NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
SU LPHO NATIED OI L
AS APPROVED ON JUNE 26, 1934
UNIV. OF FL LIS.
;.i E. OEPOSITORY
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents
Approved Code No. 469
Registry No. 699--16
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DISTRICT OFFICES OF THIE DEPARTMENT OF COMMERCE
Atlanta, Ga.:; 504 Post Office B~uilding.
Birmingham, A~la.: 257 Federal Building.
Boston, Mass. : 71901 Customhouse.
Buffalo, N.Y.: Chamnber of Commoere Buiilding.
Charleston, S.C.: Chamber of Commerce B3uilding.
Chiengo, Ill.: Suite 1706, 201 No~rthl Wells Street;.
Cleveclandl, Ohio: Chlambelcr of Commerce.
i Dallas~, Tex.: Chamberc~ of Commerce B~uildling.
Detroit, Mlichl.: 801 First National Bank Building.
Hoc~uston, Tlex.: Cliuhambe of Commerce B~uild~ing.
Indianapolis, Illd.: Chamber of Commerce B~uilding.
Jacksclnville, Fla.: ('Lamber of Commerce Building.
Kansas City, Al10.: 102~8 Haltimore Avktenue.
L~os Angeles, Calif.: 1163 South Brot~adway.
Llouisville, KSy. : 410h Federal Bailding.
Aletuphiis. Tenn.: 229 Fed~ernl Buildinig.
New Or'leans, La.: Room 22;5-A, Culstombhouse.
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Phliladlclphin.. Pa.: 422 Commaercia l Trust B~uildling.
Pifttl.burg1. Pa.: Chamber of ('onserve~'c' Bulildin~g.
Portlandcl Orog.: 215 NCewv Post Olfilrr Iuildling~.
St. Louis, Mo.: 3116 Olive St ren~lt.
San Fra~nncisco, Callif.: 310 Cutstomblouse.
Seattlr. W~ashl.: 809 Fe~dera:l Offiice `uildingr.
Approved Code No. 469
CODE OF FAcI[R COMPETITION
SULPHIONATED~I OIL MANUF~jACTUIRING INDUCSTRLY
As Approved on June 26, 1934
CO)DE OF FAIR COM1\PETITIOIN FOR THE SULPHIONATED OIL AfANUFACTUR-
An application having been duly made pursuant to and in full
comnplianlce with the provisions of Title I of the National Industrial
Recovetry Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Sulphnonated Oil Mlanulfnct urinb Industry,
and hear~ingrs having; been duly held thereon and the annexed report
on said Code, conltainingg findings with respect there~tto, having bee~rn
made and dlireclted to the Pre idetnt:
NOWV, THE3EREFiORE, on behalf of the President of the United
States, I, H-ugh S. Johnson, _Administrator for Industrial Rtecovery,
purunn toautorty estd i mebyEx-ecutive Orders of the Pres-
ident, including Executive Order N.04-,dtdDcme 0
1933, and otherwise; do he~r'eby incorporate by reference said annexed
report and do find that said ~Code complies in all respects wiith 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 uI-pprov~edl; provided, however, that
thle provisions of Sections 1 and 2 of Article VII be and they are
hereby stayed pending my further order.
HUGH S. JoHNson,
Ad~miinistrator for Indciustrial Recovery.
G1EORGE L. BERRY,
REPORT TO TIHE PRESfIDEINT
The W~hite House.
SmR: A ]Public Hear~ing on the Code of Fair Compe~tition for the
Sulpholnated Oils Mlanufacturing Industry, submlittedd by the Sulpho-
natedl Oil M~anufalcturerIs Association, Inc., was conducted in Wash-
ington on the 13th of Aipril, 1934, in accoj~trdace with thle provisions
of thle National Indulstrlal Recovery Act. This Associartio~n claims
to re~present sev-enty-eight (78%0) per cent of the dlollar sales volume
of the Indcustry.'
It is reognized that there ar'e a larger number of firmls which
may intermizttently manufacture sulphlonated oil prod~ucts but there
are? considelred to b~e essecntially about fifty bona fid~e members of the
Industry. Thle IndustryI r~eported that thle aIggrregate invested capi-
tal in 1998 nrmou~nted to $4.99~,5\26, and in 1933 thiis was increased
to $5,973,578. The ugrr(re(ae annual sales of production in 1928 is
p>rllurpoted to havre beenl $9,614,957, anld in 193.3 was $123.838.800. It
has been estimatedl that thie Indlustry employed slightly less thian
five hundcre~d emlployeesa in 1n'18 and slightly less than seven hundred
in 19i33 under the Presiden~rt'. Reemployment~lt Arerrement.
Thle produlcts of this indusry~l are used prmslar~ily as raw materials
in somelc of our ba~ic Inmdurstries, such as thet Tanllningr Ind~ustryI,
Texrtile Indu~stry', Glue Industryl, Paiper Indurstryr, Pr~inting Inks
Ind3ustry' ]Lubrientingi Inldustry and to a certain exitent in agricul-
tura~l supplies and~ simnilar1 allied Indcust~ries.
