Code of fair competition for the retail jewelry trade


Material Information

Code of fair competition for the retail jewelry trade as approved on November 27, 1933 by President Roosevelt
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1 p., 517-533 p. : ; 23 cm.
United States -- National Recovery Administration
U.S. G.P.O.
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Jewelry trade -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


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Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Approved Code no. 142."
General Note:
"Registry no. 1631-11."

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University of Florida
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aleph - 004921293
oclc - 31966565
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Full Text

_ I


,rr 0, O = 1. Exes utive Order
2. Lett r of Transmittal
U.S. DEPO~tT W. Cod.

Bor sale by the LSuperintendent of Documenla, asehington, D.C. - Price 5 renta

SApproved Code No. 142

Registry No. 1831--11










This publication is for sale by the Superintendent of Documents, Government
Print~ing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
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Approved Code No. 142



As Approved on November 27, 1933

Executive Or1d er

An application having been- duly made, pursuant to a~nd in full
compliance withh the provisions of title I of the National Industrial
Recovery Act? approved June 16th, 1933, for my approval of a Code
of Fair Competition for the Retail Jewelry Trade, and hearings
having been held thereon and the Administrator having rendered
his report containing an analysis of the said code: of fair competition
together with his recommendations and findings with respect thereto,
and thle Administrator having found that the said code of fair com-
petition complies in all respects with the pertinent provisions of title
I of said act and that the requirements of clauses (1) andi (2) of sub-
section (a) of section 3 of the said Act have been met:
NOWl, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16th, 1933,
and otherwise, do adopt and approve the report, recommendations
and findings of the Admninistrator andl do order that the said code
of fair competition be and it is hereby approved.
Approval recommended :
Admdlin st rat r.
NVovemrrberl 7, 1933.

23791*--244-110 33

NOVEMBER 17, 1933.
The IT'hite House.
S~: This is a report of the Hearing on the Code of Fair Competi-
tion for the Retail Jewelry Trade conducted at the United States
Chamberr of Conmmerce, on Novemiber 10, 1933, in accordance with the
provisions of the National Industrial Recovery Act. The Ciode which
is attached was presented by duly authorized and qualified repre-
sentatives of t.he Trade, complying with the statutory requirements,
said to represent approximately 3,500 retail jewelers or 805'o in num-
ber and 95fo in volume of sales of the Trade.


Complete statistics on the Retail Jewelry Trade are contained in
the Census of Retail Distribution, 1930, conducted by the United
States Departmnent of Conunerce, Bureau of the Census.
According to this source there were in 1929, 19,998 retail jewelry
establishments, which figure includes a large number of single
proprietorships, service and repair establishments. The Jewelers'
Board of Trade, New York, New York, states that it has credit
ratings~ for only 12,000) jewelers in t~he United States, with a mer-
chandlise inventory of $1,000 or more., which would indicate that
approximnately 410% of those classified as retail jewelers carry inven-
tory of less than $1,000.
According to the Census figures the total net sales of retail jewelry
establishments were $536,280,697 in 1929. Sales in 1932 are esti-
ma~ted to have been anoroximately 70%b less than in 1929.
The number of employees in the retail jewelry establishments
included in the Census are given as follows:

NTum7ber of Emrploy/eeS, 1D99
Full t ime._ __----_------ ----- --------,------------- 38, 273
Part time _______-,- ----- --------------------. 7, 321
Total_ ___ .. ---- __ .. .... 45,594
Proprietors and frirm members not on pay roll .. ...._ 19, 982
It is estimated that the number of employes in 1932 was ap~proxi-
mately 2570 less than the number in 1929.


Laborl Provislioni/~s.- The hour and wage provisions of t~he Code are
sulbst~antially the s~ame as those adopted and approved in thle Code of
Fair Comupetition for t~he Retail Trade. The only departures fromt
the Retail Code are as follows:


(1) A more elastic provision for the reduction of store hours for
the summer months to conform with the practices in the Trade.
(2) A slightly more elastic provision for peak periods to allow
for peculiar requirements of the jewelry trade.
(3) A provision for suspension of maximum store hours in cases
of emergency or to allow the completion of a, transaction with a
specific customer.
(4) A departure from the provisions of the Retail Code regardling
the limitations upon number of persons working unrestricted hours
to allow for one additional worker emnployed in a managerial capacity
to qualify under this section.
It is expected that improvement in employment conditions similar
to that resulting from the Retail Code will obtain under this Code.
Adm inistr~a. ion .--Admi ni station of t he Code is to be accom plishe~d
by a National Code Authority and local committees w~hic~h sha11
cooperate with the Code Authority administering the Retail Code.
Provision is made for reports to the Administrator and investiga-
tions by the Code Aut~hority of trade problems which may arise.
Trade Practices.--Trade- Practice provisions of the Code are un-
usually excellent and eminently fair. The provisions are designed to
establish a common terminology and a definite set of standards or
measures for the Retail Jewelry Trade, and to prohibit a number of
parasitic and deceptive practices in the trade. The clauses supply a
much needed and heretofore lacking common standard of quality and
terminology to be used in the trade and griving a uniform measuring
rod for the testing of retail jewelers' wares and practices.
The enforcement of the trade practice provisions should result in
extra high standards of competition in this Trade wvit~h the conse-
quent protection of the interests of the consumiingf public.
I find thlat---
(a) This Code complies in all respects with the pertinent proni-
sions of Title I of the Act, including without limitation subsection
(a) of Section 7 and subsection (b) of Section 10 thereof.
(b) The American National Ret~ail Jewelers Association to be
truly representative of the Retail Jewelry Trade. The By-laws of
this Association provide no inequitable restrictions to membership.
(c) The Code Is not designed to promote monopolies or to elimi-
nate or oppress small enterprises and will not operate to discriminate
against them and will tend to effectuate the policy of Title I of the
National Industrial Recovery Act.
-I recommend that the Code be approved.
Respectf ul ly,
Hoca S. JoHNsoN,


To effectuate the policies of Title I of the National Industrial
Recovery Act the following provisions are established as a Code of Clompetition for the Retail Jewelry Trade.

