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

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NATIONAL RECOVERY ADMINISTRATION 

HUGH S. JOHNSON, Administrator for National Recovery 



CODES OF FAIR COMPETITION 

Nos. 509-519 

AS APPROVED 

AUGUST 26-SEPTEMBER 15, 1934 

WITH SUPPLEMENTAL CODES, AMENDMENTS 

EXECUTIVE AND ADMINISTRATIVE 

ORDERS ISSUED BETWEEN 

THESE DATES 



VOLUME XVI 




WE DO OUR PART 



GOVERNMENT PRINTING OFFICE 
WASHINGTON : 1934 



MAY 26 1938 









with Sapt. of Documents 



CONTENTS 



Code 

No. 



Industry 



Date ap- 
proved, 
1934 



509 
510 
511 
512 
513 
514 
515 
516 
517 
518 
519 



CODES OF FAIR COMPETITION 

Marine Equipment Manufacturing 

Assembled Watch 

Corrugated Rolled-Metal Culvert Pipe 

Grass and Fibre Rug Manufacturing 

Commercial Aviation 

Artificial Limb Manufacturing 

Alloys 

Flavoring Products 

Ring Traveler Manufacturing 

Shuttle Manufacturing 

Natural Cleft Stone 



Aug. 27 
Aug. 27 
Aug. 27 
Aug. 27 
Aug. 23 
Aug. 28 
Sept. 5 
Sept. 7 
Sept. 7 
Sept. 7 
Sept. 11 



Industry- 



Date 



AMENDMENTS 

Hair Cloth Manufacturing, No. 1 ^. 

Wholesale Wallpaper Trade, No. 2 (A Division of the Whole- 
saling or Distributing Tro.de) ___■__; 

Boiler Manufacturing, No. 2 

Ladder Manufacturing, No. 1 

Mica, No. 2 

Soap and Glycerine Manufacturing, No. 1 

Waterproofing, Damp-proofing, Caulking Compounds and Con- 
crete Floor Treatments Manufacturing, No. 1 

Alloy Casting, No. 2 

Collapsible Tube, No. 1 

Die Casting Manufacturing, No. 1 

Graphic Arts, No. 9 

Used Textile Bag, No. 1 

Canning, No. 1 

Wholesale Millinery, No. 1 (A Division of the Wholesaling or 

Distributing Trade) 

Automobile Manufacturing, No. 3 

Beauty and Barber Equipment and Supplies Trade, No. 1 (A 

Division of the Wholsaling or Distributing Trade) 

Cigar Container, No. 1 _-_ 

Commercial Refrigerator, No. 1 

Earthenware Manufacturing, No. 1 

Household Ice Refrigerator, No. 1 

Silk Textile, No. 2.._ 

Beauty and Barber Shop Mechanical Equipment Manufactur- 
ing, No. 1__ 

Pipe Organ, No. 1 

Radio Wholesaling Trade, No. 1 (A Division of the Wholesaling 

or Distributing Trade) 

Rubber Manufacturing, No. 2 

Leather and Woolen Knit Glove, No. 1 

Trucking, No. 2 

(m) 



8-27-34 

8-27-34 
8-28-34 
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8-28-34 
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8-30-34 
8-31-34 

8-31-34 
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8-31-34 
8-31-34 

9- 1-34 
9- 1-34 



9- 
9- 
9- 



1-34 
1-34 
5-34 



9- 5-34 



CONTENTS— Continued 



Industry 



AMENDMENTS— Continued 

Wholesale Tobacco Trade, No. 1 

Mica, No. 3 ^ 

Retail Jewelry Trade, No. 2 

Wrench Manufacturing, No. 1 (A Division of Fabricated Metal 
Products M.mufiicturing and Metal Finishing and Metal 

Coating) 

Cotton Cloth Glove Manufacturhig, No. 4 

Cylindrical Liquid Tight Paper Container, No. 1 

Metal Hat Die and Wood Hat Block, No. 1 

Screw Machine Products Manufacturing, No. 2 (A Division of 
Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating) 

Lumber and Timber Products, No. 20 

Wiping Cloth, No. 1 

Retail Trade, No. 4 

Wholesale Stationery Trade, No. 1 (A Division of the Whole- 
saling or Distributing Trade) 

Cotton Textile, No. 10 

Fibre Can and Tube, No. 2 

Package Medicine, No. 1 

Retail liumber, Lumber Products, Building Materials and 

Building Specialties Trade, No. 3 

Air Transport, No. 1 

Shovel, Dragline and Crane, No. 2 

Trucking, No. 3 

Wire Reinforcement, No. 1 (A Division of Iron and Steel) 

Abrasive Grain, No. 1 

Millinery and Dress Trimming Braid and Textile, No. 1 

Radio Wholesaling Trade, No. 2 (A Division of the Wholesaling 

or Distributing Trade) 

Soft Fibre Manufacturing, No. 1 

Solid Braided Cord, No. 1 

Dry Color, No. 1 

Grinding Wheel, No. 1 

Lumber and Timber Products, No. 21 

Wholesale Dry Goods Trade, No. 1 (A Division of the Whole- 
saling or Distributing Trade) 

APPENDIX 

Fly Swatter Manufacturing, No. 1 (A Division of Fabricated 
Metal Products Manufacturing and Metal Finishing and 
Metal Coating) 

CONSOLIDATIONS 

Wire Reinforcement, No. 1, under Iron and Steel 

Cleanser, No. 1, under Soap and Glycerine Manufacturing 

Manganese Steel Casting, No. 1, under Steel Casting 

SUPPLEMENTS 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 48, for Perforating Manufac- 
turing . 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 49, for Socket Screw Products Manu- 
facturing 

Fabricatoci Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 50, for Vise Manufacturing 

(IV) 



Date 



9- 5-34 
&- &-34 
9- 6-34 



9- ft-34 
9- 8-34 
9- 8-34 
9- 8-34 



9- 8-34 
9- 9-34 
9- 9-34 
9-10-34 

9-10-34 
9-11-34 
9-11-34 
9-11-34 

9-11-34 
9-12-34 
9-12-34 
9-12-34 
9-12-34 
9-13-34 
9-13-34 

9-13-34 
9-13-34 
9-13-34 
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9-14-34 
9-14-34 

^14-34 



9- 7-34 



8-13-34 
9- 1-34 
9-14-34 



8-31-34 

9- 1-34 
9- 1-34 



CONTENTwS— Continued 



Industry 



Date 



SUPPLEMENTS— Continued 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 51, for Refrigeration Valves and 
Fittings Manufacturing 

Fishery, No. 7, for New England Fish and Shellfish Preparing 
and Wholesaling or Wholesaling 

Importing Trade, No. 1, for Oriental Rug Importing Trade 

EXECUTIVE ORDERS 

Industrial Emergency Committee, Amendment to order cre- 
ating 

ADMINISTRATIVE ORDERS 

Iron and Steel, Wire Reinforcement, Extending the effective 
date 

Administrator's Territorial Cooperation Agreement, Approval 
of 

Canning, Piece rate, Granting optional 

Drop Forging, Cost Accounting, Approving uniform system of _ 

Candlewick Bedspread, Homeworkers wages. Staying scale for. 

Service Trades or Industries, Glasgow, Montana, is a town of 
more than 2,500 population 

Wholesale Tobacco Trade, Sabbath, Allowing optional day for 
observance 

Codes of Fair Competition, Territorial exemption for Hawaii 
extended 

Cotton Textile, Information allowed to be given to governmen- 
tal agencies authorized to supply credit to members 

Retail Lumber, Lumber Products, Building Materials and 
Building Specialties Trade, Prices on less than carload quan- 
tities, Staj' of 

Builders' Supplies Trade, Sale of carload quantities, Reducing 
tolerance for 

Builders' Supplies Trade, Costs, Modifying Modal Overhead- -. 

Knitted Outerwear, Contract System of production, Approving 
regulations for 

Millinery, Wages, Stay of provisions applicable to overtime 

Undergarment and Negligee, Wage study, Extending time to 
report on 

National Sheltered Workshop Committee, Amendment of Insig- 
nia Rules 

Codes of Fair Competition, Lai^or provisions. Amendment of 
regulations governing the posting of 

Oil Burner, Cost provisions and Industry regulations, Stay of _ _ 

Earthenware Manufacturing, Cost finding. Approving method 
of 



Government contracts and contracts involving the use of gov- 
ernment funds. Lease at Sparta Storage Warehouse, Sparta, 
Wisconsin 

Motion Picture, Employee salaries, etc., Indefinite suspension of 
code provisions relevant to 

Wholesale Food and Grocery Trade, Prices allowed for wages of 
labor. Stay of quotations to governmental agencies 

Household Goods Storage and Moving Trade, Registration, 
Further extension of time for 

Merchandise Warehousing Trade, Cost accounting methods. 
Approving for determining reasonable costs 

Wholesale Confectioners, Sabbath, Allowing optional day of 
observance 



9- 6-34 

9- 8-34 
9-14-34 



8-31-34 



8-22-34 

8-27-34 
8-27-34 
8-27-34 
8-28-34 

8-28-34 

8-28-34 

8-29-34 

8-29-34 

8-29-34 

8-30-34 
8-30-34 

8-31-34 
8-31-34 

8-31-34 

9- 1-34 

9- 1-34 
9- 1-34 

9- 5-34 

8- 5-34 

9- 5-34 
9- 5-34 
9- 6-34 
9- 6-34 
9- 6-34 



(V) 



CONTENTS— Continued 



Industry 



Date 



Page 



ADMINISTRATIVE ORDERS— Continued 

Automatic Sprinkler, Cost accounting system, Stay of order 
approving the 

General N.R.A. Code Authority, Members, Providing for the 
selection of 

National Sheltered Workshops, Granting exemptions from pre- 
vious order and approving specified shops 

Novelty Curtains, Draperies, Bedspreads and Novelty Pillows, 
Cost, Approval of procedure for determining 

General N.R.A, Code Authority, Appointing a Chairman of 
the... 



General N.R.A. Code Authority, Appointing a member of the.. 

General N.R.A. Code Authority, Appointing a member of the.. 

General N.R.A. Code Authority, Appointing a member of the.. 

General N.R.A. Code Authority, Retail Solid Fuel, Appointing 
a member of the for the 

Imported Green Olive, Wages, Staying time to report on mini- 
mum 



Knitted Outerwear, Contract system of production. Extending 
eflfective date of 

Motor Vehicle Retail Trade, Sale price, Tolerance allowed for 
sale to governmental agencies 

Retail Tobacco Trade, Prices, Amending basis for computing 
minimum 

Retail Solid Fuel, General N.R.A. Code Authority, Designation 
as a temporary custodian to administer the code 

Cigar Manufacturing, Wholesale Tobacco Trade and the Retail 
Tobacco Trade, Prices and discounts. Terminating provi- 
sions of the cigar merchandising plan relevant to 

Laundry Trade, Termination date of code. Extension of 

Iron and Steel, Wire Reinforcement, Modification and amplifi- 
cation of order approving 

Codes of Fair Competition, Texarkana, Arkansas and Tex- 
arkana, Texas, Population decision for 

Government contracts and contracts involving the use of gov- 
ernment funds, Lease in Terre Haute, Indiana, Extension of 
the Weather Bureau 

Plumbing Fixtures, Cost accounting system. Approval of the-. 

Wholesale Tobacco Trade, Prices, Amending basis for comput- 
ing minimum ^ 

Index 



9- 7-34 

9- 7-34 

9- 7-34 

9- 7-34 

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

9- 8-34 

9- 8-34 

9- 8-34 

9- 8-34 

9- 8-34 

9-10-34 

9-11-34 
9-11-34 

9-12-34 

9-13-34 



9-14-34 
9-14-34 

9-15-34 



562 

563 

564 

566 

567 
568 
569 
570 

571 

572 

573 

574 

575 

576 

577 
579 

580 

582 



583 

584 

585 
587 



(VI) 



CODES OF FAIR COMPETITION 



Approved Code No. 509 
CODE OF FAIR COMPETITION 

FOR THE 

MARINE EQUIPMENT MANUFACTURING 
INDUSTRY 

As Approved on August 27, 1934 

ORDER 

Approving Code of Fair Competition for the Marine Equipment 
Manufacturing Industry 

An apiDlication 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 Marine Equipment Manufacturing In- 
dustry, and hearing having been duly held thereon and the annexed 
report on said Code, containing findings with respect thereto, having 
been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act; and do hereby order that said Code 
of Fair Competition be and it is hereby approved; provided, how- 
ever, that the provisions of Article X, insofar as they prescribe a 
waiting period between the filing with the Code Authority and the 
effective date of revised price lists or revised terms and conditions of 
sale be and they are hereby stayed pending my further Order ; and 
provided, that the provisions of Article X, Section 5, be and they 
are hereby stayed pending my further Order; and provided, that the 
operation of all the provisions of this Code be and they are hereby 
stayed as to all parties subject thereto insofar as they may apply to 
the products of the Gray Iron Foundry Industry, the Non-Ferrous 
Foundry Industry, and the Electrical Manufacturing Industry, for 
a period of GO days during which time the Code Authorities for the 
Gray Iron Foundry Industry, the Non-Ferrous Foundry Industry, 
the Electrical Manufacturing Industry, and the Marine Equipment 
Manufacturing Industry shall seek through conference to adjust 
their differences regarding the definition of this Code, and report 

8294^° 1044-131— — 34 (1) 



to me within GO days the results of such conferences; and provided 
further, that this stay may be extended by my further Order. 

Hugh S. Johnson, 
Administrator for Irulustricd Recovery. 

Api)roval rerommended : 
Bakton AV. Mukijay, 

Division Administrator. 

Washington, D.C, 

August 27, 193 J^. 



KEPORT TO THE PRESIDENT 

The President, 

Tlxe White Home. 
Sir: This is a report on the Code of Fair Competition for the 
Marine Equipment Manufacturing Industry of the United States, 
the hearing having been held in Washington on the 22nd day of 
May in accordance with the provisions of the National Industrial 
Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Hours of employment are limited to 8 a day and 40 a week except 
for executives and managers earning $35.00 or more weekly, sales- 
men and employees on emergency maintenance or repair work. 
During seasonal periods a tolerance of 48 hours in any 26-week 

Eeriod is permitted. Shipping employees may work 10 hours a day, 
ut are limited to 80 hours in any two-week period. Thne and one- 
half will be paid for all hours in excess of 8 a day and 40 a week 
except to shipping employees, who may be paid at the regular rate 
for 44 hours a week. 

Watchmen may work 56 hours a week. 

Forty cents an hour is established as a minimum wage for males 
and females except in the Southern area where 32^/20 an hour will 
be the minimum. 

CHILD LABOR 

No one under 16 years of age may be employed and no one under 
18 years of age may be employed at hazardous occupations. 

ECONOMIC EFFECT OF THE CODE 

In 1933 this Industry, which comprises approximately 50 firms, 
employed about 1,000 persons. Since the adoption of 40-hour week 
as provided in this Code, employment has increased to 1,500 persons 
in Jul3^ 1934, or an increase of 50%. 

The invested capital of tJie Industry is about $5,000,000.00, and 
the average annual sales of its products over the past 6 years is 
approximately $1,500,000.00. 

FINDINGS 

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

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, includ- 

(3) 



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

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

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

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

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

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

For these reasons, this Code has been approved by me subject 
to the following conditions: 

That a stay be placed on the waiting period between the date of 
fding and the elective date of revised price lists or revised terms 
and conditions of sale as provided in Article X. 

That a sta}- be placed on the operation of all the provisions of 
tliis Code insofar as they may apply to products of the Electrical 
Manufacturing Industi-y, the Non-Ferrous Foundry Industry, and 
the Gray Iron Foundry Industry for a period of 60 days, during 
which time the affected C'ode x\uthorities shall eiideavor to adjust 
their differences and report to me, and which stay may be extended 
l;y my further Order. 
Respectfully, 

Hugh S. Johnson, 

Adrmnistrator. 

August 27, 1934. 



CODE OF FAIR COMPETITION FOR THE MARINE EQUIP- 
MENT MANUFACTURING INDUSTRY 

Article I — Purposes 

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

Article II — Definitions 

The term " Marine Equipment Manufacturing Industry ", here- 
after referred to as the Industry, is defined to mean the fabrication 
or manufacture for sale of equipment exclusively for marine usage 
to include specifically the following lines : 

Air Ports 

Anchors, forged, cast-iron or malleable-iron,weighing 500 pounds 
or less. 

Binnacles 

Blocks, yacht, type of cast iron, malleable iron, brass or lignum 
vitae. 

Boat fenders 

Buoy rods 

Calking tools 

Cargo hooks, boat hooks, and poles 

Chocks 

Cleats 

Controls for marine engines (spark, throttle, and reverse gear) 

Deck plates 

Eye and chain plates 

Flag pole sockets 

Fog horns, whistles and sirens, — marine type 

Galley sinks of sheet metal and/or enameled iron 

Gasofine strainers 

Grapnels 

Lavatories, manually operated marine pump type, and fittings 
therefor 

Life preservers, other than cork 

Lighting fixtures, marine type 

Manhold plates, marine type 

Marine cushions 

Marine lock sets 

Marine mufflers 

Marine scrapers 

Marine shaft bearings of rubber, fibre, babbitt and/or brass 

Marine stoves other than wood or coal burning type 

(5) 



Mast and spar bands, belaying pins, and fittings therefor 

Mast track 

flooring bitts 

Navigation lights 

Oars and ])ad(lles (except sawmill operations) 

Oar tips and oar leathers 

Propellers, finished, bronze and/or nonferrous metal, (forty -eight 
(48) inches or less in diameter) 

Pumps, bilge (manually operated) of cast iron, cast brass, or sheet 
metal 

Pumps, galley and lavatory (manually operated) up to 2" diam- 
eter 

Pumps, gear, of bronze, up to V pipe size 

Rowlocks 

Sail slides 

Sea-cocks and through hull connections up to 2" 

Searchlights, marine type up to 14'' diameter 

Self bailers 

Sheet metal products of standard marine design, including venti- 
lators, buoys, scoops, screens, etc. 

Snails, boat and jib 

Stanchion fittings (except standard pipe fittings) 

Steering equipment (manually operated) for boats up to 100 feet 
long 

Thimbles, solid 

Toilets (manually operated), marine pump type, up to 3" inside 
cylinder diameter 

Turnbuckles, pipe and bronze 

UnderAvater hull fittings S" and less 

Windlasses or winches (manually operated) 

And such other items of equipment made particularly for marine 
usage when approved by the Administrator upon the recommenda- 
tion of the Code Authority. 

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 any one by whom 
such emi)loyee is compensated or employed. 

Th<> 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 liis or its own behalf. 

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

The term "Association ", as used herein, is defined to mean the 
Marine Eipiipmcnt Manufacturers Association. 

Article III — Hours 

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



Section 2. The provisions of this Article limiting hours of work 
shall not apply to traveling salesmen, or to persons engaged in a 
managerial or executive capacity who earn not less than thirty-five 
($35.00) dollars per week. 

Section 3. The maximum hours fixed in Section 1 shall not apply 
to any employee on emergency maintenance or emergency repair 
work involving breakdowns or protection of life or property, but in 
any such special case at least one and one-half (11/2) times the regu- 
lar rate shall be paid for all hours worked in excess of eight (8) 
hours in any day or forty (40) hours in any Aveek. 

Section 4. The maximum hours fixed in Section 1 shall not apply 
for six (6) weeks in any twenty-six (26) weeks' period, during which 
time, however, overtime shall not exceed eight (8) hours in any one 
(1) week; provided, however, that in any such special ca,se at kast 
one and one-half (II/2) times the regular rate of pay shall be paid 
for hours worked m excess of eight (8) hours in any day or forty 
(40) hours in any week. 

Section 5. The maximum hours fixed in Section 1 shall not apply 
to shipping department employees who may be employed forty (40) 
hours per week averaged over a two-week period, providing that 
no employee shall work in excess of ten (10) hours in any one day 
and provided further that in any such case at least one and one-half 
(11^) times the regular rate of pay shall be paid for all hours worked 
in excess of eight (8) hours in any one day or forty-four (44) hours 
in any one week. 

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

Section T. Watchmen ghall not be permitted to work in excess 
of fifty-six (56) hours in any week. 

Section 8. No emploj'er shall knowingly permit any employee 
to work for any time, which, when totaled with that already per- 
formed for another employer or employers, exceeds the maximum 
prescribed herein. 

Section 9. Employers who personally perform manual work or 
are engaged in mechanical operations shall not exceed the prescribed 
maximum number of hours. 

Article IV — Wages 

Section 1. No employee shall be paid less than at the rate of forty 
(40) cents per hour, except as herein otherwise provided. 

Section 2. No employee engaged in the production of boat oars 
and paddles, (excepting sawmill operations) , shall be paid less than 
at the rate of forty (40) cents per hour, excepting in the Southern 
wage area comprising the States of North Carolina, South Carolina, 
Florida, Georgia, Alabama, Tennessee, Mississippi, Arkansas, Loui- 
siana, Oklahoma, and Texas, in which no employee shall be paid 
less than at the rate of thirty-five (35) cents per hour. 

Section 3. No employee engaged in sewing and other operations 
in the production of life preservers, boat fenders, and similar prod- 
ucts, shall be paid less than at the rate of thirty-five (35) cents per 
hour, excepting in the Southern wage area comprising the States of 
North Carolina, South Carolina, Florida, Georgia, Alabama, Ten- 

82942° 1044-131 34 2 



8 

nessee, Mississippi, Arkansas, Louisiana, Oklahoma, and Texas, in 
which no employee shall be paid less than at the rate of thirty-two 
and one-half (321/2) cents per hour. 

Section 4. No clerical or office employee shall be paid less than at 
the rate of fifteen ($15.00) dollars per week. 

Section 5. Office boys and girls may be paid not less than eighty 
(80) per cent of the minimum salary provided for clerical or office 
emx^loyees in Section 4 of this Article; provided that the number 
of such office boys and girls so paid shall not exceed five (5) per cent 
of the total number of clerical or office employees in any establish- 
ment, but in any case an employer shall be entitled to employ one (1) 
such employee. 

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

Section 7. There shall be an equitable adjustment of all wage rates 
above the minimum unless this has already been done, but in no case 
shall the wages above minimum be decreased as a result of this 
adjustment. The action taken by each member shall be reported to 
the Code Authority within tliirty (30) days after the effective date 
and to the Administrator on request. 

Section 8. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees ; and where they displace men, they shall receive the same 
rate of earnings as the men they displace. The Code Authority shall 
within ninety days after the effective date of this Code file with the 
Administrator a description of all occupations in the Industry in 
which both men and women are employed. 

Seoiton 9. A person whose earning capacity is limited because of 
age, physical or mental handicap, or other infirmity, may be em- 
ployed on light work at a wage below the minimum established by 
this Code, if the employer obtains from the State authority, desig- 
nated by the United States Department of Labor, a certificate author- 
izing such person's employment at such wages and for such hours as 
shall be stated in the certificate. Such authority shall be guided by 
the instructions of the LTnited States Department of Labor in issu- 
ing certificates to such persons. Each employer shall file monthly 
with the Code Authority a list of all such persons employed by 
him, showing the wages paid to, and the maximum hours of work 
for such employee. 

Sec'iion 10. Every employer shall make payment of all wages due 
in lawful currency or by negotiable check tliercfor, payable on 
demand. These wages shall be exempt from any payments for pen- 
sions, insurance, or sick benefits other than those voluntarily paid by 
the wage earners or required by State laws. Wages shall be paid at 
lea.st at the end of every two-week period, and salaries at least at the 
end of every month. No employer shall withhold wages. The em- 
ployer or his agents shall accept no rebates directly or indirectly on 
such wages nor give anything of value or extend favors to any person 
for the purpose of influencing rates of wages or the working condi- 
tions of his employees. 



Section 11. No employee shall be dismissed or demoted by reason 
of making a complaint or giving evidence with respect to a violation 
of this Code. 

Article V — Gener^vl, Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industry. No person under eighteen (18) years of 
age shall be employed at operations or occupations which are hazard- 
ous in nature or detrimental to health. The Code Authority shall 
submit to the Administrator within ninety (90) days after approval 
of this Code a list of such operations or occupations. In any State 
an employer shall be deemed to have complied with this provision as 
to age if he shall have on file a valid certificate or permit duly signed 
by the Authority in such State empowered to issue employment or 
age certificates or permits showing that the employee is of the 
required age. 

Section 2. It is hereby provided: 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. 

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

That emplo3''ers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment approved 
or prescribed by the President. 

Section 3. No employer shall reclassify employees or duties of 
occupations performed or engage in any other subterfuge for the 
purpose of defeating the purpose or provisions of the Act or of 
this Code. 

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

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

Section 6. All employers shall post and keep posted copies of the 
labor provisions 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. 



10 

Article VI — Organization and Administkation 

Section 1. (a) During the period not to exceed sixty (CO) days 
following the effective date, the Code Committee of the Industry 
shall constitute a temporary Code Authority until the Code Author- 
ity is elected. 

(b) The Code Authority shall consist of seven (7) individuals, or 
such otlier number as may be approved from time to time by the 
Administrator, to be selected as hereinafter set forth. The Adminis- 
trator, in his discretion, may appoint not more than three (3) addi- 
tional members (without vote) to represent the Administrator or 
such groups or interests as he may provide. 

(c) Five (5) members of the Code Authority shall bo elected by 
members of the Industry who are members of the Association. This 
election shall be held at a meeting of the Association, such meeting 
to be called by the Association within thirty (30) days after the 
approval of this Code. Notice of such meeting shall be sent to all 
known members of the Industry who are members of the Association 
and each member shall be entitled to vote on the basis of one (1) 
vote for every $25,000.00 or fraction of sales up to and including 
$100,000.00; one (1) vote for every $50,000.00 or fraction from 
$100,000.00 to $200,000.00; one (1) vote for every $100,000.00 or 
fraction above $200,000.00. For this purpose the number of votes 
is to be determined from the sales figures of the products of this 
industry for the previous year as certified to an agent of the Code 
Authority. Only sales on which a member performs a substantial 
part of the fabrication are eligible for the calculation of voting 
power. This section is subject to the exception that no one member 
may cast more than twenty (20) per cent of the total number of 
votes cast. Fifty-one (51) per cent of the votes so cast shall be nec- 
essary for the election of each individual member. No member of 
the industry shall have more than one (1) representative on the 
Code Authority. 

(d) Two (2; additional members of the Code Authority shall be 
elected from and by the non-members of the Association if they so 
desire, at a meeting duly called for such purpose by a member vote 
to be cast either in person or by proxy, or by letter ballot. A plural- 
ity of the votes cast shall be necessary for election. 

(e) A vacancy in the membership of the Code Authority shall be 
filled in the above manner either at a special meeting or by a mail bal- 
lot, at the discretion of the remaining members of the Code Authority. 

Section 2. Each trade or industrial association directly or in- 
directly partici})ating in the selection or activities of the Code Au- 
thority siiall (1) impose no inequitable restrictions on membership, 
and (2) submit to the Administrator true copies of its articles or 
association, by-laws, regulations, and any amendments when made 
thereto, together with sucli other information as to membership, 
organization, and activities as tlie Administrator may deem necessary 
to effectuate tlio purposes of the Act. 

SiicnoN 3. In order that the Code Authority sliall at all times be 
tnily representative of the Industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe such 
liearings as he may deem proper; and thereafter if he shall find that 



11 

the Code Authority is not truly representative or does not in other 
respect-s comply with the provisions of the Act, may require an ap- 
propriate modification of the Code Authority. 

Section 4. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor shall 
any member of the Code Authority be liable in any manner to anj^one 
for any act of any other member, officer, agent or employee of the 
Code Authority. Nor shall any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties hereunder, 
be liable to anyone for any action or omission to act under this Code, 
except for his own wilful malfeasance or non-feasance. 

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

Powers and Duties 

Section 6. Subject to such rules and regulations as may be issued 
by the Administrator, the Code Authority shall have the following 
powers and duties, in addition to those authorized by other provisions 
of this Code. 

(a) To insure the execution of the provisions of this Code and to 
provide for the compliance of tlie 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 addi- 
tion to information required to be submitted to the Code Authority, 
members of the Industry subject to this Code shall furnish such sta- 
tistical information as the Administrator may deem necessary for 
the purposes recited in Section 3 (a) of the Act to such Federal and 
State agencies as he may designate; provided that nothing in this 
Code shall relieve any member of the Industry of any existing obli- 
gations to furnish reports to any Govermnent agency. No individual 
report shall be disclosed to any other member of the Industry or any 
other party except to such other Governmental agencies as may be 
directed by the Administrator. 

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

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



12 

(f) 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 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. 

(^) To appoint a Trade Practice Committee w^hich shall meet 
with the Trade Practice Committees appointed under such other 
codes as may be related to the Industry for the purpose of formulat- 
ing fair trade practices to govern the relationships bet wen employ- 
ers under this Code and under such other codes to the end that such 
fair trade practices may be proposed to the Administrator as amend- 
ments to this Code and such other codes. 

(h) To recommend to the Administrator fair and equitable defini- 
tions of customers. Upon approval by the Administrator such 
definitions shall be used by all members of the Industry. 

Article VII — Assessments 

Section 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 may deem necessary 
(1) an itemized budget of its estimated expenses lor 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. 

Section 2. 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 Adminis- 
trator. Only members of the Industry compljnng with the Code 
and contributing to the expenses of its administration as hereniabove 
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 an}'^ emblem or insignia of the National 
Recovery Administration. 

Section 3. The Code Authority shall neither inciu* 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 



13 

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. 

Article VIII — Cost Finding and Accounting 

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 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 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. 

Article IX — Costs and Price Cutting 

Section 1. Pricing Practices: 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 complain 
to the Code Authority that any filed price constitutes unfair compe- 
tition as destructive price cutting, imperiling small enterprise or tend- 
ing toward monopoly or the impairment of code wages and working- 
conditions. The Code Authority shall within 5 days afford an 
opportunity to the member filing the price to answer such complaint 
and shall within 14 days make a ruling or adjustment thereon. If 
such ruling is not concurred in by either partj^ 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) Wlien 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 be- 
low the stated minimum price of such product, in violation of Sec- 

'tion 2 hereof, is forbidden. 

Section 2. Emergency Provisions: 

(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 product within the in- 
dustry for a limited period is necessary to mitigate the conditions 
constituting such emergency and to effectuate the purposes of the 



14 

Act, tho Code Authority may cause an impartial agency to investi- 
gate costs and to reconunenJ to the Administrator a determination 
of the stated minimum price of the product affected by the emer- 
gency 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 effeetuate the purposes of the National In- 
dustrial Kecovery 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. 

Article X — Price Lists ^ 

Section 1. Within thirty (30) days after the effective date of this 
Code, each member of the Industry shall file with a confidential dis- 
interested agent of the Code Authority a complete schedule indi- 
vidually prepared by him of all his price lists, discounts, rebates, 
allowances, and all other terms or conditions of sale, hereinafter in 
this Article referred to as " price terms " for his various classes of 
trade to become effective on date of receipt by such confidential 
agent. All new or revised price terms shall be filed with a confiden- 
tial agent of the Code Authority and shall become effective on the 
tenth (10th) day after actual receipt by such confidential agent. 
Immediately upon receipt thereof, such agent shall notify said mem- 
ber of the time of such receipt. 

When any member of the Industry has filed any revision, such 
jnember shall not file a higher price within forty-eight (48) hours. 

No member of the Industry shall sell or offer to sell any products 
of the Industry, for which price terms have been filed pui*suant to 
the provisions of this Article, except in accordance with such price 
terms. 

No member of the Industry shall enter into any agreement, under- 
standing, combination or conspiracy to fix or maintain price terms, 
nor cause or attempt to cause any member of the Industiy 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. 

Copies of all filed price terms or revisions or parts thereof with 
notice of effective date thereof shall be sent simultaneously and 
immediately to all customers who have applied therefor and offered 
to pay the cost of preparation and distribution, and to all members 
of the Industry who have prices filed ; provided, however, that such 
mailings to members shall cover only the same class of trade and 
include only prices on the items on which the mail-receiving mem- 
ber has filed. Said lists or revisions or any part thereof shall 
not be made available to any person until released to all members 

' See paragraph 2 of order approving this Code. 



15 

of the Industry and their customers, as aforesaid; provided, that 
prices filed in the first instance shall not be released until the expira- 
tion of the aforesaid thirty (30) day period after the approval of 
this code. The Code Authority shall maintain a permanent file of 
all price terms filed as herein provided, and shall not destroy any 
part of such records except upon written consent of the Admin- 
istrator. Upon request the Code Authority shall furnish to the 
Administrator or any duly designated agent of the Administrator 
copies of any such lists or revisions or price terms. 

Any member of the Industry may tile, if he so desires, revisions 
of his price terms to meet a lower filed price, which shall become 
effective on the date when the revised list first filed becomes effective. 

All prices filed with the confidential agent of the Code Authority 
shall be available to all interested parties as each may be concerned. 

Section^ 2. In the case of inquiries for bids on a quantity of 
catalogued goods of one or more items large enough materially to 
reduce the cost of manufacture and distribution, a manufacturer may 
file a special price for the specific quantity or quantities which the 
confidential agent of the Code Authority shall immediately forward 
to all manufacturers of the Article on record, stating size, quantity 
and price, but withholding the name of the party asking for the bid. 

The special price so filed is not to be quoted the customer until 
ten days after filing except that in case of emergency when ten days' 
dela}'^ in completing the transaction would be serious, the manufac- 
turer by agreeing to accept billing for the telegrams resulting, may 
file by wire and request the confidential agent of the Code Authority 
to notify by wire in which case the price will be quotable on receipt 
of a telegram from said confidential agent that all manufacturers of 
the item or items have been notified by telegram. 

Section 3. If a manufacturer receives an inquiry or inquiries 
for goods to be made to buyers' special design, no filing of price 
shall be necessary but such goods shall not be sold below the filed 
price for a similar standard article or design if such price exists. 
If the article is not similar to a standard article or design, no price 
need be filed and no report made to said confidential agent. 

Section 4. Prices may be f .o.b. factory with full freight prepaid 
or allowed on shipments of 100 lbs. or more or on net amount of 
invoice of $25.00 or more. Wlien the buyer specifies other than the 
cheapest freight route the increase in freight caused by his routing 
shall be added to the invoice for the material. Shipments by parcel 
post, express, or shipments by freight weighing less than 100 lbs. 
shall be f .o.b. shipping point with no freight allowed ; except that in 
New York City any shipment, regardless of weights thereof, may be 
delivered to store door without charge. 

Section 5. Members, selling from warehouses at other than their 
point of manufacture, shall include in their prices a sum sufficient 
to cover all costs incident to such branch warehouse service. The 
provisions of this Section shall not apply to boat oars and paddles 
or to life preservers, fenders or marine cushions.^ 

Section 6. Returned goods shall be credited to the purchaser 
thereof in full whenever the goods are returned because of error 

' See paragraph 2 of order approving this Code. 



16 

or negligence on the part of the manufacturer, or defects in quality 
or workmanship or impaired credit. 

Section 7. Si^ecial goods made and shipped in compliance with 
order specifications shall not be returnable, except for defects in 
quality or workmanship or impaired credit. 

Sechon 8. Standard goods or special adaptations of standard 
goods shipped in accordance with customer's order are returnable 
But in no case except with freight prepaid and subject to a charge 
by the factory to retire any outgoing freight prepaid and/or cost 
of reconditioning, if any, or handling. 

Article XI — Unfair Trade Practices 

The following described acts shall constitute unfair practices. 
Any member of the Industry who shall directly or indirectly, through 
any officer, employee, agent or rej^resentative, use or employ any of 
such unfair practices shall be guilty of a violation of this Code: 

Section 1. To give, permit to be given, or directl}' offer to give, 
anything of value, for the purpose of influencing or rewarding the 
action oi any employee, agent or representative of another in relation 
to the business of the employer of such employee, the principal of 
such agent or the represented party, without the knowledge of such 
employer, principal or party. This commercial bribery provision 
shall not be construed to prohibit free and general distribution of 
articles commonly used for advertising except so far as such articles 
are actually used for commercial bribery as hereinabove defined. 

Section 2. To continue to employ an employee or agent who splits 
witli the buyer his commission or other compensation from the seller 
for the purpose of or with the effect of influencing a sale. 

Section 3. Knowingly withholding from or inserting in any quo- 
tation or invoice any statement that makes it inaccurate in any ma- 
terial particular. 

Section 4. Secretly offering or making any payment or allow- 
ance of a rebate, refund, commission, credit, unearned discount or 
excess allowance, whether in the form of money or otherwise, or 
secretly offering or extending to any customer any special service 
or privilege not extended to all customers of the same class, for the 
purpose of influencing a sale. 

Section 5. Issuance of credit by a manufacturer for the return of 
unused products not jn'oduced or sold by said manufacturer. 

Section G. Payment by a manufacturer of any part of the cost 
of periodical advertisements to be published in the name of a cus- 
tomer, or customers, or payment for any part of any catalog or 
House Organ published by a customer, either direct or by advertising 
therein, whicli lias the effect of secretly giving the customer a rebate, 
refund, or discount on goods sold to him, except that it shall be fair 
practice to loan cuts of miuiiifacturers' products to customers or to 
permit them to use without cliarge any pages of type left standing 
by a manufacturer with a pi-inter. 

Section 7. Shipping prochicts of the Industry on ccuisignment 
except under circumstances to be defined by the Code Authority where 
peculiar circumstances of tho Industry reciuirc such practices subject 
to the approval of the Administrator. 



17 

Section 8. Selling or offering to sell any products of the Industry, 
except boat oars and paddles, under any form of guarantee against 
decline in price. 

Section 9. Wilfully inducing or attempting to induce the breach 
of existing contracts between competitors and their customers by any 
false or deceptive means, or interfering with or obstructing the per- 
formance of au}'^ such contractual duties or services by any such 
means, with the purpose and effect of hampering, injuring or em- 
barrassing competitors in their business. 

Section 10. Branding or marking or packing any goods in any 
manner which is intended to or does deceive or mislead purchasers 
with respect to the brand, grade, quality, quantit}^, origin, size, sub- 
stance, character, nature, finish, material, content or preparation of 
such goods. 

Section 11. Defaming a competitor by falsely imputing to him dis- 
honorable conduct, inability to perform contracts, questionable credit 
standing, or by other false representation, or by falsely disparaging 
the grade or quality of his goods. 

Section 12. Publishing or circulating unjustified or imwarranted 
threats of legal proceedings which tend to or have the effect of har- 
assing competitors or intimidating their customers. 

Section 13. Accepting an order or contract at a definite price, for 
an indefinite quantity or without a definite time limit at the ex- 
piration of which any unshipped portion of the order shall be offered 
for shipment and invoiced as if shipped. 

Section 14. Cancelling or permitting the cancellation of orders 
or unshipped portions of orders for special goods or for specially 
large quantities of regular goods, made in compliance with terms or 
order, before securing from purchaser full payment for all costs 
incurred by the manufacturer in relation to the unshipped portion 
and a further payment on the shipped portion of an advance in price 
proportional to the increased cost of production of the smaller 
quantity. 

Section 15. To imitate or sinudate the trade mark, trade name, 
package, wrapper, or label of a competitor's product to such a de- 
gree as to deceive or have a tendency to deceive customers. 

Section 16. Discrimination between purchasers of the same defi- 
nition by the sale of any article having a published price, at an}^ 
price below the seller's published price by means of direct or indirect 
price concessions, or by means of any privilege not extended to pur- 
chasers generally, except as provided in Article IX. 

Section 17. To give more favorable discounts and/or terms than 
the following, except boat oars and paddles : 

(a) No more favorable terms than two (2) percent discount shall 
be granted a customer on invoices dated from the 1st to the 15th of 
any month, if payment is mailed or otherwise made by the 25th of 
the same month; or on invoices dated from the 16th to the end of 
the month, if payment is mailed or otherwise made by the 10th of 
the next succeeding month. 

(b) Terms shall be net cash 30 days from discount date when 
cash discount is not taken. 

(c) Except that ten days' additional time on all terms and dis- 
counts under this Section may be allowed on shipments to or from 
the Pacific Coast or Alaska. 



18 

(d) The rate of interest on all past-due invoices, or on any unpaid 
portions thereof, shall be not less than the legal rate of interest of 
the respective state in which the sale is made, from the due date 
of invoice until paid and shall be charged whenever a debtor has 
failed to ])ay for goods purchased within terms as set forth in the 
foregoing j)aragraphs of this Subsection, when said interest amounts 
to five ($5.00) dollars or more. 

Section 18. Granting moie favorable discounts and/or terms in 
the sale of boat oars and paddles than the following: 

(a) Two (2) percent discount for payment within ten (10) days, 
or payment in full within thirty (SO) days of invoice, except that 
frequent buyers during an}^ month may be allowed two (2) percent 
discount for pa3'ment on or before the tenth (10th) of the following 
month. 

(b) In the Middle Western States only, orders placed in the fall 
by large jobbers for shipment in January or February may be in- 
voiced not later than April 1 and shall be payable not later than 
May 10 of the delivery year, 

(c) In the Pacific Coast States only, such shipments may be in- 
voiced not later than Fcbruaiy 15 and shall be payable not later 
than March 1 of the delivery yeai\ 

(d) The rate of discount allowed on prepayment of invoices shall 
not: exceed six (6) per cent per annum. 

Article XII — Monopolies 

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

Article XIII — Modifications 

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

Section 2. Such of the provisions of this Code as are not required 
to be included herein by the Act may, with the approval of the 
Administrator, be modined or eliminated in such manner as may 
be indicated by the needs of the public, by changes in circumstances, 
or by experience. Such modifications or eliminations may be based 
on applications by the Code Authority or any member of the In- 
dustry. All the provisions of this Code, unless so modified or 
eliminated, shall remain in effect until June 16, 1935. 

Article XIV — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will bo made more difficult of consununation if prices of goods and 
services increase as rapidly as wages, it is recognized that price 
increase except such as may be reciuiivd to meet individual costs 
should be delayed, but when made, such increases should, so far as 



19 

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

Article XV — Effective Date 

This Cost shall be effective at 12:01 A.M. on the tenth (10th) 
calendar da};- after its approval by the Administrator and shall 
continue in effect until June 16, 1935, or the earliest date prior there- 
to on which the President shall by proclamation, or the Congress 
shall by Joint Resolution, declare that the emergency recognized in 
Section 1 of the National Industrial Recovery Act has ended. 



Approved Code No. 509. 
Registry No. 1114-31. 



O 



Approved Code No. 510 
CODE OF FAIR COMPETITION 

FOR THE 

ASSEMBLED WATCH INDUSTRY 
As Approved on August 27, 1934 



ORDER 



Approving Code of Fair Competition for the Assembi^d Watch 

InDTJSITvY 

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 Assembled Watch Industry, and hearing 
having been duly held thereon and the annexed report on said Code, 
containing findings with resi>ect thereto, having been duly made and 
directed to the President : 

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

(1) That Section 9, Article YlU be deleted and in lieu thereof 
the following paragraph be, and it is hereby inserted : 

" No member of the Industry shall permit the return of any watch 
or watch movement after 60 days from the date of invoice, except 
for defects of material or workmanship." 

(2) That Section 14, Article VIII be amended to read as follows: 
" No member of the Industry shall attempt to induce the breach 

of an existing contract between a competitor and his customer or 
source of supply; nor shall any such member interfere with or ob- 
struct the performance of such contractual duties or services." 
^3) That Section 2, Article III be amended to read as follows: 
" No member of the Industry shall employ, or cause to be em- 
ployed, office or clerical emplovces for more than forty (40) hours 
per week, averaged over any five (5) weeks' period, provided that 

82043° 1044-132 34 (21) 



22 

no such emploj'oe shall be employed more than forty-eight (48) 
hours in any one week." 

and provided further that within ninety days I may direct that 
there be a further hearing on such of the provisions of said Code 
as I may desii^nate, and that any order which I may make after 
such hearing shall have the effect of a condition on the approval of 
said Code. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 

Joseph F. Battley, 

Acting Division Administrator, 

Washington, D.C, 

August ^, 193J^ 



REPOET TO THE PRESIDENT 

The President, 

The White Hov.se. 
Sir: This is a report on the Code of Fair Competition for the 
Assembled Watch Industry, the hearing having heen conducted in 
Washirigton on March 15, 1934, in accordance with the provisions of 
Title I of the National Industrial Recovery Act. The sponsoring 
association claims to represent 50% of the members of the Industry, 
whose members do 80% of the total volume of business in the 
Industry. 

HOURS AXD WAGES 

This Code provides that no employee shall work more than forty 
(40) hours in any one (1) week nor more than eight (8) hours in 
any twentj^-four (24) hour period nor more than six (6) days in 
any seven (7) day period, except during peak periods. During the 
months of September, October, November and December employees 
may be permitted to work not to exceed more than forty-eight (48) 
hours in any one (1) week provided further, that such employees 
shall receive at least one and one-half (IV2) times their respective 
rates of pay for overtime in excess of forty (40) hours in any one 
(1) week. Office and clerical employees may work not more than 
forty (40) hours per week averaged over a period of three (?>) 
months, provided further that such employees shall not be emplo5^ed 
more than fort^^-eight (48) hours in any one (1) week and that no 
hours worked by such employees shall exceed five hundred twenty 
(520) hours in any thirteen (13) weeks period. Exception is made 
to those in a managerial or executive capacity who earn thirty-five 
($35.00) dollars or more per week, and to traveling salesmen. The 
minimum rate of pay for all employees is forty (400) cents per 
hour except for learners and office boys and girls, who shall receive 
80% of the minimum. Office and clerical employees shall be paid 
not less than fourteen ($14.00) dollars per week. 

FINDINGS 

The Deputy Administrator in his final report to me on. caid Code, 
having found as herein set forth and on the basi^ of ad th.e pro- 
ceedin<!:s in this matter; 

I fiiid that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of tlie National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among trade groups, 

(23) 



24 

by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanctions and supervision by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
hy avoiding undue restriction of production (except as may be tem- 
porarily requirexi), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relie\'in^ unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

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

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

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

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

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

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

Hugh S. Johnson, 

A dmmistrator. 
August 27, 1934. 



CODE OF FAIR COMPETITION FOR THE ASSEMBLED 
WATCH INDUSTRY 

Article I — Purposes 

Section 1. To effectuate the policies of Title I of the National 
Industrial Recovery Act, this Code is established as a Code of Fair 
Competition for the Assembled Watch Industry, and shall be the 
standard of fair competition for such industry and shall be bind- 
ing upon every member thereof. 

Article II — Definitions 

Section 1. The term " industry ", as used herein, includes all 
enterprises engaged in the importing and/or assembling of imported 
watches, watch cases, watch movements or parts thereof; also pur- 
chasers for resale of imported watches and/or movements which 
may be confiscated and offered for sale by the United States 
Government. 

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

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

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

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

Artici^ III — Hours 

Section 1. No employee shall be permitted to work more than 
.forty (40) hours in any one (1) week or eight (8) hours in any 
twenty-four (24) hour period, except as hereinafter provided. No 
employee shall be permitted to work more than six (6) days in any 
seven (7) day period. A normal work day shall not exceed eight (8) 
hours. During the seasonal peak periods, during the months of Sep- 
tember, October, November and December, employees may be per- 
mitted to vrork not to exceed forty-eight (48) hours in any one (1) 
week only when the Code Authority has granted such permission, 
but provided further, that such employees shall receive at least one 
and one-half (l^^) times their respective rates of pay for overtime 
in excess of forty (40) hours in any one (1) week, or 8 hours in 
any 24 hour period. 

(25) 



26 

Section 2. No member of the industry shall employ, or cause to 
be employed, office or clerical employees for more than forty (40) 
hours per week, averaged over any consecutive three (3) months* 
period, provided that no such employee shall be employed more 
than forty-eight (-18) houi-g in any one week; and provided further 
that the total number of hours "worked by such emploj^ee shall not 
exceed five hundred and twenty (520) hour3 in any thirteen (13) 
weeks' period.^ 

Section 3. The provisions of this Article shall not apply to travel- 
ing salesmen or to employees engaged in emergency maintenance or 
emergency repair work, or to persons employed in a managerial or 
executive or supervisory or examining capacity who earn regularly 
thirty-five ($35.00) dollars per week or more; provided, however, 
that employees engaged in emergency maintenance and emergency 
repair work shall be paid at one and one-half (1^2 ) times their 
normal hourly rate for all hours worked in excess of forty (40) 
hours per week and eight (8) hours per day. 

Section 4. No employer shall knowingly permit any employee to 
work for any time which, when added to the time spent at work for 
another employer or employers, exceeds the maximum permitted 
herein. 

Section 5. Watchmen may be permitted to work a maximum of 
fifty-six (56) hours per week, but no watchman shall be employed 
more than six (6) days in any seven (7) day period. 

Section 6. Members or officers of members of the industry when 
doing productive Avork shall be restricted to the same hours as 
employees. 

Article IV — Wages 

Section 1. No employee, except as otherwise provided, shall be 
paid less than forty (40) cents per hour. 

Section 2. Office and clerical employees shall be paid not less 
than fourteen ($14.00) dollars per week. 

Section 3. (a) Persons learning an occupation shall be paid not 
less than eighty per cent (80%) of the minimum wage which prevails 
in such occupation, but in no case less than eighty per cent (80%) 
of the minimum prescribed in this Code. Learners shall not be 
employed as such for a period in excess of twelve (12) weeks irre- 
spective of whether they are or have been employed by one or more 
employers. 

(b) Office boys and girls shall be paid at not less than eighty 
per cent (80%) of the minimum rate as herein provided. (Office 
boys and girls and learners shall not at any time exceed five per cent 
(5%) of the total number of employees, provided, however, that 
each employer shall be entitled to at least one.) 

Section 4, The minimum rate of pay shall be paid irrespective 
of whether an employee is actually compensated on a time rate, 
piece-work, or other basis. 

Section 5. Equitable adjustment of compensation of employees 
receiAang more than the minimum rates of pay shall be made by 
all employers who have not heretofore made such adjustments, and 
all employers shall within sixty (60) days after the effective date 

> Amended. See paragraph 2 (8) of order approving this Code. 



27 

of this Code, report in full to the Code Authority, for submission 
to the Adiuinistrator, the action taken in pursuance of this provi- 
sion, provided, however, that in no event shall hourly, weekly or 
piece-work rates be reduced. 

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

Section 7. A person whose earning capacity is limited because 
of age, phj'sical or mental handicap, or other infirmity, may be 
employed on light work at a wage below the minimum established 
by this Code, if the employer obtains from the state authority, 
designated by the United States Department of Labor, a certificate 
authorizing such person's employment at such wages and for such 
hours as shall be stated in the certificate. Such authority shall be 
guided by the instructions of the United States Department of Labor 
in issuing certificates to such persons. Each employer shall file 
monthly with the Code Authority a list of all such persons em- 
ployed by him, showing the w^ages paid to, and the maximum hours 
of work for such employee. 

Section 8. Wages shall be paid at least semimonthly in lawful 
currency or by negotiable check therefor payable on demand. These 
wages shall be exempt from any payment, pensions, insurance or 
sick benefits, other than those voluntarily paid by the wage earner or 
required by law. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the industry. No person under eighteen (18) j'ears of 
age shall be employed at operations or occupations which are haz- 
ardous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator within sixty (60) days after the effective 
date, a list of such operations or occupations. In any State a mem- 
ber of the industry shall be deemed to have complied with this pro- 
vision as to age ii he shall have on file a certificate or permit duly 
signed by the Authority in such State empowered to issue employ- 
jnent or age certificates or permits showing that the employee is of 
the required age. 

provisions from the act 

Section 2. It is hereby provided : 

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

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

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

82943" 1C44-132 34 2 



28 

SEcnoN 3. Members of the industry shall not reclassify employees 
or duties of occupations performed, or engage in any other subter- 
fuge for the purpoh^e of defeating the purposes or provisions of the 
Act or of this Code. 

Section 4, Every employer shall provide for the safety and health 
of employees during tlie hours and at the places of their employment. 
Standards for safety and health shall be submitted by the Code 
Authority to the Administrator within six (G) montlis after the 
effective date of this Code. 

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

Section 6. All members of the industry shall post and keep posted 
complete copies of the wage and hour and general labor provisions 
of this Code in conspicuous places accessible to employees. Every 
member in the industry shall comply with all the rules and regula- 
tions relative to the posting of the provisions of the Co<le of Fair 
Competition which may from time to time be prescribed by the 
Administrator, 

Section 7. (1) A person may be permitted to engage in homework 
at the same rate of wages as is paid for the same type of work per- 
formed in the factory or other regular place of business if a certifi- 
cate is obtained from the State authority or other offic<?r designated 
by the United States Department of Labor, such certificate to be 
granted in accordance with instructions issued by the United States 
Department of Labor, provided : 

(a) Such person is physically incapacitated for work in a factory 
or other regular place of business and is free from any contagious 
disease; or 

(b) Such person is unable to leave home because his or her services 
are absolutely essential for attendance on a person who is bedridden 
or an invalid and both such persons are free from any contagious 
disease. 

(2) Any employer engaging such a person shall keep such cer- 
tificat<3 on file and shall file with the Code Authority for the trade 
or industry or subdivision thereof concerned the name and address 
of each worker so certificated. 

Section 8. No employer shall dismiss or demote any employee 
for making a complaint or giving evidence with respect to an 
alleged violation of the provisions of this Code. 

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

Authority 

organization and constttutign 

Section 1. A Code Authority is hereby established to cooperate 
with the Administrator of this Code and shall consist of seven (7) 
members of the industry elected through a fair method of selection 
approved by the Administrator. 



29 

Section 2. Vacancies in the personnel of the Code Authority 
selected by the industry shall lie filled by the remaining members 
of the Code Authority subject to the approval of the Administrator. 

Sectiox 3. In addition to membership as above provided, there 
may be three (3) members, without vote, to be known as Adminis- 
tration members, to be appointed by the Administrator to serve for 
such terms as he may specify, without compensation from the 
industry. 

Secttox 4. 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 restriction on membership, and 
(2) submit to the Administrator true copies of its articles of asso- 
ciation, by-laws, regulations, and any amendments when made thereto, 
together with such other information as to membership, organiza- 
tion, and activities as the Administrator may deem necessary to 
effectuate the purposes of the Act. 

Section 5. In order that the Code Authority shall at all times be 
truly representative of the industry and in other respects comply with 
the 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 
aj)propriate modification of the Code Authority. 

Section 6. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner 
to any one for any act of any other member, officer, agent or em- 
ployee of the Code Authority. Nor shall any member of the Code 
Authority, exercising reasonable diligence in the conduct of his 
duties hereunder, be liable to anyone for any action or omission to 
act under this Code, except for his own wilful malfeasance or non- 
feasance. 

Section 7. If the Administrator shall at any time determine that 
any action of the Code Authority or any agency thereof may be 
unfair or unjust or contrary to the public interest, the Administra- 
tor may require that such action be suspended pending final action, 
in order to afford an opportunity for investigation of the merits of 
such action and further consideration by such Code Authority or 
agency. Final action 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. The Assembled Watch Industry Code Authority may 
incorporate under the laws of any State of the United States or of 
the District of Columbia, or may assume or adopt such existing 
corporate form under any of such laws as it may deem appropriate 
for the proper performance, as and from the effective date, of its 
activities, powers and duties hereunder, such corporation or cor- 
porate form to be not for profit and t^ be known as the Assembled 
Watch Industry Code Authority, Incorporated; provided that the 
powers, duties, objects and purposes of the said corporation shall, 
to the satisfaction of the xldministrator, be limited to the powers, 
duties, objects and purposes of the Assembled Watch Industry Code 



30 

Authority as pi-ovlded in this Code; provided further, that the 
existence of the .-aid rorporation shall be (luring the term of the Code; 
and provided, further, that the Code Authority shall submit to the 
Administrator, for his approval, its proposed Certificate of Incor- 
poration and proposed liy-laws, and no amendments of either shall 
be made without the like prior approval of the Administrator; 
and provided, further, that the Code Authority shall submit, with 
its proposed Certificate of Incorporation and Bylaws, the written 
opinion of an attorney-at-law qualified in and conversant with the 
laws of the jurisdiction in which the Code Authority seeks to be 
incorporated, as to the nature and extent of the jurisdiction, powers 
and authorities exercisable by the State in question and its agencies 
over the activities of the Code Authority as a corporation, sup- 
porting such opinion by citation of relevant authorities and sup- 
plementing the same with a table, certified to be complete, of all 
laws, statutes and other regulatory provisions governing corpora- 
tions created pursuant to the laws under which the Code Authority 
seeks to be incorporated. 

If at any time, the Administrator shall detennine that the cor- 
porate status assumed by the Code Authority is interfering with the 
proper exercise of its powers and duties under this Code, or with 
the effectuation of the policies or purposes of the Act, he may, 
after such notice and hearing as he may deem necessary, require 
an api)ropriat<» modification of the structure of the Corporation, 
(if consistent with the law of the State of Incorporation) the sub- 
stitution 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 xA.uthority truly representative of the 
industry or such other actions as he may deem expedient. 

POWERS AND DUTIES 

Section 9. Subject to such rules and regulations as may be issued 
by the Administrator, the Code Authority shall have the following 
powers and duties, in addition to those authorized by other pro- 
visions of this Code. 

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

(b) To ado])t bylaws and rules and regulations for its procedure. 

(c) To obtain from members of the industry such information 
and reports as are required for the administration of the Code. 
In addition to information required to be subnntted to the Code 
Authority, members of the industry subject to this Code shall furnish 
such statistical information as the Administrator sliall 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 nothing 
in this Code shall relieve any member of the industry of any exist- 
ing obligation to furnish reports to any government agency. No 
individual report shall be disclosed to any other member of the 
industry or to any other ])arty except to such other governmental 
agencies as may be directed by the Administrator except as herein- 
after provided. And except further as provided in the Act, all sta- 



31 

tistical and other information, filed or obtained in accordance with 
the provisions of this Article, shall be confidential and shall be 
filed with a firm of public accountants in good standing or with 
such other agency as tne Code Authority may designate. No statis- 
tical or other information furnished by individual members of the 
industry shall be disclosed to any other member of the industry 
(whether or not be he a member of the Code Authority), nor to 
anyone in the employ of such other member ; providing however that 
such statistical or other information may be disclosed to members 
of the Code Authority for the purpose of facilitating the adminis- 
tration or enforcement of the Code, but only upon the written con- 
sent of one of the Administrator's appointees to the Code Authority. 

(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. 

To designate representatives to act on a joint committee with rep- 
resentatives of any other Code Authority of a related industry, hav- 
ing reciprocal provisions in its code, to consider questions regarded 
by either Code Authority as of common concern with reference to the 
effectuation of the policie-s of the Act (including questions as to 
whether the operations of a given concern come within the juris- 
diction of this or any other code), and to take such action as they 
may jointly agree to be appropriate, subject to the veto of the 
Administrator. 

(f) 1. It being found necessary in order to support the admin- 
istration of this Code and to maintain the standards of fair compe- 
tition established 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 bj 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 regu- 
lations pertaining thereto issued by the Administrator. Only mem- 



32 

bers of Ihc industry complying with the Code and contributing to 
the expenses of its administration as hereinabove provided (unless 
dulj' exempted from m.aking such contributions), shall be entitled to 
l^articipatc 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 
substantially in excess of the amount thereof as estimated in its ap- 
proved 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. 

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

Skctiox 10. The Code Authority shall require to such extent, in 
such form and at such time as may be prescribed by the Code Au- 
thority, members of the industrj^ to prepare and file with a firm of 
public accountants in good standing, to be designated by the Code 
Authorit}^, such information as may be required by the Administrator 
in order to record the functionmg or observance of this Code, 
including : 

(a) Monthly reports of employment, showing for each employ- 
ment classification, the average number of employees, and such addi- 
tional information as is required to establish the observance or non- 
observance of the wage and hour provisions of this Code ; 

(b) (1) Monthly reports of complete watch movements (in units) 
purchased and sold and dollar inventories of parts j (2) month-end 
inventories of the foregoing with proper description; (3) within 
two (2) weeks after the effective date of this Code (unless the time 
in further extended by the Code Authority, stich extension however 
not to exceed thirty (30) days after such effective date), a report 
containing a complete list of all imported watches or watch move- 
ments whether complete or incomplete, and watch cases which the 
member has in stock or out on memorandum or consignment, or in 
which he has any direct or indirect ownership; such list to contain 
a proper description as to size, shape, jeweling, adjustment, and for- 
eign manufacturer's or importer's name and the trade mark or name 
appearing on the movements. This list shall also contain the dollar 
value of foreign made parts of watches in the members stock on the 
effective date of this Code; (4) any other information which the 
Code Authority may require. Such reports and other information 
shall be furnished as of such date as the Code Authority may direct. 

The foregoing information shall be classified in such manner as 
the Code Authority may determine, havin<j particularly in view the 
tracing of importea nierchandise (whether imported for own account 
or purchased from other domestic sources) irom the port of entry 
to the customer. 

Sr-OTiON' 11. Each member of the industry shall keep accurate and 
complete records of its transactions in the industry whenever such 



S3 

records may be required under any of the provisions of this Code, 
and shall furnish accurate reports based upon such records concern- 
ing any of such activities when required by the Code Authority or 
the Administrator. If the Code Authority or the Administrator 
shall determine that substantial doubt exists as to the accuracy of any 
such report, so much of the pertinent books, records and papers of 
such member as may be required for the verification of such report 
raay be examined by an impartial agency, agi-eed upon between the 
Code Authority and such member, or, in the absence of agreement, 
appointed by the Administrator. In no case shall the facts disclosed 
by such examination be made available in identifiable form to any 
competitor, whether on the Code Authority or otherwise, or be given 
any other publication, except such as may be required for the proper 
administration or enforcement of the provisions of this Code. 

Section 12. The Code Authority shall consider the problem aris- 
ing from the practice of smuggling into this country of watches, 
watch movements, and/or watch cases, and parts of all the fore- 
going, with a view to reducing, as far as possible (1) the effects of 
such practice upon the honestly conducted business, whether in this 
industry or in the domestic watch manufacturing industry, and upon 
unemployment and wages of such industries; and (2) the cost to 
the Government arising from loss of import duties and of taxes upon 
the profits of such industries. The Code Authority shall make 
recommendations to the Administrator and/or to the other ap- 
propriate government authorities, as to forms of record-keeping, 
both by the importer and the custom's authorities ; as to identification 
of imported merchandise upon which duty has been paid; as to in- 
creasing the premimn money to informers, and as to the disposal of 
smuggled merchandise seized by the United States Government. 

Section 13. (a) Within two (2) weeks of the effective date here- 
of (unless such time is further extended by the Code Authority, 
such extension not to exceed thirty (30) days from the efliective 
date of this Code) each member of the industry shall register with 
the Code Authority the title under which its business is conducted, 
its business address, and the names arid titles of its officers or firm 
members and shall at that time apply for a mark, insignia, trade 
mark, or number which the Code Authority shall assign to such 
member for liis exclusive use, and such number, mark, insignia, 
or trade mark shall appear on all stationery or forms (except those 
used for internal purposes), and on all watches and watch move- 
ments thereafter imported directly or indirectly by such member, 
as the Code Authority may prescribe. 

(b) The Code Authority shall assign to each member of this in- 
dustry so registered, a registration number for the exclusive use of 
such member. After one (1) month from the time of such assign- 
ment the member's registration number shall appear on all such sta- 
tionery or other forms (excei:)ting those used for internal purposes) 
of the member as the Code Authority may direct. Such registra- 
tion number shall also appear on ail watch movements imported by 
the member after six (6) months from the date of such assignment; 
but the Code Authority shall, subject to the approval of the Adminis- 
trator, have the right in specific cases to grant additional time (not 
exceeding ninety (90) days) for compliance with this provision, on 



34 

the preKontation of proper proof that a bona fide attempt has been 
made to comply within the six (G) month period, and that the mem- 
ber. thoii<^h acting diligently and in good faith, has not been able so 
to comply. 

(c) No mark, insignia, or number, nor any of the marks now 
required by law to remain upon imported movements shall be 
effaced, obscured, or chajiged in any manner after importation. 

Section 14. After the effective date of this Code no member of 
this industry shall order for import any complete watch or watch 
cases unless he complies with the marking provisions of the Watch 
Case Manufacturers' Code. 

Article VII — Cost 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- 
plain to the Code Authority that any quoted or charged price con- 
stitutes unfair competition as destructive price cutting, imperiling 
small enterprise or tending toward monopoly or the impairment of 
code wages and working conditions. The Code Authority shall 
within five (5) da3's afford an opportunity to the member quoting 
or charging 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 
the National Recovery Administration 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 con- 
sideration should be given to costs in the determination of pricing 
policies. 

(c) When an emergency exists as to any given product, sale below 
the stated minimum price of such product, in violation of Section 2 
hereof, is forbidden. 

EMERGENCY PROVISIONS 

Section 2. (a) If the Administrator, after investigationj shall at 
any time find both (1) that an emergency lias arisen within the 
industry adversely affecting small enterprises or wages or labor con- 
ditions, or tending toward monopoly, or other acute conditions which 
tend to defeat the purposes of the Act; and (2) that the determina- 
tion of the stat^id minimum price for a specified product within the 
industry for a limited period is necesstiry to mitigate the conditions 
constituting such emergency and to effectuate the purposes of the Act, 
the Code Authority may cause an impartial agency to investigate 
costs and to recommend to the Administrator a determination of the 
rtated minimum price of the product affected by the emergency and 
thereupon the Aciministr;itor may proceed to determine such stated 
minimum price. 



35 

(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 minmium price and 
any such sale shall be deemed destructive price cutting. 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. 

COST FINDING AND ACXX^UNTING 

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 sucli 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 Authority, any agent thereof, or any 
member of the industry t© suggest umform additions, percentages 
or differentials or other uniform items of cost which are designed 
to bring about arbitrary unifonnity of costs or prices, 

AjjTiciiE VIII — Trade Practice Rules 

Section 1. No member of the industry shall publish advertising 
(whether printed, radio, displaj'^, or of any other nature), which is 
misleading or inaccurate in any material particular, nor shall any 
member in any way 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. 

Section 2. All orders and invoices shall include a clear and com- 
plete statement of the terms and conditions upon which the trans- 
action was based and no member of the industry shall withhold 
from or insert in any quotation, order or invoice any statement that 
shall make it inaccurate in any material particular. 

Section 3. No member of the industry shall falsely brand or mark 
or pack any goods in any manner which is intended to or does de- 
ceive or mislead purchasers with respect to the brand, grade, quality, 
quantity, origin, size, substance, character, nature, finish, material 
content or preparation of such goods. 

Section 4. No member of the industry shall publish advertising or 
otherwise circulate statements or inferences which refer inaccurately 
in any material particular to any competitor's conduct, ability to 
perform contracts, credit standing, or otherwise, or to such competi- 
tor's goods, prices, values, credit terms, policies, or services. 

Section 5. No member of the industry shall publish or circtwAte 
unjustified or unwarranted threats of legal proceedings which t«nd 



36 

to or have the effect of harassing competitors or intimidating their 
customers. 

Section 6. No member of the industry shall secretly offer or make 
any payment or allowance of a rebate, refund, commission, credit, 
unearned discount, or allowance in excess of those hereinafter speci- 
fied, 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. 

Seciign 7. Xo merchandise sliall be shipped: 

(a) On consignment or memorandum, except upon approval by 
the Code Authority where peculiar conditions in the industry war- 
rant same and except that products may be so shipped to be shown 
to a specific customer of the consignee, or to permit selection by 
the consignee for purposes of stock, provided, however, that unless 
the consignee shall make report on such products within ten (10) 
days of receipt thereof, they shall be regularly invoiced on the net 
basis. 

(b) For advertising display purposes, except in accordance with 
such rules and regulations as may be prescribed by the Code 
Authority. 

Section 8. No merchandise shall be accepted for credit or ex- 
change unless defective, demonstrably below sample, or because re- 
ceived after the agreed delivery date, or in other material respects 
does not conform with the contract of sale, and then only if notice 
is received from the customer within two (2) weeks of date of 
receipt of said merchandise by the customer, stating his intentions 
and the reasons therefor. If lound to be defective or below sample, 
or in other material respects does not conform with the contract 
of sale, the member of the industry may issue to the customer a 
credit memorandum or refund monies paid. 

Section 9. No watch movements shall be repaired for less than 
the cost of such repairs, unless such repairs are necessitated by defec- 
tive material and/or workmanship and then only if such merchan- 
dise has been returned by tlie customer within sixty (60) days of 
receipt thereof from the member of the industry.^ 

Sect'ion 10, No member of the industry shall give, permit to be 
given, or directly or indirectly offer to give, anything of value for 
the purpose of influencing or rewarding the action of any employee, 
agent, or representative of anotlier in relation to the business or 
the employer of such emplo3'ee, the principal of such agent, or the 
represented party, without tlie knowledge of such emi)lo3'er, prin- 
cipal or party. This provision shall not be construed to prohibit 
free and general distribution of articles commonly used for adver- 
tising except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

Section 11. No member of the industry shall dispose of or permit 
the disposal of second-hand or rebuilt watches, or M^atches contain- 
ing second-hand or rebuilt movements, unless there shall be allixed 
to each such watch a tag stating that the watch is second-hand or 
rebuilt and requiring that the tag remain affixed until the watch is 
sold at retail. 

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



37 

Sectio?^ 12. No member of the industry shall give, permit to be 
given, or directly offer to give any free watch material or cabinets 
or display boxes, except to the extent that such watch material may 
be supplied without charge for purposes of replacing demonstrably 
defective material previously sold to the recipient. 

Section 13. No member of the industry shall distribute dealers' 
helps, such as mailing cards, mailing or counter folders, etc., at a 
price calculated to reimburse the member for less than fifty per cent 
(50%) of his out-of-pocket costs. This restriction shall not include 
window or outside displays, engraving, electrotype, plates, stereo- 
types, matrices, and the like. 

Section 14, No member of the industry shall attempt to induce 
the breach of an existing contract between a competitor and his 
employee or customer or source of supply; nor shall any such 
member interfere vv'ith or obstruct the performance of such con- 
tractual duties or services.' 

Section 15. No member of the industry shall enter into any agree- 
ment, understanding, combination or conspiracy to fix or maintain 
price terms, nor cause or attempt to cause any member of the indus- 
try to change hie price terms by the use of intimidation, coercion, 
or any other influence inconsistent with the maintenance of the free 
and open market. 

Section 16. All prices quoted and all sales made shall be f. o. b. 
point of shipment. 

Section 17. Oil all sales made on or after the effective date hereof, 
all members of the industry shall adhere strictly to the following 
conditions : 

(a) Terms shall be no more favorable than 2%, 10 days, e.o.m., 
60 days net: providing that on shipment made after the 25th day 
of the month, the member of the industry may date as of the first 
of the following month, and providing further, that settlements made 
under the terms of this subsection (a) shall be in cash. Such settle- 
ments not discounted under the terms of this subsection (a) may be 
entitled to anticipation at the rate of 6% per annum, if made before 
the expiration of the 60-day period. Interest at the rate of %% 
per month shall be charged on all open accounts running beyond 
such net settlement date. 

