NATIONAL RECOVERY ADMINISTRATION
CODE; OrF FAIR COMPETITION
BULK; DRINKING STR~AW7
WRAPPED D)RINI~KI[NG STRAWV
WRAPPED TOOTHPICK, AND WRAPPED
IMANICURIE STICK[ INDUSTRY
UNIV. OF FL LIO.
U.S. DEPOT -
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code No. 331
Registry No. 407--08
AS APPROVED ON MARCH 14, 1934
WE~ DO OUR PARY
GOVERNMENT PRINTING OFFICE
This publientionll is for sale by the Sup~rileriLntedn of Dlc~uments, Governlmnt
Pr~1inlting Office, Washrxlingtrln, D.C., and by dlistrict esrtilac.s of thle Burea;u of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF TH[E DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Offtice Building.
Birmuingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customnhouse.
Buffialo, NT.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North W~ells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Comnmerce Building.
Detroit, Mich.: 801 F'irst National Bank Building.
H~ouston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Comlmerce Building.
Kansas City, Mo.: 1028 Baltimore ABvenue.
Los Anlgeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Illemphis, Tenn.: L'20 Federa~l Building.
Mlinnonpolici Minn.: 213 Federal Building.
New~ Orleans, La.: Room 225-A8, Customhouse.
New York, N.YP.: 734 Customhouse.
Norfolk. Va.: 406 ~East Plume Street.
PhiTladlphinli~ Pa.: 422 Commercial Trust- B-uildling.
Pirttburgh. Pa.: Chamber of Commerce Buib~lin2.
Portlandr. Oreg.: 215 Newv Post Office Build-ing~.
St. Louis, M~o.: 506 Olivce Street.
San Frtnciso, Calif.: 310 Custombouse.
Smithl~l, Wash.: SI00! Flederal Otheet Building.
Approved Code No. 331
CODE OF ]FAIR COMPETITION
BULK DRINKIHING STRAW, WRAPPED DRINKING
STRAW, WRAPPED TOOT'HPI[CK, AIND WRAPPED
MANAICURE~ ST~ICIK. NINDSTIRY-
As Approved on Miarch 14, 1934
APreoVINs CODE, OF FAIR COMPrIETIITIO FOR THPE BULK DHINKINGI
STRAW, TRAPPEDD DRINKINGI STRAW, VPRAPPED TOOTHfPICK, AND
TVJRAPPED JfANICUnE: STICKr INDU)~STRY.
An application havingr been duly made pursuant to and in full
comnpliane with the, pr~o-iiionls of TIitle I of thne NTational Industrial
Recovery Act, approl~vedl June 16, 1933, for appovl~c\n of a Code of
Fair Competitionl for the Bulk Drinking Straw~, Wrapped~ Drinking
Straw, W7rapped Toothpick, and W~rapped M~anicure Stick Industry,
anld hearllingS having been duly held thlereon and thne annexed report
on said Code, containing findcings~ with respect thereto, hatvinga been
made and directed to the President:
NOW", THEREFORE, on behalf of the President of the U~nitedl
States, I Hlugh S. Johnson, Admuinistrator for Industrial Recocver~y,
pursollnnt to authority \ested in me bNy Executive Orders of the
President, including Exec uti ve Order N.6543-~A, dated D~ecem~ber
30, 1933, and otherw~ise; do hereby inceorporate by reference said
annexedct report and do find that said Cod~e comlplies in. all respects
wlith the pertinen~rt provisions and1 will promote the policy andl pur-
poses of said Title of said Act; and do h~ereby order that said Code
of Fair Competition be andi it is herleby approved upon condition
(1) the provisions of Article VI, Sections 2 to 9 inclusive, insofar
as they prescribe a w~aitinga period betweenl the filing with the Code
Acluthority (i.e. actual receipt by the Code Authority) and the
effective date of revised price lists or revised terms andl conditions
of sale be and they are hereby stayed pnigmy further order;
(2) thne pr~oviion~ in Alrticle III, Scio1, Subsection (d) that
employees mayT wnork 48 hours in any one week shall be limited to
periods of seasolnal or peak demallnd not exceedinga twe-lve weeks in
()Section 13 of Article VI be and it is hereby eliminaltedc.
()Section 9 of Article VI shall not be cons-lt~uted to dlenyr in forma-
tion concerning filed prices to anly person ha~ving~ an interest therein.
Adtm~in;istraor for Indatr,i;l R2ecovery.
Crlr 1:(;E L. BIE1:RY,
Division Ad m ~i,,i. -t; aor.
Ma(/rch 14~, f1934.
REPORT TO THIE PRESIDENT
The W~lhite House.
SmR: Thlis is a. report of the hearing on thne Code of Fair Compe-
tition for the Bulk: Drinkinlg Straw, Wrapped Drinking Straw,
Wrapped Toothpick and Wrapped lManicure Stick Indlustry), conl-
dulcted in Washington on January 19, 1934, inl accordance with the
provisions of Title I of the Natioinal Industrial Recovery Act.
