BOSTON PUBLIC LIBRARY
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NATIONAL RECOVERY ADMINISTRATION
DIVISION OF REVIEW
POLICY STATEMENTS CONCERNING CODE PROVISIONS
AND RELATED SUBJECTS
WORK MATERIALS No. 20
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Administrative Section
December, 1935
, 1 t f t C C.
Jilt
CONFIDENTIAL
MEMORANDUM TO: SECTION HEADS Decem'ber 19,
19 3 5
SUBJECT: WORK MATERIALS NO. 20
POLICY STATEMENTS CONCERNING CODE
PROVISIONS AND RELATED SUBJECTS.
The following pages contain a coinr>ilation of policy-
statements with resToect to code provisions and related suh-
jects. The coimDilation, while not an official document, is
expressive of the standards that were ordinarily followed.
It is now made available for confidential use within the
Division of Review in connection with the various studies in
process.
This volume was compiled "by Alvin Brown, Review
Officer of the National Recovery Administration, in May, and
June, 1935, at the request of the Executive Secretary of the
National Industrial Recovery Board.
The numhers in the margin refer to the Dertinent
paragraphs in the Office Manual.
L. C. Marshall,
Director, Division of Review
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C033E MAKING
— 0—
Substantive G-uides
(Manual, 11-1000-1999)
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Amendments: Substantive Guides
( Manual , 1 1 - 51 00- 51 9 9 )
— 0-
Model Code Provisions
9307 -i-
June 12, 1935
CONTENTS
Sulpstantive Ouides:
II - 1000 General considerations 1
1100 Definitions 12
1200 Hours 18
1300 Tfeges 24
1400 Other conditions of eraplojTnent 31
1500 Attested trade r)ractices 37
1600 Experimental trade practices 39
1700 Prices 48
1800 Code administration 57
1900 Miscellaneous matters 67
■Amenc'.ments
II - 5100 SulDstantive Guides 70
Model Code Provisions 72
Index 92
13 My 35 g
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G-ene ral policy
It is then declared to be the policy of Congress to do the
follor/ing things:
1012
Ohs true t ions to connerce
To remove obstructions to the free flow of interstate a,nd
foreign comiaerce uhich tend to diminish the amount thereof.
1012.1
Organization of industry
To provide f©r the general welfare "by promoting the or-
ganization of industry for the purpose of cooperative action among
trade groups.
1012.2
Cooperation of labor and industry
To induce and maintain united action of labor and
management luider adequate government sanctions and supervisions.
1012.3
Unfair competition
To eliminate unfair competition.
1012,4
Utilization of Productive capacity
To promote the fullest possible utilization of the
present productive capacity of industries; to avoid undue re-
striction of production (except as may be temporarily required.)
1012,5
Increase of consumption
To increase the consumption of industrial and agricult-
ural products by increasing purchasing power.
1012,6
Unemplo^TTient
To reduce and relieve unemployment,
1012.7
Standards of labor
To improve standards of labor.
1012,8
In general
Otherwise to rehabilitate industry and to conserve
natural resources.
1012.9
Means of execution of policy
As the means of executing this policy the Act prescribed
the following instruments;
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(1) Codes of fair competition applied for by industries
(sec, 3a)
1013
-3-
(2) Codes of fair competition prescribed by the President 1013
(sec, 3d)
(3) Voluntarv agreeraents with or among persons in industry,
labor oijanizations, and industrial organizations
(sec. 4a)
(4) Agreements botvoen employers and employees respecting
standards of eraplo;>Tnent (sec, 7b)
(5) Limited codes of fair competition dealing only with
standards of em-oloyment, prescribed by the President
(sec. 7c)
(6) Licensing to conduct business (sec, 4b)
(7) xlestrictions upon imports (sec, 3e)
These means are discussed hereafter.
Conformity of means to purpose
Each of these means must, whenever employed, and in every 1014
respect, be in conformity with at least one of the purposes declared
by Congress, and must not be contrary to any one of such purposes.
The mission of this body of Substantive Guides is to determine what
actions in particular situations so conform and what are contrary.
Codes of fair competition applied for by industries
What codes of fair competition may properly contain in de- 1020
tail is described in succeeding sections. But there are certain
antecedent general requirements, which, being provisions of the law,
are subject to no. waiver. These are contained in section 3a of
the Act,
The policy of the Act
Codes must tend to effectuate the policy of the Act 1021
(sec, 3a), as above set forth,
AiTolicants must be representative
There are other types of codes, as set forth above, 1022
but this type comes into being by the approval of the President
only upon the application of one or more trade or industrial
associations or groups. The law expressly requires that the
applicants be "truly representative of such trades or industries
or subdivisions thereof" (sec, 3a), To be truly representative
an applicant group must include a sufficiently broad cross section
of the industry to insure that the views of its members sub-
stantially correspond with those of the non-members.
Q'xn'7
Nature of applicants
The applicants vaa.y consist of one or more trade associa- 1022,1
tions, or of one or more trade associations ^7ith T/hom a group of in-
dividuals has joined for the purpose of presenting the code, or
solely of a £ioup of individuals.
Aspects of representation
To be truly representative an applicant group must in- 1022,2
elude enterprises of all distinctive types, such as —
(1) Various sizes,
(2) All significant types of locality, with regard "both
to sections of the country and population densities,
(3) All sii^nificant t;^,rpes of plant operation,
(4) All significant types of distri"bution methods.
Percentage of representcotion required
The apulicant gvouv should include a sufficiently high 1022,3
proportion of enterprises of ea.ch t^^pe so that the mere number of
those included, as compared with thore not included, will give
rise to a strong probability that those who ha.ve been silent would
concur ii they chose to speak. For exaiaple, in an industry with
widely scattered units, a group consisting of even less than half
from each significant class or t;rpe , if properly distributed,
might viell give rise to the inference that such group reflected the
views of the industry as a whole. On the other hand, in an in-
dustry containing some 20 members, well known to each other and
readily accessible , a very high iDroportion of the 20 would have
to be included within the group before it coiiLd fairly be inferred
to reflect the opinion of the industry as a whole,
Representation for particul.ar purposes
Provisions proposed for a code which affect different 1022.4
members of the industry in varying degrees impose special re-
quirements of representation. Thus, a prohibition of a business
practice not loreviously regarded as essentially unfair, but
nevertheless detrimental in unregulated form to the best in-
terests of the industry, would require the representation of any
si,'2piif ica.nt class previously engaged in the practice.
Authorization to act
Generally the association or group delegates to a 1022.5
comiiiittee the pov/er to act on its behalf in formulating the code.
It must be furnished with credentials showing the extent of its
authority to act. Such authorization must be evidenced ''oj the
minutes of the meeting at which the committee was chosen, shov/-
ing who was in attendance at such meeting, and what the vote was,
and certified by the proper officer of such meeting,
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Inequitfible restrictions upon membership
Applicant associations and grop-ps must impose no inequit- 1023
able restrictions on admission to membership therein, (Act, sec 3 a).
In the case of trade associations such provisions are to be sought
in the association's constitution and by-lav/s. In the case of groups
previously unassociated. there requires only a showing that all mem-
bers of the indu!5try ^'vere invited to join.
Definition of industry
In order that membership may be denied to no one in the
industry, the definition of the industry in the association's con-
stitution should be as broad as that contained in the proposed code.
1023.1
MembershiTj restrictions
Membership should be automatically available to any mem-
ber of the industry who agrees to pay his dues and (if the
association wishes) coropily v;ith the code. Provisions reserving dis-
cretion to the association respecting admission to membership are
objectionable unless there is a factual showing that they have not
been invoked in the past. Any provision which would establish re-
strictions based on citizenship, race, color, creed, skill, time in
business, etc., is definitely inequitable.
1023.2
Dues
Dues, unless nominal, must be proportionate to volume of
business or some other reasonable factor. Dues of any substantial
size shop.ld be explained by submission of typical budgets of the
association. Initiation fees must not be unduly large.
1023.3
Voting
Voting on any basis other than one vote for each member
should be justified by a showing that it does not discriminate
against any class cf members, particularly those doing a small vol-
ume of business.
1023,4
Expulsion
The association should not have power to suspend or ex-
pel its members except for retirement from the industry, violation
of the code when such violation has been determined by a duly con-
stituted administrative or judicial agency, violation of the by-
laws, non-payment of dues or assessments, or judicially determined
bankruptcy or insolvency, permission of expulsion "for cause" or
"for conduct prejudicial to the best interests of the association"
is bad.
1023,5
Government of association
If there is a substantial delegation of authority to a
board of directors or an executive committee, such board or com-
mittee should hold office for no longer than one year and should be
responsive to the membership at large through the medium of special
meetings subject to the call of a minority of the membership at large,
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1023,6
-6-
Removal of inequi table restrictions
Upon determination that the constitution or by-laws of an 1023.7
association contains inequitable provisions the association should be
requested at the eE-rliest possible date to remove such provisions.
Where it is advisable that a code be approved prior to the removal
of such provisions, the code may be forwarded for approval if;
(1) A \vritten statement is obtained from the association,
signed by an officer of the association that (a)
the provisions will be removed or their removal urged,
(b) the provisions will be made non-operative pending
their removal, and (c) no members have been refused
admission or expelled or are at the present time sus-
pended because of the provisions, and
(2) The code contains a provision whereby the National
Industrial Recovery Board is given the power to
change the code authority if it finds the code
authority is not truly representative.
(3) If either (1) or (2) is lacking, the order of ap-
proval must require that the inequitable provisions
be removed within a stated period (generally 30 days)
from the effective date if the association is to
participate further in the activities of the code
authority,
Monoijolies
Codes must not be designed to promote, nor may they per- 1024
rait, monopolies or monopolistic practices, (Act, sec, 3 a).
Fixed tests to determine this question cannot be laid down. It
must rest uroon an examination and appraisal of the effect of each
code provision. Each code must contain an express prohibition of
monopolies and monopolistic practices, (Model, 821),
Tests for monopoly
Where there is any ireason to fear monopolistic effect, 1024,1
the question should be examined from the following viewpoints:
(1) Character and extend of existing competition,
(2) Reasonably anticipated effect thereon of code
provisions,
(3) The factors, if any, including any provision tend-
ing toward price control, concerning which a
question of tendency toward monopoly has arisen
or might arise.
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Record of -partic-a].ar industry
If the industry hs.s a history under the anti-trust laws, 1024,2
actual cases which have been decided may indicate the points which
have to he answered.
Small enter-prises
Codes must not be desif2;ned to eliminate or oppress small 1025
enter-orises nor operate to discriminate against them. (Act, sec,
3 a). In pa-rt, this question overlaps that of monopoly, in that
whatever tends to "oroduce monopoly tends also, of course, to op-
press small enterprise. There are also sources of such oppression
which are apart from monopoly. Again, no fixed tests to determine
this question can be laid down. The conclusion must rest upon an
examination and appraisal of the effect of each code provision.
Each oode must contain an express prohibition of elimination and
o-npression of and discriminations against, small enterprise,
(Model, 821).
Facts to be examined
Determination of the effect upon small enterprises re- 1025,1
quires examination of the number of such enterprises which have
joined in the application, the conditions affecting such enter-
prises before the submission of the code, and the probable effect
of code provisions upon such conditions.
Hearing
Where a code affects the services and welfare of persons 102S
engaged in other steps of the economic process, such persons shall
have the right to be heard prior to approval of the code by the
President, (Act, sec, 3 a). Since all codes do generally have
such effect, hearing prior to approval is mandatory.
Notice of hearing
The reasonable execution of this requirement necessitates 1026,1
adequate notice to all such persons of the time and place of hearing,
Non-?/aiver of Constitutional rights
Neither the Government, nor any member of industry, waives 1027
xiT can properly insist that the other has waived any Constitutional
right pertaining to the Government or to any individual by approving,
assenting- to, or cooperating under any code of fair competition
(Ex. Order 6949).
Jurisdiction of codes
Multi-pie coverage
Due to the complexity of the organization of business, 1031
it is impossible to avoid situations ?;here one establishient will
be under more than one code. It will be under a code only to the
9307 ..--.- X . ,
-8-
extent its Toroducts or fimctions are T.'ithin the definition of the 1031
particular industry. Every effort will be made to encoiirage the
alignment of industries and cones so that overlar)ping is prevented
as fully as possible.
Professional Functions
Coc.es i.7ill not be applied to professions in t'crns of 1032
functions. Such professional persons shou].d be controlled, if
at all, through the provisions of the code for the industry to
which they are attached.
The public interest
Every code provision must be examined as thoroughly from the 1040
standpoint of the public interest as from the st;\ndpoints of indus-
try and labor. The public interest is that of the v/hole body
politic — of everyone as citizen, consumer, rnd taxpayer, In deter"
mining the propriety of a particular provision, no interest is
paramount; all three must be nicely balanced; each may have some
concessions to make. It is often overlooked that frequently one
interest, by accepting an apparent particular disadvantage, gains
a great genera,! advantage in the long run. Thus, the public in-
terest, by co:iceding decent wages to labor and a reasonable profit
to industry, ives hostages to fortune for the longer pull. But
this is only a qualification upon tho general principle that neither
labor nor industry must benefit at the eypense of the public interest.
Amendment of codes
Right to modify codes
Section 10 (b) of the Act, empo'.Tering the President 1051
from time to time to cancel or modify any order, approval license,
rule or regulation under the Act, is required to be inserted in
each code. It should be set forth in full in all codes, includ-
ing supplemental. (Model, 811).
Amendinent by industry
In addition, the right shoiiLd be reserved to the in- 1052
dustry to apply for amendments in the same manner, and subject
to the same conditions, as in the case of ap-olications for codes
(Model, 812). The industry may delegate to the code authority
the full power to represent it in applying for amendments, or
it may reserve such pov/er to itself.
Supplemental codes
Where s]?ecial conditions affecting any portion of an in- 1060
dustry require special provision, a supplemental code may be
applied for by such portion of the industry. Since the basic
code applies generally to the entire industry, no supplemental
code affects any of its provisions unless it expressly super-
sedes it, Qi course, if the basic code provides that supple-
mental codes must be consistent therewith, no provision of any
supplemental code may be inconsistant with a basic code provision,
9307
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Re^ional codes
Exce-:)t in most imusual circumstances, regional coden shoiild
not "be "oermitted in industries ^jhich distribute on a nation-wide
basis. The problems of industry cannot be solved on a piece-meal
basis.
1070
Other codes and a^'reements
In so far as applicable, these substantive guides apply to other 1080
codes and agreements under the Act as vrell as to codes which are
applied for by industries.
Codes p:. escribed by the President
The President has not yet exercised his authority to
prescribe codes (sec, 3 d) or limited codes dealing v.dth standards
of emplojTnent (sec, 7 c). Should he exercise such authority'', it is
to be assumed that such codes x-^ill accord '"Ith the policies ajj-
plicable to voluntary codes.
1081
Agreements
president's Heemuloyment Agreement
The President exercised his authority under section 4 a
by entering into the President's Re -employment Agreement vdth a
very large portion of trade and industry. Its simple terms conformed
to the policies for codes. These agreements have been largely super-
seded by codes.
1082.1
Other agreements
Soth by e:^^press authority contained in the Construction
Code and thj general authority contained in section 7 b of the Act,
the President has approved a number of agreements between employers
and employees in that industry respecting labor standards. These
have conformed to the policies governing codes. No other agreements,
as provided in either section 4 a or section 7 b, have been approved.
Licenses
1082,2
The President did not invoke his authority to license
business (sec, 4 b) , and, by the terns of the Act, that authority
expired on June 16, 1934,
1083
Restrictions upon imports
There have been relatively only a fev/ applications for
action as provided in section 3 e. Determination of such action is
largely a factual matter and controlled by the circumstances in each
case. No general policy has been developed in dealing therewith.
1084
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Miscellaneous consi derations
Necessity of factual showin^^
It cannot be too strongly emphasized that each proposal 1091
of a code provision requires a factual shov/ing of its necessity
and its propriety. It is not sufi'icient that an industry desires a
particular -orovision. The need must be shorrn. The propriety must
be shovrn. Of course, there are certain classes of provisions (as
attested trade practices) the need and propriety of nhich have been
sho-iTn generally and for which a particular showing is unnecessary;
and there are certain standards (as in the case of hours and wages)
which are pre; iimptively proper. But as to provisions other than
these, KSA cannot fairly be asked to accede to a proposed provision
unless its need and its propriety are clearly shown.
Degree of industry sup'oort required for proposed actions
It is not the intention of democratic ijolicy that merely 10S2
because a trade majority decides one particula-r method of doing
business is more convenient than another it should be \7ritten into
law. Majority action must be qualified as follows;
(a) If there is an important social gain to be secured
through a mode of action u^pon which the great major-
ity of the industry is agreed NSA is bound to respect
it.
(b) If the overwhelming majority of an industry wants to
bind all members to a course of action in which there
is no particular harm and to v/hich there is no strong
objection from any source }TRA may accommodate itself
to the sentiment,
(c) If there is no social issue at stake, and if the ob-
jective of the majority'- is definitely opposed by the
minority or by a considerable group of the customers
of the industry, there is clearly no obligation on
HEIA to sanction the operation of such provisions under
these conditions.
Enforceability
Since law is useless beyond the point to vdiich it is 1093
capable of enforcement, no mandatory provision should be included in
any code if it is incapable of reasonable enforcement. This princi-
ple does not prevent the inclusion of provisions v/hich are otherwise
acceiptable in the form of standards which define and encourage right
conduct without commanding it.
Uniformity of language
In the interest of simplicity of administration and ease of 1094
securing compliance, it is higlily desirable that all codes follow the
standard phraseology in the model code.
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Trades
Industry and trade are distinguished in the Act 1095
(sec, 3 a), "but for convenience and brevity "both are referred to
in these Guides as industry. The word uill he understood to have
equal application to trade.
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DEFINITIONS
In order to avoid aratiguities, ^iiy term whose intention may 1100
be dculDtiul should "be carefiaiy defined. Definitions may also "be
carefully defined. Definitions may also "be used to facilitate brev-
ity of expression; e.g., the definition of "Board" as "National In-
dustrial Eecovery Board" permits the use of the single word througout _.
the code.
Geographical appli cation
In the a.bsence of strong reason to the contrary, codes should 1110
have full geographical application and should, therefore, cover ter-
ritories and insular possessions a-s well as the States, except that
the Philippine Islands are not within the scope of the Act, The codes
have this broad anplication without requirement of specific defini-
tion. Short of naming all of the territory affected, any terms which
may be used by way of definition axe vague, and it is, therefore, de-
sirable to avoid attempted definition.
Application to territories and insular -possessions
Tii/hile, in the absence of strong reason, codes should have 1111
complete geographical application, it is recognized that conditions
in territories and insular possessions may demand special treatment.
These ere best provided for by supplemental codes, rather than by
independent codes,
LeaJiin^!;- of "United States"
Adjudicated cases seem to define "United States" to include 1112
Alaska, and Hawaii, but no insular possession. The lan^juage of section
7 d might be construed to modify this application. Consequently,
the e:roressipn is indefinite and should not be used. If exceptional
reason exists for territorial lim.itation, then that territory to be
excluded should be specifically mentioned. The territory in question
comprises Alaska, Ha.waii, Puerto Rico, the Canal Zone, and the Virgin
Islands.
Ileaning of "Continental United States' '
'The term, ^'continental United States, is also vague since 1113
Alaslca is a. portion of the continent and it is not clear whether the
intent is to include or exclude it. The use of the term should be
avoided.
Industry or trade
Since the definition of the industry or tra.de determining the 1121
applica.bility of the code, the greatest care is essential in the con-
struction of this definition (Model, 201),
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Trc.de d.isti3iruished from industr.y
It is provable that industry, in its "broad sense, 1121
includes trade. Lut trade is ordinarily understood as referring
to the distriLiutive processes as distinguished from the -oroduc-
tive,
JDefinition should "be exclusive an well as inclusive
3::clusion from the definition of activities not intended 1122
to "be covered wider the code is equally as necessary as the inclu-
sion of activities intended to "be covered,
Overla'O'ping
It is most essential that no definition overlap or con- 1123
flict v/ith the definition in another code.
Activities customarily incidental
All activities custom.arily incidental to the conduct of 1124
a "business are included without necessity for specific enumeration
in the definition. Thus the definition of a manufacturing enter-
prise includes the purchase of raw material and the primary sale of
the finished product whether or not the definition specifically
enumerates then. In case of douht, however, it is "better to specify
the activity.
Suo'ijlemental activities which may not "be incidental
liflrien it is desired to include activities not o'bviously in- 1125
cidental, such activities should he carefully specified. Thus, even
where it is customary for manufacturers to install their product, it
is desira,"ble that the definition specifically cover this activity.
Of coiu-se, in the a"bsence of representation of other installers, the
definition can cover only installation "by mc^nufacturers.
Controlled enter-prises
In order to prevent evasion of code provisions, the de- 1126
finition should include any controlled enterprise which performs any
of the f-'onctions incidental to the industry. Otherwise, "by the or-
ganization of sales affiliate, the primary sale of the product might
"be removed from the operation of the trade pra-ctices of the code.
Con-i,unctive or disjunctive character of z e veral functions
Miere the definition of industry includes several activi- 1127
ties, care should "be taken to indica.te v/hether the -inerformance of
all or only one is essential to mem"bership in the industry. 'The
word "ejLid" is not a.lways clearly to "be taken in the conjunctive
sense. Thus, './here an industry is defined as the "manufacture and
insta,llation" of a product, it may not "be clear v;hether one v/ho
manufactures "but does not install is a raem"ber,
9307
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-14-
ScQ-pe of "manufacture"
In raanLifacturin^ codes the word "manufacture" should "be 1128
carefully defined, particularly with reference to whether it is in-
tended to include mere portions or the complete process of producing
a completed article; whether it is intended to include only concerns
performing the actual work or to include also those which ha.ve the
products physically produced for them "by contract. (Model, 202),
Memher of industry
A memher of the industry or trade is ordinarily "best defined 1130
as any individual, firm, or corporation engaged in the industry
(Model, 203).
