For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Registry No. 1698--04
,grs WI 9O OUR PART
The Code for the Loose Leaf Manufacturing Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
WASHIINGTON : 1033
NATIONAL RECOVERY ADMIINISTRATION
PROPOSED CODE OF FAIR COMPETITION
AS~ISUBMITTED ON SEPTEMBER 6, 1933
CODE OF FAIR COMPETITION FOR THE LOOSE LEAF"
SECOND DRAFT AUGUST 17, 1933
To effectuate t~he policy of Title I of the National Industrial
Recovery Act, the following provisions are established as the
National Industrial Recovery Code of Fair Competition for the
Loose Leaf Manufacturing Industry.
The term "L Loose Leaf Manufacturing Industry ", as used herein,
is defined to mean the manufacture of loose-leaf devices and supplies.
The term person ", as used herein, shall include natural persons,
partnerships, and corporations. The term member ", as used
herein, means any person who shall have signified his or its assent
to this Code. The term Executive Direct~or ", as used2 herein, shall
mann the nperon then holdings the position of Executive Director of
the Loose Leaf M/anufacturers Institute. The term "' employer ", as
used herein, shall include every person promoting or actively engaged
in the manufacture for sale of loose-leaf devices and supplies. The
term employees ", as used herein, shall meanI all persons directly
engaged in production of the products of said industry. Thze term
"L effective date ", as used herein, is defined to be the second Mlonday
after the date this Code shall have been approved by the President.
ARTICUS TI--B[MEBERSHIP IN THE CODE
The Loose Leaf IManufacturing Industry imposes no inequitable
restrictions on membership in this Code. All manufacturers of
loose-leaf devices and supplies in the United States, regardless of
size or form of organization, are invited to become members of t~he
Code and to have a voice and to participate equitably in the admiin-
istration thereof and in the promotion of industrial recovery anid
may become a member by signing the form set forth at the end of
ARTICLE III-V~iOTIN'G PRIVILLEGES
SECTION 1. Each member shall, prior to the first meeting of the
members of this Code, or upon his assuming membership therein,
certify to the Executive Director under oath, the total net wholesale
value of domestic shipments of all loose-leaf devices and supplies for
the calendar year preceding the date of such meeting or election to
SEc. 2. The voting power of the members of this Code shall be
determined as follows:
A Class A member is one the value of whose shipments, as defined
in Section 1, is less than one fifth of the highest value reported by
any member for such year. Each Class A. member shall be entitled
to one vote.
AI Class B member is one the value of whose shipments thus
reported is more than one fifth, but less than two fifths, of such
highest value reported. Each Class B member shall be entitled to
A Class C member is one the value of whose shipments thlus
reported is more than two fifths, but less than three fifths, of such
highest value reported. Each Class C member shall be entitled to
A Class D member is one the value of whose shipments thus
reported is more than three, fifths, but less than four fifths, of such
highest. value reported. Each Class D member shall be entitled to
A Class E member is one the value of whose shipments thus
reported is four ffths of the highest value, or more. Each Class E
member shall be entitled to five votes.
The Executive Director shall certify to each member his designa-
tion of the class of such member, but. shall make no disclosure of the
specific data upon which such designation is fixed.
ARTICII IVT-ADMINISTRATION OF THE CODE
For the purpose of effectuating the policies of Title I of the
National I~ndustrial Recovery Act and of securing the execution and
enforcement within the industry of the provisions of this Code of
Fair Competition, there shall be a Code Committee elected by and
from the representatives of the members of this Code. Such Code
Committee is invested with such powers and functions as may be
necessary for the proper administration of this Code and is responsi-
ble for such administration. It may prescribe and require the
keeping of such records and accounting mlethodls by the members of
this Code as will facilitate the effective administration thereof. It
may require periodic written reports from the members, containing
such information as the Committee may deem necessary in the
premises. It may make or cause to be made investigations into the
operation of the Clode. It may make such rules and regulations, and
exercise all such other powers, as may be necessary to administer thle
Code, pursuant to the provisions of the National Industrial Recovery
Act.. It may delegate such powers as it shall deem expedient to
persons, agents, or committees designated by it. In the event that
the members of this Code shall fail or omit to elect such Code Com-
mittee, the members of the Executive Coommittee of the Loose Leaf
Manufacturers Institute shall act as such Code Committee. The
National Recovery Administration is expressly authorized to de~pu-
tize the Code Comlmittee named herein and/or the Executive Director
to do and perform such acts as may be necessary to carry into effect
the purpose and intent of this Code.
AnTICiaE V--EXPENSE Or ADMrINISTERING CODE
The expense of initiating and administering this Code shall be
borne by the members. Such expenses shall be apportioned equitably
among such members by the Code Committee. The apportionment
may be made on the basis of sales in the United States by such
members for a specified period of time, or upon such other equitable
basis as the Code Committee may determine.
