Code of fair competition for the chemical manufacturing industry as approved on February 10, 1934 by President Roosevelt


Material Information

Code of fair competition for the chemical manufacturing industry as approved on February 10, 1934 by President Roosevelt
Portion of title:
Chemical manufacturing industry
Physical Description:
p. 393-401 : ; 24 cm.
United States -- National Recovery Administration
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Chemical 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. 699-1-11."
General Note:
"Approved Code No. 275."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004942755
oclc - 654840931
System ID:

Full Text








1. xeulve Order
2. Letter of Transmittal
3. Code


For sale by the Superintendent of Documents, W'ashington, D.C. - Price 5 centi

Approved Code No. 275

Registry No. 699--1--1

This publication is for sale by h ueitneto ouetGvrmn
Pritin Ofic, W.-,inton D..,andi by district o~fFirc, of the Bgur~eau of F~oreign
and Domestic Commerce.
Atlanta, Ga.: 504 Post Office Enibling~.
Birmingham, Ala.,: 257~ Federal IMlildinlg
Boston, Ma.-~.: 1801 Customnhouse.
Bllffnlo-. N.Y'.: Chamber of CIommnerce B~iblling~
Chlarlesto~n, RC(.: Chamber of Commerce Unilding~.
Chicago, Ill.: Xuit~e 170*\1, 201 North Wells St ree~t.
Cleveland, Ohio: Chamber of Commerce.
Dallas, T~ex.: Chamber of Commerce Bib~linec.
Detroit, Mlichl.: 01 F~irs~t National: Bank Building.
Houston, Tex.: Chamber of Commerce Building.

Jackl-onv~ille, Ftlat.: Chamber of Commerce Unlildling.
Kansas City, 110r.: 1028 Baltimnore Avenue.
Los Angeles, Calif.: 1163 South. Broadwary.
Louisville, Kry.: 408 Federanl Buildling
M.-mphl~li-, Tenn.: "-M Federal Bullj~ildig.

New Orleans, La.: Room 225-A~, Custonhou~se.
Newrc Yorki, N.Y.: '734 Custombous(, iie.
Norfolkr, Va.: -1(06 East Plume Street.
Phiburc~llelhi:1, Pa.: 422~ Commercial Trust Building.
Pitt-)burgh~, Pa.: Chamnber of Commerce~ Buildling.

San Francisco, Calif.: 310 Customuhouse.
Sent~ille. VWash.: 500!` Federal Office Building..

Approved Code No. 275



As Approved on ]February 10, 1934


An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the N~ational Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code of
Fair Competition for the Chemnical. Manufacturing Industry~, and
hearings having been held thereon and the Administrator having
rendered his report containing an analysis of the said Code of Fair
Competition together with his recommendations and findings with
respect thereto, and thze Administrator having found that the said
Code of Fair Competition complies in all respects with the pertinent
provisions of Title I of said Act, and that the requirements of clauses
(1) anzd (2) of subsection (a) of Section 3 of the said Act have been
NOW, THIEIREFORE, I, Frankrlin D). Roosevelt, President of the
United States, pursuant to the authority vested in mze by Title I of
the National Industrial Recover~y Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator, and do order that the said Code of
Fair -Competition be, and it is hereby, approved.
Approval recommended:
HIUGH S. JoH1\son,
February 10, 1984.
39361 0---376-50---34 (393)


