Code of fair competition for the tapioca dry products industry as approved on March 10, 1934

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Material Information

Title:
Code of fair competition for the tapioca dry products industry as approved on March 10, 1934
Portion of title:
Tapioca dry products industry
Physical Description:
p. 593-604 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Tapioca   ( lcsh )
Dry-goods -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Summary:
The term "tapioca dry products industry" as used herein includes the manufacturing, converting, and distributing at wholesale, all dry products composed wholly or chiefly of tapioca, except packaged tapioca sold for food through retail grocery and food stores.
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. 601-02."
General Note:
"Approved Code No. 328."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004939944
oclc - 63654757
System ID:
AA00006799:00001

Full Text



I


__


U.S. DEPOj-iTOWY


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


Approved Code No. 328


Registry No. 601--02


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


TAPIOCA DRY PRODUCTS

INDUSTBh"


AS APPROVED ONf MaARCH 10, 1984


WE DO QUR PART


UNIV. OF FL UB.
DOCUMEMIS DEPT,


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934























This publication is for sale by thre Superintendent of Documents, Covernment
Printing Office, Wasshington, D.C., and by district offices of the Bureau~ of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COhII\lERCE
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Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
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Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank; Building.
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Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, F'la.: Chamber of Commerce Building.
Kansas City, M/o.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadw~ay.
Louisville, Ky.: 408 Federal Building.
M~emphis, Tenn.: 229 Federal Building.
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Pittsburgh, Pa.: Chamber of Commerce Building.
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San F'rancisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.













Approved Code No. 328


CODE OF FAIIR COMPET~ITION1
FORl THEF

TAPIOCAS DRY ]P]RODUICTI1S PINDUSTR~Y

A's Approved on March 10, 1934


ORDER

A9PPRO\'ING CODE OFi FAIR COMPETITION FOR TH-E TAPIOCA IRT
PRODUCTS INDUSTRIAL
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industr~ial
Recoverg -Act, ap~roved June 16, 1933, for approval of a Code of
Fair Com~petition for the Tapioca Dry Products I~ndustry, anrd
hlearings having be~en duly held t~her~eon and the alnnexed report on
saidl Code containiing findings with respect ther~eto, having been
made and dir~eeted to the President:
~NOW, THEREF~ORE, on. behalf of the President of the United
States, I, Hugh. S. Johnson, Admninistr~ator for Industriall Recovery,
puruan toautorty estd i mebyExecutive Orders of the Pres-
ident, including Execitive Order N.64-,dtdDcme 0
1933, and otherwise; do hereby incorporate by reference said an-
nexed report andl do find that said Code complies ini all respects wscith
the pertinent provisions and will pr~omote the policy and purp~oses
of said Title of said Act; and do hereby olrder that said Code of
Fair Competition be andl it is hereby approved.
HUGnH S. JOHNSONu,
Admliniistrator for Iidustf~iria Reicoverly.
.Approval reommelnded`I~~ :
GEO. L. BERRY
Di~is~ionr A Imin~i~s-ftrator.
WASHINGTN, D.C.,
March 10, 1934.
415Y0 ---425-G3--- 31 (593)













REPORT TIO T3HE PRESIDENT


T~he PRESIDENT,
The WICihite H2ouse
Smn: This is a report on thle Code of Falir Complletitionl for the
Tapioca Dry P'roducts Ind~ustryS, the hearings on whlich was conducted
in ac~cordanlcc e with the provisions of the Nat~ional Recovery Admuin-
istr~ationi. The hlearin~g was held in the GrIidironl RoomII of thle Hotel
W~illardl on January 23.
PROVISIONS OF; THIE CODE AS TO, W\AGES ANDI HIOURS

