NAIJ,'C]ONllAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
CORN COB PIPE INDUSTRY
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code Nor. 498
Registry No. 1651--04
AS APPROVED ON AUGUST 7, 1934
WE DO OUR PAI~I
GOVERNMENTAL PRINTING OFFICE
i I ii C1 i7
This publication is for sale by the Superintendent of D~ocumen~ts, Government
Printing Office, WCashington, D.O., and by district offices of the Bureau of
Foreign and Dolmestic CommlerTe.
DISTRICT OFFICERS OF TH[E DEPARTMENT OF COMMERCE
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Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
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Charleston, S.C.: Chamrber of Commlerc~e Building.
Chicago, Ill.: Suite 170~6, 201 No'irth Werlls Street.
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Dallas, Tex.: C'lnumber of Comlmerce Building.
Dectroit, Mich.: 801 FEiirst National Banlk Building.
Houston, TeX.: Chamlber of Commerc~e Buildling~.
Indianapolis, Ind.: C'hamber of Commnerce Building.
Ja~cksonville, Fla.: Oblnmber of Clom~e~c~e Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 116i3 South Broadwany.
Louisville, KEiy.: 408 Federal Building.
Memaphis, TCenn.: 229 Federal1 Building.
Minneapolis, IMinn. : 213 ]Federal Building.
New Orleans, La.: Room 225-A, Custombol:use.
Newr York, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 Eiast Plume Street.
Philadelphia, Pa.: 422 Comnmercial T1rust Building.
Pittebur~gh, Pa.: C.hambercr of Commerce Building.
Portland, Oreg.: 215 New Post Office 1Building.
St. L-ouis, M~o.: 506 Olive Street.
San. Francisco, Calif.: 310 Customblouse.
Seattle. Wash.: 800 Federal Office Building.
Approved Code No. 498
COD)E OF FAIR COMPETITION
CORN COB PI[PE IN~DUSTC"RY
As Approved on August 7, 1934
CODE OF IiAIR COM PETITION FOR THE~ CORN COB PIPE INDUSTRY
An application having been duly made pursuatnt to and in full
compliance with thne provisions of Title I of the NIational Indus-
trial Recovery Act, approved June 16, 1933, for approval of a Code
of Fair Compxetition for the Corn Cob Pipe Industry, and hearing
having been duly held thereon and the annexed2 report on said Code,
containilng ~findmgs with respect thereto, having been made and
directed to the Preside~nt:
NOWT, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to aulthority vested in me by Executive Orders of thle
President, including -Executive Order No. 6543-A4, dated Decem-
ber 30, 1933, and otherwise!; do herebyS incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said
Code of Fair Competition be and it is hereby approved; provided,
however, that a further study shall be made regarding the mlnmmum
rates of pay as provided in Article IV, Section. 1 of the Code and
that a report, covering same shall be made to the Admiinistrator
within sixty (60) days from the effective date hereof, for the pur-
pose of deter~mig the advisability of increasing the said minimum
HUGH S. JaRNuon,
Administrator for Indcustrial Recovery.
GEO. L. BERRYP, a
Aulgust 7, 19356
78872* -~P104-37-34 _(13
REPORT TO THE: PRESIDENT
The Whit~e House.
Smx: The public hearing on the Code of Fair Competition for the
Corn Cob Pipe Industry of the United States, submitted by, a Code
Committee of Corn Cob Pipe Mannufacturers, was conducted in
Washington, D.C., on the 17th o~f M1ay, 1934, in accordance with the
pr~oisiojns of the N~ational Industrial Recovery Act. The Code
Committee claims to represent approximately 90 percent of the
The maximum hours establishedl under this Code are 40 per week,
with the exception of one period, not to exceed four weeks, in each
six months, during which time employees may be permitted to worki
48 hours per weekl provided they are paid at least time and one-half
for all hours worked in excessj of eight per day and forty per week.
