Code of fair competition for the manufacturing industry in the territory of Hawaii as approved on February 14, 1935


Material Information

Code of fair competition for the manufacturing industry in the territory of Hawaii as approved on February 14, 1935
Portion of title:
Manufacturing industry in the territory of Hawaii
Physical Description:
p. 105-117 : ; 24 cm.
United States -- National Recovery Administration
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Manufacturing industries -- Hawaii   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1625-62."
General Note:
"Approved Code No. 550."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004917268
oclc - 632338900
System ID:

Full Text






I _
F'or sale by the Superintendent of Documents. Warshington, D. C'. Price 5 cent

Registlry No. 1625--62

Approved Code No. 550




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 Domnestic Commerce.
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass. : 1801 Custombouse.
Buffalo, N.' YT.: Chanmber of Comlmerce Building.
Charleston, 8. C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706j, 201 North WNells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detr~oit, Mlic~h.: 801 F~irst National Bank Building.
Houston, Tex.: Chamber of Comumerce Building.
Indianapolis, Ind.: Chamber of Commerce Buil~ding.
Jacksonville, ]Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Meemphis, T'enn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Custombouse.
New Ylork, N. Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philmlelphini R 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 Custombouse.
Seattle. Wash.: 809 Feder~al Office Building.

Approved Code No. 550



As Approved on February 14, 1935


An. application hlavingr 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 appr'oval of a Code of
Fiair Comlpetition for the M\anrufactur~ing TIl(dustry, and~ hearings
haigbeen~ duly held thereon, and the D~eputyAdministrator for
H~awaii having made and submitttedl to the Natinal Industrf Lidl Re-
cov;ery Board his report on said Code, containing his findlingsr with
rrespect thereto, and the annexed report of the N'ational Industrial
Recove-cry Board on said Code, containingf findings- with respect
thereto, h;,aving: been made and d'irtc~tedl to t~he ]President:(
NTOW, THERIEFORE, on behalf of the President of the United
States, the National Industrial Recoveryr Boardl, pulrsuant to au-
thorit~y vested in it by Executive Orders of the President, including
Exescutivee Order No. 6859, and otherwise; does herjbly incorporate
by preference said report of the Deputy Admlrinistrator for H-awmaii
and thne anlnexed report of the NPational Indus~ltr~ia Retcoverya Board,
and1~ does hereby concur in. and adopt the findings of fact. made
thleretin, and~does find that the said Code complies in all respects
wvithl the pertinent provisions and will promote the policy anld pur-
p'Oses of TIitle I o-f the National Industrial Recovery Act and doecs
hlereby, order that said Code of Fiair Comlpetition ber, alnd it is herebty,

B3y W~C. A. H.\ mu m~r. Adin~~li.istr~a ti e Opier.

JoHN W. UrrP,
Actingl Divi;sion Admini;,,.uf/rator.
Feb ruaryd 14, 1.935r.
115637-1000b -0---3. (1015)


The White House.
Smn: This is a report on the Clode of Fair Competition for the
Manurllfa~.tur~ing Industry in the TerritoryT of Hawaii. The Public
Hear1ing was conducted in H-onolulu, T. H., on Mn ~ch 23, 1934, in
accordance with the provisions of the National I~ndustrial Recovery
Act. Ain adjourned Public H-earingr was held in WNashington, D. C~.
J~une 281, 198,n in ordler to permit mainland competitors an oppor-
t~unity t~o be heard. The association claims to represent over 500/o
of thle Industry.
Estalismens mnufctuingthirty or forty different products
were groisn pedt Infor thpurpos o codifying. Some of the products
representedcc- are mlanufacturedt by only two or threelc concerns. There
is a wide divergence in character and size of e.stab~lishmentst.~ the
la-jority being very small.

