For sale by the Superintendent of Documense, Washington, D.C. Price 5 cents
Registry No. 1615--13
Approved Code No. 467
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON JUNE 19, 1934
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superintendent of Documents, Government
Printing Office, W'ashington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMIMERCB
Atlanta, Ca.: 5041 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mlass.: 1801 Customhouse.
Buffalo, N.Y'.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North W'ells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.:: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mlo.: 10283 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisv~ille, Kiy.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
M/inneapolis, M~inn.: 213 Federal Building.
New Orleans, La.: Room 225--A, Customhouse.
New~ York, N.Y'.: 734 Custombouse.
Norfolk;, Va.: 4106 East Plume Street.
Philadelphia, Pa.; 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, M~o.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
fieattle, W'ash.: 809 Federal Offce Building.
Approved Code No. 4167
CODE OF FAIR COMPETITIONi
CIGAR ~MANUFACTUINGICI INDUSII-1TRY
As Approved on June 19, 1L934
CODE OF ETAIR COMIPETTITON FOR THE CIGAR MANUFACTURING `rNDD7STIRY
An1 applientionl having bee~n duly made, pur unutt to and in full
compliance with the provisions of Title I of thle Na~tional Industrial
Recovery Act, approvedc~ June 16i, 1933.r for mly approval of a Code
of Fair Completitioln for the Cigar Manufactur.~i linlg TIndust ry, and
hearings having; been hcldT thereonc~l and the Admlinistratorto having
rendc~tred his report c~onltningrl an analysis of the said. Codel of Fiair
Compe~ttition togethecr with his recommlenidationls and find~ing~s with
respect t~hereto, and the Administrator having forund~ that tbhe saidl
Code of F~air Compl~etitionl complies in all resptc~ts with the pertinent
provisions of T'itle I of sa~id Act and that the requirements of claulses
(1) and (2) of subec~tion (a) of section 3 of the said Act hav~e
N~OW, TH1EREFORE, I, Fra~nklin D. Roo evelt~, 1Presid-ent of
the United State~s, pursuant to the authorl~ty \-estedt in mle by Title I
of the~ Nationall Industrial IRecovery3 Act, appr'oved~ June 16i, 1933,
and otherwise, do adopt andi approve the report, reconum nenda~tionls,
and findlings of the Admrinistratorr and do ordercl that the said Code
of Fa7ir C'omp~etition be and it is he~reby3 alpprovedt~c, and shall become
effective on the dante of this Ordetr; subject, how\ev er, to the follow~ingb
(1) Thant the provisions of Article V/I andl of Schedule I--the
Cigar M~erchlandising Plan~-be stayed7 and shall not become effective
until M1ondaly, June 25, 1934.
(2) That the wa~itinlg periods of five and three days continued in
Articule VI, Section I and Schedlule I, 1Part A, Section 1, and inl
Schdul IPar Bbeeions 1 and 2, respectively, be stayed and
shall not become effective, notwithstanding said cigar mlerchandisingr
plan becominga effective, until th2e further order of the Administrator.
(3) Trhat all provisions for the filing of prices and discounts in
said cigar merchandising plan be stayed until arrangements satis-
factory to the Achninistrator, are made for confidential treatment
and for simultaneous distribution thereof to all members of the
industry and customers willing to pay the cost thereof.
(4) That the provisions of Articles III and I[V shall be and the
samie hereby are stayed until, and shall become effective on, Mlonday,
June 25, 1934.
FRANKLIN D. ROOSEVELT.
HUGH S. JoarsioN,
Admd in ist rat or.
Tao[P WmIFTE HOUSSE,
Julne 19, 194
LETTER Of~c TRAI~NSMIlTTAl L
The W~hite Hiouse.
Sm: A Public Hearinlg on thre Code of Fair Comp~etitioln for the
Cigar M~anufacturingr Industry, submiitted bcy the Associated Cigar
Manufacturers and L~eaf Tobacco Dealers, was held in Wash~ington,
D.C., on the 22nd and 23rd of November, 1933, in accordaunce with
the provisions of the Natitonal Industr~ial Recovery Act, pursuant, to
Notice. of H~earing signed by t~he Secretary of Agric~ultlr~e under
Executive. Order of Julne 26, 1933. On Aipril 7, 1!,34, jurisdiction
over this; Code wvas transferrede~ to the Naltionnia Recovery Adminis-
tration, pursulant to Exec~utive Order of January 8, 1934.
Certain changes have been male, in the Code to conform~ to NIRA
policy, buxt these changes ar~e no<-t in conflict with thre transcript of
the record at the Publict H~learing, information and facts filed in
briefs or addluced at post-hear~ing confere~nces with. the Code Comn-
mit~tee. The Association claims to represent. more than 80%0 of thne
industry and at the Public Hearing, the proposed Code had the
practically ulnanimnous support of th~e industry as well as tobacco
wholesalers and retailers and tobacco farmers.
ECONOMIIC EFFECT OF THIE CODE
It is stated that the year 1920 was the attainment of the peak for
t~he Ciganr Mianulfacturingr Industry. In thalt year empl:loyees en-
gaged in the industry w~ere slightly in excess of 115,000. In 1929
the number of employees had declined to alpproximnately 84,000.
. Todayv t~he.nlnl um er ofmployeesn is said to be, in t~he neigclhborhlood
In. 1919 the industry emnployed 1,100 malchinle wTorklers and 112,000
hand. worlkers. Silc~e that time there has been a marked displace-
ment. of hand workers in favor of :machine wttorkers, buit it is not
claimedr~ that wnge enrner~s have been displacedt entirely by reason of
the intlicrodctionl of miach~inery.
Fem~ale emplloyees c~ompr~ise approximately 79%l of the total numn-
ber of emnployetes.
TPhre indus~ltry comprises approximately 1,250 establish~lments with
tot al pa yrl~olls of $34,900,0i00.
HOURS ANID W~AGESB
Undetlr thle C~ode clerical, accounting o-r other office employees are
limitedi to 4l0 hours per w5eekr and 8 h~our~s per day. All1 other em-
ployee are limlited to 40 hours per week but without limitation as to
horspe day. Excep~tions are providedl for execu~tive, super~vlsory,
technied~ and~ adlministrative empllloyees receiving salaries in excess
of $;35.00 per week, outside salesmlen, wastchmen. chaurffeurs, and det-
liverymen, firemen and engineers, shipping department employees,
and emlployees on, emergency repair work-.
Thl-e minimum hiour~s may be exceedled during two peak seasons
per' year to bje determined by the Code Authorityv subject to the
app,1O~Rov of the Administ~rator.
W~ith th-e reception of watchmen, employees are limited to a 6
day~ wo~lirkn ~wee]k.
Wa'tchmenr are limiitedl to 56 hours per week with a minimum rate
of pay of $15.00 per week;, andl office employees are limited to 40
hours per week: with a1 minimum rate of pay of $1.5.00 p~er week.
Thes Codle estab~lish~es a mninimumi wage rate per hour for thie two
manufacturingr classes within the industry, viz: (1) machine workers,
(2) handl workers.
