NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COM/IPETITIONI
FURNITURE AND FLOOR W~AX
AND POLISH INDUSTRYr
For sale by the Superintendent of Documents. Washington, D.C. Price 5 cente
Approved Code No. 224
Registry No. 625--02
AS APPROVED ON JANUARY 23, 1934
GOVERNMENT PRINTING OFFICE
WASHINGTON : 19341
This p~ublien~tion is for sale by thze Suieri'ltntecndt of Dlculments, Govermnent
Printing Office, Wash4inllon.ll D.C., sul( b3Y district oflfice~s o~f ther H~umanI of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THEI DEPARTMENT OF COMMERCE
Atlantac, Ga.: 504 Post Offie D~uildling.
lir~mingllluim, Ala.: 257 Fedesral IBuib~ling.
Boston, M~ass.: 150,1 Customhouse.
Buffalo, N.YL.: Chamber of Commerce B3uib~lin~.
(h1'Charleston S.C.: ChasherllCI of Com1mer~ce Buliblilng.
ch'lil-nge, Ill.: Suite 1706, 20.1 North We~tlls Street.
(Clo wk a.111, Ohio : Chamber of Commnerce.
Da~llas, Te'x.: Chamber of Commerce B3uildling.
D~etroit, Mlich. : `11 First Na;-tional Bankt I;ulhling.
H~ouston, Tex.: C1ubbrler of Commerce Duilklinrg.
Ind'ianapoI~rlis Ind.: Challmbcr of Commnerce Bluildiing.
Jacksonville, FLa.: Chambeh r of Commerce LDuibling.
Kan. LoS Angless.l Calif.: 1103 South ]Broadway.ny
Louisville, Ky.: 408 F~ederal B~uildlingF.
Minneapolis, M\inn.: 213 Fedleral B~uildfin~.
New Orleans, La.: Rloom 225-A~, Custombhouse.
Newv Yorkz, N.Y.: 734 Customboose.
Nor~folk, Va.: 400~ Ealst Plume Street.
Philawlelll~hin. Pa.: 422 Commercial Trust Buildling.
Pittsburg~h, Pa.: Chiamber of Commerce Buildling.
1Portlandl, Oreg.: 215 New~ Post Ofilee B~uildingR.
St. Louis, Mdo.: 506 Olive Street.
Ban F~rancisco, Calif.: 310 Custombo~use.
Seattle, Wash.: 800j! Federal Officer Building.
Approved Code No. 224
CODE OF FAIR COMPETITION
FURNITUfRIE AND) FLOORIQ WAX~1 AND POkISH
~As Approved on January 23, 1934
APPROVING CODE OF FiAIRE COMPETITION
FUIRNITUTRE APND FLOOR WVAX AND) POLISH
Anapplication having been duly made pursuant to and in full
compliance with the provisions of Title I of the N~ational Industrial
Recovery Act, approved June 16i, 1933, for approval of a Code of
Fair Competition for the F'urniture and Floor W7axr and Polish
Industry, and hearings having been duly held thereon and the
annlexed report on said Code, containing findings with respect
thereto, having been maade and directed to the President:
NOW', T'HEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursua~nt to authority vested in me by Executive Orders of the
President, including Executive Order ]No. 6543-At~, dated D~ecemnber
30, 1933, and otherwise; do hereby incorporate by reference said
arulexedl report anld do ~findl that said Code complies in all respects
w~ithl the pertinent provisions and will pr1omlote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator for Industrial Reicovecry.
GEO. L. BERRY,
Januaryi Ed, 1934.
THEFE PaviENI)~ T,
The WTlhitei H~ouse.
SmR: This is a repor,,lt on, thle Code of Fiair Comupetition for the
Furniturep aIndl Floor Wax~:l and Po~lishl Induslltry a hearingr on whlichl
was~ conduc~1~.ted in neeordancelr~e with the pr,1ovisions of the National
Indusltr~ial Recovery Act. The hearings was~ held in the Gridiron
Roomn of t~he H~otel W~illard in Wue-hling~ton on January 4, 1934.