Ezem-ption in towns under 2500
Employers engaged only locally in retail trade or local 1131
service trades or industries who operate not more than three es-
tablishments and -^hose iDlace or places of business are located in a
town or towns each of less than 2500 population, and not in the
immediate trade area of a city or to^m of larger population, as de-
termined "by the Administration, are exempted from those provisions
of approved codes which relate to hours of employment, rates of pay,
the minimum price at which merchandise may he sold or services per-
formed, and the collection of assessments, exceiDt in so far as any
such employer shall signify to KRA his intention to "be "bound "by such
provisions. (Ex. Order 6710).
A-p-plication to mem"bers
Codes "bind all members of the industry regardless of assent 1132
or dissent, exceiDt ths-t any provision whose application specifically
requires assent is not binding without such assent.
Classification of members
Members of an industry should not be classified into 1133
groups, subject to imDortant differences in restrictions or pro-
visions, when the demarcation between such groups is arbitrary or
so narrow that a small difference places employers in one group or
the other. As for example, where a man with ten employees is in
one grou]p, but with nine would be in another.
Requirement of "establishment"
Since the meaning of "establishment" is incapable of ex- 1134
act definition and is, therefore, o^en to abuse, it is improper
t« stipulate as a Qualification for member^hir) in an industry
that eo.ch nomber shall have an "established" place of business.
Separate conduct of business
To require that each member conduct his business under the 1135
code separately from other businesses in which he may be engaged is
likely to cause hardship to small enterprise and is, therefore,
improper,
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Emiployer
Employer is ordinarily test defined as any member of the indus- 1140
try or trade "by whom any employee is employed or compensated
(Model, 212). Since a member is not necessarily an emioloyer, the
definition of the latter does not obviate the necessity for defini-
tion of a member,
Em-ployee
Employee is ordinarily best defined as any person engaged in 1150
the industry or trade except a member. (Model, 211).
Classes of employees — clarity of definition
Classes of employees subject to varying conditions of em- 1151
ployment should be carefully defined so as to avoid ambiguity. The
term "processing employees," for example, is extremely vogue, leav-
ing doubtful whether foremen, timekeepers, cleaners, and other per-
formers of incidental tasks are intended to be included. Likewise,
the cirprossion "laborers," which sometimes is intended to refer
only to manual labor, and sometimes more broadly. Of course, it is
desirable, so fa,r as possible, to avoid any discrimination between
classes of employees. Wliere it is necessary, it is best to specify
and define particular excepted classes (e.g. watchmen, firemen, truck
drivers), thus avoiding any necessity for characterization of the
general body of employees.
Classes of em-ployee — reasonableness of definition
Definitions of particular classes of employees should not 1152
contain requirements materially at variance with common acceptation,
so as to result in hardshi-^ and discrimination. For example, many
competent skilled workmen might be barred by a definition requiring
a stated number of years' eicperience.
Light occupations
A light occupation is one requiring neither substantial 1153
physical exertion nor any educational qualifications. In particu-
lar industries which distinguish light occupations, such occupar-
tions should be carefully defined.
Professional employees
The words "professional employees" shoiild not be used 1154
without a list of the particular occupations intended to be in-
cluded under the term, since experience h-is proved that standing
alone it is so indefinite as to cause considerable uncertainty in
allocating individual classes within or without this category.
Ap'or entice
An apprentice is a person of at least 16 years of age v^ho 1155
has entered into a written contract with an employer which provides
9307
-16-
for at least 2000 hoars of reasonr.-bly continuous employment and 1155
particir)ation in a progrrm of training approved by an agency de-
signated by the Secretary of Labor. (Ex; Order 6750-C| Model,
213). A code may make other provisions, but any eraoloyer may
elect to follor; these. If the code purports to folio-.? the execu-
tive order, its provisions must not be ].ess th&Ji the minimum es-
tablished thereby, (Fed, Coram, on Apnr. Training, March 25, 1935),
Learner
A learner is an employee \7ho has worked less than a 1156
specified number of hours (consecutive or non-consecutive) at
the occupation in rhich he is engaged, (Model, 241). Ordinarily
such number of hours should not exceed 240. IJo upper age limit
should be placed on learners.
Sundry definitions
Act
For convenient reference the term ''Act" should be de- 1191
fined as meaning Title I of the National Industrial Recovery Act
of June 16, 1933,
Southern states
In general, the southern states may be said to com- 1192
prise Virginia, West Virginia, North Carolina, South Carolina,
Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi,
Arkansa-s, Louisiana, Oklr.homa, Nev/ Mexico, and Texas,
Hone '^f living quarters
The terms "home" or "living quarters" as used in home- 1193
work provisions raea.n the private house, private apartment, or
private room, whichever is the most extensive, occupied as a home
by the employee and/or his family (Model, 232),
Population
Population is determined by reference to the latest 1194
figures of the U, S. Bureau of Census. (Model, 223).
Effective date
A code becomes effective UJDon the date of its approval 1196
unless some other date is specifically stipulated in the code.
Ordinarily it is desirable to define the effective date as the
second Monday subsequent to the date of approval. (Model, 841),
Accountant
Some codes vest duties in public accountants, who are 1197
quite generally referred to as "certified public accountants."
This is a. common usage which overlooks the fact that there are
other public accountants equally suitable to perform the same work
as certified public accoLmtants, Whenever any code provision im-
9307
-17-
poses duties on "oublic acco-ontants, therefore, it should read in 1197
manner such as the iollo?/ing: "by a certified public accountant or
by an accoun.tant having the equivalent in qualifications and abilitj'-
of a certified public accoimtant, provided, horrever, that as to any
service to be performed in any pr.rticular state or governmental sub-
division of the United States, such accountant in any event shall
have the qualifications required by law in such state or governmental
subdivision of the United States for the performance of such service,"
Impartial or confidential agency
An agency, to be impartial or confidential, must be un- 1198
biased as bet\Yeen the code authority and the industry as a whole,
and as between individual members of the industry, particularly where
one of the members concerned may be a member of the code authority.
Obviously, therefore, the code authority cannot act as an impartial
or confidential agency, nor can its secretary. The a;p;oroval of N3A
is essential to the determination of its impartial or confidential
character.
9307
-18-
HOURS
^m-'jloyevs shall comply vith the maximum hours of lator ap- 1200
proved or prescrited by the President (Act, sec, 7 a). Accord-
ingly, every code will make .provision for maximum daily and weekly
hours.
Weekly hours
The limitation placed upon hours must necessarily "be a com- 1210
promise between the requirement of reemployment and the ability of
industry to adjust itself to the change in operating conditions.
Experience under present codes shows that, for the majority of in-
dustry, 40 hours per week is the lov/est maximum presently practicable.
Accordingly, in the absence of convincing showing to the contrary,
no ei.iployee r.dll be permitted to work more than 40 hours per week,
(Model, 501,302).
Hours in allied industries
Where hours have been established in one code, there is 1211
a presumption for similar hours in the codes of allied industries
with like operating conditions, both because of the finding of fact
in the first instance and because disparate hours might be discrimina^-
tor:^.
Exceptions; by industries
Maximum hours may be fixed in particular industries at more or 1220
less than 40 per week upon convincing evidence of reason therefor.
The follo\7ing are some examples of acceptable cases.
Continuous process industries — 36 hours
Some industries operate on continuous processes em- 1221
ploying four shifts. In such cases, where it is practicable to
suspend operation on Stmdays , er.ch em-oloyee will work 36 hours
per v;eek, end. his hours may properly be so limited.
Continuous process industries — 42 hours
If the impracticability of suspension of operation on 1222
Sunday is demonstrated, maximum hours of 42 may be permitted. But
see 11-1271 respecting provisions for days off.
Retail trades
Employment in retail trade has customarily been at longer 1223
hours than in industry generally, and to reduce such hours presently
to a maximum of 4-0 is recognized as impracticable. The hours per-
mitted should be reasonably proportioned to the customary hours of
store operation.
9307
-19-
Special classes of em-ployees
Other than the standard maximum hours may he provided for 1230
special classes of employees upon adequate showing of necessity'-
therefor. (Model, 303). Certain classes of employees have been
generally recognized to he properly so excepted, viz:
Service employees
The normal operation of a plant is sometimes dependent 1231
upon certain service employees workin.? longer than the general
body of employees. Thus, the presence of firemen and engineers is
often required earlier than other employees in order that power
and heat may he available. Maintenance employees, shipoing crews,
pnd truck drivers may he required for longer hours for like reasons.
Where such necessity is shov.Ti, longer hours are proper. Such hours
will generally he limited to 45 per week, since one hour additional
per day will ordinarily meet the requirement.
Executives and supervisors
The time of executives and supervisors and their 1232
secretarial assistants is not alwaj^'s amenable to limitation. It is
proper, therefore, to permit no limitation of their hours. But to
insure that this exception he not too broadly applied, it "'ill be
limited to persons whose rate of pay amoujits to not less than $35
per week.
Professional, scientific, and technical employees
For similar reasons, lorofessional, scientific, and techni- 1233
cal eraployees may be excepted from limitations of hours, subject to
the sai?.e condition respecting rate of pay. Such classes of persons
should be carefully defined to insure certainty in the application of
the provision.
Commission and travelinr2: salesmen and collectors
The earnings of commission salesmen and collectors depend 1234
peculiarly upon their own efforts. Not only would it be unfair to
deny them f ull scope for their energy, but such a provision would be
difficu].t of enforcement. Accordingly, no limitation of their hours
is required. Nor is it practicable to place limitations upon salesmen
and collectors who travel.
Watchmen
The work of watchmen being less arduous than other forms 1235
of emplojnnent, they may be employed for not more than 56 hours per
week,
Ap'orentices
An apprentice ( 11-1155) may work in excess of the code 1236
hours upon authority to his employer from the agency designated by
the Secretary of Labor. (Ex, Order 675C-C; Model, 409). If code
hours are 40 or less per week, the hours of instruction under pub-
9307
-20-
lie authorities nay be in addition thereto, but the total hours 1236
shall not e^cceed 44. (Fed. Comia. on Appr. Training, March 25,
1935).
Mixed employment
It is desirable to insert a specific provision Trith re- 1237
lation to the hours of emriloyees performing \7ork in tno categories
of employment which have different limitations of hours.
Averaging of hours
With certain limited exceptions, any averaging of hours is 1240
undesirable. Sufficient flexibility is available from the pro-
vision permitting unlimited overtine at the overtime rate of pay
(11-1250).
Office emT3loyees
The hours of office employees may be averaged over 5 1241
weeks in order to provide for the monthly peak of accounting,
billing, collecting, and inventorying, 3ut such employees should
in no week be permitted to work more than 48 hours, should be
limited to 9 hours in a day, and the Drivilege of one day off in
7 should not be impaired.
Continuous process employees
The hours of continuous process employees may be 1242
averaged over two weeks in order to provide for days off,
T/atchmen
For similar reasons, the hours of watchmen may be 1243
averaged over t:ra weeks,
EmTployrnent for less than -period of averaging
Where hours of labor are permitted to be. averaged, 1244
the code should make definite provision for the situation aris-
ing where a worker is employed for less than the permitted period.
Generally, pay at overtime rates should be required if the pro-
rated hours exceed the average limitation.
Time lost due to inclement weather
In certain outdoor industries where working time is 1245
dependent upon weather, it is proper to permit time lost due to
inclement weather to be made up in subsequent weeks. But this
should be limited to the 5 weeks ensuing upon such inclement
weather, hours per day should nevertheless be limited to 9, and
it should not impair the privilege of one day off in 7,
Q
9307
-21-
Qvertime
Tiie limitation of hour*-, with no exception to take care of 1250
fluctus.tion in the load factor, or even ^^ith provision for certain
■oeak periods, places too great an administrative "burden mjon in-
dustry end NRA., and deprives industry of the simple elasticities
to which it is almndantly entitled. On the other hand, a require-
ment of extra pay is a sufficient encouragement to hire nevj help
and therefore a sufficient deterrent against ahuse of an overtime
i:)rivilege. Accordingly, overtime nay "be permitted ^7ithout liraita^
tion, conditioned upon the payment of 1^ times the emplo3'-ee's
nonaal rate of pay,
Pea::s and tolerances
For reasons str„ted in II-125C, peaks and tolerances are 1251
unne ce s sar;^'' and ■'undesirable,
Emergencies
Overtime vrork on accoijnt of emergencies should "be suV 1252
ject to the requirement of over tine pay as specified in 11-1250,
and therefore need not be s-oecially provided for.
Extra "jay for overtime
All working time permitted to any emrjloyee in excess 1253
of his normal maximum hours will be compensated at l.V times his
normal rate of pay. In the case of piece workers, the overtime
rate is l-i- times the normal piece rate,
Daily hours
No enrployee will be permitted to work more than 8 hours in 1250
any 24 (Uodel, ZCl, 302), except where in special cases the weekly
hours may exceed 40, and in such cases the d&.ily hours '^ill be
limited to 9 in any 24,
Days off
ITo employee will be permitted to work more than 6 consecu- 1270
tive days. Certain exceptions are jjermissible , viz: (Model, 304).
17orkers on continuous processes
In the case of industries with continuous operations or 1271
with rotating shifts, not more than twelve days may be permitted in
any -.ourteen day T)eriod,
Watchmen
Watchmen may be permitted to work not more than thirteen 1272
days in any fourteen day period, *
9307 1273
-22-
Emerg:ency maintenance work
Maintenance and repair nen may be permitted to ^ork on 1273
days othenvise prohibited T7here such .'ork is necessary to the pro-
tection of life, safety, health, or property, or to the continiied
operation of the plant. For all ^.vork on such d^iys employees rrill
be paid not less than ly tines their normal rate of pay.
Holidays
In addition, employees will not work on holidays. Since 1274
holidays vary among the several states, the tern will be specifi-
cally defined as comprising Hew Year's, Washington's Birthday,
Llemorial Day, Independence Day, Labor Day, Thanksgiving, and Christ-
ma.s.
Sunc-ry provisions
Id.le time
Time required to be spent at the place of employment or 1291
in connection with the discharge of d.uties of such employment , is
a portion of the time of employment even thou^ the employer may
have no rrork for the employee to perform. An employee is entitled
to his regular rate of pay for such time, includ.ing the overtime
rate when applicable, (Model, 431), In view of the varjring situa^
tions in d-ifferent industries, it will be necessary to adapt the
language of the code provision thereto.
EmT^loyer working''- as employee
In a number of industries in which there are many small 1292
units, it has been alleged to be unfair coax»etition for working
employers to be permitted to work more than the maximum hours
allowed for employees. The importance of the problem depends upon
the cl^aracter of trie l-ndMstrj, In most cases, the operations of
such persons are of such little significance in the total activity
of the industry as to have little effect. Where they are of im-
port, the question immediately arises whether it is an industry in
which regulation is feasible. Of course, it is proper to forbid the
evasion of labor lorovisions by giving proprietorshiu status to
persons who are really employees; in most instances this type of
evasion is prevented by the prohibition of subterfuge ( 11-1492),
Eours of o-peration
Proposal to limit trie hours of operations by fixing 1293
starting and finishing hours na«y riroceed either from a desire to
regulate production or from an intent to support enforcement of
labor provisions. It is a type of meticulous regulation not to
be encQ-Djraged, In its former aspect, it is discussed in connec-
tion with the control of production ( 11-1650), Where there is a
definite showing that the limitation of shop hours is needed as
an important support to enforcement of labor provisions, it may be
entertained, but only if there is no effect to restrict production
9307
-23-
and T7here it will cause no embarrassment to other industries. The 1293
limitation of shop hours cannot he applicable to employers or
proprietors (see 11-1292).
Split shifts
In certain industries the practice of breaking the work- 1294
in§- day of the employees into t'^ro or more periods divided by periods
of lay-off for several hours or more has been recognized as a parti-
cular evil. In such cases there should be appropriate requirement to
make the hours of work consecutive or as nearly so as feasible.
Night ^7ork
The labor of man should, desirably, be confined to the 1295
daylight hours, and therefore employment should be limited to a
single shift. Those industries accustomed to the use of more than
one shift should undertake consideration of the practicability of
such a limitation. Particularly desirable is the elimination of
the "graveyard" shift,
Dual employment
No employee may be permitted to work for two or more 1296
employers in excess of the time he might work for a single em-
ployer (Model, 305).
9307
-24-
WAGES
Employers shall comply with the minimimi rates of pay prescribed 1300
"by the President (Act, sec. 7 a). Accordingly, every code will make
provision for minimiim hourly or weekly wages, or both, and no em-
ployee sho-uld "be excepted therefrom.
Standard for minimum wg^e
The requirement of a mininium wage is that it afford to the 1310
employee a decent standard of living. This guide is, of course, in-
capable of exact application. It will vary according to considera-
tions of geography, population, and price levels. Other factors
will be pertinent in particular cases, llo absolute calculation is
practicable. The wage actually paid in 1929 will be of considerable
significance in most cases as a test of the aiDplication of the
standard.
Amount of minimum wage
Analyses of present conditions show that minimum wages of 1311
40 cents per hour or $15 per week for 40 hours conform reasonably to
this standard. There is therefore a presumption in favor of these
rates. ?or departure from them for whatever reason the burden of
adequate showing is on the proponent. (Model, 401, 402).
Tfeelvly wage as a minimum or rate
In any provision for a minimum weekly wage, it should be 1312
made clear whether it is intended as a minimum regardless of the
time actually worked, or whether it establishes a rate which may be
prorated when less than a full week is worked.
¥age rates in allied codes
Where rates have been established in one code, there is a 1313
presumption for similar rates in the codes of allied industries,
both because of the finding of fact in the first instance and be-
cause disparate rates would be discriminatory,
G-eneral excer)tions
Geogra-phical differentials
Eactors affecting geographical differences in costs of 1321
living are difficult of evaluation. Generally, it may be accepted
that lower costs in the south (11-1192) warrant a differential of
$1 a week in minimum rates. Yet it must be accepted that there is
no actual line at which the costs divide; that the difference in
costs is one of gradual geographical progression; and that arbitrary
dividing lines may in many cases provide discriminating competitive
situations. Accordingly, it is necessary to look at the conditions
in each industry and endeavor to draw the line in a practical
fashion. Sufficient evidence may be adduced in some cases to warrant
a third intermediate zone,
9307
-25-
PoTDulation differentials
The differences in cost of living incident to different 1322
densities of population are also difficult of evaluation. The pre-
sumption may "be accented, however, that such differences justify in
each geographical territory a decrease in the "basic minimum "by the
following amounts:
$1 per week in cities of from
100,000 to 500,000 population.
$2 per week in cities of from
25,000 to 100,000 population.
$3 per week in cities of from
2500 to 25,000 population.
$4 per week in places of less than
2500 population.
In order to support such differentials in particular cases, how-
ever, it is essential for the pro-oonents to show that no comioetitive
discrimination will result therefrom. The propriety of such
differentials may "be re'butted "by showing that equivalent differentials
have not, in fact, existed in the industry in the past.
Industries allied to agriculture
Since it is recognized that living costs in agricultural 1323
communities are relatively low, there is a presumption of propriety
of lower T/age rates in industries allied to agriculture,
S-pecial classes of em-ployees
Light occupations
If convincing evidence is adduced that light occupations 1331
(11-1153) exist in an industry, a lower minimum may "be justified.
Based on the considerations stated in 11-1311, the appropriate
wage is 35 cents per hour.
Protection of women from discrimination
Fnere women perform su"bstantially the same work as men, 1332
they will he paid the same pay; and where they displace men at
substantially the same work, they will "be paid the same as the men
they displace (Model, 407), Important differences in the conditions
as well as the actual processes of work should "be recognized in
interpreting the phrase, "substantially the same work." For example,
since work at night is more onerous than in daylight hours, it is not
"substantially the same work."
9307
--26-
A-Q-prentices
A person may be employed as an apprentice (11-1155) at a 1333
wage lov;er than the code miniirrum UDon authority to his employer from
the agency designated hy the Secretary of Labor (Ex. Order 6750-C;
Model, 409), Tlie "beginning wage shall not he less than 25^ of the
"basic wage for joiarneymen, and the average wage for the entire
period not less than 505^. (Fed. Coram, on A-o-or. Training,
March 25, 1935).
J-gnior em-ployees
In some exceptional cases, a minimum of 80fj of the basic 1334
minimum he.s been permitted for junior employees such as office boys and me
and messengers — generally minors. (Model, 404). To justify such
an exception there must be adequate showing that the work is light
and unskilled, and that the exigencies of the industry require.
Where such lower rate is r»ermitted, the number will be limited to 5^
of the total comparable class of employees (factory or office), but
every employer will be allowed at least one such emr)loyee.
Handics^-Qped workers
Regardless of provisions in particular codes, a person 1335
whose earning capacity is limited because of age, physical or mental
handicap, or other infirmity, may be em-oloyed on light work at a
wage below the code minimum, if the emioloyer obtains authorization
from the State authority designated by the U. S. Department of
Labor. Each em-olcyer must file monthly a list showing the wage and
hours of such persons employed by him. (Ex. Order 6606-F; Model, 408).
Unless specifically approved by the Department of Labor or permitted
by the code, certificates will not be granted for more than b')o of
the working force in an establishment, nor for wages of less than 75f^
of the code minimum. However, one such person is permitted to every
establishment, (instructions. Department of Labor, November 8, 1934).
Watchmen
By reason of their relatively lighter work, the hourly 1336
rate of watchmen may be less than that of other employees, but in
no event will such rate be so low as to result in a less wage per
week than received by employees at the basic minimum (Model, 403).
Compensation on commission basis
The fact that an employee is paid on a commission basis 1337
is no reason for excepting him from the minimum limitation.
Mixed employment
It is desirable to insert a specific provision with rela^ 1338
tion to the wages of employees perform.ing work in two categories
of employment which have different wage provisions.
9307
-27-
Learners
A sulD-minimxijn wage for learners ( 11-1155) is unnecessary in 1340
most industries. Where an industry needs highly skilled workers,
the apprenticeship provisions (11-1333) are available. Learner
provisions are open to the abuse of resulting in establishing a
sub-minimum wage group.
Requirements for learner provision
Provisions for learners may be permitted in exceptional 1341
circumstances but the burden of proof rests on the industry to
show — •
(a) That there is a need for new employees
who have had no previous experience in
the industry;
(b) That the unskilled rate is not applicable
to the new employees; a,nd
(c) That the occupations for which learners
are desired do, in fact, require a
significant learning period.
Minimum wage for learners
No learner will be paid less than the standard piece 1342
rate, if such be the method of compensation, and in no event less
than 80/a of the basic minimum. (Model, 410).
