Code of fair competition for the optical retail trade as approved on June 4, 1934

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Title:
Code of fair competition for the optical retail trade as approved on June 4, 1934
Portion of title:
Optical retail trade
Physical Description:
p. 149-162 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Eyeglasses -- Law and legislation -- United States   ( lcsh )
Eyeglasses, Protective -- Law and legislation -- United States   ( lcsh )
Retail trade -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

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. 1643-09."
General Note:
"Approved Code No. 454."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004921564
oclc - 639313528
System ID:
AA00006487:00001

Full Text

I' I
For sale by the Superintendent of Documente, Washlagton, D.C. P rc I cenots


Approved-Code No. 454


Registry No. 1843--09


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


OPTICAL RETAIL TRADE


AS APPROVED ON JUNE 4, 1934


WE DO OUR PARYI


ill


ETNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1)34























This publication is for sale by the! Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
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Approved Code NYo. 454


CODE OF FAIR COMPETITION
FOR THEZ

OPTICAL RETICAI[L TRADEt

As Approved on June 4, 1934;


ORDER

APPROVING CODE OF FAIR COMPEITO~N FOR TITE OPTICAL RETAIL
TRADE
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Comnpetition for the Optical Retail Trade, and hearings having
been duly held thereon and the annexed report on said Code, con-
taining findings with respect thereto, having been made and directed
to the President.
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
Hrsan S. JoHNSON,
Admninistrato~r for haEdutrial Recovery.
Approval recommended :
G;EO. L. BERRY,
Division Administrator.
WASHINGTON, D.C.,
June 4, 1934.


05034" 657--21 84


(44g)










REPORT TO T`HE PRESIDENT
The PRESIDENT,
The Wh-ite Hiouse.
SIR: A Public Hearing on the Code of Fair Com~petition for thle
Optical Retail Trade, submitted by a Code Commit~tee, consisting of
representatives of The Better Vision Institute, 30 Rock~efeller Plaza,
New York, N. Y., The Guild of Prescription Opticians of Amnerica,
Inc., New York, N. Y., and the American Optometric Association,
Inc., Brooklyn, NewT 'York, representino- approximately 81 percent
of the volume of business of said Trafe, was conducted in WTash-
ington on December 7, 1938, in accordance with the prov-isions of
the National Industrial Recovery Act.
The maximum hours~ permitted under this Code are forty (40)
in any one week. Provision is made for 96 hours extra work in any
52 week: period, provided, that any emrployee working these extra
hours is granted leave of absence with pay for a period equal to
thle overtime worked or is paid time and one-thirdl for all hours
in excess of 40 in any one week.
The minimum wage provided in this Code in $15j.00 per week,
except office girls in cities of less than 50,000 population and mess-
sengers,, who are to be paid not less than $12.00 per week. Provi-
sion is made for an equitable adjustment of wages above the
minimum.
The Optical Retail TraLde is engaged in the selling at retail of
ophthalmic products anld in renderingf services in connection with
ophthalmnic products. This trade embraces app roi m a tely 1,250
estab~llishments, located in every city and hamllet through h
country~. There are two classes in this Trade: first., the Opt~ome-
tritsabot 1,00, wo bth xamne yesand sell ophthalmic
products; seond~, te ptcin, who bt x2nefill prescriptions and sell
opihthnl~mic products.
The aggregaite capital investment for 19:33 was approximately
85 million dollars, or about $;5,800 per establishments.. Sales in this
trade for 1929 were approximately 185 million dollars. In 1933,
sales had dropped to about 135 million dollars.
Employment has remained fairly constant over the last four years.
In 1933, there were approximately1,300 employees, as compIa red
with 14,500 in 1929. There are forgeneral classifications of em-
ployees: shop crew, fitters of glasses, clerks and offce girls (or re-
ceptionists). Approximately 40 percent of the total employees are
office girls, who under the definition in the Code, can perform no
other duties than receiving patrons, making app)ointme"ts and
answering the telephone.
This trade adopted the proposed wage in this Code in August,
1933, which resulted in a considerable increase to office rlan
messengaers, who prior to that time had been paid less than the: mini-
mum rate. The other emlployees receivedl the same weeklyl salaries
for thze shorter work week.
Prior to the President's Reemp~loyment .Agreement the average
weekly hours were 50. In August, 1933, this trade adopted a 44
(1501






