Code of fair competition for the gumming industry as approved on February 17, 1934

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Title:
Code of fair competition for the gumming industry as approved on February 17, 1934
Physical Description:
p. 140-150 : ; 24 cm.
Language:
English
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United States -- National Recovery Administration
Publisher:
Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

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Subjects / Keywords:
Gummed paper tape -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

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Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
"Approved Code No. 293."
General Note:
"Registry No. 404-08."

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Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004894157
oclc - 63654603
sobekcm - AA00006354_00001
System ID:
AA00006354:00001

Full Text




Approved Code No. 293 Registry No. 404-08


NATIONAL RECOVERY ADMINISTRATION





CODE OF FAIR COMPETITION

FOR THE


GUMMING INDUSTRY


AS APPROVED ON FEBRUARY 17, 1934


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


r ale by the Superintendent of Documents Washington D.. Price cents
For saie by the Superintendent of Doenmenis, Washington, D.C. - Price 5 cents


Approved Code No. 293


Registry No. 404-08























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
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Birmingham. Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo. N.Y.: Chamber of Commerce Building.
('larleston, S.C.: Chamber of Commerce Building.
c'hliano. Ill.: Suite 1706, 201 North Wells Street.
Clt\eeland, Ohio: Chamber of Commerce.
Dialln,. Tex.: Chnnlaer of Commerce Building.
Detriit, Mivh.: 801 First National Bank Building.
Houston. Tex.: Chamber of Commerce Building.
Indian;polis, Ind.: Chamber of Commerce Building.
.Iacksonville, 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.
MinIealipolis, Minn.: 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. 293


CODE OF FAIR COMPETITION
FOR THE

GUMMING INDUSTRY
As Approved on February 17, 1934


ORDER
APPROVING CODE OF FAIR COMPETTITON FOR THE GUMMING INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Gumming Industry, and hearings having
been duly held thereon and the annexed report on said Code, con-
taining findings with respect thereto, having been made and directed
to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
resident, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved; provided, how-
ever, that the provisions of Article 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 condi-
tions 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.
Approval recommended:
GEO. L. BERRY,
Division Administrator.
WASHINGTON, D.C.,
February 17, 1934.
41091---376-105--34 139













REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
Sri: This is a report of the hearing on the Code of Fair Competi-
tion for the Gunmming Industry, conducted in Washington on October
17, 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 niinimum wage rate in the North for hourly paid employees
is 40' per hour for males and 350 per hour for females. In the
South the minimum wage rate for hourly paid employees is 350 per
hour for males and 30 per hour for females. Office v'mployees
will receive 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.
OTHER PROVISIONS
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 about 800 persons and in May,
1933 about 814 persons. The average hours worked per week by
factory employees increased from 44 in the first half of 1933 to 53
in the week of July 9-15, 1933. The effect of the Code will be to
employ approximately 250 additional workers.
Because of the percentage of workers receiving less than the pro-
posed minimum wages the increase in the total payrolls of the
industry, as a result of the Code, will be about 6%.
FINDINGS
The Deputy Administrator in his final report to me on said Code
having found as herein set forth, and on the basis of all the proceed-
ings in this matter;
(140)






141


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 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 association
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,
Administrator.
FEBRUARY 17, 1934.












CODE OF FAIR COMPETITION FOR THE GUMMING
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 meaning
herein set forth:
"Industry "-The manufacture of gummed paper tapes and stay
papers and gummed cloth tapes, both plain and printed; gummed
flat papers and such special gummed paper and gummed cloth prod-
ucts as are natural affiliates.
"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-ORG;ANIZATION AND ADMINISTRATION
SECTION 1. The members of the Executive Committee of the
Gummed Industries Association, together with such other person or
persons 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 have no vote and
shall serve without compensation from the Industry.
SECTION 2. The said Association shall impose no inequitable re-
strictions on membership and shall file with the Administrator
certified copies of any amendments of its By-Laws relating to eligibil-
ity or admission 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.
SECTION 3. The Administrator may at any time prescribe a dif-
ferent method for selecting the Industry members of the Code
Authority, and thereafter, such members shall be chosen in the
manner so prescribed.
SECTION 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 oppor-
tunity for investigation of the merits of such action and further con-
sideration by the Code Authority or agency pending final action
(142)






