Code of fair competition for the china clay producing industry as approved on September 18, 1934


Material Information

Code of fair competition for the china clay producing industry as approved on September 18, 1934
Physical Description:
18 p. : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Kaolin mines and mining -- Law and legislation -- United States   ( lcsh )
Industries -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
"Approved Code No.520 ; Registry No.1013-11"

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004851272
oclc - 63655006
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Full Text



For sale bythe Ylperintendeat or Documents, Washington, D.C. - Pricesc5 enes

Approved Code No. 520

Registry No. 1013--11








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 No. 520



As Approved on September 18, 1934


;"PaonUCIwo INI)U~TRaw

An application having been duily made pursuant to and ini full
compliance with the provisions of Title I of the Nationtal Inldustrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the China Clay Producing Industry, and hear-
ings having been duly held thereon and the annexed report on said
Code, containing findings writ~h respect thereto, having been made
and directed to the President:
NOWr, THEREFORE, on behalf of the President of the Ulnited
St~at~es, I, Hugh S. Johnson, Admlinistrator for Industrial Recovery,
pursuant to authority vested in me! by Executive Orders of the Presi-
dent, including Executive Order Njo. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate: by reference said an-
nexed report and do find that said Clode complies ini all respects
with the pertinent provisions and will promote thie 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 approvPed.
Howa S. JoHNSON,
Adminisctrator forl Inldustrial Recov~ery.
Approval recommended :
C. E. ADaurs,
Division Adm~inistoratr
September 18, 1934.
86452 "--1181-67--34 /11\


The Wthite Htouse.
SmR: The original Code of Fair Com~petition. for the China Clay
Producing Industry wras submitted by the Southern China Clay
Producers Association, the name of which was subsequently changed
to China Clay Producers Association, on September 29th, 1933. The
China Clay Pr-oducers Association is an unincorporated membership
society ohrganized in 1933 representing in excess of 90%0 of the known
members of Industry and in volume of production.
Several revisions of the Code were made prior to the public hear-
ing which wast held on December 13th, 1933. The Code was revised
during thne recess of this hearing and was submitted in its final form
for approval. Every person who requested an appearance was
properly- heard in accordance with statutory and regulatory require-
The China Clay Industry as outlined in this Code embraces the
mining and/or producing of China Clay and the original sale, in-
cluding sales on consignment, where permitted in the U~nited States,
of Chmna Clay by the Mdember of IndustryT producing the same
directly or indirectly either by himself or his agent, which includes
without limitation any person or corporation occupying a subsidiary
or controlling relationship or one of common, mutual or joint owner-
ship, or control to a lemberr of Industry.
The~ term "L China Clay means a kaolinitic clay (a type of clay
composed essentially of hydlrous silicates and alumina containing a
very lowT percentage of fluxing impurities) which~ is suitable for u~se
in the manufacture of pottery, porcelain, and other cernlmic products
and as a filler or coater in thne p~aper`, rubber,? paint and other

T'he China Clay Industry in the United States is of rcla ti vely recent
development. Prior to 1900 approximately 90%r ojf the Chiina. Clay3
usedc~ in the Un~ited States was imported from Engilandi. During the
period 1900 to 1914 there was a marked delvellopment of thle Indu~stry~
in the United States-1,500 tons were produlced~ in 1914. On account
of the difficulty of securing China Clay from Englannd during thfe
W~ar the development wa~s most marked. Today alpproximately 70%:'
of the China Clay used in this country~ is of domestic origin, the
rem~aining 30ro is imported from E~ngland. Seven hlundr~ed and
fourteen thlouisand tons representing 90% of the pr~oductive enpacity
of the United States is produced bly fourteen members of the Chinaz
Clay Producers Atssociation. At the present time their. output has
decreased to about 42%0 of capacity. In 1982 three hulndred andt
sixty)-five thousand tons were produced valued at $2.943,000)C, r~epre-
senting about 40% of all types of clay produced in the UTnited Staltes
hath(l as to tonnae and value.
The productive capacity of this Indlustr~y, wphich has a capital in-
v-estment of $4,1_00,000, is very narrowonly confined in a fewv Southlern

States. Approximately 55%~ of such capacity is located in Georgin,
27%4 in South Carolina, 9C.' in F'loridaz andl most of the remnaining
9% in North Carolina and V irginia. Pits are also wcrkledl inl Cali-
fornia, M~issouri, Pennsylva~nia and \-ermont.
The uses to ~hichi domlestic China Clay is now put have been
9reatly inc~r~esedl over thle past few- venr~s thorough~ t.hle re~search efforts
of the 'various producers. Its principal use is as a filler for paper, fol-
lowedl by its use in thle mannufact~ure of white-b.odtied. wnare, cemenclt,
rubber, paper conting,r liice-brick and block, high grade tile, oilcloth or
linoleum and paint filler or ext~endler. China Clay is also employed in
t~he manufacture of a rtificia1 l arasivecs, crayons! chiemicals, galasshouse
supplies, clay crucibles, art. pottery', etc.
WVhile there are domestic products which complete wSith china clay,
such as calciuml sulphate (gypsum), calcium carbonate (whiting),
talc and other white pigments, the Industry's chief concern is with
the competition of impor~ted china clay~.
Aside from the mor~e legitimate comp~etitive problems of the
Industry are those specifiedlyl related to unfair trade practices within
thle Industiry, such as '' bid peddlling r", I' bidl chiseling ", defamation
of a completitor and false representation~s, all of which hav~e debili-
tated the Industr~y with their v.iciousne~ss to a degree wFchere ruthless
amputation from the industry is advisedl.
As previouslyv indicated, there is a2 productive capacity of more
t~han tl14,000 tons per annum in this Industry, fully sufficient to enre
for the entire American consumption under prosperous conditions.
Today tihe Industryv is working at. 42% of capacity~.
The immediate future of this Industry is largely predicated upon
the potential increase in demandl for its products; ~its ability to
absorb the increased labor costs incident to the proposed Code, and
the possible furthl~er encroachlmen t of the foreign producer upon the
domestic producer's present market, as well as increasing competi-
tion fromn other domestic products.
There are two important limitations on the extent to which the
price of china clay may be raised. In the first place the price: of the
clay for one of its major~ uses, paper. filler, is limited by the cost of-
recovery of what is at present, a by-prodluct of the F~ertilizer Industry,
namnely calcium sulphate (gypsum).: which is largely a waste product
but which can be, and sometimes is, used as a substitute for china
clay when the price of the latter groes too high. In the second pla8ce,
competition with foreign china clay. eve~n undcer present conditions, is
still keen and would doubtless be increased by any appreciable rise
in the price of china clay.
Under the present Codle hours employment should be afforded to
about 250 additional employees. The minimum hourly rate has been
increased substantially from the previously low rate in 1_933 of 100
per hour extant prior to August 15, 1033, or $4.80 per weeke of 48
hours. In September the rate was increased to 15t. Under the pro-
posed Code the minimum rate for the South is 244 per hour, or $9.60
for a 40 hour week. All of this is in comparison with a 65 hour week
at 200 per hour in 1929.
The Code rate for the South is representative of an average clondi-
tion in the Induistry inasmuich as approxi ma telyr 907c of the Industry
is located in the South. The higher Code rate for the North wvould