151


hour week which resulted in anr increase of about 7 percent in em-
ployment or 840 employees.
Employment in this trade will increase about ten percent of 1,350
employees as a result of the proposed Code. The additional wage
burden to the industry will amount to approximately $8M~,000.
The trade practices of the proposed Code will aid the trade greatly
and will also protect the consumer.
.FINDINGS
The Deputy A~dministrator in. his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ingos in this matter;
J findl that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to thle free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
byS inducing and maintaining united action of labor and mannagement
under adequate governmental sanctions and supervision, by elimin-
natingg unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid~-
ing undue restriction of production (except as may be temporarily
requred, b increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by ortherwise rehabilitat~ing industry.
(b) Said Trade normally employs not more than t',!000 em-
ployees; andl is not classified by me as a major industry.
(c) The Code as approved complies in all respects wit.h the pertd-
nent provisions of said Title of said Alct, including without limita-
tion Subsection (a) of Section 3, ~Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant asso-
ciations are trade associations truly representative of t~he aforesaid
Trade; and that said associations impose no inequitable restrictions
on admission t~o membership therein.
(d) The Code is not dlesigned to and will not permit monopolies
or monopohistic 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 engagedl in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
Code.
This Trade has cooperated in a most satisfactory manner with the
Administrator in the preparation of this Code. From evidence
adduced during this hearing and from recommendations and reports
of the various Advisory Boards, it is believed that this Code as now
proposed and revisedl represents an effective, practical, equitable
solution for this trade and for these reasons this Code has been
approved.
Respectfully, Hoon S. JoHNson,
JUNE 4, 1934. A administrator.












CODE OF` AIR'PL CO1MPETIT'[ION FOR TH~E OPTICAL
RETAIL; TRADE

~AnaCra I--PURPOSE
To effect the policies of T"itle? I of the National Industrial Recov-
eryT ALct, this Code is submitted as a Code of' Fair Competition for
the Optical Retail Trade, and, u pon fpprroval, tadeits provisionsan shall bs l
be the standards of fair competition orsuch taeadsalb
binding upon every member thereof.
ARTTICE I1-EFINITIONrS
1. The term Opt~ical Re~tail T'rade as used herein includes the
retail distribution in individual units or small quantities to thle ulti-
m~ate consumer of eyeglasses, spectacles, oxrfords-, lorgnettes, and all
other ophthalmic frames, mountings and accessories, all ophthalmic
lenses, eyeglasses and spectacle cases, parts, sunglasses when fitted
with ophthalmic lenses, industrial goggles and eyle protectors when
fitted with ophthalmic lenses, and fitting, repairing, adjusting and
otherwise serviicing of eye-wear and ophthalmic products of all kinds,
anrd the servicing of prescriptions to the ultimate consumer, with
respect to the foregoing products, a~nd such related branches or stib-
dlivisions as may from time to timne be included under the provisions
of this Code. For the purpose of effectuating this Code the fore-
going definition, shall embrace and include every and all persons
engaged- in the retail distribution to the ultimate consumer of the
for~egomng products or the servicing thereof.
2. The term "C member of the tradee as used herein includes, but
without limitation, any individual, partnership, association, corpo-
ration or other form of enIterprise engaged in the trade, either as an
employer or on his, or its own behalf.
3. The term employees as used herein ~includes any and all per-
sons engaged inl the trade, however c~ompensalted, except a member of
the trade.
4. Th']e term "L employer '" as used herein includes anyone by wvhom
such employee is compensated or employed.
5. Thle term office girl as used herein shall maean anyone re-
ceiving patrons, making appointments, answeringi the telephone and
performing no other duties whatsoever.
6. The t~ermls Presidlent ", "A~ct and "' Administrator as used
herein mean respectively the President of the U~nited States, Title
I1 of the Nat~ional Industrial RecLovery Act, and the Administrator
for Ind~ulstrial Recovery.
7. Ppulaionfor he urposres of this Code shall be determined
by reference, to the latestFeraCnu.
(152)






