Code of fair competition for the pharmaceutical and biological industry as approved on October 25, 1934


Material Information

Code of fair competition for the pharmaceutical and biological industry as approved on October 25, 1934
Portion of title:
Pharmaceutical and biological industry
Physical Description:
p. 73-85 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Pharmaceutical industry -- 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. 698-1-30."
General Note:
"Approved Code No. 529."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004942749
oclc - 63654819
System ID:

Full Text

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

Approved Code No. 529

Registry No. 698--1--30







This publication is for sale by the Sup~erintendecnt of D~orcuments, G~overnmeltnt
Printilg Othece, WI.-b~i i Iton D). C., andl by dlistruict: ..Ib. as of thc HInen~u of Fun- ~i -a
and Domnestic Commlrerce.


Atalaum, Ga.: 3.. Post Cvi.:e Unilcaing.

Bos0ton1, ASlalss.: Ic~(l CustomlC;u se.
Buffa'zlo, N. Y'.: Chamuber' of Conulnereec~ Buiblin:ll..

Chlic.**s, Ill.: Suite 1706, 201 Nor~thl We~lls Street.
Clevclalnd,, Ohio: Chambler' of Commrerc.
Da:llans, Tex.: Cl~uabe~r of Commrercee ulnildn..
D~etroit, Mliih. : but1 First Nationtal Bunk11 Buibling.~
Ho~uston, TIex.: Cthaux~beri of Conimertcce Unibillingr
Indlialapolis,, Ind.: Chamn~ber of Commierce Unlltibln.
Jacksomlille, Fla.: CI-umb.111 r Of Commer~'(Ce fbuildting.~
KanllsusY (ity, Mlo.: 3021~ lialtimzore Avenue.
Los Aug.-h-s~. Calif.: 1163 South Ilrcarlway.~
Louisville, Kiy.: 408 Fe~deral IUnibline.i
PI~r~lein:. l'uI.-- Te: 220 F~ederal Buiblling.
M~llinn.*l'. 1.u i. inn~.: 213 FIIdenal B uildinr.
New Orlieans, La. : Room 223-,.1. Custo~mbo.use.
New N. Y'.: 7341 Customhouse.
Nor'folk, Va.: -mo~ EaISt Plume11( Street.
Phi~nI 11El.Pa. 42 Comerial'f ustBuildlingo.
Pijl~llhu.:hi P~a.: chambercr of (3oniiervc e lilliblingh.
Ponrtlandf, ()re.: 21.5 New\\ Post.- Offict Insib~ling.
St. Louis, .110.: .11'( O~live St meit.
Sa-n Frantc~is~o, Cu;lT'.: 310 Custombo~use.
Seattle. WVash.: 809 F'cdrral Office Jmilla;ine.

Approved Code No. 529



As Approved on October 25, 1934


An application having been duly made pursuant to and in full
compliance with thne provisions of Title I of the Njational Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Pharmaceutical and Biological Industry,
and hearing having been duly held thereon and the annexed report
on said Code, containing find~ingfs with respect thereto, having been
made and directed to the President:
NOW, THEREFORE, on behalf of the President of the Unlited
States, t~he National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order ~No. 6859, dated September 27, 1934, and otherwise;
does hereby incorporate by reference said annexed report a~nd does
find that said Code complies in all respects with the pertinent p-ro-
visins nd ill romte he plic an puposes of said Title of
vsaid Ac and does herotebore th at said Code of Fair Competition
be! and it is hereby approved; provided, however, that the Code A~u-
thority shall obtain from members of the Industry and submit to the
National Industrial Recovery Board within four months after the
approval of this Code, statistics indicating (a) the total number of
employees for each of the past twelve mnonthes, (b) the total monthly
or weekly payroll for each of the past twpel~ve mlontlhs, (c) thle total
man-hours for each of the past twelve months, (d) the number ofE
employees in each wagec group as shown by a frequency distribution
for each of the past twelve months; and that upon the basis of such
data or other information properly before the National Industrial
Recovery Board, said B~oardl may at any time after the effective date
of this C~ode conduct such hearing as said Board deems necessary to
effectalnte chalnges in Articles III and IVT of said Code, and that any
order the said Board may m-ak~e as a, result of suChlrl hearing shall have
the effect of a condition on the approval of this Code.
By G. A. Luencr Admi.eil~ivt; ative Oficer.
Approval reco(,I1Inunended:
ActTn~g Div)iisionz Ad min;.i tr~ator.
Wasin g xuro x, D C.,
October :5, 1934.


