute without due notice and consent of a trade buyer another 
product for that ordered. 

Article VIII — Modification 

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

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

Article IX — ExroRT Trade 

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



97 

Article X — Monopolies, Etc. 

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

Article XI — Effective Date 

Section 1. This Code shall become effective on the first Monday 
following the tenth day after its approval by the President. 



Approved Cude No. 468. 
Registry No. 130-06. 



O 



Approved Code No. 469 
CODE OF FAIR COMPETITION 

FOR THE 

SULPHONATED OIL MANUFACTURING INDUSTRY 
As Approved on June 26, 1934 



ORDER 

Code of Fair Competition for the Sulphonated Oil Manufactur- 
ing 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 Coinpetition for the Sulphonated Oil Manufacturing Industry, 
and hearings having been duly held thereon and the annexed report 
on said Code, containing findings with respect thereto, having been 
made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Aduiinistrator for Industrial RcLOvery, 
pursuant to authority vested in me by Executive Orders of the Pres- 
ident, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved; provided, hoAvever, that 
the provisions of Sections 1 and 2 of Article VII be and they are 
hereby stayed pending my further order. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
George L. Berry, 

Division Administrator. 
Washington, D.C, 

June 26, 1931^. 

70241° 657-152 34 (09) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : A Public Hearing on the Code of Fair Competition for the 
Sulphonated Oils Manufacturing Industry, submitted by the Sulpho- 
nated Oil Manufacturers Association, Inc., was conducted in Wash- 
ington on the 13th of April, 1934, in accordance with the provisions 
of the National Industrial Recovery Act. This Association claims 
to represent seventy-eight (78%) per cent of the dollar sales volume 
of the Industry. 

THE INDUSTL'RY 

It is recognized that there are a larger number of firms which 
may intermittently manufacture sulphonated oil products but there 
are considered to be essentially about fifty bona fide members of the 
Industry. The Industry repoi-ted that the aggregate invested capi- 
tal in 1928 amounted to $4,227,526, and in 1933 this was increavSed 
to $5,973,578. The aggregate annual sales of production in 1928 is 
purported to have been $9,014,957, and in 1933 was $12,838,800. It 
has been estimated that the Industry employed slightly less than 
five hundred employees in 1928 and slightly less than seven hundred 
in. 1933 under the President's Reemployment Agreement. 

The products of this industry are used primarily as raw materials 
in some of our basic Industries, such as the Tanning Industry, 
Textile Industry, Glue Industry, Paper Industry, Printing Inks 
Industry, Lubricating Industry and to a certain extent in agricul- 
tural supplies and similar allied Industries. 

PROVISIONS OF THE CODE AS TO WAGES AND HOURS 

This Code specifies, with certain exceptions, a basic work week of 
forty hours and a limitation of eight hours per day. There is a 
similar provision for clerical and office employees with the allow- 
a,nce of one forty-eight hour \veek in any one month period. 

There are excepted from the basic forty hour week; em.ployees 
engaged in emergency maintenance and repair w^ork wnth the provi- 
sion of time and one-half for all hours worked in excess of forty 
hours per week and eight hours per day. There are also excepted 
outside salesmen, managers, executives, supervisory or technical 
employees who receive tliirty-five dollars or more per week. A maxi- 
mum of forty-four hours per week is established for engineers, fire- 
men, shi])j)ing clerks and truckmen. Watchmen are peimitted to 
work a nuixinuun of fifty-six ]u)urs per week, with one day of rest 
in every seven day period. Employees engaged in batch processes 
where the limitation of hours would unavoidably reduce production 
may be allowed to work in excess of the basic forty hour work week 

(100) 



101 

with the payment of time and one-half for all hours worked in excess 
thereof. 

The Code establishes a minimum waf^c of forty-five cents which 
applies only to common labor or totally unskilled labor. Minimum 
wage rates in effect on March 15, 1934, higher than those specified in 
the Code shall not be reduced. Female employees shall receive the 
same rates of pay as male employees when they displace male em- 
ploj^ees. Clerical and office employees have a minimum wage rate of 
fifteen dollars per week. Office boys and girls shall be paid not less 
than eighty per cent of such minimum wage, with the exception that 
such class of employees shall not exceed five per cent of the total 
number of office employees in any one plant. 

There shall be an equitable adjustment in all pay schedules above 
the minimum within thirty days after the effective date by any 
employer who has not heretofore made such adjustments. 

ECONOMIC EFFECTS OF THE CODE 

The Code reduces working hours about twenty-three per cent below 
those of 1929 and increases minimum wage rates at least propor- 
tionately. Practically all the factory w^orkers are males, most of 
whom are semi-skilled or skilled. An increase of fourteen per cent 
in such wageearnei-s was shown from June, 1933, and a further 
increase of about eighteen percent under the President's Reemploy- 
ment Agreement. An unusual increase in office employees was also 
noted. 

Minimum wage rates w^ere increased under the President's Reem- 
ployment Agreement so that despite the shortened working hours, 
minimum weekly earnings were noticeably higher than the lowest 
noted in June, 1929. 

Since the Industry is generally operating under the forty hour 
week, further increase in employment will be dependent on increased 
business. 

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 of the 
proceedings in this matter : 

I find that : 

(a) Said Code is well designed to promote the policies and 
purposes of Title I of the National Industrial Recovery Act, includ- 
ing removal of obstructions to the free flow of inter-state and foreign 
commerce which tend to diminish the amount thereof and wall 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 tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing powder, by 



102 

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

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

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

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

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

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

For these reasons, this Code of Fair Competition for the Sul- 
phonated Oils Manufacturing Industry has been approved. 
Kespectfully, 

Hugh S. Johnson, 

Administrator. 
June 26, 1934, 



CODE OF FAIR COMPETITION FOR THE SULPIIONATED 
OILS MANUFACTURING INDUSTRY 

Article I — Purposes 

To effect tlie policies of Title I of the National Industrial Recov- 
ery Act, this Code is established as a Code of Fair Competition for 
the Sulphonated Oils Manufacturing Industry, and its provisions 
shall be the standards of fair competition for such industry and 
shall be binding upon every member thereof. 

Article II — Definitions 

Section 1. The term " Sulphonated Oils Manufacturing Indus- 
try " means and includes the manufacture of the product or products 
resultant from the reaction between a saponifiable oil or fat or its 
fatty acids, or a mixture of saponifiable oils or fats or their fatty 
acids, and sulphuric acid or similar sulphonating a-gent, as a result 
of which some or all of the oil is converted into a sulphate. 

Section 2. The term " Member of the Industry " means and in- 
cludes, but without limitation, any individual, partnership, associa- 
tion, corporation, or other form of enterprise engaged in the Indus- 
try, eitlier 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 includes anyone 
by whom 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. 

Article III — Hours 

MAXIMUM HOURS 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any one (1) week or eight (8) hours in any 
twenty-four (24) hour period, except as herein otherwise provided. 

HOURS FOR CLERICAL AND OFFICE EMPLOYEES 

Section 2. No person employed in clerical or office work shall be 
permitted to work in excess of forty (40) hours in any one (1) 
week, except that during any one (1) week in a one (1) month period 

(103) 



104 



such employee may be permitted to work a maximum of forty-eight 
(48) hours in any such week. A normal work day shall not exceed 
eigM (8) hours. 

STANDARD WEEK 

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

employment by several employers 

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

excefitons as to hours 

Section 5. The limitation as to hours of labor as specified in 
Sections 1, 2 and 3 of this Article III shall not apply to the follow- 
ing : 

(a) Employees engaged in emergency maintenance, or emergency 
repair work involving breakdown or protection of life or property: 
provided, that in such special cases not less than one and one-half 
(II/2) times th« normal wage rate for any employee so employed shall 
be paid for all hours worked in excess of forty (40) hours in any 
week, or eight (8) hours in any day. 

(b) Outside sales or sales service men, or to persons employed in 
a managerial, executive, supervisory or technical capacity (not to 
include skilled ojierating labor or non-professionally trained labora- 
tory workers) who receive $35.00 per week or more. 

(c) Engineers, firemen, shipping clerks and truckmen engaged in 
outside delivery and pick-up service, who may be employed up to a 
maximum of forty-four (44) hours in any week. 

(d) Watchmen, who may be permitted to work not exceeding 
fifty-six (.56) hours in any one (1) week period; provided, that such 
employee shall have at least one (1) day's rest in each seven (7) 
day period. 

(e) The limitation as to maximum hours of work shall not apply to 
very special cases where restriction of hours of labor of skilled 
workers in l)atch processes would unavoidably reduce or interrupt 
production because of demands inherent and peculiar within the 
process itself; provided, however, that such employees in such special 
cases shall not be permitted to work more than forty-eight (48) 
hours in any one (1) week, and provided that in such special cases 
at least one and one-half times the normal wage rate shall be paid 
to any employee so employed for hours worked above forty (40) 
hours in any week or eight (8) hours in any day. 

(f) During any period in which a concentrated demand shall 
place an unusual and temporary burden or to meet seasonal peak 
requirements, batch processors may be permitted to work not more 
than fort3^-eight (48) hours in any week and not more than eight 
(8) hours in any one (1) day, in not more than six (6) weeks in any 
six (G) months^ period; provided, that not less than time and one- 



105 

half the normal rate shall be paid to any employee so employed for 
hours worked above forty (40) hours in any week or eight (8) hours 
in any day. 

Article IV — Waoes 

MINIMUM WAGi:S 

Section 1. No employee shall be paid less than at the rate of 
forty-five (45^) cents per hour except as herein otherwise provided. 
This minimum shall apply to common labor or totally unskilled 
labor. Other classes of labor, including piece workers, shall bo 
compensated at rates above this minimum. 

Minimum wages which were in effect in the Industry on March 15, 
1034, which were above the minimum specified herein above shall in 
no case be reduced. 

CLERICAL AND OFFICE E3IPLOYEES 

Section 2. No accounting, clerical or office employee shall be paid 
less than at the rate of fifteen ($15.00) dollars per week; provided, 
however, that office boys and girls may be paid at a rate not less than 
80% of such minimum, and provided, further, that the number of 
such boys and girls so paid shall constitute not more than 5% of the 
total number of office employees of any one employer; but in any 
case each employer shall be entitled to at least two (2) such employees. 

piecework compensation MINIMUM WAGES 

Section 3. This article establishes a minimum rate of j)ay which 
shall applj', irrespective of whether an employee is actually compen- 
sated on a time rate, piecework, or other basis. 

FE]\rALE EMPLOYEES 

Section 4. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees, and when they displace male emi^loyees they shall receive 
the same rate of earnings as the men they displace. 

The Code Authority shall, within ninety (90) days after the 
effective date of this Code, file with the Administrator a description 
of all occupations in the Industry in which both men and women 
are employed. 

WAGES ABOVE THE MINIMUM 

Section 5. Equitable adjustments above the minimum in all pay 
schedules of employees shall be made within thirty (30) days after 
the effective date of this Code by any employer who has not here- 
tofore made such adjustments under the Act. In no event, however, 
shall hourly rates be reduced. AVithin sixty (60) days after the 
effective date of this Code, each member of this Industry shall make 
a report of such adjustments (wliether made prior to or subsequent 
to date of approval of this Code) to the Code Authority. 



106 

HANDICAPPED PERSONS 

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 
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 sucii employees. 

PAYMENT OF WAGES 

Section 7. An employer shall make payment of all wages in 
lav/ful currency, or by negotiable check therefor, payable on de- 
mand. These wages shall be exempt from any payments for 
pensions, insurance or sick benefits other than those voluntarily 
authorized to be paid by the wage earners or required by the State 
Laws. Pay periods for wages shall be at least semi-monthly and 
for salaries at least once in each month. Employers shall agree 
not to withhold wages except as otherw^ise provided by law. 

Article V — General Labor and Other Provisions 

CHILD labor 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industry. No person under eighteen (18) years 
of age shall be employed at operations or occupations which are 
hazardous in nature or dangerous to health. The Code Authority 
shall submit to the Administrator within sixty (60) days after 
the approval of this Code a list of such operations or occupations. 
In any State an employer shall be deemed to have complied with 
this provision as to age if he shall have on file a 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. 

PROVISIONS FROM THE ACT 

Section 2. (a) Employees shall have the right to organize and 
bargain collectively through representatives of their own choosing, 
and shall be free from the interference, restraint, or coercion of 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- 



107 

frain from joining, oi-fi^anizi-ng, or assisting a labor organization of 
his own choosing, and 

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

RECLASSIFICATIOX OF EMPLOYEES 

Section 3. No emplo3'er shall reclassify employees or duties of oc- 
cupations performed or engage in any other subterfuge for the pur- 
pose of defeating the purposes or provisions of the Act or of this 
Code. 

STANDARDS FOR SAFETY AND HEALTH 

Section 4. Every employer shall make reasonable provision for 
the safety and healtli of his employees at the place and during the 
hours of their employment. Standards of safety and health for 
each division of the Industry shall be submitted to the Adminis- 
trator hj the Code Authority within six (6) months after approval 
of the Code. 

STATE LA\VS 

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 firo 
protection, than are imposed b}^ this Code. 

posting 

Section 6. All employees shall post and keep posted copies of this 
Code or its labor provisions in conspicuous places accessible to all 
employees. Every member of the Industry shall comply with all 
rules and regulations relative to the posting of provisions of Codes 
of Fair Competition which may from time to time be prescribed by 
the Administrator. 

DISMISSAL FOR COMPI.AINT 

Section 7. No employee shall be dismissed by reason of making a 
comi^laint or giving evidence with respect to a violation of this Code. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

organizatio"n and constitution 

Section 1. A Code Authority is hereby established to cooperate 
with the Administrator in the administration of this Code. 

Section 2. The Code Authority' shall consist of five (5) members 
to be elected by the members of the Industry by a fair method of 
election subject to the approval of the Administrator, provided that 



108 

the members so elected are approved by 51% of the members of the 
Industry representing at least 66%% in weight of raw oils, fats, 
and fatt}^ acids actually submitted to the process of sulphonation 
for the preceding eighteen (18) calendar months, who are entitled 
to vote. The term of office of the members of the Code Authority 
shall be for one (1) year or until the election of their successors. 

Section 3. In addition to the members of the Code Authority 
above mentioned, the Administrator may appoint not more than 
three (3) members to the Code Authority without vote and without 
compensation from the Industry. 

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 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 Avilful malfeasance or nonfeasance. 

Section 5. In order that the Code Authority shall at all times be 
truly representative of the Industry and in other respects comply 
with the provisions of the Act, tlie 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 and composi- 
tion of the Code Authority. 

Section 6. If the Administrator shall determine that anj^ 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 
an 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 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 C^ode 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 Au- 
thority, members of tlie Industry subject to this Code shall furnish 
such statistical information as the Administrator may deem necessary 
foi- the purposes recited in Section 3 (a) of the Act to such Federal 
and State agencies as he may designate ; ]:)rovided that nothing in this 
Code shall relieve any member of the Industry of any existing obliga- 



109 

tions to furnish reports to any Government agency. No individual 
report shall be disclosed to any other member of the Industry or to 
any other party except to such other Governmental agencies as nuiy 
be directed by the Administrator. 

(d) To use such trade associations and other agencies as it deems 
proiH'r for the carrying out of any of its activities provided for 
herein, provided that nothing herein shall relieve the Code Autliority 
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 reconmiendations to the Administrator for the coor- 
dination of the administration of this Code and such other Codes, if 
any, as may be related to or affect members of the Industry. 

(f ) 1. It being found necessary in order to support the adminis- 
tration of this Code and to maintain the standards 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 this approval subject to 
such notice and opportunity to be heard as he may deem necessary ; 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes; and (2) an equitable basis upon which the funds necessary 
to support such budget shall be contributed by members of the 
Industry ; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable con- 
tribution as above set forth by all members of the Industiy, 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 shall bo 
entitled to participate in the selection of members of the Code Au- 
thority or to receive the benefits of any 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; and no subsequent 
budget shall contain any deficiency item for expenditures in excess 
of prior budget estimates except those which the Administrator shall 
have so approved. 

(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 
stabilization of employment; and including modifications of this 



110 

Code which shall become effective as part hereof upon approval by 
the Administrator after such notice and hearing as he may specify. 

(i) To appoint a Trade Practice Committee which shall meet with 
the Trade Practice Committees appointed under such other codes as 
may be related to the Industry for the purpose of formulating fair 
trade practices to govern the relationships between employers under 
this Code and under such 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. 

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

Article VII — Prices and Terms or Payment 

Section 1. Price Lists. — The Code Authority shall determine what 
are commonly known in the Industry as staple products of the Indus- 
try and every member of the Industry within thirty (30) days after 
written notification of such determination by the Code Authority 
shall file with the Code Authority a list of the minimum selling prices 
and discounts and terms and conditions of sale of all of his or its 
staple products, designating the brand, name, number, letter, or any 
other form used for the identification thereof. None of the selling 
prices and discounts and terms and conditions of sale shown in any 
list filed by any member of the Industry, as herein provided, shall 
be changed except by the filing by such member with the Code 
Authority of a new list of his or its selling prices and discounts and 
terms and conditions of sale, which shall become effective three (3) 
days after the date on which such new price list and discounts and 
terms and conditions of sale shall have been so filed. The Code 
Authority shall advise the members thereof of the filing of all price 
lists, discounts, and terms and conditions of sale. 

(a) Price lists shall be open for inspection to all interested parties 
immediately upon being filed with the Code Authority. 

(b) If at any time, the Administrator after a hearing shall find 
that this open price arrangement is being used for the purpose of 
price fixing he may in his discretion modify and/or amend, suspend 
its operation, or declare it permanently inoperative. 

Section 2. Terms and Condiilons of Sale. — No member of the In- 
dustry shall sell or offer for sale any staple product, except products 
which are sold for export, at a price lower or at a discount or terms 
and conditions of sale more favorable to the purchaser than the 
price, discount, terms or conditions of sale specified in the list filed 
by such member of the Industry in accordance with the foregoing 
provisions.^ 

Section 3. Maximum. Cash Dwcount. — A discount for cash may 
be allowed not in excess of one (1%) per cent. 



^ See paragraph 2 of order appidvinj,' this Code. 



Ill 

Article VIII — Unfair Pr^vctices 

The folloAving described acts shall constitute unfair practices and 
are prohibited : 

(a) Knowingly selling the ])roducts of the Industry to any dis- 
tributor, dealer, or consumer of a quality substantially lower than 
that previously purchased by such consumer without informing eucii 
distributor, dealer or consumer of the difference, or allegifjd differ- 
ence, in qualit^^ 

(b) Giving, permitting to be given, or offering to give anything 
of value for the purpose of influencing or rewarding the action of 
any employee, agent, or representative of another in relation to the 
business of the employer of such employee, the principal of such 
agent, or the represented party, without the knowledge of such em- 
ployer, principal or party. This provision shall not be constiiied 
to prohibit free and general distribution of articles commonly used 
for advertising except so far as such articles are actually used for 
commercial bribery as hereinabove defined. 

(c) Procuring by fraud, misrepresentation, or other unfair means, 
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 
provisions of the Code. 

(d) Imitating, or simulating any design, style, mark or brand 
used by any other member of the Industry for the purpose of deceiv- 
ing customers or prospective customers. 

(e) Knowingly using or sub.stituting any material substantially 
superior or inferior in quality to that specified by the purchaser of 
any product. 

(f) Secretly offering or making any payment or allowance of a 
rebate, refund, commission credit, unearned discount or exce.ss allow- 
ance, whether in the form of mone}^ or otherwise, nor shall a member 
of the Industry secretly offer or extend to any customer any special 
service or privilege not extended to all customers of the same class, 
for the purpose of influencing a sale. 

(g) Disseminating, publishing, or circulating any false or mis- 
leading information relative to any product or price for any product 
of any member of the Industry, or the credit standing or ability of 
any member of the Industry, or the conditions or manufacture or 
production of any product, or the conditions of employment among 
the employees of any member thereof. 

(h) Wilfully inducing or attempting to induce the breach of ex- 
isting contracts between competitors and their customers by any false 
or deceptive means, or interfere with or obstruct the performance 
of any such contractual duties or services by any such means, with 
the purpose and effect of hampering, injuring, or embarassing com- 
petitors in their business. 

(i) Making or giving to any purchaser of any product any guar- 
antee or protection in any form against decline in the market price 
of such product. 

(j) Knowingly withholding from or inserting in any quotation 
or invoice any statement that makes it inaccurate in any material 
particular. 



112 

(k) Making any sale or contract of sale of any product under any 
description which does not fully describe such product in terms cus- 
tomarily used in the Industry, excepting products sold under brand 
names. 

(1) Making any allowance in the form of purchase or otherwise 
for the return of any container in excess of the amount charged 
therefor and which amount shall have been separately stated upon 
the invoice. 

(m) The making of false statements, or reports, w^ritten or oral, 
required pursuant to any of the provisions of this Code. 

(n) Publishing or circulating unjustified or unw^arranted threats 
of legal proceedings which tend to or have the effect of harassing 
competitors or intimidating their customers. Failure to prosecute 
in due course shall be evidence that any such threat is unwarranted 
or unjustified. 

Article IX — Amendments 

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

Section 2. Any member of the Industry may propose an amend- 
ment to this Code. Each amendment so proposed shall be sub- 
mitted to a meeting of the Code Authority and if the Code Au- 
thority shall approve thereof the amendment so proposed shall 
be submitted to members of the Industry eligible to vot€. If a 
majority of the members of the Industry eligible to vote repre- 
senting a majorit}' in weight of raw oils, fats and fatty acids ac- 
tually submitted to the process of sulphonation as shown by the 
records of the Industry for the preceding eighteen (18) calendar 
months shall vote in favor of the adoption of such amendment, 
such amendment shall be submitted by the Code Authority to the 
Administrator for his approval and/or for such other action as the 
Administrator may desire and shall become effective upon the ap- 
proval of the Administrator. Nothing in this provision shall 
deprive the Administrator from initiating such amendments as he 
is authorized to make b}' the National Industrial Recovery Act. 

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 dis- 
criminate against small enterprises. 

Artici^ XI — Effective Date 

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

Approved Code No. 409. 
Registry No. 099-16. 

o 



Approved Code No. 470 
CODE OF FAIR COMPETITION 

FOR THE 

ALUMINUM INDUSTRY 
As Approved on June 26, 1934 



ORDER 

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

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find, in view of the findings and recommendations of 
said report and in view of the objections which have been made to 
said Code and which have received due and careful consideration, 
that it is in the public interest to permit said Code to be put into effect 
for a period of 90 days after the effective date thereof, in order to 
determine the extent to which said Code will aid to promote the pol- 
icy and purposes of Title I of the National Industrial Recovery Act, 
with the pertinent provisions of which Act I find that said Code 
complies and I do hereby order that said Code be, and it is hereby 
approved, to continue in effect for said trial period of 90 days, sub- 
ject, however, to the right reserved in the Administrator to cancel or 
modify this order of approval at any time and subject further to the 
following conditions : 

1. The Administrator will cause an investigation to be made during 
said 90 day period of the past practices of the industry and any 
modification of such practices or effect upon such practices resulting 
from the provisions of the Code and a report made to the Adminis- 
trator at least ten (10) days prior to the expiration of said trial 
period, in order that he may determine the extent to which the Code 
has operated to protect small enterprises from any alleged oppression 
or discrimination and has aided to effectuate the policy of said title 

70243" 657-154 34 (113) 



114 

of said Act and the Administrator will request the aid of any other 
appropriate agencies of government in the making of such investiga- 
tion and report. 

2. During said 90 day period the Administrator will receive and 
investigate any complaints of unfair competition in the sale of fabri- 
cated products at prices constituting unfair competition, or oppress- 
ing small enterprises, or tending toward monopoly, or the impairment 
of code wages and working conditions. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
C. E. Adams, 

Division Administrator, 

Washington, D.C, 

J turn 26, 1934, 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The ori^nal Code of Fair Competition for the Aluminum 
Industry was presented on August 18, 1933, by the Association of 
Manufacturers in the Aluminum Industry, an unincorporated mem- 
berehip society organized in 1933, representing over 95% of the 
known members of industry and about 97% in volume of production. 

A joint public hearing was held on September 28, 1933, at which 
time the proponents of this code, together with those of the Sec- 
ondary Aluminum Industry and the Aluminum Fabricators Group, 
were heard. A Code of Fair Competition for the Secondary Alumi- 
num Industry was approved on February 6, 1934, and provisions 
were made in the code for that Industry that upon the election of 
the Administrator it may be made a supplemental code to this major 
code for the Aluminum Industry when approved. The code as pre- 
sented by the Aluminum Fabricators Group represents a minority 
interest representing less than 3% activity. The code as presented 
is in direct conflict and overlaps with the major code for the Alumi- 
num Industry. This code for the Aluminum Industry as presented 
by the Association of Manufacturers in the Aluminum Industry was 
revised during the recess of the hearing and was submitted in its 
final form for approval. Every person who requested an appearance 
was properly heard in accordance with statutory and regulatory 
requirements. 

The Aluminum Industry as outlined in this code embraces all steps 
in the Industry from the mining of bauxite, the beneficiation of 
bauxite, and the reduction of alumina to virgin aluminum and the 
subsequent fabrication of such virgin aluminum and the sale of such 
fabricated products. 

The major stepg of the Aluminum Industry are : 

1 : The mining of bauxite, the principal ore oi aluminum. 

2 : The extraction of alumina, the oxide of the metal, and 

8 : The reduction of alumina to virgin aluminum by electro-chem- 
ical processes, and 

4: The fabrication of such virgin aluminum into semifinished or 
finished industry products, and 

5 : The sale of such fabricated products. 

In addition to the manufacture of aluminum, bauxite finds use in 
the manufacture of chemicals, abrasives, refractories and certain 
cements. These uses consume about one-half of the American 
bauxite production. 

The American Aluminum Industry obtains its bauxite supply 
from two principal sources, Arkansas and Dutch Guiana, and since 
1928 the imports have been greater than the domestic production. 

(115) 



116 



The consumption of bauxite in the United States, as reported by 
the United States Bureau of Mines, is as follows : 



Year 


Produc- 
tion 


Imports 


Exports 


Apparent 
consump- 
tion 


Year 


Produc- 
tion 


Imports 


Exports 


Apparent 
consump- 
tion 


1922 

1923 

1924 

1925 

1926 

1927 


309, 600 
522. 700 
347, 600 
316, 500 
392, 200 
320, 900 


23,700 
119,000 
202,000 
353, 700 
281, 600 
356, 600 


19,600 
73, 600 
77, 100 
77,600 
87, 800 
121,900 


313. 700 
563, 100 
472, 500 
592, 600 
586, 000 
655, 600 


1928 

1929 

1930 

1931 

1932 


375, 400 
365, 800 
330, 600 
195, 900 
96,300 


350, 100 
380, 800 
409, 700 
306, 500 
205, 600 


113, 000 
133,600 
104, 500 
83,400 
28,500 


612, 500 
613,000 
635, 800 
419,000 
273,400 



After the milling and drying of the ore the concentrates are con- 
verted into alumina, the oxide of aluminum, from which the metal 
is reduced. The process of recovery of alumina from the concen- 
trates is one of purification wherein the concentrates are treated with 
caustic soda, resulting in the removal from the concentrates of iron, 
silica and otlier undesirable constituents. The resultant aluminum 
hydrate is then precipitated, purified and calcined resulting jn 
alumina as the end product. The process is fairly expensive as 
large amounts of caustic soda are required and tlie work is carried 
out under temperature and pressure. Approximately one ton of 
alumina is recovered from two tons of bauxite. 

The alumina as produced from bauxite is dissolved in a fused bath 
of cryolite, and aluminum is precipitated from the molten bath by 
passing an electric current through it. About one ton of aluminum 
IS recovered from two tons of alumina. The process requires large 
quantities of electrical energy, about 22,000 kilowatt hours being 
required for each short ton of aluminum produced. All the plants 
for the manufacture of virgin aluminum m America are owned by 
one company, and are located at Niagara Falls, N.Y., Massena, N.Y^, 
Alcoa, Tenn., and Badin, N.C., the selection of sites being deter- 
mined principally by the availability of cheap electrical power. 

The production oi virgin aluminum in the United States as re- 
ported by the American Bureau of Metal Statistics in metric tons, 
IS as follows: 

1022_^ 83, 600 

1923 58, 500 

1924 68, 300 

1925 63, 500 

1926 65, 800 

1927 72, 600 

During the same period the production of Secondary Aluminum 
has been about two-fifths of the tonnage of j^rimary aluminum. 
The virgin aluminum is subsequently used by the original producer 
and also sold to independent fabricators for the manufacture of 
aluminum alloys, aluminum plate and sheet, extruded shapes, forg- 
ings, tubing, bars, rods, wire, cable, aluminum foil, aluminum cast- 
ings and aluminum bronze powder. 

The independent fabricators of aluminum are also large users of 
imported virgin aluminum. In fact the imports of virgin aluminum 
ingot during the past few years have exceeded the amount of virgin 
aluminum ingot sold by the American producers to the independent 
fabricators. 



1928 95, 300 

1929 102, 100 

1930 103, 900 

1931 80, 500 

1932 47, 600 



117 

Article I. States the purpose of the Code. 

Article II. Defines specific terms applicable to the Aluminum 
Industry as used in this Code. 

ARncLE III. The maximum hours are limited to 40 hours per 
week; no emplo3Te unless otherwise specified sliall work more than 
six days in any seven day period. Exceptions from the maximum 
hours per week are provided for to meet tlie requirements of In- 
dustry. Employees may be permitted to work in excess of 40 hours 
per week during six weeks in any six months' period of a calendar 
year in order to meet seasonal or peak requirements. Such em- 
ployees may be permitted to work not more than 48 hours per week 
with the proviso that time and one-half shall be paid to any em- 
ployee so employed for all hours worked in excess of 40 hours per 
week or eight hours per day. Similar provisions are made to meet 
the requirements of continuous processes. Office, salaried and other 
employees not covered by the above who receive not less than $35.00 
per week shall not be permitted to work in excess of 40 hours in 
any one week except that they may be permitted to work 48 hours 
for one week in any one month period. Watchmen may be per- 
mitted to work a maximum of 54 hours per week with one day off 
per week. Employees engaged in an executive, managerial or super- 
visory capacity who receive not less than $35.00 per week and to 
their technical staffs, excluding highly skilled workers engaged in 
production, and to outside sales or sales service men, and to those 
engaged in emergency repairs or maintenance where the safety of 
life or health or the protection of property demands longer hours, 
are not subject to hourly limitations. 

Article IV. The minimum wages vary for the several divisions 
of the Industry. Although the Industry at the present time is pay- 
ing more than the minimums specified in the code, provision has been 
made that where the minimum wage per hour in effect in any plant or 
establishment of any member of the Industry on May 1st, 1934, was 
higher than the minimum wage per hour as set for this Code, such 
minimum wage per hour shall not be reduced except on the ap- 
proval of the Administrator. The minimum weekly wage for per- 
sons employed in clerical or office work varies from $12.00 to $15.00 
per week based on population differentials. The minimum rate of 
pay for work performed for any pay period shall apply irrespective 
of whether an employee is actually compensated on a time rate, 
piece work or other basis. Provision is made for the employment 
of handicapped persons. Provision is also made for the adjustment 
of wages above the minimum if such adjustment has not been made 
prior to June 16, 1933. 

Article V. Provides that no employer shall employ any person 
under 16 years of age and that no person under 18 years of age shall 
be employed except in clerical, office, sales, service, technical and 
engineering departments. This article also sets forth mandatory 
provisions respecting the rights of employees to organize and bargain 
collectively. It also provides for matters having to do with reclassi- 
fication of employees, standards for safety and health, the observance 
of State laws and the posting of complete copies of the labor provi- 
sions of this code so that they are accessible to employees. 



118 

Akticle VI. Establishes a Code Authority consisting of eleven 
members who are to be tiaily representative of the Industry, each one 
of such members representing one of the commodity divisions of the 
Industry, Such representative shall be elected in an equitable man- 
ner and such method of election shall be subject to the disapproval 
of the Administrator. Provision is also made that no member of 
the Industry shall have more than four representatives on the Code 
Authorit}^ Provision is also made that one member of the Industry 
may be elected to the Code Authority to represent the members of 
Industry who are not members of the association. In addition to the 
above membership there may be one and not more than three repre- 
sentatives without vote and without compensation from the Industry 
to be appointed by the Administrator for such terms as he may 
specify. In addition to the organization of the Code Authority the 
powers and duties thereof are also outlined in this Article. 

Article VII. Makes provisions for the modification of this Code. 

Article VIII. No provision of this code shall be so applied as 
to permit monopolies or monopolistic practices or to eliminate, 
023press or discriminate against small enterprises. 

Article IX. Sets forth the trade practices for the Aluminum 
Industry as apply to production and selling of aluminum ingot from 
virgin aluminum alone or from virgin aluminum in combination with 
scrap which has not left the possession of the producer. 

Article X. Provides that the code shall become effective on the 
fifteenth day following its approval by the President. 

Article XI. Provides for termination of the code. 

The Deputy Administrator in his final report to me on said code 
having found as herein set forth and on the Ijasis 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 super- 
vision, by eliminating unfair competitive practices, by promoting 
the fullest possible utilization of the present productive capacity of 
industries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating Industry. 

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

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



119 

(d) Tlio Code is not designed to and will not promote monopolica 
or monopolistic practices. 

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

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

For these reasons, therefore, this Code has been approved. 
Kespectfully, 

Hugh S. Johnson, 

Adnhinistrator, 
June 26, 1934. 



70243' 657-154 34- 



CODE OF FAIR COMPETITION FOR THE ALUMINUM 

INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act this Code is established as a Code of Fair Competition 
for the Aluminum Industry, and shall be the standard of fair com- 
petition for such Industry and shall be binding upon every member 
thereof. 

Article II — Definitions 

"V^Hierever used in this Code or any supplement pertaining thereto, 
the terms enumerated in this Article shall have the meanings herein 
defined. 

(a) "Aluminum Industry" (or "Industry") as used herein, in- 
cludes any or all operations of the following Commodity Divisions 
and the original sale of the products produced or manufactured by 
a Member of the Industry either directly or indirectly through 
parent, subsidiary and/or affiliated company: 

1. The mining of bauxite and other aluminum ores. 

2. The concentration of aluminum ore and other materials sub- 
sidiary to the smelting of aluminum. 

3. The production of virgin aluminum. 

4. Secondar}' aluminum. (Approved Code #268.) 

5. The production of aluminum plate and sheet of a thickness of 
six one-thousandths (.006) of an inch or greater for sale as such to 
others. 

6. The production of aluminum extruded shapes. 

7. The production of aluminum forgings. 

8. The production of aluminum tubing, conduit, bar, rod, wire, 
cable and other wrought forms and products not otherwise classified. 

9. The production of aluminum foil rolled to a thickness of less 
than six one-thousandths (.006) of an inch, whether attached or 
affixed to other materials or not. 

10. The production of aluminum pistons. 

11. The production of aluminum bronze powder. 

(b) The term "Aluminum " as used herein means aluminum and 
all alloys in which aluminum is the chief constituent and any 
product made therefrom together with any product offered for sale 
vs Ahmiinum. 

(c) The term " Member of the Industry " as used herein includes, 
but without limitation, any individual, partnership, association, 
corporation or other form of enterprise engaged in the Industry, 
either as employer or on his or its own behalf. 

(120) 



121 

(d) Tlie form " Employee " as used herein means and includes 
anyone ent^aged in the Industry in any capacity, receivin<r compen- 
sation for his services, irrespective of the nature or method of pay- 
ment of such compensation, except a member of the Industry. 

(e) The term " Emploj'er " as used herein inchides any one by 
whom any such employee is employed or compensated. 

(f ) 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 under Title I of the National Industrial Re- 
covery Act. 

(g) Population, for the purposes of this Code, shall be determined 
by reference to the latest Federal census. 

(h) The term "Southern Section" as used herein means and in- 
cludes the States of Virginia, North Carolina, South Carolina, Ten- 
nessee, Kentucky, Georgia, Florida, Alabama, Mississippi, Louisiana, 
Arkansas, Oklahoma, and Texas. 

(i) The term "Northern Section" as used herein means and in- 
cludes all of the United States other than those states specified in 
paragraph (h). 

(j) The term "Association " as used herein means the Association 
of Manufacturers in the Aluminum Industry. 

(k) The term " Secretary " as used herein means the Executive 
Secretary of the Association of Manufacturers in the Aluminum 
Industry. 

(1) The term "Learner" as used herein means an employee with- 
out previous experience engaged to become competent on one or more 
operations, but who shall not be so classified after ninety (90) days 
employment. 

Article III — Hours or Labor 

MAXIMUM HOURS 

(a) No employee shall be permitted to work in excess of fortj^ (40) 
hours in any one (1) week or more than six (6) days in any seven 
(7) day period except as herein otherwise provided. A normal work 
day shall not exceed eight (8) hours. 

HOURS FOR CLERICAL AND OFFICE EMPLOYEES 

(b) No person employed in clerical or office work shall be permit- 
ted to work in excess of forty (40) hours in any one (1} week or 
more than six (6) days in any seven (7) day period, except that for 
one (1) week in a one (1) month period such employee may be per- 
mitted to work a maximum of forty-eight (48) hours. A normal 
work day shall not exceed eight (8) hours. 

EXCEPTIONS AS TO HOURS 

(c) The maximum hours fixed in (a) of this Article shall not 
apply to employees engaged in emergency maintenance, or emer- 
gency repair work, involving breakdown or protection of life or 
property; provided that in such special cases one and one-half (1%) 



122 

times tlie normal wage rate for any employee so employed shall be 
paid for all hours worked in exces-s of forty (40) hours in any 
one (1) week, or eight (8) hours per day. 

(d) The maximum hours fixed in (a) and (b) in this Article 
shall not apply to persons engaged in a managerial, executive, 
clerical or supervisory capacity, and to their immediate assistants, 
who receive not less than Thirty-Five Dollars ($35.) per week; 
and to technical staffs (excluding highly skilled workers engaged 
in production) ; and to outside sales or sales service men, 

(e) Watchmen shall be permitted to work a maximum of fifty- 
four (54) hours per week, with one (1) day off per week. 

(f) There may be a tolerance of 10% additional hours over the 
maximum hours in any week or the normal work day fixed in (a) 
of this Article, for employees engaged in the preparation, care and 
maintenance of machinery and production facilities, firemen, engi- 
neers, stock and shipping employees and truckmen. 

(g) In case of employees engaged in continuous process opera- 
tions such employees may be permitted to work on a schedule of 
forty-eight (48) hours per week in not more than two (2) weeks in 
any eight (8) week period. When because of an emergency the 
continuity of operations is endangered, employees engaged in con- 
tinuous process operations may exceed the above maximum hour 
provision but in such special cases they shall be paid one and one- 
half (li/o) times the normal wage rate for all hours worked in ex- 
cess of eight (8) hours in any one (1) day or forty -eight (48) hours 
in any one (1) calendar week except that one and one-half (II/2) 
times the normal wage rate shall not apply when an employee is 
held over because of lack of relief by another employee. 

(h) During any period in which a concentrated demand shall place 
an unusual and temporary burden for production work upon any 
facility of any member of the Industry, or to meet seasonal or peak 
requirements, or production emergencies, any employee may be per- 
mitted to work not more than fortv-eight (48) hours per week in 
not more than six (6) weeks in the first six (6) months of the 
calendar year, and not more than six (6) weeks in the last six (6) 
months of the calendar year; provided, that in such special cases, 
except as otherwise provided for in this Article, at least one and 
one-half (11/2) times the normal wage rate shall be paid to any 
employee so employed for hours worked in excess of forty (40) 
hours in any one (1) week or eight (8) hours in any one (1) day. 

(i) The maximum hours fixed in (a) of this Article shall not 
apply to skilled workers in processes the interruption of which 
would unavoidably reduce production because of demands inherent 
and peculiar within the process itself, provided, however, such em- 
ployees shall not be permitted to work in excess of forty-eight (48) 
hours in any one (1) week. 

EMPLOYMENT BY SEVERAL EMPLOYERS 

(j) No employer shall knowingly permit any employee to work 
for any time, which, when totalled with that already performed with 
another employer or employers in this Industry or other Industries 
exceeds the maximum permitted herein. 



123 

Article IV — Wages 

(a) Except 'as otherwise provided herein the minimum wa^e per 
hour that shall be paid in the several commodity divisions of the 
Industry shall be as follows: 

Where the minimum wage per hour in effect in any plant or estab- 
lishment of any Member of the Industry on May 1st, 1934, was higher 
than the minimum wage per hour as set by this Code, such minimum 
wage per hour shall not be reduced except upon approval of the 
Administrator. 

1. Bauxite and other aluminum ores : Southern rural section, 30<j^. 

2. Aluminum ore concentrates and other operations subsidiary to 
the smelting of aluminum: Northern section, 37i/i>^- 

3. Virgin aluminum : 

Northern section, 37i/2^- 
Southern section, 30^. 

4. Secondary aluminum : 35^. 

A code for this Division of the Industry has been approved and 
upon the election of the Administrator may be made a supplement 
to this Basic Code. 

5. Aluminum plate and sheet : 

Northern Section, male, 350. 
Northern Section, female, 300. 
Southern Section, 300. 

6. Aluminum extruded shapes: 

Northern Section, male, 350. 
Northern Section, female, 300. 

7. Aluminum forgings: 

Northern Section, male, 350. 
Northern Section, female, 300. 

8. Aluminum tubing, conduit, bar, rod, wire, cable, etc.! 

Northern Section, male, 350. 
Northern Section, female, 300. 

9. Aluminum foil: 

Northern Section, male, 350. 
Northern Section, female, 300. 
Southern Section, 300. 

10. Aluminum pistons : 
Northern Section, male, 350. 
Northern Section, female, 300. 
Southern Section, 300. 

11. Aluminum bronze powder: 

Northern Section, male, 350. 

Northern Section, female, 300. 

Southern Section, 300. 
Female employees performing substantially the same work as male 
employees shall receive the same rate of pay as male employees, and, 
when they displace male employees in substantially the same work 
they shall receive the same rate of pay as the men they displace. 
The Code Authority shall, within ninety (90) days after the effective 
date of this Code, file with the Administration a list of all occupa- 
tions in the Industry in which both men and women are employed. 

(b) No person employed in clerical or office work shall be paid 
less than at the rate of Fifteen Dollars ($15.00) per week of forty 



124 

Y40) hours in any city of over 500,000 population, or in the imme- 
diate trade area of such city; nor less than at the rate of Fourteen 
Dollars and Fifty Cents ($14.50) per week in any city between 
250,000 and 500,000 population, or in the immediate trade area of 
such city; nor less than at the rate of Fourteen Dollars ($14.00) per 
week in any city between 2,500 and 250,000 population, or in the 
immediate trade area of such city; nor less than at the rate of Twelve 
Dollars ($12.00) per week in places of less than 2,500 population. 

(c) Office boys and girls may be paid a minimum wage of eighty 
per cent (80% ) of the established minimum rate for office employees; 
provided, however, they shall be paid at a rate of not less than Ten 
Dollars ($10.00) per week. Such office boys and girls shall be limited 
to five per cent (5%) of the total number of office employees in any 
given establishment; provided, however, that each estabKsliment is 
entitled to employ at least one (1) such employee. 

(d) Learners may be paid not less than eighty per cent (80%) 
of the minimum wage schedule, and the total number of such learners 
shall not exceed five per cent (5% ) of the total number of employees. 
The learning period for any employee shall not exceed ninety (90) 
days. 

(e) 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 tiiis 
Code if the employer obtains from the State Authority, designated 
by the United States Department of Labor, a certificate authorizing 
such person's employment at such wages and for such hours as shall 
be stated in the certificate. Such Authority shall be guided by the 
instructions of the United States Department of Labor in issuing 
certificates to such persons. Each employer shall file monthly with 
the Code Authority a list of all sucn persons employed by him, 
showing the wages paid to and the maximum hours of work for 
such employee. 

(f) The established minimum rate of pay as set forth in Article 
IV (a) for the work performed in any pay period shall apply irre- 
spective of whether an employee is actually compensated on a time 
rate, piece work, or other basis. 

(g) Unless a readjustment has already been made since June 16, 
1933, equitable adjustments shall be made within thirty (30) days 
after the effective date of this Code in the wage schedule of all 
employees. Such equitable adjustments shall mean that differentials 
existing prior to the effective date of this Code shall not be reduced. 
In making such eq[uitable adjustment no wage schedule shall be 
reduced. Within sixty (60) days after the effective date of this 
Code each member shall report to the Code Authority all such 
adjustments. 

Article V — General Labor Provisions 

(a) Child Labor. — On and after the effective date of this Code 
no person under eighteen (18) years of age shall be employed in the 
Industry except in clerical, office, sales, service, teclmical and engi- 
neering departments, and no person under sixteen (16) years of 
age shall be employed in any capacity. In any State an employer 
shall be deemed to have complied with this provision as to age if 



125 

he shall have on file a certificate or permit duly signed by the 
authority in such State empowered to issue employment or age cer- 
tificates or permits showing that the employee is of the required age. 

(b) Provisio'Tis from the Act. — In compliance with Section 7 (a) of 
the Act it is provided : 

(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 purpose 
of collective bargaining or other mutual aid or protection. 

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

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

(c) Recl<Lssi-fication of Employees. — No employer shall reclassify 
employees or duties or occupations performed or engage in any other 
subterfuge for the purpose of defeating the purposes or provisions of 
the Act or of this Code. 

(d) St^indards for Safety and Health. — Every employer shall pro- 
vide for the safety and health of his employees at the place and 
during the hours of their employment. Standards for safety and 
health for each division of this Industry shall be submitted by the 
Code Authority to the Administrator for approval within six (6) 
months after the effective date of the supplemental code for such 
Division. 

(e) St-ate Laws. — 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. 

(f) Posting. — All employers shall keep posted complete copies 
of the labor provisions of this Code and all amendments thereto in 
conspicuous places accessible to employees and shall comply with 
all rules and regulations relative to posting which may from time 
to time be prescribed by the Administrator. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

1. A Code Authority, which shall be truly representative of the 
Industry, is hereby constituted to administer this Code. Such Code 
Authority shall be a body incorporated not for profit, to be known 
as Aluminum Code Authority Incorporated, and shall consist of : 

(a) Eleven individuals, each one of whom shall be connected with 
a member of the Association and shall represent a Commodity Divi- 
sion. Each Commodity Division shall elect in an equitable manner, 
which manner shall be subject to disapproval by the Administrator, 
its own representative except that the representative of Secondary 
Aluminum shall be elected by the Aluminum Research Institute. No 



126 

member of the Industry shall have more than four (4) representa- 
tives on the Code Authority. 

(b) One member who may be elected to represent the members 
of the Industry not members of the Association. 

(c) The executive secretary of the association, not a member of 
the Industry, shall be the executive secretary of the Code Author- 
ity, without vote. 

2. In addition to the membership as above provided there may 
be a representative or representatives, but in no case to exceed three 
(3) appointed by the Administrator to serve without vote and with- 
out compensation from the Industry for such terms as he may 
specify. 

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

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

5. The Code Authority mav from time to time appoint such sub- 
committees or designate such agencies, and may delegate to any 
of them such of its powers and duties, as it shall deem necessary 
or proper in order to effectuate the provisions and purposes of this 
Code, provided that nothing herein shall relieve the Code Authority 
of its duties or responsibilities under this Code and that such sub- 
committee or agency shall at all times be subject to and shall com- 
ply with the provisions of tliis Code, 

6. The Code Authority may adopt By-Laws and Rules and Regula- 
tions for its procedure. 

7. Each Commodity Division may separately prepare a supple- 
mental Code of Fair Competition or any amendments thereto, cover- 
ing the division and the Code Authority shall receive such supple- 
mental code or amendments and present same for approval oi the 
President. Neither the Association nor any of the other Commodity 
Divisions thereof shall have any voice in the preparation of such. 
Supplemental codes or such amendments. 

8. Each member of the Industry shall furnish to the Secretary 
of the Code Authority duly certified reports as necessary for the 
proper administration of this Code, at such time and in such form 
as may be specified by the Code Authority. Failure to furnish 
such reports shall be deemed a violation of this Code. Nothing in 
this Code shall relieve any member of the Industry from any exist- 
ing obligation to furnish reports to any governmental agency. 

9. A Commodity Division within the industry having an approved 
supplemental Code of Fair Competition applying to it, may, if its 



127 

Supplemental Code so provides, collect such statistics as referred 
to in the preceding paragraph and submit them in compiled form 
to the Code Authority. 

10. Any and all information furnished to the Secretary of the 
Code Authority unless otherwise specified by the furnishers thereof 
shall be confidential and shall be divulged to no one except to mem- 
bers of the Code Authority and then only in such summary, or coded 
form as will not disclose the private affairs oi any member. 

11. Any member of the Industry subject to the jurisdiction of this 
Code and receiving the benefits of the activities of the Code Author- 
ity shall pay to the Code Authority it.s equitable proportionate share 
of the expense of administering this Code. 

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 Cocle Authority, 
exercising reasonable diligence in the conduct of his duties hereunder, 
including the selection of any officer, agent or employee of the Code 
Authority, be liable to anyone for any action or omission to act 
under this Code except for his own wilful misfeasance or nonfeasance. 

13. If any action of the Code Authority, or any agency thereof 
is unfair or unjust or contrary to the public interest, and it is shown 
to the Administrator that a prima facie case of inequity is resulting 
therefrom, the Administrator may require the Code Authority to 
show cause, within fifteen (15) days, why its action should not be 
suspended, pending investigation. The Code Authority shall, within 
said fifteen (15) day period, present to the Administrator evidence, 
either in written or verbal form, in support of its action. Thereafter, 
if the Administrator is of the opinion that such inequity exists, he 
may suspend such action of the Code Authority pending his approval 
or disapproval of such action after such further investigation as the 
Administrator or the Code Authority deems necessary or advisable. 

Article VII — Cancelxation or ^Modification 

(a) This Code and all provisions hereof are expressly made sub- 
ject to the right of the President, in accordance with Section 10 (b) 
of Title I of the National Industrial Recovery Act, from time to time 
to cancel or modify any order, approval, license, rule, or regiilation 
as provided in Title I of said Act, and specifically to the right of 
the President to cancel or modify his approval of this Code or any 
conditions imposed by him upon his approval thereof. 

(b) This Code, except as to provisions required by the Act, may 
be modified on the basis of experience or changes in circumstances, 
such modifications to be based on application to the Administrator 
by the Code Authority or any representative group within the In- 
dustry in the event of failure to act, on the part of the Code Au- 
thority. Such modification to become effective upon approval of 
the Administrator after such notice and hearings as he shall specify, 
provided that nothing contained in this section, shall be construed 
to prevent any affected party from petitioning the President to exer- 
cise his powers in accordance with Section 10 (b) of the Act and 
Section (a) of this Article. 



128 
Article VIII — ^Monopolies, Etc. 

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. 

Aeticle IX — Trade Practices 

No member of the Aluminum Industry who produces aluminum 
ingot from virgin .aluminum alone or from virgin aluminum in 
combination Avith scrap which has not left his possession shall dis- 
criminate under like conditions in the prices charged for such ingot 
(whether charged to himself in case of fabrication prior to sale, or 
charged to others, in case of sale for fabrication) either between 
himself and controlled companies on the one hand and other pur- 
chasers on the other hand; or between such other purchasers. Such 
ingot to the extent it is available shall be sold to anyone whose 
credit warrants. Provided, that nothing herein contained shall be 
construed to prohibit such member from meeting prices quoted for 
imported aluminum in any specilic instance which shall be reported 
to the Secretary of the Code Authority within ten (10) days after 
a sale or quotation by such member at such a price, together with 
a statement that such price was made for the purpose of meeting 
such competition. Provided, further, that nothing in this Article 
shall impose any liability on such member by reason of quotations 
or sales made without intent to discriminate or made to meet foreign 
prices believed in good faith to have been quoted. 

2. The provisions of this Article shall not be subverted or evaded 
directly or indirectly, by any manufacturer resorting to special trade 
allowances, secret rebates, dealing with subsidiaries or controlled 
companies in this country or abroad, special allowances for scrap or 
materials returned, inordinate cash discounts, or subterfuges of any 
kind. Reports and data pertinent to the administration of this 
Article shall be furnished the Administrator on request, and any 
complaints of noncompliance may be referred to the Code Authority 
for consideration and appropriate action. 

3. The Code Authority shall study the operation of this Article 
and not later than six (6) months from the effective date shall report 
fully to the Administrator the results of such study. At the ter- 
mination of such six (6) months period the Code Authority, or if 
the Code Authority refuses to act, any affected party may recom- 
mend to the Administrator amendments to this Article which shall 
become effective, upon approval by the Administrator, after notice 
and public hearing, provided, however, that nothing in this para- 
graph contained shall be construed to prevent the Code Authority 
or any representative group, at any time, proposing amendments to 
this or any other provisions of this code in accordance with Article 
VII, Section (b). 

Article X — Effective Date 

This Code shall become effective on the fifteenth day following its 
approval by the President. 



129 

Article XI — Termination 

All provisions of this Code and any n^ edifications thereof shall 
cease to be in effect after June 16, 1935, or sooner, if the President 
shall by proclamation or the Congress shall by joint resolution 
declare that the emergency recognized by Section I of the Act has 
ended. 

Approved Code No. 470. 
Registry No. 1203-04. 

O 



Approved Code No. 471 
CODE OF FAIR COMPETITION 

FOR THE 

TRAILER MANUFACTURING INDUSTRY 

As Approved on June 26, 1934 



ORDER 



Code of Fair Competition for the Trailer Mantjfacturino 

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

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 654:3-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
rejDort and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved ; 

Provided^ however, that the provisions of Article VII, Section 5, 
insofar as they prescribe a waiting period between the filing with 
the Code Authority and the effective date of revised price lists or 
revised terms and conditions of sale be and they are hereby stayed 
pending my further order; and 

Provided^ further, that the provisions of Article VII, Section 6, 
insofar as it provides that pricey in no event shall be less than the 
individual member's cost, be and they are hereby stayed for a period 
of sixty (60) days and thereafter, unless, during such period good 
cause is shown why such stay should not be made permanent, and 
I by my further order otherwise direct; and 

Provided^ further, that the continued participation of the Trailer 
Manufacturers' Association in the Code Authority after thirty days 

70244° 657-155 84 (131) 



132 

from the effective date of this Code shall be contingent upon its 
amending its constitution and by-laws to the satisfaction of the 

Administrator. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 

C. E. Adams, 

Division Administrator. 

Washington, D.C, 

June 26, 1931^. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The proposed Code of Fair Competition for t?ie Trailer 
Manufactiirinf^ Industry was submitted to the Administrator on 
August 30, 1933, by the Trailer Manufacturers' Association, repre- 
6entin<i^ at least 80% of the volume of production and 70% of the 
number of manufacturers in the Industry. 

Tlie hearing was conducted in Washington on January 11, 1934, 
and the Code was revised during the recess of this hearing and 
submitted in its present form for approval. Every person who 
requested an appearance was properly heard in compliance with 
statutory and regulatory requirements. 

The Industry is nation-wide in scope of operation, with a market 
which includes large interests and the individual consumer. Figures 
submitted show a growth from 5 establishments in 1928, to 45 in 
1933, with an increase in employees from 1305 in 1928 to 2650 in 
August, 1933. Annual sales, on the other hand, have not kept pace 
w^tli the increase in employment, only a slight increase having oc- 
curred from a figure of $7,600,000.00 in 1928 to $8,500,000.00 in 1932, 
the last year for which annual sales reports are available. 

Article I. Purpose. — States the purpose of the Code. 

Article II. Definitions. — Accurately defines the specific terms ap- 
]~>licabi6 to the Trailer Manufacturing Industry, as used in this 
Code. 

Article III. Hours. — Maximum hours are limited to 40 hours in 
any 7 day period, except that during any 6 weeks in any 26 week 
period, overtime not exceeding 8 hours in any 7 day period is per- 
mitted. Watchmen shall not be permitted to work more than 56 
hours per week. Travelling salesmen, and executives, supervisors, 
and managers who earn not less than $35.00 per week, are not subject 
to any hourly limitation. The maximum hours shall not apply in 
cases of emergency maintenance or repair work involving breakdown 
or protection of life or property. 

Article IV. Wages. — The minimum wages for employees, whether 
actually compensated on a time rate, piecework or other basis, is at 
the rate of 400 per hour, with a minimum rate in the South and 
in communities of less than 50,000 population of 35^ per hour, except 
as otherwise provided. No office or clerical employee shall be paid 
less than $15.00 per week, except that in the South and in communi- 
ties of less than 50,000 population, the rate shall be not less than 
$14.00 per week. Office boj^s or girls may be employed ^t a rate not 
less than 80% of the minimum rate paid office emploj'ees. Equitable 
adjustment of all pay schedules above the minimum shall be re- 
ported by each employer. Provision is also made for the employing 
of handicapped persons. 

(133) 



134 

Article V. General Labor Provisions. — Provides that no person 
under 16 years of age shall be employed, and that no persons under 
18 years of age shall be employed at operations or occupations which 
are hazardous in nature or dangerous to health. The mandatory 
provisions respecting the rights of employees to organize and bargain 
collectively are included. Keclassifications of employees for pur- 
poses of subterfuge is prohibited. Employers shall provide for the 
safety and health of employees, observe State and Federal Laws and 
shall post copies of pertinent parts of this Code so as to be accessible 
to employees. 

Article VI. Organization., Powers and Duties of the Code Aio- 
thority. — Establishes a Code Authority consisting of 5 persons, 4 
of whom are to be selected by the Trailer Manufacturers' Association, 
and 1 to be selected by non-members of the Association, under a plan 
to be approved by the Administrator. In addition, the powers and 
duties of the Code Authority are set forth. 

Article VII. Trade Practices. — Sets forth fair trade practices for 
the Industry, and furthermore provides for the filing of open prices, 
effective not less than 10 days after filing. 

Article VIIL Export Trade. — Sets forth that no provision of this 
Code relating to prices or terms of selling, shipping or marketing 
shall apply to export trade or sales or shipments tor export trade. 

Article IX. Modi-flcution. — Sets forth that this Code and all pro- 
visions thereof are expressly made subject to the right of the Presi- 
dent in accordance with Sub-section (b) of Section 10 of the Act, 
from time to time to cancel or modify any order, approval, license, 
rule or regulation issued under said Act. Provision is made that 
amendments may be submitted by the Code Authority or in behalf 
of the Industry or subdivisions thereof, for approval by the 
Administrator. 

Article X. Monopolies. — Sets forth that no provision of this 
Code shall be so construed or applied as to permit monopolies or 
monopolistic practices, or to eliminate, oppress, or discriminate 
against small enterprises. 