Thle C'ode provides for a forty-four (44) hour work week for all
classes of employees, with a minimum wage of Ten Dollars ($10.00)
per week for females, Tvwelve Dollars ($12.00) for males and Four-
teen Dollars ($14.00) for office employees. Exception is made for
office boys and girls who may be paid a mlinimumll of ]Eleven and
20/100 Dollars ($11.20) a week. -Employees in a managerial or
ex~cu~tivec capacity receiving TIhirty-Five D~ollars ($35.00) per week
are exsempted fr~om maxrimnum hours, as are outside salesmen. WCatch-
men ar~e r~estrictedl to a fifty-six (56O) hour work week and are assurledl
one d~ay off in every fourteen days. Child labor is prohibited.
The l~owv minimlum is due to the large number~cl of factories owned,
opleratedl and staffed b~y Orienrtall < The Code Itlreprsnts a temporary
compr>omlise in the malLtter of hours and w-ages, in the inteIre ts of
c~omlpliance, withl an expr~esse intention on the pnr~t of the Deputy
Administrator to hold a Public HEearing at the end of four mo~nthis
looking forw\Tardt tow-ardc improvement in wa;ge and hlour schedules.


Thle l)'proosed Code will effect a drastic increase in wages~ andi redu~c-
tion of houllr for some 4r.0 of thec 2,500 to 3,000 employees in the

The Depultyr A~dministr ator for Hawaii in a letter addres.sedl to
the National Indus~tr~inI Recovery Board has made a clear and de-
tailedl report of the history of the Industry covered by this Code and


in thle cond~itions xc~isting~ in thant Indulstryp at the present tim~e. 3He
has nIinlle? knethyll and dectailedl findlings, of fact in Ii(,rgar to saidl
Industry. TIhe, said report of the Depu,1~ty A <1 m IinrIist ra;t or for H-aa i i
is Lsubm~itted~i herew'\ithi andc is inorpora;tedc by refelrcelcc into thiis
report and thne National ln<~11u-trial Rteco\er'Y Boardl does hereby cS on-
cur in annd ad~opts thec report submnitted.
For these, reason~l.. this Codle has bee~n apDr~ovedl.
For thre N~ationai~l Industria ~l RcoverI~ v board:

iEBRZUARY 14, 1!1::..



To effectuate the policies of TPitle I of the National Industrial
Recovery Act, this Code is established as a Code of Fair Competition
for the Mlanufactur~ing Industry in the Territory of Hawaii, and
its provisions shall be the standards of fair competition for such
In d ust ry.

SrEnoxI'I 1. The term Manufacturing Industry as used herein
shall mean the makings or assemnblingr in the TIIerritory of Hawaii of
ainy goonds or wanres for sale alnd the primaryr sale thereof by the
mnaker or assembler and the furnishingr of manu~lfalcturng or repair
services for remuneration, wh~len such. activities are not governed
by anly other code of fair competition which has been or may here-
alfter be aIpproved specifically for the Territory of HaLwaii. The
termn '" Ma~n ufacturingf Induslctry3 does not include those local service
industries and/or trades which hav-e been desigrnatedt as such by the
Administrator for I~ndustrial Reco~very or the NI\ational Industrial
Recovery Board pur~suaznt to Exeen-ltiver Orders of the Presidesnt,
including Execut~ive Order N~o. 6723, daltel IMay 26, 1934, and
SECTION 2. 1Che1 terml 3feinhler of the Industry as used herein
includes, but without limitation, an~y individual, partnership, asso-
ciation, corporation or other form of ente~r~priis engazged in the In-
dustry, either as an emplloyed or on his or its own behalf.
SECTION 3. The term 1Employ~ee as usedc' herein includes any
and. all perlsons enrrgaged in the Industrry, however compensated, ex-
cept a member of the Industry. 4. TIhe terml Employer as usedi here~in. includes anyone
by whomn such employee is compen-atedl or employed.
SECTION 5. The terms Presidlent ", and "LAct ", as used herein,
mean, respcctively, the Pr~esidenlt of the United States and T'itle I
of the National Industrial Recovery ~Act.
SCEenowO 6. The term "' Territorial Code Authority as used here-
in, means the administrative agency, constituted as provided for in
Article VI of this Code.
SECTION 7. The term Couuty as used herein means the City
and County of Honolulu, and/or the other counties of the Territory
of H~awaii as defined by Section. 157i5 of thle Revised Laws of Hawaii



