Code of fair competition for the vacuum cleaner manufacturing industry as approved on March 2, 1934


Material Information

Code of fair competition for the vacuum cleaner manufacturing industry as approved on March 2, 1934
Portion of title:
Vacuum cleaner manufacturing industry
Physical Description:
p. 449-458 : ; 24 cm.
United States -- National Recovery Administration
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Vacuum cleaners -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


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. 1629-1-01."
General Note:
"Approved Code No. 317."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004917272
oclc - 632390946
System ID:

Full Text







I 'I
Far sale by the Superintendent of Documents, Washington, D.C. . Price 5 cease

Approved Code.No. 317

Registry No. 1629--1--01



This publient~ion is for sale by the Sup~erintend~ent of Documents, Government
Printing OCe.i~ W~adhington, D.C., and by district otfices of the Bureau of
Foreign and Domestic Commerce.
Atlanta, Ga.: 504 Post Offtice Building.
.Linuinginarlr Ala.: 257 Federal BuildInX.
Bioston, Mas~s.: 1801 Customhouse.
Buffalo, N.Y.: Chamllbe~r of Commerce Luildilng.
Charleston, S.C.: Chamber of Comnmerce Building.
ch !iin :l Ill.: Suite 1 706, 201 Nor rth W~ells Street.
C~levo~unl], Ohio: Chamber of Commerce.
Dallas, Texs.: Chalmber of Commerce Building.
D~etroit, Mlich.: 801 F~ir~t National Ba~nk Imlih~lill.:.
Houston, Tex.: ChamberI.;'I of Commerce Bulilding.
IIdiarnalmli--.- Ind.: Chamber of Comzmerce H~uibling.
.Tooke..m ~ille, Fila.: Chamber of Commrerce Buildlilg.
K~ansas City, Mlo.: TMS2 Bailtimore Avpenue.
Los Angelt;. Calif.: 1163 South Broal~dw-ay.
Louisville, KEy : 408 Fe~deral rUuild~ine
Memphis, Tenn.: 229 Federal Buildling.
M~inneaplolis, MIinn.: 213 Fed~eranl Buildling.
Newv Orleans.1~ La.: Room 225-Ai, Customh~ouse.
New YorkT, N.Y.: 734 Custombour~ise.
Nor~lfllk, Va.: 406 East Plumue Street.
Phil:Ishl l1.111. Pa.: 422 Commercial Trust Building.
Pit(. Lurgh.. Pa.: Chamber of: Commerce BEuilding.
Portland, Oreg.: 215 New~\ Post Office Building.
St. Louis, Mlo.: 506 Olive Str'eet.
San Francisco, Calif.: 310 Custombouse.
Seattle, Wash. : 809 Flederal Offil:c- Building.

Approved Code No. 317



As Approved on. Marchr 2, 1934



An application having been duly made pursuant to and in full
compylianlce with the provisions of Title I of the National Industrid
RecoveryS Act, app~rovedt June 16, 1933, for approval of a Code of
Fair Comlpetition for thre Vacuum Cleanler Mannufacturingl Indlustry,
and hearings having b~een duly held t'hereonl andl the annexed report
on said Code, continillng findings with respect thereto, having been
mnade anrd directed to thie President:
NOW, TH[EREIFORE, on. behalf of the Presidlent of the U~nited
States, I, Hugh S. Johnson, Ad~cministrator for Industrial Recojver~y,
pursuant to authority vested in me by Executive Orders of the
President, including 1Executive Order No. 6543-Ac, dtated Decemnber
30, 1933, and otherwise; do hereby incorporate by references said
annexedl report and do find that said Code comp~lies in all respects
with the pertinent provisions and will pooeteplc n
purposes of said Title of said Act; and droot hereb order thamd
Code of Fair Competition be and it is hereby aIpproed~.

HOon S. JoH S SON,
A dii.iniYfistrato 01 0'](7fo In ti~al Rco~ccry~.
Approva"l recommnntendd:
~ivlisionZ Admnljris~tralor.
March 2, 1934.