Thiis Cloale specifies, withl certain exceptions, a basic w\orke week of
forit~y hoursI' and a limiitatio~n of eight hours pe~r day. 'There is a
similar provicionr for c!~~l ret and office emp~loyeesc w\ithI theI ullow-
ance of onec fortyr-eight hou,;r w"~eek in any onie usan~lth perlic.,l.
'Ihlr 1'Y are eceple.I~ froni the( ha:Stel for~ty hour11 week;li (rI1lIloyee~S
sion of timle and~l one-hlalf for all hoursI' w\orkedC~ inl (xcSr''i of for~t
hours per week~'1 and e~iigt houlri per' day. There~c aret nl-I, ecep~clte
empllloyees wiho rece~ive thirty-five lol~lars or Irm~,re p~er week. sunx
11108 Of fillriV-fo llP 11Iic ker per Wee(1 is ot:1)llil l let) forl (1II.li' r lireC-
WO\cRll R Il;IilXllll~ll Of fift\.-SiX Il~Idl'J P(Elr We c'l, W101 ulle shvl o11.~ f re~.st
may bre allowed~ll to wo\rkll in eceslslr- of theP ba~sic. f~~t ryhorkek
with th payment of time and one-half for all hours worked in excess
Thle Code establishes a minimulm wage of fortyv-five cents which
applies only to conulnon labor or totally unskilled labor. M~inimnum
wv9age rates in1 effect on Marchn 15, 19f34, highler that those sp-ec~ified in
the Code. shall not be reduced. Female employees shanll receive the
samle rates of payg as male employees when they .displace manle em-
ployees. Cleric~al and office employees have a Iminimumn wage rate of
fifteen dollars p~er week. Office boys and girls shall be paid not less
than eigh~ty per cent of such minimum wagre, withl the\ exception that
such claSs of employees shall not ecreed five per cent of the total
number of office employees irn any one plant.
There shall be an eqcuitable adjustment in all pay sc-hedlules above
the minimumln within thirty days after thie effective date by any
employer who has not heretofore made such adjustments.
ECONOMIC EFFECTS OF THE COIDE
The. Code reduces wrorkling hours about twventy-lthree per cent be~low
those of 1929 and increases minimum wage rates at least p~roporl-
tionately. Practically all the factory w-orker~s are mlales,. most of
whom are semi-skilledi or skiilled. An increase of fourteen per cent
in such wagvee~arners was shown fromt June, 1933, and a further
increase of abo~ut. eighiteen p~r~cent unlder the Pr~esident's Re~employ-
mnent Agreement. A~n Ilnusuallll increase in office empllloyEees was also
MIinimlumn wage rates w-ere increased unlder the President's Reem-
ploymlent Agreement so that desp~ite the shorltenedl wo~.rkingr hours,
minimum weekly eani-nngs were noticeably highler than the lowes~t
noted in June, 19L90.
Since the TIndusctry3 is generally opera~ting under the forty hou~rl
weetk, furtl'her' increase in eployme~~r~tnt will be detpendel~nt on increased
The Deputy Administrator in his final report to me on said Code
hav-ing foulnd as herein set forth and on the basis of all of the
proceedings in this matter:
I find that:
(a) Said Code is well designed to promote the policies and
purposes of Title I of the Natio~nni Indutstrial Recovsery Aqct. includ-
.ing removal of obstructions to the freet flow of inlter-state, andc folreignl
commerce wh~ich) tend to dimninisih the amount thereof and wiill pro-
vide. for thie general wFelfare by promojting the organization of
industry for the purpose of cooperative action among thne trad'e
groups, by inducing and mnaintaining~ united action of labor and~1
mnanagemlent. under adequate goveiinErnmel nt l sctio-nsc and Supe)rv.iisio,
byr elim in t i ng uIn fai; r com petitive pr~n tices, by promoting the fullest
possible utilization of the present productive capacity of indl~ustr~ies,
by avoidingr undue restriction of pr~oduction exceptt as may be tem-
porarily required), by increasing the consumption of induitr~ial and
agricultural products through increasing purchasing power, by
reducing and relieving unemploy-mentl by improving standards of
labor, and by ot~herw~ise rechabilit~atingr Industry.
(b) Said Industry normally employs not more than 50,000
emnployees; an is not classified byv me as a major industry.
(c) The Code as approved complies in all respects wIith the per-
tinentf provisions of said Title of said Act, including wTithout Ilm-
tation Subsect~ion (a) of Section 3, Suibsection (a) of Section 7, and
Suibsection (b) of Section 10 ther~eof unid thant the applicant asso-
ciation is an mndustr~ial association tru y repiresentative of the rafore-
said industryd;; and that said association imposes no inequitable
restrictions on admission to mnembershiip the~emn.
(d) The Code is not designed to and wfill not permlit monopolies
or monopolis-tic p~ractices.
