Code of fair competition for the porcelain breakfast furniture assembling industry as approved on January 30, 1934


Material Information

Code of fair competition for the porcelain breakfast furniture assembling industry as approved on January 30, 1934
Portion of title:
Porcelain breakfast furniture assembling industry
Physical Description:
p. 587-600 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Furniture making -- United States   ( lcsh )
Furniture finishing -- United States   ( lcsh )
Porcelain   ( 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. 312-04."
General Note:
"Approved Code No. 239."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004943017
oclc - 63654497
System ID:

Full Text





I 'I
For sale by the Superintendent of Documents, Washington, D. C. - Price 5 cenlts

Approved Code No. 239

Registry No. 312--04






Thi publication is for sale by the Superintendent of Documents, Government
"pentiang Off ti omeeeOice, Washbington, D.O., and by district ofilees of the Bureau of


ABtlanta, Ga.: 504 Post Offic~e Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mdass.: 1801 Culstomhouse.
Buffalo, N.YT.: Chamber of C'ommerce Building.
Charleston, S.O.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 20O1 North Wells Street.
Cleveland, Ohio: Chamber of Commeree.
Dallas, Tex.: Chamber of Commnerce Building.
Deitrrcit. AIlc-h.: 801 First Natioinal Banlk Building.
H~ouston, Tex.: Chamber of Comerce Building.
Indianaprolis, Ind.: Chamnber of Commer~ce Building.
Jackrsouville, Flla.: Chamber of Comerce Building.
K~ansas City, Mo.: 1028 Blaltimnore Arvenue.
Los A8ngeles, Calif.: 1168 Southl Broadway.
Louisville, Ky.: 408 Federal Building.
Memp~his, Tenn. : 22 Federal Build~ing.
MZinneapolis, Mlinn.: 213 Federal Building.
New Orleans. La.: Room 225-A, Custombonse.
New York, N.Y.: 73 Custombonse.
Norfolkr, VTa.: 400 East Plume Street.
Philadelphl~lia, Pa.: -122 Commercial Trust Buiilding.
Pittsburgh, Pa.: Chamber of Commerce Building.
Po~rthmi,. Oreg.: 215 ~lne Post~ Office~ Buildling.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombous.
Scnttle. Wa~sh.: 8010 Fede~ral1 Offic~e Building.

Approved Code No. 239



As Approved on January 30, 1934



An application, having been dulyT made pursuant to and in full
compliance with the provisions of title I: of the National Industrial
Recov~ery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Porcelain Breakfast Furniture Assembling
Industry, and hearings having been duly held thereon and the an-
nexed report on said Code, containing findings with respect thereto,
having been made and directed to the President:i
N;OW~, TH-EREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Ind~ustrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Exrecutive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate boy reference said an-
nexedl report and do find that said Code complies in all respects with
the pertinent provisions and will promote the policy and purposes of
said Title of said Act; and do hereby order that said Code of Fair
Competition be and it is hereby approved; provided, however, that
the provisions of article 7-B, section 11, insofar as they prescribe a
waiting period between the filingS with the Code Authority and the
36712 -313-151--34 (587)


effective date of r~evisedl price lists or revised terms and conditions
of sale be andl they are hereby stayedl pending m-y further Order
either within a, period of sixnty days fr~oml the effective date of this
Code or af-ter thle completion of a study of openr prIicr a~ssociations
now being conduic~tedl by thie irNational Rcov-ery$ Adm~iinistrIation.

AQpproval re'cconsll'llended:
D~~~ivision Admrlinist rator.
W \~sa IKo-rx,N ]D.C.,
Jan, nr yr 30, 12934.

The White Hi~ouse.
SmR: This is a. report on the Code of Fair Competition for the
Porcelain Breakfast Furniture Atssembling Industry, the public
hearing having been held in Washington, on N~ovember 16, 1933, in
necordance with the provisions of the National I~ndluitrial RecovTery

A basic forty (40) hour week is established by this Code. A tol-
erance o~f five (5) hours a week averaged over each eight (8) weeks'
period is allowed for office employees, while an eight (8 ) hour toler-
ance is permitted for factory employees, but all factory overtime
in excess of eight (8) hours a day must be paid for at not less than
one and one half (11/2) timeS the regular hourly r~ate. No employee
is permitted to work more than six (6) days in any sevetn (7) day
This Code establishes a minimum rate of'pay of forty (40) cents
pe~r hour in the North and thirty-six (36) cents in thze South, but
practically the entire production of this Industry is in the ~North.
Apprentices not to exceed five~ (5) percent of the total number of
factory workers may be paid eighty (80) percent of thle minimum
rate for a period not to exceed four (4) months.

No person under sixteen (16) years of age shall be employed in
the Industry nor anyone under eighteen (18) years of age at occu-
pations or operations hazardous in nature or detrimental to health.