The PnesmerrN
T'he Whliite House.
SIR: This is a reporIt on the Code of Fair Compl-eltitionl for the
Vacuumz Cleaner Mai~lnufacturingP Industry as revised after a public
hearings condtucted in Washington, D).C., on No\-l-mbe~r 17, 10l:.;:;, in.
accolllr llnt' l with the pnrovisincr s of the Naltional~l Industrial Rr('.overy''3

The Codfe provides a talndarld wor~k wIeek of for~ty (40) hours,
except during peak periods which :!re- limited to six (6) w~eeks in
any six (G) month~s. No employee masy work mo111r. than sixY (6)
dalzys or mor~re than forty-rnight: (48) hours~ inl any one week.
These provisionss are aLpplicable except inr cases of rand agency andrl
to employees ;nongl I in executive, Illrrsnoge~i; rin or supervisory capac-
ities andic 1., I--u..1 secretali ic r ..v~i\iving i.::00 oir more per weekr, andl
to outl!-ide sallesmlen.
Wa'j't( hown~.I ma;Y be empfloyedl not to exceed. forty-foulr (11) hoursl'
in any one week.
Wh`ibi l thle uncer'ivilntie s of production p~rocesses in the Indulstry
unk,!l it HIll~il Ilk alwciays to assure anX sI.;ht (8) hour day, the Indllu.c-
tryI rec~ognize~s the pl isn-~iple o~f thle eight~ (8) hour llayS and the Codelc
conltainrs a statiemecnt to thlt; ef~fcret.
A~ minimum~tt \\lnge of forty (40) cents per hlour is provcidedt, wi;th a
rate of $15i.00( per week1 for office emnployeeql~ '''-optLL that a limlited!
number of t lii+~~ boys andl girls maty be pa~id at the r~ate of $12.00 per
weekr. Lezr~ners, whro ma2y be so claI;-Illr d for a period of three (3)
months, maly be pa'id n"ot less than ceighty (80) per~cen-t of the mlinimnum

Thle Codec contains a provision requiringll thlrat, with a forty (40)
hou.r wTeeki and. an eight (8) hour day as a bas~1is, o-vertimre be paid~
for excess hours at the rate of one and one-third times the nrormnal
rate paid.
However, watchmnen and tlrucke~rs,~ and employees in receiving and
shipping~ depatrmelcnts ar~e permitted a ten per' cent tolerance as
ree-n rdts' the effect of this provision.
Child labor is prohibited, andlc no lx''-'-on under eighlteen (18) years1
of age mlay be employed~ in any hal~zalllrdos occ~upat~ion.

TIhe ma1:inulfoeiture and sale o~f vanc~luu c~leaner~s is a dlist inct indulstryS
and the bulk~ of production is for household use although somle units
are des~ignedi for hotel and similar use.


The volumne of sales for 1!,33 as estimaitedl, will be about fifty
(50) per cent of thant of 10291. How\ever, this rcpretsents~ an inlclc-ree
of thirty-three anid a third (331,3) per cenlt over sales in 1923. Theli
value of units sold in 1929 was be~twnc~l $50,000,000 and $6j0.000,000.
The estimated value of 1933 sales is betwrPeen $20,000,000 and $23j,000,-
000. There has been anl incrleasie of fromn fifteen (15) to twecnty
(20) per cent in the cost of production due to opera;tinlg under thne
Preidet.'eem~ployment Agcrleemnent. TChis additio-nal cost was
not passed on to the consumer but absorbed by a steadily inrllen ingr
volume of sales.
In the earlyl part of 1933, the number of employees gendualoilly
decrleased until, in the months of September and Octo~ber, due to the
President's Reemploymnent Agrlreemnt~l, an increase of about twelve
(12) per cent occu~rr~ed. In 1928 the Industry employed about
5,400 people, in. Januanry3 1933, 4,100 and in, October 193,',3, 6,300.
Should the pre~senlt demand continue, it will be necessary to inlcr~ea e
the numlber of employees in this Indlustry both in the factory and
in the office.
The hourly pr~ovisio~ns in. this Code materiallyr decr~ease the norml~lal
daily and werekly work periods in this Industry. Prior to 1929 the
Inldustryr workledl a nine (9) hour day and a forty-five (45) to
fifty-five (55) hour week.
This Industry has invariably maintained a, relatively high wage~
standard. Although the pay-roll for 1933 is seven and a half ('71/2)
per cent bielow that of Septemlber, 1929, it is twelve (12) per cent
above that. for the first seven months of the current year. Due to the
increased in the number of em~ploy3ees and the wages paid, more than
$875~,000 has been added to the y~earlyJ pay-roll.
About twenty-five (25) per cent of the factory employees in this
Industry are women who are employed at light work requiring little.
skill. Tihe. Code incr~eases th~e hourly rate of these emnployJees from
a previous~ stand~r ard of twenty-four (i24) cents per hour to a mlinli-
mumin of thirty-six (36) cents per hour.

