Code of fair competition for the wood cased lead pencil manufacturing industry as approved on February 17, 1934

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Title:
Code of fair competition for the wood cased lead pencil manufacturing industry as approved on February 17, 1934
Portion of title:
Wood cased lead pencil manufacturing industry
Physical Description:
p. 109-127 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

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Subjects / Keywords:
Pencil industry -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

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Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1647-01."
General Note:
"Approved Code No. 291."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004921586
oclc - 639327928
System ID:
AA00006483:00001

Full Text





NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION



WOOD CASED LEAD PENCIL

~MANUFACTURING

INDUSTRY


I' I
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents


V


Approved Code No. 291


Registry No. 1647--01


AS APPROVED ON FEBRUARY 17, 1934


WE DO OUR PART


MOMENT PRINTING OFFICE
WASHINGTON : 1934























This publication is for sale byl the Superintendent of D~ocuments, Government
Printing Office, Washington, D).C., and by district offices of the Bureau of F'oreign
Foreign and Domzestic Commerce.
DISTRICT OFFICES OF TH1E DEPARTMENT OF COMMTNERCE
Atlanta, Ga.: 504 Post Office Buildinlg.
Birmingham, Ala.: 257 FEederal Building.
Boston, Mass.: 1801 Custombouse.
Buffalo, N.YE.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wiells Street.
Cleveland, Ohio: Chamber of Commerce.
D~allas, Texr.: C'hamber of Comtmere B~uilding.
Detroit, M~ilh. : 801 First1 National Bank: Building.
Houston, Tex.: Chamlber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: chambloler of Commerce Building.
Kansas City, Mo.: 1023Y Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 220 Feder1l1 Building.
Miinneapolis, Minn.: 213 Federal B~uildinlg.
New Orleans, L~a.: Room 225-A, Customnhous~e.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 408 East Plume Street.
Philadelphia, Pa.: 42'2 C'conuer~cial Trust Building.
Pittsburghj, Pa.: Chamber of Commerce Building.
Portlahd, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customh~ouse.
Seattle, Wash.: 809 Federal Office Building.











Approved Code No. 291,


CODE OF FAIRt COMIPETITIION
FOR TH[E

W~COOD CASED LEAD) PENCIL MIANU_`F~AcCTURING
INDUSTRY

As Approved on February 1.7, 1934

ORDER

ArrnovIxo CODE O1F FALIR COM PETITION FOR T1HE WOOD CASED) LEAD)
PENCIL MANUFACTU~RING'C INDUSTRY
An application having been duly made pursuant to an~d in full
compliance with the provisions of Title I of the National Industrial
Recovery Acct, ap~proved June 16, 1933, for approval of a Code of
Fair Competition for the WOCood Cased Lead Pencil Manufacturing
Industry-, and hearings having been duly, held thereon and the
annexed report on said Code, containlinga fin~dinlgs with respect thlere-
htohaing been made and directed to tlhe Pre~sident:
NOhrW, THEREFORE, on behalf of the ]President of the United
State, I, Hugh S. Johnson, -Admlinistrator for Industrial Recovery,
pursuant to authority vested in mze by- Executive Orders of the
President, including Executivec Order No. 6543-A_, dated Decemaber
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code comcplies in all respects
wyith the pertinent prov~isions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fiair Competition be and it is hereby approved, provided that
the continued participation of the trade association participating in
the selection or activities of thle Code A5uthorit~y after thirty dayrs
from. the effective date of this Code shall be contingent upon its con-
stit~ution anld by-laws being amended to the satisfaction of th~e
Adlministrator and, provided further, that the provisions of Section
I[ of A~rticle VII and Sections 8, 9, 10, 11, 19, 13, 14 anld 15 of Article
X are suspended pendling .further study and determination by the
Adclm in istrant or.
IIUGH S. JOHNSON,
Admzinistrantor for Industr~al: Recovery.
Alpproval recomme~nded:
GrEO. L. BERRY,

WASHINIGTION, D.C.,
February 17r, 1934.
41820*---370--103-- 34 (109)












REPORT TO`% THIE PRESIDENT


The PRESTIDENT,
2The White Hlouse.
SmR: A public hearing on thie Code of Fiair Complletition for the
W~ood Cased Lead Pen~cil ]Industry of the United States wvas con-
ducted in W~ashington on the 6th of Novemb3er, 1933, in accord-
ance with the prove-ins111 of the INationn1l Iondstrial Rcovetry? A4ct.
The: Insfiftut' claims to represent"' 97 percent of the Industry.
The ma~ximum. hours established in the Codel~ for the Wood Cased
Lead ]Pencil Mlanufacturing Indus~try3 are' 40 per' weerk except firemllen
and employeesc~ in shipping and cartage service who shall be allow~ed~
a maximum of 46 hours per week~. K~iln tenders, c~leaners and watch-
mnen may be! employed~ in pair~s and shall not work more than 36 and
48 hours on alternate weeks or an av~era~ge of 42 hours per week.
Persn e(I~ mploye' d inl a manal:gerial~ or executive~ capacity alnd supervi-
sory staffs reeiin 35.00 per week or more, traverlingslese n
employees enrgagfedl in emlergency repair work; are exceplted~ as to hours
provided emerrclgenlcy repair c~rew~s receive timle and one third for all
hourrs workedl per weelk in excess of forty-. To provide for peaki
demanlld pe1riods all employees ecscept those stated above who are
e-xceptions to the maximum hou~rs may be employed a total of 46
hours per week av~eraged to forty du1nrin any thirteen week period
a~nd timle and one third shall be paid for all hours worked in excess of
forty per week~Z. Each emloyl~,)ee in the industry is guaraltee~d one
day of rest in everyI seen~l unless splc~ifiednly exce~pted by the Code
Aurthor1ity.
The W~oodt Casedl Leadl Pencil Manulrfactur~iing Industry oper~atedl on
an average,('C a(.cording l cto the Bureau of Census figur~es,; of 50 hours
per wreek in 1929 and 45 hours per w~eeki in 1931.In19thsiu-
try emnployved 4,4'76 indcividuals of whom 3,7i56 w~ere wage eanrner~s.
Wa~ge earner employment dec~linled 24.5 percent fromt 1929 to 1931.
To bring the numblrer of wcage earnerclls back to thre 1929 level of em-.
ploymenrt or to 3,756 wage earners it would be necessary for the
industry to adopt a 34 hour week, assuming that employment since
1931, the latest data available has been fairly conlstaznt. H3owrever,
since 1931 the industry has ree~mployed a number of persons and,
therefore, a 40 hour w\eek~ seems the mos-,t advisable basis to use in
establishing an appr~oximaltion as to the number of additional wnge
earn~er~s who might be be~ntefited through reemlploymen~t. On the
basis of a 40 hour week 504i- wagel earlners~ should benefit through
reempl~loyment.~t
The wages estalbli lled~ by the Code for this indus~try3 are 36 cents
per hour or $14.40 per wTeekl of 40 hours except in the State of Ten-
nessee, where no employee shall be paid less thanz at the rate~ of
30 cents per hour or $12.00 per wneek of forty hours. The industry
agrees to manintainl the policy of not reducing the compensation for
(110)