1. Retail JEwel~ry Trade.--The term retail jewelry trade as
usedC herein s~hall mean all selling to the consumer, and not for the
purpose of resale in any for~m, of jewelry as defined herein or services
or repairs to jewelry, in the continental United States, excluding the
Panama Canal Zone.
~2. Retail Jewealer.--The term retail jeweler as used herein shall
mean any individual or organization engaged wholly or partially in
the retail jewelry trade.
3. Retail Jewcelry Establis~hment.-The term retail jewelry es-
talblishment as used herein shall mean any store or department of
a store engaged in the retail jewelry trade., but shall not include
stores or departments in which the principal business is the selling
at retail of products other than jewelry, or services or repairs to
jewel ry.
4i. Jewvlrl.-- The termn jewelry as used herein shall mean dia-
mionds and other precious and semiiprecious stones, pearls, cultured
pearls, synthetic stones, and any imitations of any of these articles,
articles for personal wear and adornment of any character whatso-
ever commonly aind commercially known as ''jewelry ", watches.
clocks, silverware, goldware, and precious metal were of the plati-
num group, and wares plated wvith anlY of the precious metals.
5. Eploee.The erm" eploee 'as used herein shall mean
any person employed by any retaijelrbushlnoicud
persons employed principally in the selling at retail of products not
included within the definition of retail jewelry trade.
6. Definiti~onls of Personnel.--(a) Executive: The term execu-
tive as used herein shall mean an employee responsible for the
management of a business or a recognized subdivision thereof.
(b) Profe~ssional Person.--The term professional person as
used herein shall mean lawyers, doctors, nurses, research technicians,
advertising specialists, and other persons engaged in occupations
requiring a special discipline and special attainments.
(c) Outsaide Salesmlen..-The term outside salesmen as used
herein shall mean a salesman who is engaged not less than sixty (60)
percent of his working hours outsidee the establishment, or any
branch thereof, by which he is employed.



(d) Outside Collecto.--The term outside collector as used
herein shall mean a collector of accounts who is engaged not less
than sixty (60) percent of his working hours outside the establish-
ment, or any branch thereof, by which he is emiployedl.
(e) Wfatchmlen anid Guardcs.--The t.ermls watchmen '" and
"' guards as used herein shall mean employees engaged primarily in
watching and safeguarding the premises and property of a retail
(f ) Store Detectivle.--The termi store detective as usedi herein
shall mean an emnployee engaged exclusively in detective work.
(g) llaintenan~rce Em/ployce~.--The term manintenancc e employee "~
as used herein shall mean an employee essential to the upkeep, and/or
preservation of the premlises and proper~ty of a retail establishment.
(h) Outside Servi~c~e Empl~oye.--The termi outside sernece em-
ployee as used herein shall mean an employee engageed primarily
in delivering, installing, or servicing mer~chandcise outside the estab-
lishment, and shall include stable and garage employees.
(i) Junlior Emnployee.--The term junior employee as used
herein shall mean an employee under eighteen (18) years of age.
(j) Apprentice Employee.--The termi apprentice employee "' as
used herein shall mean an employee with less than six (6) months
experience in the retail Jewelry trade.
(k) Part-timne Employee.--The termi part-time employee as
used herein shall mean an employee wh~io works for less than the
maximum work week.
7. Southi.--The term South as used herein shall miean V'irginia,
West Virginia, M~arylandl, North Carolina, South Clarolina, Georgia,
Florida, Kentucky~, Tennessee, Alabama, 10ississippi, Arkan~sas,
Louisiana, Oklahoma, New M~exico, Texas, and the District of
Colu mbi a.
8. Pop uart ion.--Population shall1 be detterm ined by re ference to
the Fifteenth Census of the United States (U.S. Department of
Commerce, Bureau of Census, 19306).


The effective date of this Code shall be the second 1\Ionday after
its approval by the President of the U~nitedl States.

1. Collectivle Bar~gainling.--(a) Employees shall have the right to
organize and bargain collectively through representatives of their
own choosing, and shall be free from t~he interference, restraint, or
coercion of employers of labor, or their agents, in the 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.
(b) No employee and no one seeking emiploymnent shall be required
as a condition of employment to join any company union or to refrain
from joinmng, organizing, or assisting a labor organization of his
own choosing.


(c) Employers shanll comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
2. Child~ Labor.--On and after the effective date of this Code no
person under the age of sixteen (16) years shall be employed except
that persons fourteen (14) and fifteen (15) years of age may be
employed either- -
(a) For a period not to exceed three (3) hours per day on six (6)
days per week, or
(b) For one day per week, such day not to exceed eight (8) hours.
In either case, all such hours of work shall be between 7 a.m. and
'7 p.m. and shall not convict with the employee's hours of day school.
It is provided, however, that no person under the age of sixteen (16)
years shall be employed in delivering merchandise from motor
It is further provided that where a State Law prescribes a higher
minimum age no person below the age specified by such State Law
shall be employed within such State.

