Code of fair competition for the folding paper box industry as approved on December 30, 1933 by President Roosevelt

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Title:
Code of fair competition for the folding paper box industry as approved on December 30, 1933 by President Roosevelt
Portion of title:
Folding paper box industry
Physical Description:
p. 591-603 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Paper box industry -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
"Registry No. 406-1-09."
General Note:
"Approved Code No. 193."
General Note:
At head of title: National Recovery Administration.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004920796
oclc - 63654638
sobekcm - AA00006362_00001
System ID:
AA00006362:00001

Full Text


Approved Code No. 193 Registry No. 406-1-09


NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION

FOR THE

FOLDING PAPER BOX

INDUSTRY

AS APPROVED ON DECEMBER 30, 1933
BY
PRESIDENT ROOSEVELT




R
MEMBER


U.S.

WE DO UR PART
A-- -





1. Executive Order
2. Letter of Transmittal
3. Code





UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934

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























This publication is for sale by the Stuperintendent 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, Tes.: Chamber of Commerce Building.
Detroit. Mich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis. Ind.: Chamber of Commerce Building.
Jacksonville. Fin.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville. Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, 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.: 933 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 Building.












Approved Code No. 193


CODE OF FAIR COMPETITION
FOR THE

FOLDING PAPER BOX INDUSTRY

As Approved on December 30, 1933
BY
PRESIDENT ROOSEVELT






Executive Order

An application having been duly iadein, pusiintt to and in full
compliance with the provision, of Title I of the National Industrial
Recovery Act, approved June 16, 11.33, for my approval of a Code of
Fair Competition for the Folding Paper Box Industry, and hearings
having been held thereon and the Administrator having rendered his
report containing an analysis of the said Code of Fair Competition
together with his recommendations and findings with respect thereto,
and the Administrator having found that the said Code of Fair
Competition complies in all respects with the pertinent provisions of
Title I of said Act, and that the requirements of clauses (1) and (2)
of subsection (a) of Section 3 of the said Act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator, and do order that the said Code of
Fair Competition be, and it is hereby, approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON,
Admin istrator.
'Tr WI WHITE HOUS-E,
December 30, 1933.


20279"--290-109--34


(591)












DECEMBER 20, 1933.
The PRESIDENT,
The White House.
SIR: This is a report of the hearing on the Code of Fair Competi-
tion for the Folding Paper Box Industry, conducted in Washington
on October 26, 1933, in accordance with the provisions of Title I
of the National Industrial Recovery Act.

HOURS AND WAGES

The Code provides a forty-hour week for factory workers, plus
additional time for machine cleaning and plant operation work
to be paid for as overtime. For office employees the Code provides
forty hours per week averaged over thirteen weeks, but not more
than forty-eight hours in any one week. Slightly longer hours are
specified for additional nonproductive employees.
The minimum wage rates specified are 40c per hour in the North
and 35 per hour in the South for male factory workers, with a 5
differential forwomen in each case. It is provided that women doing
the same work as men shall receive the same pay. Office employees
are to be paid a minimum of $16.00 a week in the North and $14.00
in the South.
Exemption from the minimum rates is provided only for office
boys and girls and handicapped workers. Home work is prohibited,
and the usual provisions for safeguarding employees are included.

OTHEn PROVISIONS

The Code provides detailed regulations for accounting and selling,
to meet the particular necessities of this industry. Provision for
reports and recommendations is made, and certain unfair Trade
Practices are prohibited.

ECONOMIC EFFECT OF TITE CODE

There are about 370 firms engaged in the manufacture of folding
boxes, employing approximately 15,500 persons. Since 1929, produc-
tion in this industry has fallen off 15%. In the same period dollar
volume of sales decreased 3612 %, largely as a result of price wars.
Under the President's Reemployment Agreement 2,773 employees
were added to the industry's pay rolls, bringing the present total of
employment 2% above the 1929 level.
Owing partially to price decreases, wages have been severely de-
pressed in this industry. Under the President's Reemployment
Agreement, the average hourly wage rates were increased 22% for
male and 35.; for female nlbor in the North, and 41% for male and
50% for female labor in the South. The wage rates provided in the
(592)






