Code of fair competition for the cylinder mould and dandy roll industry as approved on March 23, 1934


Material Information

Code of fair competition for the cylinder mould and dandy roll industry as approved on March 23, 1934
Portion of title:
Cylinder mould and dandy roll industry
Physical Description:
p. 397-408 : ; 24 cm.
United States -- National Recovery Administration
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Papermaking machinery industry -- Law and legislation -- United States   ( 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. 1399-44."
General Note:
"Approved Code No. 358."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004942778
oclc - 654845727
System ID:

Full Text

For sale by the Superintendent of Documents, ~Washington, D.C. Price 5 cents

Registry No. 1399--44

Approved Code No. 858





We no ouILPArr

UNIV. OF. FL L 8.~


This publication is for sale by the Superintendent of Documaents, Governmlent
Printing Offlee, Washington, D.C., and by district offices of the Bureau of
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Approved Code No. 358



As Approved on March 23, 1934


Arln application having been duly madepuuatoaninul
compliance with the provisions of Title I of h Nrsantional ndutriall
Recovery ACct, approved June 16, 1933, for approval of a Code of
Fair Competition for the Cylinder Mould anld Dandy Roll Industry,
an~d hearings having been dulyT held thereon. and the annexed report
on said Code, containing findings with respect; thereto, having beenL
made and directed to the President:
NOW, TH-EIREIFORIE, on behalf of thle President of the United
States, I, Hugh S. Johnson, ~Admninistrator for Ilndustrial Recovery~,
pursuant to authority- vested in. me by Exrecutive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects w\;ith
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.
HUnGH S. JoHNson,
Administrator for Industrial RFecovery.
Approval recommended :
Division Ad ministrator.
WommaINGro^, D). C.,
March a3, 1934.

48303. --25-13 --34



The Wihite H~iouse.
SmR: Thnis is a report on thne Code of Fiair Comlpetit~ion for the
Cy~linder Mvlould and ~Dandy Roll Inldustry as revised after a Public
H-earing conducted in Wasohingtonn on the 26tht day of February
1934, in accordace~ll with the provisions of the National IndustriaI
Recoveryg Act.

Employment is limited to 8 hours per day and 40 hours per week,
and to 6 days in any 7 day period, with. the reception that in peak
petrioc-s a tolerance of 8 hours pecr week: in. any 6 weeks during anly
6 months' period is permitted, andX that he~atinrr firemen, trucken,
and shipping clerks may work 44 hours per weeR.
A minimum wangec of 40 cents per hour is ~stablishled' except for
offce employees who are to be paid at t~he rate of not less than $15.00
per week.
Femlale and male emlployees doing sulbstanlially the same workr
shall be paid at th~e same rate.
Over~time is to be paid at th~e rate of one and one-half th~e regular
rate for all hours worked in excess of 8 hours per dayT and 40 hours
per week.,

The Cylinder Mof~uld and D~andy Roll Industry is a small, highly
spCc~ializedl unit of the Pulper Making I~ndustry. Thle Industr~y
ma~n lluc~~turles and repalirs cylinder owII.1-, and lu ndyS rolls, plain
or wa;telrmarkel~ d, and is dtepe~ndent upon thec ac'tivities of the Paper
Industry. It employs normally~ii nlabou 150 emplo yees, mostly highly
skilledl, and has an anual production capacity of about $600,000.
Uwllllr the provisions of the c~ode the payrolls wCSill p~lres~rve th
ratio of in~(;crn- that was~1 made~l under the Presidencrt's Rec-emlployr-
nilent Ag~reemlent, which was1 an inlcr~ease of 64(r0 fromll thle 1932
leel ndler the 40 hour week~l. as estab~lishedc by\ the codet it is
estimal~tedc tha;t the nllllh~r of employees wvJill be! inrcreasedl 28y..