Article XL Effecti've Date. — Sets forth the effective date of this 
Code as the fifteenth day after its approval by the President. 

findings 

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

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will 
provide for the general welfare by promoting the organization of 
industry for the purpose of cobperative action among the trade 
groups, by inducing and maintaining united action oi labor and 
management under adequate governmental sanctions and supervi- 
sion, by eliminating unfair competitive practices, by promoting the 
fullest possible utilization of the present productive capacity of 



135 

industries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasin<^ the consumption of 
industrial and agricultural products through increasing purchas- 
ing power, by reducing and relieving unemplojnnent, by improving 
standards of labor, and by otherwise rehabilitating industry. 

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

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

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

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

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrat or. 
June 26, 1934. 



CODE OF FAIE COMPETITION FOR THE TRAILER 
MANUFACTURING INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Recovery 
Act the following provisions are established as a Code of Fair Com- 
petition for the Trailer Manufacturing Industry, and shall be the 
standards of fair competition for such industry and shall be binding 
upon every member thereof. 

Article II — Definitions 

1. The term " Trailers " as used herein is defined to mean any 
commercial vehicle attached to or towed behind any motor vehicle, 
including, but without limitation, passenger automobiles, trucks and 
truck tractors, but excluding motorcycles, for carrying passengers 
or freight of any description. 

2. The terms " trailer manufacturing industry ", " trailer indus- 
try " or " Industry " as used herein are defined to mean the manu- 
facturing or assembling and sale by the manufacturer or assembler 
of Trailers and bodies therefor, and of component and repair parts 
and accessories by manufacturers or assemblers of trailers, and such 
related Branches or Subdivisions as may from time to time be in- 
cluded under the provisions of this Code by the President or the 
Administrator after such notice and hearing as he may prescribe. 

3. The term " Association " as used herein, means Trailer Manu- 
facturers' Association, a trade association at present having its office 
at 7 East 44th Street, New York City. 

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

5. The term " employer " a« used herein, means anyone for whose 
benefit such employee is so engaged. 

6. The term member of the industry " includes but without limi- 
tation, any individual, partnership, association, corporation or other 
form of enterprise engaged in the industry, either as an employer 
or on his or its own behalf. 

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. Population for the purposes of this Code 
shall be determined by reference to the 1930 Federal Census, and 
Trade Areas shall be defined according to the maps of the U.S. 
Department of Commerce. 

Article III — Hours 

1. No employee shall be permitted to work in excess of eight (8) 
hours in any twenty-four (24) hour period or forty (40) hours in 
any seven (7) day period, except as herein below otherwise provided. 

(136) 



137 

2. TIiG provisions of the above Section 1 shall not apply to: 

A. Traveling salesmen. 

B. Persons engaged in a supervisory, managerial or executive ca^ 
pacity, who earn not less than Thirty-five ($35.00) Dollars per week. 

C. AVatchmon, who shall not be permitted to work in excess of 
fift^'-six (50) hours in any one week. 

3. Enijiloyees may be permitted to work in excess of the maximum 
hours provided in Section 1 of this Article during any six (G) weeks 
in any twenty-six (20) weeks' period, providecl, that during such 
six (G) w^eeks, such overtime shall not exceed eight (8) hours in 
any seven (7) day period; and provided further, that compensation 
at a rate of at least one and one-half (IV2) times the regular rate 
shall be paid for hours worked in excess 01 eight (8) hours in any 
twenty-four (24) hour period, or forty (40) hours in any seven (7) 
day period. 

4. The maximum hours provided in Section 1 of this Article shall 
not apply to any employees engaged in emergency maintenance or 
emergency repair work involving breakdowns or protection of life 
or property, but compensation at a rate of at least one and one- 
hall" (11/2) times the regular rate shall be paid to such employees for 
all hours worked in excess of eight (8) hours in any twenty-four 
(24) hour period, or forty (40) hours in any seven (7) day period. 

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

6. No employer shall perform the functions of any employee, 
except in compliance with the provisions of this Article. 

7. No employer shall knowingly permit any employee to work for 
any time which when totalled with that already performed with 
another employer or employers, exceeds the maximum hours per- 
mitted herein. 

Abticle IV — ^Wages 

1. No employee, except as herein otherwise provided, shall be paid 
less than at the rate 6i forty (40^) cents per hour. 

(a) In communities of less than 50,000 population and in the states 
of North Carolina, South Carolina, Georgia, Alabama, Florida, 
Tennessee, Mississippi, and Louisiana, no employee shall be paid less 
than at the rate of thirty-five (35^) cents per hour. 

2. No office or clerical employee, except as herein otherwise pro- 
vided shall be paid less than at the rate of fifteen ($15.00) Dollars 
per week. 

(a) In communities of less than 50,000 population and in the states 
of North Carolina, South Carolina, Georgia, Alabama, Florida, 
Tennessee, Mississippi and Louisiana, no such office or clerical em- 
Ijloyee shall be paid less than at the rate of fourteen ($14.00) Dollars 
per week. 

3. Office boys or girls may be employed at not less than eighty (80) 
per cent of the minimum rate set forth in Section 2 of this Article 
IV; provided, that the number of such office boys or girls in the 
employ of any member of the industry shall not exceed five (5) per 
cent of the total number of office employees of such member, but at 



138 

least one such office boy or girl may be employed by any member of 
the industry. 

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

5. Each employer shall make an equitable adjustment of all pay 
schedules above the minimum and not later than thirty (30) days 
after the effective date of this Code, each employer in the industry 
shall report to the Administrator, through the Code Authority here- 
inafter provided for, the action taken by such employer since June 
IG, 1933 in adjusting the hourly wa^e rates for all employees receiv- 
ing more than the minimum rates. Such adjustment shall not reduce 
the hourly wage rate of any such employee. 

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

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 employer 
obtains from the State Authority designated by the U.S. Department 
of Labor a certificate authorizing his employment at such wages and 
for such hours as shall be stated in the certificate. Such Authority 
shall be guided by the instructions of the U.S. Department of Labor 
in issuing certificates to such persons. Each employer shall file with 
the Code Authority a list of all such persons employed by him. 

Article V — General Labor PR0^^SI0Ns 

1. No person under sixteen (16) years of age shall be employed 
in the Trailer Industry. No persons under eighteen (18) years of 
age shall be employed at operations or occupations which are 
hazardous in nature or dangerous to health. The Code Authority 
shall submit to the Administrator for approval within ninety (90) 
days from the effective date a list of such occupations. In any State 
an employer shall be deemed to have complied with tliis provision 
as to a^e if he shall have on file a valid 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. 

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

No employee and no one seeking emj^loyment shall be required 
as a condition of employment to join any company union or to 
refrain from joining, organizing, or assisting a labor organization 
of his own choosing. Employers shall comply with the maximum 
hours of labor, minimum rates of pay, and other conditions of 
employment approved or prescribed by the President. 

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



139 

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

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

G. All employers shall post in conspicuous places accessible to 
employees full copies of Articles III, IV and V, and any other 
labor provisions of this Code, in accordance with such rules and 
regulations as may be established by the Administrator. 

Article VI — OiiganizxVtion, Poavers and Duties or the Code 

Authority.^ 

1. There is hereby constituted a Code Authority consisting of five 
(5) persons, four (4) members thereof to be selected by the Trailer 
Manufacturers' Association by a majority vote of the members pres- 
ent at the annual meeting held on January 10, 1934, as adjourned, and 
at each annual meeting of said Association thereafter, so long as this 
Code shall be in effect, and the other member of said Code Authority 
to be selected by a fair method of selection, approved by the Adminis- 
trator by nonmembers of the Association who have assented to and 
are complyint^ with this Code. 

2. In addition to membership as hereinabove provided, there may 
be not more than three (3) additional members, without vote, to be 
appointed by the Administrator, to serve for such terms as may be 
specified by the Administrator. 

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

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

5. Nothing contained in this Code shall constitute the members of 
the Code Authority partners for any purpose. Nor shall this Code 
be construed to render any member of the Code Authority liable in 
any manner to anyone for any act of any other member, officer, agent, 
or employee of the Code Authority. Nor shall this Code be construed 

* See paragraph 5 of order approving this Code. 



140 

to render any member of the Code Authority, exercising reasonable 
(liligence in the conduct of his duties hereunder, liable to anyone 
for any action or omission to act under this Code, except for his own 
willful malfeasance or non-feasance. 

6. Members of the industry shall be entitled to vote for the Code 
Authority as above provided and participate in and share the bene- 
fits of the activities of the Code Authority by assenting to and com- 
plying with the requirements of this Code, and sustaining their pro 
rata share of the expenses of its administration as determined by 
the Code Authority, subject to approval by the Administrator, on 
the basis of volume of business, or such other factors as may be 
deemed equitable. 

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

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 
provide for the compliance of the members of the Industry with the 
provision of the Act. 

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

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

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

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

(f) To secure from members of the Industry an equitable and 
proportionate payment of the reasonable expenses of maintaining 



141 

the Code Authority and its activities, in conformity with Section 6 
of this Article VI. 

(g) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the Industry in their rehitions 
with each other or with other Industries and to recommend to the 
Administrator measures for industrial planning, including stabiliza- 
tion of employment. 

Article VII — Trade Practices 

The following practices are hereby declared unfair methods of 
competition and no member of the Industry shall engage in such 
practices. 

1. To make contracts, blanket orders, or other commitments guar- 
anteeing prices, except upon firm orders for definite quantities and 
definite times of delivery. 

2. To demonstrate Trailers to any customers or prospective cus- 
tomers for more than one period of seventy-two (72) hours ; or to loan 
or rent Trailers to any customer or prospective customer, except in 
accordance Avith the following requirements; (a) Such Trailers shall 
not be loaned or rented for more than one period of thirty (30) days; 
and, (b) There shall be an adequate rental charge based upon the 
value of the Trailer loaned or rented. 

3. To sell Trailers or permit them to be sold with a represented 
capacity more than the rated capacity of the axles of said trailers, 
having regard to the distribution of the load on the axles. No 
member of the industry shall represent the gross load which can be 
carried by the trailer axle or axles to be greater than the manufac- 
turer's rated capacity. These rated capacities shall be stated in 
specifications, and a complete list of axle sizes and rated capacities 
shall be filed with the Code Authority, which shall make the same 
available to all members of the industry as well as to customers 
or prospective customers. 

4. To sell products of the industry to any customer at net realized 
prices lower than are offered to all other customers of the same 
classification for the same quantity, grade, quality, or style, provided, 
however, that due allowance may be made for differences in trans- 
portation costs. The Code Authority shall recommend to the Ad- 
ministrator a fair and equitable classification of customers based 
upon services rendered. Upon approval of the Administrator, after 
such hearing as he may prescribe, such classification shall be adhered 
to by all members of the industry. If any application of the fore- 
going classifications should work unjust hardship upon any member 
of the industry or any customer, such member of the industry or 
customer may appeal to the Code Authority, which shall have power 
to make or require, subject to approval by the Administrator, such 
reclassification as justice demands. 

5. To fail to file with the Code Authority a net price list or a 
price list and discount sheet, as the case may be, individually pre- 
pared by the member of the industry showing his current prices, or 
prices and discounts, and terms of payment on products of the 
industry other than special trailers to the respective classes of cus- 
tomers established pursuant to Section 4 of this Article VII. The 



142 

Code Authority shall immediately send copies thereof to all other 
members of the industry. The Code Authority shall likewise make 
such filed prices available for inspection by customers or prospective 
customers of the classification or classifications affected. Revised 
price lists, with or without discount sheets, may be filed from time 
to time thereafter with the Code Authority by any member of the 
industry, to become effective upon a date specified by such member, 
which date shall be not less tlian ten (10) days after the filing of 
such revised prices with the Code Authority and copies thereof with 
notice of the effective date specified shall be immediately sent to all 
other members of the industry wdio thereupon may file, if they so 
desire, revisions of their price lists and/or discount sheets, which, 
if filed previous to such effective date, shall take effect upon said 
date. The Code Authority shall likewise make such revised filed 
prices available for inspection by customers or prospective customers 
of the classification or classifications affected. 

No member of the industry shall sell or offer to sell any product 
at prices, discounts or terms of payment other than as provided in 
the schedule of such member on nle with the Code Authority, as 
above provided,^ 

6. To fail to calculate prices for special trailers on the same basis 
as those for which prices are filed, which prices in no event shall be 
less than the individual member's cost. There shall be no require- 
ment for the publishing or filmg of list prices for special trailers.^ 

7. To 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 in any material par- 
ticular as to such product (including but without limitation capac- 
ity, quality, grade, substance, or size of such product). 

8. To imitate the trade marks, trade names, slogans, or other marks 
of identification of competitors, having the tendency or capacity to 
mislead or deceive purchasers or prospective purchasers. 

9. To make verbal or written warranties or " guarantees " which 
contain statements and representations respecting the product (in- 
cluding, but without limitation, capacity'', weight, method of construc- 
tion, and character of material used) having the tendency or capacity 
to mislead or deceive purchasers or prospective purchasers in some 
material particular. 

10. To induce or attempt to induce the breach of an existing con- 
tract between a competitor and his or its customer or source of sup- 
ply; or to interfere with or obstruct the performance of any such 
contractual duties or services, with the purpose or effect of unduly 
hampering, injuring or embarrassing competitors in their business. 

11. To publish or circulate unjustified or unwarranted threats of 
legal proceedings which tend to or have the effect of harassing com- 
petitors or intimidating their customers. 

12. Secretly to 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, or secretly to offer or 
extend to any customer any special service or privilege not extended 



* See paragraph 3 of order approving this Code. 

• See paragraph 4 of order approving this Code. 



143 

to all customers of the same class, for the purpose of influencing a 
sale. 

13. 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 ^uch employee, the principal of such 
agent, or the represented party, without the knowledge of such em- 
ployer, principal, or party. This Section shall not be construed to 
prohibit free and general distribution of articles commonly used for 
advertising, except so far as such articles are actually u.sed for com- 
mercial bribery as herein above defined. 

14. To make anj' installment or time sales of new or used Trailers, 
except on the following basis : 

a. Minimum payment at time of delivery of twenty-five (25%) 
per cent. In the computation of such minimum down payment, the 
value of used equipment accepted in trade, may be included. 

b. Terms shall not be granted beyond eighteen (18) months from 
date of delivery, including period of rental, if any. 

c. Interest shall be required on the deferred balance of the pur- 
chase price at the rate of not less than six per cent (6%) per annum. 

d. If the member of the industry shall have paid any insurance 
premium in behalf of the purchaser, such sums so paid shall be 
repaid to the member in addition to payments made on account of 
the purchase price and interest thereon. 

15. To make allowance for trade-in of any product of the in- 
dustry in excess of the then actual resale value thereof as may be 
determined on the basis of rules and regulations to be formulated 
by the Code Authority and a]:)proved by the Administrator. 

16. After sixty (60) daj^s from the date of approval of this Code 
to sell or ship products of the Industry on consignment except to 
wholly owned subsidiaries of the selling or shipping member of the 
Industry. If the application of this Section should work unjust 
hardship upon any member of the Industry or any customer, such 
member or customer may appeal to the Administrator who shall 
have power to grant such relief as justice may require. 

Article VIII — Export Trade 

1. 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. 

2. With the approval of the Code Authority and the Adminis- 
trator, an exception similar to that provided in Section 1 of this 
Article shall apply to any sale or shipment of materials actually used 
in manufacture for Export Trade. 

Article IX — Modifioation 

1. This Code and all provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of sub-section (b) of Section J^O of the Act, from time to time to 
cancel or modify any order, approval, license, rule, or regulation 
issued under said Act. 



144 

2. Such provisions of this Code as are not required to be included 
therein by the National Industrial Recovery Act, may, upon appli- 
cation duly made on behalf of the Industry and with the approval 
of the Administrator, be modified or eliminated. It is contemplated 
that from time to time supplementary provisions to this Code or 
additional Codes may be submitted in behalf of the Industry or vari- 
ous subdivisions thereof for approval. The Code Authority may 
recommend any amendment of this Code and upon approval thereof 
by the Administrator after such notice and hearing as he may 
prescribe, such amendment shall be binding as a part of this Code. 

Article X — Monopolies 

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

Article XI — Effective Date 

This Code shall become effective on the fifteenth day after its 
approval by the President, and shall continue in effect until June 
16, 1935, or until such time prior thereto when the President shall, 
by proclamation, or the Congress shall by joint resolution, declare 
that the emergency recogTiized by Section 1 of the Act has ended. 

Approved Code No. 471. 
Registry No. 142J0-01. 

o 



Approved Code No. 472 
CODE OF FAIR COMPETITION 

FOR THE 

WARM AIR REGISTER INDUSTRY 

As Approved on June 28, 1934 



ORDER 



AppRO^^[NG Code or Fair Competition for the Warm Air Register 

Industry 

An application haA^ng 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 Warm Air Register 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 Presidentof 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. 654-3-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, with the excep- 
tion of the proviso in Sub-Section b, of Section 1, of Article XI 
which is hereby deleted and provided that the provisions of Article 
VIII, Section 11, be and are hereby stayed for a period of sixty 
(60) days and thereafter, unless during such period good cause is 
shown why such stay should not be made permanent, and I, by my 
further order, otherwise direct. 

Hugh S. Johnson, 
AdTninistrator far Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Acting Division Administrator. 

Washington, D.C, 

June 28, 1034. 

70514° 607-164 34 1 (145) 



KEPOKT TO THE PRESIDENT 

The President, 

The White Bouse. 
Sir: This is a report on the Code of Fair Competition for the 
Warm Air Register Industry as revised after a public hearing, 
conducted thereon in Washington, D.C. on January 25th, 1934, in 
accordance with the provisions of the National Industrial Recovery 
Act. 

PHGVISIONS AS TO WAGES AND HOURS 

All employees shall be paid a minimum rate of forty cents per 
hour except office employees, and except bona fide apprentices who 
shall not exceed in number five percent of the total number of factory 
employees. Accounting, clerical and office employees may be paid 
at not less than fifteen dollars i^er week. Office boys and girls may 
be paid not less than eighty percent of this last rate and shall not 
exceed, in any calendar month, five percent of the total office em- 
ploj^ees of the employer except that any employer may employ at 
least two such persons. 

Handicapped workers may be employed, when properly certified, 
at light work, at a wage below the minimum. Female employees 
performing substantially the same work as male employees shall 
receive equal pay. Adjustment of wage rates above the minimum 
by all employers who have not heretofore made such adjustments 
shall be made forthwith and in no event shall hourly rates of pay 
be reduced. Report in full of all adjustments shall be made within 
sixty days. 

Forty hours shall be the maximum number of working hours for 
any week and eight hours for any day except that, exclusive of 
accounting, clerical or office employees, during not to exceed six 
weeks in any six months' period, forty-eight hours in one week 
shall be permissible providing one and one half times the normal 
rate of pay shall be paid for all time in excess of eight hours per 
day and forty hours per week. Those employed in executive and 
managerial capacity and service engineers, when and as long as 
their expenses are paid by their employers, who regularly receive 
thirty-five dollars or more per week and outside salesmen are ex- 
cepted from this provision. Employees engaged solely at mainte- 
nance and repair work, truckmen, firemen and engineers may work 
not more than nine hours in any one day, or forty-four hours in 
any one week, except that they may work not more than forty-eight 
hours per week during not more than six weeks in any six months' 
period. One and one-half times the normal rate of pay shall be 
paid for hours worked in excess of eight hours per day and forty 
hours per week. Watchmen are excepted and shall not be employed 
in excess of fifty-six hours in any one week, except watchmen in 

(146) 



147 

closed plants to whom this limitation shall not apply. Exception 
is also provided, as regards maximum hours, for cases of emer- 
gency or where restriction of hours of skilled workers would un- 
avoidably reduce production or limit work available to other work- 
ers. No employee shall be ]xu-mitted to work more than six days 
in any seven day period. No employer shall knowin<:^ly permit any 
employee to work for any time which, when totaled with that al- 
ready performed with another employer or employers exceeds the 
maxima permitted herein. 

ECONOMIC EFFECTS OF THE CODE 

The economic welfare of this industry largely depends upon build- 
ing activity. Warm Air Registers are almost exclusively used in 
conjunction with home heating installations although there is a 
snuill and perhaps increasing market in connection with ventilating 
and air-conditioning or cooling systems. 

Annual dollar sales have decreased about sixty-seven percent from 
1929 to 1932. Invested Capital has decreased about one-third during 
the same period, wnth a subsequent further ten percent reduction. 
The number of wage earners employed by this industry decreased 
about forty-four percent during the same period, with an increase 
from the 1932 low of about one-third the latter part of 1933. The 
Research and Planning Division estimates that the industry employed 
600 wage earners in 1929. 

No large further increase in employment is anticipated under the 
maximum hourly provision of the Code as, although there has been 
an increase in employment under the President's Reemployment 
Agreement, the industry is only working approximately thirty-nine 
and a half hours per week and any increase in employment will 
undoubtedly be mostly due to increased building activity, the source 
of approximately ninety percent of the industry's sales. The Code 
provides for the upward adjustment of wages above the minimum 
therefore the purchasing power of the industry's employees should 
be increased. Trade practice provisions of the Code are expected to 
remedy many of the evils that have been prevalent in the past within 
this industry. 

FINDINGS 

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

I find that : 

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



148 

ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agri- 
cultural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

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

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

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

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

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

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

Hugh S. Johnson, 

Adviirvistrator. 
June 28, 1934. 



CODE OF FAIK COMPETITION FOR THE WARM AIR 
REGISTER INDUSTRY 

Article I — Ptjrposes 

Te 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 Warm Air Register Industry and shall be 
the standard of fair competition for such industry and shall be 
binding upon every member thereof. 

Article II — Definitioxs 

1. The t^rm " Warm Air Register Industry " as used herein in- 
cludes the manufacturing and selling by manufacturers of air regis- 
ters, register faces, cold-air faces, floor borders, adjustable ventila- 
tors, intakes, wall frames, pipeless furnace gratings, manufactured 
of metal, for heating, cooling, or ventilating purposes, as defined in 
Appendix A, and such branches or sub-divisions thereof as may, 
from time to time, be included under the provisions of this Code. 

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

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

4. The term " member of the industry " includes any one engaged 
in the industry as above defined, either as an employer or on his or 
its own behalf. 

5. The term " Institute " as used herein means the National Warm 
Air Register Manufacturers Institute, a trade association. 

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

Article III — Hours 

Section 1. No employee, excluding accounting, clerical and office 
employees, shall be emploj^ed in excess of forty (40) hours in one 
week, or eight (8) hours in anv twenty-four (24) hour period, except 
that during any six (6) weeks in any six (6) months period em- 
ployees may be employed not more than forty-eight (48) hours per 
week, providing one and one-half times the normal rate of pay shall 
be paid for hours worked in excess of eight (8) hours per day and 
forty (40) hours per week. The foregoing limitations shall not 
apply to : 

(149) 



150 

(a) Those employed in executive and managerial capacity and 
service engineers when and as long as their expenses are paid by 
their employers, who regularly receive thirty-five (35) dollars or 
more per week. 

^b) Outside salesmen. 

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

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

(e) Cases of emergency such as the production of equipment or 
repairs for breakdown service, or where the restriction of hours of 
skilled workers would unavoidably reduce production or limit the 
work available to other workers. One and one-half times the normal 
rate of pay shall be paid persons embraced in this subsection (e) for 
hours worked in excess of eight (8) hours per day or forty (40) hours 
per week. 

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

Section 3. No employer shall knowingly j)ermit any employee to 
work for any time which, when totaled with that already performed 
with another employer or employers exceeds the maxima permitted 
herein. 

Section 4. No employees shall be permitted to work more than six 
(6) days in any seven (7) day period. 

Article IV — Wages 

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

(a) Accounting, clerical and office employees may be paid at not 
less than fifteen (15) dollars per week. 

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

(c) Bona fide apprentices, employ^ed under a system or course of 
training which, when completed, will make the apprentice a skilled 
mechanic, may be paid not less than eighty (80) percent of the mini- 
mum wages herein provided during the first six months of employ- 
ment. At no time shall new apprentices be admitted to apprentice- 



151 

ship bA' any employer when such action will bi-iiiu: their total number 
to more than five (5) jfercent of the total number of factory 
employees, of sucli em]iloyer. 

Section 2. This Article establishes a uiininiuui I'ale of pay which 
shall apply, irrespective of whether an em])loyee is actually com- 
pensated on a time rate, piece-work, or other basis. 

Section 3. The Code Authority may present for approval of the 
Administrator, •ifter notice and hearin<^, recommendations as to 
upward adjustments in mininunn Avaavs for specific localities. 

Sf.ciion 4. Equitable adjustment of compensation of employees 
receivinf»' more than the minimum rates of pay herein prescribed 
shall bo made by all employers who have not heretofore made such 
adjustments, and all employers shall within sixty (GO) days after 
approval of this Code, report in full to the Code Authority concern- 
ina' such adjustments whether made prior to or subsequent to such 
ai)proval; provided, however, that in on event shall hourly rates of 
pay be reduced. 

Section 5. Fenude employees performing; substantially the same 
work as male employees shall r^eceive the same rate of pay as male 
emjiloyees. 

Section 6. A i:)erson whose earninp; capacity is limited because of 
ao'e, physical or mental handicap or other infirmitA'. may be em- 
ployed on light Avork at a wage beloAV the minimum estal)lished by 
this Code, if the employer obtains from the State Authority, desig- 
nated by the United States Department of Labor, a certificate author- 
izing such person's employment at such Avages 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 Lal)or in issuing 
certificates to such persons. Each em]:)loyer shall file monthly with 
the Code Authority a list of all such persons employed by him, 
shoAving the Avages paid to, and the maximum hours of work for such 
employee. 

Section 7. Wages shall be exempt from any payments for pen- 
sions, insurance, or sick benefits other than those voluntarily paid by 
the Avage earners." or required by hiAv. Wages shall be paid at least 
semi-monthly and salaries at least at the end of every month. 

Section 8. The employer or his agent shall accept no rebates di- 
rectly or indirectly on such Avages nor give anything of A^alue or 
extend faA'ors to any person for the purpose of influencing rates of 
Avages or the working conditions of his emploA^ees. 

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 Avhich are haz- 
ardous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator witliin ninety (90) days after the effec- 
tive date of the Code a list of such operations or occupations. In 
any State an employer shall be deemed to have complied Avith this 
provision as to age if he shall have on file a certificate or permit duly 
signed by the authority in any State empoAvered to issue employment 

70511° 657-104—— 34 2 



152 

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 that : 

(a) Empk>yees shall have the right to organize and bargain col- 
lectively through representatires 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 he re- 
quired as a condition of employment to join any company union or 
to refrain from joining, organizing, or assisting a labor organization 
of his own choosing. 

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

Section 3. No employer shall reclassify employees or duties of 
occupations performed or engage in any other subterfuge for the 
purpose of ctefeating 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 Avithin six (6) months after 
the effective date of this Code. 

Section 5. No provision in this Code shall supersede any State 
or Federal law which imposes more stringent requirements on em- 
ployers as to age of employees, vv'ages, hours of vs'ork, or as to safety, 
sanitary or general working conditions, or insurance, or fire protec- 
tion, than are imposed by this Code. 

Section C. 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. 

Article VI — Administration 

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

Section 2. The Code Authority shall consist of three persons or 
such other number as may l)e approved, from time to time by the 
Administrator, duly elected by majority vote of the Industry. The 
Administrator, in his discretion, may appoint not more tlian three 
(3) additional members Avithout vote or expense to the industry to 
serve for such term or terms as he may specify. 

Seciton 3. The Code Authority shall have the folloAving further 
poAvers and duties to the extent permitted by the Act. 

(a) To insure the execution of the provisions of this Code and 
])rovide for the compliance of the industry Avith tlie })rovisions of the 
Act. 

(b) To adopt by-laAvs and rules and regulations for its ))rocedure 
and for the administration and for facilitatinii the enforcement of 
the Code. 



153 

(c) To appoint coniniitteos to carry out its diitios such as tlio 
f oUowiiio' : Administration, Compliance, Finance, liulustrial Rela- 
tions, Trade Kelations, Subdivisional, and sucli other conunittees as 
may be required. 

(d) To obtain from members of tlie industry sucli information and 
]-eports (sworn or unsworn as the Code Authority may specify) as 
arc required for the administration of the Code. No individual 
information, statistics or reports shall be disclosed to any other 
member of the industry or any other party except to such govern- 
mental agencies as may be directed by the Administrator. 

(c) To establish, if found desirable, classifications, dimensional 
standards, and quality and/oi- performance s})eci{ications for prod- 
ucts of the industry. 

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

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

(h) To cooperate with the Adnnnistrator in regulating the uso 
of any N.R.A. insignia. 

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

(j) To appoint a trade practice committee Avhicli shall meet with 
the trade practice committees appointed under such other codes as 
ma_y be related to tlie industry for the purpose of formulating fair 
trade practices to govern the relationships between production and 
distril)iition employees under this Code and under such others to 
the end that such fair trade practices may be proposed to the Admin- 
istrator as amendments to this Code and such other codes. 

Section 4. The Code Authority shall cause to be formulated an 
accounting system and methods of cost finding and/or estimating 
capable of use by all members of the industry. After such system 
and methods have been formulated and aj^proved by the Admin- 
istrator, full details concerning them shall be made available to all 
members. Thereafter all members shall determine and/or estimate 
costs in accordance with the princij^les of such methods. 

Section 5. In order that the Code Authority shall at all times be 
truly representative of the industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe such 
hearings as he may deem proj^er ; and thereafter if he shall find the 
Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an 
appropriate modification in the method of selection of the Code 
Authority. 

Seciton G. The Institute or any otiier trade association, directly 
or indirectly participating in the selection or activities of the Code 
Autliority shall (1) impose no inequitable restrictions on member- 



154 

ship, and (2) submit to the Administrator true copies of its articles 
of association, by-laws, regulations, and any amendments when made 
thereto, together ^Yith such other information as to membership, or- 
ganization and activities as the Achninistrator maj^ deem necessary 
to effectuate the purposes of the Act. 

Section 7. In addition to the information required to be sub- 
mitted to the Code Authority, all or an}^ of the persons subject to 
this Code shall furnish such statistical information as the Adminis- 
trator may deem necessary for the purposes recited in Section 
(3) (a) of said Act to such Federal and State agencies as the 
Administrator may designate ; nor shall anything in this Code relieve 
any person of any existing obligation to furnish reports to Govern- 
ment agencies. 

Section 8. It being found necessary, in order to support the 
administration of this Code and to maintain the standards of fair 
competition established by this Code and to effectuate the policy of 
the Act, the Code Authority is authorized, subject to the approval 
of the Administrator: 

(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 wdiich 
shall bo held in trust for the purpose of the Code; 

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

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

Section 9. Only members of the industry complying with the 
Code and contributing to the expenses of its administration as pro- 
vided in Section 8 hereof shall be entitled to participate in the selec- 
tion of the members of the Code Authority or to receive the benefit 
of its voluntary activities or to make use of any emblem or insignia 
of the National Recovery Administration. 

Section 10. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall this Code be consti-ued to render any member of the Code 
Authorit}^ liable in anj^ manner to anyone for any act of any other 
member, officer, agent or emploj^ee of the Code Authority. Nor 
shall this Code be construed to render any member of the Code 
Authority, exercising reasonable diligence in the conduct of his 
duties hereunder liable to anyone for any action or omission to act 
under this Code, except for his own willful misfeasance or non- 
feasance. 

Section 11. The Code Authority may from time to time as con- 
ditions in the industi'y \Yai'rant consider proposals for amendments 
or modifications of this Code and may make recommendations thereon 



I 



155 

to tho Administrator, which amendments or modifications will 
become effective as part of the Code upon approval by the Admin- 
istrator after such notice and hearino- as he may specify. 

Section 12. If the Administrator shall determine that any action 
of the Code Authority or any agency thereof may be unfair or 
unjust or contrar}' to the public interest, the Administrator may 
require that such action be suspended to afford an opportunity for 
investigation of the merits of such action and further consideration 
by the Code Authority or agency pending final action which shall 
not be effective unless the Administrator approves or unless he shall 
fail to disapprove after thirty (30) days' notice to him of intention 
to proceed with such action in its original or modified form. 

Article VII — General Provisions 

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

Section 2. This Code, except as to provisions required by the xVct, 
may be modified on the basis of experience or changes in circum- 
stances, such modification to be based upon application to the Ad- 
ministrator and such notice and hearing as he shall specify, and to 
become effective on approval of the President and/or Administrator. 

Article VIII — Trade Practices 

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

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

Section 2. Misrepreseriiation or False or Mlsleadmcf Adcejils- 
ing. — The making or causing or permitting to be made or published 
any materially false, inaccurate or deceptive statement hy way of 
advertisement or otherwise, whether concerning the grade, quality, 
quantity, substance, character, nature, origin, size, finish or prepara- 
tion of any product of the industry, or the credit terms, values, 
policies or services of any member of the industry, or otherwise, hav- 
ing the tendency or capacit}^ to mislead or deceive customers or pros- 
pective customers. 

Section 3. Convniercml Bribery. — No member of the industry shall 
give, permit to be given or directly offer to give, anything of value 
for the purpose of influencing or rewarding the action of any em- 
ployee, agent or representative of another in relation to the business 



156 

of the employer of such employee, the principal of such agent or the 
represented party, without the Imowledge of such employer, prin- 
cipal or party. This shall not be construed to prohibit free and 
general distribution of articles commonly used for advertising except 
BO far as such articles are actually used for commercial bribery as 
hereinabove defined. 

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

Section 5. Secret Rebates. — Withholding from or inserting in any 
invoice a false record, wholly or in part, of the transaction repre- 
sented on the face thereof, and the payment or allovvance of secret 
rebates, secret refunds, secret credits, unearned discounts (whether 
in the form of money or otherwise), or the extension to certain pur- 
chasers of prices, services or privileges not extended to all purchasers 
under like conditions. 

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

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

Section 8. Threats of Laiv jSuits. — Publishing or circulating un- 
justified or unwarranted threats of legal proceedings which tend to 
or have the effect of harassing competitors or intimidating their 
customers. 

Section 9. Espionage of Co7npetitors. — Securing confidential in- 
formation from a competitor concerning his business by a false or 
misleading statement or representation, by a false impersonation of 
one in authority, by bribery, or by any other unfair method. 

Section 10. Piracy of Trade Marks and Trade Names. — The imi- 
tation of a trade mark, trade name, slogan, or the other marks of 
identification of a competitor, having the tendency and capacity to 
confuse, mislead or deceive purchasers in reference to origin of the 
products. 

Section 11. No employer shall sell or exchange any product of the 
industry manufactured by him, at a price or upon terms and condi- 
tions which will result in the purchaser paying for the goods 
received less than the lowest allowable cost thereof to the seller, 
determined in accordance with the systems and methods of costing 
formulated under the provisions of Section 4 of Article VI; pro- 
vided, however, that dropped lines, distress merchandise or seconds 
may be disposed of by any employer, at any price and on any 
terms and conditions, but only if such employer, not less than two 
weelis before such disposal, has filed with the Code Authority, a 
statement in writing, setting forth the fact of, and reasons for, such 
proposed disposal; and provided further, that a member of the 
industry selling or wishing to sell below his own allowable cost to 
meet the competition of a competitor whose allowable costs are 



157 

lower, may do so provided that he has first so reported to the Code 
Authority and in such report has cited the facts of the competitijon 
which caused him to take such action.^ 

Section 12. Otlicr Unfair Practices. — Nothing in this Code shall 
limit the effect of any adjudication by the Courts or holding by the 
Federal Trade Commission on complaint, finding, and order, that 
any practice or method is unfair, providing that such adjudication 
or holding is not inconsistent with any provision of the Act. 

Article IX — Price Guarantee 

Section 1. The sale of the products of the industry shall be on 
a calendar quarterly basis, at the prices effective on date of ac- 
ceptance of order in that calendar quarter for shipment in that 
calendar quarter. Any orders accepted by a member of the indus- 
try in a given quarter for shipment in a later quarter shall be in- 
voiced at the prices effective on date of shipment, and the acceptance 
and/or invoicing of orders on any other basis shall be an unfair 
method of competition, except that : 

(a) Orders which include specifications of styles and types, sizes, 
quantities and finishes for products of this industry, for specific 
heating, ventilating and/or cooling installations, and in which the 
name of the owner and location of projects in which such products 
will be installed, are given in the order, may be accepted for de- 
livery at the prices in effect at the date the order is placed for 
delivery within three (3) months after the date such order is placed. 

(b) Orders described in Section 1, paragraph a are not to be sub- 
ject to cancellation or change in types, styles or materials without 
adequate compensation for material used and work performed. 

(c) If complete specifications for any portion of the order are 
not received within three (3) months from the date of the order, 
then that portion of the order for which specifications have not been 
given within three (3) months shall be invoiced at prices in effect 
at the time complete sj^ecifications are received. 

(d) Members of the industry shall publish separate schedules of 
quantity discounts covering multilouvre registers, face plates and/or 
wall frames when such products are required for one building project 
(other than private residences) the location and owner of which are 
specifically stated and when the total of the list prices of the products 
involved is not less than Five Hundred Dollars ($500.00). 

Article X — Defintitons of Purchasers 

Section 1. A " Manufacturer " or " member of the industry " in- 
cludes anyone engaged in the industry, either as an employer or on 
his or its own behalf, as defined in Section 1, Article II. 

Section 2. A " Jobber " is defined as anyone who purchases the 
products from manufacturers of this industry for resale to others 
than consumers, for further resale by those to whom the jobber sells; 
except that all Warm-Air Furnace Manufacturers shall be classified 
as jobbers. 

^ See paragraph 2 of order approving this Code. 



158 

Seotion 8, A " Dealer " is defined as one who purchases the prod- 
ucts from manufacturers of this industry for resale to the consumer 
and/or for installation in conneoiion with such sale. 

Section 4. If any application of these definitions should work a 
hardship upon any member of the industry, or any customer, such 
member of the industry, or customer, may appeal to the Code Au- 
thority, which shall have power to ^ant such relief as Justice may 
require subject to the approval of the Administrator. If the Code 
Authority should deny relief or should fail to take action upon such 
application within fourteen (14) days after the receipt of same, such 
member or customer may appeal to the Administrator who shall have 
power to grant relief. 

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

Section 1. (a) Within fourteen (14) days after the effective date 
of this Code each member of the industry shall publish his prices, 
terms, and conditions of sale on all products, with the prices, terms, 
and conditions of sale affecting each such class of trade in the ter- 
ritory to which such prices, terms, and conditions of sale apply. 
Coincident with such publication, each member of the industry shall 
file with the Code Authority and the Code Authority shall immedi- 
ately distribute to all members of the industry, a complete schedule 
of such prices, terms, and conditions of sale which shall also be made 
available to all members of the trade to which it is applicable. 

(b) Provided, however, that any user of registers whose average 
purchases of products of the industry as defined in this Code during 
the preceding four years exceeded 50,000 pieces per year may be 
sold at prices, discounts, or terms different from those shown on the 
schedule and no schedule need be published covering such users.^ 

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 
Buch changes shall become effective immediately upon such filing 
unless and until the Code Authority shall designate periods within 
which any such changes shall become effective, subject to the ap- 
proval of the Administrator, but in no case shall any such period 
exceed six (6) days after the date of the filing of the change. Copies 
of all changes filed shall be immediately distributed by the Code 
Authority to the members of the industry. Information on such 
price changes shall be available to the trade to which it is applicable, 
on the effective date of such change and each member shall coinci- 
dentally 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 meet the said change on the effective date 
thereof, such member may file with the Code Authority such changes 
in his prices, terms, and conditions of sale as may be required to meet 
the change filed by the other member. Changes so filed shall become 

* See paragraph 2 of order approving this Code. 



159 

effective on the same date as the efTective date of the change of the 
moniber first filing as aforesaid, or if such change lias 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, forms, and conditions of sale then in effect and published 
in the manner described herein. Each member of the industry shall 
have the right, individually, to publish new prices, terms, and condi- 
tions of sale, from time to time, as herein provided. 

Article XII — Terms and Cash Discounts 

Section 1. In order that the terms of this industry shall be uni- 
form ; no member will consign any merchandise on any basis and all 
existing consignment arrangements shall terminate on or before sixty 
(60) days after the effective date of the Code; shall not redate any 
part of any invoice. The terms in this industry shall be as follows: 

(a) Two (2) per cent discount ten (10) days; net due thirty (30J 
days from date of invoice; optional two (2) per cent discount, tentn 
of month proximo. 

(b) On orders for a total of five hundred (600) or more registers, 
register faces, metal cold-air faces, borders, intakes, wall frames, 
pipeless furnace gratings, adjustable ventilators, placed between 
January first and April first for one shipment to one destination, 
terms are as follows : 

July first dating: Net du« August first, subject to cash discount 
of two (2) per cent on July 10th. 

Prepayment discount of one half of one (1) per cent per month 
from date of pajanent to July first. 

(c) Any sales at other than the cash discounts and terms described 
in this section shall be considered as an unfair trade practice and is 
a violation of the Code. Adjustable Ventilators and Double Head 
Registers or Intakes are to be considered each as two pieces for 
quantity and freight allowance. 

Sectton 2. The Code Authority is authorized to establish a credit 
information service for the benefit of the industry and, after due 
notice, to require that every member of the industry report monthly 
the names, amounts due, and dates of shipments to any purchasers 
of the products of the industry who have failed to pay for any 
product of this industry within ninety (90) days from the date of 
maturity. This information shall be immediately distributed to 
the trade classification of the industry from which it was received. 

Article XIII — Monopolies, Etc. 

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

Article XIV 

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



APPENDIX A 

DEnNITIONS OF THE PRODUCTS OF THE INDUSTRT 

Register : A register is a metal covering of oi^en design, attached to movable 
valves or shutters usually placed in the wall, floor, or ceiling of a room for 
admitting or excluding warm or cold air or for controlling ventilation. The 
term " Register " includes the face plate of cast or wrought metal, sometimes 
ornamental, to which is attached movable valve, valves or shutters and a device 
for operating the same. 

Register face: A metal covering of open design for air inlet or outlet having 
an opening for operating lever, and screw holes for attaching to valve, valves 
or shutters to make a register. It may be made of east or wrought metal and 
may be of plain or ornamental design. It has no attachments or means to 
control flow of air. 

Cold air face : A metal plate having openings for the passage of air, designed 
to be installed in the floor, to pennit the cold air to return to the furnace 
or to permit the warm air to return to the furnace when the system is used 
for cooling. 

Floor border: A metal frame, usually installed in an opening made in the 
floor. It has interior flanges so that either a register, register face, or grille 
may be set thereon. 

Intake: A metal covering for air inlet or outlet with openings therein de- 
signed to permit the delivery of air from the furnace, or the return of air 
to the furnace, whether such system be used for heating only or heating and 
cooling. 

Pipeless furnace grating: Pipeless furnaces are warm-air furnaces installed 
with one warm-air pipe running A^ertically directly to the room above the 
furnace. A pipeless furnace grating is the grille usually installed in the floor, 
to cover the warm-air pipe opening of such furnaces and is usually furnished 
with a round or square collar on its bottom siU'face, to which the warm-air 
pipe of the warm-air furnace may be connected. 

Wall frame : A metal frame to be inserted in an opening in the wall, secured 
thereto, and to which a grille or register may be attached by means of screws 
or otherwise. 

Adjustable ventilator: Two registers or register faces joined by intervening 
adjustable telescoping metal boxes or tubes to provide an opening through 
which air may be circulated from one room to another. 

Double head register: Two metal baseboard or wall registers usually set 
on opposite sides of wall with connecting box designed to regulate flow of 
air (inlet or outlet). It may be made of cast or wrought metal and be of 
plain or ornamental design. 

Approved Code No. 472. 
Registry No. 1118-12. 

(160) 
O 



Approved Code No. 473 
CODE OF FAIR COMPETITION 

FOR THE 

WOVEN WOOD FABRIC SHADE INDUSTRY 

As Approved on June 28, 1934 



ORDER 



Code of Fair Competttion for the Wo^-en "Wood Fabric Shade 

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

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Pres- 
ident, including Executive Order :^6543-A, dated December 30, 1933, 
and otherwise; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act ; and do hereby order that said Code of Fair 
Competition be and it is hereby approved. 

Hugh S. Johnson, 
Adrndnistrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Acting Division Administrator. 

Washington. D.C, 

Jwne 28, 193^. 

70954° 657-169 34 (161) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Woven Wood Fabric Shade Industry, the hearing having been con- 
ducted in Washington, D.C., on May 14, 1934, in accordance with the 
provisions of the National Industrial Recovery Act. 

PROVISIONS ON HOURS AND WAGES 

The maximum hours for employees provided in this Code are 
forty (40) hours per week and eight (8) hours per day. When 
production demands it, a tolerance of eight hours per week is allowed, 
provided this tolerance shall be allowed for not more than six weeks 
in any six months' period, and one and one-half times the normal 
hourly rate is paid for all nours in excess of forty per week. 

Employees engaged in emergency maintenance and emergency 
repair work are excepted from hourly limitations and are allowed a 
one and one-half overtime rate of pay. Engineers and firemen are 
permitted to work not in excess of forty-five (45) hours in any one 
week or nine hours in any one day. Watclimen are permitted to 
work not in excess of fifty-six (56) hours in any one week. The 
usual exemption is granted to executive and supervisory employees 
regularly receiving $35.00 or more per week, and to outside salesmen. 

The minimum wage provided is thirty-five cents per hour for male 
employees and thirty-two and one-half cents per hour for female 
employees. 

CHILD LABOR 

The minimum age provided in this Code is 16 years: however it 
is provided that no persons under 18 years of age may be employed 
except as office boys or office girls. 

ECONOMIC EFFECT OF THE CODE 

This Industry has gradually declined since 1929. Employment 
has declined 35%; sales have declined 65%; and total pay rolls 
have declined 59%. 

The products of this Industry are used on open porches and inside 
of factory windows. In recent years the trend in residential con- 
struction has been toward the use of enclosed porches, thereby 
decreasing the prospective field for the jDroduct in that respect. 
Increased demand, however, may be expected when there is an 
increase in general industrial activity involving factory maintenance 
and construction. 

(162) 



I 



1C3 

Competition from a similar product imported from Japan is a 
serious problem. 

It is estimated that the minimum Avage rate provided by the Code 
will increase wafjos from 10% to 15% in the case of male workers 
and approximately 2/5% in the case of female workers over those 
paid prior to June 16, 1933. 

FINDINGS 

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

I find that: 

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

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

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

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

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

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

For these reasons, therefore, this Code has been approved. 
Eespectfully, 

Hugh S. Johnson, 

Adniinist}'ator. 
June 28, 1934. 



CODE OF FAIR COMPETITION FOR THE WOVEN WOOD 
FABRIC SHADE INDUSTRY 

Article I — Purpose 

To effect the policies of Title I of the National Industrial Recovery- 
Act, this Code is submitted as a Code of Fair Competition for the 
Woven Wood Fabric Shade Industry and upon approval its provi- 
sions shall be the standards of fair competition for such Industry 
and be binding upon every member thereof. 

Article II — Definitions 

Section 1. The term " Industry " as used herein shall mean the 
manufacture of woven wood fabric shades. The term " woven wood 
fabric shade " is defined as a porch or window shade made of wood- 
elats woven together with cord and capable of being raised or 
lowered, but not so constructed that the slats thereof may be tilted. 

Section 2. The term " member of the Industry " as used herein 
includes, but without limitation, any individualj partnership, asso- 
ciation, corporation, or other form of enterprise engaged in the 
industry, either as an employer or on his or its own behalf. 

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

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

Section 5. The term " association " as used herein means the 
Woven Wood Fabric Shade Association. 

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

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

Article III — Hours 

Section 1. Maximum Hours. No employee shall be permitted to 
work in excess of forty (40) hours in any one week or eight (8) 
hours in any twenty-four (24) hour period, except as herein other- 
WLsc provided. 

(a) Employees engaged as engineers or firemen may be permitted 
to work not in excess of forty-five (45) hours in any seven (7) day 
period or nine (9) hours in any twenty-four (24) hour period. 

(b) Watchmen may be permitted to work not in excess of fifty- 
six (5G) hours in any seven (7) day period. 

(1G4) 



165 

(c) To provide for peak periods, employees may be permitted to 
work a maximum of forly-ei<i;ht (48) hours in any seven (7) day 
period for not more than six such seven (7) day periods in any six 
(6) months' period, provided, however, that ail hours worked in 
excess of eight (8) hours in any twenty-four (24) hour period or 
forty (40) hours in any seven (7) day period shall be compensated 
for at not less than one and one-halt (IVii) times the normal rat© 
of pay. 

k>ECTioN 2. Hours for Clerical and Office Employees. No person 
employed in clerical or office work shall be permitted to work in 
excess of forty (40) hours in any seven (7) day period or eight 
(8) hours in any twent3'-four (24) hour period. 

Section o. Exceptions as to Hours. The provisions of this Article 
shall not appl}' to traveling salesmen, or to employees engaged in 
emergency maintenance or emergency repair work, or to persons 
employed in a managerial or executive capacity who earn regularly 
thirty-tive dollars (iiSSa.OO) per week or more; provided, however, 
that emplo3^ees engaged in emergency maintenance and emergency 
repair work shall be paid at least one and one-half (1V1>) times their 
normal hourly rate for all hours worked in excess of eight (8) hours 
in any one day and forty (40) hours in any one week. 

Section 4. Employment by Several Employers. No employer 
shall knowingly permit an employee to work for any time which, 
when added to the time spent at work for another employer or 
employers in this Industry (or otherwise), exceeds the maximum 
permitted herein. 

Section 5. Standard Week. No employee shall be permitted to 
work more than six days in any seven day period. 

Ap.ticle IV — Wages 

Section 1. Minimum Wages. No male employee shall be paid at 
less than the rate of thirty -live cents (35^) per hour and no female 
employee shall be j)aid at less than the rate of thirty-two and one- 
half cents (321/2^) per hour; provided, however, that female em- 
ployees performing substantially the same work as male employees 
shall receive the same rates of pay as male employees, and provided 
further that when female employees are engaged to replace male 
employees they shall be paid at least the same rate as that paid to 
the male employees whom they replace. 

Section 2. Office and Clerical Employees. No clerical or office 
employee shall be paid in any pa^ period less than at the rate of 
sixteen dollars ($16.00) per week in any city of 500,000 population 
or over, or in the immediate trade area of such city ; or less than at 
the rate of fifteen dollars ($15.00) per week in any city of between 
250.000 and 500,000 population, or in the immediate trade area of 
sucn city; or less than at the rate of fourteen dollars ($14.00) per 
week in an}^ city or place of 250,000 population or less. 

Section 3. Wages above Minimum. Employers shall not reduce 
the hourly or full time weekly earnings of emplo3^ees whose rates of 
wages are now in excess of the minimum rate of wages (notwith- 
standing that the number of hours worked in such emplo3'ment may 
be hereby decreased), and where in any case an emx^loyer has not 



166 

increased the rates of wages for such employees prior to the effective 
date of this Code by an equitable readjustment of all wage rates such 
employer shall readjust all such wage rates in such an equitable 
manner as will preserve wage differentials reasonably proportionate 
to those in effect prior to the effective date of this Code. Within 
thirty (30) days after the effective date of this Code, each employer 
shall report to the Code Authority, for submission to the Adminis- 
trator, the adjustments made pursuant to this Section. 

Section 4. Piecework Compensation — Minimum Wages. Mini- 
mum rates of pay specified in this Code shall apply, irrespective of 
whether an employee is actually compensated on a time rate, piece- 
work, or other basis. 

Section 5. Manner of Payment. All employers shall make pay- 
ment of all wages due in lawful currency or by negotiable check there- 
for, payable on demand. Wages shall be paid at least once each two 
(2) weeks. These wages shall be exempt from any payment for 

Eensions, insurance, or sick benefits other than those voluntarily paid 
y employees. Employers or their argents shall not accept, directly 
or indirectly, rebates on such wages or give anything of value nor 
extend any favors to any person for the purpose of influencing rates 
of wages or working conditions of their employees. 

Article V — General Labor Provisions 

Section 1. Cliild Labor. No persons under eighteen (18) years 
of age shall be employed in the Industry except as office boys or girls. 
No person under sixteen (16) years of a,ge shall be employed in the 
Industry in any capacity. In any State any employer shall be 
deemed to have complied with this provision as to age if he shall 
have on file a certificate or permit, duly signed by the Authority in 
such State empowered to issue employment or age certificates or 
permits, showing that the employee is of the required age. 

Seciton 2. Provisions from the Act. 

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

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

(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. Evasion Through Subterfuge. No employer shall re- 
classify employees or duties of occupations performed or engage in 
any other subterfuge so as to defeat the purposes or provisions of the 
Act or of this Code. 

Section 4. Standards for Safety and Health. Every employer 
shall provide for the safety and health of emDloyecs during the hours 
and at the places of their employment. Standards for safety and 



167 

health shall bo submitted by the Code Authority to the Adminis- 
trator within six months after the effective date of the Code. Upon 
approval by the Administrator, after such notice and hearing as he 
may prescribe, such standards shall constitute integral i)arts of this 
Code. 

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

Section 6. Posting. All employers shall keep ])osted complete 
copies of this Code in conspicuous places accessible to all employees. 
Every member of the Industry shall comply with all rules and regu- 
lations relative to the posting of provisions of this Code of Fair 
Competition which may from time to time be prescribed by the 
Administrator. 

Section 7. Evasion Through Discharging and Rehiring or Replac- 
ing Employees. No employee now employed at a rate in excess of the 
minimum shall be discharged and reemployed or replaced by another 
at a lower rate for the purpose of evading the provisions of this Code. 

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

Article VI — Organization, Powers and Duties of the Code 

Authority 

organization and constitution 

Section 1. A Code Authority is hereby established to be selected 
in the following manner: 

(a) The Code Authority shall consist of five (5) individuals or 
such other number as may be approved from time to time by the 
Administrator, to be selected as hereinafter set forth. 

(b) Four members of the Code Authority shall be selected by the 
Association from among its membership. The Association not later 
than ten (10) days after the approval of this Code shall notify all 
members of the Industry known to it, or who can be ascertained after 
a diligent search, who are non-members of the Association, if there 
be any such, that on a specific day, not later than twenty (20) days 
after such notice shall have been given, one member of the Code Au- 
thority will be selected by non-members of the Association. The 
methed of nomination of the representative of the non-members shall 
be approved by the Administrator. Notice of such election shall 
specify that such non-member may be selected by non-members of 
the Association either present, or by proxy, or by letter ballot. 

Section 2. In addition to membership as above provided, there 
may be not more than three members, without vote, to be known as 
Administration members, to be appointed by the Administrator to 
serve for such terms as he may specify. 

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, 



168 

and (2) submit to the Administrator true copies of its articles of 
association, by-laws, regulations, and any amendments when made 
thereto, together with such other information as to membership, 
organization, and activities as the Administrator may deem neces- 
sary to effectuate the purposes of the Act. 

Section 4. In order that the Code Authority shall at all times be 
truly representative of the Industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe 
such hearings as he may deem proper: and thereafter if he shall 
find that the Code Authority is not truly representative or does not 
in other respects comply with the provisions of the Act, may require 
an appropriate modification 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 Authority, 
exercising reasonable diligence in the conduct of his duties here- 
under, be liable to anyone for any action or omission to act under 
this Code, except for his own wilful misfeasance or nonfeasance. 

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 for a period of not to 
exceed thirty (30) days, to afford an opportunity for investigation 
of the merits of such action and further consideration by such Code 
Authority or agency pending final action, which shall not be effective 
unless the Administrator approves or unless he shall fail to dis- 
approve after thirty (30) days' notice to him of intention to proceed 
with such action in its original or modified form. 

POWERS AND DUTIES 

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 
provide for the compliance of the Industry with the provisions of 
the Act. 
I (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. The 
receipt and compilation of such information and reports shall be 
performed by a person or persons wdio are in no way connected with 
any member of the Industry. Such infonnation shall be held confi- 
dential and shall not be open to inspection except as to totals of the 
industry. 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 noth- 



169 

inf^ in this Code shall relieve any member of the Industry of any 
existin*^ obli<Tations to furnish reports to any Government agency. 
No individual report shall be disclosed to any other member of the 
Industry or any other party except to such other Governmental 
agencies as may be directed 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 tlie 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 membei'S of the industry. 

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

(a) To incur 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, which shall 
be held in trust for the purposes of the Code ; 

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary; 

(x) An itemized budget of its estimated expenses for the fore- 
going purposes, and 

(xx) 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 collect equitable 
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) Each member of the industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Author- 
ity determined as hereinabove pixjvided and subject to rules and reg- 
ulations pertaining thereto issued hj the Administrator. Only 
members of the Industry complying with the Code and contributing 
to the expenses of its administration as hereinafter provided 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 emblem or insimia of the N.R.A. 

(3) The Code Authority shall neither incur nor pay any obliga- 
tion in excciss of the amount thereof as estimated in its approved 
budget, except upon approval of the Administrator; and no subse- 
quent budget shall contain any deficiency item for expenditures 
in excess of prior budget estimates except those which the 
Administrator shall have so approved. 

(g) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provision^ 
to govern members of the industry in their relations with each other 
or \yith other industries; measures for industrial planning, and 
stabilization of employment; and including modifications of this 



170 

Code which shall become effective as part hereof upon approval by 
the Administrator after such notice and hearings as he may specify. 

(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 
employers under this code and under such other codes to the end 
that such fair trade practices may be proposed to the Aclmiinstrator 
as amendments to this code and such other codes. 

(i) To provide appropriate facilities for arbitration between mem- 
bers of the Industry and, subject to the approval of the Administra- 
tor, to prescribe rules of procedure and rules to effect compliance 
with awards and determinations. 

Section 8. Cost Finding. — The Code Authority shall cause to 
be formulated methods of cost finding and accounting capable of 
use by all members of the industry, and shall submit such methods 
to the Administrator for review. If approved by the Administrator, 
ifull information concerning such methods shall be made available to 
all members of the industry. Thereafter, each member of the in- 
dustry shall utilize such method^ to the extent found practicable. 
Nothing herein contained shall be construed to permit the Code 
Authority, an}' agent thereof, or any member of the industry to sug- 
gest uniform additions, percentages or differentials or other uniform 
items of cost which are designed to bring about arbitrary uniformity 
of costs or prices. 

Ajiticle VII — Trade Practice Rules 

Uttle 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, trademark, grade, quality, quantity, 
origin, size, substance, character, nature, finish, material, content or 
preparation) or credit terms, values, policies, services, or the nature 
or form of the business conducted. 

Rule 2. Substitution of Material. No member of the Industry 
shall substitute any material other than that specified by the 
purchaser. 

Rule 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. 