T~he report prepared by the Division of Economic Researchn and
Planning, based upon data obtained from the I[ndustryT by questionr-
naires, presents the following facts:
(a) Since 1928 the volume of sales of Porcelain Breakifast Furni-
ture declined approximately seventy-two (72) percent.
(b) Factory employment declined nearly thirty (30) percent from
June 1929, to June 1933.
(c) In June 1929, the average hours worked by factory employees
were 53.7 per weeki.
(d) Average weekly wages of factory wage earners declined from
$21.47 in 1929 to $14.74 for the first quarter of 1933.
(e) Under this Code, factory employment will approach the 1929
level. An increase of approximately twenty (20) percent occurred
from June to October 1933, under the Pre~sident's Reemployment
Agreement, and a further increase is assured when all the members
of this Industry become bound by this Code.


(f) The Code prov,\i--ic n limlitinge the work-w~eeke to an average of
forty 40 hours wTill effect a reducction of twenty (20) percent or
more frmthe av~erage'~ houlrs~ worked,~i~ prior to the Pr'Esident') s Re-
emuploymrent Ag~reemellnt.
(g) Averge weekily~3 wages of fa1.tory3 emlolyees i~c~reased a~p-
proximately :fftceenI (15) per cent in ther third quarter of 1933 over
the first ql~uarter. under the Presiden~rt.'s Reemp ~ o loymnt Agreement,4
and a, further increat~se mlay be texpectedl under this Cod~e. The hourly
wagoc rautes paid to sevcnty-fivee (75) per cent of thne workers in this
Industry\ will b~e inlcreased by the Code.
(h) 'i'he total payroll of this Industry wals inlCreaseder thlirVty-ive
(3\5) per''cet. by the Presid-ent's Reemlplo ymentC1 Ag~ireenw't.
Thle A~ss-istanit D~eputy Admninistr~ator in his final r~ep~ort to mne o
said Code having found as herein se forth andi on thle basis of all
th~e proceedings in this matter:
I find that:
(a) Said Code is w~ell designed to pr~omote the policies anrd pur-
poses of Title I of the National Inu~str~ial Recover~y Act, including
I~reovill of obstr~uctionls to the free flow of interstate anld foreign
commerce~c~ which tend to diminish the amlounlt thereof and will pro-
vide for the general welfare by promoting th~e organization of indus-
tryT forl the purpose of cooperativetz action amlongb the trade groups,
by nduingandmaitaiingunited action of labor a7nd management
underllCil r adeuat goverrutnentll sanctions andl siuperv\ision, by elimninat-
ing unfair competitive practices, by p'romlotingF the fullest possible
u~t iliza tion of the present produ ct ive capac ity of ind ustries, by avid-
mng undue~lc restriction o~f pr~ouclltion~ (except as may be temlporarily
r~equir~ed), by increasingly~ the consupioil~in of indu~tr~ial and agricul
t~ural products through increasning pur~chaingi powrci, by reducing
andl relievtingr I ulne ~llmployet, byr improvinglc standalllrds of labor, and
by othlerwnise relHabilitatingll indu'tr'y.
(b) Said TIndustry'3 normnll:II ly emloy.- Irmt mlOre tha~n ITn.000~r em-
pl'vr (!cr ; and is not ansd~~fied by\ me as a mlajorinutry. hI) t
(c) Th od s proved compillies in ll repcswthtepri
nent p~rovisionrs of saidl Title of mnit .\ct, includMingF without Ininita-
t ion Sulbsect lon (a) of Sec~t in 3, Subsection (a) of Sect ion 7, and
Sfubsecctionl (b) of Secctionl 10 thereof; and thant the ap~plic~ant associa-
~tion is an indusiitrial a~ssaintion truly repre en~~lt;tative of thle aforesaid
TIndustry~; and that said usedacitioni imposes~r no( inequitable restric-
f lOns rn illllinimioll tO IrMP~iber~lji n tI~rieini.
(d1) The Code i-, not des~:ll'ind toI and will nolt permllit monopo~llllies
or mrlonopoI~t:listfi(1~rct p i(ers.

small entellrprises and will not~ o~pera;te to discrimninate against them.

beenl depr,1ivr ld of tinr r'ighlt to be' heard p~rior to app'roval of said Code.
For theeraos hreoe aeaprvdti oe
TRlespec t fulllyg,
)irvan, S. J~~xonsso





To effectuate the policies of Title I of the National Indlustr~ia
Recovery3 Act, the following provisions are establishedl as a Code o~f
Fair Competition by the Prcelain Breakfast Furniture Assembling
Industry, and upon approval by the President, shall be the standard
of fair c~ornpet.ition for the Porcelain Breakfast Furniture Asseiln-
bling Industryr and shall be binding upon every member thereof.