111


employment which comlpensation was, prior to Julne 16, 1L933, in
excess of the minimnumn wnge establishedi in the code, notwsithstalnd-
ing that the hours of employment may be reduced; and unless since
such date such adljustmnents have been made, all memlber~s of the in-
dustry agree to endeavor to increase the payP of all employees in
excess of the minimumn wage by an equitable adjustment of all pay
schedules. Offce boys and office girls, 18 years of age or less, may
be engaged at not less than 80 percent of the mninimnum rates estab-
lished, the number of such emllployees to be limi~t~ed to 5 p~ercen~rt of
the total office staff but in no case less than one such em~ployee.
The average hourly rate for wange, e:1n rnrs in this industry in
1929, b~ased_ on a 50 hour wveekr, was 42.7 cents, while in 1931, using
a 45 hour week as the basis, the average was 40.2 cents per hour. On
the basis of the 1931 hourly average, the average salary per wage
earner amou~nted to $18.12 per week;. On the same hourly basis for
a 40 hour woeek the average salary would amnount to $16.08 per week.
Withl regard to the mnarketinlg provisions in Article X-of t~he Code
careful consideration has beenr given these provisions by the Re-
search alnd Planning Division anld the Legal Division and in various
conferences held with th~e industry these provisions werle amended,
moifed and changedisi to eliminate undesirable features and in its
preentfom i isfet to be equitable and necessary to this industry.
These provisions will not work to the disadva;ntaget of the consumer.
On the contrary~ it is felt that they would workr to their advantage
inasm~uch as quality would become more of a factor in competition
thlan price.
The Deputy Admninistrator in his final report to me on said Code
having found as herein set forth. and on thle basis of all the
proceedings in this matter;
I find that.:
(a) Said Code is well designed to promote the policies and pur-
poses of Tlitle I of the National Industrial Recovery Act, includ-
ing removal of obstructions to the free flow of interstate~ and foreign
comerce which tend to diminish the amount thereof and will
provide for the general welfare by promoting the organization of
industry for the purpose of cooperative action amonga the trade
groups, by inducing and maintaining united action of labor anld
mlanagemetnt under adequate gover~nmental sanctions and super-
vision, byr ehinunating unfair competitive practices, by promoting
the fullest possible ut~ilizatlion of the precsent productive capacity
of industries, by avoiding undue restriction of production except
as mnay be temporarily required), by increasing the consumption of
industr~ial and agricultural products through increasing purchasing
power, by reducing and relieringa urcnmployment, by impll~\ilrovn
standards of labor, and by otherwise rehabilitating indu~str~y.
(b) Said Industry normally. employs not more~ than 50,000 em-
ploy~ees; anld is not classified by me as a major industry.
(c) The Code as approved compylies in all resp~ects with the per-
tinent p~rovisions of said Title of said Act, inicludiir ng without himi-
tation Subsection (a) of ~Section 3, Subsectionl (a) of Section 7 and
Subsection (b) of Section 10 thereof; and tha~t th~e applicant asso-
ciation is an industrial association truly representa~tive oft th~e afore-
said industry;; and that. said3 association will amecnd their conist~itu-;






112


tion and b~y-laws to the satisfaction of the Administrator so thfa~t no
inqitable restrictions n membership will be imposed therein.
()The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) T'he Code is not designed to and wccill not eliminate or oppress
small enterprises and will not operate to discrimninate against them.
(f) Those engaged in. other steps of the economic process hav
not been deplirivedt of the right to be heard prior to approval of si
Code.
This industry has cooperated in a most satisfactory manner in
the preparation of this Code. From the evidence adduced during
the hearing and from recommendations and reports of the various
~Advisory Boards, it is believed that this Code in its present form
as approved represents an effective, practical, equitable solution for
this Industry and for these reasons this Code h~as been approved.
Respectfullyr,
Hona S. JoENwSON,
Adcmi~nistrator.
FEBRUARYI 17, 1934.













CODE: OF FAIIR COM1IPETITIONf FOR THIE WOO~0D CASED)
LEAD PENCIL MANULJPFAPC'ITURIN G INDUSTRIAL

AnaIcra I-PDURPOSES
To effectuate thne policies of Title I of the National Industrial
Recovery3 At~ct, this code is established as a code of fair competition
for the Wood Cased Lead Pencil Manufa~cturinga Industry, and its
provisions shall be the standard of fair competition for such industry
and binding upon every member thereof.
AuRICis II[--DEFINITIONS
1. The term Wood Cased Lead Pencil Manufacturing Industry "
shall include the production inl continental U~nited States of wood
cased lead pencils, commencing with the assembly of wood slats
and leads and the processing of these materials in combined form~,
resulting in the completed wood cased pencil, either with, or without,
the tip and/or eraser. The term shall also include such related
manufacturing branches or subdivisions of the industry as may, from
time to time, be included under the provisions o~f this code by the
]President of the Unite~d States, after such notice and hearing as he
may prescribe.
2. The term Mlember of the Industry or M/lember includes
each of those engaged in the industry as defined above operating
as an employer.
3. The term Em~ployee as used herein includes any and all
persons engaged in the industry, however compensated, except a
member of the industry.
4. The term Institute shall mean1 the Lead Pencil Institute,
Incorporated.
5. The term Dealer shall include each of those who is regularly
engaged in the wholesacling and/or retailing of wc\ood cased leadl
pencils (except blanks) in the ordinary course of business. This
shall not include the sale of pencils for use as advertising.
6. TPhe term "C Distributor shall include each of those pur~chas-
ing pencils in blank form and re-selling in that form and/or im-
printing or stamnping such blank pencils and re-selling them for
advertising purposes.
7. Thle term Consumner shall mean any purchaser of wood cased
lead pencils who is not; a dealer or distributor as defined above.
Commissaries and other buying agencies operated by corpor~ationls
or groups of corporations for thre procurement of supplies for their
own. use, and boards of education are included~.
8. The, term Sales Agrents "or Agrenlt "' shall include each of
those who or which shall serve the mlember~s of the industry in. th~e
distribution of w~ood cased lead pencils to dealers, in thle samie capac-
ity as the .members' sales depar~tmn~t s. Such parents shall be ap-
(113)






