NATIONAL RECOVERY ADMIINISTRATION
C ODE OF FAIR C OMRPETITI ON
AS APPROVED ON JANUARY 16, 1934
UNIV. OF FL LIA.
Approved Code No. 209
Registry No. 1640--06
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Approved Code No. 209
CODE OF FAIR COMPETITION
MUSIC AL M~ERC HAND ISE MIANUFACT DURING
As Approved on January 16, 1934
APPROVING CODE OF FAIR COMPETITIION
MUSICAL MERCHANDISE M AN UFACTURIN G INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
RecoveryT Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the M~usical Mierchandise M~anufacturing I~n-
dustry, and hearings having been duly held thereon and the annexed
report on said Code, containing findings with respect thereto, having
been made. and directed to the President:
NOWV, THEREFORE, on behalf of the President of t~he United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Exec~utive Orders of the
President, incluiding 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
w~ith the pert.inent provisions and will promote the policy and pur
poses of said Tit~le of said Act; and do hereby order that said Cd
of Fair Competition be and it is hereby approved.
HUGH S. JoHNSON,
Administrator for Indulstrial! Recovery.
Approval Recommended :
G;EORGE L. BERRY,
Janzuacry 16, 1394.
a2302 -813--5&----34 (191)
The Wh'ite House.
Sm~: A Public Hearing on the Code of F'air Competition for the
Musical M~erchanndise Mlanufacturing Industry, submitted by the
National Association of Musical Mlerchandise Mlanufacturers, located
at 45 West 45t~h Street, New York, N.Y'., was conducted in W~ashing-
ton on the 15th of November 1933 in accordance with the provisions
of the National Industrial Recovery Act. The Association claims
to represent eighty (80%0) percent of the Industry.
The maximum hours permitted under this Code are forty (40))
hours per week, averaged over a four (4) weeks' period; provided,
however, that such employees shall not be employed more than forty-
eight (48) hours in any one (1) week; and provided further that
such employees may be permitted to work a total of not to exceed
eighty (80) additional hours during any twelve (12) months' period.
For clerical or office employees a maximum of forty (40) hours
per week is provided, except that at inventory periods, such em-
ployeesp may work a maximurm of forty-eight (48) hours per weekr
for a total of not to exceed three (3) weeks in each six (6) months'
period. However, overtime at the rate of time and one third is
provided for all hours per week over forty (40).
The minimum wage scale for male employees is thirty-five (35$)
cents p~er hour. The minimum wage for female employees is thirtyv-
two (32e) cents per hour, and for clerical or office employees a
minimum wnage of fifteen ($15.00) dollars per week is provided,
except that office boys and offce girls who are between the ages of
sixteen (16) and eighteen (18) years may be employed at a rate not
less than eighty percent (80%0) of such minimum wage and are to
be limited to one (1) in number or ~fie percent (5%T) of the total
number of clerical and office employees employed by any member
of the Industry.
Because of the fact that a musical instrument is not classed as a
necessity of life, but is a commodity which supplies a, cultural want
of mankindl, it is not purchased until the more vital needs have been
supplied. Not until prosperity has become well establishedX will this
Industry experience a real upturn in business, with the resultant
reemployment of a. substantial number of employees. Based on
information furnished by this Industry, wage-earner employment
declined 33.3 percent from 1928 to 1932.
On the basis of a 40-hour weekr, 160 wage earners should benefit
through reemiployment, bringing the total number of wage earners
Thle total vanlue of products for the year 1928 was $3,160,000.
Since then the value of products has gradually decreased from year
to year until during 1932 it amounted to only $1,228,000 or 61.1 per-
cen't under t~he 1928 total. The percentage of decrease of each suc-
ceeding year including 1932 under the 1928 total was c22.0, 26.3,
38.4, and 61.1, respectively.
Even though 1928 was a, peak year, the establishments actually
w~ere then operating at TO percent of their capacity. WVhile the
capacity has remained almost the same for each y~ear since 1928,
having declined only 12.5 percent., production has declined 61.1
The Deputy Administrator in his final report to me on saidl Code
having found as herein set forthi and on the basis of all the pro-
ceedingas in this matter;
I find that:
(a) Said Code is well designed to promote t~he policies anid pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try' for the purpose of cooperative action among the trade groups, by
inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by elimi-
natina ~unfair competitive practices, by promoting the fullest pos-
sible utilization of the present productive capacity of industries, by
avoiding undue restriction of production (.except as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, b
reducing and relieving unemployment't by improving standards o
labor, and by otherwise rehabilitating mclustry.
