NATIONAL RAECOVERY ADMIINISTRATION
CODIE OF FAIR COMPETITION
AND LACQUE R MANUFAC TURING
AS APPROVED ON OCTOBER 31, 1933
For sale by the Superintendent of Doculments, Washington, D.C. -- Price 5 center
Approved Code No. 71--Reprint
Registry No. 619--1-03
WE DO OUR PAlRY
INCLUDES AMENDMENTS Nos. 1-11
U.S. DEPOS4TCP'' varpFD STATES
GOVERENIME~NT PR]INTING OFFICE
WCASHINGTON : 1984
This publication is for sale by the? Superintendent of Documents, Govermnent
Printing Office, WTashington, D).C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
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Approved Code No. 71
COD)E OF FAIR COMPETITION
PAINT, VARNISHA, AND LACQUER MANUFAC-
As Approved on October 31, 1933
An application having been duly made, pursuant to and in full
compiane with the provisions of Ttle I of, the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Paint, Varnish, and Lacquer Manufac-
turing Inldustry, and hearings having been. held thereon and the
Administrator having -render~ed his report containing an analysis of
the said code of fair competition together with his recommendations
and findings with respect thereto, and the Administrator having
found that the said code of fair competition complies in all respects
with the pertinent provisions of Title I of said APct anid that the
requirements of clauses (1) and (2) of subsectionl (a) of Section 3
of the said Act have been. met:
NOWV, THIEREFORE, I, ~Franklin D. Roosev~elt, P'resident of the
United States, pursuant to the authority vested in me by Title I of the
National Industrial Recovery Act, approved June 16, 1933, and other-
wise, do adopt and ap~prove the report, recommendations, and find-
ings of the Adrnlinistra.tor and do order that the said code of fair
competition be and it is hereby approved.
FRANKLIN D). ROOSEVELT .
AFpproval recommended :
HUGHF S. JoINwson,
THIE B~CRIE HOUSE,
October 31, 1933.
REPORT TO THfE PRESIDENTIAL
The WVhite House.
SmR: This is a report of the hearing on, the Code of Fair Compe-
tition for the Painlt, Varnish, and Lacquer ~Manufacturing Industry
conducted in Washington on the 26th of September, 1933, in accord-
ance with the provisions of the National Industrial Recovery ~Act.
EcoNomaC EFFECT OF THE CODE1
Paint is a manufactured product used in part for new production
of industrial and consumers goods, anld in part as a maintenance
material. The quantity required for the former purpose bears a
positive relation to general manufacturing activity. For the latter
purpose, where the need may be deferred, the current financial con-
dition of the owner of the property has considerable bearing .upon
the quantity of paint used. Fltor this latter purpose also t~he cost of
the paint is a factor of considerable importance.
The quality of paint in general may be judged by the effective-
ness of the covering produced, either as protection or appearance, or
both, and the life of that covering. These qualities are not only a
function of the ingredients of the paint, but also are a function of
the method of preparation of the ingredients and their mixing. It
is possible, therefore, to produce paint of varying degrees of quality
through a wide scale of costs, and the public is not necessarily in a.
position to judge quality other than by price. As a consequence of
this condition, many practices involving the sale of cheap paint have
grown up in the Industry, which, coupled with the financlil situation
of the last few years, has tended to cause demoralization.
The Code, as submitted herewith, contains in Part Two an un-
usual number of trade practices which are considered detrimental to
the Industry and consequently are prohibited. In the form in. which
they now stand they meet the approval of the Consumers' Atdvisory
The provisions contained inl this Code as to minimum wages and
maximum hours are generally in line with approved codes employ-
ing labor of the same quality and under similar conditions.
T'he reduction in thne number of hours from 47.5 of Jrune, 1933, to a
maximum of 41.2 average for a six months' period provided by the
Code will mean an increase in employment of approximately 25 per-
cent. It is estimated that at the low point of employment there were
approximately 18,000 workers in. early 1933, and that the provisions
of this Code, even under present conditions, should increase the
number employed to nearly 25,000.
The wanges set up in the Code will increase thre pay of only about
20 percent of the workers in the Northern area and 30 percent of the
workers in the Southern area, but the resulting (increase in purchas-
ing power, when coupled with the increase in number of workers in
the I[ndustr~y, ~ill be material.
The Administrator ~finds thate--
(a.)'The Cfode as recommended complies in all respects with the
pertinent provisions of Title I of the Act, includingP~ wiSethout limt
tion, subsection (a) of Section 7 antd subsection(bofecin1
thereof ; and that
(b) The applicant group imposes no inequitable restrictions on
admission to membership therein and is truly representative of thre
Paint, Varnish, and Ltacquer Manufacturing Industry ; and that
(c) The Code as recommended is not designed to promote mo-
nopolies or to elimninate or oppress small enterprises and will not
operate to discriminate against them and will tenmd to effectuate the
policy of Title I of the National Industrial Recovery Act.
I~t is recomnmenlded, therefore, that this Code be immediately
HUGIIH S. JoHNSON,
OCTOB3ER iL? 1938.
CODE: OFi FAIR COMPETITION FOR THE PAINT VTAR-
NISH, AND LACQUER MANUFACTURING INDUSTRY
ARTICLE I -PURPOSE
Fo'cr the purpose of effectuatingr the policy of Title I of the Act of
June 16, 1933, known as the N~ational Industrial Recovery Actl the
followingr provisions are establ.lish~ed as a Code of F~Eair Competition
for the? Paint, Varnish, and Lacquer Mlanufacturing Industry.