Thle Deputy A~lllininistrat oii' inl his tilnal rep'lort to mc onl snica Code~
having~ foumnI as herelcinl set forth nMlr on. the bas~iis of all the pro'-
cccelings.- in thlis matter('l:
I .fimtl that:
(a) Said Calle is wvell clesi gn l~l to p~romon(te thec policies and pur-
poses' of Title I of thre Sutio~nal Induslltriall Rcover'Cy Act, inc~ludn
remIo\al of C11tr1ulfctions to theC free'~ Ilow of inlte'State andl foreign


commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of
industry for the purpose of cooperative action amrlong the trade
groups, by inducing and mnaintaininL~g united action of labor aind
managlemlent under adlequa~te~ governmental sanctions and supervi-
sion, ~by eliminating unfair competitive practices, by p~romo~cting the
fullest possible utilization of thne pr1es~nt, productive capac~city~ of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing thie consumption of
industrial and agricultural products through. inc~'~~~ilr easing purchaing~
power, by reducing and relieving unemploymennt, by improving
standards of labor andJ by otherwise. rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 emn-
poees, and is not classified by me as a major industry.
() The Code as approved compl~lies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) oSection 10 thereof ; and that the applicant associ-
ation is~ an industrial association truly- reprt-enltaltive of thne afore-
said Industry; and that said association imposes no inequitable
restrictions on, admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic p~rocess have
not been deprived of the right to be heard prior to approval of said
For these reasons, this Code has been approved by me.
HUGH S. JoHNson,
M~ancI 23, 1934.



To effec~tua:te the policies of TCitle I of thie National Industrial
RecovTery Act, the following provisions are established as a Code of
Fair C'ompetition for the Cylinder Mould and Dandy Roll I~ndus-
try, and shall be the standard of fair competition for this Industry,
and shall be binding upon every member thereof.

The following terms are used herein with the mneaningns set forth
below :
SrvenTow 1. The term "' Cylinder Mlould and D~andy Roll IndustryT "",
as used herein, or the Industry m~earls th-e manu-facturingp, :repair-
ing, and recovering of Cylinder Moulds and/or Dandy Rolls (plain
or wvaternuar1 1ked3) for sale and/or the sale of any of these products
or services.
SEErmsI( 2. The term "L employee ", as used herein means anyone
engag~ed in the Industry in any capacity, receiving compensation
for his services, irrespective of the nature or method of p~aym"ent
of such compensation.
Swrms.~cl 3. The term "L employer ", as us~ed herein, means anyone
by whlomn any" such employee is complellnated or employed.
SECTION 4. The ter "L mnembrcl of thne Indus~try ", as usedc herecin,
menlcsl anyone engag~ed in the Indus~try as above defined, either as
an employer or onr his owsn behalf.
See:.l~lno 5. The term LA~ssociation ", as u~sed ]herein, mleans the
Anciltio~n of Cylinder ~ Mould and/or Dandy Roll Maklers,
Repai~rers, and Recoverers~.
SIECTION 6. TPhe termr effective date "), as use~d herein, means the
scon~lld Mfonday7 after approval of this Codec by th~e ]Presi dent.
SI:l'rcNo 7. Thel tcermsi Presidecnt ", "'Act ", andl "Admninistrator ",
as Ilrn` Il1 herei:nl ean rcspc-ct-ively, the ]Presidncrt, of the Unitred' Statcs
of Amelr~ica, Title I of the National Tndus~tr~ial Recovery Act. and the
Athnllilnfi':trato f~or I~ndustrial Rcovery-~ urunler sa~id Act.

AnnLE: TIII-Hors

S1:rllenow 1. No emplloyee. exc~ludingr ac~counting, relerienll andl oftiee
employeesc~ will be~ employed~r in ece(~ss of for~ty 4) or i n
one (1) w\eek or eight (8)i hours mn any t.wernty- fou) icir (94 hour p
riod; excep~lt, thnat durI ~ingI a ny six (6i) week~l s in alny six (6) monthly ~ S'
perIiod, employees maay b~e emloyed,! c~ not mor,~e I'anlr fort~y-eigh~t (48)
hour11s per' week'l. pr'ovided~ that onei and~ onc-ha:lf (125) t~imes the
no~rma~l rate of pa;y shall he~ paid for hlour! worked in. excess of


eight (8) hours per day and forty (40) hours per week. The fore-
going limitations shall not apply to:
S(a) Those engaged in executive, managerial and su~perv\isiory
capacities (except foremnen.) who regularly- receive thnirty-five ($35.00)
dollars or more per week, or outside salesmen.
(b) Heating firemnen, truckmen, shipping clerks and. delivery em-
ployees may be permitted to work not in excess of fort~y-four (44)
hours in any one (1) week, provided that one and one-half (11%)
times the normal rate of pay shall be paid for hours workred in ex-
cess of eight (8) hours per day and forty (40) hours per week.
(c) W~atchmen may be employed not more than fifty-sixr (56)
hours in any one (1) week, nor more thnan. sixr (6) days in any one