(b) Said Industry normally employs not more than 50,000 emn-
ployees, and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with t.he p~erti-
nent provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsec-
tion (b) of Section 10 thereof; and that the applicant association is
an industrial association truly representative of the aforesaid Indus-
try; and that said association imposes no inequitable restrictions on
admission to memberships, therein.
(d) The Code is not designed to and will not permit monopolies or
(e) The Code is not. designed to and will not eliminate or oppress
small enterprises and will not operate to disciriminute agaiin~st 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 Industry has cooperated in a most. satisfactory manner wiith
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 revised represents an effectiv-e, practical, equitable solu-
tion for this LIndustry, and for these reasons this Ciode has been
Hnoo S. JoHNSON,
JANUARY 16, 1934.
MUSICAL MERCHANDISE MANUFACTURING INDUSTRY
To effectuate the policies of Title I of the National Industrial Re-
covery Act., this Code is established as a Code of Fair Competition
for t~he Miusical MCerchandise Manufacturing Industry, and shall be
the standard of fair competition for this industry and binding upon
every member thereof.
SECTON 1. The term musical merchandise as used herein is
defined t~o mean all musical instruments, and all other allied prod-
uctsi commonly dealt in in the musical-instrument business, includ-
ing all accessories, at~tachlments, supplies, parts, materials, strings
for musical instruments, instrument cases and covers, with the ex-
ception of the products of the piano, organ, and band-instrument
SEC. 2). The term musical merchandise manufacturing industry "
as used herein is defined to mean the production, fabricating, re-
pairing, reconstructing, remodeling, and the assembling of musical
merchandise and allied products, and/or materials and supplies there-
of as defined in Section 1 of this Article.
SEc. 3. Thle term employee as used herein includes any person
engaged in any phase of the industry in any capacity receiving
compensation for his services, irrespective of thei nature or method o~f
payment of such compensation.
SEC. 4r. Thle term employer "as used herein includes anyone
byv whom any such employee is compensated or employed.
SEC. 5. Thle term "L learner as used herein, shall mean an employee
without previous experience or employment in the industry engaged
in learning any one of the skilled or semiskilled operations incidental
to the musical merchandise manufacturing industry.
SEC. 6. The terms "Act ", and "A~dministrator as used herein
shall mean respectively Title I of the National Industrial Recovery
Act, and thle Admninistrator for Industrial Recovery.
ARTICLE 11 OURS
SECTION 1. No employee except as herein otherwise provided shall
be permitted to work in excess of forty (40) hours per week, aver-
aged over a four (4) weeks' period; provided, however, that such
CODE OF FAIR COMPETITION
employees shall not be employed more than forty eight (48) hours
in any one (1) week; and provided further that any employee in-
cluded in this section may be permitted to work a total of' not to ex-
ceed eighty (80) additional hours during any twfelve (12) months'
period, provided that overtime at; the rate of time and one third is
paid for the additional hours worked over forty (40) hours per
SEC. 2. NO person employed in clerical or office work shall be per-
mitted to work more than forty (40) hours per week, except that at
inventory periods, such employees may work a maximum of forty
eight (48) hours per week for a total of not to exceed three (3)
weeks in each six (6) months' period, provided that time and onle
third shall be paidl to such employees for all hours per week over
SEC. 8. The foregoing stipulations of Sections 1 and 2 of this
Article shall not apply, however, to employees in manageriald
supervisory, and executive capacities, technicians on research an
engineermg~ staffs, or demonstrators, who receive thirty-~five dollars
($35.00) or more per week, nor to commercial traveling salesmen.
SEC. 4. Service men shall not be permitted to work in excess of
forty-eight (48) hours per week.
SEc. 5. WaTtchmen and Firemen shiall not be permitted to work
more than thirty~-six (36) and forty-eight (48) hours in alternate
weeks, or an ae'rage of fortyv-two (42) hours per week; or Firemen
shall be allowed a ten (10%) percent tolerance on the hours stipu-
lated in Section 1 of this Article.
ERIPLOYM\ENIT BY $EV'ERAL EBIPLOYERS
SEC. 6. NO employee shall be permitted to work for a total number
of hours in excess of the number of hours prescribed herein, whether
he be employed by one or more employers.
An-rlCLE I7- TVAGES
SECTION 3.. No male employee shall be paid less than at the rate
of thirty-five cents (35g) per hour. No female employee shall be
paid less than at the rate of thirt~y-t~wo cents (32e) per hour.