]PROV1SlIlNS OF THIE CODElt AS TO ~AGES A~nD HOUlRs
This Code .
of 40 hours per week~;1 in any thllcree-onthi pecr~iod, but in no cnsei, except
that of watc.hllnenl in Iexce--~ of 48 hours~ in any one wee~tly. Frloml these
prov'iSionS there are texemptedte c the following: classscr of empllloyees:
(a) Techn~ical or professional employees,3'c such asi chemists enlgagred
in their technical or pro~fe.-ina~ll capacity, wh-o rceiv~;\e mor',le than
$35; per weekll, but not inc.l~cluingi skilled. operation~ personnenll; em-
ployees in a maurnaglerial, supervi\ ory, or exeen~tive enpncity whio
receive $35 or morl!e pe~r week~l; supler~visors or highrly sklilledl workers
in tconlt inuous!lc prlo!''e~ es here rst rict ionl of hours woud1 1 u11n avoidanbly
redc~uce produ-~l~ction and who rece~iive $3.1 or morel' per'1 week(': employ03' ees
on emel~rgencyy ma;1i int enancC. alndl rcpai r wcrk; andl ou~tsider csalesmeln.i
(b) Emlployeesc on automotive or horse-dra wr n passe~nger, exP~press,
delivery, or freight serv~ice-wfho shall noc~t be petrmittled to work in
excess; of an average~~c of 44 hoursl'. per w-eekr in any\ threeC'-mo~Cnt thpriod.
(c) E~ngineersY firemen, waterl tenders, andlc cilers~, whfo ?;hall not be
permittedr to w~orkI in excess of 48 loulrs a weeck.
(d) Wantchmen, who shall not be p~ermi-ttedc~ to worIk in xcessc of
56i hours per week1.
Prov-ision, is madel~ for payment aIt thei rat~e of. timie and1 oni thiird
for overtime! w~ith~ minor cexempltions specified.,
The Codie provides~ for a mlinlimumlll wagC of 40)C(Lf centsl perour
ecsept as follows:
(a) Emlployees engaged~l in th~e light tasks of wra~pp~ing, pa1ckaging,
filling, and Inbecllingr, whor shall be paid not less tha~n 35(11 per' hourl.
(b) Office bo!-s and amrfic girls may be emplllo-edt at a rateC not) less
than $1i2 per week~l~l, prov~ialedc, howevercl th~at nc.t more( thaln ,r,'. of
file fta~tl Blillrlief Of OFIcPc (10plovets(( of eueEl c.tablt~ -illnelllt I1IMIV 11(
so cIn.<-iiiedr ad1I further prIov-ide'd, tha~t. each ca tabllidanen ninylll~e be:
ob~tit~cle to at 'lias one.;~l uch employcc.
Thec miinimumir wage1~( for emplloyees11'c engagedIY inl theC jligtpfaig
Ecowonwl ]EFFECT OF TH-E CODE
The Codet was presented by the National Polish and Miop Ma~nu-
facturers Associaztion and the National A~ssociation of Chemical Spe-
cialty Ma ~nuIIfact ure rs. These groups, comlbinedl, are said to represent
sevent.y-five percent of the sale's volume of the industry. The pres-
entat~ion of the Code by the t~wo groups reflects a desire upon the
part of the Indulstr~y to cooperate under the terms of the Act and
The Indulstry is reported to consist, essentially, of about 250 con-
cernls which are engalgedl in the manufacture, including packaging,
of products containing wax and /or oil compounds for use in the
tr~eatment of floors and furniture. There are about ten large con-
cerns whlich emrploy upwards of 35 persons each, a few slightly
smaller ones, and a large numlber of one or two!-man. establishments.
These sma~llest establishments may be independent*and owner-oper-
ated or they may represent a side-line or by-product activity of con-
cerns wh~osie chief produl~cts are paint, v-arious kinds of polishes, soap,
oils, chemical specialties, mo~ps, etc. About 10%f of manufacturers'
sales are in bulk implying the use of five-gallon or larger contniner~s
and made eith~er to large consumler~s or packaging concerns. TIhe
gr~eater part of the products of the Industry is sold in small units
t~hroughl regular dis~tr'ibutinlg Channelltlsc of the hardware and grocery
Since the products are chiefly semniluxsuries, the dlemndnr for them
is largely influlencedl by gesneral bu iness~ conditions, that is, by the
amount of moc.ney that people ha~ve to spend~ for other than absolutet
There are two sensonalz l peaks,! spring and fall, in thea dlemand~c .
Although the Ilarge :firmlls makle etfforts to anticipate peak demandlcs
by buildingr up stocks to some extent, there are practical dlifficulties
fitha ilprevent storingc for Ilongl periods. Limitations of working capi-
tal tend to restrict manunfactture for stockl esp~ec~ially by the small
Manufacture is so widlesprendl and so re~lativel~y easy to start on a
small scale that there is generally sharp comper~titin for all available
b~usinless~ both amlonlg nationally adver~ti;sed b~~lrans and botwreen these
and p~urely local products.
Fliroml culrrenlt du ta, thec Indlust ry may be said to employ about 2.500
persons. This figure indlicateis a drop in. employment since 1928,
whnen, it is estimatedl, 3,100 p~ersons were employed.