143


which shall not be effective unless the Administrator approves or
unless he shall fail to disapprove after thirty (30) days notice to
him of intention to proceed with such action in its original or
modified form.
SECTION 5. The expenses of administering this Code shall be borne
pro rata, in accordance with a formula to be adopted by the Code
Authority, by all members of the Industry who accept the benefit of
the services of the Code Authority or otherwise assent to this Code.
SECTION 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.
SECTION 7. The Code Authority is hereby constituted the agency to
endeavor 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 this Code.
ARTICLE III-HOURS OF LABOR
SECTION 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) 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,
provided, 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, electric
and hydro-electric operators: One hundred and 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 or on work connected with the operation
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 maximum 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,






144


receiving thirty five dollars ($35.00) or more per week, and outside
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.
SECTION 2. NO limitation contained in said schedule shall apply to
employees of any class when engaged in emergency repairs or emer-
gency maintenance work occasioned by breakdowns or involving pro-
tection 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.
SECTION 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 permitted herein.

ARTICLE IV-WAGES
SECTION 1. The minimum rate of wage of any laborer, mechani-
cal worker or artisan employed in any plant, mill or factory, or on
work connected 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 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 Vir-
ginia, Tennessee, North Carolina, South Carolina, Georgia, Florida,
Alabamn, Mississippi, Louisiana, Arkansas and Texas:
Male labor, 35 cents per hour.
Female labor, 30 cents per hour.
SECTION 2. The minimum rate of wage 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.
(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 354 per hour in the South.
SECTION 3. This Article establishes a minimum rate of pay which
shall apply irrespective of whether an employee is actually compen-
sated on a time rate, piece work, or other basis.
SECTION 4. Female employees performing substantially the same
work as male employees, shall receive the same rate of pay as male
employees. 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.
SECTION 5. The wage rates of all employees receiving more than
the minimum rates herein prescribed shall be reviewed and such
adjustments, if any, made therein as are equitable in the light of all






145


the circumstances, 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.
SECTION 6. Office boys and girls under eighteen (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.
SECTION 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 minimuni prescribed by this
Code provided the State Authority or other agency designated by
the United States Department of Labor shall have issued a certifi-
cate authorizing his employment on such basis. Each member shall
file with the Code Authority a list of all such persons employed by
him. The provision of this Section requiring a certificate of author-
ity shall not become effective until sixty (60) days after the effective
date of this Code.

ARTICLE V--: NER.\L LABOR PROVISIONS
SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry. No person under eighteen (18) years of
age shall be employed at operations or occupations which are hazard-
ous in nature or dangerous to health. The Code Authority shall
submit to the Administrator within sixty (60) days after the effec-
tive date of this Code a list of such operations and 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 employ-
ment or age certificates or permits, showing that. the employee is of
the required age.
SECTION 2. Employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection. No em-
ployee and no one seeking employment shall be required as a con-
dition 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.
SECTION 3. No provision in this Code shall supersede any State or
Federal law which imposes on employers more stringent require-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general working conditions or insurance or fire
protection, than are imposed by this Code.
SECTION 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.






146


SECTION 5. All employers shall post copies of Articles III, IV and
V of this Code in conspicuous places accessible to employees.
SECTION 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 submitted by the Code Authority to the Administrator within'
six (6) months after the effective date of this Code.
SECTION 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 Ad-
ministrator. The Code Authority shall also submit to the Admin-
istrator, within six (6) months after the effective date of this Code,
a plan for the stabilization and regularization of employment.
SECTION 8. The manufacture or partial manufacture of any pro-
duct of the Industry in homes shall be prohibited.