1. Basic Sto~e! andi WTorking Hourls.--On and after the effective
date of this Code establishments in the retail jewelry trade shall elect
to operate upon one of thle following schedules of store hours and
hours of labor:
Group A.--Any establishment may elect to remain open for busi-
ness less than fifty-six (56) hours but not less than fifty-two (52)
hours per week, unless its store hours were less than fifty-two (52)
hours prior to June 1, 1933, in which case such establishment shall
not reduce its store hours; no employee of these establishments shall
work more than forty (40) hours per week, nor more than eight (8)
hours per day, nor more than six (6) days per week.
Gr~o-up B.--Any establishment may elect to remain open for busi-
ness fifty-six (56) hours or more per week but less than sixty-three
(63) hours per week; no employee of such establishment shall work
more than forty-four (44) hours per week, nor more than nine (9)
hours per day, nor more. than six (6) days per week.
Groupir C.-Ainy establishment may elect to remain open for busi-
ness sixty-three (63) hours or more per week; no employee of such
establishment shall work more than forty-eight (418) hours per week,
nor more than ten (10) hours per day, nor more than six (6) days
per week.
No employee shall work for two or more establishments a greater
number of hours, in the aggregate, tha~n he would be permitted to
work for that one of such establishments which operates upon the
lowest schedule of working hours.
No employee not included in the foregoing paragraphs, and not
specifically excepted hereinafter, shall work more than forty (40)
hours per week, nor more than eight (8) hours per day, nor more
than six (6) days per week.
2. Schedulle of Hours to be Posted.--On or within one week after
the effective date of this Clode every retail establishment shall desig-
nate under which of the Groups set forth in the preceding Section
it elects to operate and shall post and maintain in a conspicuous place


in the establishment a copy of such election showing its store hours
and employee w~orkring hours.
3. Changes inl 1Store Hours andl~ Empr~loyeie W~orkXing Hom'~ls.--(a)
No establishment miay change fromi the Glroup in which it has elected
to operate except upon Decemnber 31 of every yearil.
(b) Any establishment. however, may at any time increase its store
hours, provided it. maintains thle basic emplloyee woriik week of the
A~roup in which it originally elected to operate.
(c) Any retail jewelryr establishment may,! during the months of
1%fay to S'eptemlber, incluisive, temnporarily redluce its store hours, but
the wieetkly wagles of its employees .shlall nlot on thlat account be
4. Ex7cept~oios to m/ariiillnw period~s of lrbor.- (a) Pr~ofessiolnal
persons, outside salesme~n, outside collectors, wantchmen, Fuards~, and
store detectives. The maximumi periods of labor prescrlbedd in. Sec-
tion 1 of this A~t~icle shall not. apply to professional persons em-
ployed and working at. their profession, or to outside salesmien, out-
side collectors, w~atchmen, guards, and~ store detectives.
(b) ilainteinance arnd outside~ nse'lirvic emp Iloyecs.- Thh e m-aximluml
periods of labor precrcibed~ inl Section 1 of this Article shall not
apply to mlaintenancee and outside serv-ice em~ploye~es; but such erm-
ployees shall not wrorki more than six (6) hours per week: above
the maximumn hours per wele othlerwTise' described by Sectio~n 1.
unless t~hey are paid at the rante of timle and one third f'or all hours
over such additional isi (6) hiours~ per week.
(c ) Ex~ect fivesf.--Subj ect, t o thle cond~li t ion set fo rt h inI Sect ionl 5j
of this Article, executives receiving $35.00 or more per week in cities
of over 500.000 population. or receiving $30.00 or more per w~eek in
cities of 100,000 to 500,000 population, or receiving $27~.50 or more
per w~eek in cities of 25,000)C to 100,0010 pocpulalt~ion, or receiving $9100~r
orP monre Ipr wee+ in cities,~ towrns, village, andl other p~laces under
'25!00)0 population, mlayv work in excess of the maximum per~iods of
labor prescribedl in tSec~tion 1 o~f this Article. In the South executlives
paid nlot less thnn tenl (10) percent brelow the wages just sp~ecifiedl
mnay work inl excess of such miaximumi periods.
(d) Pea pr~i j~iOdP --At ChrlistmaS, inventory;, andl other peak times,
for a period not to exceed five (5) weeks in t.he calendor year, an
emp~loyee whose basiic wTor'k wreek is fortyl (4l0) hours may~ w~orkl not
more thian forty~-eight (418) hours per week andi nine (9) hours per
day; an emplloyee whose basic work w-eek is for~ty-four (44) hours
may work not m~ore than fifty-two (52:) hours per week and nine andl
one half (9.1,) hours p~er day; an employee wFhose basic wojrk week is
fort~y-eighit (48) hours may w~orke not more than fifty-six (56) hours
per week andi ten (10) hours per day. All such worlle may1! b~e without
the payment of overtime.
(e) The maximum hours prescribed in thlis Alrticle shall not apply
in rcases of very snpecil eme~9~nrrgec where the limitation, if imposed,
wouldl preclude the satisfactory completion of a transaction w-ith a
specific customer, or the satisfaction of requiremients as to reports
to anly Fedleral, State, or Trade Algency, or in emnergencies threaten-
ing dlamlage or destruction to the plant or assets of retail jewelry