(b) Where members of the industry require long advance prepa- 
rations in completing their products, the following terms may be 
allowed to customers by members of the industry who are whole- 
saling products valued at $20.00 or more each wholesale and only 
with respect to articles so valued; amounts due for merchandise 
purchased during the six (6) months between January 1 and June 
30 (both inclusive) in any year, shall be payable on July 10 of that 
year; amounts due for merchandise purchased during the six (6) 
months between July 1 and December 31 (both inclusive) in any 
3'ear shall be payable on January 10 of the following year; provid- 
ing, however, that discounts allowed shall not exceed two (2) per 
cent, and providing further that, where a particular customer avails 
himself of the provisions of this paragraph (b), he shall not be 
granted longer terms on purchases of other merchandise within the 
same six (6) months' period. 

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



38 

(c) By agreement with the purchaser prior to shipment, any 
member of the industry may accept notes in settlement of the ac- 
count, provided, however, that such notes shall bo dated not later 
than the 10th of the month following^ such shipment and shall be 
in the hands of the member at or about the loth of the month and, 
provided furtlier, that such note settlement shall not exceed ten (10) 
monthly notes nor average over five (5) months. If force of cir- 
cumstances shall require extension of original notes at maturity, 
interest shall be charged at the rate of six per cent (0% ) per annum 
for such extension, which, however, shall be for not over ninety 
(90) days. 

Section 18. No cash discount shall be allowed on any note settle- 
ment, nor shall a non-interest bearing note be accepted in payment 
of a matm-ed obligation. Notes accepted after the net due elate with 
a tolerance of ten (10) days must bear interest from the net due date 
at a rate not less than six per cent (0%) per annum, or at the legal 
rate governing the contract if less than six per cent (C%) from the 
net due date, provided that unsecured and non-interest bearing 
notes may be accepted from insolvent or financially embarassed 
debtors. Notes so accepted shall be immediately reported to the 
Code Authority. 

Section 19. No member of the industry shall make allowances 
and/or donations to customers for advertising purposes or for any 
other purpose not approved by the Code Authority. 

Article IX — ISIodification 

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

Section 2. This Code, except as to provisions required by the Act, 
may bo modified or amended on the basis of experience or changes in 
circumstances, such modifications or amendments to be based upon 
application to the Administrator and such notice and hearing as 
he shall specify, and to become effective on approval of the President, 
unless otherwise provided. 

Article X — ^Monopolies, Etc. 

Section 1. No provision of this Code shall be so applied as to 
permit monopolies or monopolistic practices, or to eliminate, op- 
press, or discriminate against small enterprises. 

ARncLE XI — Effecttve Date 

Sii:!noN 1. This Code shall become effective upon tlie tenth (10th) 
day after its approval by the Achninistrator. 

Approved Code No. 510. 
Regiiitry No. 1208-07. 

o 



Approved Code No. 511 
CODE OF FAIR COMPETITION 

FOR THE 

CORRUGATED ROLLED-METAL CULVERT PIPE 

INDUSTRY 

As Approved on August 27, 1934 



OEDER 



Appro\^ng Code or Fair CoiipETixioN for the Corrugated Rolled- 
Metal Cul^t:rt Pipe 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 Corrugated Rolled-Metal Culvert Pipe 
Industry, and hearing having been duly held thereon and the an- 
nexed report on said Code, containing findings with respect thereto, 
having been made and directed to the President : 

NOAV, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise : do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act ; and do hereby order that said Code of Fair 
Competition be and it is hereby approved; provided, however, that 
within ninety days I may direct that there be a further hearing on 
such of the provisions of said Code as I may designate, and that any 
order which I may make after such hearing shall have the effect of 
a condition on the approval oi gaid Code ; provided, further, that the 
provisions of Article VII, Section (5)j so far as they prescribe a 
waiting period between the filing of revised price terms (i. e., actual 
receipt of such revised price terms by the duly designated a^ent or 
agents of the Code Authority) and the effective date thereof, oe and 
they hereby are stayed pending my further order. 

Hugh S. Johxson, 
Administrator for IndiostriaZ Recovery. 

Approval recommended: 
Geo. L. Berry, 

Division Adnvmlstrator. 

Washington, D. C, 

August 27, 1934. 

82944° 1044-133 34 (39) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the Code of Fair Competition for the 
Corrugated Rolled-Metal Culvert Pipe Industry, the hearing having 
been conducted in Washington on the 13th day of March, 1934, in 
accordance with the provisions of Title I of the National Industrial 
Recovery Act. This association claims to represent 76.6% of the 
Industry. 

HOURS AND WAGES 

This Code provides that employees shall not be permitted to work 
in excess of eight (8) hours in any twenty-four (24) hour period or 
forty (40) hours in any one (1) week nor more than six (6) days 
in any seven (7) day period. Exception is made for twelve (12) 
weeks in any twenty-six (26) week period during which time, how- 
ever, overtime shall not exceed eight (8) hours in any one (1) 
week. The limitation on hours does not apply to traveling salesmen, 
persons employed in managerial or executive capacities who earn not 
less than thirty-five dollars ($35.00) per week. Watchmen are not 
permitted to work in excess of fifty-six (56) hours in any week or in 
excess of six (6) days in any seven (7) day period. 

Five wage districts are provided in this Code, rancjin^ on a scale 
of from forty cents (40^) per hour to thirty cents (30^) per hour. 
The wage districts are in similarity to the wage districts in the Steel 
and Iron Industry Code. There is some interchange of employees 
between these two industries. This Industry is also in direct compe- 
tition with the Concrete Pipe Manufacturing Industry, Code ap- 
proved December 30th, 1933, and the Vitrified Clay Sewer Pipe 
Manufacturing Industry, Code approved November 27th^ 1933, both 
of which Codes provide a slightly lower wage rate than is set up in 
this Code. It seems quite clear that the Industry would be placed 
at a competitive disadvantage with the two competing Industries if 
anj other rate were provided. 

ECONOMIC EFFECTS OF THE CODE 

This Industry, like all industries engaged in construction endeav- 
ors, has suffered during the depression. The number of employees 
in the Industry in 1929 was 1.660. In 1933 the number of employees 
in the Industry was 1,596. However, the estimated number of em- 
ployees in 1934 is 1,791, representing an increase of 7.9% of tlie 1929 
level. It is believed that this increase is due to general conditions 
caused by codification of kindred industries. 

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 p^ro- 
ceedings in this matter : 

(40) 



41 

I find that : 

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

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

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

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

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

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

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

Hugh S. Johnson, 

AdTninistrator. 
August 27, 1934. 



CODE OF FAIR COMPETITION FOR THE CORRUGATED 
ROLLED-METAL CULVERT PIPE INDUSTRY 

AitncLB I — Purposes of tiie Code 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as the Code 
of Fair Competition for the Corrugated Rolled-Metal Culvert Pipe 
Industry, and shall be the standard of fair competition for such 
Industry and shall be binding upon every member thereof. 

Akticle II — Definitions 

Section 1. The term " Industry " or " the Industry " as used 
herein includes manufacturing and/or selling by manufacturers of 
corrugated rolled-metal culvert pipe of the full-round riveted typo, 
half-round flat-bottom type, nestable type, and/or corrugated rolled- 
metal arches, designed for use in connection with waterways or other 
drains, and/or modification of such products, and/or development 
of same, and/or of other such products of culvert-pipe fabricators 
or appurtenances or fittings produced by culvert-pipe fabricators for 
use in conjunction therewith, designed for use in connection with 
waterways or other drains, or all or any of them. 

Section 2. The term " member of the Industry " means and in- 
cludes anyone engaged in the Industry as above defined, either as an 
employer or on his own behalf. 

Section 3. The term "Association " as used herein means the " Na- 
tional Corrugated Rolled-Metal Culvert Pipe Association ". 

Section 4. The term " the Secretary " and " the Treasurer " means, 
respectively, the Secretary and the Treasurer of the Association at 
the time in office. 

Section 5. The term " employee " includes anyone, except a mem- 
ber of the Industry, engaged in the Industry in any capacity receiv- 
ing compensation for his services, irrespective of the nature or 
method of payment of such compensation. 

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

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 in the United 
States, or the District of Columbia, or the territory of Alaska. 

Article III — Hours 

Section 1. No cmploj-eo shall be permitted to work in excess of 
8 hours in any 24-hour period or 40 hours in any one week nor more 

(42) 



43 

than 6 days in any 7-day period, except as herein otherwise specif- 
ically provided. 

Section 2. The provisions of this Article limiting hours, shall 
not apply to traveling salesmen, or to persons employed in man- 
agerial or executive capacities, who earn not less than $35.00 per 
week. 

Section 3. Watclimen shall not be permitted to work in excess of 
66 hours in any week nor in excess of 6 days in any 7-day period. 

Section 4. The maximum houre fixed in Section (1) shall not 
apply for 12 weeks in any calendar year during which weeks, how- 
ever, overtime shall not exceed 8 hours in any one week. 

Section 5. No employer shall permit any employee to work for 
any time which, when totaled with that already performed for an- 
other employer or employers, in this or any other industry or trade, 
exceeds the maximum permitted herein. 

Section 6. Emploj'ers who personally perform manual work or 
are engaged on mechanical operations shall be subject, to the extent 
permitted by the Act, to the same maximum hours as are provided 
in this Code for employees. 

Article IV — Wages 

Section 1. (a) Wage Districts are hereby established as follows: 

District No. 1 comprises the counties of Westmoreland, Fayette, 
Greene, Washington, Allegheny, Beaver, Butler, Armstrong, Jeffer- 
son, Clearfield, Lawrence, Mercer and Venango in the State of Penn- 
sylvania, and the counties of Trumbull, Mahoning, Columbiana, 
Belmont, Jefferson, Ashtabula, Lake, Cuyahoga, Loraine, Seneca 
and Lucas in the State of Ohio, and the counties of Marshall, Ohio, 
Brock and Hancock in the State of West Virginia, and the cities 
along the Ohio River north of the City of Parkersburg, W.Va., 
and the counties of Monroe, Lewanee, Jackson, Wayne, Oakland, 
Macomb and Washtenaw in the state of Michigan, the Chicago 
Switching district and the counties of Lake and Du Page in the 
state of Illinois, the county of Lake in the State of Indiana and 
the counties of Kenosha, Kacine and Milwaukee in the state of 
Wisconsin. 

District No. 2 comprises the states of Maryland, Delaware and 
the District of Columbia. 

District No. 3 comprises the states of Arizona, New Mexico, Texas, 
Oklahoma, Arkansas, and Louisiana. 

District No. 4 comprises the states of Tennessee, Virginia, North 
Carolina, South Carolina, Georgia, Florida, Alabama, and Missis- 
sippi. 

District No. 5 comprises all that part of the United States which 
is not included in Districts No. 1, No. 2, No. 3, and No. 4 as herein 
described. 

(b) No employee shall be paid less than — 
40^ per hour in District No. 1 
35^ per hour in District No. 2 : 
820 per hour in District No. 3 
800 per hour in District No. 4; 
870 per hour in District No. 5 ; 
except as herein otherwise expressly provided. 



44 

(c) Wages above the minimum shall be promptly and equitably 
adjusted having in view long standing wage differentials. In mak- 
ing such adjustments the wage of no individual employe^j shall be re- 
duced. The Code Authority shall within 30 days after the effec- 
tive date of this Code ascertain from each member of the industry 
and report to the Administrator on such adjustments made by said 
members of the indushy pursuant to this provision. 

Sectiox 2. No office or clerical employee shall be paid at less than 
at the rate of $15.00 per week; provided, hoAvever, that each em- 
ployer may employ one office-boy or one office-girl for each 20 other 
office employees or additional :^raction thereof, and that each em- 
ployer may employ at least one office-boy or one office-girl; and, 
provided further, that the minimum pav for office-boys and/or office- 
girls shall be not less than 80% of the albove minimum. 

Section 3. The foregoing provisions of this Article establish a 
minimum rate of pay, re^arclless of whether an employee is com- 
pensated on a time rate, piece rate, or other basis. The rates of pay 
hereinbefore provided shall not be understood to be the maximum 
rates of pay for the respective distHcts. 

Section 4. A person whose earning capacity is limited because 
of age, physical or mental handicap, or other infirmity, may bo 
employed on light work at a wage below the minimum established 
by this Code, if the employer obtains from the 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 emploj^ed 
by him showing the wages paid to, and the maximum hours of work 
for such employee. 

Section 5. An employer shall make payment of all wages due in 
lawful currency or by negotiable check therefor, payable on demand. 
These wages shall be exempt from any payments for pensions, 
insurance, or sick benefits other than those voluntarily paid by the 
wage earners or required by state laws. Wages shall be paid at 
least twice each month ana salaries at least at the end ot every 
month. 

Article V — General Labor Pro\isions 

Section 1. No person under 18 years of age shall be employed in 
the Industry except as office-boys, office-girls and/or messengers. 
No person under 16 years of age shall be employed in the Industry 
in any capacity. In any state an employer shall be deemed to have 
complied with this provision if he shall have on file a certificate 
or permit, duly executed by the Authority in such state empowered 
to issue employment or age certificates, showing that the employee 
is of the required age. 

Section 2. Employees shall have the right to organize and bar- 
gain collectively through representatives oi 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. 



45 

Section 3. No employee and no one seeking eniployment 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 l. Employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of employ- 
ment, 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 
emploj^er regulating the age of employees, wages, hours of work, 
safety, or health, fire protection, or general working conditions 
than under this Code. 

Section 6. No emploj-er shall dismiss or demote any employee 
for making a complaint or giving evidence with respect to an alleged 
violation of this Code. 

Section T. Every employer shall make reasonable provision for 
the safety and health of his employees at the place and during the 
hours of their empio} ment. 

Standards for safety and health shall be submitted by the Code 
Authority to the Administrator for approval within three months 
after the effective date of this Code. 

Section 8. Within 10 days of the effective date each employer 
shall post, and thereafter maintain, in conspicuous places accessible 
to employees full copies of tliis Code and any amendments or modi- 
fications which may later be approved. Every member of the 
Industry shall comply with all rules and regulations relative to 
the posting of provisions of the Code which may from time to 
time be prescribed by the Administrator. 

Section 9. No employer shall reclassify employees or occupations 
performed for the purpose of evading the provisions of the Act or 
of this Code-, nor engage in any other subterfuge for such purposes. 

Article VI — Adjiixistraticn of the Code 

Section 1. A Code Authority is hereby established which shall 
consist of members of tlie Board of Directors of the National Cor- 
rugated Eolled-Metal Culvert Pipe Association at the time in office, 
provided that members of the Industry that are not members of such 
Association may elect an additional member of the Code Authority 
at any time within 60 days after the effective date of this Code. The 
additional member so elected shall assume his duties as a member of 
the Code Authoritj^ as soon as the Administrator notifies the Code 
Authority that he has determined that the additional member has 
been elected by a fair method of election and is truly representative 
of the non-members of the Association. If no such member of the 
Code Authority is elected within the prescribed 60-day period, the 
Administrator may appoint from among the members of the In- 
dustry who are not members of the Association, an additional mem- 
ber of the Code Authority who shall be truly representative of the 
non-members of the Association. 

Section 2. The Administrator, in his discretion, may appoint not 
more than three additional members without vote to represent the 
Administrator or such groups or interests as may be agreed upon, 

82944° 1014-li 



46 

without expense to the Industry. Notice of .all meetings to be held 
by the Code Authority shall be given to the Administrator and to 
such members of the Code Authority as are appointed by him. 

Skctiox 3. The administration ol theXode shall be under the di- 
rection of the Code Authority which shall have all powers and duties 
conferred upon it by the Code and such other powers and duties as 
may be granted by rules, regulations or orders of the Administrator. 

Skction 4. The Code Authority shall have power from time to 
time to appoint and remove, and to fix the compensation of, all offi- 
cers and employees and all such accountants, attorneys, and experts, 
as said Code Authority shall deem necessary and proper for the pur- 
pore of administering the Code; provided, however, that any indi- 
viduals or firms of accountants, attorneys, investigators, or experts 
acting at the instance or under the instructions of the Administrator 
shall be exempted from this provision and shall function without 
expense to th^^ Industry. All acts performed by the Code Authority 
under the provisions of this section are subject to the disapproval of 
the Administrator on review. 

Section 5. The Association shall (1st) impose no inequitable re- 
strictions on membership and (2nd) shall submit true copies of its 
articles of incorporation, constitution, by-laws, regulations, and any 
amendments when made thereto, together witli such other informa- 
tion as to membership, organization, and activities as the Adminis- 
trator may deem necessary to effectuate the purposes of the Act. 

Section 6. In order that the Code Authority sliall 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 methods of selection of the Code 
Authority. 

Section 7. The Code Authority shall be the general planning, co- 
ordinating, nnd administering agency of this Code and shall make 
such rules and regulations as may be necessaiy or proper for the 
administration of this Code and shall notify the Administrator of 
all rules and regulations adopted. 

Section 8. The Code Authority may from time to time appoint 
such committees as it mav deem necessary or proper in order to 
effectuate the purpose of the Code, and it may delegate to any such 
committee generally or in particular instances such of the powers and 
duties of the Code Authority under the Code as such Code Authority 
shall deorn necessary or proper in order to effectuate such purpose. 
Any member of any such committee may be a member of the Codr 
Authority, or an officer, a director, or an employee of a member of tlu' 
Industry or a person not having any official connection with any 
member of the Industry or with the Code Authority, as the Code 
Authority shall deem proper. No provision of this section shall 
relieve the members of the Code Authority from any of their respon- 
sibilities under the Code. 

Section 9. In order to assist in making effective the reports from 
the Industry and in eliminating unfair competition, the Code Author- 
ity may appoint a committee so constituted as to give due consumer 
and governmental representation, to make a study, with a view to 



47 

the establishment of classifications and standards of dimensions and 
quality of products of the Industry, wherever such standards are 
deemed feasible. The findings and recommendations of this com- 
mittee shall, within three months after appointment, be submitted to 
the Administrator, and after such hearings as he may designate, and 
upon approval by him, shall be made a part of this Code and be 
binding upon every member. 

Section 10. The Code Authority may appoint a trade practice 
committee to meet with the trade practice committee appointed 
under such other codes as may be related to this Industry for the pur- 
pose of formulating fair trade practices to govern the relationships 
between production and distribution employers under this Code and 
under such others to the end that such fair trade practices may be 
proposed to the Administrator as amendments to this Code, and such 
other codes. 

Section 11. The Code Authority may upon complaint of inter- 
ested parties or upon its own initiative make such inquiry of the 
observance of this Code as may be necessary subject to such rules 
and regulations as the Administrator may prescribe. 

Section 12. Each member of the Industry shall make such sworn 
or unsworn reports to the Code Authority or to the Administrator 
as are required for the administration of the Code. In addition to 
information required to be submitted to the Code Authority, mem- 
bers of the Industry shall furnish such statistical information as the 
Administrator maj'' deem ne'cessary for the purposes recited in Sec- 
tion 3 (a) of the Act to such Federal and State agencies as he may 
designate; provided that nothing in this Code shall relieve any mem- 
ber of the Industry of any existing obligations to furnish reports to 
any Government agency. No individual report shall be disclosed 
to any other member of the Industry or any other party except to 
such other Governmental agencies as may be directed by the Admin- 
istrator. 

Section 13. It being found necessary in order to support the ad- 
ministration of this Code and to maintain the standards of fair com- 
petition established hereunder and to effectuate the policy of the 
Act, the Code i\.uthority 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 ai:)proval, subject to 
such notice and opportunity to be heard as he maj^ deem necessary 

An itemized budget of its estimated expenses for the foregoing 
purposes, and 

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. 

Section 14. (a) Each member of the industry shall pay his or its 
equitable contribution to the expenses of the maintenance of the 



48 

Code Authority, cletcrmined as hereinabove provided, and subject to 
rules and rofiulations ^:)ertaining 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 Author- 
ity or to receive the benefits of any of its voluntary activities or to 
make use of any emblem or insignia of the National Recovery 
Administration. 

(b) The Code Authority shall neither incur nor pay any obli- 
gation 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 estimates except those which 
the Administrator shall nave so approved. 

Section 15. The expenses of the administration of the Code as 
established in the budget to be established by the Code Authority 
subject to the approval of the Administrator, shall be assessed 
against each member of the Industry in proportion to the aggregate 
amount in dollars of the invoiced value of Industry products de- 
livered by such member for consumption within the United States, 
except Puerto Rico, and Hawaii, during the preceding calendar 
year, in units of $25,000.00; provided, however, that fractions of 
such units shall be disregarded except in cases where a member or 
members of the Industry have so delivered less than $25,000.00 
aggregate amount in dollars of invoiced value of Industry products 
during the preceding calendar year, in which case, they shall be 
assessed in direct proportion to the invoiced value of Industry prod- 
ucts delivered within the United States, except Puerto Rico and 
Hawaii, in such preceding calendar j^ear. 

Section 16. Any notice, demand, or request, required or permitted 
to be made upon any member of the Industry shall be sufficiently 
given if mailed postage prepaid by registered mail to him at his 
last known address. 

Section 17. Nothing contained in this Code shall constitute mem- 
bers of the Code Authority partners for anv purpose. Nor shall any 
member of the Code Authority be liable in any manner to anyone 
for any act of an}^ other member, officer, agent, or employee oi the 
Code Authority. Nor shall any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties here- 
under be liable to anyone for any act or omission to act under this 
Code except for his own wilful malfeasance or non-feasance. 

Section 18. If the Administrator shall determine that any act 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 inves- 
tigation 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) da3's' notice to him of intention to 
proceed with such action in its original or modified form. 



49 

Aeticle VII — ^Peices and Terms of Payment 

SECTnoN 1. Each Member of the Industry shall file with the Sec- 
retary of the Association (provided such Secretary is in fact a con- 
fidential and disinterested agent) , or any other confidential and dis- 
interested agent or agents of the Code Authority, or if none, then 
with an agent or agents designated by the Administrator for "the 
period until the Code Authority shall have appointed such agent or 
agents ; certified lists of all his prices, discounts, rebates, allowances, 
and all other terms and/or conditions of sale, hereinafter in this 
Article referred to as " price terms ", for the State or States in 
which he offers Industry products for sale, except where prices for 
export or for territories or insular possessions or the United States 
are involved. Such lists shall completely and accurately conform 
to and represent the individual pricing practices of said member 
of the Industry. 

Section 2. Such lists shall contain the price terms for all such 
standard products of the Industiy as are sold or offered for sale in 
such State or States by said member, and for such non-standard 
products of said Memoer as shall be designated by the Code 
Authority. 

Section d. Each price list so filed by each member shall state the 
brand of metal in all products and/or items covered by such price 
list, and shall define; in terms of analysis of base metal, gauge, 
weight, and type of coating or coatings : all grades of all products 
and/or items which it proposes to offer for sale. 

Section 4. Each such list shall show all discounts allowable if 
any to all purchasers. Each Member of the Industry may classify, 
but without limitation, purchasers according to the following list: 

(a^ State Highway Department, 
'b) Contractors. 

c) Railroads. 

d) United States Government Departments. 

e^ Cities and Towns. 

*f) Townships. 

,g) Counties. 

^h) General Consumers. \ 

Section 5. Said price terms shall, in the first instance be filed 

witliin ten (10) days after the effective date of this Code. Such 
price terms as originally filed in the first instance shall become effec- 
tive immediately upon receipt thereof by said agent. Revised price 
terms may be filed from time to time thereafter with the said agent 
or agents by any member of the Industry, provided, however, that 
such revisions shall be effective 10 days after the receipt of such filed 
lists; and provided further, that a^ny Member of the Industry may 
file revised price terms to meet price terms of any other member of 
the Industry, established by the above method as of the effective date 
thereof.^ 

Section 6. Immediately upon receipt of such filed price terms 
and revised price terms, said agent shall promptly, by first class mail 
or by faster methods, notify said member of the Industry of the time 
of receipt and the effective date of such price terms. 



^ See paragraph 2 of order approving this Code. 



50 

Section 7. Such lists and revisions, together with the effective 
time thereof, shall upon receipt by said agent or agents be immedi- 
ately and simultaneously distributed to all members of the Industry 
■who shall have previously signilied their desire to receive such price 
terms for certain States, and to all of their customers who liave 
applied to said agency therefor and have offered to defray the cost 
actually incurred by the Code Authority in the preparation and dis- 
tribution thereof, and shall be available for inspection by any cus- 
tomers at the office of said agent. 

Section 8. Said lists or revisions or any part thereof shall not be 
made available to any person until released to all members of the 
Industiy and their customers, as aforesaid. The Code Authority 
shall maintain a permanent file of all price terms filed as herein 
provided, and shall not destroy any part of such records except upon 
written consent of the Administrator. Upon request the Code Au- 
thority shall furnish to the Administrator or any duly designated 
agent of the Administrator copies of any such lists or revisions of 
price terms. 

Section 9. No member of the Industry shall sell or offer to sell 
directly or indirectly through an affiliated company or otherwise by 
any means whatever any products/services of tne Industry, for 
which price terms have been filed pursuant to the provisions of this 
Article, except in accordance with such price terms. 

Section 10. No member of the Industry shall enter into any agree- 
ment, understanding, combination or conspiracy with any other 
member of the Industry to fix or maintain price terms, nor cause or 
attempt to cause anv member of the Industry to change his price 
terms by the use oi 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 11. Any member of the Industry may enter into an agree- 
ment with a dealer under the terms of which such dealer may agree 
that he will sell the products of the Industry purchased from such 
member of the Industry at prices which are not less than the price 
terms filed with the Code Authority by such member of the Indus- 
try and in effect at the time the sale is made by such dealer; pro- 
( vided that nothing in any such agreement shall prevent the free 
disposal by such dealer or any distress or obsolete products which 
he may have on hand unless such member shall agree to repurchase 
the same. 

Section 12. The standards of fair competition for the industry 
with reference to pricing practices are declared to be as follows : 

(a) AVilfully destructive price cutting is an unfair method of 
competition and is forbidden. Any member of the industry o« of 
any other industry or the customers of either ma}'^ at any time com- 
plain to the Code Authority that any filed price constitutes unfair 
competition as destructive price cutting, imperiling small enterprise 
or tending toward monopoly or the impairment of code wages and 
working conditions. The Code Authority shall within 5 days afford 
an opportunity to the member filing the price to answer such com- 
plaint and shall within 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 J^esearch and Planning Division 



51 

of NEA 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 
Bound cost estimating methods should be used and that consideration 
should be given to costs in the determination of pricing i^olicies. 

(c) When an emergency exists as to any given product, sale 
below the stated minimum price of such product, in violation of 
Section 13 hereof, is forbidden. 

Section 13. Emergency Provisions: 

(a) If the Administrator, after investigation shall at any time 
find both (1) that an emergency has arisen witliin the industry in 
any trade area or areas 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- 
ned product witlnn the industry in any trade area or areas for a 
limited period is necessary to mitigate the conditions constituting 
such emergency and to effectuate the purposes of the Act, the Code 
Authority may cause an impartial agency to investigate costs in 
any trade area or areas 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 minimmn price. 

(b) "When the Administrator shall have determined such stated 
minimmn price for a specified product for a stated period in any 
trade area or areas, 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 within such trade area 
or areas at a net realized price below said stated minimum price and 
any such sale shall be deemed destructive price cutting. From 
time to time, the Code Authority may recommend review or recon- 
sideration or the Administrator may cause any determinations here- 
under to be reviewed or reconsidered and appropriate action taken. 

Article VIII — Unfair Practices 

For all purposes of the Code the following described acts shall 
constitute unfair practices 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 indirectly, through any 
officer, employee, agent, or representative, use or employ any of 
such unfair pra^ctices shall be guilty of a violation of the Code : 

A. No member of the Industry shall give, permit to be given, 
or directly offer to give, anything of value for the purpose of in- 
fluencing the action of any employee, agent, or representative of 
another in relation to the business of the employer of such employee, 
the principal of such agent or the represented party, without the 
knowledge of such employer, principal or party. This provision 
shall not be construed to prohibit free and general distribution 
of articles commonly used for advertising, except so far as such 



52 

articles are actually used for commercial bribery as hereinabove 
defined. 

B. Imitating or simulating any trade mark or brand used by any 
other member of the Industry for the purpose of deceiving or mis- 
leading a purchaser or potential purchaser as to the product. 

C. The furnishing of articles more or less expensive, of better 
or inferior quality, or of larger or smaller size than specified, with- 
out making the proper adjustments in the price and clearly indicat- 
ing the nature of the substitution at the tune the order is accepted 
by the seller. Further, the furnishing of connecting bands, acces- 
sories, or fittings without proper compensation therefor shall like- 
wise be considered an unfair practice. 

I). No member of the Industry shall secretly directly or indirectly 
make or offer to make any payment, allowance, rebate, refund, com- 
mission, credit, unearned discount, or excess allowance in the form 
of mone}^ 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. 

E. Disseminating, publishing, or circulating any false or mis- 
leading information relative to any product or price for any prod- 
uct of any member of the Industry, or the credit standing or ability 
of any member thereof to perform any work, or manufacture or 
produce any product, or to the conditions of employment among the 
employees of any member thereof. 

F. Inducing or attemptin^^ to induce any party to a sales contract 
with any member of the Industry to violate such contract. 

G. Aiding or abetting any person, firm, or corporation in any 
violation of the Code. 

H. Making or giving to any purchaser of any product any ^ar- 
anty or protection in any form against decline in the market price of 
such product. 

I. Issuing any invoice containing erroneous or misleading informa- 
tion or issuing any invoice containing any terms which by subter- 
fuge or otherwise allows the extension ot a discount period other 
than is intended in the filed prices of a member of the Industry, at 
the time in effect. 

J. Making any sale or contract of sale of any product under any 
description which does not fully describe such product in. terms cus- 
tomarily used in the Industry. 

K. Rendering to any purchaser of any product in or in connection 
with the sale of such product any service, such as distribution by 
truck at various points on a project or other similar service or install- 
ing or erecting the product or any otlier extra or special service, 
without charging such .purchaser the complete costs in connection 
with the rendering of such serv'ice. 

L. The manufacture for sale of galvanized culvert pipe from 
seconds or waster sheets which are not plainly identified as such, or 
the sale of culvert pipe containing sheets which have been damaged 
in fabricating without plainly identifying as second-grade pipe. 
The sale of galvanized culvert pipe as primes which does not bear 
a brand and the name of the sheet producer and which does not show 
the gauge of sheets and weight of spelter coatings. 



53 

M. The sale for culvert purposes of galvanized culvert pipe fabri- 
cated from sheets which have a spelter coating of a lower weight 
than the standard 2-ounce spelter coating required by " Tentative 
Standard Specification for Corrugated Metal Pipe Culverts " adopted 
by the American Association of State Highway OiScials, 1933, except 
when such culvert pipe is branded as " seconds ". 

N. The publishing or circulating of threats or suits for infringe- 
ment of patents or trade marks or of any other legal proceedings not 
in good faith, with the tendency or eifect of harassing competitors 
or intimidating their customers. 

O. It shall be an unfair practice for any member of the Industry 
or for any employee or agency of any member of the Industry to 
make a lump-sum quotation on or lump-sum sale of any bill of ma- 
terial including any products of the Industry if such bill of material 
includes any products or services other than the products or services 
of the Industry. 

P. Making or offering to make any sale of any products of the 
Industry in violation of the applicable provisions of Article VII of 
this Code. 

Article IX — Modificatign 

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

Section 2. This Code, except as to provision required by the Act, 
may be modified on the basis of experience or changes in circum- 
stance, upon the recommendation of the Code Authority to the 
Administrator and upon such notice and hearing as he shall specify, 
and to become effective on approval by 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 

'\^,niereas 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 on the 11th day after its approval 
by the President. 

Approved Code No. 511. 
Registry No. 1135-32. 

O 



Approved Code No. 512 
CODE OF FAIR COMPETITION 

FOR THE 

GRASS AND FIBRE RUG MANUFACTURING 
INDUSTRY 

As Approved on August 27, 1934 



ORDER 



Approat:ng Code of Fair Competition for the Grass and Fibre 
Rug Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Grass and Fibre Rug Manufacturing 
Industry, and hearing having been duly held thereon and the 
annexed report on said Code, containing findings with respect 
thereto, having been made and directed to the President: 

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

Hugh S. Johnson, 
Administrator for Industrial Recoveiy. 

Approval recommended : 
Joseph F. Battley, 

Acting Division Administrator. 

Washington, D.C, 

August 27, 1934. 

82938° 1044-126 34 (55) 



REPORT TO TIffi PRESIDENT 

The President. 

The White Hoiose. 

Sir: This is a report on the approved Code of Fair Competition 
for the Grass and Fibre Rug Manufacturing Industry, the hearing 
on which was conducted in Washington on December 15, 1933, in 
accordance witli the provisions of the National Industrial Recovery 
Act. 

The minimum wages provided in. this code are thirty-two and one- 
half cents (321/^0) per hour for males and females, with the provision 
that when females perform substantially the same work as males they 
are to receivfe the same rate of pay. No learner shall be paid less 
thaii eighty percent (80% ) of the lowest wage for the type of work 
lipon which lie is engaged, and in no case less than eighty percent 
(80%) of the codal minimum. No learner shall be paid less than 
the minimiim wage for a period of more than six (6) weeks, and 
at no time shall the percentage of learners exceed five percent (5%) 
of the total number of employees. 

The maxiinum hours provided in this code are forty (40) hours 
per w«ek or eight (8) hours per day^ with the provision that during 
any one period of three (3) months in any calendar year, employees 
may be permitted to work not more than forty-eight (48) hours per 
week, and for ail time in excess of eight (8) hours per day and/or 
forty (40) hours per week employees shall be paid on a basis of one 
and one-thii'd their normal rate of compensation. 

S'o person under sixteen (16) years of age shall be employed in 
this industry, nor anyone under eighteen (18) years of age at opera- 
tions or occupations which are hazardous in nature or detrimental 
to health. 

No homework shall be permitted in this industiy, except in accord- 
ance with Executive Order of May 15, 1934. 

This industry was in former yeai's quite extensive, but due to in- 
creasing importations of grass and fibre rugs from Japan it has 
diminished until there are now only nine (9) concerns in the industry. 
This industry comprises the manufacture of fabric processing and 
finishing into rugs. They are sold in competition with otJier floor 
coverings, and are designed i^rimarily for smmuer use. 

This industry has an aggregate invested c^ipital of $0,107,000, 
and the aggi^egate annual sales is $1,457,000. The production capac- 
ity is $6,545,000. 

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

I find that: 

(a) Said code is Avell designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 

(50) 



57 

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 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 
avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by othenvise rehabilitating industry. 

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

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

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

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

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

For these reasons this code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator, 
August 27, 1934. 



CODE OF FAIR COMPETITION FOR THE GRASS AND 
FIBRE RUG MANUFACTURING INDUSTRY 

Ahticle I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is established as a Code of Fair Competi- 
tion for the Grass and Fibre Rug Manufacturing Industry, and its 
provisions shall be the standard of fair competition for such indus- 
try and binding upon every member thereof. 

Ahticle II — Definitions 

Section 1. The term " Grass and Fibre Rug Manufacturing In- 
dusti-y " as used herein includes the manufacture for sale of Grass 
and/or Fibre woven fabrics for rugs and mattings, whether as a 
final process or as a part of a larger or further process. 

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

Section. 3. The t«i'm " employee " as used herein includes any and 
all persons engaged in the industry, however compensated, except 
a member of the industry. 

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

Section 5. The term " regular merchandise as used herein means 
all merchandise other than mill seconds, drops, samples and 
remnants. 

Section C. The term " drops " as used herein means discontinued 
patterns or weaves of rugs already manufactured and in stock; 
and " seconds " as used herein signifies merchandise which contains 
defects. 

■ Section 7. The terms "Act " and "Administrator " as used herein 
mean respectively Title I of the National Industrial Recovery Act 
and tlie Administrator for Industrial Recovery. 

Article III — Hours 

Section 1. Except as hereinafter provided, no employee shall be 
permitted to work in excess of 40 hours in any one week or 8 hours 
in any one day, provided, however, that during any one period of 3 
months in any calendar year, employees may do permitted to work 
not more than 48 hours per week, and for time in excess of 8 hours 
per day and/or 40 houre per week employees shall be paid on a 
basis of one and one-third their normal rate of compensation. 

(a) The maximum hours established herein shall not apply to 
employees engaged in work involving protection of life and/or prop- 
erty or emergency maintenance or emergency repair work, but m 

(58) 



59 

any such case at least one and one-third the normal rate of com- 
pensation shall be paid for all time worked in excess of 8 hours in 
any one day and/or 40 hours in any one week. 

(b) The maximum hours established herein shall not apply to 
outside salesmen nor to employees engaged in a managerial, super- 
visory or executive capacity who earn regularly $35.00 per week 
or more. 

(c^ The maximum hours established herein shall not apply to 
repair shop crews, electricians, engineers, shipping crews, who shall 
be permitted to work not more than 44 hours per week, except that 
during one period of 3 months in any calendar year they shall be 
permitted to work not more than 52 hours per week,, and for time 
in excess of 8 hours per day and/or 40 hours per week they shall 
be paid on the basis one and one-third their normal rate of com- 
pensation. 

(d) The maximum hours established herein shall not apply to 
office or clerical workers who are permitted to work not more than 
an average of 40 hours per week in each calendar quarterly period, 
provided, however, that no such employee shall be required or per- 
mitted to work more than 48 hours in any one week or 8 hours in 
any one day.- 

(e) The maximum hours established herein shall not apply to 
watchmen and firemen who shall not be permitted to work more 
than 56 hours in any one week. 

Section 2. No employer shall knowingly permit any employee 
to work for any time which, when added to the time spent at work 
for another employer or employers exceeds the maximum permitted 
herein. 

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

Article IV — Wages 

Section 1. No employee shall be paid in any pay period less than 
at the rate of 321/20 per hour, except as otherwise herein provided. 

(a) Female employees performing substantially the same work 
as male employees shall receive the same rate of pay as male em- 
ployees, and when they displace male employees they shall receive 
the same rates of pay as the men they displace. 

(b) A person whose earning capacity is limited because of age, 
physical or mental handicap, may be employed on light or unskilled 
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 cerijificate 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 shjill file monthly with 
the Code Authority a list of all such persons employed by him, 
showing the wages paid to, and the maximum hours of work for 
such employee. 

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



60 

Sectiox S. Employees shall in no event have their hourly rates 
reduced; and equitable adjustments of all wages shall be made 
within GO days from the approval of this Code, and the Code Au- 
thority shall submit for the approval of the Administrator a pro- 
posal for such adjustment in wages. Upon approval by the Ad- 
ministrator, after such hearing as he may prescribe, such proposal 
shall become binding as a part of this Code. 

No learner (any productive employee not previously employed in 
the industry) shall be paid less than 80% of the lowest wage for the 
type of work upon which he is engaged, and in no case less than 80 
per cent of the Codal minimum. No learner shall be paid less than 
the minimum wage for a period of more than 6 weeks, and at no 
time shall the percentage of learners exceed 5 per cent of the total 
number of employees. 

Article V — General, Labor Provisions 

Section 1. Child Labor. — No person under 16 years of age shall 
be employed in this industry; nor anyone imder 18 years of age at 
operations or occupations which are hazardous in nature w detri- 
mental to health. The Code Authority shall submit to the Admin- 
istrator a list of such operations or occupations. In anj'' State an 
employer shall be deemed to have complied with this provision as 
to age if he shall have on file a certificate or permit duly signed by 
the authority in such State empowered to issue employment or age 
certificate or permits showing that the employee is of the required 
age. 

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

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

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

Section 3. Evasion Through Svhterfuge. — No employer shall re- 
classify employees or duties of occupations performed or enga^'c in 
any other subterfuge so as to defeat the purposes or provisions oi the 
Act or of this Code. 

Section 4. Standards for Safety and Health. — Every employer 
shall provide for the safety and health of employees during the hours 
and at the places of their employment. Standards for safety and 
health shall bo submitted by the Code Authority to the Admin- 
istrator within six months after the effective date of the Code. 

Section 5. State Laws. — No provision in this Code shall super- 
sede any State or Federal law which imposes on employers more 



61 

stringent requirements as to age of employees, wages, hours of work, 
or as to safety, health, sanitary or general working conditions, or 
insurance, or fire protection, than are imposed by this Code. 

Section 6. Posting Labor Provisions. — All employers shall post 
and keep posted copies of the labor provisions for this Code in con- 
spicuous 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 7. Home Work. — No member of the industry shall em- 
ploy any person or persons to manufacture, in whole or in part, any 
product of the industi»j^ in the home, except in accordance with 
Executive Order, Isisiy 15, 1934. 

Section 8. Reporting of Violations. — No employee shall be dis- 
missed by reason of making a complaint or giving evidence with re- 
spect to an alleged violation of this Code, or any other Code. 

AirncLE VI — ^Administration 

OKGANIZATION AND CONSTITUTION 

Section 1. A Code Authority is hereby established to cooperate 
with the Administrator in the administration of this Code and shall 
consist of 5 members to be chosen by the industry, through a fair 
method of selection to be approved by the Administrator. 

Section 2. In addition to membership as above provided, there 
m.ay be 3 members, without vote, to be known as Administration 
members, to be appointed by the Administrator to serve without 
compensation from the industry 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 
Authority shall impose no inequitable restriction on membership, and 
shall submit to the Administrator for his approval true copies of its 
articles of association, by-laws, regulations and any amendments 
when made thereto, together with such other information as to mem- 
berships, organization and activities as the Administrator may deem 
necessary to effectuate the purposes of the Act. 

Section 4. In order that the Code Authority shall at all times be 
truly representative of the industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe such 
hearings as he may deem proper ; and 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 composition and 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, oiRcer, agent or employee 
of the Code Authority. Nor shall any member of the Code Author- 
ity, exercising reasonable diligence in the conduct of his duties here- 
under, be liable to anyone for any action or omission to act under 
this Code, except for his own wilful malfeasance or nonfeasance. 



62 

Section 6. If the Administrator shall at any time determine that 
any action of the Code Authority or any agency thereof may be 
unfair or unjust or contrary to the public interest, the Administra- 
tor may require that such action be suspended to afford an oppor- 
tunity for investigation of the meiits 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. 

POWERS AND DUTIES OF THE CODE AUTHORITY 

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

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

(b) To adopt by-laws and rules and regulations for its procedure. 

(c) To obtain from members of the industry such information and 
reports as are required for the administration of the Code. In 
addition to information required to be submitted to the Code Author- 
ity, members of the industry shall furnish such statistical information 
as the Administrator may deem necessary for the purposes recited 
in Section 3 (a) of the Act to such Federal and State agencies as he 
may designate; proAdded 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 report shall be 
disclosed to any other member of the industry or any other party 
except to such other Governmental agencies as may be directed by 
the Administrator. 

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

Section 8. It being found necessary to support the administration 
of this Code in order to effectuate the policy of the Act and to main- 
tain the standards of fair competition established hereunder, the Code 
Authority is authorized : 

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

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon AAUiich the funds necessary 
to support such budget shall bo contributed by members of the In- 
dustry entitled to the benefits accruing from the maintenance of such 
standards, and the administration tnereof. 



63 

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

(d) Each member of the Industry shall be liable for his or its 
equitable assessment to the expenses 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 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 make use of any emblem or insignia of the 
National Recovery Administration. 

(f) 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 
which the Administrator shall have so approved. 

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

(h) To appoint a Trade Practice Committee which shall meet 
with the Trade Practice Committees appointed under such other 
podes as may be related to the industry for the purpose of formulat- 
ing fair trade practices to govern the relationships between employ- 
ers under this Code and under such other Codes to the end that such 
fair trade practices may be proposed to the Administrator as amend- 
ments to this Code and such other Codes. 

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

(i) The Code Authority shall make a study of conditions in the 
industry to determine the feasibility of the adoption of a shorter 
working week and shall, within 6 months after the effective date of 
this Code, make a report to the Administrator of its findings. The 
Code Authority shall also submit to the Administrator, within 6 
months after the effective date of this Code, a plan for the stabiliza- 
tion and regularization of employment. 

Article VII — Open Price Filing 

Section 1. Each member of the industry shall file with a confi- 
dential and disinterested agent of the Code Authority or, if none, 
then with such an agent designated by the Administrator, identified 
lists of all of his prices, discounts, rebates, allowances, and all other 
terms or conditions of sale, hereinafter in this Article referred to as 
" price terms ", which lists shall completely and accurately conform 
to and represent the individual pricing practices of said member. 



64 

Such lists shall contain the price terms for all such standard prod- 
ucts of the industry as are sold or offered for sale by said member 
and for such non-standard products of said member as shall be 
designated by the Code Authority. Said price terms shall in the 
first instance be filed within 30 days after the date of approval of 
this provision. Price terms and revised price terras shall become 
effective immediately upon receipt thereof by said agent. Imme- 
diately 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 dis- 
tributed to all members of the industry and to all of their customers 
who have applied therefor and have offered to defray the cost actu- 
ally incurred by the Code Authority in the preparation and distribu- 
tion thereof and be available for inspection by any of their custom- 
ers at the office of such agent. Said lists or revisions or any part 
thereof shall not be made available to any person until releasea to 
all members of the industry and their customers, as aforesaid, pro- 
vided, that prices filed in the first instance shall not be released 
until the expiration of the aforesaid 30 day period after the approval 
of this Code. The Code Authority shall maintain a permanent file 
of all price terms filed as herein provided, and shall not destroy 
any part of such records except upon w^ritten consent of the Admin- 
istrator. Upon request the Code Authority shall furnish to the 
Administrator or any duly designated agent of the Administrator 
copies of any such lists or revisions of pric€ terms. 

Section 2. When any member of the industry has filed any revi- 
sion, such member shall not file a higher price within forty-eight 
(48) hours. 

Section 3. No member of the industry shall sell or offer to sell 
any products and/or services of the industry, 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 industry shall enter into any agree- 
ment, understanding, combination or conspiracy to fix or maintain 
price terms, nor cause or attempt to cause any member of the indus- 
try to change his price terms by the use of intimidation, coercion, 
or any other influence inconsistent with the maintenance of the 
free and open market which it is the purpose of this Article to 
create. 

Article VIII — Costs and Price Cutting 

Section 1. The standards of fair competition for the industry 
with reference to pricing practices are declared to be as follows : 

(a) Wilfully destructive price cutting is an unfair method of com- 
petition and is forbidden. Any member of the industry or of any 
other industry or the customers of either may at an}' time complain 
to the Code Authority that any filed price constitutes unfair compe- 
tition as destructive price cutting, imperiling small enterprise or 
tending toward monopoly or the impairment of code wages and work- 
ing conditions. The Code Authority shall within 5 days afford an 
opportunity to the member filing the price to answer such complaint 
and shall within 14 days make a ruling or adjustment thereon. If 



65 

such ruling is not concurred in b\^ either party to the complaint, all 
papers shall be referred to the Kesearch 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 2 
hereof, is forbidden. 

Section 2. Etitergency provisicnis. — (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 speci- 
fied product within the industry for a limited period is necessary to 
mitigate the conditions constituting such emergency and to effectu- 
ate th« purposes of the Act, the Code Authority may cause an im- 
partial agency to investigate costs and to recommend to the Adminis- 
trator a determination of the stated minimum price of the product 
affected by the emergency and thereupon the Administrator may 
proceed to determine such stated minimum price. 

(b) "\^Tien 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 
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 reconsideration or the 
Administrator may cause any determinations hereunder to be re- 
viewed or reconsidered and appropriate action taken. 

Section 3, Cost Finding. — The Code Authority shall cause to be 
formulated methods of cost finding and accounting capable of use 
by all members of the industry, and shall submit such methods to 
the Administrator for review. If approved by the Administrator, 
full information concerning such methods shall be made available 
to all members of the industry. Thereafter, ^ch member of the 
industry shall utilize such methods to the extent found practicable. 
Nothing herein contained shall be construed to permit the Code 
Authority, any agent thereof, or any member of the industry to 
suggest uniform conditions, percentages or differentials or other uni- 
form items of cost which are designed to bring about arbitrary imi- 
f ormity of costs or prices. 

Article IX — ^Trade Practice Rules 

Section 1. Tervis. — (a) No member of the Industry shall sell mer- 
chandise on any but the following terms of payment : 

1. Cash, 4% 10 days, 60 days extra or 4% 60 days from end of 
month. 



66 

2. Anticipation to be allowed at the rat^* of 6% per annum. 

(b) No member of the industry shall allow a discount of more 
than 15% extra on " drops " or 20% on " seconds " over the maxi- 
mum di^scount allowed on regular merchandise, except by special 
permissron of the Code Authority with the approval of the Admin- 
istrator. 

Section 2. Bribes. — No member of the industry shall give, permit 
to be given, or directly offer to give, anything of value tor the pur- 
pose of influencing or rewarding the action of any employee, agent 
or representative of another in relation to the business of the em- 
ployer of such employee, 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 cf articles commonly used for advertising except 
so far as such articles are actually used for commercial bribery as 
hereinabove defined. 

Section 3. Secret Rehates. — No member of the industry shall 
secretly offer to make any payment or allowance of a rebate, refund, 
commission, credit, unearned discount or excess allowance, whether 
in the form of money or otherwise, nor shall a member of the indus- 
try secretly offer or extend to any customer any special service or 
privilege not ext<?nded to all customers of the same class, for the 
purpose of influencing a sale. 

Section 4. Consignment. — No member of the industry shall ship 
goods on consignment except with the approval of the Code Author- 
ity where conditions in the industry warrant such practice. 

Section 5. Rctuj^ns. — No member of the industry shall accept the 
return of merchandise unless justified. 

Section 6. Marking " Seconds ". — No member of the industry shall 
fail to mark on " seconds ", both on ticket and bales, the words " Mill 
Seconds." 

Section 7. Drop Shijytnents. — No member of the industry shall 
make drop shipments of regular merchandise to customer direct on 
order of jobber unless jobber has placed an initial order for not less 
than $1,000 net. 

Seciton 8. No member of the Industry shall brand or mark or 
pack any goods in any manner which is intended to or does mislead 
f)urchasers with respect to the brand, grade, quality, quantity, origin, 
size, substance, character, nature, finish, material content, or prepa- 
ration of such goods. 

Section 9. The piracy of styles or designs by any member of the 
Industry is hereby declared to be unfair competition and a violation 
of this Code. 

Article X — Sales of " Drops " 

Section 1. No member of the Industry shall sell as " drops " or 
" seconds " in any year an amount in excess of 8% of the annual 
gross sales of regidar merchandise in said year, except upon applica- 
tion to the Code Authority setting forth the amount of said mer- 
chandise to be sold and the approval of the said application by the 
Code Authority. 



67 
Article XI — Reports on Sales 

Section 1. Each member of the industry shall submit to the Code 
Authority quarterly statements showing the total net sales in dollar 
value of regular merchandise, drops iuul seconds for the preceding 
quarter. 

Section 2. Each member of the Industry shall submit to the Code 
Authority within 30 days after September 1st of each year the 
following information : 

(a) Total sales by square yards of price lines for preceding season. 

Article XII — Modifigaiton 

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 cancel or modify any order, approval, license, rule or regulation 
issued under said Act, 

Section 2. Such of the provisions of this Code as are not required 
to be included herein by the Act may, with the approval of the 
Administrator, be modified or eliminated in such manner as may be 
indicated by 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. 

Article XIII — Monopolies, etc. 

Section 1. No provision of this Code shall be so applied as to per- 
mit monopolies oi' monopolistic practices, or to eliminate, oppress or 
discriminate against small enterprises. 

Article XIV — Price Increases 

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

Articui XV — Effective Date 

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



Approved Code No. 512. 
Registrj^ No. 3311-1-01. 



o 



Approved Code No. 513 
CODE OF FAIR COMPETITION 

FOR THE 

COMMERCIAL AVIATION INDUSTRY 

As Approved on August 28, 1934 



ORDER 

Code of Fair Competition for the Commercial Aviation Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Indus- 
trial Recovery Act, approved June 16, 1933, for approval of a Code 
of Fair Competition for the Commercial Aviation Industry, and 
hearings having been duly held thereon and the annexed report on 
said Code, containing findings with respect thereto, having been 
made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No, G543-A, dated December 30, 
1933, and otherwise; do hereby incorporate by reference said an- 
nexed report and do find that said Code complies in all respects with 
the pertinent provisions and will promote the policy and purposes 
of said Title of said Act; and do hereby order that said Code of 
Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Indiistridl Recovery. 

Approval recommended: 

William P. Farnsworth, 

Acting Division Administrator. 

Washington, D.C, 

Auffust %8, 193Jf. 

83021° 1044-134 34 (69) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Commercial Aviation Industry as revised after a public hearing 
conducted thereon in Washington, D.C. on July 10, 1934 in accord- 
ance with the provisions of the National Industrial Recovery Act. 

PROVISIONS AS TO WAGES AND HOURS 

Maximum hours for employees are established as follows : Clerical 
employees 40 hours per week, mechanics and mechanics' helpers 48 
hours per week; watchmen, caretakers and general field utility 
employees not more than 54 hours in any one week. 

No employees shall be paid less than at the rate of $15.00 per 
week in places of more than 50,000 population or in the immediate 
trade area thereof or less than at the rate of $13.00 per week in 
places of less than 50,000 population. Provision is made for an 
equitable adjustment of wages above minimum. 

Employment of any person under 16 years of age and anyone 
under 18 years of age at occupations hazardous in nature or danger- 
ous to health is prohibited. 

In recommending the approval of the hour provision of this 
Code, it has been necessary to recognize that this industry is pro- 
viding a service to the public requiring 24 hours per day operation 
throughout the year and activities are subject to interference by, 
and to a certain extent dependent upon, weather conditions. 

ECONOMIC EFFECTS OF THE CODE 

This industry has experienced a serious curtailment of activity 
since 1929 as indicated by the reduction in number of airplane hours 
flown per annum reported in 1929 as 1,304,207 and in 1933 as 457,427. 
Estimate of the Bureau of Air Commerce, Department of Commerce, 
indicates the investment in commercial and private airports exceeds 
$56,000,000.00. 

The direct effect of this Code is found in the organization of an 
hitherto unorganized industry towards the utilization of its full 
productive capacity. Elimination of unfair trade practices and de- 
structive competitive (methods shoidd increase public confidence in 
the industry with consequent increase in volume of business. 

The economic welfare of this industry, as an organized industry, 
l^roviding airports, training pilots and mechanics, and encouraging 
private ownership of aircraft, is considered to be of importance to 
the Nation in its defense and in its improvement of transportation 
facilities. 

(70) 



71 

At the present time information is not available as to the extent 
of the Commercial Aviation Industry but this Code will make avail- 
able for the first time complete registration of the facilities and the 
scope of this industry. 

FINDINGS 

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

I find that : 

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

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

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

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

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

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

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator^ 
Washington, D. C, 

August 28, 193^. 



CODE OF FAIR COMPETITION FOR THE COMMERCIAL 
AVIATION 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 Commercial Aviation Industry, and its 
provisions shall be the standard of fair competition for such indus- 
try and shall be binding upon every member thereof. 

Article II — Definitions 

1. The term " Commercial Aviation Industry " as used herein 
includes any and all nonscheduled, miscellaneous flying activities in 
the aviation industry, as distinguislied from scheduled point-to- 
point air transportation as covered by the Code of Fair Competition 
for the Air Transport Industry and manufacturing, as covered in 
the Code of Fair Competition for the Aircraft Manufacturing 
Industry ; the operation and maint-enance of airports ; the operation 
and maintenance of all types of aviation schools; the servicing, 
maintaining, repairing, and storing of aircraft, engines, propellers, 
parts, instruments, and/oT accessories therefor, together with para- 
chutes; the selling and/or distributing at wholesale or retail air- 
craft, engines, propellors, parts, instruments, accessories, parachutes, 
and other materials and services appertaining thereto, excluding sales 
by the manufacturer of his own products at wholesale; and in addi- 
tion thereto all other types of industries in the field of aviation not 
included in the two Codes above mentioned, together with such 
related branches or subdivisions as may from time to time be in- 
cluded under the provisions of this Code. 

1. The term " member of the industry " includes, but without 
limitation, any individual, partnership, association, corporation, or 
other form of enterprise engaged in the Industry, either as an em- 
ployer or on liis or its own behalf. 

2. The term " employee " as used herein includes any and all per- 
sons engaged in the Industry, however compensated, except a member 
of the Industry. 

3. The term " emi^loyer " as used herein includes anyone by whom 
such employee is compensated or employed. 

4. The term " student " as used herein includes anyone regularly 
enrolled in a scliool of aviation for instruction. A student not 
earning tuition is not to be considered an employee, even though 
he may be })erforming work usually assigned to an employee. A 
student earning his tuition in whole or in part is to that extent to 
be considered an employee. 

(72) 



73 

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

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

Article III — Hours 

Section 1. Maxivium Hours. — 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 one day, nor more than six (6) days in any 
seven (7) day period, unless for hours worked in excess of eight (8) 
hours per day or forty (40) per week, he is compensated by not less 
than one and one-third times the normal rate of pay. 

Section 2. Exceptions. — The following are excepted from the 
hours provisions of Section 1 above : 

(a) Mechanics, mechanics' helpers, and employes on emergency 
maintenance or emergency repair work involving accidents endan- 
gering life or property, provided that for hours worked in excess of 
eight (8) hours per day, or forty-eight (48) per week, they shall be 
compensated at least one and one-third times their normal rate of 
pay. 

(b) Watchmen, caretakers, and general utility field employes pro- 
vided that they shall not work more than fifty-four (54) hours in 
any week, unless in case of emergency, and then they shall be com- 
pensated at not less than one and one-third times their normal rate 
of pay for hours worked in excess of fifty-four (54) per week. 

(c) Pilots, provided that they shall not work more than one hun- 
dred (100) flying hours per month or as this clause may be modified 
by the Administrator on recommendation of the Department of 
Commerce. 

(d) Persons employed in managerial, executive, professional 
capacities, who regularly receive more than Thirty-five ($35.00) 
Dollars per week. 

Section 3. Employment hy Several Employers. — No employer 
shall loiowingly permit an employee to work for any time which, 
when totaled with that already performed with another employer or 
employers, exceeds the maximum permitted herein. 

Article IV — ^Wages 

Section 1. Mininvnon Wages. — The minimum wage rate in this 
Industry shall not be less than at the rate of fifteen ($15.00) dollars 
per week in places of more than 50,000 population or in the immedi- 
ate trade area thereof nor less than at the rate of thirteen ($13.00) 
dollars per week in places of 50,000 population or less. 

Section 2. Minimimi Wage Rates hy Locality /Occupation. — After 
the approval of this Code, the Code Authority may present for ap- 
proval to the Administrator, after notice and hearing, recommenda- 
tions as to the upward adjustments in minimum wages for specified 
regions/occupations in order to effectuate the purposes of the Act. 



74 

Section 3. Wages above Minivium. — There shall be an equitable 
adjustment of all wages above minimum, and to that end, within 
sixty (CO) days from the approval of this Code, the Code Authority 
shall submit for the approval of the Administrator a proposal for 
adjustment in wages above the minimum. Upon approval by the 
Administrator, after such hearing as he may prescribe, such proposal 
shall become binding as a part of this Code, provided, however, that 
in no event shall hourly rates of pay be reduced. 

Section 4. Female Employees. — Female employees performing 
substantially the same work as male employees shall receive the same 
rat« of pay as male employees, and where they displace men they 
shall receive the same rate of earnings as the men they displace. 

Section 5. Handicapped Persons. — A person w^hose earning ca- 
pacity is limited because of age, physical or mental handicap, or other 
infirmity, may be employed on light work at a wage below the mini- 
mum established by this Code, if the employer obtains from the 
state authority, designated b}'^ the United States Department of 
Labor, a certificate authorizing such person's employment at such 
wages and for such hours as shall be stated in the certificate. Such 
authority shall be guided by the instructions of the United States 
Department of Labor in issuing certificates to such persons. Each 
employer shall file monthly with the Code Authority a list of all such 
persons employed by him, showing the wages paid to, and the maxi- 
mum hours of work for such employee. 

Article V — General Labor Provisions 

Section 1. Child Labor. — No person under sixteen (16) years of 
age shall be employed in the Industry. No person under eighteen 
11B>) years of age shall be employed at operations or occupations 
which are hazardous in nature or dangerous to health. The Code 
Authority shall submit to the Administrator wathin 30 days after 
the effective date of this Code a list of such operations or occupations 
for his approval. In any State an employer shall be deemed to have 
complied with this provision as to age if he shall have on file a certifi- 
cate or permit duly signed by the Authority in such State cmpowei'ed 
to issue employment or age certificates or permits showing that the 
employee is of the required age. 

Section 2. Provisions from the Act : 

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

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

(c) Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of emploj'ment, 
ai^proved or prescribed by the President. 

Section 3. Kvasioii Through Subterfu-ge. — No employer shall re- 
classify employees or duties of occupations performed or engage in 



75 

any other subterfuge so as to defeat the purposes or provisions of 
the Act or of this Code. 

Section 4. Standards for Safety and Health. — Every employer 
shall provide for the safety and health of employees during the 
hours and at the places of their employment. Standards for safety 
and health shall be submitted by the Code Authority to the Admin- 
istrator within three (3) months after the effective date of the Code. 

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

Section 6. Posting. — All employers shall post and keep posted 
copies of this Code in conspicuous places accessible to all employees. 
Every member of the Industry shall comply with all rules and 
regulations relative to the posting of provisions of Codes of Fair 
Competition which may from time to time be prescribed by the Ad- 
ministrator. 

Section T. No employee shall be dismissed or discriminated 
against by reason of making complaint or giving evidence with 
respect to a violation of this code. 

Article VI — Organization, Powers & Duties of Code Authority 

Section 1. Organisation and Constitution. — A National Code Au- 
thority is hereby established consisting of 13 voting members to be 
selected in the following manner : 

(a) Eleven (11) of such voting members shall be selected by the 
Regional Code Authorities hereinafter provided for; each such 
Regional Code Authority shall select one (1) member by a fair 
method of selection to be approved by the Administrator. 

(b) The twelfth voting member shall be the President of the 
Independent Aviation Operators of the United States. The thir- 
teenth voting member shall be appointed by the Administrator. 

(c) In addition to membership as above provided, there may be 
one or more members without vote, to be known as Administration 
Members one (1) of whom may be a representative of the Bureau 
of Air Commerce, Department of Commerce, and all of whom are to 
be appointed by the Administrator to serve for such terms as he 
may specify. 

Section 2. (a) In addition to the National Code Authority, there 
may be constituted eleven (11) Regional Code Authorities of from 
three (3) to five (5) voting members each, which shall cooperate 
with the National Code Authority in the administration of this 
Code in their respective regions. 

The boundaries of each region shall be as follows, subject to such 
future modifications or changes as the National Code Authority, 
with the approval of the Administrator, may deem necessary. 

Region one (1) shall consist of the territory included within the 
states of Maine, New Hampshire, Vermont, Massachusetts, Connecti- 
cut, and Rhode Island. 

Region two (2) shall consist of the territory included within the 
states of New York, Pennsylvania, New Jersey, Maryland, Delaware, 
Virginia, and the District of Columbia. 

82021 ° 1044-134 2 



76 

Re^^ion three (3) shall consist of the territory included within the 
statey of Mississippi, Ahibania, Florida, Georf^ia, North Carolina, 
and South Carolina and the territorial possession of Puerto Rico. 

Region four (4) will consist of the territory included within the 
.states of Kentucky, Ohio, Tennessee, and West Virginia. 

Re*^ion five (5) will consist of the territory included within the 
states of Michi<2;an and Indiana. 

Region six (0) will consist of the territory included within the 
states of Nebraska, Colorado, Kansas, and Missouri. 

Region seven (7) will consist of the territory included within the 
states of Minnesota, Wisconsin, loAva, and Illinois. 

Region eight (8) will consist of the territor}' included within the 
states of Texas, Oklahoma, Arkansas, and Louisiana. 

Region nine (*J) will consist of the territory included within the 
states of Wasliington and Oregon and the territory of Alaska. 

Region ten (10) will consist of the territory included wnthin the 
states of Idaho, Montana, Wyoming, North Dakota, and South 
Dakota. 

Region eleven (11) will consist of the territory included within the 
states of California, Utah, Nevada, Arizona, and New Mexico, and 
the territory of HaAvaii. 

The members of such Regional Code Authorities shall be selected 
by the members of the Industry in each region by a fair method of 
selection to be determined by the National Code Authority subject to 
the approval of the Administrator. 

(b) In addition to membership on such Regional Code Authorities 
as above provided, there may be one or more members without vote, 
to be Imown as Administration ISIembers one (1) of vrhom may be a 
representative of the Bureau of Air Commerce, Department of Com- 
merce, and all of whom are to be appointed by the Administrator and 
shall serve for such terms as he may specify. 

Section 3. (a) Where necessary to properly effectuate the purposes 
of tlie Act or of this Code, the National Code Authority, on recom- 
mendation of a Regional Code Authority, shall provide for such 
Divisional or Local Code Authorities, or both, for such areas within 
the region of such Regional Code Authority, !is the National Code 
Authority deems advisable, subject to the approval of tlie Admin- 
istrator, Such Divisional or Local Code Authorities, or both, .shall 
consist of three (8) voting members to be selected by the members 
of the Industry in the particular area by a fair method of selection 
to be determined by the Regional Code Authority, and approved by 
the Administrator. 

(b) In addition to membership as above provided, there may be 
one or more members without vote to be known as Administration 
members, to be appointed by the Administrator to serve for such 
terms as he may sjjecify. 

Section 4. Tcviporary Organization. — Pending selection of eleven 
(11) regional voting members of the National Code Autliorit}', as 
hereinabove provided in Section 1 of this Article such voting mem- 
bers shall be appointed by the Administrator and shall continue in 
office until their successors are selected as above provided. 

Section 5. Each trade or industrial association directly or in- 
directly participating in the selection or activities of the Code Au- 



77 

thority shall (1) impose no inequitable restrictions on membership, 
and (2) submit to the Administrator true copies of its articles of asso- 
ciation, bylaAYS, 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 6. In order that the Code Authorities shall at all times 
be truly representative of the Industry and in other respects comply 
with tile provisions of the Act, the Administrator may prescribe 
such hearings as he may deem proper; and thereafter if he shall 
find that the Code Authorities, or any of them, are not truly repre- 
sentative or do not in other respects comply with the provisions of 
the Act, may require an appropriate modification of the Code 
Authorities, or any of them. 

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

Section 8. If a member of this Industry is also a member of an- 
other Industry for which a Code has been approved this Code shall 
apply only to that part of his business which is properly'- included 
under this Code. 

Section 9. Nothing contained in this Code shall constitute the 
members of the Code Authorities partners for any purpose. Nor 
shall any member of the Code Authorities be liable in any manner 
to anyone for any act of any other member, officer, agent, or em- 
ployee of the Code Authorities. Nor shall any member of the Code 
Authorities, exercising reasonable diligence in the conduct of his 
duties hereunder, be liable to anj^one for any action or omission to 
act under this Code, except for his own v\dllful malfeasance or 
nonfeasance. 

Section 10. The National Code Authority may appoint a com- 
mittee to confer with committees or representatives of the Air 
Transport Industry and/or other related industries for the purpose 
of establishing such an Industrial Relations Board as they may 
deem desirable to adjust by conference and negotiation any con- 
troversy concerning hours, wages, and conditions of employment, 
or compliance with the labor provisions of the code or codes govern- 
ing the respective industries. 

Section 11. Powers and Duties. — Subject to such rules and regu- 
lations as may be issued by the Administrator, the National Code 
Authority shall have the following powers and duties, in addition 
to those authorized by other provisions of this Code. 

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

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



78 

(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 National 
Code Authority, members of the Industry subject to this Code shall 
furnish such statistical information as the Administrator may deem 
necessary for the purposes recited in Section 3 (a) of the Act to 
such Federal and State agencies as he may designate ; provided that 
nothing in this Code shall relieve any member of the Industry of 
any existing obligations to furnish reports to any Government 
agenc3\ No individual report shall be disclosed to any other mem- 
ber of the Industry or any otlier party except to such other Govern- 
mental agencies as may be directed by the Administrator. 

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

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

(f ) 1. It being found necessary in order to support the adminis- 
tration of this Code and to maintain the standards of fair competi- 
tion established hereunder and to effectuate the policy of the Act, 
the National 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 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 
tliat 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 National Code 
Authority, determined as hereinabove provided, and subject to rules 
and regulations pertaining thereto issued by the Administrator. 
Only members of the Industry complying with the Code and con- 
tributing to the expenses of its administration as hereinabove pro- 
vided, (unU\'<s 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. 

3. The National Code Authority shall neither incur nor pay any 
obligation substantially in excess of the amount thereof as esti- 



79 

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 item for expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

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

(h) To appoint a Trade Practice Committee which shall meet 
with the Trade Practice Committees appointed under such other 
codes as may be related to the Industry for the purpose of formulat- 
ing fair trade practices to govern the relationships between employ- 
ers under this Code and under such other codes to the end that such 
fair trade practices may be proposed to the Administrator as amend- 
ments to this Code and such other codes. 

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

(j) To elect ofiicers and committees and assign to them such 
duties and powers as it may consider advisable, and to provide for 
its own procedure as the administration agency of this Code. 

Section 12, The Regional Code Authorities shall have the fol- 
lowing powers and duties subject to the review of the National 
Code Authority, and subject always to such rules and regulations 
as may be issued by the Administrator. 

(a) To adopt bylaws and rules and regulations for their pra- 
cedure. 

(b) To elect officers and committees and assign to them such 
duties and powers as may be considered advisable. 

(c) With the approval of the National Code Authority and the 
Administrator to make such additional regional regulations and 
trade practice rules as shall be necessary to accomplish the purposes 
of this Code and to allow, where necessary, divisional or- local Code 
Authoritias to make such divisional or local regulations and trade 
practice rules as are necessary to accomplish the purposes of this 
Code. 

Article VII— Registration 

Section 1. Every member of the Industry shall, within sixty (60) 
days aft^r the effective date of this Code, or within ten (10) days 
after becoming a member of the Industry, and annually thereafter, 
register with the National Code Authority his name, together with 
a description of the nature of his business operations and such other 
information as may be required by the National Code Authority 
with the approval of the Administrator. 

Section 2. After sixty (60) days after the effective date of this 
Code it shall be a violation of this Code for any member of the 
Industry to operate a business coming under the provisions of the 



80 

Code of Fair Competition for the Commercial Aviation Industry 
as defined in Article II without registering as provided in Section 
1 above. 

Section 3. The National Code Authority may, with the approval 
of the Administrator, furnish to each registered member of the In- 
dustry, a certificate or other insignia and may issue regulations with 
the approval of the Administrator concerning the proper display of 
such insignia, which shall be binding on all members of the Industry. 

Section 4. The cost of such registration and such insignia may 
be assessed against each member of the Industry as a registration 
fee, subject to the- approval of such fee by the Administrator. 

Article VIII — Cost 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 
comj>etition and is forbidden. Any member of the Industry or 
of any other industry or the customers of either maj^ at any time 
comj^lain to the National Code Authority that any price charged 
for any sjiecific product, commodity or service by any member of 
the Industry constitutes unfair competition as destructive price cut- 
ting, imperiling small enterprises or tending toward monopoly or 
the impairment of code wages and working conditions. The Na- 
tional Code Authority shall within five (5) days afford an oppor- 
tunity to the member complained against 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) AVhen no declared emergency exists as to any given product, 
commodity or service, 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 deter- 
mination of pricing policies. 

