(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

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."



^ ^^irt^g Sc-^^jSyjg^ig;^-.^ 



NAT 



•Ksai«aBM«ss>sr«' 



i 



■■■■ B C BBi B wiinnw w niMBWiFWWwwffi ftiii w gaswtfgari: 



r&" 



tNo^^^\.\/\^t) 



"Bi 



V \^ 




t 



3^ 



NATIONAL RECOVERY ADMINISTRATION 

HUGH S. JOHNSON, Administrator for Industrial Recovery 



CODES OF FAIR COMPETITION 

Nos. 491-496 
AS APPROVED 

JULY 23-AUGUST 4, 1934 

WITH SUPPLEMENTAL CODES, AMENDMENTS 

EXECUTIVE AND ADMINISTRATIVE 

ORDERS ISSUED BETWEEN 

THESE DATES 



VOLUME XIV 




WE DO OUR PART 



•JNITED STiTKS 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 



MAY 26 1936 



V. VH- 



Charge to credit acct. 
with Supt. of Documeflis 



CONTENTS 



Code 
No. 



491 
492 
493 
494 
495 
496 



Industry 



CODES OF FAIR COMPETITION 

Imported Green Olive 

Stereotype Dry Mat 

Industrial Oil Burning Equipment Manufacturing 

Merchant and Custom Tailoring 

Steel Joist 

Industry of Collective Manufacturing for Door-To-Door 
Distribution 



Date 
proved, 


ap- 
1934 


Page 


July 


24 


1 


Julv 


27 


17 


Julv 


30 


31 


Julv 


31 


47 


Aug. 


1 


63 



Aug. 3 



93 



Industry 



Date 



AMENDMENTS 

Electrical Contracting, No. 1 (A Division of the Construction 

Industrv) 

Masons Contractors', No. 1 (A Division of the Construction 

Industry) 

Funeral Service, No. 1 

Cork, No. 1 

Funeral Service, No. 2 

Fur Dressing and Fur Dyeing, No. 3 

Oxy-Acetylene, No. 1 

Bedding Manufacturing, No. 3 

Builders Supplies Trade, No. 1 

Electric Storage and Wet Primary Battery, No. 1 

Fire Extinguishing Appliance Manufacturing, No. 1 

Inland Water Carrier Trade in the Eastern Division of the 
United States Operating Via the New York Canal System, 

No. 1 

Limestone, No. 2 

Lumber and Timber Products, No. 16 

Lumber and Timber Products, No. 17 

Lumber and Timber Products, No. 18 

Motion Picture, No. 2 

Porcelain Breakfast Furniture Assembling, No. 1 

Textile Processing, No. 2 

Umbrella Manufacturing, No. 2 

Fur Manufacturing, No. 1 

Motor Fire Apparatus Manufacturing, No. 1 

Novelty Curtains, Draperies, Bedspreads, and Novelty Pillows, 

No. i 

Anti-Friction Bearing, No. 1 

Bedding Manufacturing, No. 4 

Machine Tool and Equipment Distributing Trade, No. 1 

Mica, No. 1 

Schifili, the Hand Machine Embroidery, and the Embroidery 

Thread and Scallop Cutting Industries, No. 1 

Trailer Manufacturing, No. 1 

Drop Forging, No. 1 

Saddlery Manufacturing, No. 2 

Throwing, No. 3 

(I) 



7-23-34 



107 



7-23-34 


111 


7-24-34 


115 


7-25-34 


119 


7-25-34 


123 


7-25-34 


125 


7-26-34 


129 


7-27-34 


139 


7-27-34 


143 


7-27-34 


147 


7-27-34 


151 


7-27-34 


155 


7-27-34 


161 


7-27-34 


165 


7-27-34 


171 


7-27-34 


175 


7-27-34 


179 


7-27-34 


183 


7-27-34 


187 


7-27-34 


191 


7-30-34 


199 


7-30-34 


203 


7-30-34 


207 


7-31-34 


213 


7-31-34 


217 


7-31-34 


223 


7-31-34 


227 


7-31-34 


231 


7-31-34 


235 


8- 1-34 


241 


8- 1-34 


245 


8- 1-34 


249 



CONTENTS— Continued 



Industry 



AMENDMENTS— Continued 

Wood Heel, No. 1 

Blouse and Skirt Manufacturing Industries, No. 1 

Bobbin and Spool, No. 1 

Cotton Textile, No. 9 

Lumber and Timber Products, No. 19 

Metal Tank, No. 1 

Retail Food and Grocery Trade, No. 2 

Shoe and Leather Finish, Polish, and Cement Manufacturing, 

No. 1 

Wholesale Food and Grocery Trade, No. 2 

Cast Iron Soil Pipe, No. 3 

Construction, No. 4 

Fur Dressing and Fur Dyeing, No. 4 

Upholstery Spring and Accessories Manufacturing, No. 1 

SUPPLEMENTS 

Wholesaling or Distributing Trade, No. 14 (For Woolens and 
Trininiings Distril)uting Trade) 

Construction, No. 16 (For Heating, Piping, and Air Condition- 
ing Contractors') 

Fishery, No. 6 (For Trout Farming, Eastern Section) 

Machinery and Allied Products, No. 35 (For Oil Field Pumping 
Engine Manufacturing) 

Wholesaling or Distributing Trade, No. 15 (For Button Jobbers' 
or Wholesalers' Trade) 

Wholesaling or Distributing Trade, No. 16 (For Sheet Metal 
Distributing Trade) 

Business Furniture, Storage Equipment and Filing Supply, 
No. 2 (For Filing Supply) 

Business Furniture, Storage Equipment and Filing Supply, No. 
1 (For Fire Resistive Safe) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 44 (For Pulp and Paper Mill Wire 
Clotli Manufacturing) 

Maclunery and Allied Products, No. 36 (For Refrigerating 
Machinery) 

Wholesaling or Distributing Trade, No. 17 (For Wholesale 
Hardware Trade) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 45 (For Hand Bag Frame Manufac- 
turing) 

Machinery and Allied Products, No. 37 (For Concrete Mixer).. 

Macliinery and Allied Products, No. 40 (For Diesel Engine 
Manufacturing) 

Machinery and Allied Products, No. 38 (For Jack Manufactur- 
ing) 

Machinery and Allied Products, No. 39 (For Railway Appliance 
Manufacturing) 

Machinery and Allied Products, No. 41 (For Hydraulic Machin- 
ery) 

Wholesaling or Distributing Trade, No. 18 (For Wholesale 
Paint, Varnish, Lacquer, Allied and Kindred Products Trade) 

ADMINISTRATIVE ORDERS 

Business Furniture, Storage Equipment and Filing Supply, 
Contracts with the procurement division of the U.S. Govern- 
ment, Stay of code provisions 

Drapery and Ujjholstery Trimming, Extension of the Code for 
a period of three months 

(II) 



Date 



8- 1-34 


253 


8- 2-34 


257 


8- 2-34 


261 


8- 2-34 


267 


8- 2-34 


271 


8- 2-34 


275 


8- 2-34 


281 


8- 2-34 


285 


8- 2-34 


293 


8- 3-34 


297 


8-, 3-34 


307 


8- 3-34 


311 


8- 4-34 


317 



7-23-34 

7-25-34 
7-25-34 

7-25-34 

7-26-34 

7-27-34 

7-30-34 

7-30-34 

7-30-34 
7-30-34 
7-30-34 

8-1-34 
8-1-34 

8- 1-34 

8- 1-34 

&- 1-34 

8- 2-34 

8- 4-34 



7-23-34 
7-23-34 



CONTENTS— Continued 



Industry 



Date 



ADMINISTRATIVE ORDERS— Continued 

Fur Manufacturing, Code Authority, Adding two additional 
members to the Temporary 

Structural Steel and Iron Fabricating, EflFective date of Code, 
Stay of 

Territorial exemptions from Codes for Can Manufacturing and 
Canning 

Wholesale Confectioners', Trade Practice Provision, Extension 
of stay for one 

Warm Air Furnace Manufacturing, Code Administration, Ter- 
mination of exemption for collection of expenses of 

Daily Newspaper Publishing Business, Newspaper Industrial 
Board, Cancellation of Order adding two members to the — 

Machinery and Allied Products, Code Authorities, Extending 
time to elect 

Cotton Textile, Productive Machinery, Partial approval of 
Order curtailing 

Foundry Supply, Hazardous occupations. Approving a list of. 

Government contracts and contracts involving the use of gov- 
ernment funds. Petroleum Industry, Contracts between the 
U.S. Government and 

Retail Trade, Overtime work allowed for inventory purposes- _ 

Furniture Manufacturing, Homework, Terminating a stay rel- 
evant to 

Labor Complaints and Disputes, Procedure for handling 

Ladies Handbag, Code Administration, Termination of exemp- 
tion for collection of expenses of 

Non-Ferrous Foundry, Code Administration, Termination of 
exemption for collection of expenses of 

Trucking, Code Authorities, Extending time for elections of 
state — in California 

Trucking, Code Authorities, Extending time for elections of 
state — in New Hampshire 

Trucking, Vote, Granting permission to Members to — if regis- 
tered between specified dates 

Importing Trade, Inorganic Nitrogen Importers, Granting ex- 
emption from Trade Practice Provisions to 

Importing Trade, Potash and Potash Salts Importers, Granting 
exemption from Trade Practice Provisions to 

Insecticide and Fungicide, Sales, Stay of provisions relevant to 
Inter-Industry 

Household Goods Storage and Moving Trade, Register and 
publish open prices. Extending time to 

Imported Date Packing, Code Administration, Termination 
relevant to Collection of expenses of 

Motor Vehicle Retailing Trade, Sales to Governmental 
Agencies, Stay of Code provisions relevant to 

Wiitch Case Manufacturing, Unstamped watch cases may be 
sold. Extension of time during which 

Cylinder Mould and Dandy Roll, Hazardous occupations, 
Approving a list of 

Fan and Blower, Hazardous occupations. Approving a list of- 

Lumber and Timber Products, Pole and Piling Division, Stay 
applicable to the selection of the Administrative Agency of 
the Cypress Subdivision 

Metal Hat Die and Wood Hat Block, Hazardous occupations. 
Approving a list of 

Government contracts and contracts involving the use of 
government funds, Lease of Indianapolis, Indiana, stock- 
yard space upon the premises of the Belt Railroad and 
Stockyards Company 

(in) 



7-23-34 
7-23-34 
7-23-34 
7-23-34 

7-24-34 

7-25-34 

7-25-34 

7-26-34 
7-26-34 

7-26-34 
7-26-34 

7-27-34 
7-27-34 

7-27-34 

7-27-34 

7-27-34 

7-27-34 

7-28-34 

7-30-34 

7-30-34 

7-30-34 

7-31-34 

7-31-34 

7-31-34 

7-31-34 

8- 1-34 
8- 1-34 

8- 1-34 
8- 1-34 

8- 2-34 



CONTENTS— Continued 



Industry 



Date 



Page 



ADMINISTRATIVE ORDERS— Continued 

Retail Lumber, Lumber Products, Building Materials and 
Building Specialties Trade, Modal Costs, Modifying previous 
Order relevant to 

Washing and Ironing Machine Manufacturing, Code Adminis- 
tration, Termination of exemption relevant to collection 
of expenses of 

Government contracts and contracts involving the use of 
government funds, Public utilities. Contracts for 

Robe and Allied Products, Expenses, Extending time within 
which Code Authority shall submit plan for equitable 
allocation of 

Nonferrous and Steel Convector Manufacturing, Hazardous 
occupations, Approving a list of 

Rock and Slag Wool Manufacturing, Hazardous occupations. 
Approving a list of 



8- 2-34 

8- 2-34 
8- 3-34 

8- 3-34 
8- 4-34 
8- 4-34 



597 

600 
601 

602 
603 
604 



(IV) 



CODES OF FAIR COMPETITION 



Approved Code No. 491 
CODE OF FAIR COMPETITION 

FOR THE 

IMPORTED GREEN OLIVE INDUSTRY 

As Approved on July 24, 1934 



ORDER 



Approving Code of Fair Competition for the Imported Green 

Oli^^ 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 Imported Green Olive Industry, and hear- 
ings having been duly held tJiereon 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 80, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of said 
Title of said Act; and do hereby order that said Code of Fair Com- 
petition be and it is hereby approved, 

Hugh S. Johnson, 
Administrator for Indiustrial Reco'very. 
Approval recommended: 
Armin W. Riley, 

Division Administrator. 
Washington, D.C, 

July ^4, 193Jf. 

75619° 829-133 34 1 (1) 



REPORT TO THE PRESIDENT 

The President, 

Th£ White House. 
Sir : This is a repoi't on the Code of Fair Competition for the 
Imported Green Olive Industry, and on the Public Hearing held 
in Washington, D.C., on March 9, 1934, in accordance with the 
provisions of the National Industrial Recovery Act. 

GENERAL 

The Code for the Imported Green Olive Industry will mean, it is 
estimated, an increase in employment of between fifteen per cent 
(15%) to twenty per cent (20%) and in wages approximately 
eighteen per cent (18%). Average hours in 1933 were reported as 
forty-seven (47) hours; a reduction to forty (40) hours as provided 
in this Code will mean an increase of between fifteen per cent (15%) 
to twenty per cent (20%) in employment from that prevailing early 
in 1933. 

The volume of Imports of Green Olives including Pitted and 
Stuffed has shown a steady decline from a peak of 9,790,792 gallons 
in 1930 to 5,932,800 gallons in 1931 and 6,824,798 gallons in 1932 with 
a corresponding decline in the sales price of Green Olives on the 
American market. 

The employment in the Imported Green Olive Industry is evsti- 
mated at one thousand (1000) employees. 

The Association of American Importers of Green Olives is a trade 
association, truly representative of the industry, and imposes no in- 
equitable restrictions on membership. 

HOURS 

The Code for the Imported Green Olive Industry provides for a 
maximum work week of forty (40) hours with a limitation of eight 
(8) hours in any twenty-four (24) hour period. There are the usual 
exceptions, complete or partial, in the case of persons employed in a 
managerial, executive, or technical capacity, who regularly receive 
not less than thirty-five dollars ($35.00) per week. Watchmen are 
not permitted to work in excess of fifty -six (56) hours per week. 
Chauffeurs, truckdrivers, and deliverymen are not permitted to work 
in excess of forty-eight (48) hours per week. Foremen, foreladies, 
shipping and receiving clerks may be permitted to work forty-four 
(44) hours per week provided that time and one-third is paid for all 
time worked in excess of the basic forty (40) hours as provided in 
this Code. No employee shall be permitted to work more than six 
(6) days in any seven (7) day period. In cases of peak production, 
inventory periods, financial closing periods, and other uniLsual con- 
ditions beyond the control of the employer, employees may work not 

(2) 



in excess of six (6) hours in any week or one (1) hour in any day, 
during not to exceed twelve (12) weeks in any calendar year or eight 
(8) weeks in any six (6) months, such overtime to be compensated 
for at time and one-third. Emplo3^ers shall report to the Code Au- 
thority or the Administrator, as the case may be, all hours worked 
in excess of basic hours permitted by tliis Code. Office employees 
who regularly receive thirty-five dollars ($35.00) per week or more 
are not subject to overtime payment. Employees on emergency re- 
pair or emergency maintenance work involving mechanical break- 
downs or protection of life and property working in excess of the 
basic hours permitted by this Code shall be compensated by time 
and one-third the regular hourly rate. 



WAGES 



No person employed in clerical, accounting or office work shall be 
paid less than at the rate of Sixteen dollars ($16,00) per week except 
that office boys shall be paid at a rate of not less than fourteen 
dollars ($14.00) per week. 

The number of office boys classified and compensated below the 
minimum shall not exceed five per cent (5%) of the total number of 
office employees, but each employer shall be entitled to one such 
employee. No other employee shall be paid less than at the rate of 
forty cents (40^) per hour for male employees and thirty cents (30^) 
per hour for female employees, provided, however, that the Code 
Authority shall render a complete report on this subject to the Ad- 
ministrator or his duly authorized agent at a time prior to September 
1, 1934, with a view to an upward revision of these minima. Time 
and one third the normal rate shall be paid for all time worked 
(except by those employees covered by Section 2 of Article III and 
watchmen) on Sun-days or on State and National holidays. There 
are the usual safeguarding clauses. No person under sixteen (16) 
years of age shall be employed in the Industry. 

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

I find that: 

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



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

(c) The 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 a trade association truly representative of the aforesaid 
Industry; and that said association imposes no inequitable restric- 
tions on admission to membership therein. 

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

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

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

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

Hugh S. Johnson, 

Ad7ninistrator, 
July 24, 1934. 



CODE OF FAIR COMPETITION FOR THE IMPORTED 
GREEN OLIVE INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Recovery 
Act, this Code is hereby established as a Code of Fair Competition 
for the Imported Green Olive 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 terms " Imported Green Olive Industry " and/or 
" Industry ", mean the business of bottling and/or packing and sale 
by the bottler and/or packer of imported green olives, and such 
related branches or subdivisions as may from time to time be in- 
cluded under the provisions of this Code by the President, after 
such notice and hearing as he may prescribe. 

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

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

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

Section 5. The term " watchmen " includes only employees whose 
principal function includes watching and guarding the premises and 
property of any establishment in the industry. 

Section 6. The term "Association " means the Association of 
American Importers of Green Olives. 

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

Section 8. The term " State " means any State or Territory of 
the United States and the District of Columbia. 

Section 9. The term " Code Authority " as used herein means the 
agency established pursuant to Article VI for the purpose of acbnin- 
istering this Code. 

Article III — Hours 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any one week, nor more than eight (8) hours in 
any twenty-four (24) hour period, except as herein otherwise pro- 
vided. 

(5) 



Section 2. The provisions of Section 1 of this Article shall not 
apply to pereons employed in a manaf2;erial, executive, or technical 
cai)acity, wlio regularly receive not le.ss than thirty-five dollars 
($35.00) per week. 

Section 3, Watchmen shall not be permitted to work in excess of 
fifty-six (56) hours per week. 

I^EcnoN 4. Cliauffeurs, truck, and deliverymen shall not be per- 
mitted to work in excess of forty-eight (-48) hours per week. 

Section 5. Foremen, foreladies, shipping and receiving clerks 
may be permitted to work forty-four (44) hours per w^eek, provided 
they are paid at the rate of time and one-third for all hours in excess 
of the maximum provided in Section 1 of this Article. 

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

Section 7. (a) In cases of peak production, inventory periods, 
financial closing periods, and other unusual conditions beyond the 
control of the employer, employees may be permitted to work not 
more than six (6) hours weekly, or one (1) hour daily, in excess of 
the maximum hours permitted in Section 1 of this Article; for a 
period not to exceed twelve (12) weeks in any calendar year, or eight 
(8) weeks in any six (6) months, provided that an employee work- 
ing in excess of the maximum hours permitted herein shall be paid 
at least one and one-third his regular hourly rate for hours worked 
in excess of the maxium hours prescribed for him herein. Employ- 
ers shall report to the Code Authority or to the Administrator, as 
the case may be, all hours worked in excess of the maximum hours 
permitted in Section 1 of this Article. Office workers who regularly 
receive not less than thirty-five dollars ($35.00) per week or over 
are not subject to overtime payment. 

(b) Employees on emergency repair or emergency maintenance 
work involving mechanical break-downs or protection of life and 
property may work in excess of the maximum hours permitted in 
Section 1 of this Article, provided that any employee so working in 
excess of the maximum hours prescribed for him herein shall be 
paid for the excess hours by at least one and one-third his regular 
hourly rate. 

Article IV — ^Wages 

Section 1. No person employed in clerical, accounting, or office 
worlt: shall be paid less than at the rate of sixteen dollars ($16.00) 
per week, except that office boys shall be paid at a rate of not less 
than fourteen dollars ($14.00) per week. The number of office boys 
classified and compensated below the minimum above prescribed 
shall not exceed five percent (5%) of the total number of office em- 
ployees, but each employer shall be entitled to one such employee 
classified and paid as an office boy. 

Section 2. Iso employees other than those classified under Section 
1 of this Article shall be paid less than at the rate of forty cents 
(40^^) per hour for male employees and thirty cents (30^) per hour 
for female employees. The Code Authority on or before September 
1, 1934, shall render a complete report on the subject of minimum 
wages, provided in this section, to the Administrator or his duly 
authorized agent, with a view to an upward revision of such mini- 
mum wages. 



Section 3. This Article establishes a minimum rate of pay ^Yhich 
shall apply, irrespective of whether an employee is actually com- 
pensated on a time rate, piecework or other basis. 

Section 4. The weekly compensation for employment in excess 
of the minimum wages established, notwithstanding that the hours 
of work in any such employment may be reduced, shall not be re- 
duced as a result of the adoption of this Code and the pay for such 
employment shall be increased by an equitable adjustment of all 
j)ay schedules in order to maintain fair differentials existing prior 
to the adoption of this Code. It shall be the duties of the Code 
Authority for the Imported Green Olive Industry to observe the 
operation of this Section and recommend to the Administrator 
further provisions as experience may indicate to be appropriate to 
effectuate its purpose. 

Section 5. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees, provided, that when male employees perform work cus- 
tomarily done by female employees only during hours when female 
labor is prohibited by applicable law, it shall not be required that 
females doing such work at other times be paid at the same rate 
as male employees. 

Section 6. A person whose earning capacity is limited because 
of age, physical or mental handicap, or other infirmity, may be 
employed on light 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 authoriz- 
ing such person's employment at such wages and for such hours 
as shall be stated in the certificate. Such authority shall be guided 
by the instructions of the United States Department of Labor in 
issuing certificates to such persons. Each employer shall file 
monthly with the Code Authority a list of all such persons employed 
by him, showing the wages paid to, and the maximum hours of 
work for such employees. 

Section 7. Time and one-third the normal rate shall be paid for 
all time worked (except by those employees covered by Section 2 
of Article III and watchmen) on Sundays or on State and National 
^holidays. 

Section 8. "Wages shall be exempt from fines and rebates and 
from charges and deductions, except charges and deductions for con- 
tribution to pensions, insurance or benefit funds, voluntarily made 
by employees or required by law or deductions for other purposes 
when provision therefor is made by a written contract between 
employer and employees. Copies of all such contracts must be 
kept on file by each employer for at least six (6) months after the 
termination of the contract and such contract shall be open to the 
inspection of the Administrator or his agent. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) j^ears of age shall be 
employed in tlie industry. No person under eighteen (18) years of 
age shall be employed at operations or occupations which are hazard- 
ous in nature or dangerous to health. The Code Authority shall 

75619° S29-133 34—2 



8 

submit to the Administrator within sixty (60) days after approval, 
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 Author- 
it}^ in such State empowered to issue employment or age certificates 
or permits showing that the employee is of the required age. 

Section 2. In compliance with Section 7 (a) of the Act, it is 
provided : 

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

(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 payment 
of compensation or reclassify employees or duties of occupation 
performed 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 on employers more stringent require- 
ments as to age of employees, wages, hours of work, or as to safety, 
health, sanitary' or general working conditions, or insurance or fire 
protection, than are imposed by this Code. 

Section 5. x\.ll employers shall post and keep posted copies of 
this Code dealing with maximum hours, minimum wages and gen- 
eral labor provisions in conspicuous places accessible to all em- 
ployees. Every member of the industry shall comply with all 
rules and regulations relative to the posting of such i)rovisions 
which may from time to time be prescribed by the Administrator. 

Section 6. Employers shall make payment of all wages due in* 
lawful currency or by negotiable checks, such checks to be payable 
on demand. Agreements of hire shall provide that wages shall 
be paid at least as often as every week and salaries at least as often 
as every month. 

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. 

Article VI — Organization, Powers and Duties or the Code 

Authority 

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

A meeting of the industry shall be called by the Association of 
American Importers of Green Olives, the agency hereby designated 
to conduct an election of the members of the Code Authority, within 
five (o) days after the eifective date of this Code. Notice of such 



meeting shall be sent to all ascertainable members of the industry 
including wholesale grocers who import and/or bottle or pack green 
olives for sale. Each member of the industry shall be entitled to one 
vote for every thousand fenegas of green olives he imported and/or 
purchased in the preceding calendar year; said vote or votes may 
be cast in pei^jn, by proxy or by mail, provided, however, that two 
members of the five members of the Code Authority to oe elected 
shall represent those members of the industry who, in the preceding 
calendar year imported and/or purchased less than 5,000 fenegas of 
imported green olives. Members of the industry who come within 
the preceding classification may cast their vote or votes for any 
felloAv member regardless of who the nominees are. Members so 
elected shall serve for one (1) year, at the end of which time there 
shall be another election conducted by the Code Authority in the 
manner as above set forth. If, however, in any case, by reasons of 
conditions peculiar to the industry, selection by the industry is im- 
possible, it is provided that appointment shall be by the Adminis- 
trator. Vacancies occurring during the year shall be filled in the 
same manner as was followed at the first election, such election, how- 
ever, to be conducted by the Code Authority. 

Sectiox 2. In addition to membership as above provided, there 
may be one to three members, without vote, to be appointed by the 
Administrator to serve until their successors are appointed. Such 
members, together with the Administrator, shall be given notice of 
and shall be permitted to sit at all meetings of the Code Authority. 

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

Section 4. In order that the Code Authority shall at all times be 
truly representative of the industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe such 
hearings as he may deem proper; and thereafter if he shall find that 
the Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an ap- 
propriate modification 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 anj other member, officer, agent or em- 
ployee of the Code Authority. Nor shall any member of the Code 
xVuthority, exercising reasonable diligence in the conduct of his 
duties hereunder, be liable to anyone for any action or omission to 
act under this Code, except for his own wilful malfeasance or non- 
feasance. 

Section 6. If the Administrator shall determine that any action 
of the Code Authority or any agency thereof may be unfair or un- 
just or contrary to the public interest, the Administrator may require 



10 

that such action be suspended to afford an opportunity for investiga- 
tion of the merits of such action and further consideration by such 
Code xVuthorit}^ or ag:ency pemling final action, -which shall not be 
effective unless the Administrator approves or unless he has failed 
to disapprove after thirty (30) days' notice to him of intention to 
l^roceed 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 the execution of the provisions of this Code and 
provide for the compliance of the industry with the provisions of 
the Act. 

(b) To adopt by-laws and rules and regulations for its own pro- 
cedure and for the administration 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- 
thorit}', members of the industr}' subject to this Code shall furnish 
such statistical information as the Administrator may deem neces- 
sarv for the purposes recited in Secticm 3 (a) of the Act to such 
Fecleral and State agencies as he may designate; provided that 
nothing in this Code shall relieve an}' member of the industry of any 
existing ol)ligations 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 otlier Governmental 
agencies as may be directed by the Administrator. 

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

(e) To make recommendations to the Administrator for the coor- 
dination of the administration of this Code with such other codes, 
if any, as may be related to 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 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- 
tributions as above set forth by all members of the industry, and to 



11 

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 regula-^ 
tions 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 Au-| 
Ihority 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. I 

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. 

(g) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the industry in their relations 
with each other or with other trades and/or industries and to recom-^ 
mend to the Administrator measures for industrial planning in-: 
eluding stabilization of employment. 

(h) To elect a representative to serve on any coordinating or ad-, 
visory committee which may subsequently be established for thei 
entire grocery manufacturing industry, and to cooperate with anyi 
such committee with respect to any functions that may be delegated 
to it by the Administrator. i 

(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 formu- 
lating fair trade practices to govern the relationships between em- 
ployers under this Code and under such other codes to the end that 
sucn fair trade practices may be proposed to the Administrator 
as amendments to this Code and such other codes. 

(]') 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. 

(k) 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, full information con- 
cerning such methods shall be made available to all members of the 
industry. Thereafter each member of the industry shall utilize 
such methods to the extent found practicable. Nothing herein con- 
tained shall be construed to permit the Code Authority, any agent 
thereof, or any member of the industry to suggest uniform additions, 
percentages or differentials or other uniform items of cost which 
are designed to bring about arbitrary uniformity of costs or prices. 

(1) The Code Authority shall create a committee on safety and 
health which shall study and recommend to the Administrator, 
within six (6) months after the effective date of this Code, standards 
for safety and health for employees of the industry. 



12 

Section 8. To make studies and investigations for the establish- 
'nent of classifications, dimensional standards and quality specifica- 
tions in cooperation with the United States Department of Agricul- 
ture and the United Stat^^s Bureau of Standards. Such findings 
shall be reported to the Administrator within six (6) months after 
the effective date of the Code. 

Akticle VII — Trade Practices 

The following practices constitute unfair methods of competition 
'for members of the industry and are prohibited : 
I 1. Inaccurate Advertising. — No member of the industry shall pub- 
lish 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 Hn- 
cluding, but without limitation, its use, trade-mark, grade, quality, 
quantity, origin, size, substancCj character, nature, finish, material, 
content, or preparation) or credit terms, values, policies, services, or 
the nature or lorm of the business conducted. 

2. False Billing. — No member of the industry shall knowingly 
withliold from or insert in any quotation or invoice any statement 
that makes it inaccurate in any material particular. 

3. lnnccv.rate Labelling. — No member of the industry shall brand 
or mark or pack an}' 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. 

4. Inaccurate References to Ccnrfpetitors^ etc. — No member of the 
industry shall publish advertising which refers inaccurately in any 
material particular to any competitors or their goods, prices, values, 
credit terms, policies, or services. 

5. Diversion of Brokerage. — (a) No member of the industry shall 
pay or allow any brokerage or commission, except to its sales repre- 
sentatives, and then only for services actually performed ; no brokeu- 
age or commission shall be paid or allowed, directly or indirectly, 
to a buyer. No member of the industry shall permit a brokerage 
or commission to be paid or allowed to any buyer by employing a 
sales agency which such member of the industry knows or has reason 
to believe is dividing or will divide its brokerage or commission with 
any buyer. 

(b) The foregoing provision shall not be construed or applied 
60 as to limit the right of any member to grant to any buyer a price 
reduction or discount by reason of savings effected through a price 
differential which is based upon and reasonably measured by such 
savings to the member and is based upon and reasonably measured 
by the quantity sold and delivered. 

j 6. Costs and Price Cutting. — (a) Wilfully destructive price cut- 
ting is an unfair method of competition 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 
price constitutes unfair competition as destructive price cutting, 
imperiling small enterprise or tending toward monopoly or the im- 
pairment of code wages and working conditions. The Code Author- 
ity shall within five (5) days afford an opportunity to the member 



13 

filing the price to answer such complaint and shall within fourteen 
(14) days make a ruling or adjustment thereon. If such ruling 
is not concurred in by either party to the complaint, all papers 
shall be referred to the Research and Planning Division of NRA 
which shall render a report and recommendation thereon to the 
Administrator. 

(b) When 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 8 
hereof, is forbidden. 

7. Distressed Merchandise. — Notwithstandino^ the provisions of 
Section 6 of this Article, distressed merchandise may be sold in 
accordance with rules and regulations to be prescribed by the Code 
Authority, subject to the approval of the Administrator. 

8. Emergency Provisimis. — (a) If the Administrator, after in- 
vestigation shall at any time find both (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 speci- 
fied product within the industry for a limited period is necessary 
to mitigate the conditions constituting such emergency and to effect- 
uate the purposes of the Act, the Code Authority may cause an 
impartial agency to investigate costs and to recommend to the Ad- 
ministrator a determination of the stated minimum price of the 
product affected by the emergency and thereupon the Administrator 
jnay 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 Industrial 
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. 

9. Selling On Other Than Standard Terms. — It shall be an unfair 
trade practice to sell on other than the following terms and 
conditions : 

(a) Bottled Olives — Guarantees. — No member of the industry 
shall guarantee against spoilage, olives in bottles and jars (up to 
and including the thirty -two (32) ounce size) for a period in excess 
of six (6) months from date of shipment. This provision does not 
prohibit the reconditioning of olives upon which the cost of trans- 
portation and reconditioning is defrayed bj the buyer. 

(b) Bulk Olives. — No member of the mdustry shall guarantee 
bulk olives against spoilage. Sellers shall guarantee that bulk olives 
are in good condition, and well coopered when shipped. 



14 

10. Allowances. — ^No member of the industry shall make an allow- 
ance (1) for broken bottles, bottles without caps if identified only 
by labels; (2) unless he has had a reasonable opportunity to ex- 
amine the ^oods, and if goods are to be destroyed, a reasonable 
opportunity to supervise such destruction; (3) for labels "where 
products are packed under Private Label unless the label is com- 
pletely imprinted and ready for use, and if allowance is made it 
shall not be in excess of the average cost of labels to the packer. 

11. Threats of Law Suits. — No member of iho industry shall pub- 
lish or circulate unjustified or unwarranted threats of legal pro- 
ceedings which tend to or have the elt'ect of harassing competitors 
or intimidating their customers. 

12. Sea'et Relates. — No member of the industry shall secretly 
oflFer to make any payment or allowance of a rebate, refund, com- 
mission, credit, unearned discount or excess allowance, whether in 
the form of money or otherwise, nor shall a member of the industry 
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. 

13. Selling on Consignment. — No member of the industry shall 
ship goods on consignment except under circumstances to be defined 
by the Code Authority and subject to the approval of the Admin- 
istrator, where peculiar circumstances of the industry require such 
practice. 

14. Bribing 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 
represenative of another ia relation to the business of the employer of 
such employee, the principal of such agent or the represented party, 
without the knowledge of such employer, principal or party. This 
provision shall not be construed to prohibit free and general distri- 
bution of articles commonly used for advertising except so far as 
such articles are actually used for commercial bribery as hereinabove 
defined. 

15. Interference with Another's Contract. — No member of the in- 
dustry shall attempt to induce the breach of an existing contract 
between a competitor and his employee or customer or source of 
supply; nor shall any such member interfere with or obstruct the 
performance of such contractual duties or services. 

16. Coercion. — No member of the industry shall require that the 
purchase of any goods be a prerequisite to the purchase of any other 
goods. 

17. Blacklisting. — No member of the industry shall join or partici- 
pate with other members of the industry who with such member 
constitute a substantial number of members of the industry or who 
together control a substantial 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. 

Article VIII — Coordination with Other Codes 

The industry, recognizing the value of uniform basic trade practice 
provisions for all food and grocery manufacturing codes, pledges co- 



15 

operation in securing the amendment of any trade practice pro- 
visions in this Code which may be in conflict with trade practice pro- 
visions approved by the President or suggested by the Administrator 
for the entire food and grocery manufacturing industry. 

Article IX — jModificatiox 

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 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. 

Article X — Monopolies 

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

Article XI 

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



Approved Code No. 491. 
Registry No. 113-02. 



O 



Approved Code No. 492 
CODE OF FAIR COMPETITION 

FOR THE 

STEREOTYPE DRY MAT INDUSTRY 

As Approved on July 27, 1934 



ORDER 



Code of Fair Competition for the Stereottpe Dry Mat 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 Stereot3qDe Dry Mat Industry, and a hear- 
ing 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 belialf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate, by reference, said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act; and do hereby order that said Code 
of Fair Competition be and it is hereby approved; PROVIDED 
that the provisions of Article VI, Section 5, insofar as they pre- 
scribe a waiting period between the filing with the Code Authority 
(i.e. actual receipt by the Code Authority) and effective date of 
revised price lists or revised terms and conditions of payment be and 
they are hereby stayed pending my further order; provided further 
that with respect to Article IV, Section 1, the Code Authority shall 
make a study to determine the advisability^ of an upward revision 
of the hourly rate for female employees and shall make a report 
on such study to the Administrator within 90 days after the effective 
date of this Code. 

Hugh S. Johnson, 
Administratoi' for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Adnunistrator. 

Washington, D.C, 

Jidy 27, 193.\. 

76460° 829-lCO 34- (17) 



EEPORT TO THE PRESIDENT 

The President, 

White House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Stereotype Dry Mat Industry, conducted in Washington 
on May 3, 1934, in accordance with the provisions of Title I of the 
National Industrial Recovery Act. 

HOURS AND WAGES 

This Code i)rovides a standard forty (40) hour week for factory 
workers with a weekly tolerance of eight (8) hours to be paid for 
as overtime. The usual exceptions are made in regard to non- 
productive employees and employees engaged in continuous process 
operations. 

The minimum wage rate for hourly paid emploj'ces is 40^ per 
hour for males and 32i/2V^ for females. Office employees will receive 
a minimum of $16.00 per week, except for 5% of such class of 
employees who may be compensated at the minimum return of 
$14.00 per week. 

OPEN PRICE PLAN 

An open price plan of selling is provided and selling below cost, 
except to meet competition, is proliibited. 

OTHER PROVISIONS 

Provision is made for furnishing the Administrator with such 
statistical data as he may require, and for the adoption of a uniform 
contract form which shall be subject to the disapproval of the 
Administrator. 

ECONOMIC EFFECT OF THE CODE 

The Industry employed in 1929 about 200 persons. Sales were 
approximately $1,900,000.00. As a result of the President's Re- 
Employment Agreement employment was increased approximately 
20% in November 1933, in spite of decreased man hour requirements 
which were about 40% less in 1929. 

As a result the total increase in salaries in the Industry will be 
about 25%. 

FINDINGS 

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

(18) 



19 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanction and supervision, 
by eliminating unfair competitive practices, by promoting the full- 
est possible utilization of the present productive capacity of indus- 
tries, by avoiding undue restrictions of production (except as may 
be temporaril}' required), by increasing the consumption of indus- 
trial and agi'icultural products through increasing purchasing power, 
by reducing and relieving unemployment, by improving standards 
of labor, and by otherwise rehabilitating industry. 

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

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

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

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

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

For these reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
July 27, 1934. 



CODE OF FAIR COMPETITION FOR THE STEREOTYPE 
DRY MAT INDUSTRY 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, tlie following is hereby established as a Code of Fair 
Comi^etition for the above named Industry and shall be binding on 
every member thereof. 

Article I — Defixittgns 

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

'• Industry "' — The manufacture for sale of stereotype dry mats, 

" Member " — A natural person, partnership, corporation, asso- 
ciation, trust, trustee, trustee in bankruptcy, receiver, or other form 
of enterprise engaged in such industry. 

" Employee " — Any and all persons enga«jed in the industry how- 
ever compensated, except a member of the industry. 

" Employer " — Anyone by whom such employee is compensated or 
emj)lo3-ed. 

'' President ", "Act ", and "Administrator " — Respectively the 
President of the United States, Title I of the National Industrial 
Recovery Act, and the Administrator for Industrial Recovery. 

Article II — Organization, Powers and Duties of the Code 

Authority 

organization and constitution 

Section 1. There is hereby established a Code Authority of four 
members, one representative from each unit, the method of election 
of whom shall be approved by the Administrator. The term of 
office ^f each member shall be for one year and until the election of 
his successor. If in the event new units shall be added to the Indus- 
try, a new plan of procedure for the election of such members sliall 
be submitted to and approved by the Administrator. 

Section 2. In addition to membership as above provided, there 
may be one member, without vote, to be known as Arlministration 
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 restricti(ms 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, or- 
ganization, and activities as the Administrator may deem necessary 
to effectuate the purposes of the Act. 

(20) 



21 

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 Cotle 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 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 numner to any- 
one for an}' act of any other member, oflicer, 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 an^^one for any action or omission to act under 
this Code, except for his own wilful malfeasance or non-feasance. 

Section 5. If the Administrator shall at any time determine that 
any action of a Code Authorit}^ or any agency thereof may be unfair 
or unjust or contrary to the public interest, the Administrator may 
require that such action be suspended to afford an opi)ortunity for 
iuA^estigation 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. 

rOWEKS AND duties 

Section 7. Subject to such rules and regulations as may be issued 
by the Administrator, the Code Authority shall have the following 
powers and duties, in addition to those authorized by other provi- 
sions of this Code. 

(a) To insure the execution of the provisions of this Code and 
to provide for the compliance of the 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 noth- 
ing in this Code shall relieve any member of the Industry of any 
existing obligations to furnish reports to any Government agency. 
No individual report s-hall 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 the provisions hereof. 



22 

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

(f) It being found necessary in order to support the administra- 
tion of this Code and to maintain the standards of fair competition 
e.'^tablished hereunder and to effectuate the policy of the Act, the 
Code Authority is authorized: 

1. To incur such reasonal^le oblij^ations as are necessaiy 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 purpose3 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 e.xpeuvses for the foregoing 
purposes, and (2) an equitable basis upon which the funds necessary 
to support such budget shall bo contributed by members of the 
industry ; 

3. 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 members of the Industry, and to that 
end, if neces^sary, to institute legal proceedings therefor in its own 
name. 

4. Each member of the Industry shall pay his or its equitable con- 
tril)ution 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 contributino; to 
the expense 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. 

5. The Code Authority shall neither incur nor pay any obligation 
in excass 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 reconmiend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provisions 
to govern members of the Industry in their relations with each other, 
or with other industries; measures for industrial planning, and 
stabilization of employment; and including modifications of this 
Code which shall become effective as part hereof upon approval by 
the Administrator after such notice and hearing as he may specify. 

(h) To appoint a Trade Practice Committed} which shall meet 
with the Trade Practice Committers appointed under such other 
codes as may 1)C 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 
such fair trade ])ractices may be proposed to the Administrator as 
amendments to this Code and such other codes. 



23 

(i) To provide appropriate facilities for arbitration, and sub- 
ject to the approval of the Administrator, to prescribe rules of proce- 
dure and rules to effect compliance with awards and determinations. 

Articl-e III — Hours of Labor 

Section 1. Emploj^ees in the Industry shall not be required to 
work or permitted to work hours in excess of the limits prescribed in 
the following schedule: 

^a) Watchmen: Fifty-six (5G) hours in any one week. 

(b) Chauffeurs, truck drivers, and their helpers: Not to exceed 
ten (10) hours in any one day or forty-five (45) hours in any one 
week ; provided, however, that time may be worked in excess of these 
limitations if such overtime is paid for at not less than time and 
one-third. 

(c) Engineers and electricians: Not to exceed nine (9) hours in 
any one day or forty-five (45) hours in any one week; provided, 
however, that time may be worked in excess of these limitations it 
such time is paid for as not less than time and one-third. 

(d) Tour workers in continuous process operations: Eight (8) 
hours in any one day and forty (40) hours in any one week; pro- 
vided, however, that additional hours up to a total of forty-eight 
(48) hours per week may be worked at basic hourly rate (1) to 
avoid shutdowns due to temporary absence of a relief worker; (2) 
in changing wires and machine clothing; (3) in clean-ups, wash-ups, 
and adjustments in cases where such work cannot be done while the 
machines are in operation; provided further, that with the excep- 
tions herein allowed all other employment for such tour workers in 
excess of eight (8) hours in any one day and forty (40) hours in 
any one week shall be paid for at not less than time and one-third. 

(e) All other laborers, mechanical workers, or artisans employed 
in any plant, mill, or factory or on work connected with the opera- 
tion of such plant, mill or factory: Eight (8) hours in any one day 
and forty (40) hours in any one week, provided, however, that these 
maximum limits may be exceeded in cases of sea.sonal demand or 
peak loads where restrictions of hours would unavoidably reduce 
production, provided, that all time worked in excess of ei^ht (8) 
hours per day and forty (40) hours per week shall be paid for as 
not less than time and one-third, and provided, further, tha,t no 
employees shall be required or permitted to work in excess of forty- 
eight (48) hours in any one week. 

(f) Employees regularly engaged in a managerial, supervisory, 
research or executive capacity, receiving thirty-five ($35.00) dollars 
or more per week, and outside salesmen : No limitation. 

(g) Office employees: One hundred sixty (160) hours in any 
period of four (4) consecutive weelts, but not to exceed forty-eight 
(48) hours in any one week. 

Secitox 2. No employee of the classes included under Section 1 
(a), (b), (c), (d), (e), and (g) of this Article shall be required or 
permitted to work more than six (6) days in any period of seven 
(7) consecutive days. 

Section 3. No limitation contained in said schedule shall apply 
to employees of any class when engaged in emergency repairs or 



24 

emergency maint<^nancc work occasioned by breakdoAYns or involv- 
ing protection of life or property; provided, however, that time 
worked in excess of the limitations specified in said schedule shall be 
paid for as not less than time and one-third. 

Section 4. No employer shall permit any employee to work for any 
time which, when totaled with that already performed with another 
emplo3'er or employers, exceeds the maximum permitted herein. 

Sfxtiox 5. No female employee shall be required or permitted to 
work between the hours of 10 P.]\L, and T A.M. 

Article IV — Wages 

Section 1. The minimum rate of wage of any cm])loyee, other than 
office or clerical employees, employed in any plant, mill or factory 
or on work connected with the operation of any such plant, mill or 
factory shall be as follows : 

]\lale — 40 cents per hour. 

Female — 321/2 cents per hour.^ 

Section 2. The minimum rate of wage for any office or clerical 
employees shall be sixteen ($16.00) dollars per week, provided how- 
ever, that office boys or girls and messengers, constituting not more 
than five per cent of such class of employees, or at least one in 
number, may be compensated at the minimum rate of fourteen 
($14.00) per week. Part-time employees covered by the provisions 
of this Section shall be paid at the rate of not less than forty (40^) 
per liour. 

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

Section 4. The wage rates of all emploj'ees shall be reviewed and 
adjustments made therein, if equitable, but in no case shall they be 
decreased. Within sixty (CO) daj-s after the effective date hereof, 
the Code Authority shall report to the Administrator the action 
taken by all members of the Industry under this Section. 

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

Section 6. A person whose earning capacity is limited because 
of age or physical or mental handicap may be employed on light 
work at a wage below the minimum established by this Code if the 
employer obtains from the State authority designated by the United 
States Department of Labor a certificate authorizing his employment 
at such wages and for such hours as shall be stated in the cei'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 employees. 

Auticle V — General Laror Provisions 

Section 1. Xo person under sixteen (IG) j'ears of age shall be 
employed in the Industry. No person under eighteen (18) years 
of age shall be emplo^'^ed at operations or occupations which are 
hazardous in nature or dangerous to health. The Code Authority 



* See paragraph 2 of order approving this Code. 



25 

shall submit to the Administrator within sixty (60) days after the 
effective date of this Code a list of such operations and occupations. 
In any State an employer shall be deemed to have complied with 
this provision as to age if he shall have on tile a certificate or permit 
duly signed by the authority in such State empowered to issue em- 
ployment or age certificates or permits, showing that the employee 
is of the required aije. 

Section 2. Employees shall have the right to organize and bar- 
gain collectively through representatives of their own choosing, and 
shall be free from the interference, restraint or coercion of employers 
of labor, or their agents, in the designation of such representatives 
or in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. No em- 
ployee and no one seeking employment shall be required as a condi- 
tion of employment to join any company union or to refrain from 
joining, organizing or assisting a labor organization of his own 
choosing. Employers shall comply with the. maximum hours of 
labor, minimum rates of pay and other conditions of employment 
approved or prescribed by the President. 

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

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

Section 5. All employers shall post copies of Article III, IV, and 
V of this Code in conspicuous places accessible to employees and 
comply with all other posting rules and regidations i&sued by the 
Administrator. 

Section 6. Every employer shall make reasonable provisions for 
the safety and health of his employees at the place and during the 
hours of their employment. Standards for safety and health shall 
be submitted by the Code Authority to the Administrator within 
three (3) months after the effective date of this Code. 

Section 7. The manufacture or partial manufacture of any prod- 
uct of the Industry in homes shall be prohibited, except in accordance 
with the provisions of the Executive Order of the President, dated 
May 15, 1934. 

Section 8. The Code Authority shall make a study of conditions 
in the Industry to determine the feasibility of the adoption of a 
shorter worldng week and shall, within three (3) months after the 
effective date of this Code, make a report of its findings to the Ad- 
ministrator. The Code Authority shall also submit to the Adminis- 
trator within six (6) months after the effective date of this Code a 
plan fpr the stabilization and reg-ularization of employment. 

Article VI — Accounting — Selling 

Section 1. The Code Authority shall, as soon as practicable, cause 
to be formulated an accounting system and methods of cost finding 
and/or estimating capable of use by all members of the Industry. 



26 

After such system and methods have been formulated and approved 
by the Administrator, full details concerning them shall be made 
available to all members. Thereafter all members shall determine 
and/or estimate costs in accordance with the principles of such 
methods. 

Section 2. The Code Authority may from time to time determine 
that an open price plan of selling such product or products of the 
Industry as it shall specif}' shall be put into eifect on such date as it 
shall fix. Notice of such determination shall be announced to all 
known members of the Industry who manufacture such products not 
less than thirty (30) days prior to the date so fixed. 

Section 3. At least ten (10) days prior to such date, every mem- 
ber sliall file with the Code Authority a .schedule of prices and terms 
of sale for all such products or, in the alternative, shall be deemed 
to have filed a schedule conforming in respect to price and terms of 
sale with the schedule at any time on file which states the lowest 
price and the most favorable terms. 

Section 4. All schedules .shall be in such form as the Code Au- 
thority shall prescribe and shall contain all information necessary 
to permit any interested person to determine the exact net price per 
unit to the purchaser of any products of the Industry. All such 
original schedules shall beeome effective on the date fixed by the 
Code Authority as provided in Section 2 hereof. 

Section 5. An originiil schedule, a revised schedule or schedules, 
or a new schedule or schedules, or a notice of withdrawal of a sched- 
ule ])reviously filed, may be filed by a member with the Code Au- 
thority at any time, provided, how^ever, that any member who with- 
draws a schedule without substituting a new schedule therefor shall 
be deemed to have filed a schedule conforming in respect to price and 
terms of sale with the schedule at any time thereafter on file which 
states the lowest price and the most lavorable terms. Any schedule 
or notice filed hereunder, shall become effective ten (10) days after 
date of filing, provided, hoAvever, that an increased price may become 
effective at such earlier date as the member filing the same shall fix.^ 

Section 6. The Code Authority shall promptly supply all members 
of the Industry who manufacture any particular product with copies 
of all schedules, revised schedules, and notices of withdrawal, which 
pertain to such product. Immediately upon receipt of information 
relative to the withdrawal of a price for any product, any member 
may file notice of withdrawal of his own price for the same product 
effective as of the same date as the notice of withdrawal of such 
other member. Immediately on receipt of information that a sched- 
ule then on file has been revised, or that a new schedule has been 
filed, any member may file a revised schedule conforming as to price 
and terms to the schedule of such other member and eifective on the 
same date, or he may notify the Code Authority that he adopts as his 
own the schedule of such other member. In the latter event, he shall 
be deemed to have filed a revised schedule conforming to the revised 
schedule of such other member. 

Section 7. No such schedules of prices and terms of sale filed by 
any member, or in effect at any time, shall be such as to permit the 
sale of any product at less than the cost thereof to such member 



» See paragraph 2 of order approving this Code. 



27 

determined in the manner provided in Section 11 hereof, provided, 
however, that any member may, by notice to the Code Authority, 
adopt as his own a lower price filed by another designated member. 
Such adoption shall become automatically void upon the withdrawal 
or revision upward of the price adopted. 

Section 8. No member, v.ho shall have filed a price or adopted as 
his own a price filed by another member for any product of the In- 
dustry shall sell such product for less than such price or upon terms 
or conditions more favorable than stated in such price schedules. 
No member, who shall have failed to file a price for any product for 
which the open price plan is in effect, shall sell such product at a 
lower price or on terms more favorable than the lowest price and 
most favorable terms stated in any price schedule for such product 
then on file. 

Section 9. The Code Authority shall furnish at cost to any person 
concerned, whether member or non-member requesting them, copies 
of any price schedules which have been filed with it. Such price 
schedules shall be made available to non-members at the same tijne 
that the}' are sent to members. 

Section 10. No member shall sell any product of the Industry 
for which no open price plan is in effect at less than the cost thereof 
to such member, determined as provided in Section 11 hereof, except 
to meet the price of a competitor whose price does not violate such 
Section. 

Section 11. Cost, for the purposes of this Article, shall be deter- 
mined pursuant to the method of accounting and costing prescribed 
as provided in Section 1 hereof as soon as such method is adopted 
and approved, and theretofore pursuant to the method employed 
by such member subject to such preliminary rules as the Code Au- 
thority shall from time to time prescribe with the approval of the 
Administrator. 

Section 12. Every member sliall upon the request of the Code 
Authority furnish a designated agency of the Code Authority in 
respect to closed transactions only, with complete information in 
regard to any quotation, order, contract, or sale of any product of 
the Industry, including information as to specifications, quantities, 
price, conditions of storage, transportation or delivery, terms of 
billing, cash or trade discounts allowed and other pertinent facts 
relating to such quotation, contract or sale. 

Section 13. Every member filing a schedule or notice hereunder 
shall deliver to the Code Authority without expense such number 
of copies thereof as shall be necessary to enable the Code Authority 
to supply one copy thereof to each member of the Industry and 
no such schedule or notice shall be deemed to have been filed until 
such number of copies shall have been received by the Code 
Authority. 

Section 14. Nothing herein contained shall be construed to pre- 
vent the distribution of distress merchandise required to be sold to 
liquidate a defunct or insolvent business or of discontinued lines, 
damaged goods or seconds, in such manner, at such price, and on 
such terms and conditions as the Code Authority may approve. 

Section 15. Nothing herein contained shall be construed to pre- 
vent the fulfillment of a bona fide contract existing on the effective 
date of this Code. 



Sectiox 16. Nothing lierein contained shall be construed to permit 
discrimination between like purchasers for like quantities. 

Section IT. The Code Authorit}'' may, at any time, suspend the 
open price plan of selling either in its entirety or insofar as it 
applies to any specified product or products of the Industry. 

Section 18. No provision of this Code relating to prices or terms 
of selling, shipping or marketing, shall ai)ply to sales or shipments 
for export. ^* Export" sluiU mean trade between the United States 
or any possessions thereof (excei)t the Philippine Islands, the Vir- 
gin Islands, American Samoa, and the Island of Guam) and any 
foreign country. 

Article VII — Monopolies 

Section 1. No provision of this Code shall be so applied as to 
permit mono]X)lies or monopolistic practices, or to eliminate, oppress 
or discriminate against small enterprises. 

Article VIII — Recommendations 

Section 1. The Code Authority may from time to time present 
to the Administrator recommendations based on conditions in the 
Industry wliich will tend to effectuate the operation of this Code 
and the policies of the Act. Such recommendations when approved 
by the Administrator, after such notice and hearing as he shall pre- 
scribe, shall have the same force and effect as other provisions of 
this Code. 

Article IX — Trade Practices 

Section 1. No member of the Industry shall practice deception or 
discrimination in regard to that which is sold or its selling price by 
false or misleading description, statement, record, or undisclosed 
consideration. 

Section 2. No member of the Industry shall willfully defame a 
competitor by words or acts which call into question his business 
integrity, his ability to ])erform his contracts, his credit standing, or 
the grade, quality or reliability of his product. 

Section 3. No member of the Industry shall willfully induce or 
attempt to induce the breach of a competitor's contract. 

Section 4. No member of the Industry for the deliberate purpose 
of injuring a competitor in business shall entice away any employee 
of such competitor, provided, however, that nothing contained herein 
shall prevent an eniploj'ee of one member from offering his services 
to a competitor, nor prevent any member from employing the em- 
ploj'ee of another member. 

Section 5. No member of the Industry shall sell stereotype dry 
mats in quantit}^ amounts at discount on terins different from those 
specified in the uniform sales contract form to be prescribed by the 
Code x\uthority and adopted by the individual members of the Indus- 
try; which uniform contract form shall be effective thirty (30) days 
after the effective date of this Code, unless disapproved by the 
Administrator, 

Section 6. Until the Code Authority and the members have acted 
under Section 5 of this Article, quotations and sales of any product 
of the Industry shall be subject to the following rules: 



29 

(a) Terms of sale shall be thirty (30) days net. 

(b) All quotations shall be made on an F.O.B. mill basis. 
Section 7. No member of the Industry shall make or offer or 

allow to be made or offered any rebate, refund or other concession of 
discriminatory nature, specifically including unearned discounts or 
commissions. 

Section 8. No meml)er of the Industry shall dump or sell at a 
reduced price any surplus product of the Industry for the purpose of 
injuring a competitor. 

Section 9. No member of the Industry shall sell syndicate mats 
and/or newspaper mats at a discount in an amount less than 20,000 
and 100,000 respectively, and then only if (a) the products so sold 
are to be delivered within twelve (12) months from the date of 
contract; (b) such contracts are to be made only with individual 
newspapers, sj^ndicates or commercial shops and/or chains of such, 
who have central purchasing offices and/or agents, which central 
purchasing office and/or agents assume full financial responsibility 
for purchases; (c) no member of the Industry shall knowingly sell 
syndicate mats to a newspaper for use in the direct production of 
such newspaper. 

Section 10. Immediately after this Code shall have become effec- 
tive each member of the Industr}^ shall file with the Code Authoi-ity 
a list of all bona fide contracts and/or so called indeterminate con- 
tracts then existing between such member and his customers. Copies 
of all such contracts entered into after the effective date of this Code 
shall immediately upon their signing be filed by each member with 
the Code Authority. 

Section 11. No member of the Industry shall guarantee to under- 
sell a competitor. 

Section 12. 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 rep- 
resentative of another in relation to the business of the employer 
of such employee the principal of such agent, or the represented 
party, without the knoAvledge of such employer, principal or party. 
The foregoing provisions shall not be construed to prohibit free and 
general distribution of articles commonly used for advertising except 
so far as such articles are actually used for commercial bribery as 
herein defined. 

Article X — General Provisions 

Section 1. If any member is also a member of another Industry, 
the provisions of this Code shall apply to and affect only that part 
of his business which is included in this Industry. 

Section 2. Any work or process incidental to and carried on by a 
meml>er at his plant as a part of the manufacture of any product of 
the Industry, shall be regarded as a part of this Industry. 

Section 3. The Code Authority may secure current information 
regarding the competition in domestic markets of imported dry 
mats, and if it shall find that such dry mats are being imported into 
the United States in substantial quantities or in increasing ratio to 
domestic productions, and on such terms or under such conditions as 
to render ineffective or seriously endanger the maintenance of this 



30 

Code, it may complain to the President pursuant to the provisions 
of Section 3 (e) of the Act and petition for suitable restrictions on 
the importation of such dry mats. 

Section 4. 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 or eliminated as changes in circumstances or 
experience may indicate. 

Section 5. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of Section 10 (b) of the Act, from time to time to cancel 
or modify any order, approval, license, rule or regulation issued 
under Title I of said Act, and specifically, but without limitation, to 
the right of the President to cancel or modify his approval thereof. 

Section 6. This Code shall become effective on the second Monday 
after the date upon which it shall be approved by the President. 



Approved Code No. 492. 
Registry No. 503-01. 



O 



Approved Code No. 493 
CODE OF FAIR COMPETITION 



FOR THE 



INDUSTRIAL OIL BURNING EQUIPMENT 

MANUFACTURING INDUSTRY 

As Approved on July 30, 1934 



ORDER 



Approving Code of Fair Competition for the Industrial Oil 
Burning Equipment Manufacturing Industry 

An application having been, dnly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 10, 1933, for approval of a Code of 
Fair Competition for the Industrial Oil Burning Equipment Manu- 
facturing Industry and hearings having been duly held thereon and 
the annexed report on said Code, containing findings with respect 
thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said 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 liereby order that said Code of Fair 
Competition be and it is hereby approved. I do hereby further 
order that the Industrial Oil Burning Equipment Manufacturing 
Industry and its members be hereafter exempted from the provisions 
of the Oil Burner Industry Code. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division Adnmiistrator. 

Washington, D.C, 

July 30, 193i. 

77109° 820-170 34 1 (31) 



EEPOET TO THE PRESIDENT 

The President, 

The White House. 
Sin: This is a report on the Code of Eair Competition for the 
Industrial Oil Burning; Equipment Manufacturing Industry as 
revised aft<^r a })uhlic hearing, conducted thereon in Washington, 
D. C. on July 10, 1934, in accordance with the provisions of the 
National Industrial Recovery Act. 

PROVISIOXS AS TO WAGES AISD IlOUJfS 

All employees shall ! e paid a minimum rate of forty cents per hour 
except handicapped Avorkers, when properly certified. Accounting, 
clerical and office employees may he jiaid at n(>t less than fifteen 
dollars per week. Office boys and girls may be paid not less than 
eiglity percent of this last rate and shall not exceed, in any calendar 
month, five percent of the total office employees of the employer 
except that an^^ employer may employ at least two such persons. 
Commission sales people are excepted from these minimum wages. 

Fort}' hours shall be the maximum number of working hours for 
any week and eight hours for any day except that, during not to ex- 
ceed six weeks in any six months' period, forty eight hours in one 
Aveek 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 emploj^ed in man- 
agerial, executive, or supervisory capacity who regularly receive 
thirty-five dollars or more per week and traveling salesmen are 
excepted from this provision. 

Employees engaged in em,ergency maintenance or emergency re- 
pair work involving breakdowns or the protection of life or prop- 
erty are excepted provided, however, that one and one-half tim-es 
the normal rate of pay shall be paid for all time in excess of eight 
hours per day and forty hou.rs per week. Shipping clerks and out- 
side deliveiymen are excepted and may be permitted to work forty- 
five hours per week except that during not to exceed six weeks in 
any six months' period, forty -eight hours in one week shall be per- 
missible providing one and one-half times the normal rate of pay 
shall be paid foi- all time in excess of eight hours per day and forty 
hours per week. AVatchmen are excepted and may be })ermitted to 
work fifty-six hours per week. No employer .shall knowingly j)er' 
mit any employee to work for any time which, when totaled with 
that already performed with another em])loyer or employers, exceeds 
the maxima permitted herein. No employee shall be permitted to 
work more than six days in any seven day period. 

(32) 



33 

ECONOMIC EFFECTS OF THE CODE 

The economic welfare of tliis industry largel}'^ depends on the 
revival of capital investment^ partly on revival of construction ac- 
tivity. Industrial Oil Burning Equipment is used in generating 
heat and/or power for steamships, power-plants, locomotives, dis- 
tilleries, breweries, industrial plants, etc. The Unit Equipment de- 
fined is used in various types of construction activity and in the arts 
and industry. 

Annual dollar sales have decreased about twenty percent from 
1928 to W.VA. Invested capital has decreased about eight percent 
during the same period. The number of wage earners emploj^ed 
by this industry decreased about eight percent during the same 
period, an increase having been made from 1932 Ioav of about two 
percent the latter part of 1933. It is estimated that the industry 
employed 440 wage earners in 1928. 

No large further increase in employment is anticipated under 
the maximum hourly provision of the Code as, although tliere was 
an increase in employment under the President's Reemployment 
Agreement, the industry is not working in excess of the maximum 
hours specified. Trade practice provisions of the Code are expected 
to remedy many of the evils that have been prevalent in the past 
within this 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 pro- 
ceedings in this matter : 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce wdiich tend to diminish the amount thereof and will pi*o- 
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 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 reliabilitating industry. 

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

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

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



34 

(e) Those engagfed in other steps of the economic process have not 
been deprived of the rit>ht to be hoard prior to approval of said 
Code. 

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

Hugh S. Johnson, 

Admdnistrator. 
July 30, 193-1. 



CODE OF FAIR COMPETITION FOR THE INDUS- 
TRIAL OIL BURNING EQUIPMENT MANUFACTURING 
INDUSTRY 

AuTiCLE I — Purposes 

To effectuate the policies of Title I of the Natiojial Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Industrial Oil Burning Equipment Man- 
ufacturing Industry, and shall be the standard of fair competition 
for such industry and shall be binding upon every member thereof. 

Article II — Definitio>s 

Section 1. The term " Industrial Oil Burning Equipment Manu^ 
facturing Industry " as used herein includes the manufacturing, 
selling, and/or furnishing of " manufacturer-installation-service 
or •' manufacturer-installation-engineering and/or supervisory-serv- 
ice " of, oil burners and/or oil burning equipment including acces- 
sories which are not for general purpose and/or use but which are 
essential to their operation, either fixed or portable, and/or of the 
vaporizing, steam, air, gas or mechanical atomizing type, designed 
primarily for : 

(a) Generating heat or power for naval vessels, merchant-marine 
vessels and yachts, stationary power plants, railroad locomotive^ 
when manufactured, sold and/or furnished, by others than manu- 
facturers of locomotives, oil refineries, sugar refineries, distilleries, 
breweries, and other similar purposes. 

(b) For heat application and/or processing in the arts and in- 
dustries and/or for use either in production or repair processes in- 
cluding fire pot-s, blow torches, portable torches, melting furnaces, 
tar kettles, concrete heaters, salamanders, brazing and rivet forges, 
asphalt tool heaters and surface heaters, wood burners, steamers, 
soldering-iron heaters, and other similar devices. 

(c) For all other purposes exclusive of heating by means of units 
designed primarily as, and generally known as, domestic oil burners 
and exclusive of burners designed primarily for lighting and cook- 
ing, together with auxiliary control and equipment; exclusive of 
all burners, built in and forming integral parts of furnaces or 
boilers and sold as a component part thereof and the replacement 
or repair or servicing of same by the manufacturer of such unit 
equipment; and such branches or subdivisions of this industry as 
may from time to time be included under the provisions of this Code. 

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

(35) 



3G 

Section 3. The term '* employer "' as used herein inchules anj'one 
by whom any such emploj'ee is compensated or employed. 

Sectiox 4.' The term "'member of the industry " includes anyone 
enga<;ed in the industry as above defined, either as an employer or 
on his own behalf. 

Sectiox 5. Tiie term "Association " as used herein shall mean the 
Industrial Oil liiirnin<i- Equipment Association. 

Sectiox G. The terms ■' President '', '' Act ", and '' Administrator " 
as used herein shall mean respectively the President of the United 
States, Title I of the National Industrial liecovery Act, and tho 
Administrator for Industrial Recovery. 

Article III — Hours 

Sectiox 1. Xo employee shall be permitted to work in excess of 
forty (40) liours in any one week or ei<2'ht (8) hours in any one day 
except for six (G) weeks in a six (G) months period Avhen employees 
may be permitted to work not more than forty-eight (48) hours per 
week provided they are compensated by at least one and one-half 
(fi/^) times their normal rates of pay for all hours in excess of forty 
(40) per week or eight (8) per day. 

Sectiox 2. The provisions of Section 1 shall not apply to the 
following : 

(a) Persoiis employed in a managerial, executive, or supervisory 
capacity who regularly receive thirty-five dollars ($35.00) per w^eek 
or more. 

(b) Traveling salesmen. 

(c) Employees engaged in emergency maintenance or emergency 
repair work involving breakdowns or the i^rotection of life or prop- 
erty; provided, however, that any employee working in excess of 
forty (40) hours per week or eight (8) hours per day shall be 
compensated by at least one and one-half (1^/^) times his normal 
rates for all such excess hours. 

(d) Shipping clerks and outside deliverymen, who may be per- 
mitted to work forty-five (45) hours per week, except that during 
any six (G) weeks in an}' six (G) months period they may be per- 
mitted to work fort3'-eight (48) hours per Aveek. One and one-half 
(1%) times the normal rate of pay shall bo paid persons embraced 
in this subsection (d) for hours worked in excess of eight (8) hours 
l)er day and forty (40) hours per week. 

(c) Watchmen, who may be permitted to work not in excess of 
fiftj'-six (5G) hours in any one week. 

SiX'Tiox' 3. Xo emj)l()yer shall permit any emplo3'ee to work for 
any time which when combined v\-ith that performed for another 
employer or employers in this or any industry exceeds the maximum 
permitted herein. 

Sectiox' 4. No employee shall be permitted to work in excess of 
six (G) diiYH in any seven (7) day period. 

AiriTci.K IV — Wages 

Sectiox 1. (a) The minimum wage that shall be paid by any 
emplo3'er to any emidojee shall be forty cents (40^) per hour, 
except as follows : 



37 

(b) A person whose earning capacity is limited because of age or- 
physical or mental handicap may be employed on light work at a 
wage below the minimnm established by this Code if the employer 
obtains from the State authority designated by the United States 
Department of Labor a certiiicate authorizing his emploj^ment 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 b}^ him, showing the wages paid to, 
and the maximum hours of work for, sucli employee. 

(c) No clerical or office employee shall be paid in any pay period 
less than at the rate of $15.00 per week; provided, however, that 
office boys and girls may be paid not less than 80% oi such minimum 
wage, but the total number of such office boys or girls shall not 
exceed in any calendar month 5% of the total number of all em- 
ployees covered by the provisions of this paragraph except that any 
employer may employ at least two such persons as above provided ; 
and provided further, that where a State law provides a higher 
minimum wage, no person shall be paid a lower wage than "that 
required by such law within that State. 

Section 2. The wage differentials for all operations above the 
minimum shall be equitably readjusted (unless such readjustment 
has been made theretofore) and in no case shall hourly or piecework 
wages be decreased. No unfair advantage shall be taken of any 
employee in making this Code effective. Each member of the in- 
dustry shall report all such readjustments to the Code Authority 
within thirty (30) days after the effective date. 

Section 3. No employer shall contract for the fabrication and/or 
erection of any product of this Industry with any employer or em- 
ployee, except when such employer or emploj^ee agrees to comply 
with labor provisions at least as favorable as those contained in this 
Code. 

Article V — General Labor and Other Ppovisions 

Section 1. No person under the age of sixteen (16) 3-ears shall 
be employed by any member of the Industry, and no person under 
the age of eighteen (18) years shall be employed in any hazardous 
occupation. The Code Authority shall, within six months after the 
effective date of this Code, submit to the Administrator for approval 
a list of such hazardous occupations. In any state an emploj^er shall 
be deemed to have complied with this provision if he shall have on 
file a certificate or permit duly issued by the authority in such state 
empowered to issue such employment or age certificates, showing 
the employee is of the required age. 

Section 2. No employer shall reclassify employees or duties of 
occupations performed or engage in any other subterfuge so as to 
defeat the provisions of the Act or of this Code. 

Section 3. Every employer shall provide for the safety and 
health of emploj^ces during the hours and at the places of their 
employment. Standards for safety and health shall be submitted by 
the Code Authority to the Administrator for approval within six 
(G) months after the effective date of the Code. 

Section 4. No provision in this Code shall supersede any State 
or Federal law which imposes on employers more stringent require- 

77109" 829-170 34— — 2 



38 

ments as to age of employer, wages, hours of work, or as to safety, 
health, sanitary or general working conditions, or insurance, or fire 
protection, than are unposed by this Code. 

Section 5. 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 
relative to the posting of provisions of Codes of Fair Competition 
which may from time to time be prescribed by the Administrator. 

Section 6. No employee shall be discharged, demoted, or otherwise 
discriminated against by reason of making a complaint or giving 
evidence with respect to an alleged violation of this Code. 

Sectiox 7. No emploj^ee now engaged at a wage above the mini- 
mum shall be discharged and re-employed, or replaced by another, 
at a lower rate for the purpose of evading the purposes of the Act 
or the provisions of this Code. 

Section 8. Employees sluill 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 or em- 
ployers of labor, or their agents, in the designation of such repre- 
sentatives, or in self organization, or in other concerted activities 
for the purpose of collective bargaining or other mutual aid or 
protection. 

Section 9. No employee and no one seeking employment shall 
be recjuired as a condition of employment to join an}' company union 
or to refrain from joining, organizing, or assisting a labor organiza- 
tion of his own choosing. 

Section 10. Employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of employment 
approved or prescribed by the President. 

Article VI — Administration 

Section 1. To further effectuate the policies of the Act, a Code 
Authorit}^ is hereby set up to cooperate with the Administrator in 
the administration of this Code. 

(a) The Code Authority shall consist of five individuals elected, 
as hereinafter provided, by the members of the Industry who are 
eligible under sub-section (f) of Section 1 of this Article VI. The 
Administrator, in addition, may appoint not more than three mem- 
bers without vote and without expense to the Industry to serve for 
such term or terms as he may specify. 

(b) The Association is hereby designated as the agency to con- 
duct the election of the Code Authority. It shall, within ten days 
after the approval of this Code, call a meeting of the members 
of the Industry for this purpose to be held within fifteen days after 
the date of such notice. Notice of the time and place of such In- 
dustry Meeting shall be sent by mail, at least ten days in advance 
of such meeting, to all members of the Industry whose names can 
be ascertained by reasonable inquiry. Persons, in order to be eligible 
for election to the Code Authority, shall be affiliated with some 
member of the Industry and no member of the Industry shall have 
more than one representative on the Code Authority. Each member 
of the Industr}^ shall liave one vote and votes may be cast in person, 
by proxy or by letter ballot. 



39 

(c) Pending the election of the Code Authority, in the manner 
hereinabove prescribed, the Executive Committee of the Association 
shall serve as a temporary Code Authority. 

(d) 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) 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 ellectuate 
the purposes of the Act. 

(e) It being found necessary in order to suport 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 : 

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 neces- 
sary 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 m.embers of the industry, and 
to that end, if necessar}^, to institute legal proceedings therefor in 
its own name. 

(f) Each member of the industry shall pay his or its equitablo 
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, unless 
duly exempted from making such contributions, 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. 

(g) 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. 

Sectiox 2. 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 of the Industry 
or does not in other respects comply with the provisions of the Act, 



40 

"he may require an appropriate modification in the method of selection 
of the Code Aiithorit3\ 

Section 3. The Code Authoritj'', when elected in the manner 
prescribed b}' subsections (a) and (b), of section 1 of this Article 
VI 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 Authority of the Industrial 
Oil-Burning Equipment oManufacturing 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 Code Authorit}'^ as provided in 
this Code; provided further, that the Code Authority 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 Adndnistrator. 
If at any time, the Administrator shall determine that the corporate 
status assumed by the Code Authority is interfering with the proper 
exercise of its powers and duties under this Code, or with the 
ell'ectuation 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. 

Seci-iox 4. The Code Authority shall have the following duties 
and powers to the extent permitted by the Act and subject to review 
by the Administrator : 

(a) To obtain from members of the industry such information 
find 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 ma}'^ designate; provided that 
nothing in this Code shall relieve an}'^ member of the industry of 
any cxsting obigations to furnish reports to any Governmental 
agenc}'. No individual report shall be disclosed to any other member 
of the industry or any other party except to such otlicr Govern- 
mental agencies as may be directed by the Administrator. 

(b) To represent the Industry in conferring with the President 
or his agents with respect to tlie administration of this Code and 
with respect to the Act and any regulations issued thereunder. 

(c) 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. 

(d) To adopt by-laws and rules and regidations for its procedure. 

(e) To study the trade-practice provisions and the operation 
thereof, and make such recommendation from time to time to the 
Administrator as it deems dci^irable for modification of or addition 
thereto which, upon the approval of the President, after such hearing 
as he may ])rescribe, shall become a x)art of this Code and have full 

'force and effect as provisions hereof. 



41 

(f) If the Administrator shall at any time determine that any 
action of a Code Authority or any agency thereof ma}' be unfair 
or unjust or contrai'v 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 
b}' such Code Authority or agenc}^ pending final action which shall 
not be effectiA'e unless the Administrator approves or unless he shall 
fail to disapprove after thirty (30) d.ys' notice to him of intention 
to proceed with such action in its original or modified form. 

Article VIII — Trade Pkactices 

The following are declared unfair trade practices and in violation 
of this Code : 

Sectiox 1. Imitation of any trade mark, trade name, package, 
brand, model numbers v\'ith or Avithout letters, code names, descrip- 
tions, catalogs, cuts or labels of a competitor with the intent or hav- 
ing the effect of deceiving purchasers. 

Section 2. Appropriating or attempting to appropriate ideas, 
sketches, designs or drawings, originated and owned by another 
member in the Industry, without the owner's consent, with the in- 
tent or having the effect of confusing, misleading or deceiving pur- 
chasers in reference to the origin of the products. 

Section 3. The false marking, branding, or rating of any product 
of the Industry which has the tendency to mislead or deceive cus- 
tomers or prospective customers, whether as to the grade, quality, 
quantit3% substance, character, nature, origin, size, rating, capacity, 
hnish, or preparation of any product of the Industry, or otherwise. 

Section 4. No member of the industry shall defame a competitor 
by falsely imputing to him dishonorable conduct, inability to per- 
form contracts, questionable credit standing, or by other false rep- 
resentation, or by falsely disparaging the grade or quality of his 
goods. 

Section 5. No member of the industry 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 represen- 
tative 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 fre-e and general distri- 
bution of articles commonly used for advertising except so far as 
such articles are actually used for commercial bribery as herein- 
above defined. 

Section 6. Inducing or attempting to induce or being a party t-o 
the breach of an existing oral or written contract between a com- 
petitor and his customer or source of supply, or interfering with or 
obstructing the performance of any such contractual duties or 
services. 

Section T. No member of the industry shall offer or make any 
secret payment or secret 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 industr}' secretly 
offer or extend to any customer any special service or privilege not 



42 

extonrled to all customers of the same class, for the purpose of 
infiuencinir a sale. 

The settlement of old accounts for less than the full anunnit as a 
consideration for accepting; a proj^osal is prohibited under the 
meanini; of the above clause. 

Skctiox 8. (a) The use of premiums in waj's which involve com- 
mercial briberj' in any form. 

(b) The use of premiums in ways which involve lottery in any 
form. The term "lottery " shall be construed to include, but Avithout 
limitation, any plan or arrangement whereby the ju'emium offered 
differs substantially in value from customer to customer of the same 
class, except as a result of differences in quantities purchased. 

