Code of fair competition for the natural organic products industry as approved on January 25, 1935

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Material Information

Title:
Code of fair competition for the natural organic products industry as approved on January 25, 1935
Portion of title:
Natural organic products industry
Physical Description:
p. 19-37 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Plant products industry -- United States   ( lcsh )
Organic farming -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 613-04."
General Note:
"Approved Code No. 545."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004939957
oclc - 63654775
System ID:
AA00006647:00001

Full Text



















































UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1935


IN~aDUST`RY


UNIV. OF FL UBI.

C P


NATIONAL RECOVERY AD~MINI\ISTRATION




CODE OF` FA1IIR COMPETITION

FOR THE


NATURAL ORGANIC PRODUCTS


~~_


II


Foresale bythe SuperintendentofDocuments, Washington D.C. - Priceficents


Approved Code No. 545


Registry No. 613--04


AS APPROVED ON JANUARY 25. 1935


WE DO OUR PART


U.S. DEPOMrTORY


j

























This publication is for sale by thle Superintendent of Documents, Government
Printings Office, We h;lletonln D.C., and by district offices of the B;ureau of Foreign
and Domestic Commerce.

DISTRICT OFFICES OF THE DEPARTMdENT OF COMMBERICE

Atlanta, Ga.: 504 Post Office Euilding.
Eiminii haniil, Ala.: 25'7 Fedetral Building.
Boston, Ma~ss.: 1801 Custombouse.
Buffalo, N. Y.: Chamberlli~ of Commerce Eu~ildingl.
Charle lon.. S.C.: Chalmber of Commerce Building.
Chicago, Ill.: Suite 1700G, 201 North W'ells Street.
Clevel;ndi Ohio: Chambuller of Commerce.
D~allas, Tex.: Chln u herr of Commerce Building.
Dia~irn ~itr, M .: N1Il First Nationall Bank Building.
Houston, Tex.: Chlamber of Commerce Enlildine~.
Indlialnalc~ l.el Ind.: Chlartherl of Commerce Buildin~g.
Jacksonv11~ille, Fla.: Chamber of Commerce Building.
K~nusnsfl C~ity, MIo.: 1028 Baltimnore Avenue.
Los A\nulles, Calif.: 110;3 South Br;.ndwa~y.
Louisville, Ky.: 408 Fecdera~l Building.
M~emphiis, Tenn.: 2:'0 Federal Buill~inS.
M~inneapolis, Minn.: 218 FedelFral Building.
N~ew Or'leans L-a.: Room 225-A, Customhouse.
New York, N.Y.: 734; Custombouse.
Norfolk, Va.: 400 Eas~it Plume Sjtree~t.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsbulrdi, Pa.: Chamberi~ of Commerce ]Buildingr.
Portlandt, Oreg.: 21;5 New Post O~ffice Building.
St. L~ouis, M~o.: 506 Olive Street.
San. Francisco, Calif.: 310 Customhouse.
Seattle, W~ash.: 809 F~ederal O~ffice Building.











Approved Code No. 545


CODE: OF FAIR COMPETITION
FOR THE

NTATCURAL OIRGAN~~I[C PRODUCTS INDUSTRY

As Approved on January 25, 1935


ORDER

~APPROVING' CODE OF FAIR COMPETITION~ FOR THE, NATURAL ORGANIC
PRODUCTS INDUSTRY
An~J application having been, duly made pursuant to and in full
comnplianc~e with the provisions of Title I of the National Industrial
Recovery Act, approved Junle 16, 1933, for approval of a Code of
Fair Competition for the National Organic Products Industry, and
hearing having been duly held thereon and thne annexed report on
said Code, containing findings with respect thereto, having been
made and directed to the President:
NJOW, TH-EREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order Nlo. 6859, dated September 27, 1934, and otherw~ise;
does hereby incorporate by reference said annexed report and does
find that said Code complies in all respects with the pertinent pro-
visions alnd will promote the policy and purposes of said Title of
said Act; and does hereby order that said Code of Fair Competit-
tionn be and it is hereby approved; provided, however, that the Code
Authlority- shall obtain from members of the IndustryT and submit
to thne National Industrial Recovery Board at its request such labor
statistics as said Board may deem necessary for determining the
adequcyl~' of the labor provisions of this Code and within four
mlonthls from the effective date of this Code said Board shall conduct
such hlearings as it deems necessary to effectuate changes in said
Inlbor prov\isions of said Code and that any order the said Board
mnay make as a result of such hearings, data and information shall
have the eflFect of a conditions on the approval of this Code.
NATION-AL INDUSTRIAL RECOVERY BOARD,
B~y W. A. HAlRRIMANa, Administrative O~f)cer.
Approval recommended:
JOSEPHI F. BATTLE,
Division, Adm61~;i nfistrator.
W January fe5, 1935.


111843* 1465-~112 35


(19)













]REPORT TO THE PRESIDENT


Thne PRESIDENT,
The WCthite HZTowse.
SIn: This is a report on the Heari;ng on the Code of Fair Com-
pettition for the! Natural Orga~nic Products Indust~ry, held on April
20, 1934. The Code, which is attachedr'l, was presenlted~ by duly quali-
fled and authorized representatives of the Industry, complying with
statutory requirements and claiming to represent ninety per1cecnt, by
volume, of the Inldustry.'
In accordance with the customary prcedurtl~e every person who had
filed a request for appen rance was freely heard in public, and regu-
Ilator~y requirenwn!t- were complied with.
THE INDUSTRY

The Industry is divided into five divisions: The B~otanical Drug
Industry, the~ Essential Oil Industry, thle Spirit and Oil Soluble
G~umn Ldustry, the W~kater Soluble Gium Industry, and the Vanilla
Bean Industry. Thle Industry as a whole comprises about 170