Rui.e 4. Inaccurate 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 5. Defamation. No member of the Industry shall defame 
a competitor by falsely imputing to him dishonorable conduct, in- 
ability to perform contracts, questionable credit standing, or by 
other false representation, or by falsely disparaging the grade or 
quality of his goods. 

Rule 6. Inducing Breach of Existing Contracts. No member of 
the Industry shall wilfully induce or attempt to induce the breach 



171 

of existinfr contracts between competitors and their customers by any 
false or deceptive means, or interfere with or ol)struct the perform- 
ance of any such contractual duties or services by any such means, 
with the purpose and effect of hampering, injuring or embarrassing 
competitors in their business. 

Rule 7. Aiding or Abetting in Unfair Practices. No member of 
the Industry shall aid or abet another member of the Industry in any 
unfair practice prohibited in this Article. 

RuLK 8. Compensation for Services. No member of the Industry 
shall render to any purchaser of any product, or in connection with 
the sale or installation of such product, any service, unless fair com- 
pensation for such service shall be paid by such purchaser as set 
forth in the price schedules filed by such member of the Industry 
with the Code Authority. 

Rule 9. Shipping on Consignment. No member of the Industry 
shall ship goods on consignment except under circumstances to be 
defined by the Code Authority, and approved by the Administrator. 

Rule 10. Samples. No member of the Industry shall supply 
samples other than hand or display samples. 

Rule 11. Shades Furnished for Demonstrating Purposes. Shades 
furnished for demonstrating purposes with reference to any one 
particular order shall be charged for at the manufacturer's filed 
prices. 

Rule 12. Secret Rebates. No member of the Industry shall secretly 
offer or make any payment or allowance of a rebate, refund, commis- 
sion credit, unearned discount or excess allowance, whether in the 
form of money or otherwise, nor shall a member of the Industry 
secretly offer or extend to any customer any special service or privi- 
lege not extended to all customers of the same class, for the purpose 
of influencing a sale. 

Rule 13. 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 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 rep- 
resented party, without the knowledge of such employer, principal 
or party. This provision shall not be construed to prohibit free and 
general distribution of articles commonly used for advertising except 
so far as such articles are actually used for commercial bribery as 
hereinabove defined. 

Rule 14. Coercion. No member of the Industry shall require that 
the purchase or lease of any goods be a prerequisite to the purchase 
or lease of any other goods. 

Article VIII — Costs and Price Cutting 

Section 1. The standards of fair competition for the industry with 
reference to pricing practices are declared to be as follows : 

(a) Wilfully destructive price cutting is an unfair method of com- 
petition and is forbidden. Any member of the industry or of any 
other industry or the customers of either may at any time complain 
to the Code Authority that any filed price constitutes unfair competi- 
tion as destructive price cutting, imperiling small enterprise or tend- 
ing toward monopoly or the impairment of code wages and working 



172 

conditions. The Code Authority shall within five (5) days afford 
an opportunity to the member filing the price to answer such com- 
plaint and shall within fourteen (14) days make a ruling or adjust- 
ment thereon. If such ruling is not concurred in by either party to 
the complaint, all papers shall be referred to the Research and Plan- 
ning Division of NRA which shall render a report and reconmienda- 
tion thereon to the Administrator. 

(b) "VVlien no declared emergency exists as to any given product, 
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 in the determination of pricing policies. 

(c) When an emergency exists as to any given product, sale below 
the stated minimum price of such product, in violation of Section 2 
hereof, is forbidden. 

Section 2. Emergency Provisions. — ^a) If the Administrator, 
after investigation shall at any time find Doth (1) that an emergency 
has arisen within the industry 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 determination of the stated minimum price for a specified 
product within the industry for a limited period is necessary to 
mitigate the conditions constituting such emergency and to effectuate 
the purposes of the Act, the Code Authority may cause an impartial 
agency to investigate costs and to recommend to the Administrator 
a determination of the stated minimum price of the product affected 
by the emergency and thereupon the Administrator may proceed to 
determine such stated minimum price. 

(b) "When the Administrator shall have determined such stated 
minimum price for a specified product for a stated period, which 
price shall be reasonably calculated to mitigate the conditions of 
such emergency and to effectuate the purposes of the National Indus- 
trial Recovery Act, he shall publish such price. Thereafter, during 
such stated period, no member of the industry shall sell such specified 
products at a net realized price below said stated minimum price 
and any such sale shall be deemed destructive price cutting. From 
time to time, the Code Authority may recommend review or recon- 
sideration or the Administrator may cause any determinations here- 
under to be reviewed or reconsidered and appropriate action taken. 

Article IX — Open Price 

Section 1. Each member of the industry shall file with a con- 
fidential and disinterested agent of the code authority, or, if none, 
then with such an agent designated by the Administrator, identified 
lists of all of his prices, discounts, rebates, allowances, and all other 
terms or conditions of sale, hereinafter in this article referred to as 
* price terms ', which lists shall completely and accurately conform 
to and represent the individual pricing practices of said member. 
Such lists shall contain the price terms for all such standard prod- 
ucts of the industry as are sold or offered for sale by said member 
and for such non-standard products of said member as shall be 
designated by the code authority. Said price terms shall in the 
first instance bo filed within thirty (30) days after the date of ap- 



173 

proval of this provision. Price terms and revised price terms sliall 
become effective immediately upon receipt thereof by said a<Tent. 
Immediately upon receipt thereof, said agent shall by telegraph 
or other equally prompt means notify said member of the time of 
such receipt. Such lists and revisions, together with the effective 
time thereof, shall upon receipt be immediately and simultaneously 
distributed to all members of the industry and to all of their cus- 
tomers who have applied therefor and have offered to defray the 
cost actually incurred by the code authority in the preparation and 
distribution thereof and be available for inspection by any of their 
customers at the office of such agent. Said lists or revisions or any 
part thereof shall not be made available to any person until released 
to all members of the industry and their customers, as aforesaid ; pro- 
vided, that prices filed in the first instance shall not be released until 
the expiration of the aforesaid thirty (30) day period after the ap- 
proval of this code. The code authority shall maintain a permanent 
file of all price terms filed as herein provided, and shall not destroy 
any part of such records except upon written consent of the Admin- 
istrator. Upon request the code authority shall furnish to the 
Administrator or any duly designated agent of the Administrator 
copies of any such lists or revisions of price terms. 

Section 2. When any member of the industry has filed any re- 
vision, such member shall not file a higher price within forty-eight 
(48) hours. 

Section 3. No member of the industry shall sell or offer to sell 
any products of the industry for which price terms have been filed 
pursuant to the provisions of tliis article, except in accordance with 
such price terms. 

Section 4. No member of the industry shall enter into any agree- 
ment, understanding, combination or conspiracy to fix or maintain 
price terms, nor cause or attempt to cause any member of the indus- 
try to change his price terms by the use of intimidation, coercion, 
or any other influence inconsistent with the maintenance of the free 
and open market which it is the purpose of this Article to create. 

Article X — Export Trade 

No provision of this Code relating to prices, or terms of selling, 
shipping, or marketing, shall apply to export trade or sale or ship- 
ments for export trade. " Export Trade " shall be defined as in the 
Export Trade Act adopted April 10, 1918. 

Article XI — Modifications 

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



174 

Article XII — ISIonopolies 

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

Article XIII — Effective Date 

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



Approved Code No. 473. 
Registry No. 1629^06. 



O 



Approved Code No. 474 
CODE OF FAIR COMPETITION 

FOR THE 

NEEDLEWORK INDUSTRY IN PUERTO RICO 
As Approved on June 28, 1934 



I 



EXECUTIVE ORDER 

Code of Fair Competition for the Needlework Industry in Puerto 

Rico 

An application havinfz; 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 Needlework Industry in Puerto Rico, 
and hearings having been held thereon and the Administrator having 
rendered his report containing an analysis of this Code of Fair 
Competition, together with his recommendations and findings with 
respect thereto, and the Administrator having found that this Code 
of Fair Competition complies in all respects with the pertinent 
provisions of Title I of said Act and that the requirements of clauses 
(1) and (2) of subsection (a) of Section 3 of the said Act have 
been met. 

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

(1) That any member of this Industry as defined in this Code 
under Article II, Section 1, shall in engaging in this industry in 
Puerto Rico be exempt from the provisions of the following Codes 
of Fair Competition: 

(a) The Handkerchief Industry. 

(b) The Dress Manufacturing Industry 

(c) The Cotton Garment Industry 

(d) The Blouse and Skirt Manufacturing Industries 

(e) The Light Sevring Industry Except Garments 

(f) The Art Needlework Industry 

(g) The Infants' and Children's Wear Industry 

70058° 657-173 34 1 (175) 



176 

(h) The Undergarment and Negligee Industry 

(i) The Underwear and Allied Products Manufacturing Industry 

(j) The Pleating, Stitching and Bonnaz and Hand Embroidery 
Industry 

(k) The Schiffli, the Hand Machine Embroidery and the Em- 
broidery Thread and Scallop Cutting Industries. 

(2) Where articles are manufactured or processed, in part, in 
Puerto Ilico, under the provisions of this Code, and in part in the 
Continental United States under a Code of Fair Competition which 
prescribes the use of labels bearing N.R.A. insignia upon such ar- 
ticles, the Code Authorities of such Codes ad the Code Authority 
of this Code shall, within a period of sixty days from the effective 
date of this Code, formulate and submit for the approval of the 
Administrator a plan for the issuance and use of labels upon such 
articles, and such special regulations relating thereto as may be nec- 
essary. Pending the approval of such plan and regulations, unless 
the Administrator shall order otherwise, continental manufacturers, 
as defined in this Code, shall not be required to comply with the label 
provisions of their respective Continental Codes as to products 
manufactured or processed, wholly or in part, in Puerto Rico, and 
bearing labels affixed to them pursuant to the provisions of this 
Code. 

(3) That any contractor or manufacturer as defined in this Code, 
in the manufacture or processing or whose products home workers 
are engaged as employees, shall be bound to pay such cmploj^ees any 
deficiency in the wages actually received by them below the amount 
of wages wdiich they should receive under the provisions of this 
Code. Such contractor or manufacturer shall be responsible for 
the delivery to such homeworkers of all their wages. 

(4) That there shall be appointed by the Administrator for the 
Industrial Recovery, wuthin ten (10) days after the effective date 
liereof, a Puerto Rican Needlework Commission consisting of three 
]jersons: one of whom shall be nominated by the Code Authority for 
the Needlework Industry in Puerto Rico, another of whom shall be 
nominated by the several Code Authorities of related industries in 
continental United States, and a third person to serve as chairman, 
shall be nominated by the National Recovery Administration. This 
commission shall study the operation of this Code together with the 
opei'ation of such codes as have jurisdiction over the manufacture of 
competitive products in the United States with a view to determining 
the relative effect of the operation of this Code upon the manufac- 
ture of such items in the several States and in Puerto Rico. Such 
Commission shall be empowered to make recommendations to the 
Administrator for such modifications in this Code as may, in the 
opinion of the commission, be necessary in order to maintain fair 
c:impetition in the needlework trade in the several States and on 
the Island of Puerto Rico and in order to effectuate the purposes of 
the National Industrial Recovery Act. 

(5) That the choice of the impartial chairman of the Piece Rates 
Commission, shall be sul)ject to the approval of the Administrator 
and that the piece rates established pui-suant to the provisions of 
Section 5 of Article IV of the code shall be binding upon members 
of the Industry, for not more than a period of ninety days, from the 



177 

elToctive date of this code. The Needlework Commission and the 
Piece Rates Commission shall, either jointly or severally, within 
ninety days after the effective date of this Code, recommend the con- 
tinuation of said established minimum piecework rates or changes 
in such rates, or recommend a point system or other system for 
adjusting the minimuui couipensation of employees to the mininmm 
wage rates provided in this Code. Such recommendations shall, 
upon approval of the Administrator, after such notice and hearing 
as he may prescribe, be binding ujion all members of the Industry, 
as the rates provided for in said section. 

FRANKLIN D. ROOSEVELT. 
Approval recommended. 
IIucii S. Johnson, 

Adminhtrator. 

TiiK White House, 

June 28, IDJIf. 



LETTER OF TRANSMITTAL 

The President, 

The White House. 

Sir : This is a report on public hearings and conferences held for 
the purpose of obtaining a Code of Fair Competition for the Needle- 
work Industry in Puerto Rico. 

On January 30, 1934, thirty-five days after the Deputy Adminis- 
trator for Puerto Rico had arrived on the Island, the Puerto Rican 
Needlework Association submitted a code of fair competition. Fol- 
lowing preliminary conferences held at San Juan during the months 
of January and February, a public hearing was held in the San Juan 
Municipal Theatre on February 28 and on March 1. This hearing 
was attended by approximately seventy-five members of the industry 
and about 1800 representatives of labor. The San Juan hearing was 
later re-convened in Y/ashington to afford mainland manufacturers 
an opportunity to be heard. At the Washington hearing there were 
present representatives of i;he code authorities of the affected in- 
dustries. All of those who requested an appearance were fairly 
heard in accordance with the usual requirements of the National 
Recovery Administration. 

THE PUERTO RICO NEEDLEWORK ASSOCIATION 

The Puerto Rican Needlework Association which acted as sponsor 
of this code is the recognized needlework trade association in Puerto 
Rico and represents in excess of 90 per cent of the volume of the 
business and of the membership of the Puerto Rican NeedlcAvork 
Industry. 

The experience of these members, under Code Authority direction, 
should prove invaluable in code administration, particularly in pro- 
tecting the interests of homeworkers. 

NATURE OF THE NEEDLEWORK INDUSTRY IN PUERTO RICO 

Tlie Needlework Industry is the second largest in Puerto Rico, 
employing approximately 7,000 workers in 85 or more factories. 
Although no j^recise figures are available, it is estimated that there 
are more than 70,000 homeworkers, about 25,000 of whom live adja- 
cent to towns, within easy access of the factories, while the remaining 
45,000 live well inland. The industry is located primarily in or near 
the towns of Mayaguez, Ponce, Arecibo, Aguadilla, Guayama and 
San Juan, although homeworkers are employed throughout the 
Island. 

The NeedlcAvork Industry in Puerto Rico is relatively new, having 
grov\^n up during the last twenty years. It began to attain volume 
])ro(]uction when mainland chain stores undertook the distribution 
of dresses, handkerchiefs, linens, underwear, and other hand-orna- 

(178) 



179 

mentod articles. Relatively speakiiifr, however, the development of 
the industry has been rapid, considerin<^ its obstacles and handicaps. 

The members of the industry manufacture or j)roccss a great 
variety of articles which wovdd come principally under seven of the 
apparel codes approved for the United States, includino; handker- 
chiefs, infant's, children's and women's wear, cotton and silk under- 
garments, blouses, linens, bridge sets, tablecloths, napkins, bedspreads 
and pillows. 

Practically all Puerto Rican garments carry drawn work or hand 
embroider}^, found on few articles of like nature made on the main- 
land. These hand embellished garments may be otherwise of the 
same type as mainland products — though in finished appearance they 
more nearly resemble articles from the Philippines, China, the Ma- 
deii-a Islands, Belgium or France, with which countries they compete,. 

The outstanding feature of the Puerto liican Needlework Industry 
is that few of its members are specialists. Some members of the 
industr}^, it is true, have preferences. For example, one company 
may prefer to deal in handkerchiefs, but, given the opportunity, will 
quite readily divert its facilities to the processing of any other article 
which appears to be profitable. Thus during the several seasons of 
the year, a company might be engaged in several diiferent phases 
of needlework production, de^Dending largely upon market require- 
ments. 

If each branch of the Puerto Rican Needlework Industry were 
given a separate code or brought under the mainland code for that 
article or articles, each member of the industry would find himself 
operating under continually changing conditions with respect to 
wages and hours and other conditions of employment. This explains 
the existence of a single trade association in Puerto Rico and the 
submission of one code covering all its needlework trades. 

The Needlew^ork Industry on the Island is dependent upon orders 
from the States for work to be performed upon linen from Ireland, 
silk from Japan or China, or cotton from the mainland. These mate- 
rials usually are issued by the manufacturer, wholesaler or jobber 
who has a sales organization on the mainland to distribute products 
processed in Puerto Rico. 

The selling prices of the products are not regulated by mainland 
prices alone; buyers, in an effort to obtain new and attractive prod- 
ucts, have open to them the factories of other countries — the most 
notable competitors to Puerto Rico being the Philippine Islands, 
China, the Madeira Islands, France, Belgium and Ireland. If the 
prices of Puerto Rican products are raised excessively it well may 
be that buyers will be quickly driven to the factories of other nations 
for sources of supply. 

Puerto Rico views the anticipated burden of restricted hours and 
increased wages with apprehension, which is in no wise reliered 
by the prospect of continued uncertainty as to the regulations under 
which the industry will operate or when they will go into effect. The 
industry is young — its management is of the first generation — and its 
capital and experience is limited. With the exception of fulfilling 
contracts now in effect operations are decidedly curtailed, since the 
industry has no way of knowing how to plan for the future. In 
effect, its hands are tied. In fairness to itself, it can effect no 



180 

future contracts until a decision is reached upon the proposed code. 
In the meantime, manufacturers in the Philippines, in China and 
elsewhere, suffering no such handicap, are profiting at the expense of 
Puerto Rican industry and labor. In a somewhat modified sense 
this is true also of manufacturers in the United States. 

HOUIiS AND WAGES 

The average working week for employees in the Needlework In- 
dustry in Puerto Eico has been approximately 48 hours. Industry 
on the Island is seasonal to some extent as it is on the mainland. 
There is, however, one factor on the Island which does not exist 
on the mainland, i.e., the fact that goods are manufactured for 
shipment to the mainland and that shipments are made only once 
each week. This frequently necessitates working far into the night. 
To correct this practice it is provided in the code that all overtime 
shall be paid for at double the regular rate. 

The reduction from 48 to 40 hours per week under the code will 
increase employment approximately 16% per cent, and wages ap- 
proximately 20 per cent. 

Measured by American standards, Puerto Rican wages always 
have been low. Factory machine workers, now paid on an average 
of $3.32 per week of 48 hours, are to receive a minimum of $5.00 for 
40 hours, representing an increase of 50.6 per cent, which, with the 
added 20 per cent increase in wages resulting from the 16% per cent 
decrease in hours, will amount to a total increase of about 70 per 
cent. It should be noted that the $3.32 figure is an average, not a 
minimum wage. The present wage, which is indeterminate, would 
be much lower and the percentage of wage increase under the code 
correspondingly higher. Even greater benefits will accrue to home 
machine workers who, under the code, will likewise receive this 
$5.00 minimum. 

Factory hand sewing and hand embroidery workers, normally paid 
in the average case from $2.00 to $2.10, are to receive $3.00 per week, 
an increase of 46.3 per cent, which, plus the 20 per cent increase 
from shortened hours, will amount to about 66 per cent. 

No accurately representative rates of payment have been deter- 
mined for homeworkers. The Commissioner of Labor for Puerto 
Rico and labor representatives in the Territory indicate that about 
three persons work on the same product in one home; that each of 
the three is engaged on this needlework for 60 to 70 hours a week; 
that the three, in the aggregate, earn about $1.00. 

The code provides that no employee engaged in home work shall 
be paid less than $2.00 per week. It is provided further that there 
shall be established immediately upon approval of the code a Piece 
Rates Commission, consisting of one member representing labor, 
one member representing industry and a chairman agreeable to both 
interests, which commission shall devote itself to the time study of 
home work production in an endeavor to fix adequate and equitable 
piece work rates, which in no event shall yield less than $2.00 per 
week. 

If this plan fimctions properly and if conditions in the home are 
as heretofore stated, three persons in one home could no longer be 



i 



181 

paid a pittance ainotiiitiiifi; to $l.()t) in tlio a<r.HTCi^ate for CU to 70 
hours' work, but would receive instead $0.00 or more for 40 hours 
work. This would represent a tremendous increase of over 500 per 
cent and should be of great moral as well as financial benefit to the 
Iiomeworkers. 

THE HOME WORK ritOr.EEJM 

Second only to agriculture courts needlework, which gives the 
womenfolk opjiortunity to supplement the family income, while car- 
ing for the aged and infant in the home. Most rural families live 
rent free, with parcels of land thrown in upon which they can raise 
whatever they like — without having to divide with the landlord. 
With agriculture as the basis, needlework helps to sustain the family 
earnings — in some cases supplying the main source of income. 

Much of the home work is done under conditions closely parallel 
to those of the subsistence homestead. 

Hand home work in Puerto Rico represents a much greater portion 
of the total volume of production than it does in the United States. 

The Code does not ])r()pose the elimination of home w^ork but 
I'ather its control and regulation, with a view to bringing the hours 
and wages and working conditions of Iiomeworkers up to a standard 
which will provide both fair competition Avith factory production 
and enable the Iiomeworkers to enjo}' a bettei" standard of living. It 
is anticipated that a certain percentage of the work now^ done in 
homes may, within a reasonable time, be transferred to community 
Avorkrooms. The approval of this code will make possible a begin- 
ning of work toward this end. 

SPECIAL PROVISIONS SUGGESTED BY LABOR 

Island industry has granted to Puerto Rican labor nearly every- 
thing that it has asked, as hereafter shown, except the minimum wage 
requested by labor. The reason this was not granted was the fear 
that it would reduce the volume of business sent to the Island, thus 
reacting against rather than in favor of insular labor. 

The following provisions were included at the request of labor: 

Article III-l : Labor desired that the 48 hour minimum be reduced 
to 40 hours; this was done. 

Article III-3 : Labor wished it stipulated that no overtime should 
be worked unless all machines and/or tables of that same type were 
occupied; this was granted. 

Article III-3 : Labor requested that double the normal wage be 
paid for overtime ; the industry agreed. 

Article III-4: Labor requested that the exemption for managers 
and executives be fixed at $12.00 instead of the $10.00 figure proposed 
by the industry; this was done. 

Article IV-5 : Labor requested that Iiomeworkers and their com- 
pensation be regulated; the Piece Rates Commission was provided 
for to serve this end. 

Article IV-7 : Labor wanted a guarantee that employees receiving 
above the code minimum for the normal work week prior to its 

70958° 052-173 34 2 



182 

adoption should not have their wages reduced for the shorter work 
week provided iii the Code; this section gives that guarantee. 

Article IV-8: Labor wished it made mandatory that all piece rates 
for factory smployees should be increased at least proportionately 
to the decrease in hours worked, to further insure employees against 
a jiossible lowering of wages by their employers; industry concurred. 

Article V-7 : Labor asked that the use of sewing machines in the 
home be abolished. This could not be granted on account of the 
number of poor people engaged in operating their own machines at 
home for their livelihood. It was arranged, however, that labor 
would permit home sewing only on machines commercially utilized 
prior to April, 1934, provided that work thereon should be paid for 
at the factory scale and that all homeworkers, machine owners and 
machines should be registered with the Code Authority. 

Article V-8 : Labor desired to see the number of homeworkers re- 
duced if possible and suggested the Community Workroom Plan 
as a means to that end. This section provides for a commission to 
study and make recommendations on the feasibility of this or an 
alternate plan. 

Article VI-1 : In accordance Avith labor's request, no member of 
the industry may cause any goods to be manufactured or processed 
in any factory not registered with the Code Authority. 

Article VI-2 : Labor asked that members of the industry causing 
goods to be manufactured by contractors or sub-contractors should 
be required to pay rates sufficient to enable such contractors or sub- 
contractors to pay their employees the minimums provided in the 
code. The industry is so obligated under the code. 

Article VII-8 (h) : Upon the request of the Labor Advisory 
Board and the Research and Planning Division, registration is pro- 
vided for all contractors, sub-contractors, delivery agents, and 
homeworkers. 

It appears from the above sections that the Needlework Industry 
in Puerto Rico has made a conscientious effort to collaborate with 
labor in its attempt to improve working and living conditions on 
the Island. 

COMPLIANCE 

A Compliance organization has been recently set up at San Juan 
and is prepared to function on this code the moment it is approved. 

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) The code will promote the policies and purposes of Title I 
of tlie Act, in that it will provide the first effort at regulation of an 
industry which h^s suffered severely through drastic and at times 
unwarranted competition. 

(b) The Puerto Rican Needlework Industry normally employs 
more than 50,000 workers, and is classified by me as a major industry. 



183 

((') The code conipiies in all resjiocts witli llic pcil incut ])rovi- 
5iions of Title I of the Act, including- witluuit liinitatioTi sub-section 
(a) of Section 3, sub-section (a) of Section 7, and sub-section (b) 
of Section 10, thereof; and that the applicant association is an 
inchistrial association truly representative of the aforesaid industry; 
and that the said association imposes no inequitable restrictions to 
membership therein. 

(d) The code is not desi^-ned to and will not permit monopolies 
or monopolistic practices. 

(e) Those engaoxMl in other steps of the economic ])i"()cess have 
not been de})rived of the ri<iht to be heard jH'ior to (lie approval of 
this Code. 

I recommend approval subject to the following condition: 

That there shall be appointed by the Administrator for Industrial 
Recovery, within ten days after the effective date hereof, a Puerto 
Rican Needlework Commission consisting of three persons: one of 
whom shall be nominated by the Code Authority for the Needlework 
Industry in Puerto Rico, another of whom sluiU be nominated by 
the several code authorities of related industries in continental 
United States, and a third person, to serve as chairman, shall be 
nominated by the National Recovery Administration. 

This commission shall study the operation of this code together 
with the operation of such codes as have jurisdiction over the manu- 
facture of competitive products in the United States with a view to 
determining whether the ojjeration of this code is such as to encour- 
age the manufacture of products on the Island of Puerto Rico and 
to discourage the manufacture of such items within the several 
states. Such commission shall be empowered to make recommenda- 
tions to the Administrator for such modifications in this code as 
may, in the opinion of the commission, be necessary in order to 
maintain fair competition in the needlework trades in the several 
states and on the Island of Puerto Rico and in order to effectuate 
the purposes of the National Industrial Recovery Act. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 

June 28, 1934 



CODE OF FAIR COMPETITION FOR THE NEEDLEWORK 
INDUSTRY IN PUERTO RICO 

Article I — ^Purposes 

To effectuate the policy of Title I of the National Industrial 
Recovery Act, this Code is established as a Code of Fair Competi- 
tion for the Needlework Industry in Puerto Rico, and its provisions 
shall be the standards of fair competition for such industry and 
shall be binding upon every member thereof. 

Article II — Definitions ^ 

1. The term '• Industry " as used herein includes the manufactur- 
ing and processing, including sewing, wholly or in part, within the 
Territory of Puerto Rico, of articles having drawn Avork and/or 
embroidery done upon them by machine and/or by hand including 
the business of contracting with reference thereto. 

2. The term " Employee " as used herein includes anyone engaged 
in the industry in any capacity receiving compensation for his 
services irrespective of the nature or method of such compensation, 
except a member of the industry. 

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

4. The term " Member of the Industry " as used herein includes 
but without limitation, any individual, partnership, association, 
corporation, or other form of enterprise engaged in the industry as 
above defined, either as an employer or on his or its OAvn behalf, 
whether as manufacturer, contractor or sub-contractor. 

5. The term " Manufacturer " as used herein includes any indi- 
vidual, partnership, association, corporation, or other form of enter- 
prise, operating his or its own factory, work room, shop, or other 
manufacturing establishment in the Territory of Puerto Rico. 

G. Tlie term " Continental-Manufacturer " includes, but without 
limitation, any individual, partnership, association, corporation, or 
otlier form of enterprise selling at wholesale to customers located 
elseAvhere than in Puerto Rico products of the Industry manufac- 
tured and/or processed from materials in part supplied by him or it. 

7. The term " Contractor " includes, but without limitation, any 
individual, partnership, association, corporation or other form of 
enterprise which contracts to manufacture and/or process in the 
Territory of Puerto Rico products of the Industry for a manufac- 
turer or continental manufacturer. 

8. The term " Sub-contractor " includes, but without limitation, 
any individual, partneivship, association, corporation or other form 

^ Sec paragraph 2 (1) of order approviuK thi.s Code. 

(184) 



185 

of enterprise which contracts to manufactnre, in whole or in part in 
the 'J'erritory of Puerto liico products of the Industry, for a con- 
tractor or sub-contractor in Puerto Ivico. 

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

Article III — Hours 

1. No employee shall be permitted to work in excess of forty (40) 
hours in any one week or eight (8) hours in any twenty-four (24:) 
hours j)eriod, except as hereinafter provided. 

2. No office employee, chauffeur, shipping and/or stock clerk or 
watchman shall be permitted to work in excess of forty-four (44) 
hours in an}' one week. 

3. The maximum number of hours of overtime which any employee 
may l)e permitted to work in any calendar year shall not be in excess 
of seventy-two (72) hour?. In no event shall any employee be per- 
mitted to work more than two (2) hours overtime in any day or more 
than six (6) hours overtime in any week. All overtime shall be 
paid for at not less than twice the normal wage rate. Overtime for 
any particular manufacturing process shall only be permitted if all 
available machines and/or tables of that same type are occupied. 
Machines or tables temporarily vacant on account of sickness or ab- 
sence of an emplo3^ee shall not be construed to be vacant for this 
provision. 

The Code Authority shall be notified in writing at least one day in 
advance of the use of overtime by any member of this industry, and 
such notification shall contain a statement of the need -for overtime 
and the manner in which it will be utilized. 

4. The provisions of this Article shall not apply to persons engaged 
in a managerial or executive capacity who earn not less than $12.00 
per week. 

5. No employer shall knowingly permit any emploj^ec to work for 
any time which, when added to the time spent at work for another 
employer or employers (in this industry or otherwise) exceeds the 
maximum permitted herein. 

Article IV — Wages - 

1. No employee shall be paid in any pay period less than at the 
rate of $5.00 per week except as hereinafter provided. 

2. No employee engaged in a factory doing hand sewing or em- 
broidery shall be paid in any pay period less than at a rate of three 
dollars '($3.00) per week. 

3. No employee engaged in work in a home shall be paid less than 
at a rate of Two Dollars ($2.00) per week. 

4. Apprentices, not to exceed five percent (5%) of the total 
number of employees in anj^ factory, may be employed in factories 

" See paragraph 2 (3) of ordor approving this Code. 



186 

amd shall be paid not leses than sixty per cent (60%) of the minimum 
wage herein established during the first six (6) Aveeks of their em- 
ployment in the industry, and not less than eighty per cent (80%) 
of the minimum wage herein established, during the second six (6) 
weeks of their employment in the industry. No employer shall 
knowingly employ as an apprentice any person who has been em- 
ployed in the industry for a total period of time exceeding twelve 
(12) weeks. Apprentices shall be paid at the piecework rate paid 
regular piecework employees in the same factory for the same class 
of work, provided compensation based upon such rate is greater than 
that herein provided. 

5. There shall be established immediately upon the adoption of this 
Code a Piece Eates Commission, which commission shall consist of 
one member appointed by the Code Authority, one labor member 
appointed by tb.e Administrator and the two members shall then 
choose an impartial chairman." 

Such Piece Eates Commission shall establish, within thirty (30) 
days after the effective date of this Code, minimum piece work rates 
that shall be paid to all employees engaged in liand Avork at home, 
basing such rates on a minimum rate of pay of $2,00 per week, and 
in every case such piece work rates shall be established on actual 
study of the time necessary for the average employee to produce each 
article. Minimum piece work rates when established by the Piece 
Eates Commission shall be binding upon all members of the industry 
until such time as said I'ates are revised or changed. Such rates, 
liowerer, shall at all times be subject to change on review by the 
Administrator.* 

6. This Article established minimum rates of pay which shall 
apph' irrespective of whether or not the employee is actually com- 
pensated on-a time rate, piece rate or other basis. 

7. No employee shall receive a lesser rate of pay than is required 
to provide the same weekly earnings as were received for that class 
of work for the four vseeks ending April 30, 1934. 

8. All piece rates for employees engaged in any factory shall be 
increased at least proportionately for the decrease in hours worked, 
to provide not less than the same weekly earnings for employees 
engaged on a piece work basis under the maximum hours herein 
established as were received for that class of work for the longer week 
prevailing for the four weeks ending April 30, 1934. 

9. Female employees performing substantially the same work as 
male employees shall be paid the same rate of pay as male employees. 

10. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a 
wage below the minimum established by this Code if the employer 
obtains from the proper Insular Authority, 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 
vv'ages paid to, and the maximum hours of work for such employee. 

• Seo paragniph 2 (5) of order appr'Ovins this Code. 
*See paragraph 2 (4) of order approving this Code. 



I 



187 
Artici.e V — Gen KRAI, LAiion PnovrsioNS 

1. No person under sixteen (IG) years of afije sluill be employed in 
the industry. No person under ei<>hteen (IH) years of a<^o shall bo 
emploj^cd at oj^erations or occupations which are hazardous in nature 
or detrimental to health. The Code Authority shall submit to the 
Administrator not later than sixty (CO) days after the effective date 
hereof, a list of such operations or occupations. An employer shall 
be deemed to have complied Avith this provisicm as to age if he shall 
have on file a certificate or permit duly issued by the Authority in 
Puerto liico empowered to issue employment or age certificates or 
permits showing that the employees are of the required age. 

2. (a) Employees shall have the right to organize and bargain col- 
lectively, through re})resentatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such rei3resentatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

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

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

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

4. No provisions in tRis Code shall supers?de any law of Puerto 
Rico which imposes more stringent requirements on employers as to 
age of employees, wages, hours of work, or as to safety, health or 
sanitary c(jnditions or insurance, or fire i)rotection, or general work- 
ing conditions, than are imposed by this Code. 

5. Each member of the industry shall be furnished by the Code 
Authority with oiiicial copies of the provisions of this Code relating 
to hours of labor, rates of pay, and other conditions of employment. 

Such oflicial copies of such provisions shall contain directions for 
filing con.iplaints of violations of such provisions, and shall be kept 
conspicuoush' posted at all times by such members of the industry 
in each shop, establishment or separate unit, to the extent necessary 
to make them freely accessible to all employees. Whenever any 
modification of, or exemption or exception from this Code permits 
any person to pay lower wages or work his employees longer hours, 
or establish conditions of employment less favorable to his employees 
than those prescribed by the provisions of this Code, the Code Au- 
thority, at the request of such person, shall furnish him with certified 
copies of such modifications, exemptions, or exception in sufficient 
number for posting alongside of such official copies of Code 
provisions. 

No member of the Industry shall display or furnish any incorrect 
copies of such provisions, directions, modification, exemptions or 
exception. Copies of these labor provisions shall be printed both 
in English and Spanish, 



188 

6. Every employer shall provide for the safety and health of 
employees diiriii'; the hours and at their places of employment. 
Standards of safety and health shall be submitted by the Code 
Authority to the Administrator within six months after the effective 
date of this Code. 

7. No member of the Industry shall allow any stamping, cutting, 
washing, pressing, folding, ribboning, ticketing or machine sewing 
in a home on products of this Industr3^ Members of the Industry 
may, however, employ workers who have been employed at machine 
sewing in homes during the year immediately preceding the ap- 
proval of this code, to do machine sewing at home on those machines 
owned by home workers as of the date of approval of this Code 
upon which they have theretofore done such machine sewing, pro- 
vided every such home worker is registered with the Code Authority, 
and provided further that the machine used by such home worker 
is registered with the Code Authority as provided for in Article 
VII, Section 8 (i) of this Code. All work done in homes on sewing- 
machines must be paid for at a rate not less than the rate for similar 
work done in the factory and in no case at less than a rate of $5.00 
per week of forty (40) hours. 

8. The Administrator shall appoint a Commission, on or after 
the effective date of this code, to study the Community Work Room 
plan, and if that plan is not adjudged to be feasible to propose an 
alternate plan the object of which shall be to take from homes to 
Community Work Rooms or Factories as many home workers as 
practicable. The Commission shall report its findings on the Com- 
munity Work Room or alternate plan within ninety (90) days after 
its first meeting. 

Article VI — Contractors 

1. No member of the industry shall cause any goods to be manu- 
factured or processed in any factory not registered with the Code 
Authority in accordance with regulations to be issued by the Code 
Authority subject to the approval of the Deputy Administrator. 

2. All members of the Industry causing any goods to be manu- 
factured by contractors or sub-contractors shall pay to such con- 
tractor or sub-contractor for such products, rates at least sufficient 
to enable such contractor or sub-contractor to pay their employees 
working on such goods the minimum wage provided for by this 
Code and all such payments received by such contractor or sub- 
contractor shall be first applied in the payment of wages to the 
employee working on such goods. 

3. No member of the Industry shall accept any goods to be 
manufactured or processed from any continental manufacturer unless 
such continental manufacturer shall pay an amount sufficient to 
enable snich member of this industry to pay to his employees the 
rat<?s of pay as established by this Code. 

4. The Administrator may request the Code Authority to study 
the problem of jobber-contractor and contractor sub-contractor re- 
lationships. The Code Authority shall make recommendations to 
the Administrator regarding the establishment as part of this Code, 
of such rules and regulations as will tend to .stabilize the relation- 
ship between jobbers and contractors and contractors and sub- 



189 

contractors and further effectuate the purposes of this Act and of 
this code, which recommendations upon the approval of the Admin- 
istrator and after such notice and hearing as he may prescribe, shall 
become effective as i)art of this Code. 

Article VII — Administration 

ORGANIZATION, TOWERS AND DUTIES OF THE CODE AUTHORITY 

1. A Code Authority is hereby established consisting of : 

(a) Thirteen (13) representatives or such larfjjer number as may 
be approved from time to time b}'' the Deputy Administrator for the 
Territory of Puerto Kico, to be selected as hereinafter provided. 

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

2. Four (4) members of the Code Authority representing the 
Industry shall be selected from those members of the Industry whose 
chief product is handkerchiefs ; two members from those whose chief 
product is silk underwear; two members from those wdiose chief 
product is ladies' cotton underwear ; two members from those whose 
chief products are women's and children's dresses ; and two members 
from those whose chief products are table and fancy linens. The 
manner of selecting such Code Authority members shall be governed 
by such plan of procedure as may be proposed by the Code sponsors 
to the Deputy Administrator wdthin thirty (80) days after the 
effective date hereof and thereafter approved by the Deputy 
Administrator. 

3. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall : 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 
b3''-laws, regulations and any amendments when made thereto, to- 
gether with such other information as to membership, organization 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

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

5. Nothing contained in this Code shall constitute the members 
of the Code Authority partners for any purpose. Nor shall any 
member of the Code Authority be liable in any manner to anyone 
for any act of any other member, officer, agent or employee of tho 
Code Authority. Nor shall any member of the Code Authorit}' bo 
liable to an3^one for any action or omission to act under the Code, 
except for his own wilful malfeasance or non-feasance. 



190 

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

7. The Code Authority shall obtain from members of the Industry 
such information and reports as are required for the administration 
of the Code. In addition to the information required to be sub- 
mitted to the Code Authority members of the Industry shall furnish 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the National Indus- 
trial Recovery Act to such United States and Puerto Rico Govern- 
ment agencies as he may designate, provided that nothing in this 
Code shall relieve any member of this industry of any existing 
obligations to furnish reports to any Government agency. 

: 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, subject to rules and regulations established by the Admin- 
istrator, for the compliance by the members of the Industry with 
the provisions of the Act: Provided, however, that this shall not be 
construed to deprive duly authorized Government agencies of their 
power to enforce the provisions of this Code or the Act. 

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

(c) To obtain through a confidential agency from members of the 
Industry periodical reports in such form and at such times with 
respect to wages, hours of labor, conditions of emploj^ment, num- 
ber of employees, and such other matter pertinent to the purposes 
of this Code as the Code Authority, with the approval of the Admin- 
istrator, may require for the administration of this Code, and to 
Bubniit reports to the Administrator in such form and at such times 
as he may require in order that the President may be informed as 
to the observance or non-observance of the Code and to further 
effectuate the policies of the Act. 

The confidential agency shall be in no way engaged in the industry 
nor connected with any member thereof, and all reports received by 
it shall be held as secret and confidential, except that they shall bs 
made available to the Administrator. 

Such agency shall analyze, digest, and consolidate such reports 
and shall disclose only general findings based thereon. Such general 
findings shall be made available to the Code Authority and such 
membei-s of the Industry as have assented to this Code. 

(d) To use such trade association and other agencies, including 
the Piece Rates Commission, as it deems proper for the carrying out 
of any of its activities provided for therein, and to pay such agencies 



191 

the cost thereof; provided, that such afjencics shall at all times be 
subject to and compl}^ with the provisions of tliis Code; and provided 
further, that notiiin<^ herein shall relieve the Code Authority of any 
of its duties and responsibilities thereunder. 

(e) To make ret . mmendations 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 this industry. 

(f ) To recommend to the Administrator any action or measures 
deemed advisable, includino- 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. 

(g) To initiate, consider, and make recommendations for the modi- 
fication or amendment of this Code, which when approved by the 
Administrator shall become binding upon all members of the in- 
dustry as part of this Code. 

(hj The Code Authority shall obtain from manufacturers lists 
of all contractors, sub-contractors or delivery agents to whom they 
supply materials for processing or manufacture into products of the 
Industry, whether by such contractors, sub-contractors or delivery 
agents or others; from contractors, lists of all subcontractors to whom 
they supply materials for such purposes; and from all members of 
the Industry, lists of every home-worker to whom they supply ma- 
terials for such purj^oses, including the address or best location pos- 
sible of each home-worker. The Code Authority shall obtain reports 
of all changes in such lists. 

(i) Yv'ithin ninety days following the date this code becomes effec- 
tive the Code Authority shall register all sewing machines used in 
homes in the manufacture or processing of products of this industry 
on or before April 1, 1934, with the serial number of each such 
machine, its type and age, the name and address of the owner and 
of the person operating such machine during the year preceding 
April 1, 1934, and the name and address of any person holding a 
chattel mortgage or conditional sale contract for such machine. 

(j) To make complaint to the President on behalf of the industry, 
as authorized by the Act, wdienever any article is being imported into 
tlie United States in substantial quantities or increasing ratio to 
Porto Rican production of any competitive article or articles and on 
such terms or under such conditions as to render ineffective or seri- 
ously to endanger the maintenance of this Code. 

(k) The Code Authority shall obtain from every member of the 
Industry certified reports based on two or four week operations, 
giving a complete list of all home-workers emploA^ed by such member 
whether the work done by the home-worker was done by hand or 
on machine, the number of items or articles so produced and the 
amount paid to each home-worker. 

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



192 

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

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

(c) Aft^r such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable con- 
tribution 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. Each member of the industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Author- 
ity, determined as hereinabove provided, and subject to rules and reg- 
ulations pertaining thereto issued by the Administrator. Only mem- 
bers of the industry complying Avith the code and contributing to 
the expenses of its administration as hereinabove provided, shall be 
entitled to participate in the selection of members of the Code Au- 
thority or to receive the benefits of any 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; and no subsequent 
budget shall contain any deficiency item for expenditures in excess 
of prior budget estimates except those which the Administrator 
shall have so approved. 

Article VIII — N.R.A. Label'' 

1. Any kind of article manufactured or processed subject to the 
provisions of this Code shall bear an N.R.A. label or an authorized 
substitute therefor to symbolize to purchasers of said goods the 
conditions under which said goods have been manufactured, if the 
Code Authority, subject to the approval of the Deputy Adminis- 
trator for Puerto Rico, shall so determine, 

2. Subject to such rules and regulations as the Administrator may 
from time to tim-s prescribe, the Code Authority shall have the 
exclusive right in this industry to issue and furnish said labels to 
the members thereof, and/or to negotiate with the Code Authority 
administering the Code from which the members of the industry 
in Puerto Rico are exempted, to secure and distribute labels issued 
by the latter Code Authority. 

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



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



193 

4. Sul)ject to the approval of tbc Administrator, the Code Author- 
ity sliall establish rules and re<^ulations and approi)riate machinery 
for the inspection, examination and supervision of the practices of 
jnembers of the industry usin^ sucii labels for the purposes of ascer- 
taining the ri<2;ht of such members of the industry to the continued 
use of said labels; of protettinii; purchasers in rel3'ing on said labels; 
and of insuring to each individual member of the industry tbat the 
symbolism of said label will be maintained by virtue of compliance 
with the provisions of this Code by all other members of the industry 
using said label. 

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

Article IX — Trade PitACxiCES 

1. The standards of fair competition for the industry with refer- 
ence to pricing practices are declared to be as follows (for definition 
of terms see subsection (d) 

^a) The Principle. — 

(1) Destructive price cutting is an unfair method of competition 
and is forbidden at all times, irrespective of the existence of an 
emergency ; 

(2) 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 ; 

(3) When an emergency exists as to any given product, sale below 
the lowest reasonable cost of such product, in violation of subsection 
(c) hereof is forbidden. 

(b) Normal provision {Cost estimating methods). — 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 
industry and shall submit suth methods to the Administrator for 
review and possible disapproval. Full details and instructions con- 
cerning such methods shall be made available to all members of the 
industry and to the Administrator and thereafter all members shall 
utilize the principles of such methods. 

(c) Emergency provision {lowest reasonahle 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 Ad- 
ministrator, and shall become effective upon his approval or modi- 
fication after such notice and opportunity to be heard as he may 
prescribe. The Code Authority or the Administrator may, from 
time to time, cause such determinations to be reviewed or reconsidered 
and appropriate action taken. 

(d) Definitions. — An "Emergency" exists whenever the Admin- 
istrator determines that destructive price cutting is rendering in- 



194 

effective or seriously endangering the maintenance of the provisions 
of this Code. 

" Destructive price cutting " — 

(1) When no emergency exists, the term shall have the meaning 
declared in rules and regulations promulgated by the Administrator 
on recommendation of the Code Authority or on his own motion ; 

(2) When an emergency exists, the term shall mean any sale in 
violation of subsection (c) hereof; 

(3) It shall be an absolute defense to any charge of destructive 
price cutting, if an impartial agenc}^ designated or approved by the 
Administrator, shall find : 

(aa) That the price complained of is justified by existing com- 
petition, 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 distress merchandise, dropped lines or seconds, provided 
the Code Authority has been notified of the intention to dispose of 
the same; 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. 

2. No member of the industry shall, for the purpose or with the 
intent of evading any of the provisions of this code : 

(a) Allow deductions to be made from the actual invoice by rea- 
son of banking or exchange charges ; 

(b) Ship products to the mainland from Puerto Rico at other than 
f.o.b. factory terms, or pay for freight charges on raw materials 
shipped by a continental manufacturer to be manufactured or proc- 
essed wholl}^ or in part by any member of this industry : 

(c) Furnish without charging therefor not less than cost, rib- 
bon or ribbons, findings or other trimming to any " manufacturer " 
or " continental manufacturer "; 

(d) If a contractor or subcontractor pay premiums for fire or 
theft insurance on products of a manufacturer or continental manu- 
facturer aboA^e said contractor's or subcontractor's individual in- 
terest without charging the manufacturer or continental manufac- 
turer for such premiums paid. 

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

4. No member of the Industry shall wilfully induce or attempt to 
induce the breach of existing contracts between any manufacturer 
or continental manufacturer and his contractor or sub-contractor 
by any false or deceptive means, or interfere with or obstruct the 
performance of any such contractual duties or services by any such 
means. 

5. No contractor or manufacturer shall agree to manufacture 
samples for less than production cost plus overhead cost. 



195 

6. No member of the Industry shall agree to manufacture any 
products of the Industry on terms in excess of ten (10) days from 
date of shi})ment. 

7. No merchandise shall be manufactured for any member of the 
Industry in any prison, ]»rison camp, penitentiary, reformatory or 
other correctional institution or in any place by means of prison 
labor except in any such institution which has subscribed to, or 
Avhen any such institution hereafter subscribes to, this Code or any 
compact, or has entered into or may hereafter enter into a binding 
agreement of any other nature which satisfies the Industry that 
merchandise produced in such institution or by the inmates thereof 
will not be sold except upon a fair competitive basis with similar 
merchandise not so produced. Nothing in this Section shall be con- 
strued to supersede or interfere with the operation of tlie Act of. 
Congress approved on January 19, 1929, being Public No. G69 of the 
70th Congress and entitled ''An Act to Divest Goods, Wares and 
INIerchandise Manufactured, Produced or Mined by Convicts or 
Prisoners of Their Interstate Character in Certain Cases ", which 
Act is known as the Hawes-Cooper Act, or the provisions of any 
State or Territorial legislation enacted, under or effective upon the 
effective date of the said Hawes-Cooper Act, the said effective date 
being January 19, 1934. 

Article X — Modifications 

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

2. This Code, except as to jorovisions recjuired by the Act, may be 
modified in such manner as may be indicated by the needs of the 
public, by experience, or by changes in circumstances, such modifi- 
cation to be based upon application to the Administrator and such 
notice of hearing as he shall specify, and to become effective on 
approval by the President. 

Article XI — MoNorooES 

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 — General 

1. Any employer who at any time shall manufacture any article 
or articles subject to the provisions of this Code, shall be bound by 
all the provisions of this Code as to all employees engaged in whole 
or in part in such manufacture. In case any employee shall be 



196 

eno-afed partly in such manufacture and partly in the manufacture 
of'^goods of another character, this Code shall only apply to such 
portion of such employee's work as is performed in connection with 
the manufacture of articles subject to this Code, 

Article XIII — Effective Date 

1. This Code shall become effective three weeks after its approval. 

Approved Code No. 474. 
Registry No. 231-16. 

O 



Approved Code No. 175 

CODE OF FAIR COMPETITION 

FOR THE 

YEAST INDUSTRY 
As Approved on July 2, 1934 



ORDER 

Code of Fair C<^Mi'ETmoN for the Yeast Industry 

An application having been duly made })ursuant to and in full com- 
pliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Yeast Industry, and hearino; having been 
duly held thereon and the annexed report on said Code, containing 
findings with respect thereto, having been made and directed to the 
President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Pres- 
ident, including Executive Order No. 6543-A dated December 30, 
1933, and otherwise; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
(Competition be and it is hereby approved : provided, however, that 
the minimum wage rate contained in Article IV, Section 3, be and the 
same hereby is increased from forty (40) cents per hour to forty-five 
(45) cents per hour. 

Hugh S. Johnson, 
Adminisfrator for Industrial Recovery, 

Approval recommended : 
Armin W. Riley, 

Division Administrator. 

Washington, D.C, 

July 2, 1934. 

71467° 829-10 34 (107) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a rejiort on a Code of Fair Competition for the Yeast 
Industry and on the public hearing hekl in Washington, D.C., on 
April 11, 1934 in accordance v/ith the provisions of the National 
Industrial Recovery Act. 

GENERAL 

The Code for the Yeast Industry will mean, it is estimated, an 
increase in employment of thirty-one percent (31% ) over employ- 
ment as of June 15, 1929 and seventeen percent (17%) over employ- 
ment as of June 15, 1933. Weekly wage disbursements will be in- 
creased nine percent (9% ) as of June 15, 1929 and seventeen percent 
(17%;) as of June 15, 1933. 

This Code will result in an estimated increase in office employees 
as compared with October 15, 1933 of five percent (5%) over June 
15, 1933. 

Average hours of June 15, 1929 were reported as forty-eight (48) 
for male factory employees and forty-five (45) for female em- 
ployees, whereas the average hours of June 15, 1933 were reported 
as forty-seven (47) for male employees and forty-four (44) for 
female employees. 

Hours of labor for factory and office workers as a result of tliis 
Code will be sixteen and two-thirds percent (16%%) lower than the 
average hours worked as of June 15, 1929 and fifteen percent (15%) 
lower than the average hours worked as of June 15, 1933. 

Due to the higli wages paid to factory workers in this Industry, 
the minimum wage provisions of this Code will represent an increase 
to but approximately fifteen percent (15%,) of the employees above 
their June 15, 1933 wage. However, weekly earnings of office workers 
will be increased by api^roximately an eight percent (8%) increase 
over those of June 15, 1933. 

The employment in the Yeast Industry is estimated, when it is 
operating under this Code, will be 2.253. The total number of fac- 
tory and office employees in this Industry as of eJune 15, 1929 was 
1,117, and as of June 15, 1933 was 1,923. 

The Yeast Industry Code Committee is a group appointed by one 
hundred percent (100%) of the Industry. 

HOURS 

The Code for the Yeast Industry provides for a maximum work 
week of forty (40) hours with a limitation of eight (8) hours per day 
and six (G) days in any seven (7) day period. There are the usual 
exceptions in the case of employees engaged in office and clerical 
w(n]i. They may be permitted to work in excess of the normal hours 

(lOS) 



199 

per day or per week wheti inventory is boino taken and books are 
being closed, and in case of enier<;ency. but not in excess of forty (40) 
hours avera<j;ed over a four (4) weeks i)eriod. Watchmen shall not 
be permitted to work in excess of fifty-six (50) hours in any week. 
Chauffeurs, deliverymen and employees directly en<^a_ged in the phys- 
ical handlinj^ of shippin*; and receivino- shall not be permitted to 
Avork in excess of forty-ei<2:ht (48) hoin-s iii any ou'^ week. Route 
delivery salesmen, except as pi-ovided in Section 7 of Article III, 
shall not be pei-mitted to work in excess of forty-eijjjht (48) hours in 
any week. In the case of unforeseen peak j^eriods and other unusual 
conditions, beyond the control of the employer, employees other than 
those enoa<jje(i in office and clerical work may be iDermitted to work 
in excess of the normal hours per day or per week, but such overtime 
shall not exceed six (6) hours in any one week, or more than twelve 
(12) weeks in any calendar year, except in case of emei-fjency repair 
work or maintenance work involving mechanical breakdowns or pro- 
tection of life and jn-operty, and all such overtime shall be coni{)en- 
sated by at least time and (me-half. Re])orts of all time worked in 
excess of the maximum hours sliall be reported to the Code Authority 
or the Administrator when required by such Code Authorit}^ or by 
the Administrator stating the number of hours worked in excess of 
the maximum under the above provisions. Persons employed in man- 
agerial, executive or technical capacity who regularly receive not less 
than thirty-five (35.00) dollars ])er week or route delivery salesmen 
provided they receive not less than thirty (30.00) dollars per v/eek in 
cities of 100,000 population and over and not less than twenty-five 
(25.00) dollars per week in cities and towns or places of less' than 
100,000 population or to outside salesmen are not limited to the 
hourly restrictions of this Code. 

WAGES 

Office employees are under the minimum by population, stai'ting 
at sixteen (16.00) dollars per week in cities of over 500,000 popu- 
lation to fourteen (14.00) dollars per week in cities or towns of 
less than 250,000 population with the usual exception for office boys 
and messengers, who may receive two (2.00) dollars per week below 
the minimum wage set forth. In no case, however, shall office boys 
or messengers exceed ten percent (10%) of the total number of office 
employees for any one employer. No watchman shall be paid less 
than twenty (20.00) dollars per week and no other emplm^ee other 
than those covered by Sections 1 and 2, Article IV of this Code shall 
be paid less than at the rate of forty cents (400) per hour. From 
the information submitted, it would appear that this industry can 
pay a higher hourly rate than forty cents (40^^) per hour as provided 
in this Code. The Order of Approval approving this Code is drawn, 
therefore, to increase the rate from forty cents (400) per hour to 
fortj'-five cents (450) per hour. There are the usual provisions for 
payment for all time worked on Sundays and holidays, except by 
certain persons emploj^ed in managerial, executive or technical ca- 
pacity, outside salesmen, route delivery salesmen and Avatchmen. 



200 

The Deputy Adfliinistrator in his final report to me en said Code 
having found as herein set forth and, on the basis of all the proceed- 
ings in this matt<?r, 

I find that : 

(a) Said Code is well designed to promote the policies aaid pur- 
poses of Title I of the National Induotrial Recovery Act, including 
removal of obstructions to tl*3 free flow of interstate and foreign 
cojnmerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by prom.oting the organization of indus- 
try for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practice, by jDromoting the fullest possible 
uiiiization of the present productive capacity of industries, bj' avoid- 
ing undue restriction of production (except as may be tc^nporarily 
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 5-0,000 employ- 
ees; and is not classified by me as a major Induatry. 

(c) The Code as approved comj^lies in all respects with the peili- 
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 a trade association truly representative of the aforesaid Industry; 
and that said association imposes no inequitable restrictions on ad- 
mission to membership therein. 

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

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

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

For these reasons the Code has been approved. 

Respectfully, 

Hugh S. Johnson, 

A dmmistrator. 
July 2, 1934. 



CODE OF FAIR COMPETITION FOR THE YEAST 
INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is hereby establislied as a Code of Fair 
Competition for the Yeast Industry and its provisions shall be the 
standards of fair competition for such Industry and shall be binding 
upon every member thereof. 

Article II — Definitions 

Section 1. The term "President" as used herein shall mean the 
President of the United States. 

Section 2. The terms "Act " and "Administrator " as used herein 
shall mean res})ectively Title I of the National Industrial Recovery 
Act, and the Administrator for Industrial Recovery. 

Section 3. The term " Yeast Industry " as used herein is defined 
to mean the manufacture and sale by the manufacturer of compressed 
and/or dried Yeast. 

Section 4. The term " Member of the Industry " as used herein 
includes but without limitation any individual, partnership, associa- 
tion, corporation, or other form of enterj^rise engaged in the Industry 
either as an employer or on his or its own behalf. 

Section 5. The term " Code Authority " as used herein shall mean 
the agency established pursuant to Article VI for the purj^ose of 
administering this Code. 

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

Section 7. The term " Employer " as used herein includes anyone 
by whom any such employee is compensated or employed. 

Section 8. The term " Watchman " as used herein means any em- 
ployee whose principal function is watching and guarding his em- 
ployer's establishment and property. 

Section 9. The term "Outside Salesmen" as used herein shall 
mean only employees whose principal function is selling outside of 
the establishment and who do not ordinarily deliver merchandise. 

Section 10. The term " Route Delivery Salesmen " as used herein 
shall mean only employees whose principal function is selling and 
who ordinarily deliver and service the merchandise they sell. 

Section 11. Population, for the purpose of this Oode, shall be 
determined by reference to the latest Federal Census. 

Article III — Maximum Hours 

Section 1. No employee shall be permitted to work in excess oi" 
forty (40) hours in any week, or more than eight (8) hours in any 
twenty-four (24) hour period, except as herein otherwise provided. 

(201) 



202 

Section 2. Employees engaj^ed in office and clerical work may be 
permitted to work in excess of the normal number of working hours 
per day or pay week when inventory is being taken, when the books 
are being closed and in case of special emergency, provided that such 
employees shall not be permitted to work in excess of forty (40) 
hours per week averaged over a four (4) weeks' period. 

Section ?>. Watchmen shall not be permitted to work in excess of 
fifty-six (5G) hours in any week. 

Section 4. Chauffeurs, deliverymen, and employees directly en- 
gaged in the physical handling of shipping and receiving shall not 
be permitted to work in excess of forty-eight (48) hours in any 
week. 

