NATIONAL RECOVERY ADMIINISTRATION
CODE OF FAIR COMPETITION
CIGARETTE, SNUFF, CHEWING, AND
SMOKING TOBACCO MANUFACTURINGG
For saleby the Su~perintendent of Documents. Washington, D. C. - Price 5 cent
Approved Code No. 549
Registry No. 1615--31
AS APPROVED ON FEBRUARY 9, 1935
GOVERNMENT PRINTING OFFICE
This publiention 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 OFFCES OF THE DEPARTMENT OF COMMI~ERCE
Atlanta, Ga.: 504 Post Office Building.
Birminngham, Ala.: 257 Federal Building.
Boston, Mass: 1801 Customhouse.
Buffalo, N. Y.: Chamber of Commerce Building.
Charleston, 8. C.: Chamnber of Commerce Btuildi~ng.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chatmber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jack::onville, Fla.: Chamber of Commerce Building.
K~ansas Cit y, Mo.: '1028 Baltimnore Avenue.
Los Angeles Calif.: I163 South Broadway.
Louisville, Ky~.: 408 Federal Building.
M~emphis, Tenn.: 220 Federal Building.
M~ionnapolis, Mfinn.: 213 Federal Building.
N~ew Orleans, La.: Room 225-A, Customhouse.
New York, N. Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
SPhiladelphia, Pa.: 422 Commercial Trust Building.
Pittsb~urgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mlo.: .506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wbaah.: 809 Federal O~ffice Building.
Approved Code No. 549
COD)E: OF FAIR COMPETITION
CIGARETTE, SNUFF, CHEWING, AND SMOKING
TOBACCO MIANUFACI~ CTURPING INDUSTRY
As Approved on Fiebruary 9, 1935
CODE OF 1FAIR COMPETITION FOR THE CIGARETTE SNure, CHEWING,
ano SMOKING TOBACCO RIA NUFACTURNIG INDUSTRY
An application having been duly made, pursuant to and in; full
compliance with the provisions of Title I of the Njationll Industrial
Reco~veryT Act, approved June 16, 1933, for my approval of a Code of
Fair Competition for the Cigarette, Snuff, Chewing, and Sm~oking
Tobacco Manufacturinga I~ndustry; anld hienrinlgs having been duly
held thereon; anzd thne annexeld report on said Code, containing find-
ings with respect thereto, having beenl made and directed to me:
NOW, THEREFORE, I, Frankrlin D. Roosevelt, President of the
United States, pursuant to the. authority vested in me byr said Title
of said Act, anld otherwise, do hereby adopt and approve said report
and findings; incorporate th~e same herein by reference; find further
that the approval of said Code will be in the public interest; and
order that said Code of Fair Competition. be and it hereby is
a pprIo ed .
I further order that. the Division of Research and Planning of the
National Riecover~y Administration be and it hereby is directedl to
mnake a study of conditions in the Industry relating to wages and
hours of labor of employees to determine the extent of the contribu-
tion made by the Industry toward reemploymnent and increased pur-
chasing power, and submit its report thereon together with its ree-
omme~ndationsnsith~ respect thereto to the National Industrial Re-
covery Board as soon as practicable in order that said Board may,
after due notice and hlearinga, take such action in connection there-
with as it may deem necessary and proper to effectuate the purposes
of said Title of said Act.
FRANKRLIN D. ROOSEVELT.
Thle WarrE HOUSE,
February 9, 193~5.
LETTER OF TRANSMIITTAL
The WCthite! Ho~use.
SmE: This is a report on the Code of Fair Competition for the
Cigur Iette, Snuff, ChewTing, and Smnokinlg Tobacco Mannufacturin gr In-
dustry as r~evise~d after a public le~aringa conducted in Washington,,
D. C. onl August. 21, 1934, in accordance w~ith thle provisions of Title
I of the National Industrial Recovery Act.
