Code of fair competition for the envelope industry as approved on Jan. 23, 1934

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Material Information

Title:
Code of fair competition for the envelope industry as approved on Jan. 23, 1934
Physical Description:
p. 331-346 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Envelopes (Stationery)   ( lcsh )
Stationery trade -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
"Approved Code No. 220."
General Note:
"Registry No. 403-1-01."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004892138
oclc - 63654600
sobekcm - AA00006355_00001
System ID:
AA00006355:00001

Full Text



Approved Code No. 220


I .


Registry No. 403-1-01


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


ENVELOPE INDUSTRY


AS APPROVED ON JANUARY 23, 1934


WE DO OUR PART


UNIV. C
SI i


I


U.S. 1-' ,'.-"^', D"-'





UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


I
For sale by the Superintendent of Documents. Washington, D.C. - Price 5 cents


--


-- --C






















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 Buildine.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Cojumerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, 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. 220


CODE OF FAIR COMPETITION
FOR THE

ENVELOPE INDUSTRY

As Approved on January 23, 1934






ORDER
APPROVING CODE OF FAIR COMPETITION
FOR THE
ENVELOPE 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 Envelope Industry, and hearings having
been duly held thereon and the annexed report on -aid Code, contain-
ing 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 December
30, 1933, and otherwise; do hereby incorporate by reference said an-
nexed 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
Competition be and it is hereby approved.
HUGH S. JOHNSON,
Adininistfrator for Industrial Recovery.

Approval recommended:
GEORGE L. BERRY,
Division A dmiin istrator.
WASHINGTON, D.C.,
January 23, 1934.
(331)
33359--313-78--34













The PRESIDENT,
The White House.
SIR: This is a report of the hearing on the Code of Fair Com-
petition for the Envelope Industry, conducted in Washington on
October 10, 1933, in accordance with the provisions of Title I of
the National Industrial Recovery Act.

HuURS AND WAGES

The Code provides a standard 35-hour week for factory workers
with a weekly tolerance of five hours to be paid for as overtime.
The usual exceptions are made in regard to nonproductive employees.
Office employees are limited to an average of 40 hours per week over
a thirteen-week period.
The minimuii wage rate for hourly paid employees is 400 per
hour in the North and 370 in the South, and for office employees
$16.00 per week in the North and $15.00 in the South.

PLANT OPERATION

The productive capacity of the Industry exceeds the present de-
mand by about 50%. To keep production within reasonable bounds
a plant operation limit of 40 hours per week is provided. Excep-
tions are made in certain cases in order to permit small plants the
necessary flexibility in operation. The right is reserved to the
Administrator to modify, suspend, or remove all limitations on plant
operation at any time.

OTHER PROVISIONS

Provision is made for furnishing the Administrator with any
statistical data which he may require. An open price selling plan
is provided, and selling below cost, except to meet competition, is
prohibited.
ECONOMIC EFFECT OF THE CODE
The Industry employed about 11,600 persons at its peak in 1929.
The number employed in May 1933 was about 9,000, who worked
an average of 38 hours per week. The effect of the Code, without
increase in volume, will be to employ about 1,000 additional persons
which additional volume will further increase. Almost one fourth
of the employees in the North have been receiving less than 300 per
hour. The total increase in pay rolls as a result of the Code will
be about 26%.
(332)






333


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;
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 in-
dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and nmnage-
ment under adequate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of indi1iitries,
y 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
association is an industrial association truly representative of the
aforesaid Industry; and that said association imposes no inequitable
restrictions on admission to membership therein.
(d) The Code is not designed to and will not permit Imonopolies
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.
JANUARY 23, 1934.










CODE OF FAIR COMPETITION


FOR THE,
ENVELOPE 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 envelopes (except envelopes for
boxed papeteries and boxed stationery) from all materials except
transparent cellulose.
Member: A natural person, partnership, corporation, association,
trust, trustee, trustee in bankruptcy, or receiver engaged in such
Industry.
Productivec iich.inery: All machinery-used for performing any
process necessary to the manufacture of envelopes of any kind pro-
duced by this Industry.
Act: Title I of the National Industrial Recovery Act.
Administfrator: The National Industrial Recovery Administrator.

ARTICLE II-ORGANIZATION AND ADMINISTRATION

1. The members of the Executive Committee of the Envelope
Manufacturers Association of America, 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 act in an
advisory capacity and shall have no vote.
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 Executive Committee,
which such 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 under the sanction and with the approval
of the Administrator. All acts of the Code Authority shall be sub-
ject to review by the Administrator, and to suspension, modification,
t334)





335


or cancellation by him in any case in which he shall determine that
any such act violates the purposes of the National Industrial
Recovery Act.
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 such 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 may divide the country into geographical
divisions for the purpose of administering this Code. Different
divisions for different products of the Industry may be so created.

