Code of fair competition for the package medicine industry as approved on May 15, 1934


Material Information

Code of fair competition for the package medicine industry as approved on May 15, 1934
Portion of title:
Package medicine industry
Physical Description:
p. 185-197 : ; 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. 698-2-22."
General Note:
"Approved Code No.430."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004942747
oclc - 63654821
System ID:

Full Text





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

Approved Code No. 430

Registry No. 698--2-22




This publication is for sale by the Supe~:rinwrull~lnt of Documents, C\cvernm entt
Printing Office, Washington, D.C., and by district offies of the Bureau of Forecign
and Domestic Commzerce.
Atlanta, Ga. : -104 Post (,fthi a Building..
Birminghamul Ala. : 257 FEiederal rBaildling.
BostOnl, Mass~. : 1801 Custombouse.
Buffalo, N.Y.: ('Ilut1,(ine of Commerce Building.
Charleston, S.C.: Chamber of Commerce Buildling.
Chicago, Ill.: Suitce 1'700, 201 NurIIth Wells Street.
C1levelainl, Ohio: C'llumberc of Commere~.
Daillas, Tex.: Chamber of Commerce Build~ing.
Detroit, Mich.: 801 F'irst Naltionall Bankr Iuild~ing.
H-ouston, Tex.: Chtambler of Commerce Buildiing.
Indiarnapolis, Indl.: ch'l:lumber of Comnmeree B3uilding.
Jacksaonville, FLila.: Chiambter of Commerce B~uildling.
K~ansas City, 310~.: 1028~ Baltimore Avenue.
Los Angeles, Calif.: 1103~ South B~roadw\Tay.
Louisville, Ky.: i!'" Federal D3uiblinei.
Memphis, ITenn.: 229 Fede~tr.l Build~ing~.

Newr Oc'lr..: ul La.: Room 225-A, Customb~ouse.
Newv Yorki, NU.Y.: 7i34 Customhnouse.
Norfolk, Va.: 400ll East Plume Street.

Pittsburgh, Pa.: ChI1IInher1 of Commerrce Bruildting.
Portland, Oreg.: 215 Nlrew Post Ofli.- Iunilding~.
St. Louis, 3[11.: 506 Olive Street.

Senlttle, W\ash.::il 500 Feeral O~ill (e I:ildling.

Approved Code N~o. 430

As Approved onl May 1.5, 1934


An. application, l havling~ beenI duly made pr~ll anlt~l to and in full
complianlce w'ith~ the prov,\isio~ns of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Co~de of
Fair Complletition for the Packagn~re Med~~icine Industry and hearings
having been~ duly held thereocc n aLnd the annexed. report on said C'ode,
containing findings with respect thereto, having been made and
directed t~o the Pdresidlent:
NOWV, TH-IE'REFORE, on behalf of the President of the United
States, I, Hungh S. Johnson, Administrator for Industr~ial Recovery,
pursuant to authority vestedl in me b~y Excutive Orders of the
PrIesidient, including Executive Order No. 6543-A, dated December
30, 1933, and othlerwnise; do hereby incorporate by I~~reference said
annlexdc~ report and do find that said Code complies in all respects
with the pertinent provisions and will promote thne policy an~d pur-
poses of said Title of said Act; and do hereby order that said C~ode of
IFair Comrpetitio~n be an~d it is hereby approved; provided, however,
that there he added to Article II, Section 1 thle forllow~illr senltence~t:
L"This defi~nitionl does not include any retailer operating undlrer
a retail code who performs any of thle acts spec~iified herein solely
for the purpose.,5 of sale at retail to his own customers, and not for
the purpose of sale to other distibutors; provided, however, that
where a retailer operates a laboratory or plant distinct from his
retail operal~tions-, and temploys a spc~cial group of employeesr to wr;ork
primarily in -1uch laborllatory~ or plant iltic-t fromt that group of
employees who workr primarily in his retail establishmentss,
and' such laboratory or plant pe~rformIs any of the actsi specified
her~ein~, whether for sale to such retailer's own cus~t~omers1 or to other
dlistr~ibutors,; sulch Ilaboratory or plant is ~lbjec~t to the p-rvc,\isio~ns
of this Code."'
Hean, S. Janxsoxr,
Admin~lillst''ratr for Industrhd'; l Recovery.
Appro':val r~etlllconunend
H. O. KINo;,
Division Alr7ninri,?tra/tor.
MaySi 15, 1~~b'-- 934.(


The Wh~ite HZ~ouse.
Smn: T]his is a report on the, Hen;l~rin on. the Code of Fair ~comple-
tition for the Packagel~ M~edicine Ind~ustry, held in the Clarlton R~oomn of
the Calrlton Hotel on January 17, 1934~-. The Code, which is attac~het,
wvas pre-uen~ltedl b3y duly qualified aInd auth~orizled re~llut-rlltntatie s of
the Industr~y, cmanpllying withn statutory requ:li Illwnts and claimning
-to repremen(~lt eighty-five p~er ce~nt by volume of the\
Innlcorl~~lltlac wiith the customary pro~cedturec every\ per1-onl who had
filed a I'request; for appeannee'' was freely honerd. in public; andl regru-
latory requl~iremen clts were complied with.