HI-OURS AND WAVGES
The Code provides a standard 40 hour week for factory workers
with a w-seekily tolerance of eight hours in peak seasons to be paid for
as overtime. The usual exceptions are made in regard to non-pro-
ductive employees. Office employees are limited to an average of 40
hours per week over an eight week period.
The minimum wage rn to for hourly paid employees is 40$ per hour
for males and 350 per hour for females. Ofieemployees will
receive a minimum wage of $16.00 per week.
OPEN PRICE PLA4N
Afn open price plan of selling is provided and selling belowm cost,
except to meet competition, is prohibited.
Provision is made for furnishing the Administrator with such
statistical data as he may requir~e.
ECONOMIC EFFECT OF THE CODE,
The Industry employed in 1929 approximately 200 persons and in
June 1933 about 125 persons. Based on the average! hours worked
in June 1933 and to maintain the level of production of that period,
the proposed. hour schedule of the Code would require an increased
employment of approximately 11%r.
The incrle~a s in thte total payrolls of the Ind ust ry as a result of
the Code will be about 20%.
The Deputy Administrator in his final report to me on said Code
having found as h~ereinl set forth, and oi-r the basis of all the
pr'oc~eedingas ini this ma~tter
I find that:
(a) Said Code is wcPell designed to promote the policies and pur-
po-esi of Title I of the National Industrial R~covery .Act, inc~ludingr
Irllmoval of obstructions to the~ free flowjC of inlter-tate a'ndl folcireig
commnr~ere which te~nd~ to diminish. the amou~lnt thecreocf a7ndl will.
provide for the general welfare by picromo~ting the orgaiilzation of
1Tndustry' 3 for the purpose of cooperative action among)1, thle tradeC
groups, by inducing and malintallining united asc~tionl of labor andi
1111l la ('I ll Iilt under ash -qua1: 1te g~rovernmen~tal sa1n iit ionI andX supe rvisi on,
b~y eliminainglllr unfair competitively~ practices, by pIromotling~ the fullest
po0ssible uitiliza~tion of the present p~rodutl:'ive! capacity of indus~tries,
by avoiding undue restrictions of pIrodurct ion (except as may~ be tenr-
porarily required), by in~creasingl the co~n-umptilton of indusitr~ial andc
agricultural products through inc~lc;~rlaSi purchasl~ling power, by re-
ducing and Irelieving unemp~c\~ ~loymnt by improvingr :tanda~l rdS of
labor, and byv oth~erwni.-e r~ehabilitatingg industry.
(b) Said- Indus~~try normally employs not mror~e than 5~0,000) em-
ployeS'' and is not classified by me as a major indo-ltry.'
(c) Thle Code as approvedl com~plies in, all r!prects with the pcr~ti-
nent provisions of said Tlitle of said Act, inlchlinejrrl with-outr limnita-
tion SusI1,c-tion (a) of Section 3, Sulbsect~ionl (a) of Se;cction 7 and
Subsection (b) of Section 10 thereof; and that the app~licaint group
is truly representative of the afor~emaid Industry.,
(d) The Code is not designed to and will not p~ermlit monopolies
or monopolistic practices.
(e) The Code Is not designed to and will not elimlinuate or opp~r~ss
small enterp~rics s and will lnot operate to discriminate against them.,
(f) Those engaged in, other steps of the economic process have not
been deprivedi of the right to be heard prior to appr~loval of said Code.
For these reasons this Code has been~r apprloved.
HuanG S. JanH SjoN,
MannH 14, 1934.
CODE OF FAIR COMPETITION FOR, T"HE BLIK~ DRIK-
ING; STRAW WRACPPED DRINKIN~cG .TRAW.- WTRAPPED
"TOOTHPICK~ AND1 W~RAIPPED, MAI~~'CZRE STICKI TDINDU-
I,'rapeitionj,, forl the above named IL.~.;itry? and shall brre 'in.Ellng
on ever n1-:iemer thetrrl.f
Anne11 LE~ I-Dyll~sn xins a
Th fcolilowingr: wo.rd~S ar~e uses~-.l in thL Code~t wifjth the nicat!ing
her-ein set fcl!rth:
st~raw- Div--nnB.Th businte cI aof wrapp~rin rirki-og straw1s.
wrapingt~ohpie-k- at) o wra'Pi'-gnumore ti.-k-
as:..<-r l~lat o n.- tru \teeze. trust-:-r ru t jin bankrrup IF.t.:7.= rcivrs. olri;
tslrIndu.~;l! try-1?IC-- or anys dii-hnthr and~ inlabor %perations.~I~ in. ziden
the nreto.r L
de praj- ty tjbbror atsai agent T.fr thelzln useor-~ Oin TSale
u.lr-cen ol ine, pr:Gail withh"~ jb il-:.e --. o ~ ~lr-ands~f
-he Brk-r "IC(Y: D~ivi a1.~ja~ r.ii0 A.~ fr Anynehoac i a aen flor1 che ina1
Evelyt with jobi tr Diviio:n B. Anynlier~d whorl~r acs s ger t
the ~na iteinn~ :ale tor r tailes rea -orsur .~~c crjobe recir
in aTte 1 -.nin!dn bsed upnth oa fctrrsrsecie ae
Jbtr A hoesle eaer buin oganzaio. b yig ss
AtRTICLcE II----RGANIZATION AND AL)1ISI~sTr.'IONo
SECTION 1. There shall forthwith be cr~eatedl a Code A~uthority of
the: Indlustr~y. It shall consistf of five elected- peCI~rsni: ,nrtogeth with
such person or peranslls as may13 be dlesig~nate d by the Adlminisjtrltor'.
