Code of fair competition for the celluloid button, buckle, and novelty manufacturing industry as approved on April 20, 1934


Material Information

Code of fair competition for the celluloid button, buckle, and novelty manufacturing industry as approved on April 20, 1934
Physical Description:
p. 367-377 : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


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


Additional Physical Form:
Also available in electronic format.
General Note:
"Approval Code No.400 ; Registry No.1009-05"

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004851217
oclc - 63654973
System ID:

Full Text






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Eur sale~ byhe supaerinendent o Doc~uments, Washingtn, D.C. Price 5 cente

App~roed Code No. 400

Registry No. 1009--05



U: .
O -r


This publication is for sale by the Superint~endent of Documents, Government
Printing Office, Washington, D).C., and by district offices of the Bureau of Foreign
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Approved Code No. 400



As Approved on April 20, 1934


An application havingr been duly made pursua~nt to and ini full
compliance with the provisions of T'itle I of the National Industrial
Recovery Act, approved June 16, 1933, for ap~proval of a Code of
Fair Clompetition for the Celluloidl Button, Buckle andi Novelty
Manufacturing Industry, and hearings having been duly held thereon
andt the annexed report on saidl Code, containing findings with
respect thereto, having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh~ S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Or~der No. 6543-A,
dated Decemnber 30, 1933, and otherwise; do hereby incor~poralte by
reference said annexed report and do find that said Code complies
in all respects with the pertinent provisions andi will promote the
policy and purposes of said Title of said Act; and do hereby order
that said Code of Fair Competition be and it is her~eby approved.
HUGH S. JaHNuon,
Admtinis~trator for huluust~rial Recovery.
Approval recommended :
Divisin Admi.'/2nistra~tor.
April SO, 193.




The White HLouse.
StaR: The Public Henr~ing on the Code of ]Fair Comlpetition for the
Celluloid Button, Bu~cklet and Novelty Manllufactur~i ng Induistry, as
propos~ed by the Celluloid Button, Buckle and Novelty nlanufac-
flturers Association, was conducted in the Milayflower Hootel, Wanshing-
tonl, D.C. on October 1f2, 1_933.
Ever1y person who Irequlested an. appearance was fairly hearld in
acilordancc e with regulations of' the National Reco~very9 Admlinistra-
tion. TIhe Code has the approval of the Labor, Industr~ial and Con-
sumers' Advisory Boards of the N~ational Recovi\elry Admni nis~tra~t io(~n
and of the L~egal Division. The Chairman of the (codie Committee,
upon author~izatio~n of the Committee, has also given alpproval to
the final draft of the Code on behalf of the IndustryT.
The Indu ltry, as def~inedl in the Code, includes the manunfacturle of
buttons, buckles, and novelties made wholly of celluloid or wit~h
cellulloid as the major rawFp mater~ial. The necessory materials are
merctal, w\cool and leathler, and are used for backlin, or st~rengthe-ningr
pupoes he plrodcucts of the I~ndustry are used p~'rulnarily inthle
Ladies' Garment Trade and are put on dressests, cloak~s and furl coats.
The products are also used as nove~lties~ for the Mlillilerly Trade.
Thne Industry does not produce. for stock. It workrs exclusi~elyv on
orders. It is estimated that the wholrle ready sto-ck amounts to less
than 5,000.00, and this is an accumulation o~f stock; produced in
exesl.s: of orders.
In 1928 there wlere 20 concerns in the Induslt ryS with 725 employees.
The aggregate production, amounted~ to $2,1100,000.00. In 193:3 there
wtere 39 concerns, and 1,550 employees., The estimated~ production
was $2,800,000.00. This indientes that the numnber of employees has
been more than doubled in five yea rs.
It wpas alttempted first by t'hleDeputy Admninistrator to, combine
the various B~utto-n Codes into one Codle for the entire Indcustry, but
this was found to be impr~ct~icablec inasmuch as no unanimity could
be reached by the representatives of the dlifferent brannches of the
Industry. However, a provision has be~en incorporaltedl in this Code
which, if agreed upon by all branches of the Industry, may op~en the
way for a cooperative admlinistr~ation1 of the several Codles.
Tfhe submitting Association repres.zents 75%o of the Celluloid But-
ton, Buckle and NT~ovelty Mannufactur~ers in the Unlited States, and
88%0 of the volume of business.