Thet Industryc~ (conipr~i-es~ about 1,400 co~nlerns,-; having ann invest-
ment in 1929 of approx''imnle; L ly $16i0,000,000. Aggr~egate annual sales
fe~ll from $;318,906,928 in 1990 to about $5.i1.00i0,000 in 1939~. I~n :1929
the Industry emlployed~t 26,000 persoic- ns of whlom 16,400 werle wnge

I'li illrluSi Of" THEE CODE

The Codef p)'~rovide a, Un-irci: work wFleek of forlty (40) hours~i. which-
is a reduction of 4.4 hours be:lowvc the 1990~ aversive~t. This reduction
is not sufficient, to Istor~e employment enlti~el~y to lthe 1990r~ fiure.
H-oweve\-r, it should. be noted tha~t. ff~igures for Novembrlllcl,~, 198, indi-
cate! thtat~ employment has increased to about ninety (90) perlcent of
the 1929 avierawt~ This increasel~c can be attr~ibu~tedr to the cffccts of
the PgreJsident's Reemployrment Agrl~eemecnt a2nd to the? usul~~ seasonal
Thel Ilininilllrln rates of pany in 1900~, were general;ITy I`;c fless th
tiventliy-five (O; -) cen~lts on~ hour in thle Sout~h and 1~c llow tha tirty'
(:i0l:) ccrents in the North. TheI( minimum rates of thirty-five~ (33{)
cenrt- in thei Nor~th andlr thilt t-two andc one-half (:91.3) cen~lt., in th4e
Sou~thl prlovidedc inl this Code1l should pmvc,\itle~ I~inininsurn~ week(~ly' ('urI-
in~gs above tho-cc in. 1990~c, naIvcf ith-tandll~ ing the redu~c~tionl in hou,~rs.
Payro~lll s which~ fell olst about o-hi (If h) llurling the~ leprrevion
in iIcl im-ronw fiftc'ien (15': ) percentillf inlS i.'ll i'' N mb r, 193. fromll ftheir
lowv point. Conqllliunrce with the Codle shionhtl 1~ ~ shw further
inecrouse~c estima~tlld slightly above ten (1(1:;) 10"''"t,*

replallced by! an copen p~riCe systern d scigned~i to e~liminalte ,-ame e f th~e
competitively abulses in the I'rwhistry\ andI tol aid in tnh~ilising~ c(ndii-
tios omu i te dstibtiv banhesofth Inusry


The Code provides for the appointment of representatives to
serve on a Drugf Industry Coordinatingo Council which shall have
representativess from all the various branches of the Drug Industry
and be constituted to act as an advisory and planning body for the
whole Drug Industry.

The DeputyT Administratorr in his final replort to mne on said Code
having found as herein set forth and on the bas!is of all the proceed-
ings in this matter:
I find that:
(a) Said Code is well desigjnedI to promote the policies and pur-
p~oses: of TPitle I of the National Indueltrin Re~coveryJ Act, inluding]jl~
removal of obstructions to the free flowv of inter-state and for~eigrn
c~onunllerce which tend to diminish thne amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
diustrly for the purpose of cc-ooper~ative ~c~tionl among the tradelt groups,
by inducing and ma~iintaining united action of labor and managr~~cement
under adeqcuate gov-ernmenrital sanctions and supervision, by elimi-
nating ulnfir;T competitive pracPtice, by promoting the fullest possible
utilization of the present production capacity of industries, by
avoiding undue restriction. of production. (except as may be ~tem-
porarily required), by i~llcncreasin the consumptil~ton of indus~trial
and agricultural products through inlcreas-ing~ pulrchrasing power,
byj reducing and relieving unemployment, b~y improving standards~d of
labrandbyotherwise rehabilitating industry.
lb(b) Saidf h~p Industry3 normally employs not more than 50,000 emn-
plo~yees; and is not class~ifidc r by me as a major industry.
(Ic) T'he Code as approv,\edl complies in all respects with the per-
tinent provisions of said Title of said AIct, including without limi-
tation S~ubsect~ion (a) of Section 3, Sulbccction~ (a) of Section 7,
and Subsc~cticn (b) of Section 10 thereof ; and that the applicant
roup' is an industrial group truly repr~etsentative of the aforesaid~
Industry; and that said on)u imposes no inequitable restrictions
on admission to mn~nembership, theremn.
(d) T~he Code is not des~ignecd to and will not permit monopolies
or monopolistic pl'actices..
(e) The Code is not dlesigned~ to and will not eliminate or op-
press small enter~prises and will not operate to discriminate against
(f) T1hose engaged in other steps of the ec-onojmic process have
not been. deprived of the right to be heard prior to approval of
said Code.
FTior these reasons, this Code of Fair Competition for the Packa;ge
Medicine I~ndustry has beenl approved.
i rl ~~dm,~iniistrlator.
M/IAY 15, 1934.



T'o effect the po~lic~ies of Title I of the National ln-duLst rial Rtecovery
A-c~t, the following prov.'\isio.ns are establishedei a~s a Code of Fanir Com-
pet it ion for the 3Palckagne MIed.licin Ind lllustry,3 and shall be the sta ndlard~
of fair compel~itition for tluch Indus~r~y and shall b~e h~inding uplon
everyS member thereoc~(f.

See-rio 1~~. The tc;in "LPnckage Med~icine Ilnlluc ty "' as used3t herein

malnulfa(.tur. Iingr and/or in hlavinlg manul~fal.turedIc for1 him. u~nder his
own brand II and specif~;~iention, and~/or in imponrtingr in conisumerr pack-
agres for rsle,~11 andl/or in packag''ing~ fr~om bulk( maelstti~ u~nde rhis
name or bra:ndl, dtentifrices, moulrthl wnashes~ and medicinall prepara~~ -
tion,i, for thle jinternal1 or exterlnal use of humanlil being~S or other ari-
mals and primnariily offeredl~ for salet to the general pulblic usually as a
compIlete formula in packne-a-,r:~ with d~ir~ctlions for' use; and, suchl
reclatedl branches or -ub~llivisions us may fr~oml time to time be ilc~ludedl
under~'1 the prnvcl\i-ionl of this Codelt b3y the President~rt of th~e United
States~, after notice and hourin(! as he mlay precr;ibe.:".
PIl: Tilx 2. T'he term '" member of the Indutlry~l as usedct hereinl
shall mean any individual~l, partnerships,, u..neintionl, Ccorporat'~lion), orI
otherr form of cnterplrise tngaged~l in~ the Industry,'3. neither as an1 emr-
pl''\''r or on hris or its own. ,:I 1ni f.
GeCllnIT ;3. The term empllovee ?" as usedI lu:ri.iln shall m~an andi

p)enISated,~ ex'Scept a, membller of the, Indus11-try.