The aggregate production capacity for the Indu try is computed
to be $40(,0)00,000O. Aggregate annual sales in 1928 are stated to have
dropped in 1933 to $9,530,00l0 as compared with $;114,600,000) in 1998.
The IndustryS, working under a genler~al 419-hour weeks, has restored
emlploymlent practically to the 1928 figures. Further imlpr~ovement
in gieneral1 business conditions invokringa the overtime pr~ovisio~n of
the Code, as pr~ovided for peak periods, should result in additional
Thle Codle provides2 a mninimumn hourly rate of 35 cents per hour
for e~mployees engaged in lig",ht insks of w\rap~pingr, ~pckaging,9 etc.,
and a m~inimumn of 40 cents or all other classes of empllloy~ees except
office boys and girls.
Operating onl minimum hourly raRtes of 82.5 cents and 35 cents per
hour, respectively, for thne two c~lasses of work, under the President's
Reemp~loyment Agreement, mninimuml weekl;y earnings were higher in
October 1933 thnan. in June 1928. App~lientionl of t~he Code provisions
shlouldl increase minimum wag~bes somewhat furt~her.
Payrolls, it has been estimlated, will be~ increased about 10%~ under
the app~lication of thie Code's labor provisions. This should restore
payrolls to a point somewrhat albove thant of 1928.
Thle Deputy Administrator in his final rep~iort to me on said Code
having folndi as here'inl set for~th and on the basis o~f all the pro-
ceedlingsrt in this matter;
I find(- that:
(a1) ~Sa~id Code~is well designedrc to pr~omote~ thle policies aIndl pur-
poses of Title I of the Natiolnal Industrial Recovery Act, includ'ingf
r~em~o\-al of obstructions to tlhe free flow of interstate and foreign
commer~l~ce which te~nd to diminish th~e amllount therleof and will pr~o-
vide for thle general welfare by pl~romoting= the orga~:nizatlion of
industry~ for thle purpose of coopera1tive ac~tionl :lol(ng the tirade
groups, by ind7ucingr and maintainingr unitedl action of lahor andr
mainagemnent under ndequarte g~ovclrllcnme1 ntlsnctions andl superv\i-
sion, byv elim~inatling unfair competlitivc prac~til~c by pr'(llomoinS the
fullest, possible uitilizntioni of theprsntprdet capacity of
industries, by avoidingr undue restrictionll of p,1rodnctio~n exceptt as
may be tempo"rarilyy I~reuiredl), by increa~sing the consumnptio n of
indu;str~ial andl agricultural products throughl~l inl'creaing~ p!ur`chasigr
power, by producing and reltie~ving unlemplloymennt, by implroving
standards of labor, and by o~therw~ise rehabilitating indu~~stry.
(b) Said I~ndustry normally empllloys not more than 50U,000 em-
plyes; and is not clnssifie-d by me~I as a major industry. il py
tinent provisions of said Title of said Act, including without limi-
tation Subse?~cticnl (a) of Section 3, Subsec~rtion (a) of Section 7,
and Suibsectionl (b) of Section 10 thiereof; and(J that the applicant
associations are industriln associations truly representatives of the
a~foresaidt Indu~st~ry; and that said asisoc~iations impos~ce no nequrl-
table r~estr~icions:I1 on admissionl to membership thlertinl.
(d) Thie Code is not designed to andl will not permiiit m~onopolies
or mionopolistic pranctices.
(e) Thec Codeo is not de~signecd to andi will niot eliminate or oppress
small enterprise~ s anid will not opleraite to discr~iminate against them.
(f) TIhose ei~ngged2 in othri step~s of th~e econiomiic process have
not been dep~rivedl of thert right to be heardit prior to aIpproval of said
For thes.-e reasons this Code has been a pproved.cd
Hean;I S. JouxlIsoN,
JAxeNy'~ 1?3. 1934.
CODE OF FAIR COMPETITION
FURNITURE AND) FLOOR WAX AND POLISH INJDUSTRIY
To effectuate the policies of Title I[ of the National Industrial
Recovery A~ct, the following provisions are establish~ed as a Code of
Fair Comipet~itionl for thle Furniture and Floor Wax and Polish In-
dustry, and shall be the standard of fair coml-petition for such indlus-
tryl and3 hall be bindingr upon0 every member thereof.
ArTICLE II TEFINITIONSS
Tle term industry as u ed1 herein includes the manufacture,
ilc~ludinlg packaging, of products collntainig wax and/or oil c.om~-
p~ounds as essent~ial constituents, for use in the treatmnent of floors
andt fulrniture,, andi such related ind7ustries as may from time to time
be inc~ludled under the provisions of this Code.