Number of learners
The number of learners employed in each establishment 1343
may not exceed b% of the total number of employees, but in any
industry where learners are permitted each employer may employ
at least one. (Model, 410).
Evidence of completion of period
Upon termination of a learner's employment, the employer 1344
will sign a.nd give him a card showing the occupation and the
number of hours employed as a learner. (Model, 411 ). When a
learner has comDleted his learning period, the employer will sign
and give him a card evidencing such fact, (Model, 412).
Piecework compensation
Minimum rates apply irrespective of whether an employee is 1350
actually compensated on a time, piecework, or other basis
(Model, 405)".
9307
-28-
Period for Computation of piecework ipay
In applying the minimum wage restriction, compensation 1351
is to "be computed on the "basis of not more than a 7-day period.
Where the conditions of production in an industry warrant, the
period may he reduced. Fluctuation in earnings due to faulty
management should not be the risk of the employee.
Overtime rates for pieceworkers
Where overtime is utilized, piece rates will he in- 1352
creased in the same proportion as overtime hourly rates.
Re.jected DJecework
No corarjensation can he claimed hy a pieceworker for 1353
spoiled work, hut this does not affect the ohligation to pay him
the minimum wage.
Fart piecework pay
Where an employee is engaged partly on a piece rate 1354
basis and partly on an hourly basis, he must be paid at least the
minimum while on an hourly basis, regardless of the amount of his
earnings while on a piece rate basis.
Wages above minima
In general, t]ie function of the codes is limited to fixing 1360
minimum wages, and there is no obligation or express authority to
devise s. schedule of wages for all the kinds of work comprised by
an industry. To do so incurs a risk of freezing such wages, and
thus setting a raaziraum contrary to the prohibition of the Act.
Further, the Act itself, in section 7 a, provides a more fluid
method for determining such wages. This general rule is subject
to certain exceptions, however, viz:
S-pecial kinds of emDloyment
As has already been indicated, it is proper to fix 1361
minima for special kinds of employment, as office employees, watch-
men, and apprentices.
Different rate bases
Where there are two or more types of employment with 1362
substantially different characteristics, there may be adequate
reason for differing minima. Tlius, office employees, who are
customarily paid on a weeldLy or serai-monthly basis, may have a
minimum different from that of factory emioloyees, who are
customarily paid on an hourly basis. So also, in mining indus-
tries, there may be a distinction drawn between employees whose
duties take them below the surface of the earth and those whose
duties do not,
9307
-29.-
Minima for skilled workers
A minimum wage may "be established for skilled workers 1363
as distin^ished from the imskilled workers to whom the basic mini-
mum is applicable. Care should "be taken, of course, accurately to
define the term "skilled workers" according to the custom of the
industry.
Wage schedules
Where wage schedules, establishing minimum hourly or 1364
piece rates for various classes of workers, have been arrived at
by collective bargaining, it is proper to include such wages in
the codes, since the method prescribed by section 7 a has been
follo\7e6.. This exception applies largely to industries, such as
the garment trades, where the negotiation of rates has become
settled practice.
Ad.justment of wages above minima
The general reasons why wage schedules should not be 1365
included in codes do not prevent a reasonable measure of protec-
tion to employees paid in excess of the minima. This may be
afforded by a Torovision which will restrict the reduction in
weekly earnings to a reasonable relationship to the reduction in
hours, ¥nere the reduction in hours is small, there should be no
reduction in weelcLy earnings. In either case, the percentage of
reduction in weekly earnings should not exceed one-half of the
percentage of reduction in weekly hours. In no event should
hourly raten be reduced. (Model, 406).
Fre-e:':i;3t irr standard
If it is found desirable to make use of pre- 1366
existing covjdit lor.s to determine hours or wages, it should be
made clear \;nat is the base upon which the standard is to be
calculated-- -whether the industry as a whole, the individual plant,
the particular class of employee, either throughout the industry
or in a particular plant, or the individual worker. It should also
be definitely stated how, if at all, the standards are to be
applied to i_istances not existing UTDon the date selected for de-
termining the standards.
Sundry ;orovisions
Manner of payment of wages
Payment of wages will be in lawful currency, or by 1391
negotiable check or draft, loayable on demand at par, when reason-
able facilities for negotiation are available. Pay periods may
not be longer than half a month, nor the holdover longer than
five calendar days. Wages will be exempt from deductions, except
those voluntarily consented to by the employee or authorized by
9307
-30-
law. Employers and their agents may not accept rebates. 1391
(Model, 421, 422).
Dismissal wage
The development of the practice of providing a dis- 1392
missal wage is undoubtedly desirable. It is not conceived to "be
the function of NRA, however, to extend general regulations of
hours and wages into this area. Such a provision may he included
in a code if the industry desires.
9307
-31-
OTPSH CONDITIONS OF EMPLOYI.ffiNT
Employers shall comply v/ith other conditions of employment 1400
approved or prescribed "by the President, This provision is re-
quired to iDe included in every code, (Act, section 7 a)
Collective "barffaininig;
Employees shall have the right to organize and Dargain 1410
collectively through representatives of their o\7n choosing, and
shall "be free from the interference, restraint, or coercion of
employers of labor, or their agents, in the designation of such
representatives or in self-organization or in other concerted
activities for the purpose of collective bargaining or other
rautuel a.id or protection. This provision is required to be in-
cluded in every code (Act, section 7a),
Free choice of organization
No en"-olo3''ee and no one seeking eraplo3rment shall be required 1420
as a condition of emplo;'.nnent to join any company union or to re-
frain from joining, organizing, or assisting a labor organization
of his ovjn choosing. This -nrovision is required to be included in
every code (Act, section 7 a). No provision which attempts to in-
terpret this or the preceding provision, or v/hich attempts to
qualify the industry's assent thereto, may be included in the code.
Child labor
It is generally accepted that the em;oloyraent of children 1430
reoresents an unfair method of com;oetition. The employment of
persons under 16 years of age will be forbidden (Model, 501),
Such narrov; exceptions as may be permitted, as beloY7 indicated,
require demonstration of propriety 'heyond a reasonable doubt.
Of course, where industries desire to set higher standards,
they should be encouraged.
Hazardous occupations
Employment in hazardous occupations of persons less 1431
theji 18 years of age is forbidden. In the absence of evidence
of necessity to the contrary, this should be stated as prohibi-
tion of all employment of persons under 18 years except in
specified occupations (as office boys and girls, messengers,
etc.) ■ (Uodel, 501), Where the ^prohibition is simply of
hazardous occupations, it is necessary for the industry to sub-
mit a list of such occupations within tv/o months. Where the
entire operation of the industry is hazardous , or where the
industry is generally free of employment of youths at the present
time, the provision can be greatly simplified by setting a blanket
minimum of IS years.
9307
-32-
Exce-otions to 16'^yer^T lira it
The only permissible exceptions to the 16-year limit are 1432
for part-time employment nhich does not interfere ^.vith schooling nor
deprive children of reasonable opportimity for play. Thus a limited
number of hours may be periiitted for employment of children over 14
years of a;^,'e on curb service at drug stores, or in the delivery of
newspapers or magazines. The burden is on the proponent of such en-
ploy, lent to shov tliat it benefits employee as well as employer. It
is essential in such cases that the scope and conditions of the em-
plojTaent be carefully defined.
Evidence of af^e
An employer will be deemed to have complied with the age 1433
■orovisions if he shall have on file a certificate signed by the
authority in his State ruthorized to issue such certificate.
Emplo:'nnent of minors 'oj parents
In the aiDplication of labor provisions to minors em- 1434
ployed by their parents, lav;s such as relate to compulsory shcool-
ing furnish useful analogy. These are universal in their convic-
tion tiip.t the proper developi-aent of children is sufficiently im-
portc'Jit to outweigh the judgment of the occasional parent who may
consider schooling unnecessary. But due regard must be had for
the fs.ct that performance of occasional chores coniiected with the
business of parents is natural enough, does not constitute em-
ployment in the real sense, and is hs^rmless so long as it does
not interfere with the health or schooling of the children.
Safety and health
Every employer must ma'^e reasonable provision for the safe;- 1440
ty and health of his employees at the olace and during the hours of
emplo^nuent (Model, 523), If the industry wishes to recommend stand-
ards to be used only as a basis for educational -.'ork, it may do so.
If it wishes to recoraxviend certain mandatory standards, it may do so.
In any event, the relationship of KHA is a cooperative one. It should
be noted that a special committee of experts has been established
which \7ill both assist industry in develo-oing standards when de-
sired, and advise ILlA. as to ar)-oroval of any proposed standards.
Industry committee
It is desirable that each industry'- create a committee on 1441
safet"^ and health which will study the number and causes of acci-
dents rjid health hazards in the industry and reDort a comprehensive
program.
Details of program
The program for safety and health should consider the 1442
following:
9307
-33-
(a) A statement of the avera.^'e accident experience of 1442
the industry; a comparison of the experience of
employers most successful in reducing accidents;
and a plan for uniform accident reporting in the
industry.
(h) Preparation of a statement showing the possible
"benefits to individual employers, individual em-
ployees, and the industry as a whole, through con-
tinuous organized safety efforts,
(c) A recommended plan for organized safety work for
various types and sizes of companies,
(d) Minimum standards for safety and health for the
industry.
Safety a,nd health in homework
In industries in which homev/ork is permitted, such work 1443
will he prohibited in any homes or "buildings v/hich are unsanitary
or unsafe on account of fire risks.
«
Stabilization of emr)loyraent
Ever"^ industry subject to seasonal or other fluctuations in 14-50
eraplojrment should undertake the study of its situation in order to
devise ways and means for the stabilization of employment to the
utmost extend practicable.
Homework
Homework, limiting the term to mean industrial work done in 1460
the hovae ( 11-1193) for wages paid by an outside employer, is a form
of labor which, des-Qite arguments of convenience and low cost, ha-s
usually been accompanied by low wages, long hours, and poor ^-^orking
conditions. Furthermore, it creates a state of competition unfair
to those emplojT-ers who maintain establishments where labor conditions
can be regulated. Present mU policy is the result of a long period
of stud^^ by a special committee.
General policy
Homework should be discouraged except where such action 1461
would work undue hardship.
Conditions under which homework may be permitted
Though an industry can show that complete abolition of 1462
homework will not be in the public interest, it should neverthe-
less be restricted so far as possible, endeavoring to malce the con-
ditions of home workers comparable to those of factory workers.
While the provisions of the next paragraph are conditions on the
prohibition of homework, they also express a proper measure of
restriction, and should be broadened only upon strong showing
(Model, 531).
9307
-34-
Exceptions to prohibition of homework
Every prohibition of homevrork, except in the food or 1463
allied products industries which contain prohibitions of the manu-
facture or 2Ti'0cessing of food in homes,' must permit a person to en«-
gage in homework at the same rate of wages paid in the factory if
a certificate is obtained from the State authority designated by
the 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 attenda.nce
on a person who is bedridden or an invalid and both
such persons are free from any contagious disease.
The euploj'-er shall keep such certificate on file ajid shall file with
his code authority the nrme and address of each worker so certificated
(Ex. Order 6711-A).
Problens in 'particular industries
Contract ir,'< of work
The problem of contracting out work is not a general one, 1471
but i^- confined to particular types of industries, being most -preva-
lent in the garment trades. This practice is susceptible ■....' use
as a .eaiis of evasion of codes, and should be so regulated as to
prevent such misuse. In most cases it should be possible to do this
by careful draftsmanship of the definition so as to bring such con-
tractors under the code. Where this is not deemed effective, the
code should prohibit contracting out work lonless the contract in-
cludes a requirement to abide by the code provisions (Uodel, 552),
Other provisions may be shown to be necessary in particular cases,
Gom'oany toiTCis and stores
TiiS problem of the company town is fo"and only in certain 1472
industries, No employer may require as a condition of em'olo;^,nnent
that his employee live in a house or buy in stores owned by the
employer (Model, 541), Of course, excerjtions will be necessary in
some particular instances, as v/here maintenance men must of neces-
sity live on company property, but in such cases the nature of the
workers so excepted and some fixed limitation on their number should
be specified.
Increase in work load
The problem of increase in work load is an acute one in a 1473
number of industries, but a difficult one to deal with in codes.
Code provisions which attempt to solve the problem by rigid prohibi-
tion of changes in work loa:ds and assignments do not constitute a
sound approach. The problem is best dealth with by collective bar-
gaining arrangements between employers and employees. Any attempt at
9307
-35-
control through code provisions must "be addressed to the conditions
in a particular industry.
Existin;:^- lar^s and a.^reements ^
IIRA, in seeking to establish minimuia standards, is not
necessarily defining the minima '.-hich represent the best social
standards. It must not "break do\7n .higher standards already set.
Therefore, such existing standards, while not, incorporated in the
codes, will not "'oe affected 'oy the codes (Model, 524),
1473
1480
Laus
No code provision supersedes any Federal, State, or
municipal law which establishes more stringent requirements as to
age of employees, wages, hours of work, or general working condi-
tions than are estaolished in the code.
1481
Agreements
No coc.e provision supersedes any agreement "between em- 1482
TDloyees and employers which Torovides higher wages, shorter hours,
or "better working provisions than those prescri'bed in the code, or
which prescri'bes specific methods of wage payment,
Worki?-en>s compensation
Workmen's compensation is generally covered "by State 1483
legislation and should "be dealt '"rith in codes only when a clear
case can be uade that the variation among State laws results in
undue hardships in certain areas.
Sundry provisions
Posting' of la"bor provisions
Every employer must post and keej) posted the la"bor pro- 1491
visions of each code under v/hich he operates, in accordance with
rules ajid regulations prescri'bed "by NRA (Ex. Order 6590-B; Model,
525),
Evasion by subterfuge
Codes will soecifically prohibit any attempt at evasion 1492
by subterfuge, such as by reclassifying employees, or the duties
of occupations, or change in method of payment, or by firing and
rehiring* (Model, 521).
Enticement of employees
While in certain instances the enticement of extremely 1493
skilled employees or those who are familiar with confidential in-
formation has become a definite ^^roblem, a prohibition of entice-
ment in general terms prevents employees from having the freedom
of the labor market in their efforts to better their conditions of
emnlojTnent, Such a cure is far worse than the evil itself, and,
9307
-36-
therefore, employees should, "be excepted from general enticement 1493
clauses. In those cases where a definite need can te sho\¥n to
exist the prohibition should be restricted to specified classes
of eniiployees.
Dismissal
For complaints
No employer shall dismiss, demote, or otherwise dis- 1494,1
criminate against any em-oloyee for making a complaint or giving
evidence vith respect to an alleged violation of a code provi-
sion (Sx. Order 6711; Model, 522).
Notice of dismissal
Fnile the prpxtice of giving adequate notice before 1494,2
dismissal is undoubtedly desirable, NHA should not make a special
effort to extend general regulations of hours and wages into this
area of personnel policy. The industry may make such provision as
it desires (Model, 551),
Night work for women and children
The question whether women and children should be per- 1495
mitted to work at night is one for State regulation rather than
for code regulation. Furthermore, in certain quarters there is a
definite insistence that it is a form of sex discrimination not
consistent with the attitude toward women in this day and age.
Vacations
Regulation of the practice of giving vacations should 1496
not be encouraged.
Retention of employment privileges
Code provisions stipulating generally that workers shall 1497
continue to enjoy any privileges which were theirs at some previous
time are extremely difficult of enforcement both practically and
legally, and should not be encouraged,
Trans^3ortation. meals, etc.
Where it has been customary for employers to reimburse 1498
employees for certain expenses, and where employees are being or
may be deprived fo such reimbursement, such mistreatment may
properly be prohibited. Provision is made elsewhere ( 11-1391 )
protecting minimum wages from infringement ''ay deductions.
9307
r
-37-
ATTESTED TRADE HEIACTIGES
Certain trade practices have "becorie a commonplace of our legal 1500
and business structure. Such may "be included in codes nith little
or no necessity of formal safeguards in the public interest being
expressed,
Misre'oresentation
Of product or services
No member of industry may use misleading or inaccurate ad- 1511
vertising or misrepresent any goods, credit terms, values, policies,
services, or the nature or form of the business conducted (Model,
701).
I'alse marking or branding
No member of industry may mark or brand goods so as to 1512
mislead customers respecting such goods (Model, 703),
i'alse invoicing
No member of industry may knowingly v.dthhold from or 1513
insert in a quotation or invoice any statement that makes it in-
accurate (Model, V02).
Defamation
No member of industry may falsely impute to a corapeti- 1514
tor dishonorable conduct, inability to perform contracts, question-
able credit standing, or make other false representation concerning
him or the quality of his \-oods (Model, 704),
Ar)-'-)roprir.tion of competitors' property
Misa'opropriation of trade marks
The use of any trade iiark or trade name nhich has pre- 1521
viously been adopted and used by a competitor is unfair and may be
■orohibited,
Co mine r c i al e sp i o na ge
Members of industry may be prohibited from Drocuring in- 1^32
formation res;oecting the business of any competitor, except with
his consent, when such information is properly regarded as confi-
dential or a trade secret. Such prohioition does not extend to in-
formation relating to a code violation.
Interference with contracts
Members of industry may be prohibited from wilfully attempting 1530
to induce the breach of contracts between competitors and their cus-
tomers "oy any false or deceptive means, and from interfering with the
9307
n
-38-
performance of such contracts rrith the effect of emharrassin; com- 1530
petitors in their "biisiness (Model, 708),
Inf rin.'-ement of territorial rights
The rit;3ht to contract an exc].usive sales territory, r)ro- 1531
vided it does not tend toward monopoly, is well recognized at law.
Any attempt hy a competitor to sell goods covered by such a contract
in the exclusive territory is unfair and may "be prohibited if the
goods are not of such character that the exclusive agency tends
toward monopoly.
Substitution of goods and services
No member of the industry may substitute goods other than or- 1540
dered by his customer without notice to such customer ajid opportunity
to refuse acceptance free of expense.
Price fixing and coercion
No members of industry may enter into agreement with other 1550
members to fix prices or atteia-ot to coerce any other members to
change, fix, or maintain prices (Model, 714),
S.'oecious threats of litigation
Members of industry may be prohibited from publishing 1551
or circ-j.lating unjustified or unwarranted threats of legal pro-
ceedings vrhich tend to harass competitors or intimidate their
customers (Model, 705).
Commercial bribery
No member of industry may give anything of value for the pur- 1560
pose of influencing or rewarding the action of an employee or
agent in relation to his principal's business without the knowledge
of such principal. This shall not be construed to prohibit advertis-
ing articles except as they may be used for commercial bribery,
(Executive Order 6464; Model, 707)
Secret rebates and other concessions
No member of industrj'- may make or offer secret rebates or 1570
other concersions, in money or otherwise. Services and lorivileges
should be extended equally to all customers of the same class
(Model, 706).
Trade practices not dealt with
There may be trade practices which have been held unfair by 1590
the courts or the Federal Trade Commission, but are not dealt with
by the code. In order to avoid any inference that the code is intend-
ed to supersede such situations, it should be provided that the code
has no effect to limit any such holding, TDrovided that such holding
is not inconsistent with the Act or the code. Of course, if the code
denominates as unfair a practice which has previously been held to
be fair, the code would govern,
9307
If
-39-
EXPERIMENTAL TRADE PHACTICES
Those trade practices which are still in the formative, or 1600
trial, or experimental stage, and which have not as yet "been fully-
adjudicated, may he included in codes only in conjunction with
appropriate procedures and expressly stated safeguards in the pub-
lic interest.
Eactual "basis
The inclusion of any such trade practice must rest u-oon 1601
a full, adequate finding of facts showing justification thereof
"by the particular industry concerned. This finding of facts must
reach far "beyond some "agreement" on the Toart of the industry
memhers; far "beyond "validation" "by a formal puhlic hearing.
Previous custom
Of such provisions, one that is founded on a previous 1602
custom of the industry has greater claim to acceptance than one
which proposes an innovation,
Com"binations of -provisions
It is particularly important to examine not merely an 1603
individual trade practice "but also any proposed com'bination of
trade practices. Sometimes a trade practice that is uno"bjection-
able if standing alone "becomes o'bjectionable when associated with
certain other trade practices.
Limitation on number of iprovisions
It is higahf desirable that only a small number of such 1604
provisions be inserted in any one code at the outset. This is
necessary in order to Toerrait inquiry adequate to establish the
findings of fact and careful supervision of operation in the pub-
lic interest. In other vrords, the -nolicy should be one of gradual
introduction of s\ich provisions in any particular industry so as
properljr to substantiate their worth.
Reservation of right to stay
Any of this class of provisions must include a provision 1605
empowering IIEA, after due notice, to stay the operation thereof in
case it proves to be not in tlie public interest.
Discriminatory provisions
It is difficult to discuss the subject of whether a 1606
particular provision is discriminatory without begging the question.
Obviously, an unsound provision is very likely to be discriminatory,
while a sound provision can har&ly be. If the provision in question
has not been accepted as wrong in principle, s.nd if it interferes
with the business practices of some of the members of the industry,
9307
r
-40-
the presiunption of discrimination is strong. In such case the 1606
burden is on the proponents to demonstrate the absence of
discrimination.
Sellin^-g; methods
The field of merchandising is one which should "be invaded 1610
hesitantly, if at all, for the Durpose of limiting individual
practice and initiative. To justify any such limitation must re-
quire a clear showing that the particular practice complained of
is unfair or injurious to the industry as a whole.
Terms of payment
Upon adequate showing of abuses, or possibility of 1611
abuses, a reasonable limitation, consistent with the custom of
the industry, may be -olaced upon terras of payment, cash discounts,
and datings. The provision must be no more than a maximum, per-
mitting the member of industry to establish his own terms on a
stricter basis if he desires. The limitation of terras may not be
permitted if it has any tendency to contribute to price fixing.
Extended dating
The prohibition or limitation of extended dating of 1612
invoices must depend upon convincing evidence of tangible ill
proceeding therefrom.
Consignment selling
There is nothing inherently bad in consignment selling. 1613
It is sometimes susceptible of misuse, as where it is employed by
large, well—financed concerns to take customers away from weaker
competitors. Nevertheless, in such case there must be strong
showing of injury to warrant its prohibition or limitation. In a
few instances the practice may be found to have unduly burdened
the cost of distribution. In addition to such factual showing in
the latter case, there ought to be practical unanimity among mem-
bers of the industry in order to warrant its prohibition or
limitation.