The Wthite Htouse.
Smn: This is a report of the hea ring on the Code of Fair Compet~it~ion
for the Cher~nica hl Ma~nufcturingr Industry conducted in Washingt.on
on the 14thi of Septemlber, 1933, in accordance wyit~h the provisions of
the! National Industrial Recovery Act.
TZhe Chemical Mafln~fac~turingj IndulstryS in its variousd branches and
subdivisions is one whose welfare is very closely int~erlockied vith
that of our country. WV~e rely- Ipo~n it to k~eep abreast of the world in
dleve~lopment of new agents of Naltionlal Defcnse. and we look to it to
produce themii in quantlfi ty in time of need. Its Inh~oraltories and fac-
tories supply- us with the chemiical and bacter~iolog~icalT aids for in-
creasingr the standarrds of our public health. In the panst thec chemical
industry has accepted this burden andl, I~belierve, pe~rformed-''- its dutie
in an hocncst fashlion.
~No osrganIiza1t ion including all of th~e indu~rstr ex3 ist ed in June of 1933.
The Chcrmic~al Aliance, Incor!poranted, an outgrowth of the w-ar or-
gn niza t ion of the~ i nduist ry, was formedl for the purpose of caryin ou
thne pur~po-ses of the NaStional- Industrial Recovery Act. This new
organization which rep~resents a substantial maijo~itiy of the industry
has pres~ented andi fostered theiri code.
The prod!c~ts of the industry covecr a very broad field ralnging from
serurnsr for use on humans and animals through fine chemicals and
explscivcs to heavy industrial chemlicals such as sulphiuric acid. In
nealrly the wvhole :range purity- is a maltter of the g~reatest importance
not. only to the quarlit~y of the final product but also to the safety of
the maketrs an consumencr s. Careifully tra;inerd emr~ploy-ees with a w-ell-
developed~ sense of res~~po~ns ibility- arel~ essential in Ilnian phases and
the! rule in mnost phases of the industry. As a, consequelncel it is an
indutry~t' wh.lichl as a whole, has been fair to, its emplIloyeesc and praLcti-
ca~lly- free fromt ther acculsations and troubhles of others.~.
Thle scale of wagcs pnaid in the indusltry ll has ben re~lativelyv high
as is evidenced by the :fact that thle oerauge hourly rates fell from
57.2#i per'! hour in 1929 only to 50).3~ per hour inr June of 19.33, a decline
much less than th inlcreasc mn pur~cha~sing power, and less thann th~t
of mnost otherI indusltr~ies. It, is beievedcc thcat the inl~crase iin wages
hcl brougt abou~it by thet code wYill restore t~hem to thle 1920 level or bet ter.
The mnaxinmum hours of labor provided in the clod p~rob~nbly- wil
Ireult in an a~lerase of bctwenci 40 and 42 h~ours~ per wecek. This
Icreults even ubt thlc exiisting~ ra;te of operal:tion mn an mecreacse of fromt
7 to 10 percent" 1 in. the number11h~I of en1 ,Ipluy ees. W~i th~ i n creasi ng a ct i v ity
of indutry1(13 thle need for new\\ employees.- will be evecn grrreatel.
E~ven tle! vohanltur:y adot~ptionsl of h rvsoso hscl ymn

appj(lion tion of the cuod to all units in theI1 irlsy w111;1- aill inrrlcrase payl rolls


T'he D~ivision Administrator in his final report to me on said Code
having found as herein set; forth and on the basis of all the proceedings
mn this matter;
I find that:
(a) Saida Code is well designed to promote the policies and purposes
of Title I of the National Industrial Recovery Act, including removal
of obstructions to the free flow of interstate and foreign commerce
which tend to diminish the amount thereof and will provide for the
generall welfare by promoting the organization of industry for the
purpose of cooperative action among the trade groups, by inducing
and maintaining united action of labor and management Timder
adequate gov-ernmental sanctions and supervision, by eliminating
unfair comlpetitive practices, by promoting the fullest possible utili-
saltion of the present productive capacity of industries, by avoiding
undue restriction of production (except as may be temporarily re-
quired), by increasing the consumption of industrial and agricultural
products through increasing purchasing power, by reducing and re-
leving unemployment, by improving standards of labor, and by
otherwise rehabilitating industry.
(b) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limlitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
sect~ion (b) of Section 10 thereof ; and that the applicants association
is an industrial association truly representative of the aforecsnid
Industry ; and that said alssocin tion imposes no inequitable restrictions
on admission to membership therein.
(c) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(d) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(e) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
It is recommended, therefore, that this Code be immediately
FEBRUARY 10, 1934.