(e) The Code Is not designed to anid will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of thne economic process have not
b.Keen deprived of thre right to be head prior to appyroval of said
For these r~easions, this Code. of Fair Comp~etition for the Sul-
phonated Oils M~anufalcturing Industry Ihas been approved.
IIUGH S. JOHNSON,
JUNEi 26, 1984d.
CODE OF FAIR COMPETIT`IONJ FOR TH[E SUJLPHONATPIEDI
OILS M/ANUJF`AGCTUIRING INDU)TSTRi;Y
To effect the policies of Title I of the National Indulstr~ial Recov\-
ery Act, this Code is established as a Code of Fair Compe~cttition for
the Sulp~honated Oils Mafnufac~turing Ind-ustry, and its prov~\isionls
shall be thle standards of fair competition for such industry and
shall be binding upon every member t~hereof.
ARTICLE II EFINTITION;S
SEC'TION 1. The term Sulphonated Oils Manufactuaring Indus-
try means and incl-udes the manufacture of the product or products
resultant, from the reaction between a saponifiable oil or fat or its
fatty acids, or a mixture of saponifiable oils or fats or thleir fatty
acids, and sulphluric acid or similar sulphonating agent, as a result
of which. some or all of th~e oil is co.nver1tedl into a sullphante.
SECTION 2. 'fThe termn Member of the Industry mea~zns and in-
cludes, but without limitation, any niiul atesiascn
tion, corporation, or other form of enterprises eangaed~in, theIndus-
try, either as an emplloyer or on his or its owpn behalf. eInus
SECTION 3. Tlhe term "L Emnployee as used herein includes any and
allj npersnsc ngaged in the Industry, however compensated, except a
member fY the TInustr~y.
SEC'TION 4. The term Employer as used herein inlllcudes anyone
by whom1 such employee is compensated or employed.
SEC'TION 5. The terms "L President ", "'Act "', and "Administrator "
as used herein m~ean respcc-tivcly the President of the United States,
Title I of the National Industrial Recovery Act, and the Adminis-
trator for Indusitrial Recovery.
ARTICLE I[II- OURS
SECTION 1. No employee shall be perm~ittedl to work in excess of
forty (40) hours mn any one (1) werek or eight (8) hours in any
twenty~-four (24) hour pi-eriod~, except as hlerein otherw~nise provided.
HOURSJ FOR CLERIICAL AND OFFICE EMPLOEES
SEC~TION 2. No person emplloy'ed in clerical or office work: shall be
permitted to work in excessi of forty (40) hours in any onre (1i)
week, except that during any one (1) week in a one (1) month~ period
such~ employee may be permitted to work; a mnaximum of forty-eight
(48) hours in any such wee;. AL normal w~~ork: daLy shall not exceed
e'igld. (8) hours.
SEcTIrON 3. NO employee shall be permitted to work more than six
(6) days in any seven (7) dayS period.
I-.MPLOYSTEMli~ NT BY SEVERAL EMPLIOYERSj
SCEcr.ToN 4. No employ,~e r shall knowixngly permlit any employee to
workr for any\ time which whvben totaledt with that alr~eadyv performed
with alnother~l employer or emlployers exceeds the mlaximum permitted
EXC'EIYTTONS AS TO HOUR
SCecTmc N 5. The limitation as to hours of labor as specified in
Sc~~tions 1, 2 and 3 of this Article III shall not apply to thle follow-
(a) Em~ployees engagedl in emergency meaintenarice, or emergecncy
repnar work involving breakdown or protection of life or p~ropDert
prov~ided, that in sulch special cases not less than one and one-halh
(1%/) times the normal wange rate for any employee so employed shall
be pidl for all hour~~ls wo~rrked in exscess of wrc~ty (40) hours in any
week, or eight (8) hours in. any day.
(b) Oultsidetr sales or sales service men, or to persons employed inl
a. ma~lnager~ia, ec~cutiv~e, supervisory or technical capacity (not to
include ski iil~led op~er;t i ng labor or non -professi onally tra ined labora-
tory avor~Ikers) who receive $35.00 per weekjl or more.
(c) Engi~neer, fremencn shippingr clerks and truckmen engaged in
outside dlelivery1~ alnd pick~-up service, who maly be employed up to a
mn xiniulm of forty-foulr (44) hours !in any w-eek.