The Depulty Admninistratorl in his final report to met on said Codle
hav~ing found as herein set forth and on the basis of all, the proc~eedl-
ings in this matter;:
I find that:
(a) Saidl Code is well designedt to promote the policies and pur11-
poses of Title I of the Nat~ional Inidustial Recovery Act, inlcluding
removal of obstructions to the free flow of interstate and foreign
commerce: which tend to diminish the amount thereof and will pro-
vide for th~e general welfare by promoting the organization of indus-
t.ry for t~he purpose of coop~erativ-e action amnongr the trade groups,
by inducing and maintaining united action of labor and manage-
mnent under adequate governmental sanctons andl supervision, by
elimninating unfair comipetitive practices, by promoting the fullest
possible utilization of the present. productive capacity of indulstries,
by avoiding undue restriction of production (except as m~ay be temi-
porarily required), by increasing the consumption of in~dustr~ial and
agriculltural products through inrpficram puirchasin power, by re-


(dur:ing~j and relieving unemployment~, by improving st~an-dards of
labor, and boy otherwise rehabilitating industry.
(b) Said Industryr normally employs nrot more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with. the perlti-
no~rt provifsions of said Title of said Act, including without limlitattionr
Subsect~ion (a) of Sectiont 3, Slbls~c~tion~ (a) of Section 7, and Sub-
s.c~t lon (b) of Section 10 thelr~eof ; and that the app~lica~nt group is an
indlustrisl group truly representative of the aforesid~lc Industry; and1;
thlat said group imposes no ineqcuitab.le restrictions on admission to
Inember.l.~.shlip) therein.
(d) The Code is not designed to and will not permit mlonorpo~lies
or monopolistic practices.
(e) The Code is nlot clrsignedl to andl will not eliminate or o~ppress
~-.nia11 (ll sterprises and will not operate to dliscr-im~inu~te aga1T~ilt. them.
(f) Those I.nIer:Led~ in other -.tepl of thle economics process have nut.
been deprived of the rightt to be heard prior to approval of -;aild Codelt.
F~cr these reasons, t~hereforel, I have approved this Code.
RePlcl'i fully,3
Huanc; S. Jon xrson-,



To e~ffeictuate~ the policies of Title I of th~e Naltionlal Industrialin
Recove~ry Act, the following pr~ovibio-ns are submitted as a Code of
.Fair Competition for the Vacuumn Cleaner Mainufacturingn~r Industry,
and uplon approval byll thre Presidenlt, shall be the. standards of fair
competition for this Indus-try.

T~he term "Indlcustry ", as used hlerein, is detfinedl to mneanr thle
mlanufactu~re and sale by the manufacturer (including his wholly
ow~nedl subsidiaries, and distributors of vacuum cleaners exclusively,
for whom the manufacturer mannufactur~es under contract products
of thle Industry whlichi are3 sold under such distributor's own trade
unmne), to the wholesaler or retailer, or, whether for himself or for
the retailer, to thie consumer, of v-acuumi cleaners.
Thle term employees ", as used herein, includes any person elln gaged
in any phase of the Indiustry in any capacity in the nature of erm-
ployee, irrespective of thie mlethl~ods of payment of his compensationl.
The term employers "", as used herein, includes anyone by whom
such an employee. is so emplloy)edl.
Tlhe term "member of the Inldustry includes anyone enigagedt in
the Va~CUUm1 Cleaner nMnufactu~ring Industry, either as an empiloy~er
or on his own behalf.
The term "Association ", as uset ~herein, means Vacuum Clennler
Manufacturers' Association.
The term "' Executive Comlmittee ", as ulsedl herein, !neans the 1Ex-
ecutive Committee of Vacuum Cleaner IManufactulrers' Assoc~iation.
The terms "LPresident ", '"Act ", an( "Adlministlrator ", as used
herein, shalll mean respectively the Pr~esident, of the United States,
Title I of the National Industrial Recovery Act, and the Admlinis--
traitor for Industrial Recovery.
The terml Code Authority ", as used herein, means the Codle
Authority constituted by Article VI of this Code.
The term "'effective dfate "', as used herein, means the secondir Mlon-
day after this Code shall have been approved by the President.

