Code of fair competition for the lye industry as approved on February 19, 1934


Material Information

Code of fair competition for the lye industry as approved on February 19, 1934
Portion of title:
Lye industry
Physical Description:
p. 221-230 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Lye   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


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. 699-02."
General Note:
"Approved Code No. 300."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004943070
oclc - 63654826
System ID:

Full Text




I' I
For sale by thue Superintendent of D~ocumnets, Washington, D.O. Price 5 cents

Approved Code No. 300

Registry No. 699--02





ws so oua marE


This publicaltilon is for siale by the Supecrintendlent of Documents, Government
Printing Office, W~ashington, DO.., and by district ollices of the Bureau of
Ploreign and Domestic Commere.


Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customahouse.
Buffalo, N.Y.: Chamober of Commerce Building.
Charleston, 8.O.: Chamber of Commerce Building.
Chicago, Ill.: Suite 17063, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex~.: Chaumber of Commerce Building.
Dletroit, Mich.: Mil.1 First National Bank Huibtling~.
H~ouston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerc~e BuildinL
Jacksonville, Fla.: Chamber of Commer~ce Building.
Klansas City, M~o.: 10''S Baltimnore Avenue.
Los Angeles, Calif.: 1163 South Brondway.
Louisville, Ky.: -I0s Fe~deral Il~ilhling.
Memnphis, Tecnir.: 229 Federal IBuiblingr.
Mlinneapolis, Minn.: 218 F'ederal Buildintg.
New Orleans, La.: Roomt 225-Ac, Custombrouse.
New York, N.Y.: 734 Customhouse.
Nortolk, Va.: 406 East Plume Street.
Philadelrlhli:l. Pa.: 422 C'omnmercial Trust lubig
Pittsburgh, Pa.: Chamber of Commrerce Building.
]Portland, Oleg.: 215 New Post Office BuildingT.
St. Louis, Mo.: 506 Olive Street.
San Francisco. Calfif.: 310 Custombouse.
Seattle, W"ash.: 800I Federal~ I Office Tlundring.

Approved Code No. 300



AQs Approved on February 19, 1934


An application having been duly made pursuanlt to and in full
compliance with the provisions of Title I of the NEiational Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Com~petition for t~he Lye Industry, and hearings having been.
duly held thereon. and the annexed report on said Code, containing
findings with respect thereto, having been made and directed to the
NOWV-, TCHEREFOREI, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by xctv reso h rs
den, icluingExeutie OderNo.6543--A, dated Decem~ber 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find that said Code complies in all respects with the
pertinent provisions and will promote the policy and purposes of
said T'itle of said Aqct; and do hereby order that said Code of Fair
Competition be and it is hereby approved; provided, however, that
the ~provisions of Article VII, Section 1, insofar as they prescribe a
awaiting period be-tween the filing with the Cod~e Authority and the
effective date of revised price lists or revised ~terms anld conditions
of sale be and they are hereby stayed pending my further order
either within a period of 60 days from the effective date of this
Code or after the completion of a study of open price associations
nlow being conducted by the National Recovery Administration.
Hunc~ S. JoINSON,
Adm2inistrator for Ind~ustrial Recovery.
Approval recommended:
D3ivisiont Admin is r~ator.
February 19, 1934.
41485"-376-1 12---34 (221)