(d) Wa~ltchmelln, wh~o maiy be p~ermittedc to; work; not exceeding
fifty-isi (56~) hourllS in any clne (1) weerk pleridc.; providedl, that~ such
empl'loytee shall ha~ve at h-a~st. one (1) day's recst.in echll seven (7)
(e) Thle limitation as to ma xsimlum hourii of w~orkl shall not apply to
"""ry special cases where restr~lictlio of hoursI.- of laborr of killedel
prodctio heeuse f samans ineren andpecliarl within. th~e
p,'(lrn-a-; itself ; In-m \'iled, however, thalt such (niployees(..- in such spc~l~ial
I;.-n.-es sha~1 llnt hie p~erm'it dl ed toc~ work more than forr~ty-eighlt (48)
horlsl in a~n! one (1) wook1. nod~ pr~ovidedr that in i;uchl special cases
aIt least onlc alndl tne-half t inles the Inormall wager rnto shall be paid
to any empllloyee~ .Co emp~~!rloe forI Iimuir wolrkedlt above- forty (40)
houlr., inl ;;l v wee or eight (rr) hourlls in any~? day.3
(f) D~urine~ any pier~iod! in wh~ic'h a1 r(lcnceflntrate demandtll shanll
1Ile<*'( RXI \I11081181 nnd f'lillpOrary ],ifienc1 Or to, 1000('C SetSlnall peak
"'llllc'lll(m)nt batchl p""r~cessor niny13 be3 prmrittrd to wocrk not mnore
than for~ty-ceilgt (48) iourli in anyl week andl not 11w(rc than eight
(8) houirs in anyI\ one (1) day, ux nolt miore than sir (1;) weeks in any
six (G) months~iiJI' p.irinl; proIdedI1C11 thal nlot less than tiriue and one-
half thes normal rate shall be paid to aniy e~mployee so employed for
hours worked above forty (40) hours in any wFeek: or eight (8) hours
in any day.
AnuTcLE 17- GE
SECTION 1. NO employee shall be paid less than at the rate of
forty-five (45 Thisminmumshal aply to common labor orr totally unsh~illed
Tabor Otheru chlaseso labor, including piece workers, shall be
compensated at rates above this miinimum.,
Minimum wage~rts which were in effect in the Indust~ry on lIfarch 15,
19)34. which weret above the mninimuml specified herein above shall in
no case be reduced.
CLERICAL AND OFFICE EMPLOYEES
SCTION~ 9. nO aCCOntllync Clerital Or Oflece employee shall be paid
les than at the rate of fifteen ($15.00) drollarls per weekl~; providred,
however, that office boys and girls maya be paid at a rate not less than
80%0 of such minimum, and provided, further, that the number of
such boys and girls so paid shall constitute: not more than 5%0 of t~he
tota number olf office employees of ary1 one employer; but in any
case each employer shall be entitled to at least. twto (2) suchl employees.
PIECEWVORKC COMrPENS ATJO-lr~ION-MINIMU WACES
SECTIONS 3. Tphis article establishles a minimum~ rate of pay which
shall apply, irrespective of whether an. employee is actually compen1-
sated on a time :rate, piecew~ork;, or other basis.
FEAIX EM PLOYE~ES
SECTION4.F~emale employ-ee~s performling substantially the same
work as male employees shall receive the same rate of pay as male
employees, and w~hen they d~isplae male employees they shall receive
the same rate of earnings as the men they displace.
The Code Aluthlority shall, within rnmety (90) days after the
effective, date of t~his Code, file with the Administrator a description.
of all occupations in. the Inrdustry in which both men andl women
WAGES ABOVE TH~E M\INIMUMI7
SECTION 5. Equitable adjustments above the minimum in al pay
schedules of employees shall be made within thirty (30) days after
the effective date of this Code b~y any employer who has no here~-
tofore made such adjustments under the Act. In nro evet, however,
shall hourly rate be rueduce. Within sixt (60) days after the
effective date of this Code, each mlemlber of this Industry shall mak~te
a reor of such adjustments (whether md~e, prior tor or subsequent
to daste of approval of this Code) to the Code Authority.
SEC'TION 6. A person whvlose earnings capacity is limited because
of age, physical or mleltal2 handicap, or their r infirmaity, mlay be
employed on light wPork~ at a wage below the mninimumn established
by this Codec, if the employer clbtainls from the"State Authority,
designated by the United Statesi Depa11rtmet of L~abor, a certificate
authorizling suChlrl p-erson's employment at such wages andl for such
hours as shall be s-ta;ted~ in. the certificate. Such authority shall be
guided~( by the instructions of thle U~nited States Department. of Labor
inisuigcer~tifientes to such~ p~er~sons. ]Each. emnployer shall file
monthly with the Code Authority a list of all such persons emnployved
by him, showning the wage~s paidl to, and the mlaximu ml hours of
work for such elsupkyees.~
PAYMENT OF WAGES
SE(.TTION 7. An. emnplo yer shall make paymlent of all wages in
lawful curr1ency, or by negotiable chelcck .therefor, payable on dle-
mand. These wages shall be exempt from, any paymen'~ts for
pensions, insurance or sicks benefits other than those ~voluntarily
nuthc-r~izedl to be paid by the wage earn~lers or required by the State.
L~aws. Pay pecriolds for wages shall be at least semi-mnonthly and
for salar11ies at least once in each. month. Emlploy~ers shall agree
not to withhloldl wages except as otherwise providled by law.
.ARTICLrE V-GENEPRAL LABOR AND OTHER PROVISIONS
SECTIOlN i. NO personi udritl isiteen (16) years of age shall be
employed in the Industr~y. No person ulnderl eihteen (18) years
of aIge shall be emplloyedr at opet1raticons or occu~patio~ns which are
h~azardcous in nature or alnagerous to health. The Cod~'e Aulthority
shall submiiit to the Ashininiist rator within sixty (60) days a after
the app~roval of this Code a list of iuch~ opera~tion~s or' orccupations.