THE INDUSTRY IN GENERAL
The Cigarette, Snuff, Chlewig2, a~nd Smoking Tobneco Industry,
as defined- by the Code, embraces aill establishments engaged in th~e
manufacture and sale by the manufacturer of all forms of cigarettes,
plug, twist, scrap, fine cut, snuff and smoking tobacco, andl all proc-
ess~ing of leaf tobnzco carr1iedl on in the course of such manufactur-
mng. The manufacture of cigarettes, smoking, c~hewingT tobacco andl
snultT is centered in tlhe hands of a few firms. It is estimated th~at
eight (8) companies prooduce over ninety-five per cent (959~) of the
e~igurettes mande; that four (4) of these companies produce about
eighty-five per cent (85%0) of the total. These eight (~8) companies
also produce the bulk of smoking and chewing tobacco. The mnanu-
facture of snuff is concentrated in the hands of about ~five (5) com-
panies. T~he number of establishmlents manufacturing tobacco prodc-
uc~ts has) beern dep~~pclrreaig The rate of rec~line of the number of
tobacco andc snuff manufacturers has nlot been so :rapid as that in
the Cigarette Indlustry. There! were~ two hundred and six (206)
establishments inl the Tobacco and Snuff Indcustry in 1953. The
number dliminishedl to one hundrled an-d twenty-ie(2)i 91
while in the Cigar~ette Indust~ry thle number o-fiv estabihmns has1
declined from sixty-one (61) in 1923 to fourteen (14) in 1931.
T~he manufacture of plug, twist and fine cut chewinga tobacco has
declinedl from two hundred and six mlillion(0,000)podsn
the year 1917 to seventy million ("70,000,000) p0,()ounds in on~ 19.Th
per capital conlsumpltion has been declining for the past fifteen (15)
years. Bec~u~se of its short duration andl easy accessibility, thle
cigarettes seems to be most suited to the national temperament. The
gradual decline of prejudice against the use of cigu rettes by men, and
more recently, by women, has made possible a wcide sp~readl adoption
of cigarlette smlokiing. The annual production of cigarettes increased
from eigh-t billion six hlundlred million (8,600,000,000i) in 1910 to one
hundred End t wenlty-four billion (124,000,000,000) in. 1930. The
trend was~ slightly downward through~ 1930 to 193--t~urning upward
a goin in 1933.
Cigarette, smnokingr and c-hewfing tobacco manufacturers are located
principanlly in thne South. This is probably due to the source of raw~
materials. In 1932 three (3) states, North Carolina, Vir~ginia, and'
K~entuckly, prodlc~ed ninety-three per cent (93lCo) of all cigarettes.
HOrGHS AND WAGES
Under the Code, emnployees are~ limited to forty (40) hours per
week and eighr~t (8) hours in any twent~y-four (24) hour period, with
ex-ceptions provided for manarigerial, executive and supervisory
employees who earn regularly not less than thirty-five dollars
($35.030) wPeekly, and outside salesmen.
Employees engaged in emergency maintenance and emergency
repair work and in the emergency handling of tobacco where delay
woullld cause damngre to the product, are permitted to work: in. excess
of the ma xinlum, provided that in such special cases time and a half
shall be paid in excess of the maximum.
Engineers, firemnen, receiving and shipping employees are per-
mitted to workr forty-four (44) hours in any wReek provided that time
and one-half (11/2) shall be paid after eight (8) hours in anly twenty-
four (24) hour period.
Emnployees working in assignments co-nnccted- with the handling
anld prizing~r of leaf tobacco during the leaf buying season shall be
p~ermit~ted to work forty-eight (48) hours per w-eek provided time
and one half (11/z) shall be paid for all hours workred in eseems; of
eight (8) hours in. any twFienty-four (24) hour period, and forty-four
(44) hours inl any one week.
Office' employees are limited to forty (40) hours per wveek with a
mlinimnumn of sixteen dollars ($16.00) per week.
W~Tatchmnen are limited to ten (10) hours in any twenty-four (24)
hour period and fifty-sixz (56) hours in any one (1) weerk, with a
minimum. rate of pay of eighteen dollars ($18.00) per week.
]F~emale employees, performing substantially the same work as male
emplloyees shall receive the same rate of pay as male employees.