153


~AnnOLE III--ROURS
1. Mad~mumt hozore.-No employee shall be permitted to work in
excess of forty (40) hours in any one week or nine (9) hours in
any twenty-four (24) hour period, except as herein other ise
provided.
(a) Employees in this trade miay be permitted to work tw~elve
(12) additional hours during any eight (8) weeks in any fift.yr-two
(52) week period, provided that such employees do not work in
excess of ten (10) hours in any twrenty-four (241) hour period.
(1) Each employee, compensated on a weekly basis, shall be
granted leave of absence with pay for a period equal t~o the overtime
worked as permitted and limited in Section (a) of this Art.icle,
Such leave of absence shall be. granted in daily or weekly periods,
to be agreed upon between emnployer and employee, within thie
calendar year in which the overtime occurs, provided, however, thati
the following holidays, namely, New Y'ears Day, M~emorial Day,
Fourth of July, Labor Day, Thanksgiving and Christmas, shall noti
be considered as leave of absence under the above rule.
(2) If any employee voluntarily or involuntarily leaves thle em,
ploy of any employer before said employee has been allowed leard'
of absence sufficient to compensate said employee for the overtime
wor~k! said employee shall be paid for such overtime based upon his
regular weekly compensation.
(3) Any employee, who is employed or paid on an hourly basis,
shall be paid at least one and one-third times his normal rate of
pay for all time worked in excess of forty (40) hours in any one
week or nine (9) hours in any tw~enty-four (24) hour period, as
established in Section 1 of this Article.
(b) No emnployee shall be permitted to work more than six (6)
days in any seven (7) day period.
2. Exceptions as to hours.--The provisions of thlis Art~icle shall
not apply to executives, managers or fitters of glasses, who are paid
thirty-five dollars ($35.00) per week or more, or registered or
licensed professional persons, vis, physicians or optometrists. when
said persons are engaged as such in their profession.
3. Employment by Seveal Empldoyers.--No employer shall know-
ingly permit any employee to worked for any time, which, when added
to the time spent at work for another employer or employers in this
Trade, exceeds the maximum permitted herein.
4. Hours Wlorked Pe~r Da~y--Rest Periods.--The hours worked by
any employee during each day shall be consecutive, provided that
an interval not longer than one hour may be allowed for each regular
meal period, and such interval shall not count as a part of the em-
ployree's working time. Any rest period which maS be given em-
ployees shall not be deducted from such employees working time.
ARTICLE IV-W~AGES
1. Minr~minw It'ages.--No employee shall be paid in any pay pe-
riod less than at the rate of fifteen dollars ($15.00) per week, except
office girls in cities of 50,000 population or less, as de~ned in Section
5 of Article II, and messengers, who shall be paid not less than
twelve dollars ($12.00) per week.






