Code of fair competition for the corrugated and solid fibre shipping container industry, as approved on February 1, 1934

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Material Information

Title:
Code of fair competition for the corrugated and solid fibre shipping container industry, as approved on February 1, 1934
Portion of title:
Corrugated and solid fibre shipping container industry
Physical Description:
14 p. : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Container industry -- United States   ( lcsh )
Corrugated paperboard -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
"Registry No. 406-1-08."
General Note:
"Approved Code No. 245."
General Note:
At head of title: National Recovery Administration.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004920785
oclc - 63654633
sobekcm - AA00006350_00001
System ID:
AA00006350:00001

Full Text

AS APPROVED ON FEBRUARY 1, 1934


WE DO OUR PART


U;I ,-P Y y :P C-

Iii. rj -ii


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


For ale by the Superintendent of Documents W ington, D.C. Price 5 cents
For arle bp the Superintendent of Documents. Washington, D.C. - price 5 cents


Approved Code No. 245


NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION
FOR THE

CORRUGATED AND SOLID FIBRE

SHIPPING CONTAINER INDUSTRY


Registry No. 406-1--08

























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.; 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Bluilding.
Iouston, Tex.: Chamber of Commerce Building.
Indiinalpolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Miin.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia. Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.










Approved Code No. 245


CODE OF FAIR COMPETITION
FOR THE

CORRUGATED AND SOLID FIBRE SHIPPING
CONTAINER INDUSTRY

As Approved on February 1, 1934


ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE CORRUGATED AND
SOLID FIBRE SHIPPING CONTAINER INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Indus-
trial Recovery Act, approved June 16, 1933, for approval of a Code
of Fair Competition for the Corrugated and Solid Fibre Shipping
Container Industry, and hearings having been duly held thereon
and the annexed report on said Code, containing findings with
respect thereto, having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated Decem-
ber 30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved; provided how-
ever, that the provisions of Article VI, Sections 2 to 9 inclusive,
insofar as they prescribe a waiting period between the filing with
the Code Authority (i.e., actual receipt by the Code Authority) and
the effective date of revised price lists or revised terms and con-
ditions of sale be and they are hereby stayed pending my further
order; provided further, that within ninety days I may direct
that there be a further hearing on such of the provisions of said
Code as I may designate, and that any order which I may make
after such hearing shall have the effect of a condition on the approval
of said Code.
HUGH S. JOHNSON,
Admniniistrator for Induwstrial Recovery.
Approval recommended :
GEO. L. BERRY.
Division Adminitstrator.
WASHINGTON, D. C.
February 1, 1934.
37406--313-171-34 t1M







REPORT TO THE PRESIDENT


The PRESIDENT,
The Il'hite Houtse.
SIR: This is a report of the hearing on the Code of Fair Competi-
tion for the Corrugated and Solid Fibre Shipping Container Indus-
try, conducted in Washington on November 17, 1933, in accordance
with the provisions of Title I of the National Industrial Recovery
Act.
HOURS AND WAGES
For factory workers, this Code provides a standard work week
of 40 hours averaged over 5 weeks, but not more than 48 hours in
any one week, with provision for overtime for all hours in excess
of nine in one day and forty-five in one week. An allowance is made
for additional hours for 10 percent of such employees to do cleaning
and maintenance work which cannot be done while the machines
are in operation. For office employees the Code specifies a 40-hour
week averaged over 13 weeks, but not more than 48 hours in any one
week. Slightly longer hours are permitted for nonproductive
employees. .Night work for women is prohibited.
The minimum hourly wage rates prescribed are 400 for male fac-
tory labor and 35 for female factory labor in the North, and 320
for males and 300 for females in the South, with a proviso that in the
event that Southern wage rates under the Paper and Pulp Code,
approved November 17th, 1933, are fixed at a higher figure, as a
result of action taken pursuant to the Executive order approving
such Code, the Southern wage rates under this Code shall be raised to
the same figures.
Office workers are to be paid a minimum wage of $16 per week in
the North and $14 per week in the South.
The usual safeguards for nondiscrimination against female labor
and for the maintenance of wages above the minimum are provided.
The only exceptions to the prescribed wage rates are for office boys
and girls and handicapped workers.
SHARING OF BUSINESS
Provision is made whereby members of the Industry may join
in a voluntary agreement for sharing their business. All such agree-
ments must be filed with the Administrator, may contain no price-
fixing provision, and must provide that any member may withdraw
as a part of such an agreement at will, and without penalty. The
Administrator may withdraw the right to make or perform such
agreements at any time.
OTHER PROVISIONS
The Code contains the usual provisions for collecting statistics
and for filing reports with the Administrator. Open price selling
is authorized and sales below cost, except to meet competition, are
prohibited.
ECONOMIC EFFECT OF THE CODE
The Industry employed in April 1929, 13,200 persons, in April
1933, 10,800 persons, and in August 1933, 16,400 persons. The last