5. Limzitati'on upona number of persons working ulnrestric~ted
hour~s.-NotwPithstanlding the provisions of the foregoingf sections of
this Article, and regardless of thle number of persons otherwise per-
mittedl to workr unrestricted hours, t.he total number of workers in
any esta\blihmnelt. (whether such workers are executives, proprietors!
partners. p~ersons not receiving monetary wages, or others') who shall
be p~ermnittedl to w-ork unlrestr~ictedl houlrs shall not exceed the following
ratio: In establishments comprised of twenty (20) workers or legs
the total number of workers wFho mlay work ulnresctrictedi hours ( not
inltulinlg those workers specified in Section 4 (a) of this Article)
shall not exceedl one worker for every five (5) workers or fraction
thler~eof; provided that in retail jewelry establishmlents wvith five or
less workers, two workBers quualifyinng under this section may but only
in a mnanAagerial npacity,! work unrestricted hours; in establishments
comp~risedl of more than twenty (20) workers the total number of
wor~lker~s who mlay work- unrestricted hours (not including those
w~orker~s specified in Section 4t (a) of this Article) shall not exceed
onie wor~ker for every five (5) workers for the first twenty (20)
workers, andl shall not exceedl one worker for every eight (8) workers
abovet tw-entyr (20).
6. Hours of workIJL to be?- conlS/.cutive.-Thl e hours wor~kedl liy any
employee during each dlay shall be consecutive, provided that an
initerval nlot longFer thlan one hour1 may be allowed for each regular
meal period~, and suichi interva~l not. counted as part. of the emnployee's
w~orkingr timne. Anyl rest per~iodl whlich may be given employees shall
not be deductedl fromn suich emiployee's working time.
7~. Extra~ ,!oii~rkin hoiur on~ onell dayl a w!eek.--On one dlay each week
emiployees mnay wo-rk one extra hour, but such hour is to be included
within the maxsimrun hours permitted each week.
8. C'onlipct wcith IState I~laws.-W~hen~ any St~ate law prescribes for
any class of emuployees shorter hours of laborol thanl those ~r~escribedl
in this Article, no employee included within s~uch class shall be em-
ployedl within such State' for a greater Inumber of hours than such
State allows.

1. Basfi8 ,whedulle' of Iragles.--O n and after the effective date of
this Codle, the mlinimumul weeklyl rates of wages which shall be paid
for a7 work w-ele as specifiedl in Article IVI-wFahether such. wages are
calcula~tedl upon an hourly, weekly, monithly, commiission, or any
othler bsis--shall, except. as hereinafter provided, be as follows:
(a) WVithin cities of over 500,000 population, no employee shall
b~e p~aid less thanl at the rate of $14l.00O per week for a forty (40)
hiour work w~eek. or less than at the rate of $14.50 per week for a
forty-four (44) hour' wor~k week;, or less than at. the rate of $15.00
per week for a forty-eight (48) hour workr week.
(b) Within cities of from 100,000 to 500,000 population, no em-
ployee shall be Paid less: t~han at the rate of $13.00 per week for a
forty (410) houri workr week, or less than at the rate of $13.50 per
weekr for a forty-four (44) hour work week, or less than at the rate
of $14.00(T per w~eek for a fortyr-eight (48) hlour work week.
(c) W\ithin cities of from 25,000 to 100,000 population, no em-
ployee shlnll be paid less than at the rate of $12.00 per week for a


forty (40) hour work week, or less than at the rate oft $12.50 per
week; for a forty-four (44l) hourl workl~l week, or less than at ithe rate
of $13.00 per week for a, forty.-eighlt (~j) hour workll week.
(d) WithinI cities, towns, v-illages of froml 2,500 to 23,000~) popula-
tion, thle wages of all clauses o~f empllloyees shall be irccn~crse from the
rates existing on Junle 1, 1933, by\ niot less than twn-crty (20) percent,
p~rovidedl that this Ihall no~t requ~lire an increase mn wrag'es to more thman
the rate of $11.00, per week andl prlovided further that no empljloyee
s~hall-e paid less than at thle rate of $10).00 per week.
(e) WVith~in townsl~, villages, and~ other places wyith less than 2,500
population, thle wages~ of all classes of emlployeesc shall be incr~eased-
froml the rantes exisiting on June i.10j, 193,~ by nt less than tw-enty (20)
percent, pr~ovidedl thnt this ~hall not Itrequire an increased in wagecs to
mor~e than thle rate of $10.00 p~er week.
The m~inimuim wages panid to unprofessional perso-ns, oltsidle Fsales-
me~n, outside collectors, watlchmnen, Leunedls, store dtelttctivea, and
maintenance and outsidet service emp~lloyees shall be noo~n the basis
of the basic employee w~orki week uplon whlich the estab~lishmnent by
whichl they' are empi~loyedl has electedl to operate.
Thle mniinimumi wagies of anyi emplloyee no~t includedcr in t~he fore-
goinga para~graplhs andl not .splecjideally~ excep~ted- h-ereinafterl shall be
upon the basis of a for~ty (40)) hourl work) ~weekr.
2. Ju~l~lSniors andpplrent i~ce.-JunI~irr aInd. aIlppent ice employees mayi~
b~e paid at. the rate of $1.00 less pcr' w~eek than thie miinimi~num wage~
otherwise app~lienble; it is p1rov~idedl howevc\er, that no employece shall
be classifiedl both as a juniorl and as an apir~entice~ employee, and it is
further pr1ovid~edl that thec number of emplloy~ells c~lass.iiell as junior
and as apprentice emiployees, combined, shall. not. exceed a ratifi of
olne such emp~loyeer to- every five emplloyrees or fractio-n thereof uip to
tw~ent~y (o0), andr onle such emnplo~yee to \every ten (10) employees
above twetnty ('20).
3. South enI, wagerlr di~';~~firenl.--I n the. South, within cities of over
25,000 population, the mninimuml wages prescribed in the forergoing
sections may be at thep rate of $1.00 less per w\ee~k; wTithin cities,
towns, anld villages o~f from ,500 to "5,000l population the wages~ of all
classes of employees shall. be increased from the rates existing on
June 1? 1933, by not less than twenty (20) p~ercenlt, proviided that
this shall noct r~equir~e an increase irln wage to more thann the rate ,of
$10).00 p'er week, andc prov~ided further that. no employee, shall be paid~
less than at. t.hle rate of $9R.00 per week except as providled in. Section
2 of this Article; within cities, town;, vilinges, and other places under
;,:500 population thle wnages of all classes of employees shall be! in-
rereased from the rates existingr on June 1i 1933, by niot less than
twenty' (20~r) percentn, p~rovidedl thant this sha1ll notf require an. increase
in wages to mnore than the rate of $9.00 per week.
4. Partf-time emp~lloyeeP.--Pa rIt-time emp~loyeesi shall be paid not
less thnn at. an hourlyl rate p~roportionate to the rates pr~escribed in
the foregoinlg sections of this Article.
5. WTeekllly war~ges abovle m~iinilrnw nrot to be redu~ced.-- The weekly
wrages of.all classes of employees r~eceiving mor~e than the mirinimum
wrages prescribed inl this Article shalll not be r~edued fr~om the rates
existing upon Julyr 15, 1933, notwliths;tand~ing any reductions in the
number of working hours of such emplloyees..