There are no fiigure, available as to the capital inv\eitmntlt in
this Industry, but the volume of business in 1929 was about $50,000,-
000 andJ declined to about $23,000,000 in 1933. Thec Industry em-
ployed 1,958 persons in 19)29. This number fell to 1,852 in 1930 and
fell further to 1,'736 in 1931, but rose sharply to 1,916 in. 1932.
The five niall11 industries comprising the Natural Organic Products
Industry originally approached the National Recovery Administra-
tion separately, parking for separate Codes. Since it vwas foundll that
they had common. pl~~~~roles and overlapping functions they were
asked~~ to combl!~inet under one basic Code; a new7c trade association was
formed to sponsor this Code, admitting members of all five industries.
Since these indtust!ies were thus combined for the first time in their
exsistenrce and since th~ey wer~e composedl of many small and sc~atte~lred
units it was found difficult to obtain ncu~rltnte and complete staltis;tiCs
and information covering the new Indus~try3 thus formed, and a clear
picture of conditions within it was not obtainable.
FlusV,\ISIONS OF THE, CODE

The Code provides for a basic forty (40) hour week and a thirty-
five (35) cent minimum wagfe. The usecngr~e statistics which are avail-
able tend to indicate that this will promote little if any re-employ-
mlent or inilcre~c~ed purchasn~ilgr power in this Industry.
The hour, wage, general labor, and administration provisions in
the Code are cannon1101 to all ~five divisions of this I~ndustry. In addl~i-
(20)








tion, each division has a separnIater schedr~ule of trade practice rules
to be administered by its Divisional Code Council. The Schedules,
with minor differences, are identical and render enforceabnle under the
Code certain basic rules of fair trade practice which. have beecn fol-
lowed by the majority of the Industry in the past.
FIN DINGS.'

The Deputy Alm inist rator in his final report on said Code having
foundc as herein, set forth and on the baslis of all the proceedinlgi in
th~is matter:
The Board finds that:
(a) Said Code is wvell dlesignedl to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flowv of inter-state and foreign
commerce which tend to diminish the amount thereof and will
provide for the general welfare by pr~omoting the organization of
industry) for the purpose of cooperative action among th~e trade
groups, by inducing and maintaining united action of labor and
malnagement under adequate governmental sanctions and supervi-
sion, by eliminating unfair competitive practice, by promoting the
fullest possible utilization of thle present production capneity of
industries, byT avoiding ulndule restriction of production (except as
may be temporarily required), by increasing thle consumption of
indlustr~ial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improvinga
standards of labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
laees; and is not classified as a major industry.
(c)% The Code as approved complies in all respects with, the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Sect~ion 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associa-
tion is an industrial association truly representative of the aforesaid
Industry; and that said association imposes no inequitable restric-
tions on admlission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and wpill not op~ernte to discriminate against them.
(f) Those engagedl in other steps of th~e economic process have not
b~een deprived of the right to be heard prior to approval of said Code.
For these reasons, this Code of 'a-ir Competition for the Natural
Organnicr Products Inldustry has been approved.
For the National ICndustrial Recovery Board:
W. A. HA~RRIMIAN,
Administrative Offier.
JrJAntunr 25, 1935.













CODE OF` F~AIR COM/1PETITIONJ FOR THE-[E NATURAL
ORGANIC PRODUCT'S INDUSTRY

AR'ICIan; I-PRPOSES

To effect the policies of Title I of the National Industrial Recovery
Act this Code is establlishedl as a Code of Fair Competition for the
Natural Organic Products Industry, and its provisions shall be the
stannlards! of fair competition for such Industr~y and shall be binlinlg
upon every member thereof.
AtR~TCLE~ 1- ~EFINTITIONS

SECTION 1. The term Natural Organic Products Industry or
" Industry\ as used herein includes the following industries and such
related branches or subdivisions thereof and such allied industries
as may from time to time be included under the provisions of this
Code:
(a) The Botanical Drug Industry.--The term Botanical D~rug
Industry as used herein includes the merchandising and/or import-
ing and/or processing either as merchants or as custom millers, or
as both-, of botanical drugs~ and allied commodities.
(b) The E~ssen~tial Oil Indu~stryl.--The term L 1Essential Oil Indus-
try as used herein iw(-Indes~ th~e manufacture and/or redistillation
and/or merchandising and/or importing and/or packaging and dis-
tr'illflbutn of essential oils, floral products, animal fixatives, natural
ethers and altdehyd~s:, banlsams and aromatic gums, fruit and other
flavcors for re~-manu featuringg purposes, natural ar~omaltic products,
oleo resins and allied natural products and mixture~s of the above-
namned products and other aromatic chemicals known as special-
ties "' or "' compounds "; and includes the importation for resale of
synthetic arna~ll~tic= chemicals, but does not include the manufacture
or sale by the producer of synthetic aromantic chemicals.
(c) The Spirit andr Oil Soluble Gu~m Indusr~l~~ly.-TIh e term. Spirit
and Oil Soluble G~um Industry "' as used herein includes the import-
ing and merchzandising of spirit and oil-soluble natural resins, ex-
cep't shellac and naval stores, used in the maanufacture of paint,
varnish, lacquer, and miscellaneous other prodluctsi requiring nlaturlal.
resins.
(d) Thre Wa/inter Soluble Gu/m lIndiry~~~f.-T-Che term W~ater Sol-
utble Gum Industry as used~ herein. includes the importing and mer-
chandisinga and/or processing, either as merchants or as custom
millers, or as both, of water-soluble gums and allied commodities.
(e) The V'anilla B3ea~n Indust!rUl.--The term Vanilla Bean In-
dlustr~y as used herein includes the importing, merchandising and
dlistributing of tonka and vanilla beans.
(22)