The Code provides for equitable adjustments.
The Code establishes a minimum rate of pay of forty cents (40Sr)
per hour for employees engaged in the manufacture of cigarettes.
Thne Code establishes a minimum rate of pay of thirty7-five cents
(35y?) an hour for employees ellngaged~ in the manufacture of snuff
and smoklinga tobacco, or in the processing or handling of e~ignlette
tobacco, at any stage prior to the fabrication. of the product. Eml-
ployees engaged inl any part of the processing or manufacture of
plug, twist, scrap and fine cut chewing tobacco, including stemmingS,
shall be paid at the rate of not less than twentyy-five? cents (25&)
per hlour;. Employees engaged as searchers, pickers, cleaners, hnang-
ers, prizers, classes and hand stemme~rs in any branch of the In-
du~stry, other than the mnanufactulre of plug, twist, scrap and fine cut
chewing tobacco, shall be paid at a rate of not less than thirty
cents (.30r() an hour with a, tolerance of fiEt~een per cent (15$7.) for
hlandl stemmrers clnssedl as slow wo~kers~. The slow workers are to
work on the same per pound pIiece work basis and shall be paid at
not less than the rate of twenty-five cents (25Cc) per hour.
Machine sltemmers in any branch of the Industry, other than the
mnufneturectr l~ of plulg, twist, scrapnl and fine cuit chewrcingf tobacco, shall
be paid at a, rate of not less than th~irt~y-five cents (35 ~) an hour.
The Code establishles minimum rates of pay ilrresp~ective of whether
the employees are compensatedc on a time rate, piece rate or other
The Code prohibits home worki in the Induzstry.
EC'ONOIIT C C'OiNDTIONS'
Thne Industr~y has been operlatingS under the P'resident's REeemnploy-
ment Agreement since August, 1933. As a result of this Agreement,
whichh the Industry considered a Code), it is estimated that employ-
ment increased about seven per cent (Ty), anld wages approximately
fifteen per cent (15%") at that time. The Code contains the same
maximum hours as the Agreement, and will not result in any appre-
ciable increase in emnploymient; however, it is estimated that the
minimum wages established by the Code will result in an increase of
from twenty per cent (20%) to t~wenty-five per cent (25Sr) for un-
skilled employees over the present rate established by the Agreement.
By virtue of the President's Reemployment Agreemnent, and in
anticipation of the adoption of t~his Codre_ together with the recent
improvement in business, there has been noticeable relief in
Thle Deputy Aidministrator in his final report to the Naitional
Indust~ral Recovery Board3 on s~idJ Code having found as herein set,
forth and on the basis of all the proceedings in this matter:
The Na~tionl Induist~rial Recovery Board finds that :
(a) Said Code is well designed to promote. the policies and pur-
poses of Title I. of the National In~ust~rial Recovery Act, including
removal of obs3tructions to the free flow of interstate and foreign
commerce which tend to diminish the, amount thereof and will
provide for the general welfare by prnomotingh the organization of
industry for the purpose of cooperative action amo\ngr trade groups,
by inducing and m~aintaining united action of labor and mlanalge-
mnent under adequate governmental sanctions and supervision, byr
eliminating unfair competitiver practices, byr pr~omotingi the fullest
possible utilliz;ation of the present, productive, capacity of industries,
by avoiding unldue restriction of production (except as may b~e
temporarily required), by increasing the consumlption of indu~striall
and agricultural products through increasing purchasing power, b
reducing and r~elieving unemployment, by improving standards o
labor, and by otherwise rehatbilitatinga mdusty.
(b) The Code as app'roed complies in all respects with t~he perti-
nrent provisions of said title of said act, including without limitation
sulbsection (a) of section 3, subsection (a) of section 7, and subsection
(b) of section 10 thereof; and that the applicant group is on indus-
trial group truly representative of the aforesaid Industlry; and that
said group imposes no inequitable restrictions on admnission to
(c) The Code is not designed to and w~ill not permit moniopolies
or monopolistic practices.