.Art iele I gives the purposes of ther Code.
At~rticle II sets fourth certain definitio~ns.
Airtile III contains the mnaximnum hours' provisio~ns of t~he Code.
~Article IV establishes the minimum wage for all employees em-
p'loyedl in the Industry.,
ALrticle VT sets .forthl the general labor provisions.


Article VI provides the general organization of the Code Authority
and defines its powers and duties.
Article VII defines trade practices which are unfair and shall be
Article VIII provides for employers who mlay be partly engaged
in this Industry and partly in another.
Article IX provides for the modification of this Code in accord-
ance with Section 10 (b) of the National Industrial Recovery Act.
Article X states that this Code shall not permit moniopolies.
Article XI deals with price increases.
Article XII specifies the effective date.

The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter :
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act., including
removal of obstructions to the free: fow 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 indlus-
tr~y for the purpose of cooperative action among the trade groups,
by inducringr and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminiat-
ing unfair competitive practice, by promoting thle fullest. possible
utilization of the present production capacity of indlust ries, by avo~id-
ing undue restriction of production (except as may be temnporarily.
required), by increasing the consumpltion of industrial and agr~icul-
tural products through increasing pulrchasin g power, by~\ reducring
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating industry..
(b) Said industry normally employs not more tha~n 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 perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Scubsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associa-
tion is an industrial association truly representative of thle aforesaidi
industry; and that the said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The. Code is not designed to and will not permit 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
F~or these reasons the Code has been approved.
Howc S. JoHNSON,
Ad ministrator
APRam 20, 1934.


To effectuate the policies of T~itle I of the National Industrial
Recovery3 Act, the following pr1ovisions are estab~lishedl as a Code
of Fair Competition for the Crelluloid- Button, Bu~c~kle and Novelty
Manullfa]Cturlling Indutrstr~y, and shall be the standard of fair comipeti-
tionl for this Indusrltry, and shall be binding ulpon every member

1. Thle term Industry as used her~ein, includes thle mannufa.c-
ture of bulttonsl~l, buckles and nloveltiibs madclt whlolly of celluloid
or with. celluloid as a major raw matterial, nd sulch other related
products as may from time to time be included under the provisions
of this Code by the Adm~inistrantor after such notice and1 hearings as
he may prescribe.
2. The term "member of the Ind~ustr~y includes any indlividu~al,
parrtner~ship>, assoc~iatio n, corporation or other person engargedl in thle
Indutlstry, either as an employer or on his ow~n brhalf.
3. Th~e term employee as used her~ein includes any person en-
gagedl ini any phase of thTe Industry in any capacity. receiving com-
p'ensat~ion for his services, irrespective of the nature or method of
paymeitnt of such complensation or his interest otherwise in said
Indu rst ry.'
4., T'he term employer as ulsed herein includes any one for
whose benefit such employee is so engaged.
5. T'he terms "L President ", "c1-.t aind "'Admlinistr~at.or as used~
herein, shall mean, respectively, Pr~esidlent of thle United States,
Title I of the National Indcustria-l Recovery A~ct, and the Administra-
tor for Indlustr~ial Recovery.