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
schedules:
SCHEDULE OF WORKING ; HOURS

(a) Watchmen including those watchmen who incidentally tend
fires: 112 hours in any period of two weeks and not more than 6 days
in any one week.
(b) Chauffeurs and truckmen: 192 hours in any period of four
consecutive weeks, provided, however, that time worked in excess
of 91', hours in any one day or 48 hours in any one week shall be
paid for as not less than time and one third.
(c) Engineers and firemen: 168 hours in any period of four con-
secutive weeks, provided, however, that time worked in excess of
9 hours in any one day or 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 work connected with the opera-
tion of such plant, mill, or factory: A basic work week of 35 hours
with a tolerance of 5 hours additional, provided, however, that time
worked in excess of 9 hours in any one day or 35 hours in any
one week shall be paid for as not less than time and one third.
(e) Executives and their personal secretaries and other employees
engaged in a supervisory capacity receiving $35.00 or more per
week and outside salesmen: No limitation.
(f) All other employees: An average of 40 hours per week in 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 break-downs 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,





336


3. No provision of this Article shall be so construed as to require
payment for the same time as time and one third more than once.
4. 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.
5. The manufacture or partial manufacture of any product of
this Industry in the home of a worker is prohibited.

ARTICLE IV-1VAGES
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, 40 cents per hour.
(b) In the Southern zone, which shall consist of the States of
Virginia, Tennesee, North Carolina, South Carolina, Georgia,
Florida, Alabama, Mississippi, and Louisiana, 37 cents per hour.
2. Pieceworkers shall be paid at rates which will yield a worker
for an hour's work not less than the minimum rate above prescribed.
3. The minimum rates of wages for all other employees except
commission salesmen shall be as follows:
(a) In the Northern zone, as defined in Section 1 hereof, $16.00
per week.
(b) In the Southern zone, as defined in said Section, $15.00 per
week.
4. The wage rates of all employees receiving more than the mini-
mum rates herein prescribed shall be reviewed and such adjust-
ments, if any, made therein as are equitable in the light of all the
circumstances, and within sixty (60). (lays 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.
5. Persons learning an occupation shall be paid not less than 80%
of the minimum prevailing wage for such occupation provided that
the number of such learners employed by any member of the Indus-
try shall not exceed 10% of the number of employees in such occu-
pation but shall not be limited to less than 2 persons, and that
learners shall not be employed as such for a period in excess of six
weeks, irrespective of whether they are employed by one or more
employers.
6. 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.
7. Office boys and girls under 18 years of age may be employed
at a wage of not less than 80% of the minimum prescribed by Section





337 .


3, hereof, provided that the number of persons paid as office boys
and girls by any member of the Industry shall not exceed 5% of
the number of employees designated in Section 3 hereof employed
by such member, but shall not be limited to less than 1 person.
ARTICLE V-GCENERAL 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 employer shall be deemed to have complied with this provision
as to age if he shall have on file a certificate or permit duly signed
by the authority in such State empowered to issue employment or
age certificates or permits showing that the employee is of the
required age.
2. Employees shall have the right to organize and bargain collec-
tively 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
employee 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.
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 specific projects by competent governmental authority acting in
accordance with law, or to terms of employment which are estab-
lished by labor agreements now in force, where either the wages are
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
industry to determine the feasibility of the adoption of a shorter
33359--313-78--34-2





338


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.

ARTICLE VI-PLANT OPERATION
1. Subject to the exceptions contained in Sections 2 and 3 hereof,
no member shall operate any manufacturing plant in excess of 40
hours per week averaged over a period beginning with the effective
date of this Code and ending on the 30th day of June 1934, and
thereafter over each successive period of six months beginning on
July first and January first of each year or more than 1,040 hours
in any such period of six months.
2. For the purposes of the foregoing Section, the operating time
of any unit of productive machinery in any plant shall be regarded
as the operating time of the entire plant, provided, however, that
the operating time of not more than one-third of the total number
of envelope folding machines in the plant, but not in any case more
than three envelope folding machines and/or their necessary com-
plementary equipment, on emergency work, as the same may be de-
fined by the Code Authority, shall not be counted as plant operating
time.
3. If, for a period of one year prior to the 16th day of June 1933
or for the entire period of time prior to such date that any plant
may have been in operation, such plant shall have been steadily
operated with one or more extra shifts, employing thereon not less
than one half the number of folding-machine operators employed
on the day shift, then said plant may continue to be operated with
such extra shift or shifts until May 1st, 1934.
4. The limitations on plant operation may be modified, suspended,
or removed by the Administrator at any time if he shall determine
that such limitations have reduced or will tend to reduce unduly the
supply of envelopes or are for any other reason contrary to public
interest.
ARTICLE VII-ACCOUNTING--SELLI N