Thiis Code specifies, with the exceptio~ns indtiented~, thant no em-
p'loyee shall be perm~ittedl to work in exYces;s of eighlt hoursd in any3
twenty-four hour period, nor in excess of for'ty hours in any one
week.
There arec exempted flroml the above prov'\isions:
(a) Travelinrg salesmen or persons emp~lloyed in a sulpervisor~y,
mainagerial,~ or execuitive enpacity w~ho eanl1 n~t~ less thanl $35.00 per
week.
(b) Empllloyeles englaged in emrgelt ncy maint~enance orl emergrency
r'epair work involvingf brekdowns or protec~tion of life or property~.
In such in~stances at least one and o~ne-thirdc times thle normal ra~te
shall be panid fr, hours'~ wor~ked in excess o~f forty-four hioursi per
weekr.
(c) Wa':tchmenll, wcho sha~ll no~t be p-ermnitted~ to work in excess of
fifty-sixr hours per wopeek and who shnall be allowed~ one dayn) oil in every
seven days.
(d) F~iremen~l and(. eng~ineer'~ \\who shanll nlot be perm'ittedr to w~orkl
in excessi of for~ty~-fourl hours1' inl any one wecek unlless compensatedd by)
payment. of onle and o~ne-third times thle normal rat~e for hours workedl
in excessi; there~tof.
(e) C'hauffe urs,, who shall not be perm~ittedl to, workl~ inl exslcss of
fort wecigh~t ho~urs in. any one week.
The provision of forty hours as a maxnimumll, in any one week;
and eight hours in any one dlay, shall not. ~pply for eight. weeks inl
each twenty-six w~eekl period. Therle is providred~, howeverl, thalt
ovectrltim w~orkr in these special periods halll nlot exceedl fiv~e hours
per weeck and that in such~l case, at least. onle anid one-thilrd timesc the
nlormlln rate shall be paid for hours wor~ked in exscess of eight hours.-
in anly twenty~-four hiouri period, or in excess of fority~ hours~ inl any
seven day period.
The Code speccifies thaut no mal~lle empll.,loye shall bre palidI lessi than
at the rante of 40 cents per hour, nor femal~le employee)~'e engaged in
light and non-hlnzar~dous work, such as~i wrapp~ing, p~ac~kaging, anld
Inbellinlg, less than at the rate of 35 cenltsj per~ hour,~I' per~ week, withl
the follow\\inrg excep-tions:
(594)







595


In clerical or office: work, no p~erson shall be p~aidt less than $14.00
per wfeek except that office boys and mlessenlgel rs ma not be paid less
than $12.00 per week but this class of employees shall not exceed
10%c of t~he total employees in the Industry, and that each plant may
have at, least one such employee.
The Codce provides that where female employees pe~rform11 sub-
stantially the samne work~ as male employees they shall receive the
samle rate of pany as male emp~~loyees.
There is pr~ovidedl by this Code, a Labor' Boar~d to consiist of two
members selected by t~he Clode Au~thor~ity, two members selected~ by
t~he Labor Adv\isoryv Boardc- of the National Recover1y Admiiinistrantio ni
andi a Chlairmain to be selected by the Admninistr~ator. 'This Boardl
shall conid~er and pa~ss upon" any alleged violation, dispute, or non-
obser~vance of thle Inb~or provisions of the Code. All decision shall,
if unanimnouls be final. In the event that. no agreement is preached,
the matter shall be r~efer~red to the alppropr'iae Governmnental
Agaency.
ECONOMIC EFFEC'TS OF THE CODE

The Code was pr~esentedl by the Tapioca, Products AssE;~intfion
wh'tich was o~~rgnized~ in 1_933 to permit the Industry to function
ulnder ,the terms.i of the NaJtional Industrial Recovery Act. In mem-
bership the Association represents, it is c~laimedl, over DB'"~ of the
volume of business in the IIndustry. There are eighteen, concerns
engag~ed in thle manufacture of tapioca dry p~~ccrodcts. With one ex-
ception, they appear~AI to be located along the A~tlantic Seaboard.
Sixteen of t'hese firms~i are members of the Association.
The Tapioca Dry Products Industry3 includes the mlanulfacrturing~,
convertinlg, and distribuitinlg at whnolesal~e of all dry p~irodc~ts coml-
posed wholly or chiefly of tapioca. It is claimned' that because of
special and desirable characteristics, tapioca products are used in
many industries. A United States Tariff Conulnis ion bulletin giv-es
their diistribution in 1928 as follows:
Formtls: : Percent
1. Pearl, flakes, riftings, seeds----------_------- ___ 6. 6
2. Flour ----- -- -------- -------_ ---- -- 13. 8
~Textile sizings_________________ 9, 7
Wood glues____-- ___-__- _____--- -- 33. 1.
Atllc~ieives,~ gums and dextrin______________ 27.3
M iscellaneous--- -- -- -- -- -- ------------------_ 9. 5
Thle aggrlegate capitall invesitmlent for 1933 wpas estimated for 1933
to be $4,997i,:30r9.32. Thne aggregate annual production capacity for
1933 was estimated to be 64,999 Long Tons. It has been. stated that
aggregate i;ales w~ere estimated at 54,825 tons in 1929,, 53630 tons in
1932, andl 38,994 tons in the first half of 1933.
In 1929 about 500 persons were emplloyed in the Tapioca Dry
Products Industry. Employmnent increased -until July 1, 1933 when
thie number of employees was 544, or nearly 9 per cent more than in
1929. Of these, about 290 were factory workers and the remainder
were eng~agedl in office and sales work. It is estimated that nrot more
thlan 10 per cent of the factory wa~ge, earners were females.
As a result of the 40-hour week, it is estimnateal that the numrber- of
factoryS emlployees will be about 6 per cent higher than in July, 1933.