''(d) Employees on emergncw ency maintenance or emergency repair
work involving breakdown or protection of life or property shall
be permitted exemption fromn this section; but in any such special
case at least one and one-half (11%) times the regular rate shall be
paid for hours worked in excess of eight (8) hours per day and forty
(40) hours per week.
SEC'TION 2. NO ROCOUntilg, clericRI Or office employee shall be em-
ployed in excess of forty (40) hours per week or nine (9) hours
per day. Eight (8) hours shall constitute a normal working day.
SECTION 3. NJo employer shall knowingly permit any employee
to work for any time which, when totalled with that already per-
formed for another employer or employers in any Industry exceeds
the maximum permitted herein.
SECTION 4. Employers performing manual work or who are en-
gaged in mechanical operations shall not exceed the prescribed maxi-
mum number of hours.
SECT~ION 5. No employee shall be permitted to work more than
six (6) days in, anly seven (7) day period.

SECTION 1. No employee shall be paid less than at the rate of
forty (40) cents per hour, except
(a) Office, clerical, accounting, sales employees, compensated on a
weekly basis of not less than at the rate of fifteen ($15.00) dollars
per week.
SECT'ION 2. This Article establishes a minimum rate of pay re-
gardless of whether an employee is compensated on a time-rate,
piece-work or other basis.
SECTION 3. Femrale employees performing substantially the same
work or performing the same duties as male employees shall receive
the same rates of pay as maale employees.
SECTION 4. No employer, whether acting through agents or other-
wise, shall accept rebates on wages or give anything of value! or
extend favors to any person for the purpose of influencing rates
of pay or the wtlorkinlg conditions of his employees.
SECTION 5. A person wtlhose earning capacity is limited because
of agle, physical or mental handicalp, or other infirmity, may be
employed on .light work at a, wage below the minimum established
by a, Code, if thie employer obtains fromr the state authority, desig-


nated by the United States Department of Labor, a cerltificate
authorizingt such pe1~rlo's emlployme nt at such wages and for such
hours as shall be stated in the certificate. Such authority shall
be guidedl by the instructions of the United- States D~epartment of
Labor in issuing certificates to such persons. EFach employers shall
file monthly with the Code Authority a list of all such persons
employed~ by him, shlowinlg the wages paid to, and the maxsimumn
hour ofwor fo suh eploee; provided, however, that such
empl~loyees shall not exicreed five ()preto h oa ubro
employees, but each. emlployetr shall be entitled to at least one such
SEI(.lo 6.h fjEquitable adt'justmen~lt of all wngnes~ shall be made: by
evclry employer who has not he~retofore made` suchl adjustments
under the National Indlstr~ial Recovery Act. Within thirty~ (30)
days after the! effective tlate of this Code all such adjustments ma~de.
undlcr the AIct shall be reported to the Code Authority andr to the
Admninistra t orI. In no ease( shall hnourl~y or piece r~atesj be redlucedl.
~SE~CTION 7. Each employer shall ma~;ke payment of all wages dlue
in lawful currency or by negotiable chlecek payable on deamnd.
Wages shall be exempt fromn any de~duction-s, other th~an those vol-
untarily agreed upon.,
ArcricLr E V--GIENERAL L-ABOR PRo'vTsioxaT