SECTION j1. PO3'C:7ak-l Bre881/888 Furniture Asseenbling Industry.--
The term Porcelain Breakfast Furniture Assembling Indu;stry "
as defined herein, means the assembling and finishing of wholly
manufactured wood parts consisting of turned legs, str~etchers,~s table
bases and their parts, porcelain enamelled tops, and chairs. These
parts are assembled, finished, and processed to complete a porcelain
breakfast furniture set.
SEC. 2. Employees.--The term "L employee as used herein includes
anyone, except a member of the- industry, engaged in the Porcelain
Breakfast Fiurniture Assembling Industry in anry capacity receiving
compensation for his services, irrespective of the nature or method of
payment of such compensation.
SEc. 3. Employer,--The term~ emlplolyer as used herein includes
nyne by whom an y such employee is compensated or employed.
SEC. 4. &61726878 Of the Inzdustry.--The term member of the
Industry includes anyone engaged in the Porcelain Breakfast
Furniture Assembling Industry as abov\e defined, either as an em-
ployer or on his own behalf.
SEc. 5. President, A~ct, anld Adiministrator.-The terms P~resi-
dent ", LAct ", and "Administrator as used hereinl shall mean,
respectively, the lPresident of the United States, Title I of the
National Industrial Reco~very Alct, and the Administrator for I~ndus-
trial Recovery.
SEC. 6. Pzoll-back~s.--The term pull-backs "' as used herein includes
such. furniture manufactured, byb members as is returned by the
consumer to the retailer after being in use.
SEc. 7. Co0de Authority.-The term Code Authority as used.
herein is the Agency hereinafter set up to administer the pr~ovisions
of this Code, with the approval of the Administrator.


SEC. s. A-1.RA~'Octlf idl.--The term "'Asso~ciation ", as used herein,
mleanl National Breakfast Fulrniture Malnulfac~t urers Association,
Inc., a trade association.
SEC. 9. Execul;tfirle s~creta;~r y.--The terml '" Extcu~t ivre Secretary "', as
used'r her~einl, means the Excuc~tive SecretarY of the Association.
SEc. 10. E~fectic'! dtiT7r.--The~ tejrm effective dlate as used herein
mieans the secondl Monday after this Code'l shall have been approved
by thle ]Pre irent.

SEiC:TION 1. NO oflcef emnployees~ shall be permlitted to w~ork in excess
of anl average of forty (40) hours peri w~eek during each eight (8)
weeksl~' pe~iold. but not mlor~e than fot-five (45) hours in any one

SEc. 2. No other w~orker sha~ll be p~erm"itted to wor in excess ~of
forty (40) hours in any one week or eight, (8) hours in any twenty-
four (24) hlour per~iod, except as hereinlafterl othlerwise provided.
SEc. 3. Employees englaged in the capacity of designers, executives,
or siuperv\i~surel who recceive $35.00 per week or more, and outside sales-
m1en1, are ecep~clted~ froml the provisions of Sections 1. and 2 of this
SEC. 4. AQ tolerance of 10%o in the hours specified above shall ~be
perm~rittedl for firemlenl, engmleers~, emerge.., ncmainteniance anrd repair
crewa7s, and shipping and delivery department crews.
SIEc. 5. Trhe hours of work2 for night watchmen and night firemen
shall not e~xc~eed a total of eighty-five (85) hours in, each two weeks
period, or an aver~age of forty.~-t wo anrd one half (421,) hours per
wneek~ in elc~h trc we weeks period.
SEc. 6. Truck dlriver~s oper~atinlg on, trips nlormnally requiring mor
than eight (8) hours, except in cases of unavoidabl delayv due to
breakd;own or neccident, shall be subject to hours of labor of a cod-e
herea fterl to- be adopnted~ for the truclikino r industry.
SIE(`. 7. The ma~ximnum hours pr~escr~i dc in Section 2 of this Art~icle
shall not apply in cases of seasonal or peak o-perations, provided,
however, tha~t, no empllloyee ellngaed~ inl such operations shall be per-
mlit~ted to work in ex~ess of forty-eight (48) houlrs in, any one wee,
nlor in, exrcess of forty (40) hourlls p~er wee~k a~ver~aged over a-n eight
()c~ollecult ive weetk perio~d.
SEC. 8. All over~l-timne w\orkl in excetss oif eigh Iot(8 s ha () hours per day
or for~t y (40) hourr p~er' week shall be paid fra o esta n
andc one half (~1%) times thne regularly hourlyl rate.
SLEC. 9. NO employees hall be perm ittedI to wnor~k mloret than sixg
(6i) day's in ainy seven (7) dlay per!'iod.
Aran:ll~~ IV-TVAGEN