596


The factory pa3:roll will probalbly be increased 4 or 5 per cent due to
the proposed mmimum wages andi additional emlploymlent.
:idUnemployment ha s appear ently o not beeni a problem in the tapioca
indutry alhouh te lngt ofthe av-erage working week has de-
clined.. If prodnelctionl is malilntined at, the level of July, 1933, the
adoptionl of the 40-hour werek will result in the emnploymnent of about
6 per cent more factory workers. This is in addition to the 9 per cent
incr~ease in. employment alr1eady noted betwTeen 1929 and Ju~ly, 1933.
The Deputy Adminiitr~ator in his final report t~o mne on said Code
having found as hlereinl set forth and onl the basisj of all the proceedl-
ings in this mal~tfter;
I find thant:
(a) Said Cocde is wvell de signed3 to p~romiote the pocliciesi andc pur-
poses of T'itle I of thie Natioinal Indusitriadl Reov-ery Ac~t, including
r~em~oval of obstr~uctions1. to thze free flowF of i~te~rstate andl for~eignl
commerce which tend~ to d~iminitsh the ~mournt theretof alndl will p-ro-
vide for the general welfarec by p~romloting~ thle organizatio n of in-
dustry for the purpose'~ of cooperative ac~tiolln among the trande groups,
by inducing~ and maintainingr united action of Inbor and~ managne-
ment Inlerltl adequate goviiiient nena sanctions andl supervisio n,, by
elimninating~ unfair competitive practices, by pr1omnoting thle fullest
possible uitilizationi of the present productive capacity3 of industries,
by avoid~ing~ undue restrictions of p~crodctio n (except, as many be
temporarily requiredl'~~), by increasingly thle consulnption of indlustr~ial
and agricultura1 ~cllproduts thr~c~lough icreing urc )"hasing power, by
r~educing~ andi reliev\ilgr unemployment, by imp~roving standlards of
Inbor, and by othlerw~ise rehabilitating~ indlustry..
(b) Said Industry normarnlly employs~ no~t more t~han 50,00~0 em-~
ployee; anld is not) classified by me as a major indlujtry.
(c) he Code as approved complie~s in all r~espects with the perti-
nent provisions of said Title of said Act, inll~cuding wTith~out limlita-
tion Suibsct-~ioni (a) of Sectioni 3, Subsectionl (a) of Sectioni r, andl
Subsection (b) of Sectionl 10 thereof: andl thiat thle appilicant asso-
cilutionl is an. indulrstr~ial association. truly repr~sellntaive of the afore-
said Industry; and that said as~soc~iation imlposes nlo inequitalble r~e-
str~ictions on1 admission to membership th~erein.
(d) Th~e Coder is not designedl to andl will not permlitt mn~opioliesj
or monopolistic practices.
(e?) The Code is riot designled to and w~ill not elimninate or ()))Ppres
small e~nterplirises and will not operate to dliscr~imin atee a~gainst themll.
(f) Those engaged in other steps of thle ec~onom~ic~ p~rocess have
not, been der~Pivedr of t~he rightl to be hlear~d pr~ior to approval~n of
said Code.
.For these reasons this Code has been alppr oved~c.
Respectfully,
HrGII S. JonIISON,
Aidmini~sfltrator.
M~a~ce 10, 1934.