1t14


pointed only in accordance with regulations adopted by thle Code
Authorllity and approvedci by the Adminil;t ra~tor~.
9. The term Prod-ucts shall mean wood usedl cnrlea pen~ Ircils wiith
or without tips or erasers;.
10. T'he ter~nis "Act ") and "'Admninist~ra tor "' as n ed here1 1 ~ in1 mean
.res~pc~tively Title I of the National Industrial Rcov~,\ery\ Act aInd the
A-ldministrator for Industrial Recov,\ery\.
11. Population for the purposes of this Codle shall be determined
by reference to the latest Federral Census.
AnRTICLE III
S~crnowr 1. Man~rintwn~l H~ou4rs.-Nh o employee shall be permitted~ to
work inl excess of 40 hours in any one wee~ck, except as hlerein
otherwise pr~ovidedt.
SECT'ION 2. Excep'lrfonls as to Hiou~rs.-Firemen andt emplloyee~c s in
shlipp-ingr and caltlrtag service, shall be allowedc a. maxrimuml of 46
hours per w~eekl.
SECTION 3. K~iln tenders, c~leanersl and watl~'llchie ma1y. be emlployed-
in pairs, and shall n-ot work more than 36 and 48 houlr in alternate
weeks or an average~ of 42 hours per week.
SECTION 4. The provisions of this Article shall not apply- to persons
employed in a maanagerial or executive capnc~ity,, or supervisory sta~f
who earn $33,.00 per we\ek or more?; traveling salesmnen; or to em-
ployees engaged in emler~gency3 r'epair' work; providled, honever, that
time and one thirdl shall be patid emnergbenlcy repair c~r~ews for all hourls
over 4C0 worked per week.
SE('TION 5. To provide for peak. periods labor other than. as pro-
videdl for in s~c~tions (2), (3) and (4), may be em~ployed a nInximluml
of 46 hours p~er week providled that during any 13 week period the
total number of hours worked shall not exceed 520; andc further
provided that timer and one third shall be, paid for all hours worked
In excess~ of 40 per week.
SECTION 6. Evapl~oymentii by S,'rral'7 Employer~s.--No employee
shall work or be permitted to work, for a total I~lnumber of hours in
excess of the number of hours h~erein prescribed, eithler if he be
employed by one or more employers.
SECTION 7. StandardC WeeE.-Unless specifically ecscepfted by h
Code Aiuthority every employee shall be guanra nteed- one day of res
AnnICLer IV--WAGES

SEnoxIC, 1. Mininwaz~un W~ages.--No employee shrill be paid in any
pay period less than at the rate of 36 cents per hour or $14.40 per
week of 40 hours for males and 321/, cents per hour or $13.00 per
week of 40 hours, for females, except as otherwise herein provided.
SECTON. 2. iM~i%47/fm Wage Rate~s by Locarilt.-In the State of
T1Cennessee no employees shall be paid in anry pay period less thlan, at
the rate of 30 cents per hour or $12.00 per week of 40 hours.
SECTION 3. Additional zoning classifications may be provided b~y
the Code Aluthority subject to thre approval of the Adm~ninistrator.
SEC~TION 4. P3iece-Work: Compenf~r safi'oi.--This article establishes a
minimum rate of paty wNhich is applied irrespective of whether an






115


employees is actually compelnsatedl on a time rate, piece-work per-
formance or other basis, in which case employees shall be paid once
a week.
SECTIO:N 5. W~agew Above'r the M2~ininvoo~.-- It is the policy of the
mlt~lembers of this industry to refrain fr'oml redulc'ing thie c~ompe~r nsatinc, 1
for employment which compejnsatiocn was prior to Ju~ne 16, 1933, in
xcscs~ of the minimum wage hl~lere se~t forth, notwiths~tandii in g1 thati
the hours of work in such employment.~lr may be re~dwl,.d; andi, unless
since such date such adjustments have been made, all mnemblers of
this industry shall endea;~:vor to increasel~t the pay of all emrpl~yeec in
excess of the minimum wage,~ as herein set forth, by anl equ~itablel
adjustment of all pay schedules proportionate to the increase in
Cllcmpensation as cleterminelrd by thke minimum wrage herein prov-~\ide.t~.
SECETON 6. Fe8Wc~le Em pleyi7,!1ws.-Female employees performing
sulbstalndally the .-ilne wor~k as male employeec-. shall receive the samle
rate of pa;y as mlellr employees.
SEC.TION. 7. He~r7r~rl.,icerpp Persons.--A person whose earning ca-
pacity is limited beca uset of age or physical or mental handicap m7ay
be emplloyed-,~ on light work at a wage below the minimum tistabllishedl
by this code if the employer obtains from. the State authority de-ig~-
nated by the United States Department of Labor a certificate author-
izing his unemployment at such wages and for such hours as shall be
stated in. the certificate. Provided that such employees have been in
thne service, of their present employers for a period of not less than 15
years. Each employer shall file with the Code Authority a list of
all suchf p~ersons~ emlployved by hnimx.
SECTlIOs 8. WagTC~eS Below the Mi~inimunm.-Office boys and girls,
eighteen years or younger, may be engaged at not less than eighty
per cent of the minimum rate estab~li hed~ in Sections 1 and 2; of this
artic~le-nlumbll.er to be limited~ to 5 per cent of total office staflF, but
in nro case lessj than one such. employee.
ARTICLE V---GENERAL L;Anon Provisions
SEC'TION 1. Child Lanbor.-N-I~ o person under sixteen years of age
shall be empkli-yed in the industry. No person ~under eighteenl years
of age shall be em~ploy~ed at any opera~tionsl or occupations which are
hazardous in nature or dangero~us to health. The Code Aruthority
shall submit to the Admrinistrator within 60 days after thre approval
of this code a list of sulchI hazardous occupaltions11. In any State an
emlployerI shall be deemedl to have ~ompl-liedl with this pr1ovisionl as to
age if he shall have on file a (ertifiente or p~erm-it; duly signed by the
aulthor~ity in such State empllower~ed~ to issue emphsy~_\ ment. or age'
c~ertifientes or p~ermits showing that the employer, e is of the r~equilredl
agae.
ESEC'TION 9. Poi''S~ioniS from1T the Act.--In com~plianc~e with S~c~t~ion
7(a) of the A~ct, it is provided:
(a) T'hat. tmploy~ees shall halve the! right to orgarnize andl bargaiin
cofllctively through repilc~resentateive of thcir own chloosing, and shall
be free fromn the initeifcr~felren, restraf.ilt., or coerc1'i(.l of empllloyers' off
labor, or their agents, inl the dlesi nation of such. r~epr~eselntatives or inl
self-organizatio n or in other coniertedl activities for the purpose of
collective bargaining or other muituIi aid orI proltctfion.l
41320*-376i-10i3---341--2