SECIONJ 2. (a) T'he term member of the Industry as used
hJerein includes, but -without limitation, any individual, partnership,
association, corporation or other form of enterprise engaged in the
Indlustr~y, either as an employer or on his or its own behalf ; but
does not include a~ny person whose principal line of business is whole-
salinga or retaililgr under the operation of any wholesale or retail.
code unless such person imports for resale, and/or purchases for re-
sale from the primary source of raw materials, and/or performs any
processing or packaging operation upon any of the products of this
Industryp or any of its branches.
(b) The term. person as used herein includes, but without lim-
itationl, a natural person, or any partnership, association, corpora-
tion or other form of enterprise, or any government, governmental
subdivision or agency thereof.
SECTION 3, The term "L employee as used herein includes any and
all persons engaged in the Industry, however compensated, except
a member of the Industry.
SECTION 4. The termz employer as used herein includes anyone
by whom such employee is compensated or employed.
SECTION 5. The termzs President "', "Act ", and "Board as used
herein mean, respectively, the President of the United States, Title
I of the National Industrial Recovery Act, and the National Indlus-
trial Recovery Board.
SECTION 6. The term establishment as used herein mean-s anly
plant, laboratory-, or office or any branch thereof in which any of
the activities included in this Industry are carried on.
SECTION 7. Thle terma "Associatio~n as used herein means the Nat-
ural Organic Products Association.
SECTION 8. Deifinl'~ition of P7erSOnnelR.--(a) The term "L executive "
as used herein means an employee solely responsible for the manage-
ment of a business or a recognized subdivision thereof.
(b) The term "' outside salesman as used herein means a sales-
m~an who is engaged not more than fifteen (15) hours per weekr
inside the establishment or any branch thereof by which he is
employed.
(c) The term watrchman as used herein shall mean all employee
engaged primarily in safeguarding the premises and property of a
member of the Industry.
SECTION 9. The ter continuous process as used herein means
a process which once begun, cannot be interrupted until complete
without spoiling thne goods processed or rendering the workr done
valueless; and which must be attended throughout by the same indi-
vidual or individuals; and which cannot be begun at a sufficiently
early hour to allow of its completion within the eighft-hour shift in
which it is begun.
ARTICLE III-11URS

SECTION I Ra NIO em~sployee except as provided below shall be
p~ermitted to work more than forty (40) hours in any calendar week:
nor more than eight (8) hours in any twenty-four (24) hour period
except that during any eight (8) weekss in. one ygear employees may
be permitted to work. not in excess of forty-eight (48) hours per








week, provided thiat all hours worked in excess of forty (40) in any
one week or eight (8) in anly twenty--four (24) hour period are
compensated ast one and one-third (11/S) times the regular rate of
pay.
(b) The provisions of Subsection (a) of this Section shall not
apply to executives, supervisory employees, and scientific, employees
who are paid $35.00 or more per wreek, nor to outside salesme~n and
commission salesmen.
(c) Watchmen may work not in excess of fifty-six (56) hours in
any one week providedl they shall have one full day off in each seven

(d) aEmeploee nwhos work on continuous process require it, mayayprid
be permitted to wclork not in excess of twelve (12) hours in any
tw~ent~y-four (24) hour period, and not in excess of forty (40) ours
in anly one wveek.
(e) In case of an epidemic, catastrophe, or any emergency involv-
ing brealkdowns, or protection of life or property, such employees as
are necessary may be permitted to work unlimited overtime, provided
that such employee shall be paid at the rate of at least time and one-
third (~11/) or all hours workred in excess of the applicable maxi-
mum number of hours provided inl Sub-sections (a), (c), and (d) of
this Scctio~n. A report of each such emerge~ncy suhal be seny to the
Code Authority wPYithin thirty (30) days atrsc mrec vr
time work shall. have comme~nced, giving such details as the Code
Authority mnay prescribe.
SECTION 2. No employer shall knowingly permit any employee to
work for any time which when totalled with that already performed
with another employer or employers in this or anly other industry or
trade exceeds the maxima, permitted herein for such employee's
class of work.
SECTION 3. Employers who personally perform manual work or
engage in mechanical operations shal1 not woPorkr longer than the manxi-
murm permitted herein for such class of work.
~AerTICE IV WA7GES
SECTION 1. N~o employee shall be paid less than at the rate of
thirty-five cents (3514) per hour, except as herein otherwise provided.
SECTION 2. NO hourly, daily or full time weekrly compensation for
employees who are paid less than $50.00 per week shall be less than
such compensation existing as of June 16, 1_933; and no emplloyee
shall be paid a, wage rate which will yield a less wage for the shorter
full time~ wekcl herein established than he could have earned for thle
same class of wForki for the longer full time week~ existing as of cJune
16, 1933. Wagae increases established under the Presidbent's Reem-
ployment Agreemnent shall at least be maintained.
SuEcrrox 3. No employer or his agent shall accept any rebate on
wages directly or indirectly, or give anything of value or extend
favors to any person for the purpose of influencing rates of -wagaes
or the working conditions of his employees.
SECTIO:N 4. No employee shall be discharged and reemnployed at a
lower rate.
SECTION 5. At~ person whose earning capacity is limited because of
age, physical or mlental handicap, or other infirmity, may be em-









played on light work at a wage below the minimum established by
this Code, if the employer obtains from, the State Authority desig-
n atedl by the United States Depa~nrtme Int of Labor, a certificate auItthor-
izing such person's employment at such wTagTes and for such hours as
shall be stated in. the certificate. Such Authorityr shall be guided by
the instructions of the United States Departmnent of Labor in issuing
certificates to sulchl pcrsonls. Each empkr, yer shall file monthly with
thie Code Authority a list of all such persons employed by him showFl-
ing the wages paid to, and the maximlumt hours of work for such
employees.
SECTON 6. This Article establlishes a minimum. rate of pay which
shall apply irrespective of wvhethler an em~ployee is actually compen-
sated on a tirme-rate, piece-workr, or other basis.
SECTION 7. No employer shall reclassify employees or duties of oc-
cupations performed or engagl~e in anyT other subterfug~e so as to defeat
the purposes and provisions of the Act or of this Code.
SECTIONr 8. Female employees performing substantially the same
work3 as male employees shall receive the same rate of pay as male
employees.
STECTION 9. Wages S~hall be paid at least twice per month in lawful
currency, or by negotiable check payable on demandl~~.
SecTION 10. W~7ages shall be exempt from all fines or deductions anrd
from all payments for pensions, insurance or sick benefits other than
those voluntarily paid by5 employees or r~equ~ired~ by law.