COD)E OF FAIR COMPETITION FOR THE TAPIOCA DRY
PROD:C'TSj INDUSTRY

ARTICLE I--PURPOSES

To effect, the policies of Title I of th~e National Industrial Re-
c~overy Act, this Codec is established as a Co~de of Fair Competi-
tion for thle Tnpioca Dry Products Ind~ustr~y, and upon app~roval1
by the President, its provisions shall be the standards of fair compe-
tit~ion for such indlustry! and shall be binding upon ever~ly mnembler
thereof.
ARTICLE II--DEFINITIONS
The terml "' tapioca dryv pr1oducts industrS '" as used herein includes
the manufacturingrr convetrtng,, and distributingr at whlolesale, all
dry' products comp~osed whlolly or chiefly of tapioca, except pack-
ng~edl tapioca soldl for food~ throcugr h retail grocery and food stor~es.
The terml mnember of th~e industry includes, but without limita-
tion, any individual, p~artnershlup, association, corporation, or other
formn of enterprise engagredl in the industry, either as an employer
or on his or its own beh~alf.
The term employees as used herein includes any and all persons
engaged in the industry, however comp~lensated, except a member
of the indlustry.
Thle terms "ALLCt andl "Adlministrator as used her~ein mean re-
spectively Tit~le I of the Natio-nal Industrial R~ecovery3 Act, and the
Admlinistrator for Industrial Recovery.

ARTICLE III-HIOUR8

SECTION 1. 2li-Gzbif1mn Hozcrs.--No employee shall be permuittedl to
w~ork~ in excess of forty (40) hours in any one wrpeekr or eight (8)
hours in any twenty-four (24) hour period, beginning at midnight,
except as herein otherwise provided.
SECTION 2. E1ALCcepltions~; as to H2owers.--(a) The provisions of th~is
Article shall not apply to traveling salesmen, or to p~r~sons emn-
ployed in a sup~ervisory,) managerial or executive capacity, who earn
not, less than $35.00 per week.
(b) The maximumn hours fixed in the foregoing sections shall
not apply to any employee engaged in emergency maintenance or
.emergency r~epair work involving breakdowcPns or protection of life
or pr~operty, but in any such special case, at least one and one-third
(~11/) times the normal rate shall be paid for hours workred in
excess of forty-four (44) hours per week.
(c) Watchmnen shall not be permnitted to work in excess of fifty-
six (56) hours per week and they shall be allowed one (1) day off
in every3 7 days.
(597)







598


(d) Fir~emen aInd~ engileer~s shall nlot be p~ermnitted to wor~k in
excess of for~ty-f~our (4114) hlours in any1 onle wreek unless they shall
be compensatedl by payment of one and one-thir~d the normlnn rate
for all work in excess of forty-four (44) ho~r~s.
(e) Chaulffeurlsi shall not be perm~nitte d to wol~rk in excess of fo'ty'-
eight. (48) hours in anly one week.
SECTIONU 3. TIhe muaximumz hours~ fixed in Section I shlall not ap~ply
for eight (8) weeksi in each twenty-i si (26) weeks period, during
which timel o~vertimle .shlnl not exceed fCive (5) hours p~er week, pro-
vided, h-owever, that in. such case at least onelr and one-th~irdi times
thle no)IIIrmal rat shall be paid for hours workedl in excess of eight
(8) hours in an twenty-four (24) hour per~iodl, or for'ty (4(1) hours~
in any sevecn (7) day period~.
SECTION 4. Ew p"loyment by SCecral1( 1 Emi)ployers;j.-No~c emp lloyer
shall kn~owingly pDermit any empllloyee to work for' anly timle whichl
when totaled with that already performlle,l withi another eml-ployer,
or emllployers,'~ xCeeS((t(- the mlaximuml permitted herremi.
ARTIcLE IV--% IAGEs
SECTIONU 1. il3n1/NA /H 7iFllrf.--RO employee shlall bec p~aid less t.hlan
at the rate of forty (400) cents perl hour. but female employres en-
gaged in light anud non-hazardous w\o~k, such as; wrappingr pnek-
ugFingr.and labelting. may be paid not less than at. the r~ate of thlirty-
five (35C) cenlts per hour per! weekl of for~ty (410) houlrs; except aIs
follows :
SCEenurls 2. Clericall and( Offilce W1ork.-N~o p~ersorlrn emloyedl in clerl-
ical or office work .shlall be~ paid less than $14.00 p~er w-eek exvceptt
that offie boys1-- and mlc.~.Ciel'eger maly be~1 paid not less th~an $12.00O
per week but thant this clu~~ of employees shl~nl not ex~eedl 10%b of
the total number of emp~loyees~ in the Indlustry, bult that eachl plant
myv ha~ve at least one .suchl emnployee.
rSECTION 3. Olid/Neum(l~ 178#6 R818 by, Lorcalityl olr Oc~cupat~riol.-
Atlfter the approval of this Code, the Code: Author~ity may. present
for approval to the Admllini.4trator, after notice andi hearing. reccom~-
ine~nda~tions as to upwctard adjusltmenet s in m1inlinlmlll wagres in generl~n
or for sp~ecifiedl localities or oc~cupationi;, in ordercl to, effeet~~uate thle
purpos.'es of the Act.
SECTION 4. Pemalce Employ7)?ees.-Femaile employees performinga
substantially the same work as male emp~loy!ees shall receive the
same rate ofl pay as m~ale mpllloy'eeS.
SEC.TIONS 5. Hondrcircapp(ed Pel~rson.--A person whose learning can-
p~acity is limited because of ageor1 phyl~lsical or' mental handcicap may
be employed on light work at a wage belowf thle minimnum establishedl
by this Code if the employer obtains from the State Au~thlority des-
ignatedl by the United States Department o~f Labor, a certificante
authoirizmng his emnploymenten at such wagesg andi for suchl hours as
shall be stated in the er~1tificate.. Each emlployerl shall file wit~h the
Code Anlthcrity a list of all such persons employedt by him.
SEC:Trom 6. Pi';, s; rlrih Compen,2)satiion-Minimumlr Wa'ges.--T his
ar1tic~le e tab~lishets a minim-um rate of pay which~ shall applyl, irre-
spetctive of whether an employee is ac~tullyll compensaxted on a time
rn;to.: piecew-ork, or (-therl basis.