1. Except as hiereinafter provided, no employee shall be permitted
to work in excess of fortyv (40) hours in any; one (1) week, nor
more than eight ~(8) hours in any tw~enty-four (24) hour per~iod.
2. No employee shall be permitted to wRorkl for more than five
(5) days in any seven (7) dayr period.
3. No manufacturing operations shall be performed on any Satur-
day or Sunda~ty, except that such operations may be performed on
the Saturdcay of a weeki in which a, legatl or religious holiday occurs
during the normal work week.
4. The Code Authlority, subject to reviewT by the Adml~inistrator,
mtayT determiine the hour before wh!ich wor~k shall not; begin, and the


hour after which work shall cease, andi may dleterm~ine in which
localities such regulations shall apply.
5. No person employed in clerical or office work shall be permiitted
to work in excess of forty (40) hours per week averaged over a
one (1) month period.
6. No person employed as a shipping elerk shall be permittedl to
work in excess of forty (40) hours per week avecraged over a three
(3) month period.
7. Employees engaged in maintenance or in emergency repair
work may be permitted to work more than forty (40) hours in any
one week providedl one and one-third (1!8) times the regular hourly
rate is paid such employees for such overtimle. N~o watchmen shall
be permitted to work more than forty-four (44) hours in any
one week.
8. The provisions of this Article shall not apply to emplloyees
employed mn managerial or executive capacities who ear~n Ihirty-
Five (35.00) Dollars per week or more, nor to outside salesmen.
9.No employer shall knowingly permit. any employee to work for
any time which, when totaled with that already performledl with
another employer or employers in this Industry, exceedls the
maximum permitted herein.
10. Plant, operations shall be limited to onie (1) shift of forty
(40) hours per week.

1. No employee shall be. paid at less than the rate of Fouirteen
($14.00) Dollars per week of forty (40) hours.
2. Learners m~ay be paid at not less than the rate of eighty per
cent (809'c) of the minimum wage provided herein for a period not
to exceed twelve (12) weeks; provided that in no case shall the total
number of learners employed exceed tenl per cent, (10'9) of the total
number of employees. Ifowever, any employer shall be entitledl to
employ at least one learner.
m3. This Article establishes a mninimnum rate of pay which shall
apply irrespective of whether an employee is actually comnpensated
on a time rate, piece rate, or other basis.
4. Equitable adjustments in pay schedules of all employees shall
be made.within thirty (30) days after the effective date of this Code
by any employer who has not heretofore made such adjuistments un-
der the National Indust~rial Recovery Act. Within sixty (60) days
after the effective date all such adjustments made under thle Act
shall be reported to the Code Authority and t~he Admninisttoraor In
no case shall rates be reduced.
5. No employee now employed at a rate of pay in excess of the
minimum herein provided shall be discharged and reemp-loyedl at
a lower rate for the purpose of evading the provisions of thiis Code.
6. Female employees performing substantially the same woerk as
male employees shall receive thie same rate of pay as male employees.

1. No person under sixteen (16) years of age shall be employed
in the Industry. No person under eighteen (18) years of age shall