Exceptions are allowed for managers and executives who receive
$35.00 or more per weekr, engrine~s, who may work 45 hours per week,
anld employees engaged in emergency maintenance and repair work,
provided that such emp~loy~ees receive at least one and one-half" times
their normal rante of pay for all hours worked in excess of 40 per
In 1929 this Industry operated approximately 51 hours per week
and the same hours prevailed in '1931.
The m~inimumra wages e~stab~lishedl under this Code are 27%z cents
per hour for males and 22Y2 cents per hour for females. While t~his
wage appears to be low, it is pointed out that when compared with
the wages prior to this Code, which were 19 cents per hour for
males and 13.8 cents per hour for females, thie wages under this Code
represent a substantial increase to the employees. Protection of
employees on piecework performance is guaranteed.
The Dep~uty Administra~tor in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
inigs in. this matter:
I: find that:
(a) Said Code is well designed to~ promote the policies and pur-
poses of Title I of the National Indust~rial Recove~ry Act, including
the removal of obstructions to-the free flowr of interstate and foreign
commerce whT~ichl tendl to diminishi tlhe amount thereof and will provide
for the general w~elfa re by promoting t~he, organrz~ation of industry for
the purpose of rcoperant~ive action among the trade groups, byr indluc-
ing and masintaining united action of labor and manageement under
adequate goTVernmental sanlction~ss and supervision by elnimn~inatn
unfair comipetitivre practices, by promoting the fullest possible utili-
z~ation of the present proluc~tive capacity of industries, by avoiding'
undue restrictions of production (~except as may be temporarily
required) by increasing the consumption; of industrial and agricul-
tural products through indi-easing purchasing power, by reducing anrd
relievmng unemployment, by improving standards of labor, and by
otherwFise! rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry~.
()The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including witht-out limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 Whereof ; and that the applicant Coma-
mittee is a trade group truly representative of the aforesaid Industry.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises anld will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process hatve not
been deprived of the right to be heard prior to approval of said
This IndustryT has cooperated in a most satisfactory manner with
the Administration in the preparation of this Code. From. the ev~i-
dence adduced during this hearing and from recommendations and
reports from. the various AldvrisoryT Boards, it is believed that this
Code as now proposed and revised represents an effective, practical,
equitable solution for this Industry and for these reasons has been
Huanc S. JoHN80so,
AUGUST ?, 1934.
COD01E OF` F~AIR COTPETITIION ]FORi~ TH-E: CORN COB PIPE
TPo effect thze policies of Title I: of the National Industrial Recov-
ery Act, this Code is established as a Code of Fair Competition for
the Corn Cob P~ipe Mannufacturingr Industry, and, its provisions shall
be t~he standards of fair competition for such industry and shall be
bindling upon every member ther~eof.
S"ECTION 1. The terlm "' Clorn C~ob Pipe Marnulfacturiia ng Inustry *
or Indus~try as used herein includes the manufacture of pipes,
the bowls of which are made from corn cobs, and such related
bral.nc'hes or subdivisionsr as may from time to time be! included under
the provisions of this Code by the President of the United States,
and-after such nortice and h~earilngs as he mnay prescribe.
SECTION 2. The term MIem~ber of the Industry "' or Member "
includes, bu~t withlout limitat-ion, any individual, partnership>, associa-
tion, corporation, or other form of enterprise engfaged in the indus-
try, either as employer or on his or its own behalf .
SECTION 3. The term "L employee as used herein includes any and
all persons engaagedl in the industry, however comnpenrsate~d, except
a member of the industry.
SmarToN 4. The term. employer as used herein includes anyone
byi wmhomn such employee is compensa.ted or employed.
,SEC`TIONh 5. The terms ]Presid~ent," "AcLt and "Administrattor "
as used her~ein~ mean respectively the President of the United Stat~es,
TPitle I of the Nlratiornal I~ndustrial Recovery Act and the Administral-
tor for I[ndustrial Recovery.