ARTICLE VI--Houns or WiORK
SECTION 1. On and after the e~Fective date, employers in the Loose
Leaf M~anufacturingr IndustryT shall not operate in their manufac-
turing operations on a schedule of hours of labor for their employees
directly engaged in the production of merchandise in excess of an
average of forty hours per weekr per shift during any six mlonthsl
period and shall not employ any person under 16 years of age.
SEC. 2. Office and salaried employees, except outside salesmen, ma-
chine and emergency repair-shop crews, engineers, electricians, fire-
men, supervisory staff', shipping? watching, andl cleaner~s, receiingr
less than $35.00 per we~ek. shall w5or~k not more than 48 hours in any
one week, andl not more than 1,0401 hours in anyr six months' period.
SEC. 3. In cRSE Of necessity, arising from an emiergency or from
t~he character of the work or' from the iinability to obtain compietenit
labor, permission mnay be granted by the Executive Commnittee, or
its authorized agent, upon proper showing being made, to exceed
the foregoing limitation, provided such permission shall be granted
only upon such conditions imposedl by the Executive Comnmittee, or
its authorized agent, as w~ill make certain that no employee will
work more than 1,040 hours in any six months.
ARTICLE VII -\fAGES
SECTION 1. On and after t~he effectiv-e date, the minilmumn wage t~hat
shall be paid by the employers in the Loose Leaf Mannufactur~ing
Industry to any~ of their employees dlirect~ly engaged -in the product-
tionn of merchandise shall be at t~he rate of 40 cents per hour for men
andl 30 cents per hour for women and that incid-ental labor and learn-
ers may be paid not less than 80%~ of such minimum wage, but the
total amount paid to such incide~ntal Inbor andc learners shall not
exceed in any calendar month 10%o of the total w~age to employees
directly engaged in producing merchandise..
SEc. 2. The mnirnimum wag~e that shall be paidl by emlployers in.
this industry to necount.ing, cler~icarl. office, and~ sales employ~ees--
except out~sidre salesmnenl- salnl b~e not less than $15.00 per week in
any city of over 500,000 population, or less than $14.50 in, any city
between 250,000 andl 500,?000 population, or less t~hanl $1.00 in any
city of between 2,500O andl i50,000) population, andl in towns of less
than 2,500 popullation, not. less than $12.00 per wseek.
ARTICLE VIIII--RIGHTS OF EMIPLOYTEES AND CONDITIONS OF
SCECTION 1~ .Employees~ shall have the rigrht, ton organize anld b~aranin
collectively through representatives of their ownl choosing, andr shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in t~he designation of such representatives or in
self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
SEC. 2. NO employee and no one seeking employment shall be re-
quired as a condition of employment to join any company union or
to reframn from joinmng, organizing, or assisting a labor organization
of his own choosing.
SEc. 3. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
SEC 4. It IS clearly understood that the foregoing paragraphs do
not impair in any particular the constitutional rights of employee
and employer to bargain individually or collectively as may be
mutually satisfactory to them ; nor does it impair the joint right, of
employers and employee to operate an open shop.
ARTILEr IX -PacE PUBLICATION
SECTION 1. Each member shall, within ten days after the effective
date of this Code, publish and continue to publish as changes are
made: (a) list prices for all its standard lines of loose-leaf devices
and supplies offered for sale; (b) the dates when such prices become
effective, which date shall not beless than ten days after date of
such publication, except in case of the first publication, which shall
show prices then in effect; and (c) discounts and terms allowed, or
net prices charged to various designated classes of customers.
SEc. 2. Publication as referred to in this Code shall not be deemed
fulfilled until a sufficient number of certified copies of the lists to be
published shall have been received at the offce of the Executive Di-
rector for his own use and for the requirements of the Code Com-
SEc. ;3. Failure t.o publish or to continue to publish, as changes are
made, any or all of the aforesaid information, or to publish false or
fictitious prices, discounts, or terms for any item so listed is an unfair
method of competition and a violation of this Code.
SEC. 4. NO special item of loose-leaf devices or supplies which is
not covered by the published list of prices of the member shall be
sold or offered for sale at net prices, discounts, or terms more favor-
able to the purchaser than the published prices, discounts, and terms
of any member of a stock item of comparable grade.
SEc. 5. The. Code Commnittee or thle Executive Director shall have
power on its or his own initiative or on the complaint of any member
of the Ciode to investigate any published price of any product filed
with the Executive Director by any member of the Code, and for the
purpose of the investigation thereof to require such member to fur-
nish such information concerning the cost of manufacturing such
product as the Code Commnittee shall deem necessary or proper for
SEc. 6. If the Code Committee or the Executive Director after
such investigation shall determine that such published price is an
unfair price for such product, having regard to the cost of manufac-
turing such product, and that the maintenance of such unfair price
mayr result in unfair competition in the Industry, the Code Com-
mittee or the Executive Director may require the member of the
Code that filed the list in which such unfair price was shown to file
a new list showing a fair price for such product, which fair price
shall become effective immediately upon the filing of such list. If
such member of the Code shall not within ten days after notice of
such determination by the Code Committee or the Executive Director
file a new list showing such fair price for such product, the Code
Committee shall have power to fix a fair price for such product,
which fair price, however shall not be more than the price of any
other member of this Code at that time effective for such product.