The White H~ouse.
SIR: This is a report on thle Hearing~ of the Codle of Fair Comn-
p~etition for the Pharmaceutical and Biological Industryv, heldJ in the
Ro~se Roomn of the Washingt~on HIotel on MIay 1, 110:14. Tihe Codelt
which is attached, was presented by duly culonlfied and not~horizede c
represe~nta7tives of the Indusltry, complying~ with staltutor~y requl~i;e-
ments and. claiming to represent eightty (8070/) percent by volumea
of the Indutry.t'3
In accordlance with the customaTry p~ros~c.-eslurl e every plersoc n who
had filed a request for alppearance waT;s freely heard in. public; anld
regulatory requiremen~lts were complied. with.

The Induxstry compri-ces about 144 con~rcernls at the pr"esent times
ncccordcing to a list compiled by the Codec Comm~ittee after1 a diligen~lt
search. In 1929, by Ct'nsus' figures, there wetre i00 concerns more
than thr~ee-four~ths of which? werre veryr small, emlploy~ing less than
20 workers p3er firm. The invested capital of the Indlustry is esti-
ma~ted at $150,000),000. Thle annual sales of 70 retpor~ting (conlcerns
fell fr~om $110,000O,000) in 1928 to 800~,rs00,000 in 1!1:: a~ndl ;:!0.000,000
in thle first half of 1933. In 1929) therlevt wcr~e app.roxiimate~lyt 14-.600
persons employed in the Indust ry, of which nearly 11,000 wsere
wage earners.

Tfhe Code ptrovidles a basic w-orkr weekI of 40 houlrS wlu1ch is a1 Ireluc-
tion il n was king~ time of ten (10'; ) percent fr~omi thc loto)! unrkllingll
hor.It is believedt that thle 40-hlour weekr will maintain employ-
ment at or slightly highcr tha~n thie 19i29 f~loun..
Th'le basic minimlu m hourly\ rate of 3.~~ pe~r hour~~1 will provide min-
imum w-eekrly earnings slightly highrler thlan those ex cisting in 19891!.
Payrolls should be broughl~lt ulp to approfXimall~f'y nlineti-\ (9~' )
pecrl.cenit of ther 19329 level, and purlcll .-ing~ poweri houbl1~ be~ ablutt
equnI;l to thle 1929 levecl.
Thre1~1( are no t;I1 rol e patie prm \is ions in thie Code, but the Codel
Authority is ini.-( ructedd to muake a studyl to dctermninee if suich pro"-
visions are n(c'c--;I'ry undc if so, to lpiopotse themn as ;owll wnll~l tS to
the Code.

found1~ a\S hfereinl Yet forThI andi on the basis of all thec pro(eedlling. in


The Board finds that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flowe of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for th~e general welfare byT promoting the organization of in-
dustry for th~e purpose of cooperative action among trade groups,
by inducing and maintainingr united action of labor and management
under adlequate, governmental sanctions and supervisions, by elimi-
inatingg unfair competitive~ practices, by- promoting the fullest pos-
sible utilization of the present productive capacity of industries, by
avPoiding undue restriction of production (except as may be temlpo-
rarily required), by increasing the consumption of industrial and
agricultural products through increasimg purchasing power, by re-
ducngn a~nd relievingr unemployvment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em~-
ployees; and is not classified by me as a major industry.
(c) T'he Code as approved complies in all respects wscith the per-
tinent provisions of said TCitle of said Act, including without lim~i-
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsecton (b) of Section 10 thereof ; and that the applicant group
is an industrial group truly representative of the aforesaid Itndus-
try; and that said group imposes no inequitable restrictions on ad-
mission to membership terein.
(d) The Codle is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or op-
press small enterprises and will not operate to discriminate against
(f) Those engaged in other steps of the economic process haveo
not been deprived of the right to be heard prior to approval of said
For these reasons, this Code of Fair Competitioan for thre Pharma-
ceutical and Biological Industry has been approved.
F~or the NJational Industrial Recovery Board:
G. A. LeoNC,
Al~dmi~nistrative Of)Eicer.
OCTO)BER 25, 1934.



T~o effect the policies of Title I of the Nati~nal I~ndust~rial 1Re-
covery Act, the following provisions are esta~bliched~ as a Codte of
Fair Competitionl for the ]Pharllnineoultical arndl Biologic-al Indullstry,
and shall be the standa~rdc of fair competition f'or such Indcustry3 and
shall be bindling upon every member thereof.