Il! Wulvll illlri (*I;!ployee'; iS '(lllc 'lol (nN Ifl. 5. The term "(establsi hinentlt as usedI~ here~inl .hal; l men,
:1ny\ plrlntl. labolratlia y, bus~illc.-. brr;nlch or i<~:1tzelnntmen threo'~f eng~aged!
in this Julus~.try.
SEcTrom (j. Th'e sterns "ABct and "A.1ml~inli.ctratlor` "'1 1I.I'I uryI heein
.shlrl Ir'i. man',I resptily, Title I of the Naiona(l Indn.-,trlialT ReI.COvery'

po.,.w.--ionsl of the I'nitc al Slet--.
SwImclls 8. Thet\ a ilrl*'primarly clistribu~tllr"l as weil~c hcreinl shanll

Industry sells its pr>o11thwis dirlectly'.


SECTION 9. LDeiifiorONS Of peri.iconnecl.--(a) ?The term. execultiVe ") as
used herein shall mean an emplllloy3ee solely responsible for the managnbe-
ment of a business or a r~ecognizedt subdiv-isionl thereof.
(b) Thne trmn "Loult -ide sale-mann "' shall mean a salesman who is
engaged~ not less than sixty (60) per celnt, of his wo~rkling ho~urs out-
sidle the establishment, or any bl~rnc~h thereof, by which he is
emp IlOy'ed.
(c) The ter~m "LIt~~ reserh usucl scientific w~orker "" as usedcl herein shall
mean an employee erncgagedi primarily in research and scientific work
where spec~ial edcal~tion or scientific training is essential..
(d) The term "outside service emnplfoy~ee" as usedrc heretinl shall
mealn an employee engagedC~ not less tharn sixty (60) per ce~nt of his
wror~king hours in de~live~r~ing, installing, and/or servicing merchandise
outside of the estalblishllnent, and~ shall include stable and garage
(e) The. term watc~hma~n as used herein shall mea~nl an employee
engagedl primarily in safeguarding the premises~r~ and property of a
member of' the Indlustry.'
(f) The terms firemen ") and engineers as used herein shall
mneanl employees enngaged pr1imarlily in the upkeep, preservation,
operation and repair of furnaces, boilers, engines, pumI1ps, comlpres-
sors, heating anld ventilating equipment, electrical generatingf plants,
or other m~ach~inery used for supplying heat, flight. ventilation, or
power to a bu~iding or plant of a member of the Industry; but do
not include such employees as por)Iters,) elevator oplerantors,~ cleaners
or operators of machiines uzsedX directly in a manufac~turingl process.
(g) The terml apprentice office worker "" as used hle~rein shall
mean an. office employee with less than six (6) monc-rths total office
work exper~ien~ce.
(h) The terms "beginnerlll-" or "~learner" as used~c herein shall
mean an employee wriith less than sixty (60) da~ys working experiencie
ini the Industry.

SEC'TION 1. No watchman, fireman, engrineer, or outside tserv\icie
employee shall be permllitted to work. in excess of forty-eighlt (48)
hours per weekr averaged- over a ccnsecultivv e two weeks" period and
in no event shall be permnittedi to w-or~k in excess of twelve (12)
dayys in. anly consecutive fourteen (14) day per1iod.l
SCEc~nox 2. N~o other employees except pharmal) ncists, chemists,
executives, and research anl sc~ientific wTTorler~s learning in exces~s of
thirty-five (35) dollars per'1 week~, and oultside~ salesmren. shall be
permitted to work in excess of for~ty (40) horJ~Is in any one w-eek
or eight (8) hours in any twenty-four (24) hour period, except as
h~ereilnafter prov-idedt in Sectio~ns 3 and 4 of this Airticle, and in no
ev-ent shall any such. emlployee be p~ermittedl to work in exc~ess of six
(6) day-s ini anry consecutive seven. (7) days' period.
SECTION. 3. (a) The maxsimnum hours fixed in the foregoing section
shall not apply to any~ employee on emenr~ge~ncy ma;~intenanccE or
emergrency repair w\ork involving breakdtowins or plrotectio-n of life
or poperty, but in any sulch special case such empllloyee~s shall be
paid at the rate of at least time and one third (11/3) for hours
wsor~ked in excess of the maximumn hours herecin provided.


(b) NTo emplIloye wo~rk'fin~ on continuous p~rocess operations shall
be permitted to wvor~k in excess of twelve (12) hourIs in anyv one day
or more than forty (40) h~ours~ in ainy one weekZ.
SECTION 4. Duringlt a ]peake period~ of not to exc~eedl eight (8) weeks
in, any calendar yea~r, any employee m~ay be pe'rmitterd to wpor~k
not in excess of forty-eight (48) hou:rls in any one wseek;; provided,
that hie shall not be perm''itted~ to wcork more'1 than~l eight (8) hours' in
anly twen~lty-four (24) hour periodl, and~ that hours in ecs.ess of forty
(40) per wteek shall be! compensated;fC~ fo-r at th4e ra~te~ of time andr one-
th-irdl (11/3) .
SECTTION 5. N~o employer1~3(1 shall kinow~ing~lyr permit any1 employee
to wrork; for anly time wvhichn whzen. totalled(_ w~ith tha~t. alreadyJ per-
formued with alnothler employer, or em~ployerSlj, ecs permitted herein.