In anyr State anr emplloyrvcl shall be deemedlt~t to havl\e complied with
this prov,~ision as to age if he! shall ha~ve on file a rcertificate or permit
duly sigrnedc by- the Au~th~ority' in such1 State emplowered~c to issue
employment or ageqt cert ifica~tes or pecrmnits sh~owing t hat, th~e: employee
is ofthe requir~edl age.
POISB,~IIONS FRoMi THIE ACT
SfEc.'lION 2. (a) Employeescc shall havl\e thle ri~ht tlo organize and
harg~lain coll ar t i vely throu, gh1 lc'repreen ta t lives of thir own iI cI~ choosing,
and -hanll be free fromii the interlfeltnren Icretranint. o coclreion of em~-
players of labor, or theirn agen~!ts, in th~e clesignation of such rep~re-
senltatives or in rl f-organizationl or inr othc r enneerted activities for
the pulrpo"se of cocllecctlve bargaSlinling or o~lther mutulll~ aidl or' pro-
(b) N\o emloyee~!''c andc no onre seekiing~ employmc? llnt shall be requiredc
a:, rcomtilflriolOf Illi1plocyment to aoll) anY coulTnVI: 11nloli or tO re-
frain from joining, organizing, or assisting a labor organization of
his own choosing, and
.(e) Employers shall comply: with the maximum hours of labor,
minnuum rates of pay, and other conditions of emplo~yemet approvled
or prescribed by thie President.
RECLAJSSIFIC'ATION OF EMPLOY-EES
SECTION 3. No emlploy~er shall reclalssify emplloyeesi or duties of oe-
cupations performed or engnge in any other sublter~fuge for the pur-
pose of defeating the purposes or pr~ovisions of the Act or of this
STANDARDS FO SAFETY ANDP HEA\LTHI
SETIN 4. Every emnployer shall make r~easonlablee provision for
the safety and health of his employees at the place and during thie
hours of their employment. Standards of safety and healthi for
each division. of the Indust~ry shall be submitted to the Adlminis-
trator by the Code Authority within six (6)S months after app~roval
of the Code.
SECIO 5eea as ~SClh. No p:rovisio~n in this Code shall su~perse~de any Stafte
or Fderl Lw wich imposes o~n emplyer more strignt r~equire-
ments as to age of employees, wa gesl, huso ok or as to safety',
health, sanitar~y or ge~neral workinglb conditions, or insurance or fire
protection, thann are imnposed by this Code.
SECTION 6. All emp~loy~ees sha~l l post alnd- k~tee psted copies" of this
Code or its labor provsionls in conspicuo~us places lc~c~essible to all
em~ployees. 'Every member of the Indcustry shall comllply w~it.hl all
rules and regulationss retlative to thle pocsting~ of provisions of iCodesl
of ]Fair Compettition which may from timec to time be prlescrib~ed by
DISMIISSAL FO)R COM3iPLAINTE
SECTION 7. No employees shall be di imi.-- edl by reason of makling an
comp~laint, or giving evidence with r~especlt to a vila~ltionl of tlis Co~de.
ARTICLE 71- rCSI;THAIZATION POW\EIS ANJD DITTESj OF THIE CO
ORGANIZATION AND CONN~TITITFION
SECTION 1. A4 Code Authority is h~ereby estabilishd to cooperatenf~
with the Adminlistrat~or jin th administration of th~i.; Code.
SwroTIO 2. The~P Code. Authority shanll cornsiist. ocf live 1(5) mem~berl
to be elected by thle members of the Indusl~tlry by a fa~ir me~tho~d of
election subject to the approval of thle Aidmini istra~tor, provided thatf
the members so elected are atpproved' by 51%r of the members of the
In~ndut~ry Irep-resenti;ng at least 8g6%% in w~eigh~t, of raw oils, fats,
and fatty acids actullRy submitted to the process of sulphonation
for the pr~eced~ing eigrhteen (18) calendar monts, w~ho are entitled
to vote. The term of office of thre memnber,r, of the Codle Authority
shall be for one (1) y'ear or until the election of their suc~ce~sors.
SCECT1IO N 3. In addition to the mnemb.er~s of the C7ode Authority
a~ove mentioned, the Adml~iniStratorC) may appoint. not more than
three (3) memblers to the Code A~uthor~ity without vote and without
compensation from the Industry.
SECrzox, 4. ~Nothing corntained~ in this Code shall constitute the
mecmber~s of the Code Authorc-rity partners for any purpose; nor shall
any mnemlber of the Code Authority be liable in any manner for
any act of any other mlemlberl, rlfic~er, agent, or emplloyee of the Code
Authzority; nor shall any member of the Code Auth~ority exercising
reasonablee dilige~nce in the co-nduict. of his duties hereunder, be liable
to anyone for any action or omnissionl to act under this Code, except
for hils own wilful mallfen:sance or no~nfeasance.