The person or personsll~ so designatedl shall have no vote land shall
serve without comnpensa;tion from th~e Industry.
SECTON 2. The five ele~ctd persons of thelc Code Aulthority shllRl be
elected as follows:
(a) TIwo of such p~ersonsl~ shall be elc.tedl by a m~ajor~ity vote of
the nienlbllers of thre Indusitry on. the-t- basis off volll~lue of --nk-s,) each
memberll~l being entitled to a number of votes based uponl the average6'
yearly sales during thle preced''ingS five fiscal years as~ follows:.
(1) Each member with. avecrag~re sales of less than 110,000 --u~~ss
of straws a 3'1ar1 shall boe entitledl to one (1) -l ate~.
(2) Each memb!:l.er 'with avrage;lrr -;1k-s o-f! ao0ve 110.000 cases and
less than 20,000 cases shall be entitledc to twno (2) \cotes.
(3) Eachrl lmember woritth averagel sales of above 20,00)0 causesc and
less than 40.000 c~ases shall be( entitledi to four (4) votes.
(4) Each members w\Ith average .males~ of above 40,0300 Iases shall
be entitled to e~ig~t (8) votes.
In each of thne above instances a case shall consllist of 25,000 strawFis,
whether packed in bulk o~r wrlapped.
(b) Two of such persons shall be elected boy a mIajr~ityl) vote of
the members of the Induslt~ryT acrco~rdingr to number, each'f member
beino-r entitled to one (1) vote.
(ci The four members so clectedl shall erlert the fifth pelr.on.
T'he term fiscal year as used herein shall mean the twelve monthly
period beginning Octobe~r 1, andl ending Septanherle 30 followningr.
SEOTION. 3. In order thant the Code AL~uthor~ity shall at, all timelts he
truly repre~tsent~ative of the Ind~usitry, the Athnini t~tratr m~ay prIe-
scribe such hearings as he may dleeml proper andX theren fl~~tr,ifh
.-hall find the Codet~I Authority is not truly representativesf\~ of the
Industry, he may require an ap~propr~idet modtifica~tion of the muethnd~l
of selection of the Coale Au\~thor~ity.r
SI-:< nor S 4. The Codle A~uthor~ity is chal;rgedl generlrally wRith the duty~~
of admninisteringr this Code. If the Ashnliinistr Itar shall determiner l
that; any actionI of the Code Authority, or anny Ilgency\ thereof, mayI\ b~e
unfaiir or unjulst or ~ontra~n ry to the public int II et. the .\I Uin li t rato rI
may require that suchl action be suspenlllld d to affToIrdl an clpportunlllitY
for in~ve.-ti(ntionl of thle me~rits of such~l action andii further ('onslil1-
eraitionr byJ the Clode Authority or aIgecyl pcllling~t findil notionr ~whlichl
shall not be cfflt-eive unlessc the Admni istrao approve nl ly',; or unle(s-; he
shallI fail to disal-pprove'` after thirty (3) ays unctiCe to hlimn of inten'l-
tirin to prcedc~l with such ne nation in its original or modnlific4d form.
fSirnelc s 5. Thet expenses of admrinistering~, this Code Shall1 hec hornell
pro rata,, in. a~ccollnrdance with a formula, to be ;(lsloptedl Lv~ the Code1C
Aulthortylj 3, by all members1(1' of the InduStry wyho neclelt the honeifit
of the se-rvieces of the Code Anlt.hor~ity or1 other''\\ivi :I awen to thlis Code11.
SCEc.nolt G. TIhe Colle.10 Athorityr shall have power'" to inve-'ticrate
inembe~c r which ar~e or appear- to be conlltrary to, thec policy o~f th~e Arit
or which tend or mnay tend to render ineffec-tive this Code and to
report the same with reco~nunendatio~ns to the Aldminis;l~trator.
SECTION 7. TIhe Code Atuthority is hereby consltitutedc the agency
to endeavor to effect, by arbitral pr1olceed~ingsr- or other~iviso adjust-
ments of ennrtne~ts enlte~re into by mlemblers of the Industry whr~e
the costs of ex(c~uting-, such conltenelts are increased tlhrough'~ the appli-
cation of thne provisions of thne Act or of this Code.
SEETIOIiN 8. NOthing con~ltained~ in this Code shall constitute the
members of the Code Ahuthority partners for any~ purposes~f, nor shall
any l-irnember of the Code Authority be liable in anyr way to anyone
for anly act of alny other member, officer, or agentII. or employee of the
Code Authority; nor shall any member of thne Code Authority bSe
liable to anyone for any action or omission to act under the Code,
exlcllpt for his own willful misfeman;llce or nonfeasance.