(c) When an emergency exists as to any given product, commod- 
ity or service, sale below the stated minimum price of such product, 
commodity or service, in violation of Section 2 hereof, is forbidden. 

Section 2. Emergency Provisions: 

(a) If the Administrator, after investigation, shall at anj' time 
find both (1) that an emergency has arisen within the Industry in 
any region or division adversely affecting small enterprises or wages 
or labor conditions, or tending toward monopoly or other acute 
conditions which tend to defeat the purposes of the Act; and (2) 
that the determination of the stated minimum price for a specified 
product, commodity or service within the Industry, Region or Divi- 
sion for a limited period is necessary to mitigate the conditions con- 
stituting such emergency and to effectuate the purposes of the Act, 
the National Code Autliority may cause an impartial agency to 
investigate costs and to reconmiend to the Administrator a deter- 
mination of the stated minimum price of the product, commodity 



81 

or service affected by the emergency and thereupon the Adminis- 
trator may proceed to determine such stated minimum price. 

(b) "Wlien the Administrator shall have determined such stated 
minimum price for a specified product, commodity or service 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, 
Region or Division shall sell such specified product, commodity or 
service 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 National Code Authority rxiay recommend review 
or reconsideration or the Administrator may cause any determina- 
tions hereunder to be reviewed or reconsidered and appropriate 
action taken. 

Article IX — Cost Finding and Accounting 

Section 1. The National Code Authority may cause to be formu- 
lated 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 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 any 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. 

Section 2. Members of the Industry who perform work usually 
assigned to employees, shall include, in their costing, wages for 
such work at the current rate of pay common to that region. 

Section 3. Members of the Industry who employ students on 
work usually assigiied to employees shall include in their costing 
wages for such services at the current rate of pay common to that 
region for the class of work performed and the evaluation of the 
services given. 

Article X — Trade Practice Rules 

Rule 1. In^accwfate Advertising. — No member of the Industry 
shall publish advertising (whether printed, radio, display, or of any 
other nature) which is misleading or inaccurate in any material par- 
ticular, nor shall any member in any way misrepresent any goods or 
credit terms, values, policies, services, or the nature or form of the 
business conducted. 

Rule 2. False Billing. — No member of the Industry shall know- 
ingl}'^ withhold from or insert in any quotation or invoice any state- 
ment that makes it inaccurate in uny material particular. 

Rule 3. Inaocnrate Lahelling. — No member of the Industry shall 
brand or mark or pack any goods in any manner which is intended 



82 

to or does deceive or mislead purchasers with respect to the brand, 
grade, quality, quantity, size, substance, character, nature, finish, 
material content, or preparation of such goods. 

Rule 4. Defamation. — No member of the Industry shall defame a 
competitor by falsely imputing to him dishonorable conduct, in- 
ability to perform contracts, questionable credit standing, or by 
other false representation, or by falsely disparaging the grade or 
(juality of his goods. 

Rule 5. ThreaU of Law Suits. — No member of the Industry shall 
publish or circulate unjustified or unwarranted threats of legal 
proceedings which tend to or have the effect of harassing competi- 
tors or intimidating their customers. 

Rule 6. Secret Rebates. — No member of the Industry shall se- 
cretly offer or make any payment or allowance of a rebate, refund, 
commission, credit, unearned discount, or excess allowance, whether 
in the form of money or otherwise, nor shall a member of the In- 
dustry secretly offer or extend to any customer any special service 
or privilege not extended to all customers of the same class, for the 
purpose of influencing a sale. 

Rule 7. 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 representative of another in relation to the business of the 
employer of such employee, the principal, of such agent or the repre- 
sented party, without the knowledge of such employer, principal, or 
party. This provision shall not be construed to prohibit free and 
general distribution of articles commonly used for advertising ex- 
cept so far as such articles are actually used for commercial bribery 
as hereinabove defined. 

Rule 8. Inducing Breach of Existing Contracts. — No member of 
the industry shall wilfully induce or attempt to induce the breach 
of existing contracts between competitors and their customers by 
any false or deceptive means, or interfere with or obstruct the per- 
formance of any such contractual duties or services by any such 
means, with the purpose and efl'ect of hampering, injuring, or em- 
barrassing competitors in their business. 

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

Rule 10. Blacklisting. — No member of the Industry shall join or 
participate with other members of the Industry who with such mem- 
ber constitute a substantial number of members of the Industry, or 
who together control a substantial percentage of the business in any 
specific product or products of the Inchistry, 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 XI — Export Trade 

Section 1. No provisions of this Code relating to prices or terms 
of selling, shipping, or marketing shall apply to export trade or 
sales or shipment for export trade. " Export Trade •' shall be as 
defined in the Export Trade Act adopted April 10, 1918. 



83 

Article XII 

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. 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- 
ministrator, be modified or eliminated in such manner a,s may be 
indicated by the needs of the public, by changes in circumstances, or 
by experience. All the provisions of this Code, unless so modified 
or eliminated, shall remain in effect until June 16, 1935. 

Article XIII — 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 XIV — Price Increases 

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

Article XTV — Effecttvb Date 

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

Approved Code No. 513. 
Registry No. 1401-04. 

o 



Approved Code No. 514 
CODE OF FAIR COMPETITION 

FOR THE 

ARTIFICIAL LIMB MANUFACTURING INDUSTRY 
As Approved on August 28, 1934 



ORDER 



Approaing Code of Fair Competition for the Artificial Limb 
Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I oi the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Artificial Limb Manufacturing Industry, 
and hearing having been duly held thereon and the annexed report 
on said Code, containing findings with respect thereto, having been 
made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act; and do hereby order that said Code 
of Fair Competition be and it is hereby approved; provided, how- 
ever, that within ninety days I may direct that there be a further 
hearing on such of the provisions of said Code as I m.ay designate, 
and that any order which I may make after such hearing shall have 
the effect of a condition on the approval of said Code; provided, 
further, that the following changes be, and the same hereb}' are, 
made : 

(1) That Section 1 of Article III be, and the same hereby is 
amended to read as follows : 

" No employee shall be permitted to work in excess of forty (40) 
hours in any one week, or six (6) days in any seven day period, or 
eight (8) hours in any one day." 

(2) That Section 2 of Article III be, and the same hereby is 
amended to read as follows : 

" The provisions of this Article shall not apply to — 
(a) Employees engaged in emergencj^ work involving break downs 
or the protection of life or property, provided that such employees 

82937° 1044-125 34 (85) 



86 

shall be paid time and one-half the normal rat« of pay for all hours 
worked in exce;^ of forty (40) hours per week and eight (8) hours 
per da)'. 

(b) Executives who receive thirty -five (35) dollars or more per 
week, and outside salesmen." 

(y) That Section 8 of Article IV be, and the same hereby is 
amended to read as follows : 

"Apprentices may be employed at a wage not less tlian eighty (80) 
per cent of the minimum herein set foilli, provided, however, that 
the number of handicapjied apprentices shall not at any time exceed 
fifteen (15) per cent of the total number of employees in each estab- 
lishment, and the number of non-handicapped apprentices shall not 
at any time exceed five (5) per cent of the total number of em- 
ployees in each establishment. In cases where twenty (20) per cent 
is less than one, each member of the Industry shall be allowed one 
apprentice." 

(4) That Section 2 of Article VIII be, and the same hereby is 
amended to read as follows : 

" "When any member of the Industry has filed any revisions, such 
member shall not file a higher price wdthin forty-eight (48) hours." 

Hur.ii S. Johnson, 
Admimstrator fon' Indiistrud Recovery. 

Approval recommended : 
. Geo. L. Berry, 

Dlvi^on Administrator. 

Washington, D.C, 

August £8, 1934, 



KEPORT TO THE PRESIDENT 

The President, 

The WMfe House. 
Sir: This is a report on the Code of Fair Competition for the 
Artificial Limb Manufacturing Industry, the hearing having been 
conducted in Washington on the 27th day of March, 1933, in ac- 
cordance with the provisions of Title I of the National Industrial 
Recovery Act. 

GENERAL. STATEMENT 

The Artificial Limb Manufacturing Industry in 1933, embraced 
approximately 252 establishments engaged in the manufacturing, 
sale and servicing of artificial limbs and limb supplies, with an 
aggregate invested capital of approximately three and one-half mil- 
lion dollars. The aggregate annual sales have declined from ap- 
proximately $3,500,000.00 in 1929 to $2,750,000.00 in 1933. The 
Industrv's output fell from 88% in 1929 of its possible maximum 
production to 68% in 1933. 

HOURS AND WAGES 

The Code provides a standard work week of forty-five (45) hours 
and a standard work day of nine (9) hours. Exception is made for 
employees engaged in emergency work involving breakdowns or the 
protection of life and property, provided they are paid time and 
one-half for all overtime m excess of the standard work day and 
standard work week. Executives who receive thirty-five ($35.00) 
or more per week and outside salesmen are also exempted. 

The Code provides for a standard wage of 40<^ per hour with 
exceptions for accountants, clerical and office employees who are 
to be paid not less than $15.00 per week. Exception to the standard 
wage provision is also made for the apprentices who may be em- 
ployed for a period not to exceed six (6) months at eighty (80) 
percent of the minimum wage as established by the Code. It is 
also provided that female employees performing substantially the 
same work as male employees shall receive the same rate of pay as 
male emploj^ees. 

ECONOMIC EFFECT OF THE CODE 

There will probably be very little increase in emploj'^ment in this 
industry, as a result of the Code, because the number of skilled 
employees has remained almost constant over a period of years. The 
only variation in total number of emploj^ees has been that for the 
unskilled workers. A reduction of hours has caused a transfer of 
some of the less skilled work, formerly performed by the skilled 
workers, to the unskilled workers thus producing a slight increase 

(87) 



88 

in number of this class of employees. This industry has always paid 
their emplo^'ees a high average wage, with the minimum wage only 
being ])aid to about twenty-nve (25) percent of the employees in 
the industry. 

FINDINGS 

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

I find that: 

(a) Said Code is well 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 jDro- 
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 elim- 
inating unfair competitive practices, by promoting the fullest pos- 
sible utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

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

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

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

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

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

Members of this Industiy have co-operated in a most satisfactory 
manner w' ith the Administrator in the preparation of this Code. 

From evidence adduced during this hearing and from recommen- 
dations and reports of the various Advisory Boards it is believed 
that this Code as now proposed and revised represents an effective, 
practical, equitable solution for this Industry and for these reasons 
this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A diiimistrator. 
August 28, 1934. 



CODE OF FAIR COMPETITION FOR THE ARTIFICIAL 
LIMB LIANUFACTURING INDUSTRY 

Akticle I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act. this Code is established as a Code of Fair Competi- 
tion for the Artificial Limb Manufacturing Industry, and its pro- 
visions shall be the standards of fair competition for such industry 
and shall be binding upon every member thereof. 

Article II — Detixitions 

Section 1. The term " The Artificial Limb Manufacturing In- 
dustry " as used herein means and includes the business of producing 
and/or selling by the munufacturer of artificial limbs and/or limb 
supplies. 

Section 2. The term " member of the Industry " includes any 
individual, except those charitable institutions who have pledged 
themselves to the Shelt<}red Workshop Agi-eement, partnership, as- 
sociation, corporation or other form of enterprise engaged in the 
industry, either as an employer or on his or its own behalf. 

Section 3. The terms " President ", "Act " and "Administrator " 
as used herein shall mean respectively the President of the United 
States, Title I of the National Industrial Recover}^ Act, and the Ad- 
ministrator for Industrial Recovery. 

Section 4. The term " employee " as used herein includes any and 
all persons engaged in the industry, however compensated, except a 
member of the Industry. 

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

Section 6. Population for the purpose of this Code shall be de- 
termined by reference to the latest Federal Census. 

Article III — Hours 

Section 1. No employee shall be permitted to work in excess of 
forty-five (45) hours in any one week nor more than nine (9) hours 
in any twenty-four (24) hour period beginning at midnight; pro- 
vided that the forty-five (45) hours shall be^m Monday morning 
and terminate not later than one o'clock Saturday afternoon.^ 
Section 2. The provisions of this Article shall not apply to : 
(a) Employees engaged in emergency work involving break- 
downs or the protection of life or property, provided that such em- 
ployees shall be paid one and one-half times the normal rate of pay 
for all hours worked in excess of forty-five (45) hours per week and 
nine (9) hours per day. 

1 Amended — See paragraph 2 (1) of order approving tbig Code. 

(89) 



90 

(b) Executives ■who receive thirty-five ($35.00) dollars or more 
per week, and outside salesmen.^ 

SEcnox 3. No employer shall permit any employee to work a total 
number of hours which when complied with that already worked for 
nuothcr employer or employers exceeds the maximum pemiitted 
herein. 

Article IV — Wages 

Sectiox 1. No employee shall be paid in any pay period less 
than at the rate of forty (400) cents per hour, except as nereinafter 
provided. 

Section 2. No employer shall pay any accounting, clerical, office 
employee (except outside salesmen) less than at the rate of fifteen 
($15.00) dollars per week. 

Section 3. Apprentices may be employed at a wage not less than 
eighty (80%) per cent of the minimum herein set forth, for a period 
not to exceed six (6) months, provided, however, that the number 
of such apprentices shall not at any time exceed twenty (20%) per 
cent of the total number of employees in each establishment. In 
cases where twenty (20%) per cent is less than one, each member 
of the industry shall be allowed one apprentice.* 

Section 4. This article establishes a minimum rate of pay which 
shall apply, irrespective of whether an employee is actually com- 
pensated on a time rate, piece-work, or otlier basis. 

Section 5. No employee, except an employee engaged in a super- 
visory, managerial, executive or selling capacity who is paid fifty 
($50.00) dollars per week or more, shall be paid a wage rate, whether 
a time rate or piece rate or whether paid on a bonus, commission or 
other basis which will yield a less wage for the shorter full time week 
herein established than he could have earned for tlie same class of 
work for the longer full time week as of June 16, 1933. Wage in- 
creases established under the President's reemployment agreement 
shall at least be maintained. All employers who have not already 
made an equitable adjustment of wages, shall, within thirty (30) 
days after the effective date of this Code, make such equitable adjust- 
ments. Every employer shall, within sixty (GO) days after the 
effective date of this Code, report to the Code Authority for trans- 
mission to the Administrator, the action which he has taken in 
accordance with this Section. In no case shall rates of pay be 
reduced. 

Section G. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
emj)loyees, and when they are engaged to replace male employees, 
they shall receive at least the same rate of wages as the males whom 
they displace. 

Section 7. All employers shall make payment of all Avagcs duo 
in lawful currency or by negotiable check therefor, payable on 
demand. Wages shall be paid at the end of each weekly period. 
These wages shall be exempt from any payment of pensions, insur- 
ance or sick benefits other than those voluntarily paid by employees 
or prescribed by law. Employers or their agents shall not accept 

"Ainoiulod — See pnraKmph 2 (2) of order approving this Code, 
• Amended — See paragraph 2 (8) ot order approving this Code. 



91 

directly or indirectly rebates on such wa^es or give anything of 
value or extend any favors to any person tor the purpose of influ- 
encing rates of wages or working conditions of their employees. 

Section 8. The provisions of the Article 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 ($35.00) dollars per week, nor to persons emploj^ed 
in clerical or office work. The wages for persons employed in cleri- 
cal or office work shall be paid at the end of pay periods not to exceed 
semi-monthly periods. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in tlie industry, nor anyone under eighteen (18) years of 
age at operations or occupations hazardous in nature or detrimental 
to health. The Code Authority shall submit to the Administrator 
for approval a list of occupations or operations deemed hazardous 
in nature or detrimental to health within three (3) months from 
the effective date of this Code. In any State, an employer shall be 
deemed to have complied with this provision as to age, if he shall 
have on file a valid certificate or permit duly signed by the author- 
ity in such State empowered to issue employment or age certificates 
orjpermits showing that the employee is of the required age. 

Section 2. It is hereby provided tliat: 

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

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

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

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

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

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

Section 6. All employers shall post and keep posted copies of this 
Code in conspicuous places accessible to all employees. Every mem-^ 



92 

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

Section 7. For the purpose of this Code, physicians^ surgeons, and 
other persons attending, treating or caring for the sick, injured or 
deformed, as their patients or clients, in recommending or ordering 
the purchase by their clients of artificial limbs and/or supplies em- 
ployed in the treatment of deformities, shall not be considered bona 
fide employees. 

Sectiox 8. No employee now engaged at a rate above the minimum 
shall be discharged and reemployed or replaced by another at a 
lower rate for the purpose of evading the provisions of this Code 
or the purposes of the Act. 

Section 9. 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. 

Article VI — Administration 

Section 1. There shall forthwith be established a Code Authority 
consisting of five (5) persons to be selected by a fair method of 
selection approved by the Administrator from the Artificial Limb 
Manufacturing Industry. 

Seciton 2. In addition to "membership as above provided there 
may be three (3) members without vote and without compensation 
from the industry to be appointed by the Administrator to serve 
for such times as he may specify. 

Section 3. The Artificial Limb Manufacturing Industry Code 
Authorit}'^ may incorporate under the laws of any State of the 
L^nited States or of the District of Columbia, or may assume or 
adopt such existing corporate form under any of such laws as it 
maj' deem appropriate for the proper performance, as and from the 
effective date, of its activities, powers and duties hereunder, such 
corporation or corporate form to be not for profit and to be known 
as Artificial Limb Manufacturing Industry Code Authority, In- 
corporated; provided that the powers, duties, objects and purposes 
of the said corporation shall, to the satisfaction of the Admin- 
istrator, be limited to the powers, duties, objects and purposes of 
the Artificial Limb INIanufacturing Industry Code Authority as pro- 
vided in this Code; provided, further, that the existence of the said 
corporation shall be during the term of the Code; and provided, 
further, that the Code Authority shall submit to the Administrator, 
for his approval, its proposed Oertificatc of Incorporation and pro- 
posed by-laws, and no amendment of either shall be made without 
the like prior aj^proval of the Administrator; and provided fur- 
ther, that the Code Authority shall submit, with its proposed Cer- 
tificate of Incorporation and By-Laws, the written opinion of an 
attorney-at-law qualified in and conversant with the laws of the 
jurisdiction in which the Code Authority seeks to be incoiporated, 
as to the nature and extent of the jurisdiction, poAvers and authori- 
ties exercisable by the State in question and its agencies over the 
activities of the Code Authority as a corporation, supporting such 
opinion by citation of relevant authorities, and supplementing the 



93 

same with a table, certified to be complete, of all laws, statutes and 
other regulatory provisions governing corporations created pur- 
suant to the laws under which the Code Authority seeks to be in- 
corporated. 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 effectuation of the policies or purposes of the Act, he 
ma}'^, after such notice and hearing as he may deem necessary, re- 
quire an appropriate modification of the structure of the Corpora- 
tion (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 sub- 
stitution of a non-corporate Code Authority truly representativt 
of the industry or such other actions as he may deem expedient. 

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

Section 5. In order that the Code Authority shall at all times 
be trulv representative of the industry and in other respects comply 
with tne 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 re- 
quire an appropriate modification of the Code Authority. 

Section 6. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent or employee 
of the Code Authority. Nor shall any member of the Code Author- 
ity, exercising reasonable diligence in the conduct of his duties 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. 

Section 7. If the Administrator shall at any time determine that 
any action of a Code Authority or any agency thereof may be unfair 
or unjust or contrary to the public interest, the Administrator may 
require that such action be suspended to afford an opportunity for 
investigation of the merits of such action and further consideration 
by such Code Authority or agency pending final action which shall 
not be effective unless the Administrator approves or unless he shall 
fail to 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 
to provide for the compliance of the industry with the provisions of 
the Act. 



94 

(b) To adopt by-la"ws 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 Codo 
Authority, members of the Industry subject to this Code shall fur- 
nish such statistical information as the Administrator may deem 
necessary for the i)urposcs recited in Section 3 (a) of the Act to 
such Federal and State agencies as he may dcsigTiate; provided that 
nothing in this Code shall relieve any member of the Industry of 
any existing obligations to furnish rci)orts to any Government 
agency. No individual report shall be disclosed to any other member 
of the Industry or any other party except to such other Govern- 
mental agencies as may be directed by the Administrator. 

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

(e) To make recommendations to the Administrat-or for the co- 
ordination of the administration of this Codo and such otheF codes, 
if any, as may be related to or affect members of the Industry. 

(f) 1. It being found necessary in order to support the admin- 
istration of this Code and to maintain the standards of fair com- 
petition established hereunder and to effectuate the policy of tlie 
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 itmeized 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 Au- 
thority, determined as hereinabove provided, and subject to rules and 
regulations i)ci-taining thereto issued by the Administrator. Only 
membei-s of the Industry complying with the Code and contrib- 
uting to the expenses of its administration as hereinabove provided, 
shall be entitled to participate in the selection of members of the 
Code Authority or to receive the benefits of any of its voluntan^ 
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, 



95 

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. 

is) ^^ recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice pro\"isions 
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 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 
such fair trade practices may be proposed to the Administrator 
as amendments to this Code and such otker codes. 

(i) To provide appropriat-e facilities for arbitration, and subject 
to the ajjproval of the Administrator, to prescribe rules or pro- 
cedure and rules to effect compliance with awards and determina- 
tions. 

AfiTEOT.E VII — Cost and Price CirmNG 

SEcrriON 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 
comi)etition 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 filed price constitutes unfair 
competition as destructive price cutting, imperiling small enter- 
prises or tending toward monopoly or the impairment of code wa^es 
and working conditions. The Code Authority shall within five (5) 
days afford an opportunity 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 Research 
and Planning Division of N.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 considera- 
tion should bo given to costs in the determination of pricing policies. 

(c) When an emergency exists as to any given product, sale be- 
low the stated minimum price of such product, in violation of 
Section 2 hereof, is forbidden. 

Section 2. Emergency Provisions: 

(a) If the Administrator, after investigation shall at any time 
find both (1) that an emergencj has arisen within the industry ad- 
versely affecting small enterprises or wages or labor conditions, or 
tending toward monopoly or other acute conditions which tend to 
defeat the purposes of the Act; and (2) that the determination of 



96 

the stated minimum price for a specified product within the industry 
for a limited period is necessary to mitigate the conditions con- 
stitutinf^ such emergency and to effectuate the purposes of the Act, 
the Code Authority may cause an impartial agency to investigate 
costs and to recommend to the Administrator a determination of 
the stated minimum price of the product affected by the emergency 
and thereupon the Administrator may proceed to determine such 
stated minimum price. 

(b) When the administrator shall have determined such stated 
minimum price for a specified product for a stated period, which 
price shall be reasonably calculated to mitigate the conditions of 
such emergenc}' and to effectuate the purposes of the National In- 
dustrial 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 
reconsideration or the Administrator may cause any determinations 
hereunder to be reviewed or reconsidered and appropriate action 
taken. 

Article VIII — Open Price 

Sectiox 1. Each member of the Industry shall file with a con- 
fidential and disinterested agent of the Code Authority, or, if none, 
then ^vith such an agent designated by the Administrator, identified 
lists of all of his prices, discounts, rebates, allowances, and all other 
terms or conditions of sale, hereinafter in this Article referred to 
as " price terms ", which lists shall completely and accurately con- 
form to and represent the individual pricing practices of said mem- 
ber. Such lists shall contain the price terms for all such standard 
products of the industry as are sold or offered for sale by said 
member and for such non-standard products of said member as 
shall be designated by the Code Authorit3\ Said price terms shall 
in the first instance be filed within thirty (30) days after the date 
of approval of this provision. Price terms and revised price terms 
shall become effective immediately upon receipt thereof by said 
agent. Immediately upon receipt thereof, said agent shall by tele- 
graph or other equally prom])t means notify said member of the 
time of such receipt. Such lists and revisions, too;ether with the 
efl'ective time thereof, shall upon demand immediately be made 
available to any member of the Industr}' and to all oi their cus- 
tomers who have applied therefor and have offered to defray the 
cost actually incurred by the Code Authority in the preparation 
and distribution thereof and be available for inspection by any of 
their customers at the oflice of such agent. The Code Authority 
shall maintain a permanent file of all price terms filed as herein 
provided, and shall not destroy anj^ part of such records except 
upon written consent of the Administrator. Upon request the Code 
Authority shall furnish to the Administrator or any duly desig- 
nated agent of the Administrator copies of any sucli lists or 
revisions of price terms. 



97 

Section" 2. When any member of the Industry has filed any 
revisions, such member shall not file a higher price within sixty 
(60) days/ 

Section 3. No member of the Industry shall sell or offer to sell 
any products of the industry, for which price terms have been filed 
pursuant to the provisions of this Article, except in accordance 
with such price terms. 

Section 4. No member of the Industry shall enter into any agree- 
ment, understanding, combination or conspiracy to fix or maintain 
price terms, nor cause or attempt to cause any member of the 
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 purpose of this Article 
to create. 

Article IX — Trade Practices 

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

Section 1. No member of the Industry shall offer or make any 
payment or allowance of a rebate, refund, commission, credit, un- 
earned discount or excess allowance other than of a legitimate nature 
as given in published price lists and/or discount sheets, whether in 
the form of money or otherwise nor shall a member of the Industry 
secretly offer or extend to any customer any special service or privi- 
lege not extended to all customers of the same class, for the purpose 
of influencing a sale. 

Section 2. To accept an order for an artificial limb by agreeing 
to credit the payment of a deposit already made to another manu- 
facturer; or to deduct the amount of the deposit paid to another 
manufacturer from the price of a limb, or to cause a person who 
has already placed a bona fide order for an artificial limb with an- 
other manufacturer to cancel such order, is prohibited. 

Section 3. No member of the Industry or his agent shall publish 
any advertising or utter any statement which refers inaccurately 
in any material particular to his products or to any competitors or 
their goods, prices, values, credits, terms, policies or services. Nor 
shall any member of the Industry exhibit or cause to be exhibited 
samples or alleged samples of a competitor's products. 

Section 4. The Code Authority shall within tliirty (30) days 
after the effective date of this Code establish an order form and 
warranty vvdiich shall be capable of uniform application through- 
out the industry which shall be submitted to the Administrator and 
upon his approval thereof shall be used by every member of tiie 
Industry. 

Article X — Modification 

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



* Amended — See paragraph 2 (4) of order approving this Cede. 



98 

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

AirncLE XI — Moxopolies 

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 XII — Price Increases 

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

Article XIII — Effecti%'e Date 

This Code will become effective on the third Monday after its 
approval by the President. 

Approved Code No. 514. 
Registry No. 1602-02. 

o 



Approved Code No. 515 
CODE OF FAIR COMPETITION 

FOR THE 

ALLOYS INDUSTRY 

" Approved on September 5, 1934 



OEDER 



Approving Code of Fair Competition for the Alloys Industry 

An application ha ring 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 Alloys Industry, and hearings having been 
duly held thereon and the annexed report on said Code, containing 
findings with respect thereto, having been made and directed to the 
President : 

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

Hugh S. Johnson, 
Administrato?' for Industrial Recovery. 

Approval recommended: 
R.W.Lea, 

Ass^istant Administrator for Industry, 

Washington, D.C, 

Septemher 6, 1934. 

84142' 1181-10 84 (90) 



Rp]PORT TO thp: president 

The President, 

The White Bmise. 

Sir: The original Code of Fair Competition was presented as a 
Code of Fair Trade Practice for the Electro Chemical Fcrro Alloy 
Industry as a division of the Chemical Manufacturing Industry, sup- 
plementary to the Code of Fair Competition for the Chemical Manu- 
facturing Industry, as presented by the Chemical Alliance, Inc. 

Subsequently in keeping with the desires and policies of the 
N.R.A. the scope of this code was broadened to cover alloys other 
than those made by Electro Chemical processes. 

This code is presented by the American AUo}^ Producers Associa- 
tion, an unincorporated membership society organized in 1933, rep- 
resenting over 90% of the known members of industry, and over 90% 
in volume of production. 

Several revisions of the proposed code were made prior t-o the 
Public Hearing which was held on June 25, 1934. This code was 
revised during the recess of this hearing and was submitted in its 
present form for approval. 

Every person who requested an appearance was properly heard 
in accordance with statutory and regulatory requirements. 

The Alloys Industry, as outlined in this code, embraces the pro- 
duction, within the United States, by any process of manufacture, of 
primaiy alloys and/or non-metallic metallurgical reagents for sub- 
vsequent use as an additive agent for the purpose of alloying and/or 
deoxidizing, and/or refining, but not for fluxing, and the original 
sale in the United States of any Industry Product by a Member of 
Industry producing the same directly or indirectly either by him- 
self or 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 ISIember of In- 
dustry. 

Industry Products include the alloy combinations of the elements 
of the Periodic System with iron, the constituent elements or combi- 
nations thereof of such alloys without iron, and/or non-metallic 
metallurgical reagents for subsequent use as an additive agent for 
the ])urpose of alloying, and/or (k^oxidizing, and/or retinino;, but 
not for fluxing. Industry Products do not include standar(r high 
carbon ferro manganese or spiegeleisen, or the production of such 
metals which may be used for alloying processes which are governed 
by other Codes of Fair Competition. 

Although this is a relatively small Industry, the Alloys Industry 
has played a very important role in our industrial development. 

Prior to the advent of the auton)obile and liigh speed tool steel, 
ferro manganese, s[)iegeleisen and ferro silicon were t!ie most com- 
monly known a Hoys and were used primarily as deoxidizing agents 

(100) 



101 

and for the alloying value of the residual manganese and silicon. 
Although ferro manganese, spiegeleisen and ferro silicon still con- 
tinue to represent the greatest tonnage of alloys used, the use thereof 
has been supplemented by other alloys designed to add to metals cer- 
tain properties to meet the demands of stress and service. 

Although alloy combinations without iron and non-metallic met- 
allurgical reagents are used extensively, the manufacture of ferro 
alloys represent the predominant activity of the Industry. 

Each alloy constituent, either singly or in combination with other 
elements, contributes certain properties to meet the requirements of 
Industry; not only to meet the requirements of increased stress de- 
mands but also for resisting corrosion as is evidenced by the de- 
velopment of stainless steel. To meet these varying requirements 
necessitates the use of ferro chrome, ferro tungsten, ferro vanadium, 
ferro titanium, ferro zirconium, ferro phosphorus, ferro molybdenum 
and the combination thereof. The raw materials from which many 
of these alloys are made are imported from Africa, China, Peru and 
India. 

The Industry employed about 4,000 employees in 1929 and aboui> 
2,500 in 1933. The Industry represents a capital investment of 
$82,000,000 and sales of about $17,000,000 in 1932 and $9,000,000 
in 1933. With return to normalcy and continued and increased de- 
mands for the use of alloj^s the Alloys Industry should again enjoy 
its former position in Industry. 

The total quantity of ferro alloy code products shipped from 
United States furnaces in 1929 was 372,000 short tons valued at 
$39,000,000 ; in 1933 the total was 244,000 short tons, valued at $18,- 
000,000. Ferro silicon, used as a deoxidizing agent in steel making 
constitutes the largest item of the group. Shipments in 1929 amounted 
to 310,000 short tons valued at $15,700,000 and in 1933 to 200,000 
short tons valued at $7,400,000. Shipments of ferro tungsten in 
1929 were 3,000 tons, valued at $5,800,000 and in 1933, 952 tons, 
valued at $1,500,000; of ferro vanadium 1,800 tons valued at $4,700,- 
000 in 1929 and 900 tons, valued at $2,000,000 in 1933. All other 
varieties of ferro alloys accounted for 57,000 tons valued at $13,000,- 
000 in 1929 and 42,000 tons valued at $7,300,000 in 1933. 

Article I. States the purpose of the code. 

Article II. Accurately defines specific terms applicable to the 
Alloys Industry as used in this code. 

Article III. The maximum hours are limited to 40 hours per 
week except that employees may be permitted to work in excess of 
40 hours per week in not more than six weeks in any six month 
period in order to meet seasonal or peak requirements ; such employees 
my be permitted to work not more than 48 hours per week with the 
proviso that time and one-third shall be paid to any employee so em- 

Eloyed for all hours worked in excess of 40 hours per week or eight 
ours per day. Similar provisions are made to meet the requirements 
of continuous processes. Clerical and office employees shall not be 
permitted to work in excess of 40 hours per week averaged over any 
five week period ; provided, that in one week of such five week period 
any employee may be permitted to work not in excess of 48 hours. 
Watchmen may be permitted to work either 84 hours in any two 
week period or 66 hours in any one week period ; provided, that such 



102 

employees shall have at least one day's rest in each seven day period. 
Employees engaged in an executive, managerial, supervisory or tech- 
nical capacity and their immediate assistants who receive not less 
than $35.00 per week, and to outside sales and outride sales service 
employees and to those engaged in emergency maintenance or emer- 
gency repair work involving plant breakdown or protection of life 
or property which necessitates longer hours, are not subject to hourly 
limitations. 

Article IV. This Article provides that no employee shall be paid 
in any pay period less than at the rate of 30?^ per hour in the 
Southern District, nor less than at the rate of 40^ per hour else- 
where in the United States. Wage rat«s in effect on July 1st, 1933, 
above the minimums specified shall not be reduced in any case. The 
minimum weekly wage for persons emi)loyed in clerical or ollice 
work is $15.00 per week. The minimum rate of pay for work per- 
formed in any pay period shall apply irrespective of whether an 
employee is actually compensated on a time rate, piece work, or other 
basis. Provision is also made for the employment of handicapped 
persons, as well as for the adjustment of wages aboA^e the minimum 
if such adjustment has not heretofore been made under the National 
Industrial Recovery Act. 

Article V. This Article provides that no employer shall employ 
any person under 16 years of age and that no person under IS years 
of age shall be employed except in clerical, officej sales, service, tech- 
nical and engineering departments. This Article also sets forth 
mandatory provisions respecting the rights of employees to organize 
and bargain collectively. It also provides for matters having to do 
with reclassification of employees, standards for safety and health, 
the observance of state laws and the posting of complete copies ot 
this code so that they are accessible to employees. Provision is also 
made with reference' to company towns and stores and dismissals for 
complaint. 

Article VI. This Article establishes a Code Authority consisting 
of seven members who shall be selected by and who may be members 
of the Executive Committee of the Alloy Producers Association, and 
one other member who shall be a Member of Industry not a member 
of the Association. The selection of all members of the Code Au- 
thority shall be by a fair and equitable method of election to bo 
approved by the Administrator. In addition to the above member- 
sliip there ma^^ be not more than three representatives without vote 
and without compensation from the Industry to be appointed by the 
Administrator for such terms as he may specify. In addition to the 
organization of the Code Authority tlie powers and duties thereof 
are outlined in this Article. 

Article Yll. This Article makes provision for Trade Practice 
Rules. 

AirricLE VIII. This Article makes provision that the Code Au- 
thority may recommend to the Administrator that present capacities 
be not increased until .such time as the Code Authority and the Ad- 
jninistrator, or the Administrator acting on his own behalf, shalK 
determine that the demand for such products of Industry cannot be 
met by the fullest possible use of such present capacities. 



103 

Aeticle IX. This Article provides for Export Trade. 

Article X. This Article makes provisions for the modification of 
this code. 

Article XL This Article provides that 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 XII. This Article provides that this code shall become 
effective ten days after its approval by the President. 

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

I find that: 

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

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

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

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

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

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

For these reasons, therefore, this code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Admirmtrator* 
September 5, 1934. 



€ODE OF FAIR COMPETITION FOR THE AJLLOYS 

INDUSTRY 

Artici.e I — Purposes 

To eft'ectuate the policies of Title I of the National Industrial 
Recovery Act, this code is established as a Code of Fair Competition 
for the Alloys Industry and its provisions shall be the standards of 
f-air competition for such Industry and be binding upon every mem- 
ber thereof. 

Ar'IICLE II — DfTJNITIONS 

Wherever used in this code or any supplement appertaining 
thereto, the terms enumerated in this Article shall have the mean- 
ings herein delined, unless the context shall otherwise clearly 
indicate. 

Sectfion 1. The term " President " means the President of the 
United States of iLmerica. 

Section 2. The term "Act" means Title I of the National ludus- 
trial Recovery Act. 

Section 3. The term "Administrator" means the Administrator 
for Industrial Recovery. 

Section 4. The term " Member of Industry " includes, but with- 
out limitation, any individual, partnership, association, corporation 
or other form of enterprise engaged in the Industr}'^, either as an 
employer or on his or its own behalf. 

SEcnoN 5. The te^rm " Employee " means and includes anyone 
engaged in the Industry in any capacity receiving comijensation for 
his services irrespective of the nature or method of payment of such 
compensation, except a Member of the Industiy. 

Section G. The term " Employer " means anyone by whom any 
such employee is employed or compensated. 

SuciiON. 7. The term " Industry " includes all those producing, 
within the United States, by any process of manufacture, primary 
alloys, and/or nonmetallic metallurgical reagents for subsequent use 
as an additive agent for the purpose of alloying, and/or deoxidiz- 
ing, and/or refining, but not for fluxing, and the original sale in the 
United States of any such Industry products by the Member of 
Industry producing the same directly or indirectly either by him- 
self or 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 ccmtrol to a Member 
of Industry. 

Section " 8. The term " Industry Products " includes the alloy 
combinations of the elements of the Periodic System with iron, the 
constituent elements or combinations thereof of such alloys without 
iron, and/or nonmetallic metallurgical reagents for' subsequent use 
as an additive agent for the purpose of alloying, and/or deoxidizing, 

(104) 



W5 

and/or refining, but not for fluxing. Tlie term " Industry Prod- 
ucts " does not include standard high carbon Ferro Manganese or 
Spiegeleisen, or the production of such metals which may be t?scd 
for alloying processes which arc governed by other Codes of Fair 
Competition. 

SEC"nox 9. The words " Export Trade '• mean (as defined in the 
Export Trade Act adopted April 10, 1918) solely trade or com- 
merce in goods, wares or merchandise exported, or in the course 
of being exported from the United States or any territory ther-eof 
to any foreign nation ; but the words " Export Trade " shall not be 
deemed to include the production, manufacture, or selling for con- 
sumption 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 productioB^ manufacture or selling for consumption or for 
resale. 

Section 10. The term "Association " shall mean the American 
Alloy Producers Association, a voluntary unincorporated Associa- 
tion. 

Section 11. The term " Executive Committee " shall mean the 
Executive Committee of the Association. 

Section 12. The term " Secretary " shall mean the Secretary of the 
Code Authority, who shall also be the Secretary of the Association. 

Section 13. The term " Southern District " shall mean : Virginia, 
North Carolina, South Carolina, Kentucky, Tennessee, Georgia, 
Florida, Alabama, Mississippi, Louisiana, Arkansas and Texas. 

Article III — IIoubs of Labor 

Section 1. Alaxhnwni Hours. — No employee shall be permitted to 
Avork in excess of forty (40) hours in any calendar week or eight (8) 
hours in any twenty-four (24) hour period, except as herein other- 
wise provided. 

Section 2. Hours for Clerical and Office Employees. — No person 
employed in clerical or office work shall be permitted to work in 
excess of forty (40) hours in any one (1) week, or eight (8) hours 
in any one (1) day, except that during one (1) week in any four (4) 
or five (5) week period that shall correspond as nearly as may be to 
the calendar month any of such employees may be permitted to work 
a maximum of forty-eight (48) hours. 

Section 3. Exceptions as to Hours. — The limitation as to hours 
of labor as specified in Sections 1 and 2 of this Article III and 
Section 4 as applied to Subparagraphs (b), (c) and (d) of this 
Section 3 shall not apply to the following : 

(a) During any period in which a concentrated demand upon 
any division of the Industry shall place an unusual and temporary 
burden for production work upon its facilities, or to meet peak 
requirements, or production emergencies, an employee of such divi- 
sion may be permitted to work not more than forty-eight (48) hours 
per week in not more than six (6) weeks in any six (6) month period; 
provided, however, that at least one and one-third (IVs) times his 
regular wage rate for any employee so employed shall be paid for all 
hours worked in excess of forty (40) hours per week or eight (8) 
hours per day. Each member who shall permit any emi)loyee to 

84142 ° 1181-10 34 2 



106 

•work in excess of eight (8) hours per clay or forty (40) hours per 
•week under the provisions of this Subsection (a) sliall report, upon 
the request of the Administrator, such overtime to the Code Au- 
thority, which shall in turn report to the Administrator. 

(b) Employees engaged in emergency maintenance or emergency 
repair work, involving plant breakdown or protection of life or 
property ; provided, that in such special cases at least one and one- 
third times (ly^) his regular wage rate for any employee so em- 
ploj'ed shall be paid for all houre worked in excess of iorty (40) 
hours in any one (1) week or eight (8) hours per day. 

(c) Outside sales and outside sales service employees. 

(d) Persons in a managerial, executive, supervisory or technical 
capacity and their immediate assistants; provided, that this excep- 
tion sliall apply to no such employee who is paid less than at a rato 
of Thirty-Five Dollars ($35.00) per week. 

(e) Watchmen who, according to the nature of their responsibili- 
ties, may be permitted to work either not more tlian eighty-four (84) 
hours in any two (2) week period or fifty-six (5G) hours in any one 
(1) week; provided, that such employees shall have at least one (1) 
clay's rest in each seven (7) day period. 

(f) Power-house operators, engineers, firemen and pumpmen; 
provided, the total number of hours worked by such employees shall 
not exceed forty-five (45) hours in any one (1) week, or nine (9) 
hours per day. 

(g) There may be a tolerance of ten percent (10%) additional 
hours over the maximum hours in any one (1) week for emploj^ees 
engaged in the preparation, care and maintenance of machinery and 
jTiroduction facilities, stock and shipping employees, chauffeurs and 
truckmen engaged in outside delivery and pick-up service ; provided, 
however, that at least one and one-third (1^^) times his regular wage 
rate for an}^ employee so employed shall be paid for all hours worked 
in excess of forty (40) hours in any one (1) week or eight (8) hours 
per day. 

(h) Skilled workers in continuous processes, the interruption of 
which would unavoidably reduce production beaiu.se of demands 
inherent and peculiar within the process itself; provided, however, 
that such employees in such cases .shall not be permitted to work 
more than forty-eight (48) hours- in any one (1) week, and pro- 
vided, that in such special cases at least one and one-third (ll^) 
times his regular wage rate shall be paid to any employee so em- 
ployed for hours worked above forty (40) hours per week or eight 
(8) hours per day. Each employer who shall permit any employee 
to work in excess of eight (8) hours per day or forty (40) hours 
])er week under the provisons of this Subsection (h), shall rejwrt, 
upon the request of the Administrator, such overtime to the Code 
Authority, which shall in turn report to the Administrator. 

Section 4. /Standard Week. — No employee shall be permitted to 
■work more than six (6) days in any seven (7) day period. 

Section 5. E niploymcnt hy Several Emj^loycrs. — No employer 
shall knowingly pennit any employee to work for any time which, 
when totalled with that already performed with another employer 
or employers in this Industry or other trades or industries, exceeds 
the maximum permitted herein. 



107 

Article IV — Wages 

Section 1. Minirrmm Wages. — Except as otherwise herein pro- 
vided no employee shall be paid in any pay period less than at the 
rate of thirty (30) cents per hour in the Southern District, nor less 
than at the rate of forty (40) cents per hour elsewhere in the United 
States. The minimum rates herein provided shall be construed as 
hiring rates applying to totally unskilled or common labor and all 
other classes of labor shall be compensated at rates above the mini- 
mum. Wage rates in effect on July 1st, 1933', above the minimums 
specified hereinabove sliall not be reduced in any case. 

Section 2. Clerical and Office Employees. — No clerical or office 
employee shall be paid less than at the rate of Fifteen Dollars 
($15.00) per week; provided, however, that office boys and girls and 
messengers may be paid not less than at a rate of 80% of the mini- 
mum hereinabove specified, and provided further that the number 
of such boys and girls and messengers so paid shall constitute not 
more than 5% of the total number of such employees of any one (1) 
office of any one (1) employer, but in any case each employer shall 
be entitled to employ one (1) such employee. 

Section 3. Piecework (Jovipensation — Miniimt'm Wages. — This 
Article establishes a minimum rate of pay for any pay period which 
shall apply, irrespective of whether an employee is actually compen- 
sated on a time-rate, piece-work, or other basis. 

Section 4. Wages Above the Minimum. — Equitable adjustments 
with respect to rates above the minimum shall be made within thirty 
(30) days after the effective date of this code by each employer who 
has not heretofore made such adjustments under the National Indus- 
trial Recovery Act. In no event, however, shall hourly rates be 
reduced in making such equitable adjustments. Within sixty (60) 
days after the effective date of this code each Member of Industry 
shall make a report of such adjustment whether made prior to or 
subsequent to date of approval of this code to the Code Authority. 

Section 5. Payment of Wages. — Each emploj^er shall make pay- 
ment of all wages in lawful currency, or by negotiable check there- 
for, payable on demand. These wages shall be exempt from any 
payments for pensions, insurance or sick benefits other than those 
voluntarily paid by the wage earner or required by law. Pay 
periods for wages shall be at no greater interval than every semi- 
month, and salaries at no greater interval than every month. No 
employer shall withhold wages except as otherwise provided by law. 

Section 6. Haridicapped Persatis. — A person whose earning capac- 
ity is limited because of age, physical or mental handicap, or other 
infirmity, may be employed on light work at a wage below the mini- 
mum 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 with the Code Authority a list of all such persons employed by 
him, showing the wages paid to and the maximum hours of work 
for such employee. 



Artict.k Y — Genkkai. Laror PR0^^SI0xs 

Section 1. Child Labor. — No person under eighten (18) years of 
age shall be employed in tlic Industry, except in clerical, office, sales, 
service, technical and engineering departments, and no person under 
sixteen (IC) years of age shall be employed in any capacity. In 
any state an employer shall be deemed to have complied with this 
provision as to age, if he shall have on file a certificate duly signed 
by the authority of such state empowered to issue employment or 
age certificates or permits, showing that the employee is of the 
required age. 

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

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

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

Section 3. Reclassi-flcation of Employees. — No employer shall 
reclassify employees or duties of occupations for the purpose of 
defeating the purposes or provisions of the Act or of this code. 

Section 4. Standards for Safety and Heaith. — Every employer 
shall provide for the safety and health of his employees at the place 
and during the hours of their employment. Standards of safety 
and health for each division of the Industry shall be submitted to the 
Administrator by the Code Authority within three (3) months after 
approval of this code. 

Section 5. State Laws. — No provision in this code shall supersede 
any state or Federal law which imposes on employers more stringent 
•requirements as to age of employees, wages, hours of work, or as to 
safety, health, sanitary or general working conditions, or insurance 
or fire protection, than arc imposed by this code. 

Section G. Posting. — All employers shall post and keep posted 
complete copies of this code and all amendments thereto in con- 
spicuous places accessible to employees, and shall comply with all 
rules and regulations relative to posting which may from time to 
time be prescribed by the Administrator. 

Section T. Comjyany Toions and Stores. — Employees other than 
maintenance or supervisory men, or those necessary to protect prop- 
erty, shall not bo required as a condition of employment to live in 
houses rented from or specified by the employer. No employee shall 
be required, as a condition of employment, to trade at a store owned 
or specified by an employer. 

Section 8. Dismissal for Complaint. — ^No employer shall dismiss 
or demote any employee for making a complaint or giving evidence 
with resxDcct to an alleged violation of this code. 



109 

Abticle VI — Organization, Powers and Duties of the Code 

Authority 

Section 1. Organization and C oiistiiution. — A Code Authority to 
administer this code is hereby constituted, and shall consist of seven 
(7) voting members who shall be selected by and who may be mem- 
bers of the Executive Committee of the Association, and one (1) 
other voting member who shall be a Member of Industry and shall 
be selected by the Members of Industry who are not members of the 
Association. The selection of all members to the Code Authority shall 
be by a fair and equitable method of election to be approved by the 
Administrator. Iii the event that the selection of the Association's 
non-member representative on the Code Authority is not made with- 
in thirty (30) days after the effective date of this code such member 
may be selected by the Administrator. 

Section 2. In addition to the above membership there may be 
not more than three (3) members, without vote, and without com- 
pensation from the Industry, appointed by the Administrator to 
serve for such terms as he may specify. 

Section 3. Each trade or industrial association directly or in- 
directly participating in the selection or activities of the Code Au- 
thority shall, (1) impose no inequitable restrictions on membership, 
and (2) submit to the Administrator true copies of its Articles ox 
Association, By-Laws, Rules and Regulations and any amendments 
when made thereto, together with such other information as to mem- 
bership, organization and activities as the Administrator may deem 
necessary to effectuate the purposes of the Act. 

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

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 m^anner to any- 
one for any act of any other member, ofiioer, agent or employee of 
the Code Authority; nor shall an}^ member of the Code Authorityj 
exercising reason^le diligence in the conduct of his duties here- 
under, be liable to anyone for any action or omission to act under 
this code, except for his own wilful misfeasance or nonfeasance. 

Section 6. Powers and Duties. — Subject to such rules and regu- 
lations as may be issued by the Administrator and to the extent 
permitted by the Act, the Code Authority shall have the following 
further powers and duties. 

(a) To make investigations as to the functioning and observance 
of any provisions of this code at its own instance or upon complaint 
of any person affected and to report thereon to the Administrator. 

(b) 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. 



110 

(c) To nrlopt Bj^-Laws and liulcs and Ro^ilations for its pro- 
cedure and for the administration of this rode. The Code Authority 
shall promptly furnish to the Administrator for his approval true 
copies of the By-Laws, Rules and Regulations adopted pursuant to 
this paragraph. 

(d) To obtain from Members of the Industry such statistical in- 
formation and rc]wrts as are required for the administration of this 
code and to provide for submission by members of such statistical 
information and reports as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the Act, which informa- 
tion and reports shall be submitted by members to such Federal 
and/or state agencies as the Administrator may designate; provided, 
that nothing in this code shall relieve any Member of the Industry 
of any existing obligations to furnish reports to atiy government 
agency. No individual reports submitted to the Administrator 
and/or such government agencies as the Administrator may desig- 
nate, shall be disclosed to any other Member of the Industry or any 
other partj'^ except such government 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 Au- 
thority of its duties or responsibilities under this code and that such 
trade associations and agencies shall at all times be subject to and 
comply with the provisions hereof. 

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

(g) To recommend to the Administrator such further trade prac- 
tice provisions to govern Members of the Industry in their relations 
with each other or with other Industries, and measures for indus- 
trial planning, including calling of meetings of Members of the 
Industry to consider control of production through voluntary agree- 
ment, stabilization of employment and conservation of natural re- 
sources, as the Code Authority shall consider to be for the best 
interests of the Industry, and to recommend to the Administrator 
such measures as shall have been voluntarily agreed upon, such 
recommendations, upon approval by the Administrator after such 
notice and hearing as he may prescribe, to have the same effect as 
other provisions of this code. 

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

(1) To incur such reasonable oblif^ations as arc 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 code : 

(2) To submit to the Administrator for his approval subject to 
such notice and ojjportunity 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 



Ill 

to support such budget shall be contribut.ed by Members of the 
Industry : 

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

Section 8. 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 (unless duly ex- 
empted from making such contributions) 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 
Authoritj^ 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, 

(a) If, after such budget and basis of contribution shall have been 
approved by the Administrator in accordance with such regulations 
as the Administrator heretofore has or hereafter shall prescribe 
with respect thereto, any Member of the Industr}^ shall fail to pay 
his or its contribution so determined within thirty (30) days after 
such members shall have received notice thereof as prescribed by said 
regulations, such failure so to pay such contribution shall be a viola- 
tion of this code upon and after appropriate certification of such 
failure by the Code Authority to the Administrator, unless said 
member is duly exempted by his action, in accordance with the said 
regulations. 

Section 9. 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 
which the Administrator shall have so approved. 

Section 10. If the Administrator shall cletermine that any action 
of the Code Authority or any agency thereof may be unfair or unjust 
or contrary to the public interest, the Administrator may require 
that such action be suspended to afford an opportunity for investiga- 
tion of the merits of such action and further consideration by such 
Code Authority or agency pending final action which shall not be 
effective unless the Administrator approves, or unless he shall fail 
to disapprove after thirty (30) days notice to him of intention to 
proceed with such action in its original or modified form. 

Section 11. When the Administrator determines upon the petition 
of the Code Authority, or otherwise, that an emergency exists in 
this Industry because of destructive price cutting which is such as 
to render ineffective or seriously endangers the maintenance of the 
provisions of this code, the Administrator may cause to be determined, 
after investigation of costs by the Code Authority through an im- 
partial agency, the minimum price for any product of this Industry 



112 

neotssary to initi<2:;ate the conditions constituting^ such emergency and 
to effectuate the purposes of the Act, and below which price such 
product of the Industry shall not be sold. Such determination shall 
be subject to such notice and hearing as the Administrator may 
require. From time to time the Code Authority, upon its own initia- 
tive, or upon the request of any interested party, may recommend 
that the determination be reviewed, or the Administrator may cause 
euch determination to be reviewed and appropriate action taken. 

Article VII — Trade Practice Rules 

Section 1. The following trade practices are declared to constitute 
imfair methods of competition between Members of the Industry, 
and no Member of the Industry shall use or engage in any of them, 
either directly or indirectly, through any officer, agent or employee. 
Engaging in any one or more of these or any further trade practice 
provisions which hereafter may be established on recommendation 
by the Code Authority, approved by the Administrator, after such 
hearings as he may prescribe, shall be deemed a violation of this 
code. 

(a) Secretly paying or allowing rebates, refunds, commissions, 
credits, unearned discounts, excess allowances, special services or 
privileges, whether in the form of money or otherwise, to certain 
purchasers which are not extended to all purchasers under similar 
circumstances for the purpose of influencing a sale. 

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

(c) Imitating or simulating any design, style, mark or brand 
owned or used with the consent of the owner by any other Member 
of the Industry. 

(d) Using or substituting any material different in quality from 
that specified by the purchaser of any product, or using or substi- 
tuting any material or any method of manufacture not in accord 
with any applicable law, rule or regulation of any governmental 
authority. 

(e) Selling or offering to sell Industry Products to a purchaser 
not under term-contract for such Industry Products at the term- 
contract price for such Industry Products, or less. 

(f) Cancelling in whole or in part, or permitting the cancella- 
tion in whole or in part of, any contract of sale of any product, 
except for a fair consideration or just cause, or secretly paying or 
allowing to any purchaser for the purpose of influencmg the sale 
of any product, any rebate, commission, credit, discount, adjustment 
or similar concession, or permitting the splitting of their commis- 
sions by sales agents with, or the allowing of any part of their com- 
missions by sales agents to, any purchaser in connection with the 
sale of any of the Industry Products. 

(g) Disseminating, publishing or circulating any false or mis- 
leading information relative to any product or price for any product 
of an^ Member of the Industry, or the credit standing or ability of 



113 

ftny member thereof to perform any work, or manufacture, or pro- 
duce any product, or to the conditions of employment among the 
employees of any member thereof. 

(h) Inducing or in any manner attempting to induce a violation 
of a contract between a Member of Industry and his customer. 

(i) Aiding or abetting any person, firm, association or corpora- 
tion in any unfair practice. 

(j) Making or giving to any purchaser of any product tiny 
guaranty or protection in any form against decline in the price of 
such product. This provision shall not apply to contracts entered 
into prior to the effective date of this code. 

(k) Making an}- false statement in an invoice and especially 
stating in the invoice of any product as the date thereof a date 
lat«r than tlie date of the shipment of such product, or including 
in any invoice any product shipped on a date earlier than the date 
of such invoice. 

(1) Making any sale or contract of sale of any Industry Product 
under any description vrhich does not fully describe such product 
in the terms customarily used in the Industry. 

(m) Failing to add to the prices charged for products of the 
Industry, whenever such addition may be lawful, any Federal tax 
assessed against the production or sale of such products, or rebat- 
ing such charge. This provision shall not apply to contracts entered 
into prior to the effective date of this code. 

(n) Giving or permittmg to be given, or directly offering to give 
anything of value for the purpose of influencing or rewarding the 
action of any employee, agent or representative of another in rela- 
tion to the business of the employer of such employee, the principal 
of such agent or the represented party, without the knowledge of 
such emploj^er, principal or party. This commercial bribery pro- 
vision shall not be construed to prohibit free and general distribu- 
tion of articles commonly used for advertising except so far as such 
articles are actually used for commercial bribery as hereinabove 
defined. 

(o) Deviating from the published and previously established 
specifications, for the purpose of influencing a customer or prospec- 
tive customer. 

(p) Alloying of any Industry Product of previously est>ablished 
specifications in any manner for the j)urpose of evading the provi- 
sions of this code. 

(q) Requiring that the purchase or lease of any products or 
equipment be a prerequisite to the purchase or lease of any other 
products or equipment. 

Article VIII — New Capacity- 

In the event that the Code Authority shall determine that then 
existing capacities and capacities then under construction for the 
production of products of the Industry are in excess of the capacities 
required to meet the demand for such products, and the Administra- 
tor shall approve such determination upon the recommendation of 
the Code Authority, then such capacities shall not bo increased 
(except for the supplying of foreign demand) until such time as 



114 

the Code Authority and the Administrator, or the Administrator 
acting on his own behalf, shall determine that the demand for such 
products cannot be met by the fullest possible use of such capacities. 
This provision, however, shall not apply in the production of 
Calcium Molybdate or Ferromolybdenum, or other Molybdenum 
products in which Molybdenum represents the chief constituent of 
economic value, or Ferro Phosphorus when such Ferro Phosphorus 
is incidentally and necessarily produced as a by-product in the 
manufacture of Phosphorus or Phosphoric Acid. 

Article IX — Export Trade 

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

Article X — Modification 

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

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

Section 3. If the Code Authority shall desire to propose an 
amendment, after having approved the same, it shall submit the 
same to the Members of the Industry who shall thereupon vote upon 
uaid proposed amendment either at a special meeting called for 
that purpose or by mail ballot, at the discretion of the Code 
Authority. In such voting there shall be tAvo separate ballots on 
Each amendment so proposed : 

(a) Each Member of the Industry voting shall be entitled to cast 
one (1) vote upon said amendment, which vote shall be known as 
the " Member Vote ". 

(b) Each member of the Industry voting upon said proposed 
amendment shall be entitled to cast one (1) vote for each rated one 
thousand (1,000) horsepower electric furnace capacity now installed 
or now under construction in the Industry owned by such member, 
or the equivalent thereof fairly computed of other type of produc- 
tion capacity for Industry Products. This vote shall be known as 
the " Capacity Vote." 

In order to receive approval of the Industry, any such proposed 
amendment shall receive the affirmative vote of : 

(a) At least 75% of the Member Votes cast and in addition 
thereto, 

(b) At least 76% of the Capacity Votes cast, both separately con- 
gidered. If such proposed amendment shall be approved in the 
inanner above set lorth, the Code Authority shall submit such pro- 



115 

posed amendment to the Administrator. Such amendment shall 
become effective as a part of this code upon approval by the Adraivi- 
istrator after such notice and hearing as he may prescribe. 

Article XI — Monopolies 

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

Article XII — Effective Date 

This code shall become effective beginning ten (10) days after ita 
approval by the President. 



Approved Code No. 515. 
Registry No. 1201-08. 



o 



Approved Code No. 516 
CODE OF FAIR COMPETITION 

FOR THE 

FLAVORING PRODUCTS INDUSTRY 
As Approved on September 7, 1934 



OKDER 



AppRO\aNG Code of Fair Competition for the Flavoring Products 

Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Kecovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Flavoring Products Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and di- 
rected to the President : 

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

Hugh S. Johnson, 
AdTninistrator for iTidustHal Recoverif. 

Approval recommended : 
Armin W. Riley, 

Division Administrator. 

Washington, D.C, 

September 7, 193Ii.. 

84628° 1181-20 34 — — 1 (117) 



KEPOllT TO THE PRESIDENT 

The Pkesidext, 

Tlic White House. 
Sir: This is a reijort on the Code of Fair Competition for the 
Flavorinf^ Products Industry and on the Public Hearing held in 
Washington, D.C. on March 21, 1934, in accoi-dance with the provi- 
sions of the National Industrial Recovery Act. 

GENEItAL 

The Code for the Flavoring Products Industr3' Avill mean, it is 
estimated, a spread in employment of fourteen and one-half per cent 
(14V2%), of which nine per cent {^%) has already occurred under 
the President's Reemployment Agreement, and in wages approxi- 
mately twenty-three per cent (23%), of whicli three per cent (3%) 
has already occurred under the President's Reemployment Agree- 
ment. 

In 1929 the average hours worked in the North were reported as 
forty-seven (47) and in the South fifty-two (52). In June, 1933, 
the average hours worked in the North were reported as forty-four 
(44) and in the South fifty (50). Approximately seventy-two per 
cent (72%) of the total factory employees were workino- beyond the 
forty (40) hour per week maximum as provided in the Code in June, 
1933. As this number is reduced to forty (40) hours by the Code, 
the spread of employment will be approximately fourteen and one- 
half per cent (14i/2%). From the information submitted it would 
appear that office employees were receiving relatively high wages, as 
only about twenty ])er cent (20%) of such employees received an 
average of the low level of twelve dollars ($12.00) })er week. The 
Code will mean a substantial increase to this class of employee. The 
minimum wage i)rovisi()ns of this Code will mean a greater increase 
to those emi^loyees in the South than in the North. 

The volume of sales in this Industry, according to (juestionnaires, 
shows a total sales in 1929 of $24,G43;421.00; in 1932 $16,158,176.00, 
and in 1933 $14,045,581.00, which shows a steady decline in the annual 
volume of sales for this Industry. 

The employment in the Flavoring Products Industry is estimated 
at approxiuiately 2,700 employees. 

The three Associations s])onsoring this Code are as follows: 

Flavoring Extract Manufacturers Association of the United 
States. 

National Association of Manufacturers of Fruit and Flavor- 
ing Syrups. 

National Manufacturers of Soda Water Flavors. 

and are trade associations truly representative of the Industry, and 
impose no inequitable restrictions on membership. 

(118) 



119 

HOURS 

The Code for the Flavoring Products Industry provides for a 
maximum work Aveek of forty (40) hours, with the limitation of 
eight (8) hours in any twenty-four (24) hour period. There are the 
usual exceptions, complete or partial. 

Watchmen shall not be permitted to work in excess of fifty-six 
(56) hours in any vv^eek. Chauffeurs, dcliver3'mcn and route delivery 
salesmen shall not be permitted to work in excess of forty-eight (48) 
hours in any week. Engineers and firemen shall not be permitted 
to work in excess of forty-four (44) hours per week nor more than 
eight (8) hours in any tw^enty-four (24) hour period. Cooks and 
cooks' helpers shall not be permitted to work in excess of forty-four 
(44) hours in any week. Persons employed in executive, managerial 
or su}>ervisory capacities or pharmacists, chemists, refrigeration en- 
gineers or others employed in a technical capacity are not subject to 
the hourly limitations provided in this Code who regularly receive 
not less than thirty-five ($35) dollars per week, and outside sales- 
men or route delivery sales and office sales emiDloyees, jDrovided they 
regularly receive not less than thirty-five dollars ($35.00) per week 
in cities of 100,000 population or over or not less than thirty dollars 
($30.00) per week in other places. 

No employee shall be permitted to work more than six (6) days 
in any seven (7) day period. Any person working for a member of 
the Industry other than the wife or husband of said member shall be 
considered an employee as defined in the Code. Partners and stock- 
holders of members of the Industry and others having proprietary 
interest in members of the Industry shall not, if employed thereby, be 
exempt from hours, wages and general labor provisions of this Code. 

During periods of peak production, inventory periods, financial 
closing periods and other unusual conxiitions beyond the control of 
the employer, employees are permitted to work six (6) hours weekly 
in excess of the maximum hours permitted in this Code not to ex- 
ceed (16) weeks in any calendar year, and shall be compensated for 
such excess of the maximum hours by at least one and one-third (IVs) 
times the regular hourly rate for hours worked in excess of forty- 
four (44) hours per week. Employers shall report to the Code Au- 
thority or to the Administrator as the case may be all hours worked 
in excess of the maximum hours permitted in this Code. Office 
workers wdio regularly receive not less than thirty-five dollars 
($35.00) per week or over are not subject to overtime payment. Em- 
ployees on emergency repair or emergency maintenance work involv- 
ing mechanical breakdowns or protection of life and property may 
work in excess of maximum hours permitted in this Code, provided 
that any employee so working in excess of the maximum hours shall 
be compensated for the excess hours by at least time and one-third 
his regular hourly rate. 

■\VAGES 

No person employed in clerical, accounting or other office work 
shall be paid less than sixteen dollars ($16.00) per week in cities of 
over 500,000 population or the immediate trade area thereof ; fifteen 
dollars ($15.00) per week in cities between 250,000 and 500,000 pop- 



120 

ulation or the immpdiato trarle area thereof, fourteen dollars ($14.00) 
per week in other phices, exce])t that oflice boys and messengers may 
be paid at a rat^ below the above minima, provided, however, that 
they shall not be paid at a rate which is more than two dollars 
($2.00) below the minimum rate otherwise applica])le. Where more 
than one employee is classified and paid as an office Ijoy or messenger, 
not more than ten per cent (10%) of the total number of office em- 
ployees for any one employer may be so classified and paid. 

No male emplo3^ee other than those covered in Sections 1 and 5 of 
Article IV shall be i^aid at a rate of less than forty cents (40^,) per 
hour in the North, or thirty-five cents (35^*) per hour in the South. 
No female employee other than those covered in Section 1 of Article 
IV shall be paid at a rate of less than thirty-two and one-half cents 
(321^0) per hour in the North or twenty-seven and one-half cents 
(271/^0) per hour in the South. No watchman shall be paid at a 
rate of less than eighteen dollars ($18.00) per week of fifty-six (56) 
hours. Time and one-third the normal rate shall be paid for all time 
worked except by watchmen and by persons employed in an executive, 
jnanagerial or supervisory capacity, or by pharmacists, chemists, 
refrigeration engineers or others employed in a technical capacity 
who regularly receive not less than thirty-five dollars ($35.00) per 
week, route delivery salesmen and office sales employees, provided 
they receive not less than thirty-five dollars ($35.00) per week in 
cities of 100,000 population or over, and not less than thirty dollars 
($30.00) per week in other places on Sundays, Christmas Day, 
Thanksgiving Day, Labor Day, July Fourth, New Year's Day and 
such other holidays as may be proclaimed by the President of the 
United States. 

There is the usual clause governing the reduction of weekly earn- 
ings and hourly rates specifically providing that in no case shall 
hourly wage rates be reduced and for equitable adjustment of hourly 
wage rates upward. 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 fortli 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 supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), and by increasing the consumption of industrial 
and agricultural i)roducts tlirough increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and l)y otherwise rehabilitating industry. 



121 

(b) Said Industry nornially employs not more than 50,000 
employeos ; 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- 
ciations are trade associations truly representative of the aforesaid 
Industry; and that said associations impose no inequitable restric- 
tions on admission to membership therein. 

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

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

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

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

Hugh S. Johnson, 

A dininistrator. 
September 7, 1934. 



CODE OF FAIR COMPETITION FOR THE FLAVORING 
PRODUCTS INDUSTRY 

AirncLK I — I-*uRrosES 

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 Flavoring Products Industry, and shall 
be the standards of fair competition for such industry and shall be 
binding upon every member thereof. 

Articlt^ II — Dkfixitions 

Section 1. The term " President " as used herein shall mean the 
President of the United States. 

Section 2. The terms "Act " and "Administrator " as used herein 
shall mean respectively Title I of the National Industrial Recovery 
Act, and the Administrator for Industrial Recovery. 

Section 3. The term " Flavoring Products Industry " or " In- 
dustry " as used herein is defined to mean the manufacture, process- 
ing, and sale by the manufacturer of flavoring products. 

Section 4. " Flavoring Products " as used herein are defined to 
mean those products made from the fruit, berry, bean, or other part 
of the plant, together with products synthetically made in simula- 
tion thereof, and primarily intended for use for flavoring in the 
preparation of food or drug products and commonly classed in the 
trade as : 

(a) Extracts, flavors, concentrates, finished or fountain syrups 
(except syrups manufactured principally for use in bottling soft 
drinks by the manufactiu'er thereof, or under his supervision or 
control by contract or otherwise), soda fountain or ice cream fruits, 
flavoring powders, flavoring emulsions, flavoring creams, and 
unfermented fruit juices; and 

(b) Those products primarily intended for use for coloring in 
food and/or drug products and commonly termed in the trade as 
secomlary, liquid, i)aste and vegetable food colors. 

Section 5. The term " Member of the Industry " as used herein 
includes, but without limitation, any individual, partnership, asso- 
ciation, cor])oration, or any other form of enterprise engaged in the 
industry, whether as an employer or on his or its own behalf. 

Section G. The term " Code Authority " as used hei-ein shall mean 
the agency to administer this Code as provided for in Article VII. 

Section 7. The term " State " as used herein includes any State 
or Territory of the United States and the District of Columbia. 

Section 8. The term " En)ployee " as used herein includes any and 
all jiersons engage d in the industry, however compensated, except 
a member of the industry. 

(122) 



123 

Section 9. The term " Employer " as used herein includes any 
one by whom any such employee is compensated or employed. 

Section 10. The term " Watchman " as used herein shall mean any 
employee whose principal function is watching and guarding the 
premises of an establishment of a member of the industry. 

Section 11. The term " Outside Salesman " as used herein means 
any emplo3'ee who devotes at least eighty per cent (807o) of his 
working hours to selling outside of the establishment and who does 
not ordinarily deliver merchandise. 

Section 12. The term "• Trade Buyer '" as used herein shall mean 
any commercial buyer as distinguished from an ultimate consumer 
buyer. 

Section 13. The term " Route Delivery Salesman " as used herein 
shall mean any salesman who regularly delivers the merchandise 
which he sells at the time of sale. 

Section 14. Population, for the purpose of this Code, shall be 
determined by the latest Federal Census. 

Section 15. The South is defined as the following States: Virginia, 
North Carolina, South Carolina, Georgia, Florida, Kentucky, Ten- 
nessee, Alabama, Mississippi, Louisiana, Arkansas, Texas, and 
Oklahoma. 

Article III — Maximum Hotjes 

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

(a) The provisions of this Section shall not apply to watchmen; 
provided that they shall not be permitted to work in excess of fifty- 
six (56) hours in any week. 

(b) The provisions of this Section shall not apply to chauffeurs, 
deliverymen and route delivery salesmen; provided that they shall 
not be permitted to work in excess of forty-eight (48) hours in any 
week. 

(c) The provisions of this Section shall not apply to engineers and 
firemen ; provided that they shall not be permitted to work in excess 
of forty-four (44) hours in any week nor more than eight (8) hours 
in any twenty-four (24) hour period. 

(d) The provisions of this Section shall not apply to persons em- 
ployed as cooks and cooks' helpers ; provided that they shall not be 
permitted to work in excess of forty-four (44) hours in any week or 
nine (9) hours in any twenty-four (24) hour period. 

(e) The provisions of this Section shall not apply to persons em- 
ployed in an executive, managerial or supervisory capacity or to 
pharmacists, chemists, refrigeration engineers or others employed in 
a technical capacity who regularly receive not less than thirty-five 
dollars ($35.00) per week, and outside salesmen; nor to route delivery 
salesmen and office sales employees provided they regidarly receive 
not less than thirty-five dollars ($35.00) per week in cities of 100,000 
population, or over, or not less than thirty dollars ($30.00) per week 
in other places. 

