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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 

NATIONAL INDUSTRIAL RECOVERY BOARD 



CODES OF FAIR COMPETITION 

Nos. 544-553 
AS APPROVED 

JANUARY 24-MARCH 5, 1935 

WITH SUPPLEMENTAL CODES, AMENDMENTS 

EXECUTIVE AND ADMINISTRATIVE 

ORDERS ISSUED BETWEEN 

THESE DATES 



VOLUME XXI 




WE DO OUR PART 



UKlTED STATESi 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 



MAY 26 1936 



Vv 1\ 



*iU Supt. ot Oocuraents 



CONTEXTS 



Code 
No. 



Industry 



544 
545 
546 
547 
548 
549 

550 
551 
552 
553 



CODES OF FAIR COMPETITION 

Auto Rebuilding and Refinishing Trade 

Natural Orgarac Products 

Pacific Coast Dried Fruit 

Seed Trade 

Package and Pasteurized-Blended and Process Cheese 

Cigarette, Snuflf, Chewing, and Smoking Tobacco Manu 

facturing 

Manufacturing Industry In The Territory of Hawaii 

Clock Manufacturing 

Music Publishing 

Restaurant Trade In the Territory of Hawaii 



Date ap- 
proved 



Page 



1-24-35 
1-25-35 
1-26-35 
2- 2-35 
2- 2-35 

2- 9-35 
2-14-35 
2-26-35 

3- 4-35 
3- 5-35 



Industry 



Date 



AMENDMENTS 

Bituminous Coal, No. 6 

Grinding Wheel. No. 2 

Elevator Manufacturing, No. 1 (A Division of Construction).. 

End Grain Strip Wood Block, No. 2 

Lumber and Timber Products, No. 29 

Wholesale IMonumental Granite, No. 2 

Solid Braided Cord, No. 2 

Automobile Manufacturing, No. 5 

Cotton Textile. No. 13 

Farm Equipment, No. 4 

Hardwood Distillation, No. 4 

Lumber and Timber Products, No. 30 

?.Iusical Merchandise Manufacturing, No. 1 

Shoe Shank Manufacturing, No. 2 (A Division of Fabricated 
Metal Products Manufacturing and Metal Finishing and 

Metal Coating) 

Silk Textile, No. 4 

Spice Grinding, No. 2 

Milk and Ice Cream Can Manufacturing, No. 1 (A Division of 
Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating) 

Chewing Gum Manufacturing, No. 1 

Paper Bag [Manufacturing, No. 1 

Bias Tape, No. 1 

Paper Bag Manufacturing, No. 2 

Paper and Pulp, No. 3 

Curled Hair Manufacturing Industry ard Horse Hair Dressing, 

No. 1 1 

Upholstery and Drapery Textile, No. 1 

Can Manufacturers, No. 1 

Chinaware and Porcelain Manufacturing, No. 4 

(in) 



1-25-35 
1-25-35 
1-26-35 
1-26-35 
1-29-35 
1-29-35 
1-30-35 
1-31-35 
1-31-35 
1-31-35 
1-31-35 
1-31-35 
1-31-35 



1-31-35 
1-31-35 
1-31-35 



2- 1-35 
2- 2-35 
2- 2-35 
2- 4-35 
2- 5-35 
2- 5-35 

2- 6-35 
2- 6-35 
2- 8-35 
2- 8-35 



CONTENTS— Continued 



Industry 



Date 



AMENDMENTS— Continued 

Garter, Suspender and Belt Manufacturing, No. 3 . _ 

Women's Belt, No. 3 

Chinaware and Porcelain Manufacturing, No. 5 

Silk Textile, No. 5 ' 

Marine Auxiliary Machinery, No. 1 

Portable Electric Lamp and Shade, No. 1 (A Division of 

Electrical Manufacturing) 

Baking, No. 4 

Fur ^lanufacturing, No. 2 

Locomotive Appliance, No. 1 (A Division of Machinerv and 

Allied Products) " 

Canvas Stitched Belt Manufacturing, No. 1 

Manganese, No. 1 

Transi)arent Materials Converters, No. 2 

Art Needlework, No. 2 

Drapery and Carpet Hardware Manufacturing, No. 1 (A 
Division of Fabricated Metal Products Manufacturing and 

Metal Finishing and Metal Coating) 

Canning, No. 4 

Investment Bankers, No. 3 

Packaging Machinery Industry and Trade, No. 2 

Sheet Metal Distributing Trade, No. 1 (A Division of Whole- 
saling or Distributing Trade) 

Air Valve, No. 1 

Coffee, No. 2 

Machine Screw Manufacturing, No. 1 (A Divi.jion of Fabricated 
Metal Products Manufacturing and Metal Finishing and 

INIetal Coating) 

Industrial Safety Equipment Industry and Industrial Safety 

Equipment Trade, No. 2 

Washing and Ironing Machine Manufacturing, No. 4 

Job Galvanizing Metal Coating, No. 1 (A Division of Fabri- 
cated Metal Prodiicts Manufacturing and Metal Finishing 

and Metal Coating) 

Air Transjjort, No. 3 

Dress Manufacturing, No. 7 

Investment Bankers, No. 4 

Machine Screw Nut Manufacturing, No. 1 (A Division of 
Fabricated Metal Products Manufacturing and Metal 

I'inishing and Metal Coating) ■ 

Complete Wire and iron Fence, No. 2 (A Division of Fabri- 
cated Metal Products Manufacturing and Metal Finishing 

and Metal Coating) 

Cotton Textile, No. 14 

Dress Manufacturing, No. 8 

Medium and Low Priced Jewelry Manufacturing, No. 2 

Photographic and Photo Finishing, No. 2 

Leather, No. 3 

APPENDICES 

Indu.strial Wire Cloth Manufacturing, No. 5 (A Division of 
Fabricated Meial Products Manufacturing and Metal Finish- 
ing and IMetal Coating) 

Cosnietic Container Manufacturing, No. 6 (A Division of Fab- 
ricated Metal Products Manufacturing and Metal Finishing 
and Metal Coatingj 

Metal Safety Tread Manufacturing, No. 7 (A Division of Fab- 
ricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating) 

(IV) 



2- 8-35 
2- 8-35 
2-11-35 
2-11-35 
2-12-35 

2-12-35 
2-13-35 
2-13-35 

2-13-35 
2-14-35 
2-14-35 
2-14-35 
2-15-35 



2-15-35 
2-16-35 
2-1S-35 
2-18-35 

2-18-35 
2-19-35 
2-19-35 



2-19-35 

2-21-35 
2-21-35 



2-25-35 
2-26-35 
2-26-35 
2-27-35 



2-27-35 



3- 1-35 
3- 2-35 
3- 2-35 
3- 4-35 
3- 4-35 
3- 5-35 



2- 8-35 409 

2-12-35 

2-15-35 



CONTENTS— Continued 



Industry 



Date 



SUPPLEMENTS 



Retail Custom Millinery Trade, No. 3, for Retail Trade 

Radiator Manufacturing, No. 10, for Automotive Parts and 

Equipment Manufacturing 

Mine Car Manufacturing, No. 47, for Machinery and Allied 

Products 

Midwest Fish and Shellfish Preparing or Wholesaling, No. 9, for 

Fishery 



ADMINISTRATIVE ORDERS 

Retail Tobacco Trade, Prices, Further extension of order deter- 
mining basis for fixing minimum 

Wholesale Tobacco Trade, Prices, Further extension of order 
determining basis for fixing minimum 

American Match, Price declines. Stay of provisions relevant to. _ 

Earthenware Manufacturing, Hazardous occupations. Approv- 
ing a list of 

Knitted Outerwear, Contract system of production, Further 
extension of regulations approving 

Restaurant, Amendment, No. 2, Terminating previous stays of 
effective date of 

Baking, Population decision for Little Rock, Arkansas, and 
North Little Rock, Arkansas 

Bituminous Coal, Price schedules and/or changes. Cancellation 
of previous order promulgating rules governing 

Cotton Garment, Terms of sale, Aj^proving stay for Union Made 
Garments of provisions relevant to 

Home work provisions. Application of various code 

Rubber Manufacturing, Post-dating of product shipments, 
Approving stay for Rainwear Division of provisions relevant 



to. 



Coat and Suit, Baltimore Cloak and Suit Association, Exemp- 
tion from Area adjudication for the 

Title Contracting, Trade practice provision, Stay of one 

Rubber Manufacturing, Liability provisions stayed for the 
Mechanical Rubber Goods Division 

Wooden Insulator Pin and Bracket Manufacturing, Hazardous 
occupations. Approving a list of 

Earthenware Manufacturing, Cost finding, Extending approved 
method of 

Road Machinery Manufacturing, Resale value of second-hand 
or old equipment, Approval of regulations defining 

Rubber Manufacturing, Price lists and terms of sale, Stay for 
the Heel and Sole Division relevant to 

Wool Textile, Work Assignment Board delegated to administer 
provisions relevant to hours of labor 

Floor and Wall Clay Tile Manufacturing, Distribution, Stay for 
specified classes of provisions relevant to 

Safety Razor and Safety Razor Blade Manufacturing, Terms of 
sale, Export sales granted stay relevant to provisions applic- 
able to 

Fertilizer, Grades, Partial stay of provisions relevant to 

Knitted Outerwear, Home work, Rules and regulations super- 
seding provisions relevant to 

Retail Trade, Retail Jewelry Trade, Code Authorities, Con- 
firming authority to approve local 

Retail Trade, Retail Jewelry Trade, Retail Food and Grocery 
Trade, Script, Further extension of provisions relevant to 

Wholesale Food and Grocery Trade, Loss limitations provisions, 
Stav extended relevant to 



1-25-35 
2- 1-35 
2- 5-35 
2-20-35 

1-24-35 

1-24-35 
1-25-35 

1-25-35 

1-25-35 

1-25-35 

1-26-35 

1-26-35 

1-26-35 
1-26-35 

1-26-35 

1-28-35 
1-29-35 

1-31-35 

1-31-35 

2- 1-35 

2- 1-35 

2- 1-35 

2- 1-35 

2- 2-35 

2- 2-35 
2- 4-35 

2- 4-35 

2- 4^35 

2- 5-35 

2- 5-35 



(▼) 



CONTENTS— Continued 



Industry 



Date 



Page 



ADMINISTRATIVE ORDERS— Continued 



Ag;ricultural Insecticide and Fungicide, Costs, Determination 
extended for Lead Arsenate and Calcium Arsenate of lowest 
reasonable 

Crufhed Stone, Sand and Gravel, and Slag Industries, Con- 
struction, Hours and wages, Extension of exemption subject 
to compliance with superior provisions applicable to 

Coat and Suit, Wages and Areas, Staying specified parts of 
provisions relevant to 

Importing Trade, Crude Rubber, Staying exemption relevant 
to importers of 

Brattice Cloth Manufacturing, Code Authority, Authorizing 
the Industry to elect its own 

Celluloid Button, Buckle and Novelty Manufacturing, Hours 
of labor, Temporary stay of provisions relevant to 

Marine Equipment Manufacturing, Granting further extension 
of the stay for all code provisions 

Needle Work Industry in Puerto Rico, Piece-work rates. Sup- 
plementing previous order relevant to 

Slate, Credit, Contract Terms and Sales Practices, Approval 
of rules providing for Uniform 

Architectural, Ornamental and Miscellaneous Iron, Bronze, 
Wire anfl ]\Ietal Specialties, Code Authority, Extending term 
of office for the Temporarj- 

Cigar Manufacturing, Hours of labor. Stay of Sunday provi- 
sions relevant to _. 

Sheltered Workshops, Committee, Amending previous orders 
referring to the membership and functions of the 

Wrench Manufacturing, Terms of sales. Partial stay of provi- 
sions relevant to 

Fishery, Wholesale Food and Grocery Trade, Assessments, 
Stay of application of general order relevant to distributing 
trades 

Flat Glass Manufacturing, Hours of labor, Previous stay ter- 
minated 

^'enetian Blind, Hazardous occupations. Approving a list of — 

Cigar Manufacturing, Hours and wages, Temporary stay of 
provisions for bunch makers and rollers engaged in manufac- 
turing two for five cent cigars by hand relevant to, — ex- 
tended further 

Funeral Supply, Code Authority, Approving delegation of au- 
thority to an Executive Committee b\- the 

Business Furniture, Storage Equipment and Filing Supply, 
Steel Shelving Division, Terms of sale. Granting further 
exemption for transactions with governmental agencies 

Cotton Garment, Dressing Manufacturing, Impartial Commis- 
sion created to considor and make recommendations on cer- 
tain applications for exemption 

Garter, Suspender and Bt>lt Manufacturing, Overtime work, 
Men's Belt Branch, Exception relevant to 

Hat Manufacturing, Hours and wages. Granting further stay 
of provisions relevant to 

Medium and Low Priced Jewelry Manufacturing, Contract for 
fraternal orders, Extending previous stay of provisions rele- 
vant to 

Retail Trade, Sale of soap. Rescinding previous exemption rele- 
vant to compliance with provisions applicable to 

Shipbuilding and Shiprepairing, Hours, Partial stay to permit 
emergency work relevant to 

Refrigerated Warehousing, Capacity Control, Extending the 
effective period of provisions relevant to 



2- 6-35 

2- 6-35 
2- 7-35 
2- 7-35 
2- S-35 
2- 8-35 
2- 8-35 
2- 8-35 
2- 8-35 

2- 9-35 599 
2- 9-35 ! 600 
2- 9-35 
2-11-35 

2-12-35 

2-13-35 
2-13-35 

2-14-35 
2-14-35 

2-19-35 

2-19-35 
2-19-35 
2-19-35 

2-19-35 
2-19-35 
2-19-35 
2-20-35 



(VI) 



CONTENTS— Continued 



Industry 



Date 



ADMINISTRATIVE ORDERS=Continued 

Wholesale Monumental Marble, Hazardous occupations, 
Approving a list of 

Aluminum, Trial period, Approving a further 

Athletic Goods Manufacturing, Home work, Partial stay of 
labor provisions relevant to 

Candy Manufacturing, Code Authority, Staying one adminis- 
trative provision applicable to the 

Picture Moulding and Picture Frame, Label regulations. Rules 
for administration of provisions relevant to 

Label provisions covering the use of labels under codes contain- 
ing mandatory 

Lead, Hours, Extension of previous limited stay relevant to 

Budgets for Cede Authorities and submission of bases of con- 
tribution, Regulations requiring approval of 

Cutlery, Manicure Implement and Painters and Paperhangers 
Tool Manufacturing and Assembling, Price provisions, 
Partial stay relevant to 

Women's Neckwear and Scarf Manufacturing, Wages, Stay of 
provisions, relevant to 

Can Manufacturers, Canned Salmon Industry exempted from_. 

Country Grain Elevator, Single assessment rule for participants 
in retail distribution, Exemption relevant to 

Knitted Outerwear, Home work, Extension of rules and regula- 
tions superseding provisions relevant to 

Trucking, Registration Insignia, Registration Forms and certain 
other items concerning Registration, Approval of 

Cotton Garment, Piece rates, Partial stay relevant to 

Chinaware and Porcelain Manufacturing, Trade Practice pro- 
visions applicable to the Vitrified China Branch, Temporary 
stay relevant to 

Commercial Stationery and Office Outfitting Trade, Selling, 
Approval for Open Price Plan of 

Merchant and Custom Tailoring, Hours and peak season, Ap- 
proving determination relevant to 

Wire Rope and Strand Manufacturing, American Petroleum 
Equipment, Selling practices. Equitable adjustments for 

Bituminous Coal and Wholesale Coal, Bituminous Coal Sales, 
Committee established to effect rules relevant to 

Hosier}', Learners, Temporary modification of provisions 
applicable to 

Index 



2-20-35 
2-21-35 

2-21-35 

2-21-35 

2-21-35 

2-25-35 
2-25-35 

2-26-35 

2-26-35 

2-26-35 
2-27-35 

2-27-35 

2-27-35 

2-27-35 
3- 1-35 

3- 2-35 
3- 2-35 
3- 2-35 
3- 2-35 
3- 4-35 
3- 5-35 



620 
621 

622 

623 

624 

626 
632 

633 

634 

635 
636 

637 

638 

639 
640 

641 

642 

644 

645 

647 

649 
651 



(Vll) 



CODES OF FAIR COMPETITION 



Approved Code No. 544 
CODE OF FAIR COMPETITION 

FOR THE 

AUTO REBUILDING AND REFINISHING TRADE 

As Approved on January 24, 1935 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Code of Fair Competition for the Auto Rebuilding and 
Refinishing Trade 

An capplication having been duly made, pursuant to and in full 
compliance Tvith the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1033. for my approval of a Code 
of Fair Competition for the Auto Rebuilding and Refinishing Trade, 
and hearings having been duly held thereon, and the National Indus- 
trial Recovery Board having rendered its report containing an anal- 
ysis of the said Code of Fair Competition, together with its recom- 
mendations and findings with respect thereto, and the National In- 
dustrial Recovery^ Board having found that the said Code of Fair 
Competition complies in all respects with the pertinent provisions 
of Title I of said Act, and that the requirements of Clauses (1) and 
(2) of Sub-Section (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the National Industrial Recovery Board, and do order 
that the said Code of Fair Competition be and it is hereby approved; 
provided, however, that Sections 2 and 3 of Article VII and Rule 14 
of Article VIII be and they are hereby staj-ed pending the further 
order of the National Industrial Recovery Board. 

Franklin D. Roosevelt. 

Approval recommended : 

National Industrial Recovery Board, 
By W. A. Harriman, 

Administrative Officer. 

TiiE White House, 

January 21^^ 1935. 

111037° 1465-lOT 35 (1) 



LETTER OF TRANSJ^HTTAL 

The President, 

The White Hon.se. 
Sir : This is a report on the Code of Fair Competition for the 
Auto Eebiiildinp; and Refinishing Trade as revised after the hearing 
conducted in "Washington on March 14, 1934 and in accordance with 
the provisions of the National Industrial Recovery Act. 

PROVISIONS or THE CODE AS TO HOUES, WAGES AND GENERAL LABOR 

PROVISIONS 

This Code provides for a maximum work week of forty-four 
hours with the followincr exceptions and exemptions: 

(a) Clerical or office employees, who may work two additional 
hours in any two twenty-four hour periods in any thirty day period ; 

(b) "U^atchmen, who may work not in excess of fifty-six hours in 
any seven day period but not over tw^elve hours in any twenty-four 
hour period nor over six days in any seven day period ; 

(c) Employees engaged wholly in outside selling; 

(d) Apprentices (subject to Executive Order No. G750-C) ; 

(e) Persons engaged in a managerial or executive capacity who 
earn regularly thirty-five dollars ])er week or more. 

Owners, managers or other executives shall, when engaged in 
performing any work not of a managerial or executive nature, con- 
form to the maximum hours provided for employees performing 
such work. 

This Code establishes a minimum rate of pay of sixteen dollars 
per week except that no productive employee not " on call " shall 
be paid less than fifty cents per hour. Other exceptions apply to 
productive employees " on call ", apprentices, and handicapped 
persons. 

No person under eighteen years of age shall be employed at opera- 
tions or occupations which are hazardous in nature or dangerous to 
health and no person under sixteen years of age shall be employed 
in any capacity. 

Employees shall have the right to organize and bargain collec- 
tively through representatives of their own choosing and no one 
shall be required as a condition of employment to join any company 
union or refrain from joining a labor organization of his own choos- 
ing. No employee shall be discharged, demoted or otherwise dis- 
criminated against by reason of making a comi)laint or giving evi- 
dence with respect to an alleged violation of this Code. 

IMPORTANCE OF TRADE 

The Auto Rebuilding and Refinishing Trade is nation-wide in 
character, and has steadily increased in members through a period of 
years and, at the present time, consists of approximately eight thou- 

(2) 



sand, with a total annual volume of approximately three hundred 
and ninety million dollars and employs approximately seventy 
thousand individuals. 

Highly skilled craftsmen in painting, upholstering, woodworking, 
metal working and blacksmithing are required in this Trade, the ma- 
jority of whom must serve as apprentices for an extensive period. 
Therefore, it is necessary to employ apprentices in this Trade and 
provisions are made in the Code to conform with Executive Order 
No. 6750-C, issued June 27, 1934. 

FINDINGS 

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

The National Industrial Recovery Board finds that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, includ- 
ing removal of obstructions to the free flow of interstate ancl 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 manage- 
ment under adequate governmental sanctions and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) The Code as approved complies in all respects with the perti- 
nent provisions of said title of said act, including witliout limitation 
subsection (a) of section 3, subsection (a) of section 7, and sub- 
section (b) of section 10 thereof; and that the applicant association 
is a trade association truly representative of the aforesaid trade ; and 
that said association imposes no inequitable restrictions on admis- 
sion to membership therein. 

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

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

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

(f) The Auto Rebuilding and Refinishing Trade normally em- 
ploys approximately seventy thousand emploj^ees and is classified 
by us as a major Industry. 

For these reasons, therefore, the National Industrial Recovery 
Board Recommends the approval of this Code. 
For the National Industrial Recovery Board. 

W. A. Harriman, 
Adjnimstrative Ojflcer. 
January 23, 1935. 



CODE OF FAIR COMPETITION FOR THE AUTO REBUILD- 
ING AND REFINISHING TRADE 

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 Auto Rebuilding and Refinishing Trade, 
and shall be the standards of fair competition for this Trade and 
binding upon every member thereof. 

Article II-^-Definitions 

Section 1. The term "Auto Rebuilding and Refinishing Trade " 
or " Trade " as used herein, is defined to mean and include : 

(a) The rebuilding, refinishing, renovating, reconditioning and/or 
repainting of any motor vehicle body or part thereof (excepting 
commercial vehicle bodies not manufactured by or sold to the manu- 
facturers or assemblers of motor vehicle chassis), including general 
blacksmith work on a motor vehicle chassis incidental to such oper- 
ations, and including inspections to determine the necessity for any 
such operations, and also including the repainting of any motor 
vehicle chassis or part thereof, by way of service to the general 
public for a consideration implied or expressed, and may include 
(but subject solely to the provisions of this Code and not to those 
of the Code of Fair Competition for the Motor Veliicle Maintenance 
Trade) any operation upon the hood, hood sill, fenders, running 
board, shields (front, side and rear aprons), and the radiator shell, 
core and tank; and/or 

(b) The sale of body hardware, body parts and accessories, and 
other parts, by members of this trade incidental to the operations 
set forth in paragraph (a) of this Section; and/or 

(c) The transferring of customers' motor vehicles and/or parts 
thereof by members of this Trade, as herein defined, to and from any 
places which circumstances may require as incidental to any of the 
above mentioned operations. 

The term '' Trade " as used herein includes such related branches 
and/or subdivisions which may from time to time be included under 
the provisions of this Code after such notice and hearing as the 
National Recovery Administration may prescribe. 

Section 2. The term "' motor vehicle " as used herein is defined to 
mean automobiles including: passenger cars, busses, taxi-cabs, 
hearses, ambulances, fire apparatus, commercial vehicles, trucks, and 
truck-tractors, for use on the highways, but exclusive of motorcycles. 

Section 3. The term " member of the trade " as used herein in- 
cludes, but without limitation, any individual, partnership, associa- 

(4) 



tion, corporation or other form of enterprise engaged in the Trade, 
either as an employer or on his or its OAvn behalf. 

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

Section 5. The term '' employer " as used herein includes anyone 
by whom any such employee is compensated or employed. 

Section 6. (a) The term "salesman" as used herein is defined to 
mean and include an employee engaged in the selling and/or pro- 
moting the sale of the products and/or services of this trade, and 
the functions of selling or promoting the sale are hereinafter referred 
to as " selling." 

(b) The activities of selling are divided into two classes: the first 
including those activities requiring the presence of a salesman on or 
in the premises of the member of the trade; and the second requiring 
the presence of the salesman away from the premises of the mem- 
ber of the trade except for the demonstration of the product and/or 
service to be sold or for the making, recording or execution of an 
estimate, order or other document in connection with any sale or 
for the receiving of instructions. For the purposes of this Code 
all time of a salesman occupied in the first class is referred to as 
" inside selling " and all time in the second class as " outside selling." 

Section 7. The tenn " productive employee " as used herein is de- 
fined to mean and include any employee (including an apprentice) 
engaged in any of the operations described in paragraph (a) of Sec- 
tion 1 of this Article. 

Section 8. The term '' apprentice " as used herein, shall mean a 
person of at least sixteen (16) years of age who has entered into a 
written contract with an employer or an association of employers 
and which contract provides for at least two thousand (2000) hours 
of reasonably continuous employment for such person and liis partic- 
ipation in an approved program of training as provided for in 
Article IV, Section 4 of this Code. 

Section 9. The term "Association " as used herein is defined to 
mean the "Auto Rebuilders Association of the United States ", an 
incorporated trade association. 

Section 10. The terms " President " and "Act " as used herein, 
mean respectively, the President of the United States and Title I of 
the National Industrial Recovery Act. The term " National Re- 
covery Administration " as used herein means such person or per- 
sons, board or agencj'', as may from time to time be designated by the 
President, pursuant to Section 2 (b) of the x\ct, to administer tho 
provisions of this Code. 

Aritcle III — Hours 

Section 1. Maxiiiiuni Hours. — No employee shall be permitted to 
work in excess of forty-four (44) hours in any seven (7) day period 
or eight (8) hours in any twenty-four (24) hour period or six (6) 
days in any seven (7) day period, except as herein otherwise 
provided. 

Section 2. Exceptions to Section 1. — (a) A person employed in 
clerical or office work may be permitted to work two (2) additional 



6 

hours in each of, but not more than, two (2) twenty-four (24) hour 
periods in any thirty (30) day period. 

(b) A watehman may be permitted to work not in excess of 
fifty-six (56) hours in any seven (7) day period nor in excess of 
twelve (12) hours in any twenty-four (24) hour period, nor in excess 
of six (6) days in any seven (7) day period. 

Section 3. The provisions of Section 1 of this Article sliall apply 
to salesmen engaged in inside selling in whole or in part. 

Section 4. ExeTnptians to Section 1. — -(a) The provisions of this 
Article respecting hours of employment shall not apply to salesmen 
engaged only in outside selling, nor to apprentices as herein other- 
wise provided by Section 4 of Article IV of this Code, nor to persons 
engaged in a managerial or executive capacity who earn regularly 
thirty-five dollars ($35.00) per week or more except as herein 
otherwise provided by Section 6 of this Article. 

Section 5. (a) An employee shall be deemed to be continuously 
in the employ of his employer during all periods of time his employer 
requires him to be " on call " or to be " available " waiting for the 
performance of specific work. 

(b) Employment "on call" or "available" waiting for tlie per- 
formance of specific work is not to be construed as affecting the 
classification or occupation of an emploA^ee. 

Section 6. Members of the trade, themselves, shall not work, 
nor permit their executives or managers to work, when engaged 
in performing any work not of a managerial or executive nature, 
in excess of the maximum hours herein prescribed for other employ- 
ees performing such work. 

Section 7. No employer shall knowingly permit any employee to 
work for any time which, when added to time spent at work for 
another employer or employers, exceeds the maximum permitted 
herein. 

Section 8. No employer shall permit any employee, engaged in 
performing work of more than one classification or occupation, to 
work for any time in excess of the least of the maximum number 
of hours prescribed herein for such classifications or occupations. 

Section 9. For the purposes of calculating tlie time in any twenty- 
four (24) hour period for which wages are due and payable and for 
calculating the maximum hours, the time of employment shall be 
reckoned continuously from the starting time in any such twenty- 
four (24) hour period except for a meal-time period of not more 
tlian one (1) hour. 

Article IV — Wages 

Section 1. Minimum Wage. — No employee shall be paid less than 
at the rate of Sixteen Dollars ($1G.00) per week, except as herein 
otherwise provided. 

Section 2. MiniTiiwrn Wage for Productive Employees. — No pro- 
ductive employee (except as herein otherwise provided by Sections 
3 and 4 of this Article) shall be paid at less than the rate of fifty 
cents ($0.50) per hour. 

Section 3. Minimum wage for time of employees " oifi call " or, 
" available.^' — No employee shall be paid for less than foui' (4) hourg' 
work at his regular rate of pay, for his classification or occupation, 



for the first four (4) hours, or any part thereof, that he is " on call " 
or " available " waiting for the performance of specific work in each 
twenty-four (24) hour period; nor less than one-half (1/2) his 
hourly rate of pay, for his classification or occupation, for all time 
" on call " or " available " waiting for the performance of specitic 
work, in excess of four (4) hours in each twenty-four (24) hour 
period; provided, however, that in no event shall such latter "on 
call " or '• available " rate be less than thirty-six cents ($0.36) per 
hour. 

Sectiox 4. Wages for Apprentices. — Subject to such rules and 
regulations as may be issued or prescribed pursuant to the Act, 
including but without limitation, Executive Order No. 6T50-C, issued 
June 27, 1934, and subject to the provisions of Section 1 of Article Y, 
each employer may employ apprentices ; provided, however, that for 
the first period of indenture no apprentice shall be paid at less than 
thirty per cent (30%) of the minimum rate for other productive 
employees in the trade or occupation in which the apprentice is 
indentured, and in no event at less than the rate of tw^enty-five cents 
($0.25) per hour; and provided, further, that at no time shall the 
number of such apprentices employed by any one employer exceed 
the ratio of one (1) apprentice to each five (5) other productive 
employees employed by such employer in the trade or occupation for 
which the apprentice is indentured. The rates of wages to be paid 
to apprentices during other periods of apprenticeship shall be in 
accordance with the contract or indenture which in no event shall 
provide for a rate, during the last period of indenture, less than 
eighty per cent (80%) of the minimum rate of other productive 
employees in the trade or occupation in which the apprentice is 
indentured. Each employer shall, within thirty (30) daj^s after the 
constitution and organization of the Code Authority, file a certified 
copy of each apprenticeship indenture for each apprentice in his 
employ and, thereafter, shall likewise file similar documents within 
thirty (30) days after the employment of any other apprentice. 

Section 5. Employees engaged in performing work of more than 
one classification or occupation shall be paid for all time during any 
twenty-four (24) hour period at not less than the highest of the 
minimum rates prescribed for such classifications or occupations in 
which such employee is engaged. 

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

Section T. This Code provides for rates of pay which shall apply 
irrespective of whether an employee is compensated on a time rate, 
piecework, commission or other basis. 

Section 8. A person whose earning capacity is limited because of 
age, physical or mental handicap, or other infirmity, may be em- 
ployed on light work at a wage below the minimum establislied by 
this Code if the employer obtains from the State authority designated 
by the United States Department of Labor a certificate authorizing 
his employment at such wages and for such hours as shall be stated 
in the certificate. Each employer shall file monthly with the Code 
Authority a list of all such persons employed by him, showing the 
wages paid to, and the maximum hours of work for, such employee. 

111037 " 1465-107 35 2 



8 

Section 9. Each member of the trade e-hall make payment for all 
wages and/or other form of compensation due, in lawful currency 
or oy negotiable check, payable on demand. Wages and/or other 
form of compensation shall be due and payable at the end of each 
pay period, at least at semi-monthly intervals. 

Sectiox 10. Upon the effective date hereof each employer shall 
promptly adjust the schedule of wages of his employees in such an 
equitable manner as will conform to the provisions hereinabove set 
forth and still preserve wage differentials reasonably proportionate 
to those in effect prior to the effective date of this Code. All em- 
ployers shall file with the Code Authority, within ninety (90) days 
after the effective date of this Code, complete reports setting forth 
wage and hour adjustments of all employees. Such reports shall 
be available to the National Recovery Administration. 

Section 11. In no event, in effecting the adjustments made neces- 
sary by this Code, shall rates of pay be reduced, irrespective of 
whether compensation is actually paid on an hourly, weekly or 
other basis, nor shall any wages be at less than the minimum rates 
provided in this Code. 

Article V — General Labor Provisions 

Section 1. No person under eighteen (18) years of age shall be 
employed in the trade at operations or occupations which are hazard- 
ous in nature or dangerous to health. No person under sixteen (16) 
years of age shall be employed in the trade in any capacity. In any 
State any employer shall be deemed to have complied with this 
provision as to age if he shall have on file a certificate or permit 
duly signed by the Authority in such State empowered to issue 
employment or age certificates or permits showing that the employee 
is of the required age. Within ninety (90) daj's after effective date 
of this Code, the Code Authority shall submit to the National Re- 
covery Administration a list of such operations or occupations in 
the trade which are hazardous in nature or dangerous to health. 

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

(b) No employee and no one seeking employment shall be 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 shoosing, and 

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

Section 3. No 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 make reasonable provisions for 
the safety and health of his employees at the place and during the 



9 

hours of their employment. Standards for safety and health shall 
be submitted by the Code Authority to the National Recovery Admin- 
istration for approval within three (3) months after the effective 
date of this Code. The standards approved shall thereafter be a 
part of this Code and binding as such. 

Section 5. No provision of 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 and/or any amendments thereto in conspicuous places acces- 
sible to all employees. Every member of the trade shall comply with 
all rules and regulations relative to tlie posting of provisions of 
Codes of Fair Competition which may from time to time be i^re- 
scribed by the National Recovery Administration. 

Section 7. 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. 

Akticle VI — Organization, Powers and Duties of the Code 

Authority 

a. organization 

Section 1. A Code Authority is hereby established. 
Section 2. The Code Authority shall consist of nine (0) trade 
members, to be selected in the following manner : 

(a) The members of the trade shall elect the trade members of the 
Code Authority by a majority vote of the members of the trade 
participating in the election. 

(b) Each member of the trade shall have equal voting rights. 

(c) As many as, but not exceeding, two (2) of the trade members 
of the Code Authority shall be selected from members of the trade 
who are not members of the Association, and who are eligible as pro- 
vided by Section 12 (i) of this Article, if any, and who will serve. 
The complement of the trade members of the Code Authority shall 
be selected from members of the trade who are members of the Asso- 
ciation, who are likewise eligible as provided b}^ Section 12 (i) of 
this Article and who will likewise serve. 

(d) The trade members of the Code Authority shall be elected to 
serve for terms not to exceed one (1) year. 

(e) In the event of any vacancy in the membership of the trade 
members of the Code Authority, due notice shall be given and an 
election held within thirty (30) days after such vacancy shall have 
occurred to fill the incomplete term of such membership. 

(f ) Notice of the time and place of each election shall be sent to all 
known and ascertainable members of the trade and to the National 
Recovery Administration at least twenty (20) days in advance of 
each election. 

(g) Voting at any election may be in person, by proxy or by letter 
ballot. 

Section 3. At no time shall the Code Authority include more 
than one (1) member affiliated or associated with or employed by 



10 

the same member of the trade and at no time shall the Code Author- 
ity include more than one (1) member selected from members of the 
trade who hare a financial interest in or otiierwise exercise control 
over each other. 

Section 4. The Association is hereby desigiiated as an agency to 
conduct the election of the first Code Authority within forty-five (45) 
daj^s after the effective date of this Code. 

Sectiox 5. — (a) The National Recovery Administration may make 
such temporary appointPiients of Trade INiembers to the Code Author- 
ity as may be necessary; or in the case of, and for the period of, any 
vacancy on the Code Authority. 

(b) The National Recovery Administration may make such tem- 
porary appointments of Trade Members to act as a Temporary Code 
Authority, with all the powers and duties as are herein prescribed 
for the Code Authority and to serve until such time as the first Code 
Authorit}' is dulv constituted and organized, as provided by this 
Code. 

Section 6. In addition to the membership as hereinbefore pro- 
vided, there may be not more than three (3) members, without vote 
and without expense to the trade, to be known as Administration 
Members, to be appointed by the National Recovery Administration 
to serve for such terms as it may specify. The representatives who 
may be appointed by the National Recovery Administration, together 
with the National Recovery Administration, shall be given notice 
of and may sit at all meetings of the Code Authority. 

Section 7. No member of the Code Authority shall be permitted 
to act as a member of the Code Authority or any agency or committee 
under this Code in an}' matter involving a violation or an alleged vio- 
lation by, or a complaint against, a member of the trade by which 
he is employed or with which he is associated or affiliated. 

Section 8. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Authority 
shall (1) impose no inequitable restrictions on membership, and (2) 
submit to the National Recovery Administration true copies of its 
articles of association, by-laws, regulations, and any amendments 
when made thereto, together Avith such other information as to mem- 
bership, organization, and activities as the National Recovery Ad- 
ministration may deem necessary to effectuate the purposes of the 
Act. 

Section 9. In order that the Code Authority shall at all times be 
truly representative of tJie trade and in other respects comply with 
the provisions of the Act, the National Recovery Administration may 
prescribe such hearings as it may deem proper; and thereafter, if it 
shall find that the Code Authorit}' 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 10. Nothing contained in this Code shall constitute the 
members of the Code Authority, or of any state, regional or district 
agency of the Code Authority, partners for any purpose. Nor shall 
any such member be liable in any manner to anyone for any act of 
any other member, officer, agent or employee of the Code Authority, 
or of any such agency of the Code Authority. Nor shall any member 
of the Code Authority, or of any such agency, exercising reasonable 



11 

diligence in the conduct of liis duties hereunder, be liable to anyone 
for any action or omission to act under this Code, except for his own 
wilfull malfeasance or nonfeasance. 

Section 11. If the National Recovery Administration 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 
National Recovery Administration may require tliat such action be 
suspended to afford an opportunity for investigation of the merits of 
such action and further consideration by such Code Authority or 
agency pending final action which shall not be effective unless the 
National Recovery Administration approves or unless it shall fail 
to disaj^prove after thirty (30) days' notice to it of intention to pro- 
ceed with such action in its original or modified form. 

B. PO^VERS AJ^ID DUTIES 

Section 12. Subject to such rules and regulations as may be issued 
by the National Recovery Administration, the Code Authority shall 
have the following powers and duties, in addition to those authorized 
by other provisions of this Code : 

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

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

(c) To obtain from members of the trade such information and 
reports as are required for the administration of the Code. In addi- 
tion to information required to be submitted to the Code Authority, 
members of the trade subject to this Code shall furnish such statisti- 
cal information as the National Recovery Administration may deem 
necessary for the purposes recited in Section 3 (a) of the Act to such 
Federal and State agencies as it may designate ; provided that noth- 
ing in this Code shall relieve any member of the trade of any existing 
obligations to furnish reports to any Government agency. No indi- 
vidual report shall be disclosed to any other member of the trade or 
any other party, except to such other Governmental agencies as may 
be directed by the National Recovery Administration. 

(d) To use any trade association or other agency as it deems 
proper for the carrying out of any of its activities; 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 pro- 
visions thereof. 

(e) To make recommendations to the National Recovery Admin- 
istration for the coordination of the administration of this Code 
with such other codes, if any, as may be related to or affect members 
of the trade. 

(f) To cooperate with the National Recovery Adminisiration in 
regulating the use of any N. R. A. insignia. 

(g) To recommend to the National Recovery Administration 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 plan- 
ning, and stabilization of employment, and including modifications 



12 

of this Code which shall become effective as part hereof upon ap- 
proval by the National Recovery Administration after such notice 
and hearing as it ma}' 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 trade for the purpose of formulating 
fair trade practices to govern the relationships between employers 
under this Code and under other codes to the end that such fair 
trade practices may be proposed to the National Recovery Admin- 
istration as amendments to this Code and such other codes. 

(i) 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 National Recovery Administration for its 
approval, subject to such notice and opportunity to be heard as it 
may deem necessary (1) an itemized budget of its estimated ex- 
penses for the foregoing purposes, and (2) an equitable basis upon 
which the funds necessary to support such budget shall be contrib- 
uted by members of the trade ; 

(c) After such budget and basis of contribution have been ap- 
proved by the National Recovery Administration, to determine 
and obtain equitable contribution as above set forth by all mem- 
bers 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 National Recover}' Adminis- 
tration. 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 
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 
National Recovery Administration ; and no subsequent budget shall 
contain any deficiency item for expenditures in excess of prior 
budget estimates except those which the National Recovery Admin- 
istration shall have so approved. 

(j) To prepare, and submit to the National Recovery Adminis- 
tration, a plan or plans for the establisliment of state, regional or 
other districts for the further administration of this Code in such 
areas. 



13 

(k) To prepare and submit to the National Eecovery Adminis- 
tration within ninety (90) days after the effective date of this 
Code, a plan or plans for the appointment or selection of any State, 
Regional or other Committees aiid their Chairmen. 

(1) To provide for the appointment or the selection of any other 
regional, districl or other committee for the further administra- 
tion of this Code. 

(m) To employ such agents and employees as it may deem nec- 
essary for the administration of this Code. 

(n) To delegate, subject to the limitations as provided herein by 
paragraph (d) of this Section, such of its powers and duties to 
such State, Regional or other Committees as it may deem appro- 
priate for the further administration of this Code and to suspend 
and/or cancel any such delegated powers or duties at any time. 

(o) To provide appropriate facilities for arbitration, and, sub- 
ject to the approval of the National Recovery Administration, to 
prescribe rules of procedure and rules to effect compliance with 
awards and determinations. 

Section 13. Any interested party shall have the right to appeal 
to the National Recovery Administration from any decision, act or 
omisison to act, of the Code Authority or any of its agencies. 

Article VII ^ — Cost Finding and Accounting 

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

Section 1 (a). The Code Authority shall cause to be formulated 
methods of cost finding and accounting capable of use by all mem- 
bers of the trade, and shall submit such methods to the National 
Recovery Administration for review. If approved by the National 
Recovery Administration, full information concernmg such methods 
shall be made available to all members of the trade. Thereafter, 
each member of the trade shall utilize such methods to the extent 
found practicable. Nothing herein contained shall be construed to 
permit the Code Authority, or any agent thereof, or any member of 
the trade, to suggest uniform additions, percentages or differentials 
or other uniform items of cost which are designed to bring about 
arbitrary uniformity of costs or prices. 

costs and price cutting 

Section 2. Wilfully destructive price cutting is an unfair method 
of competition and is forbidden. Any member of the trade or of 
any other trade or the customers of either may at any time complain 
to the Code Authority that any offered price constitutes unfair com- 
petition 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 five (5) days afford 
an opportunity to the member offering such price to answer such 
complaint and shall within fourteen (14) days make a ruling or ad- 
justment thereon. If such ruling is not concurred in by either party 
to the complaint, all papers shall be referred to the Research and 



' See paragraph 2 of order approving this Code. 



14 

Planning Division of X. R. A., which shall render a report and rec- 
ommendation thereon to the National Recovery Administration. 

(a) AVhen no declared emergency exists as to any given product, 
there is to be no fixed mininmm 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. 

(b) AVhen an emergency exists as to any given product or service, 
sale below the stated minimum price of such product or service, in 
violation of Section 3 hereof, is forbidden. 

EMERGENCY PROVISIONS 

Section 3. If the National Recovery Administration, after investi- 
gation, shall at any time find both (1) that an emergency has arisen 
within the trade adversely affecting small enterprises or wages or 
labor conditions, or tending toward monopoly or other acute con- 
ditions which tend to defeat the purposes of the Act; and (2) that 
the determination of the stated minimum price for a specified prod- 
uct or service within the trade for a limited period is necessary 
to mitigate the conditions constituting such emergency and to effec- 
tuate the purposes of the Act, the Code Authority may cause an 
impartial, agency to investigate costs and to recommend to the 
National Recovery Administration a determination of the stated 
minimum price of the product or service affected by the emergency, 
and thereupon the National Recovery Administration may proceed to 
determine such stated minimum price. 

(a) AVhen the National Recovery Administration shall have de- 
termined such stated minimum price for a specified product or serv- 
ice 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, it shall publish 
such price. Thereafter, during such stated period, no member of 
the trade shall sell such specified products or services at a net real- 
ized price below said stated minimum price and any such sale shall 
be deemed destructive price cutting. From time to time, the Code 
Authority may reconmiend review or reconsideration or the National 
Recovery Administration may cause any determinations hereunder 
to be reviewed or reconsidered and appropriate action taken. 

Section 4. No member of the trade shall enter into au agreement, 
understanding, combination or conspiracy to fix or maintain price 
terms, nor cause or attempt to cause any member of the trade to 
change his price terms by the use of intimidation, coercion, or any 
other influence inconsistent with the maintenance of a free and open 
market. For the purposes of this Code the term " price terms " shall, 
but without limitation, be defined to mean and include all prices, 
discounts, rebates, allowances and all other terms or conditions of 
sale. 

Article VIII — Trade Practice Rules 

Rule 1. No member of the trade shall publish advertising (whether 
printed, radio, display, or of any other nature) which is misleading 
or inaccurate in any material particular nor shall any member in 



15 

any way misrepresent any goods or services (including, but without 
limitation, their use, trade-mark, grade, quality, quantity, origin, 
size, substance, character, nat^ire, finish, material, content, or prepa- 
ration thereof) or credit terms, value, policies, or the nature or 
form of the business conducted. 

Rule 2. No member of the trade shall knowingly post-date or pre- 
date any contract, invoice, quotation or receipt ; knowingly withhold 
from or insert in any contract, invoice, quotation or receipt any 
statement which makes such contract, invoice, quotation or receipt 
a misleading or inaccurate statement in any material particular; or 
accept or offer to accept any such contract for the purpose of and 
with the effect of injuring the business of a competitor or of violat- 
ing or evading the provisions of this Code. 

Rule 3. No member of the trade shall publish or circulate unjusti- 
fied or unwarranted threats of legal proceedings which tend to, or 
have the effect of, harassing competitors or intimidating their 
customers. 

RuT.E 4. No member of the trade shall defame a competitor by 
falsely imputing to him dishonorable conduct, inability to perform 
contracts, questionable credit standing, or by other false representa- 
tions, or by falsel}^ disparaging the grade or quality of his goods 
and/or services. 

Rule 5. No member of the trade shall give, permit to be given 
or offer to give, money or any other thing of value for the purpose 
of influencing or rewarding the action of any employee, agent, or 
representative of another in relation to the business of the employer 
of such employee, the principal of such agent or the represented 
party, without the knowledge of such employer, principal or party. 
This provision shall not be construed to prohibit free and general 
distribution of articles commonly used for advertising, except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

Rule 6. No member of the trade shall attempt to induce the breech 
of an existing contract between a competitor and his customer or 
source of supply ; nor interfere with or obstruct the performance of 
such contractual duties or services. 

Rule 7. No member of the trade 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 trade offer or extend to any 
customer any special service or privilege not extended to all cus- 
tomers of the same class, for the purpose of influencing a sale. 

Rule 8. No member of the trade shall offer or give prizes, pre- 
miums or gifts of any nature, including the products or services of 
this trade or any other trade or industry, in connection with the 
sale of the products and/or services of this trade, or as an induce- 
ment thereto (unless such prizes, premiums or gifts are offered or 
given to all buyers or potential buyers of the same class) ; or by any 
scheme which involves lottery, misrepresentation or fraud. 

Rule 9. No member of the trade shall fail to include a complete, 
accurate and itemized list of all materials, parts or services and the 
selling ]3rices thereof in either the contract, invoice, quotation or 



16 

receipt coverinfj any sale or offer of sale thereof. All new and/or 
second-hand materials and/or parts shall be so desii^nated. 

Ilrr.E 10. Xo member of the trade shall fail to render an invoice 
or bill for each sale of tlie products or services of this trade. 

Rule 11. No member of the trade shall combine, in quotations or 
contracts for the sale of the products or services of this trade, a 
quotation or a contract for the sale of the products or services of any 
other trade or industry, for the purpose or with the effect of con- 
cealing the true sollinij prices of the products or services of this 
trade. 

Rule 12. No member of the trade shall coerce or otherwise con- 
strain an emplo^yee to purchase or oblifrate himself, directly or in- 
directl}', to purchase stocks, bonds, securities or other forms of own- 
ership, mortgage, or indebtedness in its enter])rise or in any other 
enterprise or to make an}'^ other purchase or obligation. 

RuiiE 13. No member of the trade shall require that the purchase, 
sale or lease of any product or service of this trade or of any other 
trade or industry, shall be a requisite or a prerequisite to the pur- 
chase, sale or lease of the products or services of this trade. 

Rule 14. No member of the trade shall recall or revise or offer 
to recall or revise any written quotation, proposal or bid submitted 
to a buyer or potential buyer of any products or services of this 
trade, for the purpose of submitting more favorable price terms, 
unless the buyer has proposed a revision in the quantity and/or 
quality of the products and/or services to be purchased.^ 

Rule 15. No member of the trade shall furnish any product or 
service of this trade to any person (except to charity), except for 
such consideration, expressed or implied, as may be included by a 
quotation, contract, guarantee, warranty or other agreement cover- 
ing such product or service, except as herein otherwise provided by 
Rule 8. 

Rule 16. No member of the trade shall fail to keep a complete, 
accurate and itemized record of all wages, salaries, commissions, 
drawing accounts or other allowances or credits paid to all 
employees, including salesmen and agents. 

Article IX — General 

SEcnoN 1. No provisions of this Code shall be so applied as to 
permit monopolies or monopolistic practices, or to eliminate, oppress, 
or discriminate against small enterprises. 

Section 2. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of subsection (b) of Section 10 of the Act, from time to 
time to cancel or modify any order, approval, license, rule or regu- 
lation issued under Title I of said Act and specifically, but without 
limitation, to the right of the President to cancel or modify his 
ap[)roval of this Code or any conditions imposed by him upon his 
approval thereof. 

Section 3. Such of the provisions of this Code as are not required 
to be included therein by the Act may, with the approval of the 



2 See paragraph 2 of order approving this Code. 



17 

President, be modified or eliminated as changes in circumstances or 
experience may indicate. It is contemplated that from time to time 
supplementary provisions of this Code, or additional codes, will be 
submitted for approval of the President to prevent unfair competi- 
tion and other unfair destructive competitive practices and to effectu- 
ate the other purposes and policies of Title I of the Act. 

Section 4. This Code shall become effective on the second Monday 
after its approval by the President. 



Approved Code No. 544. 
Registry No. 1405-11. 



o 



Approved Code No. 545 

CODE OF FAIR COMPETITION 

FOR THE 

NATURAL ORGANIC PRODUCTS INDUSTRY 

As Approved on January 25, 1935 



ORDER 



Approving Code of Fair Competition for the jnatural Organic 

Products Industry 

An application having- been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the National Organic Products 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise ; 
does hereby incorporate by reference said annexed report and does 
find that said Code complies in all respects with the pertinent pro- 
visions and will promote the policy and purposes of said Title of 
said Act; and does hereby order tliat said Code of Fair Competi- 
tion be and it is hereby approved ; provided, however, that the Code 
Authority shall obtain from members of the Industry and submit 
to the National Industrial Recovery Board at its request such labor 
statistics as said Board may deem necessary for determining the 
adequacy of the labor provisions of this Code and within four 
months from the effective date of this Code said Board shall conduct 
such hearings as it deems necessary to effectuate changes in said 
labor provisions of said Code and that any order the said Board 
may make as a result of such hearings, data and information shall 
have the effect of a condition on the approval of this Code. 

National Industrial Reco\'ery Board, 
By W. A. Haeriman, Administrative 0-fficer, 

Approval recommended : 
Joseph F. Battlet, 

D I vision Adtninistrator. 

AVasiiington, D. C, 

January 25, 1935. 

111343° 1465-112 35 (19) 



REPORT TO THE PRESIDENT 

The President, 

TJie White House. 

Sir: This is a report on the Hearini^ on the Code of Fair Com- 
petition for the Natural Organic Products Industry, hehl on April 
20, 1934. The Code, which is attached, was presented by duly quali- 
fied and authorized representatives of the Industry, complying with 
statutory requirements and claiming to represent ninety percent, by 
volume, of the Industry. 

In accordance with the customary procedure every person who had 
filed a request for appearance was freely heard in public, and regu- 
latory requirements were complied wnth. 

THE INDUSTRY 

The Industry is divided into five divisions: The Botanical Drug 
Industiy, the Essential Oil Industry, the Spirit and Oil Soluble 
Gum Industry, the "Water Soluble Gum Industry, and the Vanilla 
Bean Industry. The Industry as a whole comprises about 170 
establishments. 

There are no figures available as to the capital investment in 
this Industrv, but the volume of business in 1929 was about $50,000.- 
000 and declined to about $25,000,000 in 1933. The Industry em- 
ploved 1,958 persons in 1929. This number fell to 1,852 in 1930 and 
fell further to 1,736 in 1931, but rose sharply to 1,916 in 1932. 

The five small industries comprising the Natural Organic Products 
Industry originally approached the National Recovery Administra- 
tion separately, asking for separate Codes. Since it was found that 
they had common problems and overlapping functions they were 
a.sked to combine under one basic Code; a new trade association was 
formed to sponsor this Code, admitting members of all five industries. 
Since these industries were thus combined for the first time in their 
existence and since they were composed of many small and scattered 
units it was found difficult to obtain accurate and complete statistics 
and information covering the new Industry thus formed, aiid a clear 
picture of conditions within it was not obtainable. 

PROVISIONS or THE CODE 

The Code provides for a basic forty (40) hour week and a thirty- 
five (35) cent minimum wage. The meagre statistics which are avail- 
able tend to indicate that this will promote little if any re-employ- 
ment or increased purchasing power in this Industry. 

The hour, wage, general labor, and administration provisions in 
the Code are connnon to all five divisions of this Industry. In addi- 

(20) 



21 

tion, each division has a separate schedule of trade practice rules 
to be administered b}^ its Divisional Code Council. The Schedules, 
with minor differences, are identical antl render enforceable under the 
Code certain basic rules of fair trade practice which have been fol- 
lowed bv the majority of the Industry in the past. 

FINDINGS 

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

The Board finds that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of inter-state and foreign 
commerce which tend to diminish the amount thereof and will 
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 supervi- 
sion, by eliminating unfair competitive practice, by promoting the 
fullest possible utilization of the present production capacity of 
industries, by avoiding undue restriction of production (except as 
may be temporaril}^ required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, b}^ reducing and relieving unemployment, by improving 
standards of labor, and b}^ otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees ; and is not classified 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 restric- 
tions on admission to membership therein. 

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

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

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

For these reasons, this Code of Fair Competition for the Natural 
Oi'ganic Products Industry has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Ojficer. 
January 25, 1935. 



CODE OF FAIR COMPETITION FOR THE NATURAL 
ORGANIC PRODUCTS INDUSTRY 

Article I — Pckposes 

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

Article II — Definitigns 

Section 1. The term " Natural Organic Products Industry " or 
" Industr}^ " as used herein includes the following industries and such 
related branches or subdivisions thereof and such allied industries 
as may from time to time be included under the provisions of this 
Code:' 

(a) The Botanical Dnig Industry. — The term "Botanical Drug 
Industry " as used herein includes the merchandising and/or import- 
ing and/or processing either as merchants or as custom millers, or 
as both, of botanical drugs and allied commodities. 

(b) The Essential Oil InduHtry. — The term " Essential Oil Indus- 
try " as used herein includes the manufacture and/or redistillation 
and/or merchandising and/or importing and/or packaging and dis- 
tributing of essential oils, floral products, animal fixatives, natural 
ethers and aldehydes, balsams and aromatic gums, fruit and other 
flavors for re-manufacturing purposes, natural aromatic products, 
oleo resins and allied natural products and mixtures of the above- 
named products and other aromatic chemicals known as " special- 
ties " or '' compounds " ; and includes the importation for resale of 
synthetic aromatic chemicals, but does not include the manufacture 
or sale b}' the producer of synthetic aromatic cliemicals. 

(c) The Spint and Oil Soluble Gum Industry. — The term " Spirit 
and Oil Soluble (xum Industry" as used herein includes the import- 
ing and merchandising of spirit and oil-soluble natural resins, ex- 
cept shellac and naval stores, used in the manufacture of paint, 
varnisli. lacquer, and miscellaneous other products requiring natural 
resins. 

(d) The ^yaier Soluhle Gum I ndus-fjy.— The term '"Water Sol- 
uble Gum Industry " as used herein includes the inipoi'ting and mer- 
chandising and/or processing, either as merchants or as custom 
millers, or as both, of water-soluble gums and allied commodities. 

(e) The Vanilla Bean Industry. — The term "Vanilla Bean In- 
dustry " as used herein includes the importing, merchandising and 
distributing of tonka and vanilla beans. 

(22) 



23 

Section 2. (a) The term "member of the Industr}^ " as used 
herein includes, but without limitation, any individual, partnership, 
association, corporation or other form of enterprise engaged in the 
Industry, either as an employer or on his or its own behalf; but 
does not include any person whose principal line of business is whole- 
saling or retailing under the operation of anj' wholesale or retail 
code unless such person imports for resale, and/or purchases for re- 
sale from the primary source of raw materials, and/or performs any 
processing or packaging operation upon any of the products of this 
Industry or an}^ of its branches. 

(b) Tlie term '' person "' as used herein includes, but without lim- 
itation, a natural person, or any partnership, association, corpora- 
tion or other form of enterprise, or any government, governmental 
subdivision or agency thereof. 

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

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

Section 5. The terms " President '', "Act ", and " Board " as used 
herein mean, respectively, the President of the United States, Title 
I of the National Industrial Recovery Act, and the National Indus- 
trial Recovery Board. 

Section 6. The term " establishment " as used herein means any 
plant, laboratory, or office or any branch thereof in which any of 
the activities included in this Industry are carried on. 

Section 7. The term "Association " as used herein means the Nat- 
ural Organic Products Association. 

Section 8. Definitions of Personn-el. — (a) The term "executive" 
as used herein means an employee solely responsible for the manage- 
ment of a business or a recognized subdivision thereof. 

(b) The term " outside salesman " as used herein means a sales- 
man who is engaged not more than fifteen (15) hours per week 
inside the establishment or any branch thereof by which he is 
employed. 

(c) The term " watchman " as used herein shall mean an employee 
engaged primarily in safeguarding the premises and property olE a 
member of the Industry. 

Section 9. The term " continuous process '" as used herein means 
a process which once begun, cannot be interrupted until complete 
without spoiling the goods processed or rendering the work done 
valueless; and which must be attended throughout by the same indi- 
vidual or individuals; and which cannot be begun at a sufficiently 
early hour to allow of its completion within the eight-hour shift in 
which it is begun. 

Article III — Hours 

Section 1 (a) No employee except as provided below shall be 
permitted to work more than forty (40) hours in any calendar week 
nor more than eight (8) hours in any twenty-four (24) hour period 
except that during any eight (8) weeks in one year employees may 
be permitted to work not in excess of forty-eight (48) hours per 



24 

•week. proTided that all hours worked in excess of forty (40) in any 
one week or eight (8) in any twenty-four ('24) hour period are 
compensated at one and one-third (1^^) times the regular rate of 
pay. 

(b) Tlie provisions of Subsection (a) of this Section shall not 
apply to executives, supervisory employees, and scientific employees 
■who are paid $35.00 or more per week, nor to outside salesmen and 
commission salesmen. 

(c) AVatchmen may work not in excess of fifty-six (56) hours in 
any one week j^rovided they shall have one fuU day off in each seven 
(7) day period. 

(d) Employees whoso work on continuous process requires it, may 
be permitted to work not in excess of twelve (12) hours in any 
twenty-four (24) hour period, and not in excess of forty (40) hours 
in any one week. 

(e) In case of an epidemic, catastrophe, or any emergency involv- 
ing breakdowns, or protection of life or property, such employees as 
are necessarj' may be permitted to work unlimited oveitime, provided 
that sucli employee shall be paid at the rate of at least time and one- 
third (1^0 foi* ^^^ hours worked in excess of the applicable maxi- 
mum number of hours provided in Sub-sections (a), (c), and (d) of 
this Section. A report of each such emergency shall be sent to the 
Code Authority within thirty (30) days after such emergency over- 
time work shall have commenced, giving such details as the Code 
Authority may prescribe. 

Section 2. No employer shall knowingly permit any employee to 
work for any time which when totalled with that already performed 
with another emplo3'er or employers in this or any other industry or 
trade exceeds the maxima permitted herein for such employee's 
class of work. 

Sectiox 3. Employers who personally perform manual work or 
engage in mechanical operations shall not work longer than the maxi- 
mum permitted herein for such class of work. 

Article IV — Wages 

Sectiox 1. No emploj^ee shall be paid less than at the rate of 
thirty-five cents (35^^) per hour, except as herein otherwise provided. 

Section 2. No hourly, daily or full time w^eekly compensation for 
emploj'ees who are paid less than $50.00 per Aveek shall be less than 
such compensation existing as of June 16, 1933; and no employee 
shall be paid a wage rate which will yield a less wage for the shorter 
full time week herein established than he could have earned for the 
same class of work for the longer full time week existing as of June 
16, 1933. "Wage increases established under the Presiclent's Reem- 
ployment Agreement shall at least be maintained. 

Section 3. No employer or his agent shall accept any rebate on 
wages directly or indirectly, or give anything of value or extend 
favors to any person for the purpose of influencing rates of wages 
or the working conditions of his employees. 

Section 4. No employee shall be discharged and reemployed at a 
lower rate. 

Section 5. A person whose earning capacity is limited because of 
age, physical or mental handicap, or other infirmity, may be em- 



25 

ployed on li^lit work at a wa^je 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 issuing 
certificates to such persons. Each employer shall file monthly with 
the Code Authority a list of all such persons employed by him show- 
ing the wages paid to, and the maximum hours of work for such 
employees, 

Sectiox 6. This Article establishes a minimum rate of pay which 
shall apply irrespective of whether an employee is actually compen- 
sated on a time-rate, piece-work, or other basis. 

Section 7. No employer shall reclassify employees or duties of oc- 
cupations performed or engage in any other subterfuge so as to defeat 
the purposes and provisions of the Act or of this Code. 

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

Section 9. "Wages shall be paid at least twice per month in lawful 
currency, or by negotiable check payable on demand. 

Section 10. Wages shall be exempt from all fines or deductions and 
from all payments for pensions, insurance or sick benefits other than 
those voluntarily paid b}^ employees or required by law. 

Article V — General Labor PR0^^:sI0NS 

Section 1. No person under sixteen (IG) years of age shall be em- 
ployed in the Lidustry. 

No person under eighteen (18) years of age shall be employed at 
operations or occupations which are hazardous in nature or clangerou.s 
to health. The Code Authority shall submit to the Board, within 
six (6) months after the effective date of this Code, a list of such 
operations or occupations. In any State an employer shall be deemed 
to have complied with the provision as to age if he shall have on file 
a certificate or permit duly issued by the Authority in such State, 
empowered to issue employment or age certificates or permits, show- 
ing that the employee is of the age required by this Section. 

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

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

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

111343° 1465-112 35 2 



26 

Sectiox 3. Every employer shall provide for the safety and health 
of his employees at the places and during the hours of their employ- 
ment. Standards for safety and health shall be submitted by the 
Code Authority to the Board within three (3) months after the effec- 
tive date of this Code, and upon apj^roval by the Board, shall become 
effective as a part of this Code. 

Section 4. No provisions in this Code shall supersede any State or 
Federal law which imposes more stringent requirements on employers 
as to age of employees, wages, hours of work, or as to safety, health, 
sanitary or general working conditions, or insurance, or fire protec- 
tion, than are imposed by this Code. 

Section 5. All employers shall post and keep posted complete copies 
of the labor provisions of this Code and all amendments thereto when 
made in conspicuous places easily 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 Board. 

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

Section 7. Employers shall arrange that the hours worked by any 
employee during each day shall be consecutive, provided that an in- 
terval not longer than one hour may be allowed for each regular meal 
period, and such interval not counted as part of the employee's work- 
ing time. Any rest period which may be given employees shall not 
be deducted from such employee's working time. 

Section 8. No employer shall contract for work to be done except 
where the person performing the contract is subject to the provisions 
of this Code or the Code adopted by the industry covering such work ; 
and in no case shall an employer avoid or evade the labor provisions 
of this Code by contractinty his work to any pei*sons subject to labor 
regulations less stringent than those provided in this Code. 

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

Section 1. (a) A Code Authority is hereby established consisting 
of one (1) member from each Divisional Code Council, elected by the 
members of each .such Divisional Code Council to serve for one year 
and until their respective successors shall be elected. 

(b) Pending the election of the permanent Code Authority, the 
Board of Directors of the Association shall act as a temporary Code 
Authority. 

Section 2. (a) The following Divisional Code Councils are hereby 
established, consisting of five (5) members each, to administer the 
separate trade practice schedules of this Code applicable to their 
respective Divisions of this Industry : 

The Botanical Drug Code Council 

Tlie Essential Oil Code Council 

The Spirit & Oil Soluble Gum Code Council 

The Water Soluble Gum Code Council 

The Vanilla Bean Code Council 



27 

(b) The members of each Divisional Code Council shall be elected 
in the following manner and shall serve for a term of one year or 
until their successors shall be elected : 

(1) After the effective date of this Code, each Vice-President of 
the Association in charge of a Division shall appoint a nominating 
Committee of three (3) which shall nominate at least ten (10) 
candidates. Any ten (10) members of the Division ma}^, in writing, 
submit an additional nomination. Each such Vice-President shall 
call an open meeting of his Division to wdiich shall be invited all 
persons who are members of the Division and whose names can be 
ascertained by reasonable diligence. 

Each member of the Division shall be entitled to the number 
of votes indicated upon the following table : 

Aggregate Annual Sales Volume for the Calendar Year Corresponding 
Preceding the Year in Which the Election is Held : number of votes 

$25,000 or less 5 

$25,000.01 to $50,000 10 

$50,000.01 to $100,000 15 

$100,000.01 to $200,000 20 

$200,000.01 to $400,000 25 

$400,000.01 to $800,000 30 

$800,000.01 to $1,600,000 35 

More than $1,60,000 40 

Note. — Number of votes must be computed upon sales of products included 
under the definition of the Division. Sales in other Divisions or other Indus- 
tries cannot be counted in determining votes. 

Voting shall be cumulative and each member may cast his votes 
for any five or less number of nominees or may cast them all for one 
nominee. The five (5) individuals receiving the greatest number 
of votes shall be elected, and shall without delay elect one of their 
number to membership on the Code Authority. 

Sectiox 3. In addition to membership as above provided, there 
may be three (3) or less members on the Code Authority and on 
each Divisional Code Council, without vote and without compen- 
sation from the Industry, to be known as Administration Members, 
to be appointed by the Board to serve for such terms as it may 
specify. 

Section 4. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Author- 
ity or any Divisional Code Council shall (1) impose no inequitable 
restriction on membership, and (2) submit to the Board 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 Board may deem 
necessary to effectuate the purposes of the Act. 

Sectiox 5. In order that the Code Authority and Divisional Code 
Councils shall, at all times, be truly representative of the Industry 
and in other res]3ects comply with the provisions of the Act, the 
Board may provide such hearings as it may deem proper; and there- 
after if it shall find that the Code Authority or any Divisional 
Code Council is not truly representative or does not in other respects 
comply with the provisions of the Act, may require an appropriate 



28 

modification in the method of selection of the Code Authority, or 
any Divisional Code Council. 

Section 6. Nothing contained in this Code shall constitute the 
members of the Code Authority nor the members of the Divisional 
Code Coimcils partners for any purpose. Nor shall any member 
of the Code Authority or Divisional Code Councils be liable in any 
manner to anyone for any act of any other member, officer, agent, or 
employee of the Code Authority or Divisional Code Councils. Nor 
shall any member of the Code Authority or Divisional Code Coun- 
cils, exercising reasonable diligence in the conduct of his duties 
hereunder, be liable to an^'one for any action or omission to act under 
the Code, except for his own willful malfeasance or nonfeasance. 

Section 7. If the Board shall determine that any action of the 
Code Authority, Divisional Code Councils, or any agency thereof 
may be unfair or unjust or contrary to the public interest, the Board 
may require that such action be suspended to afford an opportunity 
for investigation of the merits of such action and further considera- 
tion by the Code Authority, Divisional Code Council, or agency 
pending final action which shall not be effective unless the Board 
approves or unless it shall fail to disapprove after thirty days' notice 
to it of intention to proceed with such action in its original or 
modified form. 

POWERS AND DUTIES 

Section 8. Subject to such rules and regulations as may be issued 
by the Boarxl, the Code Authority shall have the following powers 
and duties, in addition to those authorized by other provisions of 
this Code; 

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

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

(c) To obtain from members of the Industr}'^ such information 
and reports as are required for the administration of the Code. In 
addition to infornuition required to be submitted to the Code Author- 
ity, members of the Industry subject to this Code shall furnish such 
statistical information as the Board may deem necessary for the 
purposes recited in Section 3 (a) of the Act to such Federal and State 
agencies as it may designate; provided that nothing in this Code 
shall relieve any member of the Industry of any existing obligations 
to furnish reportvS to any Government agency. No individual report 
shall be disclosed to any other member of the Industry or to any other 
party except to such other Governmental agencies as may be directed 
by the Board. 

(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 delegate to the Divisional Code Councils such duties as 
are necessary to the i^roper administration of this Code within their 
respective Divisions, and to receive from such Councils recommenda- 



29 

tions and su^grestions for the betterment of conditions within the 
Industry and for the promotion of harmonious relations with the 
Consumer, labor and other industries upon matters of common inter- 
est, provided that nothing herein shall relieve the Code Authority of 
its duties or responsibilities under this Code. 

(f) To make recommendations to the Board for the coordination 
of the administration of this Code with such other codes, if any, 
as may be related to or aifect members of the Industry. 

(g) (1) It bein<]r 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 obli fixations as are necessary and proper 
for the foreofoing purposes, and to meet suvh 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 Board for its approval, subject to such notice 
and opportunity to be heard as it may deem necessary (1) an item- 
ized budget of its estimated expenses for the foregoing purposes, 
and (2) an equitable basis upon which the funds necessary to sup- 
port such budget shall be contributed by members of the Industry; 

c. After such budget and basis of contribution have been ap- 
proved by the Board, to determine and obtain equitable contribution 
as above set forth by all members of the Industry, and to that end, 
if necessary, to institute legal proceedings therefor in its own name. 

(2) Each member of the Industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Author- 
ity, determined as hereinabove provided, and subject to such rules 
and regulations pertaining thereto issued by the Board. 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 any of its voluntary activities or to make 
use of any emblem or insignia of the National Recovery Admin- 
istration. 

(3) The Code Authority shall neither incur nor pay any obligation 
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 Board ; 
and no subsequent budget shall contain any deficiency budget item 
for expenditures in excess of the required budget estimates except 
which the Board shall have so approved. 

(h) To recommend to the Board 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 or industries; measures for industrial planning, and 
stabilization of employment; and including modifications of this 
Code which shall become effective as part hereof upon approval 
by the Board after such notice and hearing as it may specify. 

(i) To appoint a Trade Practice Committee which shall meet with 
the Trade Practice Committees appointed under such other codes 
as ma}^ be related to the Industry for the purpose of formulating 



30 

fair trade jjracticos to fjovorn the relationships betweon employers 
under this Code and under such other codes to the end that such fair 
trade practices may be ])ropo:-ed to tlie Board as amendments to this 
Code and such other Codes. 

(j) The Code Authority shall cause to be formulated methods of 
cost finding and accountino; capable of use by all members of the 
Industry, and shall submit such methods to the Board for review. 
If approved b}' the Board, full information concerninf^ such 
methods shall b? made available to all members of the Industry. 
Thereafter, each member of the Industry shall utilize such methods 
to the extent found practicable. Nothin<^ herein contained shall be 
construed to ])ermit tlie Code Authority, any ap;ency thereof, or any 
member of the Industry- to sugfjest uniform additions, percentages or 
differentials or other uniform items of cost which are designed to 
bring about arbitrary uniformity of costs or prices. 

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

(1) To appoint representatives to serve on an};- Drug Industry 
Coordinating Council which may be established to be composed of 
representatives from the various code authorities governing codes 
which are directly related to the Drug Industry, and to act as a 
planning and coordinating agency, and as an agency for the stabili- 
zation of employment, for the entire Drug Industry. 

(m) Within one month after the effective date of this Code, to 
appoint a committee to make a study with a view to the establish- 
ment, within three months following, of classifications and stand- 
ards of dimensioning and quality, containers, weights, measures, 
and labelling for products of the Industry, in cooperation with the 
American Standards Association, the Bureau of Standards of the 
United States Department of Commerce, or any other organization 
Avhich will guarantee both consumer and Government representation 
in the drafting of such standards. 

(n) To make a study of the use by members of the Industry of 
long-torm contracts and to recommend to the Board any additional 
trade practice rules that may be necessary to control such abuses as 
may be found to exist in the use of long-term contracts. Such trade 
practice rules shall become operative as a part of this Code upon 
approval by the Board after such notice and hearing as it may deem 
necessary. 

Article VII — General 

Section 1. Except as may be subsequently set forth in a specific 
or supplementary Export Code for the Industry, the provisions of 
this Code now or hereafter adopted with regard to prices, discounts, 
deductions, allowances, extras, commissions or methods and/or 
terms of sale are not to apply to direct export sales. 

Section 2. In addition to Articles I to XI, inclusive, of this Code 
the attached Schedules (A, B, C, D and E) are supplementary to 
and constitute part of the Code of Fair Competition for the Na- 
tional Organic Products Industry, and are applicable each to its 
respective Division. 



31 
Article VITI — jModifiCxYtiuk 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of subsection (b) of Section 10 of the Act, from time to 
time to cancel or modify any order, approval, license, rule, or regu- 
lation issued under Title I of said Act and specifically, but without 
limitation, to the right of the President to cancel or modify his ap- 
proval of this Code or any conditions imi^osed by him on his 
approval thereof. 

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

Article IX — Monopolies, Etc. 

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

Article X — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made more difficult of consumtnation 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 XI — Effective Date . 

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

Approved Code No. 545. 
Registry No. 613-04. 



SCHEDULE A 

SiTPPLEMENTAL PROVISIONS APPLICABLE TO THE BOTANICAL DRUG INDUSTRY 

The following supplemental provisions shall apply to the Botanical Drug 
Industry : 

Sexttion I — Definitions 

The term " memher of the Division " as used in this Schedule includes, but 
without limitation, any individual, partnership, association, corporation, or 
other type of enterprise engaged in the Botanical Drug Industrj', either as an 
employer or on his or its own behalf. 

Section II — Trade Practice Rules 

Rule 1. No member of the Division shall use advertising or selling methods 
or credit terms which have the capacity or tendency to deceive or mislead the 
customer or prospective customer. 

Rule 2. Each member of the Division shall abide by the following terms and 
sprcitications of sale: 

(a) The cash discount shall not exceed one (1) percent, and shall not be 
allowed unless payment is made within ten (10) days from date of shipment. 

(b) The net term of payment shall not exceed thirty (30) days from date 
of shipment. 

(c) No guarantee or protection in any form shall be given a customer against 
decline in the soiling price of any product. 

(d) Crude and nulled botanical products, except for deliveiy within their 
metropolitan districts, shall be sold on a delivery basis of ex-dock and ex- 
warehouse, or f. o. b. carrier. 

(e) Each sales contract shall contain a definite expiration date, and a spe- 
cific variation not to exceed fifteen (15) percent between the minimum and 
maximum quantity. 

Rule 3. No meruijer of the Division shall secretly offer or make any pay- 
ment or allowance of a rebate, refund, commission, credit, unearned discount, 
or excess allowance, whether in the form of money or otherwise, nor shall any 
member secretly offer or extend to any customer any special ser\'ice or privi- 
lege not extended to all customers of the same class, for the pui"pose of influ- 
encing a sale. 

Rl"le 4. Allowances for weights of all containers shall be in accordance with 
provisions of the official Tares of the New York Board of Trade. 

(32) 



SCHEDULE B 

SUPPLEMBNTAX PROVISIONS APPLICABLE TO THE ESSENTIAL OiL INDUSTRY 

The following supplemental provisions shall apply to tlie Essential Oil 
Industry : 

Section I — Definitions 

The term " member of tlie Division " as used in this Schedule, includes, 
but without limitation, any individual, partnership, association, corporation, 
or other type of enterprise engaged in the Essential Oil Industry, either as an 
employer or on his or its own behalf. 

Section II — Trade Practice Rlxes 

Rule 1. No member of the Division shall use advertising or selling methods or 
credit terms which have the capacity or tendency to deceive or mislead the 
customer or prospective customer. 

Rule 2. No member of the Division shall withhold from or insert in any 
quotation or invoice any statement that makes it inaccurate in any material 
particular. 

Rule 3. No member of the Division shall brand or mark or pack any com- 
modity in any manner which tends to deceive or mislead purchasers with 
respect to the brand, grade, quality, quantity, origin, size, material content, 
or preparation of such commodity. 

Rule 4. No member of the Division shall use advertising or other representa- 
tion which refers inaccurately in any material particular to any competitors 
or their commodities, prices, values, credit terms, policies, or services. 

RjXLE 5. No member of the Division shall give, permit to be given, or directly 
offer to give, anything of value for the purpose of influencing or rewarding 
the action of any employee, agent, or representative of another in relation 
to the business of the employer of such employee, the principal of such agent, 
or the represented party, without the knowledge of such employer, principal, 
or party. This provision shall not be construed to prohibit free and general 
distribution of articles commonly used for advertising except so far as such 
articles are actually used for commercial bribery as hereinabove defined. 

Rl-lb 6. No member of the Division shall make any unauthorized use of 
any copy, counterfeit, or colorable imitation of the trade mark, label, or identi- 
fying name or device of the products of another, so as to deceive or mislead 
purhasers or prospective purchasers. 

Rule 7. No member of the Division shall secretly offer or make any pay- 
ment or allowance of a rebate, refund, commission, credit, unearned discount or 
excess allowance, whether in the form of money or otherwise, nor shall any 
member 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 influ- 
encing a sale. 

Rn.E 8. Each member of the Division shall abide by the following terms and 
specifications of sale. 

(a) No member of the Industry shall willfully induce or attempt to induce 
the breach of existing contracts between competitors and their customers by 
any false or deceptive means, or interfere with or obstruct the performance 
of any such contractual duties or services by any such means, with the purpose 
and effect of hampering, injuring or embarrassing competitors in their business. 

(b) No guarantee or protection in any fonn shall be given a customer 
against decline in the selling price of any product. 

(c) Each member of the Division shall u.se a contract form which states 
delivery specifications, price, style and size of container, delivery ix)iut, and 
terms of sale. 

(33) 



34 

(d) The cash discount shall not exceed one (1) percent, and shall not be 
alhiwed unless payment is made within ten (10) days from date of shipment. 

(e) The net term of payment sliall not exceed thirty CM)) days from date of 
shii)ment. 

(f) No member of the Division shall ship upon consignment except as may 
be pi'rmitted hy the Board. 

KvLK 9. Any natural impurity in or sophistication of a product of which 
a member of the Division knows or has reason to know or could reasonably 
determine shall be clearly set forth on the label and invoice for said product. 

Rule 10. No member of the Division shall make any contract of sale relating 
to imported products and/or products of the Industry which are mauufactui'ed 
from imported raw materials or are a blend of imported and domestic products 
■which is to endure for a period longer than six (6) months. 



SCHEDULE 

Supplemental Provisions Applicable to the Spirit and Oil Soluble Gum 

Industry 

The following supplemental provisions shall apply to the Spirit and Oil 
Soluble Gum Industry : 

Section I — Definitions 

The term " member of the Division " as used in this Schedule, includes, but 
without limitation, any individual, partnership, association, corporation, or 
other type of enterprise engaged in the Spirit and Oil Soluble Gum Industry, 
either as an employer or on his or its own behalf. 

Section II — Trade Practice Rules 

Rui.B 1. No member of the Division shall use advertising or selling methods 
or credit terms which have the capacity or tendency to deceive or mislead the 
customer or prospective customer. 

Rule 2. No member of the Division shall withhold from or insert in any 
quotation or invoice any statement that makes it inaccurate in any material 
particular. 

Rule 3. No member of the Division shall brand or mark or pack any com- 
modity in any manner which tends to deceive or mislead purchasers with 
respect to the brand, grade, quality, quantity, origin, size, material content, 
or preparation of such commodity. 

Rule 4. No member of the Division shall use advertising or other repre- 
sentation which refers inaccurately in any material particular to any com- 
petitors or their commodities, prices, values, credit terms, polices, or services. 

Rule 5. No member of the Division shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influencing or 
rewarding the action of any employee, agent, or representative of another in 
relation to the business of the employer of such employee, the principal of 
such agent or the represented party without the knowledge of such employer, 
principal, or jjarty. 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 commei'cial bribery as herein- 
above defined. 

Rule 6. No member of the Division shall secretly offer or make any pay- 
ment 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 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. Each member of the Division shall abide by the following terms 
and specifications of sale : 

(a) No guarantee or protection in any form shall be given any customer 
against decline in the selling price of any product. 

(b) The cash discount shall not exceed one (1) i)ercent, and shall not be 
allowed imless payment is made within ten (10) days from date of shipment. 

(c) The net terms of payment shall not exceed thirty (30) days from date 
of shipment. 

(d) Each member of the Division shall use a contract form which states 
delivery specification.s, price, style, size of container, delivery point, and tenms 
of sale. 

(e) No member of the Division shall make any contract of sale relating to 
imported products and/or products of the Industry which are a blend of 
imported and domestic products whicli is to endure for a oeriod longer than 
six (6) mouths. 

(35) 



SCHEDULE D 

Supplemental Provisions Appxicablej to the Water Soluble Gum Industtsy 

The following supplemental provisions shall apply to the Water Soluble Gum 
Industry : 

Section I — Dkfimtions 

The term " member of the Division " as used in this Schedule, includes, but 
without limitation, any individual, partnership, association, corporation, or 
other type of enterprise engaged in tlie Water Soluble Gum Industry, either as 
an employer or on his or its own behalf. 

Section II — Trade Pr.\ctice Rules 

RiLK 1. No member of the Division shall use advertising or selling methods 
or credit terms which have the capacity or tendency to deceive or mislead the 
customer or prosi>cctive customer. 

Rui.E 2. No member of the Division shall withhold from or insert in any 
quotation or invoice any statement that makes it inaccurate in any material 
particular. 

Rule 3. No member of tlie Division shall use advertising or other representa- 
tion which refers inaccurately in any material particular to any competitors or 
their commodities, prices, values, credit terms, policies or services. 

Rrr.E 4. Each member of the Division shall abide by the following terms and 
specifications of sale: 

(a) The casli discount shall not exceed one (1) percent, and shall not be 
allowed unless payment is made within ten (10) days from date of shipment, 
in United States funds. 

(b) The net terms of payment shall not exceed thirty (30) days from date of 
shipment, in United States funds. 

(c) No guarantee or protection in any form shall be given any customer 
against dei-line in the selling price of any product. 

(d) Each member of the Division shall use a contract form which states 
delivery specifications, price, style and size of container, delivery point, and 
terms of sale. 

(e) Except for deliveries within their metropolitan trading areas, all members 
of the Division shall make all shipments F. O. B. ears point of shipment. 

Rule 5. No member of the Division 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 othenvise, nor shall any member 
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 6. No member of the Divisi(m shall make any contract of sale relating 
to imported products and/or products of the Industry which are a blend of 
imported and domestic products which is to endure for a period longer than 
six (6) months. 

(36) 



SCHEDULE E 

Supplemental Provisions Applicable to the Vanilla Bean Industry 

The followiug supplemental provisions shall apply to the Vanilla Bean 
Industry : 

Section I — Definitions 

The term " member of the Division " as used in this Schedule includes, but 
without limitation, any individual, partnership, association, coriDoration, or 
other type of enterprise engaged in the Vanilla Bean Industry either as an 
employer or on his or its own behalf. 

Section II — Trade Practice Rules 

Rule 1. No member of the Division shall use advertising or selling methods 
or credit terms which have the capacity or tendency to deceive or mislead 
the customer or prospective customer. 

Rule 2. No member of the Division shall withhold from or insert in any 
quotation or invoice any statement that makes it inaccurate in any material 
particular. 

Rule 3. No member of the Division shall brand or mark or pack any com- 
modity in any manner which tends to deceive or mislead purchaser.s with 
respect to the brand, gi-ade, quality, quantity, origin, size, material content, 
or preparation of such commodity. 

Rule 4. No member of the Division shall use advertising or other representa- 
tion which refers inaccurately in any material particular to any competitors 
or their commodities, prices, values, credit terms, policies, or services. 

