For sale by the Superintendent of Documents, Washington, D.C. Price 5 center
Approved Code No. 466
Registry No. 1615--30
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
RETAIL TOBACCO T-RADIE
AS APPROVED ON JUNE 19, 1934
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Approved Code No. 466
CODE OF FAIR COMPETITION
RETAIL TOBACCO TRADE
As Approved on June 19, 19341
CODE OF FATR COMPETITION FOR THE RETAIL TOBACCO TRADE
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the R~etail Tobacco Trade, and hearings
having been hleldi thereon and the Ad~:minist~rator having rendered
his report containing a~n aznalysis of the said Code of Fair Competi-
t~ion together with his recomimendations and findings with respect
thereto, and the Administrator having found that the said Code of
Fair Competition complies in all respects with the pertinent pro-
visions of Title I of said Act, and that the requirements of clauses
(1) and (2) of subsect.ioni (a) of section 3 of thle said Act have been
NOW~I, THEREFORE, I, Franklin D. Roosevelt, President. of the
United States, p~ursuant to the authority vested in me by Title I
of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve the report, recommendations,
and findings of the Aldministrator and d-o order that the said Code
of Fatir Comnpetition be and it. is hereby approved, and shall become
effective on th~e date of this Order; subject, however, to the following
(1) That the provisions of Part I of Article VI and of Schedule
I--the Cigar M~erchandising Plan--be stayed and shall not become
effective until M~onday, June 95, 13341.
(2) That thie waiting periods of five and three dars contained
in Schedule I, Part A, Section 1, and in Schedule I, Part B, Sections
1 and 2, respectively, be stayed and shanll not become effective, not-
withstanding said cigar merchandising plan become effective, until
the further order of the Admninistrator.
68842 *-6 57-125--34---1 (35)
(3) That all provisions for t~he, filing of prices and discounts in
said cigar merchandising plan be st.ayedi until arrangements satis-
factory to the Admiinistrator, are iniade for confidential 'treatment
and for simultaneous dlistribution thereof to all members of the
trade and customers willing to payr the cost thereof.
(4) That t~he preamble and Sections 1, 2, 3, 4, and 6, Part II of
Article VI be stayed and that the trade accept in place thereof, the
"'As to cigars, with respect, to which the provisions of Part I or
Schedule I shall not at the time be operative or shall be stayed, and
as to cigarettes, smoking tobacco, chewing tobacco and snuff, the
standards of fair competition for the trade with reference to pricing
practices are declared to be as follows:
SECTION 1. (a) W!ilfully destructive price cuttings is an unfair
method of competition and is forbidden. Any member of the trade
or of any other trade or industry or the customers of either may,
at any time, complain to the Code Authority that any actual price
constitutes unfair competition as destructive price cutting, imper-
iling small enterprises or tending toward monopoly or the impair-
ment of code wages or working conditions. The Code Authority
shall, within five days, afford an opportunity to the member making
such price to answer such complaint and shall, within fourteen days,
make a ruling or adjustment thereon. If such ruling is not con-
curred in by either party to the complaint, all papers shall be re-
ferred to th~e Research and Planning Division of NRA, which shall
render a report and recommlendation thereon to the Administrator.
"(b) Wh~2en no declared emergency exists as to such products or
any specified part thereof, there is to be no fixed minimum basis for
It. is intended that sound cost estimating methods should be used
and that consideration should be given to costs (including costs of
retail distribution) in the determiination of pricing policies.
"(c) W:hen an emergency by reason of unfair competitive practices
or other conditions, exists in the trade as to such products or any
specified part thereof, sale below the stated minimum price of such
p products or such specified part thereof, in violation of Section 2
hereof, is forbidden.
SECTION 2. Emergency Pr~ovisions
"(ar) If the Administrator, after investigation, shall at any time
find both (1) that an emergency has arisen within the trade, ad-
versely affecting small enterprises or wages or labor conditions, or
tending toward mionopoly or other acute conditions which tend
to defeat. the purposes of the Act.; and (2) that the finding of a
basis for dletermininig minimum prices for such products or any
specifiedl part thereof is necessary for a limited period, to correct
the conditions constituting such emergency and to effectuate the
purposes of the Act, the Code Authiority may cause an impartial
agency to investigate costs (including the costs of retail distribu-
tion) and to recommend to the Administrator a basis for determining
minimum prices of the said products or the said speci~edl part thereof
affected byv the emergency, and thereupon the Admlinistrator may
p~roceedi to fix a basis for determining such minimum prices.
"'(b) W~hen the Administrator shall hlave fixed a basis for deter-
minlng minimum prices for the said products or said specified part
thereof for a-stated period, which prices shall be reasonably e~Bca lcu-
lated to correct the conditions of such emergency and to efcut
the purposes of the Act, he shall publish the said basis. Thereafter,
during such stated period, no member of the trade shall sell such
products at a net realized price below the minimum price determined
upon the basis so fixed, and any such sale shall be deemed destructiveo
price cutting. Fcrom time to time, the Code Authority may recom~-
mend review or reconsideration or the Admninistrator may cause
any determination hereunder to be reviewed or reconsidered, and
apSprpriate action takenn"
(5)That the provisions of A~rticles III and IV shall be and the
some hereby are stayed until, and shall become effective on, M~onday,
June 25, 1934.
FRANKLIN D. RO)SIEV;ELT.
Approval recommended :
HUGH- S. JoHNSON,
THE ~THITE HOUSE,
Ju~ne 19, 1934.
LETTER OF TRANSMITTAL
The White House.
Smz: A Public Hearing on a Code of Fair Competition for the
Wholesale and Retail Tobacco Distributing Industry, submitted by
the National Association of Tobacco Distributors, Inc., and the Re-
tail Tobacco Dealers of America, Inc., was held in Washington, D.C.,
on the 15th and 16th of December, 1933, in accordance with the pro-
visions of the National Industrial Recovery Act, pursuant to Notice
of Hearing signed by the Secretary of Agriculture under Executive
Order of June. 26, 1933. By Executive Order of January 8, 1934,
jurisdiction over that C~ode was transferred to the Administrator for
The original Code has now been divided into separate. codes: this
Code and the Code for the Wholesale Tobacco Trade. Thle sepa-
ration was made because it was thought that the divergent problems
of these trades could be more conveniently handled in this way.
In all other respects t~he post-hearings revisions have been minor,
and the provisions of this Code, as submitted for your approval, are
substantiated by the official record of the Public Hearing, informa-
tion and facts in filed briefs, or as a result of Post-Hearing confer-
enices held with the Codle Committee.
ECONOMIIC EFFECT OF THIE CODE
The Association claims to represent more than 200,000 retail estab-
lishmients comprising cigar stores, drug stores, confectionery stores,
news dealers, and others who deal in and are responsible for annual
sales of tobacco products in excess of $1,300,000,000, with an aggre-
gate invested capital of approximately $~300,000,000. It is the fur-
ther claimn of the Association that the sale of tobacco products by
members of the Association is approximately 80 percent of the total
Sales of all tobacco products.
The retail sale of tobacco products takes place through many
diverse outlets. It is therefore difficult to obtain accurate figures to
show the full extent of this business. The Census of Distribution
for 1929 which regards only those stores as tobacco outlets whose
business is over fifty per cent in tobacco lines, shows that there were
approximately 33,000 such establishments employing 34,238 em-
ployees. The variance between these figures and those submitted
by the Alssociation, is presumably due to this difference in method
of computation. Due to the fact that they are the only official
figures available, they have been used by the Division of Research
and Planning in their report.
The Retail Tobacco Trade covers the retail distribution of cigars,
Ciga rettes, smoking tobacco, chewing tobacco, snuff, and other tobacco
The Association and the Research and Planning iiinaei
accord with the statement that 90 per cent of apll ~P~Ptn`eretail tobacco
establishments can be classified as independent one-store tobacconists
who account for two-thirds of all sales of tobacco products.
One of the outstanding features of the fair trade practice provi-
sions is the cigar merchandising plan, wFhich is also found in the
Wholesale Tobacco Code and the Code for the Cigar M~anufacturing
Industry. It provides for the retail sale of cigars at prices not lessJ
than those declared by the manufacturer for each of his products,
and further prescribes maximum d-iscounts allowable by mianufao-
turers or wholesalers from those prices.