In the stogaie and hand-made cigrar industry, wagre antes are grrad-
unted from m~inimla of 250 per hour to 3j per hour. One such
grnduation of wages is a provision that cigar makers in this branch
of the industry who are engaged in the production of Class C or
high~ier priced cigars shall receive 4O: more per hour as a minimum
wage. A purpose of this graduation in wages is to insure to labor
a part of the increased return for the more expensive products of
the industry. In the machine made eigar industry, wage rates are
graduated on a somewhat different basis between the same two
The wage rates, established in the Code, provide that the skilled
wol]rker, in this case the hand-worker, be paid a lower rate of pay
per week than thne unskilled wnorker, th~e machine-worker. The re-
sult of this method, it is claimed, will serve to curb the displacement
of hand-wPorkrers which has taken, effect at a disproportionate rate
The Code provides for equitable adjustments.
The reduction in working hours of employees will not result in
reemploymlent but will result in stabilizing, to some extent, present
employment within th~e industry.
It is estimated that. the minimum wage rates established in the
Code will definitely increase the hourly rates and weekly wages paid
to wage earners over the wages previously paid employees in this
A-ticle \', Section 14 provides that, at the expiration of nine
months after the eff'ective date of the Code, the industry shall peti-
tion the Pr~esidlent or the A~dministrator to review the provisions of
the Code relating to hours of labor andl rates of pay."
The wage andl hour provisions meet with thle approval of organ-
ized labor in this industry and the Labor Advisory B~oard.
CIGA-R MERCHANDISING PLAN
The oultstandling feature of the fair trade practice provisions is
the cigar merchandising plan, which is also to be found in the
wholesale anld retail tobacco codes. It. provides for the retail sale
of cigars at prices not less than those declared by the manufacturer
for each of his products, and further prescribes maximum discounts
allowable by manufacturers or wholesalers from those prices.
This plan originated with the retail dealers and was proposed by
them to the wholesalers and cigar manufacturers. At the Public
Hearing on this code it was supportred by these three groups as well
as by representa~tives of tobacco growers. It now has the approval
of thle Consumer~s Advisory Board, Industrial Advisory Board,
Labor AdvisoryT Boarda, and L~egal Division.
It has longr been a recognized custom of the industry for manu-
facturers to declare inte~nded retail prices, and the inter~nal revenue
taxes on cigar~s are comprlluted on such1 a basis. Th'le plan is based
on this custom,l, but free co~mpetitin between manufacturers, as well
as the! industry's' recognition of th~e imnlperative need for rettentio~n
of the five-cent cigar, should serve to prevent increase in prices.
Thre sale of long shot cigars, induced by excessive discounts to
distributors has been an ab~use of cor~nsumersl' which will be remrediedl
by the procvisiolns limiting the amount of such disclllnnts This plan
will permit each mla nlluclturer to make the best possible cigar in
each price class.
At the same timle, the use of cigars as "Lloss leaders" by unrelated
business has plac~ed a severe burden on persons whose welfare de-
pendl on the tobacco business. It is hoped that the estab1l ishmencI~t of
minimum retail prices will stabilize employment for this large class
of p~er~sons who1I ar~e, for the most part small business men, dependent
for their livelihood on this tlrade.
The Division Adm~inistratolr in his final repIort to me on said Code
having found as herein setl forth and on the basis of all the proceedl-
ingsj in this matter:
I find that:
(a) Said Code is well designed to promote the poulicieis andl pur-
pojses oef Title I of thie puNationalzl Industrial Reco(.veryS AZct, including
remnoval of obs~truc~t ions to the free flo-w of interstate and foreign
cormmcrce~ which tend to dimninishl the amount thereof and will pro-
vide for tre ge~nelral wel`fare? byC p~romol(ting the orrganiza~tionl of indlus-
try for the purpose of cooperative ac~tionI of labor and mlanageentr- l
undler adeq~cuate governmental sanctions and supervision, by eliminat-
ngunfair compe~ttitive p~rac~tiics, by promoting the fullest. possible
utilizatio~n of the present prod~tuc~tive capaicity of industries, by avoid-
ing undue restrictio-n of production (exce~pt. as may be temzporarilyv
requiredd, by incr~easing the consumption of indus~~trial and agfricul~-
tuxral prodlc~ts through increasing purchasing power, by reducing
and relievingr unemlolrc y mentt by improving standardsd of labor, and
by othlerwrise rehabrlilitatingr industry.
(b) The Cod'e complies in all respects wjpith the pertinent provisions
of said Title of said Act, including without limitation Subsection
(a) of Section 3, Subsection (a) of Section 7, and Subsec~tion (b) of
Section 10) th~ereof ; and that the applicant associationl is an indlus-
trial associationl truly r~epres.entaltivet of the aforesnid. Industry ; and
t~hat. 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 p-ractices.
(d) The Code is not designed to an~d will not eliminate~ or olppresss
small enterprises a~nd will not operate to discriminate against them.
(e) Those engaged in other steps of the Economic process have
not been deprived of the right to be heard prior to approval of said
For th above reasons this Code is hereby recommended for
HUGH S. JOHNSON,
A d mzinis trIat or.
JrNlE 19, 10934
CODE OF FAIR COMPETITION~ FiOR TIHE CIGAR MANU-
AnaTILEr I -PURPOSES;
To~ effectuate thle policies of Title I of thle Nplational Industrial
Recov\ery Act. this Code is established as a Code of Fair Comnpeti-
tion for thle Cigarr Mannufacturring Ind~ustry, and its provisions shall
be stanldard~s of fair competition for such ind-ustryg ad shall be
binding upon every member thereof.
AI)RTICLE II---DEFINIT.IONh S
As used in this Code, the following words and phra~ses shall be
defined as follows:
SECTION 1. The term Presidecnt means the President of the
United States of Amierica.
SECTIONI 2. The Term "( Aldministrator means the Administrator
for Indulst rial1 Recovrery.
SECTIGNS 3. The.term "'Act means Title I of the National Indus-
trial Recov-ery Act.
SECTION 4. The term "' cigar manufacturinbgf industry means and
includes the manufacturing into cigarrs o cured leaf tobacco,
stemmed tobacco, scrap, and/or shreddedc filler for use in the manu-
facture for sale of cigars.
SECTION 5. The term "' cigar means and includes cigars, stogies,
cheroots and little cigars.
SECTION 6. 1110 termlS memberr of the industry ", manufac-
turer and cigar manufacturer mean anld include wCithout limni-
tat.ion any person engaged either as an employer or for his or its
owrn account in the Cigar MaInufacturing~: Industry.
SECTION 7i. The term employees includes any and all persons
engaged in the industry, however compensated, exceept a member of
the indust ry.
SECTION 8. The term "' employer means any person by whomn any
such employees is complensatedl or emlploed3.
SCECTIONr 9. The t~ermi "' productive employee means any employee
workling~ in th~e factory- and included in the factory payroll, and
governedl by the factory regulation.