Rule 5. No member of the Division shall secretly offer or muke 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 any 
member 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 G. Each member of the Division shall abide by the following terms and 
speeilications of sale : 

(a) The cash discount shall not exceed one (1) percent, and shall not be 
allowed unless payment is made within ten (10) days from date of shipment, 
unless it takes longer than ten (10) days to make deliveries, and in such case 
the cash discount period shall not exceed thirty (30) days. 

(b) The net terms of payment shall not exceed thirty (30) days unless, 
it takes longer than ten (10) days to make deliveries, and in such case the 
net terms of payment shall not exceed forty-five (45) days. 

(c) No guarantee or protection in any form shall be given any customer 
against decline in the selling price of any product. 

(d) Merchandise, except for delivery within metropolitan limits, shall be 
sold only upon a delivery basis from home oflice of seller, ex-dock, ex-ware- 
house, or F. O. B. carrier. 

(e) Each meml)er of the Division .shall use a contract form which states 
delivery specifications, price, style and size of container, delivery point, and 
terms of sale. 

RiTLE 7. No member of the Division shall make any contract of sale relating 
to imported products and/or products of the Industry which are a blend of 
imported and domestic pi-oducts which is to endure for a period longer than 
six (G) months. 

(37) 

o 



Approved Code No. 546 
CODE OF FAIR COMPETITION 

FOR THE 

PACIFIC COAST DRIED FRUIT INDUSTRY 

As Approved on January 26, 1935 



ORDER 



Code of Fair Competition for the Pacific Coast Dried Fruit 

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 Pacific Coast Dried Fruit 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate 
by reference said annexed report and does find that said Code com- 
plies in all respects with the pertinent provisions and will promote 
the policies and purposes of said title of said act; and does hereby 
order that said Code of Fair Competition be and it is hereby 
approved. 

National Industrial Recoa^ery Board, 
By W. A. Harriman, Adminutrative Officer. 
Approval recommended : 
Armin "W. Riley, 

Divisio)i Admiiiisf7'ator. 

Washington, D. C, 

January 26, 1935. 



112179° 1465-113 35 (39) 



REPOET TO THE PRESIDENT 

The PKEsroENT, 

The White House. 
Sir : This is a report on the Code of Fair Competition for the 
Pacific Coast Dried Fruit Industry, the hearing having been con- 
ducted thereon in AVashington, D. C., August 4, 1934, in accordance 
with the provisions of Title I of the National Industrial Recovery 
Act. 

GENERAL 

Members of the Industry buj^ the dried fruit from the farmer, 
after which it is cleaned, graded, sorted, washed, dried, })acked, and 
shipped. 

The production and volume for 1929, latest Census fiiiures avail- 
able, total 938,098,695 pounds, valued at $75,891,568. 

The production of dried fruits has increased over 500 per cent 
during the last forty j'ears. 

The 1932 estimate is 515,654 tons produced in California and 
30,500 tons in the Pacific Northwest and this represents a 10 per 
cent increase over 1931. It is estimated that the 1933 crop was 12 
per cent under 1932. 

Consumption of dried fruit is best indicated by the following j^er 
capita figures: 

Pounds 

1923 6.39 

1925 7.51 

1927 5.22 

1!)29 4.71 

1932 5.16 

The Industr}' is divided into the following seven divisi(ms : 

Dried Prunes 
Dried Raisins 
Dried Peaches 
Dried Apricots 
Dried Apples 
Dried Figs 
Dried Pears 

Prunes are the most important in volume and California pro- 
duced 90 per cent thereof, the balance being produced in the Pacific 
Northwest. 

Raisin production is confined almost entirely to California. The 
same appliCvS to dried peaches and apricots. 

Sixty per cent of the dried applet is produced in California and 
40 per cent in the Pacific Northwest. Approximately 85 per cent 
is exported to Continental Europe. 

Practically all the dried figs are pi'oduced in California. 

Dried peai-s arc of minor importance in the Dried Fruit Industry. 

(40) 



41 



EXPORTS 



Europe is the principal foreign market. 

Our prune exports compete in foreign markets with Yugo-Slavia; 
Germany is our largest importer. As to raisins, our foreign compe- 
tition is Austi-alia, Turkey, and Greece. 



EMPLOYMENT 



Complete employment figures are not available. It is estimated 
that in 1929 there were 3.000 employed during the slack season and 
approximately 8,G00 during the peak season. 

For 1933, it is estimated that during the slack season the Industry 
employed approximately 3,G0O and during the peak season, 12,200. 

Answers to questionnaires to members of the Industry (represent- 
ing approximately 95 per cent of the Industry) show" a peak em- 
l)royment for 1932 of 9,700; peak for Noyember, 1933, 11,400. 

PRO\^SIONS AS TO HOURS 

The Code ]:)royides for a forty (40) hour week and eight (8) 
hour day, with the following exceptions: 

(a) Employees in managerial, executive, supervisory or technical 
ca])acities who regularly receive not less than thirty-five dollars 
($35.00) per Aveek in cities of one hundred thousand (100,000) 
population, or over, or thirty dollars ($30.00) per week in cities 
and towns of less than one hundred thousand (100,000) population 
and more than twenty-five thousand (25,000) population, or twenty- 
five dollars ($25.00) elsewhere; also outside salesmen who regularly 
receive not less than thirty dollars ($30.00) per week; and buyers. 

(b) Employees in packing houses or receiving stations which 
employ not more than three (3) persons, in towns of less than twenty- 
fiA'e hundred (2500) population, maj^, during any two (2) weeks' 
period, be permitted to work not to exceed an average of forty- 
eight (48) hours per week. 

(c) Watchmen, provided they shall not be permitted to work in 
excess of fifty-six (56) hours in any one week. 

(d) Chauffeurs, deliverymen and their helpers, provided they 
shall not be permitted to work in excess of forty-eight (48) hours 
in any one week. 

(e) Engineers and firemen, provided they shall not be permitted 
to work in excess of forty-eight (48) hours in any one week, nor 
more than nine (9) hours in any one day. 

(f) During the season when shipments must be made in peak 
volume to meet consumptive demands and distribution requirements, 
employees whose maximum hours under other provisions of this 
Article are forty (40) hours per week, may, during not more than 
fourteen (14) weeks in any calendar year be permitted to work not 
in excess of forty-eight (48) hours per week. 

(g) Any employee on emergency maintenance or emergency re- 
pair work involving breakdowns or protection of life or property, 
or any specially skilled employee in emergencies occasioned by the 
necessity for the services of such employee which cannot be cared 
for b}' the employment of additional men may be permitted to work 



42 

in excess of the maximum hours hereinabove provided, but in any 
sucli case at least one and one-third (1^/^) times their normal rates 
shall be paid to employees for hours worked in excess of maximum 
hours. 

PROVISIONS AS TO WAGES 

The Code provides as follows: 

Xo person employed in clerical, accounting or other office work 
shall be paid less than at the rates of: 

Sixteen dollars ($16.00) per week in cities of over one hundred 
thousand (100,000) population or in the immediate trade areas 
thereof. 

Fifteen dollars ($15.00) per week in cities of less than one hundred 
thousand (100,000) and more than twenty-five thousand (25,000) 
population or in the immediate trade areas thereof. 

Fourteen dollars ($14.00) per week elsewhere. 

No watchman shall be paid less than at the rate of eighteen 
dollars ($18.00) per week. 

Xo other employee shall be paid less than at the rate of forty cents 
(400) per hour; provided, however, that emploj-ees doing light work, 
such as preparing or handling small consumer packages, sorting, 
" hand-picking ", or checking fruit, labeling, or paper-lining boxes, 
etc., shall be paid not less than at the rate of thirty-three and 
one-third cents (331/^0) per hour, provided that beginners doing such 
light work shall be limited to a sixty (GO) day period of learning, 
and shall not exceed fifteen per cent (15%) of the total number of 
employees of each employer and shall be paid during the period of 
learning not less than at the rate of twenty-seven cents (27^-) per 
hour. The number of beginners to be employed, as mentioned in 
this paragraph, is subject to review by the Code Authority with the 
right to increase the number if good cause be shown, subject to the 
disapproval of the Xational Industrial Recovery Board. 

In the States of "Washingion, Oregon and Idaho employees may be 
paid not less than at rates of five cents (5^) below the minima pro- 
vided in Section 3 (a) of Article IV. 

Provision is also made for the protection' of minimmn rates 
whetlier on a time rate, piece-work, or other basis. Provision is 
made for the protection of female workers performing substantially 
the same work as male employees; for the maintenance of fair dii- 
ferentials and wage adjustments; employment of physically handi- 
capped persons on light work; the posting of labor provisions; tlie 
maintenance of health and safety standards, and that working mem- 
bers of a family are classed as employees and subject to the labor 
provisions of the Code. Child labor is proliibited ; no person under 
18 years of age may be employed in a dangerous occupation. 

WAGES AXD EMPLOYMENT 

The Code payroll increase over Xovember, 1932 is 52.9 per cent, 
of which reduction in hours accounts for 31.8 per cent and minimum 
wages, 21.1 per cent. The Code also realizes approximately a 3iy2 
per cent spread of employment. 



43. 



ADMINISTRATION 



Article VI of the Code provides for an administrative body, in- 
suring proper representation of all divisions of the Industry. 

FINDINGS 

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

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

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by the Board 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 group 
is an industrial group truly representative of the aforesaid Industry. 

(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, the Board has approved this Code. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Ofjlc&r. 
January 26, 1935. 



COD]E OF FAIR COMPETITION FOR THE PACIFIC COAST 
DRIED FRUIT IKDUSTRY 

AktICLE I — PURTOSES 

To effect the policies of Title I of the National Industrial Re- 
covery Act, this Code is established as a Code of Fair Competition 
for the Pacific Coast Dried Fruit Industry, and its provisions shall 
be the standards of fair competition for such industry and shall be 
binding upon every member thereof. 

Articl£ II — Definitigns 

Section 1. As used in this Code : 

(a) The terms "President", "Act", and "Administrator" mean 
respectively the President of the United States, the National Indus- 
trial Recovery Act, and the Administrator for Industrial Recoveiy. 

(b) The terms " dried fruit industry " and " industry " mean the 
commercial packing and/or processing of dried fruits and/or the 
sale of packed dried fruits by the packer or processor thereof. 

(c) The term " member of the industry " includes any individual, 
partnership, association, corporation or other form of enterprise 
engaged in the dried fruit industry, either as an employer or on 
his or its own behalf. Any person who shall cause dried fruits to 
be processed or packed for his account by another, whether on toll 
or otherwise, shall with respect to any sale or other disposition 
thereof, except a sale in the regular course of operating a wholesale 
or retail grocery business, be deemed a member of the industry and 
bound by the provisions of the Code. 

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

(e) The term " emplo^'er " includes any one by whom any such em- 
ployee is compensated or employed. 

(f) The term "watchman" includes any employee who devotes 
ninety per cent (90%) of his working time to watching and guard- 
ing the premises and property of an establishment in the industry. 

(g) The term " outside salesmen " means salesmen who, at the 
time involved, are engaged not less than sixty per cent (G0%) of 
their working l)ours outside of the establishment of the employer 
and who do not deliver merchandise. 

(h) The term "buyer" means an employee who is engaged in 
purchasing dried fruit from growers or producers thereof. 

(i) The term "council" means the Pacific Coast Dried Fruit 
Council lierein provided for. 

(j) The term "trade buyer" means any commercial purchaser 
buying for resale, baking or other manufacturing purposes as dis- 
tinguished from an ultimate consumer purchaser. 

(44) 



45 

(k) The term " dried fruits " means and inchides any dried or 
dehydrated fruits (includiiif^ raisins, bleached or unbleached and 
apricot kernels, but not inchidins^ dates or nuts) produced in Cali- 
fornia, Oregon, Washington or Idaho. 

(1) The term "packing"' means and includes the packing of any 
dried fruits, whether in '' natural '' or processed condition, in boxes, 
cartons, paper bags, " export bags ", transparent wraps or any other 
type of package or container in which dried fruits are or may be 
sold or shipped in interstate or foreign commerce. The manufacture 
of dried fruits by the drying, curing or dehydration of fresh fruits 
is not processing or packing within the meaning of the Code, but the 
packing (as defined in this subdivision) of fruits so dried, cured or 
dehydrated, is packing within the meaning hereof, whether done 
by the person by whom such dried fruits are produced, dried, cured 
or dehydrated or by another. The placing of dried fruits by a 
grower in sacks or open containers to accomplish their delivery to a 
packing plant whore they will in regular course be removed from, 
such sacks or containers shall not be deemed packing. 

(m) The term "sell" includes contracting to sell and "sale" 
includes a contract to sell. 

Section 2. Population shall be determined by reference to the 
latest Census of the United States (U. S. Department of Commerce, 
Bureau of Census). 

Article III — Houks 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any week or eight (8) hours in any day, except 
as follows : 

(a) Emjjloyees in managerial, executive, supervisory or technical 
capacities who regularly receive not less than thirty-five dollari 
($35.00) per week in cities of one hundred thousand (100,000) popu- 
lation, or over, or thirty dollars ($30.00) per week in cities and 
towns of less than one hundred thousand (100.000) population and 
more than twenty-five thousand (25,000) population, or twenty-five 
dollars ($25.00) elsewhere; also outside salesmen who regularly 
receive not less than thirty dollars ($30.00) per week; and buyers; 

(b) Employees in packing houses or receiving stations which 
employ not more than three (3) persons, in towns of less than 
twenty-five hundred (2500) population, may, during any two (2) 
weeks' period, be permitted to work not to exceed an average of 
forty-eight (48) hours per week. 

(e) Watchmen, provided they shall not be permitted to work in 
excess of fifty-six (56) hours in any one week; 

(d) Chauffeurs, deliverymen and their helpers, provided they shall 
not be permitted to work in excess of forty-eight (48) hours in any 
one week; 

(e) Engineers and firemen, provided they shall not be permitted 
to woriv in excess of forty-eight (48) hours in any one week, nor 
more than nine (9) hours in any one day; 

(f) During the season when shipments must be made in peak 
volume to meet consumptive demand and distribution requirements, 
employees whose maximum hours under other provisions of this 
Article are forty (40) hours per week, may, during not more than 

112179° 1465-113 35 2 



46 

fourteen (14) weeks in any calendar year be permitted to work not 
in excels of forty-eio;ht (48) hours per week; 

(g) Any employee on emergency maintenance or emergency re- 
pair work involving breakdowns or protection of life or property, 
or any specially skilled employee in emergencies occasioned by the 
necessity for the services of such employee which cannot be cared 
for by the employment of additional men may be permitted to work 
in excess of the maximum hours hereinabove provided, but in any 
such case at least one and one-third (l^/s) times their normal rates 
shall be paid to employees for hours worked in excess of maximum 
hours. 

Section 2. No employer shall knowingly permit any employee to 
work for a total number of hours in excess of the number of hours 
prescribed for his occupation, for each week and day, whether em- 
ployed by one or more employers. 

Section 3. No employee shall be permitted to work more than six 
(6) days in any seven (7) day period, except employees included 
in paragraphs (a), (c) and (g) of Section 1 of this Article. 

Article IV — Wages 

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

Sixteen dollars ($16.00) per week in cities of over one hundred 
thousand (100,000) population or in the immediate trade areas 
thereof; 

Fifteen dollars ($15.00) per week in cities of less than one hundred 
thousand (100.000) and more than twenty-five thousand (25,000) 
population or in the immediate trade areas thereof; 

Fourteen dollars ($14.00) per week elsewhere. 

Section 2. No watchman shall be paid less than at the rat© of 
eighteen dollars ($18.00) per week. 

Section 3. (a) No other employee shall be paid less than at the 
rate of forty cents (40^) per hour; provided, however, that employees 
doing light work, such as preparing or handling small consumer 
packages, sorting, " hand-picking ", or checking fruit, labeling or 
paper-lining boxes, etc., shall be paid not less than at the rate of 
thirty-three and one-third cents (331/3^) per hour, provided that 
learners doing such light work shall be limited to a four (4) weeks' 
period of learning, and shall not exceed fifteen per cent (15%) of 
the total number of employees of each employer and shall be paid 
during the period of learning not less than at tlie rate of twenty- 
seven cents (27^) per hour. The number of learners to be employed, 
as mentioned in this Section, is subject to review by the Code Author- 
ity with the right to increase the number if good cause be shown, 
subject to the disapproval of the Administrator. 

Section 4. A person Avhose 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 issuing 



47 

certificates to such persons. Each employer shall file monthly with 
the Code Authority a list of all such persons employed by him, show- 
ing the wages paid to, and the maximum hours of work for such 
employee. 

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

Section 6. This Article establishes minimum rat€s of pay which 
shall apply, irrespective of w4iether an employee is actually com- 
pensated on a time rate, piece work, or other basis. 

Akticle V. — General Lador Provisions 

Section 1. No person under sixteen (16) j^ears of age shall be 
employed in the industry. No person under eighteen (18) years of 
age shall be employed at operations or occupations which are hazard- 
ous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator, within sixty (60) days after the ef- 
fective date of this Code, a list of such operations, or occupations. 
In any jurisdiction, an employer shall be deemed to have complied 
with this provision as to age if he shall have on file a certificate or 
permit duly signed by the authority in such jurisdiction empowered 
to issue employment or age certificates or permits showing that the 
emplo5'ee is of the required age. 

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

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

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

Section 3. Every employer shall provide for the safety and health 
of emploj^ees during the Iipurs 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 the Code. 

Section 4. No provision in this Code shall supersede any State or 
Federal law which imposes on employers more stringent require- 
ments as to age of employees, wages, hours of work, or as to safety, 
health, sanitary or general working conditions, or insurance, or fire 
protection, than are imposed by this Code. 

Section 5. 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. 



48 

Section 6. The ])rovisinris of this Code frovornino; lionrs of labor, 
rates of pny. and other coiulitions of einploymeiit shall apply to all 
persons who would ordinarily be classed as employees in the indus- 
try, and no employer shall exempt any such person from said pro- 
visions because he is related to the employer, or for any other reason. 

Section 7. Waijes shall be exempt from fines; and from charges 
and deductions, except char^jes or deductions coverinG: employees' 
voluntary contributions to pension, insurance or benefit funds; and 
no employer shall withhold washes except upon service of leccnl 
process or other papers lawfully requirinjx the same. Deductions 
for other jMirposes not heretofore stated may be made only when 
the contract is in writinp; and is kept on file by the employer for six 
months after the termination of the contract. 

Section 8. Employers shall not change the method of payment of 
compensation or reclassify employees or duties of occupations per- 
formed by employees or discharge employees to reemplo}^ them at 
lower rates in order to defeat the ]iur])oses of the Act or the pro- 
visions of this Code, nor engage in any other subterfuge to effect 
the defeat of such purposes or provisions. 

Section 9. Wlienever the minimum rates adopted by this Code 
result in decreasing differentials existing between different classes 
of employees on June 15, 1933, there shall be an equitable adjust- 
ment in order to maintain such differentials as of said date. In no 
case shall hourly Avage rates be reduced. 

Section 10. Employers shall make payment of all wages in law- 
ful currency or by negotiable checks payable on demand. All con- 
tracts of employment shall prescribe payment of wages at least 
semimonthly. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

Section 1. To effectuate further the policies of the Act, supervise 
the operation of the Code, assure its observance, and carry out its 
provisions, the Pacific Coast Dried Fruit Council is hereby created 
and provision made for a Code Authoi'ity. 

Section 2. There shall be five (5) divisions of the council, namely: 

(a) "A" Division, to whicli shall be eligible as a member any 
member of the industry who during the fiscal years 1932 and 1933 
(and later fiscal years during which this' Code remains in effect), 
has ]:)acked an average of five thousand (5,000) tons or more of 
California dried fruits a year. 

(b) " B " Division, to which shall be eligible as a member any 
member of the industry regularly engaged in packing California 
dried fruits but who is not eligible to membership in "A" Division. 

(c) " C " Division, to which shall be eligible as a member any 
meml>er of the industry who shall be regularly engaged in packing 
dried or dehydrat<'d California aj^ples. 

(d) "D" Division, to which shall be eligible as a member any 
member of the industry regularly engaged in packing dehydrated 
bleached raisins. 

(e) "E" Division, to which shall be eligible as a member any 
member of the industry regularly engaged in packing dried fruits 
produced in Oregon, Washington or Idaho. 



49 

A fiscal year wherever referred to in this Article means a full 
twelve months' period ending June 30 of the calendar year. 

Section 3. Any member of the industry may become a member of 
any division in which such person is eligible to membership upon 
Aviitten application addressed to the Code Authority. Until the 
Code Authority is organized such application may be made to the 
person at the time Secretary of Dried Fruit Association of Cali- 
fornia or to the person at the time Secretary of Northwest Dried 
Fruit Association. Any person eligible and desiring to become a 
member of more than one division may do so. 

Sectiox 4. The members of each division having a majority of the 
votes in such division may by their vote or written approval adopt 
by-laws for such division, fixing the time and place for meetings of 
members of that division or of its Board of Directors and the notice 
to be given of any such meetings, fixing the number of directors 
who shall constitute the Board of Directors of such division and 
providing for the election thereof, defining the powers and duties 
of such Board of Directors, the manner in which members of the 
Code Authority to be elected by the mem^bers of such division shall 
be elected, providing for the formulation and submission for ap- 
proval by the Administrator and/or the President of any Code of 
Fair Competition supplementary thereto, which shall govern mem- 
bers of that division, providing the manner in which the by-laws of 
the division may be amended, and for any other matters that may 
appropriately be provided for in such by-laws, provided that such 
by-laws and any such supplementary Code shall in all cases be con- 
sistent with the provisions of this Code, and subject to the approval 
of the Administrator. 

Section 5, A Code Authority is hereby established consisting of 
fifteen (15) persons, to be selected in the following manner: Nine 
(9) members shall he elected by members of the A Division, twq 
(2) bv members of the B Division, one (1) by members of the C 
Division, one (1) by members of the D Division, and two (2) by 
members of the E Division. In voting for members of the com- 
mittee or for members of the Board of Directors of the A Division, 
or upon any other matter, any member of the A Division who during 
the fiscal year last expired has packed fifteen thousand (15,000) tons 
or more of dried fruits shall be entitled to cast three (3) votes and 
any other member of that di\'ision shall be entitled to cast two (2) 
votes; provided that in any such election each member of the A 
Division shall have the right to cumulate its votes and give one (1) 
candidate a number of votes equal to the number of members of 
the committee, or (as the case may be) of directors of A Division, 
to be elected by the A Division, multiplied by the number of votes 
to which such member is entitled or to distribute its votes on the 
same principle among as many candidates as the member desires. In 
voting for members of the committee or for directoi-s of a division, 
or upon any other matter, each member of any division other than 
the A Division shall have one (1) vote. If any question shall arise 
as to the tonnage packed during any fiscal year by any member of 
the A Division, it shall be settled by the supervisor who shall have 
full access to all books and records of such member relating to the 
matter and the decision of the supervisor thereon shall be final, sub- 
ject to the disapproval of the Administrator. 



50 

Sectiox 6. In addition to meniborsliip as above provided, there 
mav be one (1) to three (3) members, without vote, to be known as 
Administration members, to be appointed by the Achninistrator, for 
such terms as he may specify, and to serve without expense to the 
industry. 

Section 7. In order that the Code Authority shall at all times be 
truly representative of the industry and in other respects comply 
witli the provisions of the Act, the Administrator may prescribe 
such hearings as he may deem proper; and thereafter if he shall 
find that the Code Authority is not truly representative or does not 
in other respects comply with the provisions of the Act, may require 
an appropriate modification in the method of selection of the Code 
Authority. 

Section 8. Nothing contained in this Code shall constitute the 
members of either the council or 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. 9. If the Administrator shall at any tune 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 aiford an oppor- 
tunity for investigation of the merits of such action and further 
consideration by such Code Authority or agency pending final action 
which shall not be effective unless the Administrator 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 10. Subject to such rules and regulations as may be 
issued by the Administrator, the Code Authority shall have the 
following poAvers 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 subject to this Code shall furnish such 
statistical information as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the Act to such Federal 
and State agencies as he may designate; provided that nothing in 
this Code shall relieve any member of the industry of any existing 
obligations to furnish reports to any Government agency. No indi- 
vidual report shall be disclosed to any other member of the industry 



51 

or any other party except to such other Governmental agencies as 
may be directed by the Administrator. 

(d) It being found necessary in order to support the administra- 
tion of this Code and to maintain the standards of fair competition 
establislied hereunder and to effectuate the policy of this Act, the 
Code Authority is authorized; 

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

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

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

Each member of the industry shall pay his or its equitable con- 
tribution to the expenses and maintenance of the Code Authority, 
determined as hereinabove i^rovided, and subject to the rules and 
regulations pertaining thereto issued by the Administrator. Only 
members of the industry complying with the Code and contributing 
to the expenses of 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. 

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. 

(e) To appoint sub-committees (whose members may be members 
of the industry committee and/or other persons) and to confer upon 
or delegate to any such sub-connnittee or to the supervisor the right 
to exercise any right or power which the committee might exercise. 
Any action by any such sub-committee or by the supervisor pursuant 
to authority granted by the committee and in conformity with any 
conditions prescribed by the committee shall be deemed the action 
of the committee. Tlie committee may, however, require that any 
action of any sub-committee or of the supervisor shall be reported 
to and approved by the committee before having effect. 

(f ) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein, provided that nothing herein shall relieve the Code Authority 
of its duties or responsibility under this Code and that such trade 



52 

associations and a<roncics sliall at all timos be subject to and comply 
with the provisions hereof. 

(g) To appoint a supervisor and such other officers or employees 
as it may deem proper, to define their powers and duties and fix 
their compensation which compensation may be paid by the Com- 
mittee out of funds of the council. 

(h) To arbitrate, settle and determine (or provide for the arbi- 
tration, settlement and determination of) any question or contro- 
versy that may arise between members of the industry ao;i'eeini2; to 
such arbitration, settlement or determination, or between any mem- 
ber of the industry and any other person agreeing; to such arbitra- 
tion (or other method of settlement or determination), in any way 
relatinoj to the provisions of operation of this Code. Any decision, 
determination or award made by or as provided for by the Com- 
mittee shall be final and binding. 

(i) To appoint a trade practice committee which shall meet with 
the trade practice committees appointed under such other codes as 
may be related to the industry for the purpose of formulating fair 
trade practices to govern the relations 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 amendment to 
this Code and such other codes. 

(j) To conduct, manage and control the property, funds and af- 
fairs of the council. 

(k) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the industry in their relation 
with each other or with other trades or industries. 

Article VII — Trade Practice Kules 

Seciton 1, The following shall constitute unfair methods of com- 
petition and the same are hereby prohibited : 

(a) Cancelling or permitting cancellation in whole or in part of 
any sale of dried fruits as a method of guaranteeing against price 
decline or of granting secret rebates. Any cancellation following 
a price decline shall within 24 houi^s be reported to the Code Au- 
thority with the reason therefor. 

(b) The defamation of competitors by falsely imputing to them 
questionable credit standing or inability to perform contracts or 
by other false representation, with the purpose to mislead trade 
buyers or prospective trade buyers. 

(c) Making t>r giving to a trade buyer of dried fruits any guar- 
anty or protection in any form or by any device against decline in 
the market price thereof or in the sellers price therefor, or making 
or giving to any such trade buyer any reduction in price, allowance 
or other adjustment not authorized or permitted by the Adminis- 
trator on account of any decline in the market pnce or the seller's 
])rice for such product. 

(d) Making or giving to any trade buyer any guaranty or pro- 
tection against the prices of any other member of the industry. 

Section 2. All sales of dried fruits by members of the industry 
shall be made on the terms of such uniform contracts as shall be 



53 

prescribed by the Code Authority and approved by the Administra- 
tor. Unless and until other terms or forms of contract are so pre- 
scribed for a particular type of sale, the forms of contract to be 
used on such sales shall be those applicable to the appropriate mode 
and condition of sale designated in Schedule A attached hereto and 
by this reference made a part hereof. The terms and provisions of 
said contracts, and each of them^ and any subseciuent changes when 
approved in the manner prescribed above shall be filed with the 
Administrator and the Code Authority and shall be available for 
public inspection. Provided, however, that any member of the in- 
dustry not entitled to obtain inspection of the goods sold (by Dried 
Fruit Association of California, or, as the case may be, by North- 
west Dried Fruit Association) may in any sale of such goods provide 
that a certificate of inspection issued by any other competent neutral 
inspector or inspection agency specifically named in such sale, shall 
be a substitute for the certificate of inspection referred to in the 
applicable form of contract set forth in Schedule "A", and any 
member of the industry not entitled to demand arbitration before 
the Arbitration Board of Dried Fruit Association of California or 
(as the case may be) of Northwest Dried Fruit Association may in 
any sale by such member provide for such arbitration by or as di- 
rected by the Code Authority. Nothing herein contained is intended 
to or sliall prohibit open billing of shipments made by truck or of 
shipments to points in domestic territory westerly of the easterly 
lines of Idaho, Utah and Arizona, it being frequently impracticable 
to arrange presentation of documents for collection before arrival 
of shipments within this territory. 

Section 3. The provisions of this Code relating to sales practices 
and sales terms shall not apply to sales or like transactions both 
parties to which are members of the industry regularly engaged in 
packing dried fruits and neither party to which is regularly engaged 
in business as a wholesale or retail grocer. 

Section 4. Nothing contained in this Code shall be deemed to pro- 
hibit or prevent performance by any member in accordance with its 
terms of any contract to which such member is a party in force at 
the effective date of this Code. 

Article VIII — Modification 

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

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



54 

AirricLi: IX — Monopoi.tf.s 

No provision of this Code shall bo so ap]')li(Hl as to permit nionopo- 
lies or monopolistic practices or to eliminate, oppress or disr-riminate 
against small enterprises. 

Article X — Effkctive Date 

This Code shall become effective on the tenth day after its 
approval by the Administrator. 

Approved Code No. 546. 
Registry No. 121-05. 



SCHEDULE A 

(1) California Dried Fruit Contract (Water Shipment) adopted June 2, 
1919, with revision to July 18, 1927, by National Wholesale Grocers' Associa- 
tion of the United States and Dried Fruit Association of California. 

(2) California Dried Fruit Contract (Rail Shipment) adopted April 23, 
1919, with revision to July 18, 1927, by National Wholesale Grocers' Associa- 
tion of the United States and Dried Fruit Association of California. 

(3) Uniform California Pacific Coast Export Dried Fruit Contract, effective 
September 1, 1928, with revisions to October 2, 1930, adopted by California 
Dried Fruit Export Association, such form being " intended solely for use 
between buyers and sellers in California in export trade." 

(4) Export Dried Fruit Contract, adopted by Dried Fruit Association of 
California and California Dried Fruit Export Association, Form A, effective 
October 1st, 1926. 

(5) Export Dried Fruit Contract, adopted by Northwest Dried Fruit Associa- 
tion and Northwest Dried Fruit Export Association, Form A, effective September 
1, 1927. 

(6) Uniform Northwest Pacitic Coast Export Dried Fruit Contract, adopted 
by the Northwest Dried Fruit Export Association, effective June 21, 1930, 
with revision to July 8, 1932. 

(7) Memorandum of Purchase and Sale, adopted by Dried Fruit Association 
of California, and California Dried Fruit Export Association, effective April 15, 
1926. 

(8) Latin-American Dried Fruit Contract adopted by Dried Fruit Associatiou 
of California and California Dried Fruit Export Association, Form A, effective 
March 1, 1931. 

(9) Latin-American Dried Fruit Contract adopted by Dried Fruit Associa- 
tion, and Northwest Dried Fruit Export Association, Form A, effective May 
27, 1931. 

(10) Northwest Dried Fruit Contract for Water Shipment, effective June 2, 
1929, with revision to July 8, 1932, adopted by National Wholesale Grocers' 
Association of the United States and Northwest Dried Fruit Association. 

(11) Northwest Dried Fruit Contract (Rail Shipment) adopted May 13, 
1919, with revision to July 8, 1932, by National Wholesale Grocers' Association 
of the United States and Northwest Dried Fruit Association. 

(12) Northwest Dried Fruit Association Uniform Dried Fruit Contract (Rail 
Shipment) adopted May 13, 1919 (amended July 29, 1927) by National Whole- 
sale Grocers' Association of the United States and Northwest Dried Fruit 
Association. 

o 



(55) 



Approved Code No. 547 
CODE OF FAIR COMPETITION 

FOR THE 

SEED TRADE 

As Approved on February 2, 1935 



ORDER 



Code of Faik Competition for the Seed Trade 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Seed Trade, 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, the National Industrial Recovery Board, pursuant to 
authorit}' vested in it by Executive Orders of the President, includ- 
ing Executive Order No. 6859, and otherwise, does hereby incorporate 
by reference said annexed report and does find that said code com- 
plies in all respects with the pertinent provisions and will promote 
the policies and purposes of said title of said act; and does hereby 
order that said Code of Fair Competition be and it is hereby ap- 
proved; provided, however, that the provisions of Article VII, 
Sections 6 and 7 be and they are hereby stayed pending further 
order of the National Industrial Recovery Board. 

National Industrial Recovery Board, 
By W. A. Harriman, 

Adnuiilstratlve Officer. 
Approval recommended : 

Armin W. Riley, 

Division Administrator. 

Washington, D. C, 

Fehniary 2, 1935. 

113400°^ 157:5-15 35 (57) 



REPORT TO THE PRESIDENT 

The Presidext, 

The 'WMte House. 
Sir : This is the report of the National Industrial Recovery Board 
on the Code of Fair Competition for the Seed Trade and on the 
Public Hearing held in Washington, D. C, on July 11, 1934, in ac- 
cordance with the provisions of the National Industrial Recovery 
Act and the Executive Order dated June 2G, 1933, and otherwise. 

GENERAL 

The functions of this trade are the processing and/or distribution 
of seeds at wholesale and/or retail, except the clistribution at retail, 
by retail dealers, of seeds in packets or cartons of eight ounces or 
less. 

The Code Committee representing this trade testified, at the formal 
hearing, as having received the necessary authority and proper in- 
structions to represent the trade and that it was truly representative. 

On the basis of figures contained in the Census of Distribution for 
1929, it is estimated that there are approximately 13,000 employees 
in the trade. It is further estimated that the sale of seeds at retail 
totaled $150,000,000 in 1929. 

It is estimated that the net effect of this Code, as compared with 
conditions obtaining in the trade in June 1933, will be an approxi- 
mate ten per cent increase in employment and an approximate seven- 
teen per cent increase in the total wage bill paid by the trade. 

The Code Authority will be elected by a method which insures 
equitable representation for all members of the trade. 

PROVrSIOXS AS TO HOURS 

The Code provides a forty (40) hour work week with the follow- 
ing exceptions : 

(a) Employees in retail seed stores are permitted to work the same 
number of hours as are provided for retail store employees under the 
Code of Fair Competition for the Retail Trade approved October 
21, 1933. 

(b) Persons employed in managerial, executive or supervisory ca- 
pacities Avho regularly receive not less than $35.00 per week, and out- 
side salesmen and buyers are not restricted as to the maximum num- 
ber of liours they may be permitted to work. 

(c) Watclimen are permitted to work not more than fifty-six (5G) 
houj-s in any week. 

(d) Engineers, firemen, and shipping clerks are permitted to woik 
not more than forty-four (44) hours in any week, unless they are 
paid at the rate of time and one-third for all hours worked in excess 
of forty-foui- (44) hours in any week or nine (9) hours in any day. 

(58) 



59 

Under no conditions will sucli employees be perndtted to work more 
than fifty-two (52) hours in any week, 

(e) Outside service employees are permitted to work not more 
than forty-eight (48) hours in any week unless they are paid at the 
rate of time and one-third for all hours worked in excess thereof. 

(f) During a period of not exceeding fourteen (14) weeks in 
any one j-ear, employees may be permitted to work eight (8) hours 
per week more than the maximum hours prescribed in Sections 1 
and 2 of Article III, but in no event shall they be permitted to 
work more than fifty-two (52) hours in any work week. All such 
hours worked in excess of such maximum hours shall be compensated 
for as follows : 

(1) At the hourly rates prescribed in Section 1 of Article IV, if 
the emjDloyee is paid on an hourly basis. 

(2) At an hourly rate corresponding to the weekly rates for a 
40-hour week as prescribed in (a), (b) and (c) of Section 2 of 
Article IV, if the employee is paid on a weekly basis. 

(g) Employees engaged in emergency maintenance or emergency 
repair work are permitted to work in excess of forty (40) hours 
in any work week, provided they shall be paid not less than at the 
rate of one and one-third times their normal hourly rates, for all 
such excess hours. 

PROVISIONS AS TO WAGES 

1. Minimum wage rates are as follows : 

(a) Clerical, accounting and other office employees and retail 
store employees: 

$14.00 per 40 hour week in cities of over 500,000 population. 

$14.50 per 44 hour week in cities of over 500,000 population. 

$15.00 per 48 hour week in cities of over 500,000 population. 

$13.00 per 40 hour week in cities of from 100,000 to 500,000 popu- 
lation. 

$13.50 per 44 hour week in cities of from 100,000 to 500,000 popula- 
tion. 

$14.00 per 48 hour week in cities of from 100,000 to 500,000 popula- 
tion. 

$12.00 per 40 hour week elsewhere, except as provided in Section 
7, Article V. 

$12.50 per 44 hour week elsewhere, except as provided in Section 
7, Article V. 

$13.00 per 48 hour week elsewhere, except as provided in Section 
7, Article V. 

(b) Other employees, except those engaged in light work: 
400 per hour in cities of over 500,000 population. 

371/20 per hour in cities of from 100,000 to 500,000 population. 
350 per hour elsewhere. 

(c) Employees engaged in light work, such as hand-picking, sort- 
ing, packaging, and hand-addressing. 

32^20 per hour in cities of over 500.000 population. 

300 per hour in cities of from 100,000 to 500,000 population. 

271/40 per hour elsewhere. 

2. Watchmen shall be paid not less than at the rate of $16.00 per 
week. 



60 

3. In the South, minimum wage' rates shall be five cents (5^) 
per hour less than the rates specified in (b) and (c) above, and 
$1.00 less per week than the rates specified in (a) above. 

4. Female emplojees performing substantially the same work as 
male employees shall receive the same rate of pay as male employees. 

5. The weekly wages of all employees receiving more than the 
minimum wages specified in this Article shall not be reduced below 
the rates existing on June 1, 1933, notwithstanding anj' reduction 
in the number of hours of such employees. 

This Code prohibits the em})loyment of any person under sixteen 
(16) years of age. It also prohibits the emploj'ment of any person 
under eighteen (18) years of age at occupations hazardous and/or 
detrimental to health. 

COMPLIAXCE WITH MANDATORY PIIO\T[SIONS 

The Deputy Administrator in his final report to the National 
Industrial llecoverj^ Board on said Code having found as herein set 
forth and on the basis of all the proceedings in this matter : 

The National Industrial Recovery Board finds 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 j^ction 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 production capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural ]n'oducts through increasing purchasing power, by reducing 
and relieving unemplojmient, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said trade normally employs not more than 50,000 employees; 
and is not classified by the National Industrial Recovery Board as 
a major industry. 

(c) The Code as approved complies in all rcsi^ccts 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 a trade group truly representative of the aforesaid trade ; and that 
said group imposes no inequitable restrictions on admission to mem- 
bership 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. 



61 

Accordingly, it recommends the approval of the Code of Fair 
Competition for the Seed Trade to the extent of its jurisdiction as 
stated in voiir Executive Orders No. 6551 of January 8, 1934, and 
No. 6859 of September 27, 1934. 

For the National Industrial Recovery Board : 

W. A. HApjiiMAisr, 
Administrative OjjiceT. 
February 2, 1935. 



CODE OF FAIR COMPETITION FOR THE SEED TRADE 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Re- 
covery Act; this Code is established as a Code of Fair Competition 
for the Seed Trade and its provisions shall be the standards of fair 
competition for such trade and shall be binding upon every member 
thereof. 

Article II — Definitions 

As used herein : 

Section 1. (a) The term " President " means the President of the 
United States. 

(b) Tile term "Act " and "National Industrial Recovery Board " 
or " Board " mean, respectively, Title I of the National Industrial 
Recovery Act and the National Industrial Recovery Board. 

(c) The term " seed trade " means and includes the processing 
and/or distribution of seeds at Avholesale and/or retail, except the 
distribution at retail, by retail dealers, of seeds in packets or cartons 
of eight ounces or less. Nothing herein shall affect or prevent a 
person from growing, processing, trading, or marketing the produce 
of his farm. 

(d) The term " seeds " means farm seeds (including field and 
grass seeds) and garden seeds (including vegetable and flower seeds) 
for planting purposes. 

(e) The term " farm seeds " means the seeds intended for planting 
purposes, of legumes, grasses, cereals, and other field crops ordinarily 
produced on farms, excluding vegetable and flower seeds. 

(f) The term "member of the trade" means any person engaged 
in the seed trade, either as an employer or on his own behalf. 

(g) The term " processing " means milling, cleaning, hand pick- 
ing, packaging, or otherwise preparing seeds for distribution. 

(h) The term ''distribution" means buying and selling seeds for 
planting purposes. 

(i) The term "employee" means any and all persons engaged 
in the trade, however compensated, except members of the trade. 

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

(k) The term " watchman " means any employee whose principal 
function is that of safeguarding the premises and property of an 
establishment of a member of the trade. 

(1) The term " buyer " means any employee when engaged in 
buying operations outside of the establishment. 

(m) The term "outside salesman" means any employee who per- 
forms primarily outside selling functions. 

(n) The term " outside service employee " means any employee 
engaged primarily in delivering or servicing merchandise outside the 
establishment. 

(62) 



63 

(o) The term " State " means and includes Territories and the Dis- 
trict of Goknnbia. 

(p) The term " South '' means and includes Maryland, District 
of Columbia, Virginia, West Virginia, North Carolina, South Caro- 
lina, Georgia, Florida. Alabama, Mississippi, Louisiana, Tennessee, 
Kentucky, Arkansas, Oklahoma, and Texas. 

Section 2. Population shall be determined by reference to the latest 
Federal Census. 

Article III — Hours 

Sectiox 1. No employee except as otherwise herein provided shall 
be permitted to work in excess of forty (40) hours in any week or 
more than nine (9) hours in any day or more than six (6) days in 
any week. 

Section 2. Retail seed stores shall either comply with the pro- 
visions of Section 1 of this Article as to hours of labor, or shall elect 
to ojDerate upon one of the following schedules of store hours and 
hours of labor : 

Group A. Any establishment may elect to remain open for busi- 
ness less than fifty-six (56) hours, but not less than fifty-two (52) 
hours each week, unless its store hours were less than fifty-two (52) 
hours prior to June 1st, 1933, in which case such establishment shall 
not reduce its store hours; no employee of such establishments shall 
be permitted to work in excess of forty (40) hours in any week, 
nor more than eight (8) hours in any day, nor more than six (6) 
days in any week. 

Group B. Any establishment may elect to remain open for busi- 
ness fifty-six (5G) hours or more each w^eek, but in no event more 
than sixty-three (63) hours in any week; no employee of such estab- 
lisliment shall be permitted to work in excess of forty-four (44) 
hours in any week, nor more than nine (9) hours in any day, nor 
more than six (6) days in any week. 

Group C. Any establishment may elect to remain open for busi- 
ness sixty-three (63) hours or more each week; no employee of such 
establishment shall be permitted to work in excess of forty-eight 
(48) hours in any week, nor more than ten (10) hours in any day, 
nor more than six (6) days in any week. 

Section 3. The maximum periods of labor prescribed in this Arti- 
cle shall not apply to persons employed in managerial, executive, or 
supervisory capacities who regularly receive not less than $35.00 
per week; nor to outside salesmen or buyers. 

Section 4. Watchmen shall not be permitted to work more than 
fifty-six (56) hours nor more than (6) days, in any week. 

Section 5. The maximum periods of labor prescribed in Sec- 
tion 1 of this Article shall not apply to engineers or firemen or to 
shipping clei'ks, but such employees shall not be permitted to work 
more than forty-four (44) hours in an}^ week unless they are paid 
at the rate of time and one-third for all hours in excess of forty- 
four (44) hours in any week or nine (9) hours in any day. In no 
case shall such emploj^ees be permitted to work in excess of fifty- 
two (52) hours in any week. 

Section 6. The maximum periods of labor prescribed in Section 1 
of this Article shall not apply to outside service employees, but such 

113466° 1573-15 35 2 



64 

omployee? shall not be permitted to work more than forty 'ei<]jht (48) 
jioursiii any week unless they are paid at the rate of time and one- 
third for all hours worked in excess thereof. 

Section 7. During a period of not exceeding fourteen (14) weeks 
in any one year, employees may be permitted to work eight (8) hours 
per week more than the maximum hours prescribed in Sections 1 
and 2 of this Article, but in no event shall they be permitted to work 
more than fifty-two (-2) hours in any one week'. AH such houTS 
Avorked in excess of such maxinnun hou.rs, shall be compensated for as 
follows : 

(a) At the hourly rates prescribed in Section 1 of Article IV, 
if the employee is paid on an hourly basis. 

(b) At an hourly rate corres))onding to the weekly rates for a 
40-hour week as prescribed in (a), (b), and (c) of Section 2 of 
Article IV, if the em])loyee is paid on a weekly basis. 

The maximum hours and rates of pay set forth in this Section 
shall not apph- to those employees namecl in Sections 5 and 6 of this 
Article. 

Section 8. Emplo^'ees engaged in emergency maintenance or emer- 
gency repair work may be permitted to work in excess of the maxi- 
mum hours prescribed in this Article ; provided, however, that for all 
such hours so worked in excess of the maximum, their compensation 
shall not be less than at the rate of one and one-third times their 
normal hourl}^ rates. 

Section 9. Xo employer shall permit any employee to work for 
any time, which when added to the time spent at work for another 
emploj-er or em])loyers in this trade or otherwise, exceeds the maxi- 
mum permitted herein. 

Article IV — Wages 

Section 1. Xo employee shall be paid in any pay period less than 
at the following rates, except as herein otherwise provided : 

(a) In cities of over 500,000 population, and within the immediate 
trade areas thereof, employees shall be paid not less than at the rate 
of forty cents (40<') ])er hour; except that employees engaged in 
light work, such as hand-picking, sorting, packaging, and hand- 
addressing shall be paid not less than at the rate of thirty-two and 
one-half cents (32i/)(') per hour. 

(b) In cities of from 100,000 to 500,000 poi)ulation, and within 
the immediate trade areas thereof, employees shall be paid not less 
than at the rate of thirty-seven and one-half cents (371/2*?^) per hour; 
except that employees engaged in light work, such as hand-picking, 
sorting, packaging, and hand-addressing shall be paid not less than 
at the rate of thirty cents (300) per hour. 

(c) Elsewhere employees shall be p^iid not less than at the rate 
of thirty-five cents (35^) per hour; excei)t that employees engaged in 
light work such as hand-picking, sorting, packaging, and hand- 
addressing shall be paid not less than at the rate of twentj^-seven 
and one-half cents (27i/^0) per hour. 

Section 2. Clerical, accounting, and other office employees and 
retail-store employees shall be paid not less than at the following 
rates, irrespective of whether such wagps shall be paid upon an 
hourly, weeKly, monthly, connnission or other basis: 



65 

i ;(a) In cities of over 500,000 population, and within the immediate 
trade areas thereof, no such employee shall be paid less than at the 
rate of $14.00 per week for a 40-hour week, or less than at the rate 
of $14.50 per week for a 44-hour week, or less than at the rate of 
$15.00 per week for a 48-hour week. 

(b) In cities of from 100.000 to 500,000 population, and within the 
immediate trade areas thereof, no such employee shall be paid less 
than at the rate of $Ki.OO per week for a 40-hour week, or less than 
at: the rate of $13.50 per week for a 44-hour week, or less than at the 
rate of $14.00 per week for a 48-hour week. 

(c) Elsewhere, except as provided in Section 7 of Article V, no 
employee shall be paid less than at the rate of $12.00 per week for a 
40-hour week, or less than at the rate of $12.50 per week for a 44-hour 
week, or less than at the rate of $13.00 for a 48-hour week. 

Section 3. Office boys and messengers may be paid not less than 
at a rate of $2.00 per week below the minimum provided in Section 
2 of this Article ; provided, that where more than one such office boy 
or messenger is enjployed, the number of such employees shall not 
exceed five per cent (5%) of the total number of office employees of 
any employer. 

Section 4, Watchmen shall be paid not less than at the rate of 
$16.00 per week. 

Section 5. In the South, minimum wage rates shall be five cents 
(5^) per hour less than the rates prescribed in Section 1 of this 
Article, and the minimum wages prescribed in Sections 2 and 3 
of this Article shall be at the rate of $1.00 less per week. 

Section 6. Female employees performing substantially the same 
w^ork as male employees shall receive the same rate of pay as male 
employees. 

Section 7. The weekly wages of all employees receiving more than 
the minimum wages specified in this Article shall not be reduced be- 
low the wages existing on June 1, 1933, notwithstanding any reduc- 
tion in the number of working hours of such employees. 

Section 8. This Code establishes a minimum rate of pay regard- 
less of whether the employee is actually compensated on a time rate 
or piecework or other basis. 

Section 9. Persons whose earning capacities are limited because 
of age, physical, or mental handicap or other infirmity, may be 
employed on light work, at wages below the minimum established 
by this Code, if the employer obtains from the State authority, desig- 
nated by the United States Department of Labor, certificates author- 
izing such persons' emplo3"ment at such wages and for such hours as 
shall be stated in the certificates. Such authority shall be guided 
by the instructions of the United States Department of Labor in 
issuing certificates to such persons. Each emploj^er shall file monthly 
with the Code Authority a list of all such persons employed by him, 
showing the wages paid to, and the maximum hours of work for, 
such employees. 

Section 10. Wages shall be exempt from fi_nes and rebates, and 
from charges or deductions, except for employees' voluntary con- 
tributions for pensions, insurance or benefit funds, or for payment for 
seeds purchased from emploj^ers. No employer shall withhold wages 
except upon service of legal process or other papers lawfully requir- 



66 

in^ siicli •withholdinfj. Deductions for other purpose? may be made 
only -when the contract therefor is in writin<r. which contract shall be 
kept on file by tlie enijiloyer. for a period of six (G) months, o))en to 
the inspection of the lioard or its duly authorized representative. 

Sfxtiox 11. Employers shall make payment of all Avaoes due, in 
lawful currency or by negotiable checks, payable on demand. AH 
contracts of employment shall prescribe payment of wages at least 
twice a month. 

Article V — General Laijor Provisions 

Section 1. Xo person under sixteen (IC) years of age shall be 
cmj)loyed in the trade. Xo person under eighteen (18) years of age 
shall be emphwed at o])erations or occupations which are hazardous 
in nature or dangerous to health. The Code Authority shall submit 
to the Board within thirty (30) da3^s after the effective date of this 
Code, a list of such operations or occupations. In any State an em- 
ployer shall be deemed to have complied with this provision as to age 
if he shall have on file a certificate or a permit 'duly issued by the 
Authority in such State empowered to issue employment or age 
certificates or permits showing that the employee is of the required 
age. 

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

(b) No employee and no one seeking employment shall be re- 
quired as a condition of emploj^ment to join any company union 
or to refrain from joining, organizing or assisting a lahor organiza- 
tion of his own choosing;, and 

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

Section 3. Xo employer shall change the method of ])ayment of 
employees' compensation or reclassify employees or duties of oc- 
cupations performed or discharge employees for the purpose of re- 
employing them at lower rates in order to defeat the purposes of 
the Act or the provisions of this Code, nor engage in any other 
subterfuge to effect the defeat of such purposes or provisions. 

Section 4. Xo provisions in this Code shall supersede any laAV 
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 5. All employers shall post and keep posted complete 
copies of this Code in conspicuous places accessible to all employees. 
Every member of the trade shall comply with all rules and regu- 
lations relative to the posting of provisions of Codes of Fair Com- 
petition, which may, from time to time, be prescribed by the Board. 

Section 6. Each emploj^er shall provide for the safety and health 
of the employees during the hours or at the places of their em- 



67 

ployment. Standards for safety and health shall be submitted by 
the Code Authority to the Board within six (6) months after the 
effective date of this Code. 

Section 7. Emploj-ers engaged only locally in retail trade who 
operate not more than three establishments and whose place or places 
of business is or are located in a town or towns each of less than 
2500 population, and not in the immediate trade area of a city or 
town of larger population, as determined by the Board, are exempted 
from the provisions of this Code which relate to hours of employ- 
ment, rates of pay, the minimium prices at which merchandise may 
be sold or services performed, and the collection of assessments, ex- 
cept insofar as any such employer shall signify to the Board his or 
its intention to be bound by such provisions. All such emploj^ers 
shall, however, be subject to all the other pro^dsions of this Code. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

a. organization and constitution 

Section 1. A Code Authority is hereby established consisting of 
seven members to be selected in the following manner : 

(a) One member of the Code Authority shall be chosen by the 
members of the trade in the States of California, Arizona, Oregon, 
Washington, Idaho, Utah and Nevada. 

(b) One member of the Code Authority shall be appointed by 
the Secretary of Agriculture to represent farmers' Cooperative or- 
ganizations. Such member shall be chosen by the Secretary from 
nominations submitted by bona fide and legitimate farmers' coopera- 
tive organizations. 

(c) The remaining five (5) members of the Code Authority shall 
be chosen by the members of the trade in the remainder of the United 
States in accordance with the following procedure : 

On the effective date of this Code the secretary of the American 
Seed Trade Association shall by mail notify every ascertainable 
member of the trade except those in the States of California, Arizona, 
Oregon, Washington, Idaho, Utah and Xevada that nominations 
will be received by him for such five (5) members of the Code 
Authority; in addition he shall cause such notice to be published in 
one or more trade papers of general circulation. Such notice shall 
plainly state a date not earlier than fifteen (15) days subsequent 
to the date of the mailing thereof, upon which date the nominations 
will be closed. Upon the closing of the nominations, the said secre- 
tary shall cause ballots to be prepared containing the names of all 
persons who shall have been nominated in accordance herewith by 
thirty (30) or more members of the trade. Such secretary shall 
thereupon mail said ballots to every ascertainable member of the 
trade except those in the aforesaid States of California, Arizona, 
Oregon, Washington, Idaho, Utah and Nevada. In compiling the 
names of persons to whom said notices and ballots are to be mailed, 
such secretary shall exercise due diligence to ascertain the names of 
all members of the trade. The date of the closing of the polls 



68 

pliall plainly n]'>]')ear upon said ballot and shall bo not less tlian 
tiftpcn (15) days after the date of the niailino; thereof. Upon the 
closinir of the |)olIs. such secretary shall, in the ])resence of at least 
tAvo disint-erested witnesses, open the ballots received and count the 
same. The five (5) persons receiving the highest number of votes 
shall be declared elected. Thereupon, such secretary shall immedi- 
ately certify, under oath, and attested by such witnesses, the results 
of said election to the Board for its approval, accompanied by the 
originals of the nominations and ballots received, together with a 
list of the names of all persons to whom said notices and ballots were 
sent. 

(d) In the case of the member to be elected by the members of 
the trade in the States of California, Arizona, Oregon, Washington, 
Idaho, Utah and Nevada, the procedure contained in subsection (c) 
above shall likewise be followed for the election of the member from 
such States, except that in such case the secretary of the Pacific 
States Seedsmens Association shall perform the functions required 
of the secretary mentioned in said subsection (c). 

Section 2. All members of the Code Authority shall hold office 
for one year from the date of their election or until their respective 
successors are elected and qualified. 

The Code Authority shall formulate and submit to the Board 
for approval, within six (G) months after taking office, a plan for 
the election, under its supervision, of all future Code Authorities. 

Section 3. An}' vacancy occurring in the membership of the Code 
Authority shall be filled for the unexpired term by the vote of the 
remaining members thereof, except that a vacancy in the seat of the 
representative of farmers' cooperative organizations shall be filled b}'' 
the Secretary of Agriculture in the manner provided for the appoint- 
ment of such representative, and except that a vacancy in the seat 
of the representative of the members of the trade in the States of 
California, Arizona, Oregon, Washington, Idaho, Utah and Nevada 
shall be filled in the manner provided for the election of such 
representative. 

Section 4. In addition to membership, as above provided, there 
may be from one to three members, without vote, to be known as 
Administration Members, to be appointed by the Board to serve for 
such terms as it may specify. 

Section 5. Each trade association directly or indirectly partici- 
pating in the selection or activities of the Code Authority shall (1) 
impose no inequitable restrictions on membership, and (2) submit 
to the Board true copies of its articles of association, by-laws, regu- 
lations, and any amendments when made thereto, together with such 
other information as to membership, organization, and activities as 
the Board may deem necessary to elfectuate the purpose of the Act. 

Section 6. In order that the Code Authorit}' shall at all times be 
truly representative of the trade and in other respects comply with 
the provisions of the Act, the Board may prescribe such hearings as 
it may deem proper; and thereafter if it shall find that the Code 
Authority is not truly representative or does not in other respects 
comi)ly with the provisions of the Act, may require an appropriate 
modification of the Code Authority. 

Section 7. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor shall 



G9 

any member of the Code Authority be liable in any manner to any- 
one for any act of any other member, officor, agent, or employee of 
the Code Authority. Xor shall any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties here- 
under, be liable to an^'one for any action or omission to act under this 
Code, except for his oAvn v.ilful malfeasance or nonfeasance. 

Section 8. If the Board shall at any time determine that any ac- 
tion of a Code Authority or any Agency thereof may be unfair or 
unjust or contrary to the public interest, the Board 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 Board approves or unless it shall fail to disapprove after 
thirty (30) days' notice to it of intention to proceed with such action 
in its original or modified form. 

B. POWERS AND DUTIES 

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

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

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

(c) To obtain from members of the trade such information and 
reports as are required for the administration of the Code. In 
addition to information required to be submitted to the Code Au- 
thority, members of the trade subject to this Code shall furnish such 
statistical information as the Board may deem necessary for the 
purposes recited in Section 3 (a) of the Act to such Federal and 
State agencies as it may designate; provided that nothing in this 
Code shall relieve any member of the trade of any existing oblig-i- 
tions to furnish reports to any government agency. No individual 
report shall be disclosed to any other member of the trade or to any 
other party, 

(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 Board for the coordination 
of the administration of this Code with such other codes, if any, as 
may be related to or affect members of this trade. 

(f) 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 
Droper 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; 



70 

(l)b) To submit to the Board for its approval, subject to such 
notice and opportunit}' to be heard as it may deem necessary (1) an 
itemized budget of its estimated expenses for the foregoing pur- 
poses, and (2) an equitable basis upon which the funds necessary to 
support such budget shall be contributed by members of the trade. 

(cc) After such budget and basis of contribution have been ap- 
})roved by the Board, to determine and obtain etjuitable contribution 
as above set forth by all members of the trade, except those whose 
seed business constitutes less than twenty-five percent (25%) of the 
total dollar vohime of business done by such members in the pre- 
ceding calendar year, who are hereby exempted from making such 
contributions; and to that end, if necessary, to institute legal pro- 
ceedings therefor in its own name. 

Each member of the trade shall pay his or its equitable contribu- 
tion to the expenses of the maintenance of the Code Authority, de- 
tennined as hereinabove provided, and subject to rules and regula- 
tions pertaining thereto issued by the Board. Only members of the 
trade complying with the Code and contributing to the expenses 
of its administration as hereinabove provided shall be entitled to 
participate in the 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 ; 
provided, however, that no member of the trade shall thereby be 
deprived of the right to participate in the selection of the initial 
Code Authority. 

The Code Authority shall neither incur nor pay any obligation 
substantially in excess of the amount thereof as estimated in its ap- 
p-roved budget, and shall in no event exceed the total amount con- 
tained in the approved budget, except upon approval of the Board ; 
and no subsequent budget shall contain an}^ deficiency item for ex- 
penditures in excess of prior budget estimates except those which the 
Board shall have so approved. 

(g) To recommend to the Board any action or measure deemed 
advisable, including further trade practice provisions to govern 
members of the trade in their relation with each other or with other 
industries; measures for industrial planning and stabilization of em- 
ployment; and including modifications of this Code which shall be- 
come effective as part hereof upon approval by the Board after such 
notice and hearing as it 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 trade for the purpose of formulating 
fair trade practices to govern the relationshii)s between employers 
under this Code and such other codes to the end that such fair trade 
];ractices may be proposed to the Board as amendments to this Code 
and such other codes. 

(i) To provide appropriate facilities for arbitration, and subject 
to the ai^])roval of the Board, to prescribe rules of procedure and 
I'uk'S to effect compliance with awards and determinations. 

SrxTiON 10. The Code Authority is empowered to establish from 
time to time geographical divisions of the trade and to increase or 
decrease the number of such divisions, all subject to the approval of 
the Board. When any geographical division of the trade has been 



71 

established, the Code Aiithorit}^ shall supervise the election by the 
members of the trade in such division, of a E-efrional Code Authority. 
All members of the trade maintaining an office or a plant in such 
division sliall be entitled to vote for the members of the Regional 
Code Authority and to serve as members thereof. Regional Code 
Authorities, so created, shall have the right to advise the Code Au- 
thority in the admiiiistration of this Code on questions having local 
application and shall assist the Code Authority as directed by them 
in the administration of this Code; provided, however, that the Code 
Authority in delegating any powers, duties or functions to a Regional 
Code Authority shall not be relieved of any of its responsibilities 
under this Code. The Board shall have the right to designate one or 
more Administration members to serve without vote on each such 
Regional Code xiuthority. Any action pursuant to this paragraph 
shall be subject to approval by the Board. 

Article VII ^ — Unfair Methods of Competition 

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

Section 1. FaUe Advertising. — Publishing in any manner any 
false or intentionally misleading advertisement of any kind, or in- 
tentionally deceiving purchasers of seeds by furnishing ultimate 
consumers price lists represented to be merchants' or dealers' whole- 
sale price lists vrhich are not so in fact, or otherwise intentionally 
deceiving purchasers of seeds. 

Section 2. Misrepresentation. — In the sale or offer for sale of seeds 
falsely and fraudently misrepresenting the quality, quantity, purity, 
age, germination, origin, or variety of such seeds. 

Section 3. Certi-fi cation. — Using the terms " certified ", " regis- 
tered ", " verified ", or " verified origin ", in connection with the sale 
or offering for sale of seeds, excepting those so labeled b}' or under 
the authority of a duly authorized State or Federal Agency. 

Section 4. Breach of Contracts. — Maliciously inducing or attempt- 
ing to induce breach of existing contracts between competitors and 
their customers or members, or interfering with or obstructing the 
performance of any such contractual duties or services with the 
purpose or effect of unduly hampering, injuring, or embarrassing 
competitors in their business. 

Section 5. Sale of Chaff. — Selling the chaff of redtop, of Ken- 
tucky blucgrass, of orchard grass, of bent grass, or of fescue without 
having a written statement from the purchaser that it is not to be 
used for planting purposes or for mixture with seed for planting. 

Section 6. Guarantee of Farm Seed Prices. — Making or giving to 
anj' purchaser or prospective purchaser of farm seeds any guarantee 
or protection, in any form whatsoever, against the decline of price, 
either before or after delivery. 

Section 7. Cancellation of Farm Seed Orders. — Canceling or per- 
mitting the cancellation or rewriting of any contract of sale of farm 
seeds for the purpose, or with the effect of avoiding the accrual or 
collection of any carrying or transportation charges, or any market 
loss which the seller would suffer through the buyer's failure' to fulfill 



1 See paragraph 2 of order approving this Code. 



72 

his contract or othorwipe rebating any part of tlie conti-act price. 
Nothing herein contained shall be construed to prevent the payment 
of patronage dividends by cooperative organizations. 

Section 8. Unauthorized Shipment of Packet Seeds. — Shipping 
or delivering vegetable or flovrer seeds in packets or cartons for re- 
sale on the commission plan, without a -written order signed by a 
purchaser or consignee. 

Section 9. Consignim-nt. — Shipping seeds on consignnient ex- 
cepting vegetable or flower seeds in packets or cartons of eight (8) 
ounces or less, and/or lawn grass in packages of ten (10) pounds 
or less for sale in the original container, and excepting such special 
cases as may have been submitted to the Board and approved by it. 

The term " consignment " as used herein means the placing of seeds 
in the possession of a consignee or in a warehouse for him to sell, 
to be paid for onW if and when sold. 

Nothing herein contained shall be construed to prevent the con- 
signment of seeds by cooperative organizations to associated coopera- 
tives or to their own members. 

Section 10. Warehousing. — Placing seed in a warehouse for sale 
to any person other than a wholesaler or retail merchant, unless sold 
by the member of the trade so placing said seed directly or through 
an employee ; provided, however, that nothing herein contained shall 
be construed to prevent a cooperative organization from warehous- 
ing seed to be sold by its associated cooperatives. 

Article VIII — Modifications 

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

Section 2. This Code, except as to provisions required by the Act 
nia}' be modified on the basis of experience or changes in circimi- 
stances, such modifications to be based upon application to the Board 
find such notice and hearing as it shall specify and to become effective 
on approval by the President. 

Article IX — Monopolies 

Xo i)rovision of this Code shall be so applied as to permit monopo- 
lies or monopolistic practices, or to eliminate, oppress, or discrimi- 
nate against small enterprises. 

Article X 

By assenting to the Code, members of the trade do not thereby 
waive any constitutional rights. 

Article XI — Effective Date 

This Code shall become effective on the second Monday after its 
approval by the Pi-esident. 



Approved Code No. ~>47, 
Registry No. 122—07. 



O 



Approved Code No. 548 
CODE OF FAIR COMPETITION 



FOR THE 



PACKAGE AND PASTEURIZED-BLENDED AND 
PROCESS CHEESE INDUSTRY 

As Approved on February 2, 1935 



ORDER 



Code or Fair Competition for the Package and Pasteueized- 
Blended and Process Cheese 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, api^roved June 16, 1933, for approval of a Code of 
Fair Competition for the Package and Pasteurized-Blended and 
Process Cheese Industry, and hearing having been duly held thereon 
and the annexed report on said Code, containing findings with re- 
spect thereto, having been made and directed to the President, 

NOAV. THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate 
by reference said annexed report and does find that said Code com- 
plies in all respects with the pertinent provisions and will promote 
the policies and purposes of said title of said act; and does hereby 
order that said Code of Fair Competition be and it is hereby 
approved. 

National Industrial Recovery Board, 
By W. A. Harriman, Adiyiinistrative Q-fJicer, 

Approval recommended : 
Armin W. Riley, 

Division Adtninistrator. 

Washington, D. C, 

Febi'uary ^, 1935. 

113793° 1573-19 35 (73) 



REPORT TO THE PRESIDENT 

Tlie PRESinENT. 

Th^ White House. 
Sir: This is the report of the National Industrial Recovery 
Board on the public hearino; of the Code of Fair Competition for 
the Package and Pasteurized-Blended and Process Cheese Industry 
of the United States, conductino; on July 12, 1934, in accordance 
with the provisions of the National Industrial Recovery Act and the 
Executive Order dated June 26, 1933. 

GENERAIi 

The functions of this industrj^ include the manufacture and the 
sale by a manufacturer or the sale by a national distributor of pack- 
age pasteurized-blended cheese and process cheese and the manufac- 
ture and sale of all cheese food products produced by mixing one 
or more lots of cheese into a homogeneous mass with the addition of 
ingredients other than cheese. 

The Package and Pasteurized-Blended and Process Cheese In- 
dustry during 1933 manufactured and marketed approximately 
140,000,000 pounds of products and 40,000,000 pounds of packaged 
cream cheese. Assuming that the total domestic cheese industry 
amounts to 475,000,000 pounds, it is apparent that a large portion of 
the cheese marketed in the United States is handled by members of 
this industry and since package cheese and the pateurized-blended 
and process cheese bring a larger price than the bulk goods, compris- 
ing the remainder of the total, the value of the products of the in- 
dustry will be seen to comprise even a larger relative portion by 
valuation. 

1. Number of employees in June, 1929 did not exceed 2,000. In 
June. 1933, factory employment was 87 per cent of that for 1929. 

2. The factory payroll of June, 1933 was 57 per cent of that for 
1929. 

3. The 40 hour week as proposed by the Code will tend to increase 
employment in the industry by about 10 per cent. 

4. It is estimated that the proposed Code will make a net addition 
to the industrial payroll of approximately 15 per cent 

Table I. — Employment in process cheese factories 





Actual 

employment 

June 1933 


Estimated 
employment 
June, 1933 
if 40-hour 
week had 
been in etlect 


Percent of 
actual em- 
ployment 


Office: 

Males 


72 
108 


78 
118 


108.0 




109. 








180 


196 


108.8 


Factory: 


1,183 
437 


1,435 
346 


121.0 


Females - 


79.0 








1,620 


1,781 


110.9 




1,800 


1,987 


110.0 







(74) 



75 



The summary of the results of the Research and Planning Divi- 
sion's calculations as to the effect of the code upon employment is 
presented in tabular form in the table above. 

It is estimated that had the 40-hour week been in effect there 
would be an increase of office employment of 8.8 per cent, factory 
employment 10.9 per cent, combined office and factory, 10 per cent. 

Table II. — Payrolls 



Percent of 
pre-code 
payroll 



1. Estimated actual weekly payroll as of June, 1933. 

2. Net post-code payroll 




100.0 
119.0 



It will be noticed that if the Code had been in effect in June, 1933, 
it would have increased the total weekly payroll for the industry 
from $31,500 to $37,480. The net increase, therefore, due to code 
provisions would represent approximately 19 per cent of the old 
payroll. About half of this increase is clue to the reemployment as 
a result of the 40-hour week and the remainder occurs as a result 
of the application of minimum wages proposed by the Code. 

PROVISIONS AS TO HOURS 

This Code provides for a maximum work week of 40 hours and 
not over nine (9) hours in any day, with the following exceptions: 

(a) Executive, managerial, supervisory, technical, who regularly 
receive not less than $35.00 per week; or to outside salesmen and 
service salesmen. 

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

(c) Chauffeurs and deliverymen shall not be permitted to work 
in excess of forty-eight (48) hours per week. 

(d) Engineers and firemen shall not be permitted to work in excess 
of forty-four (44) hours per week. 

(e) In case of unforeseen peak production, inventory periods, fi- 
nancial closing periods, or unusual conditions beyond the control of 
the employer, employees may be permitted to work in excess of 
normal number of working hours per day or per week provided in 
this Code for them respectively. Such overtime shall not exceed 
six (6) hours in any week, except in cases of emergency repair work 
involving breakdowns or protection of life or property and emer- 
gency installations; and shall be compensated by at least time and 
one-half the normal rate, except that said compensation need not be 
paid to clerical and other office employees. 

PROVISIONS AS TO WAGES 



Minimum wage rates are as follows : 

(a) Office employees: $16.00 per week in cities of over 500,000 
population 

$15.00 per week elsewhere. 



76 

(b) Other male employees : 45^ per hour to all employees except 
those engaged in packaging and light work 35^ per hour. 

5^ per hour less for all employees in the Southern States. 

(c) Where a piece work rate or other basis is the method of pay- 
ment, the piece work rate shall yield for each employee on such 
work not less than the minimum hourly wage applicable for such 
person, computed over a day's work. 

(d) The Code contains the equitable adjustment clause. 

(e) Female employees performing substantially the same work 
as male employees shall receive the same rate of pay as male 
employees. 

(f) Time and one-half the normal rate has been provided for 
work done on Sundays, Christmas Day, Thanksgiving Day, Labor 
Day, July Fourth, and New Year's Day, except for watchmen, sales- 
men and those in an executive or a managerial capacity. 

(g) The Code provides for the employment of physically handi- 
cajDped persons on light work. 

(h) This Code prohibits the employment of any person under 
sixteen (16) years of age and under eighteen (18) years of age at 
occupations hazardous in nature and detrimental to health. 

This Code also provides for the posting of labor provisions and 
safety and health of employees. 

ADMINISTRATION 

The Code Authority is established consisting of eleven members 
selected as follows: 

Four by manufacturers of Pasteurized-Blended and/or Process 
Cheese ; three by national distributors ; and four by specialty manu- 
facturers, each group electing their members. 

Provision is also made in this Code to take care of the necessary 
expenses of the Code Authority in its administration of the Code. 

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

It finds 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), b}^ increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relie^dng 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 the Board as a major industry. 



77 

(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. 

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

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

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

For the above reasons, this Code has been approved. 

For the National Industrial Recovery Board : 

W. A. Harrimax, 
Administrative Officer. 

February 2, 1935. 



CODE OF FAIR COMPETITION FOR THE PACKAGE AND 
PASTEURIZED-BLENDED AND PROCESS CHEESE 
INDUSTRY 

Article I — Puepose 

To effect the policies of Title I of the National Industrial Recov- 
ery Act, this Code is established as a Code of Fair Competition 
for the Package and Pasteurized-Blended and Process Cheese 
Industr}^, and upon approval its provisions shall be the standards 
of fair competition for such Industry and be binding upon every 
member thereof. 

Article II — Definitions 

As used herein : 

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

(b) The terms "Package and Pasteurized-Blended and Process 
Cheese Industry " and " Industry " mean the manufacture and sale 
by a manufacturer or the sale by a national distributor of pasteur- 
ized-blended cheese, and/or process cheese, and the packaging, the 
processing after original manufacture of the curd, and/or the sale 
b}'' a manufacturer or national distributor of cream cheese and/or 
Neuchatel cheese as defined by standards from time to time promul- 
gated by the Secretary of Agriculture, and other competitive types 
of cheese which by reason of variation in the process of manufacture 
may not be included within said standards and the maufacture 
and/or sale by a manufacturer or national distributor of all cheese 
food products produced by mixing one or more lots of cheese with 
or without the aid of heat into a homogenous mass with the addi- 
tion of ingredients other than cheese and such related branches or 
sub-divisions as may from time to time be included under the pro- 
visions of this Code. 

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

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

(e) The term " Employer " means any one by whom any such 
employee is compensated or employed. 

(f ) The term " Outside Agency " means any person or finn hav- 
ing no financial interest in the Industry, selected by the Code Au- 
thority to function as provided herein. 

(g) The term " National Distributor " means any food product 
manufacturer selling food j)roducts by its own paid sales organiza- 

(78) 



79 

tion in at least twenty states of the United States and who sells at 
wholesale under his own label or brand the products of the Industry 
supplied him by a manufacturer. 

(h) The term "Manufacturer'' means any individual, partner- 
ship, association, corporation or other form of enterprise engaged in 
the manufacture and sale of the products of the Industry. 

(i) The term " Specialty Manufacturer '' means any manufacturer 
who does not manufacture pasteurized-blended or process cheese but 
who does manufacture and sell any other product of the Industry. 

(j) The term "Product of the Industry" means pasteurized- 
blended, process cheese, cream cheese or Neuchatel cheese, as defined 
by standards from time to time promulgated by the Secretary of 
Agriculture, and any competitive types of cheese which by reason of 
variation in the process of manufacture may not be included within 
said standards, and any cheese food product produced by mixing 
one or more lots of cheese with or without the aid of heat into a 
homogeneous mass with the addition of ingredients other than 
cheese. 

(k) The terms " Jobber " and/or " Wholesaler " mean any indi- 
vidual, partnership, association, corporation, or other form of en- 
terprise which buj^s, from any member of the Industry, cheese or 
other food products and resells such products to the retail trade, 
hotels and restaurants, but whicli does not sell direct to the consum- 
ing public. 

(1) The term " Retailer " means any individual, partnership, asso- 
ciation, corporation, or other form of enterprise which operates one 
or more stores through which, in the regular course of its business, 
food products are sold to the consuming public. 

(m) The term " AVatchmen " includes only employees whose prin- 
cipal function is watching and guarding the premises and property 
of an establishment of a member of the Industr3^ 

(n) The term " Outside Salesman " means a salesman who is 
engaged not less than sixty percent (60%) of his working hours in 
selling outside of the establishment of his employer and who does not 
ordinarily deliver merchandise. 

(o) The term "Service Salesman" means any salesman who also 
delivers and services merchandise. 

(p) The term "Trade Buyer" means any commercial buyer (in- 
cluding other members of the Industry) as distinguished from an 
ultimate consumer buyer. 

(q) The term "Broker" means any sales representative who per- 
forms the services of negotiating the sale of products for and on 
account of the seller as principal, and whose compensation is a com- 
mission or brokerage paid by the seller. 

Section 2. Population for the purposes of this Code shall be deter- 
mined by reference to the latest Federal Census. 

Article III — Hours 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any week or nine (9) hours in any day, except 
as otherwise provided in this Article. 

H:JTI»:J'' 1573-19 35 2 



80 

Section 2. The provisions of this Article shall not apply to per- 
sons employed in a managerial, supervisory, executive, or technical 
capacity, Avho regularly receive not less than thirty-tive dollars 
($35. OJ) per week; or to outside salesmen and service salesmen. 

Section 8. \\ atchmen shall not be permitted to work in excess of 
lift3'-six (50) hours per Aveek. 

Section 4. Chaulleurs and deliverymen shall not be permitted to 
work in excess of forty-eight (-18) hours per w^eek or nine (9) hours 
in any day. 

Section 5. Engineers and firemen shall not be permitted to work 
in excess of forty-four (44) hours per week. 

Section 6. In case of unforeseen peak production, inventory 
periods, linancial closing periods, or unusual conditions beyond the 
control of the emploj'er, employees, except clerical and other ofRce 
emi^loyees, may be permitted to Avork in excess of the normal num- 
ber of working hours per day or per week provided in this Code for 
them respectively. Such overtime shall not exceed six (6) hours 
in any week, except in cases of emergency repair work involving 
breakdowns or protection of life or property, and emergency installa- 
tions; and shall be comioensated by at least time and one-half the 
normal rate; clerical, accounting, or other office employees' weekly 
maximum hours provided in Section 1, Article III may be averaged 
over five weeks. 

Section 7. Xo employer shall knowingly permit any employee to 
work for a total number of hours in excess of the number of hours 
prescribed for his occupation, for each week and day, whether 
emploj'ed by one or more employers. 

Section 8. Xo employee shall be permitted to work more than 
six days in any seven day period except as provided in Section 2 
herein, or when engaged in emergency lepair work or emergency 
installations as provided in Section 6 herein. 

Article IV — Wages 

Section 1. Xo person employed in clerical, accounting, or other 
office work shall be paid less than at the rate of: 

Sixteen dollars ($16.00) a w^eek in cities of over 500,000 population 
or in the immediate trade areas thereof; 

Fifteen dollars ($15.00) a week elsewhere, except that office boys 
and messengers may be paid at a minimum rate of two dollars ($2.00) 
below the minimum wage otherwise applicable; provided, however, 
that where more than one employee is employed as an office boy or 
messenger, not more than five percent (5%) of the total number of 
office employees shall be so classified. 

Seciton 2. Xo Avatchman shall be paid at a rate of less than 
eighteen dollars ($18.00) per week. 

Section 3. Xo other employee shall be paid at less than the rate 
of forty-five cents (45^) per hour, except that employees engaged in 
packaging and other light work shall be paid not less than the rate 
of thirty-five cents (350) per hour, and except that all employees in 
the States of Virginia, Xorth Carolina, Louisiana, Texas, Arkansas, 
Oklahoma. Kentucky. South Carolina, Tennessee, Alabama, (leorgia, 
Florida, and ]Mississi])pi may be paid at rates of five cents (50) per 
hour less than the forejroinsr rates. 



81 

Section 4. Where a piecework rate or other basis is the method 
of payment, the piecework rate shall yield for each employee on 
such work not less than the minimum hourly wage applicable for 
such person, computed over a day's work. 

Section 5. No employee whose normal full-time w^eekly hours, 
after the approval of this Code, shall be sixteen and two-thirds 
percent (16%%) or less below his normal full-time weekly hours 
for the four months ending May 1, 1933, shall have his full-time 
weekly earnings reduced below the average weekly earnings of such 
emplo3'ee during such four months' period. In case the reduction 
in hours, as so measured, is more than sixteen and two-thirds per- 
cent (16%%), employers shall make an equitable readjustment of 
hourly wage rates upw^ards, provided that in each such case hourly 
wage rates shall be increased by at least twenty percent (20%). In 
no case shall hourly wage rates be reduced. Within sixty (60) days 
after the adoption of this Code the Code Authority shall report to 
the Board the adjustments made pursuant to this Section. 

Section 6. Female employees performing substantially the same 
Avork as male employees shall receive the same rate of pay as male 
employees, provided, that when male employees perform work cus- 
tomarily done by female employees only during hours wdien female 
labor is prohibited by applicable law, it shall not be required that 
female emplo3'ees doing such work at other times be paid at the 
same rate as such male employees. 

Section 7. Time and one-half the normal rate shall be paid for 
all time worked (except by watchmen, outside salesmen, service 
salesmen, and those persons employed in a managerial, executive, or 
technical or supervisory capacity, as set forth in Section 2 of 
Article III) on Sundays and the following holidays: Christmas 
Day, Thanksgiving Day, Labor Day, July Fourth, New Year's Day, 
and such other holidays as may be proclaimed by the President of 
the United States. 

Section 8. A person whose earning capacity is limited because of 
age, physical or mental handicap, or other infirmity, may be em- 
])loyed on light work at a wage below the minimum established by 
this Code, if the employer obtains from the state authority, desig- 
nated by the United States Department of Labor, a certificate au- 
thorizing 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 
Avith 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. No person under sixteen (16) years of age shall be 
emi)loyed in the Industry. No person under eighteen (18) years of 
age shall be employed at operations or occu|)ations which are hazard- 
ous in nature or dangerous to healtli. The Code Authority shall 
submit to the Board within two months after the Code becomes effec- 
tive a list of such operations or occupations. In any State, an em- 



82 

ploj'er 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 cer- 
tificates or permits showing that the employee is of the required age. 
Sectiox 2. (a) Employees shall have the right to organize and 
bargain collectively through representatives of their own choosing, 
and shall be free from the interference, restraint, or coercion of 
employers of labor, or their agents, in the designation of such repre- 
sentatives or in self-organization or in other concerted activities for 
the puri^ose 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 comi)any union or to 
refrain from joining, organizing, or assisting a labor organization 
of his own choosing. 

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

Section 3. Employers shall not change the method of payment of 
compensation or reclassify employees or duties of occupations per- 
formed b}' employees or discharge emploj^ees and reemploy them at 
lower rates in order to defeat the purpose of the Act or the pro- 
visions of this Code, nor engage in any other subterfuge to effect the 
defeat of such purposes or provisions. 

Sectiox 4. Every employer shall provide for the safety and health 
of employees during the hours and in places of their employment. 
Standards for safety' and health shall be submitted by the Code 
Authority to the Board within three months after the effective date 
of the Code. 

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

Sf.ction 6. All employers shall post and keep posted copies of this 
Code in conspicuous places accessible to all employees. Every mem- 
ber of the Industry shall comply with all rules and regulations rela- 
tive to the posting of provisions of Codes of Fair Competition which 
may from time to time be prescribed by the Board. 

Section 7. The provisions of this Code governing hours of labor, 
rates of pay, and other conditions of emi)loyment shall apply to all 
persons who would ordinarily be classed as employees in this Indus- 
try, and no employer shall exempt any such person from said pro- 
visions because lie is related to the emplo^^er, or for any other reason. 

Section 8. "Wages shall be exempt from fines; and from charges 
and deductions, except charges or deductions covering employees' 
voluntary contributions to pension, insurance, or benefit funds or 
other deductions required by law; and no employer shall withhold 
wages except upon service of legal process or other papers law- 
fully re(juiring tlie same. Deductions for purposes not heretofore 
stated may be made only when the agreement is in writing and is 
kept on file by the employer open to the inspection of the Board. 