PEC.TIOIN 1. NO cllliplOycC, otler tT1a-n :ippren-tice on~fce workers,
and beginners and learners, shall be? paidl at less than thre ratet orf
thirty-five (35) cenits per hour, except empl-loy~tees in the States of
North Carolina, Sourth CrinGeorgyia, FlriaTnnessee,
Alnhaml~a, M~icsi-.-ip~pi, A~~rkalnsa Louisiana, Oklnhac-ma andl Texas
where tl~ he mninimumn rite! shall be ~two and onelt Unif ("f.$) cent less
per hcluri.
.Crenuxil 2. No appren'ltice' Aim.ce woorkier, beg-innecr or learner shall
be paid less thanl Cighty (Cr)) p~er cent of thei rates-r sp~ecified in STectioni
1 of tChis Article. EmployeesS'' of this chel1s thus compenzsated. shall
not exeved~~- five (5) per cent of the total another ~ of empllloyesc in any

SECT'ION ;3. The wieekrly ensuspellre--tion ofi all enlloyees-cl~ as olf Juiner
16G,1033::;~,.400 not, be redc lcedt, notwi th s t n d(1in tha 1t ther hou,~rs workedc
in suceh empcr; loywt. may her hc'creby reelul'rl. Mretholds of adjustment
in hourly rates madne .sinl~ce Jner l 16, 13:: Shall be repocrtedt' to- the Corde
AuI thoi ty.
Mr< rmxl~~ 4. Female emiployees performling sub-taatllidllY the somell
wor~k as male emprloyetes shall Irevolv\e the minellt rtte! of pa~y as male

Hi-:r:allx 5. This articlee e tablli-; hes a mlinliumanl~ rate of pay! wh~fic'h
shall app,~ly irresp~ective of w~phethrelr an employel~c e is actully113 cocmpen-

mininua ?rShall be <1iil'"\chu'rlned and reemployal~ at a lower i crats oforti
the purp"IO"e of evacting the p~rm \isionsl of this C`ode~.
Otcr~~ HU'P p lYN II,RI OFIll lstal Cimillincap. Or other Illifillift IRY lse -
p'lalyedl on light wocrki at a wasr~t belown the~~ nljiininuanl lstab~lishe~d by
a Code!(. if the empllloyrc~ obitainsl- fromn thie stalte atuthority dlesignafted
by- th~e Unitedl SCftate Depart~nlmen of TLabor,r a ce~rtificatl e authorizing
.suchl p2er~son's emtploynment at such'7 wagesC' andl focr such hourlrs as
shatll he~ stalt(e in t~he celrtifica;te. Such :nuthor,~ity shnl bc giuided
b\ the instl~ructionsl of thel Unitcli States Diepartment~ of TLabor in
i~sanig ertficte tosuc prsos.Each emnployr-l salnl file month-


ly with the Codle Aulthority~ a, list of all such Ipersons emuployed by
him, shnow~ing the wages; paid to, and the maximum hours of work
for, such emplloy~ee.
AnywnsL V-G~:ExesL IIin in PI:(isioINS

SrecvroN 1. No perslon under sixtcen (16i) years of agfe shall1 be
employedl in the indlustry. No p~ersotn under f-ighlteenI (18) yea~rsli of
age shall be employedc at operations or occupaltions hazardous in
nature or a-~nngerous to health. Thle Code Authorityr shall submit
to the Admrrinistrator within. six (6) months after the effective date
of this Code a list of such. oper~atio.ns or occupatins.ns In. any State
can emplloyer Ihall be d-tenemed to have comrtplied w~ithl thnis prov'ision
as to age if he shall have on file a certificate or permit dully issuedc~
by the Aulth~ority in such State em~powerdc' to issue empllloyment,- l or
age cer~tifiedess or permits showsing that the emlployee is of the re-
qluiredl age.
SEcTION 2. Ill Cc~mpliaince with Section 7 (a) of the Act, it is
provided~t :
(at) Thalt, e~mployees~ shall ha~ve the right, to orgarnize4 and3 bargain
coall etivly trourh, r~ep~recsentatives of their own choosing, and
p'laye's of labor, or their ngents, in the des~ig~lnatin of such repre~-
entativ~es or in self-organlzation1 or inl other concertedt nctivities
for t~he purpose ofE co~llec~tive barga~ining or other mulltua~l aid or
p rot ect i on.
(b) Thant no emlo~~lyee and no one iceeking emlploymenllt shall be
required as a endt'll(IionI of cunlploymen t t~o join nny company union
or to reframi fl~rom joining, orgamizingr, or assiitingll a Inalr-1 orgami-
zatio~n of his own choos.,ingr and
(c) Tha~t employersH shall comliply w~ithl the maximum hours of
laborl, minimum Inrates of pay, and other condtitio~ns of emlnlo~ynwntl
alppro~ved or p'rescr1ibed~ by the President.
SECTION 3. No emplol-yer sharll rreclassif~y employees'"'1 or dultie~ of
oc~cupaftio ns per1formede or engage in any subter~~fugSe for the pulrplose
of defeating the prov\isio~ns of the Act or of this C~ode.
iEcrnowv 4. Every employer shall provide for the sa fety and health
ofE his emlploye~es at the pinee~ and dlurinlg the hours of thirt~l employ-
mrnt. Stan(dards for safety and health shall b~e submittedl by the
Code Author~iit~y to th~e A"diministrator within six (6) monlths~ after
the effective clater of this Cod~e, and upon approvl~c\ by the A~dminis-
trator suchl standards shall be~comee operantive as a part of this Code.
SCECT'ION 5. No prov~\isionl in tlis Code shall supersede arn Stalte
or Federal law which imposes~c more str~ingent requnlirememnts; on e~m-
ployers as to age of employees, wagn~Es, hours of w~iorki, or as to safety,
healt h, an nitary' or grenlral cond-iit ions, or i rcuIn rance, or fire protect ion,
than arelc imnpo~ed b this Code.
SEC'TIONl 6. All empllloyers shall ~ost. compnlelte encpirs of this Code in
conspicuous places necessiblel to employees.
SEcTION 7. The hours~ worked by any employees, except outside
salesmnen, during eachl day shall be cocnseccuntive, providled that an
interval not longer than one hour may be n110xved for each regular
mneal period, andi such inlterval not c~ounlted as parlt of the employee's