The term "' employee as used~c herein includes anyo.cne engaaged in
the mdtustry, in anly capacity, I~reeivmng c~ompe~tnsationI for his services,
i rres pective of the natRelL' or method of payment of such
Tle, term emloyer',~ as used herein includles'anyone by whom
any' such employee is compensated or employed.
Thle term member of the industry includes anyone engaged in
th~e industry as above dlefned, either as employer or on his ow~n
Thle term "Associations as used herein means the ~National Po~lish'
andi 1\lop Ma~nufacturers Association and the National Association of
Chem ical Specialty ~a nurifactu rers.
Thle terms Presid~ent"', "Act ", and "Administrator ", as used
h~erein shall mean respectively the Presideit, of the United States,
Title I of the National Indulstr~ial Recovery Act, and t~he Aidministr~a--
tor for Indulstrial Recovsery.
A. No employee shall be permitted to work in excess of 8 hours
per dayS or a~n average of 40 hours p~er week; in any thr~ee-mlonth
period, but in~ no case mn ecctss of 48 hours in any one w-eek;, except
1. Technical or professional employees, such as chmc~ists, (equeedL~C
inl their technical or pr,1ofessio~nal capacity, who rIeceive mlor~e than
$35 per week, but not inchl~.iling skilled operating personnel; em-
p'loyees in a anatungerinI. su~permiory, or executive capacity who
r~ecive $:35 or mor,1e p~er' week-; supervisors or highly skilled workers
in rconltinulous processes where restriction of hours would unavoidably
rredcellc production and w~ho rtc~eive $35 or mrlcre! per week; employees
on emergency mal~intenancle and repair workr; and outside salesmen.
2. Empllolyees on autlomotive or horse-drawn passengers, express,
delivrry, or freight serv\ice, wTho shall not be permitted to work in
excess of an averagTe of 44 h~ours per wveek~ in anyr th'ree-month period
or in excess of 48S hoursI' in any calendoar week;.
3. Engineers, fir'llemen, wateri' tenders, andl oilers, who shanll nlot be
p~elrmittedl to wForkI in excess of 48 hours a weekr.
4. Wfiiatchnmen, who shall not be p~ermittedr to wiork: in excess of
5j6 hours per week~2.
B. If any empiloliyee, w\ithi the exceptionl of those emll,`oyees inlcludled
in ~Section Ai (I) wch o receive $33~ or mlor~e perl w~eek, oultside salesm~en
and watchmen-but not incluldingr emploll-yees on c~iemegencyv mainte-
nance and repair workr--work~s in excess of 8 hlours in anyr 94-~hour
period, or in exrcess of 40 h~ourls in any c-nlenarll1 week, thre w-age paid
for exScessc hours shall not be less than one andli onie third the regularly
C. If any emloyel~ic e worksli for more thalnl oneI( ciIeployer no suchil
nmpoye or~ employers shal knowi\\;ngrly permit, any employee to wFork
for a total numbl~er of h~ours m excess of the nu~mber of hlour~s pre-
scl~lribed, andi all e-mployers in the industry t.1shal~sl exerd.- due dili-
gerel. to carry oult the purp'lose of this secctioni.
D). No emlol!y\ e~ shaltll be p~ermittedl to work more~ than six days~ in
anyv ca;lcl~11ndor wee.
ARTICLE ITY Y;TAGER
A. No employees shall be paid less than 400! per hour, ecsep~t as
1. Emprlloyees ellngaged in 1the~ light insk~s of wra1pping, ,pnekaginlg,
filling, and Inbelingr, wh-o 1hall be paid no~t less than 33@ per hour.
2. Office boys and ofic~e girls nully be emlployedc at a ra~te not less
thn 12pe wek rovidedc, howevetr, that not morel than 5%~
ofthen totalp number of office employees of echc'1 estab`llishmelntl~ may
be so c.lassifiedl and furtherC'1 prov,\ideld, thatl each_ establ\l i:11hmelf nt y
be entiitled to at least one such emp~loyeer.
3. Th-is article estab~lishes~ a mlillillnum~l ratel of paly, regnedl'cless of
whe~lther an emlployee-lc is ~ompel~nsatdc- on. a timel ra:te. piceework,~f c or
4. Female empllloyees~ per~forrming~ whetantlliallly theC sadie worrk as
male1~ emnployeesI ~ shall reCeiv the.Cff same ra;tes of pay aIs ma~;le emp~loyees.
5. Empllloyrers shanll adljust wng~e scclchdules in equlitablle~ relationl to
the minimum hourly.1 3 rates~ prov'\ided in this Article, so far as such
ardjusrtnwlcnts have( not beenl mad~e~s~l~ subsquet. to Jun~e 1G. 11933~. In no
casec .chlall h-ourly rantes h I~reduced. n Ea ich memberof thle Induistry
shall promptlllyf3 I' report all whn1 ad~justme~nts to thle Codel~ Authlority.