(d) The Code is not designed to and will not eliminate or oppr~ess
small enterprises and will not operate to discriminate against t~hem.
(e) Trhose: engaged in other steps of the economic process hav\e not
been deprived of the right to be heard prior to approval of said
TPhis Code, together with all documents pertaining thereto, are
herewith transmitted to you for your consideration and suchl action
as you may deem proper.
For the National Indlustrial Recovery B~oard:
WV. A. Hi\RanisAw.
JANURY 2, 195. dm~inistrative O~ffcer.
CODE OF ]FAIR COMPETITION; FOR TIHE CIGARETTE,
SNUFF, CHEWVING~, AND SMlOKING TOBACCO MANU-
To effect the policies of Title I of the Naltionlal Inldustr~ial Re-
covery Act, this Code is established as a Code of Fair Competition
for the Ciganrette, Snutf, Chewing, and Smoking Tobacco Manufac-
turing Indulstry, and its provisions shall be the standards of fair
competition for such Industr~y and be binding upon evoery~ member
As used- in this Code the following words and phrases shall be
defined as follows:
SECTION 1. The term Cigarette, Snuff, Chewing;, and Smoking
Tobacco Mlanufacturingng Industry means and includes the manu-
facture and sale by the manufacturer of all forms11 of cigarettes,
snulff, chewsingr and smoking tobacco and all processing of leaf tobacco
carried on by such manufacturer in the course of mtanufacturingf
said products, but does not include the handling or prizing of leatf
tobneco at any stage prior to (a) the proCPcssing of redryingr or (b)
in the case ofl tobacco thlat is not subject to the process of redry'~ig,
prior to th actual delivery thereof at the manufacturing plant.
SECTION 2. T'he term member of the industry or member "
mleansi and includes, without limitation, any individual, partnership,
association, corporation, or other formn of enterprise engaged in the
industry either as an employer or on his or its own behalf, and also
includes any affiliate or subsidiary thereof which is so engaged.
SECTroN 3. TIlhe term~ '"employee includes any and all p~ersonls
engaghed in the industry, however compensatedl, except a member of
SECTION 4. The term "L employer includes anyone by whom such
epoyee is compensated or emp loyed.
SCTION 5. The terms President." "'Act and~l Board "' mean.
respectively the Presidlent of thle United States, Title I[ of the No-
tional Industrial RCeovery ALct and the National Industrial Recovery
B~oardX app'ointedl pursua~nt to said Act.
SECTION 6. ~1116 10iIIIr ;WfltC'lmCll meRI1S RI employee at least
nilnety per cen't (90F-) of w~hose w\ork~ing time is employed in watch-
ing and safegurdi:~cl ngr the premises of a mlember of the, im~lustry.
SECTION 7. The term "L outside salesman means an employee not
~or~e than ten (10) hours per w~eek~ of w~hose work]ing time is spent
at the prelnuses of his employer and who is engaged in outside selling
functions arnd sales promotion activities.
SECTION 8. The term chewringa tobacco inc~llluds plug, twist,
scrap and line-cut chewing tobacco.
SECTION 1. 1%o employee shall be permitted to. work in excess of
forty (40) hours in any one week or eight (8) hours in any tw~enty-
four (24) houir period with the follow~ing exceptions:
(a) Employees engaged in emergency maintenance or emergency
repair work, involving breakdown or protection of life and property,
or in the emergency ha.ndlingr of tobacco where delay would cause
damage to the product; provided that in such special cases not less
than time and one-half (11/2) shall be paid for all hours worked in
excess of eight (8) hours in any twenty-four (24) hour period or
forty (40) hours in any one week. Work regularly recurrent in char-
acte~r shall not b~e defined as emergency work.
(b). Engineers, firemien, receiving and shipping employees may be
permitted to work fort~y-four (44) hours mn any one week, provided
that time and one-half (11/3~) shall be paid after eight (8) hours in
any twenty-four (24) hour period.
