Code of fair competition for the batting & padding industry as approved on May 5, 1934

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Title:
Code of fair competition for the batting & padding industry as approved on May 5, 1934
Physical Description:
11 p. : ; 23 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Upholstery trade -- Law and legislation -- United States   ( lcsh )
Interior decoration -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
"Approved Code No.417 ; Registry No. 221-1-02"

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Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004851179
oclc - 63654232
System ID:
AA00006551:00001

Full Text

Per sale by the Superintendent of Docnments, Washington, D.C. - Price 5 cents


Approved Code No. 417


Registry No. 221--1-02


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


BATTING AND PADDING


WE DO OUR PARPT


U.


UNITED STATES
GOVERNMENT PRINTING OIFFIC
WASHINGTON: 1934


INDUSTRY

AS APPROVED ON MIAY 5, 1934

























This publication is for sale by the Sup~erintendent of D~ocuments, Government
Printing Office, WViashington1, D.O., and by district offices of the Bureau of Forecign
and Domestic Comm~erce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birminghamz, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Char~le~: stonl S.C.:r Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commzerce Buildinlg.
Detroit, M~ich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksxonville, Fila.: Chamber of Commerce Building.
Kansas City, Mo1.: 1028 Baltimore Avenue.
Los Anglesrclc Calif.: 1163 South Broadwiay.
Louisville, Ky.: 408 F'ederal Buildlilg.
Menlllhlis, Tenn.: 229 Federal Buildling.
Minneapois, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Custombouse.
Nc- w York, N.Y.: 734 Custombouse.
N~orfolk, Va.: -100; East Plume Street.
Phlilnlellphin. Pa.: 422~I Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Comlmerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506i Olive Street.
San Francisco, Callif.: 310 Customhouse.
Seattle, Wash.: 800 Fe'I:Tex al Office Building.












Approved Code No. 417


CODE OF FAIR COMPETITION
FOR THE
B3ATTINJG ANID P'ADDINGF6 INDUISTRY

As Approvedl on Mlay 5, 1934


ORDER

CODEI OF IiAIR COMIPETITION FOR THE BATT"IING; AND PAITINom INDUSTRY
An application having: been duly made pursuant, to and in full
compliance withl the pr~ovisions of' Title I: of the National IndusltrialZ
Recovery Acet, approved June 16, 1933, for app~rova;l of a Code of
Fair Competition for the Ba.ttingr and3 Paddcing Industry, and~ hlear-
ings having been duly hteldl thereon and the annexed report onl said
Code, containing findingsq with respect thereto, having been made
and dlirect~edl to thle Pre~sident :
~OW~, THEREFO'CRE, on behalf of the Pr~esidelt; of the UnitedZ
States, I[, H-ugh S. Johnson, Adm~inistr~ator for Indulstrial Recovery,
pursantto uthrityresed n m byExecut~ive Orders of the Pres-
ident, includcingi Executive Order N.64-,dtdDcme 0
1933! and otherwise ; do hlereby incorporate by referecnc~e said annexced
report and do find that saidl Cocde complies in. all respects with the
pertinent provision~s andi will promote the policy and(- purpo'es of
saidl Title of said A~ct; and do hereby order that said Code of F'air
Competition be and it is hereby approved.
HUG;H S. JoHNSON,
Admzinistra~frt~or o Indcus~trial Recovir~y.
Approval recommended :
H. O. KINo,
Division A d m in~istrator.
W~ASHINGTON, D.C1.,
M~ay 5, 1934.
56968*---544-27-34(1