Tlhe White Hou~se.
Smr: This is a report on the Code of Fiair Competition for thbe Llye
Industry as revised after public hearings con~uc~ted in~ Washing~ton
on Decembler~ 7, 1933.
The Deputy Admninistrator in h~is final r~eptt eo adCd
having found as hlerein set forth and on theta basise of all th proee
ingns in this matter;
I find that:
(a) Said Code is well designed to promote thie policies anid
purposes of T'itle I of the National I[ndulstrial Recovery Act, includ-
ing r~emova:l of obstr~uctionls to the fre~e flow vof inlterstate andl foreign
comlmerce which tend to diminish the amount thereof and will pro-
vide for thle general welfare by promnotingr the organization of
industry for the purpose of cooperative actions among the trade
groups, by inducinlg and maintaining united action of labor and
managemenllllr t under Ilqccualte govcernmenltal satnctionls and supervision,
by e~limni n~t i ng unfair competitive pract ic~es by promotilf nrr the fulllest
possible utilization of the present productive c~apnc~ity of industries,.
by avoiding undue restrltic~tion of production exceptt as may be teml-
porarily required), by increasing the consumption of industrial and
agiulturalr products through increasing purcharingF p~ower, b
reuigand. relieving ulnemlol~~yment, by impr~lov'in, btandards of'
labor, and by otherw1\ise rehabilitating industry.
(b) Said Indlustry Illnormlly employs not more thanl 50).000( emn-
ploy~ees; and is not classified by me as a majorl indnetryl"?.
(c) The Code as approva\cll complies in all r~esp~erts with the per~ti-
nelt provisions of said Title of saidt Act. including without limlitation
Srubs~ctio n (a) of Section 3, Subse~ction (a) of SeCtrionr 7. and Sulb-
section (b) of Section 10 th~ereof; and thlat the app~licant association
is an industrial association truly~ :represenltati-e of' the aforesaid
Inlust r3; and that said asso(:iat ion Imposes no inlequitable rest rictions
on adirision to memberlship! therein.
(d) TChe Code is not designed to and will not permit monopolies
or monopolistic prInet ices.
(e) The Code is not desigrned to and wTill not elimlinate or oppress
small enter~prises and will no~t operate to diccriminaiit e against them.
(f) T'hose engageFrd in other steps of the ecollnoic process have
not beenl depr~ived of the right to be heard prior to approval of
said Code.
For these Ireasons, thle Codel has bee~n approved.
Respe'cctfull~y ,
HoonVG S. JoHNsoN.
A dminitrl blato r.
1FERHUArRY 19, 198-1~.



To effect the policies of Title I of the National Industrial ]Reco~very
Act, this Code is established as a Code of F'air Competition, for the
Lye I[ndustry-, and its provisions shall be the standards of fair com-
petition for such industry and shall be binding upon every member

SECTION 1. Lye lIndust~ry.--The term lye industry as used herein
includes the manufacturing, packringr, and/or canning of lye for sale
in packages which may be used for household purposes, and/or th~e
primary distribution thereof, and the manufacturing of cans, pack-
ages and/or shipping cases to be used for lye when produced by a
manufacturer, packer or canner of lye for his owFn use.
SEC. 2. Primza~ry, ~18tribution.-The term primary distribution "
as used herein means the distribution direct to the trade buyer or to
the ultimate consumer buyer by a manufacturer, packer, canner, or
his agent, when in fact this function in whole or in part, including,
but without limitations, the determination of marketing or selling
policy, has been delegated to said agent by said manufacturer, patcker,
or canner.
SEc. 3. L~ye.--The term lye as used herein means any product
in a package for household use which is labeled Lye, or sold with the
intention or possibility of beings so labeled by, anyone.
SEO. 4. Employee.--The term, employee as used herein includes
anyone engaged in the industry in any capacity2 excepting brokers,
receiving compensation for his services, irrespective of the nature or
method of payment of such compensation.
SEc. 5. Employer.-Tlhe term employer as used herein includes
anyone by whom any such employee is compensated or employed.
SEC. 6. M~l??ber of t~he Industry.--The term member of the indus-
try as used herein includes anyone engaged in the industry as above
defined, either as an employer or on his own behalf.
SEC. 7. Trade Buyer.;-The term '"trade buyer as used herein
means any commercial buyer as distinguished from an ultimate con-
sumer buyer.
SEc. 8. Broker.-The term broker as used herein means any
sales representative who performs the services of negotiating the sale
of lye for anld on account of the seller as principal and whose
compensation is a commission or brokerage paid byq the seller.
SEC. 9. Open Paice.-The term open price 'as used herein
includes a price list which is published for the equal information of
all trade buyers azlike located in th~e same competitive market, and
which states all the seller's prevailing terms of sale.


SEC. 10. Competr;itile Macrketo.-Tlhie term "competitive! markett" as
ulsed- herein means~11 a. geographical area, the boulntar~ies of which
are fixedl by any mlemlberl of the indrustry for himiiself.
SEC. 11. Piredithhtr rl c an L#Ml Administrator.-T he terms "Pres-
ident "', "L Act "1, anld) Admninistrator ats us~ed herein shall mean
r~espectively the Pr~esident of the U~nite~d States~. Title I of the.
Nlt~ionlal Industr~ial Recovery Act, and the Admini tr~ator for Indus-
trial Recove-ry.
ARLTICILE 111-1100Rs
RE(-rIoS 1. N~uo not-ountllling, clerical, office, store, shripping, or inside
sales employees ~hall be permnittedl to w~ork in e~x.ess of forty) (40)
hours per wjeek averagedl over a two (2) months? per~iod; nor more
than forty-eight (48) hours mn anly (.alendar;11 week.
SEc. 2. No emplloyee on automotive, or horset-drawn plassenger,
express, de~liver~y, or freight sevcl-~e shall be pelrmittedl to wor~k in
escess~ of forty-four (44) hoursl~i per wTeek aveI,rcrage over a two (2)
months" periodX, or mn ecsl < of forty-eigh~t (48) ~ou~rs in any cale~nartr