Section 2. No employee shall be permitted to work more than six 
(6) days in any seven (7) day period. 

84628° 1181-20 34 2 



124 

Section 3. Employment of Relatives. Any person -working for 
a member of the industry, other than the wife or husband of said 
member, shall bo considered an " employee " as herein defined. Part- 
ners and stockholders of members or the industr}' and others having 
proprietary intei-ests in members of the industry shall not, if em- 
l^loyed thereby, be exempt from hour, wage, and general labor pro- 
visions of this Code. 

Section 4. (a) In cases of peak production, inventoi-y periods, 
financial closing periods or unusual conditions lx>yond the control of 
the employer, employees may be permitted to work not more than 
six (6) hours weekly in excess of the maximum hours permitted in 
Section 1 of this Article for a period not to exceed sixteen (IG) 
weeks in any calendar j^ear, provided that an employee working in 
excess of the maximum hours permitted in Section 1 of this Article 
shall be paid at least one and one-third (IV^) times the regular 
hourly rate for hours worked in excess of forty-four (44) hours per 
Aveek. Employers shall report to the Code Authority or to the Ad- 
ministrator, as the case may be, all hours worked in excess of the 
maximum hours permitted in Section 1 of this Article. Office work- 
ers who regularly receive not less than thirty-five dollars ($35.00) 
per week or over are not subject to overtime payment. 

(b) Emploj'Ces on emergency repair or emergency maintenance 
work involving mechanical breakdowns or protection of life and 
pro])erty 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 (l^^) times his 
regular hourly i-ate. 

AltTICLE IV W.VGES 

MINIMtTlM WAGES 

Section 1. No person emjiloyed in clerical, accounting or other 
office work shall be paid less than at the following rates: Sixteen 
dollars ($16.00) per week in cities of over 500,000 population, or in 
the immediate trade area thereof; fifteen dollars ($15.00) per week 
in cities between 250,000 and 500,000 population, or in the inunediatc 
trade area thereof; fourteen dollars ($14.00) per week in other 
places; except that office boys and messengers may be paid at a rat^e 
below the above minima, ])rovided, however, that they shall not 
be ])aid at a rat<^ which is more than two dollars ($2.00) below the 
minimum rate otherwise applicable. When more than one employee 
is classified and paid as an office boy or mes.senger, not more than 
five per cent (5%) of the total number of office employees of any 
one employer may be so classified and \)^u\. 

Section 2. No male employee, other than tliose covered in Sec- 
tions 1 and 5 of this Article, shall be paid at a rate of less than forty 
cents (40^*) per hour in the North, or thirty-five cents (35^) per 
holir in the South. 

Section 3. No female employee other than those covered in Section 
1 of this Article, shall be paid at a rate of less than thirty-two and 
one-half cents (321/20) per honr in the North or twenty-seven and 
one-half cents (27^/)0) per hour in the South. 



125 

Section 4. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as such 
male employees. However, if male employees perform work cus- 
tomarily done by female employees only during hours when female 
labor is prohibited by law, it shall not be required that female em- 
ployees doing such work at other times shall be paid at the same 
rate as such male employees. 

Section 5. No watchman shall be paid at a rate of less than eight- 
een dollars ($18.00) per week of fifty-six (56) hours. 

Section 6. This Article establishes a minimum rate of pay which 
shall apply, irrespective of whether an employee is actually comjjen- 
sated on a time rate, piecework, or other basis. 

Section 7. Not less than time and one-third shall be paid for all 
time worked (except b}'^ watchmen and by persons employed in an 
executive, managerial or supervisory capacity or by pharmacists, 
chemists, refrigeration engineers or others employed in a technical 
capacity who regularly receive not less than thirty-five dollars 
($35.00) per week, route delivery salesmen and office sales emplo3'ees 
provided they regularly receive not less than thirty-five dollars 
($35.00) per week in cities of 100,000 population or over and not 
less than thirty dollars ($30.00) per week in other places) on Sun- 
days and the following holidaj^s : Christmas Day, Thanksgiving Day, 
Labor Day, July Fourth, New Year's Day, and such other holidays 
as may be proclaimed by the President of the United States. 

Section 8. No employee whose normal full time weekly hours, 
after the approval of this Code, shall be sixteen and two-thirds per 
cent (16%%) or less, below his normal full time weekly hours for 
the four (4) months ending Ma^'' 1, 1933, shall have his full time 
weekly earnings reduced below the average full time weekly earnings 
of such employee during such four (4) months' period. In case 
the reduction in hours, as so measured, is more than sixteen and 
two-thirds per cent (16%%), employers shall make an equitable 
readjustment of hourly wage rates upward, provided that in each 
such case hourly wage rates shall be increased by at least twenty 
per cent (20%). In no case shall hourly wage rates be reduced. 

Section 9. A person whose earning capacity is limited because of 
age, physical or mental handicap, or other infirmity, may be em- 
ployed on light work at a wage below the minimum established by 
this Code, if the employer obtains from the state authority, desig- 
nated by the United States Department of Labor a certificate author- 
izing such person's employment at such wages and for such hours as 
shall be stated in the certificate. Such authority shall be guided by 
the instructions of the United States Department of Labor in issu- 
ing certificates to such persons. Each employer shall file monthly 
with the Code Authority a list of all such persons employed by him, 
showing the wages paid to, and the maximum hours of work for 
such employee. 

Section 10. Wages shall be exempt from fines and rebates and 
from charges and deductions, except charges and deductions for 
contributions voluntarily made by employees to pension, insurance 
or benefit funds, or pension, insurance or benefit funds required by 
law, or deductions for other purposes, except when provision there- 
for is made in a written contract between employer and employee. 



126 

Such contracts must be kopt on file by <^ach employer for at least 
six (6) montlis after the terminution of the contract, and shall be 
opQU to tlie inspection of the Achninistrator or his aj^ent. 

Article V — Generai. Lahor Pro\'i signs 

CHILI) LAIiOH 

Section 1. No person under sLxteen (16) years of age shall be 
employed in the industry. No person under eighteen (18) years 
of age shall be employed at o})erations or occupations which are 
hazardous in nature or dangerous to health. The Code Authority 
shall submit to the Administrator within ninety (90) days after 
the effective date of this Code a list of such operations or occupa- 
tions. In any State any employer shall be deemed to have complied 
with this provision as to age if he shall have on file a certiticat-e 
or permit, dul}' signed by the Authority in such State empowered to 
issue employment or age certificates or permits showing that the 
employee is of the required age. 

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

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

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

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

Section 3. Employei-s shall not change the method of payment 
of employees' compensation or reclassify employees or duties or 
occupations performed by employees or engage in any other sub- 
terfuge, so as to defeat the purposes of the Act or the provisions 
of this Code. 

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

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

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

Section T. All emi)loyers shall post and keep posted copies of 
this Code dealing with hours, wages, and conditions of employment 
in conspicuous places accessible to all employee's. Every member 



127 

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

Section 8. Employers shall make pajanent of all wages due in 
lawful currency or by negotiable checks, payable on demand. Agree- 
ments of hire shall provide that vvages shall be paid at least as often 
as every two weeks, and salaries at least as often as every month. 

Section 9. Every employer shall ])rovide for the safety and health 
of employees during the hours and at the places of their employ- 
ment. Standards for safety and health shall be submitted by the 
Code Authority to the Administrator within three (3) months after 
the effective date of this Code. 

Article VI — Unfair Trade Practices 

Section 1. Quantity Price. — No member of the Industry shall offer 
or make a quantity price unless it is based upon and reasonably 
measured by a substantial difference in the quantity sold and 
delivered. 

Section 2. Vneamed Service Paym-ents. — No member of the in- 
dustry shall pay a trade buyer for a special advertising or other 
distribution service by such buyer; 

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

(b) Unless such service is rendered and such payment is reason- 
able and not excessive in amount ; and 

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

(d) Unless such payment is equally available for the same serv- 
ice to all competitive buyers in the same competitive market; and 

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

Section 3. C ojnmercial Bribery. — No member of the industry shall 
give, permit to be given, or directly or indirectly offer to give, any- 
thing of value for the purpose of influencing or rewarding the 
action of any employee, agent, or representative of another in 
relation to the business of the employer of such employee, the prin- 
cipal of such agent or the represented party, without the knowledge 
of such employer, principal, or party. This provision shall not 
be constructed 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 4. Cash Disccnints. — No member of the industry shall al- 
low a cash discount which is not earned in accordance with the 
terms of cash discount as set out in the invoice. 

Section 5. (a) False Billing. — No member of the industry shall 
withhold from, or insert in any invoice, any statement that makes it 
a false record, wholly or in part, of the transaction represented on 
the face thereof. 



128 

(b) False Price Stntements. — No member of tlio industry shall 
quote a fictitious price; or make any price statement or price repre- 
sentation which is false or fraudulent. 

Section 6. False Statement about a Covipetitor. — No member of 
the industry shall wilfully induce or attempt to induce a breach of 
existing contracts between competitors and their customers by any 
false or deceptive means or interfere with or ob.-:truct the perform- 
ance of any such contractual duties or services by any such means, 
with the purpose or effect of hampering, injuring, or embarrassing 
competitors in their business. 

Section 7. Destructive Price Cutting. — (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 cus- 
tomers 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 impairment of code wages and working conditions. The Code 
Authority shall within five (5) days afford an opportunity to the 
member of the industry 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 N.Il.A. 
which shall render a report and recommendation thereon to the Ad- 
ministrator. 

(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. 

Section 8. Emergency Provisions. — (a) If the Administrator, 
after investigation shall at anj^ 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 wliich tend to defeat the purposes of the Act; and 
(2) that the determination of the stated minimum price for a speci- 
fied product Avithin the industry for a limited period is necessary to 
mitigate the conditions constituting such emergency and to effectuate 
the purposes of the Act, the Code Authority may cause an impartial 
agency to investigate costs and to recommend to the Administrator a 
determination of the stated minimum price of the product affected 
by the emergency and thereupon the Administrator may proceed to 
determine such stated minimum price. 

(b) When the Administrator shall have determined such stated 
minimum price for a specified product for a stated period, which 
price shall be reasonably calculated to mitigate the conditions of 
such emergency and to effectuate the purposes of the National Indus- 
trial Recovery Act, he shall publish such price. Thereafter, during 
such stated period, no member of the industry shall sell such specified 
products at a net realized price below said stated minimum price 
and any such sale shall be deemed destructive price cutting. From 
time to time, the Code Authority may recommend review or recon- 



129 

sideration or the Administrator may cause any determinations here- 
under to be reviewed or reconsidered and appropriate action taken. 

Section 9. Compulsory Purchase. — No member of the industry 
shall compel the purchase of one product in 'order to purchase or 
obtain another. 

Section 10. Unfair Substitution. — No member of the industry shall 
substitute without due notice and consent of a trade buyer another 
product for that ordered from him. 

Section 11. Inaccurate Advertising. — No member of the industry 
shall publish advertising (whether printed, radio, display, or of any 
other nature) which is false, misleading or inaccurate in any mate- 
rial particular, nor shall any member in any way misrepresent any 
goods (including but without limitation its use, trade mark, grade, 
quality, quantity, origin, size, substance, character, nature, finish, ma- 
terial content or preparation) or credit terms, values, policies, serv- 
ices, or the nature or form of the business conducted. 

Section 12. Prizes and Preniiums. — No member of the industry 
shall offer or give any prizes, premiums, or gifts in pursuance of a 
jDlan which involves fraud, deception or lottery. 

Section 13. Floor Stock Rebates. — No member of the industry 
shall allow a trade buyer any rebate on floor stocks in the event of a 
decline in seller's price of flavoring products, excepting on products 
shipped within ten (10) days of such decline in price, or on products 
in transit at the time of such decline ; and provided further, that if 
any such rebate on floor stocks is granted to one trade buyer, a like 
rebate shall be available to all trade buyers. 

Article VII — Administration 

OKGANIZATION AND CONSTITUTION 

There are three natural divisions into which this industry can be 
divided as follows: (1) household and bulk flavoring extracts divi- 
sion; (2) fruit and flavoring syrups division; (3) soda water flavor- 
ing division. 

Section 1. A Code Authoritj' is hereby established consisting of 
six (6) persons to be selected in the following manner: 

(a) Two members to be elected by the Flavoring Extracts Manu- 
facturers' Association of the United States from the membership of 
said association to represent the Household and Bulk Flavoring Ex- 
tracts Division of the industry; 

(b) Two members to be elected by the National Association of 
INIanufacturers of Fruit and Flavoring Syrups from the member- 
ship of said association to represent the Fruit and Flavoring Syrups 
Division of the industry; 

(c) One member to be elected by the National Manufacturers of 
Soda Water Flavors from the membership of said association to 
represent the Soda Water Flavoring Division of the industry; 

(d) One member shall be appointed by the Administrator to repre- 
sent those members of the industry who are not members of any of 
the associations. 

(e) Each member of the industry shall be classified as a member 
of the division of the industry in which he manufactures one or more 



130 

products; and each member of the industry who manufactures any 
(if the products of the in(hi.stry shall be classified in one of the natural 
divisions. If anv mpniher of the industry is a member of more than 
one of the associations, he shall be entitled to vote for members of 
the Code Authority who represent only one division in which he 
might be classified, the selection as to which division in which he 
desires to vote to be made by such member at least ten (10) days 
before the date of any election ; otherwise, such member to be en- 
titled to vote in the same division in which he was classified for the 
previous year. 

(f ) The members of the Code Authority shall hold office for one 
year or until their res])ective successors are elected. 

(g) Any vacancies occurring in the membership of the Code Au- 
thority shall be filled by election or appointment as provided herein 
for the election or appointment of the original members. 

(h) In the selection of the elective members of the Code Authority, 
a vote cast by mail or by proxy shall have the same force and effect 
as a vote cast in person. 

(i) Five members of the Code Authority shall constitute a quorum 
thereof. Any action taken by the Code Authority regarding modi- 
fications or amendments to this Code shall be by an affirmative vote 
of at least five members present or represented by proxy. 

Section 2. In addition to membership as above provided, there 
may be one (1) to three (3) members without vote and without ex- 
pense to the industry to be appointed by the Administrator, to serve 
on the Code Authority for such term as he may specify. The repre- 
sentatives who may be appointed by the Administrator, together 
with the Administrator, shall be given notice of and shall be per- 
mitted to sit at all meetings of the Code Authority. 

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

Section 4. In order that the Code Authority shall at all times 
bo 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 method of .selection of the Code Authority. 

Section 5. Nothing cont^ained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent, or employee 
of the Code Authority. Nor shall any member of the Code Author- 
ity, exercising reasonable diligence in the conduct of his duties here- 
under, be liable to anyone for any action or omission to act under 
this Code, except for his own wilful misfeasance or malfeasance. 

Section G. If the Administrator shall determine that any action 
of a code authority or any agency thereof may be unfair or unjust 



131 

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

Section 7. (a) Recjianal Cade Authority. — The Code Authority, 
subject to the approval of the Administrator, shall supervise the set- 
ting up of regional code authorities in any natural division of the 
industry for the purpose of assisting in the administration of this 
Code within State and local trading areas. 

(b) In the event any local trade association desires to assist in the 
administration of this Code in any State or local trade area, said 
association may, upon application to the Code Authority, and sub- 
ject to the approval of the Administrator, be authorized to supervise 
the election of the Regional Code Authority, and said local trade 
association may have its own membership represented on the Re- 
gional Code Authority in addition to non-association members of the 
industry, the proportion of the non-association and association mem- 
bership to be subject to the approval of the Administrator. 

Section 8. Regional Code Authorities may prepare such addi- 
tional trade practice provisions and such other rules and regulations 
as may be further necessary from time to time, which, upon recom- 
mendation of the Code Authority to the Administrator and approval 
thereof by the Administrator after such notice and hearing as he 
may prescribe, shall have the same force and effect as if originally 
included in the Code for such regional natural division subdivision. 

Section 9. The Code Authority may delegate to such regional 
code authorities as may be established any of its activities provided 
for herein for the better administration of this Code provided, 
however, that nothing herein shall relieve the Code Authority of its 
duties or responsibilities under this Code. 

Section 10. Powers and Z>«.f/^6\— Subject to such rules and regu- 
lations as may be issued by the Administrator, the Code Authority 
shall have the following powers and duties, in addition to those 
authorized by other provisions of this Code. 

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

(b) To adopt by-laws and rules and 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 necessary 
for the purposes recited in Section 3 (a) of the Act to such Fed- 
eral and State agencies as he may designate; provided that nothing 
in this Code shall relieve an}' member of the industry of any existing 
obligations to furnish reports to any Government agencj\ No indi- 
vidual report shall be disclosed to any other member of the industry 
or to any other party except to such governmental agency as may 
be directed by the Administrator. 



132 

(d) To use such trade associations and other agencies as it deems 
pro]:)er for the carryiniz out of any of its activities provided for 
herein, provided that nothin<^ 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 
witii the i)rovisions hereof. 

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

(f ) 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 eltectuate the policy oi 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 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 there- 
for 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 ex- 
penses of itvS administration as hereinabove provided, unless duly 
exempted from making such contribution, shall be entitled to par- 
ticipate in the selection of members of the Code Authority or to re- 
ceive the benefits of any of its voluntary activities or to make use of 
any emblem or insignia of the National Kecovery Administration. 

8. The Code Authority shall neither incur nor pay any obligation 
substantially in excess of the amount thereof as estimated in its ap- 
proved 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. 

(g) To elect a rem-esentative to serve on any conference or ad- 
visory committee wlm-h may be established by the Administrator for 
the entire food and grocery manufacturing industry; and to con- 
sider recommendations formulated by such committee and approved 
by the Administrator for the modification of this Code. 

(h) To appoint a Trade Practice Committee which shall meet 
with the Trade Practice Committees ajipointed under such codes 
as may be related to the industry for the purpose of formulating 



133 

fair trade practices to govern the relationships between employers 
under this code and under such other codes to the end that such fair 
trade practices nia}' be prop)osed to the Administrator as amendments 
to this code and such other codes. 

(i) The Code Authority shall create a committee on safety and 
health which will study and reconnnend to the Administrator within 
six (G) months after the effective date of this Code standards for 
safety and health of employees of the industry, and standards of 
sanitation and cleanliness for all factories and/or business establish- 
ments in the industry. 

(j) In order to assist in making effective the reports from the 
industry and in eliminating unfair competition, the Code Authority 
shall, within one (1) month after the effective date of the Code, 
appoint a connnittee so constituted as to give due consumer and 
governmental representation, to make a study, with a view to the 
establishment of classifications and standards of quality of products 
of the industry, wherever such standards are deemed feasible. The 
findings and recommendations of this committee shall, within six (6) 
months, be submitted to the Administrator, and after such hearings 
as he may designate, and upon approval by him, shall be made a 
part of this Code and be binding upon every member of the industry. 

Section 11, The Code Authority may recommend to the Admin- 
istrator amendments or modifications which shall become part of 
this Code after approval by the Administrator after such notice and 
hearing as he shall prescribe. 

Article VIII — Monopolies 

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

Article IX — Price Increases 

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

Article X — Modification 

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

Section 2. This Code, except as to provisions required by the 
Act, may be modified on the basis of experience or changes in cir- 
cumstances, such modifications to be based upon application by mem- 
bers of the industr}' to the Administrator and such notice and 



134 

hearinp as ho shall specify, and to bpcoine effective on approval of the 

Administrator. 

Akticle XI — Effective Time 

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



Approved Code No. HIG. 
Registry No. 112-10. 



O 



Approved Code No. 517 
CODE OF FAIR COMPETITION 

FOR THE 

RING TRAVELER MANUFACTURING INDUSTRY 

As Approved on September 7, 1934 



ORDER 



Approving the Basic Code as the Code of Fair Competition for the 
Ring Tra\'eler Manufacturing Industry 

An application having been made pursuant to Administrative 
Order No. X-61, dated July 10, 1934, for the approval of the Basic 
Code, as modified and attached to the annexed report as Exhibit 
"A", as the Code of Fair Competition for the Ring Traveler Manu- 
facturing Industry, defined for the purposes of this Order as follows : 

" Industry " means and includes the manufacture and sale of Ring 
spinning and twisting Travelers used for spinning and twisting 
yarns; and it appearing to me that said application is in full com- 
pliance with the provisions of Title I of the National Industrial Re- 
covery Act, and that the annexed report on said Code, containing 
findings with respect thereto, has been made and directed to the 
President i 

NOW, THEREFORE, on behalf of the President of the United 
State, 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 : 

(a) incorporate by reference said annexed report and said Code, 
as attached thereto marked Exhibit "A", 

(b) 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 

(c) order that said Code be and it hereby is approved as the Code 
of Fair Competition for the Ring Traveler Manufacturing Indus- 
try, as above defined. 

This Order shall become effective ten (10) days from the date 
hereof unless prior to that time good cause to the contrary is shown 
to me and I, by my further order, otherwise direct. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Barton W. ^Iurray, 

Division Administrator, 

Washington, D.C, 

September 7, 193^. 

84730° 1181-23 34 (135) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Basic Code of Fair Competition for 
the Ring Traveler Manufacturers Association, which was presented 
by duly qualified and authorized representatives of the Industry, 
complying with statutory requirements, said to represent substan- 
tially in excess of 75 per cent in volume of sales of the Industry 
which could be included in tliis Code. 

GENERAL STATEMENT 

The Ring Traveler Manufacturers Association, being truly repre- 
sentative or the Ring Traveler Manufacturing Industry, has elected 
to avail itself of the option of submitting a Basic Code of Fair 
Competition, as provided in Administrative Order X-61, dated 
July 10 1934. 

This Industry manufactures and sells ring spinning and twisting 
travelers used for spinning and twisting yarns. 

THE INDUSTRY 

According to statistics furnished by members of the Ring Traveler 
Manufacturers Association, there are approximately six concerns 
engaged in the Industry, with aggregate annual sales of $1,250,000.00. 
The Industry employs about 147 persons. 

PR0\T[SION8 OF THE CODE 

The hour and wage provisions of this Code establishes a maximum 
54 hour work week and a minimum wage of 350 per hour. Due 
to the peculiar nature of the Industry where the travelers are proc- 
essed by heat treating, it is felt necessary to have the long hour week. 
Wages of at least one and one-half times the usual hourly rate will 
be paid for all hours worked in excess of 40 hours per week or 8 
hours in any one day. The remaining provisions of the Code are 
those of the Basic Code of Fair Competition, as provided in Admin- 
istrative Order X-Cl, dated July 10, 1934. 

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 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 

(138) 



137 

removal of obstructions to the free flow of interstate and foreign com- 
merce which tend to diminish the amount thereof and will provide 
for the general welfare by promoting the organization of industry for 
the purpose of cooperative action among trade groups, by inducing 
and maintaining united action of labor and management under ade- 
quate governmental sanctions and supervision, by eliminating unfair 
competitive practices, by promoting the fullest possible utilization 
of the present productive capacity of industries, by avoiding undue 
restriction of production (except as may be temporarily required), by 
increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise re- 
habilitating industry. 

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

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

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

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

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

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

Hugh S. Johnson, 

A dmin istrator, 
September 7, 1934. 



EXHIBIT "A". CODE OF FAIR COMPETITION FOR THE 
RING TRAVELER MANUFACTURING INDUSTRY 

Article I 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a basic 
Code of Fair Competition for the Ring Traveler Manufacturing 
Industry which shall govern the said industry in accordance with 
Administrative Order No. X-61, dated July 10, 1934. 

" Industry " means and includes the manufacture and sale of Ring 
spinning and twisting Travelers used for spinning and twisting 
Tarns. 

Article II 

Sectiox 1. Hours. — Forty hours shall be considered as a normal 
working week, but when, owing to the peculiar requirements of 
manufacture within the industry, the necessity arises, employees may 
be permitted to work not in excess of fifty-four (54) hours in any 
one (1) week. All hours in excess of eight (8) hours per day or 
forty (40) hours per week shall be paid for at not less than one and 
one-half (1^) times the employee's regular rate. 

Section 2. Exceptions. — The provisions of Section 1 shall not 
apply to employees engaged in emergency maintenance or emergency 
repair work involving breakdown or the protection of life or prop- 
erty, nor to persons employed in a managerial or executive capacity 
who earn regularly thirty-five dollars ($35.00) per week or more, nor 
to any other class of employees which the Administrator shall find 
upon application of true representatives of the trade or industry 
should be subjected to an exemption or modification in accordance 
with N.R.A. policy; provided, however, that employees engaged in 
such emergency maintenance and emergency repair work shall be 
2)aid at one and one-half (1%) times their normal rate for all hours 
worked in excess of forty (40) hours per week. 

Section 3. M'miinmn Wages. — No employee shall be paid less than 
at the rate of thirtj^-five cents (35^) per hour. 

Section 4. Wages in Gen-eral. — AH wages shall be adjusted so as 
to maintain a differential at least as great in amount as that existing 
on June IG, 1933, between wages for such employment and the then 
minima. In no case shall there be any reduction in hourly rates; 
nor in weekly earnings for any reduction in hours of less than thirty 
per cent. 

Article III 

Section 1. Child Labor. — No person under sixt.een j^cars of age 
shall be employed in the industry in any capacity. No person under 
eighteen years of age shall bo employed at operations or occupa- 
tions which are hazardous in nature or dangerous to health. The 

(188) 



139 

Code Authority shall submit to the Administrator for approval be- 
fore October 1, 1934, a list of such operations or occupations. In 
any State an emploj^er shall be deemed to have complied with this 
provision as to age if he shall have on file a valid 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 age. 

Section 2. Apprentices. — The hours and wages of regularly inden- 
tured apprentices in skilled trades or occupations of the industry 
may depart from the standards hereinabove prescribed; provided 
that the terms of employment and the course of instruction of such 
apprentices shall conform to standards uniform throughout the 
trade or industry and approved by the Administrator. 

Section 3. Handicapped Persons. — A person whose earning ca- 
pacity is limited because of age, physical or mental handicap, or 
other infirmity, may be employed on light work at a wage below 
the minimum established by this Code, if the employer obtains from 
the State authority designated by the United States Department of 
Labor, a certificate authorizing such person's employment at such 
wages and for such hours as shall be stated in the certificate. Such 
authority shall be guided by the instructions of the United States 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. 

Section 4. Safety and Health. — Every 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 for 
safety and health shall be submitted by the Code Authority to the 
Administrator for approval within six (6) months after the effec- 
tive date of this Code. The standards approved shall thereafter 
be a part of this Code and enforceable as such. 

Section 5. Required Lahar Clauses. — The provisions of Section 
7 (a) of said Act are hereby incorporated herein by this reference 
and shall be complied with. 

Article IV — Administration 

This Code shall be administered by the General N.R.A. Code Au- 
thority which shall be selected pursuant to, have the powers speci- 
fied in and function in accordance with Administrative Order 
X-62, dated July 10, 1934; provided, however, that, on approval 
by the Administrator, any industry so desiring may elect its own 
Code Authority to liave powers and to function in the manner pre- 
scribed for the General N.R.A. Code Authority and under such rules 
and regulations as the Administrator may prescribe. 

Article V — Trade Practices 

(a) It shall be an unfair method of competition for any mem- 
ber of any trade or industry subject hereto to violate any rule of 
fair trade practice for such trade or industry even if not herein con- 
tained when approved by the Administrator, or, in the case of trade 



140 

practice provisions for trades or industries under the jurisdiction 
of the Secretary of Agriculture when approved by such Secretary, 
on application concurred in by seventy-five (75) per cent of the 
members of such trade or industry. 

(b) Prices, rebates, discounts, commissions and conditions of sale 
shall be filed as prescribed in Administrative Order No. X-G2, dated 
July 10, 1934, and it shall be an unfair method of competition to 
violate or fail to comply with tlie terms of that Order. 

Article VI 

Section 10 (b) of said Act is hereby incorporated herein by refer- 
ence and this Code is expressly made subject thereto. 

Approved Code No. 517. 
Registry No. 1122-1-OG. 

O 



Approved Code No. 518 
CODE OF FAIR COMPETITION 

FOR THE 

SHUTTLE MANUFACTURING INDUSTRY 

As Approved on September 7, 1934 



ORDEE 



Approving the Basic Code as the Code of Fair Compettiton for 
THE Shuttle Manufacturing Industry 

An application having been made pursuant to Administrative 
Order No. X-61, dated tfuly 10, 1934, for the approval of the Basic 
Code, as modifiea and attached to the annexed report as Exhibit "A", 
as the Code of Fair Competition for the Shuttle Manufacturing 
Industry, defined for the purposes of this Order as follows: 

The Shuttle Manufacturing Industry means and includes all cor- 
porations and their subsidiaries, firms or individuals, engaged in 
the manufacture and sale of Shuttles and/or repair parts therefor, 
and/or repairing thereof for the textile manufacturing industry; 
and it appearing to me that said application is in full compliance 
with the provisions of Title I of the National Industrial Recovery 
Act, and that the annexed report on said Code, containing findings 
with respect thereto, has been made and directed to the President: 

NO^V, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise, do hereby: 

(a) incorporate by reference said annexed report and said Code, 
as attached thereto marked Exhibit "A", 

(b) 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 

(c) order that said Code be and it hereby is approved as the Code 
of Fair Competition for the Shuttle Manufacturing Industry, as 
above defined. 

This Order shall become effective ten (10) days from the date 
hereof unless prior to that time good cause to the contrary is shown to 
me and I, by my further order, otherwise direct. 

Hugh S. Johnson, 
Administrator for Industrial Reco'very, 

Approval recommended: 
Barton W. Murray, 

Division Administrator, 

Washington, D.C, 

September 7, 193^. 

84729'"— 1181-24— .—84 (141) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on the Code of Fair Competition for the 
Shuttle Manufacturing Industry, which was presented by duly quali- 
fied and authorized representatives of the Industry, complying with 
statutory requirements, said to represent 75 per cent in volume of 
sales of the Industry which could be included in this Code. 

GENERAL. STATEMENT 

The American Shuttle Manufacturers' Association, being truly 
representative of the Shuttle Manufacturing Industry, has elected 
to avail itself of the option of submitting a Basic Code of Fair Com- 
2Detition, as provided in Administrative Order X-61, dated July 10, 
1934. 

This Industry fabricates and assembles and sells shuttles, and/or 
repair parts therefor and/or repairing thereof for the Textile Manu- 
facturing Industry. 

THE INDUSTRY 

According to statistics furnished by members of the Shuttle 
Manufacturing Industry, there are approximately twenty-five con- 
cerns engaged in the Industry, with aggregate annual sales of 
$750,000.00. The Industry employs about 325 persons. 

PROVISIGNS OF THE CODE 

The hour and wage provisions of this Code establish a maximum 
40 hour work week and a minimum wage of thirty-five cents per hour. 
This is similar to the minimum wage in the Bobbin and Spool In- 
dustry which is closely related to it. The other hour and wage pro- 
visions are similar to those in that Code. The remaining provisions 
of the Code are those of the Basic Code of Fair Competition, as pro- 
vided in Administrative Order X-61, dated July 10, 1934. 

riNDINGS 

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

I find that: 

(a) Said Code is well designed to promote the policies and 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 or in- 

(142) 



143 

dustry 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 elimi- 
nating unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agri- 
cultural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

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

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

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

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

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

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

Hugh S. Johnson, 

Admifiistrator, 
September 7, 1934. 



j:XIIIBIT "A." CODE OF FAIR COIklPETITION FOR THE 
SHUTTLE MANUFACTURING INDUSTRY 

Article I 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a basic 
Code of Fair Competition for the Shuttle Manufacturing Industry 
which shall govern this industry in accordance with Administra- 
tive Order No. X-61, dated July 10, 1934. 

The Shuttle Manufacturing Industry means and includes all 
corporations and their subsidiaries, firms or individuals, engaged 
in the manufacture and sale of Shuttles and/or repair parts there- 
for, and/or repairing thereof for the textile manufacturing industry. 

Article II 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any one week or ei^ht (8) hours in any twenty- 
four (24) hour period nor more than six (6) days per week, except 
as herein otherwise provided. 

Section 2. The maximum hours fixed in Section 1 shall not apply 
,to employees engaged in an executive, managerial or supervisory 
I capacity, who receive more than thirty-five ($35.00) dollars per 
week, and outside salesmen. 

' Section 3. The maximum hours fixed in Section 1 shall not apply 
,to any employee on emergency maintenance or emergency repair 
work involving breakdowns or protection of life or property, but 
in any such special case at least one and one-half (1%) times the 
regular rate shall be paid for hours worked in excess of eight (8) 
hours per day and forty (40) hours per week. 

Section 4. Watchmen may be employed not more than fifty-six 
(■(56) hours in any one (1) week. 

Section 5. Maintenance crews, engineers, firemen, truckmen, ship- 
ping clerks and delivery employees may be permitted to work not 
in excess of forty-five (45) hours in any one (1) week, provided 
that not less than one and one-half (lyo) times the normal rate of 
pay shall be paid for hours worked in excess of eight (8) hours per 
day and forty (40) hours per week. 

Section G. The maximum hours fixed in Section 1 shall not apply 
for six (6) weeks in any twenty-six (2G) weeks' period, during which 
time overtime shall not exceed eight (8) hours in any one week- 
provided, however, tliat in any such special case at least one and 
one-half (IV2) times the regular rate shall be paid for hours worked 
in excess of eight (8) hours per day and forty (40) hours per week. 

Section 7. No accounting, clerical or office employee shall be em- 
ployed in excess of forty (40) hours in any one (1) week or nine (9) 

(144) 



145 

hours in any one (1) day. Eight (8) hours shall constitute a normal 
working day. 

Section 8. No employer shall knowingly permit any employee to 
work for any time, which, when totaled with that already performed 
for another employer or employers, exceeds the maximum permitted 
herein. 

Section 9. Employers performing manual work or who are en- 
gaged in mechanical operations shall not exceed the prescribed maxi- 
mum number of hours. 

Section 10. No employee shall be paid less than thirty-five cents 
(350) per hour, except: 

Clerical and office employees shall be paid at the rate of not less 
than fourteen dollars ($14.00) per week. 

Section 11. This Article establishes a minimum rate of pay re- 
gardless of whether an employee is compensated on a time-rate, piece- 
work or other basis. 

Section 12. Female employees performing substantially the same 
quantity or class of work, or performing the same duties, as male 
employees shall receive the same rates of pay as male employees. 

Section 13. All wages shall be adjusted so as to maintain a dif- 
ferential at least as great in amount as that existing on June 16, 
1933, between wages for such employment and the then minima. In 
no case shall there be any reduction in hourly rates; nor in weekly 
earnings for anv reduction in hours of less than thirty per cent. 

Section 14. An employer shall make payment of all wages due in 
lawful currency or by a negotiable check payable on demand. 

Section 15. No employer, whether acting through agents or other- 
wise, shall accept rebates or give anything of value or extend favors 
to any person for the purpose of influencing rates of pay or the 
working conditions of his employees. 

Article III 

Section 1. Child Labor. — No person under sixteen years of age 
shall be employed in the industry in any capacity. No person under 
eighteen years of age shall be employed at operations or occupations 
which are hazardous in nature or dangerous to health. The Code 
Authority shall submit to the Administrator for approval before 
October 1, 1934, a list of such operations or occupations. In any 
State an employer shall be deemed to have complied with this pro- 
vision as to age if he shall have on file a valid 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 age. 

Section 2. Apprentices. — The hours and wages of regularly in- 
dentured apprentices in skilled trades or occupations of the industry 
may deport from the standards hereinabove prescribed ; provided that 
the terms of employment and the course of instruction of such ap- 
prentices shall conform to standards uniform throughout the trade, 
or industry and approved by the Administrator. 

Section 3. Handicapped Persons. — A person whos© earning ca- 
pacity is limited because of age, physical or mental handicap, or other 
infirmity, may be employed on light work at a wage below the mini- 



146 

mum 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 cortificat-e. 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 4. Safety and Health. — Every employer shall make rea- 
sonable provision for the safety and health of his emjiloyees at the 
place and during the hours of their employment. Standards for 
safety and health shall be submitted by the Code Authority to the 
Administrator for approval within six months after the effective date 
of this Code. The standards approved shall thereafter be a part of 
this Code and enforceable as such. 

Section 5. Required Labor Clauses. — The provisions of Section 
7 (a) of said Act are hereby incorporated herein by this reference 
and shall be complied with. 

Article IV — Administration 

This Code shall be administered by the General NRA Code Author- 
ity which shall be selected pursuant to, have the powers specified in 
and function in accordance with Administrative Order X-62, dated 
July 10, 1934; provided, however, that, on approval b}'^ the Admin- 
istrator, any industry so desiring may elect its own Code Authority 
to have powers and to function in the manner prescribed for the 
General N. R. A. Code Authority and under such rules and regula- 
tions as the Administrator may prescribe. 

Article V — Trade Praotices 

(a) It shall be an unfair method of competition for any mem- 
ber of any trade or industry subject hereto to violate any rule of 
fair trade practice for such trade or industry even if not herein 
contained when approved by the Administrator, or, in the case of 
trade practice provisions for trades or industries under the juris- 
diction of the Secretary of Agriculture when approved by such 
Secretary, on application concurred in by seventy-five (75) per 
cent of the members of such trade or industry. 

(b) Prices, rebates, discounts, commissions and conditions of sale 
shall be filed as prescribed in Administrative Order No. X-62, dated 
July 10, 1934, and it shall be an unfair method of competition to 
violate or fail to comply with the terms of that Order. 

Article VI 

Section 10 (b) of said Act is hereby incorporated herein by 
reference and this Code is expressly made subject thereto. 

Approved Code No. 518. 
Registry No. 1333-14. 

o 



Approved Code No. 519 
CODE OF FAIR COMPETITION 

FOR THE 

NATURAL CLEFT STONE INDUSTRY 
As Approved on September 11, 1934 



ORDEE 



Approving Code of Fair Competitiok for the Natural Cleft Stoxe 

Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June IG, 1933, for approval of a Code of 
Fair Competition for the Natural Cleft Stone Industry, and hear- 
ings having been duly held thereon and the annexed report on said 
Code, containing findings with respect thereto, having been made and 
directed to the President 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 an- 
nexed report and do find that said Code complies in all respects with 
the pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved. Provided, however, that 
the Code Authority shall, not later than ninety (90) days after the 
date of this Order, submit to the Administrator further evidence that 
the averaging of hours as provided in Section 1 of Article III is 
necessary in this Industry, 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
C. E. Adams, 

Division Administrator. 

Washington, D.C, 

Septemher 11, IQSIf. 

85405° 1181-41 34 (147) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Natural Cleft Stone Industry, whose products are commonly known 
as flagstone. A hearing on this Code was conducted in Washington, 
D.C. on March 17, 1934, in accordance with the provisions of the 
National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

The Avork week is limited to forty hours, averaged over periods of 
three months, with a maximum of forty -eight hours in any one week, 
six days in any one week and eight hours in any twenty-four hour 
period. Exception is made for employees engaged on emergency 
maintenance and repair work, but they must be paid one and one- 
half times the hourly rate for all overtime. Travelling salesmen 
are also excepted, and managers and executives who receive regularly 
not less than thirty-five dollars per week. The work week for watch- 
men is extended to fifty-six hours. 

The minimum wage rate is foi-ty cents per hour except in places 
of less than twenty-five hundred population, where it is set at thirty 
cents per hour for the Southeastern, and thirty-eight cents per hour 
for the Northeastern region. 

CHILD LABOR 

Child labor is prohibited, the minimum age for all employees 
being set at eighteen years. 

ECONOMIC EFFECT OF THE CODE 

Like all other construction materials the sale of flagstone has been 
greatly curtailed. Accurate statistics are not available, but it is esti- 
mated that the value of the products has fallen from a million doUare 
in 1928 to one quarter that amount in 1933; and em])loyment has 
been cut irom slightly over four hundred to a little under half that 
amount in the same period. Not much increase in employment can 
be expected until a revival of construction occurs. The proi)osed 
wages, however, represent a marked increase and will restore the 
1929 level of Avages. 

An ap])reciable ])art of the volume is produced by two or three 
man quarries or pits, working on shares. Much of this stone is sold 
for whatever it will bring, corresponding to very low wage rates. 
It is hojjed that the trade practice provisions of the Code will help 
to eliminate this situation. 

(148) 



149 



FINDINGS 



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

I find that : 

(a) Said Code is well designed to i:)romote the policies and ])ur- 
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 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 agi'icui- 
tural products through increasing purchasing power, by reducing and 
relieving unemployment, by improving standards of labor, and by 
otherwise rehabilitating industry. 

(b) Said Industry normally emplo3'^s not more than 50,000 
employees; and is not classified by me as a major industry. 

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

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

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

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

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
September 11, 1934. 



CODE OF FAIR COMPETITION FOR THE NATURAL 
CLEFT STONE INDUSTRY 

Article I — Purposes 

To eifcctuate the policies of Title I of the National Industrial Re- 
covery Act, this Code is established as a Code of Fair Competition 
for the Natural Cleft Stone Industry and its provisions shall be the 
standards of fair competition for such Industry and be binding upon 
every member thereof. 

Article II — DEriNiTiONs 

Wlierever used in this Code or any supplement appertaining 
thereto, the terms enumerated in this Article shall have the meanings 
lierein defined, unless the context shall otherwise clearly indicate. 

Section 1. The term " Cleft Stone Industry " or " Industry " as 
used herein includes the quarrying of and/or tne assembling of cleft 
stone and the original sale thereof by a producer of cleft stone to a 
consumer or to an assembler directly or indirectly, either by himself 
or his agent, which includes without limitation any person or cor- 
poration occupying a subsidiary or controlling relationship or one 
of conunon, mutual or joint ownership or control to a Member of 
Industry, and/or the sale of assembled cleft stone by an assembler 
directly or indirectly, either by himself or his agent, which includes 
without limitation any person or corporation occupying a subsidiary 
or controlling relation^shi]) or one of conunon, mutual or joint owner- 
ship or control to a Member of Industry. 

For the purposes of this Code " Stone Yards '■ whose j^rincipal 
business has to do with the assembling, processing, fabricating and 
sale of cleft stone, shall be jncluded in the Cleft Stone Industry. 

Sectiox 2. The term '* Member of Industry " as used herein in- 
cludes, but without limitation, any individual, partnership, associa- 
tion, corporation or other form oi enteri)rise engaged in the Indus- 
try, either as an employer or on his or its own behalf. 

Section 3. The term " Natural Cleft Stone '' (commonly called 
" flagstone ") as used herein means any rock except slate or granite 
having natural cleavage and used for paving, curbing, building or 
other construction purj^oses. 

Skction 4. The term " Employee " means and includes anyone en- 
gaged in the Industry in any capacity receiving compensation for 
his services, irrespective of the nature or method of payment of such 
compensation, except a Member of Industry. 

Section 5. Tiie term " Employer " means and includes anyone by 
whom any such employee is employed or compensated. 

Section G. The terms " President ", "Act ", and "Administrator " 
us used herein mean respectively the President of the United States, 

(150) 



151 

Title I of the National Industrial Recovery Act, and the Admin- 
istrator for Industrial Recovery. 

Section 7. The term " Southeastern Region " shall include the 
States of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisi- 
ana, Mississippi, North Carolina, South Carolina, Tennessee and 
Virginia. 

Section 8. The term " Northeastern Region " shall include that 
part of the United States north of the Southeastern Region and 
east of the Mississippi River. 

Section 9. The term " Districts " shall mean a section of a region 
in which one or more operating quarries are located as established by 
the Code Authority. 

Article III — Houus 

Section 1. Maximum Hours. — No employee shall be permitted to 
work in excess of forty (40) hours per Aveek, averaged over three 
(3) month periods (such periods to be the regular quarterly periods 
of each year), or in excess of eight (8) hours in any twenty-four 
(24) hour period, or in excess of forty-eight (48) hours in any one 
(1) week, or in excess of six (6) days in any seven (7) day period.^ 

Section 2. Exceptions as to Hours. — The maximum provisions as 
specified in Section 1 of this Article III, shall not apply to the 
following : 

(a) Employees engaged in emergency maintenance or emergency 
repair work, involving breakdown or protection of life or property ; 
provided, that in such special cases not less than one and one-half 
(1%) times the normal wage rate for any employee so employed 
shall be paid for all hours worked in excess of eight (8) hours per 
day or forty-eight (48) hours per week. 

(b) Persons engaged in a managerial, executive or supervisory 
capacities or in technical work who receive not less than Thirty-five 
Dollars ($35.00) per week; and to outside sales or sales service 
employees. 

(c) Watchmen, who shall not be permitted to work in excess of 
fifty-six (56) hours in any one (1) week, or six (6) days in any 
seven (7) day period. 

Section 3. Employment hy Several Employers. — No employer 
shall knowingly permit any employee to work for any time which, 
when totalled with that already performed with another employer 
or employers in this Industry or other trades or industries, exceeds 
the maximum permitted herein. 

Section 4. Any Member of Industry performing any work in the 
Industry, except in an executive, supervisory, managerial or pro- 
fessional capacity, shall conform to the maximum hour provisions in 
this Code. 

Article IV — Wages 

Section 1. Miniviwn Wages. — No employee shall be paid in any 
pay period less than at the rate of 40^ per hour, except that in towns 
and localities of less than 2,500 population they shall not be paid 
at less than the rate of 38^ per hour in the Northeastern Region nor 
less than at the rate of 30^ per hour in the Southeastern Region. 



1 See paragraph 2 of order approving this Code. 



152 

Section 2. Piecework Compensation — Minimum Wa^es. — This 
Article establishes a inininium rate of pay which sliall apply, irre- 
spective of whether an employee is actually compensated on a time 
rate, piece-work, or other basis. 

Section 3. Wa(/e.s Above the Miniwum. — Employers shall not re- 
duce the rates of wanes for employees whose rates are in excess of the 
minimum rate of wages (notwithstanding that the number of hours 
worked in such employment may be hereby decreased). Equitable 
adjustments of wages with respect to the niinimum shall be made 
within thirty (30) days after the eifective date of this Code by each 
emplo3'er who has not heretofore made such adjustments under the 
National Industrial Recovery Act. In no event shall hourly rates be 
reduced in nuiking such adjustments. Within sixty (60) clays after 
the eiTective date of this Code each Member of Industry shall make a 
report of such adjustment, whether made prior to or subsequent to 
the date of approval of this Code, to the Code Authority. 

Section 4. Payment of ^Vagcs. — Each employer shall make pay- 
ment of all wages in lawful currency, or by negotiable check there- 
for, payable on demand. These wages shall be exempt from any 
jjayments for pensions, insurance or sick benefits other than those 
voluntarily paid by the wage earner or required by law. Pay periods 
for wages shall be at no greater interval than every semimonth, and 
salaries at no greater interval than ever}'^ month. No emploj'^er shall 
withhold wages except as otherwise provided by law. 

Section o. Haiidicapped Persons.— X person whose earning capac- 
ity is limited because of age, physical or mental handicap, or other 
infirmity, may be employed on light work at a wage below the mini- 
mum established bj^ 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 Laboi- in issuing certificates to such persons. Each employer shall 
file with the Code Authority a list of all such persons employed by 
him, showing the wages paid to and the maximum hours of work 
for such employee. 

Article V — General Labor Provisions 

Section 1. Child Lahor. — No person under eighteen ("18) years of 
age shall be emplo\ed in the Industry in any capacity. In any 
State an employer shall be deemed to have complied with this pro- 
vision as to age if he shall have on file a certificate or permit, duly 
signed by the Authority in such State empowered to issue employ- 
ment or age certificates or permits showing that the employee is of 
the required age. , 

Section i^. ProriHions of the Act. — (a) Em})loyees shall have the 
riglit to organize and bargain collectively through representatives 
of their own choosing, and shall be free from the interference, re- 
straint, or coercion of employers of labor, or their agents, in the 
designation of such representatives or in self-organization or in 
other concerted activities for the purpose of collective bargaining 
or other mutual aid or protection. 



153 

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

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

Section 3'. Reclassification of Emjyioyees. — No employer shall re- 
classify employees or duties of occupations performed or engage in 
any other subterfuge for the purpose of defeating the provisions of 
the Act or of this Code. 

Section 4. Standards for Safety and Health. — Every employer 
shall provide for the safety and health of his employees at the place 
and during the hours of their emplojanent. Standards for safety 
and health shall be submitted by the Code Authority to the Admin- 
istrator for approval within three (3) months after the effective 
date of this Code. 

Section 5. State Laws. — No provision in this Code shall supersede 
any State or Federal hiw which imposes on employers more stringent 
requirements as to age of emplo3'ees, wages, hours of work, or as to 
safety, health, sanitary or general working conditions, or insurance, 
or fire protection, than are imposed by this Code. 

Section 6. Posting. — All employers shall post and keep posted 
complete copies of this Code and all amendments thereto in con- 
spicuous places accessible to employees, and shall comply with all 
rules and regulations relative to posting which may from time to 
time be prescribed by the Administrator. 

Section 7. Disini^sal for Complaint. — No employer shall dismiss 
or demote any employee for making a complaint or giving evidence 
with respect to an alleged violation of this Code. 

Abticle VI — Organization, Powders, and Duties of the Code 

Authority 

Section 1. Organization and Constitution. — (a) A Code Authority 
is hereby established consisting of four (4) voting members, to be 
selected in the following manner : 

One member shall be the President of the Natural Cleft Stone 
Association from time to time in office : 

One member shall be chosen by said Association from each of the 
regions of the Industry, and one member shall be elected by and 
from non-members of said Association. The selection of all mem- 
bers to the Code Authority shall be by a fair and equitable method 
of election to be approved by the Administrator. In the event that 
the selection of tlve Association's non-member representative on the 
Code Authority is not made within thirty (30) days after the effec- 
tive date of this Code such member may be selected by the Admin- 
istrator. Any vacancy in the Industry membership of the Code 
Authority shall be filled for the unexpired term in the same manner 
as the retiring member was chosen. 

(b) In each region tliere shall be selected such regional and 
district committees as may be required to assist the Code Authority 
in the administration of the Code, under such regulations as the 



154 

Code Authority may provide, sul)ject to the approval of the 
Administrator. 

Section 2. In addition to the membership as above provided, there 
may be 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. 

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

Section 4. In order that the Code Authority shall at all times be 
truly representative of the Industry and in other respects comply 
with the i^rovisions 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 remiire 
an appropriate modification in the method of selection of such Code 
Authority. 

Section 5. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner 
to anyone for any act of any other member, officer, agent or em- 
ployee of the Code Authority. Nor shall any member of the Code 
Authority, exercising reasonable diligence in the conduct of his 
duties hereunder, be liable to anyone tor any action or omission to 
act under this Code, except for his own wilful malfeasance or 
nonfeasance. 

Section 6. If the Administrator shall at any time determine 
that any action of a Code Authority or any agency thereof may 
be unfair or unjust or contrary to the public interest, the Admin- 
istrator may require that such action be suspended to afford an op- 
portunity for investigation of the merits of such action and further 
consideration by such Code Authority or agency pending final ac- 
tion which shall not be effective unless the Administrator approves 
or unless he shall fail to disapprove after thirty (30) days notice to 
him of intention to proceed with such action in its original or modi- 
fied form. 

Section 7. Powers and Duties. — Subject to such rules and regu- 
lations as may be issued by the Administrator, and to the extent per- 
mitted by the Act, the Code Authority shall have the following 
further powers and duties : 

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

(b) To adopt By-Laws, Rules and Regulations for its procedure 
and for the administration of this Code. The Code Authority shall 
promptly furnish to the Administrator for his approval true copies 
of the By-Laws, Rules and Regulations adopted pursuant to this 
paragraph. 



155 

(c) To obtain from Members of the Industry such statistical in- 
formation and reports as are required for the administration of this 
Code and to provide for submission by members of such statistical 
information and reports as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the Act, which informa- 
tion and reports shall be submitted by members to such Federal 
and/or State agencies as the Administrator may designate; pro- 
vided, that nothing in this Code shall relieve any Member of the 
Industry of any existing obligations to furnish reports to any gov- 
ernment agency. No individual reports submitted to the Adminis- 
trator and/or such government agencies as the Administrator may 
designate, shall be disclosed to any other Member of the Industry 
or any other party except such government agencies as may be di- 
rected 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 tiiat nothing herein shall relieve the Code Au- 
thority of its duties or responsibilities - under this Code and that 
such trade associations and agencies shall at all times be subject 
to and comply with the provisions hereof. 

(e) To make recommendations to the Administrator for the co- 
ordination of the administration of this Code with such other Codes, 
if any, as may be related to or all'ect Members of the Industry. 

Sectiok 8. It being found necessary to support the administration 
of this Code in order to maintain the standards of fair competition 
established by this Code and to effectuate the policy of the Act, the 
Code Authority is authorized: 

(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes and to meet such obligations out 
of funds which may be raised as hereinafter provided and which shall 
be held in trust for the purposes of this 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 tlie 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 liave been ap- 
proved by the Administrator, to determine and secure equitable con- 
tribution as above set forth by all such Members of the Industry, and 
to that end, if necessary, to institute legal proceedings therefor in its 
own name. 

Section- 9. Each Member of the Industry shall pay his or its 
equitable contribution to the expenses of the maintenance of the Code 
Authority, determined as hereinabove provided, and subject to rules 
and regulations pertaining thereto issued by the Administrator. 
Only Members of the Industry complying with the Code and con- 
tributing to the expenses of its administration as liereinabove 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. 



156 

Section 10. The Code Authority shall neither incur nor pay any 
obligation substantially in excess of the amount thereof as estinuited 
in its ai)i)r()vefl budjjjet, and shall in no event exceed the total amount 
contained in the api)roved budget except upon approval of the Ad- 
ministrator: and no subsequent bud<>et shall contain any deficiency 
item for exjienditures in excess of {trior budjret estimates except those 
■which the Administrator shall have so approved. 

Section 11. To reconnnend to the Administrator any action or 
measures deemed advisable, includinoj further fair trade practice pro- 
visions t-o govern jSIembers of the Industry in their relations with 
each other or with other industries; measures for industrial plan- 
ning, and stabilization of employment; and including modifications 
of this Code which shall become" efFective as a part hereof upon ap- 
proval by the Administrator after such notice and hearing as he may 
specify. 

Sec-hon 12. To appoint a Trade Practice Committee which shall 
meet with the Trade Practice Committees appointed under such other 
Codes as may be related to the Industry for the purpose of formulat- 
ing fair trade practices to govern the relationships between employers 
under this Code and under such other Codes to the end that such 
fair trade practices may be proposed to the Administrator as amend- 
ments to this Code and such other Codes. 

Section 13. To define within regions the necessary districts re- 
quii-^d to administer this Code and to establish additional regions if 
and when quarries are commercially developed therein, subject to the 
approval of the Administrator. 

Section 14. Any interested party shall have the right of complaint 
to the Code Authority and a prompt hearing and decision thereon 
under such rules and regulations as the Administrator may pre- 
scribe in respect to any act of any agents or agency designated by 
the Code Authority to act in its behalf. 

Article VII — Trade Practice Rules 

Section 1. The following trade practices are declared to consti- 
tute unfair methods of competition between Members of the In- 
dustry, and no Member of the Industry shall use or engage in any 
of them, either directly or indirectly, through any officer, agent or 
employee. Engaging in any one or more of these or any further 
trade practice provisions Avhich hereafter may be established on rec- 
ommendation by the Code Authority, approved by the Adminis- 
trator, after such hearings as he may prescribe, shall be deemed a 
violation of this Code : 

(a) 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. 

(b) No Member of the Industry shall brand, or mark, or pack 
any goods in any manner which is intended to or does deceive or 
mislead purchasers with respect to the brand, ^rade, quality, quan- 
tity, origin, size, substance, character, nature, finish, material, con- 
tent or preparation of such goods. 

(c) No Member of the Industry shall defame a competitor by 
falsely imputing to him dishonorable conduct, inability to perform 



157 

contracts, questionable credit standing, or by other false representa- 
tion, or by falsely disparaging the grade or quality of his goods. 

(d) Knowingly 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 between a Member of 
Industry and his customer. 

(e) No Member of Industry shall publish or circulate unjustified 
or unwarranted threats of legal proceedings which tend to or have 
the effect of harassing competitors or intimidating their customers. 

(f ) No Member of the Industry shall secretly offer or make any 
payment or allowance of a rebate, refund, commission, credit, un- 
earned discount or excess allowance, whether in the form of money 
or otherwise, nor shall a Member of the Industry secretly offer or 
extend to any customer any special service or privilege not extended 
to all customers of the same class, for the purpose of influencing a 
sale. 

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

(h) No Member of the Industry shall engage in the practice 
known as " bid peddling ", which is defined as giving or attempting 
to give information, true or false, to a bidder regarding the estimate 
or bid of a competitor in order to gain or give an unfair advantage. 

Article VIII — Marseting Practices 

Section 1. O'pen Price Policy. — Eadi Member of the Industry 
shall file with a confidential and disinterested agent of the Code 
Authority or, if none, then Avith such an agent designated by the 
Administrator, identified lists of all of his prices, discounts, rebates, 
allovv-ances, and all other terms or conditions of sale, hereinafter in 
this Article referred to as ' price terms ' which lists shall completely 
and accurately conform to and represent the individual pricing 
practices of said member. Such lists shall contain the price terms 
for all such standard products of the Industry as are sold or offered 
for sale by said member and for such non-standard products of said 
member as shall be designated by the Code Authority. Said price 
terms shall in the first instance be filed within ten (10) days after the 
date of approval of this provision. Price terms and revised price 
terms shall become effective immediately upon receipt thereof by 
said agent. Immediately upon receipt thereof, said agent shall by 
telegraph, or other equally prompt means notify said member of 
the time of such receipt. Such lists and revisions, together with 
the effective time thereof, shall upon receipt be immediately and 
simultaneously distributed to all Members of the Industry and to 
all of their customers wdio have applied therefor and have 
offered to defray the cost actually incurred by the Code Authority 



158 

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 avail- 
able to any person until released to all Members of the Industry 
and their customers, as aforesaid; provided, that prices filed in the 
first instance shall not be released until the expiration of the afore- 
said ten (10) day i)eriod after the approval of this Code. The 
Code Authority shall maintain a permanent file of all price terms 
filed as herein provided, and shall not destroy any part of such 
records except upon written consent of the Administrator. Upon 
request the Code Authority shall furnish to the Administrator or 
any duly designated agent of the Adminstrator copies of any such 
lists or revisions of price terms. 

Section 2. When any Member of the Industry has filed any re- 
vision, such member shall not file a higher price within forty-eight 
(48) hours. 

Section 3. No Member of the Industry shall sell or offer to sell 
any products of the Industry, for which price terms have been filed 
pursuant to the provisions of this Article VIII, except in accordance 
with such price terms. 

Section 4. No Member of the Industry shall enter into any agree- 
ment, understanding, combination or conspiracy to fix or maintain 
price terms, nor cause or attempt to cause any Member of the Indus- 
try to change his price terms by the use of intimidation, coercion, or 
any other influence inconsistent with the maintenance of the free 
and open market which it is the purpose of this Article to create. 

Section 5. Each Member of the Industry who offers trade dis- 
counts to different classes of his trade, shall publish and file with 
the agency described in Section 1 of this Article VIII, w^ithin fif- 
teen (^15) days after the effective date of this Code and whenever 
thereafter he makes any changes therein, a schedule of the definitions 
and qualifications by which he determines the classification and 
status of a customer in respect to such discounts. But this clause 
shall not be construed to require a classification of customers uniform 
for all Members of the Industry. 

Section C. Members of the Industry who regularly purchase a 
part or all of their requirements of cleft stone from quarriers and 
who publish a schedule of prices which they agree to pay for the 
different classes of the product, shall file such purchase price sched- 
ules with the agency described in Section 1 of this Article VIII. 
Any Member of the Industry who sells all of his products to another 
member or members at prices not lower than the prices in such a 
member's or members' purchase price list shall be relieved of the 
requirements under Sections 1, 2 and 4 of this Article yill. Such 
purchase prices shall not be lower than any emergency minimum cost 
which may be established under Section 8 of this Article VIII for 
the same products and during the same period. 

Section 7. No Member of the Industry shall, by means of any 
secret rebate, special discount or by selling or offering for sale non- 
standard grades, sizes, dimensions or classifications of products, offer 
to, or purchase or sell any Industry product in violation of the appli- 
cable price terms or purchase price schedule. 

Section 8. All Members of the Industry shall adopt and maintain 
such uniform bidding practices, credit and terms of payment and 



159 

other uniform, fair and eqiutablc sales practices as may be estab- 
lished b}' the Code Authority with the approval of the Administrator. 
Section 9. The standards of fair competition for the Industry 
with reference to pricintr practices are declared to be as follows: 

(a) Wilfully destructive price cutting is an unfair method of com- 
petition and is forbidden. Any Member of the Industry or of any 
other Industry or the customers of either may at any time complain 
to the Code Authority that any filed price constitutes unfair com- 
petition as destructive price cutting, imperiling- small enterprise or 
tending toward monopoly or the impairment of code wages and 
working conditions. The Code Authority shall within live (5) days 
afford an opportunity to tJhe 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 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 an}^ given prcnluct, sale below 
the stated minimum price of such product, in violation of Section 9 
of this Article VIII, is forbidden. 

Section 10. Emergency Provisions. — (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 ]:)urposes 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 effectuate 
the purposes of the Act, the Code Authority may cause an impartial 
agency to investigate costs and to recommend to the Administrator a 
determination of the stated minimum price of the product affected 
by the emergency and thereupon the Administrator may proceed to 
determine such stated minimum price. 

(b) When the Administrator shall have determined such stated 
minimum price for a specified product for a stated period, which 
price shall be reasonably calculated to mitigate the conditions of 
such emergency and to effectuate the purposes of the National 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 Autliority may recommend review or 
reconsideration, or the Administrator may cause any determinations 
hereunder to be reviewed or reconsidered and appropriate action 
taken. 

Section 11. Cost Finding. — The Code Authority shall cause to be 
formulated methods of cost finding and accounting capable of use by 
all Members of the Industry, and shall submit such methods to the 
Administrator for review. If approved by the Administrator, full 



160 

information conccrninor such methods shall be made available to 
all Members of the Industry, Thereafter, each Member of the In- 
dustry shall utilize such methods to the extent found practicable. 
Nothintr herein contained shall be construed to permit the Code 
Authoi-ity, any a^rent thereof, or any Member of the Industry to 
sugfrest uniform additions, percentan;es or differentials or other uni- 
form items of cost which are designed to bring about arbitrary 
uniformity of costs or prices. 

Article IX — Modification 

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

Section 2. Such of the provisions of this Code as are not re- 
quired to be included herein by the Act may, with the approval 
of the Administrator, be modified or eliminated in such manner as 
may be indicated by the needs of the public, by changes in circum- 
stances, or by experience. All the provisions of this Code, unless 
so modified or eliminated, shall remain in effect until June 16, 1935. 

Article X — Monopolies 

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

Article XI — 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, 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 

This Code shall become effective ten (10) days after its approval 
by the President. 



Approved Code No. 519. 
Registry No. 1039-12. 



o 



n 



AMENDMENTS 



89406—34 1 



Approved Code No. 157 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

HAIR CLOTH MANUFACTURING INDUSTRY 

As Approved on August 27, 1934 



ORDER 



Approving Amendment to the Code of Fair Competition for the 
Hair Ci.oth 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 Hair Cloth Manufac- 
turing Industry, and an opportunity to be heard thereon having 
been given and the annexed report on said amendment, containing 
findings with respect thereto, having been made and directed to the 
President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise, do hereby incorporate, by reference, said an- 
nexed report and do find that said amendment and the Code as 
constituted after being amended comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said. Act, and do hereby order that said amendment be 
and it is hereby approved, and that the previous approval of said 
Code is hereby modified to include an approval of said Code in its 
entirety as amended, 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, 
Ad7ninistrator for Industrial Recovery. 

Approval recommended : 
Robert L. Houston, 

Division Adtrdnistrator. 

Washington, D.C, 

August 27, 1934. 

(101) 



REPORT TO THE PRESIDENT 

The President, 

The ^VMte House. 

Sir: This is a report on an amendment to the Code of Fair Com- 
petition for the Hair Cloth Manufacturing Industry. Notice of 
Opportunity to be Heard on this amendment was published on June 
27, 1934; no objections were received within the given fifteen (15) 
day period ending July 11, 1934. The amendment, which is attached, 
was presented by duly qualified and authorized representatives of 
the Industry, complying with statutory requirements and being the 
duly constituted Code Authority under the provisions of the said 
Code for said Industry. 

This amendment provides for assessment of the members of the 
Hair Cloth Manufacturing Industry to defray the expenses of the 
Code Authority, as set fc^'th in Executive Order No. 6676, dated 
April 14, 1934.' 

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 
Nati(mal Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
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 ma}' be temporarily required), by 
increasing the consumption of industrial and agricultural ]n'oducts 
through increasing })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 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 Code Authority is empowered to present the aforesaid 
amendment on behalf of the Industry as a whole. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(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. 

(162) 



163 

(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. 
Respectively, 

Hugh S. Johnson, 

Administratar. 

August 27, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
HAIR CLOTH MANUFACTURING INDUSTRY 

Article VI, Section 4, is hereby amended to read as follows: 
4. (a) It beinc: found necessary in order to support the admin- 
istration of this t^ode and to maintain the standards of fair compe- 
tition established hereunder and to effectuate the policy of the Act, 
the Code Authority is authorized : 

(1) To incur such reasonable oblio:ations as are necessary and 
proper for the forefroing 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 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 
participate in the selection of members of the Code Authority or to 
receive the benefits of any of the 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 actual 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. 157 — Amendment No. 1. 
Registry No. 299-2-18. 

(164) 



Approved Code No. 201B — Amendment No. 2 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

WHOLESALE WALLPAPER TRADE 

As Approved on August 27, 1934 



OPvDER 



Approving Amendment to Supplementary Code of Fair Compe- 
tition FOR the Wholesale Wallpaper 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 an amend- 
ment to the Supplementary Code of Fair Competition for the Whole- 
sale Wallpaper Trade to the Code of Fair Competition for the 
Wholesaling or Distributing Trade, and an opportunity to be heard 
thereon having been given, and the annexed report on said amend- 
ment, containing findings with respect thereto, having been made 
and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order Number 6543-A, dated Decem- 
ber 30, 1933, and otherwise, do hereby incorporate by reference, 
said annexed report and do find that said amendment and the 
Supplementary 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 Supplementary Code is hereby modified 
to include an approval of said Supplementary 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 Adminis- 
trator issues a subsequent Order to that effect. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Robert L. Houston, 

Division AdTninistrator. 

Washington, D.C, 

August 27, 1931^. 

(165) 



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 Supplemental Code of Fair Competi- 
tion for the Wholesale Wallpaper Trade, said Supplemental Code 
beinc: approved Code number 201B and approved by me on March 
16, 1934. This Supplemental Code has been amended by adding 
a new section to Article III, said section being designated as Sec- 
tion 2. The purpose and effect of this amendment are to author- 
ize the Divisional Code Authority to submit a Budget and Method 
of Assessment upon which funds shall be contributed by members 
of the Trade. 

The Deputy Administrator in his final report to me on said 
amendment to said Supplemental 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 Supplemental Code and the Supple- 
mental 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 organ- 
ization of industry for the purpose of cooperative action of labor 
and management under adequate governmental sanction 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 unemploj^nent, \>y improving 
standards of labor, and by otherwise rehabilitating industry. 

(b) The Supplemental Code as amended complies in all respects 
with the pertinent provisions of said Title of said Act, including 
without limitation Subsection (a) of Section 8, Subsection (a) of 
Section 7, and Subsection (b) of Section 10 thereof. 

(c) The Divisional Code Authority for the Wholesale Wallpaper 
Trade is empowered to present the aforesaid amendment. 

(d) The amendment and the Supplemental Code as amended 
are not designed to and will not permit monopolies or monopolistic 
practices. 

(e) The amendment and the Supplemental 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 
this amendment to the Supplemental Code. 

For these reasons, this amendment has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
August 27, 1934. 

(166) 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE WHOLESxiLE WALLPAPER 
TRADE 

A DIVISION OF THE WHOLESAIJNG OR DISTRIBUTING TRADE 

The Supplemental Code of Fair Competition for the Wholesale 
Wallpaper Trade is hereby amended by adding the following Section 
to Article III ; 

Sec. 2. (a) It being found necessary in order to support the ad- 
ministration of this Supplemental Code and to maintain tlie stand- 
ards 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 obligations out 
of funds which ma}^ be raised as hereinafter provided and which 
shall be held in trust for the purposes of this Supplemental Code ; 

(2) To submit to the Administrator for his approval, subject to 
such notice and 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. 

(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 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 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 Supplemental 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 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 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 
deficiency item for expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Approved Code No. 201B — Amendment No. 2. 
Registry No. 410-A-04. 

(167) 



Approved Code No. 38 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BOILER MANUFACTURING INDUSTRY 

As Approved on August 28, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Boiler 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 Boiler Manufacturing 
Industry, and a notice of opportunity to be heard having been sent 
to 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 
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 
entiret,y as amended. 

Hugh S. Johnson, 
Advmustrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

August 28, 1934. 

(169) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on an amendment to the Code of Fair 
Competition for the Boiler Manufacturing Industry. 

A Notice of Opportunity to be Heard was sent to all members 
of the Industry on August 7, 1934, and no objections were filed 
with the Administration. 

The amendment was presented by the A.B.M.A. Committee of 
Industrial Recovery, as authorized by Article XIII of the Code 
which provides as follows : 

" Such of the provisions of this Code as are not required to be 
included therein by the National Industrial Recovery Act may, 
with the approval of the President, be modified or eliminated upon 
the application of the A.B.M.A. Committee of Industrial Recovery 
as changes in circumstances or experience may indicate." 

Article IX of the Code provided for the designation of the 
A.B.M.A. Committee of Industrial Recovery as a Planning and 
Fair Trade Practice Agency to cooperate with the Administrator 
in the enforcement of the Code, but made no provision for the re- 
election of this Committee. The amendment is designed to remedy 
this situation. 

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 lo said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recover}^ Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare b}^ promoting the organization of industry for the purpose 
of cooperative action 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 purcliasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, includinf^ without limi- 
tation sub-section (a) of Section 3, sub-section (a) or Section 7 and 
sub-section (b) of Section 10 thereof. 

(c) The Code empowers the A.B.M.A. Committee of Industrial 
Recovery to i)reseiit the aforesaid amendment on behalf of the 
Industry as a whole. 

(170) 



171 

(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, 

A dministrator. 
August 28, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
BOILER MANUFACTURING INDUSTRY 

Delete the first sentence of Paragraph 1 of Article IX and substi- 
tute in lieu thereof the following: 

" To facilitate the effective administration of this Code, and to 
provide the Administrator with requisite data as to the observance 
or nonobservance thereof, the A.B.M.A. Committee of Industrial 
Recovery is hereby designated as a Code Authority to cooperate wdth 
the Administrator in the enforcement of this Code; the said Com- 
mittee to be hereafter elected by vote of the members of the Industry 
in an}' fair manner approved by the Administrator." 

Al)pro^■ecl Code No. 38 — Amendment No. 2. 
Registry No. 1103-01. 

