Code of fair competition for the paperboard industry


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Code of fair competition for the paperboard industry as approved on November 8, 1933 by President Roosevelt
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iv, 8 p. : ; 23 cm.
United States -- National Recovery Administration
U.S. G.P.O.
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Paperboard industry -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


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Cover title.
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At head of title: National Recovery Administration.
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"Registry no. 406-04."

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University of Florida
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Full Text

Registry No. 406-04







i i

L Executive Order
2. Letter of Transmittal
8. Text of Code


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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 my approval of a Code of
Fair Competition of the Paperboard 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 sub-
section (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 Na-
tional Industrial Recovery Act, approved June 16, 1933, and other-
wise, do adopt and approve the report, recommendations and findings
of the Administrator and do order that the said code of fair com-
petition be and it is hereby approved.
November 8, 1933.
Approval recommended:

19899"- 188-185- 33

NovEMalm 4, 1988.
The Whte House. -
SIR: This is a report of the hearing on the Code of Fair Competi-
tion for the Paperboard Manufacturing Industry in the United
States, conducted in Washington on September 14 1988, in accord-
ance with the provisions of Title I of the National Industrial Recov-
ery Act.
This industry is a part of the paper industry. The raw material
for the manufacture of paperboard is principally waste paper with
an admixture of a certain amount of fresh pulp. The process of
manufacture is identical with that of paper making, and working
conditions are the same in both industries.
The provisions of this Code relating to hours of labor and wages
are identical with those of the Codes for the Paper and Pulp Indus-
try and the Newsprint Industry.
Prior to 1929 the industry gave employment to about 25,000 per-
sons. On July 1, 1933, the number employed had fallen to about
19,000. Since that date, due in part to increased production, and in
part to the President's Reemployment Program, the number em-
ployed has been increased to about 22,500, and it is estimated that
when all manufacturers are subject to the Code, the 1929 figure of
25,000 will be reached.
Total pay rolls dropped by 39% during the period 1929 to 1938
but are now back to a point 21'% under those of 1929, in spite ot
the fact that production in the industry is considerably below the
1929 amount. Furthermore, it is improbable that production will
ever again reach the 1929 level, because of the fact that paperboard
has been displaced to a substantial extent by competitive materials
particularly Kraft Board.
Under these circumstances, I am of the opinion that the proposed
minimum wages and maximum hours effectuate the purposes of the
NationpJ Industrial Recovery Act, and that the Code is satisfactory
in all other respects.

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, subsection (a) of Section 7 and subsection (b) of Section 10
thereof; and that
(b) The applicant group imposes no inequitable restrictions on
admission to membership therein and is truly representative of the
Paperboard Industry; and that
(c) The Code as recommended is not designed to promote monopo-
lies 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.
A administrator.


To effectuate the policies of Title I of the National Industrial Re-
covery Act, the following is hereby established as a Code of Fair
Competition for the Paperboard Manufacturing Industry, and shall
be binding on every member thereof.
1. Where used in this Code, the following definitions shall apply:
Industry."-The manufacture of paperboard in the United States.
Paperboard."-All paper known as board, regardless of the raw
materials from which manufactured, having a thickness of 12/1000
or more of an inch; also of a lesser thickness known as lightweight
chip; and also of a lesser thickness manufactured for use as corru-
gating material and/or container board, regardless of the raw mate-
rials from which manufactured; and also specialties not classed as
paper, but classed as paperboard according to trade custom.
Notwithstanding the above definition, this code shall not operate on
or be binding upon the producers of the following products; namely:
Binders Board and all other wet machine Boards
Bristol Boards
Cardboard and Mill Blanks, coated or surface-treated subse-
quent to initial manufacture
Bogus Wrapping, Sheathing Paper, Indented Ham Wrapping
Sulphate Boards and Sulphate Corrugating Materials
Specialty Folding and Specialty Non-Folding Boards, includ-
ing all boards made from prime or fresh wood pulp, jute
stock, and rope stock.
"Member."-A natural person, partnership, association, corpora-
tion, trust, trustee, trustee in bankruptcy, or receiver engaged in such
"Act."-Title I of the National Industrial Recovery Act.
"Code."-This Code and all amendments thereto.
"Association."-The National Paperboard Association.
"Administration."-The National Industrial Recovery Administra-
"Administrator."-The National Industrial Recovery Admin-
1. The Executive Committee of the National Paperboard Associa-
tion is hereby designated as the Agency for administering the pro-
visions of this Code, and is hereby named and is hereinafter referred
to as "The Code Authority." 'The Administrator may designate

