NATIONAL RECOVERY ADMINISTRATION
COD1E OF FAIR CO)M PE TITI ON
For sale by the Superintendent of Docruments. Washington, D.C. - Price 5 centsr
Approved Code No. 507
Registry No. 162841
%fE DO OUR PART
COVERNBIENT PRINTING OFFICE
AS APPROVED ON AUGUST 24, 1934
This publication is for sale by the Superintendent of Documents, Government
Pr~inting Office, Was~hington, D.O., and by' district offices of the Bureau of Foreign
and Domnestic Clommelrce.
DISTRICT OFFICES OF THE% DEPARTMENT OF COMCMERCE
APLtlanta, Ga.: 504 Post Office Building.
Birming~ham, Ala.: 257 Federal Building.
Boston, M~ass.: 1801 Customuhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North W\ells Street.
Clevelanld, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
D~etroit, Mlich.: 801 First National Bank Building.
H8ouston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building,
Kansas City\, Mo.: 1028 Balltimore Avenue.
Los Angeles, Calif.: 1163 South Brondway.
Louisville, Kyj.: 408 Federal Building.
Memphis, Tenn. : 229 Federal Building.
M~inneaplisi~ Minn.: 213 Federal Building.
New Orleans, La.: Rooml 225-A, Customhouse.
New Ylork, N.Y.: 734 Custombhouse.
Norfolk, Va.: 406 E~ast Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: C:Immber1 of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
Ban Francisco, Calif.: 310 Custombouse.
Seattle, Wlash.: 800 Federal Offce Building.
ApprovFed~ Code No. 507
COD)E OfF FAIR COMPETITION
SURGICL DISTRIBUTORS TRADE~
As Approved on AQugust 2;4, 1934:
APP~OVING CODE O~F FAIBR COMlrPETITION ~FOR THE SURGICABL DISTRIB-
An application having beetn duly made pursuant to and in full
compliance with the provisions of T'ile I of th~e National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Surgical Distributors Trade, and hearing
having been duly hel3d thereon and the annexed report on said code,
containing findings with respect thereto, having been made and
directed to the President:
NOW, THEREFORE, on behalf of the President of the U~nited
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Eixecutive Orders of the Presi-
dent, includingg Executive Order No. 65-13-A, dated December 30,
1933, and otherwise; do hereby incorporate bly referencee said annexed
report and do find thiit said Code complies in all respects wgpith the
pertinent provisions and will promote the policy and purposes of
said TIitle of said Act; and do hereby order that said Code of Fair
Competition be and it is hereby approved; provided, however, that
at such time as I may direct there shall be a further hearing on such
of the provisions of said Code as I may designate, and that any order
which I mays make-P a fter such hearingr shall have the effect of a con-
dit~ion onl the approval of said Code; provided, further that the
following changes be, and the same hereby are, made:
(1) That Section. 9 of Article II be, anld the same hereby is
amended to read as follows:
"L Outside SalTesmen. -Thle term 'outside salesmen as used herein
shall mean a salesman who is engaged less than sixteen (16) hours
per week inside the establishment, or any branch thereof, by which
he is employed.'"
(2) That Section 10 of Article II b, and the same hereby is
amended to read as follows:
'" Outside Collectores.--The term. outside collectors as used herein.
shall mezD a collectOr Of accounts who is engaged less than sixteen
82308 '---1844--1 09-34 (141)
(16) hours per week inside the establishment, or any branch thereof,
by which he is employed."'
(3) That the last two paragraphs of Section 1 of Article III be,
and the same hereby are~ amended, to read as follows:
No employee shall be perm~itted to work for two or more estab-
lishments a greater number of hours, in the aggregate, than he would
be permitted to work: for that one of such establishments which
operates upon the lowest schedule of working hours."
"L No employee not included in the foregroing paragraphs, and not
specnifically excepted htereinafter, shall be permitted to work more
thnforty (40) hours in any one week, nor more than eight 8k
hours tinny one day, nor more than six (6) days in any onewe.
(4) That Section 4(a) of Alrticle III be, and the same hereby is
amended, to read as follows:
TIhe maximum periods of labor prescribed in Section 1 of this
Article shall not apply to professional persons receiving more than
$35.00 per week, wvho are employed and working at their profession,
or to outside salesmen ancd outside. collectors and watchmen. Watch-
maen may be permitted to work a maximum of fifty-six (56) hours
per week but no watchmen shall be emlploy~ed for more than six (6)
days mn an~y seven (7) day period."
(5) T~hat Section 4(b) of Article III be, and the same hereby is
amended, to read as :followFs:
"' Maintenance and outside service employees may be permitted t~o
work a tolerance of ten (10%7) percent in excess of t~he maximum
hours hereinabove set forth, provided they are paid one and one-half
times their normal rate of pay for all hours worked in excess of the
maximum hereinabove set forth."
(6) That Section 6 of Article IV be, and the same hereby is
amended, to readl as follows:
'" Handicalpped persons.--A person whose earning capacity is
limited because of age or physical or mental handicap or other in-
firmities may be employed, on light work at a. wage below the mini-
mumn established by this Code if the employer obtamns from the States
authritydesinate bythe United States Department of Labor
certificate authorizinghiemomntasuh agsndfruc
hours as shall be stated in the certificate. Each employer shall file
monthly with the Code Authority a list of all such persons employed
by him, showing the wages paid to, and the actual hours of wFork~ for
(7) That Section 10 of Article. IV be, and the same hereby is
a 1Veekly wagest~ abose minimnuml n~ot to be reduced ---The weekly
wsages of a~ll clrassesc of employeesP receiving more36 than the minimum
wages prescribed in this Art~icle shall not be reduced from the rates
existing upon July 15, 1933, notwithstanding any reduction in the
number of working hours of such employee."