ARTICLE II DEFINITIONS
The termn T'he Industry means all persons in the continental
United States engaged in the manufacture of paint, k~alsomine and
water paint, varnish, including shellac -var~nish. lacquer, and kiindredl
products, including putty, semnifinished base materials for lacquers,
thinners, and diluents (whr~en such semifinished base materials are
sold or offered for sale in compectitionl with the finished products of
this Industry), liquid and plastic roof coatings and roof cements, and
artists' colors; and/or such branches or subdivisions thereof as may
from time to time be included under the provisions of this Code?,
provided that if any mem-ber of the Industry also manufactures prod-
ucts of any others industry, the provisions of this Code shall "bapply
only to that part of his business which is includ:edl in thisCoe
The termz Export Trade means any business trans~c~ted with any
purchaser for shipment of products of the Industry outside of the
continental l Unitejd States.
The term employee as us~ed herein inchurlles anyr person engaged
in any phase of the Industry in any capacity in the nature of em-
ployee irrespective of thae method of pay-ment of his compensation.
TIhe term "L employer as used heclc~rei includes anycone for whose bene-
fit such an employee is so engag~red. The term member of The
Industry includes any nu111Inu facrturer who shall be ub~ject to this
Code. The term "i member of the Code includes any member of The
Industry who shall expressly signify assent to this CIode. The term
"A~ssociation herein means the Amer~liCan1 Paint andi Varnish Manlu-
fincturers' Association, Inc., and the National Paint Oil and Varnish
Association, Inc., or their successor or successors. The term "Asso-
ciation ]Headquarters menc;ll- the office ma~intainedc' Jointly by the As-
soeintions at 2201 New Yiorkr Aivenue, NWC., Wash~ington, D.C. The
term ". Trade Sales as used~ herein means all sales to jobbers, dealler,
painters, autlomlotive retfiniishine shops, and sales made directly to the
consumer, with the exception of such sales as are hereinafter defined
as Industrial Sales." The term "L Industr~ial Sales as us1ed' hleretin
means all sales to the following classes of buyers, covering products
of Thie Ind~ustry\ used by such buyers.- on their products or for the
~finishing of their equipment and for the palinting, upkeep, and
maintenance of their plants, equipment, tenements, and for any other
Industrial plants of all kinds (such as automobile manufac-
turers, implement manufacturers, furniture manufacturers,.
Transportation companies (including street railways, bus, and
air transportation companies)
Car and locomotive builders
Public service companies
Oil refiners and pipe-line companies
Steel manufacturers and those who fabricate their own prod~-
Bridge builders and bridiges
Coal or other mining operations
Steamship lines, shipya~ds, wharves, and dockrs
All departments of any State, County, Municipal, or other
political subdivisions, but only for th~e following products:
traffic paint; road paint; products used on bridges, trucks,
and m~ach7inery; automobile license tag coatings; or mate-
rials for finishing furniture, or any other products manu-
factured in prisons or reformalltories. All other business
from State, Ciounty, Mrunicip~al, and other political subdi-
visions, such. as products used on buildings, institutions, etc.,
to be class.~ified as "L Trade Sales."
~All Departmnents of the Uinited States Government, regardless
ARTICLE III--INDUSTRY L~aw anD EFFECTIVE IIATE
On and after the fifteenth calendar day after the President of the
United Stat~es shall have appr>1ov-ed this Code, the provisions hereof
shall constitute standards of fair competition for The Industry and
shall be automatically binding upon all members of The Inldustry,
except that all articles of this Code which are included in Part 2
hereof shall not apply to export trade.
AnRICLE IV COLLECTIVE BARGAININGJ
In accordance with Section 7 (a) of the Act of June 16, 1933,
known as the National Industrial Recovery Act, it is agreed: (1) that
employees shall have the r~ight. to organize and bargain collectively
through representatives of thleir. own choosing, and shall be free from
interference, restraint, or coercion of employers of labor or their
agents, in the designation of such representatives or in self-organiza-
tion or in other concerted nretivities for the purpose of collective
bargnaining or other mutual aid or protection; (2) tha~t no employee
and no one seeking employment shall be required as a condition of
emplloy~ment to join any company union or to reframn from jolming,
orgamizmg, or assisting a, labor organization of his own choosing;
and (3) that emplloyers~ shall comply~ with the mn ximlum hours of
labor, minimum rantes of pay, and other conditions of emplloyment
aypproved or p~rescr~ibed by the Presid~ent.
ARTICLE V-M RIINwasIT WAGES AND RIA[XIMUM Houns
(a) No emlployee engaged in. accounting, clerical, office, or delivery
service in any office or in any other place or manner, excepting em-
ployees in retail stores and excepting outside salesmen, shall work or
be permitted to work in excess of 40 hours per week for 20 weeks
and 48 hours per week for 6 weeks in. any 26-week period.