ARTICLE III-os TorR LFTABOR
.S;TI:no 1. Em1ployee'(s inl the Industry shall not be required or
permitted to work hours in excess of the limits prescribed in the
(a) WaVtchinenc~: Fifty-six (56) hours in any one week but not
more than six (6) days in any seven (7) day period; or fifty-six
(56) hours in. any one week but not more than eight (8) hours in
any one day.
(b) Chauffeur~s, tr~uckdrivers, and their helpers: One hundred
eighty (180) hours in anly period of four (4) consecutive weeks, pro-
vided, however, that time workred in excess of nine (9) hours in.
any one day or forty-fivez (45) hours in any one week shall be palid
for as not less than time and one third.
(c) Enlgineers,; firemnen, electricians: One hundred sixty-eigh-t
(168) hours in any period of four (4) consecutive weeks, provided,
however, that time worked in excess~ of nine (9) hours inl anly one
day or forty-five (45) hours in any one week shall be paid for as
not less than timer and one third.
(d) ALll oth-er latborer-l., mIchanienti~l workers, or artisans employed
in any plant, mill, or factory or on workr connected with the opera-
tion of nelih pinlnt, mill, or factory~: Eighnt (8) hours in any one day
and forty (40) hocurs in any one wee~(k, provided, however, that
these ma~ximumr limits may~S be exr(cee('tdd for anly r~easorn at any time
provided~l that all timep worked in exce~ss of the maximums prescribed
shall be paid for as not less than time and one third, and provided,
fur~ther, that no employee shall be required or permitted to work in
excess of ten (10) hours in any one day or forty-eight (48) hours
in anly one week.,
(e) Em1ployees~ regularly engaged in a malnagerial or executive
capacity and their pe!rsonal secretarnies, foremen, and superv-isors,
r~ecetivingr thirty-five ($35.00) dollars or mor~le per week, and outside
salesmen : No limitation.
(f) All other employees: Fiorty-eight (48) hours in any one week
but not to exc~eedl three hundred twenty (320) hours in any period
of eight (8) consecutive weeks.f
2 See paragraph 2 (2) of order approving this Code.
Sa:(~Tllx 2. No limitation contained in said schedule shall apply
to employees of anly class whn~lcl erlngaed in. emergency repairs or
emler~enlcy maintenance wvorki occur sionled by breakdowns or involv-
ingr protection of life or property, provided, however, that all time
wTorked. in excess of the limitationls prestcrib ed in said sch-edule shall
ber paid for as not less th~an time and one third.
S:crwrc N 3. No employer shall knowingly permit anyr emplloyee to
w~ork: for any timne which, when totaled with that already performedcc~
writh another employer or employers in this Indu1~sf'31 trexCeeds the
maximum permitted hietrein.
A~RTICLE J}T r-101-'S:
SECITION 1. 1110 H~illnullul rtie Of Wv~gr Of any employee, other
than office or ielericarl employees, emlnfoyed in any p:l~nt, mtill, or fu-
tory, or on work: cncl rccted' with the opera';'t ion of any such p~la nt, mill,
or factory shall be as follows:
Ma~let labor, 40Q per hour
Female labor, 350 per hlour
lirooms 2. T~he minimum rate of wagei( of any clfilke or cler1ical
employee shllrl be as follows:
(a) Full-timne employees $16.00 per w eekc~l.
(b) Part-timle employees cov\Iere by the provisions of this Secctionl
shall be paidi at the rate of not less than 400 per hour.
,i; 'llax 3. This Article establishes a mllinimuml rate of pay" wh.ich~
shtall apply irre pecl'ctive of whether anl employee is netul~ally conspentI-
satedl on time-rate, pEiece-w~ork, or other beris.
Su,:rl.row 4. Female employees, performninga substaatidlyl the Lsomle
wnor'k as male employees, shall receive the sa mle rate of pa~y als male
emlployees.t'c The Code Authority s011l, within ninety~ (90) dy
after the effc~(t iv da~ ~te~ of this Code, file with thef Admrlinlit IitraOr a
description of all oc-rcupa~;tions. in the Inldustr~y in which both men~l
andi women. are employed.