Section 5. Route Delivery Salesmen, except as provided in Section 
7 of this Article shall not be permitted to work in excess of forty- 
eight (48) hours in any week. 

Section 6. In cases of unforeseen peak production, inventory 
periods, and other unusual conditions beyond the control of the 
employer, employees, other than employees engaged in office and 
clerical work, may be permitted to work in excess of the normal 
number of working hours per day or per week provided in this Code 
for the class of work performed by such employees. Such overtime 
shall not exceed six (G) hours in any one week, during not to exceed 
twelve (12) weeks in any calendar year, except in cases of emergency 
rei)air work involving break-downs or protection of life and prop- 
erty, and shall be compensated by at least time and one-half. Re- 
ports shall be made to the Code Authority vdien required by such 
Code Authority or by the Administrator stating the number of hours 
worked in excess of the maximum under the above provisions. 

Section 7. The provisions of this Article shall not apply to persons 
employed in a managerial, executive, or technical capacity who 
regularly receive not less than thirty-five ($35.00) dollars per week, 
or to route delivery salesmen, provided they regularly receive not 
less than thirty ($30.00) dollars per week in cities of 100,000 popula- 
tion or over and not less than twenty-five ($25.00) dollars per week 
in cities, towns, or places of less than 100,000 population, or to 
outside salesmen. 

Section 8. No employee shall be permitted to work more than six 
(6) days in any seven (7) day period. 

Seciton 9. 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 exceeds the maximum permitted 
herein. 

Article IV — Minimi^m Wages 

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

Sixteen ($10.00) dollars per week in cities of over 500,000 popula- 
tion, or in the immediate trade area thereof; 

Fifteen ($15.00) dollai's ])er v\'(>ek in cities having between 250,000 
and 500,000 population, or in the immediate trade area thereof; 

Fourteen ($14.00) dolhirs per week in cities, towns, or places of 
less than 250,000 population, or in the innnediate trade area thereof; 



203 

except that office boys and messengers may be paid not less than two 
($2.00) dollars below the aforesaid minima; provided, however, 
that not more than ten (10%) i)er cent of the total number of office 
employees of any one em])loyer shall be so classified and ])aid, but 
each employer shall be entitled to at least one office boy or messenger. 

SKcnoN 2. No watchman shall be paid less than at a rate of 
twenty ($20.00) dollars per week. 

Section 3. No employee other than those covered by Sections 1 
and 2 shall be paid less than at a rate of forty (400) cents per hour.^ 

Sp:ctiox 4. The weekly compensation for employment in excess of 
the minimum wages established, notwithstanding tluit the hours of 
work in any such employment may be reduced, shall not be reduced 
as a result of the atloi)tion of this Code, and the Y>ay for such em- 
])loyment shall be increased by an equitable readjustment of all pay 
schedules in order to maintain fair differentials existing prior to the 
ado])tion of this Code. It shall be the duty of the Code Authority 
for the Yeast Industry to observe the operation of this Section and 
recommend to the Administrator further provisions as experience 
may indicate to be appropriate to eflFectuate its purpose. 

Section 5. Female employees performing substantially the same 
work as male employees shall be paid at the same rate of pay as male 
employees, provided that, when male employees perform work cus- 
tomarily done by female em])loyees, only during hours when female 
labor is i)rohibited by applicable law, it shall not be jequired that 
female employees doing such work at other times be paid at the same 
rate as such male employees. 

Section 6. Time and onedialf the normal rate shall be paid for all 
time worked (except by outside salesmen, route delivery salesmen, 
and persons employed in a managerial, executive, and technical 
capacity as set out in Section 7 of Article III, and watchmen) on 
Sundays, (where permitted under Article III hereof), or on State 
and National holidays. 

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

Section 8. Wages shall be exempt from fines and rebates and from 
charges and deductions, except charges and deductions for contri- 
butions to pension, insurance, or benefit funds, voluntarily made by 
employees, or required by law, or deductions for other purposes when 
provision therefor is made in a written contract between emploj'er 
and employees. All such contracts must be kept on hie by each 
employer for at least six (G) nu)nths after the teinuination of the 

'■ Miniiiuim rate 4ot' per hour — See paragraiih 2 of order approving this Code. 



204 

contract, and such contract shall be ojioii to the inspection of the 
Administrator or his agent. 

Article V — Gexeual Labor Provisions 

Section 1. No person under sixteen (IC) 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 Authorit,y shall sub- 
mit to the Administrator within ninety (90) days after the effective 
date of this Code, a list of such operatit)ns or occupations. In any 
jurisdiction, an employer shall be deemed to have complied wnth this 
provision as to age if he shall have on file a certificate or permit duly 
signed by the Authority in such jurisdiction em])owered to issue 
employment or age certificates or permits showing that the employee 
is of the required age. 

Section 2. It is hereby provided: 

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

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

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

Section 3. Employers shall not change the method of p.ayment 
of compensation or reclassify employees or duties of occupations 
performed by employees, or discharge employees to reemploy them 
at lower rates, or engage in any other subterfuge, so as to defeat 
the purpose of the Act or the provisions of this Code, 

Section 4. No provision in this Code shall supersede any State 
or Federal law which imposes more stringent requirements on em- 
ployers as to age of employees, wages, hours of work, or as to safety, 
health, sanitary or general working conditions, or insurance, or fire 
protection, than are imposed by this Code. 

Section 5. All employers shall })ost and keep posted copies of the 
provisions of this Code dealing with hours of labor, minimum wages, 
and general labor provisions, in conspicuous places accessible to all 
employees. Every member of the Industry shall comply with all 
rules and regulations relative to posting which may from time to 
time be prescribed by the Administrator. 

Section C, Employers shall make payment of all wages due in 
lawful currency or by negotiable check, checks to be payable on 
demand. Agreements of hire provide that wages shall be paid at 
least as often as every week and salaries at least as often as every 
month. 



205 

Section 7. Every einj)l(n'oi' shall make reasonnl)le ])r()visinn for 
the safety and health of his employees at the place aiul during the 
horn's of their emj)loyment. 

Ainici.K \'l — Ad.aiixistuation 

Section 1. Esfahl'ttihrnod of Code, xiu^horltij. — (a) A Code 
Authority is herehy established consisting of five (5) persons to bo 
selected in the foUowinir niannei-: 

The Code Committee, as ])r()ponents of this Code, is hereby desij;;- 
nated as the a<2,ency to <'onihict an election of the members of the 
Code Authority within ten (10) days after the etl'ective date of this 
Cod®. 

(b) Every member of the Industry shall be entitled to one (1) 
vote for each of the five (5) members of the Code Authority to be 
elected. At each election the voting- may be by i)erson, by proxy, by 
letter, or by telegram and sucli voting may be cumulative. 

(c) The term of office of members of the Code Authority shall be 
for a period of one (1) year or until their respective successors are 
elected. All vacancies in the membership of the Code Authority 
shall be filled for the unexpii-ed term by the same method as was 
used in the election of the original members. All elections for mem- 
bers of the Code Authority following the first election shall be con- 
ducted by the Code Authority in the same manner as is provided in 
Subsection (b) of this Section for the first election. 

(d) In addition to membership as above provided, there may be 
one (1) to three (;3) members, without vote, to be known as Admin- 
istration Members, to be appointed by the Administrator, to serve 
for such terms as he may specify. The representatives who may be 
appointed by the Administrator, together v/ith the Administrator, 
sUall be given notice of and shall be permitted to sit at all meetings. 

Section 2. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Author- 
ity shall (1) impose no inequitable restrictions on membership, and 
(2) submit to the Administrator true copies of its articles of associa- 
tion, by-laws, regulations, and any amendments when made thereto, 
together with such other information as to membershi]5, organization, 
and activities as the xVdministrator 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 Authority. 

Section 4. If the Administrator shall determine tliat any action of 
a code authority or any agency thereof maj' be unfair or unjust or 
contrary to the public interest, the Administrator may require that 
such action be suspended to afford an opjooriunity for investigation 
of the merits of such action and further consideration bv such code 



206 

authority or ag^ency pending final action which shall not be effective 
unless the Adniinistrator approves or unless he shall fail to disap- 
prove after thirty (;30) days' notice to him of intention to proceed 
with such action in its original or modified form. 

Section 5. Nothing contained is this Code shall constitute the 
members of the Code Authority partners for any purpose, nor shall 
any member of the Code Authority be liable in any manner to any- 
one for any act of any other member, officer, agent, or employee of 
the Code Authority, nor shall any member of the Code Authority 
exercising reasonable diligence in the conduct of his duties hereunder 
be liable to anyone for any action or omission to act under this Code 
except for his own willful malfeasance or non-feasance. 

Section 6. Forcers 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 
provide for the compliance of the Industry wdth 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 
repoi'ts as are required for the administration of the Code. In addi- 
tion to information required to be submitted to the Code Authority, 
members of the Industry 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 Industry of any existing obli- 
gations to furnish reports to any government agency. No individual 
reports shall be disclosed to any other member of the Industry or to 
any other party except to such governmental agencies as may be 
directed by the Administrator. 

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

(e) To make recommendations to the Administrator for the co- 
ordination of the administration of this Code with such other codes, 
if any, as may be related to the Industr3^ 

(f ) 1. It being found necessary in order to suj:)port the adminis- 
tration of this Code and to maintain the standards of fair comjieti- 
tion 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 
sha.ll be held in trust for the pui-poses of the Code; 

(b) To submit to the Administrator for his a})proval, subject to 
such notice and opportunity to be heard as he may deem necessary 



207 

(1) an itemized bud ^lot of its ostimatod oxponsos for the forep^oing 
purposes, and (2) aii vM|ui(able l)asis upon which tlio funds neci'ssary 
to suj)p<)rt such hudijet shall bo conti'ibuted by members of the 
Industry ; 

(c) Aft^r such budc:et and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable con- 
tribution as above sec forth by all meuibers of the Industry, and to 
that end, if necessary, to institute lei>al ])roceedin<>s thei'efor in its 
own name. 

2. Eacli member of the Industry shall ])ay his or its equitable con- 
tribution to the expenses of the mainteiumce 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; v\dth the Code and contributing to 
the expenses of its administration as hereinabove provided, shall be 
entitled to participate in the selection of members of the Code Au- 
thority or to receive the l)enefits of any 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 approA'al of the Administrator; and no subsequent 
budget shall contain any deficiency item for expenditures in excess 
of ])rior budget estimates except those which the Administrator 
shall liavo so approved. 

(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 w^ith 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 or hearing as he may specify. 

(h) To provide appropriate facilities for arbitration, and subject 
to the approval of the Administrator, to prescribe rules of proce- 
dure and rules to effect complia.nce with awards and determinations. 

(i) The powers and duties of the Code Authority as defined 
herein may be delegated by said Code Authority to such committees 
of its own membership as the Code Authority may select ; provided, 
however, that such powers and duties so delegated shall be s]:)ecified 
in writing and approved by a majority of the membei*s of the Code 
Authority. 

(j) The Code Authority shall create a committee on safety and 
health which will study and recommend to the Administrator 
within six (G) months after the effective date of this Code, standards 
for safety and health for employees of the Industry. 

(k) To appoint a Trade Practice Committee which shall meet 
wdth Trade Practice Connnittees appointed under such other codes 
as may be related to the Industry for the purpose of formulating 
fair trade practices to govern relationships between employers under 
this Code and 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. 



208 
Article VII — Fair Trade Practice Provisions 

Section 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 VN-ithout 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. 

Section 2. Mkhranding. — No member of the Industry shall brand 
or mark any goods in any manner Avhich tends to or does deceive or 
mislead purchasers with respect to the brand, quality, quantity, or 
origin of such goods. 

Section 3. False BiUing. — No member of the Industry shall know- 
ingly withhold from or insert in any quotation or invoice any state- 
ment which makes it inaccurate in any material i)articular. 

Seciton 4. Threats of Laxi' tSu/'ts. — No member of the Industry 
shall publish or circulate unjustified or unwarranted threats of legal 
proceedings which tend to or have the effect of harassing competitors 
or intimidating their customers. Failure to prosecute in due course 
shall be evidence that any such threat is unwarranted or unjustified. 

Section 5. Bt-ihing Employees. — No member of the Industry 
shall give, permit to be given, or offer to give, anything of value for 
the purpose of influencing or rewarding the action of any employee, 
agent, or representative of another in relation to the business of the 
employer of such employee, the principal of such agent or the repre- 
sented jDarty, without the knowledge of such emploj^er, principal or 
part}^ This provision shall not be construed to prohibit free and 
general distribution of articles commonly used for advertising except 
so far as such articles are actually used for commercial bribery as 
hereinabove defined. 

Section 6. Interference with Another'' s Contract. — No member of 
the Industry shall attempt to induce the breach of an existing con- 
tract between another member of the Industry and his source of 
supply ; nor shall any such member interfere with or obstruct the per- 
formance of such contractual duties. 

Section 7. Coercion. — No member of the Industry shall require 
that the purchase or lease of any goods be a prerequisite to the pur- 
chase or lease of any other goods. 

Section 8. Free Goods. — No member of the Industry shall give to 
any buyer any yeast, free of charge, except that nothing herein con- 
tained shall prohibit a member from furnishing samples of a sufficient 
amount to demonstrate the quality of such yeast; provided, that such 
sampling is not employed as a medium of reducing the cost. A 
sampling period shall not exceed five (5) days in any six (6) months 
period. 

Section 9. Secret Rebates. — No member of the Industry shall 
secretly offer or make any payment or allowance of a rebate, refund, 
commission, credit, unearned discount or excess allowance, whether 
in the form of money or otherwise, nor shall a member of the Indus- 
try, for the purpose of influencing a sale, secretly offer or extend to 



209 

any customer any sporical servit-o or pi-ix ilcfre not oxtondod to all 
customers of the same class. 

8i-:cTioN 10. Loans. — No member of (he Industry shall make loans 
to customers or prospective customers, either directly or indirectly, 
or Guarantee or endorse for the repayuient of any loan, as a means of 
securin<4- for themselves all (or the bulic of) such customers' orders by 
placiufi: -^iK^'li customers under lefjal or moral obligations not to deal 
with other members of the Industry. Nothiufr herein contained shall 
affect the extension of usual and ordinary connnercial credits foi- the 
products of the Industry sold and delivered. 

Section 11. Blacldhtm(j. — No member of the Industry shall join 
or participate with other members of the Industry who with such 
member constitute a substantial number of meuibors of the Industry 
or who together control a substantial per cent 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), Avhich accomplishes the purposes of a black list. 

Article VIII — Modification 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of Section 10 (b) of the xVct, from time to time, to cancel 
or modify any order, approval, license, rule or regulation issued 
under Title I of said Act, and specifically, but without limitation, to 
the right of the President to cancel or modify his approval of 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, sucli modifications to be based upon application by members 
of the Industry to the Administrator and such notice and hearing 
as he sliall specify, and to become effective on approval of the 
Administrator. 

Article IX — Export Trade 

Sectton 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 — Monopolies 

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

Article XI — Effecti\e Ti^nie 

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



Approved ('ode No. 475. 
Registry No. 130-02, 



o 



Approved Code No. 476 
CODE OF FAIR COMPETITION 

FOR THE 

HATTERS' FUR CUTTING INDUSTRY 

As Approved on July 3, 1934 



ORDER 



Code or Fair Competition for the Hatters' Fur Cutting 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 Hatters' Fur Cutting Industry, and a 
hearing having been duly held thereon and the annexed report on 
said Code, containing findings with respect thereto, having been made 
and directed to the President: 

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

1. That the provisions of this Code shall be in full force and effect 
for a period of ninety (90) days from the effective date hereof. 
Prior to the expiration of said period the Code iVuthority shall make 
recommendations to the Administrator in regard to the continuance 
■or amendment of any or all provisions of this Code. 

Hugh S. Johnson, 
Adtmnistrator for Industrial Recovery. 

Approval recommended : 
Sol a. Rosenblatt, 

Division Advunistrator. 

Washington, D.C, 

July 3, 193^. 

71729" 829-13 34 ( 211 ) 



KEPORT TO THE PRESIDENT 

The President, 

The 'White House. 

Sir : The Public Hearing on the Code of Fair Competition for the 
Hatters' Fur Cutting Industry as proposed by Hatters' Fur Cutters 
Association of the U. S. A., was conducted in the Commerce Building, 
Washington, D.C. on April 19, 1934. 

Every person who requested an appearance was fairly heard in 
accordance with regulations of the National Recovery Administra- 
tion. The Code has the approval of the Industrial and Labor Ad- 
visory Boards of the National Recovery Administration and of the 
Legal Division. The Code Conunittee, upon authorization of the 
Association, has also given assent to the final draft of the Code on 
behalf of the Industry. 

The Industry, as defined in the Code, includes the manufacturing, 
selling and distributing by manufacturers of hatters' furs, both blown 
and unblown, for an}^ purposes for which hatters' fur can be used. 
The raAv material of the Industry consists mainly of imported hare 
and rabbit skins, which skins are processed to give the fur fibre felt- 
ing qualities. The fur fibre is then cut away from the skin, packed 
and sold to the maufacturers of fur felt hat bodies. This Industry 
is entirely isolated from other industries processing fur, principally 
because this Industry performs no real dressing, tanning, or dyeing 
operation in any state of its manufacture, and it therefore does not 
require the type of skilled labor employed in the other fur manufac- 
turing industries. In another sense, its isolation is also caused by 
the fact that eighty to ninety per cent of its product is sold to a 
single class of customers, the aforesaid manufacturers of fur felt hat 
bodies. Ninet}^ per cent of the Industry is located within a radius of 
150 miles of New York City, and the hat manufacturing center of 
Danbury, Connecticut, contains fifty per cent of the Industry. 

The number of concerns engaged in this Industry in 1933 was 
thirty-five, which concerns employed a total of approximately^ 2,000 
employees. The number of employees at the end of 1933 represented 
an increase of approximately fifteen per cent over the number in early 
1933. This reemployment was caused largely by the operation of the 
President's Reemployment Agreement. From the figures of years 
prior to 1929 as compared with 1933, it would seem that although the 
employers have suffered a substantial decrease in dollar volume of 
business, employment decreased only fractionally in the Industry. 
The dollar volume of sales in 1929 was over $18,000,000 while in 1933 
the volume of business was apj^roximateh^ one-third of that. 

The submitting Association has been organized for thirty-five years 
and has given evidence of being properly equipped to assist in the 
administration of this Code. It represents approximately eighty per 

(212) 



213 

cent of the number of manufacturers in the United States and 
approximately ninety-five per cent of the Industry by volume of 
business and number of employees. 

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 establishes the minimum wage rates for employees of 
the Industry. 

Article V sets forth general labor provisions. 

Article VI provides for the organization of the Code Authority 
and defines its powers and duties. 

Article VII defines trade practices which are unfair and shall be 
eliminated. 

Article VIII provides for modification of the Code. 

Article IX states that the Code shall not permit monopolies. 

Article X deals with price increases. 

Article XI specifies the effective date. 

FINDINGS 

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

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try^ for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive 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 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 inclustry. 

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

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant 
association is an industrial association truly representativp of the 
aforesaid industry; and that the said association imposes no inequi- 
table restrictions on admission to membership therein. 

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



214 

(e) The Code is not desi2:ned 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, 
July 3, 1934. 



CODE OF FAIR COMPETITION FOR THE HATTERS' FUR 
CUTTING INDUSTRY 

Article I — PuKrosEs 

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 Hatters' Fur Cuttino; Industry, and its provisions shall be 
the standards of fair competition for such Industry and be binding 
upon every member thereof. 

Article II — Definition 

Section 1. The term " Hatters' Fur Cutting Industry ", or the 
term " Industry " as used herein, includes the manufacturing, selling 
and/or distributing by manufacturers of hatters' furs, both blown 
and unblown, for any purposes for which hatters' fur can be used, 
and such related branches or subdivisions as may from time to time 
be included under the provisions of this Code. 

Section 2. The term " member of the Industry ", as used herein, 
includes any individual, partnership, association, corporation, or 
other form of enterprise engaged in the Industry, either as an em- 
ployer or on his or its own behalf. 

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

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

Section 5. The term " President ", "Act ". and ''Administrator ", 
as used herein shall mean respectively the President of the United 
States, the National Industrial Recovery Act, and the Administrator 
for Industrial Recovery. 

Section 6. The term "Association " as used herein shall mean 
the Hatters' Fur Cutters Association of the U.S.A. 

Article III — Hours of Labor 

Section 1. No emplo3^ee shall be permitted to work in excess of 
forty (40) hours in any one week or eight (8) hours in any twenty- 
four (24) hour period, except as herein otherwise provided. 

Section 2. The provisions of this Article shall not apply to outside 
salesmen or to persons employed exclusively in a managerial or 
executive capacity who earn regularly thirty-five ($35.00) dollars or 
more per week. 

Section 3. Watchmen shall not be permitted to work in excess 
of eighty-four (84) hours in any two week period; provided that 

(215) 



216 

watchmen shall not be employed for direct labor on manufacturing 
operations. 

Section 4. No employee shall be permitted to work more than 
five (5) days in any seven (7) day period. 

Section 5. 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, exceeds the 
maximum permitted herein. 

Section 6. Any employer who does the work of a manufacturing 
or production employee shall be subject to the provisions of this 
Code as to hours of labor. 

Section T. The use of foremen on productive operations sliall be 
investigated by the Code Authority, and it shall make recommen- 
dations to the Administrator with respect to the regulations of such 
use, which upon his approval, after such notice and hearing as he 
may provide, shall become binding provisions of this Code. 

Article IV — Wages 

Section 1. No employee shall be paid less than at the rate of 
thirty-five (35) cents per hour, except as herein otherwise provided. 

Section 2. No person employed in clerical or office work shall be 
paid at less than the rate of fourteen dollars ($14.00) per week. 

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

Section 4. There shall be an equitable adjustment 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 proposal for adjustment in semi- 
skilled and skilled wages above the minimum. Upon approval by 
the Administrator, after such notice and hearing as he may prescribe, 
such proposal shall be a part of this Code ; provided, however, that in 
no event shall hourly rates of pay be reduced. 

Section 5. A person whose earning capacity is limited because of 
age or physical or mental handicap may be employed on light work 
at a wage below the minimum established by this Code if the 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 certifi- 
cate. 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 emploj^ee. 

Section 6. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees. 

Section T. The problem of learners in the Industry shall be stud- 
ied by the Code Authority and recommendations made to the Admin- 
istrator, which upon his approval, after such notice and hearing as 
he may specify, shall become binding provisions of this Code. 

(a) The number of learners employed by a member shall be lim- 
ited to five (5%) per cent of the total number of employees engaged 
in manufacturing operations, except in special instances as may be 



217 

determined by the Code Authority, subject to the approval of the 
Administrator; provided, however, that each member may employ at 
least one learner. 

(b) The minimum wage for learners shall be ten ($10.00) dollars 
a Aveek for their hrst two weeks in the Industry, and thereafter they 
shall receive an increase of one ($1.00) dollar per week until they 
reach the minimum wage. 

(c) No person shall be considered a learner for longer than his 
first five (5) weeks of emploj-ment in the Industry. Any time 
worked by a learner in the Industry shall be deemed a part of such 
learner's period of five (5) weeks, whether such time is worked con- 
tinuously, or in more than one factory, or for more than one 
employer, or at nu)re than one kind of operation. 

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 occuj^ations which are hazard- 
ous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator before August 1, 1934 a list of such 
operations or occupations. In the event of a claim of alleged viola- 
tion of this section, an emploj^er shall be deemed to have complied 
with the provisions of this section if he shall have on file and 
shall submit a certificate of age issued by the duh' authorized depart- 
ment of the State in which the employer operates, showing the age 
of the employee to be no less than 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 
employers of labor, or their agents, in the designation of such repre- 
sentatives or in self-organization or in other concerted activities for 
the purpose of collective bargaining or other mutual aid or 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, and 

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

Section 3. No employer shall reclassify employees or duties of 
occupations performed for the purpose of defeating the provisions 
of the Act or of this Code. 

Section 4. Within sixtj' (60) days after the etfe<!tive date of this 
Code, the Code Authority shall appoint a committee to cooperate w^ith 
the United States Public Health Service and a committee appointed 
by the Conference of State and Provincial Health Authorities of 
North America, in formulating and recommending for the approval 
of the Administrator, minimum standards of cleanliness, maintenance 
of equipment, and other sanitary and health safeguards. Upon the 
approval of such standards by the Administrator, members of the 



218 

Industry shall conform with such minimum standards, provided, how- 
ever, that nothing contained in this section shall relieve any member 
of the Industry from complying with any state or local laws, regula- 
tion or ordinances, neither prior to the formulation and approval of 
such standards, nor thereafter, if the requirements of such laws, regu- 
lations or ordinances are more stringent than the minimum standards 
approved by the Administrator pursuant to the foregoing provision. 

In addition to the foregoing, each employer shall provide for the 
safety of employees during the hours and at the places of their em- 
ployment. Standards of safety shall be submitted by the Code Au- 
thority to the Administrator within six (6) months after the effec- 
tive date of this Code. 

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

Section 6. 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. 

Article VI — Organization, Powers and Duties of 
THE Code ArrrHORiTY 

Section 1. A Code Authority is hereby constituted to cooperate 
with the Administrator in the administration of the Code as follows : 

(a) Seven (7) members to be selected by the Association. 

(b) One (1) member to represent members of the Industry un- 
affiliated with the Association, selected in a manner to be approved 
by the Administrator. 

(c) In addition to the above, three (3) members, without vote, may 
be appointed by the Administrator to serve for such terms as he may 
specify, one of whom may be appointed by the Administrator upon 
nomination by the Labor Advisory Board. 

Section 2. The Code Authority may appoint its own officers and 
employees and, except as herein provided, prescribe, subject to the 
approval of the Administrator, rules, regulations and By-Laws for 
ite procedure and the conduct of its business and affairs. 

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

Section 4. In order that the Code Authority shall at all ti)nes be 
truly representative of the Industry and in other respects comply 
with the provisions of the Act, the Administrator may provide such 
hearings as he may deem proper ; and thereafter if he shall find that 
the Code Authority is not truly representative or do^^^s not in other 
respects comply with the provisions of the Act, may require an 



219 

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

SKcnoN 5. Nothino; contained in this Code shall constitute the 
members of the Code Authority partners for any purposes. Nor 
shall any member of the Code Authority be liable in any mannoi- to 
anyone for any act of any other member, officer, agent or employee 
of the Code Authority. Nor shall any member of the Code 
Authority exercising reasonable diligence in the conduct of his duties 
hereunder, be liable to anyone for any action or omission to act 
under the Code, except for his own willful malfeasance or non- 
feasance. 

Section 6. If the Administrator shall at any time determine that 
any action of a Code Authority or any agency thereof may be unfair 
or unjust or contrary to the })ublic interest, the Administrator may 
require that such action be suspended to afford an opportunity for 
investigation of the merits of such action and further consideration 
by such Code Authority or agency pending final action, which shall 
not be effective unless the Administrator approves or unless he shall 
fail to disapprove after thirty (30) days' notice to him of intention 
to proceed with such action in its original or modified form. 

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 pro- 
visions of this Code. 

(a) To insure 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 establish a Trade Practice Complaints Committee, or Com- 
mittees, which shall receive complaints of violations of the trade 
practice provisions of this Code, make investigations thereof and 
take such further action as may be necessary in accordance with rules 
and regulations prescribed by the Administrator. 

(d) To obtain from members of the Industry through a Con- 
fidential Agency such information and reports as are required for 
the administration of the Code. In addition to information required 
to be submitted to the Code Authority, members of the industry 
subject to this Code shall furnish such statistical information as the 
Administrator may deem necessary for the purposes recited in Sec- 
tion 3 (a) of the Act to such Federal and State agencies as he may 
designate ; provided that nothing in this Code shall relieve any mem- 
ber 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 
othei- Governmental agencies as may be directed by the Admin- 
istrator. 

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

(f ) To investigate the impoi-tation of competitive articles into the 
United States on such terms or under such conditions as to render 



220 

ineffective or seriously endanger the maintenance of the Code, and 
act as the agency for making complaint in respect thereof to the 
President on behalf of the Industry. 

(g) To recommend to the Administrator uniform terms of sale, 
which upon approval by the x\.dministrator shall become binding 
provisions of 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 m.odifications of this 
Code wdiich 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 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 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. 

Section 8. It being found necessary to support the Administra- 
tion of this Code, in order to effectuate the policy of the Act and to 
maintain the standards of fair competition established hereunder, 
the Code Authority is authorized : 

(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes, and to meet such obligations 
out of funds which shall be held in trust for the purpose 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 expenses for the foregoing 
purposes, and 

2. An equitable basis upon which the funds necessary to support 
such budget shall be contributed by all members of the Industry en- 
titled to the benefits accruing from the maintenance of such stand- 
ards, and the administration thereof; 

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

Section 9. Each member of the Industry shall pay 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. 
Only members of the Industrj^ complying with the code and contrib- 
uting to the expenses of its administration as hereinabove provided, 
shall be entitled to participate in the selection of members of the Code 
Authority or to receive the benefits of any of its voluntary activities. 

Section 10. The Code Authority shall neither incur nor pay any 
obligation in excess of the amount thereof as estimated in its approv- 
ed budget, except upon approval of the Administrator ; and no sub- 
sequent budget shall contain any deficiency item for expenclitures in 
excess of prior budget estimates except those which the Administrator 
shall have so approved. 



221 

Section 11. 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 may be nominat<?d by the Labor Advisory 
Board of the N.R.A. and appointed by the Administrator. The em- 
ploj'er representative shall be chosen by the Code Authority. Such 
committee shall deal with complaints and disputes relatino; 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. 

Akticle VII — Trade Practice Rules 

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

(a) Inaccurate Advertising. — No member of the Industry shall 
use advertising (whether printed, radio, display or of anj^ other 
nature) or other representation which is misleading or inaccurate in 
any material particular or in any way misrepresents any commodity 
(including its use, trademark, grade, quality, quantity, origin, size, 
substance, character, nature, finish, material content or preparation) 
or credit terms, values, policies, services, or the nature or form of the 
business conducted. 

(b) False Billing. — No member of the Industry shall knowingly 
withhold from, or insert in, any quotation or invoice any statement 
that makes it inaccurate in any material particular. 

(c) Inacc^orate Labeling. — No member of the Industry shall brand 
or mark or pack any commodity in any canner which tends to deceive 
or mislead purchasers wath respect to the brand, grade, quality, quan- 
tity, origin, size, material content or preparation of such commodity. 

(d) Inaccurate Reference to Competitors. — No member of the In- 
dustry shall use advertising or other representation which refers 
inaccurately in any material particular to any competitors, or their 
commodities, prices, values, credits, terms, policies or services. 

(e) Threat of Law Suits. — No member of the Industry shall pub- 
lish or circularize unjustified or unwarranted threats of legal pro- 
ceedings which tend to or have the effect of harassing competitors 
or intimidating their customers. 

(f) Secret Rehates. — No member of the Industr}' shall secretly of- 
fer or make any payment or allowance of a rebate, refund, commis- 
sion, credit, unearned discount or excess allowances, whether in the 
form of money or otherwise, for the purpose of influencing a sale, 
nor shall a member extend to any customer any special service or 
privilege not openly extended to all customers of the same class, 
for the purpose of influencing a sale. 



222 

is) ConsigmnerU or Memorandwm Shipments. — No member of 
the Industry or his agent shall ship or deliver any of the products 
of this Industry on what is known as " consignment " or ^ memo- 
randum " arrangement, except that a member of the industry may 
ship such products for selection or approval, upon condition that 
such products be returnedj or shipped for return, within not more 
than three (3) days from its receipt by the consignee. 

(h) BHhing Employees. — No member of the industry shall give, 
permit to be given, or oiler to give, anything of value for the pur- 
pose of influencing or rewarding the action of any employee, agent, 
or representative of another in relation to the business of the em- 
ployer of such employee, or the principal of such agent, without the 
knowledge of such employer or principal. 

(i) Interference lolth Another'' s Contracts. — No member of the 
industry shall attempt to induce the breach of an existing contract 
between a competitor and his customer, or source of supply; nor 
shall any such member interfere with or obstruct the perforniiince 
of such contractual duties or services. 

Article VIII — MoDincATioN 

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

Section 2. Such of the provisions of this Code as are not required 
to be included herein by the Act may, with the approval of the 
Administrator, be raodihed or eliminated in such manner as may 
be indicated by the needs of the public, by changes in circumstances, 
or by experience. 

Article IX — ISIonopolies 

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

Article X — Price Increases 

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

Article XI — Eftectivb Date 

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

Approved Code No. 476. 
Registry No. 233-10, 

O 



AMENDMENTS 



76054—34 2 



Approved Code No. 281 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LAUNDRY TRADE 

As Approved on June 13, 1934 



ORDER 



Modification of Code of Fair Competition for the Laundry Trade 

WHEREAS, the Code of Fair Competition for the Laundry 
Trade, approved by the President of the United States on February 
16, 1934, provides in its Executive Order that 

" The said Code of Fair Competition be and is hereby approved 
for a period of ninety (90) days, within which period the adequacy 
of the minimum wages established in this Code shall be given further 
study by the Administrator . . .", and 

WHEREAS, said Code further provides that a report and recom- 
mendations on the adequacy of said minimum wages, shall be sub- 
mitted by me to the President, and 

WHEREAS, the said Code has been extended for an additional 
period of thirty (30) days, which extension was not a sufficient 
extension of time to enable me to determine the adequacy of said 
minimum wages; 

now;, THEREFORE, I, Hugh S. Johnson, Administrator for 
Industrial Recovery, by virtue of the authority vested in me by 
Executive Orders of the President of the United States, including 
Executive Order Number 6543-A, dated December 30, 1933, and 
otherwise, do hereby modify said Code by extending its date of 
termination for an additional period of ninety (90) days. 

Hugh S. Johnson, 
Administrator fm^ Industrial Recovery. 

Recommended by : 
A. R. Glancy, 

Division Administrator. 

Washington, D.C, 

June 13, 1931^. 

Approved Code No. 281 — Amendment No. 2. 
Registrj^ No. 1735-2-11. 

(2-23) 



Approved Code No. 349 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MAYONNAISE INDUSTRY 

As Approved on June 13, 1934 



ORDER 



Modification of Code of Fair Competition for the Mayonnaise 

Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to the Code of Fair Competition for the Mayonnaise Industry, 
and opportunity to be heard having been afforded all members of 
said Industry and any objections filed having been duly considered, 
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 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise, do hereby incorporate, by reference, said 
annexed report and do find that said 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 amended to include an approval of said Code in its 
entirety as amended. 

Hugh S. Johnson, 
Administrator for Indiistrial Recovery. 

Approval recommended : 
Armin W. Riley, 

Division Administrator. 

Washington, D.C, 

July 13, 193J^. 

(225) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on an amendment of Subsection (j), Section 
1, Part B of Article VI of the approved Code of Fair Competition 
for the Mayonnaise Industry, number 349. This Code was approved 
by me on March 21, 1934. 

Pursuant to Executive Order No. 6678, dated April 14, 1934, the 
Code Authority for the Mayonnaise Industry, in accordance with 
Section 2 of Article XII of said Code, having found it necessary in 
order to support the administration of tliis Code and to maintain 
standards of fair competition, established by this Code, and to ef- 
fectuate the policies of the Act, has made application for an amend- 
ment of said Code in order to provide for a method of assessment 
and a budget to support the expense of the administration of this 
Code. 

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

I find that : 

(a) The amendment to said code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for 
the general welfare by promoting the organization of industry for 
the purpose of cooperative action of labor and management under 
adequate governmental sanction and supervision, by eliminating un- 
fair competitive practices, by promoting the fullest possible utiliza- 
tion of the present productive capacity of industries, by avoiding 
undue restriction of production (except as may be temporarily re- 
quired), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provision of said Title of said Act, including without limita- 
tion sub-section (a) of Section 3. sub-section (a) of Section 7 and 
sub-section (b) of Section 10 thereof. 

(c) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) 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. 

(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 
amendment. 

In accordance with Executive Order No. 6678, dated April 14, 
1934, the amendment of this Code has been approved by me. 
Respectfully, 

Hugh S. Johnson, 
June 13, 1934. Ad>immstrator. 

(226) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE MAYONNAISE INDUSTRY 

Delete subsection (j) of Section 1, Part B, of Article VI. and insert 
in lieu thereof the following: 

(j) 1. It being found necessary in order to support the adminis- 
tration of this Code and to maintain the standards of fair competition 
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 necessary 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which, the funds necessary 
to support such budget shall be contributed by members of the 
industry ; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable 
contribution as above set forth by all members of the industry, and 
to that end, if necessary, to institute legal proceedings therefor in 
its ow^n name. 

2. Each member of the industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Author- 
ity, determined as hereinabove provided, and subject to rules and 
regulations pertaining thereto issued by the Administrator. Only 
members of the industry complying with the code and contributing 
to the expenses of its administration as hereinabove provided, shall 
be entitled to participate in the selection of members of the Code 
Authority or to receive the benefits of any 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; and no subsequent 
budget shall contain any deficiency item for expenditures in excess 
of prior budget estimates except those which the Administrator shall 
have so approved. 

Approved Code No. 349 — Amendment No. 1. 
Registry No. 146-1-01. 

(227) 



Approved Code No. 363 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MEN'S NECKWEAR INDUSTRY 
As Approved on June 13, 1934 



ORDER 



Amendment to Code of Fair Competition for the Men's Neckwear 

Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment for the Code of Fair Competition for the Men's Neckwear 
Industry, and hearings having been duly held thereon and the an- 
nexed 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 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate, by reference, said 
annexed report and do find that said amendment and the Code as 
constituted after being amended comply in all respects with the per- 
tinent 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 amended to include an approval of said Code in its entirety 
as amended. 

Hugh S. Johnson, 
AdfTiinistrator for Industrial Recovery. 

Approval recommended : 
Sol a. Rosenblatt, 

Division Administrator. 

Washington, D.C, 

June 13, 1931^. 

(229) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : The Public Hearing on a proposed amendment to the Code of 
Fair Competition for the Men's Neckwear Industry was conducted on 
Thursday, May 10th in Room 109 of the Raleigh Hotel, Washington, 
D.C Present at the hearing were members and duly authorized 
representatives of the Men's Neckwear Code Authority, as well as 
representatives of individual members of the Men's Neckwear In- 
dustry who had requested opportunity to be heard on the proposed 
amendment. All those present were fairly heard in accordance with 
the usual requirements of the National Recovery Administration 
and were questioned by the Deputy Administrator and his advisors. 

The Code for the Men's Neckwear Industry as approved on March 
24, 1934, did not contain a provision requiring that a special N.R.A. 
label be attached to the products of the Industry as the majority 
of other Codes in the Apparel Trades have required. 

The Code Authority for the Men's Neckwear Industry on April 
14th recommended to the Administrator that the Men's Neckwear 
Code be amended to require that a special N.R.A. label be attached 
to all products manufactured subject to the jurisdiction of the Men's 
Neckwear Code. 

Briefly stated, this amendment provides that the special N.R.A. 
label, which is to be issued exclusively by the Code Authority, shall 
symbolize to purchasers of men's neckwear, the conditions under 
which such merchandise is manufactured. Subject to the approval 
of the Administrator, the Code Authority is empowered to establish 
rules and regulations and appropriate machinery for the issuance of 
labels and for the inspection, examination and supervision of the 
practices of employers using such labels. 

Each label is to bear a registration number which will enable the 
Code Authority to identify the source of manufacture of all pro- 
ducts of the Industry. The charge made by the Code Authority 
for such labels is made subject to the supervision and rules and 
regulations of the Administrator. 

According to the testimony presented at the Public Hearing by 
the representatives of the Code Authority, the use of a special Code 
Authority label is the most effective means known of securing com- 
pliance with the provisions of the Codes of Fair Competition in the 
Apparel Manufacturing Trades. Not only does the use of the label 
and the issuance thereof by the Code Authority serve as a means of 
bringing the existence and location of all members of the Industry 
to the att/cntion of the Code Authority; the use of the label also 
serves as the basis of obtaining valuable information from all mem- 
bers of the industry, with respect to compliance with labor and trade 
practice provisions of the Code. 

(230) 



231 

The Deputy Adniiinstrator in his final report to me on this amend- 
ment to said Code, havin<ij found as herein set forth and on the basi*? 
of all the proceedings in this matter: 

I find that : 

(a) The amendment to said Code and the Code as amended is 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare b}^ 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 
government sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by 
increasing the consumption of industrial ancl agricultural products 
through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating 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 amendments on behalf of the Industry as a whole. 

(d) Tlie amendments and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them, 

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

For these reasons, this amendment has been approved. 
Respectfully, 

Hugh S. Johnson, 

AdTThinistrator. 
June 13, 1934. 



AMENDMENT TO CODE OF FAIK COMPETITION FOR THE 
MEN'S NECKWEAR INDUSTRY 

The following shall be added as Article XI to the Code : 

Article XI — Labels 

1. In accordance with the provisions of this Article all products 
made in the Industry as defined in paragraph 1 of Article I of the 
Code shall bear an N.R.A. label to symbolize to purchasers of said 
products the conditions under which they were manufactured. The 
Code Authority shall have the exclusive right to issue and furnish 
said labels to the members of the Industry. 

The Code Authority, subject to the approval of the Administrator 
and in accordance with such regulations as he may from time to time 
issue, shall establish rules and regulations governing the appropriate 
machinery for the issuance of labels and for the inspection, examina- 
tion and supervision of the practices of employers using such labels. 

2. Each label shall bear a registration number, (serial or other- 
wise, as the Code Authority may determine), especially assigned to 
each employer, which shall be sewn to the product and remain 
attached thereto when sold, shipped or distributed by any member 
of the Industry. Any member of the Industry may apply to the 
Code Authority for a permit to use such N.R.A, labels, which per- 
mit shall be granted only when the application for use thereof shall 
be accompanied by a certificate of compliance with this Code signed 
by the applicant in such manner and form as shall be determined by 
the rules and regulations of the Code Authority approved by the 
Administrator. Said permit shall continue in force only so long as 
the recipient shall comply with the Code and the rules and regula- 
tions of the Administrator and of the Code Authority relating to 
labels. 

3. All products made prior to the effective date of the rules and 
regulations of the Code Authority relating to the issuance and use of 
labels and in the stock of any member of the industry on the effective 
date of this Article, may have securely attached to the box, cover, 
package, container or other wrapping of said products a sticker or 
label in such form as may be determined by the Code Authority in 
its rules and regulations. 

4. The charge made by the Code Authority for labels shall at all 
times be subject to the supervision and rules and regulations of the 
Administrator and shall be not more than an amount necessary to 
cover the cost of said labels, including printing and distribution, and 
the reasonable cost of the administration and supervision of the use 
thereof as hereinbefore set forth. The cost of stickers shall at no 
time exceed the actual cost thereof to the Code Authority plus the 
cost of distribution to members of the Industry. 

(232) 



233 

5. The rules and regulations set up by the Code Authority pur- 
suant to this Article shall become binding upon all members of the 
Industry when approved by the Administrator and violation thereof 
shall be deemed a violation of the Code of Fair Competition for this 
Industry. 

6. This Article shall become effective thirty (30) days after 
approval." 

Approved Code No. 363 — Amendment No. 1. 
Registry No. 248-1-02. 



Approved Code No. 124 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MOTION PICTURE INDUSTRY 

As Approved on June 13, 1934 



ORDER 



Modification of Code of Fair Competition for the Motion Picture 

Industry 

An application having been duly made by the Code Authority 
for the Motion Picture Industry, pursuant to and in full compliance 
with the provisions of Article IX, Part 2 of the Code of Fair Compe- 
tition for the Motion Picture Industry, for approval of the amend- 
ment to said Code hereinafter set forth, and the annexed report on 
said amendment, containing findings with respect thereto having 
been made and directed to the President : 
The proposed amendment to said Code is as follows : 
A new Subsection (C) to be added to Article VI, Part, 1, Section 7 : 
"(C) Local Clearance and Zoning Boards, in addition to the 
powers and duties otherwise provided for in this Code shall, when 
directed so to do by the Code Authority, receive any and all pro- 
tests from Motion Picture Exhibitors against any existing clearance 
and zoning as to their respective theatres alleging that such clear- 
ance and zoning is unreasonable in length or area. The issue raised 
by such protests shall be decided by the Local Clearance and Zon- 
ing Boards after notice and hearing to the parties affected, and 
pursuant to the procedure and subject to such rights of appeal as 
are provided in this Article. The Code Authority may direct that 
the duties of the Local Clearance and Zoning Boards shall be per- 
formed and discharged by the hearing and deciding of protests as 
provided in this Subsection, instead of formulating schedules as 
provided in Article VI, Part I, Sections 1 and 3." 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to the Authority vested in me do hereby incorporate by 
reference said annexed 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 Title I of the National Industrial Recovery Act, 

(235^ 



236 

and do hereby order that said amendment be and it hereby is 
approved. This approval and the above amendment shall not become 
effective until twenty (20) days after this date, unless good cause to 
the contrary be shown prior thereto, and a subsequent Order is issued. 

Hugh S. Johnson, 

Administrator. 
Approval recommended: 
Sol a. Rosenblatt, 

D iv hi on, A dminis trator , 

Washington, D.C, 

June 13, 1934. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Deputy Administrator in his final report to me on the 
amendment of the Code of Fair Competition for the Motion Picture 
Industry having found as herein set forth and on the basis of all 
the proceedings in this matter : 

I find that: 

(a) The amendment of 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 maintaining 
united action of labor and management under adequate govern- 
mental sanction and supervision, by eliminating unfair competitive 
practices, by promoting the fullest possible utilization of the present 
productive capacity of industries, by avoiding undue restriction of 
production (except as may be temporarily required), by increasing 
the consumption of industrial and agricultural products through in- 
creasing 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 I of the National Industrial Recovery 
Act, including without limitation Subsection (a) of Section 3, Sub- 
section (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 wdiole. 

(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 w^ill 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. 

Said amendment is accordingly approved. 
Respectfully, 

Hugh S. Johnsox, 

Administrator. 
June 13, 1934. 

7(i054— 34 -.i (237) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE MOTION PICTURE INDUSTRY 

A new subsection (c) to be added to Article VI, Part I, Section 7 : 
(c) Local Clearance and Zoning Boards, in addition to the powers 
and duties otherwise provided for in this Code shall, when directed 
so to do by the Code Authority, receive any and all protests from 
Motion Picture Exhibitors against any existing clearance and zoning 
as to their respective theatres alleging that such clearance and zoning 
is unreasonable in length or area. The issue raised by such protests 
shall be decided by the Local Clearance and Zoning Boards after 
notice and hearing to the parties alfected, and pursuant to the pro- 
cedure and subject to such rights of appeal as are provided in this 
Article. The Code Authority may direct that the duties of the Local 
Clearance and Zoning Boards shall be performed and discharged by 
the hearing and deciding of protests as provided in this Subsection, 
instead of formulating schedules as provided in Article VI, Part 1, 
Sections 1 and 3. 

Approved Code No. 124 — Amendment No. 1. 
Registry No. 1639-03. 

(238) 



Approved Code No. 88 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BUSINESS FURNITURE, STORAGE EQUIPMENT 
AND FILING SUPPLY INDUSTRY 

As Approved on June 15, 1934 



OEDER 



Approving Amendment of Code of Fair Competition for the 
Business Furniture, Storage Equipment and Filing Supply 
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 Business Furniture, 
Storage Equipment and Filing Supply Industry, and hearings 
having been duly held thereon and the annexed report on said 
Amendment, containing findings with respect thereto, having been 
made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate, by reference, said 
annexed report and do find that said 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. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
C. E. Adams, 

Division Administrator. 

Washington, D.C. 

June 15, WS.'i. 

(239) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : Pursuant to Articles XI and XII of the Code of Fair Com- 
petition for the Business Furniture, Storage Equipment and Filing 
Suppl}^ Industry, approved on November 4, 1933, the National Emer- 
gency Committee, the Code Authority for the above Industry, has 
submitted a request for the amendment of Article II of the Basic 
Code for the purpose of listing the Industry Products of the Fire 
Resistive Safe and the Filing Supply Industries. This Amendment 
will, upon the separate approval of the two proposed Supplemental 
Codes, make possible the specific application of the provisions of 
said Basic Code to each of the new divisions. 

A hearing on this Amendment was conducted in Washington on 
December 20, 1933 and every person who requested an appearance 
was properly heard in accordance with statutory and regulatory 
requirements. 

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

I find that : 

(a) The Amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for the 
general welfare by promoting the organization of industry for the 
purpose of cooperative action among trade groups, by inducing and 
maintaining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive ]:)ractires, by jn-omoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by in- 
creasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the 
})ertinent provisions of said Title of said Act, including without 
limitation Subsection (a) of Section 3, Subsection (a) of Section 7 
and Subsection (b) of Sc. tion 10 thereof. 

((;) 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 w.ll not permit monopolies or monopolistic practices. 

(240) 



241 

(e) The Amcndnient 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, this Amendment has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dminis trator. 
June 15, 1934. 



AMEN])MENT TO CODE OF FAIR COMPETITION FOR 
THE BUSINESS FURNITURE, STORAGE EQUIPMENT 
AND FILING SUPPLY INDUSTRY 

Article II of the Basic Code is amended by the addition of the 
following two divisions, with their respective industry products, to 
the four already included under the heading, " The Divisions hereby 
•established are as follows : ". 
Fire Resistive Safe Division : 
Fire resistive safes. 
Record and storage safes. 

Vault doors (except Bank and Security Vault Doors). 
Insulated record desks. 
Insulated filing cabinets. 
Insulated traj^s and containers. 

Burglary and robbery resistive chests and lockers. 
Filing Supply Division : 

Index Cards and Record Card forms. 

Vertical and card index guides and indexes. 

Filing folders, not handfolded and expanding, and with open 

encls. 
Celluloid index tab strips. 

Approved Code No. S8 — Ameudme'it No. 1. 
Registry No. 1137-1-01. 

(242) 



Approved Code No. 363 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MEN'S NECKWEAR INDUSTRY 
As Approved on June 15, 1934 



ORDER 



Amendment to Code of Fair Competition for the Men's Neckwear 

Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment for the Code of Fair Competition for the Men's Neckwear 
Industry, and opportunity to file objections having been att'orded 
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 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate, by reference, said 
annexed report and do find that said amendment and the Code as 
constituted after being modified comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said amendment be 
and it is hereby approved, and that the previous approval of said 
Code is hereby amended to include an approval of said Code in 
its entirety as amended. 

Hugh S. Johnson, 
AdTninistrator for Industrial Recoveinj. 

Approval recommended: 
Sol a. Rosenblatt, 

Division Admmistrafior. 

Washington, D.C, 

June 15, 19S4. 

(243) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: An application has been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act for an Amendment to Article III, Section 5 of the 
Code of Fair Competition for the Men's Neckwear Industry ap- 
proved on March 24th, 1934. 

The Code Authority for the Men's Neckwear Industry, acting in 
accordance with Paragraph 3 of Article III, Section 5 of the Code, 
recommended on May 4th, 1934, a Schedule of Piece Rates to cover 
the manufacture of the oj^en margined, lined large end, French, 
small and closed, short pieced tie, a style of tie for which Piece 
Rates were not established in the original Code as approved. 

On May 29th a notice of opportunity to file objections to the Ad- 
ministrator's announced intention of approving said Piece Rates 
recommended by the Code Authority was issued by the Administrator 
and distributed by the Code Authority to every member of the 
Industry. The objections which were filed pursuant to this notice 
although carefully considered by the Deputy Administrator, were 
not deemed to be of sufficient importance to warrant the disapproval 
of the action taken by the Code Authority in recommending the 
approval of the piece-rates. 

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

I find that : 

(a) The amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and main- 
taining united action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by 
increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(244) 



245 

(c) The Code empowers the Code Authority to present the afore- 
said amendments 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 amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, these amendments have been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
June 15, 1934 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE MEN'S NECKWEAR INDUSTRY 

Amendment No, I 

The following is added to Article III, Section 5, Machine-Made, 
open-Margined lined large end, French, small and closed, short 
pieced tie. 

Per dozen 
Sewing margin lining on large end, small end French, 

piecing and running up $0. 14^ 

Turning , 05 

Pressing . 05 

Turning Pocket .0iy2 

Pressing Pocket . 01 V^ 

Tacking small end . 01 

(The above rates shall apply for ties selling at Wholesale at not 
more than Two and 25/100 Dollars ($2.25) per dozen.) 

Approved Code No. 363 — Amendment No. 2. 
Registry No. 248-1-02. 

(246) 



Approved Code No. 445 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BAKING INDUSTRY 

As Approved on June 16, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Modification of Code of Fair Competition for the Baking 

Industry 

WHEREAS, certain facts have been submitted by members of 
the Baking Industry indicating]: the necessity of certain modifica- 
tions in the Code of Fair Competition for said Industry, as 
approved by me on May 28, 1934 ; and 

WHEREAS, it appears necessary in the public interest to make 
such modifications in order to effectuate the purposes of the Act; 

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, upon due consideration of 
the facts and upon the recommendation of the Administrator for 
Industrial Recovery, hereby order : 

1. That the effective date of the Code of Fair Competition for 
the Baking Industry be and the same hereby is stayed until July 
9, 1934; 

2. That the second condition of the Order of May 28, 1934, approv- 
ing the said code, staying the provisions of Article VII, Section 6, 
until my further order, is hereby eliminated and the provisions of 
said section shall be in full force and effect on the effective date 
of said code. 

3. That the period within which the Code Authority is to report 
its investigation of the operation and the effect of the provisions of 
Articles III, IV, and V to me is hereby extended from the date 
designated in said order of approval to November 15, 1934. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dministrator. 
The White House, 

June 16^ 193If. 

Approved Code No. 445 — Amendment No. 1. 
Registry No. 101-23. 

(247) 



Approved Code No. 9 — Amendment No. 13 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 

As Approved on June 19, 1934 



OKDER 



Approving Amendments to the Code of Fair Competition for the 
Lumber and Timber 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 amendments 
to the Code of Fair Competition for the Lumber and Timber Prod- 
ucts Industries, and hearings having been duly held thereon and the 
annexed report on said amendments, containing findings with respect 
thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order 6543-A, dated December 30, 
1933, and otherwise, do hereby incorporate by reference, said an- 
nexed report and do find that said amendments and the Code as 
constituted after being amended comply in all respects w^ith the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said amendments 
be and they are hereby approved, and that the previous approval 
of said Code is hereby modified to include an approval of Said Code 
in its entirety as amended, such a]5proval and such amendments to 
take effect fifteen (15) days from the date hereof, unless good cause 
jto 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 : 
Barton W. Murray, 
Actg. Division Adnninistrator. 

Washington, D.C, 

June 19, 1934. 

(249) 



REPORT TO THE PRESIDENT 

The President, 

The 'White House. 

Sir : On August 19, 1933, you approved the Code of Fair Competi- 
tion for the Lumber and Timber Products Industries. 

This is a report on Amendments Nos. 62, 63 and 64 to that Code, 
Public Hearing on which was conducted in Washington, D.C. be- 
ginning March 27, 1934. These amendments will (a) clarify the 
nature of the products under the Wooden Package Division of the 
Code, (b) eliminate the overlapping of jurisdiction in certain of the 
subdivisions under that Division; and (c) include certain items, 
particularly wooden veneer baskets, which logically belong under 
these subdivisions but which are not included in the list of products 
as at present written. 

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

I find that : 

(a) The amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for the 
general welfare by promoting the organization of industry for the 
purpose of cooperative action among trade groups, by inducing and 
maintaining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair 
competitive practices, by promoting the fullest possible utilization of 
the present productive capacity of industries, by avoiding undue 
restrictions of production (except as may be 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 amendments and the Code as amended are not designed to 
and will not permit monopolies or monopolistic practices. 

(d) The amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(e) Those engaged in other steps of the economic ]:)rocess have not 
been deprived of the right to be heard prior to approval of said 
amendments. 

For these reasons, therefore, I have approved these amendments to 
the Code. 

Respectfully, 

Hugh S. Johnson, 

Admlnhtrator. 
June 19, 1934. 

(250) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE LUMBER AND TIMBER PRODUCTS INDUSTRY 

Amendment No. 62 : In Schedule "A" in the section headed " 24. 
Wooden Packaoe Divifiit)n " under " Division and Products " after 
the words " made of saAved lumber, veneer ", insert the words " Split 
wood ". In the last sentence delete the term " box factories " and 
insert in lieu thereof the term "" container factories ". 

AistENDMENT No. 03 : In Schedule ''A" in section " 27. Standard 
Container Subdivision " strike out the paragraph under the heading 
^' Subdivision and Products " and insert in lieu thereof the following: 

"The Standard Container Subdivision of the Wooden Package 
Division consists of manufacturers in the States of Florida, Georgia 
and Alabama of baskets and hampers made entirely of wood veneer, 
or wood veneer in combination with other materials, or wood in com- 
bination with other materials, and wooden veneer boxes, shooks, 
crates, trays, and the component parts thereof, including veneer 
hoops, basket and hamper bottoms." 

Amendment No. 64 : In Schedule "A" in section " 30-a. Veneer 
Fruit and Vegetable Package Division ", strike out the words 
" Veneer Fruit and Vegetable Package Division " and insert in lieu 
thereof the words "American Veneer Package Subdivision ". 

Strike out the heading" Division and Products" and insert in 
lieu thereof the words " Subdivision and Products ". 

Strike out the paragraph under the heading " Division and Prod- 
ucts " and insert in lieu thereof the following : 

" The American Veneer Package Subdivision of the Wooden 
Package Division consists of manufacturers, not included in other 
Subdivisions of the Wooden Package Division of this Code, of bas- 
kets and hampers made entirely of wood veneer, or wood veneer in 
combination with other materials, or wood in combination with 
other materials, and wooden veneer boxes, shooks, crates, trays, and 
the component parts thereof, including veneer hoops, basket and 
hamper bottoms." 

Approved Code No. 9' — Ameudnient No. 13. 
Registry No. 313-1-06. 