To ceffect~uate the po~licy'3 of Ti~tle I of the National Industrial RBec~ov-
ery Act,. thec follow~ingr pr~ovisions are established as a Code of Fair
Comllpetition folr the Che~mical Mianufacturing Industry.

(a) The term "Presi;dent"' as usedt herein mlealns the Prepsident of
the United States.
(b) TChe term! '"Administra\to~r" as used h~ereinl means the duly
a7ppointed Irepresenrtalf~tiv of the Pres!idetnt to ldminister the Natlional
I[ndulstr~ial Reco-very Act.
(c) The term "Cdhemnical Indulstry as used helrein and covered byv
this Code, shall be4 def~ined to meaC~n the production and sale by the
prod'-11u cer of heavy, indiustrial, and fi n c hemicals, alnd their by prod uc ts,
unless separate codes~ not supplem~entary to this Code are submitted
by any dlivicion or sub~div-ision of this Indulstry and approv-ed by the
Pre~idr n t .
(d) The terml "Alliance" as ulsed herein mencls The. Chemnical
A~llialnc~e, Inc., a nonprofitt sharing corporation organized and existing
underu thne 1la.s of thne Sta~te of
(e) Thei terml "emplo~ye~es" asi used heretinl mlea~ns all persons
employlrSed in a~ny phase~c of the Chemientl Industry co.verecd by this Code.
(f) TCh~e termn "effective e dalte", as ulsedl herein, meacns the~ tenth day
after this Code hras bee-rln pproved~ by the Pr~esident of the UiniteA

On andl afterl ~lthe effective date, no person, inclrudingf nerounting,
rler!i(;l, ofince a-nd s;lr( emplloyeS~cc,(1~, employd w.ithin theC ChlemcllC t
Industry shall be per~mittedt to work1 mlore? than an. avercrge of frorty
hou~lr- per~ weekl during anly period of foui~r months~ nor moreI' than
forty-eight, hoursll' durling anny week1~1, but such limnitatlionl shall not
apply? to:
(a) .Any person tmployedS~'t in. an excutive,;\ ( administration, Iuper-
\.isory'3 and/or technricatl (not to include sk~illedl operating labor nor

(b)An pema eminad s eparm n, engi n er, el ctir~i ci an,
louderl' tr~uck cr~iver, 1~lrc~lea or watchman; providedc~ that, no p~erson
spc~cified~ in thlis subpu;raraphrlll (b) shatll be peIrmit led~ to workl'f dulriingr
any 111000 1110111 11 perim1 B~lure mc ill:1; 811 n\ll ernge of folrt y-folif flurs