REPORT TO TH~EE PRESIDENT


The PRESIDENT,
The White Hlouse.
SmR: This is a report on the H~earing on the Code of Fair
Competition for the Batting and ]Padding Inrdustry, conducted in
W~ashningtoln, DOC., on January 30, 1934.
In neeoc-rdanlcer wRith the customary proceduzre every per I'-on who
filed a request for appearance was freely heard in public, and all
statutory and regulatory r~equirme nts~lt were complied withl.
T'he Code which is attached, was pire-cinted~ by duly qulalified-
and authorized representatives of the ]Indtrcla.l l (limling~ to represent
80 pelr cent of the capacity of the Industry.
G;EN Elr AL CH~ARACTERISTICS OF TIHE INDUSTRY
This IndustryT includes the maanufacture of batts and pads used
in the uplholsteringg of automobile bodies, of furlniture, and in. thle
maanufacture of comforters and mattresses as well as for inlsulating
purposes. These products are man ~u fuetu Ired princ~ipally from cot-
ton, wvool, or o~t~hery reilient fibresf by7 pr'es;Singt them over garnletts
or cards.
Thiis Inidustry which is over 50 years old was originally developed
for the purpose of manufacturing malttrecss felts or batts for the
Mattress Industry. Since that time it has b>ecomeln useful in the
upholstering of furlniturle, while now over 50 per cent of the plrodlue-
tion of cotton batting is used by the Automnobile Inutyin the:
upholstering of automobile cushions.
In its processes, this Industry is related to the Dry Goods Cotton
Batting Indiustry and to thne WaddingT Industryr, alfllthough it is
larger than the other two, con,!sisting- of approximately 65 plants
Bh~~~~eaue of the rsilienc of the product it musti be pal~cked in
very loose bales or boxes, thus making storage of the pr~od~uct prac-
tically impossible. Further, if the product is permitted to tandl
for any length of time, it loses its resilience and becomes compact
by its own weigvht.
TChe peak periods in the Automobile and Fulrniture Indusl!tries have
a very definite effect in bringing about peaki p~eiriods in this In~du~t' str
PROVISIONS OF THE CODE
T~he labor provisions of this Code are similar in manB~y ways to
those of the Code of Fair Competition for the Bedding Industry3
because of thre fact that malny of the manufacturers of batting and
padding also malnufaucture products which go into the manufancturee
of mat-tresses.
Since many of these plants exist in textile cecnters~, the minimum~l
wPage ra~te in the northern section of the U3nitedr States is :3~~2
per hour while' in the southern. section. it is :300~ per hour as estab-
lished in the Code of Fair Com~petition for the Cotton Tex~tile
Industry.








Provisions relative to ma ximnum hours call for a wTork week of
40 hours with a maximnum of 48 hours p~ermittedl~ for 8 weeks during
any 6 months period, as a peak pIeriodl is necessary to the Indlustry
in view of the seasonal demand f;romll the Aultoo0bilee and Furniture
Industries as described above.
Because of unfortunate conditions~r which have existet' within the
Industry during the past few year~, it has b~een1 found necessary to
include certain pr~ovisions prohib~itingr the use of second handl ma-
terials, which has been an ups~etting factor thrIoughou1t the Industry
for some t~ime. Certain other prov~isionss are includled relative to
Trade Practice~ s within the Industryi which it is felt desirablle to
include to aid in stabilizing the Ind'usitr~y.
IFINDINGS
The D~ep-uty Admninisttorao in hnis final report to me on s7id~ Code
having foulndl as herein set forth and on the basis of all the pro-
ceedtingrs in this matter;
I find that:
(a) S~aid Code is wcell designed to promote: the policies and pur-
poses of Title I of the N)ational IndustrinI Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to dimlinish the amlount thereof and will pro-
vide for the general wnelfar~e by promot~ing the orgaanizationl of indlus-
try for the purpose of coojperst~ive action among the trade groups,
by inducing and maintaining united action of labor and mnagnne-
met~nt undler adrequate governmental sanctions and sup~ervisio~n, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing ucaigpoeb e
during and relieving unemployment, by improving standards of
labor. and by otherwise rehabilitating industry.
(b) Said Industryr normally employs not more thnn 50,000 emn-
ployees; and is not classified byl me as a major industry.
(c) The Code as approved complies in all respects with the
pertinent provisions of said Title of said A8ct, including wFithout
limitation Subsection (a) of Section :3, Subsection (a) of Section 7,
and Subsection (b) of Section 10 thereozf; anl thiat the applicant
association is an industrial association truly~ representative of the
aforesaidl Inidustry; and that said association Imposes no inequitable
restrictions o-n 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 andi will not operate to discrimiinate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heardl prior to approval of said
Code.
For these reaponls. the Code has b~een approved.
Respectfully,
'ITJUGH- Q. OH NIISON,
Ad min ist rator.
MAY 5, 1934.