SECTION. 10. Thne tcerm "L unskilled labor means and includes comn-
man !labor not requriring~r previous training and exc~ludelt s hand and
machine cigar makers, packers, strippers, inspectors,, banders, and
S~ECTION 11. The (term Wa~-tchlman "" means any! employee who~c for
not. less thlan ninety (90) pe~c-entl of hris workinF hours is enfgaedi
in watching andl guarding the premllises of the estab~lishme~lnt.
SECTroN leZ. The term delivcrymalnn~ "' means any emlol~~ycee whose
principal function is the delivery of mecrchandlise, and who dloes nlot
655;-11 --"-- 657-124----34-2
SEcTION 13. The term L outfside salesman means any salesman who
pecrforms pr'incipally the selling function outside the establishment
where he is emlployed, and who may deliver.
S~ECTION 141. The term "' south includes the following States: Ala-
bama, Arkansals, Florida, Geor~gia, Kentucky, Louisiana, Mississippi,
North Carolina, South Carolina, Tennessee, Texas and Virginia.
SECTION 15. The term accredited cigar jobber means any whole-
sale distributor of cigars who maintains a sales organization and
hlas an exclisive selling ar~rangemnent for a brand or brands of cigars
for which he assumes the responsibility of promotion, distribution
and care in a definite t~err1itory assigned to him.
SECTION 16. The term "' cigar service jobber means any wholesale
distributor of cigars other than an accredited cigar jobber.
(A jobber may be an accredited cigar jobber as to a certain brand
or brands and a cigar service jobber as to others.)
SECTION 17i. Thie term "'jobber means any wTholesale distributor
of cigars who buys directly from the manufacturer.
SECTION 18. The term "' sub-jobber means any wholesale distrib-
utor of cigars, wrho puirchases cigars from jobbers or jobbing estab-
lishtments of manufacturers instead of directly from manufacturers.
(A person may be a jobber as to certain cigars and a sub-jobber
as to others.)
SECTION 19. The term retaaier" means any person engaged
wholly or partially for his own account in the selling of cigars di-
rectly t.o the consumer and not for purposes of resale, in any form.
SECTION 20. The term chain of stores means a group of retail
stores having single ownership and maintaining one or more bona
fid cetra dstrbutngdepots from which individual units are
serviced, and also bona fiecnrlbyng trnsprvising and
SECTION 21. The term person includes all individuals, firms,
partnerships, unincorporated associations, corporations and other
forms of enterprise.
SECTION 22. The term State means any State or Territory and
the District of Columbia.
SECTION 213. The term "LAssociation means Associated Cigar Man-
ufacturers and Leaf Tobacco Dealers.
SECTION 241. The term Council means National Tobacco Council,
Inc., a New York Corporation, or such other agency as shall be desig-
nated for the purposes of Schedule I, hereto attached, by the Code
Authority hereby established and by the Code Authorities for the
Wholesale Tobacco Trade and the Retail Tobacco Trade.
SECTION 1. No clerical, accounting or other office employees shall
be permitted to work in excess of forty (40) hours in any one week
or eight (8) hours in any one day and no other employee shall be
permitted to work more than forty (40) hours in any one week,
except as follows:
1 Efrective June 25, 1934. See paragraph 2 (4) of order approving thle Code.
(a) Executive, supervisory, technical and administrative emn-
ployees provided that they receive regularly thir~ty-five dollars
($35.00) per week or more.
(b) Outside salesmen.
(c) Watclunen, providled that no watchmran shall be permitted t~o
work in excess of fifty-six (56) hours in any one week.
(d) Chauffeurs and d~elivery3men, prov~idedl that no such employee
shall be permitted to work in excess of forty-eight (48) hours in anly
(e) Firemen and englneers, provided- that no such employees shall
be permittedl to wo~rk mn excess of forty-four (44) hours in any one
(f) Shipping department employees, prolvided that no such em-
playvee shall be permrittedl to worki in excess of forty-four (44) hours
ine any on ie weeki or eigt 8 hours in an~y one day unless paid at
the ateof ime nd ne-hrdfor all time w~orked in excess thereof.
(g) Prodluctive. employees during twJo peakr seasons per year,
provided that t~he number of weekZs and the number of hours per
week in each season shall be determined by the Code Authority,
subject to the approval of the Atdmainistrat~or.
SECTION 2. No employee except watc~hmen shall be permittedl to
work more than six (6) days in any seven (T) day period.
SECTION 3. The mRXimum hours fixed above shall not apply to
employees onl emnergency repair work- provided that any such emn-
ployee workling in excess of eight (8) hours in any one day or for~ty-
four (44) hjur~s in any one~week shall be compe~tnsated byT at least
time and one-third for all such excess timae.
SECTION 4. All timne worked on Sundlay nd legal holidays, except
by watch men, engineers and firemen, ,hshall; be compenlsatedi at the
rate of time and one-third.
Aarxcra IV *-AGES
SECTIONr i. NO clerical, Rccounting Or Other o~ice employee shall
be paid at a rate of less ~thian fifteen dollars ($15.00) per weekr of
forty (40) hours.
SECcnos 2. NCo watchlmen shall be paid at a rate of less than fifteen
dollars ($15.00) per week of fifty-six (56) hours.
SEcTION 3. NO stripper shall be paid at a rate of less than twenty-
five cents (25() per hour provided that strippers that are classed.
as slow workers up to twenty-five percent (259) of the total number
of such workers, need not receive the miinimumn hourly rate herein
specified, if (1) they are paid thre same piece work rate as paid
other employees of the same class and (2) they are paid at a, rate
of not less than twenty-twfo a~nd one-half cents(221/2 ) e ur
SECTION 4. IflSkilled labor in the South shallbepiatart
of not less than twenty-five cents (25Q) per hour.
SECTION 5. No productive employee engaged in the production of.
stogies or hand madle cigars to retail at not more than two for .five
cents shall be paid less than twenty-seven cents (274) per hour and
no machine cigar operator engaged in the production of cigars made
1 Elective June 25, 1934. See paragraph 2(4) of order approving this Code.
to retail at not more than two for five cents shall be paid less than
twenty-nine cents (~29e) per hour.
SECTION 6j. No cigar maker in the Hand Mlade Industry, except as
provided in Section 5, shall be paid at a rate of less than thirty
cents (300) per hour; exc~epting in the South in which no cigar
maker in the Hand hlade Industryv shall be paid less than twentyr-
eight cents ('284) per hour; provided, however, that cigar makers
engaged in t~he production of cigars other than class A and B cigars
shall be paid at a rate of not less than four cents (44) per hour in
addition to the rate established above.
SECTION 7. No machine operator except as provided in Section 5
shall be paid at a rate of less than t~hirty-four cents (349) per hour
excepting in the Soulth, in which no machine cigar maker shall be
paid less than thirty-two cents (320) per hour.
SECTION 8. NO emlployee other than those for whom specific pro-
vision is made in this Article shall be paid at a rate of less than
t~wenty-eight cents (28ce) per hour.
SECTrION 9. Clgear makers in the Hand Cigar M~anufacturing and
Stogie Mfanufacturing Industry who are classed as slow workers, up
to twenty-five precent (25S%) of the total number of such workers,
aind machine cigar operators, up to ten percent (10%o) of the total
number of such workers, need not receive the minimum hourly rate
herein specified, provided they shall be paid the same piece rate
as paid other employees of the same class.