154


2. Pcrlea orkh Co'mp~ensttionz.- This article establishes minimum.
rates of pay which shall apply, irrespective of whether an emp~loyee
is actually com~pensalted- on time rate, piecework; or other basis.
3. Part-time Emplioyees----Minimum Wages.--Part-t~ime employees
shall be paid not less than at an hourly rate proportionate to the;
rate prescribed in the foregoing sections of this article.
4. Wages Above Min;~~/imum- No hourly, daily or full time weekly
compensation for employees wCho are paid less than fifty dollars
($50.00) per wcPeek shall be less than. such compensation ex~istincta
of June 16, 1933; and no employee shall be paid a wage rate wac
will yTield a less wage for th~e shorter full-time week herein estab-
lished than he could have earned for the same class of work for
the longer full-time week: existing as of June 16, 1933. Wage in-
creases established und~er the President's Reemnployment Agreement
shall at least be maintained.
5. Female E1~mp~loyees.-FIiemale employees performing substa~n-
tiallyT the same work as male employees shall be paid the same rate
of pay as male employees, and where they displace male employees
they shall be paid at least the same rate of pay as the male emlployees
they displace.
6. Handicapped Persons.--A person whose earning capacity is
lim~itedl cause of age or physical or mental handicap :may be em-
ploy~ed on light work at a wage below the minimum estab~lishedl by
this Code if the employer obtains fromr thre Stante authority desig-
nated by the Unitedc States Department of Labor a, certificate au-
thorizing hnis employment at such wages and for such hours as shall
be stated in the certificate. Eachn employer shall ~file monthly with
the Code Authnority a list of all such persons emlployed by him,
showing the wages paid to, and the maximum hours of workI for
such employee.
7. Payment of W~ages.--All employers shall make payment of a~ll
wages due at least e-very two (2) weeks and salaries at least monthly
in la~wful currency or by negotiable demand check. These. wages and
salaries shall be exiemplt from, an-y charges, fines or dleduicrtons or
payments for pensions, insurance or sick benefits other than those
voluntarily paid- by the wage earner or required by St~ate law. NPo
emnployer shall withhold wages. The employer or his agents' shall
accept no rebates directly or indirectly on such. wages or salaries.
8. Replacemenct at Lesser Wage.-No employee shall be~ discharged
and reemployed at a lesser weekly compensation for the same class
of work than he was pr,1enously paid; no employee discharged since
June 16, 19:33, shall be reemploy~ed at a lesser weekly compensation
for the same class of work than he was previou6ly paid.
ARTCLE V- -ENERAL, Lanon PRovisions
1.~Zr Chil Labr.-No person under eighteen (18) years of age
shall be employed at operations or occupations which are hazardlous
in nature or dangerous to health. No 13erson under sixteen (16:)
year~s of Agre shall be employll~ed in thle trade in any capacity. In any
State an employer shall b~e deemed to have compliedl with ti
proisio~n as to age if he shall havec on file a -certificate or permit
duly signed by the Aiuthojrity in such State emp~oweredl to issue





155


employment or age certificates or permits showing that the emnployeej
is of the required age.
2. Prlovisionzs From the Atct. (a;) Employees shall have the right
to oria~nize and bargain collectively through representativese of their
own choosing, and shall be fre~e from thre interference, restraint. or
coercion of employers of Inbor, or their agents, in the designation
of such representatives or in self-organization or in other concerted
activities for the pulrnpose of collective ba-)rgaining or other mutual
and or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to Join anyI company union or to
reframn from joining, organizing or assisting a labor organization
of his own choosing, and
(c) Employers shall comply with the maimsiium hours~ of labor,
minimum rates of pay andl other conditions of employment approved
or prescribed by the President.
3. Reclassification2 of Emilploye~s.-No empnlloer shall reclassi~fy
employees or' duties of occupations performed or engage mn anyT other
subterfuge so as to defealt. the purposes olf the Act or. of this Code.
4. Standar~ds for Safet'~y and~ H~ealth.--Everyr emnployer shalll pro-
vide for thle safety and health of employees during the hours and
at the places of their employment. Standards for safety and health
shall be submitted by the Code Au~lthority to the Administrattoor
within six (6) months after the effective date of this Clode.
5. State Lawls.--No provision in thlis Code shall sup~ersede any
StateR or Federal law which imposes on emlployers mo~re stringent
requirements as to age of employees, wages, hours of work1, or as to
safety,_ health,_ sanitalry or greneral working conditions, Or' insurance
or fire protection, than are imposed by thlis Cod~e.
6. Postinlg.--All employers shall post and keep posted copies of
the wage, hour and general Inbor provisions of this code in con-
spicuous places readlily accessible to employees. Every member of
the Trade shall comply with all rules and regulations relative to
the posting of provisions of Ciodes of Fair Competition which Ipay
from time to time be prescribed b~y the Administrator.
7. Dism~issal.-- No emplloyee shall be d~ismissedl by reason of maklincr
a complaint or giving evidence with respect to an alleged violation
of this Code.
8. Established Prauctices.--No employers shall eliminate or restrict
established practices or privileges heretofore granted employees.
9. Reduction.--If any employer in this Trade shall reduce his total
number of employees, or shall reduce the total weekly wage of any
employee, or shall pay a lesser weekly wage to any emiployvee than was
previously paid to a former employee, performing substantially the
same or similar service, or shall have done any of these things since
June 16, 1933, then, in any one or more of these events, such facts,
with all the surroundings circumstances, shall be reported to the
Code Authority and to the Administrator.
10. Comzpensation for Timne ~Spent at Place of Duty.--No employee
shall be paid at less than his normal rate of pay for all time required
to be spent at the place of employment or in connection with the dis-
charge of duties of such employment.