working time. AnyV rest period which mayn3 be given employees
shall not be dledu~cted fromrl :;uch- employee's wo~rk~ing tim~e.
Szcenioru 8. No homework sh-all be allow\\ed' in this industry).

ARTICLE: VI--One~r.\ xu.\noN Pow\En~s, AND DorrES OF THE COD)E

&<-.I(no 1. A C'ode Authority is herebyr consltitu~ted~ to admlinister-
this Code. This Code Authorit~y shall ons~ist~ of five (5) members
selected as hereii ndlor~I~ provided, and in addition thereto, the Ad\min-
istrator in hlis liver1tio~n may appoint not more than three addi-
tionall members, wTithlout vote and w\ithocut exspenset to the Indlustry,
to represent such groups or groviernmental agenllc~ies as he may03
SErcnoc~s 2. The industry mlrllembers shall be selected as follows:
Upon approval of this Code, the Code~ Commill~ttee presei;CntingC this
Code and the Ilndustriatl Advisor for this Indut'rycl3 shall1 select a list
of twenty (20) n~:unes~ of individuals idlentifiedc with this Industry'
and representative of thne various interes~ts therein, not more than
nine (9) of whomY shall be membrl~r s of anly one trade association.
This list, with the trade association and compan,~ry affiliations of each
individual opposite his mnalle, shall be prlinlted upon1 a, ballot, whichl
shall in addition bear upon its face fivTe (5) blankr lines and a c~r-
t~ificate of noent~lt to and compliance wTith~ thils Code. This ballot to-
gther with a copy of this Code shall be~ maliled~ to all membert~c1s of thfe
Industry whose names are(- kinow~n or canl be ascc1tertaine by diligent
search by the Code Commnittee. Ea~chl suchl mlemnber of the Indcustry
will be instructed that he must signify assent to and comllplianc~e with
this Code in order that his vobte shall be countedl. Eachl member of
thze Industryr signing7 the certificate of asent, and comlpliance will be
enltitlted to five (5) votes. The member of the Industry mayv sel~ct
the individuals for wh~lom he wishes to vote froml the printed list
upon the. ballot or by writing~ in such other Inam~es as he wvishes upo~n
the blankr lines provided therefore. Th~e ballot as so marked~t, -withn the
certificate of a.-.-en and conspllimwer dully Pigne~, willt be maliledl to
thne Code Committee, who in counlrting the! votcs will b~e gocver~ned by
thne following rules:
(a) Th~e T1CLcIndu trial Adviserl will aid and supervise in the c~ounting~r
of thle votes.
(b) Al list shall be madeil of individuals in thec order~ct of thle h~ighest
number of vc~tes rCceCived per individual. In ordert~i that no o~ne trad~e
assccinlt ion hall ha-ve morel~t than\ two (2) of its members)(1' upon, the
Code Anuthority, if the Coale Commllitteec shall1 find~ thait the( first fiv-e
individuals in order upo~n .-niid list includle morel't than twoc (2) memi-
bers of any onic trunk~ usIscciation, the Codel~ Commllittee .-hall delete
fral1 said list the names1~~ of the members.l~~ of sail t rade1~ ass(c~iation over
thne two receiving then hliLghe t rlother~~l of votes. and1 shall wr-~ite in

list (after thle first- five) wrho areI not Inl'llCinhers of .Caid tr'ade ass;Co-

(c) The indlividani;~ s wIho standlr as the first fiveC on thec li t. nfter
theg ablove pme"''nure has~ hoon~l enr~ried out,1 shall hei nlotifiedl and11 shall
take r ffilc us IloombernlS Of the C'cil0.1 Aluthoity inanalr~lintelly uIponl their