SECTION 10. Upon applications of any employer, at any time a
higher rate of exemiption for slow workers than is established in
Section 9 of this Article may be established by the Code Authority
with the approval of t.he Administrator. At any time after Septem-
ber 1, 1934, a higher or lower rate of exemption may be established
for any~ par-ticular employer by the Code Authority, with the ap-
provatl of the Adlministrator, after such notice and opportunity to
be heardl as the Admliinistrator may require.
~SECTION 11. All piece rat.e shall be established so as to Jyield the
mininmumi rates of pay provided in this Article and no piece rate
shall be reduced in order to increase the actual number of slow
wrorkiers emnployed by any manufacturer.
ISECTION 12. The wnges of all employees now in excess of the
miinima herein established shall be equitably readjusted.
rSEC'TION 13. Where male and female employees perform substan-
tially the same duties or do substantially the same work, they shall
receive t~he samne rate of pay.
ARTICLE V--G-ENERAL LABOR PROVISIONS
SECTION 1. Employees shall have the right to organize and bar-
galin collec-tively through representatives oftheir owfn choosing, and
shall be free fromn the interference, restraint, or coercion of employ-
ers of labor, or their agents, in the designation of such representa-
tives or in self-organization or in other concerted activities for the
purposes 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 a~ny company union
or to refrain from joining, organizing or assisting a labor organiza-
tion of his own choosing.
SECTION 3. Employers shall comply with the maxsimumn hours of
labor, minimum rates of pay and other conditions of employment,
approved or pr'escribedr ~by the President.
SjECTION 4. No person01 under the age of sixteen (16) years shall be
emlployred in the cigar manufacturing industry.
SECTIO)N [>. No person underc! eigrhteen (18) ye r~s of age shall workz,
or b~e permitted to work, at operations or occupations hazardous in
nature or dettrimnental to health. The Code Authority shall submit
to the Adm~inistrator within sixty (60) days after the effective late
of this Codet, a list of such occupations for his approv'\al.
SEC'ION 6. Employers shall make pay~ment. of all wages in lawful
currency or by negotiable ch-ecks, payable on demand. All contracts
of employment shall prescribe payment of wages at least every two
wFeekls andi salaries at least as often as e~very month.
SectroN 7-. [No prov)\iSion in this Code shall sup~ers~ede anly State: or
Federal law wclhich imposes on employers more stringent require-
mlents as t.o age of employees, wages, hours of workz, or as to safety,
health, sanitary or general working conditions, or insurance or fire
protection, than are imposed by this Code.
SECTION 8. Employers shall not change the methocd of payment
of employees' compensation or reclassify employees or duties of oc-
cup~ntions performed by employees or engage in any other subter-
fuge so as to defeat the purposes of the Act or the provisions of
SECTION O. NO employee paid at a rate in, excess of the minimum
shall be dischrarg~ed and reemp~loyed at a lower rate of pay for the
purpose of evading the~ provisions of this Code.
SECTION 10. All employers shall keep posted complete copies of
the provisions of this Code dealing with hours, wages and conditions
of employment in conspicuous places of easy and continuous access
SECTION 11. Each member of the industry shall comply with such
rules andl regulations with regard to the posting of notices, bulletins
and extracts of Code provisions as may be from, time to timne further
issued byc the Administrator. Such notices, bulletins and extrancts
of Code p~rovisions shall be w-ritten in English and such other lan-
guages as may be in general use throughout the estab~lishment..
SECTroN 12. Every em~ploy~er shall make reasonable provision for
the safety and health of his employees at the place and during the
hours of their employme~nnt.
Standlards for safety and health shall be submittedl by the Code
Authority\ to the Adm~inistratti on within six (6) months after the
effectivet dante of this Code.
,CECTIO, N 1:3. After the effective date of this Codte, age~c s shall be
exe~mpt froml fines and rebattes; anld from. charges~C and dieductions,,
excet. charges and deeductions for employees con~ltributioons volun-
tarily made by emp~loye~es for benefit funds. No emplloyer shall
with~oldl wages excePlt upon service of legal pr~oce~s or other p~aper~s
lawrfu~lly requir~ing such w~ithhold-ingr.
Dedluctions for other purploses not heretofore stated may be made
only when the c~ontranct is in wFriting and is kept, on file by th~e em-
ployer for six (6) months after the termllinat-ion of the contract and
which shall be kept open for the inspection of Government repre-
SECTION 14. At the expiration of nine (9) months after the effec-
tive date of this Code, the industry shall petition the President or the
Administrator to review the provisions of this Code relating to hours
of labor and rates of pay.
AnnICLE V~I' CIGAR RIERCHANDISING~C PLAN"
The Mferchtandising Plan in Schedule I annexed hiereto, adopted
for the WVholesale Tobacco Trade and the Retail Tobacco Trade in
their respective Codes of Fair Competition and hereinafter for con-
venient reference in par~t repeated, is hereby accepted, adopted and
approved; and all of the provisions of the said plan insofar as they
purport to regulate thle conduct of members of the cigar manufac-
turing industry are hereby made rules of fair practice and fair
competition for all members of the cigar manufacturing industry.
The provisions of said Schedule I and of this Article VI may be
amended only by amendment of this Code and of the Codes for the
Wholesale Tobacco Trade and the Retail Tobacco Trade. The said
provisions may at any time be stayed by the Administrator, 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 C~ode Authority established by any one of said three Codes, such
stay to become effective, unless such 'election shall have been mlean-
while wPithdrawn, thirty (30) days after notice of such election shall
have been filed with the Adcministrator.
SECTION 1. As to each of the cigars of his manufacture, each cigar
manufacturer shall record with t~he Council t~he minimum sales p rice
at which such cigar is intended to be sold at retail (exclusive of any
governmental tax or charge thereon required to be paid by the jobber
or retailer) which price, hereinafter referred to as the retail
price sal constitute the basis for computing 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
hlim from the retail price in connection with the several respective
classes of transaction described in subdivisions (a) to (d) inclusive
of Section 9 of this Article VI. The retail price and, within the
limits hereinafter prescribed, the discounts shall be subject to change
at t~he discretion of the manufacturer, provided the revised price or
discounts as thre case may be, be recorded with the Council at least
frele (5) days before the~ change becomes effective unless a shorter
timne be requlired by a cigar manulfactulrer in order to nw~et a comn-
petitor'sr reduction of price which sis nzot in violaction of thi~s mer-
chand-i~sing pla.n.' The retail price shall be prominently mlarkecd on
each container of cigars.
SECTION 8. TOmn t~he recorded retail price, each cigar manufac-
turer shall, as to each of his cigars, grant discounts to be established
SEffectire June 25. 1937-1. See paragraph 2 (1) of order approving this Gode.
Provisions for filing of prices and discounts stayed until further orders. See
paragraph 2 (3~) of order approving this Code.
rItalicized words deleted. See paragraph 2(2) of order approving thle Code.
by him in his discretion 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 anrd other than drop shlipmnent sales under sub~,li-
vision (d) of this Section 2, a discount of not more than twenty-
eight percent (28Cr).