(c) Watichmen may be permitted to work not in excess of fifty-six
(56) hours ini any one week and ten (10) hours in any twenty-foulr
(24) hour period, provided, however, no watchman shall be per-
mnitted to w~ork in excess of thirteen (18) dlays in any fourteen (14)
(d) Emnployees workings in assignments connected with the han-
dling and prizing of leaf tobacco during the leaf buying season may
be pelnrmitted to work not in excess of for~ty-eight (48) hours in any
week, pr~ovided,. however, that such hours worked by such employees
shall be compensatedl for at the rate of at least time and one-half
(11j/2) for all hours worked ~in excess of forty-four (44) hours in any
one week or eight (8) hours in any twenty-four (24) hour periodic.
(e) The me ximnum hours of Section 1 of this Article shall not
apply to executive, managerial and supervisory employees who regu-
larly receive not less than thirty-five dollars ($35) weekly nor to
(f) Persons employed in accounting, clerical or office work may
be perlmittedi to work in excess of eight (8) hours in any twenty-four
(24) hour period, but not in excess of forty (40) hours in any one
SECTION 2. No employee. shall be permitted to work more than
six (6) days ini any seven ()day period, excepting those employees
covered by Subsections (a), (c) and (e) of Section 1 of this Article.
ECTION3 fo al O tiemployer shall knowin gly permit, any employee to
workforanytimewhih, hen added to the time spent at work for
another employer or employ'ers in this or any other iidldstry exceedts
the maximum permitted herein.
AZRTIC.LE T17- YAG~ES
Seenw 1.Minium Wges.- No' employee, except as hierein
other-wise providled', shlnl be paidl in any pay~ period less than at thle
rates per hour followings, nalelyv:
(a) Cigarettes~ci.-N'o emiployee engnagedl in the manufacture of cigi-
arettes (w~hethler emp-loyed on an hourly or piece worki basis) shall be
paid in any pay period less than at thle rate of forty cents (404) per
hour, except as herein othewis~ie provided;
(b) Xrnzcf a~nd Em~okln~g Tobacco.--No employee engaged in the
prcce~ssing or manufacture of snuff or smoking tobacco, or in the
processing or handling of cigarette tobacco at any stage prior to the
fabrication of the product ( whether employed on an hourly or
piece-work basis) shall be paid in any pay period less than at the rate
of thirty-five cents (354) per hour, except as herein otherwise
(c) Ukewuing Tobacco.-No employee engaged in any part of the
processing or manufacture of chewing tobacco, including stemming,
(wh~lether employed on hourly or piece-work basis) shall be paid mn
any pay period less than at the rate of twenty-five cents (250) per
(d) Exceptio --~R--Theree shall be thle following excep~tionsl, namel~ly:
Employees engaged as searchers, pickers, cleaners, hangers, prizers,
classes and hand-stemnunrs in any branch of the Industry other than
the processing and the manufacture of chewing tobacco shall be
paid at the rate of not less than thirty cents (300) an hour exrcep~t
that not more than fifteen, per cent (15%0) of such hand stem~mers as
are classed by their employers as slowrc workers but who work. on
the same per pound piece-work basis as the other stemmers m~ay be
paid at the rate of not less than twenty-five cents (254) per hour.
Machine stemmers in any branch of the industry other than the
manufacture of che~inlg tobacco shall be paid at the rate of n~ot less
than thirty-five cents (354) an hour.
SECTION 2. No person employed in accounting, clerical or office
work shall be paid less than at the rate of sixteen dollars ($16) for
a week of forty (40) hours, except that office boys and girls and
mlessenlgers may be paid at a rate of not less than eighty per cent
(80Cr) of the minimum ]hereinlabove specified; provided, however,
that the number of such boys and girls and messengers so comlpen-
sated below the prescribed minimum shall constitute not more than
five per cent (5%0) of the total number of all accounting, clerical
and/or office employees of anly office of any one employer, but in
any case each employer shall be entitled to at least one (1) such
SECTION 3. W~atchmnen shall be paid at the rate of not less than
e~ighlteenl dollars ($18) for a weekr of fifty-six (56) hours.