116


(b) Thant. no employee and no one seeking employment shall be re-
quired as a c-ondition of employment to join any company union or
to refrai;n fromv joninng, o~rganizing,-or us~isting a labor orga~nizatio n
of his own choosing, and
(c) That cemplloyes- shall comply with the maximum hours of
labor, minimum rates of payr and other conditions of empllloryment
approved or prescribed~ by thEe Presiden~lt..
SECTION 3. necasiC 8882 Cn~ of empiloyees.-Emplol years shall not
:rec~lla-i fy employees or duties of occupations performed or engage in
any other subterfuge to defeat the purposes of thne ~Act or of this
Code.
SECTION 4. Xt G~dard8 Jfo safety and heal~th.-Everyy employer shall
make reasonabh-l~l~ provisions for the safety anld health of his em-
p'loyees at the pi~la.c and during the hours of thecir employment.
Serum~lr 5. /Stacte lates.--No provision in this code shall supersede
any State or Fiederal law which imposes more stringent reqluire-
ments as to age of employees, wageS, hoursI1' of work, or as to safety,
health, sanitary or general working conditions than are imposed by
this tcodet.
SECTION 6. P>osting.--All employers shall post and keep pos~ted
complete copies of the wage and hour and general labor provisions
of this code in conspicuous places nece~ssible? to em3ployees.
SECTIrON ?. nOille work%.-On and after the effective date of this
code all holeit work shall be prohibited.
CEC'TIOIN 8. PIO t11lol,~yee shall be required as a condition of em-
ployment:
(a) To live in a house rented from an employer.
(b) To trade at a store desiigna~ted by an employer.
(c) To accept as payment for wages anything other than cash or
negotiable check, payable on demla nd.
ARTICLE V~I-Ona;;SI.xz~c rw, POWvERS AND DUTIES OF THE CODE
AUTHORITY
O,(;\hOAIZATIONh AND (CONSiI~TITUTI

SECTIONS 1. A_ Code Atutchority is herebyetbihdo opat
withtheAshnni~tratr i theadmni tatin of this code and shall
consist of .sevenI membellrls to be chosen by the industry throulghl a fair
method of selection, approved by the Administrator, and shall serve
for a period of one year from the d~ate of thetir el~c~tion. The ASd-
ministrator, in his discretion, may appoint not more than three addi-
tional mremlbers without vote, and without cocmpecn.sation from, the
industry, to se~rve for such period of time and to represent th~e Ad-
ministrator or such group or groups as he may designate.
SECTION 2. 7&08110188 in the personnel of the Code Aulthority
sel~c~ted( byv the ind-ustry3 shall be filled through appointment by the
Adm~~inristrIator~ upon nomination of the Code Authority.
S;EcTIOrN 3.-Any trade or industrial association directly or indi-
rect~ly participating~ r ini the activities of the Code Authority shall sub-
mit to the Admlinis~trantor true copies of its articles of association,
by-lawvs, regulations, and any amendments when made thereto, to-
gether wriith such other information as to membership, organization,






117


a.ndl activities as the Aidm~inistrator ma deen ]necessary to effect nate
the purposes of the Act.
SECTION 4. N~o inequitable: restrictions on admnissio~n to mnember~ship
in the Lead Pencil Institute or anly other trade a.ssoc~iation or ~r~gan-
izedl group, participating in the activities of the Code Aurthlorit~y
shall be imlposted, and any member~cl of the illdustr~y shall be e~ligib~le
for membership in. any such trade association or organized!i group
upon compliance with the provi io.ns of the by-law- re'~latingy to meml-
b~e~s~hip,~ provided that any pc-r onl- applying for cl.'1 uch membership
shall, in addition to the paymrent. of suchk anlew~ as are imposed upon
alnd paid by all otherI members, ncep'tl.t a reasonab;~l~lle anld equitable
share of the cost of code amnillllsfnt aionl. Such members of the in-
dustry who do not choose to become members of any trade association
or organized group m~ray participate in the activities of the Cod,~e
Author-ity upon the payment of such proportionate part of the cost
of code adic-nlisltrat~ion as the Code Authority, subject to the Adcmin-
istrator's approval, shall prescribe as fair and equitable3.
SECTIONS 5. Nothing contained in this Code shall cons~titulte the
mlembers~ of the Code 1Authority partnersl for any- purpose. Nor shall
any memlber of the Code Authority be liable in any manner to any
one for any7 act of any other member, officer, agent or employee of
the Code Authority.
SECTIIONh 6. Powers an-d duties.-T'he Code Author~ity shall have thle
following further powers and duties, the ex~c~ise of which shall be
reported to the Admillnist ratorll, and shall be subject to hlis right, on1
review, to disapplr~ove anly not~io-n taken by the Code Authority, incon-
sistent with the provisions of this code or of the Act.
(a) To admlnirlster the provisions of this code and the regulations
of the Code Authority which are approveder by the Administrator.
(b) To adopt by-laws and rules and regul~lintions for its pr~ocedur~e
and1( for the adminl ist r~t ion and enforcement of the Codec.
(c) To obtain from memberl~f~ls of the industry, monthly reports
upon'' formsn to be provided by it, ulnder a co~de name to be knownrr
only to the mIlemlber~ and the agency appointed by the Codle Authority,
comllplete and accurate statisitics showing the membercls' productioon,
new orders, unfilled orders, shipment~lts and inventory of finished and
p'ro-cessedc stock of industry prloluc~t;, samples delivered free, and
rIetur~ned goods, net and gross prices rc.eived, upon a classification
of pro~ducts into conunod0(ity' groups as adopted byT the Code Author-
ity. In addition the industry shall1 furnish slc~h other inlform~ation
alnd~ repor~lts as the Admllini;trato1 mna~y dleeml necessaryT for the pur-
poses r~ecitedl in Section 3 (a) of thle Act, which information. shall be
submitted by members to such admin iist~a t ive and/or gov,\er~nmental1
agiencies as the Admlinistra:tor may designated;; provided that nothing
i n th~is Code shall relieve any member of the in~d ustry~ of any existing
obligations to furnish repor~ts to any ~gov~er~nmental agency. N~o indi-
vidual reports shall be dlisclo edl to any other mem~ber of the indlustlry
or any other party ecsept to .uchi gover1nmetntal;plr~p g nies zas c may b
dlirectedl by thle Admninistrantor.
(dl) To use the Lecnd ]Pencil Institulte and such other ag~encies as
it deemns pr~oper~ for the ca~rrying out of anyZ of its activ-itie~s prov~ided
Ssee paragralph 2 of order ap~prov'ingb this Code.