necep~tance of the offce. If any indII~ivduasl sh-all dcclinc or hie ~is--
quallified or unable to tak~e o~ffice, his name upon the list shanll heP
replaced~ b~y the-firs~t namne in lolrder on salid li t (after ^the 6.rst five)
wh~ich1 will not giv'e any onell trd -nitinmn ntwo (2)
mIlemler~s on thet Code Authority.
(d) The Code Commiittce with the appuvl~l-~ of? thc Irelu ~t! iin Adi-
vKier sh~all maknle sulch additiond~~l rules for the election as it deems
necessary; and~' speccific.tlly shall make~i such rules as w~iill enableI C the
elections to be comptletel within thri'ty' (Du) c7ays :Ifteri the effort~ive
date of this Code.
Pe~nding the comple-tion of the election of the indus~tryJ members''' of
the C'odle Authorit~y, th-e nineratersl of the Code Columiiit ti e w~cill no!t
as such indusrltryS mnemb~cr~s; prov,\ided1 that if such elec~-tionl is no~t
completed within thlirty~ (30) danys after thl--l effective date of this
Code, the Admrinistrantor or his dep~luty m1ay appoint five (5) indi-
viduals, ideniitifiedl with this Indn.try! andl representativ- e of th1e var~i-
ous5 intere'sts therelin, to no1t as the industry membersj:L' of the Code
Authority and to relieve the Code. Coininllittee of all I'uities hereinci
delegtedtc~ to it, andl to serve unltil such e'lection2 is comp~leted.
Thet members of the Code A~uthlori' rice tylle i ZCl\rll''allll ct.: sve for a term of one
year flroml the date of takling olffi~-ce. taufcittienad ne
of thle end ofP the term of the IinembersI. of the Code Aultho~rity, thle
CodeT Author~ity shall initiate andi carry out an e~lectionr of newv memn-
bersi fr the ensuing yarl~, so tha:t these newv members shalli take offiee
at -the endli of thLe. term of thle old members. '"The Code A-uth~ority
shall assume thle d7utices of the Codelt Comrmittee and~c the Adminiritra-
tionl M~embelr- 1 shall. assume the~ duties of the Indnll~ -trial Advisur~ in
carry1ing out said el-c~tionll by? the mel~thod,~ he~rc-inabiove set forth.
If a vacancy occurs in the illdo-trfly ne-mbel~'lcirli of the Codl Au-
th~ority., the remainingr industry memb-rsll shall elect a temporary
memberllc to fill such \r:unney unltll the next Ir' 1nlar1 election, p~rovided~
that this tempo~crary member shall1 be repres~c: l~ntative of IThe same trade
assoc~iat ionr or i n Iependentc interests fthat wer~e repru1e Iented by the.
member wh;ose plnee he takes.
CEC'TIONS 3. Af>Ibefst~' Of tile Tlulu try-!~j shall b~e (.nitled to, participated
in and~ sharle the bene~lt~fits of llhe nectivitil-- of the Corle Aui~thority andi
to par1Iticipalte in the election. of the nrnembe~crs thlle~ref by :I. en~tingr to,
their reasronabll e -har1e of the; expsl:'!1' of its amn(iiiist Iratio~n. S
reaso0~3nable 4hare It of the exes Ic1e! of n~hni n1i it ra1t in shal b e c 1termIiii nedl
by the~ Codle~ Authority, rrubjec~t to0 app>~roal byls thle Admlinistra~torI'
oni ther ba is of volume of buslcinees5- and .0'r such o~ther.l faI-tors' as maylS
be dlenemed Ilqu~itable.!~
SECTION 4. N~illll cOnltained in this Codel~ shalln rcan ~titut the~
members of thet Code!1 Au:thor~ity parltnlers for~ any punrpose. Nor
shall1 any mlem~ber o~f thec C'ode Anltinl.r~ity be liablelc in any15 malnneir
to anyon0ie for1 anyV act Of any13 othlet'Ilr na-mbef, officer~l, agent, or mpinvesl!cc
of the Code Authorclity. Nrc-i shiall ;rny\ m~embe~r~ of the Code Authorc~l-
ityv exec~Cising~ rea'onablle' diligencet -in the conducll(t. of hli;: duties~ here't-
under be liable to aniyone for any~ natiioni or cmilioni~l to act unlrri~ thie
Code, except for hris ow-n w-cillful mlisfeasance or Iclfnojnfusc e.,
SECTION 5. Each trade or indus~tiril aIssc~riatio nl d~irtc'tly or indi-
rectly par~ticip~atingr in the l ~ctl tic- n or ne~tivities of the Codre Auithor-


ity shall (1) impose no inequlitabile restrictions on. membership, andi
(2) submi~~t to the Administrator true copies of its articles of associa-
tion, by-laws, rules or .regulatlions, and all amendments when made
thereto, togrether~l with suchl other information as to mlembership,
organlization, and activities as the Administrat~o r mnay deemn neces-
sary to effectudelt the pu~rposes of the Ac~t.
.S;ECTION 6. In Order that the Code Auth~ority shall, at all times,
he truly rep~r~:~ellntaivle of the IndusrltryJ andl in other respects comply
with the procvisions.- of the Act, the Admlinistratorc~ may pr~ovide such
hearings as~ he may deem proper; and t~hereafter if he shall find
that the Code Authority is not truly representative or does not in
other respects comply1~1 with the ~provisionsi of the Acet, may3 ? require
ain apl'propiate? modification in the mnet~hod of selection of thle Code
Authority, or any sub-Code Autho~rity.
SECTION 7. Powers andl~ Duties.--The Code Authority shall have t.he
following 1"'owers' and duties:
(a2) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of this Code, mn accordc-
ance with the power~s herein granted, and to submit the same to the
Adm~linistra~tor for his approval together with. true copyies of any
amiendmlents or addition wThen made therecto, mlinutesi of mneetingas
when held and suchl other information as to its ac~tivities as thne Ald-
mninistrator may d~eeml ncc~essary to effect the purlposes of th~e As)ct.
(b) To obtain from mlembersl'i of the industry for usLe of thle Codle
Authority, for the Admi~nistrator in the administr~atio-n and enforce-
ment'lf of thle Code, and for the information of the Pre~sident, rIepor~lts
b:1.t.ll on periods of one, two or four w~eekls, or mulltip~les thereof, as
soon as the nriece sry rend~ljustmentllf within. the indlustr~y can be made
andi to give u. iistancet to membel)~ rs of theI indus~try in improvingr meth~-
od~s or in presrolib~ing a uniform systemI1 of acoulntinlg and replorting.
All individual r~eporlts shall be krept confidential asi to mnember~s of thle
industry and. only general summaries thereof mtay be published.
(c) Subll~ject to rules and regulations issledl by the Admlinistrantor,
to receive complaints of v.iolat icns of this Code, mnake~ inv-estigations
thereof, and bring to the aIt t ent ion of the Admi nistrant o r rcconunllen da~-
tions andll information relative thereto for suchn netionl n ~, in his dis-
cretion, the flc~ts warr1Iantf.
(dl) To use such trade namerintions andl otherl agenc~ies as it deems
proper for thle carrying out of any of its activities prov,\idedi for herein
and to pay suchl tllfrade asc~iation and agencies thre cost therleof, pro-
videdl tha:t nothing he1clrli shall relievec thne Codc Au\lthlorit~y of its
duties or responscibli~i ties under this Codel aInd tha~t. sulch tradle asso~cin -
tions andl agnc~ies :1hall at all times be- subject to aInd comply~~l with
the provisions thereoclf.
(e) To eno )rl'inatef i th(e admillni't ration I of thiS Colde w\ith Juc ~I1other
colle, if any, as may be1 rela~ted to t~he industry, o~r any1~ hrb-division
thereof, and to cdelega;te to any other1 adminIistr~ative. aulthlority, with
the approval;; of the Adm Iinist ra;tor11,.much proweri as wvill prom~uote joint
and~ harmonl(,liills nationl upon~1 ma~ltte"S of Conunon1(~ 1 interest.C~, prov)\ided