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 Indus-
try 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 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





339


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 infcrlmiation neces-ary 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 becom':- 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 geographical divisions created as provided
in Section 7 of Article II hereof.
5. An original schedule, a revised schedule or schedules, or a new
schedule or schedules, or a notice of withdrawal of a schedule pre-
viously filed 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 sched-
ule 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
member, or in effect at any time, shall be such as to perl it the sale
of any product at less than the cost thereof to such member deter-
mined in the manner provided in Section 11 hereof, provided, how-
ever, 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 Indus-
try, shall sell such product for less than such price or upon terms
or conditions more favorable than stated in such price schedule.
No member, who shall have failed to file a price for any product





340


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 person con-
cerned, whether member or non-member, requesting them, copies of
any price schedules which have been filed with it. Such price sched-
ules shall be made available to non-members 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 purposes of this Article, shall be determined
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 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. Every member filing a schedule or notice hereunder shall de-
liver to the Code Authority without expense such number of copies
thereof as shall be necessary to enable the Code Authority to supply
one copy thereof to each member of the Industry and no such sched-
ule or notice shall be deemed to have been filed until such number
of copies shall have been received by the Code Authority.
13. The Code Authority may at any time suspend the open price
plan of selling either in its entirety or insofar as it applies to any
specified product or products of the Industry.
14. For the purpose of determining whether Sections 7, 8, 10 and
11 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.
15. Nothing herein contained shall be construed to prevent the
disposition of distress merchandise required to be sold to liquidate a
defunct or insolvent business in such manner at such price and such
terms and conditions as the Code Authority may approve.
16. Nothing herein contained shall be construed to prevent the
fulfillment of a bona fide contract existing on the effective date of
this Code. The Code Authority may require members of the Indus-
try to file with its designated agency and in such manner as it shall
prescribe such data as it may require in respect of contracts for
future deliveries existing on the effective date of this Code.

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





341


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
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 and accounts and records of such member by any disinterested
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 provisions of this Code hereof 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 for the publication currently to members of
such statistics of the Industry as the Code Authority may determine
to be necessary.
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 the Government Agencies
such statistical information as the Administrator may deem nece.-
sary for the purposes recited in Section 3 (a) of the Act.
ARTICLE IX-TRADE PRACTICES AND CUSTOMS

1. The following are hereby constituted the Trade Practices for
the Industry, and failure to comply with the provisions thereof shall
be a violation of the Code:
a. Inducing Breach of Contract.-The wilful interference by
any member, by any means or device whatsoever, with any existing
contract or order between a seller and a purchaser, in or about
the production, manufacture, transportation, purchase, or sale of
any product handled or service rendered by the industry, or the per-
formance of any contractual duty or service connected therewith,
such interference being for the purpose or with the effect of dis-
sipating, destroying, or appropriating, in whole or in part, the
patronage, property, or business of another member, is an unfair
trade practice.
b. Defamation of Competitor or Disparagement of his Goods.-
The defamation of a competitor by words or acts, imputing to him
dishonorable conduct, inability to perform contracts, or questionable
credit standing, or the false disparagement of the substance, grade,
or quality of his goods, is an unfair trade practice.
c. Imitation of Trade-marks or Trade-names.-Imitation of the
trade-mark or trade-name of a competitor with the intent to deceive
buyers and consumers is an unfair trade practice.
d. Threats of Swit for Patent or Trade-mark inf-ingement.-
The dissemination of threats of suit, not made in good faith, for