CODE OF FA~cIR COMS1PETPITION FOR THE, BATTING AND3Z
PADD)ING~ INDUSTRY

AnnousE I[--PUTRPOSE

To effectuate the policies of Title I of the National Industrial
Recovery Act, thie followsPing provisions are established as a Code of
Fair Competition for the Battingc and Paddling Industry and shall
be the standard of fair competition for this Industry, and shall be
bmnding upon every member the~reof.
ALRTICLE II--DEFINITIONS

1. The term Industry as used hnerein. means anld inrcludes the
manufacture and primary sale of batts and pads, which are ujedl
pr~imnarily by the purc~ha-er to ulpholster automobile b~odies, to up~hol-
ster furniture, andr for insulating purposes, as well as in the mnanu-
fa~turer of comforters andl mattresses, and other production so filed.
These batts and pads: are manufactur~led p~rincip~ally from. cotton,
wool, or other resilient fibres, or malterials~, processed over garnett
machines, cords`1, or stuffing machines for resale purposes.
2. Thec ter~m "Atssociation as applied to the Industr~y means the
Associated Batt~ing bManl~cufactrer of the UTnited States.
3. Thet term "L Scecretar~y m~ieans the Secretary of thne Association.
4. The term "L member of the Industry includes but without limri-
tation any individual, pasrtnership, association, corporation or other
form of enterprise engaged in the Industry as: above definedl, whether
as an empnlloyer or on his own behalf.
5. The terml employee "' st usedC herein includes~c annyne. engaged
in the abovc-derfined Industry inl any capacity receivingf compensa-
tion for his services, irrespective of the nature or met~hod of payment
of such compensation.
6., The9 term employer as ulsedl herein includelts anyone by whomi~
n7y. such employee is comlpensated or employedl in this Industry.tz
7. heters President ", "A~ct", and "Administ rator used
herecin neanl, respectively, t~he President of the Uinited States, Title
I of the National Industrial Re~covery Atct, and the A!~dminisf'rator for
Industr~ial 1Recovery.
ARTICLE III-HIouns

1. NJo employee shall be permittedl to work in excess of forty (40)
hours per w~eeki except that- for eight (8) w~Feeks during any six (6)
months' period employees may be permyt~ted to wvork~ forty-eight (48)
hours per week. The foregomng provisions do not apply to:
(al) Outside salesmen, or mpl~loyees engaged in emer~gency main-
tenan~ce or emergency repafir' w7Cork, or pe~rsonS emlployred in a mana-
grer~il, supern~vsory, or executive capacity wcho earn not less than
thirty-fve($35.00~) per weerk.