SECTION 1. On and after the effecti~ve- date of this Code no em-
play!ee shall be permitted to wFork in excess of forty-four (44) hourls
inl anly one w\eek, andt eight (8) hours in any twcenty-four (24) hour
period (beg~inning~ at mindnigh~t) except as herein otherwise provided.
STECTION 2. No em~ploy)ee. shall be pecrmlitted to work on more than
six (6) days in anly seven1 (7) day period, except as provrided in
Section 6 of this Article.
S~E(CTION 3. aOWrsf8 r GO leriCal and: Of)Ece En; laye7,? es.--N o peran'
employed in clerical or office work shall be permitted to w~o~rk in
exSICess2 of forty-four (44) hours in anyr one (1) werek, or mo~rre than
teni (10) hiour~s in anly tw-enty-four (24) hour period.
SEC'TION 4. Em~ergrenyJ Repair Wtorki.--In case of necessity al'brisin
from emerge~tn cy or from the character of the work, or from. th~e
irnability to obtain competent labor, permission mal~y be gr~antedl b7y
the National Industrial Recovery3 Boatrd, upon proper showing en
made, to exceed- thne foregaoing limitations, provided such permission
shall be granted onlyT upon such. conditions imposed by the saidl
National I~n~dustriatl Recovrer~y Board. All h~ours in excess of forty-
foulr (44) hours in any one (1) week or eight (8) hours in any onle
(1) tiay shall be paid for at not less than one and one-third (~11/)
times the regular rate.
SECTION 5. Eweceptionzs as t~o Hours.-T~he provisions of this Article
shall not apply to outside salesmen, or to per~so.ns employed~ in a
manallger'ial or executive capacity who earn not less than Thirty-five
Dollars ($35.00) per week.
SECTION 6. Watchmen shall be permitted to work no mnor~e than
~fifty-six (56) hours per week and no more than thirteen (13) days in
anyI fourteen (14) dy period.
SECTION 7. Eli ploymen') t by S~icecral Emnployzer~s.--No employer
shlall k~now-ingly permit any employee to wTork for any time wRhich,
w-hen totaled with that already performed with- another em~ployer~ or
employers, exceeds the max~imlum permitted herecin.

SEcTIOrN 1. (a) On and after the effective date of this Cod-e no
emnplojyee shall be paid less than at the rate of TwTelve Dollars ($;12.00)
per weekl, provided, h~ow\ever, that a woman employee mlay be paid
at the rate of pay not less than T~en Dollars ($10.00) per w~eek only
inr th~e event that she is engaged~ solely in light work for which sudi
lessier rate of pay sha:ll hlave be~en appro~vedl in advance r by the Terri-
torial Code Auithority and/or the Natio~nal Ilndustrial Recover~y
Board, and a list showing each woman so enployed and paid at such
lessier rate shall be furnished promnptl~y to thle Territcr~iall Code
Aluthor~ity and~/or the National Industrial Recovery Board; pro-
vridedT, further, that female employees performing subs~tantially the
sam~e work as' male emnploye~es shall receive thet same rate of pay as
miale employees.
(b) Office and clerical wo.rker1s shall be paid. at the r~ate? of no~t
less thn Foultrteenll ars:I' ($14.00) a weekl.

Approved Code No. 550

Registry No. 1625-62




As Approved on February 14, 1935

Page 108, Article II, Section 7, first line, change the word
"' County "1 to read County '"

118955"-1003-29 35

w, s. 0eovenUeW y atrsueII IPE or cross

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(c) Office boys and girls shall be exempt from such wage provi-
sions provided they are paid not less than at the rate of ]Elleven and
20/100 Dollars ($;11.20) a week, and further provided, that the num-
h~er of such office boys or girls shall not exceed one (1) for each ten
(10) offce workers or fraction thereof. All establishments shall be
allm-,\wcl one (1) office boy or girl.
SECTION 2. In the case of employTees performing~ work for which
they ar~e paid per piece of work performed, the minimum rate of Kpy
whic eah mmbe oftheIndustry shall pay for such work sal
produce earnings per hour for each employee for the number of hours
worked in anly pay period at least equal to the minimum rate of labor
for the same? type of work on an hourly- basis.
SErne lx 3. Nothing contained in this Article shall be construed to
apply to employees wYhose rates of wages are established for specific
projects b~y competent governmental authority in accordance with
law or with rates of wages established by contracts now in force, pro-
vided such rates of wages are equal to or in excess of prescribed
mnimmumn rates.
SECTION 4. All mninim1um11 rates of wages shall be net and without
any deductions as to training fees, compulsory savings or deferred
payments. Deductions for meals and lodging mayT only be allowed
upon a scale of prices approved by the Counlty Code AQuthority, and
the National Industrial Recovery Board.
SECTION 5. The weekly or monthly wages of all employees receiv-
ing more than the minimum wages prescribed in this Article shall
not be reduced from the rates existing upon July 15, 1933, notwith-
standing any redu-tction in the number~l of wrorkinga hours of such
SIECTION 6. No employer shall consider the minianusun wages set
forth above to operate as fixing maximlum wages.
SECTION 7. Wages shall be paid at least monthly in lawful money
or by negotiable check payable on demand. Wa-ges shall be exemnpt
from fines, charges, rebates, deductions or any other form of with-
holdiing w~iages except for contributions voluntarilymade by theaet hl
empoye orrequired by law. The employerorhsaetshl
accept nro rebates directly or indirectly on such wages nor give any-
thing of value or extend favors to any persoi n for the purpose of
influencing rates of wages, hours, or th~e working conditions of his