The retail dealers originated thlis plan, and it was proposed by them
to the wholesalers and cigar manufacturers. At the Public Hearing
on this Code it was supported by these three groups as wocell as by
representatives of tobacco grower~s. It now hacs the approval of the
Consumers Advisory Boardl, the Industrial Advisory Board, the
Labor Adlvisory Board, and the Legal Division.
It has long been a recognized customs of the industryJ for manufac-
turers to declare intended retail prices, and the internal revenue
taxes on cigars are computed on such a basis. The plan is basedl on
this custom, but free competition between manufacturers, as well as
the industry's recognition of the imperative need for retention of
the five-cenlt cigar, should serve to prevent increase in. prices.
The sale of "t long shot. cigars, induced by excessive discounts to
distributors has been an abuse of consumers which will be remedied
by the p-rovisions limiting t~he amount of such discounts. This plan
w~ill permit. eachi manufacturer to mnake the best possible cigar in
each price class.
At the same time the use of cigars as loss leaders by unrelated
business has placed a severe burden on p~ersons whose welfare de-
pendls on the tobacco business. It is hoped that the establishment
of minimum retail prices will stabilize emnploymnent for this large
class of persons who are, for the most part, small business mnen, de-
pendentt for their livelihood on this trade.
For further protection, Part II of Article V~7I in the proposed
Code provides that no retailer shall sell any tobacco products, which
are not, cov-ered by t~he mlerchlandisingi plan in Part I, below thne low-
est realsonable cost of the retail distribution of such tobacco products.
Such lowest reasonable cost, will be determinedl byT the Code Author-
ity withl the approval of the Admninist~rator. M~eanwFPhile the Ad-
ministrator may, in order temp-ora~rilyT to restriict destructive price
cutting, fix a basis for the computationi of t~he miinimum retail price
of these tobacco products other than cigars.
HOURS AN'D WAG\ES
B3y defining an establishment, as any store, shop, stand or other
place of retail business at which more than one-half~ in dollar volume
of sales mande consist of tobacco products, or at ~which the principal
line of business is the sale of torbacco products, the wage and hour
provisions are limited to such places of business.
W'ork hours and store hours are elective and, with the exception
of wages, the Labor Provisions conform substantially to the Labor
Provisions of the approved Codes of Fair Competition for the
Retail Trade and the Retail Drug Trade, respectively.
Minimum wage rates, established in the Code, are approximately
15 percent higher than the rates of wages now prevailing in other
The working hours are not entirely satisfactory from a, purely
social viewpoint; but they represent reduction from the hours which
prevailed in thp retail tobacco trade. Increased employment will
depend upon the store hours elected by the majority of the trade.
It is estimated that the minimum wage rates established in the
Code will result in an increase of approximately 10 per cent, in
the total payrolls of the trade.
The Division Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings 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 Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-:
vide for the general welfare by promoting the organization of inds
try for t.he purpose of cooperative action among trade groups, by
inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducig
and relieving unemployment, by improving standards of labor, and
by othlerwise rehabilitating industry.
(b) The Code complies in all respects with the pertinent provi-
sions of said Tit~le of said Act, including without limitation Sub-
section (a) of Section 3, Subsection (a) of Section 7, and Subsection
(b) of Section 10 thereof; and that the applicant association is an
industrial association truly representative of the aforesaid trade;
and that said association imposes no inequitable restrictions on
admission to membership therein.
(c) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(d) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(e) Those engaged in other steps of the economic process have not
been deprived of t~he right to be heard prior to approval of said
For the above reasons this Code is recommended for approval.
HUGH S. JoHNSON,
JUNrE 19, 1934.
CODE OF FAIR COMPETITION FOR THE RETAIL
To effectuate thle policies of Title I of thle National ]Indlustrial
Recovery Act, this Code is established as a Code of Fair Competi-
tion for thle Retail Tobneco Trade, and its provisions shall bre stand-
ards of fair competition for such trade and shall be binding upon
every member thereof.
As used in this C~ode, t~he following w~or~ds andl phrases shall be
defined as follows:
SECTION 1. The termi President means the President of the
United Sitates of Amrerica.
SECTION 2. The term "Administrator means the Adm~inistrator
for Industr~ial Recovery.
SECTION 3. The ter~m "Act "' means Title I of the National Indus-
trial Recovery Act.
SECTION 4i. The term "' tobacco products includes, without limita-
tion, all cigars, stogies, cheroots, little cigars, cigarettes, smoking
tobacco, chewing tobacco and snuff.
SECTION 5. The term "' retail tobacco trade' means and includes
all selling of tobacco products d-irectly to the consumer and not for
the purposes of resale in anyr form.
SECTION 6. The terms "' tobacco retailer ", "' retailer ", and mem-
ber of the trade mean any person engaged wTholly or partially
either as an employer or for his owFn account in the selling of to-
bacco products directly to the consumer andl not for purposes of
resale in any form.
SECTION 7. Th6 term "clgar manufacturer means and includes
any person engaged in the manufacturing into cigars of cured leaf
tobacco, stemmed tobacco, scrap, and/'or shredded filler.
SECTION 8. The term cigar means andl includes cigars, stogies,
cheroots and little cigars.
SECTION 9. The termi jobber means any wFholesale tobacco dis-
tributor w~ho buys directly from the manufacturer.
SECTION 10. The term "' sub-jobber "' means any wholesale tobacco
distributor w\ho purchases tobacco products from jobbers or jobbing
establishments of manufacturers instead of directly fro rnmanu-
(A person may be a jobber as to certain tobacco products and a
sub-jobber as t~o others.)
SECTION 11. The termn accredlitedl cigar jobber means any whole-
sale distributor of cigars w~ho maintains a sales organization and
688412"-- 57-,"-12 34---2 (41)
has an exclusive selling arrangement for a brand or brands of cigarst
for which he assumes the responsibility of promotion, distribution
and care in a definite territory assigned to him.
SECTION 12. The ter~m cigar service jobber means any whole-
sale distributor of cigars other than an accredited cigar jobber.
(A jobber ma~y be an accredited cigar jobber as to a certain brand
or brands and a cigar service jobber as to others.)
SECTION 13. The term chain of stores means a group of retail
stores having single ownership and maintaining one or more bona
fide central distributing depots from which individual units are
serviced, and also bona fide central buying, storing, supervising and
SECTION 14. 1110 term 'LrtS11 tObacco establishment or estab-
lishment means any store, shop, stand or other place of retail busi-
ness at. which more than one-half in dollar volume of the sales made
consists of tobacco products, or at which the principal line of busi-
ness is the sale of tobacco products.
SECTION 15. The terml employee includes any and all persons
engaged in the retail tobacco trade, however compensated, except a
member of thle trade.
SECTION 16. The term employer means any person by whom
any such employee is compensated or employed.
SECTION 17. The term executive "! means an employee responsible
for the mlanagemnent of a business or a recognized subdivision thereof.
SECTION 18. The term LL OutSide salesman means an employee who
is engaged not less than eightyS per cent (80%0) of his working hours
in selling outside the establishment, or any branch thereof, where
he is employed.
SECTION 19. The termn junior employee means an employee
under eighteen (18) years of age.
SECTION 20. The term "' apprentice employee means an employee
with less than two (2) months experience in the retail tobacco trade.
SECnON 21. The term outside delivery employee means an em-
ployee engaged primarily in delivermng merchandise outside the estab-
lishment where he is employed.
SECTION 22. The. term person includes all individuals Girms,
pa~rtnerships, unincorporatedl associations, corporations, and other
forms of enterprise.
SECTION 23. The term State means any State or Territory and
the District of Columnbia.
SECTION 241. The term South includes the following St~ates:
Vir;ginia, West V'irginin, Nort~h Carolina, South Carolina, Georgia,
Florida, Kientucky, Tennessee, Alabama, Mlississippi, Arkansas, Loui-
isiana, Oklahoma, New M~exico and Texas.
SECTION 25. Population for the purposes of this Code shall be
determined byv reference to the latest Census of the Unit~ed States.
SECTION 26. The tenn "ABssociation means Retail Tobacco Deal-
ers of America, Inc.
SECTION 27. The tenu Council "! means National Tobacco Coun-
cil, Inc., a New Y~ork Corporation, or such other agency as shall be
designated for the purposes of Schedule I, hereto attached, by the
Code Auth~orityv herebyv established and by the Code Authorit~ies for
the Cigar M~anufacturing Industry and the Wholesale Tobacco
IARrzcIa: IIII RETAIL STORE HOURS AND 110URS Or LABOR
SECTION i. Ba8ic Store Houlrs adnc HOUrS of Labor.--Each retail
tobacco establishment shall within two weeks following the effective
date of this Code elect to operate upon one of the following schedules
of store hours and hours of labor, and shall post and: maintain in a
conspicuous place in the store a copy of such election showing its
elected store hours and hours of labor, such posting to be in addition
to the requirements of Article V, Sections 10 and 11. of this Code.