(c) Th1Iose! departne-nts IlllS or diVisionsl of thE `Chem~lical TIndustry' in~

1'C(flilifllelliet fOr produC)IlOC1II II,11Sri~ (lel)~~l dpatentS Or liv.isions,


ex~ept that in su~ch cases no employee shall be p~ermmit~ted to workl
during any three months' period more than an avera:ge of forty-four
hours per week nor more than, fort.v-e~igh~t hour:,1s in any oI n~e wee.
(dl) Employees engaged on continuous ogerantio~n at places where
adequate, supply of quanlified labor is not avadal~ble andc cannot reacon-
ably be ma~de available and where restriction of hours of such em-
ployees would unavoidably reduce production. In such cases the
average weekly hours may not be; inl tecess of forty-e~ighlt hours per
week and at the enzd of each calendar mlonthl any such employer in
the Chemlical Indu~st~ry shall report to .the Alliance, in such detail as
mayS be required by th~e Execut~ive Committee or the Aldm~inis;trator,
t~he numlber of mla~n-hlours so worked, giving the reasons thecrefor,
and the ratio wFhich su~ch maltn-hou1rs bear to thne total number of
man-hours during said month.
(e) Cases of emergency, provided that at the end of eachl calendar
month ainy such employer in the Chlemical Industry shall report to
the Alliance, in such detail as may be required by the Excu~~tive
Commnit tee or the AidministlRtraor, the nurmber of man-hours so
worked, giving the emergency reasons therefore, and thze ratio whlichi
such eme~rgency man-hours hear to the total number of man-houzrs
during said month.
On a~nd after the efflect~iv~e date the mrinimluml wa;gesj paid by any
employr~er in the Chlemic~l to any employee, inlcludcing ac-
countinlg, clerlica~l, onf~ce and sales emlployees, shall be not less than
thi-rty-fiive cents per hour wheln employed in the Southern DistGri~ct as
defined belowr, nor less than forty cents per hour1 when employed
elsewhere in, the U~nited States; provided, however, tha t. if the hourly
rat~e for the solme class of works on July 15, 1929, was less t~han t~hirty-
.five cents per hour in the Sou thernI Dist ric t or l-ess tha n forty cen ts per
hour elsewhere in the United States, then in that case the miuni~mu
wages paid here under shall be not less than the hourly rate patid~ on
Julyr 15, 1929c, anid inl no event less than twenty-five cents per hour
in the Southern Distric~t and thirty cents per hour elsewhere in the
Unitedl States; provided, how\\ever, that where a State law provides- a
higher minimum wa~ge, no person em3ployed w\ithinl thalt State shall be
paid a wage below that requPired by such Sta~te lEaw. The above
provisions shall apply~ in all cases except thiat--
(at) Apprentices aznd l earners for no-t mTore thana the first six months
of emlploymlent shall, be paidl not, less than eighty percent of' the
minimnuml wages above provided and the total number of apprent~ices
and learlners shallm not eceed five percent of the total number of
employees employed by anly employer subj ec thlis Code.
(b) 3Emrployees who because of age or infirnfities are employed in
such' positions as watchmen, gatiemen, caretaker, etc., shall~ be- paid
not less than eighty percent of the minimum wages hereinabove
prvided aind the, total number of suchr employees shazll not exceed
five pe-rcent, of the total numbIer of employees employed by any:
employer subject to the Code.
In t.hle case of anly employee whose compensation is paid on other
thah an hourly basis or is basted ulpon a mneasure other than time, the
total compensation paidi shall be no: less than sulch employee would bce


entitled to receive if his comnpensat~ion were determine\ on a~n hourly
basis .
]For the purposes of thiis Article '"Southern District'" shall be
defined as that territory south of the States of Mllarryland, WC~est
Viirginia, K~entu~cky, and 1\fissouri, and including the States of
Oklah~oma~ and TPexas.

On and after thne effect~ivet date, no emnploy~er in t~he Chemica~l
Industry shall employ any person under the age of sixteen years;
provided, however, that where a State Ilaw provides a higher minimum
age, nlo person below the age specified by suchl State law shall. be
employed within that State.
The Allianlce is hereby appointed an agency for the following
purposes :
(a) To collect from the members of the Industry~g all data and
statistics in relation to number of employees, hours of labor, and rates
of pay necessary3 for the adornistr~ation of thze provisions of this Code
which mray be called for by the AQdministrator. Any data and/or
statistics of a confidential nature shall be collected~ anld compiled by a
firm. of Cer~tified Accou~ntants or other suitable agents selected by the
Alliance and not a member or connected wvith. a lemlber of the Chemi-
cal Alliance. The data and/or statistics so collected by such agents
shall be furnished to the A"lliance only in combination with other
information of the stame type and in such form as will not disclose the
individual data or statistics furnished by any single employer. N~Jo
officer or director of the Alliance or any other person or agency sh~all
at any time have access to or be furnished in any mannner .with any
information by said agents which. would disclose the individual data
or statistics furnished by any single emlployer.
(b) To r~epretsent~ the Chemical Indusitry in confer~ring with the
Administ~rat~or with resp5c~t to the appllication of this Code and of
said Act, and any regulatio-ns issued~ thereunder, anrd receive con-
plaints, and if possible~ adjust. t~he same, and to coordinate the admnin-
istrat.ion of this Code with such codes, if any, as may affect any sub-
division of the Chemlical Industry, with a view- to providinga joint
and harmonlious action upon all mlatters of commlnon interest, anrd to
receive any proposals for surpplemnentary provisions or amendments
of this Code and transmit the samie to the Administrator; prov-id'e~d,
however, that as regards all mautters mlentioned inl this paragraph (b)
said Alliance, shall not have the power in anly wayS to hirnd thte C'hemi-
cal Industry or any subdiv'isio)n thereof.
(c) The duties of the Aillinnue above enumeiiratel shall be performed
by its 'Execultive Comnmittee. Thle Administrator many namec three
representa tives who, without exesrcle to thc A~lliance or t~he Industry,
shall have the right to aIttend all meectingss of said Executive Comlmit-
too dealing with quesctions conceriiinin the admiiinist ration of this C'ode
bult such representait fti ves s~hal hIIave no vtect.
(d) ~Nthingr containedct in thiis Codelc F1hall cons~ctitulte the memribers
of the A~llialnce pa~rtnrsm~ for any puripose. Nor shall any memnber of