593


Code will increase the present minimum rates by about 15,c. It is
estimated that the rates under the President's Reemployment Agree-
ment increased annual pay rolls by 11/2 million dollars, and that the
rates proposed in this Code will add an additional 2 million dollars
to present pay rolls.
FINDINGS

'The Administrator finds that:
(a) The Code as recommended complies in all respects with the
pertinent provisions of Title I of the Act, including, without limita-
tion, siibsection (a) of Section 7 and subsection (b) of Section 10
thereof; and that
(b) The applicant group imposes no inequitable res-trictions on
admiiSsion to membership therein and is truly representative of the
Folding Paper Box Industry; and that
(c) The Code, as recommended, is not designed to promote monop-
olies or to eliminate or oppress small enterprises and will not operate
to discriminate against them. and will tend to effectuate the policy
of Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be approved.
Respectfully submitted.
HunG S. JOHNSON,
A dm iistrator.













CODE OF FAIR COMPETITION


FOR THE
FOLDING PAPER BOX 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 and sale of containers (other than
fibre or corrugated shipping containers), which, or the integral parts
of multi-piece units of which, are made from a single piece of one
or more plies of box board and in the primary joints and 'or closures
of which the final outer surface of the blank is in direct contact
with the final inner surface of the blank, when assembled.
"Member."--A natural person partnership, corporation, associa-
tion, trust, trustee, trustee in bankruptcy, or receiver engaged in such
Industry.
"Act."-Title I of the National Industrial Recovery Act.
"Administrator."'-The National Industrial Recovery Adminis-
trator.
ARTICLE II-ORGANIZATION AND ADMINISTRATION

1. Eight persons engaged in the Industry to be elected by the
Board of Directors of the Folding Paper Box Association of
America, together with such other person or persons as the Admin-
istrator 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.
(a) At least one Industry member shall be a person who operates
a paper-board mill;
(b) At least one Industry member shall be a person who does
not own, operate, or have controlling affiliations with a paperboard
mill;
(c) At least one Industry member shall be a person who does not
own, operate, or have controlling affiliation with a paperboard mill,
and whose product is divided between folding paper boxes and other
paperboard products.
(594)






595


Industry members of the Code Authority shall serve for one
year, or until their successors are selected. A majority of such
members shall be persons who do not own or operate or have con-
trolling affiliations with paperboard mills, and whenever prac-
ticable such majority. shall be in the ratio of two to one.
2. The said Association shall file with the Admininistrator certi-
fied col)ies-of any amendments of its Bylaws relating to eligibility
or admlision to membership in such Association, or relating to the
method of selection of the imenbers of such Board of Directors,
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 ad-
ministering this Code under the sanction and with the approval of
the Administrator. All acts of the Code Authority shall be subject
to review by the Administrator and to suspension, modification, 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 for'Imula to be adopted by the Code Au-
thority, by all members of such Industry who accept the benefit of
the services of the Code Authority or otherwise assent to this Code.
G. The Code Authority shall have power to investigate alleged
violations of this Code and acts or courses of conduct by any mem-
ber 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.
8. The Code Authority may appoint a Divisional Committee for
each such geographical division and may delegate to such Com-
mittees such of its powers and duties as it shall deem necessary
for the proper administration of this Code under the sanction and
with the approval of the Code Authority.

ARTICLE III--Houns or LABOR

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

(a) Watchmen.-56 hours in any one week, but not more than 6
days in any 7-day period.
(b) Chauffeurs and trucbken.-192 hours in any period of 4 con-
secutive weeks; provided, however, that time worked in excess of 9
hours in any one day and 48 hours in any one week shall be paid for
as not less than time and one third.
(c) Engireers, firemen, and electr1'ic ti.-168 hours in any period
of 4 consecutive weeks; provided, however, that all time worked in