cZSECTION 4. Female employees performing substantially the same
work as male employees shall receive the same ralte of pay as male
SECTION 5. A person whose cn eningr capacity is limited because
of age, phyysical or mental handicap, or other infirmity, mraly be emn-
ployed on light work at a wvage below the minimum elstablished3 by
this Code, if the employer' obtains from th-e State Authority, desig-
nated by the United States Deparltment~l of Labor a certificatese authnor-
izing such person's employment at such1 wages and for such hursr as
shall be statedl by the Department of Labor in issuing certificates to
such~l persons.~ Each employer shall file monthly with the Advisory
Committee a list of all such persons employed by him, showing the
wages paid to, and the maximum hours of work for such employees.
SECrTION 6. WagescJ shall be exemnpt froml fines, rebates, charge s and
deduction's, except charges and/or deductions voluntarily made by
e~mployees or required by law for pension, insurance, or for benefits
funds. No employer shall withhold wages except under legal
process or othe nnpaers lawfully requi~ring such withholding.
S~EcTION 7. ThliS Article establishes minimum rates of pay which
.shall apply,! irrespective of whether an employee is actually com-
pensated on a time rate, piece work(, or other basis.
SECTION 83. Equitable adjustment. of compensation of employees
receiving miore than the mninimium rates of pay herein prescribed
shall be made by all employers who have not heretofore made such
adjustments, providled, however, in no event shall hourly or weekly
rates of pay be reduced as a result of the adoption of this Code.
ARTICLE V GENERAL LABon PRovIsows
SECTION 1. (a) EmnployFees shall have the right. to organize and bar-
ganin collectivePly, through r~epresentatives of their own choosing, and
shall be free from the interference, restraint., or coercion of em-
ployers of labor, or their agents, inl the designation of such represen-
tatives or in self-orgianization or in other concerted activities for the
purpose of collective bar~gainiingr or other mutual aid or protection.
(b) N\o employee and no one seeking employment shall be required
as a condition of employment to joini any company~ union or to re-
fromn from joining, organizing, or assisting a labor organization of
hi., onI choosing.
(c) Employecrs shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President..
SECTION B. 140 person under sixteen (16) years of age shall be
emplloyed in thle inldustry. No person under eighteen (18) years of
age shall be employed at operations or occupations which are hazard-
ous in nature or dangerous to health. The Advisory Comnmittee
shall submit to the Boar~d within sixty (60) days after the effective
date of this Code, a list of such operations or occupations. In any
State an. emp~loy~er shall be deemed to have complied with this
prov-ision as to age if he shall have on file a certificate or permit duly
issuled by the Authcoritly in such SCtate emlpowrered to issue employment
or age certificates or permits showing that the employees is of the
.CEc'TION 3. Employers shall make payment of all wages due, in
lawful currency or by negotiable. checks payable on demand. Pay-
ment of wages shall be at least as often as twice a month and salaries
as often, as every mont~h.
SCECTION 4. No pr'ovision of this Code shall supersede any State or
Federal Law which imposes on employers more stringent requlire-
mnents, as to age of emiployees, wnges, hours of work, or as to safety,
health, sanitary or general working conditions or insurance, or fire
protection than are implosed by this Code.
SiEcTIrns 5. (a) No emp!loyer shall change the~ method of payment
of emp~loyees' comnpensation or reclassify employees or duties of
roc~cupations~ performed by employees, or discharge employees to reem-
pl1oy them at a lower rate of pay, or engage in any other subterfuge,
so- as to defeat. the :purposes of the Act or the: provisions of this
(b) No emnployer shall dismiss or demote any employee for mak-
ing a comnplaint or giving evidence w-ith respect t~o an alleged vio-
Int~ioni of the provisions of this or any other approved cod~e of fair
SECTION 6. Every employer shall- post and ke~ep potdin a con-
spicuous place in his or its factory or other place ofor copies of
the provisions of this Code or any amendments thereto relating to
hours, wages, and working conditions applicable to those employed
mn such factory~ or other place of work.
SECTION 7. ]Every employer shall provide for the safety and health
of employees during the hours and at the places of their employment..