A. Except as provided in Section B of this article, no emplloyee
shall be permitted to w~ork in excess of the fo10~llowng mnxmumlll
1. For employees engaged in, the production of prodc'I'ts of thle
Industry, and labor operations dlirectly incident there -for~ty hours
in any one week and eight hours in any 24-hour period.


2. For wachmerlll~n truckers, and employees in recepivin g anrd ship-
pi~in diepartments-a.;-I tolerance of 10%o above the w-~eeklyl and daily
mnaximumn hours11 provided for emp~loy~~ees classified under subs~ectionl
one (1) above.
3. 1For office, clerical and other employees-forty hours in any one
B. Ex(cp~tions :
1. A~ny employer may operate on a schedule not to exrceed forty-
eiht hours per week for each employee duringlb a period of cleasonalu
deand covering not more than six wreekis out of each su~ccessive\ six
mlon th-l' period.
2. a) ravelingr or outside salespeople, whether wholesa;l'e or
refai, executives, ~personal secretaries, and employees enlgaged in
manage~lrcIal or' -upern\sory (_lrapaciy, wTCho receive $35.00 or mnore~ per
wseeki; (c) fieldc service empll.loyees~, and outside collectors, shall nrot be
subject to any hlour~ly limitations.
3. In the event of emnergenr~i~cies endanerin g life or property, or
limiting production, employees e~n(;gaged in sa~fety, maintenance, or
replair w7ork shall be eexempt from all hourly9 limitations impo~-:ld by
this Article.
C. Nnne1( of the emnpfloyees covered by Section An or SuLbsectionr B-1l
of this Atrticle shall be lpermlitted~~ to warkl in excess of six: days~ in
any we~ek.
D. N'o emplllo)yer sha~ll krcnoingtly permit any empInvesI!L'. to work1
for anly timue which, wThen !-tol~ltad with that al~~reay perftormedl wFith
flnOi-her 1.;11.npl-,'r or emp~i3(loyers ('xceel'I the nuxilumnlrll oermittedl~

A. A~ll m~ale emp~tloyees covered by Subsectrion! 1. and 2 of rSc~tionl
A of Article III shall be paid not less than at thle rate of 4,0 cents
p~er hour, ::r.1 all female employees in such classes shall be paid
not le~ss than at the rate of 36 cenrts per hour; prov,\ided,~ however\t1,
that fain:le emnp2~3loys.- shall be paid at the same rates as mallel em-
p~loyees wh1en '.ngr.lgedl in similar occupa:tions;-; provided~t, further,
that I;laurners may be not less thaln 80'"- of --wh~l minimum wagerC
but the total numbelr of suchn learners shall not exceedi~ 5C;. of the
total number of employees covered by said Subsec~ctionsl 1 and 2
of Sc~ctio~n Ai of ASrticleA III employedl in process labor by su1Ch1
employer. No emplloy~ee shall be class~iftied as a I~learner for a period
longer than. three (3) months, in the Industry.
B. All office, cler~ilal and otherl employees as covered by Sulbsec-
tion 3 of Section A of Article III in the employ of any employer
shall be paid at the rate of not less than $5.00 per week, pro-
viled- that office boys or girls and Inlearners may be paid not less than
80%o of such minimum wage, but the total nrumrber of office boys and
gir~ls and learnmers receiving less than the minimum wage in, any
ca~lendalr~ month shall not exceeed 5i% of the total employees covered
by1 said Suterl:titrn 3 of Section A of Article III, or two employees,
Whierllee 18 111g~her.
C. All employees (except those' mentioned in Subsection (2 of
Section B of Article III), employed in excess of forty (40) hlour~s
in any one week, and eight (8) hours in. any one day, shall be paid