only apply to a relatively small section of the Industry scattered
through a number of widely separated states, but would, of course,
sonmewhat increase the total wage rate in thne Code.
ARTICLE ]I. States the purpose of the Code.
ARTICLE II. Accurately defines specific terms applicable to the
China Clay Producing Industry.
AtlRTICLE III. The maximum hours are limited to 40 hours per
week, or eight hours per day in any 24 hour period except as other-
wise provided for. In order to meet adverse conditions of produc-
tion due to seasonal inclement weather, employees engaged in open
pit (mining) shall be permitted to work an average of 40 hours per
week in any four or five week period that shall correspond as near
as may be to the calendar month, with a maximum of 48 hours in. any
ceven-day period; provided, however, that at least one and one-half
times his regular wage rate for any employee so employed shall be
paid for all hours worked in excess of 40 hours in any sevenl-day
period. W'5atchmen may be permitted to work: 56 hours in any seven-
day period; provided, that such employees shall have at least one
day's rest in each. seven-day period. No clerical or o~ffce employee
shall be permitted to work in excess of 40 hours per week averaged
over a fi~ve-week period nor more than 48 hours in any one week.
Executives or those employed in supervisory capacities or in technnical
work who are paid not less than at the rate of $30.00 per week in
the Southern Zone or $35.00 per week in the N);orthern Zone, are not
subject to hourly limitations. The maximum hours shall not apply
to employees engaged in emergency maintenance or emergency repair
ARTICLE IVT. TIhe minimum wage for employees in the processing
of products or any labor incident thereto shall be 240 per hour in
the Southern Zone and 35tt per hour in the Northern Zone. No
person employed in clerical or office work shall be paid less tha~n at
the rate of $15.00 per week except that office boys and girls and
messengers may be paid at a rate of not less than 80%0 of the mi nimnum
paid to office employees. The established minimum rate of pay for
work performed in any pay period shall apply irrespective of
whether an employee is actually compensated on. a time-rate, piece-
work or other basis. Provision is also made for the employing of
handicapped persons.
ARTICLE V.. This Atlrticle provides that no person. under 18 years
of age shall' be employed in the Industry except in specific opera-
tions and no person under 16 years of age shall be any
capacity. This Alrticle also sets forthf mandatory provisions respect-
ing the rights of employees to organize and bargain collectively.
This Article also provides for matters having to do with reclassifi-
cation of employees, standards for safety and health, the observance
of state laws, thne posting of complete copies of this Code, company
towns and stores and dismissal for complaint.
ARTICLE VI. Establishes a Code Authiority consisting of seven
voting members together with Administrator members to administer
t~he pro-visions of this Code. This Article also provides for powers
and duties of the Code Authority.
ARTICLE VII. Sets forth the marketing and trade practice rules
for the Industry.

ARTICE VTIII. Makes provision for recommendation to the Ad-
ministrat~or by thne Code Atuthor~ity of matters' having to do with
new ca p~taty.
ARTICLE IX. Makes provision for Export Tradle.
ARTICLE S. nla BS provision for modification of the Code.
ARTICLE XI. Makes p~rov'ision for registration of M~embers o~f the
Ind ustry.
ARTICLE 111'. PJO p~rov.iSion of this Code shall be so applied as to
promote mronopolies or monopolistic pranctices or to eliminate, op)-
p~ress or dliscr~iminate against. small enterprises.
ARTICLE XII[I. Makes provision for the ter~mination of the Code.
ARTICLE SI1?. COvers th4e effective date.
The Depulty Admlinist~ator in his final report to me on said Code
having found as herein set forth and on. the basis of all the pro-
ceedings in th-is matter:
I find thlat:
(a) Said Code is well dlesigbEnedl to promote the policies and p~ur-
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 o~f In-
dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and management
under adequate gaover~nmental sanctions and supler~vision, by elim~inat-
ing unfair competitive practices, by promiotingr the fulles-t possible
utilization of the present productive capacity of Industries, by av~oid-
ing undue restriction of production (except as may be temporarily
required), by increasing t~he consumption of industrial and agri-
cultural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, andl
by otherwise rehabilitating Industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classifiedl by me as a major Industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, 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-
ciation is an Industrial Association truly representative of the afore-
said Industry; and that said Association imposes no inequitable rec--
strictions on admission to membership therein.
(d) The Code is not designed to and will not peri monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, this Code has been approved.
Hcan S. JoHNSON,
SEPT. 18, 193;1.



To effectuate the policies of Title I of the National Industrial
Recovery Act, this Cobde is established as a Code of F'air Compet.i-
t~ion for the Chrina Clay Producing Industry and its provisions shall
be the standards of fair competition for such Industryr and be bind-
ing upon every member thereof.