Seenu'LI( S 1. N~o ('mployees~1C .shal~ll h~e paid less than thle rate of 40#~
i'er hour', exceptl' us proid\ited in Srction 3 of this Artile, and except
rn the States ofVirginiia, Nor~th arorcliln. LSoulth Car~oina, Tennessee,
K~enituicky, Ge~org~ia, Floriain. Alahamlla, Mlississippi, Louiisiana, Ar-
kunlsus, and TexasnH w~here no empllloyee shall be paid at less than
thec ra;te of :H('q' per hour. TIhe mljinimuml rates her'ein specified are


guaranteed whether comp~ensation is based on time, piecework, or
SnoE~. 2. Hourly waTge rates for employeesc receliving~ mlore than1 the
mlinimumn herein perseribed shall be adjusted to preserve differentials
existing on. June 16, 1933, and in no case shall wages be reduced
notwithstanding any reductions in hours.
Within thirty (30) days after this Code becomes effective, ema-
ployers shall report to the Code Authority action. taken by thema
since July ]1, 1933, with respect to adjustment of wages above! the
m inimnumIl.
SEc. 3. An apprentice may be paid not less than. 80% of the min-
imlum wages specified in Section 1 of this Article for a period not
exceeding a total of four (4) months. This apprenticeship period
mnay be served only- once during his lifetime Tlihe number of such
apprentices shall not exceed 5%0 of the total number of factory
workers, pl~roided that each employer may employ one such appren-
SmaroN 1. No person under 16 years of age shall be employed in
the Industry Inor anyone under 18 years ofage at orperatons or
occupations hazardous in. nature or det~rietal to health.
The Code Authority shall submit to the Administrator before
March 1, 1934, a list of suchl occupations. In any State an employer
shall be deemed to have complied with this provision if he shall have
on ~file a certificate, duly- issued by the ALuthority emp~ow~ered to issue
employment certificates showing that the emlployee is of the required
SEC. 2. (a) 1Employees shall have thre right to organize and bar-
gain collectively through representatives of their own choosing,
and shall be free from the interference, restraint, or coercion of
employers of labor, or their agents, in the designation of such rep-
resentatives or in self-organization, or inl other concerted activities
for the purpose of collective bar~gaiinig or o~ther mutual aid or
protect ion.
(b) No emnploy~ee and no one seeking employment shall be re-
quired a~s a cond~i-tion of employment to join any company umion or
to reframn from jounng, orgamizmlg, or assistmng a labor or~ganization
of his own choosing, and
(c) Emnployersd shall. comply with the ma xinunn~11 hours~ of labor,
minimum rates of pay, and other conditions orf empyloymlent, ap-
provred or prescribed~ by the Presidlent~.
(d) WC7ithin each St~ate this Code shall not supersede anly laws of
such State imposing mnor stringent requirements on employers reg-
ulating agSe of employees, wages, hours o~f work, or health, fire, or
general working conditions than. unrder this Code.
SEc. 3. Employers shall not reclassify employees or duties of
occupations pe~rformned by employees so as to defeat the purpose of
the Act or ofE this Code.
SEc. 4. Postinrg Cod?.--Each emnployer shallpot i cnsicou
places available to employees full copies of th~isCoe



SECTION 1. All fulrniture mnanulfnc. tured or sold by "' members of the
Industry shall bear andr have affixed thereto an NRA Label "
which. should rema-in attachedl to eatch piece? of breakfast furniture
w~hen it leaves the factor~y. Such labels shall bear the registration
number specially assignedl to each mnunl~facturer in the Industry
by thne Code Autho~rityv. The privilege of using such. labels shasll be
granted and such labels shall be issued to any manufacturer from
time to time engagedl in thle Industry ulpon application therefore to
th~e Code Auithority necompanieni d by a statement of comnpliance with
the standards of operatio~n pr~escr~ibed by this Code.
"' Memlber~s of the Indus~ltry "' shall be entitled to obtainr anld use
such labels if they compllly with the provPisions of this Code.



LrenoxC I 1. To further effectuate the policies of tle. Act, a Code
Auithoriiity is hereby consltitutedl to cooperated with the Admninistrator
in the admii n ist r~ationi of this Code.
SEC. 2. Thle Code A~uthlorits shall consist of tenl (10) individuals
or suc~h other number as.- may be approved fromn time to time by thle
Adlrnini.-tratorI, including seven (7) members of the Boardlc of D~irec-
tors, and the Exe~cutive Secretary, all of the ~National Breakfast
Furniture M1\anufalct rersII Association, Inc., and twoo (2) other break-
fast furlniturle assembllllerl s who are Ilnol~nm~embe of the National
Breakfast Fur1nitulre Manufa~fcturers 2ssoc~iation, Ilc., all to be se-
lected b~y a fair method of election subject to thre approval of the
Admllinistra;t or. The Governmllenlt shall b~e represen'ted on the Code
Auhriyby not more than three (3) mltlllEmbrS without votet to be
appointed by thet Adm~iinist rator, for terms of fr~om six months to
onle year'' arrangred so that thle termsll do not expire at the somne time.
rS;E(. 3. In order111 tha~t thne Codei Authority shall at all times be
truly representative of the Industry and in. other rcsp~ects comply
with the provisions of the Act, the Administra~to may prov~\ide such
hnearings~ as he ma~y (leenti f''proper; and there~ta fter if he shall find that
the (codle Aluthority is not truly r~eprese~lllntai ve or does nlot in other
respects complly with the prov,\i-innsl of the Ac~t, may1? requllire anl
approtpriate mlodification in the? method of selectionl of thert Code
See(. 4. Each tradelc or industrial assoc-ciationl plalrtilipating in the
selectionl or ac.tivities of the Code1~ Auithoriity shall:

(2) Ilubmi t to thie AdmtI Ii nIist ra;to r t ruei Icoie~s of its aIt ic Iles of ;I mo-

together w\ithl such other~I informationc~l as to msemnbership, organlliza-
fla~n. ;IMu :Iellntile RS (110 .\dmill.t l.~ 1 IYtrl;ly (1'wIll HOCCt~US~uY t
o'~cfllfec't ther pu1rpuses' of the \ct.f
Sr-.e. 5. 51lem1b(r of the Industryl'\ shall bet eniitledl to panrticipate
in the benelllits of Clthe netiviti('s of theC Code Autfhorlity: 1 and oparltiCi-


pate in the selection of the memberss thlereo~f by assenting to and
complying with thte requirements of this Code~ and susta~ining their
reasonable share of the expenses of its administrtion. Thie renson-
able share o~f the expenses of administration shall1 be deter~m~ine by
the Code Authority, subject to review by the Adinistrator, on, the
basis of volume of business and/or such other fac~to-rs as maly be
deemed equitable to be take int consideration.
SEC. 6. There Shall be established by thie Adii l nistrIatorl. at
National Industrial Relations Board for t'he Indu try, consisting of
an equal number of :representatives of emuployers and employees to
adjust all matters in the Clode relating to labor. Where a, majority
agreement cannot be reached, the Board shall select an imnpar-tiail
chairman to render a decision. The creaton anl functioning of
the-se Boards, including the selection of re~presentativezs of employ-ees
shall be in accordanuce with Section 7 of the Act. If no. truly repre-
sentative labor organization exists, the employee members of such
Board shall be chosen byF the Labor Adlvisory Boa-r~d of thze Natiounl
Industrial Recovery Adcmin ist rati on. The employer represenltat ives
shall be chosen by- the Code A~u~thority 'The Indus~trial Relations
Board mayn establish such subsidiary agencies constitutedl in like
manner as It finds necessary.

SECTIox; 1. Thle Code Authority Zhall have the follow\ing duties
and powers to the extent. permitted by the Act. If the Admninistra~-
tor shall d~eterm~ine that any action of the Code Authority or any
agency thereof is unfair or unjust or contrary to the public interest,
the Administrtor may require that such action be suspe~nded- forl a
period of not to exceed thirty dayvs to afford an opportunity for
mvestigation of the merits orf such action and further consid~r~ation
by such Code Authority or agency pending final action, which) hall
be taken. only upon approval by the Aidministrator.
SEc. 2. To establish appropriate machinery for the issuannc~e of
labels in accordlance w~ith Ar~tic~le VI of thlis Code: with th~e approval
of th Admiinistrator.
SEC. 3. 10 prescribe and appr~ovet a standard sys-tem of cost accounlt-
ing. which, when approved by t~he Aidministrator, shall become thle
uniform system of cost accounting for the I~ndustry, a~nd all mema-
bers of the Industry shall thereafter use a system of cost acc~ountingr
which conformls to the principles of and is at least as detailed ahnd
complete as such uniform systemn. The Code .Authlority, how-ever,
may perunit such exceptions or variations as it deems nece sanry to
meet th reqluiremlents of a particular situation.
SEC. 4. TO iDveistiga~ter and inf~ormn the Admlinistrator, on behalf
of the Industry-, as to the importation of comnpetitivce articles into
the United States in substantial quantities or increasing ratio to
domestic production on such term or under such conditions as to
render .ineffective or seriously to endanger the maintenance of this
Code and as an agency for making comlplaint to the Pre ident. on
behalf of the IndustryS und2er the provisions of the Act, with respect


