Code of fair competition for the chinaware and porcelain manufacturing industry


Material Information

Code of fair competition for the chinaware and porcelain manufacturing industry as approved on November 27, 1933 by President Roosevelt
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1 p., 273-283 p. : ; 23 cm.
United States -- National Recovery Administration
U.S. G.P.O.
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Porcelain industry -- Law and legislation -- 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. 126.
General Note:
Registry no. 1033-1-01.

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University of Florida
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oclc - 31955800
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Full Text





Per sle by the Superintendent of Docuentse~ Washington, D.C. - Price 5 cents

Approved Code No. 126

Registry No. 1033--1-01



'- *****- --- --l-bscutive Order
2. Letter of Transmittal
8i. Code


This publication is for sale by the Superintendent of Documents, Go~vernment
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
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Approved Code No. 128



A~s Approved on N~ovember 27, 1933

Executive Order

An application having beenl duly made, pursuanlt to and in ~full
compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a code of
fair competition for the chinaware and porcelain manufacturing in-
dlustry, and hearings having been. held ther~eon andl the Administ rator
having rendered his report containing an analysis of the said code of
fair competition together with his recommendations and ~findings
with respect thereto, and the Administrator having found that thie
said Code of Fair Competition complies in all respects with the
pertinent provisions of title I of said act and that the requirements
of clauses (1) and (2) of subsection (a) of section 3 of the said act
have been met :
NOW7, THEREFORE, I, Franklin D. Roosevelt, President of t~he
United States, pursuant to the authority vested in me byr title I[ of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of thle Administrator and do order that the said code of fair
competition be and is hereby approved.
Approval recommended :
Hean S. JoHNson,
November 27, 1933.


NOVEMBER 1T, 1933.
The White House.
SmR: A public hearing on the Code of Fair Competition for the
Chinaware and Porcelain M~anufacturinzg Industry, submitted byT
the United States Potters Association. and the American Vitreous
China ]Manufacturers Association, was conducted in Washington on
the 31st of August 1933 in accordance with the provisions of the
National Industrial Recovery Act. T1Chese associations claim to rep-
resent seventy-five percent (75%0) of the industry.
The maximum hours permitted under this code are forty (40) per
week. Watchmetn and kiln firemen are allowed to workr forty-two
(42) hours per week. I~n case of increased production, after using up
all available labor, provision is made for an appeal to the Admin-
istrator to grant an extension of hours.
The minimum wage is forty cents (40&) per hour for male em-
ployees and thirty-two cents (324) per hour for females. Special
pro-vision. is made that where females do the same work as males
they shall receive the same pay. Learners, who shall not exceed five
percent (5%) of the total number employed, are provided to be paid
not less than eighty percent (80%) of the minimum wage for a three
months' period.
The industry is fairly well unionized and the wage rates for the
skilled and semniskilled employees are fairly high. In face of the
serious foreign competition it is questionable whether any great
increase in labor c~octs will permit additional employment. In
fact, any move along that line will tend to still further reduce
TIhe aggregate invested capital in the industry is estimated at about
forty million dollars in. 1933, which represents a seventeen1 percent
(17%i~) decrease from forty-eight million dollars in 1928. Produc-
tion dropped about twenty-two percent (22%) from. 1928 to 1933.
Sales dropped similarly, but much more severely, the 1933 sales
representing about half of the 1928 figures.
The drop in value of sales has been. due not only to the d~epr~ession
but perhaps more to the competition from foreign countries. In
spite of! a tariff duty, foreign producers have lately been able to
undersell domestic prices because of lower labor costs and primarily
depreciated currenoxes. Needless to say American exrports are prac-
tically nil, for domestic producers cannot compete against the low
foreign prices.

The A~dministrator finds that:
(a) The code, as recommended, complies in all respects with the
pertinent provisions of title I of the act, including, without limnitta-


tion subsection (a) ofk section 7, and subsection (b) of scion. 10
thereof : and that.
(b) The UTnited States Potters As~sociation and3 thle Ameriann
Vitreous Clhina 1%fanuifacturers Association, the applicant groupsy
herein, impose nro inequitable rePstric~tions on admission to m~rnembe-
ship and arle truly~ representative of the Ch~inawnr~e and Porcelain
Mianufact urino- I~ndustry.
(c) The co ie as recommended is not designedi to promote monop-
olies or to elimlinate or oppress small eniterprise~s and will not, operated
to discrimninate against them, anmd wv9ill tend to effectuate the policy
of title I of the National Industr~ial Recovery Act.
This Industry has cooperated in a mos~t satisfue~toymnnrwt
the administration in the preparation of this codle. rmeinc
adducoed du ring thiis hearing anld frm recomm~iienda tions and reports
of the various adv\isory boards it, is believed that this code. as now
proposed and revised represents an effective, practical, equitabl
solution for thils industry, and its approval ashewihubitds
A dindis trator.