Contracts for future delivery
Limitations on the period for which members of industry 1614
may contract for future delivery are well outside the normal area
of code regulation. Generally a provision requiring members of
the industry to file their practices as to such contracts in ac-
cordince with the open price plan will meet any evil which gives
rise to a demand for this type of regulation. Where it is
reasonably clear that filing would be ineffectual, however, and
upon adequate showing of need, there may be limitation upon the
following conditions —
9307
-41-
Feriod of limitation
The maximiim contract period must "be reasonable with 1614,1
respect to the nature of the indiistry's products, and its trade
practices. It must not "be more stringent than the customary-
practice in the industry over a preceding period of at least
one year.
o
Special types of contracts
Adequate consideration must "be given to the necessity 1614.2
of providing for special types of contracts which may require ex-
ceptional treatment, such as contracts to furnish materials for a
specific project, or cost-plus contracts.
Compliance
Compliance must "be rea.sonatly anticipated to a degree 1614.3
which will avoid any suDstantial increase in the administrative
and enforcement "burden of l^TRA^
Effect on other interests
It must be assured that the provision will not tend 1614,4
to render production and employment less stable or "be unfair to
purchasers,
Forr. of sales contract
Uniform sales contracts are in the shadowland of policy. 1615
(llo reference is here nmde to the content of such contracts; it is
assumed to "be proper; otherwise, o"bviously, the contract form is
unaccepta'ble.) As a means of enforcing desira'ble trade practices,
and as a means of "better informing the customer of his rights and
o'bligations, much may "be said for them. Yet they constitute the
more meticulous, detailed species of regu].ation which for many
reasons it is desira"ble to avoid. The industry desiring such uni-
formity should he made aware that NRA is averse to such detailed
regulation, and should "be required to make an adequate case for it,
"before the provision can "be entertained.
Trado-in allov:ances
In some industries the fictitious inflation of trade-in values, 1620
"by deceiving competitors as to the prices at which sales are "being
made, and customers as to the values they receive for their money,
constitute a definitely unfair trade practice. Any casual, uncon-
sidered limitation of trade-in allegiances would offend against the
policies respecting price fixing. Where the evil is adequately dis-
closed, however, and failing any sounder remedy, a provision for
limitation of such allowances may he entertained.
Method of limitation
The limitation must in no case do more than determine a 1621
9307
-42-
maximura, "below which each member of industry is free to fix the 1621
amount of his ovm allowance.
Basis of 1 irai tat ion
The existence of the evil of extravagant allowance is no 1622
reason for emhracini^; the evil of the other extreme. The limitation
must he reasonable, or it will impose an equal hurden urjon commerce.
Nor may the allowance he "based upon arbitrary or hypothetical figures
of what the value should "be. The only proper "basis is a factual
showing of the prices of actual sales of such second-hand products
in the open market. Such prices may "be given a moderate adjustment
to allow for reconditioning and sales cost.
Advertising all owance s
Manufacturers or other vendors selling goods to distri"butors 1630
frequently desire to purchase from their customers an advertising or
promotion service which such customers can render. In doing so it
has been customary to make payment by "allowing" a certain reduction
from what would otherwise be the -orico of the goods. The payments
thus made have become known as "advertising allowances." Code pro-
visions declaring such Ellowances to be unfair would not change the
ba.sic facts that sellers must price their goods to buyers and that
certain buyers have promotion services which they desire to render
and for which the sellers are willing to "nay.
The evils and their remedy
The remedy for such suspicion, secrecy, confusion, and 1631
misrepresentation as may be connected with advertising allowances
lies in (Model, 741-744)—
(a) Clearly separating and thus establishing the
distinct identities of the two activities
which are involved.
(b) Causing that part of the advertising allowance
which is actually a price reduction to aio-'Dear in
prices, and if the industry has an open price
plan, to be reported,
(c) Causing that part of the advertising allowance
which is actually a payment for service rendered
to aiDTDear a.s such with a definite description of
the service and with such publicity, where
practicable, as will render less likely the pay-
ment of more than the comiDetitive worth of the
service.
No general -prohibition
Advertising allowances may not be prohibited generally by 1632
restrictions on the basis of products or types of distributors.
9307
-43-
Re"bates not to "be disffliised
The menbers of an industry may "be prohibited from desig- 1633
nating as an advertising allov7ance, promotion allovrance, or similar
term, any price reduction, discount, bcnuf:, rebate, or other form
of price allowance or concession, or any consideration for advertis-
ing or promotion services offered or given by them to any customer.
Service must be definite
The offering or giving of any consideration for advertising 1634
or pronotion services to any customer may be prohibited except where
the service is definite and s-oecific.
Separate contracts
Agreements for the purchase of advertising service from 1635
customers may be reouired to be in written contracts, separate from
sales contracts, and such contracts may be required to set out the
promotion services spe-^.if ically anf. com-cletely, together with the
r-recise consideration to be paid therefor, the method of determining
performance, and other proper terms of con6.ition.
Publicity
Seme arrangement for X/Ublicity may be made where effective 1636
machinery therefor can be devised. In considering any such arrange-
ment, care should be taken to avoid machinery so c':mberscme that its
costs will outweigh benefits to be granted.
Fremi^jzis and "free deals "
There should be no general prohibition of the use of premiums 1640
or "free deals." Usually it is the misuse of these, rather than the
use, which is objectionable, as where premiums are used to evade
the proper purposes of an onon price provision. Tae proper way to
prevent such evasion is by careful drafting of the provision in
question. lor ezaaiple, in an open price provision, it should be re-
quired that all terms and conditions of sale, including premiums,
be filed. Alth:>ugh there should be no general prohibition, the use
of premiums in the following ways may be prohibited:
Commercial bribery
The use of premiums or "free deals" in ways which in- 1641
volve commercial bribery in any form.
Lottery
The use of -oremiums or "free deals" in ways which involve 1642
letter;,'- in any form. Tne term "lottery" should be construed to in-
cluG-e, but without limitation, a.ny plan or arrangement whereby the
premi^jc or ^free deal" offered differs substantially in value from
customer to customer of the same class, except as a result of
differences in quantities rurchased.
93C7
-44-
Misre'oresentation, fraud, or deceTPtion
The Mffc^of vremixuiTs- or '^Tr ere' deals" -in. ways which involve 1643
misreTji-efjentation, or fraud, or deception in any form. The use of
any of the words "free", "gift", "gratuity", or language of similar
import in connection with the giving of premiums or "free deals"
cannot be declared deceptive in and of itself. But such use may "be
prohilDited if there is intent to deceive, or if it does in fact
mislead or deceive customers in some material particular.
Discrimination "between customers
The giving to any customer of nremiums or "free deals" 1644
which are not offered to all customers of the same class in the
trade area.
Production control
No general Dolicy has "been formulated res-oecting measures 1650
designed to control -Droduction. Experimental iDrovisions have "been
permitted in a numher of codes, em-oloying different devices:
machine hour limitation, production quotas, limitation of new
capacity. None of these has demonstrated a right to permanence.
Hours of o-peration
The limitation of hours of operation has already "been 1651
considered in its aspect as a means of suTo-oorting enforcement of
labor provisions (11-1293). As a means of controlling production,
it is suDject to what has been said above.
National resource industries
'The best case for -oroduction control can be made out for 1652
the natural resource industries. As to method, it must be observed
that the system of quotas authorized in the lumber code was not a
success,
Factu-al showing required
Without commitment as to loolicy, it may be said that any 1653
application for production control must be accompanied by strong
factual evidence of the necessity of the limitation. Such evidence
should present a -oicture of the industry's productive capacity and
the consumer's demand for the -oroducts of the industry, both for the
industry as a whole and for the individual members comprising it.
The data must reveal that the demand for the products of the industry
is far below the productive capacity of the industry, and that over-
production and its resulting evils have been a characteristic of the
industry, with the resulting evils of destructive price competition,
unfair competitive iDractices, and instability of employment. Any
limitation must allow ample room for substantial increase in demand
for every member of the industry.
9307
-45-
Standards of x)roduct
Standardization of product is not to be accepted as a universal 1660
prescription, nor is it usually a zone of action into which lOlA.
should project itself. In many cases, the prohibition of false
marking or branding ( I 1-1512) is a sufficient protection. Where
the industry discloses a strong sentiment for it, however, or where
a strong showing is made in the public interest, URA will lend its
cooDsration in the manner and UDon the conditions following
(Model, 761-767):
Standards committee
The code committee will establish a permanent standards 1661
committee, upon which government and consumer interests will be
represented,
formulation of standards
This committee will study and formulate standards in co- 1662
operation 7/ith the American Standnrds Association or the U. S, Bureau
of Standards, The code committee will submit such standards either
to the Association or the liureau for ap-croval. If the standards
committee disagrees, the code committee, with the aToproval of NRA,
may determine the standards to be siibmitted. After such review as
NBA raa^'- consider necessary the standards will be bind.ing on members
of ind.ustry.
Revision of standards
The standards committee will observe tlie operation of 1663
compliance with such standards, and will recommend revisions when-
ever necessity appears. S^ich revisions will follow the same
procedure.
Non-standard rroducts not -prohibi ted
The establishment of standards will not nrohibit the 1664
manufacture and sale of non-standard -oroducts which are accurately
labeled or otherwise clearly identified to customers, if such non-
standard products are in no way harmful to the users.
Design -oiracy
Each man should have the right, in the absence of contrary con- 1670
siderations of public policy, to the exclusive use for a reasonable
period of the product of his mind. There can be, therefore, no
fundamental objection to the prohibition of design piracy. The
difficulty of administration, however, is an objection seriously to
be considered. No industry in which design piracy is not a serious
problem should attempt to deal with the matter (Model, 771-779).
Registratio n of desi gns
Coupled with any prohibition of design -oiracy should be a 1671
9307
-46"
provision for registration of designs; otherwise the administrative 1671
problem is too difficult. Such registration should he with an im-
partial agency. It should not, of course, "be mandatory; and should
be merely a condition of protection against -piracy. The filing
bureau should be required to give all the factual assistance required
by IdA. to mske determinations in particular cases.
Relation to existing laws
Where design protection is offered by existing statutes, 1672
the period permitted therein should be accepted as the appropriate
maximum. No code may afford protection for a longer period. ITor
should the code provision be in contravention of any such statute
in any respect; it should express its intention to be consistent
therewith.
Guaranty of -product
The guaranty by a reputable manuf act^urer of the quality of his 1680
product is at once one of the solidest of sales devices and a grate-
ful protection to the cons-umer, IIRA sho-uld be very chary of ac-
cepting provisions which unduly limit the right to give guaranties.
Limitation to defects of materiel or Trcrkmanship
The above is not to say, of course, that ^guaranties may 1681
not be abused. They are sometimes; and where such abuse can be
shown, a proper limitation may be imposed. But no manufacturer
should be prohibited from guaranteeing his material and workmanship.
Limitation of -period of guaranty
The length of the period of guaranty can never be pre- 1682
sumptive of extravagance of guaranty. Unreasonable length of
guaranties do afford a means of giving cloaked concessions, but
there must be definite evidence that this is so in any particular
case. The fact that one manufacturer gives a longer gaaranty than
his competitors is not prima facie unreasonable; he m.ay be able
to demonstrate that his guaranty is entirely appropriate to the
quality of his -product.
Adjustments by dealers
Manufacturers may not be required to -prohibit their 1683
dealers from making adjustments -pursuant to their guaranties. With
full appreciation of the piroblem -posed by the retailer who is
irresponsible in the matter of replacements, nevertheless that
problem does not justify placing an unnatural bar between the
customer and the retailer with whom he deals.
S-gndr-/- questions
Classification of customers
No code may -properly classify customers if the effect is 1691
9307
-47-
to fix nrices, discounts, or differentipls, or to establich resale 1691
price maintenrnce, or eliminate, suDDress, or discriminate against
any customer or class of customers. ?or -oro-ner r)urposes there can
te no objection to a classification of custonerr., "but no one may "by
coercion atterrot to cause the inclusion of a cuctoner in, or his
exclusion from, any class. Each member of industrj?- must "be permitted
to clsscif''^ his ovTi customers in pccordence '-'ith his o^-m judfi^nent
(!!odel, 626, S?7) .
Restrictions as to customers
The restriction of sales "b"'' manufacturers to dea,lers of 1692
certain qur.lifi cations, such as those T^ho maintain a T)l9ce of busi-
ness and warehouse, rould be a species of class legislation ^hich
could not be c^p-oroved. It is not the function of codes to limit the
judgment of members of industry es to the ^)ersons to rrhom they should
sell.
Re tur:i of goods for credit
It must be admitted that in many industries, particularly 1693
in times of stress, laxness in t'le r-cceptance of the return of goods
for credit tends to becom.e en obstruction to commerce, harassing to
the manufact"arer r:id ultimately cost];^^ to the consumer. TJliere such
conditions pp-oea-r, a reasonable limitation unon such return may be
considered. An'* such provision must be entirel*' fair to purchasers.
Returns ma;'' be limited to causes due to t'\e fa.ult of the seller, a.s
defects or errors; or, if returns a.re allowed for causes not the
fault of the seller, the purchaser ma3'" be required to pay the return
freight. The period allowed for examination of goods by the
purchaser nu.st be reasonable, pnd. there should be no limitation on
return on excoi'jit of defects not easily discoverable.
Conforna:ice of bid to sti-pulated -price
To require tha„t bids adliere to the stipulated, appropria- 1694
tion for a project exceeds all "oroDer limitation on bidding practices.
It TTOuld be unjust to -orevent a bidder availing himself of his shill
or lower costs to place a bid at less than the stipulated appropria-
tion.
9307
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PRICES
General price ^jolicy-Introd-uction
The competitive syste:n
In the area of free enterprise, price is supposed to "be 1701
determined in an open market, where it is assumed to emerge from the
operation of a.ll the competitive forces rhich are included in the
shortha^id v/ords, sup-oly and demand. This comnetitive system is often
sool'en of as an automatic self-regulating mechanism, but, as a matter
of fact, it is not no\7 and never uas, C-overnrnent intervenes to
secure the iiaixitenance or restoration of competitive conditions \Yhere,
for exe.Tiple, an understanding among interested "business men may pre-
vent the establishment of a competitive price. Government also under-
takes to regulate the plane of competition in the field of wages and
working conditions. It regulates that plane further in the field of
trade practices.
Purpose of price policy
A price policy should, of necessity, be stated in general 1702
terms. Its end is to cause lorice to perform its essential functions;
to insure that it be a com^oetitive price in an open market, free from
the influences of ignorajice, malice, deception, or collusion.
Factors to be considered
The establishment of a plane of competition involves a con- 1703
sideration of all the arrangements, usages, and customs under which
prices are made. Such mechanisms as a free market, open price filing,
quantity discounts, cost accountancy, and the like are neither good
nor bad in themselves; the merit or demerit of each cones from the
use to which it is actually put. Nor can any device or procedure
be judged alone, for it al^'ays ap'oears in combination with other de-
vices#
Differences in indListries
Industries are far from being enough alike to permit iden- 1704
tical treatment. They differ in structure, organization, and usages.
They are cr.rrently at very different stages of development. They are
susceptible to diffent types of supervision.
Objectives and means
It follo'.TE that a statement of x)olicy can present no more 1705
than an a;op roach .of this problem. The objectives, of course, are
definite. The goal sought is the establishment of conditions under
which, in a free and open market, competition may determine a fair
price. The means must be flexible, requiring the use of a miscellany
of devices and "procedures.
9307
-49-
Oipen price filiriis:
Open price filing is a mere device. Its Dotentialities for
"benefit or mischief depend upon the purpose to which it is put and
the methods which attend its use. The standard "by which it should
"be judged is price making similar to that afforded by an open and
competitive market, such as an organized commodity exchange.
Ob.jectives of -price filing
1710
The ideal of an open and competitive market can seldom "be
fully attained. It is ho-ped to approximate its objectives by open
price filing under appropriate circumstances. It is possible for
the open file to allow buyers and sellers to accommodate their ac-
tivities to comiDetitive conditions, to fix limits to the spread of
quotations at any given time, and to tend to make -orice perform its
industrial function. Open price filing should, so far as -oossible,
be made to furnish a public record of nrice movements, provide a
check on discrimination among customers, give the small enterpriser
information about the activities of his larger competitors, reduce
the amount of deceDtion among buyers and sellers, give the parties
concerned a fuller knowledge of conditions affecting the market, and
promote ajid safeguard the integrity of the TDrocess of competitive
price making.
1711
Essential characteristics
The following are the essential characteristics of an
open price provision (Model, 711-714):
1712
The filing agency
An impartial and confidential body (11-1198) should be
the administrative agency in order that price lists may be dis-
tributed to members of the industry and to their customers without
partiality and without efforts to influence the quotations. If
the body is a private agency, its activities must be subject tn
the immediate oversight of the Government.
1712.1
Publicity
The prices must be genuinely available to all customers and 1712,2
members of the industry, together with the name of the seller when-
ever it is necessary to an identification of the quality of the
product.
definite -prices
The filed prices must be those at which sales are actually
to take place, rather than merely minima above which members of an
industry may secretly vary their prices as they choose, or maxima
from which discounts are to be allowed.
1712.3
9307
-50-
Identif ic-^.tion of orod'uct
"Ehe various qualities, styles, and sizes of the product 1712,4
must "be cs.pa'ble of accurate ideutif ication,
CoiiTolete filing
Since any one of the terns of sale may "be emplo3'ed to vai^ 1712,5
the actual sales price, all such terms — quality, qucntit^'', style,
size, discounts, point of shipTient, classes of custodiers, manner of
■■)a>'^;ient, and so forth — nust "be filed in precise and definite tjrms»
The field for use of o^oen pricing
Unfavorable f ields
Open price systems should not be indiscriminately ^ \ 1721
applied to the entire range of Aiaerican industry. This device may
require much effort and give little usable information ^here —
(1) Comj.iodities differ so -^.'idely in q-oality, character, and
accompanying service that prices are likely to vary ^vith
ea,ch sale,
(2) Uhere the number of concerns and products is very large.
(3) TThere, through custom or convenience, prices remain
stable and market changes lie -mostly in the character
of the goods sold,
(4) "Where comnodities are highly perishable and their supply
fluctuates rapidly,
(5) where the nature of the product malies identification of
quality, style, or size difficult,
Favorable fields
On the other hand, the feasibility of an open price sys- 1722
tern increa,ses in so far as price competition is active, the p^od--
ucts of the industry can be clearly identified, and price changes
are frequent without being incessant.
Factors to be considered
Consideration should be given to the follov/ing factors: 1723
(1) Frequency and extent of price change,
(2) Complexity of terras of sale,
(3) Ease of identifying the product.
(4) Number and geographical diffusion of members of the
industry.
9307
-51-
(5) Degree of price conpetition 1723
(6) Economic importance of the product.
(7; In some instances, rs tiiere the finished product of one
industry is the rav material of another, the conditions
in correlative industries,
ul'-ere O'oen ".rice gysteias shculi I'e avoided
In certain industries, open price systems -involve such 1724
prooa"bilities of serious atuse that, even though they are feasicle,
they si-culd "be avoided. These are industries in TKr.ich the need is
to preserve competition against attaclv, rptiier than to foster it»
Such is an industry in which the dominance of an enterprise or
group is inti-_ii dating to smaller independents, or one in Trhich the
chief ohstacle to collusion is the difficulty of devising machinery
for price -understandings. The field for open pricing is that in
:T::ich competition tends to te active, "but ill-infcmed and chaotic;
not that in irhich competition tends to evolve into monopolistic
restraint.
TTaitini: rrricd
A waiting period is likely to freeze a competitive process 173C
■;7hich should "be keut active. In an open market there is no counter^
:art of such a device. When prices are rising, r flood of orders
luring a waiting period mas'" unsettle a future market, Fnen p.ices
are too hi^, the incentive to reduce them may "be lessened "by
knowle'dge that competitors ma-y destroy most of the sales advantage
"before reductions can "become effective. Therefore, the general
presumption must "be against the use of the waiting period, and the
hurden of proof is upon the industry' which wishes to employ it.
Best case for rait in r r^ericd
Fro"ba"bly the "best case for a waiting period can "be made 1751
for industries in which sales are of large size and small num'cer,
members ?j?e many and widely scattered, and information ?."bout prices
cannot, for seme reason, "be quickly circulated.
Limit on frequency of -price change
In industries -^^ere prices immediately effective are 1732
manip-ulated for the purptose of allowing large discriminatory dis-
co-unts to privileged customers, it may he necessary to impose some
limit upon the frequency of price change. In such rare cases this
can "be done 'c-f requiring that a price, once effective, must remain
so for some reasona"ble minimum period, A waiting period ""tef ore
the price "becomes effective is not necessary in dealing with this
T)ro"blem,
93C7
-52-
Smidry price filin^g; provisions
When prices Tpecome effective
In the absence of a waiting period, prices become effec-
tive immediately upon receipt by the agency, and the code should
so state, InTo member filing a revised price may file a higher
price within 43 hours.
Price basis
1741
No open price plan may require members of industry to
file prices on any specific basis, The;^ must be free to file
f,o«b, factory or delivered prices, list or net prices, as they
elect.
1742
Adopting: another's price list
To avoid unnecessary expense or trouble for small enter- 1743
prises, members of industry may be permitted, if they desire, to
adopt the price list of another instead of filing a separate one,
L"ump-sum prices
Any general prohibition of lump-sum prices is an iinwar- 1744
ranted reg^alation of individual sales practice. To prevent evasion
of price filing provisions, however, members of an industry may be
required to quote or invoice separately any articles for \7hich
prices have not been required to be filed.
Preservation of records
The agency will maintain a permanent file of all price
terras and will not destroy any part of such records except upon
written consent of i^'BA,
1745
Price statistics as an alterna.tive
A price statistics s^'-stem is one v/hich provides for the open 1750
reporting of price summaries, price ranges, and sales volumes
based upon records of past transactions. Such a system involves
neither the same technical problems, nor, if the identities of
sellers are concealed in the summaries, as great danger of abuse
as necessarilj?- appear with current price filing. The contrivance
of this form requires a nice balance between the safeguards of
secrecy and the necessity of information. But there are many
industries which will be adequately served thereby and in which,
accordingly, open price filing is unnecessary.