SECTION 1. (a) Thle term Pharmaceu~tical and Biolog~ica;l In-
dustr~y as used~t herein. shall mean the Industry eacch mnember>r of
which is engaged in the manufacture andi/or in having~ manulfurturedri
for himt under his own braznd aznd specificatcions, andi/or in import-
ing in packag;-!es for resale, andi/or in pa kag1ing1L~ fr~om bulkr ma-
ter~ialls under his name or brand~, and/or the original satle of pharimas-
ceutica~l and/or biological p-rodlucts for h1numan. andi animal ulse andl
prmec~lpolly intended~i for direct use boy or upon pr< Ipt,i, I onr of
phy ~inii an-, veterinarians or dentists.
(b) This definition does not include any retailers operatling under
a retail code wh2o performls arny o.f the acts specifiedi herein solely
for thle purpo~c se of c:n~ at retail to h~is ow-n I'n-tuner.i's, andc not Fo-r
the pIur~pose of sale to other dlistribu~torbts; providecd, howevecr, that
where a retailer oplerates a\ laborantor~y or plant dliStinct fromln his
retail operations, and emluPOys aL special grioupl of cluplloyee.l' to work
primarily in such labor~ator~y or plant dlistinct from thnt1 group11 of h2is
emplo ('('4 who1 wor11k; primarily in hiis retail e~stab~lisihnuent,~ andi suchr'
laboratory orI p1lnt pr~for~ms any of thte acts sp--emedi~c herein, whrlether
for sale to such retailer's owin customrsorlc iI to, otherI listrib~lutorls,
such retailer is subj~ctt to thle provisions of thiis Cod~te in rc-1.**et to
such labolrtory or plant.
(c) This Cod~e shial l ott apply to the mnufact~lcure and sale of
A2nti-How~r Cholern scrumn~ and II.l(F-Cholern Vir~us.
(d) TIhe term "L original salle as u~sed hcrcin meat~ns the sale hry a
memcrber of Ithe! Imtlust'ry, subsid~iatryv husinevs enter~prive,~ corporations i
fir~m or par"'tnership ownled or c~ntr~olledl hv, sulch~ member.s f andi the
sale bty ant eclusive distributor or agenlt of sulch ulnember, for re-nle;
prov<'idedt, howevc er, thiis tel~rml <1,e- not itc~lutle sale by\ wh-tole~-:leri- or
retailotrs wlic~h diistribuite pr"incipa\lly a genrailcl line of thec prodluets
inctitclue uwler this Code.
,Co now 9Zj TheC tenuTI '" memberlfl of thf XInduIStry ") alS used" he~rrein

t i on11corp~orat ion or Other"T formlf of enterprIiS1" equeed ~.~ in the Indu stry,\
either no- an enplloyer or onl his or its ownl be~half.

SECTION 3. The term "' employee as used herein includes any and
all persons engalged in the Industry~, however compensated, except a
member of the Industry-.
SECTIO)N 4. Thle term employer as used herein includes anyone
by wvhomn such employees is compensated or employed.
SECTON 5. rT~he term "L establishment as used herein includes anyd
plant, laboratory, business, branch, or department thereof engaged
in this Industry.
SECTIOS 6j. Tlhe terms President ", "Act ", and National Indus-
trial Recovery Board as used herein mean respectively the Presi-
dent of the Unlited States, Title I olf the National Industrial
1Recovery Aict, and the National Industrial Reco~very Board.
SLECTION 7. D~efnitions of Person~nel.--(a) The term executive "
as used herein means an employee responsible for the management
of a business or a recognized subdivisions~ thereof.
(b) The term outside salesman as used herein means an em-
ployee selling his employer's products or an employee calling on
hospitals, physicians, dentists, andc veterinarians for the purpose of
promoting the use and sale of his employer's products, if such
employees are engaged more than, sixty percent of their time outside
the establishment or branch thereof by which they are employed.
(c) Thne term "' outside service employee as used herein means
an employee who is engaged not less than sixty (60%0) per cent of
his working hours mn delivering, installing, and/or servicing
merchandise outside of the establishment, and shall include stable
and ga~rag'e employees.
(d) The term wPatchman as used herein means an employee
engaaged primarily in safeguarding the premises and property of a
member of the Industry.
(e) The term fireman and engineer as used herein shall
mean employees engaaged primarlily in the upkeep, preservation,
operation and repair of furnaces, boilers, engines, pumps, com-
pressors, heating and ventilating equipment, electrical generating
plants, or other machinery used for supplying hleat, light, v-entihxL-
tion or power to a building, plant or office of a member of the
Industry; but do not include such employees as porters, elevator
operantors, cleaners, or operators of nur~chiness used directly in a
manufacturing process.
(f) The terml Laboratory apprentice as used herein means a
laboratory employee whoe has been em~ployedc in this Industry le~ss
than a total of two (2) months.
(g) The term office apprentice as used herein means an. ema-
ployee engagedt in offce and/or mle~ssenger1 wmorki who has had lecss
than, a total of six (6) months office work experience.
(h) The term branch house and shipping service employee 'as
use-d herein shall mean an employee engaged primarily in the re-
ceipt, filling, invoicing, shipping, and handling of orders for the
prouctllt of "a member of the Indus~LtryS whether employed in the
home offce of such member or in a branch or depot thereof.
(i) The term research and scientific worker as used herein shall
mean anr employee engaged primarily in research and scientific workr
where special education or scientific training is essential.