the Alliancre be liable in, alny manner to any one for any act of any other
member officer, agent, or employee of thie Allianne. Nor shall any
memberhP of the 111! Alince exercisijng P rsnable diligence in the conduct
o~f his duties hereunder be liable to anyvone for any actions or omis-
sions to act under t~his Code. except for his own w;illful misfeasance
of nonfeasance.
(e) The Chemnical Alliance shall: (1) Imlpose no inequitale? Irestric-
tions on membership and (2) Submit to the Administrator true copies
of its Articles of A\ssociatfion, By-Laws, regulations and any amlend-
Inints whlen made thereto.
Anll members of the C'hemical ladustryr shall be entitled to partici-
pate in and share! thre benefits of the activities of the Chemical Alliance
by becoming a member of the Alliance, or by complying writh the
requirements of this Code and sustaining their reiasona~ble share of
the expenses of its administration. TPhe reasonable share of the
expenses of admnir~stattIon of each mlember of the Industry shall be
determined by the Alliance on the basis of the total nulmber of em-
ployees covered by this Code, as p~rovidled in the Constitutionl an~d
B3y-ILaws of the Alliance or, subject to the approval of th~e Aidminis;-
trator, ozi such other equitable bas~is as the Allian~ce from timet to
time mray determine.
An~ricL VII
If anly emlployer in the Chemical Industry is also an employer in
any other industry, the provisions of this C~odel shall apply to and
affect only that part of the! business of such employer whitich is a part
of thec Chemicanl Industry.


(a) E~mpl.oyIees shall have the right to orgatnize and harga~in collee-
t~ivelty through reipre:se~nt7t~ivese of their own choosing, anld shall be
free. fromtr the in terference, restrainrt, or coe~c~ionl of employers~ of '1Inbor,
or their agents, in the designation of such represe~~ntalttives~ or in srelf-
organizlt~ionu or in~ o~th~er conlcerte~d ne~tivities for the purpose of cor:lleec-
tive bargaining or other mutual aid or protection.
(b) No emuployee and no one se~ekinrg emnployme~~t n t shall be required
as a condition of employment to join any comp~lIany unlion or to refrain
from 30mmig, orgumizing, or assistmng a latbor orga~niza ticn of his own.
(c) Employers shlall comply with the maximum hours of labor,
minimumn rates of pay, and ~other conditions of employment, approved
or prescribedl by t.he President.
In all activities under this Code, the p~eculiar rreltion of the Cheml-
ical Industry to national defense, national health, nIAtional industry,
and national agrcultur~e must be constantly borne in mind byv its
employers, stockholders, directors, executives, and employees. YThe!
presnt products of this industry should be regarded as onlyT byprod-
ucts; its main product and purpose the extension of chemnical kol


edge in the public interest. It is recognized that the Chemical Indus-
try, if it is to keep abreast of chemical progress in the world, requires
employees capable of constant advancement inr their technical skll
and of high and loyal character. Therefore, conscious of the great
purpose of the industry, by presenting this Code the employers in
this industry shall not be deemed to have waived` any of their const~i-
tutional and legal rights to engage, promote, or release employees,
and the members of thre industry shall not be deemed to have waived
any other constitutional rights.
The President may from time to tim~e, cancel or mlodify any order,
approval, license, rule, or regulations issued under Title I of ~the Na-
tional Industrial Recovery Act.