figure reflects in part the effects of the President's Reemployment
program, and in part an increase in volume due to better business
conditions. Measured by 1929 as a standard, there is no unemploy-
ment in the Industry.
In June 1933, 55% of Northern male labor received less than 40O
per hour. Female labor was concentrated largely between 200 and
30 per hour. In the South, 57% of male labor received between
200 and 30. per hour, and 54% of female labor received less than
200 per hour. The effect of the Code will be to increase the Indus-
try pay roll in the North by 25% and in the South by 40% over the
June level.
FINDINGS

The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the pro-
ceedings in this matter;
I find that.:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and manage-
ment under adequate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associa-
tion is an industrial association truly representative of the aforesaid
Industry; and that said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
Code.
For these reasons this Code has been approved.
Respectfully,
HUGH S. JOHNSON,
A dministraf on
FEBRUARY 1, 1934.














CODE OF FAIR COMPETITION FOR THE CORRUGATED
AND SOLID FIBRE SHIPPING CONTAINER INDUSTRY

To effectuate the policies of Title I of the National Industrial
Recovery Act, the following is hereby established as a Code of
Fair competition for the above-named Industry and shall be binding
on every member thereof:

ARTICLE I-DEFINITIONS

The following words are used in this Code with the meanings
herein set forth:
Industry "-The manufacture of Corrugated and solid fibre
board and, or the fabrication of the same into shipping containers,
packing materials, and other similar products.
Member "-A natural person, partnership, corporation, associa-
tion, trust, trustee, trustee in bankruptcy, or receiver engaged in
such Industry.
"Act "-Title I of the National Industrial Recovery Act.
"Administrator "-The Administrator for Industrial Recovery
under Title I of the Act.

ARTICLE II-OROANIZATION AND ADMINISTRATION

1. Seven persons engaged in the Industry to be elected by the
Board of Directors of the National Container Association, together
with such other person or persons not more than three in number as
the Administrator may designate are hereby constituted the Code
Authority of the Industry. The members of the Code Authority
designated by the Administrator shall act in an advisory capacity
and shall have no vote. Temporarily and until the Industry mem-
bers of the Code Authority are elected, the Members of the Executive
Committee of such Association shall be the Industry members of the
Code Authority. Industry members of the Code Authority shall
serve for one year, or until their successors are elected.
2. The said Association shall file with the Administrator certified
copies of any amendments of its Bylaws relating to eligibility or
admission to membership in such Association, or relating to the
method of selection of the members of such Board of Directors,
which such Association may hereafter adopt.
3. The Administrator may at any time, in order to effect proper
representation of the Industry, prescribe a different method for
(4)