Srlc. 3. N~o engineers,~ firemlan, water tender, o~iler, or I.leanler shall
be perm"itted~ to work. in excess of forty-eight (48) hours inr anly
cal~llenan weekr.
Seec. 4. No wa~tchmalln shall be permitted to work~l in excess~ of
fifty-six (56) hours in any enlenalnl weekl.
Sw. 5 No oher eploye excet as pried in ISecrtionl 6 belw,
shall be permittedc to w~ork in excess of ot 4)husprwe
averaged~r l over a six (4i) months' period nor~i morl~e thanr forty-fiveti
(45i) hours in anly en~~llenar wTeeIk.
SEc. 6. Trchnlical or` professoinll8 emp~loyvees, suchl as c'hemnists,
lawyeS''', doctors, and nurses, engaged(` in. their technical or pro~fe~-
sional enpnerity, who receive thirty-tive dollars ($35,.00) or lor~e per
week, and emllployees mna ma~naigeriail, supervisory\ or excutctiv-e
esnI''ity who receive thirty-five do~-llars~ ($:3..00) or more per week,
emloyer,tes on emlergncy maintenance or repa,;ir work mnvolving
blcrl ke owpn and p~rtc~tl ion of life~ and property, and1( oult ide1~ salesmenll
are exceptedl from the prov,\isions of Se~ctionl 5 above\.(
SoC. 7., If any emplloyvee, exc~ept those r~eferrec~el to in Sec~tion 1,
Section 2, Sec~tion 3, Section 4, and Secrtion (i. works inl ex~ess ofj
eighlt (8) hours-; in any tw~enty-fou~r (i>4) hour11 p~eriod1 or inl excess of
forty (40) h~Llurs in any calendar weekl. he shall be pa:id~f, o~r sch
excess4 hours at not less than o~ne and one third (11/S) timesc his
r'egnrrll" hourlly rate of pay.
Mr. 8 No mploee (except wantchlmen) sha~ll be prmidt
wrmo emp than sx() I1lays in anly seven (7") day pel'i~1rniod.l t
SE(. 9. Ilf any! unploy~lee wFForkrs for mor~le than onle emloyel! r, nol
such emplollyer or employers shall k~nowingly petrmit sulch e~mplore e
to wor~k for a total nulmber~I of houlrs~ which is in excess o~f thet maxsi-
naumin hours herinci preSlicribe, and all employersi in the indu~lStry
shall exer~cisel duelt dilige~c~e to clr~ry oult the pul-plostes of thtis setin.
SEc'. 1,0. NIo employee r sharll r~ec~lassi fy employees or duties of occu-
pa"tions petrformedc~t or engngeIc in any olther sublterfug~e for the purposes
of lefeatinlg the purp'lose or p'ov'isionls of the Act. or of this Code.