,Cr;..cnoN 5. Thrle wag~ rates of all employee,3~cs shall be equ~itablly re-I
adtju~stedl but in no case shall they he~ dc~rea ed. W~, ithinr sixty (n
days after the effective da te hereof, the Codeli Authlority shllnl report
to thle Aidministrator the action f~ltake by all memberl~rs of the ]Indu tryl'S
uInder this Section for his approval of thle mellthdc~ of sc
SECTION 6. Office bo3s and. girls undrll~l eighrtree (18) years o~f agFe,
to the extent of no more than 55; of the total number of empllloyee~s
desc(r~ibed~ in Section 2 hereo~cf, InayS bie empll!.'loe at a wnge1 of noCt
less Ann1I 80%/ of the minimum pre lcr~ibed by said Section~, prov\ided,,
thatlt at lost~c one sulch off~ic~e boy or grir l may be employedu! c by each1
StonexI.~I 7. A per-onUI whose earning capacity is limited bel-aus~e of
agee or ph! sion;l or nlen~taI l hardicapll anly b~e emtployedt oni light wor~lk
at a1 ag;ie of not; less than 80"': of thc mlinlillnUm1 presCrlibedI by, thisj
Code, p-rovidled' thle ,State Aluthority or other~i agn cyi? des~ignatdcc byv
thec Unil~~te States Department of Labor~ shanll have issuedl~ a cer~titi-
fill, w\ithl the Code Authrllc!ity) a list of all suchr personsI1 employed,! c
ARTICLE V- -EN~ERAL LABOR PROVISIONS
SECTION 1. No pers'onI under sixteen (16) yen rs of age shall be
empllloyedl in the Industry. No person under eigfhteen (18) years of
age' shall be employed at operations or occupations which are hazardl-
ous in nature or danglberouls to health. The Code A~uthority shall
submllit to the Adlminlistrantor within sixty (60) daySs after the effe~c-
tive <~lteI of this Code a list of such opera1tions or occup~ations. In
any State an emlployer shall be dcmedl to have complied with this
provision as to age if he shall have on file a certificate or permit
dulyT signed by the authority in such State emnpo~wered to issue
employmntcl or age certificates or permits, show\ing that the employee
is of the I~reuir~ed age.
See(_liNo 2. Employees shall have the right to organize and bargain
c~ollec~tivelyl through representatives of their owvcn choosing and.
shall be free from the in~ter1feret~ nlce restraint, or coercion of employers
of labor or their agrents, in the designation of such representatives
or in self-organization or in other concerted activities for the pur-
posc o~f conllective bargaining or other mutual aid or protection. No
employee and no one seeknllg employment shall be required as a,
condition of employment to Join anly compllany union or to refrain
from joimnig, organizing, or assistmg~ an lor organization of his
own choosing. Employers shall comply with the maximum hours of
labr, inium ate ofpayand other conditions of employment,
approved or prescribed by tePeiet
SceTIno 3. No prov\icions.- in this Code shall supersede anly State
or Federal. l.w whlich~f imposesr on elmploye~rs more? .ctringecnt require-
ments as to age of employees, wages, hours of wTorkZ, or as to safety,
health, sanitary or general working conditions or insurance or fire
protection, than are imp~osed~ by this Code.
SECTION 4. NO emlployer shall reclassify employees or duties of
occupations performed or engagred in any other subterfuge for the
purp'1:ose of de-feating th-e purposes or provisions of thze Act or of
SECTION 5. All emnployersl. shall post copies of Articles III, IV
and V of this Code in conspicuous plaices nce-t~ iblle to employees.
SECTION. 6. Every1S emnployer' shall make reasonable! provision,1s for
the safety adl~ health of his emrployees at the place and during the
hours of their employment. Standards for salfe~ty and health shall
be submitted by the Cook!~ Authority to the Atlrininistratior wFith~in
six3 (6) monthlflS after the effective date of this Code.
Sunoc~r s 7. Th~e Code A-~uthority shall makle a study of conditions
in the Ind~ustry3 to de~termI~ine the feasibility of the adoption of a
shorter working w~eek and shall, within three (3) months after the
effective\c date of this Co:de, make a report of its findings~ to the Ad-
ministrat~or. The Code Authority shall also subm~nit to the Adminis-
trator wcithnin six (6) mnonthls after the effective date of this Code,
a plan for the stabilization and regaularization of emplloy~ment.
SE(rCEON 8. The manufacture or partial mnu~llfniture of any prod-
uct of the I~ndustry in homes shall be prohibited.
SEc?rms 1. The Code Authority shall, as soon. as practie~nble, form-
ulate a standardi method of ncecounrting~ and costing for thne I~ndustry
and submit the same to the Admi nistr1a tor W1', hen it shall havet been.
approvu\ed~ by the Admllinistr~ator, every member shall use an account-
ing and costing system which conforlms to the principles of, and is
at least as detailed and comlell~tte as, such standard method.
RSEC-rlow 2. The products of thle Indus~try3 shall be sold upon an open
price plan of selling.
SECTION 3. On or before the effective date of this Code, ~everyT mem-
ber shall file with the Code Authority a schedule of prices and terms
of sale for all such products or, in the alternative, shall. be deemed to
h-ave filed a schedule conforming in respect to price and~ terms of sale
with the schnedule at any time on file wcihich states the low-est price
and the most favorable terms.
Seenols 4. All such original schedules shall become effIectie. on
the effective~ date of this Code. All such schedules shall be in suchl
form as the Code Authority shall. prescribe and shall contain all in-
formation necessary to permit any interested person, to dleter~minec the
exact net price per unit after all discounts or other dedurctions have~
been made, whtherCflC pertaining to a single border, a commitment for
future delivery or a conltract.