SEa'rI(ro 5. In ord~er that the Code Authority shall at all times be
truly representative of the Industry and in other respects comply
with the provisions of the Act, the Admninistatrato may prescribe
such hearmgs as he may deem procpe~r; and th~ereafter if he shall
find that the Code Author~ity is not truly representative or does not
in other respelcts comply with~ the provisions of the Act, may require
anl appropriate~ modificcation in the method of selection. andi comlposi-
tion. of the Code Au~ltho(rity.~
SECTION 6. If the Admiiinistrator shanll determline th-at any action
of the Codetl Authority or any agerncly thereof may be unfair or
unjilst or contrary to the public inlterest, th~e Administrator may
require tha~t~ s-uch action be suspended to afford an ocpportulnity for
an inve tigation of the merits of suchl aIctio~n and furth~ler considera-
tion by such1 Code A~uthority or ass-oney pIendingr final action which
shall noct be effective unless the Ad~tminis;trator approves or unless
he shall1 fail to disappro~ve after thir~ty (30!) <1nys' notice to him of
inltenltionl to prce~ed- with such. action in its original or mnodified forml.
PEOW\ER~S AND DUZTIES
SECTION 7. SublljeCt to such rules anld regullatiOns as mayr b issuled
by the Adin~llitratorf01, the Codte Author.rity. ihall haver the following
powe\(~r's and1 duties;, in, addition to th~ose author~ized1 b? other p~rovisionls
of thlis Codie.
(a) To insurle the excuctionl of the~ p~rovisjions~ of this Code and to
provide~ for the complinner-c of the I~ndustr~y w\ith thie provisions of
(b) To adocpt by-laws' and rules nM1( regulationss for its procedures.
(c) To ob'lta~in from members~(1' of thle TIIndStry such info~rmat~ion
and. re'ports as are requl'ired'- forl ther amntllirltra~tioni of the Codle. In
:Iddition to informalticl ioccn rired~t to her submiittedl to, the Code Au-
thority, inembelrcls of the Indullstr'y subljectf to thlis Code shiall furnishi
. ne-h ~t ?t i-tic ;I l fo~rmal~t ionl a the~ Ashnllin istra;tor~ may1 deemIl necessary
for the purposesL' reC!ited~ in Sc~tionl 3 (a) o~f thc Ac~t to such Federal
and tat agecie ashe my dsignte;proiided thatl notihingF in this
Cod :Iharll rliievel an be r o th I ndustrylli (151of anly exislingl Ibliga-
tions to furnish reports to any Government agency. No individual
report shall be disclosed to jany other member of the Industry or to
any other party except to such other Governm~ental agencies as mayg
be directed by the Admlinistrator.
(d) To use such trade association and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or r-espon'sibilities under this Code arnd that such trade
associations and agencies shall at all times be subject to anld comply
with the prov-isions hlereof.
(e) TIlo make recommendations to the Admninistrator for the coor-
dinat'ion of the administration of this Code and such other Codes, if
any, as may be related to or a tfect mlemb~ers of the Industry.
(f) 1. It being found nec~essaryv in order to support the admlinis-
tration of this Code and to mnain;tain the standards of fair compe-
tition established hiereunder and to effectua~te the policy of the Act,
the Code AuthorityT is aulthor~lized:
(a) To incur such reaso-nable obligationls as are necessary and
proper for the. fol~reoing purposes, and to mlee~t such obligations out
of funds whlichl may be rais;edl as herecinafter provided and whlich
shall be held in trust for the purposes of the Code;
(b) To sulbm-it to the At~dministratorI for this approval subject to
such notice and opportunity~ to be heardl as he many deem nece~ssry;
(1) an itemized budget of its estim-ated3 exp-ensesr for thle for~egoing
purposes; and (2) an equitable basis up~on which the funds necessary
to support such budget shall be contributedl by melmber~s of th~e
(c) After such budget anld basis of contributions have been ap-
proved by thle Admiinistrator, to determine andc obtain equitnable con-
t~ibution as above set fourth by all mlembers of the Indcustry, and to
that end, if nece~ssary, to institute legal p~roceedlings therefor in its
2. Each miember of the Industry shall plaY his or its equiitable con-
tribution to the expenses of the maiintenance of the C'ode Aulthor~ity,
determined as her~einabove providelcd, and subject to rules and re~gu-
lations pertainingr thereto issued by the Admlrinistrator. Only mem-
bers of the Industry complying witrCh the: Code and contrlibutin u to
thle expenses of its aldmlinis;tration as hereinabove provided sh1al be
entitled~ to participate in the selection of memnbers of the Clode Aun-
thority or to receive the b~enefits of ainy of its volunltary activities or
to make use of any' emb~lemn or insignia of the Na~tional Recolivery
.Admnii nist rat ionl.
3. The Code A-uthority shall neither inuri nor pay,~ anyr obligation
in excess of thle amnounte thereof as estimnated~ in its ap~provedl budget,
except uipon approval of the Admninistrato r;; and no( sublseq~uent
budget shall contain any deficiency itecm fo~r expenditures in excess
of prior b~udget estimates except those whlich~ the Admicniistrator! shall
have so approved.