To erffectualte the policies of Title I of the National Inldustry Re-
covery Act, the following provisions are submitted as a Code of Fair
Competition for the Chinaware and ]Porcelain Manufacturing In-
dustry, and upon approval by the President shall be the standard of
fair competition for such industry and shall be binding uponr every
member thereof.

(a) TIhe term Chinaware and Porcelain M/3anufacturinrg lIndus-
try as used herein is defined to mean the manufacture of all prop-
erly glazed vitrleousi, vit~r~ified, semivitreous or semiritrified china,
tableware, kritchenware, dinnerware, and kindred lines, except sani-
tary, including all processes for the production of such commolcdities
for general commercial resale; earthenware, stoneware, or clay flower
pots, however, being hereby specifically excluded.
(b) The term ware shall be understood to mean any product
or merchandise manufactured by anyr member of the industry as
defined in paragraph (a) above.
(c) The term employee as used hnerein includes any person
engaged in any phase of the industry in any capacity receiving com-
p~ensation for hnis services, irrespective of the method ofl payment of
such compensation.
(dl) The term employer as used herein includes any one by
whom such employee is comnpensated or employed.
(e) The term member of the industry includes any one engaged
in the industry, as above defined, either as an employer or on his
own behalf.
(f) The terms "Act and "A~dmlinistrator as used herein shall
mean respectively the National Industrial Recovery APct and the
Administrator of said Act.


(1) The maximum hours of labor for employees shall be forty
(40) per week, subject to the following limitations and exceptions:
(a) The average hours worked per week by an individual em-
ployee shall not exceed thec maximum established when 6gured over
a period of three (3) months, nor shall the daily mn ximum exceed
eight (8) hours per day, nor the weekly maximum forty-four (44)
hours in any one week; provided. however that not less than time



and one third shall be paid for all hours inl excess of forty~ (40) per
week, except as provided in paragraphs (b), (d), and (e).
(b) Wat~chmen and engineers may be emplydi ar n hl
workr thirty-six (36) and forty-eight (48) hours on. paltrs nate wee
or not more. t~hn forty-twon (42) hours per weekl avenraedl over any
period of two weeks.
(e) The maximum hours establis-hed shall not apploy to executives Fek o
or supervisory staff receiving thirty-five dollars ($3~5.00)prweo
more, nor to emergency repair crews or outside salesmen.
(d) For a period of sixty (60) days after the approval of this Code
by the President the maximum hours her~eby established shall not
apply to tunnel kiin firemen, but thereafter shall prevail, and their
hours shall not be longer than forty-two (42) hours in any one weekr.
Other kiln firemen may bet emp~loyed~ in pairs and shall work thirty-
six (36) andn fortyo-eight (48) hours on alternate weeks, or not more
than forty-two (42) hours per week averaged over any period of two
weeks. It is expressly provided that all kiin firemen shall receive
one and one third time for all hours per week over forty-two (42)
when averaged as provided in this paragraph.
(e) In the event of unusual conditions legitimately requiring an
extension of hours, where it is impossible to meet the required pro-
duction with the available supply of labor, or in the event that a
reduction of hours is necessary to absorb existing unemployment,
members of the industry, through the Code Authority may request
the Administrator for such extension or reduction oj hours other
than those provided in this Codel with such provisions for overtime
as the Adnunistrator may prescribe.

(a) The minimum wage that shall be paid by any employer in the
Chinaware and Porcelain MIanufacturing Industry shall be forty
cents (40e) per hour for males and thirty-two cents (82$) per hour
for females, except that where females do the saime work, as is culs-
tomarily done by males in this industry, they shall receive the same

(bi) Employees wmho hire assistants and thus become empl oyers in
fact, shall pay not less than the minimum wage as herein provided.
(c) Learners, who shall have had no previous employment or
experience in tlus industry, shall be paid not; less than eighty percent
(800/) of the minimum wage, and shall not exceed in any calendar
month five percent (5%0) of the total number of employees of such
employer. The learning period for such learners is hereby limited to
a three (8) months' period.
(d) All wages shall be paid in cash or by check of even date, within
six (6) days after the completion of the work period, which period in
no event shall be longer than sixteen (16) days.
(e) It is the policy of the members of this Irndustry to refrain from
reducing the compensation for employment which compensation was
prior to June 16, 1933, in excess of the minimum wage herein set
forth, notwithstanding that the hours of work in such employment
may be reduced; and all members of this Industry shall endeavor to
increase the pay of all employees in excess of the minimum wage, as
herein set forth, by an equitable adjustment of all pay schedules.