(c) The use c)f premiums in ways which involve misrepresentation, 
or fraud, or deception in any form, includino;, but without limita- 
tion, the use of the word " free ", " gift ", '' gratuity *\ or language 
of similar import in connection with the giving of premiums for 
the purpose or with the effect of misleading or deceiving customers. 

(d) The giving of jjremiums to any customers when such pre- 
miums are not offered to all customers of the same class in the trade 
area. 

Section 9. The i)ublishing or circularizing of threats of suits for 
infringement of patents or trade marks or of any other legal pro- 
ceedings not in good faith, with a tendency or effect of harassing 
competitors or intimidating their customers. 

Section 10. Securing confidential information concerning the 
business of a competitor by a false or misleading statement or repre- 
sentation or by a false impersonation of one in authorit}^ or by 
bribery or by any other unfair method. 

Section 11. No member of this Industry shall sell any combina- 
tion of products, except repair and replacement parts, manufactured 
by him, or by any owned or controlled subsidiary, at a price less 
than the sum of his established selling prices for all items included 
in such combination. 

Section 12. Xo member of the Industry shall change any quota- 
tion submitted, or accept an order at a price below the quoted price 
unless a change is made in the specifications, and, in the event of 
such cliange in any specifications, the price and terms of the new 
quotation shall be determined in the same manner as in the original 
(piotation. 

Section 13. The sale or offer of sale of any goods under any form 
of guarantee to the purchaser against either an advance or decline in 
the price of sucli goods. 

Section 14. Xo member of the Industry shall withhold from or 
insert in any quotation or invoice an}' statement that makes it inac- 
curate in any material particular. 

Section 15. No member of the industry shall require that the 
))urchase or lease of any products of the Industry be a prerequisite 
to the purchase or lease of any other goods. 

Section 16. No member of the Industry shall furnish or offer to 
furnish any shop detail drawings to a })urchaser or a prospective 
purchaser other than those essential to the prosecution of the work 
covered by a contract. 



43 

Section lY. No member of the Industry shall sell his product sub- 
ject to a warranty more favorable to the purchaser than the 
following : 

(a) No warranty to furnish })arts to replace defective material or 
workmanship shall extend beyond one (1) year from date of ship- 
ment or installation as may be agreed upon. 

(b) Replacement of defective material shall be f.o.b. point of 
shipment subj^-ct to manufacturer's inspection. 

(c) Foreign component part e(|uipment warranty shall be limited 
to the warranty of its manufacturer. 

Section 18. No member of the Industry shall nuike a guarantee 
of maintenance because of the impossibility of defining and main- 
taining the co.iditions under which such a guarantee can honestly 
be made. 

Section 19. No member of the Industry shall accept a contract 
containing a j^enalty clause either for performance of the apparatus 
sold or for time of delivery, unless the contract shall also contain 
a clause providing a bonus to the contractor at the same rate as the 
rate of penalty, except in cases where Federal, State, or Municipal 
laws necessitate otherwise. 

Section 20, No member of the Industry shall accept a contract 
containing a clause providing for liquidated damages except where 
Federal, State, or Municipal laws so necessitate. 

Section 21. Where purchaser's specifications include a bonus clause 
for performance, in excess of that guaranteed, no member of the 
Industry shall deduct from the price any bonus or portion thereof 
which he anticipates will be earned by reason of his obtaining a bet- 
ter performance than that guaranteed. 

Section 22. Where purchaser's specifications include a penalty 
clause for performance, less than that guaranteed, no member of the 
Industry shall make a guarantee in excess of that which he expects 
to obtain anticipating the acceptance of a penalty as a basis for re- 
ducing the cost to the purchaser. 

Section 23. No member of the Industry shall make any guarantee 
of performance other than to specify the range in pounds or gallons 
of fuel per hour and proper combustion thereof under proper fur- 
nace, draft, and other conditions which may be specilied by the 
manufacturer. No member of the Industry shall promise a higher 
guarantee than his previous experience leads him to believe he can 
obtain. 

Section 24. No member of the Industry shall make a deposit for 
the privilege of receiving plans and specifications and the opportu- 
nity to bid on a contract without an agreement by the issuer that 
such deposit will be returned to said member of the Industry when 
the contract has been awarded or when said plans and specifications 
have been returned by said member to the issuer. 

Section 25. No member of the Industry shall enter into a written 
or oral agreement with any person that one or more clauses of the 
contract or the specification will not be enforced, thereby receiving 
an unfair advantage over competitors. 

Section 2G. No member of the Industry shall purchase patents 
from customers, their officers, engineers, or employees, for the pur- 
pose of influencing sales to such customers. 



44 

Section 27. No member of the Industry shall cause or permit any 
conduct by any one of his employees or agents wliich would con- 
stitute a violation of this Code. 

Article IX — 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 
competition and is forbidden. Any member of the industry or of 
any other industry or the customers of either may at any time com- 
j)hun to the Code Authority that any price at which products of 
this industry have been sold constitutes unfair competition as de- 
structive price cutting, imperiling small enterprise or tending toward 
monopoly or the impaii-ment of code wages and working conditions. 
The Code Authority shall Avithin five (5) days afford an opportu- 
nity to the member filing the price to answer such complaint and 
shall within fourteen (14) days make a ruling or adjustment thereon. 
If such ruling is not concurred in by either party to the complaint, 
all papers shall be referred to the liesearch and Planning Division 
of X. R. A. which shall render a report and recommendation thereon 
to the Administrator. 

(b) When 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 i)roduct, sale 
below the stated minimum price of such product, in violation of 
Section 2 hereof, is forbidden. 

Section 2. Emergency Provmons. — (a) If the Administrator, 
after investigation shall at any time find both (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 spec- 
ified product within the industry for a period is necessary to mitigate 
the conditions ccmstituting such emergency and to effectuate the pur- 
poses of the Act, the Code Authority may cause an impartial agency 
to investigate costs and to recommend to the Administrator a deter- 
mination of the stated minimum price of the product affected by 
the emergency and thereujK)n the Administrator may proceed to 
determine such stated mininumi 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 In- 
dustrial Recovery Act, he shall publish such price. Thereafter, dur- 
ing 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 
reconsideration or the Administrator may cause any determinations 
hereunder to be reviewed or reconsidered and appropriate action 
taken. 



45 

Section 2. Cost Finding. — The Code Authority shall cause to be 
formulated methods of cost finding- and accounting ca])able of use 
by all members of the industry, and shall submit such methods to 
the Administrator for review. If approved by the Administrator, 
full information concerning such methods shall be made available 
to all members of the industry. Thereafter, each member of the 
industry shall utilize such methods to the extent found practicable. 
Nothing herein contained shall be construed to permit the Code Au- 
thority, any 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. 

Article X — jModificatiox 

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

Section 2. Such of the provisions of this Code as are not required 
to be included herein by the xict may, with the approval of the Ad- 
ministrator, be modified or eliminated in such manner as may be 
indicated bj^ the needs of the public, by changes in circumstances, or 
by experience. All the provisions of this Code, unless so modified or 
eliminated, shall remain in effect until June 16, 1935. The Code 
Authority may make recommendations for modifications. 

Article XI— Monopolies, Etc. 

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

Article XII — Effecti\tg Date 

This Code shall become effective on the tenth (10th) day after its 
approval b}^ the President. 



Approved Code No. 493. 
Registry No. 1125-04. 



O 



Approved Code No. 494 
CODE OF FAIR COMPETITION 

FOR THE 

MERCHANT AND CUSTOM TAILORING INDUSTRY 

As Approved on July 31, 1934 



ORDER 



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

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

Hugh S. Johnson, 
Admimstraior for Industrial Recovery. 

Approval recommended: 
Robert L. Houston, 

Division Administrator. 
Washington, D.C, 

Jidy 31, 1934.. 
77098° 829-179 34 3 (47) 



KEPORT TO THE PRESIDENT 

The President, 

The White Emise. 

Sm: This is a report on the Hearing on the Code of Fair Com- 
petition for the Merchant and Custom Tailoring Industry, held in 
the Auditorium of the Department of Commerce Building, on Satur- 
day, January 27, 1934. The Code which is attached was presented 
by duly qualified and authorized representatives of the Industry, 
claiming to represent seventy-six per cent (76%) of the Industry. 

In accordance with the customary procedure, every pei-son who had 
filed a request for an appearance was freely heard in public, and all 
statutory and regulatory requirements were complied with. 

THE INDUSTRY 

The Merchant and Custom Tailoring Industry includes the making 
of men's outer garments to the individual measurement of the wearer ; 
all operations are performed by hand. The typical worker in the 
Industry is called a journeyman tailor. The garments made in the 
Custom Tailoring Industry sell at a unit price between seven and 
eight times as great as tlie unit price of garments made in the Men's 
Clothing Industry. It may therefore be concluded that the products 
of the Custom Tailoring Industry are of superior quality and work- 
manship. 

In 1829 the Industry contained 11,284 firms who employed 23,277 
workers. In the year 1929 the Industry produced about 1,700,000 
garments valued at $139,000,000 or about $80.00 each. 

The Custom Tailoring Industry is subject to considerable seasonal 
variation. Customers buy twice yearly; and as the product is 
wholly made to order, no stock can be built up out of season. About 
half the volume of business is contracted in a third of the year. 

There are no reliable figures available on the number of hours 
worked per week by employees in this Industry. On the basis of 
a questionnaire sent out to 473 members of the Industry, it is esti- 
mated that there has been a fourteen and three tenths per cent 
(14.3%) increase in employment due to the President's Reemploy- 
ment Agreement. 

LABOR PROVISIONS OF THE CODE 

The Code provides that no employee may be permitted to work in 
excess of thirty-six (3G) hours in any one week or eight (8) hours 
in any twenty-four (24) hour period, except in an extreme emer- 
gency, which emergency shall be certified m writing by the con- 
sumer at the time of sale. One and one third (IV^) the normal 
rat« shall be paid for all extra work above eight (8) hours per day. 

(48) 



49 

Student apprentices may be employed for five (5) hours a day and 
twenty-five (25) hours a week. 

The minimum rate of pay for journeymen tailors shall be sixty- 
five cents (65^) an hour in an}^ city of over 100,000 population or 
in the immediate trade area thereof; sixty cents (60^') an hour in 
any city between 25,000 and 100,000 population or in the immediate 
trade area thereof; and fifty-five cents (550) in the remainder of 
the United States. 

CONSTITUTION OF THE CODE AUTHORITY 

The IMerchant and Custom Tailoring National Code Authority is 
constituted so that equitable representation will be given to all in- 
dustrial and labor groups. The Code Authority consists of thirteen 
(13) voting members distributed as follows: 

Natwnal Association of Mercliant Tailors of America 7 

Pacific Coast Merchant Tailors Association 1 

Merchant Tailor Designers Association '. 1 

Contractors 3 

Non-Association Members 1 

Journeymen Tailors Union of America 1 

Labor Advisory Board , 1 1 

OTHER PROVISIONS 

The fair trade practices are all the general provisions suggested 
by the Federal Trade Commission with the exception of a provision 
which makes it an unfair trade practice for persons not carrjdng 
a stock of woolens or trimmings to advertise themselves as Merchant 
Tailors. However, such persons may advertise themselves as 
Custom Tailors. 

FINDINGS 

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

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of 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 sanction and supervisions, by elimi- 
nating unfair competitive practices, by promoting the fullest possi- 
ble utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

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



50 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, includinc; without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant associa- 
tions are industrial associations truly representative of the aforesaid 
Industrj'; and that said associations impose no inequitable restric- 
tions on admission to membership therein. 

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

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

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

For these reasons, this Code of Fair Competition for the Merchant 
and Custom Tailoring Industry has been approved. 
Respectfully, 

Hugh S. Johnson, 

Admvnistrator. 
July 31, 1934 



CODE OF FAIH COMPETITION FOR THE MERCHANT 
AND CUSTOM TAILORING INDUSTRY 

Article I — Purposes 

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

Article II — Definitions 

Section 1. Industry. — The term "Industry " as used herein means 
the making of men's outer garments to the individual measurements 
and specifications of the wearer from patterns especially cut for the 
wearer, and the sale thereof direct to the wearer and not for resale, 
which garments are cut and designed at the retail establishment of 
the member of the Industry and finished by workmen whom such 
member of the Industry controls as to details and shaping of each 
garment. Every operation performed on the garment shall be 
strictly by hand, except for such operations as can be performed by 
the use of a plain sewing machine operated by man or electric power. 
Pressing may be done either by hand or by machine. 

Tlie Industry is not intended to include members of the Men's 
Clothing Industry generally known in that Industry by the terms 
of " tailors-to-the-trade ", " wholesale tailors ", or " direct to the 
consumer wholesale tailors ", or " special order houses ", but it is 
intended to include contractors as defined in Section 2. 

Section 2. Contractor. — The term " contractor " as used herein 
means anyone who is engaged by a Merchant or Custom Tailor and 
who supervises work in his own establishment for the purpose of 
performing any of the manufacturing activities of the Industry. 

If a contractor makes garments for a Merchant and/or Custom 
Tailor, as well as for Clothing Manufacturers, Tailors-to-the-Trade, 
Special Order Houses and/or ^^Tiolesale Tailors, such contractor 
shall be exempted from the provisions of this Code but only insofar 
as and as long as he is subject to the Code of Fair Competition for 
the Men's Clothing Industry, provided that such contractor shall 
comply with the minimum wage provisions of this Code. If a con- 
tractor works solely for Merchant and Custom Tailors, he will be 
governed by this Code. 

Section 3. Memhers of the Industry. — The term " member of the 
Industry " as used herein means anyone, without limitation, engaged 
in the Industry, as an employer or on his own behalf or as a con- 
tractor. 

Section 4. Journeyman Tailor. — The term " journeyman tailor " 
as used herein means anyone who is engaged in the Industry in per- 

(51) 



52 

fonning major operations in the making of garments, including the 
coat maker, waistcoat maker, trouser maker, breeches maker, try-on 
maker and bushelman. 

Section 5. Heifer. — The term " helper " as used herein means 
anyone engaged in the Industry in the performance of minor oper- 
ations in the making of garments, such as felling, padding, and mak- 
ing buttonholes. 

Section 6. Student Apprentice. — The term " student apprentice " 
as used herein means any unskilled person not heretofore engaged in 
the Industry who has matriculated in or graduated from a duly 
accredited trade school for whom a member of the Industry provides 
facilities or practical work in connection with his studies. Such 
practical training and instruction shall not exceed six months follow- 
ing graduation from a trade school, and there shall be no other em- 
ployees in this Industry emplo3'ed as apprentices. 

Section 7. Employee. — Tlie term employee" as used herein 
means anyone engaged in the Industry in any capacity receiving 
compensation for his services, irrespective of the nature or method 
of payment of such compensation, except a member of the Industry. 

Section 8. Employer. — The term employer " as used herein 
means anyone by whom any such employee is compensated or 
employed. 

Section 9. President., Act and the Admmhtrator. — 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 Indus- 
trial Recover}'. 

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

Section 11. Trade Area. — The term "trade area" as used herein 
means any area designated as a trade area by the Code Authority 
and approved by the Administrator. 

Article III — Hours of Employment 

Section 1. Maximum, hours. — No employee shall be permitted to 
■work in excess of thirty-six (36) hours in any one week or eight 
(8) hours in any twenty-four (24) hour period except as herein 
otherwise provided. 

Except as hereinafter provided, the hours of labor shall be between 
8 a.m. to 12 noon and 1 p.m. to 5 p.m., and no Sunday work shall be 
allowed. 

Section 2. Members of the Industry shall be permitted to work 
employees overtime at regular rates during peak seasons, the number 
of hours and the number of weeks to be determined, subject to the 
approval of the Administrator, through an agreement to be reached 
by a committee of the Code Authority appointed for this purpose 
and consisting of an equal number of representatives of industry 
and labor. 

Section 3. The maximum of eight (8) hours in any twenty-four 
(24) hour period shall be permitted to be exceeded only for extreme 
emergency orders, which emergency shall be certified in writing by 
the consumer at the time of sale ; however, in all such cases of emer- 



53 

gency work maximum hours per week shall not be exceeded. Time 
and one third (II/3) shall be paid for all extra work above eight (8) 
hours per day. If any of the emergency work is done on Sunday, 
all of those hours shall be paid for at the rate of time and one third. 

A complete report and the consumer's certification of such emer- 
gency and such excess hours shall be made to the Regional Code 
Connnittee. Failure to make such report shall be considered a viola- 
tion of the provisions of this Code. 

Section 4. No student apprentice shall be employed by any mem- 
ber of the Industry for a period in excess of twenty-five (25) hours 
in any week or five (5) hours in any twenty-four (24) hour period. 

Student apprentices may be employed only directly by a member 
of the Industry and must be paid by said member of the Industry. 
No member of the Industry shall employ more than three student 
apprentices at any one time. 

Section 5. Office help, stock clerks, salesmen, delivery men, jani- 
tors and porters shall be employed not more than forty-eight (48) 
hours in any one calendar week and not more than eight (8) hcnirs 
in any twenty-four (24) hour period. 

Section 6. Persons employed in an executive or managerial capac- 
ity are exempted from the provisions of Section 1, provided they are 
regularly paid not less than thirty-five dollars ($35.00) per week. 

Section 7. No employee shall be permitted to work more than sis 
(6) days in any one week. 

Seciton 8. An}^ person (including contractors) who does the work 
commonly performed b}' employees shall be subject to the provisions 
of this Code as to hours of labor. 

Section 9. No emploj^er shall knowingly permit any employee to 
work for anj^ time which, when added to the time spent at work for 
another employer or emploj'ers, exceeds the maximum permitted 
herein. 

Section 10. Nothing contained in the provisions of this Article 
shall be construed to replace or supersede provisions in collective 
agreements already in force with labor organizations that prescribe 
higher rates of pay or shorter hours of work than are prescribed 
herein. 

Article IV — Wages 

Section 1. The minimum rate of pay for journeyman tailors 
shall be: 

(a) Sixty-five (65^) cents per hour in any city of over 100,000 
po])ulation, or in the trade area thereof. 

(b) Sixt}^ cents (600) cents per hour in any city of 25,000 to less 
than 100,000 population not included in (a), or in the trade area 
thereof. 

(c) rift3^-five cents (55(;*) per hour in other places. 

Section 2. Wages for Helpers. — The minimum pay for helpers 
^hall be at the rate of forty cents (400) per hour. 

Section 3. War/es for student apprentices. — The minimum rate of 
pa}' for student apprentices shall be thirty cents (300) per hour for 
the first six (6) months of employment in the Industry following 
graduation from a trade school, after which they shall be rated as 
" helpers." 

7709S' 829-170 34 2 



54 

Section 4. Other Employees. — No other employee shall be paid 
at less than the rate of : 

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

(b) $14.50 per >Yeek in any city of between 250,000 and 500,000 
jDopuhition, not included in (a), or in the trade area thereof. 

(c) $14.00 per week in other places. 

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

Section 6. Female employees performing substantially the same 
work as male employees shall receive the same rates of pay as male 
employees. 

Section 7. Handicapped Persons. — A person whose earning ca- 
pacity is limited because of age or pliysical or mental handicap may 
be emploved on light work at a wage below the minimum established 
by this Oode if the employer obtains from the State authority desig- 
nated by the United States Department of Labor a certificate 
authorizing such person's employment at such wages and for such 
hours as shall be stated in the certificate. Such authority shall be 
guided by the instructions of the United States Department of 
Labor in issuing certificates to such persons. Each employer shall 
file monthly with the Code Authority a list of all such persons em- 
ployed by him. showing the wages paid to, and the maximum hours 
of work for such employee. 

Section 8. (a) No provisions in this Code shall supersede existing 
rates of pay on an hourly or piece-work basis which are higher than 
those set forth in the Code. 

(b) The weekly compensation for employment (whether based 
on a piece or time rate) now in excess of the minimum wages herein 
provided shall not be reduced, notwithstanding that the hours of 
work in any such employment may be hereby reduced, and piece 
rates shall be so adjusted that earnings at the shorter hours provided 
in this code shall be at least equivalent to those obtained under the 
longer hours heretofore prevailing. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (IG) years of age shall be 
employed in the Industry, nor shall any person under eigliteen (18) 
years of age be employed at operations or occupations hazardous 
in nature or deti-imental to health. The Code Authority shall sub- 
mit to the Administrator within six months after the effective date 
of this Code, a list of such operations or occupations. In any State 
an employer shall be deemed to have complied with the provisions 
of this Section if he shall have on file a certificate or permit, duly 
signed by the Authority in such State empowered to issue employ- 
ment or age certificates or permits, showing that the employee is 
of the age required by this section. 

Section 2. Employees shall have tlie 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 



55 

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

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

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

Section 5. No provision in this Code shall supersede any State 
or Federal law imposing on employers more stringent requirements 
as to age of emplo^'ees, wages, hours of work, or as to safety, health, 
fire, or general working conditions than are imposed by this Code. 

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

Section 7. Each employer shall comply with rules and regulations 
of the Administrator as to the posting of this Code or portions 
thereof, and related data. 

Section 8. Home Worh. — The practice of manufacturing in this 
Industry in the home or living quarters of an employee shall be 
terminated not later than four (4) months after the effective date 
of the Code; except as provided in the Executive Order of May 15, 
1934. In the meantime and until such termination the following 
rules and regulations shall govern the members of this Industry in 
relation to homework. 

(a) No member of the Industry shall permit home work in any 
home not used by such member for such purpose on the effective 
date of the Code. 

(b) Every member of the Industry shall file with the Code 
Authority a list of such home work establishments. 

(c) Every member of the Industry shall be personally responsible 
for the compliance by an employee, working in his home, with all 
the labor provisions of this Code. 

Section 9. Safety and Health. — Ever}^ employer shall make rea- 
sonable provision for the safety and health of his employees at the 
place and during the hours of their employment. Standards of 
safety and health shall be submitted by the Code Authority to the 
Administrator within six (G) months after the effective date of this 
Code. Upon approval by the Administrator such standards shall 
become operative as a part of this Code. 

Section 10. No member of the Industry shall avoid or evade the 
labor provisions of this Code by contracting his work to any person 
or persons subject to labor provisions less stringent than those pro- 
vided in this Code. 

Article YI — Administration 

To further effectuate the policies of the Act, a National Codo 
Authority is hereby constituted to cooperate with the Administratoj 
in the administration of this Code. 

Section 1. Organisation and Constitution of Code Authority.—' 
The Merchant and Custom Tailoring Code Authority shall con- 
sist of thirteen (13) members as follows: Seven (7) members to 



56 

be selected by the Executive Coniniittec of the National Association 
of Mcrchant'Tailors of America, to represent, as far as practicable, 
the different sections of the country east of the Eocky Mountains; 
one (1) member to be selected by the Executive Committ<^e of the 
Pacific Coast ISIorchants Tailors Association, to represent that sec- 
tion of the country corresponding to the twelfth (12th) Federal 
Eeserve District; one (1) member to be selected by the Executive 
Committee of the Merchant Tailor Designers Association of Amer- 
ica; one (1) member to be appointed by the Administrator to repre- 
sent the interest of the contractors in their capacity as employers 
of lal3or; one (1) member to be appointed by the Administrator, 
to represent non-members of the above-named Associations; one 
(1) member to be selected by the general Executive Board of the 
Journeyman Tailors Union of America; one (1) member to be ap- 
pointed by the Administrator on the recommendation of the Labor 
Advisory Board of the National Recovery Administration; and not 
more than three (3) additional members to be appointed by the 
Administrator, in his discretion, without vote, to serve for such 
terms as he may specify. 

The terms of the Industry members of the Code Authority shall 
be one year, or until the appointment of their successors. 

(a) Each association directly or indirectly participating in the 
selection or activities of the Code Authority sliall: (1) impose no 
inequitable restrictions on membershij), and (2) submit to the Ad- 
ministrator true copies of its articles of association, by-laws, regula- 
tions, and any amendments when made thereto, together with such 
other information as to membership, organization, and activities 
as the A<lministrator nuiy deem necessiiry to effectuate the purposes 
of the Act. 

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

(c) Regional Committee. — The Code Authority, subject to the 
apj)roval of the Administrator, shall appoint Regional Counnittees 
for major geographical sections of the country designated as follows: 
One Regional Committee for the Eastern section comprising the 
New England and Middle Atlantic States, one Regional Committee 
for the Central and Middle "West section of the country, one Regional 
Connnittee for the Southern States, and one Regional Committee 
for the "Western part of the country corresponding to the Twelfth 
Federal Reserve District. Such regional committees s])all be com- 
posed of members of the Industry who have places of l)usiness in the 
region whicli the Regional Committee is to serve. It shall be the 
function of these Regional Connnitiees to serve in an Advisory ca- 
pacity to the Code Authority in tlie administration of the Code, and 
to be the administrative agencies of the Code Authority in their 
respective Regions. It shall also be the particular duty of these 
Regional Committees to determine for their respective regions the 
seasonal peak periods defined in Article III, Section 2 of this Code, 



57 

subject to the approval of the Code Authority and of the Adminis- 
trator. The Regional Committee shall have the power to appoint 
subsidiary or local agencies for the administration of the provisions 
of this Code, subject to the approval of the Code Authority. 

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

(a) General Poxoers. — The Code Authority shall, in addition to 
the specific powers herein conferred, have all general powers neces- 
sary to assist the Administrator in the administration and enforce- 
ment of this Code. 

(b) Reports and Investigations. — The Code Autliority shall re- 
quire from all members such reports as are necessary to effectuate the 
purposes of this Code and may, upon its own initiative or upon com- 
plaint to it of any persons affected, make investigation as to the 
functioning of any provisions of the Code and report the results 
of such investigation to the Administrator, subject to such rules and 
regulations as may be prescribed by the Administrator. 

(c) The Code Authority shall require all members of the industry 
to nle with it within 30 days after this Code goes into effect complete 
schedules of their rates of pay to journeymen tailors, helpers, appren- 
tices, and contractors in their employ, and to report promptly to the 
Code Authority any changes in such schedules. 

(d) Recommendations. — The Code Authority may from time to 
time present to the Administrator recommendations based on condi- 
tions in the Industry, which will tend to effectuate the operation of 
the provisions of this Code and the policy of the Act. 

(e) (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 neces- 
sary 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 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 admmistration 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 vol- 



58 

nntary ncHvities or to make use of any emblem or insionia of the 
Xational Recover}^ Administration. 

(3) The Code Authority sliall 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. 

Section 3. In addition to the information required to be sub- 
mitted to the Code Authority, there shall be furnished to govern- 
ment agencies such statistical information as the Administrator 
ma}' deem necessary for the purposes recited in Section 3, (a) of 
the Act. 

Sechox 4. The Code Authority shall have the power under such 
rules and regulations as may be established by the Administrator 
to receive complaints of violations of this Code, make investiga- 
tions thereof, provide hearings thereon, and adjust such complaints; 
and bring to the attention of the Administrator recommendations 
and information relative to unadjusted violations. 

Section 5. The Code Authority sliall have the power 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. 

Section 6. The Code Authority, subject to the approval of the 
Administrator, shall define and determine trade areas. 

Section 7. The Code Authority shall appoint a Coordination 
Committee representing the Merchant and Custom Tailoring Code 
Authority to meet with a like committee of the Men's Clothing Code 
Authorit}' or any other related Code Authority in an endeavor to 
adjust any differences of opinion as to jurisdiction or conflicts of 
an}' nature between the various related codes. 

Section 8. The Code Authority shall appoint a trade practice 
committee which shall meet with the trade practice committees ap- 
pointed under such other codes as may be related to the Industry 
for the purpose of formulating fair trade practices to govern the 
relationships between employers under this code and under such 
others to the end that such fair trade practices may be proposed 
to the Administrator as amendments to this Code and such other 
codes. 

Section 9. If the Administrator shall determine that any action 
of the Code Authority or any agency thereof may be unfair or 
unjust or contrary to the public interest, the Administrator may 
require that such action be suspended to afford an opportunity for 
investigation of the merits of such action and further consideration 
by such Code Authority or agency pending final action which shall 
not be effective unless the Administrator approves or unless he shall 
fail to disapprove after thirty days' notice to him of intention to 
proceed with such action in its original or modified form. 



59 

Article VII — Labels 

All articles manufactured subject to the provisions of this Code 
shall bear an N.KA. label or an authorized substitute therefor, to 
symbolize to purchasers of said articles the conditions under which 
they have been manufactured. 

(a) The Code Authority shall have the exclusive right in this 
Industry to issue and furnish said labels to the members thereof. 

(b) Each label shall bear a registration number especially as- 
signed to each employer by the Code Authority and remain attached 
to such garment when sold. 

(c) Any and all members of the Industry may apply to the Code 
Authority for a permit to use such N.R.A. label, which permit to use 
the label shall be granted to them, but only if and so long as they 
comply with this Code. 

(d) Subject to the approval of the Administrator, the Code 
Authority shall establish rules and regulations and appropriate ma- 
chinery for the issuance of labels and the inspection, examination and 
supervision of the practices of members of the Industry using such 
labels. 

(e) The charge made for such labels by the Code Authority shall 
at all times be subject to the supervision and orders of the Adminis- 
trator and shall be not more than an amount necessary to cover the 
reasonable cost thereof, including the making, distribution and ad- 
ministration, and supervision of the use thereof as hereinabove set 
forth. 

Article VIII — Unfair Trade Practices 

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

Section 1. False Marking or Branding. — The false marking or 
branding of any product of the Industry which has the tendency to 
mislead or deceive customers or prospective customers, whether as 
to the grade, quality, quantity, substance, character, nature, origin, 
size, finish, or preparation of any product of the Industry, or 
otherwise. 

Section 2. Misrepresentation or False or Misleading Advertis- 
ing. — The making or causing or knowingly permitting to be made 
or published any false, materially inaccurate, or deceptive statement 
by way of advertisement or otherwise, whether concerning the grade, 
quality, quantity, substance, character, nature, origin, size, finish, 
or preparation of any product of the Industry, or the credit terms, 
values, policies, or services of any member of the Industry or 
otherwise, having the tendency or capacity to mislead or de- 
ceive customers or prospective customers. (1) The use of the 
term " Merchant Tailor " in any advertising, window sign or 
display, by any member of the Industry who does not carry a stock 
of woolens or trimmings on his premises shall be deemed mislead- 
ing and deceptive advertising. This provision is not, however, de- 
signed to restrict or hinder any Custom Tailor from advertising 
himself as a Custom Tailor where no stock of woolens or trimmings 
is carried on the premises, nor to limit a Merchant Tailor as herein 



60 

defined, from advertising himself as a Merchant or Custom Tailor or 
both. 

Section 3. C oinmercial Bribery. — The giving, permitting to be 
given, or directly offering to give, anything oi 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- 
ploj'er 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 ex- 
cept so far as such articles are actually used for commercial bribery 
as hereinabove defined. 

Section 4. Interference with C ontractual 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. The hiring away of an employee of a competitor with- 
out first permitting that employee a reasonable time to complete the 
work upon which he was engaged. 

Section 6. Secret Rebates. — The secret payment or allowance of 
rebates, refunds, commissions, credits, or unearned discounts, whether 
in the form of money or otherwise, or the secret extension to certain 
purchasers of special services or privileges not extended to all pur- 
chasers on like terms and conditions. 

Section 7. — The offering or giving of prizes, premiums, or gifts 
in connection with the sale of products, or as an inducement thereto, 
in ways which involve chance, lottery, misrepresentation, or fraud, 
or the advertising of free pressing service. 

Section 8. 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 9. Threats of Litigation. — The publishing or circularizing 
of threats of suits for infringements of patents or trade-marks or 
of any other legal proceedings not in good faith, with the tendency 
or effect of harassing competitors or intimidating their customers. 

Section 10. Espionage of Competitors. — Securing confidential in- 
formation concerning the business of a competitor by a false or mis- 
leading statement or representation, by a false impersonation of one 
in authority, by bribery, or by any other unfair method. 

Section 11. Making special or temporary wage agreements with 
employees below the prevailing scale for the purpose of offering 
Bpecial price inducements. 

Akticle IX — Modification 

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



61 

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 monop- 
olies or monopolistic practices, or to eliminate, oppress, or discrim- 
inate against small enterprises. 

Article XI — Price Increases 

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

Article XII — Effectivb Date 

This Code shall become effective ten days after its approval by 
the Administrator. 



Approved Code No. 494. 
Registry No. 272-2-05. 



O 



Approved Code No. 495 
CODE OF FAIR COMPETITION 

FOR THE 

STEEL JOIST INDUSTY 
As Approved on August 1, 1934 



ORDER 



Approving Code of Fair Competition for the Steel, Joist Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Steel Joist 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 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 following changes be, and the same hereby are made: 

(1) That Section 4 of Schedule "A", Paragraphs 1 to 21 inclusive; 
and Section 5 of Schedule "A" be, and the same hereby are eliminated. 

(2) That Section 3 (a) of Schedule ""A" be and the same hereby 
is eliminated, and in lieu thereof, the following paragraph be, and 
it is hereby inserted : 

" Until changed by amendment to the Code as hereinbefore in 
Article VI provided, the minimum rat^s of pay per hour which shall 
be paid by members of the Industry for common labor in the Indus- 
try shall be forty cents (40^*) per hour except that: In the States of 
Louisiana, Tennessee, North Carolina, South Carolina, Georgia, Ala- 
bama, Florida, Mississippi, Texas and Virginia the minimum rate 
for such workers shall be not less than thirtv-four cents (34^) per 
hour." 

(3) That Article X be, and the same hereby is, amended to read 
as follows: 

77009° 1044-C — —34 1 (63) 



64: 

" The Code shall continue in effect until June 16, 1935, or until 
any earlier date upon which the Act shall cease to be in effect. Upon 
the termination of the Code in the manner hereinbefore provided, 
all obliaations and liabilities under the Code shall cease, exce|)t those 
for unpaid assessments theretofore made in accordance with the pro- 
visions of the Code and those for liquidated damafres which may 
have theretofore accrued under any provisions of the Code." 
and provided, further, that within ninety (90) days I ma}^ direct 
that there be a further hearing on such of the provisions of this 
Code as I may designate, and that any order which I may make 
after such hearing shall have the effect of a condition on the ap- 
proval of said Code. 

Hugh S. Johnson, 
AdmimHtrator for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Administrator, 

Washington, D.C, 

August ly lOoJ^. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sik: This is a report on the Code of Fair Competition for the 
Steel Joist Industry as revised after public hearing conducted in 
Washington on December 11th, 1933, in accordance with the provi- 
sions of the National Industrial Recovery Act. 

THE INDUSTRY 

This Industry, like the Reinforcing Materials Fabricating Indus- 
try, has developed from a group of Specialists Engineering organi- 
zations developing and promoting the use of various types of steel 
joists in this country. This Code is drafted along lines paralleling 
the Reinforcing Materials Fabricating Industiy's Code. Although 
the Industry is small, the public has greatly benefited by its activities 
in promoting new products and types of construction and will no 
doubt continue to do so. 

PROVISIONS FOR HOURS AND WAGES 

Except in the case of executives, those employed in supervisory 
capacities and in technical work, receiving thirty-five dollars ($35.00) 
per week or over and those employed in emergency work involving 
breakdowns or requiring protection of life and property, employees 
in the Steel Joist Industry are limited to forty (40) hours per week 
during any one-half (i/^) calendar year, except during seasonable 
periods a maximum of forty-eight (48) hours during not more than 
six (6) weeks in any one-half (I/2) calendar year or more than eight 
(8) hours in any one (1) day, or more than six (6) days in any one 
(1) week. 

Persons employed as watchmen may be emploj'^ed not more than 
fifty-six (56) hours in any week; six (G) days in any week or ten 
(10) hours in any day. Clerical employees shall not be permitted to 
work more than forty (40) hours in any one (1) week or more than 
eight (8) hours in any one (1) day. 

No reclassification of employees for the purpose of defeating the 
purposes of the Act is permitted, and no employee is permitted to 
work more than the specified maximum hours whether for one or 
more employers. 

No person under sixteen (IG) years of age is permitted to work 
in the Industry, and no person under eighteen (18) years of age shall 
be employed in any shop. 

The Order of Approval eliminates the wage districts and rates in 
the Code which ranged from twenty-five cents (25^) to forty cents 
(40^) in twenty-one districts, and establishes minimum rates of 
thirty-four cents (34^) in the South and fort}'- cents (40^) elsewhere. 
The order also eliminates the provision whereby the Code could have 

(65) 



66 

been t^^rminat^d at the will of ninety per cent (90%) of the members 
of tlie Industry. 

ECONOMIC EFFECT OF THE CODE 

The Industry for the first ten (10) months of 1933 operated at 
about ten and one-half ])er cent (1014%) of the 1929 peak volume, 
Avhen employees numbered approximately nine hundred (900). The 
present number of employees is about nineteen per cent (19%) of 
the number employed during that periotl, or one hundred seventy- 
two (172). To increase employment to the 1929 level it would 
recpiire the 1930 volume of business and a thirty (30) hour week. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 
said Code liaving found as herein set forth and on the basis of all 
the proceedings in this matter : 
I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
conunerce which tend to diminisli tlie amount thereof and Avill 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- 
inoj unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industnes, by avoid- 
ing undue restriction of production (excei)t as may be temporarily 
required), by increasing the c(msumption of industrial and agricul- 
tural products through increasing [)urchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
b}'' otherwise rehabilitating industr3\ 

(b) Said IndiLstiy 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 provisi(ms of said Title of said x\ct, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the a[>plicant asso- 
ciation is an industrial association trul}^ representative of the afore- 
said IndiLstry; and that said association imposes no inequitable re- 
strictions on admission to memb^^rship 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 ) Tliose engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to appro\al of said Code. 

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

Hugh S. Johnson, 

A dministrator. 
August 1, 1934. 



CODE OF FAIR COMPETITION FOR THE STEEL JOIST 

INDUSTRY 

Article I — Purposes 

To efTectuate the policies of Title I of the National Industrial 
Recovery Act, the foIlowin<r provisions are established as a Code of 
Fair Competition for the Steel Joist Industrj^, and shall be the 
standard of fair competition for such industry and shall be binding 
upon every member thereof. 

Article II — Definitions 

The term " steel joist industry ' as used herein is defined to mean 
the manufacture and sale of any steel joist, which produ-ot is defined 
to mean and include any steel beam or truss shaped steel member 
suitable for supporting floors and roofs when used for floor filling 
between the main supporting girders, beams or walls. Steel joists 
ma}' be made of rolled shapes or strips of sheet steel, round bars, 
angles or specially rolled bars riveted or welded together, or by 
expanding rolled shapes, or by any other method complying with 
the requirements of the Standards Specifications of the Institute, 
provided, however, that solid web rolled structural beams or channel 
sections are not to be considered steel joists for the purpose of this 
definition or this Code. 

The term " Institute " shall mean the Steel Joist Institute. 

The term " Secretary " shall mean the secretary of the Institute 
then in office, who shall serve as an agent of the Code Authority 
in the exercise of his functions hereunder. 

The term " member of the industry " includes any individual, 
partnership, association, corporation, or other person or form of 
enterprise engaged in the industry, either as an emploj^er or on his 
own behalf. 

The term " member of the Code " shall mean any member of the 
industry who has signed and delivered to the Secretary a letter 
substantially in accordance with the form contained in Schedule 
" I> " attached hereto. 

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

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

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

Article III — Hours of Labor, Rates of Pay and Other Condi- 
tions OF Employment 

Section 1. The provisions with respect to hours of labor, rates of 
pay and other conditions of employment, set forth in Schedule "A" 

(67) 



68 

annexed hereto, ai;e hereby incorporated in and made a part of this 
Code. 

Section 2. Pursuant to subsection (a) of Section 7 of the Xational 
Industrial Eecovery xVct the following conditions are parts of this 
Code. 

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

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

(3) Employers shall comply with the maxinnun hours of labor, 
minimum rates of pay, and other conditions of employment, ap- 
proved or prescribed by the President. 

Section 8. No person under sixteen (16) years of age shall be 
employed in the industry. No person under eighteen (18) years of 
age shall be employed in any shop. 

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

Section 5. No provisions of this Code shall supersede any State or 
Federal law which imposes more stringent requirements on members 
as to age of employees, wages, hours of work, or as to safety, health, 
sanitary or general working conditions, or insurance, or fire pro- 
tection than are imposed by this Code. 

Section 6. All employers shall, post complete copies of the labor 
provisions of this Code in conspicuous places accessible to all 
employees. 

Article IV — Organization, Powers and Duties of the Code 

Authority 

organization 

Section. 1. (a) The administration of the Code shall be under the 
direction of the Code Authority which shall consist of the members 
from time to time of the Board of Directors of the Institute, and 
in addition thereto there may be not more than three (3) members 
without vote, to be a])pointed by the Administrator and to serve 
without expense to the Industry. 

(b) To the Code authority as so constituted and established the 
members of the Industry who are non-members of the Steel Joist 
Institute may, if they so desire, elect one member by a method of 
selection approved or ])rescribed by the Administrator. 

Section 2. The Institute shall (1) impose no inequitable restric- 
tions on membership, and (2) submit to the Administrator true 
copies of any Articles of Association, constitution and by-laws, reg- 
ulations, and any amendments when made thereto. 



69 

Section 3. In order that the Code Authority shall at all times be 
tnil}^ representative of the Industry and in other respects comply 
with the provisions of the Act, the Administrator may provide such 
hearings as he may deem proper and, thereafter if he shall find that 
the Code Authority is not truly representative or does not in other 
respects comply Avith the provisions of the Act, may require an 
appropriate modification in the method of its selection. 

Section 4. Nothing- contained in this Code shall constitute the 
members of the Code Authority or members of the Code partners 
for any pur})ose. Nor shall any member of the Code Authority or 
member of the Code be liable in any manner to anyone for any act 
of any other member, officer, agent, or employee of the Code Author- 
it}'^ or member of the Code. Nor shall any member of the Code 
Authority, exercising reasonable diligence in the conduct of his 
duties hereunder, be liable to anyone for any action or omission 
to act under this Code, except for his own wilful misfeasance or 
nonfeasance. 

POWERS AND DUTIES 

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

(a) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code, in accord- 
ance with the powers herein granted, and to submit the same to the 
Administrator together with true copies of any amendments or 
additions when made thereto, minutes of meetings when held, and 
such other information as to its activities as the Administrator may 
deem necessary to effectuate the purposes of the Act. 

(b) To obtain from members of the Industry, as soon as the neces- 
sary readjustments within the Industry can be made, repoiis based 
on periods of months or quarters, for use of the Code Authority and 
the Administrator in the administration and enforcement of the 
Code, and for the information of the President. All individual 
reix)rts shall be kept confidential and onh^ general summaries theerof 
may be ])ublished. 

(c) Under such rules and regulations as may be prescribed by the 
Administrator, to receive complaints of violations of this Code, make 
investigations and seek adjustments thereof and arrange and afford 
hearings for such purposes and bring to the attention of the Admin- 
istrator for prosecution, recommendations and information relative 
to unadjusted violations. 

(d) To initiate, consider and make recommendations for the 
modifications or amendment of this Code, which recommendations, 
upon the approval of the Administrator, after such notice and hear- 
ing as he ma}'^ specify, shall become and have the effect of provisions 
of this Code. 

(e) It being found necessary to support the administration of this 
Code, in order to effectuate the policy of the Act and to maintain the 
standards of fair competition established hereunder, the Code 
Authority is authorized : 

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

77G09° 1044-6 34 2 



70 

of fmids Avhich shall be held in trust for the purposes of the Code 
and raised as hereinafter provided. 

(2) To sul>mit to the Administrator for his approval, subject to 
such notice and o})portunity to be he^rd as he may deem necessary: 

(a) An itemized budget of its estimated expenses for the fore- 
l^oin^ purposes and 

(b) An equitable basis upon which the fimds necessary to 
support such bud«;et shall be contributed by all members of the 
Industry entitlcnl to the benefits accruinn; from the maintenance 
of such standards, and the administration thereof. 

(3) After such budget and basis of contribution have been ap- 
proved l)y the Administrator, to determine and collect equitable 
contributions as above set forth; and to that end, if necessary, to 
institute leixal proceedinL's therefor in its own name. 

(4) Each member of the Industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Authority 
det<'rmined 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 the 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. 

(5) 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 ])rior budget estimates except those which the Administra- 
tor shall have so approved. 

(f) 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, full information con- 
cerning such methods shall be made available to all members of the 
Industry. Thereafter, each member of the Industry shall utilize 
such methods to the extent found practicable. Nothing herein con- 
tained shall be construed to permit the Code Authority, any agent 
thereof, or any member of the Industi^ to suggest uniform additions, 
percentages or differentials or other uniform items of cost which are 
designed to bring about arbitrary uniformity of costs or prices. 

GENERAL ADMINISTRATIVE PROVISIONS 

Section 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 disapprove after thirty (30) days' notice to him of the intention 
to proceed with such action in its original or modified form. 



71 

Article V — (Trade Practice Rules 

Sectiox 1. On and after the effective date, except as may be 
required by orders, contracts, agreements or bicls made, accepted or 
then in effect, all steel joists shall be manufactured in accordance 
with the Standard Specifications for steel joists adopted by the 
Institute, December 20, 1928, and revised to date as set forth in 
Schedule " C ", or as furtlier revised by the Institute subject to the 
disapproval of the Administrator. The properties of all such joists 
shall be in accordance with the Simplified Practice Recommendation 
R94—30 of the Bureau of Standards, Department of Commerce, and 
revisions thereof, except that steel joists having a wooden nailing 
strip attached to the top chord and joists for special purposes outside 
of the range of spans and depths covered in such Recommendation 
1194—30 ma}^ be designed and manufactured according to each man- 
ufacturer's standards of size and capacit3^ 

Sectiox 2. (a) On and after the effective date all quotations of 
lump sum bids for steel joists, accessories, and/or slab centering 
materials, including nailer joists and special joists outside of the range 
of Simplified Practice Recommendation R94— 30 (all of which joists, 
accessories and materials are hereinafter sometimes collectively re- 
ferred to as steel joist materials) shall be made in accordance with 
the Code of Standard Practice of the Steel Joist Industry adopted 
April T, 1931, and revised to date as set forth in Schedule " D ", 
unless otherwise agreed as provided in paragaph 11, "SCOPE " of 
Section 1 of such Schedule " D ", except that notwithstanding the 
foregoing provisions of this Section, all such quotations of lump sum 
bids for steel joist materials shall in any event comply with the pro- 
visions of paragraphs 3.1 and 3.2 of said Code of Standard Practice. 

(b) The term " list base price " of any steel joist materials means 
the price for any such material f.o.b. basing point. 

Section 3. (a) No member of the Industry shall sell or contract 
to sell any steel joist materials for a less price than his published 
list base price plus transportation charges as provided herein. 

(b) The following places shall be the basing points for steel 
joist materials and shall be used and adhered to by each member of 
the Industry in publishing his list base prices, except as such basing 
points may be revised by the Code Authority or by the Administrator 
after consultation with the Code Authority: Pittsburgh, Pennsyl- 
vania; Chicago, Illinois; Birmingham, Alabama. 

(c) Each member of the industry shall file with a confidential and 
disinterested agent of the Code Authority or, if none be appointed by 
the Code Authorit3% then with such an agent designated by the 
Administrator, schedules showing a list base price for each variety, 
style and size of steel joists, accessories, and slab centering materials, 
including nailer joists and special joists outside of the range of Sim- 
plified Practice Recommendation R94-30, manufactured and sold by. 
him and also his charges for trucking hereinafter in this article 
referred to as ' price terms ', which schedules shall completely and 
accurately conform to and represent the individual pricing practices 
of said member. Said price terms shall in the first instance be filed 
within ten (10) days after the date of approval of this Code. Price 
terms and revised price terms shall be filed upon forms prepared 



72 ' 

Dy the Code Authority and shall become effective immediately upon 
receipt thereof by such a<2;ent. Immediately upon receipt thereof said 
agent shall by t<^le<iraph or other equally prompt means notify said 
member of the time of such receipt. Such schedules and revisions, 
together with the effective time thereof, shall upon receipt be immedi- 
ately and simultaneously distributed to all members of the Industry 
and to all of their customers who have applied therefor and have 
offered to defra}' the cost actually incurred by tlie Code Authority in 
the preparation and distribution thereof and shall be available for 
inspection b}^ any of their customers at the office of such airent. Said 
schedules or revisions or any part thereof shami not be made available 
to any person until released to all members of the Industry and their 
customers as aforesaid; i)rovided, that prices filed in the first instance 
shall not be released until the expiraton of tlie aforesaid ten (10) day 
period after the approval of this Code. The Code Authority shall 
maintain a permanen.t file of all price terms filed as herein provided, 
and shall not destroy any part of such records except upon written 
consent of the Administrator. Ui)on request the Code Authority 
shall furnish to the Administrator or any duly designated agent of 
the Administrator copies of any such schedules or revisions of price 
terms. 

(d) When any member of the Industry has revised his schedule 
of price terms, such revision shall remain in effect for a period of 
not less than twenty (20) days, subject, however, to the right of such 
member of the Industry to file a new or revised schedule at some 
earlier date to meet the published prices or trucking charges of 
another member of the Industry. All sucli schedules filed as herein 
provided shall be open to inspection at all reasonable times by any 
one having interest therein including purchasers and prospective 
purchasers. 

(e) No memljer of the Industry shall sell or offer to sell any steel 
joist materials, except in accordance with such price terms to which 
shall be added the all-rail published tariff freight charges from the 
basing point on v.hich such list base price or prices is or are based 
to the place of delivery, or if such place of delivery shall be at the 
basing point, the published tariff switching charges; provided 
however, that in any case in which such steel joist materials shall be 
delivered by other than all-rail transportatii^n, the member of the 
Industry selling such joist materials may allow to the purchaser a 
reduction in the delivered price otherwise chargeable under this 
Article V at a rate which shall have been previously publyished and, 
after approval by the Code Authority, filed with the Secretary. In 
the case of materials being used in the erection of a definite structure 
tlie freight charges shall be computed to the nearest railway freight 
siding but if the materials are actually delivered to the job the 
trucking charges shall be added. In case the total of joists and 
accessories constitute less than a carload lot, the freight charges 
shall be computed in accordance with the less tliaii carload lot rate. 

(f) No member of the Industry shall enter into any agreement, 
understanding, combination or conspiracy to fix or maintain ])rice 
terms, nor cause or attempt to cause any member of the Industry 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 pupose of this article to create. 



73 

(g) Each member of the Industry shall file with the Secretary, as 
the agent of the Code Authority, on or before the effective date of 
this Code and thereafter maintain on file a full, correct, and up to 
date list of the names and addresses of all agents or other persons 
to whom such member allows, pays, or is under contract to pay any 
commission, bonus, or other compensation based on the volume or 
value of steel joist materials sold, except salaried employees devoting 
their full working time to the service of such member of the Indus- 
try. Such member shall also list and maintain wdth the Secretar}^, 
as the agent of the Code Authority, a full, correct, and up to date 
list of the amounts of all such commissions, bonuses, and other forms 
of compensation as specified in the preceding sentence to be paid 
to each such ]:)erson, and such member shall in no case make any 
payment of any commission, bonus, or such other form of compen- 
sation at a rate that shall be greater in amount than the respective 
commissions, bonuses, or other such forms of compensation that shall 
be so listed, nor shall any such member make any other payment or 
grant any allowance in the form or discount or otherwise for the 
purpose of inducing the purchase or sale of steel joist materials to 
anyone whomsoever except to employees devoting their full working 
time to the service of sucli member. All lists filed pursuant to the 
provisions of this paragraph (g) shall be open to the inspection of 
any member of the Industry at any reasonable time. The Code 
Authority shall have full power to determine whether any such 
commissions, bonuses, or other forms of remuneration referred to in 
this paragraph (g) paid by any member of the Industry have been 
used by any agent of such member of the Industry or by any other 
person to whom such member allows, pays, or is under obligation to 
pay any commission, bonus, or other compensation as a means of 
effecting a departure from any ])ublished price of such member, and 
if the Code Authority shall so determine, it shall notif}^ all members 
of the Industry of its determination and, subject to a review of such 
determination by the Administrator, thereafter no member of the 
Industry shall deal in any way with such agent or other person. No 
contract or arrangement for the payment of any commission, bonus, 
or other compensation referred to in this Section other than those in 
effect on the effective date of this Code shall become effective until 
twenty (20) days after the filing of the list hereinbefore provided 
for. 

(h) Any fjuotation, contract of sale, or sale made by any agent of 
any member of the Industry or by an}^ other person to whom such 
member shall allow, pa}^, or shall be under contract to pay any com- 
mission, bonus, or other compensation based on the volume or value 
of steel joists or accessories sold shall be made in the name of, and 
on behalf of, such member of the Industry by such agent or other 
person. 

(i) After an increase in the published prices of any member of the 
Industry, such member may make a contract of sale at his published 
price in effect immediately prior to such increase, provided such 
member shall have filed with the Secretary on or before the effective 
date of such increase a copy, in such form as may be required by 
the Code Authority, of a provisional contract with the purchaser. 
Such provisional contract sliall require that, in the event such pur- 



74 

chaser shall be awarded the contract under a bid submitted by such 
purchaser whereby such purchaser sliall be obligated to a third party 
if the bid is accepted, such purchaser shall purchase the steel joist 
materials covered by such contract within thirty (30) days (except 
where the requirements of governmental invitations to bid call for 
a longer periml) after the effective date of such increase in published 
prices and shall use such steel joist materials in the construction of 
the identified project referred to in such bid. 

Section 4. Ksti mating. — (a) Each member of the Industry which 
directly or through agents shall submit a lump sum bid on a specified 
project located in a district in which a quantity Estimating Bureau 
has been established or approved by the Code Authority and involv- 
ing more than five tons of steel joists, exclusive of accessories, shall 
purchase from such Bureau an estimate of quantities of steel joists, 
accessories and slab centering materials including nailer joists and 
special joists required on such project. Each member of the In- 
dustry selling steel joist materials in each such district shall deposit 
a copy of his individual current price list currently applicable in 
such district with such Bureau, and such Bureau shall apply the 
price lists of the individual member of the Industry to the various 
items and kinds of materials included in the Bureau's estimate on 
any specified project. All estimates shall be kept on file in the 
Estimating Bureau and shall be subject to examination of all mem- 
bers of the Industry and the Administrator after contracts have 
been awarded. 

(b) No member of the Industry shall guarantee any quantity or 
lump sum or maximum sales price for steel joist materials re- 
quired on a project involving more than five tons of steel joists, ex- 
clusive of accessories, and located in a district in which a (quantity 
Estimating Bureau has been established or approved b}^ the Code 
Authority except the quantity, lump sum or maximum price secured 
by such member from such Bureau. 

(c) The Secretary shall prepare a form of schedule for the pres- 
entation and tabulation of the individual published prices and truck- 
ing charges by each member of the Industry, for purposes of filing 
witli the confidential and disinterested agent of tlie Code Authority 
referred to in paragraph (c) of Section 3 of this Article V and 
with properly authorized estimating Bureaus. 

Section 5. Backcharges. — (a) No backcharge or other refund or 
allowance of a claim of any purchaser shall be granted or paid by 
any member of the Industry if the purpose or effect thereof is to 
effect a secret or discriminatory allowance, or an unearned discount 
from any published price. 

(b) A statement of each backcharge, refund or allowance for claim 
granted or paid by any member of the Industry shall be filed with 
the Secretary in such form and at such time as may be required by 
the Code Authority. 

Section 6. Services. — Where any member of this Industry ren- 
ders, procures and arranges for, directly or indirectly, any service 
whatsoever in connection with the sale or contract for sale of any 
steel joist material, such member of the Industry must ])ublish his 
price for such service, file such price, and adhere to all conditions 
m this Code set forth as applying to the sale of steel joist materials, 



75 

as if such services were in fact steel joist materials; provided that all 
erection services rendered by any meiniber of the Industry shall be in 
full compliance with the labor and other applicable provisions of the 
appropriate Code covering such services. 

SEcnoN 7. Discounts. — All steel joist materials shall be invoiced 
in terms of net cash within thirty (30) days of the date of invoice 
and the maximum rate of discount for early paj-ment shall be one- 
half of one percent (V2 of 1%) of the invoiced value of such mate- 
rials if the invoice of such materials shall be paid within ten (10) 
days from the date of such invoice; provided, however, that anj^ 
member of the Industry may allovr such discount of one-half of 
one percent (1/0 of 1%) for payment within ten (10) days on the 
basis of settlements twice in each month as follows : 

(a) On invoices dated from the 1st to the 15th, inclusive, of any 
month, such discount may be allowed on pajanent of snch invoices on 
or before the 25th of such month ; 

(b) On invoices dated from the 16th to the end of any month 
such discount may be allowed on payment of such invoices on or be- 
fore tlie 10th of the next following month. 

Any discount allowed in accordance with the provisions of this 
Article shall apply only to the invoiced value of the materials speci- 
fied or service rendered therein and not to any part of the transpor- 
tation charges on such materials. 

If any member of the Industry shall allow credit to any purchaser 
or allow any purchaser to delay payment in respect of any invoice for 
a period longer than thh'ty (30) days from date of invoice, then such 
member shall charge interest at the rate of six per centum per annum 
on the unpaid balance, or if the legal rate of interest shall be less 
than six percent (G%), at the legal rate. 

Section 8. Nothing in this Article contained shall be deemed to 
apply to or aifect the sale of any steel joist material for direct ship- 
ment in export trade by any member of the Industry within the 
meaning of the term " export trade " as it is used in the Export 
Trade Act, or, unless and to the extent that the Code Authority shall 
otherAvise determine, the sale of any product by any such member for 
direct shipment to the Philippines, Hawaii or Porto Rico or other 
insular possessions of the United States of America. 

Section 9. Unfair Practices. — For all purposes of the Code the 
following acts shall constitute unfair practices and shall be deemed 
to be unfair methods of competition in commerce within the mean- 
ing of the Federal Trade Commission Act as amended, and the using 
or employing of any of them shall be deemed to be a violation of the 
Code, and any member of the Industry which shall directly or in- 
directly through any officer, employee, agent or representative use 
or employ any of such unfair practices shall be guilty of a violation 
of the Code. 

(a) No member of the Industiy 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 member of the Industry in relation to the business of the 
employer of such employee, the principal of such agent or the repre- 
sented party, without the knoAv ledge of such employer, principal 
or party. Commercial bribery provisions shall not be construed to 



76 

I^rohibit free and general distribution of articles commonl}'^ used for 
advertisiui; except so far as such article*; are actually used for 
commercial briber}' as hereinabove defined. 

(b) Procuring, otherwise than with the consent of any member of 
the Industry, any information concerning the business of such mem- 
ber which is pr()i)erly regarded by it as a trade secret or confidential 
within its organization, other than information relating to a viola- 
tion of any provisions of the Code. 

(c) Imitating or simulating any mark or brand used by any 
other member of the Industry, when such imitat on or simulation is 
calculated to or may mislead or deceive purchasers or prospective 
purchasers. 

(d) Using or substituting any material superior or inferior in 
quality to that specified by the specifier and purchaser of any steel 
joist material or using or substituting any material or an}'' method of 
manufacture not in accord wath any applicable law, rule or regula- 
tion of any governmental authority. 

(e) Cancelling in whole or in ])art, or permitting the cancellation 
in whole or in part of any contract of sale of any steel joist material, 
except for a fair consideration. 

(f) Paying or allowing or offering to any purchaser in connec- 
tion with the sale of any steel joist material any rebate, commission, 
credit, discount, adjustment, gratuity, gift or similar concession 
other than as is permitted by the Code and specified in the contract 
of sale. 

(g) Disseminating, publishing or circulating any false or mis- 
leading information relative to any steel joist material or price for 
any product of any member of the Industry, or the credit standing 
or ability of any memV^er tliereof to perform any work or fabricate 
or produce any steel joist material, or to the conditions of employ- 
ment among the employees of any member thereof. 

(h) Inducing or attempting to induce by any means any party to 
a contract with a member of the Industry to violate such contract. 

(i) Aiding or abetting any person, firm, association or corporation 
in any unfair practice prohibited under this Code. 

(j) iMaking or giving to any purchaser of any steel joist material 
any guaranty or protection in any form against decline in the market 
price of such steel joist material. 

(k) Stating in the in\M)ice of any steel joist material as the date 
thereof a date later than the date of shipment of such steel joist 
material, or including in any invoice any steel joist material shipped 
on a date earlier than the date of such invoice. In the case of lump 
sum contracts, the invoices of partial shipments shall be at least 
proportionate to the shipments. 

(I) iMaking any sale or contract of sale of any steel joist material 
under any desc-ription which does not fully describe such steel joist 
material in terms customarily used in the Industry. 

(m) iMaking any misrepresentations as to the quality, quantity, 
origin, or other material condition of any steel joist material or 
service. 

(n) Where different steel joist materials are contracted for sale 
or bid on at the same time or for the same job, failure to itemize 



77 

steel joist and other materials as required pursuant to Article V, 
Section 2 (a), shall be an unfair trade practice. 

(o) Submission of more than one bid or quotation whether verbal 
or written to any purchaser or prospective purchaser on any speci- 
fied material on a definite project, except (1) in the event of a 
material change in the plans and specifications of the project, or 
(2) in the event that such bid or quotation has not been accepted in 
the period named for acceptance in such bid or quotation, (3) in 
tlie event of a decrease in the published prices of the producers of 
the raw material in question, notification of which shall have been 
given by the Secretary to the members of the Industry. Xothing 
in this ride shall be deemed to prevent a member of the Industry from 
correcting any typographical or other unintentional mistake provided 
that notice of any such correction shall first be given to the Secretary. 

(p) Acceptance of any form of paper or security in payment at 
more than the true value thereof. 

(q) Any offer or agreement to finance any purchaser of steel joist 
materials other than the extension of credit for materials sold by 
the member of the Industry extending such credit. 

(r) The shipment of any foreign steel not marked in accordance 
with the requirements of the Treasury Department of the United 
States with the full name of the country of origin on each piece; 
provided, however, that this rule shall not be applicable to stocks of 
foreign steel in the possession of, or owned by members of the 
Industry and actually in this country at the effective date of the 
Code and listed with the Secretary on or before such date, who shall 
also be notified of all shipments from such stocks and the date they 
are exhausted. 

(s) Entering into contracts for steel joist materials without 
actual obligation on the part of the buyer to purchase any specific 
quantit}" for delivery either within a specified time, or for any 
j)articular job or jobs. 

(t) Making the acceptance of a separately jjriced material other 
than steel joists and accessories in a quotation, or the making of 
another quotation for other than steel joists and accessories, contin- 
gent upon the acceptance of a quotation for steel joist material. 

(u) To ship or receive steel joist materials on consignment. 

(v) To render or secure inspection services (except regular mill 
test reports) at other than the actual and customary rate charged 
for such inspection services by established inspection organizations. 

Section 10. Penalties and damages.— Kny violation of any pro- 
visions of the Code by any member of the Industry shall constitute 
a violation of the Code by such member and shall subject such 
member to the full statutory penalties by the applicable statutes 
made and provided; provided, however, that the following additional 
damages shall be assessable against, and the following paragraphs of 
this Section 10 shall apply only to such members of the Industry as 
shall have signed and delivered to the Secretary a letter substantially 
in accordance with the form contained in Schedule B attached hereto 
and provided further that no member of the Industry failing to 
sign such letter of assent shall be denied any of his full rights, priv- 
ileges and benefits under this code as long as the same by the terms 
hereof shall continue in effect. 



78 

(a) Reconrnizinf;: that the \'iolation by any member of the In- 
dustry of any provision of the Code will disrupt the normal course 
of fair competition in the Industry and cause serious damage to mem- 
bers of the Code and that it may be difficult fairly to assess the 
amount of such damage to any member of the Code or the public, 
it is hereby agreed by and among all members of the Code that 
each member of the Code who shall violate any such provision shall, 
unless otherwise specified by the Code Authority, pay to the Code 
Authority, in trust, as and for lif{uidated damages the sum of ten 
dollars ($10.00) per ton of any steel joist materials, or twenty per- 
cent {20'}i ) of the entire sales price of any contract for sale of steel 
joist nuiterials, whichever is the larger, sold or contracted for sale 
by such member in violation of any such provision. 

(b) Upon the complaint of any member of the Code that any act 
of any member of tlie Code ccmstitutes an unfair practice under the 
Code, the Code Authorit}^ i^^ay provide for the investigation, hear- 
ing and decision of such comphaint through such conunittce, im- 
partial tribunal or otherwise as it may from time to time determine 
and except as otherwise in this Article provided, the Code Authority 
or such committee or other tribunal may assess such liquidated 
danuiges or other jx'ualty or take such other action to refer the com- 
])laint to the Administrator or such other governmental authority as 
it may deem necessary or desirable in order to effectuate the policy 
of the Act or the provisions of this Code. 

(c) All amounts so paid or collected under this Article shall be 
used by the Code Authority for the more eifective administration 
and application of the Code and may be applied pro rata in the 
reduction of the assessments of all members of the Code hereinbe- 
fore provided for. 

(d) Anything in the Code to the contrary notwithstanding, the 
Code Authority b}^ the affirmative vote of two-thirds of the wdiole 
Code Authority may waive any liability for or reduce the amount 
of any liquidated damages imposed by or pursuant to any provision 
of the Code for any violation of any provisions thereof, if in its 
descretion it shall decide that such violation was innocently made or 
that there were extenuating circumstances and that the collection of 
such damages will not to an}^ material extent tend to effectuate the 
I^olicy of the Act. 

Article VI — IModifications 

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

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



79 

Article VII — Monopolies 

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

Article VIII — Effective Date 

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

Article IX 

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

Article X 

The Code shall continue in effect until June 16, 1935, or until any 
earlier date upon which the Act shall cease to be in effect or until 
the members of the Code shall excercise in the manner hereinafter 
provided, the power which they hereby reserve to terminate the 
Code at any time after the expiration of sixty (GO) days from the 
effective date of the Code by the agreement of ninety per cent (90%) 
of all the members of the Code to such termination. Such agi'eement 
shall be evidenced in writing and shall take effect ten (10) days after 
the date of its submission to the President. Upon the termination 
of the Code in the manner hereinbefore provided, all obligations and 
liabilities under the Code shall cease, except those for unpaid assess- 
ments theretofore made in accordance v^dth the provisions of the 
Code and those for liquidated damages wliich may have theretofore 
accrued under any provisions of the Code.^ 

Approved Code No. 495. 
Registry No. 1142-06. 



1 Amended. See paragraph 2 (3) of order approving this Code. 



SCHEDULE A 
Hours of LAnou, Hates of Pay and Other Conditions of Employment 

Section 1. Except iu tlie case of executives, those eiuployeil in supervisory 
capacities and in technical wurli, receiving $35.00 per week or over, and tlioso 
eniployt'd in emergency worlv involving hrea^cdowns or requiring the protection 
of life and property, none of the nienil>ers of the Industry, except as hereinafter 
providtnl. shall cause or permit any cmiiloyee to worlc more than 40 hours 
per week excepting that during periods of seasonal activity a maximum 
working period of 48 hours per week may ho permitted durhig not more than 
six weeks iu any one-Iuilf calendar year beginning January 1st, or July 1st, 
respectively. No employee shall he required or permitted to work more than 
8 hours in any one day nor more than 6 days in any one week. After the 
date <)f the employment by any member of the Industiy of any employee such 
member shall not knowingly permit such employee who also shall have per- 
formed work for one or more other employers to work for such member sucli 
number of hours as would result in a violation of the Code had all such work 
been i)erformed for such member. 

Section '2. For the purposes of this Schedule the wage districts described 
in Section 4 of this Schedule A have bi'en established. 

SiXTioN 3. (a) Until changed by amendment of the Code as hereinbefore 
in Article VI provided, the minimum rates of pay per hour which shall be 
paid by members of the Industry for common labor in the Industry iu the 
respective wage districts descrilied in Section 4 shall be the rates set forth 
in Section 5 of this Schedule A. None of the members of the Industry shall 
Iiay any employee, except as noted below, in its employ in the Industry in any 
such district any ra*^e of pay less than the rate specified for such district in 
Section 5, and any violation of this provision of tb.e Code shall be deemed 
an unfair practice. Such rat.es of pay shall not, however, be understood to 
be the maximum rates of pay for their respective distiicts.^ 

(b) In the case of employees performing work for which they are paid 
per piece of work performed, the minimum rate of pay which each member 
of the Industry shall pay such employee for such work shall produce at least 
the minimum rate of pay per hour provided in this Cotle for the same class 
of labor at such plant. 

• (c) No person employed in clerical or office work shall be paid less than 
$15.00 per week, or be permitted to work more than 40 hours in any one week 
or more than 8 hours in any day, except tliat blueprinting and errand employees 
may be paid not less than 80% of the above sum, provided that the number 
of such employees paid less than the minimum shall not exceed 5% of the total 
employees covered by this paragraph. 

(d) In no c^ase shall any member of the Industry avoid or evade the labor 
provisions of this Code by contracting his work to any per.son subject to labor 
regulations less stringent than those provided in this Code. 

(e) Overtime. — Any employee (except watchmen) working on Sundays, legal 
liolidays or beyond 8 consecutive hours per day or 40 hours per week (except 
as permitted herein) shall be paid not less than one and one-half (1^/^) times 
his normal rate for such overtime work. 

(f) Persons employed only as watchmen may be employed not more than 56 
hours in any week nor more than 6 days in any week or 10 hours in any day. 

(g) A foreman who during slack business periods functions as a working 
foreman shall be exempt from the limitations of working hours insofar as his 
executive duties require. 

(h) llV/j/c adjust tiicnt. — There shall be an equifal)le adjustment of all wages 
above the minimum and to that end, within thirty (30) days after the effective 
date of the Code, the Code Authority shall submit for the approval of the 



•Amended. See paragraph 2 (2) of order approving tbis Code. 

(80) 



81 

Administrator, a proposal for the adjustment of wages above the niiniiuHm. 
Upon approval of any such plan by the Administrator, after such public bearing 
as lie may prescribe, such plan sliall become binding as a part of this Code; 
proridcd, however, that in no event shall hourly rates of pay be reduced. 
Section i.^ The description of the wage districts is as follows : 

1. Eastern District. — Comprises that part of the United States which is 
north of the State of Virginia and east of a line drawn north and south through 
the most easterly point of Altoona, Pennsylvania ; that part of the State of 
Maryland which is west of such line ; and the Counties of Monongalia. Taylor 
Preston, Randolph. Tucker, Pendleton, Grant, Mineral, Hardy, Hampshire, 
Morgan, Berkeley, Mason, and Harrisun in the State of West Virginia. 

2. Johiistoicn District. — Comprises Cambria County and the City of Altoona 
in the State of Pennsylvania. 

3. Pittsburgh District. — Compiises the Counties of Warren, McKean, Forest, 
Elk, Clarion, Indiana. Somerset, Westmoreland, Fayette, Greene, V/ashington, 
Allegheny, Beaver, Butler, Armstrong, and Jefferson and that remaining part 
of the State of Pennsylvania which is west of a line drawn north and south 
through the most easterly point of Altoona, except the parts which are included 
in the Eastern, Johnstown, and Youngstowu Valley Districts and including tliat 
part of the County of Clearfield west of such line. 

4. Yoiifi(jstotni VaUey District. — Comprises the Counties of Lawrence, Mer- 
cer, Crawford, and Venango in the State of Pennsylvania, and the Counties of 
Trumbull, Mahoning, and Columbia in the State of Ohio. 

5. North Ohio River D ist)-ict. ^-CompYises the cities along the Ohio River 
north of the City of Parkersbui-g, West Virginia, and the Counties of Bel- 
mont, Harrison, Monroe, and Jefferson in the State of Ohio and the remainder 
of the State of West Virginia which is not included in the Eastern and 
South t)hio River Districts. 

6. Ciinto)i, MassiUon, and Mansfield District. — Comprbses the remainder of 
the State of Ohio which is not includetl in the Cleveland, Youngstowu Valley, 
Detroit-Toledo, North Ohio River, and South Ohio River Districts. 

7. Cleveland District. — Comprises the Counties of Ashtabula, Geauga, Lake, 
Cuaylu)ga, and Lorain in the State of Oliio. 

8. Buffalo District. — Comprises that part of the State of New York west 
of a line drawn north and south through the most easterly point of Altoona, 
Pennsylvania, and Erie County in the State of Pennsylvania. 

9. Detroit-Toledo District. — Comprises the Counties of Seneca, Wood, Huron, 
Sandusky, Ottawa, Williams, Fulton, Henry, Defiance and Lucas in the 
State of Ohio and the State of Michigan. 

10. South Ohio River District. — Comprises the State of Kentucky, the City 
of Parkersburg, West Virginia, and cities along the Ohio River south of said 
City, the Counties of Guernsey, Muskingum, Jackson, Noble, Washington, 
Morgan, Athens, Meigs. Vinton, Gallia, Lawrence, Scioto, Adams, Brown, Cler- 
mont, Hamilton, and Butler in the State of Ohio and the County of Wood in 
the State of West Virginia. 

11. Indiana -Illinois-Ht. Louis District. — Comprises all the State of Indiana, 
except the County of Lake ; all the State of Illinois, except the Counties 
of Lake and DuPage, and the Chicago Switching District ^ all of tlie Stata 
of Missouri except Jack.son County, all of the State of Wisconsin, except the 
Counties of Milwaukee, Racine, and Kenosha ; and the State of Iowa. 

12. Chicayo District. — Comprises the Cliicago Switching District; the Coun- 
ties of Lake and DuPage in the State of Illinois ; the County of Lake in the 
State of Indiana ; and the Counties of Kenosha, Racine, and Milwaukee in tho 
State of Wisconsin. 

18. Southern District. — Comprises all that part of the United States south 
of the States of Maryland, West Virginia. Kentucky, :Missouri, Kan.sas, and 
Colorado and south and/or east of the State of New Mexico, but does not 
include the County of Jefferson in the State of Alabama. 

14. Birmingham District. — Comprises tlie County of Jefferson in the State 
of Alabama. 

l.~i. Kan.sas City District. — Comprises the County of Jackson in the State of 
Missouri, and the States of Kansas and Nebraska. 

H). Duluih District. — Comprises the States of Minne.sota, South Dakota and 
North Dakota. 

17. Colorado District. — Comprises the State of Colorado. . 



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



82 

18. U\^ah District. — Comprises the State of Utah. 

10. Krattlr District. — Comprises the States of Washington, Oregon, Idaho, 
Montana, and Wj-oming. 

20. Snn Francisco District. — Comprises the Counties of Monterey, Kings, 
Tuliire, I'resiio, Madera, INIariposa, Tnolnnme. and Alpine in the State of 
California and all the State of California north of these Counties and that 
portion of the State of Nevada, north of a line drawn due east from the inter- 
section of the Mono County, California line and the Nevada State Line. 

21. Los Angeles District.— {"oinin-'iaeA the Counties of Inyo, Mono, San Luis 
Ohispo. and Kern in the State of California and all of the State of California 
south of these Counties, that portion of the State of Nevada south of a lino 
drawn due east fnun the inter.vection of the Mono County, California Line and 
the Nevada State Line, and the States of Arizona and New Mexico. 

Sfxtion 5.' The minimum rate of pay, as noted in Section 3 of this Schedule, 
shall he as follows : 

District Cents per hour 

1. Eastern district B5 

2. Jolmstown district 37 

3. Pittsl>urgii district 40 

4. Youn.c;stown Valley district 40 

5. North Ohio River district 40 

6. Canton. Massillon, and Mansfield district 37 

7. Cleveland district 40 

8. Buffalo district 38 

9. Detroit-Toledo district 40 

10. South Ohio River district 37 

11. Indiana-Illinois-St. Louis district 37 

12. Chicago district 40 

13. Southern district . 25 

14. Birmingham district 27 

15. Kansas City di.^trict 35 

16. Duluth district 37 

17. Colorado district 40 

18. I3lah district , 39 

19. Seattle district 38 

20. San Francisco district 37 

21. Los Angeles district 35 



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



SCHEDULE B 

Form of Lettbr of Assetnt to the Code 

To (he SFCBErrABT of Steel Joist In.sttttjte:, 

Dime Bank Building, Detroit, Michigan. 

Da\R Sib: The undersigned, desiring to become a member of the Code of Fair 
Competition for the Steel Joist Industiy, a copy of which is annexed hereto and 
marktd Annex A, hereby assents to all of the provisions of said Code (herein- 
after referred to as the Cotle), including the provisions of Section 10 of Article 
V, and effective as of the date on which the Code shall have been approved 
by the President or as of the date on which this letter shall have been delivered, 
if delivery thereof shall have been made subsequent to the date on which the 
Code shall have been approved by said President as aforesaid, by the signing 
and delivery of this letter becomes a member of the Code and effective as 
aforesaid hereby agi-ees with every person, firm, association and corporation 
who shall then be or thereafter become a member of this Code, that the Code 
shall constitute a valid and binding contract between the undersigned and all 
such other members. 

For all purposes of the Code, the address of the undersigned, until written 
notification of change shall be filed with you, shall be as set forth at the foot 
of this letter. 

Very truly yours, 



Name of Company 

Name ol Officer 

Address 



(83) 



SCHEDULE O 

Standard Stecifi cations For Stej-:l Joists 

Adopted by the Steel Joist Institute, December 20, 192S. Effective February 1, 
1029. Revised December 12, 1933 

1. D(finitiov,».^Auy steel beam or truss shaped steel member suitable for 
supporting floors and roofs when used for floor filling between the main sup- 
porting girders, beams or wiills, shall be known as a steel joist. Such joists 
may be made of rolled shaped or strips of sheet steel, round bars, angles or 
specially rolled bars riveted or welded together, or by expanding rolled shapes, 
or by any other method conijilying with the refjuirements of this article. 