(b) In thle case of sales to nreereitedl cigar jobbers, a discoul~nt, in
addition to the discount which shanll have breen established by the
manufacturer under subdivision (a), of not more than fourllteen
(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 subdivision (a), of not more than sixty-six and(
jobbers. ProvTided, however, that in territories where no accredited
cigar jobber exists, a maunufa-cturler mayT allow a cigar service jobber
a dliscolunt. not to ex~eedl ten percent (10%/) on any particular class
of cigars in addition to thle discount which shalnl have been estab-
lished by the manufacturer under subdivision (a).
(d)j In a territory where a cigar malnu~facturere has an acc~reditedl
cigar jobber, the cigar mlanufactur~er mnay, in his discretion, manke
drop shipments to r~etailers or sub-j'obberls, provided the accredlitedl
cigar jobber agrees to or :requests such shipments; in a territory
where the eigne manufacturers has no neredr~litedl cigar jobber, the
cigar manufacturer ma,z in. his discretion, make drop shipm~ents, to
retailers. Provided that in either, case shipments shall be made
only in quantities of not less than 2,000 cigne~s in the case of Class A,
and Class B3 cigars, and not less than 1,000 cigar~s in the case of
Class C1 or higher classes.
For suchl sales or drop shipments, there shall be establishled~ a dlis-
count for the drop shlipment purchaser, in addition to the discount
which shall have been established by the manufacturer und~er sub-,
division (a), of not more than five percent (5%o), and this d~iiscount
shall be allowed by the manufacturer or Jcbber, whic~hever~ shall
make the billing.
The cigar manufacturer may in connection with each drop ship>-
mnent. sale allowB to the alccreditedl cigar jobber who has req~uested-
or consented to such sale a service credit. Provid~edl, that the total
of the service credit and the discount allowed to the drop shipment
purchaser and the neereditedl cigar jobb~er shall not exeedl the
fourteen percent (~414%) set forth in subdivision (b) above.
(e) In the case of sales to chains of stores, dliscounnts not exceeding
t~he discounts which the mannufactuirer shall have esta~blishedt forl his
sales to accredited cigar jobbers under subdc-ivisionl (b), prrovideed,
however, that eachl ciganr manufacturer may3 determine in his owrn
discretion to which chains, if any, he will makes 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 m~ay allow a further dis-
count of two percent (2%) for cash within his established credit
SNothing herein contained shall prevent any cigar manufacturer
from establishing within the maximum percentage limits herein-
aboe described a different schedule of discounts with respect to
each othesvrlbadiesshpsor prices of his products,
or a schedule of discounts different fo hto n te ia
manufacturer; but each cigar manufacturer shall apply his estab-
lished system of discounts uniformly as to each of the classes of
transactions above enumerated in subdivisions (a) to (d) inclusive,
and wFithin each of the said classes of transactions there shall 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.
SECTION 3. NO manufacturer shall sell cigars at retail to con-
sum~ers except in accordance with the provisions of this merchan-
dising 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 oiler or give a free deal. The
term "' free deal as used in this paragraph means the gift of cigars
or anything of value, or any special deal, discount or allowance con-
ditioned upon the purchase of a product..
SECTION 5. All1 sales by manufacturers shall be evidenced by
itemized invoices showing the retail price and the discounts granted
SECTION 6. UponI the. recommendation of the Code Authority
established by this Code or the Code for the Wholesale To~bacco
Trade or the Code for the Retail Tobacco Trade or upon applica-
tion of any member of the Cigar lIanufacturing Industry or of
the Wholesale Tobacco Trade or of the Ret~ail Tobacco Trade and
the approval of such recommendation or application by the Admin-
istrator, 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 dis-
counts to be prescribed in connection w~ith sales of cigars by any
member of tjhe Industry, and such determination shall be effective
only uponr the concurrence of all three Code Authorities and, sub-
ject to the further approval of the Administrator, such minimum dis-
counts shall be binding: upon all members of the Industry.
SECTION ?. Wherever any of the provisions of this merchandising
plan provide for twfo or more discounts from the retail price, such
discounts shall be compulted separately and successively so that each
succeeding discount shall be computed ulpon the balance of the retail
price remaining after the deduction of the next preceding discount
SECTION 8. Nothing in this merchandising plan shall be construed
to prevent the free and general distribution of articles commonly
used for advertising purposes or premiums, except insofar as such
distribution and use of premiums would constitute, in effect, an addi-
tional discount or a reduction in price below the minima established
SECTION 9. All prices and discounts filed with the Council by
manufacturers, jobbers or sub-jobbers, as hereinbefore provided shall
immediately be reported Iby the Council to the respective Code Au-
thorities for the Cigar manufacturing Industry, The WVholesale To-
bacco Trade and the Rertail Tobacco Tradle. Eachl 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 mag be issued by such Code Authority
with the approval of the Adnulnistraltor as to the publication and
ARTncLz VII--Tnn PRACTICESS
SECTION I. ?8788 Adilue7 4ing.--The making or causing or per-
mitting to be made or published of any false, untrue or deceptive
statement by way of advertising or otherwise concerning the grade,
quality, quantity, substance, character, nature, origin, size or prep~a-
ration of any product of th~e trade, having the tendency and capacity
to misleadx or deceive purchasers or prospe~t~ive? purchasers and the.
tendency injuriously to affect the business of competitors, is pro-
hibited as an unfair method of competition.
SECTION 2. Deceptive Branding.--The infringement of established
trade-marks and the use of trade-mark~s or trade names which will
result in deception of the public or enable dealers to perfect such
deception is prohibited as an unfair mnethod of; competition.
SEcTION 3. False Billing.--No member of th~e industry shall know-
ingly withhold from or inlsert in any quotation or invce any state-
ment that makes it inaccurate in any: material particular.
SacrxoN 4. Inaccurate Labelling.--No memlbe~r of the industry
shall brand or mark or pack any cigar and/or cigars in any manner
which is intended to or does deceiv~e or mislead purchasers withi
respect to brands, grade quality, quantity, origin, size., substance,
character, nature material content, or preparation of suchL cigar
SECTION 5. Inazccuralte References to Com~petitor~s, Etc.--No me-
ber of the industry shall publish advertising which- refers inac-
curately in any material particular to any competitors or their goods,
prices, values, credit terms, policies or services.
SECTION 6. Thrl,18t of La/Lo Suits.--No member of the industry
shall publish or circulate unjustified or unwarranted threats of legal
proceedings which tend to or have thie effect of harassing competitors
or intimidating their customers. Failure to prosecute in due course
shall be evidence that any such threat is unwarranted or unjustified.
SECTION 7. Bribinzg Employees.-N1Jo member of the industry shall
give, permit to be given, or directly or indirectly offer to give, any-
thing of value for the pulrpose of influenc~ing or rewarding the action
of 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 knowledge of such em-
ployer, principal or part~y. This provision shall not be! construed to
prohibit free and general distribution of articles commonly used for
advertising except so far as such articles are actually used for com-
mercial bribery as hereinabove defined.