at thle rate of one. andl one third times their normalll r~ate of pay
for such excess: hourrs~.
D. Except that; watchm~en, truckers, and empllloyees in receiving
and shipping- derpartments shall1 for all hours~ in iexcess of f~orty-
four (44) hours in any one week be panid at the rate of one and
one third times their norman~l rate of pay for all such excess horl-l1-.
E. Equ~itabl~e adjustment in the pay schedules of all emp~ll\yc-;a
receiving morle thaln the minimlum~ wagei herein above providecd shall
be madnce not later tha;n thirty (30) days from. the teffc~ti\e (Iate;
provided, that. emplloyer! s who have not redulce~ paIy sch~eidules~ ;inrce
_OUctbe 1,19,ad r o aitiigequitablel pa~y schedlclec-
andl employers1 who have heretofore made equitable adljustonclt of
pay schlcllels, shall not be required to make adjustments of such
pa"Y schedulesIC- under this section; and providedl further, that in no
evenclt shall hourly rates of paly be redc11 edr- in makringll on.-h~l adjust-
Inen. E h empi~loyer shall writlhin sixty (60) days after the effective
date, reporcllt. to the Code Aluthority- all noctionl inkenl under t-his
section, including all unc~!e inl1craws madL~e since M~arch. 31, 1933.
F~. Th!is ;lrtic~le. establidwfll a minimum rate of pany reened~tless of
whelltherl or! not oIn employee is comp''"csarte on1 a timze rate, p~iece
ra:te, or other basis.
G. Canon Ill;.on sub ~-peol-ple, whether wholesale or I~re-fl11 not r~e-
ceiving~ a base :-!nry? or gwn-l~anteed conspenl.!-altlon s:~hall be e--: --p:1~
from all prov:\icians! of this Artiele.


A. Employees.~i shall have the right to open~:!i~r! andrl bar m!in~ col-
lectively through reprc-ll nad~li:i.cs of their own~1 chan..ngl~ ;1w: Shall
be free from the inkr Iferew-e, es l~traint.. or cmelr~cian~ of employers
of labor,!, orI their ;age!t-., in the <1,,-igla~tion of such repl:-rt!-!- abliI-
or in self-ol;igan x tion or in other concerted acetivities forl th~e purl~-
pose~( of co(.lllective. but~ mL:iningL or other mutullll aid or p~rotect1ion:
BZ. No~c emplollyee! and1 no onle Ieh!ing~ emp:loryme ntt salnl be requcl~ilt e
as a. condition of ;-!mpc.Jloynwnlt to join any (-ompall ny union or inl re-
framn from puningll. orga(-:nzi ng~. (1r n La~tingr a labor Cll';lnizatio~n of
h~is ow~n chooingjiib; andi
C. Empllloyers~ shall comrply w~ith~ the mlaximaum hours1~ of labor,
minimum~n ratesc of pany, andc other conditions of emp~~!l~loymentap-
provedt or Inc-':l-l:cribe by the Presidecnt.
D. N~o person undelr 16 yrea-rs of nee? shall be employedl~~~ in thle
'I~ndustry, nor anylone ulnderl 18 years of aget at o~perationsrl or occupa-
tions hlazardousli in Inatur'e or detrimentalf~l to hiealth.Te oe u
thor~it' shiall submit to the Admliniste~ntor w~ithlin thirty (30O) days
after the effcctive date a list of such oc~curpations. In any Sttate an1
emlployer .sall be dleemled to have compllied~ with this pr~ovision if
he shlall hav\e on file a certifients or permit, duly issuedrc by the? Au-
thority in sulch State emnpow~ered to issue employment or agve certtifi-
cates or p~ermits,, showin g that the employee is of the3 requIiredl age.
E. Within each State this Code shall not supersede any laws of suich
State im-posing more stringent requirements on employers, regulat-
ing the age of employees, wagnes, hours of work~, or health, fire, or
general wonrking co~nditions than under this Code.


Fi. Enilplc.v-erst shall not reclassify empyloyees~ or duties of occupa-
tions performeld b~y employees so as to defeat the purposes; of this
G. Each employer shall post in conspt~ic~uous~ pheces full copies of
this Code.
H. A person whose earning power is limlitedl because of physical
or mental defect, .age, or other infirmity may be employed on light
duty below the minimum wage set by thins Code, if the emnployerl ob-
t~iniu from thne State Authority dlesig~nated by the United States De-
partment of L~abor a certificate authorizing his emnploymnent at such
wngesr(1 and for such hours as shall be statedl in the certificate. LSuIch
Authority shall be guided by the instructions of the U~nitedl States
Department of Labor in. issuing certificates to such persons.
ART`ICLE VI-Aum )~IS Isnwr:\Iox