SEc. 5j. The Code Au~thority may from time to time present to the
Administrator recommendations based on condlitions in thre I~ndustry
as they may develop which will tend to etfect the operation. of the
provisions of this Code anld the policy of th~e Acet anrd in particular
along the following lines:
(a ) RepIorts to aidministrator.--Recom men d nations as to thie re-
qu!irement'"s by the ~Admrinistr~ator of such furthr reports of persons
engaged in the ITndulstry\ of statistical informa~tion and kepning of
uniform accountts as may be required to secure the proper obseryr-
ances of the Code anld promote the pr~oper balanazouncingof prodluc-
tion anld consumption and the stab~ilization of thendsrad
(b) Service b ureauIr.--Recomm Ie n dat ions for the set ti ng up of a
Serv-ice Burea~u for the Industryp for accounting, credit, and other
purposes, to aid members of the Industry in meeting the conditions
of the emlergencyS and the requirements of this Code.
(c) Plilrlomte stabilizat7ionl.--Recom mendlat ions for the making of!
requirements as to trade pIractices byf personnns enae inl the Indus-
try as to methods and conditions oftra~ingr, andl the naming and
publication of prices which may be app ropriate to avoid discrimli-
nation, to promlote the stabilization of the Industry.
(d) Distress melrlcha n dise~.-Recommencnati ons for regulait ing the
disposal of distress merchandise in a way to secure the protection of
the owners and to promote sound and stable conditions in the
(e) De~ainig toith inlequaifices that endanger indutstry an em-
ployme~nt.-R-TecommIlenda t~ions for deli ng w. ith any inequal it ies that
may otherwise arise to enda~nger the stib~ility of the Industry a.nd
of production anrd employment.
(f) lIn restigation. of violations.--The Code Authlority is hereby
appointed as an emergency committee. for this Code of Fanir Compe-
tition and subject to review and disa\pprovaTl1 of the1 ~Adm~inistratfor is
em~powcredl to investigate whether the prov~isions of this C~ode are
being oblscerved, to make complaints concerning alleged violations, to
coopera~te with the Admninistrator of thie Act; to ~r~opose addtitions,
mnodifications, or revisions of this Code and gecnerally to perform such
other acts as may be realsonab~ly nece~issary and~ propetr to put the p'ro-
visions into effect and- necom~plish the objects and I1purposes of the
~Act. In the event. such committee shall find theit Rurles of ]Fair Comn-
petition, or any~ pr~ovisions of this Code, havet been. violated, the. vio-
lation shall be recpo~t'edl to the Code Aulthor~ity for slc~h action as thIey
dleenti propler in necotrdance~ w~ith this Code, includlingr i inappropriate
cases, report to thec Na~ltional Recov,\ery Athniiniste~ntion, or tak~e ap
propriate~ steps to inistituite license proceedings in acc~ordlance wih
law or ay other ppropriae legal roceedinS poiefri h
SEC. 6. Such recommelnn a~ltcntio wh~en approvedl b~y thle Admninis-
trator, after such noictic~e aInd' hearlling as het sha11 l specify, s~hall haver
the samec force andlr effct as anyl o~ther poi"" ions" of this Code.
SlEO. 7I. Thej Codte Aulthor~ity is also( se~t up to, cooperate with th~e
Admilnlilltltrator in. making inivestigations ars to the frnc~tioniing nod
ob~servanlce of any of the pr~ovisionrs of thiis C~ode at its ow-n instannce


or ozr complaint by any person a.ffected, subject, to review and dis-
upprovral of the Administrator.
Slsc. 8. W~ith a view to keeping the Presidenlt informed as to the
observance or nonobservance of this Code of FIiair Competition and
as to whether the Industry is taking app~opr1iat~e steps to effectuate
.the dleclared policy of the Act., each member of the Industry shall fur-
nish duly certified reports in substance as follows, and in such form
as mnay be provided and at such .interv\als as the Code Aut~hority may
prescribe, subject to review and disapproval of the Admninistrator.
(a) Wiages and hours of labor.--Returns every 4: weeks showing
actual hours worked by the various occupational groups of employ-
ess and minimum. weekly- rates of wages.
(b) Machinery dazta.-RLieturns every 4 weeks showing number of
machines operating each week, the number of shifts and the total
number of maachine hours eachz week.
(c) ReportS of p productions sales, s~tckcs, and orders.--Monthlyn~
reports showmrlg prutini terms o~f the commonly used ui
(i~e.) breakfast furniturec, stocks on hand, both sold and unsold,
stated in the some terms.
SEc. 9. Thet Executive Secretary and/or the ALssoc~iation is hereby
constituted the ag~encyS to collect and receive, as confidential inrfor-
mation, such individual members' reports. Such reports shall be
filed byT the Secret~ary for reference m. such formr as to elimnina~te
identification of any individual mlember, and shall be available for
the inspection only by the Sercrtary or the Administrator or their
duly authorized representatives. The Et~xecutive Secr~etar~y shall
furnish the Code Authority with the sununaries of the data and
statistics he compiles from the members' individual reports.
SIc. 10. In addition to the information required to be submitted
by the Code Authority, ~there shall be furnished to Government
Agencies such statistical in format ion as the Adminisitra~tor may deem
necessary for the purposes recited in Section 3 (a) of the Act to such
Federal and State agencies as the Administrator may designate; nor
shall anything in any code, agreement, or license relieve anyT person
of any existing obligation to furnish reports to Government agencies.
SEc. ~11. 1Each member shall, withiin ten ('10) days after the effee-
tive date of this Code, publish to its customers and file with the Sec-
ret~ary and/or the Associaltion each and every price list, duly certified
by a proper executive, showing all prices of their respective merchan-
dise assembled or pr~oc~essed in the Industry, and all terms. ]Each of
the first lists of prices and terms of sale filed b~y any nembiers, as
above provided, shall take effect on the date of filing thereof. N~on'e
of th~e prices and terms in any list filed by any mnember~s shall be
chlangaed except by the filing of suchl mnember with the Secreta~ry
and/or thie Atssociation of a new list of prlices arid terms, which shall
become effective five (5) days after the date on w7Phich such new price
list and terms of sale shall have been filed. The failure of any manu-
facturer to adhere to his prices and terms of sales filed, as herein pro-
vide~d, alnd any other deviation from the provisions of this Section
shall be an unfair method of competitionn*
see paragraph 2 of order approving this Code.