SECTION 1. No emplroyee. shall be panid at a rate of less than, fouxr-
teen dollars ($14.00) per week; or thirty-five cents; 35G) an hour
ex~cept as follows: Lear~ners or apprentices not exlrceeinlg five (5)
percent of the total number of emplloy~ees inz any estnblishmnent em-
ploying more than forty (40) employees, during the first sixty (60)
dlays of their employment, shall be paid not less than..eightyr (80)
percent of the minimum rates above prescribed. Any establishment
employing less than forty (40) emplloye~es, myay have not more th~an
two (2) learners or apprentices recceiving not less than eight y (80)
percent of the minimum rates.~
SEC. 2. This article establishes a minimum rate of pay' which
shall apply irrespective of whether an, emlol~ryee is actually compen-
satedl on a time-rate, piecework~, or otherl basis.
SCEC. 3. ERSaed upon cha~nges in. minimllum pay as cinted~ in the fore-
going Sectionls of this Article, each e~mployerl shall make fair atnd
equlitable, readjustments of all pay schedulles above the minimum
.and shall report such readljustmenit s to the C'ode Aulthcr~ityT on or
before February 15, 1934.
SEc. 4. There shEall be no evusion of this Codte by anly member of
the industry byr reclassifientionl of general types of ocenprllntiorns
existing on June 15, 1933.
SECTION 1. No piers~on ulnder sixteen (16) years of age shall be em-
ployed in the industry, nor anyone under eighlteen (18) years of
age, in the case of fac~tory workers. In any state an emlployer~ shalll
be deemedc to have complied with this p~rovis~ion, if he shall have on
file a c~ertific~ate duly issuedl by an unrthor~ity empnvered~l~~t to Issue
emlploy~ment certificates, showing that the employee is of the requlilted
SEc. 2. Emnployu\ees shall have thne right to organize and~ bur~lgain
collectively through representatives of their own chotrsing,. and~ shall
be free from thie inter~fer~ence, restraint, or coercion of employers of
labor or thei r a gent s in the designation, of such I'~~'relt l pre etves or
in self olrganizationl or in other concerted netivities; for the pu~rpose
of collective bargaining or other muullflR aid or prc-t~ct~ion.
SEC. 3. No employee and no one seeking empl~loymenclt shall be re-
quired as a condition of employment to join any company umion or
to refrain from joinmng, orgamizmg, or assisting~ a labor organ: Iizatio-n
of his own choosing.
SEc. 4. Employer shalll comply with the maximuml hlour of labor,
miiinimum rates of pay, and other conditions of emloyml~v nent., ap-
proved or prescribed~ by the President.
SEC. 5. Within each state this code shall not sulpersede any Inlws
of sulch state imposing more stringent r~equirementsnt or emplloyerls
regulatilgr the age of employees, wnges, hours of work, or health,
fi~e, or general working conditions than under this code.
SIEC. 6. Eachl employer shall make reasocnable procvision for the
safety and health of hnis employees at the place and during the hours
of their employmnent, and shall list with the GCode Authority all
occulpations of a danger~ous nature.


SEc. 7. Each employer shanll post in conspicuous places necessible
to employees full copies of Article III, IVr, and V of this code.
To further effect the policies of the Act, a Code Aulthority is hereby
constituted to administer this Code.
SECTION 1. TChe Code Authority for the Lye In~dustry shall1 consist
of five (5) mlemlbers elected by the industry in the following manner,
and of such additional mlemb~ers without vote as thre Adnunistrator,
in his discretion, may appoint to represent such groups or interests or
such. governmental agencies as he may designate.
(a) Nominations anrd elections of the elective memberss of the Code
Authority, shall take place under the auspices of the Sectretary of the
Lye M\lanufacturers' Association and shall be conducted in the follow-
mng manner:
Each member of the industry who assents to and complies with the
requirements of this Code and sustains his reasonable share of the
expenses of its adminis-tration shall be entitled, to one (1) vote and
shall be termed hereinafter as an elector.
(1) Each elector may nominate a sufficient numllber of individuals
to fill whatever vacancy or vacancies exrist.
Ten (10) days after the Secretary has notified electors that a
vacancy exists and that nominations are in order, he shall tally al
nominations received. Those individuals receiving the greatest numl-
ber of nomrinations shall be thie nominees, and there shall bet tice: as
many nominees as there are vacancies to be filled.
(2) Within two (2) days after the tallying of nominations the? See-
retary shall mail ballots to each elector which ballot shall list th
nomtinees nominated. Eachn elector may vote for a suffcient number
of nominees on. the ballot received to fill existing vacancies.
Ten (10) days after mailing of ballots the Secretary shall tally all
ballots received from elector~s. The nominee or nominnees, r~espec-
tively, receivring the hzighnest numrlber of votes shall be elect~ed.
Within twro (2) days after the tallying of votes the Secretary shall
mail written notification to all elector~s setting forth the result of the
(3) The Secretary shall call for nomiinationis within three (3)
days after the approval of the Code.
SEc. 2. The? Code Aulthorityv shall have the follow~ingr further
powetrsr and duties to the extent permittedl by the A~ct:
(a) To obtainr from members of the indjustr~y sulch information
and reports as are required for the adiiniistratioo n of the Code anid
to provide for submissions by mlembler~s of such inlformllation and re-
por~ts as the Admlinistratorol may deceml nelrcesslry for the purposes
recited in Section 3 (a) of thle Act, which- information and reports
shall be s~ubmlittedc by memblllers to such admlninistranti ve and/or govern-
mecnt agrenc~ies as the Admlin istratorcl may dlesignate; provided thiat
nothing in this Codec shlall re~lieve any memnber of t~he Indulstry of any
exist~ing obligantions to furnish replor~ts to any g3rovernmentI~l agency.
No inId i vidual. reports shanll be disclosedl to any other memnber of the
indutlstry$ or anyl other party ecpclt to suchl g~overlnmentata l aIgenies
as many be dlire tedi by thef Adiittr