(b) No factory or maechanical worker or artisan shall work: or be
permitted to work more than. 40 hours in one week nor more than 8
hour inanyone day; provided, however, that during any 6 weeks
of this Code) employees may work not more than 45 hours a week
nor more than 9 hours in any one day, with the exception of (1)
supervisory staff (including foremen), (2) maintenance workers,
engineers, and firemen, which excepted employees may not wCork in
excess of the maxrimum hours stated above except by payment of one
and one-third rate for overtime if such employees are compensated
on an hourly basis. Each week during any 26-weekr period shall be
considered as a complete unit of employment for the purpose of pay-
ing for overtime to excepted employees. If an exzcepted employee on
an hourly basis works more than 40 hours and not more than 45
hours in any one week, the employer shall compensate himt at the end
of said w~eek for the hours worked in excess of 40 hours at the extra
rate or shall declare to the employee that such wcleek will be considered
as one of the 6 weeks in which a mnaxrimum of 45 hours is permitted.
This does not, however, mean that an exrcepted employee, when neces-
sary, may not work more than 45 hours at the extra compensation.
If such excepted employees are paid by the week, month, or on a
yearly basis and enjoy vacation periods, sckj leaves, and other benefits
granted to salaried workers they salnot be paid an additional
amount for any reasonable overtime work.
(c) The maximum hours fixed in the foregoinrg Paragraphs (a)
and (b) shall not apply to' watchmen, janitors, or other caretak~ers;
nor to employees in a managerial, executive, or other capacity who
receive $35.00 per week or more; provided that w7Cith respect to the
exceptions in this Paragraph and in Paragraphs (a) and (b) of this
Article there shall be no evasion of this Code by reclassification of
the function. of workers. A worker shall not be included in none
of the above exceptions unless the identical functions wcchi~ch he
performs were identically classified on June 16, 1933.
( d) TIhe provisions for m~axim~um hours set forth in. Paragraphs
labor per 26-week period for each employee so that under no circum-
stances shall any employee knowingly be employed or permitted to
work for one or more employers in The Inldustry in. the aggregate
in excess of the prescribed number of hours.
(e) Employers in. The I[ndustry, subject to the exception provided
in Paragraph. (h) of this Article, shall not pay any of the classes of
employees covered by Paragraph (a) less than $;15.00 per week in any
city of over 500,000 population, or in the immediate trade area of
such city; nor less than $f14.50 per week in any city of between 250 000
and 500,000 populations, or in the immediate trade area of such city;
nor less than $14.00 per week in any city or town of less than. 250,000
population, or in the inulnediate trade area of such city or town;
provided that employers in The Industry may pay to any class of
employees covered by Paragrrlaph (a) who perform the workl~ of office
boysv and officet girls, not less than 80 percent of the minimum wage
designated byT this Paragra.ph, provided that the number so excepted
shall not exceed 5 percent of the total employees of the employer and
provided, further, that each employer may have at least one such
employee. Population for the pilrposes ofthis Code shall be de-
termnin~ed by reference to the 1930 Fecderal Cellnss.
() Employers in The Industry, subject to the exceptions provided
nParagraph (h) of this Article, shall not pay any employee of the
classes covered by Paragraph (b), or employees excepted therein,
namely, supervisory staff (including foremen), maintenance workers,
engineers, and firemen,1less than 40 cents per hour to male employees,
or less than 35 cents per hour to female employees. The foregomng
distinction in minimum rates between male and female employees is
not a discrimination, by reason of sex but because of a difference in
the work done. Where female employees do the samne krind and
amount of work as male employees they shall receive the same wages.
It is agreed that this Paragraph, establishes a, guaranteed minimum
rate of pay regardless of whether the employee is compensated on
the basis of a time rate or on pieceworkr performance.
(g) The provisions of Paragraphs (e) and (f) of this Article
shall not apply to any employee partially inccapacitated through age
or otherwise, who has served not less than 1_0 years in. the continuous
employment of the employer, provided that thle number so excepted
shall not exceed 5 percent of the total employees of the employer, and
provided that each employer mly have at least one such employee,
and provided further that the minimum wage paid to such employee
shall nrot be less than 30 cents per hour.
(h) Employers in The Industry shall not pay less than 90 percent
of the minimum. wages provided in Paragraphs (e) and (f ) of this
Article, to employees in the Southern states. For the purpose of this
Article, the Southern States are defined as-
Alabama North Carolina
Florida South Carolina,
(i) Nio person under the age of 16 shall be employed in The
ARTICLE TTI--PRESIDENTIA]L Avanou3[rrr
As required by Section 10 (b) of Title I of the National Indus-
trial Recovery Act, the following provision is containled in thisl
Code: The President may from. time to time cancel or maodify any
order, approval, license, rule, or regulation issued under Titlie I
No provision in this Code shall be interpr~etedl or applied in such
a manner as to: (1) Promnote moniopolies; (2) Permiit or encourage
unfair competition; (3) Eliminate, oppress, or discriminate against
ARTICLE VIITI STATE LAWS
Within each state, mlember~s of Th~e Industry shall comply with
any laws of such state imposing more stringent requirements, regu-
lating the age of empIloyees, wages, hours of workr, or general wor~king
conditions, than under this Code.
ARTICLE IX REPORTS
T1Ihe Paint IndustryS Recovery Board, through Association Head-
quarters, shall collect and provide all reports required by the Adminl-
istrator under the National lndustr~ial Recovery Act. Every member
of The Industry shall furnish such reports as are required pursuant
to such requirements.