SEcnrow 5. AI) revi~seed schedule or schedules, or a newF~ schedule or
schedules, or a notice of withdlrawal of a schedul~le pr1evioursly filed:
may be filed by a member with the Code Auth~ority at any\ timne, pro-
vided, how-ever, that anly memblnler who w~ithdlrawfs a schedule w\\ithou,~t
substituting a nlew schedule therefore shall be deemled to have filed~ a
schedule conformning in respec~'t to pr''ice and terms11 of sale with the
schedule at any time thllere fter on file which states thetr lowesct pr~ice~
and the most favorable terms. Subsc~requet to original schedullles
above p~ro~vided for, anly schedule or notice filed hereunderllCI shall be-
comc clffectli\ fivTe (5) days after thne date of filing, prov\infeled howI\-
ever, that an incre~n ed price may become effE~c~tive at sulch ea~lielr
tlah-~ as the member filing the same shanll fix.
SECTI[ON 6. The Code Authority shall prcmp~tly sup~ply" all.membersl
of the Indcustr~y, who manulllflcutue any particular producl~t. with~ cop~iesl
of all scheduless, r~evised~ schedulles, and1( not~iCes' of withdram;l, which
pertain to such prodic~t. TInun~edialtely upon I'.receipt of inlformal~tionl
relative to the wvithdrawali of a price for anly p~roduct.;l, ayInemberC'L
mnay file notic-ec of wRithdraw~al of his owFn price ~for the samne pr~od~c~t
effective as of the c;amel date as thle notice of withdr7~awia l of sulchl other~l
owse.Immediately~ onl retccip-t of inlformation that a schedul~le
then on file hasI beenll revitise, or that a newv schedutlltr has been. filed,
any inecrnhler may file a rev~ised schedule confol~nrmi~ng to price and
tentsll to thle sch-edule of suchl othlelr mlltembe andl tffec~t i e on the samie
lateII, or he may unl ify the Code Autihority that hc ndceptsa s h~Iis own
theshdle offrdl~ suhohr ebr In thze laitteri evelt,, he shall be
(1oused~~ to have filed a recvisedl s~ichedull~e conformiin~g to thle rev\isedl
schedulle of Su1Ch mother member.~C
PIr'.nncS 7. Njo ?-I.1uc .schedle'~I of lo-~ices~ and terms of sale filled by
aily InIIIIII' (11' o Ill rtrl'(' RO ailv Ilillle, sllull be uchl'l aS to permiiit the
salec of anly p,~roduct. at less than thec cost thereoccf to .suchl member de-
termine~ld in the manner provided in Section `10 hlereocf, provided,
however, that any member mnay by notice to the Code Authority
adlopt as his own a lowc~er price filed by another designated member.
Such adoption shall become automatically void upon the w-ithdr~awal
or revision upward of the price adopted.
SEC'TIO.N 8. Except in fulfillment of bona fide contracts existing
on the effective datef~ of this Code, no member shall sell or offer for
sale anly product of the Industry at a price less than as provided in
this Article. No member whlo shall have filed a price, or adopted
a~s his own a price filed by anor~thelrr member for any product of thle
Industry, shall sell .u(:h product for less than such price or upon
terms or conditions more favorable than stated in such prIile cwhed-l-
ule. No mlember, who shall have failed to file a price for any prod-
nort, shall sell such product at a lower price or on. terms mnor~e favor-
able than the lowest price and most favorable terms stated in any
price schedule for such product th-en on file.
SECTION 9. Thle Codle Authority shall furnish at cost to any per 'on
or per ansI1 entitled to them, copies of any~ price schedules which may
be filed. Ainy such price schedules shall be madelc available to such
entitled. person at thle same time they are sent to members.2 3
SECTION 10. Cost, for the purposes of this Ar~ticle, shall be deter-
mined plumentir' to the method of accounting and costing prescribed
as provided in Setction 1 hereof, as soon as such. method is adopted
and apprloved, andl theretofore pursuant to the method employed
by such r1n~emr subject to such preliminary rules as the Code
Authority shall from time to t inle prescribe wclith the approval of
S.ECTION 11. For the purpose of determining whether Section 7
her~eof hals been comlrpliedl withl, every member shall upon the request
of the Code Authority furnisht a desIgnlated agency of the Code
ALuthority in regard to cle edl transactions only, with complete infor-
ma~tion in Iregard1 to any quotation, order, contract or sale of any
product of the Inrdustry, including information as to :5pelCift-ations
lualnttitle ,price, conditions of storage, transportation or delivery,
terms of billing, cash or trade discounts allowed and other~l pertinent
facts ;~1:ielatin to rwhli quotation, conltrnelct or sale.
SECTIONI 12. Nothing herein cocntainled shall be can lltruedl to prevent
the disposition of d~i-tre\-~ Ilwelrhanldise required to be sold to liqui-
date a defunct or insolvlent bu ~inmJ- or of di (:continluedl lines, damagedbr~C
conds.1 or seconds, in such manner, at such pr~ices and on such tcrms
and condll~itons as the Code Authority and the Aidministrator may
SE~.cllux 13. Anly mnemiber contracting for the distribution of any
prodc-ll.t of the IIndustry w;5ith1 a distributor or sales agfent, who sells
such product both to jobbers and retatil-consumers, shall provide in
said~ contract that such dlistr:ibutor or sales agent, whnen mak~lingl sales
to retail-consumrers, shall not undersell jobbelrl. Ilf after due investi-
gration the C'ode Au~tlhorityr shall find that such provision has been
violated, the member whl-ose, distributor or sales agent has been found
to ha-ve violated said provision shall not give to such distributor or
sales agent any discounlt o9F his publlished jobber price.4
SSee paragraph 2 (1) of order alppr~ovinlg thiis Code.