ARTICLE V- GENERAL LABIOR PROVISIONS

Se--- --r--- --- ---- -IJ---~cions 1. No nperson under sixteenr (16) yeaRrs of Rage shall be em-
played in the Industry.
No person under eighteen (18) years of age shall be employed at
operations or occupaltions whih~r75 are hazardou i~-m~: n nature or dang11r~erous1
to health. The Code ~Authority shall submit to thne Board, within
six (6) months after the effe:ctive date of this Code, a list of such
operIa tons or occupations. In any Statl e an employer shall be deemed
to have comrrp~lied with the provision as to agae if he shall have on file
a certificate or permit duly issued. by the AuthlorityT in such State,
emnpoweredd to issue employment or age certificates or p~ermnits, show-
ing hatthe mplyeeis of the age required by this Section.
SETION 2e (a) Employees shall have the right to orga~nize and
bargain collectivecly, through representativet s of their owsn choosingr,
and shlll be free from the interference, restraint, or coercion of em-
ployers of labor, or their agents, in the designation of such representa-
tives or in self-organization or in other concerted activ-ities for the
purlpose of collective bargai n ing or other mutual aid or protection.
(b) No employee and no one seeking employment shall be required
as a co~ndition of employment to join any company union or to refrain
from joinmng, orgamizmg, or useisting~r a labor organization of his own
choosing.
(c) Employers shall comply with t~he maximum hours of labor,
minIim um rates of pay, and other condlit ions of employment approved
or pres"cribed by the President.
111343*--1465i-112--35-----









iSamI`on 3 Every em~ployer shall provide for the safety and health
of his employees at thze places and during the hours of their employ-
ment. Standards for safety and health shall be submitted by the
Code Authority to the Board wBithin three (3) months after the effec-
tive daste of this Code, and upon approval by the BEon rd, shall become
ecffect~ive as a part of this Cod~e.
SETIN 4. No provisions in this Code shall sup~ersede any State or
Federal law which imposes more string~ent requirements on employers
as to age of employees, wages, hours of wiork, or as to safety, health,
sanitary or general working conditions, or insurance, or fire protec-
tionl, than are unposed by this Code.
SECTION-, 5. All employers shall post and keep posted complete copies
of the labor provisions of this Code and all amedments th~ereto when
madel-l in conspicuous places easily necessiblle to all employees. Everyr
member of the Industry shall comply with all rules and regulations
relative to th~e posting of provisions of Codes of Fair Competition
which may from time to time be prescribed~c byT the Board.
SECTIn-jU 6. No employee shall be dismissed by reason of making a
complaint. or grivingr evidence with respect to an alleged violation of
this Code.
SECTrox 7. Employers shall arrange that the hours worked by any
employee during each day shall be consecutive, provided that an in-
tervaIl not longer than one hour may be allowedl for each regular meal
period, and such interval not counted as part of the e~mplIoyee's wor~k-
ing time. Anyr rest period wFchich m~ay be gi~ven. employees shall not
be dediuctedi from such employee's wor~kingtie
SEC'TION 8. No employer shall contract for work to be done except
where the person performing the contract is subject to the provisions
of this Code or the Code adopted by the industry covering such w~ork;;
and in. no case shall an employer avoid or evade the labor provisions
of this Code by contracting his work to any persons subject to labor
regulations less stringent than those provided in this Code.
ARTICLE VI-ORGALNIZATION, FOW\ERS AND TIESS OF THE CODE
AUTHORITY. ORGAlNIZATION. AND CONSTCITUION

SECTION 1. (a) At Code Authority is hereby established consisting
of one (1) mlemb~er from. each. D~ivisinal Code Coulncil, elected by the
members of each such Divisional Code Council to serve for one yvear
and until their respective successors shall be elected.
(b) Pending the election of the permcanent Code Authority, the
Board of Directors of the Association shall act as a temporary- C~ode
Authority.
SECTION 2. (a) The followringf Divisional Code Councils are hereby
e~nllsltabli conslListinga of five (5) members each, to administer the
separate trade prnc~tice schedules of this Code applicable to their
respective Divisions of this Industry:
The Botanical Drug Code Council
The Essential Oil C~ode Council
The Spirit &t Oil Soluble Gum Code Council
IThe Water Soluble Gum Code Council
The V~ana Bean Code Council









(b) The members of each Divisional Code Council shall be elected
in the following manner and shall serve for a term of onle year or
until their successors shall be elected:
(1) After the effective date of this Code, each Vice-Presi'dent of
t~he Association in charge of a Division shall appoint a nominating
Committee of three (3) which shall nominate at least ten (10p)
candidates. Any ten (10) mnemrbers of the Division may, in writig
submit an adldit~ional- nomination. Each such Vice-President shall
call an open Imeetinog of his Division to which shall be invited all
persons who are members of the Division and whose names can be
ascertained by reasonable diligence.
Each member of the Division shall be entitled to the number
of votes indicated upon the following table:
Aggregate Annual Sales Volume for the Calendar Year Corresponding
Preceding the Year in Which the ]Ellection is Held: number of votes
$25,000 or less_,_---- -- -- -- -- ---- -- ----------- --____ 5
$25.000.01 to $50,000___,_,-_--_---- --------------- 10
$50,0010.01 to $100,000_ _____------------_- ------- 15
$100,000).01 to $200,000---_-----,-__-_,---------------- 20
$200,00b0.01 to $400,000_-_,---__-__------------------ 25
$400,000.01 to $800,000-------------------__,---- ----- 30
$800,000.01 to $1,600,000 _--,--_-- ___ __ 35
M~ore than $1,60,000 _-------,----__, 40
Norm.--N-umber of votes must be comzputed upon sales of products included
under the definition of the Division. Sales in other Divisions or other Indlus-
tries cannot be counted in determining votes.
Voting shall be cumulative and each member may cast his votes
for any five or less number of nominees or may cast them all for one
nominee. The five (5) individuals receiving the greatest number
of votes shall be elected, and shall without delay elect one of their
number to membership on thLe Code Authority.
SETION 3. In addition to membership as above provided, there
may be three (3) or less members on the Crode At~uthority and on
each D~ivisional Code Council, without vote and without compsen-
sation from the Industry, to be known as Administration Members,
to be appointed by the Board to serve for such terms as it may
specify.
SECTION 4. Each trade or industrial association directly or indi-
rectly participatinga in the selection or activities of the Code ~Author-
ity or any Divisionlal Code Council shall (1) impose no inequitable
restriction on membership, and (2) submit to the Bo3ard true copies
of its articles of association, by-la~ws, regulations, and any amend-
mnents when. made thereto, together with such other information as
to membership, organization, and activities as the Board may deem
necessary to effectuate the purposes of the Act.
SCECTION 5. In order that the Code A-uthority anld DivPisional Code
Councils shall, at all times, be truly representative of the Industry
and in other respects comply with the provisions of the Act, the
Board may provide such hearings as it may deem proper; and there-
after if it shall find that the Code Aut~hority or any Divisionlal
Code Council is not trulyr representative or does not in other respects
comply with the provisions of the Act, may require an appropriate