G. An emloyee~\''l shall rcce~ive a11ll money due for serv\ic'r' rendlered
in the frm.I'1 of nego'(t iab)le' currency or cheectks wFithtoutf rleduCfCtion there-
-fromi ecepllt with his needlf or as required'l'~ by Federa'l or State laws.
ALRTICLrE V---GENERAL LABOR PROVISIONS
1. No person un~er 16 years of age shall be employed in the indus-
try, nor aanyone under 18 years of age at op~erationls or occupations
hazardous in nature or detr~imlentllt to health. A list of all such
hazal~rdous occupations shall be filed with the Code Authority within
90 days from the effective date. In any State an. emlployer shall be
dleemedl to have comlplied. w~ith this provision if he shall have on. file
a certhiicat-e or permit duly issuedl by the authnority, in such state,
emlpoweredt to issue emlployment or age c~ertific~ates wing that the
employee is of the required age.
'2. Emlployees shall hazve thte righ~t to organize and bargninl col-
lectively thirough1 :replresentatives of their own chbosing, an~d shall
be free from the inter~ferlenc, restranint, or coerc~ionl of employers of
labor or their1 nagetfs, in t~he, deligPnationl of such representatives or
in self-organization or in other conlcer~ted~ activities for the purpose
of collective ba rgani ni ng or other mutual aid or protection.
3. No employee and no one seeking emp~loymentn shall be requiri~ edl
as a colnd~itio.n of employment to join any company umion, or to re-
framn from jommig, orgamizmg or assistmg~ a labor orgum~za~tion of
hnis own choosing* andi
4. Employers shall comply with th~e max:1imumll hours of labor
minimum rates of pay, and other condcitionss of emrploymient approved
or pres'c~ribedl by the P~residen~lt.
5. W~ithzin each Sta~te this Code shall not supelclr-e any laws of
such State imlposing more stringentt requrirementes on emnployers1 regu-
latingr the age~ of emplloy~ees, w~ages, hours of w\orkl, or health, fire
or general wocrk~ing~ conditions than. under this Code.
6. Employers .shall not reclassify employ~ees or duties of oc~cu-l~~
tionts per~formeed by employees or engage in any other subterfuge so
as to defeat the purpolies of this Code, and in this connection em-
ployees engaged in twao or more capacities or positions having dlitfer-
enrt du~ties connected therewith, one or more of which being limited
by maximum hours, shall be classified undier the limited hour posl-
t ion which is limited to the fewer number of hours per weekr and
shrall not be p~ermitted to wcork a total Illnumber of hours in excess of
tllhos prTescl~ribe for suhll positions.~
7. Employers shall maknle reasonable pr~oisio~n for the safety anld
health of their employees at the place and during th~e hourr~s of their
8. An employer shall, to the best of his ability, so administer work
in his charge as to provide the maximum practical continuity of
employment for his personnel. Euch member of the Industryg shall
make, a study aend submit a plan for regularization and sta~bilization
of employ-ment in his plant and shall submit sulch plan to the Code
9. Each employers~ shall post in places accessible to employees full
copies of the laborl provisions of this Code.
ARTICLE: VI- DIN~IhISTRATION
To flr~therl ettcctulate the policies of th~e Act, a Code Authorityg
is hereby can titutedl to cooperated~ with the Admninistratorl in the
a dmI~ i n is~t enatlon of t-his Code.
1. Organization andl constitution of Code Aulthority.
(a) The Code Authori ty shall consist of 7 members of thle indlcust ry,
or sulch other numllber as may be approved from timle to tulne by the
Administrator, to be sele~cte~d as hereinafter set for~th. The Ad-
mninistrator may appoint not more than 3 nodditional mlemlbers writh-
out voc-te to r'l'iepreset the Admllinistrato r, without ,expese to the
(b) The mlemblers of the Code AL1uthority shall11 be seleitedl by the
industry at a meeting of the mnembersI. i of the industry to be called
by the Assc-cinltions within 20 days aftlr thre approval of this Code.
The melth~od of selection of the Code. Aulthorrity shall be fair and
equritablel~ and subject to the approval of' the Adiitrtr
(c) Re~latedl industries, which may from timle to time be included
u!ndler the provisions of ~this Code with the appr~oval of the A\dmlini-
strantorl, may~~ establishl therir own~ subordlinaate Code Aulthorit ies which
shall be independelct nt and self-.-sulpporting, and mayn\ deal, ulnder the
supervision of the masin Code Authority with the Admli nist rator
in respect to conditions or pr~oblems relating exzclusivecly to said
relatede~ industries and Irlny~ amend~l the appliention of the pr~ovisionls
of this Code to its mnembers.~ The subord'inalte Coder Autholrirty of
such retlalted ind-ustr~ies shall be entirely r~esponsibleT for the Admillnis-
trationl of this Code to suchn industry.