Section 9. P^mployers shall make payment of all wages due in 



lawful ciirrenc}^ or by negotiable checks, payable on demand. All 
contracts of employment shall prescribe payment of wages at least 
semi-monthly. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

A. organization and constitution 

Section 1. A Code Authority is hereby establislied consisting of 
eleven members to be selected in the following manner : 

Four by manufacturers of pasteurized-blended and/or process 
cheese; three by national distributors; and four by specialty manu- 
facturers. The members of the Code Authority shall be elected 
annually at a meeting of the Industry called for that purpose and 
shall serve for one year or until their successors are elected. All 
members of the Industry who shall have qualified to participate in 
the selection of the Code Authority in accordance with Section 6 
of this Article shall have the right to vote for members of said Code 
Authority. Each member of the Industry shall have the right to 
vote for the members of the Code Authority representing the group 
of which he is a member and shall have a number of votes for such 
members of the Code Authority equal to the number of members of 
the Code Authority above designated for his group except that 
the four members of the Code Authority representing the manu- 
facturers of pasteurized-blended and/or process cheese shall be 
elected by a volume vote of the members of the Industry entitled 
to vote therefor, each member having one vote for each full unit of 
five million pounds of said cheese produced by it during the calen- 
dar year immediately preceding the date of election provided if any 
such member has an annual production less than said five million 
pounds, he shall nevertheless have one vote. The persons receiving 
the highest number of votes in each group shall to the extent above 
provided become members of the Code Authority. No member of 
the Industry shall have more than one representative on the Code 
Authority. Said votes may be cumulated in voting if desired and 
may be by proxy or by mail. 

Section 2. Alternate members of the Code Authoritj^ to serve in 
the place and stead of the members thereof, in the event that any 
member shall be unable to attend a meeting thereof or otherwise 
temporarily be unable to perform his duties as such member, may 
be elected at the same time and in manner provided for the election 
of the members of the Code Authority in Section 1, 

Section 3. In event of the death or resignation of any member 
of the Code Authority his successor shall be elected in the manner 
above provided from the same class of members of the Industry as 
the former member represented at a special meeting of such class of 
the Industry called by the Code Authorit}^ for the purpose and held 
at such time as may be designated by the Code Authority. In event 
such successor shall not have been elected within the period of sixty 
days from the date of such death or resignation then in such event 
the Board shall have the right to desionate from the same class such 



84 

successor and he shall serve until the time his successor shall be 
elected as above provided. 

Section 4. In addition to the membership of the Code Authority 
as above provided there may be one or more members without vote to 
be known as administration members appointed b,y the Board to 
serve on the Code Authority without compensation from the Industry 
for such time as tlie Board may designate. The representatives who 
may be appointed by the Board shall be given notice of all meetings 
of the Code Authority'. 

Sectiox 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 
any one for any act of any other member, ofiicer, 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 any one for any action or omission to act under 
this Code, except for his oAvn wilful misconduct or malfeasance. 

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

Section 7. If the Board shall determine that any action of the 
Code Authority or any agency thereof is unfair or unjust or con- 
trary to the public interest the Board 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 
pending final action which shall not be effective unless the Board 
approves or unless it shall fail to disapprove after thirty days no- 
tice to it of intention to proceed with such action in its original 
or modified form. 

B. rOV>'ERS AND DUTIES 

Section 8. Subject to such rules and regulations as ma}- ])e issued 
b}" the Board, the Code Authority shall have the following powers 
and duties, in addition to those authorized by other provisions of 
this Code. 

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

(b) To adopt By-Laws, rules, and regulations for its procedure. 
A quorum shall consist of not less than six members and any action 
taken shall be at a meeting dtdy called U])on notice to all members 
of the C<Kle Authority an(l shall be by vote of the majority of those 
present at such meeting, but must include the favorable vote of two 
members representing manufacturers of pasteurized-blended or proc- 
ess cheese. 

(c) To obtain from the members of the Industry such informa- 
tion and reports as are required for the administration of the Code 
inchuling comprehensive data and information as to market, trade, 
and manufacturing conditions in the Industry. In addition to in- 



85 

formation required to be submitted to the Code Authority, members 
of the Industry subject to this Code shall furnish such statistical 
information as the Board may deem necessary for the purposes re- 
cited in Section 3 (a) of the Act to such Federal and State agencies 
as it may designate ; provided that nothing in this Code shall relieve 
any member of the Industry of any existing obligations to furnish 
reports to any Government agency. No individual report shall ba 
disclosed to any other member of the Industry or any other party 
except to such other Governmental agencies as may be directed by 
the Board. 

(d) In order that no individual reports shall be disclosed to any 
other member of the Industry or any other party or agency except 
such governmental agencies as may be specified by the Board the 
Code Authority shall employ a confidential and disinterested outside 
agency to assemble such information for transmittal to the govern- 
ment or for conversion into general statistics without individual 
identification for the use of the Code Authority, provided in event 
said information and reports in the opinion of the outside agency 
show a violation of said Code, said information, reports and records 
shall be at once presented by said outside agency to said Code 
Authority. 

(e) The Code Authority shall investigate directly or through 
the outside agency upon complaint of an interested party (if in 
the opinion of the Code Authority the complaint warrants such 
action) and subject to such rules and regulations as the Board may 
establish, any alleged specific violation or violations of an}^ provision 
or provisions of this Code and if it deems advisable shall require 
a report to said Code Authority or said outside agency in such 
form as the Code Authority shall prescribe, from any member or 
members of the Industry against which such complaint shall have 
been made, setting forth the facts pertaiiung to the alleged viola- 
tion or violations. 

(f) Each member of the Industry shall keep accurate and com- 
plete records of its transactions in the Industry whenever such 
records may be required under any of the provisions of this Code, 
and shall furnish accurate reports, based upon such records con- 
cerning any of such activities when required by the Code Authority 
or the Board. In the event any member of the Industry sliall fail 
to file a report or reports pertaining to a violation of this Code in 
the manner and when requested by the Code Authority or the Board 
so to do in accordance with the preceding paragraphs of this 
Article, or in the event the Code Authority or the Board shall deter- 
mine 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 vertification of such reports may 
be examined by an impartial agency agreed upon between the Code 
Authority and such member, or in the absence of agreement, 
appointed by the Board. 

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 application except such 
as may be required for the proper administration or enforcement of 
the provisions of this Code. A report shall be made by such impar- 



86 

tial ajTcncy to the Code Authority, who shall deal with the same as 
provided in subsection (e) liercof for reports filed by members of 
the Industry, 

(g) If after examining; any reports filed in accordance with the 
preceding paragraphs or after making any other investigations or 
after such hearings it shall deem advisable the Code Authority shall 
determine that any violation of this Code has been committed it 
shall at its option (1) notify the member or members of the Industry 
so violating the Code and request tliat such violation be discontinued 
and if the party continues in such violation the Code Authority shall 
then notify the Board or (2) report its findings of fact and recom- 
mendations to the Board which shall take such action under appli- 
cable law as it deems necessary. 

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

(i) 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 herein- 
after provided and which shall be held in trust for the 
purposes of the Code; 

(b) To submit to the Board for its approval, subject to such 

notice and opportunity to be heard as it 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 sup- 
port such budget shall be contributed by members of 
the Industry; 

(c) After such budget and basis of contribution have been 

approved by the Board, to determine and obtain equit- 
able 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 Board. Only members of 
the Industry complying with the Code and contributing to the ex- 
penses of its administration as hereinabove provided, (unless duly 
exempted from making such contributions; provided, however, that 
in the first election of the Code Authority no member of the Industry 
shall be deprived of the right to vote by reason of non-payment of 
his share of expense,) shall be entitled to participate in the selection 
of members of the Code Authority or to receive the benefits of any 
of its voluiitai-y activities or to make use of any emblem or insignia 
of the National Recovery Administration. 

3. The Code Authority shall neither incur nor paj any obligation 
substantially in excess of the amount thereof as estmiated in its ap- 
proved budget, and shall in no event exceed the total amount con- 



87 

tained in the approved budget, except upon approval of the Board ; 
and no subsequent budget shall contain any deficiency item for ex- 
penditures in excess of prior budget estimates except those which the 
Board shall have so approved. 

(j) To recommend to the Board 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 mdustries; 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 Board after 
such notice and hearing as it may specify. 

(k) To appoint a Trade Practice Committee which shall meet 
with the Trade Practice Committees appointed under such other 
codes as may be related to the Industry for the purpose of formulat- 
ing Fair Trade Practices to govern the relationships between em- 
ployers under this Code and under such others to the end that such 
Fair Trade Practices may be proposed to the Board as amendments 
to this Code and such other codes. 

(1) 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 Board for review. 
If approved by the Board, 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 by the member. 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. 

(m) The Code Authority in administering this Code may act 
through such agent or agents as it may designate provided that 
nothing herein shall relieve the Code Authority of its duties and 
responsibilities under this Code and that such agent or agents shall 
at all times be subject to and comply with the provisions hereof. 
If any of such activities are conducted through an outside agency 
the Code Authority shall arrange for such service by suitable con- 
tract and bond guaranteeing performance of same. The services of 
said outside agency shall be available to each member of the In- 
dustry under a service contract. The terms of said contract shall be 
approved by the Code Authority, subject to the disapproval of the 
Board. 

Article VII — Open Price Competition 

Section 1. That the pricing and selling of the products of the 
Industry may at all times be on an open basis, each member of the 
Industry shall issue identified price lists and revisions or changes 
thereof, showing his current offerings of all kinds, grades, weights, 
and styles of the products of the Industry which he sells or offers 
for sale; said lists shall show and be based upon unit list prices to 
retailers and shall show all discounts or allowances therefrom for 
service, quantities, freight, cartage, and terms of payment and all* 
other terms or conditions of sale. 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 



ss 

of said member as shall be designated by the Code Authority. Said 
lists shall be plainly dated and marked to show the territory in 
which the current prices shown are in effect. 

Section 2. Every member of the Industry shall publish or keep 
available for the equal information of all trade buyers located in 
the same competitive markets its schedule of prices, discounts and 
full terms of sale. 

Skctiox 3. In establishing schedules of prices and discounts every 
member of the Industry may classify trade buyers upon a reasonable 
basis including as grounds for classification distribution service 
rendered, trade area in which the trade buyers are located, and the 
quantit}' of purchases made by various trade buyers of the products 
of this Industry but all discounts must be uniform for all trade 
buyers of the same class and must be published, except as herein 
otherwise provided. 

Section 4. Each member of the Industry shall file with such 
confidential and disinterested outside agency as may be designated by 
the Code Authority, or if none, then with such an agent designated 
b}' the Board, within ten (10) days after the affective date of this 
Code, copies of all price lists referred to in Section 1 above. Each 
member shall be free to change and reissue his printed price lists 
as often as he sees fit and in event of any change of price discounts, 
terms or conditions of sale, revised price lists shall be filed with 
the outside agency at the same time and in the same manner in 
which such revised price lists are made available to trade buyers. 
In event any premium or coupon offer of any cooperative advertising 
plan or individual cooperative advertising contract with a trade 
buyer is made by any member of the Industry such member shall 
file with the outside agency, full data as to the offer made, the terri- 
torial limits thereof, or copies of said plans and/or contracts and 
said information shall be made available to the members of the 
Industry for inspection only. 

Price lists and revised price lists shall become effective immediately 
upon receipt thereof by said agent. Immediately upon receipt 
thereof said agent shall by collect telegram 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 trade buyers who have applied for and 
have advanced funds to defray the cost to be actually incurred by 
the outside agent in the preparation and distribution thereof and 
shall be available for inspection by any trade buyer at the office of 
such agent. 

Seciton 5. A. Inasmuch as approximately forty per cent (40%) 
of the products of the Industry is sold by members of the Industry 
direct to retailers and the remainder is sold to non-members for 
the purpose of resale to retailers, therefore in order to further carry 
out and safeguard the principles of open-price competition, any 
sale of the products of the Industi-y to a trade buyer other than a 
retailer shall be made by the member under a contract wherein such 
* trade buyers shall agree either to resell such products in strict ac- 
cordance with the current price list filed with the outside agency 
by the member selling such trade buyer or to resell in strict accord- 



89 

ance with his own price list which shall have been filed with the 
outside agency by such trade buyer in accordance with and follow- 
ing the procedure provided for members of the Industry in Sections 
1, 2, 3 and 4 of Article VII. 

B. Said contract shall further provide that said trade buyer shall 
not make or permit to be made any direct or indirect price con- 
cession to retailers ; said term " direct or indirect price concession " 
means any variation from the current price list governing the sales 
of such trade buyer and then on file with the outside agency, whether 
by means of a rebate, brokerage, refund, credit concession, allowance, 
payment, special service, free deal, gift or any other means what- 
soever. 

C. The members of the Industry shall within sixty days after 
the effective date of this Code complete the placing under contract 
as above provided all trade buyers affected by the provisions of this 
Section. 

Section 6. The Code Authority shall maintain a permanent file of 
all price lists filed as herein provided, and shall not destroy any part 
of such records except upon written consent of the Board. Upon 
request the Code Authority shall furnish to the Board or any duly 
designated agent of the Board copies of any such lists or re^sdsions 
of price lists. 

Section 7. No member of the Industry shall enter into any agree- 
ment, understanding, combination or conspiracy to fix or main- 
tain 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 VIII — Unfair Methods of Competition 

Section 1. Price Concessions. No member of the Industry shall 
sell directly or through a broker or sales agent or representative 
any product of the Industry (except in the case of sales to any 
Federal or State government or political subdivision thereof and 
except in the case of sales by a member of the Industry to another 
member thereof) to a trade buyer except in accordance with the 
prices, discounts, terms and conditions of sale set forth on the cur- 
rent printed price lists issued by the seller and then on file with 
the outside agency. No member of the Industry shall make or per- 
mit to be made any direct or indirect price concession to a trade 
buyer. The term " direct or indirect price concession " means any 
variation from the current price lists issued by such member and 
then on file with the outside agency whether by means of a rebate, 
brokerage, refund, credit concession, allowance, payment, special 
service, free deal, gift or any other means whatsoever. 

Section 2. Unearned Service Payments. No member of the In- 
dustry shall pay a retail buyer for a special " advertising ", " push- 
ing ", or other promotional service by such retail buyer (a) except 
in pursuance of a written contract made in good faith and explicitly 
defining the definite and specific advertising or promotion service 
to be rendered and the payment for it; and (b) unless a method of 
determining performance is provided for in the contract and such 



90 

service is rendered and such payment is reasonable and not excess- 
ive in amount; and (c) unless such contract is separate and distinct 
from any sales contract and such payment is separate and distinct 
from any sales price and is not designed or used to reduce a sales 
price; and (d) unless a copy of each such contract is retained on 
file for a period of one year. As long as the contract so made is 
pursuant to a plan filed Avith the Code Authority the individual 
contract need not be filed with Code Authority but in event the 
contract so made is an individual contract not entered into pursuant 
to any plan filed with the Code Authority or deviates from a plan 
so filed a copy of such contract shall be filed with the Code Authority. 
In order to investigate an alleged violation of this section, the Code 
Authority may require any member to report any such contract made 
by him and/or to produce a copy thereof for inspection. 

Section 3. 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 any 
trade buyer may at any time complain in writing to the Code Au- 
thority that any filed price constitutes unfair competition as destruc- 
tive price cutting, imperiling any member of the Industry, tending 
toward monopoly or to 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 party to the complaint, all 
papers shall be referred to the Research and Planning Division of 
NE,A which shall render a report and recommendation thereon to 
the Board. 

(b) "When no declared emergency exists as to any given product, 
there is to be no fixed minimum basis for prices, except it is intended 
that sound cost estimating methods shall be used. 

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

2. Emergen-cy Provisions. — (a) If the Board, after investigation 
shall at any time find both (1) that an emergency has arisen within 
the Industry adversely affecting any member of the Industry or 
wages or labor conditions, or tending toward monopoly or demorali- 
zation of the Industry or other acute conditions which tend to de- 
feat the purposes of the Act; and (2) that the determination of 
the stated minimum price for a specified product within the Industry 
for a limited period is necessary to mitigate the conditions consti- 
tuting such emergency and to effectuate the purposes of the Act, 
the Code Authority may cause an impartial agency to investigate 
costs and to recommend to the Board a proposed stated minimum 
])rice for the product affected by the emergency and thereupon the 
Board may proceed to determine a stated minimum price for the 
product. 

(b) When the Board shall have determined such stated minimum 
price for a specified product for a stated period, it 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 



91 

destructive price cutting. From time to time, the Code Authority- 
may recommend review or reconsideration or the Board may cause 
any determinations hereunder te be reviewed or reconsidered and 
appropriate action taken. 

Section 4. The following practices constitute unfair methods of 
competition and are prohibited : 

(a) Inaccurate Labeling. — To brand or mark or pack any goods 
in any manner which is intended to deceive or mislead purcha.sers 
with respect to brand, grade, quality, quantity, origin, sizes, sub- 
stance, character, nature, material, content or preparation of such 
goods. 

(b) Inaccurate Adverthlng. — To cause to be made or permit to be 
made by employees, or to publish by advertisement or otherwise any 
false or inaccurate statements in any material particular respecting 
any competitor or its goods, prices, values, credit terms, policies 
or services. 

(c) False Advertising and Containers. — To falsely or deceptively 
advertise any products of the Industry; or to use a deceptive con- 
tainer or to give short weight or short measure or short count. 

(d) Imitation of Labels. — To imitate the trade mark, trade name, 
package, wrapper or label of a competitor's product to such a degree 
as to deceive customers. 

(e) False BUling. — To withhold from, or to insert in any invoice, 
statements that make it a false record, wholly or in part, of the 
transaction represented on the face thereof. 

(f) False Price Statements. — To quote a fictitious price; to in- 
voice a false price; to make to any trade buyer any price statement 
or price representation wliich is false or fraudulent. 

(g) Compulsory Purchase. — To compel the purchase of one prod- 
uct in order to purchase or obtain another product. 

(h) Free Samples. — To give free samples with shipments or 
products of the Industry, provided, however, that this section shall 
not prevent the distribution direct to consumers of free samples 
plainly labeled as such. 

(i) Free Deals. — To give free deals with shipments of products of 
the Industry. The term " free deal " as used in this section shall 
mean the giving of free merchandise which would have the effect of 
reducing the net cost per unit to trade buyers below the prices filed 
under the provisions of Section 4 of Article VII. 

(j) Contests and Pirizes. — The giving of prizes, money, or coupons, 
redeemable in money or merchandise, to salesmen of trade buyers; 
provided, however, that any member of the Industry may conduct 
contests or distribute prizes among salesmen of a wholesaler who 
distributes the products of said member and who does not distribute 
the product or products of another member of the Industry which 
compete with the products of the member of the Industry first named 
in this proviso, if such contest or prize is not used to effect a reduc- 
tion in a price schedule filed hereunder. 

(k) Premiums. — To offer or give prizes, premiums, or gifts, or 
anything of value, in connection with, or as an inducement to, the 
sale of the products of the Industry, except as specifically permitted 
by paragraph (j). Section 4, Article YIII, or except where given to 
the consumer purchaser. 



92 

(1) Commercial Brihern/. — To give, permit to be given, or directly 
offer to give, anA^thing of value for the purpose of influencing, or 
retarding 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 emploj'er, 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. 

(m) Guarantee Against Price Declines. — To guarantee a trade 
buyer against a decline in the market price on such trade buyer's 
floor stocks. 

(n) Diversion of Sales Coinpensation. — To connive at or consent 
to any arrangement whereby, whether through the diversion of com- 
pensation paid to any employee or otherwise, any trade buyer shall 
be enabled to obtain any product of the Industry at a price below 
the applicable price as stated in the effective schedules filed under 
the provisions of this Code. 

(o) Contingent Orders. — To make any contract for future delivery 
contingent upon an advance or decline in the price of the product 
of the Industry. 

(p) Price Discrimination. — Either directly or indirectly to dis- 
criminate in price between different retailers by permitting any re- 
tailer means of securing the products of a member of the Industry 
at less than such member's or his jobber's current prices to retailers 
filed as provided in Article VII. 

Section 5. No member of the Industry shall manufacture for or 
sell to a trade buyer any unlabeled or unbranded product of the 
Industry and no member shall manufacture and sell products of 
the Industry bearing the label or brand of another except to mem- 
bers of the Industry pursuant to a written contract, and except to 
non-members of the Industry pursuant to a price filed in accordance 
with Article VII. 

Article IX — Modification 

Section 1. This Code and all 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 or revised on the basis of experience or changes in 
circumstances. The Code Authority shall make application for such 
modifications and revisions, when it deems necessary, from time to 
time, to the Board, and they shall become effective, after such notice 
and hearing as the Board shall specify, on approval by the Board. 

Article X — Monopolies, Etc. 

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



93 

Article XI — Effectims Date 

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



Approved Code No. 548. 
Registry No, 104-07. 



o 



Approved Code No. 549 
CODE OF FAIR COMPETITION 

FOR THE 

CIGARETTE, SNUFF, CHEWING, AND SMOKING 
TOBACCO MANUFACTURING INDUSTRY 

As Approved on February 9, 1935 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Code of Fair Competition for the Cigarette, Sxuff, Ciieaving, 
AND Smoking Tobacco Manufacturnig Indi stry 

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, 1983, for my approval of a Code of 
Fair Competition for the Cigarette, Snuft', Chewing, and Smoking 
Tobacco Manufacturing Industry; and hearings having been duly 
held thereon ; and the annexed report on said Code, containing find- 
ings with respect thereto, having been made and directed to me : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by said Title 
of said Act, and otherwise, do hereby adopt and approve said report 
and findings; incorporate the same herein by reference; find further 
that the approval of said Code will be in the public interest ; and 
order that said Code of Fair Competition be and it hereby is 
approved. 

I further order that the Division of Research and Planning of the 
National Recovery Administration be and it hereby is directed to 
make a study of conditions in the Industry relating to wages and 
hours of labor of employees to determine the extent of the contribu- 
tion made by the Industry toward reemployment and increased pur- 
chasing power, and submit its report tliereon together with its rec- 
ommendations with respect thereto to the National Industrial Re- 
covery Board as soon as jiracticable in order that said Board may, 
after due notice and hearing, take such action in connection there- 
with as it may deem necessary and pi-oper to effectuate the purposes 
of said Title of said Act. 

Franklin D. Roosevelt. 

The White House, 

February 0, lOJ-5. 

114994° 1573-49 35 (95) 



LETTER OF TRANSMITTAL 

The President, 

The White Hoxise. 
Sir: This is a report on the Code of Fair Competition for the 
Ciirarett^, Snuff, Chewin<j:, and Smoking Tobacco ^hmufacturing In- 
dustry as revised after a public hearing conducted in Wasiiington, 
D. C. on August 21. 1934, in accordance with the provisions of Title 
I of the National Industrial Recovery Act. 

TIIE INDUSI-RY IX CENEIJAL 

The Cigarette, Snuff, Chewing, and Smoking Tobacco Industry, 
as defined by the Code, embraces all establishments engaged in the 
manufacture and sale by the manufacturer of all forms of cigarettes, 
phig. twist, sera}), fine cut, snuff and smoking tobacco, and all proc- 
essing of leaf tobacco carried on in the course of such numufactur- 
ing. The manufacture of cigarettes, smoking, chewing tobacco and 
snuff is centered in the hands of a few firms. It is estimated that 
eight (8) companies produce over ninety-five per cent (OS^r) of the 
cigarettes made; that four (4) of these companies produce about 
eighty-five per cent (85%) of the total. These eight (8) companies 
also produce the bulk of smoking and chewing toljacco. The manu- 
facture of snuff is concentrated in the hands of about five (5) com- 
panies. The number of establishments manufacturing tobacco prod- 
ucts has been decreasing. The rate of decline of the number of 
tobacco and snuff manufacturers has not been so rapid as that in 
the Cigarette Industry. There were two hundred and six (206) 
establishments in the Tobacco and Snuff Industry in 1923. The 
number diminished to one hundred and twenty-five (125) in 1931, 
while in the Cigarette Industry the number of establishments has 
declined from sixty -one (61) in 1923 to fourteen (14) in 1931. 

The manufacture of plug, twist and fine cut chewing tobacco has 
declined from two hundred and six million (206,U00.(XK)) ])ounds in 
the year 1917 to seventy million (70,000 ,()()()) pounds in 1932. The 
per cajjita consumption has been declining for the past fifteen (15) 
years. Because of it« short chiration and easy accessibility, the 
cigarettes seems to be most suited to the national temperament. The 
gradual decline of prejudice against the use of cigarettes by men, and 
more recently, by women, has made j)ossible a wade spread adoption 
of cigarette smoking. The annual production of cigarettes increased 
from eight billion six liundred million (8,600,000,000) in 1910 to one 
liuiKh-ed and twenty-four billion (124,0(K),000,000) in 1930. The 
trend was slightly downward through 1930 to 1932 — turning ui)ward 
again in 1933. 

Cigarette, smoking and chewing tobacco manufacturers are located 
j)rincipally in the South. This is j^robably due to the source of raw 
materials. In 1932 three (3) states. North Carolina, Virginia, and 
Kentucky, jn-oduced ninety-tliree per cent (93%) of all cigarettes. 

HOURS AND WAOES 

Under the Code, employees are limited to forty (40) hours per 
week and eight (8) hours in any twenty-four (24) hour period, witli 

(96) 



97 

exceptions provided for managerial, executive and supervisory 
employees who earn regularly not less than thirty-five dollars 
($85.00) weekly, and outside salesmen. 

Employees engaged in emergency maintenance and emergency 
repair work and in the emergency handling of tobacco where delay 
would cause damage to the product, are permitted to work in excess 
of the maximum, provided that in such special cases time and a half 
shall be paid in excess of the maximum. 

Engineers, firemen, receiving and shipping employees are per- 
mitted to work forty-four (44) hours in any week provided that time 
and one-half (lYz) s^hall be paid after eight (8) hours in any twenty- 
four (24) hour period. 

Employees working in assignments connected with the handling 
and ])rizing of leaf tobacco during the leaf buying season sliall l)e 
permitted to work forty-eight (48) hours per week ]irovided time 
and one half (II/2) shall be paid for all hours worked in excess of 
eight (8) hours in any twenty-four (24) hour period, and forty-four 
(44) hours in any one week. 

Office employees are limited to forty (40) houi-s per week Avith a 
miniuuun of sixteen dollars ($1G.00) per week. 

"Watchmen are limited to ten (10) hours in any twenty-four (24) 
hour period and fifty-six (56) hours in any one (1) week, witli a 
minimum rate of pay of eighteen dollars ($18.00) per week. 

Eemale employees, performing substantially the same work as male 
ein))loyees shall receive the same rate of })ay as male em})l()yees. 

The Code provides for equitable adjustments. 

The Code establishes a minimum rate of pay of forty cents (40;/-) 
])er hour for employees engaged in the manufacture of cigarettes. 

The Code establishes a minimum rate of pay of thirty-five cents 
(35(;') an hour for employees engaged in the manufacture of snuff 
and smoking tobacco, or in the processing or handling of cigarette 
tobacco, at any stage prior to the fabrication of the product. Em- 
ployees engaged in any part of the ])rocessing or manufacture of 
])lug, twist, scrap and fine cut chewing tobacco, including stemming, 
shall be paid at the rate of not less than twenty-five cents (25^) 
per hour. Employees engaged as searchers, pickers, cleaners, hang- 
ers, prizers, classers and hand stemmers in any branch of the In- 
dustry, other than the manufacture of plug, twist, scrap and fine cut 
chewing tobacco, shall be jiaid at a rate of not less than thirty 
cents (30'/) an hour with a tolerance of fifteen per cent (157f ) for 
hand stemmers classed as slow workei's. The slow workers are to 
work on the same per pound juece work basis and shall be paid at 
not less than the rate of twenty-five cents (25(0 pei' hour. 

Machine stemmers in any branch of the Industry, other than the 
manufacture of plug, twist, scrap and fine cut chewing tobacco, shall 
he naid at a rate of not less than thirty-five cents (35<;A) an hour. 

The Code establishes minimum rates of pay irrespective of whether 
the employees are compensated on a time rate, piece rate or other 
basis. 

The Code prohibits home work in the Industry. 

ECONOMIC COXDinONS 

The Industry has been operating under the President's Reemploy- 
ment Agreement since August, 1933. As a result of this Agreement, 



98 

(which the Industry considered a Code), it is estimated that employ- 
ment increiisetl about seven per cent (7%), and wages approximately 
fifteen per cent (15%) at that time. The Code contains the same 
maximum hours as the Agreement, and will not result in any appre- 
ciable increase in emjjloyment; however, it is estimated that the 
minimum wages established by the Code will result in an increase of 
from twenty per cent {'20%) to twenty-five per cent (25%) for un- 
skilled employees over the present rate established by the Agreement. 

By virtue of the President's Reemployment Agreement, and in 
anticipation of the adoption of this Code, together with the recent 
inii)rovement in business, there has been noticeable relief in 
unemployment. 

The Deputy Administrator in his final report to the National 
Industrial Kecovery Board on said Code having found as herein set 
forth and on the basis of all the proceedings in this matter: 

The National Industrial Kecovery Boai'd finds 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 t)f 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 manage- 
nient under adequate governmental sanctions and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
])os.sible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be 
tem])orarily required), by increasing the consumption of industrial 
and agricultural ])rcKlucts through increasing purchasing power, by 
reducing and relieving uneraployment, by improving standards of 
labor, and by otherwise rehabilitating intlustry. 

(b) 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 subsection 
(b) of section 10 thereof; and that the applicant group is an indus- 
trial group truly representative of the aforesaid Industry; and that 
said group imi)oses no inequitable restrictions on admission to 
membership therein. 

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

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

(e) Those engaged in other steps of the economic j)rocess have iu>t 
been deprived of the right to be heard prior to approval of said 
Code. 

This Code, together with all documents pertaining thereto, are 
herewith transmitted to you for your consideration and such action 
as you may deem proper. 

For the National Industrial Recovery Board: 

W. A. Harriman, 

Administrative Officer. 
January 25, 1935. 



CODE OF FAIR COMPETITION FOR THE CIGARETTE, 
SNUFF, CHEWING, AND SMOKING TOBACCO MANU- 
FACTURING INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Re- 
covery Act, this Code is established as a Code of Fair Competition 
for the Cigarette. Snuff, Chewing, and Smoking Tobacco Manufac- 
turing Inclustrj^, and its provisions shall be the standards of fair 
competition for such Industry and be binding upon ever}^ member 
thereof. 

Article II — Definitions 

As used in this Code the following words and phrases shall be 
defined as follows : 

Section 1. The term " Cigarette, Snuff, Chewing, and Smoking 
Tobacco Manufacturing Industry " means and includes the manu- 
facture and sale by the manufacturer of all forms of cigarettes, 
snuff, chewing and smoking tobacco and all processing of leaf tobacco 
carried on by such manufacturer in the course of manufactui'ing 
said products, but does not include the handling or prizing of leaf 
tobacco at any stage prior to (a) the processing of redrying, or (b) 
in the case of tobacco that is not subject to the process of redrying, 
prior to the actual delivery thereof at the manufacturing ])lant. 

Section 2. The term " member of the industry " or "" member " 
means and includes, without limitation, any individual, partnership, 
association, corporation, or other form of enterprise engaged in tlie 
industry either as an employer or on his or its own behalf, and also 
includes any affiliate or subsidiarj^ thereof which is so engaged. 

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

Section 4. The term "employer" includes anyone by v.hom such 
eiu])loyee is compensated or employed. 

Section 5. The terms '•President." "Act" and "Board" menn, 
respectively tlie President of the United States, Title I of tlu' Na- 
tional Industrial Recovery Act and the National Industrial Recovery 
lioard appointed pursuant to said Act. 

Section 6. The term " watchman " means an employee at least 
ninety per cent (90%) of wliose working time is employed in watch- 
ing and safeguarding the premises of a member of the industry. 

Section 7. The term " outside salesman " means an employee not 
njore than ten (10) hours per week of whose working time is spent 
at the i)remises of his employer and who is engaged in outside selling 
functions and sales promotion activities. 

Section 8. The term " cliewing tobacco " includes plug, twist, 
scrap and fine-cut chewing tobacco. 

(99) 



100 
Article III — Hours 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any one week or eif^ht (8) hours in any twenty- 
four (24) hour period with the following exceptions: 

(a) Employees engaged in emergency maintenance or emergency 
repair work, involving breakdown or protection of life and property, 
or in the emergency handling of tobacco where delay would cause 
damage to the product: ])rovided that in such special cases not less 
than time and one-half (IV2) shall be paid for all hours woi'ked in 
excess of eight (8) hours in any twenty-four (24) hour period or 
forty (40) hours in any one week. Work regularly recurrent in char- 
acter shall not be defined as emergency work. 

(b) Engineers, firemen, receiving and shipping em])loyees may be 
])ermitted to work forty-four (44) hours in any one week, })r()vided 
that time and one-half (P/o) shall be |)aid after eight (8) hours in 
any twenty-four (24) hour period. 

(c) Watchmen nuiy be permitted to work not in excess of fifty-six 
(56) hours in any one week and ten (10) hours in any twenty-four 
(24) hour period, provided, however, no watchman shall be per- 
mitted to work in excess of thirteen (13) days in any fourteen (14) 
day period. 

(d) Employees working in assignments connected with the han- 
dling and ])rizing of leaf tobacco during the leaf buying season may 
be permitted to work not in excess of foi'ty-eight (48) hours in any 
week, provided, however, that such hours worked by such employees 
shall be compensated for at the rate of at least time and one-half 
(li/o) for all hours worked in excess of forty-four (44) hours in any 
one week or eight (8) houi-s in any twenty-four (24) hour period. 

(e) The maximum hours of Section 1 of this Article shall not 
ai>ply to executive, managerial and supervisory employees who regu- 
larly receive not less than thirty-five dollars ($35) weekly nor to 
outside salesmen. 

(f) Persons employed in accounting, clerical or office work may 
be ])ermitted to work in excess of eight (8) hours in any twenty-four 
(24) hour period, but not in excess of forty (40) hours in any one 
week. 

Section 2. Xo employee shall be permitted to work more than 
six (6) days in any seven (7) day pei-iod, excepting those em])loyees 
covered by Subsections (a), (c) and (e) of Section 1 of this Article. 

Section 3. No employer shall knowingly permit any employee to 
work for any time which, when added to the time sjient at work for 
another employer or employers in this or any other industiy exceeds 
the maximum permitted herein. 

Article IV — Wages 

Section 1. Mhi'nnvm War/ffi. — No employee, except as herein 
otherwise j)rovifled. shall l)e ])aid in any pay period less than at the 
rates per hour following, namely: 

(a) Cigarette.^. — No employee engaged in the manufacture of cig- 
arettes (whether employed on an hourly or piece work basis) shall be 
paid in any pay period less than at the rate of forty cents (400) per 
Ijour, except as herein otherwise provided; 



101 

(b) /Snuf and Sinohmg Tobacco. — No employee engaged in the 
processing or manufacture of snuff or smoking tobacco, or in the 
])rocessing or handling of cigarette tobacco at any stage prior to the 
fabrication of the product (whether employed on an hourly or 
piece-work basis) shall be paid in any pay period less than at the rate 
of thirty-live cent« (35^) per hour, except as herein otherwise 
provided. 

(c) Chewing Tobacco. — No employee engaged in any part of the 
l)rocessing or manufacture of chewing tobacco, including stemmino^, 
(whether employed on hourly or piece-work basis) shall be paid in 
any pay period less than at the rate of twenty-five cents {'li)(^) per 
hour. 

(d) tJxcepfHMts. — There shall be tlie following exceptions, namely : 
Employees engaged as searchers, pickers, cleaners, hangers, prizers, 
classers and hand-stemmers in any branch of the Industry other than 
the processing and the manufacture of chewing tobacco shall be 
paid at the rate of not less than thirty cents (30^) an hour except 
that not more than fifteen per cent (15%) of such hand stemmers as 
are classed by their employers as slow workers but who work on 
the same per pound piece-work basis as the other stemmers may be 
paid at the rate of not less than twenty-five cents (25(^) per hour. 
Machine stennners in any branch of the industry otlier than the 
manufacture of chewing tobacco shall be paid at the rate of not les-s 
than thirty-five cents (35^) an hour. 

Sectiox 2. No person employed in accounting, clerical or office 
work shall be paid less than at the rate of sixteen dollars ($16) for 
a week of forty (40) hours, except that office boys and girls and 
messengers may be paid at a rate of not less than eighty per cent 
(80%) of the minimum hereinabove specified: provided, however, 
that the number of such boys and girls and messengers so compen- 
sated below the prescribed minimum shall constitute not more than 
five per cent (5%) of the total number of all accounting, clerical 
and/or office employees of any office of any one employer, but in 
any case each employer shall be entitled to at least one (1) such 
employee. 

Section 3. Watchmen shall be paid at the rate of not less than 
eighteen dollars ($18) for a week of fifty-six (56) hours. 

Section 4. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
em])loyees. 

Section 5. 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 emjiloyer obtains from the State Authority, desig- 
nated by the Ignited States Department of Labor a certificate author- 
izing such person's employment at such wages and for such hours as 
shall be stated by tlie Department of Labor in issuing certificates to 
such persons. Eacli employer shall file monthly with the Advisory 
Committee a list of all such persons employed hy him. showing the 
wages paid to. and the maximum hours of work for such employees. 

Section 6. Wages shall be exempt from fines, rebates, charges and 
deductions, except charges and/or deductions voluntarily made by 
employees or required by law for pension, insurance, or for benefit 



102 

funds. No employer shall Avithhold wa^es except under legal 
process or other pa])ers lawfully requirinp; such withholding. 

Sectiox 7. This Article establishes minimum rates of pay which 
shall apply, irresi)ective of whether an employee is actually com- 
l^ensated on a time rate, piece work, or other basis. 

Section 8. Equitable adjustment of compensation of employees 
receiving more than the minimum rates of ]iay herein prescribed 
shall bo made by all employers who have not heretofore made such 
adjustments, provided, however, in no event shall hourly or weekly 
rates of pay be reduced as a result of the adoption of this Code. 

Aktule V — (lEXEUAn Ladoi{ Provisions 

Section 1. (a) Kmjiloyees shall have the right to organize and bar- 
gain collectively, tlirough representatives of their own choosing, and 
sliall be free from the interference, restraint, or coercion of em- 
])loyers of labor, or their agents, in the designation of such represen- 
tatives or in self-organization or in other concerted activities for the 
purpose of collective bargaining or other mutual aid or protection. 

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

(c) Employers shall couiply with the maximuui houi's of labor, 
miniunnn rates of pay. and other contlitions of enii)l()yincnt a})proved 
or prescribed by the President. 

Section 2. ^lO person imder sixteen (IG) years of age shall be 
employed in the industr}\ No ])erson under eighteen (18) years of 
age shall be employed at operations or occupations wdiich are hazard- 
ous in nature or dangerous to health. Tlu^ Advisory Connnittee 
shall submit to the Board within sixty (GO) days after the effective 
date of this Code, a list of such operations or occupations. In any 
State an employer shall be deemed to have comj)lied wnth this 
]>rovision as to age if he shall have on file a certificate or permit duly 
issued by the Authority in such State empowered to issue em])l()vment 
or age certificates or permits showing that the employee is of the 
required age. 

Se(tign ti. Emjdoyers shall make payment of all wages due, in 
lawful currency or by negotiable checks payable on demand. Pay- 
ment of wages shall be at least as often as twice a month and salaries 
as often as every month. 

Section 4. No j^rovision of this Code shall supersede any State or 
Federal Law which imposes on emi)loyers more stringent -require- 
ments, as to age of employees, Avages, hours of work, or as to safety, 
health, sanitary or general working conditions or insurance, or fire 
protection than are imposed by this Code. 

Se(tu)N ;■). (a) No employer shall change the method of payment 
of employees' compensation or reclassify employees or cluties of 
occujjations ])ei'f()rmed by emj)loyees. or dischai'ge em])loyees to reem- 
I)loy them at a lower rate of pay. or engage in any other subterfuge, 
so as to defeat the puri)oses of the Act or the j)r()visions of this 
Code. 

(b) No employer shall dismiss or demote any employee for mak- 
ing a complaint or giving evidence with respect to an alleged vio- 



103 

lation of the provisions of this or any other approved code of fair 
competition. 

Section G. Every employer shall post and keep posted in a con- 
spicuous place in his or its factoi-y or other place of work copies of 
the provisions of this Code or anv amendments thereto relating to 
liours, wages, and working conditions applicable to those employed 
in such factory or other place of work. 

Section 7. Every employer shall provide for the safety and health 
of employees during the hours and at the places of their employment. 
Such standards for safety and health shall be submitted by the 
Advisory Committee to the Board within six months after the 
effective date of this Code. 

Section 8. Memlj^rs of the industry shall furnish the Board or 
their duly accredited representatives for their confidential informa- 
tion such labor payroll statistics on time and piece workers as such 
Board or its duly accredited representatives may deem necessary for 
the purpose of determining that the labor provisions of this Code 
are being complied with in every respect. 

Section 9. No member of the industry shall permit homework. 

Article VI — Organization and Constitution of the Advisory 

Committee 

Section 1. An Advisory Committee is hereby established consist- 
ing of five (5) members truly representative of the industry, to be 
selected by the industry. 

Section 2. The Committee shall serve as a point of contact be- 
tween the Board and the industry and shall at all times be avail- 
able for consultation by the National Recovery Administration. 

Seciton 3. In order that this Committee shall at all times be truly 
representative of the industry, the Board may prescribe such hear- 
ings as it may deem proper and thereafter if it shall find that the 
Advisorj'^ Committee is not truly representative, it may dissolve the 
Committee and order an appropriate selection of members. The 
foregoing shall not, however, be construed to give the Board power 
to appoint or to require the appointment of particular individuals 
to the Committee or to deprive the Industry acting through repre- 
sentatives of its own choosing of the right to select the members of 
the Committee subject to the disaj)proval of the Board. 

Section 4. Nothing contained in this Code shall constitute the 
members of the x\dvisory Committee partners for any purpose. Nor 
shall any member of the Advisory Committee be liable in any man- 
ner to anyone for any act of any other member, officer, agent or 
employee of the Advisory Comn.iittee. Nor shall any member of 
the Advisory Committee, exercising reasonable diliirence in the con- 
duct of his duties hereuiulei-. be liable to anyone for any action or 
omission to act under this Code, except for his own wilful mal- 
feasance, or non-feasance. 

Section 5. The Committee shall have the following powers : 

(a) To adopt by-law5- and rules and regulations for its procedure. 

(b) To obtain from members of the industry, such information 
and reports as shall be required by the Board for the administration 
of the ])rovisions of this Code, such information to be transmitted 
directly to the Board. In addition to information required to be 



104 

Fiibmitted as aforesaid, members of the industry subject to this 
Code shall furnish such statistical information as the Board may 
deem necessary for the purpose recited in Section 3 (a) of the Act 
to such Federal and State afrencies as it ma}'^ designate; provided, 
that nothing in this Code shall relieve any member of the industry 
of any existinfr obli^rations to furnish reports to any (jovornment 
afrency. Xo individual report shall be disclosed to any other member 
of the industry or any other party except to such other Governmental 
a<rencies as may be directed by the Board. 

AirncLi: VII — Pmci: Ixciikases 

AVhereas the ]X)li('v of the Act to increase real purcha,';inf»: power 
"U'ill be made more difficult of consummation if prices of floods and 
services increase as rapidly as wa<2:es, it is recognized that price in- 
creases excejit such as may be required to meet individual cost 
should be delayed and when made such increa,'^es should, so far as 
po.-sihle. ])(> liuiited to actual additional increases in the seller's costs. 

Artici.k VIII — MoDincATiox 

Til is Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of Subjection (b) of Section 10 of the Act, from time to time to 
cancel or modify any order, approval, license, rule or regulation 
issued under Title I of said Act. 

Article IX — ]VIoxopoltes 

Xo j)rovisi()n of this Code shall be so applied as to permit mono]-)o- 
lies or monopolistic practices or to eliminate, oppress, or discriminate 
against small enterprises. 

Article X — Constitutional Rights 

By presenting and consenting to this Code the members of the in- 
dustry shall not be deemed to have waived any of their constitutional 
rights. 

Article XI — Effectiat: Date 

Tills Code shall become effective on the second Monday after its 
a])proval. 



Approved Code No. 549. 
Registry Xo. 1615-31. 



o 



Approved Code No. 550 
CODE OF FAIR COMPETITION 

FOE THE 

MANUFACTURING INDUSTRY IN THE 
TERRITORY OF HAWAII 

As Approved on February 14, 1935 



ORDER 



Approving Code of Fair Competition for the JManffacturixg 
Industry in the Territory of Hawaii 
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 Manufacturing Industry, ajid hearings 
having been duly held thereon, and the Deputy Administrator for 
Hawaii having made and submitted to the National Industrial Re- 
covery Board his report on said Code, containing his findings with 
respect thereto, and the annexed report of the National Industrial 
Recovery Board on said Code, containing findings Avith respect 
thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. G859, and otherwise ; does hereby incorporate 
by reference said report of the Deputy Administrator for Hawaii 
and the annexed report of the National Industrial Recovery Board, 
and does hereby concur in and adopt the findings of fact made 
therein, and does find that the said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of Title I of the National Industrial Recovery Act; and does 
hereby order that said Code of Fair Competition be, and it is hereby, 
aj)proved. 

National Industrial REC0^■ERY Board, 
By W. A. Harriman, Adm/nistrative Ofjicer. 

Approval recommended : 
John W. Upp, 

Acting Division Adm.lnii^trator. 

Washington, D. C, 

Fehmary H^ 1035. 

115655° 1G03 9 ^35 (10.") 



IlEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the Code of Fair Competition for the 
^Manufacturing Industry in the Territory- of Hawaii. The Public 
Hearing was conducted in Honohilu, T. H., on March 23, lOoi, in 
accordance with the provisions of the National Industrial Recoveiy 
Act. An adjourned Public Hearing was held in Washington, D. C. 
June 28, 1934, in order to permit mainland competitors an oppor- 
tunity to be heard. The association claims to represent over 50% 
of the Industry. 

Establishments manufacturing thirty or forty different products 
were grouped for the purpose of codifying. Some of the products 
represented are manufactured by only two or three concerns. There 
is a wide divergence in character and size of establishments, the 
majority being very small. 

HOURS AND WAGES 

The Code provides for a forty-four (41) hour work week for all 
clashes of employees, with a minimum wage of Ten Dollars ($10.00) 
per week for females, Twelve Dollars ($12.00) for males and Four- 
teen Dollars ($14.00) for office employees. Exception is made for 
office boys and girls who may be paid a minimum of Eleven and 
20/100 JDollars ($11.20) a week. Employees in a managerial or 
executive capacity receiving Thirty-Five Dollars ($35.00) per week 
are exempted from maximum hours, as are outside salesmen. Watch- 
men are i-estricted to a fiftj^-six (5(5) hour work week and are assured 
one day oil' in every fourteen days. Child labor is prohibited. 

The low minimum is due to the large number of factories owned, 
operated and staffed by Orientals. The Code represents a temporary 
compromise in the matter of hours and wages, in the interests of 
compliance, with an expressed intention on the part of the Deputy 
Administrator to hold a Public Hearing at the end of four months 
looking forward toward improvement in wage and hour schedules. 

ECONOMIC EFFECT OF THE CODE 

The proposed Code will effect a drastic increase in wages and reduc- 
tion of hours for some 25% of the 2,500 to 3,000 emplo3'ees in the 
Industry. 

FINDINGS 

The Deputy Atlministi-ator for Hawaii in a letter addressed to 
the National Industrial Recovery I'oard has made a clear and de- 
tailed report of the history of the Industry covered b}' this Code and 

(lOG) 



107 

in the conditions existing in that Industiy at the present time. He 
has made leno:thy and detailed findino-.s of fact in refjard to said 
Industry. The said report of the Deputy Administrator for Hawaii 
is submitted herewith and is incorporated by reference into this 
re]}ort and the National Industrial Kecovery Board does hereby con- 
cur in and adopts the report submitted. 

For these reasons, this Code has been approved. 

For the National Industrial Recovery Board: 

W. A. Harrimax, 

Administrati ve Ojjicer. 
February 14. 1035. 



CODE OF FAIR COINIPETITION FOR THE MANUFACTUR- 
ING INDUSTRY IN THE TERRITORY OF HAWAII 

Article I — Purpose 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is established as a Code of Fair Competition 
for the Manufacturin<^ Industry in the Territory of Hawaii, and 
its provisions shall be the standards of fair competition for such 
Industr}'. 

Article II — Definitions 

Section 1. The term " JManufacturin^^ Industry " as used herein 
shall mean the makin<T or asseinblino; in the Territory of Hawaii of 
any floods or wares for sale and the primary sale thereof by the 
maker or assembler and the furnishinf^ of manufacturing or repair 
services for remuneration, when such activities are not governed 
by any other code of fair competition which has been or may here- 
after be approved specifically for the Territory of Hawaii. The 
term " Manufacturing Industry " does not include those local service 
industries and/or trades which have been designated as such by the 
Administrator for Industrial Recovery or the National Industrial 
Recovery Board pursuant to Executive Orders of the President, 
including Executive Order No. 6723, dated May 26, 1934, and 
otherwise. 

Section 2. The term " Member of the Industry '' as used herein 
includes, but without limitation, any individual, partnership, asso- 
ciation, corporation or other form of enterprise engaged in the In- 
dustry, either as an employed or on his or its own behalf. 

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

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

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

Section 6. The term " Territorial Code Authority " as used here- 
in, means the administrative agency, constituted as provided for in 
Article VI of tliis Code. 

Section 7. The term " County " as used herein means the City 
and County of Honolulu, and/or the other counties of the Territory 
of Hawaii as defined by Section ir>75 of the Revised Laws of Hawaii 
1925. 

(108) 



109 
Article III — Hours 

Section 1. On and after the effective date of this Code no em- 
ployee shall be permitted to Avork in excess of forty-four (44) hours 
in any one week, and eight (8) hours in any twenty-four (24) hour 
period (beginning at midniglit) except as herein otherwise provided. 

Section 2. No employee shall be permitted to work on more than 
six (6) daj's in any seven (7) day period, except as provided in 
Section 6 of this Article. 

Section 3. Hours for Clerical and Office Employees. — No person 
employed in clerical or office work shall be permitted to work in 
excess of forty-four (44) hours in any one (1) week, or more than 
ten (10) hours in any twenty-four (24) hour period. 

Section 4. Emergency Repair Woi^k. — In case of necessity arising 
from emergency or from the character of the work, or from the 
inability to obtain competent labor, permission may be granted by 
the National Industrial Recovery Board, upon proper showing being 
made, to exceed the foregoing limitations, provided such permission 
shall be granted only upon such conditions imposed by the said 
National Industrial Recovery Board. All hours in excess of forty- 
four (44) hours in any one (1) week or eight (8) hours in any one 
(1) dajT^ shall be paid for at not less than one and one-third (IVs) 
times the regular rate. 

Section 5. Exceptions as to Flours. — The provisions of this Article 
shall not apply to outside salesmen, or to persons employed in a 
managerial or executive capacity wdio earn not less than Thirty-five 
Dollars ($35.00) per week. 

Section 6. AVatchmen shall be permitted to work no more than 
fifty-six (56) hours per week and no more than thirteen (13) days in 
any fourteen (14) day period. 

Section 7. Employment hy Several Employers. — No employer 
shall knowingly permit any employee to w^ork 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. (a) On and after the effective date of this Code no 
employee shall be paid less than at the rate of Twelve Dollars ($12.00) 
])er week, provided, however, that a woman employee may be paid 
at the rate of pay not less than Ten Dollars ($10.00) per week only 
in the event that she is engaged solely in light work for which such 
lesser rate of pay shall have been approved in advance by the Terri- 
torial Code Authority and/or the National Industrial Recovery 
Board, and a list showing each woman so employed and paid at such 
lesser rate shall be furnished promptly to the Territorial Code 
Authority and/or the National Industrial Recovery Board; pro- 
vided, further, that female employees performing substantially the 
same work as male employees shall receive the same rate of pay as 
male employees. 

(b) Office and clerical workers shall be paid at the rate of not 
less than Fourteen Dollars ($14.00) a week. 



110 

(c) Office boys and girls shall be exempt from such wage provi- 
sions provided thev are paid not less than at the rate of Eleven and 
20/100 Dollars ($11.20) a week, and further provided, that the num- 
ber of such office boys or girls shall not exceed one (1) for each ten 
(10) office workers or fraction thereof. All establishments shall be 
allowed one (1) office bo}- or girl. 

Section 2. In the case of employees performing work for which 
they are paid per piece of work performed, the minimum rate of pay 
which each member of the Industry' shall pay for such work shall 
produce earnings per hour for each emploj^ee for the number of hours 
worked in any pay period at least equal to the minimum rate of labor 
for the same type of work on an hourly basis. 

Section 3. Nothing contained in this Article shall be construed to 
apph' to employees whose rates of wages are established for specific 
prt)jects by competent governmental authority in accordance with 
law or with rates of wages established by contracts now in force, pro- 
vided sucli rates of wages are equal to or in excess of prescribed 
minimum rates. 

Section 4. All minimum rates of wage^ shall be net and without 
any deductions as to training fees, compulsory savings or deferred 
payments. Deductions for meals and lodging may only be allowed 
upon a scale of prices approved by the County Code Authority, and 
the National Industrial Recovery Board. 

Section 5. The weekly or monthly wages of all employees receiv- 
ing more than the minimum wages prescribed in this Article shall 
not be reduced from the rates existing upon July 15, 1933, notwith- 
standing any reduction in the number of working hours of such 
employees. 

Section G. No employer shall consider the minimum wages set 
forth, above to operate as fixing maximum wages. 

Section 7. Wages shall be paid at least monthly in lawful money 
or by negotiable check payable on demand. Wages shall be exempt 
from fines, charges, rebates, deductions or any other form of with- 
holding wages except for contributions voluntarily made by the 
employee or required by law. Tlie employer or his agents shall 
accept no rebates directly or indirectly on such wages nor give any- 
thing of value or extend favors to any person for the i)urpose of 
influencing rates of wages, hours, or the working conditions of his 
employees. 

Article V — General Provisions 

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

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



Ill 

(c) Employers sluill comply ^Yith the maximiim hours of labor, 
minimum rates of pay. and other conditions of eniploynient approved 
or prescribed by the President. 

Section 2. No employer shall reclassify em})loyees or duties of 
occupations performed, or engaged in any other subterfuge so as to 
defeat the purposes or provisions of the Act or of this Code. 

Section 3. (a) Every employer shall provide for the safety and 
health of employees during the hours and at the places of their 
employment. 

(b) Standards for safety and health shall be submitted by the 
Territorial Code Authority to the National Industrial Ilecovery 
Board within three (o) months after the effective date of this Code. 

Section 4. A person vrhose earning capacity is limited because 
of age or 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 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 ip. the certificate. Such Authority shall be guided by the 
instructions of the United States Department of Labor in issuing 
certificates for such persons. Each employer shall file monthly wiui 
the Territorial Code Authority, a list of all such persons employed 
by him, showing the wages paid to, and the maximum hours of work 
for such emploj^ee. 

Section 5. No provision in this Code shall supersede any Terri- 
torial or Federal law which imposes on employers more stringent 
requirements as to age of employees, v/ages, 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. (a) A person may be employed as an apprentice by any 
member of the Industry at a wage lower than the mininuun Avage, or 
for an}^ time in excess of the maximum hours of labor, established in 
this Code, if such member shall have first obtained from an agency 
to be designated or established by the Secretary of Labor, a certifi- 
cate permitting such person to he employed in conformity with a 
training program approved by such agency, until and unless such 
certificate is revoked. 

(b) The term " apprentice " as used herein shall mean a person of 
at least sixteen (16) years of age who has entered into a written con- 
tract with an employer or an association of employers which provides 
for at least two thousand (2000) hours of reasonably continuous em- 
ployment for such person, and his participation in an approved 
program of training as hereinabove providetl. 

Section 7. All employers shall post and keep posted copies of this 
Code in conspicuous places accessible to all employees. Every mem- 
ber of the Industry shall comply with all rules and regulations rela- 
tive to the posting of provisions of Codes of Fair Competition whi;'h 
may from time to time be prescribed by the National Industrial 
Recovery Board. 

Section 8. No person under eighteen (18) years of age shall be 
employed in the Industry in hazardous occupations. No person 
under sixteen (16) years of age shall be employed in the Industry in 
any capacity. Any employer shall be deemed to have complied Avith 



112 

this: provision as to a^re if he sliall have on file a certificate or permit, 
duly sip^ned by the Authority in the Territory of Hawaii empowered 
to issue employment or ngo certificates showin<r that the employee is 
of the required a<:e. Within thirty (30) days after the approval of 
this Code the Territorial Code Authority shall furnish to the Na- 
tional Industrial Kecovery Board a list of hazardous occupations 
within the meanin<; of this Section. 

Section 9. No employee shall be dismissed, demoted or discrimi- 
nated against by reason of making a complaint or giving evidence 
with respect to an alleged violation of this Code. 

ARTICLE VI — Organization, Powders and Duties of the Code 

Authority 

Section 1. (a) Within sixty (CO) days after the effective date of 
this Code, there shall be constituted a Territorial Code Authority 
consisting of seven (7) members to be elected by members of the In- 
dustry at a meeting or meetings called by the Temporary Territorial 
Code Authority, upon twenty (20) days' notice sent by registered 
mail to all known members of the Industry who may vote either 
in person, by proxj^ or by mail, each member of the Industry being 
entitled to one vote. The members of the Territorial Code Au- 
thority first elected shall serve until their successors are elected. 
Duiing such sixty (60) day period, until such Territory Code Au- 
thority has been so constituted, the committee of the group or the 
association sponsoring this Code shall constitute the Tem])orary 
Territorial Code Authority. The members of the Territorial Code 
Authority shall be elected in the following manner: 

Three (3) shall be elected by the members of the Manufacturers 
Association on the Island of Oahu; 

One (1) shall be elected by the members of the Manufacturers 
Association on the Island of Maui; 

One (1) shall be elected by the members of the Manufacturers 
Association on the Island of Kausi; 

One (1) shall be elected by the . members of the Manufactui-ers 
Association (m the Island of Hawaii ; and 

One (1) shall be elected by members of the Industry, not members 
of the Association, or failing such election, such member shall be 
appointed by the National Industrial Recoveiy Board from a list 
submitted by non-members of the Manufacturers Association, or, if 
such a list is not submitted, the National Industrial Recovery Board 
shall a])point from members of the Industry who are not members 
of the Association, one (1) member of the Territorial Code Author- 
ity. In addition thereto the National Industrial Recovery Board 
may appoint one (1) member of the Code Authority from the 
non-members of the association. 

"Where a vacancy occurs in the membership of the Territorial Code 
Authority, such vacancy shall be filled by the majority vote of the 
leniaiiiing Code Authority members, provided that such vacancy is 
filled by a representative from the same group as Avas the vacating 
nieml)ei'. 

(b) In addition to membership as above provided, there may be 
three (3) members, without vote, to be known as Administration 



113 

Members, to be appointed b}' the Xational Industrial Kecovery 
Board to serve for such terms as it may specify. 

Section 2. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Territorial 
Code Authority shall (1) impose no inequitable restrictions on mem- 
bership, and (2) submit to the National Industrial Recovery Board 
true copies of its articles of association, bj'-laws, regulations, and 
any amendments when made thereto, together with such other infor- 
mation as to membership, organization, and activities as the National 
Industrial Recovery Board may deem necessary to effectuate the 
purposes of the Act. 

Section 3. In order that the Territorial Code Authority and/or 
the County Code Authority shall at all times be truly representative 
of the Industry and in other respects comply with the provisions of 
the Act, the National Industrial Recovery Board may prescribe such 
hearings as it may deem proper ; and thereafter if it shall find that 
the Territorial Code Authority and/or the County 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 Territorial Code Authority and/or the County Code Authority. 

Section 4. Nothing contained in this Code shall constitute the 
members of the Territorial Code Authority and/or the County Code 
Authority partners for any purpose. Nor shall any member of the 
Territorial Code Authority ancl/or the County Code Authority be 
liable in any manner to anyone for any act of any other member, 
officer, agent or employee of the Territorial Code Authority and/or 
the County Code Authority. Nor shall any member of the Terri- 
torial Code Authority and/or the County Code Authority exercising 
reasonable diligence in the conduct of his duties hereunder, be liable 
to an3'one for any action or omission to act under this Code, except 
for his own wilful malfeasance or nonfeasance. 

Section 5. If the National Industrial Recovery Board shall at any 
time determine that any action of the Territorial Code Authority or 
an}^ agency thereof may be unfair or unjust or contrary to the public 
interest, the National Industrial Recovery Board may require that 
such action be suspended to afford an opportunity for investigation 
of the merits of such action and further consideration by such 
Territorial Code Authority or agency pending final action which 
shall not be effective unless the National Industrial Recovery Board 
approves or unless it shall fail to disapprove after thirty (3U) days' 
notice to it of intention to proceed with such action in its original 
or modified form. 

Section 6. (a) Subordinate to the Territorial Code Authority 
established in Section 1 of this Article, there shall be constituted 
County Code Authorities for those counties of the Territory, where 
in the opinion of the National Industrial Recovery Board the Terri- 
torial Code Authority will require assistance of a regional group in 
its duties of investigation, fact-finding, education and research. Mem- 
bers of the County Code Authorities shall be elected in a manner 
satisfactory to the National Industrial Recovery Board by the Indus- 
try at large in the county where they are to serve and shall be truly 
representative of the Industry in that county. 



114 

(b) In addition to membership on the County Code Authority as 
above provided, there may ho one (1) meml)er. Avithout vote, to be 
known as the A(huinistration Member, to be appointed by the Na- 
tional Industrial Recovery Board to si'rve for such terms as it may 
si^eeify. 

Section 7. Poirers and Duties. — Subject to such rules and reouhi- 
tions as may be issued by the National Industrial Kecovery Board, 
the Territorial Code Authority shall have the followinji; ])o\vers 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 Avith the provisions of 
the Act. 

(b) To adopt by-hnvs and rules and rop;ulations 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 Territorial 
Code Authority, members of the Industry subject to this Code shall 
furnish such statistical information as the National Industrial Recov- 
ery Board may deem necessary for the purposes recited in Section 
3 (a) of the Act to such Federal and Territorial aiieiu-ies as it may 
designate; provided that nothin<r in this Code sliall I'elieve any mem- 
ber of the Industry of any existing obligations to furnish reports 
to any government agency. No individual re]3ort 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 National 
Industrial Recovery Board. 

(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 Territorial Code 
Authority of its duties or res])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 Natioiuil Industrial Recov- 
ery Board for the coordination of the administration of this Code 
and such other codes, if any, as nuiy be related to oi- afft'ct members 
of the Industr3\ 

(f) (1) It being found necessary in order to sui)port the adminis- 
tration of this Code and to maintain the standards of fail- comi)eti- 
tion established hereunder and to eifectuate the j)olicv of the Act, the 
Territorial 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 ])ur])ose of the Code; 

(b) To submit to the National Industrial Recovery Board 
for its approval, subject to such notice and op]K)rtunity to be 
heard as it 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 
appi">v'ed by the National Industrial Recovery Board, to deter- 



115 

mine 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 Territorial 
Code Authority, determined as hereinabove provided, and subject to 
rules and regulations pertaining thereto issued by the National In- 
dustrial Recovery Board. Only members of the Industry comp]_ying 
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 Territorial 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 Territorial 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 National Industrial Recovery Board; and no subsequent budget 
shall contain any deficiency item for expenditures in excess of prior 
budget estimates except those which the National Industrial Recovery 
Board shall have so approved. 

(g) To recommend to the National Industrial Recovery Board any 
action or measures deemed advisable, including further fair trade 
practice provisions to govern members of the Industry in their rela- 
tions with each other or with other industries; measures for indus- 
trial plannimr. and stabilization of employment; and including modi- 
fications of this Code which shall become effective as part hereof upon 
approval bv the National Industrial Recovery Board after such 
notice nnd hearing as it mav 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 formulating fair 
trade practices to govern the relationships between employers under 
this Code and under such other codes to tlie end that such fair trade 
prar-tices may be proposed to the National Industrial Recovery Board 
as amendments to tliis Code and such other codes. 

(i) To provide ajiproprinte facilities for arbitration, and subject 
to tlie a])proval of tlie National Industrial Recovery Board, to pre- 
scribp rules of procedure and rules to effect compliance with awards 
and determinations. 

Article VII — Unfair Trade Practices 

Sectiox 1. Irioccurnfe Adverfl^ing. — No member of the Industry 
shall ])ublish 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 
(including, but M'ithout limitation, its use, trade-mark, grade, qual- 
ity, quantity, origin, size, substance, character, nature, finish, mate- 
rial content or preparation) or credit terms, values, policies, services, 
or the nature or form of the business conducted. 



116 

Section 2. False Billing. — Xo member of the Industry shall know- 
ingly "withhold from or insert in any quotation or invoice, any state- 
ment tliat makes it inaccurate in any material particular. 

Section 3. hmccxirate LahcUing. — No member of the Industry 
shall brand or mark or pack an}' <ioods in any manner -which tends to 
or does deceive or mislead purchasers "with respect to the brand, grade, 
qualitv. quantit3% origin, size, substance, character, nature, linish, 
material content or preparation of such goods. 

Section 4. Defamation. — No member of tiie Industry shall defame 
a competitor by falsely imputing to him dishonorable conduct, inabil- 
ity to perform contracts, questionable credit standing, or by other 
false representation, or by falsely disi)araging the grade or quality 
of his goods. 

Section 5. Threats 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 competitors 
or intimidating their customers. 

Section G. Secret Rebates. — No member of the Industry shall se- 
cretly oifer or make any payment or allowance of a rebate, refund, 
connnission, 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 s})ecial service or privi- 
lege not extended to all customers of the same class. 

Section 7. Selling on Consignment. — No member of the Industry 
shall ship goods on consignment except under circumstances to bo 
defined by the Territorial Code Authority and approved by the Na- 
tional Industrial Recovery Board, where peculiar circumstances of 
the manufacturer require the practice. 

Section 8. Commercial Bribery. — No member of the Industry 
shall give, permit to be given, or offer to give, anything of value 
for the purpose of influencing or rewarding the action of any em- 
ployee, agent, or representative of another in relation to the business 
of the emploj^er 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 adver- 
tising except so far as such articles are actually used for connuercial 
bribery as hereinabove defined. 

Section 9. 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, Avith the purpose and effect of hampering, injuring or embar- 
rassing competitors in their business. 

Section 10. Coercion. — No member of the Industry shall require 
that the purchase or lease of any goods be a i)i-erequisite to the pur- 
chase or lease of any other goods. 

AirncLE VTII — Price Increases 

"Whereas tlic policy of the xVct to increase real ]nirchasing power 
will be made more difficult of consuimnation if prices of goods and 



117 

services increase as rapidly as wages, it is recognized that price in- 
creases, except such as may be required to meet indiA'idual costs, 
should be delayed, but when made, such increases should, as far as 
possible, be Iniited to actual additional increases in the seller's costs. 

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 tlie 
provisions of subsection (b) of Section 10 of the Act, from time to 
time to cancel or modify any order, approval, license, rule, or regu- 
lation issued under Title I of said Act. 

Section 2. Such provisions of this Code as are not required to 
bo included herein by the Act may, with the approval of the Na- 
tional Industrial Recovery Board, 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 X — ^Ionopolies 

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

Article XI — Effective Date 

This Code shall become effective thirty (30) days after its 
approval by the President. 

Approved Code No. 550. 
liegistry No. 1625-62. 

O 



Approved Code No. 551 
CODE OF FAIR COMPETITION 

FOR THE 

CLOCK MANUFACTURING INDUSTRY 

As Approved on February 26, 1935 



ORDEE 



Approving Code of Fair Competition for the Clock Manufactur- 
ing Industry 

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

NOW, THEREFORE, on belialf of the President of the United 
States, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27th, 1934, and other- 
wise ; does hereby incorporate by reference said annexed report and 
does find that said Code complies in all respects with the pertinent 
provisions and will promote the policy and jDurposes of said Title 
of said Act; and does hereby order that said Code of Fair Compe- 
tition be and it is hereby approved ; and provided further that within 
ninety days said Board may direct that there be a further hearing 
on such of the provisions of said Code as it may designate, and that 
any order which it may make after such hearing shall have the 
effect of a condition on the approval of said Code. 

National Industrial REC0\Ti:RY Board, 
By W. A. Harriman, Adiiiinistrative O'fjficer. 

Approval recommended : 
Walter G. Hooke, 

Acting Division Administrator. 

Washington, D. C, 

February 26, 1935. 

117838° 1603-23 35 (119) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Clock ]\[anufacturino; Industry, the hearing? having been conducted 
in Washington on January 24, 1984, in accordance with the provi- 
sions of Title I of the National Industrial Recovery Act. This 
association claims to represent eighty-five percent of the Industry. 

HOURS 

This Code provides that factory employees shall not be employed 
for more than forty (40) hours in any one (1) week nor eight (8) 
hours in any one (1) day nor six (6) days in any seven (7) clay 
period. An exception is granted to the above limitations for twelve 
(12) weeks in any one (1) calendar year during which time employees 
may work forty-five (45) hours in any one (1) week but not more 
than nine (9) hours in any twenty-four (24) hour period. 

Clerical and office employees receiving less than thirty-five dollars 
($35.00) per week shall not be emploj'ed for more than forty (40) 
hours in an}^ one (1) week. An exception is granted to the above 
limitations whereby during any twelve (12) weeks in any one calen- 
dar year clerical and office employees may be permitted to work 
forty-five (45) hours in any one (1) week. 

These standard provisions do not apply to executive, administra- 
tive and supervisory employees who receive thirty-five dollars 
($35.00) or more per week, nor to watchmen who may be permitted 
to work fifty-six (56) hours per week, but not more than six (6) da3'S 
in any seven (T) day period, nor to employees engaged in prepara- 
tion, care and maintenance of plant and machinery and facilities 
of and for production who shall not be peruiitted to work more than 
forty-five (45) hours in any one (1) week, nine (9) hours in any 
twenty-four (24) hour period, nor six (6) days in any one (1) week, 
except in case of breakdowns and emergencies and the extra hours 
of work shall be reported to the Code Authority. These employees 
shall be paid one and one-third (II/3) times their normal rate for 
all hours worked in excess of the above limitations, and they shall 
be limited to five percent (5%) of all employees. 

WAGES 

The miniuium rate of pay is established at thirty-seven and one- 
half cents (3Ty2<') per hour for male emploj^ees and thirty-two and 
one-half cents (321/2^) per hour for female employees. 

Learners are defined as employees who prior to their employ- 
ment as such have not previously worked in the Industry in excess 

(120) 



121 

of two (2) months. Such learners shall be paid not less than thirty- 
two and one-half cents (321/2^) per hour and the number of such 
learners shall not exceed in any calendar month five percent (5%) 
of the total number of employees. Employees shall not be so 
classified in excess to two (2) months. 

The minimum rates established for clerical and office employees 
are fifteen dollars ($15.00) per week in cities of over 500,000 popula- 
tion or in the immediate trade area of such city, and not less than 
fourteen dollars ($14.00) per week elsewhere. An exception to the 
above minimum rate is granted for office and errand boys who may 
be paid not less than eighty percent (80%) of said minimum rate, 
providing that the total number of such office and errand boys 
shall not exceed five percent (5%) of the total number of em- 
ployees. 

ECONOMIC EFFECTS OF THE OODE 

The Clock Manufacturing Industry has suffered most severely 
during the depression, however, in spite of their depressive condi- 
tion they have rehabilitated the Industry to a certain extent by 
voluntarily adopting the Code submitted to the Administration 
early in August 1933. The voluntary application of this unap- 
proved Code upon the Industry has increased the employment ap- 
proximately thirty-nine percent (39%) over the number of em- 
ployees for the year 1932, and has increased the factory payrolls 
approximately seventy-two percent (72%) during the same period. 

FINDINGS 

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

We find. that: 

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

(b) Said Industry normally employ's not more than 50,000 
employes; and is not classified by us 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- 



122 

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, the National Industrial Recovery 
Board has approved this Code. 

For the National Industrial Recovery Board: 

W. A. Harriman, 
Administrative Officer. 
February 2G, 1935. 



CODE OF FAIK COMPETITION FOR THE CLOCK MANU- 
FACTURING INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Recovery 
Act, this Code is established as a Code of Fair Competition for the 
Clock ]\Ianiifacturing Industry and its provisions shall be the stand- 
ards of fair competition for such industry and shall be binding 
upon every member thereof. 

Article II — Definitions 

Section 1. The term " Industry " as used herein includes the busi- 
ness of producing and selling, by the producer in the United States, 
clocks, timing mechanisms, clock-driven time switches sold to serve 
the dual purpose of clocks and switches, and watches having less 
than seven jewels or parts thereof, and such branches or subdivisions 
thereof as may from time to time be included under the provisions 
of this Code, except where such article is made or used by the pro- 
ducer as a part of any article other than those mentioned herein and 
included under some other code approved by the President. 

Section 2. The term " Employee " as used herein includes any and 
all persons engaged in the Industry however compensated, except 
a member of the Industry. 

Section 3. The term " Employer " as used herein includes anyone 
by whom such employee is compensated or employed. 

Section 4. The term " Member of the Industry " means and in- 
cludes any person, firm, partnership, association, corporation, trustee, 
or receiver operating a plant or plants in the United States for 
the production of the articles covered in Article II, Section 1 hereof, 
except where any of the foregoing manufacture such articles to be 
made or used by the producer as a part of any article other than 
those mentioned in Section 1 and included under some other code ap- 
proved by the President. 

Section 5. The terms " President ", "Act ", and " Board " as used 
herein mean respectively the President of the United States, the 
National Industry Recovery Act, and the National Industrial Re- 
covery Board. 

Article III — Hours 

Section 1. No factory employee shall be permitted to work more 
than forty (40) hours per week or more than ei^ht (8) hours in any 
twenty-four (24) hour period or more than six (6) days in any seven 
(7) day period, except during twelve (12) weeks in any one calendar 
3'ear employees may work forty-five (45) hours in any one week, 
but not more than nine (9) hours in any twenty-four (24) hour 
period. 

(123) 



124 

Section 2. Xo person einploved in office or clerical work, receiving 
less than thirty-live dollars ($35.00) per week, shall be permitted 
to work in excess of forty (40) hours per week, except that during 
any twelve (12) weeks in any one calendar year they may be per- 
mitted to work fortj-five (45) hours in any one week. 

(a) The provisions of Sections 1 and 2 of this Article shall not 
api)ly to the following: 

(1) Executive, administrative and supervisory employees, outside 
salesmen and outside service men, who receive thirty-five dollars 
($35.00) or more per week. 

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

(3) Emplo3'ecs engaged in the preparation, care and maintenance 
of plant and machinery and facilities of and for production shall 
not be permitted to Avork more than forty-five (45) hours in any 
one (1) week, or nine (9) hours in any twenty-four (24) hour period, 
nor more than six (6) days in an}^ one (1) week, except in the case of 
breakdowns and emergencies, in which event the nature of the 
breakdowns or emergencies and the extra hours worked shall be 
reported to the Code Authority. Such employees shall be paid at 
one and one-third (1%) times their nonnal hourly rate for all hours 
worked in exces-s of the above limitations. This paragraph shall 
apply at no time to more than five per cent (5%) of all employees. 

Sectiox. 3. No employer shall knowingly permit any employee 
to work for any time which, when added to the time spent at w^ork 
for another employer or employers in this Industry or other 
Industries, exceeds the maximum permitted herein. 

Article IV — Wages 

Section. 1. No male employee shall be paid in any pay period 
less than at the rate of thirty-seven and one-half cents (37i/2^) per 
hour, and no female employee shall be paid in any pay period less 
than at the rate of thirty-two and one-half cents (321/2^) per hour, 
except as otherwise herein provided. 

Section 2. Learners shall be paid not less than at the rate of 
thirty-two and one-half cents (321^^) per hour. The total number 
of such learners shall not exceed in any calendar month five per 
cent (5%) of the total number of employees covered by the provi- 
sions of this Article. 

Learners are defined as those employees who, prior to their em- 
ployment as learners shall not have previously worked in the In- 
dustry for a period in excess of two (2) months, neither may such 
employees be classified as learners by the emj^loyer by whom they 
are employed for a period in excess of two (2) months. 

Section 3. A person may be employed as an apprentice by any 
member of the Industry at a wage lower than the minimum wage, 
or for an}^ time in excess of the maximum hours of labor, estab- 
lished in this Code, if such member shall have first obtained from 
an Agency to be designated or established by the Secretary of 
Labor, a certificate permitting such person to be employed in con- 
formity with a training program approved by such Agency, until 
and unless such certificate is revoked. 



125 

(a) The term " Apprentice ", as used herein shall mean a person 
of at least 16 years of age who has entered into a written contract 
with an employer or an association of employers which provides 
for at least 2,000 hours of reasonably continuous employment for 
such person and his participation in an approved progi-am of train- 
ing as hereinabove provided. 

Section 4. 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 au- 
thorizing such person's employment at such wages and for such hours 
as shall be stated in the certificate. Such authority shall be guided 
by the instructions of the United States Department of Labor in 
issuing certificates to such persons. Each employer shall file 
monthly with the Code Authority a list of all such persons employed 
by him, showing the wages paid to, and the maximum hours of 
work for such employees. 

Section 5. Office and clerical employees shall be paid not less 
than at the rate of fifteen dollars ($15.00) per week in cities of over 
500,000 population or in the immediate trade area of such city, and 
not less than fourteen dollars ($14.00) per week elsewhere, except- 
ing office and errand boys who may be paid not less than eighty 
per cent (80%) of said minimum wage. The total number of such 
office and errand boys shall not exceed five per cent (5%) of the 
total number of employees. 

Section 6. An equitable adjustment shall also be made of com- 
pensation in excess of such minimum rate by all members of the In- 
dustry who have not heretofore made such an equitable adjustment 
and within sixty (60) days of the effective date hereof each em- 
ployer shall report to the Code Authority, for submission to the 
Board, the action taken by such employer in pursuance of this pro- 
vision, provided, however, that in making said adjustments within 
said sixty (60) days, hourly, weekly or piece work rates shall not 
be reduced. 

Section 7. In cases of employees performing work for which they 
are paid per piece of work performed, the employer shall make up the 
deficiency in pay if the amount is less than could be obtained by the 
use of the minimum hourly rate over the pay period. 

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

Section 9. Wages shall be paid at least semi-monthly in lawful 
currency or by negotiable check, payable on demand. These wages 
shall be exempt from any payments, 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. (a) No person under sixteen (16) j^ears of age shall 
be employed in the Industry. 

(b) No person under eighteen (18) years of age shall be employed 
in occupations hazardous in nature or dangerous to health. In any 
State an employer shall be deemed to have complied with this pro- 



12G 

rision 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 cmplo3'ee is 
of the required age. AVithin sixty (CO) days after the approval of 
this Code, the Code Authority shall submit to the Board for ap- 
proval a list of such operations and occupations. 
Seutiox 2. It is hereby provided : 

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

(b) That no emplo^^e and no one seeking emploj'ment shall be 
required as a condition of emplo3'ment to join any company union 
or to refrain from joining, organizing, or assisting a labor organiza- 
tion of his own choosing, and 

(c) That emploj-ers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of employment, 
ai>proved or prescribed by the President. 

Sectiox 3. No emploj^er shall reclassify employees or duties of 
occupations performed or engage in any subterfuge so as to defeat 
the purposes of the provisions of the Act or of this Code. 

Section 4. Every employer shall provide for the safety and health 
of employees during the hours and at the places of their employ- 
ment. Standards for safetj^ and health shall be submitted by the 
Code Authority to the Board for approval within three (3) months 
after the effective date of the Code. 

Section 5. No provision in this Code shall supei*sede any State 
or Federal law which imposes upon emplo3^ers more stringent re- 
quirements as to age of employees, wages, hours of work, or as to 
safety, health, sanitary or general working conditions, or insurance, 
or fire protection, than are imposed by this Code. 

Section G. Within ten (10) days of the effective date each employer 
shall post, and thereafter maintain, in conspicuous places accessible 
to employees full coj^ies of this Code and any amendments or modi- 
fications which may later be approved. Every member of the 
Industiy shall compl}' with all rules and regulations relative to the 
posting of provisions of the Cock' which may from time to time be 
prescribed by the Board. 

Section 7. (1) A person ma}- 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 officer 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. 



127 

(2) Any employer engaging such a p)erson shall keep such certifi- 
cate on file and shall file with the Code Authority for the industry 
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 — Administkation 

Section 1. A Code Authority is hereby established to cooperate 
with the Board in the administration of this Code and shall consist 
of five (5) individuals, selected by the members of the Industry in 
the manner hereinafter provided to serve for a period of one year or 
until their successors are chosen. The Board, in its discretion, may 
appoint not more than three (3) additional members, without vote, 
to represent the Board. These three members shall serve without 
compensation from the Industry. 

Section 2. The selection of the five individuals constituting the 
Code Authority shall be made by the method of voting as provided 
in Section 3 of this Article. 

Section 3. Only members of the Industry comj)lying with the pro- 
visions of this Code and paying their assessments (unless otherwise 
e-xempted) if levied in accordance with a basis of assessments to be 
approved by the Board are to participate in the benefits and selec- 
tion of the Code Authority and such members shall be entitled to vote 
for the members of the Code Authority in the following manner, 
to be computed on the basis of such member's net annual dollar sales 
of the products of this industry for the previous calendar year as 
follows : 

1 Vote for each $50,000 or fraction thereof, up to $1,000,000 
and 

1 Additional Vote for each $100,000 or fraction thereof, from 
$1,000,000 to $2,000,000 and 

1 additional Vote for each $200,000 or fraction thereof, in 
excess of $2,000,000 
provided, further, that at such election of the members of the Code 
Authority two or more of the four members of the Industry having 
the greatest number of votes, when voting together, shall not cast 
a majority vote, unless one or more members of the ihdustr}^ having 
the right to cast at least ten (10) per cent of the total votes and 
not included among said four, shall vote with them. 

All questions as to the number of votes which each member shall 
be entitled to cast at a meeting of the members of the Industry to 
elect a Code Authority shall be determined by the Secretary, as 
provided above. Any member of the Industry may vote by proxy 
in writing duly executed by such member of the Industry and filed 
with the Secretary. Any such proxy may be for such elections or 
be a general proxy for such elections that may be held until such 
proxy shall have been revoked in writing duly executed by the 
member, who gave such proxy, and filed with the Secretary. 

Section 4. At each election of the Code Authority, members of 
the Industry having the right to cast at least seventy-five per cent 
(75%) of all the votes that might be cast at such election, if all the 



128 

members were present thereat, f<hall constitute a {luorum for the 
transaction of business at such election. 

Skction 5. Vacancies in the personnel of the Code Authority 
selected b}' the Industry shall be filled by the remaining members 
of the Code Authority subject to the approval of the Board. 

Sectiox 6. Each trade or industrial association directly or in- 
directly participating in the activities of the Code Authority shall 
impose no inequitable restriction on membership and shall submit 
to the Board true copies of its articles of association, by-laws, reg- 
ulations, and any amendments when made thereto, together with 
such other information as to memberships, organization, and ac- 
tivties as the Board mav deem necessary to etfectuate the purposes 
of the Act. 

Section 7. 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 Board may prescribe such hear- 
ings as it may deem proper; and thereafter if it shall find the Code 
Authority is not truly representative or it does not in other respects 
compl}' with the provisions of the Act may require an appropriate 
modification of the Code Authority. 

Sp:ctiox 8. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purposes. Nor 
shall any member of the Code Authority be liable in any manner tcr 
anyone for any act or omission of anj^ 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 nuilfeasance or 
nonfeasance. 

Section 9. If the Board 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 Board 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 Board approves or unless it shall fail to dis- 
approve after thirty (30) daj's notice to it of intention to proceed 
with such action in its original or modified form. 

Section 10. The Clock INIanufacturing 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, poAvers and duties hereunder, such corporation or cor- 
porate form to be not for profit and to be known as the Clock Manu- 
facturing Industry Code Authority, Incorporated; provided that 
the powers, duties, objects and purjxjses of the said corporation 
shall, to the satisfaction of the Board be limited to the powers, duties, 
objects and purposes of the Clock Manufacturing Industry Code 
Authority as jorovided in this Code ; provided, further, that the exist- 
ence of the said corporation shall be during the term of the Code; 
and provided, further, that the Code Authority shall submit to the 
Board for its approval, its proposed Certificate of Incorporation and 



129 

proposed By-Laws, and no amendment of either shall be made with- 
out the like prior approval of the Board and provided, further, that 
the Code Authority shall submit, with its proposed Certificate 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 incorporated, as to the nature 
and extent of the jurisdiction, powers and authorities exercisable by 
the State in question and its a<rencies over the activities of the Code 
Authority as a corporation, supportinor such opinion by citation 
of relevant authorities, and supplementing the same with a table, 
certified to be complete, of all laws, statutes and other regulatory 
provisions governing corporations created pursuant to the laws un- 
der which the Code Authority seeks to be incorporated. 