(8) That Section 4 of Article ~V be, and the same hereby is
amended, to read as follows:
Every employer shatll provide for t~he safety and health of em-
ployees during the hours and at the places of their employment.
Standards for safety and health shall be submitted by the Code
Authority to the A~dm~inistrator within three (3) months after thie
effective date of thte Code."'
(9) That Section 6(c) of ~Article VI be, and the same hereby is
amended, to read as follows:
To obtain from members of the trade such information and
reports as are required, for the admrinistration of the Code. I~n
addition to information required to be submitted to thre Code Au-
thority, members of the trade subject to this Code shall furnish such
statistical information as the Admainistrator may deem necessary for
th~e purposes recited in Section 3(a) of the Act to such Fiederal and
State agencies as he may designate; provided that nothing in this
Code shall relieve any mlember of the trade of any existing obliga-
tions to furnish reports to any Government agency. No indlividual
report shall be disclosed to any other member of the trade or any
other party except to such other governmental agencies as mnay be
directed by the A~dministrator."
(10)n" That Section 6 of Article VTII[I be, and the same hereby is
No member of the trade shall imitate or simulate any design,
style, brand, trade-mark, sloga n, or other means of identification
owned by anly other member of the trade in such a manner as has
the tendency or capacity to mislead or deceive purchasers. In order
to make this provision effective, the ~Association m~ay pr ~~tovide for the
establishment of an APgenrcy for the registrationofurilintu
m~ents of original and useful design. Thie provision of Ithis Section
shall not supersede any State or Federal Laws, but shall be supple-
(11) That Section 7 of Article VIII be, and the same hereby is
HUGoH S. JoHNSON
Administrator for Industrimal Recovery.
GEO. L. ]BERRY,
August 4, 1934t.
REPORT TO THE PRESIDENT
The Whi~ite How~e.
Sma: This is a report on the Code of Fair Competition for the Sur-
gicall Distributors Trade, the? hearings having been conducted in
Was~Lhington on the 27th day of November, 1933, in accordance with
the provisions of Title I of the National Industrial Recovery Act.
The Surgical Dist~ributing Trade is a widespread Trade with
retail establishments or agencies in most of even the relatively small
cities. I~n 1929, there were five hundred and seventy-four (574)
retail establishments which had net sales of over thirty-one million
($31,000,000.00) dollars. The number of distribution wage earners
wass the same in the first half of 1932 as in 1929, which was aIpproxi-
matelyg th ree thousand. Since June, 1932, reduction in net sales have
been accompanied by reduction in distribution employment so that
in the first half of 1933 net sales per distribution wage earner was
about forty per cent belowc those of 1929.
HOURS AND WAGES
T'he Wag;e Hour provisions of this Code are the same elective pro-
visions regarding wages, work~ hours and store hIours, that are inl-
cluded in the Approved Code for thre General Retail Trade.
~ECONOM~IO EFFECT OF THE CODE
There will probably be very' little increase in employment in this
trade as a result of the Code because the majority of the est~ablish-
mnents n1owl covered by this Code~ wPere operating under the General
Retail Trade! Code.
The Deputy 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 T~itle I[ of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tetcnd to diminish the amount thereof and will pro-
vide for the gEeneral welfare by promoting the organization of
Trades foqr the purpose of cooperative action among trade groups,
byT inducing and. mainataining united action of labor and manage-
ment under adequate governmental sanctions and supervision, by
eliminating unfairr competitive practices, by promoting the fullest
possible utilization of thle preselt productive capacity of industries,
by avoiding unldue restrictions of production exceptt as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducin g and relievPing unemnployment,by improving standards of
labor, and b~y otherwise rehabilitating industry.S
(b) Said ~Trade normally employs not m~ore than ~fifty thousand
employees; and is not classified by me as a major Trade.
(c) The Code as approved complies in all r~espe~cts with the
pertinent provisions of said Title of said Act, including without
limitation Subsection (a) of Section 3, Subsection (a) of Section
7, and Subsection (c) of Section 10 thereof ; and that the applicant
association is a tradet association truly r~epre~sentativipe of the afore-
said Trade; and that said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The Code is not designed to and will1 not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) 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 these reasons this Code has been~ approved.
Huanr S. JoHNwon,
AUGUnST 24, 1934.
CODE OF FAIR COMPETITION FOR SURGICAcL
To effectuate the policies of TIitle I of the National Industrial
Recovery Acet, the following provisions are established as a Code of
Fair Comnpetition for the Surgical Distributors Trade, and its provi-
sions shall be the standards of fair competition for such trade, and
shall be bindiing upon every member t-hereof.
Wherever used in this code or in any schedule or amendment
her~eto, the terms hereinafter defined in this Article, shall, unless the
context shall otherwise clearly indicate, have the respective meaningrs
in this Article set forthi.