three persons as additional advisory members thereof; the member
or members so designated shall have no vote but in all other respects
shall be members of the said Code Authority.
2. The Industry is hereby divided into the following divisions:
1. Eastern Container-Board.
2. Western Container-Board.
3. Southern Container-Board.
4. Eastern Boxboard.
5. Western Boxboard.
6. Corrugating Materials.
7. Pacific Coast..
8. Lightweight Chipboard.
9. Other Board Products.
Any question as to the division into which any particular grade
class, or kind of paperboard, or any product of conversion of any of
them may fall, shall be determined by the Code Authority.
8. The expense of administering this Code shall be borne pro rata
by the members of the industry who accept the benefit of the Code
Authority or otherwise assent to this Code, in accordance with a
formula to be adopted by the Code Authority. The Association shall
be responsible for the payment of such expense.


1. The members of each division may adopt a divisional code in
the manner as hereinafter provided in Article IX, and may submit
the same subsequently through the Code Authority to the President
for his approval. Such divisional codes, when so approved, shall
have the same force and effect as to the divisions of the industry
affected thereby as this Code.
2. Such divisional codes shall be subordinate to this Code and shall
specifically recognize this Code as applicable to all members of the
industry engaged in manufacturing products falling within the divi-
sion for which such divisional code is submitted.
3. Pending action by the Code Authority, each division shall in-
clude such grades, classes, and kinds of paperboard as are generally
recognized by custom as falling within the classification indicated
by the name of such division.
4. Such divisional codes may contain such provisions relating to
said division as may be appropriate for inclusion in a Code of Fair
Competition under the Act, provided that no such code shall contain
any provision contrary to or inconsistent with the provisions of this

1. Employees in the industry shall not be required or permitted
to work hours in excess of the limits prescribed in the following

(a) Watchmen: Eight (8) hours in any one day an.d fifty-six (56)
hours in any one week.

(b) Chauffeurs, truckmen, switching crews, engineers, firemen and
electric and hydro-electric operators, and filter plant employees: One
hundred sixty-eight (168) hours in any period of four consecutive
weeks, but no more than ten (10) hours in any one day and forty-
eight (48) hours in any one week.
(c) Tour workers in continuous process operations: Eight (8)
hours in any one day and an average of forty (40) hours per week
in any period of thirteen (13) consecutive weeks; provided, however,
that additional hours may be worked:
(1) To avoid a shut-down due to the temporary absence of a relief
(2) n changing wires and machine clothing; and
(3) In clean-ups, wash-ups, and ordinary repairs and adjustments
in cases where a machine is shut down for a period of not less than
eight (8) consecutive hours.
(d) All other laborers, mechanical workers, or artisans employed
in any plant, mill, or factory or on work connected with the operation
of any such plant, mill, or factory: An average of not more than
forty (40) hours per week in any period of thirteen (13) consecutive
weeks, but not more than forty-eight (48) hours in any one week;
provided, however, that time worked in excess of eight (8) hours
in any one day shall be paid for at not less than time and one third.
(e) Executives and their personal secretaries and other employees
regularly engaged in a supervisory capacity, receiving thirty-five
($35) dollars or more per week, and outside salesmen: no limitation.
(f) All other employees: An average of forty (40) hours per week
in any calendar year and an average of not to exceed forty-eight (48)
hours per week in any period of thirteen (13) consecutive weeks.
Provided, however, that no limitation on hours of work contained
in said schedule shall apply to employees of any class when engaged
in emergency repairs or emergency maintenance work involving
breakdowns or protection of life or property.
2. At such intervals as the Code Authority shall prescribe, every
member shall report to the Code Authority:
(a) The number of man hours worked under subdivisions c (1),
c (2), and c (3) of said schedule and the ratio which said man hours
bear to the total number of man hours of labor under subdivision c;
(b) Shall furnish the Code Authority such information as it may
require in order to enable it to determine whether the limitations
contained in said schedule have been exceeded.
3. No employee shall be permitted to work for more than one
member of the Industry an aggregate number of hours in excess of
the number prescribed in said schedule.