(j) T~he term continuous process as used hlerein means a process
which once begunll, cannot be interrupted until completed, without
spoiling the polc~ls pro~l~c~esed or rendleringf the wor'k dlone valueless;
and which must be atttended~c throughout by the satme individual. or
individuals; andi which cannot be begu~n at a cumele-intly early hour
to allows of its completion wvithin the; eight (8) hocur shift in which
it is begun.

SECTION 1. No wtatchlman, fireman, engineer, or outsidet service
employee shall be permitted to workr in excess of forty-eighlt (48)
hours per week averal~ged over a consecutive tw\o week'~ls' perIod nor in
excess of twelve (12) dlays in any consecutive four!ltee; n (14) (lays.L'
period, except as providedl in Section 5 of this Article.
SE:CTIONc 2. Except~ as provided in Section 5 of this Article, no
branch house and shipp-ing~ service employees, shall be permitted to
wvorki in exrcess of for~ty-five (45) hours per week; or more than six
(6)r days in consecutive sevenl (7) days' period; provided, howr-
scribed in this Se~ction alt re etablisihedJ for this class of employees in
a Code for the WItholesale Drug T~rade, sulch- mlaxrimum hours shall
be~comel the maximium hours in this Inll1u tryS.
.CI(rms~ ,3. Pharmacists, research and sl~ciintific. wa~lkerls and chemi-
istss actually wor~kingr at their pr1ofession~s andl even~lt'ves, who rcteive
a, salary or gularanteed-l minilumum of thirty-five dollars ($:3r.(.00) or
more pe~r weeki; and outside! .-a;lanwn~; shall be exemprlt from~ the pro-
visions of this Article pertaining tol hours of Liaborl.
SECTION 4. (a) No other employee sha1ll be pensiiittcel to wo~rk in
e csel~ of forty (40) hours in any on~e wreek;, ntor morlle. than eihlt (8)
hours in any twenty-four (24) hour period, nor more thaxn six (6)
(1ayTs in? any consecutive sevTen (7) days' period, except as p:rov~idedr
in Section 5 of this Article.
(b) No emlployee working on continuous process shall heI per-
mitted to w~orkl in exscess o~f twelve (12) hours in anyr olni day or molre1
than forty (40) hours in any one week.
SECTION 5. (a) An~ry emplloye~c innylu be pecrmitted to wo~(rkl in ecesls
of the 1ISinnximumn hours fixed in Sections 1, 2 andl 4 of thlis Artircle
provided hie is panid aIt the rate of at least timne and onel:-thirdl (11/35)
for all houris wor~lednl by him in excess of sucrh maxsimum hanrs,.-; and
p~rovided~l further than suc~h overtime wrorki shall not ('I':.1l ~igh~lt
(8) houirs in any onel weerk aInd- eight (8) wreeks in any clne (nlendari i
(b) In calse of an cepidemlic, rntastr~ophe.r or nemrnc
brpakldowvn involvtingr protection of life or proprtY, such C1mployees'(~
as are necessary mlay be Ilcrmitted tot w~ork unlimitled over~itimei pro-
viduarl that suceh (employees1'~~ shall b>e p~aid at th~e rate of a~t least time
and o~nc-thirdv (11b) for all hours wrorked by him in eces(~s of the
app~lilblle maximumr fixed in Sectionls 1, 2, 00.11 4 Of this ArltiCle.A
reCpor't of each I-uchl crlnwL~~rncy shall be cnt to the Colell Auithocrity
within thirty (30) I1;yS alfter" Such1 I.mergencyIII.\ overtl~inwl~ work shlnl
hav\e rrmnlnlllceed, gi~irl such detalilS as5 the Codeo Aucthcr~ity maly

SECTION 6. No employer shall knowingly permit any employee to
workr for anly time which when totaled with that already perfonnedl~c-
with another employer or employers in this or any other industry
or anly trade exceeds the maximum number of hours provided herein
for the class of workz done by such employee.