Destructive price cutting
TJilfully destructive price cutting is an unfair method of compe- 1760
tition. It imperils small enterprise, tends toward monopoly, and
impairs code wages and proper working conditions. Because of the
9307
-53-
difficj-ltj of defining it, no prohibition in a code can "be selx"- 1760
executing, "but the facilities of NEA can "be empl0}^ed to determine
the existence of destnictive price c"attin;f?; in particular cases
(Model, 720-725).
Complaints
Any menber of the industry, or of any other industry, or 1761
the custodiers of either, nay, at slyij time, complain to the code
authority of the existence of destructive price cutting. The
code authority r^ill, within five days, afford an opportunity to
the person complained of to ansT7er such complaint and ^Till formu-
late a coxiclusion within fourteen days. If either party dissents
from such conclusion, all data vdll "be referred to NRA. for investi-
gation "by it.
Declaration of erne rgency
TiThenever . the IIRA., after investigation, shall find (l) 1762
that an emergency has arisen within an industr;'- adversely/ affect-
ing small enterprises or -./ages or labor conditions, or tending
toward monopoly or acute conditions v/hich tend to defeat the
purposes of the Act, and (2) that the determination of a minimum
price for a specified product within the industry is necessary
to mitigate the conditions constituting such emergency, and to
effect the purposes of the Act, the code e.uthority is authorized
to cause an impartial agency to investigate costs and to recommend
such minimum price to HRAo
Establishment of minimum price
If I'RA agrees to the price so recommended, it will es- 1783
tablish such minimum price for a sta.ted period. Thereafter, during
such period, no member of industry may sell the specified product
at a net realized price below such rainimura, NBA, either upon re-
viev/ 'by the code authority?" or by itself, may revise such action
at any time.
The loss leader
The loss leader is a device, not of the technology'' of merchan- 1770
dising, but of the business struggle for customers. The rivalry
betv;een retailers should be based upon practices which promote
economy in m.erchandising, not upon sheer financial strength or
predatory tacticso
Difficulty of solution
Yet it is not eo.sj to find a solution for the problem, A 1771
system of accounting cannot be made to reveal the cost of handling
specific articles; even if it could, retail merchandising cannot be
subjected to the i^rinciple that each article must bear its own
cost.
9307
-54-
Tentative provision
The limits of the prohihition of loss leaders must "be
determined in a tray that will allow the utmost leeway to the indi-
vidual enterpriser in allocating the cost of doing "business among
the dozens or hundreds of articles which he offers for sale. The
present provision in many codes which forbids the sale of an article
at less than the invoice cost plus a small addition to cover a part
of the la'bor exriense incurred in the sale, is a compromise. Ex-
Toerience with this provision is not conclusive; it should continue
under o'bservation. Meanwhile, lacking a real answer to the problem,
it may be accepted tentatively. Its use should always be safe-
guarded by a provision that the clause may be deleted if found not
to be ^7orking in the Dublic interest, without such deletion serving
to invalidate the rest of the code.
1772
Cost systems
Accounting is invaluable for presenting the state of a business
and supplying information essential to its successful o-oeration.
But it is a device, not a science. Its results are at best approxi-
mations. It requires accuracy and fidelity, but it cannot exclude
the arbitrary.
1780
Cost-f ormula^for--crice
A costing system and a cost-formular-for-price are quite
different things. A costing system is a guide to the individual
enterprise in meeting its business comiDetition. A cost-formula-
for—price attempts to determine the cash-terms in the bargain of
sale.
1781
As controlling prices
The great majority of cost provisions employed to delimit
prices are unwise and unenforceable. In most cases the difficulty
is not basically a problem of cost or even of price, but of indus-
trial maladjustment. It rests unon a disiDarity between the capacity
of the industry to produce and of the market to absorb.
1782
Relationship bet\7een cost and prices
Analysis shows little justification for attempting to
secure a sinrole and continuing relation between the cost and prices,
A pegging of prices on the basis of cost can neither establish
economic justice nor restore industrial prosperity. For these
reasons (set forth in detail in Adm. Policy, New Series No. Ill)
the use of a cost formula to limit price may be allowed only in the
case of loss leaders, natural resource industries, and emergencies.
In other instances the necessity for its use and its practicality
must be established beyond reasonable doubt.
1783
Mandatory cost systems
A mandatory cost system for other than price-making pur-
poses may be ap-oroved if its necessity and practicability are
9307
1784
-55-
established iDeyond reasonable doubt. Generally, it can be approved 1784
only for an industry in which a general uniformity of conditions can
"be approximated. In instances where a whole industry desires a uni-
form system, where processes and Droducts are identical, and where
there are no serious obstacles to its operation, mandatory costing
will "be given an opDortunity to make out its case. In industries
such as coal and textiles, where unusual privileges have "been given
or unusual forms of control established, cost records may "be a
necessary adjunct in order to furnish information for public control.
In any event it must be recognized that elaborate systems of costing
are expensive; they are a burden which small enterprises cannot afford.
Voluntary cost systems
One of the dominant objectives of WA is the creation of
conditions of fair competition. The lack of accurate knowledge by
business men of the elements on which their costs and prices depend
is a factor which works against the orderly operation of the indus-
trial system. The formation, improvement, and extension of sound
systems of costing need encouragement. Voluntary systems are a
matter for control of the parties but NRA is willing to cooperate
in their establishment whenever called upon (Model, 731).
1785
Estimating bureaus
Ho provision which binds members of the industry to use 1786
in any part the cost figures prepared by an estimating bureau can
fail to have the effect of limiting prices. It is therefore sub-
ject to all the observations herein made respecting price limita^
tion (II-1701). There can, of course, be no substantial objection
to an estimating bureau which members of industry may use at their
election, though this is orien to the serious question whether the
industry is financially able to support it. Now should the ex-
pense be assumed in the absence of substantial unanimity in the
industry.
Sundry matters
Resale lorice maintenance
No form of price control by the producer or vendor over 1791
products of which he no longer holds title is acceptable.
Basing -point systems
No mandatory basing -point or zoning system for prices
may be permitted. But there may be no objection to such a system
which permits manufacturers to sell on an f.o.b. plant basis if
they elect, provided there is a satisfactory showing that the
system cannot tend toward monoTDOljr. Thus, a system in the lime
industry, whereby producers were to sell at f.o.b. plant prices
in their own zone and in any other zone for which they elect to
file prices, was found acceptable.
1792
9307
-56-
price differentials
Any proposal to limit or control lorice differentials, 1793
whether "between different classes of customers or between different
styles or sizes of oroduct, or the nrices of extras, is subject to
all the observations which have "been made respecting lorice limi-
tation.
Price of repair work
Any proposal to limit the "orice at which a member of 1794
industry may furnish repair work on products which he has sold is
subject to the general observations on urices. It may also further
be objected that such a provision would be difficult of enforcement.
Guaranties against -price decline
Beyond requiring the filing of practices pursuant to a 1795
price filing system, individual judgment should not ordinarily be
shackled by prohibiting guaranties against price decline. Ex-
ception may be warranted, however, in an industry where the prac-
tice of refraining from guaranteeing c'xgainst price decline is well
established, vrhere it has aroused little or no opposition among
customers, and where the business is largely spot.
9307
:}(:
-57-
COnE ADHINISTRi!.TION
Fe^r' of the provisions of codes are self-executing. In one or 18C0
"both of two aspects nearly all provisions require continuing ad-
ministrc^tion. One of these aspects is concerned v/ith securing
compliojice vith codes "hy the individual members of industry. The
other aspect is concerned v;ith the general effect of code provi-
sions,
Hes'ponsi"bility for administration
Responsihility for the administration of codes belongs 1801
primarily to KRA and seconda.ril;!'- to the enforcement agencies of
the Government, That responsibility cannot be relinquished to
industry or industrial agencies,
C-eneral effect of codes
The general effect of codes must be a subject of cc-' • 1802
tinuing interest. Obviously not all of the problems of an in, j.s—
try c^n be solved in the first formulation of its code. Equally
obviously, not all the proposed solutions will be found desir-
able. The field is too nei: and too vast to expect immediate
perfection. All that can be reasonably/ asked is a continuing
improvement. To encourage this is the responsibility of the Code
Administration division. The policies governing this responsibi-
lity are contained in this section and in the section dealing
with Amencanents; the methods of carrying out the responsibility
are elsewhere in this I.ianual,
Oonplience
Compliance is the responsibility of the Compliance and 1803
Litigation divisions of NSA and the enforcement agencies of the
Government, The policies governing this responsibility are set
forth in ajiother section of this I.ianual,
Industry's share in ac'jnini strati on
Though full responsibility for the administration of codes 1804
remains v;ith the Government, it is wholly proper and desirr'.''ole
for industry to encourage and assist in compliance \7ith the
codes, to observe their general operation and effect, and to
continue to plsji their improvement. This section of tte I.ianual
is devoted to the m.anner of this participation in administration.
Organization of industry/
Since generally it is impracticable for an industry to act 1810
as a whole, it is customary- and desirable for it to delegate to
some agency the power to act for it. Such an agency may be
termed a code authority, or a code committee, or some name apt
to the particular industry: the name is not important. The
use of the word "a.uthority" is not to be construed as vesting
9307
-58-
the agency uith any of the government's authority. Such authority 1810
as it has is limited to the delegs.tion "by the industry of the right
to represent the industry and to e.ct on its "behalf. Since the term
"code authority" has "been generally used to denominate the agency
which represents the industry, that term \7ill he used here.
Size of code authority
The code authority should he large enough to permit 1811
representation of all classes of raemhers of Industry (11-1812,2) —
generally not less than 5— hut not so large as to he unv/ieldy,
Qua2ifications of code authority
If po^7er is to he delegated to the code authority to 1812
act on hehalf of the industry (and otherwise there is no reason
for its existence), it must he truly representative of the indus-
try. It is the duty of NBA to insure that the code makes proper
provision therefor,
I.Iemhers of industry
G-eneralljr speaking, the memhers of the code authority 1812,1
should he memhers cf the industry. It is not often that the in-
terests of representation are hetter served hy persons from with-
out the ranks of those represented.
Representation of all classes
IThere the industry comprises different classes of 1812,2
memhers, provisions must he made for proportionate representa-
tion of each. Thus, where the memhers of industry vary greatly
in the si^e of their husiness, hoth the large and the small
memhers must he assured of representation. Thus also, where
some memhers of industry employ a means of distrihution dif-
ferent from others, there must he representation of hoth classes,
\lheTe a different character of xoroduct is made "hy different
classes, hoth must he represented. The proportion of representa-
tion may he hased on the same considers.tions which determine
voting power (II-1825), The determination of such representa-
tion requires the application of judgment to all the facts in
the particular case.
Trade association as a code authority
It is entirely proper, and in some cases desirahle, to 1812,3
constitute a trade association (or its governing hody) as the
code authority, provided that such association fulfills the re-
quirements of the Act (11-1022, 1023), But, since it must he
representative, it may act alone only where the industry is well-
knit sjid generally participates in the trade association. Where
there is a suhstantial minority of the industry v/hich does not
participa,te in the association, provision must he made for ad-
ditional memhers on the code authority to represent such minority.
9307
-59-
Jxiay troAe o.ssociation participating either directljr or indirectly
in coc.e c.uthoritj'- activities must fulfill the requirements of the
Act (Uodel, 603),
1812.3
I.Iod.ification of code authority
In order to insure that the code authority remain truly
representative at all times, co.des \/ill provide that if NEA shall
find, after hearing, that any code authority is not truly repre-
sentative, or otherwise fails to comply v/ith the Act, appropriate
modification may "be required (Model, 604),
Selection of Code authority
The code vrill provide a means wherehy the industry may se-
lect the raerahers of the code authority. This method must he
sufficiently specific to protect the rights of individual mem-
"bers of industry, hut should not he so detailed as to stultify
the industry?- uhen unforeseen circ^^Jnstances arise,, Considerahle
latitude in the method may he permitted if coupled i.Tith the pro-
vision that the method shall he satisfactory to ITEA,
Time of selection
1813
1820
Suhsequent to the approval of the method of election
and prior to the date of election, a sufficient interval should
elppse so that all non— merahers of the association or non— parti-
cipants in sponsoring the code may have a reasonable time to he
informed of and comply with the prescrihed method of election.
Selection hy NBA
IThile highly desirahle that members of the code au-
thority he chosen hy the industry/-, there may he cases r/here
such choice is impracticable, '.There this is properly substan-
tiated, or Vj'here certain cla.sses of menbers have failed to
elect their representatives nithin a specified or reasonable
time, such selection may be by IIEA, ilevertheless, endee.vor
should be made to secure selection by the industry as soon as
conditions peirnit.
1821
1822
Temi of members
The code should provide for the term of office of
members of the code authority and the date upon v/hich in
subsecoient years the election is to be made,
ITotice to industry
ilhatever the provision of the code, it is obvious
that ell members of industry must be given proper notice of
the time and method of the election, '*7hat is proper notice
must depend, of course, on the situation in the industry; the
number of members of the industry, their geographical distribu-
tion, and the completeness of the information available
9307
1823
1824
-60-
respecting their identitv and domicile. Opportimity must "be given 1824
to all to vote and to perform any conditions precedent thereto.
The association or committee applying for the code must use reason's^
ahle diligence to locate all memhers. If payment of assessment is
a condition precedent, all members must he given a reasonable
notice and opportunity to pay.
Voting
The "basis of voting is best chosen in the light of the 1825
situr.tion in the particular industry, with a single guiding
qualification: it must be fair to all. Where the volumes of
business of the members of an industry are more or less of equal
amount, it is proper to allon each member a single vote. This
would hardly be fair, however, in an industry which includes
some large and many small members. In such case, voting would be
fair neither on a numerical basis nor a volume basis alone; some
combination of these factors is desirable. Where it would be
proper to apportion votes in part on the basis of volume, the
number of employees may be used alternatively. Voting power
usually has no relationship to the amount of assessment, ^JThere
the disparity between members of industry is marked, it is best
cared for by separate representation of different classes,
Qjigalification for voting
In order to be eligible for participation in the selec- 1825,1
tion of the code authority, members of industry may be required
to be in compliance v;ith the code, Thej'- must be contributing
their proper share of the e:cpenses of administration (Executive
Order 5678), Since assent to the code is unnecessary in determin-
ing a member^ s rights and obligations, siich assent may not be made
a condition precedent to the right to vote.
Vacancies
A vacancy in the membership of the code authority should 1826
be filled in such manner as to maintain its representative charac-
ter as provided in the code, and the manner of filling it should
be specified in the code.
Recognition by JUA
It is customar^^ for ITEA to "recognize" the code author- 1827
ity after its recognition. In this action, ERA exercises no dis-
cretion. It simply verifies the fact of election in accordance
\7ith the provisions of the code, Hecognition constitutes a
notice to the industry that NHA is satisfied of the propriety of
the selection and is prepared to deal with the code authority as
the representative of the industry.
9307
-61-
No n- Indus try nerJpers
Adrainistration members
To represent the public interest, provision will be 1831
made for not exceeding three members on each code authority to be
appointed by IIRA, Such Administration members have no vote in
code authority'' proceedings (Mode]., 6C2) ,
Em-ployee renpresentation
!Em;oloyees are entitled to equal representation on all 1832
bodies which deaJ. definitely vdth problems affecting labor and
industry jointly. Code authorities are not such bodies. They
speak only on behalf of industry and have no power to dispose of
labor problems excerpt as they may negotiate with employees. Em-
ployees are no more entitled to representation on code authorities
than is industr:?" entitled to re-oresentation on agencies which
represent labor. Some industries have found it very helpful,
nevertheless, to invite employees to participate in code authority
activities, ^here they desire to do so, there can be no objection.
They have the right, of course, to define the terms of such
participation.
Organization of code authority
The organization of the code authority itself is largely a 1840
matter of internal detail which ma;/ safely be left to it rather
than provided for in the code. The code should authorize the
code authority, subject to the approval of NEA, to adopt by-laws
defining such particulars (Model, 612) ,
ScoDe of by-la\7S
The b2"— laws may properly -orovide for — _ 1841
(1) Establishment of code authority headquarters,
(2) Procedural and ministerial details for election
of members in conformitjr with the substantive
provisions of the code,
(3) Meetings and notice thereof,
(4) Officers and employees,
(5) (forums,
(6; Duties, powers, and res"Donsibilities of code
sxithority officers,
(7) Keeping of minutes and records of code authority,
(s) Method of amending by-laws,
9307
-62-
Limitations on l)y-la^7s
Provisions directed at re^ila.tion of the conduct or 1842
procedure of Lierfoers of inc^ustry, individually or collectively,
are proper matter for code provision, and "beyond the scope of "by-
laws.
Inconooration
The code may lorovide for incorporation of the code 1843
authority. The terns of such incorporation must "be examined and
ap"oroved "by KRA, ho^'ever, in order to insure that it has no
effect to extend or alter the -orovisions of the code,
Functions of code authority
In general, the duties of the code authority must "be those, , 1850
and no more, which are expressed in the code. But it is usually
provided that the code authority shall have the general duties of ,
insuring the execution of the code provisions and compliance there-
with (Model, 611) and of observing the operation of the code and
making recomnendations for its imr;orovement (Model, 623), and, "by
the very fact of its creation, the code authority may "be assumed
to have "been vested with those general dLities. As to more specific
duties, the follorjing paragraphs indicate those which, in the
discretion of the industry, may properly 'be assigned to it.
Power to "bind the industry
The povrer of the code authority to "bind the industry 1851
depends upon the delegation made to it in the code. "(Jnless there
is a,n express delegation of po^er, no right to "bind the industry
can "be inferred (Model, 623).
Comr)liance
The code authority ma,y assist in securing co^^roliance 1852
"by constituting conpla.ints committees which Y/ill undertake to ex-
plain to memhers of industry their oljligations under the code and
to secure adjustment of complaints (Model, 628). Details of pro-
ced.ure are stated in another "oortion of this Manual.
Information and ro-ports
The cod.e authority may "be charged to oh tain from mem"bers 1853
of the industrjT- siich information and reioorts as in the judgment of
NEA are needed for the administration of the code (Model, 613).
Inter- industry relationshi-ps
The code authority should make recoiTimendations to ERA 1854
for the coordination of its code with other codes (Model, 616).
It should also appoint committees to meet with committees from
other industries to consider inter- industry problems (Model, 624).
9307
-63-
S-'3^cir,l sii'b,1ects of inquiry
The code authority may be given the cT^ity of studyin{: 1855
arxj'' particulr.r siilDJect yhich is of interest to the industr'/, or
u-oon which the decision as to sone particular code provision may
turn.
Delegation of authority 'hy TIEA.
Tlie exercise of authority under the Act is vested in 1856
the President and such Government agencies as he may designate or
create. An industry' or its code authority is not a Government
agency. Authorit" to e7:ercise indeioendent discretion cannot he
delegated to it. An industr^,'- or its code authorit^r may he crapo^'er-
ed, however, to carry out certain res-oonsihilities created h"'" the
code, hut the mamier of such carrying out must he su.hject to prior
ap;oroval h;^ InIHA, Fnere the duty is rell defined hy the code, and
its execution remits a negligible latitude of discretion, such
execution may he m.ade subject sirroly to disao'oroval hy ICIA,
EevieTT "07 IE{A
ITHA should have pcrer to review any action of the code 1857
authority, and, if it appear unfair or ■'jjijust or contrary to the
public interest, to sus-)end it oending investigation and hearing
(Model, 606).
A-Q-oeal to I!PA
Whether expressed in the code or not, any person affected 1858
b^'- any action of a. code authorit3' has the right to appeal to I'llA
for redress.
Liability of nenbers of code authority
Me:-.ioers of a code authority should not be held to be 1859
partners, nor should one member be lia.ole for the act of another.
No member exercisin'^ due diligence in his duties should be liable
for any act or o;.iission exceot his O'-'n rilful malfeasance or
nonfeasance (l.Iodel, 605),
Agencies of the code authority
The code a.uthorit*;- may emolo^'" such a-gencies as are r)roT)er 1860
and reasonably reouired for the -oerforna-nce of functions defined
in the code.
Trade associr.tions
Code authorities may use trade associations or other 1861
like organiza.tions for the performance of their duties, but this
docs not relieve then of their res-oonsibility (Model, 615),
9307
-64-
Impartial or confidential agencies
Ti/liere industry/ mem'bers are required to file reports of 1862
such nature that disclosure would he conmetitivcl^ injurious, an
impartial or confidential agenci^- ( 11-1198) must he designo.ted or
estahlished to receive such reports.
Suh-autho r i t i e s
Fnere ad-ministration of the code will he facilitated 1863
therehy, there may he provision for suh-autho ri ties, either repre-
senting particular classes vdthin the industry or geographical
areas. Exce-ot that they are responsible to the code authority,
all that is here said of code authorities is applicable to sub-
authorities.
Finances
Members of the industry may be rec[uired to contribute to the 1870
expense of administering the code uoon the conditions enumerated
below (Executive Order 6678; Model, 617, 62l) .
Budget
Each code authority must submit to IIRA an itemized budget 1871
of the expenditures pro-oosed to be made. Such expenditures must
be shown to be reasonable having in view the purposes of the code
and the size of the industry. Expenditures are limited to th-
amounts of the biidget as approved by ITRA (Model, 619). The pi'oper
scope of budgets is discussed in detail in another section of this
Manual .
Assessments
The amount of the f-ujids required, as determined by the 1872
budget, must be apportioned among the nembers of the industry on
some basis which vdll be fair to all, and as ajo-oroved by IHlA.
(Model, 620).
Insignia
The right to use official insignia belongs to every member 1880
of industry who is comolying ■■-^ith the codes to vrhich he is subject,
and cannot be denied because of failure to assent. Members must
contribute their proper share of the expenses of code a.dministration
in order to be entitled to make use of insignia (Executive Order
6678), No one ma^y display or use insignia contrary to rules and
regulations prescribed by ITRA. (Executive Order 6337), The use of
insignia, under any code maybe d.enied for failure to comply with
one code.