(251) 



Approved Code No. 327— Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MACHINE APPLIED STAPLE AND STAPLING 
MACHINE INDUSTRY 

As Approved on June 19, 1934 



ORDER 



Modification of Code of Fair Competition for the Machine 

Applied Staple and Stapling Machine 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 Machine Applied Staple 
and Stapling Machine Industry, and hearings having been duly held 
thereon and'the annexed report on said amendment, contammg find- 
ings 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 6543-A, dated December 30, 1933, 
and 'otherwise, do hereby incorporate by reference, said annexed 
report and do find tliat said amendment and the Code as constituted 
after being amended comply in all respects with the pertinent provi- 
sions and^'will promote tlie policy and purposes of said Title of 
said Act, and do hereby order that said amendment, which provides 
that Article IX be amended by adding the following new Section to 
become Section 10 : " No member of the Industry shall sell, or offer 
to sell, any products of the Industry, for which price terms have 
been filed ' pursuant to the provisions of Article VIII, Section 2, 
except in accordance with such price terms;" 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, 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 Adminis- 
trator issues a subsequent order to that effect; and I further order 
that the application to amend Article VIII, Section 4 (a) to read as 
follows: "All containers used by the members of the Industry for 
packing machine-applied staples shall be identified by the name of 

76054—34 4 (253) 



254 

the manufacturer or the national distributor who makes or sells the 
staples. The name of the manufacturer or the national distributor 
shall be printed or stamped on the container or on the label which 
shall be securely attached to the container. The name of the manu- 
facturer or the national distributor shall appear on the label in the 
clear, easily read type of a size not less than 12 point ; " be, and it is 
hereby denied. 

Hugh S. Johnson, 
Administrator for Industrial Recovery, 
Approval recommended : 
Barton W. Mueray, 

Acting Division Administrator, 

Washington, D.C, 

June 19, 1931^. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on an amendment to the Code of Fair Compe- 
tition for the Machine Aj^plied Staple and Stapling Maciiine 
Industry. A public hearing was duly held thereon in AVashington, 
D.C., May 16, 1934, in accordance with the provisions of the 
National Industrial Recovery Act. 

The amendment amends Article IX by adding a new sectitm to 
become Section 10, and provides that no member of the Industry 
shall sell any products of the Industry at prices other than those 
filed. 

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

I find that : 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act, including the removal of obstruc- 
tion to free fiow 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 of labor and management under adequate govern- 
mental sanction and supervision by eliminating unfair competitive 
practices, by promoting the fullest possible utilization of the present 
productive capacity of industries, by avoiding undue restriction of 
production (except as may be temporarily required), by increasing 
the consumption of industrial and agricultural products through 
increasing purchasing power by reducing and relieving unemploy- 
ment, by improving standards of labor, and by other Avise rehabili- 
tating industry. 

(b) The Code as amended complies in all respects with the 
j)ertinent 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. 

(c) The amendment and the Code as amended are not designed 
to, and will not, permit monopolies or monopolistic practices. 

(d) 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. 

(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 
amendment. 

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

Hugh S. Johnsox, 

A d^ninistrator. 
June 19, 1934. 

Approved Code No. 327 — Amendment No. 1. 
Tlegistry No. 1399-41. 

(255) 



Approved Code No, 363 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MEN'S NECKWEAR INDUSTRY 
As Approved on June 20, 1934 



ORDER 



MoDIFICA'nON OF CoDE OF FaIR COMPETITION FOR THE Men's NeCKWEAR 

Industry 

Upon application of the Code Authority for the Men's Neckwear 
Industry, the Administrative Order dated March 24, 1934, approv- 
ing the Code of Fair Competition for this Industry, is hereby 
modified so as to extend the date set forth therein for the filing by 
the Code Authority of a report with the Administrator pertaining 
to the schedule of minimum piece rate wages contained in Article III 
of the Code, to sixty (60) days from the date hereof, 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Sol a. Rosenblatt, 

Division Administrator. 

Washingon, D.C, 

June 20, 1931^. 

Approved Code No. 363 — ^Amendment No. 3. 
Registry No. 248-1-02. 

(257) 



Approved Code No. 277 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

GRAY IRON FOUNDRY INDUSTRY 

As Approved on June 21, 1934 
ORDER 



Modification of Code of Fair Competition for the Gray Iron 
Foundry 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 IC, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Gray Iron Foundry 
Industry, and hearings having been duly held thereon and the an- 
nexed 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, Administi'ator 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 perti- 
nent 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. 

Hugh S. Johnson, 
Ad/tninistrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Acting Division Administrator. 

Washington, D.C. 

June '21, 193Jf. 

(2S9) 



REPORT 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 Gray Iron foundry Industry and the hearing con- 
ducted thereon in Washington, May 31, 1934. The amendment, 
which is attached, was presented by the Code Authority. 

The Code of Fair Competition for the Gray Iron Foundry Indus- 
try provides in Article V that " Such of the provisions of this Code 
as are not required to be included therein by the Act may, with the 
approval of the President, be modified, amended, or eliminated as 
changes in circumstances or experience may indicate. It is contem- 
plated that from time to time, and with the approval of a majority 
of the Code Authority, amendments and supplementary provisions 
to this Code or additional Codes may be submitted for the approval 
of the President to prevent unfair competition in price and other 
unfair and destructive competitive practices and to effectuate the 
other purposes and policies of Title I of the Act. Pursuant to sub- 
section (b) of Section 10 of Title I of the Act, the President may 
from time to time cancel or modify any order, approval, license, rule 
or regulation issued under said Title." 

This amendment provides that Section 4 of Article III be deleted 
and the insertion of certain provisions to facilitate the collection 
from each member of the Industry of his or its equitable contribu- 
tion of the expenses of the maintenance of the Code Authority subject 
to such rules and regulations pertaining thereto issued by the 
Administration. 

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 : 
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 main- 
taining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by 
increasing the consumption of industrial and agricultural products 

(260) 



261 

through increasing purchasing power, by reducing and relieving 
nnoniplo^^mont, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as aniondod 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 thase reasons, therefore, I have approved this amendment. 
Hespectfully, 

Hugh S. Johnson, 

A dministrator. 
June 21, 1934. 



AMENDMENT TO CODE OF FAIE COMPETITION FOR 
THE GRAY IRON FOUNDRY INDUSTRY 

In accordance with Article V of the Code of Fair Competition 
for the Gray Iron Foundry Industry, it is proposed to amend said 
Code by deleting Section 4 of Article III and inserting the following 
provisions in lieu thereof: 

Section 4 (A). It being found necessary in order to support the 
administration of this code and to maintain the standards of fair 
competition established hereunder and to effectuate the policy of the 
Act, the Code Authority is authorized : 

(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 
(a) such notice and opportunity to be heard as he may deem neces- 
sary an itemized budget of its estimated expenses for the foregoing 

^purposes, and (b) an equitable basis upon which the funds necessary 
to support such budget shall be contributed by members of the 
industry ; 

(3) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable 
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. 

(B) Each member of the industry shall be liable for his or its 
equitable 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 Industry to make such 
contribution shall be a violation of this Code. Only members of 
the industry complying with the Code and contributing to the 
expenses of its administration as hereinabove provided, shall be 
entitled to participate in the selection of members of the Code Au- 
thority or to receive the benefit of any of its voluntary activities or 
to make use of any emblem or insignia of the National Recovery 
Administration. 

(C) The Code Authority shall neither incur nor pay any obliga- 
tion 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 Administrator shall have so approved. 

Approved Code No. 277 — Amendment No. 1. 
Registry No. 1111-04. 

(262) 



Approved Code No. 59 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MARKING DEVICES INDUSTRY 

As Approved on June 21, 1934 



ORDEK 



Amendment to Code of Fair Competition for the Marking 

Devices 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 Marking Devices Indus- 
try, and as contained in a Published Notice of Opportunity to File 
Objections, Administrative Order No. 59-5, dated May 23, 1934, and 
no objections having been filed as provided in said Published Notice, 
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 
President, including Executive Order 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 perti- 
nent 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 amended to include an approval of said Code in its entirety 
as amended, such approval and such amendment to take effect ten 
(10) 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 : 
Barton W. Murray, 

Acting Division Adtninistrator. 

Washington, D.C, 

June U, 1931^. 

(263) 



REPORT TO THE PRESIDENT 

The President, 

The 'White House. 

Sir : An application has been duly made pursuant to and in full 
compliance with the provisions of the National Industrial Recovery 
Act, for an Amendment to the Code of Fair Competition for the 
Marking Devices Manufacturing Industry, submitted by the Code 
Authority for the said Industry. 

The existing provision of Article VI, Section 5 of the Code for 
said Industry, is entirely inadequate in view of Executive Order 
6678 and Administrative Order X-36, and it is therefore evident 
that the proposed amendment to Article VI of said Code, the pro- 
visions of which follow closely the text of the above mentioned 
Orders, will overcome the existing inadequate provisions. 

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 : 

I find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for the 
general welfare by promoting the organization of industry for the 
purpose of cooperative action among trade groups, by inducing 
and maintaining united action of labor and management under 
adequate governmental sanction and supervision, by eliminating 
unfair competitive practices, by promoting the fullest possible utili- 
zation of the present productive capacity of the industries, by 
avoiding undue restrictions of production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) 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 amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) 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. 

(264) 



265 

(e) Those engacfed 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. 
June 21, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE MARKING DEVICES INDUSTRY 

Purpose 

Pursuant to Article X of the Code of Fair Competition for the 
Marking Devices Industry, duly approved by the President on Oc- 
tober 20, 1933, and further to effectuate the policies of Title I of 
the National Industrial Recovery Act, the following modification is 
established as a part of said Code of Fair Competition and shall 
be binding upon every member of the Marking Devices Industry. 

Modification 

Modify Article VI by deleting Section 5 and substituting in lieu 
thereof the following : 

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

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

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

c. After such budget and basis of contribution have been approved 
by the Administrator, to determine and obtain equitable contribu- 
tion 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. Each member of the Industry shall pay his or its 
equitable contribution to the expenses of the maintenance of the Code 
Authority as hereinabove provided, and subject to rules and regu- 
lations pertaining thereto issued by the Administrator. 

Only members of the Industry complying with the Code and con- 
tributing to the expenses of its administration as hereinabove pro- 
vided shall be entitled to participate in the selection of the members 
of the Code Authority or to receive the benefit of its voluntary activ- 
ities or to make use of any emblem or insignia of the National 
Recovery Administration. 

(26G) 



267 

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 estimate's except those which the Administrator shall 
have so approved. 

Approved Code No. 5& — Amendment No. 1. 
Registry No. 1399^04. 



Approved Code No. 9 — Amendment No. 14 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 

As Approved on June 22, 1934 



ORDER 



Approving Amendments op Code of Fair Competition for the 
Lumber and Timber 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 amendments 
to a Code of Fair Competition for the Lumber and Timber Products 
Industries, and hearings having been duly held thereon and the 
annexed report on said amendments, containing findings with respect 
thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States. I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to 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 amendments and the Code as con- 
stituted after being amended comply in all respects with the perti- 
nent provisions and will promote the policy and purpvoses of said 
Title of said Act, and do hereby order that said amendments be and 
they are hereby approved, ancl 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 BeGove7y. 

Approval recommended : 
Barton W. Murray, 

Acting Division Administrator. 

"Washington, D.C, 

June 22, 1931^. 

76054 — 34 5 (269) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: Under the Code of Fair Competition for the Lumber and 
Timber Products Industries as approved by you on August 19, 1933, 
the Lumber Code Authority hag submitted the Amendments which 
are included and attached. 

This is a report of the Hearing on the foregoing Amendments, 
conducted at the Mayflower Hotel in Washington, D. C, on Novem- 
ber 23, 1933, in accordance with the provisions of the National Indus- 
trial Recovery Act. 

These Amendments establish an Administrative Division for the 
manufacturers of wood crossarms, and were presented by the East 
Coast, Inland, and West Coast Crossarm Associations claiming to 
represent 66% of the production of the industry. The minimum 
wages are the same as tho,se prescribed in the Code and a forty hour 
week is established. The proponents believe that these Amendments 
will stabilize the industry and eliminate unfair trade practices, which 
are now prevalent. 

In 1929 there were approximately 500 employees in the industry; 
in 1932 the number was estimated at 150. The Amendments are 
expected to substantially increase this number. 

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

I find that : 

(a) The Amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and main- 
taining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tions 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 
]-ehabiIitatir)g industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7 and Sub- 
section (b) of Section 10 thereof. 

(270) 



271 

(c) The Code empowers the Code Authority to present the afore- 
said Amendments on behalf of the industry as a whole. 

(d) The Amenchnents and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The Amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
oi)erate to discriminate against them. 

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

For these reasons, therefore, I have approved these Amendments 
to the Code. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 
June 22, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE LUMBER AND TIMBER PRODUCTS INDUSTRY 

Article VII (d) At the end of the Paragraph headed " Poles and 
Piling " insert the following new section : 

CROSSARMS * 

Gents per Hour 

Zone No. 1 24 

Zone No. 2 3214 

Zone No. o 40 

* Zone No, 1 includes the States of Florida, Georgia, South Caro- 
lina, North Carolina, Virginia, Alabama, Tennessee, Mississippi, 
Louisiana, Arkansas, New Mexico, Arizona, and Texas (13 States). 

Zone No. 2 includes the States of Maine, New Hampshire, Ver- 
mont, Massachusetts, Rhode Island, Connecticut, New York, New 
Jersey, Delaware, District of Columbia, Maryland, West Virginia, 
Pennsylvania, Ohio, Kentucky, Indiana, Michigan, Illinois, Wiscon- 
sin, Minnesota, Iowa, Missouri, Kansas, Oklahoma, Nebraska, South 
Dakota, and North Dakota (26 States and District of Columbia). 

Zone No. 3 includes the States of Oregon, Washington, California, 
Nevada, Idaho, Utah, Colorado, Wyoming and Montana (9 States). 

In Schedule A at the end of Section 39 add the following new 
section : 

40. CROSSAEM DIVISION 

Division {Article II {c)) : The Crossarm Division consists of all 
producers and manufacturers of wooden Crossarms, as hereinafter 
defined. 

Products {Article II {a) ) : Wood Crossarms manufactured, from 
sawn lumber whether or not bored for insulator pins, bolts and 
brackets, excluding, however, the installation of pins and brackets. 
The preservative treatment of these products is excepted. 

Administrative Agency {Article III) : (a) The Crossarm Division 
is divided for administrative purposes into the following Sub- 
divisions : 

1. East Coast Crossarm Subdivision 

2. Inland Crossarm Subdivision 

3. West Coast Crossarm Subdivision 

4. Southern Pine Crossarm Subdivision 

(b) Administrative Agencies shall be elected for each Subdivision 
in accordance with the provisions hereinafter set forth for the 
respective Subdivisions. 

(c) 1. A Crossarm Coordinating Committee shall be elected by 
the respective Subdivision Agencies as follows: Two (2) members 

(272) 



J 



273 

of the Coordinating Committee shall he elected by the Administra- 
tive Agency of the West Coast Crossnrm Subdivision; one member 
from each sliall be elected by the Administrative Agencies of the 
East Coast Crossarm Subdivision, the Inland Crossarm Subdivision 
and the Southern Pine Crossarm Subdivision. 

In addition, the non-association members of the respective sub- 
division agencies may, if they so desire, jointly elect one member of 
the Coordinating Committee to represent the non-members of the 
resjiective associations. Immediately after the election of the re- 
spective subdivision administrative agencies, the Authority shall cir- 
cularize the non-association members of such administrative agencies 
to ascertain whether they desire to elect a representative to the Coor- 
dinating Committee; and shall render its assistance in conducting 
the election of such representative. 

2. Subject to the approval of the Authority and to the limita- 
tions contained in Article III of the Code, the Coordinating Com- 
mittee is authorized to make such rules and regulations as may be 
necessar}^ to administer the Code in this Division and may designate 
such agents and delegate such authority to them as may be necessary 
for this purpose, but it shall reserve final responsibility for the ad- 
ministration of the provisions of the Code in this Division. 

The Committee may delegate any of its authority to its repre- 
sentative, elected by its membership, on the membership of the 
Authorit}', and may empower him to act for the Division conclu- 
sively in respect to all matters coming before the Authority. All 
matters of interest to the Division or any Subdivision requiring 
action by the Authority shall first be presented to the Crossarm 
Coordinating Committee. 

3. Under the limitations of Article III of the Code each Subdi- 
vision shall be independent and self-governing in respect to all 
conditions and problems relating to the said Subdivision exclusively. 
Proposals in respect of matters affecting more than one Subdivision 
may be initiated by any Subdivision and shall be submitted to the 
Crossarm Coordinating Committee. 

4. Members of the Coordinating Committee and of the respective 
Subdivision Administrative Agencies shall be elected for a term of 
one year or until their successors are elected. 

(d) In order to insure the proper administration of the Code in 
the respective Subdivisions of this Division until such time as any 
such Subdivision Administrative Agency established conclusively to 
the Lumber Code Authority that it is able to administer all pro- 
visions of the Code in its Subdivision, the Lumber Code Authority 
may designate existing Divisional Agencies in each region and/or 
locality to supervise the Administrative Agencies of the respective 
Subdivisions of this Division as to the administration of those pro- 
visions of the Code which relate to maximum hours of labor, mini- 
mum rates of pay, the payment of code fees, the submission of code 
reports, and any questions of correlation and adjustment with other 
industries included in such Division. 

(e) Within thirty days after the effective date hereof the West 
Coast Crossarm Association, the Inland Crossarm Association, the 



274 

East Coast Crossarm Association and the Southern Pine Associa- 
tion shall conduct elections for the purpose of selecting the Adminis- 
trative Agencies of their respective Subdivisions of the Crossarm 
Division, 

Due notice of the time and place of such elections shall be sent to 
every known member of the Division in writing or by such other 
methods as are reasonably calculated to notify all interested parties 
of such election. Said election shall be conducted in a fair and 
equitable manner. 

Each member of the respective Subdivisions shall be entitled to 
one vote in person, by letter or by proxy. 

EAST COAST CROSSARM SUBDIVISION 

Subdivision {Article II (<?)): East Coast Crossarm Subdivision 
consists of ail manufacturers and producers of wooden cross-arms, 
excepting manufacturers of Southern Pine Crossarms, located in 
the States of Maine, New Hampshire, Vermont, Massachusetts, 
Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, 
Delaware, Maryland, District of Columbia, West Virginia, Virginia, 
North Carolina, South Carolina, Georgia, Florida, Alabama, Mis- 
sissippi, Louisiana and Texas, 

Products {Article II {a) ) : Wood Crossarms, other than Southern 
Pine, manufactured from sawn lumber wdiether or not bored for 
insulator pins, bolts and brackets, excluding however, the installation 
of pins and brackets. The preservative treatment of these products 
is excepted. 

Administrative Agency {Article III) : The Administrative Agency 
of this Subdivision is designated as the agent of the Authority and 
of the Crossarm Coordinating Committee for the administration of 
the Code in this Subdivision. Said Administrative Agency shall 
consist of three members, one of whom shall not be a member of the 
East Coast Crossarm Association, if there be any such. Said Admin- 
istrative Agency is authorized to make such rules and regulations as 
are necessary to administer the Code in this Subdivision and shall 
designate and authorize such additional agency as shall be required. 
The East Coast Crossarm Association is designated by the Authority 
to conduct the election of the Agency in this Subdivision. 

INLAND CROSSARM SUBDIVISION 

Subdivision {Article II (c)): Inland Crossarm Subdivision 
consists of all manufacturers and producers of wooden crossarms, 
excepting manufacturers of Southern Pine Crossarms, located in the 
States of Ohio, Indiana, Illinois, Kentucky, Tennessee, Michigan, 
Wisconsin, Minnesota, Iowa, Missouri, Arkansas, North Dakota, 
South Dakota, Nebhaska, Kansas and Oklahoma. 

Products {Article II {a) ) : Wood crossarms, other than Southern 
Pine, manufactured from sawn lumber whether or not bored for 
insulator pins, bolts and brackets, excluding, however, the installa- 
tion of pins and brackets. The preservative treatment of these 
products is excepted. 



275 

Administrafive Agevcy {Article III) : The Administrative 
Agency of this Subdivision is desijjnated as the a<2:ent of the Author- 
ity and of the Cro&sann (^oordinatiiif^ Comniittoo for the administra- 
tion of the Code in this Subdivision. Said Administrative Aj^ency 
shall consist of three membei-s, one of whom shall not be a mem- 
ber of the Inland Crossarm Association, if there be any such. Said 
Administrative Agency is authorized to make such rules and regu- 
lations as are necessary to administer the Code in this Subdivision 
and shall designate and authorize such additional agency as shall 
be required. The Inland Crossarm Association is designated by the 
Authority to conduct the election of the Air^n^v in this Subdivision. 

WEST COAST CROSSARM SUBDIVISION 

Suhdivhion {Article II {c) ) : West Coast Crossarm Subdivision 
consists of all manufacturers and producers of Avooden cronsanns, 
excepting manufacturers of Southern Pine Crossarms, located in 
the States of Washington, Oregon, California, Idaho, Montana, 
Wj'oming, Nevada, Utah, Colorado. Arizona and New Mexico. 

Products {Article II {a)) : Wood Crossarms, other than Southern 
Pine, manufactured from sawn lumber, whether or not bored for 
insulator pins, bolts and brackets, excluding, however, the installa- 
tion of pins and brackets. The preservative treatment of these prod- 
ucts is excepted. 

Administrative Agency {Article III) : The Administrative Agency 
of this Subdivision is designated as the agent of the Authority and 
of the Crossarm Coordinating Committee for the administration 
of the Code in this Subdivision. Said Administrative Agency shall 
consist of three members, one of whom shall not be a member of the 
West Coast Crossarm Association, if there be any such. Said Ad- 
ministrative Agency is authorized to make such rules and regula- 
tions as are necessary to administer the Code in this Subdivision 
and shall designate and authorize such additional agencies as shall 
be required. The West Coast Crossarm Association is designated 
by the Authority to conduct the election of the Agency in this 
Subdivision. 

SOUTHERN PINE CROSSARM SUBDIVISION 

Subdivision {Article II {c) ) : Southern Pine Crossarm Subdi- 
vision consists of all manufacturers or producers of Southern Pine 
Crossarms. 

Products {Article II {a) ) : Southern Pine Crossarms, manufac- 
tured from sawn lumber, whether or not bored for insulator pins, 
bolts and brackets, excluding, however, the installation of pins and 
brackets. The preservative treatment of these products is excepted. 

Administrative Agency {Article III) : The Administrative 
Agency of this Subdivision is designated as the agent of the 
Authority'' and of the Crossarm Coordinating Committee for the 
administration of the Code in this Subdivision. Said Administrative 



276 

Agency shall consist of three members, one of whom shall not be a 
member of the Southern Pine Association, if there be any such. 
Said Administrative Agency is authorized to make such rules and 
regulations as are necessary to administer the Code in this Subdi- 
vision and shall designate and authorize such additional agencies as 
shall be required. The Southern Pine Association is designated by 
the Authority to conduct the election of the Agency in this 
Subdivision. 

Approved Code No. 9 — ^Amendment No. 14. 
Registry No. 313-1-06. 



Approved Code No. 93 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WASHING AND IRONING MACHINE 
MANUFACTURING INDUSTRY 

As Approved on June 22, 1934 



ORDER 



Modification of Code of Fair Competition for the Washing and 
Ironing Machine 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 Washing and Ironing 
Machine Manufacturing Industry, and hearings having been duly 
held thereon, and the annexed report on said amendment, containing 
findings with respect thereto having been made and directed to the 

NOW, THEREFORE, upon behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
l^ursuant to authority vested in me by Executive Orders of the Pres- 
ident, 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 constitutes 
after being amended comply in all respects with the pertinent pro- 
visions 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, 3uch 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 Adminis- 
trator issues a subsequent order to that effect. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended :' 
Barton W. Murray, 

Acting Division Administrator. 

Washington, D.C, 

June 22, 1934. 

(277) 



REPOET TO THE PRESIDENT 

The President, 

The 'White House. 

Sir: Under the Code of Fair Competition for the Washing and 
Ironing Machine Manufacturing Industry, as approved on Novem- 
ber 4, 1933, the Code Authoritj^ has submitted a proposed amend- 
ment to Article VI, Subsection B, and on which Public Hearing was 
held in Room 2066, Department of Commerce Building, Washington, 
D. C, June 4, 1934, in accordance with the provisions of the Act. 

Insofar as this amendment incorporates additions to the text, the 
additions are the result of either original oversight or of practical 
experience under the Code which has demonstrated their need. 

FINDINGS 

The Deputy Administrator in his report to me on said amendment 
to said Code having found as herein set forth and on the basis of 
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 wel- 
fare by promoting the organization of industry for the purpose of 
cooperative action among trade groups, by inducing and maintaining 
united action of labor and management under adequate governmental 
sanction and supervision, by eliminating unfair competitive practices, 
by promoting the fullest possible utilization of the present productive 
capacity of the Industries, by avoiding undue restrictions of pro- 
duction (except as may be temporarily required), by increasing the 
consumption of industrial and agricultural products through in- 
creasing purchasing power, by reducing and relieving unemploy- 
ment, by improving standards of labor, and by otherwise rehabili- 
tating industry. 

(b) The Code as amended complies in all respects with the 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 amendment and the Code as amended are not designed to 
and will not permit monopolies or monopolistic practices. 

(d) 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. 

(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 
amendment. 

(278) 



279 

For these reasons, therefore, I have approved the amendment to 
take effect fifteen (15) days from the date thereof, unless good cause 
to the contrary is shown to the Administrator before that time and 
the Administrator issues a subsequent order to that effect. 
Kespectfully, 

Hugh S. Johnson, 

Administrator, 
June 22, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOE 
THE WASHING AND IRONING MACHINE MANUFAC- 
TURING INDUSTRY 

Amend Article YI, Subsection B, by deleting the present provision 
of said Article YI, Subsection B and "insert the following: 

Article YI — Subsection B 

1. It being found necessary in order to support the administration 
of this code and to maintain the standards of fair competition estab- 
lished hereunder and to eliectuate 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 necessary 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the funds necessary 
to support such budget shall be contributed by members of the 
industry ; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable con- 
tribution as above set forth by all members of the industry, and to 
that end, if necessary, to institute legal proceedings therefore 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, shall be 
entitled to participate in the selection of members of the Code Au- 
thority or to receive the benefits of any 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; and no subsequent bud- 
get shall contain any deficiency item for expenditures in excess of 
prior budget estimates except those which the Administrator shall 
have so approved. 

Approvod Code No. 03 — Amendment No. 3. 
Registry No. 1399/1/11. 

(2b0) 



Approved Code No. 223 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CONSTRUCTION MACHINERY DISTRIBUTING 

TRADE 

As Approved on June 23, 1934 



ORDER 



Approving Amendments to the Code of Fair Competition for the 
Construction Machinery Distributing Trade 

An application having been dulj made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, apj)roved June 16, 1933, for approval of amendments 
to a Code of Fair Competition for the Construction Machinery Dis- 
tributing Trade, and hearings having been duly held thereon and 
the annexed report on said amendments, containing findings with 
respect thereto, having been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to 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 amendments and the Code as con- 
stituted after being amended comply in all respects with the pertinent 
provisions and will promote the policy and purposes of said Title 
of said Act, and do hereby order that said amendments be and they 
are hereby approved, and that the previous approval of said Code is 
hereby modified to include an approval of said Code in its entirety 
as amended, such approval and such amendments to take effect fifteen 
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 : 
Barton W. Murray, 

Acting Division Administrator. 

Washington, D.C, 

Jnue 23, 1934. 

(281) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the amendments to the Code of Fair Com- 
petition for the Construction Machinery Distributing Trade, as re- 
vised after a Public Hearing conducted in Washington on May 11, 
1934, in accordance with Article X, Section 1 of said Code as ap- 
proved on January 23, 1934. 

The amendments which clarify the definition of the Trade and 
pertain to procedure of the Code Authority will improve and 
simplify the operation of this Code. 

FINDINGS 

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

I find that : 

(a) The amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act, including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for 
the general welfare by promoting the organization of industry for 
the purpose of cooperative action among trade groups, by inducing 
and maintaining united action of labor and management under 
adequate governmental sanction and supervision, by eliminating 
unfair competitive practices, by promoting the fullest possible utili- 
zation of the present productive capacity of industries, by avoiding 
undue restriction of production (except as may be temporarily re- 
quired), by increasing the consumption of industrial and 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 employees, 
and is not classified by me as a major Trade. 

(c) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act. including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(d) The Code Authority, duly authorized to represent the Trade, 
has applied for and assents to these amendments. 

(e) The amendments and the Code as amended are not designed to 
and will not permit monopolies or monopolistic practices. 

(f) The amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(282) 



283 



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

For these reasons, these amendments have been approved by me, 
subject to a fifteen day stay and opportunity to be heard by all 
affected persons. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 
June 23, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOE 
THE CONSTRUCTION MACHINERY DISTRIBUTING 
TRADE 

PURPOSE 

Pursuant to Article X, Section 2, of the Code of Fair Competition 
for the Construction Machinery Distributing Trade, duly approved 
by the President on January 23, 1934, and further to effectuate the 
policies of Title I of the National Industrial Recovery Act, the fol- 
lowing amendments are established as a part of said Code of Fair 
Competition and shall be binding upon every member of the Con- 
struction Machinery Distributing Trade. 

Articiie II— Definitions 

The first paragraph is hereby amended to read as follows : 
" The term ' Construction Machinery ' or ' Machinery ', as used 
herein, shall include any new and/or used machinery, equipment, or 
attachments used in the construction or maintenance of any project, 
but not becoming a permanent part of the structure or of its 
operation." 

The second paragraph is hereby amended to read as follows: 
" The term ' Construction Machinery Distributor ', or ' Distribu- 
tor ', as used herein, shall include any person other than a manu- 
facturer (except manufacturers who assent for any part of the items 
included in this Trade), but without limitation, who warehouses, 
sells, rents, or distributes Construction Machinery as hereinabove 
defined." 

Article VI — Administration 

Section 3: Sub-section (b) is hereby deleted. 

Section 2: There is hereby added at the end of Section 2, a new 
section numbered Sec. 2A, to read as follows : 

"Members of the Trade who warehouse, sell or distribute Used 
Machineiy may, if they desire, elect one additional member of the 
Code Authority in any fair manner approved by the Administrator." 

There is hereby added at the end of Article VI, a new Section, to 
be numbered 9, to read as follows : 

" Sec. 9, Assessments. — A. It being found necessary in order to 
support the administration of this Code and to maintain the stand- 
ards of fair competition established hereunder and to effectuate the 
policy of the Act, the Code Authority is authorized, subject to the 
approval of the Administrator: 

"(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes and to meet such obligations out of 

(284) 



285 

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 Athninistrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary 
(1) an itemized budi>:et of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the funds necessary 
to support such budget sliall be contributed 1)}' members of the Trade; 

'"(c) After such budget and basis of contribution have been ap- 
j)roved by the Administrator, to determine and obtain equitable con- 
tribution 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. 

'' B. Each member of the Trade shall pay to the extent of the 
volume of his or its business under this Code, his or its equitable con- 
tribution to the expenses of the nuiintenance of the Code Autliority, 
determined as hereinabove provided, and subject to rules and regula- 
tions pertaining thereto, issued by the Administrator. Only mem- 
bers of the Trade complying with the Code and contributing to the 
expenses of its administration as hereinabove j^rovided, shall 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 
nudve use of any emblem or insignia of the National Recovery Ad- 
ministration. 

" C. The Code Authority shall neither incur nor pay any obligation 
in excess of the amount tiiereof 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 
])rior budget estimates except those which the Administrator shall 
liave so approved." 

Article VII — Trade Practices 

Section 1 is hereby amended to read as follows : 

" Sec. 1. Inducing or attempting to induce a breach of commercial 
contract to which a member of the Trade is a party." 

Section 2 is hereby deleted and a new Section 2 is hereby added 
to read as follows: 

" Sec. 2. Renting helow list price. — No member of the Trade shall 
rent or offer to rent any machinery, attachments, or equipment at a 
price lower or on terms more favorable than those stated in his pub- 
lished price list, or price lists, with discount sheets, if fin}^, filed in 
accordance with Article IX." 

Section 3 is hereby amended to read as follows : 

" Sec. 3. Paying or allowing secret rebates, refunds, unearned dis- 
counts or credits, either in the form of money or otherwise, or secretly 
extending to certain customers special services or privileges not ex- 
tended to all customers of the same class on like terms or conditions." 

Section 4 is hereb}^ amended to read as follows : 

" Sec. 4. Paying or agreeing to pay, directly or indirectly, a 
commission or consideration of any kind, except to persons regularly 
employed in the distributor's organization or to regularly estal)lished 
subdealers; provided, however, that nothing in this Section 4 shall 
be construed to prevent the allowance of discounts to customers as 

760.j4— 34 



28G 

prescribed in the distributor's published price lists and discount 
sheet." 

The proviso in Section 6 is hereby amended to read as follows : 

" Provided^ hoioever^ That damaged, obsolete, noncurrent, and 
distress construction machinery, attachments or equipment may be 
sold at such prices as are necessary to move the goods into buyers' 
hands, but as to nevs^ machinery only after filing with the Code 
Authority at least ten (10) days in advance of such sale a list show- 
ing the quantity and description of such machinery." 

Section 12 is herebj^ amended to read as follows : 

" Sec. 12. Quoting delivered prices on new machinery or invoic- 
ing purchaser without adding, to the f.o.b. factory price, transpor- 
tation and other charges, and failing to state in quotation, where 
freight is to be prepaid, that such prepaid freight will be charged 
as a separate item and billed net cash." 

The following new sections are hereby added: 

" Sec. 18. Renting used machinery, equipment, or attachments 
with an option to purchase, with full application of the rentals upon 
the purchase price, except upon the following conditions: 

"(a) Sale value shall be stated in the contract. 

"(b) Said option shall not be for a longer period than thirty (30) 
days from date of delivery. 

"(c) The terms of payment of the purchase price, in the event of 
exercise of the option, shall conform to Section (2) of this Article 
VII. 

" Sec. 19. In the event of a sale of used machinery, equipment, or 
attachments during or at the expiration of a lease period or any ex- 
tension thereof, other than a sale upon option as hereinbefore pro- 
vided, allowing as partial payment of the fair purchase price, more 
than certain percentages of the rentals paid or accrued, such per- 
centages to be determined by the Code Authority for regional areas 
with the approval of the Administrator. 

" Sec. 20. Having any rental arrangement except as evidenced by 
signed agreement or lease. 

" Sec. 21. Renting any machinery upon any agreement unless it 
shall provide in all cases that the rental charges shall start from the 
date of delivery from, and continue to the date of return to, lessor's 
warehouse, (except that in the case of shipments by public carrier, 
the rental period shall be from date of bill-of-lading to date of bill- 
of -lading), actual transportation charges to be paid by lessee in all 
cases. 

" Sec. 22. Selling any machinery under any promise or agreement 
to repurchase the same. 

" Sec. 23. Renting machinery for an indefinite period of time such 
as the duration of a job, for a lump sum or maximum rental which 
is less than the price list, or price lists and discount slieets, as filed in 
accordance with Article IX." 

Article IX — Publicity of Prices 

Section 1 is hereby amended to I'oad as follows : 

" Sec. 1. Each meniber of tlie Trade sliall within thirty (30) days 
after the effective date of this Code file with the Code Authority 
copies of his price lists, with discount sheets, if any, showing prices 



287 

for all new machiner}', attachments, and equipment which said mem- 
ber sells. Each member of the Trade shall within thirty (30) days 
after the effective date of this amendment file with the Code xViithor- 
ity a complete schedule of his rental prices based upon units of 
time. Each member of the Trade shall at all times file and maintain 
with the Code Authority price lists, with discouiit sheets, if any, 
showing prices of all new machiner}^, attachments, and equipment 
and all rental schedules, and shall not make any chan<j^e in said 
prices except by filing notice of such price changes as hereinafter 
provided." 

There is hereby added a new Section to be numbered 4 and to read 
as follows : 

" Sec. 4. Lists and discount sheets filed with the Code Authority 
shall be available for the inspection of all members of the Trade 
and all other interested parties, and copies thereof shall be furnished 
by the Code Authority to all who agree to pay their pro-rata 
share of the cost of the actual additional expense of such enlarged 
circulation." 

Section 4 is hereby amended b}^ renumbering it so that it becomes 
Section 5. 

EFFECTIVE DATE 

The foregoing amendments shall become effective on the date of 
approval hereof. 

Approved Code No. 223 — Amendment No. 1. 
Registry No. 1399^17. 



Approved Code No. 287 — Amendment No. 5 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

GRAPHIC ARTS INDUSTRIES 

As Approved on June 23, 1934 



ORDER 



Approving Modificai-ions of Code of Fair Competition for the 
Graphic Arts Industries 

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 modifications 
to a Code of Fair Competition for the Graphic Arts Industries, and 
hearings having been duly held thereon and the annexed rejDort on 
said modifications, containing findings with respect thereto, having 
been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate, by reference, said 
annexed report and do find that said modifications and the Code as 
constituted after being modified comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said modifications bo 
and are hereby approved, and that the previous approval of said Code 
is hereby modified to include an approval of said Code in its entirety 
as modified. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
George Buckley, 

Division Administrator. 

Washington, D.C, 

Jvm,e 23, 193Jf. 

(289) 



REPORT TO THE PRESIDENT 

The President, 

The 'White House, 

Sir : This is a report on the proposed modifications of the Code of 
Fair Competition for the Graphic Arts Industries as approved by 
you on February 17, 19;34. A Public Hearing was held on these 
proposed modifications in the City of Washington on April 3, 1934 
and full opportunity was given to ail interested parties to appear. 

The proposed modifications consist of wage and hour provisions, 
provisions regarding apprentices and complement of men, and fair 
trade practice provisions for the Steel and Copper Plate Engraving 
and Printing Industr3^ The fair trade practice provisions are in 
the form of an Appendix to the Code. 

The Deputy Administrator in his final report to me on said modifi- 
cations 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 modifications to said Code and the Code as modified are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and main- 
taining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of 
the present productive capacity of industries, by avoiding undue 
restriction of production (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 modified complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The modifications and the Code as modified are not designed 
to a)id will not permit monopolies or monopolistic practices. 

(d) The modifications and the Code as modified are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

I believe the modifications to be fair to labor, to the consumer, and 
to the industry, and for these reasons, therefore, I approve this 
amendment. 

Respectfully, Hugh S. Johnson, 

June 23, 1934. Administrator. 

(290) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE GRAPHIC ARTS INDUSTRIES 

Section 23 (Continued) 

mechanical employees (continued) 

B. Engaged in the processes of Steel and Copper Plate Engraving and 

Printing. 

The provisions of this Sub-Section 23-B shall govern all estab- 
lishments engaged in any of the processes or partial processes of steel 
and copper plate engraving and printing under this Code, and shall 
be applicable to all the mechanical employees of such establishments 
engaged in carrying on any of the operations of such processes. 

The provisions of this Sub-Section 23-B shall not be applicable 
to the employees of any establishment within the Securities and 
Bank Note Engraving and Printing Industry, engaged in any of the 
processes or partial processes of that type of engraving known as 
bank note steel engraving. 

(a) Mechanical employees — minimum wages. — Establishments 
covered by this Sub-Section 23-B shall not pay any mechanical em- 
ployee less than at the rate of 40 cents per hour, unless on July 15, 
1929 the hourly rate for the same class of work was less than 40 
cents per hour, in which latter case they shall be paid not less than 
such hourly rate on July 15, 1929, in the same establishment (or in 
the same locality in the case of a new establishment) and in no event 
less than at the rate of 30 cents per hour. 

(b) Skilled mechanical employees — 77iinimum wages. — 
Paragraph 1. Each establishment, with the exception of those — 

1. Which are operating under w^age agreements arrived at by 
collective bargaining; and 

2. Which are paying not less than the wage rates which they 
were paying on July 15, 1929, 

shall make increases in its average hourly compensation for all 
classes of skilled labor, within thirty (30) da3^s after this Sub-Section 
23-B becomes effective, on the following basis : 

Each plant shall increase the hourly or piecework rates to a point 
where (including increases made since July 1, 1933) they are ten 
per cent (10%) higher than the rates in effect on July 1, 1933, with 
this limitation that they need not increase rates above those paid on 
July 15, 1929 in the same plant or in plants producing similar work 
in similar areas as determined by the Code Authority, with the 
approval of the Administrator, coming within the above clauses 
(1) or (2). 

Paragraph 2, Within thirty (30) days after this Sub-Section 
23-B becomes effective, any rate increases under Paragraph 1 must 
be further augmented if necessary to bring the average hourly or 
piecework compensation paid in each establishment up to ninety 
per cent (90%) of the rates prevailing on July 1, 1933 in the same 
locality or competitive area for base classes of skilled labor employed 
in this industry. 

(291) 



292 

Prevailing hourly or piecework rates shall be the average of the 
rates paid to the emi^loyees constituting that fifty per cent (50%) 
of each class of skilled employees in that locality or competitive area 
which was receiving the higher wage rates on July 1, 1933. 

For example, if in a locality, a total of thirty press operators were 
em23loyed, ten of w^hom were receiving 82 cents per hour and twenty 
of Avhom were receiving 67 cents per hour, the prevailing rate would 
be the weighted average of 82 cents for ten men and of 67 cents for 
five men (making together fifty per cent (50%) of the total number) 
or 77 cents, and ninety per cent (90%) thereof would be 69.3 cents. 

Note. — For the purpose of Paragraphs 1 and 2 " average " in case 
varying rates are paid for the same classification of labor, means 
averages ascertained by dividing the total of hourly compensation 
by the total number of employees whose wage rates are being 
averaged. 

Paragraph 3. In appl3dng the foregoing paragraphs, differentials 
in wage rates for varjdng tasks within the same class shall be main- 
tained as in effect December 1, 1933, in the individual establishments. 

Paragraph 4. In no instance shall the foregoing be applied in a 
manner to reduce the present rate paid to any employee, or to estab- 
lish minimum wage rates in establishments where collective bargain- 
ing is not practiced higher than the minimum for the same class of 
emploj-ees in establishments in that locality where wage rates were 
arrived at through collective bargaining. 

Paragraph 5. It should be specifically understood that the fore- 
going provisions are intended to establish only minimum and not 
maximum wage requirements. 

(c) General wage provisions. — In connection with the foregoing 
the following rules shall apply: 

1. An employee performing duties coming within more than one 
classification, shall be compensated on the basis of the rates applying 
to such several classifications for the time employed. 

2. The foregoing requirements as to mechanical wages do not 
apply to apprentices, who are referred to in (e) of this section. 

(d) Hours of labor. — 1. Standard Working Hours. — Standard 
working hours shall be forty (40) hours per week for all mechanical 
employees, including proprietors, supervisors, foremen and/or others 
for the time actually engaged in mechanical work. The work week 
in the case of each individual employee shall be divided into not 
more than six shifts, no one of which will be more than eight (8) 
hours unless overtime be paid. When necessary overtime shall be 
permitted; provided (1) that mechanical employees shall receive 
not less than the overtime rate (one and one-half times the hourly or 
piece rate wage) for all work in excess of eight (8) hours within any 
twenty-four (24) hour period, or forty (40) hours in any one week. 
Double time shall be paid for Sundays and holidays. (2) That 
no more than five hundred and twenty (520) hours shall be worked 
by any mechanical employee in any thirteen (13) weeks' period. 

It is not intended that "any of the foregoing provisions shall limit 
the number of days per week or shifts j^er day an establishment may 
operate. 

2. MaximMm Hour Exceptions. — The maximum hours fixed by this 
Sub-Section 23-B shall not apply to employees on emergency main- 
tenance or emergency repair work, nor to employees in cases where 



293 

the restriction of hours of higlily skilled artistic or mechanical work- 
prs on continuous processes would unavoidabl_y reduce production ; 
but in the case of such workers at least time and one-half shall be 
paid for the hours worked in excess of eight hours in any one da}', 
or forty (40) hours in any one week. 

A tolerance of ten per cent (10%) without overtime, over the 
maximum hours herein prescribed, shall be allowed in the cases of 
wash-up crews, shippinp; crews, matei-ial handlers, elevator operators 
and other mechanical employees whose duties have no direct con- 
nection with graphic arts processes, and a tolerance of twenty per 
cent (20%) without overtime shall be allowed in the cases of outside 
deliver}' men, jjorters, engineers, firemen, janitors and watchmen. 
The maximum of six shifts per week shall not apply to engineers, 
liremen, janitors or watchmen, nor the provision that double time be 
paid for holidays. 

3. It should be specifically understood that the foregoing provi- 
sions are subject to the provisions of the Executive Order of Feb- 
ruary 17, 1934, api^roving this Code. 

(e) Apprentices. — 

1. The National Code Authority for the Steel and Copper Plate 
Engraving and Printing Industry, promptly after its organization, 
shall appoint a committee composed of an equal number of repre- 
sentatives of employers and employees, the representatives of the 
employees to be nominated by the Labor Advisory Board, to study 
carefully the apprenticeship situation and to make recommendations 
thereon within six months fi-om the effective date of this Sub-Section 
23-B to such Code Authority. In making its study the committee 
shall not limit itself to existing data and information but shall 
secure through the National Code Authority from establishments 
within the industry such additional facts as it may deem neces- 
sary. Its recommendation shall include apprenticeship ratios and 
methods of applying them equitably for the industry. It shall also 
establish minimum rates of pay for apprentices subject to approval 
by the Administrator. Upon receipt of the recommendations of the 
committee, the National Code Authority shall adopt rules and regu- 
lations to govern all apprentices within the industry, such rules and 
regulations being subject to approval by the Administrator. 

2. Pending the approval of the rules and regulations referred to 
in the above paragraph, no new apprentices shall be indentured at 
Icvss than the minimum wage of skilled mechanical employees. 

The maximum terms of apprenticeships shall be: for engravers, 
five years; plate j^rinters and die stampers, four years. 

These apprenticeship rules shall not prevent the continuation of 
the status of persons already at work under apprenticeship arrange- 
ments made prior to June 1, 1934. 

Upon completion of the terms of apprenticeship, journeymen's 
minimum rates of pay shall apply. 

(f) Compleinent of Men. — A commission of three disinterested 
engineers, selected by the American Society of Mechanical Engi- 
neers, may be employed by the National Code Authority to make a 
comprehensive study, and to recommend rules covering complement 
of men required on steel and copper plate engraving and printing 
mechanical equipment, for addition to this Code by amendment as 
elsewhere herein authorized. 



Appendix of Industry No. C— 2 

steel and copper platr, engraving and printing 

maintenance of fair competition 

(c) No establishment shall advertise, offer for sale, or sell type printing 
treated with substances that fuse and raise under heat treatment, simulating 
engraving, as engraving of any kind. 

(d) No establishment shall advertise, offer for sale or sell as hand engraved, 
any plate or die produced by an engraving machine. 

Approved Code No. 287 — Amendment No. 5. 
Registry No. 599-33. 

(294) 



Approved Code No. 359 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PREFORMED PLASTIC PRODUCTS INDUSTRY 

As Approved on June 23, 1934 



ORDER 



Appuovtng Modification of Code of Fair Competition for the 
Preformed Plastic Products Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a modifica- 
tion to a Code of Fair Competition for the Preformed Plastic Prod- 
ucts Industry, an opportunity to be heard having been duly afforded 
all interested parties and the annexed report on said modification, 
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 modification and the Code as 
constituted after being modified comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said modification 
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 modified. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Acting Division Ad7ni7iistrator. 

Washington, D.C, 

June ^3, 19S4. 

(295) 



REPORT TO THE PRESIDENT 



The President, 

The White House. 
Sir: Under the Code of Fair Competition for the Preformed 
Plastic Products Industiy, as approved on March 23, 1934, the Code 
Authority has submitted a modification to Article VI, Section 1, 
designed to empower the Code Authority to collect assessments from 
all members of the Industry to provide for the expenses of adminis- 
tering the Code. Under this modification, payment of such assess- 
ments will not be mandatory until the Code Authority has sub- 
mitted and has had approved by the Administrator, a budget and 
plan of assessment. A provision of the modification forbids the 
Code Authority from making expenditures in excess of their ap- 
proved budget. These provisions replace the former provisions 
for supporting the Code Authority through voluntary payments. 

FINDINGS 

The Deputy Administrator in his final report to me on said modi- 
fication 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 modification of said Code and the Code as modified are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fullest utilization of the present 
productive capacity of industries, by avoiding undue restriction of 
production (excpt as may be temporarily required), by increasing 
the consumption of industrial and agricultural products through 
increasing purchasing power, by reducing and relieving unemploy- 
ment, by improving standards of labor, and by otherwise rehabili- 
tating industry. 

(b) The Code as modified complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation sub-section (a) of Section 3, sub-section (a) of Section 7 and 
sub-section (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said modification on behalf of the industry as a whole. 

(d) The modification and the Code as modified are not designed 
to and will not permit monopolies or monopolistic practices. 

(296) 



297 

(e) The modification and the Code as modified are not desij^ied 
to and will not eliminate or oi)press small enterprises and will not 
operate to discriminate against them. 

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

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

Hugh S. Johnson, 

Administ7'ator. 
June 23, 1934. 



AMENDMENTS TO CODE OF FAIR COMPETITION FOR 
THE PREFORMED PLASTIC PRODUCTS INDUSTRY 

Modification 

Modify Article VI, Section 1, by deleting paragraph (e) and sub- 
stituting in lieu thereof the following: 

Article VI — Administration 

Section 1, paragraph (e) : 

" 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 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 purpose of the Code ; 

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

" c. After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable 
contributions 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) Each member of the industry shall be liable for his or its 
equitable 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 Adminis- 
trator. Failure on the part of a member of the industry to make 
such contribution shall be a violation of this Code. Only members 
of the industi-y complying with the Code and contributing to the 
expenses of its administration as hereinabove provided, shall be 
entitled to participate in the selection of members of the Code Au- 
thority or to receive the benefits of any of its voluntary activities or 
to make use of any emblem or insignia of the National Recovery 
Administration. 

(298) 



299 

"(3) The Code Authority shall neither incur nor pay any obli- 
gation 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 Administrator shall have so approved." 

Approved Code No. 359 — Amendment No. 1. 
Registry No. 1637-13. 



Approved Code No. 175 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MEDIUM AND LOW PRICED JEWELRY 
MANUFACTURING INDUSTRY 

As Approved on June 26, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the 
Medium and Low Priced Jewelry Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title 1 of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Medium and Low Priced 
Jewelry Manufacturing Industry, and opportunity to be heard hav- 
ing been afforded ail interested parties, and any objections filed 
having been duly considered, and the annexed report on said amend- 
ment, 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 ail respects with tlie per- 
tinent 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. 

Hugh S. Johnson, 
Administrator for Iiulustrlal Recovery. 

Approval recommended : 
Geo. L. Berry, 

Div ision A dm inistrator. 

Washington, D.C, 

June 27, 1931^. ^ 

76054—34 7 (301) '' 



REPORT TO THE PRESIDENT 

The President, 

The White Bouse. 

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 
Medium and Low Priced Jewelry Manufacturing Industry, submitted 
by the Code Authority for the Medium and Low Priced Jewelry 
Manufacturing Industry. 

The purpose and effect of the amendment are to authorize the 
Code Authority to submit a budget and method of assessment upon 
which funds shall be contributed by members of the Industry. 

The Deputy Administrator in liis final report to me on said amend- 
ment to said Code having found as herein set forth and on the basis 
of all the proceedings in this matter: 

I find that : 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose of 
cooperative action amcng trade groups, by inducing and maintaining 
united action of labor 'ud management under adequate governmental 
sanction and supervision, by eliminating unfair competitive practices, 
by promoting the fullest possible utilization of the present produc- 
tive capacity of the industries, by avoiding undue restrictions of 
production (except as may be temporarily required) by increasing 
the consumption of industrial and agricultural products through 
increasing purchasing power, by reducing and relieving unemploy- 
ment, by improving standards of labor, and by otherwise rehabili- 
tating industry, 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) 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. 

(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 
Amendment. 

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

Hugh S. Johnson, 

A dininis trator. 
June 26, 1934. 

(302) 



AMENDMENT TO CODE OF FAIR COMPETriTON FOR THE 
MEDIUM AND LOW PRICED JEWELRY MANUFACTUR- 
ING INDUSTRY 

Delete Section 5 of Article VII and insert in lieu thereof the 
f ollowing : 

" Each trade or industrial association directly or indirectly par- 
ticii3ating in the selection or activities of the Code Authority shall 
impose no ineciuitable restrictions on membership." 

Add the followino- as Sections 6, 7, 8, and 9 of Article VII : 

'• Section 6. It being found necessary in order to support the ad- 
ministration of tliis code and to maintain the standards of fair 
competition 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 neces- 
sary (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 contriliuted 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 members of the industry, and 
to that end, if necessary, to institute legal proceedings therefor in 
its own name. 

'- Section 7. Each member of the industry shall pay his or its 
equitable 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. 
Only members of the industry complying with the code and con- 
tributing to the expenses of its administration as hereinabove pro- 
vided, shall be entitled to participate in the selection of members 
of the Code Authority or to receive the benefits of any of its voluntary 
activities. 

" Section 8. The Code Authority sliall neither incur nor pay any 
obligation in excess of the amount thei-eof as estimated in its ap- 
proved 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 Adminis- 
trator shall have so approved. 

'• Section 9. Failure on the part of any member of the industry 
to contribute his or its equitable contribution to the expenses of 
maintaining the Code Authority, determined as hereinabove pro- 
vided, shall be a violation of this Code, subject however to rules 
and regulations issued by the Administrator which pertain hereto." 

Approved Code No. 175 — Amendment No. 1. 
Registry No. 1215-1-01. 

(303) 



Approved Code No. 130 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PRECIOUS JEWELRY PRODUCING INDUSTRY 

As Approved on June 26, 1934 



ORDER 



Approvixg Amendment to Code of Fair Competition for the 
Precious Jewelry Producing Indusi-rt 

An application having been duly made pursuant to and in full 
compliance with the j)rovisions 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 Precious Jewelry Pro- 
ducing Industiy, and opportunity to be heard having been afforded 
all interested parties, and any objections filed having been duly con- 
sidered, and the annexed report on said amendment, containing find- 
ings 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 
j^ertinent 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. 

Hugh S. Johnson, 
Adviinistrato7' for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

D i vision A dminis trator. 

Washington. D.C, 

June 26, 1934. 

(305) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : An application has been duly made pursuant to and in full 
compliance with the provisions of the National Industrial Recovery 
Act, for an amenchnent to the Code of Fair Competition for the 
Precious Jewelry Producinij; Industry, submitted by the Code Au- 
thority for the Precious Jewelry Producing Industry. 

The purpose and eii'ect of the amendment are to authorize the Code 
Authority to submit a budget and method of assessment upon which 
funds shall be contributed by members of the Industry. 

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

I find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title 1 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 gen- 
eral welfare by promoting the organization of industry for the 
purpose of cooperative action among trade groups, by inducing and 
maintaining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of the industries, by avoiding undue 
restrictions of production (except as may be temporarily required) 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and 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 withf)ut limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) 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. 

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

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

Hugh S. Johnson, 

Ad7ni7risf7'afo)\ 
June 26, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE PRECIOUS JEAVELRY PRODUCING INDUSTRY 

Delete Paragraph (d), Section 2, Article YI and insert in lieu 
thereof the following : 

" Each trade or industrial association directly or indirectl}^ par- 
ticipating in the selection or activities of the Code Authority shall 
impose no inequitable restrictions on membership." 

Add the following as Sections 5, G, 7 and 8 of Article VI : 

'' Section 5. It being found necessary in order to support the ad- 
ministration of this code and to maintain the standards of fair com- 
petition established hereunder and to effectuate the policy of the 
Act, the Code Authority is authorized : 

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

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

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain, equitable con- 
tribution 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. 

" Section G. Each member of the industry shall pay his or its 
equitable contribution to the expenses of the maintenance of the 
Code Authority, determined as hereinabove provided, and subject to 
the rules and regulations pertaining thereto issued l)y the Adminis- 
trator. Only members of the industry complying with the code and 
contributing to the expenses of its administration as hereinabove pro- 
vided, shall be entitled to participate in the selection of members of 
the Code Authoritj^ or to receive the benefits of any of its voluntary 
activities. 

" Section T. The Code Authority shall neither incur nor pay any 
obligation in excess of the amount thereof as estimated in its ap- 
proved 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 Admin- 
istrator shall have so approved. 

" Section 8. Failure on the part of any member of the industry 
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, subject however to rules and regula- 
tions issued by the Administrator which pertain hereto. " 

Approved Code No. 130 — Amendmeut No. 1. 
Registry No. 1215-06. 

(307) 



I 



Approved Code No. 347M — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

WATER POWER EQUIPMENT INDUSTRY 



ORDER 



Modification of Supplementary Code of Fair Competition for the 
Water Power Equipment Manufacturing Industry 

A division of the machinery and allied products industry 

WHEREAS, the Supplemental Code of Fair Competition for the 
Water Power Equipment Manufacturing Subdivision of Machinery 
and Allied Products Industry was duly approved by my order dated 
June 7, 1934, upon condition, however, that the provisions of Article 
VIII, Sections 6 to 9, inclusive, be stayed for a period of fifteen (15) 
days, then to become effective " unless, I, by my further order, other- 
wise direct; within which time cause may be shown, if any there be, 
why the above provisions should not become effective " ; and 

WHEREAS, by the above mentioned order it was directed that the 
temporary Code Authority for this Subdivision send notice of the 
stay of these provisions and of the opportunity to show cause why 
they should not become effective to all known employers of the 
Subdivision; and 

WHEREAS, notice in accordance with my order has not been 
sent to all known emplovers of the Subdivision; 

NOW, THEREFORE, I, Hugh S. Johnson, Administrator for 
Industrial Recovery, pursuant to authority vested in me by Execu- 
tive Orders of the President, including Executive Order No. 6543-A, 
dated December 30, 1933 and otherwise; do hereby order and direct 
that the application of the provisions of Article VIII, Sections 6 to 
9, inclusive, of the above mentioned Supplemental Code be and they 
hereby are stayed for a further period of fifteen (15) days from the 
date of expiration of the original fifteen (15) day period, then to 
become effective unless I by my further order otherwise direct; 
within which time cause may be shown, if any there be, why the 
above provisions should not become effective ; and that notice of the 
stay of these provisions and of the opportunity to show cause why 
they should not become effective be sent to all employers of the 
Subdivision. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Acting Division Administrator. 

Washington, D.C, 

Jwm 26, 193i. 

(309) 



REPORT TO THE PRESIDENT 

The President, 

The White Rouse. 

Sir : The Supplemental Code of Fair Competition for the Water- 
power Equipment Subdivision of the Machinery and Allied Products 
Industry, approved June 7, 1934, established a stay, of the provisions 
of Sections 6 to 9 inclusive of Article VIII, " for a period of fifteen 
(15) days; then to become effective unless I, by my further order, 
otherwise direct ; within which time cause may be shown, if any there 
be, why the above provisions should not become effective; and that 
the Temporary Code Authority send notice of the stay of these pro- 
visions and of the opportunity to show cause why they should not 
become effective to all known employers of the Subdivision." 