Wherever used in this Code or any supplement appertaining
thereto, the terms enumerated in this Article shall have the mean-
ings herein defined, unless the context shall otherwise clearly
S~ECTION 1. The term President means the President of the
United States of America.
SECTION 2. The term "Act "' means Title I: of the National Indus-
trial Recovery Act.
SECTION 3. The term. "Administrator means the Administrator
for Industrial Recovery.
SECTION 4. The term "~ China Clay Producing Industr~y" or In-
dustry as used herein includes the mining and/or producing of
China Clayr and the original sale includingg sales on consignment
where permitted) in the United States, of China Clay by the ~emn-
ber of Industry producing the same directly or indirectly either by
himself or his agent, which includes without limitation any person
or corporation occupying a subsidiary or controlling relationsh~ip- or
one of common, mutual, or joint ownership, or control to a1 M~ember
of Industry
SECTION 5. TChe termn China Clay as used herein mesns a kano-
linitic clay (a type of clay composed essentially of hydrous silicates
and alumina containing a very low percentage of fluxing impurities)
which is suitable for use in the manufacture of pottery, porce~lain,
and other ceramic products and as a filler. or coater in the paper,
rubber, paint and other industries.
SCEemsT~ 6. T~he term "L Mbember of I~ndustry includes, but with-
out limitation, any individual, partnership, association, corp~loration
or other form of enterprise engaged in the Industry, either as an
employer or on his or its own behalf.
SjECTION ?. T'he term ~"Employee means and includes anyone
enlgaged in the Industry in any capacity receiving comlpensation for
his service irrespective of the nature or method of payment of such
comipensationl, except a M~lember of the Industry.

SECTION 8. The terlm Emlployetr" "meanls anyone by~ whlom anly
such employee is employedc or compensated.
SECTION '3. The term Houlthern Zo~ne "' as used hnerein sh-all include
the States of Alabamln, Arklnnlvas,, Flor~id~, Geoirgia, Louisiana, ~Mis-
sissippi, Soulth Caro~linla, North Carolins ulnd Virginia.
SECTION 10). Th'1e term "' Northern~l Zone "' as ulied herein1 shall in-
cludle all1 other territory of the Unlited~ States, exrcep~t as defined in
"L Soutfhernl Zone."
SEC'TIOiN 11. The, term "L Aissc~iatio nl shaill mean the China Clay
Produlcers Association, a -voluntary uninorplo ratiedl association.
SIECITION. 12. The term Executive Committee shall mean, thec
Executive Commlitteee of the Association.
SECTION 13. The term "L Setcretary "' shall mean. th~e Secretary of
thle Code Authority, vlc, h shall also be the S~ec~retaryS of the A~ssocia-

SECTION i. 2K###0172r & iOtbr8.---No employee shall be perm~itted to
wor inexcss f frty(40) hours per week or eight (8) hours in
any tw~enty-four (24)hurproeep sheinthriero
(a) Emplloyees engaged~r in open pit (mining) shall be per~mitted'
to wor~k an avrerage of ~forty (40) hours per week in any four or
fiv~e-week period that shall correspond as near as may be to the enlenl-
dar month, with a mnaximumn of forty-eight (48) hours in any seven-
day period; pr~ovid~edl however that at least one and one-half times
his regular wage rate for any employees so employed shall be paid
for all h~our~s wTorkled in excess of forty (40) hours in any seven-day
(b) Emiployees engaged as watchmeen may be permittedl to work
not more than fifty-six (56) hours in aniy one seven-day periiod, nor
more than six (G) days in any seve~icn-da perriod.
SECTION 2. Hours fol C'ler'icacrl andc Office KF7nploYers;d-- N~o cler~ical2
or office emlploee: shall be permitted to work in excess of forty- (40)
hours per week, prlov'ided that in one (1) week of each five (5) week:
period any s~uch emlployeee mayn b~e permitted to workl not in, exce~s
of forty-eigiht (48) h~our~s; prov~idedl further, that in no sulch five (5)
week period shall anyq emnployree be p~ermitted to work in excess of
an average of forty (40) hours per w\eek.
SECTION 3. Exuception~s a~s to Houlrs.-TZhe~ provisions of this Article
shall not apply to outside salesmien, or to employees engaged in emer-
gency maintenance or emergency r~epair w-ork; prov~idedl, however,
that at least one andi one-half times thie regular' wage ra~te for anly
employee so employed shall be paidl in such emiergency maintenance
or emergency repair work for all hours worked in excess of the. masi-
mum hours hereinbefore provided; nor to executives or those em-
ployed in supervisor capacities or in technical worke who are~ paidl
not less than at the rate of Thir~ty Dollars ($30.00) per w-eekr in thle
Southern Zone or Thirty-Five Dollars ($35.00) per week: in the
Northern Zone.
SECTION 4. StandlarL Wleek.--No employees shall be permnitted to
work more than six (6) days in any seven (7) day period.
88642 D---115181-67-34 2

SECTION 5. E'mploymenPlt by Severl' n Emp~loyer)s.--No employer
shall knowingly permit any employee to workr for any time which,
wphen totalledl withn that already performed~: wvith. another employers
or employers in this Indus~ltry3 or others tradeste or industries, exceeds
the maxnir nnon perml~ittedl herein.