(b) Firemen, engineers, cleaners, trucks dr~iver~s, and shippinng
crews wh7o mayV be! permnitte~d a ten per cenlt (10%~) tolerance over th~e
hours specified.
(c) Wlatch~men who shall not be p~ermittef ~to work more than
fifty'-six (56) hours a wveek.
ARTICLE IV-17GES
1. No employee sh~all be paid at less than the rate of thirty-two and
one-half centsi (32!2C) per hour in the N~orthern. Seclt ion of the
U~nitedl States, nor thirty cents (30$) per hour in the South~ern
Section of the Unmited~ States.
(a) The Soluthern Section is defined as comprising North Caro-
lina, Sout~h Car~olinn, Florida, Geor~gia, Alabama, Tennessee, Miissis-
sippri, Arkansas, L~ouisiana, Oklahoma, Texas, and Virginia; and the
Northern Section is defined to include all other states in the United
States proper including the District of Columbia.
(b) Learners without previous experience in this TInduLst'y may
be employed at a minimum wage rate of eigfhty- pe~r cent (80%~) of
the mlinimnum wage rate pres~cribed by this Alrticle provided that the
period of learning shall be not more than thirty (30) days, and pro-
vided further, that the Iunumber of such learners shall, at no time,
eic~eed~ five per cent (5%~) of the total employees in any particular
plant in this Industry; prlovidedl, further, that no employee may
serve more than. one learning period within this Industry.
2. A person whose earning capacity is limited because of age,
physical or mental handicap, or other in~firm~ity, may be emplloyedl on
light work at a wage below the minimum established by this Code,
if the employer obtains from the State authority, designated by
the: U. S. Department. of Labor, a cer~tificate authorizing such per-
son's employment at su~ch wages and for such hours as shall be stated
in t~he certificate. Such authority shall be guided by the instructions
of the U7. S. Department of Labor in issumng certificates to such per-
sons. Each employer shall file monthly with the Code Authority
a list of all sulch persons emlployed by him, showing the wages paid
to, and the mia imnum hours of work for such employee.
3. This Article establishes a minimum rate~ of pay, which shall
apply irrespective of whether an employee is actually compensated
on a time-rate, piecework, or other basis.
4. Rates of pay in excess of t~he minimum h~ereinbefore, prescr~ibed2
shall be equitably adjustedl in order to preserve equ~itable differen-
tials. All such adjustments made since June 1, 1933, shall be rec-
ported to the Codee Aut~hority.
ARTICLE Yr-GCENERA\L LBOR PROVISIONS
1. On and after the effect~ive dlate of this Code no employer shall
employs anyone under t~he age of sixteen (16) years, nor anyone
under eighteen (18) years of age at op~eratioons or occupations haz-
ardous in nature or dangerous to health. In any state an employer
shall be dleemedl to hiave complied with this provision if he shall
have on file a cer~tificate or permit dluly issued by t~he Aut.hority in
such state empow~eredl to issue employment or age certificates or
permits showing that the emp~loyee is of the r~equjired age.









2. In c~omp~i lance writh S~ctioln 7 (a.) of Title I of the Act:
(a) Employees shall have the right to organize and bargrain
collectively through representatives of their own choosing, and shall2
be free from the inter~lference, restraint, or coe~c~ion of employers of
labor, or their agents, in the designation of such representatives or
mn self-orgatnization1 or in otherl con~lc~ertedl activities for the purpose
of collective bargaining or other mutual. aid or protection.
(b) No employee andi no one seeking employment shall be reqluir~ed
as a condition of empllloyment~l to join any company union, or to
Iefruain from, joimng, orgafnizing, or assisting a labor organization
of his own choosing, and
(c) Emp~loyers shall comply with the maximum hours of Inbor,
minimum rates of pay, and other cond)1itions of emp~Sloyment alpproved
or pr1escr1ibed~ by the Presid~ent.
3. Every employer- shall provide for thre safety and2 health of
employees during thne hours and at th~e places of their emuploy)ment.
Standards for safety and health shall be submitted by the Code
Authority to the Atdministradtor within six months after th~e effective
date of this Code.
4. No employer shall reclassify- employees or duties of occupations
performed or engage~ m any other subterfuge for the purposes of
defeating the purpose or provisions of the Act or of this ~Code.
5. Each. employer shall post in c~onsp~icuo~us places full copies of
Artic~les III, IV1, and `V of thisi Code, and such other Articles and: in
ncordlc~ ance with such regu~lations as are required by the Admin-
istranto.
ARTi.ICLE: VI- Aomm~I NISmaRrowI:

1. To further effectu~ate the policies of the ALct, a Code Authrority:
r~epresentinlg said Industry is hereby constitulted to cooper~ate with
the Admciini tratoro in the administration. of this Code.
(a) The Code A~uthority shall consist of five (5) members, four
(4) emlbers.- to be elected by and from the m~emnbrs of thle Associa-
ton, and one (1) to be elected byT and fr~ol the .nonl-muembers. Thle
method of election shall be approved bly the Admuinistrator.
(b) The Aldminzistrator mnay appoint not more than three (3)
mem~bers without vote or expeinse to the Industry to represent the
Administrator on the Code Authority.
(c) The Code A"uthority shall be elected within twenty (20) days
after the app)31roval of this Code.
(d) Ifthe reprsenlt~tativ~ of the non-mnember group to the
Code Authority is not elected within twenty (20) days after the
approval of the Codle, the B~oard of Direcltors of the Association
mnay elect a mnemlber1 to the Code Ai~uthorrity to ~fill that place, subject
to the approval of the Administrator.
2. Each trade or indusitr~ial asso~-ciat~ion directly or indirectly par-
ticipanting~ in the selection or activities of th~e Code Authority shall:
(1) Im~pose no ineqluita~ble res.itr~ictions on membership, and (2)
submit to the Admlinistratorr true copies of its articles of association,
by-lawcrs, regulations, and any amnendmentst when mlade thereto, to-
gecthler w\ithl such o-ther information as to membership, organization,
andt activities as the Admninistrantor mna deem necessary to ef~ectuate
the! purposes of the Act;.









3. In order that the Code Authority shall at all times be truly
rprevseontai of the Inut, rhy andl in. other respects comply witht
theproisins f te At, heAdministrator miay prescribe such
hearings as he may deemi proper; and thereafter if he shall find
that the Code Authority is not truly~ representative, or dfoes not in
other respects comply wFith th~e provisions of th~E Act, may reqmrle on
appropriate modification in the method: of selection ofth ode
Authority.
4. M~ember~s of the Industry shall be entitled- to participate in
andc share~i the benefits of t~he activities of the Codle A~ut~hority antd
to participate in the selection of the memberss thereof, as provided
in Section 1 (a) of this Article, by asaenting to andl comlplying w-ith
the requirements of this Code and~ sustaining their reasonable share
of the cost and expenses of its administrationn. Such reasonable
shrar~e of the expenses of administration shall be dletermlined by the
Code Authlority, subject to approval by the Administrator, onl the
basis of volume of business and/'or suchl other factors as may be
deemed equitable.
5. iPower~s anzd D2uties of the Code! Aulthoritiy.- Theh Code Autor-
ity shall have the following further powrers andl duties:
(a) To insure the execution of the provisions of this Code andl
toj provide, subject to rules andc regulntion~s establishled by the A~d-
ministrator, for t~e. compliance of the Industry wsJith the provisions
of the Act: providedl, however that this shall not be construled to
deprive duly aulthorized gaovernmlental agencies of their power to
enforce the provisions of this Code or of the Act.
(bi) To cooperate. with. the Akdminristra-tor in making investigations
as to the functioning and observance of any provisions of this Cade
at its own instance or on complaint of any person affected and shall
report the same to the Admiinistrator.
(c) To make recommendations to the Administrator for the co-
ordination of the Admninistrationn of thiis Code with such other codeis,
if any, as mayv be related to the Industry.
(d) Subject to thle approv-al of the Adlministrator, to assess upon
members of the Industry an equitable andl proportionate share of the
reasonable cost andl expenses of maintaining the Code andl the activ-
ities of the C'ode Authority, wh'Iich1 amount shanll be panid by each
member of this Industryl.
(e) To obtain from members of the Ind~ustry suchI information
and reports as are required for thze administration of the Code andl in
addition to information required to be submitted to any Code Authlor-
ity, all or any of thle persons subject~ to this Cod~e shlla furnish such
statistical information as the Admninistrator may deeml necessary for
the purpose recited in Section 3 (a) of th Act to such Federal and
State agencies as the A~dm-inistrator may designate; nor shall any-
thing in any Code relieve any person of existing obligations to
furnish reports to government agencies. No individual reports shiall
be disclosed to anyl member of the Industry or any other party- except
to such governmental agencies as mnay be directed by the President.
(f) To determine how tare shall be dealt with in selling its prod-
acts, subject to the approval of the Administrator.