ARTCLE II -110URms
SECTION. 1. No employee shall be permitted to work: in excess of
forty (40) hours in one week: or eight (8) hours in any twenty-four
(24) hour period (beginning a~t midnight) except as herein other-
wise provided. A normal work day shall not exceed eight (8)
hours; provided, however, in case of peak or seasonral d'emandls, that
employees mnay work forty-eight (48) hours per week for a period
not to exceedl four (4) weeks in anly six month's period; and pro-
vided further that at least time and one-half is paid for all hours
worked in -excess of forty (40) per weekr and eight (8) per dlay.
SECTION 2. The provisions of this Article shall not apply to:
(a) Persons emploryed in a managerial or executive caLpacityF who
receive thirty-five dollars ($35.00) or more per weetk nor to outside
(b) Employee~s engaged in emergency maintenance or emergency
re~pair work, provided that such employees shall receive one and one-
hialf times th~e normal rate of pay for all hours worked in excess of
forty (40) per week~.
(c) W~atchmen whoe may be permitted to work a maximum of
fi~fty-six (56) hours per week, provided, however, that they be given
one day off in each seven day period.
(d) ~Engineers who may be permitted to workr a maximum of
forty-five (45) hours per wveekr.
SECTION 3. No employer shall. permit anyT employee to workr for
any time, which, when totaled with. that already performed for an-
other employer or employers in this industry exceeds the maximum
ARTCnLrE I17- ~CAGES
SECT`ION 1. No male employee shall be paid in any pay period less
than at the rate of twenty-seven and one-half (274/) cents per hour,
and no female employee shall be paid at any- pay period less than
at the rate of twe~nty-two and one-half (22f/) cents per hour.l
SECTION 2. This article establishes a minimum rate of pay which
shall apply, irrespective of whether an employee is actually com-
pensated on a time rate, piece work or other basis.
SECTIONJ 3. Fiemln~e employees performing ubstantially the samie
wCork as male employees shall rce~ive the same rate of pay as male
SECTIOk 4. Equitable and reasonable adljustments of pay schedules
of employees receiving above the minimum shall be made within
thirty (30) days after the effective date of this Code by any em-
ployer who has not heretofore made such adjus~tmients. The first
report of wages required to be ~filed under this Code shall contain
all wage increases made since Many 1, 1933.
ARTICLE V- -ENERAL Lanon PR(onsio)NS
SECTION 1. No person under, sixteen (1~6) years of age shall be
employed in the Corn Cob Pipe Manufacturing Industry. No per-
son under eighteen (18) years of age shall be employed at operations
or occupations which are hazardous inl nature or dangerous to health.
T'he Code Authority shall submit to the Administrator before sixty
(60) days after the effective date of this code, a list of such opera-
tions or occupations. In any State an employer shall be deemed
to have complied with this provision as to age if he shall have on
file a certificate or permit duly signed by- the Authority in such State
empowered to issue employment or age certificates or permits shLowC-
ing that the employee: is of the required age.
SurrIoN 2. (at) Employees 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 e~m-
ployers of labor or their agents in thze designartion of such repre-
setntatives or in self-organization or in other concerted activities for
the purpose of collective~ bargaining or other mutual aid or
1 See paragraph 2 of order approving this Code.
(b) No employee and no one3 seeking employment shall be required
as a condition of emp~loymnent to join anyr campany umion or to re-
frain from inoming, orgamizing, or assistingr a labor organization of
~his own chioosing, andc
(c) Employers shall comply with the maximurm hours of labor,
minimum r~ates of pay~3, and other conditions of employment ap-
proved or pre~scr1ib~ed- by the Precsident.
SECTION 3. No employer shall reclassify e~mployees or duties of
occupations p~erfonrmed or engage in any: other subterfuge for t.he
urpose of defeating the purposes or provisions of the Act or of thris
ode.TO4 ~r\ mlyrsalpo\iefrte~ e~adha
SETO 4 vr employers shal rvdefo the safetyand hl~ ftrereporealth
of employes durin af thehor and pelh hlae ofnit~e, b ther emp oymen
Standards for safet aCdnd health shalln b~e sumitte bythe Code
Authorecivdty tof thes Admiitao iti he onh fe h
effctiveO dat Nofpbiso this Code.salspree n Sago
SiedecroN 5. Noic proision isn this odesal uersedoe atigny Stae ore
Federal Law whi impse on employee, aes ors more s\tOBringeto rnequre
menlts as toage of geemploes woknges houriis ofa work?, or o safety,
SECTION 6j. Atll employers shall post and keep posted copies of this
.Code in conspicuous places accessible to all employees. Every mem-
ber of the industry shall comply with all rules and regulations rel-
ative to the posting of provisions of Codes of Fair Comp~etition which
may~ from time to time be prescribed by the Admlinistra~tor.
