NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
FOR THE '
GUMMED LABEL AND
EMBOSSED SEAL INDUSTRY
AS APPROVED ON FEBRUARY 17, 1934
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Approved Code No. 294
Registry No. 404-09
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., innd by district offices of the Bureau of
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Approved Code No. 294
CODE OF FAIR COMPETITION
GUMMED LABEL AND EMBOSSED SEAL
As Approved on February 17, 1934
APPROVING CODE OF FAIR COMPETITION FOR TIIE GUMMED LABEL AND
EMBOSSED SEAL INDUSTRY
An application having been duly made pursuant to anil in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933. for approval of a Code of
Fair Compettition for the Gummed Label and Embossed Seal In-
dustry, 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 Order of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find that said Code complies in all respects with the
pertinent provisions and will promote the policy and purposes of said
Title of said Act; and do hereby order that said Code of Fair Com-
petition be and it is hereby approved; provided, however, 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 conditions 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,
Administrator for Industrial Recovery.
GEO. L. BERRY,
Febirary 17, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report of the hearing on the Code of Fair Competi-
tion for the Gummed Label and Embossed Seal Industry, conducted
in Washington on October 18, 1933, in accordance with the provisions
of Title I of the National Industrial Recovery Act.
HOURS AND WAGES
This Code provides a 40-hour week for factory workers with a
weekly tolerance of eight hours to be paid for as overtime. The
usual exceptions are made in regard to non-productive employees.
Office employees are limited to an average of 40 hours per week
over an eight week period.
The minimum wage rate in the North for hourly paid employees is
404 per hour for males and 350 per hour for females. In the South
the minimum wage rate for hourly paid employees is 35# per hour
for males and 30( per hour for females. Office employees will re-
ceive a minimum wage of $16.00 per week in the North and $14.00
per week in the South.
OPEN PRICE PLAN
An open price plan of selling is provided, and selling below cost,
except to meet competition, is prohibited.
Provision is made for furnishing the Administrator with such
statistical data as he may require.
ECONOMIC EFFECT OF THE CODE
The Industry employed in 1929 approximately 1,300 persons. Al-
though the number of plants increased by 15 between 1928 and 1932
the number of workers in July 1933 had decreased to a probable
1,200 who worked an average of 47 hours per week as of the week
ending July 15. The effect of the Code will be to employ about 100
From figures submitted by 18 plants in the Industry approximately
32% of the male workers and 35% of the female workers received
less than the proposed wages during the week ending July 15, 1933.
The total increase in the payrolls of the Industry as a result of the
Code will be slightly more than 10%.
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
proceedings in this matter;
I find that:
(a) Said Code is well designed to promote tie policies and
purposes of Title I of the National Industrial Recovery Act, includ-
ing removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision. by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and m ricul-
tural products through increasing purchasing power. by reitdcing
and relieving unemployment, by improving standardss of labor, and
by otherwise rehabilitating industry.
(b) Said Industry normally employs not more tlan 51.100
employees; and is not classified by me as a major indlutry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicant a-,sociation
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
For these reasons this Code has been approved.
HUGH S. JOHNSON,
A tdmini t/tor.
FEBRUARY 17, 1934.
CODE OF FAIR COMPETITION FOR THE GUMMED
LABEL AND EMBOSSED SEAL 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.
The following words are used in this Code with the meaning herein
"Industry "-The manufacture and processing of gummed labels
and embossed seals.
"Member "-A natural person, partnership, corporation, associa-
tion, trust, trustee, trustee in bankruptcy, receiver, or other form of
enterprise, engaged in such Industry.
"Act "-Title I of the National Industrial Recovery Act.
"Administrator "-The Administrator for Industrial Recovery
under Title I in the Act.
ARTICLE II-ORGANIZATION AND ADMINISTRATION
1. The members of the Executive Committee of the Gummed
Label and Embossed Seal Association, together with such other per-
son or persons as the Administrator may designate, are hereby con-
stituted the Code Authority of the Industry. The members of the
Code Authority designated by the Administrator shall have no vote
and shall serve without compensation from the Industry.
2. The said Association shall impose no inequitable restrictions
on membership and shall file with the Administrator certified copies
of any amendments of its By-Laws relating to eligibility or admis-
sion to membership in said Association, or relating to the method
of selection of the members of such Executive Committee, which said
Association may hereafter adopt.
3. The Administrator may at any time prescribe a different method
for selecting the Industry members of the Code Authority, and
thereafter such members shall be chosen in the manner so prescribed.
4. The Code Authority is charged generally with the duty of
administering this Code. If the Administrator shall determine that
any action of the Code Authority, or any agency thereof, may be
unfair or unjust or contrary to the public interest, the Administra-
tor may require that such action be suspended to afford an opportu-
nity for investigation of the merits of such action and further con-
sideration by the Code Authority or agency pending final action
which shall not. be effective unless the Administrator approves or
unless he shall fail to disapprove after thirty days notice to him of
intention to proceed with such action in its original or modified
5. 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 the Industry who accept the benefit. of
the services of the Code Authority or otherwise assent to this Code.