156


AnRTorm VI--OnOBNIz.Snow, POWERS AND DTI~ES OF THE CODE
Avrnour
1. O rgan~izatio n and Constit ution..---A Code A authority is hereby
established consisting of fourteen (14) persons to be selected in the
following manner:
(a) The fourteen (14) persons shall be chosen by the Trade
through a fair method of selections approved by the Administrator,
fourl (4) of whom shall be members of th~e Guild of Prescription
.Opticians of America, Inc.; four (4) shall be members of the A~meri-
can OpItometric Asociation; four (4) shall be members of the Better
Vision Institute, two (2) of whom shall be Retail members of the
Institute and Opticians, and two (2) of whom shall be Retail mem-
bers of the Institute and Optometrists; and two (2L) of whom shall
-be selected from members of the Trade, who are not members of
any Association, one (1) of whom shall be an optometrist and one
(1) an optician.
(b) Any vacancy occurring in the memership of the Code Au-
Ithority shall be filled by members of the Trade, through the same
mcethnod of selection approved by the Administ~rator for the initial
election, and the rep~resentative character required by subsection
(a) of this section shall at all times boe .maintaine~d.
2. In addition to membership as above provided, there may be
~three (3) members, without vote, to be known as Administration
members, to be appointed by the Administrator to serve for such
terms as he may specify.
3. Each professional, trade or industrial association directly or
indirectly participating in the selection or activities of the Code
Authnorityr shall (1) impose no equitable restriction on membner-
ship and (2) shall submit to the Administrator true copies of its
articles of association, by-laws, regulations and any amendments
when made thereto, together wTlithi such other information as to
membership>, organization and activities as the Administrator may
deepx necessary to effectuate the purposes of the Act.
4. In order that the Code Authority shall at all times be truly
representative of the trade and inl other respects comply with the
provisions of the Act, the Administrator may prescribe such hear-
ings as he mayg deem proper; and thereafter, if he shall find that the
Code Authority is not trulyr representative or does not in other
respects comply wpith the provisions of the Act, may require an
appropriate modification of the. Code Authorityr.
5. Any person engaged in the trade shall be eligible for mlember-
slhip in ainy professional or trade association or organized group
upon compliance wFith the provisions of the by-laws relating to
membership, provided that any person applying for such memnber-
ship shall, in addition to the payment of such dues as are imposed
a~nd paid by all other mlemnbers, accept a reasonable and equitable
share of the cost of Code administration.
6i. Nothing contained in this Code shall constituted the members
of the C`ode Authoriy partners for any purpose. N\or shall any
member of the Code Authority be liable in any manner to anyone
for any act of any other member, officer, agent, or employee of the
Code Authority. Nor shall any member of the Code Aut~hority,





157


exercising reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to act under
this Code, except for his own individual wpillful malfeasance or
non-feasance.
7. If the Administrator shall at any time determine that any
action of a Code Authority or any agency thereof may be unfair
or unjust or contrary to the public interest, the Administrator may
require that such action be suspended to afford an opportunity for
investigation of the merits of suchi action and further considera-
tion by such Code Authority or agency spending Sinal action which
shall not be effective unless the Administrator approves or unless
he shall fail to disapprove after thirty (30) days' notice to him of
intention to proceed with such action~in its original or modified
form.
8. Powaers andcl Dulties.--Subject to suchl rules and regulations as
may be issued by the Administrator, the Code Authority shall have
the following further powers and duties, in addition to those au-
thorized by other provisions of this Code.
(a) To insure the execution of the provisions of this Code and to
provide for the compliance of the Trade with the provisions of the
Act.
(b) To adopt by-laws, rules and regulations for its procedure.
(c) To obtain from members of the trade such information and
reports as are required for the administration of the Code. In
addition to information required to be submitted to thle Code A~u-
thority, members of the trade subject to this Code shall furnish suich
statistical information as the Administrator miay deem necesisary
for the purposes recited in Section 3 (a) of the Act to such Federal
and State agencies as he may designate; provided that nothing in
this Code shall relieve any member of the trande of any\ existing
obligations to furnish reports to any Government agency. No~ indi-
vidual reports shall be disclosed to any other member of the Trade
or any other party except to such Governmental agencies as may
be directed by the Administrator.
(d) To use such trade associations and agencies as it deems proper
for the carrying out of any of its activities provided for herein,
provided that nothing herein shall relieve the Code Authority of its
duties or responsibilities under this Code and that such trade asso-
ciations and agencies shall at aill times be subject to and comply
with the provisions hereof.
(e) To make recommendations to the Administrator for the co-
ordination of the administration of this Code with such other codes,
if any, as may be related to the trade.
(f) 1. It being found necessary, in order to support the adminis-
tration of this Code and to maintain the standards of fair compe-
tition, established hereunder and to effectuate the policy of t~he Act,
the Code Authority is authorized:
(.a) To incur such reasonable obligations as are necessary and
proper for the foregaoing 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) To submit to the Administrator for his approval, subject
to such notice and opportunity to be heard as he may deem