selecting the Industry members of the Code Authority, and there-
after such members shall be chosen in the manner so prescribed.
4. The Code Authority is charged generally with the duty of ad-
ministering this Code under the sanction and with the approval of the
Administrator. All acts of the Code shall be subject to review by
the Administrator and to suspension, or cancellation by him in any
case in which he shall determine that any such act violates the pur-
poses of the National Industrial Recovery Act.
5. Nothing contained in this Code shall constitute the members
of the Code Authority partners for any purpose. Nor shall any
member of the Code Authority be liable in any manner to anyone
for any act of any other member, officer, agent, or employee of the
Code Authority. Nor shall any member of the Code Authority, exer-
cising reasonable diligency in the conduct of his duties hereunder, be
liable to anyone for any action or omission to act under this Code,
except for his own willful misfeasance of nonfeasance.
6. The expenses of administering this Code shall be borne pro
rata, in accordance with a formula to be adopted by the Code Au-
thority, by all members of such Industry who accept the benefit of
the services of the Code Authority or otherwise assent to this Code.
7. The Code Authority shall have power to investigate alleged
violations of this Code and acts or courses of conduct by any member
which are or appear to be contrary to the policy of the Act or which
tend or may tend to render ineffective this Code and to report the
same with recommendations to the Administrator.
8. The Code Authority may divide the country into geographical
divisions for the purpose of administering this Code.
9. The Code Authority may appoint a Divisional Committee for
each such geographical division and may delegate to such Committees
such of its powers and duties it shall deem necessary for the proper
administration of this Code under the sanction and with the approval
of the Code Authority.

ARTICLE III-IHO URS OF LABOR

1. Employees in the Industry shall not be required or permitted
to work hours in excess of the limits prescribed in the following
schedule:
SCHEDULE OF WORKING HOURS

(a) TWatchnmen.-56 hours in any one week, but not more than 6
days in any 7-day period.
(b) Chauffeurs and truckmen.-192 hours in any period of 4 con-
secutive weeks, provided, however, that time worked in excess of 10
hours in any one day and 48 hours in any one week shall be paid
for at not less than time and one third.
(c) Engineers, firemen, and elect rician s.-168 hours in any period
of 4 consecutive weeks, provided, however, that all time worked in
excess of 10 hours in any one day and 48 hours in any one week shall
be paid for as not less than time and one third.
(d) All other laborers, mechanical workers, or artisans employed
in any plant, mill, or factory, or on woork connected with the opera-
tion of such plant, mill, or factory.-An average of 40 hours per








week in each successive period of 5 consecutive weeks, but not more
than 48 hours in any one week, provided, however-
(1) that not more than 10% of such employees may exceed such
average when engaged in machine cleaning and maintenance and
routine plant cleaning work, which cannot be done while the
machines are in operation, and
(2) that all time worked in excess of 9 hours in any one day (or in
excess of 10 hours when the last hour of such 10 hours falls within
subsection (1) hereof) shall be overtime, and that all time worked
in excess of 45 hours in any one week (or in excess of 48 hours when
the last three hours of such 48 hours fall within subsection (1) here-
of) shall be overtime, and
(3) that all such overtime shall be paid for as not less than time
and one third, but this subdivision shall not be so construed as to
require payment for the same hours of overtime more than once.
(e) Exctcultives and their personal secretaries and other employees
engaged in a supervisoryy capacity receiving $35.00 or more per week
and outside salesmen.-No limitation.
(f) All other employees.-An average of 40 hours per week over
any period of 13 consecutive weeks, but not more than 48 hours in
any one week.
2. No limitation contained in said Schedule shall apply to em-
ployees of any class when engaged in emergency repairs or emer-
gency maintenance work occasioned by breakdowns or involving
protection of life or property, provided, however, that all time
worked under this section in excess of the limitations prescribed in
said Schedule shall be paid for as not less than time and one third.
3. No employee shall be permitted to work for two or more mem-
bers of the industry an aggregate number of hours in excess of the
number prescribed in said Schedule.
4. Female employees of the class described in subdivision (d) of
Section 1 of this Article shall not be required or permitted to work
between the hours of ten p.m. and six a.m.