be employed at operations or occupations wvhich1 are hazardous in
nature or de~tl~rimen\tal to hea~lth. The Codte Author~ity shall submit
to th~e Admlliniistrafo r bezfo~e. May 1, 1934, a list of such operations
or occupal~tio~ns. In anly ~State an employer shall be deemed to have
complied with these lr~ovisions as to age if he shell have on file a
certificate or permit duly issuedl by the authority in such State em-
powered to is-sue employment or age certificates or permits showing
the employee is of the required age.
2. Employees shall haves the right to organize and bargain col-
lectively, through representatives of their own choosing, and shall
be free from the inter~ference~ re~str~aint, or coercion of employers
of labor, or their agrents, in. the designation of sulch' representatives
or in self-ol~rgnization or in other concerted ac~tivities for the pur-
pose of collective barganiningr or other mutual aid or protection.
3. No emplloy~ee and no one seeking employment shall be required
as a condition of employment to join any company>n unionl or t~o
refrain from jolming, orgamizmg, or assistmng a labor or~ganizattion
of hnis own choosing.
4. Employers shall compywt h aiu or flbr
Minimum rates of paty, and~ oith ter condition hofr mpoyment ap
proved or p~rescribled by the President.
5. Nro employer shafll reclassify employSee~s or duties of occupantion
performed or engage in any subterfuge so as to defeat thle pr~ovi-
sions of the Act or of this Code.
6. EveryS employer shall provide for t~he safety and health of his
employees at thne place alnd during the hours of their emnploymlent.
iStandards for salfetly and1 health shall be submitted byr the Code
Authority to the Administrator within six (6) months after the
effective date ofi this Code.
7. No provision inl this Code shall sulpersede any Federal or
State law which imposes more stringent requirements on emplooyers
as to agei of employees, wages, hours of work, or as to safety, health,
or sa~nitary regullations, or insurance, or fire protection, or general
working conditions, than are imposed by this Code.
8. Each member of the Industry shall be furnished, by the Code
Authority, with offlicial copies of the provisions of this Code relating
to hours of labor, r~ates of pay, and other conditions of employment.
Such official copies of such provision shall contain directions for
filing complaints of violations of such provisions, and kept
conspicuously posted at all times by such members of the industry
mn eachl shop, establishment, or separate unit, to the extent necessary
to mak~e them, freely accessible to all employees. WVhenever any
modifications of, or exemnption or exception from this Code permits
any person to pay lower wcages3, or wor~k his employees longer hours,
or establish conditions of employment less favorable to his employees
th~an those prescribed by the provisions contained in such official copy
of the provisions of this Code, the C-ode Authority, on the request
of such person, shall fur~nish him with certitied copiles of such modi-
fientions, exemptions or exception inl sufficient number for posting
along side of such official copies of Code Provisions. No member of
the ind-ustry3 shall display~ or furnish any incorrect copies of such
p'rovisions, directions, Inu~lifications, e~xemnptions or exceptions.
9. No member of the Indulstry shall give out wrork to be performed
in any homne or dwelling place.



1. Organization and Constitution of the Code AtuthorityT.
(a) The Cod-e A~uthority, hiereby established, shall consist of not
more than nine (D) mnembers. Six (6) members shall be elected by
the Celluloid Button, Buickle asnd Novelty Maniufacturingn Associa-
tion. In addition t.h~ereto, the Aldmlinistr~ator m~ayr appoint not mor~e
than three (3) members who shall be without vote and together with
the Admuinistratorr shanll be given notice of and may sit at all meet-
ings of thle Code Aiut~horit~y.
(b) Each Trade or industrial association directly or indirectly
pa rt~icipantin gr----r--c in the selection or activities of tlhe E ode Aulthority
shall (1) impose no inequitable restrictions on the membership, and
(2) submit to the Adminiistrator true copies of its articles of associa-
tion, by-laws, regulations anid anyl amendments when made thereto,
togiether with such other information as to membership, organiza-
tion and activities as the A~dministrantor may dleeml necessary to eff'ee-
tuate thle purposes of the Act.
(c) In order that the Code Aut~hority shall at all times be truly
representative of the industry and inl other rera~rds com~ply with the
provisions of the Act, thle A~dminiistrator may prescribe suchl hiearings
as he mayg deem proper; andl thereafter if he shall find that the Code
Authority is not truly representative or does not in other regyardls
comply with the prov-isions of the A~ct? he may require an appropriate
modification in the method of selection of the Codle Autho~ity..
(d) M~embers of the industryS shall be entitledl to participate in
and share the benefits of the activities of the. Code Authority by
assenting to and compi-lying with the requirements of this Code and
sustaining their reasonable share of the expenses of its administration.
Such reasonable share of the expenses of administration shall be
deteminiled by3 t~he Code AuthoritY, subject t~o review by the Admini-
istrator, on the basis of volume of business and/or such other factors
as may be deemed equitable and approved by the Administrator.
(e) Nothing contained in this Code shall constitute the members
of the Co~de. Authority partners for any purpose. Nor shall any
member of the Code Aut~hority be liable in any manner to anyone
for any act of any other member, officer, agent or employee of the
Code Authority, nor shall any member of the Code Authority exrer-
cising reasonable diligence in t~he conduct of his duties hereunder be
liable to any one for any action or omission to act under the Code.
except for his own willful misfensance or non-feasance.
2. The Code Authority shall have the following powers and duties
in addition to those elsewhere provided in this Code:
(a) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of the Code, in accorda-
ancee with the powers herein granted, and to submit same to theL
Administrator for his approval together with true copies of any
amendments or additions when made thereto, minutes of meectines
when held, and such other information as to its activities as the
Administrator may deemr necessary to effect the purposes of the Act.
(b) To obtaini from members of thle industry for use of the Code
Authority and of the Administrator in the admninistr~ationn andi
enforcement of the Code, and for the information of the President,
reports based on periods of two or four weeks, or multiples thereof,