GROur (A). Any retail tobacco establishment, may elect to remain
open for business less than fift.y-six (56) hours but not less than
fifty-two (52) hours per week, unless its store hours were less than
fift~y-two (2) hours prior to June 1, 1933, in which case such estab-
lishment sl all not reduce its store hours; except as herein otherwise
provided no employee of such establishment shall work more than
f~orty (40) hours per week, nor more than eight (8) hours per day
nor more than six (6) days per week.
GROUP (B). ALny retail tobacco establishment may elect to remain
open for business fifty-six (56) hours or more per week but less than.
sixty-three (63) hours per week; except as herein otherwise provided,
no employee of such establishment shall work more than forty-four
(44) hours per week, nor more than nine (9) hours per day, nor
more than six (6) days per week.
GROUP (C). Any retail tobacco establishment may elect to remain
open for business sixtyv-three (63) hours or more per week; except
as herein otherwise provided, no employee of such establishmnten
shall work more than forty-eight (418) hours per w~eek, nor more
than tenGo (10) hours per day, nor more than six (6) days per week.
GROUP D). In place of any of the foregoing schedules, any retail
tobacco establishment may elect to remain open for business seven
(7) days a week for a total of eighty-four (84) hours or more per
week, but on no day for less than eight (8) hours; except as herein
otherwise provided, no employee of such establishment shall work
more than fift~y-six (56) hours per week, nor more than. ten (10)
hours per day, nor more than six (6) days in any consecutive seven
No employee shall work for two or more establishl~mens a greater
number of hours, in the aggregate, thaln he would be permitted to
work for that one of such establishments which operates upon the
lowest schedule of working hours.
SECTION j9. NO O~lee emnployvees shall work more than forty (40)
hours per week, nor more than eight (8) hours per day, nor more
than six (6) days per week except that two such employees in each
establishment may be permitted to w~orkz not in excess ofY fort~y-eight
(48) hours per week.
SECTION 3. No retail tobacco establishment may change from the
Group in which it has elected to operate except upon December 31,
of every year.
Any retail tobacco establishment may at any time, however, in-
crease its store hours, provided it maintains the basic work week of
the Group in which it originally elected to operate.
2 Effective June 25, 1934. See? paragraph 2 (5) of order approving this Code.
Any retail tobacco establishment may, for a period not to exceed
three months during the summer, temporarily reduce its store hours,
but t~he weekly wages of employees shall not on that account be
SECTION 4 Executives who earn not less than $30.00 per week,
and outside salesmen, mnay be permitted to work in excess of the
maximum hours provided in this Code.
SECTION 5. Outside delivery employees may be permitted to work
not in excess of forty-eight (4i8) hours per wveek and not in excess of
ten (10) hours per day.
SECTION 6. For a period not to exceed two (2) weeks in the cal-
endar year, an employee whose basic work week is forty (40) hours
may wPork not more than forty-eight (48) hours per week and nine
(9) hours per day; an employee whose basic work weekr is forty-foulr
(44) hours may' w\ork not more than fifty-twfo (52) hours per week
and nine and one-half (9%,!) hours per day; an employee whose basic
work week is fortyl-eight (48) hours may work not more than fifty-
six (56) hours per week and ten (10) hours per day. All such work
miay be without payment of overtime.
SECTION~ 'i. On one dayI each week employees may work one extra
hour, but such hour is to be included within the maximum hours
permitted each week.
SECTION 8. The hours worked by an employee during each day
shall be consecutive, provided that an interval not longer than one
hour may be allowed for each regular meal period, and such interval
not counted as part of t-he employees' working time.
ARTICLE I1- 17~AGES OF EMPLOYEES OF RETAIL TOBACCO
SECTIlON 1. The minimum weekly rates of wages which shall be
paid to emlployees of retail tobacco establishments for a~work week
as specified in Art~icle III whether such wages are calculated upon
an hourly~, weekly, monthly, commission, or any other basis, shall
except as hereinafter providedi be as follows:
(a) Wlithin cities of over 500,000 population, no employee shall
be paid less than at the rate of $15.50 .per week for a forty (40)
hour work week, nor less than at the rate of $16.00 per week for
a forty-four (44) hour work week, nor less than at the rate of $16.50
per week for a forty-eight (48) hour work week, nor less than at
the rate of $;17.50 per week for a fifty-six (56) hour work week.
(b) WVithiin cities of from 100,000 to 500,000 population, no em-
playee shall be paid less than at the rate of $14.50 per week for a
forty (40) hour work week, nor less than at the rate of $15.00 per
week for a for~ty-four (44) hour wvork w~eek, nor less than at the
rate, of $15.50 per week for a forty-eight (48) hour work week, nor
less than at t~he rate of $16.50 per week for a fifty-six (56) 'hour
(c) WVit~hin cities of from 25,000 to 100,000 population, no em-
ployee shall be paid les~s than at the rate of $13.00 per week for a
forty (40) hour work week, nor less than at the rate of $13.50 per
week for a forty-four (44) hour work week, nor less than at the
20tective June 25, 198)4. See paragraph 2 (5) of order approving this Code.
rate of $14.00 per week for a forty-eight (48) hour work week, nor
less than at the rate of $15.00 .per week for a fifty-six (56) hour
(d) WVithin cities, towns, villages of from 2,500 t~o 25,000 popu-
lation, the wages of all classes of employees shall be increased from
the rates existmyg on June 1, 1933, by not less than 20 per cent,
provided that this shall not require an increase in wages to more
than the rate of $11.50 per week, andl proviided further that no
employee shall be paid less than at t~he rate of $11.00 per week.
(e) Within towns, villages and other places with less than 2,500
population, the wages of all classes of employees shall be increased
fromt the rates existing on June 1, 1933, byl not less than twenty per
cent (20%), provided that this shall not require an increase in wages
to more than the rate of $10.00 per week.
SECTION 2. The minimum wages p~aid to outside salesmen and
outside delivery employees shall be upon the basis of the basic em-
ployee work week upon whlich the establishment by which they are
employed has elected to operate.
SECTION 3. In the South all minimum wages specifiedl in Section 1
of this Article may be at t~he rate of $1.00 less per w7eek.
SECTION 4. No offce employee shall be paid less than1 at the rate of
$16.00 for a fortyr (40) hour wTork weeki.
SECTION 5. Offce boys and messengers may be paid $2.030 per week
less than the minimum wage rate provided in Section 4 of this
Article, provided that where there is more than one such office boy
or messenger not more than ten per cent (10%0) of the total number
of office employees shall be! so paid.
SECTION 6. JunlOr employees, other than office boys and messen-
gers, may be paid for the first six (6) months of their employment
at the rate of $2.00 less per week than the minimum wage otherwise
applicable; apprentice employees, other than office boys and mnes-
sengers, may be paid at the rate of $1.00 less than the minimum wage
otherwise applicable. The number of employees classified as junior
and apprentice employees combined shall not exceed a ratio of one
such employee to every five (5) employees or fraction thereof up to
twenty (20) or more than one such employee for everyr ten (10)
employees above twenty (20).
SECTION 7. The weekly wages of all employees receiving more than
the minimum wages specified in this Article shall not be reduced
below the rates existing on June 1, 1933, nothwithstanding any
reduction in the number of working hours of such employees.
SECTION 8. A person whose earning capacity is limited because of
age or physical or mental handicap or other infirmity may be em-
ploy~ed on light work at a wage below the minimum established by
this Code if the employer obtains from the authority designated by
the United States Department of Labor, a certificate authiorizing
such person's employment at such wages and for such hours as shall
be stated in the certificate. Each employer shall file monthly with
the Code Aut~hority a list of all such persons employed by himn, show-
ing the wages paid to, and the mlaximum hours of wvorki for such
A~mazz V--GENERALU Laeon Pnovrsrows
SECTION 1. Employees shaHl have the right to organize and bargain
collectively through representatives of their own choosing, and shal
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
SEcTION 2. No employee and no one seeking employment shall be
required as a condition of employment to join any company union
or to reframn from 30mning, organizing or assisting a labor orgamiza-
tion of his own choosing.