118


for helrein, p~rovidedt that nothing herein shall relieve the Code Au-
thority of its duties or responsibilities u~nder- l this Code and that such
trade associntiorns and agencies shall at all times be subject to and
comply with the provisions hereof.
(e) To make r~ec~oimmenda1t~ionrs to the Aidmninistrator for the co-
ordinzation of the administration of this Codle wiith such other codes,
if any, as may be related to thie industry.
(f) To secure from memllbers of the industry an equitable and pro-
portiojlnate payment of the reasonable~ expenses of mnaintaining the
Code Authority and its activities.
(g) TIo coop~eralte with the Admninistrator inl regulating the use
of anly N.R.A. insignlin solely by those memlbers of the indus~~try who
have a~stentced to, and are comnplying with, thnis Code.
(h) To recoimmiend to the Adminlist~rator further fair trade prac-
tice provisjionls to gov~ern members of the industry in their relations
with each, other or with other tlrades;/industries and to r~ecommlendl
to the Admlinistrator m~easures for industrial planning,~ including
stabilization of employmr~ent.
~ARTICLE VII--TR AE ]PRACrTcICERULES
1. Ai"fter the effective date of the imllpli ficant~ion-st a nrl Idization
schedule provided for in Article VIII, no mnembecr of thze indulstryl)
shall sell or deliver any wood cased lead p~enc~ils at lower prices
than 25 per cent dliscoulnt~ from, list, to anly dealer or distributor who
sells foreign made lead penlcils which, do not c~onfor~m to the standard
specifications contained in such schedule and which were imnported
after the effective date thereof?2
2. No member of the industrS shall represent or stamp any pencil
or mark its box, sleeve, or container with any: degree of lead hardness
which does not c~orr~espondl to the grading commonly applied to that
lead by the pencil manunfacturer; provid~ed, h~oweerc, that this regu-
lation shall not apply to types in which d~egl;radedl pencils are per-
mlittedl by the standard spe~cificatio-ns, in wh~lich a stalndarld marking
is particularly specified.
3. No member of the industry shall use esp~iona~ge in, any mlanlner,
formll, or degree against any other mlembler as to the processes, opera-
tions, method~ts, and other trade secrets of any other mnem~er.
4. No member of the industry shall give, permit to be given, or
directly offer to give, anything of vanlue for the purpose of influene-
ing or rewarding the action of any emnployee, agent or representative
of anolrthler in relation to thne business of the emplll~y-er of such emn-
ployee, the principal of such agent or the r~eprlesentted party, with
or without. the knowledge of such employer, principal or party.
This collll~~~nunerial biberyS provoision shall not be construed to prohibit
free and general distribution of articles commonly used for advrer-
tising~ except so far as such articles are actually used for commecltcl
bribery as herein above defined.
5. The Code A~uthorityr shall submit recommendations for regu-
lations concerning sampling. After the approval thereof by the
Administrator, no wood-cased lead pencils shall be gi~ven. away free
s See paragraph 2 of Order approving this Code.






119


or sold at reduced .prices as an indlucement, to the sale of ot'her pencils
or other commlnoditles except as providled therein.
6. Whenev-er the sale of w~ood-cas~ed lead pencils is (combllined~ by the
mnanulfncturlers with the sale of other commodjcities, pencili; shall n~ot
be givenl awaly free nor sold at redlucedl prices as an inducement to or
r~eward for thle sale of other cocmmolcdities, or vice versa. Nor shall
such special p'ric~es be qulotedl upon-, a colmbinationl offetr as to repro"'-
sent. a variation from th)e normal selling price of either or any' icml-
mlodityv joined in such offe~r.
7. Nio meber of the industry shall buy, trade in, exchange or
receive from any delnler, distribulto-r, or consumer aIny pencils made
byT any competfingr member as an inucementlltll to the sale or liliting~ for
sal~e of his own products ort as a part of the ulndlerstood, l terms of sale
of such product.
8. NLVo mnembler of ~the industry shall di.scriminlute~. in pl~rice between
different purchasers of the sa me! type, except on ne~coulnt of d.1i fferenlce
in quality and quantity.
9. No member of the ind~ustr~y shall give, allow, or pay any seret
discount, reb~ate, refundl, or credit, no mlt~te in whant forml or at
wcPhat time~, as a means of effecting or concealing p~ic~e dliscrlimina-
tions or of extending spec~ia~l preferences or pr>ivileges to particular
customers.
10. Whenever any p~rospect~ive purchaser of w~oodt-csedl lead pen-
cils shall invite competitive bids upon specifications which call for
any recognized qulality or standard of pencil, no memberl norl any~
member's agent., sh~all use an endeavor to sell to such pulrchalser,
pencils of a quality or standard lower than that providled in the
speci fications ars indclica t~ed by the class and type in thle sta nd rd izat ion
schiedule.
11. No member of th indlustry shall accept or fill, any contract or
order f'or w8ood-cased leadl pencils which is not specific as- t~o the
quality and price of pencils to be furnished thereunder, and/or
which continues beyond twetlve months after the date when the order
is placed and/or wFhich does not specify thie quantity which the
manufacturer is obligat~ed t~o furnish and the purchaser is obligated
to accept. "CReqyuirements '" contracts which are definite as to t-ime
but indefjinite~ as to qulnntityy or definite as to quantity b:ut indefinite
as to time, shall not be accepted.
12. ~No member of the industry shall mnake or authorize, perm~rit,
or tolerate iany acton, statement, or representation on the partI of
any- of h is emnployrees wh ich falsely d iscred'it~s or defame,1s a compe~t~i ng
member, his repuitation or credit, or his products.
13. Nro member of the indulstryr shall imitate, simulate, or other-
wvise ent-eavocr to ay~lumpr~iate, to his own a~dvantage, the brand, namre
orI numbe)W~r of? any membelhr's completing pencil or pencils. hlis trade-
mnarks, the design, marking, color, or other dist~inguishingr feature of
his sleeve, band, box, package, or ca~rton. The Code Aulthorit~y shall
establish an app~ropridte, impartial agency with which the above
brands, names or numbers and ether distingauishinga features shall
be registered and shall establish appropriate rulles andl re gulatiols by
which this imp~Iartial agency shall admlinister this pnlaragraph and
arbitrate any disputes 7r~ising there~under.






120


14. No mem~llberl of t'he industry shall knowingly, under any pre-
text whal~te~ver, issue or allowFl to be issued any inrvoice or other docu-
mlent relating to thle sale of wood-ca ed lead pencils and purporting
to state the terms of such sale, which does not accurately and com-
p~letely exhibit the exact terms of such sale as they are understood in
their finality, by the parties thnereto.
15. No membell~rl of the :ind~ustry3 shall imitate, simulate, or copy
any new, diseil.tinctiv, or unique type of pencil which arny member
ma~y produce,, for a period of twa7elve (12) inlendora! mlonths after
such pencil is put on sale. Providedr, however\t1, that this regulation
shall be inecffecl~itiv unless and until the producer of such novelty no-
tifies thle Code A~uthority o~f the inrtrodu~c~tionl of such nov\elty.l Thle
Code Authority shall promptly notify each member of the introduet-
tionn of such novelty, send each member a sample~l thlereof, and call
attention. to this regulation. TIlhe Code Authority shall establish an
appropriate imupaartial agn2'1y' with which said new, ~istinlc-tive or
unique types of pencils shall be regbistte1red a~nd shall establish appro-
priate rules and regulations by which this imparilltial agency shall ad-
mlinister this paragraph1'1 and arblitrante any disputes arising thlere-
under.
16. No member of the industry1'3 shall sell or offer to sell any wood
celsedl lead pencils to any export house except upon condltitions guar-
anteeing that the orderl1 is for bona fide consumptionio in the marnlket.
for which the goods are ordered.
17. Nro product of this industry shall be accepted for r~etur~n by
any membellr of this industry, except such return is due to the fault
of a member by reason of defects in production or packing or errors
in shipment unless such member's approval has been ob~tained in.
advance of suc(h return, and then only in exchange for other mer-
chandise unless credit conditions justify a credit memorandum to
cover. When the return of merchandise by customers for exchange
is approved bly thle mlem~er, if the return is for other reasons than
the fault of the member by reason of defects in production or pack-
in~g or errors in shipment, a reco-nditioning charge of nlot less than
ten (1070) per cent of the original net value of tlhe returlnedl goods
shall be made, and charge~ shall also be made for transportation~
both wayrs.
18. NPo member of the industry shall pay or make any allowance,
directly or indirectly, for space in catalogs, house organsoan
other form of pubhlcty issued by a customer or prospective~ cus-~
tomer; provided, that electros for one-color printing may be fur-
nish~edl free by any member to any: of his or its customlers for the
purpose of representing the member's product in the customer's
caltalog~ or other publicity material.
19. No memiiber of the indcustryr shall furnish pr~inted pages or
insert sheets, wh-letheir in color or in black and white, for customers'
catalogs for ist rib~ution. to their trade. Pages for insertion in the
-n tallo~s of customers' salesmen, printed in bIlac~k and white only,
mnay be furnished without charge.
20. No memberlP1 of thre indtustr~y'shall participate in or make anly
con~ltributio.n, either in money or goods, to any cooperative new\\spap~erl
advertising promzotedl or carr1ied on by his or its customrlnls. -Each