(ga) To r~ecoummend to thle Admlninistr~ato r any action or measures
deemed adlvisable, including further fair trade practice rviost
govern members of the Industry in their relations w~itheach other
or with other Industr~ies; measures for industrial planning, and
stabilization of emiploymenit; and including modlifications of thiis
Code which shall' become effective as part heref upon approval by
thne A~dministr~ator after such notice and hiearinga as hle mnay specify.
(i) T'o appoint a, Tra~de Pr~actic~e Committee wrhich~ shall meet with
the T'rade Pra;c~tice Commnittees appointed under such other codes as
may be relatedl to thle Industry for the purpose of formulating fair
tradet practices to governI thle relatiolnships between emiployers under
this Code and under suc~h other Codles to the end that sulch fair trade
practices maly be prop~osed to thle ASdmninistrator as amendments to
this Code and such other Code~s.
SEenowO 8. EnehI trade. or industrial aIssociation directly or in-
directly! participate ing in the selection or activities of thle Code
Auth~ority shall (1) ulnpose no inequitable res~trictio~ns on member-
ship, and (2) submit to the Adicjnistrator true copies of its articles
of a~ss~oiationl, by-lawcs, regulaltions, and anly amendments when made
ther~et,, together with such other infolrmation as to mnembership,
organization, and nectivities.i as the Admlinistra~tor mnay deem necessary
to efflctua~tec th~e purpose of the Acet.
ARTICLE VII -FRICES AND TERMSY Or IPAYMLENT
,CenTolu 1. Price Lists.--The Code AulthorityT shall determine! what
are ccllnunonily known in the Industry as staple products of thle Indu~s-
tryr and ever~lyl m~t~)~embe of the Ilndustr~y within. thirty (301) days after
wrr~i tten no~t ifien:t ion of sulch cletemina nt ioni by the Clode Authority
shall file with thne Code ~Authority a list of the mlinimluml selling prices
and discounts and termlls and co~nditionls of sale of all of his or its
staple products, designating the brandt, name, numbller, letter, or any
other~l form used~ for the idetntific~ationl thereof. None of the selling
-prices~ andt discocunts aind termis and conditions of stale shiown in any
list filled by any member11' 1 of thne lIndu~stry, as hecreinl pr1ovided, shall
be changedt'~ eCept.)~ by thre filings by slc~h member with. therr Code
APuthorit~y of a nlew list of his or its selling prices and dtiscounrts andl
termlls andi c~on~itio~ns of sale, which shall become effective three (3)
day~s after the atett on whiCh1 suhit new prlice list and discoulnts anld
termsln and conditions of sale shall hanve been so filed. TIhe Codle
~Authnority shall ad rise the members~I~ ther~eof of the filing- of all pr~ic~e
lists, discounts, and terms and condlitio.ns of sale.
(a) 1Price lists shall1 be open for insprc-tion to all intere~sted~ parties
immediately upon being filed w\ithl the Cole Anlthlority.
(b) If at anly time, th~e Adm!inis~trator a1 fter a hearing shall findr
tha~t this open price aIr;ll, clrangmen is being uIsedc' for ther pulrpose of
prire fixing he ma~y in his clitscretio~n mod~cif and/or amen~3d, sus~enid
it olpera:tion, or de~clare it permannentlyg iinoperative.
dusltryS. shall1 se.ll or offert. for sale any stnp~le ~roduct. except products
whlichl are sakI~. for expor~lt, at at p,rie lowercl or at a dliscounllt or terms
anid cornditionsl of sale mlore favocrable, to thle plr)urcaer thlan thle
pr'icec, c1i.-cou~lnt. termsl or condncitiolS of sale speccified in t.he list filedl
1Lv Suc~h membell)(r of thne IndustIry inl accollr lace withn thle foregoinlg
Re):.I'(no 3, )l. Maimum.l~ Caskc D~jeount.-Af, dlisc;ount for` cashl muy
be :ilowed~~ not in xcesc~~s of one (10-) pe(~r cent.
Se*** paragrasph 2 of ordler apprawhl\iL thil (0cl .
Arnoon VIII--UNnrm PRACncEs
The following described acts shall constitute unfair practices and
(a) Kn~owingly selling thie products of the Industr to any dis-
tributor, dealer, or consumer of a, quality substantially lower thanl
that previously purchased by such consumer without informing such
distributor, dealer or consumers of the difference, or allebged differ-
ence, in quality.
(b) Givinzg, permmitting to> be given, or offering to givo any thing
of value for the purpose of inlecn orrwring theacono
any employee, agent, or representative of another in relation to the
business of the ~employer of such. emnployee, the principal of such
agent, or the represented party, without the knowledge of such em-
play~er, principal or party. This prov-ision shall not be construed
to prohibit free and generalt distribution of ar~tic~les commllonly used
for advertising except so far as such articles are actually used for
commercial bribery as hereinabovre defined.