SETION 3. Employers shall comply with the maximum hours of
labor, minimum rates of pay and other conditions of employment,
approved, or prescribed by the President.
SECTIONr 4. No person under the age of sixteen (16) years shall be
employed in the retail tobacco trade, except that persons fourteen
(14) and fifteen (15) years of age, being members of the family of
an individual retailer, may be employed by that retailer, either
(Bl3a) p werofor a period of not to exceed three (3) hours per day on six
(6) day pr wne a ek: or k uhdyno oece igt()h
(b) fotr ose, dayerwek such dayr nf otk toa excetedeigh (8 hour. n
In either can seall sutch ours of w ork shaemll e eteens 7or A.M andsho
SP.M.de~, and vr shall not conflic with the emlo ee' or of dayte school
perovided, however, that no peierong uner theagde ofro eigtn 18
year h acll eepoedi eiein ecadsfo oo
vehTIcles. pro ne ihe (8 er a sl b
SECTIONd 5. No personte underk eigtee (1 eraris of age shall be
employdors bnnae pedermited to work atoeraltio Thore ocupthoios
shazar ous in nturte ordetrimenraltor heath.n iThe Co0dev Authority
shallv submte of thes Admina istraor, withi scuaixty (60) das after the
efective dat Epof th s Coeal lis ayet of scocu ation for hs approval.
ECreON 6 mlyr hl aepyeto l ae nlwu
curerenc or by negotiable checkr, payable on demand. All contracts
of emploment shall prescribe payment of wages at least every two
weeks and salaries at least as often as every month.
SECTION 7i. No provision in this Code shall supersede any State
or Federal law which imposes on employers more stringent require-
ments as to age of employees, wages, hours of worki, or as to safety,
health, sanitary or general workmyg conditions, or insurance or fire
protection, than are imposed by this Code.
SECTION 8. Employers shall not change the method of payment
of employees' compensation or re-classify employees or duties of
occupations performed by employees or engage in any other subter-
fuge so as to defeat the purposes of the Act or the provisions of this
SECTION 9. No employee paid at a rate in excess of the minimum
shall be discharged and reemployed at a lower rate of pay for the
pulrpose of evading the provisions of this Code.
SECTION 10. All employers shall post complete copies of the pro-
visions of thiis Code dealing with hours, wages and conditions of
employment in conspicuous places of easy and continuous access to
SECTION 11. Each member of t~he industry shall comply with such
rules and regulations with regard to the posting of. notices, bulle-
tins and extracts of Code provisions as may be from time to time
further issued by the Administrator. Such notices, bulletins and
extracts of Code provisions shall be written in English and such
other language as may be in general use throughout the est~ab-
SECTION 12. Every employer shall make reasonable provision for
the safety and health of his employees at the place anld during the
hours of their employment.
Standards for safety and health shall be submitted byv the Code
Authority to the Administrator within six months after thle effective
date of this Code.
SECTIO~N 13. After the effective date of this Code, wages shall be
exempt from fines and rebates; and from charges and deductions,
except charges and deductions for employees' contributions, volun-
tarily made by employees or required by law, for pension, insurance
or benefit funds. No employer shall withhold wages except upon
service of legal process or other papers lwfullyl requiiring such wilth-
Deductions for other purposes not heretofore state~d may be made
-only pursuant to a contract in writing and kept on file by th2e emn-
ployer for six months after the termination of the contract and
which shall be kept open for inspection of Government repr~esen-
SECTION 14. Female employees performing substantially the same
work as male employees, shall receive the same rate of pay as male
PA~RT I--CIGAR M\ERCHANDISING PLAN 2 8
The M~erchandlising Plan in Schedule I annexed hereto, adopted
for the Cligar 1\Ianufacturing Industry and for the Wholesale To-
bacco Trade in their respective Codes of Fair Comp~etition and here-
inafter for convenient reference in part repeated, is hereby accepted,
adopted and approved; and all of the provisions of the said plan
insofar as they purport to regulate the conduct of members of thre
retail tobacco trade are hereby made rules of fair practice and fair
competition for aUl members of the retail tobacco trade.
The provisions of said Schedule I and of this Article VTI may be
amended only by amendment of this Code and of the Codes for the
Wholesale Tobacco Trade and the Cigar Alanufacturing Industry.
The said provisions may at any time be stayed by the Administ~ra~tor,
of his own motion or on application by any interested party, and on
such notice and hearing, if any, as the Administrator may direct;
and said provisions shall automatically be stayed upon the election
of the Code Authority established by any~c one of said three Codes,
such stay to become effective, unless selection shall have been
meanwhile withdrawn, thirty (30) days after notice of such election
shall have been filed with the Administrator.
= Effective June 25. 1934. See paragraph 2 (1) of order approving this Code.
a Provisions for filing of prices and discounts staged until further orders. Bee
paragraph 2 (3) of order approving: this Code.
SEC;TION 1. In the case of all cigars purchased by retailers from
cigar manufacturers, jobbers, or sub-jobbers in connection with which
a retail price shall have been recorded by the manufacturer with the
Council, the retailer shall sell such cigars at retail at not less than
the retail price so recorded, provided, however, that (1) in the case
of the sale at retail of multiples of not less than ten units (except
in the case of cigars selling for less than ~fve cents (5# each) a dis-
count may be allowed of not more than five per cent (5%/;) from
the retail price, and (2) in the case of sales at retail of boxes of
twenty-five cigars or more a discount of not more than eight per
cent (8%0) from the retail price may be allowed unless the cigar
manufacturer shall record with the Council and mark a boat price
thereon involving a discount of less than eight per cent (8) in
which case the mlarked box price shall be observed as a minimum, and
(3) thle retailer may give not more than one pad of matches for
each unit sold, or five pads per box of twenty-five cigars or ten pads
per box of fifty cigars sold. In th~e case of any retailer granting a
cash discount upon all purchases made, any sales of cigars shall be
excluded in computing the cash discount to be allowed, or the amount
of cash discount shall be included in the price of the merchandise
sold in addition to the minimum prices herein provided.
SECTION L2. Upon any sale to a consumer, situated at the time of .
such sale in a State imposing a tax on tobacco products or the sale
thereof otherr than a tax payable by the manufacturer) the amount
of such tox, if not paid by the consumer, shall be added to the, mini-
mum price herein provided, whether the seller shall be located within
or without such State.
SECTION 3. Notwithstanding the provisions of this merchandising
plan any tobacco retailer may sell at less than the prices therein
prescribed merchandise sold as bona fide clearance or bona fide dis-
continued lines of merchandise or imperfect or actually damaged
merchandise or merchandise sold upon the complete final liquidation
of any business or merchandise donated for charitable purposes or
to uinemployrment relief agencies, provided that all such merchandise
shall be advertised, marked and sold as such and that a strip label
shall be placed across the inside lid label of box goods to be disposed
of, stating the reason the said merchandise is being sold below the
prescribed prices therefore and provided further that such moer-
chandlise shall be diisposed of pursuant to any regulation as to the
manner of such disposal as shall be issued by the Code Authority
subject to the approval of th~e Admlinistrator.
SECTION 4. Except as in this merchandising pla~n otherwise ex-
p~ressly provided wherever under any of the provisions of this mer-
chandising plan any cigar is required to be sold at retail at a mini-
mium price, such minimum retail price shall not be reduced directly
oridrectly or by any device or subterfuge such as the giving o
any trading or merchandise coupons, prizes, or premiums or any
other thing of value or discount, rebate, refund, commission, credits
or allowances whether in the form of money or otherwise; nor shall
any retailer offer or extend special service or privilege to any cus-
tomer which is not available to all customers.
SECTION 5. Upon the recommendation of the Code Authority estab-
lished by this Cobde, or the Code for the Cigar Manufacturing Indus-
try or the Code for the WVholesale Tobacco Trade or upon application
of any member of the cigar manufacturing industry or of the whole-
sale tobacco trade or of the retail tobacco trade and the ap~proval~
of such recommendation or application by the Adlministrator the
Code Authorities established by the said several Codes shall, upon
such notice and opportunity to be heard, if any, as the Administrator
may require, determine by joint action minimum dliscounts to be
prescribed in connection with sales of cigars by any member of the
trade, and such determination shall be effective only upon the con-
currence of all three Code Authorities and, subject to the further
approval of the Administrat~or, such minimum discounts shall be
binding upon all members of the trade.