1. Employer~s in the Chiinaware and Porcelain Ma~nufacturing
Industry shall not have in thleir employ any person under the age59
of sixteen (16) years.
2. Em~ployees shall hav-e the right to organize anrd bargain collec-
tively through representatives of their owyn choosing, and shall be
free fromt the inte-rferencee restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organ Iization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
3. No employee and no one seeking employment shall be required
as a conldition of employment to join a~ny company union or to
ret!franin from goining, orgamlzmng, or assisting a labor organlization of
his own chnoosing; and
4. Employers shall comply with the maximum hours of Ilabor,
minimuum rates of pay, and other conditions of employment,
approved or prescribed by the President.
5. Within each state this Code shall not supe~rsede any laws of
such state imposing more strinlgenlt requirements on emlphlyer regu51-
lating the ag~e of employees, w\Nages, hours of wnor~k, or general
working conditions than under this Code.
6. Emiployers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes o'f
the Act.
7. Each employer shall post and keep~ posted in conspicuous places
full copies of the wage and hour provirsions of this Code.
8. No employee shall work, or be p~ermlitte~d to work, for a total
number of hours in excess of the number of hours herein prescribecd,
whether hne be employed by one or more employers.
9. If any employer of labor in the ChinawrJare and Porcelain In-
dustry is also an employer of labor i~n anyg other I~ndustry the pro-
visions of this Code shall apply to and affect only that part of hris
business which is engaged in th~e manufacture of chinaware and
porcelain, as hereinr defined.
To further effectuate the policies of the National Industrial Re-
covery ALct, a Code Authority for the Chinawm~are and Porcelain
Manfacurig Idusryis set up to cooperate with the Admtninis-
tra~tor as a; planning adfi rcieaec o h hnwr n
Porcelain MSanufacturing Industry.
1. Organization~ and Constitution of Code Authiority.
(a) T4 Che Code AQuthority shall consist of three (3) mnemberss nom~i-
ntdby the United States Potters ~Association1; three (3) mlemnbers
nominaxted by the American Viitrified China Manulfactur~ers Associa-
tion, to be approved and appointed by the .Administrator, and in
addition thereto one (1) member to be nominated by the sixe (6) so
appointed, who shall be approved and appointed by the Admninis-
trator, and not more! than three (3) members, wvithlout vote, to be
appointed at the discretion of the Administrator.


(b) Each trade or industrial association d~irectly ridrcl
participating in thje selection or~ activities of the Cd uhrt
shall submit to the Administratorr true copies of its articles of asso-
ciation, bylaw-s, regulations, and any amendments when made thereto,
together with sucht other informatlnionl as to mnemlbership, organiza-
tion, and activities as the Admninistrator mayi deem necessary to
effectuate thle purposes of the Act.
(c) ]In order that thle Code A~uthrority shall at all times be truly
representative of the industry and in other respects comply with the
provisions of the Act, the A~dminist rator may provide such hearings
as he mlay deem proper; and, if upon such hearings, he shall fid
tha~t the iCodr~e Atluthority is not truly reIpresenltative, or does not in
other respects comply wcsith the provisions of the Act, he may take
such action as he deemns necessary under the circumstances.
2. The Code Authority shall have the following duties and powers
to the extent permitted byT the AcSct, subject to the right of the
Administ rator to disapprove or modify any action taken by the Code
Authority, to make effective thne provisions of this Code! and thereby
effectuate the purposes of the National Industrial Recovery Act.
(a) The Code Authrority, within the approval of th Adiinlistraztor,
shall have the power to require such reports from any member of the
industry as may be necessary, pro~vid3ed, however, that all statistics,
data, and information filed in accordance with. thnis provision shall be
confidential and the statistics, d~ata, and other information of one:
employer shall not be revealed to anyT othr employer except for the
purpose of administer ng or en forcing the provisions of this Code.
(b) The Codle Authorilty, subject t~o the approval of the Adminis3-
trator, may_ designate a Regional Committ~ee for the Pacific Cloast
and may delegaate to such Regional Committee such of it~s powers and
a ut.h or ityS as may be necessary for the Administration of this Code
within that region, including the right to submit to the Aidministra-
tor recommendations, applicable only to such region for amendments
of this Cod~e.
3. No inequitable restrictions on admiission to membership- in the
United States Potters Association, or the American Vitrified China,
Manufacturers Association, or any other trade association or organ-
izd rup, participating in t~e activities of the Code Aut~hority,
ieshall ibec imposed, and any member of the industry shall be eligible
for membership in any such trade association or organized group,
upon compliance with the provisions of the by-laws relating to mem-
bership, provided that any person applying for such membership
shall, in addition to the payment of such dues as are imposed and
paid by all other members, accept a reasonable and equitable share
of the cost of code development and administration. Such members
of the industry who do not choose to become members of any trade
association or organized group may participate in the activities of
the Code Authorityv, as herein provided,, by payingf to the Code
Authorit3 such proportionate part of the cost of code development
and administration as the Code Authority, subject to the Adminis-
trator's approval, shall prescribe as fair and equitable.
4. In addition to the information required to be submitted to the
Code Authority there shall be furnished to government agencies such
statistical information as the Administrator may deem necessary for