SECTION 1. Minillevn Wnages.--Except as oth~erwTise herein pro-
Pided no emp~loye~e shall1 be paid in any pay periodc less than at the
rate of Twenty-four (24) cents per hou~lr in the Southern IZone, nor
less th~an at the rate of Thir~ty-five (35) cents pier hour ir the
NIJorthern Zone.
SECTION 2. Olerical andc Office Em p7olayees.-Noo clerical or office
employee shall be paid less than at the ra~te of FIiifteen Dollars
($15.00) per' weetk; providedc, howe~ve-5tr, that office boys and girls and
messengers may7 be paid not less than at a rate of 80%r of the~
mlinillnn here~ilnabove specified, and provided fur~ther that the numa-
ber of such boys andl girls andi mes~senge~rs so paRid shall cons~titute not
more than 5%0 of th~e total number of sue ch employees of anly one
office of anyv one employer, but in any case each employer shall be
eintitledl to employ one such employee.
SECTION 3. 2Pi~cCElork CGnp~yensti~oni-Minimum rl Wages.-Thisi
Article establishes a mIlinimlum rate of pay for any pay period which
shall apply, irrespective of whether an emnployeet is actually com~-
pensanted on a time-rante, piecew~ork, or other basis.
SIECTION 4. WaCTCges Above the Mli~nim~umn.--A~d jusltmnt of wages,
with :respect, to wrages above thie minimum, shall be made wTithin
thirty (30) days after the effective date of this Codetr by each. e~-
ployer who hzas not heretofore made such adjustment. Such adljust-
mnent sha~ll mean the masi~lcnt llen of a dlifflleretial at least as great
in amount as that existing on June 16, 1933, b~etween the wage rates
for such employment andr the then muinimnn. In no event, however,
shall hlourly rates be reduced in masking such adjustmnents; WSit~hin
sixrty (60) days after thne effective dater of this Code each Memllber of
the Industryy shall make~ a retpor~t of such. adjustmnlc t whether made
prior to or subseqeclcnt to the dcate. of approval. of this Codee to the
Code Authority.
SECTION 5. Paslment'if of WagF;eS.-En~ch employer sha1.llmake pay-
menit of all wrages in lawmful currency, or by negrot~iable c~heek' therefore,
payable! on demand. These~ wages shall be exempt fromt anyT deduct-
tionss other than those expressly authorizeda by\ an emlployee or r~e-
quired b0y law. Pay periods for wagres shall be at no greater interval
than every semlimaonth,, and salaries at no gireaterr interval thann every
mlonthl. No emlployer shall wit~hbold w\ages except. as otherwise
providedl~ by lawJp.
SEC'TION 6. Handrl!-; i~pcappe Person.:~.-A perso-~~n whose learning
capacity is limited brcaurse of nge, physricall or m~entn I handicap, or
other infirmity, mlay be emp~loy~ed on. lihtrlf w~o~rk at c a wage below the
mlinimumlll eStabllishedI by this Code if th~e employer obtains fromt the
State Authority, de~siglnated by'3 the United States D~epartmuent of
Labor, a cer'ltificaltte authorizing suc~h person's employment at such
wages and for such hours as shall be statedl in thie cer~tificate. Such

Authority shall be guidedc by the ins-tructions of thle Unitedl States
Department of Labor in issulinf ceCrtifica:teS to) such personsc. Eanch
employer shall file with the Code Au11,thorty and k~eep current, a list
of all sulch persons emplloyred by him~o, shoing\rl the wages paidl to and
the maximnum hlourls of w7orks for sulch employee.~c
SCECTION 7. Contra~cts for' Performanci 2;f' TT'ork.--No employer
sha~~ll contrnet work~ to be dlone except when thle person performningr
the contract agrees to be bound by the provisions of this Cod~e or the
Code adopted~ for the Industry cov\erinlg such wocrkl; and in no case
shall an employer av~oid~ or evade thle In~lab r provisions of this Code
by contrac~ting his work! to any person subject to labor regulations
less stringent than those pov~ictd d in this Code.

SECTION 1. Chldj~ Labor.--No person ulnercl eighteen (118) years of
age shall be employed in the Indulstry, except in clerical, office, sales,
service, technical and engineel~ring department~lt oiffic~e duties, and no
person under ~~sfixtn (16f) years of agei s~halll be emp~lloyed( inl any~
ca.pacit~y. In any S~tate. an emplloyerl shall be dlleeme to have com-
plied with this provu\ision as to age if he .-hall have on file a certifiente~f
dulyr signed by the Authlority of sulchl S~tate e~mpoweredC to issue emn-
piloyment or age certificates or permlits, showing that thle employee
is of the reqluirel nage.
SECTION 2. Pi'OUiSiOlr8 Of the Aict.--(a) Emp~loyee~s shall have the
r~ight to organlize andt bargain collectively thl~rough r~illepresenttaties of
their own c~hoosingr, and shall be free from thte inlterferenc~e, rcstrainlt,
or coercion ofE employers o-f labor, or their agents, in thie dlesination
of such rep~resentativecs or in self-organization or in other conlcerted
activities for the purpose of collective bargaining or other mutual
aid or protection.
(b) No employees and no one seeking emp~loymeniit shall be re-
quire~d as nI condition of employmlent to join alny company union
or .0 re rain f romn joining, olrga~nrizing, or assistingr a labor orgumi'za-
tion of his ow-n choosing, and
(c) Em~ployerss shall comp~lyv with the maximum hours of laborl,
minimum rates of pay, and~ other conditions of empIloyment appr~ove~d
or prescribed byS th~e President..
SECTION 3. RP'Clc3~/Ojsif'tion1 of E p~loyTO s.-NR, o emPplt~oyer shall re-
classify employees or duties of occupations performed, or engrage
in~ any other subterfuge for thie purpose of dlefeatingf the pu~rposies
or pr1ovisions of the Act or of thiis Codie.
SECTION 4. SfI1/CUinS~ d of &znfet!j anld Health.--E very employer
shall prov-ide for the safety and h~ealth~ of hris emlployees at the
place and duringY the hours of th~eir employment Standardc's of
safety and health for each division of the Inidustry~ shiall be sub-
mitted to the Adlministratori by th~e Code Authority within threce (3)
months after approval of this Code.
SECTIrON e. IState Lawcs.--No provision in this Code shall superrsede
any State or F~ederail law which~ imposes on emlployersi mnore stringent
requlireme~ntnt as to age of mprnloyepes wages, hours of work, or as to
safety, health~, sanitary or general working conditions, or insurance
or fire protection, thanl ar~e imposed byr th~is Codet.