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) Northern Zone, which shall consist of all of the territory of
the United States except the States named in subdivisions (b) and

(t). Male: Thirty-eight (88) cents per hour. Female: Thirty-
t ree (33) cents per hour.
(b) Central Zone, which shall consist of the States of Delaware,
Maryland, Virginia, West Virginia, Kentucky, Tennessee, and North
Carolina, and the District of Columbia. Male: Thirty-five (35)
cents per hour. Female: Thirty (30) cents per hour.
(c) Southern Zone, which shall consist of the States of South
Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Arkan-
sas, and Texas. Thirty (30) cents per hour.
Provided, however, that in case the rate per hour for any class of
labor was, on July 15, 1929, less than the minimum rate above speci-
fied for the same class of labor, then the minimum rate for such class
of labor shall be the rate paid on July 15, 1929, but in no event less
than ninety percent of the rate above specified.
2. The Code Authority shall obtain statistical data concerning the
effect of the above proviso on wage rates in the Industry and shall
within ninety (90) days after the effective date of this Code make a
report thereon to the Administrator.
3. Where a State law provides a higher minimum wage than is
provided in this Code, no person employed within such State shall
be paid a wage below that required by such State law.
4. Pieceworkers shall be paid at rates which will yield a worker
for an hour's work not less than the minimum rate prescribed.
5. The minimum rates of wages for all other employees except
commission salesmen shall be as follows: Not less than fifteen dol-
lars ($15.00) per week in any city of over 500,000 population, nor less
than fourteen dollars and fifty cents ($14.50) per week in any city
between 250,000 and 500,000 population nor less than fourteen dol-
lars ($14) per week in any city between 2,500 and 250,000 population,
nor less than twelve dollars ($12) per week in towns of less than
2,500 population.
6. The minimum wages hereby prescribed shall not in any way be
considered as a discrimination by reason of sex and where, in any
case, women do substantially the same work or perform substantially
the same duties under the same conditions as men they shall receive
the same rate of wages as men receive for doing such work or per-
forming such duties. The Code Authority shall prepare and file
with the Administrator ninety (90) days after the effective date of
this Code a description of all occupations in the industry in which
women are employed.
T. 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 ninety (90) 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.
8. A person whose earning capacity is limited because of physical
or mental defect, age, or other infirmity, may be employed on light
work at not less than eighty (80%) percent of the minimum wage
prescribed in Section 1 hereof, if the State Authority designated by
the United States Department of Labor shall have issued a certificate
authorizing the employment of such person on such basis, pro-

vided, however, that the total number of such employees in any one
plant shall not exceed three (8) percent of the total employees in
such plant. So much of this Section as requires the issuance of such
a certificate shall not take effect until sixty (60) days after the
effective date of this Code.

1. No person under sixteen (16) years of age shall be employed in
the industry nor anyone under eighteen (18) years of age at opera-
tions or occupations hazardous in nature or detrimental 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 occupa-
tions. In any State an employer shall be deemed to have complied
with this provision if he shall have on file a certificate or permit
duly issued by the authority in such State empowered to issue em-
ployment 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 em-
loyee and no one seeking employment shall be required as a condi-
tion of employment to join any company union or to refrain from
joining, organizing, or assisting a labor organization of his own
choosing. Employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
8. Labor agreements now in force between members and their
employees shall be affected only by such provisions of this Code
as may prescribe higher wages and shorter hours than are provided
for in such agreements.
4. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purpose of the
5. All employers shall post full copies of this Code in conspicuous
places accessible to employees.
6. 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.

1. The Code Authority shall, as soon as practicable, propose 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.

1. Each member shall prepare and file with the Code Authority
at such times and in such manner as it may prescribe statistics of
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 such other data or information as
the Code Authority or the Administrator may from time to time
require. Any or all information so furnished by any member shall
upon the approval of the Administrator 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,
data, and information of one member shall not be revealed to an-
other member. No such data or information shall be published
except in combination with other similar data and in such manner
as to avoid the disclosure of confidential information.
3. The Code Authority shall make to the Administrator such
reports as the Administrator 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.