SECTIQN 6. Any change in the retail price shall be applicable as
at the effective date of such change to all mnerchandise thereafter
sold by retailers.
SECTION 7. Nothing in this mlerchnndisinga plan shall be construledt
to prevent the free and general distribution of articles commonly
used for advertising purposes and premiums, except insofar as such
distribution or use of premiums would constitute, in effect, an addi-
tional discount or a reduction in price below t~he minima established
SECTION 8. AUl prices and discounts filed with the Council byi manu-
facturers, jobbers or subjobbers, as hereinbefore provided shall imme-
diately be reported by the Council to the respective Code Auxthorities
for the cigar manufacturing industry, the wholesale tobacco trade
and the retail tobacco trade. Each such Code Authtority shall cause
such prices and discounts to be made available to all members of its
respective industry or trade, and shall comply with any regulations
which may be issued by such Code Aluthority wit the. approval of
the Administrator as to the publication and- dissemuination thereof.
PART II-M~INI[3flTM PRICES FOR PRODUlCTS NOTI GOVERED BY THE PLAN
As to cigars wLith respect to which the prov1isions of P-art I or
Eched~ule I sh~ll not at the time be operlativet or shal be stayeld and
as~ to cigarettes, smoking tobacco, chewinblg tobacco and snuff-, the fol-
low0ing tradne practices shall b1e observed by all members of the retaril
Section 1~. NTo tobacco r~etaile~r sh~allZ at any time sell any such to-
bacco product below, the mer~ch~andisje cost thereof to such reta~iler.
For the pzlrposes of this Article the term7 "' mercla~nd~ise cost means
(1) actual net delivered cost less tradre di~scowrdrs, o~r culrr)enlt rep7lace-
ment cost, w~hichevrer is lower; and in additional thereto, (9) the
amout ofanytax on thre sale of the product directly paid by the
situated$ at the time of succh sale in. another ~State, an amoucnnt~ equlr~
to all taxces (other thanl tares paid di'rectly by the mnufac/cturer)
which wouldCI be included in the sale pi~ce of such pr~odutct were such
product bought from a retailer located in sulch Stante.5
Section R. Th~e Code Autholrity shall from time to timze upon such
notice and opportunity to be heard, if a~ny, as the Adm~inistrafo-r mayg
require, determine the lowest reasonablee cost of the retail d~i:stribu-
t~ion of tobacco products, such determination to be sztb jtct to the apr-
'Itallelzed_ words deleted. see paragraph 2 (4) of order approvi~ng this Code.
proval of the Admlinist~rator. In determining the lozoedt reasonable
cost of the retail dlistributi~on of tobacco products, no signilioodt
channel of distribution shall be excluded fromt consid~eration, upon
the ground that only a partial distribution of tobacco products is
made through such channel, but the excten~t and character of distribzc-
tion in the sever~al respective sign.~ileant channels of d~istribuction are
factors that shall! be givzenz due wIeight by th~e Code Authority in
reaching its determninat'o~n of lo-wuest reasonable cost. It shall be as
wlnfair tradr~e pr~actice andr is hereby prohibited for any tobacco re-
tailer to sell or offer to sell any tobacco product at sulch price or upon
such terms12 or conditions of sale that th~e buyer w~ill pay less ther~efor
than such lowest reasonable cost of dist~ribution as so determined
and approved, plus the m~erchalzdise cost thereof to such retailer,
pxrovidedZ, how~ever, that 59uch m~inimnum price, in the case of any to-
bacco product pusrchased by the retailer dir'lectly from the mnanufao-
tur7er, shall include, in addition to the foregoinzg, the difference, if
any, between the net~ delivlery cost less trade discounts to the retailer
upon such d~irect purchase from the manufacturer, and the jobbers'
net wzLholesale prices then preva~ilin~g toith respect to the said product.
The tobacco retailer m1ay give not more than one pad of matches
f'or each utnit sold or feve pads for each package of ten unite sold.
In the case of all sales in combination of twoo or more articles. the
price of each particle shall be plainly itndicated."
,Section 3. Pendcing a determination pursuanIIt to Section NR of this
Part II, antd in odrdr temlporarlily to restrict destructivre pric~e-cut-
ting in the rletail tobacco trade, the Administrator may, subject to
such notice and opportunity to be heard as he may deem 1ecessary,
fix a basis for the compultation of the minimum retail price of to-
bacco pr~odurcts, which shall be binding on all retailers."
Section 4. NotwcithstandGing the provisions of this Parlt II, any
tobacco 1tfretile may sell any tobacco products as low as the pries
set by any competitor in his tradle area on mzerchandise which is
ide~ntical: or e~ssentially the same, if such competitor's price is set in
confor~mity wlithl the provisions of thliS ,Section, provided that each
tobacco re~tailer shall immcdi'ately notify the Code! Authority or its
nearest local agency of such action and of all facts pertinent
Section 6. In, comnputing minimum unit prices under this Part II) a
fraction of a cent shall be treated as a full cent. In computing mm-l
in11um, ritmces for mnore than one ulnit o~f the same article such mini-
mu~m un~it pricet shall be multiplied bythe number of units sold.
If the resulting total be one dlollar or less, a discount of not morea
than 5(r mnay be allowed, and if it be greater than one dollar, a dis-
count of not more than 8ro may be allowed. If the net mult~iple
price, so calculated, contains a fraction of one cent, anoA fraction
shall be tr~eatedl as one full cent."
"A~s to cigars, with respect to which t~he provisions of Part I or
Schedule I shall not at the time be operative or shall be stayed, and
as to cigarettes, smoking tobacco, chewing tobacco and snuff, the
standards of fair competition for the trade with reference to pric-
ing practices are declared to be as follows:
Italicized words deleted. See paragraph 2 (4) of order approving this Code.
U SECTION 1. (a) Wilfully destructive price cutting is anl unfair
method of competition and is forbidden. Any member of the trade
or of any other trade or industry or the customers of either may,
at any time, complain to the Code Authority that, any actual price
constitutes unfair competition as det1P~ rutive~ Tprice cutting, Imperil-
ling small enterprises or tending toward monopoly or the impair-
ment of code wages or working conditions. The Code .Authority
shall, within five days, afford an opportunity to the member making
such price to answer such complaint and shall, within fourteen days,
make a ruling or adjustment thereon. If such ruling is not con-
curred in by either party to the complaint, all papers shall be, re-
ferred to the Research and Planning Division of NRA, which shall
render a report and recommendation thereon to the Administrator.
"'(b) When no declared emergency exists as to such products or
afny specified part thereof, there is to be no flixed minlminrn basis
It is intended that sound cost estimating methods should be used
and that consideration should be given to costs. (including costs of
retail distribution) in the determination of pricing policies.
"(0C) H~en an emergency by reason of unfair competitive prac-
tices or other conditions, exists in the trade as to such. products or
any specified part thereof, sale below the stated minimum price of
such products or such specified part thereof, in violation of iSection
2 hereof, is forbidden.
"L SECTION 2. Emerg~ency Provrisions--
"L(a) Ilf the Administrator, after investigation, shall at any time
find both (1) that an emergency has arisen within the trade, ad-
versely affectingr small enterprises or wages or labor conditions, or
tending toward monopoly or other acute conditions which tend to
defeat the purposes of the Act; and (2) that the finding of a basis
for determining minmmum prices for such products or any specified
part thereof is necessary for a limited periodl, to correct ~the condi-
tions constituting such emergency and to effectuate the purposes
of the Act, the C~ode Authority may cause an impartial agency to
investigate costs (including the costs of retail distribution) and to
reconunend to the Administrator a basis for determining nuinimum
p rices of the said products or the said specified part thereof affectfed
by the emergency, and thereupon the Adlministrator may proceed
to fix a basis for determining such minimum prices.