~SECTIION 6. iPosting l---All employers shall post and keep posted
compllet~e copies of this Code and all amendments thereto in con-
splelUou~s p~laces~ accessible to emploeei;, and shall comply with all
rules and regu-~laltions; rela~ti~ve to posting which miay fr~om time t~o
time be p~rescribed by thec Admlinistra:tor.
SE(.TIIN 7. Com~p~ary T'owns andlt Stores.~.--E employee other than
mal~inltnnClll e or supIer'visory men'l, or those nece-ssary to protect prop-
erty, shlln1 not be required as a condition of employment, to livie in
houses rented from or specifiedl by the employer. No employee shall
be required, as a condition of employmllent, to trade at a store owned~r
or spe~cified boy an employer.
SeCT(No 8. DiZSmi'ssacl for Complal~int.--No employer shall d~ismiss
or demote. any employee for making a complaint or giigeiec
it;lh respeclFl~t, t an nilegedC' violation of this Code.


SECTION 1. Organ!ii mT!i onZ and Constitution.--A Code Aulthlor~ity to
administer this Code is hereby constit-uted, and shall consist of sixu
(6) voting members who shall be selected by and who may be mlem-
berls of the Executive Commnittee of the Association, and one (1)
other voting member w~ho shall be a Memnber of Industry and shall
be selected byr the Membllers of Indusltr~y who are not mem~er~s of the
Association. TIhe selectionl of all members to the Code Aulthority
shanll be by a fair and equitable m~eth~od of election to be approved
by the Adlministrator. In the event that the selection of the Asso-
ciation's non-member representative on the Code Authorityr is not
made within thirty (30) days after the effective date of this Code
such member may be selected by the Administrator.
SEC'TIONr 2. IR Otl~llif lOn to the above mnembersh~ip there may be niot
more than three (3) members without vote and without compensa-
tion by the Industry, appointed by the Administrator to serve for
such terms as he may specify..
SECTION 3. Each trade or industrial association directly or indc-i-
rectly participating in the selection or activities of the Codle Aluthor-
ity shall: (1) impose no inequitable restrictions on membership, and
(2) submit to the Atdmnliistrantor true copies of its A~rticles of Associ-
ation, By-Laws, Rules and ]Regulations and; any amendments w~hen
made thereto, together with such other information as to mnember-
ship, organization, and activities as the Administrator may' deem
.necetssa~ry to effectuate the purposes of the Act.
SECTION 4. In order that the Code Authority shall at all1 times be
truly representative of the Industry and in other r~espect~s comply
with the provisions of the Act, the Adm~inistrator may prescribe suchl
hearings as he maay deem proper; and there fter if hie shall Sind that
any Code Authority or sub-Code ~Authority~ is not truly repr~esent~a-
tive or does not in other respects comply wilth, the pr~ovisions of t.hle
Act, may require an app~ropriate modification in the method of
selection of such Code Authority.
SECTION 5. NPioth~ing contained in this Code shall constitute the
members of the Code Authority partner's for any purpose ; nor shall
anyT members of the Code Authority 'be liable in any manner to any-

one for any act of any other member, offcer, agent or emplloyee of
the Code Authority; nor shall any memberl of the Codle Authority ex-
ercising reasonable diligence in the conduct of his duties hler~eun c e~r,
be liable to anyone for any action or omission to act under this Codel,
except for his own wilful maulfeasance or nonifeasance..
SEC;TION 6. PO~er&S andl D~uties.--SubLj ~ct~ to such rules and regu-
lations as may be issued by the Adm~cinistrator, andr to th]e exrtent
permitted by the Act, the Code Authority shall have the following~
further p~owers anld duties:
(a) To makte investigations as to the functioning anrd observance
of any provisions of this Code at its own instance or upon complaints
of any' person affectedl an~d to report thereon to the Aidministrator.
(b) TIo insure the execution of the provisio~ns of this Code and to
provide for the comnpliance of the Industry with the provisions of
the Act.
(c) To adopt By-Laws rand Rules and Regulations for its pro-
cedure and for the administration of this Code. TLhe Code Authority
shall promptly furnish to the Administrator for his approval true
copies of the By-L~aws, ,Rules and Regulations, and all amendments
thereto, adopted pursuant to this paragraph.
(d) Tro obtain from Mfembers of the Industry, through a confi-.
dential agent, such information and reports as are required for the
administraRtion of this Code. In addition to information required
to be submnittedl to the Code Authority-, MIembers of the Industry
subject to this Cod Admlinistrator may deem necessary for the purposes recited in
Section 3 (rt) of the Act to such Federal and State agencies as he
mlay designate; proviedl, that nothing in this Crode shall relieve any
Member of the Industry of any existing obligations to furnish re-
p-orts to any G~overmlllnet agency. No individual report shall be dis-
closed to any other Rlemiber of the Industry or any other party except
to such other go~ver~nmentall agencies as miay be directed by the~
Ad m inist ra tor.
(e) To use suich trade associations and other agencies as it deems.
proper for t~he carrying out of any of its activities provided for
herein ; provided, that niothiing herein shall relieve the Code Author-.
ity of its duties or responsibilities under this Code and that such.
trade associations annl agencies shall at all times be subject to and
comiply with thle p~rovisionis hereot.
(f) To make r~ecommentndations to the Adlministrator for the co-
ordination of the administtration of this Code w~ith such other Codes,
if anly, as may be related to the Industry.
(g) To mak~e recommendations to the Ad~ministrator for t~he
Amendment. or miodification of this Code on the basis of experience
and changes in circumnstan ces, andl to make recommlentdations (but
without limiitation) reclative to (1) further fair trade p~ractice pro-
visions to govern RIlembrs of the Indlustry in their relations wvithi
each other or withh others Industries, and (2) measures for industrial
planningr including callingr of meetings of 1\enlemers of thre Indlustry
to consider control of production through voluntary agreement,
stabilization of employment and conservation of natural resources,
and (3) prevention of the elimination or oppression of and dis-
crimination against small enterprises, and (4) prevention of unfair,