2. Maicrials. — All steel used shall conform to the standards of the American 
Society for Testing Materials for stnictural sleel for building designated as 
A9-2!).' 

All joists shall receive one coat of good paint by dipping or spraying before 
leaving the shop. 

3. Connections. — The joints and connections of all steel joists shall be made 
by connecting the members directly to one another by electric-arc. spot or 
pressure welds or by rivets. In the case of expanded joists, a portion of the 
metal may be left intact to form a connection. All joints and connections shall 
be capable of withstanding a stress at least three (3) times the designed stress 
and shall be sufficiently rugged to resist the stresses incident to handling and 
erection when handled in a reasonable nuinner. All intermediate joints shall be 
designed so as to be as symmetrical as jiosslble and in no case shall the eccen- 
tricity of any such joint exceed thrtH'-quarters ('Yi) of the least diameter of 
the largest bar connected, but end niendxu's may be designed as projecting 
beams. Stresses arising from eccentricity shall be includetl with other stresses 
in designing all members. 

NoTT':. — Experience shows that the stress arising from careless handling 
is much greater than that sustained by the connection while working at 
full load. 

4. Methods of Design and Stresses. — (a) Steel joists having solid webs shall 
be designed as beams. The maximum fibre stress in tension and compression 
shall not exceed eighteen thousand (18.000) pounds per square inch. The 
maximum distance from any part of eompressiim flange to the web shall not 
exceed thirty (30) times the thickness of the flange metal. The web shear 
shall not excetn^l that allowed in the Standard Specifications of the Ameri- 
can Institute of Steel Construction published December, 1027. Webs made of 
two or more sheets of metal shall be considered as seinirate members, each 
carrying its share of the shear. 

(b) Steel joists built up of bars or other sections and those fabricated by ex- 
panding rolled sections shall be designed as trusses. The compression stresses in 
l)0unds per square ineli in the top chord or 

18 000 
diagonals shall not exceed 15,000 nor — ^i 

1+ 



I8,ooor 

when the Jength, 1, of the member is taken as the distance cleft r of welds or 
other attachments, and r is the least radius of gyration in the case of diagonal 
and vertical mend)ers and the radius of gyration of the top chord or any com- 
ponent part thereof. The top chord shall be considered t() be stayed laterally 
at fianel points, by the slab above. The ratio of 1 to r shall not exceed 120. 
In comi)Uting the resistance of joists to construction loads as required in Sec- 
tion 7, the t(jp cho)-d shall satisfy the additional requirements that it shall safely 
carry the required compression using 1 as the distance between lines of bridg- 
ed) 



85 

iug and r as the least radius of gyration around the vertfcal axis but the ratio 
of 1 to r in this case may be not exceeding 2lX>. No bending stresses shall he 
assumed in top chords of trusses supporting poure<l concrete slabs which have 
a thickness of more than one-fourteenth (Yn) of the distance between vertical 
supports under the tup cliord. but for joints supporting concrete slabs thinner 
than this and joists supporting wood flooi-s, the theoretical bending stress for a 
uniform load shall be computed and subtracted from the allowable stress at the 
center of the panel. Combhied axial compression and bending stress at points 
of vertical support of the top chord shall not exceed eighteen thousand (18,000) 
pounds per square inch. The unit tenside stress shall not exceed eighteea 
thousand (18.000) iwunds in any member. 

Note. — This paragraph does not require that bending stress shall be 
figured if a concrete slab two (2) or more inches thick is used with woo4l 
sleepers embedded as described in section 9, paragraph (b) and (c) of this 
specification, nor does it require bending stresses to be figured when a wood 
sleeper parallel to the joist and resting on top of the joist is of sufficient 
size to satisfactorily carry the loads from panel point to panel point. 

5. Span. — The span of joists having an all steel top chord shall not exceed 
five hundred and fifty (550) times the radius of gyration of the top chord iu 
a plane i>ei-pendicular to the web of the joist, but in case the top chord con- 
sists of a flat top section continuous with a center web, the radius of gyration 
of the top plate alone shall be taken. In the case of joists having a top 
chord of steel with a wood mailing strip attacked, the span shall not exceed 
one hundred sixty (160) times the total width of the top chord. The span 
shall not exceed twenty-four (24) times the depth of the steel portion of the 
joist. 

6. Spacing. — The spachig of the joists shall not be greater than the safe 
span of the top slab or flooring over the joists, and in no case shall be greater 
than twenty-four (24) inches in floors and thirty (30) inches iu roofs, except 
that steel joists may be used to support wood or sheet metal roofs only if 
not over seven (7) feet apart. 

7. Erection. — Joists shall have a l>earing of at least four (4) inches on 
masonry or reinforced concrete, and at least two and one-half (2^^) inches 
on steel. The unit bearing pressure on masonry and concrete shall not exceed 
two hundred (200) pounds per square inch, and on steel shall not exceed one 
thousand (1,000) pounds per square inch. Every third joist shall be anchored 
to concrete or masonry support with an anchor equivalent to a three-eighths 
(%) inch round. The ends of all joists supported on masonry walls shall be 
bedded in mortar. All joists supported on steel beams shall be secured with 
a hook made of not less than three-sixteenths ( A ) inch bar fastened over the 
flange of the beam, except iu the case of buihlings having a height of more 
than twice the least dimension of the base, in which case each joist shall be 
welded to the steel work with two (2) welds at ench end. each one (1) inch 
long, or by means of a one-half (lA) inch bolt or rivet at each end. In the 
case of all joists which are not either welded, bolted or rivetetl to supports the 
top lath or other top slab centering shall be cut away to permit concrete or 
top slab to fill space around joists and seal ends. 

All joists shall be fastened in place and permanent bridging installed before 
any construction loads, except the weight of the necessary workmen to install 
bridging, is placed upon the joists. 

The joists when erected and bridged shall be capable of safely sustaining 
a load of eight hundred (800) pounds at any panel joint on any one joist. 

Note. — In all framed structures, the frame should be designed to carry 

all wind load without assistance from the floor construction. In the case, 

however, of relatively high slender buildings, it is provided that the joists 

shall be welded to supports to give stiffness. In the case of relatively 

low buildings, this is not necessary and it is provided only that the joists 

shall be hooked over supports to guard against accidental dislodgment 

during erection. In the case of fires, the greatest part of the damage is 

due to the expansion of structural members. In the case of steel joists, 

expansion across the run of joists is of course impossible, and by leaving 

the ends free, expansion in the direction of the joists will be rendered 

harmless. 

Refore being bridged, steel joists cannot be expected to sustain considerable 

loads, especially moving loads common in building constniction. Loading of 

unstayed joists may easily result in construction accidents. 



86 

S. Bridfiing. — As soon as joists have boon eroctod, bridging: shall bo installed 
between them before the application of constrnction loads. This bridsiUfT shall 
be adequate to safely support the top ihord asainst lateral movement during 
the construction period and shall hold the joists in an approximately vertical 
plane passini; throiijih the bearings. If diajional bridginj; is used in which all 
diagonal members will resist only tension, they sb-iU not be less in area than 
a three-sixteenth ( I'rs ) incli round rod, and these diagonals shall be supple- 
mented by a continuous strut bclween the top chords of all joists so bridged. 
This top strut shall be equivalent as a strut to a half-inch round steel bar. 
If diagonal members are used which are capid)le of resisting Ixith tension and 
compression, the top strut may be omirted, but positive provision must be 
made at the end of each run of bridging to hold the tirst two joists in a 
vertical plane. These diagonal struts shall be capable of transferring five 
huudred (5(10) pounds from each joist to the adjoining joists. In case bridging 
in the form of horizontally placed beam or angle sections is provided, it must; 
be adequate to transfer not le.'s than five hundred (5tX)) pounds from each 
joist to the adjoining joists without apjireciable deflection, and it must also be 
so connected to the joists that it will supjtort the top chords against lateral 
movement and hold the joists approximately in a vertical plane. Fourteen 
(14) gauge wire diagonals shall be used to secure the bottom chord at each lino 
of bridging of this type. Wire may be omitted when a portal bridging is used 
which restrains both top and bottom chords and transmits the load required 
herein. 

The number of lines of bridging provided shall bo in accinnlance with the 
following table : 

Span Number of Lines of Bridj^'ing 

Up to 14 feet One row, near center 

34 to 21 feet Two rows approximately % span apart 

21 to 82 feet Tiu-ee rows 

In the case of joists provided with nailer strips carrying a wood deck, the 
wood deik may be used as the toji mend)er of the bridging system. 

1). f/.vcs- of Steel Joiat.s. — (a) When used in any construction where wood 
joists are permitted, steel joists may have a woo<l nailing strip attached to the 
top chord and a wood floor may be used over such joists. 

(!)) One hour fire resistance: Steel joists with or without a wood nailing 
strip above, when protected with a ceiling of metal lath and jilaster three- 
quarters {%) inch thick may be used wherever a one hour fire resistance is 
lequired. A wood top floor may be use(4 in such cases. 

(c) Two liour fire resistance: Steel joists protected with a ceiling of metal 
lath and gypsum or portland cement plaster at least three-quarters (%) inch 
thick may be used wherever a two honr fire resistance is required. Joists for 
this inirpose shall not have any wood nailing strip attached thereto and shall 
be covered with a toi» slab of concrete at least two (2) inches thick cast upon 
metal lath or other incombustible material. Wood nailing strips may be em- 
bedded in tills concrete slab if protected on the bottom with not less than one 
(1) inch of concrete. 

(d) Three-hour fire resistance: Steel joists protected with a ceiling of 
metal lath and gyi)suni or portaiid cement plaster at least one (1) inch thick 
may l)e used wliere a three hour fire resistance is required. Joists for this pur- 
pose shall not have any wood attached and shall be covered on top by at least 
two and one-half (2M;) inches of solid concrete. No wood nailing strii)s shall 
be used in such toj) slab. 

(e) F(nir-bour fire resistance: Steel joists protected on the bottom with a 
poui-od or precast reinforced gypsum slab not less than two (2) inche.s thick 
and otherwise in accordance with paragraph (d) above may be used wherever 
a four-hour fire resistance is recpiired. 

NoTK. — Tests made by (he Bureau of Standards show that ten (10) 
pounds of wood, paper or other combustible are required for each square 
foot of floor space to sustain a fire equivalent in intensity to a one-hour 
stand;ird fire test. Similarly, twenty (20) pounds of combustibh^ will 
produce a two-hour fiie, thirty (.10) pounds a three-hour and about thirty- 
seven CM) i)ounds a four-hour fire. 
In order that a structure may safely resist the complete burning of its con- 
tents, it is only necessary that all the elements of the construction should 
tsafely withstand a fire slightly greater than the maximum that can be supported 



87 

by its total contents. Usually, a factor of safety of one and one-half (li^) 
Is used based upon the average combustible contents. 

The combustible contents of the following occupancies including wood floor 
finish, trim and doors is ordinarily not greater than ten (lU) pounds so that 
a two-hour protection would give a more than ample factor of safety : Dwell- 
ings, apartments, liotels, hospitals, schools, colleges, theatres, (except stage), 
churches, assembly halls, lodge halls, offices (except record storage) and manu- 
facturing buildiiigs used for labricating metal or other incombustible materials. 
Storage rooms in any of the above occupancies, such as locker rooms in apart- 
ments, carpentry shops in hotels and hospitals and record vaults in oflices, 
will often contain considerably more combustible than this and should be 
l)rotected for a four-hour tire. 

Mercantile buildings, factories and warehouses vary considerably in com- 
bustible contents and are usually protected for a three or four hour period. 
No mention is made of the protection to beams and colunms which are outside 
of the province of this stantlard. 

10. Decks a>id Top 8lah.s. — Decks or top slabs of wood, concrete, gypsum or 
other material shall be assumed to stay the top chords of joists laterally but 
shall not be assumed to carry any part of the compression stress. 

Flat wood decks of single thickness of seven-eighths (%) inch material shall 
not have a span of more than twenty (20) inches for floors, or thirty (30) 
inches for roofs, and those uiade with one and tive-eighths (1%) inch material 
shall not have a span of more than five (5) feet in any case. All such decks 
shall be securely fastened to the wood nailer strips. 

Toured structural slabs of concrete, gypsum or other material shall not be 
less than two (2) inches thick. They shall be poured uixju three-eighths (%) 
incii riiibed metal hub weighing not less than four (4j pounds per yard tor 
spans not exceeding twenty-four (24) inches and upon three-quarters (%.) 
inch rib lath weighing not less than .46 jwunds per .square foot for spans not 
exceeding thirty (30) inches. The ribs of rib lath shall not be more than 
six (G) inches on centers. Other incombustible material at least equivalent 
in strength and stiffness may be used in place of lath. This lath or other 
centering shall be attached by substantial clips or soft wood wedges to the top 
chord of each joist at intervals of not over eight (8) inches. When no wooden 
top floor is to be placed over such slabs, they shall be adequately reinforced 
witli mesh or rods in addition to the lath to safely resist both positive and 
negative bending with due allowance for probable load concentrations. 

Note. — No material should be used as centering for the top slab which 
must be stretched across the top chord of joists or vvhich will exert an 
undue lateral pull on the top chords of the joists during the pouring of 
concrete. 

11. Dc/levtion. — The deflection due to the designed live load shall not exceed 
one three hundred and sixtieth (1/360) of the span. The i^ermanent deflection 
resulting from b.ading a finished floor to twice the designed live load for 
twelve (12) hours .shall not exceed twenty (20) percent of the total deflection 
for this load. 

12. I'avior of safely. — The maximum total load at failure shall not be less 
than two (2) times the total designed load of joists as computed by using 
the stresses permitted herein when tested with bridging and top slab using a 
uniform load. 

Note. — Steel joists are not intended to act as structural membei-s except 
as temporary suiiporting members during construction. With steel joists 
just as in the case of wood joists, the lateral support of the top deck is 
an essential element of construction. The performance of a steel joist 
floor construction can only be determined by applying the top deck and 
testing with a uniform load. Concrete decks of quick setting cement can 
be tested at the end of 24 hours. 



SCHEDULE D 

Code ok Standard pRAcncE op the Steel Joist iNbTiruTE 
Adopted April 7, lltSl. RivistMl DecniahtT 12, 1U33 

8EX:TI0N 1. GENERAL 

1.1. Scope. — The practices and customs contained in this cede are in 
accordaiKc with frond engineering; practice, tend to secure safety in steel joist 
construction, and are standard witliin the industry. Tliis code is made a part 
of every contract between the I'uyer and Seller of steel joists and accessories 
thereto unless specilic provision to the contrary is made. This code contem- 
phates the Seller as a company manufacturing steel joists but without any 
resi)onsibilities in the matter of erecting them. Whenever the Seller sliall 
contract to erect the joists he shall assume the, usual ol»ligations of a sub- 
contractor in addition to the obligation set forth herein. 

1.2. AppUcotioii. — Tliis Ccxle of Standard Practice is to govein as a standard 
in those cases where the provisions of building codes, architects' and engineers' 
jilans and specifications, or contracts are not complete or clear. There shall 
be no contiict between this code an<l any legal building regulation; this Code 
shall only supplement and amplify such laws. 

1.8. Dcnifjii. — In the ab.'^ence of ordinances or specifications to the contrary, 
all designs shall Ite in accordance with the Standard Specifications of the Steel 
Joist Institute adofited December 20, 1928, and as .subseiiuently amended, and 
all stresses shall be in accordance with the latest Standard Specification of the 
American Institute of Steel Construction. 

1.4. P/ow.s- for Bidding. — IMans to serve as a basis for bids shall be complete 
as to location of all bearing walls, steel and concrete supporting members, floor 
oiK?nings. i«irtitions and otlier dead loads, and the material and thickness of 
floor or roof deck and ceiling shall be siKH-ified. 

1.5. Rcsixini^ihility for Dcsiyn and Erection.— When details of design are speci- 
fietl the Seller shall assume no responsibility other than to furnish all steel 
joist materials specified. When details of design are not specified the Seller 
shall fuinish all materials i-equired in this Code. In neither case shall the 
Seller as.sume any responsibility for the erection of the materials furnished. 

section 2. APPLICATION 

TV^hen the floor or roof deck is of concrete, all joists fumislied f»hall be 
fabricated entirely of steel and shall conform to the standards of the Steel 
Joist Institute and United States Department of Commerce Simplified Practice 
Rc»commendation No. K 94-30. Wheii the floor or roof deck is of wocxl or sheet 
metal, steel joists having a wood nailing strip attached may bo provided. (The 
Institute has establisheil no standards for such joist.s.) 

BEC-nON 3. ESTIMATING 

3.1. Complete Pinna and Specififntion.i. — When plans are complete ns to all 
materials requircnl, estimates shall include such of the following items as 
are si)ecified and no otliers, and shall be quoted as estimate on joists and 
accessories : 
Joists. 

Ceiling extensions if necessarj' for properly supporting ceiling lath. 
Bridging. 

Wall and beam anchors. 
Joist l)earing plates if necessary. 

Materials for framing all openings not exceeding four (4) feet at right 
angles to run of joists unless otherwise specified. Beveled plates or 
other means of attachment for roof or ramp rakes. 

(88) 



89 

The following shall be quoted as separate items: 

Top lath or other i)ermaneut centering for concrete decks. 
Top lath clips. 

Screed chairs if to be attached to joists. 

Clamps to hold metal docking against wind uplift and stay top chords of 
joists when metal decks are to be supported on steel joists, unless 
specified to be furnished by seller of deck. 
When the following items are specified they may be estimated but shall be 
quoted as a separate item : 
Ceiling lath. 
Clips for attaching ceiling lath. 

3.2. Incomplete Plans and Specifi-i-ations. — When plans and specifications are 
incomplete in any particular, estimate shall include such material as is required 
by the provisions of paragraphs 3.3 to 3.9 and estimates .shall be segregated and 
quoted as required in paragraph 3.1. 

3.3. Joists, Location and Spacinr/. — All joists shall be designed according, to 
the Steel Joist Institute Standards and tht' maximum spacing shall not exceed 
the requirements of the Standard Specifications of the Steel Joist Institute. 
Also the spacing shall not be greater than that which will give a calculated 
total carrying capacity at least equal to that required in this section. In all 
cases there shall be one typical joist not more than four (4) inches in the 
clear from each end wall or other self-supporting walls parallel to run of 
joists. Where partitions extend parallel to run of joists there shall be at 
least one typical joist provided under each such partition and more than one 
such joist shall be provided if necessary to Siifely support the weight of such 
partition and the adjacent floor less the live load on a strip of floor one foot 
in width. Where partitions extend across run of joists their weight shall be 
ineUuled in the dead load as required in paragraph 3.9. In spacing joists, tie 
beams in steel frame buildings shall not be considered as taking the place 
of a joist unless the resisting moment of the tie beam Is at least as great as 
that of a typical joist. 

3.4. Bridying. — All bridging shall bo a bridging complying with the Standard 
Specifications of the Steel Joist Institute. No estimate shall be based upon 
wire bridging. 

3.5. Floor Lath. — The amount of lath estimated, shall be 15 i>ercent more than 
the total area of floors and roof within walls after deducting all openings in 
excess of 100 square feet in area. The lath shall meet the Standard Specifica- 
tions of the Steel Joist Institute. p]nough lath clips shall be estimated to 
attach lath at intervals of eight inches on each joist. 

3.G. Ceilinr/ Lath. — No ceiling lath shall be included in estimate unless it is 
definitely specified, in which case it shall be qvioted as required by the Metal 
Lath Code. 

3.7. Temperature Reinforcing. — Where wood finished floors are specified, no 
temperature steel shall be included in estimate unless specified. For all other 
tj'pes of floor finish terajperature steel equivalent to ^4 inch rounds 12 inches on 
centers both perpendicular and parallel to run of joists shall be provided, or 
mesh of equivalent sectional area. 

3.8. Special Details. — The following items shall not be estimated: 

Frame materials for openings more than 4 feet wide at right angles to run of 
joists. All such framing shall be in structural steel. 

Shelf angles and clip angles required on steel work for support of joists. 

3.9. Loads. — The loads to be used in designs shall be not less than the follow- 
ing and in no case less than the actual load when such load is definitely known. 

Dead load. — Joists, actual weight but not less than 3 pounds per square foot 
of floor area. 

Concrete floors, 12 pounds per inch of thickness per square foot of floor area. 

Gelling not less than 9 pounds per square foot of floor area. 

Wood floor finish not less than 3 pounds per square foot of floor area. 

Any special dead load for machinery, pipes or other details shall be included 
as specified by architect. 

Partitions. — The weight of partitions shown upon plans shall be taken a.s 
follows in pounds per square foot: 

Not plastert'd Plastered 

3 inch tile 16 24 

4 " " 18 26 

6 " " 25 33 



90 

Xot plastered riastcred 

3 inch gvpsuiu 1- 24 

4 " •• 16 24 

(J '• " 24 32 

4 " brick 40 48 

8 " " SO 88 

Wo(Xl stud (Wood lath) 12 

" (Metal lath) 18 

Wlien partitions are not detiiiili'ly shown on plans tlio followin.i; loads in 
pounds per square loot of llin.r area sh;ill be used for the purposes of making 
estimates : 

Sfhools, churches. the;:tres. auditoriums. .c'iii'f'RP!^- None. 

Apartments, residences, parish houses anil similar buildings. 15 pounds 

per scpiiii-o foot. 
Oftices, liotels, hospitals, asylums, college dormitories and similar build- 
injrs. 20 pounds per square fiiot. 
Live loads. — Live loads used in desiirn shall he in accordance with architect's 
specification, local or state regulations. lu absence of all these the minimum 
live load used shall be as follov.s: 

Pounds 

Apartments 40 

Asseml)ly halls (fixed seats) 80 

Assend)ly halls (movable .seats) 125 

Attics (not used for habitation or storage) 30 

Churches (ttxed seats) 80 

Churches (movable seats) 125 

Dance and Drill halls 150 

Dwellings 40 

Garages (The joists in garage floors shall not be spaced more than IS 

inches apart and the top slab shall not be less than 3 Inches thick) 125 

Hospitals, asylums, convents and detention buildings (bed and living 

room floors ) 40 

Same (public space, lirst floors and corridors) 80 

Hotels and clubs (living room lloors) 40 

Hotels and clubs (lirst lloors, corridors, and dining rooms) 80 

Municipal buildings, county buildings, court houses, libraries, museums, 

(corridors and public rooms) 100 

Same (private offices) 50 

Office buildings (first floor) 100 

Office buildings (private offices) 50 

Restaurants 80 

Schools (sch(K)l rooms, fixed seats) 50 

Schools (corridors, entrances, rooms without fixed seats) 80 

Stores 100 

Theatres (auditorium) 80 

Merrantile. manufacturing and storage buildings sliould not be 

estimated withdut data as to iirobable loads, but in no case shall the 

load be taken at less thau 100 pounds. 

Roofs south of latitude 37" 20 

Between latitude 37° and 45° 30 

North of latitude 45° 40 

Except that in high altitude the loads shall be taken as ten pounds 

greater than as given above. 

SECTION 4. DBAWIXCS AND SPECIFICATIONS 

4.1. I'lann FurviHlKd hy Bia/cr. — The TUiyer shall furnish the Seller a set of 
pbms showing the layout of all walls, cohuuns, beams, gir<lers and other sup- 
ports, as well as all fluor openings and partitions correctly dimensioned. The 
live loads to be assumed, the weights of partitions and the location and amount 
of any special loads such as fans, blowers, tanks, etc., shall be indicated. The 
level of finislied floors and njofs and the level of all joists bearings shall be shown. 

4.2. J'ldiis Furnialwd by teller. — The Seller shall furnish to the Buyer detailed 
plans showing the location of all joists with joists marked to correspond to 
bill of material and to the tags upon the joists. All necessary details and 
notes shall be supplied ta show the proiK-r installation of bridging, beam and 



91 

wall anchors, ceiling extensions, bearing plates, lath clips, screed clips and 
temperature steel. 

4.3. Discrepancies. — The Architect's plans will be assumed to be correct 
in absence of written notice from Buyer to the contrary. When detailed steel 
or concrete plans are furnished by Buyer which do not agree with Architect's 
plans, such detailed plans shall be considered as a written notice of change of 
plans. 

4.4. Approval. — The detailed plans prepared by the Seller shall be submitted 
to the Buyer for approval, unless Buyer instructs Seller to submit same 
directly to Architect. The Buyer (or Architect) shall return one copy of 
plans marked with his approval or with such corrections as he may deem 
necessary. The plans shall be corrected by the Seller if necessary, and re- 
lumed to the Buyer for final approval. The Seller shall not proceed with 
shop work until plans are finally approved by Buyer (or Architect). The 
Seller shall furnish to the Buyer as many blue prints of detailed plans as 
may bo reasonably necessary, but the tracings shall remain the property of 
the Seller. 

4.5. (Jhanges by Buyer After Apin-oval. — When any changes in plans are 
made by Buyer after approval of detailed drawings or any extra materials 
are required not shown on such drawings, the cost of such changes and/or 
extra materials shall be paid by the Buyer at a price to be agreed upon 
between Buyer and Seller at the time such changes and/or extra materials 
are ordered. 

SECTION 5. MATEELiiS 

5.1. Grade of Steel shall comply with the requirements of the Standard 
Specifications of the Steel Joist Institute. 

5.2. Joists shall be of any type meeting the requirements of the Standard 
Specifications of the Steel Joist Institute and shall be a Standard Joist as 
given in the Loading Table of the Steel Joist Institute. 

5.3. Maximum Lengths. — Joists shall not have a span exceeding twenty-four 
(24) times their depth. 

5.4. Bridging shall be of a type meeting the requirements of the Standard 
Specifications of the Steel Joist Institute. Wire bridging .shall not be used. 

5.5. Anchors for walls and beams shall comply with the Standard Specifica- 
tions of the Steel Joist Institute in size and number. 

5.0. Bearing of Joists shall not be less than 2yo inches net on steel and 4 
inches net on masonry. Bearing plates shall be provided if necessary to reduce 
the unit bearing pressure on masonry to not more than 200 pounds per square 
inch. 

5.7. Ceiling Extension-'^. — Whenever a ceiling is to be attached to the bottom 
chord of joists, a furring extension rod or unit shall be provided for each end 
of each joist when necessary to properly support ceiling. 

5.S. Headers. — Floor and roof openings not exceeding 4 feet in width meas- 
ui'ed at riglit angles to run of joists shall be framed with beam, angle, or chan- 
nel headers of ample strength to support joist reactions. Such header beams, 
angles or channels, together with necessary bolts, clips or other devices for 
securing same to trimmer joist as well as to joists supported, shall be furnished 
by Seller. When the reaction from such headers exceeds 400 pounds, the load 
shall be transmitted to the trimmer joist without relying upon bending in top 
or bottom chord. 

5.9. Paint. — All joists, before shipment, shall be given one coat of good paint 
by dipping or spraying. The base of such paint shall be an asphaltic bitumen 
containing not over 10% of carbon pigment and not over 10% of saponifiable 
material. The paint shall dry to a firm, elastic film before joists are loaded 
for .shipment and shall not soften .sufficiently to drip at 120° F. 

5.10. Inspection. — The Seller shall inspect all joists at time of fabrication 
and shall be responsible as to accuracy of size, span, assembly and the sulfi- 
ciency of welding. All other inspection work shall be at the expense of the 
Buyer and shall be performed at the Seller's place of manufacture. 

SECTION C. ERECTION 

6.1. The Seller shall not perform the work of erecting joists or accessories 
and shnll not be responsible for the safety of beams, columns, walls, or other 
supporting members. . 



92 

6.2. The Seller shall not be responsible for the actual dimensions of construc- 
tion work in field, but shall be resixtnsible for the accurate fabrication of joist 
materials in accordance with Architect's plans or any changed plans furnished 
by Buyer before final approval of shop drawings. 

0.3. The Seller shall furnish to Buyer proper instructions relative to methods 
of erection, bridging and anchoring of joists and the Buyer shall be responsible 
for the correct execution of such instructions. 

o 



Approved Code No. 496 
CODE OF FAIR COMPETITION 

FOR THE 

INDUSTRY OF COLLECTIVE MANUFACTURING 
FOR DOOR-TO-DOOR DISTRIBUTION 

As Approved on August 3, 1934 



ORDER 



Code of Fair Competition for the Industry of Collective Manu- 
facturing FOR DoOR-TO-DoOR DISTRIBUTION 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June IG, 1933', for approval of a Code of 
Fair Competition for the Industry of Collective Manufacturing for 
Door-To-Door Distribution, 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 : 
^ NO\V, THEREFORE, on behalf of the President of the United 
States, 1, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dat«d December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all resiDects 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, 
Administratoi' for hidustrial Recovery. 

Approval recommended : 
Robert L. Houston, 

Divisional AdTivinistrator. 

Washington, D.C. 

August 3, 19.34. 

78036° 1044-20 34 (93) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the Code of Fair Competition for the 
Industry of Collective Manufacturing for Door-to-Door Distribu- 
tion and on the Hearing conducted thereon in Washington, D.C. on 
April 24, 1934. 

The members of this Industry are engaged in the collective manu- 
facture of several classes of products, in the production of which 
machinery and labor are used intercliangeably. A further pecu- 
liarity which segregates them from other manufacturers of similar 
products is their method of distribution, which is through their own 
dealers, or agents, by door-to-door selling. The members of this 
Industry do not distribute their products through the regular out- 
lets used b}^ manufacturers of similar products, and thus there is no 
direct competitive conflict between this Code and other approved 
Codes for these products. Considerable study and investigation has 
convinced the Deputy Administrator that an attempt to make these 
manufacturers comply with the various Codes covering their prod- 
ucts would be burdensome if not iin]:)0ssible and that less adminis- 
trative detail will be involved under a separate Code of Fair 
Competition. 

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 rjeneral welfare by promoting the organization of 
industry for tlie ])urp<)se of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanctions and sui)er- 
vision, by eliminating unfair competitive practice, by promoting the 
fullest possible utilization of the present production capacity of in- 
dustries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and by otlierwise rehabilitating industry. 

(b) Said Indu.-try normal!}' 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- 

(94) 



95 

tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant group 
is an industrial group truly representative of the aforesaid Industry ; 
and that said group nnposes 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 Industry 
of Collective Manufacturing for Door-to-Door Distribution has been 
approved. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 
August 3, 1934. 



CODE OF FAIR COMPETITION FOR THE INDUSTRY OF 
COLLECTIVE MANUFACTURING FOR DOOR-TO-DOOR 
DISTRIBUTION 

Article I — PuRrosES 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Industry of Collective Manufacturing for 
Door-to-Door Distribution, and shall be the standard of fair compe- 
tition for such Industry and shall be binding upon every member 
thereof. 

Article II — Definitions 

Section 1. (a) The term "Industry of Collective Manufacturing 
for Door-to-Door Distribution " as used herein includes the manu- 
facturing, processing, converting, and/or distributing except retail 
distributing of products for personal and/or fiirm consumption, 
including household medicines; medicinal preparations for domestic 
animals; tea, coffee, and spices; food flavors and extracts, fillings 
and soft drink concentrates; soaps and cleansing preparations; per- 
fumes, cosmetics, and toilet articles ; insecticides, fungicides, disin- 
fectants, dijjs, and sprays for farm use ; and other ordinary food and 
household products; such products being distributed exclusively by 
the household door-to-door method. The above definition is, how- 
ever, limited to include only those engaged in the collective manu- 
facturing, processing, converting and distributing of at least five of 
the classes of products covered by this definition. 

(b) For the purposes of this definition all products included 
together under a separate Code of Fair Competition shall be con- 
sidered as belonging in the same class. 

(c) The term ''Collective", as applied herein to manufacturing, 
processing, converting and distributing, means the interchangeable 
utilization of employees and/or facilities in the manufacturing, 
processing, converting and distributing of two or more classes of 
products. The above definition shall be interpreted to include only 
those members, 90% of whose employees frequently spend a substan- 
tial part of their time in the manufacturing, processing, converting 
and distributing of two or more of the classes of products covered 
herein. 

(d) No manufacturer shall be included within the above definition 
if more than 50% of his total gross sales of products manufactured 
by him is derived from any one of the classes of products herein 
defined. 

(e) Members of this Industry insofar as their functions are gov- 
erned by this Code shall not be required to comply with any other 
Code or Codes of Fair Competition. 

(9C) 



97 

(f) In the event that any member of the Industry is engaged 
for its own consumption and use, and not for sale, in the noncollec- 
tive manufacturing, converting, processing or distributing operations 
of a class of jDroducts separately, the wage and hour provisions of 
this Code shall not apply to such separate noncollective operations, 
and in lieu thereof, the wage and hour provisions of the Code or 
Codes of Fair Competition applicable to such class or classes shall 
ai^ply. 

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

Section 3. The term " employer " as used herein includes anyone 
by whom any such employee is compensated or emploj^ed. 

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

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

Article III — Hours 

Section 1. No employee shall be permitted to work more than 
forty (40) hours in any one week or eight (8) hours in any twenty- 
four (24) hour period except as hereinafter provided. 

Section 2. No watchman, branch retail dealer service man, truck- 
man, engineer or fireman shall be permitted to work in excess of 
forty-eight (48) hours in any one week or eight (8) hours in any 
twenty-four (24) hour period. 

Section 3. The jDrovisions of this Article shall not apply to per- 
sons receiving $35 per week or more employed in an executive capac- 
ity; or as outside traveling collectors, auditors, service men and 
supervisors, sixty (60) per cent of whose working hours are spent 
outside the place of business of the member of the Industry. 

Section 4. (a) An employer may work an employee four (4) hours 
per week in excess of the hours specified in Section 1 of this Article 
provided that time and one half is paid for such additional hours. 
Employees specified in Section 2 may not work overtime except as 
provided in subsection (b) of this Section. 

(b) The maximum hours fixed in Sections 1 and 2 shall not apply 
to an employee in time of emergency involving breakdown or pro- 
tection of life or property, provided that at least time and one half 
is paid for all hours worked in excess of the maximum hours herein 
provided. An immediate report of all such cases shall be made to 
the Code Authority. 

Section 5. No employee shall he permitted to work more than 
six (6) days in any seven (T) day period. 

Section 6. No employer shall knowingly permit any employee to 
work for any time which when totaled with that already performed 
with another employer, or employers, exceeds the maximum per- 
mitted herein. 



98 

Section' T. The hours worked by any one employee in any one 
day shall be consecutive with the exception of a reasonable period 
for lunch. 

Articue IV — Wages 

Section 1. No employee sliall be paid less than at the rate of 
371/2^ per hour or $15.00 per week for forty (40) hours except as 
liereinafter specified. 

Section 2. (a) No betrinner or learner shall be paid less than 
eighty (80) per cent of the minimum rate; provided, however, that 
no employee shall be classed as a beginner or learner who has worked 
three (3) months in the Industry during his lifetime and that the 
total number of employees receiving pay at such sub-minimum rate 
shall not exceed five (5) per cent of the total number of employees 
of any one employer. 

(b)' A person whose earning capacity is limited because of age, 
ph^^sical or mental handicap, or other infirmity, may be emi)loyed 
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 Avages paid to, and the maximum hours of work for such 
employee. 

Section 3. When any part time employee shall work for one-half 
or less of the daily and weekly maximum hours prescribed for his 
class of employment he shall be paid at the rate of time and one 
half his normal rate of pay. 

Section 4. This Article establishes minimum rates of pay regard- 
less of whether an employee is compensated on a time rate, piece 
work, or other basis. 

Section 5. The weekly compensation for employment now in 
excess of the minimum wages herein provided shall not be reduced 
(notwithstanding that the hours worked in such employment may 
be hereby reduced) and all pay schedules whether for time or piece- 
work shall be equitably adjusted upward. Within sixty (60) days 
after the approval of this Code a report of all such wage adjust- 
ments shall be nuule by all members of the Industry to the Code 
Authority or the Acting Code Authority, which Authority shall 
make a full report thereon to the Administrator. 

Section 6. Female employees performing substantially the same 
work as male employees shall receive the same rates of pay as male 
employees. 

Section T. Wages shall be exempt from fines, charges, rebates, de- 
ductions, or any other form of withholding wages except for con- 
tributions voluntarily made by the employee or required by law. 
Employers shall pay wages at least at the end of every two weeks' 
period. 



99 

Article V — General Labor Pro\^sions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Indiistiy. No person under eighteen (18) years of 
age shall be employed at operations or occupations hazardous in 
nature or detrimental to health. The Code Authoritj^ shall submit 
to the Administrator within ninety (90) days after the effective 
date of this Code a list of such occupations. In any State, an em- 
ployer shall be deemed to have complied with this provision if he 
shall have on hie a certificate or permit duly issued by the authority 
in such State empowered to issue employment or age certificates or 
permits, showing that tlie emjjloyee is of the age required by this 
Section. 

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

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

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

Section 5. Within each State this Code shall not supersede any 
laws of such State imposing more stringent requirements on em- 
ployers regulating the age of employees, wages, hours of work, or 
health, fire, or general working conditions than under this Code. 

Section 6. Emplo3'ers shall not change the method of compensa- 
tion or reclassify employees or duties of occupations performed by 
employees or discharge employees to re-emplo}^ them at lower rates 
or engage in any other subterfuge so as to defeat the purposes of 
the Act or the provisions of this Code. 

Section 7. AH emploj-ers shall post and keep posted copies of 
this Code in conspicuous places accessible to all employees. Every 
member of the Industry shall comply with all rules and regulations 
relative to the posting of provisions of Codes of Fair Competition 
which may from time to time be prescribed by the Administrator. 

Section 8. Every employer shall provide for the safety and health 
of his employees at the place and during the hours of their employ- 
ment. Standards for safety and health shall be submitted bj^ the 
Code Authorit}^ to the Administrator within six (6) months after 
the effective date of this Code, and upon his approval shall become 
operative as a part of this Code. 

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

Section 10. No employer shall effect a per capita increase in pro- 
duction b}'' such means as the " stretch-out ". 



100 

Article VI — Administration 

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

ORGANIZATION AND RULES OF CODE AUTHORITY 

Section 1. The Code Authority shall consist of three individuals 
to be selected as hereinafter set forth, and of such additional mem- 
bers without vote as the Administrator, in his discretion, may appoint 
to represent such groups or Governmental agencies as he may 
designate. 

SEcnoN 2. Each member of the Industry shall have one vote in 
the nomination and election of the Industry members of the Code 
Authority providing he qualifies as provided in Section 8, Subsec- 
tion (h), Paragraph 2 of this Article. The Code Committee for the 
Industry of Collective Manufacturing for Door-to-Door Distribu- 
tion shall arrange for the nomination and election within 90 days 
after the effective date of this Code, subject to the approval of the 
Administrator. In the interim, the Code Committee shall serve 
as the Code Authority. The Code Authority, when elected, shall 
serve for a t<^rm not to exceed one 3'ear, when a new election shall 
be held. 

Section 3. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Au- 
thority shall (1) impose no inequitable restrictions on 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 the Adminis- 
trator may deem necessary to effectuate the purposes of the Act. 

Section 4. In order that the Code Authority shall at all times be 
truly representative of the Industry and in other respects comply 
with the provisions of the Act, the Administrator may provide such 
hearings as he may deem proper; and thereafter if he shall find that 
the Code Authority is not truly representative or does not in other 
respect comply with the provisions of the Act, may require an appro- 
priate 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 Authority, ex- 
ercising reasonable diligence in the conduct of his duties hereunder, 
be liable to anyone for any action or omission to act under this Code, 
except for his own wilful malfeasance or nonfeasance. 

Secttion 6. The Code Authority may coordinate the administration 
of this Code with such other Codes, if anj', as may be related to the 
Industry, or any subdivision thereof and may assist in promoting 
joint action upon matters of common interest by establishing a joint 
Advisory Board to which one or more of its members shall be 
delegated. 

Section T. If the Administrator shall at any time determine that 
any action of the Code Authority or any agency thereof may be 



101 

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

(b) To adopt rules and regulations and make all necessary pro- 
visions for its procedure in the administration of the Code. 

(c) To obtain from members of the Industry such information 
and reports as are required for the administration of the Code. In 
addition to information required to be submitted to the Code Au- 
thority, members of the Industry subject to this Code shall furnish 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act to such 
Federal and State agencies as he may designate ; provided that noth- 
ing 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 Govermnental 
agencies as may be directed by the Administrator. 

(d) To use such trade groups or 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 the Code and that such trade groups 
and agencies shall at all times be subject to and comply with the 
provisions hereof. 

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

(f) To appoint a Trade Practice Committee which shall meet 
with the Trade Practice Committees appointed under such other 
codes as may be related to the Industry for the purpose of fomiu- 
lating fair trade practices to govern the relationships between 
emplojj^ers under this Code and under such other Codes of Fair 
Competition to the end that such fair trade practices may be pro- 
posed to the Administrator as amendments to this Code and such 
other Codes. 

(g) 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. 



102 

(h) 1. It being found necessary in order to support the adminis- 
tration of this Code and to maintain the standards of fair competi- 
tion established hereunder and to elFectuate the policy of the Act, 
the Code Authority is authorized: 

A. To incur such reasonable oblijLrations 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 Avhich 
shall be held in trust for the purposes of the Code; 

B. To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he mav 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 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 members 
of the Industry complying with the code and contributing to the 
expenses of its administration as hereinabove provided, unless duly 
exempted from making such contributions, shall be entitled to par- 
ticipate 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 
prim- budget estimates except those which the Administrator shall 
have so approved. 

Article VII — Trade Practices 

Section 1. It is not the intent of this Code to give the members 
of the Industry an unfair competitive advantage over members of 
any competing or kindred industry. To this end, any provision now 
or later incorporated in the Codes covering such competing or 
kindred industries, the effect of which might place members of this 
Industry in unfair competition may be incorj^orated into this Code 
as applied to that class of products by the Administrator, after such 
notice and hearing as he may deem necessary. 

Section 2. In addition to the specific provisions contained herein, 
members of the Industry shall comply with any and all standards, 
including, but without limitation, quality, quantity, and size stand- 
ards, which shall be incorporated in the separate Codes covering the 
products manufactured or handled by members of the Industry, 
unless the Administrator shall upon request specifically exempt 
members of this Industry from such compliance. All such stand- 



103 

ards included in such codes shall have the same effect upon members 
of this industry as they would if specifically included in this Code. 

Section 3. (a) Within thirty (30) days after the effective date 
of this Code each member of the Industry shall file with the Code 
Authority a complete list of all individual products manufactured 
or handled by him and thereafter will notify the Code Authority 
of any changes in such list within ten (10) days after such change 
is effected, 

(b) The Code Authority shall supply the Administrator with a 
complete list of all products manufactured or handled by members 
of this Industry and shall notify the Administrator of changes in 
sjich list when changes occur. 

Section 4. Within thirty (30) days after the effective date of this 
Code, all members of this Industry snail file with the Code Authority 
all brand names owned or used by them. And thereafter new trade 
marks, brands or trade names shall be filed with the Code Authority 
within five (5) days after the adoption thereof. This provision shall 
aj)ply only to perfumes, cosmetics and toilet articles. 

Section 5. (a) Inaccurate Advertising. — No member of the In- 
dustry shall publish advertising (whether printed, radio, display, or 
of any other nature) which is misleading or inaccurate in any mate- 
rial particular, nor shall any member in any way misrepresent 
any products (including, but without limitation, their use, trade 
mark, grade, quality, origin, size, substance, character, nature, finish, 
material, content, preparation, curative or therapeutic effect), or 
credit terms, values, policies, services, or the nature or form of the 
business conducted. 

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

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

Section 6. False Billing. — No member of the Industry shall know- 
ingly withhold from or insert in any quotation or invoice any state- 
ment that makes it inaccurate in any material particular. 

Section 7. Secret Rebates. — No member of the Industrj^ shall 
secretly, directly or indirectly, offer or make any payment or allow- 
ance of a rebate, refund, commission, credit or 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 cus- 
tomer any special service or privilege not extended to all customers 
of the same class, for the purpose of influencing a sale. 

Section 8, Commercial 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 em- 
jDloyee, agent, or representative of another in relation to the business 
of the emi^loyer of such employee, the principal of such agent or the 
represented party, without the knowledge of such emploj^er, prin- 
cipal, or party. This provision shall not be construed to prohibit 
free and general distribution of articles commonly used for adver- 



104 

tising except so far as sneh articles are actually used for commercial 
briber}' as hereinabove defined. 

Section 9. Unearned Discount for Cash. — No member of the In- 
dustry shall allow a discount for cash Avhich is not earned by pay- 
ment in accordance with the cash discount terms s])ecified. 

Section 10. AduJterat/oii and M'tshrandlng. — The use of cereals, 
chicory, coffee screenin<rs, or other products compounded with coffee, 
unless containers be plainly and conspicuously labeled to indicate 
the presence of such fillers and the percentage content of such 
ingredients other than coffee or chicory. 

Section 11. Gifts to Clubs. — To give any coffee to social clubs, 
card parties, or other such groups when such coffee is to be given oy 
offered for sale in packages by such groups in competition with regu- 
jar dealers unless such gift shall be made to bona fide charitable 
agencies for strictly charitable purposes. 

Section 12. (a) The sale or offering for sale of any liquid house- 
hold insecticides, for use against flies, below the " minimum stand- 
ard " herein defined, or of any Pyrethrum products below the stand- 
ards defined by the United States Department of Agriculture, is 
unfair competition. 

(b) The term "minimum standard" as used herein, applied to 
liquid household insecticides for use against house flies, and shall 
mean not less than 60% kill, using the Peet-Grady test. 

Section 13. A tar disinfectant or pine disinfectant or mixture of 
both, shall bear a label containing a jjlain, conspicuous, correct and 
definite statement of the Bacillus typhosis phenol coefficient thereof, 
as determined by the methods prescribed and promulgated by the 
Secretary of Agriculture. No phenol coefficient shall be required 
upon a label or accompanying printed matter of other than tar dis- 
infectant or pine disinfectants, or mixture of both, but may be per- 
mitted on disinfectants or germicides other than tar disinfectants or 
pine disinfectants under such rules and regulations as may be pro- 
mulgated by the Secretary of Agriculture. 

Article VIII — Modification 

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

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

Article IX — IMonopolies 

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



105 

Akticle X — Price Increases 

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

Article XI — Effective Date 

This Code shall become effective on the tenth day after its approval 
by the Administrator, 

Approved Code No. 496. 
Registry No. 105-02. 

O 



^ 



? 



AMENDMENTS 



80835—34 2 



Approved Code No. 244F — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

ELECTRICAL CONTRACTING INDUSTRY 

As Approved on July 23, 1934 



ORDER 



AppRO^^XG Modification of Supplementary Code of Fair Compe- 
tition FOR THE Electrical Contracting Industry 

A division of the construction industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1934, for approval of a modifica- 
tion to Section 3, Article III of the Supplementary Code of Fair 
Competition for the Electrical Contracting Division of the Construc- 
tion Industry, and due notice and opportunity to be heard having 
been given thereon and the annexed report on said modification, 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 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 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 Adm inistvatar^ 

Washington, D.C, 

July 23, 103 If. 

(107) 



REPORT TO THE PRESIDENT 

The President, 

TJie White House. 

Sir: This is a report on a modification of Section 3. Article III, 
of the Supplementary Code of Fair Competition of the Electrical 
Contracting: Division of the Construction Industr}', approved by 
you on April 19, 1934. 

The purpose of this amendment is to authorize the Divisional 
Code Authority to submit a budget and establish a basis of assess- 
ment upon Avhich members of this Division will be required to con- 
tribute to the expense of nuiintaining the Divisional Code Authority. 

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 tliis nuitter : 

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 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 
unfair comi)etitive practices, by promoting the fullest possible util- 
ization of the present productive capacity of industries, by avoiding 
imdue restriction of production (except as nuiy be temporarily re- 
(juired), by increasing the consumption of industrial and agricul- 
tural ]U'oducts through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) The Code as modified comi)lies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tati(m sub-section (a) of Section 3, sub-section (a) of Section 7 and 
sub-section (b) of Section 10 thereof. 

(c) The Code em})owers the Code Authority to present the afore- 
said moditication 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 
operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 
not be(m deprived of the right to be heard ])rior to api)roval of said 
amendment. 

For these reasons this modification has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 

July 23, 1934. 

(108) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE ELECTRICAL CONTRACTING INDUSTRY 

A DIVISIOX OF THE CONSTRUCTION INDUSTRY 

Chapter VI 

Amend Section 3 of Article III. Administration, so as to read as 
follows : 

Section 3. 1. It beino; 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 Divisional 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 opjjortunit}- to be heard as he may deem necessary 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the funds neces- 
sary to support such budget shall be contributed by members of this 
Division ; 

(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 this Division, and 
to that end. if necessaiy to institute legal proceedings therefor in 
its own name. 

2. Each member of this Division shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the Divisional Code 
Authority, determined as hereinabove provided, and subject to rules 
and regulations pertaining thereto issued by the Administrator. 
Only members of this Division complying with the Code and con- 
tributing to the expenses of its administration as hereinabove pro- 
vided (unless duly exempted from making such contribution), shall 
be entitled to participate in the selection of members of the Divisional 
Code Authority or to receive the benefits of any of its voluntary ac- 
tivities or to make use of any emblem or insignia of the National 
Recovery Administration. 

3. The Divisional 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 Admini.strator ; and no 
subsecjuent buclget shall contain any deficiency item for expenditures 
in excess of prior budget estimates except those which ithe Admin- 
istrator shall have so approved. 

Approved Code No. 244F — Amendment No. 1. 
Registry No. 1211-1-08. 

(109) 



Approved Code No. 244G — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

MASON CONTRACTORS INDUSTRY 

As Approved on July 23, 1934 



ORDER 



Approving Modification of Supplementary Code of Fair Compe- 
tition FOR THE Mason Contractors Industry 

A division of the construction industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Recovery 
Act, approved June 16, 1934, for approval of a modification to Sec- 
tion 2, Article III, of the Code of Fair Competition for the Mason 
Contractors Division of the Construction Industry, and due notice 
and opportunity to be heard having been given thereon and the 
annexed report on said modification, containing findings with re- 
spect 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 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 is herebj'^ approved, and that the previous approval of said Code 
is hereby modified to include an approval of said Code in its en- 
tirety as modified. 

Hugh S. Johnson, 
- AdmirdstJ'afor for Industrial Recovery. 

Apj)roval recommended : 
Geo. L. Berry, 

Division Administrator.. 



Washington, D.C, 

July 23, 193^. 



(Ill) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on a modification of Section 2. Article III, of 
the Supplementary Code of Fair Competition of the Mason Con- 
tractors Division of the Construction Industry, approved by you on 
April 19. 1934. 

The purpose of this amendment is to authorize the Divisional Code 
Authority to submit a budgret and establish a basis of assessment 
upon which members of this Division will be required to contribute to 
the expense of niaintainin<r the Divisional Code Authority. 

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 i)roceedings 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 ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and wnll 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 caj^acity 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 b}^ otherwise rehabilitat- 
ing industry. 

(b) The Code as modified complies in all respects with the perti- 
nent provisions of said title of said Act, including without limitation 
sub-section (a) of Section 3. sub-section (a) of Section T 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 wdiole. 

(d) The modification and the Code as modified are not designed to 
and will not ])ermit 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 
ojjerate 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 modification has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator^ 
July 23, 1934. 

(112) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE MASON CONTRACTORS INDUSTRY 

A DI\^SION or THE CONSTRUCTION INDUSTRY 

Chapter VIII 

Amend Article III by deleting, in their entirety, the provisions of 
the present Section 2 thereof and substituting therefor the following : 

Section 2. 1. 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 Divisional 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 
i^urposes. and (2) an equitable basis upon which the funds necessary 
to support such budget shall be contributed by members of this 
Division : 

(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 this Division, and 
to that end, if necessary, to institute legal proceedings therefor in its 
own name. 

2. Each member of this Division shall pay his or its equitable 
contribution to the expenses of the maintenance of the Divisional 
Code Authority, determined as hereinabove provided, and subject to 
rules and regulations pertaining thereto issued by the Administrator. 
Only members of this Division complying with the Code and con- 
tributing to the expenses of its administration as hereinabove pro- 
vided (unless duly exempted from making such contribution) shall 
be entitled to participate in the selection of members of the Divi- 
sional 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 Divisional Code Authority shall neither incur nor pay any 
obligation substantially 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 ex- 
penditures in excess of prior budget estimate except those which the 
Administrator shall have so approved. 

Approved Code No. 2'44G — Amendment No. i. 
Registry No. 1015-02. 

(113) 



Approved Code No. 384 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FUNERAL SERVICE INDUSTRY 

As Approved on July 24, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Funeral Service Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Funeral Service In- 
dustry, and opportunity to be heard having Ijeen duly given thereon 
and tile annexed report on said amendment, containing findings Avith 
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. 651:3-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 : 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

July ^4, 193Jf. 

(115) 



REPORT TO THE PRESIDENT 

The Presidext, 

The White House. 

SiK : 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 
Funeral Service Industry, submitted by the Code Authority for tho 
Funeral Service Industry. 

The puri)ose and etfect of tlie amendment are to authorise the 
Code Authority to submit a budiret and method of assessment upon 
which funds shall be contributed bj' members of the Industi-y. 

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 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 ainended complies in all respects with the perti- 
nent ])rovisions 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 em])oAvers 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 ])ermit 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. 

(116) 



117 

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

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

Hugh S. Johnson, 

Administrator. 
July 24, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE FUNERAL SERVICE INDUSTRY 

(1) Amend Article VI by inserting a new section to be loiown as 
Section 8 as follows: 

" 8 (a) It being found necessary in order to support the adminis- 
tration of this code and to maintain the standards of fair competi- 
tion established 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. 

''(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 Administra- 
tor. Only members of the industry complying with the Code and 
contributing to the expenses of its administration as hereinabove 
provided, (unless duly exempted from making such contributions) 
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. 

''(c) The Code Authority shall neither incur nor pay any obliga- 
tion substantially in excess of the amount thereof as estimated in 
its approved budget, and shall in no event exceed the total amount 
contained in the approved budget, except u))on approval of the 
Administrator first obtained; and no subsequent budget shall con- 
tain any deficiency item for expenditures in excess of prior budget 
estimates except those which the Administrator shall have sO' 
approved." 

(2) Amend Article VI. Section 6. by deleting sub-section (g). 

Approved Code No. 384 — Ampiidnient No. 1. 
Registry No. 1749-04. 

(118) 



Approved Code No. 199 — Amendment No, 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CORK INDUSTRY 

As Approved on July 25, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the Cork; 

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 Cork 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, 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 Administrator before that time and 
the Administrator issues a subsequent order to that effect, 

Hugh S, Johnson, 
Admmhtratov For Industrial Recovery. 

Apj^roval recommended : 
George L. Berry, 

Division Administrator. 

Washington, D.C, 

Juhj 25, 193^. 

(119) 



KEPORT TO THE PRESIDENT 

The President, 

The 'Wh'ite House. 

Sir: An ai^plication 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 
Cork Industry, submitted by the Code Authority for the Cork 
Industry. 

The purpose and effect of the amendment are to make the Code 
applicable to manufacturers only, which was the original purpose 
and intent, and to remove anomalous conditions which have arisen 
under the i)ractical t)peration of the Code. 

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 purj^oses of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign connnerce 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 
restrictions of i>roduction (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 
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 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 j^ermit mono})olies or monopolistic practices. 

(d) The amendment and the Code as amended are not designed 
to and will iMjt eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(120) 



121 

(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, 

Adm'mistraior. 
July 25, 1934. 



80835—34- 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE CORK INDUSTRY 

Amend Article II by eliminating therefrom Section 2 and sub- 
stituting therefor a new Section 2 as follows : 

" Sec. 2. The term ' industry ' as used herein, includes the manu- 
facture and sale of the products of the industry, and branches or 
subdivisions thereof as may from time to time be included under 
the provisions of this Code." 

Approved Code No. 199 — Amendment No. 1. 
Registry No. 308-1-01. 

(122) 



Approved Code No. 384 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FUNERAL SERVICE INDUSTRY 

As Approved on July 25, 1934 



ORDER 



Modification of Code of Fair Competition for the Funerai> 
Service Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for a modification of my 
Order of approval, dated April 4, 1934, of the Code of Fair Compe- 
tition for the Funeral Service Industry, and it having been shown 
that said application should be granted and that said Order should 
be modified : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to the authority vested in me by Executive Orders of the 
President including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise ; do hereby modify my Order of approval of the 
Code of Fair Competition for the Funeral Service Industry, dated 
April 4, 1934, in the following particular : 

The last paragraph of said 'Order of approval, dated April 4, 

1934, be and it hereby is modified to read as follows : 

" Provided, however, that nothing contained in this section shall 
supersede any state law which by its terms expressly authorizes 
a member of this industry to organize, promote, participate in and 
operate a form of enterprise prohibited herein." 

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

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

Washington, D.C, 

July 25, 193 Jf. 

(123) 



IIEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: In the Order of Approval of the Code of Fair Competition 
for the Funeral Service Industry, Section 13 of Article VII was 
amended by chaniiing the period to a comma after the word " serv- 
ice " in the ninth line thereof and adding the following : 

•' Provided, however, that nothing contained in this Section shall 
supersede any state law which by its terms permits any of the 
practices described herein by members of the industry." 

After the approval of the Funeral Service Industry Code the 
original proponents of the Code as well as several members of the 
Industry conferred with me and it develops that the wording of this 
last paragraph of m^^ Order of Approval of this Code is not clear, 
as to its intent. 

Therefore in order to maintain the original intent of the last para- 
graph of the order of ajDproval and to clarify its meaning, I recom- 
mend the modification of this last paragraph by substituting the 
following: 

" Provided, however, that nothing contained in this section shall 
supersede any state law which by its terms expressly authorizes a 
member of this industry to organize, promote, participate in and 
operate a form of enterprise prohibited herein." 
Respectfully, 

Hugh S. Johnson, 

AdTTiin hivator. 

July 25, 1934. 

Approved Code No. 384 — Aiiieudiiieiit No. 2. 
Registry No. 174&-04. 

(124) 



Approved Code No. 161 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FUR DRESSING AND FUR DYEING INDUSTRY 

As Approved on July 25, 1934 



ORDER 



Approving ]MoDiriCATiONS to Code of Fair Competition for the 
Fur Dressing and Fur Dyeing 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 modifica- 
tions to a Code of Fair Competition for the Fur Dressing and Fur 
D3"eing 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, THERFORE, 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 herebj'^ incorporate, by reference, said an- 
nexed report and do find that said modifications and the Code as 
constituted after being modified comply in all respects with the 
pertinent prpvisions 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. 

Hugh S. Johnson, 
Achninistratoi' for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Administrator. 

Washington. D.C, 

July 25, 193 'i. 

(125) 



REPORT 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 Dyeing Industry, on 
which a public hearing was held on July 10, 1934. 

The first modification will enable the majority of the members 
of the Code Authority Board to recommend such modifications to 
the Code as will be beneficial to the entire industry. This will facili- 
tate efficient working of the Code Authority. 

The second modification empowers the Administrator to suspend 
any action of the Code Authority to afford an opportunity for in- 
vestigation of the merits of such action, and thereby assures the 
Administrator that all actions of the Code Authority will be to the 
best interest of the industry and the public. 

The Deputy Administrator in his hnal report to me on said modi- 
fications 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 gen- 
eral welfare by promoting the organization of trade 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 possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by in- 
creasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as modified complies in all respects with the 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 
3ub-section 10 thereof. 

(c) The modification and the code as modified are not designed to 
and will not permit monopolies or monopolistic practices. 

(d) The modification and the code as modified are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(126) 



127 

(e) Those engaged in other steps of the economic iDroces3 have not 
been deprived of the right to be heard prior to approval of said 
modification. 
For these reasons this modification has been approved. 
KespectfuUy, 

Hugh S. Johnson, 

Ad/ministrator. 
July 25, 1934. 



MODIFICATION TO CODE OF FAIR COMPETITION FOR 
THE FUR DRESSING AND FUR DYEING INDUSTRY 

1. Paragrai^h (c), Section 8, Article VI, be modified to read as 
follows : 

(c) No reorganization of the Code Authority Board or reclassi- 
fication of the divisions in the industry, shall be made over the 
dissent of any one of the divisional planning committees, except as 
and where tlie President, or the Administrator, may make such 
reorganization or reclassification under the law, without the assent 
of the parties affected. 

2. A new paragraph to be known as paragraph (e). Section 8, 
Article VI. to read as follows: 

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

Approved Code No. 161 — Amendment No. 3. 
Registry No. 911-28. 

(128) 



Approved Code No. 155 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

OXY-ACETYLENE INDUSTRY 

As Approved on July 26, 1934 



OEDEE 



Approving Amendments of Code of Fair Competition for the 
oxy-acetttlene industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Eecovery Act, approved June 16, 1933, for approval of amendments 
to a Code of Fair Competition for the Oxy-Acetylene Industry, and 
hearings having been duly held thereon and opportunity to object 
having been given and the annexed report on said amendments con- 
taining findings with respect thereto having been made and directed 
to the President: 

NOW, THEEEFOEE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Eecovery, 
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 amendments and the Code as 
constituted after being amended comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said amendments 
be and they are hereby approved, and that the previous approval of 
said Code is hereby moclified to include an approval of said Code 
in its entirety as amended, provided that said amendments and this 
Order shall become effective on the fifth day after the date hereof. 

Hugh S. Johnson, 
Administrator for IndustHal Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

July 26, 193J^. 

(129) 



REPORT TO THE PRESIDENT 

The President, 

The White Bouse. 

Sir : This is a report on the proposed amendments to the Code of 
Fair Competition for the Oxy-Acetylene Industry as approved by 
you on December 15, 1933. The public hearing on all but one of 
these amendments was held in the City of Washington, D. C. on 
May 15 and IG. 11)3-1. The additional amendment was filed subse- 
quent to this hearing and a notice of opportunity to be heard was 
published on June 29, 1934. Full opportunity was given to all 
interested parties to appear or to be heard. 

The purposes and effects of the amendments on which the public 
hearing was held are as follows: 

Amendment No. 1 revises the definition of " member of the In- 
dustry " to clarify same and amendment No. 2 eliminates the defini- 
tion of " member of the Code " which is unnecessary. 

Amendment No. 3 adds definitions for " reseller " and " consumer ", 
terms used in subsequent amendments. 

Amendment No. 4 exempts from the maximum hours provisions 
employees working in a technical capacity, who receive more than 
$35.00 per week. This is because the operation of plants frequently 
depends on the work of employees of a technical capacity. 

Amendment No. 5 changes the method of election of the Super- 
vising Agencv. It provides that five out of ten members of the 
Supervising Agency shall be elected on a basis of dollar volume of 
the business and that the other five members shall be elected by 
equal votes cast by units of the Industry. 

Amendment No. 6 deletes Section 4 of Article VI as the subject 
matter of this section is covered in amendment No. 5. 

Amendment No. 7 merely changes the designation number of Sec- 
tion 5 of Article VI. 

Amendment No. 8 provides for the appointment of a Trade Prac- 
tice Committee in accordance with Administration policy. 

Amendment No. 9 enables the Supervising Agency to incur such 
reasonable obligations as are necessary for the administration of the 
Code. It requires that the Supervising Agency submit for approval 
of the Administrator an itemized budget and an equitable basis of 
pro-rating the assessments to be collected from the members of the 
Industry. Payment of an equitable contribution to the expenses of 
the Supervising Agency by members of the Industry is made manda- 
tory by this amendment if their principal line of business is covered 
by this Code. 

Amendment No. 10 changes the designation by number of Article 
VII to Article VII-A, Trade Practices — General Provisions. 

Amendment No. 11 applies to Section 3 of Article VII (to be Ar- 
ticle VII-A) and provides two optional methods of calculating 

(130) 



131 

rental. The Code as approved did not contain any specification as 
to the method of calculating rental. 

Amendment No. 12 pertains to Section 4 of Article VII (tob(* 
Article VII-A) and provides that the price to be charged for alt 
gases ,sold may be an f.o.b. freight station price as well as an f.o.b. 
plant or warehouse price. This amendment is of benefit to the con- 
sumer because when shipments are made by rail no charge is made 
for delivery of the goods from plant or warehouse to the freight 
station. 

Amendment No. 13 is a revision of Section 8 of Article VII (to be 
Article VII-A). It exempts medical gases sold on a gallonage basis 
for medical use only from the application of Sections 3, 4, 6 and 11. 

Amendment No. 14 places in the Code as Section 9 of Article VII 
(to be Article VII-A) the standard bribery trade practice provision. 

Amendment No. 15 provides as a new Section 10 of Article VII 
(to be Article VII-A) for the prohibition of lending, leasing or 
giving away of apparatus under certain conditions. This provision 
represents a compromise of different provisions proposed, by two 
factions of the Industry, namely, those manufacturers interested in 
the manufacture and sale of gas and apparatus and those interested 
in the manufacture and sale of apparatus only. Because of the con- 
troversial nature of this provision the Supervising Agency voted at 
their meeting on June 6 and 7, 1934, to postpone action on same. 
An agreement was reached later and eight out ten members of the 
Supervising Agency have assented, one member not voting. 

Amendment No. 16 places in the Code a new Section 11 of Article 
VII (to be Article VII-A) pertaining to agreements between mem- 
bers of the Industry and resellers or gas. It is required that re- 
sellers of gas are bound in the handling of such products to comply 
with the provisions of Sections 1, 3 and 4 of Article VII (to be 
Article VII-A), provided, however, that nothing in this section shall 
be construed to mean that resellers of gas are bound to file the same 
rental or delivery charges filed by any member of the Industry. 
There are no provisions in the Code concerning the prices at which 
the products of the Industry are sold nor does it include any provi- 
sion for the open filing of prices. All resellers of gas received a 
notice of the public hearing and all objections were met in revising 
the provision as proposed for approval. 

Amendment No. 17 creates Article VII-B and provides trade 
practice provisions, which are self-explanatory, for the medical gas 
division of the business. 

Amendment No. 18 changes the term " members of the Code " 
wherever used in the Code as approved to read " members of the 
Industry." 

The purpose and efi^ect of the amendment which was submitted 
subsequent to those on which the public hearing was held is as 
follows : 

Amendment No. 19 places in the Code a new Section 12 of Article 
VII (to be Article VII-A) and provides, in connection with con- 
tracts in effect prior to the effective date of the Code, that the trade 
practice provisions contained in Sections 3, 4 and 5 of Article VII 
(to be Article VII-A) shall not apply if they were not specified in 
such contracts but that said provisions shall apply with re?pect to 



132 

extended or renewal periods of any such contract when extended or 
-renewed by a member of the Industry. This amendment clears up a 
difficulty which the Industry has experienced in connection with con- 
^tracts which were in effect prior to the effective date of the Code. 

FINDINGS 

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

I find that: 

i(a) The amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the general 
welfare by promoting tlie organization of inchistry 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 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 perti- 
nent provisions of said Title of said Act, including without limitation 
sub-secti(m (a) of Section 3, sub-section (a) of Section 7 and sub- 
section (b) of Section 10 thereof. 

(c) The National Oxygen and Acetylene Association was and is an 
industrial association truly representative of the aforesaid Industry 
and that said association imposed and imposes no inequitable restric- 
tions on admission to membership therein and has applied for these 
amendments. 

(d) These amendments and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) These amendments 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. 

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

For these reasons, these amendments have been approved. 
Respectfully, 

Hugh S. Johnson, • 
Administrator. 
July 26, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE OXY-ACETYLENE INDUSTRY 

Amendment 1. In Article II — Definitions: For the present para- 
graph defining '' member of the Industry " substitute the following : 

"• The term ' member of the Industry '' as used herein includes, but 
without limitation, any individual, partnership, association, corpora- 
tion or other form of enterprise engaged in the Industry, either as an 
employer or on his or its own behalf." 

Amendment 2. In Article II — Definitions: Delete the paragraph 
defining " member of the Code." 

Amendment 3. In Article II — Definitions : Immediately following 
definition of " member of the Industry " insert the following two 
paragraphs : 

" The term ' reseller ' as used herein includes any person, firm or 
other form of enterprise, selling under the name and trademark of 
another, any product of the Industry, 

" The term ' consumer ' as used herein means the user of any 
product of the Industry as differentiated from the reseller." 

Amendment 4. In Article III — Hours, Section 1, Line 5 : Delete 
the word " or " and insert between the words " executive " and 
" capacity " the words " or technical." Also add to Section 1 the 
following : 

" The exception of employes in a technical capacity is not to 
include any skilled operating employes or draftsmen." 

As so modified said Section will read as follows : 

" Section 1. On and after the effective date employers in the 
Industry shall not operate on a schedule of hours of labor for any 
of their employees (except any person employed as a salesman^ 
engineer, fireman, loader, truck driver, or watchman, or employed in 
a managerial, executive or technical capacity and receiving more 
than $35.00 per week) in excess of an average of forty (40) hours 
per week over any period of six (6) weeks, or in any event more 
than forty-eight (48) hours in any one week. The exception of 
employees in a technical capacity is not to include any skilled 
operating employes or draftsmen." 

Amendment 5. In Article VI — Administration: Substitute for 
the present Section 1 the following: 

" Section 1. This Code shall be administered by a Supervising' 
Agency of ten (10) persons chosen and elected by the members of 
the Industry as follows : 

"(a) At an election wherein each member of the Industry having 
a net sales volume of products of the Industry of $100,000.00 or 
less per annum shall be entitled to one vote and each member of 
the Industry having a net sales volume in excess of $100,000.00 per 
annum shall be entitled to one vote with respect to $100,000.00 of 

(133) 



134 

such sales volume and one vote with respect to each $200,000.00 or 
fraction thereof that such sales volume shall be in excess of $100,- ; 
000.00, five (5) members of the Supervising Agency may be elected ) 
and the five (5) individuals receiving the greatest number of votes 
at such election shall become members of the Supervising Agency. 

"(b) At an election wherein each member of the Industry is 
entitled to cast one vote, five (5) members of the Supervising Agency 
shall be elected. 

"(c) The members of the Agency so elected shall serve for the 
period of one year from the date of their election or until their 
successors are elected and qualified. 

"(d) In the event of the death or resignation of a member of the 
Supervising Agenc}", his successor shall be elected in the same man- 
ner as the retiring member. 

'"(e) No affirmative action can be taken by the Supervising Agency 
unless seven (7) members thereof vote in favor of such action. 

''(f) In addition to the membership as above provided, there may 
be not more than three (3) members, without vote and without 
compensation from the Industry, to be known as Administration 
Members, to be appointed by the Administrator to serve for such 
terms as he may specify. 

"(g) The provisions for a Supervising Agency as contained in 
Section 1 of Article VI as originally adopted in this Code shall 
remain in force and effect until the election and qualification of a 
Supervising Agency in accordance with the foregoing provisions." 

Amendment 6. In Article VI — Administration: Delete Section 4. 

Amendment 7. In Article VI — Administration : Amend Section 5 
to designate the same Section 4, in view of the elimination of Section 
4 reported above, numbered 6. 

Amendment 8. In Article VI — Administration: Add a new sec- 
tion to be numbered Section 5 and to read as follows : 

" Section 5. The Supervising Agency shall appoint a Trade Prac- 
tice Committee which shall meet with the Trade Practice Commit- 
tees api^ointed under such other Codes as may be related to the 
Industry for the purpose of formulating fair trade practices to 
govern the relationships between members of the Industry under 
this Code and members of other industries 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." 

Amendment 9. In Article VI — Administration : Substitute for the 
present Section 6 the following: 

" Section 6. (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 Supervising Agency 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 



135 

purposes, and (2) an equitable basis upon which the funds necessary 
to support the 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. 

"(B) Each member of the Industry shall paj^ his or its equitable 
contribution to the expenses of the maintenance of the Supervising 
Agency, determined as hereinabove provided, and subject to rules 
and regulations j)ertaining 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, (unless duly exempted from making such contribution) shall 
be entitled to participate in the selection of members of the Super- 
vising Agency or to receive the benefits of any of its voluntary activi- 
ties or to make use of any emblem or insignia of the National 
Recovery Administration. 

"(C) The Supervising Agency 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." 

Amendment 10. Change the designation of Article VII — Trade 
Practices, to Article VII-A^ — Trade Practices — General Provisions. 

Amendment 11, In Article VII, to be Article VII-A : In Section 3, 
change the semicolon at the end of said section to a period, and add 
the following: 

" Such rental may be calculated (a) by the " Numerical System ", 
i.e., a computation for each individual cylinder, or (b) by the " Cylin- 
der Quantity " method, i.e., a monthly computation based on the 
number of da,ys cylinders are retained by customers in excess of thirty 
(30) days, without regard to any individual cylinder. It shall not 
be permissible to consolidate for rental computation purposes the 
cylinder records of any given customer having more than one receiv- 
ing point, except for such points as are strictly temporary in char- 
acter and/or where customer's receiving points are so near to each 
other that the interchange of cylinders naturally and commonly 
occurs." 

Amendment 12. In Article VII, to be Article VII-A : In Section 
4, after the word " warehouse " insert the words "or freight station 
at the point of origin of shipment " and rearrange wording of clause 
(1) to read as follows: 

" (1) a price f.o.b. plant, warehouse or freight station at the point 
of origin of shipment; " 

As so revised said Section 4 will read as follows : 

" Section 4. Failing to charge for all gases sold (1) a price f.o.b, 
plant, warehouse or freight station at the point of origin of ship- 
ment; (2) a delivery charge to be filed by each member of the In- 
dustry with the Supervising Agency which shall be open to inspec- 
tion by any member of the Industry, or otherwise interested party;" 



136 

Amendment 13. In Article VII, to be Article VII-A : Revise Sec- 
tion 8 to read as follows : 

" Section 8. Sections 3, 4, 6 and 11 of Article VII-A do not apply 
to medical gases when sold on a gallonage basis for medical use 
only," 

Amendment 11. In Article VII, to be Article VII-A: Insert a 
new Section 9 to read as follows : 

'" Section 9. No member of the Industry shall give, permit to be 
given or directly offer to give anything of value for the purpose of 
influencing or rewarding the action of any employee, agent or repre- 
sentative of another in relation to the business of the employer of 
such employee, the principal of such agent or the represented party, 
without the knowledge of such employer, principal or party. Com- 
mercial bribery provisions shall not be construed to prohibt 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." 

Amendment 15. In Article VII, to be Article VII-A : Insert a new 
Section 10 to read as follows : 

" Section 10. Lending, leasing or giving away apparatus designed 
to use oxygen or acetylene, or substitutes therefor, in cutting or 
welding of metals by hand, as differentiated from automatic, semi- 
automatic or electrically-powered apparatus or equipment or acces- 
sories used therewith or manifolds or distributing systems. 

"This provision shall not apply to (a) railroad companies; (b) 
other consumers with whom lending or leasing arrangements were 
in effect prior to June 18, 1934, provided a record of such consumers 
and evidence that such arrangements were in effect prior to said date 
is filed with the Chairman of the Supervising Agency within fifteen 
(15) days after the effective date of this modification; (c) competi- 
tive situations caused otherwise than by a member of the Industry, 
provided that full details shall be reported to the Chairman of the 
Supervising Agency immediately following the execution of any 
agreement made pursuant to this sub-section (c)." 

Amendment 16. In Article VII, to be Article VII-A: Insert a 
new Section 11 to read as follows: 

" Section 11. All agreements between members of the Industry 
and resellers of gases shall specify that the reseller is required and 
bound in the handling of such products to comply with the provi- 
sions set forth in the foregoing Sections 1, 3 and 4, provided, how- 
ever, that nothing in this Section shall be construed to mean that 
resellers of gas are bound to file the same rental or delivery charges 
filed by any member of the Industry ; and it shall also be mandatory 
on members of the Industry either to require correction of any re- 
})orted infraction of such Sections by a reseller or to terminate its 
agreement with such reseller within thirty (30) days after notice 
from tlie Supervising Agency that such reseller has been guilty of 
and has not corrected such infraction." 

Amendment 17. After the end of Article VII, to be Article VII-A r 
Insert a new Article VII-B — Trade Practices — Special Medical 
Gas Provisions, to read as follows : 

" In addition to the trade practices set forth in Article VII-A, 
the following practices in the manufacture and distribution of 



137 

medical gases constitute unfair methods of competition and are 
prohibited : 

" Section 1. Consigning or storing products of the Medical Gas 
Industry on property of any user or purchaser or prospective pur- 
chaser thereof to be paid for as sold. 

" Section 2. Giving or lending any products or equipment or 
other facilities in conjunction with the use of Medical Gases with- 
out making adequate and proper charge therefor, as an inducement 
to obtain any competitor's business by contract or otherwise; pro- 
vided, however, that this provision shall nto be construed to prohibit 
the placing of equipment on trial or approval in good faith for a 
period not to exceed thirty (30) days. 

" Section 3. Within sixty (60) days from the effective date of this 
amendment each member of the medical gas division shall file a 
schedule of monthly cylinder rental charges, individually prepared 
by the members, with the Supervising Agency, which schedule shall 
take effect immediately upon being filed and shall be based upon 
the net value of cylinders outstanding at the end of each month 
with an allowance of a normal free loan period without rental 
charges of thirty days, which under no circumstances shall be ex- 
tended beyond ninety (90) days. 