342


infringement of patents or trade-marks, and for the purpose of
harassing and intimidating customers, prospective customers, or em-
ployees, is an unfair trade practice.
e. Fraud or M1isrepresentation.-The sale or offer for sale of any
product of the Industry with intent to deceive customers or pros-
pective customers as to the quantity, quality, substance, or size of
such product, is an unfair trade practice.
f. Misbranding.-The marking or branding of products of the In-
dustry for the purpose or with the effect of misleading or deceiving
purchasers or consumers with respect to the quantity, quality, grade,
or substance of the goods purchased, is an unfair trade practice.
g. Secret Rebates.-The payment or allowance of secret rebates,
refunds, credits, or unearned discounts, whether in the form of
money, or allowances for advertising, or sales promotion, or other-
wise, is an unfair trade practice.
h. Commercial Bribery.-To give, permit to be given, or directly
to offer to give, anything of value for the purpose of influencing or
rewarding the action of any employee, agent, or representative of
another in relation to the business of the employer of such employee,
the principal of such agent or the represented party, without the
knowledge of such employer, principal, or party, is an unfair trade
practice. The foregoing provisions shall not be construed to prohibit
free and general distribution of articles commonly used for adver-
tising except so far as such articles are actually used for commercial
bribery as hereinabove defined.
i. Prizes or Prem.iums.-The giving or offering to give prizes or
premiums in connection with the sale of envelopes is an unfair trade
practice.
j. 1Adhercle to Postal Regulations.-Intentional failure to con-
form to the United States Postal Laws and Regulations in the de-
sign of envelopes for mailing purposes and in the printing thereon
is an unfair trade practice.
k. Patent Protectiot.-No provision in this Code shall be construed
to prevent any member from seeking the redress to which he may be
entitled under the patent laws of the United States.
1. Seconds.-No seconds, job lots, misprints of envelopes shall be
sold or offered for sale.
m. False Billing.-No member of the Industry shall withhold
from or insert in any invoice any statement that makes it inaccurate
in any material particular.
n. Trade Custo7ms.-The sale or offering for sale of any products
of the Industry by any member of the Industry on any terms or
conditions which fail to conform to the provisions of the following
Code of Trade Customs is an unfair trade practice.
1. Confirmation of Orders.-Stenographic and clerical errors are
subject to correction. All quotations made and all orders and con-
tracts accepted by salesmen or selling agents are subject to the
approval of an officer or authorized executive of the seller company.
2. Date of Invoice.-
(a) Invoices shall be dated with day of shipment except as other-
wise provided in sections 17, 18, and 19 herein.





343


(b) Monthly statements rendered to a customer must include all
invoices rendered to said customer during the preceding calendar
month.
3. Cancellation.-Orders accepted by the seller may not be
countermanded except with his consent.
4. Return of Mcrchandisc.-No merchandise conforming to order
may be returned without the consent of the seller.
5. Unavoidable Delays in Delizvery.-The shipment or delivery of
all orders accepted shall be contingent on strikes, fires, accidents,
delays of carriers, and all other causes unavoidable or beyond the
seller's control.
6. Drawings and Plates.-All sketches, drawings, engravings, and
original cuts not specifically charged for in full are the property
of the envelope manufacturer.
7. Cutting Dies.-All cutting dies are the property of the envelope.
manufacturer.
8. Following Copy.-If copy must be followed exactly for style,
type, and arrangements, customers must furnish cut or plate; other-
wise the envelope manufacturer will match copy as nearly as may
be practicable.
9. Proof Errors.-When proof of printing has been sent for
O.K., the envelope manufacturer shall not be responsible for any
errors or mistakes customer fails to correct.
10. Variation of Paper.-The envelope manufacturer shall not
guarantee against unavoidable variations in shade, finish, strength,
weight, and cleanliness.
11. Discoloration Due to Giwn.-On account of the variety of
dyes and other materials used in the manufacture of paper, the
envelope manufacturer assumes no liability for discoloration due to
the application of adhesives on papers supplied by the customer or
specified by him.
12. Substance Basis.-
(a) All paper for conversion into envelopes shall be purchased
and sold only on the basis of substance numbers which represent the
pounds weight per ream, sheet size 17 x 22, 500-sheet count.
(b) The following substance numbers are established for
envelopes:
Grades of Paper: Basis 17 a S
Bonds and Writings ---------------------------- 13. 16,20,24. 28,32
Ledgers -----------------------------------------_ 20,24,28. 32, 36
White Wood and Rag -----------------------------_ 20,24,28,32
Manila--------------- --------------- 16, 20,24,28.32,40
Jute and Rope------_---------------- -------- 20,28,32,36,40
Kraft, Sulphite and Sulphate ..------..-----_ 13. 16,20,24,28,32,36,40
(c) When in-between weights are specified by the customer en-
velopes shall be sold at the price of the next higher substance number
established herein.
(d) Heavier weights than the foregoing and other grades than
those specified herein may be used to meet requirements of customers,
if sold on standardized mill-basis weights.
13. Overruns and Underruns on Manufacturing Orders.-On
orders to be manufactured, a variation in quantity either way, not
to exceed 10%, shall be accepted as a fulfillment of the order and
shall be paid for proportionally.