"L(b) When the Admiinistrator shall havre fixed a basis for deter-
mining minimum prices for the said products or said specified part
thereof for a started period, which prices shall be reasonably calcu-
lated to correct the conditions of such em~ergency and to eff~ectuate
the purposes of the Acts he shall publish the said basis. Thereafter,
during such stated period, no member of thle trade shanll sell such
products at a net realized price below the minimum price deter-
mined upon the basis so fixed, and any such sale shall be deemed
destructive price cutting. From time t~o time, the Code Auth~ority
may recommend review or reconsideration or the Admlinistrator may
cause any determination hereunder to be reviewed or reconsidered,
and appropriate action taken.""
e Preamble and Sections 1 and 2 added. See paragraph 2 (4) of order approving
SECTION 3. NOtwithstanding any of the provisions of this Part II,
any tobacco retailer may sell at less than the prices therein prescribed
merchandise sold as bona fide clearance or bona fide discontinued
lines of merchandise or imperfect or actually damaged merchandise
or merchandise sold upon the cofpolete final liquidation of any
business or merchandise donated or charitable purposes or to
unemployment relief agencies, provided that aUl such merchandise
shall be advertised, marked and sold as such and that a strip label
shall be placed across the inside lid label of box goods to be disposed
of, stating the reason the said merchandise is being sold below the
prescribed prices therefore and provided further that such merchan-
dise shall be disposed of pursuant to any regulation as to the manner
of such disposal which shall be issued by the Code Authority subject
to the approval of the Administrator.
SECTION 4. Except as in this Part II otherwise expressly provided
wherever, under any of t.he provisions of this Article VI, any tobacco
product is required to be sold at retail at a minimum price, such
minimum retail price shall not be reduced directly or indirectly or
by any device or subterfuge such as the giving of any trading or mer-
chandise coupons, prizes or premiums, or any other thing of value
or any discount, rebate, refund, commission, credit or allowance
whether in the form of money or otherwise; nor shall any retailer
offer or extend any special service or privilege to any customer which
is not available to all customers.
SECTION 5. NTothing in this Part II shall be construed to prevent
the free and general distribution of articles commonly used for
advertising, except so far as such distribution would constitute in
event an additional discount or reduction in price below the minima
ARTICLE VII--TRADE PRACTICES
SEcH~ON i. Fal86 Bdvertising.--The making or causing or permit-
ting to be made or published of any false, untrue or deceptive state-
mlent by way of advertising or otherwise concerning the grade,
q uality, quantityI, substance, character, nature, origin, size or prepara-
tion ofany product of the trade, having the tendency or capacity
to mislead or deceive purchasers or prospective purchasers and the
tendency injuriously to affect the business of competitors, is pro-
hibited as an unfair method of competition.
SECTION 2. ec~ept~ive Brandi~ng.--The infringement of established
trademarks and the use of trademarks or trade names which will
result in deception of the public or enable dealers to perfect such
deception is prohibited as an unfair method of competition.
SECTION 3. False Billing.--No tobacco retailer shall knowingly
withhold from or insert in any quotation or invoice any statement
that makes it inaccurate in any material particular.
SECTION 42. Inacculrate La~belling.--No tobacco retailer shall brand
or mark or pack any tobacco product in any manner which is in-
tended to or does deceive or mislead purchasers with respect to the
brand, grade, quality, quantity, origin, size, substance, character,
nature, material content, or preparation of such tobacco product.
Sacrlow 5. Iauzcurate References to Competitors, etc.--No tobacco
retailer shall publish advertising which refers inaccurately in any
material particular to any competitor or his goods, prices,- values,
credit terms! policies or services.
SETI~ON 6. T/creat8 of Lawe Suits.--No tobacco retailer shall pub-
lish or circulate unjustified or unwarranted threats of legal pro-
ceedings which tend to or have the effect of harassing competitors
or intimidating their customers. Failure to prosecute in due course
shall be evidence that such threat is unwarranted or unjustified.
SECTION 7. Bribing Employees.--No tobacco retailer shall ie
permit to be given, or directly or indirectly offer to give, a nything
of value for the purpose of influencing or rewFardcing the action o
any employee, agent or representative of another in relation to the
business of the employer of such employee, the principal of such
agent or the represented party, without the kinow~ledlge of such
employer, principal or party. This provision shall not be~t construed
to prohibit free and general distribution of articles commonly used
-for advertising except so far as such articles are actually used for
commercial bribery as herein above defined.
SECHTON 8. /nterferenCCe zsith Sno0/A6/ COlffGrf8.-RO tObacco
retailer shall attempt to induce the breach of an, existing contract
between a competitor and his customer or source of supply; nor
shall any such retailer interfere with or obstruct the performance
of such contractual duties or services, with the purpose and effect
of hampering, injuring or emba rrassing competitors in their business.
SECTION 9. Coercio~n.--No tobacco retailer shall require that a pur-
chase of any tobacco products or other goods be a prerequisite to the
purchase of any other tobacco products.
ARTICLE VIII-OnasmIz.-now, POW\ERS, AND) DUlTIES OF THIE: (ODE
ORGANIZATION AND CONSTITUTION
SECTION 1. There shall forthwith be constituted a Code Authority
consisting of not more than ten (10) members selected as follows:
Two (2) members shall be members respectively of the retail food
and grocery trade and of the retail drug trade engaged in the sale at
retail of tobacco products and each shall be designated: by thie Code
Authority established by the code of fair comnpetition for his trade.
One (1) member shall be appointed by_ the Consum~ers' AdvisoryS
Board of the National Recovery Administration.
Six (6) members shall be representative of the retail tobacco trade
and shall be designated by the Board of D~irectors or th~e Execut~ive
Committee of Retail Tobacco Dealers of America, Inc. One of the
said six (6)2 members shall represent a national chain of tobacco
stores and five (5) of the said six (6) shall represent other tobacco
One (1) member shall be representative of andl selected by the
non-memlbers of Retail Tobacco Dealers of Americat, I~nc., non-mema-
bers of any of its affiliated associations and shall be designated pur-
suant to a plan which shall be submitted to the .Administrator for
his approval by the other members of the Code Authority within
fifteen (15) days after the effective date hereof.
SECTION 2. In addition to membership as above provided, therb
may be not more than three (3) members, to be appointed by the
Administrator, to serve without vote or expense to the trade.
SECTION 3. The Associat~ion and each trade or industrial associa-
tion directly or indirectly participating in the selection or activities
of the Code Aiuthority shall (1) impose no inequitable restrictions
on membership, and (2) submit to the Administrator true copies of
its articles of association, by-laws, regulations, and any amendments
when made thereto, together withl such other information as to
membership, organization, and activities as the Administrator may
deeml necessary to effectuate the purpose of the Act.
SECTION. 4. In order that the Code Authority shall at all times
be truly representative of the trade and in other respects comply
with t~he provisions of the Act, the Administrat~or may prescribe
such hearings as he may deem proper; and thereafter if he shall find
that the Code Aluthority is not truly representative or does not in
other respects comply with t~he provisions of the Act, may require
an appropriate modification in the method of selection of the Code
SECTION 5. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor
shall any member of t~he Code Authority be liable in any manner to
anyone for any act of any other member, officer, agent, or employee
of the Code Authlorityv. Nor shall any member of the Code Author-
ity, exercising reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to act under
this Code, except for his own willful misfeasance or non-feasance.
SECTION 6. If the Administrator shall at any time determine that
any action of the Code Authority or any agency thereof may be
unfair or unjust or contrary to the public interest, the Administrator
may require that such action be suspended to afford an opportunity
for investigation of the merits of such action and further considera-
tion by sucrh CodeP Auithority or age~ncy pending final action which
shall not be effective unless the Administrator approves or unless
he shall fail to disapprove after thirty (30) days' notice to him of
intention to proceed with such action in its original or modified form.
POWERS AND DUTIES
SECTION 7. Subject to such rules and regulations as may be issued
by the Administrator, the Code Authority shall have the following
powers and duties, in addition to those authorized by other pro-
visions of this Code .
(a) To insure the execution of the provisions of this Code and
to provide for the compliance of the trade with the provisions of the
(b) To adopt by)-laws aind rules and regulations for its procedure.
(c) To obtain from members of the trade such information and
reports as aire required for the administration of the Code. I~n addi-
tion to information required to be submitted to the Code Authority,
members of the trade subject to this Code shall. furnish such statis-
tical information as the Administrator may dleem necessary for the
purposes recited in Section 3 (a) of the Act to such Federal and
State agencies as he may designate; provided that nothing in this
Code shall relieve any member of the trade of any existing obligaa-
tions to furnish reports to any Government agency. No individual
report shall be disclosed to any other member of the trade or any
other party except to such other Governmental agencies as ma.y be
directed by the Administrator.
(d) To use such associations and other agencies as it deems proper
for the carrying out of any of its activities provided for herelin, pro-
vided that nothing herein shall relieve the Code Authority of its
duties or responsibilities under this Code and that such trade asso-
ciations and agencies shall at all times be subject to and comply with
the provisions hereof.