SECTION 8. COCTCOon..-No member of the industry shall require
that a purchase of any tobacco products or other goods be a pre-
requisite to the purchase of any other tobacco products.
SECTION 9. NO member of the industry shall distribute any cigar
or stogiles, produced by employees paid at the wage rates prescrbe
in Article -~IV, Sect~ion 5 of this Code, unless such cigars or stogies
are packed in, containers clearly marked to indicate to the consumer
that tjhe cigasrs or stagries contained therein are intended to sell at
retail, ait not more than tw~o (2) for five (5) cents.
ARTCLE VJIII-OnCaizarrX~oN, POWERS AN'D DUTIES OF THIE CODE
ORGANIZATION AN'D CONTSTITUTION
SECTION 1. There shall forthw-ith be constituted a Code Authority
co~nsisting of not mloree than thirteen (13) members to be selected as
Sixr (6i) members, three (3) of w~hom shall represent machine cigar
mannu fat urers andi three (3 ) of w~hom shall represent hand cigar
ma~nu factur~ers, selected by the mannufacturers who are members of
the Afssociated- C'igar Alariufact~urer s and Leaf Tobacco Dealers.
TPwo (2) me~mbersr, one of wh~om shall be appointed by the Labor
Advisory Board and one of w~hom shall be appointed by the Con-
stuners Advisory Board of the National Recovery Administration.
Two (2) members, one of w~homn shall represent machine cigar
mIanufacturers and one of wIhom shall represent handt cigar manufac-
turers, selected by anld from~ non-mnembers of the foregaoinga Associa-
tion. Within fifteen (15) days after thle effective date hereof the
other members o~f the Code Authority shall submit to the Adminis-
trator a plan for thec selection of said twoo (12) members which, upon
his -approv-al, shall become ellective.
SECTION 2. In addition to membership as above provided, there
may be not more than three (3) members, to be appointed by the -
Admrinistrator to serve without vote.
SECTION 3. The Asso~ciation and each trade or industrial associa-
t~ion dwee~-t~lyr or ;ndrec~l~rtly prt~icipatingr in the selection or activities
of the Code Auhlor~ity shall (1) impose no inequitable restrictions on
membership, and (2) ~sublmit to the Administrator true copies of its
articles ~of association, by-lawTs, regulations, and any amendments
when made thereto, together with such other information as t~o
mem-lbersh~ip, orgjanizatic ion, and activities as the Adlnunistrator may
deenl necessary to effecitulate the purposes of th~e Act.
S~EcTION 4.- ml Order 11& th1 1, c~de Authorityshall at all times, be
truly representative of the industry and in other respects comply
with the pr~ovisions of the A-ct, the Administrator may prescribe
such hearings as he mayI deem proper; and thereafter if he shall find
that t~he Code Auth~ority is not truly representative or does not
in other respects comply with t~he provisions of the Act, may require
an appropriate modification of the method of selection of the Code
SECTION 5. Nrothinga contained in this Code shall constitute the
members of the Code Authority partners for any purpose.. Nor
shall any member of the Code Authority be liable in any manner
to anyone for -any act of any other member, officer, agent, or em-
ployee of the Code Authority. Nor shall any member of the Code
Authority exercising reasonable diligence ini the conduct of his dlutiezs
hereunder, be liable to anyone for anly action or omiission to act
under this Code, except for his own-i wcillful mnisfeasance or non-
SECTION 6. I~f thre Admninistr~ator shall at any time determine thiat
any action of the Code A~uhority or any agency~ thereof may be
unfair or unjust or contrary to the public inlterest, the Adlministrator
may require that su~ch action be susp~ended to afford an opportunity
for investigation of the merits of such action andr further consliders-
tion by such Code Authority or agrency\ pending final action which
shall not be effective unless the Adminiistrator a p proves or unless
he shall fail to dlisapprove after thirty (30) days' notice to him orf
intention to proceed with such action in its original or modified
POWYERS AND DUTIES
SECTION T. Subject to such rules and regulaltions as may be i~ssuedi
by the Administrator, the Code Authority shall hanve the following
powers and duties, in addition to those aluthorized by other provisjionls
of this Code:
(a) To insure the execution of the prois~ions of this Code and to
provide for the compliance of the industry wlith the provisions of
b)To adopt by-law8Cs and rules and regulations for its pr~ocedulre.
()To obtain ro members of the industry such inlforlmation
and reports as are required for the administration of the Code. I~n
addition to information required to be submitted to the Code Au-
thority, members of the industry subject to this Codet shall furnish
such statistical information as the Achnlinistrator may deem neces-
sary for the purposes recited in Section 3 (a) of the Act to such
Federal and State agencies as he may dlesignate; provided that
nothing in this Code shall relieve any member of the industry of any
existing obligations to furnish reports to any G~overnme~nt agency.
No individual report shall be disclosed to any other member of the
industry or any other party except to such other Governmental
agencies tas may be directed by the Admninistrator.
(d) To use such trade associations and other agencies as it deems
proper for the. carrying out of any of its activities provided for
heein, provided that nothing~ herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply wijth the provisions hereof.
(e) To make recomnmend~ationls to the Admlinistrato~r for the co-
ordination of the administration of thiis Code wit~h such other codes,
if any. as may be related to or affect members of the industry.
(f) (1) It beinga found necessary to support the administration of
this Code, in order to effectuate the policy of the Act anld to maintain
the standards of fair competition established~ hereunder, the Code
Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes an~d 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 t~he Administrator for his approval, subject
to such notice and opportunity to be heard as he may deem
necessary-, (1), a.n itemized budget of its estimated expenses for
the foregoing purposes, and (2), an equitable basis upon which
the funds necessary to support such budget shall be contributed
by all members of the industry;
(c) After such budget andl basis of contribution have been
approved by the Administrator, to determine and collect equit-
able contributions as above set forth, and to that end, if neces-
sury', to institute legal proceedings therefore in its own name.
(2) Each member of t-he industry shall be liable: for his or its
equitable contribution to thle expenses of the maintenance of the
Code Authlority as hereinabove provided. Only members of the
iudustry complying writh the Code and making such contribution
shall be entitled to participate in the selection of the members of
thie Code Authority or to r~eceie! the benefits of its voluntary activ-
ities or to make use of any N.R.A. insigania.
(g) To cooperate w~ith the Admninistrator in regulating the use
of any ~N.RE.A. insignia solely by those members of the industry who
are complying with this Cod~e.
(h) To recommend to the Administratorr any action or measures
deemed adlvisable, including further fair trade practice provisions
to govern members of t~he indlustry in their r~elations with each other
or with other industries; measures for industrial planning, and sta-
bilization of emp~loymnent; and including modlifications of this Code
which shall become effective as part her~eof upon approval by the
Admninistrator after such notice and hearing as he mlayI specify.
(i) To appoint a Trade Practice Committee which shall meet with
the Trade Practice Commnittees appointed under such other codes as
mayS be related to the indusitry~ for the purpose of formiulating fair
trade pr~c~tices to govern the relationships between employers under
this Code and such other codes to the end that such fair trade prac-
tices mnay be proposed to' the Administrator as amendments to this
Code and such other codes.