599


SECTIoN T. Wayee~C Above the Minitnuin).-I~t shall be the policy of
each mpnlpoyer in each es~tab~lishmuent to make fair and equitable ad-
justments o~f all pay sch~edu~les based upon channges in minimum pay
necesYita7ted by the foregomng paragraphs in this Article.
S~ECTION 8. Emlll~oyees shall be p~aid all moneyT due for services ren-
dlereLd in the form'll of negiotliablet cu11rrncy or chek writhlout, deduct-
t onn therefroml, except with their assent or as required by Fed~eral
or State laws.

ARITIC'LE: VJ-GENERABL LABOR PRO:VISIONS
SECTION 1. 0l~7tle Lab~or.-N~o per~sonl under isxteen (16) years of
agre shall be emloyedr~cc in thte industry. ~No p~erson under eighteen
(18) yea rsi of age shall be emplloyed at operations or oc~c~upations
whlich~ are hazardous in nature or dangerrou~s to henlth. The Clode
Authorit-y s~hall submit to the AdminiSf'traor within thirty (30) dlays
after the effective date hereof a list of suchI operations or occupga-
tiojns. In any State an employer shall be dleemedl to have comlphed
with this p~ovision as to age if he shall have on file a certificate or
permit duly Luigned by the A~uthority~ in suchl State empowered to
issue emlplo:yment or age cer~tifica~tes or perlmnits showing that; the
em ,loyeet is of? the requiredc ag~e.
SECTION 2. FFPidOt fTO973 th ALO .--Il compliance with Sect ioln
7 (a) of the Act it is p~rovidled:
(a) That employees shall have the r~ightC to organized and bargrain
collectively through rerpresentatives~ of their own choosing, and shall
be free from the interference, restranint, or coercion of employers of
labor, or thleir agents, in the designation of such r~eprlesentatives or
in self-orlganizat ion or in other cnclerted activities for the purpose
of~ ~ ~ f colctv bagi gor ot~he' multual aid or protection.
(b)! That no emlplo~yee anld no one seekiing employment: shall be
rrequ'ire as a conditions of emloymeJnlnt to jomn anly company union
or to refrain from jonungl, orgarmniing, or as~sistingalabr rgrua
tion of his own chloosing~, andc
(c) That employers shall comply with the mlaximum~n hloursi o~f
la~bor, minimum rates of pay, andl other conlditions of e~mployment
apprloved~: or prescribed by the President.
SECTION 3. HR/Gc~aja fcni' l CG ORf Empi~~loyces.-No.-N employer sh all re-
c~lassify- employees or dtlrties of occupations pe~rformled, or engagre mn
any other1 subter~fuge to dlefealt the purprloses or provisrionls of! the Act
or of this Code.
SECTION 4. Stancd~rl9'8 for SaIfetyf andl Helth rll---Ev\ery emplloyer
sha1 ll mke rea~sonab~le provision for the safety n elho i
employ13 ees at th-e place and during the hours o~f thd eirat e loy %ien
SECTION 5. Statefr Lar;(sl.-No prov'ision in this Cod~e shall superseded.
anly State or Fed~eratl law which imnposes on emlployers more stringent
requirements as to age of employees, wages, hours of w~orkl, or as to
safety, health, sanitary, or general w~orkting conditions,~ or insurance,
or fir~e~ protect-ionl, than are imnposed by this Code.
SECTION Cj. POsting.--All employers shall post comrlplete co~pie~s of
this Codet in co~nsp~iculous places necessrible to emliploylees.