(e) To makie recommendations to t.he Ad~minist~rator for the coor-
dination of the administration of this Code with suceh other codles,
if any, as may be related to or affect members of the trade.
(f) (1) It being found necessary to support th~e administration
of this Code, in order to effectuate the policy of the Act and to main-
tain the standards of fair competition established hereunder, the
Code Authority is authorized:
(a) To incur such reasonable obligaations as are necessa~y- and
proper for the foregoing purposes and to meet such obligations out
of funds which shall be held in trust for the purposes of the Code
and raised as hereinafter provided.
(b) To submit to the Administrator for his approval, subject to
such notice and opportun it to be heard as he maye deemn necessary:
1. An itemized budget of estimated expenses for the foregaomlg
purposes, and 2. Ain equitable basis upon which thle funds necessary
to support such budget shall be contributed by all members of the
(c) After such budget and basis of contribution have been ap-
proved bS the Admimistrator, to determine and collect equitable
contributions as above set forth, and to that end, if necessary, to
institute legal proceedings therefore in its own name.
(2) Each member of the trade shall be liable for his or its equita-
ble contribution to the expenses of the maintenance of the Code
Authority as hereinabove provided. Only members of the trade
complying with the Code and making such contribution shall be
entitled to participate in the. selection of the members of the Code
ALuthority or to receive the benefits of its voluntary activities or to
maake use of any N.R.A. insignia.
(g) To cooperate with the Administrator in regulating the use of
any N.R.A. insignria solely by those members of the trade who are
complying with this Code.
(h) To recommend to the Administrator any action or meas-
ures deemed advisable, including further fair trade practices, in,
their relations with each other or with other trades or industries;
measures for industrial planning, andi stabilization of employment;t
and including modlifcations of this Code which shall become effective
as part hereof upon approval by the Administratorr after such notice
and hearing as he may specify.
(i) To appoint a Trade Practice Committee which shall meet with
the Trade Practice Comimittees appointed under such other codes as
may be rela~ted ton the trade for the puirpose of formullating fair trade
practices to govern t~he relationships between employers under this
Code and under such other codes to the end that such fair trade
practices may be proposed to the Admlinistrator as amendments to
this Code and such other codes.
(j) To provide appropriate facilities for arbitration, and subject
to the approval of the Administrator to prescribe rules of procedure
and rules to effect compliance with awards and determinations.
SECTION 8. Any member of the trade may submit data tending to
prove that such member is placed at a competitive disadvantage with,
or is subject to different economic conditions to those of other mem-
bers of the trade; and the Code Authority may, after investigation,
recommend to the Administrator that changes be made in the Labor
Provisions of this Code, and upon approval by the Administrator
after such notice and hearing as he may specify, such new provisions
shall become effective for that member of the trade.
SECTION 9. WVhenever any question may arise under this Code as
to the construction and meaning of any portion thereof, the Code
Authoritiy may issue such interpretations as may be necessary to
effectuate the operation of and compliance with the policy of thme
Act, subject at all times to the approval of the Administrator, and
such interpretations approved by the Administrator shall become
operative as a part of this Code.
SECTION 10. No provision of this Code shall deny to any member
of the trade or to any party in any proceeding the right to appeal
to the Administrator nor prevent, at any time, direct appeal to him
from any determination of the Code Authority. The Code Author-
ity may, if it chooses, invoke the procedure provided for in this
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of t~he President, in accordance with the
provisions of sub-section (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule or regula-
tion 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 circum-
stances, such modifications to be based upon application to the Ad-
ministrator and such notice and hearing as he shall specify and to
become effective on approval of the Administrator.
ARTuclE X--MONOPOLIES, ETo.
No provision of this Code shall be so applied as to permit mo-
nopolies or monopolistic practices, or to eliminate, oppress, or dis-
criminate against small enterprises.
ARTICLE XYI EFFECTIVE DATE
This Code shall become effective on the date specified in the order
of approval by the President of the United States.
Approved Code No. 466.
Registry No. 1615--30.
Cloan MEECEI~ANDISING PLe~AN
A. BALES BY CIGAB MABNUFACTUREERS
SEarrom 1. As to each of the cigars of his manufacture, each cigar manzu-
facturer shall record with the Council the minimum sales price at which such
cigar is intended to be sold at retail (exclusive of any govrernmental tax or
charge thereon required to be paid by the jobber or retailer), which price,
hereinafter referred to as the retail price shall constitute the basis for com-
puting the discounts and terms for all dealers as hereinafter provided; and
shall also record with the Council the discounts and credit terms to be allowed
by him from the retail price in connection with thie several respective classes
of transaction described in subdivisions (a) to (d) inclusive of Section 2 of
this Division A. The retail price and, within the limits hereinafter prescribed,
the discounts shall be subject to change at the discretion of the mannuf~c~turer,
provided the revised price or discounts as the case may be, be recorded w'ith
the Council at least fiv~e (5) days before the change becomes effective unless a
shorter tim~e be required by a cigar mlanu~facturer in order to mnzeet a comrpeti-
tor's reduction of price which, is not in violation of this m~erch~antdkisng plan.'
The retail price shall be prominently marked on each container of cigars.
SECTION 2. From the recorded retail price, each cigar manufacturer shall, as
to each of his cigars, grant discounts to be established by him in hiis disc-retion
within the limits hereinafter in this Section 2 prescribed, as follows:
(a) In the case of sales, If any, to retailers other than sales to chains of
stores and other than drop shipment sales under subdivision (d) of this Section
2, a discount of not more than twenty-eight percent (284~c).
(b) In the case of sales to accredited cigar jobbers, a discount, in addition
to the discount which shall have been established by the manufacturerr under
subdivision (a ), of not more than fourteen percent (14%).
(c) In the case of sales to cigar service jobbers, a discount, in addition to
the discount which shall have been established by the manufacturer under sub-
division (a), of not more than sixty-six and two-thirds percent (66%%SO~) of the
established discount to accredited jobbers. Provided, however, that in terri-
tories where no accredited cigar jobber exists, a manufacturer may allow a
cigar service jobber a discount not to exceed ten percent (100-) on any par-
ticular class of cigars in addition to the discount which shall have been estab-
lished by the manufacturer under subdivision (a).
(d) In a territory where a cigar manufacturer has an accredited cigar
jobber, the eigar manufacturer may', in his discretion, make drop shipments
to retailers or sub-jobbers, provided the accredited. cigar jobber agrees to or
requests such shipments; in a territory where the eigar manufacturer has no
accredited cigar jobber, the cigar manufacturer may, in, his discretion, make
drop shipments to retailers. Provided that in either case shipments shall be
made only in quantities of not less thlan 2,000 cigars in the case of Class A and
Class B cigars, and not less than 1,000 cigars in the case of Class C or higher
For such sales or drop shipments, there shall be established a discount for
the drop shlipment purchaser, in addition to the discount whieb shall have been
established by the manufacturer under subdivision (a), of not more than five
percent (5%)!, and this discount shall be allowed by thie manufacturer or
jobber, whichever shall make the billing.
The eigar manufacturer may in connection with each drop shipment sale
allowr to the accredited cigar jobber who has requested or consented to such
SEffective June 25, 1934. See Da~ragraph 2 (1I' of order approving this Code.
8Provisions for filing of prices and discounts stayed until further orders. see
paragraph 2 (3.1 of order approving this Code.
Italicized words deleted. See paragraph 2! (2) of order approving this Code.
sale a service credit. Provided, that the total of the service credit and the
discount allowed to the drop shipment purchaser and the accredited cigar
jobber shall not exceed the fourteen percent (14%) set forth in subdivision (b)
(e) In the case of sales to chains of stores, discounts not exceeding the
discounts which the manufacturer shall have established for hlis sales to ac-
credited cigar jobbers under subdivision (b), provided, however, that each cigar
muanufacturer may determine in his own discretion to which chains, if any, he
will make direct sales and, within the limits hereinabove prescribed, the
amount of discounts on each such sale.
On each transaction in any of the categories (a) to (d) inclusive above
described, the cigar manufacturer may allow a further discount of two percent
(2%~) for cash within his established credit terms.