" Each schedule may be changed by filing with the Supervising 
Agency revised schedule to take effect also immediately upon filing. 
The Supervising Agency shall make such prices available to the 
inspection by the public at its official place of business during usual 
office hours. No member of the medical gas division shall charge 
less for rental of cylinders than the rate set forth on a cylinder 
rental charge schedule as filed with the Supervising Agency, or 
rebate such charge if justly made." 

Amendment 18. In Article IX, lines 8, 13 and 15, change the 
term " members of the Code " to read " members of the Industry." 

Amendment 19. In Article VII, to be Article VII-A: Add the 
following Section 12 : 

" Section 12. The provisions set forth in the foregoing Sections 3, 
4 and 5 shall not be construed to require making or collecting charges 
for or with respect to products of the Industry sold under contracts 
in effect at the effective date of the Code, other than the charges 
provided for in such contracts; provided, however, that the said 
provisions shall apply with respect to extended or renewal periods 
of any such contract extended or renewed by a member of the 
Industry." 

Approved Code No. 155 — Amendment No. 1. 
Register No. 1150-02. 



80835—34- 



Approved Code No. 219 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BEDDING MANUFACTURING INDUSTRY 

As Approved on July 27, 1934 



OKDER 



Approving Amendment of Code of 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 vestecl in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dat^d December 30, 
1933, and otherwise; do hereby incorporate, by reference said an- 
nexed report and do find that said amendment and the Code as 
constituted after being amended comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said amendment 
be. and it is hereby approved, and that the previous approval of 
said Code is hereby modified to include an approval of said Code 
in its entirety ag amended. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

July 27, 193 It. 

(139) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the amendment of the Code of Fair Com- 
petition for the Bedding Manufacturing- Industry as approved by 
me January 23, 1934. Application Avas made under date of May 4, 
1934, by the Code Authority for the Bedding Manufacturing Indus- 
try, for amendment of the provisions of Article VIII of the Code. 
Fair notice of opportunity to file objections to this proposed amend- 
ment was given to all interested parties. 

This amendment is drawn up and has been proposed in accordance 
with Office Memorandum No. 228, dated June 7, 1934. It is intended 
to permit the prohibition, in times of emergency, of the sale of 
products below minimum prices to be determined. 

This amendment does not in any way affect the labor provisions 
of the Code. 

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 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 ])romoting the organization of industry for the purpose 
of cooperative 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 amended complies in all respects with the perti- 
nent provision of said Title of said Act, including without limitation 
sub-section (a) of Section 3, sub-section (a) of Section 7, and sub- 
section (b) of Section 10 thereof. 

(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 oper- 
ate to discriminate against them. 

(140) 



141 

(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 consmner, and to 
the industry, and for these reasons, therefore, I have approved this 
amendment. 

Kespectfully, 

Hugh S. Johnson, 

Adtninistrator. 

July 27. 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
BEDDING :MANUFACTURING INDUSTRY 

Article VIII of the Code of Fair Competition for the Bedding 
Manufacturing^ Industry, shall be and herebj^ is amended b}' the 
addition thereto of the following paragraphs : 

" (a) If the Administrator, after investigation shall at any time 
find both (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 ot 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 in- 
vestigate costs and to recommend to the Administrator a determina- 
tion of the stated minimum price of the product affected bj' the 
emergency and thereupon the Administrator may proceed to de- 
termine 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 In- 
dustrial Recovery Act, he shall publish such price. Thereafter, dur- 
ing such stated p.eriod, 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 
reconsideration or the Administrator may cause any determinations 
hereunder to be reviewed or reconsidered and appropriate action 
taken." 

Approved Code No. 219 — Amendment No. 3. 
Ke.i,'istry No. 1007-1-01. 

(142) 



Approved Code No. 37 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BUILDERS SUPPLIES TRADE 

As Approved on July 27, 1934 



ORDER 



Approving Amendment to Code or Fair Competition for the 
Builders Supplies Trade 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to the Code of Fair Competition for the Builders' Supplies 
Trade Industry, and an opportunity to be heard thereon having 
been duly afforded to all interested parties 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 modified to include an approval of said Code in its entirety 
as amended, such approval and such amendment to take effect on 
the date hereof. 

Hugh S. Johnson, 
Adrmnistrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Division AdmAnistrator. 

Washington, D.C, 

July 27, 193Jf. 

(143) 



KEPORT 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 Builders Supplies Trade Industry, in accordance 
with Administrative Order X-;3(), of jNIay 26, 1934, relative to col- 
lection of Expenses of Code Administration. 

This amendment is proposed in substitution for Article VII, Para- 
graj)lis one, two and three of the Builders Supplies Trade Industry 
Code, approved October 3, 1033. An opportunity to be heard has 
been accorded to all interested parties. 

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 obstruc- 
tions to the free flow of interstate and foreign commerce wdiich 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 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 of said Act, including without limita- 
tion sub-sect i(m (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 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. 

Said amendment is accordingly approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
JrLY27, 1934. 

(H4) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE BUILDERS SUPPLIES TRADE 

Strike out paragraphs one, two and three of Article VII of the 
Code of Fair Competition for the Builders Supplies Trade Industry,, 
and substitute therefor 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 whicli 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 notices 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 Trade; 

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

" 2. Each member of the Trade shall 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 Trade complying with the Code and contributing to the 
expenses of its administration as hereinabove provided, unless duly 
exempted from making such contributions, shall be entitled to par- 
ticipate 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 obliga- 
tion substantially in excess of the amount thereof as estimated in its 
approved budget and shall in no event exceed the total amount con- 
tained in the approved budget, except upon approval of the Admin- 
istrator ; and no subsequent budget shall contain any deficiency item 
for expenditures in excess of prior budget estimates except those 
Avhich the Administrator shall have so approved." 

Approved Code No. 37 — Amendment No. 1. 
Registry No. 1013-3-02. 

(145) 



Approved Code No. 40 — Amendment No, 1 
AMENDMENT TO CODE OF FAIR COMPETITION 



FOR THE 



ELECTRIC STORAGE AND WET PRIMARY 
BATTERY INDUSTRY 

As Approved on July 27, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the 
Electric Storage and Wet Primary Battery Industry 

An application having been duly made pursuant to and in full 
compliance with the provision 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 Electric Storage and 
Wet Primary Battery Industry (a copy of said amendment is 
attached hereto and clenominated Exhibit "A"), and as contained 
in a Published Notice of Opportunity to be Heard, Administrative 
Order No. 40-5, dated June 27, 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 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 Industrial Recovery. 

Approval recommended : 
C. E. Adams, 
Division Administrator. 

Washington, D.C, 

July ^7, 1931 

(147) 



REPORT TO THE PRESIDENT 

The President, 

llie 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 
Electric Storage and Wet Primary Batt-ery Industry, submitted by 
the Code Authority for the said Industry, 

The existing provision of Article IX of the Code for said Industry 
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 amendment to Article VI 
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 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for the 
general welfare by promoting the organization of industry for the 
purpose of cooperative action among trade groups, by inducing and 
maintaining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of the industries, by avoiding undue 
restrictions of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing poAver, by reducing and reliev- 
ing unemployment, by improving standards of labor, and by other- 
wise rehabilitating industry. 

(b) The Code as amended complies in all respects with the 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. 

(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 eliminat^^ or oppress small enterprises and will not 
operate to discriminate against them. 

(148) 



149 

(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. 

Hugh S. Johnson, 

Administrator. 
July 27, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE ELECTRIC STORAGE AND WET PRIMARY BAT- 
TERY INDUSTRY 

EXHIBIT "a" — AMENDMENT 

Delete Article IX and amend Article VI by adding a new section 
tliereto, to read as follows: 

3 (a) 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 ma}' 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 
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 proceed- 
ings therefor in its own name. 

(b) 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. 

(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; and no subse- 
quent budget shall contain any deficiency item for expenditures in 
excess of prior budget estimates except those which the Admin- 
istrator shall have so approved. 

Approved Code No. 40 — Ainendmeut No. 1. 
Registry No. 699-1-05. 

(150) 



Approved Code No. 98 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FIRE EXTINGUISHING APPLIANCE MANUFACTUR- 
ING INDUSTRY 

As Approved on July 27, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the Fire 
Extinguishing Appliance 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 Fire Extinguishing 
ApiDliance Manufacturing Industry, and hearings having been duly 
held thereon and the annexed report on said amendment, containing 
findings with respect thereto, having been made and directed to the 
President : 

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, such approval and such amendment to take 
effect 10 days from the date hereof, unless good cause to the con- 
trary is shown to the Administrator before that time and the Admin- 
istrator issues a subsequent order to that effect. 

Hugh S. Johnson, 
AdTTiinistrator for Industrial Recovery. 

Approval recommended: 
C. E. Adams, 

Division AdTTiinistrator. 

Washington, D.C, 

July 27, 1931^. 

(151) 



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 Fire 
ExtintTuishino; Appliance Manufacturing Industry, submitted by the 
Code Authority for the said Industry. 

The existing provision of Article VI Section 2 (h) of the Code 
for said Industry 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 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 inclustry for the purpose of 
cooperative action among trade groups, by inducing and maintaining 
united action of labor and management under adequate governmental 
sanction and supervision, by eliminating unfair competitive prac- 
tices, by promoting the fullest possible utilization of the present 
productive capacity of the industries, by avoiding undue restrictions 
of production (except as may be temporarily required), by increasing 
the consumption of industrial and agricultural products through 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 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 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 
(»perat€ to discriminate against them. 

(152) 



153 

(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. 

Hugh S. Johnson, 

A dministrator. 
July 27, 1934. 



80835—34- 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE FIRE EXTINGUISHING APPLIANCE MANUFAC- 
TURING INDUSTRY 

Amend Article VI by deletino- Section 2 (h) and substituting in 
lieu thereof the followin<r : 

(h) 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 liereunder and to effectuate the policy of the Act, 
the Code Authority is authorized : 

(a) To incur such reasonable obligations as are necessarj^ and 
proper for the foregoing purposes and to meet such obligations 
out of funds Avhich may be raised as hereinafter ])rovided and 
wiiich shall be held in trust for the purposes of the Code. 

(b) To submit to the A(hiiinistrator for his approyal, 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 e^juitable ba^is 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 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 sludl i)a3' 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 tlie expenses of its administration as hereinabove pro- 
vided, shall be entitled to j^arti ipate in the selection of members of 
the Code Authority or to receive tlie 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 obliga- 
tion in excess of the amount thereof as estimated in its approved 
budget, except upon approval of the Administrator; and no sub- 
sequent budget shall contain any deficiency item for expenditures 
in excess of prior budget estimates except those v.hich the Adminis- 
trator shall have so approved. 

Aii)rovecl Code No. 98 — Ameudiimit No. 1. 
lit'gistiy No. 1314-01. 

(l.")4) 



Appro\ed Code No. 266 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

INLAND WATER CARRIER TRADE INTHE 
EASTERN DIVISION OF THE UNITED STATES 
OPERATING VIA THE NEW YORK CANAL 
SYSTEM 

As Approved on July 27, 1934 



OKDER 



ArPROviNG Amexdmext to Code of Fair Competition for the 
IxLAND Water Carrier Trade in the Eastern Division of the 
United States Operating Via the New York Canal System 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industiial 
Recover}^ Act. approved June IG, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Inland Water Carrier 
Trade in the Eastern Divi.sion uf the United States, operating via 
the New York Canal System, and opportunity to be heard having been 
duly afforded all interested parties 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 G543-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 modified 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 an.d the Administrator 
issues a subsequent order to that effect. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
C. E. Adams, 
D ivls'io 1 1 A d7)im is t rat or. 

Washington, D.C, 

July 27, 193 If. 

(155) 



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 
Inland Water Carrier Trade in the Eastern Division of the United 
States operatinj^ via the New York Canal System, submitted by the 
Code Authority for the said Trade. 

The existing- provision of Article X, Section 9 of the Code for 
said Trade, is entirelv inadequate in view of Executive Order 6678 
and Administrative Order X-36, and it is therefore evident that the 
proposed amendment to Article X of said Code, the provisions of 
which follow closely the text of the above mentioned Orders, will 
overcome the existing inadequate provisions. 

FINDINGS m 

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 tlie 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 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 Secticm 7, and 
Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendment on iDehalf of the Trade as a whole. 

(d) The amendment and the Code as amended are not designed to 
and will not permit monopolies or monopolistic practices. 

(150) 



157 

(e) The amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

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

Hugh S. Johnson, 

Administ7'atoi\ 
July 27, 1934. 



A:ViEXDMENr TO CODE OF FAIR COMPETITION FOR 
THE IXLAXD AVATER CARRIER TRADE IN THE ExVST- 
ERN DIVISION OF THE UNITED STATES OPERATING 
YIA THE NEW YORK CANAL SYSTEM 

Amend Article X by deleting the present Section 9 and substitut- 
in«^ in lieu thereof a new Section 9 reading as follows : 

Section 9 (1). It being found necessary, in order to support the 
administration of this Code and to maintain the standards of fair 
conqjetition established b}' 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 ajid 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 sucii budget shall be contributed by members of the 
Trade ; 

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

(2). Each member of the Trade shall 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 members 
of the Trade complying with 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 eiublem or insignia of the National Recovery 
Administration. 

(a) The expenses of administering the Code shall be prorated 
equitably among all members of the Trade on the basis of tonnage 
carried and at the rate of assessment provided in the budget for the 
Trade approved by the Administrator. A report of the tonnage 
carried the preceding month shall be filed with the Code Authority 
by each member of the Trade within ten ( 10) days after the close of 
each calendar month. 

(b) Changes in the rate of assessment provided in the budget 
for the Trade may be made upon application by the Code Authority 
to the Administrator and become effective upon his approval. 

(158) 



159 

(3). The Code Authority shall neither incur nor pay any obliga- 
tion substantially in excess of the amount thereof as estimated in its 
approved budget, and shall in no event, exceed the total amount 
contained in the approved budget, except upon approval of the Ad- 
ministrator; 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. 266 — Amendiiieut No. 1. 
Registry No. 1417-14. 



Approved Code No. 113 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LIMESTONE INDUSTRY 

As Approved on July 27, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Limestone 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 Limestone Industry, 
and a Notice of Opportunity to be Heard having been duly given 
thereon 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 
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: 
Barton W. Murray, 

Division Adtninistrator, 

Washington, D.C, 

July 27, 19S1^. 

(161) 



REPORT 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 Limestone Industry, in accordance with Administra- 
tive Order X-36, of May 2G, 1934, relative to collection of Expenses 
of Code Administration. 

This amendment is proposed in substitution for Article VI, Sec- 
tion 1 (e), sub-section 6, of the Limestone Code, approved November 
14, 1933. An opportunity to be heard has been accorded to all 
interested parties. 

The Assistant Deputy Administrator in his final report to me on 
jjaid 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 
"uell 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 wdll 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 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 agi'icultural products 
through increasing purchasing powder, 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 perti- 
nent provisions of said Title of said Act, including without limitation 
subsection (a) of Section 3, sub-section (a) of Section 7 and sub- 
section (b) of Section 10 thereof. 

(c) The Code empow-ers 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 wnll 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. Johnson, 

Administrator. 
July 27, 1934. 

(162) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE LIMESTONE INDUSTRY 

Delete present Sub-section C, of Section 1, (e) of Article VI and 
substitiue the following as subsection 6 : 

a. 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 (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 biidget 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. 

b. 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 contributing 
to the expenses of its administration as hereinabove provided, unless 
duly exempted from making such contributions, 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 Adminis- 
tration. 

c. The Code Authority shall neither incur nor pay any obliga- 
tion substantially in excess of the amount thereof as estimated in 
its approved budget, excej^t upon approval of the Administrator; 
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. 113- Amendment No. 2. 
Registry No. 1026-09. 



Approved Code No. 9 — Amendment No. 16 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 

As Approved on July 27, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Lumber and Timber Products Industry 

An application having been duly made pursuant to and and in 
full compliance with provisions of Title I of the National Industrial 
Recovery Act, approved June 16. 1933, for approval of an amend- 
ir;er!t to the Co;le of Fair Crmpetition for the Lumber and Timber 
Products Industries, and an opportunity to file objections thereto 
having been given, and the annexed report on said amendment, con- 
taining findings with respect thereto, having been made and directed 
to the President: 

NOW, THEREFORE. On behalf of the President of the United 
States, I. Hugh S. Johnson. Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order Number 6543-A, dated De- 
cember 30. 1933. and otherAvise, do hereby incorporate by reference, 
said ajmexed 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, 
Adm'nthtrator for Induatr'ml Recovery. 

Approval recommended : 
Barton W. Murray, 

Division Administrator. 

Washington. D.C, 

July 27, WSJi. 

(165) 



REPORT TO THE PRESIDENT 

The pRK.SIDKXT, 

The White House. 

Sir; Under the Code of Fair Competition for the Lumber and 
Timber Products Iridustries, as approved b}^ you on Aueriist 19, 1933, 
the Lumber Code Authority has submitted its Amendment No. 70 
whieli is included and attached. 

Notice of Opportunity to File Objections to the Amendment vras 
pul)lished on May 16, 1934, allowing a fifteen (15) day period in 
which interested parties might file their objections. I am informed 
by the Deputy Administrator that no objections were filed with him 
either during or subsequent to the period above mentioned. 

The Amendment is in accordance with model code provisions for 
mandatory contributions and authorizes the Lumber Code Authority 
to conduct investigations and make reports to the Administrator, to 
incur reasonable obligations for administration of the Code and 
maintenance of the standards of fair competition established by the 
Code and to collect fees on an equitable basis of contribution for 
the support of the Lumber Code Authority. 

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 ol)struc- 
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 tlie purpose 
of cooperative action of labor and management under aiU^quate gov- 
ernmental sancti<m and supervision, b}' eliminating unfair c(jmpeti- 
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 un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended com])lies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion subsection (a) of Section 3, subsection (a) of Section 7 and sub- 
section (b) of Section 10 thereof. 

(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. 

(166) 



167 

(e) The Amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them, 

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

For these reasons, therefore, I have approved this Amendment to 
the Code. 

Kespectfully, 

Hugh S. Johnson, 

A dirdnis trator. 
July 27, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
LUMBER AND TIAIBER PRODUCTS INDUSTRY 

Amendment No. TO: Amend Article IV by .substituting a period 
for the comma after the words '• as the Authority may require ", and 
by striking therefrom the foHowing: 

"and each person subject to the jurisdiction of this Code and ac- 
cepting the benefits of the activities of the Authority hereunder 
shall pay to the Authority his proportionate share of the amounts 
necessary to pa}^ the cost of assembly, analysis and publication of 
such reports and data, and of the maintenance of the said Authority 
and its activities. Said proportionate share shall be based upon 
value of sales or footage of production, as the Authority may pre- 
scribe for each Division or Subdivision. The Authority may eon- 
duct such investigations as are necessary to discharge its duties here- 
under." 

De.^ignate the first paragra]>h of Article IV as " Section (a)" and 
add to Section (a) the following sentence: 

" To the extent permitted by the National Industrial Recovery Act 
and subject to such rules and regulations as may be jjrescribed by the 
Administrator, the Authority may conduct such investigations as 
ma}' be necessary to discharge its duties under the Code." 

Add the following as Sections (b) and (c) : 

(b) It being found necessary, in order to support the adminis- 
tration of this Code and to maintain the standards of fair competi- 
tion establislied by this Code and to effectuate the policy of the Act, 
the Crxle 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 fore- 
going purposes, and 

(b) an equitable basis upon which the funds necessary to 
'support such budget shall be contributed by members of the 

Industry, said basis to include the provision that Code fees may 
be assessed upon the value of sales, the footage of shipments, 
the footage of production, the footage of lumber and timber 
products consumed, or upon any other equitable manner which 
may be submitted by the Code Authority and approved by the 
Administrator; 

(3) After budget and basis of contribution have been approved by 
the Administrator, to determine and secure equitable contribution 
as above set forth by all such membei-s of the Industry, and to that 
end, if necessar}', to institute legal proceedings therefor in its own 
name. 



169 

(c) 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, unless 
duly exempted from making such contribution, shall be entitled to 
participate in the selection of members of the Code Authority or 
of any Division or Subdivision Agency, 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. 

(d) 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. 9^ — Aineiidineut No. 16. 
Registry No. 313—1—06. 



SOS.-HS ■ ;^4 



Approved Code No. 9 — Amendment No. 17 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 

As Approved on July 27, 1934 



ORDER 



Approving Amendment of 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 provision 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 Lumber and Timber 
Products Industries, 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 : 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

July 27, 1931^. 

(171) 



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 has submitted its Amendment, which is 
inchided and attached. 

This is a report of the Hearing on the foregoing Amendment con- 
ducted January 22. 1934, in the Ball Room of the Raleigh Hotel, 
"Washington. D.C., in accordance with the provisions of the National 
Industrial Recovery Act. 

This Amendment changes the wage rate in tlie Black Hills Forest 
region of South Dakota and Wyoming to equalize the wages in this 
region with the wage rates which prevail in the territory from which 
the employees are drawn. The present Code wage rate for this 
region is the same as in the dense fir forests of Oregon and Washing- 
ton, while the timber operations are similar to those in Northern 
Minnesota and Wisconsin and the laborers are drawn from the latter 
two States. 

Unless the wage rates in these two territories are equalized it will 
be impossible for the operators in the Black Hills Forest region to 
continue to give satisfactory employnient to labor because of the 
excessive cost of the lumber operation. 

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 
Avell 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 
cooi)erative action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue re- 
striction of production (except as may be temporarily required), by 
increasing the consumption of industrial and agricultural 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. 

(372) 



173 

(c) The Code empowers the ('ode Authorit}^ 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 wall not permit monopolies or monopolistic practices. 

(e) The Amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, therefore, I have approved this Amendment to 
the Code. 

Kespectfully, 

Hugh S. Johnson, 

Ad/ministrator. 
July 27. 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
LUMBER AND TIMBER PRODUCTS INDUSTRY 

Amendment No. 30: In Article VII (d) at the end of the paren- 
thetical phrase following the heading •• Western Pine " insert, " and 
the Blatk Hills Forest region of South Dakota and Wyoming"; 
and at the end of the item: 

Arizi na. New Mexico, and Colorado (South of 38° North Latitude) 24 

add tlie following nev: item : 

Black Hills Forest region of South Dakota and Wyoming: 

Mills and factories SSVa 

Logging 281^ 

Approved Code No. 9 — Amendment No. 17. 
Registry No. 313-1-06. 

(174) 



Approved Code No. 9 — Amendment No. 18 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 

As Approved on July 27, 1934 



ORDEE 



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 amend- 
ments 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 pertinent 
provisions and will promote the policy and purposes of said Title of 
said Act, and do hereb^^ 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, 
AdmAnistrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division Admdnist7^ator. 

Washington, D.C, 

July 27, 19S4. 

(175) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: On August 19, 1933, you approved a Code of Fair Competi- 
tion for the Lumber and Timber Products Industries. 

This is a report on a Hearing on Amendments Xos. 34 and 37 to 
that Code conducted in Washington, D.C.. beginning on January 22, 
1934. in accordance with the National Industrial Recovery Act. 

The Amendments contemjdate the establishment of a Wooden Pail 
and Tub Subdivision to the AVooden Package Division of the Lumber 
and Timber Products Code and were presented by representatives 
of the industry over which the contemplated Subdivision will have 
jurisdiction, said to represent 94.3 per cent of the value of such prod- 
ucts manufactured and distributed in the United States and repre- 
senting with approval 93 per cent of the invested capital. 

In 1928 approximately one thousand and seven hundred (1,700) 
employees were engaged in the Wooden Pail and Tub Industr}^ and 
the sales for that year are estimated at $3,427,720.00. The estimated 
demand for 1934 for the products of the industry is below the sales 
for 1933 which were estimated at $1,634,926.01. 

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

I find that : 

(a) Tlie Amendments to said Code and the Code as amended are 
well designed to promote tlie 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 re- 
strictions of production (except as may be temi)orariiy required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and relieving 
unemployment, by impioving 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 limi- 
tation 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. 

(176) 



177 

(d) The Amendments and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The Amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, therefore, I have approved these Amendments 
to the Code. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 
JiHLT 27, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE LUMBER AND TIMBER PRODUCTS INDUSTRY 

Amendment No. 34: In Article VII (d) at the end of the para- 
graph headed '* AVooden Package " insert the following : 

H. Woodeu Pail and Tub Subdivision: 

Southern Group: Maryland, West Virginia, Virginia, North Caro- 
lina, South Carolina, Georgia, Florida, Alabama, Tennessee. Ken- 
tucky, Mississippi, Louisiana, Arkansas, Oklahoma, New Mexico, 
Arizona, Texas, and Pemiscot, Dunklin, and New Madrid Coun- 
ties in Missouri 2St 

Western Group: Montana, Idaho, Washington, Oregon, California, 
Nevada, and Utah 4fV 

Central and Eastern Group: All other territory '^Ot 

Aniendnient No. 37: In Schedule "A"', following the section headed 
" 3()a. American Veneer Package Subdivision "' insert the following 
new section : 

" 80B. WOODEN PAIL AND TUB SI BDI%aSION 

" Subdivision (Art. II c) : The Wooden Pail and Tub Subdivision 
shall consist of all manufacturers of the products hereinafter 
enumerated. 

" Products (Art. II a). — Wooden pails, tubs, kits, buckets, without 
bilge; cannikins; staves, heading and/or hoops therefor; excepting, 
however. l)utter tubs and parts therefor. 

•"Administrative agency (Art. IJI). — (a) The Wooden Pail and 
Tub Subdivision Administrative Agency is designated as the agency 
of the Authority and of the Coordinating Committee of the Wooden 
Package Division for the administration of the Code in this Sub- 
division. Said Administrative Agency is authorized to make rules 
and regulations necessary to administer the Code in this Subdivision, 
and shall designate and authorize such agencies as may be recjuired 
for this purpose. 

''(b) Within twenty (20) days after tlie etfec.ive date iiereof, the 
Wooden Pail and Tub Association shall call a meeting for the pur- 
pose of electing the Administi'ative Agency of this Subdivision. Due 
notice of said meeting shall be sent to every known member of the 
industry in writing or by such other methods as are reasonably cal- 
culated to notify all interested parties of said election. The said 
Administrative Agency shall consist of six (6) members, two of 
whom shall be elected by a majority vote of the members of the in- 
dustry who are not members of the Association, if there be any such, 
each person to have one vote in pei-son. by letter or by proxy. The 
remaining members shall be elected by a majority vote of the mem- 
bers of the industry who are members of said Association, each per- 
son to have one vote in person, by letter or by proxy. The members 
of the Administrative Agency shall serve for one year or until their 
successors are elected." 

Approved Code. No. 9 — Amendment No. 18. 
Registry No. :il3-l-0(5. 

(178) 



Approved Code No. 124 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MOTION PICTURE INDUSTRY 

As Approved on July 27, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
MonoN Picture Industry 

An application having been dul}^ made pursuant to and in full 
•compliance with the provisions of Title I of the National Industrial 
Recover^' Act, approved June 16, 1933, for approval of an amend- 
jnent, to a Code of Fair Competition for the Motion Picture Indus- 
try, 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. Admmistrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order 6543-A, dated December 30, 1933, 
and otherwise, do hereby incorporate by reference, said annexed 
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 modified to include an approval of said Code in its en- 
tirety as amended, such approval and such amendment to take effect 
ten 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, 
Adnninistrator for Industrial Recovery. 

Approval recommended : 
Sol a. Rosenblatt, 

Division Administrator. 

Washington, D.C. 

July 27, 193^. 

(179) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Code Authority of the Motion Picture Industry sub- 
mitted on July 3, 1934, proposed amendments for the Code of Fair 
Competition for the Motion Picture Industry. Those amendments 
as submitted were presented to the Legal Division of the National 
Recovery Administration and received its approval. 

The main body of these amendments being in accord with an 
Executive Order signed Iw you and dated April 14. 1934, a public 
hearing was not deemed necessary, and in lieu of the public hearing 
a notice of opportunity to file objections (Administrative Order No. 
124-24) was printed and distributed in the same manner as a notice 
of hearing. Ten days were given in this notice of opportunity to 
file objecti(ms as a time within which objections to these amendments 
were to be received. 

In their final form, these amendments were approved by the Legal 
Division and the Research and Planning Divisio7i of the National 
Recovery Administration. The reports of the remaining Boards are 
not necessary since these amendments are confined to the collection 
of expenses of Code Administration and a model clause regarding 
the liability of members of the Code Authority. 

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

I find that : 

(a) The amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
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 re- 
striction 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. 

(180) 



181 

(c) The Code empowers the Code Authority to present the afore- 
said amendments on behalf of the industry as a whole. 

(d) The amendments and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, these amendments have been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
July 27, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
MOTION PICTURE INDUSTRY 

Amend Article II as follows: Add to Section 10, sub-section (b) 
the following : 

Upon approval by the Administrator of an itemized budget of 
such expenses and an equitable basis of contribution thereto, each 
such member shall be legally obligated foi-. and shall pay to the 
Code Authority, his or its respective equitable contribution, subject 
to rules and regulation pertaining thereto issued by the Adminis- 
trator. Failure to pay such equitable contribution shall constitute 
a violation of this Code. In addition to all other rights and remedies 
with respect thereto, the Code Authority shall have the right to in- 
stitute legal proceedings for the collection of any such equitable 
contribution. 

Add as Section II the following new paragraph : 

11. Nothing contained in this Code shall constitute the members 
of the Code Authority partners for any purpose. Nor shall anv 
member of the Code Authority be liable in any manner to anyone 
for an}' 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. 

Approved Code No. 124 — Ameudment No. 2. 
Registry No. 1639-03. 

(182) 



Approved Code No. 239 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PORCELAIN BREAKFAST FURNITURE 
ASSEMBLING INDUSTRY 

As Approved on July 27, 1934 



ORDER 



Approving Amendment or Code of Fair Competition for the Por- 
celain Breakfast Furniture Assembling 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 Porcelain Breakfast 
Furniture Assembling 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 belialf 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 
JPresident. 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 vrill promote the policy and purposes of said 
Title of said Act. and do hereby order that said amendment be and 
it is liereby 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, 
Admimstrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division Admmistrator. 

AVashington, D.C. 

July 27. 193Jf. 

(183) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the amendment of the Code of Fair Com- 
petition for the Porcelain Breakfast Furniture Assembling Industry 
as approved by me on January 30, 1934. Application was made 
under date of June 20, 1934, by the Code Authority for the Porce- 
lain Breakfast Furniture Assembling Industry, for amendment of 
the provisions of Article VII, Part A, Section 5, of the Code. Fair 
notice of opportunity to file objections to this amendment was 
given to all interested parties. 

This amendment was drawn up and proposed in accordance with 
Executive Order No. 6678. dated April 14, 1934, and with the Legal 
Division's May 22 suggested Avording for such amendments. It is 
intended to govern the collection of assessments for code adminis- 
tration by the Porcelain Breakfast Furniture Code Authority. 

This amendment does not in any way affect the labor provisions 
of the Code or 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 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, bv promoting the fullest ])ossible 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 reliev- 
ing unemployment, by improving standards of labor, and bv other- 
wise rehabilitating industry. 

(b) The Code as amended complies in all respects with the ])erti- 
nent ])rovisions of said Title of s^iid Act, inchiding 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 Autliority to present the afore- 
said amendment on behalf of the Industry as a whole. 

(184) 



185 

(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 riglit 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. 
July 27, 1934. 



S0835— 34- 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE PORCELAIN BREAKFAST FURNITURE ASSEM- 
BLING INDUSTRY 

Article VII, Part A, Section 5, of the Code of Fair Competition 
for the Porcelain Breakfast Furniture Assembling Industry shall 
be and hereby is amended to read as follows : 

'' Section 5. (1) 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 he 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- 
j^roved 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 pa}^ 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, unless 
duly exempted from making such contributions, shall be entitled to 
l)articipate 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 obliga- 
tion substantially 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 expendi- 
tures in excess of prior budget estimates except those which the 
Administrator shall have so approved." 

Approved Code No. 239 — Amendnicnt No. 1. 
Registry No. 312-04. 

(180) 



Approved Code No. 235 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

TEXTILE PROCESSING INDUSTRY 

As Approved on July 27, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the 
Textile Processing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Textile Processing 
Industry, and an opportunity to file objections thereon having been 
given 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 
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 modified to include an approval of said Code in its entirety 
as amended, such approval and such amendment to take effect 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 : 

R. L. Houston, 

Division Admin istrator. 

Washington. D.C, 

July 27, 193^. 

(1S7) 



REPORT TO THE PRESIDENT 

The President, 

The White Bouse. 

Sir : This is a report on the results of the Xotice of an Opportu- 
nity to File Objections to the amendment to the Code of Fair Compe- 
tition for the Textile Processing Industry, which was issued June 
18, 1934, with the provision that objections against the Proposed 
Amendment could be filed any time prior to July 2, 1934. The 
amendment, which is attached, was presented by the duly qualified 
and authorized representatives of the Industry complying with 
statutory requirements. 

In accordance with customary procedure, all complaints received 
were given careful consideration and all statutory and regulatory 
requirements were complied with. 

PROVISIONS OF THE AMENDMENT 

This amendment authorizes the Code Authority to incur such rea- 
sonable obligations as are necessary and proper for the administra- 
tion of the Code and to submit an itemized budget and an equi- 
table basis upon which the funds necessary to support such budget 
shall be contributed by members of the Industry. It is also pro- 
vided that only members of the Industry complying with the Code 
and contributing to the expenses of its administration, unless duly 
exempted, shall be entitled to participate in the selection of members 
of the Code Authority or to make use of anj^ emblem or insignia 
of the National Recovery Administration. 

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 })olicies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foi'eign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of coo]ierative 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 ])ractices. by promoting the fullest ])ossible utilization of the 
present ])roductive capacity of industries, by avoiding undue restric- 
tion of production (except as may be tenqjorarily required), by 

(1S8) 



189 

increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving 
unemployment, by improving the standards of labor, and by other- 
wise rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendment on behalf of the Industry as a whole. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) Tlie 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, 

A dniin istrator. 
JUI.Y 27, 1934. 



MODIFICATIOX OF CODE OF FAIR COMPETITION FOR 
THE TEXTILE PROCESSING INDUSTRY 

Article III, Section 2 is hereby amended to read as follows: 
2. (a) It being found necessary in order to support the adminis- 
tration of this Code and to maintain the standards of fair competi- 
tion established liereiinder and to eifectuate the policy of the Act, 
the Code Authorit}^ 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 nuiy deem 
necessary (1) an itemized budget of its estimated expenses for 
the foregoing purposes, and (2) an equitable basis upon Avhich 
the funds necessary to support such budget shall be contributed 
by members of the Industr3\ 

(3) After such budget and basis of contribution have been 
ap])roved by the Adininistrator, to determine and obtain ecjui- 
table contribution as above set forth by all members of the 
Industr}', and to that end, if necessary, to institute legal pro- 
ceedings therefor in its own name. 

(b) 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 contrib- 
uting to the expenses of the administration as hereinabove provided, 
unless duly exempted from making such contributions, shall be en- 
titled to paiticipate in the selection of members of the Code Author- 
ity or to receive tlie benefits of any of its voluntary activities or to 
make use of any emblem or insignia of the National Recovery Ad- 
ministration. Failure to contribute to the expenses of the admin- 
istration of this Code, as provided herein, shall constitute a violation 
of the Code. 

(c) The Code Authority shall neither incur nor pay any obligation 
in excess of the amount thereof as estimated in its approved budget, 
excej)t 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. 

Appi-oved Code No. 2.3.5 — Aniendnient No. 2. 
Keyistry No. 299-1-13. 

(190) 



Approved Code No. 51 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

UMBRELLA MANUFACTURING INDUSTRY 

As Approved on July 27, 1934 



ORDER 



Appro\t:ng Ame>'dments to Code of Fair Competitiox for the 
Umbrella ]\Iaxufacturixg Industry 

An application having been dul}^ 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 Umbrella Manufacturing 
Industry, and hearings having been duly held thereon and the an- 
nexed report on said Amendments, containing findings with respect 
thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursiumt to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6o43-A, dated December 30, 
1933, and otherwise, do hereby incorporate, by reference, said annexed 
report and do find that said Amendments and the Code as constituted 
after being amended comply in all respects with the pertinent pro- 
visions and will 2:)romote 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. 

It is further ordered that wherever in said Code or Amendments 
to said Code the words " Planning and Fair Practice Agency " are 
used, the words " Code Authority " shall be substituted therefor. 

Hugh S. Johxsox^. 
Administrator for Industrial Recovery. 

Approval recommended: 
Geo. L. Berrt, 

Division Administrafor. 

Washington, D.C, 

Juhj 27, 1934, 

(191) 



EEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The public hearing on the Amendments to the Code of Fair 
Competition for the UmbreUa Manufacturing Industry of the United 
States, submitted by the Planning and Fair Practice Agency for 
said Industry, located at 347 Fifth Avenue, New York, was con- 
ducted in Washington on June 14, 1934, in accordance with the 
provisions of the National Industrial Recoveiy Act. 

Provisions are incorporated in these Amendments which will tend 
to improve the working conditions of the employees within this 
Industry. There are also submitted herewith Amendments which 
will allow the Administrator additional control over the actions of 
the Code Authority for this Industry. Other Amendments deal 
with fair trade practices, some of Avhich are a re-statement of those 
already in the Code Avhile others are new to the Industry. It is 
felt that the adoption of these additional fair trade practices by 
the Industry will encourage fair competition within that Industry. 

The Amendment submitted by the Industry, which has to do with 
the authority of the Administrator to determine an emergency, is 
of utmost importance and necessity to this Industr}^ It was clearly 
shown at the public hearing on the proposed Amendments that one 
unit in the Industry could meet the entire consumer demand for 
the products of this Industry whereas there are seventy-seven (77) 
members of the Industry engaged in the manufacture of umbrellas. 

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 
%velfare by promoting the organization of industry for the purpose 
of cooperative 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 
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 Imiitation 

(192) 



193 

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) The Amendments and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The Amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

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

Hugh S. Johnson, 

A dminis t rat or. 
July 27, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE UMBRELLA MANUFACTURING INDUSTRY 

Article III — Hours 

Add as additional Section : 

3. No employer shall knowingly permit anj' employee to work 
for any time which, when added to the time spent at work for an- 
other employer or employers in this industry, exceeds the maximum 
permitted herein. 

AimcLE IV — Wages 

Delete present Section 3 and insert in lieu thereof : 
3. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a 
wage below the minimum established by this Code if the employer 
obtains from the State authority designated by the United States 
Department of Labor a certificate authorizing his empIo3aiient at 
such wages for such hours as shall be stated in the certihcate. Each 
employer shall file monthly with the Planning and Fair Practice 
Agency a list of all such persons employed by him, showing the 
wages paid to, and the maximum hours of work for yuch employeeSc 
Add as additional Sections: 

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

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

8. Ever}' employer shall provide for the safety and health of em- 
ployees during the hours and at the places of their employment. 
Standards for safety and health shall be submitted to the Adminis- 
trator Avithin three months after the effective date of this Amend- 
ment. 

Article V — Child Labor 

Delete present article and insert in lieu thereof: 

No person under sixteen (10) years of age shall be employed in 
the Industry. No person under eighteen (18) years of age shall be 
emplo3^ed in the industry at operations or occupations hazardous in 
nature or detrimental to health. The Planning and Fair Practice 
Agency shall submit to the Administrator for his approval within 
sixty (60) days after the effective date of this Amendment a list of 
such occupations. In any State any employer shall be deemed to 
have complied with this provit^ion as to age if he shall have on file a 
certificate or permit, duly signed by the Authority in such State 
empowered to issue employment or age certificates or permits show- 
ing that the employee is of the required age. 

(r.)4) 



195 
Article VII — Administration 

Add as additional Sections : 

6. If the Administrator shall at any time determine that any 
action of the Planning and Fair Practice Agency or any agency 
thereof may be unfair or iinjust 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 Planning and Fair Practice 
Agency 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. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Planning and Fair 
Practice Agency shall (1) impose no inequitable restrictions on 
membership, and ('2) submit to the Administrator true copies of its 
articles of association, by-laws, regulations, and any amendments 
when made thereto, together with such other information as to mem- 
bership, organization, and activities as the Administrator may deem 
necessary to effectuate the purpose of the Act. 

8. In order that the Planning and Fair Practice Agenc}^ shall at 
all times be truly representative of the Industry and in other re- 
spects comply with the provisions of the Act, the Administrator may 
prescribe such hearings as he may deem proper and tliereafter if he 
shall find that the Planning and Fair Practice Agency is not truly 
representative or does not in other respects comply with the provi- 
sions of the Act, maA^ require an appropriate modification of the 
Planning and Fair Practice Agency. 

9. Nothing contained in this Code shall constitute the members of 
the Planning and Fair Practice Agency partners for any purpose. 
Nor shall any member of the Planning and Fair Practice Agency be 
liable in any manner to anyone for any act of any other member, 
officer, agent or employee of the Planning and Fair Practice Agency. 
Nor shall any member of the Planning and Fair Practice Agency, 
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 malfeasance or non-feasance. 

10. (a) If the Administrator, after investigation shall at any time 
find both (1) that an emergency has arisen within the industry ad- 
versely affecting small enterprises or wages or labor conditions, or 
tending toward monopoly or otlier 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 consti- 
tuting such emergency and to effectuate the purposes of the Act, the 
Planning: and Fair Practice Agency may cause an impartial agency 
to investigate costs and to reconnnend to the Administrator a deter- 
mination of tlie stated minimum price of the product affected by the 
emergency and thereu.pon the Administrator may proceed to deter- 
mine such stated minimum price. 

(b) When the Administrator shall have determined such stated 
minimum price for a specified product for a stated period, which 



196 

price shall be reasonably calculated to mitigate the conditions of 
such emergency and to effectuate the purposes of the National In- 
dustrial Recovery Act, he shall publish such price. Thereafter, dur- 
ing such stated period, no member of the industry shall sell such 
specified i^roducts at a net realized price below said stated mininium 
jjrice and any such sale shall be deemed destructive price cutting. 
From time to time, the Planning and Fair Practice Agency may 
recommend review or reconsideration or the Administrator may 
cause any determinations hereunder to be reviewed or reconsidered 
and appropriate action taken. 

Article VIII — Prices and Terms of Payment 

Section 1. Delete period at end of first sentence and add : 
provided, however, that any member of this industry may sell his 
products below his cost in order to meet bona fide competition of com- 
parable products in any specific instance, provided the competitive 
price does not violate provisions of the Code. 

Section 2. Delete period at end of Section and add : 
provided, however, that any member of this Industry may sell his 
products below his cost in order to meet bona fide competition of 
comparable products in au}'^ specific instance. 

Article IX — Unfair Methods of Competition 

Delete present 1 (a) and insert in lieu thereof: 

1. (a) Xo member of the industrj^ shall secretly offer or make any 
payment of allowance or a rebate, refund, commission, credit, un- 
earned discount or excess allowance, whether in the form of money 
or otherwise, nor shall a member of the industry secretly offer or 
extend to any customer any special service or privilege not extended 
to all customers of the same class, for the purpose of influencing a 
sale. 

Add as additional sub-sections : — 

(p) No member of the Industry shall publish advertising (whether 
printed, radio, display, or of any other nature), which is mislead- 
ing or inaccurate in any material particular, nor shall any member 
in any way misrepresent any goods (including but wdthout limita- 
tion its use, trade-mark, grade, quality, quantity, origin, size, sub- 
stance, character, nature, finish, material content or preparation) or 
credit terms, values, policies, services, or the nature or form of the 
business conducted. 

((}) 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. 

(r) No member of the Industry shall publish or circulate un- 
justified or unwarranted threats of legal proceedings which tend to 
or have the effect of harassing competitors or intimidating their 
ciLstomers. 

(s) 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 jjoods. 



197 
Article X — General 

Delete present 8 and insert in lieu thereof: 

8. The Planning and Fair Practice Agency shall have the poAver 
to obtain from members of the Industry such information and re- 
ports as are required for the administration of the Code. In addi- 
tion to information required to be submitted to the Planning and 
Fair Practice Agency members of the Industry subject to this Code 
shall furnish such statistical information as the Administrator may 
deem necessary for the purposes recited in Section 3 (a) of the Act 
to such Federal and State agencies as he may designate; provided 
that nothing in this Code shall relieve any member of the Industry 
of any existing obligations to furnish reports to any Government 
agency. No 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. 

Add as additional Section : 

10, All employers shall post and keep posted copies of this Code 
and all amendments thereto 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. 

Approved Code No. 51 — Amendment No. 2. 
Registry No. 1661-1-01. 



Approved Code No. 436 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FUR MANUFACTURING INDUSTRY 

As Approved on July 30, 1934 



ORDER 



Appro\t:xg Amendment to Code of Fair Competition for the Fur 
Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the Xational Industrial 
Recovery Act, approved June 16, 1933, for approval of an Amend- 
ment to the Code of Fair Competition for the Fur Manufacturing 
Industry, and hearings having been 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, 
Adnihiistrator for Industrial Recovery. 

Approval recommended. 
Sol, a. Rosenblatt, 

Division A dministrator. 

Washington, D.C, 

July 30, 193^. 

(199) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Executive Order approviiifr the Code of Fair Compe- 
tition for the Fur Manufacturiufr Industry stayed the application 
of the provisions of Section 13 of Article VIII of the said Code 
pendin<r further study of the issues involved and recommendations 
of the Code Authority. Subsequent to the approval of said Code, 
the Code Authority has conducted investi<iations on the subject and 
has submitted to me for approval a proposed amendment of said 
Section 13 of Article VIII. Notice of Opportunity^ to be Heard 
was duly issued and all objections filed were given due consideration. 
The Deputy Administrator in his final report to me on said amend- 
ment to said Code havino; found as herein set forth and on the basis 
of all the proceedings in this matter. 

I find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and maintain- 
ing united action of labor and management under adequate govern- 
mental sanction and supervision, by eliminating unfair competitive 
practices, by promoting the fullest possible utilization of the present 
productive capacity of the industries, by avoiding undue restriction 
of production, (except as may be temporarily required), by increas- 
ing the consumption of industrial and agricultural products through 
increasing purchasing power, by reducing and relieving unemplo}^- 
ment. by improving standards of labor, and b}'' otherwise rehabili- 
tating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act. including without limitation 
subsection (a) of Section 3. subsection (a) of Section 7, and sub- 
section (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 j^ermit m()no])olies 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 otlier steps of the economic process have not 
been deprived of the right to be heard prior to the approval of said 
amendment. 

For these reasons, therefore, I have approved the amendments. 
Respectfully, 

Hugh S. Johnson, 

Achninistrator. 
July 30, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE FUR MANUFACTURING INDUSTRY 

The Code of Fair Competition for the Fur Manufacturing Indus- 
try shall be amended by omittin<r Section 13 of Article VIII and 
substituting therefor the following: 

"' The maximum terms of sale for fur coats and fur scarfs at whole- 
sale shall be as follows: Eight (8) per cent ten (10) days, sixty (60) 
days extra; or net four (4) months from date of shipment. No 
credit terms shall be granted for a period of longer than four (4) 
months from the date of shipment. All sales made shall be plus 
the manufacturer's Federal Excise Tax on the sale price of each 
article sold. The manufacturer's Federal Excise Tax on the sale 
price of each article sold may be billed separately and shall be 
payable not later than the twenty-fifth day following the date of 
shipment. All credit for a period in excess of ten (10) days E.O.M. 
(end of month) or ten (10) days, sixty (60) extra, as earlier pro- 
vided, shall be covered by the purchaser giving his trade acceptance 
for the purchase price thereof . Merchandise shipped after the 
twenty-ninth day of any month may be dated as of the first day of 
the following month. Anticipation shall not be allowed at a rate 
in excess of six per cent per annum. 

Approved Code No. 436 — Amendment No. 1. 
Registry No. 912-03. 

(201) 



80835—34- 



Approved Code No. 108 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MOTOR FIRE APPARATUS MANUFACTURING 

INDUSTRY 

As Approved on July 30, 1934 



ORDER 



Approvixg Amendment to Code of Fair Competition for the 
Motor Fire xA.pparatus 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 Slotor Fire Apparatus 
Manufacturing Industry, and hearings having been duly held 
thereon and the annexed report on said amendment, containing 
findings with respect thereto, having been made and directed to the 
President : 

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 incorj^orate, by reference, said an- 
nexed report and do find that said amendment and the Code as 
constituted after being amended comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said amendment be, 
and it is hereby approved, and that the previous approval of said 
Code is hereby modified to include an approval of said Code in its 
entirety as amended, such approval and such amendment to take 
effect 10 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 : 
C. E. Adams, 

Division Administrator. 

Washington, D.C, 

July 30, 19S4. 

(203) 



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 
Motor Fire Apjoaratus Manufacturing Industry, submitted by the 
Code Authority for the said Industry. 

The existing provision of Article VI, Section 4, of the Code for 
said Industry 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 of said Code, the provisions of which follow 
closely the text of the above-mentioned Orders, wdll 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 i 
well designated 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, b}^ inducing and maintaining 
united action of labor and management under adequate governmen- 
tal sanction and supervision, by eliminating unfair competitive prac- 
tices, by promoting the fullest possible utilization of the present 
productive capacity of the industries, by avoiding undue restiictions 
of production (except as may be temporarily required), by increas- 
ing 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 r">t permit monopolies or monopolistic practices. 

(204) 



205 

(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. 

Hugh S. Johnson, 

Administrator. 
July 30, 1934. 



a:\ii:xdmext to code of fair competition for 
the ^lotor fire apparatus manufacturing 
industry 

Amend Article VI by deleting Section 4 and snbstituting in lieu 
thereof the following : 

4. (a) It being found necessar}^ in order to support the admin- 
istration of this Code and to maintain the standards of fair compe- 
tition established hereunder and to eiFectuate 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 opportunitv 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 
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 pay his or its equitable 
contribution to the expenses of tlie 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 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. 

(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; 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. 

Approved Code No. 108 — Amendiiient Xo. ] 
Registry 1421-02. 

(20(5) 



Approved Code No. 79 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 



FOR THE 



NOVELTY CURTAINS, DRAPERIES, BEDSPREADS 
AND NOVELTY PILLOWS INDUSTRY 

As Approved on July 30, 1934 



ORDER 



Apfrovixg ^Modification of Code of Fair Competition for the 
Xo^•ELTT Curtains, Draperies, Bedspreads and Xovelty Pillows 
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 of a Code of Fair Competition for the Novelty Curtains, Dra- 
peries, Bedspreads and Novelty Pillows 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 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 jDrovisions 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, 
Achnhi'istrator for Industrial Recovery. 

Approval recommended : 
RoRERT L. Houston. 

Dlvis ion A dwAnistrator. 

Washington, D.C. 

July 30, lOSIf. 

(207) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the Hearing on the Amendments to the 
Code of Fair Competition for the Novelty Curtains, Draperies, Bed- 
spreads and Novelty Pillows Industry, held in Room 2062, Depart- 
ment of Commerce Building, on April 13, 1934. The Amendments 
which are attached were 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 Amendments include an addition to the definition of the 
Industry which brings under the provisions of the Code, manufac- 
turers of kapok pillow fills, chair cushions, and bar harbors, the 
clauses contained in the Executive Order of April 14 making the 
payment of costs of Code Administration mandatory upon all mem- 
bers of the Industry, a new clause prohibiting rebates to take the 
place of the one in the Code at the present time, and an amend- 
ment to the clause in the Code prohibiting the selling below cost 
when a standard system of cost accounting is approved by the 
Administrator. 

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 the 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 coojierative 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 re- 
striction 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 perti- 
nent provisions of said Title of said Act, including without limita- 

(208) 



209 

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) The amendments and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For the above reasons these amendments have been approved 
by me. 

Hugh S. Johnson, 

AdministratoT. 
July 30, 1934. 



AMEXDMEXT TO CODE OF FAIR COMPETITIOX FOR THE 
NOVELTY CI'RTAIXS. DRAPERIES, BEDSPREADS AND 
NOVELTY PILLOWS IXDUSTRY 

Article II, Section 1 shall be amended to read as follows : " The 
term " Industry " as used herein means and includes the using or 
hiring of equipment, or the engaging or hiring of anyone owning 
or hiring equipment, to perform the operation of making piece goods 
into novelty curtains, draperies, bedspreads (made by cutting apart 
and/or sewing together out of the same materials, or out of the 
same materials in combination with other materials employing plain 
or fancy stitching, embroideries, laces, or appliques in conjunction 
therewith, but excluding bedspreads made out of one piece of ma- 
terial cut apart for size only), novelty pillows, chair cushions and 
bar harbor cushions, together with kapok fills used therein, not sold 
as part of a furniture unit and not included within the definition of 
the Code of Fair Competition for the Bedding Industry, and kapok 
pillow fills for novelty pillows." 

There shall be added to Article VI : 

" 7. 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 
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. 

" 8. 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, unless duly exempted from making such contributions, shall 
be entitled to participate in the selection of members of the Code 

(210) 



211 

Authority or to receive the benefits of any of its vohmtary activities 
or to make use of any emblem or insignia of the National Reco\ery 
Administration. Failure to contribute to the expenses of the ad- 
ministration of this Code, as j3rovided herein, shall constitute a 
violation of the Code. 

"• 9. 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." 

Section 5 of Article VII shall be amended to read : 

" 5. Rebates. The payment or allowance of rebates, refunds, or 
unearned discounts whether in the form of money or otherwise or 
the extension to certain purchasers of special services or privileges 
not extended to all purchasers on like terms and conditions." 

Section 11 of Article VII shall be amended by omitting the last 
two sentences and inserting: "Cost as used herein shall be defined 
by the Code Authority subject to the approval of the xVdministrator. 
The Code Authority may, subject to the approval of the Adminis- 
trator, establish a simple system for use by members of the Industry 
to collect such figures as are necessary to determine cost." 

Approved Code No. 79 — Ainendnient No. 1. 
Registry 22&-1-06. 



Approved Code No. 138 — Amendment No, 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

ANTI-FRICTION BEARING INDUSTRY 

As Approved on July 31, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Anti-Friction Bearing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Indus- 
trial Recovery Act, approved June 16, 1933, for the approval of an 
amendment to a Code of Fair Competition for the Anti-Friction 
Bearing 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 
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 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 etfect 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 eifect. 

Hugh S. Johnson. 
Adminhtmfo7' for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division Administrator. 

Washington. D.C, 

July 31, 193!^. 

(213) 



REPORT TO THE PRESIDENT 

The President. 

The White House. 

Sir : This is a report on tlie Amendments of the Code of Fair Com- 
petition for the Anti-Friction Bearing Industry, as revised after a 
Public Hearing conducted in Washington, D.C., on April 5, 1934, 
in accordance with Article VIII, Section (g) of said Code as ap- 
proved on Xovember 27, 1933. Due opportunity to be heard was 
afforded all interested parties. 

The Amendments provide for definite terms of sale which will 
tend to prevent destructive price cutting. 

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 ail the proceedings in this matter: 

I find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote tlie policies and purposes of Title I of the 
Xalional Indu^^trial 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 w^ill provide for the general 
welfare by promoting the organization of industiy 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 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 
rehabilitating 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. 

(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 a'gainst them. 

(e) Those engaged in other steps of the economic process have 
not b?en deprived of the right to be heard prior to approval of said 
amendment. 

For these reasons, these amendments have been approved l)y me, 
subje'-t however, to a ten day waiting period as provided in the 
Order of Approval. 
Respectfully, 

Hugh S. Johnson, 
Jui-Y 31, 1934. Achninistrator. 



AMENDMENT TO CODE OF FAIK COMPETITION FOR THE 
ANTI-FEICTION BEARING INDUSTRY 

Pursuant to Article VIII of the Code of Fair Competition for the 
Anti-Friction Bearing Industry, duly approved by the President, on 
November 27. 1933. and further to effectuate the policies of Title I 
of the National Industrial Recovery Act, the following amendments 
are established as a part of said Code of Fair Competition and shall 
be binding upon every member of the Anti-Friction Bearing 
Industry. 

AMENDMENTS 

Amend Article VII by relettering present Paragraph (i) so that 
it becomes Paragraph (j). 

Amend Article VII by inserting a new Paragraph (i) therein as 
follows : 

"(i) Failure to adhere to the following terms of sale: For all 
sales, terms shall be not to exceed net cash 30 days or 1% discount 
for cash payment as follows : On bills dated 1st to the 15th inclusive 
if paid on or before the 25th of the- month; on bills dated the 16th to 
and including the last day of the month, if paid on or before the 
10th of the following month; excepting that on sales made to or 
through distributors or jobbers or in competition with distributors, 
jobbers or other agencies, not subject to this Code, the terms may 
be not to exceed 2% 10th proximo." 

Approved Code No. 138 — Amendinent No. 1. 
Registry No. 1318-1-02. 

(21o) 



Approved Code No. 219 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOB THE 

BEDDING MANUFACTUKING INDUSTRY 

As Approved on July 31, 1934 



ORDER 



Approving Amendment of Code of 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 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 
constituted after being amended comply in all respects with the per- 
tinent provisions and will promote the policy and purposes of said 
Title I 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: 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

July 31, 1934. 

80835 — 34 9 (217) 



REPOKT TO THE PRESIDENT 

The President, 

^ The White House. ■ ..;/._::.:;. 

Sir : This is a report on amendments to the Code of Fair Competi- 
tion for the Bedding Maniifacturino: Industry as approved by me on 
January 23, 1934. Application was made under date of April 7, 
1934 by the Code Authority for the Bedding Manufacturing Indus- 
try for amendment of certain of the provisions of Articles II and 
VII of the said Code. All interested parties were given opportunity 
to present their views at a Public Hearing held on these proposed 
fourteen amendments on May 4, 1934. 

Four of these fourteen amendments have been approved by me. 
They are intended to clarify the language of that section of the Code 
which prohibits the use of second-hand or previously used material 
in the manufacture of bedding and regulates renovate or repair 
work, to clarify the Code's definition of second-hand and previously 
used material, to implement existing regulations pertaining to the 
tagging of bedding, and to require compliance Avith all provisions of 
the Code, notwithstanding requirements of State statutes. 

The Assistant 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 i)roceedings 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 wdiich tend 
to diminish the amount thereof, and w^ill provide for the general wel- 
fare by promoting the organization of industry for the purpose of 
cooperative action of labor and management under adequate gov- 
ernmental sanction and suijervision, 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 un- 
employment, b}' 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 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) The amendments and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(218) 



219 

(e) The amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

Therefore, I have approved said four amendments. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
July 31, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE BEDDING MANUFACTURING INDUSTRY 

Amendment No. 3 

Article VII, Part I, Section 1, the first paragraph, of the Bedding 
Code shall be and hereby is amended, by revising the said paragraph 
to read as follows : 

1. Second-hand material: No member of the industry shall use 
second-hand or previously used material in the manufacture of bed- 
ding. No member of the industry shall sell any remade, renovated 
or repaired second-hand bedding. Remake, renovate or repair work 
on bedding is permitted only when a member of the industry does 
such work for the owner and user of the bedding and re-delivers it 
direct to such owner-user, but if in such work added material is 
needed, such added material shall not contain any previously used 
material. 

Amendment No. 4 

Article VII, Part I, Section 1, second paragraph, of the Bedding 
Code shall be and hereby is amended, by deleting at the end thereof 
the words " new cotton " and inserting in lieu thereof the words, 
" fibres which are not ' second-hand ' or ' previously used,' " the 
paragraph to read as follows : 

The terms " second-hand " or " previously used " material as used 
herein mean (a) any material which has been used in the manufac- 
ture of another article or used for any other purpose; (b) any 
material made into thread, yarn, or fabric, and subsequently torn, 
shredded, picked apart, or otherwise disintegrated. (They do not 
include metals re-rolled under " white heat " or by-products obtained 
from the machining of fibres which are not " second-hand " or " pre- 
viously used.") 

Amendment No. 5 

Article VII, Part I, Section 3, of the Bedding Code shall be and 
hereby is amended, by revising said Section 3 to read as follows : 

3. Tagging: No member of the industry shall make or sell a mat- 
tress, pillow, box spring, glider, or studio couch to which is not se- 
curely sewn by at least one edge a cloth or cloth-backed tag at least 
2x3 inches in size; and upon the face of said tag shall be legibly 
stamped or printed in English (a) the materials used to fill such 
bedding; (b) the name and address of the maker or vendor of the 
bedding. 

(220) 



221 

When bedding is remade, renovated or repaired as authorized in 
Section 1, the above tag shall in addition be legibly stamped or 
printed on the face thereof with the word " Remade " or " Ren- 
ovated " in letters at least one-eighth inch high. In the case of 
metal beds, springs, cots or cribs, the tag shall be securely attached 
thereto. 

Nothing likely to mislead shall appear on said tag and it shall 
contain all statements required hereunder, and shall be sewed to the 
outside covering of every article of such bedding before the filling is 
inserted. 

The name " felt " shall not be used unless the material described 
has been carded in layers by a garnett or carding machine. 

The words " Second Hand " in bold faced letters not less than 
tliree-quarters of an inch high and wide shall be legibly and indelibly 
stenciled on top and bottom of every second hand pillow, mattress, 
pad, box spring, studio couch or glider, and on top of the head and 
foot end angle rails of every second-hand metal bed, spring, cot or 
crib, if such bedding has been used but not remade, renovated or 
repaired. 

Amendment No. 8 

Article VII, Part I, Section 4, of the Bedding Code shall be and 
hereby is amended, by deleting the second paragraph of subsection 
(g) and inserting in proper order a new paragraph (i) as follows: 

(i) This Code shall not be construed to relieve any member of the 
Industry from the requirements of State statutes, but notwithstand- 
ing the requirements of State statutes, each member of the Industry 
must comply with the provisions of this Code. 

Approved Code No. 219' — Amendment No. 4. 
Registry No. 1607-1-01. 



Approved Code No. 139 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MACHINE TOOL AND EQUIPMENT DISTRIBUTING 

TRADE 

As Approved on July 31, 1934 



ORDER 



Approving Modification of Code of Fair Competition for the 
Machine Tool and Equipment Distributing Trade 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a modifica- 
tion to a Code of Fair Competition for the Machine Tool and Equip- 
ment Distributing Trade, and Notice of Opportunity to Be Heard 
having been given and the annexed report on said modification, con- 
taining findings with respect thereto, having been made and directed 
lo 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 annexed 
report and do find that said modification and the Code as constituted 
after being modified 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 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, such approval and such modification to take effect ten 
(10) days from the elate 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, 
Admimstrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

July 31, 193 ^. 

(223) 



REPOKT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on the Modification of the Code of Fair Com- 
petition for the Machine Tool and Equipment Distributing Trade to 
inchide Executive Order 6G78 of April 14, 1934 relating to collection 
of expenses of code administration. This Modification was proposed 
in accordance with Article VIII of the Code, approved November 27, 
1933 and Notice of Opportunity to Be Heard was given from June 
9 to June 23, 1934. 

FINDINGS 

The Deputy Administrator in his final report to me on said Mod- 
ification 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 wel- 
fare 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 in- 
creasing 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 
sub-section (a) of Section 3, sub-section (a) of Section 7 and sub- 
section (b) of Section 10 thereof. 

(c) The modification and the Code as modified are not designed to 
and will not permit monopolies or monopolistic practices. 

(d) The modification and the Code as modified are not designed to 
and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, these Modifications have been approved by me, 
subject however to a ten day stay in the order of approval. 
Respectfully, 

Hugh S. Johnson, 
July 31, 1934. Adm,inistraior, 

(224) 



MODIFICATION OF CODE OF FAIR COMPETITION, 
MACHINE TOOL AND EQUIPMENT DISTRIBUTING 
TRADE 

Purpose 

Pursuant to Article VII of the Code of Fair Competition for the 
Machine Tool and Equipment Distributing Trade, duly approved by 
the Administrator on November 27, 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 Ma- 
chine Tool and Equipment Distributing Trade, 

MODIFICATIGN 

Modify Article V by deleting Section 5, and substituting in lieu 
thereof the following : 

Section 6. (1) 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 niay deem necessary 
(1) an itemized budget of its estimated expenses tor 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 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. 

(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, unless duly exempted from making such contributions, 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. 

(225) 



226 



(3) The Code Aiithority shall neither incur nor pay any obliga- 
tion substantially in excess of the amount thereof as estimated in 
its approved budget ; and shall in no event exceed the total amount 
contained in the approved budget except upon approAal of the Ad- 
ministrator; and no subsequent budget shall contain any deficiency 
item for expenditures in excess of prior budget estimates except 
tliose which the Administrator shall have so approved. 

(4) Any member of the Trade mav become a member of the 
Associated Machine Tool Dealers, and there shall be no inequitable 
restrictions on such membership. 

Approved Code No. 139 — Amendment No. 1. 
Registry No. 1149-12. 



Approved Code No. 306 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MICA INDUSTRY 

As Approved on July 31, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the 

Mica 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 approval of an 
amendment to a Code of Fair Competition for the Mica Industry, 
and NOTICE OF OPPORTUNITY TO BE HEARD Adminis- 
trative Order No. 306-5, dated June 11, 1934, having been published 
and no objection 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 
!Prp s I CI Gil tj 

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 
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 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: 
C. E. Adams, 

Division Adnninistrator. 

Washington,- D.C, 

July 31, 1934. 

(227) 



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 
Mica Industry, submitted by the Code Authority for the said 
Industry. 

The existing provision of Article VI, Section 6 of the Code for 
the 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 provisions 
of wliich follow closely the text of the above mentioned Orders, 
M'ili 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- 
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 un- 
employment, 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 limitation 
sub-section (a) of Section 3, sub-section (a) of Section 7 and sub- 
section (b) of Section 10 thereof. 

(c) The amenchnent and the Code as amended are not designed to 
and will not p rmit 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. 

(228); 



229 

(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. 

Kespectively, 

Hugh S. Johnson, 

A dminis trator, 

July 31, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE MICA INDUSTRY 

Section 6 of Article VI shall be stricken from the Code of Fair 
Competition for the Mica Industry and the following inserted in 
lieu thereof : 

(6) It being found necessary in order to support the administra- 
tion of the 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) Submit to the Administrator for his approval, subject 
to such notice and opportunity to be heard as he may deem neces- 
sary, (a) an itemized budget of the 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 
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. 

(6a) 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 con- 
tribution 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 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. 

(6b) " The Code Authority shall neither incur nor pay any obli- 
gation substantially in excess of the amount thereof as estimated in 
its approved budget, and shall in no event, exceed the total amount 
contained in the approved budget, except upon approval of the 
Administrator; and no subsequent budget shall contain any defi- 
ciency item for expenditure in excess of prior budget estimates ex- 
cept those which the Administrator shall have so approved." 

Approved Code No. 306 — Amendment No. 1. 
Registry No. 1013-13. 

(230) 



Approved Code No. 256 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SCHIFFLI, THE HAND MACHINE EMBROIDERY, 
AND THE EMBROIDERY THREAD AND SCALLOP 
CUTTING INDUSTRIES 

As Approved on July 31, 1934 



ORDEE 



Approving Amendment to Code of Fair Competition for the Schif- 
FLi, the Hand Machine Embroidery, and the Embroidery Thread 
AND Scallop Cutting 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 amend- 
ment to a Code of Fair Competition for the Schiffli, Hand Machine 
Embroidery and Embroidery Thread and Scallop Cutting Indus- 
tries, and notice of opportunity to file objections having been 
published thereon, and the annexed report on said amendment, con- 
taining findings with respect thereto, having been made and directed 
to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise, do hereby incorporate, by reference, said 
annexed report and do find that said amendment and the Code as 
constituted after being amended comply in all respects with the 
pertinent provisions and wull promote the policy and purposes of 
said Title of said Act, and do hereb}^ 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, 
AdTministrator for Industrial Recovery. 

Approval recommended: 
Sol a. Rosenblatt, 

Division Administrator. 

Washington, D.C, 

July 31, 193If. 

(231) 



REPORT TO THE PRESIDENT 

The President, 

The ^ylute Homo. 

Sik: The notice of opportunity to file objections to the proposed 
assessment amendment to the Code of Fair Competition for the 
Schiffli, Hand Machine Embroidery and Embroidery Thread and 
Scallop Cutting Industries, as submitted by the Code Authority, 
was published on May 29, 1934. During the period designated for 
the filing of objections, no objections were received. 

The proposed amendment was submitted by the Code Authority 
in accordance with your Order of April 14, 1934. 

The proposed amendment was revised pursuant to instructions, 
issued by the Legal Division. 

In final form this amendment has been approved by the Indus- 
trial Advisory Board, the Consumers' Advisory Board, the Research 
and Planning Division and the Legal Division of the National 
Recovery Administration. The failure of the Labor Advisory 
Board to take notice of the proposed amendment does not constitute 
an objection thereto. 

The Deputy Administrator in his final report to me on the 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 pres- 
ent 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 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 amen(hnent on behalf of the Industries as a whole. 

(d) The amendment and the Code as amended are not designed! 
to and will not permit monopolies or monopolistic practices. 

(232) 



233 

(e) The amendment and the Code as amended are not designed' 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, this amendment has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator^ 
July 31, 1934. 



808.'{5— H4 10 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE SCHIFFLI, THE HAND MACHINE EMBROIDERY, 
AND THE EMBROIDERY THREAD AND SCALLOP CUT- 
TING INDUSTRIES 

Subsection (f) of Section 8, Article V, of the Code shall be deleted. 

The following sections shall be added to Article V of the Code of 
Fair Competition for the Schiffli, Hand Machine Embroidery and 
Embroidery Thread and Scallop Cutting Industries, and shall be 
designated as Sections 12, 13, and 14 under said Article V. 

" 12. 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 mav 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 
Industries : 

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

" 13. Each member of the Industries 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 Industries complying with the Code and contributing 
to the expenses of its administration as hereinabove provided (unless 
duly exempted from making such contribution), 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. 

" 14. The Code Authority shall neither incur nor pay any obliga- 
tion substantially in excess of the amount thereof as estimated in its 
approved budget, and shall in no event exceed the total amount con- 
tained in the approved budget, except upon ajiproval of the Adminis- 
trator; 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. 256 — Amendment No. 1. 
Registry No. 231-1-05. 

(234) 



Approved Code No. 471 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

TRAILER MANUFACTURING INDUSTRY 

As Approved on July 31, 1934 



ORDER 



Approving Modification or Code of Fair Competition for the 
Trailer 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 Trailer Manufacturing Indus- 
try, as contained in a Published Notice of Opportunity to be Heard, 
Administrative Order No. 471-2, dated July 2, 1934, and no objec- 
tions having been filed as provided in said Published Notice, 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 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 provi- 
sions 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 
amended to include an approval of said Code in its entirety as 
modified, such approval and such modification 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, 
Administi'ator for Industrial Recovery. 

Approval recommended : 

C. E. Adams, 

Division Administrator. 

Washington, D.C, 

JuLy 31, 193k. 

(235) 



REPORT TO THE PRESIDENT 

The President, 

The White House^ 

Sie: An application has been duly made pursuant to and in full 
compliance with the provisions of the National Industrial Recovery 
Act, for a modification of the Code of Fair Competition for the 
Trailer Manufacturing Industry. 

The existing provision of Article VI, Section 6 of the Code for 
the said Industry, is entirely inadequate in view of Executive Order 
6678 and Administrative Order X-36, and it is therefore evident 
that the proposed modification of 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 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 Recoverj'^ 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 
restrictions of production (except as may be temporarily required), 
by increasing the consumption of industrial and a*;ricultural 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 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 Trailer Manufacturers' Association was and is a trade 
association truly representative of the aforesaid Industry, and that 
said association imposed and imposes no inequitable restrictions on 
admission to membership therein and has applied for this modifi- 
cation. 

(d) The modification and the Code as modified are not designed 
to and will not permit monopolies or monopolistic practices. 

(236) 



237 



(e) The modification and the Code as modified are not designed 
"to and will not eliminate or oppress small enterprises and will not 
•operate to discriminate against them. 

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

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

Hugh S. Johnson, 

A dministrator. 
July 31, 1934. 



MODIFICATION OF CODE OF FAIR COMPETITION FOR 
THE TRAILER MANUFACTURING INDUSTRY 



PURPOSE 

Pursuant to Article IX of the Code of Fair Competition for the 
Trailer Manufacturing Industry, duly approved by the Administrator 
on June 26, 1934, and further to effectuate the policies of Title I of 
the National Industrial Act, the following modification is established 
as a part of said Code of Fair Competition and shall be binding 
upon every member of the Trailer Manufacturing Industry. 

MODIFICATION 

Delete Section 6 of Article VI, and in place thereof, insert the 
following : 

Sectiox 6. (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 
such notice and opportunity to be heard as he may deem necessary (a) 
an itemized budget of its estimated expenses for the foregoing pur- 
poses, 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 approved 
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 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, unless 
duly exempted from making such contributions, 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. 

(c) The Code Authority shall neither incur nor pay any obligation 

(238) 



239 

substantially in excess of the amount thereof as estimated in its 
approved budget, and shall in no event exceed the total amount con- 
tained in the approved budget, except upon approval of the Admin- 
istrator; 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. 471 — Amendment No. 1. 
Registry No. 1420—01. 



Approved Code No. 423 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

DROP FORGING INDUSTRY 

As Approved on August 1, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the Drop 

Forging 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 Drop Forging Industry, 
and opportunity to be heard having been afforded all members of the 
Industry, and no objections having been filed, 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 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, 
Administrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

August i, 1931^. 

(241) 



KEPORT 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 Drop Forging Industry. Notice of opportunity to 
be heard was sent to all members of the Industry on July 2, 1934, 
and no objections were filed with the Administration. The amend- 
ment, which is attached, was presented by the Code Authority. 

The Code of Fair Competition for the Drop Forging Industry 
provides in Article IX, Section 2 that 

" This Code, except as to provisions required by the Act, may be 
modified or amended from time to time, such modifications or amend- 
ments to be based upon application by the Code Authority to the 
Administrator and such notice and hearing as he shall specify, and 
to become elfective on approval of the Administrator." 

This amendment provides that Section 4 of Article VI be de- 
leted and that certain provisions be inserted to facilitate the collec- 
tion of assessments from each member of the Industry. 

FINDINGS 

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 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 reliev- 
ing 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 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 amendment on behalf of the Industry as a whole. 

(242) 



243 

(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. 
Respectfully, 

Hugh S. Johnson, 

Adtninistrator. 
August 1, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE DROP FORGING INDUSTRY 

Amend said Code by striking out Article VI, Section 4 and 
inserting in place of said Section the following Amendment: 

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 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 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, unless duly 
exempted from making such contributions, shall be entitled to par- 
ticipate in the selection of members of the Code Authority 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. 423 — Amendment No. 1. 
fiegistry No. 1110-02. 

(244) 



Approved Code No. 45 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SADDLERY MANUFACTURING INDUSTRY 

As Approved on August 1, 1934 



ORDER 



Appro\ing Amendment of Code of Fair Competition for the 
Saddlery Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Indus- 
trial Recovery Act, approved June 16, 1933, for approval of an 
amendment to a Code of Fair Competition for the Saddlery Manu- 
facturing IndustiT, and notice of opportunity to be heard having 
been duly 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 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: 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

August, 1, 193Jf. 

(245) 



REPORT TO THE PRESIDENT 

The President, 

The White Hoiise. 

Sir: This is a report on the amendments to the Code of Fair 
Competition for the Saddlery Manufacturing Industry, which has 
been submitted in accordance with Executive Order No. G678. 

This amendment enables the Code Authority to incur such reason- 
able obligations as are necessary to support the administration of 
the code and to maintain the standards of fair competition estab- 
lished by this code. It also enables the Code Authority to submit an 
itemized budget, and an equitable basis upon which the funds neces- 
sary to support such budget shall be contributed by the members of 
the industry. Such contributions are made mandatory by this 
amendment. 

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

I find that: 

(a) The 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 the industries, by avoiding undue 
restrictions of production (except as may be temporarily required), 
bj^ increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and reliev- 
ing unemployment, by improving standards of labor, and by other- 
wise rehabilitating industry. 

(b) The code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 5, 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 process have 
not been deprived of the right to be heard prior to approval of 
said amendments. 

For these reasons the amendments have been aj^proved. 
Respectfully, 

Hugh S. Johnson, 

A dminis trator. 
August 1, 1934. 

(246) 



AMENDMENT TO CODE OF FAIR COMPETITION FOE 
THE SADDLERY MANUFACTURING INDUSTRY 

The following shall be substitiited for Article VI, Section 3 : 
1. It being found necessary to support the administration of this 
Code in order to effectuate the policy of the Act and to maintain 
the standards of fair competition established hereunder, the Code 
Authority is authorized : 

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

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary: 

(1) An itemized budget of its estimated expenses for the fore- 
going purposes, and 

(2) An equitable basis upon which the funds necessary to support 
such budget shall be contributed by all members of the Industry 
entitled to the benefits accruing from the maintenance of such 
standards, and the administration thereof; 

(c) After such budget and basis of assessment have been approved 
by the Administrator, to determine and collect equitable assessments 
as set forth, and to that end, if necessary, to institute legal proceed- 
ings therefor in its own name. 

(d) Each member of the Industry shall be liable for his or its 
equitable assessment to the expense of the maintenance of the Code 
Authority as hereinabove provided. 