or destrucltive p~rnetices, and (5) rehabilitation of industry, which
r~ecorlll~nluendaio n, upon approval by the Administra~tor after such
notice and hearn~ing as he may prescribe shall become part, oft this
Code~1 and havef full force and eff'ec~t as provisions hereof as outlined
in Article Xi, Section 4.
(h) TIo inv::t igate and inform thze Administrator on behalf of
the Industry as to importation, of competitive ar~tic~les into the United
States in substantial quantities or increasingr ratio to domestic pro-
duction on. such terms or under such conditions as to recnder ineffee-
t~ive or se~r~iously e~nlanrger the maintenance of this Code, and to makre
complaint to the Ptresident on behalf of the Industry under the provi-
sions of Section 3 (e) of the National Inldustrial Recovery Act with-
respc.~'ct thereto.
(i) T~o engage the services of a confidential and disinterested agent
to inspect the books and records of any Member of Industry against
whom complaint for an alleged violation of this Code has been made
and accepted byT the Code Authority. In case such an inspection is
ordered, such. Member of Industry shall open his books and records
to inspection by such agent as to all matters which may be pertinent
to the allegation, upon the express condition that such inspection be
In ase onsu ;Lch n~ls:;Ypaection indicates a. violation of this Code has not get
been committed the agent shall report that fact to the Code AQuthor-
ity without further details.
`In case such inspection indicates a violation, of this C~ode has been
committed the agent shall make a full report of such violation onlyj-
to the Code Authority and to th~e Administrator.
SECTION. 7. It being found necessary to support the administration
of this Code in order to maintain the standaLrds of fair competition
established by this Code and to effectuate the policy of the Act, the
Code Aiuthority is authorized: (1) To incur such r'easonab~le obli-
gationls as are necessary and proper for the foregoing purposes and
to meet such obligations out of funds which may be raised as here-
inafter provided and which shall be held in trust for the purposes
of this Code!: (2) To submiit to th~e Administrator for his approval,
subject to such notice and opportunity to be heard as he may deem
necessary, (a) an itemized budget of its estimated expenses for the
foregoing purposes, and (b) an equitable basis upon which the funds
necessary to support such budget shall be contributed by M~emlber~s
of the Industry: (3) After such budget and basis of contribution
have bee~n. approved by the Admninistrator, to determine and secure
equitable contribution as above set forth by all such M1embers of
the Industry, and to that end, if necessary, to institute legal pro-
ceedings therefore in its owpn. name.
SECTION 8. 1Each Member of the Industry shall pay his or its
equitable contribution to the epne ftemitnneo h
CodeAutorit, dtermnedas ereinabove provided, and subject
to rules and regrulations pertaining thereto issued by the Adminis-
trator. Only M~embers of the Industry complying with the Code and
contrbuting to the expenses of its administration as hereinabove pro-
vided, (unless duly ex~em~pted fromr making such contributions,) shall
be entitled to participate! in the selection of mlemlbers of the Code

Authority or to receive the benefits of any of its voluntary activities
or to make use of any emnblem or insignia ofe the National Rtecovery
AIdminist ration.
SECTION 9. The Code Authorit~y shall neither incur nor pay any
obligation substantially in excess of the amount thereof as estimated
in its approved budget, and shall in no event exceed the total amount
continued in t~he? allnpprove budget, except upon alpprovanl of the Ad-
mninistrator; and no sub=.e~quent budget shall contain any cleficiency)
itetm for expenditur~es in excess of prior budget estimates ex~ept
those which the Aldministrator shall have so approved.
SECTON 10. If the Administrator shall determine that any act lon
of the Code Authfority or anyS agency thereof may be unfair or un-
just or conltraryr to the. public interest, the Administrator may require
that such. action be suspended to afford an opportunity for inv\esti-
gation of the merits of such action and further consideration by
such Code Authority or agency pending final action which shall not
be eflFective unless the Administrator approves, or unless he shall
fail to disapprove after thirty (30) days notice to him of intentionl
to proceed with such action in its original or modified form.
SECTION 11. The Code Aulthoritly shall cause to be formulated
methods of cost findings and accounting capable of use by a l~lMem-
bers of the Industry, and shalll submit such mlethodls to the Adminis-
trator for review. If approved by the A~dmiinistrator full informna-
tion concerning such m~ethtods shall be made available to all M~embers
of the Industry. Thlereafter, each Miember of the Industry shall
utilize such methods to the extent found practicable. Nothing
herein contained shall be construed to permit the Code Authority,
any agent thereof, or any M~ember of the Industry to sugg~est uni-
form additions, percentages or differentials or other uniform items
of cost which are desiigned to bring about arbitrary uniformity of
costs or prices.

SECTION 1. EachI Meltmier of the Industry shall file with a co~nf-
dential and disinterested agent of the Code Authority or, if none,
then with suIch an agent designated by the Administr~ator, identified
lists of all of his prices, discounts, rebates, allowannces, and all
other terms or conditions of sale, hnereinaftr in this Article referred
to as "' price terms ", which lists shall completely and acenlrately con-
form to and represent thle individual p~ric~ingr p!ac~tices of said memb-
ber. Such lists shall contain the price terms :for all such, standard
products of the Indlustry as are sold or offered for sale by said me-
ber and for such non-standard products of said member as shall be
designated by the C'ode Authority. Said price terms shall in the
first instance be filed within ten (10) days after the effective date
of this Code. Price terms and revised price terms shall become
effective immediately upon receipt thereof by said agent. Im~medi-
ately upon receipt thereof, said agent shall by telegraph or other
equally prompt means notify said member of the time of such
receipt. Such lists and revisions, together with the effective time
thereof, shall upon receipt be immediately and simultaneously dis-