InI addition to information required to be submitted through the
Paint Industry Recovery Board, there shall. be fur~nished- to govern-
m~ent agencies such statisticarl information as the Admlr~ inistratoro may
deemn necessary for the purpose r~eeited~ in Section 3(a) of the
National Industrial Recovery Act.
ARTICLE X-A-~DMrI N ITRTION
After ~this Code shall have been approved bytePsintoth
United States, it shall be administered~l through the Arssoiaetion by
board to be immediately created and to be known as the "L Pa'int
Industry Recoveryr Board."
TChis Board shall be composed of the following members: Not
more than 3 members without voting power to be appointed by the
President, the 8 members of the present General Code Conu~nittee,
20 members, representing commodity groups? 20 members repre-
T~he members of the Board representing commodity go'up's shall
be electedl as follows: 5 members to be elected by lanint manufarc-
turers, 5 members to be elected by varnish malnIu fnct u ers, 5 members
to be elected by lacquer manufacturers, 5i members to be elected by
kalsomnine and water-paint manufacturers.
]Provided that each of these groups shall contain 2 members from
the Eastern States, 1 memlrberl from the States in or west of the Rocky
Mountains and 2 members from the remainingr States. Nomli n at ion s
for election to the Board for said Comnmodity groups shall be mlade
by members of The Industry at large, regardless of membership in
any association, and the nominations so made shall be submitted to a
mail vote of all members of The Industry throughout the U~nited
.States and those receiving the highest number of votes in each Group
shall be declared to have been elected to represent the Commodity
gr~oups. The members of the Board representing communities shall
be elected in the following manner : 1 each to be elected by the mem-
;bers of The Industry doing business in the log~ic~al trading areas of
the following cities, which manul~fac~tur~ers shall be called together for
thec purpose of such election by the President of the Local Paint
ClubI, or local pa int, ma nu factu rers' associa tion if any such exists:
Atlanta-New Orleans Kansas City
Baltimore Los Angeles
Buffalo 31innenpolis-St. Paul
Chicago New York
Dallas-Houston St. Louis
Denver San Francisco
Detroit Seattle-Tacom a-Portl an d
No person shall be eligible for memnber~ship on this Board who is
not directly engaged in the manufacture of pl~roucts of The In-
dustry, except the members to be appointed by the President of the
UInited States. Furthermore, no company or group of affiliated com-
panies shall have more than one representative on this Board.
Vacancies which mray occur in the Board for any reason whatsoever
shall be filled by election in the same manner as hereinbefore pro-
vided. This Board, subject to the approval of the Administrator,
shall elect its own Chnairman, adopt its owrn rules of procedure (not
in conflict with any other provisions herein contained), appoint such
committees as may to it seem necessary from time to time, and may
delegate its authority to such commites A majority o h or
shall have the power to recommend to the Administrator for his
approval the addition of representatives of other groups or com-
mulnities to its membership; provided that such additional members
shall be elected in the same manner as above described.
The staff, Association HI~eadquarters, and other facilities of the
AIssociation shall be employed in carrying out the work of the
Painttttttttttttttttttt Inusry oRecovery Board. Such funds as mnay be required for
the orkof hisBoard shall be subject to appropriation byth
Budget and Finance Committee of the Association. All members
of thTe Industrys or groups thlereof who qualify as such under this
Code are eligible to membership in the Ailmerican Paint & Varnish
M~anu fact ur~ers' Association, Inc., or its successor, without payment
of initiation fee, which has been temporarily wRaivedX. If group
membership, such groups shall pa~y into the Treasury of the Atmeri-
canl Paint and Varnish Mannufa~cturers' Ass-c~ci:ation, Inc., a total
amolcunt equal to the dues of each member of such group as if each
members were a direct member of the American Paint and Varnish
MranIu fa c t u1rerj' Associasti on, Inc. If for any reason an eligible man-
ufac~tur~er does not desire to join this Association he may, neverthe-
less, receive all of its benefits, including participation in this Code, by
paying a fee to its Treasurer equal to the dues, provided that should
any Imember of this Code 17esire not to become a membelljr of the Asso-
c~intion and desire not to pay to its TI~~tr lleasr a sum equal to the
dues, he shall neverlthele~S paly. his proportiornate share of theLLLLLLLLLLLLL
amounts required to pay the cost of assembly, analysis and publi-
cation of necessary reports and data and of the maintenance of this
na~ministr~ative authority anld its nrativities and the Paint Industry
R~ecovery3 Board shall assess each such member of the Industry with!
his proportionate share based upon the value of sales or otherwise
as the Paint Industry Recovery Board may p~rescribe, subject to the
approval of the Admiinistrator.
The Paint Industry Recovery Board shall have full responsibility
for its expendlitures within the limits of such appr~oprintions as are
made from time to time, provided that no traveling or other ex-
penses of Board members shall be paid out of the Afssociation funds
when attending Board meetings, but actual exp~ense~s of members of
the Board when engaged in the business of the Board, other than
attendance at Board meetings, may be paid out of such funds pro-
vided prior authority for such expenditure or expenditures has been
givenil by the Board.