(e) Only members of the Industry complying with the Code 
and contributing to the expenses of its administration as provided 
in Section 3 hereof (unless duly exempted from making such con- 
tribution) shall be entitled to participate in the selection of the 
members of the Code Authority or to receive the benefit of its volun- 
tary activities or to make use of any emblem or insignia of the 
National Recovery Administration. 

(f) 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. 45 — Amendment No. 2. 
Registry No. 915-01. 

(247) 



Approved Code No. 54 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

THROWING INDUSTRY 

As Approved on August 1, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Throwing 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 Throwing 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, 
pureuant 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, 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 : 
Robert L. Houston, 

Division Administrator. 

Washington, D.C, 

Augmt 1, 1,934. 

80835—34 11 (249) 



KEPORT TO THE PRESIDENT 

The President, 

The White Hcni-9e. 

Sir : The attached modification of Section 4 of the Code of Fair 

Competition for the Throwinji' Industiy has been made so that the 

Code Administration Connnittee may assess members of the Industry 

for the purpose of raising funds to meet the costs of administration. 

FINDINGS 

The Deputy Administrator in his final report to me on said 
amendment of said Code havinir 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 
obstructions to the free flow of interstate and foreign commerce 
Avhich tend to diminish the amount thereof, and will provide for 
the general welfare by promoting the organization of industiy for 
the purpose of cooperative action among trade groups, by inducing 
and maintaining united action of labor and management under 
adequate governmental sanction and supervision, by eliminating 
unfair competiti\ e ])ractices, by promoting the fullest possible utili- 
zation of the present })roductive cajjacity of industries, hj avoiding 
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 as amended complies in all respects with the 
pertinent provisions of said Title of said Act, including without 
limitation Subsection (a) of Section 3, Subsection (a) Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Administration Committee 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. 

(e) The amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, this amendment has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
August 1, 1934. 

(250) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE THROWING INDUSTRY 

Sections 4(c) and 4(h)(4) of the Code of Fair Competition for 
the Throwing Industry, as amended on April 19, 1934. shall be de- 
leted and the following Section inserted in the place of Section 4(c) : 

''(c) 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 Administration Committee 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 maj' 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 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. 

" 2. Each member of the Industry' shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Admin- 
istration Committee determined as hereinabove provided, and sub- 
ject to rules and regulations pertaining thereto issued by the Ad- 
ininistrator. Only members of the Industry complying with the 
Code and contributing to the expenses of its administration as here- 
inabove provided, unless dtiiy exempted from making such contri- 
butions, shall be entitled to participate in the selection of members 
of the Code Administration Committee 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. 

"■ 8. The Code Administration Committee shall neither incur nor 
pay any obligation in excess of the amount thereof as estimated in 
its approved budget except tipon approval of the Administrator; 
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. 

" 4. In voting for the Code Administration Committee each em- 
ployer in this Industry, complying with the above requirements, 
shall have one vote for each 5.000 spindles or fraction thereof oper- 
ated by him and registered with the Code Administration Com- 
mittee."' 

Apiuuved Code No. 54 — Ameiidment No. 3. 
Registry No 274-1-01. 

(251) 



Approved Code No. 270 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WOOD HEEL INDUSTRY 

As Approved on August 1, 1934 



ORDER 



ApruovixG Amendment to Code of Fair Competition for the Wood 

Heel Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recover}' Act, approved June 16. 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Wood Heel 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 
''x'onstituted after being amended comj^ly 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, 
Administrafor for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

D ivis 10 n A dmimstrator. 

Washington, D.C, 

August U 193Jt. 

(253) 



REPORT TO THE PRESIDENT 

The President. 

The White House. 

Sir: This is a report on an amendment to Article VI, Section 7 
of the Code of Fair Competition for the Wood Heel Industry ap- 
l)n)ved on Februaiy 9. 1934, and on which a notice of opportunity 
to be heard was published on July 7 in accordance witli the pro- 
visions of Title I of the National Industrial Recovery Act. This 
amendment has been submitted in accordance with Article X, Sec- 
tion '2 of the Code, 

The purpose and effect of this 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. 

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 ])roceedings 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 ade- 
quate governmental sanction and supervision, by eliminating unfair 
competitive practices, by promoting the fullest possible utilization of 
the ])resent 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 
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. 

(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 monoj)olies 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, 

(254) 



255 

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

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

Hugh S. Johnson, 

Administrator. 
August 1, 1934. 



MODIFICATION TO CODE OF FAIR COMPETITION FOR 
THE WOOD HEEL INDUSTRY 

Modify Article VI. Enforcement, by deleting Section 7 and sub- 
stituting in lieu thereof the following: 

*• Section 7. — Expenses of Code Authority. — 

" (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 lunds 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, unless duly exempted from making such contribution, shall be 
entitled to participate in the selection of members of the Code Au- 
thority or to receive 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 obli- 
gation substantially in excess of the amount thereof as estimated in 
its approved budget, and shall in no event exceed the total amount 
contained in the approved budget, except upon approval of the Ad- 
ministrator; 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. 270 — Amendment No. 1. 
Registry No. 325-01. 

(256) 



Approved Code No. 194 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BLOUSE AND SKIRT MANUFACTURING 
INDUSTRIES 

As Approved on August 2, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the 
Blouse and Skirt Manufacturing Industries 

An application having been cluh' 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 Blouse and Skirt Manu- 
facturing Industries and notice of opportunity to be heard having 
been published 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, 
Ad'tmnistrator for Industrial Recovery. 

Approval recommended : 

William P. Farnsworth, 

Acting Division Administrator. 

Washington. D.C, 

August 2, 1934. 

(257) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the procedure followed by the National 
Recovery Administration in approving an amendment to the Code- 
of Fair Competition for the Blouse and Skirt Manufacturing Indus- 
tries, as approved on December 30, 1933, which empowers the Code 
Authority to assess members of the Industries in order to obtain 
funds for purposes of Code administration. This amendment car- 
ries out the terms of your Order of April 14, 1934. 

This amendment was submitted by the Code Authority for the 
Blouse and Skirt Manufacturing Industries on behalf of the Blouse 
and Skirt Manufacturing Industries. A notice of opportunity to 
be heard to the amendment, as proposed by the Code Authority, 
was subsequently issued, and an adequate opportunity was given 
all interested parties to voice their objection to the approval of this 
amendment. No objections, however, were filed with the Deputy 
Administrator. 

The Deputy Administrator in his final report to me on this 
amendment to said Code, having found as herei'' 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 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 i:)urpose 
of cooperative action among trade groups, b}' 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 in- 
creasing the consumption of agricultural and industrial 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. 

(d) The amendment and the Code as amended are not designed tO' 
and will not permit monopolies or monopolistic practices, 

(258) 



259 

(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 the approval of said 
amendment. 

For these reasons this Amendment has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
August 2, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE BLOUSE AND SKIRT MANUFACTURING IN- 
DUSTRIES 

The f()llowin;nr shall be added to Article V of the Code of Fair Com- 
petition for the Blouse and Skirt Manufacturing Industries and 
shall be designated as Sections 5. 6, 7, and 8. 

Sectiox 5. It being- found necessary in order to support the ad- 
ministration of this Code and to maintain the standards oi 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 purpose, and to meet such obligations out 
of funds which may be raised as hereinafter provided and which 
shall be held in trust for the pur[)oses of the Code; 

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heai'd 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 Achninistrator. 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 6. 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- 
tribiiting to the expenses of its administration as hereinabove ])ro- 
vided (unless duly exempted from making such contribution), 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 7. Failure on the part of any member of the Industry to 
contribute his or its equitable contribution to the expenses of main- 
taining the Code Authority, determined as hereinabove provided, 
shall be a violation of this Code, subject, however, to rules and regu- 
lations issued by the Administrator which pertain thereto. 

Section 8. The Code Authority shall neither incur nor pay any 
obligations substantially in excess of the amount thereof as esti- 
mated in its approved budget ; and shall in no event exceed the total 
amount contained in the approved budget, except upon approval of 
the Administrator; and no subsequent budget shall contain any de- 
ficiency items for expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Approved Code No. 194 — Ameudiuent No. 1. 
Registry No. 210-01. 

(2G0) 



[^, Approved Code No. 414 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BOBBIN AND SPOOL INDUSTRY 

As Approved on August 2, 1934 



OKDER 



Modification or Code of Fair Competition for the Bobbin and 

Spool Industry 

An application havinfr been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Eecovery Act, approved June IG. 1933, for approval of a modifica- 
tion of the Code of Fair Competition for the Bobbin and Spool 
Industry, and as contained in a Published Notice of Opportunity to 
File Objections, Administrative Order No. 414-4 dated July 7, 1934, 
aAd no objections having been filed as provided in said Published 
Notice, 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 65'43-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 consti- 
tuted 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, such approval and such modification to take effect ten 
(10) days from the elate 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 Jyidustrial Recover p. 

Approval recommended : : 

Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

August 2. 193k. 

(2«3 ) 



REPORT TO THE PRESIDENT 

The Presidext, 

The White House. 

Sir : An application has been duly made pursuant to and in full 
conij^liance with the provisions of the National Industrial Recovery 
Act for modification of the Code of Fair Competition for the Bobbin 
and Spool Industry, submitted by the Code Authority for the said 
Industry. 

The existing provision of Article VI, Section 9. of the Code for 
said Industrv is entirelv 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 tliat the proposed modifica- 
tion of Article VI, Section 9, 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 modi- 
fication of said Code havinjr found as herein set forth and on the 
basis of all the proceedings in tliis matter. 

I find that : 

(a) Tlie 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 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 su[)ervision, by eliminating unfair competitive practices, 
by promoting the fullest possible utilization of the present productive 
capacity of the industries, by avoiding undue restrictions of produc- 
tion (except as may be temi)orarily required), by increasing the con- 
sumption of industrial and agricultural products tiirough increasing 
})urchasing power, by reducing and relieving unemployment, by im- 
})roving standards of labor, and by otherwise rehabilitating industr3\ 

(b) The CVxle as modified complies in all respects with the perti- 
nent jirovisions 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 modification and the Code as modified are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) The modification and the Code as modified are not designed to 
and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(262) 



263 

(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 
jnodification. 

For these reasons, therefore, I have approved this modification. 
EespectfuUy, 

Hugh S. Johnson, 

Administrator, 
August 2, 1934. 



MODIFICATION TO CODE OF FAIR COMPETITION FOR 
THE BOBBIN AND SPOOL INDUSTRY 

Purpose 

Pursuant to Article VI. Section 11 (e) of the Code of Fair 
Competition for the Bobbin and Spool Industry duly approved by 
the President on May 3, 1984. 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 Competi- 
tion and shall be binding upon every member of the Bobbin and 
Spool Industry. 

^Modification 

Delete entire Section d of Article VI, and insert in lieu thereof 
the following new Section 9. 

""Section 9. (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 tlie Act. tlu' 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 ; 

"(S) To submit to the Administrator for his approval, subject to 
such notice and o})portunity 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 
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. 

"•(b) Each member of the Industry shall pay his or its equitable 
'^■ontril)Ution to the expenses of the maintenance of the Code Author- 
ity, determined as hereinabove ])rovided. 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, unless 
duly exempted from making such contributions, 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 Adminis- 
tration. 

(264) 



265 

"(c) The Code Authority shall neither incur nor pay any obliga- 
tions substantially in excess of the amount thereof as estimated in 
its approved budget, and shall in no event exceed the total amount 
contained in the budget, except upon approval of the Administrator; 
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. 414 — Amendment No. 1. 
Registry No. 1333-1-06. 



80835—34- 



Approved Code No. 1 — Amendment No. 9 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

COTTON TEXTILE INDUSTRY 

As Approved on August 2, 1934 



ORDER 



Approving Modification of Code of Fair Competition for the 
Cotton Textile Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Cotton Textile Industry, 
and opportunity to be heard thereon having been duly afforded to all 
interested parties and the annexed report on said amendment, con- 
taining findings v^^ith respect thereto, having been made and directed 
to til© PrGsiQGnt * 

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 the 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 : 
Robert L. Houston, 

Division Administrator. 

Washington, D.C, 

August 2, 193 If. 

(267) 



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 Cotton Textile Indiistiy. The 
amendment, which is attached, was presented by the Code Authority. 

Xotice of opportunity to be heard on this amendment was given 
and no objections were received. 

The amendment provides that that portion of sub-division 4 of 
the second paragraph of Section 1, defining piece dyeing machines 
as " productive machinery "* shall be stricken out and that " piece 
dyeing machines where the same are used in production of unprinted 
fabrics " shall be inserted, because of the fact that in cases where 
a fabric after being dyed in the piece is to be printed, the piece 
dyeing machine no longer remains the productive machinery. 

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 
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 elinunating 
unfair competitive practices, by promoting the fullest possible utili- 
zation of the present productive capacit}' 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 
Su})section (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 a.s amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(268) 



269 

(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, 

A dminis trator. 
August 2, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE COTTON TEXTILE INDUSTRY 

That subdivision (4) of the second paragraph of Section I of 
the Code reading as follows : 

"(4) Piece dyeing machines" shall be stricken out and that the 
following be substituted in lieu thereof : 

"(4) Piece dyeing machines where the same are used in the pro- 
duction of unprint^d fabrics; ". 

Approved Code No. 1 — Amendment No. 9. 
Registry No. 299-25. 

(270) 



Approved Code No. 9 — Amendment No. 19 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 

As Approved on August 2, 1934 



ORDER 



AppRO^^NG Amendment of 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 an Amend- 
ment 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 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 foi^ Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

August 2, 1931^. 

(271) 



REPOKT TO THE PRESIDENT 

The President, 

The 'White House. 

Sir : On Aiig'iist 19. 1933. yon approved the Code of Fair Compe- 
tition for the Lumber and Timber Products Industries. 

This is a report on Amendment No. 72 to that Code, Public Hear- 
ing on which was conducted in Washington. D.C.. on June 22, 1934. 
This Amendment will (a) clarify the nature of the products under 
the Pacific Veneer Package Subdivision of the Code, (b) eliminate 
the overlapping of jurisdiction in certain of the subdivisions under 
the Wooden Package Division; and (c) include certain items, par- 
ticularly wooden veneer baskets, which logically belong under this 
subdivision 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 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 ])urposes 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 grou])S. 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 (exce})t as nuiy be temporarily required), by 
increasing the consumption of industrial and agricultural products 
through increasing i)urchasing 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 perti- 
nent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3. Subsection (a), of Section 7, 
and Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Autliority 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. 

(272) 



273 

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

For these reasons, therefore, I have approved this amendment to 
the Code. 

Respectfully, 

Hugh S. Johnson, 

A dministrator, 
August 2, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE LUMBER AND TIMBER PRODUCTS INDUSTRY 

Amendment No. 72 

In Schedule A 28, Pacific Veneer Package Subdivision, strike out 
the paragraph headed Subdivision (Art. He) and Products (Art. 
II a) and substitute therefor the following: 

Subdivision (Art. II c) and Products (Art. Ha): The Pacific 
Veneer Package Subdivision of the Wooden Package Division con- 
sists of manufacturers of baskets and hampers made entirely of 
"Nvood 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, includ- 
ing veneer hoops, basket and hamper bottoms in the States of Idaho, 
Washington Oregon, California, Arizona, Nevada, Utah and that 
part of the otates of Montana, Wyoming, Colorado and New Mexico 
west of the 108th degree west longitude. 

Approved Code No. 9 — Amendment No. 19. 
Registry No. 313-1-06. 

(274) 



Approved Code No. 154 — Ariiendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

METAL TANK INDUSTRY 

As Approved on August 2, 1934 



ORDER 



Approving Amendments to the Code of Fair Competition for the 
Metal Tank 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 Metal Tank Industry, and 
hearings having been duly held thereon and the annexed report on 
said amendments, containing findings with respect thereto, having 
been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to 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 amendments 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 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 Administra- 
tor issues a subsequent order to that effect. 

Hugh S. Johnson, 
Adniimstrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Division Adinhustrator. 

Washington, D.C, 

August 2^ 193 Jf. 

(275) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the Amendments to the Code of Fair 
Competition for the Metal Tank Industry, as revised after a Piibhc 
Hearin<r conducted in Washington on ]\Iay ii9. 1934, in accordance 
witli Article IX. Section (<r) of said Code as approved on December 
15. 1933. Due opportunity to be heard was afforded all interested 
parties. 

The Amendments provide for mandatory assessments against 
members of the Industry for the expense of Code Administration; 
revisions of and additions to the trade practice provisions to meet the 
needs of the Industry, 

FINDINGS 

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 
Xational 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 prac- 
tices, 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 indu.^trial and agricultural products through 
increasing purchasing power, by reducing and relieving unemploy- 
ment, by improving standards of labor, and by otherwise rehabilitat- 
ing industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act. including without limita- 
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) The Amendments and the Code as amended are not designed 
to and Avill 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. 

(276) 



277 

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

For these reasons, these Amendments have been approved by me. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
August 2. 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE :\IETAL TANK INDUSTRY 

Purpose 

Pursuant to Article IX, Section (g) of the Code of Fair Competi- 
tion for the Metal Tank Industry, duly approved by the President 
on December 15, 1933. and further to effectuate the policies of Title 
I of the National Industrial Recovery Act, the following amend- 
ments are established as a part of said Code of Fair Competition and 
shall be binding upon every member of the Metal Tank Industry. 

Article YI — Administration 

The second sentence of Subsection (c) of Section 1 is hereby 
amended by deleting the words *"' creating and '• to read as follows : 

Any member of the Industrj^ may participate in the preparation 
and any revision of and additions or supplements to this Code by 
assuming his share of the responsibility of administering it and 
paying his proper prorata share of the cost of administering it. either 
by becoming a member of the Association or by paying his proper 
share of the costs to the Code Authority. 

There is hereby added at the end of Section 2 a new sub-section 
lettered (i) to read as follows: 

(i) Nothing contained in this Code shall constitute the members 
of the Code Authorit}^ partners for any purpose. Nor shall any mem- 
ber of the Code Authority be liable in any manner to anj' one for any 
act of any other member, officer, agent or employee of the Code 
Authority. Nor shall any member of the Code Authority exercising 
reasonable diligence in the conduct of his duties hereunder be liable 
to any one for any action or omission to act under the Code, except 
for his own wilful malfeasance or nonfeasance. 

There are hereby added at the end of Section 2 new sections 
numbered Section 3, Section 4. and Section 5 to read as follows : 

Section 3. 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 
projier for the foregoing purposes, and to meet such obligations out 
of funds which may Ije raised as hereinafter provided and which 
sliall be held in trust for the purposes of the Code; 

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

(278) 



279 

(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 4. Each member of the Industry sliall 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 con- 
tributing to the expenses of its administration as hereinabove pro- 
vided, unless duly exempted from making such contribution, 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. 

Section 5. The Code Authority shall neither incur nor pay any 
obligation substantially in excess of the amount thereof as estimated 
in its approved budget ; and shall in no event exceed the total amount 
contained in the approved budget except upon approval of the Ad- 
ministrator: and no subsequent budget shall contain any deficiency 
item for expenditures in excess of prior budget estimates except those 
Avhich the Administrator shall have so approved. 

Article YII — Trade Practices 

Section 1. sub-section (d) is hereby deleted, and there is added a 
new sub-section lettered (d) to read as follows: 

(d) Secretly offering or making any payment or allowance of a 
rebate, refund, commission, credit, unearned discount or excess allow- 
ance, whether in the form of money or otherwise, or secretly offering 
or extending to any customer am^ special service or privilege not ex- 
tended to all customers of the same class, for the purpose of 
influencing a sale. 

Section 1, sub-section (s) is herebj^ amended to read as follows: 

(s) Changing quotations, except (1) to make them conform to 
revisions in price lists: (2) to adjust such quotations to changes in 
specifications: (3) to correct bona fide errors. 

There is hereby added at the end of Section 1, sub-section (v) a 
ncAv sub-section lettered (w) to read as follows: 

(w) 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 Itnowledge of such em- 
ployer, principal or party. This provision shall not be construed 
to prohibit free and general distribution of articles commonly used 
for advertising except so far as such articles are actually used for 
commercial bribery as hereinabove defined. 

Section 2 is hereby amended to read as follows : 

Section 2, Any deviation from the provisions of this Code, or any 
amendments thereto, by any member of the Industry, either directly 



280 

or indirectly, shall be considered an unfair method of competition 
and a violation of this Code by such member. 

Article XI 

There is hereby added at the end of Article X a new article num- 
bered Article XI to read as follows : 

Article XI — Effecti\t: Date of Amendments 

The foregoing amendments shall become effective on the date of 
approval by the Administrator. 

Approved Code No. 154 — Amendment No. 1. 
Registry No. 1136-01. 



Approved Code No. 182 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

RETAIL FOOD AND GROCERY TRADE 

As Approved on August 2, 1934 



OEDER 



Approving Modification of Code of Fair Competition for the 
Eetail Food and Grocery Trade 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a modifica- 
tion to a Code of Fair Competition for the Retail Food and Grocery 
Trade, and hearings having been duly held thereon 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 
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 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 : 
Armin W. Rilet, 

Divisw/i Administrator. 

Washington, D.C, 

August 2, 19 3 If. 

(281) 



80835—34— — 13 



REPORT TO THE PRESIDENT 

The President. 

Thi W/i/fe House. 

Sir: This is a report on a modification of subsection (f), Section 
1. of Article X of the ai)proved Code of Fair Competition for the 
Retail Food and Grocery Trade, number 182. This Code was ap- 
proved by you on December 30, 1933. 

Pursuant to Executive Order No. G678. dated April 14. 1934, the 
Code Authority for the Retail Food and Grocery Trade, in accord- 
ance with subsection (d). Section 1, of Article X of said Code, hav- 
ing 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 applica- 
tion for a modification of said Code in order to i)rovi(le for a method 
of assessment and to support the expense of the administration of 
this Code. 

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 wel- 
fare by promoting the organization of the industry for the purpose 
of cooperative action of labor and man^agement under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by in- 
creasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as modified complies in all respects with the per- 
tinent provision 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 mmlification 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 
operate to discriminate against them. 

(282) 



283 

(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. 

In accordance with Executive Order No. 6678, dated April 14, 
1934, the modification of this Code has been approved by me. 
Kespectfully, 

Hugh S. Johnson, 

Administrator. 
August 2, 1934. 



AMEXDMEXT TO CODE OF FAIR COMPETITION FOR 
THE RETAIL FOOD AND GROCERY TRADE 

Delete subsection (f), Section 1, of Article X, and insert in lieu 
thereof the following: 
(f) Expenses: 

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 effectuate the policy of the National Indus- 
irial Recovery Act, the National Food and Grocery Distributors' 
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 trade ; 

(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 trade, and to that 
end. if necessary, to institute legal proceedings therefor in its own 
name. 

2. Each member of the trade shall pay his or its equitable contri- 
bution to the expenses of the maintenance of the National Food and 
Grocery Distributors' Code Authority, determined as hereinabove 
provided, and subject to rules and regulations pertaining thereto 
issued by the Administrator. Only members of the trade complying 
with the Code and contributing to the expenses of its administration 
as hereinabove provided, shall be entitled to participate in the selec- 
tion of members of the Food and Grocery Distributors' Code A.u- 
thorities 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 ]jay 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. 

Approvefl Ccnle No. 182 — Amendment No. 2. 
Eegistry No. 123-01. 

(284) 



Approved Code No. 184 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SHOE AND LEATHER FINISH, POLISH AND 
CEMENT MANUFACTURING INDUSTRY 

As Approved on August 2, 1934 



ORDER 



Approving Amendments of Code of Fair Competition for the 
Shoe and Leather Finish, Polish and Cement 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 Shoe and Leather 
Finish, Polish and Cement Manufacturing Industry, and hearings 
having been duly held thereon and the annexed report on said 
amendments, containing findings with respect thereto, having been 
made and directed to the President: 

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 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, provided, however, that the following changes 
be and they are hereby made : 

1. Subsection (I) of Section 1 of Article VII be deleted. 

2. That the following be inserted as Article VII, Section 1, Sub- 
section (J) 3 : 

3. (a) Wilfully destructive price cutting is an unfair method of 
competition and is forbidden. Any member of the Industry or of 
any other Industry or the customers of either may at any time com- 
plain to the Code Authority that any quoted price constitutes unfair 
competition as destructive price-cutting, imperiling small enterprises 

(285) 



286 

or tending toward monopoly or the impairment of code wages and 
working conditions. The Code Authority shall within five days 
afford an opportunity to the member using the price to answer such 
complaint and shall within fourteen 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 
Planning Division of N.R.A. which shall render a report and recom- 
mendation thereon to the Administrator. 

(b) When 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) "Wlien 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. 

This order shall become effective ten days after the date hereof 
unless within that time good cause to the contrary shall be shown 
to the Administrator and he shall issue a subsequent order to that 
effect. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Geo. L. Berry, 

Division AdTThinistrator. ■ ■ '■' 

Washington, D.C. 

Aug%ist i?, 193^. _: 



KEPORT TO THE PRESIDENT 

The President, 

The White Rouse. 

Sir : A Code of Fair Competition for the Shoe and Leather Finish, 
Polish and Cement Manufacturing Industry was approved by you 
on December 30, 1933, and became effective on January 8, 1934. 

Since that time, it has been deemed advisable to bring within the 
scope of the above Code a group which is closely allied to the Shoe 
and Leather Finish, Polish and Cement Manufacturing Industry. 
This group is the Fabric Cleaner Industry. 

The Code Authority for the Shoe and Leather Finish, Polish and 
Cement Manufacturing Industry and a group representing approxi- 
mately seventy -five (75%) per cent of the Fabric Cleaner manu- 
facturers, submitted an application to include the above mentioned 
group under the approved Code. A Public Hearing on the proposed 
amendments was conducted in Washington, May 22nd, 1934, in ac- 
cordance w^th the provisions of the National Industrial Recovery 
Act. 

By amending the definition of the Industry and the definition of 
the Shoe Polish Division, under which Division the Fabric Cleaner 
manufacturers will be classified, the group has been included under 
the provisions of the Shoe and Leather Finish, Polish and Cement 
Manufacturing Industry's Code. The Code Authority has been en- 
larged to fourteen (14) members in order that it may be truly repre- 
sentative of the Industry. The Code has also been amended to allow 
the Code Authority to assess members of the Industry in order that 
the Code may be properly administered. There has also been added 
a provision for the formulation of methods of cost finding and ac- 
counting, which provision applies only to the Shoe and Leather 
Finish and Cement Division. 

THE INDUSTRY 

The Fabric Cleaner Industry includes the manufacture of liquids 
for cleaning wearing apparel sold under a trade name, and not sold 
as a basic commodity. There are about 550 establishments listed as 
manufacturers to some extent of fabric cleaners. Most of these firms 
are small or operate part-time under this classification. The larger 
shoe polish manufacturers generally make fabric cleaners as do some 
oil companies and chemical special manufacturers. 

The aggregate number of employees in 1929 is estimated at about 
1,000. Annual business is estimated at about $2,500,000 in recent 
years. 

The restrictions of the definition, together with the general lack of 
organization in the Industry make it impossible to obtain accurate 
statistical data regarding it. 

(287) 



288 

FINDINGS 

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 wel- 
fare by promoting the organization of Industry for the purpose of 
cooperative action of labor and management under adequate govern- 
mental sanction and super\nsion, 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 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 Fabric Cleaner Group of Manufacturers was and is an 
industrial group, which, together with the Code Authority are 
truly representative of the aforesaid Industry and that said group 
and said Code Authority imposed and imposes no inequitable re- 
strictions on admission to membership therein and has applied for 
these amendments. 

(d) The amendments and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, therefore, the amendments have been approved. 
Respectfully, 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 
August 2, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOE THE 
SHOE AND LEATHER FINISH, POLISH AND CEMENT 
MANUFACTURING INDUSTRY 

Article II, Section 1 shall be amended to read as follows: 

" The term ' Shoe and Leather Finish, Polish and Cement Manu- 
facturing Industry ' as used herein includes the manufacturing for 
shoes and leathers of: Blackings, dressings, liquid rubber cements 
(meaning adhesives), pastes, pyroxylin cements, rubber (synthetic 
or natural, either dispersed or dissolved), polishes, dyes, and clean- 
ers, stitching waxes, burnishing waxes, finishes, binders, topcoats, 
reenforcing materials for innersoles, and other similar chemical prod- 
ucts for use on shoes or leather, or liquids for cleaning wearing ap- 
parel sold under a trade name, and not sold as a basic commodity, 
together with such allied or related products as may from time to 
time, upon the approval of the President, be included under the 
provisions of this Code." 

Article II, Section 2. The following sentence shall be added 
thereto : 

" This division shall include the manufacturers of liquids for 
cleaning wearing apparel sold under a trade name, and not sold as 
a basic commodity." 

Article VI, Section 2, shall be amended to read as follows : 

" Section 2. Organization and Constitution of Code Authority 
Board. — The Code Authority Board shall be composed of members of 
the Industry and shall consist of fourteen (14) members to be se- 
lected as follows: Eight (8) members of the Code Authority Board 
shall be appointed by the Administrator from members of the Shoe 
Polish Division, of whom six (6) are to be appointed from members 
who are primarily manufacturers of Shoe Polish and of whom two 
(2) are to be appointed from members who are primarily Cleaning 
Fluid Manufacturers, and six (6) members from the Shoe and 
Leather Finish and Cement Division to be selected as follows : The 
Executive Committee of the Association of Manufacturers of Shoe 
and Leather Finishes and Cements shall submit the names of twelve 
(12) nominees, of whom six shall be elected by the majority vote of 
the members of the Industry as a whole. Five of the six elected 
by this method shall be members of the Association." 

Article VI, Section 7, shall be deleted and the following sub- 
stituted therefor : 

" 7. 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 ; 

(289) 



290 

(b) To submit to the Administrator for his approval subject to 
such notice and opportunity to be heard as he may deem necessary: 

(1) An itemized budget of its estimated expenses for the fore- 
going purposes, and 

(2) An equitable basis upon which the funds necessary to support 
such budget shall be contributed by 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. 

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 tlie 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 bud- 
get shall contain any deficiency item for expenditures in excess of 
prior budget estimates except those which the Administrator shall 
have so approved." 

Article VI, Subsections F and G of Section 9 shall be deleted. 

There shall be a new section added to Section 1, Article VII, which 
shall be hereinafter known as Section J : 

" Section J. 1. The Code Authority shall cause to be formulated 
methods of cost finding and accounting capable of use by all mem- 
bers of the Industr}^, and shall submit such methods to the Admin- 
istrator for review. If approved by the Administrator, full infor- 
mation concerning such methods shall be made available to all mem- 
bers of the Industry. Thereafter, each member of the Industry shall 
utilize such methods to the extent fomid practicable. Nothing here- 
in contained shall be construed to permit the Code Authority, any 
agent thereof, or any member of the Industry to suggest uniform 
additions, percentages, or differentials or other uniform items of 
cost which are designed to bring about arbitrary uniformity of costs 
or prices. 

2. (a) If the Administrator, after investigation, shall at any time 
find both (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 products 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 Oode Authority may cause an impartial agency to investi- 
gate costs and to recommend to the Administrator a determination of 
the stated minimum price of the product affected by the emergency 



291 

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 speci- 
fied 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. 

Approved Code No. 184 — Amendment No. 1. 
Registry No. 621-0'5. 



Approved Code No. 196 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE FOOD AND GROCERY TRADE 

As Approved on August 2, 1934 



ORDEE 



Approving Modification of Code of Fair Competition for the 
Wholesale Food and Grocery Trade 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a modi- 
fication to a Code of Fair Competition for the Wholesale Food and 
Grocery Trade, and hearings having been duly held thereon 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 Reeoverj, 
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 perti- 
nent 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: 
Armin W. Riley, 

Division Ad/niinistrator. 

Washington, D.C, 

August 2, 193^. 

(293) 



REPORT TO THE PRESIDENT ^ 

The President, 

The White House. 

Sir: Thi>; is a report on a modification of subsection (f). Section 1, 
of Article VIII of the approved Code of Fair Competition for the 
Wholesale Food and Grocery Trade, number 196. This Code was 
approved bv vou on Januarv 4, 1934. 

Pursuant to Executive Order No. 6678, dated April 14, 1934, the 
Code Authority for the Wholesale Food and Grocer}^ Trade, in ac- 
cordance with subsection (d), Section 1, of Article VIII of said 
Code, haviufj found it necessary in order to support the administra- 
tion 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 a modification of said Code in order to pro- 
vide for a method of assessment and to support the expense of the 
administration of this Code. 

The Deput}' 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 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 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), bv increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemploj'ment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) The Code as modified complies in all respects with the perti- 
nent provision 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 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. 

(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. 

(294) 



295 

(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. 

In accordance with Executive Order No. 6678, dated April 14, 
1934, the modification of this Code has been approved by me. 
Respectfully, 

Hugh S. Johnson, 

AdTnmistrator. 
August 2, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE WHOLESALE FOOD AND GROCERY TRADE 

Delete subsection (f). Section 1, of Article VIII, and insert in 
lieu thereof the following : 
(f) Expenses: 

1. 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 polic}^ of the National 
Industrial Recovery Act. the National Food and Grocery Distribu- 
tors' 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 liereinafter 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 
trade ; 

(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 trade, and to 
that end, if necessary, to institute legal proceedings therefor in its 
own name. 

2. Each member of the trade shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the National Food 
and Grocery Distributors' Code Authority, determined as herein- 
above provided, and subject to rules and regulations pertaining 
thereto issued by the Administrator. Only members of the trade 
complying with the Code and contributing to the expenses of its 
administration as hereinabove provided, shall be entitled to partici- 
pate in the selection of members of the Food and Grocery Dis- 
tributors' Code Authorities 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 2li\\ obligation 
in excess of the amount thereof as estimated in its approved budget, 
except upon ajaproval 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. 196 — Amendment No. 2. 
Registry No. 123-3-10. 

(296) 



Approved Code No. 18 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CAST IRON SOIL PIPE INDUSTRY 

As Approved on August 3, 1934 



ORDEK 



Approving Amendment to Code of Fair Competition for the 
Cast Iron Soil Pipe Industry 

An application having been duh^ made jDursuant 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 Comj)etition for the Cast Iron Soil Pipe 
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 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 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 Iiidustrial Recovery. 

Apj)roval recommended : 
Barton W. Murray, 

Division Administrator. 

Washington. D.C. 

August 3, 1934. 

80835—34 14 (297) 



REPORT TO THE PRESIDENT 

The President, 

The lYhite House. 

Sir: This is a report on a Public Hearing on the Approved Code 
of Fair Competition for the Cast Iron Soil Pipe Industry, held in 
Washington, D. C, January 23, 1934, in accordance with the pro- 
visions of the National Industrial Recovery Act. 

The Code of Fair Competition for the Cast Iron Soil Pipe Indus- 
try was approved by the President September 7, 1933, and amended 
by Order of the President dated December 18, 1933. 

The Code of Fair Competition for the Cast Iron Soil Pipe Indus- 
try, which was among the first submitted to the Administration, did 
not contain many provisions which experience has since shown are 
necessary to effectuate the purposes of the Act, and accordingly after 
numerous protests were received by the Administration as to the 
hardship the Code was working on members of the Industry, a 
Public Hearing was ordered by the Administration to provide an 
opportunity for anyone to file objections or offer amendments to 
this Code. 

At the Public Hearing the Cast Iron Soil Pipe Industry repre- 
sented by its Administrative Agency, the Cast Iron Soil Pipe Asso- 
ciation, submitted a proposed amendment to revise its Code of Fair 
Competition. Said amendment was duly heard at the hearing and 
all protests were duly considered. 

The amendment provides for the addition of certain standard 
provisions in order that the Code might conform to the present 
policy of the Administration; it further provides for the establish- 
ment of a Code Authority which will be representative of the In- 
dustry and conform to the standards of the Administration. 

The Code no longer contains any provisions or appendices which 
might be construed to mean the mandatory use of the Birmingham 
basing point. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 
said auiendment 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 j^romote 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 tiiereof, 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 

(298) 



299 

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 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 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, 
provided that such approval and such amendment take effect fifteen 
(15) days from the date hereof, unless good cause to the contrary 
is shown before that time, and I issue a subsequent order to that 
effect. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 
August 3, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
CAST IRON SOIL PIPE INDUSTRY 

Amend Section 1, by deleting in its entirety, and the following sub- 
stituted therefor : 

Section 1(a) For the purpose of this Code the term " Industry " 
means and includes the business of producing and selling Cast Iron 
Soil Pipe and Cast Iron Soil Pipe Fittings. 

Sectiox 1 (b) The term " cast iron soil pipe " as used herein 
means pipe for carrying soil and liquid waste matter from plumbing 
fixtures of buildings into the main sewer system, also for ventilating 
purposes in connection witli plumbing systems within buildings, 
and for carrying other liquids where not under pressure. It is manu- 
factured in lengths of five (5) feet only, and in diameter ranging 
from 2 inches to 15 inches, with a wall thickness of % inch to iV 
inch. Cast Iron Soil Pipe is manufactured from pig iron and scrap 
iron by casting horizontally in green sand molds and green sand 
cores — by the hand-ramming stripping-plate methods. Its process 
of manufacture and use is not comparable with cast iron pressure 
pipe, which is manufactured in lengths of six (6) to eighteen (18) 
feet by the " pit cast " and " centrifugal " methods, and ranges in 
diameter from two (2) to ninety-six (96) inches, and is used for 
carrying liquids and gas under pressure. 

Sectiox 1 (c) The term " fittings " as used herein means cast iron 
soil pipe fittings, cast iron service, valve, roadway and meter boxes. 

Section 1 (d) The term " member of the Industry " means and 
includes, but without limitation, any individual, partnership, asso- 
ciation, corporation, trust, receivership or other form of enterprise 
engaged in the industry, either as an employer or on his or its own 
behalf. 

Section 1 (e) The term " association " as used herein means the 
Cast Iron Soil Pipe Association. 

Section 1 (f) The term ''employee" as used herein means and 
includes any and all persons engaged in this industry, however com- 
pensated, except a member of the industry. 

Section 1 (g) The term '' employer " as used herein includes any 
one by whom such employee is compensated or employed. 

Section 1 (h) The term "President", "Act", and "Administra- 
tor ", as used herein mean respectively the President of the United 
States. Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery. 

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

Section 1 (j) The term "Code" where used in this amendment 
5-hall mean the Code of Fair Competition of the Cast Iron Soil 
Pipe Industry as approved by the President, and its Amendments. 

Amend Section 3, by adding the following new subsections. 

Section 3 (f) Wage Adjustmentf^ Above Minimum. — Equitable 
adjustments of compensation of employees receiving more than the 

(300) 



301 

minimum rates of pay herein prescribed shall be made by all em- 
ployers who have not heretofore made such adjustments, and all 
employers shall within thirty (30) days after approval of this Sec- 
tion, report in full to the Code Authority concerning such adjust- 
ments whether made prior to or subsequent to such approval, pro- 
vided, however, that in no event shall hourly rates of pay be reduced. 

Section 3 (g) Female Employees. — Female employees performing 
substantially the same work as male employees shall receive the same 
rate of pay as male employees, and, where they displace men, they 
shall receive the same rate of pay as the men they displace. 

Section 3 (h) Handicapped Persons. — A person whose earning 
capacity is limited because of age or physical or mental handicap 
or other infirmity, may be employed on light work at a wage below 
the minimum established by this Code if the employer obtains from 
the 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 instructions of the United States De- 
partment of Labor in issuing certificates to such persons. Each em- 
ployer shall file monthly with the Code Authority a list of all such 
persons employed by him, showing the wages paid to and the maxi- 
mum hours of work for such employee. 

Amend Section 4, by adding the folloAving new subsections. 

Section 4 (e) The hourly limitations of Section 4 (a) of the Code 
shall not apply to any employee engaged in emergency maintenance 
or emergency repair work, involving breakdowns, and protection of 
life and property; provided, however, that time and one-half (II/2) 
the regular rates shall be paid for all hours worked in excess of eight 
(8) hours per day, or forty (40) per week. 

Section 4 (f) Piecework Compoisatlon — Minimum Wages. — 
This Section establishes a minimum rate of pay which shall apph', 
irrespective of whether an employee is actually compensated on a 
time rate, piece-work, or other basis. 

Amend Section 5, by adding the following new subsections. 

Section .5 (a) ReclassifiGation of Em.ployees. — No employer shall 
reclassify employees or duties of occupations performed, or engage in 
any other subterfuge so as to defeat the purposes or provisions of the 
Act or of this Code. 

Section 5 (b) Standards for Safety and Health. — Every em- 
ployer shall provide for the safety and health of his employees at 
the place and during the hours of their employment. Standards for 
safety and health shall be submitted by the Code Authority to the 
Administrator within three (3) months after the effective date of 
this Amendment. 

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

Section 5 (d) Posting. — All employers shall post and keep posted 
copies of this Code in conspicuous places accessible to all employees. 
Every member of the Industry shall comply with all rules and regu- 
lations relative to the posting of the i3rovisions of Codes of Fair 



302 

Competition which may from time to time be prescribed by the 
Administrator. 

Sectiox 5 (e) Xo employer shall knowingly permit any employee 
to work for any time, which, when added to the time spent at work 
for another employer or employers in this Industry exceed 40 hours 
per week. * 

Section 5 (f ) No employee shall be dismissed or demoted by reason 
of making a complaint or giving evidence with respect to an alleged 
violation of the Code. 

Amend Section 7 by deleting in its entirety, and substituting the 
following therefor : 

Section 7 (a) There shall be forthwith constituted a Code Author- 
ity consisting of the six (6) members of the Code Committee of the 
Cast Iron Soil Pipe Association and one (1) member to be elected 
from among the members of the industry who are not members of 
the Association, by a fair method of selection which shall be subject 
to review and disapproval by the Administrator, 

In addition to the membership as above provided there may be one 
(1) to three (3) members, without vote, to be appointed by the 
Administrator. 

Section 7 (b) Each trade or industrial association, directly or 
indirectly participating in the selection or activities of the Code 
Authoritj^ 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 7 (c) In order that the Code Authority shall at all times 
be truly representative of the industry, and in other respects comply 
with the provisions of the Act, the Administrator may prescribe 
such hearings as he may deem proper ; and thereafter if he shall find 
that the Code Authority is not truly representative or does not in 
other respects comply with the provisions of the Act, may require 
an appropriate modification in the method of selection of the Code 
Authority. 

Section 7 (d) Xo member of the Code Authority shall partici- 
pate as a member of such Code Authority in any proceedings in 
which he is interested by virtue of any connections with the Com- 
plainant or Respondent, and in the event of any such disqualification 
the Administrator may appoint an alternate, who shall be a member 
of the same group as the disqualified member, to act in the place of 
the disqualified member of the Code Authority. 

Section 7 (e) Xothing contained in this Code shall constitute 
the members of the Code Authority partners for any purpose; nor 
shall any j^rovisions of this Code be considered to render any member 
of the CN:)ck^ Authority, exercising reasonable diligence in the conduct 
of his duties hereunder, liable to anyone for any action or omission 
to act under this Code, except for his own wilful malfeasance or 
nonfeasance. 

Section 7 (f) The Code Authority is hereby designated as the 
agency to administer, supervise and promote observance of the pro- 



303 

visions of this Code, subject to the right of the Administrator upon 
review to disapprove any action taken by the Code Authority. 

Section 7 (g) The Code Authority may adoj)t by-laws and rules 
and regulations for its procedure and for the administration and 
enforcement of the Code, subject to the approval of the Admin- 
istrator. 

Section 7 (h) The Code Authority shall have the right to use 
such other agencies or individuals 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 responsi- 
bilities under this Code and that such agencies shall at all times be 
subject to and comply with the provisions hereof. 

Section 7 (i) Upon complaint of anj^ member or upon its own 
initiative, the Code Authority shall investigate alleged violations of 
this Code under such rules and regulations as the Administrator 
may prescribe. 

Section 7 (j) In order that the Administrator may be informed 
of the extent of observance of the provisions of this Code and the 
extent to which the policy of the Act is being effectuated in the 
Industry, the Code Authority shall make such reports to the Ad- 
ministrator as he may require and obtain from members of the 
Industry through an impartial non-member of Industry such in- 
formation and reports as are required for the administration of 
this Code. No individual reports shall be disclosed to any other 
member of the industry or any other party except to such govern- 
mental agencies as may be directed bj^ the Administrator. 

Section 7 (k) In addition to information required to be sub- 
mitted to the Code Authority, all or any of the persons subject to 
this Code shall furnish such statistical information as the Ad- 
ministrator may deem necessary for the purposes recited in Section 
3 (a) of the Act to such Federal and State agencies as the Adminis- 
trator may designate; nor shall anything in this Code relieve any 
person of any existing obligation to furnish reports to Government 
agencies. 

Section 7 (1) The Code Authority shall appoint a trade practice 
committee which shall meet with the trade practice committees ap- 
pointed under such other codes as may be related to this Industry, 
for the purpose of formulating fair trade practices to govern their 
inter-relationships under this code and under such others to the end 
that such fair trade practices may be proposed to the Administrator, 
and when approved by him shall become a part of this code and such 
other Codes. 

Seciton 7 (m) The Code Authority shall establish, subject to the 
approval of the Administrator, uniform specifications for the types 
and sizes of pipe and fittings in accordance with Federal specifica- 
tions — WW-P-401, and amendments thereto, and shall cause such 
tests and inspections to be made from time to time as will adequately 
safeguard the public interest. When such uniform specifications 
have been prepared and approved by the Administrator they shall 
be published to all members of the Industry. Thereafter no mem- 
ber of the Industry shall knowingly sell or offer to sell any product 
of the Industry without it being plainly marked that it does or does 
not conform to the above specifications. This provision shall not 



304 

apply to products manufactured prior to the eifective date of these 
amendments. 

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

Amend Section 8. by deleting in its entirety, and substitute the 
following therefore : 

Section 8 (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 : 
(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. 

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

Section 8 (b) 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 contrib- 
uting to the expenses of its Administration as hereinabove provided, 
unless duly exempted from making such contributions, shall be en- 
titled to participate in the selection of members of the Code Authority 
or to receive the benefits of any of its voluntaiy activities or to make 
use of any emblem or insignia of the National Recovery Administra- 
tion. 

Section 8 (c) 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 
substantially in excess of prior budget estimates except those which 
the Administrator shall have so approved. 

Amend Section 9 and Section 10 by deleting them entirely. 

Amend Section 11, by deleting in Section 11 (B) the following 
" or plumbers' cast iron specialties ", 

Further amend Section 11 by deleting Section 11 (e) and 11 (f) 
and substituting the following therefor: 



305 

Section 11 (e) Quoting a total or lump-sum price on any schedule 
of pipe and fittings. 

Section 11 (f) No member of the industry shall secretly offer or 
make any payment or allowance of a rebate, refund, commissions, 
credit, unearned discount or excess allowance, whether in the form of 
money or otherwise, nor shall a member of the industry secretly 
offer or extend to any customer any special service or privilege not 
extended to all customers of the same class, for the purpose of influ- 
encing a sale. 

And further amend Section 11 by adding the following New Sub- 
Sections. 

Section 11 (g) Guaranteeing against advances and declines in 
published prices of the products of the Industry. 

Section 11 (h) Predating or post-dating anj^ quotation or invoice 
or accepting any pre-dated order or other predated contract for the 
sale of any products of the Industry. 

Section 11 (i) No member of the Industry shall give any cash 
discount at a rate exceeding two percent (2%). Such discount shall 
be allowed only on invoices paid on or before the 10th of the month 
for shipments made from the 16th to the end of the previous month, 
inclusive, and on invoices paid on or before the 25th of the month 
for shipments made from the 1st to the loth, inclusive, of the current 
month; provided that the period may be extended to thirty (30) days 
from date of invoice, covering shipments by water between the Pacific 
Coast States and States situated East of the Mississippi River. 

Section 11 (j) In no instance shall a cash discount be allowed on 
transactions financed through the medium of a trade acceptance or 
a promissory note. 

Section 11 (k) To accept bonds or other securities in part or in 
whole payment for products at a price which results, at the time of 
the sale, in the seller receiving less than the effective filed price for 
the product. 

Amend Section 14 by deleting in its entirety, and substituting the 
following therefor: 

Section 14 (a) A member of the Industry may commit himself to 
furnish products of the Industry over an extended period, at prices, 
for use in the construction of a particular project; if the character 
of the project is clearly defined and identified, and if the volume of 
products to be delivered is specified within minimum and maximum 
limits defined in terms of quantity on the basis of anticipated require- 
ments, provided that such prices and/or conditions of sale are not 
different than those effective prices and/or conditions of sale filed 
with the Code Authority by such member of the Industry, and effec- 
tive on the date when such commitment is made. 

Further amend the Code by adding the following new Section, to 
become Section 19: 

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

Approved Code No. IS — Amendment No. 3. 
Registry No. 1128-01. 



Approved Code No. 244 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CONSTRUCTION INDUSTRY 

As Approved on August 3, 1934 



ORDER 



Approving Modification of Code of Fair Competition for the 
Construction Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a modifi- 
cation to a Code of Fair Competition for the Construction Industry, 
and due notice and opportunity to be heard having been given 
thereon and the annexed report on said modification, containing 
findings with respect thereto, having been made and directed to the 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recov- 
ery, 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 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 Inditstrml Recovery. 

Approval recommended: 

Geo. L. Berry, ^f" 

Division Administrator. 

Washington, D.C, 

August S, 19S4. 

(307) 



REPORT TO THE PRESIDENT 

The President. 

The White House. 

Sir : This is a report on a modification of the Code of Fair Compe- 
tition for the Construction Industry which was approved by you on 
January 31, 1934. 

The effect of this amendment, modifying the powers and duties of 
the Construction Code Authority, will be to give the Construction 
Code Authority power to administer the Construction Code in any 
branch of the Industry for which no Divisional Code Authority shall 
have been established. 

The Deputy Administrator in his final report to me on said modifi- 
cation 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 
Xational Industrial Recoveiy 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 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 aj^ricultural products through 
increasing purchasing power, by reducing and relieving unemploy- 
ment, by improving standards of labor, and by otherwise rehabilitat- 
ing industry. 

(b) The Code as modified complies in all respects with the perti- 
nent 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 Secticm 10 thereof. 

(c) The Code euipcwers the Code Authority to present the afore- 
said modification on behalf of the Industry as a whole. 

(d) The modification aud the Code as modified are not designed 
to and Avill 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 
operate to discriminate against them. 

(f) Those engaged in other ste])s 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, 

A dministrator. 
August 3, 1934. 

(308) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE CONSTRUCTION INDUSTRY 

Modify Article IV A, Section 2 by deleting subsection (f) and 
substituting in lieu thereof the following: 

(f) It shall administer this Code in any branch of the industry 
for which no Divisional Code Authority shall have been established ; 
and, if in its opinion the policies of the Act require, it may recom- 
mend to the Administrator that an additional chapter of this Code 
be established for any such Division of the industry. 

Approved Code No. 244 — Amendment No. 4. 
Registry No. 1616-2-31. 

(309) 



Approved Code No. 161 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FUR DRESSING AND FUR DYEING INDUSTRY 

As Approved on August 3, 1934 



ORDER 



Approving Modification of Code of Fair Competition for the 
Fur Dressing and Fur Dyeing 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 modification 
to the Code of Fair Competition for the Fur Dressing and Fur Dye- 
ing Industry, and opportunity to be heard having been afforded all 
members of said industry, and the annexed report on said modifica- 
tions, containing findings with respect thereto, having been made and 
QirGCtGu. to tlif* I^rGsidpnt * 

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 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, 

August 3, 1934. 

(311) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Siu: This is a report on the modification to the Code of Fair Com- 
petition for the Fur Dressing and Fur Dying Industry-, whicli has 
been submitted in accordance with Executive Order No. 6678. 

This modification enables the Code Authority to incur such reason- 
able obligations as are necessary to support the administration of 
the code and to maintain the standards of fair competition established 
by this code. It also enables the Code Authority to submit an item- 
ized budget, and an equitable basis upon which the funds necessary 
to support such budget shall be contributed by the members of 
the industry. Such contributions are made mandatory by this 
modification. 

The Deputy Administrator in his final report to me on said mod- 
ification of said code having found as herein set forth and on the 
basis of all prtx'eedings 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 wel- 
fare 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 otherwise rehabili- 
tating industry. 

(b) The code as modified complies in all respects with the perti- 
nent provision of said Title of said Act, including without limitation 
sub-section (a) of Section 3, sub-section (a) of Section 7 and sub- 
section (b) of Section 10 thereof. 

(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. 

(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. 

(312) 



313 

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

For these reasons this modification has been approved. 
Respectfully, 

Hugh S. Johnson, 

Ad7ninistrator. 
August 3, 1934. 



80835—34 15 



MODIFICATION TO CODE OF FAIR COMPETITION FOR 
THE FUR DRESSING AND FUR DYEING INDUSTRY 

The following shall be substituted for Sub-section (b) of Section 
8, Article VI, of the Code of Fair Competition for the Fur Dressing 
and Fur Dyeing Industry. 

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 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 
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 Admmistrator. 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 expense 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 
expense of its administration as hereinabove provided (unless duly 
excepted from making such contribution) shall be entitled to partici- 
pate in the selection of the members of the Code Authority Board^ 
or to receive the benefits of its activities or to make use of any 
registry number or emblem or insignia of the National Recovery 
Administration issued pursuant to the provisions of this code. Such 
registry number, emblem or insignia of the National Recovery 
Administration may be withheld, removed or revoked only in 
accordance Avith the rules and regulations promulgated from time 
to time by the Administrator. 

3. The Code Authority shall neitlier incur nor pay any obligation 
substantially in excess of the amount thereof as estimated in its 
approved budget ; and shall in no event exceed the total amount con- 
tained in the approved budget except upon approval of the Adminis- 

(314) 



315 

trator; 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 apiDroved. 

Approved Code No. 161 — Amendment No. 4. 
Registry No. 911-28. 



Approved Code No. 329 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

UPHOLSTERY SPRING AND ACCESSORIES 
MANUFACTURING INDUSTRY 

As Approved on August 4, 1934 



ORDER 



Approving Modification of Code of Fair Competition for the 
Upholstery Spring and Accessories 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 
to a Code of Fair Competition for the Upholstery Spring and Ac- 
cessories Manufacturing Industry, and as contained in a Published 
Notice of Opportunity to be Heard, Administrative Order No. 329-7, 
dated July 9, 1934, and no objections having been filed as provided in 
said Published Notice, and the annexed report on said modification 
containing findings with respect thereto having been made and 
QirGctcQ to tllB PrGSlClGritj * 

NOW, therefore', on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order 6543-A, dated December 30, 1933, 
and otherwise, do hereby incorporate by reference said annexed report 
and do find that said modification ancl 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 modi- 
fied, such approval and such modification 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, 
Admiinistrator for Industrial Recovery. 

Approval recommended : 
C. E. Adams, 
Division Administrator. 
Washington, D.C, 

August 4, 1934. 

(317) 



EEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : A proposed modification to the Code of Fair Competition f or 
the Upholstery Spring and Accessories ^Manufacturing Industry was 
submitted to the Xational Recovery Administration on May 19,'^1934, 
by the Upholstery Spring and Accessories Manufacturers' Associa- 
tion. Inc.. in accordance with Article XIII of said Code approved on 
March 10. 1934. 

This modification of the Code was submitted. to the Legal Division 
and at their suggestion the modification was revised and resubmitted 
on June 7, 1934, in its present form for approval. 

Xotice of Opportunity to be Heard prior to July 21, 1934, was 
published on July 9. 1934. Xo requests for hearing were filed. 

This modification of the Code provides for the submission of a 
Budget and equitable Basis of Assessment and the collection of such 
assessment to cover the expenses of Code administration. 

The Deputy Administrator in his final report to me on said modifi- 
cation of said Code having found as herein set forth aiirl 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 
Xational Industrial Act, including the removal of obstructions to 
the free flow of interstate and foreign commerce which tend to dimin- 
ish the amount thereof, and will provide for the general welfare 
by promoting the organization of Industry for the purpose of coop- 
erative 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 temporarih^ required), by increasing 
the consumption of industrial and agi'icultural products through 
increasing purchasing poAver, 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 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 Upholstery Spring and Accessories Manufacturers' Asso- 
ciation, Inc., was and is an industrial association, truly representative 
of the aforesaid Industiy and said Association imposed and imposes 
no inequitable restrictions on admission to membership therein and 
has applied for this modification. 

(318) 



319 

(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 
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 the modification 
of the Upholstery Spring and Accessories Manufacturing Industry- 
Code. 

Eespectfully, 

Hugh S. Johnson, 

Administrator. 
August 4, 1934. 



MODIFICATION TO CODE OF FAIR COMPETITION FOR 
THE UPHOLSTERY SPRING AND ACCESSORIES MAN- 
UFACTURING INDUSTRY 

Article Til, Section 4, is hereby deleted. 

Article YII^ Section 5, is hereby- redesignated as Article VII, Sec- 
tion 4. 

Article VII, Section 6, is hereby redesignated as Article VII, Sec- 
tion 5, and sub-paragraph (i) is modified to read as follows: 

Section 5, sub-paragraph (i). 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 effect- 
uate 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 secure 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 ; 

(4) 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. 

(5) The Code Authority shall neither incur nor pay any obliga- 
tion in excess of the amount thereof as estimated in its approval 
budget, except upon approval of the Administrator; and no sub- 
sequent budget shall contain any deficiency item for expenditures 
in excess of prior budget estimates except those which the Adminis- 
trator shall have so approved. 

Article VII, Section 7, is hereby redesignated as Article VII,. 
Section 6. 

Approved Code No. 329 — Amendment No. 1. 
Registry No. 1154-01. 

(320) 



SUPPLEMENTS 



Approved Code No. 201 — Supplement No. 14 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

WOOLENS AND TRIMMINGS DISTRIBUTING 

TRADE 

As Approved on July 23, 1934 



ORDER 



SUPPLEMEXTAL CoDE OF FaIR Co:MPETITIOX FOR THE WoOLENS AND 

Trimmings Distributing Trade 

A DIVISION OF the "WHOLESALING OR DISTRIBUTING TRADE 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Supple- 
mental Code of Fair Competition for the Woolens and Trimmings 
Distributing Trade to the Code of Fair Competition for the Whole- 
saling or Distributing Trade, 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 
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 Supplemental Code complies 
in all respects with the pertinent provisions and wnll 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; provided, however, that the provisions of Article IV, 
Section 3 be and they hereby are stayed pending my further order. 

Hugh S. Johnson, 
Administrator for Industrial Recovei^. 

Approval recommended : 
Robert L. Houston, 

Division Administrator. 

Washington. D.C, 

July 23. 1934. 

(321) 



REPOET TO THE PRESIDENT 

The President. 

The White House. 
Sir : This is a report of the Hearing on the Supplemental Code of 
Fair Competition of the "Woolens and Trimmings Distributing 
Trade, conducted in the Green Room of the Raleigh Hotel on May 
8. 1934, The Supplemental Code, which is attached, was presented 
by duly qualified and authorized representatives of the Trade, com- 
plying with the statutory requirements. 

THE TRADE 

According to the census of "\'\niolesale Distribution for the year 
1929, there Avere 136 establishments distributing tailors' trimmings 
and supplies, and employing 585 persons Avith annual net sales of 
$11,327,000. However, this figure does not include the further break- 
down by the census of Wholesale Distribution under woolens and 
worsteds. Under this heading for 1929 there were 327 establish- 
ments employing 2.548 people with annual net sales of $95,459,000. 
The figures submitted hj the Trade state that there are 225 con- 
cerns emploving 2.500 persons vrith ago-regate annual sales of 
$40,000,000. 'It is believed that the Trade'sligures represent a fairly 
true picture of the Trade as could be included under the definition of 
this Supplemental Code. 

PROVISIONS OF THE CODE 

The provisions containing supplemental definitions are considered 
inclusive and accurate. 

The Administrative provisions supplementing the General Code 
establish a Divisional Code Authority which is fairly and adequately 
re])resentative of all the different elements in the Trade. 

The Trade Practice supplemental provisions are not considered in 
any way objectionable. 

FIXDIXGS 

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 
policies and purposes of Title I of the National Industrial Recovery 
Act, including removal of obstructions to the free flow of inter- 
state and foreign commerce which tend to diminish the amount 
thereof, and will provide for the general welfare by promoting the 
organization of industry for the purpose of cooperative action 

(322) 



323 

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 pro- 
moting the fullest possible use of the present productive capacity of 
industries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

(b) Said Trade normally employs not more than 50,000 employees 
and it 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 a trade association truly representative of 
the aforesaid Trade; and that said association imposes no inequi- 
table 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 elim- 
inate or oppress small enterprises and will not operate to discrim- 
inate against them. 

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

For these reasons, the Supplemental Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
July 23, 1934. 



SUPPLEMEXTARY CODE OF FAIR COMPETITION FOR 
THE WOOLEXS AXD TRIMMINGS DISTRIBUTING 
TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, this Supplemental Code is established as a Code of Fair 
Competition for the "Woolens and Trimmings Distributing Trade 
pursuant to Article VI, Section 1 (c) of the Code of Fair Competi- 
tion for the Wholesaling or Distributing Trade, approved by the 
President of the United States on January 12, 1934. All provisions 
of the said General Code which are not in conflict with the provi- 
sions of this Supplemental Code are hereby specifically incorporated 
by reference in this Supplemental Code and made part hereof. Such 
provisions of the General Code together with the provisions of this 
Supplemental Code are the standards of fair competition for and 
are binding upon every member of said AVoolens and Trimmings 
Distributing Trade. 

Article II — Definitions 

supplementing article II or the general code 

Section 1. Wholesaler or Distributor. — The term " Wholesaler " 
or " Distributor " as used herein, shall be defined to mean any in- 
dividual, partnership, association, corporation, or other form of 
enterprise or definiteh^ organized division thereof organized for the 
specific purpose of rendering a general distribution service, engaged 
in the selling of Woolens and Trimmings to Merchant Tailors 
through the use of salesmen, advertising, catalogues, and/or other 
sales promotion devices. 

Section 2. The Trade. — The term " the Trade " as used herein, 
shall be defined to mean the business in which Wholesalers or Dis- 
tributors as above defined, are engaged. 

Section 3. Divisional Code Authority. — The term " Divisional 
Code Authority ". as used herein, shall be defined to mean the Divi- 
sional Code Authority for the Woolens and Trimmings Distributing 
Trade, a Division of the Wholesaling or Distributing Trade. 

Section 4. General Code. — The term " General Code ", as used 
herein, shall be defined to mean the Code of Fair Competition for 
the Wholesaling or Distributing Trade. 

Section 5. Woolens and Trimmings. — The term " Woolens and 
Trimmings " as used herein, shall be defined to include all types of 
woolens and tailors trimmings and expendable supplies, customarily 
used by Merchant Tailors. 

(324) 



325 

Section 6. Merchant TaAlors. — The term " Merchant Tailors " as 
used herem, includes Merchant Tailors, Custom Tailors, Tailoring 
Departments of retail or department stores and any retail establish- 
ment where clothes are made or sold to the individual measurement. 

Section 7. Season. — The " Spring Season " as used herein, is de- 
fined as commencing January 1, and expiring June 30th; and the 
" Fall Season " is defined as commencing July 1 and expiring 
December 31st. 

Article III — Administration 

SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE 

Section 1. (a) The Divisional Code Authority shall consist of 
seven (7) members from among the Trade or representatives thereof, 
five (5) to be selected by the Board of Directors of the National 
Woolens & Trimmings Association; one (1) to be selected by the 
Pacific Coast Woolens & Trimmings Association and one (1) to be 
selected by the Administrator, to represent those members of the 
Trade who are not members of either Association. 

(b) The terms of office of members of the Divisional Code Au- 
thority and the method of electing their successors, either for full 
new terms or for unexpired terms, shall be established in the Bj'-Laws 
of the Divisional Code Authority. 

Section 2. Subject to such rules and regulations as may be pre- 
scribed by the Administrator, the Divisional Code Authority shall 
have the following duties and powers in addition to those prescribed 
in the General Code : 

(a) To appoint a Trade Practice Committee which shall meet 
with the Trade Practice Committees appointed under such other 
Codes of Fair Competition as may be related to the Trade, except 
other Supplemental Codes to the General Code, for the purpose of 
formulating fair trade practices to govern the relationship between 
production and distribution employers under this Supplemental Code 
and under such others to the end that such fair trade practices may 
be proposed to the Administrator as an amendment to this Supple- 
mental Code and such other Codes of Fair Competition. 

(b) To organize, elect officers, hire emploj^ees, and perform such 
other acts as may be necessary for the purposes of administration of 
this Supplemental Code. 

(c) To adopt By-Laws and rules and regulations for its procedure. 

(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 Divisional 
Code Authority of its duties or responsibilities under this Supple- 
mental Code and that such Trade Associations and Agencies shall 
at all times be subject to and comph' with the provisions hereof. 

(e) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provisions 
to govern members of the Trade in their relations with each other or 
with other trades, measures for industrial planning, and stabiliza- 
tion of employment; and including modifications of this Supple- 
mental Code which shall become effective as part hereof upon ap- 



326 

proval by the Administrator after such notice and hearing as he may 
specify. 

(f) To obtain from members of the Trade such information and 
reports as are required for the administration of the Supplemental 
Code. In addition to information required to be submitted to the 
General Code Authority and to the Divisional Code Authority mem- 
bers of the Trade subject to this Supplemental Code shall furnish 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act, to such 
federal and state agencies as he may designate ; provided that noth- 
ing in this Supplemental Code shall relieve any member of the Trade 
of any existing obligations to furnish reports to any governmental 
agency. Xo individual report shall be disclosed to any other member 
of the Trade including Members of the Divisional Code Authority or 
any other party except to such other governmental agencies as may 
be directed by the Administrator, Xo such data or information 
shall be published, except in combination with similar data, and in 
such manner as to avoid the disclosure of confidential information. 

Section 3. It being found necessary in order to support the Ad- 
ministration of this Supplemental Code and to maintain the stand- 
ards of fair competition established hereunder and to effectuate the 
policy of the Act, the Divisional 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 
Trade; 

(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 Trade, and 
to that end, if necessary, to institute legal proceedings therefor in its 
own name. 

Section 4. Each member of the Trade shall pay his or its equita- 
ble contribution to the expenses of the maintenance of the Divisional 
Code Authority, determined as hereinabove provided, and subject 
to rules and regulations pertaining thereto issued by -the Adminis- 
trator. Only members of the Trade compl3dng 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 Divisional Code Authority or to receive the benefits of any 
of its voluntary activities or to make use of any emblem or insignia 
of the Xational Recovery Administration. 

Section 5. The Divisional 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 expendi- 
tures in excess of prior budget estimates except those which the 
Administrator shall have so approved. 



327 

Section 6. Nothing contained in this Supplemental Code shall con- 
stitute the members of the Divisional Code Authority partners for 
any purpose nor shall any member of the Divisional Code Authority 
be liable in any manner to anyone for any act of any other member, 
officer, agent, or employee of the Divisional Code Authority. Nor 
shall any member of the Divisional Code Authority exercising rea- 
sonable diligence in the conduct of his duties hereunder be liable to 
an^^one for any action or omission to act under this Supplemental 
Code except for his OAvn wilful misfeasance or non-feasance. 

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

Section 8. In order to assist in making effective the reports from 
the Trade and in eliminating unfair competition, the Divisional 
Code Authority shall, within one month after the effective date of 
the Supplemental Code, appoint a committee so constituted as to 
give producer, consumer, and governmental representation, to make 
a study with a view to the establishment of classifications and stand- 
ards of quality of products of the Trade, wherever such standards 
are deemed feasible. The findings and recommendations of this 
committee shall, within six months, be submitted to the Adminis- 
trator, and after such hearings and investigations as he may desig- 
nate, and upon approval b}^ him, shall be made a part of this Supple- 
mental Code and be binding upon every member of the Trade. 

Article IV — Trade Practices 

supplementing article VII or the general code 

Section 1. The following maximum terms, discounts and datings 
shall prevail and any violation thereof shall be deemed a violation 
of this Supplemental Code : 

(a) Maximum terms and cash discounts shall be five per cent 
(5%), ten (10) days; three per cent (3%), forty (40) days; net, 
sixty (60) da3^s. 

(b) An Order, for woolens of less than thirty (30) yards, and/or 
an order for trimmings, the total purchase price of which is less 
than Seventy-five Dollars ($75.00), shipped prior to the twenty- 
fifth (25) day of any month, may be dated as of the first day of 
the following month. 

(c) An Order, for woolens of less than thirty (30) yards, and/or 
an order for trimmings, the total purchase price of which, is less 
than Seventy-five Dollars ($75.00), shipped on or after the twenty- 
fifth (25) day of any month, may be dated as of the first day of 
the second month following. 

(d) In addition to the dating provided for in paragraphs (b), 
and (c) , a Stock Order, for woolens of not less than thirty (30) yards 

80835—34 16 



and/or a Stock Order for trimmings the total purchase price of 
which is not less than Seventy-live Dollars ($75.0U) shipped at one 
time after March 1st, for the Spring Season and after September 
1st for the Fall Season, may carry an additional thirt}^ (30) days' 
dating. 

(e) An Advance Order for woolens of not less than thirty (30) 
yards, and/or an Advance Order for trimmings, the total pur- 
chase price of which is not less than Seventy-Five Dollars ($75.00) 
placed at one time and providing for one specified date of delivery, 
may be dated April 1st for the Spring season for good^ shipped on 
or after Januar}' 1st of such season and October 1st for the Fall 
season, for goods shipped on or after July 1st of such season. 

(f) Members of the Trade shall charge interest on all past 
due accounts at the rate of 6% per annum, unless the legal rate 
be lower, in which case such lower rate shall prevail. Interest shall 
be computed from maturitj^ or from the 30th day after maturity. 

(g) The rate allovved for Anticipation shall not be in excess of 
six per cent (6%) per annum. 

(h) The deduction of a cash discount is not allowable when pay- 
inent is made by Note or Trade Acceptance. 

Section 2. There shall be no discrimination in the price of woolens 
and trimmings to Merchant Tailors. Goods shall be quoted or 
priced on a net basis and no discounts shall be allowed therefrom 
except discounts for cash payment provided for in paragraph (a) 
Section 1 of this Article. 

Provided, however, that nothing in this Section shall be construed 
to prevent reasonable and fair price differentials from being allowed 
on the basis of quantity purchased and/or shipped and/or billed at 
one time to a single buyer or on the basis of such other factors as the 
Administrator shall deem proper. 

Section 3. It shall be an unfair trade practice for any Whole- 
saler to sell or offer to sell woolens and/or trinnnings at such prices 
or upon such terms or conditions of sale that the buyer will pay 
less therefor than said Wholesaler's individual cost. Such cost 
shall include the actual net invoice cost of the woolens or trimmings 
to the Wholesaler plus transportation cost to the Wholesaler's ware- 
house. Such cost shall further include actual wages for store labor 
or labor involved in direct handling when determined in accordance 
with an accounting formula to be determined by the Divisional Code 
Authority and approved by the Administrator. Nothing herein con- 
tained shall be construed to permit the Divisional Code Authority, 
any agent thereof, or any member of the Trade to suggest uniform 
additions, percentages or differentials or other uniform items of cost 
which are designed to bring about arbitrary uniformity of costs or 
prices. 

Nothing contained in the above paragraph shall be interpreted to 
prevent the sale below cost at prices necessary for their disposal of 
discontinued lines from previous selling seasons, surplus merchan- 
dise accumulated from previous selling seasons, or damaged mer- 
chandise, or forced liquidation of current stocks clue to financial em- 
barrassment, provided that in such cases of forced liquidation the 
approval of the Divisional Code Authority, subject to the disap- 
proval of the Administrator, must be secured before such sale may 



329 

be made, and the member of the Trade shall certify that he is acting 
in good faith.^ 

Section 4. No goods shall be delivered on consignment except 
where the Divisional Code Authority may allow under circumstances 
to be denned by it. Goods shall not be delivered on a sale or return 
basis nor shall goods be delivered upon memorandum or for display 
or otherwise for the purpose of evading the terms of this provision. 
Nothing in this section shall be construed to prohibit the delivery 
of samples not exceeding sixty-five (65) square inches in size. 

Section 5. (a) All woolen lengths based on a fifty-six inch (56") 
width or over, on double width six-quarters (6/4) goods and on a 
twenty-eight inch (28") width or over on single width three-quar- 
ters {%) goods, must be measured not to exceed thirty-seven inches 
(37") to the yard. All linings shall be measured not to exceed 
thirty-six inches (36") to the yard. 

(b) No claim may be allowed for short measure for anj' lengih 
delivered measin-ing thirty-six inches (36") to the yard before being- 
shrunk. 

(c) No allowances for short measure shall be made after the goods 
are cut by the purchaser. 

Section 6. Nothing contained in this Supplemental Code shall be 
construed as preventing the establishment of higher prices for pur- 
chases from samples than for purchases for stock. 

Section 7. It shall be an unfair trade practice for members of 
the Trade to give special personal use discounts, lower prices, gratui- 
ties, or other merchandise to any Merchant Tailor, or any employee 
of any Merchant Tailor. 

Article V — jModification 

This Supplemental 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. 

Article VI — Effecti\'e Date 

This Supplemental Code shall become effective on the 10th day 
after its approval by the Administrator. 

Approved Code No. 201 — Supplement No. 14. 
Registry No. 286-02. 



^ Stayed — See paragraph 2 of order approving this Code. 



Approved Code No. 244 — Supplement No. 19 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

HEATING, PIPING, AND AIR CONDITIONING 
CONTRACTORS' INDUSTRY 

As Approved on July 25, 1934 



ORDER 



SUPPLEMEXTARY CoDE OF FaIR CoMPETITTOX FOR THE HeATIXG, 

Piping, and Air Conditioning Contractor's Industry 
a division of the construction industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National In- 
dustrial Recovery Act, approved June 16. 1933, and pursuant to and 
in full compliance with the provisions of Section 5 of Article VIII 
of Chapter I of the Code of Fair Competition for the Construction 
Industry, approved January 31, 1934, for approval of Chapter XVI 
of said Code, which Chapter XVI is applicable to the Heating, 
Piping and Air Conditioning Contractors' Division of the Con- 
struction Industry, and hearings having been held thereon and the 
annexed report on said Code, containing findings with respect thereto, 
having been made and directed to the President: 

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 Chapter complies in all re- 
spects with the pertinent provisions and will promote the policy and 
purposes of said Title of said Act; and do hereby order that said 
Chapter XVI be and it is hereby approved and that the previous 
approval of said Code of Fair "Competition for the Construction 
Industry is hereby modified to include an approval of said Code in 
its entirety as supplemented by said Chapter XVI; 

Provided^ however^ 

(1) That with reference to the provisions of Section 1 of Article 
II, the approval herein given is on condition that the Administrator 
may review or reconsider the provisions of said section at any time 
within a period of one hundred and eighty (180) days from the 

(331) 



OOf) 



effectiA'e date of this Chapter, and. upon the basis of such reports, 
studies or hearings as he may obtain or conduct, may require such 
modification of, or make such determination ^^ith respect to, the pro- 
visions of this section as he shall by his further order direct; and 
provided further, that if it shall be represented to the Administrator 
and he shall determine that the provisions of this section impose un- 
due hardship upon employers or employees or both, -within any region 
or locality, he may at any time grant such stay of or exemption 
from the provisions of this section within such region or locality 
as he may determine is necessary to effectuate the policy declared 
by Title I of the National Industrial Recover}'^ Act; 

(2) That ■with reference to the provisions of Article I, relating 
to the definition, the approval herein given is on condition that 
the provisions of this Article be reviewed or reconsidered upon due 
notice and public hearing within a period of sixty (GO) days after 
the effective date of this Chapter and upon the basis of such hearing 
and for the purpose of elimination of duplication of administrative 
facilities or operations or jurisdiction, the Administrator may re- 
Cjuire such modification of or make such other determination with 
respect to the provisions of this Article or his approval of this 
Code as he shall by his further order direct; and. provided further, 
that if it shall be represented to the Administrator and he shall 
determine that the provisions of this Article impose undue hard- 
ship upon any member of the industry within any region or locality 
or to any class of members of the industry he may at any time grant 
such stay of or exemption from this Code as he mRj determine is 
necessary to effectuate the policy declared by Title I of the National 
Industrial Recovery Act; 

(3) That with reference to the provisions of paragraph (d), 
Article TV. the approval herein given is on condition that the Ad- 
ministrator may review or reconsider the provisions of said para- 
graph within a period of ninety (90) days after the effective date of 
this Chapter, and upon the basis of such reports, studies or hearing 
as he may obtain or conduct, may require such modification of, or 
make such other determination with respect to, the provisions of 
this paragraph as he shall by his further order direct; and, provided 
further, that the Divisional Code Authority for said Chapter shall 
cause a survey to be made with reference to the provisions of said 
paragraph and shall furnish statistics and other information per- 
taining thereto, and such other information as may be required by 
the Administrator, to the Administrator within ninety (90) days 
after the effective date of said Chapter, and that on the basis of such 
information or otherwise, the Administrator may thereupon order 
the approval, modification or deletion of said paragraph as afore- 
said. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry. 

Division A dministrator. 

Washington. D.C, 

July 26, 193^. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the Heating, Piping and Air Condition- 
ing Contractors Chapter of the Code of Fair Competition for the 
Construction Industry which is described as Chapter I and which 
was approved by you on January 31, 1934. 