SEems~lh 7. Anl employer shall make payment of all wages du~e in
lawful currency or byr negotiable check, th~erefor, payable on d3e-
mland. These wages shall be ~exempt from. any paymen"Itsj for pen-
sions, insurance, or sick: benefits other than, those voluntar~ily~ paid.
by t~he wage earners, or required by State law~s. Wages~ shall be
paid at least at the end of every two weeks per~iod, and salaries at
least at the end of every month. No employers shall w-ithholdl wages.
SE;CTION 8. No employee shall be dlismised by reason of making
a complaint or giving ev-idence with respeect to a violation of this
ARTICLE VI--ORGANIZNTION, POWERS, AND EUTI[ES OF THIE CODE ,
SECTION 1. A Code Authority is hereby established consisting of
thrree (3) persons to be selected from thle Corn Cob Pipe Alanufac-
turing Industry by a fasir method of selection approved by the
SECTION 2. In addition to mlembership as above provided there
mayn~ be three (3) mIemnbers without vote to be k~nowfn as Adminis-
tration Miembers to be alppointed by the Admninistrator to serve ~for
such terms as he mnay specify~.
SECTION 3. Eaich industrial association directly or indirectly par-
ticipating lin the selection or activities of the Code Authorityp shall
(1) impose no inequitabole restrictions on memnbership, andi (~2) sub-
mit to the Administrator true: copies of its arti~cl:es of association,
by-laws, regulations, and any amlendmlents when made thereto, to-
get~her with such other information as to mlembePrship, organization,
and activities as th~e Administrator may dleemn necetssaryr to fciictuatee
t~he purpose of the .Act.
SECTIN Q. Ill Order that th~e Code Aluthority shall at all times
be truly represientative of the indlustry and in other respects comllply
w~ith the provisions of thie Act, the Adminis~l~traor may prlescr~ib e
such iear-ings as he may deem proper; and thereafter if he slhall find
that the Code Aiuthority is nlot truly: represenltative or does not in
other :resp~ec~ts comply with the pr'ov1isions of the Act, may require
an app~opria~te modification in the method of selection of the Code
A uthori ty.
SEenox~ 5. Nothing conltainled in this Ctode shall constitute th-e
members of the Code Auth~orityS partners for an~y p~urpose.t` Nor
shall any memnber of thea Code A~uthority be liable in any manerlc
to anyone for any act of any other mlember,1 officer, agent or e~p~loyee
of the Code Authority. NTor shall any memnber of the Code Author-
ity, exer~cising It1creasnable diligence in the conduct of his duties
hereunder, be liable to anyone for anyJ actir>n or omlission to no1t
under this Code, except for his ow~n wcsillful malfeasance or
nlon fensa nce.
SECTIO9N 6. If the Admin~ist rntor shall dletermli ne thzat any ac~t ic-n
of a Code Author~itpy or any a3gency thereocf mnay be un~fair or unju~st
or contrary to the public interest, the Adm~iniist ratlor many require
that such action be suspended to afford an opportunity for investi-
gation of the merits ofsuch action andr further Ccons.ilderationo by
such C'ode Authority or agency pending final action which~ shalll not
be effective unless the Ad~ministrator auplrovecs, or unless he shlall fail
.to dlisap-prove after thirty (30) days' notice t~o him of inlten!tion to
p~roceedt with suchl action mn its original or modlifiedl forml.
SECTION. 7. Poffer8 and Duf i.r.-Subjelct to such rules; and. reenlla-
t~on a mybe issued~ by the Adlministrator,,~ the Code Aulthllo-i:y
shall hae te followng powers and duties. in addition to thos-;e
authorized by other provisions of this Code.