S(j) To provide appropriate facilities for arbitration, and subject
to the aplpr~oval of the Admninistrator! to prescribe rules of procedure
andl rules to eftfect. compliance with awards and dete rumination.
SFcrwrIN 8. Any memberP 1 of t~he induslltry~ mayr subm)iit, data tend~ing
to prove that suchI m~embelr is plaecd at. a competitive diisadvantaRge
withl, or is subject to different economic condlitionis to those of other
miemibers of the industry; and thle Code Authority miay, after in-
vestigation, recommelndclr to the Admninistrantor that. change be mlade
in the Labor Pr~ovisions ;of this Codce, and upon alpproval by the
Ad'minlistra;-tor, after such notice andi hearing as hie may speci fy,T
such new\7 p~rov\isions shall become ettfectiv~e for that member of thle
SECTION. 9. Wh~l~lenevr any question may arise under this Code as to
the conllstrulctfion andt mleanling of anyi portion thereof, the Code
Authority may~ issue such interpr1etationss as mnay be necessary\ to
effectuate the opelrantion of and compliance withl thie policy of the
Act., ubllject at all times to the approval of the Administrator andt
suich inter~pretat ionis a pproved- by the Administrator shall become
opera,tive as a pnr-t o~f this C'ode.
SECTION 10. No provision of this Codle shall deny to any member
of the industapa otry or to any party ini any proceedlinga the right to
appaltoth Aminist-tcrto nor prevent, at any time, direct, appeal
to himn from any determination of th~e Code Authority. TIhe Code
Authority mnay, if it chooses, invyokre the procedure prov-idedi for in
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the Presid'ent, in accordance with. the
provisions of sub-section (b) of Section 10 of the Act, fromr time to
time to cancel or modify any order, approval, license, rule or regula-
tion issued undler said Aclt.
SECTION 2. This Code, except as to provisions required by the Act,
mayT be modified on the basis of experience or changes in circum-
stances, such modifications to be based uponl application to the Ad-
ministrator anld such notice and hearing as he shall specify and to
become effect ive on. approval of the Administrator.
ARTICLE X--AfOlNOPOLIES, ETa.
No provision of this Code shall be so. applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
The provisions of this Code shall not apply to the Territory of
Puerto Rico, but its provisions shall apply to the marketing of
Puerto R~ican cigars, by the manufacturers thereof, in the United
AnTICiz XZII-FECT IlVE DATE
This Code shall become effective on the date specified by the
President in his order of approval.
Approved Gode No. 467.
Registry No. 1615--13..
SCHEDULE I "
CIGAR nIFRCHANDISTING PLAN'
A. BALES BY CIGAR& MANUFACTURERS
SecIroN 1. As to each of the cigars of his manufacture, each cigar mann-
facturer shall record w~ith the Council the minimum sales price at which such
cigar is intended to bie sold at retail (exclusive of any governmental tax or
charge thereo~n required to be paidi 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 the several respective classes
of transaction described in subdivisions (a) to (d) inclusive of Sec~tion 2 of this
Division A. The retail price and, within the limits hereinafter prescribed, the
discounts shall be subject to c~hnage at the discretion of the manufacturer, pro-
videdl the revrisedt price or discounts as the case may be, be recorded with the
Council at least filve (.5) days before the change becomes effective unless a
shorter fimne be requtired bU a cigar mlanufacturerr in order to meet a. cont-
pet~itor's red~uctionl of price whlidch i not inl 2iolastioin of this merchandisinlg
planr." The retail price shall be promine~ntly marked on each container of
SEcTION 2. Frorm the TOcorded retail price, each cigar manufacturer shall, as
to each of his cigars, grant discounts to be established by him in his discretion
within the limits hereinafter in this Section 2 prescribed, as follows:
(a) In1 the caise of sales, if any, to retailers other than sales to chains of
stores and other than dro~p shipmient sales under subdivision (d) of this Section.
2, a discount of no~t m1ore than twenty-eight percent ('28%).
(b) In the case of sales to accredited eigar jobbers, a discount, in addition
to thre discount whiich shall have been established by the manufacturer under
subdivision (a), olf not more than fourteen percent (14%.).
(c) In the case of sales to cigar service jobbers, a discount, in addition to
the disco-unt which shall have been established by the manufacturer under
subdivision (a), of not more than sixty-six and two-thirds percent (66%%)C~
of the established discount to accredited jobbers. Provided, however, that in
territories whlere no accredited cigar jobbers exists, a manufacturer may allow
a cigar service jobber a discount not to exceed ten percent (10%~) on any
particular class of cigars in addition to the discount which shall have been
establishedl by the manufacturer under subdivision (a).
(d) In a territory where a cigar manufacturer has an accredited cigar
jobber, the cigar manufacturer may, in his discretion, make drop shipments to
retailers or sub-job~bers, provided the accredited cigar jobber agrees to or
requests such shipments; in a territory where the cigar manufacturer has no
accreditedl eignr jobbier, the cigar manufacturer may, in his discretion, make
drop shnipmets to retailers. Provided that in either case shipments shall be'
moade only inl quantities of not less than 2.000i cigars in the case of Class A'
and Class~ B eigar~s, and not less than 1,000 cigars in the case of Class C orl
For suchl sales or drop shipments, there shall be established a discount for.
the dlrop shipmentn purchaser,. in addition to the discount which shall have
been established by the manufacturer under subdivision (a), of not more than
ftive percent (5L%), and this discount shall be allowed by the manumecturer or
jotbber, whiche\'er shall make the billing.
SEffective June 25, 19341. See paragraph 2 (1) of order approving this Code.
Provisions for filing of prices and discounts stayed until further orders. Bee
paragraph 2 (3) of order approving this Code.
Italicized words deleted. see paragraph 2 (2) of order approving this Code.
The cigar manufacturer may in connection wvith each drop shipment sale
allow to thte accredited eigar jobber who has requested or consented to such
sale a serv-ice credit. Provided, that the total of the service credit and the dis-
count allowed to the drop shipment purchase and the aceredlited cigar jobber
shall not exceed thie forteen percent (14%r) set forth in subdlivisiuo (b) above.
(e) In the case of sales to chains of stores, dliscuunts not exceedling the dis-
co~unts which the manufacturer shall have establishedd for his sales to accredited
eigar jobbers~ under subldiv-ision (b), provided, however, that each cigar manu-
facturer mlay determline in his own dliscretion to which chains, if any, he will
make direct sales and, within the limits hereinabove prescribed, the amount of
discounts on each such sale.
O~n each~transactio~n in any of the categories (a) to (d) inclusive above de-
scribed, thie eigar manufacturer may allow a fur-ther discount of 2%r for cash
within his established credit terms.
Nothing herein, contained shall prevent any cigar manufacturer from estab-
lishinlg w\ithin the maximum percentage limits hereinabove prescribed a differ-
eat schedule of discounts with respect to each of the several brands, sizes~,
shapes or p~ric~es of his products, or a schedule of discounts different from that
of any other cigar manufacturer; but each cigar manufacturer shall apply his
established systems of discounts uniformly as to each of the classes of trans-
actions above enumerated in subdivisions (a) to (d) inclusive, and within
each of the said classes of transactions there shall in no case be any individuals
variation or variations from the discount or discounts so established by suchi
cigar manufacturer. The service credits provided for in subdivision (d) need
not be uniform and may vary in each individual case.