tribulted to all M\em~bers of thne Industry and to all of their customers
who have applied therefore and have offered to defray the cost ac-
tually inculrr1ed by the Code Authority in the preparation and dis-
tribution thereof and be av-ailable for inspection byS any of their
c~ustomers1 at the office of such agent. Said lists or revrisions or any
p~art thereof shall not be made available to any person re-
leased~t to all Memllbersi of the Industry and their customers, as afor~e-
said; provided, that prices filed in the Birst instance shall not be
released untlil the expirationl of the aforesaid ten (10)) day! period
alfter the approval of this Code. TIlhe Code Authority shalR1 l min-
t~ain. a lclralerm nent file of all price terms filed as herein providedl, and
shall not destroy any part of such recordc~s except uponI written con-
sent of thie Administrator. U~pon request the Code Authority shall
furnish to the Admninistrator or anyr duly designated agent of the
Administrator copies of anyT such lists or revisions of price terms.
(a) When any Member of the Industry has filed any revision, such
member shall not file a higher price ~within forty-eighlt (48) hours.
(b}, No Mem~ber of the Industry shall sell or offer to sell any
products of the I~ndustry, for which, price terms have been filed pur-
suant to thne provisions of this ALrticle, except in accordance with
such price terms.
(c) No Member of the Industry shall eriter into any agreement,
understanding, combination or conspiracy to fix or maintain price
terms, nor cause or attempIt to cause any Member of the Industry to
channge his price terms by the use of intimidation, coercion, or any
other influence inconsistent with the maintenance~ of the free and
open market which. it is the purpose of this Article to cr~eate.
(d) The Code Authority may prescribe rules and regulations pIro-
viding for the sale of by-products or distress merchandise, surplus
inventories, products not up to specification, and to meet the compe-
tition of other materials competitive with the products of this
Industry, which shall become effective upon approv-al byr the Ad-
ministrator. NPo Member of the Industry shall sell any goods of
any of the classes above described for the~tt purposes of vilting Ath
provisions of this Code or of defeating teproe fteAt
except in full compliance with such rules and regulations.
SECTION 2. The standards of fair competition for the Industry
with reference to prices and practices are declared to be as follows:
(a) Wilfurlly dlestructive price cutting is an unfair method of com-
petition and is forbidden. Any Member of the Industry or of any
oher industry, or the customers of either, may at any t~ime complain
to the Code Authnority that anyT filed price constitutes unfair com-
petition as destructive price cutting, imperiling small enterprises or
tending toward monopoly or the impairment of code wagesy and
wo~crking conditions. The Code ~Authority shall within five (5) days
afford an opportunity to the member filing the price to answer such
complaint and shall within fourteen (14) days make a ru!ingr or
adjustment thereon. If such rulingf is not concurred in by either
party to the complaint, all papers shall be referred to the Research
and Planning Division of the National Recoveryr Administration,
which shall render a, report and recommn~Idation ther~eon to the

(b) When. no declared emergency exists as to any given product,
there is to be no fired mnimlrum, basls for prices. It Is intended that.
sound cost estimating methods should be used and` that c~onsidrllation
should be given to costs in the determination of pricing policies.
(c) Wh'len an lemergency exists as to any given product, sale below
the sta~ted minimum price of such product, in violationl of Section 3
hereof, is forbidden.
SECTION 3. When the Administrator determl!ines upon the petition
of the Code Authority, or othlerw~ise, that an em~er~gencya exists in
this Inldustry because of decstrulc~tive price cutting which is such as
to render ineffective or ser~iously endangrers the maintenanclc e of the
provisions of this Code, the .Administrator may cause to be deter-
minedl, after investigation of costs by the Code Authority through
an impartial agency, the minimum price for any product of this In-
dustry necessary to mitigate the conditions constituting such emer-
gncy and to effectuate the purposes of the Act, and belowP which price
such prod-uct of the Industry shall not be sold. Such dc~etermllination
shall be subject to such noticee and hearincr as the Adlministrator may
require. From time to time the Code Authority, upon its own initial*
tive, or upon the request of any interested party, may reconmmend-
that the determination be reviewed, or the Admminstr~ator mray cause
such determination to b~e reiewed and appropriate action taken.
SECTroN 4. TradICe PracZ(tic'e Rul~e~s.--Thle following trade practices
are declared to constitute unfair methods of competition between
Member of the Industry, and no Member of the Industry shall
use or engage in, any of them, either directly or indlir~ectly, through
any officers, agent or employee. Engagmyg in any one or more of
others or any frUther trade practice provISIons which hereafiter may
be estab~lishled on recommendation byg the Code Authority, approve
byg th~e Administrator,? after such hearings as he may prescribed hl
be deemed a violation of this Code.
(a) Selling of any indrustry product by a 1\Iember of the Industry
at a price below thle open, filed or publicly announced price schedules
of such memiiber. or' to deviate from the conditions of sale contained
in such schiedules filed pursuant to Section 1 of this Article.
(b) Secretly pay'ingr or allowing rebates, refunds, commissions,
credits or unearned discounts, whether in the form of money or
otherwise, or the extension of special services or privileges to certain
p~urchasers which are not extended to all purchasers under similar
circumstances, for the purpose or w~ith the effect of violatingr the
provisions of this Code.
(c) Canncelinng in whole or in part, or permitting the cancellation
in whole or in part, of any contract of sale of any product, or except
for a fair consideration or just cause or for the purpose. of effectuat-
ing a new contrnet with the buyer when the purpose of such cancella-
tion is to create an unfair price advanntage forr n Member of Industry.
(d) Kinowing~ly inducing or attempting to induce th~e br~each of
an existing contract between a completitor a7nd his customer or source
of supply; or interfering with or obstr~ucting~ inl any mannner the p~er-
formance of thle contrnetual duties between a Memllber of Industry9
and his customer.
(e) Securing or attempting to secure confidential information con-
cerning the business of a competitor by a false or mnisleadingr state-