ARTICLE VI-ACCOUNTINGC--SELLING
SECTION 1. The Code Authority shall, as soon as practicable, form-
ulate a standard method of accounting and costing for the Industry
and submit the same to the Administrator. Any such method shall
provide means for determining the price at which paper shall be
charged to the converting division of a combined paper manufactur-
ing and converting plant. When such method shall have been ap-
proved by the Administrator, every member shall use an accounting
and costing system which conforms to the principles of, and is at
least as detailed and complete as, such standard method.
SECTION 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 members of the Industry who manufacture such products
not less than thirty (30) days prior to the date so fixed.
SECTION 3. At least ten (10) 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.
SECTION 4. All such schedules shall be in such form as the Code
Authority shall prescribe and shall contain all information neces-
sary 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. All such original schedules shall become
effective on the date fixed by the Code Authority as provided in
Section 2 hereof.
SECTION 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, pro-
vided, however, that any member who withdraws a schedule without
substituting a new schedule therefore shall be deemed to have filed a






147


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 (5) 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.
SECTION 6. The Code Authority shall promptly supply all mem-
bers 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 infor-
mation 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.
SECTION 7. No such schedule of prices and terms of sale filed by
any member, 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.
SECTION 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 conditions more favorable than stated in such price sched-
ule. No member, who shall have failed to file a price for any prod-
uct, 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 prod-
nct then on file.
SECTION 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-members at the same time that they are sent to members.1
SECTION 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.
SECTION 11. Cost., for the purposes of this Article, .shall be deter-
mined pursuant to the method of accounting and costing prescribed
as provided in Section 1 hereof as soon as such method is adopted
and approved, and theretofore pursuant to the method employed
SSee paragraph 2 of order approving this Code.






148


by such member subject to such preliminary rules as the Code Au-
thority shall from time to time prescribe with the approval of the
Administrator.
SECTION 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 information 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 pertinent facts relating to stich quotation, contract or sale.
SECTION 13. Nothing herein contained shall be construed to pre-
vent the disposition of distress merchandise required to be sold to
liquidate a defunct or insolvent business or of discontinued lines,
damaged goods or seconds, in such manner, at such price and on
such terms and conditions as the Code Authority and the Adminis-
trator may approve.
SECTION 14. Nothing herein contained shall be construed to pre-
vent the fulfillment of a bona fide contract existing on the effective
date of this Code.

ARTICLE VII-REPORTS AND STATISTICS
SECTION 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 sub-
ject to checking for the purpose of verification by an examination
of the books, accounts and records of such member by any disin-
terested accountant or accountants or other qualified person or
persons designated by the Code Authority.
SECTION 2. Except as otherwise provided in the Act, or in this
Code, all statistics, data and information filed or required in ac-
cordance 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 de-
termine for the currect publication of Industry statistics to members.
SECTION 3. The Code Authority shall make such reports to the
Administrator as he may from time to time require.
SECTION 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 contained in this Code shall relieve any member of any
existing obligations to furnish reports to any Government Agency.






149


ARTICLE VIII-AMONOPOLIES
SECTION 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.
ARTICLE I X-RECOMMENDATIONS
SECTION 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 albng 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 interest. of the Industry and the public may be
properly served.
(c) For dealing with any other inequality that may arise to
endanger the stability of the Industry and of production and
em ployment.
(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.
SECTION 2. For the purpose of assisting the Code Authorities of
the Paper Manufacturing andi'or Converting rIndustries in the
adjustment of all labor disputes and labor complaints arising within
such Industries, 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.
SECTION 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
SECTION 1. The following are hereby constituted Trade Practices
for the Industry and failure to comply with the provisions thereof
.-hall 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 mislead-
ing description, statement, record, or undisclosed consideration.
(b) Members shall refrain from dumping, extension of stated
credit and secret rebates.
(c) Members shall not wilfully injure by falsely defamiing a
competitor's goods, credit, or ability to perform his contracts.
(d) Members shall not wilfully induce or attempts 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 re-
lation to the business of the employer of such employee, the principal
of such agent or the represented party, without the knowledge of
such employer, principal or party. The foregoing provisions shall






150


not be construed to prohibit free and general distribution of articles
commonly used for advertising except so far as such articles are
actually used for commercial bribery as herein 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
SECTION 1. If any member is also a member of another Industry,
the provisions of this Code shall apply to and affect only that part
of his business which is included in this Industry.
SECTION 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.
SECTION 3. Such of the provisions of this Code as are not required
to be included therein by the Act, may, with the approval of the
Administrator be modified and eliminated as changes in circum-
stances or experience may indicate.
SECTION 4. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of Section 10 (b) of the Act, from time to time to cancel
or modify any order, approval, license, rule or regulation, issued
under 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 thereof.
SECTION 5. 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. 293.
Registry No. 404-08.







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