If at any time, the Board 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 effectua- 
tion of the policies or purposes of the Act. it may, after such notice 
and hearing as it may deem necessary, require an appropriate modifi- 
cation of the structure of the Corporation, (if consistent with the 
law of the State of Incorporation), the substitution of a corporation 
created under the laws of another State in the same manner as the 
existing Code Authority, the substitution of a non-corporate Code 
Authorit_v truly representative of the Industry or such other actions 
as it may deem expedient. 

Section 11. Subject to such rules and regulations as may be issued 
by the National Industrial Recovery Board the Code Authority shall 
have the following powers and duties, in addition to those authorized 
by other provisions of this Code : 

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

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

(c) To obtain from members of the Industry such information 
and reports as are required for the administration of the Code. 
In addition to information required to be submitted to the Code 
Authority, members of the Industry shall furnish such statistical 
information as the Board may deem necessarj^ for the purposes re- 
cited in Section 3 (a) of the Act to such Federal and State agencies 
as it may designate ; provided that nothing in this Code shall relieve 
any member of the Industry of any existing obligations to furnish 
reports to any government agency. The Code Authority may require 
that any or all information be sworn to or otherwise certified or 
authenticated as it may prescribe. 

The information furnished to the Secretary upon request of the 
Code Authority shall be subject to check for the purposes of veri- 
fication, to the extent permitted by the Act. Such checking, when 
necessary, shall be done by certified, registered, chartered, or any 
other lawful practitioner of public accountancy designated by th:;> 
Code Authority, the cost of which examination shall be cleared as 
an expense of administering the Code. 

Any information furnished to the Secretary of the Code Authority 
by a member of the Industry in accordance with the provisions of 
the Code, ■vthich is considered of a confidential character by the said 



130 

member, shall be treated by the Secretary as confidential, and no 
disclosure thereof to the Code Authority or to an3'0ne, except to the 
Board in any manner shall be made other than in combination with 
similar information furnished by other members of the Industry, in 
which case the publication shall be made only in such manner as will 
avoid the disclosing separately of such confidential information. 
Information shall not be furnished to anyone by the Secretary ex- 
cept b}^ direction of the Code Authority. 

(d) To use such trade associations and other agencies as it deems 
projx'r for the carr^'ing out of any of its activities provided for 
herein, provided that nothing herein shall relieve the Code Au- 
thority of its duties or responsibilities under this Code and that 
such trade associations and agencies shall at all times be subject to 
and comply with the provisions hereof. 

(e) To make recommendations to the Board for the coordination 
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 su})port the adminis- 
tration of this Code and to maintain tlie standards of fair compe- 
tition established hereunder and to ellectuate 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 Board for its approval, subject to such 
notice and op})ortunity to be heard as it may deem necessary 
(1) an itemized budget of its estimated expenses for the fore- 
going purposes, and (2) an equitable basis upon which the 
funds necessary to support such budget shall be contributed by 
members of the Industry ; 

(c) After such budget and basis of contribution have been 
approved by the Board, 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 Industrj^ 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 Board. Only members 
of the Industry complying Avith the Code and contributing to the 
expenses of its administration as hereinabove provided, shall be 
entitled to participate in the selection of members of the Code 
Authority or to receiAc 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, except upon approval of the Board ; and no sub- 
sequent budget shall contain any deficiency item for expenditures in 
excess of prior budget estimates except those which the Board shall 
have so approved. 

(g) To recommend to the Board any action or measures deemed 
advisable, including further fair trade practice provisions to govern 



131 

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 Board, 
after such notice and hearing as it 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 formulat- 
ing fair trade practices to govern the relationships between em- 
ployers under this Code and under such other codes to the end that 
such fair trade practices may be pro]3osed to the Board as 
amendments to this Code and such other codes. 

Article VII — Unfair Trade Practices 

On and after the effective date of this Code, the following practices 
are hereby declared to be unfair methods of competition and viola- 
tions of this Code : 

Section 1. No member of the Industry shall give, permit to be 
given, or directly offer to give, anything of value for the purpose of 
influencing or rewarding the action of any employee, agent or rep- 
resentative of another in relation to the business of the employer of 
such emploj^ee, the principal of such agent or the represented party, 
without the knowledge of such employer, principal or party. Com- 
mercial bribery provisions shall not be construed to prohibit free 
and general distribution of articles commonly used for advertising 
except so far as such articles are actually used for commercial bribery 
as hereinabove defined. 

Section 2. 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 Industry secretly 
offer to extend to any customer any special service or privilege not 
extended to all customers of the same class for the purpose of 
influencing a sale. 

Section 3. Bendering or offering any valuable consideration to 
any purchaser, prospective purchaser, or dealer unless fair compensa- 
tion be ])aid therefor by such purchaser, prospective purchaser or 
dealer. This is not intended to prohibit a member supplying his 
own advertising matter to the general trade. 

Section 4. Making a concession in the price of any product, di- 
rectly or indirectly, under the guise of an advertising allowance. 

Section 5. Dating of invoices more than five (5) working days 
after date of shipment. 

Section 6. No member of the Industry shall ship goods on con- 
signment except under circumstances to be defined by the Code 
Authority, and approved by the National Industrial Becovery 
Board, where peculiar circumstances of the Industry requires the 
practice. This provision does not prohibit the return of merchandise 
on conditions specified by the Code Authority, for valid reasons, 
subject to the approval of the National Industrial Becovery Board. 

Section 7. Making any rebates to purchasers against stocks on 
hand in the event of decline in prices, except within such limitations 



132 

as may be specified by the Code Authority, after approval by the 
National Industrial Recover}'^ Board. 

Article VIII — ^Modification 

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

Section 2. This Code, except as to the provisions required by the 
Act, maj'^ be modified or amended on the basis of experience or 
changes in circumstances, such modifications or amendments to be 
based upon application to the National Industrial Recovery Board 
and after such notice and hearing as it shall specify, to become 
effective on approval of the President unless otherwise provided. 

Section 8. Tlie Code Authorit^^ may make recommendations for 
modification of tliis Code to the National Industrial Recovery Board 
which shall become effective as a part of this Code upon approval by 
the National Industrial Recovery Board after such notice and hear- 
ing as it may prescribe. 

Article IX — ^IVIonoplies, Etc. 

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

Article X — Effective Date 

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



Approved Code No. 551. 
Registry No. 1208-01. 



o 



Approved Code No. 552 
CODE OF FAIR COMPETITION 

FOR THE 

MUSIC PUBLISHING INDUSTRY 

As Approved on March 4, 1935 



ORDER 



Approvtkg Code of Fair Competition for the Music Publisiiino 

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 Music Publishing Industry, and hearino;s 
having been duly held thereon and the annexed reports on said 
Code of Fair Competition, containing findings with respect thereto, 
having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise ; 
does hereby incorporate by reference said annexed report and docs 
find that said Code complies in all respects with the pertinent pro- 
visions and will promote the policy and purposes of said Title of 
said Act; and does hereby order that said Code of Fair Competition 
for the Music Publishing Industry be and is hereby approved : 

PROVIDED, HOWEVER, that the approval of this Code, or 
anything contained therein, or in any amendments thereto, or in any 
rules or regulations adopted pursuant thereto, shall not be deemed 
or construed as approving, sanctioning, or condoning any of the acts 
alleged in tlie petition filed in the United States District Court for 
the Southern District of New York, August 30, 1934, and now pend- 
ing therein, entitled, United States vs. American Society of Compos- 
ers, Authors, and Publishers ,' Music Puhlishers'' Protective Associa- 
tion, et al., Equity No. 78-388, or in any amended or supplemental 
petition or petitions which may be filed therein, or any acts forbid- 
den in all}' decree or decrees which may be entered pursuant thereto. 

National Industrial Recovery Board, 
By W. A. Harriman, Admi/iiistra-tive Officer. 

Approval recommended : 
Jack B. Tate. 

Division Admin istrator. 

Washington, D. C, 

March 4, 1935. 

119376° 1603-34 35 (133) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the proposed Code of Fair Competition 
for the Music Publishing Industry. A public hearing was held on 
this proposed Code on Juh' 2G, 1931, and full opportunity was given 
to all interested parties to appear. 

The proposed Code covers two separate and divisional industries, 
namely. Standard Music Publishers and Popular Music Publishers, 
and consists of hour, wage, and general labor provisions, adminis- 
trative provisions and fair trade practice provisions. 

EXTENT OF THE INDUSTRY 

The Music Publishing Industry is a relatively small one insofar 
as number of employees, annual sales, or invested capital, are con- 
cerned, but its product probably touches the lives of more people 
than the product of any other industry in this country. It is hard to 
figure in the life of the average man or woman, a day in which at 
some time they are not in contact with music. 

Music is one of the most universally used commodities on the 
market today. It is becoming increasingly popular all the time, but 
even with this growing popularity there is still little known by the 
general public of the comparatively few men and women who are 
currently and constantly adding to our reservoir of music. Music 
is the '' raw material " which makes possible the commercial opera- 
tion of huge business enterprises; it is the keystone in the arch of 
the structure that sup})orts the entire amusement and entertainment 
indusliy, which annually derives from the American public a 
revenue of billions of dollars. 

During the years 1928 to 1930, according to the President's Com- 
mittee on Recent Social Trends, the American people spent annually 
$2,214,725,000 for commercial amusements. Each of these commer- 
cial enterprise groups, — motion pictures, radio, theaters, concert and 
dance halls, night clubs and cabarets, and even restaurants, are to a 
very large degree dependent for their existence upon music. Yet 
for every dollar paid by the American people for commercial amuse- 
ments, the creators receive less than one-tenth of 1 per cent. 

The commodities which the Industry vends are divided into two 
sharply defined classes. These two classes of music are produced 
by a substantially different group of publishers, known in the trade, 
as Popular ISIusic Publishers and Standard Music Publishers. It is 
estimated that there are about 75 music publishers in the United 
States, divided approximately into 30 Standard Music Publishers, 
and 45 Popular Music Publishers. The bulk of the total dollar 
volume is represented, however, by less than one half of the total 
number of establishments. 

(134) 



135 

Popular music, is made up of a constant procession of selections 
which "click" to a greater or less degree; are whistled and sung 
during a brief period by stars of the radio, stage, and private citi- 
zens; and then are more or less forgotten. In distributing them 
timeliness is the essence. Margins of gross profit are narrow, but the 
volume of any one number is large, and the turnover is very rapid. 
Popular music sales normally are from one-fourth to one-third of 
the total sales of all music. 

Standard music, is composed of numbers of more enduring popu- 
larity, many of them classical pieces and grand opera, together with 
exercise books, song-books, certain types of religious music, etc. 
Demand for them is constant. Turnover is comparatively slow. 
Volume on any one number is small. Gross profit margins are high. 
Standard music sales usually are two-thirds to three-fourths of the 
sales of all music. 

In geographical distribution the Music Publishing Industry is 
heavily concentrated in New York City, which alone normally ac- 
counts for about two-thirds of the total amount of music published. 
Massachusetts and Penns^dvania are next in importance, each repre- 
senting about 17 and 7 percent respectively of the total. The prin- 
cipal other states are, California, Ohio, and Illinois. New York City 
represents about 86 per cent of the total of popular music published, 
and about 51 per cent of the total of standard music. 

AA-EXUES OF DISTRIBUTION 

Both types of music, popular and standard are sold to ultimate 
consumers by the same groups of retail stores ; shops specializing in 
sheet music and musical instruments (these are tending to become 
less important), radio and music shops, variety stores, department 
stores, gift shops, drug stores in certain sections of the country, book 
stores, cigar stores, mail order houses, sport shops, and other mis- 
cellaneous tj'pes of retailers. It is estimated that between one-third 
and one-half of the total retail sales of the products of this Industry 
are made through variety stores, stores specializing in musical in- 
struments and sheet music, and radio and music stores. Publishers 
sell in considerable amounts direct to ultimate consumers and to 
commercial and institutional users — teachers, schools, orchestras, 
glee clubs, etc. Most standard publishers also perform a wholesaling 
function. 

VOLUME or SALES 

The Music Publishing Industry reported sales of $9,500,000 in 
1929. (There is probabl}^ an additional million in sales represented 
by firms who did not report.) During the period from 1929 to 
1933, the aggregate annual sales in dollar volume decreased from 
9.5 million to 5 million, representing a decrease of about 46 per cent. 
It is estimated that the total sales for 1934 will exceed 6 million, 
representing at least a 16 per cent increase in 1934 over 1933. 

E:vrPL0TMEXT 

The Music Publishing Industry is essentially a " white collar " 
business with no machine workers, and comparatively few manual 



136 

workers of any sort. The emplo^^ees of a music .publisher are prac- 
tically confiaed to executives, editorial staff, clerical workers of 
various types, salesmen, song pluggers, etc. 

In INIarch 1929 there were more than 1,139 wage earners employed 
in the Music Publishing Industry. In March 1933 and March 1934 
there were 770 and 793 respectively. The total for 1933 was 33 per 
cent under that of 1929, and even though employment had increased 
about 7 per cent between March 1933 and March 1934, it was still 30 
per cent less than March 1929. It is estimated that the average 
for 1934 will be about 850. 

In 1929 only 21 per cent of these employees worked 40 hours or 
less. About 72 per cent worked between 40 and 45 hours, and 9 per 
cent between 45 and 50 hours. In other words more than 90 per 
cent worked 45 hours or less per week. In March 1933, 50 percent 
of all the reported employees worked 40 hours or less, and in 1934, 
84 per cent worked 40 hours or less. For the last two yearly periods 
those working 45 hours or less, wem 92 per cent and 96 per cent re- 
spectively, of the total. The average work week in March 1929 was 
less than 42 hours, and about 39 hours in March 1933. 

WAGES 

The figures submitted by the Industry show that for the corre- 
sponding week in March 1929, 1933, and 1934, those working below the 
codal mmimum of $15.00 per week, were 10.5, 18.5, and 7 percent re- 
spectively of the total. In other words although there was a material 
decrease in the weekly wages between 1929 and 1933 in the lower 
brackets, there was a decided increase between 1933 and 1934. Those 
employees who appear in the upper wage brackets did not experience 
decreases to the same degree as those in the lower brackets between 
1929 and 1933. Their status, therefore, remained about the same 
after the President's Eeemployment Agreement was adopted. 

The average weekly wage in 1933 was $23.92, or 20 per cent less 
than the 1929 average of $30.40. The average weekly wage for 1934 
of $32.55 was not only an increase of about 25 per cent above the 
1933 average, but was also about 6 per cent above the 1929 average. 
It is estimated that total wages decreased 40.4 per cent between 
1929 and 1933, and increased about 30 percent between 1933 and 1934. 
For the year 1929 and 1933 the average per cent that the total wages 
were of the gross income, was about 20 per cent. During 1934 this 
per cent increased to about 25 per cent. 

FIXDING8 

The Deputy Administrator in his final report to us on the proposed 
Code of Fair Competition for the Music Publishing Industry, having 
found as herein set forth, and on the basis of all the proceedings 
on this matter : 

We find that: 

(a) The said Code is well designed to promote the policies and 
purposes of Title I of the National Industrial Recovery Act includ- 
ing 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 



137 

of industry for the purpose of cooperative action amoncj trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanction and supervision, 
by eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue 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 emploj^s not more than 50,000 em- 
ployees; and is not classified bj' us as a major Industry. 

(c) The Code complies in all respects with the pertinent provi- 
sions of said Title of said Act, including without limitation, Sub- 
section (a) of Section 3, Subsection (a) of Section 7 and Subsection 
(b) of Section 10 thereof; that the groups submitting this Code are 
truly representative of the aforesaid Industry and the divisions 
thereof, and that the applicant groups impose no inequitable restric- 
tions on admission to membership therein. 

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

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

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

We believe the Code to be fair to labor, to the consumer, and to 
the Industry, and for these reasons, therefore, we approve this 
Code. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Ad ?7um strati ve Officer. 
March 4, 1935. 



CODE OF FAIR COMPETITION FOll THE MUSIC 
PUBLISHING INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Re- 
covery Act, this Code is established as a Code of Fair Competition 
for the Music Publishing Industry and its provisions shall be the 
standards of fair competition for such Industry and shall be bind- 
ing upon every member thereof. 

Article II — Definitions 

1. The term " Music Publishing Industry " as used herein in- 
cludes all persons, firms, partnerships, associations, corporations, 
or other entities engaged in the business of editing and preparing 
for publication and publishing musical works in printed or other 
form; and all such persons or entities also engaged in the business 
of importing musical works in printed form; provided, however, 
that the term " Music Publishing Industry " shall not be construed 
bo include the renting or licensing activities of any person, firm, 
partnership, association, corporation, or other entity pertaining to 
public performance or mechanical reproduction rights. 

2. The term " Standard Music Publishing Division ", as used 
herein includes any person, firm, partnership, association, corpora- 
tion, or other entity engaged in the business of editing and prepar- 
ing for publication and publishing in printed or other form, musical 
works (whether copyrighted or not) of the character generally 
desifi^nated in the Industry as standard, or educational, or classical 
music; and all such persons or entities also engaged in the business 
of importing such musical works in printed form. 

3. The term " Popular Music Publishing Division " as used herein 
includes any person, firm, partnership, association, corporation, or 
other entity engaged in the business of editing and preparing for 
publication and publishing in printed or other form, musical works 
(whether copyrighted or not) of the character generally designated 
in the Industry as " Popular Music "; and all such persons or entities 
also engaged in the business of importing such musical works in 
printed form. 

4. The terms " member of the Industry " and " member of the 
Division " as used herein include, but without limitation, any indi- 
vidual, partnership, association, corporation, or other form of enter- 
prise engaged in the Industry or in a Division thereof, either as an 
employer or on his or its own behalf. 

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

G. The t€rm " employer " as used herein includes any person or any 
entity by whom such employee is compensated or employed. 

(138) 



139 

7. The term '" Son;^- l^Iu^^er '' a;- ii>ed licrcin sliall (k'si^natc any 
iiKlividual S0I0I3' ciiiployed by any nieinbt'i' <»l tiie Indiistiy whose 
})rincipal business is to induce })erf<)nners to inehide in their rejiei'- 
toire the songs published by his ein})h)yei', or liiiuself to perform such 
songs oil occasion. 

8. The term " Code Authority " as used herein is defined to mean 
the Administrative Agency of each Division. 

9. The term '"Music Publishers' Coordinating Connnittee " or 
" Committee *' as used herein is defined to mean the Coordinating 
Agency of the ]Music Publishing Industrj'. 

10. The terms '* Pi-esident *', "Act ", and " National Industrial 
Recovery Board " or "' Board "' as used herein mean respectively, the 
President of the United States. Title I oi the National Industrial 
Recovery Act, and the National Industrial Recoverv Board, or its 
successors in office. 

Article III — Hours 

Section 1. Ma,':'nnum Hours. — (a) No employee shall be permit- 
ted to work in excess of thirty-ei^ht (;}8) hours in any one week, or 
seven (7) hours in any twenty-four (24) hour period, (beginning 
at midnight), except as herein otherwise provided. 

(b) A tolerance period not to exceed forty (40) hours in any one 
year, shall be allowed for each employee indispensably necessary to 
the conduct of business during peak periods, during which time sucli 
employees may be permitted to work not exceeding forty-six (4G) 
hours per week; provided, however, that for any hours or fraction 
of hours worked in excess of seven (7) hours in any twenty-four (24) 
hour period, or thirty-eight (38) in any one week, any such em- 
ployee shall be paid at the overtime rate of time and one-half. 

Section 2. Exceptions as to hoiws. — The provisions of this Article 
shall not ai)ply to outside salesmen and such representatives known 
in the Industiy as '' song pluggers '■. to employees engaged in emer- 
gency repair, or emergency maintenance work, or to persons em- 
])loyed in a managerial or executive capacit}^ who are paid regularly 
thirty-five dollars ($35.00), or more per week; provided, however, 
that employees engaged in emergency maintenance and/or emergency 
repair work shall be paid at one and one-half (IV2) times their nor- 
mal hourly rate for all Innirs worked in excess of eight (8) hours ])er 
day or forty (40) hours ])er week. 

Section 3. Standard Wceh. — No employee shall be permitted to 
work more than six (6) days in any seven (7) day period, except 
tliose employees mentioned in the foregoing Section 2. 

Section 4. Employment hij Several Employers. — No employer shall 
knowingly permit any employee to work for any time which, when 
added to the time spent at work for another employer or employers in 
this Industry, (or otherwise), exceeds the maximum permitted 
herein. 

Article IV — Wages 

Section 1. Minhmim Wages. — Except a,s hereinafter provided, no 
employee shall be paid in any pay period less than at a rate of fifteen 
dollars ($15.00) per week. 

110370° 1603-34 35 2 



14U 

Skctu)X 2. No oinployeo eiiiiaaod in part-time oinpl(»yiiiont. shall 
be {)ai(l at a rato l('>s than forty-two cents (4'2(,') per hour. 

Skctiox 8. Ottice boys, office i»irls. and messengers under 18 j-ears 
of a«^e may be employed at a rate not less than eiglity (80) per cent 
of the mininuun wage provided in Section 1. No more than twenty 
(20) per cent of the total mimber of employees of any member of 
the Industry shall be in this category at any one time; provided, 
however, that each member of the Incbistry shall be entitled to emjdoy 
at least one such employee. 

Skctiox 4. The foregoing provisions are intended to establish only 
minimum and not maximum wage requirements. 

Sf.ctiox T). Fenuile emjjloyees performing substantially the sam<' 
work as male employees shall receive the same rate of pay as male 
employees. 

Skctiox G. A pei'son whose earning capacity is limited hccausc 
of age, physical or mental handicap, or other infirmity, may be em- 
l)loyed on light work at a wage below the minimum established by 
this Code, if the employer obtains from the State Authority desig- 
nated by the United States Department of Labor, a certificate 
authorizing his empl()3'ment at such wages and for such hours as 
shall be stated in the certificate. Each employer shall file monthly 
with the Code Authority a list of all such jiersons employed by 
him, showing the wages paid to, and the maximum hours r)f work 
for, such emplo3-ee. 

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

Section 8. No employer shall make an}' reduction in the full- 
time weekly earnings of any employee because his normal full-time 
weekly hours are reduced by the provisions of Article III of this 
Code. In no event shall hourly rates of pay be reduced because 
of the jirovisions of this Code, irrespective of whether comj^ejisation 
is actually paid on an hourly, weekly, or other basis, nor shall any 
wages be at less than the minimiuu rates herein pi'ovided. 

Within thirty (30) days of the effective date hereof (unless such 
adjustment has been made theretofore), each employer shall adjust 
tlie schedule of wages of his employees in such an cqviitable manner 
as will conform to the provisions hereinabove set forth, and still ])re- 
serve wage differentials reasonably proportionate to those in eil'ect 
prior to the effective date of this Code, except that this paragraph 
shall not apply to employees earning thirty-five dollars ($35.00) 
per week or more. 

Sectiox 9. No employer shall modify his or its established prac- 
tices as to vacation periods, lea^•es of absence, and/or temporary 
absences from work with the purpose and elfect of reducing such 
privileges heretofore granted employees. 

Sectiox 10. An employer shall make payment of all wages due, 
at least every two weeks, and salaries at least at the end of every 
month in lawful currency or by negotiable check therefor, payable 
on demand. If wages are paid by check, the employer shall provide 
reasonably accessible facilities for cashing checks at face value with- 
out expense to the employee. The employer shall also provide such 



141 

identification as Is necessary to utilize these facilities. These wages 
shall be exempt from any charges, fines, or dechictions; or ])aynient of 
pensions, insurance or sick benefit otiier than those voluntarily ])aid 
by the wage earners or required by State law. 

Employers or their agents shall not accept directly or indirectly 
I'ebates on such wages or salaries, or give anything of value or ex- 
tend any favor to any person for the purpose of influencing rates of 
wages or working conditions of their employees. 

Aktici.e V — (texkkal Labok and Other Pkovisioxs 

Section 1. Ohihl Labor. — On and after the effective date of this 
Code, no person muler sixteen (16) years of age shall be employed in 
the Industry. In any State any employer shall be deemed to have 
complied with this provision as to age if he shall have on file a 
certificate or permit, duly signed by the Authorit}^ in such State 
empowered to issue employment or age certificates or permits, show- 
ing that the employee is of the required age, except that persons 
under the age of sixteen (IG) may be employed solely as performers, 
subject to the local laws, and regulations of the Code Authority- 

Section 2. (a) Pvovhlons from the Act. — Employees shall have 
the right to organize and bargain collectively through representatives 
of their own choosing, and shall be free from the interference, 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 protectioji. 

(b) Xo employee and n.o one seeking employment sliall be required 
as a condition of employmejit to join an}- company union or to refrain 
from joining, organizing, or assisting a labor organization of his 
own cho(jsing, and 

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

Section 3. Evaaion. Through Suhterfugc. — No em])loyer shall 
reclassify emj)loyees or duties of occupaticm ])erformcd or engage in 
any other subterfuge so as to defeat the purposes or provisions of 
the Act or of this Code. 

Section 4. No em])loyee now employed at rates 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. Standard.^ for Safety arid Health. — Every emijloyer 
shall provide for the safety and health of employees during the lioiirs 
and at the places of their employment. Standards for safety and 
health shall be submitted by the Code Autliority to the National 
Industrial Recovery Board within sixty days after the effective date 
of the Code. After approval, &ucli standards shall become the mini- 
nunn standards of safety and health for all members of the Industry. 

Section 6. State la/cs.—'So provision in this Code .shall supersede 
any State or Federal Law which imposes on employers more strin- 
gent requirements as to age of employe<^s, wages, hours of work, or 
as to safety, healtli. sanitai-y. or general working conditions, or in- 
surance, or fire protection, than are imposed In^ this Code. 



142 

Section 7. Po.^t'/ni/ — All oiiiployors shall post aiul keep posted 
copies of the full labor provisions of thin Code in conspicuous places 
readily accessible to all employees. Every employer shall comply 
with all rules and reirulatio.ns relative to the postin<j of provisions 
of Codes of Fair Comi)etition which may from time to time l)e pre- 
scribed by the National Inihistrial Recovery Board. 

Sectiox 8. No employee shall be dismissed or demoted for makinf; 
a complaint or giving evidence with respect to an allef^ed violation of 
any of the ^jrovisioiis of any Code. 

Article VI — Oroanizatiox. Powers axd Dities uy the Code 

Authorities 

Section 1. Organization — (a) A Code Authority consisting C)f 
five (5) members is hereby established for the Standard Music Pub- 
lishinp: Division. The members of the Code Authority for this Divi- 
sion shall be selected in the followin<; manner, subject to the approval 
of the Xaticmal Indu.strial Recover^' Board. 

Four (4) members of the Code Authority, not more than one (1) 
of whom shall be from any one member of the Division, including 
subsidiaries or affiliates thereof, shall be elected by the members of 
the Music Publishers' Association of the United Stafps within sixty 
(60) days after the effective date of this Code. 

One (1) member of the Code Authority shall be elected by the 
members of the Division who are not members of the Music Pub- 
lishers* Association of the United States. The manner of electinj^ 
such member shall be as follows : 

The Code (\)mmittee of the Standard Music Publishers shall 
within thirty (80) days after the effective date of this Code, select 
a Nominating Committee of not less than three (3) non-Association 
members, which shall cause ballots to be prepared containing the 
names of three (3) nominees, not more than (1) of whom shall 
be from any one (1) member of the Division, including subsidiaries 
or affiliates thereof, and all of whom shall be non-Association mem- 
bers, with a blank space for one (1) additional nomine?. Said nomi- 
nees shall be fairly representative of large and small publishers and 
all other groups in the Division. 

ITpon the selection of the three (3) nominees, the Code Committee 
shall transmit within fifteen (15) days thereafter, a notice of elec- 
tion and ballot containing the names of the three (3) nominees and 
a blank space for one (1) additional nominee, to all ascertainable 
members of the Division who are not members of the Music Pub- 
lishers' Association of the United States, at least fifteen (15) days 
before the election, to be held at a time and place designated by the 
Code Committee, not to be later than sixty (00) days from the elTec- 
tive date of this Code. Each such member, voting either by regis- 
tered mail, by proxy, or in person, shall have one vote for the one 
member of the Code Authority to be elected by the non- Association 
members. The nominee receiving the largest number of the votes 
ca.st shall become the non-Association member of the Code Authority. 

The term of (;ffice of the members of the Code Authority shall be 
one year or until their successors are duly elected and (jualify. 

A^acancies in the membership of the Code Autliority for unexpired 
teinis <•<•( ;)'-io.n('d by death or resignation, shall be filled by selection 



J. '"J 



luade by the rt'iiuiininf? members of the Code Authoiity from Iho 
Industry group in whicli the vacancy occurred. 

Subsequent elections shall be conducted in the same manner as 
above described, except that the Code Authority of the Standard 
Music Publishing Division shall act in place of the Code Committee, 
unless the Xational Industrial Kecovery Board shall otherwise 
decide. 

(b) A Code Authority consisting of five (5) members is hereby 
established for the Popular Music Publishing Division. The mem- 
bers of the Code Authority shall be selected within sixty (CO) days 
after the effective date of this Code, in the following manner, sub- 
ject to the approval of the National Industrial Recovery Board: 

The Code Committee of the Popular Music Publishing Division 
shall cause ballots to be prepared containing the names of seven (7) 
nominees, not more than one of whom shall be from any one member 
of the Division, including subsidiaries or affiliates thereof, and not 
more than three (3) of whom may be members of the IMusic Pub- 
lishers' Protective Association, with blank spaces for four (4) addi- 
tional nominees. Said nominees shall be fairl}^ representative of 
large and small members and of other groups in the Division. 

The Code Committee shall transmit a notice of election and the 
ballot above provided for, to all ascertainable members of the Divi- 
sion at least fifteen (15) days before the election, to be held at a 
time and place designated by the Code Committee. 

Each member of the Division, voting either by registered mail, 
by proxy, or in person, shall have one vote for each member of the 
Code xVuthority. The five (5) nominees receiving the largest num- 
ber of the votes cast shall constitute the Code Authority. 

The term of office of the Industry members of the Code Authority 
shall be one year or until their successors are duly elected and 
qualify. 

Vacancies in the membership of the Code Authority for unexpired 
terms occasioned by death or resignation, shall be filled by selection 
made by the remaining members of the Code Authority from the 
Industry group in which the vacancy occurred. 

Subsequent elections shall be conducted in the same manner above 
described, except that the Code Authority of the Popular Music 
Publishing Division shall act in place of the Code Committee, unless 
the Xational Industrial Recovery Board shall otherwise decide. 

Sectiox 2. In addition to the membership as above provided, there 
may be one member, without vote and without cost to the Industry, 
for each of the Code Authorities established in accordance with Sec- 
tion 1 of this Article, to be known as Administration Member, to be 
ap]3ointed by the Xational Industrial Recovery Board to serve for 
such term as the Board may specify. 

Sfxtiox o. The Code Conunittee of the Standard Music Publish- 
ers and the Code Committee of the Popular Music Publishers, are 
hereby designated as temporary Code Authorities and authorized 
to perform the necessary administrative functions for their respec- 
tive Divisions until the Code Authorities hereinabove provided for 
shall have been selected. 

Section' 4. Each trade or industrial aasociation directly or indi- 
rectly participating in the selection or activities of the Code Au- 



144 

thority sluill (1) iinixjso no im'<jiiilablo I'ostrit-tions on incinbership, 
aiul (2) snbiiiit to tho National Indns^trial Reioverv Board true 
co])it's of its aitifles of association. by-]aw>. io<xulations, and any 
anu'iidint'tiis when niado thereto. t<»i>othor with siicli other informa- 
tion as t<i nienibershii). or<rani/ation. and activities as the National 
Industrial Recovery Boaid may deem necessary to efi'ectuati' the 
))urposes of the Act. 

Skction 5. In or(k>r tiiat both Code Aiithoi-ities shall at all tinges 
be trnh' representative of tlie Intbistry and in other respects comph' 
Avith the ])rovisions of the Act. the National Industrial Recovery 
Board may prescribe such hearinirs as the Board may deem proper; 
and thereafter if the Board shall find that a Code Authority is not 
truly rei)resentative or does not in other i-espects com{)ly with the 
))roA'isions of the Act. may requii'e an a])]>ro))riate modification of 
the Code Autliority. 

Skcttox G. Nothinji; contained in this Code shall constitute the 
members of a Code Antlun-ity ])artners foj- any ))urpose. Nor shall 
any member of a Code Authority be liable in any mannei- to anyone 
for any act of any other mendier. officer. a«2;ent or employee, of the 
Code Authority. Nor shall any mend)er of a Code Authority, exer- 
cisinjj I'easonable diligence in the conduct of his duties hereunder, be 
liable to anyone foi- any action or omission to act under this Code, 
exce]:)t for his own willful malfeasance or nonfeasance. 

Section 7. If the National Industrial Recovery Boai-d shall at 
any time determine that any action of a Code Autliority or any 
ajrency thei-eof may be unfaii' or unjust or contrary to th.e public 
interest, the National Industi'ial Recovery Board may re(]uire that 
such action be suspended to afford an op])ortunity for investioation 
of the merits of such action and further considei-ation by such Code 
Autliority or agency, pending final action which shall not be effective 
unless the National Industrial Recovery I^oai'd ai)proves or nnloss 
the Boai-d shall fail to disapprove after thirty (80) days' notice 
to the Board of intention to ])rocce(l witli siidi action in its original 
oi" modified form. 

Sk<tion 8. Poi')crs an<l Dnfhs. — Subject to such i-ules and regula- 
tions as may be issued by the National Industrial Recovery Board, 
each Code Authority shall have tlie following powers and duties, in 
addition to those authorized by other provisions of this Code : 

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

(b) To adopt l)ydaws and rules and regnhitions for its ]>rocedure. 

(c) To ol)tain fron) members of its Division through a confidential 
agency such information and repoi'ts as are i-equired for the adminis- 
tration of the Code. In addition to information required to be sub- 
mitted to the Code Authoi'ity. members of the Industry subject to 
this Code shall furnish such statistical information as the National 
Industrial Recovery Board may deem necessary for the i)urposes 
recited in Section 8 (a) of the Act to such Federal and State agencies 
as the Board nuiy designate: ]:)rovide(l that iu)thi)ig in this Code shall 
lelieve any member of the Inchistry of any existing obligations to 
furnish reports to any Goveiiniioital agency. No individual rei)()rt 
shall be disclosed lo any othei- inemlier of the liKhistiy or any other 



145 

liarly except to such other Governinental u<»"encies; a.s may be directed 
by the National Industrial Recovery Board, and to the Coordinatiiiir 
Committee upon its request pursuant to Article VII, Section 2 (b) of 
this Code. 

(d) To use such trade assltciations and other agencies as it deems 
proper, subject to the disappro^■al of the National Industrial Eecov- 
ery Board, for the carrying out of any of its activities i^rovided for 
lierein, provided that nothino; herein shall relieve the Code Author- 
ity of its duties or responsibilities under this Code, and that such 
irade associations and afjencies shall at all times be subject to and 
comply with the provisions hereof. 

(e) 1. It being- found necessary in order to support the adminis- 
tration of this Code, and to maintain the standards of fair compe- 
tition established hereunder, and to effectuate the policy of the Act, 
each 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 the funds which may be raised as hereinafter provitled and which 
sliall be held in trust for the purposes of the Code : 

(b) To submit to the National Industrial Recovery Board for the 
Board's approval, subject to such notice and opportunity to be 
heard as the Board may deem necessary, (1) an itemized budget of 
its estimated expenses for the foregoing purposes, and (2) an equi- 
table basis upon which the funds necessary to support such bud- 
get shall be contributed by members of the Industry within their 
respective divisions : 

(c) After such budget and basis of contribution have been ap- 
proved by the National Industrial RecoA'ery Board, to determine 
and olitain equitable contributions as above set forth by all mem- 
!)ors of the Division, and to that end, if necessary, to institute legal 
})roc(>ediug therefor in its own name. 

•2. Each member of the Industry shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Author- 
ity for his Division, determined as liereinabove provided, and sub- 
ject to rules and regulations pertaining thereto issued by the National 
Indiistrial Recovery Board. Only members of the Industry comply- 
ing v,-ith the Code and contributing to the expenses of its adminis- 
liation as hereinabove provided, (unless duly exempted from making 
-iich contribution), shall be entitled to participate in the selection 
iif members of the Code Authority, or to receive the benefits of any 
(»f its voluntary activities, or to make use of any emblem or insignia 
of the National Recovery Administration. 

-}. Neitlier Code Autliority shall incur or pay any obligation sub- 
stantially in excess of the amount thereof as estimated in its approved 
liudget. and shall in no event exceed the total amount contained in the 
approved budget, except upon approval of the National Industrial 
Recovery Board; and no subsequent bitdget shall contain any defi- 
ciency item for ex}5enditures in excess of prior budget estimates 
except those which the National Industrial Recovery Board shall 
liave so approved. 

(f) To reconmiend to the National Industrial Recovery Board 
a!iy actions or measures deemed advisable, including further fair 
trade practice provisions to govern members of the Industry in their 



146 

relations with cadi ntlior or with other industries; measures for 
imhistiial |)hiiuiifi«»-. and stabli/atiou of employnient; and inchidinp 
)nu<lifieations of this Code whicli shall heeonie efi'ective as part hereof 
upon approval bv the Xational Industiial Recovery Board after 
such notice and heai'iu'i' as the lioard may specify. 

(^) To appoint a Trade Practice Committee which shall meet 
■with the Trade I'ractice Conunittees appointed under such other 
codes as nuiy be related to the Industry for the pui-pose of formu- 
lating? fair trade praitices to j^overn the relationship between 
employers under this Code, and under such other codes, to the end 
that such fair trade pi-actices may be ])roposed to the National 
Industrial Recovery Board as amendments to this Code and such 
other codes. 

(h) To pi'o\ idc appropriate facilities for arbitration, and sul)ject 
to the a]>proval of the Xational Industrial Recovery Board, to ])re- 
iicribe rules of juocedure and rules to effect <ojui)liance witli awards 
and determinations. 

(i) Any interested parties shall have the right to ai)})eal to the 
National Industrial Recovery Board under .such rules and rejiulations 
as the Board may ])resci-ibe in resi)ect to any rule, re<rulation. or 
other course of action issued or taken by the Code Authority or 
those to whom it may delefrate any i)art of its powders, provided, 
Iiowever. that appeals on (juestions involving: the provisions of the 
Code ielatin<i' to hours, wao-es. and conditions of em])loymeiit shall 
l)e made in the first instance to the Music Publishing; Coordinatino; 
Committee, pursuant to such rules as said Connuittee, with the 
appi'oval of the National Industi-ial Recovery Board, may prescribe. 

AKiiri.i: VI r — OijcAxizATiox. PowKus Axn DuTiKS OF 'jun Mrsic 

PCHI.TSHIXG CoORUIXATIXfi COMMITPEK. 

Skctiox 1. Oi'(iai\'ri((tlon. — (a) There is hereby established a 
National Coordiiuitinii; Committee to be known as the Alusic Pub- 
lishing; Coordinating (^))nmittee. 

(b) The ]\Iusic Publishino- Coordinating; Committee shall con- 
sist of five (5) members to be select<^d as follow^s: 

Each Code Aulliority shall within fifteen (15) day.s after its 
election as hereinbefoi-e provided and anntially thereafter, desi<;nate 
two ('2) meml)ers of the Co(U'dinatini>' Committee, and alternate 
)nendoers, and in the absence of any member of the Committee his 
(lesifi;nated alternate shall be entitled to sit upon said Committee. 
The fifth member of the Committee shall be selected by the four 
members so cho.sen and an alternate for such fifth member shall be 
desi<i;nated in the same manner. In the event of any resignation 
or termination of inembershi]) on the Committee of any member 
for any cause, the Code Authority orioinally designating such 
nicmhei- shall (hsigiuite his successor and alternate. 

Tlie members of the Conunittee foi' the Divisions and their alter- 
nates shall be subject to j-ecall and replacement by the respective 
Code Authorities (lesignating such members. 

(c) P^ach member of the Conunittee shall have an equal vote upon 
all questions, motions, resolutions, or issues coming before said 
Conunittee. 



147 

(d) In addition to membership as above provided, there may 
be one member, without vote and without cost to the Industry, 
to be known as the Administration Member, appointed by the Na- 
tional Industrial Recovery Board to serve for such term as tlie 
Board may specify. 

Section 2. Powers and duties. — Subject to such rules and regula- 
tions as may be issued by the National Industrial Recovery Board, 
the Music Publishers' Coordinating Committee shall have the fol- 
lowing powers and duties : 

(a) To decide questions involving the provisions of this Code 
relating to hours, wages, and conditions of employment upon ap- 
jDeal from either Code Authority. 

(b) To obtain from the Code Authority such information and 
reports as are required for the administration of the powers and 
duties specified in paragraph (a) above. All such information and 
reports shall be kept confidential and shall not be disclosed except 
to a Governmental agency entitled thereto. 

^c) To adopt by-laws and rules and regulations for its procedure. 

(d) To adjust dilferences that may arise between Code Authori- 
ties, or between a member of a Division and a Code Authority to 
v,'hich such member is not subject. 

(e) To represent any Code Authority and/or member of the 
Division before the National Recovery Administration, upon the 
request of a Code Authority. 

(f ) To authorize the payment of its reasonably necessary expenses 
of administration, which are to be prescribed in an annual budget 
not to exceed five hundred ($500.00) dollars, which shall be submitted 
to the National Industrial Recovery Board for the Board's approval. 

(g) To determine and collect its cost of administration, as pro- 
vided herein, from the several Code Authorities, or in default thereof, 
from the respective members of the Divisions within their par- 
ticular jurisdiction. Said costs of administration shall be assessed 
against the respective Code Authorities on the basis of the number of 
emploj'ees in their respective Divisions for the preceding calendar 
3^ear. 

(h) To bring to the attention of the National Industrial Recovery 
Board provisions of other codes which apparently' conflict with the 
provisions of this Code, or which create unfair competitive condi- 
tions, and to make recommendations with respect thereto. 

(i) To bring to the attention of the proper Code Authorities ques- 
tions arising as to jurisdiction out of the definition set forth in 
Article II, and to recommend to such Code Authorities the action to 
be taken with respect thereto. 

(j) To recommend to the National Industrial Recovery Board 
any amendments to, additions to, or eliminations from this Code 
necessary to correct any such questions of jurisdiction or discrepan- 
cies, and any such amendment, addition, or elimination shall become 
effective upon approval by the National Industrial Recovery Board 
after such notice and hearing as the Board maj^ prescribe. 

(k) To make recommendations to the National Industrial Recov- 
ery Board for the coordination of the administration of this Code 
with such other codes, if any, as may be related to or affect members 
of the Industry. 



148 

(1) To UPC puch agfencies as it deems proper for the carrying; out 
of any of its activities provided for herein, subject to the disapproval 
of the National Industrial Recovery Board, provided that nothing 
herein shall relieve the Coordinatino; Committee of its duties or 
responsibilities under this Code anil that such agencies shall at all 
times be subject to and comply with the provisions hereof. 

(m) If the National Industrial Recovery Board at any time shall 
determine that any action of the Coordinating Committee or any 
agency thereof may be unfair or unjust or contrary to the public 
interest, the National Industrial Recovery Board may require that 
such action be suspended to afford an opportunity for investigation 
of the merits of such action and further consideration by the Co- 
ordinating Committee or agency pending final action which shall 
not be effected unless the National Industrial Recovery Board ap- 
proves or unless the Board fails to disapprove after thirty (30) days' 
notice to the Board of intention to proceed with such action in its 
original or modified form. 

(n) The powers, authority, and duties of the Music Publishers' 
Coordinating Committee relatin*^ to the administration and enforce- 
ment of this Code shall be strictly limited to those hereinbefore 
specifically granted or imposed. 

(o) Any interested parties shall have the right to appeal to the 
National Industrial Recovery Board under such rules and regulations 
as the Board may prescribe in respect to any ruling, regulation, or 
other course of action issued or taken by the Coordinating Commit- 
tee, or those to whom it may delegate any part of its power. 

Article VIII — Tkade Practice Rules 

1. No member of the Industry shall pay or give, directly or in- 
directly, or in any other manner present to any performer, singer, 
musician, or orchestra leader, employed by or otherwise performing 
under contract for another, or to their agents or representatives, any 
sum of money, gift, rebate, royalty, favor, or any other thing or act 
of value, when the purpose is to induce such person to sing, play, per- 
form, or to have sung, played, or performed, any works published, 
copyrighted, owned, and/or controlled by sucli member of the 
Industry. 

2. No member of the Industry shall furnish without charge to 
any performer, singer, musician, orchestra leader, or other profes- 
sional person, any copies other than regular professional copies of 
musical compositions published by such member or regularly pub- 
lished orchestrations of such musical compositions ; it being intended 
that no member of the Industry shall furnish special arrangements of 
tuch professional copies or such orchestrations to any performer, 
singer, musician, orchestra leader, or other professional person, or to 
any one designated by, or representing, or associated with such 
persons, nor pay such persons for the making of any such arrange- 
ments. If. however, any member of the Industry permits such 
persons to make a special arrangement, then no member of the Indus- 
try shall cxti-act })arts or otherwise copy such special arrangement 
thus made, cither in Avhole or in i)art, nor pay for such extractions 
or cojoying; but nothing contained herein shall be deemed to limit 
the transposition of any musical work from one key to another. 



149 

3. No member of the Industry shall : (a) purchase tickets, or pay 
for any advertisement in the program, for any benefit, performance, 
dance, or similar function, if the purchase is in effect a gift to, or 
a favor for, any performer; (b) pay for any advertisement in a cat- 
alogue of a mail-order house; (c) pay for any advertisement in a 
dealer's and/or distributor's catalogue or house-organ; (d) insert 
advertising in any trade paper, or other like periodical, if the ad- 
vertisement is intended to " puff ", flatter, compliment, or exploit 
any performer, singer, or orchestra leader. 

4. No member of the Industry shall pay, present, or otherwise 
give any money, service, favor, or thing or act of value, to any 
owner, lessee, manager, employee, or other pei'son in control of or 
interested in, any talking machine company, radio broadcasting 
company or station, electrical transcription company, motion picture 
company, or any place of public entertainment, for the privilege of 
performing, recording or reproducing, or having performed, recorded 
or reproduced, in such places, any works published, copyrighted, 
owned and/or controlled by such member of the Industry. Any 
member of the Industry may engage the facilities of a broadcasting 
studio or hire any theatre or other place of public entertainment for 
the purpose of having performed therein any of the musical compo- 
sitions published, copyrighted, owned and/or controlled by such 
member, provided however, that a public announcement is made at 
such performance that the performance is at the expense of such 
member and for the purpose of exploiting the said musical composi- 
tions of such member. 

5. No member of the Industry shall pay, or contract to pay any 
compensation, of any nature whatsoever, either as royalties or other- 
wise, to any performer, singer, actor, musician or orchestra leader, 
or any agent or representative theieof , either directly or indirectly, in 
connection with the publication in printed form of any song or other 
musical composition, unless such person shall be the bona fide com- 
poser, arranger, or writer of the words and/or music of such song or 
musical composition. 

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 part}^, 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 
ai'e actually used for commercial bribery as liereinabove defined. 

7. No member of the Industry shall give away, directly or indi- 
rectly, or through any subsidiary or associated company, or through 
any person employed by such member, copies of music or other 
musical material except for the bona fide purposes of " sampling ", 
either to the trade or to professional performers. All such copies 
of music and musical material given away under the provisions of 
this Article must be plainly marked in some appropriate manner 
to indicate that they are not for resale. Each member of the Indus- 
try shall keep in some appropriate manner an accurate account of 
the merchandise thus given away. 



150 

8. No member of the Industi\y shall publish advertising (Avhether 
printed, radio, display, or any other nature), which is misleading or 
inaccurate in any material particular, nor shall any member of the 
Industry in any ■way misrepresent any services, policies, values, 
credit terms, products, or the nature or form of the business con- 
ducted. 

9. No member of the Industry shall publish or sell any book of 
songs, pamphlet, song sheet, or other comj^ilation of songs, or the 
lyrics of songs, without the special written permission of the several 
copyright owners whose worKs appear in such compilation. 

10. No member of the Industry shall pa}', furnish, bestow, or in 
an}- other manner, directly or indirectly, present to any customer, 
teacher, or any person, firm, or corporation whatsoever, or to their 
agents, or any one representing them, any sum of money, gift, bonus, 
refund, rebate, royalty, service, or any other thing or act of value 
in excess of published rates and discounts, as a bribe, secret rebate, 
or other inducement to acquire any business or custom from such 
person, firm, or corporation. 

11. No member of the Industry shall pay transportation charges 
in any form whatsoever upon any musical works sold, consigned, or 
otherwise designated for shipment to a purchaser or prospective 
purchaser, except in instances where musical works are sold for cash 
or where delivery is to be made within the recognized local delivery 
limits of the city within which such member is situated. 

12. No member of the Industry shall wilfully induce or attempt 
to induce the breach of existing contracts between competitors and 
their customers or sources of supply, either foreign or domestic, or 
otherwise interfere with or obstruct the performance of any such 
contractual duties or services, with the purpose and effect of hamper- 
ing, injuring, or embarrassing competitors in their business. 

Article IX — Open Price Filing and Costs 

Section 1. "When the Code Authority for either Division by a 
majority vote shall deem it desirable, each member of the Division 
concerned shall file with a confidential and disinterested agent of 
the Code Authority, or, if none, then with such an agent designated 
by the National Industrial Kecovery Board, identified lists of all 
of his prices, discounts, rebates, allowances, and all other terms or 
conditions of sale, hereinafter in this article referred to as " price 
terms", which lists shall completely and accurately conform to and 
represent the individual pricing practices of said member. Such 
lists shall contain the price terms for all such standard 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 Code Authority for such 
Division shall have voted to establish this price filing system. 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. Sucli lists and revi- 
sions, together with the effective time thereof, shall upon receipt be 



151 

immediately and simultaneously distributed to all members of the 
Division and to all their customers who have applied therefor, and 
have offered to defray the cost actually incurred by the Code Author- 
ity 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 Division and their 
customers, as aforesaid; provided, that prices filed in the first in- 
stance shall not be released until the expiration of the aforesaid ten 
(10) day period. 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 National 
Industrial li^covery Board. Upon request the Code Authority shall 
furnish to the National Industrial Recovery Board or any duly desig- 
nated agent of the Board, copies of any such lists or revisions of 
j)rice terms. 

Section 2. A^^ien any member of the Division has filed any re- 
visions, such member shall not file a higher price Avithin forty-eight 
(48) hours. 

Section 3. No member of the Division shall sell or offer to sell 
any products of the Division, 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 Division 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 In- 
dustry 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. The standards of fair competition for the entire Indus- 
try 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 either Division of the 
Industiy or of any other Industry or the customers of either may at 
any time complain to the Code Authority of the Division that any 
filed price constitutes unfair competition as destructive price cutting, 
imperiling small enterprise or tending toward monopoly or the im- 
pairment of code wages and working conditions. The Code Au- 
thority of the Division concerned shall within five (5) d&js afford 
an opportunity to the member filing the price to answer such com- 
plaint and shall within fourteen (14) daj^s make a ruling or adjust- 
ment thereon. If such ruling is not concurred in by either party 
to the complaint, all pa])ers shall be referred to the Research and 
Planning Division of NRA which shall render a report and recom- 
mendation thereon to the National Industrial Recovery Board. 

(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. 

Section 6. Cost Finding. — Each Code Authority shall cause to be 
formulated methods of cost finding and accounting capable of use by 
all members of their respective Divisions, and shall submit such 
methods to the National Industrial Recovery Board for review. 



152 

If approved by the National Industrial Recovery Board, full infor- 
mation concerning such methods shall be made available to all mem- 
bers of the Division concerned. Thereafter, each member of the 
Division shall utilize such methods to the extent found practicable. 
Nothing herein contained shall be construed to permit either Code 
Authority, any agent thereof, or any member of the Music Publish- 
ing Industry to suggest uniform additions, percentages or differen- 
tials or other uniform items of cost which are designed to bring 
about arbitrary' uniformity of costs or prices. 

Article X — Export Trade 

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

Article XI — Modification 

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

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 
National Industrial Recovery Board, be modified or eliminated in 
such manner as may be indicated by the needs of the public, by 
changes in circumstances, or by experience. 

Article XII — Monopolies, Etc. 

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

Article XIII — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made more clifficult of consummation if prices of goods and 
services increase as raj^idly as wages, it is recognized that price in- 
creases, 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 XIV — Effectia-e Date 

This Code shall become effective on the second Monday after its 
approval by the National Industrial Recovery Board. 



Apprftvpd Code No. 552. 
Rt'fe'istry No. 5OJ^02. 



o 



Approved Code No. 553 

CODE OF FAIR COMPETITION 

FOR THE 

RESTAURANT TRADE IN THE TERRITORY OF 

HAWAII 

As Approved on March 5, 1935 



ORDER 



Code of Fair Competition for the Restaurant Trade in the 
Territory of Hawaii 

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 Restaurant Trade in the Territory of 
Hawaii, and hearings having been duly held thereon, and the Dep- 
uty Administrator having rendered his report, and the annexed 
report of the National Industrial Recovery Board 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise 
does hereby incorporate by reference the annexed report of the 
National Industrial Recovery Board, and does hereby concur in and 
adopt the findings of fact made therein, and does further find that 
the said Code complies in all respects with the iDcrtinent provisions 
and will promote the policy and purposes of said Title of said Act, 
and does hereby order that said Code of Fair Competition for the 
Restaurant Trade in the Territory of Hawaii, annexed hereto, be, 
and it is hereby approved, subject to the following conditions: 

(1) That all members of the Restaurant Trade as defined in the 
said Code under Article II, Sections 1 and 2 thereof, to the extent 
that thej' are engaging in the said trade in the Territory of Hawaii, 
shall be exempt from the provisions of the Code of Fair Competition 
for the Restaurant Industry, as approved on February 16, 1934, 
provided, however, that the exemption hereinabove granted does not 
extend to operators of " hotel restaurants." 

(2) This Code shall become effective thirty (30) days from the 
date hereof unless good cause to the contrary is shown to the Na- 

110420° 1003-39 35 (153) 



154 

tional Industrial Recovery Board within twenty-five (25) days and 
the National Industrial Recovery Board issues a subsequent order 
staj'ing or modifying this Order of Approval. 

National Industrial Recovery Board, 
By W. A. Harriman, Admmistratlve Officer. 

Approval recommended: 
Armin W. Riley, 

Division Achninistrator. 
Washington, D, C, 

March 6, 1035, 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Restaurant Trade in the Territory of Hawaii. This Code was spon- 
sored by the Hawaiian Territorial Restaurant Association. The 
Public Hearing on this Code was held in Honolulu, T. H.. on March 
30, 1934. Adjourned Public Hearings were held April 2, 1934 and 
April 11, 1934. There are approximately three hundred seventy-fivo 
(375) firms and approximately one thousand (1,000) employees 
in this Trade in Hawaii. The capital invested is slightly less than 
One Million Dollars ($1,000,000) and the annual trade is slightly 
less than Three Million Dollars ($3,000,000). The trade is domi- 
nated by the Orientals. There are fcAv large firms. 

HOURS AXD WAGES 

The Code provides for a maximum fifty-four (54) hour week 
for males and forty-eight (48) hour for females. Emploj^ees are 
not permitted more than six (6) days in any one week. Watchmen 
and guards are permitted to work fifty-six (56) hours per week but 
may not work more than thirteen (13) days in any fourteen (14) 
day period. Chief cooks who receive not less than Eighteen Dollars 
($18.00) per week are permitted to work seven (7) days per w^eek 
but not more than fifty-six (56) hours per week. Maintenance 
employees are exempted from the maximum hours but must be 
paid one and one-third (IV^) times their normal rate for all hours 
in excess of the basic hour maximum permitted other employees. 
In cases of emergency threatening damage or destruction to the 
property of a restaurant establishment, maintenance employees, 
watchmen, and guards may be permitted to work in excess of six 
(6) days per week. Executives receiving not less than Twenty- 
five Dollars ($25.00) per week are permitted to work in excess of 
the maximum hours. In restaurants emplojdng twenty (20) work- 
ers or less the number of workers who may be permitted to work 
overtime is restricted to one worker for every five (5) employed. 
In restaurants employing more than twenty (20) w^orkers the num- 
ber allowed to work overtime is restricted to one worker for every 
five (5) for the first twenty (20) workers, and to one worker for 
every eight (8) above twenty (20). 

Non-service employees must be paid not less than Thirteen and 
50/100 Dollars ($13.50) for a fifty-four (54) hour week in cities over 
25,000 and not less than Twelve aiid 50/100 Dollars ($12.50) per week 
in cities between 10,000 and 25,000 and not less than Eleven and 
50/100 Dollars ($11.50) per week in places with a population less 
than 10,000. Service employees must be paid not less than Twelve 

(155) 



156 

Dollars ($12.00) for a fifty-four (54) hour week in cities over 25,000 
and not less than Eleven Dollars ($11.00) per week in cities between 
10,000 and 25,000, and not less than Ten Dollars ($10.00) per week 
in i^laces with a population of less than 10,000. 
The Code prohibits child labor. 

ECONOMIC EFFECT OF THE COD'S 

The proposed Code will result in an average weekly increase in 
weekly wages of about thirty percent (30%) and an increase in em- 
ployment of about twenty-five percent (25%). 

FINDINGS 

• 

The Deputy Administrator for Hawaii in a letter addressed to 
the National Industrial Recovery Board has made a clear and de- 
tailed report of the present economic condition of this Trade. He 
has made lengthy and detailed findings of fact in regard to said 
Trade. The said report of the Deputy xVdministrator for Hawaii 
with the findings contained therein is incorporated by reference into 
this report. The National Industrial Recovery Board does hereby 
expressly concur in and adopt the findings contained in the said re- 
port of the Deputy Administrator for Hawaii. 

For these reasons, this Code has been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 

IVIarcii 5, 1935. 



CODE OF FAIR COMPETITION FOR THE RESTAURANT 
TRADE IN THE TERRITORY OF HAAVAII 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, this Code is approved as a Code of Fair Competition for 
the Restaurant Trade, and its provisions shall be the standards of 
fair competition for such Trade and be binding upon every member 
thereof. 

Article II — Definitions 

Section 1. The term " Restaurant Trade " as used herein shall 
mean the business of operating, directly or indirectly or through 
any subdivision, a restaurant, as hereinafter defined in Section 2. 

Section 2. The term ^''Restaurant " as used herein shall include 
any establishment which, for compensation, prepares and offers food 
for consumption either on any of its premises, or by catering and 
banquet service, or by box lunch service, or by curb service, and 
customarily serves at least ten (10) people per day. This includes, 
without limitation, concessionaires, wherever located, clubs, and 
employee restaurants, but excludes school, hospital and hotel res- 
taurants. 

Section 3. The term '' Food " as used herein shall mean nutritive 
material intended for human consumption, in solid and/or liquid 
form, whether simple, mixed, compounded, cooked, uncooked, or 
otherwise prepared, excluding however, preparations sold or pro- 
duced primarily for their vitamin content, or medicinal or quasi- 
medicinal preparations. 

Section 4. The term " Member of the Trade " as used herein shall 
include, but without limitation, any individual, partnership, associa- 
tion, corporation, or other form of enterprise engaged in the Trade, 
either as an employer or on his or its own behalf. 

Section 5. The term " Employee " as used herein shall include any 
and all persons engaged in the Trade, however compensated, except 
a member of the Trade. 

Section 6. The term " Em/ployer " as used herein shall include 
anyone by whom such employee is compensated or employed. 

Section 7. The term ''''Curb Employee " as used herein shall mean 
employees engaged exclusively as outside salesmen serving curb 
customers. 

Section 8. '''' Employee Restaurants'"' are those conducted in con- 
nection with another business exclusively for the convenience and/or 
financial accommodation of the employees of that business. 

Section 1). The term " Maintenan-cc Employee " as used herein 
shall mean an employee essential to the upkeep and/or preservation 
of the premises and property of a restaurant. 



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

(157) 



158 

Section 10. The terms " Watchmen " and " Guards " as used 
herein shall mean employees engaged in watching and safeguarding 
the premises and proj)erty of a restaurant. 

Sectiox 11. (a) The term *' Service Emyloyee " as used herein 
shall include waiters and waitresses engaged in table and/or room 
service, and hat and coat checkers, whoso duties consist chiefly in 
rendering direct service to customers and who regularly receive 
monetary recognition from such customers for the services rendered ; 
provided however, that if the classification of any employee or group 
of employees as service or non-service employees should operate to 
discriminate unjustly between emploj^ees of the same restaurant 
establishment or between restaurant establishments of the same class 
operating under similar conditions, the National Industrial Recov- 
ery Board on application by such affected parties, and on recom- 
mendation of the Territorial Code Authority, may, after such notice 
and hearing as it may deem necessary, make such reclassification as 
justice may require. 

(b) Employees who are engaged in serving the public from behind 
the counter shall not be classified is service employees. 

Section 12. The term '' Executive " as used herein shall mean an 
employee responsible for the management of the business or a recog- 
nized subdivision thereof. 

Section 13. The term " Part-time Employee " as used herein shall 
mean an employee who works less than the maximum work week 
prescribed herein. 

Section 14. The term " County " as used herein means the City 
and County of Honolulu as defined in Section 1717 of the Revised 
Laws of Hawaii 1925, and each of the counties of the Territory of 
Hawaii as defined in Section 1575 of the Revised Laws of Hawaii 
1925. 

Section 15. The terms " President ", and ''''Act ", as used herein 
shall mean, respectively, the President of the United States and 
Title I of the National Industrial Recovery Act. 

Section 16. Population for the purposes of this Code shall be 
determined by reference to the Fifteenth Census of the United States 
(U. S. Department of Commerce, Bureau of the Census, 1930). 

Article III — Hours 

Section 1. Basic Working Days. — No employee shall be permitted 
to work more than six (6) days in any one week, except as herein- 
after otherwise provided. 

Section 2. Basic Working Hours. — No male employee shall be 
permitted to work more than fifty-four (54) hours in any one week, 
except as provided in Section 4 of this Article. No female employee 
shall be permitted to work more than forty-eight (48) hours in any 
one week, except as provided in Section 4 of this Article. 

Section 3. Em,ploy-?)ient by Several Employers. — No employer 
shall knowingly permit any emploj^ee to work for any time which, 
when added to the time spent at work for another employer or em- 
ployers, exceeds the maximum permitted herein. 

Section 4. Exceptions to Maxiniiun Hours or Periods of Labor. 



159 

(a) Wafc/wien a/ul Guards. — Watchmen and guards shall not be 
permitted to work more tlian thirteen (18) days in any fourteen 
(14) day period and not more tlian fifty -six (56) hours per week. 

(b) Mainfenance Employees. — The maximum hours of work pre- 
:-rribed in this Article shall not apply to maintenance employees, 
provided, however, that such employees\shaIl bo paid at not less than 
one and one-third times their normal rate for all hours worked in 
excess of the maximum permitted their respective sexes under Sec- 
tion 2 of this Article. 

(c) Eo.'eeytives. — Subject to the conditions set forth in Section 5 
of this Article, executives regularly receiving not less than Twenty- 
five Dollars ($25.00) per week, exclusive of any charges for meals 
may be perinitted to work in excess of the maximum h.ours of work 
prescribed in this Article. 

(d) Chief Cooks. — Chief cooks who are employees receiving not 
less than Eighteen Dollars ($18.00) per week, \\\clusive of any 
charges for meals, may be permitted to work seven (7) days per 
week but not more than fifty-six (56) hours per week. 

(e) Eiiu'rejenc]!. — In cases of emergency requiring the specific at- 
tention of a particular executive, maintenance employee, watchman 
and/or guard, or threatening damage or destruction to the property 
of a restaurant establishment, such executive receiving the salary 
hereinabove specified, maintenance employee, Avatchman and/or 
guard may be permitted to work in excess of six (6) days per week. 

Section 5. Lnnifation IJpoit Nuwher of Persons Working Unre- 
stricted Hours. — Xotwithstanding the provisions of the foregoing 
sections of this Article, and regardless of tlie number of persons 
otherwise permitted to work unrestricted hours, the total number of 
workers in any restaurant (whether such workers are executives, 
proprietors, partners, persons not receiving monetary wages, or 
others) who may be permitted to work unrestricted hours, shall not 
exceed the following ratio : 

(a) In restaurants comjirised of twenty (20) workers or less, the 
total number of workers who may be permitted to Avork unrestricted 
hours (not including the workers specified in Section 4 (a) of this 
Article) shall not exceed one (1) worker for every (5) workers or 
fraction thereof. 

(b) In establishments comprised of moi'c than twenty (20) workers, 
the total nmnber of workers (not includijig those workers specified in 
Section 4 (a) of this Article) shall not exceed one (1) worker for 
every five (5) workers for the first twenty (20) workers, and sliall 
not exceed one (1) worker for every eight (8) Avorkers above twentv 
(20). 

Section G. Spreetd of We/rkmg Hours and Number of Shifts Per 
Daij. — Xot more than fourteen (14) consecutive hours shall elapse 
betAveen the beginning and tlie termination of the hours worked by 
any employee in any tAventy-four (24) hour period and not more than 
two (2) intervals off duty shall be permitted during the course of 
such fourteen (14) consecutive hour period of employment. Time 
out for meals Avithin the fourteen (14) hour spread but not to exceed 
a total of one (1) hour, shall not constitute an interval off duty 
between split shifts. 

119420° 160:^-:i0 ;{5 2 



160 

ArTKI.K IV — WAfiES 

Section 1. Ba.^/c ScJuduJc of Wa(/<i<. — (a) Except as licreinafter 
otherwise provided, employees shall be ])aid each week at not less, 
than the mininium rates of wa^fes hereiiibelow set forth for a fifty- 
four (iA) hour work week. 



Population of cities or places 



Nonservlce 
employees 



Service 
employees 



Over 25,000 

10,000 to 25.000. . 
Less than 10,000 



$13.50 
12. 50 
11.50 



$12.00 
11.00 
10.00 



(b) Curb EiupJoi/ccs. — The inininium wases prescribed in para- 
graph (a) of Section 1 of this Article for service employees shall 
apply to curb employees. The Territorial Code Authority may, how- 
ever, appoint a joint committee of employers of curb employees and 
employers who clo not employ curb employees to investigate the effect 
of the provisions of this sulDsection upon the entire Restaurant In- 
dustry, which committee may submit to the National Industrial Re- 
cover}^ Board recommendations based upon its investigation and 
study, for its further consideration of this provision or for the modi- 
fication thereof. The National Industrial Recovery Board may, after 
such notice and hearing as it may prescribe, approve such recommen- 
dations, and upon such approval by the National Industrial Re- 
covery Board, such recommendations shall constitute a part of and 
have the same force and effect as the provisions of this Code. 

(c) Charge for Uniforms. — Where an employee is required by his 
employer to wear a uniform, no deductions from the minimum vrages 
prescribed in this Article shall be made by such employer, excei)t 
that such uniform may, by agreement between such employee and his 
employer, be obtained and sold by the employer to such employee 
at a price of not to exceed the actual cost to the employer, subject 
to the following conditions: 

(1) tliat in the case of a female employee such price shall not 
exceed Five Dollars ($5.00) per uniform; 

(2) that in the case of a male employee such price shall not ex- 
ceed Five Dollars ($5.00) per uniform, unless such uniform is of 
such standard design that it may l)e used by such male employee in 
performing the same work for other employers in the same city or 
place, in which case such price shall not exceed Twenty Dollars 
($20.00) per uniform; 

(3) tiiat no em})loyer shall permit any of his agents or employees 
or engaizc or conspire witli any third party, to pursue any course of 
action not ])ermitted such employers by this Section; 

(4) that in those ca.'^es where uniforms are purcliased. employees 
shall have the oi:)tirm to purchase such uniforms outright, or to 
reimburse the employer at the rate of ten percent (lO^f) of the 
price per week; except that after notice to the Territorial ('ode 
Authority, i-etting forth pertinent facts, and approval by the Ter- 
ritorial Code Authority, subject to review by the National Indus- 
trial Recovery Board, other rates may be agreed upon and autlior- 
ized. If, upon termination of empioymcnt, such purchase price 



161 

shall not have been paid in full, such emploj-ee shall, in the absence 
of a contrary agreement by such employee, have the option to pay 
the unj)aid balance due forthAvith and retain the uniform, or to 
surrender such uniform to the employer, and thereby cancel the 
obligation to make any further payments therefor. In lieu of such 
purchase or in the case of uniforms requiring laundering, the em- 
ployee may at his option rent such uniform from the emj^loyor or 
compensate the employer for laundry services, at a rate of not to 
exceed the actual cost to the employer of laundering and in no 
event to exceed tvrenty-five cents (250) for each laundering. 

(d) No reductions from the minimum wages i)rescribed in this 
Article, other than those specifically permitted in this Article or 
as may be required by law, shall be made for any purposes wliat- 
soever. 

Section 2. Limitations on Wage Reducfion.s. — No employer shall 
make any reduction in the full-time weekly earnings or the hoiudy 
earnings of any employee below those existing for the four vveeks 
ending June 16, 1933. 

Section 3. Charges. — (a) Charge for Meals. — Where it has been 
mutually agreed between an employee and an employer that such 
employee shall receive meals as a part of the remuneration of such 
emploj^ee, a sum of not to exceed twenty-five cents (25^) for each 
meal furnished to such employee, but not to exceed a total of Three 
Dollars ($3.00) per week, may be deducted from the wages of such 
employee. In no case shall an employee receive less cash per weeic 
because of this charge than that employee received on June 1(5, 11)33, 
for performing the same work. 

(b) Charge for Lodging. — No employer shall make any deduc- 
tions from the minimum wages prescribed in this Article for lodg- 
ing except under th.e following terms and conditions : 

(1) Where lodging has been furnished to employees by estab- 
lished custom in the restaurant establishment or by reason of pe- 
culiar location requiring that employees be lodged. 

(2) No deductions shall exceed the sum of Two and 50/100 Dollars 
($2.50) per week. 

(3) No employee shall receive less cash per week because of this 
charge than that employee received on June 16, 1933 for performing 
the same work. 

(4) No deductions shall be made except by nuitual agreement 
between employer and employee. 

(5) No deductions shall be made unless })rior thereto, application 
has been made to the Territorial Code Authority, setting forth the 
pertinent facts specified in paragraphs 1 to 4 inclusive of this sub- 
section, and approval of the Territorial Code Authority, subject to 
review by the National Industrial Recovery Board, has been obtained. 

Section 4. Minimum Wage Esiahlis'hed. — This Article estab- 
lishes a minimum rate of pay irrespective of the basis on which an 
employee is compensated. 

Section 5. Part-time Employees. — Part-time employees shall be 
paid not less than an hourly rate proportionate to the rates pre- 
scribed in the foregoing sections of this Article in accordance with 
hours worked. 



162 

Section' G. lIo:)i<b'rapp( d WoiIi'( )s. — A perscni whose earninir ca- 
pacity is limited because of a«re. ])hysical or mental liandiea}). or other 
infirmity, may be emj)loyed on li<iht work at a wage bek)w the min- 
imum established by this Code if the emidoyer obtains from the au- 
lliority designated by the United States Department of Labor a 
certificate authorizing his empk)yment at such wages and for such 
liours as sliall be stated in the certificate. Each emph)yer shall file 
monthly Avitli the Territorial Code Authority a list of all such per- 
sons employed by him. showing the wages j)jud to, and tlie maximum 
hours of work for such emploj'ce. 

AitiicLi: y — (tkxkrai. Lahoh Pi{(i\isu»xs 

Section 1. Collect ive Jiargnrn'nKj. — (a) Em])loyees shall have the 
right to organize and bargain collectively through representatives 
of their own choosing, and shall be free from interference, restraint, 
or coercion of emi)l()yers of labor, or their agents, in tlie designation 
of such re])resentati\es or in self-organization or in other concerted 
activities for the purpose of collective bargaining or other mutual 
aid or protection. 

(b) Xo employee and no one seeking euiploj'ment shall be re- 
(piired as a condition of emi)loyment to join any company union or to 
refrain from joining, organizing, or assisting a labor organization 
of his own choosing. 

(c) Employers .shall comply with the maxinunu hours of labor, 
minimum rates of i)ay. and other conditions of employment, ap- 
])roved or ])rescribed by the Pi'csident. 

Section 2. Safcti/ and II calf It. — (a) Every employer shall ])rovide 
for the safety and liealth of enjployees during the hours and at the 
places of their em))lovment. 

(b) Standards for safety and health shall be submitted by the Ter- 
j'itorial Code Authority to the National Industrial Recovery Board 
within six (6) months after the effective date of this Code. 

Section 3. CJtild Lahor. — Xo person under eighteen (18) years of 
age .shall be employed in the Trade in hazardous occupations. No 
))erson under sixteen (16) years of age shall be employed in the 
Track' in any cai)acity. Any employer shall be deemed to have 
complied with this provision as to age if he shall have on file a cer- 
tificate or permit, duly signed by the Authority in the Territory 
empowered to issue emi)loyment or age certificates or permits show- 
ing tliat the emi)loyee is of the required age. 

Section 4. TerrltoHcd Lcnrs. — Xo ])rovision in tliis Code shall 
supersede anv Teri-itorial or Eedei-al law whicli imposes on employers 
more stringent rcciuii-ements as to age of employees, Avages, liours of 
N^ork, or as to safety, health, sanitary or geno-al working conditions, 
or insurance, or fire protection, than are imposed by this Code. 

Section 5. Posting. — All employers shall post and keep posted 
copies of this Code in conspicuous places accessible to all employees. 
Every member of the Trade shall comply with all rules and regula- 
tions relative to the posting of provisions of Codes of Fair Conipe- 
tition which may from time to time be prescribed by the National 
Indu.strial Recovery Board. 



163 

Article VI — Organization, Po avers and Duties of the Code 

Authority 

Section 1. (a) Within sixty (60) days after the effective date 
of this Code, there shall be constituted a Territorial Code Authority 
consisting of seven (7) members to be elected by members of tho 
Trade at a meeting or meetings called by the Temporary Territorial 
Code Authority, upon ten (10) days' notice sent by registered mail 
to all known members of the Trade who may vote either in person, 
by proxy or by mail. Each member of the Trade shall be entitled 
to one vote. The members of the Territorial Code Authority first 
elected shall serve until their successors are elected. During such 
sixty-day period, until such Territorial Code Authority has been so 
constituted^ the committee of the association sponsoring this Code 
shall constitute the Temporary Territorial Code Authority. The 
members of the Territorial Code Authority shall be elected in the 
following manner : 

Two (2) shall be elected by the members of the Honolulu Restau- 
rant Men's Association on the Island of Oahu; 

One (1) shall be elected by the members of the Maui Restaurant 
Men's Association on the Island of Maui; 

One (1) shall be elected by the members of the Kauai Restaurant 
Men's Association on the Island of Kauai; 

One (1) shall be elected by the members of the Hawaii Restaurant 
Men's Association on the Island of Hawaii; and 

Two (2) shall be elected by members of the Trade, not members 
of the Associations, or failing such election, such members shall bo 
appointed by the National Industrial Recovery Board from a list 
submitted by non-members of the above named Associations, or, 
if such a list is not submitted, the National Industrial Recovery Board 
shall appoint from members of the Trade who are not members of 
the Associations, two (2) members of the Territorial Code Authority. 
Where a vacancy occurs in the membership of the Territorial 
Code Authority, such vacancy shall be filled by the majority vote 
of the remaining Code Authority members, provided that such va- 
cancy is filled by a representative from the same group as was the 
vacating member. 

(b) In addition to membership as above provided, there may bo 
three (3) members, without vote, to be known as Administration 
Members, to be appointed by the National Industrial Recovery 
Board to serve for such terms as it may specify. 

Section 2. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Territorial 
Code Authority shall (1) impose no inequitable restrictions on mem- 
bership, and (2) submit to the National Industrial Recovery Board 
true copies of its articles of association, by-laws, regulations, and 
any amendments when made thereto, together with such other infor- 
mation as to membership, organization, and activities as the National 
Industrial Recovery Board may deem necessary to effectuate tho 
purposes of the Act. 

Section 3. In order that the Territorial Code Authority shall at 
all times be truly representative of the Trade and in other respects 
comply with the provisions of the Act, the National Industrial 
Recovery Board may prescribe such hearings as it may deem proper ; 



1G4: 

and thereafter if it shall find that the Territorial Code Authority 
is not truly representative or does not in other res^^ects comply with 
the provisions of the Act, may require an appropriate modification 
of the Territorial Code Authority. 

Section 4. Nothing contained in this Code shall constitute the 
members of the Territorial Code Authority partners for any purpose. 
Nor shall any member of the Territorial Code Authority be liable 
in any manner to anj'one for any act of any other member, officei- 
a<xent or employee of the Territorial Code Authority. Nor shall 
any member of the Territorial 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 nonfeasance. 

Sectiox 5. If the National Industrial Recovery Board shall at 
any time determine that any action of the Territorial Code Au- 
thority or any agency thereof may be unfair or unjust or contrary 
to the public interest, the National Industrial Recovery Board may 
require that such action be suspended to afford an opportunity for 
investigation of the merits of such action and further consideration 
by such Territorial Code Authority or agency j)ending final action 
which shall not be effective unless tlic National Industrial Recovery 
Board approves or unless it shall fail to disapprove after thirty 
(30) davs' notice to it of intention to proceed with such action 
in its original or modified form. 

Section G. (a) Subordinate to the Territorial Code Authority 
established in Section 1 of this Article, there shall be constituted 
County Code Authorities for those counties of the Territory, where 
in the opinion of the National Industrial Recovery Board the 
Territorial Code Authority will require assistance of a regional 
group in its duties of investigation, fact-finding, education, and re- 
search. Members of the County Code Authorities shall be elected 
in a manner satisfactory to the National Industrial Recovery Board, 
by the Trade at large in the county where they are to serve and 
ehall be truly representative of the Trade in that county. 

(b) In addition to membership on the County Code Authority 
as above provided, there may be one (1) member, without vote, 
to be known as the Administration member, to be appointed by the 
National Industrial Recovery Board to serve for such term as it 
ma}' specify. 

Section 7. Powers and Duties. — Subject to such rules and reg- 
ulations as may be issued by the National Industrial Recovery 
Board, the Territorial 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 ])rovisions of this Code and 
to provide for the compliance of the Trade with the provisions of 
the Act. 

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

(c) To obtain from members of the Trade such information and 
reports as are required for the administration of the Code. In addi- 
tion to information recjuired to be submitted to the Territorial Code 
Authority, members of the Trade subject lo this Code shall furnish 
fcuch statistical information as the National Industrial Recovery 



165 

Board may deem necessary for the purposes recited in Section 3 (a) 
of the Act to such Federal and Territorial agencies as it may desig- 
nate; provided that nothing in this Code shall relieve any member 
of the Trade of any existing obligations to furnish reports to any 
government agency. No individual report shall be disclosed to 
any other member of the Trade or any other party except to such 
other governmental agencies as may be directed by the National 
Industrial Recovery Board. 

(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 Territorial 
Code Authority of its duties or responsibilities under this Code and 
that such trade associations and agencies shall at all times be sub- 
ject to and comply with the provisions hereof. 

(e) To make recommendations to the National Industrial Re- 
covery Board 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 Trade. 

(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 
Territorial 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 National Industrial Recovery Board for its 
approval, subject to such notice and opportunity to be heard as it 
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 National Industrial Recovery Board, 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 
contribution to the expenses of the maintenance of the Territorial 
Code Authority, determined as hereinabove provided, and subject to 
rules and regulations pertaining thereto issued by the National 
Industrial Recovery Board. 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 Territorial 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 Territorial 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 ap- 
proval of the National Industrial Recovery Board, and no subse- 



166 

qiient budget shall contain any deficiency item for expenditures in 
excess of prior budget estimates except those which the National 
Industrial Recovery Board shall have so approved. 

(g) To recommend to the National Industrial Recovery Board 
an}' 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/industries; measures 
for industrial planning, and stabilization of emplo3^ment ; and 
including modifications of this Code which shall become effective as 
part hereof upon approval by the National Industrial Recovery 
Board after such notice and hearing as it 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 Trade 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 National Industrial 
Recovery Board as amendments to this Code and such other codes. 

(i) To provide appropriate facilities for arbitration, and subject 
to the approval of the National Industrial Recovery Board to pre- 
scribe rules of procedure and rules to effect compliance with awards 
and determinations. 

(j) It shall create as an independent agency of the Territorial 
Cocle Authority a Joint Industrial Board consisting of an equal 
number of representatives of employers and employees, and an im- 
partial chairman elected by the members of the Board, to deal with 
all matters in the Code relating to hours, wages, and general labor 
provisions. The designated employees' representatives shall be truly 
representative of the employees of the Trade and chosen by sucli 
employees. The membership of this Board shall be approved by the 
National Industrial Recovery Board. 

Article VII — Unfair Trade Practices 

Section 1. Mhrcpresentatioi^. — No member of the Trade shall use 
advertising, whether printed, radio, display, or bill-of-fare, or any 
otlier form of publicity which is inaccurate in any material particu- 
lar or misrepresents food, merchandise, service, credit terms, values, 
or policies, and no member of the Trade shall use advertising and/or 
selling methods which tend to deceive or mislead customers or pro- 
spective customers. 

Section 2. Fre& Deeds. — No member of the Trade shall offer or 
give a free deal. The term " free deal " as used in this paragraph 
means a gift of free food, money, presents, advertising space, or 
specimen meal, as an inducement to secure business; provided, how- 
over, that this section shall not be construed to prohibit free and 
general distribution of articles for advertising purposes. 

Section 3. Prizes eind Premiums. — No member of the Trade sliall 
offer any prize or premium or gift in pursuance of a plan which 
involves fraud or deception or lottery. 

Section 4. Defamation. — No member of the Trade shall defame 
a competitor by falsely imputing to him dishonorable conduct, in- 
ability to perform contracts, questionable credit standing, or by other 



167 

false representation, or by falselj'^ disparaging the grade or quality 
of his goods. 

Section 5. Breach of Contract. — No member of the Industry shall 
maliciously induce or attempt to induce, by any false or deceptive 
means whatsoever, the breach of an existing contract between a com- 
petitor and his source of supply or between a competitor and his 
customer; or interfere with or obstruct the performance of any such 
contractual relations with the purpose and effect of hampering, 
injuring or embarrassing competitors in their business. 

Section 6, Payments for Privilege of Working. — No employer 
shall accept, nor shall he laiowingly permit any of his employees 
to accept money or gifts of any kind from an employee or prospec- 
tive employee for the privilege of working or for any other advan- 
tage. 

Article VIII — Modification 

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

Section 2. Such of the provisions of this Code as are not required 
to be included herein by the Act may, with the approval of the Na- 
tional Industrial Recovery Board, 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 IX — 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, and when made, such increases should so far as possible, 
be limited to actual additional increases in the seller's costs. 

Article X — Monopolies, Etc. 

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

Article XI — Effective Date 

This Code shall become effective thirty (30) days after its approval 
b}^ the National Industrial Recovery Board. 



Approved Code No. 553. 
Registry No. 1728-31. 



o 



AMENDMENTS 



]2.'?72fl— 35 2 



Approved Code No. 24 — Amendment No. 6 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BITUMINOUS COAL INDUSTRY 

As Approved on January 25, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Bituminous Coal 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 the Code of Fair Competition for the Bituminous Coal Industrv : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it hj Executive Orders of the President, including- 
Executive Order No. 6859, and otherwise ; does find that said amend- 
ment 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 does hereby order that 
said amendment be and it is hereby approved to become elective 
immediately and remain effective only until and including April 30, 
1935, and that the previous approval of said Code is hereby amended 
to include an approval of said Code in its entirety as amended. 
National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended: 
W. P. Ellis, 

Divisio7i Administrator. 