SECTION 1. Su'g'i:cal D3istril utore4' Trade.--The term Sur~gical Dis-
tr~ibutors Trade ", as used herein shall mean the distribution except
wholesale distribution. of instruments, appliances, apparatus, and
articles used or p~rescribedt by physlicians, surgeons, hospitals andl
nurses, in the diagnosis of disease anrd the care, tr~eatment. and relief
of thre sick,! lame, ruptured and injured, except suchl articles the
distribution of which are gov~ernedl by another approved code or
SECTION 2. Member of the Trade.-T'Ihe term member of the
trade or member ", as used hereinl, shall mean any individual,
partnership, association, corporation or other form of enterprise
engaged in. the surgical trade as defined above, either as an employer
or on his or its own behalf.
SE( TION 3. Pr'esidenPt, ACt and .Admz~inistra~or.-The sterns Pr~esi-
dent ", "'Act ", and '"A'dministraftor as used herein mean, respec-
tively, the Pres~ident of the United States, Title I of the National
I~ndustr~ial ~Recovery Act, and the Administrator for Industrial
SrenowN 4. Establish 71entf.-Tl~he term "' establishment ", as used
herein, shall mean any store or department of a store! shop, stand or
other place of business where such trade, as defined in Section 1 of
this AIrticle, is ca rried on.
SECTION 5. Employee.-The term "L employee "', as used herein, in-
cludes any and all persons engaged in the trade, however compen-
sated, except a member of the trade.
SECTION 6. Em~ployer.- Thh e term "L employers ", as used herein, in-
clude~s anyone by whom anly such emnployree is compensated or
SrECtION 7. Bozcth.-Thke term "L South "' as used herein shall mean
V~irginia, WTest Vir~ginia, M/arylanld, Nlorth Carolina, South Carolina,
Georgia, F'lorida, K~entucky, Tennessee, A~labamla, MIississippi, Ar-
kansas, Louisianla, Okilahoma, New M~exic~o, Texas, and the District
SECTION 8. PopedationU~.--The term "pop~ulatio~n ", as used herein,
shall be dletelrmined~ by reference to the latest Feder~~lal Cetnsusi.
SfECTION 9. Outside salesze~n.-T-'he terml outside sa1~llesmn as
used herein shall metan a salesman whoe is engaged nlot le~ss than sixzty
(60) p~erient ofl his workling hours ourt ide the establishment, or any
branch thler~eof, by w~7hich he is employed.S~l
SECTION 10. Outsidell collector.-The term outsidee collector" as
used~ herein~ shall mlean a collector of accounts who is eneaged~t~c not
less than sixty (60) percen~c!t of his w-orkring hours oultside the estab-
lishmlnent, or any bran1ICh) thereof, by which he is emnployed.2
SCEC.TrroN 1. Basic store~ andc week'Xi~ing hourll.---On and after the
effec~tivec date~ o-f this Code establishments in th~e SuIrgical D~istribut-
ing Trade shall e~lc-t to operate upon one of thle following schedules
of hours of business and hours of labor.
Group) A. Any etabtl~lishmlent mlay elect to remain open, for business
less thanll fifty-six (56) hours but not less than fifty-two (33) hours
per week, unless its hours'~ of bullsinessr wTere less than fifty-two (52)
hours prior to June 1st, 1933, in which case such etab~~.lishmIlent~ shall
not reduce its hours of business; no employee of these establishments
shall wvorkr more than forty (40) hours per week'l, nlor more than eight
(8) hours per dlay, nor more than six (6) days per w~eekz.
Group B. Any etabtull i shmenlt: may elect to Itrlunninr open for business
fiftyt-six (56) hours or m-ore per week but less than sixty-three (63)
hours per wreek; no emloyesc~( of whl~l establishment shall w\Pork more
than. forty--four (44) hours per weekcl, nor mnore than nine (9) hours
per da~y, nor more than six (6) days per week.
Group C. Any establ.lishment~l may elect to remna~in open for bus~inetss
sixty-thnree (63) hours or more per week; no emlployee of such estab-
lishmienlt shall work more than forty-eight (48) hours per week, nor
more than tenl (10) hours per dlay, nor more thanr six (6) days per
No employee shall work for two or more establlishmlllentsi a greater
nlumb~er of hours, in the aggrega-~te, than he wo-culd- be permitted to
work for that one of su~ch estab~lis~hmnents which oper!ates upon the
lowest schedule of w~orkt\ingr hrcsli.3
No employee not inclulded in the fore~going p~aragraphsl~ and not
specifiedlly excepted hereinnfter, shall workr more than forty (40)
hours in any one week, nor more thanl eight (8) hours in any one
day, nor more than six (6) days in any one week.5
SECTIO;N 2. XChedzck8 Of lA/jlr to be postedr.-- On. or within one
weekr after the effective date of this Code every mlt111embe of this Trade
sha~ll designate under which of the Groups set forth in the precedlingr
Section it elects to operated and shall ~ost. and maintain in a con-
spiculous place in tfhe establishment a copy of such election showing
its hours of bus~inecss andl employee wor~llking hours.
1BAmended--See panralgraph 2 (1) of order approving this Code.
A~mended--See paragraph 2 (2) of order approving this Code.
iAmzended-SEee Paragraph 2 (3) of- order approving this Code.
SECTION~h 3. Clanges in -vflpr JoulrS and emp~llO?/ff I'Oi'dei thy 140&7.-
(a) No es~tab lishmenC~lt may\. changLe from the Gr~oup' in wThich1 it has
celected to operlate excep~lt u~pon Dece-mbler 31 of every3 y-ear.