Seen1ow 1. (a) Empllloyees shall have the right to organize and
bargain collectively through representatives of their own choosing,
and shall be free from the interference, restraint, or coercion, of
employers of labor, or their agents, in the designation of such repre-
sentatives. or in self-organization or in other conlcerted activities
for the purpose of collective bargaining or other mautnal aid or
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from joining, orgamizmg or assisting a labor organization of his own


(e) Emlol~ryers shall comply with the mnaximum hours o~f labor,
mlinimnuml rates of payi!, and otherr condlcitions of emnployimenlt appirolvdc.
or pr~escribedet b~ Yo the ]President.
SSECTION 2.oemployer shall reclatssify emp~lloyees~ or duties of
occuplations performed, or engaged~c in any other subterfulge so as to
defeat the purposes or provisions of thle Act or of this Code.\.
SECTION 3. (aZ) Evcery employer shall provide for the! safety anld
hlealthl of employees during the hours and at the places of theirl
(b) Standtards for safety and health shall be submittedl by thle
Ter1ritor~ia l Code ~Authority to the National Indlust~iall RecoveryS
Board wlithinr three (3) mIlonths after the effective3 cller of this Code.
S~LECTION 4. A person whose earning capacity is limited because
of age or physical or mental handicap or other infirmity, maylr be
employed on light work at a wage below the mlinlimumll established
by this Code, if the employer obtinsc from the au~thorityv des~igrnated
by the United States Department of Labor, a certificate authorizing~
such person's employment at such wages and for such hours as shall
be stated in the certificate. Such Authority shall be guided by the
instructions of the United States Department of Labor in issuing
certificates for such persons. Each employer shall file monthly with
the Territorial Code Authority, a list of all such p~el.ons~ emlployed~
by himI, showing the wages paid to, and the maximum hours of wolrkl
for such employee.
SECTION 5. No0 provision in this Code shall supersede any Terri-
toriatl or FeCderal 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 insurn neell,
or fire protection, than are imposed by thiis Code.
SIECTION 6. (a) A~ person may be employed as an apprien~tice byr any
member of the In~dustry at a wage lower than the minimum wage, or
for any time mn excess of the maximum hours of labor, es~tablishedl in
this Code, if such member shall have first obtained from an agejncy\
-to be designated or established by the Secretary of Labor, a certiti
cate permitting such person, to be employed in conformnity w\~ith a
training program approved by such agency, until and unless such.
certificate is revoked.
:(b) Thne term "L apprentice as used herein shall mean a pe esonl of
at least sixteen (16) years of age w~ho has entered into a wrIitten con-
tract w\pith. an employer or an association of employers which provides
for at least two thousand (2000) hours of reasonablyr continuous emn-
ployment for such person, and his participation Yin an apprl"oved'
program of training as hereinabove provided.
SECTIoN 7. All employers shall post and keep postedi copies of this
Code in conspicuous places accessible to all employ~-~ees. EveryJ mem11-
ber of the Industry shall comply with all rules and re~gullationsl r~ela-
tive to the posting of provoisionls of Codes of Fair Comlpet~ition which.
may from time to time be pr~escr~ibed by the National Induslrtria l
Recovery Board.
SEc1~row 8. NSo person under eighteen (18) years of age shall be
employed in the Industry in hazardous oc~cuplations. Nopes
under sixteen (16) years of age shall be employed in thle I[ndustry in
any capacity. Any employer shall be deemed to have comp~liedl with