This has proven to be insufficient time in which the Temporary 
Code Authority may comply with this fifteen (15) day provision, and 
the Assistant Deputy, in his report to me on this matter, having 
found that reasonable diligence has been exerted by the Temporary 
Code Authority to effect the distribution of said notice, and that 
the first fifteen (15) day period was not sufficient to effect the re- 
quired distribution of said notice, has accordingly recommended that 
an additional fifteen (15) day period be granted for this purpose. 

For these reasons, therefore, I have approved an order providing 
for a fifteen (15) day extension of time within which this Subdivi- 
sion shall conform to the requirements of the provisions of said stay 
affecting Sections 6 to 9 inclusive, of Article VIII of said Code of 
Fair Competition for the Waterpower Equipment Subdivision of 
Machinery and Allied Products Industry. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 

June 26, 1934. 

Approved Code No. 347M — Amendment No. 1. 
Registry No. 1312^06. 

(310) 



Approved Code No. 84 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 



FOR THE 



FABRICATED METAL PRODUCTS MANUFAC- 
TURING AND METAL FINISHING AND METAL 
COATING INDUSTRY 

As Approved on June 27, 1934 



ORDER 



AppRinixG Amendment of Code of Fair Competition for the Fab- 
ricated Metal Products jNIanufacturing and Metal Finishing 
and Metal Coating Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act. approved June 16. 1933. for approval of amendment 
to the Code of Fair Competition for the Fabricated Metal Products 
Manufacturing ond Metal Finishinii: and Metal Coating Industry, 
and due consideration having been given 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 Order No. 6543-A, 
dated December 30, 1933. and otherwise; do hereby incorporate, by 
reference, said annexed 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 pur- 
poses of said Title of said Act. and do hereby order that said amend- 
ment 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, 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. 
Barton W. Mueray. 

Acting Division Administrator. 

Washington. D.C, 

June 27, WSk- 

(311) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Amendment to Section 7 of Article 
IV of the Code of Fair Competition for the Fabricated Metal 
Products Manufacturing and Metal Finishing and Metal Coating 
Industry, submitted by the Code Authority of this Industry in ac- 
cordance with the provisions of Article VII of said Code approved 
November 2, 1933. 

GENERAL STATEMENT 

This Amendment is submitted by the Code Authority of the 
Industr}^ in order that the Code may conform to the provisions 
of Administrative Order No. X-36, approved on May 26, 1934, 
governing the collection of expenses of code administration. 

FINDINGS 

The Deputy Administrator in his final report to me on said 
Amendment to ^-aid Code having found as herein set forth and on 
the basis of all tlie proceedings in this matter : 

I j5nd that: 

(a) Said 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 removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof and will provide for the 
general welfare by promoting the organization of industry for the 
purposes of cooperative action among the trade groups, by inducing 
and maintaining united action of labor and management under 
adequate governmental sanctions and supervision, by eliminating 
unfair compeititve 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 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 Amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) 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. 

(312) 



313 

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

For these reasons, therefore, I ha\e approved this Amendment, 
such approval and such Amendment to take effect in fifteen (15) 
days, unless 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 27, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE FABRICATED METAL PRODUCTS MANUFACTUR- 
ING AND METAL FINISHING AND METAL COATING 
INDUSTRY 

The following provisions to be substituted in lieu of Section 7 of 
Article IV: 

It being found necessary in order to support the administration 
of this code and to maintain the standards of fair competition 
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 neces- 
sary (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 members 
of the industry: 

(c) After such budget and basis of contribution have been ap- 
proved bv the Administrator, to determine and obtain equitable 
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. 

Each member of the industry, whether operating under an ap- 
proved supplementary code or otherwise, shall pay 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. 
Only members of the industry complying with the code and con- 
tributing to the expenses of its administration as hereinabove pro- 
vided, shall be entitled to partici]:>ate in the selection of members of 
the Code Authority or to receive the benefits of any of its voluntary 
activities or to make use of any emblem or insignia of the National 
Recovery Administration. 

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 have so 
approved. 

Approved Code No. 84— Amendment No. 2. 
Registry No. 1118-06. 

(314) 



Approved Code No. 117 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

GEAR MANUFACTURING INDUSTRY 

As Approved on June 27, 1934 



ORDER 



Amendment to Code of Fair Competition for the Gear 
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, ai^provecl June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competitioii for the Gear Manufacturing 
Industry, and as contained in a Published Notice of Opportunity to 
File Objections. Administrative Order No. 117-8, dated May 31, 
1934, and no objections having been filed as provided in said Pub- 
lished Notice, and the annexed report on said amendment, contain- 
ing findings with respect thereto, having been made and directed 
to the President, 

NOW. THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authoritv vested in me by Executive Orders of the 
President, including Executive Order 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 approveci, and that the previous approval of said 
Code is hereby amended to include an approval of said Code in its 
entirety as amended, such approval and such amendment to take 
effect ten (10) 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 Recouerfj. 

Approval recommended : 
Barton W. Murray, 

Acting Division Adminhtrator. 

Washington, D.C. 

June 27, 193Jf. 

(315) 



REPORT TO THE PRESIDENT 

The President, 

The WhJfe 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 
Gear Manufacturing Industry, submitted by the Code Authority for 
the said Industry. 

The existing provision of Article VII, Section 1 (b) of the Code 
for said Industiy, is entirely inadecjuate in view of Executive Order 
6678 and Administrative Order X-36, and it is therefore evident that 
the proposed amendment to Article VII of said Code, the provisions 
of which follow closely the text of the above mentioned Orders,, 
will overcome the existing inadequate provisions. 

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 : 

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 main- 
taining united action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tions of production (except as may be temporarily required), by in- 
creasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as 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 amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) The amendment and the Code as amended are not designed 
to and will not eliminate or opi:)ress small enterprises and will not 
operate to discriminate against them. 

(31G) 



317 

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

For these reasons, therefore, I have approved this amendment, 
such approval and such amendment to take effect in ten (10) days, 
unless 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, 

AdTninistrator. 
June 27, 1934. 



7G0o4— 34- 



MODIFICATION TO CODE OF FAIR COMPETITION FOR 
THE GEAR MANUFACTURING INDUSTRY 

Purpose 

Pursuant to Article VII of the Code of Fair Competition for the 
Gear Manufacturing Industry, duly approved by the President on 
November 14, 1933, and further to effectuate the policies of Title I 
of the National Industrial Recovery Act, the following modification 
is established as a part of said Code of Fair Competition and shall 
be binding upon every member of the Gear Manufacturing Industry. 

Modification 

Modify Article VII by deleting Section I (b) and substituting in 
lieu thereof the following : 

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

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. 

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

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

c. Each member of the IiKkistry shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the Code Authority 
as hereinabove provided, and subject to rules and regulations per- 
taining tliereto issued by the Administrator. Only members of the 
Industi'v complying with the Code and contributing to the expenses 
of its a(hninistr"ation as hereinabove provided 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 tlie National Recovery Administration. 

d. The Code Authority shall neither incur nor pay any obligation 
in excess of the amount thereof as estimated in its aj^proved budget. 
excei)t upon approAal of the Administrator; and no subsequent 

(318) 



319 

budget shall contain any deficiency item for expenditures in excess 
of prior budget estimates except those which the Administrator shall 
have so approved. 

e. Any member of the Industry is eligible for membership in the 
Association, and there shall be iio inequitable restrictions on such 
membership. 

Appi'oved Code No. 117 — Amendment No. 1. 

Keuistry No. 1399-33. 



Approved Code No. 367 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

METAL TREATING INDUSTRY 

As Approved on June 27, 1934 



ORDER 



Amendment to Code of Fair Competition for the Metal Treating 

Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Metal Treating Industry, 
and as contained in a Published Notice of Opportunity to File 
Objections, Administrative Order No. 367-3, dated June 2, 1934, 
and no objections having been filed as provided in said Published 
Notice, and the annexed report on said amendment, containing find- 
ings 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 f(jr 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 
report and do find that said amendment and the Code as constituted 
after being amended comply in all respects with the pertinent pro- 
visions 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 amended to include an approval of said Code in its entirety 
as amended, such approval and such amendment to take effect ten 
(10) 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 Industrici Recovery. 

Approval recommended : 
Barton W. Murray, 

Acting Division Administrator, 

Washington, D.C, 

(321) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: An application has been duly made pursuant to and in full 
compliance with the provisions of the National Industrial Recovery 
Act, for an Amendment to the Code of Fair Competition for the 
Metal Treating Industry, submitted by the Code Authority for the 
said Industry. 

The existing provision of Article VI, Section 7 of the Code for 
said Industry, is entirely inadequate in view of Executive Order 
6678 and Administrative Order X-36. and it is therefore evident 
that the proposed amendment to Article VI of said Code, the provi- 
sions of which follow closely the text of the above mentioned Orders, 
will overcome the existing inadequate provisions. 

FINDINGS 

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

I find that : 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general wel- 
fare by promoting the organization of industry for the purpose of 
cooperative action among trade groups, by inducing and maintaining 
united action of labor and management under adequate governmental 
sanction and supervision, by eliminating unfair competitive practices, 
by promoting the fullest possible utilization of the present produc- 
tive capacity of the industries, by avoiding undue restrictions of 
production (except as may be temporarily required), b}^ increasing 
the consumption of industrial and agricultural products through in- 
c:easing purchasing power, by reducing and relieving unemploy- 
ment, by improving standards of labor, and by otherwise reha- 
bilitating industry. 

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

(c) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) 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. 

(322) 



323 

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

For tliese reasons, therefore, I have approved this amendment. 
Kes])ectfully, 

Hugh S. Johnsox, 

Administrator. 
June 27, 1934. 



MODIFICATION TO CODE OF FAIR COMPETITION FOR 
THE METAL TREATING INDUSTRY 

Purpose 

Pursuant to Article VI of the Code of Fair Competition for the 
Metal Treating Industry, duly approved by the Administrator on 
March 26. 1934, and further to effectuate the policies of Title I of 
the National Industrial Act, the following modification is estab- 
lished as a part of said Code of Fair Competition and shall be 
binding upon every member of the Metal Treating Industry. 

MODIFICATTON 

Modify Article VI by deleting Section 7 and substituting in lieu 
thereof the f olloAving : 

7. It being found necessary in order to support the administration 
of this Code and to maintain the standards of fair competition estab- 
lished hereunder and to effectuate the policy of the Act, the Code 
Authorit}^ is authorized, subject to the approval of the Adminis- 
trator : 

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

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary, 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the funds necessary 
to suj^port such budget shall be contributed by all 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 Industry, 
and to that end. if necessary, to institute legal proceedings therefor 
in its own name. 

8. Each member of the Industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Author- 
ity as hereinaboA'e provided, and subject to rules and regulations 
pertaining thereto issued by the Administrator. Only members of 
the Industry complying with the Code and contributing to the ex- 
penses of its administration as hereinabove provided shall be entitled 
to particii)ate 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. 

(324) 



325 

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 
have so approved. 

Approved Code No. 367 — Amendment No, 1. 
Registry No. 1118-25. 



Approved Code No. 71 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PAINT, VARNISH AND LACQUER 
MANUFACTURING INDUSTRY 

As Approved on June 27, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Paint, Varnish and Lacquer Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I, of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to' the Code of Fair Competition for the Paint, Varnish and 
Lacquer Manufacturing Industry, and an opportunity to file objec- 
tions having been duly given and the annexed report on said amend- 
ment, containing finclings with respect thereto, having been made 
and directed to the President : 

XOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate, by reference, said 
annexed report and do find that said 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. 

Hugh S. Johnson, 
Adminisfrator for Industrial Recovery. 

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

"Washington, D.C, 

June 27, 193^. 

(327) 



REPORT TO THE PRESIDENT 

The President, 

The Wkite Home. 

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 
Paint, Varnish and Lacquer Manufacturing Industry, submitted by 
the Paint Industry Recovery Board. 

An opportunity to file objections was given to all interested parties. 
This Notice of Opportunity to File Objections was published on May 
3, 1934. No objections were received from members of the Industry. 

The amendment is an addition to Article X. A new paragraph is 
inserted in this Article immediately following the first i3aragraph. 
This amendment provides that the Paint Industry Recovery Board, 
the code authority for this industry, may incorporate. 

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 : 

I find that : 

(a) The Code as amended complies in all respects with the perti- 
nent provisions of Title I of the National Industrial Recovery Act, 
including without limitation Subsection (a) of Section 3, Subsection 
(a) of Section 7 and Subsection (b) of Section 10 thereof. 

(b) The Code empowers the Paint Industry Recovery Board to 
present the aforesaid amendment on behalf of the Industry as a 
whole. 

(c) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) 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. 

(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 
amendment. 

For these reasons, this amendment has been approved. 
Respectfully, 

Hugh S. Johnson, 

AdTninistrafor. 
June 27, 1934. 

(328) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE PAINT, VARNISH AND LACQUER MANUFACTUR- 
ING INDUSTRY 

Article X is auiendod by the addition of the following paragraph 
wliicli is to follow immediately after the first paragra})h: 

■ The Paint Industry Recovery Board may incorporate under the 
laws of any state of the United States or of the District of Columbia 
such corporation to be not for profit and to be known as ' Paint In- 
dustry Recovery Board, Inc.'; provided that the powers, duties, 
objects and purjioses of the said corporation, shall, to the satisfaction 
of the Administrator, be limited to the powers, duties, objects and 
purposes of the Paint Industry Recovery Board as provided in the 
Code : provided further, that the existence of said corporation shall 
be during the term of the Code; and provided further that the cer- 
tifieate of incorporation and by-laws and any amendments thereto 
shall be subject to approval of the Administrator.'' 

Approved Code No. 71 — Amendment No. 3. 
Registry No. 619-1-03 

(329) 



Approved Code No. 137 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WARM AIR FURNACE MANUFACTURING 
INDUSTRY 

As Approved on June 27, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the Warm 
Air Furnace Manufacturing Industry 

An application having been made pursuant to and in full compli- 
ance with the provisions of Title I of the National Industrial Recov- 
ery Act, approved June 16, 1933, for approval of amendments to a 
Code of Fair Competition for the Warm x\ir Furnace Manufacturing 
Industry, and hearings having been duly held thereon and the an- 
nexed report on said amendments, containing findings with respect 
thereta, having been made and directed to the Presiclent. 

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 amendments and the Code as constituted 
after being amended comply in all respects wnth the pertinent provi- 
sions and will promote the policy and purposes of said title of said 
Act, and do hereby order that said amendments be and they are 
hereby approved, and that the previous approval of said Code is 
hereby modified to include an approval of said Code in its entirety 
as amended. 

Hugh S. Johnson, 
AdmrnhtratoT for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Acting Division Administrator. 

Washington, D.C, 

June 27, WSI^. 

(331) 



KEPORT TO THE PRESIDENT 

The President, 

The' White House. 

Sib: This is a report on amendments of the Code of Fair Com- 
petition for the "Warm Air Furnace Manufacturing Industry as 
revised after a Public Hearing conducted in Washington, D.C., on 
May 24, 1934, in accordance with the provisions of the National 
Industrial Recovery Act. 

Amendment No. 2 provides for the incorporation of the Code Au- 
thority. Amendments No. 4 and No. 5 prevent customers from being 
misled. Amendment No. 7 provides for collection of funds by the 
Code Authority for administration purposes. 

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

I find that : 

(a) The amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the gen- 
eral welfare by promoting the organization of industry for the 
purpose of cooperative action of labor and management under ade- 
quate governmental sanction and supervision, by eliminating unfair 
competitive practices, by promoting the fullest possible utilization 
of the present productive capacity of industries, by avoiding undue 
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 per- 
tinent provisions of said Title of said Act, including without limi- 
tation sub-section (a) of Section 3, sub-section (a) of Section 7 and 
sub-section (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendments on behalf of the industry as a whole. 

(d) Tlie amendments and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(f) Tliose engaged in other steps of the economic process have 
not been depiived of the right to be lieard prior to approval of said 
amendments, 

(332) 



333 

For these reasons, therefore, I have approved these amendments 
to the Code of Fair Competition for the Warm Air Furnace Manu- 
facturing Industry. 
Respectfully, 

Hugh S. Johnson, 

A d/ministrator. 
June 27, 1934. 



76054—34- 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE WARM AIR FURNACE MANUFACTURING 
INDUSTRY 

Amendment No. 2 

Amend Article IV, Section 1, by adding the paragraph, " The 
Code Authority of the Warm Air Furnace Manufacturing Industry 
may incorporate under the laws of any state of the United States or 
of the District of Columbia, or may assume or adopt such existing 
corporate form under any of such laws as it may deem appropriate 
for the proper performance of its activities, powers and duties here- 
under, such corporation or corporate form to be not for profit and 
to be known as " Code Authority of the Warm Air Furnace Manu- 
facturing Industry, Incorporated " ; provided that the powers, 
duties, objects and purposes of the said corporation shall, to the 
satisfaction of the Administrator, be limited to the powers, duties, 
objects and purposes of the Code Authority of the Warm Air 
Furnace Manufacturing Industry as provided in this Code; pro- 
vided, further, that the existence of the said corporation shall be 
during the term of the Code; and provided, further, that the certifi- 
cate of incorporation and by-law^s and amendments to either shall be 
subject to the approval of the Administrator. 

If at any time, the Administrator shall determine that the corpo- 
rate status assumed by the Code Authority is interfering with the 
proper exercise of its powers and duties under this Code, or with the 
effectuation of the policies or purposes of the Act, he may, after such 
notice and hearing as he may deem necessary, recjuire an appropriate 
modification of the structure of the Corporation (if consistent with 
the law of the State of Incorporation), the substitution of the cor- 
poration created under the laws of another State in the same manner 
as the existing Code Authority, the substitution of a non-corporate 
Code Authority truly represeritative of the Industry or such other 
actions as he may deem expedient." 

Amendment 4 

Amend Article III by adding after Section 1 (1) a new Section 
number 1 (m) as follows: 

"1 (m) Publishing firepot measurements which do not represent 
the true inside diameter of the firepot at the top, unless the manu- 
facturer chooses to publish a measurement taken at some other point, 
in which event the exact point where such measurement was taken, 
shall be designated. A tolerance of one percent shall be allowed in 
the publication of anj^ measurements pursuant to the foregoing." 

(334) 



335 

Amendment 5 

Amend Article III by addiiio: after Section 1 (m) as prescribed in 
Amendment 4 a new Section nnmber 1 (n) as follows: 

" 1 (n) l*ublishin<^ a rating in terms of square inches of warm 
air leader pipe area for any furnace, unless such ratiuir has been 
computed according to the furnace rating formula contained in the 
Standard Code published by the National Warm Air Heating and 
Air Conditioning Association, except that a manufacturer may pub- 
lish a different rating provided he si)ecitically states in his literature 
that such rating is not a Standard Code rating." 

Amendment 7 

Amend Article Y by striking out Section 2 (c) and inserting in 
lieu thereof the following: 

"" Section 2 . (c) It being found necessary in order to support the 
administration of this code and to maintain the standards of fair 
competition established hereunder and to effectuate the policy of the 
Act. the Code Authority is authorized : 

(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 
(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 ; 

(3) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable con- 
tribution 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. 

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 regula- 
tions pertaining thereto issued by the Administrator. Onl}^ members 
of the industry complying wath the Code and contributing to the ex- 
penses of its administration as hereinabove provided, shall be entitled 
to participate in the selection of members of the Code Authority or 
to receive the benefits of any of its voluntary activities or to make 
use of any emblem or insignia of the National Recovery Administra- 
tion. 

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." 

Apiiroved Code No. 137 — Amendment No. 2. 
Registry No. 1103-07. 



Approved Code No. 219 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BEDDING MANUFACTURING INDUSTRY 

As Approved on June 29, 1934 



ORDER 



APPROVING Amendment of Code or Fair Competition for the 
Bedding 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 Bedding Manufacturing 
Industry, and notice of opportunity to file objections thereto having 
been issued, 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 
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 amendment and the Code as 
constituted after being amended comply in all respects with the 
pertinent provisions and will promote the policy and purpose's 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. 
Apj^roval recommended : 

Barton W. Murray, 

Acting Division Administrator. 

Washington, D.C, 

June 29, 193 If. 

(337) 



EEPOET TO THE PRESIDENT 

The President, 

The White Hou^e. 

Sir : This is a report on the modification of the Code of Fair Com- 
petition for the Bedding Manufacturing Industry as approved by 
me on January 23, 1934. Application was made under date of April 
24, 1934, by the Code Authority for the Bedding Manufacturing In- 
dustry for modification of the provisions of Article VI. Section 2, 
of the Code. Fair notice of opportunity to file objections to this 
proposed amendment was given to all interested parties. 

This amendment originally was drawn up and proposed in accord- 
ance with Executive Order No. 6678, dated April 14, 1934, and with 
my Administrative Order No. X-20. Since then, it has been revised 
in accordance with Administrative Order No. X-36, superseding Ad- 
ministrative Order No. X-20. It is intended to govern the collection 
of expenses of code administration by the Bedding Code Authority. 

This amendment doe3 not in any way affect the labor provisions of 
the Code nor anything other than assessment for expenses of code 
administration. 

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

I find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for 
the general welfare by promoting the organization of industry for 
the purpose of cooperative action among trade groups, by inducing 
and maintaining united action of labor and management under 
adequate governmental sanction and supervision, by eliminating 
unfair competitive practices, by promoting the fullest possible utili- 
zation of the ])resent productive capacity of industries, by avoiding 
undue restriction of production (except as may be temporarily re- 
quired), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) 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. 

(338) 



339 

(d) The amendment and the Code as amended are not designed to 
and will not porniit monopolios or monopolistic practices. 

(e) The aineiKhuent 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. 

I believe the amendment to be fair to labor, to the consumer and 
to the industry, and for these reasons, therefore, I approve this 
amendment. 

Respectfully, 

Hugh S, Johnson, 

Administrator. 
June 29, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE BEDDING MANUFACTURING INDUSTRY 

Article VI, Section 2, of the Code of Fair Competition for the 
Bedding Manufacturing Industry, approved January 23, 1934, shall 
be and hereby is amended to read as follows : 

2. It being found necessary in order to support the Administra- 
tion of this code and to maintain the standards of fair competition 
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 necessary 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the funds necessary 
to support such budget shall be contributed by members of the 
industry ; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable con- 
tribution 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. 

3. Each member of the industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Author- 
ity, determined as hereinbefore provided, and subject to rules and 
regulations pertaining thereto issued by the Administrator. Only 
members of the industry complying with the code and contributing 
to the expenses of its administration as hereinabove provided, shall 
be entitled to participate in the selection of members of the Code 
Authority or to receive the benefits of any of its voluntary activities 
or to make use of any emblem or insignia of the National Recovery 
Administration. 

4. The Code Authority shall neither incur nor pay any obliga- 
tion in excess of the amount thereof as estimated in its approved 
budget, except upon approval of the Administrator; and no subse- 
quent budget shall contain any deficiency item for expenditures in 
excess of prior budget estimates except those which the Adminis- 
trator shall have so approved. 

Approved Code No. 219 — Amendment No. 1. 
Registry No. 1C07-1-01. 

(340) 



Approved Code No. 6 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LACE MANUFACTURING INDUSTRY 

As Approved on June 29, 1934 



ORDER 



Approving Modxticatign of Code of Fair Competition for the Lace 
Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a modification 
of a Code of Fair Competition for the Lace Manufacturing Industry, 
and an opportunity to file objections thereon having been given and 
the annexed report on said modification, 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 modification and the Code as 
constituted after being modified comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said modification 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 modified. 

Hugh S. Johnson, 
Administrator for Industrial Recoveinf. 

Approval recommended : 
R. L. Houston, 
Division Administrator. 

Washington, D.C, 

June 29, 1931^. 

(341) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: I have the honor to submit herewith an amendment to the 
Code of Fair Competition for the Lace Manufacturing Industry. 
The amendment, which is attached, was presented by the Code 
Authority. 

Notice of opportunity to file objections to this amendment was 
given and no objections were received. 

The amendment provides that Article VIII of the Code shall be 
omitted and the provision contained in the Executive Order dated 
April 14, 1934, making the payment of the costs of administering a 
Code of Fair Competition mandatory upon all members of the 
Industry, is included. 

FINDINGS 

The Deputy Administrator in his final report to me on said 
amendment to said Code having found as herein set forth and on 
the basis of all 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 ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and main- 
taining united action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by 
increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section T and 
Subsection (b) of Section 10 thereof. 

(c) The Code Authority is empowered to present the aforesaid 
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. 

(342) 



343 

(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 the above reasons this amendment has been approved by me. 

Hugh S. Johnson, 

Ad/ministratoT. 
June 29. 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE LACE MANUFACTURING INDUSTRY 

Article VIII of the Code of Fair Competition for the Lace Man- 
ufacturing Industry shall be amended to read as follows : 

" 1. It being found necessary in order to support the administra- 
tion of this Code and to maintain the standards of fair competition 
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 meat such obligations out 
of funds which may be raised as hereinafter provided and which 
shall be held in trust for the purposes of the Code ; 

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

"(c) After ,such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable con- 
tribution 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. Each member of the Industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Au- 
thority, determined as hereinabove provided, and subject to rule3 
and regulations pertaining thereto issued by the Administrator. 
Only members of the Industry complying with the Code and con- 
tributing to the expenses of its administration as hereinabove pro- 
vided, shall be entitled to participate in the selection of members 
of the Code Authority or to receive the benefits of any of its volun- 
tary activities or to make use of any emblem or insignia of the 
National Recovery Administration. Failure to contribute to the 
expenses of this Code, as provided herein, shall constitute a violation 
of the Code. 

" 3. The Code Authority shall neither incur nor pay any obliga- 
tion in excess of the amount thereof as estimated in its approved 
budget, except upon approval of the Administrator; and no subse- 
quent budget shall contain any deficiency item for expenditures in 
exces.s of prior Ijudget estimates except those which the Admin- 
istrator shall have so approved." 

Approved Code No. 6 — Atueiidmeut No. 2. 
Registry No. 244-01. 

(344) 



Approved Code No. 226 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LIGHT SEWING INDUSTRY EXCEPT GARMENTS 

As Approved on June 29, 1934 



ORDER 



Modification of Code of Fair Competition for the Light Sewing 
Industry Except Garments 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933. for approval of a modification 
of a Code of Fair Competition for the Light Sewing Industry Except 
Garments, and hearings having been duly held thereon and the an- 
nexed report on said modification, 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 modification and the Code as con- 
stituted after being modified comply in all respects with the pertinent 
provisions and will promote the policy and purposes of said Title of 
said Act, and do hereby order that said modification 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 modified. 

Hugh S. Johnson, 
Achninistrator for Industrial Recovery. 

Approval recommended : 
R. L. Houston, 

Division Administrator. 

Washington, D.C, 

June 29, 193J^. 

<345> 



REPORT TO THE PRESIDENT 

The President, 

TU White Home. 

Sir : This is a report on the hearing on an amendment to the Code 
of Fair Competition for the Light Sewing Industry Except Gar- 
ments, held in Room 109 of the Raleigh Hotel on April 26, 1934. 
The amendment, which is attached, was presented by the Divisional 
Committee. 

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

The amendment consists of several additional unfair trade prac- 
tices including a prohibition against selling below cost when, and 
if, a standard system of cost accounting or estimating is approved 
by the Administrator. The amendment also provides that learners 
may be employed for a period of not more than four (4) weeks at 
80% of the minimum wage but limits the number of learners to 10% 
of the total number of employees. 

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 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 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 
purpose of cooperative action among trade groups, by inducing and 
maintaining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by 
increasing the consumption of industrial and agiucultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as 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. 

(346) 



347 

(c) The Code empowers the Divisional Committee to present the 
aforesaid amendment on behalf of the Division 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 the above reasons this amendment has been approved by me. 

Hugh S. Johnson, 

Administrator. 
June 29, 1934. 



AMENDMENT TO CODE OF FAIK COMPETITION FOR 
THE LIGHT SEWING INDUSTRY EXCEPT GARMENTS 

Division No. 5, Fabric Auto Equipment Division, shall be amended 
as follows : 

There shall be added to Article II — Trade Practices — the following 
provisions : 

"(j) To make any allowance or discount for advertising or for 
payment for space in newspapers, magazines, guides, or directories 
on behalf of any retailer and/or wholesaler to be used in promoting 
the sale of merchandise to the consumer in excess of one-half of the 
cost of the advertising; providing, however, that payment for such 
advertising shall not be made until a copy of the publication contain- 
ing the advertising together with receipted bill therefor is presented 
to a member of the Division. The supplying of cuts, matrices, or 
window cards shall not be included in such prohibition. Nothing 
herein, however, shall prohibit any member of the Division from 
nationally or generally advertising his merchandise. 

"(k) To make a contract for a definite quantity of advertising tire 
covers at a stipulated price and to deliver a smaller quantity without 
charging the regular price applying to the quantity delivered. 

"(1) To accept orders for future requirements which do not make 
provision for quantities, excepting that an average or underage of 
10% is allowed." 

Section (h) of Article II shall be amended to read as follows: 

" Selling on more liberal terms than 2%. 10 daj's E.O.M., net 30 
except that dating on seasonable merchandise may be allowed, but 
anticipation shall not be allowed at a rate of more than i/^ of 1% 
per month." 

There shall be added an Article III as follows : 

" When a standard system of cost accounting and methods of cost 
finding and/or estimating capable of use by all members of the 
Division is prepared by the Divisional Committee and approved by 
the Administrator, full details concerning said system shall be made 
available to all members of the Division. Thereafter, all members 
of the Division shall determine and/or estimate costs in accordance 
with the principles of such methods. 

" Following the approval of such system no member of the Divi- 
sion shall sell or exchange or offer to sell any product of the Division 
below his own cost of making such product, except to meet the com- 
petition of any member of the Division whose price for a product of 
equivalent quality is not less than his cost of making the product. 

" The Divisional Committee shall have the power to suspend the 
operation of the provisions of this Article provided five days" notice 
is given the Administrator and the members of the Division, and to 
make provisions for the disposal of discontinued lines, seconds, and 
other sales to be expected from the application of this Article." 

(348) 



349 

There shall be added an Article IV as follows : 

" Learners may be employed for a period not exceeding four (4) 
weeks at a rate of not less than 80% of the minimum wages called 
for in the Code, provided that no employer may employ more than 
10% of the total employees as learners, and provided further that 
any employer may be entitled to one learner at the above specified 
wage, and provided further that no employer can employ as a learner 
any employee who has been in the Division of the Industry within 
three years previous to the date of such employment." 

Approved Code No. 22G — Amendment No. 3. 
Registry No. 29&-50. 



76054—34 10 



Approved Code No. 42 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LUGGAGE AND FANCY LEATHER GOODS 
INDUSTRY 

As Approved on June 29, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Luggage and Fancy Leather Goods Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Luggage and Fancy 
Leather Goods Industry, and hearings having been duly held thereon 
and the annexed report on said amendment, containing findings with 
respect thereto, having been made and directed to the President: 

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 per- 
tinent 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. 

Hugh S. Johnson, 
Adtninistrator for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Adiyiinistrator. 

Washington, D.C, 

Jime 29, 1934. 

(351) 



REPOET TO THE PEESIDENT 

The President, 

The White House. 

Sir : This is a report on the amendments to the Code of Fair Com- 
petition for the Luggage and Fancy Leather Goods Industry and on 
the hearing conducted thereon in Washington, D.C., June 6, 1934, 
in accordance with the provisions ot Title I of the National Indus- 
trial Eecovery Act. 

The Luggage and Fancy Leather Goods Industry, through the 
Executive Code Committee, its Code Authority, has offered amend- 
ments to the Code of Fair Competition for the Luggage and Fancy 
Leather Goods Industry. 

RESUME or MODIFICATIONS 

1. For the inclusion of " wallets, desk sets, key cases and pencil 
cases ", upon which hearing was held and which should have been 
included in the amendment of March 10, 1934, but was omitted in 
copying through an oversight. 

2. For the inclusion of a further provision to Article V, Section 7, 
of the amendment of March 10, 1934, upon which hearing was held 
and which should have been included in the am.endment of that date, 
but was omitted in copying through an oversight. 

3. The provision which it is proposed to add to Article VII was 
included at the suggestion of the Administration in order to clarify 
and to comply with the policy of the Administration in the collec- 
tion of code authority assessments. 

4. The purpose of this amendment is to permit the Code Authority 
to incorporate. 

0. The purpose of Article VI, Section 12 (a) is to permit the 
retailer to procure his holiday merchandise in advance of the regular 
peak season, and to enable the industry to procure their orders at 
an earlier date so as to avoid last minute rush orders. 

6. The purpose of Article VI, Section 12 (b) of the Amendment 
of March 10. 1934, is to clarify the present section. 

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

I find that : 

(a) The Amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Eecovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and main- 

(.352) 



606 

taining united action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive i)ractices, by promoting the fullest possible utilization of the 
])resent pro(hictive capacity of the industries, by avoiding undue re- 
strictions of prochu'tion (except as may be temporarilv re(|uired), by 
increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with tlie 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) The Amendments and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) The Amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(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 
Amendments. 

For these reasons the Amendments have been approved. 
Respectfully, 

Hugh S. Johnson, 

Adrmnistrator. 
June 29, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
LUGGAGE AND FANCY LEATHER GOODS INDUSTRY 

In accordance with the procedure specified in Article VII, Section 8, 
of the Code of Fair Competition for the Luggage and Fancy Leather 
Goods Industry, the Executive Code Committee, being the Planning 
and Fair Practice Agency for the Industry, submits herewith the 
following amendments or modifications to the Code : 

1. It is proposed that Section 1, sub-section (b) of the amendment 
to the Code of Fair Competition for the Luggage and Fancy Leather 
Goods Industry, approved March 10, 1934, be amended by adding 
after the word" '' card cases " in the 5th line the following : " wallets, 
desk sets, key cases and pencil cases ". 

2. Add to Section 7, Article V, approved in the amendment of 
March 10, 1934, after the last paragraph, the following : 

" The Executive Code Committee may also grant the same privi- 
lege to another Division or Divisions of this Industry on the appli- 
cation of such Division or Divisions." 

3. It is proposed that Article VII entitled " Participation " be 
amended by adding the following thereto as Section 2 : 

" Section 2. A. It being found necessary to support the Adminis- 
tration of this Code, in order to effectuate the policy of the Act and 
to maintain the standards of fair competition established hereunder, 
the Code Authority is authorized : 

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

" 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 fore- 
going purposes, and 

'•(b) An equitable basis upon which the funds necessary to support 
such budget shall be contributed by all members of the Industry 
entitled to the benefits accruing from the maintenance of such stand- 
ards, and the administration thereof; 

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

" B. Each member of the industr}^ shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Author- 
it}^ determined as hereinabove provided, and subject to the rules and 
regulations pertaining thereto issued by the Administrator. Only 

(354) 



355 

members of the industry complyinfr witli the Code and contributing 
to the expenses of its administration as hereinabove provided, shall 
be entitled to participate in the selection of members of the Code 
Authority or to receive the benefits or any of its voluntary activities. 
^ C. The Code Authority shall neither incur nor pay any obli^ration 
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 whicli tlie xVdministrator shall have so 
approved.'' 

4. It is proposed that Section 1, Article VIII, after the words " as 
a Planning and Fair Practice Agency of the Industry " the following 
sentences be added : 

'' The Executive Code Committee may incorporate under the laws 
of any State of the United States or of the District of Columbia, such 
corporation to be not for profit and to be known as ' the Code Author- 
ity of the Luggage and Fancy Leather Goods Industry ' ; provided 
that the powers, duties, objects and purposes of the said corporation, 
shall, to the satisfaction of the Administrator, be limited to the 
powers, duties, objects and purposes of the Executive Code Commit- 
tee as provided in the Code; provided further, that the Code Author- 
ity shall submit to the Administrator, for his approval, its proposed 
Certificate of Incorporation and proposed by-laws, and no amendment 
of either shall be made without the like prior approval of the Admin- 
istrator. If at any time, the Administrator shall determine that the 
corporate status assumed by the Code Authority is interfering wnth 
the proper exercise of its powers and duties under this Code, or with 
the effectuation of the policies or purposes of the Act, he may, after 
such notice and hearing as he may deem necessary, require an appro- 
priate modification of the structure of the Corporation (if consistent 
with the law of the State of Incorporation), the substitution of a 
corporation created under the laws of another State in the same 
manner as the existing Code Authority, the substitution of a non- 
corporate Code Authority truly representative of the Industry or 
such other actions as he may deem expedient." 

5. It is proposed that paragraph " a ", Section 12, of Article VI, 
be amended to read as follows : 

(a) "In the brief case, hand luggage, sample case, sample trunk 
and trunk division of the Industry terms shall not exceed 2% 10 days, 
30 days extra from date of shipment, except that manufacturers shall 
be permitted to accept one order to a customer shipped after Octo- 
ber 15th, dated December 1st." 

6. It is proposed that paragraph " b ", Section 12, of Article VI, 
fls amended March 10, 1934, shall be amended to read as follows : 

(b) "In the fancy and small leather goods division of the Indus- 
try, terms to the chain and variety stores, wholesalers and mail order 
houses shall not exceed 2% 10 daj^s from date of shipment, with the 
privilege of giving E.O.M. (end of month) dating. To all other 
purchasers terms shall not exceed 3% 10 days from date of shipment, 
with the privilege of giving E.O.M. (end of month) dating, and from 
said purchasers manufacturers in the fancy and small leather goods 



356 

division shall be permitted to accept one order to a customer, 
shipped after August 1st, dated December 1st, with maximum terms 
3% 10 days, E.O.M. (end of month) dating, and also one order to a 
wholesaler, shipped after August 1st, dated December 1st, with 
maximum terms 2% 10 days, E.O.M. (end of month) dating." 

Approved Code No. 42 — Amendment No. 2. 
Registry No. 907-1-01. 



Approved Code No. 347 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MACHINERY AND ALLIED PRODUCTS INDUSTRY 

As Approved on June 29, 1934 



ORDER 



Approving Amendment of 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 amendment 
to a Code of Fair Competition for the Machinery and Allied Prod- 
ucts Industry, and hearings having been duly held thereon and the 
annexed report on said amendment, containing findings with respect 
thereto, having been made and directed to the President : 

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 per- 
tinent 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 participa- 
tion of the Pulp and Paper Machineiv Association in the activities 
of the Code as amended be conditioned upon its amending its Con- 
stitution and By-Laws to the satisfaction of the Administrator within 
thirty (30) days from the effective date of this amendment. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Acting Division Administrator. 

Washington, D.C, 

June 29, 193Jf. 

(357) 



REPORT 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 Machineiy and Allied Products Industry and the 
hearing conducted thereon in Washington, May 10, 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 defini- 
tion of the Industry by addition thereto of a specific definition cov- 
ering 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 ap- 
plication 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 provides 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. Gas-Powered Industrial Truck Manufacturing Subdivision. 

2. Mechanical Press Manufacturing Subdivision. 

3. Multiple V-Belt Drive Subdivision. 

4. Pulp and Paper Machinery Subdivision. 

Supplemental Codes have been filed for each of these Subdivisions 
and public hearings have been conducted thereon. ,The economic 
effect of including these Subdivisions in this Code will be shown 
when the respective Supplemental Codes are submitted for approval. 

(358) 



359 

FINDINGS 

The Deputy Administrator in his final report to nie 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 amcnchncnt to said Code and tlK> Code as amended are 
Avell designed to projnote the policies and purposes of Title I of the 
National Imhisti'ial Kecovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign conunerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of coo])erative action among trade groups, by inducing and maintain- 
ing united action of labor and management under adequate govern- 
mental sanction and supervision, by eliminating imfair competitive 
practices, by promoting the fullest possible utilization of the present 
productive capacity of industries, l3y avoiding undue restriction of 
production (except as may be temporarily required), by increasing 
the consumption of industrial and agricultural products through 
increasing purchasing power, by reducing and relieving unemploy- 
ment, by improving standards of labor, and by otherwise rehabili- 
tating industry. 

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

(c) The 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 tliat the continued participation of the Pulp and Paper 
Machinery Association 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) days from the 
effective date of this amendment. 
Respectfully, 

Hugh S. Johnsox. 

Administrator. 
June 29, 1934. 



AMENDMENT TO CODE OF FAIE COMPETITION FOR THE 
MACHINERY AND ALLIED PRODUCTS INDUSTRY 

Add the following paragraphs after the last numbered paragraph 
in Article II : 

43. ^'Gas-Powered Industrial Timck Manufacturing Suhdimsion " 
means the manufacture for sale of direct-gas-powered burden-bear- 
ing industrial trucks used in and around factories; mills; railroad^ 
marine, and air terminals; warehouses; and similar establishments; 
and direct-gas-powered industrial tractors for use in the foregoing 
places for towing, pushing, sweeping, cleaning, and for other simi- 
lar operations. Vehicles designed primarily for commercial or high- 
way work are not included in this definition. 

44. '"'' Mechanical Press Manufacturing Subdivision'''' means the 
manufacture for sale of mechanically power-driven presses with re- 
ciprocating slide or slides, and machinery (except machinery within 
the scope of another Code) used for the purpose of shearing, blank- 
ing, punching, stamping, embossing, forming, and drawing metal, 
hot or cold, and accessories, attachments and parts thereof produced 
by the manufacturers of the completed products of the Subdivision. 

45. " Multiple V-helt Drive Suhdivision " means the manufacture 
for sale of Multiple V-Belt Drives, and parts thereof, and includes 
all those engaged in such manufacture for sale. This includes belt 
manufacturers when merchandising complete drives or sheaves, but 
does not include the manufacturing of belts or merchandising only 
of the belt element of the Drive. 

46. " Pulp and Paper Machinery Subdivision " means the manufac- 
ture for sale of machinery and equipment used directly in the process- 
ing of pulp and paper in pulp mills, paper mills, and paper con- 
verting and processing establishments and/or specially designed parts 
therefor, except paper machines, beaters and jordans and any other 
machinery and equipment and/or parts thereof produced under the 
provisions of any other code of fair competition or any other sub- 
division of this Basic Code heretofore approved, and is intended to 
include all those engaged in such manufacture for sale. 

Approved Code No. 347— Amendment No. 4. 
Registry No. 1399-6.5. 

(360) 



Approved Code No. 161 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FUR DRESSING AND FUR DYEING INDUSTRY 

As Approved on June 30, 1934 



ORDER 



Approving Modifications of the Code of Fair Competition for the 
Fur Dressing and Fur Dyeing Industry 

An api^lication having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of modifications 
to the Code of Fair Competition for the Fur Dressing and Fur 
Dyeing Industry, and hearings having been duly held thereon and 
the annexed report on said modifications, 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. 0543-A, dated December 
30, 1933, and otherwise, do hereby incorporate, by reference, said 
annexed report and do find that said modifications and the Code as 
constituted after being modified comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said modifications 
be and they are hereby, approved, and that the previous approval of 
said Code is hereby modified to include an approval of said Code 
in its entirety as modified. 

The Administrator hereby reserves the right to take such action 
as he deems proper relative to certain other proposed amendments, 
submitted and heard together with those hereby approved. 

Hugh S. Johnson, 
Administrator^ for Industinal Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C.., 

June 30, 1931 

(361) 



ElPOKT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the modifications to the Code of Fair 
Competition for the Fur Dressing and Fur D,yeing Industry, on 
which a public hearing was held on April 27, 1934, 

The first modification definitely sets the hours in which each estab- 
lishment in the industry is permitted to operate. It thereby defi- 
nitely fixes a thirty-five-hour week in this industry and affords the 
Code Authority more opportunity to enforce the hour provisions of 
the code. 

The second modification protects the members of the Code Au- 
thoritv from legal action on a partnership theory. 

I find that : 

(a) The modification of said code and the code as modified are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act, including the removal of 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 the industry for the 
purpose of cooperative action of labor and management under ade- 
quate governmental sanction and supervision, by eliminating unfair 
competitive practices, by promoting the fullest possible utilization 
of the present productive capacity of industries, by avoiding undue 
restriction of j^roduction (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 modified 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. 

(c) The code empowers the Code Authority to present the afore- 
said modifications on behalf of the industry as a whole. 

(d) The modification and the code as modified are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The modification and the code as modified are not designed to 
and will not eliminate or oppress small enterprises and will not oper- 
ate 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 
modifications. 

For these reasons, these modifications have been approved. 



Respectfully, 
June 30, 1934. 



Hugh S. Johnson, 

A drmms trat or. 



(362) 



MODIFICATIOX TO CODE OF FAIT? COISIPETTTTON FOR 
THE FUR DRESSING .VXD FUR DYEING INDUSTRY 

1. A new section to be knoAvn as " Section 6, Article III " : 
Section 6. The hours or work in the Fancy Dressing and Rabbit 

Dressing Divisions of the industry shall be limited to the interim 
between 8 : 00 o'clock A.M. and 4 : 00 ox-lock P.M., with one hour 
a day for a luncheon period on Monday, Tuesday, Wednesday, 
Thursday, and Friday. 

No dressing work shall be done in these divisions at any other 
time except that — 

(a) Between the hours of 4:00 o'clock P.M. and 6:00 o'clock 
P.M. from Monday to Friday, inclusive, floor men shall be allowed 
to work in any establishment at pickling, sewing, hanging up of 
skins, or other preparatory Avork; but the number of floor men so 
allowed to work shall not exceed five percent of the total number 
of emploATes of any establishment except that any rabbit dressing 
establishment shall in any event be allowed a minimum of three 
workers, and an}- fancy dres;5ing establishment a minimum of two 
workers. 

(b) Preparatorj^ floor work shall also be permitted on Saturday 
from 8 : 00 o'clock A.M. to 12 : 00 o'clock noon, and on Sundays and 
legal holidays from 8 : 00 o'clock A.M. to 12 : 00 o'clock noon and 
from 1:00 o'clock P.M. to 6:00 ox-lock P.M., but the number of 
floor men so allowed to work shall not exceed five percent of the 
total number of employees of any establishment excejit that any 
rabbit dressing establishment shall in any event be allowed a mini- 
mum of three workers, and an}^ fancy dressing establishment a mini^ 
mum of two workers. 

(c) Notice of the number of floor men permitted in each estab-^ 
lishment shall be posted on the main door or a conspicuous bulletin 
board of each establishment. 

2. A new section to be known as " Section 9, Article VI ", to read 
as follows : 

Section 9. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor shall 
any member of the Code Authority be liable in any manner to any- 
one for any act of another member, officer, agent, or employee of the 
Code Authority. Nor shall any member of the Code Authority 
exercising reasonable diligence in the conduct of his duties here- 
under be liable to anyone for any action or omission to act under this 
Code, except for his own willful malfeasance, misfeasance, or non- 
feasance. 

Approved Code No. 161 — Amendment No. 1. 
Registry No. 911-28. 

(363) 



Approved Code No. 434 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

RIVER AND HARBOR IMPROVEMENT INDUSTRY 

As Approved on July 2, 1934 



ORDER 



Approving MoDiriCAnoN or Code of Fair Competition for the 
River and Harbor Improvemejstt 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 modifica- 
tion to a Code of Fair Competition for the River and Harbor Im- 
provement Industry, and due notice and opportunity to be heard 
having been given thereon and the annexed report on said modifica- 
tion, containing findings with respect thereto, having been made and 
directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Pres- 
ident, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate, by reference, said an- 
nexed report and do find that said modification and the Code as 
constituted after being modified comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said modification 
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 modified. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

July 2, WSJi,. 

76054—34 11 (365) 



REPOET TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on a modification of the Code of Fair Com- 
petition for the River and Harbor Improvement Industry which was 
approved by you on May 18, 1934. 

The effect of this amendment, modifying the definition of the 
River and Harbor Improvement Industry, will be to avoid conflict 
in and overlapping of work, as between the River and Harbor Im- 
provement Industry and sub-Chapter II-B of Chapter II of the 
Code of Fair Competition for the Construction Industry. 

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

I find that: 

(a) The modification of said Code and the Code as modified 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 ui labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue re- 
striction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as modified complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion subsection (a) of Section 3, subsection (a) of Section 7 and 
subsection (b) of Section 10 thereof. 

(c) The modification and the Code as modified are not designed to 
and will not permit monopolies or monopolistic practices. 

(d) The modification and the Code as modified are not designed 
and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons this modification has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator, 
July 2, 1934. 

(366) 



MODIFICATION OF CODE OF FAIE COMPETITION FOR 
THE RIVER AND HARBOR IMPROVEMENT INDUSTRY 

Ajiiend Section 1 of Article II so as to read as follows : 
Section 1. The term " River and Harbor Improvement Industry ", 
or '* The Industry ", as used herein means and includes each and all 
of the following operations, with respect to new projects, mainte- 
nance projects, or improvement projects (including the use and oper- 
ation of tugs and launches employed as tenders in connection 
therewith), when done principally by marine plant and the crews 
thereof : 

(a) Dredging; 

(b) Submarine rock removal, land reclamation by dredging, ma- 
rine and subaqueous work, in rivers, harbors, and waterwaj's; and 

(c) Such branches and subdivisions thereof as may be included 
hereunder with the approval of the President. 

Approved Code No. 434 — Amendment No. 1. 
Registry No. 161S-A-02. 

(367) 



Approved Code No. 265 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

COFFEE INDUSTRY 

As Approved on July 3, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Coffee 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 an amend- 
ment to'the Code of Fair Competition for the Coffee Industry, and 
opportunity to be heard having been afforded all members of said 
Industry and any objections filed having been duly considered, 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 Pres- 
ident, including Executive Order No. 6543-A, dated December 30, 
1933. and otherwise, do hereby incorporate, by reference, said an- 
nexed report and do find that said amendment and the Code as 
constituted after being amended comply in all respects with the per- 
tinent provisions and will promote the policy and purposes of said 
Title of said Act, and do hereby order that said amendment be, and 
it i^ hereby approved, and that the previous approval of said Code 
is hereby amended to include an approval of said Code in its en- 
tirety as amended. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Armin W. Riley, 

Division A dministrator. 

Washington. D.C, 

July 3, 1934. . 

(369) 



REPORT TO THE PRESIDENT 

The President. 

The White Rouse. 

Sir: This is a report on an amendment of Section 6 of Article 
VIII of the approved Code of Fair Competition for the Coffee 
Industry, number 265. This Code was approved by me on Feb- 
ruary 6, 1934. 

Pursuant to Executive Order No. 6678, dated April 14, 1934, the 
Code Authority for the Coffee Industry, in accordance with Sec- 
tion 2 of Article XI of said Code, having found it necessary in 
order to support the administration of this Code and to maintain 
standards of fair competition, established by this Code, and to 
effectuate the policies of the Act, has made application for an 
amendment of said Code in order to provide for a method of as- 
sessment and to support the expense of the administration of this 
Code. 

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

I find that: 

(a) The amendment to said code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for 
the general welfare by promoting the organization of the industry 
for the purpose of cooperative action of labor and management 
under adequate governmental sanction and supervision, by elim- 
inating unfair competitive practices, by promoting the fullest pos- 
sible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be 
temporarily required), by increasing the consumption of industrial 
and agricultural products through increasing purchasing power, 
by reducing and relieving unemployment, by improving standards 
of labor, and by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provision of said Title of said Act, including without limita- 
tion sub-section (a) of Section 3, sub-section (a) of Section T and 
sub-section (b) of Section 10 thereof. 

(c) The amendment and the Code as amended are not designed to 
and will not permit monopolies or monopolistic practices. 

(d) 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. 

(370) 



371 

(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 
amendment. 

In accordance with Executive Order No. 6678, dated April 14, 
1934, the amendment of this Code has been approved by me. 
Respectfully, 

Hugh S. Johnson-, 

Admiinistrator. 
July 3, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE COFFEE INDUSTRY 

Delete Section 6 of Article VIII, and insert in lieu thereof the 
following : 

1. It being found necessary in order to support the administra- 
tion of this Code and to maintain the standards of fair competition 
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 necessary 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the funds necessary 
to support such budget shall be contributed by members of the 
industry ; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable con- 
tribution 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. Each member of the industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Au- 
thority, determined as hereinabove provided, and subject to rules 
and regulations pertaining thereto issued by the Administrator. 
Only members of the industry complying with the code and con- 
tributing to the expenses of its administration as hereinabove pro- 
vided, shall be entitled to participate in the selection of members of 
the Code Authority or to receive the benefits of any 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; and no subsequent 
budget shall contain any deficiency item for expenditures in excess 
of prior budget estimates except those which the Administrator shall 
have so approved. 

Approved Code No. 265 — Amendment No. 1. 
Registry No. 111-1-01. 

(372) 



• Approved Code No. 287 — Amendment No. 6 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

GRAPHIC ARTS INDUSTRIES 

As Approved on July 3, 1934 



ORDER 



Modification of Code of Fair Com petition for the Graphic Artb 

Industries 

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 Appendix 
of the Playing Card National Product Group to the Code of Fair 
Competition for the Graphic Arts Industries, and hearings having 
been duly held thereon and the annexed report on said Appendix, 
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 Appendix complies in all respects with 
the pertinent provisions and will promote the policy ancl purposes 
of said Title of said Act; and do hereby order that said Appendix be 
and it is hereby approved, as a modification of said Code, and that 
the ])revious approval of said Code is hereby modified to include an 
approval of said Code in its entirety as modified. 

Hugh S. Johnson, 

Administrator. 

Approval recommended : 
George Buckley, 

Division Administrator. 

Washington, D.C, 

JuJ7j 3, 19.34. 

(373) 



KEPOET TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the proposed amendment to the Code of 
Fair Competition for the Graphic Arts Industries as approved by you 
on February IT, 1934. The proposed amendment is in the form of 
an Appendix to the Graphic Arts Code for the PLaying Card 
National Product Group (No. E-9). A Public Hearing was held on 
this proposed Appendix in the City of Washington on March 16, 
1934, and full opportunity was given to all interested parties to 
appear. 

The proposed Appendix consists of Administrative Provisions and 
Fair Trade Practice Provisions for the Playing Card National 
Product Group. 

The proposed Appendix represents an agreement by two conflicting 
interests of the industry, represented on the one hand by the United 
States Playing Card Company, which produces approximately sixty 
per cent (60%) of the total number of packs of playing cards sold 
in any fiscal year in the United States, and on the other, by the 
National Playing Card Association, which represents the remaining 
production of playing cards in the United States. Thus, the entire 
industry has agreed upon the provisions of the proposed Appendix. 

The proposed Appendix does not in any way affect the labor 
provisions of the Graphic Arts Code. 

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

I find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for 
the general welfare by promoting the organization of industry for 
the purpose of cooperative action among trade groups, by inducing 
and maintaining united action of labor and management under ade- 
quate governmental sanction and supervision, by eliminating unfair 
competitive practices, b}^ 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 prod- 
ucts, through increasing purchasing power, by reducing and reliev- 
ing unemployment, by improving standards of labor, and by other- 
wise rehabilitating industry. 

(374) 



375 

(b) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. The group submitting this 
fimendment was and is truly representative of the aforesaid industry. 
Tlie National Playing Card Association imposed and imposes no 
ijiequitable restrictions on admission to niembershii) therein. 

(c) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) 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. 

(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 amendment. 

I believe the amendment to be fair to labor, to the consumer, and 
to the industry, and for these reasons, therefore, I approve this 
amendment. 

Respectfully, 

Hugh S. Johnson, 

Achiiinistrator. 
July 3, 1934. 



MODIFICATION OF CODE OF FAIR COMPETITION FOR 
THE GRAPHIC ARTS INDUSTRIES 

APPENDIX OF NATIONAL PRODUCT GROUP NO. E-9 — PLAYING CARD8 

The provisions of this Appendix are applicable only to National 
Product Group No. E-9. 

Administrative Pro\t;sions 

(a) The Administrative agency for the Playing Cards National 
Product Group shall be elected in accordance with methods of pro- 
cedure to be approved by the Administrator, and shall be constituted 
as follows : 

1. Two (2) members shall be selected by an individual establish- 
ment or group of establishments whose sales represent fifty per cent 
(50%) or more of the total number of packs of playing cards sold 
in the preceding fiscal year in the United States. This percentage 
shall be determined from the records of the Internal Revenue De- 
partment's published reports on revenue stamps cancelled for the 
Government fiscal year. 

2. Two (2) members shall be selected by the other establishments 
in the Industry. 

3. Upon the request of any two (2) members of the administrative 
agency to the Coordinating Committee, the administrative agency 
shall submit a panel of four (4) nominees, from which the 
Coordinating Committee shall select one (1) to sit with the ad- 
ministrative agency as chairman in any proceeding for which the 
designation of such chairman has been requested, provided, that this 
shall not deprive any establishment of its right of appeal pursuant 
to the provisions of the Graphic Arts Code. 

(b) All proceedings of the administrative agency shall be in con- 
formity with the provisions of the by-laws of the administrative 
agency and with the provisions of this Code. 

Maintenance of Fair Competition 

(c) All playing cards shall be sold f.o.b. cars or equivalent. 

(d) The maximum cash discount: on shipments to all points east 
of Denver two per cent (2%) ten (10) days, net thirty (30) days. 
On shipments made to all points Denver and west, two per cent 
(2%) twenty (20) days, net forty-five (45) days, discount effective 
from date shipment leaves factory, which should be properly termed 
date of invoice, provided, however, the administrative agency may 
extend these periods in those cases where customers are located at a 
distance too great to check invoices in periods specified. 

(376) 



377 

(e) The administrative agency ni;iy adopt rules and regulations 
for the setting up of a bureau for the registration of exclusive de- 
signs or names, subject to the approval of the Administrator. 

(f) No provision of this Code relating to prices or terms of sell- 
ing, shipping or marketing, shall apply to export trade or sales or 
shii)ments for export trade. 

Approved Code No. 287 — Amendment No. G. 
Registry No. 599-33. 



Approved Code No. 332 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LADIES' HANDBAG INDUSTRY 

As Approved on July 3, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Ladies' Handbag Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Ladies' Handbag 
Industry, and hearings having been duly held thereon and the 
annexed report on said amendment, containing findings with respect 
thereto, ha\ang 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 eoio-A, dated December 30, 
1933, and otherwise, do hereby incorporate by reference, said 
annexed 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, such approval and such amendment to take 
effect fourteen (14) days from the date hereof, unless good cause 
to the contrary is shown to the x^dministrator before that time and 
the Administrator issues a subsequent order to that effect. 

Hi GH S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Sol a. Rosenblatt, 

Division Administrator. 

Washington, D.C, 

July S, 193Jf. 

(379) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Code Authority of the Ladies' Handbag Industry has 
made formal application to the Administration for an amendment 
to the Code of Fair Competition for said Industry providing for the 
mandatory collection of assessments for the purpose of financing the 
activities of the Code Authority. 