(a) To insure the execution of the provisio~ns of thli- Code and to
p~rovide for the compliance of th~e industry with th~e provisions of
(b) To adopt by-la.ws and rules and regulations for its procedure.
(c) To obtain from members of thne industry such inlforma~ltio~n and~
reports as are required for the admlnl~i-tr~ation of the Code. In
edition to information reqluired7 to be su~bmlitted~ to the Code Au~tholr-
ity, mlemblers of the ind~ustr~y subjct to this Cod~e shall furnishr such
statistical information as thetrt Adm~~inistrat!or may deem necessllary for
the purposes recited in Section 3(a) of the Act; to such Federa~l atnd
State agencies as he may designated; provided that nothingr in this
Code shall relieve any member of the industry of any exist~ing obli-
gations to furnish reports to anry G-overnm~ient Agaency. No indli-
vidual rep~or~t shall be disclosed~ to any other memb>cr of thle induls-
try7 or any other party except to such other Governmental agencies
as may be directed by the AC~dministrator.
(df) To uset such trade associations and other agencies as it deems
proper for t~he carrying out of any of its activities pIrov-ided~ for
herein. provided that nothing herein shall reliev-e the Code Authority
of its duie or responsibilities under this Code and that such trade
associations and agencies shall at all times be subject to and comply
wcith the provisions hereof.
(e) To make recommendations to the~ Admninistrator for the co-
ordmnation of the administration of this Code with such other Codes,
if anyg, as may be related to or affect members of the industry.
(f) (1) It being found necessary in order to support the Admin-
istration. of this Code and to maintain the standards of fair com-
petition established hereunder and to effectuate the policy of the
Act, the Code Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregomng purposes and to meet such obligations
out of funds which may be raised as hereinafter provided:je
(b) T~o submit to the Admninistrator for his approval, subjc
to such notice and opportunity to be heard as he mnay deem
1. An itemized budget of its estimated expenses for the fore-
gomng purposes, and
2. An equitable basis uponz which the funds necessary to
support such budget shall be contributed by members of the
(c) A~fter such budget and basis of contribution have been
approved by the Administrator, to determine and obtain equit-
able contributions as above set forth, by all members of the
industry, and to that end, if necessary to institute legal pro-
ceedings therefore in its owJn. name.
(2) Each member of the industry shall pay his or its equitable
contribution to the expenses of the maintenance of the Code Authlor-
ity, dettermined as hereinabove provided, and subject to rules and
regulations pertaining thereto issued by the Administrator. Only
members of the industry complying with the code and contributing
to the exrpe~nses of its administration. as hereinlbefore provided (unless
duly exempted from making such contributions) shall be entitled to
participate in the selection of members of thec Code Authority or
to receive the benefits of any of its voluntary activities or to m~aket use
of any em~blemn or insignia of the National REecovery Administration.
(3) The Code Authority shall neither incur nor pay any obliga-
tion substantially- inl excess of the amount thereof as estimated in its
approved budget, and shall in no event exceed the total amount con-
tailned in the approved budget, excelpt upon, approval of the Admin-
istrator; and no subsequent budget shall contain any deficiency itemn
for expenditures in excess of prior budget estimates except those
which the Atdministrator shall have so approved.
(g) To recommend to the AL~dministrator any action or measures
dlee~med advisable, including further fair trade practice provisions
to govern members of the industry in their relations with each other
or with other industries; measures for industrial planning, and sta-
bilization of employment; and including :modlifications of this Code
wIhich shall become effective as part hereof upoli approval by the
ALdministrator after such notice and hearing as he may specify.
(h)" To appoint a Trade Practice Committ~ee which shall meet with
the Trade Practice Conmmittees appointed under such other codes
as may be related to the inldustry for the purpose of formulating
fair trade practices to govern the relationships between employers
under this code and under such other codes to the end that. such fair
trade practices mlay be proposedl to the Admrinistrato~r as amiendmentsit
to thiis code and such other codesI~.