~ARTICLE XI-AM ~E~nDTIENTS
Such of the provisions of this Code as are not required to be in-
cluded therein by the National I[ndustrial lRecovery Act of June 16,
1933, mayT, with the approval of the President, be modified or e~lim~i-
nated as changes and circumstances or lexpienrine may indicate. It
is contemplated that from time to time supplementary provisions to
thnis Code will be submitted for the approval of the President to
prevent unfair competition in price and other unfair anld destructive
competitive practices and to effectuate the other purposes and poli-
cies of Title I of the National Industrial Recovery Act, consistent
with the provisions hereof. Members of The Industry or a local
paint manufacturers' association, if any such exists, shall submit
desired amendments of this Code to the Painrt Indurstry Recovery
Board through Aissociation Headquarters. By agreement of a ma-
jority of the Board, an amendment, so received or one initiated by
the Board itself, shall be referred to The Industry in the following
manner: those members of the Board who represent the commodity
groups shall submit the proposed amendment to their respective
groups, if in their opinion it is g~er~mane to the interests of such
groups; those members of the Board who represent manufacturers
from the several cities shall call meetings of the manufacturers in
their communities. The several Board mnembeltrs shall then submit
individual reports to Association Headquarters, which shall collate
them and submit a full report to the Board. Thereafter the Board
shall vote on submitting the Amendment to the Governmrent and
shall so submit it if at least twPo-thirds of the Board vote to do so,
provided that the proponent of any7 allemendet shall have the right
to submit such amendment direct to the National Recovery Admin-
istration for its consideration.
By presenting this Code the members of The Industry do not
thereby consent to anyT modifications thereof and reserve the right
to object inldividuallyT or jointly to any such modiifications.
PA4RT 2--TR ADE PRACTICES
ARTICLE XCII--MISBRANDING, irll5LADELING, AND FALSE ADVERTIrSING
M~isbranding, mislabeling, and false, deceptive, and misleading ad-
vertising are prohibited by this Code.
ARTICLE XII CI-Gws To ElllPLOYEES or ANOTHER
It. shall be a violation of this Code for any1 person engaged in The
Industry, to offer or give--or to permit any representative of his to
offer or give--any commission, gratuity, or other thing of substantial
value to employees of his customers or prospective customers, except
in the case of payments made with the consent of the employer for a
definite service rendered.
ARTICLE XI`V-MANUACTURING ItESTRICTIONs
.It shall be a violation of this Code for any manufacturer to fail
to abide by the manufacturing restrictions as set out in Schedule
A which is attached hereto anld made a part of this Code, provided
that this Article: shall niot apply to export trade and provided fur-
ther that Paragraphs 2, 4? 5, and 6 of Schedule A shall not apply
to products commonly known as 5-, 10-, and 25-cent merchandise
wihichi is sold at retail to the consumer at not more than 25 cents per
ARTICLE XV--EXCHANGE, OF GrOODS
The practice of taking in exchange for one's own goods, Industry
products of another manufacturer, distributor, or dealer, is un-
ethtical, unfair, and is hereby prohibited. It shall be a violation of
this Code for any manufacturer in the Industry to take or allowFP to
be taken in exchange for his own products, any products of the
Industry, or to give or permit the giving of any advice or assistance
in facilitating such. exchange or replacement, or to make or permit
to be Imade any concessions, allowo9ances, or gifts of any kind to
promote or facilitate such exchange.
Every member of the Industry is required to enter into a written
agreement with his jobbers and/or distributors whereby such job-
bers a nd /or distributors agree to refrain from the practice prohibited
bythis Akrticle. It shall be a violation of this Code for any member
of the Industry to deal or continue to deal with an.y jobber and/or
distributor who shall have acted contrary to such agreement, pro-
vided that no mnemb:,er of the Industry shall be held responsible for
such dealings as he mnay have engaged in prior to thne time he has
received notice of the breach of such agreement by a jobber
and/or distributor, and provided that no member of thne Industry
shall be held responsible for such dealings after the Paint Industr~y
Recovery Bo0ard has given approval for further dealings with a
jobber andc/or distribltor who may have violated such an agreement.
The Panint In~dustry Recovery BEoard may require each member of
the Industry to file a copy of each agreement which. he may7 make
with a jobber and/or distributor.
ARTICLE XVI---STANDARD TERMS OF CASH DISCOUNT
On anrd after the effective date the terms granted by mnanufac-
turers, excluding export trade, shall not exceed: Trade sales accounts,
2 percent for cash in 10 days, net 60 days; industrial sales accounts, 1
percent for cash in 10 days, net 30 days; except that the discount to
trade sales accounts may be extended to the 10th day of the month
following purchase and the discount to indlustr~ial sales accounts may
be extended to the 20th day of the month follow7ing pur11chase to cuIs-
tomners who regularly discount in the month following purchase, anld
provided that no discount shall be allowed after the dliscount dlate.
ART"ICL;E XViII -DATINGTS
Except as specifically provided by this Article, members of The
Industry shall not grant any datingrs on the sales of any Industry
produ c ts.
(a) Spridng S ockX Or~ders.- Dan t ings on orders to established dealer
and/or jobber accounts, excluding export trade, shall be limited to
datings on Spring Stock: Orders shipped at the maunufactur~rer con-
venience after October 15, with an April l dating and regular terms;
one order to an account.
(b) New, Accounts.-T-lhe m~aximumn dating on1 trade sales stockr
orders (initial stock order only) to new dealer and/or jobber ac-
c~ounts, e~xcludringr exponrt traden shall be limited to four mnont.hs f~romn
the date of shipment and with standard terms, provided that orders
shipped betw-een October 15i and December 1 in any year may be with
an April 1 dating and with. regular terms.