(b) Any establrishmentllt however~-l, mayT at any time increase its
hours of business, provided it malinta;ins~ the b~asic empllloye~e wTork
week of the Gr oupII1 in wnchich it or 4i inaliv' iltete to operate.
(c) A"ny es~tablishment'll maly, forl a per!iod1 not. to exceed three (3)
months d~uring- the Summner, temporarily r~educ~e its hours of busi-
nerss, bult the woeekjly we:I~- yes o its emloyeeli~~rs hull notrl o lntht nCcoulnt.
be Ilrll need.
.Sernex.1 43. E.l---- I' "' tr o maimuml~l:Lt jrrll-lo,/. of labor,.-(a) P~ofes-
,vai/lrd p~l~r es nl ut.-idfE slesen outrS9Cr ClfideI. COlleC?toS, andir ll-atChmeni..
Thle malximum~l p~eriods of labor- plrescribedl in Section 1 of this ~Ar-
ticle shall not apply to professional p~ersonl employedi and working
at their pr~ofow~innl or to oultscide~. : le~-llnen, outside collectors and
wvratchmetn. WtYlChmen1' 1 maltY be penal~tted to wTork a maximum of
fifty-sixi (TjC) hours per weekf but no wtatchmrlan shall b~e emloyed,\ cc
for more than six; (G) dacys in any seven (7) dlay per1iodl.4
(b) Ma~int~enanrce andi outi.-idel service em~plOyeesP may be perm'!itted
to wTorkr inl excSs'' of thle roax~illnoni hour
for all hi~ourlS wo.~ilrld inl excess of the.~ maximumli hereinabove set for~th.5
(c)T'h pir m-su of1l ~1;1 thi1 Art.:icler .Clhall not aply~lT tol persons enI-
gagedl mna Iranagerc~lial, exeenlli\tiv, or` supelrn~l'so~~ry capacity, or sur-
gicali appiance fitters, proviliedl all such per mans" hereintll ellnumerated~
are p~aid at least $35.00 per wreek.
(d) Any~ employee~-v may be worked in excs(l of the maim~si~ um dailyv
andll wi~teeky hours sp~ecifiedc in this Ar~ticle ;1)I l apliCab]let to himl, prd.(-
videdl that cam-~ and one-hlalf times his- normal houlrly3 ra~te shall b~e
paid flor all time w\tor~led inl excess of the maximum diailyr and we-tekly
hours as hlereinabove~ seti fortht. In no cazse, howFever, shall any em-
p~loyee be perm~itt(. t o unrk1'1 more thani~ iht, 8 hours l.Iin an~y oner
and ::l)ilkablelr to htim.
SE<.ne 51.I. Hiouris of ,IorkiX to be I.'il, all r !;,c.-The ho~ur., w~ork-ed ~by
any" emlploytc. dluringS eachr c.ay shl31l e ilrltConven\tive roidedl.i~t( that -an
ii~!i\nf ri-al t Xolonger than one hour m~ay be '-llowed for- each' rular
me~a3. 'l pel,:iriod and CI suhiti'rva:l not~ CounlltedI aCs part1' of thle employI~\'ee s
work(ing~i l timne. Any resif prioiild whlichl muay be gSiven empilloy,!ee~ shall
not fbe diellct~m-te from1 sue ch emp:l loyee"<- workl'lillg timc.
Sr.-:TT~Tro 6.F, 71 a( j-orLiL itour on111 one d92saay ac u.i.----On91 .,i~ o ine d
e~a@l ch eek rlmpi3rloy.- muay workr onelr etran hourr, burt such~l hour~l is to
be ine2cc~lud withiin thez nmx:1iionunl hours;~ 1wan'ii~tted each~ we
SeCrms'TO 7., Emerge s-le.<,, li and (l]7 .idaic-.s.--In the evecnt, of temergenL~'l-
threatlel-nid, the stipilatic ins- regrdn~ling max~lionu hourlls of emplllOY-
menclt hallnT he temporarily .-Ill-n cC~ pendd duing~ .suCh elinergenev' as to
those employees whose~ work,l is a ffected thereby, b-ut on1 condi~lit ion thlat
of thle mlaximum~ll hours p~rovided~l for thl e Group, in wF-hich -1uch1 em-
p'lcly'e is regu~larlyl? clasdiedft~l in anyl! one week dur~ime suceh emler~gency~
Allr -:I1I -- See Ip. ; I:r.1rah 2 i(4)' of order approving this rotle.
Amon olSeepainrnih 2(5)of order approving this Coude
period. Paylmen for all r-uch work by an emp~lo ee in eic~ess of the
hours.i per' week plroided .in Sc~ction~ 1 above, ~lu~tl he~ at the rate, of
time~ and one-hlalf his~ no~rmln rate of pay-. In azll suchJ cases the ~emn-
bers of the trade affected th~ereby .-hl~l notify the Clode Au~thority
of ithe r~eason fo:r the eistrcei of the c~aem~ergency. The~: member mayz~J
operated under this Section1 upon his ownrl de~;t'lnnina~tionT Of the ex~ist.-
tence of an emelrgenlcy unless and until thae Codel. AuthiorityV den~ies;
the existene of suchl emerge~?;in cy.- The~ dete~l~n:;ination by thlz Code
Authority is .subje~ct to rev-iew.. ~, aprova~.l and d!jispprova\'l of the Ad1-
miinistratorc~ in eachl catse. Dulirie hthe existence of such emergelnevll~ theC
mlemb:er or mlemnberS ofE the Tradt~e den~telt d tin-reby knl ~not~i the
Code AuthorityJ orf the~ ho~r- wTorked byS emplo?-r< duringi~ the per~iod;
of such'1 emergentZ~Cy,, andl ther tenllirninaion thereof.