SECTION 1. No employee shall be paid in any pay period less than
at thze ra~te of thirt~y-five (354) cents per hour, except as provided
in Sections 2 and 3 of this Article.
SECTION 2. No laboratory apprentice or office apprentice shall be
paid in ainy pay period less than at the rate of twpPenty-eight (28)
cents per hour, provided that the total number of such employees
who are actually recei-ving less than thirty-five (35) cents per hour
shall not exceed one for every twenty (20) employees employed by
anly member of the Industry, but each member of the Inldustry shall
be entitled to employ one such Inbo-ratory or office apprentice.
SECTION 3. A person whose earning capacity is limited been~fuse of
age, physical or mlentn] handicap, or other infirmity, mnay be em-
ploy~ed; on light work at a wa~ge belowv the minimum established by
this Code, if the employer obtains from the State Authorit~y, desig-
na~tedf by the U~nitral States Department of Labor, a certificate au-
thorizingr such person's employment at such wagel:s and for such hours
as shall be stated in the certificate. Such A~iuthority shall be g~uidedi
by the instructions of the United States Department of L~abor in
issuing certificates to such persons. Ealch employer shall file eac~h
month with the Code Authority a list of all such persons employed.
by him showing the wages paid to, and the maximum hours of work
for such employee.
~Srcenowl 4. T~his Article establishes minimum rates of pay which
shall apply, irrespective of -whether an employee is actually com~pen-
sated on a time-rate, piece-rate, or other basis.
SECTION 5. No employer shall make any reduction in the full tim~e
weekly earnings of any employees whose normal full time wveekrly
hours are reduced by 20 percent, or less, below those existing for thle
four wFeeks endingf July 11, 1933. When the normal full time weekly
hours of an employee are reduced by more than said percent, the
full timne weekly wage of suchl employee shall not be redluced by more
than one half of the percentage of hour reduction above said per-
cent. In no event shall hourly rates of pay be reduced, irrespective
of whcthler compensation is actually paid on an hourly, weekrly or
other basis, nor shall any wages bie at less than the minimum rate
herein provided.
Wirthirn 60 days of the effective date hereof, (unless such adjust-
ment has been made theretofore) each employer shall adjust the
schedules of wages of his employees in such an equitable mannnerl as
will conformn to thne provisions hereinnahove set forth, and still p~re-
serve wage differentials reasonably proportionate to those in effect
prior to the effective date of this Code.
ISECTION 6. Female emnploy-ees performing substantially the same
workr as male employees shall receive the same rate of pay as male

SECTION 7. WF~ages shall be paid at least twice per month in lawful
currency or by negotiable checks payable on demanlnd.

SECTION 1. NTo person under eighteen (18) yes rs of age shall be
employed in the Indulstry excce~t. as office boys, office girls, messen-
gers, or in other non-hazardous occupations. N'o person under six-
ten 16 yars of agbre shall be employed in the Indusltry in any
ten p6)a 1cit. I any State any employer shall be deemedl to have com-
plied with this provision as to ag~e if he shall have on, file a certifi-
cate or permit, duly signed by thle Authnority ini suchn SCtate .em-
phowrerd to issue emrploy~ment or age ecertificantes or permits showring
tat the employee is of the age required by this Section.
SECTION 2. (a) Employees shall havPe the right to organize and
bargain collectively through Ie~pr~esentatives of their own choosing,
and shall be free from the interference, restraint, or coercion of em-
ployers of labor, or their agents, in the designation of such repre-
sientatives or in. self-organizationn or in other co~ncerltedl activiies
for the purpose of collective bargrain~ing or other mutual aid or
(b) No employee and no one seek~ingS employment shall be re-
quired as a condition of employment to join any company union or
to refromn from joinmng, orgamizmg, or alss~istingr a labor orgarniza-
tion of his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employmencrt, ap-
pr''(wed' or prescribedl by the President.
SrcEC'oN 3. Every employer shall provide for the safety and health
of his employees at the place and during the hours of their employ
nIe1nt. Standardls for safety and health shanll be sublmittedl byth
Cade Authority to the National Industrial Recovrcly Bon rdZ within
six (6i) months after the effl-ctive~ date of thiis Code,. and upon ap-
pr"oval by the National Indiustrial Recovery Bo0ardl sha~ll beclome
operative as a part of this Code.
SwCr~c.oN 4. No emlY3oye~r shall rchasllcif~y employees or duties of
occupations performed, or (.'1nce" in any o~therl subterfuge~, so as to
defeat the purpc-,ls or prn(~vi-ions of the Act or of this Code.
Seel now() 5. No provisionl in this Code 1hall superrsedr e anly Sltate or
Federal law which imposes more strin::ent Irclquiremenl~t s on emnploy-
e~rs as to agre of emp~-loy)ees, wave.-. hours of unrkI1, or a~s to salftyv,
]Ienlith sanitary or general was~, kiner~ cond-itionsi, or insurance, or fireo
protection, than are impowdc~i by! thiis Ctrli.
SECTIONU 6, Al employersl'~ shall F"st arntt Iknopl Pnoted clnmplctte
copies of theO labor provisions of thiis Code in rilliclcnspmou Pin(ces
easily nces~sible to all employees. Eve.ryl\ ml'mbrc1 of the Imnlllltry
fiha1 ll rniply with- all rulers and rmu!rlationr s relaltivce to thec postimr~ of
prcl i-innl of (todes of Fanir ('anlipetit~ in which Iin:ry fI~lro timle to
timc h~e prescribcd byg thee National Indstr4llial Ri'ecovrlr y Ilori:l.

about, or giving evidemyrc w-\ith respect to, an alleged~1 violatinn~r of thiis

SECTION 8. The hours wrorkdc by anly employee, except outside
salesmen, during each day shall be conlls~cutive, provided that an
interval not lolierI th-an one hour m~ay be allowed for each regular
meal period, and such in~ter~val not counted as part of the emnploye~e's
wt\orkiing time. Any rest periodt which may be givetn employees shanll
not be deducted from such employee's working timne.