SECTION 3. NO manufacturer shall sell cigars at retail to consumers except
in accordance with the provisions of this merchandising plan relating to sales
by reta ilers; but the provisions of this merchandising plan shall not apply to
any cigar manufacturer who sells exclusively and directly to the consumer.
SECTION9 4. NO IRRBufaeturer Shall offer or give a free de~al. TChe term '" free
deal" as used in this paragraph means the gift of cigars or anything of value
or any special deal, discount or allowance conditioned upon the purchase of a
S~aro 5. All sales by manufacturers shall be evidenced by itemized invoices
showing the retail price and the discounts granted therefrom.
B. 8ALESJ BY JOBBERSG AND BUBJOEEBBERS
SECTION 1. Each jobber shall record with the Council the discounts and credit
terms (not exceeding the discounts which such jobber shall have received fromt
the manufacturer) to be allowed by the jobber from the retail price in connee-
tion with all resales of cigars which in his discretion he may make to sub-
jobbers. Such discounts shall be subject to change at the discretion of the
jobber provided that the revised discounts be recorded with the Council at
least three days before the change becomes effective sa~less a shorter time be
reqtir~ed in order to meoet a co~mpetilor's reduction of pr-ice which is not inr
Yiolatione o~f this merchaindising plan and the discounts so recorded shall so
long as effective apply to all such resales by the jobber to subjobbers and there
shall in no case be any individual variation or variations from the discount or
discounts so established.
Suc~IroN 2. Each jobber and eachr sub-jobber shall record with the Council the
discounts and credit terms (not exceeding the discounts from the retail price
wfhichl such jobber or sub-jobber shall have received from. the manufacturer or
jobber, as the case may be) to be allowed upon all resales of cigars to retailers.
Suchl 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 least
three dla~r before the change becomes effective ualerss a shorter time be required
in order to meet a competitor's redluctionr of pr~ice zok~ic~h is not in violation of
this m~erchandisinrg plan;' and the discounts so recorded shall, so long as effee-
tive, apply to all such resales to retailers and there shall in no case be any
individual variation or variations from the discount or discounts so established.
SECTON 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 this Code.
S~morrN 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.
SnorroN 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. saLES BY RET~AILERS
SEcntro 1. In the case of all cigars purchased by retailers from eigar manu-
facturer~s, jobbers or sub-jobbers in connection with which a retail price shall
have been r~ecorded by the manufacturer as hereinabove provided, the retailer
s~hall sell such cigars at retail at not less than the retail price so recorded,
provided, how~ever, 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 five
cents (Ge) each) a discount may be allowed of not more than five percent (5%)
from the retail price, and (2) in the case of sales at retail of boxes of twenty-
five (25) cigars or more a discount of not more than eight percent (8%0) from
the retail price may be allowed unless the cigar manufacturer shall record
with the Council and mark a box price thereon involving a discount of less
than eight percent (8%c) in which case the mlarkied box price shall be observed
as a minimum, and (3) the 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 (50) cigars sold. In the case of any retailer granting a cash dis-
count upon all purchases made, any sales of cigars shall be excluded in com-
puting the cash discount to be allowed, or the amount of cash discount shall be
Zncludedl in thle price of the merchandise sold in addition to the minimum
prices herein provlided.
SECTIO0N 2. 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 (other than
a tax payanble 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.
SECT'ION 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 com-
plete ~final liquidation of any business or merchandise donated for charitable
purposes or to unemployment relief agencies, provided that all such merchandise
shiall be advertised, marked and sold as such and thiat a strip label shall be
placed neross the inside lid label of box goods to be disposed of, stating the
reason the Said merchandise is beings sold belowv the prescribed prices therefore
sad provided further that such merchandise shall be disposed of pursuant to
any regulation as to the manner of such disposal as shall be issued by the
Code Authlority subject to the approval of the Administrator.
SactroN 4. Except as in this merchandising plan otherwise expressly pro-
vided whierev-er under any of the provisions of this mlerebandising plan any
cigar is required to be sold at retail at a minimum price, such minimum retail
price shall not be reduced directly or intdirectly or by any device or subterfuge
such as the giving of any3 trading or merchandise coupons, prizes or premiums
or any other thing of value or discount, rebate, refund, commission, credits or
allowvance~s wh'lether in the form of money or otherwise; nor shall ntan retailer
offer or extend special service or priv~ilege to any customer which is not
available to all customers.
D. MIINIMUM~h DISCOUNTS
Upon the recolmmendation of the Code Auth~ority estabilished by the Code
for the Cigar Rlanufacturing Indlustry or the Code for the W'holesale Tobacco
Trade o:r the Codie for thle Retail Tl.bneco Trade or upon application of any
member of thle Cigor blanufacturinlg Indlustry or of the W'holesale Tobneco
Trade or~ of thle R~etail Tobalcco Ti'rae andi thle approval of such rezcoimmenda-
tion or apprliention by the Adlministrator, thle Code Author~ities established by
the said seve~ral codes, shlall, upon suchI nOtiice and opportunity to be heard,
if any, as the Adminictrator may requiire, determine by joint action minimum
discounts to be prescribed in conn~ctiojn with sales orf cigars by any member
of said Industry or Trades and suc~h determination shall be effective only upon
the concurrence of all three Code Authorities and, subject to the further
approval of the Administrator, such minimum disco0unts shzall be binding .uport
all such members.
E. PRVSIONS ABPPIOAL TO A4LL BALES OF CGBGAR
Smarow l~. Wherever any of the provisions of this mecrchandiising plan pro-
vide for two or maore discounts from the retail price, such discounts shall be
computed separately and successively so that each succeeding discount shall
be compurlted upon the balance of the retail price remainingg after thle deduction
of the next preceding discount provided for.
SErenoN 2. Any change in the retail price shall be applicable as at the effectiv-e
date of such change to all merchandise thereafter sold by wYholesale dist~ribl-
utors, or retailers, but wholesale d ist i~u t ors may, notwithstanding a ny redue-
tion of the retail price, dispose ~of existing stocks on the basis of the retail
price prev'ailingr when such stocks wvere acquired.
SEcoFIO 3. Nothing in this merchandising plan shall be construed to prevent
the free and general distribution of articles commonly used for advecrtising
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.
SECTION 4. All prices and discounts filed with the Council by mnu~nlfnfucurrer
jobbers or sub-jobbers, as hereinbefore provided shall immedtiately be r~eported
by the Council to the respective Code Authorities for the Cigar Mlanufalcturing,
Judustry. the Wholesale Tobacco Tradte and the Retail Tobacco Trade. Eac'h
such Code Authority shall cause such prices and discounts to be made available
to all members of its respective indlustry or trade and shall comlply with any
regulations which may be issued by such Code Authority with the approval
of the Administrator as, to the publication and dissmiato thereof.
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