modification in the method of selection of the Code .Anthority, or
any Divisional Cod-e Council.
SECOTIO 6. Nothling~ Conrtained in this Code shall constitute t~he
members of the Code Authority nor the members of the D~ivisional
Code Coun~c~il~s partners for any purpose. Nor shall any member
of the Code Authority or D~ivisional Code C~ouncils be liable inJ any
manner to anyone for any act of any other member, officer, agent, or
employee of the Code Authority or Diisiojnal Code Councils. Nor
shall any member of the Code Authority or Divisional Code Coun-
cils, exercising reasonabclelll dliligence in the conduct of his duties
hereunder, be liable to any-one for any ncotiojn or omission to act under
the Code, except for his own willful mal;~fasan~lce or nocnfema~nce.
SECTION 7. If the Board shall dlet~r~mine that any action of the
Code ~Authority, Divisional Code Councils, or an~y agency thereo~f
mary be unfair or unjust or contrary to the public interest, the Boalrd
may require that such action be susperledl:~ to afford an opportunity
for inv-~terstgion. of the merits of such action and further c~onsidecra-
tion by th~e Code Authority, Divisional Code Counc~il, or agency
pending final action which shall not be effective unless the Board
approves or unless it shall fail to disapprove after thirty days' notice
to it of intention to proceed withn such action in 'its original o.r
modified form~.
POWERS ANID DUTIS

SECTION 8. Sub~jc3t to such rules and regulations as ma~y be issuled
by the Board, the Code Authority shall have the following power~s
and duties, in addition to those authorized by other provisions of
thnis Code;
(a) To insure the execution. of the provisions of this Code and t.o
provide for the compliance of the Industry with the provisions of
the Act.
(b) T~o adopt b~y-lawvs and rules and regulations for its procedurle.
(c) T'o obtain from members of the Industryr such information
and reports as are required for the admlinistratioon of the Code. In
addition to information required to be submitted to the Code Author-
ity, members of the Industry subject to this Code shall furnish. such
statistical information as the Board may deem necessary for the
purposes':' recited in. Section 3 (a) of the Act to such Fiedteral and State
agen"'cis as it may de ignt'l;lt~ provided that nothingS in this Code
)hall relieve any member of the Industry of any existing obligations
to furnish reports to any Government agency. No individual report
Ihall be disclosed to any other member of the Industry or to any other
party except to such other Govelnrmnenta~l agencies as may be directed
by the B3oard.
(d) To use such Tradel~ associations and other agencies as it deems
proper for the carryingf out of any o-f its activities provided for
herein, prov-ided that nothling~ herein shall relieve the Code Authority
of its d~utics or responsibilities under~l this Code and that such trade
asso.ccCiatic. nsc and agecliescl shall at all times be subject to and coc~mply
with the provisions hereo~f.
(e) To de~r~legte to the Div-isional Code Councils such duties as
are n~ccessar~y to the proper administ ratio~n of this Code within their
respc~ltive D~ivisions, and to receive from such Councils recommendra-









tions and suggestions for the bettelrmen~rt of conditions w~ithin. the
Industry and for the promotion of harrromoious retlatio~ns with the
Consumer, labor and other industries upon matters of common inter-
est, provided that nothing herein shall relieve th~e Code Authority of
its duties or respo~nsib~ilities; under this Code.
(f) To make recommendat~rtiions to thne Board for the coordination
of the administration of this Code with such other~ codes, if any,
as may be related to or affect memberlltls of the Indulstrya.
(~g) (1) It being found necean rnly in o~rder to support the adminis-
tration-of this Code and to maintain the standards of fair consplleti-
tion established hereunder and to effectuate the policy of the Act,
the Code Authorityc is authorized:
a.. T~o incur such reasonable obligations as are nlel.essc;1y and proper
for the foreg~oingr purl' es~~, alnd to meet so h! obligations out of fulnds
which may be raised as hereinafter provided and which shall be
held in trust for the purposes of the Codet;
b. To submit to the Board for its approval, subject to such no.tic~e
and opportunity- to be heard as it may de~em necessary (1) an item-
ized b-udget of its c timaltedt expenses' for the foregoing purposes,
and (2) an equitable basis upon which the funds necessary to sup-
port such. budget shall be contr~ibuted~ by m-embers of the Industryr ;
c. After such budget and bas~is of contribution. have been ap-
provedc by the Board, to determine and obtain equitable contribution
as above set forth by all mremnbers of the Industry, and. to that end,
if necessary, to institute legal proceedings therefore in its own. name.
(2) Eachi member of the Industry shall payr his or its equitable
contribution to the expenses of the maintenance of the Code Auxthor-
ity, determined as hereinabove provided, and subject to such rules
anld regulations pertaining thereto issued by the IBoard. Only mem-
bers of the Industry complying with the Code and contributing
to the expenses of its administration as hereinabove provided, unless
duly exempted from making such contributions, shall be entitled
to participate in the selection of me~mbe~rs of the Code Aluthority
or to receive the benefits of any of its voluntary activities or to maker
us~e of any 'embleml or insignia of the National RIecovery Admin-
I~stLntLion.
(3) The Code Atuthorit~y shall neither inceur nor pay any obligation
subs~tantiall~y in excess of the amount thereof as estimated in its
approved budget, and shall in no event exceeed thne tolal amount con-
tained in. the approved hlu<1g-et, except upon apprvl~lc\ of the Board;
and no subsequent budget shall contain any deficiency budget item
for expendl~itUres.~ in excess of the required budget es~timates- except
w-hichl- the Board shall have so approved.
(h) To recommend to the Board any action or mea~ur~es dteemedc-
adv-~isable, including fur~ther fair trade practice provisions to govern
members of the Industry in their relations with. each other or with
other trades or industries; measures for industrial planning, and
stab~ilizatio~n of employment; and including modifications of this
Code which shall become effective as part hereof upon approval
by the Borard after such notice and hearing as it may specify.
(i) To appoint a Trade Practice Committtee which shall meet with
the Trade P~ractice Comnmittees appointed undecr such other codes
as may be related to the Industry for the purpose of formulating