SEc. 7. The Code Committee may, for the purpose of executing this
Code and to insure fair competition, require each member to submit
to it or to the Executive Director specifications and samples of every
item offered for sale, and shall have the power to assign each of saidl
items to its proper classification.
SEC. 8. When an unsuccessful bidder feels that the successful bid-
der has quoted an unfair price, he may demand that the successful
bidder shall show the specifications and prices of the order to the
Executive Director, who shall determine whether any infraction of
the Code has been committed. The Executive Director shall have
authority to obtain from other bidders all information they shall
have concerning the work and their negotiations concerning same.
A-RTIC~LE X-UNFAR TRADE PaLSCrICES
The Code Committee may prescribe suchz equitable regulations and
take such action thereunder as will insure fair competition. Such
regulations will in all cases conform with the I[ndustrial Recovery
Act or any supplementary ruling issued by the President concerning
the application of said Act.
For all purposes of the Code the following described acts shall
constitute unfair practices:
A. Making or promising to any purchaser or prospective pur-
chaser of any product, or to any officer, employee, agent, or repre-
sentative of any such purchaser or prospective purchaser, any bribe,
gratuity, gift, or other payment or remuneration, directly or in-
B. Procuring, otherwise than with the consent of any member
of the Code, any information concerning the business of such mem-
ber which is properly regarded by it as a trade secret or confidential
within its organization, other than information relating to a viola-
tion of any provision of the Code.
C. Imitating or simulating any drawing, sketch, trade mark, or
brand used by any other member of the Code.
D. Using or substituting any material superior in quality to that
specified by the purchaser of any product as a means of price cutting
or usmng or substituting any inferior grade of material tending to
deceive the purchaser.
E. Canceling in whole or in part, or permitting the cancellation
in whole or in part of, any contract of sale of any product! except
for a fair consideration, or paying or allowing to any purchaser in
connection with the sale of any product any' rebate, commission,
credit, discount, adjustment, or similar concession other than as is
permitted by the Code and specified in the contract of sale.
1F. Dissemmnating, publishing, or circulating any false or mislead-
ing information relative to any product or price for any. product
UNIVERSITY OF FLORID)A
of any member of the Code, or the credit standrsing~. abjiit ~of :
any member thereof to perform any wr rmnfcueo rde
any product, or to the conditions of employment among: teen
plyes of any member thereof. .
G.cY Induc~ing or attempting to induce by any means any party to
a contract with a member of the Code to violate such contract.. '; :
H. Aiding or abetting any person, firm, association, or corpoira-'
tion in any unfair practice. .~
I. MIaking or giving to any purchaser of any product any guaranty
or protection mn any form against decline in the marrketi price of
J. Stating in the invoice of any product as. the date thjeerof Y;:d~ate;
later than the date of the shipment of such produc-t, or inclizding:
in any invoice any produce shipped on a, date earlier thian the.-dai~te
of such invoice.
K. Making any sale or contract of. sale of any prodnet under ashyg
description which does not fully describe such product in terms cuts.
t.omarily used in the Industry. .
L. Rendering to any purchaser of any product in or in coqnnecrtion
with the sale of such product any service, unless fair compensation
for such service shall be paid by such purchaser.
M. Selling below cost, as determined by methods approved by the
N. Any violation of any other provision of the Code (whet-her or
not therein expressed to be such, or using or employing anypctc
not hereinabove described which the Code Committ~eU~Pe salhv
declared to be a practice that would tend to defeat the poicy of -
Title I of the National Industrial Recovery Act and, therefore, an
unfair practice, and of which determination by such Committee,
the Execut~ive Director shall have given notice to the members of the
Code and to the President.
ARTICLE XiI.-GENERAL PROVISION
SECTION 1. Mlodiffea~tion of Cod~e.--This Code, or any of its pro-
visions, shall be canceled or modified, and any approved rule issued
thereunder shall be ineffective to the extent necessary to conform to
any action by the President, under Rule 10 (b) of the National In-
dustrial Recovery Act. in cancellation or modification of any order,
approval, license, rule, or regulation pertaining thereto.
SEC. 2. ITO/oltOn. of Code.--Violation of any of the provisions of
this Code, or any of the rules and regulations established thereunder
by any' person, is an unfair method of competition, subject to the
penalties provided in the Na.tional Industrial Recovery.Act.
SEC. 3. An7z8en@??I-8??? f0 Code.--This Code may be amended by a
two-th~irds affirmative vote of the members of this Code, provided
that the amendment is approved by the Code Conunittee and the