as soon as the necessary readjustment within the Industry can be
mlade, and to give asssi~stanice to members of the Industr al ekpin improv-
ing methods, and otherwise. All1 individual reportsshlbekp
confidential as to members of the .industry and only general
sulnunarie~s thereof may be published.
(c) To receive complaints of violation of this Code, make investi-
gations thereof and provide hearings thereof and adjust such com-
plaints, and brings to t~he attention of the Admlni n ist rator recom men da-
tions, and information relative to unadjusted violations, under such
rules and regulations as may be prescribed by thle Administrator.
(d) To use such trade associations and other agencies as it deems
proper for the carrying~ out of any of its activities provided for
herein1 and to pay such trade associations and agencies the cost
thereof, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities uinder this Code and that such
trade associations and agencies shall at all times be subject to and
comply with thne provisions hereof.
()To coordinate the administration of this Code w~ith such other
codes, if any, as mayT be related to ther industryv. or any' subdivision
thlereof, and to delegate to any other admninistrative authority, with
the approval of the Adminisitrantor, such p~ower~s as will promote
joint and harmonious action upon matters of common interest.
(f) To provide ways and means for financinlg the operation of said
Codle Authority and to have the power and dutyv to detePrmine an
eqluitable method of apportioning in the industry the cost of admin- this Code. Miloney raised in any manner shall not exceed in
amount such reasonable cost.
(g) To recommend to the Admninistrator anly action or measures
deemledl advisab~le, including further fair trade practice provisions
to govern members of the industry in their relations with each other
or with other indlus-tries, measures for industrial planning, and sta-
bilization of employment; and including moldjiafictonls of this Code
which shall become effective as part hlereof ulpon approval by t~he
AdminisEt~rator after such notice and hearings as he mnay specify.
(h) TCo investigate competitive articles imported in thle UCnited
SCtates on such. terms and under suchn conditions as to render ineffee-
tive or seriously endanger the maintenance of this Code and to act
as thne agency for making ccmplalint~s to the proper government
agencies on. behalf of this industry.
(i) To cause to be for~mulated an accounting ,systeml and methods
of cost finding anld/or estimating adaptable for use by all members
of the industry. After such systeml and methods have been for~mu-
Jated, full details concerning them shall be mnad~e available to aUl
members. Thereafter all members shall determine and *or estimate
coLstS in accor~dance with the principles of such methods.
(j) To recomminentl to the A~dministratorl alppropriate provisions
for the r~egulaltion of th~e disposal of cloistress mnerchandise.
(k~) To !-oor~dinate~ the admin-i~stration of this Code with such other
codles as may be related to the Ind'ustryr, the Code Authority may
designdte rep~resentatives for thie purpose of meeting w~ith like rep-
resenltativcs dlesignatedl by the Co-de Authorities of the related Codes
re~cfe~rred to above. Such representatives shall be duly authorized to
constitute, a committee, whichl committee shall, as soon as practicable,