600


ARTICLE `VI--ORGANIZATION, FOW'ERS AND DUTIES OF THE CODE

ORGANIZATION AND CONSTITUTIONS
SEC'TION i. Thetre' shall forlthw~ith be constituted a Code Authority
consi-tingb of sr\eve ('7) persons to be selected in the followringa
manner :
The seven (7) Itmembers whlo togerttler' with thle representatives of
the President shall comprise the Code Aulthority shall be the seven
(7) directors compr>~ising the Board of Dir~ectors of the Ta~pioca
Prodnects Association, who shall be elected at thc anlnual meeting of
the members of the Associa~tion for the termm of one (1) year and
until their successors shall be elected and quatlify~. Thle members of
the Association shall, by resolution, lec~ide, upon the description and
number of the several subdivisions of the indurstry comprised by the
membership of the Association, and each suchl group shall be repre-
r~esentedl by at least one (1) member on the Board of Director~s, whlo
shall be elected fr~om such group.
SEC.TION 2. IH additlOn t0 memrnbership as above provided, there
may be not mlor~e than three mIemlbers, witho~ut. vote, to be appointed
by the Administra tor.
SECTION, 3. Each tradle or industrial association directly or indi-
rectly participating in thle selection or activities of the Code ALu-
thority shall (1) inupose no inequitable restrictions on. membership.
and (2) submit to the Administrator true copies of its articles of
association, by-laws~, reg~ulations, and any anmendments when made
thereto, togethier -with suich other information as to mnembershiip,
organization, and activities as the Aidministrator may deem netcessa ry
to effectuate the purposes of the Act.
cSECTION 4. In Order that the Code A'uthlority shall at all times be
truly represellntatie of the industry and in other re~spects comply
with the prov,\isions of the Act, the Admninistrator may pres3cribe
suICh hearings as he may deeml proper; and ther~eafter if he shall findl
that the Code Author~ity is not truly representative or does not in
other respects comply with the provisions of the Act, may requhle
an appropriate modification in the method of selection and c~omplost-
tion of the Code Aulthcrity-.
:SEcTCTIN 5. 1enablllers of the indlustry, shall be entitledl to partici-
pate in andt share the benefits of the activities of the Code Author-
ity and to participate in the selection of the mnembers thereof by us-
rsenting( to and complying with the r~equir~ements of this Code and
sustaining~ their reasonable sharle of the expenses of isanns
te~ntio-n. Such r~easonable share of the expenses of adm~linistr~ation
shall be dletermrinedl by the Code Authority, subject to rev-iew by the
Administrator, on the basis of volume of business and//or such other
factorsl as may be deemled equitab~le.
SECTION 6. Nothingr contained in this Code shall constitute thle
mlembllers of the Code Authority parltnersY for any p)urpose. Nor shall
any member of the Code Authority be liable in any manner to any-
one for any act of any otherl mem~lber~s, officer, agent, or emnploy'ee of
the Code Authority. 'Nor shall any memIlber of the Code Authority,






601


exercisingr reasonable dligence in the condnet1) of his dutiesP hereundr,~
he liable to anyone for any action or omission to act under this Code, *
exYcept for hris own willful misfeasance or nonfeasance.
POW~ER5 AND DUTLES