(dl) The At~ssociation shall: (1) Imnpose no inequitable !rretr~ictions
on memllbershipD and (2) .submlit to the Adin~istrator01 true! copies
of their articles of association, bylaws, regbulations,:11 and l anymend-
ments wvhen made thereto, togcther~l with suchn other inlformal~tion as
to membership, organization, and activities as thle Admlinirtr~ator
may deem ncessar~lly to etlectulate thet prpoll~lcs s of the Colde.
(e) In order~I that the Code Aurthlorit~y shllnl at all times be tr~uly
rrees'fentaltive of the inldustryS anld in other reespec;te comply writh
the prlovi;,ionsl of the Code, the Admrinistrto m~~~Iaypoieuh
hea ri ngs as he may deemII1 proper; andc thecreaftetr, I\if l ilclhe shanll findl
that the Code Aulthlority is not truly re~presentative orc due' nIl's ot in
other respclc'ts c.omplly wvith thte prove isions of thle Codle. may1~ requllire
an appropriated? miodl ificatln in the (romposiitinln andmti had~lln of selec-
tion. of the Colde Atuthoritly.
2. heCoe utortyshall havet the following: du~ties and p~owe~s
to the extent permiiitted yteCd:I h diitao hl
dectermine tha~t. any actionl of the Coder Aulthloritly, or any! agnc~y
thteieref, is unfair, uinjus~t. or contrar;lly to theC publlic' intereSt, theC Ad-
mlinistratlor' maly respjli'e thant. sch~ actionl be sus~pendedci for a period
of not to excce th~irt~y (lays, to affrdl` anl opportunity for inlveti-
gation of thle merlits~ of suichl nctioni andi furrther rconsidrac~tionI by
intken oInly uponl appro.'vall b~y the A~~hnini~stlnentor.
(a) W~ith a view\ to inlfo)rming~ th~e Admini.stra:t orI as to thle' obl~ser-
uLnrC of this Codel,;rl and usto wFhether thle inlllfin tr is takling~ aIppro'-
p~riate steps to, off'c~ctua~te thle policy of' thel Act, eachl memberl~'l of the
industry shall furnish duly certified reports in the form and sub-
stance and as required for the proper administration of this Code.
The Code Author~ity is hereby constituted as the agency for the col-
lect~ion and receipt of such re~or~ts and. the forwardling of such re-
ports to the Admlninistrator. All such reports shall be held in strict
confidence by the Code Authority, or any agency to which it may
delegate this duty except when they shall be reqluilred by the Adi-
minsl~trator or the Code Authocrity in connIIec~tion with a violation
of the provisions of this Code.
(b) The Code Authority may from time to time present to the
Administrantor recommendations, basel on. conditions in thne industry
as they may develop, which will tend~ to effec~tuate the operations of
the provisions of this Code.
(c) The Code Authority is a~lso set up to cooperate with the
Admininstrator in makling investigations as to the functioning and
observance of any provisions of this Code.
(d) M~ember~s of the industry shall be e~ntitled~ to participatee in and
share the! benefits of the activities of the Code Authority and to par-
ticipate in the selection of the members thereof by assenting to and
complying with the reqiuirnements of this Code and sustaining their
reasonable. share of the expenses of its adm~inistratltion. The reason-
able share of the expenses shall be d~eterminedl by the Code ~Author-
ity, subject to review by the Admninistratorl on the basis of volume
of business and/or such other fnetors1 as many be deemed equitable.
(e) To study, in c~oopecration with such r~ecogrnized~ organizations
as the Bureau of Standards, establishment of c~la si f;ien t ins~ and
st~anda rds of quality for products of the industry, with the viewm to
their recommlendatioln to and adoption by the industry.
3. In addition to informalltion required to be subi~mittedl to the
Codte Authority, all members of the ]Industry shall furnish such
sta~tistical information as the Achzninistrator mnay deem necessary for
the purposes recited in Sectionl 3 (a) of the Act to such Fiederal
und/or State agencies as he may de~iglnate; nor shall any~thing in
this Code relieve any person of any exsisting obligation to furnish
reports to anyS Governmenzt agencies.