6. Conflict wIith State lawus.-W~hen any State law prescribes for
any class of employees of either sex a higher minimum wvage than
that prescribed in this Article, no employee of such class of either
sexl emnployed within thiat State shall be paid less than such State
law requires.


1. Limi1f~tations u~pon p~ic~e incr~eases.--No retail jeweler shall in-.
crease thle price of any~ me~chandcise sold after the effective date of
this Code over the price existing June 1, 1933, by more than is made
necessary by th~e amlount of increases in production, operating, re-
pla7cement, and/or inv\oie costs of merchandise; and/or by taxes;
and.',or by other costs resulting from action taken puLrsuant to the
National Industrial Recovery Act and/or the Agricultural Adjust-
ment Act. since June 1, 1933, andl in setting such price increases~retail
;pjeweler shall givep fuill weight, to probable increases in sales volume.
It is provided, however, that if any price on June 1, 1933, was a dis-
tress price, an equitable adjustmei nt ay b~e madle.
2. Adcjuvstm~~ent of pr~ior c~onlt cracts.-Where costs of execu ting con-
tract~s entered into before June 10, 10)33, by any entaill jeweler fo~r the
purchase of' goods at. fixed prices for dlelivery during thle duration
of this Code are increased by the application of the provisions of
the National Industr~ial Recovery Act undc/or the Agricultural Ad-
justment Act, it. is deemedl equitable and prom~otive of the purposes
of the Act that appropriate adjustments of such contracts to reflect
such increased costs actually incurred be arrived at by mutual agree-
mient or ar~bitrnl proceedings or otherwise, and the National Retail
Jewelry Trade Council provided for in Article IX her~einafter is
constituted an agency to assist. in effecting such adjustments.


1. Loss Lim~itatio l Pr~ovisioi.--In order to prevent unfair com-
pet~ition agasinst local merchants, t~he use of the so-called "~ loss leader "
is hierebyv declared to be an unfair trade practice. These loss lead-
er~s are articles often sold below cost to the merchant, which means
thle actual niet. delivered cost or current replacement cost whichever
is lower, for thle purpose of attr~ct~ing trade. This practice results,
of courlSe, either ini efforts by t~he merchant to makte up the loss by
charging m~ore than reasonable profit for other articles, or else in
driving the small merchant w~ithi little capital out of legitimate busi-
ns.It. orrlks back against the producer of raw materials on farms
andl in Industry and against thle labor so employed.
This declaration against the use of loss leaders by tle, store-
keeper does not prohibit. him from selling an article without any
profit. to himself. But the selling price of articles to the consumer
should include an allowance for actual wages of store labor, to be
fixedl and pulblishedl fromr time to time by the Trade Authority
hereinnfter established.
Suchi an allowance for Inbor need not be applied 'by retail
jeweeles doing business only in communities of less than 2,500 popu-
lation (according to the 1930 Census) which are not part of a larger
trade ar~ea.


Pro~ided, however, That any retail jeweler may sell any article of
merchandise at a price as low as the price set by any compIetit~or in his
trade area on merchandise which is identical or essentially thle samne,
if such competitor's price is set in conlformnity w~ith thle foregoinga
provisions. A retail jeweler w~ho thuls reduces a price to meet a
competitor's price as above defined shall not be deemed t~o have vio-
lated the provisions of this Sjec~tion if s~uch retail jeweler inunediately
notifies the nearest local retail jewelry trade commiiittee as her~einafteir
provided in Article IX, Section 2 (e) of such action and all facts
pertinent thereto.
2. RE~ceptiionis.-(a) Notwit~hstanding, the pr1ovisions of t.he pr'ecedl-
ing Section, any? retail jeweler may sell at less than thle pr'icess speci-
fied above, mnerchand~ise soldl as a bona fide clearance, if advertisedl,
marked, and sold as such; imperfect or actually damaged merchan-
dise, or bona fide discontinued lines of mrchandiise, if advertised,
marked, aind sold as such; mnerchandise sold upion the complete final
liquidation of any business; merchandise sold in qlluatity on contract
to public carriers, departments of government, hospitals, schools and.
colleges, clubs, hotels, and other institutions for their own specific
use annd not for resale a~nd not for redistribiution to indcividuals;
merchandise sold or donated for charitable purposes or to unemploy-
ment relief agencies.
(b) W'here a bona fide premiumi or certifiente repren enting a share
in a premiums is given awfay withl any article the base upon which the
minimum price of the article is calculated shall include the cost of the
premliumu or share thereof.