(172) 



Approved Code No. 107 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LADDER MANUFACTURING INDUSTRY 

As Approved on August 28, 1934 



ORDER 



Approving Modification of Code of Fair Competition for the 
Ladder 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 modifica- 
tion of the Code of Fair Competition for the Ladder Manufacturing 
Industry, and due consideration having been given thereon and the 
annexed report on said modifications, 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 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: 
C. E. Adams, 

Division Administrator. 

Washington, D.C, 

August -28, 193k. 

(173) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the inodiHcation of the Code of Fair 
Competition for the Ladder Manufacturing Industrj^, which has 
been submitted in accordance witli Executive Order No. 6678. 

This modification enables the Code Authority to incur such rea- 
sonable 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 
necessary to support such budget shall be contributed by the mem- 
bers of the industry. Such contributions are made mandatory by 
this modification. 

The Deputy Administrator in his final report to me on said 
modification 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 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for 
the general welfare by promoting the organization of industry for 
the purpose of cooperative action among trade groups by inducing 
and maintaining united action of labor and management under ade- 
quate governmental sanction and supervision, by eliminating unfair 
competitive practices, by promoting the fullest, possible utilization 
cf the present productive capacity of industries, by avoiding undue 
restriction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and reliev- 
ing unemployment, by improving standards of labor, and by other- 
wise rehabilitating industry. 

(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 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. 

(174) 



175 

(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, 

Administrator. 
August 28, 1934. 



89406—34 2 



MODIFICATION OF CODE OF FAIR COMPETITION FOE 
THE LADDER MANUFACTURING INDUSTRY 

Delete Section (B) of Article VI, and insert in lieu thereof the 
following : 

B. Participation 

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

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

(b) To submit to the Administrator for his approval, subject to 
buch notice and opportunity to be heard as he may deem necessary 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon 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. 

Section 2. 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 Adminis- 
trator. 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, 
siiall 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 mak<^ use of any emblem or insignia of the National 
Recovery Administration. 

Section 3. 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 
Administrator; and no subsequent budget shall contain any defici- 
ency item for expenditures in excess of prior budget estimates ex- 
cept those which the Administrator shall have so approved. 

Approved Code No. 107 — Amendment No. 1. 
Registry No. 304-11. 

(176) 



Approved Code No. 306 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MICA INDUSTRY 

As Approved on August 28, 1934 



ORDEE 



Appkoving 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 amend- 
ment to a Code of Fair Competition for the ^lica Industry, and 
NOTICE OF OPPORTUNITY TO BE HEARD, Administrative 
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 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 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 and the Administrator 
issues a subsequent order to that effect. 

Hugh S. Johnson, 
Adnhinistrator for Industrial Recovery. 

' Approval recommended: 
C. E. Adams, 

Division Administrator. 

Washington, D.C, 

August '28, 193^. 

(177) 



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 pro- 
visions of which follow closely the text of the above mentioned 
Orders, will overcome the existing inadequate provisions. 

Findings 

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

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of 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 
unemplo3'ment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provision of said Title of said Act, including without hmi- 
tation sub-section (aj 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. 

(178) 



179 

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

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

Hugh S. Johnson, 

Administrator. 
August 28, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE MICA INDUSTRY 

Section 6 of Article VI as amended on July 31. 1934, 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 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 he 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 nec- 
essary (1) an itemized budget of its estimated expenses for the 
foregoing purposes, and (2) an equitable basis upon which the 
funds necessary to support such budget shall be contributed by 
members of the industry : 

(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 pro- 
ceedings therefor in its own name. 

(6a) 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 industr}' complying with the fode 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. 

(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 expenditures in excess of prior budget estimates 
except those which the administrator shall have so approved. 

Approved Code No. 800 — Aineiidnu'iit No. 2. 
Registiw No. 1013-13. 

(180) 



Approved Code No. 83 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SOAP AND GLYCERINE MANUFACTURING 
INDUSTRY 

As Approved on August 28, 1934 



ORDEK 



Approving Amendment to the Code of Fair Competition for the 
Soap and Glycerine Manufacturing 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 Amend- 
ments to the Code of Fair Competition for the Soap and Glycerine 
Manufacturing Industry, and an opportunity to be heard having 
been duly afforded to all interested parties and the annexed report 
on said Amendments, containing findings with respect thereto, hav- 
ing 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 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. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

August 28, 1934. 

(181) 



rp:port to the president 

The President, 

The White House. 

Sir : This is to report on the proj^osed Amendments to the Code of 
Fair Competition for the Soap and Glycerine Manufacturing In- 
dustry, approved by j^ou on November 2, 1933, submitted by the Code 
Authority for the Soap and Glycerine Manufacturing Industry 
under date of July 25, 1934. 

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

I find that : 

(a) The Amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the 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 agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provision of said Title of said Act. including without limita- 
tion sub-section (a) of Section 3, sub-section (a) of Section 7 and 
sub-section (b) of Section 10 hereof. 

(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, these Amendments have been ap- 
proved. 

Respectfully, 

Hugh S. Johnson, 

Admmistrator. 
August 28, 1934. 

(182) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE SOAP & GLYCERINE MANUFACTURING INDUSTRY 

Amend Article II, Section 3, to read as follows : 

The term " member of the industry " as used herein includes any 
employer who shall be subject to this Code. 

Amend Article VI, Paragraph B to read as follows : 

Any member of the industry is eligible for membership in the 
Association, and there shall be no inequitable restrictions on such 
membership. 

New Paragraphs to be Added to Article VI as Paragraphs 
C. D. & E. : 

(C) 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 Authoritj^ 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 neces- 
sary (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 ; 

(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. 

(D) Each member of the industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Author- 
itj'', 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. 

(E) The Code Authority shall neither incur nor pay any obli- 
gation substantially in excess of the amount thereof as estimated 
m its approved budget, and shall in no event exceed the total amount 
contained in the approved budget, except upon approval of the 

(183) 



184 

Administrator; and no subsequent budget shall contain any de- 
ficiency item for expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Re-Lettering of Paragraphs in Article VI 

The present Paragraph C to be re-lettered as Paragraph F; and 
the present Paragraph D to be re-lettered as Paragraph G. | 

Approved Code No. 83 — Amondnient No. ]. 
Registry No. 023-03. 



Approved Code No. 140 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WATERPROOFING, DAMPPROOFING, CAULKING 
COMPOUNDS AND CONCRETE FLOOR TREAT- 
MENTS MANUFACTURING INDUSTRY 

As Approved on August 28, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Waterproofing, Dampproofing, Caulking Compounds and Con- 
crete Floor Treatments 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 fov the Waterproofing, Damp- 
proofing, Caulking Compounds and Concrete Floor Treatments Man- 
ufacturing Industry, and opportunity to be heard having been af- 
forded all interestecl parties, and any objections filed having been 
duly considered, and the annexed report on said amendment, contain- 
ing findings with respect thereto, having been made and directed to 
t/li.6 Pi'C'siciGrit ' 

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 perti- 
nent provisions and will promote the polic}'' 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, 
Admrnistrator for Industrial Recovery. 

Approval recommended: 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

August 28, IQSJf. 

(185) 



REPORT TO THE PRESIDENT 

The President, 

The Wh/tc House. 

Sir: An api)lication 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 
Waterproofing, Dampproofing, Caulking Compounds and Concrete 
Floor Treatments Manufacturing Industry, submitted by the Code 
Authority for the Waterproofing, Dampproofing, Caulking Com- 
pounds and Concrete Floor Treatments Manufacturing Industry. 

The purpose and effect of the amenchiient are to authorize the 
Code Authority to submit a budget and method of assessment upon 
which funds shall be contributed by members of the Industry. 

The Deput}' 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 w'ill provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action amon^ trade groups, by inducing and main- 
taining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of the industries, by avoiding undue 
restrictions of production (except as may be temporarily required) 
by increasing tlie 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 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) The Amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

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

Hugh S. Johnson, 

Adininistrator. 
August 28, 1934. 

(186) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE WATERPROOFING, DAMPPROOFING, CAULKING 
COMPOUNDS AND CONCRETE FLOOR TREATMENTS 
MANUFACTURING INDUSTRY 

The Code of Fair Competition for the Waterproofing, Damp- 
proofing, Caulking Compounds, and Concrete Floor Treatments 
Manufacturing Industry shall be amended by deleting Section 4 of 
Article VI and substituting therefor the following : 

"(a) It being 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: 

"(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 purpose 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 
contribution as above set forth by all members of the Industry, and 
to that end, if necessary, to institute legal proceedings therefore in 
its own name. 

"(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 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. 140 — Amendment No. 1. 
Registry No. 1610-06. 

(187) 



Approved Code No. 237 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

ALLOY CASTING INDUSTRY 

As Approved on August 29, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the Alloy 

Casting 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 Alloy Casting Industry, 
and opportunity to be heard thereon having been duly noticed to all 
interested parties, 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 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 : 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

August 29, 1934. 

(189) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on an amendment to the Code of Fair Com- 
petition for the Alloy Casting Industry, the Code having been ap- 
proved by my Order of January 30, 1934. 

Notice of opportunity to be heard on this amendment was duly 
posted to all interested parties providing an opportunity to file 
objections, and no objections were received during this period. 

The Code is amended to provide that willful destructive price 
cutting is an unfair method of competition and is forbidden and the 
amendment further provides for the establishment of minimum 
prices during the period of emergency. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 
said anK'ndmont 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 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 bv 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) Tlie 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 oi' o[)]iross small enteri)rises and will not op- 
erate 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. 

(1S)0) 



191 

For these reasons, therefore, I have approved this amendment, such 
amendment to take effect ten (10) days from the date hereof, unless 
good cause to the contrary is shown and I issue subsequent order to 
that effect. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 
August 29. 1934. 



89406—34- 






AMEIs^DMENT TO CODE OF FAIR COMPETITION FOR 
THE ALLOY CASTING INDUSTRY ' 

Amend Article VII by adding the following new Section : 
Section 2. 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 
complain to the Code Authority that any Hied price constitutes 
unfair competition as destructive p'ice cutting, imperiling small 
enterprise or tending toward monopoly or the imj^airment of code 
wages and working conditions. The Code Authoi'ity shall within 
5 days afford an opportunity to the member filing the price to 
answer such complaint and shall within 14 days make a ruling or 
adjustment thereon. If such ruiijj^ is not concurred in by either 
party to the complaint, all papers shall be lef erred to the Research 
and Planning Division of N.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 con- 
sideration should be given to costs in the determination of pricing 
policies. 

(c) When an emergency exists as to any given product, sale below 
ihe stated minimum price of such product, in violation of Section 3 
hereof, is forbidden. 

Section 3. FJmergency Provisions. — (a) If the Administrator, 
after investigation shall at any time find both (1) that an emer- 
gency has arisen within the industry adversely affecting small enter- 
prises or wages or labor conditions, or tending toward monopoly or 
other acute conditions which tend to defeat the purposes of the act; 
and (2) that the determination of the stated minimum price for a 
specified product within the industry for a limited period is neces- 
sary to mitigate the conditions constituting such emergency and to 
effectuate the purposes of the Act, the Code .\uthority may cause 
an impartial agency to investigate costs and to recommend to the 
Administrator a determination of the stated minmium price of the 
product affected by the emergency and thereupon the Administrator 
may proceed to determine such stated minimum price. 

(b) When the Administrator shall have determined such stated 
minimum price for a specified product for a stated period, which 
price shall be reasonably calculated to mitigate the conditions of 
such emergency and to effectuate the purposes of the National Indus- 
trial Recovery Act, he shall publish such })rice. Thereafter, during 
such stated period, no member of the industry shall sell such speci- 



193 

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 
reconsideration or the Administrator may cause any determinations 
hereunder to be reviewed or reconsidered and appropriate action 
taken. 

Approved Code No. 237 — Amendment Nu. 2 
Registry No. 1201-1-02. 



Approved Code No. 345 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

COLLAPSIBLE TUBE INDUSTRY 

As Approved on August 29, 1934 



ORDER 



Atprovljsg Amendment to Code of Fair Competition for the 
Collapsible Tube Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to the Code of Fair Competition for the Collapsible Tube 
Industry and the annexed report on said amendment, containing 
findings with respect thereto, having been made and directed to 
the President ' 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
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 
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 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 ; provided, 
however, that Section 2 (f ) of Article VI of said Code be, and the 
same is, hereby deleted. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

D (vision A dministrator. 

Washington, D.C, 

August 29, 1934. 

(195) 



REPORT TO THE PRESIDENT 

1 he President. 

The White Houm'. 

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 of Article VI of the Code of Fair Competi- 
tion for the Collapsible Tube Industry, by the Code Authority. 

In order that the Code Authority for the Collapsible Tube Indus- 
try may establish legal obligation making payment of approved 
Code Authority- assessments for Code Administration mandatory, 
and that if such assessments are not paid within a reasonable time 
it may institute legal proceedings therefor, this Industry has sub- 
mitted and respectfuUj'^ requested approval of an amendment where- 
by these purposes may be accomplished. 

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 art 
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 prf)moting 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, b}' 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 re(juired), 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 
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 Collapsible Tube Manufacturers Association was and is 
a trade 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 or 
consents to this amendment. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(196) 



197 

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

For these reasons, therefore, I have approved this amendment to 
become effective fifteen (15) days from the date of the Order unless 
good cause to the contrary is shown to me before that time and I 
issue a subsequent order to that effect. 



Respectfully, 

Hugh S 

AdTninistrator. 
AuGUOT 29, 1934. 



Hugh S. Johnson, 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE COLLAPSIBLE TUBE INDUSTRY 

Delete present Paragraph (d) Section 1 of Article VI, and sub- 
stitute therefor the following : 

(d) 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 A«t, 
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 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. 

3. 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 which the Administrator shall have so approved. 

Approved Code No. 345 — Amendment No. 1. 
Registry No. 1140^01. 

(198) 



Approved Code No. 323 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

DIE CASTING MANUFACTURING INDUSTRY 

As Approved on August 29, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the Die 
Casting 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 Die Casting Manufactur- 
ing Industry, and opportunity to be heard theroori having been duly 
noticed to all interested parties, and no objeciions to said amend- 
ment having been filed, and the annexed report on said amendment, 
containing findings with respect thereto, having been made and di- 
rected 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 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 en- 
tirety as amended. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

August 29, 193^. 

(199) 



REPORT TO THE PRESIDENT 

The President, 

The. White House. 

Sir: This is a report on an amendment to the Code of Fair 
Competition for the Die Casting Manufacturing Industry. Notice 
of opportunity to be heard was sent to all members of the Industry 
on July 11, 1934, and no objections have been filed with the Adminis- 
tration. The amendment, which is attached, was presented by the 
Code Authority. 

The Code of Fair Competition for the Die Casting Manufactur- 
ing Industry provides in Article VI, Section 3, Subsections (b) and 
(c) that the Code Authority is authorized: 

"(b) To represent the Industry in conferring with the President 
or his agents with respect to the administration of this Code arid 
with respect to the National Industrial Recovery Act and any regu- 
lation issued thereunder. 

(c) To present to the Administrator recommendations based on 
conditions in the Industry as they develop from time to time which 
will tend to effectuate the operation of the provisions of this Code 
and the policy of the National Industrial Recovery Act." 

This amendment provides that Section 2 of Article VI be deleted 
and that certain provisions be inserted to facilitate the collection 
from each member of the Industry of his or its equitable con- 
tribution of the expenses of the maintenance of the Code Authority 
subject to rules and regulations pertaining thereto issued by the 
Administrator. 

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 (Resigned 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 in- 
creasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving 

(200) 



201 

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

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

: ; (c) The Code empowers the Code Authority to present the afore- 
said amendment on behalf of the Industry as a whole. 

(d) The amendment and the Code as amended are not designed 
.to and will not permit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 
^ot been deprived of the right to be heard prior to approval of 
said amendment. 

For these reasons, therefore, I have apprbved this amendment. 
Kespectfully, 

Hugh S. Johnson, 
..i ■ . Administrator I, 

August 29, 1934. \; 



AMENDMENT TO CODE OF FAIR COMPETITION FOK 
THE DIE CASTING MANUFACTURING INDUSTRY 

The Code of Fair Competition for the Die Casting Manufacturing 
Industry shall be amended by omitting Section 2, Article VI, and 
inserting in lien thereof the following : 

Section 2. 

A. It being found necessary in order to support the administra- 
tion of this Code and to maintain the standards of fair competi- 
tion established hereund^i' 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 fore- 
going purposes, and 

(b) An equitable basis upon which the funds necessary to sup- 
port 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 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 Admin- 
istration. 

C. The Code Authority shall neither incur nor pay any obligations 
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 expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Approved Code No. 323 — Amendment No. 1. 
Registry No. 1224-1-02. 

(202) 



Approved Code No. 287 — Amendment No. 9 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

GRAPHIC ARTS INDUSTRIES 

As Approved on August 29, 1934 



ORDER 



Approving Amp:ndment of Code of Fair Compeiition for the 
Graphic Arts Industries 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recover}' Act, approved June 16, 193r>, for approval of an amend- 
ment to a Code of Fair Competition for the Graphic Arts Indus- 
tries, 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. 654&-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 oixler 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 InduHtiial Recovery. 

Approval recommended : 
George Buckley, 

Division Administrator. 

Washington, D.C, 

August 29, 193 If. 

(203) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the proposed modification for the Code of 
Fair Competition for the Graphic Arts Industries as approved by 
3'^ou on Februar}^ 17. 1934. A Notice of Opportunity to be Heard 
was issued on July 7, 1934, and full opf)ortunity was given to all 
interested parties to file criticisms of, objections to or suggestions 
concerning said modification. 

The proposed modification consists of a substitution in the trade 
practice provisions set forth in the form of an Appendix to the Code. 

The proposed modification does not in any way affect the labor 
provisions of the Graphic Arts Code. 

The Deputy Administrator in his final report to me on said 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 to said Code and the Code as modified are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
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 competitive practices, by promoting the fullest possible utili- 
zation of the present productive capacity of industries, by avoiding 
undue restriction of production (except as may be temporarily 
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, an<l 
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 National Graphic Arts Co-ordinating Cominittee was 
and is the highest governing body of the Graphic Arts Code and 
truly representative of the aforesaid industry, and has applied for 
this modification. 

(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. 

(2<»4) 



205 

(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. 

I believe the modification to be fair to the consumer and to the 
industry, and for these reasons, therefore, I approve this modi- 
fication. 

Respectfully, 

Hugh S. Johnson, 

Administrator. ■ 
August 29, 1934. 



MODIFICATION TO CODE OF FAIR COMPETITION FOR 
THE (GRAPHIC ARTS INDUSTRIES 

The modification proposed is to delete the provision for " Time 
Discount " under Item No. 4, Appendix of Industry No. A-4, Graphic 
Arts Code, sub-head " Supertinish Cover Manufacturing " and to 
submit in lieu thereof the following : 

" On orders received on or before February 15 and for manufac- 
turing prior to July 1 of the same year, accompanied by a dummy, 
approved sketch, and complete manufacturing instructions, the manu- 
facturer may allow a special discount of five per cent (5%), pro- 
vided the order is shipped and billed upon completion and provided, 
further, that the invoice is paid on the cash discount date. 

Approved Code No. 287 — Amendment No. 9. 
Registry No. 599-33. 

(200) 



Approved Code No. 267 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

USED TEXTILE BAG INDUSTRY 

As Approved on August 29, 1934 



ORDER 



Approving Amendments to Code of Fair Competition for the 
Used Textile Bag Industrt 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of amendments 
to a Code of Fair Competition for the Used Textile Bag 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 No. 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate, by reference, said an- 
nexed report and do find that said amendments and the Code as con- 
stituted after being amended comply in all respects with the perti- 
nent provisions and will promote the policy and 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 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, 
AdTninistratOT for Industrial Recovery. 

Approval recommended : 
Robert L. Houston, 

Division Administrator. 

Washington, D.C, 

August 29, 19S4. 

80406—34 4 (207) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on certain amendments to the Code of Fair 
Competition for the Used Textile Bag Industry, and on the hear- 
ing conducted thereon in Washington, D.C., May 17, 1934. 

The first amendment provides a tolerance for peak periods for 
the entire Industry, with payment of time and one-third for 
overtime. 

The second amendment clarifies the hour provisions relating to 
partnerships. 

The third amendment establishes more definitely the procedure 
for the support of the administration of this Code. 

The fourth amendment increases the powers and duties of the 
Code Authority relative to arbitration of disputes and standard- 
ization of products of the Industry. 

The fifth amendment deals with cost and price cutting, emergency 
provisions, and cost finding. 

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

I find that : 

(a) The amendments to said code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for 
the general welfare by promoting the organization of industry for 
the purpose of cooperative action among trade groups, by inducing 
and maintaining united action of labor and management under 
adequate governmental sanctions and supervision, by eliminating 
unfair competitive practices, b}' promoting the fullest possible 
utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), by increasing the consumpticm of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unem[)l<)yment, by im^Ti-oving standards of 
labor, and by otherwise rehabilitating industry. 

(b) The Code as amended coujiilies in all respects with the perti- 
nent provision of said Title of said Act, including without limita- 
tion sub-section (a) of Section 3, sub-section (a) of Section 7 and 
sub-section (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendments on l)ehalf of the Industry as a whole. 

(d) The amendments and the Code as amended are not designated 
to and will not jjermit monopolies or monopolistic practices. 

(208) 



I 



209 

(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. 

Hugh S. Johnson, 

Administrator.- 
August 29, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE USED TEXTILE BAG INDUSTRY 

Article III, Section 1, shall be amended by changing the period 
at the end of this section to a semi-colon and adding the following: 
" provided that during peak seasons not to exceed eight (8) consecu- 
tive weeks in any one year employees ma}'^ work not more than 
forty-eight (48) hours per weeic and provided further that all 
hours in excess of the maximum hours provided herein for the 
various classes of employees shall be compensated at not less than 
time and one-third the normal rate of pay." 

Article III shall be amended by adding a new section as follows : 

'' 5. Where a membei- of this Industry is a partnership, not more 
than one individual of such partnership shall work on any of the 
operations of the Industry, except office functions, in excess of the 
maximum hours provided herein." 

Section 5 of Article VI shall be deleted and the following sub- 
stituted therefor : 

"5. (a). It being found necessary, in order to support the admin- 
istration of this Code and to maintain the standards of fair com- 
petition established hereunder and to effectuate the policy of the 
Act, the Code Authority is authorized : 

" (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. 

" (I) an itemized budget of its estimated expenses for the fore- 
going purposes, and 

" (II) an equitable basis upon which the funds necessary to sup- 
port 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 Industr3^ and to 
that end, if nece.ssary, to institute legal proceedings therefor in its 
own name. 

" (b) Each iiifuiber 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 
i-egulations i)ertaining therto issued by the Administrator. Only 
members of the Industry complying with the Code and contributing 
to the expenses of its administration as hereinabove provided, un- 
less duly exeuipteil from making such contribution, shall be en- 
titled to |)aiticipate in the selection of members of the Code Au- 
thoi-ity or to receive the benefits of any of its voluntary activities or 
to make use of any emblem or insignia of the National Recovery 
Administriilion. 

(210) 



211 

" (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 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." 

Article VI shall be amended by adding new Sections as follows: 

"' 7. In addition to those specified in Section 2 of this Article, the 
Code Authority shall have the following powers and duties: 

" (a) To provide appropriate facilities for arbitration of con- 
tractual disputes, excepting labor disputes, and subject to the ap- 
proval of the Administrator, to prescribe rules of procedure and 
rules to effect compliance with awards and determinations; 

" (b) To prepare standard classifications and specifications for 
the products of the Industry, which, on approval of the Adminis- 
trator, shall be binding on all members of the Industry in the pur- 
chase and sale of the products of the Industry. 

" 8. Cost and Price Cutting. — The standards of fair competition 
for the Industry with references to pricing practices are declared 
to be as follows : 

" (a) Wilfully destructive price cutting is an unfair method of 
competition and is forbidden. 

" (b) Wlien no declared emergency exists as to any given prod- 
uct, there is to be no fixed minimum basis for prices. It is intended 
that sound cost estimating methods should be used and that con- 
sideration 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 9 hereof, is forbidden." 

" 9. Emergency Provisions. — (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 ef- 
fectuate 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 emergenc}^ and thereupon the Administrator 
may proceed to determine such stated minimum price. 

''(b) When the Administrator shall have determined such stated 
minimum price for a specified product for a stated period, which 
price shall be reasonably calculated to mitigate the conditions of 
such emergency and to effectuate the purposes of the National Indus- 
trial Recovery Act, he shall publish such price. Thereafter, during 
such stated period, no member of the Industry shall sell such specified 
products at a net realized price below said stated minimum price 
and any such sale shall be deemed destructive price cutting. From 
time to time, the Code Authority may recommend review or recon- 



212 

sideration or the Administrator may cause any determinations here- 
under to be reviewed or reconsidered uiid appropriate action taken. 

" 10. Cost Findings. — The Code Authority shall cause to be formu- 
lated methods of cost finding and accounting capable of us^e 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 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." 

Article VII shall be amended by adding a new Section as follows : 
" 9. Cancellation of any contract or order for the purchase or selfe 
of any of the products of the Industry without consideration or with- 
out sufficient legal cause cognizable either at law or at equity." 

Approved Code No. 267 — Amendment No. 1. 
Registry No. 203/3/03. 



Approved Code No. 446 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CANNING INDUSTRY 
As Approved on August 30, 1934 



OEDER 



Modification of Code of Fair Competition for the Canning 

Industry 

WHEREAS, by Executive Order dated May 29, 1934, the President 
approved the Code of Fair Competition for the Canning Industry 
subject to the following conditions, among others : 

" That the Industry shall designate a committee whose membership 
shall be subject to the approval of the Administrator and who shall 
cooperate with the Administrator in the formulation of standards 
of quality for products of the Industry and to make recommendations 
to the Administrator within ninety (90) days for the inclusion in 
said Code of provisions with respect to such standards and labelling 
requirements," 
and 

WHEREAS, the Administrator has approved the designation of 
such a committee, and it has requested further time within which to 
make its recommendations, 

NOW, THEREFORE, I, Hugh S. Johnson, Administrator for 
Industrial Recovery, pursuant to authority vested in me by Execu- 
tive Orders of the President, including Executive Order No. 654B-A, 
dated December 30, 1933, and otherwise, hereby order that said 
order of approval be modified by striking out the words " ninety 
(90) days " in the first condition therein contained and inserting in 
lieu thereof the words " one hundred and twenty (120) days." 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Armin W. Riley, 

Division Administrator. 

Washington, D.C, 

August 30, 193Jf. 

Approved Code No. 446 — Amendment No. 1. 
Registry No. 105-03. 



Approved Code No. 201E — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THB 

WHOLESALE MILLINERY TRADE 

As Approved August 30, 1934 



ORDER 



Approving Amendments to Supplementary Code of Fair Competi- 
tion FOR the Wholesale} Millinery 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 amendments 
to a Supplementary Code of Fair Competition for the Wholesale 
Millinery 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 amendments, containing 
findings with respect thereto, having been made and directed to the 
x^rpsidpnl* * 

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 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 modified to include an approval of said Code 
in its entirety as amended. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Robert L. Houston, 

Division Adnninistrator. 

Washington, D.C, 

August 30^ 193^. 

(215) 



REPORT TO THE PRESIDENT 

The President. 

The White House. 

Sir: This is a report of the Hearin*^ on certain amendments to 
the Supplementary Code of Fair Competition for the Wholesale 
Millinery Trade, a Division of the Wholesaling or Distributing 
Trade, conducted in Room D of the Washington Hotel, Washington, 
D.C., on July 20, 1934. The amendments which are attached were 
presented by the Divisional Code Authority for the Wholesale 
Millinery Trade and have the approval of the Board of Directors 
of the Associated Wholesale Distributors of Ladies', Misses' and 
Children's Hats, Inc. 

The annexed amendments deal largely with the clarification of 
the definition of wholesaler or distributor under the Supplementary 
Code of Fair Competition for the Wholesale Millinery Trade as it 
relates to wholesalers or distributors of Hat Bodies and Millinery 
Supplies. Proper representatives were present at the Hearing. 

The remaining amendments encompass administrative provisions 
to accommodate certain groups in the Trade and further provides 
for standard administrative provisions recommended by the Ad- 
ministration since the approval of the Supplementar}' Code of Fair 
Competition for the Wholesale Millinery Trade. 

Only one amendment pertains to fair trade practices and it appears 
to be in no way objectionable. 

FINDINGS 

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

I find that : 

(a) The amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 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 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 agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(216) 



217 

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

(c) The Associated Wholesale Distributors of Ladies', Misses' and 
Children's Hats, Inc., was and is a trade association truly representa- 
tive of the aforesaid Trade and that said association imposed and im- 
poses no inequitable restrictions on admission to membership therein 
and consents to 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 oper- 
ate to discriminate against them. 

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

For these reasons these amendments have been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrat or. 
August 30, 1934. 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE WHOLESALE MILLINERY 
TRADE 

A DIVISION OF THE WHOLESALING OK DISTRIBUTING TRADE 

The Supplementary Code of Fair Competition for the Wholesale 
Millinery Trade is hereby amended by striking out Article I as it 
now reads and siibstitutin<r the following: 

Article 1 — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act this Supplementary Code is established as a Code of 
Fair Competition for the Wholesale Millinery Trade pursuant to 
Article VI, Section 1 (c) of the General Code of Fair Competition 
for the Wholesaling or Distributing Trade, approved b}'^ the Presi- 
dent of the LTnited States on January 12, 1934. All provisions of 
said General Code which are not in conflict with the provisions of. 
this Supplementary Code are hereby specifically incorporated by 
reference in this Supplementary Code and made part hereof. Such 
provisions of this Supplementary Code are the standards of Fair 
Competition and are binding upon every member of said Wholesale 
Millinery Trade. 

The definition of '' Wholesaler " or " Distributor " under Article 
II is hereby amended to read as follows : 

Wholesaler or Distributor. — The term " Wholesaler " or '* Distribu- 
tor " as used herein, is defined to mean any individual, partner- 
ship, association, corjDoration or other firm or division thereof, defi- 
nitely organized to render and whose business is the rendering of a 
general distribution service to retailers generally, which bu^s and 
maintains at his or its place of business a stock of an}'^ one or more 
of the following lines, but without limitation : 

(a) Trimmed ladies' hats; 

(b) ITntrJmmed ladies' hats; 

(c) Trimmed misses' hats; 

(d) Untrimmed misses' hats; 

(e) Trimmed children's hats; 

(f) Untrimmed children's hats; 

(g) Hat bodies; 

(h) Incidental merchandise pertaining thereto, such as material- 
used in nuiking or trimming any of the above listed items; 
and which through salesmen, advertising and/or sales promotion 
devices sells to retailers generally. 

(218) 



219 

There shall be inserted under Article II. the following definition 
of a wholesaler or distributor of hat bodies and millinery supplies: 

Wholesaler or Distributor of Hat Bodies and Millinery Sup- 
plies. — The term " Wholesaler " or " Distributor " of Hat Bodies 
and Millinery Supplies as used herein, is defined to mean any indi- 
vidual, partnership, association, corporation, or other firm or defi- 
nitely organized division thereof, which buys and maintains at his 
or its place of business a stock of any one or more of the following 
lines, but without limitation : 

(a) Hat bodies; 

(b) Millinery supplies; 

(c) Materials used in making, trimming or designing ladies, 
misses and/or children's hats; 

and which through salesmen and/or sales promotion devices sells 
to retailers but which does not sell in significant amounts to ultimate 
consumers. 

Section 1 (b) of Article III is hereby amended to read as follows: 

(b) Such Divisional Code Authority shall be composed of four- 
teen members, nine of whom shall be members of the Associated 
Wholesale Distributors of Ladies', Misses' and Children's Hats, Inc., 
and selected by the Board of Directors thereof, with due regard 
for their residence in the major markets of the Trade, and two 
members shall be selected in a manner to be approved by the Admin- 
istrator to represent those engaged in the Trade who are not mem- 
bers of the aforesaid Association, and three members to represent 
the Hat Body and Millinery Supply Distributors, such representa- 
tives to be selected as hereinafter provided : 

(1) The Board of Directors of the Associated Wholesale Distrib- 
utors of Ladies', Misses' and Children's Hats, Inc., shall nominate 
ten members engaged principally in the Hat Body and Millinery 
Supply Distributing Trade who are not members of the Associated 
Wholesale Distributors of Ladies', Misses' and Children's Hats, Inc., 
and shall prepare ballots listing such names, and in addition, such 
ballots shall contain three blank spaces in which any member of the 
Hat Body and Millinery Supply Distributing Trade may write his 
personal choice. Such ballots shall be mailed to every member of 
such Trade ascertainable by diligent search by the Board of Direc- 
tors of the Associated Wholesale Distributors of Ladies', Misses' and 
Children's Hats, Inc. 

(2) Fifteen days after the mailing of these ballots the Board of 
Directors of the Associated Wholesale Distributors of Ladies', 
Misses' and Children's Hats, Inc., shall publicly open and count the 
votes which it has received. The three candidates receiving the 
largest number of votes shall be declared elected. The three candi- 
dates receiving the next largest number of votes may be declared 
alternates as provided for in Paragraph C, Section 1 of Article III. 

There shall be added to Section 1 of Article III an additional 
paragraph, to be known as Paragraph (c) to read as follows: 

(c) Alternates may be selected to act for members of the Divi- 
sional Code Authority in the same manner and from the same group 
as the members of the Divisional Code Authority are selected. 



220 

There shall be added to Section 2 of Article III the following 
paragraph to be known as Paragraph (e) : 

(e) There shall be created a Committee of five who shall act in all 
matters peculiar to the Hat Body and Millinery Supply Trade, and 
wdio shall report their findings to the Divisional Code Authority for 
final action. The members of this Committee shall be selected in the 
following manner : 

(1) Three members of the Divisional Code Authority shall be 
selected by the Chairman of the Divisional Code Authority to repre- 
sent tlie members of the Wholesale Millinery Trade who are also 
engaged in the selling of Hat Bodies and Millinery Supplies. 

(2) Two members of the Divisional Code Authority shall be se- 
lected by the Chairman of the Divisional Code Authority to repre- 
sent those engaged principally in tlie Hat Body and Millinery Supply 
Trade. 

There shall be added to Section 2 of Article III the follow-ing para- 
graj)h to be known as Paragraph (f ) : 

(f) (1) It being found necessary in oriler to support the admin- 
istration of this Supplementary 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 tlie purposes of this 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 it<?jnized budget of its estimated expenses for the foregoing 
purposeSj.and (2) an equitable basis upon ^yhich the funds necessary 
to support such budget shall be contributed bv members of the 
Trade. 

c. After such budget and basis of contribution have been approved 
by the Administrator, to determine and obtain equitable contribu- 
tion as above set forth by all 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 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 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 jDarticipate 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. 

(;i) The Divisional Code Authority shall neither incur nor pay 
any obligation 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 tlie approved budget except upon approval of 



221 

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. 

There shall be added to Section 2 of Article III the following 
paragraph to be known as Paragraph (g) : 

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

There shall be added to Article IV the following Section to be 
known as Section V : 

Section V. Shipment of Goods. — All shipments by members of 
the Trade shall be made f.o.b. city of wholesaler, except under cir- 
cumstances as may be defined by the Divisional Code Authority, 
subject to the approval of the Administrator. 

Approved Code No. 201E — Amendment No. 1. 
Registry No. 1625-59N. 



Approved Code No. 17 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

AUTOMOBILE MANUFACTURING INDUSTRY 

As Approved on August 31, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Amendment to Code of Fair Competition for the Automobile 
Manufacturing Industry 

An application having been duly made in behalf of the Automobile 
Manufacturing Industry, pursuant to and in full compliance with the 
provisions of title I of the National Industrial Recovery Act, ap- 
proved June 16, 1933, and the provisions of the Code of Fair Com- 
petition for the Automobile Manufacturing Industry duly approved 
on August 26, 1933, for my approval of an amendment to said Code 
of Fair Competition for the Automobile Manufacturing Industry, 
and the Administrator having found that the said proposed amend- 
ment complies in all respects with the pertinent provisions of title I 
of said act and that the requirements of clauses (1) and (2) of sub- 
section (a) of section 3 of said act have been met, and the Adminis- 
trator having recommended approval of such amendment : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the findings and recommendations 
of the Administrator and do order that the said application be and 
it is hereby approved, and that, effective immediately, the said Code 
of Fair Competition for the Automobile Manufacturing Industry be 
and it is hereby amended as follows : 

In article I. the seventh paragraph, which has heretofore read as 
follows : 

" The term ' expiration date ' as used herein means September 4, 
1934, or the earliest date prior thereto on which the President shall 
by proclamation or the Congress shall by joint resolution declare that 

89406 — 34 5 (223) 



224 

the emergency recognized by section 1 of the National Industrial 
Recovery Act has ended." 

shall be modified to read as follows: 

" The term ' expiration date ' as used herein means November 3, 
1934, 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 the National Industrial 
Recovery Act has ended." 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

Administrator. 

The White House, 

August 31, 193Jf. 

Approved Code No. 17 — Amendment No. 3. 
Registry No. 1403-1-04. 



I 



i 



Approved Code No. 201D — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

BEAUTY AND BARBER EQUIPMENT AND 
SUPPLIES TRADE 

As Approved on August 31, 1934 



ORDER 



Approving Amendments to Supplementary Code of Fair Compe- 
tition FOR THE Beauty and Barber Equipment and Supplies 
Tbade 

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 amendments 
to a Supplementary Code of Fair Competition for the Beauty and 
Barber Equipment and Supplies Trade to the Code of Fair Competi- 
tion for the Wholesaling or Distributing Trade, and hearings having 
been duly held thereon, and the annexed report on said amendments, 
containing findings with respect thereto, having been made and 
Ciiypp^pfi i'o ^np r T*p^iriPTii" * 

NOW, THEREFORE* on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order 6543-A, dated December 30, 
1933, and otherwise, do hereby incorporate by reference, said an- 
nexed report, and do find that said amendments and the Supple- 
mentary Code as constituted after being amended comply 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 
amendments be and they are hereby approved and that the previous 
approval of said Supplementary Code is hereby modified to include 
an approval of said Supplementary Code in its entirety as amended, 
such approval and such amendment of Article II, Section 7 ; Article 
III, Section 3; Article IV, Section 2; Article V, Section 1, Sub- 
section (h) ; Article VII and Article VIII to take effect fifteen (15) 

(225) 



226 

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 : 
Harry C. Carr, 

Acting Division Administrator. 

Washington, D.C, 

August 31^ lOSJf. 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report of the Hearing on amendments to the Supple- 
mentary Code of Fair Competition for the Beauty and Barber 
Equipment and Supplies Trade, a division of the Wholesalino; or 
Distributing Trade, said Supplementary Code being approved Code 
No, 201 — Supplement No. 4 and approved by me on April 4, 1934. 
The Hearing on these amendments was held in the Cabinet Room 
of the Willard Hotel on Thursday, July 19, 1934. 

This Supplementary Code has been amended by changing the defi- 
nition of the term " consignment " in Section 7 of Article II so that 
such section now reads as follows : 

" Section 7. The term ' consignment ' as used herein shall mean 
leaving any merchandise (except sundries) with a customer more 
than six days, the title to remain in the member of the Trade until 
such time as the customer shall purchase or return the merchandise." 

This Supplementary Code has also been amended by adding to 
Section 3 of Article III a new subsection reading as follows: 

"(d) To suggest from time to time modifications of, and/or amend- 
ments to this Supplementary Code and to assent to such modifica- 
tions and/or amendments and to the Supplementary Code in its final 
form as modified and/or amended." 

This Supplementary Code has also been amended by adding a new 
section to Article III, which section authorizes the Code Authority 
to submit an itemized budget and an equitable basis of assessment 
and to collect such assessment from members of the Trade in ac- 
cordance with the terms of your Executive Order No. 6678, dated 
April 14, 1934. 

This Supplementary Code has also been amended by changing 
the definition of a " professional package " contained in Section 2 
of Article IV, so that a " professional package " is now defined as 
follows : 

"A professional package is defined as any article of the industry 
packed in a single package when the said package is labeled in 
large, distinctive letters, ' Professional Package for Professional Use 
Only'." 

This Supplementary Code has also been amended by adding to 
subsection (h) of Section 1 of Article V a new sentence which reads 
as follows: 

" The foregoing provisions of Subsection (h) shall not apply to 
floor or salesmen's samples that have been on display or used for 
demonstrating purposes for a period of six months or longer, in 
which cases a member of the Trade may sell such damaged or deterio- 
rated articles at not to exceed a twenty per cent discount from the 
price filed by a member of the Trade in accordance Avith the provi- 
sions of Article V, Section 1, Subsection (a) of this Supplementary 
Code." 

(227) 



228 

This Supplementary Code has also been amended by adding a new 

Article VII which reads as follows: 

"Articli: A'II — Prohibition Against Use of Subterfuge 

" No member of the Trade shall use any subterfuge to frustrate 
the spirit and intent of this Supplementary Code or the General 
Code, which spirit and intent are among other things, to increase 
employment by universal covenant, to remove ol)structions to com- 
merce, to sliorten hours of work, and to raise wages to a living basis." 

This Supplementary Code has also been amended by changing 
■what was formerly Article VII to Article VIII. 

The Deputy Administrator in his final report to me on said amend- 
ment to said Supplementary 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 Supplementary Code and the Sup- 
plementary Code as amended are well designed to promote the poli- 
cies and i)urposes 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 organiza- 
tion of industry for the purpose of cooperative action of labor and 
management under adequate governmental sanction and supervision, 
by eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) The Supplementary 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 
Secton 7, and Subsection (b) of Section 10 thereof. 

(c) The Beauty and Barber Supply Institute, Incorporated, was 
and is a trade association trul)'^ representative of the aforesaid Trade 
and that said association imposed and imposes no inequitable re- 
strictions on admission to membership therein and consents to these 
amendments. 

(d) The amendment and the Supplementary Code as amended 
are not designed to and will not permit monopolies or monopolistic 
])ractices. 

(e) The amendment and the Supplementary Code as amended 
are not designed to and will not eliminate or oppress small enter- 
prises 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 these 
amendments to the Supplementary Code. 

For these reasons these amendments to the above-named Supple- 
mentary Code have been approved. 
Respectfully, 

Hugh S. Johnson, 
August 31, 1934. AdTrdnistrator. 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE BEAUTY AND BARBER 
EQUIPMENT AND SUPPLIES TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

The Supplementary Code of Fair Competition for the Beauty 
and Barber Equipment and Supplies Trade is hereby amended as 
follows : 

Article II, Section 7, is amended to read as follows : 

Section 7. The term " consignment " as used herein shall mean 
leaving any merchandise (except sundries) with a customer more 
than six days, the title to remain in the member of the Trade until 
such time as the customer shall purchase or return the merchandise. 

Article III, Section 3, is amended by inserting subsection (cl) to 
read as follows : 

(d) To suggest from time to time modifications of and/or amend- 
ments to this Supplementary Code and to assent to such modifica- 
tions and/or amendments and to the Supplementary Code in its 
final form as modified and/or amended. 

Article III is amended by adding thereto a new Section reading 
as follows : 

Section 6. (a) It being found necessary in order to support the 
administration of this Supplementary 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 obligations out of 
funds which may be raised as hereinafter provided and which shall 
be held in trust for the purposes of this Supplementary 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 
Trade; 

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 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 such members of the Trade complying with the Supplementary 
Code and contributing to the expenses of its administration as here- 
inabove provided, unless duly exempted from making such contribu- 

(229) 



230 

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 obligation 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 item for expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Article IV, Section 2, is amended by changing the definition of a 
" professional package " to read as follows : 

A professional package is defined as any article of the industry 
packed in a single package when the said package is labeled in large, 
distinctive letters, " Professional Package For Professional Use 
Only ;'. 

Article V, Section 1, Subsection (h), is amended by adding the 
following sentence after proviso (2) : 

The foregoing provisions of Subsection (h) shall not apply to 
floor or salesmen's samples that have been on display or used for 
demonstrating purposes for a period of six months or longer, in 
which cases a member of the Trade may sell such damaged or 
deteriorated articles at not to exceed a twenty per cent discount from 
the price filed by a member of the Trade in accordance with the 
provisions of Article V, Section 1, Subsection (a) of this Supple- 
mentary Code. 

This Supplementary Code is further amended by inserting the 
following as Article VII, and changing Article VII to Article VIII : 

Article VII — Prohibition Against Use of Subterfuge 

No member of the Trade shall use any subterfuge to frustrate 
the spirit and intent of this Supplementary Code or the General 
Code, which spirit and intent are, among other things, to increase 
employment by universal covenant, to remove obstructions to com- 
merce, to shorten hours of work, and to raise wages to a living basis. 

Approved C!ode No. 201D — Amendment No. 1. 
Registry No. 1606-04. 



Approved Code No. 135 — ^Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CIGAR CONTAINER INDUSTRY 

As Approved on August 31, 1934 



ORDER 



Approving Modification of Code of Fair Competition for Tfifi 
Cigar Container Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Hecovery Act, approved June 16, 1933, for approval of a modifica- 
tion to the Code of Fair Competition for the Cigar Container 
Industry, and due consideration having been given 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 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 pur- 
poses of said Title of said Act, and do hereby order that said modi- 
fication 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, provided, however, that Article VII, 
Section B, be and it is hereby deleted. 

Hugh S. Johnson, 
Administrator for iTvdiistrial Recovery. 

Approval recommended : 
C. E. Adams, 

Division Administrator. 

Washington, D.C, 

August 31, 1934. 

(231) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the modification to the Code of Fair 
Competition for the Cigar Container Industry, which has been sub- 
mitted in accordance with Executive Order No, 6678. 

This modification enables the Code Authority to incur such rea- 
sonable 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 
necessary to support such budget shall be contributed by the mem- 
bers of the industry. Such contributions are made mandatory by 
this modification. 

The Deputy Administrator in his final report to me on said modi- 
fication of said code having found as herein set forth and on the 
basis of all the proceedings in this matter : 

I find that : 

(a) The modification of said code and the code as modified are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the gen- 
eral welfare by promoting the organization of industry for the 
purpose of cooperative action among trade groups by inducing and 
maintaining united action, of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of 
the present productive capacity of industries, by avoiding undue 
restriction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and reliev- 
ing unemployment, by improving standards of labor, and by other- 
wise rehabilitating industry. 

(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-secton (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. 

(232) 



233 

(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, 

AdnniTiistrcbtor. 
August 31, 1934. 



MODIFICATION OF CODE OF FAIR COMPETITION FOR 
THE CIGAR CONTAINER INDUSTRY 

Modify Article VI by adding thereto as Section (f ) the following 
amendment : 

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

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

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

(c) After such budget and basis of contribution have been ap- 
jDroved 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 mem- 
bers of the Inckistry 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 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 
contained in the approved budget, except upon approval of the 
Administrator; and no subsequent budget shall contain any defi- 
ciency item for expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Approved Code No. 135 — Amendment No. 1. 
Registry No. 303-02. 

(234) 



Approved Code No. 181 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

COMMERCIAL REFRIGERATOR INDUSTRY 

As Approved on August 31, 1934 



ORDER 



Approving Modifications of Code of Fair Competition for the 
Commercial Refrigerator 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 modifications 
to a Code of Fair Competition for the Commercial Refrigerator In- 
dustiy, and hearings having been duly held thereon and the annexed 
report on said modih'cations, 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 an- 
nexed rejjort and do find that said modifications and the Code as 
constituted after being modified comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said modifications 
be and they are hereby approved, and that the previous approval of 
said Code is hereby modified to include an approval of said Code in 
its entirety as modified, such approval and such modifications to 
take effect fifteen (15) daj^s from the date hereof, unless good cause 
to the contrary is shown to the Administrator before that time and 
the Administrator issues a subsequent order to that effect. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Division Administrator. 

Washing'Ton, D.C., 

August 31, 1934. 

(235) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on Modifications of the approved Code of 
Fair Competition for the Commercial Refrigerator Industry. A 
public hearing was duly held thereon in Washington, D.C., on 
May 16, 1934 in accordance with the provisions oi the National 
Industrial Recovery Act. 

The Assistant Deputy Administrator in his final report to me on 
the modification of the Code of Fair Competition for the Com- 
mercial Refrigerator Industry having found as herein set forth 
and on the basis of all the proceedings in this matter : 

I find that : 

(a) Modifications, numbers 2, 3, 4, 6, 8 and numbers 10 to 13 
inclusive, to said Code and the Code as modified are well designed 
to promote the policias and purposes of Title I of the National 
Industrial Recovery Act includin^^ 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 wel- 
fare 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 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), 
b}'^ increasing the consumption of industrial and agricultural 
l^roducts 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 limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The modifications and the Code as modified are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) The modifications and the Code as modified are not designed 
to and will not eliminate or oppress small enterprises and will 
not operate to discriminate against them. 

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

Said modifications are accordingly approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
August 31, 1934. 

(236) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE COMMERCIAL REFRIGERATOR INDUSTRY 

Amendments nos. 2, 3, 4, 6, 8 and nos. 10 to 13, inclusive : 
Amend Section 2 of Article II to read as follows: 
" Section 2. The term ' Commercial Refrigerator ' or ' product of 
the industry ' as used herein is defined to mean and include any 
insulated room, box, chest, cabinet, display case or counter (but 
not part of the fixed construction) equipped with or for any form 
of refrigeration or equipment with or for any type of refrigerating 
unit or agent for storage and/or display of perishable food or other 
products under refrigeration, in meat markets, grocery and delica- 
tessen stores, florists' shops, hotels, restaurants, clubs, institutions, 
and such similar establishments where such food or other products 
are retained or stored for the purpose of sale or service, except 
that beverage coolers and electric or gas ice cream cabinets are not 
included as products of this industry and further, provided, that 
household refrigerators when manufactured and sold by a member 
of this industry for commercial use are also not included as a product 
of this industry." 

3. 

Amend Section 6 of Article IV to read as follows: 
" Section 6. Evasion through Reemployment. — No employee now 
employed at a rate in excess of the minimum shall be discharged 
and reemployed or replaced by another at a lower rate for the pur- 
pose of evading the provisions of this Code." 



Add to Article V the following : 

" Section 8. Operations performed hy Members. — All members of 
the Industry shall comply with all provisions relating to hours in 
this Code, in the performance by them, him or her of manual labor 
operations." 

6. 

Omit " Section 8 of Article VI." Renumber original Sections 9 
and 10 to read Sections 8 and 9 respectively and add to Article VI 
subparagraph (i) of Section 9 and new Sections 10 and 11 as 
follows : 

(i) 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 : 

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

(237) 



238 

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

(bb) 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 supi)ort such budget shall be contributed by members of the 
Industry ; 

(cc) After such budget and basis of contributions have been ap- 
proved by the Administrator, to determine and obtain equitable con- 
tributions as above set forth by all members of the Industry, and to 
that end, if necessary, to institute legal proceedings therefor in its 
own name. 

•' Section 10. Each member of the industry shall pay his or its 
equitable contribution to the expenses of the maintenance of the 
Code Authority, determined as hereinabove provided, and subject to 
rules and regulations pertaining thereto issued by the Administrator- 
Only members of the industry complying with the Code and con- 
tributing to the expenses of its administration as herein provided, 
unless duly exempted from making such contributions, shall be en- 
titled to participate in the selection of members of the Code Author- 
ity or to receive the benefits of any of its voluntary activities, or to 
make use of any emblem or insignia of the National Recovery 
Administration." 

" Section 11. 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 which the Administrator shall have so approved," 

8. 

Add to Article VII the following: 

" Rule 17. No member of the industry shall combine quotations, 
contracts, invoices or receipts for any product of the industry with 
any quotation, contract, invoice or receipt for any other material, 
labor or service for the purpose and with the intent or effect of con- 
cealing the true selling price of the product of the industry." 

10. 

Add to Article VIII the following: 

" Section 8. Any contract for the sale or transfer of any product 
of the industry which does not provide for payment in full within 
ninety (90) days after the date of shipment of such product sold is 
an installment transaction, and shall be subject to all rules or pro- 
visions governing installment sales contained in this Code." 

11. 

Amend Section 1 of Article VIII by deleting the word " con- 
sumer " in the ninth (9th) line, page 453 of the Code. (Typograph- 
ical error in original draft of Code.) 



239 
12. 

Amend Section 7 (b) of Article VIII to read: 
"Cash amounting to at least twenty percent (20%) of the net 
sales price to be paid on or prior to delivery to the purchaser." 

13. 

Ainend Section 7 (c) of Article VIII to read: 
" Balance due on any contract of sale to be paid in not more than, 
twenty-four (24) months from date of shipment." 

Approved Code No. 181 — Amendment No. 1. 
Registry No. 1328-02. 



S«40G— 34- 



Approved Code No. 322 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

EARTHENWARE MANUFACTURING INDUSTRY 

As Approved on August 31, 1934 



OKDER 



Approving Amendment of Code of Fair Competition for the 
Earthenware 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 Earthenware 
Manufacturing Industry and hearings having been duly held thereon 
and the annexed report on said amendment, containing findings 
with respect thereto, having been made and directed to the 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate, by reference, said 
annexed report and do find that said amendment and the Code as 
constituted after being amended comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said amendment 
be and it is hereby approved, and that the previous approval of 
said Code is hereby modified to include an approval of said Code 
in its entirety as amended. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
C. E. Adams, 

Division Administrator, 

Washington, D.C, 

August 31, 193Ji.. , 

(241) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: An Opportunity to be Heard on an amendment to the Code 
of Fair Competition for the Earthenware Manufacturing Industry, 
submitted by the Code Authority for that Industry, in accordance 
with the provisions of the National Industrial Recovery Act, has 
been afforded to all parties at interest. 

The amendment is to provide for Compulsory Assessments for 
the expenses of the Maintenance of the Code Authority. 

FINDINGS 

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

I find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for the 
general welfare by promoting the organization of industry for the 
purpose of cooperative action among trade groups by inducing 
and maintaining united action of labor and management under 
adequate governmental sanction and supervision, by eliminating 
unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restrictions of production (except as may be temporarily 
required), by increasing the consumption of industrial and agri- 
cultural products through increasing purchasing 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 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 ])resent 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. 

(242) 



243 . 

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

Hugh S. Johnson, 

Administrator. 

August 31, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR: 
THE EARTHENWARE MANUFACTURING INDUSTRY 

The Code of Fair Competition for the Earthenware Manufac- 
turing Industry shall be modified by deleting Section 7 of Article 
VI, and by deleting subsections (f) and (g) Section 9, Article VI; 
and by changing subsection (h) of Section 9, Article VI to subsec- 
tion (f ) ; and by changing Section 8 of Article VI to Section 7; and 
by changing Section 9 of Article VI to Section 8; and by changing: 
the second Section 9 of Article VI (Which Section appears im- 
mediately preceding Article VII in the printed Code) to Section 10;. 
and by inserting the following as Section 9 : 

1. It being found necessar}^ 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 purj^oses, 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 
pur])oses, 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 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. 

3. The Code Authority shall neither incur nor pay any obligation 
substantially in excess of the amount thereof as estimated in its ap- 
])roved budget, and shall in no event exceed the total amount con- 
tained in the approved budget except upon approval of the Ad- 
ministrator, and no subsequent budget shall contain any deficiency 

(244) 



245 

item for expenditures in excess of prior 'budget estimates except 
those which the Administrator shall have so approved. 

4. Failure on the part of any member of the industry to contribute 
his or its equitable contribution to the expenses of maintaining the 
Code Authority, determined as hereinabove provided, shall be a 
violation of this Code subject however to rules and regulations issued 
by the Administrator which pertain hereto. 

Approved Code No. S22 — ^Amendment No. 1. 
Registry No. 1016-03. 



\ 



Approved Code No. 183 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

HOUSEHOLD ICE REFRIGERATOR INDUSTRY 

As Approved on August 31, 1934 



ORDEK 



Approving Amendment of Code of Fair Competition for the 
Household Ice Refrigerator 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 Household Ice Refrig- 
erator 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 

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 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, 
AdministratOT for Industrial Recovery^. 

Approval recommended: 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

August 31, 193^. 

(247) 



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 Household Ice Refrigerator Industry as approved 
by me on December 30, 1933. Application was made under date of 
July 25, 1934, by the Code Authority for the Household Ice Re- 
frigerator Industry, for amendment of the provisions of Article VI, 
Section 2, of the Code. Although fair notice of opportunity to be 
heard on this proposed amendment was given to all interested 
parties, no objections have been filed. 

This amendment was drawn up and proposed in accordance with 
Executive Order No. 6678, dated April 14, 1934, and with the latest 
suggested wording for such amendments drafted by the Legal Divi- 
sion. It is intended to govern the collection oi assessments for 
code administration by the Household Ice Refrigerator 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 DejDuty Administrator in his final report to me on 
said amendment to said Code having found as herein set forth, and 
on the basis of all the proceedings in this matter : 

I find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general wel- 
fare by promoting the organization of industry for the purpose of 
cooperative action among trade groups, by inducing and maintaining 
united action of labor and management under adequate governmental 
sanction and supervision, by eliminating unfair competitive 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 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 Code empowers the Code Authority to present the afore- 
said amendment on behalf of the Industry as a whole. 

(248) 



249 

(d) The amendment and the Code as amended are not designed to 
and will not permit monoi>olies or monopolistic practices. 

(e) The amendment and tlie 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 de^^rived of the right to be heard prior to approval of said 
amendment. 

I believe the amendment to be fair to labor, to the consumer and 
to the industry, and for these reasons, therefore, I approve this 
amendment. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 
AuGTJST 31, 1934, 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE HOUSEHOLD ICE REFRIGERATOR INDUSTRY 

Article VI, Section 2, of the Code of Fair Competition for the 
Household Ice Refrigerator Industry shall be and hereby is amended 
to read as follows: 

2, (a) It being found necessary in order to support the Admin- 
istration of this code and to maintain the standards of fair com- 
petition established hereunder and to effectuate the policy of the 
Act, the Code Authority is authorized : 

(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 ta 
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- 
sarj^ 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 the maintenance of the Code Au- 
thority, determined as hereinabove provided, and subject to rules 
and regulations pertaining thereto issued by the Administrator. 
Onl)'- members of the industry complying with the Code and con- 
tributing to the expenses of its administration as hereinabove pro- 
vided (unless duly excepted 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, 

(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 upon approval of the 
Administrator; and no subsequent budget shall contain any defi- 
ciency item for expenditures in excess of prioi- budget estimates- 
except those which the Administrator shall have so approved. 

Approved Code No. 183 — Amendment No. 3. 
Registry No. 1328-1-01. 

(250) 



Approved Code No. 48 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SILK TEXTILE INDUSTRY 

As Approved on August 31, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the 
Silk 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 Silk Textile Industry, 
and the annexed report on said amendment, containing findings with 
respect thereto, having been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order 65'43-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 provi- 
sions and will promote the policy and purposes of said Title of said 
Act, and do hereby order that said amendment be and it is hereby 
approved, and that the previous approval of said Code is hereby 
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 Adminis- 
trator issues a subsequent order to that effect. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Robert L. Houston, 

Division Administrator. 

Washington, D.C, 

August 31, 19S4. 

(251) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on an amendment to the Code of Fair Com- 
petition for the Silk Textile Industry. A hearing was not held nor 
was a Notice of an Opportunity to File Objections issued, due tO" 
the minor changes made. However, the order approving this amend- 
ment provides that it shall not be effective for fourteen (14) days- 
from the date of approval. 

PROVISIONS or THE AMENDMENT 

Article VIII, Section 2(a) is amended by changing the words- 
" filed price " in line five of paragraph 1 to " quoted price " and the 
words " filing the price " in line eleven of paragraph 1 to " quoting- 
the price." The balance of the amendment is the same as it is iii: 
the approved Code. 

FINDINGS 

The Deputy Administrator in his final report to' me on said 
amendment to said Code having fo-und a& 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 arfr 
well designed to promote the policies and purposes of Titlte I of the- 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tencB 
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 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 the standards of labor, and by otherwise- 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent ]5rovisions of said Title of said Act, including wntliout limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section T, 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. 

r.252). 



253 

(e) The amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will nolt 
operate to discriminate against them. 

For these reasons this amendment has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator^ 
August 31, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
SILK TEXTILE INDUSTRY 

Article VIII, Section 2 (a) is hereby amended to read as follows: 
Section 2(a). The standards of fair competition for the Industry 
with reference to pricing practices are declared to be as follows : 

(1) 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 
complain to the Cfode Authority that any quoted price constitutes 
unfair competition as destructive price cutting, imperiling small 
enterprise or tending toward monopoly or the impairment of code 
wages and working conditions. The Code Authority shall within 5 
days afford an opportunity to the member quoting the price to 
answer such complaint and shall within 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 N.RA. which shall render a report and 
recommendation thereon to the Administrator. 

(2) 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. 

(3) When an emergency exists as to any given product, sale below 
the stated minimum price of such product, in violation of Section 2 
(b) hereof is forbidden. 

Approved Code No. 48 — Amendment No. 2. 
Registry No. 263-01. 

(254) 



Approved Code No. 286 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BEAUTY AND BARBER SHOP MECHANICAL 
EQUIPMENT MANUFACTURING INDUSTRY 



I 



As Approved on September 1, 1934 



ORDER 



Appro\t:xg Modification of the Code of Fair Competition for the 
Beauty and Barber Shop Mechanical Equipment Manufac- 
turing Industry 

An application having been daly 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 Beauty and Barber Shop 
Mechanical Equipment Manufacturing Industry, and opportunity 
to file objections having been given and the annexed report on said 
modification, containing findings with respect thereto, having been 
made and directed to the President: 

^ NOW. THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A. dated December 30, 
1933, and otherwise; do hereby incorporate, by reference, said an- 
nexed report and do find that said modification and the Code as 
constituted after being modified comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said modification 
be and it is hereby approved, and that the previous approval of said 
Code is hereby modified to include an approval of said Code in its 
entirety a^i modified; provided that Section 5 of Article VII be, and 
it hereby is, deleted. 

Hugh S. Johnson, 
Adminht7afor for Industiial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division A dministrator. 

Washington, D.C, 

September 7, 193^. 

89406—34 7 ' (255) 



REPORT TO THE PRESIDENT 

The President, 

The 'White Bouse. 

Sir: This is a report on the modification of the Code of Fair 
Competition for the Beauty and Barber Shop Mechanical Equip- 
ment Manufacturing Industry, relating to collection of expenses 
of code administration. 

This modification was proposed in accordance with Article VII, 
Section 7, Subsection (j) and Article VIII, Section 2 of the Code, 
approved February 16, 1934. 

Notice of opportunity to be heard was given from August 7, 1934, 
to August 21, 1934. No objection has been filed against the proposed 
modification of the Code. 

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 constituted to promote the policies and purposes of Title I of 
the National Industrial Recovery Act, including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the gen- 
eral welfare by promoting the organization of industry for the pur- 
poses 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 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 re- 
lieving unemployment, by improving standards of labor, and by 
otherwise rehabilitating industry. 

(b) The Code as modified complies in all respect Avith the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

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



257 

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

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

Hugh S. Johnson, 

A dministrator, 
September 1, 1934. 



MODIFICATION OF CODE OF FAIR COMPETITION FOR 
THE BEAUTY AND BARBER SHOP MECHANICAL 
EQUIPMENT MANUFACTURING INDUSTRY 

Purpose 

Pursuant to Article VII, Section 7, Subsection (j) and Article 
VIII, Section 2 of the Code of Fair Competition for the Beauty 
and Barber Shop Mechanical Equipment Manufacturing Industry, 
duly approved by the President on February 16, 1934, and further 
to effectuate the policies of Title I of the National Industrial Re- 
cover}^ Act. the following modification is established as a part of 
said Code of Fair Competition and shall be binding upon every 
member of the Beauty and Barber Shop Mechanical Equipment 
Manufacturing Industry. 

Article VII — Administration 

Amend Article VII as follows : 

Delete Subsection (g) of Section 7, and reletter Subsections (h), 
(i) and (j) of this Section to read (g), (h) and (i), respectively; 
and add immediately after Section 8 three new sections numbered 
9, 10, and 11 to read as follows: 

Section 9. It being found necessary in order to support the 
administration of this code and to maintain the standards of fair 
competition established hereunder and to effectuate the policy of 
the Act, the Code Authority is authorized : 

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

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem 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 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 10. 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 Admin- 

(258) 



259 

istrator. Only members of the Industry complying with the 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 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 11. The Code Authority shall neither incur nor pay atiy 
obligation 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 
deficiency item for expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Approved Code No. 286 — Amendment No. 1. 
Registry No. 160&-05. 



Approved Code No. 210 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PIPE ORGAN INDUSTRY 

As Approved on September 1, 1934 



ORDER 



Approving Amendment to Code or Fair Competition for the 
Pipe Organ Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title 1 of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Pipe Organ Industry, 
and opportunity to be heard having been afforded all interested 
parties, and any objections filed having been duly considered, and 
the annexed report on said amendment, containing findings with 
respect thereto, having been made and directed to the President: 

XOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 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, 
AdTmrdstrator for Industrial Recovery, 

Approval recommended : 
Joseph F. Battle y. 

Acting Division Administrator. 

Washington, D.C, 

Septetnber 1, 193 4-. 

(261) 



REPORT TO THE PRESIDENT 

The Presidknt, 

The White Hotise. 

Sir: An apiilication lias 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 
Pipe Orn^an Industry, submitted by the Code Authority for the Pipe 
Oriran Industry. 

The purpose and effect of the Amendment are to authorize the 
Code Authority to submit a budget and method of assessment upon 
which funds shall l)e contributed by members of the Industry. 

The Amendment also incorporates in the Code certain standard 
labor and administrative provisions, which will prove more effective 
to the Code Authority in the administration of this Code for the 
Industry. 

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

I find that : 

(a) The Amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I 
of the National Industrial Recovery Act including the removal 
of obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof and will provide for the 
general welfare by promoting the organization of industry for the 
purpose of cooperative acti(m among trade groups, by inducing and 
maintaining united action of labor and management under ade- 
quate governmental sanction and supervision, by eliminating unfair 
competitive practices, 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 increasing the consumption of industrial and agri- 
cultural products through increasing purchasing power, by reduc- 
ing and relieving unemployment, by improving standards of labor, 
and by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) The Amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

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

Hugh S. Johnson, 

A dmirdstrator. 
September 1, 1934. 

(262) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE PIPE ORGAN INDUSTRY 

Amend Section 4 of Article V by adding the following : 

" Standards for safety and health shall be submitted by the Code 
Authority to the Admini-strator within three (3) months after the 
effective date of the amendment." 

Delete Section 8 of Ariicle V and substitute therefor the following: 

" 8. All employers shall post and keep posted copies of this Code 
in conspicuous places accessible to all employees. Every member 
of the industry shall comply with all rules and regulations relative 
to the posting of provisions of Codes of Fair Competition which 
may from time to time be prescribed by the Administrator." 

Add as a new Section to Article V : 

"9. No employee shall be dismissed or demoted by reason of mak- 
ing a complaint or giving evidence with respect to an alleged 
violation to this Code." 

Delete Section 7 (g) of Article VI and substitute therefor the 
following : 

"(g) 1. It being found necessary in order to support the adminis- 
tration of this code and to maintain the standards of fair competition 
established 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 
name. 

" 2. Each member of the industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Author- 
ity determined as hereinabove provided, and subject to rules and 
regulations pertaining thereto issued by the Administrator. Only 
members of the industry complying with the code and contributing 
to the expenses of its administration as hereinabove provided, 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. 

" d^ 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- 

(263) 



264 

miiiistrator; ami no subsequent budf^et shall contain any ileficiency 
item for exj)c'n(litMres in excess of prior l)U(l<ret estimates except 
those which the Administrator shall have so approved.'' 

Article VI, Section 7 — Strike out subsection (i) and in lieu thereof 
insert the folhnving: 

(i) To recommend to the Administrator any action or measures 
deemed advisable, includin<r further fair trade practice provisions 
to orovern mend)ers of the industry in their relations with each other 
or with other industries; measure for industrial planning, and sta- 
bilization of employment; and including modifications of this Code 
which shall become effective as part hereof upon approval by the 
Administrator after such notice and hearing as he may specify. 
Article VI, Section 7 — Add a new subsection as follows: 
(j) To appoint a Trade Practice Committee which shall meet with 
the Trade Practice Committees appointed under such other codes as 
may be related to the industry for the purpose of formulating fair 
trade practices to govern the relationships between employers under 
this code and under such other codes to the end that such fair trade 
practices may be proposed to the Administrator as amendments to 
this code and such other codes. 

Article VI — Amend Section 5 to read as follows : 
" 5. An}'^ member of the Industry shall be eligible for member- 
ship in the National Association of Organ Builders or any other 
trade association or organized group participating in the activities 
of the Code Authority upon compliance with the provisions of the 
bylaws relating to membership, provided that any person applying 
for membership shall pay such dues as are imposed upon and paid 
b}^ all other members. Such members of the Industry' as do not 
choose to become members of the National Association of Organ 
Builders or any other trade association or organized group may 
participate in the activities of the Code Authority and the selection 
of members thereof by complying with the requirements of this 
Code." 
Article VI, Section 7 — Amend subsection (h) to read as follows: 
"(h) To cooperate with the Administrator in regulating the use of 
any N.R.A. insignia solely by those members of the Industry who 
are complying with this Code." 

Approved Code No. 210 — Amendment No. 1. 
Registry No. 1644-02. 



Approved Code No. 201G — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

RADIO WHOLESALING TRADE 

As Approved on September 1, 1934 



ORDER 



Approving Amendment to Supplementary Code of Fair Competi- 
tion FOR THE Radio Wholesaling 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 Indus- 
trial Recovery Act, approved June 16, 1933, for approval of an 
amendment to a Supplementary Code of Fair Competition for the 
Radio Wholesaling Trade to the Code of Fair Competition for 
the Wholesaling or Distributing Trade, and opportunity to be heard 
thereon having been given and the annexed report on said amend- 
ment, containing findings with respect thereto, having been made 
and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise ; do hereby incorporate by reference, said an- 
nexed report and do find that said amendment and the Supple- 
mentary Code as constituted after being amended comply 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 
amendment be and it is hereby api^roved, and that the previous ap- 
proval of said Supplementary Code is hereby amended to include 
an approval of said Supplementary Code in its entirety as amended. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Harry C. Carr, 

Acting Division Adininistrator. 

Washington, D.C, 

Septemler i, 193^. 

(265) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the amendment of the Supplementary 
Code of Fair Competition for the Radio Wholesaling Trade as 
approved by me on April 21, 1934. Application was made under 
date of July 13, 1934, by the Divisional Code Authority for the 
Radio Wholesaling Trade, for amendment of the provisions of 
Article III, Section 6, 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. G678, dated April 14, 1934, and with the Legal 
Division's suggested wording for such amendments. It is intended 
to govern the collection of assessments for code administration by 
the Radio Wholesaling Trade. 

This amendment does not in any way affect the labor provisions 
of the Supplementary Code or anything other than assessment for 
expenses of code administration. 

The Deputy Administrator in his final report to me on said amend- 
ment to said Supplementary 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 Supplementary Code and the Sup- 
plementary Code as amended are well designed to promote the poli- 
cies and purposes of Title I of the National Industrial Recovery 
Act including the 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 coo])erative action 
among trade groups, by inducing and maintaining united action of 
labor and management under adequate governmental sanction and 
supervision, l)y eliminating unfair competitive practices, by promot- 
ing 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 imjiroving 
standards of labor, and by otherwise rehabilitating industry. 