344


14. Overruns and Underruns on, Special Paper.-Where orders
require the special manufacture of paper, variation in quantity
above or below the amounts specified shall be allowed in accordance
with the trade custom as to variation of the material of the mill
from whom the paper is purchased, but such tolerance shall not be
less than 10%.
15. Making Envelopes from Paper Furnished by Customers.-The
following conditions shall apply to orders accepted for making
envelopes from paper furnished by the customer, whether such
paper is lithographed, printed, or unprinted.
(a) The envelope manufacturer shall assume no responsibility for
proper cutting of envelopes from sheets printed or lithographed
according to any layout or press-proof not approved by him.
(b) Such paper shall be well jogged and packed by the customer
and shall be free from damaged edges.
(c) The envelope manufacturer shall accept no responsibility for
quantity of such paper except on special agreement with the customer
and at his expense for counting.
(d) When such paper is received in poor condition, it shall not
be cut without specific instructions from the customer to proceed
with the work at his risk for spoilage.
(e) The envelope manufacturer shall not guarantee absolute con-
formity of location of printing or lithographing on envelopes cut
from paper printed or lithographed in the flat sheet.
16. Cash Discounts.-The following shall be the terms of dis-
count: To wholesale distributors, 3% for cash on the tenth day of
the month following date of shipment, or average of thirty days.
To retail distributors or consumers, 2% for cash payment not later
than the tenth day of the month following date of shipment. Cash
discounts shall not be allowed when trade acceptance or note settle-
ments are accepted in lieu of cash.
17. Split Billing and Split Delivery.-
(a) Orders for 99M envelopes or less of one size, one style, and if
printed, one printing copy (including permissible copy changes)
shall be billed complete on first delivery.
(b) If any part of the billing is to be deferred at customer's re-
quest after the first delivery on orders of more than 99M and not
exceeding 999M1 envelopes of one size, one style, and if printed one
printing copy (including permissible copy changes), 10% shall be
added to the price of the whole order.
(c) Billing on orders for lease than 500M envelopes shall be com-
pleted within six months from date of first delivery.
(d) Billing on orders for 500M envelopes or more shall be com-
pleted within one year from date of first delivery.
18. Split Delivery Only.-
(a) Orders for 24M envelopes or less of one size, one style, and if
printed, one printing copy (including permissible copy changes)
shall be shipped complete in one delivery.
(b) 1When more than one delivery is required on an order for
more than 24M and not exceeding 999M envelopes of one size, one
style, and if printed, one printing copy (including permissible copy
changes), 5% shall be added to the price of the whole order.





345


(c) Shipments on all orders shall be completed within twelve
months from date of first delivery.
19. Orders for Future Delivccy and Billiin.-On all orders for
100M or more envelopes on which, at the customer's request, delivery
and billing are deferred more than ninety days from date of place-
ment of order, the price shall be either 10% over list, or price pre-
vailing on date of shipment, at customer's option to be exercised
when order is placed.
20. Contract Items Excepited.-A contract for one million enve-
lopes or more of one size, one style, and if printed, one printing copy
(including permissible copy changes) or items constituting any part
of a contract for two million envelopes or more of a.,-orted sizes
and or styles, or otherwise, shall be excepted from the provisions
of sections 17, 18, and 19.
21.Envelopes with Adhesive Stamr ps Affixed, E.c:prlf d/.-OrIders
for envelopes on which adhesive postage stamps are to be affixed by
the seller shall be excepted from the provisions of sections 17, 18,
19 and 20 hereinahove.

ARTICLE X-RECOMMENDATI 'NS
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, or for the modi-
fication of rules, of trade practice and trade customs for the Industry,
and the enforcement thereof.
(b) For the prevention of unsound, unfair, or de.-trulctive com-
petitive practices or prices in the Industry.
(c) For the establishment of terms and conditions regarding sales
to dealers and distributors by members of the Industry.
2. Recommendations of the Code Authority, when approved by
the Administrator, shall have the same force and effect as other
provisions of this Code.

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. Articles VI, VII, IX, and such parts of Article VIII as are
unnecessary to assure compliance with other applicable provisions
of this C'ode shall not apply to the manufacturer of stamped en-
velopes and newspaper wrappers and the supply thereof to the
United States Post Office Department.
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 Admin-
istrator, be modified, or eliminated as changes in circumstances or
experience may indicate.






346

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 lmiall 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. 220.
Registry 403-1-01.
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UNIVERSITY OF FLORIDA
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