fair trade practices to govern the r~elatio-nships between employers
under this Code and under such other codes to the end that such fair
trade practices mlay be proposed to the Board as amlendlments to this
Code and such other Codes~.
(j) Th-e Code Authority shall cause to be formulated methods of
costE findings andl nlelrounltingc capable of use byv all members of the
Industry, and shall submit such methods to t~he Board for review.
If approved by thre Board, full information concerning such
methods shall be made available to all members of the Industry.
Thereafter, each member of the Indutrys13 shall utilize such methods
to the extent found practicable. Nothing herein contained shall be
construed to permit the Code Authority, any agency thereof, or any
member of the Industry to suggest uniform additions, percentages or
dli~ferentials or other uniform items of cost which are designed to
bring about arblitrarly uniformity of costs or prices.
(k) To provide appropriate facilities for arbitration, and subject
t~o the approval of the Board, to prescribe rules of procedure and
rules to e-ffect compliance with awards and determinations.
(1) To appoint r~l1epreenttativs to serve on any Drug Industry
Coordinating Council which may be! established to be composed of
represenltatives~ from the various code authorities governing codes
which are dlil~retly related to the Drug Industry, and to act as a
planning and coordinating agency, and as an agency for the stabili-
zation of employment, for the entire Drug Industry.
(m) Wij'thin. one month after the effective date of this Code, to
appoint a committee to make a study w-ith a view to the establish-
meent, wRithin. three months following, of classifications and stand-
ards of dimensioning and quality, containers, weights, measures,
and labelling for products of the Industry, in cooperation with, the
_American Standalrds~l Association, the BEureau of Standards of the
United States Department of Commnerce, or any other organization
which will guarantee both~ consumer and Government represe,~ntation
in the a ra ft in~ of such standards.
S(n) TIo makre a study of the use by members of the Industry of
longr-termn contracts and to recommend to the Board any additional
trade pra"ctie rules that may be necessary to control such abuses as
may b~e found to exist in the use of long-term contracts. Such trade
practice rules shall become operative as a part of this Code upon
appnroval byv the Boarrd after uclh noticep ndr hearring as it may deem

ARTICLE VII GENERAL

SECTIONa 1. Excep~t as may be subsequently set forth. in a specific
or supplementary Explort Code for the Industry, the provisions of
this Code now or hereafter adopted with regard to prices, discounts,
deductions, allowances, extras, commissions or m~ethods and/or
terms of sale are not to apply to direct export sales.
SECTION 2. In addition to Articles I to XI, inclusive, of this Code
the attailched Schedules (AC, B, C, D and E) are supplementary to
and co~nstitulte part of the Code of Ftiair Competition for the Na-
tional -Orgnic Products Industry, and are applicable each to its
respective Division.









ARTICLE VIII--ATODIFICAT1 ION~

Sacnmow 1. This Code and all the provisions thereof aire expresslyl
m~ade subject to the right of the Pr~e-ihent, in. accordance wFith the
provisions of subsection (b) of Sect~ion 10 o~f the Act, from tilnw to
time to cancel or modify any order, approval, license, rule, or reg~u-
lation issued under Title I of said A'ct and specifically, but without
limitation, to the right of the Presidenlt to cancel or modify- his ap-
proval of this Code or anly conditions imposed by him on his
approval thereof.
SECTION 2. This Code, except as to provisions required by the Act,
mlay be modified on the basis of experience or changes in circum-
stances, such modifications to be based upon application to the
Board and such notice and hearing as it shall specify, and to become
effective on approval of the President.

Annous; IX-MOOPOLLES, ETC.

No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliamiate, oppress, or discrimi-
nate against small enterprises.
~ARCL E IZ-PRICE: INCREASESS

Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases, except such as may be required to meet individual cost,
should be delayed. But when made, such increases should, so far as
possible, be limited to actual additional increases in, the seller's costs.
ARHOCLE XII---EFETV DATE

This Code shall become effective on the second Monday after its
approval by the Preside~nt.
Approved Code No. 545.
Regstry No. 613-04.

















SCHEDULE AB


SUPPLEMENTAL PR~OVIIOh'S APPL~IGABLE TO THE BOTANITCAL DRUG INDIUSTRY

The following supplemental provisions shall apply to the Botanical D~rug
Industry :
SECTION I-DI~EFINITI~ONS

The term "L member of the Division as used in this Schedule includes, but
without limitation, any individual, partnership, association, corporation, or
other type of enterprise engaged in the Botanical Drug Industry, either as an
employer or on, his or its own behalf.

SE-oTIN II-TRADE PRBocTIE RULE

RULE~ 1. r\O member of the Division shall use advertising or selling methods
or credit terms which have the capacity or tendency to deceive or mislead the
customer or prospective customer.
RUCLE 2. Each member of the Division shall abide byT the following terms and
specifications of sale:
(a) The cash discount shall not exceed one (1) ~ercent, and shall. not be
allowed unless pan~uecnt is made within ten (10) days fromn date of shipment.
(b,) The net term of Ilayment shall not exceed thirty (30) days from date
of shipment.
(c) N~o guarantee or protection in any form shall be given a customer against
decline in the selling price of any product.
(d) Crude and milled botanical products, except for delivery within their
met~roprolitanu districts, shall be sold on a delivery basis of ex-dock: and ex-
warehouse, or f. o. b. carrier.
(e) Each sales contract shall contain a definite expiration date, and a spe-
cific variation not to exceed fifteen (15) percent between the minimum andr
mzaximum quantity.
RULE 3. NO member of the Division shall secretly offer or mak~e any pay-
m~ent or allowranee of a rebate, refund, commission, credit, unearned discount,
or excess allowance, whether in the formz of money or otherwise, nor shall any
member secretly offer or extend to an~y customer any special service or privi-
leg;e not extended to all customers of the same class, for the purpose of influ-
eneing a sale.
RULE 4. Allowances for weights of all containers sh~all be in accordance with
provisions of the official Tares of the New York Board of Trade.
(32)
