6. 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.
7. The Code Authority is hereby constituted the agency to en-
deavor to effect, by arbitral proceedings or otherwise, adjustments of
contracts entered into by members of the Industry, where the costs of
executing such contracts are increased through the application of
the provisions of the Act or of the Code.
ARTICLE III-HouRS 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 OF WORKING HOURS
(a) Watchmen: Fifty-six (56) hours in any one week, but not
more than six (6) days in any seven (7) day period. Or fifty-six
(56) hours in any one week, but not more than eight (8) hours in
any one day.
(b) Chauffeurs, truckdrivers, and their helpers: One hundred
eighty (180) hours in any period of four (4) consecutive weeks, pro-
vided, however, that time worked in excess of nine (9) hours in
any one day or forty-five (45) hours in any one week shall be paid
for as not less than time and one-third.
(c) Engineers, firemen, electricians, filter plant employees, elec-
tric and hydro-electric operators: One hundred sixty-eight (168)
hours in any period of four (4) consecutive weeks, provided how-
ever, that time worked in excess of nine (9) hours in any one day
or forty-five (45) 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 r orn work connected with the opera-
tion of such plant, mill or factory: Eight (8) hours in any one day
and forty (40) hours in any one week, provided, however, that these
maximum limits may be exceeded for any reason at any time pro-
vided that all time worked in excess of the maximums prescribed
shall be paid for as not less than time and one-third, and provided,
further, that no employee shall be required or permitted to work
in excess of ten (10) hours in any one day or forty-eight (48) hours
in any one week.
(e) Employees regularly engaged in a managerial or executive
capacity and their personal secretaries, foremen and supervisors,
receiving thirty-five ($35.00) dollars or more per week, and out-side
salesmen : No limitation.
(f) All other employees: Forty-eight (48) hours in any one week
but not to exceed three hundred twenty (320) hours in any period
of eight (8) consecutive weeks.
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 in excess of the limitations prescribed in said schedule shall
be paid for as not less than time and one-third.
3. No employer shall knowingly permit any employee to work for
any time which, when totaled with that already performed with
another employer or employers in this Industry, exceeds the maximum
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 the territory
of the United States except the States named in sub-division (b)
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 and Texas.
Male labor, 35 cents per hour.
Female labor, 30 cents per hour.
2. The minimum rates of wages for all other employees shall be
(a) In the Northern zone, as defined in Section 1 hereof, $16.00
(b) In the Southern zone, as defined in said Section, $14.00 per
(c) Part-time employees covered by the provisions of this Section
shall be paid at the rate of not less than 400 per hour in the North
and 35 per hour in the South.
3. This Article establishes a minimum rate of pay which shall
apply irrespective of whether an employee is actually compensated
on time-rate, piece-work or other basis.
4. Female employees performing substantially the same work
as male employees, shall receive the same rate of pay as male em-
ployees. The Code Authority shall within ninety (90) days after
the effective date of this Code file with the Administrator a descrip-
tion of all occupations in the Industry in which both men and
women are employed.
5. 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.
6. Office boys and girls under 18 years of age, to the extent of no
more than 5% of the total number of employees described in Section
2 hereof, may be employed at a wage of not less than 80% of the
minimum prescribed by said Section, provided that at. least one such
office boy or girl may be employed by each member.
7. 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 ba-is. Each inember shall file
with the Code Authority a list of all such persons employed by him.
ARTICLE V-GENERAL LAnOR 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 em-
ployer shall be deemed to have complied with this provision as to
age if he shall have on file a certificate or permit duly signed by the
authority in such State empowered to issue employment or age cer-
tificates or permits, showing that the employee is of the required age.
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 condi-
tion of employment to join any company union or to refrain from
joining, organizing, or assisting a labor organization of his own
choosing. Employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
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. The Code Authority shall make a study of conditions in the
Industry to determine the feasibility of the adoption of a shorter
working week and shall, within 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.
8. The manufacture or partial manufacture of any product of
the Industry in homes shall be prohibited, provided however that
members of the Industry who are now employing home workers
shall have until May 1, 1934, to adjust their operations.
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 In-
dustry 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 members of the Industry who manufacture such products,
not less than thirty (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 which 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 pertain-
ing to a single order, a commitment for future delivery, or a con-
tract. All such original schedules shall become effective on the date
fixed by the Code Authority as provided in Section 2 hereof.