All retail jewelers shall complyl with the followring trade practices:
1. A~dvertiising and Selling Alethod'~.--(a ) No retail jew~eler shall
use advertising, whether printed, randio, or display or of anly other
nature, which is inaccurate inl any material particular or misrep-
rese~ntsi meIPrchandise (includi~ng its ulse, tradelf mark1, gr~ad~e, quality,
quaenti;ty~ size, origain, material, content, or preparation) or credit
terms, values, policies! or services; and no retailer shall uise adver-
tising and..'or selling methods which tend to deceive or~ misleadd the
(b) No retail jeweler shall use advertising which refers inaccu-
rately in any material particular to any comlpetitor or his muer~chan-
dise, prices, values, credit terms, policies, or services.
(c) No retail jeweler shall use advertising which inaccuratelyr lays
claims to a. policy or continuing prratirce of grenerally ulndrse~lling
(dZ) No retail jeweler shall secretly give anything of vanlue to thle
employee or agent of a customer for the purpose of influencing a
sale, or in furtherance of a sale render a bill or statement of account
to the employee, agent, or customer which is inaccurate in any
material particular.
(e) No retail jewveler shall place obstac~les in the way of the pur-
chase of a product which a consumer orders by~ brannd namne by
urging upon the consumer a substitute product in a manner which
dlisparages the product ordered.


(f) Violation by a retail jeweler of the applicable state stamping
laws relating to articles made wholly or in part of gold, silver, metals
of the platinum group, or alloys thereof ; or, where there are no ap-
plicable state laws relating to said articles, violation by a retail
Jeweler of the National stamping laws or of the standards of quality
approved by the United States Bureau of Standards, shall be a
violation of this code.
(g) No retail jeweler shall use the word "L perfect or any other
w~ord or expression of similar mleamngn, in any way, in connection
with, or as descriptive of, any diamond, ruby, sapphire, or emerald
which discloses flawfs, cracks, carbon, spots, clouds, cloudy texture, or
blemishes of any sort when examined by a trained eye under a
diamond loupe of not less than 7 power.
(h) No retail jeweler shall use the wvord "' diamond "L emerald ",
rubyy ",' "sapphire ", or pearlrl' in selling, offeringo for sale, or ad-
vertising for sale any article or articles that are manufactured, pro-
duced or artificially cultured or cultivated as an imiitation of, or
substitute for, any real or natural diamond, emerald, ruby, sapphire,
or pearl, as defined hereafter, without using a word or wTords con-
spicuously and clearly portraying that the article is manufactured,
produced, or artificially cultured or cultivated, as the case may be.

Diamon~d.--A mineral consisting essentially of pure carbon
crystallized in the isometric system, generally mn octahedron form,
either colorless or variously tinted. Its hardness is 10 and its specific
gravityr about 3.525.
Emera~ld.--A br~ight-green variety of beryl which crystallized in
the rhombohedral syrstemi, almost always in six-sided prisms. Its
color is due. to the presence of chromium. I~ts hardness is about 7.8
and its specific gravity very nearly 2.7.
Ruby.--The name ruby is given to the transparent red variety
of the mineral corundum, which is nearly pure alumina (AiO,).
The color is due to the addition of minute quantities of metallic
oxides to t~he alumina. Its hardness is about 8.8 and its specific
gravity varies from 3.97 to 4.05.
Sapphir~e.--The name "' sapphire is given to the transparent blute
variety of the mineral corundum, which is nearly pure alumina
(Als03). The color is due to the addition of minute quantities of
metallic oxides to the alumina. Its hardness is about 8.8 and its
specific gravity varies from 3.97 to 4.05. Sapphires may be of other
colors than blue, but in that case are commercially classed as semi-
precious stones.
Pearl.--Pearls are lustrous concretions, consisting essentially of
concentric layers of carbonate of lime int~erst~ratified with animal
membrane, found in the shells of certain mollusks, the result of an
abnormal secretory process caused by an irritation of the mantle of
the mnollusk consequent on the natural intrusion into the shell of some
foreign body, as a grain of sand, an egg of the mollusk itself, or
perhaps somle cercarian parasite, or an excess of carbonate of lime
mn the water.
(i) No retail jeweler shall use the words "L real ", "L genuine", nat-
ural ", or any other words of similar meaning, in any way inl con-


nection with, or as descriptive ofl any article or articles that are
manufactured, produced, or artificially cultured or cultivated, ais an
imitation of, or substitute for, any precious or semiprecious stones
or pearls.
(j) No reta;l jeweler shelling jewelry to thle ultimate consumer shall
refer his customers to the establishment of another retailer with the
suggaest~ion that the customer make a selection but no purchase, thus
parasitically using the facilities of the latter retailer, such as stock
and salesmen's time, to create sales for hmimself by offering and deliv-
ering the identical goods to his customers at greater profit to him-
self, because others bear a substantial part of the cost o~f his effectiing
such sale.
(k) No retail jeweler shall, in the retail jewelry trade, represent
himself as other than a retailer.
(1) No retail jeweler shall issue price lists and/or catalogues the
tendency of which, in connection with the offering of discounts, is
to give to the consumer the impression that the prices are bargain
prices, when such in fact is not thie case.
(m) No retail jeweler shall grant; discounts, rebates, refunds, com-
missions, or credits, whether in the form of money or otherwise, and
shall not extend to certain purchasers special services or privileges
not extended to all purchaser~s (individuals directly connected with
his establishment excepted, and then only when merchandise is for
their personal use and not for resale) on like terms and conditions.
Nothing in this section shall be construed to prevent price differ-
ential's from being allowed on the basis of a sale in quantity, or uchh
other factors as the Administrator sh~all deem proper, provie sc
differentials do not exceed the savingrs actually enjoyed by the seller
by reason of selling and handlling the larger quantities.
(n) No retail jeweler shall sell or offer for sale directly or through
an agent, at auction, in thle retail jewelry trade, any jewelry except
for the purpose of legritimate liqluidation, or in case of dir~e need-, in
either of which cases an appliention must be mande to and approved
by the local Retail Jewelry Trade Committee. In such instances, no
special purchases of jewellry shall be made for the purpose of this
auction and all jewrelry offered at auction must be stock legitimately
owned in the natural course of the conduct of said Retail Jewrelry
Business. It shall be further required that an accurate inventory o~f
jewfelryv to be auctioned be filed with t~he local retail jewelry trade
commiittee at l'east fifteen day~s before the auction, or as otherwise
provided by the local or state law~s.
(0) No retail jeweler shall advertise or offer to repair watches or
clocks at a uniform price irrespective of the cost of~ such repairsa.
(p) No retail jeweler shall sell, offer for sale, or advertise for sale,
rebuilt watches unless such articles are clearly desrignated as such.
(q) No retail jewreler shall appraise any article of jewelry unless
such appraisal is~ mwriting over his signature.
2. N.R.A. Label.-No retail jeweler shall purchase, sell, or ex-
change any merchandise mlanufactured under a Code of Fair Comn-
petition which requires suchl merchandise to bear an N.R.A. label,
unless said merchandise bears suchl label. Any retail jeweler right-
fully possessing the insignia of the N.R.A. who has in s-tock or pur-
chases similar merchandise which has been mannufactured before the