Labels
Under proper supervision of NEA,, industries to which it 1881
is appropriate may require their members to use a label upon their
9307
-65-
prodn.cts evidcncir.;T the fact th/^.t suc'i oroc'-'icts -'ere nr.nufactured 1881
in conforTiance to code -orovisions. ^aere la^bels are used as a
raediiim for the collection of funds to defray code exoenses, they
are subject to the requirerients res-oectinc* "budgets (ll-137l),
Withdray/fJ- of insignia
The ri^ht to use insignia (including labels) Tna.y "be 1882
TTithdrawn onl^' b^'" KRA,
Sundry matters
Statictical information
Ever-^ code is a.-o-oroved uoon condition that loersons 1891
subject thereto furnish such sta.tistica] informa^tion to Federal
and State ?.ger.cies as ITRA dee:is necessary for the purposes of the
Act (Executive Order 6479). A similar provision is to be includ-
ed in each code (l.lodel, 613).
Add i t i 0 :i rl -q cnal ties
The Act orescribes certain -^Denalties for the violation 1892
of code provisions. Had other penalties been desira.ble, ConfTess
'70uld doubtless have -orovided them. It is .?;ene rally iiTo roper,
therefore, to atteint in a code to attach additional penalties to
a violation. Of course, this ha.s no reference to the v^ithholding
of privileges during a period of continuin,^ violation.
Li qui da tec'' damaj^e a /^reerients
So:ie industries desire to esta.blish contractual relation- 1893
ships under vrhich each contracting member is oblir^^ed to loay a stated
sum a.s liquidated da.ma^es to the industr;'" for a. violation of the
code. Such a contract does not de-oend upon the code for its validity,
but there can be no objection if the code authorizes it, provided
the form is approved by ITHA (Model, 751 ). Codes may do so on the
followinfr conditions!
Assent to be voluntary
Assent to the contract will be se-oarable from assent to 1893.1
the balance of the code and failure to assent mfust not deprive a
member of the industry of any -orivilege extended under the code.
Detcr'iina.tion must be imrjartial
Jurisdiction for determining the existence of a violation 1893,2
giving rise to the contractua.l liability for liquidated damages
should be given (l) to ITRL or (.?) to some ir-rpartial agency either
nominated o" the code authorit^'' or designated b^'" assent of the
-parties T/ith the a-o-oroval of ITRA..
9307
-66-
Ano'LiJit of damg.ges
The amount of liquidated damages should "be correlated 1893.3
reasonably to the protalDle injury.
Dis'oosition o-f damag;es ' .
Dciis^i^es paid should he applied as follovrs: 1893.4*'
Pirst, if the violation from \7hich they arise was of a lahor pro-
vision involving under-payments to employees, all damages must he
distributed equitahly among all employees directly affected hy
such violation. Second, if the violation va.s of a lahor provision
not involving unde repayment to em-oloyees, or other than a lahor
provision, such 6.amages must he used for the expenses of code_
administration, and the balance d.istrihuted equitably and -oeriodi-
cally among members of the industry assenting to the contracts
Rights of others ' .
Causes of action in favor of individual members of 1893.5
the industry, emplo^'-ees, or others should not be affected by any
provision of the contract.
Records and re-oorts
Memhers of the industry may bind themselves to heep 1894
accurate records of tra.nsactions rhenever required t^ p^ny pro-
vision of the code, and to furnish reports thereof. It mo-y further
be provided that, in case of doubt as to the accuracy of ejiy such
report, the records nay be examined o?/ an imoartial agency (II-1198).
The results of such examinations are to be kept confidential,
except as may be necessary for the -oro-oer administration or enforce-
ment of the code (Model, 614).
9307
1910
-57-
M.ISCELLiUIEOUS 1'1ATT:^RS
« .1 ■ , .. —^
Cooperative or,g:cJiigationn
ITo code cr.n oe const mied to ;orevent sales to, or through,
a "bona fide coo-ierative orfcanization, nor to ;orevent sn.ch a co-
OTDerative or^i'anizs.tion fron receivin;^, or distributing to its
menbers as ;o?trono.ge dividends, such discounts, coinnissions,
rebates, or dividends as are allo^-^ed to other ?Dur chasers in '-rhole-
sale quantities, either ordinarily or pursuant to any code
(Ex. Orders 6355 and 6606-A) .
Definition oi* coo'oerative organization
In order to qualify for the above provision a co- 1911
operative organizo>tion nust coriply ^-^ith the follo^-^ing conditions!
(a) Be duly organized under the la^s of any state,
territory, or the District of Colunbia,
(b) Allov each -ne'iber o^-ming a fully paid share
one vote and only one, exceot as othervrise
provided by the la;? under ^7hich it is incorporat-
ed, provided that a central or regional associa.-
tion comprised of cooperative associations nay
base voting vcoon the volume of business done nith
each member association, or on the nuiaber of
members in the member association.
(c) Operate on a, cooDerative basis for the mutual
benefit of members, distributing all income on
the basis of -oatronage at stated periods not
oftener than semi-annually, after providing
proper reserves and paying not more than 8/o on
stock or membership cajDita.l.
(d) Do at least half of its business in any fiscal
year for the account of members.
(e) Afford information to all members and stocldiolders
res-oecting com-oensation -os.id officers and emoloyees,
and pay no com-oensation except for services
actually'' rendered.
(f) Distribute patronage dividends equally to all
nenbers and. stocldiolders nho comr)ly vdth require-
ments in proportion to their purchases and sale
and mal^e no representation of any definite or
specified dividend. Dividends due a non-member
may be accwaulated for the iDur^^ose of purchase
of a sha.re of stock.
(g) Allon to organizers no more than 3^j of the
capital raised,
9307
-.68-
(h) lie subject to no control "b" any no n- cooperative 1911
organization or -oerson to v.rhom eivj profits or ex-
cessive coTToensation is paid, nor "be required to
"bry comnodities from any specified non-cooperative
concern.
(i) Conrpl^'' with codes to which it is su'bject.
Any of the foregoini.3 conditions which are in conflict with the law
under which siich associc'^.tion is organized are waived.
Prison labor
The President has invited each State to enter into a compact 1920
with him -orovicTing that the use of -orison labor in the manufacture
of products for comr.ierce shall be governed in respect of hours of
labor and machine operation, and child labor, by the provisions of
the code applics-ble to such Toroduct; and., further, that such goods
shall be sold at the fair current market nrice (Ex. Order, April 19,
1934). As to States which have adhered to this compact, there is
no occasion for codes to contain restrictions upon prison-made
goods. Except as to such States, in any industry where goods made
by prison la.bor a.re cho^-ni to have da.maging coraDetitive effects,
members may be forbidden to buy or sell such goods, or to do so at
less than the fa.ir market price of goods manufactured in private
commerce,
Simdry code provisions
Products sold in export
Exports t:i3?j be excepted from sxiY provision regarding 1951
prices or trad-o pra.ctices, though never from labor provisions
(Model, 8OI) . E:}^oort trade, if not specifically excepted, is in-
cluded and boiuid b^" code -provisions.
Forest conservation
One of the policies of the Act is the conservation of 1952
natural resources. The major code affected thereby, that for
Lumber and Timber Products, has made -orooer -o revision for rules of
forest practice and the operation of forest areas on a. sustained
3?-ield basis. It is essential to the effective operation of any
conservation progra.i that conservation measiires be apr)li cable to
all forest opera.tions irresioective of the ultima„te use of the
forest prodxicts. Accordingl'"-, each code covering forest OToerations
will include provision for conservation measures,
Arbitra.tion
The code may r^rovide for facil.ities for arbitration, 1953
and the code authoritj'- may be authorized with the ap-oroval of the
¥Rk to prescribe rules of lorocedure and rul'es to effect compliance
with awards and determinations (Model, 625),
9307
-69-
Furclirses fron non-conroliers
It is fair to Tirohibit mem"bcrs of industry from purchasing 1954
materials or sup"olies for Lise in their "business from persons A?ho fail
to comply with codes to which they are suhject. In order not to
place too onerous a "burden on the purchaser, however, he should "be
entitled to relv uipon the representa.tions of the seller, whether
express or inferred from the display of the Blue Eagle,
Price increases
In recognition of the fact that recovery is dependent 1955
in material degree upon an increase of -purcliasing power more rapid tha.n
than any increase of -orices, the policy of limiting "orice increases
to actual increases in cost should he expressed in the code
(Llodel, 831).
Sundry limitations
Assent to code
Since assent or non-a.ssent to a. code has no effect upon 1981
the rights or o"bligations of a nem"ber of industry thereunder, there
should "be no requirement of such assent.
Restrictions of imports
Section 3e of the Act provides a means for dealing with 1982
injury to any industry from the importation of competitive goods.
Code provisions, the puroose of which is directly or indirectly to
restrict or handicap importations, should therefore "be avoided.
This does not mean that a provision is to he condemned mereljr he-
cause it may affect imports, whether or not such is its puroose.
Where the provision has a proper primary;- purpose, and the effect
on imports is onl2'' secondary, the im-porters ^ould he given a
hearing and the question determined on the hala^nce of good.
Price ad.jiistments due to codes
Codes may not require a.djustment in purchase contract 1983
prices on account of any difference in costs caused h:' such codes.
The matter is one properly for priva.te contract.
9307
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AME^IDIENTS
SUBSTANTIITB GUIDES
The ter"i anenclraent as anTjlied to codes means any addition, 5100
deletion, or other change of any language thereof. For the sake
of -uniformity, the rords "modification," "sup^olement, " "re-
vision," "addition," or "adjustment" will not "be used to describe
amendments,
Suhstantive guides in general
The suhstantive gaides applicable to code-making (II-IOOO) 5110
are equally applicalDle to amendments, "both as to the content
thereof, and as to the precedent requirements 8vA conditions.
Applications "by industry
An industrry maj apply for an amendment, either hy virtue of 5120
the general provisions of the Act relative to aoplications for
codes, or Dursuant to express provision for a.mendment in its code.
Amendment of -provisions irhich are contrary to policy
To a code -orovision nhich diverges more than slightly 5121
from policy, and if such divergence is not justified hy the
peculiar conditions in the industry, amendments will not be ac-
cepted unless they "bring the provision into conformity with
policy.
Requirement for amendment
Provisions contrary to -policy
Every provision in an existing code which is contrary 5131
to policy presents the necessity for a.n administrative decision,
whether it is to he permitted to continue or whether other action
is to he taken. Such a provision may he permitted to continue
where the deviation from -policj'" is -unimportant, or where facts in
possession of ITRA justify such deviation.
Provisions fo-gnd unworkp.hle
Provisions which in practice are fo-und to he unworkable, 5132
or to fail to achieve their expected result, present the necessity
for an administrative decision •'whether to abandon or to modify.
Initiation of action
jnever administrative decision is reached to take 5133
action res-pecting an existing code provision, the industr;^ will
be offered a.n opportunity to negotiate vath !IRA or to be heard on
the subject. If no new facts thereby aroTDcar to impair the sound-
ness of the decision, the industry will be invited to propose
app rop r ia t e anendinen t ,
9307
-71-
ProTDOsals "by IJRk
Where code -orovisions are contrar^r to policy, or have proved 5140
unworkable or ineffective, or rrhere the code lacks some Torovision
required "by )Olicy, DroiDOsal for amendment mDy "be made "by ¥Rk,
Proposal v.'ill l)e so made only in resoect of matters of importance.
Stays
Where a code provision, or a portion thereof, aoTDears clearly 5150
to require deletion, and no amendment has "been a-oT)lied for, or the
need for action is too urgent to -oermit of the orderly process of
amendment, such provision, or -oortion thereof, may he sta,yed hy
NEA, If the need is only to miti;^ate the effect of the provision,
it may "be sta3^ed subject to such conditions as vrill correct the
situation.
9307
n
-72-
MODEL CODE PROVISIONS
■ARTICLE I
PURPOSES
To effect the policies of Title I of the National Industrial 100
Recovery Act, this Code is estaMished as a Code of Fair Conpeti-
tion for the Trade/lndiistry, and its provisions
shall "bo the standards of fair competition for such Trade/ Indus try
and he "binding upon every member thereof.
ARTICLE II
DEFINITIONS
1, The terra "Trade/ Industry" as used herein includes the 201
(state accurately rhat is included in the Trade/-
industry, whether manufactiiring, building;, transporting, repairing,
selling, and/or distributing at Taiolesale or retail, etc.) of
(vToducts, merchandise, or service, etc.) and such
related brsnches or subdivisions as may from ti^ie to time be in-
cluded under the provisions of this Code,
Suggestive: The industry includes manufacture for sale by 202
anyone under his own trade name of the products of the industry
as above defined, whether he is engaged exclusively in the manu-
facture of such oode products or is engaged also in some other
industry; and whether so engaged as an employer or on his own be-
half; and whether he actually makes code products in his own plant,
or has them made for him to his own specifications, formulae, or
patents; and whether he actually maJces in his own plant all types
and sizes of code loroducts which he markets, or has certain types
and/or sizes made for him to his ov/n specifications, or formulae,
or patents,
2, The term "member of the industry" is any legal person 203
engaged in the industry other than an employee.
3, The term "employee" as used herein does not include a 211
member of the industry but includes any and all persons in the
trade/ industry, however compensated, subject to the direction and
control of an employer.
4, The terra '^emr)loyer" p.s used herein includes any person 212
in the trade/ industry by whom as employee is com.pensated or em-
ployed.
5, The terra "apprentice" as used herein shall mean a person 213
of at least sixteen jrears of age who has entered into a written
contract i7ith an employer or an association of employers which pro-
vides for at least two thousand hours of reasonably continuous em-
ployment for such person and his participation in an approved program
of training as herein above provided.
9307
!i
6, The terra "Association" as used herein shall mean the 221
Association,
7, The terms "President," "Act" and "Board" as used herein 222
mean respectively the presio.ent of the United States, Title I of
the National Industrial Recovery Act, and the National Industrial
Recovery Board,
8, Population for the purposes of this Code shall "be de terrain- 223
ed oy reference to the latest Federal Census, (insert only v/hen
needed),
9, The term "homevrcrk" as used herein sha.ll mean industrial 231
work done in the home for wages pa.id "by an outside employer,
10, The terra "horae or living quarters" as used herein means 232
the private house, private apartment, or private room, whichever
is the most extensive, occupied as a horae "by the employee and/or
his family.
11* A learner as used in this Code is an employee who has 241
actually \7orked less than 240 hours (Consecutive or non-consecu-
tive) at the occupation in which he is engaged,
ARTICLE III
HOURS
Maximum hours
Section 1, No erarjloyee shall "be permitted to work in excess 301
of 40 hours in any one week or 3 hours in any 24- hour period (he-
ginning at midni>i:;ht) , exce;ot as herein otherwise provided,
(i.iaximura houi^s for s-oecial classes of employees, if any should
be inserted -onder the appropriate parat.-iTa^oh , together vith the hours
applicable, )
Hours for clerical and office em"oloyees
Section 2. No person em-jloyed in clerical or office work 302
shall "be permitted to work in excess of 40 hours in cany one week
or 8 hoiu-s in any 24-houi" period.
Exceptions s.s to hours
Section 3. The provisions of this Article shall not apply to 303
traveling salesmen, nor to employees engaged in emergency maintenance
or eiuergency repair work, nor to persons empl07/-ed in a managerial or
executive capacity who earn re.-gularly $35 per week or more; provided,
however, that em;-jloyees engaged in emergency maintenaiice and emergency
repair work shall "be paid at one and one-half times their normal hour-
ly rate for all hours -.^ork-ed in excess of 40 hom-s per week and 8
hours per day.
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Standard- i,7eek
Section 4. No employee shall "be permitted to work more than 304
6 consecutive days.
Emplo.Tonent "by several employers
Section 5. Each employer slriall require as a condition of con- 305
tinued employment, that ea,ch of his employees shall not nork for any
employer suhject to a code so tliat the total of his working time
exceeds the longest maximum hour provisions of any code governing his
work.
APJICLE IV
MGES
Minimum v/ages
Section 1. No employer shall pay any employee in any pay 401
period less tlian at the rate of 40 cents per hour, except as other-
wise herein provided.
Office and clerical employees
Section 2. No employer shall pay any clerical or office em~ 402
plojT'ee in any pay period less than at the rate of $15 per week.
Watchmen and guards
Section 3. No employer shall pay any 'vatchman or g-uard in any 403
pay period less than at the rate of $15 per week.
Office "boys and girls
Section 4. No employer shall pay any office "boy or girl less 404
than 80^t of the rate specified in section 2 of this Article, The
numoer of such emj)loyees shall not exceed 5^j of the total num"ber of
office employees, provided however, that every employer shall "be
allowed at least one office "boy or girl,
piecework compensation - Minimum wages
Section 5, The minimum rate of compensation shall apply irres- 405
pective of whether an employee is actually compensated on a time
rate, piece rate, hours, commission, or other "basis. In determin-
ing the application of this clause compensation shall "be computed
on the "basis of not more thain a 7-day period. Where overtime is
utilized such compensation shall be increased in the same ratio as
in overtime hourly rates.
Wages a"bove minimum
Section 6, No employer shall make any reduction in the full 406
time weekly earnings of any employee whose normal full time weekly
9307
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i^
hours are reduced by 25fo, or less, be lev those existing for the four 406
weeks ending June 17, 1933. When the normal fu].l time weekly hours
of an employee are reduced by more than said percentage, the full time
weekly uage of such employee shall not be reduced by more than one-
half of the percentage of hour reduction above said percentage. In no
event shs.ll hourly 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 ^lerein provided.
Within thirty days of the effective date hereof, (unless such
adjustment has been heretofore made) each emplo^rer shall adjust the
schedules of wages of his erai^loyees in such an equitable manner as
will conform to the provisions hereinabove set forth, and still pre-
serve wage differentials reasonably proportionate to those in effect
nrior to the effective date of this code.
gemale emr)loyees
Section 7. Female employees rierforming substantially the same 407
work as male employees shall receive the same rate of pay as male
employees, and, where they displace men at substantially the sane v;ork,
the]'- shall be paid the same rate of pay as the men they displace.
Handica'p-ped ipersons
Section 8. A person whose earning ca,pacity is limited because 408
of age, phj'-sical or mental handicap, or other infirmity, may be em-
ployed on light \7ork at a wage below the minimum established by this
Code, if the employer obtains from the State authority, designated
by the United States Department of Labor, a certificate authorizing
his emplojTTient 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.
Apprentices
Section 9. A person may be employed as an apprentice by any 409
member of the industry at a wage lower than the minimum wage, or for
any time in excess of the maximum hours of labor, established in
this Code, if such member shall have first obtained from an agency,
designated or established by the Secretary of Labor, a certificate
permitting such person to be emi:loyed in conformity with a training
program approved by such agency, until and unless such certificate
is revoked.
Learners
Section IC-A. Notwithstanding the provisions of Article IV, 410
section 1, learners, as hereinafter defined, to a number herein-
after permitted, may be employed at not less than 80^ of the
minimum vrage specified in Article IV, section 1, or, if compen-
sated on a piecework rate, at not less than the employer's standard
piece rate for the occupation in which the learner is engaged.
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Each emiDloj^er rae.y enoloy one learner for erch 20 per cent of 410
the total nw.iber of employees, and in any case eacii eraployer may
emplo]- e.t least one learner.
Section 10-3. Uoon the termination of a learner's employment, 411
the em-oloyer shall si.:gi and rive him a card "bearing the learner's
name, statin^- the occiroation in nhich he has "been em-oloyed as learn-
er for that employer, and the n-uiriber of hours so employed.
Section 10-C. T/hen a learner has completed PAO hoiirs actually 412
ivorked in an occupation, in the e^n^loy of one or more employers,
his employer shall sign and c^ive him a card "bearing the learner's
name, the occupation in ^7hich he has "been so employed, and stating
that he is no longer a learner in such occupation.
Section 10-D. No em-oloyer shall employ a learner at less than 413
the minimum \7age s-oecified in this section and no employer shall
employ a :;reater mjinber of learners than is authorized hy this
section at less than the minim"um wage prescribed by Article IV,
section 1,
Payment of wages
Section 11, Paj^ment of all wages due shall "be made in lawful 4-21
currency, or "by negotifi'ble check or draft therefor, payable on de-
mand at par, provided that reasonable faxilities are available for
cashing such check,
Ti'-ie of pai^^mient and deductions. Sxceot as otherwise provided, 422
wages and salaries shall become due and payable at least serai-
monthly, with not to exceed five calendar days holdover, Wages
and sals.ries shall be exempt from all deductions, charges, or fines,
except such as are voluntarilj'' consented to bj,'- the ennloyee or
authorized by law. Employers or tlieir agents shall not directly or
indirectly accer)t rebates on such wages or salaries.
Working time
Section 12, An employer shall not pay an employee less than 431
the regular rate of pay (including t'le overtiie rate when ap-olicable)
for any tine required to be srjent at the place of emoloyment or in
connection with the discharge of duties Of such employment, and such
tiiae shall be recognized as part of the permitted maximum hours,
ARTICLE V
GEITEHAI LASOR PROVISIONS
Child labor
Section 1, No person under sixteen years of age shall be em- 501
ployed in the industry. No person under eighteen years of age shall
be employed in operations or occupations which are hazardous in
natin-e or dangerous to health. The Code Authority shall submit to
the Board for approval within two months from the effective date of
the code a list of such operations or occuioations. In any State an
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em"olover shall be deemed to have complied \7ith this provision as to 501
age if he shall have on file a valid certificate or permit duly sign-
ed by the E/athority in such State empo^vered to issue employment or age
certificates or permits, sho^-'ing that the employee is of the required
age.
Provisions from the Act
Section 2. (a) Employees shall have the right to organize and 511
bargain collectively through representatives of their ovm. choosing, and
shall be free from the interference, restraint, or coercion of employ-
ers 01 labor, or their agents, in the designation of such representa-
tives or in self-organization or in other concerted activities for the
purpose of collective bargaining or other mutual aid or protection,
(b) No employee ejid no one seeking emplo^mient shall be required 512
as a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his ovm
choosing, and
(c) Employers shall comply -.vith the maximum hours of labor, 513
minimum rates of pay, and other conditions of era-olojniient approved
or prescribed ''oy the President,
Evasion through subterfuge
Section 3, No eraploysr shall re-classify employees or duties 521
of occupations performed or en.-^age in any subterfuge so as to de-
feat the purposes or provisions of the Act or of this Code,
Dismissal
Section 4, No employer shall dismiss, denote, or otherr^ise 522
discriminate against any em;oloyee for making a complaint or giving
evidence with respect to an alleged violation of the provisions of
any Code of Eair Competition,
Standards for safety and health
Section 5. Every employer shall make reasonable provision for 523
the safety and health of employees during the hours and at the place
of employment. Within six months of the effective date of the code,
standards of safety and health (permissive and/or mandatory) shall
be submitted by the Code Authority to the Board for approval.