SFupplemlent~ary provisions covering fair trade practice :rules, appli-
cable to subdivisions of the Chemical Industry, may froml time to tie
be submzitted by the agency designated herein, or by an agency named
byT any subdivision, for the _approval of the President. Notwith-
standing anly provisions of Article V, or any authority conferred thletre-
by, any subdivision shall have the right to and shall be entitled to sub-
rmit in its owin bhahilf, direct to the National Recovery Admlinistration,
and to administer, such supplementary provisions concerning fair
trudec pract~ic rules, providing that no such supplemnent.ary provisions
shall1 be inconsistent with the purposes and provisions of this Code.

Subject to the approval of the President any subdivision of the
Chemical Industry operating under the provisions of this Code may
elect~ to sell any of its products only upon open prices and/or terms and
conditions publicly announced by each member of such subdivision.
AnyT c~hanes in prices and/or terms and conditions by any mlember of
such subdivision shall be announced by such member immedliately to
all other members of the subdi~vidion through such Agency as the sub-
division may determine. Variations from such open and publicly
a~nnoulnced2 prices and/or terms and conditions shall not be allowed.

ByT presentinlg this Code, anrd the specific provisions of Alrticles II
and. III hereof, those. who have assented hereto do not thereby
consent to any .modification thereof, except as each shall the~reto
subseqluently agree.
Exscept as to temporary exemlpt ions or stays arising by reason of
the operation of thle Executive O~rder of July 15, 1933, a~ny exemp-
tioni or stay oif application fromi th~e provisions of this Code shall be
granted~ by thle Admlinistration only9 after submiission of the ap~plica-
tion to the Alliance and the expiration of a reasonable tie within


whch to permit the Al~liance to submit recommendations thereon.
It, shall be the pol icyS of the AdmIlinisten~ationl in grantIIin~ an~y exemIpt ion
or staiy of appliention that Ino distinction shall be made(~t between'I the
person or pers~ons requesctmrg suLchl exemp2tionl or stay of app~icention
and other p~ersons similarly situa~tedl in the Clhemical Industry.'..
The Code shall con~tinule in effect for a period of ninety days after
the effective datte thereof, subject, however, to amendment at any
time as he~reinbefore provided, and also subject to the reserved! power
of the P~resident to cancel or modify his approval thereof. The
Code shatll continuelc in effect after the exrpiration of said period of
ninetyv days in the abfsnclle of such reserved power on the part of the
Presidentt, or in the absence of the exercise~ by members of thet Alliance
of the power which they hetre~by reserve, to termlina:tet thle Code at
any time after the expiration of the said period of ninety days. Such
cancellation shall be proposed by the Ex~cutive Conunit teer of the
AlliaYnce, by vote of the majority of members thereof at the time in
office. The proposal to cancel shall then, be submittedl to all members
of the Chemnical Alliance wrho shall be given a right to vote thereon.
If at least two thirds of the votes entitled to be cast by the membcmers
of the Chemical Atlliance, in accordance withz the provision of Article
VIII, Section 5, of the Constitution and By-Laws of the Chiem~ical
Allance, shall be in favor of canicellation, the Chemnical Alliance shall
have the power, after service of a thirty--day notice on the Administra-
tion, to terminated said Code. When so terminated, all subseqyuent
liabilities and obligations hereundel shall cease. Notwithstanding
such action by the Atllliance, any~ subdi-vision of the industry may
elect to continue the Code in effect as to itself.
Approved Code No. 275.
Registry No. 699-1-11.

II I 11111 11 111111 ii~lIII I
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