this prov~ision as to agre if he shall have on file a, cer~tificalte or permit,
dully sigrnedl by thP AuIthority ;in the1 Territory~ of H-awaii empoweredl
to issue employment or age certificates showing that the employee is
of the required age W;ithin thirty (30) days after the ap~pr~ovnl of
thlis C'ode the Ter~ritorial Code Authority shall furnish to the N~a-
tiolnal Indlustr~ial Recovery Board a list of hazardous occupal~tions
writhin the mean~r ingc of this Section.
SECTION 9. NYo employee shall be dismissed, demoted or dlisc1rimi-
noted2 against by reason of making a co~mplaint, or gi~ving evidence
w\\ithl respect to an allegedi violation of this Code.


Sun:.'~ oN 1. (ai) W~ithin sixty (60) days after the effective date of
this Codle, there shall be constituted a Territorial Code Authority
cco-,1i.ting~ of seven (7) members to be elected by members of the In-
dulstryr ait a me~tingr or meetings called by the Temnporary Territorill~n
Code Authority, upon twenty (20) days' notice sent by reg~istered'
mlail to all known members of the Industry who may vote either
in person, by proxry or by mail, each member~c l of the IndustryT being
entitled to one vcter. Th'1e mIclllembes of the Territorial Code Au-
tholcrity first elected shall serve until their successors are eltrect.
During such sixty (60) dayr period, until such Territory Code Aiu-
thlorit~y has been so constituted, th~e committee of the group or the
association sponsoring this Code shall constitute the Teemporary
Territorial Code Authoritly. The members of the Territorial Code
Aulthorit~y shall be elected in. ther following manner:
TIhrete (3) shall be elected by the members of the Manl~ufacturers
Association on the Island of Oahu;
One (1) shall be elected by thne members of the Mlanufacturers
Association on the Island of M~ani;
One (1) shall be elected by the m~embe~crs of the Manufacturers
Assoc~iationr on the Island of Kausi;
Obne (1) shall be elected by the members of the Man ulfac-t r ers
A-sw,~intio~n on the Island of HEairnii; and
One (1) shall be elected- by members of the Industry, not members
of t~he Association, or failing such election, such member shall be
ap~pointedl by the National Indutrl~iall Recovrery Board from a list
submnitted~ by non-members of the Manufacturers Association, or, if
sucth a list is not submiittied, thle National Industrial n Recoer~y Boardtl
shlall appoint from members of thle Indus~tr~y wcho are not mn~rlembes
of thle Association, one (1) mnemnbr of the Territorial Code Author-
ity. In addition thereto the National Indtustr~ial Recovery or
m-ay appoint one (1) member of the Code Authority from I1the
non-mlembers of thre association.
WIThere a vacancy occurs in the mlember~l'ship) of the Territor~ial CodI:e
Authority, such vacancy shall be filled by the majority vote of the
rt~remaiing Codce Aluthority members, provided th~at such vacancy is
filledl by a, represe~lnttive! f~rom the same group as was the vanca~ting

(b~) In addition to mlembership> as abover provided,-1 there may be
three (3) members, w\ithlout vote, to be known as Administration