ART~IOLE VII--LBnon BOARD
Al labor board to consist of two memclber~s selc~tedl by the Code
Authority, two members selected by the Labor Advisory Board of
the Nl~ational R~ecovery Administration and a Chair~man to be se-
lectedl byT the Administrator shall be formed to cocnsider and pass
upon any alleged violation, disputes, or no~nabselvan ce of the labor
provisions of the Code. All decisions shall, if unanimous, be final.
In the event that no agreement is reached, the matter shall be
referred to the appropriate Gover~nmental lgrency.
ARTICLE VII[I-TRADE PR~C'TICES~~;
The following practices constitute unfair methods of c~ompel~ttition
for members of the Industry and~ are prohibited:
1. Fialse Mark1ing or BIaranding.-The false markings or brandlringr
of any product of the industry which has the tendency to mislead or
deceive customers or prospective customers, whether as to grade,
quality, quinititly, substances, character, nature, origin, size, finish,
preparant ion, or otherwise.
2. 2Mia~lcitrepre~watatio o False or M~isl7eading Advlertis~inig.-The
maklling, enusingr, or knowinlgly permitting to be made or published,
any false, materiaLlly innecurate, or deceptive statement by way of
advertisements or oth~erwnise. having the tendency or capacit~y to mis-
lead or deceive .curstomners or prospective customers.
3. Comline reial BI1;riberl.--No mICllembe of the industry shall give,
permit to be grivetn, or offer to give anything of value for t~he purpose
of influcingii~ or rewvardcing the ncetionl of any emlployvee,, agent, or
repretsentative of another in relation to the business of the employer
of whl employee,3''t the principal of such. agent, or the represented
par Ity. These provisions shal~ll not be construed to prohibit free and
gencral distribution of articles commonly se oradetiin xcp
so far as such articles are actually ~s used for commercial~ b ~rbery
4. Intel.rferl nce wt'ithll CYontractuafi~lZ Relation~s.- Malilciouslyl inducing
or alttemiptinng to indluce the breach of an. existingr contract between
a comlrpetitor, l and his customer or sourIc~e of supply, or interference
with or obstruc~ting the~ performance of any such conltract.ual dulrties
5i. Secret Hebactes.-T'Ihe secret payment or allowance of r~ebates,
refunds, C'llnnai.-.sions,~; Creditsf or awanes1'1~1 discounts5, whethler in
the form of money or oth~erwise,, or the secret extenhionl to certain
purchallelser of spcia~ll services or privilege.--. nlot extrltlende to, all pur-
chaserc~ls on likre terms and conditions.
6. Giving of Pri~.~, P~roniums,, Gifts, or Free~c Goods.--The offer-
ing r gvin ofpriespreninusor ifts in connection wi'th the
sale of products. These prov,\isionsl shal o ecnsr opo
hibit free and general';1 d~istributioj n of articles c~omlmonly~ used for
7. Defamaitr;ion.--The clefaimationi of comlpetito rss by falsely imput-
i1ng to them dishonolcrable conduct~, jlinability to perl~formll contlracts,
questionable credit standing~, by oter false. rcpl~~resentatacns. or by
false (1is~paragementlIlt of the grle~tt or qua~lityv of their goods.
8. T'herals of ~L~lipationl.--The pub liching or rcir~culairizing' of
threats of suits for inlfl'r:ingementt o!t~fR pttsor trader marks'1 or of
anny otherli legal proceed(~~ingsi not inl good)( faith.
9. Espciionage of Competitof;frrs.-Securj in !conficdent ial i nformllatlonl
concern~ing the business of a competitor biy a false or mlisleadting
sflrltatemet or representa~(ll~tionl by a, false inqrllHso;ntinti- of one in
aultholrity, by b~riberly, or bg azny other ln~fair methlod..
10. Sales~. Br low Cosf. -Thle C'ode~ AuthorIity' shnlI formulate or
(n e~ to bec forml'l dellcd a uniformll amount~llling~ sysfIl~temwich shalll h~e
adapiltable~ to the ne~crounting~ pr~cdcture andl to the bus~iness o~f th~e
Indutry Suh pln sallspe ifyte factors w~hic'h shiall be in-
elmlellf in detef~rminingll the nds ofeahinihe f h Itty
I'pon appr""oval by! thec Athninistrator~l of suICh a sys~teinl of cost ac-
conirtingl for the Industryl'\, (complletef~ navli('e oncernling~ it shall1 be
d~istributed~ by th1e rcode~ Author()lity to all memberilcs o~f the- Indus~ltry.