SECTIIION 1. No person under sixteenr (16) years of aIge shlall be
emlol'l:yed in. this Industry and no onle under eigh~teenl (18) years
of age shall be employed in op~erationls or occupa>;tionls hlazardous
in naturle or dctr~imnlrtal to hea~lth~.
The Code( Aiuthority shall -ubm~nit to the Admlinistratlor' before
June 1, 10,34, a list of such. opera~tions or occupall~t ions. In any Stute
ant em~ploye'clr shall be deniedl~c to have comlipclie with this provision
as to age'( if he shall have on file a certificate or permillt, dulyT issued
by the Aul~thor~ity in such State empoweredl to issuec employment
or age certill a~te~ or p~ermits, howc\\ing~ that the emlployet e is of the
SlEe nos( 2. In compyliance with Section 7 (a) of th~e Ac~t, it is
(a) EimployePes sha~ll harve. the. Iiriht. ton o~rganize alnd ba1rgnin col-
lectively through recpresentalt~tives of their own choos~cing andl shall
be( frees flcrom the inlter~fere nce, restraint, or coerccionl of employers
of Inlbcor or thlei r agen Ith in the dlesig~nat ion of such rIt~Iepresnttatives
or in self-cor~ganizlt ionl or in other conlcer~ted~ activities for thle pur-
p()( eof collectivg e burga~;iningr or o~lther mutual aid or p~ro~tc~tion.
(b) No e~mploySee and no( onle seeklingr employn~ men shall b~e re-
quiredl as a condlition of emnployment~rt to join anyg c'ollnininy unionI or
to reflrain fl~rom joining. oirg~anizing~. or a sistingC a Inborl organization
of his own choos~ingr.
(c) 1Emplloyers shall comp~lly with thec maimumjllll hours of In~or,
minimumllll ratesC of pa9y, andl other condtitio~ns of empl-loymelnt appr~c- vedi
or prscribedl by th~e Presidernt.
hg.PINo 3. No provIIi'ionl in this Code1~ shall supprelred any State
or Feder~cin1 law whlich] impl~o.Ces on1 clplolyer's' mo1re stringenlt re-
quiremelnts as to age~ of emloyeesl~~s wa;ges, hourrs of dor~k, or as to


sofety,h~ealth~, sanitary or general working conditions or insur-
ance or fire protection, than are imposed by this Code.
SECITION 4. No employer shall reclassify employees or duties of
oc~cupationsi performed or engage in any other subterfuge for the
~puroePS of dlefeaingil the purpo'.~ sesi or plrovision s o f the Act or of this
SECTON 5. Each employer shall kreep conspicuously posted at all
timesr in each shop, establishment or separate unit or enterpr~Iise coml-
plet-e copies of the labor provisions of this Code to the exrtent neces-
sary to malke them freely accessible to all emlol-lyee~s.
STECTION 6j. Each. employer shall proviide for the safety and health
of his employees at the place and during the hours of their employ-
ment. Standards for safety atnd health shall be submitted by the
Code Authority to the Adminnistrator within three (3) months after
the effective date of this Code.
SECTION 7. No member of the Industry shall directly or indirectly
sublet to any employee, the labor services required in the execution of
any contract of such member. This should not be construed to cover
work commllonly known as piece-work.
To effectuate further thne policies of thte Arct, a Code Auxthority is
thereby constituted to cooperate with thne Administrator in the admini-
istrationn of this Code.
SECTON 1 Oranization of the Code Authority.
(a) A CodeSIo A1 Outhority shall consist of five (5) individuals, or
such other number as may be approved from. time to time by thne
Administrator, to be selected as hnereinafter set forth. TIhe Adminis-
trator, in his discretion, may appoint not more than three (3) addi-
tiolnal memb~ters withoutt vote) to represent the administration.
(b) F'ive (5i) individuals to be chosen by the Industry shall be
elected at a meeting of the entire Industry, such meeting to be called
by the Asnin~c~~tion within five (5) days after the approval o-f this
Code. Notice of such meecting r shall be ent, by the ALSssociation. by
registered mail at least ten (10) days in advance of the election. of
all members of the Industry who are registered with the Association,
or whose identity and address can be ascertained through diligent
inquiry. Each member of the Industry3 who agrees to sustain his
reasonable share of the expense of administering this Code shall be
entitled to vote, and shall have one (1) vote, said vote to be cast
inl person, or by proxy. ~A majority -vote of the members participat-
ing: in said election shall be necessary to elect.
(c) Individuals so elected shall serve for one (1) year, at the end
of which time there shall be another elections conducted as herein-
before provided. Individuals on the Code Authority shall be eligible
for reelection. Vacancies in the Code Authority occurring during
the year shall be filled by the vote of the remaimng members.
SIECTION 2. M/emxbers of the Industry shall be entitled to partici-
pate in and share the benefits of the activities of the Code Auth~ority
and to participate in the selection of the members thereof by assent-
ing to and complying with the requirements of this Code and sustain-
rng their reasonable share of the expenses of its administration.
Such reasonable share of thne expense of administration shall be deter-