121

member shall conduct his or its advertising ind-ependent of any parl-
tic~ipation -with or by his or its dlist ribultors.
21. No member of the industry shall mrtake any conltrib~ut ionr, (onI-
C'~~cessi, dliscountll, rebtel~c, or considerationl of any na~ture,, for e~recl.tinlg
andl/Or l1811tlillllung or pamntmg an~y oltlioor adve\rt~lising~ device or
sign usedl or to be used by a cu ltourler. Adver\Ctis'ingb material ma~ty
be furnIished free for windcow and indoor display but no nIerchandl:1I~i e!
shall be given free or sold at reducedl pr'ic's or Inanedt~l for display
or advecrtlsing purp-oses~.
22. No member of theiindustry shall furnish any sampllle? d~ispiny
eqcuipmlent exc~ept the standard sample cards, flap-~, or folders. No
mnountedr' sample boar~ds of any kind shall be furni hed~ cusltomelrr s for
display in their sample r~ooms ulnder any pretext whaltever.l
23. No permanentrlt retillable dtispla o~n es for wood-c'asedc lead
pencils shall be fulrnishel d to any c~ustoml~e r for le-cs thanI one ($1.00)
dollar net for each gross of full nalrc~it-y.
24. No priz~es in mneyI1S or goods shall be offeret d or giv'en to trade!
conv~entions,, trade ou~tinlgs, or outing~rs or celebratio~ns of enstomersl;
by members or their officials, r~epre~senltatives or salesmen. This pro-
vision on prizes shall not be construed to prohibit free and general
d~istrib.utior n of ar~tic~les other than pe~ncils C'(II1ommon ly usd for atdverL-
tising unless suchz articles a re actually used as prizes.
2.5 The. use of color in p~rintingr member's or mnemlbe~r's sales agent'lfs
catalogs shanll be restricted to the cov,\er and b~nek pages of such cata-
logs. The inside pages shall be uniform in ink and paper thr~oughout.t
26j. No member anld no member's represents ntative shall maklle anly
exhibition or dlisplayr of his or its products at any trade convention
or meeting of wholesale and/or r~etail dealers. Exhibits or displays
may be made at special conventions or exhibitions, educational or
otherwise, for the pulrpo~ses of cons~umere inlformalltio1.
AnTICan VIII-S-cTc~mas o\
1. The Code Aulthor~ity1 with thre approval of the Administ rator,
shall have power to adoput, a sc~hedule for the simplificationl of the
variety of indullstr'y products and for the stanldard'Cizationl of spreCificaL-
tions for the pr1escr~ib~ed classes and types of industry products aInd
their pacrkaging,~g inlCludlingb the de~signa~tion~ of ty-vpes which may~ be
sold as bla nkls and imprints or for ad ver~tising p~u rposes. Such sch~ed-
ule whleni appr~oved by thle Bur~eau of Sitandarllds of thle Decpartmentn
of Conunlc~~erce and the Adminilst.rnate, shall be distributed; to all
memers of the ind'usitr~y whose addresses are known, with an elffee-
t~ive date fixed by -the Code Authority~. After such effe~ctiv~e dlate, all
member of the idulrst~ry shall conform to the provisions of such
scherdurle.
AR~TIC'LE IX-S8PCussIceNo orF 1\EMIBERS

1. Class A members are those members of the industry each of
whoml has fifteen (15'9T) per ce~nt or nor~e of the total sales volumlle
of the industry.
2. Class B mebers aret those memers each of w~homn has mlor~e
than five (5%0) per cent and les thlan fifteen (1.5';1) per cen~t of the
total sales volum~e ofE the inldusr.






122


3. Class C mnember are those m~ember~s each of whom has less than
five (5f;) per cent of the total sales volume of this industry.
ARTICLE XY~-MARKETNG TERMS
Thle approval of the following marketing terms is condlcitionedl
upon the continued availability of wood cased lead pencils to the
public at the long established customlarly prices, vriz.: one cent eachl,
three for five cenlts;; twcio for five c.nlts; five cents each.; three for tenl
cents and t~en cents each in reasonably relative qualities at these
various prices. TIhe membersl~1 of the industry everal~lly and co~llee-
tively voluntarily invite the Administrator to and agree that he may
examine anly or all of their books;- or records at any rea~:so~lnable time
to det'termllinet whether these marketing terms are be~ing~ adminillte redl
to effectuate the National Industrial Re~(cov\eryS Act. ICf the Adminis-
trator shatll find after reasonable notice and hearing, that these mnar-
kretingr terms are not being so, administered thne members of the in-
dustry shall make -wh1 changes in. sales policies and prlice~s as may be
necessary mn default of which the approval of~ the follow ingr mar-
keting termls may be rescindedl.
1. The members' list prices shall be the pr~icecs at which the mem-
ber shall sell one gross of his or its products to the consumer. These
list prices shall be subject to the dedullctionl of the standard quantity
discounts and credlit term~s.
2. Thne maemlber's list prlices~ shall include free delivery on ship-
me~nts of any quantityv to New York City anld shall include free
delivery throughout the balanllce of the domestic markel~t onlyy whnen
the weight of shipmenrlt, is one hundred (100) pounds or more. ~Any
transportation cha;rge in excess of the minbuumlll freight rate on
such shipmenr~rts shall be paid by the buyl!er, as shall all chaBrgeS for
delivery on shlipmentslfc werighlingc less than one hundred (100) pounds,
exc-ept shipmen~'ts to New York City. ]Freighrlt charges shall not be
prepal'id by members, and wh~len allowable as hnereinbefore provided,
shall be cdedructed by customers upon remittance for mlerchandcise.
3. Each member shall, within tenl days after the effective. date of
this code, file wcith~ thne Code Atuth~ority a gross? pr'i'c list prepared by
him in conformance with, thne requirements in the code and of Article
X, showiinga his current prices and the standard discoulnts and terms
of payment. Subject to the prov\isiolns of paragraph 4, these price
lists shall be effective inunedia~itely upon filing.
4. No member shall sell or quote in his or its price list or othler-
w\i e, any product of the industry3 at a pr~iceP, which less the appli-
cable standar~ld discounts, shall be less than. thne fair mlinlimumll price
thecreocf as ascertained by the Code Atuthorit~y with the approval of
the Admi nrist en~t(,. Nothing in this provision or in any other pro-
vision of this code shall be construed so as to permit the d-eterml-ina1-
tion of minimum prices for any pecncils retailing at the rate of more
than five cents each~. The Code Authority shall reject any price
list which does not conlforml to the provisions of this palnragraph, andcl
so notify the, member filing it. Until it is corrected,: such price list
shall be ineffective and any sales made by su~chl member which do
not conform to an effective price list on file w~ith the Code Aulthority,
shall be decileme an unfair method of collnpettition.