effective date of the Code of Fair Competition requiring such mer-
chandise to bear an N.R.A. label may attach thereto the N.R.A.
3. Prison-made Goode.--Pending the formulation of a compact or
code between t~he several States of the United States to insure the
manufacture and sale of prison-made goods on a fair competitive
basis with goods not so produced, the following provisions of this
Section will be stayed for ninety (90) days, or further at the dlis-
cretion of the Administrator.
(a) Where any penal, reformatory, or correctional institution,
either byr subscribmng to the code or compact hereinbefore referred to,
or by a binding agreement of any other nature, satisfies the Ad-
ministrator that merchandise produced in such institution or by t~he
inmates thereof will not be sold except upon a fair competitive basis
with similar merchandise not so produced, the provisions of para-
graph (b) hereof shall not apply to any merchandise produced in
such manner in the institutions covered by such agreement.
(b) Except as provided in t~he foregaoing paragraph, no retail
jeweler shall knowingly buy or contract to buy any merchandise
produced in whole or in part in a penal, reformatory, or corree-
tional institution. After Mlay 31, 1934, no retailer shall knowingly
sell or offer for sale such merchandise. Nothing in this Section, how-
ever, shall affect contracts, which the retailer does not have the option
to cancel, made with respect t~o such merchandise before the approval
of this Code by the President of the United States.
(c) Nothing in this Section shall be construed to supersede or
interfere with the operation of the Act of Congress approved Janu-
ary 19, 1929i, being Public No. 669 of the 70th Congress and entitled
"A~n Act to D~ivest Goods Wares, and Merchandise Manufactured,
Produced, or MIined by inviets or Prisoners of their Interstate
Character in Certain (ases ", which Act is known as the Hawes-
Cooper Act, or the provisions of any State Legislation enacted under,
or effective upon, the effective date of the said Hawes-Cooper Act,
the said effective date being January 19, 1934.
4. Company sc~rip.--The following provisions of this Section shall
not become effective until Miarch 1, 1934. Pending such effective
date t~he Administrator shall appoint a Committee of not more than
three persons to investigate the economic a~nd social implications
of these provisions. Said Committee miay make recommendations
based upon its investigations, and such recommendations shall, upon
approvl by he President of the UCnited States, become effective in
theprvlac of,~E~ these provisions:
(a) No retail jeweler shall accept as payment for merchandise
any nonnegotiable scrip, company hcs rohreiec fwg
paymnt ssud b an iniviualor private profit organization mn
payment of wages or as an advance upon unearned wages. A
negotiable instrument issued by any individual or private profit or-
ganization in payment of wages shaUl be accepted only if it is pay~
able in cash within one month of the date of issue. This paragraphh
shall not apply in cases where the cash funds of any individual or
organization are rendered temporarily unavailable due to the closing
by state or federal order of the bank in which such funds are


(b) No retail jewfeler shall extend credit in the form of goods,
money, or services to any~ person other than its own employees en-
gaged exclusiv-ely in the retail trade, upon any~ employer's guarantee
of par~t or all of said person's future w'aage,S or pursuaLInt to a wage-
deduction arrangement entered into wFitlysidii employer, unless an
identical guarantee or wage-deduction arrangement is available to
all retailers.

1. Reafil Jewe/lry Trade Autshorify.--The Ret~ail Jeewelryr Trade
Authority shall consist of the Administrator or his Deputy, or not
more than three members appointed by the Admninistrator, who shalll
advise and assist the Admninistrator or his Deputy. Mlembiers of thle
Retail Jewelry Tr~ade Authority shall be members, without vote, of
the National Retail Jewelry Trade C.ouncil, provided for hereinafter,
and without expense to said Council.
2. Natr~ional Retail: Jetoetry2 Trade C~ou~nc~i.--
(a) C~omposition.--To effect.uate further the policies of the Act, a
National Retail Jewelry Trade Council hereinafter referred to as
the Code Authority is hereby designated to cooperate with the Ad-
ministrator as a planning and fair-practice agency for the retail
jewelry trade. This Code AuthorityT shall consist of 5 representa.-
tives of the retail Jewelry trade, designated by a fair method t~o b~e
approved by the Admirustrator. Where more than one national
trade association each represents a portion of a single division of the
retail jewelry trade, the Administrator shall, for the purpose of
establisihing 'the membership of the National Retail Jewelry Trade
Council in the first instance, determine whether such associations are
truly representative and what shall be the number and proportionate
vote of such associations upon the Council: after the initial estab-
lishment. of the Council such decisions shall be mad~e by the Councit.
subject to an appeal to the Administrator. The National Retail
Jewelry Trade Council may issue. regulations providing for the local
administration of this Code through cooperation with the local
Retail Trade Councils set up under the supervision of the Nationlal
Retail Trade Council, suich regulations to be subject to the approval
of the Administrator.
(b ) Recom.mtendat ions.--The Nati onal1 Retail ,Je welry4 Tra~de Coun11-
cil may from time to time present to the: Administrator recommienda-
tions includingg interpretations), based on conditions in t~he retail
jewelry trade, which will tend to effectuate thle operation of the pro-
visions of this Code, andl the policy of the National Indlustrial Recor-
ery Act. Suc~h rc~ommnendalt ions shanll, upon app~roval by th~e Ad-
ministrator, become operative as part of this Code.
(c) Invaestigations.--The Code Authority is empower~ed and set
up to cooperate with the Administrator to make investigations as
to the functioning and observance of any provision of this Code,
at its own instance, on request of the Aldministrator, or on co-mplaint
by any' persons affected, and to report the same to the Adrminiistrator.
(d) Reports.--The Code Authorit~y may~ require suchl reports us
may be necessary to administer this Code, in such form as mayR be
approved by the Administrator. Any reports reqluir~ed by the Coide
Authority shall be submittedl to an imnpartial agency designated by