Washington, D. C. 

January 25, 1935. 

(169) 



REPORT TO THE PRESIDENT 

The Presidemt, 

The White House. 

Sie: An application has been only made pursuant to and in full 
compliance with the provisions of the National Industrial Recoverj'^ 
Act, for an amendment to the Code of Fair Competition for the 
Bitumious Coal Industry, submitted by a Sub-Divisional Code Au- 
thority of the Industry and an amendment submitted by the National 
Recovery Administration for consideration at the public hearing, 
held in Washington, D. C, Januaiy 4, 1935. 

At this hearing, modifications of such proposed amendment were 
submitted by the National Bituminous Coal Industrial Board, an 
agenc}^ created and established under the Code for the purpose, 
among others, of considering and making recommendations to the 
President as to any amendments of the Code. Pursuant to the hear- 
ing and to information and considerations properly before us, as 
provided in the published notice of hearing, these amendments have 
been revised. Also as a result of this hearing an amendment to 
Article VI, Section 1 was approved January 8, 1935. 

The existing provisions of Article VI, Sections 2, 3 and 4 and 
Article VII, Section 2 of the Code for said Industry are entirely in- 
adequate in view of the necessity for changing and improving the 
methods and procedure in establishing fair market prices. An ex- 
treme emergency confronts the Industry occasioned by the custom 
of making forward contracts, under which the price for delivery of 
coal might jeopardize the hour and -wage provisions of the Code, re- 
sulting in serious labor disturbances to the detriment of the public. 
It is, therefore, evident that the proposed amendment of Article VI, 
Sections 2, 3 and 4 and of Article VII, Section 2 of said Code, as 
modified by the National Industrial Recovery Board, as provided in 
the notice for public hearing thereon, will assist in improving the 
existing inadequate provisions. 

FINDINGS 

The Acting Deputy Administrator in his final report to us on the 
amendment to the Code of Fair Competition for the Bituminous 
Coal Industry having found as herein set forth and on the basis of 
all proceedings in this matter : 

We find that pending such further order as the National Industrial 
Recovery Board may enter thereon; 

(a) The amendment to said Code and the Code as amended are 
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 

(170) 



171 

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 
sanctions and supervision, by eliminating unfair competitive prac- 
tices, by promoting the fullest possible utilization of the present pro- 
ductive capacity of industries, by avoiding undue restriction of pro- 
duction (except as may be temporarily required) by increasing the 
consumption of industrial and agricultural products by increasing 
purchasing power, by reducing and relieving unemployment, by im- 
proving standards of labor, and otherwise by rehabilitating industry 
and conserving natural resources. 

(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 Subsec- 
tion (b) of Section 10 thereof. 

(c) The Code empowers the National Bituminous Coal Industrial 
Board to consider and to make recommendations to the President as 
to any amendments of this Code. It also empow^ers any Sub-Divi- 
sional Code Authoritj'^ to propose amendments on behalf of the 
Industry as a whole after submission to any other Code Authority 
affected thereby (which shall include the Divisional Code Authority). 

(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. 

In view of the emergency and conditions existing, said amendment, 
as modified, is accordingly approved to become effective immediately 
and for a temporary period to and including April 30, 1935, during 
which period further consideration will be given to the problems 
involved. 

For the National Industrial Recovery Board: 

W. A. Harriman, 
Administrative O^cer. 
January 25, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE BITUMINOUS COAL INDUSTRY 

Modify Article VI by inserting to appear in said Article VI as 
a preamble thereto and immediately to precede Section 1 thereof, 
the following : 

For the purpose of establishing and maintaining fair practices so 
as to protect the public in its right to buy coal at reasonable prices; 
to proA'ide and maintain an adequate wage structure for employees; 
and to protect the producers in their rig-ht to produce coal and sell 
it in the markets, while observing the purposes of the National 
Industrial Recovery Act, it is provided as follows : 

and by modifying Sections 2, 3 and -i of said Article VI in such 
manner that the preamble to and Sections 1, 2, 3 and 4 of said Article 
VI shall read as follows : 

Article VI — Unfaik Practices 

For the purpose of establishing and maintaining fair practices 
so as to protect the public in its right to buy coal at reasonable 
prices; to provide and maintain an adequate wage structure for 
employees; and to protect the producers in their right to produce 
coal and sell it in the markets, Avhile observing tlie purposes of the 
National Industrial Recovery Act, it is provided as follows: 

Section 1. The making of a contract to sell or offer to sell coal, 
whether for inmiediate or future delivery, at a price below the fair 
market price at the date of such contract or offer (regardless of 
the dates specified for the making of deliveries), or any sale or 
delivery of coal (other than pursuant to contract made in accordance 
with the foregoing) below the fair market price thereof at the time 
of delivery, detennined as hereinafter provided, is hereby declared 
to be an unfair competitive practice and in violation of this Code. 
Such fair market price shall be determined and established as here- 
inafter provided, and it shall be proper in determining such fair 
market price to consider the purposes of the National Industrial 
Recovery Act, the minimum rates of pay herein establislied, the 
furnishing of employment for labor and the competition with other 
coals, fuels, and forms of energy or heat production. (Amendment 
Number Five, Januaiy 8, 1935.) 

Section 2 (a). The fair market prices of coal of any kind, grade 
or size, referred to in the next preceding section, subject to the power 
of review hereinafter stated, shall be — 

(1) The minimum prices for the various kinds, grades and sizes 
in the vai'ious consuming markets which may be established for 
future application by a marketing agency or b}' marketing agencies, 
of whatever form or howsoever constituted now existing or here- 

(172) 



173 

after created or organized, acting for producer^ ( f at least two- 
thirds of the commercial tonnage of any coal district or group of 
districts, such minimum prices to be effective when and as an- 
nounced as provided in paragraph (f ) of this Section. 

(2) The' minimum prices for the various kinds, grades and sizes 
in the various consuming markets, which may be established for 
future application by the respective Cade Authorities hereinafter 
set up, for their respective areas where no such marketing agency 
exists, such minimum prices to be effective when announced as pro- 
vided in paragraph (f ) of this Section. 

(b) In determining such fair market prices, marketing agencies 
and Code Authorities shall take into consideration, among other 
factors, the purposes of the National Industrial Recoverv Act, the 
minimum rates of pay herein established, the furnishing of employ- 
ment for labor, competition with other coals, fuels and forms of 
energy or heat production, the customs, requirements and needs of 
the buying and consuming public for various kinds, grades and sizes 
of coal and the necessity for giving to consumers reasonable oppor- 
tunity to buy and to producers reasonable opportunity to sell their 
coal in usual and normal markets. Furthermore, in order to deter- 
mine such fair market prices, the marketing agencies and Code Au- 
thorities shall classify all coals, applying all factors usually con- 
sidered in connection with physical structure and chemical analysis 
and their effect upon the salability and use value of such coals, and 
with due regard for the foregoing provisions, shall so price coals 
as to afford producers reasonable opportunity to sell the coal in 
competition with other coals, fuels and forms of energy or heat pro- 
duction, and to this end the marketing agencies and Code Author- 
ities shall give due regard to the prices made by competing districts, 
]»ttt it shall be their purpose, while making competitive market prices, 
not to make dumping prices in any area of consiui"i]:^tioii. 

(c) The term "marketing agency" as used in this Code shall 
include any trade association of coal prodticers complying with the 
requirements of a marketing agency and exercising the functions 
thereof as provided herein. 

(d) Where a marketing agency functioning in any district or 
group of districts acts as selling agent for producers of at least two- 
thirds of the commercial tonnage, the Code Authority in announcing 
the prices of coal of producers outside of such agency in such district 
or group of districts shall titilize and follow the practices and meth- 
ods of classification, and the classifiications, tised by suth agency and 
shall adopt the same prices for the respective classes of coal as those 
fixed by such agency. 

(e) The fair market prices established for future a]iplication un- 
der the provisions of Section 2 (a) (1) shall be reported to said 
Code Authorities by any such marketing agencies in such manner as 
ma}- be required by such Authorities. 

(f) The fair market price or prices of bituminous coal established 
as herein provided shall become effective, subject to appeal, sus2)en- 
?ion and modification as hereinafter provided, when the same shall bo 
approved by the Presidential Member of the Code Authority (acting 
under the direction of the Administrator), and when ]:)ublished as 
provided herein. In his approval the Presidential Member may per- 



174 

mit a reduction or increase in said ]Drice or prices by action of said 
marketing agencies or Code Authorities within the limits which he 
ma}' prescribe. Said prices shall be published b}' the Code Authority 
when so established and approved by the Presidential Member and 
from time to time thereafter as may be determined bj^ the Code Au- 
thority or required by the Administrator, and in any event when any 
change is made therein. Simultaneously with such publication said 
fair market price or prices shall be transmitted by the Code Author- 
ity making or giving elfect to and publishing any change in price, to 
the National Recovery Administrator for his review and subsequent 
action. 

(g) Each Code Authority shall, at all times, provide and keep 
open an office during business hours to which any coal producer in 
its district or districts and any representative of the Administrator 
may apply for information with respect to classifications and prices. 

Section 3. In order to prevent injustices among or between pro- 
ducers, any producer sliall be granted a hearing upon written com- 
plaint, and the marketing agency or Code Authority which estab- 
lishes fair market prices for the coals of such producer shall hold 
said hearing within five days (unless extension of time is consented 
to by such producer) after the receipt of said complaint, directly 
or through such agency as it may establish. In such complaint, the 
producer shall set out the grounds of his complaint, whether he is 
objecting to the prices fixed on his coal, and wdiether he desires an 
increase or decrease in his prices. He shall further set out whether 
he is objecting to prices of other producers in the same district or 
on account of prices in competing districts. The marketing agency 
or Code Authority, shall, to the extent reflected in the evidence, take 
into consideration, in addition to the factors set out in this article, 
the market demand for the class of coal of the producer, the relative 
operating time at the mines of the producer, as compared with 
that of the mines of other producers in the same and competing 
districts, their past production history, as well as the quality of the 
coal and the comparative delivered value thereof to the consumer, 
and such other pertinent facts as may be presented, and shall make 
its decision within live days after the hearing, unless extension of 
time is consented to by such producer. A record shall be made of 
all the facts and evidence presented to the marketing agencv or 
Code Authority, as the case may be, at such hearing, and of the 
decision rendered thereon. Such producer shall have the right of 
appeal to an impartial Board of Arbitration which shall be set up 
by such agency or C(xle Authority, as hereinafter provided; and the 
decision of such Board shall be binding upon the producer and shall 
constitute the decision of such agency or Code Authority. 

Section 4. In order to establish fair competitive price relation- 
ships and practices between marketing agencies and/or Code Au- 
thorities representing different Divisions or Subdivisions, such agen- 
cies and Code Authorities are hereby authorized and directed to 
meet and confer with each other and endeavor to agree upon a basis 
of fair competitive prices and practices relating thereto as between 
such Divisions and/or Subdivisions. They sliall take into considera- 
tion the same factors as are considered by Code Authorities as be- 
tween the producers within the Divisions or Subdivisions as here- 



175 

inbefore set out. Any such agreements made between marketing 
agencies and/or Code Authorities representing competing Divisions 
and/or Subdivisions shall be submitted to the Administrator for 
approval or disapproval and shall become effective within ten days 
after receipt thereof by him unless disapproved as being against 
the interest of the public. Such agencies and/or Code Authorities 
shall endeavor to agree between themselves, subject to the approval 
of the Administrator, on rules of procedure, notices of meetings, 
and other necessary order of business for such meetings looking to 
such agreements, notices of all of which shall be furnished to the 
Administrator or his representative, who shall have the opportunity 
to be present at such meetings. In default of an agreement as to 
such rules and other procedural matter approved by him, the 
Administrator may prescribe the same. 

If any such agency or Code Authority shall be of the opinion that 
any producer or producers represented by it is adversely affected by 
any failure to reach such agreement, or that any prices or practices 
relating thereto, heret(jfore or hereafter established in a different 
Division or Subdivision, are unfair competitive prices or practices 
relating thereto and no such agreement in respect thereof has been 
reached, the dissatisfied agency or Code Authority shall have the 
right of appeal to the National Coal Board of Arbitration, as herein- 
after provided. 

Article VII — Admixistratiox 

Change the designation of Section 2 to Sub-section (a) of Section 
2 and add two additional sub-sections to said Section to be designated 
(b) and (c), as follows: 

(b) Every marketing agency and Code Authority establishing 
prices as herein provided shall immediately set up and maintain a 
permanent impartial Board of Arbitration for the marketing agency. 
Division or Subdivision for which it acts, to which any producer 
represented by such agency or Code Authority may appeal from any 
decision thereof as to his classification or price or the practice com- 
plained of; provided, however, that any marketing agenc}^ or Code 
Authority may elect to join with any other marketing agency or Code 
Authority agreeing thereto, with the approval of the Administrator, 
to set up such Board for their joint use for the purposes of this 
Article. Such Board shall consist of not more than five members, 
who shall not be connected directly or indirectly with the coal indus- 
try during the time they serve as members of such Board. Such 
Board shall prescribe rules of procedure and keep a record of its 
proceedings. Any producer filing an appeal shall do so in writing, 
accompanied by evidence of service of a copy thereof upon such Code 
Authority or marketing agency. Such appeal shall be heard within 
five days of the date of filing unless the producer taking the appeal 
shall consent to extension of such time. Such Board in reaching its 
decision on any such controversy shall be guided, as the basis of such 
decision, by the principles upon w'hich fair competitive market prices 
and practices relating thereto are to be established as hereinbefore 
provided in Article VI; and such Board shall decide the matters at 
issue within ten davs after the hearing and the decision of such Board 



176 

shall be final and bindino- on the producer and shall constitute the 
decision of such Code Authority or marketing agency. If the de- 
cision of the Board favors the complainant, the marketing agency or 
Code Authority shall revise the price or practice conij^lained of in 
accordance Avith such decision, or in the case of failure of the said 
Board to act ^vithin such ten days or such extended period as may be 
con^ented to by the complainant, such agency or Code Authority shall 
likewise revise such price or practice complained of as if the decision 
had been in favor of the complainant. 

(c) In order to settle disputes and controversies between or among 
marketing agencies or Code Authorities representing different Divi- 
sions or Subdivisions with respect to fair competitive prices and 
practices relating thereto, there shall be created an impartial National 
Coal Board of Arbitration of five members, who shall not be con- 
nected directly or indirectly Avith the coal industry during the time 
they serve as members of such Board. The nine members of the 
National Bituminous Coal Industrial Board designated by the Divi- 
sional Code Authorities shall constitute electors by majority vote to 
elect, subject to the approval of the Administrator, and fix the sala- 
ries of the members of said National Coal Board of Arbitration and 
fill any vacancies thereon. The members of the National Coal Board 
of Arbitration shall be paid salaries at tlie rate of not to exceed 
$10,000, each per year and shall serve for a term of two years, subject 
to removal by affirmative vote of at least six of said electors. Their 
salaries and traveling exi)enses and all necessary office expenses shall 
be paid b}' Divisional Code Authorities, contributing on a tonnage 
basis. Complaints to such Board shall be in writing, setting forth 
the reasons therefor, and may be made only by a marketing agency 
or by a Code Authority. The Board shall make all necessary rules 
and regulations for its operation and })rocedure and shall keep a 
record of its notions and proceedings. Said Board i^liall liear all 
complaints within ten days (or such additional time as may be con- 
sented to by complainant) after receipt of formal complaint in writ- 
ing, accompanied b}' evidence satisfactory to the Board that copy 
thereof has been served upon the respondent marketing agency or 
Code Authority. Copies of the complaints shall also be furnished 
to other interested marketing agencies and Code Authorities and t( 
the Administrator in accordance with rules of the Board. The 
Board shall decide all matters submitted to it within ten days after 
the hearing unless the time is extended Avith consent of the com- 
IDlainant and its action shall, subject to changes made under the pro- 
visions of the Code, be binding upon the parties for a period of not 
less than ninety days unless the Board in its discretion shall consent 
to revieAv its action, and thereafter until ncAv matter is submitted by 
the complainant sufficient in the opinion of the Board to cause it to 
change its decision. In settling and determining the dis]jutes and 
controversies between Divisions and Subdivisions above referred to. 
said National Coal Board of Arbitration shall be governed by the 
came principles and standards, facts and factors as herein prescribed 
for the marketing agencies. Code Authorities, and Boards of Arbitra- 
tion in fixing prices and determining disputes respecting prices and 
practices relating thereto. The decision of the Board shall be trans 



177 

mitted to the Administrator for approval or disapproval and shall 
become effective within ten da3^s after its receipt by him unless dis- 
approved as being against the interest of the public. Pending hear- 
ing on and decision of such complaint the prices or practices com- 
plained of may by order of the Board and on such conditions as it 
may prescribe be suspended or modified. 

Appropriate publication shall be made by the Code Authority 
giving effect to any change in price required by such decision. 

Approved Code No. 24 — Amendment No. 6. 
Registry No. 702-45. 



Approved Code No. 170 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

GRINDING WHEEL INDUSTRY 

As Approved on January 25, 1935 



OKDEE 



Approving Amendment 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 an amendment 
to the Code of Fair Competition for the Grinding Wheel Industry, 
and as contained in a Published Notice of Opportunity to be Heard, 
Administrative Order No. 170-12, dated October 6, 1934, and any 
objections filed having been duly considered, and the annexed report 
on said amendment containing findings with respect thereto, having 
been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including Exec- 
utive Order No. 6859, and otherwise, does hereby incorporate by ref- 
erence said annexed report and does find that said amendment and 
the Code as constituted after being amended comply in all respects 
with the pertinent provisions and will promote the policies and pur- 
poses of said Title of said Act, and does 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. 

National iNousTRiAii Recovery Board, 
W. A. Harriman, Administrative Officer. 

Approval recommended: 
W. P. Ellis, 

Division Administrator. 

Washington, D. C, 

January 25, 1935. 

(179) 



REPOKT TO THE PRESIDENT 

The President. 

The White House. 

Sir: An applicatitm having been duly made pursuant to and in 
full compliance with the provisions of the National Industrial Re- 
covery Act. for an amendment to the Code of Fair Competition for 
the Grinding Wheel Industry, submitted in part by the Code Au- 
thority for the Grinding Wheel Industry and in part by the Na- 
tional Recovery Administration. 

The purpose and effect of the Code Authority's proposal is to pro- 
hibit the placing of coiis^ignment stocks with machine manufacturers 
and consumers. The amendments proposed by the National Re- 
covery Administration are designed to clarify specific provisions 
of the Code. 

FINDINGS 

The Deputy Administrator in his final report to us on said amend- 
ment to said Code having found as herein set forth and on the 
basis of all the proceedings in this matter : 

We find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among Trade Groups by inducing and main- 
taining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of 
the present productive capacity of the industries, by avoiding undue 
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 
pertinent provisions of said Title of said Act, including without 
limitation Subsection (a) of Section 3, Subsection (a) of Section 
7, and Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendment on behalf of the industry as a whole. 

(d) The amendment and the Code as amended are not designed to 
and will not permit monopolies or monopolistic practices. 

(180) 



181 

(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, we have approved this amendment. 
For the National Industrial Recovery Board: 

W. A. Harriman, 
Administrative Officer. 
Jantjaet 25, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
GRINDING WHEEL INDUSTRY 

Amend Article III by adding- the following : 

Section 8. No employer shall knowingly permit any employee to 
work for an}- time which, when added to the time spent at work for 
another emplo3'er or emploj'ers, exceeds the maximum permitted 
herein. 

Amend Article IV by deleting Section 3 and substituting therefor 
the following : 

Sectiox 3. A person Avhose earning capacity is limited because 
of age, or physical or mental handicap, or other infirmity, may be 
employed on light work at a wage below the minimum established 
by this Code if the employer obtains from the State authority desig- 
nated by the United States Department of Labor a certificate au- 
thorizing his employment at such wages and for such hours as shall 
be stated in the certificate. Such authority shall be guided by the 
instructions of the L^nited 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, show- 
ing the wages paid to. and the maximum hours of work for such 
employee. 

Amend Article VI by deleting Section 5 and substituting therefor 
the following : 

Sectiox 5. Eyery employer shall make reasonable provisions for 
the safety and health of his employees at the place and during the 
hours of their employment. 

Standards for safety and health shall be submitted by the Code 
Authority to the National Industrial Recovery Board for approval 
as soon as practicable, but Tiot later than sixteen (16) months after 
the effective date of the Code. 

Amend Article VI by adding the following: 

Section 7. No employer shall dismiss or demote any employee 
for making a complaint or giving evidence with respect to an al- 
leged violation of the provisions of any Code of Fair Competition. 

Amend Article VIII by deleting Paragraph (6) and substituting 
the following therefor : 

(6) Initiating negotiations with employees of competitors to in- 
duce them to violate their contracts. 

Amend Article VIII by adding the following : 

(17) Placing a consignment stock or stocks of any of the prod- 
ucts of the Industry with a machine manufacturer for sale or with 
a consumer. 

Approved Code No. 170 — Amendment No. 2. 
Kc'jiistry No. l(X)l-03. 

(182) 



Approved Code No. 244C — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

ELEVATOR MANUFACTURING INDUSTRY 

As Approved on January 26, 1935 



ORDER 



Approving Amendment of Supplementary Code of Fair Competi- 
tion FOR THE Elevator Manufacturing Industry 

A division of the construction industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 10, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Elevator Manufactur- 
ing Industry, a Division of the Construction 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, the National Industrial Recovery Board, pursuant to 
authority vested in it by Executive Orders of the President, includ- 
ing Executive Order No. 6859, dated September 27, 1934, and other- 
wise; does hereby incorporate by reference said annexed report and 
does find that said amendment and the Code as constituted after 
being amended comply in all respects with the pertinent provisions 
and will promote the policies and purposes of said title of said act; 
and does hereby order that said amendment be and it is hereby ap- 
proved, and that the previous approval of said Code is hereby 
amended to include an approval of said Code in its entirety as 
amended. 

National Industrial Recovery Board. 
By W. A. Harriman, Adininistrative Officer. 

Approval recommended : 
Walter G. Hooke, 

Acting Division Administrator. 

Washington, D. C, 

January 26, 1935. 

123726—35 3 (183) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on an amondmont to the Supplementary 
Code of Fair Competition for the Elevator Manufacturing Industry, 
a Division of the Construction Inckistry, which was approved by 
you on March 21, 1934. 

In amending Article III, by adding a new section to be Imown 
as Section 4, the Code Authority will be enabled to enforce assess- 
ments. It has been found necessary to ask for this mandatory 
assessment provision as many members of the Industry have not 
been contributing to the support of the Code Authority. This amend- 
ment will correct a condition which has resulted in unfairness to 
those who have been contributing, by enabling the Code Authority 
to collect funds for Code administration from all of the members 
of this Industry. 

FINDINGS 

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

The Board finds 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 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 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 Divisional 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. 

(184) 



185 

(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, the National Industrial Recovery 
Board has approved said amendment to the Elevator Manufacturing 
Industry's Chapter of the Code of Fair Competition of the Con- 
struction Industry. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Ad/mnistrative O fleer. 
January 26, 1935. 



A^IEXDMEXT TO SUPPLEMEXTAEY CODE OF FAIR COM- 
PETITION FOR THE ELEVATOR MANUFACTURING 
INDUSTRY 

A DIVISION OF THE COXSITIUCTIOX INDUSTRY 

Amend Article III by adding a new section to be known as Section 
4, and to read as follows : 

Sfx'tiox 4. 1. It being found necessary in order to support the 
administration of this Code and to maintain the standards of fair 
competition established hereunder and to effectuate the policy of the 
Act, the Divisional Code Authority is authorized : 

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

(b) To submit to the National Industrial Recovery Board for its 
approval, subject to such notice and opportunity to be heard as it 
may deem necessaiy (1) an itemized budget of its estimated expenses 
for the foregoing purposes and (2) an equitable basis upon which 
the funds necessary to support such budget shall be contributed by 
members of this Division ; 

(c) After such budget and basis of contribution have been ap- 
proved by the National Industrial Recovery Board, to determine 
and obtain equitable contribution as above set forth by all members 
of this Division, and to that end, if necessary, to institute legal 
proceedings therefor in its own name. 

2. Each member of this Division shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code Au- 
thority, determined as hereinabove provided, and subject to rules 
and i-egulations pertaining thereto issued by the National Industrial 
Recovery Board. Only members of this Division complying with the 
Code and contributing to the expenses of its administration as here- 
inabove provided, unless duly exempted from making such contribu- 
tions, shall be entitled to ]:)articipate 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 
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 National Industrial Recovery Board; and no subsequent budget 
shall contain any deficiency item for expenditures in excess of prior 
budget estimates except those which the National Industrial Recov- 
ery Board shall have so approved, 

Ar)pr(>vod Code No. 244C — Amendment No. 1. 
Registry No. 1311-01. 

(180) 



Approved Code No. 186 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

END GRAIN STRIP WOOD BLOCK INDUSTRY 

As Approved on January 26, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the End 
Grain Strip Wood 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 an amend- 
ment to a Code of Fair Competition for the End Grain Strip Wood 
Block Industry, and due consideration having been given thereon and 
the annexed report on said amendment, containing findings with 
respect thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate 
by reference said annexed report and does find that said amendment 
and the Code as constituted after being amended comply in all 
respects with the pertinent provisions and will promote the policies 
and purposes of said Title of said Act, and does hereby order that 
said amendment be and it is hereby approved, and that the previous 
approval of said Code is hereby amended to include an approval of 
said Code in its entirety as amended, such approval and such amend- 
ment to take effect ten (10) days from the date hereof, unless good 
cause to the contrary is shown to the said Board before that time 
and the Board issues a subsequent Order to that effect. 

National Industrial Recovery Board, 
ByW. A. Harriman, Administrative Officer. 

Approval recommended : 

W.P.Ellis, 

Division Administrator. 

Washington, D. C, 

January 26^ 1935. 

(187) 



REPOET 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 End Grain Strip AVood Block Industry. A Notice 
of Opportunity to be Heard on the proposed amendment was pub- 
lished on October 12, 1934. 

The End Grain Strip Wood Block Industry through the Code 
Authority lias offered an amendment to Article VI, Section 2, of its 
Code of Fair Competition. 

The jjroposed amendment in its final form is summarized here- 
with : 

The amendment increases the number of members of the Code 
Authority to consist of one designated repregentative of each mem- 
ber of the Industry complying with the provisions of the Code. 

FINDINGS 

The Deputy Administrator in his final report to us on said amend- 
ment to said Code having found as herein set forth and on the basis 
of all the proceedings in this matter : 

We find that : 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and main- 
taining united action of labor and management under adequate gov- 
ernmental sanction and supervision by eliminating unfair competi- 
tive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue re- 
striction of production (except as may be temporarily required), by 
increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 13, 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. 

(188) 



189 

(d) The amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
oj^erate to discriminate against them. 

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

For these reasons, therefore, we have approved this amendment. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 

January 26, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR" 
THE END GRAIN STRIP WOOD BLOCK INDUSTRY 

Delete Sections 2 and 3 of Article VI, renumbering Sections 4 to 
10 inclusive to read Sections 3 to 9 respectively, and add new Section 
2 as follows : 

The Code Authority shall consist of one designated representative 
of each member of the Industry complying with the provisions of 
the Code. 

Approved Code No, 186 — Amendment No. 2. 
Registry No. 320-1-01. 

(190) 



Approved Code Mo. 9. — Amendment No. 29 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 

As Approved on January 29, 1935 



OEDEK 



Approving Amendment of Code of Fair Competition for the 
Lumber and Timber Products Industry 

An application having been duly made pursuant to and in full 
compliance with the 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 Lumber and Tim- 
ber Products Industries, an opportunity to be heard having been 
given all interested parties, 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, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate, 
by reference, said annexed report and does find that said amendment 
and the 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 does hereby order that said 
amendment be and it is hereby approved, and that the previous ap- 
proval of said Code is hereby amended to include an approval of said 
Code in its entirety as amended. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
W. P. Ellis, 

Division Administrator. 

Washington, D. C, 

January 29^ 1935. 

(191) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sni: On August 19, 1933, you approved a Code of Fair Competi- 
tion for the Lumber and Timber Products Industries. 

This is a report on Lumber Code Authority's Amendment No. 84, 
which has been published with a Notice of Opportunity to be Heard 
and sent to all interested parties. 

The Amendment contemplates the addition of the State of Nevada 
to the jurisdiction of the Western Pine Division. At the time of the 
formation of the Code the State of Nevada, which produces very 
little lumber and has only two known operations, was omitted from 
the jurisdiction of any of the Divisions of the Code. Nevada is 
located within the geographical scope of the Western Pine Division, 
and this Amendment will place the Nevada operations under the 
Administrative Agency of the Code Authority for the Western Pine 
Division. 

The Deputy Administrator in his final report to us on said Amend- 
ment to said Code having found as herein set forth and on the basis 
of all the proceedings in this matter: 

We find: 

(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 including 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 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. 

(d) The amendment and the Code as amended are not designed to 
and will not permit monopolies or monopolistic practices. 

(192) 



193 

(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, we have approved this Amendment to 
thi>- Code. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Ojfi.cer. 
January 29, 1935. 



AMENDI^IEXT TO CODE OF FAIR COMPETITION FOR 
THE LUMBER AND TIMBER PRODUCTS INDUSTRIES 

In Schedule A, Section 19. Western Pine Division (Article II 
(c) ) add the State of Nevada to the jurisdiction of the said Division. 

Approved Code No. 9 — Amendment No. 29. 
Registry No. 313-1-06. 

(IM) 



Approved Code No. 449 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE MONUMENTAL GRANITE INDUSTRY 

As Approved on January 29, 1935 



ORDER 



Approving Amendment or Code of Fair Competition for the 
Wholesale Monumental Granite Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for the approval of an amend- 
ment to a Code of Fair Competition for the Wholesale Monumental 
Granite Industry, and the annexed report on said amendment, con- 
taininof findings with respect thereto, having been made and directed 
to the President * 

NOW. THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate, 
by reference, said annexed report and does find that said amend- 
ment 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 does hereby order that 
said amendment be and it is hereby approved, and that the previous 
approval of said Code is hereby amended to include an approval of 
said Code in its entirety as amended, such approval and such amend- 
ment to take effect twenty (20) days from the date hereof, unless 
good cause to the contrary is shown to the National Industrial Re- 
covery Board before that time and the said Board issues a subse- 
quent Order to that effect. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
W. P. Ellis, 

Division Administrator. 

Washington, D. C, 

January 29, 1935. 

(195) 



REPOKT 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 
Wholesale Monumental Granite Industry. 

This is a routine amendment in which there is only the remotest 
])ossibility of any objections being raised. The order approving 
this amendment, however, includes a provision that the order shall 
not become effective until twenty (20) days from the date of signing, 
unless good cause to the contrary shall be shown to the National 
Industrial Recovery Board and the Board shall issue a subsequent 
order to that effect. 

FINDINGS 

The Deputy Administrator in his final report to us on said amend- 
ment to said Code having found as herein set forth and on the basis 
of all the proceedings in this matter : 

We 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 
ihe general welfare by promoting the organization of industry for 
the purpose of cooperative action among trade groups, by including 
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 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 
utiemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provision of said Title of said Act, including without limitation 
sub-Section (a) of Section 3, sub-Section (a) of Section 7 and sub- 
Section (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendment on behalf of the industry as a whole. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(19^5) 



197 

(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, we have approved this amendment. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer, 

January 29, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
WHOLESALE MONUMENTAL GRANITE INDUSTRY 

Delete the last two paragraphs of Section 5, Article VI, dealing 
with Divisions No. 10 and 11, and substitute in lieu thereof the 
following : 

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

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

Approved Code No. 449 — Amendment No. 2. 
Kegistry No. 1023-02. 

(198) 



Approved Code No. 309 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SOLID BRAIDED CORD INDUSTRY 

As Approved on January 30, 1935 



OKDER 



Approving Amendment of 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 Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Solid Braided Cord 
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, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6859. and otherwise, does hereby incorporate 
by reference said annexed report and does find that said amendment 
and the Code as constituted after being amended complies in all 
respects with the pertinent provisions and will promote the policy 
and purposes of said Title of said Act, and does hereby order that 
said amendment be and it is hereby approved, and that the previous 
approval of said Code is hereby amended to include an approval of 
said Code in its entirety as amended, such approval and such amend- 
ment to take effect ten (10) days from the date hereof, unless good 
cause to the contrary is shown to the National Industrial Recovery 
Board before that time and the National Industrial Recovery Board 
issues a subsequent Order to that effect. 

National Industrial RECo^^RY Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
Prentiss L, Coonley, 

Division A dmin is t rat or. 

Washington, D. C, 

January] 30. 1935. 

123726—35 4 (180) 



REPOKT 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 Solid Braided Cord Industry. Notice of Opportunity 
to be Heard on this amendment was published on January 4, 1935 ; no 
objections were received within the given twenty (20) day period 
ending January 24, 1935. The amendment, which is attached, was 
presented by duly authorized and qualified representatives of the 
Industry, complying wdth statutory requirements, and being the duly 
constituted Code Authority under the provisions of the said Code for 
the said Industry. 

This amendment provides for properly labelling all cord in ac- 
cordance with such regulations as are issued by the Code Authority 
for the Solid Braided Cord Industry and approved by the National 
Industrial Recovery Board. 

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

The National Industrial Recovery Board finds 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 
increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion 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 tlie Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(200) 



201 

(e) The amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons this amendment has been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 

January 30, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE SOLID BRAIDED CORD INDUSTRY 

Section 2 of Article VII of the Code is hereby deleted, and the 
following is thereby substituted : 

All cord shall be properly labeled in accordance with such regu- 
lations as are issued by the Code Authority and approved by the 
National Industrial Recovery Board. 

Approved Code No. 309 — Amendment No. 2. 
Registry No. 21^-01. 

(202) 



Approved Code No, 17 — Amendment No. 5 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

AUTOMOBILE MANUFACTURING INDUSTRY 

As Approved on January 31, 1935 

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 Auto- 
mobile Manufacturing Industry, pursuant to and in full compliance 
with the provisions of Title I of the National Industrial Recovery 
Act, approved June 16, 1933, and the provisions of the Code of Fair 
Competition for the Automobile Manufacturing Industry duly ap- 
proved on August 26, 1933, for my approval of an amendment to said 
Code of Fair Competition for the Automobile Manufacturing In- 
dustry, and it having been found that the said proposed amendment 
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 Na- 
tional Industrial Recovery Board having made certain recommenda- 
tions to me : 

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 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 : 

1. In Article I, the seventh paragraph, which has heretofore read 
as follows : 

" The term ' expiration date ' as used herein means February 1, 
1935, or the earliest date prior thereto on which the President shall 
by proclamation or the Congress shall by joint resolution declare 
that the emergency recognized by section 1 of the National Indus- 
trial Recovery Act has ended." 
shall be modified to read as follows: 

(203) 



204 

'" The term ' expiration date ' as used herein means June 16, 1935, 
or the earliest date prior thereto on which the President shall by 
proclamation or the Congress shall by joint resolution declare that 
the emergency recognized by section 1 of the National Industrial 
Eecovery Act has ended." 

2. Work by any employe in excess of forty-eight hours in any week 
shall be paid for at the rate of time and one-half for such overtime. 
Any provision of said Code inconsistent herewith is hereby modified 
to conform to this requirement. This requirement shall not be con- 
strued to authorize or permit work in excess of forty-eight hours 
when such work is prohibited under any of the provisions of the code. 

3. The members of the industry are requested and authorized to 
enter into agreements with one another with respect to Fall announce- 
ments of new models of passenger automobiles and the holding of 
automobile shows in the Fall of the year, as a means of facilitating 
regularization of employment in the industry. 

4. The members of the industry will comply with the provisions 
and requirements for the settlement of labor controversies which 
were established by the government and have been in operation since 
March 1934, and which are hereby confirmed and continued. 

" FRANKLIN D. ROOSEVELT. 
The White House, 

January 31, 1935. 

Approved Code No. 17 — Amendment No. 5. 
Registry No. 1403—1—04. 



Approved Code No. 1 — Amendment No. 13 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOE THE 

COTTON TEXTILE INDUSTRY 

As Approved on January 31, 1935 



ORDER 



Approving Amendment or Code of Fair Competition for the 
Cotton Textile Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Cotton Textile Industry 
and 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order 6859, dated September 27, 1934, and otherwise, 
does hereby incorporate by reference, said annexed report and does 
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 
does 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. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
Prentiss L. Coonley, 

Division Administrator. 

Washington, D. C, 

January 31. 1935. 

(205) 



REPORT TO THE PRESIDENT 

The President. 

The White Eause. 

Sir: On October 16, 1934, you approved an Executive Order cre- 
ating the Cotton Textile Work Assignments Board and establishing 
rules and regulations for the handling of work assignments in the 
Industry until February 1, 1935. It was originally contemplated 
that by that date, the Work Assignments Board would have sub- 
mitted a permanent plan for the regulation of work assignments 
which would have been incorporated in the Code as an amendment. 

Several factors prevented this. On December 27, 1934, you ap- 
proved Executive Order 6930 giving the Work Assignments Board 
until " a reasonable time after January 1, 1935 " to submit its recom- 
mendations. 

The attached Amendment extends the so-called " freezing period ", 
during which time work assignments are not to be increased, until 
thirty days after the Work Assignments Board has submitted its 
recommendations for a permanent plan. 

FINDINGS 

The Deputy Administrator in his final report to the National 
Industrial Recovery Board on said amendment to said Code having 
found as herein set forth and on the basis of all the proce^edings in 
this matter : 

It finds that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and maintain- 
ing united action of labor and management under adequate govern- 
mental sanction and supervision, by eliminating unfair competitive 
practices, by promoting the fullest possible utilization of the present 
productive capacity of 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 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. 

(206) 



207 

(c) The Code emjjowers 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 this amendment has been approved. 
For the National Industrial Recovery Board: 

W. A. Harriman, 

Adi?unist?'ative Officer. 
January 31, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOE 
THE COTTON TEXTILE INDUSTRY 

Amend Section XVII, Subsection (2) by deleting the words 
"February 1, 1935" and substituting therefor the following: 

" one month after the report to the President as to a permanent 
plan for regulation of work assigmnents in the industry as pro- 
vided in sufoction (5) hereof," 

Amend Section XVII, Subsection (3) by deleting the words 
"February 1, 1935" and substituting therefor the following: 

'• one month after the report to the President as to a permanent 
plan for regulation of work assignments in the industry as pro- 
vided in subsection (5) hereof," 

Subsections (2) and (3) as amended are as follows: 

(2) In order to provide opportunity to develop a sound method 
and adequate organization for the regulation of work assignments, 
no employer prior to one month after the report to the President as 
to a permanent plan for regulation of work assignments in the in- 
dustry as provided in subsection (5) hereof, shall make any change 
in work assignment of any class of employees which shall increase 
the effort required over that prevailing on September 21, 1934. 

During this period the number of looms, frames or other machines 
required to be tended by any class of employees shall not be increased 
where the character of the raw material, yarn, construction of cloth, 
preparatory processes, type of equipment used, or character of finish 
or put-up, is not changed. Where such changes do occur the number 
of machines tended by such employees may be increased or decreased 
in such manner as will not increase the amount of effort required of 
the worker. 

Where, during the period above referred to, a mill resumes the 
manufacture of any specific product which it has made within six 
months prior to September 21, 1934, and where the conditions oi 
manufacture enumerated in the preceding paragraph are not 
changed, then the work load formerly used on such product shall 
be the guide in determining the proper work assignment. 

Where, on September 21, 1934, a new style of yarn or cloth or 
any other new type of product was in course of introduction or is 
thereafter during the period above referred to introduced into a mill 
or finishing plant, a tentative work load may be established during 
the period of determining a proper work load in accordance with 
the foregoing principles. 

(3) Prior to one month after the report to the President as to 
a permanent plan for regulation of work assignments in the industry 
as provided in subsection (5) hereof, on petition of any employee 

(208) 



209 

or employer affected, or his representative, or on its own motion, 
the Cotton Textile Work Assignment Board may investigate any 
work assignment which has been increased since July 1, 1933, at 
any mill and the mill shall show the reasons for such increase. If, 
after hearing, the Board finds such assignment requires excessive 
effort it may require its reduction accordingly. 

Approved Code No. 1 — Amendment No. 13. 
Registry No. 299-25. 



Approved Code No. 39 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FARM EQUIPMENT INDUSTRY 

As Approved on January 31, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the Farm 
Equipment 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 Farm Equipment In- 
dustry, and an opportunity to be heard having been duly afforded to 
all interested parties and the annexed report on said amendment, 
containing findings with respect thereto, having been made and 
directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industiral Recovery Board Pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate, 
by reference, said annexed report and does find that said amend- 
ment 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 does hereby order 
that said amendment be and it is hereby approved and that, effective 
immediately, the said Code of Fair Competition for the Farm 
Equipment Industry be and it is hereby amended as follows : 

In Article XI, that part of the first paragraph, which has here- 
tofore read as follows: 

" This Code and any amendments therof shall remain in effect 
until February 1, 1935, unless terminated by action or approval 
of the President." 
shall be amended to read as follows: 

" This Code and any amendments thereof shall remain in effect 
until May 1, 1935, unless terminated by action or approval of the 
President." 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Oificer. 

Approval recommended: 
Barton W. Murray, 

Division Administrator. 

Washington, D. C, 

January SI, 1935. 

(211) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : Under the Code of Fair Competition for the Farm Equipment 
Industry as approved October 3, 1933, the Code Authority for said 
Industry has submitted an amendment to said Code, which if ap- 
proved, would extend the expiration date from February 1, 1935, to 
June 16, 1935. The Code in its present form does not conform to 
Administration policy in a number of respects and for this reason, 
the expiration date has been extended to May 1, 1935, instead of June 
16, 1935, as requested by the Industry. Within the three months' 
period of extension a Public Hearing will be held to consider addi- 
tional amendments. The amendment extending the expiration date 
to May 1, 1935, is embodied in the Order. 

An Opportunity to be Heard was duly noticed and no objections 
were received from the Industry or from interested parties associated 
with the Industry. 

Findings 

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

It is found that : 

(a) The Amendment to said Code and the Code as amended is 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act, including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare 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 
increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsec- 
tion (b) of Section 10 thereof. 

(c) The Farm Equipment Institute was and is an Industrial As- 
sociation truly representative of the aforesaid Industry and that said 
Farm Equipment Institute imposed and imposes no inequitable 

(212) 



213 

restrictions on admission to membership therein and has applied for 
this amendment through the Code Authority of the aforesaid 
Industry. 

(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 enteri)rises and will not operate 
to discriminate against them. 

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

For these reasons, therefore, this amendment has been aj^proved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 

Acbninistrative Officer. 
January 31, 1935. 

Approved Code No. 39 — Amendment No. 4. 
Registry No. 1303-1-04. 



Approved Code No. 110 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

HARDWOOD DISTILLATION INDUSTRY 

As Approved on January 31, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Hardwood Distillation 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 Hardwood Distillation 
Industry, and Notice of Opportunity to be Heard having been duly 
published thereon and the annexed report on said amendment, con- 
taining findings with respect thereto, having been made and directed 
to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive orders of the President, including Ex- 
ecutive Order No. 6859, dated September 27, 1934, and otherwise; 
does hereby incorporate, by reference, said annexed report and does 
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 
does hereb}^ 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. 

National Industrial Recovery Board, 
By W. A. Harriman, Admirdstrative Officer. 

Approval recommended: 
Joseph F. Battley, 

Division Administrator. 

Washington, D. C, 

Janua7y 31, 1935. 

123726—35 5 (215) 



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 Hardwood Distillation Industry, which was ap- 
proved November 10, 1933. 

The Amendment provides for the extension of the open price filing 
system from January 31, 1935, to June 15, 1935, and applies only to 
methanol (methyl alcohol). This Amendment is designed to extend 
in the Code for the Hardwood Distillation Industry certain fair 
trade provisions parallel with similar provisions in the Code of Fair 
Competition for the Industrial Alcohol Industry. 

A Notice of Opportunity to be Heard on the said Amendment was 
published January 10, 1935, and expired January 30, 1935, in accord- 
ance with the provisions of the National Industrial Recoverj^ Act. 
No objections or criticisms have been received. 

Findings 

The Deputy Administrator in his final report on said Amendment 
found as herein set forth, and on the basis of all the proceedings in 
this matter; 

The Board finds 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 capacitj^ 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 re- 
habilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said title of said act, including without limitation 
subsection (a) of Section 3, subsection (a) of Section 7 and subsec- 
tion (b) of Section 10 thereof. 

(c) The 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. 

(216) 



217 

(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. 

Therefore, said Amendment has been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 

January 31, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE HARDWOOD DISTILLATION INDUSTRY 

Amend Article X, Section 8 (b) as follows: 

Delete the words " January 31 " and insert in lieu thereof the 
words " June 15." 

Approved Code No. 110 — Amendment No. 4. 
Registry No. 699-03. 

(218) 



Approved Code No. 9 — Amendment No. 30 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 

As Approved on January 31, 1935 



OEDER 



AppRO^^:NG Amendment of Code of Fair Competition for the 
Lumber and Timber Products Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of amendments 
to the Code of Fair Competition for the Lumber and Timber Prod- 
ucts Industries, and Notice of Opportunity to be Heard being duly 
published thereon, and the annexed report on said amendments, 
containing findings with respect thereto, having been made and 

NOW, THEREFORE^ on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order 6859, dated September 27, 1934, and otherwise, 
does hereby incorporate by reference said annexed report, and does 
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 
does hereby order that said amendments be and they are hereby 
approved, and that the previous approval of said Code is hereby 
amended to inchide an approval of said Code in its entiretv as 
amended such approval and such amendments to take effect twenty 
(20) days from the date hereof, unless good cause to the contrary 
is shown to the National Industrial Recovery Board before that 
time and the said Board issues a subsequent order to that effect. 
National Industrial Reco\'ery Board, 
ByW. A. Harriman, Admlnisfrafive Officer. 

Approval recommended : 
W. P. Ellis, 

Division Administrator. 

Washington, D. C, 

January 31, 1935. 

(219) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: On August 19, 1933, you approved a Code of Fair Compe- 
tition for the Lumber and Timber Products Industries. 

This is a report on the Lumber Code Authority's amendment No. 
98, Avhich is being published with a Notice of Opportunity to be 
Heard. 

This amendment proposes changes to correct typographical errors ; 
to develop a uniform system of numbering and lettering; to improve 
the form of the Code and to make it possible for a new reprint to be 
published including approved amendments 1 to 24, inclusive, and any 
further amendments subsequent thereto. The amendment is not of 
a controversial nature and is to enable the Government Printing 
Office to furnish a correct reprint of the Code with various errors 
and inconsistencies removed. The Order approving the amendment 
does not become effective until twenty days after the date thereof 
which permits further modification if good cause is shown and a 
subsequent Order issued to that effect. 

The Deputy Administrator in his final report to us on said amend- 
ment to said Code having found as herein set forth and on the basis 
of all the proceedings in this matt^^r : 

We find : 

(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 including and main- 
aining united action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fuilest 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 
unem{)loyment, 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. 

(220) 



221 

(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 effective date of said 
amendment. 

For these reasons, therefore, we have approved this amendment 
to this Code. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Admrnistratwe Oificer. 
January 31, 1935. 



AMENDMENT TO CODE OF FxVIR COMPETITION FOR 
THE LUMBER AND TIMBER PRODUCTS INDUSTRY 

1. Delete the -word " Indii>tiT " from the title of the Code and 
substitute therefor the word " Industries ", so that the title of the 
Code wherever it occurs reads as follows: 

'• Lumber and Timber Products Industries ". 

2. Renumber all articles, sections and paragraphs of the Code 
by substituting for the present numeration, Roman numerals, capital 
letters, Arabic figures and small letters in the stated order, i. e., I, 
A, 1 and (a), and substitute such renumeration for present refer- 
ences to such articles, sections and paragraphs wherever such refer- 
ences occur. 

3. In Schedule "A" substitute for the present numeration of Divi- 
sions and Subdivisions the numeration of all Divisions by Arabic 
numerals, and all Subdivisions by the number of the Division and 
consecutive capital letters, i. e. : 

2. Hardwood Division. 

2A. Appalachian and Southern Hardwood Subdivision. 

2B. Mahoganv Subdivision. 

2C. Etc. 
Correct the index of Schedule "A" in accordance with such renumer- 
ation and substitute such corrected renumeration for references to 
Divisions and Subdivisions of said Schedule "A" wherever they 
occur. 

4. Rearrange the wage scale set forth in Section D (renumbered) 
of Article VII to incorporate all wage scales, including those which 
now appear as footnotes. 

5. Insert the words " Division " and " Subdivision " after each 
reference to a Division and Subdivision in Article VII, Section D 
(renumbered). 

6. Substitute for the words " area ", " zone ", '' group ", " district ", 
" section " and " territory ", wherever such wor(ls are used to indi- 
cate sub-classifications of Subdivisions or geographical locations in 
Article VII, Section D, (renumbered), the word "area". 

7. In Article VIII. Section A (renumbered) substitute for the word 
" purposes " in the second sentence, the word " persons "', so that the 
second sentence as corrected will read as follows: 

"Allotments within each Division and Subdivision for the persons 
therein shall be made ". etc. 

8. In Article VIII, Section A (renumbered), substitute for the 
phrase " Section 7 (a)", in the last sentence of that section, the phrase 
" Section 3 (e)". so that the last sentence of said section as corrected 
will read as follows : 

"In the case of Divisions or Subdivisions, the raw material of 
which is imported, the quotas and allotments may be in terms of 

(222) 



223 

imports, so far as may be consistent with the provisions of Section 
3 (e) of the National Industrial Recovery Act." 

9. Insert that portion of Amendment No. 5 whith constituted an 
addition to Article VIII of the Code under Section K (renumbered) 
and remove that amendatory paragraph from the Interim Article 
of Article VIII. 

10. In Schedule "A", under the caption " 2. Hardwood Division ", 
delete the words '" Indiana Hardwood Lumbermen's Association " in 
the sixth and seventh lines of the paragraph entitled "Administrative 
Agencies "', and substitute therefor the words " North Central Hard- 
wood Association." 

11. In Schedule "A", under the heading '* 2-C. Philippine Mahog- 
any Subdivision" (renumbered), insert the word "any" between 
the words " during " and " calendar ", in the last paragraph of Sec- 
tion (c) of the paragraph entitled "Administrative Agency ", so 
that the last clause of that paragraph will read as follows : 

" the actual production of such logs during any calendar year 
shall be considered the ' mill capacity ' of such operator." 

12. In Schedule "A", under the heading " 2-C. Philippine Mahog- 
any Subdivision" (renumbered), substitute for the word "substi- 
tute" in the paragraph numbered "(e)" of the paragraph entitled 
"Administrative Agency " the word " substantial ", so that the second 
clause of that paragraph will read as follows : 

" or if in three months after the date of the allotment any such 
person fails to use a substantial portion of his allotment," 

13. In Schedule "A", under the heading " 11. Wooden Package 
Division" (renumbered), in the paragraph numbered "(b)" of the 
paragraph entitled "Administrative Agency ", delete the words 
" Veneer Fruit and Vegetable Package Subdivision " and substitute 
therefor the words "American Veneer Package Subdivision ", and 
add the following: 

" H. Wooden Pail and Tub Subdivision ". 

14. In Schedule "A", under the heading " 11-C. Standard Con- 
tainer Subdivision" (renumbered), in the second sentence of the 
paragraph entitled "Administrative Agency ", substitute for the first 
word " Such " the word " Said ". 

15. In Schedule "A", under the heading " 11-D. Pacific Veneer 
Package Subdivision" (renumbered), in the paragraph entitled 
"Administrative Agency ", substitute for the first word in the second 
sentence, " Such ". the word " Said ". 

16. In Schedule "A", under the heading "14. Veneer and Ply- 
wood Division" (renumbered), in the paragraph entitled "Subdi- 
visions ", renumber the sub-paragraphs by substituting for the capi- 
tal letters small letters, and renumber the references to the Subdi- 
visions in Sub-paragraph (b) of the paragraph entitled " Subdivi- 
sions " by substituting for the small letters, capital letters, so that 
Sub-paragraph (b) as corrected will read as follows: 

" 1). The following subdivisions are hereby established and the 
following Administrative Agency of each subdivision is hereby 
designated : 

A. Plywood Subdivision. 

B. Commercial Veneer Subdivision. 

C. Face Veneer Subdivision." 



224 

17. In Schedule "A"', under the heading " 16. Specialty Wood 
Flooring Division" (renumbered), in the paragraph entitled "Ad- 
ministrative Agency ", substitute for the phrase " 185 North Yale 
Avenue "' the phrase " 999 Grandview Avenue ". 

18. In schedule "A", under the heading " 19. Pole and Piling Di- 
vision " (renumbered), in the paragraph entitled "Administrative 
Agency", sub-paragraph (a), substitute for the numeration of the 
subdivisions therein listed, capital letters, so that the subdivisions 
will be indicated bv consecutive capital letters. 

19. In '' Schedule "A", under the h:)ading " 20. Railroad Cross Tie 
Division '' (renumbered), in the paragraph entitled "Administrative 
Agencies ", indicate the Subdivisions referred to in Sub-paragraph 

(a) by inserting the following designation before the consecutive 
Subdivisions therein listed : " 20-A, 20-B, 20-C ". etc. 

20. In Schedule "A", under the heading " 21. Crossarm Division " 
(renumbered), in the paragraph entitled "Administrative Agenc^^ ", 
Sub-paragraph (a), substitute for the numeration of the Subdi- 
visions listed, consecutive capital letters. 

21. In Schedule " B ", Section 4, Sub-section (b), substitute for 
the reference to " Section 3 (b) ", the reference to " Section 2 (a) ", 
and for the reference to "Section 4 (b)" the reference to "Section 
3 (a) ". 

22. In Schedule " B ". Section 8, substitute for the phrase 
" through the United States ", in the first cLause, the phrase " through- 
out the United States ". 

Approved Code No. 9 — Amendment No. 30. 
Registry No. 313-1-06. 



Approved Code No. 209 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MUSICAL MERCHANDISE MANUFACTURING 
INDUSTRY 

As Approved on January 31, 1935 



ORDER 



Approving Amendmext of Code of Fair Competition for the 
Musical Merchandise 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 Musical Merchandise 
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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate, 
by reference, said annexed report and does find that said Amend- 
ment 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 does hereby order that 
said Amendment be and it is hereby approved, and that the previous 
approval of said Code as amended is hereby modified to include an 
approval of said Code in its entirety as amended, provided, however, 
that the phrase " within six months after the effective date of the 
Code " be deleted, and the phrase '" on or before May 1, 1935 " be 
substituted in Section 4 of Article V, line 5, such approval and such 
Amendment to take effect twenty (20) days from the date hereof, 
unless good cause to the contrary is shown to the National Industrial 
Recovery Board before that time and the National Industrial Recov- 
ery Board issues a subsequent order to that effect. 

National Industrial Recovery Board, 
By W. A. Harriman, Administr alive Officer. 

Approval recommended : 

KiLBOURNE Johnston, 

Acting Division Administrator, 

Washington, D. C, 

January 31, 1935. 

(225) 



REPORT TO THE PRESIDENT 

The Presidkxt, 

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 
Musical ]\Ierchandise JVIanufacturing Industry, submitted by the 
said Industrv through its Code Authority. 

On September 24, 1934, a public hearing was held in Washing- 
ton, D. C. Every person who requested an appearance was properly 
heard in accordance with statutory and regulatory requirements. 
The Amendment was revised during the recess and submitted in its 
l^resent form for approval. 

The Amendment incorporates certain standard clauses, including 
the mandatory assessment provisions, together with certain necessary 
fair trade provisions. 

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

It is found that : 

(a) The Amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and main- 
taining united action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competitive 
practices, by promoting the fullest utilization of the present produc- 
tive capacity of the industries, by avoiding undue restriction of pro- 
duction (except as nuiy be temporarily required) by increasing the 
consumption of industrial and agricultural products through in- 
creasing pui'chasing ])ower, by reducing and relieving unemploy- 
ment, by improving standards of labor, and by otherwise rehabili- 
tating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Amendment and the Code as amended are not designed 
to and Avill not ])ermit monopolies or monopolistic practices. 

(d) The Amendment and the Code as amended are not designed 
to and Avill not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(226) 



227 

(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, this Amendment has been approved. 
For the National Industrial Kecovery Board : 

W. A. Harriman, 
Administrative Officer. 
January 31, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE MUSICAL MERCHANDISE MANUFACTURING 
INDUSTRY 

1. Delete period at the end of Section 2, Article II and substitute 
comma and add the following: 

" and/or the original sale thereof by a member of the Industry." 

2. Substitute as Section 3 of Article II. 

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

3. Change Sections 3, 4, 5, and 6 to Sections 4, 5, 6, and 7. 

4. Substitute for Section 6, Article III, the following: 
Section 6. No employer shall knowingly permit any employee to 

work for any time which, when added to the time spent at work for 
another employer or employers in this Industry, exceeds the maxi- 
mum permitted herein. 

5. Substitute for Section 4, Article IV, the following : 

Section 4. 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 issuing 
certificates to such persons. Each employer shall file monthly with 
the Code Authority a list of all such persons employed by him, 
showing the wages paid to, and the maximum hours of work for such 
employee. 

6. Substitute for Section 4 of Article V, the following : 
Section 4. Standards for Safrfy avd Ilfinlth. — Ench omplovor 

shall provide for the safety and health of employees during the 
hours and at the places of employment. Standards for safety and 
health shall l)o submitted by the Code Authority to the National 
Industrial Recovery Board within six months after the effective date 
of the Code. 

7. Substitute for Section 7 of Article V, the following: 
Section 7. Pontrng. — All employers shall post and keep posted 

copies of this Code in conspicuous places accessible to all employees. 
Every member of the Industry shall comply with all rules and regu- 
lations relative to the posting of provisions of Codes of Fair Compe- 
tition which may from time to time be prescribed by the National 
Industrial Recovery Board. 

(228) 



229 

8. Add to Article V a new Section 8 to read as follows : 
Section 8. 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. 

9. Renumber Section 7, Article VI to Section 9, Article VI. 

10. Insert as new Section 7, Article VI the following: 

Section 7. If the National Industrial Recovery Board 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 National Industrial Recovery Board 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 National Industrial Recovery Board approves or unless it 
shall fail to disapprove after thirty (30) days notice to it of intention 
to proceed with such action in its original or modified form. 

11. Insert as Section 8 to follow the new Section 7 of Article VI 
the following: 

The 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 effec- 
tive date, of its activities, powers and duties hereunder, such corpo- 
ration or corporate form to be not for profit and to be known as 
the Musical Merchandise Manufacturing Industry Code Authority, 
Inc.; provided that the powers, duties, objet^ts and purposes of the 
said corporation shall, to the satisfaction of the National Industrial 
Recovery Board, be limited to the powers, duties, objects and pur- 
poses of the Musical Merchandise Manufacturing Industry Code 
Authority as provided in this Code ; provided further, that the exist- 
ence of the said corporation shall be during the term of the Code; and 
provided further, that the certificate of incorporation and by-laws 
shall be subject to the disapproval of the National Industrial 
Recovery Board. 

12. Substitute for subsection (h) of the present Section 7 of Article 
VI, the following: 

(1) It being found necessary in order to support the administra- 
tion of this Code and to maintain the standards of fair competi- 
tion establish 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 National Industrial Recovery Board for its 
approval, subject to such notice and opportunity to be heard as it 
may deem necessar}^ (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 National Industrial Recovery Board, to determine 
and obtain equitable contribution as above set forth by all members 



230 

of the Iiidustrv. and to that end, if necessary, to institute legal 
proceedinfjs therefor in its own name. 

(2) Each member of the Industr^^ shall pay his or its equitable 
contribution to the expenses of the maintenance of the Code xVu- 
thority, determined as hereinabove provided, and subject to rules 
and regulations pertaining thereto issued by the National Indus- 
trial Recovery Board. Only members of the Industry complying 
with the Code and contributing to the expenses of its administration 
as hereinabove provided (unless duly exempted from making such 
contribution) shall be entitled to participate in the selection of 
members of the C^ode Authority or to receive the benefits of any of 
its voluntary activities or to make use of anj- 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 Na- 
tional Industrial Recovery Board; and no subseijuent budget shall 
contain any deficiency item for ex|)enditures in excess of prior budget 
estimates exce^it those which the National Inchistrial Recovery Board 
shall have so approved. 

13. Strike out present Subsection (i) of the former Section 7 of 
Article VI and re-letter Subsection (j) to (i) and add thereto the 
following sentence : 

Such amendment, if approved by the National Industrial Recovery 
Board, shall become effective as a part of this Code and be binding 
upon every member of the Industry. 

14. To Article VII, add the following section : 

Section 12. Terms of /Sale. — (a) The maximum credit terms ap- 
plying to all sales by a member of the Industry to domestic jobbing 
or wholesale distributors or to manufacturers shall be 

(1) All invoices shall be due and payable net, not later than thirty 
(30) days from the end of the month of sale, and no more favorable 
allowance than 2% for cash shall be allowed for prompt payment, 
provided that such payment shall be presented or mailed on or before 
the tenth (10th) of the month following sale. 

(b) The following uniform terms shall apply to allowances and 
the acceptance of returns of merchandise from domestic jobbing or 
wholesale distributors or manufacturers: 

(1) No merchandise shall be accepted for credit, except in the case 
of factory defects or errors, delays in shipments, or non-conformance 
with orders. No claims for factory defective merchandise shall be 
adjusted by the allowance of any discount or rebate. 

(2) No merchandise which has been damaged in transit shall be 
accepted for credit, nor shall credit deductions be permitted because 
of such damage. 

Approved Code No. 209 — Amendment No. 1. 
Registry No. 1640-06. 



Approved Code No. 84F — Amendment No. 2 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

SHOE SHANK MANUFACTURING INDUSTRY 

As Approved on January 31, 1935 



OEDER 



Approving Amendment of Supplementary Code of Fair Competi- 
tion FOR THE Shoe Shank 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 an Amend- 
ment to the Supplementary Code of Fair Competition for the Shoe 
Shank Manufacturing Industry, and a Notice of Opportunity to be 
Heard having been duly given thereon and the annexed report on 
said Amendment, containing findings with respect thereto, having 
been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise, 
does hereby incorporate by reference said annexed report and does 
find that said Amendment and the Supplementary Code as consti- 
tuted 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 does hereby order that said Amendment be and it is 
hereby approved, and that the previous approval of said Supple- 
mentary Code is hereby amended to include an approval of said 
Supplementary Code in its entirety as amended. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
KiLBouRNE Johnston, 

Acting Division Administrator. 

Washington, D. C, 

January 31^ 1935. 

123726—35 6 (231) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on an Amendment to the Supplementary 
Code of Fair Competition for the Shoe Shank Manufacturing In- 
dustry, a Division of the Fabricated Metal Products Manufacturing 
and Metal Fininshing and Metal Coating Industry, to incorporate 
the principles contained in Office Memorandum No. 228, dated June 
7, 1934, relating to pricing practices and costing and accounting pro- 
visions. This Amendment was proposed in accordance with Article 
VII of the Supplementary Code as approved on February 21, 1934, 
and a Notice of Opportunity to be Heard was given on August 8, 
1934. 

FINDINGS 

The Assistant Deputy Administrator in his final report to the 
National Industrial Recovery Board on said Amendment to said 
Supplementary Code having found as herein set forth and on the 
basis of all the proceedings in this matter : 

It is found that: 

(a) The Amendment to said Supplementary Code and the Supple- 
mentary 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 man- 
agement under adequate governmental sanction and supervision, by 
eliminating 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 tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) The 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 Supplementary Code empowers the Supplementary Code 
Authority to present the aforesaid Amendment on behalf of the 
Industry as a whole. 

(d) The Supplementary Code and the Supplementary Code as 
amended are not designed to and will not permit monopolies or 
monopolistic practices. 

(232) 



233 

(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. 

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

For these reasons, therefore, this Amendment has been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Adininistrative Officer. 

Janttart 31, 1935. 



AMENDMENT TO SUPPLEMENTAKY CODE OF FAIR COM- 
PETITION FOR THE SHOE SHANK MANUFACTURING 
INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 
METAL FINISHING AND METAL COATING INDUSTRY 

Amend : Article V, by changing the Title to read : 

Open Price Filing, Methods of Cost Finding and Accounting and 
Unfair Trade Practices. 

Amend: Article V, by renumbering the old Section 1 as Section 4; 
delete the present Subsections (a), (b) and (c) thereof and reletter 
Subsections (d) to (j) inclusive in new Section 4 to (a) to (g) 
inclusive. 

Insert new Sections 1, 2 and 3, as follows : 

Section 1. Each member of the Industry shall file with a confi- 
dential and disinterested agent of the Supplementary Code Authority, 
or, if none, then with such an agent designated by the National 
Industrial Recovery Board, identified lists of all of his prices, dis- 
counts, rebates, allowances, and all other terms or conditions of sale, 
hereinafter in this Section referred to as *' price terms ", which lists 
shall completely and accurately conform to and represent the indi- 
vidual 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 Supplementary 
Code Authority. Said price terms shall in the first instance be filed 
within thirty 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 simultaneousl}' distributed to all members of the 
Industrv and to all of their customers who have applied therefor and 
have offered to defray the cost actually incurred by the Supplemen- 
tary Code Authority in the preparation and distribution thereof, 
and shall 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, provided, that prices 
filed in the first instance shall not be released until the expiration of 
the aforesaid thirty day period after the apju'oval of this Section. 
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 National 
Industrial Recovery Board. Upon request the Supplementary Code 

{2PA) 



235 

Authority shall furnish to the Xational Industrial Recovery Board 
or any duly designated agent of the National Industrial Recovery 
Board copies of any such lists or revisions of price terms. 

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

Xo 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 Section, except in accordance with such price terms, 
provided, however, that nothing in Article V of this Supplementary 
Code shall apply to sales between members of the Industry ; provided, 
further, that no sales shall be made from one member to another at 
a discount from filed prices of more than ten (10) percent. 

Dropped lines, seconds or surplus stocks may be disposed of by any 
member of the Industry at any price and on any terms and conditions, 
but only if such member of the Industry prior to such disposal has 
filed with the Supplementary Code Authority his statement in writ- 
ing, setting forth the fact of, reasons for and terms of such proposed 
disposal. 

Xo 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 Industry to change 
his price terms by the use of intimidation, coercion, or any other in- 
fluence inconsistent with the maintenance of the free and open mar- 
ket which it is the purpose of this Section to create. 

Section 2. (a) AVilfully 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 Supplementary Code Authority that any filed price 
constitutes unfair competition as destructive ])rice-cutting, imperiling 
small enterprises or tending toward monopoly or the impairment of 
code wages and working conditions. The Supplementary Code Au- 
thority 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 re- 
ferred to the Research and Planning Division of NRA, which shall 
render a report and recommendation thereon to the National In- 
dustrial Recovery Board. 

(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. 

When an emergency exists as to any given product, sale below 
the stated minimum price of such product, in violation of the emer- 
gency provisions in the two following paragraphs, is forbidden. 

(c) Emergency Provishns. — If the National Industrial Recovery 
Board, after investigation, shall at any time find both (1) that an 
emergency has arisen within the Industry adversel}' affecting small 
enterprises or wages or labor conditions, or tending toward monop- 
oly or other acute conditicms, which tend to defeat the purposes of 
the Act; and (2) that the determination of the stated minimum price 
for a specified product within the Industry for a limited period is 
necessary to mitigate the conditions constituting such emergency and 



236 

to effectuate the purposes of the Act, the Supplementary Code Au- 
thority may cause an impartial agency to investigate costs and to 
recommend to the National Industrial Recovery Board a determina- 
tion of the stated minimum price of the product affected by the 
emergency, and thereupon the National Industrial Recovery Board 
may proceed to determine such stated minimum price. 

When the National Industrial Recovery Board shall have deter- 
mined 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, it shall publish such price. There- 
after 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 sales shall be deemed destructive price 
cutting. From time to time, the Supplementary Code Authority may 
recommend review or reconsideration or the National Industrial 
Recovery Board may cause any determinations hereunder to be re- 
viewed or reconsidered and appropriate action taken. 

Section 3. The Supplementary 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 National Industrial Recovery Board for review. If approved 
by the National Industrial Recovery Board, full information con- 
cerning such methods shall be made available to all members of the 
Industry. Thereafter, each member of the Industry shall utilize 
such methods to the extent found practicable. Nothing herein con- 
tained shall be construed to permit the Supplementary Code Au- 
thority, any agent thereof, or any member of the Industry to sug- 
gest uniform additions, percentages or differentials or other uniform 
items of cost which are designed to bring about arbitrary uniform- 
ity of costs or prices. 

Approved Code No. 84F — Amendment No. 2. 
Registry No. 929-1-01. 



Approved Code No. 48 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SILK TEXTILE INDUSTRY 

As Approved on January 31, 1935 



OEDER 



Appeoa^ng Amendment of Code or Fair Competition for the Silk 

Textile Industry 

An application liaving 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order 6859, dated September 27, 1934, and otherwise, 
does hereby incorporate by reference, said annexed report and does 
find that said amendment and the Code as constituted after being 
amended comply in all respects with the pertinent provisions an(j[ 
will promote the policy and purposes of said Title of said Act, and 
does hereby order that said amendment be and it is hereby approved,, 
and that the previous approval of said Code is hereby amended ta 
include an approval of said Code in its entirety as amended. 

National Industrial Reco^^ry Board, 
By W. A. Harriman, Ad>ministrative Officer. 

Approval recommended: 
Prentiss L. Coonley, 

Division AdministroiOT. 

Washington, D. C, 

January 31, 1935. 

(237) 



KEPORT TO THE PRESIDENT 

The President, 

The White Hmose. 

Sir: On October 16. 1934, jou approved an Executive Order 
creating the Silk Textile Work Assio^nments Board and establishing 
rules and regulations for the handling of work assignments in the 
Industry until February 1, 1934. It was originally contemplated 
that by that date, the Work Assignments Board would have sub- 
mitted a permanent plan for the regulation of work assignments 
which would have been incorporated in the Code as an amendment. 

Several factors prevented this. On December 27, 1934, you ap- 
proved Executive Order 6930 giving the Work Assignments Board 
until " a reasonable time after January 1, 1935 " to submit its 
recommendations. 

The attached Amendment extends the so-called " freezing period ", 
during which time work assignments are not to be increased, until 
thirty days after the Work Assignments Board has submitted its 
recommendations for a permanent plan. 

FINDINGS 

The Deputy Administrator in his final report to the National 
Industrial Recovery Board on said amendment to said Code having 
found as herein set forth and on the basis of all the proceedings in 
this matter: 

It finds 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 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 ca])acity 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 the standards of labor, and by other- 
wise rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(238) 



239 

(c) The Code empowers the Code Authority to present the afore- 
said amendment on behalf of the industiy 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. 

For the National Industrial Recovery Board: 

W. A. Harriman, 
Administrative Officer. 

January 31, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE SILK TEXTILE INDUSTRY 

Amend Article XIII, Section (2), by deleting the words " Febru- 
ary 1, 1935 " and substituting therefor the following: 

*' one month after the report to the President as to a permanent 
plan for regulation of work assignments in the industry as provided 
in Section (5) hereof,". 

Amend Article XIII, Section (3), by deleting the words " Febru- 
ary 1, 1935 " and substituting therefor the following : 

'' one month after the report to the President as to a permanent 
plan for regulation of work assignments in the industry as provided 
in Section (5) hereof,". 

Sections (2) and (3) as amended are as follows: 

"(2) In order to provide opportunity to develop a sound method 
and adequate organization for the regulation of work assignments, 
no employer prior to one month after the report to the President as 
to a permanent plan for regulation of work assignments in the in- 
dustry as provided in Section (5) hereof, shall make any change in 
work assignment of any class of employees which shall increase the 
-effort required over that prevailing on September 21, 1934. 

" During this period the number of looms, frames or other ma- 
•chines required to be tended by any class of employees shall not be 
increased where the character of the raw material, yarn, construc- 
tion of cloth, preparatory processes, type of equipment used, or 
character of finish or put-up, is not changed. Where such changes 
do occur the number of machines tended by such employees may be 
increased or decreased in such manner as will not increase the amount 
of effort required of the worker. 

" Where, during the period above referred to, a mill resumes the 
manufacture of any specific product which it has made within six 
months prior to September 21. 1934, and where the conditions of 
manufacture enumerated in the preceding paragraph are not 
changed, then the work load formerly used on such product shall be 
the guide in determining the proper work assignment. 

" Where, on September 21, 1934, a new style of yarn or cloth or 
any other new type of product was in course of introduction or is 
thereafter during the period above referred to introduced into a 
mill or finishing plant, a tentative work load may be established 
during the period of determining a proper work load in accordance 
with the foregoing principles. 

"(3) Prior to one month after the report to the President as to a 
permanent plan for regulation of work assignments in the industry 
as provided in Section (5) hereof, on petition of the Code Authority 
■or of any employee or employer affected, or his representative, or on 

(240) 



241 

its own motion, the Silk Textile Work Assignment Board may in- 
vestigate any work assignment which has been increased since July 
1, 1933, at any mill and the mill shall show the reasons for such 
increase. If the Board finds after fair hearing such assignment 
requires excessive effort it may require its reduction accordingly." 

Approved Code No. 48 — Amendment No. 4. 
Registry No. 263-01. 



Approved Code No. 424 — Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SPICE GRINDING INDUSTRY 

As Approved on January 31, 1935 



OKDER 



AppRo\aNG Amendment of Code of Fair Competition for the Spice 

Grinding 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 Spice Grinding Indus- 
try', and opportunity to be heard having been afforded all members 
of said Industry and any objections filed having been duly con- 
sidered, and the annexed report on said amendment, containing find- 
ings with respect thereto, having been made and directed to the 
President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate 
by reference said annexed report and does 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 does 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 : 

Members of the industry may use stocks of containers now on hand, 
but in no event shall such use continue after sixty days from the date 
of this order. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
Armin W. Riley, 

Division Administrator. 

Washington, D. C. 

January 31, 1935. 

(243) 



REPORT TO THE PRESIDENT 

The President, 

The White Home. 

Sir: This is a report on an amendment to Section 1 of Article 
VII by the addition of subsection (j) to the approved Code of Fair 
Competition for the Spice Grinding Industry No. 424. This Code 
was approved on May 11, 1934. 

The Code Authority for the Spice Grindiiig Industry, in accord- 
ance with Section 2 of Article XI of said Code, having fo^md it 
necessar}' in order to maintain standards of fair competition, has 
made application for amendment of said Code to define a deceptive 
container. This is deemed advisable inasmuch as the provisions of 
Article VII, Section 1, subsection (a) which prohibit the use of de- 
ceptive containers do not actually explain what is meant by a decep- 
tive container. This amendment has been copied verbatim from 
the Federal Trade Commission's ruling of August 31, 1931. This 
ruling was based on an exhaustive study made by the Spice Grind- 
ing Industry in conjunction with the Federal Trade Commission, 

The Deputy Administrator in his final report to the National 
Industrial Recovery Board on said amendment to said Code having 
found as herein set forth and on the basis of all the proceedings in 
this matter: 

The National Industrial Recovery Board finds 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 re- 
striction of production (except as may be temporarily required), by 
increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof. 

(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. 

(244) 



245 

(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 the Code as amended has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 
January 31, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE SPICE GRINDING INDUSTRY 

The Code of Fair Competition for the Spice Grinding Industry 
shall be amended by inserting the following in Article VII as sub- 
section (j) of Section 1. 

(j) The following ounces of ground spice must not be packed in 
a container of greater capacity than specified. 

1 ounce 80 cubic centimeters. 

11/4 ounces 100 

IV2 " 120 

2 ounces 145 

3 " 200 

4 " 250 

8 " 500 

16 " 950 

The ground spices specifically covered by these rules shall be: 
Peppers of all kinds including Paprika, Ginger, Cinnamon, Cloves, 
Allspice (Pimento), Nutmeg, Mace, Turmeric, Mustard, or a mixture 
of any two or more of them, but excluding Herbs. 

Approved Code No. 424 — Amendment No. 2. 
Registry No. 142-01. 

(246) 



Approved Code No. 84D1 — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

MILK AND ICE CREAM CAN MANUFACTURING 

INDUSTRY 

As Approved on February 1, 1935 



ORDER 



Approving Amendment of Supplementary Code of Fair Competi- 
tion FOR THE Milk and Ice Cream Can 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 the approval of an 
Amendment to the Supplementary Code of Fair Competition for the 
Milk and Ice Cream Can Manufacturing Industry, and opportunity 
to be heard thereon having been duly noticed 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise, 
does hereby incorporate by reference, said annexed report and does 
find that said Amendment and the Supplementary Code as consti- 
tuted after being amended comply in all respects with the pertinent 
provisions and will promote the policies and purposes of said Title 
of said Act, and does hereby order that said Amendment be and it 
is hereby approved, and that the previous approval of said Supple- 
mentary Code is hereby amended to include an approval of said Sup- 
plementary Code in its entirety as amended, such approval and such 
Amendment to take effect twenty (20) days from the date hereof, 
unless good cause to the contrary is shown to the National Industrial 
Recovery Board before that time and the National Industrial Re- 
covery Board issues a subsequent order to that effect ; provided, how- 

123726 — 35 7 (247) 



248 

ever, that the provisions of Article V, Paragraph A, insofar as they 
provide that any existing price list shall remain in effect for a period 
of five (5) days following the filing of a revised price list, be and 
they are hereby stayed pending further Order. 

National Industrial Recovery Board, 
By W. A. Harriman, Achiinistrative OfficeT. 

Approval recommended : 
Kilbourne Johnston, 

Acting Division Administrator. 

Washington, D. C, 

February 1, 1936. 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on an Amendment to the Supplementary 
Code of Fair Competition for the Milk and Ice Cream Can Manu- 
facturing Industry, a Division of the Fabricated Metal Products 
Manufacturing and Metal Finishing and Metal Coating Industry, 
relating to additional trade practice provisions. The Amendment 
was proposed in accordance with the provisions of Article VI of the 
Supplementary Code, as approved on May 17, 1934, and an Oppor- 
tunity to be Heard was granted for the period of January 3rd to 
January 23rd, 1935. 

FINDINGS 

The Assistant Deputy Administrator in his final report to the 
National Industrial Recovery Board on said Amendment to said 
Supplementary Code having found as herein set forth and on the 
basis of all the proceedings in this matter : 

It is found that : 

(a) The Amendment to said Supplementary Code and the Supple- 
mentary Code as amended are well designed to promote tlie policies 
and purposes of Title I of the National Industrial Recovery Act, 
including the removal of 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 man- 
agement under adequate governmental sanction and supervision, by 
eliminating unfair competitive practices, by promoting tlie 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 industr3^ 

(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 Amendment and the Supplementary Code as amended 
are not designed to and will not permit monopolies or monopolistic 
practices. 

(d) 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. 

(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, therefore, the said Amendment has been ap- 
proved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative OMcer. 
February 1, 1935. 

(249) 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE MILK AND ICE CREAM CAN 
MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 
METAL FINISHING AND METAL COAITNG INDUSTRY 

Rule M of Article V of the Supplementary Code is hereby changed 
to Rule N, and the following Rule M is substituted therefor : 

Rule M. Shipments of the products of the Industry made during 
the months of December, January and February, may be given March 
1st dating; if desired, allowance may be made for anticipated pay- 
ment at a rate not exceeding one-half (i/^) of 1% per month. 

Rule M of Article V of the Supplementary Code is hereby changed 
to Rule N and amended to read as follows : 

Rule N. The giving of any guaranty against decline in price, ex- 
cept as against the seller's own decline up to date of shipment, or to 
date of invoice on dated items, is an unfair trade practice. 

Approved Code No. 84D1 — Amendment No. 1. 
Registry No. 1130-05. 

(250) 



Approved Code No. 241 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CHEWING GUM MANUFACTURING INDUSTRY 

As Approved on February 2, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Chewing Gum 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 Chewing Gum Manu- 
facturing Industry, and opportunity to be heard having been af- 
forded all members of such industry, and no objections, criticisms 
or suggestions having been submitted or filed by anyone, 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the Presidentj including 
Executive Order No. 6859, and otherwise, does hereby incorporate 
by reference said annexed report and does find that said amendment 
and the 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 does 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 amend- 
ment to take effect ten (10) days from the date hereof, unless good 
cause to the contrary is shown to the National Industrial Recovery 
Board before that time and the said Board issues a subsequent order 
to that effect. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative O fleer. 

Approval recommended: 
Armin W. Riley, 

Division Administrator. 

Washington, D. C, 

February 2, 1936. 

(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 Chewinfr Gum Manufacturing Industrj^ as approved 
after public hearing conducted in Washington, D. C, on January 30, 
1934. 

The amendment as proposed and desired by the industry is in 
accordance with tlie provisions of the Model Code relating to " Em- 
ployment by Several Employers/' and has the unanimous approval 
of the various advisory boards. 

The Deputy Administrator in his final report to the National In- 
dustrial Recovery Board on said amendment to said Code having 
found as herein set forth and on the basis of all the proceedings in 
this matter : 

The National Industrial Recovery Board finds that: 

(a) The amendment to said Code and the Code as amended are well 
designed to promote the policies and purposes of Title I of the Na- 
tional Industrial Recovery Act including the removal of obstructions 
to the free flow of interstate and foreign commerce which tend to 
diminish the amount thereof, and will provide for the general wel- 
fare by promoting the organization of industry for tlie purpose of 
cooperative action of labor and management under adequate govern- 
mental sanction and supervision, by eliminating unfair competitive 
practices, by promoting the fullest possible utilization of the present 
productive ca]jacity of industries, l)y eliminating undue restriction 
of production (except as may be temporarily required), by increas- 
ing the consumption of industrial and agricultural products through 
increasing purchasing power, by reducing and relieving unemploy- 
ment, b}' 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 limitation 
subsection (a) of section 3, subsection (a) of section 7 and subsection 
(b) of section 10 thereof. 

(c) The amendment and the Code as amended are not designed to 
and will not permit monopolies or monopolistic jiractices. 

(d) The amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(e) Those engaged in other steps of the economic process have not 
been deprived of the right to l>e heard prior to approval of said 
amendment. 

For these reasons the amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Adfninistrative Offtcer. 
February 2, 1935. 

(252) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE CHEWING GUM MANUFACTURING INDUSTRY 

The present Section 6 of Article III, shall be deleted and the 
following shall be substituted in its place and stead and shall read 
as follows : 

DUPLICATE EMPLOYMENT AMENDMENT 

" Section 6. Employment hy Several Employers. — No employer 
shall knowingly permit any employee to work for such employer for 
a time which, when totaled with that already performed with another 
employer or employers, exceeds the maximum permitted herein." 

Approved Code No. 241 — Amendment No. 1. 
Registry No. 109-1-01. 

(253) 



Approved Code No. 230 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PAPER BAG MANUFACTURING INDUSTRY 

As Approved on February 2, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Paper Bag 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 amendment 
to the Code of Fair Competition for the Paper Bag Manufacturing 
Industry, and a hearing having been duly held thereon and the an- 
nexed report on said amendment, containing findings with respect 
thereto, having been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6543-A, dated December 30, 1933 and Execu- 
tive Order No. 6859, dated September 27, 1934, and otherwise; does 
hereby incorporate, by reference, said annexed report and does 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 
does hereby order that said amendment be and it is hereby ap- 
proved, and that the previous approval of said Code is hereby 
amended to include an approval of said Code in its entirety as 
amended, such approval and such amendment to take effect ten (10) 
days from the date hereof, unless good cause to the contrary is 
shown to the National Industrial Recovery Board before that time 
and the National Industrial Recovery Board issues a subsequent 
Order to that effect. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
Joseph F. Battley, 

Division Administrator. 

Washington, D. C, 

February 2, 1935. 

(255) 



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 Paper Bag Manufacturing Industry which was 
approved by you on January 26, 1934. 