(b) The Supplementary Code as amended com})lies in all respects 
with the pertinent provisions of said Title of said Act. including 
without limitation Subsection (a) of Section 5, Subsection (a) oi 
Section 7, and Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Divisional Code Authority to present 
the aforesaid amendment on behalf of the Trade as a whole. 

(d) The amendment and the Supplementary Code as amended are 
not designed to and will not permit monopolies or monopolistic 
practices. 

(266) 



i 



267 

(e) The amendment and the Supplementary Code as amended 
are not designed to and will not eliminate or oppress small enter- 
prises 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, I have approved this amendment to the Supple- 
mentary Code of Fair Competition for the Radio Wholesaling Trade. 
Respectfully, 

Hugh S. Johnson, 

A dministratoT. 
September 1, 1934. 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE RADIO WHOLESALING 
TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

Add a new Section, namely Section 6, to Article III as follows: 
Section 6. 1. It being found necessary in order to support the 
administration of this Supplementary Code and to maintain the 
standards of fair competition established hereunder and to eifectu- 
ate the policy of the Act : 

(a) The Divisional Code Authority and the District Agencies 
in tlieir respective districts are authorized 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 pur- 
poses of the Supplementary Code; 

(b) The Divisional Code Authority is authorized to submit to the 
Administrator for his approval, subject to such notice and oppor- 
tunity 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, the Divisional Code Authority is 
authorized to determine and obtain equitable contribution as above 
set forth by all members of the Trade, and to that end, if neces- 
sary, to institute legal proceedings therefor in its own name. 

(d) Tlie Divisional Code Authority is further authorized to sub- 
mit to the Administrator for his api)roval, subject to such notice and 
opportunity to be heard as he may deem necessary (1) an itemized 
budget of estimated expenses for one District Agency for the fore- 
going purposes, said budget to be considered as a maximum budget 
for each District Agency and to be reduced by individual District 
Agencies in so far as possible, and (2) an equitable basis upon 
wliich the funds necessary to support sucli maximum budget for 
one District Agency shall be contributed by members of the Trade 
in such District. 

(e) After such maximum budget and basis of contribution for 
one District Agency have been approved by the Administrator, each 
District Agency shall submit to the Divisional Code Authority for- 
its approval subject to such rules and regulations as the Admin- 
istrator may prescribe (1) an itemized budget of estimated expenses 
for said District Agency 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 in such district. 

(f) After such budget and basis of contribution for a District 
Agency have been approved by the Divisional Code Authority in 

(268) 



269 

accordance with such rules and regulations as the Administrator maj 
have prescribed, said budget and basis of contribution shall be sub- 
mitted to the Administrator for review and disapproval within 30 
days, and said District Agency is authorized to determine and ob- 
tain equitable contribution as above set forth by members of the 
Trade within such District and to that end, if necessary, to insti- 
tute legal proceedings therefor in its own name. 

(g) An}^ individual District Agency which requires for the fore- 
going purposes a budget of estimated expenses exceeding the maxi- 
mum budget submitted and approved in accordance with the 
provisions of subsections (d) and (e) above or which requires a 
basis of contribution under which the amount to be contributed by 
any one member of the Trade in such District exceeds such amount 
provided under the basis submitted and approved in accordance 
with the provisions of subsections (d) and (e) above, is authorized 
to submit to the Administrator for his approval subject to such 
notice and opijortunity to be heard as he may deem necessary, (1) 
an itemized budget of estimated expenses for said District Agency 
for the foregoing purposes, and (2) as equitable basis upon which 
the funds necessary to support such budget shall be contributed by 
the members of the Trade in such District. After such budget and 
basis of contribution, submitted by such District Agency, have been 
approved by the Administrator, such District Agency is authorized 
to determine and obtain equitable contribution as above set forth by 
all members of the Trade within such District and to that end, if 
necessary, to institute legal proceedings therefor in its own name. 

2. Each member of tlie Trade shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the Divisional Code 
Authority and of the District Agency for his or its district, deter- 
mined as hereinabove provided, and subject to rules and regulations 
pertaining thereto issued by the xldministrator. Only members 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 participate in 
the selection of members of the Divisional Code Authority or of the 
District Agency for his district, 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 Divisional Code Authority and the District Agencies 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 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. 201G — Amiiidment No. 1. 
Registry No. 1327-3-0.3. 



Approved Code No. 156 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

RUBBER MANUFACTURING INDUSTRY 

As Approved on September 1, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the 
Rubber 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 the approval of an amend- 
ment to a Code of Fair Competition for the Rubber 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 the authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate, by reference, said 
annexed report and do find that said 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 is hereby approved, and that the previous approval of said 
Code is hereby modified to include an approval of said Code in its 
entirety as amended, 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
C. E. Adams, 

Division Adrmnistrator. 
Washington, D.C, 

Seftemher 1. lOSJf. 

89406—34 8 (271) 



REPORT TO THE PRESIDENT 

The President, 

The Whife House. 

Sir : The Public Hearinjr on an amendment to Chapter VI of the 
Code of Fair Competition for the Rubber Manufacturing Industry, 
as proposed by the Heel and Sole Divisional Authority for the Heel 
and Sole Division of this Industr}'^, was conducted on Friday, July 
6, 1934, in Room D, Washington Hotel. Washington, D.C. Every 
person who requested an appearance was properly heard in accord- 
ance with the regulations of the National Recovery Administration. 
There were present duly authorized representatives of the Divisional 
Code Authority. 

The Deputy Administrator in his final report to me on said amend- 
ment to Chapter VI of said Code, having found as herein set forth 
and on the basis of all the proceedings in this amendment: 

I find that : 

fa) The amendment to said Code and the Code as amended are 
Avell desiLmed 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 ]:>roduction (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 re- 
habilitating industr3^ 

(b) The Code as amended complies in all res])ects with the per- 
tinent provisions of said Title of said Act, including Avithout limita- 
tion subsection (a) of Section 3, subsection (a) of Section 7 and 
subsection (b) of Section 10 thereof. 

(c) The Code empowers the Divisional Authority to present the 
aforesaid amendment on behalf of the Division as a whole. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not op- 
erate to disci-iminate 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, 
September 1, 1934. Administrator. 

(272) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
RUBBER MANUFACTURING INDUSTRY 

HEEL AND SOLE DIVISION 

Article IV-A, Chapter VI is amended to read as follows: 
Article IV — A. Trade Practices 

Section 5 to be changed to Section 7. 

New Section 5 to read as follows : 

Section 5. No member of the Division shall sell, or offer for sale, 
any products of the Division which have been, or should be, properly 
classified as " Seconds " except to employees for their own personal 
use and not for resale purposes. No such member shall sell " Firsts " 
as " Seconds " under any circumstances. 

Definition: For the purpose of this section "Seconds" shall be 
defined as all products of the Division which have become defective 
in the course of manufacture. 

New section 6 to read as follows : 

Section 6. No member of the Division shall sell, or dispose of, any 
products of the Division of obsolete or discontinued design at special 
prices, without first 

(a) Notifying the Divisional Authority two (2) weeks in advance 
of the quantity or number of products of this Division to be so dis- 
posed of, with the reasons therefor : 

(b) Stating discount below the regular established prices at which 
they are to be sold. 

(c) Obtaining the approval of the Divisional Authority for such 
disposal. The Divisional Authority shall act within ten (10) days 
after receipt of the notification from such member. If the Divi- 
sional Authorit}^ fails to notify such member of its decision within 
said ten (10) days, the necessity for such approval of the requested 
authorization shall be considered waiA'ed. If the Divisional Au- 
thority denies approval within said ten (10) days, such member may 
appeal to the Administrator. The Divisional Authority shall advise 
all members of the Division simultaneously of such authorizations. 

Deflmtion: For the purpose of this section " Obsolete Goods " 
shall be defined as those products of the Division which have ac- 
tually been discontinued from production. 

Approved Code No. 1.56 — Amendment No. 2. 
Registry No. 899-04. 

(27.3) 



Approved Code No. 87 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LEATHER AND WOOLEN KNIT GLOVE INDUSTRY 

As Approved on September 5, 1934 



OEDER 



Amendment to Code of Fair Competition for the Leather and 
Woolen Knit Glove 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 Leather and Woolen 
Knit Glove Industry, and Notice of Opportunity to be Heard hav- 
ing been published thereon and the annexed report on said amend- 
ment, containing findings with respect thereto, having been made 
and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise, do hereby incorporate, by reference, said 
annexed report and do find that said amendment and the Code as 
constituted after being amended comply in all respects with the per- 
tinent provisions and will promote the policy and purposes of said 
Title of said Act. and do hereby order that said amendment be and 
it is hereby approved, and that the previous approval of said Code 
is hereby modified to include an approval of said Code in its en- 
tirety as amended. 

Hugh S. Johnson, 
Ad'rninistratoT for Industrial Recovery. 

Approval recommended : 

William P. Farmsworth, 

Acting Division Administrator. 

Washington, D.C, 

Septeniber 5, 193^. 

(275) 



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 Leather and Woolen Knit Glove Indus- 
try, as approved on November 4, 1933, which empowers the Code 
Authority to assess members of the Industry in order to obtain 
funds for purposes of Code Administration. This amendment car- 
ries out the purposes of your Order of April 14, 1934. 

The amendment was submitted by the Leather and Woolen Knit 
Glove Code Authority on behalf of the Leather and Woolen Knit 
Glove Industry on June 22, 1934. A Notice of Opportunity to Be 
Heard on the amendment, as proposed by the Code Authority, w-as 
subsequently issued, and an adequate opportunity was given all in- 
terested parties to voice their objections 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 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 ob- 
structions to the free flow^ of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the gen- 
eral welfare by promoting the organization of industr}^ for the 
purpose of cooperative action among trade groups, by inducing and 
maintaining united action of labor and management under adequate 
governmental sanction and supervisions, 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 temporai-ily i'<M|uired), l)y in- 
creasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating Industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion sub.section(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 permit monopolies or monopolistic practices. 

(276) 



277 

(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, 

A dministrator, 
September 5, 1934. 



AMENDMENT TO THE CODE OF FAIR COMPETITION 
FOR THE LEATHER AND WOOLEN KNIT GLOVE 
INDUSTRY 

Amend Article VI by deletiiif; thereform subsection (f ) of Section 
2 and substitute in lieu thereof Sections 5, 6 and 7 to read as follows : 

Section 5. It being found necessary, in order to support the 
administration of this code and to maintain the standards of fair 
competition established hereunder and to effectuate the policy of the 
Act, the Code Authority is authorized : 

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

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem 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 a 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 
contributions as above set forth by all such members of the industry, 
and to that end, if necessary, to institute legal proceedings therefor 
in its own name. 

Section. 6. 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 contri- 
buting to the expense of its administration as provided, (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 benefit of its voluntary activities. 

Section 7. The Code Authority shall neither incur nor pay any 
obligations 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 deficiency 
item for expenditures in excess of prior budget estimates except 
those which the Administrator shall have so approved. 

Approved Code No. 87 — Amendment No. 1. 
Registry No. 913-1-01. 

(278) 



Approved Code No. 278 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

TRUCKING INDUSTRY 

As Approved on September 5, 1934 



ORDER 



Approving Modifications of Code of Fair Competition for the 

Trucking Industry 

An application having been duly made pursuant to and in full 
compliance with the provis ons of Title I of the National Indus- 
trial Recovery Act, approved June 16, 1933, for approval of modi- 
fications to the Code of Fair Competition for the Trucking In- 
dustry and the annexed report on said modifications containing 
findings with respect thereto having been made and directed to the 
President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order 6543-A, dated December 30, 
1933, and otherwise, do hereby incorporate by reference, said an- 
nexed report and do find that said modifications and the Code 
as constituted after be'ng modified comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said modifications 
be and they are hereby approved, and that the previous approval 
of said Code is hereby modified to include an approval of said Code 
in its entirety as modified, such approval and such modifications 
to take effect fourteen 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, 
AdTninistrator for Industrial Recovery. 

Approval recommended: 
L. H. Peebles, 

Acting' Division Administrator. 

Washington, D.C, 

September 5, 193Ji.. 

(279) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on Modifications of the Code of Fair Compe- 
tition for the Trudging Industry. The ^lodifications were sub- 
mitted by the Code Authority for said Industry and are to be pub- 
lished coincidental with the approval of the Order. Opportunity 
to file objections is to be afforded to all interested parties. 

In final form these Modifications have been approved by the 
Industrial Advisoiy Board and the Legal Division of the National 
Recovery Administration. These are the only Boards concerned 
wnth these Modifications. 

The Deputy Administrator in his final report to me on the 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 Modifications of said Code and the Code as modified 
is 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 the trade groups, b}' inducing 
and maintaining united action of labor and management under ade- 
quate governmental sanctions and supervision, by eliminating unfair 
competitive practices, by promoting the fullest possible utilization 
of the present productive capacity of industries, by avoiding undue 
restriction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and relieving 
unemployment, bv improving standards of labor, and by otherwise 
rehabilitating incTustry. 

(b) The Code as modified complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said Modifications on behalf of the Industry as a whole. 

(d) The Modifications and the Code as modified are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The Modifications and the Code as modified are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(f ) Those engaged in any other steps of the economic process are 
to have full opportunity to be heard as provided in the Order of 
Approval. 

For these reasons, these Modifications have been approved. 
Respectfully, 

Hugh S. Johnson, 

Admmist7'ato)\ 
Sfpiember 5, 1934. 

(280) 



MODIFICATION OF CODE OF FAIR COMPETITION FOR 
THE TRUCKING INDUSTRY 

Modify Article II by striking out Section 15, and changing the 
numbering of the sections following accordingly. 

Modify the first paragraph of Article III, A, by striking out the 
words " Regional Code Authorities; (3)", and changing the number 
" (4) "to ''{3)". 

Modify Article III. A (1) by striking out the first paragraph 
thereof headed " (h-ganization ", and substituting the following: 

The National Code Authority shall consist of one voting member 
from each region. For the purpose of administering the Code, the 
National Code Authority shall divide the United States into regions 
consisting of three or more states. The voting members of the 
National Code Authority shall be elected by an electoral college 
consisting of four members from each region. Members of this 
electoral college shall be chosen by a majority vote of a convention 
of state code authorities in each region, each state area in such 
region voting an equal number of votes. The members of the 
electoral college so chosen from each region shall be, one, a regular 
route common carrier operator; one, a contract operator; one, a 
local cartage operator; and one, an operator from some other 
natural class of the Industr3^ 

'* The first convention for choice of delegates to the electoral 
college shall be held in each region on call of the National Code 
Authority, which call shall be issued within ninety days after the 
elections provided for in paragraph (3) hereof headed ' State Code 
Authority ' and such convention shall be subject to rules and regu- 
lations prescribed by the National Code Authority and approved 
by the Administrator. 

'• The first meeting of the electoral college shall be held on call 
of the National Code Authority and it shall thereafter operate in 
accordance with its own by-laws approved by the Administrator 
and under its own officers." 

Modify the second paragraph of Article III, A (1) headed 
" Powers and Duties " by strildng out the word '' Regional ", 

Modify Article III, A (1) (f) by striking out the word "Re- 
gional ", 

Modify Article III, A (1) (k) by striking out the word "Re- 
gional ", 

Strike out Article III, A (2) headed " Regional Code Authority ", 
and change the numbering of (3) headed "State Code Authority" 
and (4) headed " Divisional Code Authorities " accordingly. 

Modify the present paragraph Article III, A (3) headed " State 
Code Authority " by striking out Sub-section (h) and substituting 
the following: 

" The appropriate State Code Authority with respect to filing of 
rates between two or more State Areas, shall be the State Code 
Authorities for each area within whose jurisdiction such rates apply 
with respect to hearings on the sufficiency of a rate or rates to meet 
the cost of the service to be performed. The appropriate State Code 

(281) 



282 

Authority having the power to hold hearings thereon and to suspend 
such rate, after hearing, shall be that State Code Authority within % 
whose jurisdiction the service to be performed to which such rate I 
applies has its beginning under such rate." 

Modify Article III, A (4) (A) headed "Natural Division of 
Industry " by striking out the words " or Regional " in Sub- ^ 
section (5). 1 

Modify Article III, C, headed " Temporary Organizations " by 
striking out the word " Regional ", ' 

Modify Article IV, headed "Industrial Relations Boards", by a 
striking out the word " Regional ", ■ 

Modify Article V, A, by striking out the words " or Regional " 
from Section 5. j 

Modify Article VII by striking out the words " or Regional " from \ 
Sections 1 and 2 thereof, and by striking out the words " and 
Regional " from Section 3 thereof and inserting in line five of said 
Section 3 between the word " Divisional '' and the word " State " the J 
word " and ". I 

Modify Article VIII, headed " Trade Agreements ", by striking I 
out the words " Regional or " from the second paragraph thereof, ' 
and by striking out the following beginning with line three of the 
third paragraph thereof : 

" Trade agreements extending beyond the jurisdiction of a State 
Code Authority shall be submitted to the appropriate Regional Code 
Authority and if ext^^nding beyond the jurisdiction of one Regional 
Code Authority, shall be presented to the Code Authority for one 
of the regions involved and shall be dealt with by a joint committee 
of all the regional code authorities within whose jurisdiction such 
group agreement is effective. The Code Authority to which such 
trade agreement is originally presented shall give notice to all other 
regional code authorities in order that such joint committee may be 
set up. In dealing with such trade agreement, the joint committee 
of all the regions involved shall be vested with the powers of the 
several regional code authorities from which its members are ap- 
pointed. The ))rocee(lings of such inter-regional committee shall 
be conducted according to rules and regulations prescribed by the 
National Code Authority and each Regional Code Authority in- 
volved shall be kept fully informed of the activities of the joint 
committee." 

and substituting therefor the following : 

"Trade agreenionts extending beyond the jurisdiction of a state 
code authority shall be submitted to the code authorities for each 
state within whose jurisdiction such group agreement is effective, and 
if approved shall be dealt with by a joint committee of all the state 
code authorities within whose jurisdiction such group agreement is 
effective. The proceedings of such inter-state committee shall be 
conducted according to rules and regulations prescribed by the Na- 
tional Code Authority and each state code authority involved shall 
be kept fully informed of the activities of the joint committee." 

Modify Article X, Section 3 by striking out the word " Regional ". 

Approved Code No. 278 — Amendment No. 2. 
Registry No. 1411-61. 



Approved Code No. 462 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE TOBACCO TRADE 

As Approved on September 5, 1934 



ORDER 



Amendment to Code of Fair Competition for the Wholesale 

Tobacco Trade 

Pursuant to the authority vested in me by Title I of the National 
Industrial Recovery Act, by Executive Orders, and otherwise, and 
pursuant to Section 1 of Article IV of the Code of Fair Competi- 
tion for the Wholesale Tobacco Trade, it appearing that the original 
paragraph (cl) of said section was omitted through inadvertance 
in the final draft of the Code, and that this paragraph appeared in 
earlier drafts of the Code and was proposed and assented to by 
members of the trade submitting said Code 

IT IS ORDERED, that the approval of the Code of Fair Com- 
petition for the Wholesale Tobacco Trade, dated June 9, 1934, be 
and the same is hereby amended by providing that the paragraph 
contained in Article IV, Section 1, now designated as paragraph (d) 
be designated (e). and that there be included in said section the 
original paragraph (d) which reads as follows: 

"(d) Within cities, towns, and villages under 25,000 population, 
the wages of all classes of employees shall be increased from the rate 
existing on June 1, 1933, by not less than twenty percent (20%), 
provided that this shall not require an increase in wages to more 
than the rate of eleven dollars and fifty cents ($11.50) per week; 
and provided further that no employee shall be paid less than at 
the rate of eleven ($11.00) dollars per week." 

provided, however, that this Order shall not become effective and 
it is hereby stayed for a period of ten (10) days, and at the end of 
said ten (10) day period this Order shall become effective unless I 
shall by my further order otherwise determine or extend such stay. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Armin W. Riley, 

Division Administrator. 

Washington, DC, 

Septe^nher J, 193Jf. 

Approved Code No. 462 — Amendment No. 1. 
Registry No. 1615-15. 

(283) 



Approved Code No. 306 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THB 

MICA INDUSTRY 

As Approved on September 6, 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 amend- 
ment to a Code of Fair Competition for the Mica Industry, and hear- 
ings having been dul}^ 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 6543-A, dated December 30, 1933, 
and otherwise, do hereby incorporate by reference, said annexed re- 
port and do find that said amendment and the Code as constituted 
after being amended comply in all respects with the pertinent provi- 
sions and will promote the policy and purposes of said Title of said 
Act, and do hereby order that said amendment be and it is hereby 
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 Administrator. 

Washington, D.C, 

SejJtember 6, L9S4. 

(285) 



rp:port to the president 

The President, 

The ^V^l}te House. 

Sik: An application has been duly made, pursuant tu and in full 
compliance with the provisions of the National Industrial Recovery 
Act, for an amendment to Article VII, Section 1 (d) of the Code of 
Fair Competition for the Mica 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 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 
practtices, 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 b}' other\vise rehabili- 
tating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provision of said Title of said Act, including without limita- 
tion sub-section (a) of Section 3, sub-section (a) of Section 7 and 
sub-section (b) of Section 10 thereof. 

(c) The amendment and the Code as amended are not designed 
to and will not per-mit 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 said amendment. 

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

Hugh S. Johnson, 

A dministratar, 
SEFrEMBER 6, 1934. 

(286) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 

MICA INDUSTRY 

Section 1 (d) of Article VII shall be stricken from the Code of 
Fair Competition for the Mica Industry and the following inserted 
in lieu thereof : 

1 (d) No two members or alternates of a Divisional Code Author- 
ity shall be affiliated with any single member of the Industry, except 
in the case of the Divisional Code Authority of the Dry Ground Mica 
Division. 

Approved Code No. 306 — Amendment No. 3. 
Registry No. 1013-13. 

(287) 



I 



89406—34 9 



Approved Code No. 142 — Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

RETAIL JEWELRY TRADE 

As Approved on September 6, 1934 



ORDEK 



Appro\^ng Amendments to Code of Fair Competition for the 
Retail Jewelry 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 Retail Jewelry Trade, 
and hearings having been duly held thereon and the annexed report 
on said amendments, containing- fin(iin.o;s v,ith respect thereto, having 
been made and directed to the President : 

NOW, THEREFORE, on behalf of th^ President of the United 
States. I, Hugh S. Johnson, Admin'strator 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 amendments 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 entirely 
as amended. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval iec(jmmended : 
Robert L. Houston, 

Division Administrator. 

Washington, D.C, 

September 6, 193Jf. 

(2S9) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report of the Hearing on certain amendments to the 
Code of Fair Competition for the Retail Jewelry Trade, conducted 
in the Rose Room of the Washington Hotel, Washington, D. C, on 
July 19, 1934. The amendments which are attached were presented 
by the National Retail Jewelry Trade Council, which is the national 
]-etail jewelry code authority, and as such tlie duly qualified and 
authorized representative of the Trade. 

The first of the annexed amendments gives the Code Authority the 
right to present to the Administrator recommendations based on 
conditions in the Trade (including interpretations and/or modifica- 
tions) and to assent to such recommendations on behalf of the Trade, 
these recommendations being such as will tend to effectuate the opera- 
tion of the provisions of this Code and the policies of the National 
Industrial Recovery Act. It is felt that this provision with regard 
to the right of the Code Authority to present such recommendations 
and to assent to them on behalf of the Trade will permit the Code 
Authorit}'^ to more properly exercise their functions under the Code 
than the former provision on that subject, which was deleted through 
the substitution of this new provision. 

The second of the amendments annexed hereto is the standard 
provision suggested by the Legal Division to enable Code Authorities 
to obtain funds with which to administer Codes. This provision 
establishes a mandatory assessment to be obtained from all memliers 
of the Trade, and sets forth the powers and duties of the Code Au- 
thority with respect to the method of assessment, the budget and the 
expenditure of funds so obtained. Inasmuch as the former provision 
relating to the expenses of the Code Authorit}^ did not provide the 
Code Authority with the powers necessary to adequately obtain 
funds necessary to administer the Code for the Trade, it is felt that 
the substitution of the provision embodied in this amendment was 
necessary. 

The third amendment annexed hereto changes the name of the 
Code Authority in this Trade to " National Retail Jewelry Code 
Authority," and gives the National Code Authority and the Local 
Code Authorities in this Trade the right to incorporate upon com- 
plying with certain requirements. It is felt that a great deal of mis- 
understanding will be avoided by designating the Code Authority 
b}'^ a name which has more common usage and understanding than its 
former name. It is also felt to be desirable to permit the National 
and Local Code Authorities in this Trade to incorporate whenever 
the^' desire to do so and comply with certain requirements estab- 
lished in this amendment, in order that members of the Code Au- 
thorities will not have individual liability for acts performed on 
belialf of the Trade in administering this Code. 

(200) 



291 

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

I find that: 

(a) The amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the 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 in- 
creasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

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

(c) The Code empowers the National Retail Jewelry Trade Coun- 
cil to present the aforesaid 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 the amendments have been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
September 6, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE RETAIL JEWELRY TRADE 

Subsection (b) of Article IX, Section 2 of the Code of Fair Com- 
petition for the Retail JeAvelry Trade shall be amended by substi- 
tuting therefor the following paragraph: 

(b) Recommendations. — The National Retail Jewelry Code Au- 
thority may from time to time present to the Administrator recom- 
mendations (including proposed modifications) and may assent to 
recommendations (including proposed modifications) based on con- 
ditions in the Retail Jewelry Trade which will tend to effectuate the 
operation of the provisions of this Code and the policies of the 
National Industrial Recovery Act. Such recommendations (in- 
cluding ])i-o[)<)sed modifications) shall upon a])j)r()Viii by the Adminis- 
trator become operative as part of this Code. 

Subsection (f ) of Article IX, Section 2, shall be amended by sub- 
stituting therefor the following paragraphs : 
(f) Payment of Cost of Administration. — 

(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 and several Local Code Authorities are 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 sul)iiiit to (he Administrator for liis approval, subject to 
such notice and opportunity to be heard as he may deem necessary: 
(1) itemized budgets of the estimated expenses for the foregoing 
purposes, and (2) equitable bases upon which the funds necessary 
to support sue]) budgets shall be contributed by members of the 
Trade ; 

C. After such budgets and bases of contribution have been ap- 
proved by the Administrator, to determine nnd obtain etiuitable con- 
tribution as above set forth by all members of the Trade, and to that 
end, if necessary, to institute legal proceedings therefor in tluMi' own 
names. 

(2) Each member of the Trade shall pay his or its equitable con- 
tribution to the ex]>enses of the maintenance of the Code Authorities, 
determined as hei-einbefore })rovided, subject to rules and i-egula- 
tions pertaining tliei-eto issued by the Administrate))'. Oidy mem- 
bers of the Trade complyjig with the Code and contiibuting to the 
expenses of administration, as hereinbefore provided, (unless duly 
exempted from such contributions) shall be entitled to participate 
in the selection of members of the Code Authorities or to receive the 
benefits of any of their voluntary activities or to make use of any 
emblem or insignia of the National Recovery Administi-ation. 

('292) 



293 

(3). The Code Authorities shall neither incur nor pay any obliga- 
tions substantially in excess of the amounts thereof as estimated in 
their approved budgets, and shall in no event exceed the total amount 
contained in the approved budgets, except upon approval of the 
Administrator; and no subsequent budgets shall contain any de- 
ficiency item for expenditures in excess of prior budget estimates ex- 
cept those which the Administrator shall have so approved. 

Article IX, Section 2, shall be amended by adding thereto a new 
subsection (g) , reading as follows : 

(g) Incorporation of Code Authorities. — The National Retail 
Jewelry Trade Council, created under Section 2 (a) of this Article, 
shall hereafter be known as the '' National Retail Jewelry Code 
Authority." The said National Retail Jewelry Code Authority and 
each Local Retail Jewelry Code Authority, created in accordance 
with Section 2 (e) of this Article, may, upon submission to and ap- 
proval by the National Recovery Administration of its proposed 
Certificate of Incorporation and By-Laws, incorporate under the 
laws of any State of the United States or the District of Columbia, 
such corporation to be known as " National Retail Jewelry Code 
Authority, Inc.," or " Local Retail Jewelry Code Authority for (the 
local area), Inc.," respectively; provided that the powers, duties, 
objects and purposes of the said corporations shall, to the satisfac- 
tion of the Administrator, be limited to the powers, duties, objects 
and purposes of the Code Authorities, as provided in the Code; and, 
provided further, that the existence of the said corporations shall 
be during the term of the Code. 

If at any time the Administrator shall deternii ( that the corporate 
status assumed by the National Code Authority or any of the Local 
Code Authorities provided herein are interfering with the proper 
exercise of their powers and duties under this Code, or with the 
application of the policy or purpose of the Act, he may, after such 
notice and hearing as he may deem necessary, require an appropriate 
modification of the structure of the corporation (if consistent with 
the law of the State of incorporation), or the substitution of another 
corporation created under the laws of another State in the same 
manner as the existing corporation was created, or such other action 
as he may deem expedient. 

Approved Code No. 142 — Amendment No. 2. 
Registry No. 1631-11. 



Approved Code No. 84-0 — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

WRENCH MANUFACTURING INDUSTRY 

As Approved on September 6, 1934 



OEDER 



Approving Amendment to the Supplementary Code of Fair Com- 
petition FOR THE Wrench Manufacturing Industry 

A division of tece 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 Indus- 
trial Recovery Act, approved June 16, 1933, for approval of an 
amendment to the Supplementary Code of Fair Competition for the 
Wrench Manufacturing Division of the Fabric)!* I Metal Products 
Manufacturing and Metal Finishing and Metal Coating Industry, 
and due notice and opportunity to be heard having been given 
thereon and the annexed report on said amendment containing 
findings with respect thereto, having been made and directed to the 
President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive 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 Supple- 
mentary Code as constituted after being amended comply 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 amendment be and it is hereby approved, and that the previous 
approval of said Supplementary Code is hereby modified to include 
an approval of said Supplementary Code in its entirety as amended. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

September 6, 1934. 

(295) 



RI{;PORT TO THE PRP^SIDENT 

Tlie Pricsident, 

Tlu White House. 

Sir: An apijlication has been d\\\y made by the Supplementary 
Code Authorit}^ pursuant to and in full compliance with the provi- 
sions of the National Industrial Recovery Act, for an amendment to 
the Supplementary Code of Fair Competition for the Wrench Manu- 
facturing Division of the Fabricated Motal Products Manufacturing 
and Metal Finishing and Metal Coating Industry. 

Under date of August 2, 1934 an opportunity to be heard was 
afforded all interested parties. No objections were filed. 

GENERAL STATEMENT 

The existing provision of Article III, Section 7 (f) of this Sup- 
plementary Code for said Industry, is entirely inadequate in view 
of Executive Order No. 6677, dated April 14^ 1934, and Adminis- 
trative Order X-36, dated May 26, 1934. and it is therefore evident 
that the amendment to Article III, Section 7 (f) of said Supple- 
mentary Code, the provisions of which are in accordance with the 
text of the above mentioned orders, will enable the Industry to secure 
the desired results. 

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 ob- 
structions to the free flow of interstate and foreign commerce whic^h 
tend to diminish the amount thereofj and will provide for the gen- 
eral welfare by promoting the organization of industry for the pur- 
pose of cooperative action among trade groups, by inducing and 
maintaining united action of labor and management under adequate 
governmental 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 per- 
tinent provisions of said Title of said Act, including without limita- 

(296) 



297 

lion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Supplementary Code empowers the Supplementary Code 
Authority 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 dej)rived 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. 
September 6, 1934. 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE WRENCH MANUFACTURING 
INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTUiaNO AND 
METAL FINISHING AND METAL COATING INDUSTRY 

Delete the present Subsection (f ) of Section 7 of Article III and 
in lieu thereof insert the following: 

(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- 
I)roved bj^ 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 niiiintenance 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. 

3. T\w. 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 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. 84-0 — Amendment No. 1. 
Registry No. 1149-24. 

(298) 



Approved Code No. 187 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

COTTON CLOTH GLOVE MANUFACTURING 
INDUSTRY 

As Approved on September 8, 1934 



ORDER 



Amendment to Code of Fair Competition for the Cotton Cloth 
Glo\t: Manufacturing Industry 

An application having been duly made pursuant to and in 
full compliance with the provisions of Title I of the National 
Industrial Recoveiy Act, approved June 16, 1933, for approval of 
an amendment to a Code of Fair Competition for thje Ct»tton Cloth 
(j3«ve Manufacturing Industry, and a Hearing having been held 
thei^eon and the annexed report on said amendment, 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 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, 
Admimstrator for I)idust/ial Recovery, 

Approval recommended : 
Sol a. Rosenblatt, 

Division Administrator. 

Washington, D.C. 

September 8. 1934. 

(299) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Code of Fair Competition for the Cotton Cloth Glove 
Manufacturing Industry approved by you on December 30, 1933, 
provides in Section 8 of Article VII — Trade Practices, certain terms 
to be used in the sale of merchandise by the manufacturer to the 
wholesaler, and certain terms to be used in the sale of merchandise 
by the manufacturer to the retailer. This Section 8 further pro- 
vides that such terms may be revised upon approval of the 
Administrator. 

Pursuant to this provision, the Code Authority for this Industry 
submitted proposed revised terms to be used by the manufacturer in 
the sale of merchandise to the retailer. The revised terms were 
more favorable than the ones in the Code as approved and were for 
the purpose of bringing the " terms to the retailer " more in line 
with the " terms to the wholesaler." 

The Amendment after first being revised by the various Advisory 
Boards of the National Recovery Administration was publishea 
July 10, 1934, in a Public Notice of Hearing. The hearing was held 
July 24, 1934, in Room 128 of the Willard Hotel, Washington, D.C. 
All persons who requested were fairly heard in accordance with the 
rules and regulations of the National Recovery Administration. 

After careful consideration of the evidence presented at the hear* 
ing, it was decided that the amendment in its form as submitted 
and as considered at the hearing should be approved. 

The Amendment has the approval of the Industiial Advisory 
Board, the Labor Advisory Board, the Consumers' Advisory Board 
and the Legal Division of the National Recovery Administration. 
Phe Research and Planning Division has submitted a report. 

The Deputy Administrator in his final report to me on said 
Amendment to said Code, having found as herein set forth and on 
tlie 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 ob- 
struction to the free flow of Interstate and Foreign Commerce which 
tend to diminish the amount thereof, and will provide for the gen- 
<Mal welfare by promoting the organization of Industry for the 
pjupose of cooperative action of labor and management under ade- 
({uate Governmental sanction and supervision, by eliminating unfair 
competitive trade practices, by promoting the fullest possible uti- 
lization of the present j^roductive capacity of Industry, by avoiding 
Lindiic restriction of prmluction (excei)t as it may be temporarily 

(300) 



;{0] 

required), by increasing- the consumption of industrial and agricul- 
tural products throuii'll 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 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 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. 
September 8, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE COTTON CLOTH GLOVE MANUFACTURING 
INDUSTRY 

The second paragraph of Section 8 of Article VII, is amended 
as follows: 

" Teimis^ Manufacturer to Retailer. — Terms from manufacturer 
to retailer shall not be more favorable than 2% cash discount 20 
days with net of 40 days from date of shipment. No more favorable 
terms shall be given or allowed except gloves for Fall delivery may, 
after June 1, at the manufacturer's option and to facilitate ship- 
ments during the heavy delivery season, be invoiced as of October 1 
with 2% 20 days 40 days net." 

Approved Code No. 187 — Amendment No. 4. 
Registry No. 235-1-01. 

(302) 



Approved Code No. 252 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CYLINDRICAL LIQUID TIGHT PAPER CONTAINER 

INDUSTRY 

As Approved on September 8, 1934 



ORDER 



Approving Modification of Code or Fair Competition for the 
Cyl,indrical Liquid Tight Paper Container Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I, of the National Indus- 
trial Recovery Act, approved June 16, 1933, for approval of a modi- 
fication to a Code of Fair Competition for the Cylindrical Liquid 
Tight Paper Container 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 President: 

^ NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate, by reference, said an- 
nexed report and do find that said modification and the Code as 
constituted after being modified comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said modification 
be and it is hereby approved, and that the previous approval of 
said Code is hereby modified to include an approval of said Code 
in its entirety as modified. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Joseph F. Battley, 

Acting Division Administrator. 

Washington, D.C, 

Septemher 8, 1934. 

89406—34 10 ( 30.3 ) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

SiK : This is a report on a modification of the Code of Fair Compe- 
tition for the Cylindrical Liquid Tight Paper Container Industry 
which was approved by you on February 1, 1934. 

The eifect of this amendment will enable the Code Authority to 
submit a budget and basis of assessment and give it the power to 
institute legal proceedings, if necessary, for the collection of said 
assessments. 

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

I find that : 

(a) The modification of said Code and the Code as modified are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the gen- 
eral welfare by promoting the organization of industry for the pur- 
pose of cooperative action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of 
the present productive capacity of industries, by avoiding undue 
restriction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as modified complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion sub-section (a) of Section 8. sub-section (a) of Section 7 and 
sub-section (b) of Section 10 thereof. 

(c) The Code ejiipowei's the Code Authoiity to |)ropose the modi- 
fication on behalf of the rndvistry as a whole. 

(d) The modification and the Code as modified are not designed 
to and will not permit Miono])olies or monopolistic practices. 

(e) The modification and the Code as modified are not designed 
to and will not eliminate or <)pj)ivss small enterprises and will not 
oi)erate to discriminate against them. 

(f) Those engaged in other steps of tiie economic i)rocess have 
not been depi'ived of the right to be heard ])rior to a))]iroval of said 
modification. 

For these reasons this luodification has been approved. 
Respectfully, 

HroH S. Johnson, 

A (Im'mistratcr. 
Septembei; 8. lOHl 



MODIP^ICATION OF CODE OF FAIR COMPETITION FOR 
THE CYLINDRICAL LIQUID TIGHT PAPER CON- 
TAINER INDUSTRY. 

Delete Section V of Article II and in lieu thereof insert : 
5. (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 (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 
approved by the Administrator, to determine and obtain equi- 
table contributions 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 Author- 
ity, determined as hereinabove pi'ovided, 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 snich 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 upon approval of the 
Administrator; and no subsequent budget shall contain any defi- 
ciency item for expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Approved Code No. 252 — Amendment No. 1. 
Registry No. 406-10. 

(305) 



Approved Code No. 221 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

METAL HAT DIE AND WOOD HAT BLOCK 
INDUSTRY 

As Approved on September 8, 1934 



ORDER 



Approving Modification of Code of Fair Competition for the 
Metal Hat Die and Wood Hat Block Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a modifica- 
tion to the Code of Fair Competition for the Metal Hat Die and 
Wood Hat Block Industry, and due consideration having been given 
thereon and the annexed report on said modification, containing 
findings with respect thereto, having been made and directed to the 
!Pr6siclpnt ' 

NOW, 'Therefore, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Order No. 6543-A, 
dated December 30, 1933, and otherwise, do hereby incorporate, by 
reference, said annexed report and do find that said modification and 
the Code as constituted after being modified comply in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act, and do hereby order that said modi- 
fication 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; provided, however, that Article VI, Sec- 
tion 6, Paragraph (f) be and it is hereby deleted. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
C. E. Adams, 

Division Administrator. 
Washington, D.C., 

September 8, 1934. 

(307) 



REPOR i^ TO 1 hp: PRESIDEM i 

The President, 

The White House. 

Sir: This is a repoit on the mollification of the Code of Fair 
Competition for the Metal Hat Die and Wood Hat Block Industry, 
which has been submitted in accordance with Executive Order 
No. 6678. 

This modification enables the Code Authority to incur such 
reasonable obligations as are necessary to support the administra- 
tion of the code and to maintain the standards of fair competition 
established by this code. It also enables the Code Authority to sub- 
mit an itemized budget, and an equitable basis upon which the 
funds ne(,'essary 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 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 ajid the code as modified are 
well designed to promote the policies and ])urposes of Title I of the 
National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the 
general welfare by promoting the organization of industry for the 
jDurpose of cooperative action among trade groups by inducing 
and maintaining united action of labor and management under ade- 
quate governmental sanction and supervision, by eliminating un- 
fair competitive practices, by promoting the fullest possible utiliza- 
tion of the present productive capacity of industries, b}^ 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 industr3^ 

(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 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. 

(30S) 



I 



309 

(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 this modification has been approved. 
Respectfully, 

Hugh S. Johnson, 

AdTiiinistrator. 
September 8, 1934. 



MODIFICATION OF CODE OF FAIR COMPETITION FOR 
THE METAL HAT DIE AND WOOD HAT BLOCK 
INDUSTRY 

Modify Article VI, deleting Section 4 and inserting in lieu thereof 
the following: 

Section 4. Expenses of Code Autharity. — 1. It being found neces- 
sary in order to support the administration of this code and to main- 
tain 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 In- 
dustry ; 

(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 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, 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. 

3. 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 con- 
tained 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. 221 — Aniendniont No. 1. 
Registry No. 1637-14. 

(310) 



Approved Code No. 84R — Amendment No. z 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR. 
COMPETITION 

FOR THE 

SCREW MACHINE PRODUCTS MANUFACTURING 

INDUSTRY 

As Approved on September 8, 1934 



ORDER 



Approving Modification of Supplementary Code of Fair Compe- 
tition FOR the Screw Machine Products Manufacturing 
Industry 

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, for approval of a modifica- 
tion to a Supplementary Code of Fair Competition for the Screw 
Machine Products Manufacturing Industry, and a Notice of Oppor- 
tunity to be Heard having been duly given 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 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 Supplemen- 
tary Code as constituted after being modified comply in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act, and do hereby order that said modi- 
fication be and it is hereby approved, and that the previous approval 
of said Supplementary Code is hereby modified to include an ap- 
proval of said Supplementary Code in its entirety as modified. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Division Administrator. 
Washington, D.C, 

September 8, 1934. 

(311) 



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 a modification of Article IV of the Supplementary Code of 
Fair Competition for the Screw Machine Products Manufacturing 
Industry by the Supplementary Code Authority for that Industry. 

The Supplementary Code of Fair Competition for the Screw 
Machine Products Manufacturing Industry was approved on April 
28, 1934. Article IV, Section 9, provides that : 

"All members of the Industry are subject to the jurisdiction of the 
Supplementary Code Authority; shall be entitled to participate in 
and share the benefits of the Supplementary Code Authority as pro- 
vided in Section 1 of this Article ; and also shall pay to the Managing 
Director as the agent of the Supplementary Code Authority their 
reasonable share of the expenses of the administration of this Sup- 
plementary Code, such reasonable share to be determined by the Sup- 
plementary Code Authority, subject to review by the Administrator 
on the basis of volume of business and/or such other factors as may 
be deemed equitable by the Supplementary Code Authority ". 

The above Section of Article IV in effect provides for voluntary 
contributions on the part of the members of the Industry. This 
method of providing funds for the proper administration of the 
Supplementary Code has been found to be unsatisfactory. The pres- 
ent modification is therefore proposed to create a legal obligation, 
on the part of the Industry Members, to pay their pro rata share of 
the expenses of the Supplementary Code Authority. 

FINDINGS 

The Assistant Deputy in his final report to me on said modifica- 
tion of said Code having found as herein set forth and on the basis 
of all the proceedings in this matter : 

I find that: 

(a) The modification of said Code and the Code as modified are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose of 
cooperative action 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 

(:n2) 



313 

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 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 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. 

(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, 

Administrator. 
September 8, 1931. 



MODIFICATION OF SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE SCREW MACHINE PRODUCTS 
MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTDRlN(i AND 
METAL FINISHING AND METAL COATING INDUSTRY 

Modify Article IV by deleting Section 9 and substituting in place 
thereof the following: 

Section 9. (a) It being found necessary in order to support the 
administration of this Supplementary Code and to maintain the 
standards of fair competition established hereunder and to effectuate 
the policy of the Act. the Supplementary 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 Supplementary 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 pay his or its equitable 
contribution to the expenses of the maintenance of the Supplemen- 
tary Code Authority, determined as hereinabove provided, and sub- 
ject to rules and regulations pei'taining thereto issued by the 
Administrator. Only members of the industry complying with the 
Supplementary Code and contributing to the expenses of its admin- 
istration as hereinabove provided, unless duly exempted from making 
such contributions, 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. 

(c) The Supi)lementary Code Authority shall neither incur nor 
pay any oI)ligation substantially in excess of the amount thereof as 
estimated in its approved budget, and shall in no event exceed the 

(314) 



315 

total amount contained in the 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. 

Modify Article IV, Section 12, by deleting Subsections f and g 
and renumbering Subsection h to read Subsection f . 

Approved Code No. 84R — Amendment No. 2. 
Registry No. 1104-11. 



i 

I 



Approved Code No. 9 — Amendment No. 20 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 

As Approved on September 9, 1934 



ORDER 



Approving Amendments to Code of Fair Competition for the 
Lumber and Timber Products Industry 

An application havinej 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 
submitted as Lumber Code Authority Amendments Nos. 60 and 61 
to the Code of Fair Competition for the Lumber and Timber Prod- 
ucts Industries, and hearings having been duly held thereon and 
the annexed report on said Amendm'ents, 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 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 modified to include an approval of said Code 
in its entirety as amended, provided that if and when there is sub- 
mitted for my approval an Amendment to said Code which provides 
for the creation of a Division of said Code applicable to wholesalers 
of lumber, irrespective of the sjoecies of such lumber or the manner 
of its transportation, the matter of transferring the California 
Water Distributors Subdivision of the West Coast Logging and 
Lumber Division to such new Division applicable to wholesalers of 
lumber, as a Subdivision of .such Division, shall be submitted for 
my further consideration and order; and 

Provided further, that this Order shall not become effective for 
a period of fifteen (15) days after the date hereof in order that con- 
sideration may be given to objections thereto, if any, by any inter- 

(317) 



318 

ested parties; at the expiration of said period this Order shall be- 
come effective, unless I have, by my further order, otherwise deter- 
mined. 

Hugh S. Johnson, 
AdTninistrator for Industrial Recovery. 

Approval recommended: 

C. E. Adams, 

Division Administrator. 

Washington, D.C, 

Septeinher 9, 19SL 



EEPORT 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 Amendments 
Nos. 60 and 61, which are included and attached. 

This is a report on the Hearing on the foregoing Amendments 
conducted in the Carlton Room of the Carlton Hotel, Washington, 
D.C., on March 27 to March 30, 1934, in accordance with the provi- 
sions of the National Industrial Recovery Act. 

These Amendments establish an Administrative Subdivision for 
California Water Distributors under the West Coast Logging and 
Lumber Division. 

Approximately fifteen to twenty percent of the West Coast lumber 
is marketed through the California ports and the California Whole- 
salers' Lumber Association, the proponents of these Amendments, 
represent eighty percent of the volume of the lumber distributed in 
California. 

The manufacturers and wholesalers engaged in distribution in this 
territory are closely inter-related and both are agreed that the 
Amendments will secure stabilization of the market and protect both 
manufacturers and distributors. 

The Amendments also establish minimum wages of 40 cents in the 
South and 45 cents in the North, providing protection for several 
thousand laborers not now protected by the Code. 

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

I find that: 

(a) The Amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose of 
cooperative action among trade groups, by inducing and 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 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 unemploy- 
ment, by improving standards of labor, and by otherwise rehabili- 
tating industry. 

89406—34 11 (319) 



320 

(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 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, therefore, I have approved these Amendments 
to the Code. 

Eespectfully, 



Hugh S. Johnson, 

A dministrator. 



September 9, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE LUMBER AND TIMBER PRODUCTS INDUSTRY 

Amendment No. 60. — In Article VII (d) in paragraph beginning 
"West Coast", after the line "Fir Plywood .... 40." add the 
following : 

" California Water Distributors : 

" California South of the 35th degree parallel ... 40 
" California North of the 35th degree parallel ... 45 " 

Amendment No. 61. — In Schedule "A" at the end of the Section, 
"16 (a) Intercoastal Distributors Subdivision " add the following 
new Section: 

"16 (b). California Water Distributors Subdivision: Article II 
(c). The California Water Distributors Subdivision of the West 
Coast Logging and Lumber Division consists of persons engaged in 
the wholesale distribution of the products of the West Coast Logging 
and Lumber Division which are shipped to California by water 
transportation for sale in California and/or for transport by back- 
haul from California ports. 

"Products: Article II (a). Douglas Fir, West Coast Hemlock, 
Sitka Spruce, Western Red Cedar and related species, except (1) 
logs, (2) poles and piling, (3) shingles, (4) woodwork, (5) hard- 
wood flooring, (6) veneer, (7) plywood, (8) kiln dried hardwood 
dimension. 

"Administrative Agency: Article III (d). The Administrative 
Agency for the California Water Distributors Subdivision shall con- 
sist of" nine members, six of whom shall be elected by members of 
the California Wholesale Lumber Association, one of whom shall be 
elected by non-members of the said Association in the State of Cali- 
fornia, one of whom shall be elected by non-members of said Asso- 
ciation in the State of Washington, and one of whom shall be elected 
by non-members of said Association in the State of Oregon. Within 
thirty (30) days after the effective date hereof, the California Whole- 
sale Lumber Association shall call a meeting or meetings and conduct 
elections for the purpose of electing the members of the Administra- 
tive Agency of this Subdivision in accordance with the foregoing 
provisions. Due notice of the time and place of said elections 
shall be sent to every ascertainable person subject to the juris- 
diction of this Subdivision in writing or by such other methods as 
are reasonably calculated to notify all interested parties of such 
elections. Said elections shall be conducted in a fair and equitable 
manner; each person subject to the jurisdiction of this Subdivision 
shall be entitled to one vote in person, by letter or by proxy. 

" In the event that any or all of the non-association members of 
the Administrative Agency are not elected at said elections, the 
members of the Administrative Agency so elected may function as 

(321) 



322 

the Administrative Agency of this Subdivision; provided that no- 
tice of this fact is immediately communicated to the Administrator 
and provided further that the Administrator, if he so elects, may 
appoint members of the Administrative Agency to represent the 
non-members of the Association in those states who have failed to 
elect their members of the Administrative Agency. Members of the 
Administrative Agency shall serve for terms of one year or until 
their successors shall have been elected. 

" The Administrative Agency of this Subdivision is designated as 
the Agency of the Authority and of the West Coast Logging and 
Lumber Division of this Code. Said Administrative Agency is 
authorized to make such rules and regulations as are necessary to 
administer the Code in this Subdivision, subject to the approval of 
the West Coast Logging and Lumber Division and of the Authority, 
and may designate and authorize such agencies as may be necessary 
to administer the Code in this Subdivision. Said rules and regula- 
tions shall be published and submitted to the National Recovery Ad- 
ministration and shall become effective fifteen (15) days after the 
Administrator's receipt thereof unless prior to that date they shall 
have been disapproved by the Administrator." 

Approved Code No. 9 — Amendment No. 20, 
Registry No, 313-1-06. 



I 



Approved Code No. 298 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WIPING CLOTH INDUSTRY 

As Approved on September 9, 1934 



OKDER 



Approving Amendments to Code of Fair Competition tor the 
Wiping Cloth Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of amendments 
to a Code of Fair Competition for the Wiping Cloth 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 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 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, 

D ivision Adtninistrator. 

Washington, D.C, 

September 9, 1934. 

(323) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on certain amendments to the Code of Fair 
Competition for the Wiping Cloth Industry, and on the hearing 
conducted thereon in Washington, D. C, July 10, 1934. 

The first amendment establishes more definitely the procedure for 
the support of the administration of this Code. 

The second amendment increases the powers and duties of the Code 
Authority relative to the preparation of standard, domestic and 
imported classifications and specifications for products of the 
Industry. 

The third amendment eliminates destructive price cutting, de- 
termines when a fixed minimum basis for prices shall exist, and 
includes the standard emergency provisions. 

The fourth amendment charges the Code Authority to have formu- 
lated cost finding and accounting methods, and further limits such 
methods to the extent of eliminating an arbitrary uniformity of 
costs and prices in the Industry. 

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 proceedings in this matter ; 

I find that: 

(a) The amendments to said Code and the Code as amended 
are well designed to promote the policies and purposes of Title I 
of the National Industrial Recovery Act including the removal 
of obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for 
the general welfare by promoting the organization of industry for 
the purpose of cooperative action of labor and management under ad- 
equate governmental sanctions and supervision, by eliminating unfair 
competitive practices, by promoting the fullest possible utilization of 
the present productive capacity of industries, by avoiding undue re- 
striction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended 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 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. 

(324) 



325 

(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. 

Hugh S. Johnson, 

Adndmstrator, 
September 9, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE WIPING CLOTH INDUSTRY 

Modify Article VI by deleting Section 5 and substituting in lieu 
thereof the following: 

5. (a) It being found necessary in order to support the admin- 
istration of this Code and to maintain the standards of fair com- 
jDetition 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 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 members of the Industrj^, 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 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 
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 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 the 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. 

Modify Article VI, Section 2, by adding sub-section (i) as follows: 
(i) To prepare standard, domestic and imported classifications and 
specifications for the products of the Industry, which on approval 
of the Administrator, shall be binding on all members of the Indus- 
try in the purchase and sale of the products of the Industry. 

(326) 



327 

Modify Article VI by adding Section 8 as follows : 

8. (a) The standards of fair competition for the Industry with ref- 
erence to pricing practices are declared to be as follows : 

(1) 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 maj'^ at any time com- 
plain to the Code Authority that any sale price constitutes unfair 
competition as destructive price cutting, imperiling small enterprise 
or tending toward monopoly or the impairment of code wages and 
working conditions. The Code Authority shall within five (5) days 
afford an opportunity to the member selling at such 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 National 
Eecovery Administration which will render a decision thereon. 

(2) 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 consid- 
eration should be given to costs in the determination of pricing 
policies. 

(3) When an emergency exists as to any given product, sale below 
the stated minimum price of such product, in violation of Section 
(b) hereof, is forbidden. 

(b) Emergency Provisions. — (1) 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 speci- 
fied product within the Industry for a limited period is necessary 
to mitigrate 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 
may proceed to determine such stated minimum price. 

(2) Wlien 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. Frorn time 
to time, the Code Authority may recommend review or reconsidera- 
tion or the Administrator may cause any determinations hereunder 
to be reviewed or reconsidered and appropriate action taken. 

Modify Article VI, by adding Section 9, as follows : 

9. Cost Finding. — The Code Authority shal cause to be formu- 
lated 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 



328 

information concerning such methods shall be made available to all 
members of the Industr3\ 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 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. 

Approved Code No. 298 — Amendment No. 1. 
Registry No. 299-1-21. 



Approved Code No. 60 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

RETAIL TRADE 

As Approved on September 10, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the Retail 

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 amendment 
to the Code of Fair Competition for the Retail Trade, and hearings 
having been duly held thereon and the annexed report on said amend- 
ment containing findings with respect thereto, having been made and 
directed to the President t 

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, 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 and the Administrator 
issues a subsequent order to that effect. 

Hugh S. Johnson, 
Adnmiistrator for Industrial Recovery. 

Approval recommended : 
Robert L. Houston, 

Division Administrator. 

Washington, D.C, 

September 10^ 193 4. 

(329) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : The Hearing on the amendment to the Code of Fair Compe- 
tition for the Retail Trade was held on Aii<^ust 27, 1934 in Room 
2062, Department of Commerce Building, Washington, D.C. The 
amendment, which is attached, was pi-esented by duly qualified and 
authorized representatives of the Trade, compljdng with statutory 
requirements, such representatives being members of the National 
Retail Code Authority, Inc. 

In accordance with customary procedure, everyone present who 
had filed a request for an appearance was freely heard in public, 
and all statutory and regulatory requirements were complied with. 

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 co-operative action of labor and management under ade- 
quate governmental sanction and supervision, by eliminating unfair 
competitive practices, by promoting the fullest possible utilization 
of the present productive capacity of industries, by avoiding undue 
restriction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and 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 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) 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. 

(e) 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 I have approved said amendment to the Code of 
Fair Competition for the Retail Trade. 
Respectfully, 

Hugh S. Johnson, 

Adminwtrator. 
September 10, 1934. 

(330) 



I 



AMENDMENT TO CODE OF FAIE COMPETITION FOR 
THE RETAIL TRADE 

Article X, Section 2 (f) shall be amended to read as follows: 

(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 thereunder, and to effectuate the policy 
of the Act, the National Retail Code Authority and the several local 
retail code authorities established thereunder are 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) Itemized budgets of their estimated expenses for the fore- 
going purposes, and 

(2) An equitable basis upon which the funds necessary to support 
such budgets shall be contributed by members of the Trade. 

2. After such budgets 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. 

3. Each member of the Trade shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the National Retail 
Code Authority and the several local retail code authorities deter- 
mined 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, unless duly exempted 
from making such contributions, shall be entitled to participate in 
the selection of members of the National Retail Code Authority or 
the several local retail code authorities or to receive the benefits of 
any of their voluntary activities, or to make use of any emblem or 
insignia of the National Recovery Administration. 

4. The National Retail Code Authority and the several local retail 
code authorities shall neither incur nor pay any obligation sub- 
stantially in excess of the amount thereof as estimated in their ap- 
proved budgets, and shall in no event exceed the total amount con- 
tained in the said approved budgets except upon approval of the 
Administrator; and no subsequent budget shall contain any defi- 
ciency item for expenditures in excess of prior budget estimates 
except those which the Administrator shall so approve. 

Approved Code No. 60 — Amendment No. 4. 
Registry No. 1625-2-02. 

(331) 



Approved Code No. 201F — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

WHOLESALE STATIONERY TRADE 

As Approved on September 10, 1934 



ORDER 



Approving Amendments to Supplementary Code of Fair Compe- 
tition FOR the Wholesale Stationery 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 amendments 
to a Supplementary Code of Fair Competition for the Wholesale 
Stationery Trade to the Code of Fair Competition for the Whole- 
saling or Distributing Trade, and an opportunity to be heard 
thereon having been given and the annexed report on said amend- 
ments, containing findings with respect thereto, having been made 
and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
State, 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 amendments and the Supple- 
mentary 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 
the previous approval of said Supplementary Code is hereby modi- 
fied to include an approval of said Supplementary Code in its 
entirety as amended. 

Hugh. S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Robert L. Houston, 

Division Ad?m7iistrator. 

Washington, D.C, 

September 10^ 198]^.. 

(333) 



REPORT TO THE PRESIDENT 

The PRESIDENT, 

TJie White Iloit^e. 

Sir : This is a report of the Notice of Opportunity to be Heard on 
certain amendments to the Supplementary Code of Fair Competi- 
tion for the Wholesale Stationery Trade, a Division of the Whole- 
saling or Distributing Trade. Opportunity to file objections thereto 
expired on August 17, 1934. The amendments which are attached 
were presented by the Divisional Code Authority for the Wholesale 
Stationery Trade and have the approval of the Board of Directors 
of the Wholesale Stationers Association and the Interstate Associa- 
tion of Stationery, Toy and Novelty Jobbers, Inc. 

The annexed amendments provide primarily for standard admin- 
istrative provisions recommended by the Administration. Addi- 
tional datmgs have been included pursuant to the power given the 
Code Authority in the Code as approved as follows: 

" Subject to the approval of the Administrator the Divisional 
Code Authority shall have power to modify these uniform datings 
or to establish uniform datings on additional items or lines." 

These amendments appear to be in no way objectionable. 

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 ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the gen- 
eral welfare by promoting the organization of industry for the pur- 
pose of cooperative action 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 8, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Wholesale Stationers Association and the Interstate Asso- 
ciation of Stationery, Toy and Novelty Jobbers, Inc. were and are 

(334) 



335 

trade associations truly representative of the aforesaid Trade and 
that said Associations imposed and impose no inequitable restric- 
tions on admission to membership therein and consent to 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 these amendments have been approved. 
Respectfully, 

Hugh S. Johnson, 

A dmirdstrator. 
September 10, 1934. 



89406—34 12 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE WHOLESALE STATIONERY 
TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

There shall be added to Section 3, Article III, the following para- 
graph to be knoAvn as Paragraph (d) : 

(d) (1) It being found necessary in order to support the adminis- 
tration of this Supplementary 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 this Supplemen- 
tary 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 
approved by the Administrator, to determine and obtain equi- 
table contribution as above set forth by all members of the 
Trade, and to that end, if necessary, to institute legal pro- 
ceedings therefor in its own name, 

(2) 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 Admin- 
istrator. Only members 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 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. 

(3) The Divisional Code Authority shall neither incur nor pay 
any obligation substantially in excess of the amount thereof as es- 
timated in its ap})roved budget, and shall in no event exceed the total 
amount contained in the approved budget, except upon approval of 
the Administrator; and no sul)se(|uont budget shall contain any 
deficiency item for expenditures in excess of \n''un' budget estimates 
except those which the Adniinistratoi- shall have so approved. 

There shall be added to Section 3, Article III, the following para- 
graph to be known as Paragraph (e) : 

(336) 



337 

(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 other trades, measures for industrial planning and stabilization 
of employment; and including modifications of this Supplementary 
Code which shall become effective as part hereof upon approval by 
the Administrator after such hearing and notice as he may specify. 

Subsection 3 of Paragraph (c), Section 1, Article IV is hereby 
deleted. 

Paragraph (d), (e) and (f) of Section 1, Article IV, shall be 
changed to read (e), (f) and (g) resj^ectively. 

There shall be added to Section 1, Article IV, the following para- 
graph to be known as Paragraph (cl) to read as follows: 

(d) Nothing contained in Paragraphs (a) and (b) shall apply 
to sales made directly or indirectly to a Federal or State Government 
or any political sub-division thereof. 

Section 3, Article IV is hereby amended to read as follows : 

The following uniform datings on seasonal goods shall prevail 
under this Supplementary Code; February 1st for Valentines; April 
1st for Easter goods; September 1st for school supplies; December 
1st for holidaj'^ goods ; October 1st for Halloween goods ; October 1st 
for desk calendars. Subject to the approval of the Administrator, 
the Divisional Code Authority shall have power to modify these 
uniform datings or to establish uniform datings on additional items 
or lines. 

Approved Code No. 201F — Amendment No. 1. 
Registry No. 409-06. 



Approved Code No. 1 — Amendment No. 10 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THB 

COTTON TEXTILE INDUSTRY 

As Approved on September 11, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Cotton Textile Industry Cotton Thread Manufacturing 
Branch 

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, 
Cotton Thread Manufacturing Branch, 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 en- 
tirety 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, 
Administrator for Industrial Recovery. 

Approval recommended: 
Prentiss L. Coonley, 

Acting Division Administrator. 

Washington, D.C, 

Septemher 11, 193 J^. 

(339) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is an amendment drawn to correct changes which a])- 
peared in the amendment to the Code of Fair Competition for the 
Cotton Textile Industry, as approved on July 17, 19iJ4, for the Code 
of Fair Trade Practices Governing the Merchandising of the Prod- 
ucts of the Cotton Thread Manufacturing Branch of the Cotton 
Textile Industry. These changes developed after the projjosed Fair 
Trade Practices had left the office of the Deputy Administrator. 
Therefore, this amendment is necessaiy to make the finally approved 
amendments coincide with those submitted and approved by the 
Industry and the Advisoiy Boards. A hearing was not held nor 
was a Notice of an Opportunity to File Objections issued, due to 
the minor changes made. However, the order approving this 
amendment provides that it shall not be effective for fourteen (14) 
days from the date of approval. 

PROVISIONS OF THE AMENDMENT 

Subsection (a). Section 21, Amendment No, 8 is amended to read 
" The Board of Directors or the Sub-Committee on Thread ", in- 
stead of " of " in the first line ; and the word " it " is deleted after 
the words "" proposed to " in the fourth line. 

FINDINGS 

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

I find that : 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purj^oses of Title I of the 
National Industrial Recovery Act including the removal of ob- 
stinictions to the free flow of interstate and foreign connnerce which 
tend to diminish the amount thereof, and will provide for the gen- 
eral welfare by promoting the organization of industry for the 
purpose of cooperative action among trade groups, by inducing and 
maintaining united action of labor ami 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 midue 
restriction of production (except as may be temporarily required), 
by increasing the consumi)tion of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and reliev- 
ing unemployment, by improving the standards of labor, and by 
otherwise rehabilitating industry. 

(340) 



341 

(b) The Cotton Textile Code as so amended complies in all re- 
spects with the pertinent provisions of said Title of said Act, includ- 
ing without limitation Subsection (a) of Section 3, Subsection (a) 
of Section 7 and Subsection (b) of Section 10 thereof. 

(c) The Cotton Textile Industry Committ-ee is empowered to 
present the aforesaid Code of Fair Practices on behalf of the In- 
dustry as a whole. 

(d) The Code of Fair Trade Practices and the Cotton Textile 
Code as amended are not designed to and will not eliminate or 
oppress small enterprises and will not operate to discriminate against 
them. 

(e) The Code of Fair Trade Practices and the Cotton Textile 
Code as amended are not designed to and will not permit monop- 
olies or monopolistic practices. 

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

Hugh S. Johnson", 

A clTninistrator. 
September 11, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE COTTON TEXTILE INDUSTRY COTTON THREAD 
MANUFACTURING BRANCH 

Section 21. Code of Fair Competition for the Cotton Textile In- 
dustry, Cotton Thread Manufacturing Branch, shall be amended to 
read as follows : 

(a) The Board of Directors or the Sub-Committee on Thread shall 
give consideration to any proposed change or changes in this Code 
of Fair Trade Practices which may be proposed to either by any 
member or members of The Thread Institute having collectively not 
less than twenty -five votes therein, provided, however, that where 
such proposed change or changes would affect manufacturers supply- 
ing thread for use on Schiffli and Swiss hand embroidery machines, 
such change or changes may be proposed by any member or members 
of The Thread Institute whose principal business is supplying such 
thread, having collectively not less than five votes therein. 

(b) The provisions of this Code of Fair Trade Practices shall 
govern all members of the Industry. Any provision of this Code 
of Fair Trade Practices may be revoked or modified by the Board 
of Directors or the Sub-Committee on Thread, subject to the approval 
of the Cotton Textile Industry Committee and the Administrator. 
This Code of Fair Trade Practices is subject to the right of the 
President, in accordance with subsection (b) of Section 10 of the 
National Industrial Recovery Act from time to time to cancel or 
modify any order, approval, rule, or regulation issued under said 
act. 

Approved Code No. 1 — Amendment No. 10. 
Registry No. 299-25. 

(342) 



Approved Code No. 305 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FIBRE CAN AND TUBE INDUSTRY 

As Approved on September 11, 1934 



ORDER 



Approving Modificatiox of Code of Fair Competition for the 
Fibre Can and Tube Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I, of the National Industrial 
Recoveiy Act, approved June 16, 1933, for approval of a modifica- 
tion to a Code of Fair Competition for the Fibre Can and Tube 
Industry, and due notice and opportunity to be heard having been 
given thereon and the annexed report on said modification, contain- 
ing findings with respect thereto, having been made and directed 
to trOP i^i*psi opnt" * 

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. 654:3-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 : 
Joseph F. Battley, 

Acting Division Administrator. 
Washington, D.C, 

Se'ptemter 11, 1934.. 

(343) 



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 Fibre Can and Tube Industry which was approved 
by you on February 24, 1934. 

The effect of this amendment will enable the Code Authority to 
submit a budget and basis of assessment and give it the power to 
institute legal proceedings, if necessary, for the collection of said 
assessments. 

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

I find that: 

(a) The modification of said Code and the Code as modified are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action 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 temp)orarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and reliev- 
ing unemployment, by improving standards of labor, and by other- 
wise rehabilitating industry. 

(b) The Code as modified complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation sub-section (a) of Section 3, sub-section (a) of Section 7 and 
sub-section (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to propose the 
modification on behalf of the Industry as a whole. 

(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) The modification and the Code as modified are not designed to 
and will not permit monopolies or monopolistic practices. 

(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, 

Administrator. 
September 11, 1934. 

(344) 



MODIFICATION OF CODE OF FAIR COMPETITION FOR 
THE FIBRE CAN AND TUBE INDUSTRY 

Delete Section V of Article II and in lieu thereof insert : 
5. (a) It being: found necessary in order to support the admin- 
istration 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 (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 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 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. 

(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 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. 30.5 — Amendment No. 2. 
Registry No. .311-03. 

(345) 



Approved Code No. 430 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PACKAGE MEDICINE INDUSTRY 

As Approved on September 11, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Package Medicine Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amendment 
to a Code of Fair Competition for the Package Medicine Industry, 
and opportunity to be heard having been afforded all interested 
parties, and the annexed report on said amendment, containing find- 
ings with respect thereto, having been made and directed to the 

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

Approval recommended: 
Joseph F. Battley, 

Acting Division Administrator. 

Washington, D.C, 

September 11, 1931^. 

(347) 



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 Pack- 
age Medicine Industry, submitted by the Code Authority for the 
Package Medicine Industry. 

The purpose and effect of the amendment are to authorize the 
Code Authority to submit a budget and method of assessment upon 
which funds shall be contributed by members of the Industry. 

The Deputy Administrator in 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 j^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 foreign commerce which tend 
to diminish the amount thereof, and will provide for the general wel- 
fare by promoting the organization of industr}' for the purpose of 
cooperative action among trade groups, by 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 possibe utilization of the present pro- 
ductive capacity of the industries, by avoiding undue restrictions of 
production (except as may be temporarily requii'ed) b}^ increasing 
the consumption of industrial and agricultural products through in- 
creasing purchasing power, by reducing and relieving unemplojnnent, 
by improving standards of labor, and by otherwise rehabilitating 
industry. 

(b) The Code as amended complies in all respects with the j)erti- 
nent provisions of said Title of said Act, including Avithout limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(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 st<>ps 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, 
September 11, 1934. 



Hugh S. Johnson, 

Adnninisti^ator. 



(348) 



AMENDMENT TO CODE OF FAIK COMPETITION FOK 
THE PACKAGE MEDICINE INDUSTRY 

Delete Section 3 of Article VI and renumber the following sec- 
tions of said article accordingly. 

Delete Paragraph (g) of Section 7 of Article VI and reletter the 
following paragraphs accordingly^ 

Delete Paragraph (f) of Section 7 of Article VI and substitute 
therefor the following: 

(f) (1) It being found necessary in order to support the ad- 
ministration of this Code and to maintain the standards of fair 
competition established hereunder and to effectuate the policy of the 
Act, the Code Authority is authorized : 

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

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the funds 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 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 activi- 
ties or to make use of any emblem or insignia of the National Re- 
covery 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 
contained in the approved budget, except upon approval of the 
Administrator; and no subsequent budget shall contain any de- 
ficiency item for expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Approved Code No. 430 — Amendment No. 1. 
Registry No. 698-2-22. 

(349) 



Approved Code No. 33 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

RETAIL LUMBER, LUMBER PRODUCTS, BUILDING 
MATERIALS AND BUILDING SPECIALTIES 
TRADE 

As Approved on September 11, 1934 



ORDER 



Approving Amendment to the Code of Fair Competition for the 
Retail Lumber, Lumber Products, Building Materials and 
Building Specialties 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, :£or approval of an amend- 
ment to the Code of Fair Competition for the Retail Lumber, Lum- 
ber Products, Building Materials and Building Specialties Trade, 
and the annexed report on said amendm(mt containing findings with 
respect thereto having been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order 6543--A, dated December 30, 1933, 
and otherwise, do hereby incorporate by reference, said annexed re- 
port and do find that said amendment and the Code as constituted 
after being amended comply in all respects with the pertinent provi- 
sions and will promote the policy and purposes of said Title of said 
Act, and do hereby order that said amendment be and it is hereby 
approved, and that the previous approval of said Code is hereby 
modified to include an approval of said Code in its entirety as 
amended, such approval and such amendment to take effect fifteen 
(15) days from the date hereof, unless good cause to the contrary is 
shown to the Administrator before that time and the Administrator 
issues a subsequent order to that effect. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Apf)roval recommended : 
Robert L. Houston, 

Division Admijiistrator. 