This Chapter is a revision after a public hearing conducted in 
Washington, D.C. on September 11, 1933, and reconvened hearings 
conducted in Washington, D.C. on April 12 and April 26, 1934, in 
accordance with the provisions of the National Industrial Recovery 
Act. This Chapter amplifies Chapter I and is designated Chapter 
XVI. It applies specitically to the Heating, Piping and Air Con- 
ditioning Contractors Division of the Construction Industry. 

PROVISIONS FOR HOURS AND WAGES 

In addition to the hour and wage provisions of Chapter I of 
the Construction Industry Code, as approved by you on January 
31, 1934, this Chapter XVI provides a minimum wage of not less 
than $1.20 per hour for journeymen steamfitters in the Northern 
Zone, as defined in this Chapter; not less than $1.10 per hour in the 
Central Zone, as defined in this Chapter ; not less than $1.00 per hour 
in the Southern Zone, as defined in this Chapter; and in all zones, 
as defined in this Chapter, that not less than $12.00 per week shall 
be paid apprentices. The wage scale provided by this Chapter for 
journeymen steamfitters is identical, both as to zones and as to wages 
for skilled workers, with the corresponding provisions of the Plumb- 
ing Contracting Division of the Construction Industry Code, ap- 
proved b}^ you May 15, 1934. 

ECONOMIC EFFECT OF THE CODE 

According to the statistical analysis of the Division of Research 
and Planning, the total volume of work in this Division of the Con- 
struction Industry in 1929 amounted to approximately $500,000,000. 
In 1932 this volume of work had dropped to about $196,000,000. Ac- 
cording to the information supplied by the sponsors of this Chapter, 
the aggregate volume of business in 1933 amounted to $73,179,000. 
In 1929, according to the statistical analysis of the Division of Re- 
search and Planning, this Division of the Construction Industry 
employed 84.500 workers; in 1933, 31,900 workers. 

It is reasonable to suppose that with the establishment of higher 
uniform rates of pay, the limitation of the hours of work, and the 
prohibition of unfair trade practices, both employers and employees 
in this Industry will be materially benefited without detriment to the 
consumer. 

(333) 



334 

FINDINGS 

The Deputy Administrator in his final report to me on said Heat- 
ing. Piping and Air Conditioning Contractors Cliapter of the Code 
of Fair Competition for the Construction Industry, having found as 
herein set forth and on the basis of all the proceedings in this matter ; 

I lind that : 

(a) Said Heating, Piping and Air Conditioning Contractors 
Chapter and said Code of Fair Competition for the Construction In- 
dustry, as supplemented by said Heating, Piping and Air Condition- 
ing Contractors (^hapter, are well designed to promote the policies 
and purposes of Title I of the National Industrial Recovery Act, in- 
cluding removal of obstructions to the free flow of interstate and for- 
eign commerce which tend to diminish the amount thereof and will 
provide for the general welfare by promoting the organization of 
industrv 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 superA'ision, by 
eliminating imfair competitive practices, by promoting the fullest 
possible utilization of the persent productive capacity of ndustres, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agrcultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of labor, 
and by otherwise rehabilitating industry. 

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

(c) Said Heating. Piping and Air Conditioning Contractors Chap- 
ter and the Code of Fair Competition for the Construction Industry, 
as supplemented by said Heating, Piping and Air Conditioning Con- 
tractors Chapter, as approved comply in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant associa- 
tion is an industrial association truly representative of the aforesaid 
Industry; and that said Association imposes no inequitable restric- 
tions on admission to membership therein. 

(d) Said Heating, Piping and Air Conditioning Contractors 
Chapter and the Code of Fair Competition for the Construction In- 
dustry, as supplemented by said Heating, Piping and Air Condition- 
ing Contractors Chapter are not designed to and will not permit 
monopolies or monopolistic practices. 

(e) Said Heating, Piping and Air Conditioning Contractors 
Chapter and the Code of Fair Competition for the Construction In- 
dustry, as supplemented by said Heating, Piping and Air Condi- 
tioning Contractors Chapter, are 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 am)roval of said 
Heating, Piping and Air Conditioning Contractors Chapter and of 
said Code, as supplemented by this Heating, Piping and Air Condi- 
tioning Contractors Chapter thereof. 



335 

For these reasons, therefore, I have approved said Heating, Piping 
and Air Conditioning Contractors Chapter of the Code of Fair Com- 
petition of the Construction Industry. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
July 25, 1934. 



Chapter XVI 

SUPPLEMEXTARY CODE OF FAIR COMPETITIOX FOR 
THE HEATIXG. PIPING, AXD AIR COXDITIOXIXG COX- 
TRACTORS' DIVISION OF THE CONSTRUCTION IN- 
DUSTRY 

Article I — Definitions^ 

Section 1. (a) The term " Heatino;, Piping, and Air Conditioning 
Contractors Division ", or " this division ", as used herein shall in- 
clude the furnishing and installing of systems, or parts thereof, for 
steam and hot water heating, ventilating, refrigeration, air condi- 
tioning, power piping, industrial process piping, sprinkler piping, 
temperature control piping, high and Ioav pressure boilers, stokers, 
oil burning units, pneumatic jiiping, hydraulic power piping, and all 
apparatus, appurtenances and piping systems in connection there- 
with, regardless of whether sucli piping conveys steam, water, air, 
brine, ammonia, oil or other fluids or other commercial products, or 
l^roducts in course of manufacture; and 

(b) pipe covering and painting when required bv. and included in, 
the contract for any of the services or operations described in para- 
gra]:)li (a) of this section, and not performed under sub-contract let 
by a member of this division; and 

(c) sheet metal work when required by. and included in, the con- 
tract for any of the services or operations described in paragraph 
(a) of this section, and not performed under a sub-contract let by 
a member of this division; provided, however, that the work de- 
scribed in this paragraph shall be performed under conditions no 
less stringent than prescribed in any Chapter of this code relating 
to Roofing and Sheet Metal Contractors, and provided further that 
no bids for such work shall be submitted under such Chapter or any 
assessment be charged thereunder against members of the Heating, 
Piping, and Air Conditioning Contractors Division. 

(d) such branches or subdivisions of the services or operations 
included in paragraphs (a), (b) and (c) of this section as may from 
time to time be included under the provisions of this Chapter. 

(e) the provisions of this Chapter shall not apply to any of the 
operations above mentioned when performed ])y a manufacturer on 
his own premises and by his own employees and not for compensa- 
tion or hire but for such manufacturer's own use within the scope of 
such manufacturer's industry, as defined in the approved code of 
such industr}^, provided, however, that such operations are confined 
to repair and maintenance items chargeable to operating expenses 
and to minor items of replacement chargeable to capital expendi- 
tures. Nor shall the provisions of this Chapter 'apply to the super- 

' S. e paragraph 2 (2) of order approving tliis Code. 

(336) 



vision by supervisors and specially trained technicians at tlie site in 
connection with the installation of a manufacturer's product, pro- 
vided such services are required to safeguard the manufacturer's re- 
sponsibility for the performance of such product. 

Section's. The words " sprinkler piping •' as used in this Article 
shall be construed as not including the installation of automatic 
sprinkler equipment for fire protection purposes, as such installations 
are under the jurisdiction of the Automatic Sprinkler Code. 

Sectiion 3. Home-owners and householders, including farmers, 
shall not be deemed to be included within the definition contained in 
Section 1 in their performance individually or by their permanent 
servants or other help of like character on their home premises of 
any services described in such definition : nor shall any such person, 
orany building owner or tenant, performing such services by his 
permanent employees and not for hire on or in buildings or structures 
owned or occupied by him, be deemed to be included in such 
definition. 

The terms " permanent employees " and '' permanent servants " as 
used in this section mean and include any employee or servant who 
is given regular and continuous employment for a period of not less 
than six (6) months. 

Section 4. The term '* combination bid " is herein defined as any 
bid including any work within this division, together with work not 
within this division. 

Section o. The term "Association " as used herein shall mean the 
Heating, Piping and Air Conditioning Contractors National Asso- 
ciation. 

Section 6. The term "journeyman steamfitter " is herein defined 
to mean any employee qualified by examination who has served at 
least five years as a learner in the steamfitting trade (either as an 
apprentice or helper). 

Section 7. The term " apprentice "' is herein defined as a learner 
of the steamfitting trade who is undergoing a definite course of train- 
ing, which when completed will make him a journeyman steamfitter. 

Article II — Hours. Wages and Conditions or Eimflgymiint 

Section 1. (a) In the Northern Zone, no journeyman steamfitter 
shall be paid less than $1.20 per hour; in the Central Zone, no jour- 
neyman steamfitter shall be paid less than $1.10 per hour: in tlie 
Southern Zone, no journeyman steamfitter shall be paid less than 
$1.00 per hour, and in all zones, no apprentice shall be paid less than 
$12.00 per week. 

(b) The Northern Zone shall consist of: Maine, New Hampshire, 
Vermont, INIassachusetts, Rhode Island, Connecticut, New York, 
New Jersey, Indiana, Wisconsin, ]Minnesota, Nebraska, Wyoming, 
Oregon, South Dakota, Idaho. Pennsylvania. Ohio, Michigan, Illi- 
nois. Iowa, North Dakota, Montana and Washington. 

(c) The Southern Zone shall consist of: South Carolina, Geor- 
gia, Florida, Arkansas, Alabama, Mississippi, Louisiana, Arizona, 
Oklahoma, Texas and New JSIexico. 

(d) The Central Zone shall consist of: Delaware, Maryland, Vir- 
ginia, Tennessee, Colorado, Utah, California, North Carolina, West 



Virginia. Kentucky. Missouri. Kansas, Nevada and District of 
Columbia. - 

Section '2. Watchmen shall not be permitted to Avork more than 
fifty-six (oG) hours per ■week. 

Section 3. Employees engaged in professional, executive, or super- 
visory Avork are exempt from the provisions relating to hours and 
wages of Chapter I and of this Chapter onh^ when receiving over 
thirty-five dollars ($35.00) per week. 

Section 4. Xo employee shall be paid at a lower rate of wages 
than provided in Chapter I of this Code. 

Section 5. (a) All wages due shall be payable Aveekly in lawful 
currency or by negotiable check. These Avages shall be exempt from 
any payment for pensions, insurance or sick benefits other than those 
voluntarily paid by employees. EmploA'ers or their agents shall not 
accept, directly or indirectly, rebates on such w^ages or give anything 
of value nor extend any favors to any person for the purpose of 
influencing rates of wages or Av'orking conditions of their employees. 

The provisions of this section regarding payment of wages at the 
end of each weekly period shall not apply to persons employed in a 
managerial or executive capacity who earn not less than thirty-five 
dollars ($35.00) per week, nor to persons employed in clerical or 
office Avork. who shall be paid at the end of pay periods not to exceed 
monthly periods. 

(b) 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 Divisional Code Authority to the Administrator as 
soon as practicable after the effectiA'e date of this Code. 

Section 6. No member of this Division shall directly or indirectly 
sublet (whether by the practice knoAvn as "lumping" of labor or 
other Avise) to any employee, other journeyman, helper or laborer, 
solely the labor services Avithin the scope of this Chapter. 

In no case shall a member of this Division avoid or evade the labor 
provisions of this Chapter by contracting his work to any person or 
persons subject to labor provisions less stringent than those provided 
in this Chapter. 

Article III — Administration 

Section 1. (a) A DiA'isional Code Authority is hereby constituted 
to administer this Code within this Division. The Divisional Code 
Authority shall consist of eleA^en (11) indiA'iduals, or such other 
number as may be approved from time to time by the Administrator. 

(b) SeA'en (7) members of the Divisional Code Authority shall 
be members or rejoresentatives of the Association, appointed by its 
Board of Directors. The four (4) remaining members shall be ini- 
tially selected on a fair basis from non-members of the Association 
within this Division by the Board of Directors, subject to review 
by the Administrator, the said non-members to serve until their suc- 
cessors shall haA'e been selected (by a method of selection satisfactory 
to and approA'ed by the Administrator), by the members of this 
Division Avho are not members of the Association. 



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



339 

(c) After said Divisional Code Authority has been duly estab- 
lished, the members thereof may, in manner and form required by 
law, incorporate in the State where the interests of said body are 
best served, provided, however, that said corporation is not organized 
for profit. 

Section 2. Review of Acts of Code Authorities.— li the Adminis- 
trator shall determine that any action of the Divisional Code Author- 
ity or any agency thereof may be unfair or unjust or contrary to the 
public interest, the Administrator may, to the extent of his power 
under the Act, require that such action be suspended to afford an 
opportunity for investigation of the merits of such action and further 
consideration by the Divisional Code Authority or agency pending 
final action which shall not be effective unless the Administrator 
approves or unless he shall fail to disapprove after thirty days' notice 
to him of intention to proceed with such action in its original or 
modified form. 

Section 3. It being found necessary, in order to support the admin- 
istration of this Chapter and to maintain the standards of fair com- 
petition established by this code and to effectuate the policies of 
the Act, the Divisional 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 this Chapter. 

(b) to submit to the Administrator for his approval within 4:hirty 
days after the effective date of this Divisional Chapter, subject to 
such notice and opportunity to be heard as he may deem necessary, 
(1) an itemized budget of the 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 this 
division. 

(c) after such budget and basis of contribution have been approved 
by the Administrator, to determine and secure equitable contributions 
as above set forth by all such members of this division, and to that 
end, if necessary, to instigate legal proceedings thereunder in its own 
name, provided, however, that a member of this division shall be 
deemed in violation of this code onl}" if he fails to pay such assess- 
ment after thirty days of the receipt of the notice of assessment. 

Section 4. Only members of the division complying with this code 
and contributing to the expenses of the administration of this Chap- 
ter as provided in Section 3 of this Article shall be entitled to partici- 
pate in the selection of the members of the Divisional Code Author- 
ity or to receive the benefits of its voluntary activities or to make use 
of any emblem or insignia of the National Recovery Administration, 
After the requirements of the Administrator have been complied 
with, non-payment by a member of this division of an equitable 
share of the costs of code administration to the Divisional Code 
Authority or to its pro^^erly authorized agency, constitutes a viola- 
tion of this code. 



340 
Article IV — Fair Trade Practice Regulations 

The followintr provisions are adopted as rules of Fair Trade 
Practice for members of this division, and any violation of said rules 
shall constitute an unfair method of competition and a violation of 
this Code : 

(a) Xo member of this Division shall induce or attempt to induce 
the breach of a contract between a competitor and his customer, 
provided that nothing in this rule shall be taken to prevent a mem- 
ber of this Division -who has quoted upon the plans and/or speci- 
fications involved from calling to the attention of the purchaser, with 
the approval of the Divisional Code Authority, even though contract 
has been made, that the plans and/or specifications upon which the 
contract has been awarded or the work as being installed do or does 
not conform in quantity or quality to the plans and/or specifications 
on which the interested member of this division has quoted. 

(b) Xo member of this Division shall advertise, name, mark or 
bill materials, fixtures, apparatus, or installations as to quantity or 
quality in any manner which is intended to or does mislead or 
deceive purchasers. 

(c) Xo member of this Division shall receive, pay or allow secret 
rebates, refunds, credits or unearned discounts, whether in the form 
of money or otherwise, or extend to certain purchasers confidential 
l^rices. special service, or privileges not specifically mentioned in his 
original specifications. 

(d) Xo member of this Division shall agree to furnish or sell 
labor, materials, fixtures, apparatus or installations for any job at 
less than the estimated cost thereof. In connection with this rule 
estimated cost is defined as the sum of the estimated cost of labor 
including liability and compensation insurance, and cost of material 
including freight and cartage, filing fees and any other direct expense 
applicable' to the job and an amount for overhead. The amount for 
overhead shall not be less than twelve and one-half percent (121/2 %) 
of the combined cost of labor including liability and compensation 
insurance, and the cost of material including freight and cartage. It 
shall be a defense to any charge of violation of this paragraph if the 
23arty charged shall satisfy the Administrator that his bid was not 
less than the estimated costs of any other member of the industr3\^ 

(e) Xo member of this Division shall substitute any materials, 
fixtures, apparatus or installations for the kind specified without 
written approval of the engineer or architect if any, and the 
purchaser. 

(f) Xo member of this Division shall give, permit to be given, 
or directly offer to give, anything of value for the purpose of influ- 
encing or reAvarding the action of any employee, agent or representa- 
tive of another relation to the business of the employer of such em- 
ployee, the principal of such agent or the represented part}'^, without 
the knowledge of such employer, principal or party. Commercial 
bribery })rovisions 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. 



•See paragraph 2 i 3) of order approving tliis Code. 



341 

(g) Xo member of this Division shall make or cause to be made 
or iDublished. any statement which is false or inaccurate, in any 
material particular, concerning the goods, prices, values, credit terms, 
jjolicies or services of a competitor. 

(h) No member of this Division shall accept or give securities, 
bonds, mortgages, stock, promissory notes, or other personal or real 
property, as whole or part payment for work or material, at other 
than its fair market value, to be determined in doubtful cases, by 
indeiDendent and competent appraisal. 

(i) Second hand material, obsolete or outmoded material shall be 
offered and installed only as such. 

(j) No member of this Division shall furnish plans and/or speci- 
fications for installation of work covered by this Code, for use of 
any owner or owners or his or their representative for the purpose 
of taking competitive bids, except in accordance with the provisions 
of the Construction Industry Code (in Chapter I or in an Engi- 
neering Division Chapter) which take jurisdiction over Engineering. 

(k) No member of this Division when as an individual using the 
tools of the trade shall Avork a greater number of hours or charge 
for his services a lower hourly rate than provided for in Chapter I 
or in this Chapter. 

(1) To protect the public against inadequate installations, mem- 
bers of this Division shall install all work in accordance with the 
applicable municipal or state law then existing and, Avhere not con- 
flicting therewith, in accordance with the published Engineering 
Standards of the Association, except where otherwise required by 
definitely prepared plans and written specifications furnished by the 
owner or his authorized representative. When the welding process 
is used the Avork shall be done in accordance with the Welding Stand- 
ards and Specifications of the Association. The standards of the 
Association mentioned in this paragraph shall not be binding upon 
members of the industry until approved by the Administrator. 

(m) No member of this Division shall place (for the same ma- 
terial for a specific job for which he has the contract) blanket orders 
or future delivery contracts with more than one concern when the 
total so ordered is in excess of the material estimated to be required 
for such job. Future delivery orders or contracts for specific jobs 
shall contain sufficient information to identify definitely the job for 
which the orders are placed. 

(n) No member of this Division shall be a party to the unfair 
practice of " bid peddling " or " bid shopping " as defined in Chapter 
I hereof. 

(o) In competitive bidding, the following rules shall apply: 

(o-l) No member of this Division shall submit bids to anyone not 
bound by this Code unless he expressly agrees to comply with the 
regulations governing an awarding authority provided in Article 
VII of Chapter I hereof. 

(o-2) In order to provide a check on the accuracy and fairness 
of estimates, any member of this Division bidding on any job 
amounting to two hundred and fifty dollars ($250.00) or more shall 
simultaneously with the submitting of bid or bids file copies of his 
bid or bids and all revisions thereof with an impartial depository 
designated by the Divisional Code Authority or its authorized repre- 



342 

sentative; the same to be kept sealed and confidential until twenty- 
four (24) hours after the bids are due or until after the letting of 
the contract, following which the low or successful bid only may be 
disclosed to the bidders, except that a Committee of review may have 
confidential access to the files of bid depositories. 

(0-3) In the case of combination bids, or revisions thereof, the 
bid for the work not included in this Division shall be separate and 
distinct from any bid for work within this Division, and the com- 
bination bid shall be the aggregate of said separate and distinct bids. 

(o-4) Each bid filed in accordance with paragraph (o-2) of this 
Section shall be accompanied by a fee of one dollar ($1.00). For the 
purposes of this paragraph, identical (except for name and ad- 
dress of recipient) copies of the same bid given to different parties 
for the same job shall be construed as one bid. The Divisional Code 
Authority shall use funds so received to pay the expenses of oper- 
ating bid depositories. Account of the receipts and expenditures of 
bid depositories shall be kept and the same shall be open to the 
Administrator or his representatives for inspection. 

(o-5) Upon request of any bidder a committee shall be appointed 
by the Divisional Code Authority or its authorized representative, 
which committee shall be empowered to investigate any bid to 
determine whether any provisions of this Code have been violated 
in such bid. In the event such committee shall find the rules 
of fair competition have been violated, the violations shall be re- 
ported to the Divisional Code Authority for such action as it deems 
proper in accordance with this Code, including in appropriate cases, 
with the approval of the Administrator, report to the Federal 
District Attorney or the Federal Trade Commission. 

Article V — Posting 

Copies of Chapter I and this Chapter shall be kept continuously 
posted from the time of effective date in a conspicuous place in 
the office or shop of each member of this Division. 

Article VI — Modification 

Subject to the provisions of Article IV, B, Section 2 (c), of 
Chapter I hereof, the provisions of this Chapter except as to pro- 
visions required by the Act, may be modified on the basis of ex- 
perience or changes in circumstances, such modifications to be based 
upon application to the Administrator and such notice and hearing 
as he shall specify, and to become effective on his approval. Any 
such application may be made by the Divisional Code Authority. 

Article VII — Eeference to Provisions of Chapter I 

The provisions of Sections 7 (a) and 10 (b) of the Act, which 
are set forth in Sections 1 and 6 respectively of Article VIII of 
Chapter I of this Code, are specifically incorporated herein by ref- 
erence with the same force and effect as if set forth herein in full; 
all other provisions of Cliapter I of this Code, except as herein 
provided, apply within this Division with the same force and 
effect as if set forth herein in full. 



343 

Article VIII — Effective Date 

This Code shall become effective in this Division on the fifteenth 
<(15th) day aft€r its approval by the President. 

Approved Code No. 244 — Supplement No. 16. 
Registry No. 113CM)3. 



•80835—84 17 



Approved Code No. 308 — Supplement No. 6 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

TROUT FARMING INDUSTRY, EASTERN SECTION 

As Approved on July 25, 1934 



ORDER 



Approving Supplementary Code of Fair Competition for the 
Trout Farming Industry, Eastern Section 

A division of the fishery 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 Divisional 
Code of Fair Competition for the Trout Farming Industry, Eastern 
Section, a Division of the Fishery Industry, and hearings 
having been duly held thereon and the annexed report on said code, 
containing findings with respect thereto, having been made and 
directed to the President : 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval recommended : 
Armin W, Riley, 

Division Adnimistrator. 

Washington, D.C, 

July ^.5, 1934. 

(345) 



REPORT TO THE PRESIDENT 

The President, 

The White Hotise. 
Sir: This is a report on the Divisional Code of Fair Competition 
for tlie Trout Farming Industry, Eastern Section (a Division of the 
Fishery Industr}'), as revised after Public Hearing, conducted in 
"Washington, D.C., on March 16, 1934, in accordance with the pro- 
visions of the National Industrial Recovery Act. 

I. DESCRIPTION OF THE INDUSTRY 

The industry includes the artificial propagation of several varieties 
of brook trout and the selling in the Eastern Section of the United 
States of trout eggs for hatching, live trout of various ages for stock- 
ing of streams, and mature trout for food purposes. 

The industry, on account of the requirement of large quantities 
of cold water, is of necessity confined to the northern states or to 
localities of such elevation that the average temperature of the 
available water supplies is quite low. The industry always faces the 
possibility of severe losses through the influx of warm surface waters, 
the infection of the ponds by one or more of the disease producing 
bacteria and fungi and through improper handling of the fish or 
eggs at certain stages of their development. These losses can be 
avoided to a large extent through the knowledge and skill of trained 
employees and for this reason it is impracticable to increase employ- 
ment greatly. 

Under nonnal economical conditions the production of eggs was 
the most important part of the business. Such eggs were sold to 
Federal, state and private agencies for hatching. The small fish 
were usually taken care of for a short time and then liberated into 
the public or private streams. To a much lesser extent immature 
fish and some adults were also sold and used for propagation pur- 
poses in public and private waters. Only the excess stock of mature 
fish were formerly used for market purposes. However, in recent 
years there has been a decline in the demand for eggs and fish for 
stocking purposes. This has been due to the reduction in appropria- 
tions for such purposes to state and Federal governments, and to the 
inability of private individuals and clubs to restock their preserves 
as copiously as formerly. As a result, the number of mature fish 
tended to increase and these have added to the supply which were 
normally sold for food purposes. Most of the output used for food is 
sold to hotels, clubs and restaurants. The demand is limited as the 
price of brook trout must of necessity be high and only comparatively 
few people are in a position to purchase such food luxuries. 

Late statistics of this industry are not available, but in 1929 the 
sales of all products of the industry in the Eastern Section amounted 

(346) 



347 

to nearly $400,000, of which something over one-third consisted of 
receipts for eggs. It is believed that this proportion is now lower. 
The production of the Eastern Section probably now approximates 
50% of the total of the United States. 

II. LABOR PROVISIONS 

The code provides for a reduction in the hours of labor and an 
increase in the rates of pay. Only a comparatively small number of 
additional employees will be put on the payrolls as there has been 
but little unemployment among trained fish culturists. The absence 
of recent statistics prevents any definite statement as to the effect 
of increased wages but it is estimated that this may increase purchas- 
ing power among employees by some fifteen or twenty percent. 

III. UNFAIR METHODS OF COMPETITION 

In addition to the usual unfair practices, the code provides for 
standardization of the method of basing prices for the several 
products of the industry. The provision prohibiting the industry 
from selling its products on consignment will, according to repre- 
sentatives of the industry, be of real value in maintaining price 
levels and will thus enable the industry to live up to the labor and 
wage provisions of the code. 

rv. FINDINGS 

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

I find that : 

(a) Said divisional code is well designed to promote the policies 
and purposes of Title I of the National Industrial Kecovery Act, 
including removal of obstructions to the free flow of interstate and 
foreign commerce which tend to diminish the amount thereof and 
will provide for the general welfare by promoting the organization 
of industry for the purpose of cooperative action among the trade 
groups, by inducing and maintainmg 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, fishery, and agricultural products through increasing 
purchasing power, by reducing and relieving unemployment, by 
improving standards of labor, and by otherwise rehabilitating 
industry. 

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

(c) The divisional 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 



348 

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

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

(e) The divisional 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 
divisional code. 

For these reasons, therefore, I have approved this divisional code. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
July 25, 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE TROUT FARMING INDUSTRY, EASTERN SEC- 
TION 

A DIVISION OF THE FISHERY INDUSTRY 

Article I — Purpose 

Section 1. The National Code of Fair Competition for the Fishery 
Industry with the exceptions and additions hereinafter specifically 
enumerated shall constitute the code of fair competition for the trout 
farming division, Eastern Section, of the fishery industry in accord- 
ance with Article VIII, Title C, Section 1, of said national code, and 
shall be the standard of fair competition for the trout farming divi- 
sion. Eastern Section, of the fishery industry, and shall be binding 
upon every member thereof. 

Article II — Definitions 

Section 1. Wherever a term is used in this divisional code which is 
defined in said national code, the definition thereof contained in said 
national code shall apply to the trout farming industry. As used 
herein : 

(a) The term "trout farming industry" means the commercial 
propagation of trout in protected private waters in the " Eastern 
Section " ; including, 

(1) the raising and marketing of trout eggs for hatching, 

(2) the raising and marketing of live trout for stocking, and 

(3) the raising and marketing of trout for consumption as human 
food. 

(b) The terms " trout farm " and " hatchery " mean all real prop- 
erty (including farm lands, ponds, streams, buildings, and equip- 
ment) owned, leased, or used for the commercial propagation of 
products of the trout farming industry. 

(c) The term " Executive Committee " means the supervisory body 
provided for in Article VIII, Title C, Section 1, paragraph (e), of 
said national code, and created pursuant to Article VIII, Title B, 
hereof. 

(d) The term "Eastern Trout Growers Association, Incorpo- 
rated " means the corporation so named, sectional in scope. 

(e) The term " trout " means : brook trout, {Salvelinus fontinalis) ; 
rainbow trout, {Salmo irideus) ; cutthroat trout, {Sahiio leioisi) ; 
brown trout, {Salmo fa7%o) ; Loch Leven trout, {Salmo levenensis) ; 
lake trout, {Ci'-istivo')ner namaycush) ; landlocked salmon, {Salmo 
solar sehago). 

(f) The term "Eastern Section" includes all States east of the 
Mississippi River, except Michigan and Wisconsin. 

(g) The term " price terms " means prices, discounts, rebates, al- 
lowances, and all other terms or conditions of sale. 

(349) 



350 



Article III — Hours of Labor 

Section 1. The labor hour provisions contained in Article III of 
said national code shall apply to the trout farming industry, withi 
the following exception : 

(a) Article III, Section 2, of said national code shall not apply 
to the trout farming industry, and in lieu thereof the following 
shall apply : 

'• No other employee shall be permitted to work more than ninety 
hours in an}^ two consecutive weeks or more than six days in any 
seven, with the following exceptions :" 

(1) Exception (d) of Article III, Section 2, of said national 
code; 

(2) Exception (e) of Article III, Section 2, of said national 
code; 

(3) Exception (f) of Article III, Section 2, of said national 
code; 

(4) Exception (g) of Article III, Section 2, of said national 
code; and 

(5) ExceiDtion (h) of Article III, Section 2, of said national 
code. 

Article IV — ^Wages 

Section 1. The labor wage provisions contained in Article IV of 
said national code shall apply to the trout farming industry, with 
the following exception : 

(a) Article IV, Section 2, of said national code shall not apply to 
the trout farming industry, and in lieu thereof the following shall 
apply : 

No other employee shall be paid less than at the rate of $15,75 per 
week, for those who work by the week; or 350 per hour, for those 
who work by the hour. 

Article V — General Labor Provisions 

Section 1. The mandatory clauses from Section 7 (a) of the Act 
and the other general labor provisions contained in Article V of 
said national code, with the exception of Section 10 of said Article, 
are specifically incorporated herein by reference and shall apply to 
the trout farming industry, and in addition thereto the following: 

(a) No person under eighteen years of age shall be permitted 
to work at occupations or operations which are deemed to be hazard- 
ous in nature or detrimental to health. The Executive Committee 
shall submit before August 15, 1934, a list of such occupations or 
operations to the Administrator. 

(b) The agreement of hire shall provide that wages shall be 
exempt from fines; and from charges and deductions, except for 
employees' voluntary contributions to pension, insurance, or benefit 
funds, and except as may be required by State legislation enacted 
for the benefit of employees; and shall provide also that no employer 
shall withhold wages of employees beyond the customary time for 
payment of wages to co-employees, except upon service of legal 
process or other papers lawfully requiring same. Deductions for 



351 

other purposes may be made only when an agreement covering the 
■same is in writing and kept on file by the employer, open to the in- 
spection of the x\dministrator. 

(c) The agreement of hire shall provide further that wages shall 
be paid at least semi-monthly. 

Article VI — Unfair Methods of Competition 

Section 1. In addition to the unfair methods of competition pro- 
visions contained in Article VI of said national code, the following 
shall apply in like manner to the trout farming industry : 

(a) Consignment Selling. — To sell in the Eastern Section products 
of the trout farming industry on consignment. 

(b) Terms of Sale. — To accept less than the net invoice price on 
products of the trout farming industry, without lawful reason. 

(c) Inducing Breach of Contract. — To induce maliciously a 
breach of any existing contract for the sale or purchase of products 
of the trout farming industry, or to prevent maliciously the per- 
formance of any contractual obligations for the sale or purchase of 
products of the trout farming industry. 

(d) Disparagement of Competitors. — To impute falsely to com- 
j)etitors dishonorable business conduct, inability to perform contracts, 
or questionable credit standing; or to represent falsely the grade 
or quality of their products. 

(e) Flat Rate Selling. — To sell or offer to sell, or having sold, to 
deliver, trout by count without itemizing the number of each size 
within 1/^ inch tolerance above or below the stated size. 

(f) Cost Finding. — To fail to utilize, to the extent found prac- 
ticable, the cost finding and accounting method promulgated pur- 
suant to Article VIII, Title C, Section 1, paragraph (e), hereof. 
No member of the trout farming industry shall suggest uniform 
additions, percentages or differentials or other uniform items of cost 
which are designed to bring about arbitrary uniformity of costs or 
prices. 

(g) Alloivance for Claims. — To give or grant any allowance for 
a claim on trout eggs or live trout or permit any reduction by a 
customer from the sales price as an allowance for a claim on trout 
eggs or live trout unless such claim or deduction is requested within 
seven da3's after receipt of such products; and further, unless such 
claim or deduction is supported by a written statement from the 
buyer, certifying to all essential facts. To fail forthwith to forward 
to the Executive Committee a complete statement regarding the 
claim or deduction and the settlement thereof. 

(h) Price Basis. — To sell or offer for sale, quote any price, or 
make any business settlement on any other basis than the following : 

(1) Trout eggs by the thousand, f.o.b., hatchery, 

(2) Market trout by weight, f.o.b., hatchery, 

(3) Live trout by count, itemized by inches in length, from fry to 
and including nine inches in length, and 

(4) Live trout over nine inches in length, by weight, f.o.b. 
hatchery. 

(i) Payment of Assessments for Code Adininistration. — To fail 
to pay the assessments as provided for in Article VIII, Title D, 
hereof. 



352 

(j) Filing Prices. — To fail to file with a confidential and disin- 
terested agent of the Executive Committee or, if none, then with 
such an agent designated by the Administrator, identified lists of 
all of his price terms, which lists shall completely and accurately 
conform to and represent the individual pricing practices of the 
member filing same. Such lists shall contain the price terms for 
all such standard products of the trout farming industry (trout 
eggs, nuirket trout and live trout) as are sold or offered for sale 
by said member and for such non-standard products of said mem- 
ber as shall be designated by the Executive Committee. Said price 
terms shall in the first instance be filed within fifteen days after 
the date of approval of this divisional code. Price terms and re- 
vised price terms shall become effective immediately upon receipt 
thereof by said agent. 

(k) Increased Prices. — To file a higher price within forty-eight 
(48) hours after having filed a revision in price terms. 

(1) Adherence to Filed Prices. — To sell or offer to sell any prod- 
ucts of the trout farming industry, for which price terms have been 
filed pursuant to the provisions of this Article, except in accordance 
with such price terms : Provided ho^vever., that the provisions of 
this paragraph shall not be construed to apply to the purchase or 
exchange among members of the trout farming industry of products 
of the trout farming industry for resale to non-members of the 
industry. 

(m) Agreement on Prices. — To enter into any agreement, under- 
standing, combination or conspiracy to fix or maintain price terms, 
or cause or attempt to cause any member of the trout farming 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. 

(n) Destructive Price Cutting. — To engage wilfully in destruc- 
tive price cutting. Any member of the trout farming industry or 
of any other industry or the customers of either may at any time 
complain to the Executive Committee that any filed price con- 
stitutes unfair competition as destructive price cutting, imperiling 
small enterprise or leading toward monopoly or the impairment of 
code wages and working conditions. 

(0) Emergency Basis for Prices. — To sell below the stated mini- 
mum price for any given product of the trout farming industry 
when an emergency exists as to am' such product in accordance with 
the following provisions: 

(1) If the Administrator, after investigation, shall at any time 
find both (a) that an emergency has arisen within the trout farming 
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 (b) that the 
determination of the stated minimum price for a specified product 
within the trout farming industry for a limited period is necessary 
to mitigate the conditions constituting such emergency and to effec- 
tuate the purpose of the Act, the Executive Committee 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; and 



353 

(2) 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 Act, he shall 
publish such price. Thereafter, during such stated period, no mem- 
ber of the trout farming industr}^ 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; provided that 

(3) When 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. 

Article VII — iNFORMATioisr, Books axd Records 

Section 1. The provision contained in Article Vll of said 
national code shall apply to the trout farming industry. 

Article VIII — Administration 

title a — supervisory bodies 

Section 1. The provisions contained in Article VIII of said na- 
tional code shall apply to the trout farming industry, with the fol- 
lowing modifications: 

title b — executive committee, selection 

Section 1. The Eastern Trout Growers Association, Incorporated, 
shall within thirty days after the effective date of this divisional code 
conduct an election in which all members of the trout farming in- 
dustry may participate equally for the purpose of electing an Exec- 
utive Committee of five members to administer this divisional code; 
and at such election all votes cast by mail or by proxy shall have 
equal weight with those cast in person. Subsequent elections shall 
be conducted by the Executive Committee then in office. 

Section 2. Only members of the trout farming industry comply- 
ing with this divisional code and contributing to the expenses of its 
administration as provided in Title D of this Article shall be en- 
titled to participate in the election of the members of the Executive 
Committee or to receive the benefit of its voluntary activities. 

Section 3. In addition to the membership as above provided, there 
may be one to three members on the Executive Committee to be ap- 
pointed by the Administrator to serve without vote for such periods 
respectively as he may designate. 

Section 4. The Executive Committee shall have the same privi- 
leges and be subject to the same limitations as the National Code 
Authority has and is subject to in Article VIII, Title A, Sections 2, 
3, 4, 5 and 6, of said national code. 

title c — executive committee, powers and duties 

Section 1. The Executive Committee shall supervise the effectua- 
tion of the iDurposes of this divisional code pursuant to the provisions 
of Article VIII of said national code, and is authorized further : 

(a) To designate a confidential and disinterested agent for the 
purpose of carrying out the provisions of Article VI, Section 1, para- 



354 

graph (j). hereof. Said agent shall receive price terms filed by 
members of the trout farming industry in accordance with Article 
VI. Section 1. paragraph (j), hereof, and innnediately 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 re- 
ceipt be immediately and simultaneously distributed to all members 
of the trout farming industry and to all their customers who have 
applied therefor and have offered to defray the cost actually in- 
curred by the Executive Committee in the preparation and distribu- 
tion thereof and l)e available for inspection by any of their customers 
at the olHce of such agent. Said lists or revisions or any part thereof 
shall not be made available to any person until released to all mem- 
bers of the trout farming industry and their customers, as aforesaid; 
provided, that prices filed in the first instance shall not be released 
until the expiration of the fifteen day period after the approval of 
this divisional code provided for in Article VI, Section 1, paragraph 
(j), hereof. 

(b) To maintain a permanent file of all price terms filed as herein 
providetl. and, except upon written consent of the Administrator, to 
refrain from destroying any part of such records. Upon request the 
Executive Committee shall furnish to the Administrator or any duly 
designated agent of the Administrator, copies of any such lists or 
revisions of price terms. 

(c) To afford an opportunity for a hearing within five days, upon 
receipt of a complaint under Article VI, Section 1, paragraph (n), 
hereof, to the member of the trout farming industry against whom 
such complaint is made. The Executive Committee shall within 
fourteen clays make a ruling or adjustment thereon. If such ruling 
is not concurred in by either party to the complaint, all papers shall 
be referred to the Research and Planning Division of the N.R.A. 
which shall render a report and recommendation thereon to the 
Administrator. 

(d) To recommend review or reconsideration of any determina- 
tions effected under Article VI, Section 1, paragraph (o), subpara- 
graph (2), hereof, or the Administrator may cause the same to be 
reviewed or reconsidered and appropriate action taken. 

(e) To cause to be formulated methods of cost finding and ac- 
counting capable of use by all members of tlie trout farming indus- 
try. When such cost finding and accounting methods shall have 
been formulated same shall be submitted to the Administrator for 
review. If approved by the Administrator, full information con- 
cerning such methods shall be made available to all members of the 
trout farming industry. Nothing herein contained shall be con- 
strued to permit the Executive Committee to suggest uniform addi- 
tions, percentages or differentials or other uniform items of cost 
which are designed to bring about arbitrary uniformity of costs 
or of prices. 

(f) To investigate the wisdom and propriety of establishing 
quality grades for the products of the trout farming industry, and 
to formulate a recommendation for transmission to the National 
Code Authority, as provided for in Article VIII, Title B, Section 1, 
paragraph (f), of said national code. 



355 

(g) To cooperate with the Administrator in regulating the use 
of any N.R.A. insignia solely by those members of the trout farm- 
ing industry who are complying with this divisional code. 

TITLE D — EXPENSES 

Section 1. If the assessments provided for in Article VIII, Title 
E, Section 1, of said national code shall fail to provide sufficient 
funds for the proper administration of this divisional code, each 
member of the trout farming industry shall bear his proportionate 
share of any additional expense, if the Administrator shall approve 
an assessment for the same. 

Section 2. It being found necessary in order to support the ad- 
ministration of this divisional code and to maintain the standards 
of fair competition established hereunder and to effectuate the policy 
of the Act, the Executive Committee 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 this divisional 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 trout 
farming 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 trout farming 
industry, and to that end, if necessary, to institute legal proceedings 
therefor in its own name. 

Section 3. Each member of the trout farming industry shall pay 
his or its equitable contribution to the expense of the administration 
of said national code and of this divisional code, as in said codes pro- 
vided, subject to rules and regulations pertaining thereto issued by 
the Administrator. 

Section 4. The Executive Committee 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 expendi- 
tures in excess of prior budget estimates except those which the 
Administrator shall have so approved. 

Article IX — Modification and Monopolies 

Section 1. This divisional code and all the provisions thereof are 
expressly 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 the Act; and specifically, but without 
limitation, to the right of the President to cancel or modify his 
approval of this divisional code or any condition imposed by him 
upon approval thereof. The other provisions contained in Articles 



356 

IX and X of said national code shall apply to the trout farming 
industry whether or not in said Articles of said national code specific 
reference is made to this divisional code. 

Aeticle X — Effective Date 

Section 1. This divisional code shall become effective on the second 
Monday following its approval by the President. 

Approved Code No. 308 — Supplement No. 6. 
Registry No. 117-31. 



Approved Code No. 347 — Supplement No. 35 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

OIL FIELD PUMPING ENGINE MANUFACTURING 

INDUSTRY 

As Approved on July 25, 1934 



ORDER 



Approving Supplementary Code or Fair Competition for the Oil 
Field Pumping 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 Oil Field Pumping Engine 
Manufacturing Subdivision of Machineiy and Allied Products In- 
dustry, and hearing 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 by reference said 
annexed rejDort 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 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. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended. 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

July 25, 193J^. 

(357) 



REPORT TO THE PRESIDENT 

The President. 

The White House. 
Sir : This is a report on the Supplemental Code of Fair Competi- 
tion for the Oil Field Pumping Engine ^Manufacturing Subdivision 
of the Machinery and Allied Products Iiulustry, public hearing hav- 
ing been conducted thereon in Washington, D.C, December 21, 1933, 
in accordance with the provisions of Title I of the National Indus- 
trial Recovery Act. Every person who filed a request for an appear- 
ance was freely heard in public and all statutory and regulatory 
requirements were complied with. 

GENERAL STATEMENT 

The Oil Field Pumping Engine Manufacturers Association being^ 
truly representative of this Subdivision of the Machinery and Allied 
Products Industry, has elected to avail itself of the option of sub- 
mitting a Supplemental Code of Fair Competition, as provided in 
paragraph (2), Article I of the Basic Code for the Machinery and 
Allied Products Industry approved by j^ou on the seventeenth day 
of March, 1934. 

This Subdivision represents a part of the capital goods Industry,, 
manufacturing and selling internal combustion engines of slow- 
speed, stationary, oil-well pumping type, using natural gas or oiL 
for fuel, accessories thereto and parts thereof. 

ECONOMIC EFFECT 

In 1929, this Subdivision of the Industry employed approximately 
1,657 persons; 1,496 are estimated to have been factory workers. 

Since 1929, annual sales decreased approximately 85% in 1932 and 
employment 67% as of the first quarter of 1933. Since then, factory 
employment has increased to 1,046 or 113%, and man-hours 117%, 

In June 1933, about 65% of the factory workers were working 
more than 40 hours per week, and 28% were receiving less than 40 
cents per hour with a lowest minimum wage ranging between 25 and 
29.5 cents. The lowest minimum wage paid by any reporting con- 
cern as of October 15, 1933, ranged between 30 and 34.9 cents. 

The mininnim wage provisions for this Subdivision 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 50,0(X) population 40<;'' per hour 

lO.rKJO to 50.000 populatiou 3Sc' per hour 

10,000 popuhition and under SG^- per hour 

(358) 



359 

In addition to the minimum wage rates shown above, the Supple- 
mental Code provides that women engaged in substantially the same 
work as men shall receive the same rate of pay as such men employ- 
ees, and 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 emploj^ed as specified, and the minimum in 
the South shall be not less than 32 cents per hour. 

Estimated number of factory workers receiving less than designated hourly 

rates 



Proposed minimum hourly rates 



40 cents (other U.S.) 
38 cents (other U.S.) 
36 cents (other U.S.) 
32 cents (South) 



Distribution of factory 
workers receiving less 
than the minimum 
regardless of location 




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 pro- 
posed minimum rates will probably cause an increase in factory pay- 
rolls. The estimated increase as of June 15, 1933, regardless of loca- 
tion of the workers, will probably, under the most favorable condi- 
tions, not exceed 4.0 percent assuming only upward adjustment in the 
brackets below the 40-cent minimum and no change in man-hour 
requirements. 

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 adopts the relevant portions of Article II " Definitions " 
and Article VI "Administration ", and Article VIII, " Modifications 
and Termination " of the Basic Code for the Machinery and Allied 
Products Industry, as approved March 17, 1934. 

Article V establishes a Code Authority consisting of seven mem- 
bers, one of whom may be elected from and by the emploj^ers who 
are non-members of the Applicant Association. The Administrator, 
in his discretion, may appoint one additional member (without vote 
and without expense to the Subdivision). 

Article VI provides for an accounting system and methods of 
cost finding and/or estimating. 

Article VII provides for the determination of a lowest reasonable 
cost, when an emergency exists in the Subdivision as a result of de- 
structive price-cutting. The Administrator may approve, disapprove, 
or modify the determination. 

80835—34 18 



360 

Article VIII i^rovides for methods of setting up, revising and filing 
price lists and discount sheets and terms of sale and payment. 

Article IX sets forth the fair trade practices which have been 
especially designed to effect fair competition in this Subdivision. 

Article X defines export territory and provides that filed price lists 
are not applicable to export shipments. 

Article XI contains the mandatory provisions contained in Section 
10 (b) of the Act, and also provides for the submission of proposed 
amendments to the Supplemental Code. 

Article XII provides for the withdrawal of this Subdivision from 
jurisdiction of the Basic Code Authority and for the continued func- 
tioning of this Subdivision as an individual industry under its own 
code. 

Article XIII stipulates that there shall be no inequitable restric- 
tions and provides against monopolies. 

Article XIV gives the effective date of this Supplemental Code. 

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 poli- 
cies and purposes of Title I of the National Industrial Recovery 
Act, including removal of obstructions to the free flow of inter- 
state and foreign commerce which tend to diminish the amount 
thereof and will 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 the united action oi 
labor and management under adequate governmental sanctions and 
supervision, by eliminating unfair competitive practices, by promot- 
ing the fullest possible utilization of the present productive ca- 
i:)acity of industries, by avoiding undue restriction of production 
(except as may be temporarily required), by increasing the con- 
sumption of industrial and agricultural products through increasing 
purchasing 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 
employees, and is not classified by me as a major industry. 

(c) The Supplemental Code as approved comj^lies 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 gi'oup is an industrial association truly representative of 
the aforesaid Subdivision of the industry; 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 elim- 
inate or oppress small enterprises and will not operate to discriminate 
airainst them. 



361 

(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, 
July 25, 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE OIL FIELD PUMPING ENGINE MANUFACTURING 
INDUSTRY 

A DmSION 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 Oil Field Pumping Engine 
Manufacturing Subdivision of the Machinery and Allied Products 
Industry, and together with the Code of Fair Competition of Ma- 
chinery and Allied Products Industry, shall be the standard of fair 
comi)etition for this Subdivision, and shall be binding on every 
emplo3^er therein. 

Article II — Definitions 

''Applicant " means the Oil Field Pumping Engine Manufacturers' 
Association, a trade organization, all members of which are engaged 
in the manufacture for sale of the products of the Oil Field Pump- 
ing Engine 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 Presi- 
dent, and as such definition may from time to time be amended. 

" Subdivision " means the Oil Field Pumping Engine Manufactur- 
ing Subdivision of the Machinery and Allied Products Industry as 
defined and set forth in paragraph 20, Article II of the Code of Fair 
Competition of the Machinery and Allied Products Industry as 
follows : 

"■• Oil Field Pumping Engine Manufacturing Subdivision " means 
the manufacture for sale of internal combustion engines of the slow- 
speed, stationary, oil-well pumping type, using natural gas or oil for 
fuel, accessories thereto and parts thereof, and includes all those 
engaged in such manufacture for sale." 

" Code " means the Code of Fair Competition for the Machinery 
and Allied Products Industry as approved by the President March 
17, 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 this Subdivision either 
on his own behalf or as an employer of labor. 

" Employee " means anyone who is employed in the Subdivision by 
any such employer. 

(362) 



363 

" 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 
Kecovery. 

"■ Basic Code Authoritj^ " 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. 

"' Publish " means to make available to the public. 

Article III — Employment Provisions 

The following Articles of the Code, viz: Article III, "Working 
Hours " ; Article IV, " Wages " ; and Article V, " General Labor Pro- 
visions " 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 this Supplemental Code as such or as it may hereafter 
be administered as an autonomous Code ; and Article VIII, " Modifi- 
cations and Termination " are hereby made a part of this Supple- 
mental Code, with the same effect as if they were written into this 
Supplemental Code. 

Article V — Administration 

(a) A Code Authority for this Subdivision is hereby constituted 
to administer, supervise and facilitate the enforcement of the Code 
and of this Supplemental Code in the manner and to the extent pro- 
vided in the code and in this Supplemental Code. 

(b) During a period not to exceed sixty (60) days following the 
effective date and pending the election of the permanent Code Au- 
thority, the executive committee of the Applicant shall constitute a 
temporary Code Authority. The Administrator in his discretion 
may appoint one additional member (without vote and without ex- 
pense to the Subdivision ) . 

(c) The Applicant shall, b}^ written notice sent by registered mail 
to all employers known to the Applicant, call a meeting of employers 
to be held within sixty (60) days after the effective date of this 
Supplemental Code for the purpose of adopting procedural rules and 
regulations for the election, organization and operation of the per- 
manent Code Authority and electing a permanent Code Authority 
which shall consist of seven members, one of whom may be elected 
from and by the employers who are non-members of the Applicant, 
if such representation shall be so desired by such employers. The 
Administrator, in his discretion, may appoint one additional mem- 
ber (without vote and without expense to the Subdivision). The 
permanent Code Authority so elected and appointed shall succeed the 
temporary Code Authority. 



364 

Any vacancy on the Code Authority due to death or resignation 
or because a member thereof has ceased to be connected with the 
Subdivision shall be filled at a meeting of emploj^ers called b}' Code 
Authority on at least ten (10) days' notice by registered mail sent 
to all known employers in the Subdivision and by a vote similar 
to the vote by which the retired member was originally elected. 

In order that the Code Authority shall at all times be truly rep- 
resentative of the Subdivision 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. 

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

(d) Any employer shall be entitled to vote at the election of the 
permanent Code Authority and at other meetings of employers and 
share in the benefits of the activities of Code Authority and may 
participate in any endeavors of Code Authority in the preparation 
of any amendment or revisions of, or additions or supplements to, 
this Supplemental Code by paying or agreeing to pay, as and when 
assessed, his proper pro rata share of the reasonable cost of admin- 
istering this Supplemental Code as determined by Code Authority. 

(e) Action by employers in any Subdivision meeting for the elec- 
tion of Code Authority shall be by vote of the employers entitled to 
vote as provided in Section (d) of this Article V, and who are pres- 
ent in person or by proxy, each such employer to have one vote only. 
Action by employers in any Subdivision meeting for the adoption of 
procedural rules, revisions or additions to the Supplemental Code, 
or the transaction of other business of the Subdivision under this 
Supplemental Code, shall be by vote of the employers in the Sub- 
division who are entitled to vote thereat as provided in Section (d), 
Article V of the Supplemental Code and are present in person or by 
proxy duly executed and filed with Code Authority; cast and com- 
puted in the manner provided in Section (d) Article VI of the 
Code. All questions as to the number of votes which each employer 
shall be entitled to cast at any meeting of employers other than the 
meeting held to vote for the election of the permanent Code Author- 
ity shall be determined by Code Authority in accordance with Sec- 
tion (d) Article- VI of the Code. 

(f) Employers in this Subdivision having a common interest and 
common problems may be grouped by Code Authority for adminis- 
trative purposes. There shall be a group Code Authority approved 
or appointed by Code Authority for each such group. 

(g) If formal complaint is made to Code Authority that provi- 
sions of this Supplemental Code have been violated by an}^ employer. 
Code Authority or the proper Group Code Authority may, to the 



365 

extent permitted by the Act, cause such investigation or audit to be- 
made as may be deemed necessary. If such investigation is made by 
Group Code Authority, it shall report the result of such investiga- 
tion or audit to Code Authority for action. 

(h) The Code Authority may appoint a Trade Practice Commit- 
tee which shall meet with the Trade Practice Committees appointed 
under such other codes as may be related to the Subdivision for the- 
purpose of formulating fair trade practices to govern the relation- 
ships between production and distribution employers under this 
Supplemental Code and under such others to the extent that such 
fair trade practices may be proposed to the Administrator as amend- 
ments to this Supplemental Code and such other Codes. 

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 meth- 
ods have been formulated, full details concerning them shall be made 
available to all employers. Thereafter all employers shall deter- 
mine and/or estimate costs in accordance with the principles of such 
methods. 

Article VII — Selling Below Reasonable Cost 

When the Code Authority determines that an emergency exists in 
this Subdivision and that the cause thereof is destructive price- 
cutting such as to render ineii'ective or seriously endanger the main- 
tenance of the i^rovisions of this Supplemental Code, the Code 
Authority may cause to be determined the lowest reasonable cost of 
the 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 determina- 
tion. Thereafter, during the period of the emergency, it shall be 
an unfair trade practice for any emploj^er of the Subdivision to sell 
or offer to sell any jjroducts 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 paj^ 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 tlie determination to be reviewed. 

Article VIII — Price Lists 

(a) If and when Code Authority determines that in any group 
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 terms of sale and payment, each employer 
engaged in the manufacture of such product, shall, within ten (10) 
days after notice of such determination, file with Code Authority a 
net price list, or a price list with discount sheet, as the case may be, 
individually prepared by him, showing his current prices, or prices 



366 

and discounts, and terms of sale and payment for such specified 
product, and Code Authority shall immediately publish and send 
copies thereof to all known employers who are cooperating under 
this Supplemental Code as described in Article V (d) and engaged 
in the manufacture of such specified products. 

Revised price lists and/or discount sheets and/or terms of sale and 
payment may be filed from time to time thereafter with the Code 
Authority hj any such employer, to become operative upon the date 
specified therein, but such revised price lists and/or discount sheets 
and or terms of sale and payment shall be filed with the Code Au- 
thority ten (10) days in advance of the operative date. Copies 
thereof, with notice of the operative date specified, shall be imme- 
diately published and sent to all employers cooperating under this 
Supplemental Code as described in Article V (d), any of whom may 
file, if he so desires, revisions of his price lists and/or discount 
sheets and/or terms of sale and payment, which shall 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.^ 

(b) If and when 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 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 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 
terms of sale and payment for such specified product should be put 
into effect in such group, then each employer in such group shall, 
within twenty (20) days after notice of such determination, file with 
Code Authority net price lists or price lists and discount sheets, with 
terms of sale and payment, showing his prices and discounts and 
terms of sale and payment, and the Code Authority shall immediately 
publish and send copies thereof to all known employers who are 
cooperating under this Supplemental Code, and such price lists 
and/or discount sheets and/or terms of sale and payment may be 
thereafter revised in the manner hereinbefore provided. Provided 
that Code Authority shall make no determination to place any prod- 
uct of the Subdivision (not now on a price list basis) on a price list 
basis, as provided in tliis Section unless affirmative consent to such 
determination is given by a majority vote of employers who are at 
that time cooperating under this Supplemental Code as described in 
Article V (d). and are engaged in miiiiufacturing such product. The 
eligibility requirements, method and effect of such voting shall be 
the same as is provided by Article V. 

(c) Code Authority for the purpose of determining the lowest 
reasonable cost, shall, to the extent permitted by the Act, have power 
on its own initiative or on the complaint of any employer, to investi- 
gate any price or the terms of sale and payment for any product; 
and, for the purpose of the investigation thereof, to require an em- 
ployer to furnish sucli information concerning the cost of manufac- 
turing and selling such product as Code Authority shall deem neces- 
sary or proper for such purpose, and as the Act may allow. Upon 

^ See paragraph 2 (3) of order approving this Code. 



367 

request, said information thus obtained shall be available to the 
Administrator. 

No employer shall sell directly or indirectly by any means whatso- 
ever, any product of the Subdivision covered by provisions of this 
Article VIII at a price or at discounts or on terms of sale and pay- 
ment, different from those provided in his own current net price 
lists, or price lists and discount sheets, and terms of sale and payment. 

Article IX — Trade Practices 

Each of the following acts and practices is deemed to be inimical 
to the best interests 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, whether in the 
form of monej^ or otherwise or the offering or extending- to any 
customer any special service or privilege not extended to all cus- 
tomers of the same class, for the purpose of influencing a sale. 

2. No employer of the Subdivision shall give, permit to be given, 
or directly offer to give, anything of value for the purpose of in- 
fluencing or rewarding the action of any employee, agent, or repre- 
sentative of another in relation to the business of the employer of 
such employee, the principal of such agent or the represented party, 
without the knowledge of such employer, principal or party. Com- 
mercial bribery provisions shall not be construed to prohibit free 
and general distribution of articles commonly used for advertising 
except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

3. Any discrimination between purchasers of the same class by 
the sale of any standardized article, having a published price, at 
any price below the seller's published price, by means of direct or 
indirect price concessions, or by means of any privilege not extended 
to such purchasers 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 trade-marks, or of any other legal proceedings, 
not in good faith, which would tend to harass competitors or intimi- 
date their customers. 

6. The engaging in destructive price-cutting by any employer of 
this Subdivision. 

Article X — Sales for Export 

The provisions of this Supplemental Code concerning pricing and 
marketing shall not apply to direct export sales of any product, or 
to sales of any product destined ultimately for export. The term 



368 

*' 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 Subdivision in such territory or possession. 

AUTICLE XI — ^^lODIFICATIONS 

(a) As provided by Section 10 (b) of the Act, the President may 
from time to time cancel or modify any order, approval, license, 
rule or regulation issued under Title I of the Act. 

(b) Any amendments, additions, revisions, or supplements of this 
Supplemental Code, proposed by Code Authority, and authorized 
by the aflEirmative vote of two thirds 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 by Article V hereof. 

Article XII — Withdrawal 

Upon thirty (30) days' notice to the Basic Code Authority and to 
the Administrator, this Subdivision may, upon the concurring af- 
firmative vote of employers within the said Subdivision entitled to 
cast two-thirds or more of all the votes that might be cast by all 
employers within the Subdivision entitled to vote thereon, withdraw 
from the jurisdiction of the Basic Code Authority. The eligibility 
of voters and the method and effect of such voting shall be in ac- 
cordance with the provisions of Article V hereof. After and in the 
event such withdrawal is accomplished, this Supplemental Code, 
together with the provisions of the Code, shall become and be the 
sole code governing this Subdivision and the Code Authority shall, 
for this Subdivision, become and be the sole Code Authority and shall 
perform all the functions with respect thereto. 

Article XIII — 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 them, and is designed to effectuate the policy of the Act. 

Article XIV — 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. 35. 
Registry No. 1328-05. 



Approved Code No. 201 — Supplement No. 15 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

BUTTON JOBBERS' OR WHOLESALERS' TRADE 

As Approved on July 26, 1934 



ORDER 



Supplementary Code of Fair Competitiox for the Button 
Jobbers' or Wholesalers' Trade 

a division of the wholesaling or distributing trade 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recover}' Act, approved June 16, 1933, for the approval of a Sup- 
plemental Code of Fair Competition for the Button Jobbers' or 
Wholesalers' Trade to the Code of Fair Competition for the Whole- 
saling or Distributing Trade, and hearings having been duly held 
thereon and the annexed report on said Code, containing findings 
with respect thereto, having been made and directed to the President : 

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 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, however, to the following conditions: 

(1) The Trade Practice Committee set up in Article III, Section 
5 (a) is hereby empowered to confer with the Code Authority for 
the Medium and Low Priced Jewelry Manufacturing Industry or 
any agency designated by that Code Authority to arrive at some 
mutual proposal to be submitted to the Administrator, on the subject 
of maximum discounts. 

(2) Any member of the Trade or of any other Trade or Industry 
or the customers of either may at any time complain to the Supple- 
mental Code Authority that any price constitutes unfair competi- 
tion as destructive price cutting, imperiling small enterprises or 
tending toward monopoly or the impairment of Code wages and 

(369) 



370 

working conditions. The Supplemental Code Authority shall within 
five (5) days afford an opportunity to the member of the Trade 
complained of to answer such complaint and shall within fourteen 
(14) days make a ruling or adjustment thereof. If such ruling is 
not concurred in by either party to the complaint, all papers shall 
be referred to the Research and Planning Division of N.R.A. 
which shall render a report and recommendations thereon to the 
Administrator. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Robert L. Houston, 

Division Administrator. 

Washington, D.C, 

July ^6, 19S4. 



REPORT TO THE PRESIDENT 

The President, 

The White Home. 
Sir : This is a report of the Hearino; on the Supplemental Code 
of Fair Competition for the Button Jobbers' or Wholesalers' Trade 
conducted in Room D of the Washington Hotel on May 10, 1934. 
The Supplemental Code which is attached was presented by a duly 
qualified and authorized representative of the Trade complying with 
the statutory requirements. 

THE TRADE 

According to statistics furnished by members of the Button Jab- 
bers' or Wholesalers' Trade, it is estimated that in the Men's Wear 
Division there are approximately twenty-five (25) concerns with 
aggregate annual sales of $4,500,000. and in the Women's Wear Divi- 
sion there are approximately one hundred and thirty (130) concerns 
with aggregate annual sales of $16,000,000. In the Men's Wear 
Division approximately four hundred (400) persons are employed 
compared with three hundred (300) in 1929. In the Women's Wear 
Division approximately sixteen hundred and fifty (1,650) persons 
are now employed compared with twelve hundred and fifty (1,250) 
in 1929. 

PROVISIONS OF THE CXDDE 

Since this Code is supplemental to the Code of Fair Competition 
for the Wholesaling or Distributing Trade, it contains no labor 
provisions. 

The provisions containing supplemental definitions are considered 
inclusive and accurate. 

The supplement to the Administrative provisions of the General 
Code establishes a Divisional Code Authority which is fairly and 
adequately representative of all the different elements in the Trade. 

The Trade Practices proposed are not considered in any way 
objectionable, 

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 
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, 
ancl will provide for the general welfare by promoting the organi- 
zation of trade for the purpose of cooperative action among trade 

(371) 



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 use of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), b}' increa.'iing the consumption of industrial and 
agricultural i:)roducts through increasing purchasing power, by re- 
ducing and relieving unemi)loyment. by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Trade normally employs not more than 50,000 employees 
and it 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 a trade association truly representative of 
the aforesaid Trade; and that said association imposes no inequi- 
table restrictions on admission to membership therein. 

(d) The Supplemental Code is not designed to and Avill 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 will not operate to discriminate 
against them. 

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

For these reasons, the Supplemental Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Ad?7iinistrator. 
July 26, 1934. 



SUPPLEMENTAKY CODE OF FAIR COMPETITION FOR 
THE BUTTON JOBBERS' OR WHOLESALERS' TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Supplemental Code is established as a Code of 
Fair Competition for the Button Jobbers' or Wholesalers' Trade 
pursuant to Article VI, Section 1 (c) of the General Code of Fair 
Competition for the Wholesaling or Distributing Trade, approved 
by the President of the United States on January 12, 1934. All 
provisions of the said General Code which are not in conflict with 
the provisions of this Supplemental Code are hereby incorporated 
by reference in this Supplemental Code and made part hereof. Such 
provisions of the General Code together with the supplementing pro- 
visions of this Code are the standards of fair competition for and 
are binding upon every member of said Button Jobbers' or Whole- 
salers' Trade. 

Article II — Definitions 

Section 1. The term " Trade ", as used herein, shall mean the 
business of selling at wholesale to the following trades the following 
articles purchased or secured from a manufacturer or other primary 
seller : 

(a) Buttons, buckles, slides, and ornaments used on ladies', misses', 
and children's apparel, made of various kinds of material to : 

(1) The cutting-up trade, manufacturing ladies', misses', and 
children's apparel. 

(2) Retail Department, dry goods, and trimming stores. 

(3) Chain Stores. 

(4) Wholesale Drv Goods and notion jobbers and jobbers in this 
Trade. 

(b) Buttons and small wear used on men's and boys' clothing to 
the cutting-up trade manufacturing such clothing and to tailor trim- 
ming jobbers. 

Section 2. The term " Wholesaler " or " Jobber " as used herein 
shall include, but without limitation, any individual, association, 
partnership, corporation, or any other form of business enterprise 
or a definitely organized division thereof, engaged in business in 
this Trade as it is defined in Section 1 hereof. 

Section 3. The term '" Member of the Trade " as used herein, shall 
mean any Wholesaler engaged in the Trade as it is defined in Sec- 
tions 1 and 2 hereof. 

Section 4. The term " Divisional Code Authority ", as used herein,, 
shall mean the Divisional Code Authority for the Button Jobbers' or 
Wholesalers' Trade, a division of the Wholesaling or Distributing 
Trade. 

(373) 



374 

Sectiox 5. The term " General Code ", as used herein, shall mean 
the Code of Fair Competition for the Wholesaling or Distributing 
Trade, 

Abticle III — Administration 

SUPPLEMENTING ARTICLE VI, OF THE GENERAL CODE 

Section 1. For the purposes of representation on the Divisional 
Code Authorit}^ and administration, tlie Button Jobbers' or Whole- 
salers' Trade shall be divided into two divisions as follows : 

(a) Women's Wear Division, embracing the Trade as defined in 
Article II, Section 1, Subsection (a) hereof. 

(b) Men's Wear Division, embracing the Trade as defined in 
Article II, Section 1, Subsection (b) hereof. 

Section 2. The Divisional Code Authority for this Trade shall 
consist of sixteen (16) members of the Trade; nine (9) to be ap- 
pointed by the Board of Directors of the Button Merchants' Asso- 
ciation of America, Inc., as representing the Women's Wear Division; 
five (5) to be appointed by the Board of Directors of the Men's 
Wear Button Jobbers' Association, Inc., as representing the Men's 
Wear Division; and two (2) to be selected in a fair manner to be 
approved by the Administrator from members of the Trade who 
are not members of either of said Associations, one (1) from the 
Women's Wear Division and one (1) from the Men's AVear Division. 

Section 3. (a) The Members of the Divisional Code Authority 
appointed by the Button Merchants' Association of America, Inc., 
together with the one member selected to represent the members of 
the AVomen's Wear Division who are not members of the said 
Association shall constitute the control committee for the Women's 
Wear Divisi(m of the Trade. 

(b) It shall be the duty of this control committee to exercise the 
functions of the Divisional Code Authority necessary to secure the 
proper administration of the provisions of this Supplemental Code 
in the Women's AVear Division of the Trade. 

(c) The members of the Divisional Code Authority appointed by 
the Men's AVear Button Jobbers' Association, Inc. together with the 
one member selected to represent the members of the Men's AVear 
Division who are not members of the said Association shall consti- 
tute the control committee for the Men's Wear Division of the Trade. 

(d) It shall be the duty of this control committee to exercise the 
functions of the Divisional Code Authority necessary to secure the 
proper administration of the provisions of this Supplemental Code 
in the Men's AA^'ear Division of the Trade. 

Section 4. The terms of office of members of the Divisional Code 
Authority and the method of selecting their successors, whether for 
full new terms or for unexpired terms, shall be established in the 
by-laws of the Divisional Code Authority. 

Section 5. The Divisional Code Authority shall have the follow- 
ing duties and powers, in addition to those prescribed in the General 
Code, subject to review by the Administrator: 

(a) To appoint a Trade Practice Committee, which shall meet 
with the Trade Practice Committees appointed under other Codes of 
Fair Competition except other Supplemental Codes of Fair Competi- 
tion to the General Code, for the purposes of fornudating Fair Trade 



375 

Practices to govern the relationships between production and dis- 
tribution employers under this Supplemental Code and under such 
other Codes of Fair Competition, to the end that such Fair Trade 
Practices may be proposed to the Administrator as amendments to 
this Supplemental Code and to such other Codes of Fair Competi- 
tion.^ 

(b) To organize, elect officers, hire employees, appoint agents, 
and perform such other acts as may be necessary for the proper 
administration of this Supplemental Code and the General Code. 

(c) To adopt by-laws and rules and regulations for its procedure. 

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

(e) To obtain from members of the Trade, through a confidential 
agency, such information and reports as are required for the admin- 
istration of the Code. 

In addition to information required to be submitted to the General 
Code Authority and to the Divisional Code Authority members of 
the Trade subject to this Code shall furnish such statistical informa- 
tion as the Administrator may deem necessary for the purposes 
recited in Section 3 (a) of the Act, to such federal and state agencies 
as he may designate; provided that nothing in this Code shall 
relieve any member of the Trade of any existing obligations to fur- 
nish 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. 

(f) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provisions 
to govern members of the Trade in their relations with each other 
or with other trades, measures for industrial planning, and stabiliza- 
tion of employment; and including modifications of this Supple- 
mental Code which shall become effective as part hereof upon ap- 
proval by the Administrator after such notice and hearing as he may 
specify. 

Section 6. Upon the request of the Divisional Code Authority, the 
Administrator may appoint an impartial person to make such in- 
spection of the books and records of any member of the Trade as 
may be necessary to ascertain whether or not any violation of this 
Supplemental Code has been or is being committed. 

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



^ See paragraph 2 (1) of order approvinjj this Code. 
80835—34 19 



376 

Section 8. If the Administrator shall determine that anj' action of 
the Divisional Code Authority or any agency thereof, may be un- 
fair or unjust or contrary to the public interest, the Administrator 
may require that such action be suspended to afford an opportunity 
for investigation of the merits of such action and for further con- 
sideration of such Divisional Code Authority or agencj^, pending 
final action, which shall not be effective unless the Administrator 
approves or unless he shall fail to disapprove after thirty days' 
notice to him of intention to proceed with such action in its original 
or modified form. 

Section 9. (a) It being found necessary in order to support the 
administration of this Supplemental Code and to maintain the 
standards of fair comjDetition established hereunder and to effectuate 
the policy of the Act, the Divisional 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 this Supplemental Code. 

(2) To submit to the Administrator for his approval, subject to 
Fuch 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 tlie funds neces- 
sary to support such budget shall be contributed by members of the 
Trade ; 

(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 Trade, and 
to that end, if necessary, to institute legal proceedings therefor in its 
own name. 

(b) Each member of the Trade shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the Divisional Code 
Authority, determined as hereinabove provided, and subject to rules 
and regulations pertaining thereto issued by the Administrator. 
Only members of the Trade complying with the Supplemental Code 
and contributing to the expenses of its administration as herein- 
above provided, unless duly exempted from making such contribu- 
tions, shall be entitled to participate in the selection of members 
of the Divisional 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. 

(c) The Divisional Code Authority shall neither incur nor pay 
any obligations 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 ex- 
penditures in excess of prior budget estimates except those which 
the Administrator .shall have so ai)proved. 

Article IV — Trade Practice Provisions 

SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE 

Section 1. Provisions applying to transactions between members 
of the Trade and any of their customers in both the Women's Wear 
and Men's Wear Divisions : 



377 

(a) Stlling on Consignment. — No merchandise shall be shipped 
on memorandum or on consignment for sale by any member of this 
Trade ; the terms " memorandum " and " consignment " to mean 
that no option shall be given to return merchandise for exchange 
or credit after delivery of such merchandise, except where the said 
terms " memorandum " and " consignment " are hereafter other- 
wise defined except that the Divisional Code Authority with the 
approval of the Administrator may permit shipments on consign- 
ment where special circumstances of the Trade require the practice. 

(b) Shipments. — All shipments of merchandise to customers shall 
be made F.O.B. point of shipment, except shipments by members of 
this Trade from point to point within the metropolitan area of 
trade distributing centers, except where it is hereafter otherwise 
provided. 

Section 2. Provisions applying to Women's Wear Division : 

(a) Provisions applicable to transactions with the cutting-up trade 
manufacturing ladies', misses', and children's apparel : 

(1) Terms and DisGOunt. — The maximum terms of credit to cus- 
tomers of members of this division of the Trade shall be two per 
cent (2%) cash discount ten (10) days e.o.m. Payment may be an- 
ticipated at the rate of six per cent (6%) per annum. No deferred 
datings are permitted except that goods shipped after the twenty- 
fourth (24th) day of any month may be considered as shipped on 
the first (1st) day of the following month. 

(2) Rehates. — The giving or distribution of merchandise gratis in 
any quantity in the form of samples; the absorption of transporta- 
tion costs; the promise to accept and/or the acceptance of merchan- 
dise for credit after the season; the allowance of discounts for adver- 
tising or for payment for space in newspapers, magazines, guides, 
or directories on behalf of any customer to be used in promoting the 
sale of merchandise to the consumer shall be deemed acts of unfair 
competition and are prohibited, except that the furnishing of one 
(1) specimen button, buckle, slide, or ornament of any one (1) color 
to any one (1) customer; the absorption of transportation costs on 
shipments by members of this division of the Trade from point to 
point within the metropolitan area of trade distributing centers, and 
the supplying of advertising cuts and matrices shall, however, not 
be included in such jorohibition. 

(b) Provisions ap])iicable to transactions with retail department, 
dry goods, and trimming stores: 

(1) Terms and Discounts. — The maximum terms of credit by mem- 
bers of this subdivision of the Trade to retail department, dry goods, 
and trimming stores shall be eight percent (8%) cash discount, ten 
(10) days e.o.m. on regular goods and three percent (3%) cash dis- 
count, ten (10) days e.o.m. on pearl goods. Payment may be antici- 
pated at the rate of six percent (6% ) per annum. No deferred dat- 
ings are permitted, except that goods shipped after the twenty- 
fourth (24th) day of any month may be considered as shipped on 
the first (1st) day of the following month. 

(2) Selling on Consignment. — No merchandise shall be shipped on 
memorandum or on consignment for sale by any member of this diAa- 
sion of the Trade to retail department, dry goods, and trimming 
stores; the term "memorandum" and "consignment" to mean that 
no option to return merchandise for exchange or credit shall be gi^-en 



378 

for a period greater than ten (10) days after delivery of the mer- 
chandise except that the Divisional Code Authority/ with the ap- 
pioval of the Adminii?trator, may permit shipments on consignment 
where special circumstances of the Trade require the practice. 

(3) Eehates. — The giving or distribution of merchandise gratis 
in any quantity in the form of samples; the absorption of transpor- 
tation costs; the promise to accept and/or the acceptance of mer- 
chandise for credit after the season ; the giving to resident offices 
or group buying offices of special consideration, secret rebates, or 
advantages greater than tlie discount and terms provided in this 
Code; the allowance of discounts for advertising or for payment for 
space in newspapers, magazines, guides, or directories on behalf of 
any customer to be used in promoting the sale of merchandise to the 
consumer shall be deemed acts of unfair competition and are pro- 
hibited, except that furnishing of one (1) specimeji button, buckle, 
slide, or ornament of any one (1) color to any one (1) customer; 
the absorption of transportation costs on shipments by members of 
this division of the Trade from point to point within the metropoli- 
tan area of trade distributing centers, and the supplying of adver- 
tising cuts and matrices shall, however, not be included in such 
prohibition. 

(c) Provisions applicable, to transactions with chain stores: 

(1) For the purposes of this Code, a "chain store" is defined as 
one of a group of stores of the same ownership all of them selling 
the same articles at the same standard price. 

{'2,) Terms and Discount. — The maximum terms of credit by mem- 
bers of this division of the Trade to chain stores on the sale of 
buttons shall be two per cent (2%) cash discount, ten (10) days 
e.o.m,, F.O.B. point of shipment, and free delivery on shipments 
by members of this division of the Trade from point to point within 
the metropolitan area of trade distributing centers. Payment may 
be anticipated at the rate of six per cent (6%) per annum. 

(3) The maximum terms of credit by members of this division 
of the Trade to chain stores on the sale of slides, buckles, and orna- 
ments shall be two per cent (2%) cash discount, ten (10) days e.o.m., 
F.O.B. point of shipment, and free delivery on shipments by mem- 
bers of this division of the Trade from point to point within the 
metropolitan area of trade distributing centers; or net ten (10) days, 
free delivery. Payment may be anticipated at the rate of six per 
cent (6%) per annum. 

(4) Shipiiients. — All shipments of merchandise by members of this 
division of the Trade to customers shall be as provided in Section 1 
(b) of this Article, or as provided in subdivisions (2) and (3) of 
this Subsection. 