(g) To determine the basis of future sales, subject to the approval
of the Administrator.
(h) TCo select a committee to set up standards for products of
the I~ndustry which shall be the standards for the Industry subject
to disapproval by thze Administrattor.
(i) TCo present, to the Admninistrator from~ time to time recom-
mendations for modification of this Code, base~cd on conditions in
the Industry as they may develop, which will tend to effectuate~ the
operation of the provisions of this Code.
(j) To cooperate with the Adm~inistrantor in regu~latingi the use
of any Nationmal Recoovery Ar-dministration Code Insignia solely by
those members of the Industry who are complying with. this Code.
6.~ Any member of thne Industry shall have the right to appeal to
the Administrator, under such rules and regulations as he may
prescribe, in respect to any rule, regulations, or other course of
action, issued or taken by the Code Authority.
7. Nothing contained in this Code shall constitute the memrl~bers of
the Code Aunthority or members of the Association partic~ipnt~ing in
the activities of the Code Authority partners for any purpose. Nor
shall any member of the Code Authority or members of the Associa-
tion participating in thne activities of the Code Authority be liable
in any manner to anyone for any act of any other member, officer,
agent, or employee of the Code Authority hereinbefore mentioned.
Nor shall any member of the Code Authoriy exercising reasonable
dligence in the conduct of his duties hereunder, be liable to anyone
for any action or omission to act under this Code, except for; his
own diillful2 misfeasance or non-feasance.
8. If the Administrator shall determine that any action of a Code
Authority or any agency thereof may be unfair or unjust or contrary
to the public interest, the ~Adminlistrator may require that such. action
be suspended to afford an opportunity for investigation of the merits
of such action and further consideration by suchn Code Authoritly
or agency pending final action which shall not be effectiv-e unless t~he
Administrator approves or unless he shall fail to disapprove n after
thirty (30) days' notice to him of intention to proceed with such
action in its original or modified form.
A~nrcraF VII-TRADE PRACTICEs
1. Within thirty (30) days after the effective date each member of
the Battingr and ]Padding Industry shall register with th~e Code~
ALuthority- all garnett machines, cards, or stuffing machines used for
the manufacture of Batting and Padding for resale, existing in his
factory, or factories, or on order with~ manufnecturetrs, or in process
of being ma~rllnfc~turedd onl January 1, 1934.
TERMS
2. Terms shall not exceed thirty (30) dlays net from date of in-
voice, or net t wenty3-fifth proximno. No cash or trade discount shall
be allowed, except- l as provided in Section 7 ~of Art~icle VIII permlit-
ting reasonable dli ffeIr i t ials for qua~ntity if fixedl at the time of the
sale.








ARTICLE VIII-UNAIR TRADE PRACTICES

The following practices const~i~tute unfair methods of competition
for members of the; Batting Iand Paddtingr Industry and are
prohibited :
1. Using of second-hand or previously used cotton in the mannu-
facture of batts.
"C Previously usedT cotton is defined to mean any cotton whichlr hats
been mnunrfactured and used for the purpose for which it was manu~-
facturedl, orr used for any otherl purpose. This provision does not
apply to manchest~er, burlap or jute bagging~r, sisal, or to: be steritizedl
wool, but prohibits the use of all second-hand material such as might
be reclaimed fEro~m comforters, mat~tresses, bedldingr of any kind, o~cld
-rutomobile upholstery, old upholstered fur-nitur~e, or the likre.
In every place where balttmg is made, the owners or their agents
shall -permit their plants (or portion of their plants); to be inspected
by any authorized agent of the Code Authority representative for
this Indlustry' in order to satisfy the Code Author~ity that' the pro-
visions of this Section, are being com~pli~ed with.
2. Mhalfeacsanc.-Resor~t ing to an~y methoods of sale which will con-
stit~ute ans evasion or violation of any Tradle PIractice set, forth herein.
3. Rebatesf.P-Di;ret~ly offe~ring or makngnt for the pu!rpose of in-
fl~uencing a sale, anzyr pamnpllt or allowance of a, gift, r~ebate, refund,
commlission, credit, unlearned dlisc'ount, or excess allowance, whether
in thle formn of" money or otherwise. Nor sh~all any member of the~
Industry, for the purpose of inffluencing a sale, offer or extecndr to any
customer any special service or privileges
4. False Bi77llg.-Knowingly wgithhold~ing fromt or inserting in
any quotation or: invoices a~ny statement tha~It makes it innecurate in
any maiterial particular.
5. Postdating an Predarting quotations.--Postdating~ andr~ pr~etat-
ing orders, invoices, statements, or other sales documents.
6., Repudcia tin g Contracts.---Repu diati ng contracts by sel le rs on
a rising rmarkret, or permittingr buyers to repudiate onl a ctCclining~
market.
7. Retrloactiille QuantlitU DiscoullntS.- GraI'8nting a, retractnfive dis-
count or rebate based on culmulative qu~antities purchased ovr a givgen
period. This shall not be con~t~rued~ so as to prohibit reasonable
differentials folr quantityr if fixed at the times of the sale.
8. Sales Conltractc~s.-Makling a sales contract or purchase contract
which is not equa~lly binding on both palrties regardlless of pr1ice
fluctuations.
9. Trade A cceptan~ces.-Acce pting a "' Tradle A cceptan-ce or note
inl settlement, of any accounts due, unlessj surch ac~ceptanlce or note
hears a rate of interest of not, less than six pecrcnt (6%l) per annum
from the. date the invoice is due, pr~ov~idedl this isj not in. convict w\ithi
any State Law r-egarding such practice.
10. G~uarant~eeinlg Aler)chanldise.-Gu Ia ranItee~inf mear ch andC1is e
against a dclcine in price.
11. Selling a purchaser his requrirements for any givern period
without sipecifying a definite quantity andr a definite price.