The purpose of this amendment is to provide for the approval 
of a budget for the basic Code Authority and the several divisional 
Executive Authorities, and to make contribution to Code adminis- 
tration expense compulsory upon the members of the Industry. 

The Deputy Administrator in his linal report on said amendment 
of said Code having found as herein set forth and on the basis of 
all the proceedings in this matter: 

The Board finds that: 

(a) The amendment of said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
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 re- 
quired), by increasing the consumption of industrial and agricultural 
products through increasing purchasing power, by reducing and re- 
lieving 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 empowers the Code Authority to propose the amend- 
ment 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 the amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Admmistrative OiJicer. 
February 2, 1935. 

(256) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE PAPER BAG MANUFACTURING INDUSTRY 

The Code of Fair Competition for the Paper Bag Manufacturing 
Industry is hereby amended as follows: 

By deleting Article II, Section 5 thereof and substituting therefor 
the following: 

5. It being found necessary in order to support the adniinistration 
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 and the Executive Authorities of the Subordinate Codes 
of the several divisions of the Industry are hereby 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 wdiich 
shall be held in trust for the purj)oses of this Code and the Subordi- 
nate Codes for said several divisions. 

(b) To submit to the National Industrial Recovery Board (here- 
inafter referred to as " the Board ") for approval, subject to such 
notice and opportunity to be heard as the Board may deem necessary 

(1) an itemized budget for the Code Authority and for the several 
Executive Authorities of the estimated expenses of the Code Author- 
ity and said Executive Authorities for the foregoing purposes and 

(2) an equitable basis upon which the funds necessary to support 
such industrial and divisional budgets shall be contributed by mem- 
bers of the Industry and of the said several divisions. 

(c) After such budgets and bases of contribution shall have been 
approved by the Board, to determine and obtain equitable contribu- 
tion as above set forth by all members of the Industry and of the 
members of the said respective divisions and to that end, if neces- 
sary, to institute legal proceedings therefor in the name of the Code 
Authority or the Executive Authority of the division concerned as 
the case may be. 

(d) Each member of the Industry and each member of each divi- 
sion thereof shall pay his or its equitable contribution to the expenses 
of maintenance of the Code Authority and of the Executive Author- 
ity of each division of the Industry of which he or it may be a mem- 
ber, determined as hereinabove provided, and subject to rules and 
regulations pertaining thereto issued by the Board. Only members 
of the Industry complying with the General and Subordinate Codes 
and contributing to tlie expenses of their 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 any Executive Authority or to receive the ben- 
efits of any of the voluntary activities of such Authorities or to make 
use of any emblem or insignia of the National Recovery Adminis- 
tration, 

(257) 



258 

(e) Neither the Code Authority nor anj' Executive Authority of 
any division of the Industry shall either incur or 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 Board, 
and no subsequent budget shall contain any deficiency item for ex- 
penditures in excess of prior budget estimates except those which the 
Board shall have so approved. 

Approved Code No. 230 — Amendment No. 1. 
Registry No. 401-1-01. 



Approved Code No. 441 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BIAS TAPE INDUSTRY 

As Approved on February 4, 1935 



ORDER 



Appro\'ing Amendment of Code of Fair Competition for the Bias 

Tape 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 Bias Tape Industry, and a 
hearing being 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate by 
reference said annexed report and does find that said amendments 
and the Code as constituted after being amended complies in all 
respects with the pertinent provisions and will promote the policy 
and purposes of said Title of said Act, and does hereby order that 
said amendments be and they are 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. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended: 
Prentiss L. Coonley, 

Division Administrator. 

Washington. D. C, 

February 4, 1936. 

(259) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the amendments to the Code of Fair 
Competition for the Bias Tape Industry. A notice of the hearing 
on these amendments was published on October 31, 1934:; and a 
hearing was held on November 20, 1934. The amendments, which 
are attached, were j^resented by duly qualified and authorized repre- 
sentatives of the Industry, complying Avith statutorj^ requirements, 
and being the duly constituted Code Authority under the provisions 
of the said Code for the said Industry. 

These amendments provide for additional unfair trade practices 
with regard to quality designations, mutuality of contracts, adver- 
tising allowances, imitation of trade marks and other unfair trade 
practices. 

The Deputy A(hninistrator in his final report to the National 
Industrial Recovery Board on said amendments to said Code having 
found as herein set forth, and on the basis of all the proceedings 
in this matter; 

The National Industrial Recovery Board finds 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 of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fullest possible utilization oi the 
present productive capacity of industries, by avoiding undue re- 
striction of production (except as may be temporarily required), by 
increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
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 
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. 

(260) 



261 

(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 tiiese reasons these amendments have been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Ojfieer. 
February 4, 1935. 



AJSIENDMENT TO CODE OF FAIR COMPETITION FOR 
THE BIAS TAPE INDUSTRY 

Article VIII, Section 11 is amended by the addition of : 

No additional dating shall be allowed, except that goods shipped 
from the 25th to the end of the month may be regarded for discount 
purjjoses as having been shipped as of the 1st of the following 
month. 

Article VIII is amended by the addition of the following new 
sections : 

13. Marking Bias Tape. — No member of the industry shall sell or 
offer for sale any bias tape for household use, put up on cards, rolls, 
or other packages or boxes, except in accordance with the following 
provisions : 

(a) The cards, rolls, or other packages or boxes shall have afiixed 
thereto in a visible and conspicuous place a label or stamp specifying 
the following: 

(1) Length and yards contained thereon in said cards, rolls, pack- 
ages or boxes. 

(2) The quality or finish of the material in conformity with the 
following table of designation : 

Lawn 
72x68, or Lower. Lawn 
76x72 Fine Lawn 
80x80 and Upward, Extra Fine Lawn 

Penale 
(54x60 or Lower, Percale 
68x72, and Upward, Fine Percale 

nainsook 

76x72 or Lower, Nainsook Finish 

80x80 Nainsook 

88x80 Fine Nainsook 

96x92, and Upward, Extra Fine Nainsook 

(3) The folded width of the material in conformity with the 
following width specifications : 

a. Single fold : 

No. 



1 


2 3 4 5 6 7 8 


9 


10 


11 


4/16 


5/16 6/16 7/16 8/16 9/16 10/16 11/16 


12/16 


13/16 


14/16 


12 


Jh. .r," 









15/16 16/16 "' '■ 

b. Additional sizes must be marked or numbered on the basis of 
-^" for each size number. 

c. All single fold bias tape should bo folded with a center opening 
not exceeding -^^," with the exception of bias tape made from mate- 
rial weighing 1 lb. per 5.35 yards or heavier. 

(262) 



263 

d. For double fold bias tape the finished width shall be not less 
than l^ of the width for single fold as set forth in the foregoing 
table. All double fold bias tape shall be folded with a center open- 
ing not exceeding l%'^ 

(b) The actual length of bias tape contained on the cards, rolls, 
or other packages or boxes, sliall not deviate from the length indi- 
cated by the label or stamp affixed in accordance with Section 13, 
Sub-section (a), (1) in excess of 2 percent. 

14. M erceHzation. — No member of the industry shall use the term 
" Mercerized " on any label or stamp affixed to any bias tape unless 
such material has been put through the process of mercerization. 

15. Color Fastness. — Statements to indicate " fast color " may be 
applied only when the material after dyeing has passed a washing 
test in accordance with the requirements for such tests as are or shall 
be approved by the American Society For Testing Materials. The 
Code Authority shall submit to the Administration within sixty days 
from the date hereof a certificate showing that the standards to be 
used by the industry under this provision have received a certificate 
of approval from the American Society For Testing Materials. Said 
approved standards shall be forwarded by the Code Authority to 
every member of the industry. 

16. Mutuality of Contracts. — Members of the industr}^ shall set 
forth in all contracts the following: 

(a) All contracts not for immediate delivery shall be in writing, 
shall specify definite quantities, shall stipulate that the delivery spec- 
ifications shall be distributed fairly and equitably throughout the 
period of said contract, and said contract shall be duly executed by 
parties thereto. 

(b) Nothing contained herein shall prevent the use of usual clauses 
in contracts as to the effect of force majeure, acts of God, and simi- 
lar events beyond the control of either party. 

IT. Sainfles. — No member of the industry shall give samples as 
an integral part of a sale or as a means of making a specific sale. 

18. Advertising Allowances. — No member of the industry shall 
arrange for advertising allowances except in agreements entirely 
separate and distinct from sales agreements. 

No member of the industry shall make agreements for payment 
of advertising unless such agreements shall definitely specify exactly 
how much shall be paid and the method of payment by the giver of 
the allowance, exactly what services shall be rendered by the recipi- 
ent of the allowance, and the method of auditing the performance 
which the allowance giver shall employ. Such agreements shall pro- 
vide for submission of proof that such allowances are expended for 
the purpose set forth in the agreement. 

19. Substitution of Merchandise. — No member of the industry 
shall ship or deliver products which do not conform with the samples 
submitted, or with representations made prior to securing an order 
and with the effect of deceiving or misleading the purchaser. 

No member of the industry shall sell an inferior product at a price 
appropriate for such product with the understanding that a product 
of superior quality selling at a higher price will be delivered. How- 
ever, a seller acting in good faith and because of an actual unfore- 
seen shortage of the product sold, may, in order to service the cus- 
tomer, deliver a product of a quality superior to the product sold. 

123726—35 8 



264 

20. Imitation of Trade Marks, Etc. — No member of the Industry 
shall imitate or simulate another's " put-up ", trade mark, trade 
names, slogans, and other marks of identification, including labels 
and the dress of the goods, which is intended to or does deceive or 
mislead the purchaser, or result in the commercial disadvantage to 
the owner of an already established '* put-up ", trade mark, trade 
names, slogans, and other marks of identification, including labels 
and the dress of the goods. 

21. False disyarage'tneiit of Cotnpetitors. — No member of the indus- 
try shall defame a competitor by falsely imputing dishonorable con- 
dur't. inability to perform contracts, questionable credit standing or 
by other false representation or by falsely disparaging the grade or 
quality of his goods. 

22. Use of Competitors Merchandise. — No member of the industry 
shall by purchase or exchange acquire another manufacturer's mer- 
chandise from any customer or prospective customer for the purpose 
of substituting his own merchandise or influencing the sale of mer- 
chandise to such customer or prospective customer, provided how- 
ever, it shall not be an unfair trade practice to acquire a sample of a 
competitor's merchandise for the purpose of comparison or analysis. 

23. Aiding or Abetting Another in the Use of Unfair Trade Prac- 
tices. — No member of the industry shall wilfully aid or abet another 
in any unfair trade practices. 

Approved Code No. 441 — Amendment No. 1. 
Registry No. 251-09. 



Approved Code No. 230 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PAPER BAG MANUFACTURING INDUSTRY 

As Approved on February 5, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Paper Bag Manufacturing Industry 

amendment to sections 1 and 4 of article v 

WHEREAS, Section 1 of Article VI of the above named Code 
provides as follows: 

" There shall be a rehearing b}^ the Administrator on all of the 
provisions of Articles IV and V of this Code. Such hearing shall 
be held at the same time and place, and on the same notice as the 
hearing for the purpose of determining the adequancy of the mini- 
mum wages established in the Code of Fair Competition for the 
Paper and Pulp Industry, directed to be held by the Executive 
Order approving said Code, dated November 17, 1933. In the event 
that any of the provisions of the said Paper and Pulp Code relat- 
ing to wages and hours of labor shall be amended in accordance with 
recommendations made by the Administrator and approved by the 
President as provided in such Executive Order, then and in that 
event such amended provisions shall apply also to this Industry 
and this Code shall be deemed to have been amended so as to conform 
thereto and the Administrator may direct tliat this Code be re- 
printed and republished, as so amended " ; and 

WHEREAS, a public hearing has been held and a report and 
recommendation has been made and submitted to the President 
as provided in said Executive Order and said Code for the Paper 
Bag Manufacturing Industry in full compliance with the provisions 
of Title I of the National Industrial Act, approved June 16, 1933; 
and 

WHEREAS, the President has this day approved an Order 
amending the provisions of Article V of the Code of Fair Competi- 
tion for the Paper and Pulp Industry ; and 

WHEREAS, the annexed report on said amendment to the Code 
of Fair Competition for the Paper Bag Manufacturing Industry 

(265) 



266 

containing findings with respect thereto has been made and directed 
to the President : 

NOW. THEREFORE, on behalf of the President of the United 
States, tlie National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No."^ 68r.9, Section 1 of Article VI of said Code 
of Fair Competition for the Paper Bag Manufacturing Industry 
and otherwise, does hereby incorporate by reference said annexed 
report and does 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 does 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. 

National Industrial Recovery Board, 
By W. A. Harriman, AdTninistrative Officer. 

Approval recommended : 
Joseph F. Battley, 

Division Administrator. 
Washington. D. C, 

February J, 1935. 



EEPORT 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 Paper Bag Manufacturing Industry. Your Order 
dated November IT, 1933, approving the Code of Fair Competition 
for the Paper and Pulp Industry, provided, in part, that within 
ninety days after the effective date of the Code for the Paper and 
Pulp Industry a further hearing shall be held for the purpose of 
determining the adequacy of the minimum wages established in 
said Code, after which a report and recommendation should be sub- 
mitted to you for your further order which should have the effect of 
a condition to your approval of said Code. 

Because of the relationship between the Paper and Pulp Industry 
and the Paper Bag Manufacturing Industry, the wage provisions in 
the two Codes were identical. However, in view of the provision 
in your order approving the Code for the Paper and Pulp Industry 
a provision was included in the Paper Bag Manufacturing Industry 
Code requiring that a similar hearing be held on that Code and that 
in the event any of the provisions of the Paper and Pulp Code re- 
lating to wages and hours of labor should be amended, then and in 
that event, such amended provisions ?hould apply also to the Code 
for the Paper Bag Manufacturing Industry. 

Public hearings were held in Washington, D. C, on February 13, 
1934. Thereafter a report and recommendation was submitted to 
you and you have this day approved an amendment to the provisions 
of the Code of Fair Competition for the Paper and Pulp Industry 
relating to wages. 

The effect of the amendment will be to increase by two cents per 
hour the minimum wage of all laborers, mechanical workers and 
artisans, except female employees in the Southern Zone; to delete 
the present provision fixing minima for all other employees at $12.00, 
$14.00, Sl-kriO, and $15.00, depending upon the population of the city 
in which plants may be located, and in lieu thereof to provide min- 
ima of $14.00, $15.00, and $16.00 for such employees in the Southern, 
Central and Northern Zones, respectively; and to delete a provision 
permitting sub-minimum wages, based upon the rate paid on July 
15, 1929, as low as 90% of the minimum. 

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

The Board finds 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- 

(267) 



268 

tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general wel- 
fare by promoting the organization of industry for the purpose of 
cooperative action of labor and management under adequate govern- 
mental sanction and supervision, by eliminating unfair competitive 
practices, by promoting the fullest possible utilization of the present 
productive capacity of industries, by avoiding undue restriction of 
production (except as may be temporarily required), by increasing 
the consumption of industrial and agricultural products through in- 
creasing purchasing power, by reducing and relieving unemployment, 
by improving standards of labor, and by otherwise rehabilitating 
industry, 

(b) The Code as 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 provides that such amendment shall become eflfec- 
tive upon approval of an identical amendment to the Code of Fair 
Competition for the Paper and Pulp Industry. 

(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, the said Amendment has been 
approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administratwe Ojflcer. 
February 5, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE PAPER BAG MANUFACTURING INDUSTRY 

Article V, Section 1 is herey deleted in its entirety and in lieu 
thereof the following is inserted : 

1. The minimum rate of wage of any laborer, mechanical worker, 
or artisan employed in any plant, mill, or factory, or on work con- 
nected with the operation of any sucli plant, mill or factory shall be 
as follows: 

(a) In the Northern Zone, which shall consist of all the territory 
of the United States except the states described in Sub-sections (b) 
and (c) hereof: Male: 40 cents per hour; Female: 35 cents per hour. 

(b) In the Central Zone, which shall consist of the States of 
Delaware, Maryland, Virginia, West Virginia, Kentucky, Tennessee, 
North Carolina and the District of Columbia: Male: 37 cents per 
hour; Female: 32 cents per hour. 

(c) In the Southern Zone, which shall consist of the States of 
South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, 
Arkansas and Texas: Male: 32 cents per hour; Female: 30 cents 
per hour. 

Article V, Section 4 is hereby deleted and in lieu thereof the 
following is inserted: 

4. The minimum rates of wages for all other employees, except 
commission salesmen, shall be as follows : 

(a) In the Northern Zone as defined in Section 1 hereof, $16.00 
per week. 

(b) In the Central Zone as defined in Section 1 hereof, $15.00 per 
week. 

(c) In the Southern Zone as defined in Section 1 hereof, $14.00 
per week. 

Approved Code No. 230— Amendment No, 2. 
Registry No. 401-1-01. 

(269) 



Approved Code No. 120 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PAPER AND PULP INDUSTRY 

As Approved on February 5, 1935 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Approving Amendment of Code of Fair Competition for the 
Paper and Pulp Industry 

amendment to article v 

Pursuant to authority vested in me by Title I of the National 
Industrial Recovery Act, upon due consideration of the facts, and 
upon the report and recommendation and findings of the National 
Industrial Recovery Board with respect to the adequacy of the min- 
imum wages established in the Code of Fair Competition for the 
Paper and Pulp Industry as approved by me on November 17, 1933, 

I, Franklin D. Roosevelt, President of the United States, do 
hereby adopt and approve the said report, recommendation and 
findings of the National Industrial Recovery Board, and 

DO HEREBY ORDER that the Code of Fair Competition for 
the Paper and Pulp Industry be and the same is hereby amended 
to the extent set forth in Schedule A attached hereto and hereby 
made a part hereof, and, 

DO HEREBY FIND that said amendment and the Code as 
constituted after being amended comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and, 

DO HEREBY ORDER that said amendment be and it is hereby 
approved, and that the previous approval of said Code is hereby 
amended to include an approval of said Code in its entirety as 
amended. 

FRANKLIN D. ROOSEVELT. 

The White House, 

February J, 1935. 

Approval recommended : 

National Industrial Recovery Board, 
By W. A. Harriman, 

Administrative Officer. 

(271) 



LETTER OF TRANSMITTAL 

The President, 

The 'White Home. 

Sir : This is a report on an amendment to the Code of Fair Compe- 
tition for the Paper and Pulp Industry. Your Order dated Novem- 
ber 17, 1933, approving said Code, provided in part that within 90 
days after the effective date of said Code, a public hearing should 
be held for the purpose of determining the adequacy of the minimum 
wages established in said Code, after which a report and recom- 
mendation should be submitted to you for further order. 

Pursuant to such provision public hearings were held in Washing- 
ton, D. C. on February 13, 1934. Thereafter, the Industry, through 
the Paper Industry Authority, assented to the proposed amendment. 
The Deputy Administrator has submitted a report and recommenda- 
tions, which are attached hereto and included herein by reference. 

The proposed amendment will increase by two (2) cents per hour 
the minimum wage of all laborers, mechanical workers and artisans, 
except female employees in the Southern zone; delete the present 
provisions respecting minimum wages of other employees, ranging 
irom $12.00 to $14.50 per week according to population of the cities 
in which plants are located and substitute minima of $14.00, $15.00 
and $16.00 per week for such employees in the Southern, Central and 
Northern Zones, respectively; and delete a provision permitting sub- 
minimum wages equal to the rates paid on July 15, 1929 but not less 
than 90% of the minimum rates. 

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

The Board finds that: 

(a) The Amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose of 
cooperative action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair com- 
petitive practices, bv promoting the fullest possible utilization of 
the present productive capacity of industries, by avoiding undue 
restriction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 

(272) 



273 

tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Paper Industry Authority to present 
and assent to the Amendment on behalf of the industry as a whole. 

(d) The Amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The Amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, therefore, the Board recommends approval of 
this Amendment to said Code. 

For the National Industrial Recovery Board: 

W. A. Harriman, 
Administrative Officer. 
February 4, 1935. 



Schedule A 

AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
PAPER AND PULP INDUSTRY 

Article V, Section 1, of said Code is hereby deleted in its entirety 
and in lieu thereof the following is inserted : 

1. The minimum rate of wage of any worker referred to in Sub- 
sections (a), (b), (c), and (d), of Section 1 of Article IV shall be 
as follows: 

(a) In the Northern Zone, which shall consist of all the territory 
of the United States except the states described in Sub-sections (b) 
and (c) hereof: 

Male : 40 cents per hour : Female : 35 cents per hour 

(b) In the Central Zone, which shall consist of the otates of Dela- 
ware, Maryland. Virginia, West Virginia, Kentucky, Tennessee, 
North Carolina and the District of Columbia: 

Male: 37 cents per hour; Feniale: 32 cents per hour 

(c) In the Southern Zone, which shall consist of the States of 
South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, 
Arkansas and Texas: 

Male: 32 cents per hour; Female: 30 cents per hour 
Article V, Section 5 of said Code is hereby deleted and in lieu 
thereof the following is inserted : 

0. The minimum rate of wage for all employees described in Sub- 
section (f) of Section 1 of Article IV shall be as follows: 

(a) In the Northern Zone as defined in Section 1 hereof, $16.00 
per week 

(b) In the Central Zone as defined in Section 1 hereof, $15.00 per 
week 

(c) In the Southern Zone as defined in Section 1 hereof, $14.00 
per week 

Approved Code No. 120 — Amendment No. .3. 
Registry No. 405-1-04. 

(274) 



Approved Code No. 427 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOB THE 

CURLED HAIR MANUFACTURING INDUSTRY AND 
HORSE HAIR DRESSING INDUSTRY 

As Approved on February 6, 1935 



ORDER 



Approving Amendment of Code of Falr Competition for the 
Curled Hair Manufacturing Industry and Horse Hair 
Dressing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recover}' Act. approved June 16. 1933, for approval of amendments 
to a Code of Fair Competition for the Curled Hair Manufacturing 
Industry and Horse Hair Dressing Industry, and an opportunity 
to be heard thereon having been given 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate 
by reference said annexed report and does find that said amendments 
and the Code as constituted after being amended complies in all 
respects with the pertinent provisions and will promote the policy and 
purposes of said Title of said Act, and does hereby order that said 
amendments be and they are hereby approved, and that the previous 
approval of said Code is hereby amended to include an approval of 
said Code in its entirety as amended, such approval and such amend- 
ments to take effect ten (10) days from the date hereof, unless good 
cause to the contrary is shown to the National Industrial Recovery 
Board before that time and the National Industrial Recovery Board 
issues a subsequent Order to that eflPect. 

National, Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer . 

Approval recommended: 
Prentiss L. Coonley. 

Division A dministrator. 

Washington, D. C, 

Fehmury 6, 1935. 

(275> 



EEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on amendments to the Code of Fair Compe- 
tition for the Curled Hair Manufacturing Industry and Horse Hair 
Dressing Industry. Notice of Opportunity to be Heard on these 
amendments was published on December 21, 1934; no objections were 
received within the given twenty (20) day period ending January 
10, 1935. The amendments, which are attached, were presented by 
duly qualified and authorized representatives of the Industry, com- 
plying with statutory requirements, and being the duly constituted 
Code Authority for the Curled Hair Manufacturing Industry under 
the provisions of said Code for said Industries. 

These amendments provide for: deletion from the Code as it is 
now written of all reference to the Horse Hair Dressing Industry 
(this Industry is operating under an approved Basic Code of Fair 
Competition : deletion from the Code as it is now written of all ref- 
erence to "Administrator " and amending the Code to include a 
definition of "National Industrial Recovery Board"; and deletion 
from the Code as it is now written of Article VIII " Merchandising " 
and substituting therefore " Open Price Filing " as set forth in Office 
Manual, Part II, Section 3031.152. 

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

The National Industrial Recovery Board finds that: 

(a) The amendments to the 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 industry, by avoiding 
undue restriction of production (except as may be temporarily re- 
quired), 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 reliabilitating 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. 

(276) 



277 

(c) The Code Authority is empowered 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 the effective date 
of said amendments. 

For these reasons these amendments have been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 

February 6, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE CURLED HAIR MANUFACTURING INDUSTRY AND 
HORSE HAIR DRESSING INDUSTRY 

Delete all reference to the Hoi-se Hair Dressing Industry wherever 
any words referring to such Industry may occur. 

Article II — Definitions 

Delete Section o of Article II — Definition of Horse Hair Dressing 
Industry — and renumber Sections 4, 5, (j, and 7 to read Sections 3, 
4, 5, and 6, respectively. 

Delete all reference to "Administrator " and substitute therefore 
" N. I. R, B.", making the necessary changes in verbs and pronouns 
after the term '' N. I. R. B.", and amend Section 7 to read as follows: 

6. The terms "Act "' and " N. I. R. B." as used herein mean, re- 
spectively, Title I of the National Industrial Recovery Act and the 
National Industrial Recovery Board. 

Article VI — Administration 

Delete all reference to a Code Authority for the Horse Hair Dress- 
ing Industry — Section 1 of Article VI — so that Section 1 of Article 
VI will read as follows : 

1. A Code Authority is hereb}' established to cooperate with the 
N. I. R. B. in the administration of this Code and shall consist of 
three (3) members who shall be chosen by the Curled Hair Manufac- 
turing Industry through a fair method of selection approved by the 
N. I. R. B. The N. I. R. B. in its discretion may appoint not more 
than tliree (3) additional members without vote and witliout com- 
pensation from the Industry to serve for such period of time and to 
represent the N. I. R. B. or such group or groups as it may designate. 

Delete Article VIII — Merchandising — and substitute therefore the 
following : 

Article VIII — Open Piuce Filing 

1. Each member of the Curled Hair Manufacturing Industry shall 
file with a confidential and disinterested agent of the Code Authority 
or, if none, then with such an agent designated by the N. I. R. B., 
identified lists of all of his prices, discounts, rebates, allowances, and 
all other terms or conditions of sale, hereinafter in this Article re- 
ferred to as " price terms ". which lists shall completely and accu- 
rately 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 nonstandard products of said member as 
shall be designated by the Code Authority. Said price terms shall in 
the first instance be filed within (15) days after the date of ap- 

(278) 



279 

proval 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 not if 3" 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 
actually incurred by the Code Authority in the preparation and dis- 
tribution thereof, and be available for inspection by any of their cus- 
tomers 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; 
provided that prices filed in the first instance shall not be released 
until the expiration of the aforesaid fifteen day period after the ap- 
proval of this provision. 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 N. I. R. B. Upon request, the Code Authority shall furnish 
to the N. I. R. B., or any duly designated agent of the N. I. R. B., 
copies of any such lists or revisions of price terms. 

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

3. No member of the industry shall sell or offer to sell any prod- 
ucts/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. 

4. No member of the industry 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 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. 

Approved Code No. 427 — Amendment No. 1. 
Registry No. 1627-02. 



123726—35- 



Approved Code No. 125 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

UPHOLSTERY AND DRAPERY TEXTILE 
INDUSTRY 

As Approved on February 6, 1935 



ORDER 



AppKo^^NG Amendment of Code of Fair Competition for the 
Upholstery and Drapery 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 Upholstery and Drapery 
Textile Industry, and hearings having been duly held thereon and 
the annexed report on said amendment, 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise, 
does hereby incorporate, by reference, said annexed report and does 
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 
does 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 with 
the exception that: 

The approval and the amendment of Subsections (d), (f), (g), 
(i), (j), (1) and (n) of Section 1 of Article VIII shall take effect 
twenty (20) days from the date hereof, unless good cause to the 
contrary is shown to the National Industrial Recovery Board before 
that time and the National Industrial Recovery Board issues a 
subsequent order to that effect. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
Prentiss L. Coonley, 

Division Adminifftrator. 

Washington, D. C, 

Fehruary 6, 1935. 

(281) 



REPORT TO THE PRESIDENT 

Tlie President, 

The White House. 

Sir: This is a report on a public hearing on an amendment to 
the Code of Fair Competition for the Upholstery and Drapery 
Textile Industry held on November 14, 1934 in Room 127 of the 
Willard Hotel, Washington, D. C. The amendment which is at- 
tached was presented by duly authorized representatives of the 
Industry, complying with statutory requirements and being the 
same agency that originally submitted the Code. 

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

The following is a ivsume of the amendment : 

Article II 

Section 5, which defines " member of the Code " is deleted since 
the present amendment includes a mandatory assessment provision. 
Section 6 defines the National Industrial Recovery Board. 

Article III 

Section 1 establishes maximum hours for certain classes of em- 
ployees now excepted. 

Section 3 enumerates those employees excepted from maximum 
hours. 

The change in Section 5 is merely a verbal alteration, " Board " 
being substituted for "Administrator." 

The new Section 7 of Article IV is the standard provision con- 
cerning handicapped workers. 

Article VI 

The changes in Section 1 are merely verbal alterations, " Board '' 
being substituted for "Administrator " wherever it occurs. 

An addition to Section 1 provides that proposed amendments to 
the Code shall first be referred to the Industry. 

The changes in Sections 2, 3 and 4 are merely verbal alterations, 
" Board " being substituted for "Administrator " wherever it occurs. 

The renumbering of Section 6 as Section 12 is merely an editorial 
change. 

Sections 6 and 7 are deleted since they are in conflict with certain 
provisions of the present amendment. 

A new Section 6 contains the standard provision concerning the 
keeping of records of transactions in the Industry. 

(282) 



283 

A new Section 7 contains the standard provision concerning sub- 
mission of statistical information to the National Industrial 
Recovery Board. 

A new Section 8 contains the standard mandatory assessment 
clause. 

A new Section 9 contains the standard provision for the payment 
of equitable contribution to the expenses of maintenance of the Code 
Authority. 

A new Section 10 contains a standard clause concerning expenses 
in excess of the amount of an approved budget. 

A new Section 11 defines the liability of members of the Code 
Authority. 

The existing Article VII is deleted and a new Article VII is sub- 
stituted therefor which contains the standard provisions concerning 
cost finding and destructive price cutting. 

The existing Article VIII is deleted and a new Article VIII is 
substituted therefor which contains provisions to be included in sales 
contracts and order blanks. 

Article IX 

The existing Section 5 is deleted and a new Section 5 substituted 
therefor concerning the distribution of sample cuttings. 

The changes in Section 6 are merely verbal alterations, " Board " 
being substituted for "Administrator " in the first and second 
sentences. 

Section 7 is deleted since this provision is no longer operative and 
a new Section 7 is substituted therefor which concerns false 
invoicing. 

Article X 

The changes in Section 6 are merely verbal alterations " his " and 
" he " being deleted and " the Board's " and " the Board " being sub- 
stituted therefor. 

Section 10 is the standard clause providing for the establishment 
of standards of safety and health. 

FINDINGS 

The Deputy Administrator in liis final report to the National In- 
dustrial Recover}?- Board on said amendment to said Code having 
found as hereinafter set forth on the basis of all the proceedings in 
this matter; 

The National Industrial Recovery Board finds 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 removal of obstructions 
to ihe^ free fi.ow 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 pro- 



284 

ductive capacity of industries, by avoiding undue restriction of pro- 
duction (except as may be temporarily required), by increasing the 
consumption of industrial and agricultural products through in- 
creasing purchasing power, by reducing and relieving unemploy- 
ment, by improving the standards of labor and by otherwise rehabil- 
itating industry; 

(b) The Code as amended complies in all respects with the 
pertinent provisions of said Title of said Act, including without 
limitation Subsection (a) of Section 3, Subsection (a) of Section 
7, and Subsection (b) of Section 10 thereof; 

(c) The Code empowers the Code Authority to present the 
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 j^ermit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

(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. 

For the National Industrial Recovery Board: 

W. A. Harriman, 
Administrative Ojfjicer. 

February 6. 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOE 
THE UPHOLSTERY AND DRAPERY TEXTILE IN- 
DUSTRY 

Article II — Definitions 

Delete Section 5. 

Section 6. Renumber as Section 5. 

Delete Section 7. Substitute therefor Section 6 as follows: 

Section 6. The term " Board " as used herein means the " Na- 
tional Industrial Recovery Board " appointed by the President under 
the National Industrial Recovery Act. 

Renumber Section 8 as Section 7. 

Renumber Section 9 as Section 8. 

Renumber Section 10 as Section 9. 

Article III — Hours 

Delete Section 1 and substitute therefor a new Section 1, as 
follows : 

Section 1. No engineer, electrician, cleaner, fireman or employee 
working on a repair shop, shipping or outside crew, shall be per- 
mitted to work more than 40 hours per week, with a tolerance of 
ten percent ; provided, however, that in the case of emergency main- 
tenance or emergency repair work, involving breakdowns or protec- 
tion of life or property, the foregoing maximum hours shall not ap- 
ply, and provided further that all hours worked in excess of 40 
hours per week shall be compensated for at the rate of time and one- 
third. Emergency hours worked shall be reported monthly to the 
Code Authority provided for in Section 1 of Article VI. 

(a) Watchmen shall not work or be permitted to work more than 
56 hours per week, provided, however, that such employees shall have 
one day off in seven. 

Section 3 is amended in its entirety as follows : 

Section 3. No other employee, except outside sales persons, and 
those employed in a managerial capacity earning in excess of $35.00 
per week, shall be permitted to work in excess of 40 hours per week. 

Section 5. Delete "Administrator " in the last line of Section 5 
and substitute therefor " Board ". 

Article IV — Wages 

Add a new Section 7 as follows : 

Section 7. A person whose earning capacity is limited because of 
age or 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- 

(285) 



286 

nated by the United States Department of Labor a certificate author- 
izing his employment at such wages and for such hours as shall be 
stated in the certificate. Each employer shall file monthly with the 
Code Authority a list of all such persons employed by him, showing 
the wages paid to, and the maximum hours of work for such em- 
ployees. 

Article VI — Administration 

Section 1. Delete "Administrator " wherever it occurs in this Sec- 
tion and substitute therefor '' Board." Substitute a semi-colon for 
the period at the end of the third sentence of Section 1 and add the 
following : 

provided, however, that proposed amendments to the Code shall 
not be submitted to the Board until thej^ first have been referred to 
the Industry at a general meeting or by a mail vote. 

The Section as amended is as follows: 

Section 1. To further effectuate the policies of the National Indus- 
trial Recovery Act, a Code Authority is hereby set up to cooperate 
with the Board in tlie administration of this Code. Such Code Au- 
thority shall consist of not less than 8 nor more than 11 members, 8 
of whom shall be representatives of the Industrj^ elected by a fair 
method of selection to be approved b}' the Board, and 3 of whom 
without vote may be appointed by the Board. Such agency may 
present to the Board recommendations based on conditions in the 
Industry as they may develop which will tend to effectuate the opera- 
tion of the provisions of this Code and the policies of the National 
Industrial Recovery Act; provided, however, that proposed amend- 
ments to the Code shall not be submitted to the Board until they first 
have been referred to the Industry at a general meeting or by a mail 
vote. Such recommendations, when approved by the Board, shall 
have the same force and effect as any other provisions of this Code. 

Sections 2, 3 and 4. Delete "Administrator " wherever it occurs in 
these Sections and substitute therefor " Board ". 

Renumber existing Section 6 as Sect. on 12. 

Delete Sections 7, 8 and 9 and substitute the following new sections 
therefor : 

Section 6. Each member of the Industiy shall keep accurate and 
complete records of its transactions in the Industry whenever such 
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 Board. If the Code Authority or the Board 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 may be examined by an 
impartial agency, agreed upon between the Code Authority and such 
member, or, in the absence of agreement, appointed by the Board. 
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. 



287 

Section 7. In addition to information required to be submitted to 
the Code Authority, members of the Industry subject to this Code 
shall furnish such statistical information as the Board may deem 
necessary for the purposes recited in Section 3 (a) of the Act to 
such Federal and State agencies as the Board 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 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 Board. 

Section 8. It being found necessary, in order to support the ad- 
ministration of this Code and to maintain the standards of Fair 
Competition established 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 Board for the Board's approval, subject to 
such notice and opportunity to be heard as the Board may deem nec- 
essary, (1) an itemized budget of its estimated expenses for the 
foregoing purposes, and (2) an equitable basis upon which the funds 
necessary to support such budget shall be contributed by members of 
the Industry; 

(c) After such budget and basis of contribution have been ap- 
proved by the Board, 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 9. Each member of the Industr}^ 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 Board. 
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 beneiits of any of its voluntary activities 
or to make use of any emblem or insignia of the National Recoveiy 
Administration. 

Section 10. 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 
Board; and no subsequent budget shall contain any deficiency item 
or expenditures in excess of prior budget estimates except those 
which the Board shall have so approved. 

Section 11. Nothing contained in tliis Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent or employee 
of the Code Authority, nor shall any member of the Code Authority, 



288 

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. 

Article VII — Uniform Cost Accounting 

Delete Article VII and susbtitut^ therefor a new Article VII as 
follows : 

Article VII — Cost Finding and Destructive Price Cutting 

Section 1. 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 Board for review. If approved by the Board 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 con- 
tained shall be construed to permit the Code Authority, or 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. The standards of fair competition for the Industry 
with reference to price practices are declared to be as follows: 

(a) Wilful, destructive price cuttin^^ 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 quoted 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 five days af- 
ford an opportunity to the member quoting said price to answer such 
complaint and shall within fourteen days make a ruling or adjust- 
ment thereon. If such ruling is not concurred in by either party to 
the complaint, all papers shall be referred to the Research and Plan- 
ning Division of N. E. A. which shall render a report and recom- 
mendation thereon to the Board. 

(b) When no declared emergency exists as to any given product, 
there is to be no fixed minimum basis for prices. It is intended that 
sound cost estimating methods should be used and that consideration 
should be given to costs in the determination of pricing policies. 

(c) "Wlien an emergenc}^ exists as to any given product, sales below 
the stated minimum price of such product, in violation of Section 3 
hereof, is forbidden. 

Section 3. Emergency Provisions. — If the Board, after investiga- 
tion 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 con- 
ditions which tend to defeat the purposes of the Act; and (2) that 
the determination of the stated minimum price for a specified ])rod- 
uct 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 



289 

agency to investigate costs and to recommend to the Board a deter- 
mination of the stated minimum price of the product affected by the 
emergency and thereupon the Board may proceed to determine such 
stated minimum price. 

(a) When the Board 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 emer- 
gency and to effectuate the purposes of the National Industrial Re- 
covery Act, the Board shall publish such price. Thereafter, during 
such stated period, no member of the Industry shall sell such speci- 
fied products at a net realized price below said stated minimum 
price and any such sale shall be deemed destructive price cutting. 
From time to time, the Code Authority may recommend review or 
reconsideration or the Board may cause any determinations here- 
under to be reviewed or reconsidered and appropriate action taken. 

Article VIII is amended in its entirety as follows : 

Article VIII — Uniform Sales Contracts and Order Blanks 

Section 1. Every sales contract or order, excepting fabrics sold 
to automobile manufacturers, shall contain the following provisions : 

(a) Prices shall be F. O. B. Mill, which shall be understood as 
permitting free delivery by the manufacturer to common carriers 
and purchasers located in the Mill city. 

(b) In the event that the style, color, or other specifications nec- 
essary to filling the order are not specified therein, and the buyer 
shall decline to furnish such specifications at least ten days before the 
respective shipping dates, the seller may, at his option, complete the 
contract u]3on reasonable specifications. 

(c) All bills shall be payable at the seller's office or place of col- 
lection designated by the seller in par exchange or the equivalent 
legal tender of the United States, on a net basis in seventy (70) days 
from date of shipment; if paid within ten (10) days from date of 
shipment, a maximum cash discount of two percent may be allowed. 
If the ten (10) days have elapsed, the buyer shall pay net, but shall 
have the privilege of anticipating at the rate of six percent per 
annum, for the unexpired portion of the seventy (70) day period. 
On all over-due bills, the buyer shall pay interest at the rate of six 
percent per annum. 

(d) Seller or seller's agent shall have the right, at any time, on 
any unfilled portion of this contract, to limit any credit to be ex- 
tended hereunder or to require payment before delivery, provided, 
always, that proper adjustment of discount or allowance of antici- 
pation for such prepayment, be made. 

(e) When agreed delivery period covers more than thirty (30) 
days, deliveries shall be in substantially equal quantities for each 
thirty (30) days unless otherwise specified. 

(f ) Deliveries within ten (10) days after time specified shall con- 
stitute a good delivery. 

(g) Title shall pass from seller to buyer when invoice has been 
rendered and the relative goods accepted by a railroad or other 
common carrier, subject to the right of the buyer to specify such 
carrier, or stored on premises of the seller for the account of the 
buyer and subject to his order. 



290 

(h) This contract is subject to delays for non-delivery due to 
strikes, lock-outs, fires, Acts of God or other causes beyond seller's 
control making delivery impossible. For such non-delivery the buyer 
shall have the right to cancel, by giving written notice to seller, any 
part of this contract, past due and undelivered by reason of such 
cause ; seller shall have the same right, provided notice of such cur- 
tailment is mailed to buyer not later than five (5) days after any 
delivery, hereunder, is interrupted thereby. 

(i) Upon the resumption of normal production, seller shall de- 
clare to buyer new delivery dates for any part hereof, then past due ; 
five days after recipt of such declaration, the rights to cancel, pro- 
vided above, shall expire and the delivery schedules, thus amended, 
shall become valid under this contract. 

(j) Retunis or claims must be made within thirty (30) days of 
the receipt of the goods, except for defects in material and/or work- 
manship and then only if the material has not been processed beyond 
the form in which it was delivered to the buyer. 

(k) It is agreed that the seller in accordance with the Code of 
Fair ComiDetition for the Upholstery and Drapery Textile Industry 
cannot except the return of merchandise sold and delivered in due 
accordance and compliance with this contract or accept or permit 
any cancellation or modification as to price or terms in connection 
with merchandise not yet delivered, except as provided herein, pro- 
vided, however, that adjustment may be made as found necessary on 
account of depreciation of buyer's credit. 

(1) Any delivery not in dispute shall be paid for regardless of 
controversies relating to other delivered or undelivered merchandise 

(m) Any controversy' or claim arising out of or relating to this 
contract or the breach thereof, sliall be settled by arbitration, in 
accordance with the Rules, then obtaining, of the American Arbitra- 
tion Association, and judgment upon the award rendered may be 
entered in the highest court of the forum, state or federal having 
jurisdiction ; provided this provision for arbitration shall not have 
been deleted b}' the purchaser upon, or prior to, the execution of 
this contract. 

(n) The use of this contract shall not be required on orders 
amounting to less than one thousand dollars ($1,000.00) or for 
deliveries made in less than thirty (30) days. 

Article IX — Unfair Trade Practices 

Delete existing Section 5 and substitute therefor a new Section 5 
as follows: 

Section 5. Samples. — Giving samples of fabrics free of cost ex- 
cept that sample cuttings not larger than 6" x 9'' may be sent for 
selection, free of charge; provided, however, that no more than 
six of any color or pattern shall be given to any customer in 
one season; and ])rovided further, that larger bona fide samples 
may be sent on memorandum to be returned within thirty (30) 
days and if not so returned, to be billed at the regular price. No 
allowance or discount other than cash discount for merchandise 
sold is allowed for samples to be used in sample books. 



291 

Section 6. Delete "Administrator " in the first and second sen- 
tences substituting therefor " Board ". 

Delete Section 7. 

Add a new Section 7 as follows: 

Section 7. Invoicing. — No member of the Industry shall withhold 
from or insert in any invoice any statement which would make the 
invoice inaccurate in any material particular or a false record, wholly 
or in part of the transaction to which it refers; nor make any 
arrangement which contemplates payment or settlement different 
from that described on the face of the invoice. 

Article X 

Section 6. Delete "Administrator " in the second line and sub- 
stitute therefor " Board ". Delete " his " in the fifth line and sub- 
stitute therefor " the Board's ". Delete " he " in the fifth line and 
substitute therefor " the Board ". 

Section 10. Standards of Safety and Health. — Every employer 
shall make reasonable provision for the safety and health of his 
employees at the place and during the hours of their employment. 
Standards of safety and health shall be submitted by the Code 
Authority to the Board for approval within six months after the 
effective date of this amendment. The standards approved shall 
thereafter be a part of this Code and enforceable as such. 

Approved Code No. 125 — Amendment No. 1. 
Registry No. 280^1-01. 



Approved Code No. 152 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CAN MANUFACTURERS INDUSTRY 
As Approved on February 8, 1935 



ORDER 



Approving Amendment of Code or Fair Competition for the 
Can Manufacturers 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 the Code of Fair Competition for the Can Manufacturers 
Industry, and an opportunity to be heard thereon having been duly 
noticed and the annexed report on said amendment, containing find- 
ings with respect thereto, having been made and directed to the 
President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise 
does hereby incorporate by reference said annexed report and does 
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 
does 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, provided 
Section 3 of Article III be amended by adding thereto the following : 
" Territories and possessions wage district — All other territories 
and possessions of the United States, to which the provisions here- 
inafter set forth as to the Hawaiian Wage District shall apply." 

And provided further, that the following be added under Section 
4 of Article VI, at the end of the first sentence : 

" In addition to the above information there shall be submitted to 
government agencies such statistical information as the Administra- 
tor may deem necessary for the purposes recited in Section 3 (a) of 
the National Industrial Recovery Act." 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
Kilbourne Johnston, 

Acting Division Administrat&r. 

Washington, D. C, 

February 8, 1936. 

(293) 



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 Can Manufacturers Industry to incorporate the 
principles contained in Executive Order No. G678 of April 14, 1934, 
relating to the expenses of Code Administration. This amendment 
was proposed in accordance with Article VIII of the Code as 
approved on December 15, 1933, and notice of opportunity to be 
heard was given from November 13 to December 4, 1934. 

FINDINGS 

The Deputy Administrator in his final report to us on said amend- 
ment to said Code having found as herein set forth and on the basis 
of all the proceedings in this matter : 

We 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 purposes 
of cooperative action among trade groups, by inducing and main- 
taining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of 
the present productive capacity of industries, by avoiding undue 
restriction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and 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 Code empowers the Board of Governors of the Code Au- 
thority to present the aforesaid amendment on behalf of the Industry 
as a whole. 

(d) The Code 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. 

(204) 



295 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to the approval of said 
amendment. 
For these reasons, therefore, this amendment has been approved. 
For the National Industrial Recovery Board: 

W. A. Harriman, 
AdTninistrative Ojficer. 
February 8, 1935. 



123726—35 10 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE CAN MANUFACTURERS INDUSTRY 

Delete Section 3 of Article VI. 

Delete Section 9 of Schedule B and insert the following provision 
as Section 3 of Article VI of the Code : 

Section 3. (A) It being found necessary in order to support the 
administration of this Code and to maintain the standards of fair 
competition established hereunder and to effectuate the policy of 
the Act, the Code Authority is authorized : 

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

(2) To submit to the National Industrial Recovery Board for its 
approval, subject to such notice and opportunity to be heard as it 
may deem necessary (a) an itemized budget of its estimated ex- 
penses for the foregoing purposes, and (b) an equitable basis upon 
which the funds necessary to support such budget shall be contrib- 
uted by Members of the Industry; 

(3) After such budget and basis of contribution have been ap- 
proved by the National Industrial Recovery Board, 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 expense of the maintenance of the Code Author- 
ity, determined as hereinabove provided, and subject to rules and 
regulations pertaining thereto issued by the National Industrial 
Recovery Board. 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 said con- 
tribution, 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. 

(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 
National Industrial Recovery Board ; and no subsequent budget shall 
contain any deficiency item for expenditures in excess of prior 
budget estimates except those which the National Industrial Recov- 
ery Board shall have so approved. 

Approved Code No. 152 — Amendment No. 1. 
Registry No. 1147-02. 

(296) 



Approved Code No. 126 — Amendment No. 4 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CHINAWARE AND PORCELAIN MANUFACTURING 

INDUSTRY 

As Approved on February 8, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Chinaware and Porcelain Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to the Code of Fair Competition for the Chinaware and Por- 
celain Manufacturing Industry, and hearings having been duly held 
thereon and the annexed report on said amendment, containing find- 
ings with respect thereto, having been made and directed to the 
President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate, 
by reference, said annexed report and does find that said amend- 
ment and the Code as constituted a iv being amended comply in all 
respects with the pertinent provisions and will promote the policy 
and purpose of said Title of said Act, and does hereby order that 
said amendment be and it is hereby approved, and that the previous 
approval of said Code is hereby amended to include an approval 
of said Code in its entirety as amended, such approval and such 
amendment to take effect ten (10) days from the date hereof, unless 
good cause to the contrary is shown to the National Industrial Re- 
covery Board before that time and the National Industrial Recovery 
Board issues a subsequent order to that effect. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative O^cer. 

Approval recommended : 
W. P. Ellis, 

Division Administrator. 

Washington, D. C, 

February 8, 1935. 

(297) 



REPOKT TO THE PRESIDENT 

The President, 

The White Home. 

Sir: A Public Hearing was held on November 1, 1934 on an 
Amendment to the Code of Fair Competition for the Chinaware and 
Porcelain Maniifacturin<^ Industry as submitted by the Code Au- 
thority for that Industry, in accordance with the provisions of the 
National Industrial Recovery Act. 

The Amendment provides for the inclusion of the words "or ojffer 
to sell, or make any quotation either verbal or written offering to- 
sell " in Article II, Section 1 (c) of this Code, which Article concerns 
open price filino;. The lack of these words has heretofore hampered 
compliance and the enforcement of this provision. 

The Deputy Administrator in his final report to us on said Amend- 
ment to said Code havino- found as herein set forth and on the basis 
of all the proceedinofs in this matter : 

We 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 floAv of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action of labor and management under 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 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provision of said Title of said Act, including without limitation 
sub-section (a) of Section 3, sub-section (a) of Section 7 and sub- 
section (b) of Section 10 thereof. 

(c) The 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 saidl 
Amendment. 

For these reasons, therefore, we have approved this Amendment. 
For the National Industrial Recovery Board. 

W. A. Harriman, 
A dministrative Ojficer. . 
February 8, 1935. 

(298) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE CHINA WARE AND PORCELAIN MANUFACTURING 
INDUSTRY 

Amend Article XI, Section 1 (c) by inserting between the words 
" sell " and " any " in the second line, the following : " or offer to 
sell or make any quotation, either verbal or written, offering to 
sell." 

Approved Code No. 126 — Amendment No, 4. 
Registry No. 1033-1-01. 

(299) 



Approved Code No. 94 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

GARTER, SUSPENDER AND BELT MANUFACTUR- 
ING INDUSTRY 

As Approved on February 8, 1935 



ORDER 



AppKO^^NG Amendment of Code of Fair Competition for the 
Garter, Suspender and Belt Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 1'6, 1933, for the approval of an amend- 
ment to a Code of Fair Competition for the Garter, Suspender and 
Belt Manufacturing Industry, and an opportunity to be heard having 
been afforded all interested parties and the annexed report on said 
amendment, containing findings v^ith respect thereto, having been 
made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate, by 
reference, said annexed report and does find that said amenclment and 
the Code as constituted after being amended comply in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said title of said act, and does hereby order that said amend- 
ment be and it is hereby approved, and that the previous approval 
of said Code is hereby modified to include an approval of said Code 
in its entirety as amended. 

National Industrial Recovery Board, 
W. A. Harriman, Administrative Officer. 

Approval recommended : 
Prentiss L. Coonley, 

Division Administrator. 

Washington, D. C, 

Fehruai-y 8, 1936. 

(301) 



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 Garter, Suspender and Belt Manufacturing 
Industry. 

Article V was amended by adding Section 6 which provides for 
limiting the liability of Code Authority members. 

An opportunity to be heard was afforded all interested parties 
and no objections have been received by the National Industrial 
Recovery Board. The National Industrial Recovery Board has 
also carefully considered the reports of the Industrial Advisory 
Board, Labor Advisory Board, Consumers' Advisory Board, 
Research and Planning Division and the Legal Division of the 
National Recovery Administration, which were made on this 
amendment. 

The Deputy Administrator in his final report to the National 
Industrial Recovery Board on said amendment to said Code, having 
found as herein set forth and on the basis of all the proceedings 
in tliis matter: 

It finds 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 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of Industries, b}^ 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 
pertinent 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 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. 

(302) 



303 

(e) The amendment and the Code, as amended, are not designed 
to and will not eliminate or oppress small industries 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 saidi 
amendment. 

For the above reasons, this amendment has been approved. 

For the National Industrial Kecovery Board : 

W. A. Haeriman, 
Administrative Officer, 

February 8, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
GARTER, SUSPENDER AND BELT MANUFACTURING 
INDUSTRY 

The following is to be added to Article V of the Code of Fair 
Competition for the Garter, Suspender and Belt Industry, to be 
designated Section 6: 

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

Approved Code No. 94 — Amendment No. 3. 
Registry No. 271-1-01. 

(3(M) 



Approved Code No. 41 — Amendment No. 3 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WOMEN'S BELT INDUSTRY 

As Approved on February 8, 1935 



ORDEK 



Approving Amendment of Code of Fair Competition for the 
Women's Belt 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 Women's Belt Industry, 
and an 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 
President. 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate, 
by reference, said annexed report and does find that said amendment 
and the 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 does hereby order that said 
amendment be and it is hereby approved, and that the previous ap- 
proval of said Code is hereby modified to include an approval of 
said Code in its entirety. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative OfflceT. 

Approval recommended: 
Prentiss L. Coonley, 

Division Administroior. 

Washington, D. C, 

February 8, 1935. 

(305) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

SiE : This is a report on an amendment to the Code of Fair Compe- 
tition for the Women's Belt Industry. 

Article VI was amended by adding Section E which provides for 
the limitins: of the liability of Code Authority members. 

An opportunity to be heard was afforded all interested parties 
and no objections have been received by the National Industrial 
Recovery Board. The National Industrial Recovery Board has 
also carefully considered the reports of the Industrial Advisory 
Board, Labor Advisory Board, Consumers' Advisory Board, Re- 
search and Planning Division and the Legal Division of the National 
Recovery Administration, which were made on this amendment. 

The Deputy Administrator in his final report to the National 
Industrial Recovery Board on said amendment to said Code, having 
found as herein set forth and on the basis of all the proceedings in 
this matter: 

It finds 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 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
jDresent productive capacity of Industries, b}^ 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 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 Avill 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 industries and will not 
operate to discriminate against them. 

(30G) 



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

For the above reasons, this amendment has been approved. 
For the National Industrial Recovery Board: 

W. A. Harjriman, 
Administratwe Officer. 
February 8, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE WOMEN'S BELT INDUSTRY 

The following is to be added to Article VI of the Code of Fair 
Competition for the Women's Belt Industry, to be designated as 
Section E: 

Nothing contained in this Code shall constitute the members of 
the Code Authority partners for any purpose. Nor shall any mem- 
ber of the Code Authority be liable in any manner to anyone for any 
act of another member, firm, agent or employee of the Code Author- 
ity. Nor shall any member of the Code Authority, exercising rea- 
sonable 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, misfeasance or nonfeasance. 

Approved Code No. 41 — Amendment No. 3. 
Registry No. 902-1-01. 

(308) 



Approved Code No. 126 — Amendment No. 5 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CHINAWARE AND PORCELAIN MANUFACTURING 

INDUSTRY 

As Approved on February 11, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Chinaware and Porcelain Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to the Code of Fair Competition for the Chinaware and Porce- 
lain Manufacturing Industry, and hearings having been duly held 
thereon 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate, by 
reference, said annexed report and does 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 does hereby order that 
said amendment be and it is hereby approved, and that the previous 
approval of said Code is hereby amended to include an approval of 
said Code in its entirety as amended, such approval and such amend- 
ment to take effect ten (10) days from the date hereof, unless good 
cause to the contrary is shown to the National Industrial Recovery 
Board before that time and the National Industrial Recovery Board 
issues a subsequent order to that effect. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Ofjlcer. 

Approval recommended : 

W. P. Ellis, 

Division Adtninistrator. 

Washington, D. C, 

Febmary 11, 1935. 

(300) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : A Public Hearing was held in Washington, D. C. on Novem- 
ber 1, 1934 on an amendment to the Code of Fair Competition for 
the Chinaware and Porcelain Manufacturing Industry as submitted 
by the Code Authority for that industry and on an amendment 
proposed by the National Recovery Administration. 

The amendment proposed by the Code Authority did not have the 
backing of a sufficient majority of the members of the industry to 
merit approval at this time. In view of this fact it was deemed 
advisable to proceed with the approval of the amendment contained 
in Schedule " B " of the Notice of Hearing and to which the Code 
Authority has assented. 

The amendment proposed by the National Recovery Administra- 
tion is designed to bring certain provisions of the Code into con- 
formity with approved policy and terminology. The amendment 
provides for handicapped workers, standards of safety and health, 
hazardous occupations, supersedancc of state and Federal Laws, the 
posting of labor provisions, dismissal of employees for complaint of 
code violation, the collection of reports and statistics, the right of 
the National Industrial Recovery Board to suspend unfair actions 
of the Code Authority, conferring upon the Code Authority the right 
to propose amendments, false billing and commercial bribery. 

The Deputy Administrator in his final report to us on said amend- 
ment to said Code having found as herein set forth and on the basis 
of all proceedings in this matter : 

We find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of 
the present productive capacity of industries, by avoiding undue 
restriction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provision of said Title of said Act, including without limita- 

(310) 



311 

tioii 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, we have approved this amendment. 

For the National Industrial Recovery Board: 

W. A. Harriman, 
Administrative Officer. 

February 11, 1935. 



123726—35 11 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE CHINAWARE AND PORCELAIN MANUFACTURING 
INDUSTRY 

1. Amend Article II, Section (c) by adding at the end of the 
paragraph the %Yords " except a member of the Industry." 

2. Delete Article II, Section (e) and substitute therefor: 
Section (e). The term '' member of the industry " as used herein 

includes, but without limitation, any individual, partnership, as- 
sociation, corporation, or other form of enterprise engaged in the 
industry, either as an employer or on his or its own behalf. 

3. Delete Article II, Section (f) and substitute therefor: 
Section (f). The terms "President", ''Act" and "National In- 
dustrial Recovery Board " as used herein mean respectively the 
President of the United States, Title I of the National Industrial 
Recovery Act, and the National Industrial Recovery Board. 

4. Delete the word "Administrator " wherever used in the Code 
and insert in lieu thereof '" National Industrial Recovery Board " 
together Avith the appropriate pronoun. 

5. Amend Article IV, Section (a) by inserting the word "sub- 
stantially " between the words " do " and " the " in the fourth line. 

6. Add a new Section (f) to Article IV as follows: 

Section (f). A person whose earning capacity is limited because 
of age or physical or mental handicap or other infirmity may be 
employed on light work at a wage below the minimum established 
by this Code if the employer obtains from the State Authority des- 
ignated by the United States Department of Labor a certificate 
authorizing his employment at such wages and for such hours as 
shall be stated in the certificate. Each employer shall file monthly 
with the Code Authority a list of all such persons employed by 
him, showing the wages paid to, and the maximum hours of work 
for such employees. 

7. Add a new Section (g) to Article IV as follows: 

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

8. Amend Article V by deleting Section 1 and substitute therefor : 
1. No person under sixteen (16) years of age shall be employed 

in the Industry in any capacity. No person under eighteen (18) 
years of age shall be employed in the Industry at operations or oc- 
cupations hazardous in nature or dangerous to health. 

The Code Authority shall submit to the National Industry Recov- 
ery Board within sixty (60) days a list of such operations or oc- 
cupations. In any state any employer shall be deemed to have 
complied with this provision as to age if he shall have on file a 
certificate or permit, duly signed by the Authority in such state 

(312) 



313 

empowered to issue employment or age certificates or permits show- 
ing that the employee is of the required age. 

9. Amend Article V by deleting Section 5 and substituting there- 
for: 

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

10. Amend Article V by deleting Section 7 and substituting there- 
for: 

7. All employers shall post and keep posted copies of this Cod© 
in conspicuous places accessible to all employees. Everj^ member 
of the industry shall comply with all rules and regulations rela- 
tive to the posting of provisions of Codes of Fair Competition which 
may from time to time be prescribed by the National Industrial 
Recovery Board. 

11. Add a new Section 10 to Article V as follows: 

10. 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 National Industrial Recovery Board within ninety 
(90) days after the effective date of this amendment. 

12. Add a new Section 11 to Article V as follows: 

11. No employer shall dismiss or demote any employee for making 
a complaint or giving evidence with respect to an alleged violation 
of tlie provisiuns of this Code. 

13. Amend Article VI by deleting opening paragraph of Section 

2 anfl Subsection 2 (a) and substituting therefor: 

2. Subject to such rules and regulations as may be issued by the 
National Industrial Recovery Board, the Code Authority shall have 
the following powers and duties, in addition to those authorized 
by other provisions of this Code: 

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

(b) To obtain from members of the Industry such information 
and reports as are required for the administration of the Code. All 
information and reports of a confidential nature shall be filed with a 
confidential and disinterested agent to be named by the Code Au- 
thority, subject to the approval of the National Industrial Recovery 
Board. In addition to information required to be submitted to the 
Code Authority, members of the industry subject to this Code shall 
furnish such statistical information as the National Industrial Re- 
covery Board may deem necessary for the purposes recited in Section 

3 (a) of the Act to such Federal and State agencies as it may desig- 
nate: provided that nothing in this Code shall relieve any member 
of the industry of any existing obligations to furnish reports to any 
Government agency. No individual report shall be disclosed to any 
other member of the industry or any other party except to such 
other Governmental agencies as may be directed by the National 
Industrial Recovery Board. 

14. Change designation of Section 2 (b) to Section 2 (d). 



314 

15. Add a new Sub-section (e) to Article VI, Section 2 as follows: 
(e) The Code Authority shall have the power to consider proposals 

for modifications and amendments to tliis Code and niake recom- 
mendations thereon from time to time to t!ie National Industrial 
Recover}' Board, which modifications or amendments shall become 
effective as part of this Code, upon approval by the National Indus- 
trial Recovery Board after such notice and hearinu' as it may specify. 

16. Delete Section 4 of Article VI and substitute therefor: 

4. If the National Industrial Recovery Board shall at any time 
determine that any action of the Code Authority or any agency 
thereof may be unfair or unjust or contrary to public interest, the 
National Industrial Recovery Board may require that such action 
be suspended to ali'ord an opj)ortunity for investioation of tlie merits 
of such action and further consideration by such Code Authority 
or airency pendin<!; final action which shall not be effective unless 
the National Industrial Recovery Board approves ov unless it shall 
fail to disapprove after thirt}^ (30) days notice to it of intention to 
proceed with such action in its original or modified form. 

17. Amend Article VII by deleting Section 2 (b) and substituting 
;therefor : 

(b) No member of the industry shall knowingly withhold from or 
insert in any quotation or invoice any statement that makes it inac- 
curate in any material particular. 

18. Amend Article VII by deleting Section 2 (k) and substituting 
therefor : 

(k) 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 l)usiness 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 ])rohibit free and general distribution of 
articles couunonly used for advertising except so far as such articles 
.are actually used for commercial bribery as hereinabove defined. 

Approved Code No. 126 — Amendment No. 5. 
Begistry No. 1033-1-01. 



Approved Code No. 48 — Amendment No. 5 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SILK TEXTILE INDUSTRY 

As Approved on February 11, 1935 



ORDER 



AppRO^^NG Amendment of 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 hearings have 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise ; 
does hereby incorporate, by reference, said annexed report and does 
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 
does liereb}' 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. 

National Industrial Recovery Board, 
By W. A. Harriman. Admiinistrative Oificer. 

Approval recommended : 
Prentiss L. Coonley. 

Acting Division Administrator. 

Washington, D. C. 

Februai^ 11^ 1935. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the Hearin<r covering the Amendment to 
the Code of Fair Competition for the Silk Textile Industry, held in 
the Fairfax Room at the Willard Hotel. Washinirton. D. C, Novem- 
ber 7. 19;U. The Amendment, which is attached, was presented by 
duly qualified aiid autiiorizcd representatives of the Industry, com- 
plyinfr with statutory requirements and being- the same Agency that 
originally submitted the Code. 

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

rilOVISIOXS OF THE AMENDMENT 

Thei-e are 4 Amendments as follows : 

1. An Amendment |)rohibiting commei'cial bribery. 

2. An Amendment defining duly accredited factors and/or author- 
ized selling agents. 

3. An Amendment providing for open price filing for the Sewing 
Thread and Floss Division of the Industry. 

4. An Amendment regarding terms of sale of woven labels. 

FINDINGS 

The Deputy Administrator in his final rej^ort to the National In- 
dustrial Recovery Board on said amendment to said Code having 
found as herein set forth and on the basis of all the proceedings in 
this matter: 

It finds that : 

(a) The amendment to said Code ajid 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 w^ill provide for the general 
welfare by promoting the organization of industry for the purpose of 
cooperative action among trade groups, by inducing and nuiintaining 
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 in- 
creasing purchasing power, by reducing and relieving unemploy- 
ment, by improving the standards of labor, and by otherwise rehabili- 
tating industry. 

(316) 



317 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendment on behalf of the industry as a whole. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons this amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Ojjicer. 
February 11, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE SILK TEXTILE INDUSTRY 

Article VIII is amerided by the addition of a new section, section 
11, to read as follows : 

1. No employer shall give, permit to be given, or offer to give, 
an5^thing of value for the purpose of influencing or rewarding the 
action of an}' cmploj-eo, 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 employer, principal or party. This provision shall not be con- 
strued to prohibit free and general distribution of articles com- 
monly used for advertising except so far as such articles are actually 
used for commercial bribery as hereinabove defined. 

Article XI, Ribbons, is hereby amended by the addition of a new 
provision to read as follows : 

The Avords '" duly accredited factors and/or authorized selling 
agents " as used herein in relation to ribbon manufacturers, are 
defined to mean individuals or concerns who sell merchandise 
shipped to them on consignment or memorandum by manufacturers 
for sale in the name of such manufacturers or factors or selling 
agents pursuant to a written agency agreement. All ribbon manu- 
facturers who sell through dul}^ accredited factors and/or author- 
ized selling agents shall enter into written agency agreements with 
said factors and/or selling agents and said written agency agree- 
ments shall contain the following provisions and specifications : 

(1) The manufacturer shall specify that the selling agent shall 
sell merchandise shipped to him on consignment or memorandum at 
prices not less than those determined by the manufacturer. 

(2) The manufactur(>r shall set forth in said agreement the com- 
missions to be ))aid the selling agent. 

(3) The manufacturer shall specify that duplicates of each in- 
voice giving full details of all sales, exclusive of the names of the 
purchasers, shall be submitted to him monthly. 

(4) The manufacturer shall specify in said agreement that net 
proceeds of sales less commissions and other deductions set forth 
shall be remitt^nl to the manufacturer. 

(5) The manufacturer shall set forth in said agreement that recon- 
signment of merchandise ship])ed to a selling agent is ])rohibited 
except reconsignment to another registered selling agent with the 
consent of the manufacturer. 

(6) The manufacturer shall set forth in said agreement that duly 
accredited factors and/or authorized selling agents cannot sell to 
themselves. 

Article XI, Sewing Threads and Flosses, is hereby amended by 
the addition of a new provision to read as follows: 

Section 1. Each member of the Sewing Thread and Floss Indus- 
try shall file with a confidential and disinterested agent of the Code 

(318) 



319 

Authority or, if none, then with such an agent designated by the 
National Industrial Recovery Board, identified lists of all of his 
prices, discounts, rebates, allowances, and all other terms or condi- 
tions of sale, hereinafter in this Article referred to as " price terms " 
which lists shall completely and accurately conform to and repre- 
sent the individual pricing practices of said member on his " pound 
goods ", as differentiated from " bulk " or " small goods." 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 fifteen (15) days after the date of approval of this 
provision. Price terms and revised price terms shall become effec- 
tive 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 mem- 
bers of the industry and to all of their customers who have applied 
therefore and have offered to defray the cost actually incurred by the 
Code Authority in the preparation and distribution thereof and be 
available for inspection by any of their customers at the office of 
such agent. Said lists or revisions or any part thereof shall not be 
made available to any person until released to all members of the 
industry and their customers, as aforesaid; provided, that prices 
filed in the first instance shall not be released until the expiration of 
the aforesaid fifteen (15) day period after the approval of this pro- 
vision. 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 National Indus- 
trial Recovery Board. Upon request the Code Authority shall fur- 
nish to the National Industrial Recovery Board, or any duly desig- 
nated agent of the National Industrial Recovery Board 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 
l^roducts/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. 

Section 5. Each employer in his Division shall report on or before 
August 1st and February 1st of each year his total dollar sales to 
each customer for the preceding calendar half year. This informa- 
tion shall be held in strict confidence by the confidential agent and 
shall be used only as the basis for rendering the following reports. 



320 

On September 1st and March 1st of each year, the confidential 
agent shall establish the ratings of all buyers of this division of 
the industry on the basis of their purchases for each calendar half 
year. These ratings shall be on the basis of the present prevailing 
custom in the industry of rating trade buyers in five classes and job- 
bers in three classes. 

Upon written or telegraphic request, the confidential agent shall 
give members of the division the rating of any individual buyer. 

The confidential agent shall on September 1st and March 1st of 
each year advise each individual buyer of his individual rating in 
this division of the industry and shall advise each individual buyer 
of his own individual rating only, and the ratings of other buyers 
shall be kept confidential. 

The Code Authority shall have the right to order the confidential 
agent to check and/or correct any ratings upon request of any em- 
ployer in the division and/or buyer. 

The cost of compiling and distributing this information to mem- 
bers of the division and to all interested parties shall be borne pro- 
portionately by all members of the division desiring this service. 

The confidential agent shall be appointed by the Code Authority 
and approved by the National Industrial Recovery Board. The 
records of the confidential agent may be examined by a confidential 
agent of the National Industrial Recovery Board at any time. 

Article XI, Woven Labels, is hereby amended to read as follows : 

Each employer shall bill woven labels on date of shipment upon 
the terms of 2/10 e. o. m. 

Approved Code No. 48 — Amendment No. 5. 
Registry No. 263^1. 



Approved Code No. 242 — Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MARINE AUXILIARY MACHINERY INDUSTRY 

As Approved on February 12, 1935 



ORDER 



Approvixg Amendment of Code of Fair Competition for the 
Marine Auxiliary Machinery 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 Marine Auxiliary 
Machinery Industry, and opportunity to be heard having been 
noticed to all interested persons, and no objections thereto 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise, 
does hereby incorporate, by reference, said annexed report and does 
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 
does 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. 

National Industrial Recovery Board, 
By W. A. Harriman. Achninistratlve Officer. 

Approval recommended : 
Barton W. Murray, 

Division Adrtiinhtrator, 

Washington, D. C. 

February 12, 1935. 

(321) 



KEPOKT 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 ^larine Auxiliary Machinery Industry as approved 
on January 80, 1984. An opportunity to be heard was noticed to all 
interested persons in accordance with Title I of the National Indus- 
trial Recovery Act. No objections were filed. 

The amendment is designed to provide for the collection of code 
administration expenses from Members of the Industry in accordance 
-.with Executive Order No. G678, dated April 14, 1934."^ 

FINDINGS 

The DejDuty Administrator in his repent to the National Indus- 
trial Recoveiy Board on said amendment to said Code having found 
as herein set forth and on the basis of all the proceedings in this 
jnatter : 

It is found 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 laboi' 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 capacit}^ of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by in- 
creasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without 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 wliole. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not oper- 
ate to discriminate against them. 

(322) 



323 

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

For these reasons, therefore, this amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 
February 12, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
MARINE AUXILIARY MACHINERY INDUSTRY 

Delete Section :^3 of Article VI and substitute in lieu thereof the 
following : 

Sectiox 3. (a) It being found necessary in order to support the 
administration of this code and to maintain the standards of fair 
competition established hereunder and to effectuate the policy of 
the Act, the Code Authority is authorized : 

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

{'2) To submit to the National Industrial Recovery Board for its 
api^roval. subject to such notice and opportunity to be heard as it 
may deem necessary (1) an itemized budget of its estimated ex- 
penses for the foregoing purposes, and (2) an equitable basis upon 
which the funds necessary to support such budget shall be con- 
tributed by members of the industry : 

(3) After such budget and basis of contribution have been ap- 
proved by the National Industrial Recovery Board, 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 National Industrial Re- 
covery Board. Only memljers of the Industry complying with the 
code and contributing to the expenses of its administration as here- 
inabove provided, (unless duly exempted from making such con- 
tributions,) shall be entitled to participate in the selection of mem- 
bers 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 Auttiority 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 Na- 
tional Industrial Recovery Board; and no subsequent budget shall 
contain any deficiency item for expenditures in excess of prior budget 
estimates except those which the National Industrial Recovery 
Board shall have so approved. 

Approved Code No. 242 — Amendment No. 1. 
Registry No. lMO-01. 

(324) 



Approved Code No. 4B — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

PORTABLE ELECTRIC LAMP AND SHADE 
INDUSTRY 

As Approved on February 12, 1935 



ORDER 



Approving Amendment of Supplementary Code of Fair Competi- 
tion FOR THE Portable Electric Lamp and Shade Industry 

A division OF THE ELECTRICAL, 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 Portable Electric Lamp 
and Shade Industry, a Subdivision of the Electrical Manufacturing 
Industry, and hearing having been duly held thereon and the an- 
nexed report on said amendment, containing findings with respect 
thereto, having been made and directed to the President. 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recover}^ Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order number 6859, and otherwise, does hereby incor- 
porate, by reference, said annexed report and does find that said 
amendment and the Code as constituted after being amended com- 
ply in all respects with the pertinent provisions and will promote 
the policy and purposes of said Title of said Act, and does hereby 
order that said amendment be and it is hereby approved, and that 
the previous approval of said Code is hereby amended to include an 
approval of said Code in its entirety as amended, such approval and 
such amendment to take effect twenty days from the date hereof, un- 
less good cause to the contrary is shown to the National Industrial 
Recovery Board before that time and the National Industrial Re- 
covery Board issues a subsequent order to that effect; provided, 
however, that in order to enable members of the Subdivision to ad- 
just their methods of operation to comply with the provisions of 

(325) 



326 

Article XIV, " Homework '", said Article XIV shall become effective 
ninety (90) days from the date of this Order, 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
Barton W. Murray, 

Division Adtninistrator. 

Washington, D. C, 

February 12, 1935. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on an amendment to the Supplementary Code 
of Fair Competition for the Portable Electric Lamp and Shade In- 
dustry, a Subdivision of the Electrical Manufacturing Industry, 
Public Hearing having been conducted thereon in Washington, D. C, 
October 11, 1934, in accordance with the provisions of Title I of 
the National Industrial Recovery Act. Every person who filed 
a request for an appearance at the Public Hearing was heard in 
accordance with regulations of the National Recovery Administra- 
tion, and all objections filed have been given due consideration. The 
amendment, which is attached, was presented with the approval of 
the Basic Code Authority. 

The Supplementary Code is amended to incorporate additional 
fair trade practice provisions, the need of which has been demon- 
strated by practical experience under the Supplementary Code. 

FINDINGS 

The Deputy Administrator in his final report to the National 
Industrial Recovery Board on said amendment to said Supplementary 
Code having found as herein set forth and on the basis of all the 
proceedings in this matter : 

It is found that : 

(a) The amendment to said Supplementary Code and the Supple- 
mentary 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 organiza- 
tion of industry for the purpose of cooperative action among trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanction and supervision, 
by eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue 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 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. 

123726—35 12 (327) 



328 

(c) The amendnient and the Supplementary Code as amended are 
not designed to and will not permit monopolies or monopolistic 
practices. 

(d) 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. 

(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, this amendment has been approved, 
the approval to become effective twenty (20) days from date of the 
Order, and with the provision that Article XIV shall become effec- 
tive ninety (90) days from date of said Order. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Ojflcer. 
February 12, 1935. 



AMENDMENT TO SUPPLEMENTAKY CODE OF FAIR 
COMPETITION FOR THE PORTABLE ELECTRIC LAMP 
AND SHADE INDUSTRY 

A DIVISION OF THE ELECTRICAL MANUFACTURING INDUSTRY 

Amend the Code by adding the following Articles : 
Article VIII — Consignment 

No employer shall ship or place on consignment products of this 
Subdivision except under circumstances approved by the Super- 
visory Agency and subject to review by the National Industrial 
Recovery Board. 

Article IX — Ad\tertising Allowances 

No employer shall designate as an " advertising allowance ", a 
'' promotion allowance ", or by a similar term, any price reduction, 
discount, bonus, rebate, concession, or other form of allowance, or 
any consideration for advertising or promotion services, otfered or 
given by him to any customer. 

No employer shall offer or give any consideration merely for 
'• pushing ", *' advertising ", or otherwise than for definite and speci- 
fic advertising or promotion services. Such consideration shall be 
given only pursuant to a separate written contract therefor, which 
contract shall specifically and completely set forth the advertising 
or promotion services (in such manner that their specific character 
may be understood by other employers and their customers) to be 
performed by the recipient of said consideration, the precise con- 
sideration to be paid or given therefor by said employer, the method 
of determining performances, and all other terms and conditions 
relating thereto. 

Ahticle X — Returned Merchandise 

No emplo^'er shall accept the return of any product of this Sub- 
division except when such product is defective or does not meet 
performance requirements or specifications. However, when the pur- 
chaser is unable to meet his obligations, the employer may accept the 
return of products of this Subdivision, provided that immediate 
report thereof is made to the Supervisory Agency. 

Article XI — Identifying Merchandise 

Each employer of this Subdivision shall identify the products of 
his manufacture in a manner to be determined by the Supervisory 
Agency, subject to the approval of the National Industrial Recovery 
Board. 

Article XII — Terms of Payment 

No employer shall sell the products of this Subdivision on any 
more favorable terms of payment than that of " payment within 

(329) 



330 

thirty days of date of invoice " or a maximum 2% cash discount 
when payment has been made within ten days of the date of invoice 
All products shall be sold F. O. B. city of manufacture. 

Article XIII — Standards Committee 

1. The Supervisory Agency shall establish a standards committee, 
which shall be fairly representative of the Subdivision and two mem- 
bers of which shall be appointed by the National Industrial Recov- 
ery Board, such members to serve without expense to the Industry. 

2. The Committee shall study and recommend to the Supervisory 
Agency and the National Industrial Recovery Board such standards 
as are deemed feasible. 

3. Following such review as the National Industrial Recovery 
Board may determine, such standards as are adopted shall be made 
mandatory upon the Subdivision as a part of this code, and non-com- 
pliance therewith shall be an unfair method of competition, and a 
violation of the Supplementary Code; provided that nothing herein 
shall forbid the manufacture and sale of non-standard products 
which are clearly identified to the buyer as such. 

Article XIV ^ — Homework 

No employer shall manufacture or cause to have manufactured in 
whole or in part any of the products of this Subdivision in the home, 
premises or living quarters of any person, provided, however, 

(1) A person may be permitted to engage in home work at the 
same rate of Avages as is paid for the same type of work performed 
in the factory or other regular place of business if a certificate is 
obtained from the State Authority or other officer designated by the 
United States Department of Labor, such certificate to be granted 
in accordance with instructions issued by the United States Depart- 
ment 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 serv- 
ices are absolutely essential for attendance on a person who is bed- 
ridden or an invalid and both such persons are free from any con- 
tagious disease. 

(c) Any employer engaging such a person shall keep such certifi- 
cate on file and shall file with the Supervisory Agency the name and 
address of each worker so certificated. 

Article XV — Subterfuge 

No employer of this Subdivision shall engage in any subterfuge 
so as to defeat the purposes or provisions of the Act or of this Code. 

Approved Code No. 4P. — AmendiiHMit No. 1. 
Registry No. 130.S-16. 



^ See paragraph 2 of order approviii^; tliis Amendment. 



Approved Code No. 445 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BAKING INDUSTRY 

As Approved on February 13, 1935 



ORDER 



Approving Aihexdment or Code of Fair Competition for the 
Baking 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 Baking Industry, and 
an oi^portunity to be heard having been duly afforded 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including Ex- 
ecutive Order No. 6859, and otherwise, does hereby incorporate bj' 
reference said annexed report and does find that said Amendment 
and the 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 does hereby order that said 
Amendment be and it is hereby approved, and that the previous ap- 
proval of said Code is hereby modified to include an approval of 
said Code in its entirety as amended. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative 0-fficer. 

Approval recommended: 
Armin W. Riley, 

Division Administrator. 

Washington, D. C, 

February 13, 1935. 

(331) 



REPORT TO THE PRESIDENT 

The Presidext, 

The AYhite House. 

Sir: This is a report on an Amendment to Article VII. Sections 
12 and 13 of the Approved Code of Fair Competition for the Baking 
Industr}'' No. 445. This Code was approved by you on Mav 28, 
1934. 

The Code Authority for the Baking Industry, in accordance with 
Article VI. Section 3, and Article IX. Section 1, Subsection (b) of 
said Code, having found it necessary, in order to sup})ort the ad- 
ministrati<)n of this Code and to maintain the standards of fair 
competition, h:ive i)etitioned the National Industrial Recovery Board 
to amend Article VII. Sections 12 and 13 of the Code which im- 
poses an undue hardship uijon the members of the 'ndustry. 

Article VII, Section 12 of the Code of Fair Competition for the 
Baking Industry controls the sale of fresh and stale returns by all 
members of the industry with the excei)tion of the independent dis- 
tributor, who is not a manufaciurtr or bakery products and is 
commonly known in the industry as a '* bob-tailer." It is essential 
that returns resulting from the sale of bakery products through an 
independent distributor be controlled in a fair and just manner. 

The wholesale bread bakers of the industry can sell returns only 
at the point of manufacture; retail bakers, specialty bakers, and 
chain store bakers can only sell their returns at the jxiint of manu- 
facture and/or at points where orig nally offered for sale. The 
multiple unit baker can sell his returns at the point of manufacture 
and/or at ]ilaiiily identified special outlets devoted exclusively to 
the sale of such products, meaning stale stores. The number of stale 
stores is controlled by the Code. The house-to-house baker can dis- 
pose of his returns at the point of manufacture and/or at plainly 
identified outlets devoted exclus vely to the sale of sucii i)roducts. 

Tlie Code of Fair Competiti(m for the Baking Industry in its 
present form, jjermits the independent d stributor. conmioniy known 
in the industry as a " bo')-tailer "' to dispose of his fresh and/or •^tale 
returns in any manner in which he sees fit, with no restrictions. This 
permitted practice is very unfair to the various divisioiis of the indus- 
try who are compelled by the Code to use certain s})ecified methods 
and limited number of outlet- to di>«i)ose of their reuirned bakery 
products. 

One can understiuid lu-w ca^-y it would be for an independent dis- 
tributor to take advantage of the sniuil retail bakery or other mem- 
bers of the industry by disposing of h s products in an unfair manner. 

Therefore, it is essentinl that Article VIT. Section lii be amended, 
by adding thereto sub-section (h). why. h will require the independent 
distributor to return his .-;tale and fre-h returns to the maimfucturer 
from whom lie purchased same, to be disjiosed of at tlie point of 
manufacture. 

(332) 



333 

The National Bakers' Council, Code Authority for the Baking 
Industry, has found through experience that it is necessary to have 
on file a complete list of independent distributors, such list to be used 
in checking, from time to time, the filing of prices as well as to assist 
in enforcing compliance with the other trade practice provisions to 
which such independent distributors are subject. 

It is often the practice of the independent distributor to purchase 
from a member of the industry bakery products and resell them either 
at wholesale or retail prices which are below the filed prices of the 
manufacturer. 

These amendments will assist the Code Authority in quickly put- 
ting a stop to the numerous unfair trade practices in which independ- 
ent distributors have heretofore participated. 

The Code of Fair Competition for the Baking Industry prohibits a 
meml)er of the industry from selling bakery products to an independ- 
ent distributor when such distributor does not comply with the pro- 
visions of the Code. Therefore, one can readily understand that 
considerable time will be saved and discontent avoided if the Code 
Authority has a list of the independent distributors to whom each 
member of the industry is selling bakery products. 

It may be summed up in this manner, a list of independent dis- 
tributors would allow the Code Authority to expedite adjustment of 
Code violations by independent distributors, and prevent, in many 
instances, the spreading of such violations to members of the indus- 
try who do not sell to independent distributors, but who meet their 
competition, hence the addition of subsection (a) to Section 13. 