ARTICLE IV-WAGES

1. The minimum rate of wage of any laborer, mechanical worker,
or artisan employed in any plant, mill, or factory or on work con-
nected with the operation of any such plant, mill, or factory shall be
as follows:
(a) In the Northern zone, which shall consist of all of the terri-
tory of the United States except the states named in subdivision (b)
hereof-
Male Labor, 40 cents per hour.
Female Labor, 35 cents per hour.
(b) In the Southern zone, which shall consist of the States of
Virginia, Tennessee, North Carolina, South Carolina, Georgia,
Florida, Alabama, Mississippi, Louisiana, Arkansas, Texas, and
Oklahoma-
Male labor, 32 cents per hour.
Female labor, 30 cents per hour.
2. In the event that the wages for labor in the Southern zone (as
such zone is described in the Code of Fair Competition for the Paper








and Pulp Industry approved by the President of the United States
by Executive Order dated November 17th, 1933) shall be increased
in accordance with recommendations made by the Administrator
and approved by the President pursuant to the provisions of such
Executive Order, then and in such event the wages of labor in the
Southern zone (as such zone is described in the Code) shall be
deemed to have been changed to conform thereto and the Adminis-
trator may direct. that this Code, as so amended, be reprinted and
republished.
3. Piece workers shall be paid at rates which will yield a worker
for an hour's work not less than the minimum rate above prescribed.
4. The minimum rate of wages for all other employees shall be as
follows:
(a) In the Northern zone, as defined in Section 1 hereof, $16.00
per week.
(b) In the Southern zone, as defined in said Section, $14.00 per
week.
5. Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male enmploy-
ees. The Code Authority shall, within 90 days after the effective
date of this Code, file with the Administrator a description of all
occupations in the Industry in which both men and women are
employed.
6. The wage rates of all employees receiving more than the mini-
mum rates herein prescribed shall be reviewed and such adjustments,
if any, made therein as are equitable in the light of all the circum-
stances, and within sixty (60) days after the effective date hereof,
the Code Authority shall report to the Administrator the action
taken by all members of the Industry under this section.
7. Office boys and girls under 18 years of age, to the extent of
not more than 5% of the total number of employees described in
Section 4 hereof, may be employed at a wage of not less than 80%
of the mitimum prescribed by said Section, provided that at least
one such office boy or girl may be employed by each establishment.
8. A person whose earning capacity is limited because of age
or physical or mental handicap may be employed on light work at
a wage of not. less than 80% of the minimum prescribed by this Code,
provided the State Authority or .other agency designated by the
United States Department of Labor shall have issued a certificate
authorizing his employment on such basis. Each member shall file
with the Code Authority a list of all such persons employed by him.

ARTICLE V-GENERAL LABOR PROVISIONS

1. No person under sixteen (16) years of age shall be employed
in the Industry. No person under eighteen (18) years of age shall
be employed at operations or occupations which are hazardous in
nature or dangerous to health. The Code Authority shall submit to
the Administrator within sixty (60) days after the effective date
of this Code a list of such operations or occupations. In any State
an employer shall be deemed to have complied with this provision
as to age if he shall have on file a certificate or permit duly signed
by the authority in such State empowered to issue employment or