(c) Roof Coatinigs anid Cemtents.--A maximlum dating of four
months may be given on a curloadnr of not less than 40,000 lbs. of
liqu~id and plastic roof coatings and/or roof cements, not including
other products, whenever the lowest published le~ss-than-car~load
freight rate (by rail or water) is more than 50 cents per cwt.
(d) Anticipatred7 Discouint.--If any dating shall be permitted
under this Atrticle, an anticipated di coulnt ma~y be allownied to the
extent of one-half of one percent a month.
(a) Price G~uaranrItees.--Guarantees against price decline shall be
pr~ohibited except in the case of an order on which a dantingr has been
allowed under Article XVII, when such a price guarantee may be
given for a time not to exceed the dating period grlantedl.
(b) Time Guaran2tees.-Definite time guarantees on, the life and/or
service of the products of The Industry a r~e hlereby prohibi~ted.
The practice of supplying accounts on consignmlerit anld/or' trust
ceirtifienlte agIireme~nts, exlcept as hereinafter provided, is prohib~ited.
Thlis also inc.lud'Es consignmentslt which are sometimes made under
so-called warehouse agreements but does not prohlibit manurfac-
turers from carrying a stock of their goods in a public or pr~ivate
warehouse at their own expense mn any eclt ic-n of the Unitedr~ States,
providedc~ that such stocks inlu ( not be warehoused wRit~h or for the
account of anyr person, firm, or corporation dealing in or hanldling
(as a mierchant) or us~ing~ (as a p'ainiter) products of the :in dulstry
]Ev\ery\ Ilmallnufaturer wvho has any such colnsirrnment. stocks inth
hands of buyers on the effective date of this Cvode may continue the
same but he shall file a detailed list of such accounts within 60 days
of the effective date of this Code with Association Headquriiters
and/or the office of a local paint manufacturers' association, if any
such exists, where reference may be made to it at any~ reasonable time
by interested parties. Until such time as an account as listed above
is discontinued, such accounts may be similarly supplied by any
manufacturer in the Indus~try. The Paint Industry Recovery Board
shall, subject to the approval of the A~dministrator, develop such
plans as will etfectunte the ultimate elimination of consignments
from the Industry. This APrt~icle shall not apply to export trade.
ARTICLE XX-REE DEALS
Excep~t as otherwise provided herein, free deals in or connected'
with Industry products are pr~ohib~ited. "C Free deals for th~e pur-
pose of this Code means all forms of mnarkleting d~evices, including
the gift or loan of spraying or other valuable equipment, whecther
the full cost thereof or only~ a part of said cost is boorne by the manu-
facturer, whereby the said manufacturer furnishes goods of any kind
other thann such of his own products as have been contracted for on
his usual terms: 1Provided that the term Free Deals shall not
apply to the furnishing of advertising accessories of small value,
such as the usual circulars, color cards, window displays, display
racks. and posters which accompany paint and varnish, products as a
tescr~ipt lon thereof, nor shall it apply to novelties of small value such
as caps, yardsticks, paddles, etc.
Furthermore, the terml Free Deals shall not be construed to
include an-y advertising allowance which is made for a definite serv-
ice rendered and for which there is a proper accounting that is audit-
able as st direct charge for cooperative advertising.
Illulst~rtive of the practices which are prohibited are included the
(a) Premiums (gifts of unrelated merchandise) such as blankets,
articles of furniture, etc.
(b) Prizes and awards. This does not refer to prizes and awards
g~iven within a manufacturer's own organization.
(c) Firee Goods (extra amounts of one's own, products).
(d) MeP~rchaniinglTn practices of the type commonlyT known as
" One-cent sales."
(e) Firee Samples. (But the termn Free Deals does not apply
to samples given for test purposes; neither does it apply to trade-sale
samples given for demo~nstration purposes, provided that no size
larrer than 5-16. samples of wPater-paint goods in dry form or 1/32
gallons of other indus~rtry3 products shall be so used and that such
samples are plainly labeled "L Samples.")
()Thre sale of alcohol, turpentine, linseed oil, or anyr other prod-
ucts not manufactured by' The Industry at prices less than the resale
ARTICLE XXI--DISCONTINUANCE Or SHADES AND COLORS
W'hen it becomes necessary and advisable for any manufacturer to
discontinue certain shades or colors in any trade-sales line, he shall
give his dealer and/or jobber customers w~ho purchase such lines six
months' advance notice prior to discontinuing the manufacture of
such shades or colors, providing that this A8rticle shall niot apply to
ARTICLE XYXII-SELLI NG' BELOW\ COST
1Products of The Industry shall niot be sold at less than cost no
(1) The cost, of La~cquer Thirnnrer in full tnan carrs or tarnrnkwagons
containing not less than one thousand-gallon quantity, when sold and
delivered to one purchaser, shall be not less than the sum. total of the
current market replacement price of each and every :ingrledient in the
The cost of all other products shall include thie following:
(2) The seller's total m~airket replacement cost of raw materials
(based on cost furnished monthly-, or oftener if necessary, b~y authtor-
ity of the 1Paint Industry Recovery Board through Association Head-
quarters, subject to approv-al by the A-dministrator); and if any rawT
materials are used (such, as varnishes, japons, driers, etc., purchased
in finished form bly thle seller) for which costs are not furnished
monthly or oftenler, as herein provided, the cost used for such item
or items shall be thle seller's total current delivered replacement cost.