.6E( TION( 1. REG8/O ,s/-!r/Wt7vel o' Of 'ltifs.--n -andci after the: effctive
daite of this Code, the mlinimumn weekly rates of was.
wag'es are calcullated -upon an hlourly, r.-eell;y, mlonthly. conunis.~,ion
or any other ~nwi,-shall, except as hei~~ireinaft proI.I ed,~'1 be as
(a) W~ithinl cities of ovcer 5l00,000 poplaltio-n. no employee shrall
be paid less than at thle rate of $1_4.00 p~er wecek for a forty (40)
hour work~ w-eek, ocr less than at thae rate rlf $14..30 per n-ell for a
fo~r~ty-four (44) hour workr week, or less thann at the rate of $15.00
perl week for a forty--eighrlt :(48) hour wo~rk weekcl:.
(b~) Within~ cities of from loopon(1)I tc 500000Cl,: popula~l~ ticon, no em1-
p'loyee shall be paid less thann at the rn to of 10l.00l per w-eek for a forty
(~40) hlour wocl~l rk eek. or less th~an at th~e rate of $13..il0 perY1 we(ek for
a forty-four (44 hour work week or less than at the rate of ~14.00
pecr w7eek~a foi aL forty-e~ighr t (44) houlr work week.1;
(c) Wit~ihin cities o~f Jess than~ 100.0:I00 poplallftionr. no emp~,loyeeIl
shllnl be paid less thaln :!t tthe rate of $12.00 p'er wmeek for a for~ty
(40) hour wo~rk week.i or less than at the i:!rt of $19.30 per week~l
for' a forlt?-fourl! (44) hourl1! wCorkZ w~eek or 1r- th~an ait the rateI of
side mlcI1-rtors, except those Femployedl solely onr a commission brl-~is,
.shal be nt les tha 91000 pe not plus traveling exp~enlss.
SECTION 4. No0 office bov. or I!w-ir(!, --ate. 4.1 be paid. less than &8
per cenlt of the mrinima~nl w~nge herein se~t forth for the~ noimma;:llil
w~eekl-t hours CSpecifi-c:! 1 in A.jrtic IliI.andf ap!li.:-abll e to, hba, pr
vided-l, howevert1 that where molrlle thann oneesheei ls-ii
compell~n~ntated as an orfL-~e boy-r or ilws~--enger i,~ not ore thaLn fiveif p~er
filed and com,!pen.--atedel in each~l establishmen1C'lt.
SECTION 5. PartZ-t~ime e~mploy/ees.-Part-time emrploy~ees ha!rll 10.
paid notc less: than at the hourilly ra2te proporll~tiu~lt toL thelrl rat~s p~re-
scrib~ed in t~he fo-iregoing~ sec~tirlns- of this, Aricle,::
SECTION 6j. Hallndi~capped~ persons.--A person whose earning capac-
ity is limited because of age or p>hysica~l or mlentall handicap may be
emnploy~ed on light work at a wrage bielow the mininumn established
by this Code if the employer obtains fr~om the States authority depsiga-
not~ed by the United States D~epartment o-f Labor a certificate au~thor.-
izing his employment at suchn wages andc for such hours as: shall be
stated in the certificate. Each employ~er shall file mlonthly wit.h the
Codle A-~uthorit~y a list of all such personslr employedc byT hiln, showing
the wages paid to, and the lc~tulal hours of w~ork for such emlployee."
SECTION 7. An. employer shall mnake paymllent of all wages due
at least. eve~ryS two weeks and sala ries at least mnon~thly in lawrful cur-
ency or by negotiable demand checks. These wage~S~ andl salaries
shall be exemplt from any charges, fines or dedu~ctionls, or p~aymlents
for pensions, inlsuraince or sichl benefits other than those volunltarily
paid by the wage ear~ner~s or I~reuir~ed' by State law. NPJo emplloy'er
shall withhold Tages. The employer' or his agents shall accept no
rebates direc-tly or indcirectly on such wagnes or salaries.
SECT'ION 8. Female employees doing substantially the samle work
as male employees shall receive the same rate of payr as mnale
SECTION 9. This Article ettablishles a minimum comnpensation
which shall apply, irrespel~tctive of whether an emp~lloyee ii cual
compensated on a time rate, piece-woork, or other basis.7
ARTCLEr V- -CENER:AL L.\BOHr AND OTHER PROIS\IsoNS
SECTI(~N 1. Child Labor.-No person under eightieenl (1) years
of age shall be employed in the! Trade except in clerical, office, sales,
or service departments, and no person under .sixteen (16) years of
age shall be employed in any capacity In any State: an emlployrer
shall be deemelcd to have complied wihthis pr~ovision as to age if
he shall have on file a certifiente or permit duly signed by t~he autihor-
ity in such State emlpow~eredl to issue emplllloyment' or age certificates
or p~ermnits showing that; the emp~lloyee is of thec r~equireFd age.
SECTION f2. (a) Employees shal have the right to organize and
bargain collectivecly through r~epresen.'tative s of their own choosing,a
and shall be free from the interference, restraint, or coe~c~ion of emn-
ployers of labor, or their agents, in the dlesignnation of such r~epre-
se~ntat ives or ini self-organ izationl or in other concer~ted act ivities for
the purpose~0" of collective batrgraining or other' mutual aid or protection.