(i) To provide appropriate facilities for arbitration, andl subject
to the approval of the Admninistrator,, to prescribe rules of pr~oc~edure
and rules to effect compliance with awards and dletermlinationis.
AlRTICLE VTI---COST AccocINTIK o BPII PI:uCES
SECrTONv 1. TIhe Code Authority shall cause to be formulated meth-
.ods of cost finding a7nd accounting capable of use byal mmbr
of the industry, and shall submit such melthlods to theAmiitao
for review. If approved by the Adtministr~ator, full informa!n~t ionl
concerning such methods shall be made available to all members~l- of
thae industryt. Thereafter, eanch memberl(~l of th~e industry shall utilize
siuch methods to the extent found practicable. Nothing hiere~in con-
t-ained shall be construed to permiit the Code Authrorityr, any agent
thereof, or any member of the industry to suggest uniform additions,
perlcentages or dliferentials or other uniform items of cost which. are
designed to bring1 about arbitrary uniformity of costs or prices.
SCECTI~ON 2. (a) Wilfully destructive p~ric~e cutting is an. unfair
mnethlod of competition and is forb~idd~en. Any memllber of thte in-
dustry or of any other industry or the customers of either may at
any time comnplain to the Code Au~thorityS th~at any prrice conlst-itutes
unfair competition as d~estructive pric~e cutting, imper~iling small
enterpriseF or tendringr toward monopoly or the .impairmenlt of code
wages and working conditions. Thte Code Authori'ty shall within 5
days afford an opportunity" to thle mlemnber quoting the price to
answer such complaint and shall wiithin 14 days m~akie a ruling or
adjustment thereon. If such ruling is not concurred in by either
party to the comnplaint, all papers shall be~ referred to the REese~arch
and Planning Division of N.R.A. which shall reder a report and
recommlendaltion thereon to the Admiinistrator.
(b) When no declared emergency exists as to any given product,
there is to be no fixedl minimnumc basis for prices. It is intended that
sound cost es~timat~ing methods should be used and that co(nsideratinto
should be given, to costs in the determzinatio~n of pr~ic-ing policies.
(c) W~hen an emetrgencya exists as to any given! proc-duct, sale be-
low th~e stated minimr~um price of such product, in violation of Sezc-
tion 2 hereof, is forbidden.
SECTION 3. (a) If the Administrator, after investigation shall at
any time find both (1) that an emergency has arisen within the in-
dlust~ry adversely affecting smasll enterprises or wa~gr(s or labor con-
ditions, or tending toward monopoly or other acute conditions which
tend to defeat the purposes of the Act; and (2) that the de~termlin~-
tion of the statedt mlinimnum price for a specified product within the
industry for a limited~ period is necessary to mitigate the conditions
constituting such emergency and to effectulate the purposes of the
Act., th~e Code Author~ity may cause ant impartial agency to investi-
gatte costs and to recomnmendl to the Admrinistrator a dtuelterination
of the, st~atedl minimumr price of thte prodluc~t affected by the emer-
gency and- thereupon the Ad:minlistrator may proceed to detterminee
such stated minimnumm price.
~(b) WFhenr the Administrator shall have determined such stated
miimum price for a, specified product for a stated period, w~thich
price shall be reasonably calculated to mlitigate the conditions of
such ene~rgaency and to effectuate the purposes of the National Re-
covery Act, he shall publish such. price. Thereafter, during such~
stated period, no members of the industry shall sell such specified
products at a nret realized price below said stated minimum price
and any such sale shall be deemed dest ructive price cutting. From~
time to time, the Code Authority may recommend review or recon-
sideration or the Administrator mzay cause any determinations here-
under to be reviewed or reconsidered and appropriate action taken.