the purposes recited in 1Section 8 (a) of the National Industrial
Recovery Act.
1. D~isconltinued items and seconds:
(a) Discontinued lines of items may be disposed of in such manner
and upon such terms as the Code- Authority shall approve; and if
such approval authorizes a sale belowPP cost It shall not be deemed a
violation of this Code.
()Semivitrified ware which ordinarily comes in the class of sete -ar
odth~irds, or lump, as these terms are understood by the trade
when it is decorated shall be stamped and fired second eeto.
This shall apply to all ware of this character whether decorated by
the manufacturer or by any other person.
2. The following practices constitute unfair methods of competi-
tion for members of the Industry and are prohibited:
(a) No member of this Industry shall sell any products or mer-
chandisels (haexcept discontinued items as provided m section 1 (a)) at
les tan isindividual cost; provided, however, that he may sell
below such cost in order to meet a competitive price. or prices.
(b) Omission from the invoice of any element of value in con-
nection with the merchandise covered by the invoice, when the effect
of suchn omission will be to reduce the total price of merchandise.
(c) T~he payment or allowance of rebates, secret or otherwise, re-
funds, commissions, credits, or unearned discounts, whether in the
form of money: or otherwise, or the extension to certain purchasers
of special services, including special advertising allowances of any
kind, or privileges not extended to all purchasers on like terms and
(d) D~eliv~ered quotations which do not include freight and pack-
age charges.
(e) No member of the IndustryV shall ship goods on consignment
except under contract or on bona-fide orders.
(f) Copying of prints or decalcom~ania or handl-paintedl patterns,
or haps, f ay Aerian ottryof China manufacturers which
is a ne-w and original design, andntnadttonfafreg
or domestic design. (This rule shall not apply to crests.)
(g) To make false and misleading remarks or statements with
regard to a competitor! his employees, product, selling price., busi-
ness, or financial standing.
(A) Maliciously inducing or attempting to indluce the breach of
an. existing oral or wFPritten contract between a competitor and his
customer or source of supply, or interferinga with or obstructing the
performance of an such contractual duties or services.
(i) To improperly or misleadingly use descriptive trade names
or terms.
(j) The making or causing or knowingly permitting to be made
or published any false, ma~terially inaccurate, or deceptive statement
by way of adver~tisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the industry 7, or the credit terms,
values, policies, or services of any member of he industry, or other-