State la.us
Section 6, No provision in this Code shall supersede any Federal, 524
State, or Municipal la-? or any labor agreement --hich establishes
more stringent requirements as to age of employees, wages, hours of
work, or g-eneral working conditions, then are established in this
Co de .
Posting
Section 7. Every employer shall post and keep posted the labor 525
provisions of this Code in accordance \;ith rules and regulations
9307
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-78-
prescribed "by the Board, 525
Home work
Section 8, No employer shall permit any homework exce;nt at 531
the sane rate of wages as is paid for the same type of work per-
formed in the factory or other regular places of business and
after a certificate tias "been obtained from the state authority
or other officer designated "by the U. S. Department of Labor,
such certificate to "be granted in accordance with instructions
issued "by the U. S. Department of Labor. Such certificate shall
be granted only if:
(a) The employee is physically incapacitated for work in a
factory or other regular nlace of business and is free from any
contagious disease; or
(b) The employee is unable to leave hone because his or
her services are absolutely essential for attendance on a "oerson
who is bedridden or an invalid sad both such per.^'Ons are free
from any contagious disease.
An emioloyer engaging such a person shall keep such certifi-
cate on file and shall file with the Code Authority for the trade
or industry or subdivision thereof concerned, the name and address
of such worker so certified,
ComDany towns and stores
Section 9, No employee other than maintenance or super- 541
visory men or those necessary to protect property sha.ll be re-
quired as a condition of continued employment to live in a
house rented from or designated by his employer or the employer's
agent,
No employee shall be required as a condition of continued
emplo"Tiient to trade at any store or subscribe to any services
designated by his employer or the employer's agent.
Notice of g-is charge
Section 10, No emr)loyee who has been regularly employed for 551
four weeks with any one establishment may be discharged or laid
off without a prior notice of one week.
Contracting
Section 11. No member of the industry, irrespective of the 552
method of compensation, shall contract out work vvhich if done by
him would be subject to this code, unless there is inserted in the
contrt'ict an express provision for the benefit of the era-
plo"-eef:. of the c: n tract nr ren; •.iring ftv.cl. contrive tor tu -• cic'.e
by the provision of this code, and a provision that such contractor
shall not avoid or evade the labor provisions of this code by further
contracting for such work,
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AETICUE VI
ORGAI-TIZATION, POWERS AND DUTIES
OF TPIS CODE AUTHORITY
Origjanization and constitution
Section 1. A Code Authority is herelDy established consisting 601
of persons to be selected in the follo'ving manner:
(Here shall oe stated the manner in uhich the raera-
bers 01 the Code Authority shall be selected and
the terns for xvhich they shall serve. Provision
should be made so that the Code Authority V7ill be
tru3.y representative of the various majorit'^.'',
minority, and other interests in the trade/ industry.
If, hov/ever, by reason of conditions peculiar to
the trade/ industry, selection by the trade/ industry
is impracticable, it may be provided that appoint-
ment shall be bv the Administrator.)
Section 2, In addition to me.abership as above provided, 602
there nay be members, without vote, to be known as
Administration members, to be appointed by the Board to serve for
such terns as it may s;oecify.
Section 3, Each trade or industrial association directly 603
or indirectly particiT)ating in the selection or activities of
the Code Authority shall (l) imoose no equitable restrictions
on membership, and (2) submit to the Board true copies of its
articles of association, by-laws, retaliations, and any amendments
when made thereto, together nith such other information as to
raembershi-o, organization, and activities as the Board may deem
necessary to effectua.te the purposes of the Act,
Section 4, In order that the Code Authority shall at all 604
times be trul'^^ representative of the trade/ industry and in other
respects comoly \7ith the provisions of the Act, the Board may
prescribe such hearings as it may deem proper; and thereafter if
it sliall find that the Code Authority is not truly representa-
tive or does not in other res;oects comply '.■ith the provisions of
the Act, may require an appropriate modification of the Code
Authority,
Section 5, HothiU;': contained in this Code shall constitute 605
the me: ibers of the Code Authority partners for any purpose. Nor
shall pjiy member of the Code Aa.thorit;^'' be liable in any manner to
anyone for any act of any other member, officer, agent, or era-
ploj/ee of the Code Authoritjr, Nor shall any member of the Code
Authority, exercising reasonable dili;:-ence in the conduct of his
duties hereunder, be liable to anj'-one for any action or ommission
to act uiider this Code, exce-ot for his o\'n \7ilful malfeasance or
non-feasance.
9307
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Section 6. If the Board shall at any time determine that any 606
action of a Code Authority or any a,,-ency thereof may "be -onfair or
unjust or contrary to the puolic interest, the Soard may require
that such action iDe suspended to afford an opportunity for investi-
gation 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 imless it shall fail to
disapprove after thirty days notice to it of intention to proceed
witn such action in its original or modified form.
Powers end duties
Section 7. Subject to such rules and reflations as may "be 610
issued hy the Board, the Code Authority shall have the follouing
powers and duties, in addition to those authorized "by other pro-
visions of this Code:
(a) To insure the execution of the provisions of this Code 511
and to provide for the compliance of the trade/ industry xiith the
provisions of the Act,
(b) To adopt by-la\7s and rules and reflations for its 612
■nrocedure,
(c) To obtain from members of the trade/ industry such in- 613
formation and reports as are required for the administration of
the Code, In a.ddition to information required to be submitted
to the Code Authority'-, members of the trade /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; pro-
vided tha,t nothing in this Code shall relieve any member of the
trade/ industry of any existing obligations to furnish reports to
any government agency. No individual re-oort shall be disclosed
to any other member of the trade/ industry or any other party ex-
cept to such other Governmental agencies as may be directed by the
Board,
(d) Each member of the industry'- shall kee^o accurate and 614
complete records of its trenssctions in the industry v:henever
such records may be required under any of the provisions of this
Code, and shall furnish a^ccurate re-oorts based upon such records
concerning any of such activities TThen required by the Code Author-
ity or the Board, If the Code Authority or the Board shall
determine that substantial doubt exists as to the accuracy of any
such repoi^t, so much of the pertinent boohs, records and papers
of such member as may be required for the verification of such
reToort laay be examined by an impa.rtia,! agency, agreed woon between
the Code Authority and such member, or in the absence of agreement,
appointed by the Board. In no case shall the frets disclosed by
such examination be made available i?i identifiable form to any
competitor, whether on the Code Authority or otherwise, or be
given ejiy other publication, except such as may be required for
the proper administration or enforcement of the provisions of this
Code,
9307
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(e) To use such associations ar.u other a^^encies as it deens 615
proper for the carr.ying out of DJCi'j of its activities provided for
herein, -orovidec. t>jat no thin;- herein shD.ll relieve the Code Authority
of itc duties or resoonsitilities under this Co-.e and that such trade
associations sna acjencies shiSll at all times be suhject to and com-
r)lj nith the provisions hereof,
(f ) To na'j.e recom-iendations to the Board for the coordination 616
of the adriinistration of this code and such other codes, if any, as
may he related to or affect merabers of the trade/ industry,
(g) 1, It oein- found necessary in order to sup'oort the 617
administration of this code and to maintain the standards of fair
conroetition established hereunder and to effectuate the policy of
the Act, and Code Authoritj^ is authorized:
(a) To incur such reasonable obligations as are 613
necesse.ry and proper for the fore^roing pur-
poses, and to meet such obligations out of
f"unds rrhich may be ra.ised as hereinafter provided
and which shall be held in trust for the pur-
poses of the Code J
(b) To submit to the Board for its approval, sub- 619
ject to such notice and op'oortunity to be heard
as it may deem necessary (l) an itemized budget
of its estijiated expenses for the foregoing
■ourposes, and (2) an equitable basis upon which
the f-onds necessary tc support such bud:3et sh-all
be contributed "oj members of the trade/ industry;
(c) After such budget and basis of contribution have 62C'
been approved ''oy the Board, to determine and ob-
tain e suitable contribution as above set forth
by all me::bers of the trade/ industry, and to that
end, if necessary, to institute le^'^'al proceedings
therefor in its own name.
2, Each member of the trade/ industry sh^all pay his or its 621
equitable contribution to the expenses of the maintenance of the
Code Authority, determined as hereinabove provided, and subject
to r-o2es end. reg-alations pertaining thereto issued by the Board,
Only members of the trade/ industry compl^^in- with the code and
contributing to the expenses of its administration as hereinabove
■orovided, (unless duly exempted from raakin~ such contributions),
shall be entitled to participate in the selection of members of
the Code Authority or to receive the benefits of ejiy of its
voluntary activities or to mal^e use of any emblem or insignia of
the national Eecovery Administration,
3, The Code Authority shall neither inc-jr nor pay any obligar- 622
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
Board; and no subsequent budget shall contain any deficiency item
for ezrpenditures in excess of ^^rior budget estimates except those
which the Board shall have so approved,
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(h) To rcconmend to the Bocird any action or measures deeraed SSG
advisc/olc, including further fair trade practice -provisions to
govern menhers of the trade/ industry in their relations with each
other or nith other trades/ industries, i.eacures for industrial
■olannin^-, and stabilization of employment; and including modifications
of this Code which shall "becone effective as part hereof upon approval
by the Aciainistrator after such notice and hearing as he may specify.
(i) To ap-QOint a Trade Practice Committee which shall meet 624
with the Trade Practice Coraiaittees appointed under such other
codes as may be related to the trade/ industry for the purpose of
formulating fair trade practices to govern the relationship's
between employers under this code and under such other coC.es to
the end that such fair trade practices may be proposed to the
Board as amendments to this code and such other codes
(j) To provide appropriate facilities for arbitration, and 635
subjoct to the approval of the Administration, to_prescribe ruies
of procedure and rules to effect cont/liance with awards and de-
terminations.
(k) The Code Authority sh>all cause to be formLLLated and 526
keer) current a classification of all t'^^jjes of customers of the
trade/ industry. Such classification shall be subject to the
disapproval of tne Board and shall contain: (a) a complete
list of all of the classes of customers of the trade/ industry,
including a class to cover every known type of customer^ and
(b) definitions or descriptions of the several classes in terms
of fimctions performed, or in other ap-oropriate terms such as
^urcliasers of defined qurji titles.
After submission to the Board, if there is no disapproval 627
of request for suspension of action within twenty days, full in-
formation concerning ihe classification shall be ma.de available
to all members of the trade/ industry. No one shall tr/ intimida^-
tion, 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 exclusion of any
class of customers from the classification, or the use of uniform
or stipulated prices, discouits, or differentials; and each
member of the trade/ industry nay at all times classify his own
customers in accordance with h.is own judgment,
(l) There shall be established a Labor Complaints Com- 628
mittee for the trade/industry, which shall consist of an eqijal
n-um''aer of representatives of employers and employees and an
impartial chairman. The Board shall appoint such impartial
chairman upon the failure of the committee to select one by
agreement. If no truly representative labor organization exists,
the enroloyee members of such board nay be nominated by the
Labor Advisory Board of the National Recovery Administration
and appointed by the Board, The employer representatives shall
be chosen by the Code Authority. Such Committee shall deal
with complaints of violations of the labor provisions of this
Code in accordance with rules and regulations. The Labor Com-
9307
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plaints Committee nay establish such divisionrd , regional, and local 628
industrial adjustnent agencies as it raa^'- deera desirable, each of
which shall be constituted in like iaanner as the Labor Complaints
Committee,
AR110L2 111
TPJU3E PRACTICE RULSS
Rule 1. Inacc-Q-rate advertising
No member of the trade/ industry shall publish advertising 701
(whether printed, radio, display, or of an7 other nature), which
is r-isleadin^: or inaccurate in any material par tic-alar, nor shall
any menber in any vray misrepresent any goods (including but '-with-
out lir.itrtion its use, trade-nark, grade, quality, o/oantity,
origin, size, substance, character, nat-cire, finish, material, con-
tent, or ^^repal'•ation) or credit terns, values, policies, services,
or the nature or form of the business conducted.
Rule 2. 7alse billing
i<!0 member of the trade/ industry shall kno'ringly witlihold from 702
or insert in any quotation or invoice any statement that makes it
inaccurate in any material particiolar.
Rule 5, Inaccurate labellin^s;
No member of the trade/ industry shall brand or mark or pack 703
any goods in any manner ^/hich tends to deceive or mislead purchasers
with respect to the brand, grade, quE-lity, quantity, origin, size,
substance, character, nature, finish, material content or prepara^-
tion of such goods.
Rule 4, Jefanation
No member of the trade /industry shs.ll defame a competitor 704
by falsely imputing to him dishonorable conduct, inability to
perform contracts, or questionable credit standing, or by other
false representation, or by falsely disparaging the grade or
qualit"'- of his goods.
Rule 5, Ihreats of law s-'.iits
No me.iber of the trade/ industry shall publish or circulate 705
unjustified or unrrarranted threats of legal proceedings which
tend to or have the effect of harassing cometitors or intimidat-
ing their customers.
Rule 6. Secret rebates
No member of the trade/ industry shall secretljr offer or make 706
any -oaj^ent or allowance of a rebate, refijmd, conmission, credit,
unearned discount, or excess allor^ance , whether in the form of
money or otherwise, nor shc.ll a menber of the trade/ industr''- secret-
ly offer or extend to an3'- customer pny S'oecial service or privilege
9307
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not extended to all customers of the same class, for the purpose of 706
influencinji a sc.le.
Rule 7, Brioinfp; employees
Ho member of the trade/ industry shall give, permit to "be given, 707
or offer to ^.ive , anything of value for the purpose of influe..cing
or reu£.rding 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 person, without the
knowledge of such employer, principal, or person. This provision shall
not be construed to prohibit free and general distribution of articles
corar.ionlj'- used for advertising except so far as such articles are
actually used for coranercial briberjr as hereinabove defined.
Rule 8, Inducing breach of existin.? contracts
No member of the trade/ industry shall rilfully induce or attempt 708
to induce the breach of existing contracts betneen comoetitors and
their customers by any false or deceotive means, or interfere with or
obstruct the performance of any such contractual duties or services
by any such neans , with the purpose and effect of hampering, injuring,
or embarrassing competitors in their business.
Rule 9 . Coercion
>To member of the trade /industry shall require that the purchase 709
or lease of arrj goods be a -prerequisite to the purchase or lease of
any other goods.
Rule 10. O^en Tjrice -provisions
Sach member of the trade/ industry shall file with a confidential 711
and disinterested agent of the Code Authority, or if none, then with
such an agent designated by the Board, identified lists of a" J. of his
prices, discounts, rebates, allowances, and all other terras or condi-
tions 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 con-
tain the price terras for all such standard products of the trade/ in-
dustr;'^ as are sold or offered for sale by sa,id member and for such
non-standard products of said member as shall be designated oy the
Code Authority, Said price terms shall in the first instance be filed
within days after the date of approval of this provision.
Price tarr.s and revised price ter:.is shall become effective imnediateli'-
upon receipt thereof by said agent. Imiiediately upon receipt thereof,
said agent shall by telegraph or other equally prompt means notifj-
said member of the time of such receipt. Such lists and revisions,
together with the effective time thereof, sliall upon receipt be
iranediately and simultaneously distributed to all members of the
trade/ industry and to all of their customers who have applied therefor
and have offered to defray the cost actually incurred by the Code
Authority in the preparation and distribution thereof, and be avail-
able for inspection by any of their customers at the office of such
agent. Said lists or revisions or any part thereof shall not be made
available to any person ^jintil released to all me::bers of the trade/-
9307
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industry and their customers, as aforesaid; provided, that prices 711
filed in the first instance shall not "be released until the expira^
tion of the aforesaid day period after the approval of this
Code, The Code Authority shall maintain a permanent file of all
price terms filed as hereinabove provided, and shall not destroy
any part of such records except upon written consent of the Board,
Upon reo^uest the Code Authority shall furnish to the Board or
any duly desi.^nated agent of the Bo^rd copies of any such lists or
revisions of price terms,
yhen any member of the trade/ industry has filed any revision, 712
such member shall not file a higher price within forty-eight hours.
1^0 member of the trade/ industry shall sell or offer to sell 713
any -oroducts/ services of the trade/ industry, for v:hich price
terms have been filed pursuant to the provisions of this Art_^le,
excex)t in accordance with such price terms,
No member of the trade/industry shall enter into any agree- 714
ment, understanding, combination, or conspiracy to fix or maintain
price terms, nor cause or attempt to cause any member of the
trade/ industry to change his price terras by the use of intimida-
tion, coercion, or any other influence inconsistent \7ith the
maintenance of the free and open market which it is the purpose of
this Article to create.
Rule 11, Costs and price cutting
'The standards of fair competition for the trade/ industry with 720
reference to pricing practices are declared to be as follows:
(a) Wilfully destructive price cutting is an unfair method 721
of competition and is forbidden. Any member of the trade/ industry
or of any other trade/ industry or the customers of either may at
any time complain to the Code Authority that any filed price con-
stitutes unfair competition as destructive price cutting, im-
periling small enterprise, or tending toward monopoly or the im-
pairment of code wages and rorking conditions. The Code Authority
shall within five days afford an opportunity to the member filing
the price to answer such complaint and shall within fourteen days
make a railing or adjustment thereon. If such ruling is not concur-
red in bj- either party to the complaint, all papers shall be re-
ferred to the Research and Planning Division of the National Re-
covery Administration which shall render a report and recomme-ia^
tion thereon to the Board.
(b) IThen no declared emergency exists as to any given product, 722
there is to be no fixed minimum basis for prices. It is intended
that soimd 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 723
belo\/ the stated minimum price of such product, in violation of
paragraph e hereof, is forbidden,
9307
-86-
(d) If the Board, after investigation s^iall at any time find 724
toth (1) that an emergency l^s arisen within the trade/ industry
adversely affecting sraall enterprises or v;ages or labor conditions,
or tending toward monopoly or other acute conditions uhich tend to
defeat the purposes of the Act; and (2) that the deternination of
the stated riinimuin -orice for a specified -jroduct within the trade/-
industrs" for a limited period is necessary to mitigr.te the condi-
tions constitutinr'? such emergency and to effectuate the purposes of
the Act, the Code Authority may c^use an imparrial agency to in-
vestigate costs and to recomriend ±o the Board a determination of the
stated ninij-ium price of the product affected "by the emergency and
thereu-pon the Board may proceed to determine such stated minimum
price,
(e) TThen the Board shall have determined such stated minimum 725
price for a. specified product for a stated period, which price
shall ce reasonably calculated to mitigate the conditions of such
emergency and to effectuate the purposes of the Act, it sha.ll
publish such price. Thereafter, during such stated period, no
member of the trade/ industry shall sell such specified products
at a net realized price below said stated minimum price and any
such sale shall be deemed destructive price cutting. From time
to time, the Code Authority may recom-nend review or reconsidera-
tion, or the Board may cause r^ny deter:ninations hereunder to be
reviewed or reconsidered and appropriate action taken.
Rule 12, Cost findin
£i
The Code Authority sho.ll cause to be fomiulated methods of 731
cost finding and accounting capable of use by all members of the
trade/ industry and shall submit such methods to the Bor.rd for re-
view. If approved by the Board, f-jll information concerning such
methods shall be made available to all members of the trade/ in-
dustry;-. Thereafter, each meiriber of the trade/ industry shall
utilize such methods to the extent found practicable , l^othing
herein contained shall be construed to permit the Code Authority,
any ag-ent thereof, or any member of the trade/ industry to suggest
uniform additions, percentages, or differentials, or other uniform
iteris of cost which are designed to bring about arbitrary uniformity
of costs or prices.
Rule 1 3, Adve r t i s i ng all o wa nc e s
No member of the trade/ industry shall designate as an "advert is- 741
ing 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,
offered or given by him to any customer,
No member of the trade/ industry shall offer or give any con- 742
sideration merely for "pushing", or "advertising," or otherwise
than for definite and specific advertising or promotion services.
Such consideration shall be given only pursuant to a se^oarate written
contract therefor, which contract shall specifically and completely
set forth the advertising or promotion services (in such manner that
9307
-37-
their s-:)eciiic character ma-,- be -understood "by other ne ibers of the 712
trade/ industry and their customers) to be jjerforned by the recipient
of said consideration, the precise consideration to be paid or given
therefor by said ;je:iber, the method of determining performances, and
all othsr t-jr-.s and conditions relating thereto.
(The follo\:ing are exai;plcs of provisions for publicity nhich
may be found norkable and desirable oy particular industries.)
Lxauple_l, I. mediately upon the ma.king of any such contract 743
for advertising or promotion services by any mer.iber of the trade/in«
dustry, a t:;r.e copy thereof shall be filed by said neraber rTith a
confidential and disinterested agent of the Code Authority (as
■nrovided. for in this code), or, if none, then vrith such an agent
to be designated oy the Board, Said agent shall maintain all coi^ies
of such contracts on file until six months after the termination
thereof, and. shall malie the same available at his office for in-
spection at all reasonable times oy all me:ibers of the trace/in-
dustry, and all of their c us toilers, and shall distribute a true
co-'iy of any such contract to any member of the industr"^?- or any
customer who applies therefor and offers to pay the cost actually
incurred, ty the Code Authority in the actual preparation and. dis-
tribution thereof; provided, tliat no such inspection or copy shall
be permitted or made available to any person until permitted or
mad-e available to all members of the industry and their customers,
as aforesaid. Upon request, said agent shall furnish to the Board,
or any d.uly designated agent of the Board, copies of any such
contract,
Exarrole 2, Immediately upon the making of any such contract 744
for advertising or promotion services by any member of the trade/-
industrjr, a true copy thereof shall be filed \iith a confidential
ajid disinterested agent of the Code Authority (as provided for in
this Code), or, if none, then Tith such an agent to be designated
by the Board., Said agent shall thereupon proceed to have copies
of such contract published in a journal or Journals or other
appropriate medium of general circulation among members of the
t r ade / ind-us t r^;- ,
Rule 14, Liquidated dsjnages
Any member of the trade/ Indus try may enter into an agreement 751
with a.ny other member or members of the trade/ ind.us try provid'-ng
for the pa2niient of Liquid.ated damages by any party thereto u]'— n
violation oy him of any provision of the Code, provided, however,
tiiat such agreement shall become effective and binding on the
parties thereto only after the execution thereof shall have re-
ceived the consent of the Board,
Rule 15, Standards
(a) Within thirty days after the effective date of the Code, 761
the Code Committee sliall establish a permanent standards com.mittee,
two members of which shall be appointed by the Board to represent
Government and Consumer interests,
9307 .