(b) No empllloyee and no one seeking employment shall b Ie reqirled
as a conlditionl of em~ployment to join any company umion or to re-
framn from joiming, orgamizmg, or a~sssting a labor o~ganizalt.io n of
his own choosing, and
(c) Employerls shall comply .with. the maxsimnum hours of labor,
Inunimumn rates of pay, and others condcit~ions of employment, approved
or presicribedl by the President.
SECTION 3. NO employer shall reekassify employees or duties of
occupa'tionls performed or engage in anyr other sublterfuge so as to
defeat the purposes of provisions of the Act or of this Code.
8 Amended--~ Ico pa rn raphl 2 (6i)
'Section 10 added to Article IV-See paragraph 2 (7) of order approv-ing this Code.
SECTION 4. 1Every employer shall provide for the safety and health
of employees during the hours and at theplcsothiemoy n.
Stand~ardrs for safetyS and health shall bP~ae sumtd b t hnr e Clodmen
Authority to the Administrator within six months after the effective
date of the Cod~e.8
SECTION 5. No provision in this Code shall supersede any State
or Federal law whichn imposes on employers more stringent require-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general working rcondit~ionis, or insurance, or fire
protection, than are imposed by this Code.
SEenowO 6. All employers shall post and keep postedc full copies
of this Code in conspicuous places readily accessible to all employees.
Every member of the trade shall comply with all rules and r~egula-
tions relative to the posting of provisions of Codes of ~Fair Com-
petition which may from time to time be prescribed by the
ARTICLE VI--ADLN ISzsRaxrrow, ORCaxxzanow.) ENs CoxS8TrrTOwN
SEcTION 1. A Code Authority is hereby established for the Sur-
g-ical Disctribu~ting Trade to cooperate wi~th. the Admirnilstra~tor in
th-e administration of this Code, and shall consist of nine (9) per-
sons, seven (7) of whom shall be selected by the American Surric~al
Trade Associat~ion and two (2) by non-members of the Association.
1\fembler~s of the Association and non-members elected to the Code`
Authority shall be elected t~hereto, either prior to and in contempla-
tion of the approval of this Code, or subsequent to its approval, by
a method of selection approved or prescribed by the Admilnistrator.
The Administrator mlay apipoint not more t~ha~n three (3) addi-
tional members, without vote and without expense~ to the trade, to
serve for such. period of time, and to retpr~esjent the Administrator or
such group or groups, as he may designate.
SECTION 2. Each trade or indlustrial association directly or in-
directly participating in the selection or activities of the Code Au-
thor~ity shall (1) impose no inequitable restrictions on membership,
anid (2) sutbnut to the Admlinistrat~o r true copies of its articles of
association, by-laws, regulations, anld any amendmnents when made
thereto, together with such other information as to mem~bersh-ip, or-
ganization, and activities as the A~dministrator may dleeml necessary
to efftectuate the purposes of the Act.
CECTION 3. III order that the Code Atluthority shall at all times be
truly r~epr~esetntatie of the trade, and in other respects comply w~ith
the provisions of the Act, the Administrator may prescribe such
hearings as he may deem~ proper; and thereafter if he shall find that
the C'ode Authority is not truly representative or does not in other
respects comnpl~y with the p~rovisions of the Act, may require appro-
priate modification of the Code Aiuthority.
SEC.TION 4. Nothing conltainedl in this Code shall constitute the
memnbers of the Code Authorit~y partners for any purpose. NIor shall
any mlember of the Code Aluthlority be liable in anly manner toan
one for any act of any other members, officer, agent or employee o
e~mendiedi-See paruagr1aphi 2 (8) of order approving this Code.
the Code Authority. Nor shall anyr member of the Code Authority,
exercising reasonable dliligecnce in the conduct of his duties here-
undcer, be liable to any one for any action or omission to act under
this Code, except for his ownr wilful malfeasance or non-feasance.
SLCcTrox 5. If the Adiministrator shall determine that any action
of the Code Aulthority or any agency thereof may be unfair or unjust
or colllntrar to the public interest, the Administrator may require that
such nation be suspended to afford an opportunity for investigation
of the merits of such action and further considleration by such Code
Authority or agencyg pending final action which shall not be effective
unless the Administrator approves or unless hze shall fail to disap-
prove after thirty (30) days' notice to him of intention to proceed
with such action in its original or modified form.
POWrERIS AND DITTIES
SECTION 6. Subject to such, rules and regulations as may be issued
by the Administ~rator, the Code Aiuthority shall have the following
powers and duties, ini addition to those authorized by other
provisions of this Code:
(a) To inrsure the execution of t~he provisions of this Code, pro-
vide for the compliance of the trade with t~he provisions of the Act,
and to propose and submit to the Administrator modifications and,' or
amendments to this Code which shall become a part hereof upon
approval by the Administrator after such notice and hearing as he
(b) To adopt by-law~s and rules and regulations for its procedure
and administration of the Code.