(3) Containers and/or pack~ages.
()cost of Processinlg.-To include all direct costs (such, as power
and labor), depreciationl figured in accordance with provisions of the
Federal I~ncome Taxz laws, plus a proper proportion of all indirect
factory expenses (excepting interest on investment), in accordance
with the share each product should bear, provided that the distribu-
tion of indirect factory expense per unit of production shall be on
the basis of the average rate of utilization of plant facilities of profit
making producers during the years 1928 to 1932 inclusive, and pro-
vided that such average rate shall not include any plants not in
(5) There shall also be included in the cost a proportion of the
general and administrative expenses, such proportion to be deter-
mined and to be recommended b~y the Paint IndustryT Recovery Board
to the Administrator for approval.
(6) Transportation charges when goods are sold f.o.b. destination.
In the case of any complaint by an interested party that a manu-
fact urer is violating the above cost provisions the burden of proof of
compliance shall rest upon the accused manufacturer. If the Code
Authority or the Administrator is not satisfied by the proof furnished
by the defendant manufacturer the matter is to be referred to thze
]Federal T'rade Commission wcho shall audit the cost accounting of
the defendant and review his allocation of burden; arod the report
of that Commission shall be fCinal regarding the costs of the defend-
ARTICLEE X;XIII COMPETITIVE RELTIONSB
(a) Indurcing B3reach7 of Contract.-No manufacturer either di-
rectly or indirectly or through his salesmen, representatives, or
agents, shall encourage any purchaser of the products of The In-
d~ustry3 to disregard or fail to live up to hris commitment to another
memllber of the Industry.
(b) Disparagement of Competitors.--The use of or participation
in the publishing or the disseminating of anyS false statement, repre-
sentation or insmnuationI which disparages the business of a competi-
tor, or attackrs the reputation, goods, prices, credit, service, or adver-
tising of any competitor or of any other industry, is an unfair and
unec~onomic, practice and is prohibited.
(c) Enr t ~icing Employees.-Mlem~be rs of The Industry shall recog-
nize the right of employees to use all honorable and reasonable efforts
to better their conditions, but shall refrain from directly or indirectly
soliciting or bidding for the services of the employee of another
member. Only when such an. employee takes the initiative shall a
member of The Industryr have the right to Inegotiate with him about
ARTICLE XXIV RETURNED GOODs
NEio member of The Industry shall accept thne return of merchan-
dise from~ any customer without having given prior consent to the
return thereof. On such goods as are accepted for return a reason-
able charge shall be made and the freight charges must be charged
to the shipper returning the merchandise, except in the case of de-
fective products or where in some other way the manufacturers maly
Approwdt~l Code No. 71.
Registry No. 619/1/03.
Manulrfacturin~g Restrictions.-Ilndustry products, excepting those for export
trade, shall not be manufactured for the purpose of marketing them as trade
sales goods in containers of sizes and types prohibited by this rule, nor shall
they be produced inl tints or shades to a greater number than alllowedl by this
rule, subject to Ariicle XXI hereof, provided that Paragraphs 2, 4, 5, and 6
hereof shall not apply to products commonly known as 5-, 10-, and 23-cent
merchandise which is sold to the consumer at not more thanl 25 cents per
1. (a) Nio two-pound canls in any line, except floor wax.
(b) N~o three-pound cans in any line.
2. (a) No sizes less than quarter-gallon in barn and roof paint.
(b) No sizes less thian gallon cans in shingle stain.
3. No half-gallonl cans in the following pI-ccrodcts: Aluminum paints, barn
paints, roof paints, auto-top dressing, wagon and carriage paints and enamels,
oil stainis, spirit stains. and varnish stains.
4. No hialf-pint cans in first-grade house paints.
5. No half-pin t cans in first-grade flat paints.
6. No quarter-pinlt cans in all house paint and flat paint.
7. No oblong or square varnish cans in, sizes smaller than one-half gallon
for any product, excepting shellac varnishes, carriage and automotive finishes
(clear and colors), lacquers, lacquer thiinlerr. liquid wax, liquid polish, varnish
remover, bronzing lIquid, Japan and Liquid driers, penetrating stains and spirit
8. No shades or tints in excess of the following maximum numbers for each
brand and/or color card:
Interior floor paints and floor enamels __,_ __ ___ 10
House Pain~ts --_- __________ ___ 32
F'lat `Wall Paints -, _____________ __ 20
Enamels __ _________________ 18
Porch Paints -- ______________ ___
Roof and Barn Paints ________________ ____ 4
Shingle Stains .. _____________ ______ 14
W~ago-n and Carriage Paints or 1Enamels- ----_______ 10
Oil Stains __________________ 10
Varnish. Stains---____,____ __ __ 8
Sp~irit and Penetrating Stains -- ______,________ 14
(All thle forcTineu exclusive of black and white)
Oil Colors__ ___ ________________ 82
(Including black, but counting thet several shades of a
single color as one color.)