8See paragraph 2 (4) of order approving this Code.
jDeleted as per paragraph 2 (3) of order approving this Code.
ARTICLE VII--SELLING BELOw REASONABLE COST
SECTI(N 1. When the Code Authority determinires thlat an emler-
gencyT exists in. this Inlu~lstry\ anld that the canuse thereof is dest~ruc-
tive price cutting, such as to render inetffc~tive or1 seriously endang~er
the mlaintenanlcce of the provisions of this Code, thle Code Aut~hority
may cause to be determrinedl th~e lowest r~easonable cost of the prod
ucts of thne Industry such detklrminationl to be subject t~o suchn notice
and hernringr as the Admlinistrator may Itrqu i re. The Admninistrator
mlay approve, disapprove, or mod0Cify theC determ'llinat ion. Th~ere-
after, during the period of the emlelrgency, it shall be an unfair tr~ade
practice for anly member of the Industry7 to sell or offers to sell any
products of the Indusltlcry, for which. the lowest reasonable cost has
been dcteirirmined, at C11h1 prices or upo~cn such terms or conditions
of sale that the buyerl wyill pay less therefore than the lowest, reasonl-
able cost of such products.
IStEnos 2. WClhen it appears that conditions hav\e chlangel thle
Code Authority, upon its own initiative or upon the r~equelst of any
inlteres~ted~ party, shall1 cause the deter~mination to boe rev~iew-ed.
ARTICLE VIII- REPORTS AND STATISTICS
SECTONr 1. Each mn~ll.embe shall pr~ep-are and file w\ith~ an imnpar~tial
agn~rlt, des~ignatci by the Code Authority at such times and in. such~
mnirrneri as it may pres~cr1ibe, such statistics, dta~t~ and informa~tio n
relating to plant en pnerity, volume of production, volumle of sales in
units andi dollars, orders1 received, unf;illedl orders,~ stocks on hlandl,
invecntory both~ raw: and finished~(, number of employees, wage rlqtes,
employee' c earnings, hoursl' of work and othler mattersI as th~e Codte
Authority or thne Adm I IinIit trator Inlny from,!~ t imei to' t im riequ'~lire. Any
or all information so furnisherd by any~ mtember shall be( subject to
chck~ling~ for the purposes,~ of ver~ifil.ntion. byr an emlilntinain of the
books, accounts and rcordsi~~ of suceh members 1 by~ anyl d~Ciinterested
accountant or aIcc~ountants or otherI quallified- pecr.onl or pers''ons design-
natedd by the Code APuthlority.
Sten?os 2. Except as otlierwfise provided in the Act or inl this
Code, all -.tati tics~, dat~a and information filed or requlired~ in accordl-
ance withr thle provisions of this Code shall1 be con~fidentiall and the,
ctatistic-, ata~tn and informalltionl of one1 nImbrllI .hull:l n-ot bec revecaledl
toaote eme.No Su1ch dflfat or informallt ior .ihall be pulblished~
except in combltination w~ith other similar data andlr in sulch mlanner as
to avoid the disclosure of confidcential information. Thne Codr~e Au-
thority shall ar~ranlge in such mannerc l as it miay dettellrmine for thle
current p~ublicntioni of In<1n.-tr~y statistics to I1uember('IS.
Seenullc S 3. Th1e Codelt Aulth< rity shall1 make such. Ilrepr~ts to t~hei
Atllininiit rator as he nInY firomi time to timel required.
SCccenlc x 4. In addition to inl~l'l~foraion1 requ~iredl to be submiiittedl
to the Code~ Anthnrlity. thereC shllnl be furlnishedl~ to Gove\~rnment
i2pcolr'j e4 I1II'`1 l nf i-f ic';l infOrrnlatic all RS 1 lililnist l't0or maBY (18011
ncelssary! for the purpa~cesc rec~itedl in Sectionl 3 (a) of tle Ac~t.
Nothing c(,ln~inind 1in thlisc CodeC shall relieve any! membellrl of any
exsi~ling( obliga"tionis to furnish reports to any13 Gove\rnnn-nt(. AgeCy.""
SECTION 1. No provision of this Code shanll be so appliedl as to per-
mit monopolies or monopoolistic practices, or to eliminatec oppress or
discriminate aga';inst smalnl e~nter1pr~ise.
AJ~RTICLE XIE--R wel.crr hs IE SrrIONs
SI1 TI(ox 1. Thte Cocte Aulthlority may, from time to time, pre.-enlt
to the Administrator reccoilnttnenni ons based on. condlitio~ns in the
Industry which wC~ill tend to effectuate thle operation of this Code
land the policy of the Act, and in particular along thne following
(a) For the establishment of additional rules of Fair T-rade- Prac-
t~ice.i for the Indu'stry and. for the mlodlification of its Trad~le Customs
and the enforcem~ent, thereof.