-88-
("b) Tills Comi.iittee shall:
(1) Make studies, and inv9atii'?;ations for the estrMish- 762
raent of classifications, dimensional standards, standards of quality
(grades), and labeling of the products of this industr^r, in coopera^
tion with the Arierican Standards Association or the Bureau of
Stande.rds of the United States Departrne-.it of Coni'ierce, and submit
recomnendations based upon such studies to the Code Comr.ittee ^-'ith-
in six months of the date of the Con.iittee's appointment,
(2) Proposes a.ooropriate revisions of approved standards 763
frora ti;-ie to time,
(3) Advise the Trade Practice Complaints Com. -ittee con- 764
cemir:.^- the enforcement of all such stando.rds as established and
approved,
(c) Upon submission of the Comr.ittee' s findings to the Code 765
Committee, the Code Committee shall immediately submit such standards
either to the American Standards Association for consideration and
ap-jroval or to the B^oreau of Standards of the United States Depart-
ment of Commerce for consideration and promulgation; provided, how-
ever, tha,t in cs.se of disagree; ":ent -.rithin the Committee, the Code
Comiiiittee shall determine, subject to the ap^oroval of the Board,
the na.ture of the standards to be submitted to such standardizing
agencies,
(d) After promulgation and such revie-, as the 3o?.rd ma^'' de- 766
termine, these standards may be approved as a fair trade practice
to be i^ndator;?' upon all members of this trade/ industry pending
the approval of subsequent standards or revisions of standards
v/hich may oe established from time to time txii"0U;;;':h the same pro-
cedure as set forth above,
(e) It is further provided, hov/ever, that no standard shall 767
be approved by the Board ^'^hich may be construed in any m.aterial
particular as prohibiting the manufacture and/or sale of non-
stsjidard industry products clearly identified to purcha.sers as to
their deviation from such standards, if such non-standard products
are in no -Tay harmful to the users.
Rule 16. Desi:.-pi ^^rotection; Plan Number 1
I/iandatory registration
(a) No member of this industry shall ta^ce orders for, or use 771
in the manufacture of anj"- products of this industr''', "my design em-
bodied in such products unless an exact copy thereof has been re-
gistered vrith the Design llegistration Burea.u of the industry and
unless such mem,ber is the holder of the registration certificate or
has obtained the v/ritten consent of the member making the registrar
tion. This rule shall not a;oply to such standard or stable designs
coraroiled by the said Registration Bureau and on file therein, and
pro^^ided that nothing her'^in contained shall li.iit or deprive any
member of this industr^r of any rights or benefits existing under
the present patent or co"D?Ti.j,ht lairs,
9307
-89-
("b) The term "design" as used in this industry shell mean and 772
be limited to the effect obtained by a combination of such of the
follonin;^; elements as are embodied in a -oroduct manufactured in this
industry: (l) the shape resulting from the method of cutting, sewing,
draping, and pressing; (2) the combination of fabrics and colors,
including their use and placement; (3) the decoration, including the
kind aiid ^oiacement; provided that the term "design" shall not include
style trend.
(c) There shall be designated by the Code Committee, subject 773
to the a-rproval of the Board, an impartial agency to be knovrs as
the "Design Registration Bureau." Said Bureau shall have the folio:?-
ing poT/ers and c'uties, subject to such rules and regulations as may
be issued by the Board:
(1) Said Bureau shall comoile anc make permanent a list 774
of all standard or stable designs now recognized as such in this
industry, and UDon completion of such compilation shxall make such
list available to all members of this industr;^'-,
(2) Following completion of the compilation of such list 775
of standard or stable designs the said Bureau shall not accept for
registration any design, the identical design of 'vhich is contained
in said compiled list, or any design previously registered, "provided
that \7henever a design so submitted is rejected for registra.tion on
the grounds that it is either contained in the compiled list, or has
been -oreviously registered 'oj said Bureau, the rejected application
may be referred for determination to an arbiter agreed upon b - the
Code Gom.iittee and the member whose registration vzas rejectee ■. Pro-
vided that any design accepted for registration must be used within
three months after its registration, otherwise said design shall be
classified as a stable or standard design, and provided further that
after one year from the date of its registration the said registered
design shell be classified as a stable or standard design,
(3) The Code Committee shall have the right to require 776
a fee to be paid by the member of the industry submitting the de-
sign for registration, the amount of ^;diich fee shall be recommended
by the Code Committee and approve d by the Board,
Design iirotection; Plan Number 2.
No registration
(a) No member of this industry shall take orders for, or use 777
in the manufacture of his products any design embodied in such
products previously used and ov/ned bj?- any other member of this in-
dustry without first obtaining writton -oermission to use such de-
sign from said prior user, provided that this -prohibition shall not
apply to standard or stable designs used in the industry, and pro-
vided fiu-ther that nothing herein contained shall limit the protection
or right granted under the existing patent and c opyright laws,
(b) Tiie terra "design" as used in this industry shall mean and 778
be limited to the effect obtained by a combination of such of the
follov/ing eleraents as are embodied in a product manufactured in this
industry: (l) the shape resulting from the method of cutting, sewing,
9307
-90-
draping, and pressing; (2) the combination of fabrics and colors, 778
including their use and placement; (3) the decoration, including
kind a.nd placement; provided that the terra "design" shall not in-
clude style trend.
(c) Any coraolaint made to the Code Comiaittee imder this pro- 779
vision shall be referred to an impartial arbiter or commission
agreed upon by the person comTDlained of and the Code Com.nittee and
such determinatiqn made by such impartial arbiter or commission
shall be subject to revic? by the Board.
ARTICLE VIII
EXPORT TRADE
No provision of this Code relating to prices or terms of sell- 801
ing, shipping, or marketing shall apply to exnort trade or sales or
shipments for erport trade, "Export Trade" shall be as defined in
the Export Act adopted April 10, 1918.
ARTICLE IX
MODIEICATIOI
Section 1. This Code and all the provisions thereof are ex^ 811
pressly made subject to the right of the President, in accordance
with the provisions of subsection (b) of Section 10 of the Act,
from time to time to cancel or modify any order, approval, license,
rule, or regulation issued under Title I of said Act.
Section 2. Such of the provisions of this Code as are not re- 812
quired to be included herein ''oj the Act may, \7ith the approval of
the Board, be modified or eliminated in such manner as may be in-
dicated by the needs of the public, by cha,nges in circumstances, or
by ez^erience. All th3 provisions of this Code, unless so modified
or eliminated, shall remain in effect imtil June 16, 1935.
ARTICLE X
LiOl^OPDLIES. ETC.
No provision of this Code sliall be so a^Tolied as to permit 821
monopolies or monopolistic practices, or to eliminate, oppress,
or discriminate against small enterprises.
ARTICLE XI
PRICE INCREASES
Whereas the policy of the Act to increase real purclmsing 831
power villi be made more difficult of consummation if prices of
goods and services increase as rapidly as wages, it is rdcogniz-
ed that price increases except such as may be required to meet
individual cost should be delayed, and \7hen made such increases
should, so far as possible, be limited to actual additional in-
creases in the seller's costs,
9307
-91-
ARTICLE XII
Eg?ECTI\:S DATE
This Code shall "become effective on the second Mondaj?- af-^3r its 841
approval "by the president.
9307
-92-
II-ID^
Accountant, 1197
Accounting systems. See Cost Systems
Act, definition, 1191
purpose J 1010-1012
Administration, compliance, 1803
effect of code provisions, 1802
general aspects, 1800
industry's share, 1804
organization of industry, 1810
records and reports, 1894
responsilDility of Government, 1801, 1856
statistical information, 1891
See also Code authority
Administration memters, 1831
Advertising, allowances, 1650-1636
misleading, 1511
Agreements, existing, 1482
under the Act, 1082
Allowances, advertising, 1630-1636
trade-in, 1620-1622
Amendments, 5100
application "by industry, 5120
code provision for, 1052
initiation of action, 5133
modification "by President, 1051
of provisions contrary to policy, 5121, 5131
of unworkahle provisions, 5132
proposals "by IMSA, 5140
Appeal I'rom code authority, 1858
Apprentice, definition, 1155
hours, 1236
wages, 1333
Arbitration, 1953
Assent, 1132
no requirement of, 1981
not necessary to vote, 1825.1
Assessments, apportionment, 1872
payment essential to voting, 1825.1
Averaging of hours, generally, 1240
continuous process employees, 1242
employment for less period, 1244
inclement weather, 1245
office employees, 1241
watchmen, 1243
Basing point systems, 1792
Bids, conformance to stipulated price, 1694
Branding, false, 1512
Brands, misappropriation, 1521
Brihery, commercial, 1560
Budgets, 1871
Bureaus, estimating, 1786
By-laws of code authority, 1841-1842
9307
-93- Capacity-
Capacity, limitation of, 1650
Child labor, forbidden, 1430
emplojinent by parents, 1434
evidence of age, 1433
exceptions, 1432
hazardous occupations, 1431
Children, night work, 1495
Classification, customers, 1691
of employees, 1151, 1152
of members of industry, 1133
Code administration. See Administration
Code authority —
Administration members, 1831
agencies, 1860
appeal from acts, 1858
by-laws, 1841-^1842
compliance functions, 1852
eraTDloyee representation, 1832
finances, 1870-1872
functions generally, 1850
incorporation, 1843
individual liability, 1859
information and reports, 1853
inter-industry relationships, 1854
limitations on authority, 1856
members of industry. 1812.1
modification of, 1813
nature, 1810
organization, 1840
power to bind industry, 1851
qualifications, 1812
i*.Qcb^:'iition, 1827
representative requirements, 1812^2
review of acts, 1857
selection, method, 1820
selection by NRA, 1822
selection, notice to industry, 1824
selection, time, 1821
size, 1811
special studies, 1855
sub-authorities, 1863
term of members, 1823
trade association, 1812,3, 1860
vacancies, 1826
voting by industry, 1825
Code provisions —
contrary to policy, 5121, 5131
degree of industry support required, 1092
discriminatory, 1606
effect of, 1802
enforceability, 1093
factual shov/ing, 1091
stays, 5150
9307
-94- Code
Code -orovisions —
J.
■uniformity of language, 1094
Tinwo r kat 1 e , 5132
See also particular provisions.
Codes —
amendment. See Amendments
applicants must "be representative, 1022
hearing, 1025
modification "by President, 1051
multiple coverage, 1031
prescribed "by President, 1081
purpose, 1010-1012
regional, 1070
supplemental, 1060
See also particular Torovisions
Coercion respecting prices, 1550
Collective "bargaining, 1410
"basis for wage schedules in codes, 1364
Collectors, hours, 1234
wages, 1337
Commercial "bri'bery, 1560
"by premiums, 1641
Commercial espionage, 1522
Commission salesmen and collectors, hours, 1234
wages, 1337
Company towns and stores, 1472
Competitive system, 1701
Complaints, dismissal for, 1494.1
Compliance, administration, 1803
essential to voting, 1825.1
functions of code authority, 1852
violators, purchase from, 1954
Confidential agency. See Impartial agency
Conservation, forest, 1952
purpose of Act, 1012.9
Consignment, 1613
Constitutional rights, 1027
Consumer interest, 1040
Continuous process employees, days off, 1271
hours, 1221, 1222
hours, averaging, 1242
Contracting out work, 1471
Contracts, adjustment due to codes, 1983
for advertising allowances, 1635
future delivery, 1614
infringement of territorial rights, 1531
interference with, 1530
sales, uniform, 1615
Contri"butions, 1872
Cooperative organizations, 1910-1911
Cost systems —
estimating bureaus, 1786
mandatory, 1784
relationship to price, 1781-1783
voluntary, 1785
9307
'*^^~ Courts
Courts, prior holdings, 1590
Customers, classification, 1691
restrictions, 1692
Daily hours, 1260
Damages , liquidated, 1893
Dating, extended, 1612
Pays off, 1270
holidays, 1274
Dealers, guaranty adjustments "by, 1683
Deductions frcra wages, 1391
Defamation, 1514
Definitions, 1100
Delivered prices, 1742
Design piracy, 1670-1672
Design registration, 1671
Destructive price cutting, complaints of, 1761
declaration of emergency, 1762
minimum price, 1763
unfair, 1760
Discriminatory provisions, 1606
Dismissal, notice, 1494,2
wage, 1392
Dismissal for complaints, 1494.1
Effective date, 1196
Emergencies. See Destructive price cutting
Emergency work, 1252
days othervase prohibited, 1273
Employees, classes, definition, 1151, 1152
continuous process, days off, 1271
definition, 1150
emergency work, 1273
enticement, 1493
idle time, 1291
Junior, wages, 1334
light occupations, definition, 1153
light occupations, wages, 1331
mixed employment, hours, 1237
mixed employment, wages, 1338
night work, 1295
processing, 1151
professional, definition, 1154
professional, hours, 1233
representation on code authority, 1832
scientific, hours, 1233
split shifts, 1294
technical, hours, 1233
See also particular classes of em-ployees
Employer, definition, 1140
small towns, 1131
working as an employee, 1292
9307
■rw
-96-
Enrployraent —
child lator. See Child lahor
conditions, posting, 1491
general conditions of, 1400
•orivileges, retention, 1497
stahilization, 1450
See also s-oecial forms of employment
Engineers, hours, 1231
Enticement, 1493
Equitable adjustment of wages, 1365, 1366
EsToionage, commerical, 1522
Establishment, requirement of, 1134
Estimating "b\ireau.s, 1785
Evasion of labor provisions, 1492
Executives, hours, 1232
Ejiports, 1951
Extended dating, 1512
False advertising, 1511
Ealse invoicing, 1513
False marking or branding, 1512
Federal Trade Commission, prior holdings, 1590
Finances, 1870-1872
Firemen, hours, 1231
Foremen, hours, 1232
Forest conservation, 1952
Free deals, 1640-1644
Future delivery contracts, 1614
Geographical application of codes, 1110
Goods, See Product
Graveyard shift, 1295
Guaranties, price decline, 1795
product, 1680-1683
Handicapped workers, wages, 1335
Hazardous occupations, 1431
Health, See Safety and health
Hearing, 1026
Holidays, 1274
Home, definition, 1193
Homework, conditions on prohibition of, 1453
conditions under which permitted, 1462
general policy, 1450-1461
safety and health, 1443
Hours —
averaging, 1240
continuous process industries, 1221, 1222
daily, 1260"
dual eraplo2,Tnent, 1296
emergencies, 1252
exceptions by industries, 1220
idle" time, 1291
in allied industries, 1211
mixed employment, 1237
operating, 1293, 1651
overtime, 1250
9307
Employment
-97- Hours
Hours —
peaks and tolerances, 1251
requirement of limitation, 1200
retail trades, 1223
service employees, 1231
split shifts, 1294
standard, 1210
See also particular classes of employees
Idle time, 1291
Impartial agencies, 1862
definition, 1198
for price filing, 1712.1
Imports, restrictionsj 1084
effect of code provisions, 1982
Incorporation of code authority, 1843
Indiistry —
classification of memhers, 1133
controlled enterprises, 1126
definition, 1120
degree of support required for proposed actions, 1092
delegation of power to code authority, 1851
exemption in small to\7ns, 1131
finances, 1870-1872
incidental activities, 1124
inter- industry relationships, 1854
memher of, 1130
organization for code administration, 1810
overlapping definitions, 1123
records and reports, 1894
representp.tion on code authority, 1812.2, 1825
scope of "manufacture," 1128
separate conduct of memhor's "business, 1135
several functions, 1127
small enterprises, 1025
special studies, 1855
statistical information, 1891
supplemental activities, 1125
voting "basis, 1025
Inequitable restrictions —
definition of industry, 1023,1
dues, 1023o3
expulsion, 1023.5
government of association, 1023.6
memhership restrictions, 1023,2
removal, 1023.7
voting, 1023.4
Insignia, 1880
withdrawal, 1882
Insular possessions, 1111
Invoicing, false, 1513
Junior employees, 1334
9307
-98- La'oels
Latels, 1881
Labor. See Employees; Employment
Labor agreements, existing, 1482
Laborers, 1151
Labor organization, freedom of choice, 1420
Labor provisions. See specific provisions; and generally,
Employment.
Laws, existing, 1481, 1672
Learners, age limit, 1156
comDletion of period, 1344
definition, 1156
need for, 1341
member of, 1343
wages, 1340, 1342
Licenses, 1083
Light occupations, definition, 1153
wages, 1331
Liquidated damages, 1893
Litigation, threats, 1551
Loss leader, 1770''1772
Lump-sum prices, 1744
Machine hour limitation, 1650
Maintenance employees, emergencies, 1273
hours, 1231
Manufacture, scoue of, 1128
Marking, false, 1512
Meals, 1498
Messengers, wages, 1334
Misrepresentation, 1511-1514
by premiums, 1643
Monopolies, 1024
Natural resource industries, 1652
ITight work, generally, 1295
more onerous than day work, 1332
women and children, 1495
Office boys, wages, 1334
Office employees, hours, averaging, 1241
hours, daily, 1241
Open prices o See Price filing
Organization, labor, freedom of choice, 1420
Overlapping definitions, 1123
Overtime, generally, 1250
pay, 1253
pay, pieceworkers, 1352
Payment of wages, 1391
Payment, terms, 1611
Peaks, 1251
Penalties, additional, 1892
Philippine Islands, 1110
Piece rates, fixed by code, 1364
9307
^-^ Piecenorkers
Pieceworkers, overtime rates, 1352
part hourly Ids' sis, 1354
period for computation of minimum, 1351
rejected vrork, 1353
vrage mininiim, 1350
Fopulationj 1194
wage differentials, 1322
Posting of la"bor provisions, 1491
Premiums, 1640-1644
Price cutting. See Eestructive price cutting
Price filing —
ado-otion of another's prices, 1743
"basis of prices, 1742
essentials, 1712
field for, 1722, 1723
general policy, 1710-1711
prices effective, when, 1741
records, preservation, 1745
statistics, 1750
unfavorable fields, 1721, 1724
waiting period, 1730-1732
Price fixing, agreements, 1550
emergencies, 1763
Prices —
"basing points, 1792
cost systems, 1781-1783
differentials, 1793
extras, 1793
general policy, 1701-1705
guaranty against decline, 1795
increases due to codes, 1S55, 1983
loss leader, 1770-1772
lumD-sum, 1744
repair work, 1794
resale, maintenance, 1791
Price statistics, 1750
prison labor, 1920
Product, guaranty, 1580-1683
identification for price filing, 1712,4
misrepresentation, 1511
repair, price, 1794
return for credit, 1693
standards, 1660-1664
su"bstitution, 154C
Production control, 1650-1653
Production quotas, 1650
Productive capacitj'-, 1012.5
Professional employees, definition, 1154
hours, 1233
Professions, 1032
Pu"blic interest, 1040
(Quotation, false, 1513
9307
-100- RelDates
Rebates, disguised as advertising allowances, 1633
secret, 1570
Regional codes, 1070
Registration of designs, 1671
Repair work, prices, 1794:
Representation, 1022
Resale price maintenance, 1791
Retail trades, hours, 1223
small towns, 1131
Return of goods for credit, 1693
Safety and health —
homework, 1443
program, 1442
provision for, 1440
study of, 1441
Sales affiliate, 1126
Sales contracts, uniform, 1615
Salesmen, commission, hours, 1234
wages, 1337
Salesmen, traveling, hours, 1234
Scientific employees, hours, 1233
Secret rebates, 1570
Selling methods, limitation, 1610
Shifts, limitation, 1295
split, 1294
Shipping crews, hours, 1231
Shop hours, 1293
Skilled workers, wages, 1363
Small enterprises, 1025
Southern States, 1192
wages, 1321
Speed-up, 1473
Split shifts, 1294
Stabilization of employment, 1450
Standards of product, 1660-1664
Statistical information, 1891
Stays, 5150
of experimental trade practices, 1605
Stretch-out, 1473
Substitution of goods and services, 1540
Subterfuge, 1492
Supervisors, hours, 1232
Supplemental codes, 1060
Technical emioloyees, hours, 1233
Terms of payment, 1611
Territories, 1111
Tolerances of hours, 1251
Trade, 1095
definition, 1121
local, 1131
Trade associations —
applications for codes, 1022
as code authority, 1812.3
inequitable restrictions. See Inequitable restrictions
9307
-101- Trade-in
Trade-in allowances, 1620-1622
Trade marks, misappropriation, 1521
Trade practices, attested, 1500
experimental, 1600-1605
not dealt vith "by code, 1590
See also particular types
Trade secrets, 1522
Transportation, 1498
Traveling salesmen and collectors, hoiirs, 1234
Truck drivers, hours, 1231
Uniform contracts, 1615
United States, definition, 1112, 1113
Vacations, 1496
Violations, additional penalties, 1892
liquidated damages, 1893
Violators, purchase from, 1954
Voting "by industry, 1825
Wages —
allied codes, 1313
deductions, 1391
dismissal, 1392
geographical differentials, 1321
industries allied to agriciilture, 1323
light occupations, 1331
manner of payment, 1391
mixed employment, 1338
overtime, 1253
pay period, 1391
population differentials, 1322
requirement of minimum, 1300
schedules, 1364
standard, 1310, 1311
weekly, 1312
women. 1332
See also particular classes of employees
Wages above minima —
adjustment, 1365, 1366
generally, 1360
rate "bases, 1362
schediiles, 1364
skilled workers, 1363
Waiting period for price filing, 1730-1732
Watchmen, days off, 1272
hours, 1235
hours, averaging, 1243
wages, 1336
Women, night v^^ork, 1495
wage discrimination, 1332
Work load, increase, 1473
Workmen's compensation, 1483
Zoning for prices, 1792
9307#
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