8

age certificates or permits showing that the employee is of the
required age.
2. Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection. No em-
ployee and no one seeking employment shall be required as a condition
of employment to join any company union or to refrain from join-
ing, organizing, or assisting a labor organization of his own choosing.
Employers shall comply with the maximum hours of labor, minimum
rates of pay, and other conditions of employment approved or
prescribed by the President.
3. No provision in this Code shall supersede any State or Federal
law which imposes on employers more stringent requirements as to
age of employees, wages, hours of work, or as to safety, health,
sanitary, or general working conditions, or insurance or fire protec-
tion than are imposed by this Code.
4. No employer shall reclassify employees or duties of occupations
performed or engage in any other subterfuge for the purpose of
defeating the purposes or provisions of the Act or of this Code.
5. All employers shall post copies of Articles III, IV, and V of
this Code in conspicuous places accessible to employees.
6. Every employer shall make reasonable provisions for the safety
and health of his employees at the place and during the hours of
their employment. Standards for safety and health shall be sub-
mitted by the Code Authority to the Administrator within six (6)
months after the effective date of this Code.
7. No provision in this Code shall supersede provisions as to hours,
wages, and conditions of employment which are established for spe-
cific projects by competent governmental authority acting in accord-
ance with law, or to terms of employment which are established by
labor agreements now in force, where either the wages a.re higher
or the hours of labor are shorter, or both than are those set forth in
this Code.
8. The Code Authority shall make a study of conditions in the in-
dustry to determine the feasibility of the adoption of a shorter
working week and shall, within three (3) months after the effective
date of this Code, make a report of its findings to the Administrator.
The Code Authority shall also submit to the Administrator within
six (6) months after the effective date of this Code, a plan for the
stabilization and regularization of employment.
9. The manufacture or partial manufacture of any product of the
Industry in the home of a worker shall be prohibited.

ARTICLE VI-ACCOUNTING AND SELLING

1. The Code Authority shall, as soon as practicable, formulate a
standard method of accounting and costing for the industry and
submit the same to the Administrator. When it shall have been
approved by the Administrator, every member shall use an account-








ing and costing system which conforms to the principles of, and is
at least as detailed and complete as, such standard method.
2. The Code Authority may from time to time determine that an
open price plan of selling such product or products of the Industry
as it shall specify shall be put. into effect on such date as it shall fix.
Notice of such determination shall be announced to all known mem-
bers of the Industry who manufacture such products not less than
.30 days prior to the date so fixed.
3. At. least ten days prior to such date, every such member shall
file with the Code Authority a schedule of prices and terms of sale
for all such products or, in the alternative, shall be deemed to have
filed a schedule conforming in respect to price and terms of sale with
the schedule at any time on file wlich states the lowest price and
the most favorable terms.
4. All such schedules shall be in such form as the Code Authority
shall prescribe and shall contain all information necessary to permit
any interested person to determine the exact net price per unit after
all discounts or other deductions have been made, whether pertaining
to a single order, a commitment for future delivery, or a contract.
For the purpose of making comparable the schedules of different
members relating to products ordinarily sold on price estimates, the
Code Authority may prescribe a basic unit or units in terms of which
the price of materials used in the manufacture of such products
shall be stated in all price schedules. All such original schedules
shall become effective on the date fixed by the Code Authority as
provided in Section 2 hereof. Any such schedule, or any price
therein, may apply nationally or may be limited to one or more geo-
graphical divisions created as provided in Section 8 of Article II
hereof.
5. A revised schedule, or a new schedule, or a noice of withdrawal
of a schedule may be filed by a member with the Code Authority at
any time, provided, however, that any member who withdraws a
schedule without substituting a new schedule therefore shall be deemed
to have filed a schedule conforming in respect to price and terms
of sale with the schedule at any time thereafter on file which states
the lowest price and the most favorable terms. Any schedule or
notice filed hereunder, shall become effective five days after the date
of filing, provided, however, that an increased price may become
effective at such earlier date as the member filing the same shall fix.
6. The Code Authority shall promptly supply all members of the
industry, who manufacture any particular product, with copies of
all schedules, revised schedules, and notices of withdrawal, which
pertain to such product. Immediately upon receipt of information
relative to the withdrawal of a price for any product, any member
may file notice of withdrawal of his own price for the same product
effective as of the same date as the notice of withdrawal of such
other member. Immediately on receipt of information that a
schedule then on file has been revised, or that a new schedule has
been filed, any member may file a revised schedule conforming as to
price and terms to the schedule of such other member, and effective
on the same date, or may notify the Code Authority that he adopts
as his own the schedule of such other member. In the latter event,