Members, to be appointedc by the N'ational Indu. rtr~ial Rec~overy
Board to serve for such terms us it mnay sprcify.
SECTIN 2. Each. trade or industrial diirectly7 or indi-
rectly~ participatingv in thie selcr!.tio~n or activities of the Territorial
Code Authority shall (1) impose no inequitable r!tr~ic~tions on mleml-
bership, and (f2) submit to the National Industrial Recovery Board
true copies of its articles of association, byp-lawPls, regulations, and
any amendments when made thereto, togetherc~l with such other infor-
mation as to membership, organization, and activities as thze National
Industrial Rtecovery Board many dceem necessary to effectuate the
purposes of the A8ct.
SECTION 3. In order that the Territorial Code A~uthority and/or
the~ County Code Authority shall at all t lines- be truly representative
of the Industry and in other respects comply with thle provisions of
the Act, the National Industrial ]RecoveryT Board may prescribe such
hearings as it may deeml proper; and thereafter if it shall find that
the Territorial Code Authority and/or the County Code Authorityr
is not truly representative or does not in other respects comply with
the provisions of the Act, may require an appropriate modification
o-f the T~rritorial Codte Authori ty and/or the County Code Authoiy
SECTION. 4. Nothing contained in this Code shall constituted
members of the Ter~ritorial Code AuthorityT and/or the County Code
Authority partners for any purpose. Nor shall any member of the
Territorial C ode Authority and/or the Countyo ~ Code Authority be
liable iln any manner to anyone for any ac fany other mlembler,
officer, agent or emnployee of the Territorial Code Authority and/or
the County Code Authority. Nor shall anly member of the Terri-
t-orial Code Authority and/or the County Code AIuthority exercising
reasonable diligence in the conduct of his duties hereunder, be liable
to anyone for any action or omission to act under this Code, excep~lt
for his own. wilful malfeasance or nonfeasance.
SE@CTION 5. If the National Industrial Recovery Board shall at any
time determine that anly action of thne Territorial Code Aulthorityt or
any agency thereof mlay be unfair or unjust or con trn ry to the public
interest, the National Industrial Recovery Board lnur y require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by such
Territorial Code Authority or agency spending final action which
shall not be effective unless the National I~ndustrial Rcovery Board
approves or unless it shall fail to disapprove after thirty (30) days'
notice to it of intention to proceed with such action in its original
or modified form.
SECTION 6. (a) Subordinate to thze TPerritorial Code Authol(rlity
established in Sec~tion 1 of this Article, there shall be co~nstitulted;
County- Code Authorities for those counties of thie Territo~ry, where
in the opinion of the National Indlustr~ial Recovery Board the Terri-
torial C~ode Authlority7 will require assistance of a regional group in
its duties of in vest ig t ion, fact-finding, ed u n t i o and research. M~eml-
bers of the County Code Authorities shall be elected in a mannerlr
satisfactory to the Nation al Indus~t rial Reco~very Board by the Ind~tus-
try at large in the county where they are to serve and shall be! tru~ly
r~epresenltative of the Indlustry in that county.


(b) In addition to membler~ship o~n the County Code Authority as
above provided, there mnay be one (1) memlber, without vote, to be
known as thze All1min~i'tention Sk~inhler, to be appointed by the Na-
tionatl Industrial Recovery Board to serve fo~r such terms as it may
SECTION 7. PO1D878 and.c Dull, s.-Subject to such rules and regula-
tions as mlay be issued by th~e National Industrial Recovery Boar~d,
the Territorial ~Code Authority shall have the followingr powers and
duties, in addition to those authorized by other provisions of this
(a) To insure the execution of the provisions of this Code and
to provide for the compliance of the Industry wr~ith the prFovjicii;n of
the Act.
(b) To adopt by-law~s and r~ules and regulations for its procedure.
(c) T~o obtain from mlembers of thne Industry such information
and reports as are required for thle administration of the Code. In
addition to information required to be subolllittedJ to the Territorial
Code Authority, members of the Industr~y subject to this Code shall
furnish such statistical information as thle National Indus4trial Recov-
ery Board mlay deem necessary for thle purposes recitedl in Section
3n (a f thec Act, ton such Federalp andl Territolrialf agrenies as it may
designate; provided that n~othingr in this Code shall relieve any mem-
ber of the Indusltrya of any exist-ing obligations to furnish reports
to any government agency. No ind~ividual report shall be disclosed
to any other memb~ller of thle Inldustry or any other party except to
suc --- ---------nh other onve-rnmental agencies as may be diirected by the National
Indus~trinI Recovery Board.
(d) To use such trade associations and other ag~encies~ as it deemlls
properr for t~he carryi ngc out of any of its n et i i t ies provided for hle~e i n,
provided that nothing herein shall relie-ve t~he Territorial Code
Authority of its duties or responsibilities under this Code and that
such trade associations and gn~lc~iess shall at all timles be subject to
and comply with th~e provisions htereof.
(e) To make r~ecom~nielna~ntions to the National Indutlriat~ l Recov-
ery Board for the coordination of the administration of this Code
and such other codes, if any, as many be related to or affect mlembers;
of the Industry.
(f) (1) It being found necessary in order to sulpport thle! adminis-
tr~ation11 of this Code and to maintain the standards of fair competti-
tion established hereunder and to effectuate the policy of the Act, the
Terr~itc oria l Code Authority is authorized:
(a) To incur suchr reasonable obliga~tioIs as are newma r;l1y and
'proper for thle fo~regroing purposes and to meet such obl-ligaltions
out of funds which malty be raised as hereinafter provided and
which shall be held in trust for the purpose of the Code;
(b) To submit to the National I~ndustrial Recovery ]Boardl
for its approval, subject to such notice and opportunity to be
hearld as it may deemn neclrsary (1) an itemized budget of ~its
estimated expen esc.~ for th~e foregob'ing" purposes, and (2) an
equitable basis upon whlich the funds necessary to support such
budget shall be contributed by members of thet Industry;
(c) AftePr uc~~h hadglet and basis of contribution have been
approv\edl by the Na~tional Indlustrial Recovery Board, to deter-