Such standards for safety and health shall be submitted by the
Advisory Committee to the Board within. six: months after the
effective date of this Code.
SECTION 8. 1Members of the industry shall furnish the Board or
their duly accredited representatives for their confidential informa-
tion such labor payrroll statistics on time and piece ~workIers as such
Board or its duly accredited representatives may deem necessary for
the purpose of de~termining that thze labor provisions of this Code
are being complied with in. every respect.
SECTION 9. No member of the industry shall permit homework.
ARTICLE `VI ORGANIZATION ANPiD CONSTITUTION OF THE ~ADVISORY
SECTIONJ 1. An Advisory Commlittee is herebyg established consist-
ing of five (5) members truly representative of the industry, to be
selected by the industry.
SECTION 2. Thre Committee shall serve as a point of contact be-
t ween the Board and thec industry and shall at all times be avail-
able for consultation by the NJationlal Recovery Administration.
SECTION 3. I~n order that this Committee shall at all times be truly
representative of the industry, the Board may prescribe such hear-
ingfs as it m~ay deemn proper and thereafter if it shall find that the
Advisory Committee is not truly representative, it may dissolve the
Committee and o~rder1 an appropriate selection of members. TIhe
for~egoing shall not, however, be construed to give the Board power
to appoint or to require the appointment of particular individuals
to the Commllittee or to deprive the Industry acting through repre-
sentatives of its own choosing of the right to select the members of
the Comminttee subject to the disapproval of the Board.
SECTIONV 4. NOf 11ng continued in this Code shall constitute the
members of the ~AdvFisory Committee partners for any pulrpose. N~or
shall any member' of the Advisory Committee be liable in an~y man-
ner to anyone for anly act of any other member, officer, agSent or
emprloyee of the A~dvisorly Committ~ee. Nor shall any member of
thel Advisory Committee, exerceising reso~nnb~le diligence in the con-
duct of his duties hereunder. be liable to anyone for anly action or
omnicsion to act under this cCode, except for his own wilful mal-
feasance, or nonI-fensancrlie.
SECTION. 5. The Comnmitter shall have the following powers:
(a) To adopt b~y-laws and rules and regulations for its procedure.
(b) To obtain from. m~embcrs of the indus11try, such information
and reports as shall be r~eqir~ied' b~y the Board for the naministrat~f ionl
of the pr1ov-isions~ of this Code, such information to be trans~mitted
directly to the Board. In addition to information r~equir~ed to be
submitted as aforesaid, members of the mdustry subject. to this
Code shall furnish such statistical information as the Board may
deem necessary for the purpose recited in Section 3 (a) of t~he Act
to such Federal and State agencies as it may designate; provided,
thant nothing in this C~ode shall relieve any member of the industry
of any existing obligations to furnish reports to any Grovernment
agency. No individual report shall be disclosed to any other member
of the industry or any other party except to such other Governmlental
agencies as miay be directed by the Board.
AnnICLE VII--PRICE INCREASES
Whereas thle policy of the Act, to increase real purchasing power
w-ill be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
cr~eases except such as may be required to mneet individual cost
shou)lld be delayedl andi when madle such increases should. so far as
pos-iblel, be limited to netual additional increases in the seller's costs.
This C'ode and all the provisions thereof are expressly made sub-
jec~t to thle ~igrht of the President., in accordance with the provisions
ofi Subsectionl (b) of Sjection 10 of the Act, from time to time to
canlcell or miodifyr any: order, approval, license, rule or regulation
issuedl urnder Title I of said Act.
No provision of this Code shall be so applied as to permit monopo-
hies or monopolistic practices or t~o eliminate, oppress, or discrimiinate
against smanill enterprises.
AlRTICLE, 1--ONSET ULaONAL RIGITTS
B~y presentingr and consenting to this Code the members of the in-
dus~try3 shall not be deemed to hiave woaived any of their constitutional
AnnIcLE XI-EFFECITIV DATE
This Code shall become effective on the second M~ondlay after its
Approved Code INo. 5439.
Regrist ry No. 16151:l.