submit to the Administrator reports and recommendations withi
respect to:
(1) The establishment and method orf selection of a Gener'al But-
ten M~anufacturer~s C~oordinat~ing Coulncil.l
(2) The jurisdiction, asj well~ as the adlminisitr~ativ.e powlers and
auit~hority to be delegatedl to riuc~h Coordlinatin g Coruncil.
Upon approval by tlhe Adminlisjtr~ator, a fter' sulch noticre andc hear-
ing as hie shall prescribe on r~ecollmmendlations of the Counircl, the Code
Author~ity shall be subject to the jurisdlictiou! riiles, reglaltionls, And~
by-lawrs of the General Burtton blanufact~urers C'oordiinating~ Council
in the formi and manner appr~loved by the Admninistr~ator, any exp~re~s
or implied delegation of power or duty inl thiis C'ode to thec Code
Authority notw\ithlstannding.
3. In addition to the information requiredc to be submiittedl to thie
Code Authority, as set fourth in this A~rticle the~re shall be fulrnishled
to gorver~nment agencies sulch statistienl infortioni~il as thef Admlinis-
trator may deeml necessary forr the p~urposies r~ecited- inl Sectioin 3 (;1)
of the National Inidustrial R.ecovery Act. Nothing inl this Codle
shall1 relieve any mlember o~f the Indlustr~y of any existing~ oblliga~tio-ns
to furnish reports to any' go~vernmient agcncy..
4. If the Admninistrator shanll determine thant any action of a co~de
authority or any agency thereof may b~e unfair or ulljustt olr c~ontra.ry
to the public interest, the Admnini~strator may reqluire thant such~ action
be suspended to a afford an opp~ortunity- for investigation of thle mler~its
of such action and further consideration by such code authority or
agency pending final notion which shall not be effective unless the
Administrantor approves or unless he shall fail to dlisapprove after
thirty day's' notice to> him of intention to proceeds with suchi action
in its original or modified- formn.


1. No member of the Industry shall use advertising, whether
printed, radio, display or of any other nature, or other reppresentation
which is inaccurate in any material particular, or in any way misu-
represent any commodity, including its use, tradle-mlark, grade, qual-
ity quantity, origin, size, substance, character, nature, finish, ma~te-
ria content or preparation, or credit terms, values, polletes, services,
or the nature or form of the business conducted.
2. No member of the Industry shall use advertising or selling
methods or credit terms which have the cap~acity or tend(.ency to de-
ceive or mislead the customer or prospective customer.
3. No member of the Industry shall withhold from or insert in
any quotation or invoice any statement that makes it inaccurate in
any material pa rticular.
4. No member of the Industry shall brand or mark or pack any
comimodityv inl any manner which tends to deceive or mislead pur-
chasers with respect to the brand, grade, quality, quantity, origin,
size, material content or preparation of such commodity.
5. No member of the Industry shall use advertising or other repre-
sentation which refers inaccurately in any material particular to any
competitors or their conuinodiities, prices, values, credit terms, poli-
exes or services.