123


5. Revisedl price lists, with or without disc~ountt sheets, may be filed
fr~orn time to time ther~enfter1 with the Code Authority by aIny' mem-
ber, to be~omle effec~tivet subject to the provisions of parlagr~aphl 4,
illnued'iately upon filing. These pr~ice lists shall be avtailable at rea-
sonable hours to parties in intere et. Revied~t price lists shall be
subject to the Samle 'ondlitio~nd as to minimum p~~rices which are pro-
vided above for original price lists.
6. No member shall sell any product of the industry at prices
lowerl or discounts greater, or on mlorec favor~lable terms of payment
than those onl file at the office of th~e Clode Authority as albove pro-
videdl. ProvPided tha~t obs~olete numl-bers, impller~feit. and dl~lamaed
goods may be sold up~on such terms and condllcitionsl as the Code
Authority m~ay spec'ifically allpprove.
7. T'he uniformu standard terms of credit shall be isity~ (60) days
net or tw~o (2%o) per cen"t for cash in ten (10) days, or two (2 ..~)
per cent, ten (10) days.'~ E.O.MI. The spring dating penlctice! on fall
shipments is h!ereby abolished. The terms for fall dating on sp~rmg
shipmentss shall be as follows: Order~s may be taken from dealers
(not consumller~s) inc~ludling1 syndicates and cha~~in stores (for ware-
hlouse sh`lipmlenltsc only), for shipment during April, MIay, June, and
July upon invoices due and payafible Septem~er 1st subject to the
standard tw~o (2%)o per cent, ten (10) days cashl clis(cou~nt. ]Pay-
ments madle after Sep>temlber 10th are past due. Provided, however,
that this advance dtn privilege shall. not be allTowed by any
Class A member on orders for single sh~ipmenr~ts of less than $100.00
net value; or by any Class B mlembler on similar orders for less than
$75.00 net value; nor by anyx Cflass C member on similar orders.i for
less than. $50.00 net -value. Subsequent order1s placed after April 1st
for shipmaent before August 1st mnay be given the antingr priilege
providd the order amllounts .to the milnimuml quanltities as above
stated.
8. The maxrimluml quantity discount which may be allowfed by~ the
mlember to the consumer on standard lines, and s~ec~ial imprints,
not for advertising, shall be~ as follows: 1 to 4 gr1oss, one k~indr or
assorted, no discount; 5 to 9 grloss, one krind or assor~ted~, 10 per cent
off list; 10 to 246 gross, one ktind or assor~ted,. 15 per cent off list;
25 to 49 gross, one kiind or assorted, 20 per cent off list; 50 to 09
gross, one kindly or assorted, 2~5 per cent off list; 100 to 499 gross. one
kind or assortedt, 30 per cent off list; 500 gross and over1, one kind
or assorted, 331,/ per cent off list.,
(a) The quantity ordleredl for one shiipmient shall governl thne
application of the above schedule. Wh~en quotaitioni is mnade onl a
stated minimum qjuantit~y, an ord~er shall not be accepted for a
smaller shipment except at the lower d'iscouint spe~cifiedl folr such
smaller quantity.
9. The minimumn termsi at which the member shall sell pencils
specially imp~rintedl for advertising pur~pose shall be? as follows:
1,000 pencils (or 7 grross), nickel tip, list plus 60 per cent per gro-ss;
1,000 pencils (or 7 grosss, all others, list plus 40 per cent per gross.
These are her~einafter referred to as the base "):
Less than 1,000, base per gross pilus 10 per' cenlt
2:500 pencils, bas less 5 per cent
5,000 pencils, base less 8 per cent






12~4


10,000 pencils, base less 20 per cent
25,000 pencils, base less 25 per cent
50,000 pencils, base less 33Y3 per cent
100,000 pencils or more, base less 40 per cent
10. The member's lowest selling prices to dealers for standard
lines and special imprints, not for advertising, shall bet the effective
list price filed as herein provided, less a maximum trade discount
of 40 per cent off list and subject to the standard credit and cash
discount terms, except in case of Class I, Type I, in which case the
discount shall be 33f/ per cent off list. This standard trade discount
is further subject to thne provisions of paragraph 14 of Article X;
provided, however, that commencing January 1, 1935, ~when a deal-
er's purchases of industry products during the previous calendar
year from a Class A member are less than $200.00 net or from a
1Class B3 member are! less than $150.00 net or from a Class C member
are less than $100.00 net, the member shall sell to the dealer at no
more than the following quantity discounts: 1 to 4 gross, assorted,
20 per cent off list; 5 gross and over, assorted, 25 per cent off list.
Nothing contained in this provision shall operate as a limitation
upon the opening of any newi account with the allowance of normal
discounts if said new accounts are opeIned in. accordance with thne
provisions of paragraph 16 of this article.
11. The Code Aluthority, .with. thne approval of the Administrator,
may establish an additional scale of cumulative discounts based on
the dealler's or distributor's entire annual purchase? of industryT prod-
ucts from all members of the industry combined, the payment of
which by the members shall not constitute a violation. of the mini-
mum. price provisions of Article X. Each member may pay this
additional discount at the rate ascertained by the Code Authority,
upon the amount of his individual sales to the particular dealer or
distributor.
12. Blankr pencils for imprinters of advertising pencils shall not
be sold to the general trade but directly only to recognized distrib-
utors of advertising pencils, whose names shall be filed with the Code
Authority. With reference to the sale of blank pencils for imprint-
mng for advertising purposes, it shall be the duty of the3 Code Author-
ity with the approval of the Administrator, to establish an orderly
system and method of distribution and sale of blank pencils, directed
to the prevention. of unfair competition. in the advertising pencil
business or betwPeen blank pencils and the standard commercial prod-
ucts of the industry.
To all recognized distributors of advertising pencils, the maximrum
discounts on blank. pencils for shipment at one time, shall be as
follows :
1 to 6 gross, no discount
7 to 49 gross, 10 per cent off list
50 to 99 gross, 20 per cent off list
100 to 499 gross, 25 per cent off list
500 to 999 gross, 334S per cent off list
1000 gross and ov-er, 40 per cent off list.
13. T'he Code Authority, with the approval of th~e Administrator,
shall prescribe such rules and regulations as it shall deem proper by