Washington, D.C, 

Septemher 11^ 193J{.. 

89406—34 13 ( 351 ) 



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 
Retail Lumber, Lumber Products, Building Materials and Building 
Specialties Trade, submitted by the Retail Lumber and Building 
Material Code Authority. 

The purpose and effect of the amendment are to authorize the Code 
Authority and any division or subdivision agencies of the Code 
Authority to incorporate under the laws of any State or territory 
of the United States or of the District of Columbia. 

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 of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair compet- 
itive 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 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- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The amendment and the Code as amended are not designed to 
and will not permit monopolies or monopolistic practices. 

(d) The amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

For these reasons, I have approved this Amendment. 
Respectfully, 

Hugh S. Johnson, 

A dvunistrator. 
Sepi-ember 11, 1934. 

(352) 



AMENDMENT TO CODE OF FAIR COMPETITION FOK 
THE RETAIL LUMBER, LUMBER PRODUCTS, BUILD- 
ING MATERIALS AND BUILDING SPECIALTIES TRADE 

Amend Article VII by adding a new section as follows : 

10. The Code Authority and any division or subdivision agencies 
of the Code Authority may, upon submission to and approval by 
the Administrator of its proposed Articles or Certificate of Incor- 
poration and By-Laws, incorporate under the Laws of any State 
or Territory of the United States or of the District of Columbia, 
such corporation to be known, in the case of the Code Authority, 
as " Retail Lumber and Building Material Code Authority, Incor- 
porated ". The powers, duties, objects and purposes of said corpora- 
tion shall be limited in all respects to the powers, duties, objects and 
purposes of the Code Authority as provided in this Code, and the 
existence of the corporation shall be during the term of this Code. 
No amendment of either the Articles or Certificate of Incorporation 
or By-Laws of such corporation shall be made without the prior 
approval of the Administrator. If, at any time, the Administrator 
shall determine that the corporate status assumed by the Code Au- 
thority or any division or subdivision agency is interfering with the 
proper exercise of its powers and duties under this Code or is not 
effectuating the policies or purposes of the Act, he may, after such 
notice and hearing as he may deem necessary, require appropriate 
modifications of the structure of the corporation (if consistent with 
the law of the state of incorporation), the substitution of a corpora- 
tion 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 Trade or such other 
actions as he may deem expedient. 

Approved Code No. 33 — Amendment No. 3. 
Registry No. 313-04. 

(353) 



I 



Approved Code No. Ill — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

AIR TRANSPORT INDUSTRY 

As Approved on September 12, 1934 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Air Transport 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 Air Transport Industry, 
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 Presi- 
dent, including Executive Order No. 6543-A dated December 30, 
1933, and otherwise, do hereby incorporate, by reference, said an- 
nexed report and do find that said amendment and the Code as 
constituted after being amended comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said amendment be 
and it is hereby approved, and that the previous approval of said 
Code is hereby modified to include an approval of said Code in its 
entirety as amended; provided, however, that Section 5, of Article 
VI, and sub-section g, of Section 6 of Article VI, be and are hereby 
deleted. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
L. H. Peebles, 

Acting Division Adnmiistrator. 

Washington, D.C, 

September 12, 1931^. 

(355) 



REPORT TO THE PRESIDENT 

« 

The President, 

The White House. 

Sir : This is a report on an amendment to the Code of Fair Com- 
petition for the Air Transport Industry. The amendment was sub- 
mitted by the Code Authority for said Industry and was published 
on August 2, 1934. Opportunity to file Objections was aflforded all 
interested parties, and during the period designated to permit such 
opportunity, no objections were received. 

The amendment was submitted by the Code Authority in accord- 
ance with your Order of April 14, 1934. 

In final form this amendment has been approved by the Industrial 
Advisory Board, the Labor Advisory Board, the Consumers' Ad- 
visory Board, the Research and Planning Division and the Legal 
Division of the National Recovery Administration. 

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- 
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 purpose 
of cooperative action among trade groups, by inducing and main- 
taining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by in- 
creasing 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 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. 

(356) 



357 

(f ) Those engaged in any 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. 
September 12, 1934. 



I 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE AIR TRANSPORT INDUSTRY 

The Code of Fair Competition for the Air Transport Industry 
shall be amended by deleting subdivision F of Section 6, Article VI — 
ADMINISTRATION — and substituting in lieu thereof subdivision 
F: 

"(f) 1. It being found necessary in order to support the admin- 
istration of this code and to maintain the standards of fair competi- 
tion established 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. 

2. Each member of the industry shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the Code Authority, 
determined as hereinabove provided, and subject to rules and regu- 
lations pertaining thereto issued by the Administrator. Only mem- 
bers of the industry complying with the code and contributing to 
the expenses of its administration as hereinabove provided, (unless 
duly exempted from making such contributions), shall be entitled 
to participate in the selection of members of the Code Au- 
thority or to receive the benefits of any of its voluntary activities 
or to make use of any emblem or insignia of the National Recovery 
Administration. 

3. The Code Authority shall neither incur nor pa}^ 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 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. Ill — Amendment No. 1, 
Kogistiy No. 1741-2-04. 

(358) 



Approved Code No. 102 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SHOVEL, DRAGLINE, AND CRANE INDUSTRY 

As Approved on September 12, 1934 



ORDER 



Approving Modification of Code of Fair Competition for the 
Shovel, Dragline and Crane 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 a modi- 
fication to a Code of Fair Competition for the Shovel, Dragline and 
Crane Industry, and opportunity to be heard thereon having been 
duly noticed and the annexed report on said modification, containing 
findings with respect thereto, having been made and directed to the 
^rrGSiQGriij * 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate, by reference said an- 
nexed report and do find that said modification and the Code as 
constituted after being modified comply in all respects with the 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, 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, 
Administrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Division Administrator. 
Washington, D.C, 

Septemler 12, 1931^. 

(359) 



REPORT 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 Shovel, Dragline and Crane Industry to incorporate 
the principles contained in Executive Order of April 14, 1934 re- 
lating to collection of expenses of Code Administration. This Modi- 
fication was proposed in accordance with Article VIII of the Code 
as approved November 8, 1933, and Notice of Opportunity to be 
Heard was given from August 23 to September 5, 1934. 

FINDINGS 

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

I find that : 

(a) The Modification to said Code and the Code as modified are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
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 imder 
adequate governmental sanction and supervision, by eliminating un- 
fair competitive practices, by promoting the fullest possible utiliza- 
tion of the present productive capacity of industries, by avoiding 
undue restriction of production (except as may be temporarily re- 
quired), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) The Code as modified complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(c) The Modification and the Code as modified are not designed 
to and will not permit monopolies or monopolistic practices. 

(d) The Modification and the Code as modified are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(360) 



361 

(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 waiting period as provided in the 
Order of Approval. 
Kespectfully, 

Hugh S. Johnson, 

Administrator. 
September 12, 1934. 



MODIFICATION OF CODE OF FAIR COMPETITION FOR 
THE SHOVEL, DRAGLINE AND CRANE INDUSTRY 

Purpose 

Pursuant to Article VIII of the Code of Fair Competition for 
the Shovel, Dragline and Crane Industry, duly approved by the 
Administrator on November 8, 1933, and further to effectuate the 
policies of Title I of the National Industrial Recovery Act, the fol- 
lowing modification is established as a part of said Code of Fair 
Competition and shall be binding upon every member of the Shovel, 
Dragline and Crane Industry. 

Modification 

Delete Paragraph C, Section 1 of Article VI, and substitute in 
lieu thereof the following: 

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

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

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem 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 
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 voluntarj^ activities 
or to make use of any emblem or insignia of the National Recovery 
Administration. 

(362) 



363 

(3) 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 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 havo so approved. 

Approved Code No. 102 — ^Amendment No. 2. 
Registry No. 1329-1—01. 



Approved Code No. 278 — ^Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

TRUCKING INDUSTRY 

As Approved on September 12, 1934 



OKDER 



Approving Amendment of Code of Fair Competition for the 
Trucking Industry 

WHEREAS, an application has 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, for approval of an 
amendment to the Code of Fair Competition for the Trucking 
Industry; and 

WHEREAS, an opportunity has been duly afforded to all mem- 
bers of the Industry to object to said amendment ; and 

WHEREAS, the annexed report on said amendment containing 
findings with respect thereto has been made and directed to the 
President; and 

WHEREAS, in my order dated May 10, 1934 approving the 
Budget submitted by the Code Authority for said Industry I speci- 
fied that no payments be made by the Code Authority for the ex- 
penses of establishing the Code except upon my further order; 

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 amendment and the Code as 
constituted after being amended comj)ly in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said amendment 
be and it is hereby approved; and that the previous approval of 
said Code is hereby amended to include an approval of said Code 
in its entirety as amended. 

And I do further order that said Budget with the exception of 
that portion thereof allocated by said Code Authority to the expenses 
of establishing said Code be and the same is hereby reapproved, 
provided, however, that no funds collected by said Code Authority 

(365) 



366 

after the date of this Order shall be used for the purpose of defray- 
ing the expenses of establishing the Code. 

Hur.ii S. Johnson, 
AdininUtrator for Industrial Recovery. 

Approval recommended : 
L. H. Peebles, 

Acting Division Administrator. 

Washington, D.C, 

September 12, 193^. 



KEPORT TO THE PRESIDENT 

The President, 

The 'White House. 

Sir : This is a report on an amendment to the Code of Fair Com- 
petition for the Trucking Industry. Tlie amendment was submitted 
by the National Code Authority for said Industry and was pub- 
lished on August 10, 1934. Opportunity to file objections was af- 
forded to all interested parties, and during the period designated to 
permit such opportunity, no objections were received. 

In final form this amendment has been approved by the Indus- 
trial Advisory Board, the Labor Advisory Board, the Consumers' 
Advisory Board, the Research and Planning Division and the Legal 
Division of the National Recovery Administration. 

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

I find that : 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act, including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general wel- 
fare by promoting the organization of industry for the purpose of 
cooperative action among trade groups, by inducing and maintaining 
united action of labor and management under adequate governmental 
sanction and supervision, by eliminating unfair competitive practices, 
by promoting the fullest possible utilization of the present produc- 
tive capacity of industries, by avoiding undue restriction of produc- 
tion (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) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation sub-section (a) of Section 3, sub-section (a) of Section 7, and 
sub-section (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said 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 any 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. 
September 12, 1934. 

89406 — 34 14 (367) 



AMENDMENT TO CODE OF FAIK COMPETITION FOR 
THE TRUCKING INDUSTRY 

Amend Article III, A(l) by striking out Subsection (h). and 
changing the lettering of the Subsections following accordingly. 

Strike out from line three of Article III, A(l) Subsection (i) 
the words " have assented to and ". 

Strike out from line six of Article III, A (3) the words "assent- 
ing to the Code ". 

Amend Article III, B, by striking out Section 4 and substituting 
the following: 

4. It being found necessary in order to support administration of 
this Code and to maintain the standards of fair competition estab- 
lished by this Code and to effectuate the policy of the Act, the 
National 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 fore- 
going purposCj and 

(2) An equitable basis upon which the funds necessary to support 
such budget shall be contributed by 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. 

5. 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. 
Onl}' members of the Industry complying with the Code and con- 
tributing to the expenses of its administration as hereinbefore 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. 

6. 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 sliall 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 deficient 
item for expenditures in excess of prior budget estimates except 
those which the Administrator shall have so approved. 

Amend Article III, B, by changing the numbering of the present 
Section 5 to Section 7. 

Approved Code No. 278 — Ameiulinent No. 3. 
Registry 1411-61. 

(3G8) 



Approved Code No. 11/Cl — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WIRE REINFORCEMENT INDUSTRY 

As Approved on September 12, 1934 



ORDER 



Modifying and Amplifying Administrative Order No. 11/Cl-l 
Dated August 13, 1934, Approving the Approved Code for the 
Iron and Steel Industry as the Code of Fair Competition for 
THE Wire Reinforcement Industry 

Having considered suggestions submitted by the applicant Asso- 
ciation which submitted the application referred to in Administra- 
tive Order No. 11/Cl-l dated August 13, 1934, for codification by 
consolidation under the approved Code of Fair Competition for the 
Iron and Steel Industry and for the approval of said Code as the 
Code of Fair Competition for the Wire Reinforcement Industry; 
and no other criticisms of, objections to, or suggestions for the modi- 
fication or amplification of, said Administrative Order or of the 
approval of said first mentioned Code as the Code of Fair Compe- 
tition for said Wire Reinforcement Industry having been submitted 
as provided for in Administrative Order No. ll/Cl-2 dated August 
13, 1934, and the affective date of said Administrative Order No. 
11/Cl-l having been extended to September 15, 1934, by Adminis- 
trative Order No. ll/Cl-3 dated August 22, 1934; 

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 modify and amplify said Adminis- 
trative Order No. 11/Cl-l and do order as follows : 

(1) The definition of the Wire Reinforcement Industry as set 
forth in said order is hereby modified to read, and the Wire Rein- 
forcement Industry to which said order applies is hereby defined, 
as follows : 

The business of manufacturing or causing to be manufactured in 
the United States and selling the following described products : 
Mesh, Fabric or Mats made from plain or galvanized drawn wire 
of iron or steel or from iron or steel wire rods, in which the members 

(369) 



370 

are attached at their intersections, in which no members are spaced 
less than two inches center to center, and which is designed for use 
for reinforcing concrete pavements, the floors or other structural 
elements of buildings, concrete sewers or pipe, or any construction or 
manufactured product involving the use of Portland Cement, 
Gj'psum or other i)lastic material ; but not including " paper back " 
fabric or other fabric when used as a base or reinforcement for 
plaster or stucco. 

(2) The basing points for the above-described products of said 
Industry to which the applicable provisions of the Code of Fair 
Competition for the Iron and Steel Industry shall apply shall be as 
follows: Pittsburgh, Pa., Anderson, Ind., Chicago, 111., (woven wire 
mesh only) and the Pacific Coast Ports enumerated in Schedule F 
of said Code. 

(3) In any case in which by the provisions of said Code the mem- 
bers thereof are, or have been required to do any act or thing, within 
any period of time or on or prior to any date therein specified, which 
period of time or date has expired prior to the date of this order, the 
time within which the members of the Wire Reinforcement Industry 
shall be required to do the act or thing as prescribed by said respec- 
tive provisions shall be the period terminating on December 31, 1934. 

(4) Any amendment that shall hereafter be made to said Code of 
Fair Competition for the Iron and Steel Industry shall apply to and 
constitute an amendment of the Code constituted by said Adminis- 
trative Order No. 11/Cl-l as modified and amplified by this order 
as the Code of Fair Competition for the Wire Reinforcement In- 
dustry, and, subject to earlier termination or modification, this order 
shall continue in effect so long as said Code of Fair Competition for 
the Iron and Steel Industry shall be in effect. 

This order shall become effective the 16th day of September, 1934, 
unless prior to that date good cause to the contrary is shown to me 
and I, by my further order, otherwise direct. 

Hugh S. Johnson, 
AdmirdstratOT for Industrial Recovery. 

Approval recommended : 
Joseph F. Battlet, 

Acting Division Administrator. 

Washington, D.C, 

September 12, 193^. 

Approved Code No. 11/Cl — Amendment No. 1. 
Registry No. 1151-11. 



Approved Code No. 438 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

ABRASIVE GRAIN INDUSTRY 

As Approved on September 13, 1934 



ORDER 



Approving MoDincAxiOiSr or Code or Fair Competition for the 
Abrasi\^b Grain Industry 

An application having been duly made pursuant to and in full 
-compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a modifica- 
tion to a Code of Fair Competition for the Abrasive Grain Industry, 
and as contained in a Published Notice of Opportunity to be Heard, 
Administrative Order No. 438-3, dated July 25, 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 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 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 modification 
l)e 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, 
AdmAnistrator far Industrial Recovery. 

Approval recommended : 
C. E. Adams, 

Division Administrator. 

Washington, D.C, 

September 13, 1934. 

(371) 



REPORT TO THE PRESIDENT 

The President, 

The White House 

Sir : An application having been duly made pursuant to and in 
full compliance with the provisions of the National Industrial Re- 
covery Act, for a modification to the Code of Fair Competition for 
the Abrasive Grain Industry, submitted by the Code Authority for 
the Abrasive Grain Industry. 

The purpose and effect of the modification is 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 re])ort to me on said modi- 
fication of said Code having found as herein set forth and on the 
basis of all the proceedings in this matter : I find that : 

(a) The modification of said Code and the Code as modified are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among Trade Groups by inducing and main- 
taining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of the industries, by avoiding undue 
restriction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as modified complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Su])section (b) of Section 10 thereof. 

(c) The Code emj)owers 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. 

(372) 



373 

(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, 

Administrator. 
September 13, 1934. 



MODIFICATION OF CODE OF FAIR COMPETITION FOR 
THE ABRASIVE GRAIN INDUSTRY 

Modify Article VI, Section 1, by eliminating subsection (b) and 
by substituting in lieu thereof the following: 

(b) 1. It being found necessar}^ in order to sujjport the adminis- 
tration of this code and to maintain the standards of fair competi- 
tion established hereunder and to effectuate the polic)^ of the Act, 
the Code Authority is authorized : 

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

To submit to the Administrator for his approval, subject to such 
notice and opportunity to be heard as he may deem necessary (1) an 
itemized budget of its 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; 

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 necessary, to institute legal proceedings therefor in its own 
name. 

2. Each member of the industry shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the Code Authority, 
determined as hereinabove provided, and subject to rules and regu- 
lations pertaining thereto issued by the Administrator. Only mem- 
bers of the industry complying with the code and contributing to the 
expenses of its administration as hereinabove provided, (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 
substantially in excess of the amount thereof as estimated in its ap- 
proved budget, and shall in no event exceed the total amount con- 
tained in the ai)proved 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. 

Modify Article VI, Section 2 by eliminating sub-section (f) and 
sub-section (g) and changing (h) to (f) and (i) to (g) and (j) 
to (h). 

Approved Code No. 438 — Amendment No. 1. 
Registry No. 1001-04. 

(374) 



Approved Code No. 69 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MILLINERY AND DRESS TRIMMING BRAID AND 
TEXTILE INDUSTRY 

As Approved on September 13, 1934 



ORDER 



Approving Amendments to Code of Fair CompeIition for the 
Millinery and Dress Trimming Braid and 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 amendments 
to a Code of Fair Competition for the Millinery and Dress Trimming 
Braid and Textile Industry, and hearings having been duly held 
thereon and the annexed report on said amendments containing find- 
ings with respect thereto, having been made and directed to the 

r^T'PmrlPTlt' * 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Pres- 
ident, including Executive Order 6543-A, dated December 30, 1933, 
and otherwise, do hereby incorporate by reference, said annexed 
report and do find that said 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 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, 
Adininistrafor for Industrial Recovery. 

Approval recommended : 

William P. Farnsworth, 

Acting Division Administrator. 

Washington, D.C, 

Septemher 13, 193^. 

(375) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : The Code Authority for the Code of Fair Competition for the 
Millinery and Dress Trimming Braid and Textile Industry, sub- 
mitted proposed amendments to this Code. After conferring with 
members of the Code Authority and representatives of the various 
advisory boards of the National Recovery Administration, a hearing 
was prepared for and held on May 10, 1934, following which, revision 
of the amendments was made. 

Amendment No. 1, amended Article V, Section 2, by changing the 
wording without any material effect on the provision as it existed 
formerl}^ 

Amendment No. 2, added a new article to be known as Article XII, 
setting up Fair Trade Practices, which prohibited inaccurate adver- 
tising, inaccurate billing, inaccurate labeling, inaccurate reference 
to competitors, threats of law suits, secret rebates, bribing employees, 
return of merchandise. 

Amendment No. 3, amended Article VI, Section (b) by adding a 
provision which empowered the Code Authority to appoint commit- 
tees for the purpose of studying and adjusting problems of over- 
lapping jurisdiction of Codes, obtaining information and reports 
necessary for the administration of the Code and to delegate power 
to the Code Authority to initiate recommendations for modification 
or amendment of the Code. 

Amendment No. 4, eliminated Section 5 of Article VI (a) and sub- 
stituted for Section 5, procedure for assessment of members of the 
Industry. 

In final form, these amendments have been approved by the fol- 
lowing Advisory Boards of the National Recovery Administration : 
the Industrial Advisory Board, the Labor Advisory Board, the Re- 
search and Planning Division, the Legal Division and, with the 
exception of two minor objections which have been satisfactorily 
explained by the Deputy Administrator, by the Consumers' Advisory 
Board, and have received the assent of the Code Authority. 

The Deputy Administrator, in ]iis final report to me on the 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 pur]:)Oses of Title I of the 
National Industrial Recovery Act, including the removal of objec- 
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- 

(376) 



377 

ing united action of Labor and management under adequate Govern- 
ment sanction and supervision, by eliminating unfair competitive 
practices by promoting the fullest possible utilization of the produc- 
tive cajjacity of industry, by avoiding undue restriction of production 
(except as may be temporarily required), by increasing the consump- 
tion of industrial and agricultural products through increasing pur- 
chasing power, b}^ reducing and relieving unemployment, by improv- 
ing standards of labor and by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects to the pertinent 
provisions of said Title I 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 amendments to 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 oper- 
ate 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 the removal of said 
amendment. 

For these reasons, these amendments have been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
September 13, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOK 
THE MILLINERY AND DRESS TRIMMING BRAID AND 
TEXTILE INDUSTRY 

Amendment I 

Amend Article V, Section 2, by altering comma after the words 
" sold and unsold, in the same terms " to semicolon and adding the 
word " sales " directly thereafter to read as follows : 

"(2) Reports of Production^ Sales ^ Stock, and Orders. — Returns 
showing production in terms of commonly used units, i.e., gross 
yards or pounds, or pieces; stock on hand, both sold and unsold, in 
the same terms; sales and unfilled orders stated also in the same 
terms. These returns are to be confined to staple construction of 
millinery textiles." 

Amendment II 

There shall be added a new article to be known as Article XII and- 
entitled Fair Trade Practices as follows : 

(a) Inaccurate Advertising. — No member of the Industry shall 
publish advertising (whether printed, radio, display or of any other- 
nature) which is misleading or inaccurate in any material particu- 
lar, nor shall any member in any way misrepresent any goods (in- 
cluding but without limitation to its use, trade-mark, quality, origin, 
size, substance, character, nature, finish, material, content or prepa- 
ration) or credit terms, values, policies, services, or the nature or 
form of the business conducted. 

(b) Inaccurate Billing. — No member of the Industry shall know- 
ingly withhold from oV insert in any quotation or invoice any 
statement that makes it inaccurate in any material particular. 

(c) Inaccurate Labelling. — No member of the Industry shall 
brand or mark or pack any goods in any manner Avhich is intended 
to or does deceive or mislead purchasers with respect to the brand, 
grade, quality, origin, size, substance, character, nature, finish, ma- 
terial content or preparation of such goods. 

(d) Inaccurate Reference to Competitors, etc. — No member of the 
Industry shall in its advertising or other representation refer inac- 
curately in any material particular to any competitor or to their 
goods, prices, values, credit terms, policies, or services. 

(e) Threats of Law Suits. — No member of the Industry shall pub- 
lish or circulate unjustified or unwarranted threats of legal proceed- 
ings which tend to or have the effect of harassing or injuring com- 
petitors or intimidating their customers. Failure to prosecute in 
due course shall be evidence that any such threat is unwarranted or 
unjustified. 

(f) Secret Rehates. — No member of the Industry shall secretly 
offer or make any payment of allowance of a rebate, refund, com- 
mission, credit, unearned discount or excess allowance, whether in. 

(378) 



379 

the form of money or otherwise, nor shall a member of the Industry 
secretly offer or extend to any customer any special service or privi- 
lege not extended to all customers of the same class, for the purpose 
of influencing a sale. 

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

(h) Return of Merchandise. — In accordance with such rules and 
regulations as the Code Authority shall issue and the Administrator" 
shall approve, and after such approval no member of the Industry 
or his agencj'^ shall directly or indirectly : 

(1) Accept for credit the return of the whole or any part of 
merchandise, where the same has been selected and purchased by the 
customer or his agent and shipped pursuant to written order. 

(2) Accept the return of any merchandise shipped to customers 
nor allow credit therefor, nor exchange the same where such articles 
have been shipped in accordance with specifications and in full com- 
pliance with written order, and where such articles have been in the 
possession of the purchaser for more than five (5) days, unless such 
articles are returned because of latent defects not discoverable by 
reasonable inspection. 

Amendment III 

Article VI, Section (b), shall be amended by adding the following 
subsections : 

6. To appoint a committee to meet with committees of other Code 
Authorities to study and adjust any problems of overlapping juris- 
diction of codes and to determine specific procedures to be followed 
where certain processes in industries covered by other codes are or 
may be the same as processes covered by this Code, provided that 
■determination of said committee or committees shall be subject to 
review by the Administrator. 

7. 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. 

8. To adopt by-laws and rules and regulations for its procedure. 

9. To obtain from members of the Industry such information and 
reports as are required for the administration of the Code. In addi- 
tion to information required to be submitted to the Code Authority, 
members of the 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 obli- 
gations to furnish reports to any Government Agency. No indi- 



380 

vidual report shall be disclosed to any other member of the Industry 
or any otlier party except to such other Governmental Agencies as 
may be directed by the Administrator. 

10. To use such trade association 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. 

11. To make recommendations to the Administrator for the coordi- 
nation of the Administration of this Code with such other codes, 
if any, as may be related to or affect members of the Industry. 

12. To cooperate with the Administrator in regulating the use of 
an}' N.R.A. insignia by members of the Industry. 

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

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

(c) 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. 

Amendment IV 

Article VI (a) Section 5 bo eliminated and the following amend- 
ment substituted and approved as follows : 

Section 5. It being found necessary in order to support the admin- 
istration of this Code and to maintain the standards of fair competi- 
tion established hereiuider 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 purjioses, 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- 



381 

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 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 (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 
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. 69 — Amendment No. 1. 
Registry No. 247-1-05. 



Approved Code No. 201G — Amendment No. 2 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

RADIO WHOLESALING TRADE 

As Approved on September 13, 1934 



ORDER 



Approving Amendment to Supplementary Code of Fair Competi- 
tion FOR THE Radio Wholesaling 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 an amend- 
ment to a Supplementary Code of Fair Competition for the Radio 
Wholesaling Trade to the Code of Fair Competition for the Whole- 
saling or Distributing Trade, and opportunity to be heard thereon 
having been given and the annexed report on said amendment, con- 
taining findings with respect thereto, having been made and directed 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 654:3-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference, said 
annexed report and do find that said amendment and the Supple- 
mentary Code as constituted after being amended comply 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 
amendment be and it is hereby approved, and that the previous ap- 
proval of said Supplementary Code is hereby amended to include an 
approval of said Supplementary Code in its entirety as amended. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Robert L. Houston, 

Division Administrator. 

Washington, D.C, 

September 13, 1934. 

88406—34 15 (383) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the amendment of the Supplementary Code- 
of Fair Competition for the Radio Wholesaling Trade as approved 
by me on April 21, 1934. Application was made under date of 
July 13, 1934, by the Divisional Code Authority for the Radio 
Wholesaling Trade, for amendment of the provisions of Article III, 
Section 1 (a) of the Code. Fair notice of opportunity to file 
objections to this amendment was given to all interested parties. 

This amendment increases the membership of the Divisional Code 
Authority from twelve (12) members to nineteen (19) members. 

This amendment does not in any way affect the labor provisions of 
the Supplementary Code or anything other than increasing the Codte 
Authority membership. 

The Deputy Administrator in his final report to me on said amend- 
ment to said Supplementary 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 Supplementary Code and the Sup- 
plementary 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 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 trade groups, by 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 utilization of the present productive capacity 
of industries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

(b) The Supplementary Code as amended complies in all rer- 
spects with tlie pertinent provisions of said Title of said Act, includ- 
ing without limitation subsection (a) of Section 3, Subsection (a) of 
Section 7, and Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Divisional Code Authority to present 
the aforesaid amendment on behalf of the Trade as a whole. 

(d) The amendment and the Supplementary Code as amended 
are not designed to and will not permit monopolies or monopolistic 
practices. 

(e) The amendment and the Supplementary Code as amended are 
not designed to and will not eliminate or oppress small enterprises 
and will not operate to discriminate against them. 

(884) 



385 

(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, I have approved this amendment to the Supple- 
mentary Code of Fair Competition for the Radio Wholesaling Trade. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
September 13, 1934. 



AMENDMENT TO SUPPLEMENTARY CODE OF 

FAIR COMPETITION FOR THE RADIO 

WHOLESALING TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

Modify Article III by deleting Section 1 (a) and substituting in 
lieu thereof the following : 

Section 1. Divisional Code Authority Membership. — (a) The 
Divisional Code Authority shall consist of nineteen (19) members of 
the Trade: One (1) to be the President of the R.W.A.; one (1) to 
be the Executive Vice President of the R.W.A. ; thirteen (13) to be 
chosen by the Board of Directors of the R.W.A. to represent its mem- 
bers in various geographical sections of the country; and four (4) 
members to be chosen from members of the Trade who are not mem- 
bers of the R.W.A., in a manner to be approved by the Administrator. 

Approved Cotle No. 201G — Amendment No. 2. 
Registry No. 1327-3-03. 

(386) 



Approved Code No. 393 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SOFT FIBRE MANUFACTURING INDUSTRY 

As Approved on September 13, 1934 



ORDEK 



Approving Amendment to the Code of Fair Competition for the 
Soft Fibre Manufacturing Industry 

An aiDplication having been duly made pursuant to and in full 
comi^liance with the provisions of Title I of the National Industrial 
Kecovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Soft Fibre Manufac- 
turing Industry, and an opportunity to be heard thereon having 
been given 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 Uniteci 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise, do hereby incorporate, by reference, said an- 
nexed report and do find that said amendment and the Code as 
constituted after being amended comply in all respects with the 
pertinent provisions and will promote the policj^ 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 : 
Prentiss L. Coonley, 

Acting Division Administrator. 

Washington, D.C, 

September 13, 1934. 

(387) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on an amendment to the Code of Fair Compe- 
tition for the Soft Fibre Manufacturing Industry. Notice of Oppor- 
tunity to be Heard on this amendment was published on August 24, 
1934; no objections were received within the given fifteen (15) day 
period ending September 8, 1934. The amendment, which is at- 
tached, was presented by duly qualified and authorized representa- 
tives of the Industry, complying with statutory requirements and 
being the duly constituted Code Authority under the provisions of 
said Code for said Industry. 

This amendment provides for assessment of the members of the 
Soft Fibre Manufacturing Industry to defray the expenses of the 
Code Authorit}^, as set forth in Executive Order No. 6676, dated 
April 14, 1934. 

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

I find that : 

(a) The amendment to said Code and the Code as amended 
are well designed to promote the policies and purposes of Title I 
of the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for 
the general welfare by promoting the organization of industry for 
the purpose of cooperative action of labor and management under 
adequate governmental sanction and supervision, by eliminating un- 
fair competitive practices, by promoting the fullest possible utiliza- 
tion of the present productive capacity of industries, by avoiding 
undue restriction of production (except as may be temporarily re- 
quired), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent 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 Authority is empowered to present the aforesaid 
amendment on behalf of the Industry as a whole. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(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. 

(388) 



389 

(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 dministrator. 
-September 13, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE SOFT FIBRE MANUFACTURING INDUSTRY 

Article VI, Section 4, is hereby amended to read as follows : 

4. 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 
projDer 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 ks 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. 

5. 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 b}^ 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 
participate in the selection of members of the Code Authority or to 
receive the benefits of an}- of its voluntary activities or to make use 
of any emblem or insignia of the National Recovery Administration. 

6. The Code Authority shall neither incur nor pay any obligations 
substantially in excess of the amount thereof as estimated in its ap- 
proved budget, and shall in no event exceed the total amount con- 
tained 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. 

Change the Section numbers of Article VI as follows : 5 to 7 ; G to 
8, delete (d) of this Section and change (e), (f), (g), (h), and (i) to 
(d), (e), (i), (g), and (h) respectively; and 7 to 9. 

Approved Code No. 393 — Amendment No. 1. 
Registry 242-1-02. 

(390) 



Approved Code No. 309 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SOLID BRAIDED CORD INDUSTRY 

As Approved on September 13, 1934 



ORDER 



Code of Fair Competition for the Solid Braided Cord 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 Solid Braided 
Cord Industry, and hearing having been duly held thereon and the 
annexed report on said amendment containing findings with respect 
thereto having been made and directed to the President; 

NOAV, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise, do hereby incorporate, by reference, said 
annexed report and do find that said 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, 
Admimstrator for Industrial Recovery. 

Approval recommended: 
Prentiss L. Coonley, 

Acting Division Administrator. 

Washington, D.C, 

Septemler 13, 193J^. 

(391) 



REPORT TO THE PRESIDENT 

The Pkesident, 

The White House. 

Sir : This is a report on an amendment to the Code of Fair Com- 
petition for the Solid Braided Cord Industry. Notice of Oppor- 
tunity to be Heard on this amendment was published on June 18, 
1934; no objections were received -within the given fifteen (15) day 
period ending July 3, 1934. The amendment, which is attached, was 
presented by duly qualified and authorized representatives of the 
Industry, complying with statutory requirements and being the duly 
constituted Code Authority under the provisions of the said Code for 
said Industry. 

This amendment provides for assessment of the members of the 
Solid Braided Cord Industry to defray the expenses of the Code 
Authority as set forth in Executive Order No. 6678, dated April 
14, 1934. 

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 of l-abor 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 limi- 
tation sub-section (a) of Section 3, sub-section (a) of Section 7 and 
sub-section (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said 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. 

(392) 



393 

(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 those reasons the amendment has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator, 
September 13, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
SOLID BRAIDED CORD INDUSTRY 

Article IX, Section 8 and Section 9, of the Code of Fair Competi- 
tion for the Solid Braided Cord Industry shall be amended to read 
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 compe- 
tition 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 
proj^er 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 
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 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. 

9. (a) The Code Authority shall neither incur nor pay any obli- 
gations 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 expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Approved Code No. 309 — Amendment No. 1. 
Registry No. 219-01. 

(394) 



1 



Approved Code No. 407 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

DRY COLOR INDUSTRY 

As Approved on September 14, 1934 



ORDER 



Approving Amendments or Code of Fair Competition for the Dry 

Color Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of amendments 
to a Code of Fair Competition for the Dry Color Industry, and 
opportunity to be heard having been afforded all interested parties, 
and any objections filed having been duly considered, 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, 
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 modified to include an approval of said Code 
in its entirety as amended. 

Hugh S. Johnson, 
Administrator for Indtustrial Recovery. 

Approval recommended : 
Joseph F. Battley, 
Acting Division Administrator. 

Washington, D.C, 

September H, 1981^. 

(395) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the proposed amendments to the Code of 
Fair Competition for the Dry Color Industry as approved by you 
on April 25, 1934. A notice of opportunity to be heard has been 
X)ublished, giving all interested parties full opportunity to be heard. 

This report covers two amendments, the purposes and effects of 
which are as follows: 

Amendment No. 1 provides that the Code Authority will be noti- 
fied by the impartial agency, to whom assessments are to be paid, 
of all failures to pay such assessments in order that suitable action 
may be taken b}^ the Code Authority as provided in the Code. 

Amendment No. 2 enables the Code Authority to incur such rea- 
sonable obligations as are necessary for the administration of the 
Code. It requires that the Code Authority submit for the 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 Code Authority by members of the Industry is made mandatory 
by this amendment if their principal line of business is covered by 
this Code. 

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 aro 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair 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 other- 
wise 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- 

(396) 



397 

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. 

(d) These amendments and the Code as amended are not de- 
signed to and will not permit monopolies or monopolistic practices. 

(e) These 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, 

Admmistrator. 
September 14, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE DRY COLOR INDUSTRY 

Amendment 1. Modify Article VI, Section 4 (a), by adding 
thereto the following words : " provided, however, that if the impar- 
tial agency shall report that any member of the Industry has for 
sixty (60) days after the date of mailing the notice of the assessment 
failed to j3ay such assessment, the amount of such assessment shall be 
made known to the Code Authority for the purpose of taking any 
action authorized by Section 4 (e) of Article VI of the Code." 

Amendment 2. Delete Section 4 (e) of Article VI and substitute 
therefor the following: 

"(e) 1. It being found necessary in order to support the adminis- 
tration of this Code and to maintain the standards of fair competi- 
tion established hereunder and to effectuate the policy of the Act, 
the Code Authority is authorized : 

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

"(b) To submit to the Administrator for his approval, sub- 
ject to such notice and opportunity to be heard as he may deem 
necessary (1) an itemized budget of its estimated expenses for 
the foregoing purposes, and (2) an equitable basis upon which 
the funds necessary to support such budget shall be contributed 
by members of the Dry Color 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 Dry 
Color Industry, and to that end, if necessary, to institute legal 
proceedings therefor in its own luune. 
"2. Each member of the Dry Color 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 j^ertaining thereto issued by the Adminis- 
trator. Only members of the Industry complying with the Code 
and contributing to the expenses of its administration as herein- 
above provided (unless duly exempted from makinp; such contribu- 
tion), shall be entitled to participate in the selection of the Code 
Authority or to receive the benefits of any of its voluntary activities 

(308) 



i 



399 

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 
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. 407 — Amendment No. 1. 
Registry No. 607-1-01. 



89406—34 16 



I 



Approved Code No. 170 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

GRINDING WHEEL INDUSTRY 

As Approved on September 14, 1934 



ORDER 



Approving Modification of Code of Fair Competition for the 
Grinding Wheel 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 Grinding Wheel Indus- 
try, and as contained in a Published Notice of Opportunity to be 
Heard, Administrative Order No. 170-6, dated July 25, 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 directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate, by reference, said 
annexed report and do find that said modification and the Code as 
constituted after being modified comply in all respects with the 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, 
Administi'otor for Industrial Recovery. 

Approval recommended: 
C. E. Adams, 

Division Administrator. 

Washington, D.C, 

September 11^^ 19$1^. 

(401) 



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 a modification of the Code of Fair Competition for the 
Grinding Wheel Industry, submitted by the Code Authority for the 
Grinding Wheel Industry. 

The purpose and effect of the modification is 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 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 
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 
Avelfare by promoting the organization of industry for the purpose 
of cooperative action among Trade Groups by inducing and main- 
taining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of the industries, by avoiding undue 
restrictions of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving 
unemployment, bv improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as modified 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 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. 

(402) 



403 

(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, 

Administrator. 
September 14, 1934. 



MODIFICATION OF CODE OF FAIR COMPETITION FOR 
THE GRINDING WHEEL INDUSTRY 

Modify Article VII, Section 1, by eliminating subsection (f ) and 
by substituting in lieu thereof the following: 

(f) (1) It being found necessary in order to support the admin- 
istration of this code and to maintain the standards of fair compe- 
tition established hereunder and to effectuate the policy of the Act, 
the Code Authority is authorized : 

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

To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he maj'^ 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; 

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 there- 
for 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 hereinaboA^e provided, and subject to rules and 
regulations pertaining thereto issued by the Administrator. Only 
members of the industry complying with the code and contributing 
to the expenses of its administration as hereinabove provided, (unless 
duly exemiDted from making such contributions,) 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 ac- 
tivities 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 
substantially in excess of the amount thereof as estimated in its ap- 
proved budget, and shall in no event exceed the total amount con- 
tained in the 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. 170 — Amendment No. 1. 
Registry No. 1001-03. 

(404) 



Approved Code No. 9 — Amendment No. 21 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 

As Approved on September 14, 1934 

ORDER 

Approving Amendment 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 an amend- 
ment to the Code of Fair Competition for the Lumber and Timber 
Products Industry, and hearings having been duly held thereon 
and the annexed report on said amendment, containing findings vs^ith 
respect thereto, having been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the "United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate, by reference, said 
annexed report and do find that said amendment and the Code as 
constituted after being amended comply in all respects with the per- 
tinent provisions and will promote the policy and purposes of said 
Title of said Act, and do hereby order that said amendment be and 
it is hereby approved, and that the previous approval of said Code 
is hereby modified to include an approval of said Code in its 
entirety as amended. 

Hugh S. Johnson, 
AdrrdnistratoT for Industrial Recovery. 

Approval recommended: 
C. E. Adams, 

Division Administrator. 

Washington, D.C, 

September i^, 193^. 

(405) 



KEPORT 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 Public Hearing on Amendment No. 31 to that 
Code conducted in Washington, D. C. beginning on January 22, 1934, 
in accordance with the National Industrial Recovery Act. 

The Amendment contemplates a reduction in the minimum wage 
rate in the Wooden Package Division in the state of Colorado north 
of 38° north latitude to thirty cents per hour. 

It is believed that such a reduction will more equitably effectuate 
the purposes and policies of the Act and the National Recovery 
Administration by equalizing the wage burden and thereby bring 
about " fair competition ". 

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

I find that : 

(a) The Amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for the 
general welfare by promoting the organization of industrj^ 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 
restrictions of ])roduction (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said Amendment on behalf of the industry as a whole. 

(d) The Amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The Amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(406) 



407 

(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, 

Administrator. 
September 14, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE LUMBER AND TIMBER PRODUCTS INDUSTRY 

Amendment No. 31 

In Article VII (d) in the paragraph headed " Wooden Package ". 
Division "A" strike out Subsection " g " and insert in lieu thereof 
the following : 

g. Pacific Wooden Box group (California, Oregon, Utah, 
Nevada, New Mexico, Arizona, and Colorado) : 

California, Oregon, Utah, Nevada 401^ 

Colorado (North of 38° North Latitude) 30* 

New Mexico, Arizona, and Colorado (Provisional) (South of 38° 

North Latitude) 23? 

Approved Code No. 9 — ^Amendment No. 21. 
Registry No. 313-1-06. 

(408) 



Approved Code No. 201H — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 

COMPETITION 

FOR THE 

WHOLESALE DRY GOODS TRADE 

As Approved on September 14, 1934 



ORDER 



Approving Amendments to Supplementary Code of Fair Compe- 
tition FOR THE Wholesale Dry Goods Trade 

A division of the wholesaling or distributing trade 

An application having been duly made pursuant to and in full 
compliance with the pro^dsions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of amendments 
to a Supplementary Code of Fair Competition for the Wholesale 
Dry Goods Trade to the Code of Fair Competition for the Whole- 
saling or Distributing Trade, and opportunity to be heard thereon 
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, 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 amendments and the Supple- 
mentary 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 Supplementary Code is hereby amended 
to include an approval of said Supplementary Code in its entirety 
as amended. 

Hugh S. Johnson, 
Administratar for Industrial Recovery. 

Approval recommended: 
Robert L. Houston, 

Division Administrator. 

Washington, D.C, 

Septemher U, 19S4. 

(409) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the amendments of the Supplementary- 
Code of Fair Competition for the Wholesale Dry Goods Trade as 
approved by me on May 14, 1934, Applications were made under 
date of July 6, 1934, by the Divisional Code Authority for the 
Wholesale Dry Goods Trade, for amendment of the provisions, of 
Article III, Section 3 (f). 

The amendments were drawn up and proposed in accordance with 
Executive Order No. 6678, dated April 14, 1934, and with the Legal 
Division's suggested wording for such amendments. It is intended 
that these amendments are to govern the collection of assessmeu'ts 
for code administration. 

These amendments do not in any way affect the labor provisions 
of the Supplementary Code or anything other than assessment for 
expenses of code administration. 

The Deputy Administrator in his final report to me on said amend- 
ments to said Supplementary 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 Supplementary Code and the Sup- 
plementarj^ Code as amended are well designed to promote the pol- 
icies and purposes of Title I of the National Industrial Recovery 
Act including the 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 welfai^ 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 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 
improving standards of labor, and by otherwise rehabilitating 
industry. 

(b) The Supplementary 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 Authority is empowered to present the aforesaid 
amendments. 

(d) The amendments and the Supplementary Code as amended are 
not designed to and will not permit monopolies or monopolistic 
practices. 

(410) 



411 

(e) The amendments and the Supplementary Code as amended 
are not designed to and will not eliminate or oj)press small enter- 
prises 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, I have approved these amendments to the 
Supplementary Code of Fair Competition for the Wholesale Dry 
Goods Trade. 

Respectfully, 

Hugh S. Johnson, 

A dministrator. 
September 14, 1934. 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE WHOLESALE DRY GOODS 
TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

Amend Article III, Section 3 (f ) by deleting the present Section 
3 (f) and inserting a new Section 3 (f) as follows: 

(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 nec- 
essary to support such budget shall be continued by members of the 
Trade ; 

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 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 
expense 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. 

(3) The Divisional Code Authority shall neither incur nor pay 
any obligation 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 
deficiency item for expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Approved Code No. 201H — Amendment No. 1. 
Registry No. 229-3-06. 

(412) 



APPENDIX 



Approved Code No. 84 — Appendix No. 1 
APPENDIX 

FOR THE 

FLY SWATTER MANUFACTURING INDUSTRY 

As Approved on September 7, 1934 



ORDER 



Approving Appendix for the Fly Swatter Manufacturing 

Industry 

a subdivision 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 4 of Article IV of the Code of Fair Competi- 
tion for the Fabricated Metal Products Manufacturing and Metal 
Finishing and Metal Coating Industry, approved November 2, 1933, 
as amended June 1, 1934, for approval of Appendix No. 1 establish- 
ing trade practice provisions for the Fly Swatter Manufacturing 
Subdivision of said Industry, and Notice of Opportunity to be Heard 
having been duly publicized, and no objections having been received 
thereon; and the annexed report on said Appendix No. 1 to 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 Appendix No, 1 to said Code 
complies in all respects with the pertinent provisions and will pro- 
mote the policy and purposes of said Title of said Act ; and do hereby 
order that said Appendix No, 1 of said Code of Fair Competition 
be and it is hereby approved ; provided, however, that the provisions 
of Section 8, insofar as they prohibit allowances for advertising, 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, 

89406—34 17 (413) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on Appendix No. 1 to the Code of Fair Com- 
petition for the Fabricated Metal Products Manufacturing and Metal 
Finishing and Metal Coating Industry, approved on November 2, 
1933, and as amended on June 1, 1934. 

GENERAL STATEMENT 

The Fly Swatter Manufacturing Industry, being truly representa- 
tive of this subdivision of the Fabricated Metal Products Manufac- 
turing and Metal Finishing and Metal Coating Industry, has elected 
to avail itself of the option of operating under the Code for the 
Fabricated Metal Products Manufacturing and Metal Finishing and 
Metal Coating Industry, as amended on June 1, 1934, with the as- 
sistance of additional fair trade practice provisions. 

RESUME OF THE APPENDIX 

Section 1 accurately defines the term " Fly Swatter Manufacturing 
Subdivision ". 

Section 2 sets up a governing body consisting of members of the 
Subdivision. 

Section 3 jDrovides for methods of setting up and revising price 
terms, and provides against actions which cause influences incon- 
sistent with the maintenance of a free and open market. 

Section 4 provides against shipments on consignment, except 
under peculiar circumstances. 

Section 5 provides against sales with the privilege of return. 

Section 6 provides against sales of commodities other than products 
of this subdivision for the purpose of influencing a sale of a product 
of this subdivision at prices below the invoice price plus all incidental 
costs of such products. 

Section 7 provides against the giving of prizes or gifts by any 
scheme which involves lottery, misrepresentation or fraud. 

Section 8 provides against allowances for special sales, special 
swatters or for advertising. 

Section 9 provides against the use of premiums which involve 
commercial bribery, lottery in any form, misrepresentation, fraud or 
deception in any form, and discrimination as between customers of 
the same class or same trade area. 

Section 10 provides against the distribution of samples unless 
charged for at not below regular jobbing prices plus transportation 
charges. 

Section 11 sets up rates of sales discounts for the products of the 
subdivision, and provides for post-dating of orders shipped during 
the first quarter of the year. 

(414) 



415 

Section 12 provides against guarantees or protection against mar- 
ket decline. 

Section 13 provides against the emploj^ment of a salesman or dis- 
tributor who is employed by or associated with (on a salary or 
other compensation basis) trade buyers, buying groups or jobbers 
who deal in fly swatters. 

Section 14 states the effective date of the Appendix, 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 
said Appendix No. 1 to said Code having found as herein set forth 
and on the basis of all the proceedings in this matter : 

I find that : 

(a) Said Appendix No. 1 to said Code is well designed to promote 
the policies and purposes of Title I of the National Industrial Re- 
covery Act, including removal of obstructions to the free flow of 
interstate and foreign commerce which tend to diminish the amount 
thereof and will provide for the general welfare by promoting the 
organization of industry for the purpose of cooperative action among 
the trade groups, by inducing and maintaining united action of labor 
and management under adequate governmental sanctions and 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 employ- 
ees; and is not classified by me as a major industry. 

(c) The Appendix No. 1 to said 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 association truly representative 
of the aforesaid Industry; and that said association imposes no 
inequitable restrictions on admission to membership therein. 

(d) The Appendix No. 1 to said Code is not designed to and will 
not permit monopolies or monopolistic practices. 

(e) The Appendix No. 1 to said 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 Appendix No. 1 of said Code. 

For these reasons, therefore, I have approved this Appendix No. 1 
of said Code. 

Respectfully, 

Hugh S. Johnson, 

A dministrator. 
September 7, 1934. 



CODE APPENDIX FOR THE FLY SWATTER 
MANUFACTURING INDUSTRY 

A SUBDIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING 
AND METAL FINISHING AND METAL COATING INDUSTRY 

Pursuant to Section 4 of Article IV, as amended on June 1, 1934, 
of this Code the following are established as additional trade prac- 
tice provisions and any member of the Fly Swatter Subdivision who 
directly or indirectly through any officer, employer, agent or rep- 
resentative violates or evades any of these trade practice provisions 
shall be guilty of violation of this Code : 

Section 1. The term " Fly Swatter Manufacturing Subdivision " 
is defined to mean and include the manufacture for sale of fly 
swatters. 

Section 2. The members of this subdivision shall set up a govern- 
ing body consisting of as many members as may be determined by 
and in a manner satisfactory to thp Code Authority or the Admin- 
istrator. 

Section 3. (a) Each member of the subdivision shall file with a 
confidential and disinterested agent of the governing body or, if 
none, then with such an agent designated by the Code Authority 
subject to the disapj^roval of the Administrator, identified lists of all 
his prices, discounts, rebates, allowances, and all other terms or 
conditions of sale including premiums, hereinafter in this Article 
referred to as price terms which lists shall completely and accurately 
conform to and represent the individual pricing practices of said 
member. Such lists shall contain the price terms for all such stand- 
ard products of the subdivision as are sold or offered for sale by said 
member and for such non-standard products of said member as 
shall be designated by the governing body. Said price terms shall 
in the first instance be filed witliin twenty days after the date of 
approval of this provision. Price terms and revised price terms 
shall become effective immediately upon receipt thereof by said 
agent. Immediately upon receipt thereof, said agent shall by tele- 
graph 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 simul- 
taneously distributed to all members of the subdivision and to all 
of their customers who have applied therefor and have offered to 
defray the cost actually incurred by the governing body in the 
prei)aration and distribution thereof and be available for inspec- 
tion 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 subdivision and their 
customers, as aforesaid; provided, that prices filed in the first in- 
stance shall not be released until the expiration of the aforesaid 

(41G) 



417 

twenty-day period after the approval of this provision. The gov- 
erning body shall maintain a permanent file of all price terms filed 
as herein provided, and shall not destroy any part of such records 
except upon written consent of the Administrator. Upon request 
the governing body shall furnish to the Administrator or any duly 
designated agent of the Administrator copies of any such lists or 
revisions of price terms. 

(b) When any member of the subdivision has filed any revision, 
such member shall not file a higher price within forty-eight hours. 

(c) No member of the subdivision shall sell or offer to sell any 
products of the subdivision for which price terms have been filed 
pursuant to the requirements of this provision, except in accordance 
with such price terms. 

(d) No member of the subdivision shall enter into any agreement, 
understanding, combination or conspiracy to fix or maintain price 
terms, nor cause or attempt to cause any member of the subdivision 
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 provision to create. 

Section 4. No member of the subdivision shall ship goods on con- 
signment except under circumstances to be defined by the governing 
body and approved by the Administrator, where peculiar circum- 
stances of the subdivision require the practice. 

Section 5. No member of the subdivision shall sell or offer to 
sell any products of the subdivision with the privilege of return, 
nor accept the return of any products of the subdivision delivered 
on a bona fide order, provided, however, that the provisions of this 
section shall not apply to sales or deliveries of goods which are de- 
fective, or not in accord with the specifications of the order under 
which they were sold and delivered, or other conditions where the 
member oi the subdivision is at fault. 

Section 6. No member of the subdivision shall sell or offer to sell 
commodities other than products of this subdivision for the purpose 
of influencing a sale of a product of this subdivision at prices below 
the invoice price plus all incidental costs of such products. If and 
when the products of this subdivision are sold in combination with 
products of other industries, the invoice must clearly show the unit 
price for each article listed. 

Section 7. No member of the subdivision shall offer or give prizes 
or gifts in connection with the sale or exchange of products of this 
subdivision or as an inducement thereto, by any scheme which in- 
volves lottery, misrepresentation or fraud. 

Section 8. No member of the subdivision shall make allowances to 
customers in any form for special sales, or make allowances for 
special swatters, and special or extraordinary sales events, or make 
allowances for advertising. 

Section 9. No member of the subdivision shall use premiums in 
the following ways : 

(a) In any way which will involve commercial bribery in any 
form. 

(b) In a way which involves lottery in any form. The term 
" lottery " shall be construed to include, but without limitation, any 
plan or arrangement whereby the premiums offered differ substan- 



418 

tially in valtio from customer to customer of the same class, except 
as a result of differences in quantities purchased. 

(c) In ways which involve misrepresentation, or fraud or decep- 
tion in any form including, but without limitation, the use of the 
words " free ", " gift ", " gratuity " or language of similar import in 
connection with giving of premiums for the purpose or with the 
effect of misleading or deceiving customers. 

(d) Tlie giving of premiums to any customer when such premiums 
are not offered to all customers of the same class, in the same trade 
area. 

Section 10. No member of the subdivision shall distribute samples 
to jobbers for the use of their salesmen unless charged for at not 
below regular jobbing prices plus transportation charges. 

Section 11. No member of the subdivision shall allow a discount 
for cash greater than 2% in ten daj^s from date of shipment. Orders 
received for shipment during January, February and March may 
be given May 1 dating, provided customer permits shipment at the 
seller's convenience during the period from January 1 to April 1. 
A pre-payment discount on such shipments may be allowed at a rate 
not to exceed 6% per annum. 

Section 12. No member of the subdivision shall make or give 
to any purchaser of fly swatters, any guarantee or protection against 
decline in the market of such products. 

Section 13. No member of the subdivision shall employ as a sales- 
man, broker, agent or distributor any person who is directly or 
indirectly employed by or associated with any trade buj^er, or group 
of buyers, or so-called syndicate of wholesale grocers, or other jobbers 
(any of whom deal in fly swatters), on a salary or any other compen- 
sation basis. 

Section. 14. This Appendix shall become effective ten (10) days 
after its approval by the Administrator. 

Approved Code No. 84 — Appendix No. 1. 
Registry No. 1122-22. 



CONSOLIDATIONS 



I 



I 



I 



I 



Approved Code No. 11 — Consolidation No. 1 
CODE OF FAIR COMPETITION 

FOR THE 

WIRE REINFORCEMENT INDUSTRY 

As Approved on August 13, 1934 



ORDER 



APrROVING THE APPROVED CoDE FOR THE IrON AND StEEL INDUSTRY 

AS THE Code of Fair Competition for the Wire Reinforcement 
Industry 

An application having been made pursuant to Administrative Or- 
der No. X-61, dated July 10, 1934, by the Wire Reinforcement Indus- 
try for codification by consolidation under the approved Code of Fair 
Competition for the Iron and Steel Industry and for the approval of 
said Code as the Code of Fair Competition for the Wire Reinforce- 
ment Industry as hereinafter defined and the annexed report thereon 
having been made and directed to the President, and it appearing to 
me that said application is in full compliance with Title I of the 
National Industrial Recovery Act; 

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; 

(a) Incorporate by reference said annexed report, 

(b) Find that said Code complies in all respects with the pertinent 
provisions and will promote the policy and purpose of said Title 
of said Act, 

(c) Order that said Code be and it hereby is approved as the 
Code of Fair Competition for the Wire Reinforcement Industry 
defined as follows : 

" The manufacture and sale by the manufacturer of Mesh, Fabric, 
or Mats, made from Drawn Wire or Wire Rods, in which the mem- 
bers are attached at their intersections; in which no members are 
spaced less than two (2) inches center to center; and which is used 
for reinforcing concrete pavements, the floors or other structural 
elements of buildings, concrete sewers or pipe, or any construction 
or manufactured product involving the use of Portland Cement, 
•Gypsum, or other plastic material ; but not including " paper back " 

(419) 



420 

fabric, or other fabric when used as a base or reinforcement for 
plaster or stucco." 

This order shall become effective ten (10) days from the date- 
hereof unless prior to that time good cause to the contrary is shown 
to me and I, by my further order, otherwise direct. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Geo. L, Berry, 

Division AdTJiinistrator. 

Washington, D.C, 

August 13, 193Jf. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the approval of the approved Code for 
the Iron and Steel Industry as the Code of Fair Competition for the 
Wire Reinforcement Industry. 

HOURS AND WAGES 

Eight (8) of the ten (10) members composing the Wire Rein- 
forcement Industry are at the present time operating under the 
approved Iron and Steel Industry Code in the manufacture of other 
products. These eight companies produce eighty-five per cent (85%) 
of the tonnage of wire reinforcement in the entire Industry. 

The eight companies producing the eighty-five per cent of the pro- 
duction in tons in this Industry do not operate a separate reinforce- 
ment plant in that wire reinforcement is produced in the same plants 
that produce the basic material of the product, which is Drawn Wire 
and Wire Rods, and merely operate a wire department of their 
individual plants. 

The same employees working under the wage and hour provisions 
in the approved Iron and Steel Industry Code work a small percent- 
age of their time producing wire reinforcement. 

The wage and hour provisions in the Wire Reinforcement Industry 
are to be the same as in the approved Iron and Steel Industry Code. 

ECONOMIC EFFECTS OF THE CODE 

The Wire Reinforcement Industry, like all industries engaged 
in construction endeavors, has suffered during the depression. The 
number of employees in 1928 was seven hundred and fifty (750). 
The number of employees in 1933 was seven hundred (700), repre- 
senting a decrease of six and seven-tenths per cent (6.7%) from the 
1928 level. The Industry is highly mechanized; hence, the number 
of men employed is comparatively small. As production fell off 
fifty and six-tenths per cent (50.6%) and the number of employees 
has only declined six and seven-tenths per cent (6.7%), it is evident 
that the number of man-hours was materially reduced and that work 
was spread among the number of men available for work. 

DEFINITION 

The definition of the AVire Reinforcement Industry is as follows : 

" The manufacture and sale by the manufacturer of Mesh, Fabric, 

or Mats, made from Drawn Wire or Wire Rods, in which the mem- 

(421) 



422 

bers are attached at their intersections; in which no members are 
spaced less than two (2) inches center to center; and which is used 
for reinforcing concrete pavements, the floors or other structural ele- 
ments of buildings, concrete sewers or pipe, or any construction or 
manufactured product involving the use of Portland Cement, Gyp- 
sum, or other plastic material; but not including "paper back" 
fabric, or other fabric when used as a base or reinforcement for 
plaster or stucco." 

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 com- 
merce which tend to diminish the amount thereof and will provide 
for the general welfare by promoting the organization of Industry 
for the purpose of cooperative action among trade groups, by induc- 
ing and maintaining united action of labor and management under 
adequate governmental sanctions and supervision, by eliminating 
unfair competitive practices, by promoting the fullest possible utili- 
zation of the present productive capacity of industries, by avoiding 
undue restrictions of production (except as may be temporarily re- 
quired), by increasing the consumption of industrial and agricultural 
products through increasing purchasing power, b}^ reducing and re- 
lieving unemployment, by improving standards of labor, and by 
otherwise rehabilitating industry. 

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

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

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

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

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

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

Hugh S. Johnson, 

Administrator. 
August 13, 1934. 



CODE OF FAIK COMPETITION FOR THE WIRE 
REINFORCEMENT INDUSTRY 

See approved code for the Iron and Steel Industry, which is the 
approved code for the Wire Reinforcement Industry. 

Approved Code No. 11 — Consolidation No. 1. 
Registry No. 1151-11. 

(423) 



Approved Code No. 83 — Consolidation No. 1 
CODE OF FAIR COMPETITION 

FOR THE 

CLEANSER MANUFACTURING INDUSTRY 

As Approved on September 1, 1934 



OKDER 



Approving the AppRO^^D Code for the Soap and Glycerine Mantj- 

FACTURING INDUSTRY AS THE CoDE OF FaIR COMPETITION FOR THE 

Cleanser Manufacturing Subdivision of Said Industry 

An application having been made, pursuant to Administrative 
Order No. X-61, dated July 10, 1934, by the Cleanser Manufacturing 
Subdivision defined as " manufacture of household cleanser and bulk 
cleanser containing soap and insoluble mineral or minerals as essen- 
tial ingredients " of the Soap and Glycerine Manufacturing Industry 
for consolidation under the approved Code of Fair Competition for 
said Industry and for the approval of said Code as the Code of Fair 
Competition for said Subdivision ; and it appearing to me that said 
application is in full compliance with Title I of the National Indus- 
trial Recovery Act and that said annexed report has been made and 
Ciirpoton ^o i'np r^i'PsiriPTit^ 

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 : 

(a) Incorporate by reference said annexed report, 

(b) 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, 

(c) Order that said Subdivision be and it hereby is consolidated 
■with said Industry, and 

(d) Order that said Code be and it hereby is approved as the Code 
•of Fair Competition for the Cleanser Manufacturing Subdivision of 

(425) 



426 

the Soap and Glycerine Manufacturing Industry, as said subdivision 
is defined in said annexed report. 

This order shall become effective 10 days from the date hereof 
unless prior to that time good cause to the contrary is shown to ine 
and I, by my further order, otherwise direct. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Joseph F. Battley, 

Acting Division Administrator. 

Washington, D.C, 

September 7, 1931^. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is to report on the application of the Cleanser Manufac- 
turing Industry, which includes the manufacture of cleansers made 
with soap and insoluble mineral or minerals as essential ingredients, 
for consolidation and complete coverage as a Product Division under 
the Code of Fair Competition for the Soap and Glycerine Manu- 
facturing Industry, approved by you on November 2, 1933 ; the hear- 
ing of this group having been duly conducted at the Public Hearing 
on the Code of Fair Competition for the Soap and Glycerine Man- 
ufacturing Industry, held in Washington, D.C., October 5, 1933. 

GENERAL STATEMENT 

The petition of the Cleanser Manufacturing Industry was pre- 
sented at the Public Hearing on the Soap and Glycerine Code held 
in Washington, D.C, October 5, 1933. Action has been delayed pend- 
ing the preparation and submission of a supplemental Code of Fair 
Practices. This supplement has never been filed, and the Industry 
does not contemplate at this time the filing of such a supplemental 
Code of Fair Practices. 

The petitioners, who represent approximately seventy-five per 
cent (75%) of the manufacturers of cleansers made with soap and 
insoluble mineral or minerals as essential ingredients, and, there- 
fore, being truly representative of this product division of the Soap 
and Glycerine Manufacturing Industry, have elected to avail them- 
selves of the option provided for in Article VI, Sections C and D 
of the basic Code for the Soap and Glycerine Manufacturing Indus- 
try, approved by you on the second day of November, 1933, and 
request that they be permitted to operate as a Product Division under 
the Code of Fair Competition for the Soap and Glycerine Manu- 
facturing Industry. 

FINDINGS 

The Deputy Administrator in his final report to me on said appli- 
cation for consolidation and complete coverage of the Cleanser 
Manufacturing Industry as a Product Division under the Code of 
Fair Competition for the Soap and Glycerine Manufacturing In- 
dustry having found as herein set forth and on the basis of all the 
proceedings in the matter : 

I find that: 

(a) Said consolidation and complete coverage of the Cleanser 
Manufacturing Industry as a Product Division under the Code of 

89406—34 18 (427) 



428 

Fair Comi^etition for the Soap and Glycerine Manufacturing In- 
dustry are well designed to promote the policies and purposes of 
Title I of the National Industrial Recovery Act, including, removal 
of obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof and will provide for the 
general welfare by promoting the organization of Industry for the 
purpose of cooperative action among the trade groups, by inducing 
and maintaining united action of labor and management under ade- 
quate governmental sanctions and supervision, by eliminating un- 
fair competitive practices, by promoting tiie fullest possible utiliza- 
tion of the present productive capacity of Industries, by avoiding 
undue restriction of production (except as may be temporarily re- 
quired), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating Industry. 

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

(c) Said consolidation and complete coverage of the Cleanser 
Manufacturing Industry as a Product Division under the Code of 
Fair Competition for the Soap and Glycerine Manufacturing In- 
dustry 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 Sec- 
tion 10 thereof ; and that the applicant group is truly representative 
of the aforesaid Industry; and that the Association of which they 
are members imjDoses no inequitable restrictions on admission to 
membership therein. 

(d) Said consolidation and complete coverage of the Cleanser 
Manufacturing Industry as a Product Division under the Code of 
Fair Competition for the Soap and Glycerine Manufacturing In- 
dustry are not designed to and will not permit monopolies. 

(e) Said consolidation and complete coverage of the Cleanser 
Manufacturing Industry as a Product Division under the Code of 
Fair Competition for the Soap and Glycerine Manufacturing In- 
dustry 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 
consolidation and complete coverage. 

For these reasons, therefore, this consolidation and complete 
coverage has been approved. 
Respectfully, 

Hugh S. Johnson, 

Ad^jiinistrator. 
September 1, 1934. 



CODE OF FAIR COMPETITION FOR THE CLEANSER 
MANUFACTURING INDUSTRY 

See approved code for the Soap and Glycerin Manufacturing 
Industry, which is the approved code for the Cleanser Manufacturing 
Industry. 

Approved Code No. 83 — Consolidation No. 1. 
Registry No. 603-04. 

(429) 



\ 



Approved Code No. 82 — Consolidation No. 1 
CODE OF FAIR COMPETITION 

FOR THE 

MANGANESE STEEL CASTING INDUSTRY 
As Approved on September 14, 1934 



OEDEK 



Approving the Approved Code for the Steel Casting Industry as 
THE Code of Fair Competition for the Manganese Steel Casting 
Subdivision of Said Industry, and Amending the Definition of 
THE Term " Industry " in Said Code 

An application having been made pursuant to Administrative 
Order No. X-61, dated July 10, 1934, by the Manganese Steel Cast- 
ing Subdivision of the Steel Casting Industry for codification by 
consolidation under the approved Code of Fair Competition for said 
Industry, for the approval of said Code as the Code of Fair Competi- 
tion for said Subdivision as defined in the annexed report on said 
Code, containing findings with respect thereto and for the amend- 
ment of the definition of the term " Industry " in said Code so that 
said application is in full compliance with Title I of the National 
Industrial Recovery Act and that said annexed report 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 

(a) incorporate by reference said annexed report, 

(b) 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, 

(c) order that said Subdivision be and it hereby is consoli- 
dated with said Industry, and 

(d) order that said Code be and it hereby is approved as the 
Code of Fair Competition for the Manganese Steel Casting 
Subdivision of the Steel Casting Industry, as said Subdivision 
is defined in said annexed report, 

(e) order that the definition of the term " Industry " in said 
Code be and it is hereby amended as follows : 

(431) 



432 

Amend Article II, Section 3 by deleting in the last sentence 
the word " two " and substituting therefor the word " three ", 
and after the word " specialties " delete the period and substitute 
therefor a comma and add the following : " and Manganese 
Steel Casting ", 

Further, amend Article II by adding the following new Sec- 
tion to be known as Section H: 

Section 14. The term " Manganese Steel Casting " means that 
group of steel castings commonly known in the trade under that 
name and having a manganese content of not less than 10%. 

PROVIDED, HOWEVER, that the continued participation of 
the Manganese Steel Founders' Society in the Code Authority after 
thirty days from the effective date of this Order shall be contingent 
upon its amending its Constitution and By-Laws to the satisfaction 
of the Administrator. 

This Order shall become effective 10 days from the date hereof 
unless prior to that time good cause to the contrary is shown to me 
and I, by my further order, otherwise direct. 

Hugh S. Johnson, 
Adniinistraior for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Division Adnmnistrator. 

Washington, D.C, 

Septemher i^, IQSJi.. 



i 



I 



REPOET TO THE PRESIDENT 

The President, 

The White House. 

Sie: This is a report on the Order approving the Code of Fair 
Competition for the Steel Casting Industry as the Code of Fair Com- 
petition for the Manganese Steel Casting Subdivision of said Indus- 
try, and amending the definition of the term " Industry " in the 
Steel Casting Code. 

A Notice of Opportunity to be Heard has been published to all 
interested parties, and unless due cause to the contrary is shown 
and I issue subsequent order to that effect, this Order shall take effect 
ten days after date hereof. 

The term " manganese steel castings " means that group of steel 
castings commonly known in the trade under that name and having a 
manganese content of not less than ten percent. 

It is my opinion that these are kindred industries and the Man- 
ganese Steel Casting Group should properly be a subdivision under 
the approved Code of Fair Competition for the Steel Casting 
Industry. 

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

I find that : 

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

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

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

(433) 



434 

and that said group imposes no inequitable restrictions on admis- 
sion 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 
€ode. 

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

Hugh S. Johnson, 

A dministrator. 
September 14, 1934. 



I 



CODE OF FAIR COMPETITION FOR THE MANGANESE 
STEEL CASTING INDUSTRY 

See aproved code for the Steel Casting Industry, which is the 
approved code for the Manganese Steel Casting Industry. 

Approved Code No. 82 — Consolidation No. 1. 
Registry No. 1118-28. 

(435) 



SUPPLEMENTS 



I 



Approved Code No. 84 — Supplement No. 48 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

PERFORATING MANUFACTURING INDUSTRY 

As Approved on August 31, 1934 



ORDER 



Approving Supplementary Code of Fair Competition for the 
Perforating Manufacturing Industry 

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 
Recover}^ 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 Perforating 
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 

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 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; provided, however, that the provisions of Rule 
12, Article VIII 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, 

August 31, 193k. 