_A. T'he Executive Committee of the Association is hereby dsg
natedl as the Code Authority, to coopert1ne with the Admninistrantor in
admlinistering, supervising and promoting the performance of the
provisions of this Code by members of the Industry. N~o inequ~itable
res~trtic~tions upon membership in the ALssociation shall at any timne be
imexell. Thre Admin~ist mbrato may, if he so elects, appoint. nlot to
exced treenonotin meber ofthe Code Authority in addlitionl
to the Executive Committee.
BI~. MT~llember of the Industry who are complying withl the reqcuirec-
mnents of the Code, and who agree in writing either indi~vidually~ or
through trade assoc.iatio~ns of which they are members, to abide byr
the requirements of the Code and to pay their equitable and pro-
portiolnatehae of the expenses of th~e adminmistrationr thereof, as
determinedly by the Code Authority subject to the approval of the
Administrator, shall be enltitled' to participate in the Co-de activities
of the Code Authority.
C. In order that the Code Authority shall at all times be truly
r~el'''e'~"en tati ve of the Industry and in other respects comp~ly with
the prov"\ision, s of the Act, the! Administrator may pr~escrijbe such
hearings as he may deem proper, and thereafter if he shall fnin
that the Code Authority is not trulyi r~>1t~epresentati or does not. in
other respects comnply with the pr~ovsions of the Act, mnayr require
an appropriate modification. in thne method of selection of thle C`ode
D. The Code Aluthority shall, by the Act, have the duties and
powers provided for it inr this Code, subject to review and disap-
proval by the Administrator.
E. With a view to providing information for thle purpose of k~eep-
ing the President of the United States and thne Admlinistr~ator in-
formed as to thie observance or nonobservance of this Code, and as
to whether the Industry is taking appropriate steps to effectuate in
all r~espects the d~ec~larled policy of thne AIct, the Code Authority shall
make such reports as the Administrator may direct, per~iodicallyr, or
as often as requested, and each employer shall prepare, and file w~ithl
such person or organization as the Code Authority may designate,
andt at such times and in such mannner as mary be pr~escrilbed by the


Code Authtority, reports, statistics and such- other rclc\vant dlata or
information as the Code Authority mnay fromn time to timetr require.
F. Except, as othierwise provided~ in th~e Ac~t, all stati~ti~,cs, dta1 w1l~
inf~ormation filedl in acc~ordanllce wvcith the prvisiolns olf thiis ArL1tcle
shall be confidential and the statistics, data andl inlcl~l~foraionl of onel
emnploy~er shal not b~e r~evealed. to any other emllploer'l, except that
fori th~e purpose of admlinisterin g~ or enforc~ing thle 1"la-i.-ions of this
Code, the Codle. Authority, by its duly aulth-oitr ized representatives-c
(who shall not be employees o~f any13 emlol(y-er affected~ by this Cod,(~~
but may be a firm of certified public alccoulntrltant-, even though doing~
nudlitingr or necountinglc work for a~ny me~mbr~l of the Indurstry), and
the Ash~ninisitratocr, shall have nlece-s to any anrd all statistiCcs, data
and information that nl;ny be fulrnishled in neeudanllce~rr~. withl the proI-
visionsi of this Codelt.
G.~ In addition to informiiationi requliredl1 to be .-oliiiiftted to thle
Code Autlority, thec~re kill be furnished~ to golvernmentliil anciesi~r
such~ staltistical ili(,lnformtii o as the Adm~lin~iste~ntorI many deemr neces-
sal rl in thle purposes rlllitedl in Section 3 (a) of the _:lt; nor -hall1
any? ciithine~ in an cde reemnent, or license relieve any per'' of
anyl exiigolgtin to, fulrnish~ repor'ts to government :Il-ench .i~:
~H. If fo~rmlnl complaint is mialle to the Co-Toc Aulthor.ity tha:t thle
prov'\isIonsI of Ar1ticle VII of this Codle or of anly .-u11~Pph unint thlol'o
have ~e~eni vPiolatedl~ by anly emnploye-~r, the Code Authollrity, by~ its Il10<\
unrthnrizedI I''~repre~l en ile-,~ shall malket -uch! inn .-ti it~1Lion oflr the inl:;.,
as may be, deemed ncew nr-;~1y .
I. ThII. Code Anlth..r1ity- shall coop~erate writhi tl.l .~lluiniitrator in
regulatingr l th-e uwe of any X.Ri.A. ins~irrni: 1 -olelly 1,1 tliel memlbrr~s
o-f thle InllustryJc wiho have as.-cente~d to alnl tare compllyillg withn thlii
Annan(.! VII~--TRdDE: Pn.w( Tr.. E