mined byT the C~ode Authority, subject to review byT the Administ~rator
on the basis of vr)olume of business and/or such other factors as may
be deemed equitable.
SECTION 3. T~he said Association shall: (1) Impose nlo inequlitable
restrictions on membership anld (2) Submit to the Administrator
true copies of its Constitution anrd B1y-Lawsl, and any amendments
thereto, together with, such otherl information as to .membership, or-
ganization and activities as the Adcminist~torao may de~em necessary
to effectuate the purposes of the Act.
SECTION 4. IR Order that the Code ~Authority shall at all times be
truly representative of the Industr and in other resp~ects comply
with the provisions of thne Act, th Administrator may provide such
hearings as he may deem pr~operl; and thereafter if he shall find
that the Code Authlority is not truly~ Irpreiselntaive or does not
in other respects comnply with the provisions of the A-ct, may require
aln appropriate modltihen~tion in the method of selection of thle Code
SECTON 5. Poerls' and Duties. The Code A~uthlority shall have
thte followmingf duties and powers to the extent permitted by the Act:
(a) To adopt By-L~aws and Rules and Regulationls for its pro-
cedure and for the administration. of the Code.
(b) To make such reports as the A~dmninistrator may require and
collect from memberc~s of the Industry periodically or as often as it
may direct sworn, or unsw~orn. reports on. wrPages, hours of labor, con-
ditions of employment;, number of employees, and other matters
pertinent to the purpose of this Code or of the Act.
In addition to information r~equiredl to be subm~nitted- by the! Code
Authority there shall be furnished to govrnm\ent1II~l an~ccies such
statistical informaltioln as the Administrator may dleeml n~c~essaryl for
the purpo es~C' recited, in Section 3 (a) of the A-1ct, but noth~ingf herein
contained shall relieve anyone of any existing obligation to furnish
reports to government agnc~cies.
(c) To investigate any compnllaintss of violat~ionsl of this Code and
to seeki adjustments thereof, under such rules and Iregulations as mlay
be prescr~ibedc by thle Aidministrator.
(d~) .To recommend to the Administrator further trade practice
provisions to govern memb'lers of th~e Inmdustry in thetir relations wlithi
each others or with o~thetr indus~lt ries, anrd to recommend to the Admlin.
istrator Iineail~csur for indullstrial planninirg, incluinglii stabilization of
(e) To appoint commiiiittees to carry out its du~tiesi if deemedci neces-
sary, .-uch as the following: Admimlstratio~n, Cmplia~nce, F~inance,
Trade11 Relations. Subdivisionlal, and such otherr commiiitt ees as miay
be required.
(f) To study the effect of the prIovisions~ of: thiis Code ulpon thle
Induslltry and considering ,Icpropsals for amndmencr ltsrt or miod~ificationls
and maklie recomnmenda~t ions~ there~on frocm timle to timec~ to the ~Adminm-
ist enitor,l which Ilnrlnewlments or mod~'i fkt ions sha1 lc~~ll C become eftive as
par"t of the Code upon~l approval by thle Adminiisitra;tor, after such
notice andrl hearing as he matLy spcci fy.
(g) TPo applOint, a trade1I prnative~' Conunllitter~ whiCh 41hall meeCt with
thle trade pract~icec commlrittees appo~rinted~ undrc1 ;1uch1 other codes as
ma~y be? rclaltedc to the inldlutr~y forl thle purpose of formlu:lating fair


trade practices to govern the relationships~ between production. and
dlistrib~ution em~ploylers under this code and under such others to the
end that such fair trade p practices mayd bec pthropos~d to heAdi
istrator as umrendmnents to this code and uhohrcds
SECTION 6. The Code Authority may appoint a secretary and anyg
and all information requested by the Code Authority shall be filedl
with thre secretary and deemed confidential, and the reports of indi-
vidual members shall nrot be divulged to any member of the Inmdustry
except in compiled summaries, but shall be available to the At~dmin-
istrator upon request.
SECTION 7. If the Administrator shall determine an~y action of the
Code Authority or any agency thereof ma~y be unfair or unjust or
contrary to the public interest, the Atdmimlstrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by such Code
A1Cuthority or agency pending final action, which shall not be effective
unless the Administrator approves or unless he shall fail to disap-
prove after thirty (30) days' notice to him of the intention to proceed
with such action in its original or modified form.