SEc. 12. Members of the Industry shall report on th2e tenthl (10t~h)
day of each month to the Code AuthorityS a list of close-outs and sec-
onds accumulated in the preceding month, and shall fdle with. the
Code Authority its price list and terms of such seconds and close-outs
mn accordance with the provisions as herein provided in Section 10 of
Article VII. The member may sell such seconds or close-outs at any
timae at his own price as ~filed withl the Code Authority, provided, he
shall distinctly mark his products as Close-Outs or Seconds, and shall
thereafter fur~nishl the name and adldres~ses of the purchaser of close-
outs or seconds to the Code Authority.

The following practices constitute unfair muethlods of competition
and are prohibited.:
RUL;E 1. False Marki~ng or Branlding.7- Thetr false markI~ling or brand-
ing of any product of the Industry'3 which has the tendency to m~islead
or dec~eive culstomners or prospective customers, whether as to the
grade, qluaityr, quantity, substances, chara~c~te r, nature, origin, size, fin-
ish, or preparation of any product of the ICndulst ry, or otherwise.
nRILE 2. ,I;//bir~eir&iddO f O f FPrlac! Or M7&Culsfcliriy A n verf 8/Hy.-,
The mnakingr or causing or permitting to be mande or plublishedi any
materially false, inaccurate, or cleptive statemcnt by w~ay o~f adver-
tisement or oth~erw\ise, wcPhether co~ncer~n i h ae qaiy un
tity, substance, character, nature, origin, size,r f nuaish, or rearin-
of any product of the Industry, or the credit terms, values, policies,
or services of any member of the Indtustr~y, or othlerwise, having the
tendency or capacity to mislead or deceive c~ustomners or prospective
RULE 3. COllmetrcial B~ribery.--No member of the IndustryT shall
give, permit to boe griven1, or direcctly offer to givrle, anything of value
for the purpose~ of inrfluencing or rewarding the action of any em-
ployee, agent, or representative of another in relation to the business
of the em-ployer of such. employee, the principal of such agent or
the represented partly, without the knowledgerc of such employer,
principal, or party. Commelcrc ial br~ib~ery proisionso harills not b
construed to prohibit free and general ditri ino rilscm
only us~ed for adv\erti ing~ xccpt so far as such, articles are actually
Iisel for co~nuric icial br~ibery~ as hereinabove defined.
RUOLE 4. Interf7/rcurl/ c 2'l/A Coillf~nc uffl Rel /f orls.--Al aioulyUl
induicingc or attemiptingr to induce the breach of an existingr oral or
written contract between a, compeyttitor anid his customer or source
of supply, or inlt~r~fe~r~inr with or clbstructingr thle perlfor~mance of
nysuch1 ccntr~actual duties or services.
iTULE 5. Secret Rebatefs.-Th'Je sc~relct payment or allowance of
rebates'~, refunds('l, C'ommli.Ce.sio,1 ns, credits, orI Ilourndc~ diiscounts, whecther
in the formll of mloney' or thrwfll~ ise~ or theC SeCre''t exeSf'lionl to certainly
purchasers of specrin services or privilege o xeddt l
pur~chasers onl likec terms andl conditio~ns.
IRULE G. Cirk9ll of Ylrkf8. FrEm.AnnR, or GI;flR.-The Offer~ing or
giving of pr~ize~s, premilums, or gifts in c~onnlctiol~n withl the sale of
prodnelcts, or as an inducementllcn therleto, by any schemc whlichl inv\olves
lotteryr, mlisrepre~~c~ etact ion, or fraudc, or selling any13 furnit~ure products