(c) Through the Secretary of the Code Authority to obtain from
members of the trade such information and reports as are required
for thle administration of the Code, and to provide for subnussion
by members of such .information and reports as the Administrator
maay deem necessary for the purposes recited in Section 3 (a) of the
Act, which information and reports shall be submitted members
to such admninistrative and/or government agencies as the dmin-
istrator may designate; provided that nothing in this Code shall
relieve any member of thle trade of any existing obligations to furnish
reports to any government agency. l such data shall be compiled
by the Secret~ary in. a form which will not reveal thle data of an
individual member of the trade, and in this form ma be made
available to t~he members of the trade as directed by the Code Au-
thor~ity unless otherwise directed by the Admninistrator.B
(d) To use the American Surgical Trade Association and other
agencies as it deemns proper for thre carrying out of any of its activi-
ties provided for herein, p~rovided that nothing herein shall relieve
the Code Authority of its duties oi* responsibilities under this Code
and that such trade associations and agencies shall at all times be
subject, to and comply with the provisions hereof.
(e) To appoint a Trade Practice Commit~tee which shall meet
withn the trade practice committees appointed under such other codes
as may be related to the trade and industry for the purpose of formu-
lating fair trade practices to govern the relationships between pro-
a Amended-See paragraph 2 (9) of order approving this Code.
duction and distribution employers under this Code! and under such
others, to the end that such fair trade practices may be proposed to
the Administrator as amuendmlents to this Code and such other codes.
(f) TIo establish an Industrial Relations .Commlittee for the trade
which shall consist of an equal number of representatives of em-
ploy'ers and employees and ant impartial chairman. The Adminis-
trator shall appoint such impartial2 chairman upon the failure of the
committee to select one by agreement. If no truly representative
labor organization exists, th~e employee members of such board may
be nominated by thze Labor Advisoryr Board of the N. R. A. atnd
appointed by th~e Administrator. The employer representatives
shall be chosen by the Code Authority. Such committee shall deal
with complaints and disputes reclatinga to labor, in accordance with
rules and regulations issued by the Administrator. The Indulstrial
Relations Committee may establish such divisional, regional, and
local industrial adjustment agencies as it may deem desirable, each
of which shall be constituted in like mannler as the IIndustrial Rela-
(g) To recommend to the Administrator fEurther fair trade prac-
tice provisions to govern members of- the trade in their relations with
each other, or with other trades, and to recommend to the Admin1-
istrat~or measures for industrial planning, including stabilization of
(h) To consider all charges of any breaches olf the Code and/or
any schedules or amenndments thereto.
SECTION 7. It being found necessary, in order to support the ad-
ministration of this CSode and to maintain th~e standards of fair comn-
petition established by~ this Code and to effect~uate the policies of the
A8ct, the Code Authority is authorized, subject to the approval of
(a) To incur such, reasonable obligations as are necessary anld
proper for the foregoing; purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which.
shall be held in trust for the purposes of the Code;
(b) TPo submit to the Admimnstrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary,
(1) an itemized budget of its estimated expenses for the foregomng
purposes, and (2)' an equitable basis upon which the funds necessary
to support suh budget shall be contributed by members of the
(c) After such, budget and basis of contribution have been ap-
proved by the Administrator, to determine and secure equitable con-
tribution as above set forth by all members of the industry, and to
th~at end, if necessary, to intitute legal proceedings therefore in its
SECTION 8. Each member of the trade shall pay his or its equitable
contribution to the expenses of the m~aintenane of the Code Au-
thority, determinedc as hereinabove provided, and subject to rules
anid regulations pertainling. thereto issued byr the Admrinistrator.
Only members of the trade complying with the Code and contributing
to th~e expenses of its administration as her~einabove prov-ided, shall
be entitled to participate in the selection of members of the Code
Authority or to receive the benefits of any of its voluntary activities
or to manke use of any emblem or insignia of the National Recovery
SECT'ION 9. The Code Authority shall neither incur nor pay any
obligantion in excess of the amount thereof as estimated in its ap-
proved~ budget, except upon approval of the Administrator; and no
subsequent budlget shall contain any deficiency item for expenditures
in excess of prior budget estimates except those which the Admin-
istrator shall have so approved.
SECTION 10. The Surgical Distributors Trade Code Authority may
incorporate under the laws of any State of the United States or of
the District of Columbia, orr ma~y assume or adopt such existing
corpora3te forma under anyS of such, laws as it mray detem appropriate
for the proper performance, as and from the efciedto t
activities, powers and duties hereunder, such corporation or corporate
form to be not for profit and to be know as the Surgaical Distributors
Trade Code Authority, Incorporated; provided that the powers,
duties, objects anld purposes of thne said corporation shall, to the
satisfaction of the Administrat.or, be limited to the powers, duties,
objects and purposes of' the Surgical Distributors Trade~ Code Au-
thority as provided in this Code; provided, further, that the existence
of the said corporation shall be during the term of thLe Code; and
provided, further, thant the certificate of incorporation and by-laws
shall be subject to the disapproval of thie Adminlistrator.
AnnT LE VTI[I-PRI-CES, TERMS, SALES, ETC.
SECTION 1. All installment sales shall be covered by a written
agreement .retaining title or a lien until full payment is made, and
shipment of goods shall not be made until agreement and notes for
unpaid part of purchase price are signed andl delivered and initial
payment made. A first or down payment of not less than twenty
(20) per cent of the total amount of the sale shall be required on
installment sales. This provision. is understood to prevent the ship-
pmng of merc~handise on approval for a period in. excess of ten (10)
days. Immediately upon approval the initial payment shall be made.
Deferred installments of Installment sales shall .not be more in
number than as follows:
Sales up to $300, not more than1 10 monthly installments.
Sales $300 tio $500O, not more than 12 monthly installments.