MIINIlllUM~ WAGE FOR CLERICAL AND OFFICE EMIPLOYEES
SEC. 2. NO person employed in cler~ical or office work shall be paid
at, a rate less than fifteen dollars ($15.001) per week, except that office
boys and office gir~ls w-ho are betweenl the agies of sixteen (16) and
eighteen (18) years may be employed at a rate not. less than eighlty
percent. (80%-) of such minimum wage. The total number of suchz
office boys and office girls emnployed by any member of the industry
shall not exceed one (1) in number or five~ percent (5S%) of the total
number of his employees covered under this section, w~hiche\er is
SEc. 3. No learner shall be paid less than eighty percent (80%0)
of the minimum wage prescribed in Section 1 of this Article. The
period of learrning for each operation shall be determined by the
Code Authority subject to thbe approval of the Administrator, but
in no ease shall suich period exceed-six (6) months.
SEc. 4. A person whose earning capacity is limited because of age
or physical or mental handicap may be employed on light work at a
wage below the mninimnum established by this Code if the employer
obtains from the State Authority designated by the United States
Department of Labor a certificate authorizing his employment at
such wages andl for such hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons employed by him.
PIECEW'ORKI COMPENSATION~~ N -MIN1IMU WAGES
SEc. 5. This Article establishes a minimum rate of pay which shall
apply, irrespective of whether an employee is actually compensated
on a ti me-rate, pieceworki performance, or other basis.
WAGEs ABOVE HINIMUMM
SEC. 6. It is t.he policy of the members of this industry to refrain
fromt reducing the compensation for employment which compensat-
tionn was prior to June 16, 1933, in excess of the miinimum wage here-
in set forth, notwithstanding that the hours of work in such employ-
ment may be reduced; and, unless since such date such adjustments
have been made, all members of this industry shall endeavor to in-
crea~se the pay of all employees in excess of the minimum wage, as
herein set forth, by an equitable adjustment of all pay schedules.
SEC. 7. Female employees performing substantially the same work
as male employees shall receive the same rate of pay as male em-
ARTICLE V--GENERAL LABOR PROV'ISIONS
CHILD LABOR PROVISON
SECTION 1. No pe1'rson under sixteen (16) years of age shall be
employed in thle industry. No person under eighteen (18) years of
age shall be emnployed~ at operations or occupations which are haz-
ardouss in nature or dangerous to health. The Code Authority shall
submiit to the Adminlistrator within sixty (60) days after the effec-
tire date of this Code a list of such operations or occupations. In
any State an employer shall be deemed to have complied with this
provision as to age if he shall have on file a certificate or permit duly
issued byr the A~uthority in such State clmplowere d to issue emplloy-
ment or age certificates or permits show~ing thant the emiployee is of
the required age.
PRO\TSIO)NS FFUMn 'THE ACT
SEC. 2. In compliance with Section 7(ta) of the Act it is provid-edl
(a) Empyloy~ees shall have the right to organize and bar~gain col-
lectively, through representatives of their own choosing, and shanll
be free from the interference, restranint, or coercion of e-mploye~rs of
labor, or their agents, in t~he dlesignat~ion of such r~epr~esentatives or in
self-organization or in other concerted activities for the p-ur~pose of
collective bargaining or other mutual aid or protection.
(b) No employeee and no one seeking employment shall be required
as a condition of employment to join any company umion or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing, and
(c) Employers shall comply with the miaximum hours of Inbor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
RECLASSIFICA~TION OF EMPLOYEES
SEcr. 3. No employer shall r~eclassify emlployeces or duties of occu-
pations performed or engange in anyv other subterfuge for the purpose
of defeating the purposes or provisions of the Act or of this Code.
STANDARDS FO~R sAFETY AND1 HIEALTHE
SEc. 4. Everyv employer shall make reasonable provision for the
safety and health of his employees at the place and during the hours
of their employment..
SEC. 5. No provisions in this Code shall supersele. an State or
Federal laws which impose on employers more string~ent require-
ments as to t~he age of employ~ees, wages, hours of w\orki, or as to
safety, health, sanitary or general wrorking conditions, than are im-
posed by this Codle.
SEC. 6. All syvstemns of contracts between emp~loyer and emnploy-~ee
for the mlanufactur~e of any pr'oduct o' Ipart thereof or for worllk to
be done at a specific price und.l or' by' whlich employees engage other
employees to wTor~k for them, are prohlibited byv this Code.
SEC. 7`. All employers shall post complete copies of this Code in
conspicuous places~ necessible to emp:loyees.
~ARTICLE VI--ORNoZAmmaow, POWER, AND UITIES OF THE CODE
SECTION 1. A Code Authority is hereby established to cooperate
with the Administrator in the administration of this Code and shall
consist of not more than seven (7) nor less than three (3) members of
the industry t~o be chosen by a fair method of selection approved by
the Administrator. The Administrator in his discretion may ap-
point not more than three (3) additional members without vote and
wTithlout compensation from the industry to serve for such period of
time and to represent the Administrator or such group or groups as'
hle may designate.