Nothing herein contained shall prevent any eigar manufacturer from estab-
lishing within the maximum percentage limits hereinabove prescribed a differ-
eat schedule of discounts w~ith respect to each of the several brands, sizes,
shapes or prices of his products, or a schedule of discounts different from that
of any other cigar manufacturer; but each eigar manufacturer shall apply his
established system of discounts uniformly as to each of the classes of transac-
tions above enumerated in subdlivisions (a) to (d) inclusive, and wTithin each
of the said classes of transactions there shiall in no ease be any individual
variation or variations from the discount or discounts so established by such
cigar manufacturer. The service credits provided for in subdivision (d) need
not be uniform and may vary in each individual case.
SECTrION 3. NO LmtHlUf8trfler Shalil Sell cigarS at retail to COnSUmers except
in accordanc~e with the provisions of this merchandising plan relating to sales
by retailers; but the provisions of this merchandising plan shall not apply to
any cigar manufacturer who sells exclusively and directly to the consumer.
SEcTION 4. No manufacturer shall offer or giv~e a free deal. The term "free
deal as used in this paragraph means the gift of cigars or anything of value
or any sp~ec~ial deal, discount or allowance conditioned upon the purchase of a
SECT~ION 5. All sales by manufacturers shall be evidenced by itemized in-
voices shiowing thle retail price and the discounts granted therefrom.
B. SALES BY' JOBBERS AND SUB-JOBBERS
PEcrroN 1. Each jobber shall record w~ith the Council the discounts and
credlit sterns (not exceeding the discounts which such jobber shall have received
fromt the manumneturer) to be allowed by the jobber from the retail price in
connection with nil resales of cigars which in his discretion he miay make to
sub-jobbers. Such discounts shall be subject to change at the discretion of the
jobbier provoide~d that the revisedl discounts be recorded wvithi the Council at least
threce (3) dayis twfore the change becomes effective unless a shiorter tirne be
requriredn in or~der to mzeet a corn~petitor's reduction of price which is not in
ciolatrion, of thris mre~rchandisinrg plani;' and the discounts so recorded shall so
long na; Pffective aplyll to all such resales by the jobber to sub-jobbers and there
shall in no casre be anly individual variation or variations from the discount
or dliscounts so estab~lisledl.
rSEcTION 2. E~ach jobber and each sub-jobber shall record with the Council
thle discounts and credit terms (not exceeding the discounts from the retail
price w'hich such jobber or sub-jobber shall have received from the manufae-
turer or jobbecr, as the case may be) to be allowed upon all resales of cigars
to retailers. Such discounts shall be subject to change at the discretion of the
jobber or sub-jobber provided the revised discounts be recorded with the Council
at Ileast three (3) days before the ebange becomes effective ?rlaless a shorter
timel be requlirerd in order to mleet a conspetitrrr's reduction of pr'ice which is n~ot
inl riolatfion of this mIerchandisingg planl;' and the discounts so recorded shall,
so long as e~ffctiv~e, apply to all such resales to retailers and there shall in no
case be any individual variation or variations from the discount or discounts
EECTION 3. Each resale by~ a jobber or sub-jobber under this merchandising
plan shall be evidenced by an itemized invoice.
Italicized words deleted. See paragraph 2 (2) of order approving rids Code.
Smarlorr 4. Nothing in this Division B contained shall affect or modify the
provisions above set forth in Division A in relation to drop shipment sales.
SEcTION 5. No jobber or sub-jobber shall sell cigars directly~ to the consumer
except through an established retail department and in compliance with the
provisions of this merchandising plan relating to sales by retailers.
C. 8 ALES BY RF A [\L IRS
SrErLON 1. In the case of all cigars purchased by retailers from cigar manu-
facturers, joblbers or sub-jobbers in connection with which a retail price shall
have been recorded by the manufacturer as hereinabove provided, the retailer
shall sell such cigars at retail at not less than the retail price so recorded,
provided, however, that (1) in the case of the sale at retail of multiples of
not less than ten (10) units (except in the case of cigars selling for less than
five cents (54) each) a discount may be allowed of not more than fiv~e percent
(5%c) from the retail price, and (2) in the case of sales at retail of boxes of
twen3ty-five (25) cigars or more a discount of not mor'e than eight percent
(8%0) from the retail price may be allowed unless the eigar manufacturer
shall record with the Council and mark a box price thereon involving a discount
of less than eight percent (8%~) in which case the marked box price shall be
observed as a minimum, and (3) the retailer may give not more than one (1)
pad of matches for each unit sold, or flve (5) pads per box of twe~nty-five (25)
cigars~or ten (10) pads per box of fifty (50) cigars sold. In the case of any
retailer granting a cash discount upon all purchases made, any salesw of cigatrs
shall be excluded in computing the cash discount to be allowed, or the amount
of cash discount shall be included in the price of the merrc~handise so~ld in
addition to the minimum prices herein provided.
BECTION 2. Upon any sale to a consumer, situatedl at the time of such sale
in a state imposing a tax on tobacco products or the sale thereof (other than
a tax payable by the manufacturer) the amount of such tax, if not paid by
the consumer, shall be added to the minimum price herein provided, whether
the seller shall be located within or without such state.
SEcnowN 3. Notwithstanding the provisions of this merchandising plan, any'
tobacco retailer may sell at less than the prices therein prescribed merchandise
sold as bona fide clearance or bona fide discontinued lines of merchandise or
imperfect or actually damaged merchandise or merchandise sold upon the
complete final liquidation of anly business or merchandise donaltedl for char-
itable purposes or to unemployment relief agencies, provided. that all such
merchandise shall be advertised, marked and soldl as such and that a strip
label shall be placed across the inside lid label of box goods to bie disposed of,
stating the reason the said merchandise is being sold below the prescribed
prices therefore and provided further that such merebandlise shiall be~ disposed
of pursuant to any regulation as to the manner of sueb disposal as shall be
issued by the Code Authiority subject to the applrov~al of the Adlministrator.
SECTION 4. Except as ini this merchandising plan otherwise expressly pro-
vidled wherever under anly of the provisions of this mlerchandlising plan any
cigar is required to be sold at retail at a minimum price, such minimum retail
price shall not be reduced directly or indirectly or by any device or subterfuge
such as the giving of any trading or merchandise corupons, prizes or premiums
or any other thing of value or discount, rebate, refund, commission, credits
or allowances whether in the form of money' or otherwise; nor shall any
retailer offer or extend special service or privilege to any' customer which is
not available to all customers.
D. MTNITTUM DISCOUNTB
Upon the recommendation of the Code Authority established by the Code for
the Cigar Mlanufacturing Industry or the Code for the Wholesale Tobacco Trade
or the Code for the Retail Tobacco Trande or upon application of any member
of the Cigar Mllanufacturing Industry or of the WVholesale Tobacco Trade or
of the Retail Tobacco Trade and the approval of such recommendation or ap~pli-
cation by the Administrator, the Code Authorities established by the said
several codes, shall, upon such notice and opportunity to be heard, if any,
as the Administrator may require determine by joint motion minimum discounts
to be prescribed in connection with sales of cigars by any member of said
Industry or Trades and such deteraniation shall be effective only upon the
concurrence of all three (3) Code Authorities and, subject to the further
approval of the Administrator, such minimum discounts shall be binding upon
aHl such members.
E. PROVISIONS APPLICABLE TO ALL SALES OF CIGARSB
SEOTIOoN 1. Wherever any of the provisions of this merchandising plan pro-
oide for two (2) or more discounts from the retail price, such discounts shall
be computed separately and successively so that each succeeding discount shall
be computed upon the balance of the retail price remaining after the deduction
of the next preceding discount provided for.
SECTION 2. Any change in the retail price shall be applicable as at the effective
date of such change to all merchandise thereafter sold by wholesale distributors,
or retailers, but wholesale distributors may, notwithstanding any reduction of
the retail price, dispose of existing stocks on the basis of the retail price pre-
vailing when such stocks were acquired.
SECTION 3. Nothing in this merchandising plan shall be construed to prevent
the free and general distribution of articles commonly used for advertising
purposes and premiums, except insofar as such distribution or use of premiums
would constitute, in effect, an additional discount or a reduction in price below
the minima established hereby.
SncnPow 4. All prices and discounts filed with the Council by manufacturers,
jobbers or sub-jobbers, as hereinbefore provided shall immediately be reported
by the Council to the respective Code Authorities for the Cigar Ma~nufacturing
Industry, the W~holesale Tobacco Trade and the Retail Tobacco Trade. Each
such Code Authority shall cause such prices and discounts to be made available
to all members of its respective industry or trade and shall comply with any
regulations which may be issued by such Code Authority with the approval of
the Administrator as to the publication and dissemination thereof.
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