SCHEDULE: B


sUrPPLMWTL PnIovrIsows APPLICABLEF TO THE3 ESSENTIAL OIL IN'DUSTRY

Th following su~pplemental provisions shall apply to the Essential Oil
Industry :
SECTION I---DEFINITIONS

The term member of the Division as used in this Schedule, includes,
but without limitation, any individual, partnerlh2ip. association, corporation,
or other type? of enterprise e~rngaged in the Essentiall Oil Industry, either ats an
employer or on his or its own behalf.

SECTION II-TRADE PEACTIcE RULES

RUTE 1. No member of the Division shall use advertising or selling methods or
credit terms which have the capacity or tendenlcy to deceive or mislead the
customer or prospective customer.
RULE 2. NO member of the Division shall withhold from or insert in aIny
quotation or invoice any statement that makles it inaccurate in any materiala
particular.
RULE 3. No member of the Division shall brand or markr or packi any com-
modlity in anyT manner which tends to deceive or mislead purchasers wTith
respect to the brand, grade, quality, quantity, origin, size, material content,
or preparation of such commodity.
RULE 4. No member of the Div~ision shall use advertising or other representa-
tion which. refers inaccurately in, anly material particular to any competitors
or their commodities, prices, values, credit terms, policies, or services.
RULE 5. No member of the Division shall give, permit to be given, or directly
offer to give, anything of value! for the purpose of influencing or rewardring~
the action of any employee, agent, or representative of another in relation
to the business of the empl~loy er of such enip~llla re, the principal of such agoent,
or the rep~resentedcu party, without the knowledge of such employerir principal,
or parlty. This provision-shall not be construed to prohibit free and general
dlistrib~utio~n of articles commonly used for advertising except so far as such
articles are actually -used for commercial bribery as hereinabove dviined!.
RULEI G. No member of the Division shall makre any unauthorized use of
any copy, counterfeit, or colorable imitation of the trade ma~rk, label, or identi-
fring name or device of the products of another, so as to deceive or mislead
p~urhas~ers or prospective purchasers.
RUL 7. No member of the Division shall secretly offer or make any pay-
ment or allowance of a rebate, refund, commission, credit, unearned discount or
excess allowance, whether in the form of money or otherwise, nor shall any
member secretly offer or extend to any customer any special service or privi-
lege not extendled to all customers of the same class, for the Ilurpolcse of influ-
eoncing a sale.
Romez 8. Each member of the Division shall abide by the following terms and
specifications of sale.
(a) No member of th~e Industry shall willfully induce or attempt to induce
the breach of existing contracts between compIetitors and their customers by
any false or deceptive means, or interfere with or obstruct the performance
of any such. contractual duties or services by any such means, with the purpose
and effect of whimpering, injuring or embarrassing competitors in their business.
(b) No guarantee or protection in any form shall be given a customer
against decline in the selling price of any product.
(c) Each member of the Division shall use a contract forma which states
delivery specifications, price, style and size of container, delivery point, and
terms of sale.
(33)







34

(d) The cash discount shall not exceedl one (1) percent, and shall not be
allowcedl unless paymn~rrt is made within ten (10) days from date of shipment.
(e) Thle net term of payment shall not exreed thirty (30) days from dlate of
shipment.
(f) No member of the Division shall ship upon ccmusignment except as may
be permitted by the Board.
RULE~ 9. Any natural impurity in or sophistication of a product of which
a member of the Division knows or has reason to know or could reasonably
determine shall be clearly set forth on the label and invoice for said product.
RULE 10. No member of the Division shall makre any contract of sale relating
to imported products and/or products of the Industry which are manufactured
from imported raw materials or are a blend of imuportedl and domestic products
which is to endure for a period longer than, six (6) months.
















SCHEnDUILE Oj


3UP3PLEM4ENTAI, PROVISIONS APPLICABLE TO THE SPIRIT ABND Ort SOLUL GUM
INDUSTRYT

The following supplemental provisions shall apply to the Spirit and Oil
Soluble Gum Industry :
SECTION I-DrewrrIIONS

The term member of the Div~ision as used in this Schedule, includes, but
without limitation, any individual, partnership, association, corporation, or
other type of enterprise engaged in, the Spirit and Oil Soluble Gum. Industry,
either as an. employer or on his or its owFn behalf.

SECTION 11--TRADE PRACTrICE RULES

RULE 1. No member of the Division shall use advertising or selling methods
or credit terms which have the capacity or tendency to deceive or mislead the
customer or prospective customer.
RULE 2. No member of the Division shall withhold from, or insert in any
quotation or invoice any statement that makes it inaccurate in any material
particular.
RUL 3. NO member of the Division shall brand or mark or pack anly com-
modity in any manner which tends to deceive or mislead purchasers with
respect to the brand, grade, quality, quantity, orrigin. siz;e, material content,
or preparation of such commodity.
RULE 4. NO melltLIberT of the Division shall use advertising or other repre-
sentationl which refers inaccurately in any material particular to any com?-
petitors or their commodities, prices, values, credit terms, polices, or services.
Rura 5. No member of the Division shall give, permit to be given, or
direct ly offer to give, anything of value for the purpose of influencing or
rewarding the action of any employee, agent, or representative of another in
relation to the business of the employer of such employee, the principal of
such agent or the represented party' without the knowledge of such employer,
principal, or party. This provision shall not be construed to prohibit free
and general distribution of articles commonly used for advertising except;
so far as such articles are actually used for commercial bribery as herein-
above defined.
RULE 6. No member of the Division shall secretly offer or make any pay-
ment or allowance of a rebate, refund, commission, credit, unearned discount
or excess allowance, whether in the form of money or otherwise, nor shall a
member secretly offer or extend to any customer any special service or privilege
not extended to all customers of the same class, for the purpose of in~fluencing
a sale.
RULE 7. Each member of the Division shall abide by the following terms
and specifications of sale:
(a) No guarantee or protection in any formo shall be given any customer
against decline in the selling price of any product.
(b) The cash discount shall not exceed one (1) percent, and shall not be
allowed unless payment is made within ten (10) days from date of shipment.
(c) The net terms of payment shall not exceed thiirty (30) days from date
of shipment.
(d) Each muember of the Division shall use a contract form which states
delivery specifications, price, style, size of container, delivery point, and terms
of sale.
(e) No member of the Division shall make any contract of sale relating to
imported products and/or products of the Industry which are a blend of
imported and domestic products which is to endure for a period longer than
six (6) months.
(35)
