the Administrator, and not a member of the industry, and shall not
be revealed to any member of the industry, except in summary; pro-
vrided, however, that such information shall be available to the
Administrator upon request; and provided further, that such infor-
mation may be divulged if necessary to facilitate the administration
of this Codek. In addition to information to be submitted to the Code
Authority, there shall be furnished to the Administrator such sta-
t~istical information as the Administrator may deem necessary for the
administration of this Code.
(e) Local Comlmittees.--The National Retail Jewelry Trade Coun-
cil shall, subject to the approval of the Administrator, supervise the
setting up within local trading areas of local committees for the
purpose of assisting in the administration annd enforcement of this
Code within such local areas insofar as it relates to the retail jewlery
(f) The expenses of the National Retail Jewelry Trade Council
and its local committees shall be equitably assessed and collected from
retail jewelers, subject to the approval of the Administrator. This
assessment shall not exceed the sum of three dollars per annum per
employee. For this purpose the number of employees of any retail
jewelry establishment shall be the average annual number of per-
sons engaged in the retail jewelry trade in its establishment in any
capacity, receiving compensation for his services, irrespective o
the nature or method of payment of such compensation.
3. Intertpretations.--The Administrator may from time to time,
after consultation with the National Retail Jewelry Trade Council,
issue such administrative interpretations of the various provisions of
this Code relating to the, retail jewelry trade as are necessary to
effectuate it~s purposes, and such interpretations shall become opera-
tive as part of this Code, unless the Adm~inistrator shall otherwise
4. Exceptions inl cases of nu~2su~al or unduse ha~rdsh~ip.--Where the
operation of the provisions of this Code imposes an unusual or undue
hardship upon any retail jeweler or group of retail jewelers, such
retail jewelers or group of retail jewelers may make application for
relief to the Administrator or to his duly authorized agent, and the
Administrator or his agent may, after such public notice and hear-
ingfs as he may deem necessary, grant such exception to or modifica-
tion of the provisions of this Code as may be required to effectuate
the purposes of the National Industrial Recovery Act.

1. Mem bershTip in associatione.-M\em~bersh ip in the national retail
associations represented upon the National Retail Jewelry Trade
Council, or in any affiliated association, shall be open to all retail
jewelers of that portion of the retail jewelry trade which said asso-
ciations respectively represent, and said associations shall impose no
inequitable restrictions upon admission to membership therein.
2. Prohibiti'on against mon~lopolies.-The provisions of this Code
shall not be interpreted or applied to promote monopolies or monop-
olistic practices or to eliminate or oppress small enterprises or to
discriminate against them.


3. Prlohibitioz, against use of subterfuge.--No retail jeweler shall
use any subterfuge to frustrate the spirit and intent of this Code,
which is, among other things, to increase employment by universal
covenant, to remove obstructions to commerce, to shorten hours of
work, and to raise wages to a livingi basis.
-1. Right of PrPs~idenit to casncel ori miod~ify.--This Code and all the
provisiions thereof are expressly miade subject to the right of the
President, in accordance with the provisions of Section 10) (b) of
Title I of the Nationial Indusitr~ial Recovery Act, fr~om timne to timie to
cancel or modify any order, approval? license, rule, or regulation,
issued under Title I of said Act.
5. Alodfieat io ns an~d supyplementary p/rlr lo ~isii n s.-~uc~h o f t he p1o-
visions of this Ciode as are not. required to be included her~ein y$ thle
National Industriall Recovery Act, mnay, w~ith tihe approval of thie
Presidlent, be modified or elimiinated~ as changes inl conditions or
experience may indicate. It is conltemnplated that fr~om time~ to time
supplemientary proisions to this Code or additional Colei s will be,
submitted for the appr~oval of the President to prevent unfair comi-
~petitive practice and to effectuat~e the other p~urposes and policies of
Title I of the National Inldustria.l Recovery Act.
r,. Emrpir~atoan.--T h is C'ode shall continue in effe~ct until June 16,
1935, or t~he earliest date prior there~to on which the President shall,
by proclamation, or t~he Congress shall, by joint. resolution, declare
that the emergency recognized byv Section 1 of the National Indus-
trial Recovery Act has ended.
7. InftomriationL to be f'urniished govlelrtnment agenc~ies.--In addit-
tionn to information required t~o be submitted to the National Retail
Jewelry Tradle Council, there shall be furnished to Gover~nmentt
agencies such statistical information as the Adlministr~ator miay deeml
necessary for the purposes recited in Section 3 (a) of the National
Industrial Recovery Act.
App~roved Co~de No. 1-12
Registry No. 1631-11

3 1262 08728 5754