SECTION 7-. The Code Author~ity shall have the following further
powers~ andi du~ties:
(a) To insure the execu~tionl of th~e provisions of this Code and
provide for thle comnpliance of the industry with the provisiolsj of
the Act.
(b) To adopnt, by-lawsn and rulle;s andJ rgcul~tio~n s for its ~r~ocedurelr~
and for the adminisit ratlonl an1d elforrCement of the ()ode.
(c) To obtain fr~om memnbers of the indusri~y s~uchl information andc
repor~ts as are required for the adminliistratfion of the Code. In addi-
tion to information required to be submitted to the Code Aulthocrity,
a~ll members of the Indlustry shall furn~ishl such statistical inlforman-
tion aS thle AdmlliniStrator may d~Ceeml nei'.cssary for the purpocses
recritedl in Section 3 (a) of the Act to such Fedleral and/or State
agencies as he miay' des:-ignate; nor shall anythirw( in this Code re-
lieve any person of any exsistingr obligation to furnish r~ep~orts to
any G~overnment agencies.
(d) To use such~ trade associaltio~ns and. other agencies as it deems
proper for the carrying out of any of its activities provided for
herein! povid:ed that no~thling~ her~ein, shall relieve the Code Authority
of its duties or rIesp~onsib~ilities uinder this Code.
(e) To mnake I~recnlunendations to the Admuini.tentor for the co-
or~dinat~ion of thle. admnin~.;tistai-,n of this Code with such1 other coc-des,
if any, as may be r~eintedl to the industry or affect; embers of the
1HOlust V..
(f) Tio securre fromnn mlembert1s of the industry ain equ~itab~le and
pr~opor'tionate payme~tnt. of the reasonable expecnses of manintaining
the C'ode Aulthority and its activities.
(g) To cooperate with the Adm-~inistra~torl in regulating the use of
any N.R.A. insignia. aolely by those members of the industry who
havlre assenltedl to, anrd are comprrlying with, this Code.
(h) To recommelndn to the Adlminiistratoro further fair trade prac-
tic~e pr'ovisions to goverln mnembcrs of the industry in thleir relations
w~ith eacrh other or with other industries and to retcommelndl to the
A~dminisitra:tor mleasures for indut~rlsial planning, includcingr s;tabilizn-
tion of employment.
(i) The Code Authiority shanll cause~l to be fornuirlated an acouonting~
systemn and methods of cost finding and/or estimanting capable of
use by all mlembers~ of t.he industry. After such system and metthods
havR~e been formnulated and~ applr~ovecd by the Admninistrator, full
details con~cermnng tlheml shall be madeit available to tall members.
Thereafter all mnember~s shall 11~eterml~ine and~/or estimate costs in
ac~cordlance with the principles of such miethocds.
SECTION 8. Tf tile ithnlinistrator shall determine that any action
of a code aulthocrity) or any agencyF thereof maIy be unfair or unjust
.,or contrary? to the public interest, the Administrastor mary require







602

that such action be suspe~nded to afford an opportunity for investi-
*rat~ionl of th~e merits of such action and further consideration by
such code authority or agency pending final action which shall not
be effective unless the Adfministrator app~roves or unless he shall
fail to disapprove after thirty days' notice to himt of intention to
proceed with~ s1ch actionl in its or~iginal or modified form.,
LABOR BOARD

SECTION 9. A labor board to consist of t wo mnemblers selected b~y
the Code Authority-, twvo memnber~s selected by ~the Labor Adv~isory
Board of the National Reco~very Admlinistrantio n anld a Chanirmanl
to be selected by the Administrator shall be for~med to consider and
pass upon any allegedly violation, dispute, or nonobservance of the
labor provisions of the Code. All decisions shall, if ulnanilnous, be
final. In the event that no agrteement is reached, the matter w\ill be
referred to the appr~opr~iate Governmental ag~ency.
ARTICLE VII[-TRADE PRACTICES

It shall be unfair competition for any member of ther Industr~y to
engago re mn any of the following unfair trade pr~actices~:
1. DFalse Billing.-T'o knowingly withhold from or insert in any
quotation or invoice anly statemelnt that makes it inaccurater in any~
material particular.
2. I,!arcuratef~ Ln7/7;,lln.--To brand or manrk or pack any goods
in any manner which is intended to or does deeiveP or mlislead pur-
chasersi with .respect to the brand, grade, quanlity, quantity, origin.
size, substance, character, Inature, finish, material content, or p~repalra-
tion of such goouds.
3. Ilac~cuilrate Referenc)-e to Competiit~ors, etc.--To publish adlvertis-
ing which refers~ inaccurately in any maiteriail particular tof any
com~lpe~titors or their goods, prices,. values, credit termsi~ policies or'
services.
4. Selling Belowo Cost.-After th~e estub~lishlment, of a1 sys.ctem of cost
ncoun~~tinlg for the Industry as provided in Artic~le V'I, Sub-Sec~tion
(i), no member shall sell th~e products of the Indlustryv at such prices
or upon such terms and conditions of sale as w~ill result in thle pur-
chaser pu~lrchasing~c such product at less than the cost thlereof to the
seller de~termllined~ in accordance with the aforesaid~ systemn of cocst
accounting, except to meet competition, nlot. instigated dlirectly or
indirectly by thle parnIty desiring to meet such competition buit to
meet thle ,r~ice~ of a competitor whose price dloes not violate the Code.
5. Th~~ereas ofe Lato Suits.--To publish or circulate unjustified or
unwarranted' threats of legal proceedings whlich tend to or have
the effect of hlarassingl competitors or intimidating~r their customers.
6. BribinU, Emnpl~oyees.-To give, permit to be griven, or directly
offer to give, anything of value for the purpose of influencing or
rewarding the action of any employee, agent, or representative of
another in relation to th~e business of the emp~loyer of suc~h employee,
the pl~rincip-n1 of such agent or the Itlreprestnente party. without, the
knowledge of such employer, principal, or party. This p~rovision
shall not be consltr~ued to prohibit free andl general dlistribution of