he shall be deemed to have filed a revised schedule conforming to
the revised schedule of such other member.
7. No such schedule of prices and terms of sale filed by any mem-
ber, or in effect at any time, shall be such as to permit the sale of
any product at less than the cost thereof to such member determined
in the manner provided in Section 11 hereof, provided, however, that
any member may, by notice to the Code Authority, adopt as his own
a lower price filed by another designated member. Such adoption
shall become automatically void upon the withdrawal or revision
upward of the price adopted.
8. No member who shall have filed a price, or adopted as his own, a
price filed by another member for any product of the Industry, shall
sell such product for less than such price or upon terms or condi-
tions more favorable than stated in such price schedule. No mem-
ber, who shall have failed to file a price for any product for which
the open price plan is in effect, shall sell such product at a lower
price or on terms more favorable than the lowest price and most
favorable terms stated in any price schedule for such product then
on file.
9. The Code Authority shall, upon request, furnish at cost to
nonmembers copies of any price schedules which have been filed
with it. Such price schedules shall be made available to nonmembers
at the same time that they are sent to members.
10. No member shall sell any product of the Industry for which
no open price plan is in effect at less than the cost thereof to such
member, determined as provided in Section 11 hereof, except to meet
the price of a competitor whose price does not violate this Section.
11. Cost, for the purpose of this Article, shall be determined
pursuant to the method of accounting and costing prescribed as pro-
vided in Section 1 hereof as soon as such method is adopted, and
approved, and theretofore pursuant to the method employed by such
member subject to such preliminary rules as the Code Authority
shall from time to time prescribe with the approval of the Adminis-
trator, provided, however, that, for the purposes of this section,
under any accounting and costing method which may be used, cost
shall include the current delivered market price of materials whether
purchased or manufactured by the member.
12. For the purpose of determining whether Sections 7 and 10
hereof have been complied with, every member shall upon the request
of the Code Authority furnish a designated agency of the Code
Authority, in respect to closed transactions only, with complete in-
formation in regard to any quotation, order, contract, or sale of any
product of the industry, Including information as to specifications,
quantities, price, conditions of storage, transportation or delivery,
terms of billing, cash or trade discounts allowed, and other per-
tinent facts relating to such quotation, contract, or sale.
13. Nothing herein contained shall be construed to prevent the
disposition of distress merchandise, required to be sold to liquidate
a defunct or insolvent business or accumulated through errors in
manufacture or failure of the original purchaser to accept, in such
manner, at such price, and such terms and conditions as the Code
Authority may approve.








14. Nothing herein contained shall be construed to prevent the
fulfillment, of a bona fide contract existing on the effective date of
this Code.'
ARTICLE VII-VOLUNTARY SHARING OF BUSINESS

1. With the approval of the Code Authority, members of the In-
dustry may join in a voluntary agreement for the sharing of their
busine-s on such basis as they may determine provided, however, that
any member becoming a party to such an agreement, may withdraw
therefrom at any time without penalty, and, provided, further, that
no such agreement shall contain any provision relative to price fix-
ing. The Code Authority shall file with the Administrator a copy
of every such agreement.
2. The Administrator may at any time declare the foregoing sec-
tion void and of no effect.