maine and obtain equitable contribution as above set forth~ by
all members of the Industry, and to that end, if necessary, to
institute legal proceedings thlerefor in its own namec.
(2) Each memnber of the Industry shall pay his or its equl~itable~
contribution to the expenses of the mnaintenancet of the TCerritor~ial
Code Authority, determined as hereirnabove provided, and subject to
:rules and regulations pertaining thereto issued b~y the N~ational Inr-
Ju~str~ial R~covery3 Board. Only members of the Industry c~ompl-lying
with the Codle and contributing to the expense s of its administr~a ir~m
as her~einabove provided (unleP~Ss duly exempted from manking suelh
contr~ibutiorns), shall be entitledl to participate in the s~lecitio~n of
memnber~s of the Territorial Code Authority or to receive! the beI~tsltrt
of any of its voluntary activities or to makre use o-f any emnbleml
or insignia of th~e N~ational Recovecry Adminill.-t ralt in.
(3) The Ter~ritorial Code A~uthorit~y shall neither incur nor pay
anly obligation substantially in excess of the amount thereof as esti-
m~ated in its approv~\edl budget, and shall in no event exceed the! total
amount contained in the approved budget, except upon approval of
the National Indusltr~ial Recovieryr Board; anld no subls~equenrt budgect-
shall contain anly deficiency item for expenditures in excess of prior
budget, esltimates except those which the National Indcustrial Rc~coveryJ
Board shall have~ so approved.
(g) To" recommend to the National Industrial Recovery Board any
action or mi,~leasres deemned advisable, including further fair trade
practice provisions to govern mnemblers of the Industrly in their rela-
tions with each other or with other industries; measures for indus~-
trial planning, and stabilization of employment; and including mlodi-
fications of this Clode which. shall become effective as part hereof upon
approval by the National Industrial Recovery Board after such
notice and hearing as it maya specify.
(h) To appoint a T~radie Practice Committee which shall meet with
the Trade Practice Conul~nittees pointed under such other codes as
may be related- to the Industry for the purp~ose of formulating fair
trade practices to govern the relationships between employers under
th~is Codle and Ilndelr such other codes to the end that such fair trade
practices may be p~roposedl to the National Indus~trial Recovery Board
as ame-nd~ments to this Code and such other codes.
(i) To provide appropriate facilities for arbitration, and subject
to the approval of the National Ind~ustr~in RIecover~y B3oard, to pre-
scrib~e nrles of Ilorneedur e andl rules to effect cocmp~liance with awarvrds
andl determinations.


Seenoxr 1s. Inal,lcurae Advlertfi8;ing.-No member of th~e Indust ry
shall publlish~ adver~tisingo (whether printed, radlio, disiplaly, or of any
other nature), which is mlisleadling or inaccurate in any material par-
ticular, nor shall any member in, anly way misrepresent any goods
(inlc-ludiing. bult without limitation, its use, tra~de-markr, grade, qual-
ity, qualntityr, origin, size, sulbstance. character, nature, finish, mate-
rial content or prepaln;tion) or credit ter~ms, values, policies, services,
or the nature or form, of the business conducted.