SECTION 1. Ai Code Authority is hereby established c(:ncisting~ of
five (5) permn, to be elected in the following manner, and to serve
for one year or until their successors shall be elected:
(a) Pending the selection of the permanent Code Authority as
herein fterl providedc, the Code Committee dtuly selected by thre In-
dustryy to submit this Code~ to the Nluational RecoveryS Administration
shall act as temporary Code A1uthority.
(b) W~Sithinl five (5) days after the effective date of this Code, and
annually thereafter, the Codle Authority in office (w-hether a temz-
p~orary or a permanen'-t Code Author~ity;) shall nominated? a list of
t~en (10) individuals rep~re.-entativve of this Industry, not more than
eight of w-hom shall represent trade tlnrc~iation!s in this Industry.
This list, wvithl the trade association affiliations and the company con-
nections of each indrividiual indicated, shall be submitted to the
National Industrial Relcoveryi~ B~oard or the Admrinistlratcion
of the Code Authority for approval or amnendmlent. As so approved
or amendedlt thte list shall,1 be placed on a ballot containing on its
face! five bliank lines for addlitinuarl nominations. A~ copy of this
ballot together w-ith a copy of this Code shall be mlailed~ to all
members ~of the Inldustry whose exristen~cec can be dletermI~inedt by
diligent search by the Code Authority.
(c) Each mzembler of thle Industry shall be entitled to the number
of votes indicated on the followcingr Table of Votes. These votes may
be cast for any five (5) nomlinees, and selection mzay be made1P from
t-he names printed on the ballot or by w-ritingr in mother~ names onl
the blank lines. The ballot as so marked and -ignedl~ wiill be mailed
Lucki to such address as shall be designatedd by the Code Authority.
The Codle AuthorityS shall fix a datte before whvlich all marked ballots
must be in the mail, providedc- that such late shall not be less than
fifteen (15) day~vs after the d~ate wFThen all ballots wfere mailed out to
the Industry by the Code Aiuthority.
(d) The APdministration Alembller of the Code Authority shall
personally supervise the counting of votes. A list shall be made of
all nominees in the order of the greatest number of votes received.
There shall be not more than four (4) representatives of te~nd~e asso-
ciations on the Code Aiuthority and to effect this purpose, the follow-~
mng pr~ocedc-ure will be carried out: (a) The individuals on the afore-
said list shall bre canvassed to de~terminanehich are unwilling, unable,
or disqlualified to serve, and the .rnanw~s of such individuals deleted.
(b) Tlhe names of all mlemb~ers of each trade association after the
first four members of trade associations on the list shall be stricken


therefromn. (c) The first five (5) individuals in order upon said
list shall then be declared elected and shall take office immediately
u pon the approval of their election by thle National Industria~l
REecovery Board.
(e) If a vnalcanc shall occur on t~he Code Acluthorityr between elec-
tions, it shall be filled~ for the unexpired term by the remaining mgIemr-
bers of the Code ~Authorit~y subject to approval by the National
Industrial Recovery Board of the person so chosen.
(f) Members~l'I' of the Industry must note upon their ballots the
number of employees which they have used in figuring th~e number
of votes allottted to them by the followingl Table of ~Votes:


Thle number of employees of each member of the Industry shall be
determined by c'omrputingl the average number of each member's em-
ployees engaged in this Industry for the calendar year ~preceding
the year in which the election is held and subtralcting therefrom the
average numbercl of such member's outside salesmlle n for such calendar
Average numnber of ent plrilave (less ouktside salesnten) for flee calendart~ year
preceding the yea~r ire whlich the election is held
Number of uoles Number of votes
0 to 5__,--------_- 5 151 to 300____________ ---5
6 to 10___-_---__--- 20 301 to 650_______----- ...,, 110
11 to 20_-,--------, 35 651 to 1,200________,_ 125
21 to 40___--___-___ E50 1,201 to 2,500 ...._,__,,,, 140
41 to 80_ ___-----___ 65 Mlore than 2,500_,---,-_- 1~3
81 to 150_______-_-__ 80
SECTION 2. In. addition to membership as above provided, there
may be3 three (3) or less members, without vocte and without expenlse
to the Indutryit, to be known as Adtminiistration Mcmberls, to be
appointed by the Ntational Industrial R~ecovery3 Board to serve for
such term-s as it mayT specify.
SECTION 3. 111 ordler thni the Code Autholirit vt shall, at all times,
be truly representative of the Indlustry andi in other repc-ll.ts comply
writh the provisions of the Act, the Nationall Industral Recove~ry
Board may provide such hlearings~c as it' maly d~eeml prop0er; and there-
after if it shall find that the CJode Aut~hority is not truly represe~nta-
tivre or does nlot in otherI rcs~pects minplly~ with- thle procvisionsl of the
Act, may require an appropriate modificationl in. the mcthlodl of
selection of the Code Auithiority.
Strat1oN 4. Ens-h1 tr:ule~ or Industrial ,..cnto irel o n
drect~ptlyc partriciptingr in thle selection or na1tivritics of theCl
Atotyshall (1) impose no inqitablii;~~e restritctillns on membell~r--
Aiihoipan (2) sulbm~it to the NationIal Indutia~i~~l Recovey Enn
tru~e copies of it~s a'rti?.'l of a '-clint ionl bylair-~, rules~- or regullllation,l,
ni all( 8 1111s*lai' ClntS Wh~enl Ilma e t llrc to, togeths.*r Wl tsil wth oII 1ctlier
IinoT~nlllithD ;s tO menlbrlld)PT11p cflilldlil~l.:Ior1 odB :0Ille.ii~s (14 th
NaltioII~ nal lu-tl rI- eo\cvery Boa~rdt ma~y deeml.rl IcessaryI' I to fcl'cctul-
ate thle Purposes"` of thec Alct.
SEFC'~!I 5). NoT~thling~ contatinedj in. thlis Cod(e sha~ll con-titulte the
ownher I I '1 of thle Cod Auth ~ 1 1Iori ty partners'~' s for anly 1 Ipurpose. Nor shall

any member of the Code Authority be liable in any manner to any-
one for any act of anyi other member, offcer, agent, or employee of
the Code Authority. Ntor shall ainy member of the Code Aiuthority,
exrcising~ reasonable dlige~r(,:(e in the conduct of his duties here-
under, be liablIe to atnyone for any na-tion or omission to act under
the Code, except for his own wilful malfeasance or nlonfeasance.
SECTION 6. If the National Industrial Recovery Board shall de-
termine that any arlctin of thle Code Aiuthority or any agen-cy there-
of mnay be unfair or unjust or c~onltrary to the public interest, thle
~National Indu-rtrid Recovery;? Board ma~y require that such action be
so-pen'l'd d to afford an opportunity for inve-t ilat ion of the merits of
such~l action. and further consideration. by such Code Authiority or
:mornley pwln:ing~ final action, which shall not be effective unless the
National Industrial rL"''nvery'3 Boar'd approves or unless it shall fail
to dtisap-pIrove after thirty (30) days' notice to it of intention to pro-
ceed with such action in its original or modified form.

Swans 7. Subject to such rules and regulations as mayr be issued
by the National Industrial Recovery Board, the Code! Authority
shall have the follow~ingb powers and duties, in addition to those au-
i~thoIriz byI o~ther prov-isionls of this Code:
(a) To insure the execution of the provisions of this Code and
to provide for the compll.lianc~e of the Indusrltry3 with the provisions
of the Acet.
(b) To adopt by-laws and rules and regula~tion!s for its pr'cceldure?.
(c) To obtain. from members of the Industry such information
and reports as are req~ruiredl for the adminlri-tra:tion of the Code. In
addition to information reqcuiredl to be submitted to the Code Aiuthor-
ity, members of thle Industry subject to this Code shall furnish such
statistical information as the National Industrial Recovery Board
may deem necessary for the purposes r~c~itced in S~ect~ion 3 (at) of
the Act to such Federal and State ag~rencies as it mnay designate; pro-
vided that nothing in this Code shall relieve any member of the
Tn~Indust ry of anyn exis;tingJ obligations to furnish reports to anyT Govern-
ment agency1~!. No individual report shall boe disclosed to any other
member of the Industry or to anly other party except to such other
Governmental agnrSl~ci as may be directedl by the National Industrial
Recovery~ Board.
(dl) 'Io use such trade neso~ciations and other agencies as it deems
propDer for thle carrying out of any of its activities provided for
herein, p~Irovided that nothing hecrerin shall relieve th-e Code Aulthor-
ity of its duties or responsibilities under this Code and that such
trade associations and agc~ccies shall at all times be sulbjct, to and
comply wit~h the provisions hereof.
(e) To make recommendlationsl to thne Niational Industrial Recov-
er~y Board(- for the c~oo,~lrdninatn of the administration of this Code
with such other code-ls, if any, as mary be related to or affect members
of the Industry.
(f) 1. I~t being found necce~ssry in order to support the adminis-
tration of this Code and to maintain the standards of fair com~peti-