SEC. 2. Vacancies in the personnel of the Code Authority selected
by the industry shall b& Slled through the appointment by the Ad-
ministrator upon nomination of the Code Authority.
SCEc. 3. Each trade or industrial association directly ridrcl
participating in the selection or activities of theCoeAuthority
shall impose no inequitable restrictions on membership, and submit
to the Administrator true copies of its articles of association,. by-,
laws, regulations, and any amendments when made thereto, together
writh such other information as to membership, organization, and
activities as the Adm~inist.rator may deem necessary to effectuate the
purposes of the Act.
SEC. 4. In Order that the Code Authority shall at all times be truly
repesetatve f te idusryand in other respects comply with
the provetaisio of the Acdut, administrator mnay provide such hear-
ingrs as he may deem proper; and if he shall find that the Code Au-
thority is not truly~ representative or does not in other respects com-
ply with the provisions of t~he Act, he may take such action as he
may\ d-eemn necessary under the circumstances.
S~c. 5. Members of the industry shall be entitled to participate
inl and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting
to- and complying with the requirements of this Ciode and sustaining
their reasonable share of the expenses of its administration. Such
reansonalble share of the expenses of administration shall be deter-
ruined by the Code Aut~hority, subject to review and disapproval by
thc A~dmninistrator,, on thle basis of volume of business and/or such
other factors as mayB be deemed equitable.
,CEC. F). Nothing contained in this Code shall constitute the mem-
bars- of the Code Authority partners for any purpose. Nor shall
any member of the Code Authority be liable mn any manner to any-
oner for any~ act of any other member, officer, agent, or employee of
the C~ode Authority. Nor shall any member of the Code Authority,
exerIcising reasonable diligence in the conduct of his duties here-
ondler, be liable to anyone for any action or omission to act under
thlis Code, except for his own willful misfeasance or nonfeasance.
POWFERS AND DUTIES
SEC. 7. The COde Authority shall have the following powers and
duties to the extent permitted by the Act, subject to the right of the
Administrator, on review, to disapprove of any action taken by the
(a) To administer the provisions of this Code and provide for
the compliance of the industry with the provisions of t~he Act.
(b) To adopt bylaws and rules and regulations for its procedure
and for the administration and enforcement of the Code.
(c) To obtain from members of the industry as soon as the neces-
sary readjustments within the industry can be made, reports based
on periods of one, two, or four weeks, or multiples thereof, for use
of the Code Authority and the Administrator in the administration
and enforcement of the Code, and to give assistance to members of
the industry in improving methods, or in prescribing a uniform
system of accounting and reporting. All individual reports shall
be kept confidential and only general summaries thereof may be
(d) To obtain from members of the industry such additional in-
formation and reports as are required for the a.dmninistration of the
Code and to provide for submission by members of such information
and reports as the Administrator may deem necessary for the pur-
poses recited in Section 3 (a) of the Act, which information and
reports shall be submitted by members to such administrative and/or
government agencies as the Admlinistrator may designate; providled
that nothing contained in this Code shall relieve any member of the
industry of any existing obligaations to furnish reports to any govera-
ment agencies. No individual reports shall be disclosed to any other;
member of the industry or any other party except to such govern-
mental agencies as may be directed by the Administrator.
(e) To receive complaints of violations of this Code, make investi-
gations thereof, provide hearings thereon and adjust such comu-
plaints, and bring to the attention of the. Administrator for
prosecution, recommendations, and information relative to unad-
(f) To use the Nuational Association of Musical merchandisee
Manufacturers or other trade associations and agencies as it deems
proper for the carrying out of any of its activities provided for
herein and with the approval of the Administrator to pay such trade
associations and agencies the cost thereof, provided that nothing
contained herein shall relieve the Code Authority of its duties or
responsibilities under this C~ode and that such trade associations and
agencies shall at all times be subject to and comply with the provi-
(g) To coordinate the administration of this Code with suchr
other codes, if any, as may be related to the industry, or any sub-
division thereof, and to delegate to any other administrative author-
ity, with the prior approval of the Administrator, such powers as
will promote joint and harmonious action upon matters of common
(h) To secure from members of the industry who assent to this
Code and/or participate in the activities of the Code Authority such
proportionate payment of the expenses of maintaining the Code Au-
thority as may be determined by the Code Authority and approved
by the Adiministrator.
(i) To cooperate with the Administrator in regulating the use of
the N.R.A. Code Insignia solely by those employers who have agreed
to, andl are complying with, this Code.