SCHrEDUL]E D


SUPPLEMENT~L; PROVISIONs ArracARBEI To ram WATER, BOLUBuc GUx INDlSTRY

The following supplemental provisions shall apply to the W~ater Soluble G um
Industry :
SmarlIow I DEFINITIONS9

The term member of the D~ivision as used in this Schedule, includes, but
without limitation, any individual, partnaershzip, association, corporation, or
other type of enterprise engaged in the Wiater Soluble Gum Industry, either as
an employer or on his or its owFPn beh~alf.

Su~rrIox II--TRLnn PR~criG~c1 RUL~s

RULE 1. No member of the Division shall use advertising or selling methods
or credit terms which have the capacity or tenldenlcy to deceive or mislead the
customer or prospective customaer.
RULE 2. No member of the Division shall withhold from or insert in any
quotation or invoice any statement that makes it inaccurate in any material
particular.
]RULE: 3. NO member of the Division shall use advertising or other representa-
tion which refers innco~urat ely in any material particular to any competitors or
their commodities, prices, values, credit terms, policies or services.
RU;LE 4. 1Each member of the Division shall abide by the following terms and
specifications of sale:
(a) The cash discount shall not exceed one (1) percent, and shall not be
allowFed unless payment is made within ten (10) days from date of shipment,
in United States funds.
(b) Tlhe nlet terms of payment shall not exceed thirty (30) days from date of
shipment, in United States funds.
(c) No guarantee or protection in any form shall be given any customer
against decline in1 the selling price of any product.
(d) Each member of the Division shall use a contract form! which states
delivery sp~ecifications, price, style and size of container, delivery point, and
terms of sale.
(e) Except for deliveries within. their metropolitan trading areas, all members
of the Division shall make all shipments F. O. B. cars point of shipment.
RULE 5. No member of the Division shall secretly offer or make any payment
or allowance of a rebate, refund, commission, credit, unearned discount or excess
allow-ance, whether in the form of money or otherwise, nor shall any member
secretly oBfer or extend to any customer any special service or privilege not
ex tendedl to all customers of the same class, for the purpose of infuencing a
sale.
RULEi 6. No member of the Division shall make any contract of sale relating
to imported products and/or products of the Industry which are a blend of
imported and domestic products which is to endure for a period longer than
six (6i) months.
(36)
















SCHEDULEl Ei


SUPPLEMEnNTAL pgvROVIIONS APPLICABLE TO THEI VALNILA BEAN INDUSTRY

The following supplemental provisions shall apply to the Vanilla Bean
IndustryT:
SECTION I----DEFINITIows

The term member of the Division as used in this Schedule includes, but
without limitation, any individual, Ilaritnersh~lil, association, corporation, or
other type of centerprise enance."(~ 1 in thle Vanilla Bean. Industry either as an
employer or on his or its owYn behalf.

SECTION II--TI:ADLE PRACTICE: RULES

RULE 1. No member of the Division shall use advertising or s -11ine~ methods
or credit terms which have the capacity or tendency to deceive or mislead
the customer or prospective customer.
Run 2. No member of t-he D~ivision shall withhold from or insert in any
quotation or invoice anly statement that makes it inaccurate in any material
particular.
]RvLJE 3. No member of the Division shall brand or mark or pack anly com-
Inodlity in anly manner n hirch tends to deceive or mislead purchansers with.
respect to the brand, grade, quality, qlulntity', origin, size, material content,
or preparation of such cInunll.nllity.
RULE 4. T\O member of the Division shall use Ilfvert fisIng or ot-her representa-
tion which refers inaccurately in an~y material parl~tic~ular to any competitors
or their commnodities, prices, values, credit terms, policies, or services.
RULE 5. No member of the D~ivision shall secretly offer or make any payment
or allowance of a rebate, refund, commission, credit, unc.:lurned discount or
excess allowance, whether in the form of money or otherwise, nor shall any
member -;ecretly offer or extend to anyl~ customer anly special service or Ipriv'il~ee
not extljndetd~ to all customers of the same class~, for the purpose of influencing
a sale.
RTLF. (. Each member of the Division shall abide by the flllll~l\vig term11s and
specifications of sale:
(a) The cash discount shall not exceed one (1) percent, and shall not be
allowTed unless payment is made within ten (10) days from date of shipment,
unless it takes Ilonger than ten (10) day~s to makre d-eliv-eries, and in such case
thle cash discount period shall not exceeed thirty (30) dlays.
(b) The net terms of panyment shall not exceed thirty (30) dlays unless,
it takes longer than ten (10) dlays to make deliveries, and in such ease the
net terms of payment shall not exceed forty-five (45) days.
(c) No guarantee or protection in any form shall be given any customer
against decline in thze selling price of anly product.
(d) Mperchandise, exceept for delivery within metropolitan limits, shall be
sold only upon a delivery basis from home office of seller, ex-dock, ex-ware-
house, or F. O. B. carrier.
(e) Each member of the Division shall use a contract form which states
delivery specifications, price, style and size of container, delivery point, and
terms of sale.
RUvLa 7. No member of the Division shall make anly contract of sale relating
to imnpl-rted products and/or products of the Industry which are a blend of
imported and domestic products which is to endure for a period longer than
six (6) months.
(37)




UNIVERSITY11 OF1111111 FLORIDA1 11111111111