wise, havinfi the tendency or capacity to m~islead or deceive customlers
or plrospectiv-e customers.
(k) Directly or indirectly to give, or permit to be griven, or offer
to give, mo~ney or anything of vanlue to agents, employees, or repre-
sentatives of customers or prospective customers, or to agents, em-
ployees, or representatives of competitors' customers or prospective
customers, without the know-ledge of their employers or principals,
as an inducemetnt to influence their employers or principals to pur-
chase or contract to purchase from thet makers of such gift or offer,
or to influence such employers or principals to refrain from dealing g
or contrancting to deal with competitors.
(1) The offering or giving of prizes, pr~emiumis, or gifts in. con-
nection with thle sale of products, or as an inuce~c~ment thereto, by
anys scheme which involves lotteryI misrepresenitation, or fraud.
r(m,) The publishing or circularizing threats or suits for in-
fringemlent of patents or trade marks or of any other legal proceed-
ings not in good faith, with the tendency or effect of harassmng comn-
petitor~s or intimida7tinig their customers.
(n) Seccuring confidential information concerning thne business of
a competitor by a false or misleading statement or representation,
br ~a false impersonation of one in authority, by bribery, or by any
other unfiair method.
(0) Nothing in this Code shall limit the effect of any a~djudieintion
by the Courts or holding by the F'ederal Trade Commission on com
plaint, finding, and order, that any practice or method is unfair,
providing that such adjudlication or holding is not inconsistent with
any pr~ovision o~f the Act or of this Code.
1. This Code anld all1 the provisionls thereof are expr~essly made sub-
ject to the'righ~t -of: theiF Presid~ent, in accordance wit'h the prov'isions
of subsection (b) of Section 10 of Title I of the Nationni Industrial
Reco very Act, fromt time to time to cancel or modify any order,
approval license, rule or regulation issued under Title. I of said Act,
and specifically, but without limitation, to the right of the President
to cancel or modify his approval of this Code or any conditions
imposed by him upon his approval thereof.
2. Such of the provisions of this Code as are not requiired to be
included therein by th~e National Industrial Recovery Act, may, with
the approval of the President, be modified or elimiinated~ as changes
in circumstances or experience mnay indicate. It, is contemplated that
from time to time supplementary provisions of this Code or addi-
tional conditions will be submitted for the approval of thle President
to prevent unfair competition in prices and other unfair destructive
and competitive practices and to effectuate thle other purposes and
policies of Title I of the 17ational Industrial Recovery Act.
No provision of this Code shall be applied so us to permit
monopolies or monopolistic practices, or to eliminate, oppress, or
discriminate against small enterprises.


This Codei shall become effective on the tenth day after its
approval by the President.
1. The following provisions shall apply only to the Vitrified
China branch of the I~ndustry:
(a) Each membler shall use as a basis for hris selling prices the
uniform white list and decorated list as now;F in use by the majority
of the industry or such lists, as they may be revised, at any future
time by the association, wCith the approval of the Admlinistrantor;
provided, however, that nothing inr this Code shall be construed as
limiting the percentages which members of this industry may extend
to reduce or mecrease such prices quoted in the uniform lists, except
as limited by ~Article VII, Section 2 (a).
(b) Each manufacturer of Vitrified Hotel China shall, within
fifteen (15) datys after the effective date hereof, file with t~he Code
Authority a price list and discount sheet, showing his current pr~ices
and discounts anld terms of payments. ~Any revision of such pr~ic~e
-lists and discount sheets shall likewopise be filed with the Code
~Authority and be effective ten (10) days thereafter.
(c) No manufacturer of Vitrified Hotel China shall, directly or
indirectly by any7 method whatsoever, sell any product of the indlus-
try covered by the provisions of this Article at a price lower or at
discounts greater than or on more favorable terms of payment than
on those provided in his current net price list or price lists and dis-
count sheets; and upon learning of any deviation therefrom, the
Code Authority shall notify any manufacturer who is selling at a
price lower than. as provided for in this Article, that his action is a
violation and report the same to the Administrator for such action
as may7 be proper in the premises.
(d) Terms of sale shall be one per cent (1%o) fifteen (15) days,
net thirty (30) days. With customers paying twice a month, one
percent (1%o) discount shall be allowed on purchases from the six-
teenth to the thirty-first, if payment is made onl or before the tenth
of the following month. On purchases from the first to t~he fifteenthl
the same discount shall be allowed if paid for by the tw\Tent.yr-fifth
of the same month.

1. The Code Authority shall prepare, or on use to be prepared, ade-
quate cost accounting systems, capable of uniform application within
ec~r.h branch of t~he. Indult~ry, and such cost. a~ccounting~ systems, when
approved by thne AIdmninistrator, shlall~be thle standard for both
branches of the In~dustry and no manufacturer may sell any of his
pro0duc~ts belowFP his cost, as determined byr the cost accounting: sy~steml
applicabdle to him, except as provided in Article VII, paragraphs 1


(a) Pend~ing the adoption and approval of cos accoulnting sys-
tems the Code Authority may call upon any member of either branch
of the Indlustrr for verified~ cost, figur~es.
Approved C~odre No. 120'l.
Reg~ist ry No. 103)3-1 -0(1.

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