The Deputy Administrator in his final report to the National 
Industrial Recovery Board on said Amendments to said Code having 
found as herein set forth and on the basis of all the proceedings in 
this matter : 

The National Industrial Recovery Board finds 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 of labor and management under adequate govern- 
mental sanction and supervision, 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 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 amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3. Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendment on behalf of the industry as a whole. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 



334 

(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 the Code as amended has been approved. 

For the National Industrial Kecovery Board : 

W. A. Harriman, 
Administrafive Officer. 

February 13. 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE BAKING INDUSTRY 

Amend Article VII, Section 12, by inserting the following : 
"Section 12, Sub-section (h). 'Returns' resulting from sale of 
bakery products through independent distributors — by reason of 
return or resale to said independent distributors by persons receiving 
or purchasing from said independent distributors — may be sold only 
at the place or places at which returns are legally sold by the manu- 
facturer of said products. 

Amend Article VII, Section 13, by inserting the following: 
'' Section 13 (a). Lists of Independent Distrihutots. — Each mem- 
ber of the Industry delivering or selling bakery products to an inde- 
pendent distributor, or independent distributors, shall file a com- 
plete list of such independent distributors with the National Bakers' 
Council, Code Authority for the Baking Industry, and shall prop- 
erly revise said list as occasion shall demand." 

Approved Code No. 4^.o — Amendment No. 4 
Registry No. 101-23. 



Approved Code No. 436 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FUR MANUFACTURING INDUSTRY 

As Approved on February 13, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the Fur 
Manufacturing Industry 

WHEREAS, a code of Fair Competition for the Fur Manufac- 
turing Industry was approved by the Administrator for Industrial 
Recovery on May 19, 1934, which provided in Article VI, Section 1, 
thereof, for the Code Authority to be selected as set forth therein ; 
and, 

WHEREAS, said Code of Fair Competition as approved con- 
tained in Article VI, Section 3, the following provision : 

" In order that the Code Authority shall at all times be truly 
representative of the Industry and in other respects comply with the 
provisions of the Act, the Administrator may prescribe such hear- 
ings as he may deem proper and may require an appropriate modifi- 
cation in the method of selection of the Code Authority ", and, 

WHEREAS, pursuant to the power reserved therein and other- 
wise, the Administrator for Industrial Recovery held certain hear- 
ings for the purpose of determining and/or for the purpose of 
adopting appropriate Amendments to Article VI, Sections 1, 2 and 
3 of said Code, whether said Code Authority (Section 1, Article VI) 
as constituted was truly representative of the Industiy, and whether 
and in what material respects said Code Authority (Section 1, Arti- 
cle VI) may not 'oe tending to effectuate the policy of Title I of the 
National Industrial Recovery Act and the provisions of said Code. 

WHEREAS, the National Industrial Recovery Board finds that 
said Section 1 of Article VI should be amended to provide for an 
additional member on the Code Authority for said Industry (to be 
designated by the Board of Directors of the American Fur Manu- 
facturers Association), and to permit the election of a Chairman 
for said Code Authority without affiliation with said Industry and 
without vote, and that said Industry members selected shall be sub- 
ject to the approval of and recognition by the National Industrial 
Recovery Board, and 

WHEREAS, the National Industrial Recovery Board has made 
further provisions in Section 3, whereby it shall have the right to 

(337) 



338 

withdraw its approval and recognition of any member chosen under 
the provision of Section 1 of this Article for cause. 

NOAV. THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order #6859, dated September 27, 1934, and otherwise, 
does hereby incorporate by reference, said annexed report and find- 
ings, and does find that said Amendments and the Code as consti- 
tuted after being amended comply in all respects with the pertinent 
provisions and will promote the policy and purposes of said Title I 
of said Act. and does hereby order that said Amendments be and 
they are hereby approved, and that the previous approval of said 
Code is hereby amended to include an approval of said Code in its 
entirety as amended, such approval and such amendments to take 
effect twenty days from the date hereof, unless good cause to the 
contrary is shown to the National Industrial Recovery Board before 
that time and the National Industrial Recovery Board issues a 
subse(iuent c>i; ■( r to that affect. 

National Industrial Recovery Board, 
By Wi A. Habriman, Adviinistrative Q-fficer. 

Approval recommended : 
Prentiss L. Coonley. 

Division A dmin ifstrator, 
Washington, D. C, 

Fehimary 13^ 1935. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on the Ameiidments to the Code of Fair 
Competition for the Fur ]Maniifacturing Industr5^ and on the hear- 
ing- conducted thereon in Washington. D. C, August 24, 1934, 

GENERAL STATEMENT 

Tlie Code, under Article VI. Section 3, provides as foUows : 
'• In order that the Code Authority shall at all times be truly repre- 
.^-entative of the Industry and in other respects comply with the 
provisions of the Act, the Administrator may prescribe such hearings 
as he ma}- deem proper, and may require an appropriate modification 
in the method of selection of the Code Authority." 

In accordance with this provision, on August 11, 1934, a hearing 
was called for August 24, 1934. Based upon the evidence presented 
at this hearing, together with the preceding evidence which dated 
back prior to the formulation of the Code, two Amendments are 
submitted : 

RESUME OF AMENDMENTS 

1. To the first paragraph of Section 1 has been added a clause 
making the selection of the Code Authority members subject to the 
approval of and recognition by the National Industrial Recovery 
Board. 

2. The insertion into the Code of a new Sub-section (e) of Section 
1 of Article VI. which provides for representation on the Code Au- 
thority by the American Fur Manufacturers' Association. 

3. The substitution in Section 2 of Article VI of National Indus- 
trial Recovery Board for Administrator. 

4. A new Sub-section (i) is added to Section 1 of Article VI, which 
provides for the election of a Chairman, either within the Industry 
or outside the Industry, but without vote. This was done in order 
to eliminate a feeling that a Chairman elected from among the Mem- 
bers of the Board might be prejudiced in his attitude. Therefore, 
an opportunity is given to elect a Chairman from outside the Indus- 
try who would be acceptable to the majority of the Members of the 
Board. 

5. The addition of a new Sub-section to Section 3 which gives the 
National Industrial Recovery Board power to withdraw its approval 
or recognition of any member of the Code Authority for cause. 

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

(339) 



340 

The National Industrial Recovery Board finds that : 

(a) The Amendments to the said Code and the Code as amended 
are well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act, including the removal of 
obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof, and will provide for the 
general welfare by promoting the organization of industry for the 
purpose of cooperative action among trade groups, by inducing and 
maintaining united action of labor and management under ade- 
quate governmental sanction and supervision, by eliminating unfair 
competitive practices, by promoting the fullest possible utilization 
of the present productive capacity of the industries, by avoiding un- 
due restrictions of production (except as may be temporarily re- 
quired), by increasing the consumption of industrial and agricultural 
products through increasing purcnasing power, by reducing and re- 
lieving 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 National Industrial Recovery Board 
to present the aforementioned 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 Avill not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 
February 13, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE FUR MANUFACTURING INDUSTRY 

1. To amend Article VI, Sections 1, 2, and 3 of the Code of Fair 
Competition for the Fur Manufacturing Industry by substituting 
the following: 

Article VI 

1. A Code Authority is hereby constituted to cooperate with the 
National Industrial Recovery Board in the administration of this 
Code. The Industry members of said Code Authority shall be se- 
lected as hereinafter set forth, subject to the approval of and recog- 
nition b}^ the National Industrial Recovery Board : 

(a) Two (2) members of the Industry to be designated by the 
Board of Directors of the Associated Fur Coat and Trimming Manu- 
facturers, Incorporated. 

(b) Two (2) members of the Industry to be designated by the 
Board of Directors of the New York Fur Trimming Manufacturers 
Association. 

(c) Two (2) members of the Industry to be designated by the 
Board of Directors of the United Fur Manufacturers Association, 
Incorporated. 

(d) One (1) member of the Industry to be designated by the 
Board of Directors of the Chicago Fur Trimming Manufacturers 
Association. 

(e) One (1) member of the Industry to be designated by the 
Board of Directors of the American Fur Manufacturers Association. 

(f) One (1) member of the Industry shall be elected by the mem- 
bers of the Industry unaffiliated with any of the Associations herein- 
above enumerated, and located in Area "A" as defined in Section 6 
(a) of Article IV of this Code. Said election shall be conducted 
under the supervision of the National Industrial Recovery Board or 
its authorized representative. 

(g) One (1) member of the Industry shall be elected by mem- 
bers of the Industry unaffiliated with any of the Associations herein- 
above enumerated, and lo 'ated in any other part of the United 
States outside of Area ''A" as defined in Section 6 (a) of Article IV 
of this Code. Said election shall be conducted under the supervision 
of the National Industrial Recovery Board or its authorized 
representative. 

(h) Three (3) Administration Members without vote may be 
appointed by the National Industrial Recovery Board, two of which 
may be appointed upon the nomination of the Labor Advisorj^ Board 
of the National Recovery Adminstration. 

(i) The Code Authority, in its discretion, may elect as Chairman 
one of its members or any ])erson not a member of the Industry, and 
in the latter case the Chairman shall be without vote. 

(341) 



342 

2. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
niit to the Xational Industrial Recovery Board true copies of its 
articles of association, by-laws, regulations, and any amendments 
Avhen made thereto, together with such other information as to 
luembership, organization, and activities as the National Industrial 
Recoverv Board nuiv deem necessary to effectuate the purposes of 
the Act/ 

3. In order that the Code Authority shall at all times be truly 
representative of the Industry and in other respects comply with 
the provisions of the Act and the Code, the National Industrial 
Recovery Board may prescribe such hearings as it deems proper 
and may require an appropriate modification in the method of 
selection and composition of the Code Authority. 

(a) The National In(histrial Recovery Board shall have the right 
to withdraw its approval and recognition of any industry members 
chosen under the provision of Section 1 of this Article for cause. 

Approved Code No. 436 — Amendment No. 2. 
Registry No. 912-03. 



Approved Code No, 347L — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

LOCOMOTIVE APPLIANCE INDUSTRY 

As Approved on February 13, 1935 



OKDER 



Approving Amendment of Supplementary Code of Fair Com- 
petition FOR THE Locomotive Appliance Industry, a Division of 
THE Machinery and Allied Products Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Supplementary Code of Fair Competition for the Locomo- 
tive Appliance Subdivision of the Machinery and Allied Products 
Industry, and opportunity to be heard having been duly noticed 
to all interested parties and the annexed report on said amendment, 
containing findings with respect thereto, having been made and 
directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate, 
by reference, said annexed report and does 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 does hereby order 
that said amendment be and it is hereby approved, and that the 
previous approval of said Supplementary Code is hereby amended 
to include an approval of said Supplementary Code in its entitrety 
as amended. 

National Industrial Recovery Board, 
By W. A, Harriman, Administrative Ofjicer, 

Approval recommended : 
Barton W. Murray, 

Division Administrator. 

Washington, D. C, 

Felrvary 13, 1935. 

123726 — 35 13 (34o) 



REPORT TO THE PRESIDENT 

The President, 

The ^\li^de House. 

Sir: Under the Supplementary Code of Fair Competition for the 
Locomotive Appliance Subdivision of the Machinery and Allied 
Products Industry as approved on June 5. 1934. the Code Authority 
for said Subdivision has submitted the Amendment v hich is included 
and attached. 

Tlie Amendment provides that no manufactiu'er shall make any 
product of the Industry, identical with that ori<rinally designed by 
another manufacturer and bearing his name or trademark, without 
clearly showing, by tag or otherwise, that such })roduct was not nuide 
by the original manufacturer; also, that detailed drawings of the 
products of the Industry shall not be furnished to purchasers, though 
general drawings may be so furnished. 

Opportunity to be heard was (hdy noticed to all interested parties. 
No objections were received. 

FINDINGS 

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

It is found that : 

(a) The Amendment to said Supplementary Code and the Sup- 
j)lementai'y Code as amended are well designed to i)romote the 
policies arid purposes of Title I of the Nati(mal 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 of 
laboi- and management under adecjuate governmental sanction and 
supei-vision, by eliminating unfaii' competitive practices, by i)romot- 
ing the fullest possible utilization of the i)resent productive capacity 
of in<lustries, by avoiding undue restriction of ])r()duction (excei)t as 
may be temporarily recpiired), by increasing the consumption of in- 
dustrial and agricultural products throu.gh increasing purchasing 
])Ower, by reducing 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 })rovisi(ms 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 Locomotive Appliance Institute was and is an industrial 
association truly representative of the aforesaid Industry and that 
said association imposed and imposes no inequitable restrictions on 
ff.dmission to membership therein and consents to this amendment. 

(■•^-44) 



345 

(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. 

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

For these reasons, therefore, this amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 

Administrative Officer. 
February 13, 1935. 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE LOCOMOTIVE APPLIANCE 
INDUSTRY 

A Division of the Machinery and Allied Products Industry 

PURPOSE 

Pursuant to Article VIII, Section (b) of the Supplementary Code 
of Fair Competition for the Locomotive Appliance Industry, a 
Division of the Machinery and Allied Products Industry, duly ap- 
proved on June 5, 1934, and further to effectuate the policies of 
Title I of the National Industrial Recovery Act, the following 
amendment is established as a part of said Supplementary Code of 
Fair Competition and, upon approval, shall be binding upon every 
member of the Locomotive Appliance Industry. 

AMENDMENTS 

Amend Article VI by the addition thereto of Sections 4 and 5, as 
follows : 

4. So long as the maker (or his successor in business) of any 
product of this Subdivision bearing the maker's name or trademark, 
which has required special designing, research or development ex- 
pense continues to make and supply such spare, repair and replace- 
ment parts therefor, no employer shall make or sell repair parts 
for such product of this Subdivision unless such repair parts shall 
be plainly marked on each part (or if this is impracticable on the 
package or tag) so that the ultimate user is clearly informed by 
such markings on parts, packages, tags and in catalogues, price lists, 
quoted prices, of such parts that said parts were not made by the 
original maker of the products of this Subdivision. 

5. No employer shall furnish to any purchaser and/or his agent, 
directly or indirectly, detailed or working drawings of any of the 
products of this Subdivision. This does not prohibit an employer 
from furnishing general drawings with such details as may be cus- 
tomarily shown thereon. 

Aitprovrd Tode No. 347L — Amendment No. 1. 
Registry No. 1399-65A. 

(346) 



Approved Code No. 422 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CANVAS STITCHED BELT MANUFACTURING 
INDUSTRY 

As Approved on February 14, 1935 



ORDEE 



Approving Amendment of Code of Fair Competition for the 
Canvas Stitched Belt Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of two amend- 
ments to a Code of Fair Competition for the Canvas Stitched Belt 
Manufacturing Industry, and opportunity to be heard having been 
duly afforded all interested parties 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, the National Industrial Recovery Board pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No.6859, dated September 27, 1934, and otherwise, 
does hereby incorporate, by reference, said annexed report and does 
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 
does hereby order that said amendments be and they are 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. 

National Industrial Recovery Board, 
By W. A. Harriman, Admimstrative Offtcer. 

Approval recommended: 
Prentiss L. Coonley, 

Division Administrator. 

Washington, D. C, 

February IJ^^ 1935. 

(347) 



KEPORT TO THE PRESIDENT 

The President, 

The White Uoiise. 

Sir : This is a report on two amendments to the Code of Fair Com- 
petition for the Canvas Stitched Belt Manufacturing Industry. The 
amendments which are attached were presented by the Code Au- 
thority for the Canvas Stitched Belt Manufacturing Industry. 

Notice of opportunity to be heard was given all interested parties, 
and no objections w^ere received. 

One amendment revises the definition of the term " Industry " to 
include the Balata Belt Manufacturing Industry and the other speci- 
fies that the weight per commercial yard of cotton duck must be 
stated in billing or quoting the price of any standard competitive 
grade of canvas stitched belting. 

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

The National Industrial Recovery Board finds that: 

(a) The amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general wel- 
fare by promoting the organization of industry for the purpose of 
coo|)erative action of labor and management under adequate govern- 
mental sanction and supervision, bj'^ eliminating unfair competitive 
practices, by promoting the fullest possible utilization of the present 
productive capacity of industries, by avoiding undue restriction of 
production (except as may be temporarily required), by increasing 
the consumption of industrial and agricultural products through 
increasing purchasing power, by reducing and relieving unemploy- 
ment, by improving standards of labor, and by otherwise rehabilitat- 
ing industry. 

(b) The Code as amended complies in all respects Avith the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendments on behalf of the Industry as a whole. 

(d) The amendments and the Code as amended are not designed to 
and will not j^ermit monopolies or monopolistic practices. 

(e) The amendments and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For the alx)ve reasons these amendments have been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
AdTninistrative Ojfficer. 

February 14, 1935. 

(248) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE CANVAS STITCHED BELT MANUFACTURING 
INDUSTRY 

Article II, Section 1, shall be amended to read as follows: 
The term '* Industry " as used herein includes the manufacture 
and the sale by manufacturers of canvas stitched belting and/or 
balata belting, but does not include solid woven, rubber, or leather 
belting, or the manufacture of the fabric used in canvas stitched 
and/or balata belting. 

The following shall be added as Article VII, Section 5 : 
No member of the Industry shall quote or bill any standard com- 
petitive grade of canvas stitched belting without plainly specifying 
as part of the quotation and/or billing the weight in ounces per com- 
mercial yard of 36 inches by 42 inches, of the cotton duck used in 
the manufacture of the belt being quoted and/or sold. 

Approved Code No. 422 — Amendment No. 1. 
Registry No. 205-02. 

(349) 



Approved Code No. 425 — Amendment No, 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MANGANESE INDUSTRY 
As Approved on February 14, 1935 



ORDEE 



Approving Amendment of Code of Fair Competition for the 
Manganese 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 Manganese Industry, and 
NOTICE OF OPPORTUNITY TO BE HEARD, Administrative 
Order No. 425-8, dated December 4, 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate by 
reference said annexed report and does find that said amendment and 
the Code as constituted after being amended comply in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act, and does 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. 

National Industrial Recovery Board. 
By W. A. Harriman, Adtninisi native Officer. 
Approval recommended : 
W. P. Ellis, 

Division Achninistrator, 
Washington, D. C, 

February IJ^.^ 193o. 

(351) 



REPORT T(3 THE PRESIDENT 

Tlie President, 

The White House. 

Sir: An a])plicati()n has been duly made pursuant to and in full 
compliance with the provisions of the National Industrial Recovery 
Act, for an aniendnient to the Code of Fair Competition for the 
Man<r5inese Industry, submitted by the Code Authority for the said 
Indu.stry. 

The existinn; provisions of Section 8 of Article III of the Code of 
Fair Competition for the Man<2.anese Industry have been found to be 
inadequate, in that the oi)erations in this Industry require the employ- 
ment of hoist men, powerhouse men and pump men for longer periods 
than ordinary workers. 

FINDINGS 

The Deputy Administrator in his final report to us on said amend- 
ment to said Code having found as herein set forth and on the basis 
of all the proceedings in this matter: 

We 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 including 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 
reliabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provision of said Title of said Act, including without limitation 
sub-Section (a) of Section 3, sub-Section (a) of Section 7 and sub- 
Section (b) of Section 10 thereof. 

(c) The Code em])Owers the Code Authority to present the afore- 
said amendment on behalf of the Industry as a whole. 

(d) The amendment and the Code as amended are not designed to 
and will not permit monoj)olies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not op- 
erate to discriminate against them. 

(352) 



353 

(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, we have approved this amendment. 
For the National Industrial Recovery Board : 

W. A. Harriman, 

Administrative Officer. 
February 14, 1935. 



Amendment to Code of Fair Competition for the Manganese 

Industry 

Add to Section 3, Article III : 

(c) There shall be an exemption as to the limitations of hours of 
labor as it shall apply to hoist men, power house men, or pump 
men, provided that total working hours of such employees shall not 
exceed forty-eiirht (48) hours in any one (1) week. 

Approved Code No. 425 — Amendment No. 1. 
Registry No. 1218-06. 

(354) 



Approved Code No. 382 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

TRANSPARENT MATERIALS CONVERTERS 
INDUSTRY 

As Approved on February 14, 1935 



ORDER 



Approving Amendment of Code of P^air Competition for the 
Transparent Materials Converters Industry 

Amendment to Sections 1, 2, and 5 of Article V 

WHEREAS, Section 6 of Article V of the above-named Code pro- 
vides as follows: 

" In the event that the wages specified for the Northern Zone 
in Article V, Section 1, in the Code of Fair Competition for the 
Paper Bag Manufacturing Industry, and Article V, Section 4, of said 
Code, as approved on January 26, 1934 are modified pursuant to 
the hearing held on February 13, 1934 for the purpose of determin- 
ing the adequacy of the minimum wages established in said Code, 
then and in that event, such amended provisions shall apply also to 
this Industry and this Code, and Sections 1, 2, and 5 of Article 
I of this Code shall be deemed to have been amended so as to con- 
form thereto and the Administrator may direct that this Code be 
reprinted and republished as so amended." 
and 

WHEREAS, by Administrative Order No. 230-23, dated Febru- 
ary 5, 1935, the National Industrial Recovery Board approved an 
amendment increasing the wages specified for the Northern Zone in 
Article V, Section 1 and Article V, Section 4 of the Code of Fair 
Competition for the Paper Bag Manufacturing Industry as set 
forth in said Order, in full compliance with the provisions of Title 
I of the National Industrial Recovery Act, approved June 16, 1933, 
and 

WHEREAS, the annexed report on an amendment to the Code 
of Fair Competition for the Transparent Materials Converters 
Industry, containing findings with respect thereto, has been made 
and directed to the President; 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 

(355) 



356 

Executive Order Xo. 6859, by Section 6 of Article V of said Code 
of Fair Competition for the Transparent Materials Converters In- 
dustry and otherwise, does hereby incorporate by reference said an- 
nexed report and does find that said amendment and the Code as 
constituted after beinji; amended comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and does hereby order that said amendment 
to the Code of Fair Competition for the Transparent Materials 
Converters Industry be and it hereby is approved as of February 5, 
1935, and that the previous approval of said Code is hereby amended 
to include an approval of said Code in its entirety as amended. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative 0-fficer. 

Approval recommended : 
Joseph F. Battley, 

Division Administrator. 

Washington, D. C, 

February U, 1935. 



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 Transparent Materials Converters Industry. Your 
Order dated November 17, 1933, approving the Code of Fair Com- 
petition for the Paper and Pulp Industry, provided, in part, that 
within ninet}^ days after the effective date of the Code of Fair Com- 
petition for the Paper and Pulp Industry a further hearing shall be 
held for the purpose of determining the adequacy of the minimum 
wages established in said Code, after which a report and recom- 
mendation should be submitted to you for your further order which 
should have the effect of a condition to your approval of said Code. 

Because of the relationship between the Paper and Pulp Industry 
and the Paper Bag Manufacturing Industry, the wage provisions 
in the two Codes were id^^ntical. Further, in view of the provision 
in your Order approving the Code for the Paper and Pulp Industry 
a provision was included in the Paper Bag Manufacturing Industry 
Code requiring that a similar healing be held on that Code and that 
in the event any of the provisiors of the Paper and Pulp Code re- 
lating to wages and h(>urs of labor should be amended, then and in 
that event, such amended provisions should apply also to the Code 
for the Paper Bag Manufacturing Industry. 

Because of the same relationship, the provision in the Code for the 
Transparent Materials Converters Industry with respect to wages is 
parallel to the wage provision applicable to the Northern Zone under 
the Code of Fair Competition for the Paper Bag Manufacturing In- 
dustry. The Code of Fair Competition for the Transparent Mate- 
rials Converters Industry provides in Section 6 of Article V that in 
the event the wages specified for the Northern Zone in Article V, 
Section 1 of the Code for the Paper Bag Manufacturing Industry, 
and in Article V, Section 4, are modified, then and in that event 
such amended provisions shall also apply to tlie Code for the Trans- 
parent Materials Converters Industry, and that Sections 1, 2, and 5 
iii Article V of the Transi)arent Materials Converters Industry Code 
shall be deemed to have been amended so as to conform thereto. 

The Codes for the Paper and Pulp Industi-y and for the Paper 
Bag Manufacturing Industry, having been amended, it is now neces- 
sary^ to amend Sections 1. 2. and 5 of Article V of the Code for the 
Transparent Materials Converters Industry. 

The effect of the amendment Avill be to increase by two cents (2^*) 
per hour the minimum wages of all employees other than office or 
clerical employees, employed in any plant in the Industry or on 
Avork connected with or incidental to the operations of such ])lant; 
to delete a provi;-ion jiermitting sub-minimum wages based upon 
(he rate paid on July 15, 1929, as low as 90% of the minimum; and 

(357) 



358 

to eliminate a provision fixing the was:?? of all other employees, 
except commission salesmen, at $12.00, $14.00, $14.50. and $15.00 per 
week, depending upon the population of the city in which the plants 
may be located and in lieu thereof, to insert a provision fixing the 
minimum wage of all such employees at $16.00 per week. 

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

The Board finds 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 Imhistrial 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 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 jiroductive 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 Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Code provides that such amendment shall become effec- 
tive upon approval of an amendment to Sections 1 and 4 of Article 
V of the Code of Fair Competition for the Paper Bag Manufactur- 
ing Industry. 

(d) Tlie 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, the said Amendment has been 
approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Adtnimstrative Ofjlcer. 
February 14, 1935. 



AMENDMENT TO CODE OF FAIE COMPETITION FOR 
THE TRANSPARENT MATERIALS CONVERTERS IN- 
DUSTRY 

Article V, Section 1 is hereby deleted and in lieu thereof the fol- 
lowing is inserted : 

Section 1. The minimum rate of wage of any employee, other 
than office or clerical employees, employed in any plant of the In- 
dustry, or on work connected with or incidental to the operation of 
such plant, shall be as follows : 

Male labor 40 cents per hour. 

Female labor 35 cents per hour. 

Article V, Section 2 is hereby deleted. 

Article V, Section 3 is renumbered as Section 2. 

Article V, Section 4 is renumbered as Section 3. 

Article V, Section 5 is hereby deleted and in lieu thereof the fol- 
lowing is inserted as Section 4: 

Section 4. The minimum rate of wages for all other employees, 
except commission salesmen, shall be not less than $16.00 per week. 

Article V, Sections 6, 7, 8, 9 and 10 are renumbered as Sections 5, 
6, 7, 8 and 9 respectively. 

Approved Code No. 382 — Amendment No. 2. 
Registry No. 402-02. 

123726—35 14 (o59) 



Approved Code No. 335 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

ART NEEDLEWORK INDUSTRY 

As Approved on February 15, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the Art 
Needlework 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 Art Needlework Industry, and 
a hearing being 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, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate 
by reference said annexed report and does find that said amendments 
and the Code as constituted after being amended complies in all 
respects with the pertinent provisions and will promote the policy 
and purposes of said Title of said Act, and does hereby order that 
said amendments be and they are hereby approved, and that the 
previous approval of said Code is hereby amended to include an ap- 
proval of said Code in its entirety as amended upon the following 
conditions : 

(1) Within fifteen (15) daj^s from the date hereof a committee 
shall be appointed which shall consist of two representatives of the 
Industry to be chosen by the Code Authority, one representing the 
Stamped Goods Division and one representing the Yarn Division; 
one representative of the Division of Research and Planning of the 
National Recovery Administration, and one representative of the 
Labor Advisory Board of the National Recovery Administration, 
and 

(2) It shall be the duty of this committee to prepare within ninety 
(90) days from the date hereof a schedule of rates of pay for home- 



362 

workers employed in the finishing of samples and display models not 
intended for resale, and 

(3) Such committee shall investigate the problem of homework 
in this Industry and make recommendations within said period as 
to the possibility of either eliminating or regulating homework in 
this Industry. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
Prentiss L. Coonley, 

Division Adrtiinistrator. 

Washington, D. C, 

February 15, 193b. 



REPOKT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on amendments to the Code of Fair Competi- 
tion for the Art Needlework Industry. Notice of Hearing on these 
amendments was published on August 22, 1934; and a hearing was 
held on September 7, 1934. The amendments, which are attached, 
were 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 the Said Industry. 

These amendments provide for additional 64 hours overtime in any 
calendar year, to obtain from the members of the Industry such in- 
formation and reports as are required for the administration of the 
Code, and for the use of N. R. A. labels. 

The Deputy Administrator in his final report to the National In- 
dustrial Recovery Board on said amendments to said Code having 
found as herein set forth, and on the basis of all the proceedings in 
this matter ; 

The National Industrial Recovery Board finds 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 of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competitve 
practices, by promoting the fullest possible utilization of the present 
productive capacity of industries, by avoiding undue restriction of 
production (except as may be temporarily required), by increasing 
the consumption of industrial and agricultural products through in- 
creasing purchasing power, by reducing and relieving unemployment, 
by improving standards of labor, and b}^ 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 Authority is empowered 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. 

(363) 



364 

(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 st^eps 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. 
For the National Industrial Recovery Board : 

W. A. Harriman, 

Administrative Officer. 
February 15, 1935. 



AMENDMENT TO CODE OF FAIK COMPETITION FOR 
THE ART NEEDLEWORK INDUSTRY 

Article III, Section 1 is amended to read as follows : 

Maximum Hours. — No employee, except outside salesmen and 
employees engaged in a managerial capacity who receive not less 
than Thirty-five ($35) Dollars per week, shall be permitted to work 
in excess of forty (40) hours in any one (1) week or eight (8) 
hours in any twenty-four (24) hour period, except that both office 
and factory employees may be permitted to work not more than 
sixty-four (64) additional hours in any calendar year, but not in 
excess of eight (8) additional hours in any one (1) week, pro 
vided that time and one-third is paid for such additional hours. 

All overtime shall be reported to the Code Authority monthly on 
a form to be provided for that purpose by the Code Authority. 

Article VII is amended by the deletion of Section (1) and sub- 
stituting in its place the following new Subsection (1) : 

(1) 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 National Industrial Recovery 
Board may deem necessary for the purposes recited in Section 3 (a) 
of the Act to such Federal and State agencies as it may designate; 
provided that nothing in this Code shall relieve any member of the 
Industry of any existing obligations to furnish reports to any Gov- 
ernment agency. 

Article VII is amended by the addition of the following new 
Section 4: 

4. Each member of the Industry shall keep accurate and com- 
plete records of its transactions in the Industry whenever such 
records may be required under any of the provisions of this Code, 
and shall furnish accurate reports based upon such records con- 
cerning any of such activities when required by the Code Authority 
or the National Industrial Recovery Board. If the Code Authority 
or the National Industrial Recovery Board 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 may be ex- 
amined by an impartial agency, agreed upon between the Code Au- 
thority and such member, or, in the absence of agreement, appointed 
by the National Industrial Recovery Board. 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 

(365) 



]l] 



366 

for the proper administration or enforcement of the provisions of 
this Code. 

With a view to keeping the President informed as to the observ- 
ance or non-observance of this Code of Fair Competition and any 
supplements thereto and as to whether the art needlework industry 
is taking appropriate steps to effectuate the declared policy of the 
National Industrial Recovery Act, membere of the Industry shall 
be required to furnish duly certified reports in substance as follows, 
t€ the Code Authority in such form as may hereafter be required 
by said Code Authority. 

Waffes and Hours of Labor. — Returns to be filed every four (4) 
weelvs. 

Average number of employees. 
Total hours worked. 

(3) Total wages paid. 

(4) Such facts regarding home work and home workers as may 
be required by the Code Authority in drawing up and enforcing 
plans for homework rates and the control of homework. 

(5) Such information as may be required by the Code Authority 
for the purpose of effectively administering the N. R. A. label pro- 
vision of this Code. 

(6) Such imports as may be required by the Code Authority for 
the purpose of accurately levying Code Authority Assessments. 

The Code is amended by the addition of the following new Article 
XIII: 

Subject to all rules and regulations and orders covering the issu- 
ance and/or use of labels heretofore and hereinafter prescribed by 
the National Industrial Recovery Board, all members of the in- 
dustry shall affix by stamp or stencil to all products the official 
insignia issued and/or prescribed by the Code Authority bearing 
thereon the N. R. A. insignia. This provision shall become effective 
thirty (30) days from the date of its approval, but not before Mav 
1st, 1935. 

Approved Code No. 335 — Amendment No. 2. 
Registry No. 231-08. 



Approved Code No. 84V — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

DRAPERY AND CARPET HARDWARE 
MANUFACTURING INDUSTRY 

As Approved on February 15, 1935 



ORDER 



Approving Amendment of Supplementary Code of Fair Competi- 
tion FOR THE Drapery and Carpet Hardware 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 the approval of an 
Amendment to the Supplementary Code of Fair Competition for the 
Drapery and Carpet Hardware Manufacturing Industry, and oppor- 
tunity to be heard thereon having been duly noticed 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, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise, 
does hereby incorporate, by reference, said annexed report and does 
find that said Amendment and the Supplementary Code as con- 
stituted after being amended comply in all respects with the per- 
tinent provisions and will promote the policies and purposes of said 
Title of said Act, and does hereby order that said Amendment be 
and it is 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; provided such 

(367) 



368 

approval and such Amendment to take effect twenty (20) days from 
the date hereof, unless good cause to the contrary is shown to the 
National Industrial Recovery Board before that time and the Na- 
tional Industrial Recovery Board issues a subsequent order to that 
effect. 

. , National Industrial Recovery Board, 
By W. A. Harriman, Achninistrative Officer. 

Approval recommended : 

John W. Upp, 

Acting Division Administrator. 

Washington, D. C, 

Febi^uary 15^ 1936. 



REPORT TO THE PRESIDENT 

The President, 

The White Honise. 

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 Article IV of the Supplementary Code 
of Fair Competition for the Drapery and Carpet Hardware Manu- 
facturing Industry, a division of the Fabricated Metal Products 
Manufacturing and Metal Finishing and Metal Coating Industry, by 
the Supplementarj^ Code Authority for that Industry. 

The Supplementary Code of Fair Competition for the Drapery 
and Carpet Hardware Manufacturing Industry was approved on 
May 9, 1934. Article IV, Section 11, Sub-section (f), provides that 
the Supplementary Code Authority shall secure from the members 
of the Industry an equitable and proportionate payment of the 
reasonable expenses of maintaining the Supplementary Code Au- 
thority and its activities. 

The above 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 amendment has, therefore, been 
proposed to create a legal obligation, on the part of the Industry 
members, to pay their pro rata share of the expenses of the Supple- 
mentary Code Authority. 

FINDINGS 

The Assistant Deputy Administrator in his final report to the 
National Industrial Recovery Board on said amendment of said 
Supplementary Code having found as herein set forth and on the 
basis of all proceedings in this matter : 

It has been found that : 

(a) The amendment of said Supplementary Code and the Supple- 
mentary Code as amended are well designed to promote the policies 
and purposes of Title I of the National Industrial Recovery Act in- 
cluding 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 man- 
agement 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 

(369) 



370 

agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) The Supplementar}' Code as amended complies in all respects 
with the pertinent provision of said title of said act, including with- 
out limitation subsection (a) of Section 3, subsection (a) of Section 
7 and subsection (b) of Section 10 thereof. 

(c) The amendment and the Supplementary Code as amended are 
not designed to and will not permit monopolies or monopolistic 
practices. 

(d) 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. 

(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, the amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Ad>ministrative Officer. 
Febkuart 15, 1935 



AMENDMENT OF SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE DRAPERY AND CARPET 
HARDWARE MANUFACTURING INDUSTRY 

A Division of the Fabricated Metal Products Manufacturing 
AND Metal Finishing and Metal Coating Industry 

Amend Article IV by deleting Subsection (f) of Section 11 and 
substituting the following in lieu thereof : 

Section 11. (f) (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 effectu- 
ate 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 National Industrial Recovery Board for its 
approval, subject to such notice and opportunity to be heard as it 
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 
the members of the Industry ; 

(3) After such budget and basis of contribution has been ap- 
proved by the National Industrial Recovery Board, 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. 

(b) Each member of tlie 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 pertaining thereto issued by the National 
Industrial Recovery Board. Only members of the Industry comply- 
ing with the Supplementary 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 selections of members of the Su})plementary 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 Supplementary Code Authorities shall neither incur nor 
pay an}^ 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 

(371) 



372 

approval of the Xatioiial Industrial Recovery Board; and no sub- 
sequent budget shall contain any deficiency item or expenditures in 
excess of prior Budget estimates except those which the National 
Industrial Recovery Board shall have so ai)proved. 

Delete Subsection (g) of Article IV, Section 11. 

Renumber subsection (h) to read subsection (g). 

Renumber subsection (i) to read subsection (h). 

Renumber subsection (j) to read subsection (i). 

Approved Code No. 84V — Amendment No. 1. 
Registry No. 1114-22. 



Approved Code No. 446 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CANNING INDUSTRY 
As Approved on February 16, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Canning Industry 

An application having been duly made pursuant to, and in full 
compliance with, the provisions of Title I of the National Indus- 
trial Recovery Act, approved June 16, 1933, for approval of an 
amendment to the Code of Fair Competition for the Cannin<y Indus- 
try, and hearings having been duly held thereon, and the Deputy 
Administrator for Hawaii having made and submitted to the Na- 
tional Industrial Recovery Board his report on said amendment, con- 
taining his findings with respect thereto, and the annexed report of 
the National Industrial Recovery Board 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, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6859, Executive Order No. 6543-A and other- 
wise : does hereby incorporate by reference said report of the Deputy 
Administrator for Hawaii and the annexed report of the National 
Industrial Recovery Board, and does hereby concur in and adopt 
the findings of fact made therein, and does find that the said amend- 
ment and the Code as constituted after being amended comply in 
all respects with the pertinent provisions and will promote the policy 
and purposes of Title I of the National Industrial Recovery Act; 
and does hereby order that said amendment to the Code of Fair 
Competition be, and it is hereby, approved and that the previous ap- 
proval of said Code is hereby modified to include an approval of 
said Code in its entirety as amended. This approval to the afore- 
said amendment is subject to the following condition : 

That the provisions of Section 9 of Article V of said Code re- 
quiring authorization in writing by em])lo3^ees for deductions from 
wages shall not be api)licable to the deductions for perquisites which 

(373) 



374 

may be authorized by the Deputy Administrator for Hawaii as 
provided in the amendment. 

This amendment shall become effective on the 17th day of March 
1935. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
Armin W. Eiley, 

Division AdTninistrator. 

Washington, D. C, 

February 16, 1935. 



REPORT TO THE PRESIDENT 

I. Introduction 

The President, 

The White House. 

Sir : This is a report of a hearing on an amendment to the Code of 
Fair Competition for the Canning Industr}' held in Honolulu, T. H. 
pursuant to the provisions of Sections 2 and 3 of Article IV of 
the Code of Fair Competition for the Canning Industry, approved 
on May 29, 1934, and continued until October 30, 1934, in accordance 
with the conditions of tlie National Industrial Recovery Act. 

At the request of the National Canning Code Authority the con- 
tinued hearing was delayed until October 30, 1934, in order to per- 
mit Mr. A. W. Fames, member of the National Canning Code Au- 
thority to be present. 

All of the members of the industry in the Territory of Hawaii were 
represented at the hearing. 

11. Labor Provisions 

The amendment provides that in the Territory of Hawaii the 
minimum rate of pay shall not be less than that paid for the same 
class of work on JuW 15. 1929, provided that the minimum rate in 
the City and County of Honolulu shall be 250 per hour for males 
and 200 per hour for females, and that the minimum rate elsewhere 
shall be 90% of the Honolulu rate. It also provides that no 
deductions of perquisites shall be made unless such deductions are 
previously approved in the case of each cannery by the Deputy 
Administrator in the Territory of Hawaii, the maximum deduction 
for perquisites not to exceed $2.75 per week. This provision is the 
same in the case of both seasonal and non-seasonal employees. 

It is estimated that the proposed amendment will increase the pay- 
roll of the industry over $200,000 a year with actual average weekly 
increase in cash wages to seasonal employee of $1.50 to $2.00 a week. 

III. Findings 

The Deputy Administrator for Hawaii having made and submitted 
to us his report on said amendment, containing his findings with 
respect thereto, we do hereby adopt said report and incorporate it 
by reference in this report. 

We find that : 

(a) The amendment as recommended complies in all respects with 
the pertinent provisions of Title I of the National Industrial Re- 
covery Act, including, without limitation, sub-section (a) of Section 
7, and sub-section (b) of Section 10 thereof. 

(b) The hearings on the proposed amendment were held pursuant 
to Article IV, Sections 2 and 3 of the Code of Fair Competition for 

123726—35 15 (375) 



376 

the Canning Industry. Every member of the Industry in the 
Territory of Hawaii was represented at the hearing as was also the 
Code Authority for the Industry. Article VI, Section 5, sub-section 
(m) and Article IX, Section '2 empower the Code Authority to 
present the aforesaid amendment on behalf of the Industry as a 
whole. The Code Authority .'submitted the aforesaid amendment for • 
approval in pursuance of such provisions of the Code. 

(c) The amendment and the Code as amended are not designed 
to promote monopolies or to eliminate or oppress small enterprises 
and will not operate to discriminate against them, and will not 
permit monopolies, or monopolistic practices. This protection is as- 
sured by the provisions in the amendment establishing a minimum 
wage difl'erential between the City and County of Honolulu and 
elsewhere in the Territory. This i)rotects the small canneries in 
the rural sections elsewhere in the Territory. An additional safe- 
guard against the oppression of the small rural canneries is estab- 
lished by allowing them to make deductions for perquisites. No 
deductions are made for perquisites in the City and County of 
Honolulu. 

(d) The amendment and Code as amended will remove obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof. The adoption of the minimum 
rates contained in the aforesaid amendment will result in an annual 
pay-roll increase of approximately $200,000. The weekly wage of 
about six thousand employees will be increased. This will effect a 
considerable addition to the nuiss purchasing power of the Territory. 
When this increase is added to that which will be effected by the 
adoption of Codes of Fair Competition by other industres in the 
Territory there will result a tremendous addition to the amount of 
goods which will be consumed in the Territor}-, which goods will be 
imported principally from the mainland. Consequently, one of the 
principal obstructions which diminishes the amount of commerce 
between the Territory and the mainland, and indirectly between the 
various states, will be removed. 

(e) The amendment and the Code as amended will promote the 
fullest possible utilization of the present i)roductive capacity of in- 
dustries. The aforesaid increased purchasing power resulting from 
the adoption of the proposed amendment will create additional de- 
mand for goods and commodities of all sorts and kinds. In order to 
meet these demands, the ])roductive capacity of industries will be 
promoted and utilized. This increase in production will have the 
effect of beneficially encouraging interstate commerce, both in the 
movement of raw material used in the process of jiroduction and in 
the distri])ution of finished good,s and conmiodities. 

(f) The amendment and Code as amended will avoid undue re- 
striction of production. There exists at present this undue restric- 
tion of production due to the absence of demand for goods produced, 
which in turn is caused by the depressed purchasing power of the 
public. The increased purchasing ])ower effected by the adoption 
of the proposed amendment will tend to avoid this undue restriction 
of production. 

(g) The amendment and the Code as amended will increase the 
consumption of industrial and agricultui-al products by increasing 
purchasing power in the manner above described. 



377 

(li) The amendment and the Code as amended will reduce and. 
relieve unemployment. The increase in production brought about 
bj the said added mass purchasing power w^ill tend to make neces- 
sary the employment of persons not now employed. 

(i) Practically the entire product of the industry in the Territory 
is shipped to the mainland, where it is consumed. Canned pineapple 
and canned pineapple juice, the principal products of the industry 
in the Territory, exceed in volume virtually every other canned 
fruit. The pack of the Territory represents 1/15 of the entire can- 
ning industry volume. Thus we see the extent to which commerce 
between the Territory and the maiidand and also between the va- 
rious states is affected by the economic condition of the pineapple 
industry. 

From a merchandising point of view, most of the canned products- 
are closely interrelated. If the price of pineapple goes too hi oh, the 
consumption of that product will shift to some lower price canned 
fruit. Similarly if the price of pineapple becomes too low in rela- 
tion to other canned fruits, consumption of those other canned fruits 
will fall off. If the labor rates under which pineapple is canned are 
allowed to be substantially under the mainland rates, the entire com- 
petitive structure of the industry will be disrupted. Not only is 
commerce between the Territory and the mainland affected but, due 
to the amount of pineapple consumed on the mainland, interstate 
commerce as well, is most vitally affected by the condition of this 
industry; hence, it is evident that the establishment of reasonable 
minimum wages for the Territory directly affects interstate 
commerce. 

(j) Those engaged in other stops of the economic process have 
not been denied the right to be heard at the public hearing. The 
notice of the hearing was duly publicized. All parties whatsoever 
who desired to be heard were given the privilege to speak at the 
hearing. 

We have, therefore, approved this amendment, subject to the condi- 
tion, however, that the provisions of Article V, Section 9 of the Code 
requiring authorization in writing by employees for deductions from 
wages shall not be applicable to the deductions for perquisites which 
may be authorized by the Deputy Administrator for Hawaii, as 
provided in the amendment. 

For the National Industrial Recovery Board : 

W. A. Harriman, 

Administrafive OiRcer. 
February 16, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE CANNING INDUSTRY 

Amend Article IV, Section 2, last paragraph. Eliminate the 
word '• Hawaii " and add a new paragraph, viz. : 

" Hawaii District. The minimum rate paid for the same class of 
work as on July 15, 1929, provided that the minimum rate in the 
City and County of Honolulu shall be 25^ per hour for males and 
20^ per hour for females, and the minimum rate elsewhere in the 
Territory of Hawaii shall be 90% of the Honolulu rate. No deduc- 
tions for perquisites shall be made unless such deductions are pre- 
viouslj' approved in the case of each cannery by the Deputy Admin- 
istrator in the Territory of Hawaii, the maximum deduction for 
perquisites not exceeding $2.75 per week." 

Amend Article IV, Section 3, last paragraph. Eliminate the word 
" Hawaii '' and add a new paragraph, viz. : 

" Hawaii District. The minimum rate in the City and County of 
Honolulu shall be 25^ per hour for males and 20^ per hour for 
females, and the minimum rate elsewhere in the Territory of Hawaii 
shall be 90% of the Honolulu rate. No deductions for perquisites 
shall be made unless such deductions are previously approved in 
the case of each cannery by the Deputy Administrator in the Terri- 
tory of Hawaii, the maximum deduction for perquisites not exceeding 
$2.75 per week." 

Approved Code No. 446 — Amendment No. 4. 
Rogistrv No. 105-03. 

(378) 



Approved Code No. 141 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR 

INVESTMENT BANKERS 

As Approved on February 18, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for Invest- 
ment Bankers 

Applications having been duly made pursuant to and in full com- 
pliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of amendments 
of Amendment No. 2 of the Code of Fair Competition for Invest- 
ment Bankers, which are attached hereto and hereby made a part 
hereof, and Notice of Opportunity to be Heard having been afforded 
to all interested parties, and any objections filed having been duly 
considered and the annexed report on said amendments, containing 
findings with respect thereto, having been made and directed to the 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859 dated September 27, 1934, and otherwise; 
does hereby incorporate, by reference, said annexed report and does 
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 
does hereby order that said amendments, which are attached hereto 
and made a part hereof, be and they are hereby approved, and that 
the previous approvals of said Code and said Amendment No. 2 
are hereby modified to include an approval of said Code in its en- 
tirety as amended. 

National Industrial Recovery Board. 
By L. C. Marshall, Executive Secretai'y. 

Approval recommended : 
L. H. Peebles, 

Dhiision Administrator. 

Washington, D. C, 

February 18, 1935. 

(379) 



REPORT TO THE PRESIDENT 

The President, 

The White Hcmse. 
Sir: An application has been duly made pursuant to and in full 
compliance with the provisions of the National Industrial Recovery 
Act for the amendment of Amendment No. 2 of the Code of Fair 
Competition for Investment Bankers for the following purposes: 

1. To clarify the definitions " interim certificate " and "' interim 
receipt " in paragraph (t) of Article II. 

2. To modifj'^ subsection (d) of Section 1 of Article IV regard- 
ing the acceptance of stock dividends in excess of the amount 
charged earnings or earned surplus by a company paying a stock 
dividend. 

3. To clarify Section 2 of Article V with respect to three-day 
notice of organization of selling syndicate or selling group. 

4. The addition of a new Section 14 to Article X to provide for 
automatic suspension and cancellation of registration in cases of 
nonpayment of code assessments. 

5. The addition of a new Section 15 to Article X to provide for 
automatic suspension and cancellation of registration for failure 
to supply necessary reports on which code assessments are predicated. 

6. The addition of a new Section 16 to Article X to provide for 
reregistration in cases of cancellation as provided in Sections 14 and 
15 of Article X. 

The Code of Fair Competition for Investment Bankers was 
api)roved on November 27, IDS'S. Amendment No. 2 of this Code 
contains all of the Fair Trade Practice provisions and was approved 
on March 23, 1934. 

The proposed amendment clarifying paragraph (t) of Article 
II with reference to definition of the terms " interim certificate "' 
and "' interim receipt " is advisable in order to avoid the possibility 
that a temporary security which gives the holder all th',> legal rights 
might be considered either an interim certificate or interim receipt, 
as in that case under Article IV, Section 3 of the Code the required 
refund of monies paid for a security would be unjustified since the 
l)ur})ose of Article IV, Section 3 in requiring refunds of monies 
]>aid is to protect the holders of interim certificates or interim re- 
ceipts in the event that the security ])urchased cannot for any un- 
foreseen i-eason l)e delivered. In contrast with such temporary se- 
curity interim certificates and interim receipts do not give the 
holder the legal rights he would possess if the security were in 
I)ermanent form. 

It is proposed to modify subsection (d) of Section 1 of x\rticle IV 
so as to permit an organization which receives regularly recurring 
stock dividends from a company neither controlled by nor affiliated 
with it to i)romptly sell such stock dividends and take up the proceeds 

(380) 



381 

as income regardless of whether or not the proceeds are more or less 
than the proportionate amount charged against earnings or earned 
surplus by the issuing company. The section as written prohibits 
taking up as income stock dividends received at an amount greater 
than that charged against earnings or earned surplus by a company 
paying such stock dividends and this is in accordance with sound 
business practice when applied to corporations in general, buch as 
operating corporations. This principle is not applicable, however, 
with respect to organizations defined in the proposed amendment, 
such as investment trusts. 

The clarification of Section 2 of Article V is necessary because of 
uncertainty among investment bankers as to its exact intentions. 
The proposed amendment accomplishes the followino- two purposes, 
which I am advised was the intention of the provision now in the 
Code : 

1. It provides a three-day period duriiig wdiich an investment 
banker may come to a decision as to v\liether or not he wishes to par- 
ticipate in the distribution of the issue of securities as well as the 
amount of his participation, and 

2. It provides a three-day period during which the investor may 
come to a decision as to whether or not his order for a portion of the 
issue is a firm order since the order cannot become a firm order in 
accordance with the Code until written confirmation from the seller, 
which confirmation may not be given by the seller Avithin the three- 
day period. 

Under the existing Code the Code Committee has authority to can- 
cel the registration of any registered investment banker in cases of 
non-payment of code assessments, but may do so only after formal 
procedure entailing unnecessary expenses. The proposed amendment 
adding Section 14 to Article X provides ample time for the payment 
of an assessment by a registered investment banker before any action 
occurs since he has thirty days after the notice of indebtedness has 
been sent to him to pay such assessment and if the assessment is not 
received within that time a second notice is mailed to him with which 
second notice it is required that a copy of this amended section be 
included. A period of fifteen days after the second notice is x^ro- 
videcl, after which time the investment banker is automatically sus- 
pended and if payment is not received within another fifteen day 
period after suspension, his registration is automatically cancelled. 
Provision is made, however, that the Investment Bankers Code Com- 
mittee may stay the operation of automatic cancellation in any case 
in which it finds that undue or unreasonable hardship will result by 
reason of the requirement that the assessment be paid within the 
period prescribed. Necessary discretion is thus insured to the Code 
Committee in cases which warrant special consideration. 

The above remarks with reference to the proposed Section 14 are 
likewise applicable to the proposed amendment to add a new Section 
15 to Article X involving the submission of reports upon which are 
predicated the code assessments, except that there is, of course, no 
necessity for discretion with respect to automatic cancellation in this 
case since there would appear to be no valid excuse why any invest- 
ment banker could not forward a report as to the number of his 
employees. The plan of assessment is based on the number of em- 



382 

ployees of a registered investment banker, and therefore, is the con- 
trolling factor in assessments for code expenses. 

The proposed amendment adding Section 16 to Article X pro- 
vides that an investment banker whose registration has been can- 
celled in accordance with the new Section 14 may again become 
a registered investment banker upon application, provided payment 
has been made in full of the amount of the indebtedness for which 
the original registration was cancelled. It further provides that if 
an investment banker's registration has been cancelled in accordance 
with the new Section 15 for failure to send in the reports required 
by the Code the investment banker may again become a registered 
investment banker upon application if the required reports are sub- 
mitted. This section further provides that an investment banker 
who has assented to the Code is entitled to new registration only 
if he pays in full the amount of any unpaid assessment owing by 
him in his capacity as an assentor. 

FINDINGS 

The Deputy Administrator in his report to the National Indus- 
trial Recovery Board on said amendments of said Amendment No. 2 
of said Code having found as herein set forth and on the basis of 
all of the proceedings in this matter: 

It finds that : 

(a) The amendments of said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and 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) Tlie Code as amended complies in all respects with the perti- 
nent pi'ovisions 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 Committee 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. 



383 

(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, these amendments have been 
approved. 

For the National Industrial Recovery Board: 

L. C. Marshall, 
Executive Secretary. 
February 18, 1935. 



amp:xdment to code of fair competition for 
investment bankers 

Amend Paragraph (t) of Article II of Aiiu'iidnient No. 2 of the 
Code of Fair Competition for Investment Bankers: 

Strike out the first period and insert in lieu thereof a semicolon 
and the following: 

but the t^rm '" interim certificate '" or " interim receipt " shall not in- 
clude any security' in temporary form which entitles the holder 
thereof to the possession of the same legal rights in respect of such 
securit}' as would be possessed bj' the holder of the security in 
permanent form. 

Amend Article IV, Section 1, Sub-Section (d) of Amendment No. 
2 of the Code of Fair Competition for Investment Bankers: Add the 
following to the present Sub-Section : 

Where a corporation (or a voluntary association) receives regu- 
larly recurring stock dividends from a company not directly or indi- 
rectly controlled by it or affiliated Avith it and promptly sells such 
stock dividends, such recipient may take up as income the cash 
proceeds from the sale of such stock dividends, provided the amount 
thereof is segi-egated from other income in such recipient's published 
reports and a statement of the basis ui:)on which the credit is com- 
puted is given. 

Amend Article V, Section 2 of Amendment No. 2 of the Code of 
Fair Competition for Investment Bankers : 

Strike out all of the existing Section and in lieu thereof insert the 
following : 

Section 2. Three-day Notice of Orr/anlzation of SeUing Syiulicate 
or Selling Group. — Any investment banker proposing to organize a 
selling syndicate or a selling group to distribute new securities other 
than those of the United States Government or any instrumentality 
thereof or of any State or subdivision or instrumentality thereof 
shall mail or deliver or telegrajih a copy of the prospectus or an 
adequate description of the security to each investment banker who 
is to be offered a ])artici})ation in such syndicate or a membership in 
such selling group at such time that, in the usual course of delivery, 
such pros})ectus or description will be received by all such invest- 
ment bankers on approximately the same day and at least three days 
(excluding Sundays and holidays but including the day of delivery) 
before the chvte fixed by the manager wlien ])articipants in such syndi- 
cate or members in such grou)) must acce])t or refuse such participa- 
tion or membership and such manager shall, either at the time of 
the mailing or delivery or telegraphing of such prospectus or descrip- 
tion as aforesaid or at another time, fix a date for the public offering 
of such securities which offering date shall be a date not earlier than 
the date fixed by such manager when participants in such syndicate? 
or members in such group must accept or refuse such participation 
or membership. 

(384) 



385 

After the receipt of the prospectus or descripton any investment 
banker who is to be offered a participation in a selling sjaidicate 
or a membership in a selling group may advise prospective purchas- 
ers in regard to the security, but no such investment banker shall 
confirm an order for such securities before the day fixed by the 
manager for the public offering or before he shall have accepted 
in whole or in part the participation or membership offered to him. 

Amend Article X of Amendment No. 2 of the Code of Fair Com- 
petition for Investment Bankers: 

Add the following new Section to be numbered Section 14 : 

Section 14. Payment of Assessment. — Any registered investment 
banker who shall, upon the date when this amended Section becomes 
effective, have failed to pay anj^ assessment levied against him pur- 
suant to the provisions of Section 13 of this Article X, within 80 
days after notice of his indebtedness shall have been sent him, or 
any registered investment banker who shall, at any time after this 
amended Section becomes effective, fail to pay any assessment levied 
against him pursuant to the provisions of Section 13 of this Article 
X, within 30 days after notice of his indebtedness shall have been 
sent him, shall immediatley be sent by registered mail a second 
notice in writing of his indebtedness, and if said indebtedness be not 
liquidated within 15 days after the date of the mailing of such sec- 
ond notice, the registration of such delinquent registered invest- 
ment banker is thereby automatically suspended; provided that a 
copy of this amended Section shall have been sent to such delin- 
queiit registered investment banker with such second notice. Any 
registered investment banker whose registration shall have been 
suspended as provided in this amended Section shall be imme- 
diately notified in writing of the suspension of his registration, and 
his registration may be automatically reinstated after payment of 
his indebtedness; provided such payment shall be made within 15 
days after such registration has been so suspended. If any delin- 
quent registered investment banker shall fail to pay his indebted- 
ness after 15 days suspension his registration shall be automatically 
canceled ; provided, however, that the Investment Bankers Code Com- 
mittee may stay the operation of the automatic cancellation provided 
for herein, in any case in which it finds that undue or unreasonable 
hardship will result to a registered investment banker by reason of 
the payment by him of his assessment wnthin the period prescribed. 

Amend Article X of Amendment No. 2 of the Code of Fair 
Com])etition for Investment Bankers: 

A(ld the following new Section to be numbered Section 15: 

Section 15. FiJi/ir/ of Reports for Assessmer^fs-. — Any registered 
investment banker who shall, upon the date when this amended 
Section becomes effective, have failed to file with the Investment 
Bankers Code Committee any report within 30 days aftei- notice 
shall have been sent him that such report is required for the purpose 
of any assessment to be levied i3ursuant to the jn-ovisions of Section 
13 of this Article X, or any registered investment banker who shall, 
at any time after this amended Section becomes effective, fail to file 
with the Investment Bankers Code Committee any report within 
30 days after notice shall have been sent him that such report is 
required for the purpose of any assessment to be levied pursuant to 



386 

the provisions of Section 13 of this Article X, shall immediately 
be sent by registered mail a second notice in writing to file such re- 
port, and if such report be not filed within 15 days after the mailing 
of such second notice the registration of such delinquent registered 
investment banker is thereby automatically suspended; provided 
that a copy of this amended Section shall have been sent to such 
delinquent registered investment banker with such second notice. 
Any registered investment banker whose registration .-;liall have 
been thus suspended shall be immediately notified in writing of the 
suspension of his registration ; and his registration may be auto- 
matically reinstated after filing such report and after payment of 
any assessment leaned against him based on such rej)ort; provided 
such payment shall be made within 15 days after notice of his in- 
debtedness shall have been sent to him. If any delinquent registered 
investment banker shall fail to file his report after 15 days suspen- 
sion or shall fail to pay his indebtedness within 15 days after notice 
of assessment levied based on such report, his registration shall be 
aut'omatically cancelled. 

Amend Article X of Amendment Xo. 2 of the Code of Fair 
Competition for Investment Bankers: 

Add the following new Section to be numbered Section 16 : 
Section 16. Application for Renewal of Cancelled Registra- 
tions. — Any investment banker whose registration as a registered 
investment banker shall have been cancelled as providefl in Section 
14 or 15 of this Article X, may apply for a new registration as a 
registered investment banker by an application therefor made in the 
same manner and under the same conditicms as are specified in this 
Article X with respect to an original application for such registra- 
tion; provided, that in the event such cancellation shall have been 
made under the provisions of said Section 14, the application for 
new registration shall be preceded or accompanied by payment in 
full of the amount of the indebtedness for which the original regis- 
tration of such applicant shall have been cancelled; and, provided, 
further that in the event such cancellation shall have been made 
under the provisions of said Section 15, the application for such 
new registration shall be preceded or accompanied by the report or 
reports as to which the applicant was delinquent, and thereupon 
there shall be levied against such a])plicant the same assessment or 
assessments based on said report or reports which would have been 
levied if said report or reports had been filed in accordance with 
the original notice thereof, and such new registration shall not be 
granted until such applicant shall pay in full the amount of said 
as.sessment or assessments. No investment banker who shall have 
assented to the Code shall be entitled to a new registration as pro- 
vided in this Section unless he shall also first pay in full the amount 
of any unpaid assessment owing by him in his capacity as such 
Assentor. 

Approved Code No. 141 — Amendment No. 3. 
Kpgistry No. 1707-04. 



Approved Code No. 72 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PACKAGING MACHINERY INDUSTRY AND TRADE 
As Approved on February 18, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Packaging Machinery Industry and Trade 

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

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and other- 
wise; does hereby incorporate, by reference, said annexed report and 
does 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 does 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. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
Barton W. Murray, 

Division Administrator. 
Washington, D. C, 

Felruary 18, 1936. 

(387) 



REPORT TO THE PRESIDENT 

The President, 

The White Hotise. 

Sir : This is a re})Oi't on an amendment of the Code of Fair Com- 
petition for the Packapng Machinery Industry and Trade, approved 
October 31, 1983, and amended July 17, 1934, to amplify and clarify 
the definition of the Industry, and to add certain provisions to the 
Articles of the Code relating: to Employment, Wages, Hours, State 
Labor Regulations and Activities of the Code Authority. The 
amendment was proposed by the Code Authority for said Industry. 

This amendment is designed to replace Section 1, Article II; Sec- 
tion 1 (d). Article VII; and Article IX; and to add Sections 2 
and 3 to x\rticle V; Section 1 (e) to Article VIII; and Sections 5 and 
6 to Article X. A hearing on this amendment was held July 26, 
1934. No objections were received. 

FINDINGS 

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

The National Industrial Recovery Board finds 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 mangament under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fullest possible utilization of the 
j)resent productive capacity of industries, by avoidin^^ undue restric- 
tion of production, by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(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. 

(.388) 



389 

(e) The amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not oper- 
ate to discriminate against them. 

(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, the amendment has been approved. 

For the National Industrial Recovery Board : 

W, A. Harriman, 
Admiwlstrative Ojjicer. 

February 18, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE PACKAGING MACHINERY INDUSTRY AND 
TRADE 

Article II — The Industry and Trade 

Amend Section 1 to read as follows : 

" The term ' packaging machinery industry ', as used herein, is 
defined to mean the manufacture of power-driven automatic and 
semiautomatic or hand or foot operated machinery and/or equipment 
and parts thereof used in the manufacture of packages (except ma- 
chinery and/or equipment for the nuinufacture of glass, wood and 
metal packages specifically included under codes of fair competition 
approved by the President) and nailing machines and machinery 
and/or equipment and parts therefor used in packaging processes 
and/or in the preparation of products for shipment, and such other 
related machines and/or equipment as may be incorporated in the 
definition of the industry upon approval of the President." 

Article V — Employment 

Number sole paragraph in Article V as Section 1 and add Section 
2 to read as f ollow- s : 

" Section 2. 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." 

Add Section 3 to read as follows: 

" Section 3. Every employer shall provide for the safety and health 
of employees (hiring the hours and at tlie places of their employ- 
ment. Standards of safety and health shall be submitted by the 
Code Authority to the National Industrial Recovery Board within 
six months after the effective date of this amendment." 

Article VII — ^^Vages 

Amend Section 1 (d) to read as follows: 

"A person whose earning capacity is limited because of age or 
physical or mental handicap or other infirmity may be employed on 
light work at a wage below the mininnim established by this Code 
if the employer obtains from the State autliority designated b}^ the 
United States Department of Labor a certificate authorizing his 
employment at such wages and for such hours as shall be stated 
in the certificate. Each employer shall file monthly with the Code 
Authority a list of all such persons employed by him, showing 
tlie wages paid to, and the maximum hours of work for, such 
employee." 

C^.fto) 



391 
Article VIII — Hours 

Add sub-section 1 (e) to read as follows: 

" For the purposes of providing factual information on the effects 
of the hours and wages provisions of this Code, each member of 
the Industry and/or Trade shall report to the Code Authority for 
tlie information of the National Industrial Recovery Board such 
statistics as tlie National Industrial Recovery Board may require.-^ 

Article IX — State Regulations 

Amend Article IX to read as follows : 

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

Article X — Code Authority 

Add Section 5 to read as follows : 

'" Nothing contained in this Code shall constitute the members of 
the Code Authorit}' partners for any purpose. Nor shall any mem- 
ber of the Code Authority be liable in any manner to anyone for 
any act of any other member, officer, agent or employee of the Code 
Authority. Nor shall anj^ 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." 

Add Section C to read as follows : 

" If the National Industrial Recovery Board shall at any time de- 
termine that any action of a Code Autliority or any agenc}^ thereof 
may be unfair or unjust or contrary to tlie public interest, the Na- 
tional Industrial Recovery Board 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 
agenc}' pending final action which shall not be effective unless the 
National Industrial Recovery Board apjiroves or unless it shall fail 
to disapprove after thirty (30) days' notice to it of intention to pro- 
ceed with such action in its original or modified form." 

Approved Code No. 7i: — Amendmtut No. 2. 
Registry No. 1399-30. 



123726—35 Iti 



Approved Code No. 301P — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SHEET METAL DISTRIBUTING TRADE 

As Approved on February 18, 1935 



ORDER 



Approving Amendment of Supplementary Code of Fair Competi- 
tion FOR THE Sheet Metal Distributing Trade 

A division OF the WHOLESALING OR DISTRIBUTING TRADE 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Supplementary Code of Fair Competition for the Sheet 
Metal Distributing Trade to the Code of Fair Competition for the 
Wholesaling or Distributing Trade, and opportunity to be heard 
having been afforded all members of said Trade 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order 6859, dated September 27, 1934, and otherwise; 
does hereby incorporate, by reference, said annexed report and does 
find that said amendment and the Supplementary Code as consti- 
tuted 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 does hereby order that said amendment be and it 
is hereby approved, and that the previous approval of said Supple- 
mentary Code is hereby amended to include an approval of said 
Supplementary Code in its entirety as amended. 

National Industrial Reco\'ery Board, 
By W. A. Harriman, Administrative Ofjicer. 

Approval recommended : 
Harry C. Carr, 
Acting Division Administrator. 
Washington, D. C, 

Februarii 18, 19S5. 

(39.S) 



REPORT TO THE PRESIDENT 

The President, 

Tlie White House. 

Sir: This is a report of Opportunity to be Heard on an amend- 
ment to a Supplementary Code of Fair Competition for the Sheet 
Metal Distributing Trade, a division of the Wholesaling or Distrib- 
uting Trade, said Supplementary Code being Approved Code No. 
201 — Supplement No. 16 and approved by the Administrator for 
Industrial Recovery on July 27, 1934. Notice of Opportunity to be 
Heard on this amendment was published on December 3, 1934 giv- 
ing members of the Trade until December 24 to file objections. 

This Supplementary Code has been amended by substituting, in 
Section 4 of Article III, the words " three or more Members " for 
the previous wording " not mo^re than three Members ", thereby 
authorizing the Divisional Code Authority to select Regional Com- 
mittees consisting of more than three members in such territorial 
areas as comprise a number of states, and which would be too large 
for a Regional Committee of only three to administer in securing 
compliance with the provisions of the Supplementary Code. 

The Deputy Administrator in his final report to the National 
Industrial Recovery Board on said amendment to said Supple- 
mentary Code having found as herein set forth and on the basis of 
all the proceedings in this matter; 

The Board finds 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 of 
labor and management under adequate governmental sanction and 
supervision, by eliminating unfair competitive practices, by pro- 
moting 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 con- 
sumption of industrial and agricultural products through increasing- 
purchasing power, by reducing and relieving unemployment, by 
improving standards of labor, and by otherwise rehabilitating 
industry. 

(b) 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 National Association of Sheet Metal Distributors was and 
is a trade association truly representative of the aforesaid Trade 

(394) 



395 

and that said association imposed and imposes no inequitable re- 
strictions on admission to membership therein and consents to this 
amendment. 

(d) The amendment and the Supplementary Code as amended are 
not designated 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 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 this 
amendment to the Supplementary Code. 

For these reasons this amendment to the above-named Supple- 
mentary Code has been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 

February 18, 1935. 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE SHEET METAL DISTRIBUT- 
ING TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

The Supplementary Code of Fair Competition for the Sheet 
Metal Distributing Trade, a division of the Wholesaling or Dis- 
tributing Trade, is hereby amended by substituting the words " three 
(3) or more Members " for the words " not more than three (3) 
Members ", in line two of Article III, Section 4, so that Section 4 
reads as follows : 

Section 4. The Divisional Code Authority shall cause to be 
selected a Regional Committee of three (3) or more Members for 
each of such regional areas as it may establish to act as its agent 
in handling such matters as may be referred to such Committee 
provided that nothing herein shall relieve the Divisional Code- 
Authority of any of its responsibilities under this Supplemental 
Code or under the General Code and provided further that such 
Regional Committee shall at all times be subject to and comply with 
the provisions hereof. 

Approved Code No. 201 P — Amendment No. 1. 
Kegistry No. 1135-03. 

(396) 



Approved Code No. 376 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

AIR VALVE INDUSTRY 

As Approved on February 19, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the Air 

Valve 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 Air Valve Industry, 
and opportunity to be heard having been noticed to all interested 
parties, and the annexed report on said amendment, containing find- 
ings with respect thereto, having been made and directed to the 
President ' 

NOW. THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order JSTo. 6859, dated September 27, 1934, and other- 
wise, does hereby incorporate, by reference, said annexed report and 
does find that said amendment and the Code as constituted after 
being amended compl}^ in all respects with the pertinent provisions 
and will promote the policy and purposes of said Title of said Act, 
and does hereby order that said amendment be and it is hereby 
approved, and tliat the previous approval of said Code is hereby 
amended to include an approval of said Code in its entirety as 
amended, provided however, that Subsections (h) and (i) of Section 
5, Article VI be deleted and the Subsections immediateh^ follow- 
ing be relettered to read (h) and (i) respectivelj% such approval 
and such amendment to take effect twenty (20) days from the date 
hereof, unless good cause to the contrary is shown to the National 
Industrial Recovery Board before that time and the National In- 
dustrial Recovery Board issues a subsequent order to that effect. 
National Industrial Recovery Board. 
By W. A, Harriman, Admimsfrative Officer. 

Approval recommended : 
Barton W. Murray, 

Division Admin htrat or. 

Washington, D. C, 

Febt-uary 19, 1936. 

(397) 



REPOKT TO THE PRESIDENT 

The President, 

The 'White House. 

Sir : This is a report on the amendment to the Code of Fair Com- 
petition for the Air Valve Industry, as submitted by the Code 
Authority of said Industry. An opportunity to be heard from 
December 7, 1934 to December 27, 1934 was duly noticed, in accord- 
ance with Article X, Section 3 of said Code, as a])proved March 
31, 1934. 

The amendment provides for mandatory contributions on an 
equitable basis by all members of the Industry. 

FINDIKGS 

The Assistant Deputy Administrator in his final report to the 
National Industrial Recovery Board on said amendment to said 
Code having found as herein set forth, and on the basis of all the 
proceedings in this matter ; 

It is found that : 

(a) The amendment to said Code and the Code as amended are 
well designed to promote tlie policies and purposes of Title I of the 
National Industrial Recovery Act, including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which 
teml to diminish the amount thereof, and will provide for the gen- 
eral welfare by promoting the organization of industry for the pur- 
pose of cooperative action among trade groups, by inducing and 
maintaining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by avoiding undue restriction of production (ex- 
cept as may be temporarily required), by increasing the consump- 
tion of industrial and agricultural products through increasing pur- 
chasing power, by reducing and relieving unemployment, by im- 
proving standards of labor, and by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(c) The Code 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. 

(398) 



399 

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

For these reasons, this amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 
Ferbuart 19, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE AIR YALVE INDUSTRY 

Purpose 

Pursuant to Article X, Section 3, of the Code of Fair Competi- 
tion for the Air Yalve Indastrv duly approved bv the Administrator 
on March 31, 1934, and further to eifectuate Title I of the National 
Industrial Recovery Act, the followinfr amendment is established as 
a part of said Code of Fair Competition and shall be binding upon 
every member of the Air Yalve Industry. 

Article YI — Okgaxization 

Amend Article YI by deleting Section 9 and substituting in lieu 
thereof section to read as follows : 

Sectiox 9. (a) It being found necessary in order to su])port the 
administration of this Code and to maintain the standards of fair 
competition established hereunder and to effectuate the policy of the 
Act, the Code Authority is authorized : 

(1) to incur such reasonable obligations as are necessary and 
pro])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 National Industrial Recovery Board for its 
approval, subject to such notice and opportunity to be heard as it 
may deem necessary, (1) an itemized budget of its estimated ex- 
penses for the foregoing purposes, and (2) an equitable basis upon 
which the funds necessary to support such budget shall be contrib- 
uted 1)3^ members of the Industry. 

(3) After such budget and basis of contribution have been ap- 
proved b}" the National Industrial Recovery Board, 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 j^ertaining thereto issued by the National Industrial 
Recovery Board. 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 con- 
tribution, shall be entitled to participate in the selection of members 
of the Code Authority or to receive the benefits of any of its volun- 
tary activities or to make use of any emblem or insignia of the 
National Recovery Administration. 

(400) 



401 

(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 
National Industrial Recovery Board; and no subsequent budget shall 
contain any deficiency item for expenditures in excess of prior 
budget estimates, except those which the National Industrial Recov- 
ery Board shall have so approved. 

Approved Code No. 376 — Amendment No. 1. 
Registry No. 1335-06. 



Approved Code No. 265 — Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

COFFEE INDUSTRY 

As Approved on February 19, 1935 



OKDER 



Approving Amendment of Code of Fair Compeiition for the 
Coffee Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to the Code of Fair Competition for the Coffee Industry, 
and an opportunity to be heard has been afforded to all interested 
parties and the annexed report on said amendment containinrj find- 
ings with respect thereto having been made and directed to the 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate 
by reference said annexed report and does find that said amend- 
ment 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 does 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 and such amendment to take effect ten days from the 
date hereof unless good cause to the contrary is shown to the Na- 
tional Industrial Recovery Board before that time and the said 
Board issues a subsequent order to that effect. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative O^cer. 

Approval recommended : 
Armin W. Riley, 

Division Administrator. 

Washington, D. C, 

Fehi^ary 10, 1936. 

(403) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on an amendment to Section 6 of Article IV 
to the approved Code of Fair Competition for the Coii'ee Industry, 
No. 265. This Code was approved on February 0, 1934. 

The Code Authority for the Coffee Industry, in accordance with 
Section 2 of Article XI of said Code, having found it necessary 
in order to maintain standards of fair competition, has made appli- 
cation for amendment of said Code. This amendment is deemed 
advisable inasmuch as the present provision of the Code comjjels the 
employer to pay the watchmen overtime for working on Sundays 
and holidays. Since watchmen are definitely engaged for the pur- 
pose of working on Sundays and holidays when the plant is not in 
use it is illogical and unfair to allow the payment of overtime to 
watchmen for working on such days. 

The Deputy Administrator in his final report to the National 
Industrial Recovery Board on said amendment to said Code having 
found as herein set forth and on the basis of all the proceedings 
in this matter : 

The National Industrial Recovery Board finds 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 mangement under 
adequate governmental sanction and supervision, by eliminating 
unfair competitive practices, by })romoting 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 consum{)tion of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof. 

(c) The 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 op- 
erate to discriminate against them. 

(404) 



405 

(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 the Code as amended has been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 

Administrative Officer. 
February 19, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
COFFEE INDUSTRY 

Amend Article IV, Section 6 by adding the words "night watch- 
men " after the words " or over " so that the amended section will 
read as follows: 

" Time and one-third shall be paid for all time workers (except by 
office workers receiving $35 per week or over, night watchmen and 
those classified as managerial, executive and technical employees in 
Section 1 (a) of Article III) on Sundays and the following holidays: 
Christmas Day, Thanksgiving Day, George Washington's Birthday, 
Labor Day, July Fourth, New Year's Day and su<;h other holidays as 
may be proclaimed by the President of the United States." 

Approved Code No. 265 — Ainondiueiit No. 2. 
Registry No. 111-1-01. 

(400> 



Approved Code No. 84W — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

MACHINE SCREW MANUFACTURING INDUSTRY 

As Approved on February 19, 1935 



ORDER 



Approving Amendment of Supplementary Code of Fair Competi- 
tion FOR THE Machine Screw 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 an amend- 
ment to a Supplementary Code of Fair Competition for the Machine 
Screw Manufacturing Industry, and a Notice of Opportunity to be 
Heard having been duly given thereon and the annexed report on said 
amendment, containing findings with respect thereto, having been 
made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including Exec- 
utive Order No. 6859, dated September 27, 1934, and otherwise, does 
hereby incorporate by reference, said annexed report and does find 
that said amendment and the Supplementary 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 does 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; provided, however, that the provi- 
sions of Article V, Section 2, insofar as they prescribe a waiting 
period between the filing with the Code Authority (or such agency 
as may be designated in the Code) and the effective date of price lists, 

123726—35 17 (4Q7) 



408 

as originally filed and/or revised price lists or revised terms and 
conditions of sale, be and they hereby are stayed pending further 
Order of the National Industrial Recovery Board. 

National Industrial, Recovery Board, 
By W. A. Harriman, Administrative 0-jJicer. 

Approval recommended: 

John W. Upp, 

Acting Division Adnninistrator. 

Washington, D. C. 

February 19, 1935. 



REPORT TO THE PRESIDENT 

The President, 

The White Eouee. 

Sir : An application has been duly made pursuant to and in full 
compliance with the provisions of the National Industrial Recovery 
Act for the deletion of Paragraphs K and L, and the amendment of 
Paragraph M of Article VII of the Supplementary Code of Fair 
Competition for the Machine Screw Manufacturing Industry, a divi- 
sion of the Fabricated Metal Products Manufacturing and Metal 
Finishing and Metal Coating Industry, by the Supplementary Code 
Authority for that Industry. 

The Supplementary Code of Fair Competition for the Machine 
Screw Manufacturing Industry was approved on May 10, 1&34. 
Article VII, Paragraphs K, L and a portion of Paragraph M, pro- 
hibits price protection on contracts. 

These methods of contract sale have been found to be unsuitable to 
the customers of the Industry and it is proposed to delete Paragraphs 
K and L and that portion of M which applies to price protection 
and pass this protection along to customers of the Industry. 

FINDINGS 

The Assistant Deputy Administrator in his final report to the 
National Industrial Recovery Board on said amendment of said 
Supplementary Code having found as herein set forth and on the 
basis of all proceedings in this matter : 

It has been found that : 

(a) The amendment of said Supplementary Code and the Supple- 
mentary 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 organiza- 
tion of industry for the purpose of co-operative action of labor and 
management under adequate governmental sanction and supervision, 
by eliminating unfair competitive practices, by promoting the full- 
est possible utilization of the present productive capacity of indus- 
tries, by avoiding undue restriction of production (except as may 
be temporarily required), by increasing the consumption of indus- 
trial and agricultural products through increasing purchasing 
poAver, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

(b) The Supplementary Code as amended complies in all re- 
spects with the pertinent provision of said title of said act, includ- 
ing without limitation sub-section (a) of Section 3, sub-section (a) 
of Section 7 and sub-section (b) of Section 10 thereof. 

(409) 



410 

(c) The Code empowers the Supplementary Code Authority to 
present the aforesaid amendment on behalf of the Industry 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. 

(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, the amendment has been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 

February 19, 1935. 



TiniYoiqiii 






AMENDMENT TO SUPPLEMENTARY CODE OF FAIR COM- 
PETITION FOR THE MACHINE SCREW MANUFACTUR- 
ING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTUIUNG AND 
METAL FINISHING AND METAL COATING INDUSTRY 

Delete Paragraphs K and L of Article VII and amend Paragi'aph 
M of Article VII to read as follows : 

" Making contracts at a specified price for an unspecified quantity 
for delivery as demanded by the buyer during the period unless 
the contract is for a fixed percentage of the total consumption re- 
quirements of the purchaser of the particular product; or making 
any such unspecified quantity contract above described except on a 
standard form or forms approved by the Supplementary Code Au- 
thority and the National Industrial Recovery Board; 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 contract in such form." 

Re-letter paragraph "M" to -K-; paragraph "N" to -L-; 
paragraph " O " to -M-; paragraph " P " to -N-; paragraph " Q " 
to -0-. 

Approved Code No. 84W — Amendment No. 1. 
Registry No. 1104-06. 

(411) 



Approved Code No. 315— Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

INDUSTRIAL SAFETY EQUIPMENT INDUSTRY 
AND INDUSTRIAL SAFETY EQUIPMENT TRADE 

As Approved on February 21, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the In- 
dustrial Safety Equipment Industry and Industrial Safety 
Equipment 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 the approval of an amend- 
ment to a Code of Fair Competition for the Industrial Safety Equip- 
ment Industry and Industrial Safety Equipment Trade, and oppor- 
tunity to be heard having been noticed to all interested parties, and 
the annexed report on said amendment, 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, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise: 
does hereby incorporate, by reference, said annexed report and 
does 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 does 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. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended 
Barton W. Murray, 

Division Administrator. 

Washington, D. C, 

Felruary U, 1935. 

(413) 



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 Industrial Safety Equipment Industry and Industrial 
Safety Equipment Trade. In accordance with the requirements of 
the National Recovery Administration, due opportunity to be heard 
was afforded to all interested persons, and all objections received were 
given due consideration. 

This Amendment is designed to effectuate an open price policy. 

FINDINGS 

The Assistant Deputy Administrator in his final report on said 
Amendment to said Code liaving found as herein set forth and on 
the basis of all the proceedings in this matter; 

The National Industrial Recovery Board finds that: 

(a) The Amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act, including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the 
general welfare by promoting the organization of industry for the 
purpose of cooperative action 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 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 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 
Ajnendment. 

For these reasons, therefore, the Board has approved this Amend- 
ment. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Ojftcer. 
February 21, 1935. 

(414) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE INDUSTRIAL SAFETY EQUIPMENT INDUSTRY 
AND INDUSTRIAL SAFETY EQUIPMENT TRADE 

Amend Article VII by deleting Section 6 (g) and substituting in 
lieu thereof, the following : 

(g) Ofen Price Policy. — (1) When any group manufacturing 
and/or selling specified products of this Industry and/or Trade 
decide by majority vote of such group, that it is desirable to adhere 
to a policy of published prices for each individual member of the 
group, it shall be mandatory for each member of the group to adhere 
to this policy and each member of the product group shall file with 
a confidential and disinterested agent of the Code Authority or, if 
none, then with such an agent designated by the National Industrial 
Recovery Board, identified lists of all of his prices, discounts, re- 
bates, allowances, and all other terms or conditions of sale, herein- 
after in this Subsection referred to as " price terms ", which lists 
shall completely and accurately conform to and represent the indi- 
vidual pricing practices of said member. Such lists shall contain 
the price terms for all such standard products of the product group 
as are sold or offered for sale by said member and for such of said 
member's non-standard products of said product group as shall be 
designated by the Code Authority. Said price terms shall in the 
first instance be filed within ten days after the date established by 
the product group as the effective date for such first price filing. 
Price terms and revised price terms shall become effective immedi- 
ately 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 revi- 
sions, together with the effective time thereof, shall upon receipt be 
immediately and simultaneously distributed to all members of the 
product group and to all of their customers who have applied there- 
for and have offered to defray the cost actually incurred by the 
Code Authority in the preparation and distribution thereof and be 
available for inspection by any of their customers at the office of 
such agent. Saicl lists or revisions or any part thereof shall not be 
made available to any person until released to all members of the 
product group and their customers, as aforesaid; provided, that 
prices filed in the first instance shall not be released until the expira- 
tion of the aforesaid ten day period after the date established by the 
product group as the effective date for such first price filing. 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 National Industrial Re- 
covery Board. Upon request the Code Authority shall furnish to 
the National Industrial Recovery Board or any duly designated 
agent of said Board copies of any such lists or revisions of price 
terms. 