SECTION 1. In the conduct of its business, each member of the
industry shall use a method of cost accounting which conforms to
the principles of the standard method of cost accounting to be for~mu-
lated or adopted by the Code Authority and approved by the Ad-
ministrator. Variations from or modifications of the adopted
method mnay be required to fit the individual needs of particular
members, but the expression standard method is to imply in its
nrarrowe~st sense: (a) a definition of accounting terms, in order that
all members of the Industry may include the same~t elements in
various stages of cost; and (b) a model or standard to provide a
gauge of t~he requirements for an adequate procedure. Full details
concerning such method shall be made available to all members.
SIECTION 2. Within seven (7) days after the effective date of this
Code each member of the Industry shall publish his prices, terms
and conditions of sale on all products of the Industry. Coincident
with such publication, each. member of the Industry shall file with
the Code Authority a complete~ schedule of such prices and terms
with su~fficient copies for all members of the Industry, and the Code
Authority shall Immediately distribute to all members of the ]In-
dlustry a complete schedule of such prices, terms and conditions
of sale.
SECOTON 3. In the event of any change by any member of the
Industry in any price, terms, or condition of sale, he shall file full
and complete copies of every change with the Code Authority. All
such changes shall become effective immediately upon such filing
unless and until the Code Authority shall designate periods within
which any such changes shall become effective, subject to the ap-
proval of thle Aidministrator, but in. no case shall any such period
exceed seven (7) days after the date of the filing olf the change.
Copies of all changes filed sliall be immediately distributed by the
Code Au~thority to the members of the Industry. Information on


such price cha~nges shall be available to the trade to which it is ap-
plicable, on the effective date of such change and each member shall
coincidently file such. informaition in. the office dlesignated~ by the
Code ~Authority for immediate distribution by the Code Atuthlority
to the members of the Indcust ry.
SECTION 4. In1 the event th~e Code A~uthlority) shall m~ake anyg change,
as authorized in Article VII, Section 3, inl t~he e~ffe~ctive daltes of filed
prices and any member of the Industry shall not receive sufficient
notice of the filing b~y any other member of any change in prices or
terms and conditions of sale as will enable the member first men-
t~ioned to meet the said change onl the effective date thereof, such
mlemnber mnay file with the Code Authority such channges in hris prices,
terms and conditions of sale as may be required to mleet. the change
filed by the other member. Changes so filed shall become effective
on. the same date~ as the effective date of the change of the mtem-
ber Lfirst filing as aforesaid, or if such change has already become
effective, then the changes subsequent~ ltly filed shall become effective
SECTION 5. No member of the Industry shall sell, pay a rebate, or
allow a deduction at any time to any person except mn accordance
with his prices, terms, and conditions orf sale then, inl eff~c~t and pub-
lished in the manner described herein. Each~ mmcnber of thl~e Indlcustry
shall have the right, individually, to publish new prices, termlls, and
conditions of sale, from time to time, as herein provided.

The following practices constitute unfair methods of competition
for members of the Inmduustry- anld are prohibited.
SECTION 1. False Marking or Branding: False mazrkingr or brand-
ing of anly product of thle Industr~y which has the tende~ncy to mislead
or deceive customers or prospective cu~stomers,, whether as to th
gr;~41ade, quality, quantiy substance, character, nature, origin, size,
fnhor preparation ofany product of th~e Industry, or otherw~ise.
SECTION 2. Misrepresentation or ]False or M~isleading Ad ver rising :
1Making, causing, or knowingly p~ermittinlg to be! malde or published
any false, materially inaBccuralte, or deceptive statements by wany of
advertisement or otherwise, whether concerning the grade, qualityy,
quiantity sub~stance, character, nature, origin, size, fims~h, or pr~epa-
ration of any product of the I~ndustry, or the credit, ter~ms. values,
policies, or services of any member of the Industry, or ortherw~ise,
having the tem~lency! or to nilislendc or deceivJe cus~tomer1s or
prospective customners.
S~CnowI, 3. CommerI'Icial Bribery: Griving~r, pe~rmitting to be g1\Iven
or directly offering to ,rivec, anyl3thing of valuec for the~ I1purpse of
influecnemgt or rew\\ar~ding the actionI of anly empl~loyee,! agenllt, or re~p-
resentative of another in relaltio~n to th~e bulsines~s of the employ~~er of
sulc.h employee, the prilc~ipal of nch ag njent, or the rein-esen;c~ltedl part,
w~ithou~t the k~lnwclegre of such1 employer,, pr~inc~ipal or pa;rty; pro-
vided, howenverI, that this shall no~t be cc-nstrudc~ to prohlib~it frece andl
gene"ra~l dli-tiutilioln of artic~les, counoln~ly~ usd for advertisii ng, except
so far as suich artic~les are actullly used for commeicrc.iarl bribery~, as
heicreinabo\o e defined.