ARTICLE VIII-REPORTS AND STATISTICS

1. Each member shall prepare and file with an impartial agent
designated by the Code Authority at such times and in such manner
as it may prescribe, such statistics, data, and information relating
to plant, capacity, volume of production, volume of sales in units
and dollars, orders received, unfilled orders, stocks on hand, inven-
tory both raw and finished, number of employees, wage rates, em-
ployee earnings, hours of work, and other matters as the Code Au-
thority or the Adlminintrator may from time to time require. Any
or all information so furnished by any member shall be subject to
checking for the purpose of verification by an examination of the
books and accounts and records of such member by any disinter-
ested accountant or accountants or other qualified person or persons
designated by the Code Authority.
2. Except, as otherwise provided in the Act, or in this Code, all
statistics, data, and information filed or required in accordance with
the provision-, of the Code shall be confidential and the statistics,
data, and information of one member shall not be revealed to an-
other member. No .such data or information shall be published ex-
cept in combination with other similar data and in such a manner
as to avoid the disclosure of confidential information. The Code
Authority shall arrange in such manner as it may determine for the
current publication of industry statistics to members.
3. Each member shall, within 30 days after the effective date of
this Code, file with the Code Authority a list of all his productive
equipment. used in this Industry and immediately on disposing of
any of such equipment or on acquiring any new productive equip-
ment for use in this industry shall report the same to the Code
Authority.
4. The Code Authority shall make such reports to the Administra-
tor as he may from time to time require.
5. In addition to information required to be submitted to the Code
Authority there shall be furnished to Government Agencies such
SSee paragraph 2 of order approving this Code.








statistical information as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act.

ARTICLE IX-RECOMMENDATIONS

1. The Code Authority may, from time to time, present to the Ad-
ministrator recommendations based on conditions in the Industry
which will tend to effectuate the operation of this Code and the policy
of the Act, and in particular along the following lines:
(a) For the establishment of additional rules of fair trade prac-
tice for the Industry and for the codification of its trade customs,
and the enforcement thereof.
(b) For the establishment of a standard method for determining
the current cost of any product of the Industry.
(c) For the establishment of terms and conditions regarding sales
to dealers and distributors by Members of the Industry.
(d) For the establishment of plans to equalize production with
demand.
(e) For the establishment of a plan and method for the sharing
of available business equitably among members of the Industry.
(f) For the registration of productive equipment and regulation
of the installation of new productive equipment.
(g) For an increase or decrease in the number of Industry mem-
bers of the Code Authority and/or for a change in the method of
choosing such members.
Such recommendations when approved by the Administrator shall
have the same force and effect as other provisions of this Code.

ARTICLE X-TRADE PRACTICES

1. The following Trade Practice Rules heretofore adopted by the
Industry and approved by the Federal Trade Commission in 1929
(Including the notes of said Commission appended to several of
such rules), are hereby made a part of this Code, and failure to
comply with the provisions thereof shall be a violation of this Code.
RULE 1. lfte-rfer.nce with Confracts.-Including or attempting
to induce the breach of a contract between a competitor and his cus-
tomer during the term of such contract is an unfair method of
competition.
NOTE.-Whenever notice of the existence of a contract Is brought to the
attention of any person in any way, he shall promptly discontinue all efforts
which might induce a contracting party to break such contract.
RULE 2. Defamation of Competitors.-The defamation of a com-
petitor by words or acts which untruthfully call in question his busi-
ness integrity, his ability to perform his contracts, his credit stand-
ing, or the grade, quality, or count of his goods, is condemned as
unfair competition.
RULE 3. Threats of Suit for Patent or Trade-Mark Infringe-
mrent.-The circularization of threats of suit for infringement of
patent or trade mark among customers of a competitor, not made
in good faith, but for the purpose of harassing and intimidating
customers, is an unfair trade practice. The owner of a patent or