rt~Nrespon iilities undiler this Codel~.
(f) SubljeCt to) theC approval of thel Ad~llinini trator.l' tO sc'ere' an


the Code .Authority and. its activities; fl~-ro member s of thne Indu~str~y
assientingr to the Code.
(g) To cooperal~te with the A~dministrator in regu~la~ting ther use of
the National Recovery Admlllinistent~fion Code Incignin, solely by
those member~c1s of the Industry wholl are comlll'yingf with~ this Cod~e.
(h) To initiate, consider, and make reco~lnlcnl'~tendati for the mnodi-
fication or amndmetn t~l~n of this Code.
~~(i) The Code Aulthor~ity shall appoint representatIves to serve
on any Drug Industry Cor~dinatingP Council which mnay be restablishedl C
to be compusced~ of representatives frocm the var1iouls I:ndelt authorities
gToverningf codes which are dir~ectly related to the drug industry,
and to act as a planrningr and c~coordinatingr agencyi', anld as an agency
for-1 the_ itablization of e~mprloyme1~nt, for the e~ntire- drugr industry.
SCEC:-TIN 8. If the Admllinist rat~or shall (leterminejll that anly ac-tioni
of a, code authority or any agelin!y thereoc~cf may be unfair or un~jusct
or corntrarlly to the public intcleret,. the Ad~mi ni-t entor may requi re
that sucih action be suspended~ to afford an. opportunityT for inzvestign-
tionl of the merjits of such-1 action and further considera~tio~n by such.1
code authority or agency p~en~inlg final ac-tionl which shall not be
effective unless the Admninistr~ator, approves or unless he shalrll fail
to disap~prove after thirty (30) days' notice to htim of i~lcntention to
proceed with such action in its original or modified form.
SECTION" 9. CGlthrdl AduII;,.ln/Wit~iz e Proi's';ions. -In addition to
the information requrir~ed to be sub~mitted to the Code Aluthority as
set forth in this A~irticle membelllrsli of t~he Industry shall furnish suzch
statistical information as the Administrator mayr deemll necessary for
the purposes~-`' r~ec~ited~ in Sect~ion 3 (a2) o~f the Act to such Federall andr~
State agencies as the Annllinctiltratr may deir n- lte ; anid nlothingl in
this Codlie shall relieve any member of the Industry of any exiist~ing
ob~linti~n~s to furlnish~ reports to Government agencies.
An appeal fromll an~y action by the Code Authority n ifc~cting the
rights of any emloyer~-! l or employee in the Industry may be taken to
the Admi nli-;t rator.


Secrrox!. l 1. (a) A_ membn~er of the ~InduLstryS shall sell hli4; produ~c~ts,
cnunollidities or articles t~o primary dlis~tr~ibutc-r s on anl open price
bas~is that is fair to all, with Ithe samne a~llowa\nlces, terms and prices
as to produl~~cts, quantities orI tradeclc clas~sificat.iiona.
(b) The term "( open prices as used in this .cet~io~ln means a, price
list. w\hichl is publliched by each member of the Industry for thte
equal information of all primary dlistributc ors in the sepiyllnto or the
several classes of primary distribu~torrs, and wvhich- states all the pre-
vailinrr terms of sale forl the separate or the several classes of pri-
miar~y distributors.
(c) Compnll ntioc~n paid to aL primnary distributor by a member of
t~he Indlustry for cooplerantive adv1\ertisring, counter dli~plays, window
displays, aesmens etfor'ts, or anyV other s~ec~ial sales nativities, shall
be un iformn according to kind andi scolpe of services; rend~~lere, an~d not
on a basis of dliscounllts on quaantity pu~~rchases.~;;
(d) :Each~ member of the I~ndustry~ or his agent shall file hris curr-
rent price list with the Code Authority within thirty (30) days5. after