ment; or rep~lresenfltation by a false impersonation of one in authority,
by br-ibery, or by anly other unfair mlethod~t.
(f) Se~llingP on consignment except where peculiar circumstances
of the Industry require th~e practice. Such excep~tio ns shall be defined
by the @C,!d Authority with the approval of the ~Administrator, and
shall apply alike to all Membrllr s of thne Inldustry.
(g) Knowvingly publishing advertising, whether printed, radio,
display or otherwise, which is mnisleading or inaccurate in any mate-
ria'l particular; or misrepresenting any goods or products of the In-
dustr~y as to use, trade-markr, grade, quality, quantity, size, substance,
charac.ter, nature, fiish, material, content, pr~eparnation, or matkinrg
any misrepresentation as to credit terms, values, policies, services or
the nature or form of the busliness conducted.
(h) Branding, mar~kingr or packing any good's or products in any
manner, which is intended to deceive or mislead purchasers with re-
spect to grade, quality, quantity, size, substance, character, nature,
finish, material, or content of such goods or products.
(i) Knowingrly publishing advertising which refers inaccurately
in anyT material particular to any competitors or their goods, prices,
values, credit terms, policies or services.
(j) Rtequiring that the purchase or lease of anyT products or equip-
ment be a prerequisite to the purchase or lease of any other products
or equipment.
(k) Giving or permitting to be given, or directly offering to give
anything of value for the purpose of influencing or rewrardinga the
action of any employee, agent or :representative of another in rela-
tion to the business of the employer of suchl employee, the principal
of such agent or the reprePsented party, without the knowledge of
suchn em~ployer, principal, or party. Thscomlmercial bribery pro-
vision shall not be construed to prohibit free and general dist ribution
of articles commonly used for advertising except so far as such
articles are actually used for commercial bribery as hereinabove

In the event that the Code Authority shall determine that then
existing capacities and capacities then under construction for the
production of products of t~he I~ndustry are in excess of the capacities
required to meet the demand for such products, and the Adminis-
trator shall approve such determination upon the recommendations. of
the Code Authority, then such capacities shall not be increased (ex-
cept for the supplying of foreign .demand) until such time as the
Code AuthorityT and the Administrator, or the Administrator acting
on his ownrI behalf, shall determine that the demand for such products
cannot be mnet by the fullest possible use of such capacities.

No provision of this Code relating to prices or terms of selling,
shipping or marketing, shall apply to export trade or sales or ship-
ments for export trade. E-xport Trade shall be as defined in the
Export T'rade Act adopted April 10, 1918.


SECTION 1[. This Code and all the p~rovisions thereof are exprssly
madep subjectf to t~he right of the President, in accordance wt the
provisions of Subsection (b) of Section 10 of thle Act, from time to
time to cancel or modify any order, approval, license, rule or regru-
lation issued under said _Act, and specifically, but without limitations,
to the right of the President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
SECTION I2. Such of the provisions of this Code as are not r~equiredi
to be included therein by thie Alct may, withn the approval of thle Ad-
muinistr~ator be amended as provided in Section 3 her~eof, in~ such
manner as mary be indicated by the needs of the public, by changes
in circumstances, or by experience; all the provisions of this Codle,
unless so modified or eliminated, shall remain in e~ff~ect until the
expiration date of Title I of the Act.
SECTION 3. An amendment may be proposed by any interested
party either tio the Code Authorit~y or directly by or to the Adminis-
trator. All proposed amendments shall be referred to the Code
Authority, wvho shall give RIlembers of the Industry an opportunity
to be heard thereon, and thereafter the Code AuthorityS mnay make
such recommendations thereon as is deemed proper; provided, how-
ever, that wrhen approved by th~e Admiinistrator as necessary to effee-
tuate the policies of the Act, after such notice and hearing as he may
prescribe, any proposed amendment shall thereupon become effective
as a part of this Ciode.
SECTIOIN 41. If the Code Auuthority shall desire to propose an amend-
ment, after having approved the same, it shall submit the same to
the M~embers of the Industry w-ho shall ther~eupon vote upon said
proposed ammencient either at a special meeting called fo~r that pur-
pose or by mail ballot, at the discretion of the Code Auth~ority. In
such votingr there shall be tw~o (9) separate ballots on eachi ameind-
ment: so p~ro~osed :
(a) Each Alember of the Ind~ustry voting shanll be entitled to cast
one (1) vote ulpon said amen~ldment.., whlichl vote shall be known as
the "i M~emb~er Y'ote ".
(b) Each Rlember of the Indutlrry voting uipon saidl proposed
amendment shall be entitled to east one (1) vote for each thousand
tons shipped durring thie preceding calendanr year by such member.
This vote shall be known as the "' Capacity Vo~te ".
In order to receive approval of the Indlustry, any such proposed
amendment shall receive thle affirmative: vote of ::
(a) At, least sixty-six andl two-thirds (6693) per cent of thle
lIfember Votes cast and in addition thereto,
(b) At least Esxty-six and -tw-o-thirds (6693) per cent of th~e
Capacity Votes cast, both sepanrately considered. If such proposed
amendment shiall be approved in the manner above set forth, the
Code Authority shall submit such proposed amendment to thle Ald-
miinistrator. Such amendment shall become effective as a part of
this Codle upon approval by thle Administrator after such notice and
hearing as he may prescribe.


1 1 11 111IHIIIIIIII I 11 1111
1r8 3 1262 08486 8354


SeCrCroN 1. Each Membe~jr of t~he I~ndustry shall within t.hirty (30)
days after the~ effective date of this Code register with the Code
Au th-ority'. All Mecmbers of the Industry wiho may engage in the
Indus~itrya thereanfter shall likewise register with t~he Code Authority.
SEcrTIOS 2. Every M~embercl of the Industry shall, within thlirty
(30) dalys after the effective date of this Code, or th~e date upon
which such member b~ecomelts subject thereto, w~hichlever is latest.
register the full name of itsF enterT)pris togrether with a1 statement of
the number of shops, esta7blishmnts~t or separate units thereof und
their location, with the Code Authority. Every such M~ember of
the Industry which may open for business an. additional shop, es-
tablishment or separa-te unit after such registration1 shall, ~it~hin
thirty (30) days after such opening, register the same in hkle manner.

No provision of this Code shall be so applied as to promote
monopolies or monopolistic practices, or to eliminate, oppress, or
discriminate against small enterprises.

This Code and all supplementary. .provisions thereto shall expire
on. June 16, 1935, or on the- earliest date prior thlereto on which the
President shall, by proclanialion, or' the Congress shall, by joint
resolution, declared that t~he emeprgency recognized by Title I of the
Act has ended.

This Code shall become effective beginning two weeks after its
approval by the Atldministrator.
Approved Code No. 520.
Registry 1013-11.