125


which the question as to w\hether any purch-aser or prospec~'-ti~ve pur-
chaser is a sales agent, dealer, distributor, or c~ons~lrtoner shall be
determined and shall arbitrate all such disputed qulestionsl. The
Code Autlhority shall notify each. member of the indusry o suc
rules, regulations, and decisions inz this regard. Anysuc eso
may be referr~edt to thie Aldmrinist rator, upon pet it ion, and his dlecisio~n
sh-all be finalr.
14. Nio members~ l of t~he indulstry shall sell and deliver~l or contract
to sell and deliver, to any dealer, distribu~rtor or agent, any industry
product including imprints, whlich retail at thne rate of 5 cents or
less each, at a greater discount thanl 25 per cenlt. off list unless and
until sulch memberl~~l shall sec~ure from11 such dealler`, dlistributor or
agent, ain agreement substantially in the form previously approved
'by the Code Authority and by the Adminillst raitor, obshgating the
~ealeri, distr~ibutor or agent~--
(a1) that he or it will not without the conlset.l of the Code Auth~or-
ity, sell such product inclurding~ impZrinlts, to any colllnsumer at a prices
which at the time of the sale thereof shall be less than the price
at which the members might then sell such product including im-
printsi, to the consumer:
(b) that the dealer, distr'ibutlOr or agent will not sell such product
inlclulinlg imprints, to anyr other dele~lr, distributor or agent for
resale to conlsumerss excrept upon a like ag~reemenmt between thle celpler
and~/or distributors and/or agents, anld
(c) that the failure of cocmpliancet withl suchl agrrellemnt by the
dealer, distributors or agent, shall operate as a moictonoth
said agreement by which the applicable discount rate shall be! redu~ced~
to 25 per cent off list.
Any dealer, distr~ibuto~r or agent which~ ex~cuntes, delivers and
complies with the pr~ovisionsi of such agreement, shall be quoted or
sold by the mlember at a discoc.unt of 40 per~cent. off list.
The failure by the member to comply with th-e provisionls of this
paragraph shall be a violation of the cod~e.
15. I~n all sales of tradec-ma rkedt or brand~edl products to dealers for
resale, members and dlealer~s may, by cont ract, require punrchasers~ to
resell such products at the m~anulflc~turler's effective pilce~s andt~ dis-
counts and may further I~reuire thalt if such~ products are thereafter
sold by such purc~haser for Iresale, the origi~nal purchaser shall
incorporate a simlarln provisionl in the c~ontr~net with~ ther purllhaser~e
for resale.9
16. Class A mlemlbers shall not o >enl any\ newp n~c.ounlt. withn a dealer
who or which has not bought since -anuary 1, 1931, from thle member
upon less than a mlinimum quantity for shipment at one time of
$100.00 net worth of woodl-cased lead pencils; C3lass B members shall
not open a new account with any such dealer upon less thanr a
m~inimuml order for shipment at one time, of $75.00 net worth't of
wood-cased lead pencils; Class C members shall nlot, open a new
account with anly such dealer upon lebs than a mlinlimumll orders for
shipment at one time, of $f50.00 net worth of w~ood-casedl lead pencils.
17. No member shall ev\adle the miinimiumn price provisions of this
Bee paragraph 2 of Ordecr approving this Code.






126


code by submitting a bid onl fractions of a gross at a price which is
not extended to the exact common fraction of a cent in, event that the
division does not figure out to an e-ven cent.
18. No manufacturer shall ship to any direct factory accounts on
an order for less than $15.00 net worth of pencils, at the maximum
discount off list price. Orders for smaller quantities shall be billed
at tw~enty-five (25%/) percent off list.
19. Except as provided in paragraph 6 of Article X, no member
shall sell any imprints, jobs, seconds, blanks, pencils for premiums,
advertising pencils, or pencils purchased by manufacturers of other
products to be used in connection thierewithn, in t~he domestic market
which includes Hawaii and Puerto Rico, at any lower prices or on
any other terms or conditions than those which are applicable t~o
the standard commercial numbers of th~e equivalent class and type.
20. After the adoption of the standardization schedule in accord-
ance with this code, no pencil types shall be sold to distributors in
blank form or as consumer or advertising imprints which are not
provided for therein. No pencils shall be so imprinted unless the
standard specifications so provide.
21. The prices to dealers for dealer imprints shall not be less
than. the prices for the equivalent types of standard brand pencils
to dealers.
22. No member _shall sell special imprints not for advertising, nor
member's standard brands back stamlped, on orders for single ship-
ments and billing of less than 1,000 gross of Type 1, Class 1, or 100
gross of Type 3, Class 1, or 25 gross of any other type of Class IC,
Class IVT or Class V, or 50 gross of any type in any other class, nor
less than 15 gross of lead degrees 2, Fli, or 3, nor less than 5 gross of
lead degrees 11 and 4.
23. Nothing contained in. Article X shall apply to export trade to
the Philippine Islands or any foreign country or its possessions.
ARTICLE XI[-MoorvTICc\T now

1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provisions
of subsection (b) of Section 10 of the Act, from time to time to cancel
or modify any order, approval, license, rule, or regulation issued
under said Act, and this Code is further subject to right of the
ASdministrator to review and veto any action of the Code Authority
he deems inconsistent with. the ~Act or the Code.
2. This Code, except as to provisions required by the Acct, may
be modified or amended on the basis of exp~er~ience or changes in
circumstances, such modifications or amendments to be based upon
application through the Code Authority to the Administrator and
such notice and hearing as he shall specify, and to become effective
on approval of the President, unless otherwise provided.
ARTICLE XIII--MONOPOLLES, IETO.
1. No provision of this Code shall be so applied as to permit
monopolies or monopolistic practices, or to elimnincate, oppress, or dis-
criminmate against small enterprises.






127

ARTICLE 111-FI: RICE INc~lull.NEs,:c

1. Whereas the policy of the Act to inlcrease: real pur~chlasing power
w~ill be made: ll~e moe ifficullt~ of consummationtin if prices of goodsl.i anld
services inclense as rapidly as wfnges. it is r'cogl~nizedc that price
increases except su~ch as may be requiredl to meet individual coslt
should be delayed, but when madelt, such. il.en~crse shculdl. so far as
possible, be limited to actual additional incro~ln~-es in thep r(elhrl'S r(asts
ARTICL'IE XIV- EFFECTIVE\ E DATE

1. This Code shall become effe~ctivet on the tenrthl day after its
approvaI byT th~e Pres;idenlt.
AppDroved Code No. 291.
Registry No. 16347--01.
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