6. No member of the Inldustry shall secretly offer or make any
paYmen't or allowance of a rebate, refund, commission, credit, un-
ear~nedt discount or excess allowc~ance, wh)ethler in the form of money
or otherwise for thne purpose of influencing a sale, nor shall a mem-
ber extend to any customer any special privilege not extendedl to
all customers of the somle class.
7. ~No merchandise shall be exchanged at any time nor shall it
be consigned, nor in any method of selling to be engaged in which
shall have the effect of selling on memorandum, or approval. No
merchandise shall be accepted for retuLrn except for defects in
manufacture, delay in delivery, or err~or~s in shipment.
8. No member of the Industry shall give, permit to be given,
or offer to give, anything of value for th~e purpose of influencing
or rewarding the action of any employee, agent, or representative
of another in relation to the business of the employer orf such em-
ploy~ee or the principal of such. agent without the knowledge of such
employer or principal. Commercial bribery provisions shall not be
construed to prohibit a greneranl distribution of articles commonly
used for advertising, except so far as such articles ar~e netually
used for commercial bribery as hereinabove defined.
9. No member of thne Industry shall at~tem~pt to induce, thle breach
of an existing contract betw-een a, competitor and his customer or
source of supply; nor shall anyl such member interfere w~ith or
obstruct the performance of such contractual duties or services.
10. No member of the Industry shall require that the purchase
or lease of any commodity be a prerequisite to the purchase or lease
of anly other commnodity.
11. No member of the Industry shall give cash discounts in excess
of the following: 2%r te~n days e.o.m., net 30 days; or 3C; ten days.
12. No member of the Industry shall ship goods other than F.O.B.
point of origmn.
13. No member of the Inldustryr shall sell any commodityv at a price
below his own individual cost. HEoweveir, any member may mleet
the price of a competing member of the Industry whose cojtr under
this provision is lower. Cost shall be determined in accordance
with Section 2 (i) of A~rticle V7I of this Code. Distress mnerc~han-
dise~ may be sold below cost a~s hereinavbove provided for until
such time as the Code Authority in accordance with Article VI,
Section 2 (j), shall recommend to thre Adminilstrat~or appropriate
provisions for thie regulation of the disposal of such me rchandclise.
(b) When the Code Authority dletermnine~s that an emnergrency exists
in this Industry and that the cause thereof is dlestr~uct~ivc p~rice-
cutting such as to render ineffective or seriously endanger th~e main-
ternance of the provisions of this Code, it may cause to be determined
the lowest reasonable cost of thet products of this Industry, such
determninationn to be subject to such notice and hearing as the Ad-
minist rator may require. The Administrator may approve, disap-
prove, or modify the determination. Thereafter, during the period
of the emergency, it shall be an unfair trade practice for any' mem-
be~r of the Industry to sell or offer to sell any product of the Industry
for which the lowest reasonable cost has been determined at such
prices or upon such terms or conditions of sale that the buyer will
pay less therefore than~ thle lowest reasonable cost of such products.
When it appears that conditions have changed, the Code Authority,


upon its own initiative or upon the request of any interested party,
shall cause the determiinatio~n to be reviewedl.


Any emplloyler who at any t~ime, or times. shall mannufact~ure any
article or articles within the p~rovisio~ns of this Codce, shall be bound
by all the provisions of this C'ode as t~o all emplloyees engaged in
whole or inl pa~t, in such manunfacture.e
In ense an1y mnployee shl~l be engaged2 part~ly in sulch mnanufacture
and partly in the maInufactur~e of goods of aInother character, this
Code shlall applyl to su1ch por1tioln of suIch empllloy.eek timle as is
applied to thle mannufacture of such articles coveredcc b:y this; Code..
Anu'cts~ IXS-MRontrICAnoN:,

1. Thlis Code a7nd all thle pr1ov.isions thereof ar1e explresslyr mad~e
subject. to th~e right of the Pr~esidelnt, in ac~cordnllce with th~e p~rovi-
sions of sub~section ( h) of Sect~ion 10 of the Natio~nal Industrial
Recovery~ Act, fromt time to time to cancel o~r mnodify any~ Order,
approval. license, rulee or regulation issuedl ulnder Title I` of said Act
and specifically, but without limlitaltion,, to the right o~f the Presidlent
to exncel or miod~ify his appr~ioval of thiis Code or any condiiitions
imposredl by h~im up~onl his approva\'fl threo~f.
2. This Code, except as to, pr~ovision s r~equiriedl by the A~ct, may
be modlifiedl on the baisis of experience or changes in circumllstances,
such modlifications to be basedl upon application to thle Adicnnistrator
and such notice and hearing as he shall specify, and to becomet effee-
tive on applroval of the President.

No provision of this Code shall be so applied as to permit mionopo-
lies or mnonop~olistic practices, or to eliminate~, oppress, or discrinui-
nate against small enterprises.

Whereas t.hle policy of the Act to increase real purchasing power
will be mad~e more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases except such as may be required to meet individual cost should
be delayed. but, when made such increases should, so far as possible,
be limited to actual additional increases in the seller's costs.


This Code shall become effective on the second M~onday after its
Approved Code No. 400.
Registry No. 10-0(M5.

II II II I lill lII Ill IllI III|ll
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