(c) Procuiring by fraud, misrepresentation, or other unfair means,
any information concerning the business of suich member which is
prope~rly regarded by it as a trade secret or confidetntial wit.hin its
organization, other t6han information relating to a violation of any
provisions of the Code.
(d) Imitating, or simulating any design, stylec, m~ark or brand
used by any' other member of the IndustryT for the pu~rpose of deceiv-
ing customers or prospective customers.
(e) Knowvingly using or'substituting n aeil usatal
superior or infer'ior inr quality to that specified by the p~urch~aser o
(f r utSecr~et~ly offering- or making any ay~mlent or allowannce of a
rebate, refund, commission credlit, unearnel disc~Lounlt or excess allow-
ance, whether in the form of money or otherwise, nor shall a. member
of the Industry secretly offer or extend to any customer any special
servlc~e or privilfege no~t extendled to all cuslltom-er~s of the same class,
for the pulrDpos of influencing a sale.
(g) Dissemninating, pub~lishing, or circulating anyq false or mnis-
leading information re~lative to any product or prices for any~ product
of any membepr of the~ Indulstry,~ or1 the credtl;~ standlingr or ablity of
any member of the Indutry~tlS, or thne condlit~ions or manlufactur e or
producftion of any product, or the cond~itionis of employmentn amlong
the emp~loyvees of any member thereof.
(h) WVilfully indlucing or aIttempting6 to inuc-lce t-he breach of ex-
i.;ing contracts bet ween comnpet~itoris andl their customers by any! failse
or deceptive means, or inte~rfere with or obstruct the perfor~mance
~of any such contractual dulties or services by) alny such means, with
the purpose andl efftect of hampering, injuring, or em~nb;;larasing~ com-
p~et~itor~s in their bulsinezss.
(i) 1\faking or griving to any purchaser of any p~roduct any guar-
antee or protection in any forml against decline; in the market price
of such product.
(j) Knlowingly wcvithholdingr from~n or inserting in any quootation
or involce any statermenlt. that. mankes it inaccurate .in a~ny material
tIrIIVERSITy Y F FR ORIDA
112 3 '1262 08853 8102
(kr) Making any sale or contract of sale of any product under any
description whichn does not fully describe such product in terms cus-
tomarily us~ed in the Industry, excepting products sold under brand
(1) M~akingr any allowance in, the form of purchase or otherwise
for the return of any c~ontainer in excess of the amount charged
the~retfo andt which. amount shall have been separately stated upon
(m) The ma~kingL, of false statementsts or reports, written or oral,
required pursulant to any of the! provisions of this Code.
-(n) Publlish~ing: or c~i~rulatingr unjust~ified or unwarranted threats
of legnIl proccdingr s which tendf to or have the effect of harassing
compettitors or intimidatinlg their customers. Failure to prosecute
in due coursle shall be evidetnc~e that any such threat. is unwarranted
SECTION. 1. This Code and all the prov-,~isions thereof are expressly
made subject to the right of the ]Presidlent., in necordance with the
provisions of subse,?ctionl (b) of SeCtionl 10, of thle National Industrial
Recovery Ahct, from timelr to time to canncel or modify any order,
approval, license, rule, or regulation, issuedl under Tit~le I of said
Act, and~ specifically but without limitatio-n to the right of th~e Pres-
ident to cancel or modify his ap~prova"l of this Code or any conditions
imposed by himn upon his alpproval1~ ther~eof.
SunoT(.S 2. Any member of thre Indlustry may propose an amend-
Inentn to this Code. Each amnendlment so proposed shall be sub-
mittedl to a miee~tinig of the Code Authlority and if the Code Au-
thority shall approve ther~ecif the amendmentn so proposed shall
be submlittedtl to membersWl'c of t~he Indusltry eligible to vote. If a
majority of the members~P- o-f the? Indusit~ry eligible t~o vote, repre-
se~nting a m~ajority- ini w~eight of' rawi oils, fats and fatty acids ac-
tually submitted to the proccess of sulphlolnation as shown by the
record~s of the Incdustry for the pr1ec~edingr eigh)teen (18) calendar
months shall vote in favor of the adoption of su~ch amendment,
suich amllendmentli shall, be3 submnitted by the Code Auithorityv to the
Admninistratrcll for his alpproval and/or for such othler action as the
Admllinistrator mnay desire andt shall become effective upon the ap-
preval of thre Admlilinistrato r. Nothing in this provlision shall
deprIi\e the Administrtrato fr~om initiatingr such amendments as he
is noithor~izedc to make by the National Indlustr~ial Recover'y Act.
No provisions of this Codle shall be so applied as to permit monop-
ailirs or~i monolpolistic pranctices, or to e~liminaite, oppress or dis-
Crunilf nate aainst smallll enlterplrises.
A\lnncI.E XI[-EFFEC'TIVE DATE
Th'is~ Code sha-ll hwromei effecctiv-e on thie second Monday after
its apprroval by the Prescidecnt.