ARTICLEL VIIT-TRAD1E PRACTICE RULES
SECTION 1. No member of the industry shall publish advertising
(whether printed, radio, display or of any other nature), which is
misleading or inaccurate in any mnaterial particular, nor shall any
member in any way misrepresent any goods (includinE! but without
limitation its use, trade mark, grade, quality, origin, size, substance,
character, nature, finish, material, content or preparation) or credit
terms, values, policies, services, or the nature or form. of the busi-
rSECTION 2. No member of the industry shall knowtingly withhold
from or insert in any quotation or invoice anly statement that makes
it inaccurate mn any material particular.
SECTION. 3. No member of the industry shall brand or mark or
pack any- goods in anly manner which is intended to or does deceive
or mislead purchatsers with respect to the brand, grade quality,
quantity, origin, size, substance, character, nature, fnsmaterial
content or preparation of such goods.
SECTION 4. No member of the industry shall defame a competitor
by falsely imputing to him dishonorable conduct, inability to per-
form~ contracts, questionable credit standing, or by other false repre-
sentation, or by falsely disparaging the grade or quality of his goods.
SECTION 5. No member of the industry shall publish or circulate
unjustified or unwarranted threats of legal proce~edings which tend
to or have the effect of harassing competitors or .intimilat~inga their
SECTION 6. Nro member of the industry shall offer or makze any
payment or allowance of a rebate, refund, commission credit, un-
earnled discount or excess allowance whether in. the forma of money
or otherwise, nor shall a member of the industry offer or extend to
any customer any special service or privilege nlot extended to all
customers ofJ the samet class, for the purpose of influencing a sale.
SECTION 7. ~No members of the industryT shall give, permit to be
give, or offer to give, anything of value for the purpose of in-
fluencing or rewarding the action of any employee, agent, or repre-
se~ntative of another in relation to the business of the employer of
such employee, the principal of such agent of the represented party,
without the knowcPledge of su~ch employer, principal or party. This
provision shall not be conlstrued to prohibit free and general distri-
bution of articles commonly used for advertising except so far as
such articles are actually used for commnercial bribery as hereinabove
SECTION 8. No member of the ind~ustry shall wF~ilfully induce or
attempt to induce thfe breach of exissting contracts betweenI com-
petitors and t~heir c~utomers by any false or deceptiv~je .means, or
int~erfere with or` ob~struct the per~folrman~c~e of any such contractual
duties, or service by anly sulch means1, with the purpose anld effect
of hamnpe ri ng, injuIIring~r or embarrassing competitors in their bu Lsinests.
SECTION 9. No member of the ind~ustryS shall require that the pur-
chlase or lease of any goods be a pretrequ~isiti e to the p~urchrase or lease
of any other goods.
AnnousTC; I~X-ExonT TRADE
SECTITON 1. NoC provision of this Clodec relatingr to prices or tcrmns
of selling, shipping, or marketing shall apply to export trade or
sales or shipments for export trade. ExPport Trade "shall be as
defined in the Expo~rt Trade Act adopted ~April 10, 19318.
SECTION 1. This Code,, and all the provisions therleof are expressly
made subject to the right of the President in accordanc~e with the
provisions of subsection. (b) of Section 10 of the Act from time
to time to cancel or modify any order, approval lic~ense1, rule or
regulation issued under said Act.
SECTION 2. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes in circumn-
stances, such modifications to be based upon application to the Ald-
ministrator and such notice and hear~ingr as he shall specify, and to
become effective on approval of the President.
AuRTCLE XI -MONOPOLIES
SECTION 1. No provision of this Code shall be so appliedl as to
permit monopolistic practices, or to eliminate, oppress, or d'iscrimn-
inlate against small enterprises.
AnRTIcLE XF~II-PRICE INCRnEASES
SEC.TION 1. WhOraS the policy of the Act to increase real pur-
chasing power will be made more difficult of consummation if prices
of goods and services increase as rapidly as wagess it is rerrconized
that price increases except such as may be required to meet in-
dividual cost should be delayed, bult when moade such increases
should, so far as possible, be limited to actual additional increases
in the seller's cost.
ARTICLE XIITI -FFECTIVE DATE
SIECTIONP 1. This Code shall become effective on the second M~onday
after its approval by the President.
Approved Code No. 498.
RegistryT No. 1831l-O1.
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