tion~ hereunder and to e~ffectuate the policy of tlhe Act, the Code
Authority is authorized:
(a) To incur such reasonable obligatiions as are~ necessary and
prroper for the foregoing purposes, and to meet suchf obligations
out of funds which may be raised as hereinafter provided and
which shall be held in trust for the purposes of the Code;
(b) T'o submit to the National Industriarl Recovery Board for
its appr`ova:l, subject to such notice and opportunity to be heard
as it may deem necessary (1) an itemized budgerct of its estimated
expeses-'s for the: foregoing purposes, and (2) an equitable basis
upon which the funds necessary to support such budget shall be
contr~ibuted by memberi~cis of the Industry;
(c) After such budget and basis of contribution ha~ve been
approved by thne National Inmdustrial Recovery Board, to deter-
mnine and obtain equitable contribution as above set forth. by all
members of thle Industryr, and to that end, if necessary, to
institute legal prn~cedc~lc-ing therefore in its own name.
2. Each member of the Idndustry shall pay his or its equitable
contribution. to the expenses of the maintenance of the Cfode Atu-
thority,! determined as hereinabov~e provided, and subject to rules and
regulations pertaining thereto issued by the ~National Industrial
Recovery Board. Only members of the Industry complying with
the code and contributing to the expenses of its administration as
hereinabove provided, (unless duly exempted from making such coln-
tribution) shall be! entitled to part icip~ate in the selection of members
of the Code At~uthority or to receive the benefits of any of its v\olun-
tary activities or to make use of any emblemn or inlsign~ia of the
National Recovery Administration.
3. The Code Authority shall neither incur nor pay any obliga-
tion substantially in excess of the amount thereof in its appr~ovedl
budget, and shall in no event exceed the total amount containled in
the approved budget except upon approval of the National Indus-
trial Reccovery~ Board; and no subsequent budget shall contain any
deficiency budgtlct item for expejnlitures in ecscr s of prior budget
estimates except those which the Nationa~l Industrial Recove\ry3 Board
shall have so approved.
(g) TCo rIec~onunendn to the N'ational Industr~ial Re~coveryS Board
any action or mnlrsurles dieemed ad visablle, including fair trade prac-
tice provisions to gove.(rnl mclmberI~s of the Industry in their relations
with- each other or w~ith other trades or indlustries; measu~~r~es for in-
dustrial planninc, and stabilizaltionr of employment andl inrcludlingr
modifications of this Code which . hereof up~on alpproval by the National~l IndusItriall nR.covery~.3 B3oard
after such.1 notice and2 hearing as it ma~y spc~i fy.
(h) To make~c a studyl\ with a view of determininrr whether thec
establishmlent of Rules of Fiair Trmle P-rat (tircl: including adllitiolnal
stantlard--, am re necessary in the Ilrill-tryS. Thec findingS anld recom(11-
mndacltionsl of the Cotle Authoriiity, I~incether with .such1 rules'~ if anyl,
as it maly find nce of thle permanxent Code~ Auitho~r~ity be submiittle to the Natfinal~l In-
dustrial Recovery Boar11d, andi after such heal~ring and invc-li~lgat ions1
as it mnay pr~-lcr~ibe, suich rllTes ;Is it mafy des'.ignatef and aplprove,~ if
any, shall be~ malie a parlit of this Code.

A r:~rcri e VII-Afoolvlrevrr.ToN

1. This Code anzd all thle provisions th~er~eof are exupreely made
subjc~ct to the righta of the President, in accordance with the provi-
sions of suLb-sec~tion (b) of P: -tion 10 of the National In~ustrial
Recoviery Act, fromt timne to time to cancel or modify anly ore,llc
approval, license, rule, or reguzlation issued under Title I of said Act
and ~iscrifi;llly, buit without limitation, to the right of the President
to0 cancel or modify his ap~pro~val of this Code or any condition
impsedbyhim3 up)on his aIpprovalI thereof.
2.psr Th1"is~ Code, except as to pruovisions required by the Act, mnay be
aImcended, modified, or supp,!enwaclted, such amendment, modiification,
or supplemenl~lt to be based upon application to the National In-
cdo trialr Recovery B~oard and such notice and hearing as it shall
pe~t ify,) and to b~eome effective on. approval of the President.


N\o pro-visions of this Code shall be so applied as to permit monop-
olies or mnonop~olistic practices, or to elimlinate, oppress, or discrimi-
nate against small enterr1;i a.

Wh"ler~eas the policy of the ~Act to increase real purchasing power
will be maldet more d'ifficult of consuInnallll~tion if prices of goods and
services increase ats rapidly as wa~rges, it is recognized that price in-
creases cex. oplt such as mnay be required to meet individual cost should
be delayed. And when made, such inecreases should, so far as p~os-
sible, be limnitedl to actual additional increases in thne seller's costs.

This Cod~e shall become effecti~e! on. the second Mond~ay after
approval by the Pres.ilenIt.
Approved Cod~e No. 5j29.

llII I II I Ill ll II I I I I 1111I
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