SECTIION 2. False Billing.--No member of the Industry shall know-
ingly withhold from or insert in any quotation or invoice, any state-
ment that makes it inaccurate in. anyT material particular.
SECTION 3. Inaccura~te Labelling.--No member of the Indlustr~y
shall brand or mark or pack anly goods in any manner which tends to
or does deceive or mislead purchasers with respect, to the brand, gal~de,
quality, quantity, origin, size, substance, character, nature, finish,
material content or preparation of such~ goods.
SECTION 4. D~efatuatcion!.--No member of the Industry shall defame
a competitor by falsely imputing to him dialumror~able conduct, inabil-
it~y to perform cocntrancts, questionable credit standling, or by other
false representation, or by falsely d~isp~araginga the grade or quality-
of his goods.
LrEnoxI~) 5. Threats of Lawtz Suits.--No member of the Ind~ustry
shall publish or circulate unjustified or ulnwarrantedc thrIents of legal
proceedings which tend to or have the effect of harassing competitors
or intimidating their customers.
SECTION 6. lSecr~et Rebates.---No mnlllembe of the Industr~y shall se-
cretly offer or make anly payment or allow~an~e of a rebate, refund,
cconunllission, credit, unearned discount or excess allowance, whether
in the form of money or otherwise, nor shall a member of the Industry
secretly offer or extend to anly customer any special service or privl-
legfe not exttended to all customers of the same class.
SECTION 7. S6llifig On CO?18/gA77enzt.--No member of the Industry
shall ship goods on consignment except under circumstances to be
defined, by the Territorial Code Authority and approved by the Na-
tional Inldustr~ial Recovery Board, where peculiar circumstances of
the manufacturer requ~ir~e the pr~actic~e.
SECTION 8. COmtH.8Cial BfI;(fIf.--NO Dmember of the' Industry
shall givTe, permit to `be given, or offer to give, anything of value
for the: purpose of influencing or rewarding the action of any em-
playee~t, agent, or representative of another in relation to the business
of the employer of such employee, thne principal of such agent or
the represented party, without the knowledge of such. emlployer,
principal or party. This pr~ov'ision~ fshall not be construed to prohibit
free and general distribution of articles commonly used for ad~ver-
tising ex~eplt. so far as suchl articles are actually used for commercial
bribery as hereinabove defined.
SECTION 9. Inducrlingl Breach of Emil-sting Contrai~cts.r--No member
of the Industry shall wilfully indure or attempt. to induce the breach
of existingr contracts between competitors and their cus~tomelrs by
any false or dleceptivec meann, or interfere with or obstruct the per-
formnance of an~y such. conltra~c-tual duties or services by any such
means, with. thze purpose and effect of hnamnpering, injuring or emlbar-
rassing competitors in their bus~iness~.
SECTION 10. Cor rel.;io.--No member of thle Industry shall require
that the purl1chne e or lease of any goods be a pr~erequrisite to the pur-
chase or lease of any other goods.
A1 r:lrry:L~e VIII-PRICE, INc~l.1:.\NES

Whereas the policy of the Alct to incerinse real purchasIng~I: po-wer
will be made more difficult of consununall~l tion~l if prices of goods and


services increase as rapidly as wages, it is recognized that price in-
cr~eases, except such as .may be retquiredl to meect individual cos,ts,
should be delayed, but w~hen made, sulch incr~enws should, as far as
pIossib~le, be f ruilted to actuall additional inlcreases in thle acllerl's costs.

SECTION 1. Trhis Code and all the provisions there~cof are exl.''" 17
made subject to the right of the President~rt, in ncoa:lone~ r~e withl thec
provisions of subsectionl (b) of Section 10 of the Acet, fl.nnl time1( to
timze to cancel or modify any order, approval, license, rule, or regnr~-
latio~n i~ssued- under Tlitle I of said Acct.
Seeno 2. uch provisions of this Code as are not required to
be included herein b h c awt h prvlo h a
tional Inldustrial Recovery Board, be mnodifiedl or elimlina~tedl in such
manner as mnay be indicated b~y the needs of the public, byv chang1I~es
in circumstances, or by experience. All the prov)\isionsL of thlis Code,
unless so modified or eliminated, shall remain in effect until June 16,

No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to e~liminute, op~press, or discrimi-
nate against small enterprises.


This Code shall become effective thirty (30) days after its
approval by the President.
Approved Code No. 550.
Registry No. 1625-62.

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