158


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 such budget shall be contributed
by members of the Trade.
(c) After such budget alnd basis of contribution have been
approved by the Administrator, to determine and obtain equita-
ble contribution as above set forth by all members of the Trade,
and to that end, if necessaryr, to institute legal proceedings
therefore in, its own name.
2. Each memrber of' the Trade shall be liable for his or its eqcui-
table contribution to the expenses of thre maintenance of the Code
Authority, dletermnined as hereinabove providedl, and subject to rules
and regulations pertainling thereto, issued by the Administrator.
Failure on the part of a member of the Trade to make such contribu-
tion shall be a violation of this Code. Only members of the trade
complylingr with the Code and contributing to the expenses of its
administrations, as hereinlabove provided, shall be entitled to par~tici-
pate in the selection of members of the Code Authority, or to receive
t-he benefits of its voluntary activities or to make use of any emblem
or insignia of the National Recovery Administration.
3. The Code Authority shall neither incur nor pay any obligation
in excess of the amount thereof as estimated in its approved budget,
except upon approval of the Administrator first obtained; and no
subsequent budget shall contain any deficiency item for expenditures
in excess of prior budget estimates except those which the Adminis-
trator shall have so approved.
4. Failure on the part of any member ofE the trade to contribute
his or its equitable contribution to the exrpenses of maintaining the
Code Authority, determined as hereinabove provided, shall be a
violation of this Code, subjects however, to rules and regulations
issued bythe Administrator which pertain hereto.
(g) Tob cooperate wpith the Admmiistrator in regulating the use
of any N.R.A. insignia solely by those persons engaged in the trade
who have consented to and are com~plying with this Code.
(h) To recommend to the Administrator any action or measure
deemed advisable, including furtherr fair trade practice provisions
to govern members of the trade in their relations with each other
or with, other trades or industries; measures for industrial planning,
and stabilization of employment; and including .modifications of this
Code! which, shall become eflFective as part hereof upon approval by
the Administrator after such notice and hearing as he may specify.
(i) To appoint a Trade Practice Committee whRich shall meet, with
the Trade Practice Committees appointed under such other codes as
may be related to the trade for the purpose of formulating fair tradle
practices to govern the relationships between employers under this
code and under such, other codes to the end that, such fair trade prac-
tices may be proposed to the Aidmlinistrator as amendments to this
code and, suchl other codes.
(j) To provide appropriate facilities for arbitration, other than
in labor disputes, and subject~ to the approval of the Administrat~or,
to prescribe rules of procedure and rules to effect compliance with
a wards and determination.