(b)Forthe stali-'hmelcnt of plans to Equalize"~ production with
demalnd~' so that the interests of the Industry and the public may
be properly served.
(nc) Forr dhe abln ith any't other inequality thant. may arise to
endnge th stbilty f te Industry and of production and
(d) For an incre.cue or decrease in the number of I~ndustry member's
of the Code Authlorityr and/or for a change in the method of choosing
SallowC~h 2. For the purpose of assisting the Code AL~uthorit~ies of
the Paper maznu fa n t I r i n g and/or Converting I~ndustries in the adj ust-
ment of all labor disputes and labor complaints arising within such
Industries, the Code Authority shall consider th2e advisability of
creastingr a Joint Industrial Re~lations Board for s-uch. Industries and
shall report its I~recommn dac~tions to the Administrator.
SECTION 3. ref~rOllinlenldations mnadle pursuant to Se~ctions 1 and
2 hereof whien approved by the Administrator, and after such hear-
igas he may prescribe, shall have the same force and effect as
oter prov\isio~ns of this Code.
ARTICLE XZI-TRA2DE PRACTICES
SECION: 1. Trhe followcingf are hereby constitu~ted T'radie Prac~tices
for the ITndustryr and failure to comply w\ith~ the provisions thereof
hallII be a violation of this Cnide.
(a) Membnlers of the Industry shall1 not practice deception in
regardc to that which is sold or its selling price by false or m~iisleading
description, sit~t~ementl record, or ~nd~isc.losed~i coniderat'~l i onI.
(b) Memberllcls shall refrain from dumping, extension of state1d
credit, and secret rebate~s.
(c) Mem~lber~s shall not wilfully injure by falsely defaming a com-
petitor's goods, credit, or ability to perform his corntrancts.
(d) MIemnber~s shall not wilfully mnduce or attempt to induce the
breach of a competitor's conltrafc~t.
(e) No member shall give, permit to be given, or directly offer to
give, anything of value fobr the purpose of influenemng or rewarding
the action of any employee, agent or repr~esentative of another in
UIvII'ERSITY OF FLORIDA
2,6 3 1262 08853 8029
relation to the business of the employer of such employee, the princi-
pal of such agent or the r~epr~esented party, without thle knowledge
of such employer, principal or party. The foregoing provisions
shall not be construed to prohibit free and general distribution of
articles commonly.used for advertising except so far as suchl articles
are actually used for commercial bribery as herein defined.
(f) No member of the Industry shall ship goods onl consignment,
except under cir~cumstances to lie defined by the Code ASuthority
where peculiar cir~cums~tanc~es of thef Indlustry require the practice.
(g) No mlemlberl of the Inidustry3 shall require that thle purchase
or lease of anly goods be a pr~erequi.- ite to thie plrc~hase or lease of any
(h) As applicable only to the products of D~ivision A of the
(1) No miembler shall take any orders or mlake any sales contract
for a period ecec'edino- six (6) mnonthis and in no case wTith a shiipping
date, initial or extencted, beyond September 30 nlext occurring.
(i) The following addlitional provisions shalll apply only to the
products of Division B of the Industry:
(1) Mlembe-~rs shall makre a specific charge for sk~etc~hes, drawfings
and printing plates, excepting where the cus~tomrc l hasl had. especially
imprinted goods before fr~oml a mI~llembe.
(2) No member shall take ain order or cocntrnel~t to cove.cr requ~lire-
m~ents for a period of more thanl twelve mon)~ths~.
ARTICLE XII--GENERAL PRO.IslONSS
S~ECTION. 1. I~f any mlembller is also a ilc~luber of anocthier indlustr~y, the
provi ionls of this Code shll:' apply t~o and affect onlyl that par~t of
h~is business which is incrluded in this Indulstry.
SECTwt N 2. Any work or prlcessi incidental to andl carried on by a
member at this planlt, as a part of the mnanu~fneture~ of anly product
of the I[ndustryr, shall be r~egne~ded as a part of this Industryv.
SECTION 3. Such of the provisions of this Code( asp a re nlot required
to be included there~in by the Act, nIny1?, with theC aPproval:1 of the
Administrators,, be mod~ified- andi~ eiminaiitedi as changesc in circumu-
stanicec or experience~ may indwac~te.
rSE(TIOIN 4. TllS COde! and all the pr1ovision!s thlereof are exprlessly
madll~e subLjet~r to the r'ight. of thne Pr~etident. in necorda~nc e with the
provisions of Section 10 (b) of the Act, from timeP to time to cancel
or miodify anly border, apprloval,, licenses, rule or~ reula~tioln issued
under Title I: of said Act, aEnd sp~ecifku~illy, but. without limitations
toteright of the Pres~i ent, to cancel or mod~ify his approv~alo
this Codet or any co~nditio~ns imlposed by himi upon hiis approval
SI:'TCrN 5. ThiS Code~ shall hecomeii efec~tiv-e onl thle secondii Monda~y
after the da~te upon. whlichi it shl~nl be appr~oved by: thle Pr~esidenlt of
thle United~ Sctates.
Apprnl~lv(Ls Code No. 331.
RegiLtry No. 4074i~.l8.