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

(3) No member of the product group shall sell or offer to sell any 
products of the product group, for which price terms have been filed 

(415) 



416 

pursuant to the provisions of this Subsection, except in accordance 
with such price terms. 

(4) No member of the product group 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 product 
group 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 Subsection to create. 

Approved Code No. 315 — Amendment No. 2. 
Registry No. 1399-24. 



Approved Code No. 93 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WASHING AND IRONING MACHINE MANUFAC- 
TURING INDUSTRY 

As Approved on February 21, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Washing and Ironing Machine Mantifacturing Industry 

All application having been duly made pursuant to and in full com- 
pliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for the Washing and Ironing 
Machine Manufacturing Industry, and hearings having been duly 
held thereon and the annexed report on said Amendment, containing 
findings with respect thereto, having been made and directed to the 
President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate, by 
reference, said annexed report and does find that said Amendment 
and the Code as constituted after being amended comply in all 
respects with the pertinent provisipns and will promote the policy 
and purposes of said Title of said Act, and does hereby order 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 does hereby 
order that said Amendment be and it is hereby approved, and that 
the previous approval of said Code as amended is hereby modified to 
include an approval of said Code in its entirety as amended. 

National Industrial Recovery Board, 
By W. A. Harriman, Adrnmistrative Officer. 

Approval recommended : 
John W. Upp, 

Acting Division Ad7ninistrato7\ 

Washington, D. C, 

February 21, 1935. 

(417) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Code Authority for the Washing and Ironing Machine 
Manufacturing Industry on July 23, 1934 submitted an application 
for an amendment to the Code of Fair Competition for the said 
Industry. The purpose of the proposed amendment was to correct, 
in so far as possible, existing inequities. 

A public hearing was held in Washington on August 20, 1934 
pursuant to the provisions of the National Industrial Recovery Act. 
Every person who requested an appearance was heard in accordance 
with statutory and regulatory requirements. 

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

It is found 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 
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, by increasing the consumption of indus- 
trial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provision of said title of said act, including without limitation 
subsection (a) of section 3, subsection (a) of section 7 and subsection 
(b) of section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendment on behalf of the industry as a whole. 

(d) The amendment and the Code as amended are not designed to 
and will not permit 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, this Amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Adininistrative Officer. 
February 21, 1935. 

(418) 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE WASHING AND IRONING MACHINE MANUFAC- 
TURING INDUSTRY 

Item 1. Delete Paragraph 4 of Article VII, Subsection A. 
Item 2. Change the present titular numbers 5, 6, T, and 8 to 4, 

5, 6, and 7 respectively. 

Item 3. Amend the present Paragraph 7 (changed to paragraph 

6, pursuant to above Item 2) to read as follows : 

" 7. Guarantee. — The giving of any guarantee in excess of one 
year from date of sale to replace defective parts or workmanship." 

Approved Code No. 93 — Amendment No. 4. 
Registry No. 1399-1-11. 

(419) 



Approved Code No. 84B1 — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

JOB GALVANIZING METAL COATING INDUSTRY 

As Approved on February 25, 1935 



ORDER 



Approving Amendment of Supplementary Code of Fair Compe- 
tition FOR THE Job Galvanizing Metal Coating 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 an Amend- 
ment to the Supplementary Code of Fair Competition for the Job 
Galvanizing Metal Coating Industry, and a Notice of Opportunity to 
b(B Heard having been duly given thereon and the annexed report 
on said Amendment, containing findings with respect thereto, having 
been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and other- 
wise, does hereby incorporate by reference said annexed report and 
does 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 does hereby order that said Amendment be 
and it is 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; provided, 
however, that this Amendment shall not become effective until 
thirty days from the date hereof. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
John W. Upp. 

Acting Dlmsion Administrator. 

Washington, D. C, 

Fehniarij 25, 1936. 

(421) 



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, by the Supplemental Code Authority for the Job 
Galvanizing Metal Coating Industry for an amendment to the Sup- 
plementary Code of Fair Competition for the Job Galvanizing 
Metal Coating Industry, approved May 17, 1934, a Division of the 
Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating Industry. 

The purpose and effect of this amendment is to require members 
of the industry to sell in accordance with filed prices. Heretofore 
they have been filing maximum discounts, which created a minimum 
price and permitted them to sell at any price in excess of the filed 
price. This amendment is in conformity with the present policy 
of the National Recovery Administration. 

The Deputy Administrator in his final report to me on said 
amendment 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 amoimt 
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 promot- 
ing the fullest possible utilization of the present productive capacity 
of industries, by avoiding undue restriction of production (except 
as may be tem.porarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

(b) The Supplementary Code as amended complies in all respects 
with the pertinent 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 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 Supplementary Code as amended 
are not designed to and will not permit monopolies or monopolistic 
practices. 

(422) 



423 

(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 the foregoing reasons this amendment to the Supplementary 
Code of Fair Competition for the Job Galvanizing Metal Coating 
Industry has been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 
February 25, 1935. 



123726—35 18 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE JOB GALVANIZING METAL 
COATING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTUEINQ AND 
METAL FINISHING AND METAL COATING INDUSTRY 

Amend Article VII, Section (c) to read as follows: 
" No member of the Industry shall sell or offer to sell, directly 
or indirectly, by any means whatsoever, any product of this Industry, 
covered by provisions of this Article VII, at a price or at discounte, 
or on conditions of sale different than those provided in his own 
current net price lists, or price lists and discount sheets." 

Approved Code No. 84B1 — Amendment No. 1. 
Registry No. 1135-21. 

(424) 



Approved Code No. Ill — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

AIR TRANSPORT INDUSTRY 

As Approved on February 26, 1935 



ORDER 



AppROAnNG Amendment of Code of Fair Competition for the Aib 

Transport Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Indus- 
trial Recover}" Act, approved June 16, 1933, for approval of amend- 
ments to the Code of Fair Competition for the Air Transport In- 
dustry, and an opportunity to be heard having been duly afforded 
all interested parties 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and other- 
wise; does hereby incorporate, by reference, said annexed report 
and does 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 does 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 en- 
tirety as amended. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative OffiGer. 

Approval recommended : 
L. H. Peebles, 

Division Administrator. 

Washington, D. C, 

FebTuary 26, 1935. 

(425) 



REPORT TO THE PRESIDENT 

The President, 

The 'White House. 
Sir : An application has been duly made pursuant to and in full 
compliance with the National Industrial Recovery Act for the 
amendment of Section 3 of Article II and for the amendment of 
Article VII of the Code of Fair Competition for the Air Transport 
Industry for the following purposes: 

1. The inclusion of the territory of Hawaii in the territory covered 
by the definition of the term " Industry ", thus applying the perti- 
nent provisions of the Air Transport Code to the Air Transport 
Industry in Hawaii. 

2. The addition of a new Section covering Publicity and Adver- 
tising Fair Trade Practices to Article VII as amended. 

These amendments are submitted in the form as revised by the 
Code Authority, no objections, criticisms or suggestions having been 
received during the period provided in the Notice of Opportunity 
to be Heard published January 16, 1935. 

FINDINGS 

The Deputy Administrator in his final report to us said amend- 
ments to said Code having found as herein set forth and on the 
basis of all the proceedings in this matter: 

We find that: 

(a) The amendments to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and main- 
taining united action of labor and management under adequate gov- 
ernmental sanction and supervision, by eliminating unfair competi- 
tive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by in- 
creasing the consimiption 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) 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. 

(426) 



427 

(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. 

(g) The territory of Hawaii properly belongs in the territory 
covered by the Code. 

(h) Provisions of proposed amendment to Article VII dealing 
with false advertising and misrepresentation are reasonable and 
well adapted for the correction of certain unfair trade practices in 
this Industry. 

For these reasons, these amendments have been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Adrninistrative Officer. 
February 26, 1935. 



AlVIENDMENT TO CODE OF FAIR COMPETITION FOR 
THE AIR TRANSPORT INDUSTRY 

Section 3 of Article II of the Code of Fair Compttition for the 
Air Transport Industry shall be amended so as to inclade the terri- 
tor}^ of Hawaii in the territory included in the Section so that the 
said Section will read as follows: 

" The term ' Industry ' includes all public carriers for hire by 
aircraft for passengers, and/or mail, and/or cargo on scheduled 
operations and services incidental thereto within the several States 
of the United States, the District of Columbia, and the territories 
of Alaska and Hawaii, and such branches or subdivisions thereof 
as may, from time to time, be included by the President under the 
provisions of this Code, but does not include scheduled operations 
and/or services incidental thereto not within the several States of 
the United States, the District of Columbia, and the territories 
of Alaska and Hawaii." 

The ,Code of Fair Competition for the Air Transport Industry 
shall be amended b}' adding to Article VII a new Section, as 
follows : 

" Publicity and Advertising. — No member of the Industry shall 
either directly or through an agent publish or contract for the pub- 
lishing of advertising (whether printed, radio, display or of any 
other nature) which is misleading or inaccurate in any material 
particular; nor in any way misrepresent any values, policies or 
services, or the nature or form of the business conducted." 

Approved Code No. Ill — Amendment No. 3. 
Registry No. 1741-2-04. 

(428) 



Approved Code No. 64 — Amendment No. 7 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

DRESS MANUFACTURING INDUSTRY 

As Approved on February 26, 1935 



ORDER 



Approving Amendment or Code of Fair Competition for the Dress 
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 Dress Manufacturing 
Industry, and an opportunity to be heard having been afforded 
thereon, and the annexed report containing findings with respect 
thereto having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive order No. 6859, dated September 27, 1934, and otherwise, 
does hereby incorporate by reference said annexed report and does 
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 
does hereby order that said amendment be and it is hereby approved, 
and that the previous approval of said Code is hereby amended to in- 
clude an approval of said Code in its entirety as amended, such ap- 
proval to take effect twenty (20) days from the date hereof, unless 
good cause to the contrary is shown to the National Industrial Re- 
covery Board before that time and the National Industrial Recovery 
Board issues a subsequent order to that effect. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Oflcer. 

Approval recommended : 
Prentiss L. Coonley, 

Division Administrator. 

Washington, D. C. 

February 26, 1935. 

(429) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Code Authority for the Dress Manufacturing Industry 
submitted a proposed amendment to the Code of Fair Competition 
for the Dress Manufacturing Industry. This amendment was pre- 
sented to the Legal Division, the Industrial Advisory Board, the 
Division of Research and Planning, the Consumers Advisory Board 
and the Labor Advisory Board and received their approval. 

As this amendment was in accordance with standard form and 
consistent with the policies of the Administration, a Public Hearing 
was considered unnecessary, and in lieu thereof a Notice of Oppor- 
tunity to be Heard was printed and distributed in the same manner 
as a Notice of Public Hearing. A specified date was set forth in 
such Notice, by which time objections and criticisms were to be receiv- 
ed relative to this amendment. 

The amendment prohibits the employment of persons under 
eighteen (18) years of age at operations or occupations which are 
hazardous in nature or dangerous to health. 

The Deputy Administrator in his final report to the National 
Industrial Recovery Board on said amendment to said Code having 
found as herein set forth and on the basis of all proceedings in this 
matter : 

The National Industrial Recovery Board finds that: 

(a) The amendment to said Code and the Code as amended arsi 
well designed to promote the policies and purposes of Title I of 
the National 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 purpose of 
cooperative action of labor and management under adequate govern- 
mental 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 
increased purchasing power, by reducing and relieving unemploy- 
ment, by improving standards of labor and otherwise rehabilitating 
industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10, thereof. 

(c) The Code 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. 

(43P) 



431 

(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 will 
not have been deprived of the right to be heard prior to the effective 
date of this amendment. 

For the National Industrial Recovery Board: 

W. A. Harriman, 
Administratvve Officer. 
February 26, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE DRESS I^IANUFACTURING INDUSTRY 

Article V, Section 1, of the Code of Fair Competition for the Dress 
Manufacturing Industry is amended so as to read as follows : 

No person under sixteen years of age shall be employed in the 
Dress Manufacturing 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 Administration for approval within 
sixty (60) days after the approval of this Amendment 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. 

Approved Code No. 64 — Amendment No. 7. 
Registry No. 228-01. 

(432) 



Approved Code No. 141 — Amendment No. 4 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR 

INVESTMENT BANKERS 

As Approved on February 27, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for 
Investment Bankers 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to Section 4 of Article V of Amendment No. 2 of the Code of 
Fair Competition for Investment Bankers, which is attached hereto 
and hereby made a part hereof, and Notice of Opportunity to be 
Heard having been afforded to all interested parties, and any objec- 
tions filed having been duly considered and the annexed report on 
said amendment, containing findings with respect thereto, having 
been made and directed to the President : 

NOW. THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No, 6859 dated September 27, 1934, and otherwise; 
does hereby adopt and incorporate, by reference, said annexed report 
and does concur in and adopt the findings of fact made therein, 
and does 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 does hereby order that said amendment, which is attached hereto 
and made a part hereof, be and it is hereby approved, and that the 
previous approvals of said Code and said Amendment No. 2 are 
hereby modified to include an approval of said Code in its entirety 
as amended. 

National Industrial Recovery Board, 
By L. C. Marshall, Executive Secretary. 

Approval recommended : 
L. H. Peebles, 

Division Administrator. 

Washington, D. C, 

Fehruary 27, 1935. 

(433) 



REPORT TO THE PRESIDENT 

The President, 

The ^YhUe Bouse. 

Sir: An application has been duly made pursuant to and in 
full compliance with the provisions of the National Industrial 
Recovery Act for the amendment of Amendment No. 2 of the Code 
of Fair Comjjetition for Investment Bankers for the following 
purposes : 

The addition of a new Sub-Section (e) to Section 4 of Article 
V to require that in order to receive a concession on each purchase of 
securities the investment banker (other than a member of the selling 
syndicate or selling group organized in connection with the dis- 
tribution of the issue of securities in question) must sign a certificate 
which will indicate that said investment banker is performing a 
service for which he is entitled to the concession. 

The Code of Fair Competition for Investment Bankers was ap- 
proved on November 27, 1933. Amendment No. 2 of this Code con- 
tains all of the Fair Trade Practice provisions and was approved 
on March 23, 1934. 

The Code provides that where new securities are being distributed 
through a selling sj'ndicate or selling group there can be only one 
price at which the new securities can be offered to the public during 
the life of the selling syndicate or selling group, the intent being 
to avoid an}^ preference or discrimination in sales to investors. 
However, the Code provides that another investment banker may 
have the concession from such public offering price if and to the 
extent that the selling syndicate or selling group agreement author- 
izes such concession. Since certain purchasers, notably banks in 
the normal course of their business, purchase new issues of securities, 
either for redistribution or for their own investment account or 
both, they are as a class in the dual capacity of distributors and 
investors. Therefore, such purchasers, under the Code as now writ- 
ten, when purchasing solely for their own investment account, are 
in a position of receiving preference as compared with other in- 
vestors. 

The proposed amendment would require that before a concession 
could be given to an investment banker (other than a member of the 
selling syndicate or selling group organized in connection with the 
distribution of the issue of securities in question) he must certify that 
he is purchasing the securities either (1) solely for the account of 
clients, or (2) for his own account but with the intention of redis- 
tributing the securities to his clients in the ordinary course of his 
business. No certificate is required of participants in the selling 
syndicate or members of the selling group, because the necessary 
control is included in the syndicate or group agreements. 

The effect of the amendment would be to consistently maintain 
the principle of no discrimination between investors by putting all 
investment bankers on a level with private investors when they pur- 
chase securities solely for investment and not for distribution. It 
proceeds on the theory that an investment banker is entitled to a lower 
price than that available to the public only when that investment 

(434) 



435 

banker actively participates in the distribution to others of the securi- 
ties in question. 

FINDINGS 

The Deputy Administrator in his report to the National Industrial 
Recovery Board on said amendment of said Amendment No. 2 of said 
Code having found as herein set forth and on the basis of all of the 
proceedings in this matter: 

The National Industrial Recovery Board jfinds that: 

(a) The amendment of said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and maintain- 
ing united action of labor and management under adequate govern- 
mental sanction and supervision, 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) The effect of the amendment will be to consistently maintain 
the principle of no discrimination between investors by putting all 
investment bankers on a level with private investors when they 
purchase securities solely for investment and not for distribution. 

(c) The amendment will eliminate unfair competitive practices 
by prohibiting the granting of a concession by a selling investment 
banker to any purchaser where such concession is merely an induce- 
ment for the purchaser to purchase securities from said investment 
banker rather than the recognition that the purchaser will perform 
a service in the distribution of the securities which entitles him to 
such concession. 

(d) 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. 

(e) The Code empowers the Code Committee to present the afore- 
said amendment on behalf of the Industry as a whole. 

(f) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(g) 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. 

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

For these reasons, therefore, this amendment has been approved. 
For the National Industrial Recovery Board : 

L, C. Marshall, 

Executive Seci'etary. 
February 27, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
INVESTMENT BANKERS 

Amend Article Y, Section 4, of Amendment No. 2 of the Code of 
Fair Competition for Investment Bankers: Add the following new 
Sub-section to be known as Sub-section (e) : 

(e) No investment banker (other than a member of the selling 
syndicate or selling group organized in connection with the distri- 
bution of the issue of securities in question) shall be allowed a com- 
mission or concession by such selling syndicate or selling group, 
nor shall any investment banker, (other than as af oresaid) , _ be 
allowed a commission or concession by a participant in such selling 
syndicate or by a member of such selling gi-oup as provided in para- 
graph (b) of this section, unless the investment banker receiving 
such commission or concession shall furnish to the manager of the 
selling syndicate or selling group or to such participant in the sell- 
ing syndicate or such member in the selling group at the time of 
the confirmation of the purchase or the entering of a subscription 
in connection with which such commission or concession is or is to 
be received, or prior to the date of confirmation of sale or of allot- 
ment, a certificate in a form to be approved by the Code Commit- 
tee and signed by such investment banker stating he claims a com- 
mission or concession upon the purchase of the security in question 
and that such security is being acquired either (1) solely for the 
account of clients, or (2) for such investment banker's own account 
but with the intention of redistributing such security to clients in 
the ordinary course of his business. 

Approved Code No. 141 — Amendment No. 4. 
Registry No. 1707-04. 

(436) 



Approved Code No. 84T — Amendment No. 1 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

MACHINE SCREW NUT MANUFACTURING 
INDUSTRY 

As Approved on February 27, 1935 



ORDER 



Approving Amendment of Supplementary Code of Fair Competi- 
tion FOR the Machine Screw Nut 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 an amend- 
ment to the Supplementary Code of Fair Competition for the 
Machine Screw Nut Manufacturing Industry, and a Notice of Op- 
portunity to be Heard having been duly given thereon, and the 
annexed report on said amendment, containing findings with respect 
thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate 
by reference said annexed report and does 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 does 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. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. . 

Approval recommended: 
John W. Upp, 

Acting Division Administrator. 

Washington, D. C, 

Fehruary 27, 1935. 

(437) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sib: 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 VII of the Supplementary Code 
of Fair Competition for the Machine Screw Nut Manufacturing 
Industry, a division of the Fabricated Metal Products Manufac- 
turing and Metal Finishing and Metal Coating Industry, by the 
Supplementary Code Authority for that Industry. 

The Supplementary Code of Fair Competition for the Machine 
Screw Nut Manufacturing Industry was approved on May 5, 1934. 
The proposed amendment provides for the deletion of paragraphs K 
and L of Article VII and amending paragraph M of Article VII 
by the deletion of that part of said paragraph M which reads as 
follows : " and unless it is agreed in such contract that sj^ecifications 
placed during the last third period thereof shall not exceed the total 
pieces specified for shipment during the first two-thirds thereof." 
Paragraphs K, L and M of Article VII are provisions pertaining 
to the making of contracts of sale. 

FINDINGS 

The Assistant Deputy Administrator in his final report to the 
National Industrial Recovery Board on said amendment of said 
Supplementary Code having found as herein set forth and on the 
basis of all proceedings in this matter: 

It has been found that — 

(a) The amendment of 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 of 
labor and management under adequate governmental sanction and 
supervision, by eliminating unfair competitive practices, by pro- 
moting the fullest possible utilization of the present productive 
capacity of industries, by avoiding undue restriction of production 
(except as may be temporarily required) ^ by increasing the consump- 
tion of industrial and agricultural products through increasing pur- 
chasing power, by reducing and relieving unemployment, by improv- 
ing standards of labor, and by otherwise rehabilitating industry. 

(b) The Supplementar}'^ Code as amended complies in all respects 
with the pertinent provisions of said Title of said Act, including 

(438) 



439 

without limitation subsection (a) of Section 3, subsection (a) of 
Section 7 and subsection (b) of Section 10 thereof. 

(c) The Supplementary Code empowers the Code Authority to 
present the aforesaid amendment on behalf of the industry 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. 

(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, the amendment has been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 

February 27, 1935 



123726—35 19 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR COM- 
PETITION FOR THE MACHINE SCREW NUT MANUFAC- 
TURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 
METAL FINISHING AND METAL COATING INDUSTRY 

Delete Paragraphs K and L of Article VII and amend Paragraph 
M of Article VII to read as follows : 

Making contracts at a specified price for an unspecified quantity 
for delivery as demanded by the buyer during the period unless the 
contract is for a fixed percentage of the total consumption require- 
ments of the purchaser of the particular product; or making any 
such unspecified quantity contract above described except on a stand- 
ard form or forms approved by the Supplementary Code Authority 
and the National Industrial Recovery Board ; 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 contract in such form. 

Re-letter Paragraph " M " to -K-; Paragraph " N " to -L-; Para- 
graph " O " to -M-; Paragraph " P " to -N-; Paragraph " Q" to 
-0-. 

Approved Code No. 84T — Amendment No. 1. 
Registry No. 1104-09. 

(440) 



Approved Code No. 84L1— Amendment No. 2 

AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION 

FOR THE 

COMPLETE WIRE AND IRON FENCE INDUSTRY 

As Approved on March 1, 1935 



ORDER 



Approving Amendment of Supplementary Code of Fair Competi- 
tion FOR THE Complete Wire and Iron Fence 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 an amend- 
ment to a Supplementary Code of Fair Competition for the Com- 
plete Wire and Iron Fence Industry, and a Notice of Opportunity 
to be Heard having been duly given thereon and the annexed report 
on said amendment, containing findings with respect thereto, having 
been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive orders of the President, includino- 
Executive Order No. 6859, dated September 27, 1934, and otherwise', 
does hereby incorporate by reference, said annexed report and does 
find that said amendment and the Supplementary Code as consti- 
tuted 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 does hereby order that said amendment be and it is 
hereby approved, and that the previous approval of said Supple- 
mentary Code is hereby modified to include an approval of said 
Supplementary Code in its entirety as amended. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended: 
John W. Upp, 

Acting Division Administrator. 

Washington, D. C, 

March 1, 1935. 

(441) 



REPORT TO THE PRESIDENT 

The President, 

The White Home. 

Sir: An application has been duly made pursuant to and in full 
compliance with the provisions of the National Industrial Act for an 
amenchnent to Article VII of the Supplementary Code of Fair Com- 
petition for the Complete Wire and Iron Fence Industry, a division 
of the Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating Industry, by the Supplementary Code Au- 
thority for that Industry. 

The Supplementary Code of Fair Competition for the Complete 
Wire and Iron Fence Industry was approved on July 3, 1934. 

Findings 

The Assistant Deputy Administrator in his final report to the 
National Industrial Recovery Board on said amendment of said 
Supplementary Code having found as herein set forth and on the 
basis of all proceedings in this matter : 

It has been found that: 

(a) The amendment of 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 co-operative action of 
labor and management under adequate governmental sanction and 
supervision, by eliminating unfair competitive practices, by pro- 
moting 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 con- 
sumption of industrial and agricultural products through increas- 
ing 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 re- 
spects with the pertinent provision of said title of said act, including 
without limitation sub-section (a) of Section 3, sub-section (a) of 
Section 7 and sub-section (b) of Section 10 thereof. 

(c) The Code empowers the Supplementary Code Authority to 
present the aforesaid amendment on behalf of the Industry as a 
whole. 

(d) The amendment and the Supplementary Code as amended 
are not designed to and will not permit monopolies or monopolistic 
practices. 

(442) 



443 

(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, the amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 
March 1, 1935. 



AMENDMENT TO SUPPLEMENTARY CODE OF FAIR 
COMPETITION FOR THE COMPLETE WIRE AND IRON 
FENCE INDUSTRY 

A DIVISION or THE FABRICATED METAL PRODUCTS MANUFACTURING AND 
METAL FINISHING AND METAL COATING INDUSTRY 

Amend Article VII by adding the following : 

Section 5. The provisions of this Article VII shall not apply to 
direct export sales of any product or to sales of any product destined 
ultimately for export. The term " export " shall include all ship- 
ments to all places without the several states of the United States 
and the District of Columbia. 

Approved Code No. S4L1 — Amendment No. 2. 
Registry No. 1113-01. 

(444) 



Approved Code No. 1 — Amendment No. 14 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

COTTON TEXTILE INDUSTRY 

As Approved on March 2, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Cotton Textile Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amendment 
to a Code of Fair Competition for the Cotton Textile Industry, and 
an opportunity to be heard thereon having been given and the an- 
nexed report on said amendment, containing findings with respect 
thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive orders of the President, including Execu- 
tive Order No. 6859, dated September 27, 1934, and otherwise, does 
hereby incorporate, by reference, said annexed report and does 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 does 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. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Ofjlcer. 

Approval recommended: 
Prentiss L. Coonley, 

Division A dminis trator. 

Washington, D. C, 

March 2, 1935 

(445) 



REPORT TO THE PRESIDENT 

The President, 

Tlie White House. 

Sir: This is a report on an amendment to the Trade Practices 
Governing the Merchandising of the Products of the Cotton Thread 
Manufacturing Branch of the Cotton Textile Industry, approved 
July 17, 1934. Notice of Opportunity to be Heard on this amend- 
ment was published on Januar}^ 31, 1935 ; no objections were re- 
ceived within the twenty day period ending February 20, 1935. The 
amendment, which is attached, was presented by duly qualified and 
authorized representatives of the Industry, complying with statu- 
tory requirements, and being the duly constituted Code Authority 
under the provisions of the said Code for the said Industry. 

This amendment deletes existing Section 8 of the Trade Practices 
Governing the Merchandising of the Products of the Cotton Thread 
Manufacturing Branch and substitutes therefor a new Section 8, 
This new Section clarifies the former provision governing the dis- 
tribution of samples of cotton thread and its purpose is to prevent 
the giving of sami)les of thread by members of the Industry as an 
integral part of a sale or as a means of making any specific sale. 
Section 8 as amended will not interfere with the customary practices 
prevailing in the Industry concerning the distribution of samples. 

The Deputy Administrator in his final report to the National In- 
dustrial Recovery Board on said amendment to said Code having 
found as herein set forth, and on the basis of all the proceedings in 
this matter; 

The National Industrial Recovery Board finds 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 gi'oups, 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 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 the 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 limita- 

(446) 



447 

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 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 
amendment. 

For these reasons this amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Adnninistrative Officer, 
March 2, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 
COTTON TEXTILE INDUSTRY 

Delete Section 8 of the Fair Trade Practices Governing the Mer- 
chandising of the Products of the Cotton Thread Manufacturing 
Branch and add in lieu thereof a new Section 8 to read as follows : 

" 8. Sainples — Whereas, the giving of free trial samples of cotton 
thread to customers or prospective customers of members of the 
Industry for the j^urpose of obtaining business is not in itself a trade 
abuse, it is an unfair trade practice if any quantity of cotton thread 
other than trial samples is given by a member of the Industry as an 
integral part of a sale or as a means of making any specific sale. 
Any of the aforesaid free trial samples shall be marked as required 
by the provisions of Section 12 hereof." 

Approved Code No. 1 — Amendment No. 14. 
Registry No. 299-25. 

(448) 



Approved Code No. 64 — Amendment No. 8 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

DRESS MANUFACTURING INDUSTRY 

As Approved on March 2, 1935 



OKDER 



Approving Amendment of Code of Fair Competition for the Dress 
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 Dress Manufacturing 
Industry, and hearings having been duly held thereon and the an- 
nexed report on said amendment, containing findings with respect 
thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise, 
does hereby incorporate, by reference, said annexed report and does 
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 
does 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 is hereby amended to include an 
approval of said Code in its entirety as amended, such approval and 
such amendment to take efi'ect twenty (20) days from the date hereof, 
unless good cause to the contrary is shown to the National Industrial 
Recovery Board before that time and the National Industrial Recov- 
ery Board issues a subsequent order to that eifect. 

National Industrial RECO^'ZRY Board, 
By W. A. Hakriman, Administrative Officer. 

Approval recommended : 
Prentiss L. Coonley, 

Division Administrator. 

Washington, D. C, 

March 2, 1935. 

(449) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : On June 18, 1934, a joint public hearing was held on a pro- 
posed amendment to the Codes of Fair Competition for the Cotton 
Garment Industry and the Dress Manufacturing Industry. The na- 
ture of this proposed amendment was to clarify certain general and 
vague definitions contained in each of these codes in reference to the 
manufacture of inexpensive dresses made of material of which cot- 
ton is the chief content and generally known in the trade as a house 
dress or house dresses. 

In accordance with the information and facts brought out at this 
hearing, the Code of Fair Competition for the Cotton Garment 
Industry was subsequently amended on September 27, 1934, insofar 
that in Article II, Section A, Item (8) of said Code the words 
" cotton wash dresses " were stricken out and the words " dresses of 
linen or of chief content of cotton selling at wholesale to the retailer 
up to and including $22.50 per dozen " were inserted. 

In order to synchronize the Code of Fair Competition for the Dress 
Manufacturing Industry with the Code of Fair Competition for the 
Cotton Garment Industry as amended on September 27, 1934, it is 
deemed advisable to approve this amendment. This amendment 
amends Article II, Section 1 of the Code of Fair Competition for the 
Dress Manufacturing Industry insofar that in said Article and Sec- 
tion the words " provided that nothing in this definition shall include 
the manufacture of inexpensive dresses made of material of which 
cotton is the chief content and generally known in the trade as a house 
dress or house dresses " are stricken out and the words " provided that 
nothing in this definition shall include the manufacture of dresses of 
linen or of chief content of cotton selling at wholesale to the retailer 
up to and including $22.50 per dozen " are inserted. 

In accordance with the counsel of the Legal Division, notices of 
opportunity to be heard were printed and distributed in the same 
manner as Notices of Public Plearing. A specified date was set forth 
in such Notices, by which time objections and criticisms were to be 
received relative to this amendment. 

The Deputy Administrator in his final report to the National In- 
dustrial Rec(n'ery Board on said amendment to said Code having 
found as herein set forth and on the basis of all proceedings in this 
matter : 

The National Industrial Recovery Board finds that : 

(a) The amendment to said Code and the Code as amended are well 
designed to promote the policies and purposes of Title I of the Na- 
tional 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 purpose of cooperative 

(450) 



451 

action of labor and management under adequate governmental sanc- 
tions and supervision, by eliminating unfair competitive practices, by 
promoting the fullest possible utilization of the present productive 
capacity of industries, by avoiding undue restriction of production 
(except as may be temporarily required), by increasing the consump- 
tion of industrial and agricultural products through increased pur- 
chasing power, by reducing and relieving unemployment, by improv- 
ing standards of labor, and by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10, thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendment on behalf of the Industry as a whole. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed to 
and will not eliminate or oppress small enterprises and will not oper- 
ate to discriminate against them. 

(f ) Those engaged in other steps of the economic process will not 
have been deprived of the right to be heard prior to the effective date 
of this amendment. 

For these reasons this amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Haeriman, 

Administrative 0-fficer. 
March 2, 1935. 



amend:ment to code of fair competition for 
the dress manufacturing industry 

Article II, Section 1, of the Code of Fair Conipetition for the 
Dress Manufacturing Industry shall be amended to read as follows : 

The term " Dress Manufacturing Industry " as used herein in- 
cludes the manufacture and sale by the manufacturer (as defined 
in paragraphs 6 and 7 of this Article) in whole or in part, in the 
United States on the North American Continent, of women's, misses' 
and juniors' dresses, dressmakers' ensembles, and waists when used 
with ensembles, whether such manufacture and distribution shall 
be by inside or outside manufacturers, contractors, or otherwise ; pro- 
vided that nothing in this definition shall include the manufacture 
of dresses of linen or of chief content of cotton selling at whole- 
sale to the retailer up to and including $22.50 per dozen. 

Approved Code No. 64 — Amendment No. 8. 
Registry No. 228-01. 

(452) 



Approved Code No. 175 — ^Amendment No. 2 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOB THE 

MEDIUM AND LOW PRICED JEWELRY 
MANUFACTURING INDUSTRY 

As Approved on March 4, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Medium and Low Priced Jewelry Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for the Medium and Low 
Priced Jewelry Manufacturing Industry, said amendment being to 
eliminate subsection (c) of Section 1 of Schedule A of said Code, 
and hearings having been duly held thereon and the annexed report 
on said amendment, 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, the National Industrial Recovery Board, pursuant to author- 
ity vested in said Board by Executive Orders of the President, 
including Executive Order No. 6859, dated September 27, 1934, and 
otherwise ; does hereby incorporate, by reference, said annexed 
report and does 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 does 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. 

National Industrial RECO%rERY Board, 
By W, A. Harriman, Administrative Officer. 
Approval recommended : 
John W. Upp, 

Acting Division Ad^ninistrator. 
Washington, D. C, 

March 4, 1935. 

(453) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : Public Hearing on an amendment to the Code of Fair Com- 
petition for the Medium and Low Priced Jewelry Manufacturing 
Industry submitted by the Schoenthaler-Green-EUbogen-Wood Com- 
mittee, representing 57 manufacturers of fraternity jewelry out of 
a possible 100 concerns numufacturing this product, was conducted 
in Washington on April 27, 1934, in accordance with the provisions 
of the National Industrial Recovery Act. 

As a result of said hearing, it is believed that Section C, of Sec- 
tion 1, Schedule "A" of the above Code, would tend to establish 
monopolies. 

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

It is found that: 

(a) The Amendment of said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of 
the National Industrial Recovery Act including the removal of 
obstructions to the free flow of interstate and foreign commerce 
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 the industries, by avoid- 
ing undue restrictions of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the 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 group was and is an industrial group truly representative 
of the manufacturers operating under Schedule A of the Code for 
the Industry and that said group imposed and imposes no inequitable 
restrictions on admission to membership therein and has applied for 
this amendment. 

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

(454) 



455 

(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 
amendments and modifications. 

For these reasons the amendment has been approved. 

For the National Industrial Kecovery Board : 

W. A. Harriman, 

Administrative Officer. 
March 4, 1935. 



123720—35 20 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE MEDIUM AND LOW PRICED JEWELRY MANUFAC- 
TURING INDUSTRY 

Delete the following subsection (c), Section 1 of Schedule A: 
"(c) Where a fraternity controls the manufacture and distribu- 
tion of its insignia under contract, it is an unfair trade practice for 
unauthorized persons to manufacture, solicit, or accept orders for 
such insignia." 

Approved Code No. 175 — Amendment No. 2. 
Registry No. 1215-1-01. 

(456) 



Approved Code No. 362 — Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PHOTOGRAPHIC AND PHOTO FINISHING 
INDUSTRY 

As Approved on March 4, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Photographic and Photo Finishing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Indus- 
trial Recovery Act, approved June 16, 1933, for the Photographic 
and Photo Finishing 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, the National Industrial Recov^ery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6859, and otherwise, does hereby incorporate, 
by reference, said annexed report and does find that said Amend- 
ment 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 does hereby order 
that said Amendment be and it is hereby approved, and that the 
previous approval of said Code as amended is hereby modified to 
include an approval of said Code in its entirety as amended, such 
approval and such Amendment to take effect twenty (20) days from 
the date hereof, unless good cause to the contrary is shown to the 
National Industrial Recovery Board before that time and the Na- 
tional Industrial Recovery Board issues a subsequent order to that 
effect. 

National Industrial Recovery Board, 
By W. A. Harriman, Admmistrative 0-fficer. 

Approval recommended : 
John W. Upp, 

Acting Division Administrator. 

Washington, D. C, 

March 4, 1935. 

(457) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : The Code Authority for the Photographic and Photo Finish- 
ing Industry on November 20, 1934 submitted an application for an 
amendment to the Code of Fair Competition for the said Industry. 
The purpose of the proposed amendment was to correct, in so far as 
possible, existing inequities- 

A public hearing was held in Washington on January 3, 1935 pur- 
suant to the provisions of the National Industrial Recovery Act. 
Every person who requested an appearance was heard in accordance 
with statutory and regulatory requirements. 

The proposed amendments include a change in the administra- 
tive organization, the modification of certain provisions to a form 
more equitable and capable of administration, and the conformation 
of certain other provisions to existing policy. 

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

It is found 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 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, by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provision of said title of said act, including without limitation 
subsection (a) of section 3, subsection (a) of section 7 and subsec- 
tion (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 ta 
and will not eliminate or oppress small enterprises and will not oper- 
ate to discriminate against them. 

(458) 



459 

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

For these reasons, therefore, this Amendment has been approved. 
For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 
March 4, 1935. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE PHOTOGRAPHIC AND PHOTO FINISHING 
INDUSTRY 

Item 1. Wherever used in the Code, delete the word "Adminis- 
trator "' or the phrase "Administrator for Industrial Recovery " 
and substitute therefor the phrase " National Industrial Recovery 
Board ", and wherever the word " he ", referring to Administrator 
is used, substitute the word " it." 

Item 2, Wherever used in the Code, delete the words " Code Au- 
thority " and substitute therefor the words " Divisional Code 
Authority." 

Item 3. In the second line of Subparagraph (c). Paragraph 1, 
of Article II, delete the word " or " before the word " exposed " and 
substitute the word " of." 

Item 4. Delete the present provision of Paragraph 2 of Article 
Illand substitute therefor the following: 

" No other employee, except watchmen who may work not more 
than fifty-two (52) hours per week and outside salesmen, may be 
permitted to work in excess of forty (40) hours per week." 

Item 5. Delete the present provision of Paragraph 3 of Article 
III and substitute therefor the following: 

" The provisions of Sections 1 and 2 of this Article shall not 
apply to members of the Industry operating individually owned 
and individually operated units, or to emplo3^ers or employees en- 
gaged in a managerial capacity earning more than thrity-five (35.00) 
dollars per week." 

Item 6. Add to Article V the following Paragraph to be listed 
as Paragraph 10: 

" No member of the Industry shall dismiss or demote any em- 
ployee for making a complaint or giving evidence with respect to an 
alleged violation of the provisions of any Code." 

Item 7. Delete Paragraphs 1 and 2 of Article VI and substitute 
therefor the following four Paragraphs : 

1. "A Basic Code Authority is hereby constituted which shall 
consist of the Chairman of each of the Divisional Code Authorities 
to be elected pursuant to the provisions of this Article. The Basic 
Code Authority shall coordinate and adjust all matters involving 
inter-divisional conflicts." 

2. "A Divisional Code Authority for each of the Divisions listed 
in Paragraph 1 of Article II is hereby constituted. Each divisional 
Code Authority shall consist of at least three (3) and not more than 
five (5) members of that Division, provided, however, the Portrait 
and Commercial Division may administer tlie provisions of this Code 
through one Divisional Code Authority. The election of all members 
of each Divisional Code Authority shall be by a fair method, which 
method shall be submitted to the National Industrial Recovery Board 

(460) 



461 

for approval. The National Industrial Eecovery Board may appoint 
additional members without vote to represent such governmental 
agencies as it desires." 

3. " Each Divisional Code Authority shall in accordance with such 
regulations as may be prescribed by the National Industrial Recovery 
Board have exclusive jurisdiction over matters pertaining and/or 
problems relating exclusively to that Division, including the collec- 
tion and disposition of funds paid by members of that Division for 
Code purposes." 

4. " Each Divisional Code Authority may establish in any Trade 
Area local Trade Area Code Committees to administer the provisions 
of this Code in that particular Trade Area, provided, however, that 
such Trade Area signifies its desire for such administration. The 
cost of such administration shall be borne on a voluntary basis by 
the members of that Trade Area. All action of Trade Area Code 
Committee so constituted shall be subject to the approval of the Divi- 
sional Code Authority." 

Item 8. Delete the present titular numbers of Paragraphs 3 and 4 
of Article VI and substitute therefor the titular numbers 5 and 6. 

Item 9. Delete the present Paragraph 5 of Article VI of the Code 
as amended on October 6, 1934, and substitute therefor the following 
to be listed as Paragraph 7 : 

7. " Nothing contained in this Code shall constitute the Members 
of the Basic Code Authority or any Divisional Code Authority part- 
ners for any purpose. Nor shall any Member of the Basic Code Au- 
thority or any Divisional Code Authority be liable in any manner to 
anyone for any act of any other Member, Officer, Agent or Employee 
of the Basic Code Authority or any Divisional Code Authority. Nor 
shall any Member of the Basic Code Authority or any Divisional 
Code Authoritv be liable to anyone for any action or omission to 
act under the Code, except for his own willful misfeasance or non- 
feasance." 

Item 10. Delete the present titular number of Paragraph 6 of the 
Code as amended on October 6, 1934 and substitute therefor the 
titular number 8. 

Item 11. Delete the present titular number of Paragraph 7 of the 
Code as amended on October 6, 1934 and substitute therefor the fol- 
lowing to be listed as Paragraph 9 : 

9. " If the National Industrial Recovery Board shall determine 
that any action of either the Basic Code Authority or any Divisional 
Code Authority or any agency thereof may be unfair or unjust or 
contrary to public interests, the National Industrial Recovery Board 
may require that such action be suspended to afford an opportunity 
for an investigation of the merits of such action and further con- 
sideration by the Basic Code Authority or the Divisional Code Au- 
thority or any agency thereof pending final action which shall not be 
effective unless the National Industrial Recovery Board approves 
or unless it shall fail to disapprove after thirty (30) days notice to 
it of intention to proceed with such action in its original or modified 
form." 

Item 12. Add to the two existing Subparagraphs of Paragraph 3- 
of Article VIII the following Subparagraphs : 



462 

C. " To fail to include as a condition of sale filed with the Trade 
Area Code Committee, in such regions where price filing is required, 
the length of time generally required before the finished Industry 
Product is ready for the consumer." 

D. " To grant or offer to grant trade discounts contrary to the 
provision as set forth in Schedule ' C ' attached hereto." 

Item 13. Delete Article IX and substitute therefor the following: 
1. " Each member of the Industry in those Trade Areas which 
have elected Trade Area Code Committees pursuant to the provisions 
of Paragraph 4 of Article VI shall file with a confidential and dis- 
interested agent of the Trade Area Code Committee or, if none, then 
with such an agent designated by the National Industrial Recovery 
Board, identified lists of all of 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 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 Divisional 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 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 available to both 
the members of the Industry and their customers who have applied 
therefor and have offered to defray the cost actually incurred by the 
Divisional Code Authority or its agent in the preparation and dis- 
tribution thereof. The Code Committee 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 National 
Industrial Recovery Board. Upon request the Trade Area Code 
Committee shall furnish to the National Industrial Recovery Board 
or any duly designated agent of the National Industrial Recovery 
Board copies of any such lists or revisions of price terms." 

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

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

4. "No member of the Industry shall enter into any agreement, 
understanding, combination or conspiracy to fix or maintain price 
terms, no 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." 

5. " The standards of fair competiticm for the Industry with refer- 
ence 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 



463 

other Industry or the customers of either may at any time complain 
to the Divisional Code Authority that any filed price constitutes un- 
fair competition as destructive price cutting, imperiling small enter- 
prise or tending toward monopoly or the impairment of code wages 
and working conditions. The Divisional 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 Re- 
search and Planning Division of the National Recovery Administra- 
tion which shall render a report and recommendation thereon to the 
National Industrial Recovery Board. 

'(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 Paragraph 
6 hereof, is forbidden.' " 

6. "(a) If the National Industrial Recovery Board, after investi- 
gation shall at any time find both (1) that an emergency has arisen 
within the Industry adversely affecting small enterprise or wages 
or labor conditions, or tending toward monopoly or other acute 
conditions which tend to defeat the purposes of the Act; and (2) 
that the determination of the stated minimum price for a specified 
product within the Industry for a limited period is necessary to 
mitigate the conditions constituting such emergency and to effectuate 
the purposes of the Act, the Divisional Code Authority may cause 
an impartial agency to investigate costs and recommend to the 
National Industrial Recovery Board a determination of the stated 
minimum price of the product affected by the emergency and there- 
upon the National Industrial Recovery Board may proceed to 
determine such stated minimum price. 

"(b) When the National Industrial Recovery Board 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, it 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 destruc- 
tive price cutting. From time to time, the Divisional Code Author- 
ity may recommend review or reconsideration or the National Indus- 
trial Recovery Board may cause any determinations hereunder to 
be reviewed or reconsidered and appropriate action taken." 

Item 14. Delete Article X. 

Item 15. Delete the present Article XI and substitute therefor the 
following to be listed as Article X. 

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



464 

and specifically, but without limitations, to be the right of the Presi- 
dent to cancel or modify his approval of this Code or any conditions 
imposed by him upon approval thereof." 

2. " This Code, except as to provisions required by the Act, may be 
modified upon the basis of experience or changes in circumstances, 
6uch modifications to be based upon application to the National 
Industrial Recovery Board by either the Basic Code Authority or 
any Divisional Code Authority and such notice and hearing as it shall 
specify, and to become effective upon approval by the President." 

Item 16. Change the titular numbers of Articles XIII, and XII, 
to XI and XII. 

Item 17. Delete the provisions of Schedule " C " and substitute 
therefor the following: 

" The total of all discounts including cash discounts shall not 
exceed thirty-five per cent (35%). All cash discounts are conditioned 
upon the payment of the account by the fifteenth of the following 
month, however, the Divisional Code Authority may authorize ex- 
ception to this trade discount provided, that eighty-five per cent 
(85%) of the members of the Industry in a Trade Area show that 
due to conditions peculiar to that area or for other sufficient cause, 
exception should be permitted. The National Industrial Recovery 
Board may approve, disapprove, or modify the determination." 

Approved Code No. 362 — Amendment No. 2. 
Hegistry No. 1650-17. 



Approved Code No. 21 — Amendment No. 3 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LEATHER INDUSTRY 

As Approved on March 5, 1935 



ORDER 



Approving Amendment of Code of Fair Competition for the 
Leather 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 the Code of Fair Competition for the Leather Industry, and 
notice of opportunity to be heard having been duly given thereon 
and the annexed report on said amendment, containing findings with 
respect thereto, having been made and directed to the President. 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to author- 
ity vested in it by Executive Orders of the President, including 
Executive Order No, 6859, dated September 27, 1934, and otherwise ; 
does hereby incorporate, by reference, said annexed report and does 
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 
does 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. 
National Industrial Recovery Board, 
By W. A, Harriman, Administrative Ojficer. 

Approval recommended: 
Prentiss L. Coonley, 

Division Administrator. 
Washington. D. C, 

March 5, 1935. 

(465) 



REPORT TO THE PRESIDENT 

The Presidext, 

The White Home. 
Sir : This is a report on the Amendment to the Code of Fair Com- 
petition for the Leather Industry and on the Notice of Opportunity 
to be Heard, dated January 23, in accordance with the provisions of 
Title I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Leather Industry, throu^^h the General Planning Committee, 
its Code Authorit}', has availed itself of provisions in Article XV 
of the Code of Fair Competition for the Leather Industry, approved 
by you on the seventh day of September, 1933. 

RESUME OF AMENDMENT 

The Amendment calls for a revision of Article XV, paragraph 2, 
and will enable the Code Authority to propose Amendments on be- 
half of the Industry or any Division thereof, without the necessity 
of a three-quarter vote of the entire Industry, as provided in the 
original article. At the time the Leather Code was formulated, it 
included only tanners of leather. They were comparatively few 
in number, and an approval by seventy -five (75) per cent was demo- 
cratic and workable. Since tlie Code was originally approved, there 
have been included under the Code many small and scattered groups 
of related industries, such as the Leather Belting Division. On 
several occasions it has been found that, although they received one 
hundred (100) per cent vote of approval by the tanners to a pro- 
posed action, the absence of any vote from many of the smaller 
members made the securing of seventy-five (75) per cent a physical 
impossibility. In other words, their hands have been tied in taking 
any constructive action. It was only after the expenditure of con- 
siderably over one thousand dollars in long distance telephone calls 
that the Code Authority was able to get the necessary votes on this 
particular Amendment. 

The Deputy Administrator, in his final report to the National 
Industrial Recovery Board on said Amendment to said Code, having 
found as herein set forth and on the basis of all the proceedings in 
this matter: 

The National Industrial Recovery Board finds that : 

(a) The Amendment to the 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 int^rstat* and foreign commerce, 
which tend to diminish the amount thereof, and will provide for the 

(466) 



467 

general welfare by promoting the organization of industry for the 
purpose of cooperative action among trade groups, by inducing and 
maintaining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of the industries, by avoiding undue 
restrictions of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing 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 empowers the General Planning Committee to pre- 
sent the aforesaid Amendment on behalf of the Industry as a whole. 

(d) The Amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The Amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, this Amendment has been approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
Administrative Officer. 

March 5, 1935. 



AJSIENDMENT TO CODE OF FAIR COMPETITION FOR 
THE LEATHER INDUSTRY 

Amend the Title of Article XV by deleting the last two words 
" and Voting " and change " comma " to " period " after the word 
" terminations." 

Article XV, paragraph (2) shall be amended to read as follows: 
Such of the provisions of this Code as are not required to be in- 
cluded herein by the Act may, upon recommendation of the General 
Planning Committee as provided herein and, with the approval of 
the National Industrial Recovery Board, be modified or eliminated 
in such manner as may be indicated by the needs of the publiCj by 
changes in circumstances, or by experience. All of the provisions 
of this Code, unless so modified or eliminated, shall remain in effect 
until June 16, 1935. 

Approved Code No. 21 — ^Amendment No. 3. 
Registry No. 930-1-01. 

(468) 



APPENDIX 



Approved Code No. 84 — Appendix No. 5 
CODE APPENDIX 

FOR THE 

INDUSTRIAL WIRE CLOTH MANUFACTURING 

INDUSTRY 

As Approved on February 8, 1935 



ORDER 



Approvikg Appe>;dix for the Industpjal Wire Cloth Manufac- 
turing Industry 

a subdivision of the fabricated metal products manufacturing and 
metal finishing and metal coating industry 

An application having been tliily 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 Competition 
for the Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating Industry, approved November 2, 1933, as 
amended June 1, 1934, for approval of an Appendix establishing 
trade practice provisions for the Industrial Wire Cloth Manufactur- 
ing Subdivision of said Industry, and Notice of Opportunity to be 
Heard having been dulj i^ublicized, and objections having been re- 
ceived and duly considered thereon; and the annexed report on said 
Api^endix to said Code 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, the National Industrial Recovery Board, pursuant to author- 
it}^ vested in it by Executive Orders of the President, including 
Executive Order No. 6859. dated September 27, 1934, and otherwise ; 
does hereby incorporate by reference said annexed report and does 
find that said Appendix to said Code complies in all respects with 
the pertinent provisions and will promote the policy and purposes 
of said Title of said Act; and does hereby order that said Appendix 
of said Code of Fair Competition be and it is hereby approved : 

PROVIDED. HOWEVER, that the operation of the provisions 
of Section A of Article V of the Code of Fair Competition for the 
Fabricated Metal Products Manufacturing and Metal Finishing and 
Metal Coating Industr}' be and it is hereby stayed as to all members 

123726—35 21 (469) 



470 

of the Industrial Wire Cloth Manufacturing Subdivision of said 
Industry subject thereto until the National Industrial Recovery 
Board may by its order otherwise direct. 

National Industrial Recovery Boaiu), 
By W. A. Harriman, Administrative O-ffleer. 

Approval recommended: 
KiLBouRNE Johnston, 

Acting Division AdminiMrator. 

Washington, D. C, 

February 8, 1936. 



REPOKT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on an Appendix to the Code of Fair Compe- 
tition for the Fabricated Metal Products Manufacturing and Metal 
Finishing and Metal Coating Imiustry, approved on November 2^ 
1933, and as amended on June 1, 1934. 

GENERAL STATEMENT 

The Industrial Wire CloCti Manufacturing Industry, being truly 
representative of this Subdivision of the Fabricated Metal Products 
Manufacturing 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 Finish- 
ing and Metal Coating Industry, with the assistance of additional 
fair trade practice provisions. 

RESUME OF THE APPENDIX 

Paragraph A, accurately defines the term " Industrial Wire Cloth 
Manufacturing Subdivision." 

Paragraph B, sets up a governing body consisting of members of 
the Subdivision and also provides for an Administration Member. 
This governing body is to be known as the Subdivisional Committee 
for the Industrial Wire Cloth Manufacturing Subdivision. 

Paragraph C, prescribes the effective date of the Appendix. 

TRADE PRACTICES 

Section 1, provides for the formulating of methods of cost finding 
and accounting capable of use by all members of this Subdivision. 

Section 2, provides for open price filing by the members of the sub- 
division. 

Section 3, provides for standards of fair competition with refer- 
ence to pricing practices, such as wilfully destructive price cutting, 
and declared emergency conditions. 

Section 4, provides for the determination of a lowest reasonable 
cost in the event of a destructive price cutting emergency. 

Section 5, provides against indemnifying a purchaser against either 
a decline or an advance in price. 

Section 6, provides that no purchaser shall receive advance notice 
of any change in price or condition of sale. 

Section 7, provides that full specifications covering quantity, price 
and fixed delivery date shall accompany orders. 

Section 8, provides that an invoice must be dated as of the 
actual date of shipment. 

Section 9, sets forth the practice of combination sales. 

Section 10, provides against inducing breach of contract. 

(471) 



472 

Section 11, provides against consignment shipments. 

Section 12, sets forth the practices in reference to return of obso- 
lete products. 

Section 13, provides against consequential damages. 

Section 14, provides against substitution. 

Section 15, provides that products are to be described in terms 
common to the Subdivision. 

Section 16, relates to the classification of customers. 

FINDINGS 

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

It has been found that : 

(a) Said Appendix to said 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 connnerce which tend to diminish the amount thereof 
and will provide for the general welfare by promoting the organi- 
zation 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- 
A'ision. 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])orarily 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 b}' the National Industrial Recover}' 
Board as a major industry. 

(c) The Appendix to said Code as approved com]:)lies 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 T, and Subsection (b) of vSection 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 to said Code is not designed to and will not 
permit monopolies or monopolistic practices. 

(e) The Appendix to said Code is not designed to and Avill not 
eliminate or oppress small enterprises and will not operate to dis- 
criminate against them. 

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

For these reasons, therefore, this Appendix of said Code has 
been approved. 

For the National Industrial Recovery Board : 

W. A. Harrtmax. 
Administrative Oiflcer. 
FraRUARY 8, 1935. 



CODE APPENDIX FOR THE INDUSTRIAL WIRE CLOTH 
MANUFACTURING INDUSTRY 

A SUBDIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING 
AND METAL FINISHING AND METAL COATING INDUSTRY 

Pursuant to Section 4 of Article IV of the Code of Fair Com- 
petition of the Fabricated Metal Products Manufacturing and Metal 
Finishing and Metal Coating Industry, as amended, (the terms of 
which apply to each member of the Industrial Wire Cloth Manufac- 
turing Subdivision) the following provisions are established as an 
Appendix to said Code of Fair Competition of the Fabricated Metal 
Products Manufacturing and Metal Finishing and Metal Coating 
Industry for the Industrial Wire Cloth Manufacturing Subdivision 
of that Industry. 

A. Definition^— The term " Industrial Wire Cloth Manufacturing 
Subdivision " hereinafter in these trade practice provisions referred 
to as the '' subdivision ", means and includes, but without limitation, 
any individual, partnership, association, corporation, or other form 
of enterprise, engaged either, as an employer, or on his or its own 
behalf, in the manufacture, for sale, of woven wire cloth in any 
and all metals and for all purposes except fourdrinier and other 
wire cloth for use in pulp and paper mills as covered by the Sup- 
plementary Code of Fair Competition for the Pulp and Paper Mill 
Wire Cloth Manufacturing Industry, also excepting insect wire 
screen cloth woven from copper, bronze, aluminum, monel metal, 
steel wire or other alloys in 12, 14, 16, and 18 mesh, and, further 
excepting wire poultry netting, fish trap wire netting, auto top wire 
netting, stucco wire netting, standard hardware wire cloth and woven 
wire lath. 

B. Siibdivhional Conmnittee. — The members of the subdivision 
shall set up a subdivisional committee for the Industrial Wire Cloth 
Manufacturing Subdivision, hereafter referred to as the " subdivi- 
sional committee ", consisting of as many members as may be deter- 
mined by and in a manner satisfactory to the Basic Code Authority 
and the National Industrial Recovery Board. The National Indus- 
trial Recovery Board may appoint a member of the subdivisional 
committee who shall be given reasonable notice of and may sit at all 
meetings of the subdivisional committee, but who shall l>e without 
vote and shall serve without expense to the subdivision. 

C. Effective Date. — This Appendix shall become effective ten (10) 
days after its approval by the National Industrial Recovery Board, 

TRADE PRACTICES 

Any member of the subdivision who directly or indirectly through 
any officer, employee, agent, or representative violates or evades any 
of the following trade practice provisions shall be guilty of violation 
of this Code. 

(473) 



474 

Section 1. Cost Finding. — The subdivisional committee shall cause 
to be formulated, methods of cost findino; and accountino; capable of 
use by all members of the subdivision, and shall submit such methods 
to the National Industrial llecovery lioard for review. If approved 
by the National Industrial Recovery Board, full information con- 
cerning such methods shall be made available to all members of the 
subdivision. Thereafter, each member of the subdivision shall utilize 
such methods to the extent found practicable. Nothing herein con- 
tained shall be construed as permitting the subdivisional committee, 
any agent thereof, or any member of the subdivision to suggest imi- 
form additions, percentages or differentials or other uniform items 
of cost, which are designed to bring about arbitrary uniformity of 
costs or prices. The principles of accounting and costing as approved 
and set up under this seftion shall not be used by the subdivisional 
committee or the Basic Code Authority in the administration of the 
provisions of Article V, Section A of the Basic Code. 

Section 2. Open Price Filing. — (a) Each member of the subdi- 
vision shall file with a confidential and disinterested agent of the 
subdivisional committee, or, if none, then with such an agent desig- 
nated b}' the National Industrial Recovery Board, identified lists of 
all of his prices, discounts, rebates, allowances, and all other terms 
or conditions of sale, hereinafter in this A])pendix referred to as 
" price terms ", which lists shall completely and accurately conform 
to and represent the individual pricing practices of said member. 

Such lists shall contain the price terms for all such standard prod- 
ticts 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 subdivisional committee. 

Said price terms shall in the first instance be filed within twenty 
(20) days after the date of approval of this provision. Price terms 
and revised price terms sliall become effective immediately upon 
receipt thereof by said agent. 

Immediately upon receipt thereof said agent shall by telegraph or 
other equally 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 immediately and simultaneously 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 agent of the subdivisional committee in the ])repara- 
tion and distribution thereof and be available for ins})ectioii b}' any 
of tlieir customers at the office of said agent. 

Said lists or revisions or any part thereof, shall not be made 
available to any person until released to all members of the subdi- 
visidn and their customers, as aforesaid; ])rovi(led, that prices filed 
in the first instance shall not be released until the expiration of 
the aforesaid twenty (20) day period after the approval of this 
A))pendix. 

The subdivisional committee sliall 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 National 
Industrial Recovery ]3oard. Upon request, the subdivisional com- 
mittee shall furnish to the National Industrial Recovery Board or 



475 

any duly designated agent of the National Industrial Recovery 
Board, 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 (48) 
hours. 

(c) No member of the subdivision shall sell or offer to sell any 
products or services of the subdivision for which price terms have 
been filed pursuant to the foregoing provisions, 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 Section to create. 

Section 3. Costs and Price Cutting. — The standards of fair com- 
petition for this subdivision 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 subdivision or of any 
other subdivision or industry or the customers of either, may at any 
time complain to the subdivisional committee that any filed price 
constitutes unfair comjoetition as destructive price cutting, imperil- 
ing small enterpise or tending toward monopoly or the impairment 
of code wages and working conditions. The subdivisional committee 
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 National 
Industrial Recovery Board. 

(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 the follow- 
ing Section 4 hereof, is forbidden. 

Section 4. Emergency Provisions. — (a) If the National Indus- 
trial Recovery Board after investigation, shall at any time find both 
(1) that an emergency has arisen within the subdivision adversely 
affecting small enterprises or wages or labor conditions, or tending 
toward monopoly or other acut€ 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 subdivision, for a 
limited period is necessary to mitigate the conditions constituting 
such emergency and to effectuate the purposes of the Act, the sub- 
divisional committee may cause an impartial agency to investigate 
costs and to recommend to the National Industrial Recovery Board 
a determination of the stated minimum price of the product affected 
by the emergency and thereupon the National Industrial Recovery 
Board may proceed to determine such stated minimum price. 



476 

(b) When the National Industrial Recovery Board shall have 
determined such stated niininium 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 Kecovery Act, they shall publish such price. 
Thereafter, during such stated period, no member of the subdivision 
shall sell such specified prt)ducts 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 subdivisional conunittee may 
recommend review or reconsideration or the National Industrial 
Recovery Board may cause any determinations hereunder to be 
reviewed or reconsidered and apjjropriate action taken. 

Section 5. Indemnifying Against Decline or Advance in Price. — 
No member of the subdivision shall indemnify a purchaser nor offer 
to indemnify a purchaser against either a decline or an advance in 
price. 

Sectiox 6. Advance Notice of Price CJmnges. — No member of the 
subdivision shall give to any purchaser, or prospective purchaser, 
any advance notice of an intention to change his price terms and/or 
conditions of sale. 

Seciion 7. Specifications and Definite Delivei^ Date to Accom- 
pany OrdevH. — No member of the subdivision shall enter into or 
accept a contract, order or commitment unless such contract, order 
or commitment is accompanied by full specifications covering quan- 
tity, price and a fixed delivery date which does not extend beyond 
ninety (90) days from receipt of such contract, order or commitment. 

Section 8. P re-dating and Post-dating of Invoices. — No member 
of the subdivision shall state in any invoice, as the date thereof, a 
date earlier or later than the actual date of shipment, or include in 
any invoice, any product shipped on a date earlier or later than 
the date of such invoice. 

Section 9. C omhination Sales. — No member of the subdivision 
shall enter into any contract, accept an order or render any invoice 
to include goods other than products of the subdivision, unless the 
price charged or to be charged, for the product of the subdivision 
included therein, is separately stated and set forth. 

Section 10. Inducing Breach of Contract. — No member of the 
subdivision shall induce or attempt to induce the breach of a contract 
between a competitor and his customer or between a competitor and 
his source of supply ; nor shall any member of the subdivision inter- 
fere with or obstruct the j)erforniance of such contractual duties or 
services. 

Section 11. Shipinents mi Consignment. — No member of the sub- 
division shall shi{) goods on consignment except where peculiar cir- 
cumstances within the subdivision niiiy require the practice and then 
only under conditions to be defined by the subdivisional committee 
and approved by the National Industrial Recovery Board. 

Section 12. Return, of Obsolete Products. — No member of the sub- 
division shall offer to accept or accept for credit or refund, prod- 
ucts of the subdivision which are obsolete, or for other reasons not 
readily saleable, as shown by sales records of the preceding year, 
unless such member of the subdivision shall have, prior to such offer 
or acceptance, filed with the subdivisional committee a statement in 



writing, setting forth the facts concerning and reasons for such 
proposed offer or acceptance, provided, however, that such credit or 
refund granted by the member of tlie subdivision to any customer 
shall in no case amount to more than tlie resale or salvage value of 
the products returned, whichever is higher. Provided, further, 
that the provisions of this Section shall not apply to the return of 
products which are defective as to workmanship or material nor 
in cases where the member of the subdivision has failed to comply 
with the contract of sale. 

Section 13. CotisequentioJ Damages. — No member of the Subdi- 
vision shall enter into any agreement to assume responsibility for 
damages, or other items of expense, which normally cannot be antic- 
ipated by any member of the subdivision in original costs and 
selling prices, provided that this section shall not apply in cases of 
wanton or wilful malfeasance or negligence or in cases where its 
provisions conflict with existing state laws. 

Section 14. Substitution. — No member of the subdivision shall 
substitute or deliver, without the consent of the purchaser, any ma- 
terial or product other than that specified by the purchaser. 

Section 15. Products to he Described in Ternis Common to the 
Subdivision. — No member of the subdivision shall use in any in- 
voice, any descriptive term which does not fully describe the product 
sold, or to be sold, in terms customarily used in the subdivision. 

Section 16. Classification of Customers. — The subdivisional com- 
mittee shall cause to be formulated and keep current a classification 
of all types of customers of the subdivision. Such classification shall 
be subject to the disapproval of the National Industrial Recovery 
Board and shall contain: (a) A complete list of all the classes of 
customers of the subdivision, including a class to cover every known 
type of customer; and (b) definitions or descriptions of the several 
classes in terms of functions performed, or in other appropriate 
terms such as purchasers of defined quantities. 

After submission to the National Industrial Recovery Board, if 
there is no disapproval or request for suspension of action within 
twenty (20) days, full information concerning the classification shall 
be made available to all members of the subdivision. 

No one shall bj^ intimidation, coercion, or other undue influence, 
cause, or attempt to cause, the inclusion of any customer in, or the 
exclusion of any customer from, any class of customers, or the ex- 
clusion of any class of customers from the classification, or the use 
of uniform or stipulated prices, discounts or differentials and each 
member of the subdivision may at all times classify his own custom- 
ers in accordance with his own judgment. 

Approved Code No. 84 — Appendix No. 5. 
Registry No. 1151-12. 



Approved Code No. 84 — Appendix No. 6 

CODE APPENDIX 

FOR THE 

COSMETIC CONTAINER MANUFACTURING 
INDUSTRY 

As Approved on February 12, 1935 



ORDER 



Approving Appendix for the Cosmetic Container 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 an Appendix establishing 
trade practice provisions for the Cosmetic Container 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 to said Code con- 
taining findings with respect thereto, having been made and directed 
to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, the National Industrial Recovery Board, pursuant to authority 
vested in it by Executive Orders of the President, including Execu- 
tive Order No. 6859, dated September 27, 1934, and otherwise; does 
hereby incorporate by reference said annexed report and does find 
that said Appendix to said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and does hereby order that said Appendix 
to said Code of Fair Competition be and it is hereby approved; 
provided, that Section 8 thereof be and it hereby is stayed for a 
period of twenty (20) days from the date hereof, and at the expira- 

(479) 



480 

tion of that time it shall become effective unless good cause to the 
contrary is shown to the National Industrial Recovery Board before 

that date. 

National Industrial Recovery Board, 
B3' W. A. Harriman, Administrative OiJicer. 

Approval recommended: 
Kilbourne Johnston, 

Acting division Administrator. 

Washington, D. C. 

Felruary 12, 1935. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on an Appendix to the Code of Fair Compe- 
tition 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 Cosmetic Container Manufacturing Industry, being truly rep- 
resentative of this Subdivision of the Fabricated Metal Products 
Manufacturing 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 Finish- 
ing and Metal Coating Industry, with the assistance of additional 
fair trade practice provisions. 

RESUME OF THE APPENDIX 

Paragraph A. Definition, accurately defines the term '* Cosmetic 
Container Manufacturing." 

Paragraph B. Governing Body, sets up a governing body consist- 
ing of members of the Subdivision and also provides for an Admin- 
istration Member. This governing body is to be known as the 
Subdivisional Committee for the Cosmetic Container Manufacturing 
Subdivision. 

Paragraph C. Effective Date, prescribes the effective date of the 
Appendix. 

TRADE PRACTICES 

Section 1 provides that no member shall falsely classify any 
product for the purpose of securing lower freight rates. 

Section 2 prohibits the sale of or quotations on other products 
and/or commodities, as a subterfuge toward disposing of products 
of this Industry at less than the invoiced price plus all incidental 
costs. 

Section 3 provides that no member shall secure confidential infor- 
mation by false or misleading statement or by bribery or any other 
false method. 

Section 4 makes it a violation for any member of the Industry to 
use the term " advertising allowances " when applied to any part of 
price offer or to denote payment for the purchase of specific promo- 
tion services. 

Section 5 provides that no member of the subdivision shall grant 
terms on payment of sales more favorable than net cash. 

(481) 



482 

Section 6 makes it a violation for any member of the Industry to 
publish or circulate threats of suits for infringement of patents or 
trade marks or any other legal proceedings not in good faith. 

Section T prohibits the breach of a written contract between a 
competitor and his consumer. 

Section 8 makes it a violation for any member of the Industry to 
grant the right to purchasers to remove tools from the employer's 
plant because of the payment by the purchaser of fitting up charges 
to cover the cost of such tools and fixtures made especially for an 
order. 

Section 9 prohibits the return by the purchaser of damaged or 
shopworn merchandise without previous return authorization by the 
said member of the subdivision. 

Section 10 prohibits the making or offering to make contracts under 
terms of which the customer shall have the right to take delivery 
of any part or all of the goods after 90 days from date of first de- 
livery; (provided, that contracts may be accepted for more extended 
time.) 

Section 11 prohibits the failure to invoke available legal remedies 
upon breach of contract by a customer, for the purpose of securing 
competitive advantage over other members of this subdivision. 

Section 12 makes it a violation for any member of the Industry 
to discriminate in price in favor of purchasers of goods for export 
compared with domestic purchasers; provided, that nothing shall 
prevent discrimination between purchasers that makes only due al- 
lowance for differences in grade, quality, or quantity of the com- 
modity sold, or in the cost of selling or transportation. 

FINDINGS 

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

It has been found that: 

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

(c) The Appendix to said Code as approved complies in all re- 
spects with the pertinent provisions of said Title of said Act, includ- 



483 

ing 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 to said Code is not designed to and will not 
permit monopolies or monopolistic practices. 

(e) The Appendix to said Code is not designed to and will not 
eliminate or oppress small enterprises and will not operate to dis- 
criminate against them. 

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

For these reasons, therefore, this Appendix of said Code has been 
approved. 
For the National Industrial Recovery Board: 

W. A. Harriman, 
Administrative OMcer. 
February 12, 1935. 



CODE APPENDIX FOR THE COSMETIC CONTAINER 
MANUFACTURING INDUSTRY 

A SUBDIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING 
AND METAL FINISHING AND METAL COATING INDUSTRY 

Pursuant to 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, as amended, (the terms of 
which apply to each member of the Cosmetic Container Manufac- 
turing Industry Subdivision) the following provisions are estab- 
lished as an Appendix to said Code of Fair Competition of the 
Fabricated Metal Products Manufacturing and Metal Finishing and 
Metal Coating Industry for the Cosmetic Container Manufacturing 
Subdivision of that Industry. 

A. Defiintion. — The term "Cosmetic Container Manufacturing" 
is defined to mean the manufacture for sale of unfilled containers 
made in whole or in part of metal (other than tin decorated con- 
tainers or collapsible tubes), which are sold to the manufacturer of 
toilet goods in order to be used for the holding of perfume, cosmetic, 
and other toilet preparations. 

B. Snhdimsional Committee. — The members of the Subdivision 
shall set up a Subdivisional Committee for the Cosmetic Container 
Manufacturing Subdivision, hereafter referred to as the " Sul)divi- 
sional Committee ", consisting of as many members as may be deter- 
mined by and in a manner satisfactory to the Basic Code Authority 
and the National Industrial Recovery Board. The National Indus- 
trial Recovery Board may appoint a member of the Subdivisional 
Committee who .shall be given reasonable notice of and may sit at 
all meetings of the Subdivisional Committee, but who shall be with- 
out vote and shall serve without expense to the Subdivision. 

C. Effective Date. — This Appendix shall become effective ten (10) 
days after its approval by the National Industrial Recovery Board. 

TRADE PRACTICES 

Any member of the Subdivision Avho directly or indirectly through 
any officer, employee, agent, or representative, violates or evades any 
of the following trade practice provisions shall be guilty of violation 
of this Code. 

Section 1. Clat^Hificatnyv. — No member of the Subdivision shall 
falsely classify any product of this Subdivision as to nature tliereof 
for the purpose of securing lower freight rates. 

Section 2. romhiriation Sales. — No member of the Subdivision 
shall sell or offer to sell commodities other than products of this 
Subdivision for the purpose of infkiencing a sale of products of this 
Subdivision at prices below the invoice price plus all incidental cost 

(484) 



485 

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 of all articles listed. 

Section 3. Espionage of Gonnpetitors. — No member of the S'ubdi- 
s^ision shall secure or attempt to secure confidential information con- 
cerning the business of a competitor by false or misleading statement 
or representation, by false impersonation of one in authority, by 
bribery or by any other unfair method. 

Section 4. Advertising AUoioances. — No member of the Subdi- 
vision shall use in a sales agreement the term " advertising allow- 
ances " when it is applied to any part of the price offer or used 
otherwise than to denote the payment for the purchase of specific 
promotion services. No member of the Subdivision shall arrange for 
advertising allowances except in agreements entirely separate and 
distinct from sales agreements, nor shall any member grant adver- 
tising allowances except as payments for specific promotion perform- 
ances which are possible, practicable, and capable of being audited. 

Section 5. Terms. — No member of the Subdivision shall grant 
terms of payment on sales more favorable than net cash, thirty (30) 
days, or, if discount is allowed, such discount shall not be in excess of 
two (2% ) percent, 10 days proximo, net 30 days. Bills must be dated 
the day of shipment. 

Section 6. Threats of Litigation. — No member of the Subdivision 
shall publish or circulate threats of suits for infringement of patents 
or trade marks or any other legal proceedings not in good faith, with 
the tendency or effect of harassing competitors or intimidating their 
customers. 

Section 7. Interference with Another'' s Contracts. — No member of 
the Subdivision shall induce or attempt to induce the breach of a 
written contract between a competitor and his customer or source of 
supply, or interfere with or obstruct the performance of contractual 
duties or services covered by any such contract. 

Section 8. Fitting up Charges. — No member of the Subdivision 
shall grant the right to purchasers to remove tools from the employer's 
plant because of the payment by the purchaser of fitting up charges 
to cover the cost of such tools and fixtures made specially for an order. 
The terms on fitting up charges shall be net cash. After a period of 
two years without a reorder, unless otherwise mutually agreed upon, 
the employer shall be at liberty to make any disposition or use of such 
tools as he desires. No exception to this Section shall be allowed 
except under circumstances to be defined by the Subdivisional Com- 
mittee and approved by the National Industrial Recovery Board. 

Section 9. Goods Returned for Repair or Reconditioning. — No 
member of the Subdivision shall accept, after performing his part 
of the agreement of sale, the return by the purchaser of damaged or 
shopworn merchandise without previous return authorization by the 
said member of the Subdivision. A charge to cover the cost of re- 
conditioning and handling such merchandise shall be made. Nothing 
in this Section shall be construed to preclude the return of merchan- 
dise when authorized by a member of the Subdivision due to defects 
in workmanship or material. 

Section 10. Contracts or Order for Extended Deliveries. — No 
member of the Subdivision shall make or offer to make contracts, 

12;!726— .'is 22 



486 

or accept orders, under the terms of which the customers shall have 
the right to take delivery of any part or all of the goods after 90 
days from the estimated date that the first delivery would be avail- 
able for shipment or in accordance with the manufacturer's ability 
to produce, or to modify existing contracts or orders to include such 
provisions; (provided, however, that contracts or orders may be 
accepted for more extended deliveries at the customer's request if 
provision is made for adjusting the price of undelivered portions at 
the end of the first ninety (90) days above mentioned and at the 
end of each three months' period thereafter, so that price during 
each three months' period shall be higher or lower, as the case may 
be, by an amount equal to the change in labor and/or material costs 
entering into the manufacture of tlie product covered by the con- 
tract of the individual member, as of the first day of the period in 
comparison with these costs at the date when the contract was made 
or the order taken.) 

Section 11. Completion and Cancellation of Contracts. — No mem- 
ber of the Subdivision shall fail to invoke available legal remedies 
upon breach of contract by a customer, for the purpose of securing 
competitive advantage over other members of this Subdivision. 
Nothing in this Section shall be construed to preclude reasonable 
out-of-court settlements in cases of breach of contract. 

Section 12. Export Prices. — No member of the Subdivision shall 
discriminate in price in favor of purchasers of goods for export as 
compared with domestic purchasers ; provided, however, that nothing 
lierein shall prevent discrimination between purchasers that makes 
only due allowance for difference in the grade, quality or quantity 
of the commodity sold or differences in the cost of selling or trans- 
portation. " Export trade " as used herein is defined to mean export 
trade as the term is used in the Export Act of 1918. 

Approved Code No. 84 — Appendix No. 0. 
Registry No. 1636-01. 



Approved Code No. 84 — Appendix No. 7 
CODE APPENDIX 

FOR THE 

METAL SAFETY TREAD MANUFACTURING 
INDUSTRY 

As Approved on February 15, 1935 



ORDER 



Approving Appendix for the Metal Safety Tread 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 Com- 
petition for the Fabricated Metal Products Manufacturing and 
Metal Finishing and Metal Coating Industry, approved November 
2, 1933, as amended, for approval of an Appendix establishing trade 
practice provisions for the Metal Safety Tread Manufacturing Sub- 
division of said Industry, and Notice of Opportunity to be Heard 
having been given to all interested parties, and objections received 
thereon having been satisfied, and the annexed report on said Ap- 
pendix 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, the National Industrial Recovery Board, pursuant to au- 
thority vested in it by Executive Orders of the President, including 
Executive Order No. 6859, dated September 27, 1934, and otherwise ; 
does hereby incorporate by reference said annexed report and does 
find that said Appendix to said Code complies in all respects with 
the pertinent provisions and will promote the policy and purposes 
of said Title of said Act; and does hereby order that said Appendix 
of said Code of Fair Competition be and it is hereby approved. 

National Industrial Recovery Board, 
By W. A. Harriman, Administrative Officer. 

Approval recommended : 
John W. Upp, 

Acting Division Administrator 

Washington, D. C, 

Febru<Lry 15, 1935. 

(487) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on an Appendix to the Code of Fair Compe- 
tition for the Fabricated Metal Products INIaniifacturinf^ and Metal 
Finishin*^ and Metal Coating Industry, approved on November 2, 
1933, and as amended on June 1, 1934. 

GENERAL STATEMENT 

The Metal Safety Tread Manufacturing Industry, being truly 
representative of this Subdivision of the Fabricated Metal Products 
Manufacturing 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 Finish- 
ing and Metal Coating Industry, as amended on June 1, 1934, with 
the assistance of additional fair trade practice provisions. 

RESUME OF THE APPENDIX 

Paragraph A, Definition, accurately defines the term " Metal 
Safety Tread Manufacturing Subdivision." 

Paragraph B, Governing Body, sets uj) a governing body consist- 
ing of members of the Subdivision to be known as the Subdivisional 
Committee for the Metal Safety Tread Manufacturing Subdivision, 

Paragraph C. Effective Date, prescribes the effective date of the 
Appendix. 

Section 1 provides for open price filing. 

FINDINGS 

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

It has been found that: 

(a) Said Appendix to said 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 purjxjse of cooperative action among the 
trade groups, by inducing and maintaining united action of labor 
and management under adequate governmental sanctions and su].)er- 
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 

(488) 



489 

be temporarily required), by increasing the consumption of indus- 
trial and agricultural products through increasing purchasing power, 
by reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry, 

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

(c) The Appendix to said Code as approved 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; 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 to said Code is not designed to and will not 
permit monopolies or monopolistic practices. 

(e) The Appendix to said Code is not designed to and will not 
eliminate or oppress small enterprises and will not operate to dis- 
criminate against them. 

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

For these reasons, therefore, this Appendix of said Code has been 
approved. 

For the National Industrial Recovery Board : 

W. A. Harriman, 
AdTTiinistrative Officer. 
February 15, 1935. 



CODE APPENDIX FOR THE METAL SAFETY TREAD 
MANUFACTURING SUBDIVISION 

A SUBDIVISION OF THE TABRICATED METAL PRODUCTS MANUFACTURING 
AND METAL FINISHING AND METAL COATING INDUSTRY 

Pursuant to Section 4 of Article IV of the Code of Fair Competi- 
tion of the Fabricated Metal Products Manufacturing and Metal 
Finishing and Metal Coating Industry, as amended, (the terms of 
which apply to each member of the Metal Safety Tread Manufactur- 
ing Subdivision) the following provisions are established as an Ap- 
pendix to said Code of Fair Competition of the Fabricated Metal 
Products Manufacturing and Metal Finishing and Metal Coating 
Industry for the Metal Safety Tread Manufacturing Subdivision of 
that Industry. 

A. Definition. — The term "Metal Safety Tread Manufacturing 
Subdivision " means and includes the manufacture for sale of Metal 
Safety Tread containing either lead or abrasive to provide anti- 
slip quality. 

B. Subdivisional Committee. — (1) Members of the subdivision 
shall set up a governing body which shall be known as the Subdivi- 
sional Committee and shall consist of six members of the subdi- 
vision, four of whom shall be members of the Metal Safety Tread 
Association elected by members of that association, one of whom shall 
be a non-member of the said association elected by non-members of 
the association, and one of whom may be either a member or non- 
member of the association who shall be elected at large by all mem- 
bers of the subdivision. 

(2) The members of the Subdivisional Committee shall be elected 
in a manner to be approved by the Basic Code Authority and the 
National Industrial Recovery Board. The National Industrial Re- 
covery Board may appoint a member of the Subdivisional Commit- 
tee who shall be given reasonable notice of and may sit at all meet- 
ings of the Subdivisional Connnittee but vv-ho shall be without vote 
and shall serve without expense to the Subdivision. 

(3) The Subdivisional Committee sliall have such powers and 
duties to administer any of the ])r()visions of the Basic Code and this 
Appendix within this Subdivision as may be delegated to it by the 
Code Authority. 

C. Effective Date. — This Appendix shall become effective ten (10) 
days after its approval by the National Industrial Recovery Board. 

TRADi; PUACTICK 

Section 1. Open Price Filing. — (a) Each member of the sub- 
division shall file with a confidential and disinterested agent of the 
subdivisional committee or, if none, then with such an agent des- 

(490) 



491 

ignated b^y the National Industrial Recovery Board, identified 
lists of all of his prices, discounts, rebates, allowances, and all 
other terms or conditions of sale, hereinafter in this article re- 
ferred to as " price terms ", which lists shall completely and accu- 
rately 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 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 subdivisional committee. 
Said price terms shall in the first instance be filed within twenty 
(20) 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 noti- 
fy said member of the time of such receipt. Such lists and revi- 
sions, together with the effective time thereof shall upon receipt 
be immediately and simultaneously distributed to all members of the 
subdivision and to all of their customers who have applied there- 
for and have offered to defray the cost actually incurred by the 
subdivisional committee in the preparation and distribution there- 
of 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 persons until released to all 
members of the subdivision and their customers, as aforesaid; pro- 
vided, that prices filed in the first instance shall not be released 
until the expiration of the aforesaid twenty (20) day period after 
the approval of this Appendix. The Subdivisional Committee shall 
maintain a permanent file of all price terms filed as herein pro- 
vided, and shall not destroy any part of such records except upon 
written consent of the National Industrial Recovery Board. Upon 
request the Subdivisional Committee shall furnish to the National 
Industrial Recovery Board or any duly designated agent of the 
National Industrial Recovery Board 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 (48) 
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 foregoing provisions, except in accordance with 
such price terms. 

(d) No member of the subdivision 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 sub- 
division to change his price terms by the use of intimidation, coer- 
cion, or any other influence inconsistent with the maintenance of the 
free and open market which it is the purpose of this provision to 
create. 

Approved Code No. 84 — ^Appendix No. 7. 
Registry No. 1122-23. 



SUPPLEMENTS