Thec'(rlnfter' no memberl~'l of the Industl~ry Shall sell thc produNlc~ts of
tire Tll~llbl 0} Rt blit'll I(W100.cs Of1 11l))011 Fllr' 1 fPrillls :1114 c'00< thills Olf
the cost thereof to the seller, deter~m ined inl accordan lce with the afor~e-
said systeml of cost. account, except to meet competition, not insti-
gated dlirectly or indiirectly by t~he party detsir~ingr to melet such com-
petition, but to meet the price of a competitor whose price dones not
violate the Code.
11. Prb~lshedl Pr~ic~s.-Within ten (10) days aIfterl the approval
of! this Code each member of the Industry shall publish and file
with the Code Authority a price list for all prodlucts of thep Industry
sold or offered for sale by him, together with the discojunts and
transportation allowances, ifE any, allowedi therefrom, and fixed
terms of payment, which price lists shall fullyr and alc~curantely de-
scribe each product. Revisedl price lists, revised discounts, or termls
and conditions of sale, may ~be filed and p~ublishedl from time to time
thereafter by any member of the Industry; provided, however, that,
such~ revision shall be published and filed with the Code Authnority
ten days in, advance of the effective date thereof. Copiies of all. price
lists and r~evise price lists and~ disc~ounts, with notice of effective
date specified, shall be sent immeldiately by the Code Authiority to
all krnowrn mlemnbers of the Industr~y, who, thereupon, may fli
they so desire, r~evisio~ns of thcir price lists and/or dlis~ounlts, which
may become effective upoon th~e date when the r~evisedl price lists or
discounts, first filed, shall go into effect.
Nlo mem~ber of the Ilndustry shall sell or offer for sale, any produllct
of the ICndustry at prices lower than the prices noted in his price
list or on more favorable terms or colnditions of sanle than the- terms
or condcitio~ns of the sale previously publishedc and filed by such
mlemlber with th-e Code Authority in ne~col~rdance w7ithn the foregoing
proCVisionls anld in effect at the timle of such sale.
12. False Inv~oices.--The making of any false invoicet wmith the
intent, or wlith the effect of mlisleadilngr any interested, party.
13. Consaignnment.-Theh sale or oifferingp of any products of the
Industry on consiignmentn except by conditions' as prlescr~ibedf by the
14. AStandardE Termns of Cash Discount.--On and after the effective
date of the terms for cash grarnnted by manurfa~tuIr~er, excluding ex-
p~ort trade, shall not exceed:
Trade Sales Accounts--2%/ for cash in 10 dlays-Inet 60 days
B3ulkr Sales ~Accounts-1%~o for cash in 10 days--net 30 days
exce~t, that the discount to tradelt sales accounts may be extended to
the 10th any of the months follow~ing purchas.c~ It is pnrovideld howc-
ever, thalt exception maI~y be made in, sales to charitable and nontaxc-
pay~ing institution, schools, hospita~ls, andrel P;igous institutions.
15. Other Practic~es.--Nothing~ in this Code shall limit the effect of
anly adjudiention b~y the Courts or holding by the Federal Trade
Conunlissionl or complaint, finding, and order, that any practice or
mlethlod is unfair, provi\iding that such ad'judiention or hrolding is not
inlconsistenrt; with. any provision of' the Act or of this Code.
1. This Code and all the provisions hereo~f are exspresslyr made sub-
ject to the right of the Pre iden~lt, in accord~cance~t with the provtisiorns
of subsection (b) of Section 10 of the Act, from time to time, to
cancel or modify anly order, approval, license, rule, or regulation
issued under Title I of said Act and specifically, but without limita-
tion, to the right of the President to exncel or mnodify his approval
of this Code or any condritionls imllcposedl by him upon his approval
2. This Code, except as to provisions r~equiredl by thle Act, mlay be
modilfiedl on the basisn of enperience, or changee in c~ircumsta nces, such
mlodifiention to be basedl upon reconuiner indatin of the Code Author-
it~y to the President, and such notice and hearings as he shall specify,
and to become effective upon his appr~loval.
ARTICLE X-MhONOPOLIEs, ETC.
~No provisions of this Code shall be so applied as to permlit mlonop-
olies or monopolistic practices, or to elimrina~te, oppress, or dliscrimi-
nate again~st. small enlter~prises.
ARTICLE XI-PRICE INCREASES
Whereas the? policy of the Act to increase purchaying powerC1 will
be made impossible of c~ol.; llnsummao n if prices of goods andc services
increase as rapidly as ~wages, it is reco~gnizedl that price increases
should be dlelayed and that, when mad~e, the same should, so far as
reasonable, be Ilimlitedl to aIctunll ilcltncreass inl the seller's co~sts.
ARTICLES: XII--EFFECTIV.E A~TE
The p~rovisions of this Code shall become effective ten (10) days
after its approval by the President.
Apprloved'c Code No. 224.
Registry No. 625-02.
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