trade mark should, in fairness, deal directly with the alleged original
infringer rather than attempt to intimidate his customers.
RULE 4. False Bean.ding.-The certification of corrugated and
solid fiber boxes as complying fully with the published rules of the
carriers, when in fact such is not the case, misleads the buyer,
deceives the consumer, and is condemned as unfair competition.
NoTE.--The rules of the carrier relating to fiber-box specifications
are contained in the following tariffs published under authority of
the Interstate Commerce Commission:
Consolidated Freight Classification No. 5:
I.C.C. O.C. 49 (Official).
I.C.C. 18 (Western).
I.C.C. 23 (Southern).
Official Express Classification No. 30 (I.C.C. 32O0).
Agent B. W. Dunn's Tariff No. 1 (I.C.C.. No. 1).
These rules require that solid-fiber and corrugated boxes used in
interstate commerce must comply with certain tests and specifications
as prescribed in the published schedules of the carriers. They fur-
ther require that all such boxes used in interstate commerce bear
the certification of the box maker reciting that the box in question
complies with such rules. It is in the interest of this industry and of
the consuming public that these published rules be strictly complied
with.
RULE 5. False Certifflcation.-The certification of corrugated and
solid fiber boxes, as required by the published schedules of the car-
riers, by others than the box makers who actually made the boxes,
deceives the carriers and the consuming public as to the name of the
actual maker of the box, and is condemned as unfair competition.
RULE 6. Underbidding by Offering Inferior Products.-The mis-
representation of paperboard or boxes in respect. to size, style, caliper,
bursting strength, substance, or quality is condemned as unfair com-
petition.
NorT.-Producers asked to submit on furnished samples or on definite speci-
fication sometimes submit bids on inferior saninles or inferior '-pfieific.tions,
and at the same time lead the prospective purchaser to believe that the product
which they propose to furnish is equal to the submitted sample or equal to the
box or material described in the specifications.
RULE 7. Sales without M ..tuality.-Contracts of sale which permit
the buyer to cancel or provide for a reduced price in the event of a
market decline and which do not permit the seller to cancel or pro-
vide for an enhanced price in the event of a market rise are lacking
in mutuality and tend to induce controversy and breach of contract,
and are therefore condemned as unfair competition.
RULE 8. Dumping in Remiote Markets.-The practice of certain
manufacturers and sellers of shipping quantities of merchandise into
territories outside their normal territories, and of selling such mer-
chandise below the general market prevailing in such other territories
into which shipments are made, seriously tends to demoralize the
market within the territories into which shipments are made, disrupts
normal competitive conditions throughout the entire industry, and is
condemned as an unfair trade practice.
RULE 9. Over Runs and Under Runs.-The delivery of over runs
of paper board or boxes free of charge, or at a concession in price,




UNIVERSITY OF FLORIDA


14 3 1262 08336 447 0

results in price discrimination as between customers, and is con- ;
demned as unfair competition.
Norr.-In the practical operation of a paperboard mill or box plant it Is
economically impossible to fill an order for any specific quantity of paperboard
or boxes without there being some over runs or under runs. For this reason
it is the established custom of the trade to permit a reasonable variation either
way in making actual deliveries, the customer paying for the quantity actually
delivered, whether reasonably more or less than the quantity specified in the
contract.
RULE 10. Free Warehousing.-It is the judgment of this industry
that all quoted prices should be on the basis of delivery upon comple-
tion of manufacture. If the buyer requests a postponement of the
shipment beyond the date originally specified, a separate charge shall
be made to cover the full cost of warehousing the goods. Any viola-
tion of this rule results in price discrimination as between customers,
and is condemned as unfair competition.

ARTICLE XI-GENERAL PROVISIONS

1. If any member is also a member of another industry, the pro-
visions of this Code shall apply to and affect only that part of his
business which is included in this industry.
2. Any work or process incidental to, and carried on by a member
at his plant as a part of the manufacture of any product of the
industry, shall be regarded as a part of this industry.
3. The provisions of this Code shall apply to those Members who
manufacture the products of the industry for their own consumption
as well as to those who manufacture for sale.
4. Such of the provisions of this Code as are not required to be
included therein by the Act may, with the approval of the President
of the United States, be modified and eliminated as changes in cir-
cumstances or experience may indicate.
5. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
visions of Section 10 (b) of the Act, from time to time to cancel or
modify any order, approval, license, rule, or regulation, issued under
Title I of said Act, and specifically, but without limitation, to the
right of the President to cancel or modify his approval of such code
or any conditions imposed by him upon his approval thereof.
6. This Code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
Approved Code No. 245.
Registry No. 406-1-0S.