the approval of this Code. Each member of the IndustryS shall file
(by reg~iistered~c mail) anly subseqluenlt revision of such pr~ic~e list with
said Cdode Authority.
(e) This ed c~ion shall not apply to the sale of private brand prodl-
ucts on contract byr a manulllfnc.ture to~1 2 the owne~cr of suchl private
brand, nor to the sale of products for export, nor to bids~ submitted
to governmental units.
SECTION 2. No member of the Indutr~~ly shall usle advl\ertising,
wFPhether printed, radio, displayIJ or of ainy other Inature,, whlich is
inaccurate in anly mal~terliaL1l particular or mlisrepre1se nts merchandiselis
(including its use, trade mrllk, girade, qiuantity, size,! orig~in. mater~iu,
(conltentl preparation, credit termsllc, values, policies, or service~s), an-d
no member of the Ilndustry shall use advertising and/or selling
methods ctonecering emolrtive or thetrapeutic effects whrlich are false
and fraudulent.
SEE(IIno 3. No memb!l1:er of the Ifndu~stry shall use adver~~tisingg which
refers i nawara11te-ly in any mraterIial particular to any complete itor' or
his merchandise, prices, values, credit termsic, policies, or serne\ies.
ISEc.Irl x 4. No member of the Industry shall g~iveIth ~~'p'erm~iit to be
given, or directly offer to give, anything~ of valuefrthpuoe
of influenlc~ingb or rewardling the notion of any employee, agent or
replresentative~r of another in relation to the~ business of the emlployle r
of such employee, the principal of such arenlt or the r~eprlesientted
party, without th~e knowledge of such employer, pr'inclipail or party.
This rule! shall nlot be consltr~uedt to prohibit the free and ~general
distribution of articles comnmonlyr usedl for adver~ItisingP except so far
aIs such articles are actually usedt for ('onIna-rcia'ljl brlibery3 as hetrein-
above defined.
SErnroxr 5Y. The repacking or trallsferringl of any articl rfrom
the container of thle member of the Industry into another conltainerr,
and the off~r~ing- of such repa~clkagedc itemn for sale with inltenrt or
capacity to deceive the pul~-~rchase is an unfair trade peneicticet.
SEC.TION 6. The unauthorized u~se of a copy, counterfeit, or co~rlor-
able imitation of the tradclc-marl k, label, or idetltli fyin mIne I~rl or device
of th-e product of anrothler corpora'';tion, assoc,1iationl fi~rm~, or personC)I
which has the~ ttalrncey and capacity to miis~ulea purllchn-ersl~ or p~ro-
spective pu'' lr~charli is an unfair trade pralc~tic~e.
SCEenow., 7. No mermber of the Indutry~t' shall secretly ofrt'tr or mlak~e
any paymen"'t or allowance of a rebate, r~efiil, Columlis.-ion,l credPit,
Ilnltarned. C discount or ecscs.~; alc~:lowace, whetherll'l in thle form o-f molney
or otherwise, for the purpo e,~r of infineningIi~i a sale. nor 1hall a merni--
ber secretly exstcend to any1! rlCustomer' any slc~l ev i'\ervice or pr~iv-ilege
not extended to all cus~tomersl of the same1( cllassL.
.A I(II r rwn VIII-310mewane~\ ~(ss

1. This; Code andl all tht~e prvcisiolns the~reo~cf are exreslyl~~? mladle
subject; to the right of the Pres.identl in nercol~:lrance w\ith the ,1c,\i-
sinls- of .-betin(b) of Seet inni 10 o~f thle Not fional IIulust rliall
80coc(very .\rPt, frl'cli time to time to cnlcerl or Iinowlify 11~ any order

Act andit 1peiia;lly, but w~ithoult limita~tinnl. to the( r~iIht oIf theC
Prscidenit to cancel or miodlify his applrova-;l of tlihi 1'ode~ or1 anly coin-


2Z. This Code, except as to prov,\isio~ns .requllirc d byi! thie Act, m~ay be
mnodlifiedi on thne baslis of experiences or chang!es in c~iremulstanlces,
such modcif~nientio to be bansed upon. application to the ~Admuinistra~tor
and Su1ch notice and hearing, asi he shl~nl sp eciSfy, and to beccmelc effee-
ti\-e on approval of the PreIidenlt.


No provision, of this Code :-haill be so applied as to permit monollcpo-
lies or monopolistic practices, or to eliminate, oppre.,.s, or dliscrimi-
nate against small enlterprli-cl; .


Whereas the policy~ of the Act to increase pnilcohn-inell power will
be made more difficult of consummation if prices o~ goods andi
servsices~ increase as rapidly as wa gesr~ it is recognized that price
inrea~t~~si:es ect such as may be required to mleet individual costs
sh~ou~ld be delayed. B3ut when mlade suzch increases should, so far
as possible, be limited to actual increases in thle seller'~s costs.

1. No membn~ler of the ind~ustry3 shall use anll -ub~ter~fu~g l to frus-
tralte the spirit and intent of this Code, wiihich is, among other
things, to incre1tase; empllloymentlt to rem--ove obstr1uctions to com-
mlerce, to shortenI hours of work, and to raise wnes.r'
2. Exlcept as mayT be subseqjuentliy prov,\idedl in a specific or sup-
plemllentary~ export Code for this industry, the provisions of this
Codle nowV or hereafter adoptedl wcithl r: gad to prices, di'rcounlts,
ded~uction, allowsancesl extra-,C cnnsonor methods and/or
termls of sale, are not to apply to direct export sales in course of
export, i.e., sales destined ultimartely for export.

This Code shall become effective on the second Mo:1lnday after its
azpprov,\al by the President.
Approved Code N'o. -1.r3.
Registry No. (:05l~-2-32.

Illi 111 Ilill llIII IIIIII11 111111ll 11ilill l 11 II 1l1ll II