(5) Rebates. — The giving or distribution of merchandise gratis in 
any quantity in the form of samples; the absorption of transporta- 
tion costs; the promise to accept and/or the acceptance of mer- 
chandise for credit after the season; the allowance of discounts for 
advertising or for payment for space in newspapers, magazines, 
guides, or directories on behalf of any customer to be used in pro- 
moting the sale of merchandise to the consumer shall be deemed acis 
of unfair competition and are prohibited, except that the furnishing 
of one (1) specimen button, buckle, slide, or ornament of any one 



379 

(1) color to any one (1) customer; the absorption of transportation 
costs on shipments by members of this division of the Trade from 
point to point within the metropolitan area of trade distributing 
centers, and the supplying of aclvertising cuts and matrices shall, 
however, not be included in such prohibition. 

(d) Provisions applicable to transactions with wholesale, dry 
goods, and notion jobbers, and jobbers in this Trade: 

(1) Terms and Discounts. — The maximum terms of credit by 
members of this division of the Trade to jobbers shall be two per 
cent (2%) cash discount, ten (10) days, sixty (60) days extra. Pay- 
ment may be anticipated at the rate of six per cent (6%) per annum. 

(2) Sam-pies., Savvple Cards, Electros, and Cuts. — The cliarge for 
samples for buttons actually used in selling by the jobbers shall be 
at full selling prices; sample cards and labor on same shall be fur- 
nished to jobbers free of charge. 

Section 3. Provisions applying to transactions with the cutting- 
up trade manufacturing men's and boys' clothing and to transactions 
with tailor trimming jobbers in the Men's Wear Division; 

(a) Terms and Discount. — The maximum terms of credit to cus- 
tomers of members of this Trade shall be net ten (10) days, e.o.m. 
Payment may be anticipated at the rate of six per cent (6%) per 
annum. No deferred datings are permitted, except that goods 
shipped after the twenty-fourth (24th) day of any month may be 
considered as shipped on the first (1st) day of the following month. 

(b) Rebates. — The giving or distribution of merchandise gratis 
in any quantity in the form of samples; the absorption of trans- 
portation costs; the promise to accept and/or the acceptance of 
merchandise for credit after thirty (30) days from date of delivery 
thereof to the customers ; the allowance of discounts for advertising 
or for payment for space in newspapers, magazines, guides, or di- 
rectories on behalf of any customer to be used in promoting the 
sale of merchandise to the consumer are prohibited, except that 
the furnishing of one (1) specimen button or one (1) sample of 
small wear of any one (1) color to any one (1) customer; the ab- 
sorption of transportation costs on shipments by members of this 
Trade from point to point within the metropolitan area of trade 
distributing centers and the supplying of advertising cuts and mat- 
rices shall, however, not be included in such prohibition. 

Article V — Costs and Price Cuttixg - 

Section 1. The standards of fair competition for the Trade with 
reference to pricing practices are declared to be as follows : 

(a) Wilfully destructive price cutting is an unfair method of 
competition and is forbidden. 

(b) When 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 emergenc}^ exists as to any given product, sale below 
the stated minimum price of such product, in violation of Section 2 
hereof, is forbidden. 

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



380 

Section 2. Emergency Provisions. — (a) If the Administrator, 
after investigation, shall at anj^ time find both (1) that an emer- 
gency has arisen within the Trade adversely affecting small enter- 
prises or wages or labor conditions which tend to defeat the pur- 
poses of the Act; and (2) that the determination of the stated mini- 
mum price for a specified product within the Trade for a limited 
period is necessary to mitigate the conditions constituting such 
emergency and to effectuate the purposes of the x\ct, the Divisional 
Code Authority ma}' 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 thereupt)n the Administrator may proceed to determine such 
stated minimum price. 

(b) When the Administrator shall have determined such stated 
minimmn price for a specified product for a stated period, which 
l^rice shall be reasonably calculated to mitigate the conditions of such 
emergenc}' and to effectuate the purposes of the National Industrial 
Recovery Act, he shall publish such price. Thereafter, during such 
stateil period, no member of the Trade shall sell such specified prod- 
ucts 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 Divisional Code Authority may reconnnend review or 
reconsideration or the Administrator may cause any determinations 
hereunder to bo reviewed or reconsidered and appropriate action 
taken. 

Section 3. Co.sf finding. — The Divisional Code Authority shall 
cause to be for]ntdated methods of cost finding and accounting capa- 
ble of use by all members of the Trade, and shall submit such meth- 
ods to the Administrator for review. If approved by the Adminis- 
trator, full information concerning such methods shall be made 
available to all members of the Trade. Thereafter, each member of 
the Trade shall utilize such methods to the extent found practicable. 
Nothing herein contained shall be construed to permit the Divisional 
Code Authority, any agent thereof, or any member of the Trade to 
suggest uniform additions, percentages or differentials or other uni- 
form items of cost which are designed to bring about arbitrary uni- 
formity of costs or prices. 

Artici.k VI — Powi:r of President to IModify 

This Supplemental Code and all the provisions thereof are ex- 
pressly made subject to the right of the President in accordance with 
the provisions of the 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. 

Article VII — Effective Date 

This Supplemental Code shall become effective on the 10th day 
after its approval by the Administrator. 

Approved Code No. 201— Supplement No. 15. 
Registry No. 1612-05. 



Approved Code No. 201 — Supplement No. 16 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

SHEET METAL DISTRIBUTING TRADE 

As Approved on July 27, 1934 



ORDER 



AppRO\aNG Supplementary Code of Fair Competition for the 
Sheet Metal Distributing Trade 

A DIVISION OF the WHOLESALING OR DISTRIBUTING TRADE 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Supple- 
mental Code of Fair Competition for the Sheet Metal Distributing 
Trade to the Code of Fair Competition for the Wholesaling or 
Distributing Trade, and hearings having been duly held thereon and 
the annexed report on said 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 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, however, to the condition that the pro- 
visions of Article IV, Section 1 be deleted from said Code and the 
following provisions substituted therefor : 

"Section 1(a) Destructive price cutting is an unfair method of 
competition and is forbidden. Any sale shall be deemed prhna fade 
destructive price cutting if the net sales price shall be less than the 
seller's net invoice cost plus transportation charges to seller's 
warehouse. 

" Notwithstanding the provisions of this Section any wholesaler 
may sell any article of merchandise at a price as low as the price 
set by any competitor on merchandise which is identical or essen- 
tially the same, where such competitor's price does not violate this 
Section or where such competitor is not subject to the provisions of 
this Supplemental Code. 

(381) 



382 

" Notwithstanding the provisions of this Section it shall not be 
deemed destructive price cutting for a wholesaler to sell the follow- 
ing merchandise at less than net mvoice cost plus transportation 
charges, as provided above: obsolete goods, bona tide cioseout mer- 
chandise, damaged merchandise, stocks being liquidated, merchandise 
sold for charitable purposes or to unemployment relief agencies, and 
such other merchandise as may be designated by the Divisional Code 
Autliority. 

"(b) If the Administrator shall at any time find (1) that an 
emergency has arisen within the trade, adversely affecting small 
enterprises or wages or labor conditions, or tending toward monop- 
oly or other acute conditions which tend to defeat the purposes of 
the Act, and (2) that the finding of a basis for determining mini- 
mum prices for all or any specified products sold by the trade 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 and 
to recommend to the Administrator a basis for determining mini- 
mum prices of said products. Thereupon the Administrator may 
fix a basis for determining the minimum price of any of said prod- 
ucts for a stated period. During such period no member of the trade 
shall sell such products at a net realized price below the minimum 
price determined in accordance with the base so fixed. From time 
to time the Code Authority may recommend review or reconsidera- 
tion or the Administrator may cause any det-ermination hereunder 
to be reviewed or reconsidered, and appropriate action taken." 

Hugh S. Johnson, 
AdTninistrator for Industrial Recovery. 

Approval recommended : 
Robert L. Houston, 

Division Administrator. 
Washington, D. C, 

July 27, 1931t. 



REPORT TO THE PRESIDENT 

The Presidext, 

The White House. 
Sir: This is a report of the Hearing on the Supplemental Code 
of Fair Competition for the Sheet Metal Distributing Trade, con- 
ducted in Room 2062, Department of Commerce Building, Washing- 
ton, D. C, on April 6, 1934. The Supplemental Code which is 
attached was presented by duly qualified and authorized representa- 
tives of the Trade, complying with the statutory requirements, said 
to represent about 68 per cent in number and about 68 per cent in 
volume of sales of the Trade which could be included under this 
Supplemental Code. 

THE TRADE 

The Census of Wholesale Distribution does not separately classify 
this Trade, According to what appear to be carefully and intelli- 
gently compiled statistics furnished by members of the Trade there 
are at the present time 185 concerns engaged in this business. In 
1929 there were approximately 185 concerns so engaged. Total 
annual sales in the Trade in 1929 were about $38,000,000, and em- 
ployees were approximately 5,000 in number. In 1933 sales had 
declined to about $22,000,000, while the number of employees had 
fallen to about 4,500. 

prom:sioxs of the supplemental code 

Since this Code is supplemental to the Code of Fair Competition 
for the Wholesaling or Distributing Trade, it contains no labor pro- 
visions. The provisions containing supplementary definitions are 
inclusive and accurate. 

The supplement to the administrative provisions of the General 
Code establishes a Divisional Code Authority which is fairly and 
adequately representative of all the different elements m the Trade. 
The Constitution and By-laws contain no inequitable restrictions on 
membership. The method provided for the election of the members 
of the Divisional Code Authority adequately protects those members 
of the Trade which are not members of the Association. 

The Trade Practice rules contained in this Supplemental Code are 
not in any respect objectionable and are designed to promote fair 
competition in the Trade. 

FIXDINGS 

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; 

(383) 



384 

I find that— 

(a) Said Supplemental Code is well designed to promote the 
policies and purposes of Title I of the National Industrial Recovery 
Act, including removal of obstructions to the free flow of 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 purposes of cooperative action 
among trade groups, bj^ inducing and maintaining united action of 
labor and management under adequate governmental sanction and 
supervision, by eliminating unfair competitive practices, by promot- 
ing the fullest possible use of the present productive capacity of in- 
dustries, by avoiding undue restriction of production (except as may 
be temporarily required), by increasing the consumption of indus- 
trial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving stand- 
ards of labor, and by otherwise rehabilitating industry. 

(b) Said Trade normally employ's not more than 50,000 employees 
and is not classified b}^ 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 a trade association truly representative of 
the aforesaid Trade ; and that said association imposes no inequitable 
restrictions 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 Avill not operate to discrim- 
inate against them. 

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

For these reasons the Supplemental Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dimnistrator. 
July 27, 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE SHEET METAL DISTRIBUTING TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, this Supplemental Code is established as a Code of Fair 
Competition for the Sheet Metal Distributing Trade pursuant to 
Article VI, Section 1 (c) of the Code of Fair Competition for the 
Wholesaling or Distributing Trade, approved by the President of 
the United States on January 12, 1934. All provisions of the said 
General Code which are not in conflict with the provisions of this 
Supplemental Code are hereby incorporated by reference in this 
Supplemental Code and made a part hereof. Such provisions of the 
General Code together with the supplementing provisions of this 
code are the standards of fair competition for and are binding upon 
every member of said Sheet Metal Distributing Trade. 

Article II — Definitions 

Section 1. The term " Distributor ", as used herein, shall mean 
any individual, partnership, corporation, association, or other form 
of enterprise or definitely organized division thereof, specifically set 
up to render a general distribution service, whose business is selling 
to sheet metal contractors, roofers, fabricators, retailers, industrial, 
and other users; who carries an adequately diversified stock of fer- 
rous and/or ferrous coated sheet metals including, but without limi- 
tation, galvanized sheets, metal roofing and siding, tin plate, sheet 
zinc, and kindred lines defined as eaves trough, conductor pipe and 
elbows, tinners' tools, solder, but not including iron and steel sheets, 
except galvanized sheets; buys such merchandise; warehouses a re- 
serve stock of it for servicing the Trade through salesmen, advertis- 
ing, and/or sales promotion devices; resells it; assumes the credit risk 
and/or such other obligations as are incident to the transportation, 
warehousing and distribution of sheet metals and kindred lines. 
The term shall not include any distributors whose business is prin- 
cipally the distribution of sheet steel seconds. 

Section 2. The term " Divisional Code Authority ". as used herein, 
shall mean the Divisional Code Authority for the Sheet Metal Dis- 
tributing Trade, a Division of the Wholesalinsf or Distributing 
Trade. 

Section 3. The term "General Code", as used herein, shall mean 
the Code of Fair Competition for the Wholesaling or Distributing 
Trade. 

(385) 



Article III — Administration 

SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE 

Section 1. The Divisional Code Authority for the Sheet Metal 
Distributing Trade shall be composed of fifteen (15) members. 

Section 2. The members of such Divisional Code Authority shall 
be elected as follows : 

(a) The Executive Committee of the National Association of 
Sheet Metal Distributors shall nominate as candidates, twenty (20) 
persons from amonu' the members of the Trade who are members of 
the Association. The Administrator shall nominate ten (10) can- 
didates from members of the Trade who are not members of the 
Association. 

(b) The Plxecutive Committee of the Association shall send out to 
all members of the Association, a ballot upon which are listed the 
names of the twent}^ (20) candidates nominated by the Assixiiation. 
At least ten (10) additional blank spaces shall appear on the ballot 
in which a voter may write his personal choices. To each ballot 
shall be attached a letter of assent to and compliance with this Sup- 
plemental Code and the General Code. At the same time, the Execu- 
tive Committee of the Association shall send out to all members of 
the Trade, not members of the Association, w'ho names are discover- 
able after diliaent search, the ballot containing' the ten (10) candi- 
dates nominated by the Administration. At least five (5) addi- 
tional blank spaces shall appear on the ballot in which a voter may 
write his personal choices. To each ballot sliall be attached a letter 
of assent to and compliance w^ith this Supplemental Code and the 
General Code. 

(c) Twenty (20) days after the mailing of these ballots, the Exec- 
utive Committee of the National Association of Sheet Metal Dis- 
tributors shall publicly count the votes which it has received, only 
those ballots being counted which are accompanied b}^ a signed letter 
of assent and compliance. The ten (10) members of the Trade, who 
are members of the Association receiving the highest number of votes 
and the five (5) members of the Trade not members of the Associa- 
tion, receiving the highest number of votes, shall be declared elected 
members of the Divisional Code Authorit3^ 

(d) The Executive Conunittee of the National Association of 
Sheet Metal Distributors shall certify to the Administrator the 
method of conducting the election and the results thereof. 

Section 3. Vacancies in the membership of the Divisional Code 
Authority whether to fill unexpired terms or full nev>^ terms shall be 
filled bj' the same method of election as that provided in Section 2 
of this Article III. 

Section 4. The Divisional Code Authority shall cause to be se- 
lected a Regional Committee of not more than three (3) members 
for each of such regional areas as it may establish to act as its agent 
in handling such matters as may be referred to such Committee 
provided that nothing herein shall relieve the Divisional Code Au- 
thority of any of its responsibilities under tliis Supplemental Code 
or uncler the General Code and provided further that such regional 
committee sliall at all times be subject to and comply with the 
provisions hereof. 



387 

Section 5. The Divisional Code Authority shall have the follow- 
ing duties and powers, in addition to those prescribed in the General 
Code, subject to such rules and regulations as may be issued from 
time to time by the Administrator : 

(a) To adopt by-laws, and rules and regulations for its procedure. 

(b) 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 Divisional 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. 

(c) To organize, elect officers, hire employees, appoint agents, and 
perform such other acts as may be necessary for the proper admin- 
istration of this Supplemental Code and the General Code. 

(d) 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 General Code 
Authority and to the Divisional Code Authority members of the 
Trade subject to this Code shall furnish such statistical information 
as the Administrator may deem necessary for the purposes recited 
in Section 3 (a) of the Act, to such federal and state agencies as he 
may designate; provided that nothing in this Code shall relieve any 
member of the Trade of any existing obligations to furnish reports 
to any government agency. No 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 Adminis- 
trator. 

(e) To appoint a Trade Practice Committee, which shall meet 
with the Trade Practice Committees appointed under such other codes 
as may be related to the Trade (except those appointed by another 
Divisional Code Authority under the General Code) for the pur- 
pose of formulating Fair Trade Practices to govern the relationships 
between production and distribution employers under this Supple- 
mental Code and under such others, to the end that such Fair Trade 
Practices may be proposed to the Administrator as an amendment 
to this Supplemental Code and such other Codes. 

Section 6. Nothing contained in this Supplemental Code shall 
constitute the members of the Divisional Code Authority partners 
for any purpose, nor shall any member or members of the Divisional 
Code Authority or any Regional Committee be liable in any manner 
to anyone for any action or omission to act, under this Supplemental 
Code, except for his own willful malfeasance or nonfeasance. 

Section 7. If the Administrator shall determine that any action 
of the Divisional Code Authority or any agency thereof, may be 
unfair or unjust or contrary to the public interest, the Administrator 
Ta'dj require that ,such action be suspended to afford an opportunity 
for investigation of the merits of such action and for further con- 
sideration by such Divisional Code Authority or agency, pending 
final action, which shall be effective in case the Administrator ap- 
proves 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. 



388 

Section 8. (a) It being found neces3ary in order to support the 
adniinijstration of this Supplemental Code and to maintain the 
standards of fair competition established hereunder and to effectuate 
the policy of the Act, the Divisional Code Authority is authorized: 

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

(3) After such budget and basis of contribution have been 
ajjproved by the Administrator, to determine and obtain equita- 
ble contribution as above set forth by all members of the Trade, 
and to that end, if necessar}'^, to institute legal proceedings 
therefor in its own name. 

(b) Each member of the Trade shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the Divisional Code 
Authority, determined as hereinabove provided, and subject to rules 
and regulations pertaining thereto issued by the Administrator. 
Only members of the Trade complying Avith the Code and contribut- 
ing to the expenses of its administration as hereinabove provided, 
unless duly exempted from making such contribution, shall be en- 
titled to participate in the selection of members of the Divisional 
Code Authority or to receive the benefits of any of its voluntary ac- 
tivities or to make use of any emblem or insignia of the National 
Kecovery Administration. 

(c) The Divisional 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 expendi- 
tures in excess of prior budget estimates except those which the 
Administrator shall have so approved. 

Article IV — Trade Practices 

SUPPLEMENTING ARTICLE A^I OF THE GENERAL CODE 

It shall be an unfair trade practice for any member of the Trade : 
Section 1. (a) To sell or offer for sale any goods at less than the 
cost to the seller. Such cost shall be defined to mean the actual net 
invoiced purchase price or market price whichever is lower plus 
transportation charges to seller's warehouse plus actual wages in- 
volved in the delivery of goods by the seller when determined in 
accordance with an accounting formula developed by an impartial 
agency chosen with the advice of the Administrator and published 
from time to time by the Divisional Code Authority after approval 
by the Administrator. 

(b) Notwithstanding the provisions of this Section, any wholesaler 
may sell any article of merchandise at a price as low as the price set 



389 

by any competitor on merchandise which is identical or essentially 
the same, and ^Yhere such competitor's price does not violate this 
Section or where such competitor is not subject to the provisions of 
this Supplemental Code. 

(c) Ncjtwithstanding the foregoing provisions of this Section a 
wholesaler may sell the following merchandise at less than the prices 
established under the said provisions: obsolete goods, bona fide 
closeout merchandise, damaged merchandise, stocks being liquidated, 
merchandise sold for charitable purposes or to unemployment relief 
agencies, and such other merchandise as the Divisional Code 
Authority may designate.^ 

Section 2. To buy, carry in stock, or sell what is commonly known 
as sheet steel " seconds '', unless plainly stamped " seconds " on each 
sheet and unless invoiced as "" seconds ". 

Section 3. To allow for shipment direct from the mill, terms 
of credit or cash discounts other than those which are received by the 
distributor. 

Article V — Permissive Trade Practices 

SUPPLEMENTING ARTICLE VIII OF THE GENERAL CODE 

Section 1. Within ten (10) days after request to do so by the 
Divisional Code Authority each member of the Trade shall file with 
a confidential and disinterested agent of the Divisional Code Au- 
thority, or if none then with such an agent designated by the Admin- 
istrator, a i^rice schedule for each of such regions as may be desig- 
nated, such identified list to include all of his prices, discounts, 
rebates, allowances and all other terms or conditions of sale herein- 
after in this Article referred to as " price terms ", which lists shall 
completely and accurately conform to and represent the individual 
prices and practices of such member. Such lists shall contain the 
price terms for all such standard products of the Trade as are sold 
or offered for sale by said member and for such nonstandard products 
of said member as shall be designated by the Divisional Code 
Authority. 

Price terms and revised price terms shall become effective im- 
mediately upon receipt thereof by said agent. Immediatel}^ 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 Trade and to all of their customers who have applied therefor 
and have offered to defray the cost actually incurred by the Divi- 
sional 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 Trade and their customers, as aforesaid; provided that prices 
filed in the first instance shall not be released until the expiration of 
the aforesaid ten (10) day period after the request of the Divisional 
Code Authority. The Divisional Code Authority shall maintain a 

^ Amended — See paragraph 2 of order approving this Code. 



390 

permanent file of all price terms filed as herein provided, and shall 
not destro}" any part of such records except upon written consent 
of the Administrator. Upon request the Divisional Code Authority 
shall furnish to the Administrator or anv duly designated agent of 
the Administrator copies of any such lists or revisions of price terms. 

Section 2. When any member of the Trade has filed any revision, 
such member shall not file a higher price within forty-eight (48) 
hours. 

Section 3. No member of the Trade shall sell or offer to sell any 
product of the Trade, for which price terms have been filed pursuant 
to the provisions of this Article, except in accordance with such price 
terms. 

Section 4. No member of the Trade 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 Trade 
to change his price terms b}" 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. 

Section 5, Subject to the approval of the Administrator the 
Divisional Code Authoritj^ may establish for shipment out of ware- 
house, a maximum period of free credit, discount for early payment, 
and rate of interest for invoices not paid in full within such period, 
in accordance with the requirements of the different areas. 

Article VI — Power of President to Modify 

This Supplemental Code and all the provisions thereof are ex- 
pressly made subject to the right of the President in accordance with 
the provisions of the Sub-section (b) of Section 10 of the Act, from 
time to time to cancel or modify any order, approval, license, rules 
or regulations issued under Title I of said Act. 

Article VII — Effective Date 

This Supplemental Code shall become effective on the tenth day 
after its approval. 

Approved Code No. 201 — Supplement No. IG. 
Registry No. 1135-03. 



Approved Code No. 88 — Supplement No. 2 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

FILING SUPPLY INDUSTRY 

As Approved on July 30, 1934 



ORDER 



Supplementary Code of Fair Competition for the Filing Supply 
Industry, a Division of the Business Furniture, Storage Equip- 
ment AND Filing Supply Industry 

An api^lication having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Supple- 
mental Code of Fair Competition for the Filing Supply Industry to 
the 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 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 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; provided, however, that the Provisions of Article VII, 
Section 1, insofar as they prescribe a waiting period between the fil- 
ing with the designated agency and the effective date of revised price 
lists or revised terms and conditions of sale be and they are hereby 
stayed pending my further order either within a period of 60 days 
from the effective date of this Supplemental Code or after the com- 
pletion of a study of open i^rice associations now being conducted 
by the National Recovery Administration. 

Hugh S. Johnson, 
AdmmistratoT for Industrial Recovery. 

Approval recommended : 
C. E. Adams, 

Division Administrator . 

Washington, D.C, 

July 30, 193 Jf. 

80835—34 20 (391) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The proposed Supplemental Code of Fair Competition for 
the Filing Supply Industry was submitted to the Administrator on 
December 4. 1983 by a group of manufacturers engaged in the pro- 
duction of Filing Supplies, representing approximately 85% of the 
total known volume of the ^Members of the Industry engaged in the 
manufacture and national distribution of the products covered by 
said Code. 

A hearing was conducted in Washington on December 20, 1933. 
The Code was revised during the recess and is submitted in its 
present form for approval. Every person who requested an appear- 
ance was properly heard in accordance with statutorj^ and regu- 
latory requirements. 

The Code of Fair Competition for the Filing Supply Industry 
is a supplement to the Code of Fair Competition for the Business 
Furniture, Storage Equipment and Filing Supply Industry, ap- 
proved on November 4, 1933, and its effect on labor and wages was, 
therefore, included in my report to you submitted with the proposed 
Code of Fair Competition for the Business Furniture, Storage 
Equipment and Filing Supply Industry under date of November 2, 
1933. 

RESUME OF CODE 

Article I, Purposes, states the purpose of the Code. 

Article II, Definitions, accurately defines specific terms applicable 
to the Filing Supply Industry as used in this Code. 

Article III, Labor Provisions, adopts the Labor Provisions as 
set forth in Articles V, VI, VII and Exhibit A of the Code of Fair 
Competition of the Business Furniture, Storage Equipment and 
Filing Supply Industry, as approved on November 4, 1933, making 
specific reference to the inclusion of Section 7 (a) of Title I of 
the National Industrial Recovery Act, and further provides for a 
minimum wage rate of 400 per hour for male factory employees and 
35<^ per hour for female factory employees. 

Article IV, Organization, Powers and Duties of Code Committee, 
establishes a Code Authority of seven members to be selected by a 
fair method of election. It further provides that not more than 
three additional members, without vote, may be appointed by the 
Administrator for such terms as he may specify. This Article also 
sets forth the powers and duties of said Code Authority. 

Article V, Planning and Classification, provides that Members of 
the Industry shall make available samples of all Industry Products 
to a Planning and Classification Board and further provides that 
new stock items shall be classified by said Board before presenta- 

(392) 



393 

tion to the general public. This Article, however, in no way restricts 
the manufacture of any Industry Product. 

Article VI, Discrimination, prevents discrimination between 
customers of the same class. 

Article VII, Marketing and Trade Practice Rules, sets forth trade 
practices for the Industry including an Open Price Association. 

Article VIII, Extras and Deductions Not Covered in Price Sched- 
ules, provides that Members of the Industry shall include in their 
prices all costs of additions to and deductions from variations of 
Industry Products not covered in their Price Schedules. 

Article IX, Specials, prevents a manufacturer from pricing a 
special item in competition with a stock item at an unfair price for 
the purpose of evading his then currently effective Price Schedule. 

Article X, Price Increases, provides that the increase in selling 
prices shall be limited, in so far as possible, to actual increases in 
seller's costs. 

Article XI, Monopolies, provides that no provisions of the Code 
shall eliminate, oppress or discriminate against small enterprises. 

Article XII, Modification, makes, all the provisions of the Code 
expressly subject to the right of the President to cancel or modify 
any order, approval, license, rule or regulation issued under Sub- 
section (b) of Section 10 of the Act. 

Article XIII, Termination, provides that the Code shall expire on 
June 16, 1935, or on the earliest date prior thereto on which the 
President or Congress shall by joint resolution declare the emergency 
recognized by Title I of the Act to be ended. 

The Deputy Administrator in his final report to me on said Supple- 
mental 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 
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 organiza- 
tion of Industry for the purpose of cooperative action among the 
trade groups, by inducing and maintaining united action of labor 
and management under adequate governmental sanctions and super- 
vision, by eliminating unfair competitive practices, by promoting the 
fullest possible utilization of the present productive capacity of 
industries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating Industry. 

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

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion subsection (a) of section 3, subsection (a) of section 7, and 
subsection (b) of section 10 thereof, and that the applicant associa- 
tion is an industrial association truly representative of the afore- 



394 

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

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

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

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

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
July 30, 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE FILING SUPPLY INDUSTRY, A DIVISION OF THE 
BUSINESS FURNITURE, STORAGE EQUIPMENT AND 
FILING SUPPLY INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, to supplement and to make specifically applicable the 
provisions of the Code of Fair Competition approved November 4, 
1933, for the Business Furniture, Storage Equipment and Filing 
Supply Industry this Supplemental Code is hereby established as a 
Code of Fair Competition for the Filing Supply Industry and shall 
be the standards of Fair Competition for this Industry and be 
binding upon every member thereof. 

Article II — Definitions 

In addition to the definitions contained in Article II of the Code 
of Fair Competition for the Business Furniture, Storage Equipment 
and Filing Supply Industry the terms enumerated in this article 
shall have the meaning herein defined wherever used in this Code 
or in any supplement appertaining thereto. 

Section 1. The term " Filing Supply Industry " or " Industry " 
as used herein means the manufacture and original sale of industry 
products by a Member of the Industry either by himself or by his 
agent which includes without limitation any person or corporation 
occupying a subsidiary or controlling relationship or one of common, 
mutual or joint ownership or control to a Member of the Industry. 

(a) The term " Industry Product " as used herein includes, with- 
out limitation the products listed under Filing Supply Division in 
Article II of the Code of Fair Competition for the Business Furni- 
ture, Storage Equipment and Filing Supply Industry. 

Section 2. The term " National Emergency Committee " as used 
herein means the National Emergency Committee, the Code Author- 
ity for the Business Furniture, Storage Equipment and Filing 
Suppl}^ Industry, elected pursuant to paragraph 1 of Article III of 
the Code of Fair Competition for the Business Furniture, Storage 
Equipment and Filing Supply Industry as approved on November 
4, 1933, by President Roosevelt. 

Section 3. The term " Exhibit B " wherever mentioned in this 
Supplemental Code means Extiibit B attached to and made a part 
of the Code of Fair Competition for the Business Furniture, Storage 
Equipment and Filing Supply Industry as approved by President 
Roosevelt on November 4, 1933. 

Article III — Labor Provisions 

The provisions governing labor, of the Code of Fair Competi- 
tion for the Business Furniture, Storage Equipment and Filing 

(395) 



396 

Supply Industry, as set forth in Articles V, VI, and VII, and 
Exhibit "A" of said Code, as approved by the President on Novem- 
ber 4, 1933, are made conditions of this Code, including Sections 
(a), (b), and (c) of said Article V, bv which the provisions of 
Subsections (1), (2), and (3) of Section 7 (a) of Title I of the 
Act are made conditions of the Code, are specifically incorporated 
herein and made a part hereof as the Wage, Hour and Labor pro- 
visions of this Code; provided, however, that the minimum rate of 
pay for factory labor under this Code, shall not be less than at the 
rate of forty cents (40^) per hour for male employees and thirty- 
five cents (350) per hour for female employees. 

Article IV — Orgaxization, Powers and Duties of Code Committee 

Section 1. The Code Committee to administer this Code is hereby 
constituted which shall consist of seven (7) voting meml)ers to be 
selected from Members of the Industry. The election of all mem- 
bers of the Code Committee shall be by a fair and equitable method 
of election to be approved by the Administrator. 

Section 2. In addition to the above membership there may be not 
more than three additional members, without vote and without com- 
jDensation from the Industry to be appointed by the Administrator 
to serve for such term from date of appointment as he may specify. 

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

Section 4. In order that the Code Committee 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 Committee 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 
Committee. 

Section 5. Nothing contained in this Code shall constitute the 
members of the Code Committee partners for any purpose, nor shall 
any member, officer, agent, or employee of the Code Committee be 
liable in any manner to anyone for any act of any other member, 
officer, agent, or employee of the Code Committee. Nor shall any 
member of the Code Committee, exercising reasonable diligence in 
the conduct of his duties hereunder, be liable to anyone for any action 
or omission to act under this Code, except for his own willful 
misfeasance or nonfeasance. 

Section 6. Subject to such rules and regulations as may be issued 
by the Administrator, the Code Committee shall have the following 
further powers and duties, the exercise of which shall be reported to 
the Administrator through the National Emergency Committee and 
shall be subject to the Administrator's right on review, to disapprove, 
after such hearing as he may prescribe, any action taken by the 



397 

Code Committee. If the Administrator shall determine at any time 
that any action of the Code Committee or any agency thereof is un- 
fair 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 Committee or agency pending final action which 
shall not be effective unless the Administrator approves or unless he 
shall fail to disapprove after thirty days' notice to him of intention 
to proceed with such action in its original or modified form. 

(a) To make investigations as to the functioning and observance 
of any of the provisions of this Code at its own instance or upon 
the complaint of any person affected and shall report the result 
thereof to the National Emergency Committee. To receive com- 
plaints of violations of this Code or disputes arising thereunder, make 
investigations thereof, jDrovide hearings thereon, adjust such com- 
plaints and bring to the attention of the National Emergency Com- 
n?ittee unadjusted complaints of violations or disputes. 

(b) To aid the National Emergency Committee in the execution 
of the provisions of this Code and provide for the compliance of the 
Industry with the provisions of the Act. 

(c) To adopt By-Laws and Rules and Regulations for its pro- 
cedure and for the administration and enforcement of the Code. The 
Code Committee shall promptly furnish to the Administrator through, 
the National Emergency Committee true copies of the By-Laws, 
Rules, and Regulations adopted pursuant to this paragraph. 

(d) To obtain from Members of the Industry through a con- 
fidential agency (for the purposes of this paragraph the Secretary 
of the Committee may be considered as said agency) such statistical 
information and reports as are required for tlie administration of 
the Code and to provide for submission by Members of the Industry 
of such statistical information and reports as the Administrator may 
deem necessary for the purposes recited in Section 3 (a) of the 
Act, which information and reports shall be submitted b}' Members 
of Industry to such Federal and/or State agencies as the Adminis- 
trator may designate; provided, that nothing in this Code shall 
relieve any Member of the Industry of any existing obligations to 
furnish reports to any Government agency. No individual statis- 
tical reports shall be disclosed to any other ^Member of the Industry 
or any other part}^ except to such confidential agent or to such Gov- 
ernmental agencies as may be directed by the Administrator. 

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

(f) To make recommendations to the National Emergency Com- 
mittee and the Administrator for the coordination of the administra- 
tion of this Code with such other codes, if any, as may be related to 
the Industry. 

(g) To cooperate with tlie Administrator in regulating the use 
of anj^ N R A Insignia by those Members of the Industry who are 
complying with this Code. 



398 

(h) To recommend to the Administrator through the National 
Emergenc}' Committee further fair trade practice provisions to gov- 
ern Members of the Industry in their relations with each other or 
with other industries, and to recommend to the Administrator 
through the National Emergency Committee measures for industrial 
planning, including stabilization of employment. 

(i) To formulate within thirty (30) days after the approval of 
the Code a cost formula subject to the approval of the Administrator 
which cost formuLa shall set forth the items to be included and the 
items to be excluded in arriving at cost as used in this Code. 

(j) To aid the National Emergency Committee in the establish- 
ment of a Planning and Classification Board piu'suant to Article 
VIII of the Code of Fair Competition for the Business Furniture, 
Storage Equipment and Filing Supply Industry. 

Article V — Planning and Classification 

Section 1. In order to effectuate the purpose of Article VIII of 
the Code of Fair Competition for the Business Furniture, Storage 
Equipment and Filing Supply Industry, Members of the Industry 
shall submit a list and make available samples of all items of indus- 
try products now being offered for sale as stock merchandise within 
thirty (30) da3's after the election of the Planning and Classification 
Boaixl to said Board for proper classification and assignment of 
such to their respective industry base products listed in Schedule A 
attached hereto and hereby made a part of this Code. 

Section 2. No stock item not included in the list originally sub- 
mitted by him shall be sold or offered for sale by any member until 
after classification by the Planning and Classification Board, as 
above provided, and approval of said classification by the Code Com- 
mittee, nor until after all requirements for publication contained in 
Article VI hereof have been completely fulfilled. All action under 
this Article shall be taken within thirty (30) days after submission 
by the member. In no event shall this Article be construed as per- 
mitting the Planning and Classification Board to restrict the manu- 
facture of any industry product. 

Article VI — Discrimination 

Section 1. No member shall make any sale, contract of sale, or 
offer of sale, directly or indirectly by any means whatever, of any 
industry products at a price or on terms and conditions more favor- 
able to one purchaser of the same class than to another, whether 
such purchasers shall be private individuals, corporations, or firms, 
or Federal, State, Municipal, or other public bodies; provided that 
this shall not prevent price differences necessarily resulting from 
differences in the model, grade, quantity, or point of delivery of 
the products sold. 

Section 2. No member shall make any purchase of or allowance 
for used industry products in connection with a sale of new industry 
products or as an independent cash transaction, directly or indi- 
rectly, by any means whatever, at a price or on terms and conditions 
more favorable to one seller than to another. 



399 
Article VII — Marketing and Trade Practice Rules 

Section 1. Price Schedules.— {a) Each Member of the Industry 
within thirty (30) days after the effective date of this Code shall 
file with the Code Committee as many copies as the Code Committee 
may require, of price lists and schedules of additions to and deduc- 
tions from base prices at which such member is offering industry 
products for sale as stock merchandise and terms or conditions of 
sale to each of the classes of customers defined in Schedule A which 
is attached hereto and made a part of this Code. 

(b) The original schedules filed in accordance with the above 
paragraph (a) shall become effective on the date of filing thereof 
with the Code Committee. 

(c) The Code Committee forthwith on such original filing shall 
notify all interested Members of the Industry of the contents thereof. 

(d) Any Member of the Industry desiring to change any price or 
prices and/or schedules of additions to and deductions from base 
prices, and/or terms or conditions of sale shall notify the Code 
Authority of such intention by filing a revised schedule, which shall 
become effective ten (10) days thereafter. The revised schedule so 
filed with the Code Committee shall be immediately distributed 
among the interested Members of the Industry who thereupon, at any 
time before the effective date of the revised schedules so filed, may 
file, if they so desire, revisions of their schedules to meet such revi- 
sions in the revised schedule first filed, and which shall become effec- 
tive upon the date the revised schedule first filed becomes effective. 
In the event that any Member of Industry shall not receive within 
the ten (10) day period sufficient notice of the filing by any other 
Member of Industry of revisions in such other Member of Industry's 
price or prices and/or terms or conditions of sale as will enable him 
to meet such revisions of such other member on the effective date 
thereof, then if such member shall file with the Code Committee such 
revisions of his price or prices and/or terms or conditions of sale as 
may be required to meet the revisions filed with such other member, 
"Within 48 hours after the receipt of notice thereof, the revisions so 
filed by such member shall become effective on the same date as the 
revisions of such other member, or if they be already effective shall 
become effective immediately. 

(e) Published or filed prices shall include terms or payment, f.o.b. 
point, or points, of origin or delivery, and such other provisions as 
may be necessary to fully inform the trade and consuming public of 
all conditions of sale. 

(f) Original schedules and all revisions thereof shall be made 
available to the public. 

(g) Subject to the approval of the Code Committee, the Planning 
and Classification Board shall prescribe rules and regulations pro- 
viding for the sale of distress merchandise, surplus inventories, and 
products not up to specification ; and to meet the competition of other 
materials competitive with the products of this Industry, which shall 
become effective upon approval by the Administrator. 

(h) No publication of prices, terms or conditions of sale applying- 
to sales of industry products by one manufacturer to another manu- 
facturer of kindred products for resale by them shall be required. 



400 

Xo such sale, however, shall be made at less than the manufacturer's 
cost as deterniined pursuant to section 6, subsection (i) of Article IV.^ 
Section 2. Trade Practice Rules. — The following trade practices' 
in addition to Exhibit B, are declared to constitute methods of un- 
fair competition between Members of the Industry, and no Member 
of the Industry shall use or engage in any of them, directly or in- 
directl}', through any officer, agent or employee. Engaging in any 
one of such trade practices or of any other practices which hereafter 
may be declared to be unfair methods of competition by the Code 
Committee, approved by the Administrator, shall, after such hear- 
ing or hearings as he may prescribe, be deemed a violation of this 
Code. 

(a) Selling, offering for sale, or participating in any sale of any 
industry product by a Member of the Industry at any price other 
than that set forth in his then currently effective schedule or upon 
any terms or conditions contrary to those contained in such schedule. 

(b) Failing to file such schedules or changes therein, as required 
by Section 1 of this Article. 

(c) Failing to submit the list of stock items of industry products 
being offered for sale by a Member of Industry pursuant to Ar- 
ticle V. 

(d) Selling or offering for sale a stock item not included in the 
original list submitted by a Member of the Industry before classi- 
fication b}^ the Planning and Classification Board pursuant to the 
provisions of Section 2 of Article V. 

(e) Permitting, directly or indirectly, the consummation of any 
sale made with the intent, or having the effect, of violating the 
provisions of the Act or the Trade Practices of this Code. 

(f ) Pricing to the Consumer and/or selling industry products by 
any Member of the Industry at a price below his or its cost as deter- 
mined i^ursuant to paragraph (i), Section 6 of Article IV; provided, 
however, that a member may meet the price of a competitor whose 
price does not violate the Code; and provided further that a member 
mav make such sales as necessary to dispose of distress merchandise 
and/or products not up to specification, pursuant to such rules and 
regulations as issued by the Code Committee under Section 1 (a) of 
this Article. Full information concerning such sales shall be re- 
ported to the Code Authority and to all Members of the Industry. 

(g) Failing to report to the Code Committee within ten (10) days 
after the effective date of this Code all buying contracts or agree- 
ments in force and to publish and make available to all interested 
parties consolidated lists showing discounts, terms and expiration 
dates of such contracts or agreements. 

(h) Promulgating, renewing, extending or automatically con- 
tinuing after the effective date of this Code any buying contracts or 
agreements unless they be firm binding obligations on all parties 
thereto, specifying that applicable discounts and terms of selling as 
filed shall be based upon definite quantities of Industry Products 
delivered within a specified time not exceeding one year. Provided, 
however, that subsections (g) and (h) of this section 2 shall not 
apply to sales made between Members of the Industry, 

1 See paragraph 2 of order approving this Code. 



401 

(i) Falsely marking or labelling any industry product. 

(j) Failing to comply with any rule or regulation of the Code 
Committee promulgated under the powers and duties delegated to 
it by this Code. 

Article VIII — Extras and Deductions Not Covered in Price 

Schedules 

Each Member of the Industry on the basis of cost as determined 
pursuant to paragraph (i), Section 6 of Article IV, shall include 
in his price the minimum additions to and the maximum deductions 
from the base prices of the various lines of industry products, which 
maximum deductions and minimum additions a Member of the In- 
dustry shall use to determine the prices of variations from his base 
products, and make information regarding each such sale available 
to the Code Committee. 

Article IX — Specials 

No item of industry products which is not covered by the pub- 
lished list prices of the manufacturer thereof shall be sold or offered 
for sale in competition with a stock item at net prices, discounts, 
or terms more favorable to the purchaser than the most favorable 
published discounts, terms, or net prices applying to the nearest 
comparable listed stock item. 

Article X — Price Increases 

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

Article XI — Monopolies 

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

Article XI I — Modification 

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

Section 2. Such of the provisions of this Code as are not required 
to be included herein by the Act may with the approval of the Ad- 



402 

ministrator, be amended as provided in Section 3 hereof in such 
manner as may be indicated by the needs of the public, by changes 
in circumstances, or by experience ; all of the provisions of this Code, 
unless so modified or eliminated, shall remain in effect until June 16, 
1935. 

Section 3. An Amendment may be proposed by any interested 
party, either to the National Emergency Committee or directly by 
or to the Administrator. All proposed Amendments shall be re- 
ferred to the Code Authority, who shall give Members of the Indus- 
tr}^ an opportunity to be heard thereon; and thereafter the Code 
Authority shall make such recommendations thereon as is deemed 
proper, provided, however, that when approved by the Adminis- 
trator, as necessary to effectuate the policies of the Act, after such 
notice and hearing as he may prescribe, any proposed Amendment 
shall thereupon become effective as a part of the Code. 

Section 4. The National Emergency Committee may make recom- 
mendations for modifications of this Code to the Administrator 
which shall become effective as a part of this Code upon approval 
by the Administrator after such notice and hearing as he may 
prescribe. 

Abticle XIII — Termination 

This Code and all Supplementary Provisions thereto shall expire 
on June 16, 1935. or on the earliest date prior thereto on which the 
President shall, by proclamation, or the Congress shall, by Joint 
Resolution, declare that the emergency recognized by Title I of the 
Act has ended. 

Approved Code No. 88 — Supplement No. 2. 
Registry No. 1137-03. 



SCHEDULE A 

Filing Supply Division — Divisional Supplemental Code 

industry ease peoducts 

The industry base products are hereby listed graded, and classified as 
follows : 
Product 1. Index cards and record card forms : 
Cards, 3x5 inches — 

100% rag. 

75% rag. 

50% rag. 

25% rag. 

#1 sulphite. 

#2 sulphite. 
Product 2. Vertical letter and card index guides and indexes: 
Vertical file guides. Letter size, %-cut blank — 

25 point Pressboard. 

17 point Manila. 
Card guides, 3x5 inches — 

Bristol, blank. 

25 point Pressboard. 
Product 3. Filing folders, not handfolded and expanding and with open 
ends : 

Letter size — 

1st grade Manila 8 point square cut. 

2d grade Manila 8 point square cut. 

Kraft 8 point square cut. 

Jute or Duracel 8 point square cut. 

Pressboard 25 point square cut. 
MlsceUaneous — 

100 division, not celluloided. 
Product 4. Celluloid index tab strips. 

Note. — Revision of this list may be made from time to time by the Code 
Committee, or by the Administrator in his discretion. 

DEFINITION OF CUST0MB31S 

Retailer (Agent or Dealer) — One who buys direct from manufacturer or 
his jobber for resale solely to consumer and who carries his own stock. 

Jobber — One who maintains an adequate wholesale stock and who buys 
from the manufacturer for resale solely to retailer. 

Jobber Dealer — One who buys from the manufacturer for resale to both 
the retailer and consumer, but who transacts a sufficient volume of legitimate 
jobber business to properly retain this classification. 

Consumer — One who buys direct from manufacturer's agent, dealer, or his 
representative for his own consumption on a one-order-one-delivery basis. 

DISCOUNTS 

The discounts as provided in Article VII allowed to each of the above de- 
fined classes of customers, shall be applied to all list prices published under 
the provisions of said Article, and shall truly represent variance in cost of 
distribution to the ultimate consumer. 



Terms of sale for all industry products shall be as follows : 

Wholesale Sales. — All classes of purchasers — 2 percent 10th prox., net 30th 

prox. 

Retail Sales. — Extension of terms to be not more than 30 days. No discount 

for early payment. 

(403) 



Approved Code No. 88 — Supplement No. 1 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

FIRE RESISTIVE SAFE INDUSTRY 

As Approved on July 30, 1934 



ORDER 



Supplementary Code of Fair Competition for the Fire Resistive 

Safe Industry 

A DI^^SION OF 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 a Supple- 
mental Code of Fair Competition for the Fire Resistive Safe In- 
dustry to the Code of Fair Competition for the Business Furniture, 
Storage Equipment, and Filing Supply Industr}', and hearings hav- 
ing been duly held thereon and the annexed report on said Supple- 
mental 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 hereb}^ 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; provided, however, that the Provisions of Article VII, 
Section 1, insofar as they prescribe a waiting period between the 
filing with the designated agency and the effective date of revised 
price lists or revised terms and conditions of sale be and they are 
hereby stayed pending my further order either within a period of 
60 days from the effective date of this Supplemental Code or after 
the completion of a stud}' of open price associations now being 
conducted by the National Recovery Administration. 

Hugh S. Johnson, 
Adniimsti'ator for Industrial Recovery. 

Approval recommended : 
C. A. Adams, 

D Iv Is ion A dm in is t rat or. 

Washington, D.C, 

Juhj 30, 193k. 

(405) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sie: The proposed Supplemental Code of Fair Competition for 
the Fire Resistive Safe Industry was submitted to the Adminis- 
trator on November 28, 1933, by the Safe iManufacturers National 
Association, representing 85% of the known Members of the Industry. 

A hearing was conducted in Washington on December 20, 1933. 
The Code was revised during the recess and is submitted in its press- 
ent form for approval. Every person who requested an appearance 
was properly heard in accordance with statutor}^ and regulatory 
requirements. 

The Code of Fair Competition for the Fire Resistive Safe Industry 
is a supplement to the Code of Fair Competition for the Business 
Furniture, Storage Equipment, and Filing Supply Industry, ap- 
proved on November 4, 1933, and its effect on labor and wages was, 
therefore, included in my report to 3'ou submitted with the proposed 
Code of Fair Competition for the Business Furniture, Storage 
Equipment, and Filing Supply Industry under date of November 2, 
1933. ^ _ ' 

The following pertinent statistics, however, representing a consoli- 
dation of reports from 25 Members of the Industry, have been sub- 
mitted to the Administration. Sales declined from $7,000,000 in the 
year 1929 to $600,000 in the year 1933, a drop of roughly 91%. The 
number of employees coincidently declined from an average of 2,000 
in the year 1929 to 750 in June 1933, a drop of roughly 63%. Since 
the latter date marked improvement in sales has been experienced, 
totally absorbing the lag and has resulted in the return of many 
employees to the factories. Improvement will further be aided by 
the Fair Trade Practices contained in the Code, which prevent the 
past abuses prevalent in the Industry. 

RESUME or CODE 

Article I, Purposes, states the purpose of the Code. 

Article II, Definitions, accurately defines specific terms applicable 
to the Fire Resistive Safe Industry as used in this Code. 

Article III, Labor Provisions, adopts the Labor Provisions as set 
forth in Articles V, VI, VII, and Exhibit A of the Code of Fair 
Competition of the Business Furniture, Storage Equipment, and 
Filing Supply Industry, as approved on November 4, 1933, making 
specific reference to the inclusion of Section 7 (a) of Title I of the 
National Industrial Recovery Act, and further provides for a mini- 
mum wage rate of 400 for male and female factory employees. 

Article IV, Organization, Powers, and Duties of Code Conunittee, 
establishes a Code Authority of five members to be selected by a fair 

(406) 



407 

method of election. It further provides that not more than three 
additional members, without vote, may be appointed by the Admin- 
istrator for such terms as he may specify. This Article also sets 
forth the i)owers and duties of said Code Authority. 

Article Y, Planning and Classification, provides that Members of 
the Industry shall make available samples of all Industry Products 
to a Planning and Classification Board and further provides that 
new stock items shall be classified by said Board before presentation 
to the general public. This Article, however, in no way restricts 
the manufacture of any Industry Product. 

Article VI, Discrimination, prevents discrimination between cus- 
tomers of the same class. 

Article VII, Marketing and Trade Practice Rules, sets forth trade 
practices for the Industry, including an Open Price Association. 

Article VIII. Extras and Deductions Not Covered in Price Sched- 
ules, provides that Members of the Industry shall include in their 
])rices all costs of additions to and deductions from variations of 
Industry Products not covered in their Price Schedules. 

Article IX, Specials, prevents a manufacturer from pricing a 
special item in competition with a stock item at an unfair price for 
the purpose of evading his then currently effectiA^e Price Schedule. 

Article X, Monopolies, provides that no provisions of the Code 
shall eliminate, oppress, or discriminate against small enterprises. 

Article XI, Price Increases, provides that the increase in selling 
prices shall be limited, insofar as possible, to actual increases in 
seller's costs. 

Article XII, Termination, provides that the Code shall expire on 
June 16, 1935, or on the earliest date prior thereto on which the 
President or Congress shall by joint resolution declare the emergency 
recognized by Title I of the Act to be ended. 

Article XIII, Modification, makes all the provisions of the Code 
expressly subject to the right of the President to cancel or modify 
any order, approval, license, rule, or regulation issued under Sub- 
;section (b) of Section 10 of the Act. 

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 
policies and purposes of Title I of the National Industrial Recov- 
ery Act, including removal of obstructions to the free flow of inter- 
state and foreign commerce which tend to diminish the amount 
thereof and will provide for the general welfare by promoting the 
organization of Industry for the purpose of cooperative action among 
the trade groups, by inducing and maintaining united action of labor 
and management under adequate governmental sanctions and super- 
vision, by eliminating unfair competitive practices, by promoting 
the ftdlest 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. 

80835—34 21 



408- 

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

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

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

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

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

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dnrdnistrator. 
July 30, 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE FIRE RESISTIVE SAFE INDUSTRY 
a division of the business furniture, storage equipment, and filing 

supply industry 

Article 1 — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, to supplement and to make specifically applicable 
the provisions of the Code of Fair Competition, approved November 
4, 1933, and amended June 15, 1934, for the Business Furniture, 
Storage Equipment, and Filing Supply Industry this Supplemental 
Code is hereby established as a Code of Fair Competition for the 
Fire Resistive Safe Industry and shall be the standards of Fair 
Competition for this Industry and shall be binding upon every 
member thereof. 

Article II — Definitions 

In addition to the definitions contained in Article II of the Code 
of Fair Competition for the Business Furniture, Storage Equip- 
ment, and Filing Supply Industry, the terms enumerated in this 
Article shall have the meaning herein defined wherever used in this 
Code or in any supplement appertaining thereto. 

Section 1. The term '' Fire Resistive Safe Industry " or " Indus- 
try " as used herein means the manufacture and original sale and/or 
wholesale distribution of industry products bj^ a Member of the 
Industry, either by himself or by his agent. Avhich includes without 
limitation any person or corporation occupying a subsidiary or con- 
trolling relationship or one of common, mutual, or joint ownership 
or control to a Member of the Industry. 

(a) The term " Industry Product " as used herein includes with- 
out limitation the products listed under Fire Resistive Safe Divi- 
sion in Article II of the Code of Fair Competition for the Business 
Furniture, Storage Equipment, and Filing Supply Industry. 

Si:c. 2. The term '* Wholesale Distribution " as used herein means 
and includes the distribution by all those engaged in the sale and 
delivery of Industry products, both for resale to the consumer 
thereof, who maintain at least five (5) salesrooms and two ware- 
houses. 

Sec. 3. The term " Stock Items " as used herein means an industry 
product which is offered for general use. 

Sec. 4. The term " Bureau of Standards Certification " as applied 
to any industry product means that said product is certified to have 
been built in accordance with Federal Specifications AA-S-81. 

Sec. 5. The term " Manufacturers Certification " as applied to any 
product means tliat said product has been built by a member of 

(409) 



410 

the Iiuliistrv and classitied by the Phniiiin<>' and Chisslfication 
Board in accordance with the classifications specified in Section 3 of 
Article VII. 

Sec. G. The term " National Emergency Committee '' as used herein 
)nean>- the National Enierfjency Committee, the Code Autliority for 
the Business Furniture, Stora'ie Equipment, and Filing Supply In- 
dustry, elected j)ursuant to paragraph 1 of Article III of the Code 
of Fair Competition for the Business Furniture, Storage Equipment, 
and Filing Sui)ply Industry as approved on November 4, 1933, by 
President Roosevelt. 

Sec. 7. The term " Exhibit B " wherever mentioned in this Sup- 
plemental Code means P^xhibit B attaclied to and made a part of the 
Code of Fair Competition for the Business Furniture, Storage 
EquipnuMit. and Filing Supply Industry as approved by President 
Koosevelt on November 4, 1933. 

Article III — Laror Provisions 

The provisions governing labor, of the Code of Fair Competition 
for the Business Furniture. Storage Equipment, and Filing Supply 
Industry, as set forth in Articles V, VI, and VII, and Exhibit A of 
said Code, as approved by the President on November 4. 1933, are 
nuide conditions of this Code, including Sections (a), (b), and (c) 
of said Article V, by which the provisions of Subsections (1), (2), 
and (3) of Section 7 (a) of Title I of the Act are made conditions 
of the Code, are specificalh' incorporated herein and nuide a part 
hereof as the Wage. Hour, and Labor provisions of this Code; pro- 
vided, however, that the minimum rate of pay for both nuile and 
female factory employees, under this Code, shall be at the rate of 
forty cents (40^) per hour. 

Article IV — Organization, Powers, and Duties or Ccde 

Committee 

Section 1. The Code Committee to administer this Code is hereby 
constituted, which shall consist of five (5) voting members to be 
selected from Members of the Industry. The election of all mem- 
bers of the Code Committee shall be by a fair and equitable nu^thod 
of election to be approved by the Administrator. 

Sec. 2. In addition to the above membership, there may be not 
more than thi'ee additioiuil members, without vote and without com- 
pensation from the Industry, to be appointeil by the Athninistrator 
to serve for such term from date of appointment as he may specify. 

Sec. 3. Each trade or industrial association directly or indirectly 
]>articii)ating in the selection or activities of the Code Committee 
shall (1) impose no inequitable restrictions on membershij), and (2) 
submit to tlie Administrator true copies of its articles of association, 
by-laws, rules, and regulations and any Amendments when made 
thereto, together with such other information as to membership, or- 
ganization, and activities as the Adnunistrator may deem necessary 
to eifectuate the purposes of the Act. 

Sec. 4. In order that the Code Committee shall at all times be truly 
representative of the Industry and in other respects comply with 



411 

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 Committee is not truly representative or does not in other re- 
spects comply with the provisions of the Act, may require an ap- 
propriate modification in the method of selection of the Code 
Committee. 

Sec. 5. Nothing contained in this Code shall constitute the mem- 
bers of the Code Committee partners for any purpose. Nor shall any 
member, officer, agent, or employee of the Code Committee be liable 
in any manner to anyone for any act of any other member, officer, 
agent, or employee of the Code Committee. Nor shall any member of 
the Code Committee, exercising reasonable diligence in the conduct 
of his duties hereunder, be liable to anyone for any action or omission 
to act under this Code, except for his own willful misfeasance or 
nonfeasance. 

Sec. 6. Subject to such rules and regulations as may be issued by 
the Administrator, the Code Committee shall have the following 
further powers and duties, the exercise of which shall be reported 
to the Administrator through the National Emergency Committee 
and shall be subject to the Administrator's right, on review, to dis- 
approve, after such hearing as he may prescribe, any action taken 
by the Code Committee. If the Administrator shall determine at 
any time that any action of the Code Committee or any agency 
thereof is unfair or unjust or contrary to the jiublic interest, the 
Administrator ma}' require that such action be suspended to afford 
an opportunity for investigation of the merits of such action and 
further consideration by such Code Committee or agency pending 
final action which shall not be effective unless the Administrator 
approves or unless he shall fail to disapprove after thirty days' 
notice to him of intention to proceed with such action in its original 
or modified form. 

(a) To make investigations as to the functioning and observance 
of any of the provisions of this Code at its own instance or upon the 
complaint of any person affected and shall report the resu.lt thereof 
to the National Emergency Committee. To receive complaints of 
violations of this Code or disputes arising thereunder, make investi- 
gations thereof, provide hearings thereon, adjust such complaints, 
and bring to the attention of the National Emergency Committee 
unadjusted complaints of violations or disputes. 

(b) To aid the National Emergency Committee in the execution 
of the provisions of this Code and provide for the compliance of 
the Industry with the provisions of the Act. 

(c) To ado})t Bylaws and Rules and Regulations for its procedure 
and for the administration and enforcement of the Code. The Code 
Committee shall promptly furnish to the Administrator through 
the National Emergency Committee true copies of the Bylaws, 
Rules, and Regulations adopted pursuant to this paragraph. 

(d) To obtain from Members of the Industry through a confiden- 
tial agency (for the purposes of this paragraph the Secretary of the 
Committee may be considered as said agency) such statistical infor- 
mation and reports as are required for the administration of the 
Code and to provide for submission by Members of the Industry of 



412 

such statistical information and reports as the Administrator may 
deem necessary- for the purposes recited in Section 3 (a) of the Act, 
which information and reports shall be submitted bj^ Members of 
Industry to such Federal and/or State agencies as the "IVdministrator 
may designate; provided, that nothing in this Code shall relieve any 
Member of the Industry of any existing obligations to furnish re- 
ports to any Government agency. No individual statistical reports 
shall be disclosed to any other Member of the Industry or any other 
party except to such confidential agent or to such Governmental 
agencies as may be directed by the Administrator. 

(e) To use such trade associations and other agencies as it deems 
proi>er for the carrying out of any of its activities provided for 
herein, provided that nothing herein shall relieve the Code Com- 
mittee of its duties or respo;;sibilities 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 nuike reconnnendations to the National Emergenc}- Com- 
mittee and the Administrator for the coordination of the adminis- 
tration of this Code with such other codes, if any, as may be related 
to the Industry. 

(g) To cooperate with the Administrator in regulating the use 
of any N.R.A. insignia solely by those Members of the Industry 
who are comi)lying Avith this Code. 

(li) To recommend to the Administrator through the National 
Emergency Committee further fair trade practice provisions to 
govern Members of the Industry in their relations with each other 
or with other industries, and to recommend to the Administrator 
through the National Emergency Committee measures for indus- 
trial planning, including stabilization of employment. 

(i) To formulate within thirty (30) daj^s after the approval of 
the Code a cost formula subject to the approval of the Administrator 
which cost fornuda shall set forth the items to be included and the 
items to be excluded in arriving at cost as used in this Code. 

(j) To aid the National Emergency Committee in the establish- 
ment of a Planning and Classification Board pursuant to Article 
VIII of the Code of Fair Competition for the Business Furniture, 
Storage Equijiment, and Filing Supply Industry. 

Article V — Planning and Classification 

Section 1. In order to effectuate the purpose of Article VIII of 
the Code of Fair Competition for the Business Furniture, Storage 
Equipment, and Polling Supply Industry, Members of the Industry 
shall submit a list of all items of industry products now being 
offered for sale as stock merchandise within thirty (30) days after 
the election of the Planning and Classification Board to said Board 
for proper classification and assignment of such to their respective 
industry base products listed in Schedule A attached hereto and 
hereby made a part of this Code. 

Sec. 2, No stock item not included in the list origiiudly submitted 
b}'' him shall be sold or offered for sale by any member until after 
classification by the Planning and Classificati(m Board, as above 
provided, and approval of said classification by the Code Committee, 



413 

nor until after all requirements for publication contained in Article 
VII hereof have been conijDletely fulfilled. All action under this 
Article shall be taken within thirty (30) days after submission by 
the Member. In no event shall this Article be construed as per- 
mitting the Planning and Classification Board to restrict the Manu- 
facture of any industry product. 

Article VI — Disci!Imination 

Section 1. Xo member shall make any sale or contract of sale, or 
offer of sale, directly or indirectly by any means Avhatever, of any 
industry products at a price or on terms and conditions more favor- 
able to one purchaser of the same class than to another, whether such 
purchasers shall be private individuals, corporations, or firms, or 
Federal, State, Municipal, or other public bodies; provided that this 
shall not prevent price differences necessarily resulting from differ- 
ences in the model, grade, quantity, or point of delivery of the 
products sold. 

Sec. 2. No member sliall make any purchase of or allowance for 
used industry products in connection with a sale of new industry 
products or as an independent cash transaction, directly or indirectly, 
by any means whatever, at a price or on terms and conditions more 
favorable to one seller than to another. 

Article VII — Marketing and Trade Practice Rules 

Section 1. Price Schedules. 

(a) Each Member of the Industry within thirty (30) days after 
the effective date of this Code shall file with the Code Committee as 
many copies as the Code Committee may require of schedules con- 
taining price lists at which such member is offering industry products 
for sale as stock merchandise and terms or conditions of sale to the 
classes of customers defined in Schedule A which is attached hereto 
and made a part of this Code. 

(b) The original schedules filed in accordance with the above para- 
graph (a) shall become effective on the date of filing thereof with 
the Code Committee. 

(c) The Code Committee forthwith on such original filing shall 
notify all known Members of the Industry of the contents thereof. 

(d) Any Member of the Industry desiring to change any price 
or prices and/or terms or conditions of sale shall notify the Code 
Committee of such intention by filing a revised schedule, which shall 
become effective ten (10) daj's thereafter. The revised schedule so 
filed with the Code Committee shall be immediately distributed 
among the known Members of the Industry, who thereupon, at any 
time before the effective date of the revised schedules so filed, may 
file, if they so desire, revisions of their schedules to meet such revi- 
sions in the revised schedule first filed, and which shall become effec- 
tive upon the date the revised schedule first filed becomes effective. 
In the event that any Member of Industry shall not receive within 
the ten (10) day period sufficient notice of the filing by any other 
Member of Industry, of revisions in such other Member of Industry's 
price or prices and/ or terms or conditions of sale as will enable him 



414 

to meet such revisions of such other member ou the effective date 
thereof, then if such member shall file with the Code Couiuiittee such 
revisions of his price or prices and or terms or conditions of sale a& 
may be required to meet the revisions tiled by such other member 
"within 48 hours after the receipt of notice thereof, the revisions so 
filed by such member shall become effective on the same date as the 
revisions of such other member; or if they be alread}' effective, shall 
become effective immediately. 

(e) Filed prices sliall include terms of pa^'ment, length of book- 
ings or contracts, and f.o.b. point or points of origin or delivery, 
and such (jther provisions as nuiy be necessary to fully inform the 
trade and consuming public of all conditions of sale. 

(f) Original schedules and all revisions thereof shall be made- 
available to the public. 

(g) Sul)ject to the approval of the Code Connnittee, the Planning; 
and Classification Board shall i)rescribe rules and regulations pro- 
viding for the sale of destandardized or obsolete products which 
shall become effective upon approval by the Administrator, and no 
current line shall be designated or sold as destandardized or obsolete 
unless iji fact such line has been discontinued. 

(h) Xo publication of ])rices, terms, or conditions of sale applying; 
to sales of industry products by one manufacturer to a wholesale 
distributor, or to another numufacturer of kindred products for 
resale b}'^ them, shall be required. No such sale, however, shall be 
made at less than the manufacturer's cost as determined pursuant 
to section 6, subsection (i) of Article IV.^ 

Sec. 2. Trade Practice Rules. 

The following trade practices in addition to Exhibit B are de- 
clared to constitute methods of unfair comi)etition between Members 
of the Industry, and no Member of the Industry shall use or engage 
in any of them, directly or indirectly, through any officer, agent, or 
emploj^ee. Engaging in any one of such trade practices or of any 
other practices which hereafter may be declared to be unfair methods 
of competition by the Code Committee, approved by the Adminis- 
trator, shall, after such hearing or hearings as he may prescribe^ 
be deemed a violation of this Code. 

(a) Selling, offering for sale, or participating in any sale of any 
industrj' product by a Member of the Industry at any ];)rice other 
than that set forth in his then currently effective schedule or upon 
any terms or conditions contrary to those contained in such 
schedule. 

(b) Failing to file such schedules or changes therein, as required 
by Section 1 of this Article. 

(c) Failing to submit the list of stock items of industry products 
being offered for sale by a Member of Industry pursuant to. 
Article V. 

(d) Selling or offering for sale a stock item not included in the 
original list submitted by a Member of the Industry before classifica- 
tion by the Plaiming and Classification Board pursuant to the pro- 
visions of Section 2 of Article V. 



> See paragraph 2 of order approving tbis Code. 



415 

(e) Permitting, directly or indirectly, the consummation of any 
sale made with the intent, or having the effect, of violating the 
provisions of the Act or the Trade Practices of this Code. 

(f ) Pricing to the Consumer and/or selling industry products by 
any Member of the Industry at a price below his or its cost as de- 
termined pursuant to paragraph (i). Section 6, of Article IV; pro- 
vided, however, that a member may meet the price of a competitor 
whose price does not violate the Code; and provided further that a 
member may make such sales as necessary to dispose of destandard- 
ized or obsolete merchandise or products, pursuant to such rules and 
regulations as issued by the Code Committee under Section 1 (g) 
of this Article. Full information concerning such sales of de- 
standardized or obsolete products shall be made available to the 
Code Committee and to all Members of the Industry. 

(g) Promulgating, renewing, extending, or automaticall}^ con- 
tinuing after the effective date of this Code any buying contracts or 
agreements unless they be firm binding obligations on all parties 
thereto, specifying that applicable discounts and terms of selling as 
filed shall be based upon definite quantities of industry products 
delivered within a specified time not exceeding one year. Provided, 
however, that Subsections (g) and (h) of this Section 2 shall not 
apply to sales made between Members of the Industry. 

(h) Failing to file within ten (10) days after the effective date of 
this Code all other existing buying arrangements containing terms 
contrary to the provision of this Code. 

(i) Falsely marking or labelling any industry product. 

(j) Representing to a prospective purchaser that a Fire Resistive 
Safe is " indestructible " or " Never needs replacement " or similar 
statements which are untrue, or unfair to the public, or create a false 
;sense of permanent security. 

(k) Defaming his competitors or their products by advertising, 
exhibition, or publishing information in any form of alleged or 
actual failure of such competitors' products. 

(1) Selling any industry product with any responsibility except 
that for one year a Member of the Industry' may be responsible for 
defective materials and workmanship, but such responsibility shall 
only apply in the event that the part of the equipment involved has 
not been serviced or altered by any others than the Member of the 
Industry who sold such product. 

(m) Claiming that a Classified industry product gives more pro- 
tection than that specified by said classification. 

(n) Failing to comply with any rule or regulation of the Code 
Committee promulgated under the powers and duties delegated to 
it by this Code. 

Section 3. As certain grades of fire resistance, as classified here- 
after, have been set up by the U.S. Bureau of Standards, the Under- 
writers Laboratories, and the National Fire Protection Association, 
which classifications have been adopted by the Industry as its 
standards, it shall be an unfair method of competition to offer for 
sale or to sell, except as herein provided, any industry product unless 
it has a label of permanent nature applied to the outside face of said 
safe or container or to the inside face of outer door, properly classi- 
fying it in one of the following groups : 



416 

CLASS A OR FOUR-HOUR SAFES 

Safes bearing Underwriters', Bureau of Standards', or Manufac 
turers' certification for four-hour fire protection with or without 
Underwriters' T-20 burghiry or relocking hibel. 

CLASS B OR TWO- II OUR SAFES 

Safes bearing Underwriters", Bureau of Standards", or Manufac- 
turers' certification for two-hour fire protection, with or without 
Underwriters T-20 burglary or relocking Label. 

CLASS C OR ONE-HOUR SAFES 

Safes bearing Underwriters'. Bureau of Standards, or Manufac- 
turers' certification for one-hour protection. 

IXSPECTEn IXSULATEI) OR 4r)-MIXUTE SAFES 

Safes bearing Underwriters', Bureau of Standards', or Manufac- 
turers' certification for 4o-minute protection. 

INSULATED SAFES OR CONTAINERS AFFORDING LESS THAN 4 5 MINUTES 

CERTIFIED PROTECTION 

Such safes or containers must bear a label " Not intended to pro- 
tect valuable documents and records." 

CONTAINERS NOT INTENDED FOR FIRE PROTECTION 

These must bear the following label : '' This Container Not in- 
tended for Fire Protection." 

INSULATI:D filing cabinets (safe FILES OR FIRE FILES), INSULATED 
TRAYS, INSULATED RECORD DESKS, AND LIGHT INSULATED CONTAINERS 
WITH OR WITHOUT HORIZONTAL SLIDE-IN DOORS 

Such products are not regarded as competitive with safes as they 
serve an entirely different purpose. Such products must bear a label 
indicating their degree of fire protection. 

Vault doors have likewise been classified and shall be labelled as 
follows : 

INSULATED VAULT DOORS BEARING UNDERWRITERS' OR MANUFACTURERS' 
CERTIFICATION (NOT INCLUDING BANK AND SECURITY VAULT DOORS) 

Vault doors bearing Underwriters' or Manufacturers' certification 
for six hours. 

Vault doors bearing Underwriters' or Manufacturers' certification 
for four hours. 

Vault doors bearing Underwriters or Manufacturers' certification 
for two hours. 

Vault doors bearing Underwriters or ]\taiuifacturers' certification 
for one hour. 



417 

Vault doors bearing Underwriters or Manufacturers' certification 
for half hour. 

UNINSULATED PLATE TYPE VAULT DOOR (NOT INCLUDING BANK AND 

SECURITY VAULT DOORS) (NOT INCLUDING VAULT DOORS SOLD TO THE 

UNITED STATES GOVERNMENT) 

As uninsulated plate t3'pe vault doors are not intended for fire 
protection of valuable records, documents or merchandise, they shall 
be labelled as follows : '•' Not insulated for fire protection." 

All other stock items shall be properly classified in accordance 
Avith their resistive qualities by the Planning and Classification 
Board of the Industry and be labelled accordingly. 

Nothing contained in the above list of Unfair Trade Practices 
shall in an}' mamier affect or interfere with the making of quota- 
tions or the manufacture under contract of Industry products, in 
accordance Avith Federal, State, Municipal or private specifications, 
])rovided, however, that such Industr}^ products shall not be sold 
or offered for sale as a substitute for. or in competition with Industry 
products of the standard classifications as above set forth. 

Article YIII — Extras and Deductions Not Covered in Price 

Schedules 

Each member of the Industiy on the basis of cost as determined 
pursuant to paragraph (i). Section 6 of Article IV, shall include 
in his price the minimum additions to and the maximum deductions 
from the base prices of the various lines of industry products, which 
maximum deductions and minimum additions a member of the In- 
dustry shall use to determine the prices of variations from his base 
products, and make information regarding each such sale available 
to the Code Committee. 

Article IX — Specials 

No item of industry products which is not covered by the pub- 
lished list prices of the manufacturer thereof shall be sold or offered 
for sale in competition with a stock item at net prices, discounts, or 
terms more favorable to the purchaser than the most favorable pub- 
lished discounts, terms, or net prices applying to the nearest com- 
parable listed stock item. 

Article X — Monopolies 

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

Article XI — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made more difficult of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price in- 
creases except such as may be required to meet individual cost should 



418 

be delayed, but when made such increases should, so far as possible, 
be limited to actual additional increase in the seller's costs. 

Article XII — Termination 

This Code and all Supplementary Provisions thereto shall expire 
on June 16, 1935, or on the earliest date prior thereto on which the 
President shall by proclamation, or the Congress shall by Joint 
Resolution, declare that the emergency recognized by Title 1 of the 
Act has ended. 

Article XIII — Modification 

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

Sec. 2. Such of the provisions of this Code as are not required 
to be included herein by the Act nuiy with the approval of the Ad- 
ministrator be amended as provided in Section 3 hereof in such 
manner as may be indicated by the needs of the public, by changes in 
circumstances, or by ex])erience ; all of the provisions of this Code, 
unless so modified or eliminated, shall remain in effect until June 
16, 1935. 

Sec. 3. An Amendment may be proposed by any interested party, 
either to the Code Committee or directly by or to the Administrator. 
All projiosed Amendments shall be referred to the Code Committee, 
who shall give Members of the Industry an opportunity to be heard 
thereon: and thereafter the Code Counnittee shall make such rec- 
ommendations thereon as is deemed pro]:)er; provided, however, that 
when ;ij)proved by the Administratoi', as necessary to effectuate the 
policies of the Act, after such notice and hearing as he may prescribe, 
any proposed Amendment shall thereupon become effective as a 
part of the Code. 

Sec. 4. The Code Committee may make recommendations for 
modifications of this Code to the Administrator which shall become 
effective as a part of this Code upon approval by the Administrator 
after such notice and hearing as he may |3rescribe. 

Approved Code No. 88— Supplement No. 1. 
Registry No. 1133-16. 



SCHEDULE A 

Fire Resistive Saie Division Supplemental Code 

inuustuy 13ase products 

The Industry bas^e products are hereby listed as follows : 
Fire Resistive Safes 

Insulated Vault Doors (not including l)ank and security vault doors) 
Insulated Filing Cabinets (siiife liles or lire filee) 
Insulated Trays 

Light Insulated Containers with or without horizontal slide-in doors 
Containers not intended for fire protection 
Uninsulated Plate Type Vault Dooi's (not including bank and security 

vault doors) 
Insulated Record Desks 
Safe Interiors 
Burglary and robbery resistive eliests and lockers (except for bank use) 

Revision of this' list may be made from time to time by the Code Committee or 
by the Administrator at his discretion. 

DEFINITION OF CUSTOMERS 

ExGlusire Dealer. — An exclusive dealer is a retailer (individual, firm, or 
corporation) with whom a member of the Industry has a written agreement 
giving the dealer : 

(1) Sole selling rights of all or part of his line in a defined territory. 

(2) Assistance in actual resiale of merchandise. 

(3) Complete complement of literature, advertising aids, etc., necessary for 
promotion of resale of merchandise covered, and giving the member of the 
Industry : 

( a ) Ample display representation ; 

(b) Ample stock representation; 

(c) Exclusive sales representation; 

(d) Complete co-operation in maintaining selling policies of the member of 
the Industry. 

Ko)i-Exclusii>e Dealer. — A non-exclusive dealer is a ret.iiler (individual, firm, 
or corporation) wbo maintains a place of business for the resale of industry 
products. 

Retail Buyers. — A retail buyer is a purchaser of definite quantities of Indus- 
try products for his use and consumption and not for resale. 

Jobber. — A jobber is anyone who engages in the sale of industry products 
at retail or to retailers, but who does not maintain more than four salesrooms 
and one warehouse. 

Broken^. — A broker is anyone, other than above defined, who purchases. 
Industry Products for resale at retail. 

DISCOUNTS 

The discounts as provided in Article VII allowed to each of the above-defined 
classes of customers shall be applied to all list prices published under the provi- 
sions of said Article, and shall truly represent variance in cost of distribution 
to the ultimate consumer. 



Terms of sale for all Industry Products shall be as follows: 

(1) ^Vholesale Sale-"!. — All classes of purchases, 2% — 10th prox. net 30th prox.. 

(2) Retail Hales. — No discount for cash. 

(3) Deferred Bailments. — Maximum, 12 months, with down payment of 10%> 
with order and 109J: on delivery and 6% to be cbarged on deferred payments. 