1.59


ARrICLE V-IT--SALES BELOW7C COST
1. The standards of fair competition for the Trade with reference
ato ricing rctcs re ec re tob as ol w :
a) Thpa;in;'_loe d Prina otosPl~C~iples.--
i)Destructive price cutting is an unfair method. of competition
anis forbidden at all times, irrespective of thie existence of an
emergency.
(ii) When no declared emergency exists as to any given. product,
there is to be no fixed minimum basis for prices but it is intended
that sound cost estimating methods should be: used;
(iii) WThen an emergency exists as to any given product sale
below the lowest reasonable cost of such product, in violation of
subsection (c), is forbidden.
(b) Normal Provisionr (Co0st Estimatfing Melthtod).--The Code
Authority shall cause to be formulated methods of accounting and
cost findingr alnd/or est~imat~in capable of use by al members of the
Trade and shall submit such methods to the Administ~rator for his
approval. Full details and instructions concerning such methods
shall be made available to all members of the Trade and to the
Administrator and thereafter it is intended that all members should
utilize the principles of such methods.
(c) Emergency Provisio~ns (Loto~est Reasoana~ble Cost) .-W~hen on
emergency exists, the Code Authority may cause an impartial agency
to investigate costs and to determine the lowest reasonable cost of
the product affected by the emergency. Such determination shall ex-
clude all cost elements set forth in and shall be in all respects sub-
ject to such rules and regulations as miay be issued by the Adminis-
trator and subject to his approval or modification, after such notice
and opportunity to be heard as he may ~prescribe. The Code Au-
thority or the Admlinistrator may, from time to time, cause such de-
termination to be reviewed or reconsidered and appropriate itetion
taken.
(d) Defin~itionrs.--
An Emergency exists whenever the Administrator determines
that destructive price cutting is rendering ineffective or seriously
endangering the maintenance of the provisions of this Code.
Destructive price cutting".
(i) When no emergency exists, the term shall have the meaning
declared in rules and regulations promulgated by the Adminis-
trator on recommendation of the C~ode Authority or on his own
motion.
(ii) When an emergency exists, the term shall mean any sale in
violation of subsection (c) hereof ;
(iii) It shall be an absolute defense to any charge of destructive
price cutting, if any impartial agency, designated or approved by the
Administrator shall find,
(aa) That the price complained of is justified by existing competi-
tion, evidence of which has been reported to th~e Code Authorit~y.
(bb) That the price complained of is justified as a mecthod of dis-
posal of dropped lines or seconds, or
(cc) When no declared emergency exists, that the member charged
with dest~ructive price cu~t~ting has in good faith endeavored to make
proper use of the announced cost estimating mlethods.






160


ARTICLE VIII -TRaDE PracTIICE RULES
1. MIISLEADING ANDC BAITI' ADYERTISING

(a) No member of the Trade shall use advertising, whether
printed, radio, dlispnlay, or of atny other na~tunre~ which is misleading
or inaccurate in any material particular, nor shall any such person
in any way mlisrepresentt~~~ anyak god rsrvies (icluing, buatty with-
out limitation, its use,trd mrkgrdqltyquniysze
origin, substance, character, nature, finish, mnater~inI, content or p~repa-
ration) or credit terms, vanlues, policies, services, or t.he nature or
formn of thte business conducted.
(1) N~o member of the Trade shall advertise the free examination
of eyes ", "L free consu~ltation ", consultation without obligation ",
i" free advice ", or any words or phrases of similar import which
con~veyT the imp~leression to the public that eyes are examined free or
of a chnIarneer tending to deceive or miislead the public, or in the
nature of "L Bait advertising.
(2) No member of th~e Trade shall use an advertisement of a
frame or mounting which is not truthful in describing the frame or
mounting and all its componenrt parts. No membnler of the Trade
shall advertise a frame or mounting at a price, unless it shall be de-
picted inl the advertisement without lenses inserted, and, in addition,
advertisement must contain a statement immed iatel y following,
or adjacent to~the advert~ised price, that the price is for frame or
mounting only, and does not include lenses, eye examination and pro-
fessional services, which statement shall ap~pear in type as large as
that used for the price. NIo member of the Trade shall advertise
lenses or complete glasses, viz; frame or mounting with laenses in-
cluded, at a price either alone or inr conjunction with professional
services.
(3) No member of the Trade shall use advertising, whether
printed, radio, dlispla~y or of any other nlatuxre, which inaccurately
lay~s claim to a policy or continuing practice of generally under-
selling competitors.
(4) Nlro member of the Trade shall use advertising, whether printed,
radio, display or of any other nature, which refers inaccurately
in any material particular to any competitors or their goods, prices,
values, credit terms, policies or services.
(5) No member of thne trade shall use advertising whether printed,
radio, display, or of any other nature, which st~at.es any definite
amnounlt of money as "L down payment "' and any definite amount of
money as a subsequent Payment, be it dajily, weekly, monthly, or at
the end of any other period of time.
(6) The Colde Auth~ority shall make recommendations to the Ad-
minist~rator for rules and regulations concerning advertising which
shall become effective upon approval of the Administrator after
such notice and hlearing as he may prescribe.
2. First quality.--No member of the trade shall use or dispense
any ophthalmic products whlich are not of first quality~ in accordance
wi~th: standardsl to be here after set up in cooperation with the Bureau
of Standards and approved by the Administrator.