or any article. whatsoever included in the purchase of breakfast
furniture, at an unreasonable price, for the purpose of evading or-
defeating the terms of this Code.
RULE 7. oepcriNG rON .--The dlef namati on of conipel~t itors byT falsely
imputing to them dishonorable conduct, inability to per~formu con1-
tracts, questionable credit stranding, or by other false retpr~esentations
or by the disparagement of the grade or quality of their goods.
Ruran 8. Threats oif Litiga~tion.-Te publish~ing or circularizing of
.threats of suits for infringement. of p>atents or trade marks or of
alny other legal proceedings not in grood fai~th anda without bringing
such suits or proceedings within a reasonable time, with the ten~dency
or effect of ha~rassing competitors or intimnidating~ their customers.
RULE 9. EspiV'-onage of ComIpe'titors.---Seclur1ing confidential inform
mation about a competitor's business by a false or misleadingp state-
ment or representation, by a false impyersonatiion of one in authiority,,
by bLribery, or by any other unfair method or any other secret meansl
where the effect, may be to hinder or stifl~e competition.
RIZ~LE 10. PJrac~y of trade marks a~nd tradel niamsc,.-The imita~tion
of a trade mlarki, trade name, slogan, or the other marksli of idenltifi-
cation of competitors, having the tendcencyg and capacity to mislead
or deceive.
RULE 11. 187#38 Of 881/IC1HCltnf.--Seeling on more faRYOl,zle terms
than two (2%0) percent in thirty (36j) dlays, net sixty (60) days from
date. of shipment; provided, however, that where the purchlaser be-
eause ofY11-~- l ~V~Inl; de rpart~mentall accounting practices requires a cash discount
of ~five (5%) percent and the memlber consents to it, invoices shall
be increased sufficiently to permit such discount, and in every such
case the net return of the memrrber shall not be less than it would
have been had th ensht discount been twF\o (2%0) percent instead of
five (5%0) percent. Where it is the practice of a buyer to make
monthly settlement of all invoices, a member may allow the dedue-
tion of thie cash discount if payment is moade not later than the
fifteenth (15) of the calendar mont following dates of shipment.
Credit terms shall be includced in the! statements anld billheatd of each
member of the Ind ustry.
RULE 12. Con~Signmen~;'t.--The shipping of goods on consignment or
memorandum either directly or indirectly, except under circumn-
stances to be defined by the ICode Authority where peculiar circum-
stancecs in the Industry r~equir~e the practice.
RtUza 13. Ret~r/nB.--(a) There shall be nlo returns of p~o~c~elain
breakfast furniture except for factoryS defects, and except for such
mnerchanldise not shipped within the specified time in full comupliance
with the specifications and terms of the order. The above exrceptionl
shall apply only to claims and :returns by cusjtomlers made wiPithin fif-
teen (15) days ~from th2e receipt of goods by them.
(b) Merchandise defective in manufacturing or assemblingr not
discovered or readily ascertainable within t~he period orf fifteen (15)
days ro threipt of goods by customers mnayberurdan
accepted for credit by members, providing, however, the mIemlber of
the Code Authority appointed byv t~he Administra~tor shallspif
the time and place for a hearing between member of the Industry:
and customer to determine whether such defect was due to faulty,
manuifactuiring or assembling.


3 1262 08850 4765

SRULE 14. Pzll-barcks. rThere shall be no allowances on Pull-
Backs of breakfast furniture, nor shall they be accepted for credit
by anly member of the Industry, except as provided for in Rule 13
of this Article.
BRUL 15. Other unlfair p~racltices.--Nothi ng in this Code shall limit
the effect of any adjudicationi by the Courts or holdlinga by the Fed-
eral T'rade Commission on comnplaint, finding, annd order, that anly
practice or method is unfair, providing that such adjudication or
holding is not inconsistent with any provision of the Act.

ScTroN 1. (a) This Code and .all thleprovisions thereof are
expresslyT made subject to the r~igcht of the President,- in accordance
with the provisions of subsection (b) of Section 10 o~f the Nat~ional
Industr~ial Recov'ery Act, from time to time to cancel or modlify
any order, approval, license, rule, or regullation issued under TitleI
of said Atlct anid specifically, but without limnitation, to the right of
the President to cancel or modify his approval of this Code or any
conditions implosed by himr upon his app~roval thereof.
(b) T'his Code, except as to provisions rcqu~ired by the Act, may
be modified onl the basis of ex~er~ience or changes in circumstances,
such, modification to Ibe based upon application to the Admlinistrat~or
and such notice of hearing as he sha~ll specify, anld to become effective
on approval of the Adminlnstrantor.-
SEc. 2. Such1 of the pr'ovjsions of this Code8 as are not required
to be included thlerecin by the Act may, with the approval of the
Administrator, be mIlodifiedl or eli~minatedl if it appears that the public
needs are not being srerved~ thereby and :as changes in circumstances
or any experience rmay indicate. Thl3 "shall remlain in effect unless
and until so modified or eliminatedl until the expirjltion of the Act.
It is contemplated that from time to time supplementary provisions
to this Code or additional Codets will be submlitted for the approval
of the Precsid-ent to prevent -unfair competition mi price and other
unfair purposes and to promote the policies of Title I of the Act
and which shall not conflict with the provisions thereof.

N~o pr~ovision of this Code shall be so applied as to permit monopo-
lies or mo~cno-pol istic practices, or to elimiiinate, oppress, or discriminate
aga~inst small enlterprii~ ses

WhTlereasn the policy of th~e A~ct, to increase reanl pulrchansing power
will be impass,~iblee of consummation:liol if p~riceS of goo1s anod services
incrensec as raplilly as ages!C, it is IC(TliCrecgie tha~t price increases
.houbll he( deluvdc(' andl thant, whel~n made~, thle amlle. shoulld, so far as
I'reasonally possible be limnitedl to lc~tua~l increases in the seller's costs.