596


excess of 9 hours in any one day and 48 hours in any one week'shall
be paid for as 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.-8 hours in any one day and 40
hours in any one week, with the following exceptions:
First.-Additional time shall be allowed for machine cleaning and
maintenance and routine plant cleaning work, which cannot be done
while the machines are in operation; provided, that not more than
10% of the total number of such employees may be so engaged; and
provided, that all time in excess of 10 hours in any one day and 48
hours in any one week shall be paid for as not less than time and
one third.
Second.-Additional time, to the extent of not more than 8 hours
in any one week, shall be allowed for plant-operation work; provided,
however, that all time in excess of 8 hours in any one day and 40
hours in any one week shall be paid for as not less than time and
one third.
(e) E.recutives and their personal secretaries and other employees
engaged in a suppervisory capacity receiving $35.00 or more per week
and outside salesmen.-No limitation.
(f) All other em.ployees.-An average of 40 hours per week over
any period of 13 consecutive weeks, but not more than 48 hours in
any one week.
2. No limitation contained in said Schedule shall apply to em-
ployees of any class when engaged in emergency repairs or emergency
maintenance work occasioned by breakdowns or involving protection
of life or property; provided, however, that all time worked under
this section in excess of the limitations prescribed in said Schedule
shall be paid for as not less than time and one third.
3. No employee shall be permitted to work for two or more mem-
bers of the industry an aggregate number of hours in excess of the
number prescribed in said Schedule.

ARTICLE IV-WAGES

1. The iiliinium rate of wage of any laborer, mechanical worker,
or artisan employed in any plant, mill, or factory or on work con-
nected with the operation of any such plant, mill, or factory shall
be as follows:
(a) In the Northern zone, which shall consist of all of the terri-
tory of the United States except the states named in subdivision (b)
hereof:
Male labor, -10 cents pei' 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,
Alabama, Mississippi, Louisiana, Arkansas, and Texas:
Male labor, 35 cents per hour.
Fen:nle'labor, 30 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.






597


3. The minimum rates of wages for all other employees shall be as
follows:
(a) In the Northern zone, as defined in Section 1 hereof, $16.00
per week.
(b) In the Southern zone, as defined in said Section, $14.00 per
week.
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 90 days after the effective date of
this Code, file with the Administrator a description of all occupations
in the Industry in which both men and women are employed.
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 may be employed at
a wage of not less than 80% of the minimum prescribed by Section 3
hereof, provided that not more than 5%, but at least one, of the
employees of such class may be paid as office boys and girls.
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 designated by the United States De-
partment of Labor shall have issued a certificate authorizing his em-
ployment on such basis. Each member shall file with the Code Au-
thority a list of all such persons employed by him. The provision
of this Section requiring a certificate of authority shall not become
effective until sixty days after the effective date of this Code.

ARTICLE V---GENERAL LABOR PROVISIONS

1. No person under sixteen (16) years of age shall be employed in
the Industry. No person under eighteen (18) years of age shall be
employed at operations or occupations which are hazardous in na-
ture 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 cer-
tificates 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 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 la-






598


bor, 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, sani-
tary, or general working conditions or insurance or fire protection,
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
working week and shall, within three (3) months after the effective
date of this Code, make a report of its findings to the Administrator.
The Code Authority shall also submit to the Administrator
within six (6) months after the effective date of this Code, a plan
for the stabilization and regularization of employment.
9. The manufacture or partial manufacture of any product of
the In(ustry in the home of a worker shall be prohibited.
ARTICLE VI-ACCOUNTING---SELLI NG
1. The Code Authority shall, as soon as practicable, formulate
a standard method of accounting and costing for the industry and
submit the same to the Administrator. When it shall have been
approved by the Administrator, every member shall use an account-
ing and costing system which conforms to the principles of, and is
at least as detailed and complete as, such standard method.
2. The Code Authority may from time to time determine that an
open price plan of selling such product or products of the Industry
as it shall specify shall be put -into effect on such date as it shall
fix. Notice of such determination shall be announced to all .known
members of the Industry who manufacture such products not less
than 30 days prior to the date so fixed.
3. At least 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