161


3. Price DisoriminationL.-No member of the trade shall discrim-
inate directly or indirectly in hris current price between purchasers
of the same quality, grade, or quantity of ophthalmic products. This
provision, however, shall not apply with respect to clergymen, re-
ligious and charitable institutions, sales to a member's employees, or
to persons whose inability to pay has been established by a repu-
table social service agency.
4. Secret Commnis~siots.-No member of t~he Trade shall give, or
offer to give, any pfescriber of ophthalmic products, who hans no part
in the production, sale, handling, fitting or dleiv-ering of the oph-
thalmic products, thus prescribed, any commission, rebate, discount,
reward, gift, honorariumi, emolument or other remuneration in the
form of money or any other property.
5. False Billin~g.--No member of thle trande shall knowinglyr with-
hold from or insert in any quotation or invoice any statement that
makes it inaccurate mn any material particular.
6. Inacccuracte La~beling.--No member of the trade shall brand or
mark or package any goods in any manner which is intended to or
or does deceive or mislead purchasers with respect to the brand,
grade, quality, origin, size, substance, character, nature, finish, ma-
terial, content, or preparation of such goods.
7. No member of the trade shall secretly offer or maoke any pay-
ment or allowance of a rebate, refund, commission, credit, un-
earned discount or excess allowance, whether in the form of money
or otherwise, nor shall any member of the trade secretly offer or
extend to any customer any special service or privilege not ex-
tended to all customers of ihe same class, for the purpose of in-
fluencing a sale.
8. Bribing.--No member of the trade shall give, permit to be
given, or directly offer to give, anything of value for the purpose
of influencing or rewarding t~he action of any employee, agent or
representative of another in relation to the business of the emiployer
of such employee, the principal of such agent or the represented
party, without the knowledge of suchl employer, principal or party.
This provision shall not be construed to prohibit free and general
dist~ribultion of articrles commonly usedC for adCvert.singr excp~t. so far
as such articles are actually used for commercial bribery as herein-
above defined.
9. Prohibition Agans~~rt U7se of Subterfugea.--No member of the
trade shall use any subterfuge to frustate t~he spirit, and intent of
this Code, which is, among other things, to increase employment, to
remove obstructions to commerce, to reduce hours of work and raise
wages to a living basis.
ARr1CLE IX 1C~ODIFICATION

1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance wvit.h the proni-
sions of subsection (b) of Section 10 of thle Act, from timne to time
to cancel or modify any order, approval, license, rule or regulation
issued under said Act.
2. Such of the provisions of this Code as are not required to be
included herein by the Act may, with the approval of the Admlinis-




UNIVERSITY OF FLORIDA

162 3 1262 08594 6043

trator, be modified or eliminated in such mranne~r as may be indi-
cate~d by the needs of? the public, by changes in circumstances, or by
experience. Acll of the p~rovisions of this Code, unless so modified or
eliminated, shall remain in effect until June 16, 1935.

ARrrlCLE X--AloNoroLTES, ETC.
1_. No p'rovision of this Code shall be so applied as to permit
monopolies of monopolistic practices, or to eliminate, oppress or dis-
criminate against small enterprises.

AnnIcLE XI--PRICE INCREASES

1. Whereals the policy of the Act to increase real purchasing power
will be made more ditheult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases except such as maiy be required to meet individual cost
should be delayed, but when .made such increases should, so far as
possible, be limited to actual additional increases in the seller's costs.
ARTICLE XIi-EFFECTIV'E DerE~

This Code shall become effectivee on the second M~ondazy after its
approval byT the President.
Ap~proved Gode No. 40.j~
Registry No. 1&1-9.