Sales $500 to $1,000, not more! than 18 monthly installments.
Sales over $f1,000, not more than 24 monthly installments.
SECTION 2. A cash discount not exceeding five (5) per cent may be
allowedc for cash payment of purchase price of goods with order. A
cash discount, not exceeding two (2) per cent, mayT be allowed for
payment of an account by the 10th of the month following the date
of purchase. Accounts shall be diue and payable at thJe end of the
month following the month in which, the purchase is made.
ARTICLE VIII--THADE PRACTCELS
SCECTION I.,NO member of the trade shall give, permit to be given,
or offer to givre, anything of value for the purpose of "influencing or
rewardling the action of an~y employee, agent or representative of
another in relation to the business of the employer of such employee,
the principal of such agent, or the rep~resented party, writhlout. the
knowledge of such employer, principal or party. Commercial
bribery provisions shall not be construled- 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 hnerein-
(a) For the purposes of this Sectioln, physicians, surgeons, and
other professional men, and women shall be considered agents or
representatives of their patients and/or clients when they offer or
recommend the purchase of products of this trade.
SECTION 2. NO member of the trade shall allow secret rebates, re-
funds,, commissions, credits, or u~nearned discounts, whether in the
form of money or otherwise, or extend to certain purchasers special
services or prices, Inor shall a mxemb~er extend special privileges not
extended to all purchasers of the same class, on like terms and condi-
tions, nor withhold from, or insert in an invoice or contrnet any
statements which. makie the invoice or contract a false record, wholly
or in part, of the transaction covered thereby.
SECTION 3. NE~o mlember of the trade shall use advertising which is
inaccurate in any material particular, nor shall a member directly,
by ambiguity or by inference misrepresent merchandise or any sub-
stance used in. connection. therewccith (including, but not limited to
its use, trade-markr, grade, quality, quantity, size, origin, material con-
tent, preparation or curative or therapeutic effect) or credit terms,
values, policies, or services; and no member of the trade shall use
advertising and/or selling methods which tend to deceive or mislead
thne customer. Advertising includes all representations of fact or
opinion disseminated in any manner or byi any means, including the
labeling of products.
SIECTION 4. No member of the trade shall disseminate, publish, cir-
culate or cause to be disseminated, published or circulated any false
or misleading statement relative to thle following:
(a) A~ny product or price thereof of any member of the trade;
(b) The credit standing or ability of any member of the trade
to _perform any work or manufacture, or to produce any products.
SECTION 5. No member of the trade shall secure or use or cause
to be? se~cured a~ny7 il~nfonRmtioIr~n cc:nc~rnin the business of any other
member of the trade which is properly regarded by him~ as a trade
secret or as confidential within his organization, without first obtain-
ing such member's conlsent. Nothingf in this Section shall be con-
strued to inlclutde in formation relating to a violation of any provision
of this Code.
SECTION 6. NO memlber of the trade shall imitate or simulate any
design, style, brand, trade-markz, slogan, or other means of identifi-
cation owned by any other member of the trade in such a manner as
has the tendlency or capacity to mislead or deceive. purchasers.. In
order to make this provision effective, the Association may provide
for the establishment of an Agency for the registration of surgical
instruments of original and us~eful design.lo
SECTION 7. No member of the trade shall sell the merchandise. of a
manufacturer or wholesaler to another distributor or other purchaser
IO Amended---See paragraph 2 (10) of order approving this Code.
for resale in. a manner to interfere with the regular channels of dis-
tribution, or with approved t~rrae prrat~ices of arny code governing the
manufacturer or wholesaler thereof, except with the knowledge and
consent of such manufacturer or wholesaler?'
SurrToPV 8. No member of the trade shall induce or attempt to
induce by anly means, the breach of an existing contract between a
competitor and his customer or source, of supply; nor shall any such
member interfere with or ob~st~ruct the performance of such con-
tractual duties or services.
SECT"ION 9. No mlember of thle trade shall refuse to sell any of the
products o~f this tradle to another member of the trade or any other
purchaser on. the ground, or for the reason thiat said member of the
trade or such other customer, is not. a member of any trade association.
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with thle
provisions of subsection (b) of Section 10 of the Act, ~from time to
time to cancel or mnodify any order, a~pproval, license, rule or regaula-
tion issued under said A~ct.
SECTIO7N 2. This Code, except as to provisions required by the Act,
may be modified or amended on the basis of experience or changes
in circumstances, such modifications or amendments to be based upon
agpplication to th~e Adminlistrator and such notice and hearings as he
sllspecify, and to become effective on approval of the Adminis-
trator unless ot~herwPise provided and so long as such approval may
be by law required.
N~o provision of this Code shall be so applied as to permit mlonopo-
lies or monopolistic practices, or to elimlinate, oppress, or discriminate
against small enterprises.
ARIrrCLE 11Z--FRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more dti~ficult of consummation if prices of goods and
services increase as rapidly as wages it is recognized that price
increases, except such as may be required to meet individual cost,
should be delayedl, but when made such increases should, so far as
possible, be limited to actual additional increases in the seller's cost.
ARTrce CLEI X II-EFFECTIV'E DATE
TIhis Code shall become effective pn the second Monday after its
approval by the President.
Approved Code NIo. 507.
Registry No. 1628-01.
1 Deleted---See paragraph 2 (11) of order approving thle Code.
II11Ill0 111111 11111111111 1111111111 111lililI 11111111111lil