SlECTIOx- 4. Interference with. Contractual Relations: Maliciously
inducing or attezmptingr to induce the breach. of an existing oral or
written contract between a competitor and hlis customer or source
of supply, or interfering with or obstructing the pe r ~for mlan ce of?
any such contractual duties or services.
SECTICON 5. Secret Rebates: Secretly paying or allowing rebates,
refunds, commissions, credits, or unearned discounts, whether in the
form of money or otherwise, or thte secret extension to certain
purchasers of special services, or privileges not extended~c to all
purchasers on like terms and conditions.
SECTION 6. Giving of Prizes, Premiums, Gifts, or Services: G~iv-
ing or offering to givre prizes, premiums, gifts, or services in connec-
tion. with the sale of products of the Thdustry or as an inducement
thereto, by an~y scheme~rlt which involves lottery, misrepresentation,
or fraud.
S~ECTION 7. Defamation: Defaming competitors by falsely im-
puting to them dishonorable conduct, inability- to perforrm contracts
questionable credit standing, or by other false representations or
by the false disparag~ementllt of the grade or quality of their good.-r.
SECTIO N 8. Threats of Litigation : Puxblishing or circulating
threats of suits for infringement of patents or trade marks or of
any other legal proceedings not in good faith, with the tenclrclry or
effect of harassing competitors or intimidating their cusltomers.~s
SECTION 9. Espionage of Competitors: Securing confidential in-
formation concerning the business of a competitor by a false or
misleadinlg statement or representation, by a false impersonation
of one in authority, by bribery, or by any other unfair method.
SECTION 10. Selling or offering to sell at variance from filed
price lists: Selling or offering to sell at prices different from prices
filed with the Code Authority as provided in Article VII, Section 3.
SECTION 11. Selling Below Cost: No member of the Industry
shall sell products at less than the cost to the seller as determined
on the basis of the principles outlined in the standard cost- account-
ing method stipulated in A~rticle VIII, Section 1, above, with such.
restrictions or adjustments as are indicated in the Cost Fiormula
to be prescribed byT the Code Authority and approved by the
Administrator; pro-vided, however, that sales below cost shall be
permitted to meet the lower price of a competitor whose price does
not violate the provisions of the Code, for products of equrirnlent
type, quality, and/or performance.
SECTION 12. Guarantees against Price Changes: Making or giving,
or offering to make or give guarantees or protection in any form
against changes in prices beyond a period of ~fifteen (15) days.

rSECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of Section 10 (b) of the Act, from time to time to cancel
or modify any order, approval, license, rule, or regulation issued
under Title I of said Alct and specifically, but without limitation,
to the right of thne President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.


SECTION 2. This Codae, except as to provrisionls required by th
A-ct, may be modified or supplemented on the basis of experience or
changes in c~ir~cumlltan ces, such modification. to be balsed~ upon. appli-
cation to the Administratorr and such notice anld hearing as he shall
specify, and to become effective on alpproval by the President.

No provision of this Code shall be so appliedc as to permit monop-
olies or monopohistic pracheices or to chimmate, oppre~tss, or dliscrinul-
nate against small enterprises.


Whereas t~he policy of the Acit to increase real purluslsingr power
will be made impossible of can unn ut lo~l~ln if prices of goo~lds and
services increase as rapidly as wages, it is recognized that price
increases should be delayed and that, when mlad'e, the samle should,
so far as reasonably possible, be limited to actual increases inr thce
seller's costs.

This Code shall become effective on the second Mionday after its
Approved Code No. 35i8.
Registry No. 1899--44.


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