Under date of June 15, 1934, a Notice of Opportunity to be Heard 
was issued. By the terms of the said Notice, any criticisms of, 
objections to, or suggestions concerning said amendment, mi^ht be 
filed with Deputy Administrator, Dean G. Edwards prior to Thurs- 
day, June 28, 1934. No criticisms, objections or suggestions how- 
ever, have been received. 

FINDINGS 

The Deputy Administrator, in his final report to me on said 
amendment, 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 Na- 
tional Industrial Recovery Act, including the removal of obstructions 
to the free flow of interstate and foreign commerce which tend to 
dimish the amount thereof, and will provide for the general welfare 
by promoting the organization of industry for the purpose of co- 
operative action among trade groups, by inducing and maintaining 
action of labor and management under adequate governmental sanc- 
tion and supervision, by eliminating unfair competitive practices, 
by promoting the fullest possible utilization of the present productive 
capacity of industries by avoiding undue restriction of production 
(except as may be temporarily required), by increasing the consump- 
tion of industrial and agricultural products through increasing pur- 
chasing power by reducing and relieving unemployment, by improv- 
ing standards of labor, and by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provisi(>ns 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. 

(380) 



381 

(e) The ameiidmeiit ami the Code as amended are not designed to, 
and will not eliminate or oppress small enterprises and will not op- 
erate to discriminate against them. 

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

For these reasons this amendment lias been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
July 3, 1934. 



7(i(ir.4 34 12 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
LADIES' HANDBAG INDUSTRY 

The Code of Fair Competition for the Ladies' Handbag Industry- 
is hereby amended by striking out Sections 6 and 8 (f) of Article 
VI so that Section 7 of the Code as it now reads shall become Section 
6 and Section 8 of the Code as it now reads shall become Section 7 
and substituting the following for Section 8 (f). 

(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 hereunder and to effectuate the policy of the 
Act, the Code Authority is authorized : 

(a) To incure 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 
funcls 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 obtain equi- 
table contribution as above set forth by all members of the in- 
dustry, and to that end, if necessary, to institute legal proceed- 
ings 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 regula- 
tions 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, shall be 
entitled to participate in the selection of members of the Code 
Authority or to receive the benefits of any of its voluntary activities. 

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 bud- 
get shall contain any deficiency item for expenditures in excess of 
prior budget estimates except those which the Administrator shall 
have so approved. 

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

(382) 



Approved Code No. 218 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SLATE INDUSTRY 

As Approved on July 3, 1934 



ORDER 



Approving Modification of Code of Fair Competition for the Slate 

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 modiJEication 
to a Code of Fair Competition for the Slate Industry, and oppor- 
tunity to be heard having been duly afforded all interested parties 
and the annexed report on said modification, 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. 651:3-A, dated December 30, 
1933, and otherwise; do hereby incorporate, by reference, said an- 
nexed report and do find that said modification and the Code as 
constituted after being modified comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said modification 
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 modified. 

Hugh S. Johnson, 
Administrafor for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

D hvision A dmbvistrator. 

Washington, D.C, 

July 3, 193^. 

(383) 



REPOET TO THE PEESIDENT 

The President, 

The White House. 
Sir : Under the Code of Fair Competition for the Slate Industry, 
as approved on January 22, 1934, the Code Authority has submitted 
a modification to Article 7, Section 2, designed to empower the Code 
Authority to collect assessments from all members of the Industry 
to provide for the expenses of administering the Code. Under this 
modification, payment of such assessments will not be mandatory 
until the Code Authority has submitted and has had approved by the 
Administrator, a budget and plan of assessment. A provision of the 
modification forbids the Code Authority from making expenditures 
in excess of their approved budget. These provisions replace the 
former provisions for supporting the Code Authority through vol- 
untary payments. 

FINDINGS 

The Deputy Administrator in his final report to me on said modi- 
fication 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 modification of said code and the Code as modified are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free floAV 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 of labor and management under ade- 
quate governmental sanction and supervision, by eliminating unfair 
competitive practices, by promoting the fullest utilization of the 
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 modified complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion sub-section (a) of Section 3, sub-section (a) of Section 7 and 
sub-section (b) of Section 10 thereof. 

(c) The National Slate Association was and is an industrial asso- 
ciation truly representative of the aforesaid Industry and that said 
association imposed and imposes no inequitable restrictions on admis- 
sion to membership therein and consents to this modification. 

(d) The modification and the Code as modified are not designed 
to and will not permit monopolies or monopolistic practices. 

(384) 



385 

(e) The modification and the Code as modified are not designed 
to and will not eliminate or oppress small enterprises and will not 
•operate to discriminate against them. 

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

For these reasons, therefore. I have approved this modiiication. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 

Jttly 3, 1934. 



MODIFICATION TO CODE OF FAIE COMPETITION FOR 
THE SLATE INDUSTRY 

Modify Article VII. Section 2, by deleting paragraph (e) and 
substituting in lieu thereof the following: 

Article VII — Administration 

Section 2. paragraph (e). 

"(e) 1. It being found necessary in order to support the admin- 
istration of this code and to maintain the standards 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 necessary ; 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon wdiich 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 con- 
tributions 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) Each member of the industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Au- 
thority, determined as hereinabove provided, and subject to rules 
and regulations pertaining thereto issued by the Administrator. 
Only members of the industry complying with the Code and con- 
tributing to the expenses of its administration as hereinabove pro- 
vided, shall be entitled to participate in the selection of members 
of the Code Authority or to receive the benefits of any of its volun- 
tary 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 obliga- 
tion 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 ex- 
penditures in excess of prior budget estimates except those which 
the Administrator shall have so approved." 

Approved Code No. 218 — Amendiuent No. 1. 
Registry No. 102.3-19. 

(386) 



Approved Code No. 324 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

TEXTILE PRINT ROLLER ENGRAVING INDUSTRY 

As Approved on July 3, 1934 



ORDER 



An-RoviNij Amendment to Code of Fair Comi'Etition for the 
Textile Print Roller Engraving Industry 

An application having been duly made piusiiant 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 Print Roller 
Engraving Industry, and as contained in a Pul)lished Xotice of 
Opportunity to File Objections, xidministrative Order No. 324-3,' 
dated IVlay 22, 1934. and objections having been filed as provided in 
said Published Notice, and the annexed report on said amendment 
and said objections, containing findings with respect thereto, having 
been made and directed to the President, 

NOW. THEREFORE, on behalf of the President of the United 
States. I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order 6543-A, dated December 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 perti- 
nent 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 amended to include an approval of said Code in its entirety 
as amended, such approval and such amendment to take effect ten 
(10) days from the date hereof, unless good cause to the contrary 
is shown to the Administrator before that time and tlie Administra- 
tor issues a subsequent order to that effect. 

Hugh S. Johnson, 
Administrator for Inihistr'ial Recovery. 

Approval recommended : 
Barton W. Murray, 

Dhision Administrator. 

Washington, D.C, 

July 6, 193^. 

(387) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: An application has been duly made pursuant to and in full 
compliance Avith the provisions of the National Industrial Recovery 
Act for an Amendment to the Code of Fair Competition for the 
Textile Print Roller Engraving Industry, submitted by the Code 
Authority for the said Industry. 

The existing provision of Article VII, Section 1 (d) of the Code 
for said Industry is entirely inadequate in view of Executive Order 
No. 6678, dated' April 14, 1934, and Administrative Order X-36, 
dated May 26, 1934, and it is therefore evident that the proposed 
Amendment to Article VII, Section 1 (d) of said Code, the pro- 
visions of which are in accordance with the text of the above men- 
tioned Orders, will enable the Industry to secure the desired result. 

FINDINGS 

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

I find that : 

(a) The Amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act, including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and main- 
taining united action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fullest possible utilization of the 
present productive capacity of the industries, by avoiding undue re- 
strictions 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 un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

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

(c) The amendment and the Code as amended are not designed to 
and will not permit monopolies or monopolistic practices. 

(388) 



389 

(d) The amendment and the Code as amended are not designed 
to and Avill 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 
amendment. 

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

Hugh S. Johnson, 

Administrator. 

July 3, 1934. 



MODIFICATION TO CODE OF FAIR COMPETITION 
FOR THE TEXTILE PRINT ROLLER ENGRAVING 
INDUSTRY 

PURPOSE 

Pursuant to Article VII, Section 2 (d) of the Code of Fair Com- 
petition for the Textile Print Roller Engraving Industry duly 
approved by the President on March 8, 1934, and further to effec- 
tuate the policies of Title I of the National Industrial Recovery 
Act, the following modification is established as a part of said Code 
of Fair Competition and shall be binding upon every member of 
the Textile Print Roller Engraving Industry. 

MODIFICATION 

Delete entire Subsection (d) of Section 1 of Article VII and in- 
sert in lieu thereof the following new Subsections (d), (e), and (f). 

(d) It being found necessary in order to support the administra- 
tion of this Code and to maintain the standards of fair competition 
established hereunder and to effectuate the policy of the Act, the 
Code Authority is authorized: 

(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 which the funds necessary 
to support such budget shall be contributed by members of the 
Industry ; 

(3) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable con- 
tributions 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. 

(e) Each member of the Industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Au- 
thority, determined as hereinabove provided, and subject to rules 
and regidations pertaining thereto issued by the Administrator. 
Only members of the Industry complying with the Code and con- 
tributing to the expenses of its administration, as hereinabove pro- 
vided, shall be entitled to participate in the selection of members of 
the Code Authority or to receive the benefits of any of its voluntary 
activities or to make use of any emblem or insignia of the National 
Recovery Administration. 

(390) 



391 

(f) The Code Authority shall neither incur nor ])ay any obliga- 
tions in excess of the amount thereof -as estimated in its approved 
budiiet, except upon approval of the Administrator; and no subse- 
quent budget shall contain any deficiency item for expenditures in 
excess of prior budget estimates except those which the Adminis- 
trator shall have so approved. 

Approved Code No. 824 — Amendment No. 1. 
Recast ly No. 504-9-01. 



Approved Code No. 222 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CARD CLOTHING INDUSTRY 

As Approved on July 5, 1934 

ORDER 

Amendment to Code of Fair Competition for the Card Clothing 

Industry 

An application having been duly made pursuant to and in full com- 
pliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Card Clothing Industry, 
and as contained in a published Notice of Opportunity to File Ob- 
jections, Administrative Order No. 222-4, dated May 22. 1934. and 
no objections having been filed, as provided in said published Notice, 
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 Pres- 
ident, including Executive Order 6543-A, dated December 30, 1933, 
and otherwise, do hereby incorporate, by reference, said annexed 
report and do find that said amendment and the Code as constituted 
after being amended comply in all respects with the pertinent pro- 
visions 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 
amended to include an approval of said Code in its entirety as 
amended, such aproval and such amendment to take effect ten (10) 
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 : 
Barton W. Murray, 

D i'vJslo n- A dministrator. 

Washington, D.C, 

Juhj .5, 193Jf. 

(393) 



EEPORT 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 Card 
Clothing Industry, submitted by the Code Authority for the said 
Industry. 

The existing provision of Article VI, Section 4, of the Code for 
said Industrj^, is entirely inadequate in view of Executive Order 
6678, dated April 14, 1934, and Administrative Order X-36, dated 
May 26, 1934, and it is therefore evident that the proposed amend- 
ment to Article VI, Section 4, of said Code, the provisions of which 
are in accordance with the text of the above mentioned Orders, will 
enable the Industry to secure the desired result, 

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 : 

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 main- 
taining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of the industries, by avoiding undue 
restrictions of production (except as may be temporaril}^ required), 
by increasing the consumption of industrial and argricultural prod- 
ucts through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating inclustry. 

(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 amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(tl) The amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not oper- 
ate to discriminate against them. 

(394) 



395 

(e) Those eiigaoed in otlier 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 liave approved this amendment. 
Resi)ectfully, 

Hugh S. Johnson, 

Administrator. 
July o, 1934. 



MODIFICATION TO CODE OF FAIR COMPETITION FOR 
THE CARD CLOTHING INDUSTRY 

Purpose 

Pursuant to Article VI, Section 2 (d) of the Code of Fair Com- 
petition for the Card Clothing Industry duly approved by the Pres- 
ident on January 23, 1934, and further to effectuate the policies of 
Title I of the National Industrial Recovery Act, the following modi- 
fication is established as a part of said Code of Fair Competition and 
shall be binding upon every member of the Card Clothing Industry. 

Modification 

Delete entire Section 4 of Article VI and insert in lieu thereof the 
following new Sections, 4, 5, and 6. 

Section 4. It being found necessary in order to support the ad- 
ministration of this Code and to maintain the standards of fair 
competition 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 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 
Industiy ; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and obtain equitable con- 
tributions 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. 

Section 5. Each member of the Industry shall pay 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. 
Only members of the Industry complying with the Code and con- 
tributing to the expenses of its administration, as hereinabove 
j^rovided, shall be entitled to participate in the selection of member? 
of the Code Authority or to receive the benefits of any of its voluntary 
activities or to make use of any emblem or insignia of the National 
Recovery Administration. 

Section 6. The Code Authority shall neither incur nor pay any 
obligations in excess of the amount thereof as estimated in its 

(396) 



397 

approved budget, except upon approval of the Administrator; and 
no subsequent budget shall contain any deficiency item for expendi- 
tures in excess of prior budget estimates except those which the 
Administrator shall have so approved. 

Approved Code No. 222 — Amendment No. 1. 
Registry No. 1333-11. 



7G054— 34- 



Approved Code No. 188 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

VELVET INDUSTRY 

As Approved on July 5, 1934 



ORDER 



Modification of Code of Fair Competition for the Velvet 

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 the extension of the Code 
of Fair Competition for the Velvet Industry for the duration of the 
Act, and for the consequent amendment of the Code by striking out 
the second sentence of Article X, and hearings having been duly held 
tliereon, and the annexed report on said extension 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 
President, including Executive Order No. 6543-A. dated December 
30. 1933, and otherwise; do hereby incorporate by reference said 
mnexed report and do find that said extension and "amendment and 
:he Code as constituted after being amended comply in all respects 
mth the pertinent provisions, and will promote "the policy and 
Durposes of said Title of said Act, and do herebv order that said 
'xtension be granted, and that said amendment be" and it is hereby 
ipproved, and that the previous approval of said Code is hereby 
nodified to include an approval of said Code in its entirety as ex- 
ended and as amended, and do further order that all members of 
his Industry, as defined in article II of the Code, be governed by 
his Code alone as to their operations within this Industry. 

Hugh S. Johnson, 
Adviinistrator for Indnsfrial Recovery. 
Apf)roval recommended: I 

Robert L. Houston, " 

Division Administrator. 
Washington, D.C, 

July 5, 19S4. 

(399) 



KEPORT TO THE PRESIDENT 

The Presidekt, 

The White House. 

Sir: This is a report on the Hearing on an Amendment to the* 
Code of Fair Competition for the Velvet Industry, held in th^ 
Green Room of the Raleigh Hotel, on June 19, 1934. The Amend- ■ 
ment Avhich is attached was presented by the Code Authority. 

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

The purpose of the Hearing was to determine whether or not the 
Velvet Code should be continued beyond July 8, 1934. The letter, 
dated December 21, 1933, transmitting this Code to you for signa- 
ture states in part : 

" There was some question as to whether or not the Velvet Indus- 
try is entitled to operate under a separate Code. After hearing the 
evidence and the advice of the Industrial Adviser it was decided to 
permit the Industry to operate under this Code for a trial period of 
6 months. At the end of this time the question of a Code for this 
Industry will be reconsidered." 

It is recommended that this Code be continued in effect for the 
duration of the Act for the following reasons : 

1. Velvet is a fabric and is not characterized by any particular 
fibres so that it would be difficult to place this Industry under one 
of the basic Textile Codes. 

2. Although certain concerns in the Industry also operate under 
other Textile Codes, this has not, according to testimony at the 
Hearing, caused them any serious hardship. 

3. Concerns representing more than 95 per cent of the volume of 
the Industry appeared at the Hearing and requested that this Code 
be continued in effect. 

4. Because of the seasonable and highly speculative nature of the 
Velvet Industry it does not seem desirable to group it with any of 
the other Textile Industries. 

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 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 
Nati(mal Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general wel- 
fare by promoting the organization of Industry for the purpose oi 

(400) 



401 

cooperative action among trade groups, by inducing and maintaining 
united action of labor and management under adequate govern- 
mental sanction and supervision, by eliminating unfair competitive 
practices, by promoting the fullest possible utilization of the present 
productive capacity of industries, by avoiding undue restriction of 
production (except as may be temporarily rcHpiired), by increasing 
the consumption of industrial and agricultural ])roducts through 
increasing i)urchasing power, by reducing and relieving unem])loy- 
ment, by improving standards of labor, and by otherwise rehabili- 
tating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Secticm 8, 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 
oj^erate 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 the above reasons this Amendment has been approved by me. 

Hugh S. Johnson, 

A drninistrator. 
July 5, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE VELVET INDUSTRY 

Article X of the Velvet Code shall be amended by omitting the 
second sentence so that this Article as amended will read : 

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

Approved Code No. 188 — ^Amendment No. 1. 
Registry No. 281-1-01. 

(402) 



SUPPLEMENTS 



^ryimmj^^wib 



Approved Code No. 347 — Supplement No. 20 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

HOIST BUILDERS INDUSTRY 

As Approved on June 12, 1934 



ORDER 



Supplementary Code of Faik CoMPETinoN for the Hoist Builders 

Industry 

a division of the machinery and allied products industry 

An application having been cliilj' made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Supple- 
mental Code of Fair Competition for the Hoist Builders Subdivision 
of Machinery and Allied Products Industry, and hearings having 
been duly held thereon and the annexed report on said Supplemental 
Code, containing findings with respect thereto, having been made and 
directed to the President : 

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

(2) That the proviisons of Article VIII, Section (a) insofar as 
they prescribe a waiting period between the filing with the Code 
Authority (or such agency as may be designated in the Supple- 
mental 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. 

(2) That the provisions of the second paragraph of Article VIII, 
Section (d) be and they hereby are stayed pending the submission of 
satisfactory evidence concerning distribution of the products of the 
Subdivision to the Administrator. 

(403) 



404 

(3) That the provisions of Article IX, Sections 5 to 10 inclu- 
sive, be and they hereby are stayed for a period of fifteen (15) days, 
then to become" effective unless I, by my further order othervs^ise 
direct ; within which time cause may be shown, if any there be, why 
the above provisions should not become effective; and that the Tem- 
porary Code Authority send notice of the stay of these provisions 
and of the opportunity to show cause why they should not become 
effective to all known employers of the Subdivision. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
A. K. Glancy, 

Division AdTninistrator. 

Washington, D.C, 

June W, 193J^. 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This report relates to the Supplemental Code of Fair Compe- 
tition for the Hoist Builders Subdivision of Machinery and Allied 
Products Industry as proposed by the Hoist Builders Association. 

A public hearing- was held in Washington, D.C., on December 4, 
1933 and reconvened on December 21, 1933. The public hearings 
were conducted in accordance with the provisions of Title I of the 
National Industrial Recovery Act and all persons were given full 
opportunity to be heard. 

GENERAL STATEMENT 

The Hoist Builders Subdivision, being truly representative of the 
manufacturers of the products defined in Article II of this Supple- 
mental Code, has elected to formulate and submit a Supplemental 
Code of Fair Competition as provided in the second paragraph of 
Article I of the Code of Fair Competition for the Machinery and 
Allied Products Industry approved by you on the seventeenth day 
of March, 1934. 

The Subdivision includes the design, manufacture, contracting for 
and/or subletting the manufacturing for sale of hoists as specifically 
described in the definition of the Subdivision but does not include 
hoists commonly known as contractors hoists, slusher hoists, direct 
lift hoists, simple cylinder hoists, monorail hoists, trolly hoists, body 
and dump truck hoists. 

ECONOMIC EFFECT 

This Subdivision has been severely affected by the recent depres- 
sion. This is evidenced by the steady decline in annual sales since 
1929. Annual sales for 1932 were 90 per cent below the 1929 level, 
declining from $1,414,000 in 1929, to $135,000 in 1932. Invested 
capital has declined 2.7 per cent since 1929, while production capacity 
has remained constant. 

Employment in the Subdivision declined from 429 in 1929 to 
114 in 1932, or 73.3 per cent, and increased to 140 employees in 
1933, or 22.8 per cent over the 1932 level. 

The effects of the 40-hour provision with production at more nor- 
mal levels may be estimated on a basis of the 1930-31 average of 
total man-hours per week divided l)y the number of hours prescribed 
in the Code. After 1929, man-hours declined steadily from 22,760 to 
a minimum of 3,430 in 1932, or approximately 85 per cent. Man- 
hours for 1933 have increased to 7,980, or more than 100 per cent over 
the 1932 level. 

(405) 



406 

If it is assumed that the average man-hours for 1930-31 are repre- 
sentative of the vokime of production for those years, and a reason- 
able measure of man-hour requirements in a more normal period, 
the adoption of the 40-hour week would require a force of approxi- 
mately 260 employees, or about 60 per cent of the 1929 working level. 

Approximately 70 per cent of the workers in June, 1933 were 
working more than 40 hours per week. The average work week in 
October, 1933 was 35.3 hours. With production remaining at present 
levels, no increase in employment may be expected Avith the adoption 
of the 40-hour week. 

However, owing to the impossibility of all employees of the Sub- 
division working the maximum 40 hours, the average work week 
will be shorter, say 36 assumed effective hours, and the employment 
correspondingly greater, viz : 290 workers will be required to pro- 
duce the 1930-1931 volume. 

The minimum wage provisions proposed for the Subdivisions 
which are operating under the Code for the Machinery and Allied 
Products Industry are based on a flat minimum hourly rate of 32 
cents per hour for the South and the following city population dif- 
ferentials for all other sections of the United States : 

Over 50,000 population 40 cents per hour 

Over 10,000 to 50,000 population 38 cents per hour 

10,000 population and under 36 cents per hour 

In addition to the minimum wage rates shown above, the Code 
provides that women engaged in substantially the same work as men 
shall receive the same rate of pay as such men employees; that the 
minimum wage for women employees employed in plant operations 
shall not be less than 87.5 per cent of the proper rate for the locality 
in which employed as specified ; and that the minimum in the South 
shall be not less than 32 cents per hour. 

Estimated ynimher of factory workers receiving less than designated hourly rates 



Proposed minimum hourly rates 



40''<;eiits (other U.S.) 
SSjcents (other U.S.) 
36 cents (other U.S.) 
32'cents (South) 



Distribution of factory 
workers receiving les.s 
than the minimum re- 
gardless of location 



Approximate 
percent 




Approximate 
number 



Based on the distribution as of June 15, 1933 and on the specified 
percentages of the number of factory workers receiving less than 
the designated rates shown in the above table, the adoption of the 
proposed minimum rates will probably cause an increase in factory 
jjayrolls. The estimated increase as of June 15, 1933, regardless of 
location of the workers, will probably, under the most favorable 
conditions, not exceed 6.0 per cent assuming only upward adjustment 
in the brackets below the 40 cent minimum and no change in man- 
hour requirements. 



407 

Distribution of the number of factorv workers receiving classified 
rates in the specific areas are not avaihible. Consequently, it is only 
possible to estimate the approximate number of factory workers who 
will receive the benefit of the proposed minimum hourly rates, re- 
gardless of location, on the basis of the number of factory workers 
receiving less than the designated hourly rates as of June 15, 1933. 

RESUME OF SUPPLEMENTAL CODE 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines the products and specific terms ap- 
plicable to the Hoist Builders Subdivision as used in this Supple- 
mental Code. 

Article III provides for the adoption of the employment provi- 
sions of the National Industrial Recovery Code of the Machinery 
and Allied Products Industry, as approved by you, and as from time 
to time amended. 

Article IV provides for the adoption of Articles II, VI, VIII and 
IX of the National Industrial Recovery Code of the Machinery and 
Allied Products Industry, in accordance Avith the conditions in this 
Article governing their adoption. 

Article V establishes a Code Authority consisting of the Executive 
Committee of the Hoist Builders Association consisting of not less 
than four and not more than seven members and one additional 
member to be elected by employers not members of the Applicant. 
In addition to the members named above, the Administrator may, in 
his discretion, appoint one member without vote and without expense 
to this Subdivision. In addition to the organization of the Code 
Authority, the powers and duties thereof are also outlined in this 
Article. 

Article VI establishes a uniform accounting system and method of 
cost finding and/or estimating to be used by all employers in the 
Subdivision. 

Article VII provides that no products of the Subdivision shall be 
sold or offered for sale below a reasonable cost when the Code 
Authority determines that an emergency exists. 

Article VIII provides for methods of setting up, revising and 
filing price lists and discount sheets and terms of sale and payment. 

Article IX sets forth trade practices for the Subdivision. 

Article X, No provisions of this Supplemental Code relating to 
prices or terms of selling, shipping or marketing, shall apply to 
export trade or sales or shipments for export trade, as defined by 
the term " export " in this Article. 

Article XI. This Supplemental Code and all provisions thereof 
are made subject to the right of the President, in accordance with 
Subsection (b) of Section 10 of the Act, from time to time to cancel 
or modify any order, approval, license, rule, or regulation issued 
under said Act. Provision is also nuide that amendments, additions, 
levisions, or supplements prpposed by Code Authority may be sub- 
mitted from time to time for the approval of the Administrator. 

.Vrticle XII. No provision of this Supplemental Code shall be so 
api)lied as to permit monopolies, or monopolistic practices, or to 
eliminate, oppress, or discriminate against small enterprises. 



408 

Article XIII. This Supplemental Code shall become effective on 
the eleventh day after its approval by the Administrator. 

FINDINGS 

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

I find that : 

(a) Said Supplemental Code is well designed to promote the pol- 
icies and purposes of Title I of the National Industrial Eecovery 
Act, including removal of obstructions to the free flow of inter- 
state and foreign commerce which tend to diminish the amount 
thereof and will provide for the general welfare by promoting the 
organization of industry for the purpose of cooperative action 
among the trade groups, by inducing and maintaining united action 
of labor and management under adequate governmental sanctions 
and supervision, by eliminating unfair competitive practices, by 
promoting the fullest possible utilization of the present productive 
capacity of industries, by avoiding undue restriction of production 
(except as may be temporarily required), by increasing the consump- 
tion of industrial and agricultural products through increasing pur- 
chasing power, by reducing and relieving unemployment, by im- 
proving standards of labor, and by otherwise rehabilitating industry. 

(b) Said Subdivision normally employs not more than 50,000 
emploj^ees; and is not classified by me as a major industry. 

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

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

(e) The Supplemental Code is not designed to and will not elimi- 
nate or oppress small enterprises and will not operate to 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 
Supplemental Code. 

For these reasons, therefore, I have approved this Supplemental 
Code, provided that certain provisions relating to price publication, 
trade practices, and Article VIII, Section (e) are stayed, as stated 
in the Order. 

Kespectfully, 

Hugh S. Johnson, 

A dtninistrator. 
June 12, 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE HOIST BUILDERS INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

Article I — Purposes 

To effectuate the policy of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Supple- 
mental Code of Fair Competition for the Hoist Builders Subdivi- 
sion of the Machinery and Allied Products Industry, and together 
with the Code of Fair Competition for the Machinery and Allied 
Products Industry to which it is a Supplement shall be the standard 
of fair competition for this Subdivision, and shall be binding on 
each employer therein. 

Article II — Definition 

"Applicant " means the Hoist Builders Association, a trade organi- 
zation truly representative of this Subdivision, all members of which 
are engaged in the manufacture for sale of the products of the Hoist 
Builders Subdivision of the Machinery and Allied Products 
Industry. 

" Industry " means the Machinery and Allied Products Industry 
as defined in its Code of Fair Competition as approved by the Presi- 
dent, March 17, 1934, and as such definition may from time to time 
be amended. 

" Subdivision " means the Hoist Builders Subdivision of the Ma- 
chinery and Allied Products Industry as defined and set forth in 
Paragraph (13) of Article II of the Code of Fair Competition for 
the Machinery and Allied Products Industry as follows : 

" Hoist Builders Subdivision means the design, manufacture, con- 
tracting for and/or subletting the manufacturing for the sale of 
hoists operated by electricity, gas, oil, air or steam, for hoisting or 
hauling materials or men and for all industrial uses in which such 
type of hoists, commonly known as mine hoists are applicable, in- 
cluding spare, repair and replacement parts thereof, and includes all 
those so engaged; provided that the Subdivision shall not include 
those types of hoists, including spare, repair or replacement parts 
thereof, commonly known as contractors hoists, slusher hoists, direct 
lift hoists, simple cylinder hoists, monorail hoists, trolley hoists, 
body and dump truck hoists." 

" Code " means the Code of Fair Competition for the Machinery 
and Allied Products Industry, as approved by the President, and 
as from time to time amended. 

" Person " means a natural person, a partnership, a corporation, 
an association, a trust, a trustee, a trustee in bankruptcy, a receiver, 
or other entity. 

" Employer " means any person engaged in this Subdivision of 
the Industry, either on his own behalf or as an employer of labor. 

(409) 



410 

" Employee " means any one who is employed in the Subdivision 
by any such employer. 

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

" The President " means the President of the United States. 

" The Administrator " means the Administrator for Industrial 
Recovery. 

" Basic Code Authority " means the Code Authority for the 
Machinery and Allied Products Industry as constituted by the Code. 

" Code Authority " means the Code Authority constituted for this 
Subdivision as provided by the Code and by this Supplemental Code. 

" Group Code Authority " means the Code Authority for any group 
or classification of products within this Subdivision, constituted 
under the authority of Article V of this Supplemental Code. 

" Publish " means to make available to the public. 

" Principles " means all essential characteristics. 

Article III — Employment Provisions 

The following Articles of the Code, viz : Article III, " Working 
Hours " ; Article IV, " Wages " ; and Article V, " General Labor 
Provisions ", are hereby made a part of this Supplemental Code, 
with the same effect as if they were written into this Supplemental 
Code. 

Article IV — Adoption of Other Provisions or Code 

The following Articles of the Code, viz : Article II, " Definitions " ; 
Article VI, "Administration ", to the extent that they shall be 
applicable to this Supplemental Code as such or as it may hereafter 
be administered as an autonomous Code ; Article VIII, " Modifica- 
tions and Termination " ; and Article IX, " Withdrawal " are hereby 
made a part of this Supplemental Code with the same effect as if 
they were written into this Supplemental Code. 

Article V — Organization and Administration 

To administer and supervise, and facilitate the performance of the 
provisions of this Supplemental Code, there is hereby established 
a " Code Authority." 

(a) The Code Authority for this Subdivision shall consist of 

(1) The Executive Committee of the Hoist Builders Association, 
consisting of not less than four and not more than seven members. 

(2) One additional member to be elected in any fair manner, 
with the approval of the Administrator, by employers in this Sub- 
division not members of the Applicant, Avho are cooperating in this 
Supplemental Code, as described in Section (e) hereof, if so desired, 
by such non-members. 

(3) The Administrator may, at his discretion appoint one addi- 
tional member (without vote and without expense to the Sub- 
division). 

(b) Each trade or industrial association -directly or indirectly i3ar- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inocjuitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its ai'ticles of association, by- 
laws, regulations, and any amendments when made thereto, together 



411 

with such other information as to membership, organization, and 
activities as the Administrator may deem necessary to effectuate 
the purpose of the Act. 

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

The Code Authority nuiy adopt rules and regulations h)v its pro- 
cedure and employ such personnel as it nuiy deem necessary, 

(d) Any employer in this Subdivision shall be eligible for mem- 
bersliip in Hoist Builders Association. 

(e) An}' employer in this Subdivision shall be entitled to vote, 
subject to the provisions of Section (a) hereof, at the election of, and 
share in the benefits of the activities of the Code Authority, and 
may participate in any endeavors of the Code Authority, in the 
preparation of any revisions of, or additions or supplements to, this 
Supplemental Code, by paying his proper pro rata share of the rea- 
sonable cost of creating and administering it, as determined by the 
Code Authority, such vote of emploj-ers in this Subdivision to be 
determined subject to the provisions of Section (a) hereof, by a 
vote of employers who are at that time engaged in manufacturing 
such product, and are at that time cooperating in this Code, as above 
described in this Section (e) of this Article V, cast concurrently in 
each of the two following methods: (1) by one vote of each em- 
ployer. (2) By vote of employers weighted on the basis of one 
vote for each ii^lJ5,()()0 of sales booked of such product of said em- 
ployers who are at that time engaged in manufacturing such prod- 
ucts, made in the preceding five calendar years, as reported to the 
Code Authority of this Subdivision. Each employer shall be en- 
titled to at least one such vote. 

Except as otherwise provided in this Code any action taken at any 
meeting of employers shall be by a majority vote, cast and computed 
in each of the two methods hereinabove provided. 

(f) Employers in this Subdivision having a common interest and 
common problems, may be grouped by Code Authority for 
administrative purposes into various Group Subdivisions, or product 
classifications. 

In each Group Subdivision, or product classification, there may 
be a Group-Code Authority approved, or appointed, by Code 
Authority. 

(g) If formal complaint is made to Code Authority, that pro- 
visions of this Supplemental Code have been violated by any em- 
ployer, this Code Authority or proper Group-Code Authority, may 
cause such investigation or audit to be made, to the extent per- 
mitted by the Act. as may be deemed necessary. If such investiga- 
tion is made by Group-Code Authority, it shall report the results 
of such investigation or audit to Code Authority for action. 

Unless Basic Code Authority shall take jurisdiction, the Code 
Authority shall have the right to investigate to the extent permitted 

76054—34 14 



412 

by the Act, and analyze any transaction coming under the scope 
of this Supplemental Code, on which any unfair competition is 
alleged, to show evidence of any violation of this Supplemental 
Code, to report any such alleged violation to the proper author- 
ities for action. 

Article VI — Accounting and Costing I 

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

Article VII — Selling Below Reasonable Cost 

(a) Wlien the Code Authority has reason to believe that an emer- 
gency exists as to any product or products of the Subdivision, and 
that the cause thereof is destructive price-cutting such as to render 
ineffective or seriously endanger the purposes or the maintenance 
of the provisions of this Supplemental Code, the Code Authority 
may cause an investigation of costs and pricing to be made by an 
impartial agency in order to determine the existence of the emer- 
gency and the Code Authority may cause to be determined the low- 
est reasonable cost of the product or products of this Subdivision, 
such determination to be subject to such notice and hearing as the 
Administrator may require. The Administrator may approve, dis- 
approve, or modify the determination. Thereafter during the pe- 
riod of emergency, no employer of the Subdivision shall sell or offer 
to sell any product or products of the Subdivision for which the 
lowest reasonable cost has been determined at such prices or upon 
such terms or conditions of sale that the buyer will pay less therefor 
than the lowest reasonable cost of such products. 

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

Article VIII — Price Lists 

(a) If and when the Code Authority of this Subdivision determines 
that in any branch or group of the Subdivision it has been the gen- 
erally recognized practice to sell a specified product on the basis of 
net price lists, or price lists Avith discount sheets, and fixed terms of 
sale and payment, each employer shall, within ten (10) days after 
notice of such determination, file with the Code Authority a net 
price list, or a price list and discount sheet, as the case may be, indi- 
vidually prepared by him, showing his current prices, or prices and 
discounts, and terms of sale and payment, for such specified product, 
and the Code Authority shall immediately publish and send copies 
thereof to all known employer's who are cooperating in this Sup- 
plemental Code as described in Section (e) of Article V hereof. 



413 

Revised price lists and/or discount sheets and/or terms of sale 
and payment for such product may be filed from time to time there- 
after with the Code Authority by any employer, but such revised 
price lists and/or discount sheets and/or terms of sale and payment 
shall be filed with the Code Authority ten (10) days in advance of 
the effective date. Copies of such revised price lists and/or discount 
sheets and/or terms of sale and payment, for such product, with 
notice of the effective date specified, shall be immediately published 
and sent to all known employers who are cooperating in this Sup- 
plemental Code as described in Section (e) of Article V hereof, any 
of whom may file, if he so desires, to become effective upon the date 
when the revised price list and/or discount sheet and/or terms of 
sale and payment first filed shall go into effect, revisions of his price 
lists and/or discount sheets and/or terms of sale and payment estab- 
lishing prices or prices and discounts not lower or terms of sale and 
payment not more favorable than those established in the revised 
price lists and/or discount sheets and/or terms of sale and payment 
first filed. Nothing in the foregoing shall constitute a limitation 
upon the right of an}^ employer to file revised lists fixing his own 
prices, discounts and terms of sale and payment, which prices and 
discounts may be either more or less favorable than those contained 
in any other price list, to be effective as provided in the first sentence 
of this paragraph.^ 

(b) If and when the Code Authority shall determine that in any 
branch or group of the Subdivision not now selling its product on 
the basis of price lists, with or without discount sheets, with fixed 
terms of sale and payment, the distribution or marketing conditions 
in said branch or group are the same as, or similar to, the distribution 
or marketing conditions in a branch or group of the Subdivision 
where the use of price lists, with or without discount sheets, and 
fixed terms of sale and payment, is well recognized, and that a sys- 
tem of selling on net price lists or price lists and discount sheets 
with fixed terms of sale and payment for such product should be 
put into effect in such branch or group, then each employer of such 
branch or group shall within ten (10) days after notice of such de- 
termination, file with the Code Authority net price lists or price lists 
and discount sheets, containing fixed terms of sale and payment, 
showing his current prices and discounts and te^^ms of sale and pay- 
ment, and such price lists and/or discount sheets and/or terms of sale 
and payment may be thereafter revised in the manner hereinabove 
provided ; provided, however, that the Code Authority shall make 
no determination to place any product of the Subdivision (not now 
on a price list basis) on a price list basis, as provided in this para- 
graph (b) of Article VIII, unless the employers who are at that 
time engaged in manufacturing such product and are at that time 
cooperating in this Code, have given affirmative consent to such de- 
termination. The eligibility requirements, method, and effect of 
such voting shall be the same as provided in Section (e) of Article V. 

Each employer shall prepare and shall furnish the Code Authoritj'' 
for distribution with such number of copies of his price lists and/or 
discount sheets and terms of sale and pajmient as Code Authority may 
prescribe. 

' Sf>e paragraih 2 (1) of order approving this Code. 



4U 

(c) No employer shall sell directly or indirectly by any means 
whatsoever, any product of the Subdivision covered by provisions of 
this Article VIII at a price or at discounts, or on terms of sale and 
payment, different from those provided in his own current net price 
lists, or price lists and discount sheets, provided that nothing in the 
above shall prevent an employer from adding to his own price and/or 
price list and discount sheets by increasing his job price to include 
unusual selling, engineering, servicing, financing, financial risks, or 
other similar special charges, (except as provided in Article VII 
above), provided, however, that in the event of an employer quoting 
a higher price than the price published in his own price list and/or 
price list and discount sheets, to take care of unusual selling, en- 
gineering, servicing, financing, financial risks, or other similar special 
charges, he shall not subsequently quote a lower price on said pro- 
spective sale than that price first quoted, except in accordance with 
revised price lists dul}^ filed or unless he simultaneously eliminates 
part or all of the unusual engineering, servicing, financing, financial 
risks or other similar special charges, for which a corresponding 
reduction only may be made. 

(d) No employer shall sell to, or through any broker, jobber, 
commission account or sales agency, (this is known in the trade as 
" pooled buying "), Avho or which is in fact an agent for an organiza- 
tion of industrial consumers, with the result that any industrial con- 
sumer secures a discount, allowance or price other than the discount, 
allowance or price provided for in the employer's own current net 
price lists or price lists v\^ith discount sheets. 

No employer shall evade any provision of this Code by selling to 
or through any dealer, jobber, distributor or other selling agency 
which shall fail to agree to resell in accordance with the provisions 
of Articles VII, VIII, and IX of this Supplemental Code.- 

(e) Wherever by the provisions of this Article VIII an employer 
is or may be required to or permitted to file terms of sale and pay- 
ment, such terms shall mean usual or standard terms, and to cover 
any special and/or unusual terms definite formulae for determining 
such special and/or unusual terms shall be filed. 

(f) If and when Code Authority shall determine that it is un- 
desirable to continue the filing of net price lists and/or price lists 
with discount sheets and/or fixed terms of sale and payment on any 
product in respect of which such filing has heretofore been required, 
such filing shall cease and the provisions of this Article shall not 
apply to such product unless and until Code Authority shall again 
determine that such filing be made. 

Article IX ^ — Trade Practices 

Each of the following acts and practices is deemed to be inimical 
to the best interests of this Subdivision, and of the public, and each 
is, therefore, hereby declared to be, and to constitute, an unfair 
method of competition, viz : — 

1. The secret offering or making, to any customer, agent, fiduciary 
or representative of customer, of any payment or allowance of a 

= See paragJ'iUil] 2 (2) of order iiiiproviim' tliis Codo. 
'Sop para^'i'Midi '_' (;!) rf (ircU'r apin nviii^j; lliis ("(ulf. 



415 

rebate, refund, commission, credit, credit subsidy, unearned discount 
or excess allowance, whether in tlie form of money or otherwise, or 
any special service or privilege, for the purpose of infiuencin*;- a sale. 
No employer of the Subdivision shall <rive, permit to be given, or 
offer to give, anything of value for the purpose of influencing or 
rewarding the action of any employee, agent, or representative of 
another in relation to the business of the employer of such employee 
or the principal of such agent without the knowledge of such em- 
ployer or iDi'incipal, provided that no provision of this Code shall be 
construed to prohibit free and general distribution of articles com- 
monly used for advertising, except so far as such articles are actually 
used for commercial bribery as hereinabove defined. 

2. Any discrimination between purchasers, by the sale of any arti- 
cle having a published price, at any price other than the seller's 
published price, by means of direct or indirect price concessions, or 
by means of any privilege not extended to purchasers generally. 

3. Untruthfully advertising, representing, or marking any product, 
with intent to deceive or mislead. 

4. The publishing or circularizing of threat of any suit for in- 
fringement of patent or trade mark, or of any other legal proceedings, 
not in good faith, which would tend to harass a competitor or 
intimidate his customers. 

5. The taking in trade or accepting in trade any secondhand or 
old equipment in part payment for new, ])rovided, however, that this 
provision shall not be construed to prohibit in any way the return 
within six months of the date of shipment, to the Vendor and the 
allowance of any fair adjustment thereon by the Vendor of any prod- 
uct which shall not meet the purposes for which it was sold. Any 
employer may, however, assist in finding a bona fide buyer for said 
equipment, but shall in no case take any financial interest in it. 

6. So long as the maker of any product of this Subdivision bear- 
ing the maker's name or trade mark, which has required special 
designing, research or development expense (or his successor in busi- 
ness) continues to make and supply such spare, repair and replace- 
ment parts therefor, supplying repair parts for such product of this 
Subdivision unless (a) the name of the maker of such copied non- 
genuine repair parts shall be plainly marked on each part (or if this 
is impracticable on the package or tag) so that the ultimate user is 
clearly informed by marking on such parts, packages, tags and in 
catalogues, price lists, quoted prices, advertisements or advertising 
literature of the manufacturers of such copies non-genuine parts that 
said parts were not made by the original maker of the products of 
the employer of this Subdivision. 

7. The furnishing to any purchaser, and/or his agent, directly or 
indirectly of detailed shop drawings of the products of this Subdi- 
vision without filing a statement of such proposed transaction Avith 
the Code Authority which may approve or with the approval of the 
Administrator disapprove the transaction within ten (10) daj^s by 
written notice to the employer. 

8. Disseminating false or misleading information relative to com- 
petitor's products, selling prices, reputation, credit or financial 
standing, ability to perform work, or labor conditions. 



416 

9. Inducing or attempting to induce a breach or abandonment of 
contract covering the purchase or sale of the product of this Sub- 
division; provided, however, that nothing in this Section shall be 
construed to prohibit the attempt on the part of tlie owner of or 
licensee under any patent to induce a purchaser or future purchaser 
of any product which shall infringe said patent, to avoid such 
purchase. 

10. It shall be an unfair trade practice for any employer to engage 
in destructive price cutting. 

Article X — Sales for Export 

The provisions of this Supplemental Code concerning pricing and 
marketing (Articles VII, VIII and IX) shall not apply to direct 
export sales of any product. A similar exemption may be granted 
by the Code Authority of this Subdivision as to sales of any product 
destined ultimately for export. Unless otherwise determined by the 
Code Authority the term " export " shall include all shipments to 
all places without the several states of the United States and the 
District of Columbia; provided, however, that no shipment to any 
territory or possession of the United States shall be considered an 
export when any employer is engaged in the industry in such terri- 
tory or possession. 

Article XI — Modifications 

(a) As provided by Section 10 (b) of the Act, the President may 
from time to time cancel or modify any order, approval, license, rule 
or regulation issued under Title I of the Act. 

(b) Study of the trade practices of this Subdivision will be con- 
tinued by Code Authority, with the intention of submitting, from 
time to time, after its effective date, amendments or additions to, or 
revisions of, or supplements to, this Supplemental Code. 

Any such amendments, additions, revisions, or supplements, pro- 
posed by Code Authority, and approved by a vote of the employers 
shall be in full force and effect upon approval by the President. 
The eligibility requirements, method, and effect of such voting shall 
be the same as provided in Section (e) of Article V. 

Article XII — Monopolies 

The Supplemental Code presented by Applicant is not designed to 
promote monopoly, and shall not be so construed or applied as to 
oppress or eliminate small enterprises or discriminate against them, 
and is designed to effectuate the Policy of the Act. 

Article XIII — Effective Date 

This Supplemental Code shall become effective and binding on 
all persons engaged in this Subdivision on the eleventh day after its 
approval by the President. 

Approved Code No. 347 — Supplement No. 20. 
Registry No. 1399-49. 



Approved Code No. 347 — Supplement No. 19 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

HOISTING ENGINE MANUFACTURING INDUSTRY 

As Approved on June 12, 1934 



ORDER 



SUPPLEIVIENTARY CODE OF FaIR COMPETITION FOR THE HoiSTING EnGINE 

Manufacturing Industry 
A division of 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 a Supple- 
mental Code of Fair Competition for the Hoisting Engine Manu- 
facturing Subdivision of Machinery and Allied Products Industry, 
and hearings having been duly held thereon and the annexed report 
on said Supplemental 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 Supplemental Code complies in all 
respects with the pertinent provisions and will promote the policy and 
purposes of said Title of said Act; and do hereby order that said 
Supplemental Code of Fair Competition be and it is hereby approved 
subject to the condition that the provisions of Article VIII, Section 
(a), insofar as they prescribe a w^aiting period between the filing 
with the Code Authority (or suck agency as may be designated inr 
the Supplemental Code) and the effective date of price lists, as 
originally filed and/or revised price lists or revised terms and con- 
ditions of sale, be and they hereby are stayed pending my further 
order, 

Hugh S. Johnson, 
Administrator for Industrkil Recovery. 

Approval recommended : 
A. R. Glancy, 

Division Administrator. 

Washington, D. C, 

June 12, WSJf. 

(417) 



EEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on the Supplemental Code of Fair Competi- 
tion for the Hoisting Engine Manufacturing Subdivision of the 
Machinery and Allied Products Industry, public hearing having 
been conducted thereon in Washington, D.C., December 8, 1933, and 
reconvened December 21, 1933, in accordance with the provisions of 
Title I of the National Industrial Recovery Act. Every person 
who filed a request for an appearance was freely heard in public 
and all statutory and regulatory requirements were complied with. 

GENERAL STATEMENT 

The Hoisting Engine Manufacturers Association, being truly 
representative of this Subdivision of the Machinery and Allied Prod- 
ucts Industry, has elected to avail itself of the option of submitting 
a Supplemental Code of Fair Competition, as provided in paragraph 
(2), Article I of the Basic Code for the Machinery and Allied Prod- 
ucts Industry approved by you on the seventeenth day of March, 
1934. 

This Subdivision represents a part of the capital goods industry, 
manufacturing and selling power-operated hoisting and winding en- 
gines such as are used in construction work, sand and gravel opera- 
tions, logging and dredging and special modifications thereof, in- 
cluding aciiessory equipment used therewith such as derricks, whirlers 
and cableways, and spare, repair and replacement parts thereof, but' 
not including the type commonly known as mine hoists. ' ' 

ECONOMIC EFFECT 

No estimate of the total employment is available, but it has been 
assumed that the trend reflected by Summarized questionnaire returns 
from fourteen establishments is representative of the rate of decline 
in employment for this Subdivision of the Industry as a whole. 

This subdivision of the Industry is still suffering from the effects 
of the depression. Annual sales decreased approximately 82 per cent 
and employment appro^^imately 63 per cent from 1929 to 1932. 

Approximately 50 per cent of the employees in June, 1933, were 
working more than 40 hours per week and 14 per cent were receiving 
less than 40 cents per hour with the minimum wage ranging between 
25 and 30 cents. 

From the statistics available, the average work-week in 1929 
amounted to 52.2 hours, decreasing to an average of 35.4 hours per 
week for the first six months of 1933. 

(418) 



419 

The inininiuin hourly rates in the approved Basic Code consist 
of one differential for'the South and three city popuhition differ- 
entials for all other sections of the United States, as follows: 

Over oO.OtK) population 40^ per hour 

Over 10,000-50,000 population 38^ per hour 

10,000 population and under 30";' per hour 

South 32<i per horn- 
In addition to the minimum wage rates shown above, the Basic 
Code provides that women engaged in substantially the same work 
as men shall receive the same rate of pay as such men employees; 
that the minimum wage for women employees engaged in plant 
operations shall be not less than 87.5 per cent of the proper rate for 
the locality in which employed as specified; and that the minimum 
in the South shall not be less than 32 cents per hour. 

Based on the distribution as of June 15, 1933, and on the specified 
percentages of the number of workers receiving less than the desig- 
nated rates as shown in the table below, the adoption of the proposed 
minimum rates will probably cause an increase in factory payrolls. 
The estimated increase as of June 15, 1933, regardless of location 
of the workers, will probably, under the most favorable conditions, 
not exceed 1.5 per cent assuming only upward adjustment in the 
brackets below the 40 cent minmium and no change in man-hour 
requirements. 

Estimated number of factory icorkers receicmg less than designated hourly rates 



Minimum hourly rates 



40 cents (other U..?.) 
ascents (other U.S.) 
36 cents (other U.S.) 
32 cents (South) 



Distribution of factory- 
workers receiving less 
than the minimum re- 
gardless of location 




RESUME t)r THE SUPPLEMENTAL CODE 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines specific terms employed in this Sup- 
plemental Code. 

Article III. The labor provisions of the Basic Code for the Ma- 
chinery and Allied Products Industry as approved March 17, 1934, 
are incorporated by reference as the labor provisions of this Supple- 
mental Code. 

Article IV ado])ts the relevant portions of Article VI, "Adminis- 
tration "; and Articles VIII, " Modifications and Termination ", and 
IX, " Withdrawal " of the Basic Code for the Machinery and Allied 
Products Industry, as approved March 17, 1934. 

Article V establishes a Code Authority consisting of four members. 
One additional member may be elected from the nonmembers of the 
applicant association if so desired by such nonmembers. The Ad- 



420 

ministrator in his discretion ma}^ appoint one additional member 
(without vote and without expense to the Subdivision). Together 
with the applicable provisions of the Basic Code, mechanism is 
provided for the administration of this Supplemental Code. 

Article VI provides for an accounting system and methods of 
cost finding and for estimating. 

Article VII provides for the determination of a lowest reasonable 
cost during an emergency caused by destructive price-cutting and 
provides exceptions thereto as regards distress stocks and on products 
of similar design and imports. 

Article VIII provides for methods of setting up, revising and 
filing price lists and discount sheets and terms of sale and payment. 

Article IX provides certain standards as to prices, terms and con- 
ditions of payment, peculiar to this Subdivision, with a view of 
eliminating unfair competition in this Subdivision. 

Article X sets forth the unfair trade practices which have been 
especially designed to effect fair competition in this Subdivision. 

Article XI defines export territory and provides that filed price 
lists are not applicable to export shipments. 

Article XII contains the mandatory provisions contained in Sec- 
tion 10 (b) of the Act and also provides for the submission of pro- 
posed amendments to the Supplemental Code. 

Article XIII provides for the withdrawal of this Subdivision from 
jurisdiction of the Basic Code and for the continued functioning of 
this Subdivision as an individual industry under its own code. 

Article XIV stipulates that there shall be no inequitable restric- 
tions and provides against monopolies. 

Article XV gives the effective date of this Supplemental Code. 

FINDINGS 

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

I find that : 

(a) Said Supplemental Code is well designed to promote the poli- 
cies and purposes of Title I of the National Industrial Recovery Act, 
including removal of obstructions to the free flow of interstate and 
foreign commerce which tend to diminish the amount thereof and 
will provide for the general welfare by promoting the organization 
of industry for the purpose of cooperative action among the trade 
groups by inducing and maintaining united action of labor and man- 
agement 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 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 Subdivision normally employs not more than 50,000 em- 
ployees, and is not classified by me as a major industry. 



421 

(c) The Supplemental Code as approved complies in all respects 
with the pertinent provisions of said Title of said xVct, including 
without limitation Subsection (a) of Section 3, Subsection (a) of 
Section 7, and Subsection (b) of Section 10 thereof; and that the 
applicant association is an industrial association trul}'^ representative 
of the aforesaid subdivision of the industry; and that said associa- 
tion imposes no inequitable restrictions on admission to membership 
therein. 

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

(e) The Supplemental Code is not designed to and will not elimi- 
nate or oppress small enterprises and will not operate to 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 
Supplemental Code. 

For these reasons, therefore, I have approved this Supplemental 
Code, provided that certain provisions relating to price publication 
are stayed as stated in the order. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
June 12, 1934 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE HOISTING ENGINE MANUFACTURING INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS 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 Supple- 
mental Code for the Hoisting Engine Manufacturing Subdivision of 
the Machinery and Allied Products Industry, and together with the 
Code of Fair Competition of Machinery and Allied Products In- 
dustry shall be the standard of fair competition for this subdivision, 
and shall be binding on every employer therein. 

Article II — Definitions 

"Applicant " means the Hoisting Engine Manufacturer's Associa- 
tion, a trade organization, which organization is truly representative 
of this subdivision, all members of which are engaged in the manu- 
facture for sale of the products of the Hoisting Engine Manufactur- 
ing Subdivision of the Machinery and Allied Products Industry. 

" Industry " means the Machinery and Allied Products Industry, 
as defined in its National Industrial Recovery Code as approved by 
the President, and as such definition may from time to time be 
amended. 

" Subdivision " means this Hoisting Engine Manufacturers sub- 
division of the Machinery and Allied Products Industry as defined 
and set forth in Paragraph fourteen of Article II of the National 
Industrial Recovery Code of the Machinery and Allied Products 
Industry as follows : 

Hoisting Engine Manufacturing Subdivision means the manufac- 
ture for sale of power-operated hoisting or winding engines such as 
are used in construction work, sand and gravel operations, logging, 
and dredging, and special modifications thereof, including accessory 
equipment used therewith such as derricks, whirlers, and cableways, 
and spare, repair and replacement parts thereof, but not including 
the type commonly known as mine hoists, and includes all those en- 
gaged in such manufacture for sale. 

The foregoing Definition shall not permit the manufacture for 
sale under this Supplemental Code of electrical products included 
within the scope of the Electrical Manufacturing Industry as de- 
fined in the Code of Fair Competition for said Industry, except 
where such electrical products are sold as a part of the products 
of this Subdivision and are not sold as separate electrical products 
in competition with similar products included within the scope of the 
Electrical Manufacturing Industry as defined in the Code of Fair 

(422) 



423 

C'onii'Otition for said industry; pi-ovided, however, that any em- 
jdoycr hereunder may manufacture and sell under this Supplemental 
Code any spare and/or replacement parts of any such electrical 
products for use with products defined hereunder, which were 
originally manufactured and sold by him. 

When carried on at the point of installation, the work of install- 
ing, erecting, rebuilding and/or servicing of the products of the 
Subdivision, (including attachments, accessories and/or replacement 
and repair parts therefor, included within the definition of the 
Subdivision) shall be subject to the provisions of this Supplemental 
Code, only when performed by the employer hereunder selling such 
products or by a company affiliated therewith. 

'' Code " means the National Industrial llecovery Code of the 
Machinery and Allied Products Industry, as approved by the Presi- 
dent, March IT, 1934, and as from time to time amended. 

'* Person " means a natural person, a partnership, a corporation, 
an association, a trust, a trustee, a trustee in bankruptcy, a receiver, 
or other entity." 

'• Employer " means any person engaged in the Subdivision either 
on his own behalf or as an employer of labor. 

" Employee " means any one who is employed in the subdivision 
by any such employer. 
' " The Act " means Title I of the National Industrial Recovery 
Act. 

" The President "' means the President of the United States. 

" The Administrator " means the Administrator for Industrial 
llecovery. 

" Basic Code Authority " means the Code Authority for the Ma- 
chinery and Allied Products Industry as constituted by the Code. 

" Code Authority " means the Code Authority constituted for 
this Subdivision as provided bv the Code and by this Supplemental 
Code. 

" Group Code Authority " means the Code Authority for any 
group or product classification within this Subdivision. 

" Publish " means to make available to the public. 

'' New Products " shall mean a machine or attachment which has 
not previously been sold and placed in the possession of a purchaser, 
nor rented or used as a demonstrator prior to the approval of this 
Supplemental Code. 

Article III — Employment Proatsigns 

The following Articles of the Code, viz ; Article III, " Working 
Hours"; Article IV, "Wages"; and Article V, "General Labor 
Provisions ", are hereby made a part of this Supjilemental Code, with 
the same effect as if they were written into this Supplemental Code. 

Article IV — Adoption or Other Provisions of Coue 

The following Articles of the Code, viz; Article VI, "Administra- 
tion ", to the extent that it shall be applicable to the administration 
of this Supplemental Code as such or as it may hereafter be ad- 
ministered as an autonomous Code ; Article VIII, " Modifications 



424 

and Termination " ; and Article IX " Withdrawal ", are hereby 
adopted and made a part of this Supplemental Code with the same 
effect as if they were written into this Supplemental Code. 

Article V — Administration 

(a) The Code Authority for this Subdivision shall consist of: 

(1) The Executive Committee of Applicant, consisting of four 
members. 

(2) One additional member may be elected in any fair manner 
with the approval of the Administrator, by cooperating employers 
in this Subdivision not members of the Applicant, if so desired by 
such non -members. 

(3) The Administrator, in his discretion, may appoint one ad- 
ditional member (without vote and without expense to the 
Subdivision.) 

Any vacancy on the Code Authority due to death, resignation, or 
because a member thereof has ceased to be connected with this Sub- 
division shall be filled at a meeting of employers called by the Code 
Authority on at least ten days' notice by registered mail sent to all 
employers in this Subdivision, and in a manner similar to the manner 
in which the retired member was originally selected. 