599


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 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. Any such
schedule, or any price therein, may apply nationally or may be lim-
ited to one or more geographical divisions created as provided in
Section 7 of Article II 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 substituting a
new schedule therefore shall be deemed to have filed a schedule con-
forming 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 per-
tain to such product. Immediately upon receipt of information rela-
tive to the withdrawal of a price for any product, any member may
file notice of withdrawal of his own price for the same product effec-
tive as of the same date as the notice of withdrawal of .uch other
member. Immediately on receipt of information that a schedule
then on file has been revised, or that a new schedule has been filed
any member may file a revised schedule conforming as to price and
terms to the schedule of such other member, and effective on the
same date, or may notify the Code Authority that he adopts as his
own the schedule of such other member. In the latter event, he shall
be deemed to have filed a revised schedule conforming to the revised
schedule of such other member.
7. No such schedule of prices and terms of sale filed by any mem-
ber, or in effect at any time, shall be such as to permit the sale of any
product at less than the cost thereof to such member determined in
the manner provided in Section 11 hereof, provided, however, that
any member may by notice to the Code Authority, adopt as his own
a lower price filed by another designated member. Such adoption
shall become automatically void upon the withdrawal or revision
upward of the price adopted.
8. No member who shall have filed a price, or adopted as his own,
a price filed by another member for any product of the Industry,
shall sell such product for less than such price or upon terms or con-
ditions more favorable than stated in such price schedule. No mem-
ber, who shall have failed to file a price for any product for which
the open price plan is in effect, shall sell such product at a lower






600


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 nonmember
requesting them copies of any price schedules which have been filed
with it. Such price schedules shall be made available to nonmembers
at the same time that they are sent to members.
10. No member shall sell any product of the Industry for wVhich
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
Sect ion.
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
,hall, from time to time, prescribe with the approval of the Ad-
ministrator.
12. For the purpose of determining whether Sections 7 and 10
hereof have been complied with, every member shall upon the re-
quest 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 in such manner at such price and
such terms and conditions as the Code Authority may approve.
14. Nothing herein contained shall be construed to prevent the ful-
fillment of a bona fide contract existing on the effective date of this
Code.
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 and
accounts and records of such member by any disinterested account-
ant 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 shall be confidential and the statistics,






601


data, and information of one member shall not be revealed to an-
other member. No such data or information shall be published ex-
cept in combination with other similar data and in such a manner
as to avoid the disclosure of confidential information. The Code
Authority shall arrange in such manner as it may determine for the
current publication of industry statistics to members.
3. 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 neces-
sary for the purposes recited in Section 3 (a) of the Act.
ARTICLE VIII-REco1r3 EN D.TIONS

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-
tice for the Industry and for the codification of its trade customs
and the enforcement thereof.
(b) For the establishment of a standard method for determining
the current cost of any product of the Industry, and for a require-
ment that no Member shall sell any such product below such cost.
(c) For the establishment of terms and conditions regarding sales
to dealers and distributors by Members of the Industry.
(d) For the establishment of plans to equalize production with
demand, so that the interests of the Industry and the public may
be properly served.
(e) For dealing with any other inequality that may arise to er-
danger the stability of the Industry and of production and
employment.
(f) 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. The Code Authority shall as soon as practicable formulate a
plan both for determining fairly and equitably the price at which
paperboard produced by a member shall be included as a factor in
estimating the cost of folding boxes for the purpose of offering the
same for sale, and for cooperative action by the Code Authorities
of this Industry and of the Paperboarl Industry relative to the
purchase and sale of paperboard.
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 IX-TIRADE PRACTICES

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 this Code.






602


(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, deferred delivery, ex-
tension of stated credit, and secret rebates.
(c) Members shall not wilfully injure, by falsely defaming a
competitor's goods, credit, or ability to perform his contracts.
(d) Members shall not wilfully induce or attempt to induce the
breach of a competitor's contract.
(e) Members shall not entice away any employee of a competitor;
provided, however, that nothing herein contained shall prevent an
employee of one member from offering his services to a competitor,
nor prevent any member from employing the employee of another
member.
(f) Members of the Industry shall not accept contracts which do
not specify the (late of final delivery and in the event that final
delivery is not accepted on or before said date, shall thereafter charge
storage on such undelivered goods at the rate of 1% per month on
the sales price thereof.
(g) No Member shall accept an order at a firm price for shipment
later than six months after date of acceptance, except in particular
circumstances upon application to and approval by the Code
Authority.
(h) Uniform terms of sale shall be maintained by all Members in
the Industry, which shall be thirty (30) days net or 1% discount for
cash ten (10) days, except in particular circumstances upon appli-
cation to and approval by the Code Authority.
(i) 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
principal 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.

ARTICLE X-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 President
of the United States, be modified and eliminated as changes in cir-
cumstances 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 time to cancel or






603


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.
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.
Aplprolved Code No. 193.
Registry No. 406-1-09.
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