(437) 



KEPORT TO THE PRESIDENT 

The President, 

The 'White House. 
Sir : This is a report on the Supplementary Code of Fair Competi- 
tion for the Perforating Manufacturing Industry, a division of the 
Fabricated Metal Products Manufacturing and Metal Finishing and 
Metal Coating Industry, the hearing having been conducted thereon 
in Washington, D.C., April 9, 1934, in accordance with the provisions 
of Title I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Perforating Manufacturing Industry, being truly representa- 
tive of this division of the Fabricated Metal Products Manufactur- 
ing and Metal Finishing and Metal Coating Industry, has elected to 
avail itself of the option of submitting a Supplementary Code of 
Fair Competition, as provided for in Section 1 of Article VI of the 
Basic Code, for the Fabricated Metal Products Manufacturing and 
Metal Finishing and Metal Coating Industry, approved by you on 
the second day of November, 1933. 

RESUME or THE CODE 

Article I states the purpose of the Supplementary Code. 

Article II accurately defines specific terms employed in the 
Supplementary 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 five (5) members to be elected by the members of the Industry at 
a meeting called by the Temporary Supplementary Code Authority, 
and gives the Administrator the authority to appoint one additional 
member without vote and provides machinery for obtaining 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 against selling below allowable cost as de- 
termined by a uniform method of costing. 

Article VII provides for methods of setting up and revising price 
lists. 

Article VIII sets forth the unfair trade practices of this Supple- 
mentary Code which has been especially designed to offset unfair 
competition in this division of the Industry. 

Article IX provides against monopolies and monopolistic practices. 

Article X contains the mandatory provisions contained in Sec- 

(438) 



439 

tion 10 (b) and also provides for the submission of proposed amend- 
ments to the Supplementary Code. 

Article XI recognizes that price increases be limited to actual 
additional increases in seller's costs. 

Article XII states the effective date of this Supplementary 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 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 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 
fallest 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 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 T, and Subsection (b) of Section 10 thereof and that the 
applicant association is an industrial association truly representative 
of the aforesaid Industry; and that said association imposes no 
inequitable restrictions on admission to membership therein. 

(d) The Supplementary Code is not designed to and will not 
permit 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 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 
Supplementary Code. 

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

Respectfully, 



August 31, 1934. 



Hugh S. Johnson, 

A dministrator. 



SUPPLEMENTAKY CODE OF FAIR COMPETITION FOR 
THE PERFORATING 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, the following provisions are established as a Supple- 
mentary Code of Fair Competition for the Perforating Manufac- 
turing Industry, pursuant to Article VI of the Basic Code of Fair 
Competition for the Fabricated Metal Products Manufacturing and 
Metal Finishing and Metal Coating Industry, 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 " Industry " as used herein means the manu- 
facture for sale of perforated sheet, strip and/or plate materials. 
This does not include products made from perforated materials as 
defined in the Code of Fair Competition for the Warm Air Register 
Industry as approved on June 28, 1934. 

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, associa- 
tion, corporation or other form of enterprise engaged in the Indus- 
try, either as an employer or on his own 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 " Supplementary Code Authority " as used 
herein means the agency whicli is to administer this Supplementary 
Code as hereinafter provided. 

Section 6. The term "Association " as used herein is defined to 
mean the Perforated Metal Manufacturers Association or its suc- 
cessor. 

Section Y. The term " Federation " as used herein is defined to 
mean the Fabricated Metal Products Federation or its successor. 

Section 8. The term " Employee " as used herein includes any and 
all persons engaged in the Industry, however compensated. 

(440) 



441 

Section 9. The term " Employer " as used herein includes anyone 
by whom such employee is compensated or employed. 

Article III — Employment Provisions 

This Industry is a division of the Fabricated Metal Products Man- 
ufacturing 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 
subsection (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 and Administration 

Section 1. During the period not to exceed sixty (60) days fol- 
lowing the eilective date of this Supplementary Code, the Supple- 
mentar}^ Code Committee of the Industry shall constitute a tempo- 
rary Supplementary Code x\.uthority until the Supplementary Code 
Authority is elected. There shall be constituted within the sixty- 
day period a Supplementary Code Authority consisting of five mem- 
bers to be elected by the members of the Industry, at a meeting 
.called by the Temporary Supplementary Code Authority. The 
members of the Supplementary Code Authority first elected shall 
serve until the following annual meeting of the Association, and 
thereafter members of the Supplementary Code Authority shall be 
elected by the members of the Industry at a meeting of the members 
of the Industry to be held at the time and place of each annual meet- 
ing of the Association, to serve until the following annual meeting. 
F'ifteen (15) days' advance notice of all meetings to be held here- 
under shall be sent by Registered Mail to all members of the Indus- 
try whose names may be ascertained by diligent search, and who 
may vote either in person or by proxy. The members of the Supple- 
mentary Code Authority shall be elected in the following manner : 

(a) One member who shall be a member of the Association by a 
majority vote of all members of the Industry present in person or 
by proxy, each member to have one vote. 

(b) One member who shall be a member of the Industry and a 
non-member of the Association by a majority vote of all the members 
of the Industry who are not members of the Association, present in 
;person or by proxy, each member to have one vote. 

(c) Three (3) members who shall be members of the Association, 
by a majority vote of all votes cast by all members of the Associa- 
tion, present in person or by proxy, weighted on the basis of 

1. One (1) vote for each member of the Association, and 

2. Two (2) additional votes for the first ten (10) or fraction 
thereof of shop employees of each member of the Association, and 
one (1) additional vote for each ten (10) or fraction thereof of all 
: additional employees, averaged over the previous calendar year as 
rej^orted to the Supplementary Code Authority, provided, however, 
that no one member of the Association may cast more than 25% of 
the total number of votes cast. 

89406—34 19 



442 

If the members of the Industry who are non-members of the Asso- 
ciation fail to elect a member of the Supplementary Code Authority 
as provided in subsection (b) of this Section, then a member of the 
Industry who is a non-member of the Association shall be elected by 
a majority vote of all members of the Industry then present in 
person or by proxy, each member to have one vote. 

A vacancy in the membership of the Supplementary Code Au- 
thority shall be filled by majority vote of the remaining members of 
the Supplementary Code Authority, provided, however, that the 
member of the Supplementary Code Authority who is chosen to fill 
such vacancy shall be elected from the class of membership in which 
the vacancy has occurred. In addition thereto the Administratoi* 
may appoint one member who shall serve without vote on the Sup- 
plementary Code Authority and without expense to the Industry. 
The member so appointed by the Administrator, together with the 
Administrator, shall receive notice of and may sit at all meetings 
of the Supplementary Code Authority. 

Section 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 admission to 
membership, and (2) submit to the Administrator true copies of its 
Articles of Association, By-Laws, regulations, and any amendments 
when made thereto, together with such other information as to mem- 
bership, 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 with the provisions of the Act, the Admin- 
istrator may prescribe such Hearings as he may deem proper; and 
thereafter, if he shall find that the Supplementary 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 Supplementary Code Authority. 

Section 4. It being found necessary in order to support the 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 Supplementary 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 Supplementary Code. 

(b) To submit to the Administiator for his approval, subject to 
such notice and o])portunity to be heard as he may deem necessaiy 
(1) an itemized Budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the fmids necessary 
to support such budget sliall be contributed by members of the 
Industry. 

(c) After such budget and basis of contribution have been aj)- 
])r<)ved by the Administrator, to determine and obtain equitable con- 
tribution as above set f(U-th 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- 
ti'ibution to the expenses of the maintenance of the Supplementary 



443 

Code Authority, determined as hereinabove provided, ami subject to 
rules and regulations pertaining thereto issued by the Administrator. 
Only members of the Industry complying with the Supplementary 
Code and contributing to the expenses of its administration as here- 
inabove provided, unless duly exempted from making such contri- 
butions, 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 Supplementar}'^ 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 item for expenditures in excess of prior budget estimates 
except those which the Administrator shall have so approved. 

Section 5. 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 wilful mal- 
feasance or nonfeasance. 

Section 6. 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 the terms of said Basic Code. 

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

(a) To insure the execution of the provisions of this Supple- 
mentary 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 Supple- 
mentary Code. In addition to information required to be submitted 
to the SupiDlementary 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 
existing obligations to furnish reports to any Government agency. 
No individual report shall be disclosed to any other member of the 
Industry or any other party except to such other Governmental 
agencies as may be directed by the Administrator. 

(d) To use such Trade Associations and other Agencies as it 
deems proper for the carrying out of any of its activities provided for 



444 

herein, provided that nothing herein shall relieve the Supplementary 
Code Authority of its duties or resi)onsihilitios under this Su])ple- 
mentary Code and that such Trade Associations and Agencies shall 
at all times be subject to and comply Avith the provisions hereof. 

(e) To make reconunendations to the Administrator for the co- 
ordination of the administration of this 8ui)])lementary Code with 
such other Codes, if any, as may be related to or affect the members 
of the Industry. 

(f ) To appoint a Trade Practice Committee which shall meet with 
the Trade Practice Committees appointed under such other codes as 
may be related to the Industry for the purpose of formulating fair 
trade practices to govern the relationships between employers under 
this Suj)))lementary Code and under such other codes to the end that 
such fair trade practices may be proj^osed to the Administrator 
as amendments to this Sujjplementary Code and such other codes. 

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

Section 8. If the Administrator believes that any action of the 
Supplementary Code Authority or any agency thereof is unfair or 
unjust or contrary to the public interest, the Administrator may 
require that such action be suspended to afford an opportunitj'' for 
investigation of the merits of such action. Further action by such 
Su])plementary Code Authority or Agency regarding the matter 
complained of may be taken if approved by the Administrator but 
shall not be taken if disapproved by the Administrator within 
thirty days of notice to him of intention to proceed with such 
action. 

Section 9. To the extent permitted by the Act and subject to such 
rules and regulations as the Administrator may prescribe, the Sup- 
plementary Code Authority shall have power to investigate any 
complaint filed with it regarding an alleged violation of the Supple- 
mentary Code. 

Article V — Cost Finding 

The Su])plementary Code Authority shall cause to be formulated 
methods of cost finding and accounting capable of use by all mem- 
bers of the Industry, and shall submit such methods to the Ad- 
ministrator 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. Noth- 
ing herein contained shall be construed to permit the Supi^dementary 
Code Authority, any agent thereof, or any member of the Industry 
to suggest uniform additions, percentages or differentials or()thcr 
uniform items of cost which are designed to bring about arbitrary 
uniformity of costs or prices. 



445 

Article VI — 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- 
plain to the Supplementary Code Authority that any filed price con- 
stitutes unfair competition as destructive price cutting, imperiling 
small enterprise or tending toward monopoly or the impairment of 
code wages and working conditions. The Supplementary Code Au- 
thority shall within five (5) daj^s afford an opportunity to the mem- 
ber filing the price to answer such complaint and shall within four- 
teen (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 N.R.A. which 
shall render a report and recommendation thereon to the Admin- 
istrator. 

(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 considera- 
tion should be given to costs in the determination of pricing policies. 

(c) When an emergency exists as to any given product, sale 
below the stated minimum price of such product, in violation of 
Section 2 hereof, is forbidden. 

Section 2. Emergency Provision.'^. — (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 speci- 
fied 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 Supplementary Code Authority may 
cause an impartial agency to investigate costs and to recommend to 
the Administrator a determination of the stated minimum price of 
the product affected by the emergency and thereupon the Admin- 
istrator 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 Industrial 
Recovery Act, he shall publish such price. Thereafter, during such 
stated period, no member of the Industry shall sell such specified 
])roducts 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 Supplementary Code Authority may recommend re- 
view of reconsideration or the Administrator may cause any deter- 
minations hereunder to be reviewed or reconsidered and appropriate 
action taken. 

Article VII — Open Price 

Section 1. Within sixty (60) days after the effective date of this 
Supplementary Code, the Supplementary Code Authority shall 



446 

designate what products of the Industry are to be sold on a price 
hst basis. Each member of the Industry shall file with a confi- 
dential and disinterested agent of the Supplementary Code Author- 
ity, or, if none, then with such an agent designated by the Admin- 
istrator, identified lists of all of his prices, discounts, rebates, 
allowances, and all other terms or conditions of sale, hereinafter 
m this Article referred to as " price terms," which lists shall com- 
pletely and accurately conform to and represent the individual pric- 
ing practices of said member. Such lists shall contain the price 
terms for all such standard products of the Industry as are sold or 
offered for sale by said member and for such non-standard products 
of said member as shall be designated by the Supplementary Code 
Authority. Said price terms shall in the first instance be filed within 
eighty (80) days after the date of approval of this provision. Price 
terms and revised price terms shall become effective immediately 
upon receipt thereof by said agent. Immediately upon receipt 
thereof, said agent shall by telegraph or other equally prompt means 
notify said member of the time of such receipt. Such lists and re- 
visions, together with the effective time thereof, shall upon receipt 
be immediately and simultaneously distributed to all members of the 
Industry and to all of their customers who have applied therefor 
and have offered to defray the cost actually incurred by the Sup- 
plementary Code Authority in the preparation and distribution 
thereof and be available for inspection by any of their customers 
at the office of such agent. Said lists or revisions or any part thereof 
shall not be made available to any person until released to all 
members of the Industry and their customers, as aforesaid; pro- 
vided, that prices filed in the first instance shall not be released 
until the expiration of the aforesaid eighty (80) day period after 
the approval of this Supplementary Code. The Supplementary 
Code Authority shall maintain a permanent file of all price terms 
filed as herein provided, and shall not destroy any part of sucli 
records exce])t upon written consent of the Administrator. Upon 
request the Supplementary Code Authority shall furnish to the 
Administrator or any duly designated agent of the Administrator 
copies of any such lists or revisions of price terms. The Supple- 
mentary Code Authority may, from time to time, designate addi- 
tional and other priKlucts of the Industry to be sold on a price list 
basis and, beginning ten (10) days after the members of the Industry 
shall have been notified of such designation and thereafter, the 
provisions of this Article shall apply to the sale of such products. 

Skction 2. When any member of the Industry has filed any 
revision, such member shall not file a higher price wiiliin forty-eiglit 
(48) hours. 

Section 3. Xo member of the Industry shall sell or offer to sell 
any products/services of tlie Industry, for which price terms have 
been filed pursuant to the provisions of this Article, except in 
accordance witli such j)rice terms. 

Section 4. Xo member of the Industry shall enter into any agree- 
ment, understanding, combination or conspiracy to fix or maintain 
price terms, nor cause or attempt to cause any member of the Indus- 
try to change his price terms by the use of intimidation, coercion, 
or any other influence inconsistent with the maintenance of the free 
and oju^n market which it is the purpose of this Article to create. 



447 

Article VIII — Unfair Trade Practices 

In addition to the Unfair Trade Practices covered by Article V 
(excepting Section A) of the Basic Code as though herein repeated 
and set forth at length, and for all purposes of this Supplementary 
Code, the following described acts shall constitute unfair practices. 
Any member of the Industry who shall directly or indirectly througji 
any officer, employee, agent, or representative use or employ any 
of such unfair practices shall be guilty of a violation of this Supple- 
mentary Code, 

Rule 1. Threats of Litigation. — No member of the Industry shall 
publish or circulate unjustified or unwarranted threats of legal 
proceedings which tend to have the effect of harassing competitors 
or intimidating their customers. 

Rule 2. Extension of Credit Terms. — No member of the Industry 
shall give extended time beyond the cash discount net payment pe- 
riod established in filed price lists, or expressed in specific quota- 
tions. This shall not prevent any member of the Industry from 
allowing extended time to any purchaser at the rate of 6% per 
annum. 

Rule 3. Selling 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 re- 
quire the practice. 

Rule 4. Inducing Breach of Existing Contracts. — No member of 
the Industry shall wilfully induce or attempt to induce the breach 
of existing contracts between competitors and their customers by 
any false or deceptive means, or interfere with or obstruct the per- 
formance of any such contractual duties or services by any such 
means, with the purpose and effect of hampering, injuring or em- 
barrassing competitors in their business. 

Rule 5. Coercion. — No member of the Industry shall require that 
the purchase or lease of any goods be a prerequisite to the purchase 
or lease of any other goods. 

Rule 6. Giving of Prizes^ Premiums or Gifts. — No member of the 
Industry shall offer or give prizes, premiums or gifts in connection 
with the sale of products, or as an inducement thereto, by any 
scheme which involves lottery, misrej)resentation or fraud. 

Rule 7. Espionage of Competitors. — No member of the Industry 
shall secure confidential information concerning the business of a 
competitor by a false or misleading statement or misrepresentation, 
by a false impersonation of one in authority, by bribery, or by any 
other unfair method. 

Rule 8. Guarantees against Price Changes. — No member of the 
Industry shall make or give, or offer to make or give guarantees 
of protection in any form against changes in price beyond a period 
of 30 days, except for such products and under such circumstances 
as are defined by the Supplementary Code Authority, subject to the 
approval of the Administrator. 

Rule 9. Commissions. — No member of the Industry shall permit 
the splitting of commissions or other compensation received by his 
■employee or agent, with the buyer, for the purpose or with the 
effect of influencing: a sale. 



448 

Rule 10. Coniblnation of Sales. — No member of the Industry shall,, 
for the purpose of influencing a sale, sell or offer to sell any com- 
modit}^ other than a product of this Industry in combination with 
any product of this Industry at a price which will yield to the seller 
less than the total cost to him. 

No member of the Industry shall, for the purpose of influencing 
a sale, sell or offer to sell connnodities other than products of this 
Industry without separately stating the price of such commodities- 
unless such commodities are incorporated as an integral part of a 
complete unit. 

Rule 11. Contracts. — No member of the Industry shall make any 
sale or contract of sale of any product, under any description which 
does not fully and accurately describe such product in terms cus- 
tomarily used in the Industry. 

Rule 12. Service. — No member of the Industry shall for the pur- 
pose of influencing a sale, render to any prospective or actual pur- 
chaser of any product any unusual service, except when fair charge 
for such service shall be made.^ 

Rule 13. Secret Rebates. — No member of the Industry shall 
secretly offer or make any payment or allowance of a rebate, refund,, 
commission, credit, unearned discount or excess allowance, whether 
in the form of money or otherwise, nor shall a member of the In- 
dustry secretly offer or extend to any customer any special service 
or privilege not extended to all customers of the same class, for the 
purpose of influencing a sale. 

Rule 14. Individual Lahor Cost. — No member of the Industry 
who actually performs duties usually performed by an employee en- 
gaged in the manufacture and processing of products of the Indus- 
try shall fail to charge for such individual labor, and. shall include 
in his cost an amount calculated on a basis of at least the minimum 
wage provided for in Article III of the Basic Code. 

Article IX — Monopolies 

No provision of this Supplementary Code shall be so a;pplied as to- 
permit monopolies or monopolistic practices, or to eliminate, oppress 
or discriminate against small enterprises. 

Article X — Modifications 

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

Section 2. This Supplementary Code, except as to provisions re- 
quired by the Act, may be modified on the basis of experience or 
changes in circumstances, such modifications to be based upon appli- 
cation by the Supplementary Code Authority to the Administrator 
and such Notice of Hearing as he shall specify and to become effec- 
tive and be a part of this Supplementary Code on approval by the- 
President. 



1 St-e panigrupb 2 of ordor approving tlils Code. 



449 

Artjeole XI — Price Increases 

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

Article XII — EF^ECTI^^E Date 

This Supplementary Code shall become effective at 12 : 01 o'clock 
A. M. on the tenth day after it is approved by the President. 

Approved Code No. 84 — ^^Supplement No. 48. 
Registry No. 1122-21. 



I 



Approved Code No. 84 — Supplement No. 49 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

SOCKET SCREW PRODUCTS MANUFACTURING 

INDUSTRY 

As Approved on September 1, 1934 



ORDER 



Approving Supplementary Code of Fair Competition for the 
Socket Screw Products Manufacturing Industry 

a division of the fabricated metal products manufacturing and 
metal finishing and metal coating industry 

An application halving 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 
Fabricated 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 Socket Screw 
Products 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 di- 
rected 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 Supplementary Code com- 
plies 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, on condition that the Socket Screw Products Bu- 
reau amend its Articles of Organization to the satisfaction of the 
Administration within thirty (30) days after the effective date of 
this Code. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Barton W. Murray, 

Division Administrator, 

Washington, D.C, 

September i, 193 If. 

(451) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Supplementary Code of Fair Com- 
petition for the Socket Screw Products Industry, a division of the 
Fabricated Metal Products Manufacturing and Metal Finishing 
and JMetal Coating Industry, the hearing having been conducted 
thereon in Washington, D.C., January 19, 1934, in accordance with 
the provisions of Title I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Socket Screw Products 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 Supplementary Code of Fair 
Competition, as provided for in Section 1 of Article VI of the Basic 
Code, for the Fabricated Metal Products Manufacturing 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 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 con- 
sisting of five (5) members to be elected at a meeting called by the 
Temporary Supplementary Code Authority, and gives the Adminis- 
trator the authority to appoint one additional member without 
vote and ])rovides machinery for obtaining statistics and the adminis- 
tration of tlic Suj)plementary Code. 

Article V sets foi'th the open price provisions. 

Article VI sets forth the standards of fair competition with ref- 
erence to pricing pi-actices. 

Article VII sets forth the unfair trade practices of this Supple- 
mentary Co(h> which have been especially designed to offset unfair 
comi)etition in this division of the Industry. 

Article VIII provides against monopolies and monopolistic prac- 
tices. 

(452) 



453 

Article IX contains the mandatory provisions contained in Sec- 
tion 10 (b) of the Act and also provides for the submission of 
proposed amendments to the Supplementary Code. 

Article X recognizes that price increases be limited to actual 
additional increases in the seller's costs. 

Ai'ticle XI states the effective date of this Supplemental^ Code. 

FINDINGS 

The Acting 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 organi- 
zation 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, b}^ 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 
ma}^ be temporarily required), by increasing the consumption of in- 
dustrial 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 Supplementar}^ 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 bureau is an industrial association truly representative of 
the aforesaid Industry ; and that said association imposes no inequi- 
table restrictions on admission to membership therein. 

(d) The Supplementary Code is not designed to and will not 
permit 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 
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 
Supplementary Code. 

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

Respectfully, 



September 1, 1934. 



Hugh S. Johnson, 

Administrator. 



SUPrLEiMENTAKY CODE OF FAIR COMPETITION FOR 
THE SOCKET SCREW PRODUCTS MANUFACTURING 
INDUSTRY 

A Division of the Fabricated Metal Products Manufacturing and 
Metal Finishing and Metal Coatin(j 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 Socket Screw Pi'oducts 
Manufacturing Industry. Pursuant to Article VI of the Basic Code 
of Fair Competition for the Fabricated Metal Products Manufactur- 
ing and Metal Finishing and Metal Coating Industry, approved 
by the President of the United States on the 2nd day of November, 
1038, the provisions of this supplementary code shall be the standard 
of fair competition for such Industry and shall be binding upon 
every member thereof. 

Article II — Definitions 

Section 1. The terms " President," "Act" and "Administrator," as 
used herein, shall mean respectively, the President of the United 
States, Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery. 

Section 2. The term " Industry " and/or " Socket Screw Products 
Industry " means and includes the business of manufacturing for 
sale Socket Screw Products. 

Section 3. The term " Socket Screw Products " is defined as Screw 
Products of a type well known to the trade, each item of which has 
a socket for the reception of a tightening instrument or wrench made 
to fit said socket; and also including the tightening instrument, or 
wrench, itself. This term is meant to include the classifications gen- 
erally known to the trade as Hollow or Safety Set Screws and Socket 
Head Cap Screws and Wrenches therefor as now jnoposed by the 
American Standards Association Bulletin B18i-, and also to include 
Hollow Pipe Plugs and Socketed Stripper Screws which are some- 
times termed Strii)per Bolts or Socket Head Stripper Bolts or 
Stripper Plate Screws, and also modifications of any of the above 
types for s])ecial purjwses. 

Section 4. The term " Member of the Industry " as used herein 
includes, but without limitation, any individual, partnership, associa- 
tion, corporation or other form of enterprise engaged in the Indus- 
try either as an employer or on his or its own behalf. 

Si>:cTioN 5. The term " product " means and includes Socket Screw 
Products, as the term is defined herein. 

(454) 



455 

Section 6. The term " employee " as used herein includes anyone 
engaged in the Industry in any capacity receiving compensation 
for his services, ii'respective of the nature or method of payment of 
such compensation. 

Section 7. The term " employer " as used herein includes anyone 
by whom any such employee is compensated or employed. 

Section 8. 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 2nd day of November, 
1933. 

Section 9. The term " Bureau " means Socket Screw Products 
Bureau, or its successor. 

Section 10. The term " Supplementary Code Authority ", as used 
herein, is defined to mean the agency which is to administer this 
Supplementary Code as hereinafter provided. 

Section 11. The term " Executive Committee " means Executive 
Committee of the Socket Screw Products Bureau. 

Section 12. The term " Impartial Agency " means such impartial 
and confidential agency as the Supplementary Code Authority may 
designate. 

Article III — Employment Provisions 

This Industry is a division of the Fabricated Metal Products Man- 
ufacturing and Metal Finishing and Metal Coating Industry and 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 Subsections (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 fol- 
lowing the effective date, the Executive Committee shall constitute 
a Temporary Supplementary Code Authority who shall have all the 
powers and duties of the Supplementary Code Authority herein set 
forth until the Supplementary Code Authority is elected. There 
shall be constituted within the sixty (60) day period a Supplementary 
•Code Authority consisting of five (5) members to be elected by the 
members of the Industry, as hereinafter provided, at a meeting 
called by the Temporary Supplementary Code Authority, upon 
twenty (20) days' notice sent by registered mail to all members of 
the Industry whose names can be ascertained after diligent search, 
who may vote either in person, by proxy or by letter ballot. The 
members of the Supplementary Code Authority first elected shall 
serve until the following annual meeting of the Bureau and until 
their successors are elected, and thereafter, members of the Sup- 
plementary Code Authority shall be elected at each annual meeting 

1 See paragraph 2 of order approving this Code. 



456 

of the Industry to be held at the time and j)hice of the annual meet- 
ing of the Bureau, to serve until their successors are elected. Notice- 
of each election sliall be sent in the manner above provided. The- 
membership of the Supplementary Code Authority shall be made up* 
as follows : 

(a) Four (4) members who shall be members of the Industry 
elected by a majority vote of the members of the Bureau present 
in person or represented by proxy or by letter ballot, each member 
of the Bureau to have one vote ; 

(b) One (1) member of the Industry who is not a member of the- 
Bureau elected by a majority of all votes cast by the members of 
the Industry who are non-members of the Bureau, present in persoa 
or represented by proxy or by letter ballot, each such member of 
the Industry to have one vote; 

(c) A vacancy in the membership of the Supplementary Code- 
Authority shall be filled by majority vote of the remaining members 
of the Supplementary Code Authority providing such vacancy is 
filled by a member of the Industry drawn from the same group as 
was represented by the vacating member. 

(d) In addition to the above, the Administrator may appoint 
one (1) representative without vote and without expense to the- 
Industry, to serve with said Supplementary Code Authority in the 
Administration of this Supplementary Code. Said representative- 
shall be given proper and reasonable notice of all meetings of the 
Supplementary Code Authority. 

Section 2. Any Association/Institute and/or Bureau directly or 
indirectly participating in the selection or activities oi the Supple- 
mentary Code Authority shall (1) impose no inequitable restric- 
tions on membership, and (2) submit to the Administrator true 
copies of its Articles of Association, By-Laws, Regulations and any 
amendments when made thereto, together with such other informa- 
tion as to membership, organization, and activities as the Adminis- 
trator may deem necessary to effectuate the purposes of the Act. 

Section 3. In order that the 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 Administrator 
may prescribe such Hearings as he may deem proper; and, there- 
after, if he shall find that the Supplementary Code Authority is not 
truly representative or does not in other respects comply with the' 
provisions of the Act, may remove any member thereof and may 
require an appropriate modification or modifications in the method', 
of selection of members of the Supplementary Code Authority. 

Section 4. The Supplementary Code Authority shall obtain from- 
members of the Industry such information and reports as are re" 
quired for the administration of the Supplementary Code. In addi- 
tion to information re(iuired to be submitted to the Supplementary 
Code Authority, members of the industry subject to this bu})plemen- 
tary Code shall furnish such statistical information as the Adminis- 
trator may deem necessary for the ])urposes recited in Section 3 (a)' 
of the Act to such Federal and State Agencies as he may designate ;: 
provided that nothing in this Supplementary 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 



457 

to an}' other member of the Industry or any other party except to 
such other Governmental Agencies as may be directed by the 
Administrator. 

Section 5. The Supplementary Code Authority as such agency 
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 the terms of said Basic Code. 

Section 6. Any or all information furnished to the Supplementary 
Code Authority by any member of the Industry shall be, pursuant to 
the provisions of this Supplementary Code, subject to verification by 
an examination of the pertinent or necessary books, accounts and 
records of such member by an impartial agency agreed upon by the 
Supplementary Code Authority and the member of the Industry in 
question, or, failing such agreement, by an impartial agent desig- 
nated by the Administrator. Such examination shall be made only 
to the extent permitted by the Act and such rules and regulations as 
may be prescribed by the Administrator. The cost of each such 
examination shall be borne by the Supplementary Code Authority. 

Section 7. It being found necessary in order to support the 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 Supplementary 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 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 necessary 
to support such budget shall be contributed by all members of the 
Industry. 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and secure 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. Each member of the Industry shall pay his or its 
equitable contribution to the expenses of the maintenance of the 
Supplementary Code Authority as hereinabove provided, and sub- 
ject to rules and regulations pertaining thereto issued by the Admin- 
istrator. 

Only members of the Industry complying with the Supplementary 
Code and contributing to the expenses of its administration as here- 
inabove provided unless duly exempted from making such contri- 
bution, shall be entitled to participate in the selection of the 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 obligation 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 

89406—34 20 



458 

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 8. Nothing contained in this Supplementary Code shall 
be deemed to constitute the members of the Supplementary Code 
Authority partners for any purpose whatsoever. Nor shall any 
member of the Supplementary Code Authority be liable in any man- 
ner to anyone for any act of an}^ other member, officer, agent or 
employee of the Supplementary Code Authority. Nor shall any 
member of the Supplementary Code Authority exercising reason- 
able 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 wilful malfeasance or non-feasance. 

Section 9. If any member of the Industry as defined herein is a 
member of any other Industry, the provisions of this Supplementary 
Code shall apply to and effect only that part of his business which 
is included in the Industry. 

Section 10. The Supplementary Code Authority shall without 
any limitations on the foregoing have the following further general 
jjowers and duties subject to such rules and regulations as the 
Administrator may prescribe : 

(a) To insure the execution of the provisions of this Supple- 
mentary Code and provide for the compliance of the Industry with 
the provisions of the Act; 

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

(c) 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 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 wnth the provisions hereof; 

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

(e) To cooperate with the Administrator in regulating the use of 
any N.R.A. insignia solely by those members of the Industry who 
are complying with this Supplementary Code; 

(f) 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. 

Section 11. If the Administrator believes that any action of the 
Supplemontary Code Authority or any agency thereof is unfair or 
unjust or contrary to the ])ublic interest, the Administrator nuiy 
require that such action be suspended to afford an o})portunity for 
investigation of tlio merits of such action. Further action by such 
Supplementar}' Code Authority or agency regarding the matter com- 
plained of may be taken if approved by the Administrator but shall 



459 

not be taken if disapproved by the Administrator within thirty days 
of notice to him of intention to proceed with such action. 

Sectiox 12. Every employer shall provide for the safety and 
health of his employees during the hours and at the places of their 
employment. Standards for safety and health shall be submitted 
by the Supplementary Code Authority to the Administrator within 
three (3) months after the effective date of this Supplementary 
Code. 

Article V — Open Price 

Section 1. Each member of the Industry shall file wnth a con- 
fidential and disinterested agent of the Supplementary Code Au- 
thority or, if none, then with such an agent designated by the 
Administrator, identified lists of any or all of his prices, discounts, 
rebates, allowances, and all other terms or conditions of sale, here- 
inafter in this article referred to as " price terms ", which lists shall 
completely and accurately conform to and represent the individual 
pricing practices of said member. Such lists shall contain the price 
terms for any or all such standard products of the Industry as are 
sold or offered for sale by said member and for such non-standard 
products of said member as shall be designated by the Supplementary 
Code Authority. Said price terms shall in the first instance be filed 
within ten (10) days after the date of approval of this provision 
of such price terms. Price terms and revised price terms shal^ be- 
come effective immediately upon receipt thereof by said agent. 
Immediately upon receipt thereof, said agent shall by telegraph or 
other equally prompt means notify said member of the time of such 
receipt. Such lists and revisions, together with the effective time 
thereof, shall upon receipt be immediately and simultaneously dis- 
tributed to all members of the Industry and to all of their customers 
wdio have applied therefor and have offered to defray the cost actu- 
ally incurred by the Supplementary Code Authority in the prepara- 
tion and distribution thereof and be available for inspection by any 
of their customers at the office of such agent. Said lists or revisions 
or any part thereof shall not be made available to any person until 
released to all members of the Industry and their customers, as afore- 
said; provided, that prices filed in the first instance shall not be 
released until the expiration of the aforesaid ten (10) day period 
Qiter the approval of this Supplementary Code. The Supplementary 
Code Authority shall maintain a permanent file of all price terms 
filed as herein provided, and shall not destroy any part of such 
records except upon written consent of the Administrator. Upon 
request the Supplementary Code Authority shall furnish to the 
Administrator or any duly designated agent of the Administrator 
copies of an}' such lists or revisions of price terms. 

Section 2. When any member of the Industry has filed any 
revision, such member shall not file a higher price within forty-eight 
(48) hours. 

Section 3. Xo member of the Industry shall sell or offer to sell 
any products of tlie Industry, for which price terms have been 
filed pursuant to the provisions of this article, except in accordance 
with such jDrice terms. 



460 

Section 4. No moinbor of the Industry shall enter into any agree- 
ment, understandinjr. combination or conspiracy to fix or maintain 
price terms, nor cause or attempt to cause any member of the Industry 
to chan«re his price terms by the use of intimidation, coercion, or any 
other influence inconsistent with the nuiintenance of the free and 
open nuirket which it is the purpose of this article to create. 

Sectiox 5. No provision of this Supi)lementary Code relatinj^ 
to prices or terms of selling, shipping, or marketing shall ap])ly 
to export trade or sales or shi})ments for export trade within the 
meaning of the term '' export trade '" as it is used in the Export 
Trade Act, adopted April 10, 1918. 

Article VI — 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) Wilfull}^ destructive price cutting is an unfair method of 
comi3etition 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 Supplementary Code Authority that any filed price 
constitutes unfair competition as destructive price cutting, imperil- 
ing small enterprise or tending toward monopoly or the impairment 
of Supplementary Code wages and working conditions. The Sup- 
l)lementary Code Authority shall within five (5) days afford an 
o]jportunity 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 Research and Planning 
Division of N.R.A. which shall render a report and recomenda- 
tion thereon to the Administrator. 

(b) AVhen 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 
shoud 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 jDrice of such product, in violation of Section 2" 
hereof, is forbidden. 

Section 2. Emergeneif Provisions. — (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 mininnnu price for a speci- 
fied ])roduct within the Industry for a limited period is necessary to- 
mitigate the conditions constituting such emergency and to elTectuate 
the purposes of the Act, the Sup})lementary Code Authority may 
cause an imj)artial agency to investigate costs and to recommend to 
the Administrator a determination of the stated minimum \w'\qq. of 
the pro(hict affected by the emergency and thereupon the Adminis- 
tratoi- may jjroceed to determine such stated mininunn price. 

(b) AVhen the Administratoi" shall have determined such stated 
mininunn price for a specified product for a stated period, which 
price, shall be reasonably calculated to mitigate the cnrntfitions of 



461 

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 Supplementary Code Authority may recommend 
review or reconsideration or the Administrator may cause any 
determinations hereunder to be reviewed or reconsidered and 
appropriate action taken. 

Article VII — Unfair Trade Practices 

For all purposes of this Supplementary Code the following de- 
scribed Acts shall constitute unfair practices. Such unfair practices 
shall be deemed to be unfair methods of competition in commerce 
within the meaning of the Federal Trade Commission Act as amend- 
ed, and any member of the Industry who shall directly or indirectly 
through any officer, employee, agent or representative knowingly 
use or employ any of such unfair practices shall be deemed guilty of 
a violation of this Supplementary Code. 

A. The provisions of Article V, paragraphs B to G, inclusive, of 
the Basic Code are a part of this Supplementary Code to the same 
extent as if here repeated and set forth at length. 

B. Using or substituting any material superior in quality to that 
specified by the purchaser of any product, for the purpose of influ- 
encing purchase or future purchase. 

C. Cancelling in whole or in part, or permitting the cancellation 
in whole or in part, of any contract of sale of any product, except 
for a fair consideration. 

D. Inducing or attempting to induce the breach of any provision 
of a contract to which a member of the Industry is a party. This 
clause shall not be construed to apply to employment contracts. 

E. Offering or giving to any purchaser of any product any guar- 
anty or protection in any form against decline after the date of ship- 
ment in the market price of such product. 

F. Soliciting by any member of the Industry the pooling of orders 
from several buyers in a manner to give the buj^ers advantage of 
more favorable price or terms than those to which the buyers would 
be entitled individually; provided, however, that pooled buying is 
not prohibited where the seller may have a measuralDle compensating 
advantage. 

G. Consigning merchandise for any reason whatsoever, except to 
a wholly owned or controlled subsidiary, or to a direct representa- 
tive having a stock subject to control of the manufacturer for pric- 
ing, invoicing and terms, or except under circumstances to be de- 
fined by the Supplementary Code Authority and approved by the 
Administrator where peculiar circumstances in the Industry require 
the practice. 

H. Making contracts requiring delivery of specified quantity or 
quantities in specified time, if demanded by buyer, but not requiring 
the buyer to accept such quantity or quantities within the specified 
time. 

I. Making contracts at a specified price for an unspecified quan- 
tity for delivery as demanded by the buyer during the period unless 



462 

the contract is for a fixed percentage of the total consumption re- 
qiiiroments of tlie purchaser of the particular product; or making 
anj^ such unspecified quantity contract above described except on a 
standard form or forms approved by the Su])plementary Code Au- 
thority and the Administrator; or failing to file with the Secretary 
a copy of each and every different form of contract entered into by 
a member of the Industry within five days after entering into a con- 
tract in such form. 

J, Making contracts for periods in excess of three months (all 
contracts to expire not later than the last days of March, June, 
September or December) or quoting on or making any quarterly con- 
tract more than thirty (30) days prior to the first day of the calen- 
dar quarter covered by the contract, or shipping pursuant to any 
contract more than fifteen (15) days after the expiration thereof, 
or as soon thereafter as seller can manufacture and ship the same, 
or making contracts containing an option of extension or removal on 
the part of either buyer or seller; provided, however, that the fore- 
going provisions of this paragraph J shall not apply to a bona fide 
order for a specified quantity of specified types, sizes and kinds of 
products of the Industry for delivery at specified dates not extending 
beyond four months from receipt of order, at a specified price. 

K. Offering any article by price or otherwise in a manner to in- 
fluence the purchase of another article. 

L. Continuing to employ any salesman, agent or employee who 
shall give any or all of his commission to any purchaser without 
the knowledge of his employer. 

M. Making or continuing any arrangement with a jobber, dealer 
or syndicate buyer whereby such jobber, dealer or syndicate buyer 
acts both as agent and as jobber, dealer or syndicate buyer in a 
specific transaction and thereby receives both the jobber's, dealer's 
or syndicate buyer's discount and the agent's commission on the same 
transaction, or entering into any kind of any exclusive territory 
arrangement with a jobber, dealer, or syndicate buyer, provided, 
that this clause shall not apply in any way to any selling arrange- 
ments wherein a national distributor contracts to sell the entire 
output of a particular manufacturer as such manufacturer's agent. 

Article VIII — ^Monopolies 

No provision of this Supplementary Code shall be so applied as 
to ])ormit monopolies or monopolistic practices, or to eliminate, op- 
press or discriminate against small enterprises. 

Article IX — Modifications 

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

Section 2, This Supplementary Code, except as to provisions re- 
quired by the Act, may be modified on the basis of experience or 
changes in circumstances, such modifications to be based upon ap- 



plication to the Administrator and such Notice and Hearing as he 
shall specify and to become effective on approval by the President. 

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 costs 
should be delayed, but wdien made, such increases should, so far as 
possible, be limited to actual additional increases in the seller's costs. 

Article XI — Effective Date 

This Supplementary Code shall become effective at 12:01 o'clock 
A.M. Eastern Standard Time of the tenth day after it is approved by 
the President. 

Approved Code No. 84 — Supplement No. 49. 
Registry 1104^3. 



Approved Code No. 84 — Supplement No. 50 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

VISE MANUFACTURING INDUSTRY 

As Approved on September 1, 1934 



ORDER 



Approving Supplementary Code or Fair Competition for the Vise 
Manufacturing Industry 

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 
Fabricated 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 Vise Manu- 
facturing 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 
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 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 here- 
by apjjroved. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Barton W. Murray, 

Division Administrator. 

Washington, D.C, 

September i, WSJ^. 

(465) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on the Supplementary Code of Fair Competi- 
tion for the Vise Manufacturing Industry, a division of the Fabri- 
cated Metal Products Manufacturing and Metal Finishing and 
Metal Coating Industry, the hearing having been conducted thereon 
in Washington, D.C., Ma}^ 10, 1934, in accordance with the provi- 
sions of Title I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Vise 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 Supplementary Code of Fair 
Competition, as provided for in Section 1 of Article VI of the Basic 
Code, for the Fabricated Metal Products Manufacturing and Metal 
Finishing and Metal Coating Industry approved by you on the sec- 
ond 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 Industrj^ 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 five (5) members to be elected at a meeting called by the Tem- 
porary Supplementary Code Autliority, and gives the Administrator 
the authority to appoint one additional member Avithout vote and pro- 
vides machinery for obtaining statistics and the administration of 
the Supplementary Code. 

Article V provides for cost finding and accounting. 

Article VI provides for open price filing. 

Article VII provides means for preventing 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. 

Article IX sets forth that no provisions of this Supi)lementary 
Code relating to prices or terms of selling, shipping or marketing, 
shall apply to export trade. 

(466) 



467 

Article X contains the mandatory provisions contained in Section 
10 (b) of the Act and also provides for the submission of proposed 
amendments to the Supplementary Code. 

Article XI provides against monopolies and monopolistic practices. 

Article XII recognizes that price increases be limited to actual 
additional increases in the seller's costs. 

Article XIII states the effective date and duration of this Supple- 
mentary Code. 

FINDINGS 

The Acting 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 Avill 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 
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 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 
applicant association is an industrial association truly representative 
of the aforesaid industry; and that said association imposes no 
inequitable restrictions on admission to membership therein. 

(d) The Supplementary Code is not designed to and will not per- 
mit monopolies or monopolistic practices. 

(c) The Supplementary Code is not designed to and will not elim- 
inate or f)ppress 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 
Supi)lementary Code. 

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

Respectfully, 

Hugh S. Johnson, 

A dministrator. 
September 1, 1934. 



SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
THE VISE I^IANUFACTURING INDUSTRY 

A Division or the Fabricated Metal Products Manufacturing and 
Metal Finishing and Metal Coating Industry 

Article I — Purposes 

To effectuate the policy of Title 1 of the National Industrial Re- 
covery Act, the following provisions are established as a Supplemen- 
tary Code of Fair Competition for the Vise Manufacturing Industry, 
pursuant to Article VI of the Basic Code of Fair Competition for 
the Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating Industry, approved by the President of the United 
States on the 2nd day of November, 1933, and the provisions of this 
Supplementary Code shall be the Standards of Fair Competition 
for the Industry and shall be binding on every member thereof. 

Article II — Definitions 

Section 1. The term " Vise Manufacturing Industrj^ ", hereafter 
referred to as " the Industry ", is defined to mean the manufacture 
for sale of metal Vises, commonly known to the trade as Machinists, 
Filers, Coachmakers, Steamfitters, Combination Vises, Woodwork- 
ing Vises, Clamp Vises, Solid Box Vises, Cabinetmakers, Body- 
makers, Patternmakers, Toolmakers, Universal Vises, Machinists 
Bench Vises, Farmers Vises, Carpenters Vises, Oval Slide Vises, 
Garage and/or Utility Vises (otherwise termed Steel Bar Vises), 
Universal Vises, Home Workshop Vises or Home and Garage Vises, 
or any metal Vises used for the same purpose as the above listed Vises 
are used and not specifically named herein. 

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

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

Section 4. The term " member of the Industry " as used herein, 
includes, but without limitation, any individual, partnership, asso- 
ciation, corporation or other form of enterprise engaged in the Indus- 
try either as an employer or on his or its 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. 

Section 6. 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 

(468) 



469 

Industry, as approved by the President on the 2nd day of November, 
1933. 

Section 7. 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 " Supplementary Code Committee ", as used 
herein, is defined to mean the Board of Directors of the Vise Manu- 
facturers Association, authorized by that Association to present this 
Supplementary Code. 

Section 9. The term " Secretary ", as used herein, is defined to 
mean the Secretary of the Supplementary Code Authority. 

Section 10. The term " Confidential Agent ", as used herein, is 
defined to mean the impartial agency designated by the Supple- 
mentary Code Authorit3^ 

Section 11. The term " Federation •', as used herein, is defined 
to mean the Fabricated Metal Products Federation or its successor. 

Section 12. The term "Association ", as used herein, is defined to 
mean the Vise Manufacturers Association or its successor. 

Section 13. The term " special product ", as used herein, is defined 
to mean a product of the Industry manufactured by a member of the 
Industry according to specific design and/or marking and/or other 
specifications stipulated by the purchaser, for sale to one such 
purchaser alone. 

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 Arti- 
cle III of its Basic Code as approved by the President November 
2nd, 1933, including Section 1 of said Article III, by which the 
provisions of Sub-section (1), (2) and (3) of Section 7 (a) of Title I 
of the Act are made conditions of this Code, are specifically incor- 
porated herein and made a part hereof as the wage, hour and labor 
provisions of this Supplementary Code. 

Article IV — Organization and Administration 

Section 1. During the period not to exceed sixty (60) days fol- 
lowing the effective date of this Supplementary Code, the Supple- 
mentary Code Committee shall constitute a Temporary Supple- 
mentary Code Authority, until the Supplementary Code Authority 
is elected. 

There shall be constituted within the sixty (60) day period a 
Supplementary Code Authority consisting of the President of the 
Association who shall be an ex-officio member with full voting- 
powers and five (5) elected members, to be elected by the members 
of the Industry at a meeting called by the Temporary Supple- 
mentary Code Authority upon ten (10) days' notice sent by reg- 
istered mail to all members of the Industry, whose names may be 
ascertained after diligent search, who may vote either in person or 
by proxy. The members of the Supplementary Code Authority 
first elected shall serve for one vear or until such time as their 



470 

successors are elected. Thereafter, members of the Supplementary 
Code Authority shall be elected at a meeting of the members of 
the Industry to be held at the tiuie and place of each annual meet- 
ing of the Association to serve until the folloAving animal meeting, 
due notice of the time and place of the election to be sent to all 
members of the Industry whose names may be ascertained after 
diligent search. 

The members of the Supplementary Code Authority, except the 
President of the Association, shall be elected in the following 
manner : 

(a) One (1) member, who is a member of the Industry and a 
non-member of the Association, may be elected by a majority vote 
of all non-members of the Association who are present, either in 
person, or by proxy, each member to have one vote. 

(b) Four (4) members by a fifty-one percent (51%) vote of the 
members of the Association present, either in person or by proxy, 
weighted on the basis of one vote for each member of the Industry 
and one additional vote for each five thousand dollars ($5,000.00) 
of annual net sales in the previous calendar j^ear reported to the 
Supplementary Code Authority, or any agency designated by it, 
provided, however, that no one member may cast more than twenty- 
five percent (25%) of the total number of votes cast. 

A vacancy in the membership of the Supplementary Code Author- 
ity shall be filled by a majority vote of the remaining members of the 
Supplementary Code Authority, provided, however, that the vacancy 
shall be filled from the class of membership in the Supplementary 
Code Authority in which such vacancy occurs. 

In addition thereto the Administrator may appoint a member of 
the Supplementary Code Authority who without vote shall serve 
without expense to the Industry, 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. 

Section 2. Each trade association directly or indirectly partici- 
pating in the selection or activities of the Supplementary Code 
Authority shall: (1) impose no inequitable restrictions on admission 
to membership, and (2) shall submit to the Administrator true copies 
of its Articles of Association, By-Laws, Regulations and any amend- 
ments 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 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 Administrator 
nuiy prescribe such hearings as he may deem proper; and, there- 
after, if he shall find that the Supplementary Code Authority is not 
truly I'epresentative or does not in other respects comply with the 
])rovisions of the Act, may require appropriate modification of the 
Supplementary Code Authority. 

Section 4. It being found necessary in order to support the admin- 
istration of this Supplementary Code and to maintain the standards 
of fair competition ostabHshed hereunder and to effectuate the policy 
of the Act, the Supplementary Code Authority is authorized : 



471 

(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 Supplementary 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. 

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 Admin- 
istrator. Only member Industry complying with the Supplementary 
Code and contributing to the expenses of its administration as 
hereinabove provided, unless duly exempted from making such con- 
tributions, 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 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 the 
api^roval 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. 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 adopt By-Laws and Rules and Regulations for its pro- 
cedure. 

(b) To obtain from the members of the Industry, through its 
Confidential Agent, such information and reports as required for 
the administration of this Supplementary Code. In addition to 
information required to be submitted to the Supplementary Code 
Authority, the members of the Industry, subject to this Supple- 
mentary Code, shall furnish such statistical information as the 
Administrator may deem necessary for the purposes recited in Sec- 
tion 3(a) of the Act, to such Federal and State agencies as he may 
designate; provided that nothing in this Supplementary Code shall 
relieve any member of the Industry of any existing obligations to 



472 ' 

furnish rbports to any Government agency. No individual report 
shall be disclosed to any other members of the Industry or any other 
party except to such other Governmental agencies as may be directed 
by the Administrator. 

(c) 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 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. 

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

(e) To appoint a trade practice Committee which shall meet with 
the trade practice committees appointed under such other codes as 
may be related to the Industry for the purpose of formulating fair 
trade practices to govern the relationships between production and 
distribution employers under this Supplementary Code and under 
such others to the end that such fair trade practices may be proposed 
to the Administrator as amendments to this Supplementary Code 
and such other codes. 

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

(g) To furnish from time to time to the Basic Code Authority des- 
ignated in said Basic Code such information as may be required to 
be furnished under the terms of the Basic Code. 

(h) To appoint a committee, with consumer and governmental 
representatives designated by the Administrator, to make a study 
of dimensional and quality standards to be ai)plied to the products 
manufactured by this Industry. Such committee shall report within 
at least six (G) months to the Supplementary Code Authority, and 
if the recommendations of said committee are approved by the Sup- 
plementary Code Authority and the Administrator, the standards 
thus established shall be adhered to by all members of this Industry 
in manufacturing the products of this Industry. 

Section 6. Pursuant to the provisions of the Act and subject to 
such rules and regulations as the Administrator may prescribe, the 
Supplementary Code Authority shall have the ])ower to investigate 
all complaints filed with it by one member of the Industry against 
another member of the Industry. In the event of complaint being 
registered with the Supplementary Code Authority against any cor- 
porate member of the Industry, alleging a violation of this Supple- 
mentary Code, the Supplementary Code Authority may cause an 
investigation to be made by a person mutually agreed upon bv the 
Supplementary Code Authority and the member of the Industry 
against whom the complaint is filed, or, if they are unable to agree 
within a reasonable time, by a disinterested person appointed by the 
Administrator. The Supplementary Code Authority may require 



473 

the member complained against to file with such investigator, within 
such reasonable time after receipt of a copy of the complaint, if the 
Supplementary Code Authority shall determine, an answer to such 
complaint accompanied by supporting data. Both answer and data 
shall be verified by affidavit. The investigator shall examine so 
much of the pertinent books and records of such member as may be 
required to verify the statements contained in said answer and/or 
the accuracy of the data supporting such statements. If the matter 
cannot thereafter be satisfactorily adjusted within the Industry, the 
facts may be placed before the Basic Code Authority to be presented 
to the Administrator for such procedure as he may deem advisable 
under the Act. 

Section 7. All individual and private information received by the 
Supplementary Code Authority through the Confidential Agent, or 
as a result of investigation shall be held in strict confidence and not 
disclosed to any competitor or other persons without the permission 
of the member of the Industry involved. 

Section 8. To the extent permitted by the Act and subject to such 
rules and regulations as the Administrator may prescribe, any or all 
information furnished to tlie Supplementary Code Authority by any 
member of this Industry pursuant to the provisions of this Supple- 
mentary Code shall be subject to verification by an impartial agency 
agreed upon by the Supplementary Code Authority and the member 
of the Industry in question, and, failing such agreement, such impar- 
tial agency shall be selected by the Administrator, which impartial 
agency may check so much of the pertinent books, accounts and 
records of such members of the Industry as may be required to verify 
the accuracy of the information so furnished. 

Section 9. Every emplo3-er shall provide for the safety and health 
of employees during the hours and at the places of their employment. 
Standards for safety and health shall be submitted by the Supple- 
mentary Code Authority to the Administrator within three (3) 
months*^ after the effective date of the Supplementary Code. 

Section 10. 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 malfeasance or 
non-feasance. 

Section 11. If the Administrator believes that any action of the 
Supplementary Code Authority or any agency thereof is unfair or 
unjust or contrary to the public interest, the Administrator may 
require that such action be suspended to afford an opportunity for 
investigation of the merits of such action. Further action by such 
Supplementary Code Authority or agency regarding the matter com- 
plained of may be taken if approved by the xidministrator, but shall 
not be taken if disapproved by the Administrator within thirty (30) 
days of notice to him of intention to proceed with such action. 

8940G— ;u 21 



474 
Article V — Cost Finding and Accounting 

The Supplementary Code Authority shall cause to be formulated 
metliods of cost finding and accounting capable of use by all mem- 
bers of the Industry, and shall submit such methods to the Adminis- 
trator for review. If approved by the Administrator, full informa- 
tion concerning such methods shall be made available to all members 
of this Industry. Thereafter, each member of this Industry shall 
utilize such methods to the extent found practicable. Nothing herein 
contained shall be construed to permit the Sui)plementary Code 
Authority, any agent thereof, or any member of this Industry to 
suggest uniform additions, percentages or differentials or other uni- 
form items of cost which are designed to bring about arbitrary 
uniformity of costs or prices. 

Article VI — Open Price Filing 

Section 1. Each member of this Industry shall file with a confi- 
dential and disinterested agent of the Supplementary Code Author- 
ity or, if none, then with such an agent designated by the Adminis- 
trator, identified lists of all his prices, discounts, rebates, allow- 
ances, and all other terms or conditions of sale, hereinafter in this 
Article referred to as " price terms ", which lists shall completely 
and accurately conform to and represent the individual pricing prac- 
tices of said member. Such lists shall contain the price terms for all 
such standard products of this Industry as are sold or offered for 
sale by said member of this Industry and for such non-standard prod- 
uct of said member of this Industry as shall be designated by the 
Supplementary Code Authority. Said price terms shall in the first 
instance be filed within 10 days after the date of approval of this 
Supplementary Code. Price terms and revised price terms shall 
become effective immediately upon receipt thereof by said Agent. 
Immediately upon receipt thereof, said Agent shall by telegraph or 
other equal!}' prompt means notif}' said member of the time of such 
receipt. Such lists and revisions, together with the effective time 
thereof, shall upon receipt be immediatelj'- and simultaneously dis- 
tributed to all members of this Industry and to all of their cus- 
tomers who have applied therefor and have offered to defray the 
cost actually incurred by the Supplementary Code Authority in the 
preparation and distribution thereof and be avaihible for ins])ection 
by any of their customers at the office of said Agent. Said lists or 
revisions or anj'' part thereof shall not be made available to any per- 
son until released to all members of the Industry and their customers, 
as aforesaid; provided, that prices filed in the first instance shall not 
be released until the expiration of the aforesaid 10 day period after 
the approval of this Supplementary Code. The Supplementary 
Code Authority shall maintain a ])ormanent 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. Upon 
request, the Supplementary Code Authority shall furnish to the 
Administrator or any duly designated Agent of the Administrator 
copies of any such lists or revisions of price terms. 



475 

Section 2. When any member of this Industry has filed any revi- 
sion, such member of this Industry shall not file a higher price 
within 48 hours. 

Section 3. No member of this Industry shall sell or offer to sell any 
products/services of the Industry, for which price terms have been 
filed pursuant to the provisions of this Article, except in accordance 
with such price terms. 

Seciton 4. Each member of this Industry shall furnish the said 
Atrent for distribution with such number of copies of his price list as 
the Supplementaiy Code Authority may prescribe. 

Section, 5. No member of this Industry shall enter into any agree- 
ment, understanding, combination or conspiracy to fix or maintain 
price terms, nor cause or attempt to cause an}'' member of this 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. 

Section 6. The provisions of this Article VI shall not apply to 
the offer for sale or sale of special products as defined in Article II 
of this Supplementary Code. 

Section 7. Nothing in Article VI of this Supplementary Code 
shall apply to sales to employees for their own use or between mem- 
bers of the Industry, provided that such sales shall not be below cost, 
and provided further that resale of such products by the purchasing 
members of the Industry shall be in accord with the provisions of 
this Supplementary Code. 

Article VII^ — Costs and Price Cutting 

Section 1. The standards of fair competition for this Industry 
with reference to pricing practices are declared to be as follows: 

(a) Wilfully destructive price cutting is an unfair method of com- 
petition and is forbidden. Any member of this Industry or of any 
other Industry or the customers of either may at any time complain 
to the Supplementary Code Authority that any filed price constitutes 
unfair competition as destructive price cutting, imperiling small 
enterprices or tending toward monopoly or the impairment of code 
wages and working conditions. The Supplementary Code Author- 
ity shall within 5 days afford an opportunity to the member filino- 
the price to answer such complaint and shall within 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 N.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 con- 
sideration should be given to costs in the determination of pricing 
policies. 

(c) When an emergency exists as to any given product, sale beiow 
the stated minimum price of such products, in violation of Section 2 
hereof, is forbidden. 

Section 2. Emergency Provisions. — (a) If the x\.dministracor, 
after investigation shall at any time find both (1) that ai> emer- 



476 

gency has arisen within this Industry adversely affecting small enter- 
prises or wages or labor conditions, or tending toward monopoly or 
other acute conditions which tend to defeat the purposes of the Act; 
and (2) that the determination of the stated minimum price for a 
specified product within this Industry for a limited period is neces- 
sary to mitigate the conditions constituting such emergency and to 
effectuate the purposes of the Act, the Supplementary Code Author- 
ity may cause an impartial agency to investigate costs and to recom- 
mend to the Administrator a determination of the stated minimum 
jDrice of the product affected by the emergency and thereupon the 
Administrator maj^ 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 In- 
dustrial Eecovery Act, he shall publish such price. Thereafter, 
during such stated period, no member of this 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 Supplementary Code Authority 
may recommend review or reconsideration or the Administrator may 
cause any determination hereunder to be reviewed or reconsidered 
and appropriate action taken. 

Article VIII — Unfair Trade Practices 

In addition to the unfair trade practices covered in Article V of 
the Basic Code, except sections A, B, and F thereof, which are made 
a part hereof the same as though repeated and set forth at length, 
for all purposes of this Supplementary Code, the following described 
acts shall constitute unfair trade practices. Any member of the 
Industry who shall use or employ any of such unfair trade practices 
shall be guilty of a violation of this Supplementary Code. 

EuLE 1. Secret Rehates. — No member of the Industry shall se- 
cretly offer or make any payment or allowance of a rebate, refund, 
commission, credit, unearned discount or excess allowance, whether in 
the form of money or otherwise, nor shall a member of the Industry 
secretly offer or extend to any customer any special service or privi- 
lege not extended to all customers of the same class, for the purpose 
of influencing a sale. 

Rule 2. No member of the Industry shall withhold from, or 
insert in, any invoice a false record wholly or in part of the trans- 
action represented on the face thereof. 

Rule 3. No member of the Industry shall permit the splitting of 
commissions or other compensation for the sale of any product of 
the Industry received by his emph>yee or agent with the buyer, or 
his agent, for the purpose of influencing a sale. 

Rule 4. No member of the Industry shall offer or give prizes, 
premiums or gifts to purchasers or their agents in connection with 
the sale of products of the Industry or as an inducement thereto in 
any manner which involves commercial bribery in any form. 

Rule 5. No member of the Industry shall give any allowance for 
«&ed i^roducts of the Industry unless sold with the privilege of 



i 



477 

return. Nothing contained in this rule shall be construed to prohibit 
a member of the Industry from allowing credit for or making free 
replacement of any product of his own manufacture because of 
errors in shipment or which is defective either as to material or 
workmanship. 

Rule 6. No member of the Industry shall give catalog allowances 
to distributors or those persons publishing for tiiem. Nothing con- 
tained in this rule shall be construed to prohibit legitimate arid 
bona fide advertising allowances. 

EuLE 7. No member of the Industry shall guarantee prices on 
products of the Industry, except special products, against decline 
beyond the date of shipment. 

EuLE 8. No member of the Industry shall accept an order at old 
prices as published in accordance with the provisions of Article VII, 
after the effective date of any change in price. 

EuLE 9. No member of the Industry shall accept an order for 
future deliver}' unless the terms of sale as to price, specifications 
and delivery are definitely stated, provided, however that the pro- 
visions of this Eule shall not apply to the sale of special products. 

EuLE 10. No member of the Industr}^ shall fail to brand the prod- 
ucts of the Industry manufactured by him Avith his trade-mark, 
trade-name or some other mark of identification. 

EuLE 11. No member of the Industry shall accept return of mer- 
chantable surplus goods except for merchandise credit only, such 
credit to be subject to deduction for transportation costs, for any 
necessary refinishing. and a charge for handling. Nothing in this 
Eule 11 shall be construed to conflict with the provisions of Eule 5 
of this Article. 

Eule. 12. No member of the Industry shall grant any more favor- 
able terms of payment than 60 days net from date of shipment or 
2% for cash, on the tenth day of the month, for shipments made 
during the preceding month. 

Eule. 13. No member of the Industry shall ship goods on con- 
signment except under circumstances to be defined by the Supple- 
mentary Code Authority where peculiar circumstances of the trade 
or industry require the practice. 

Eule. 14. No member of the Industry shall brand or mark or pack 
any goods in any manner which is intended to or does deceive or 
mislead purchasers with respect to the brand, grade, quality, quan- 
tity, origin, size, substance, character, nature, finish, material, content 
or preparation of such goods. 

Article IX — Export Trade 

No provisions of this Supplementary Code relating to prices or 
terms of selling, shipping or marketing, shall apply to export trade 
or sales or shipments for export trade. " Export Trade " shall be as 
defined in the Export Trade Act adopted April 10, 1918. 

Article X — Modifications 

Section 1. As provided in Section 10 (b) of the Act, the President 
may from time to time cancel or modify any order, approval, license, 
rule or resulation issued under Tit^e I of the Act. 



478 

Section 2. This Supplementary Code, except as to provisions 
required by the Act, may be modified and/or amended on the basis 
of ex])orience or changes in circumstances, such modifications and/or 
amendments to be based upon application by the Supplementary 
Code Authority' or other re])resentative group within the Industry 
to the Administrator and such notice and hearing as he shall specify 
and to become effective as part of this Supplementary Code on the 
approval by the President. 

Article XI — Monopoly 

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 XII — 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 cost, 
should be delayed, and when made, such increases should, so far 
as possible, be limited to actual additional increases in the sellers' 
costs. 

Article XIII — Effective Date and Duration 

This Supi^lementary 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 wdiich the President shall, by 
proclamation, or the Congress shall, by joint resolution, declare that 
the emergency recognized by Section 1 of the National Industrial 
Recovery Act has ended. 

Approved Code No. 84 — Supplement No. 50. 
Registry No. 1399-61. 



Approved Code No. 84 — Supplement No, 51 
SUPPLEMENT TO CODE OF FAIR COMPETITION 

FOR THE 

REFRIGERATION VALVES AND FITTINGS MANU- 
FACTURING INDUSTRY 

As Approved on September 6, 1934 



ORDER 



Approving Supplementary Code of Fair Competition for the 
Refrigeration Valves and Fittings Manufacturing Industry 

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 
Fabricated 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 Refrigera- 
tion Valves and Fittings Manufacturing Industry, and hearing hav- 
ing been duly held thereon ; and the annexed report on said Supple- 
mentary 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 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 Administrator. 

Washington, D.C, 

Sfivtemler 6, 1934. 

(479) 



REPORT TO THE PRESIDENT 

The PUKSIDENT. 

The White Home. 
Sir: This is a report on the Supplementary Code of Fair Comf)e- 
tition for the Refri<reration Valves and Fittings Manufacturing 
Industry, a Division of the Fabricated Metal Products Manufactur- 
ing and Metal Finishing and Metal Coating Industry, the hearing 
having been conducted thereon in Washington, D.C., April 9, 1934, 
in accordance with the provisions of Title I of the National Indus- 
trial Recovery Act. 

GENERAL STATEMENT 

The Refrigeration Valves and Fittings 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 
Supplementary Code of Fair Competition, as provided for in Section 
1 of Article VI of the Basic Code, for the Fabricated Metal Products 
Manufacturing 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 on 
November 2, 1933, are the labor provisions of this Supplementary 
Code. 

Article IV establishes a Supplementary Code Authority consist- 
ing of five (5) members, to be elected by the members of the Industry 
at a meeting called by the temporary Supplementary Code Author- 
ity, and gives the Administrator the authority to appoint one addi- 
tional member without vote, and provides the 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 sets forth the standards of fair competition for the 
Industry, with reference to pricing practices and forbids wilfully 
destructive price-cutting. 

Article VII 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. Mecha- 
nism is also })rovided for the filing of price revisions. 

Article VIII incorporates the unfair trade practices of this Sup- 
plementary Code which have been designed to off-set unfair compe- 
tition in this Division of the Industry. 

(480) 



481 

Article IX provides against monopolies or monopolistic practices. 

Article X contains the mandatory provisions contained in Section 
10 (b) of the Act and also provides for submission of proposed 
amendments to the Supplementary Code. 

Article XI recognizes that price increases be limited to actual addi- 
tional increases in the sellers costs. 

Article XII states the effective date of this Supplementary Code. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 
said Supi^lementary 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 employs not more than 50,000 em- 
ploj^ees; 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 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 approval of said 
Supplementary Code. 

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

Respectfully, 

Hugh S. Johnson, 

Administrator. 
September 6, 1934. 



SuPrLKMKXTARY CoDE OF FaIR COMPETITION TOR THE ReFRTGERATIGN 

Valves and Fi'ittngs Manufacturing Industry 

A DIVISION OF the FABRICATED METAL PRODUCTS MANUFACTURING ANI> 
METAL FINISHING AND METAL COATING INDUSTRY 

Article I — Purposes 

To efTectuate the policy of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Supple- 
mentary Code of Fair Competition for the Refrigeration Valves and 
Fittings Manufacturing Industry. Pursuant to Article VI of the 
Basic Code of Fair Competition for the Fabricated Metal Products 
Manufacturing and Metal Finishing and Metal Coating Industry ap- 
proved by the President of the United States on the second day of 
November, 1933, the provisions of the Supplementary Code shall be 
the standard of fair competition for the Refrigeration Valves and 
Fittings Manufacturing Industry and shall be binding uix)n every 
member thereof. 

Article II — Definitions 

Section 1. The term " Refrigeration Valves & Fittings Manufac- 
turing Industry " hereafter referred to as the " Industrj^ " is defined 
to mean the manufacture for sale of valves and fittings as used on 
household or commercial refrigerating or the refrigerating equipment 
of air conditioning installations, or any part thereof, for controlling 
the flow in or connecting the tubing lines. Valves and Fittings for 
refrigerating equipment using ammonia, as a refrigerant, are in- 
cluded in this Industiy only when such valves and fittings are made 
from a non-ferrous alloy. 

The term " Refrigeration Valves and Fittings Manufacturing In- 
dustry "as above defined shall not include valves and/or fittings and 
their parts produced by manufacturers of household or commercial 
refrigeration equipment or air conditioning equipment for use in 
their products. 

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. 

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

Section 4. The term " member of the industry " as used herein 
includes but without limitation any individual, partnership, asso- 
ciation, corporation or other form of enterprise engaged in the 
industry either as an employer or on his own or its own behalf. 

Section 5. The terms " President ", "Act ", and "Administrator " 
as used herein shall mean respectively the President of the United 

(482) 



483 

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

Section 6. 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 2nd day of November, 
1933. 

Section 7. 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 Refrigeration Valves and Fittings Manufacturing Asso- 
ciation or its successor. 

Section 9. The term " Supplementary Code Committee " is defined 
to mean the Executive Committee of the Association. 

Section 10. The term '" Impartial Agent " as used herein is defined 
to mean the impartial agency designated by the Supplementary Code 
Authority. 

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 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, Novem- 
ber 2, 1933, including Section I of said Article III, by which tiie pro- 
visions of subsections (1), (2) and (3) of Section 7 (a) of Title I 
of the Act are made conditions of this Supplementary Code, are 
specifically incorporated herein and made a part hereof as the wage, 
hour and labor provisions of this Supplementary Code. 

Aeticle IV — Organization and Administration 

Section 1. During the period not to exceed sixty (60) days fol- 
lowing the effective date of this Supplementary Code, the Supple- 
mentary Code Committee of the Industry shall constitute a tem- 
porary Supplementary Code Authority until the Supplementary 
Code Authority is elected. There shall be constituted within the 
sixty-day period a Supplementary Code Authority consisting of five 
members to be elected by the members of the Industry, at a meeting 
called by the Temporary Supplementary Code Authority, upon ten 
dayl' notice sent by registered mail to all members of the Industry 
whose names ma}^ be ascertained after diligent search, who may vote 
either in person or by proxy. The members of the Supplementary 
Code Authority first elected shall serve until the following annual 
meeting of the Association, and thereafter, members of the Supple- 
mentary Code Authority shall be elected by the members of the In- 
dustry, such election to be held at the time and place of each annual 
meeting of the Association to serve until the following annual meet- 
ing. The members of the SupiDlementary Code Authority shall be 
elected in the followins: manner: 



484 

(ii) One mt'inbor who shall be a member of the Industry by a 
majority vote of all mcmbtn-s of the Industry present in person or 
by proxy, each member to have one vote. 

(b) One member who is a member of the Industry but not a 
member of the Association by a majority vote of all those members 
of the Industry, who are not members of the Association, present in 
person or by proxy, each member to have one vote. 

In the event that the non-members fail to elect such non-member, 
then the Administrator may ap])oint such non-member form a list of 
two non-members submitted by the Supplementary Code Authority 
as at the time constituted. 

(c) Three members by majority vote of members of the Associa- 
tion, present in person or by proxy, weighted on the basis of one 
vote for each member and one additional vote for each $25,000.00 or 
major fraction thereof of annual sales in the previous calendar year 
reported to the Supplementary Code Authority; provided, however, 
that no one member may cast more than 25 percent of total number 
of votes cast. 

A vacancy in the membership of the Supplementary Code Au- 
thority may be filled by a majority vote of the remaining members 
of the Supplementary Code Authority, provided that such vacancy 
shall be filled from the class in which it occurs. 

In addition thereto the Administrator may appoint a member of 
the Sup