603


articles commllonly used for advertising except so fa as such articles
are actually used for commercial bribery as hereinabove defined.
7. In~terferene with An!other's Contr~acts.--To attempt to induce
the breach of an existing contrnet between n. competitor andi his
employees or c~ustomer or source of supply; nor shall any such member
interfere with or obstruct; the p~erformaznce of such contractual duties
Or SerVICes.
8. Coec~ioni.--To required: thalt the purchae or lease of any goodrs
be prerequisite to thle p~urchalse or lease? of any other goods.
9. Blarckli~stingl.-To join or participate with~ other members of the
industry wrho with such mlembler constitute a substantial number of
members of t.he industry or wtho together control a substantial per-
cent of the busineiss of any specific product. or products of the inldus-
try, in anly transac~tio-n known in law~p as a black~lisit, inc~lud~ingr any
practice or devicec (siuch as a white list), which nectomlplishles the
purpose of a blac-klist.
10. Gura Intee~in P~~;r !IZrices.-To guarantee prices agalinIst d7eeli ne.
11. Contra~cts.r.-To allows termilnation or modification o-f contracts
without completed com~npensation for any loss recsulting therecf~omn.
1". Mal~chinryl~ as induzcem~ent of Sale.-To give, rent, or sell any
new or additio~nal machlineryl) or equlipment to any buyl!er except that
a seller of dlry vegetable glue to the w~oodl wor~king~ industry may re-
p~la~ce ma~chinery~ or equipment hecretofor~e ins~talledr byT said eller with
ma1chinery? orl equripmlenlt of identical enpacit-y.
1;3. Freic Samp~riles.~i-To give a free samlel~r to any buyer in excess of
ap'proximately tw~o hundred (200) pounds.
14. Sa~lesr on C`Oniignmentljl.-T~o sell or ship goods1 on consigrnment.
15i. Invcoicis.--To dante invoices later than the date of shipment.
16., Termsli.--T o sell on any telll~rms ore favorable than 30 days
net or 25 ifteenith proxim~o.

;ARTICLE VII[I---EXPORT TRAD)E

SEC'TIONU 1. (':) NO0 p~lrov.isiol of this Code retlating to prices or
terms of selling, shlipping, or marke~ting,. shall apply to export tradl~e
or sales or shipmle~nts for export trade.
(b,) Subject to thle approval of the Codes Aiuthority, the exceptionls
establishle d by this article shall apply also to sales or shipmenclts of
manterials alctually. used in manufacture for export trade.
ARTICLE IXZ-31UDIF)ICATION

SECTI(om 1. Thlis Crode and all the prov,\i-ions thereof are explressly
made subject to the rights of the Presidlent, in accordance with the
provisions of subs~ection (b) of Section 10 of the Act, from time to
time to cancel or mnodify anyT order, appr~oval license, rule, or
regullation issued' ulnderl said Act.
SCEe'INo 2. Thlis Codle, except as to provisions required by the Act,
mlay be mlodlified on the bas~is of exper~inceli c or changes in ci~c~uml-
stances, such modifications to be based upon appllication to the Adl-
ministr~ator, andt such notice anld hearings as he shall specify, and to
become etffctive on appr~loval of the Preside-nt.







604

ARTICLE X--ATONOPOLIES, ETc.

No provisions of this Code shall be so applied as to permit monop-
olies or mlonopolistic prac~tice~s, or to elimnilnte, oppress, or discrim-
innte agaainst small entelrpises.
AnnTCLE XI--EFFECTIVE DATE

Thec provisions of this Code shall bsecomlle etfective ten (10)) days
after its approval by the President.
Approved Code N~o. 328.
Registry No. 601-02.
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