1. The Code Authority and each division of manufacture created
in Article II shall have the riaht to submit to the Administrator
subordinate codes and/or amendments to this Code, in the manner
hereinafter set forth.
2. Each and every proposed divisional code or amendment to
this Code shall be filed by the proponents thereof with the Code
Authority and shall be submitted to the Administrator by the Code
3. The proponents shall select an Examiner and present his name
and address to the Code Authority at the same time the proposed
divisional code and/or amendments are filed with the Code
4. The Code Authority shall immediately transmit to each member
of record of the industry a copy of the proposed divisional code
or amendments to this Code.
5. Written objections may be filed with the Code Authority by
any member or group of members of the industry within fifteen
days after the date on which the Code Authority has mailed the
copies thereof to the members as above provided. Immediately
thereafter the Code Authority shall advise each objector the name of
every objector.
6. If no written objections are filed with the Code Authority
within said fifteen days' period, the Code Authority shall forthwith

present the proposed divisional code or the amendments to the
7. If written objections are filed:
(a) Within not less than ten days, nor more than fifteen days
thereafter the objector or objectors shall appoint an Examiner.
(b) The two Examiners so appointed shall select a third.
(c) Upon failure of the two Examiners to select the third within
ten days after appointment by the objector or objectors, the Code
Authority shall request the Chief Justice of the Supreme Court of
the District of Columbia to appoint the third Examiner.
(d) Hearings shall be held at such time and places as designated
by a majority of the Examiners. Reasonable notice thereof shall
be given to the parties interested by the Examiners.
(e) Findings of fact and opinion shall be filed with the Code
Authority by the Examiners within thirty days after the appoint-
ment of the third Examiner, which findings shall not be binding
upon either proponents or objectors. In case of disagreement among
the Examiners, both a majority and a minority finding may be filed.
(f)Within fifteen days after the date fixed for the filing of the
findings of the Examiners with the Code Authority, the Code Au-
thority shall file the divisional Code or amendment with the Admin-
istrator. A copy of the findings of the Examiners shall accompany
the filing of the divisional code or amendments if the same has
been received. If such finding has not been received by the Code
Authority, they shall certify this fact to the Administrator.
(g) Failure on the part of the proponents or the objectors to do
the things required above within the time limit provided shall be
considered as a waiver by the party so failing of his rights here-
under to require any subsequent step to be taken under the provisions
of this Paragraph '.
(h) The compensation of each of the first two Examiners ap-
pointed shall be paid by the persons appointing them. The compen-
sation of the third Examiner and the other expenses connected with
the procedure outlined in this Article shall be apportioned between
the proponents and the objector or objectors as may be provided by
the Examiners; provided, however, the Association shall pay aU
expenses and compensation incurred under this Article whenever the
Code Authority shall have proposed a divisional code or amendment
to this Code.
(i) All instruments herein required to be filed shall be addressed
to the Code Authority, in care of the Secretary of the National
Paperboard Association, at its main office.

1. If any member is also a member of another industry, the provi-
sions of this Code shall apply to and affect only that part of his
business which is included in this industry and if the products of
any member fall in more than one division of the industry the
provisions of any divisional code shall apply to and affect said
member only as to products falling in such division.
2. Any division may formulate a complaint to the President of
the United States, pursuant to the provisions of Subdivision (e) of


8 3 1262 08336 442 1
Section 3 of the Act, that any paperboard is being imported into
the United States in substantial quantities or in increasing ratio to
domestic production of any competitive paperboard, on such terms
or under such conditions as to render ineffective or seriously to
endanger the maintenance of this Code, or of any divisional code
subordinate hereto and deliver the same to the Code Authority, which
shall transmit such complaint to the President.
3. The Code Authority shall have power to investigate alleged
violations of this Code and acts or courses of conduct by any member
or division which are or appear to be, contrary to the policy of the
Act or which tend, or may tend, to render ineffective this Code or
any divisional code and to report the same with recommendations
to the Administrator.
4. 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 the industry.
5. The Code Authority shall make a study of conditions in the
industry to determine the feasibility of the adoption of a shorter
working day 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.
6. Such of the provisions of this Code or of any divisional 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 or
eliminated, as changes in circumstances or experience may indicate.
7. This Code and each divisional 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 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.
8. Proposed amendments to this Code or to divisional codes, duly
adopted by the organization concerned, in the manner provided in
Article IX above, may be presented by the Code Authority to the
President and when approved by him, such amendments shall become
a part of such code.
9. 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.