W~hen required, reports containing such information shall -be
notarized, the Code Aulthor~it~y shall designate the agent or agents to
whoml reports shall be sulbmitted. Such agent or nagenlts shall nlot, be
a member or members of the industry. `When reports: are of a con-
fidential nature, they shall be kept confidential by the agent or agents
designated and by any designated government agencies. The infor-
mationn so collected if publishedi shall be dissemninated without indi-
vidual identification and only in combination writh other information
of the same type.
(b) If the Administrator shall determline that aIny action of a code
authority or any agency thereof may be unfair or ulnjus~t or contrary
to the public interest, the A administrator may requli re that such action
be suspended to afford an opportunity for investigation of the meprits
of such action and further consideration by such codle authority or
agency pending final action, which shall not be e~ffec~tedl unless the
Administrator approves or unless he shall fail to dliisapprove after
30 days' notice to him of intention to proceed with. such~ action. in its
or~iginal or mnodifiedl formn.
(c) A~n y trade or industrial associationl directly or indirectly
participating in the selection or activities of the Codle Aulthority
shall: (1) Impose no inequitable restrictions on memnbersh;ip, and
(2) submit to the Administrator true copies of its articles of associ-
ation, by-laws, reguatio~ns and any amendments when made~l th~ereto,,
togethler with suc other information as to membership, organiza-
tion, and activities as the -Administrator mnay deem~ n-ecessar~y to
effec~t.uate the purposes of the Act.
(1) In ord-er thait the Code Authority shall art all times be truly
representative of the industry and in other respc~ts com~nply with
the provisions of the Act, the Administrator mn y provide such
hearings as lie mnay deemn proper, and thereafter, if he shall find that
thie Code .Aulthorit~y is nlot truly representative or does not in other
respects comply with the provisions of the Act, may require .an
appi-opriate modification in the methlod,of selection of the Code
(2) M~enibers of the industry shall be entitled to participate in
anid share the benefits of the activities of the Clode Authority b
assenting to and comlplyinga with the r~equirem~enlts of this code and
sustaining their reasonable share o~f the expenses of its adml~inisitr~a-
t~ion. The reasonable share of the expenses of the administra tionn
shall be determined by the Code Authority, subject to review by the
Administrator, on the basis of volume of business and/or such other
factors as may be deemed equitable to be taken into considera:tion.l
SECTION 1. Each member of the industry shall file with the Code
Authority not later than the effective date of this Code, price lists for
the specified competitive markets w~ithlin which such price lists are
effective. Thereafter a member of the industry shall file with the
Code Authority any changes in such price lists, or in the competitive
markets within which they are effective, which changes shall become
effective ten i(10) days after the date of their filing. The Code Au-


thority shall m~ail to each~ member of the industry a copy of all price
lists and changes whlen they are filed."
SEc. 2. A member of the industry shall be permitted to manufazc-
ture, pack; or can lye in cans, labels and cases which he may have on.
hand, and which do not conform to the provisions of this Code, pro-
vided the same were purchased not later than December 8, 1933, and
provided further, that before doing so and not later than fifteen (]15)
day~s after the approval of this Code byy the President the member
of the industry shall make app~lientio~n for this privilege to thle Code
Authority, and furnish th~erewrithl a statement duly sworn and nota-
rized with refe~renee to the quantities of such, cans, cases or labels on
hand and the purchase date thereof. A mlembler o~f the industry wh]o
files such an application shall be required to report to the Clode Au-
thority when all sulch supplies mentioned in the application have been
used, or upon demand by the Code Ailuthority any time prior thereto
shall be required to report thie balance of such supplies on hand.
This right to use such supplies as are covered in the application shaRl
cease six (6) months after the date of approval of this Code.
SEC. 3. The following practices constitute unfair methods of
competition for members of the industry and are prohibited:
(a) False M~arkFing or BI~randing.--The false marking or branding
of the product of this indcustr~y.
(b) M1isreprescs~ntat fion.1 or 'False or M~isleadrin g A dvertisinlg.-T~he
making* or causningr or kinowingrlyJ prmitting to be made or published
any false, materially inaccurate or d~eept~ive statement byT wnayo
advertisement or otherwise, whether concerning the product of theo
industry, or the product, credit terms, policies, or services of ainy
member of the industry or otherwise having the tendency or capacity
to mislead or deceive customers or prospective customers.
(c) Commrercial Br~iber~.-No member of the industry shall give,
permit to be given, or directly offer to give, anything of value for
the purpose of influencingr or rewarding the notion of any employee,
agent or representative of another in relation to the business of the
employee, the principal of such agent or the represented party, with-
out the knowledge of such employer, principal or party. Commercial
bribery provisions shall not be constructed to prohibit free and general
distribution of articles commonly used, for advertising except so far
as suchn articles are actually used for commercial bribery as
hereinabove defined.
(d) Aldvert~ising Allowaraces.-Offering or giving advertising al-
lowances to a traded buyer or his agents, employees, or representatives.
(e) Price Con cessionsr.----Giving or offering to gi ve anyT dlirect or
indirect price conces-;ion to a trade buyer. The term "' direct or indi-
rect price concession means anly variation from the manufacturer's
open price, whlether byI mleans of a rebate, allowvance, payment, free
deal, gift, or by anly other mecans whatsoever.
(f) Consrignine~ n.t.-Sh ippIing upon consignmen t to a trade buyer.
()Pr~oduct Staldards.--(1) The sale of or offer to sell lye, which
has less than a minimulm content of seventy-four (74) percent of
sodium. hyFdroxide.
5 See paragraph 2 of order upp~roving this Code.