A., The Code Aulthorit.y shall, within thir~ty (linr) IT,,- a-f~ter theI.
eff'cctive date, wtith thre apyprovaln of thle A2.sslc~iatlc~ion p:l.-cribe~r and/. or
approve~~' standarlld cost accounting prlced~ur~e and~( p1rinc-iplesl to be
followedl by all membu~l~ s of the Indcustry' in detelrmining~ thle cost of
manullfacturee dlistribu,~tion,, sale of' prodluc-ts. und. aIthnin~istration of
business, which, aftter approva\~l b~y the Admlrinist~ ;trator, shall be fol-
lowed by all memuber.- of the Inldustry, witth suc(h variations thecrec-
fr~om or xcleptionr s thereto as may be required~ by the I-:conitionsl.
affe~cting any individual mlemlber of the IndusrltrS andc as mlay- be ap-
provedl by the Codee Aulthor~ity. The Code A~uth~orityl shall, w~ith the
aIPproval1 of the A~dministrator, sp~ecify those items of co~st. etetr~mine d
pulrsuant to this Section, whichl shall be inlclud~ed in allowanble cost..
B. No m~emlber of the Industry shall sell or exchange any pr'oduc1~t
of his manufacture at a priet or uipon such terms or condl~itio~ns that
will result. inl t~he buy~er's paymigr for thle good-s rceived~ less than th
allowable cost to the miember of the Inldustr~yy, de~termlinedl in nee~ord-
ane with the uniformn and 6tandar~d method of cocstingr hlereinabo vee
pr'escr~ibed; provided, hlowever, that inventor~ies of finished prlodulcts,
which must be conv1erte into cashb to me~tet emnergency needs, dropped
lines, or seconds mlayr be disiposed of in such manner, and. onl such
terms and conditions, as thle Code Author~ity may approve andr as


are necessary to move such. pr~oduct into buyer's- hands; and further
provided that the Code ~Author~i-ty, upon application to itzmay grant
perm''i.4vic o to any mlember of the Indutry~t'3 to sell below cost in order
to meet existing~ competition on prodlc~ts of equrnle\;lnt design, char-
acter, quality~ or specifications. If the Code A~uthority shall refuse
approval as in this paragraph~l provided, or if the Code AiuthorityS
does not within ten (10) days from thne date of application, notify
the member of the Industry\ whlo app~llies for approval, of the decision
of the Code Authlority, such member may appeanl to the Admin-
C1. TPhe Code Authority shall continue its study of trade pra~c~ticcs
of the Industry and shall, with the approval of the Association, make
a;ny recommendations fromn time to time to the Admnillsttratr which
it cleemls desirable for modifications. or addition hereto, whichh, upon
the approval of the Admninistrator, after such heatrlling as he may
prescribe, shall become at part of this Code and have full force! and
effect as the provisions hereof.


A. W~hereas~I th~e policy of the Act to increase real pur~chasingl power~l
will be mnade impossible of cons.iummatioticn if prices of goods and
services increase as rapidly as wngles. it is recognized that price
ilcltntrease should be delayed, and that wIhen made the same should,
as far as reasonably possible, be limited to actual increases s in the
se'llrL''s costs.
B. This Code, exscet.y as to pr~ovisionls required by the Act, may
be mnodifiedl on the basis of experience or changes in circumnstanlces
suchll~ modification to be based upon application to thie Adlministr~a-
tor and such notice and hearing as he shall specify, and to become
effective on approval of the Administrator.
C'. No provision of this Code shall be so applied as to permliit
monopolies or monopolistic practices, or to eliminate, oppr~ess or
discriminate against small enleterpriss.
D. This Code and all the pr~ovisions thereof are expressly made
subject to the right of the Pr~esidlent, in accordance with the pro-
vision of slbs~c~tio~n (b) of Sec~tion 10 of thne National Indu~str~ial
Rec-overy~ ~Act, from time to time to cancel or m~odif~y any o~rder,
approval, license, rule or regulation issued under Tritle I of said
Act, and specifically, but without limitation, to the right of the
Pre-\idetnt to cancel or mnodif~y his apprloval of this Code, or any
condlitionls imposed by him upon his approval thereof.
Applrovedcr Code No. 317.
Rlgist ry No. 1629-1-01.

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