(j) To initiate, consider, and make recommendations for the mod~i-
fication or amendment of this Code.
ARTICLE VII TRADE PRACTICE RUJLES
For all purposes of the Code the acts described in this Article shall
constitute unfair practices. Any member of the industry who shall
directly or indirectly through any officer, employee, agent, or repre-
senatie, nowngy ue, mplyor permit to be employed, any of
such unfair practices shall be git favoaino h oe
SECTION i. NO member of the industry shall publish advertising
(whether printed, radio, display, or of any other nature), which is
misleading or inaccurate in any material particular, nor shall any
member, in any way misrepresent any goods (including but without
limitation its use, trade mark, grade, quality, quantity, origin, size,
substance, character, nature, finish, material, content, or preparation)
or credit terms, values, policies, services, or the nature or form of the
SEC. 2. NO member of the industry shall use advertising or selling
methods or credit terms which tend to deceive or mislead the cus-
tomerr or prospective customer.
SEc. 3. No member of the industry shall knowingly withhold
from or insert in any quotation or invoice any statement that makes
it inaccurate in any material particular.
SEC. 4. NO member of the industry shall brand or mark or pack~
any goods in any manner which is intended to or does deceive or
mislead purchasers with respect to the brand, grade, quality, quan-
tit~y, origin, size, substance, character, nature, finish, material, con-
tent, or preparation of such good~s.
SEC. 5. No member of the industry shall use advertising or other
representation which refers inaccurately in any material particular
to any competitors of their commodities, prices, values, credit terms,
pohlces, or services.
SEc. 6i. No member of the industry shall publish or circulate un-
justified or unwarranted threats of legal proceedings which tend to
or have the effect of harassing competitors or intimidating their
customers. Failure t~o prosecute in due course shall be evidence that
any such threat is unwarranted or unjustified.
SEC. 'i, NO member of thle industry shall secretly offer or make
any paymvnent or allowance of a rebate, refund, commission, credit,
unearned discount, or excess allowance, whether in the form~ of
money or othlerwise, nor shall a member of the industry secretly
offer or extend to any customer any special service or privilege not
extended to all customers of the same class, for the purpose of
influencing a sale.
SEC. 8. RTO member of the industry shall ship commodities on mem-
orandium or consignment, except under contract or bona fide orders.
SEc. 9. No member of the indlustryT shall give, permit. to be given, or
directly offer to giv~e anylthing of vaRlue for the purpose of influencing
or rewarding the action of any employee, agent, or representative of
another in relation to t~he business of the emp~loyer of such employee,
the principal of such agent, or the represeInted parllty without the
knowledge of such employer, principal, or par~ty. Commercial brib-
ery provisions shall not be construed to prohibit fr~ee and general
distribution of articles commronly used for adv~ertisingr except so far
as such articles are act.uatlly used for commercial bribery as herein-
SEC. 10. No member of the industry shall attempt to induce~ the
breach of an existing contract between a competitor and his employee
or customer or source of supply; nor shall any such member interfere
with or obstruct the performance of such contractual duties or
SEC. 11. No member of the industry shall repudiate a contract en-
tered into in good faith when the purpose of such repudiation is to
create for such member an Lunfair price advantage.
1. This Code and all the provisions thereof ure expressly made,
subject. to t~he bright of the President, in necordance with the pro-
visions of subsection (b) of Section 10 of the National Industrial
Recovery Act, from time to time to cancel or modify any order,,
approval, license, rule, or regulation issued under said Act.
2. This Code, except as to provisions required by the Act, may
be modified or amended on the basis of experience or changes in
circumstances, such modificcation or amendments tlo be based upon
application to the Administrator and such notice and hearings as
he shall specify, a.nd to become effective on approval of t~he Admin-
istrator unless otherwise provided.
ARTICLE IS-RlONOPOLIEs, ETC.
No pr~ovision of this Code shial be so applied as to permit mionop-
olies or monopolistic practices, or to eliminate, oppress, or discrim-
inate. against small enterprises.
ARTICLE X-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made impossible of consununation if prices of goods and
services increase as rapidlly as wages, it is recognized that price
increase except such as mnay be required to meet individual cost
should be delayed. B~ut when made such increases should, so far
as possible, be limitedl to a~ct.ual additional increases in the seller's
ARTICLE XI- EFFECTITY- DxrE
This Code shall become effective on the second 1\Iondlay after itts
approval by the Adminristrator.
Approved Code No. 209.
Registry No. 10-10-06.
.=_ us puuiiHD
UNIVERSITY OF FLORIDA
3 1262 08728 5465