(2) :The sale of or offer to sell lye which is Inlkcled in eces~rs of a
m~aximoum net weight of thirteen (1_3) ounces per can.
(8) The sale of or offer to sell a case of ly~e containing other than
twfenty-four (24) cans or forty-eight (48) cans.
(h) Tran~spoi(rtaio n. Stanrldards.--() The sale of or o-ffier to sell
lye at prices which do not include freight charges to detination
except in the case of Pshipments to the U~nited States Governmelnt,
railroads, and steamship ~ines.
(2) Miakinga allowances for transportation charges upon a ship-
Inent by a trade buyer to his customer, or upon a shipment from a
trade buyer's stock to any branch thereof.
(3) T'he storage of lye within the warehouse or other pl~remises of
a trade buyer.
(i) Quantity Pricre.-N~o member of the industry shall offer or
mae a quantity price imnless it is based upon and reasonably meas-
ured byr a substantial differencee in thne qruantity sold and dlelivererd.
(j) C7ash Disc~ounrt Terms.--Terms other than two (2) percent dis-
count for cash in ten. (10) days, net payment in thirty (30) days
from date of shipmlent, or one (1) percent discount for cash in
fifteen (15) days from date of shipment, exceptt as follows:
(1) Termas upon shipmnenlts to or from ]Pacific Coast ports shall
date fr~om the arrival at or shipment fr~oml the Pacific Coa-t port.
(k) Brok~el~ra.--(1) The payment of a commission or brokerage
to a brokler in excess of fivse (5) percent of the invoice price.
(2) The paynenit of a commission or broke~ragre to a bl~roker if the
samre is to be used in any manner which would give anly trade buyer
a price advantage over any other trade buyer or any ultimate con-
sumner buyer, a price advantage over any other ultimate consumer
(3) T1he paymeltnt of a commission or brokerage to any trade
(L)f Open Prices.--The sale or offer to sell lye otherwise th~fan uplon
the basis of open prices, which shall be the effective p?ries on file
with the Code Authority, except when the sale or offer to sell is for
the purpose of meeting a competitor's price.
SECTION 1. This Code and all the provisions thereof are expressly
made subject to .the right of the Pr~esident, in accorda~nce with the
provisions of Sub-section (b) of Section ten (10) of the National
Industrial Recovery Act, from time to time to cancel or modify any
ordr, ppova, lceserul, r rguatin isud uderTile ne(1)
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
conldit ions imposed by him upon his approval thereof.
SEC. 2. This Code, except as to provisions required by the Act, m~ay
be modified in whole or part upon the recommendation of the Code
Authority, such modification to be based upon application to the
Administrators and such notice and hearing as he shall specify-, and
to become effective on approval of the Admlinistr~ator.


230 3 1262 08850 4963


`No provision of this Code shall be so applied as to permit mnonop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.


This Code, except as to the articles relating to hours, wages, and
general labor provisions, shall not apply to export business.

This Code shall become effective on the fiftteenth (15) day after its
Approved Code No. 300.
Registry No. 609-02.