5. A revised schedule or schedules, or a. new schedule or schedules,
or a notice of withdrawal of a schedule previously filed, may be
filed by a member with the Code Authority at any time, provided,
however, that any member who withdraws a schedule without sub-
stituting 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 here-
under shall become effective five days after the date of filing, pro-
vided, 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 per-
tain 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 he may notify the Code Authority that he
adopts as his own the schedule of such other member. In the latter
event, he shall be deemed to have filed a revised schedule conforming
to the revised schedule of such other member.
7. No such schedule of prices and terms of sale filed by any member,
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, tlat 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
conditionss more favorable than stated in such price schedule. No
member, who shall have failed to file a price for any product for
which the open price plan is in effect, shall sell such product at a
lower price or on terms more favorable than the lowest price and
most favorable terms stated in any price schedule for such product
then on file.
9. The Code Authority shall furnish at cost to any non-member
requesting them, copies of any price schedules which have been filed
with it. Such price schedules shall be made available to non-mem-
bers 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 such Section.
11. Cost, for the purposes of this Article, shall be determined pur-
suant 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 Administrator.
12. For the purpose 6f 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
information in regard to any quotation, order, contract, or sale of
any product. of the Industry, including information as to specifica-
tions, quantities, price, conditions of storage, transportation or de-
livery, terms of billing, cash or trade discounts allowed and other
pertinent 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 of discontinued lines, damaged
SSee paragraph 2 of order approving this Code.
goods or seconds, in such manner, at such price and on such terms
and conditions as the Code Authority and the Administrator may
14. Nothing herein contained shall be construed to prevent the
fulfillment of a bona fide contract existing on the effective date of
ARTICLE VII-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, inventory
both raw and finished, number of employees, wage rates, employee
earnings, hours of work and other matters, as the Code Authority
or the Administrator 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, ac-
counts and records of such member by any disinterested accountant
or accountants or other qualified person or persons designated by the
2. Except as otherwise provided in the Act, or in this Code, all
statistics, data and information filed or required in accordance with
the provisions of this Code shall be confidential and the statistics,
data and information of one member shall not be revealed to another
member. No such data or information shall be published except 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. The Code Authority shall make such reports to the Adminis-
trator as he may from time to time require.
4. In addition to information required to be submitted to the Code
Authority there shall be furnished to Government Agencies such
statistical information as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act. Nothing con-
tained in this Code shall relieve any member of any existing obliga-
tions to furnish reports to any Government Agency.
1. No provision of this Code shall be so applied as to permit
monopolies or monopolistic practices, or to eliminate, oppress, or
discriminate against small enterprises.
1. The Code Authority may, from time to time, present to the
Administrator 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-
tices for the Industry and for the modification of its Trade Customs,
and the enforcement thereof.
(b) For the establishment of plans to equalize production with
demand, so that the interests of the Industry and the public may be
(c) For dealing with any other inequality that may arise to
endanger the stability of the Industry and of production and
(d) 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.
2. For the purpose of assisting the Code Autlhorities of the Paper
Manufacturing and 'or Converting Industries in the adjustment of
all labor disputes and labor complaints arising within such Indus-
tries, the Code Authority shall consider the advisability of creating
a Joint Industrial Relations Board for such Industries and shall
report its recommendations to the Administrator.
3. Recommendations made pursuant to Sections 1 and 2 hereof
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 are hereby constituted Trade Practi-es for the
Industry and failure to comply with the provisions thereof shall be
a violation of this Code.
(a) Members of the Industry shall not practice deception in
regard to that which is sold or its selling price by false or misleading
description, statement, record, or undisclosed consideration.
(b) Members shall refrain from dumping. exteiision of stated
credit and secret rebates.
(c) IMembers shall not willfully injure by falsely d-lfaingiiii a com-
petitor's goods, credit, or ability to perform hi, contracts.
(dc) Member., shall not willfully induce or attempt to induce the
breach of a competitor's contract.
(e) No member shall give, permit to be given, or directly offer to
give, anything of value for the purpose of influencing or rewarding
the action of any employee, agent or representative of another in
relation to the business of the employer of such employee, the prin-
cipal of such agent or the represented party, without, the knowl-
edge of such employer, principal or party. The foregoing pro-
visions shall not be construed to prohibit free and general distribu-
tion of articles commonly used for advertising except so far as such
articles are actually used for commercial bribery as herein defined.
(f) No member of the Industry shall ship goods on consignment,
except under circumstances to be defined by the Code Authority
where peculiar circumstances of the Industry require the practice.
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. Such of the provisions of this Code as are not-required to be
included therein by the Act, may, with the approval of the Admin-
istrator, be modified and eliminated as changes in circumstance or
experience may indicate.
4. 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 tune 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
this Code or any conditions imposed by him upon his approval
5. This Code shall become effective on the second Monday after
the date upon which it shall be approved by the President of the
Approved Code No. 294.
Registry No. -04-09.
UNIVERSITY OF FLORIDA
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