(419) 



Approved Code No. 84 — Supplement No. 44 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

PULP AND PAPER MILL WIRE CLOTH 
MANUFACTURING INDUSTRY 

As Approved on July 30, 1934 



ORDER 



Approving Supplejientary Code of Fair Competition for the Pulp 
AND Paper Mill Wire Cloth Manufacturing Indusit^y 

A division of the fabricated metal products manufacturing and 

METAL FINISHING AND METAL COATING INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, and in accordance with the 
provisions of Section I of Article VI of the Basic Code for the Fabri- 
cated Metal Products Manufacturing and Metal Finishing and Metal 
Coating Industry, approved November 2, 1933, for approval of a 
Supplementary Code of Fair Competition for the Pulp and Paper 
Mill Wire Cloth Manufacturing Industry, and hearing having been 
duly held thereon; and the annexed report on said Supplementary 
Code, containing findings with respect thereto, having been made and 
directed to the President : 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division A dmin istra t or. 

Washington, D.C, 

July 30^ 193^. 

(421) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the Supplementary Code of Fair Compe- 
tition for the Pulp and Paper Mill Wire Cloth Manufacturing Indus- 
try, a division of the Fabricated Metal Products Manufacturin*]^ and 
Metal Finishing and Metal Coating Industry, the hearing having 
been conducted thereon in Washington, D.C.. February IG, 1934, in 
accordance with the provisions of Title I of the National Industrial 
Recovery Act. 

GENERAL STATEMENT 

The Pulp and Paper Mill Wire Cloth Manufacturing Industry,, 
being truly representative of this division of the Fabricated Metal 
Products Manufacturing and Metal Finishing and Metal Coating 
Industry, has elected to avail itself of the option of submitting a 
Supplementarv Code of Fair Competition, as provided for in Section 
1 of Article VI of the Basic Code, for the Fabricated Metal Prod- 
ucts Manufacturing and Metal Finishing and Metal Coating Indus- 
trj'^ approved by you on the second day of November, 1933. 

RESUME OF THE CODE 

Article I states the purpose of the Supplementary Code. 

Article II accurately defines specific terms employed in the Supple- 
mentary Code. 

Article III : This Industry is a division of the Fabricated Metal 
Products Manufacturing and Metal Finishing and Metal Coating 
Industry and the labor provisions of its Basic Code, as approved 
November 2, 1933, are the labor provisions of this Supplementary 
Code. 

Article IV establishes a Supplementary Code Authority consisting: 
of seven (7) members to be elected by the members of the Industry 
at a meeting called by the Temporary Supplementary Code Com- 
mittee, and gives the Administrator the authority to appoint one 
additional member without vote and provides machinery for obtain- 
ing statistics and the administration of the Supplementary Code. 

Article V provides for an accounting system and methods of cost 
linding and/or estimating. 

Article VI provides against selling below allowable cost as ileter- 
mined by a uniform method of costing. 

Article VII provides for methods of setting up and revising price 
lists. 

Article VIII sets forth the unfaii' trade practices of this Supple- 
mentary Code which has been especially designed to offset unfair- 
competition in this division of the Industry. 

(422) 



423 

Article IX provides against monopolies and monopolistic practices. 

Article X contains the mandatory provisions contained in Section 
10(b) and also provides for the submission of proposed amendments 
to the Supplementary Code. 

Article XI recognizes that price increases be limited to actual 
additional increases in the seller's costs. 

Article XII states the effective date and duration of this Supple- 
mentary Code. 

FINDINGS 

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

I find that: 

(a) Said Supplementary Code is well designed to promote the 
policies and purposes of Title I of the National Industrial Recovery 
Act, including removal of obstructions to the free flow of interstate 
and foreign commerce which tend to diminish the amount thereof 
and will provide for the general welfare by promoting the organiza- 
tion of industry for the purposes of cooperative action among the 
trade groups, by inducing and maintaining united action of labor 
and management under adequate governmental sanctions and super- 
vision, by eliminating unfair competitive practices, by promoting the 
fullest possible utilization of the present productive capacity of in- 
dustries, by avoiding undue restriction of production (except as may 
be temporarily required), by increasing the consumption of 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 ehiplo3^s not more than 50,000 em- 
ployees: and is not classified by me as a major industry. 

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

(d) The Supplementary Code is not designed to and will not per- 
mit monopolies or monopolistic practices. 

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

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

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

Respectfully, 

Hugh S. Johnson, 

Adimnistrator. 
July 30, 1934. 

80835—34 22 



SUPPLEMENTARY CODE OF FAIR CO^IPETITION FOR 
THE PULP AND PAPER MILL AYIRE CLOTH MANUFAC- 
TURING INDUSTRY 

A DIVISION OF THE FABRIC ATEl) METAL PIH)I)ICTS :\r AXUFACTUKIXG AND 
METAL FINISHING AND :METAL COATING INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Supple- 
mentary Code of Fair Competition for the Pulp and Paper Mill 
Wire Cloth Manufacturing Industry, pursuant to Article YI of 
the Basic Code of Fair Competition for the Fabricated Metal Prod- 
ucts Manufacturing and Metal Finishing and Metal Coating Indus- 
try, approved by the President of the United States on the second 
day of November, 1933, and the provisions of this Supplementary 
Code shall be the standards of fair competition for such industry 
and shall be binding upon every member thereof. 

Article II — Definitions 

Section 1. The term " Pulp and Paper Mill Wire Cloth Manu- 
facturing Industiy '' means the manufacture for sale of cloth or 
screen of brass, copper, bronze, steel, nickel, monel metal, alloys, or 
combinations thereof, for use in pulp or paper mills. 

Section 2. The terms " President ", ''Act " and "Administrator " 
as used herein shall mean respectively the President of the United 
States. Title I of the National Industrial Recovery Act, and the 
Administrator, for Industrial Recovery. 

SEcrnoN 3. The term " member of this Industry " as used herein 
includes but without limitation any individual, partnership, asso- 
ciation, corporation or other form of enterprise engaged in this In- 
dustry either as an employer or on his or its own behalf. 

Section 4. The term " Basic Code " as used herein is defined to 
mean the Basic Code of Fair Competition for the Fabricated Metal 
Products Manufacturing and Metal Finishing and Metal Coating 
Industry as approved by the President of the United States on the 
second day of November, 1933. 

Section 5. The term " employee " as used herein includes any and 
all persons engaged in the Industry however compensated except a 
member of the Industry. 

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

Section 7. The term " Supplementary Code Authority " as used 
herein means the agency which is to administer this Supplementary 
Code as hereinafter provided. 

(424) 



425 

Section 8. The term " Supplementary Code Committee " as used 
herein is defined to mean the committee authorized to present this 
Supplementary Code. 

Section 9. The term " Confidential xVgent •' as used herein is de- 
fined to mean the impartial agency designated by the Supplemen- 
tary Code Authority. 

Section 10. Tlie term "Association '' is defined to mean the Wire 
Cloth Manufacturers' Association or its successor. 

Section 11. The term "Federation" as used herein is defined to 
mean the Fabricated Metal Products Federation or its successor. 

Article III — Employment Provisions 

This Industry is a division of the Fabricated ISIetal Products 
Manufacturing and Metal Finishing and ^Nletal Coating Industry 
and without limitations the wage, hour and labor provisions in 
Article III of its Basic Code as approved by the President, Novem- 
ber 2, 1933, including Section 1 of said Article III. by which the 
provisions of sub-sections (1), (2) and (3) of Section 7, (a) of 
Title I of the Act are made conditions of this Code, are specifically 
incorporated herein and made a ])art hereof as the wage, hour and 
labor provisions of this Supplementary Code. 

Article IV — Organizattox and Administration 

Section 1. During the period not to exceed sixty (GO) days fol- 
lowing the effective date, the Supplementary Code Committee of the 
Industry shall constitute a temporary Supplementary Code xVuthor- 
ity until tlie Supplementary Code Authority is elected. There sliall 
be constituted within the sixty-day period a Supplementary Code 
Authority consisting of seven members to be elected by the members 
of the Industry, at a meeting called by the Temporary Sipplemen- 
tary Code Authority, ui^on ten (10) clays' notice sent oy registered 
mail to all members of the Industry whose names may be ascertained 
after a diligent search, who may vote either in person or by proxy. 
The members of the Supplementary Code Autliority first elected 
shall serve until the following annual meeting of the Association, 
and thereafter, members of the Supplementary Code Authority shall 
be elected at each annual meeting of the Association to serve until 
the following annual meeting. The members of the Supplementary 
Code Authority shall be elected in the following manner: 

(a) Five (5J members who sliall be members of the Association by 
a majority vote of the members of the Industry present in person 
or by proxy, each member to have one vote. 

(b) Two (2) members who are members of this Industry, but not 
members of the Association to be selected and elected by the non- 
members of the Association present in person or by proxy each 
member to have one vote. 

In case the non-members fail to elect the non-members as herein- 
above provided, the Administrator shall appoint such non-members 
from a list of four non-members to be furnished by the Confidential 
Agent. 

A vacancy in the membership of the Supplementary Code Author- 
ity shall be filled by a majorit}^ vote of the remaining members of 



426 

the Supplementary Code Authority; provided, however, that the 
member of the Supplementary Code Authority who is chosen to fill 
such vacancy shall be selected from the class ot membership in which 
the vacancy has occurred. 

In addition thereto the Administrator may appoint a member of 
the Supplementary Code Authority who shall be Avithout vote and 
shall serve without expense to the Industry, unless the Supplementary 
Code Authority atri'ees to pay such expense. The rei)resentative who 
may be appointed b}^ the Administrator shall be given reasonable 
notice of all meetinj^s and may sit at all meetings of the Supple- 
mentary Code Authority. 

Section' 2. Each trade or industrial association directly or indi- 
rectly participating in the selectiim or activities of the Supplementary 
Code Authorit}' sludl (1) impose no inecjuitable restrictions on mem- 
bership, and (2) shall submit to the Administrator true copies of its 
Articles of Association, By-Laws. Keguhitions and any amendments 
when made thereto, together with such other infornuition as to mem- 
bershij), organization and activities as may be reasonably necessary 
to effectuate the purposes of the Act. 

Section 3. In order that the Supplementary Code Authority 
shall, at all times, be truly representative of the Industry and in 
other respects comply with the provisions of the Act, the Adminis- 
trator may prescribe such Hearings as he may reasonably deem 
proi)er; and, thereafter, if he shall find that the Supplementary Code 
Authority is not truly representative or does not in other respects 
com})ly with the provisions of the Act, may require the removal 
of any or all of the members thei'cof and may make appropriate 
modification or modifications of the Supplementary Code Authority, 

Sectiox 4. All members of the Industry are subject to the jurisdic- 
tion of this Suj)plementary Code; shall be entitled to partici])ate 
in and share the benefits of the Sui)plenieiitary Code; shall be en- 
titled to vote in the selection of members of the Supplementary 
Code Authority as provided in Section 1 of this Article. 

Section 5. It being found necessary in order to support the ad- 
ministration of this Sui)i)lementary Code and to maintain the stand- 
ards of fair competition established hereunder and to effectuate the 
policy of the Act, the Supplementary Code Authority is authorized: 

(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing puri)oses and to meet such obligaticms out 
of funds which may be raised as hereinafter provided and which 
shall be held in trust for the ])ur])oses of the Supplementary 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 neces- 
sary 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 own name. 



427 

Each member of the Industry shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the Supplementary 
Code Authorit3% determined as hereinabove provided, and subject 
to rules and regulations pertaining thereto issued by the Adminis- 
trator. Only members of the Industry complying with the Supple- 
mentary Code and contributing to the expenses of its administration 
as hereinabove provided, shall be entitled to participate in the selec- 
tion of members of the Supplementary 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 Supplementary Code xVuthority shall neither incur nor pay 
any obligations 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 expendi- 
tures in excess of prior budget estimates except those which the 
Administrator shall have so approved. 

Section 6. Nothing contained in this Supplementary Code shall 
constitute the members of the Supplementary Code Authority part- 
ners for any purpose. Nor shall any member of the Supplementary 
Code Authority be liable in any manner to anyone for any act of 
any other member, officer, agent or employee of the Supplementary 
Code Authority, nor shall any member of the Supplementary Code 
Authority, exercising reasonable diligence in the conduct of his 
duties hereunder, be liable to anyone for any action or omission 
to act under this Supplementary Code, except for his own willful 
juaifeasance or non-feasance. 

Section 7. The Supplementary Code Authority shall also from 
time to time furnish to the Basic Code Authority designated in said 
Basic Code, such information as may be required to be furnished 
under terms of said Basic Code. 

Section 8. The Supplementary Code Authority shall have all the 
powers and duties which shall be necessary and proper to enable it 
to fully administer this Supplementary Code and to effectuate its 
purposes. 

Without limitation to the foregoing or any other powers or duties 
provided for in this Supplementary Code, the Supplementary Code 
Authority shall have the following further powers and duties: 

(a) To insure the execution of the provisions of this Supple- 
mentary Code and to secure compliance of the Industry with the 
provisions of the Act. 

(b) To adopt by-laws and rules and regulations for, and keep 
records of its procedure and the administration of this Supplemen- 
tary Code. 

(c) To obtain from members of the Industry such information 
and reports as are required for the administration of the Supple- 
mentary Code. In addition to information required to be submit- 
ted to the Supplementary Code Authority, members of the Industry 
subject to this Supplementary Code shall furnish such statistical 
information as the Administrator may deem necessary for the pur- 
poses recited in Section 3 (a) of the Act to such Federal and State 
agencies as he may designate ; provided that nothing in this Supple- 
mentary Code shall relieve any member of the Industry of any exist- 
ing obligations to furnish reports to any Government agenc}'. No 



428 

individual report :?hall be disclosed to any other member of the In- 
dustry or any other party exeei)t to such othei- Governmental 
aofencies as may be directed by the Administrator. 

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

(e) To make recommendations to the Administi'ator for the co- 
ordination of the administration of this Supplementary Code with 
such other codes, if any. as may be related to the Industry. 

(f ) To recommend to the Administrator further fair trade practice 
provisions to govern members of tlie Industry in their relations with 
each other or with other industries and to recommend to the Admin- 
istrator measures for industrial planning, including stabilization of 
employment. 

(g) To set up definitions for the various classes of customers 
within this Industry after submission to and with the approval of 
the Administrator after notice and hearing, and when so approved 
by the Administrator, quotations, prices, discounts, credit terms, 
allowances or other conditions of sale, shall be made on the basis of 
such definitions and deviations therefrom shall constitute unfair 
methods of competition and a violation of this Supplementary Code. 

Sectiox 9. The Supplementary Code Authority shall have the 
power under such rules and regulations as the Administrator may 
prescribe to investigate all complaints filed by one member of the 
Industry against another member of the Industry. 

Section 10. If the Administrator shall determine that any action 
of a Supplementray 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 Supplementary Code Authority or agency pending final 
action which shall not be effective unless the Administrator approved 
or unless ho shall fail to disapprove after thirty days' notice to him 
of intention to proceed with such action in its original or modified 
form. 

Section 11. Each member of the Industry subject to the jurisdic- 
tion of this Supplementary Code shall comply with all requirements 
of the Supplementary Code Authority made or taken pursuant to 
the provisions of this Supplementary Code, and the failure of any 
member of the Industry, within a reasonable time so to do. shall 
constitute a violation of this Supjilementary Code. 

Section 12. Every em])loyer shall provide for the safety and 
health of employees during the hours and at the places of their em- 
ployment. Standards for safety and health shall be submitted by 
the Supplementary Code Authority to the Administrator within six 
months aftei- the effective date oi the Supplementary Code. 

Section 13. 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- 



429 

lating 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. 

Article V — Accounting and Costing 

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

Section 2. When the Supplementary Code Authority determines 
that an emergency exists in this Industry and that the cause thereof 
is destructive price-cutting such as to render inelfective or seriously 
endanger the maintenance of the provisions of this Supplementary 
Code, the Supplementary Code Authority may cause to be deter- 
mined the lowest reasonable cost of the products of this Industry, 
such determination to be subject to such notice and hearing as the 
Administrator may require. The Administrator may approve, dis- 
approve, or modify the determination. Thereafter, during the pe- 
riod of the emergency, it shall be an unfair trade practice for any 
member of the Industry to sell or olfer to sell any products of the 
Industry for wdiich the lovv^est reasonable cost has been determined 
at such prices or upon such terms or conditions of sale that the 
buyer wnll pay less therefor than the lowest reasonable cost of such 
products. 

When it appears that conditions have changed, the Supplementary 
Code Authority, upon its own initiative or upon the request of 
any interested party, shall cause the determination to be reviewed. 

Article YI — Selling Beloav Cost 

No member of this Industiy shall sell or exchange any of the 
products of this Industry, at a price, or ui)on terms aiid conditions, 
which will result in the purchaser paying for the goods received, 
less than the allowable cost thereof to the seller, determined in 
accordance wnth a uniform method of costing above described in 
Article V; provided, however, that dropped lines, or seconds, or 
inventories which must be converted into cash to meet emergency 
needs may be disposed of b}^ anj^ member of this Industry, at any 
price and on any terms and conditions, but only if such member 
of this Industry, not less than twt) weeks before such disposal, has 
filed with the Supplementary Code Authority or its Confidential 
Agent, a statement in writing, setting forth the fact of, and reasons 
for, such proposed disposal, and provided further, that any mem- 
ber of this Industry maj^ sell below his costs in order to meet com- 
petitive prices w'hich do not violate this Supplementary Code, and 
which are filed in accordance Avitli the provisions of Article VII of 



430 

this Supplementary Code, or to meet competition from products 
of equivalent desifrn, character, quality, or specifications manufac- 
tured outside the I'nitcd States, ])rovided that he has first so re- 
ported to the Supplementary Code Authority and in such report has 
cited the competition vhich caused him to take such action. 

Article VII — Puice Lists 

Section 1. If the Sui)plementary Code Authority determines that 
it has been the generally recognized practice in this Industry, or in 
any branch or subdivision thereof, to sell certain products of this 
Industry on the basis of net price lists, or jirice lists and discount 
sheets, each member of this Industry manufacturin*!; and selliuir 
sucli products shall, within ten (10) days after notice of such deter- 
mination, file with the Sui^plementary Code Authority throuo-h its 
Confidential Agent a net price list, or price list and discount sheet, 
in such form and for such products as the Supplementary Code 
Authority may prescribe ancl the Supplementary Code Authority 
tlirough its Confidential Agent shall immediately send copies thereof 
to all known manufacturers of such products. Such ])rice lists sliall 
be avaihible to all interested buyers at the office of the Confidential 
Agent. 

Changes in prices and/or revised price lists and/o)' discount sheets 
and/or all other conditions of sale of such prochict shall be filed 
from time to time thereafter with the Supplementary Code Authority 
through its Confidential Agent by any member of this Industry by 
fastest possible written transmission to become effective immediately 
upon actual receipt by the Supplementary Code Authority througli 
its Confidential Agent. Copies of changes in prices and/or revised 
price lists and/or discount sheets and/or all other conditions of sale 
shall be immediately sent by the Supplementary Code Authority by 
fastest possible written transmission to all known members of this 
Industry and shall })e available to all interested buyers at the office of 
the Confidential Agent. 

Section 2. Each member of the Industry shall furnish the Sup- 
plementary Code Authority for distribution with such number of 
copies of his price lists and/or discount sheets as the Supplementary 
Code Authority may prescribe. 

Section 3. No member of the Industry shall sell, directly or indi- 
rectly, by any means whatsoever, any product of the Industry cov- 
ered by provisions of this Article VII at a price or at discounts, or 
on other conditions of sale more favorable than those provided in his 
own current net price lists, or price lists and discount sheets. 

Article VIII — Unfair Trade Practices 

In addition to the Unfair Trade Practices covered by Article V 
of the Basic Code except Section A thereof, and for all purposes of 
this Supplementary Code the following described acts shall ccmsti- 
tute unfair j)ractices. Any member of the Industry who shall di- 
rectly or indirectly through any officer, employee, agent or represent- 
ative use or einidoy any of such unfair practices shall be guilty of 
a violation of this Supplementary Code, 



431 

Rule 1. Classification. — No member of the Industry shall falsely 
classify any product of this Industry for the purpose of securing 
lower freight rates. 

Rule ±Comhi nation Sales. — No member of the Industry shall 
sell or offer to sell commodities other than products of this Industry 
at prices below the cost therefor to the members of this Industry 
for such product in order to influence sales. 

Rule 3, Commissions. — No member of the Industry shall split com- 
missions or other compensation received by an employee or agent 
of the seller, with the buyer, for the purpose or with the eifect of 
influencing a sale. 

Rule ^.Contracts. — No member of the Industry shall make any 
sale or contract of sale of any product under any description which 
does not fully describe such product in terms customarily used in 
the Industry. 

Rule 5. Espionage of Competitors. — No member of the Industry 
shall procure, otherwise than with the consent of any Member of the 
Industry, any information concerning the business of such member 
which is properly regarded as a trade secret, or confidential within 
an organization. 

Rule 6. Guaranties. — No member of the Industry shall make or 
issue any guaranties as to life or tonnage cost of wires. 

Rule'T. Service, Extra. — No member of the Industry shall render 
to any purchaser of any product in or in connection with the sale of 
such product any service, unless fair compensation for such service 
shall be paid by such purchaser. 

Rule 8. Lump Sum Bids and Contracts. — No member of the In- 
dustry shall submit a bid or bids for two or more commodities, one 
of which is Pulp and/or Paper Mill Wire Cloth, in which the unit 
price of each commodity is not clearly stated. Accepting orders 
or contracts for sale at a lump sum where the contract does not 
specify the exact quantity, quality, and unit price of the product 
puchased. 

Rule 9. SeUing on Consignment. — No member of the Industry 
shall ship goods on consignment except under circumstances to be 
defined by the Supplementary Code Authority and approved by 
the Administrator, where peculiar circumstances of the Industry 
require the practice. 

Rule 10. Protection Against Decline or Advance. — (a) No mem- 
ber of the Industry shall protect a purchaser against decline in 
price or protect a purchaser against advance. 

(b) The acceptance of any order specifying shipment beyond 
ninety (90) days from receipt of order and/or any agreement to hold 
finished merchandise in the manufacturer's plant subject to requisi- 
tion by the buyer, except under extraordinary conditions beyond 
the control of the bu3^er. 

(c) The revealing by any member of the Industry to any pro- 
spective buyer of an intention to change his price until proposed 
changes have become effective. 

Rule 11. Make and Hold CJrders. — No member of the Industry 
shall accept " Make and Hold Orders " ; to make up and/or stock 
wires for a customer with his knowledge in the absence of a definite 
order as in Rule ten (10) preceding. 



432 

Rule 12. Service AlJoicances. — No member of the Industry shall 
make any allowance for short or unsatisfactory service of pulp and 
l^aper mill wire cloth unless the entire wire is returned to the manu- 
facturer. 

Rule 13. Damage in Transit. — No member of the Industry shall 
assume responsibility for allej^ed danuiiie in transit. 

Rule 14. Secret Rebates. — No member of the Industry for the 
purpose of influencino; a sale, or any other purpose shall offer or 
make any secret payment or allowance of a rebate, refund, com- 
mission, credit, unearned discount or excess allowance, whether in 
the form of uKmey or otherwise, nor shall a member of the Industry 
offer or extend to any customer any special service or privilege not 
extended to all customers of the same class. 

Rule 15. Threats of Law Suits. — No member of the Industry shall 
publish or circulate unjustified or unwarranted threats of leo;al pro- 
ceedings which tend to or have the effect of harassing competitors 
or intimidating their customers. 

Rule 16. Interference nv'th Another'' s Contracts. — No member of 
the Industry shall attempt to induce the breach of a contract be- 
tween a competitor and his customer or source of supply; nor shall 
any such member interfere Avith or obstruct the performance of 
such contractual duties or services. 

Rule 17. No member of the Industry shall sell on terms more 
favorable than thirty (30) days net. / 

Article IX — Monopolies 

No provision of this Supplementary Code shall be so applied as 
to permit monopolies or monopolistic practices, or to eliminate, op- 
press or discriminate against small enterprises. 

Article X — Modifications 

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

Section 2. This Supplementary Code, except as to provisions re- 
quired by the Act, may be modified or amended on the basis of 
experience or changes in circumstances, such modifications or 
amendments to be based upon application by the Supplementary 
Code Authority or other representative group within the Industry 
to the Administrator and such Notice and Hearing as he shall specify 
and to become effective and be a part of this Supplementary Code 
on approval by the Administrator. 

Article XI — Price Increase 

Whereas the policy of the Act to increase real purchasing power 
will be made more difficult of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price 
increases except such as may be required to meet individual costs 



433 

should be delayed and when made, such increases should so far 
as possible, be limited to actual additional increases in the seller's 
costs. 

Article XII — Effective Date and Duration 

This Supplementary Code shall become effective at 12 :01 o'clock 
A.M., Eastern Standard Time, on the tenth day after it is approved 
by the President and shall continue in effect until June 16, 1935, 
or the earliest date prior thereto on which the President shall, by 
proclamation, or the Congress shall, by joint resolution declare that 
the emergency recognized by Section 1 of Title I of the National 
Industrial Recovery Act, has ended. 

Approved Code No. 84 — Supplement No. 44. 
Registry No. 1&46-1-02 



Approved Code No. 347 — Supplement No. 36 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

REFRIGERATING MACHINERY INDUSTRY 

As Approved on July 30, 1934 



ORDER 



Approving Supplementary Code of Fair Competition for the 
Refrigerating Machinery Industry 

A division of the machinery and allied products industry 

An application having been tlul}' made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 1(5. 1038, for approval of a Supple- 
mental Code of Fair Competition for the Refrigerating Maclimery 
Subdivision of Machinery and Allied Products Industry, and hear- 
ings 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 by reference said 
annexed report and do find that said Supplemental Code complies 
in all respects with the pertinent ])rovisions and will promote the 
])olicy 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 Articles VI, VII, VIII, and IX 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 Code Authority send notice of the stay of 
these provisions and of the opportunitj'^ to show cause why they 
should not become effective to all known employers of the Subdi- 
vision; and (2) that the provisions of Article VIII, Section (a), 
insofar as the}^ 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 or revised 

(435) 



436 

terms and conditions of sale, be and they hereb}' are stayed pending 
my further order. 

Hugh S. Johnson, 
Administ^'ator for Industrial Recovei^. 

Approval recommended : 
Barixin AV. Murray, 

DhnMon Admin is f nit or. 

Washington, D.C, 

July 30, 193Jf. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the Supplemental Code of Fair Com- 
petition for the Refrigerating Machinery Subdivision of Machinery 
and Allied Products Industry, a Public Hearing on which was 
lield in Washington, D.C., on December 21, 1933. The Hearing 
was conducted in full accordance with the provisions of Title I 
of the National Recovery Act. 

GENERAL STATEMENT 

The Refrigerating Machinery Subdivision being representative 
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 
Machinerv and Allied Products Industry approved on the seven- 
teenth day of March 1934. 

The Refrigerating Machinery Subdivision means the engineering, 
design, and production of commercial and industrial ice making and 
refrigerating machinery and equipment incidental thereto. It is 
expressly stated for the pui-poses of this Code that it is to apply 
to the engineering, design, manufacture, and sale, as well as erec- 
tion and/or installation of such machinery and equipment incidental 
thereto. Any work or process incidental to and carried on by an 
employer at his plant or elsewhere as a part of the manufacture 
of any product of the Subdivision shall be governed by the pro- 
visions of this Code rather than of any other Code. 

ECONOMIC EFFECT 

This Subdivision has been severely affected by the recent depres- 
sion. This is evidenced by the steady decline in annual sales after 
1929 from $37,769,000 in 1929 to $20,580,000 in 1932 or 45.2 per cent. 

In 1929 this Subdivision employed approximately 6,759 factory 
workers, which total declined to about 4,339 workers as of November 
15, 1933 or 35.8 per cent. Approximately 56 per cent of the workers 
were working more than 40 hours per week as of June 15, 193'3 as 
compared to an average work week of 50.6 hours in 1929. 

Estimated man hours declined from an average of 342,000 per week 
in 1929 to 133,210 as of November 15. 1933 or 61 per cent. Until 
there is a further increase in man hour requirements, the adoption 
of the 40 hour week will probably cause no increase in employment 
in this Subdivision. 

(437) 



438 

, Estimated weekly earnings declinetl from an average of $27.02 in 
1929 to a minimum of $13.38 in the last half of 1932, or 50.5 per cent. 

Based on the distribution as of June 15, 1933 and the specified 
percentages of number of wage earners receiving less than rates 
previously prevalent in this Subdivision, the adoption of the pro- 
posed minimum hourly rates will cause an increase in factory pay- 
rolls in this Subdivision. 

The wage provisions for the Subdivision, which is operating 
under the Code of the Machinery and Allied Products Industry, 
provide that employees engaged in plant operations shall be paid as 
follows: (1) in cities of more than 50,000 population and their 
immediate vicinity, 40 cents per hour; (2) in cities of more than 
10.000 but not more than 50,000 population and their immediate 
vicinity, which cities are not in the immediate vicinity of a city of 
more than 50,000 population, 38 cents per hour ; (S) in cities of 10,000 
population or less and their immediate vicinity, which cities are not 
in the immediate vicinity of a city of more than 10,000 population, 
3C cents per hour, except that employees engaged in plant operations 
in all localities in the states of Virginia, North Carolina, South 
Carolina, Georgia, Florida, Tennessee, Alabama, Mississippi, Arkan- 
sas, Louisiana, Texas, and Oklahoma, shall be paid not less than 32 
cents per hour. 

When females do substantially the same work as males or replace 
males, they shall receive the same pay. However, no female employee 
shall be paid less than 871/2 % of the proper rate for the locality in 
which employed. 

Employees other than those engaged in plant operations shall re- 
ceive not less than $15.00 per week. 

Office boys and girls and apprentices shall be paid not less than 
80% of the minimum wage. 

This Supplemental Code provides that no person under sixteen 
years of age shall be employed in this Subdivision. 

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 provi- 
sions of the Code of Fair Competition for 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, and VIII, 
of the Code 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 the 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 ])rovides that no products shall be sold or exchanged 
below a reasonable cost when the Code Authority determines that 
an emergency exists. 



439 

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 provides that no provision of this Suppleii^ental Code 
relating to pricing and marketing shall apply to export sales. 

Article XI : This Supplemental Code and all the provisions 
thereof are expressly made subject to the right of the President in 
accordance with subsection (b) of Section 10 of the Act, from time 
to time to cancel or modify any order, approval, license, rule or 
I'egulation issued under said Act. Provision is also made that modi- 
fications may be submitted by the Code Authority to the Adminis- 
trator for approval. 

Article XII provides means for withdrawal of this Subdivision 
from the Basic Code and its continuance as an autonomous Code. 

Article XIII establishes that no provision of this Supplemental 
Code shall be so applied as to permit monopolies and monopolistic 
practices as to eliminate, oppress, or discriminate against small 
enterprises. 

Article XIV states the effective date of this Supplemental Code. 

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 
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 organiza- 
tion of industry for the purpose of cooperative action among the 
trade groups, by inducing and maintaining united action of labor 
and management under adequate governmental sanctions and super- 
vision, by eliminating unfair competitive practices, by promoting 
the fullest possible utilization of the present productive capacity of 
industries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

(b) Said Subdivision normally employs not more than 50,000 
employees; and is not classified by me as a major industr3^ 

(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 ap- 
plicant association is an industrial association truly representative of 
the aforesaid Subdivision; and that said Association imposes no in- 
equitable restrictions on admission to membership therein. 

(d) The Supplemental Code is not designed to and will not per- 
mit monopolies or monopolistic practices. 

80835—84 23 



440 

(e) The Supplemental Code is not designed to and will not elim- 
inate or oppress small enterprises and will not operate to discrim- 
inate against them. 

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

P\)r these reasons, therefore, I have approved this Supplemental 
Code, provided that certain provisions relating to accounting and 
costing, selling below reasonable cost, price lists, and unfair trade 
practices are stayed as stated in the Order. 
Respectfully, 

Hugh S. Johnson, 

Administrator, 
JUI.Y 30. 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE REFRIGERATING MACHINERY 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 Refrigerating Machinery 
Subdivision of the ^lachinery and Allied Products Industry, and 
together with the Code of Fair Competition for the Machinery and 
Allied Products Industry, shall be the standard of fair competition 
for this Subdivision, and shall be binding on every Employer thertin. 

Article II — Definitions 

^^Applicant " means the Refrigerating Machinery Association, a 
trade organization, all members of which are engaged in the manu- 
facture for sale of the products of the Refrigerating Macliinery 
Subdivision of the Machinery and Allied Products Industry. 

" I iidustr^/ " means the Machinery and Allied Products Industry, as 
defined in its Code as approved by the President, and as such defini- 
tion nuiy from time to time be amended. 

" Suhdivkion " means the Refrigerating Machinery Subdivision 
of the Machinery and Allied Products Industry as defined and set 
forth in paragraph 26, Article II of the Code of Fair Competition 
for the Machinery and Allied Products Industry as follows: 

'■ Refrigerafhig Mach'nienj Subdivision " means the engineering, 
design, and production of conunercial and industrial ice making and 
refrigerating machinery and equipment incidental thereto. It is 
expressly stated for the purposes of this Code that it is to apply to 
the engineering, design, manufacture, and sale, as well as erection 
and/or installation of such machinery and equipment incidental 
thereto. . Any work or process incidental to and carried on by an 
Employer at his plant or elsewhere as a part of the manufacture of 
any product of the Subdivision shall be governed by the provisions 
of this Code rather than any other Code. 

'■ Code " means the Code of Fair Competition for the Machinery 
and Allied Products Industry as approved by the President, March 
17, 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 this Subdivision either 
on his own behalf or as an employer of labor. 

''Emyloyee " means any one Avho is employed in the Subdivision 
by any such Employer. 

(441) 



442 

'■''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. 

''■Ba.sic Code Authorifi/^^ means the Code Authority for the Ma- 
chinery and Allied Prochicts Industry as constituted by the Code. 

^^Code Authoi^ity "' 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. 

'■''Puhlish " means to make available to the public. 

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 thev were written into this Supplemental 
Code. 

Article IV — Adoption of Other Provisions or Code 

The following Articles of the Code, viz ; Article II, " Defini- 
tions " ; Article VI, "Administration ", to the extent that they shall 
be applicable to this Supplemental Code as such or as it may here- 
after be administered as an autonomous Code; and Article VIII, 
" Modifications and Termination ", 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 permanent Code Authority to admiliister, supervise and 
to facilitate the enforcement of the Code and this Supplemental 
Code, heretofore duly elected in accordance with Article VI, Sec- 
tion (g) of the Code, shall be (if such method of election is 
approved by the Administration) the Code Authority of this Sub- 
division until its successors are duly elected and qualified in accord- 
ance with the procedural rules and regulations of this Subdivision 
(duly adopted in accordance with Article VI, Section (g) of the 
Code) and with the following sections of this Article V. When its 
successors shall have been duly elected and qualified, they shall con- 
stitute the Permanent Code Authority. 

(b It being found necessary in order to support the Administra- 
tion of this Supplemental 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 ; 



* See paragraph 2 of order approving this Code. 



443 

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 all employers of 
the Subdivision; 

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

3. Each employer of the Subdivision 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 hj the Administrator. Only 
employers of the Subdivision complying with the Code and con- 
tributing to the expenses of its administration, as hereinabove pro- 
vided, unless duly exempted from making such contributions, shall 
be entitled to participate in the selection of the 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 Administra- 
tor shall have so approved. 

(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 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. 

(d) Action by Employers in any Subdivision meeting for the 
election of Code Authority shall be by vote of the Employers entitled 
to vote as provided in Section (b3) of this Article V, and who are 
present in person or by jDroxy, each such Emploj^er to have one vote 

(e) Action by Employers in any Subdivision meeting for the 
adoption of procedural rules, revisions or additions to the Supple- 
mental Code, or the transaction of other business of the Subdivision 
under this Supplemental Code, shall be by vote of the Employers 
who are entitled to vote thereat as provided in Section (b3), Article 
V of this Supplemental Code and are present in person or by proxy 
duly executed and filed with Code Authority; cast and computed in 
the manner provided in Section (d). Article VI of the Code. All 
questions as to the number of votes which each Employer shall be 
entitled to cast at any meeting of Employers other than the meet- 
ing held to vote for the election of the permanent Code Authority 



444 

shall be determined bv Code Authority, in accordance with Sec- 
tion (d). Article VI of the Code. 

(f) Enii)k)vcrs in this Subdivision liavin<>' a common interest and 
common problems may be o;rouped by Code Authority for atlminis- 
trative purposes. There shall be a Group Code Authority approved 
or appointed by Code Authority for each such «rouix 

(g) If formal complaint is made to Code Authority that provi- 
sions of this Supplemental Code have been violated by any Employer, 
Code Authority or the proper Group Code Authority shall investi- 
gate the complaint, and to that end. nuiy to the extent permitted by 
the Act, cause such investigation, examination or audit to be made, as 
may be deemed necessary. If such investioation is made by Grouj) 
Code Authority, it shall rej)ort the result of such investigation or 
audit to Code Authority for action. 

(h) The Code Authority may appoint a Trade Practice Connnit- 
tee which shall meet with the Trade Practice Committees appointed 
under such other Codes as may be related to the Subdivision for llie 
purpose of fornudating fair trade practices to govern the relation- 
ships between production and distribution Euiployers under this 
Supplemental Code and under such others to the end that such fair 
trade practices may be proposed to the Administrator as amend- 
ments to this Supplemental Code and such other Codes. 

Akticle VI ^ — Accounting and Costino 

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 this 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 Reasonahle Cost 

Section 1. When the Code Authority determines that an emer- 
gency exists in this Subdivision and that the cause thereof is de- 
structive price-cutting such as to renckn- ineHective or seriously en- 
danger the maintenance of the provisions of this Su])plemental 
Code, the Code Authority may cause to be determined the lowest 
reasonable cost of the products of this Subdivision, such deter- 
mination to be subject to such notice and hearing as the Adminis- 
tratoi' nuiy require. Tlie Administrator nuiy a})j)rove, tlisa]){)rove, 
or modify the determination. Thereafter, during the period of the 
emei'gency, it shalbbe an unfair trade practice for an}- employer of 
the Subdivision to sell or oiler 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 lowe.st 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 an}^ interested 
party, shall cause the determination to be reviewed. 



' See parr.graph 2 of onler approving this Code. 



445 

Section 2. The foregoing Section (1) shall not apply to (a) 
dropj^ed lines, or (b) seconds, or (c) inventories which must be 
converted into cash to meet emergency needs, all of which may be 
disposed of by any emploj^er at any price and on any terms or con- 
ditions, but onW 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 terms and conditions of sale, and Code Au- 
thority has not, (with the approval of the Administrator), before 
the termination 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, who may 
sell such products at prices and on terms and conditions as favor- 
able as those stipulated in the proposed disposal, when meeting the 
competition of such proposed disposal. 

Section 3. The foregoing Section (1) shall not apply to a sale 
made in order to meet competition on products manufactured out- 
side the United States. For such disposal, any employer may sell, 
at prices and on terms and conditions as favorable as those of the 
competing foreign product, but only if he has first reported to the 
Code Authority his intention so to sell, and the facts as to the 
competition which justifies such action. 

Article VIII ^ — Price Lists 

(a) If and when the Code Authority of this Subdivision deter- 
mines that in any branch or group 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 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, 
individually 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 employers who are cooperating in 
this Supplemental Code as described in Section (b3) of Article V 
hereof. 

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 eft'ective 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 (b3) 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 

1 See paragraph 2 of order approving this Code. 



U6 

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 aixl 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/or terms of sale and payment, which prices 
and discounts maj^ be either more or less favorable than those con- 
tained in any other price list, to be effective as provided in the first 
sentence of tliis 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 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 brancli or group of the Subdivision where 
the use of price lists, with or without discount sheets, and/or terms of 
sale and payment, is well recognized, and that a sj^stem of selling on 
net price lists or price lists and discount sheets with terms of sale and 
paj'ment 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 
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 paj^ment may be thereafter revised in 
the manner hereinabove provided ; and such methods of pricing and 
revisions thereof shall be " published and sent " as described in Ar- 
ticle VIII (a) ; 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 manufacturing such product and are at that 
time cooperating, have given their affirmative consent to such deter- 
mination. 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 furnisli the Code Authority 
for distribution with such number of copies of his price lists and/or 
discount sheets and/or terms of sale and payment as Code Author- 
ity may prescribe. 

(c) No emploj'er 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 liis 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 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 

* See paragraph 2 of order approving this Code. 



447 

care of unusual selling, engineering, servicing, financing, financial 
risks, or other similar special charges, he shall not subsequently 
quote a lower price on said prospective sale than that price first 
quoted, except in accordance with revised price lists duly filed or 
unless he simultaneously eliminates part or all of the unusual engi- 
neering, servicing, financing, financial risks or other similar special 
charges, for which a corresponding reduction only may be made. 

(d) 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. 

(e) 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 filing be made. 

(f ) The Code Authority shall from time to time, with the approv- 
al of the Administrator, formulate, prescribe and distribute to 
persons in the Industry regulations with respect to minimum cash 
payments, and/or maximum deferred terms, and/or carrying or 
finance charges. 

Article IX^ — Unfair Trade Practices 

The following practices constitute Unfair Methods of Competi- 
tion for employers of the Subdivision. They are prohibited and are 
in violation of this Code : 

1. No Employer shall Imowingly make any misrepresentation in 
connection with the sale or advertisement for sale and/or marketing 
of any products of this Subdivision with the intent or effect of mis- 
leading or deceiving buyers, or prospective buyers, regarding their 
quality, composition, or service features. 

2. No employer 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 princi- 
pal of such agent or the represented party, without the knowledge 
of such Employer, principal or party. This Commercial bribery 
provision shall not be construed to prohibit free and general distri- 
bution of articles commonly used for advertising except so far as 
such articles are actually used for commercial bribery as hereinabove 
defined. 

3. No employer shall induce or attempt to induce by any means 
any party to a commercial agreement with another Employer to 
violate such agreement. 

4. No Employer 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 



^ See paragraph 2 of order approving this Code. 



448 

shall any Employer secretly offer or extend to any customer any 
special service or privileire not extended to all customers of the same 
class, for the purpose of influencing a sale. 

5. Xo Employer shall publish or circulate threats of suits for in- 
fringement of patents or trade marks, or of any other legal proceed- 
ings not made in good faith, with the tendency or effect of harassing 
competitors or intimidating their customers. 

6. No Employer shall procure, otherwise than with the consent 
of any other employer, any information concerning the business of 
such employer, which is properly regarded by such employer as a 
trade secret or confidential within his or its organization. 

7. Xo Employer shall accept a contract wherein the Employer as- 
sumes responsibility for indirect or consequential damages nor shall 
any Employer grant a guaranty covering defective workmanship, 
material or design to extend for a longer period than one year. The 
term *" indirect or consequential damages " is defined to mean dam- 
ages (1) other than, or in excess of, the reasonable cost of repairing 
or replacing any defective machinery, equipment or parts furnished 
b}' the Employer under the contract, or (2) other than stipulated, 
liquidated damages relating to delivery, completion and/or 
performance. 

8. Xo Employer shall guarantee cost of power consumed or cost 
of products ])roduced by products of the Subdivision. 

9. Xo Em])loyer shall, except in order to comply with the written 
specifications of any agency of the Federal Government, State Gov- 
ernment, or any Subdivision thereof, accept contracts embodying 
penalty or bonus clauses relative to dates of completion of contracts. 

10. Xo Employer shall guarantee cost of maintenance of products 
of the Subdivision. 

11. Xo Employer shall make an allowance or trade-in value to a 
buyer for used or second-hand products. 

12. Xo Employer shall indulge in destructive price-cutting. 

Article X — Sales for Export 

The provisions of this Supplemental Code concerning pricing and 
marketing shall not apply to direct export sales of any product. A 
similar exemption may be granted by the Code Authority as to sales 
of any product destined ultimately for export. The term " export 
trade " wherever used in this Code means solely trade or commerce 
in goods, wares, or merchandise exported, or in the course of being 
exported from the United States or any Territory thereof to any 
foreign nation ; but the words " export trade " shall not be deemed to 
include the production, manufacture, or selling for consumption or 
for resale, within the United States or any Territory thereof, of 
such goods, wares, or merchandise, or any act in the course of such 
production, manufacture, or selling for consumption or for resale. 

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. Any amend- 
ments, additions, revisions or supplements of this Supplemental 



449 

Code authorized by the affirmative vote of 66%% of the Employers 
in this Subdivision shall be in full force and ejffect upon approval 
by the Administrator. The eligibility requirements, method and 
effect of such voting shall be the same as provided by Article V, 
Section (e) hereof. 

Article XII — Withdrawal 

Upon thirty (30) days' notice to the Basic Code Authority and 
to the Administrator, this Subdivision may, upon the concurring 
affirmative vote of Employers, within the said Subdivision entitled 
to cast two-thirds or more of all the votes that might be cast by all 
Employers within the Subdivision entitled to vote thereon, withdraw 
from tiie jurisdiction of the Basic Code Authority. The eligibility 
of voters shall be in accordance with Article Y, Section (b3) and the 
method and effect of such voting shall be in accordance with the 
provisions of Article Y, Section (e) hereof. After and in the event 
such withdrawal is accomplished this Supplemental Code, together 
with the provisions of the Code shall become and be the sole code 
governing this Subdivision, and the Code Authority shall for this 
Subdivision become and be the sole Code Authority and shall per- 
form all the functions with respect thereto. 

Article XIII — 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 them, and is designed to effectuate the policy of the Act. 

Article XIY — Effective Date 

This Supplemental Code shall become effective and binding on all 
employers engaged in the Subdivision on the eleventh day after 
its approval. 

Approved Code No. 347 — Six{)i)lenient No. 36. 
Registry No. 132S-09. 



Approved Cade No. 201 — Supplement No. 17 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE HARDWARE TRADE 

As Approved on July 30, 1934 



ORDER 



Supplementary Code of Fair Competition for the Wholesale 

Hardware Trade 

A division of the wholesaling or distributing trade 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Supple- 
mental Code of Fair Competition for the Wliolesale Hardware Trade 
to the Code of Fair Competition for the Wholesaling or Distributing 
Trade, and hearings having been duly held thereon and the annexed 
report on said 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 otherwis?; do hereby incorporate by reference said an- 
nexed report and do find thai 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, hoAvever, to the condition that the provisions of 
Article IV, Section 6 be deleted from said Code and the following 
provisions substituted therefor: 

"Sec. 6 (a). Destructive price cutting is an unfair method of 
competition and is forbidden. Any sale shall be deemed prima facie 
destructive price cutting if the net sales price shall be less than the 
seller's net invoice cost plus transportation charges to seller's 
warehouse. 

" Notwithstanding the j)rovisions of this Section any wholesaler 
may sell any article of merchandise at a price as low as the price 
set by any competitor on merchandise which is identical or essen- 
tially the same, where such competitor's price does not violate this 

(451) 



452 

Section or where sueli competitor is not subject to the provisions of 
this Supi)leint'nt;il Code. 

•• Xotwitlistanding the provisions of this Section it shall not be 
deemed destructive price cutting for a wholesaler to sell the follow- 
ing merchandise at less than net invoice cost plus transportation 
charges, as provided above: obsolete goods, bona fide closeout mer- 
chandise, damaged merchandise, stocks being liquidated, merchan- 
dise sold for cliaritable purposes or to unemployment relief agencies, 
and such other merchandise as may be designated by the Divisional 
Code Authority. 

"(b) If tlie Administrator shall at any time find (1) that an 
emei'gency has arisen within the traile, adversely affecting small 
enterprises or wages or labor conditioiis, 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 mininuim 
prices for all or f\ny specified products sold bj^ the trade is neces- 
sary for a limited jioi-iod to correct the conditions constituting such 
emergency and to effectuate the pur])oses of the Act, the Code 
Authority may cause an impartial agency to investigate costs and 
to recommend to the Administrator a basis for determining minimum 
prices of said })roducts. Thereupon the Administrator may fix a 
basis for determining the minimum price of any of said products 
for a stated })eriod. During such period no member of the trade 
shall sell sucli products at a net realized price below the minimum 
price determined in accordance with the base so fixed. From time 
to time the Code Authority may recommend review or reconsidera- 
tion or the Administrator may cause any determination hereunder 
to be reviewed or reconsidered, and appropriate action taken." 

Hugh S. Johnson, 
Administrator for Irulustrial Recovery. 

Approval recommended : 
Robert L. Houston, 

Division Administrator. 

Washington, D.C, 

July 30,1934. 



KEPORT TO THE PRESIDENT 

The President, 

The White House 
Sir: This is a report of the Hearing on the Supplemental Code 
of Fair Competition for the Wholesale Hardware Trade, a division 
of the Wholesaling or Distributing Trade, conducted in the Oak 
Room of the Raleigh Hotel on Thursday, April 19, 1934. The Sup- 
j)lemental Code, which is attached, was presented by duly qualified 
and authorized representatives of the Trade. 

THE TRADE 

Due to the overlapping of this Trade with other trades, com- 
pletely accurate statistics are not available. According to data 
submitted by the Trade, in 1933 there were approximately 1,249 
concerns with aggregate annual sales of $866,158,332. The Trade 
employed about 41.497 persons in 1930. 

PROVISIONS OF THE CODE 

This Code contains no Supplemental Labor Provisions, the em- 
ployees being subject to the wage and hour provisions of the Code 
of Fair Competition for the Wholesaling or Distributing Trade. 
The Labor Advisory Board in its report protests against the non- 
inclusion of Supplemental Labor Provisions. 

In his final report to me the Deputy Administrator points out 
that the overlapping and intermeshing of competition exists in this 
Trade to a most unusual degree and for that reason it is essential 
that this Trade operate under the Code of Fair Competition for the 
Wholesaling or Distributing Trade. 

The provisions containing supplemental definitions are considered 
inclusive and accurate. 

The administrative provisions establish a Divisional Code Author- 
it}^ which fairly represents all the different elements in the Trade. 

The trade practices proposed are not considered to be objectionable. 

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 ])roceedings in this matter: 

I find that: 

(a) Said Supplemental Code is well designed to promote the 
policies and purposes of Title I of the National Industrial Recovery 
Act, including removal of obstructions to the free flow of interstate 
and foreign commerce which tend to diminish the amount thereof, 

(453) 



454 

and will provide for the general welfare bj' promoting the organi- 
zation of industry for the purpose of cooperative action among trade 
groups, b}^ 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 use of the present productive capacity of industries, by "avoid- 
ing undue restriction of production (except as may be temporarily 
recjuired), 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 it 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 T, and Subsection (b) of Section 10 thereof; and that the 
applicant association is a trade association truly representative of 
the aforesaid Trade; and that said association imposes no inequitable 
restrictions on admission to membership therein. 

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

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

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

For these reasons, the Supplemental Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
July 30, 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE WHOLESALE HARDWARE TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Supplemental Code is established as a Code of 
Fair Competition for the Wholesale Hardware Trade pursuant to 
Article VI, Section 1 (c) of the Code of Fair Competition for the 
Wholesaling or Distributing Trade, approved by the President of 
the United States on January 12, 1934. All provisions of the said 
General Code which are not in conflict with the provisions of this 
Supplemental Code are hereby incorporated by reference in this 
Supplemental Code and made a part hereof. Such provisions of the 
General Code together with the supplementing provisions of this 
Code are the standards of fair competition for and are binding upon 
every member of said Wholesale Hardware Trade. 

Article II — Definitions 

supplementing article II OF the general code 

Section 1. Wholesaler. — The term " wholesaler " as used herein 
shall mean any individual, partnership, association, corporation, or 
other form of enterprise, or an organized division thereof set up to 
render and rendering a general distribution service, which deals pri- 
marily in hardware and kindred lines, which buys and maintains at 
his or its place of business an adequate stock of hardware and/or 
kindred lines, and which, through salesmen, advertising and/or sales 
promotion devices, sells to retailers and/or to institutional, com- 
mercial and/or industrial users for manufacturing, equipment, sup- 
ply, and/or maintenance purposes only, but which does not sell in 
significant amounts to ultimate consumers. It is the character of a 
concern's selling rather than the character of its buying which 
distinguishes it as a wholesaler. 

Sec. 2. The Trade. — The term " Trade " as used herein, shall mean 
the business in which " wholesalers ", as above defined, are engaged. 

Sec. 3. General code. — The term " General Code " as used herein 
shall mean the Code of Fair Competition for the Wholesaling or 
Distributing Trade. 

Sec. 4. Supplemental code. — The term " Supplemental Code " 
as used herein shall mean this Supplemental Code of Fair Compe- 
tition for the Wholesale Hardware Trade. 

Sec. 5. Divisional code authority. — The term " Divisional Code 
Authority " for the Wholesale Hardware Trade, a Division of the 
Wliolesaling or Distributing Trade. 

80835—34 24 (455) - 



456 

Si:c. 6. Consign nient. — The term *' consignment " as used herein 
shall mean delivering or leaving merchandise \vith a customer, the 
title to remain in the wholesaler until such time as the retailer shall 
sell the merchandise. 

Sec. T. Kindred lin-es. — The term " kindred lines '" as used herein 
shall include all such lines as have heretofore customarily been car- 
ried by wholesale hardware distributors. 

Article III — Administration 

SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE 

Section 1. The Divisional Code Authority shall be composed of 
seventeen (17) members, one (1) member to represent each of the 
loUowing ten (10) geographical areas: 

1. New England : ISIaine, New Hampshire, Vermont, Massachu- 
setts, Connecticut, Rhode Island, 

2. North Middle Atlantic : New York, New Jersey, Delaware, 
Pennsylvania, 

3. South ^Middle Atlantic : ^Maryland, Virginia, North Carolina, 
iSoutli Carolina, District of Columbia, Georgia, 

4. Gulf: Florida, Alabama. Louisiana, Tennessee, Mississippi, 

5. SoutliAvestern : Texas, Oklahoma, Arkansas, 

6. Eastern Central: Ohio, West Virginia, Indiana, Kentucky, 
Michigan (except the Upper Peninsula), 

7. Northwestern: Minnesota, Montana, North Dakota, Wisconsin 
(North and West of a line drawn from Green Bay to La Crosse), 
the Upper Peninsula of Michigan, 

8. West Central: Illinois, Iowa (East of a line drawn directly- 
North and South through Des Moines and including Des Moines), 
Missouri (East of a line drawn directly North and South through 
Fulton and including Fulton), AVisconsin (South and East of a line 
drawn from La Crosse to Green Bay), 

9. Missouri River : Missouri (West of a line drawn directly North 
and South through Fulton but not including Fulton), Kansas, Iowa 
(West of a line drawn directly North and South through Des Moines 
but not including Des Moines) , Nebraska, South Dakota, 

10. Rocky Mountains and Pacific Coast: Colorado, Utah, Arizona, 
California,^ Oregon, Washington, Idaho, Nevada, New Mexico, 
Wyoming, and seven (7) members at large. 

Sec. 2. The members of the Divisional Code Authority shall be 
elected in the following manner: 

(a) The Executive Committee of the National Wholesale Hard- 
ware Association shall appoint two (2) members and the Execu- 
tive Committee of the Southern Hardware Jobbers Association shall 
appoint one (1) member of an Electoral Board of three persons to 
conduct the election. 

(b) The Electoral Board shall send out nominating ballots to all 
wholesalers discoverable by diligent search. Each of these ballots 
shall contain spaces in which the voter may write the names of his 
choices for the member of the Divisional Code Authority and an 
alternate member thereto, for his geographical area. To each nomi- 
;iating ballot shall be attached a letter assenting to and promising to 



457 

comply with this Supplemental Code and the General Code. 
Twenty (20) days after these ballots are sent out the Electoral 
Board shall publicly count the votes which are then in its possession. 
Only those ballots which are accompanied by a signed statement of 
assent and compliance shall be counted. The person in each area 
receiving the highest number of votes for the j^osition of member 
of the Divisional Code Authority shall be declared to be a candidate v 
for that position in that area. The person receiving the highest 
number of votes for alternate in each area shall be declared to be 
the candidate for the position of alternate in that area. 

(c) The Executive Committees of the Natiomil Wholesale Hard- 
ware Association and the Southern Hardware Jobbers Association 
shall nominate seven (7) candidates at large and seven (7) alter- 
nates at large. 

(d) The Electoral Board shall prepare and mail to all wholesalers 
'discoverable by diligent search ballots containing the names of all 
the candidates and alternates nominated according to the foregoing 
paragraphs. These ballots shall contain for each position a blank 
space in which the voter may write his personal choice. Wholesalers 
in all geographical areas shall vote for all members of the Divisional 
Code Authority and for all alternates. Twenty (20) days after the 
mailing of these ballots the Electoral Board shall publicly count the 
votes which it has received. Only those ballots shall be counted 
which are accompanied by a signed statement of assent and compli- 
ance or by a statement that the voter has previously submitted such 
■a statement of assent and compliance. The candidates for member 
of the Divisional Code Authority and for alternate receiving the 
highest vote for each of the geographical areas and the seven (7) 
.candidates at large and the seven (7) alternates at large receiving the 
highest vote shall be declared to be elected. 

(e) The Electoral Board shall certify to the Administrator the 
method in which it has conducted the election and the results of the 
same. 

Sec. 3. The terms of office of members of the Divisional Code 
Authority and the method of electing their successors whether for 
full new terms or for unexpired terms shall be established in the 
by-laws of the Divisional Code Authority, subject to the approval of 
the Administrator. 

Sec. 4. The Divisional Code Authority shall have the following 
duties and powers subject to such rules and regulations as the Ad- 
ministrator may prescribe : 

(a) To represent the Trade in conferring with the President or his 
agents or the General Code Authority, with respect to the Adminis- 
tration of this Supplemental Code and the General Code and in 
respect to the Act and any orders or regulations issued thereunder. 

(b) To study the trade practice provisions of this Supplemental 
Code and the operations thereof, and make such recommendations 
from time to time to the Administrator as it may deem desirable for 
modification of or addition thereto, which upon the approval of the 
Administrator or his agents after such hearing as he may prescribe, 
shall become a part of this Supplemental Code and have full force 
and effect as provisions thereof. 



458 

(c) To appoint a Trade Practice Committee, which shall meet 
■with the Trade Practice Committees appointed under such other 
Codes as may be related to the Trade except other Codes supple- 
mental to the General Code, for the i)urpose of fornudatino- Fair 
Trade Practices to govern the relationships between production and 
distribution employers under this Supplemental Code and under such 
other Codes to the end that sucli Fair Practices may be proposed to 
the Administnitor as amendments to this Supplemental Code and 
such other Codes. 

(d) To appoint such rcaional committees and agents as the Divi- 
sional Code Authority may establish to assist the Divisional Code 
Authority in achninistering this Supplemental Code and the Gen- 
eral Code, provided, however, that nothing herein shall relieve the 
Divisional Code Authority of its responsibilities as such. 

(e) To organize, elect officers, hire employees, and perform such 
other acts as may be necessary for the proper administration of the 
Supplemental Code and the General Code. 

(f) To appoint a Special Committee on Overlapping which shall 
meet Avith Trade Pi'actice Committees and/or Special Committees 
on Overlapping which may be ap[)ointed by the General Code Au- 
thority and/or by the Divisional Code Authorities administering 
other "Supplemental Wholesaling and Distributing Codes covering 
kindred lines and/or by the Code Authorities administering other 
basic codes covering the wholesaling and distributing of kindred 
lines, for the purpose of formulating recommendations to be sub- 
mitted to the resjiective Code Authorities and to the Administrator 
for stich modifications of this Sui)plemental Code and/or such other 
Code or Codes as may be necessary to eliminate, insofar as possible, 
conflicts between the fair trade practice provisions of this Supple- 
mental Code and such other Code or Codes. 

(g) To adopt bylaws and rules and regulations for its procedure, 
(h) To use such trade associations and such other agents or 

agencies as it deems proper for the carrying out of any of its activi- 
ties provided for herein, provided that nothing herein shall relieve 
the Divisional Code Authority of its duties or responsibilities under 
this Supplemental Code or under the General Code and that such 
trade associations and agencies shall at all times be subject to and 
comply with the provisions hereof. 

(i) To obtain from members of the Trade such information and 
reports as are required for the administration of this Supplemental 
Code. In addition to information required to be .submitted to the 
General Code Authority and to the Divisional Cofle Authority mem- 
bers of the Trade subject to this Supplemental Code shall furnish 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act, to such 
federal and state agencies as he may designate ; provided that noth- 
ing in this Supplemental Code shall relieve any member of the 
Trade of any existing obligations to furnish reports to any gov- 
ernment 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. 

Sec. 5. Nothing contained in this Supplemental Code shall consti- 
tute the members of the Divisional Code Authority partners for any 



459 

purpose nor shall an}' member of the Divisional Code Authority, 
exercising reasonable diligence in the conduct of his duties, here- 
under, be liable to anyone for any action or omission to act, under 
this Supplemental Code except for his own wilful malfeasance or 
nonfeasance. 

Sec. 6. If the Administrator shall determine that any action of 
the Divisional Code Authority or any agency thereof, may be unfair 
or unjust or contrary to the public interest, the Administrator may 
require that such action be sus])ended to afford an opportunity for 
investigation of the merits of such action and for further consid- 
eration by such Divisional Code Authority or agency, pending final 
action, which shall not be effective unless the Administrator approves 
or unless he shall fail to disajjprove after thirty days' notice to him 
of intention to ])roceed with such action in its original or modified 
form. 

Sec. 7. (a) It being found necessary in order to support the ad- 
ministration of this Supplemental Code and to maintain the stand- 
ards of fair competition established hereunder and to effectuate the 
policy of the Act, the Divisional Code Authorit}^ is authorized. 

1. To incur such reasonable obligations as are necessary and proper 
for the foregoing purpose, and to meet such obligations out of funds 
which may be raised and 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 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 suppoit such budget shall be contributed by members of the 
Trade ; 

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

(b) Each member of the Trade shall pay his or its equitable 
contribution to the expenses of the maintenance of the Divisional 
Code Authority, determined as hereinabove provided, and subject to 
rules and regulations pertaining thereto issued by the Administrator. 
Only such members of the Trade complying with the Supplemental 
Code and contributing to the expenses of its administration as here- 
inabove provided unless duly exempted from making such contribu- 
tion shall be entitled to participate in the selection of members of 
the Divisional 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. 

(c) The Divisional 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 expendi- 
tures in excess of prior budget estimates except those Avhich the 
Administrator shall have so approved. 



460 

Article IY — Tkade Practices 

supplemextixg article vii of the general code 

The followino; ])ractices are hereby declared to be unfair methods 
of coinj)etition and are prohibited : 

Section 1. To allow cash discounts greater than 2 percent in 
anticipating the due date of any invoice. This shall not apply to 
those lines where manufacturers' terms provide for greater cash 
discounts in anticipating payment. 

Sec. 2. To allow cash discount on any note settlement or to accept 
a noninterest bearing note in payment of a matured obligation. 
Xoninterest bearing notes may be accepted from insolvent debtors. 

Sec. 3. To ship any goods on consignment except products of 
manufacturers Avhose general plan of distribution is by consignment 
and not by sale for resale. 

Sec. 4. For a wholesaler who. in addition to his definitely organ- 
ized wholesale division, operates a retail store or division, to sell 
like commodities in the same quantities to retailer customers at a 
higher figure than such commodities are charged or billed to his 
retail store or division. 

Sec. 5. The Divisional Code Authority shall study the subject 
of terms of payment and future datings in the Wholesale Hardware 
Trade for the purpose of reconnnc'uding uniform terms of l>ay- 
ment and datings for that Trade. When such recommendation shall 
have been approved by the Administrator after such hearing as he 
may prescribe, it shall be an unfair trade practice for any whole- 
saler to sell upon terms of payment or datings other than those so 
established. 

Sec. 6. (a) No goods shall he sold or offered for sale at Jess than 
the cost to the seller. Such cost shall he defined to mean the actual 
net irn'oiced purchase price or market price., ivhiehever is loirer, 
plus transportation charges to seller's warehouse, plus the actual 
roages involved in the delivery of goods hij the seller irhen such 
wages ai^e determined in accordance with an accounting formula 
developed hy an impartial agency chosen with the advice of the 
Administrator and published from time to time hy the Divisional 
Code Authority after approval hy the Administrator. 

{!)) Notwithstanding the provisions of this Section., any whole- 
saler may sell any article of merchandise at a price as low as the 
price set hy any competitor on merchandise ivhich is identical or 
essentially the same, and where such competitors price does not 
violate this Section or where such competitor is not suhject to the 
provisions of this Supplemental Code. 

{c) Notwithstanding the foregoing provisions of this Section a, 
wholesaler may sell the following merchandise at less than the prices 
estahlished under the said provisions: ohsolete goods.^ hona fide close- 
out merchandise^ damaged merchandise^ stocks heing Hquidated^ 
merchandise sold for charitahle purposes or to unemployment relief 
agencies., and such other merchandise as inay he designated hy the 
Divisional Code Authority} 



1 Ttnlieized section deleted and amended section inscrtiHl in lieu. See i)ariigraph 2 of 
order approving this Code. 



461 

Article V — Subterfuge 

It shall be an unfair trade practice for any member of the Trade 
to employ subterfuge, directly or indirectly, to avoid or attempt to 
avoid the provisions of this Supplemental Code or of the General 
Code or the purposes and intent of the National Industrial Recovery 
Act, which are among other things to increase emplojanent, provide 
better wages, promote fair competitive methods, better business 
conditions, and promote the public welfare. 

Article VI — Poaver or the President to Modify 

This Supplemental Code and all the provisions thereof are ex- 
pressly made subject to the right of the President in accordance with 
the provisions of the 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. 

Article VII — Effective Date 

This Supplemental Code shall become effective on the tenth day 
after its approval by the Administrator. 

Approved Code No. 201 — Supplement No. 17. 
Registry No. 1114-01. 



Approved Code No. 84 — Supplement No. 45 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

HAND BAG FRAME MANUFACTURING INDUSTRY 

As Approved on August 1, 1934 



ORDER 



Approving Supplementary Code of Fair Competition for the 
Hand Bag Frame Manufacturing Industi^y 

A division of the fabricated metal products manufacturing and 

METAL FINISHING AND METAL COATING INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, and in accordance with the 
provisions of Section 1 of Article VI of the Basic Code for the Fab- 
ricated Metal Products Manufacturing and Metal Finishing and 
Metal Coating Industry, approved November 2, 1933, for approval 
of a Supplementary Code of Fair Competition for the Hand Bag 
Frame Manufacturing Industry, and hearing having been duly held 
thereon; and the annexed report on said Supplementary Code, con- 
taining findings with respect thereto, having been made and directed 
to the President i 

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 Supplementary Code complies in all 
respects with the pertinent provisions and will promote the policy 
and purposes of said Title of said Act ; and do hereby order that said 
Supplementary Code of Fair Competition be and it is hereby 
approved. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division A dnvinistrator. 

Washington, D.C, 

August i, 193Ji.. 

(463) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on the Supplementary Code of Fair Com- 
petition for the Hand Bair Frame Manufacturing Industry, a Divi- 
sion of the Fabricated ]\Ietal Products Manufacturing and Metal 
Finishing and Metal Coating Industry, the hearing having been 
conducted thereon in Washington, D.C., April 27, 1934, in accord- 
ance with the provisions of Title I of the National Industrial 
Recovery Act. 

GENERAL STATE JIEXT 

The Hand Bag Frame Manufacturing Industry, being truly rep- 
resentative of this Division of the Fabricated Metal Products Manu- 
facturing and Metal Finishing and Metal Coating Industry, has 
elected to avail itself of the oj^tion of submitting a Supplementary 
Code of Fair Competition, as i)rovided for in Section 1 of Article 
VI of the Basic Code, for the Fabricated Metal Products Manufac- 
turing and Metal Finishing and ]Metal Coating Industry, approved 
by you on the second day of November, 1933. 

RESUME OF THE CODE 

Article I states the purpose of the Supplementary Code. 

Article II accurately defines specific terms employed in the Sup- 
plementary Code. 

Article III : This Industry is a Division of the Fabricated Metal 
Products Manufacturing and Metal Finishing and Metal Coating 
Industry and the labor provisions of its Basic Code as approved 
November 2, 1933, are the labor provisions of this Supplementary 
Code. 

Article IV establishes a Supplementary Code Authority' consist- 
ing of six (6) members, to be elected by the members of the Industry 
at a meeting called by the Temporary Supplementary Code Au- 
thority, and gives the Administrator the authority to appoint one 
additional member without vote and provides machinery for obtain- 
ing statistics and the administration of the Supplementary Code. 

Article V provides for the formulation of an accounting system 
and methods of cost finding and/or estimating. 

Article VI provides for the filing of prices with, a confidential 
and disinterested agent of the Supplementary Code Authority or, 
if none, then with such agent designated by the Administrator. 
Mechanism is also provided for filing of price revisions. 

Article VII sets forth the standards of fair competition for the 
Industry with reference to pricing practices and forbids wilfully 
destructive price-cutting. 

Article VIII sets forth the unfair trade practices of this Supple- 
mentary Code which have been especially designed to offset unfair 
competition in this Division of the Industry. 

(464) 



465 

Article IX provides for reo^istration of designs. 

Article X provides against monopolies or monopolistic practices. 

Article XI contains the mandatory provisions contained in Sec- 
tion 10 (b) of the Act and also provides for submission of proposed 
•amendments to the Supplementary Code. 

Article XII recognizes that price increases be limited to actual 
additional increases in the seller's costs. 

Article XIII gives the effective date and duration of this Supple- 
mentary Code. 

nXDINGS 

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

I find that: 

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

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

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

(d) The Supplementary Code is not designed to and will not per- 
mit monopolies or monopolistic practices. 

(e) The Supplementary Code is not designed to and will not 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 
Supplementary Code. 

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

Respectfully, 

Hugh S. Johnson. 

Administrator. 
August 1, 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE HAND BAG FRA^SIE MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 
METAL FINISHING AND METAL COATING INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is established as a Supplementary Code of 
Fair Competition for the Hand Ba<r Frame Manufacturing Indus- 
try, pursuant to Article VI of tlie Basic Code of Fair Competition 
for the Fabricated Metal Products Manufacturing and Metal Fin- 
ishing and Metal Coating Industry, approved by the President on 
the second day of November, 1933. and the provisions of this Sup- 
plementary Code shall be the standards of fair competition of such 
Industry and shall be binding upon every member of the Industry. 

Article II — Definitions 

Section 1. The term " Hand Bag Frame Manufacturing Indus- 
try ", hereinafter referred to as the " Industry '\ is defined to mean 
the manufacture and assembly for sale of frames made of metal to 
be used for ladies', misses' and children's hand bags, men's, women's 
and children's pocketbooks and jiurses. 

Section 2. The terms '" President "', "Act " and "Administrator '^ 
as used herein shall mean respectively the President of the United 
States, Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery. 

Section 3. The term " member of the Industry " as used herein 
includes but without limitation, any individual, partnership, asso- 
ciation, corporation or other form of enterprise engaged in the In- 
dustry, either as an emploj^er or on his or its own behalf. 

Section 4. The term "Basic Code" as used herein is defined to 
mean the Basic Code of Fair Competition for the Fabricated Metal 
Products Manufacturing and Metal Finishing and Metal Coating 
Industry as approved by the President on the second day of No- 
vember,' 1933. 

Section 5. The term " employee " as used herein includes any and 
all persons engaged in the Industry, however compensated, except 
a member of tlie Industry. 

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

Section 7l The term "Supplementary Code Authority" as used 
herein means the agency which is to administer this Supplementary 
Code as hereinafter provided. 

Section 8. The term "Association " as used herein is defined to 
mean the Hand Bag Frame Manufacturers Association, Inc., or its 
successor. 

(466) 



467 

Section 9. The term " Supplementary Code Committee " as used 
herein is defined to mean the Committee selected by the Hand Bag 
Frame Manufacturers Association, Inc. to present, make such 
changes as necessary, and assent to and sign this Supplementary 
Code on behalf of the Association. 

Section 10. The term " Federation " as used herein is defined to 
mean the Fabricated Metal Products Federation, or its successor. 

Section 11. The term " Confidential Agent " as used herein is 
defined to mean the impartial agency designated by the Supple- 
mentary Code Authority. 

Article III — Employment Provisions 

This Industry is a division of the Fabricated Metal Products 
Manufacturing and Metal Finishing and Metal Coating Industry 
and without limitation the wage, hour and labor provisions in Article 
III of its Basic Code as approved by the President, November 2, 
1933, including Section 1 of said Article III, by which the provisions 
of sub-sections (1), (2) and (3) of Section 7 (a) of Title I of the 
Act are made conditions of this Code, are specifically incorporated 
herein and made a part hereof as the wage, hour and labor provisions 
of this Supplementary Code. 

Article IV — Organization, Administration and Duties 

Section 1. During the period not to exceed sixty (60) days follow- 
ing the effective date of this Supplementary Code, the Supple- 
mentary Code Committee shall constitute a Temporary Supplemen- 
tary Code Authority until the Supplementary Code Authority is 
elected. 

There shall be constituted Avithin the sixty (60) days period a Sup- 
plementary Code Authority consisting of six (6) members, to be 
elected by the members of the Industry, at a meeting called by the 
Temporary Supplementary Code Authority, upon ten (10) days' 
notice sent by registered mail to all members of the Industry whose 
names maj^ be ascertained after diligent search, who may vote either 
in person or by proxy or by mail. The members of the Supple- 
mentary Code Authority first elected shall serve until the following 
annual meeting of the Association in Januar};-, and thereafter mem- 
bers of the Supplementary Code Authority shall be elected by the 
members of the Industry at a meeting of the Industry to be held 
at the time and place of each annual meeting of the Association to 
serve until the following annual meeting. 

The members of the Supplementr}^ Code Authority shall be 
elected in the following manner : 

(a) Two (2) members who shall be members of the Association 
and who are also members of the Industry by a majority of all votes 
cast by the members of the Association voting in person or by proxy, 
or by mail, each member to have one vote. 

(b) Three (3) members, wiio shall be members of the Association 
and who are also members of the Industry, by a fifty-one percent 
(51%) of all votes cast by the members of the Association who are 
also members of the Industry, voting in person or by proxy, or by 
mail, each member to have one vote and one additional vote for each 



468 

$10,000 annual sales of the previous calendar year reported to the 
Sui)i)leinentary Code Authority. Provided, however, that no one 
member nuiy cast more than twenty-five percent (25%) of the total 
number of votes cast. 

(c) One (1) member who is not a member of the Association, who 
is a member of the Industry may be elected by a majority of all 
votes cast by those members of the Industry who are not members 
of the Association, voting in person or by proxy or by mail, each 
member to have one vote. 

A vacancy in the membership of the Supplementary Code may be 
filled by a majority vote of the remaining members of the Sup- 
plementary Code Authority. If the vacancy be that of a non- 
member of the Association, it must be filled by the election of a 
non-member. 

In addition thereto the Administrator may api)oint a member of 
the Su[)plementary Code Authority who shall be without vote and 
shall serve for such term as he shall specify without expense to 
this Industi'v. unless the Supplementary Code Authority agrees to 
pay such expense. The representative who may be appointed by the 
Administrator shall be given reasonable notice of and may sit at all 
meetings of the Supplementary Code Authority. 

Sfxtion 2. Each trade association directly or indirectly partici- 
pating in the selection or activities of the Supplementary Code Au- 
thority shall: (1) impose no inequitable restrictions on membership, 
and (2) shall submit to the Administrator true copies of its Articles 
of Association. By-Laws. Regulations, and any amendments when 
made thereto, together with sucli other information as to member- 
ship, organization, and activities as the Administrator may deem 
necessary to effectuate the purposes of the Act. 

Section 3. In order that the Supplementary Code Authority shall, 
at all times, be truly representative of the Industry and in other 
respects comply w'ith the provisions of the Act, the Administrator 
may prescribe such hearings as he may deem proper; and, there- 
after, if he shall find that the Supplementary Code Authority is not 
truh' representative or does not in other respects comply with the 
])rovisions of the Act. may require the removal of any or all of the 
members and may make appropriate modification or modifications 
of method of selection of the Supplementary Code Authority. 

Section 4. E^■el•y employer shall provide for the safety and iiealth 
of emj)loyees during the hours and at the places of their employment. 
Standards for safety and health shall l)e submitted by the Supple- 
mentary Code Authority to the Administi-ator within six months 
after the effective date of the Sni)i:)lementary Code. 

Section 5. It being found necessary in oi'der to sui)i)ort tlie ad- 
ministration of this Supplementary Code and to maintain the stand- 
ards of fair competition established hereunder and to effectuate the 
policy of the Act, the Supi)lementary 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 i)rovided and which 
shall be held in ti'ust for the purjKjses of the Sui)plementai'y Code. 

(b) To submit to the Administrator for his apjiroval, subject to 
such notice and opportunity to be heard as he may deem necessary : 



469 

(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 own name. 

Each member of the Industry shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the Supplementary 
Code Authority, determined as hereinabove provided, and subject to 
rules and regulations pertaining thereto issued by the Administrator. 
Only members of the Industry complying Avith the Su[)[)iementary 
Code and contributing to the expenses of its administration as here- 
inabove provided, unless duly exempted from making such contribu- 
tions, shall be entitled to participate in the selection of members 
of the Supplementary 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 Supplementary Code Authority shall neither incur nor pay 
any obligations 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 items for expendi- 
tures in excess of prior budget estimates except those which the 
Administrator shall have so approved. 

Section 6. Nothing contained in this Supplementary Code shall 
constitute the members of the Supplementary Code Authority 
partners for any purpose. Nor shall any member of the Supple- 
mentary Code Authority be liable in any manner to anyone for any 
act o