ASRTICLE IX-AiLES RELOWV COST

I~t is hlerby declared to be the policy to be followedl by- all members
of the Industry to refrain from. destrulct~ive price cutting. It is
agreedt to be to the best inltelests of the consumer, the individual
ma: 1 nufc tur Ier, and also that of his employees, and prod uctive of ithe
greatesltt, possible economic recovery for all members of the Industry
to avoidr t~he de~stllltru'cti economic? walste, casedr by selling belowo
cost.
The Code Acuthority may adopt, as soon as pra~ct~it-nble, either a
uniform cost accournting~ system, a reasonable and appropriate sys-
tm1 for the interchange of pr1ice lists among members of the Indus-
-try, or a system for dletermllinin~ stanldard~ minimum costs. The
system so adopted shall be bindling on all members of the Ind~ustry,
when aprljloved~ byr the Administrator. Only a -violation of suchl
approved system shall be basic~ for complaint to any grlievance
cnunillittee: under this Article.

ARTICLE X-M\ODIIFICATION

11. This Code and all the provisions thereof are expressly made
subject to thte right of the President, in accordance with the pr~ovi-
sions of subsection (b) of Section 10 of the National Industrial
Recovery Act, from time to time to cancel or modify any order,
approval, license;, rule, or regulation issued under Title I of said
Act and speci~fica~tlly, but without limitation, to the righlt of ~the
1President to cancel or modify his appr~oval of this Code or any
conditions imposed by him upon his approval thereof.
2. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances,
such modification to be based upon application to the Administ~rat~or
and such notice and hearing as he shall specify, and to become
effective on approval of the Administrator.
ARTICLE ~XI

No provision in this Code shall supersede any Stat~e or Federal
law~ which imposes onl employers more stringent requirements than
are imposed by this Code.

ARTTICLE XII-MONOPOMt~0~ s, EIY.

No provision of this Code shall be so applied as to permit
monopolies or monopolistic practices, or to elimlinat~e, olppre~ss or
discriminate against small enterprises.
ARTICLE XIII-SPIcLBL AGREEMENTS

Reasonable notice of the submiission of any agreement authorized
to be submitted to the President by virtue and under authority of
Section 4 (a) of the Act shall be given to thec~ Code Author~ity by
any member of th~e Indlustry3 who proposes to make such agreement.






11

AnnimanE XIV7--EFFECT'IVE DATE

This Code shall become effective on the second M~onda~y after its
approval and shall continue in effect during the period of the
National Industrial Recovery Act.
Approvedl Code No. 417?.
Registry No. 221-~1-02~.

O




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