(b) Any employer in this Subdivision shall be eligible for mem- 
bership in Applicant. 

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

Action by employers in any Subdivision meeting for the adoption 
of procedural rules, revisions or additions to this Supplemental 
Code, or the transaction of other business of the Subdivision shall be 
by vote of employers entitled to vote as provided in this Article V, 
who are present in person or by proxy duly executed and filed with 
Code Authority. Any such action taken at any meeting of em- 
ployers shall be by majority vote cast and computed on the basis of 
one vote for each employer, unless otherwise provided in this Sup- 
plemental Code. 

(d) Any employer in this Subdivision shall be entitled to vote at 
the election of (subject to Section (a) hereof) and share in the 
benefits of the activities of the Code Authority and may participate 
in any endeavors of the Code Authority in the preparation of any 
revisions of, or additions or supplements to this bupplemental Code 
by pa3dng his proper pro-rata share of the reasonable cost of adminis- 
tering it, as determined by the Code Authority. 

(e) If formal complaint is made to Code Authority, that provi- 
sions of this Sup]3lemental Code have been violated by any employer, 
the Code Authority may, to the extent permitted by the Act. cause 
such investigation or audit to be made, as ma}' be deemed necessary. 



425 

Article VI — Accountixg and Costing 

The Code Authority shall cause to be formulated an accounting 
-vsteni and methods of cost lindin^- and/or estimating capable of 
use by all employers in the Subdivision. After such system and 
methods have lieen formulated, full details concerning tliem shall be 
made available to all employers. Thereafter all employers shall 
determine and/or estimate costs in accordance with the principles of 
such methods. 

Article VII — Selling Below Reasonable Cost 

(a) When the Code Authority determines that an emergency exists 
n this Subdivision and that the cause thereof is destructive price- 
cutting such as to render ineffective or seriously endanger the mainte- 
nance of the provisions of this Supplemental Code, the Code Author- 
ity may cause to be determined the lowest reasonable cost of the prod- 
ucts of this Subdivision, such determination to be subject to such 
notice and hearing as the Administrator may require. The Admin- 
istrator may approve, disapprove, or modify the determination. 
Thereafter, during the period of the emergency, it shall be an unfair 
trade practice for any employer of the Subdivision to sell or offer 
to sell any product of the Subdivision for which the lowest reasonable 
cost has been determined, at such prices or upon such terms or condi- 
tions of sale that the buyer will pay less therefor than the lowest 
reasonable cost of such products. 

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

(b) The foregoing Section (a) shall not apply to (1) dropped 
lines, or (a) seconds, or (3) inventories which must be converted 
into cash to meet emergency needs, all of which may be disposed of 
by any employer at any price and on any terms or conditions, but 
only if such employer, not less than two weeks before such proposed 
disposal, has filed with Code Authority a statement in writing 
setting forth the facts of, and reasons for, such proposed disposal 
and the price and terms and conditions of sale, and Code Authority 
has not, with the approval of the Administrator, before the termina- 
tion of such two week period, in writing, disapproved the proposed 
disposal. Notice of such disposal, if not disapproved, shall be sent 
immediately to all employers manufacturing products of equivalent 
design, character, quality or specifications, and participating in this 
;Supplemental Code as described in Article V, Section (d). Avho may 
-cU such products at prices and on terms and conditions as favor- 
able as those stipulated in the proposed disposal. 

^ (c) When prices of competing products manufactured outside the 
United States are lower than the established lowest reasonable cost, 
any employer may sell at prices and on terms and conditions as 
favorable as those of the competing foreign product. 



426 
Article VIII — Price Lists 

(a) If and when the Code Authority determmes that in any group 
of the Subdivision it has been the generally recognized practice to 
sell a specified product on the basis of printed net price lists, or 
price lists with discount sheets, and fixed terms of sale and pay- 
ment, each employer shall, within ten days after notice of such 
determination, file with the Code Authority a net price list, or a 
price list with discount sheet, as the case may be, individually pre- 
pared by him, showing his current prices, or prices and discounts, 
shipping weights, and terms of sale, and payment and the Code 
Authority shall immediately publish and send copies thereof to all 
employers who are cooperating under this Supplemental Code. 

Revised price lists and discount sheets and terms of sale and 
payment may be filed from time to time thereafter with the Code 
Authority by any manufacturer of such product, to become operative 
upon the date specified therein, but such revised price lists and dis- 
count sheets and terms of sale and payment shall be filed with the 
Code Authority not less than ten days in advance of the effective 
date. Copies thereof, with notice of the effective date specified, shall 
be immediately published and sent to all known manufacturers of 
such product, who are cooperating under this Supplemental Code, 
any of whom maj^ file, if he so desires, revisions of his price lists and 
discount slieets and terms of sale and payment, which shall become 
effective upon tlie date when the revised price list and discount sheets 
and terms of sale and payment first filed shall go into effect.^ 

(b) If and when the Code Authority shall determine that in any 
group of the Subdivision not now selling its product on the basis 
of price lists, with or without discount sheets, with fixed terms of 
sale and payment, the distribution or marketing conditions in the 
group are the same as, or similar to, the distribution or marketing 
conditions in a group where the use of price lists, with or without 
discount sheets, and fixed terms of sale and payment is well recog- 
nized, and that a system of selling on net price lists or price lists 
and discount sheets with fixed terms of sale and payment should be 
put into effect in such group, then each manufacturer of the product 
or products of such group shall within twenty days after notice of 
such determination, file with the Code Authority net price lists or 
price lists and discount sheets, with fixed terms of sale and payment, 
showing his current prices and discounts and terms of sale and pay- 
ment, and such price lists and discount sheets and terms of sale 
and payment may be thereafter revised in the manner hereinbefore 
provided. Provided that Code Authority shall make no determina- 
tion, to place any product of the Subdivision (not now on a price 
list basis) on a price list basis, as provided in this paragraph (b) of 
Article VIII unless affirmative consent to such determination is 
given by a 66%% vote of employers who are cooperating under this 
Supplemental Code and who are at that time engaged in manufac- 
turing such products. 

(c) No employer shall sell directly or indirectly by any means 
whatsoever, any product of the Subdivision covered by provisions 

' St'o i)ara;;raph 2 of (u-iIit approvinj; this Cod(?. 



427 

of this Article VIII at a price or at discounts, or on terms of sale 
and payment different from those provided in his own current net 
price lists, or price lists and discount sheets, and terms of sale and 
pajanent. 

Article IX — Prices, Terms and Conditions or Payment 

(a) Any ])lace at which a manufacturing plant producing a prod- 
uct of this Subdivision is estal)lished may be used as a place from 
which the freight shall be added to the filed price of the product, 
provided that the emjiloyer specifies such place or places in his 
published price list. All prices and quotations made by an employer 
shall be F.O.B. such specified place or places. 

(b) New machines or attachments shall be sold only under firm 
sales contracts or firm purchase orders, and such contracts or orders 
shall ])rovide for shipment within six months of the date the con- 
tract or order is signed by the purchaser. 

(c) When sales of a new product are made on a net cash basis, and 
no cash discount is involved, the contract of sale shall provide that 
full pajnnent in cash or negotiable check be made by purchaser 
within thirty days from the date of shipment. When, however, full 
payment is made within ten days from date of shipment, a cash dis- 
count of not to exceed five percent (5%) of the F.O.B. price may be 
allowed. 

(d) In the case of sale of a ncAv product to an ultimate consumer 
on deferred payment terms, a cash payment of not less than twenty- 
five percent of the total sales price must be required, and the unpaid 
balance of the purchase price shall be made payable in equal monthly 
installments, the first installment to be payable in not more than 
thirty days, and the last installment to be payable in not more than 
nine months from the date of shipment. All installments shall be 
evidenced by notes bearing date of the day of shipment, and draw- 
ing interest at not less than six percent per annum therefrom unless 
the laws of the particular State governing the contract stipulate 
otherwise as to interest rate chargeable. 

(e) All contracts for the sale of a new product shall require the 
payment in lawful money of the full current price of such product. 

(f ) In the sale of a new product, no express guaranty of materials 
and workmanship shall be made to be effective beyond tAvelve months 
after date of shipment. 

(g) Employer's guarantee of performance for any machine shall 
be limited to an agreement to duplicate performance claimed in his 
published literature using uniform methods for testing prescribed 
by the Code Autliority and approved by the Administrator. No sale 
of a new product shall be made subject to acceptance after a trial 
or demonstration on the purchaser's job, except that in the case of the 
first new product of any distinctly new type or size, with neAV model 
designation, if no product of the same type and size has previously 
been sold, or in any case where a product may be sold to be employed 
for a distinctly recognized new use. any employer may include in 
the contract of sale a provision permitting rescission of the contract 
by the customer within ninety (90) days from date of shipment. 

76054—34 15 



428 

(h) No employer shall sell his product on any but the unit price 
basis. 

(i) No employer of the Subdivision shall require that the purchase 
or lease of any products of the Subdivision be a prei'equisite to the 
purchase or lease of any other products. 

Article X — Unfair Practices 

Each of the following acts and practices is deemed to be inimical 
to the best interest of the Subdivision, and of the public and each is, 
therefore, hereby declared to be, and to constitute, an unfair method 
of competition and is hereby prohibited ; viz : 

1. The secret payment or allowance of a rebate, refund, commis- 
sion, credit, unearned discount, or excess allowance in the form of 
mone}' or otherwise, or the offering or extending to any customer 
any special service or privilege not extended to all customers of the 
same class, for the purpose of influencing the sale. 

2". The payment, or promise to pay to any agent, fiduciary, or 
representative, of money or valuable thing, with or without the 
knowledge of his principal, for the purpose 'of influencing any sale 
to his principal. This provision shall not be construed to prohibit 
free and general distribution of articles commonly used for advertis- 
ing, except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

3. Anj'^ discrimination between purchasers of the same class, by 
the sale of any article having a published price, at any price below 
the seller's published price, by means of direct or indirect price con- 
cessions, or by means of any privilege not extended to such pur- 
chasers generally. 

4. No employer of the Subdivision shall publish advertising 
(whether printed, radio, display, or of any other nature), which is 
misleading or inaccurate in any material particular, nor shall any 
employer 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. 

5. The publishing or circularizing of threats of suits for infringe- 
ment of patents or trademarks, or of an}' other legal proceedings, not 
in good faith, which would tend to harass competitors or intimidate 
their customers. 

6. The renting of any new product where the object is to convert 
the transaction into a sale, provided however that this Section (6) 
shall not prevent the renting of products of the Subdivision on Bail- 
ment leases in those states where such transactions are legally 
recognized. 

7. The engaging in destructive price-cutting by any employer in 
this Subdivision. 

Article XI — Sales for Export 

The provisions of this Supplemental Code concerning pricing and 
marketing are not to apply to direct export sales of any product. A 



429 

similar exemption may be irranted by the Code Authority as to sales 
of any product destined ultimately for export. Unless otherwise 
determined by the Code Authority, the term " export "' shall include 
shipments to all places without the several states of the United States 
and the District of Columbia; provided, however, that no shipment 
to an}^ territory or possession of the United States shall be consid- 
ered an export when any employer is engaged in the Subdivision in 
such territory' or possession. 

Article XII — jModifications 

(a) As provided by Section 10 (b) of the Act. the President 
may from time to time cancel or modify an}- order, approval, 
license, rule or regulation issued under Title I of the Act. 

(b) An}^ amendments, additions, revisions, or supplements of this 
Supplemental Code, proposed by Code Authority, and approved 
by a seventy-five percent vote of the cooperating employers, shall 
be in full force and effect upon approval by the Administrator. 
The eligibility requirements, method, and effect of such voting shall 
be the same as provided by Article V, hereof. 

Article XIII — Withdrawal 

Upon thirty (30) days' notice to Basic Code Authority and to 
the Administrator, this Subdivision may. upon the affirmative vote 
of not less than 66%% of the employers within the Subdivision with- 
draw from the jurisdiction of Basic Code Authority. The eligi- 
biliity of voters and the method and effect of such voting shall be 
in accordance with the provisions of Article V hereof. Thereafter, 
this Supplemental Code, together with the provisions of the Code, 
except such portions of Article I, II, VI and VII as are not perti- 
nent thereto, as determined by the Code Authority and Administra- 
tor, shall become and be the code governing this Subdivision and 
the Code Authority shall for this Subdivision, become and be the 
only Code Authority, and shall j)erform all the functions with 
respect thereto. 

Article XIV — Monopolies 

Applicant imposes and shall impose no inequitable restrictions on 
membership therein. The Supplemental Code presented by it is 
not designed to promote monopoly, and shall not be so construed or 
applied as to oppress or eliminate small enterprises or discriminate 
against tliem, and is designed to effectuate the policy of the Act. 

Article XV — Effective Date 

This Supplemental Code shall become effective and binding on all 
persons engaged in the Subdivision on the eleventh day after its 
approval. 

Approved Code No. 347— Supplement No. 19. 
Registry No. 1312-04. 



Approved Code No. 347 — Supplement No. 21 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

KILN, COOLER AND DRYER MANUFACTURING 

INDUSTRY 

As Approved on June 12, 1934 



OKDER 



Supplementary Code of Fair Competition for the Kiln, Cooler 
AND Dryer Manufacturing Industry 

A division of 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 a Supple- 
mental Code of Fair Competition for the Kiln, Cooler and Dryer 
Manufacturing Subdivision of Machinery and Allied Products In- 
dustry, and hearings having been duly held thereon and the annexed 
report on said Supplemental 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 JExecutive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said an- 
nexed report and do find that said Supplemental Code complies in 
all respects with the pertinent provisions and will promote the policy 
and purposes of said Title of said Act ; and do hereby order that said 
Supplemental Code of Fair Competition be and it is hereby approved 
subject to the following conditions : 

(1) That the provisions of Article VIII. Section (a) insofar as 
they prescribe a waiting period between the filing with the Code 
Authority (or such agency as may be designated in the Supplemental 
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. 

(2) That the provisions of the second paragraph of Article VIII, 
Section (d) be and they hereby are stayed pending the submission 
of satisfactory evidence concerning distribution of the products 
of the Subdivision to the Administrator. 

(431) 



432 

(3) That the provisions of Article IX, Sections 5 to 10 inclusive; 
be and they hereby are stayed for a period of fifteen (15) days; 
then to become effective unless I, by my further order otherwise 
direct; within which time cause may be shown, if any there be, 
why the above provisions should not become effective; and that the 
Temporary Code Authority send notice of the stay of these pro- 
visions and of the opportunity to show cause why they should not 
become effective to all known employers of the Subdivision. 

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

Division Adininistrator. 

Washington, D.C, 

June 12, 193If. 



REPORT TO THE PRESIDENT 

The President, 

The White Home. 

Sir : This report rehites to the Supplemental Code of Fair Com- 
petition for the Kiln, Cooler and Dryer Manufacturing Subdivision 
of Machinery and Allied Products Industry as proposed by the 
Kiln, Cooler and Dryer Manufacturers Association. 

A public hearinjLi' was held in Washington, D.C. on December 4, 
1933 and reconvened on December 21, 1933. The public hearings 
were conducted in accordance with the provisions of Title I of the 
National Industrial Recovery Act and all persons were given full 
opportunity to be heard. 

GENERAL STATEMENT 

The Kiln, Cooler and Dryer Subdivision, being truly representa- 
tive of the manufacturers of the products defined in Article II of 
the Supplemental Code, has elected to formulate and submit a Sup- 
plemental Code of Fair Competition as provided in the second 
paragraph of Article I of the Code of Fair Competition for the 
Machinery and Allied Products Industry, approved by you on the 
seventeenth day of March, 1934. 

The Subdivision as defined in the Supplemental Code includes the 
design, manufacture, contracting for or subletting the manufacturing 
for the sale of Kilns, Coolers and Dryers. 

ECONOMIC EFFECT 

This Subdivision has been severely affected by the recent de- 
pression. This is evidenced by the steady decline in annual sales 
since 1928. In 1932 sales were nearly 90 per cent below the 1929 
level, declining from $3,421,000 in 1929, to $352,000 in 1932. The 
Subdivision has estimated sales at $100,000 for 1933, which indicates 
a further decline of 71.6 per cent from the 1932 level. 

Estimates of approximate employment, including office employees, 
indicate that the employment declined from 654 persons in 1929, to 
170 persons in 1933, or 74 per cent. 

No data are available on average hours of labor or average wage 
rates for this Subdivision. The association claims that normal op- 
eration has always required about 48 hours per week, one shift only; 
that wages paid have always been adequate ; and tiiat no child labor 
has ever been employed. 

In absence of detailed statistical information, no adequate analysis 
can be submitted as to the effect of the 40-hour provision in the 
Supplemental Code. 

The minimum wage provisions for the Subdivisions which are 
operating under the Code of the Machinery and Allied Products 
Industry, are based on a flat minimum hourly rate of 32 cents per 

(433) 



434 

hour for the South and the following city population differentials 
for all other sections of the United States : 

Over 50,000 population, 40 cents per hour; 10,000 to 50,000 popu- 
lation, 38 cents per hour; 10,000 population and under, 36 cents per 
hour. 

In addition to the minimum wage rates shown above, the Code 
provides that women engaged in substantially the same work as 
men, shall receive the same rate of pay as such men employees ; that 
the minimum wage for women employees engaged in plant operation 
shall be not less than 87.5 per cent of the proper rate for the locality 
in which employed as specified ; and that the minimum in the South 
shall be not less than 32 cents per hour. 

A distribution showang the number of factory workers receiving 
classified hourly rates is not available. Consequently the number of 
factory workers receiving less than the specified minimum rates pro- 
vided in the Code cannot be estimated, nor the effect which the mini- 
mum rates will have on the payrolls of this Subdivision. 

RESUME or SUPPLEMENTAL CODE 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines specific terms applicable to the 
Subdivision as used in this Supplemental Code. 

Article III provides for the adoption of the employment provi- 
sions of the National Industrial Recovery Code of the Machinery 
and Allied Products Industry, as approved by you, and as from time 
to time amended. 

Article IV provides for the adoption of Articles II, VI, VIII, 
and IX of the National Industrial Recovery Code of the Machinery 
and Allied Products Industry, in accordance with the conditions of 
this Article governing their adoption. 

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

Article VI provides for an accounting system and methods of 
cost finding and/or estimating. 

Article VII provides that no products of the Subdivision shall be 
sold or offered for sale below a reasonable cost when the Code 
Authorit}^ determines that an emergency exists. 

Article VIII provides for methods of setting up, revising and 
filing price lists and discount sheets and terms of sale and payment. 

Article IX sets forth trade practices for the Subdivision. 

Article X. No provision of this Suppleoiental Code relating to 
pricing and marketing shall apjDly to direct export sales or to any 
product destined ultimately for export. 

Article XI. This Supplemental Code and all the provisions thereof 
are expressly made subject to the right of the President, in accord- 
ance with Subsection (b) of Section 10 of the Act, from time to time 
to cancel or modify any order, approval, license, rule or regulation 
issued under said Act. Provision is also made that modifications 
may be submitted by the Code Authority to the Administrator for 
approval. 

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



435 
Article XIII states the effective date of this Supplemental Code. 

FINDINGS 

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

I find that: 

(a) Said Sui)plemental Code is well designed to promote the 
I3olicies and puri)oses 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 Avill provide for the general welfare by promoting the organi- 
zation of industry for the purpose of cooperative action among the 
trade groups bj^ inducing and maintaining united action of labor and 
management under adequate governmental sanctions and supervision, 
by eliminating unfair competitive practices, by promoting the full- 
est possible utilization of the present productive capacity of indus- 
tries, by avoiding undue restriction of production (except as may 
be temporarily required), by increasing the consumption of indus- 
trial and agricultural products through increasing purchasing power, 
by reducing and relieving unemployment, by improving standards 
of labor, and by otherwise rehabilitating industry. 

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

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

(d) The Supplemental Code is not designed to and will not per- 
mit monopolies or monopolistic practices. 

(e) The Supplemental Code is not designed to and will not elimi- 
nate or oppress small enterprises and w^ill not operate to discrimi- 
nate against them. 

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

For these reasons, therefore, I have approved this Supplemental 
Code, provided that certain provisions relating to price publica- 
tion, trade practices, and Article VIII, Section (e), are stayed, 
as stated in the order. 
Respectfully, 

Hugh S. Johnson, 

A dministrafor. 

June 12, 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE KILN, COOLER AND DRYER MANUFACTURING 
INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS 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 Supple- 
mental Code of Fair Competition for the Kiln, Cooler, and Dryer 
Manufacturing Subdivision of the Machinery and Allied Products 
Industry, and together with the Code of Fair Competition for the 
Machinery and Allied Products Industry to which it is a Supple* 
ment shall be the standard of fair competition for this Subdivision^ 
and shall be binding on each employer therein. 

Article II — Definiiton 

"Applicant " means the Kiln, Cooler, and Dryer Manufacturers 
Association, a trade organization truly representative of this Subdi- 
vision, all members of which are engaged in the manufacture for 
sale of the products of the Kiln, Cooler, and Dryer Manufacturing 
Subdivision of the Machinery and Allied Products Industry. 

" Industry " means the Machinery and Allied Products Industry, • 
as defined in its Code of Fair Competition as approved by the 
President, March 17, 1934, and as such definition may from time to 
time be amended. 

"" Subdivision '' means the Kiln, Cooler, and Dryer Manufacturing 
Subdivision of the Machinery and Allied Products Industry as de- 
fined and set forth in Paragraph (17) of Article II of the Code of 
Fair Competition for the Machinery and Allied Products Industry 
as follows : 

" Kiln, Cooler, and Dryer Manufacturing Subdivision " means the 
design, manufacture, contracting for or subletting tlie manufacturing 
for the sale of Kilns, Coolers, and Dryers and Accessory Equipment 
for the manufacture of Cement and Lime, and for use in all Mineral, 
Metallurgical, and Chemical Processes, including spare, repair, and 
replacement parts thereof, and includes all those so engaged. 

" Code " means the Code of Fair Competition for the Machinery 
and Allied Products Industry, as approved by the President, and 
as from time to time amended. 

" Person " means a natural person, a partnership, a corporation, 
an association, a trust, a trustee, a trustee in bankruptcy, a receiver, 
or other entity. 

" Employer " means any jjerson engaged in tliis Subdivision of the 
Industiy, either on his own behalf or as an employer of labor. 

(436) 



437 

" Employee " means any one who is employed in the Subdivision 
by any such employer. 

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

" The President " means the President of the United States. 

" The Administrator " means the Administrator for Industrial 
Recovery. 

" Basic Code Authority '' means the Code Authority for the Ma- 
chinery and Allied Products Industry as constituted by the Code. 

" Code Authority " means the Code Authority constituted for this 
Subdivision as provided bv the Code and by this Supplemental 
Code. 

" Group Code Authority " means the Code Authority for any 
group or classification of products within this Subdivision, con- 
stituted under the authority of Articlie V of this Supplemental 
Code. 

'' Publish " means to make available to the public. 

" Principles '■ means all essential characteristics. 

Article III^Employment Provisions 

The following Articles of the Code, viz : Article III, '' Working 
Hours " ; Article IV, " Wages " ; and Article V, " General Labor 
Provisions ", are hereby made a part of this Supplemental Code, with 
the same effect as if they were written into this Supplemental Code. 

Article IV — Adoption of Other Provisions of Code 

The following Articles of the Code, viz : Article II, " Definitions "; 
Article VI, "Administration ", to the extent that they shall be appli- 
cable to this Supplemental Code as such or as it may hereafter be 
administered as an autonomous Code ; Article VIII, "' Modifications 
and Termination"; and Article IX, ''Withdrawal"; are hereby 
made a part of this Supplemental Code with the same effect as if 
they were Avritten into this Supplemental Code. 

Article V — Organization and Administration 

To administer and supervise, and facilitate the performance of 
the provisions of this Supplemental Code, there is hereby established 
a " Code Authority." 

(a) The Code Authority for this Subdivision shall consist of— 

(1) The Executive Committee of the Kihi, Cooler, and Drj'er 
Manufacturers Association, consisting of not less than four and not 
more than seven members. 

(2) One additional member to be elected in any fair manner, 
with the approval of the Administrator, by emploj^ers in this Sub- 
division not members of the Applicant, who are cooperating in this 
Supplemental Code, as described in Section (e) hereof, if so desired, 
by such nonmembers. 

(3) The Administrator may, at his discretion appoint one addi- 
tional member (without vote and without expense to the Subdivision). 



438 

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

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

The Code Authority may adopt rules and regulations for its 
procedure and employ such personnel as it may deem necessary. 

(d) Any employer in this Subdivision shall be eligible for 
membership in Kiln, Cooler, and Dryer Manufacturers Association. 

(e) Any employer in this Subdivision shall be entitled to vote, 
subject to the provisions of Section (a) hereof, at the election of, 
and share in the benefits of the activities of the Code Authority and 
may participate in any endeavors of the Code Authority, in the 
preparation of any revisions of, or additions or supplements to, this 
Supplemental Code, by paying his proper pro rata share of the rea- 
sonable cost of creating and administering it, as determined by the 
Code Authority, such vote of employers in this Subdivision to be 
determined subject to the provisions of Section (a) hereof, by a vote 
of employers who are at that time engaged in manufacturing such 
product, and are at that time cooperating in this Code, as above 
described in this Section (e) of this Article V, cast concurrently 
in each of the two following methods: (1) by one vote of each 
employer. (2) By vote of employers weighted on the basis of one 
vote for each $25,000 of sales booked of such product of said em- 
ployers who are at that time engaged in manufacturing such prod- 
ucts, made in the preceding five calendar years, as reported to the 
Code Authority of this Subdivision. Each employer shall be entitled 
to at least one such A^ote. 

Except as otherwise provided in this Code any action taken at any 
meeting of employers shall be by a majority vote, cast and computed 
in each of the two methods hereinabove provided. 

(f) Employers in this Subdivision having a common interest 
and common problems, may be grouped by Code Authority for ad- 
ministrative purposes into various Group Subdivisions, or product 
classifications. 

In each Group Subdivision, or product classification, there may 
be a Group-Code Authority approved, or appointed, by Code 
Authority. 

(g) If formal complaint is made to Code Authority, that provi- 
sions of this Supplemental Code have been violated by any employer, 
the Code Authority or proper Group-Code Authority, may cause 
such investigation or audit to be made, to the extent permitted by 



439 

the Act, as may be deemed iiecessaiT. If such investigation is made 
by Group-Code Autliority, it sliall report the results of such inves- 
tigation or audit to Code Authority lor action. 

Unless Basic Code Authority shall take jurisdiction, the Code 
Authority shall have the right to investigate to the extent permitted 
by the Act, and analyze any transaction coming under the scope 
of this Supplemental Code, on which any unfair competition is al- 
leged, to siiow evidence of any violation of this Supplemental Code, 
to report any such alleged violation to the proper authorities for 
action. 

Article VI — Accounting and Costing 

The Code Authority shall cause to be formulated an accounting 
system and methods of cost finding and/or estimating capable of use 
b}^ all employers of the Subdivision. After .such system and methods 
have been formulated, full details concerning them shall be made 
available to all employers. Thereafter all employers shall determine 
and/or estimate costs in accordance with the principles of such 
methods. 

Article VII — Selling Below Reasonable Cost 

(a) When the Code Authority has reason to believe that an emer- 
gency exists as to any product or product^ of the Subdivision, and 
that the cause thereof is destructive price-cutting such as to render 
ineffective or seriously endanger the purposes or the maintenance of 
the provision of this Supplemental Code, the Code Authority may 
cause an investigation of costs and pricing to be made by an impartial 
agency in order to determine the existence of the emergency and 
the Code Authority maj' cause to be determined the lowest reasonable 
cost of the product or products of this Subdivision, such determina- 
tion 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 emer- 
gency, no employer of the Subdivision shall sell or offer to sell any 
products of the Subdivision 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 loAvest reason- 
able cost of such products. 

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

Article VIII — Price Lists 

(a) If and when the Code Authority of this Subdivision deter- 
mines that in any branch or ^roup of the Subdivision it has been 
the generally recognized practice to sell a specified product on the 
basis of net price lists, or price lists with discount sheets, and fixed 
terms of sale and payment, each employer shall, within ten (10) 
days after notice of such determination, file with the Code Authority 



440 

a net price list, or a price list and discount sheet, as the case may be, 
individually prepared by him, showing his current prices, or prices 
and discounts, and terms of gale and payment, for such specified 
product, and the Code Authority shall immediately publish and 
send copies thereof to all known employers who are cooperating 
in this Supplemental Code as described in Section (e) of Article 
V hereof. 

Kevised price lists and/or discount sheets and/or terms of sale and 
payment for such product may be filed from time to time thereafter 
with the Code Authority by any employer, but such revised price 
lists and /or discount sheets and/or terms of sale and payment shall 
be filed with the Code Authority ten (10) days in advance of the 
effective date. Copies of such revised price lists and/or discount 
sheets and/or terms of sale and payment, for such product, with 
notice of the effective date specified, shall be immediately published 
and sent to all known employers who are cooperating in this Sup- 
plemental Code as described in Section (e) of Article V hereof, any 
of whom may file, if he so desires, to become effective upon the date 
when the revised price list and/or discount sheet and/or terms of sale 
and payment first filed shall go into effect, revisions of his price lists 
and/or discount sheets and/or terms of sale and payment establishing 
prices or prices and discounts not lower or terms of sale and payment 
not more favorable than those established in the revised price lists 
and/or discount sheets and/or terms of sale and payment first filed. 
Nothing in the foregoing shall constitute a limitation upon the right 
of any employer to file' revised lists fixing his own prices, discounts 
and terms of sale and payment, which prices and discounts may be 
either more or less favorable than those contained in any other price 
list, to be effective as provided in the first sentence of this paragraph.^ 
(b) If and when the Code Authority shall determine that in any 
branch or group of the Subdivision not now selling its product on the 
basis of price lists, with or without discount sheets, with fixed terms 
of sale and payment, the distribution or marketing conditions in said 
branch or group are the same as, or similar to, the distribution or 
marketing conditions in a branch or group of the Subdivision where 
the use of price lists, with or without discount sheets, and fixed terms 
of sale and payment, is well recognized, and that a system of selling 
on net price lists or price lists and discount sheets with fixed terms 
of sale and payment for such product should be put into effect in such 
branch or group, then each employer of such branch or group shall 
within ten (10) days after notice of such determination, file with the 
Code Authority net price lists or price lists and discount sheets, 
containing fixed terms of sale and payment, showing his current 
prices and discounts and terms of sale and payment, and such price 
lists and/or discount sheets and/or terms of sale and payment may 
be thereafter revised in the manner hereinabove provided ; provided, 
however, that the Code Authority shall make no determination to 
place any product of the Subdivision (not now on a price list basis) 
on a price list basis, as provided in this paragraph (b) of Article 
VIII, unless the employers who are at that time engaged in manu- 

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



441 

ftictiiring such product and are at that time cooperating in this Code, 
have given their affirmative consent to such determination. The 
eligibility requirements, method, and effect of such voting shall be 
the same as provided in Section (e) of Article V. 

Each employer shall prepare and shall furnish the Code Author- 
ity for distribution with such number of copies of his price lists 
and/or discount sheets and terms of sale and payment as Code 
Autliority may prescribe. 

(c) No employer shall sell directly or indirectly by any means 
whatsoever, an}' i:)roduct of the Subdivision covered by provisions 
of this Article VIII at a price or at discounts, or on terms of sale 
and payment different from those provided in his own current net 
price lists, or price lists and discount slieets, provided that nothing 
in the above shall prevent an enn)loyer from adding to his own 
price and/or j^rice list and discou>it sheets by increasing his job 
price to include unusual selling, engineering, servicing, financing, 
financial risks, or other similar special charges, (except as provided 
in Article VII above), provided, however, that in the event of an 
employer quoting a higher price than the price published in his own 
price list and/or price list and discount sheets, to take care of un- 
usual selling, engineering, servicing, financing, financial risks, or 
other similar special charges, he shall not subsequently quote a lower 
price on said prospective sale than tliat price first quoted, except in 
accordance with revised price lists duly hied or unless he simultane- 
ously eliminates part or all of the unusual engineering, servicing, 
financing, financial risks or other similar special charges, for which 
a corresponding reduction only may be made, 

(d) No employer shall sell to, or through any broker, jobber, 
commission account or sales agency, (this is known in the trade as 
" pooled buying"), who or which is in fact an agent for an organi- 
zation of industrial consumers, with the result that any industrial 
consumer secures a discount, allowance or price other than the 
discount, allowance or price jDrovided for in the employer's own 
current net price lists or price lists with discount sheets. 

No emploj^er shall evade any provision of this code by selling to 
or through any dealer, jobber, distributor or other selling agency 
which shall fail to agree to resell in accordance with the provisions 
of Articles VII, VIII and IX of this Supplemental Code.- 

(e) Wherever by the provisions of this Article VIII an employer 
is or may be required to or permitted to file terms of sale and 
payment, such terms shall mean usual or standard terms, and to 
cover any special and/or unusual terms definite formulae for deter- 
mining such special and/or unusual terms shall be filed. 

(f) If and when Code Authority shall determine that it is unde- 
sirable to continue the filing of net price lists and/or price lists 
with discount sheets and/or fixed terms of sale and payment on any 
product in respect of which such filing has heretofore been required, 
such filing shall cease and the provisions of this Article shall not 
apply to such product unless and until Code Authority shall again 
determine that such filiuir be made. 



-See paraiiraph 2 (2) of order approvmu this Code. 



442 

Article IX ^ — Trade Practices 

Each of the following acts and practices is deemed to be inimical 
to the best interests of this Subdivision, and of the public, and each 
is, therefore, hereby declared to be, and to constitute, an unfair 
method of competition, viz : 

1. The secret offering or making, to any customer, agent, fiduciary, 
or representative of customer, of any payment or allowance of a 
rebate, refund, commission, credit, credit subsidy, unearned discount, 
or excess allowance, whether in the form of money or otherwise, or 
any special service or privilege, for the purpose of influencing a 
sale. No employer of the Subdivision shall give, permit to be 
given, or offer to give, anything of value for the purpose of influ- 
encing or rewarding the action of any employee, agent, or repre- 
sentative of another in relation to the business of the employer of 
such employee or the principal of such agent without the knowledge 
of such employer or principal, provided that no provision of this 
Code shall 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. 

2. Any discrimination between purchasers, by the sale of any 
article having a published price, at any price other than the seller's, 
published price, by means of direct or indirect price concessions,, 
or by means of any privilege not extended to purchasers generally. 

3. Untruthfully advertising, representing, or marking any 
product, with intent to deceive or mislead. 

4. The publishing or circularizing of threat of any suit for in- 
fringement of patent or trade mark, or of any other legal proceed- 
ings, not in good faith, which would tend to harass a competitor or 
intimidate his customers. 

5. The taking in trade or accepting in trade any secondhand or 
old equipment in part payment for new provided, how^ever, that this 
provision shall not be construed to prohibit in any way the return 
wnthin six months of the date of shipment, to the Vendor and the 
allowance of any fair adjustment thereon by the Vendor of any 
product which shall not meet the purposes for which it was sold. 
Any employer may, however, assist in finding a bona fide buyer for 
said equipment, but shall in no case take any financial interest in it. 

G. So long as the maker of any produi't of this Subdivision bear- 
ing the maker's name or trademark, Avhich has required special 
designing, research or development expense (or his successor in 
business) continues to make and supply such spare, repair, and re- 
placement parts therefor, supplying repair parts for such product 
of this Subdivision unless (a) the name of the maker of such copied 
non-genuine repair parts shall be plainly marked on each part (or 
if this is impracticable on the package or tag) so that the ultimate 
user is clearly informed by such marking on parts, packages, tags 
and in catalogues, price lists, quoted prices, advertisements or adver- 



See paragraph 2 (3) of order approving tins Code. 



443 

iisin^ literature of the manufacturers of such copied non-genuine 
parts that said parts were not made by the orifjinal maker of the 
products of the employers of this Subdivision. 

7. The furnishing to any purchaser, and/or his agent, directly or 
indirectly of detailed shop draAvings of the products of this Subdi- 
vision without filing a statement of such proposed transaction with 
the Code Authority Avhicli may api)rove or Avith the approval of the 
Administrator disapprove the transaction within ten (10) days by 
written notice to the employer. 

8. Disseminating false or misleading information relative to com- 
petitor's products, selling prices, rei)Utation, credit or financial 
standing, ability to perform work, or labor conditions. 

9. Inducing or attempting to induce a breach or abandonment of 
contract covering the purchase or sale of the products of this Subdi- 
vision; provided, however, that nothing in this Section shall be 
construed to prohibit the attempt on the part of the owner of or 
licensee under any patent to induce a purchaser or future purchaser 
of any product which shall infringe said patent, to avoid such pur- 
chase. 

10. It shall be an unfair trade practice for any employer to engage 
in destructive price cutting. 

Article X — Sales for Export 

The provisions of this Supplemental Code concerning pricing and 
marketing (Articles VII, VIII and IX) shall not apply to direct 
export sales of any product. A similar exemption may be granted 
by the Code Authority of this Subdivision as to sales of any i)roduct 
destined ultimately for export. Unless otherwise determined by the 
Code Authority the term " export " shall include all shipments to 
all places without the several States of the United States and the 
District of Columbia; provided, however, that no shipment to any 
territory or possession of the United States shall be considered an 
export when any employer is engaged in the industry in such 
territory or possession. 

Article XI — Modifications 

(a) As provided by Section 10 (b) of the Act, the President may 
from time to time cancel or modify any order, approval, license, rule 
or regulation issued under Title I of the Act. 

(b) Study of the trade practices of this Subdivision will be con- 
tinued by Code Authority, with the intention of submitting, from 
time to time, after its effective date, amendments or additions to, or 
revisions of, or supplements to, this Supplemental Code. 

Any such amendments, additions, revisions, or supplements, pro- 
posed by Code Authority, and a{)proved by a vote of the employers 
shall be in full force and effect upon approval by the President. 
The eligibility requirements, method, and effect of such voting shall 
be the same as provided in Section (e) of Article V. 

76054— 34— —10 



444 

Article XII — Monopolies 

The Supplemental Code presented by Applicant is not designed 
to promote monopoly, and shall not be so construed or applied as to 
oppress or eliminate small enterprises or discriminate against them, 
and is designed to effectuate the policy of the Act. 

Article XIII — Effective Date 

This Supplemental Code shall become effective and binding on all 
persons engaged in this Subdivision on the eleventh day after its 
approval by the President. 

Approved Code No. 347 — Supplement No. 21. 
Registry No. 1399-50. 



Approved Code No. 347 — Supplement No. 22 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

CONVEYOR AND MATERIAL PREPARATION 
EQUIPMENT MANUFACTURING INDUSTRY 

As Approved on June 19, 1934 



ORDER 



Supplementary Code of P^air Competiiion for the Conveyor and 
Materi.^l PpiEParation Equipment Manufacturing Industry 

A division of 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 IG, 1983, for approval of a Sup- 
plemental Code of Fair Competition for the Conveyor and Material 
Preparation Equipment Manufacturing Subdivision of Machinery 
and Allied Products Industry, and hearings having been duly held 
thereon and the annexed report on said Supplemental Code, con- 
taining findings with respect thereto, having been made and directed 
to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. G543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Supplemental Code complies in all 
respects with the pertinent provisions and will promote the polic)^ 
and purposes of said Title of said Act; and do hereby order that 
said Supplemental Code of Fair Competition be and it is hereby 
ajDproved subject to the following conditions: 

(1) That the provisions of Article VIII. Section (b) insofar as 
they prescribe a waiting period between the filing with the Code 
Authority (or such agency as may be designated in the Supplemental 
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. 

(2) Provided, however, that the application of the provisions of 
Article IX, Section (2) be, and it liereby is, staj^ed for a period of 
sixty (60) days, or such additional period as I, by my further 

(4-1.5) 



446 

order, may direct, in order that the Code Authority may submit 
a suitable plan for determining trade-in allowances. 

(3) That the provisions of Article IX, Section (15), be and they 
hereby are stayed pending the submission of satisfactory evidence 
concerning distribution of the products of the Subdivision to the 

Administrator. 

Hugh S. Johnson, 
Admimstrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Acting Division Administrator. 

Washington, D.C, 

June 19. 193Jf. 



REPORT TO THE PRESIDENT 

The President, 

The White Jlouse. 
Sir : This is a report on the Supplemental Code of Fair Competi- 
tion for the Conveyor and Material Preparation Equipment Manu- 
facturing: Subdivision of Machinery and Allied Products Industry, 
a public hearing on which was held in Washington, D.C., on No- 
vember 24, 1933, and reconvened on December 21, 1933. The hear- 
ings were conducted in full accordance with the provisions of Title 
I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Conveyor and Material Preparation Equipment Manufactur- 
ing Subdivision, being truly representative of the Manufacturers 
of the products defined in Article II of the Supplemental Code, 
has elected to formulate and submit a Supplemental Code of 
Fair Competition as provided in the second paragraph of Article 
I in the Code of Fair Competition for the Machinery and Allied 
Products Industry, approved by you on the seventeenth dav of 
March, 1934. 

The Subdivision includes the designing, manufacturing, and as- 
sembling for sale, and installing when required, of equipment (sta- 
tionary or portable), for handling, transporting and elevating 
mechanically, materials and articles (either packaged or loose), and 
also equipment for cleaning, preparing and processing bulk ma- 
terials while being mechanically handled (excepting, however, ma- 
chinery and/or equipment wherein a conveyor or material prepara- 
tion mechanism is an integral part thereof, and one or more processes 
or functions are performed within such machinery and/or equip- 
ment for the processing of food products or seeds), and includes all 
persons so engaged. 

In connection with the designing, manufacturing, assembling, and 
installing of such equipment, the Subdivision uses only the following 
mechanisms, or one or more of them : chains, belts and cables with 
or without drag scrapers; cleats, trolleys and buckets; gravity chutes; 
power driven and gravity rollers, wheels and balls ; belt idlers : screw 
conveyors; screens and mechanical cleaning devices; and mecha- 
nisms and supports required for their operation. The Subdivision* 
shall include the designing, manufacturing, assembling and install- 
ing of power driven and gravity rollers and wheels, belt idlers, screw 
conveyors, screens and mechanical cleaning devices; provided that it 
shall not include the designing and/or manufacturing for sale of 
other mechanisms, although such mechanisms are used as parts of 
the equipment designed, manufactured and assembled by it for sale. 

(447) 



448 

ECONOMIC EFFECT 

Annual sales declined from $53,000,000 in 1929 to $14,500,000 in 
1932, a decrease of 72.6 per cent. No estimate was made by the 
Subdivision of the value of sales for the year 1933, but the seven- 
month average of sales indicates that sales in 1933 will be approxi- 
mately the same as the 1932 level. 

Estimates of approximate employment for the entire Subdivision 
submitted by the Trade Association, indicate employment has de- 
clined to slightly less than one-half the 1929 level. In 1929, 10,300 
wage earners were reported, and 4,900 in 1933, representing a decrease 
of 52.4 per cent. 

Average hours per week were reported to be 49.9 in June, 1929; 
32.7 in June, 1933; and 33.2 in October, 1933. In October, 1933, the 
average hours were 33.5 per cent less than the June, 1929 average, 
and 1.6 per cent greater than the June, 1933 average. 

The effect of the 40-hour provision with production at more normal 
levels may be estimated on a basis of total man-hours per week in 
1931 divided by the number of hours prescribed in the Code. After 
1929, man-hours declined steadily from 513,970 to a minimum of 
147,673 in 1933 (first six months), or approximately 70 per cent. 

If it is assumed that the 244,120 man-hours for 1931 are representa- 
tive of the volume of production for that year, and a reasonable 
measure of man-hour requirements in a more normal period, the 
adoption of the 40-hour week would require a force of approximately 
6,103 employees, or 59.3 per cent of the 1929 working level. 

However, considering all employees of the Subdivision would not 
work the full 40-hour week, the average work week would be 
shorter; with 36 assumed effective hours, and employment cor- 
respondingly greater, 6,781 workers would be required to produce 
the 1931 volume. 

The minimum wage provisions proposed for the Subdivisions 
which are operating under the Code of the Machinery and Allied 
Products Industry are based on a flat minimum hourly rate of 32 
cents per hour for the South and the following city population 
differentials for all other sections of the United States : 

Over 50,000 population 40 cents per hour 

Over 10.000 to 50,000 population 38 cents per liour 

10,000 population and under 36 cents per hour 

In addition to the minimum wage rates shown above, the Code 
provides that women engaged in substantially the same work as men 
shall receive the same rate of pay as such men employees ; that the 
minimum wage for women employees engaged in plant operations 
shall be not less than 87.5 per cent of the proper rate for the locality 
in which employed as specified ; and that the minimum in the South 
shall be not less than 32 cents per hour. 

RESUME OF SUPPLEMENTAL CODE 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines specific terms applicable to the Sub- 
division as used in this Supplemental Code. 

Article III provides for the adoption of the employment pro- 
visions of the Code of Fair Competition for the Machinery and 



449 

Allied Products Industiy, as approved by you, and as from time to 
time amended. 

Article IV provides for the adoption of Article II, VI, VIII, 
and IX of the (^ode of Fair Competition for the Machinery and 
Allied Products Industry, in accordance with the conditions of this 
Article governing their adoption. 

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

Article VI provides for an accounting system and methods of 
cost finding and/or estimating. 

Article VII provides that no products of the Subdivision shall 
be sold or offered for sale below a reasonable cost. 

Article VIII provides for methods of setting up, revising and 
filling price lists and discount sheets and terms of sale and payment. 

Article IX sets forth trade practices for the Subdivision. 

xVrticle X states that no provisions of this Supplemental Code re- 
lating to pricing and marketing shall apply to export sales. 

Article XI provides that this Supplemental Code and all the 
]H'ovisions thereof are expressl}^ made subject to the right of the 
President, in accordance with Subsection (b) of Section 10 of the 
Act. from time to time to cancel or modify any order, approval, 
license, rule or regulation issued under said Act. Provision is also 
made that modifications may be submitted by the Code Authority 
to the President for approval. 

Article XII. Xo provision of this Supplemental Code shall be so 
applied as to permit monopolies, or monopolistic practices, or to 
eliminate, oppress, or discriminate against small enterprises. 

Article XIII states the effective date of this Supplemental Code. 

FINDINGS 

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

I find that: 

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

(b) Said Subdivision normally employs not more than 50,000 
employees; and is not classified by me as a majoi- industry. 

(c) The Supplemental Code as approved complies in all respects 
with the pertinent provisions of said Title of said Act, including 



450 

without limitation Subsection (a) of Section 3, Subsection (a)' of 
Section 7, and Subsection (b) of Section 10 thereof; and that the 
applicant association is an industrial association truly representative 
of the aforesaid Subdivision; and that said association imposes 
no inequitable restrictions on admission to membership therein. 

(d) The Supplemental Code is not designed to and will not per- 
mit monopolies or monopolistic practices. 

(e) The Supplemental Code is not designed to and will not elim- 
inate or oppress small enterprises and will not operate to discrimi- 
nate against them. 

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

For these reasons, therefore, I have approved this Supplemental 
Code, provided that certain provisions relating to price publication, 
the application of the provisions of Article IX, Section (2), and 
the provisions of Article IX, Section (15) are stayed as stated in 
the Order. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 
June 19, 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE CONVEYOR AND MATERIAL PREPARATION 
EQUIPMENT MANUFACTURING INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED TRODUCTS INDUSTRY 

Article I — Purposes 

To effectuate the policy of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Supple- 
mental Code of Fair Competition for the Conveyor and Material 
Preparation Equipment Manufacturing Subdivision of the Machin- 
ery and Allied Products Industry, and, together with the Code of 
Fair Competition of Machinery and Allied Products Industry to 
which it is a Supplement, shall be the standard of fair competition 
for this Subdivision, and shall be binding on each employer therein. 

Article II — Definitions 

" Industry " means the Machinery and Allied Products Industry, 
as defined in its Code of Fair Competition as approved by the Pres- 
ident, March 17, 1934, and as such definition may from time to time 
be amended. 

" Subdivision " means this Conveyor and Material Preparation 
Equipment Manufacturing Subdivision of the Machinery and Al- 
lied Products Industry as defined and set forth in paragraph eight 
(8) of Article II of the Code of Fair Competition of the Machinery 
and Allied Products Industry as follows: 

Conveyor and Material Preparation Equipment Manufacturing 
Subdivision means the designing, manufacturing, and assembling 
for sale, and installing when required, of equipment (stationary or 
portable), for handling, transporting, and elevating mechanically, 
materials and articles (either packaged or loose), and also for clean- 
ing, preparing and processing bulk materials while being mechani- 
cally handled (excepting, however, machinery and/or equipment 
wherein a conveyor or material preparation mechanism is an inte- 
gral part thereof, and one or more processes or functions are per- 
formed within such machinery and/or equipment for the processing 
of food products or seeds), and includes all persons so engaged. 

'Tn connection with the designing, manufacturing, assembling, 
and installing of such equipment, the Subdivision uses only the 
following mechanisms, or one or more of them : chains, belts and 
cables with or without drag scrapers, cleats, trolleys and buckets; 
gravity chutes; power driven and gravity rollers; wheels and balls; 
belt idlers; screw conveyors; screens and mechanical cleaning de- 
vices; and mechanisms and supjiorts required for their operation. 
The Subdivision shall include the designing, manufacturing, as- 

(451) 



452 

semblino- and installing of power driven and gravity rollers and 
wheels, belt idlers, screw conveyors, screens and mechanical cleaning 
devices ; provided that it shall not include the designing and/or man- 
ufacturing for sale of other mechanisms, although such mechanisms 
are used as parts of the equipment designed, manufactured and 
assembled by it for sale." 

" Code " means the Code of Fair Competition of the Machinery 
and Allied Products Industry, as approved by the President and as 
from time to time amended. 

" Person " means a natural person, a partnership, a corporation, an 
association, a trust, a trustee, a trustee in bankruptcy, a receiver, or 
other entity. 

'' Employer " means any person engaged in this Subdivision of the 
Industry, either on his own behalf or as an employer of labor. 

" Employee " means any one who is employed in the Subdivision 
by any such employer. 

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

" The President " means the President of the United States. 

"Administrator " means the Administrator for Industrial Re- 
covery. 

" Basic Code Authority " means the Code Authority for the Ma- 
chinery and Allied Products Industry as constituted by the Code, 

" Code Authority " means the Code Authority constituted for this 
Subdivision as provided by the Code and by this Supplemental 
Code. 

" Group Code Authority " means the Code Authority for any 
group or product classification within this Subdivision, constituted 
under the authority of Article V of this Supplemental Code. 

Article III — Employment Provisions 

The following Articles of the Code, viz : Article III, " Working 
Hours " ; Article IV, " Wages " ; and Article V, " General Labor 
Provisions"; are hereby made a part of this Supplemental Code, 
with the same effect as if they were written into this Supplemental 
Code. 

Article IV — Adoption or Other Provisions of Code 

The following Articles of the Code, viz : Article II, " Definitions ", 
and Article VI, " Administration ", to the extent that they shall be 
applicable to the Administration of this Supplemental Code as such 
or as it may hereafter be administered as an autonomous Code; 
Article VIII, '' Modifications and Termination " ; and Article IX, 
" Withdrawal " ; are hereby made a part of this Supplemental Code 
with the same effect as if they were written into this Supplemental 
Code. 

Article V — Administration 

(a) The permanent Code Authority to administer, supervise and 
to facilitate the enforcement of the Code and this Supplemental 
Code, heretofore duly constituted in accordance with Article VI, 



453 

Section (g) of the Code, shall be the Code Authority of this Sub- 
division until its successors are duly elected and qualilied in ac- 
cordance Avith the i)rocednral I'ules and ref^ulations of this Subdivi- 
sion (duly adopted in accordance with Article VI, Section («:) of 
the Codef and witli the followinn- Sections of this Article V. When 
its successors shall have been duly elected and qualilied, they shall 
<'onstitute the ])ernuincnt Code Authority. 

(b) Each elective member of the Code Authority shall be an 
employer, an executive officer of, or a partner in, an employer 
entitled to participate in the activities of the Subdivision as de- 
scribed in Article V, Section (f ) of this Supplemental Code. Such 
number, not fewer than five (5) and not more than nine (9) mem- 
bers, shall be elected as may be determined at a meeting of the Sub- 
division, and the Administrator, in his discretion, may appoint one 
(1) additional member (without vote and without expense to the 
Subdivision). Of these members to be elected, four shall be des- 
ignated and voted upon as 

Chairman 

Vice-Chairman 

Secretary 

Treasurer 
If, as a result of said election, any Group, as provided for by this 
Article V, Section (e), does not have on the Code Authority one 
representative of the employers comprising such Group, the employ- 
ers of such Grou}) may elect an additional member of the Code Au- 
thority, who shall have the qualiHcations hereinbefore recited. 

(c) In order that the Code Authority shall at all times be truly 
representative of the Subdivision and in other respects comply with 
the provisions of the Act, the Administrator may provide such hear- 
ings as he may deem ])roper; and thereafter if he shall find that the 
Code Authority is not truh^ representative or does not in other 
respects comply w^ith the provisions of the Act, may require a modifi- 
cation of method of selection of Code Authority, or any Group Code 
Authority. 

(d) Action by the Subdivision at any meeting for the transaction 
of business, adoption of procedural rules and regulations, subsequent 
election of Code Authority, and amendment of this Supplemental 
Code, shall be by vote of the employers in the Subdivision, present in 
person or by proxy, wherein each such employer shall have one vote ; 
provided, however, that on any question except the election of Code 
Authority, any such employer shall have the right to call for an 
additional vote and to have the same voted upon by each such em- 
ployer, w^eighted on the basis of one vote for each $500,000.00 of 
sales within the Subdivision made by such employer in the two pre- 
ceding calendar years, each such employer, however, being entitled to 
one vote, and in every such case action on the question shall be by 
both such methods of voting. 

(e) For administrative purposes, employers shall be grouped by 
Code Authority. The purpose of such grouping shall be to bring 
into working association employers having common interests and 
problems, based on products and/or geographical location. Each 
Group shall elect from the employers of such Group a Group Code 
Authority, and may adopt such rules for the conduct of the business 



454 

of the Group as are not inconsistent with the provisions of this 
Supplemental Code and the Code ; provided, however, that the provi- 
sions of Article VI of the Basic Code shall control the making of all 
examinations or audits and the use to be made of information so 
obtained with respect to any employer. 

Except as otherwise provided in this Supplemental Code, a Group 
Code Authority shall have power to hear all matters pertaining to 
the provisions of this Supplemental Code which may be submitted 
to it by any employer in its Group, having relation to the employers 
in said Group, or any of them, and to that end may, to the extent per- 
mitted by the Act and the Code, investigate and ascertain the facts 
through such examination or audit as such Group Code Authority 
may deem necessary; provided, however, that nothing in this Article 
shall preclude the Code Authority from taking action, either upon 
complaint of an employer or upon its own initiative, with respect 
to any matters, except those pertaining to relations between employer 
and employees. 

Any decision of the Group Code Authority shall be final, unless 
appeal is taken to the Code Authority or such decision involves 
matters requiring to be reported to the Basic Code Authority, in 
which case all pertinent information, papers and data in the posses- 
sion of the Group Code Authority shall be turned over by it to the 
Code Authority, and the Code Authority shall pass on the merits 
of the case and make final decision or report thereon to the Basic 
Code Authority. 

(f ) It being found necessary, in order to support the administra- 
tion of this Supplemental Code and to maintain the standards of 
fair competition established by this Supplemental Code and to ef- 
fectuate 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 this Supplemental Code. 

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

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

Only members of the Subdivision complying with this Supple- 
mental Code and contributing to the expense 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 voluntary activities or to make use of any emblem 
or insignia of the National Recovery Administration. 



455 
Article VI — Accounting and Costing 

The Code Authority shall cause to be formulated an accounting 
system and methods of cost finding and/or estimating capable of 
use by all employers of the Subdivision. After such system and 
methods have been formulated, iiill details concerning them shall 
be made available to all employers. Thereafter all employers shall 
determine and/or estimate costs in accordance with the principles 
of such methods. 

Article VII — Selling Below Reasonable Cost 

(a) When the Code Authority has reason to believe that an 
emergency exists as to any product or products of the Subdivision, 
and that the cause thereof is destructive price-cutting such as to 
render incfl'ective or seriously endanger the purposes and the main- 
tenance of the provisions of this Code, the Code Authority may 
cause an investigation of costs and pricing to be made by an im- 
partial agency in order to determine the existence of the emergency 
and may cause to be determined the lov^^est reasonable cost of any 
product or products of this Subdivision, such determination to be 
subject to such notice and hearing as the Administrator may require. 
The Administrator may approve, disapprove, or modify the deter- 
mination. Thereafter, during the period of emergency, it shall be 
an unfair trade practice for any employer of the Subdivision to sell 
or offer to sell any products of the Subdivision for which the lowest 
reasonable cost has been determined at such prices or upon such 
terms or conditions of sale that the buyer will pay less therefor 
than the lowest reasonable cost of such products. 

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

(b) The foregoing Section (a) shall not apply to (a) dropped 
lines, or (b) seconds, or (c) inventories which must be converted 
into cash to meet emergency needs, all of Avhich may be disposed 
of by any employer at any price and on any terms or conditions 
during a period not to exceed sixty (60) days, but only if such 
employer not less than three weeks before such proposed disposal, 
has filed with Code Authority a statement in writing setting forth 
the facts of, and reasons for such proposed disposal, and the price 
and the terms and conditions of sale, and Code Authority has not, 
before the termination of such three week period, in writing, dis- 
approved the proposed disposal. Notice of such disposal, if not dis- 
approved, shall be sent immediately to all employers manufacturing 
products of equivalent design, character, quality or specifications, 
and participating in this Supplemental Code as described in Article 
V, Section (c), who may sell such products within said sixty (60) 
day period at prices and on terms and conditions as favorable as 
those stipulated in the proposed disposal. 

(c) When prices of competing products manufactured outside 
the United States are lower than the established lowest reasonable 
cost, any employer may sell at prices and on terms and conditions 
as favorable as those of the competing foreign product, but only if 



456 

such employer has filed with Code Autiiority, a statement in writ- 
ing setting forth the facts of, and reasons for, such proposed sale 
and the prices to be charged and the terms and conditions of sale, 
and Code Authority has not, within one week, disapproved such 
proposed sale. 

Article VIII — Methods or Pricing and Terms or Sale and 

Payment 

(a) Each employer shall, within thirty (30) days after approval 
of this Supplemental Code, file with the proper Group Code Au- 
thority (or with Code Authority if there is no Group Code Au- 
thority having jurisdiction), a statement show^ing his current method 
of pricing and terms of sale and payment, for such of his products 
as are within the scope of this Subdivision. Such s