8. (a) The maximum number of grnlles for the following products shall be:
A~rchiteCTural1 and Marine Varnishes_, .. ..,_,_,__ 10
(Interior and exterior)
Other Varnishes__ ________________ ______ 28
(Inc~lluding all not plreviously specified, such as Japan
Driers, Asphaltum, etc.)
9. No oil colors in other than liquid measure or in other than three sizes,
namely, gallons, quarts, and half-pinlt. with the exception of tubes, and except-
ing also glass jars when s;okl as a part of a sales unit with white base paint
to be tinted with such colors in oil in gInsslc jars to standards colors, wvhich sales
unit has been especially dleve~lopedc for th~is purpose by the manufacturer.
Massfaturg Restrictions for Kalsom/tis andl WatTter Pa/ints.---10. No shades
or tints in excess of the following numbers for each color card:
*K~alsomine (Hot WCater ) ,,,,-,,,-, .--- ..-- 20
*Kalsomine (Cold Water) ,-----,----------- 20
WCCater Paint, interior non-washable--,----- WChite only
Exterior water-~mixed paints washable paste and powder
form __ .,,,,_--_,,__,___ 20
Interior WFlater-Mixed Paints washable paste and powder
form _______---,-_____ 20
Fresco or Positive, Art or Deep Colors,- ,----- ..-- 20
Plastic Paints--,--------l---,,---------,---------- 8
Cement and/or Ltime Water Mixed Paint __---,--- 16
11. K~alsomine (Hot or Cold) in the following sizes only: Barrels weighing
not less than 300 lbs. net, exzcep~t for the Pacific Coast, where the 280 lb. barrel
is authorized; kegs conltainingo 100 lbs. net weight; 25 lb. net weight packages;
5 lb. net weight containers.
(Existing contracts covering Kialsomnine in containers differing in weight
content from standards covered herein shall be completed prior to December
31, 1933, provided that should a purchaser, now under contract with a manu-
facturer extending beyond that date, decline to accept a readjustment of his
contract to bring the packages into line with these provisions, the manu-
facturer party to the contract shall refer the matter to thne Paint Industry
Recovery Board prior to Deceber 31, 1933, for such amicable adjustments as
the Board may be able to work out with the parties at interest.)
12. Interior Cold WCater Paint, powder form, nonwashable. Barrels weigh-
ing not less than 350 lbs. net, 25 and 100 lb. containers, 5 lb. net weight
containers; to be made in W~hite only.
13. Plastic or Texture Paints (Dry), in the following sizes only: 5, 10, 25,
50, and 100 lb. net weight containers and not less than 300 lb. net weight
Paste form in same size containers as First Grade Flat Paints.
14. Patching Plaster to be sold in sizes as now marketed.
15. Interior and Exterior Wiater-Mix~ed Paints, Washable, in the following
sizes only :
(a) Dry Powuder For~m.-5-F lb., 25 lb., and 100 lb. containers; barrels of 300
lbs. net. or more.
(b) Paste Form.--- quart, 1 and 5 gallon cans and 30 gallon drums.
16. Cement and/or Lime Bound Water Mlixed Paints in, the followinrr sizes
only: 5 and 10 lb. containers, 50 and 100 lb. containers, barrels of 300 lbs. net,
17. Fresco Colors (Positive, Deep, or Art Colors) to be packed in the followv-
ing sizes only :
(a) Powder Formt.-1- lb. cartons or cans, 25 and 100 lb. containers, Barrels
or 300 lbs. net or more.
(b) Paste Form.--To be packed in %L pint, quart, and 1 gallon cans only.
18. Dry Sizes, Wiater-M~ixed. To be packed in the following sizes only:
1 lb. cartons, 100 lb. containers, and 300 Ib. Net B3arrels, or more.
* Means material commonly known and described by this term.
AMENDM1\ENTS TO CODE OF FAIR, COMPETITION ]FOR
TCHE PAINT, VAIR-N3ISH AND LACQUER J1ANU~FACTURE-
AiENrDMrENT 1. ~Article II is amended by the addition of the fol-
lowing between the first and second paragraphs:
The term 'Artists' Colors means artists' oil colors, or artists'
paints, water colors including poster and showcard colors, tempera
colors, and artists' pastels, prepared canvases and panels, artists'
m~ediumls and varnishes, artists' drawing and lettering inks, artists'
block printing inks of oi~l or water base, charcoal, modelling tools and
all types of artists' woodenware, such as easels, palettes, color boxes,
and such. kindred materials and articles ordinarily used in schools
and by art students, artists, commercial artists, etchers, modellers,
sculptors and craftsmenn"
A~MENDMENT 2. Article V, Section (c) is amlended to read as
f 0110ws :
"' The maximum hours fixed in the foregoing Paragraphs (a) and
(b) shall not apply to watchmen, janitors, or other caretak-ers; pro-
vided that such employees shall not work more thran. 48 hours in
any one week, nor more than 84 hours in any 2-week period, except
by payment of one and one-third rate for overtime; nor to employees
in a managerial, executive, or other capacity who receive $35.00
per week or more; provided that with respect to the exceptions in
this Paragraph and inl Paragraphs (a) and (b) of this ~Article there
shall be no evasion of this Code by reclassification of the function
of workers. A worker shall not be included in any one of the above
exce~ptionrs unless the identical functions which he performs were
identically classified on June 16, 1933."
AMIENDMENT 3. Article XZIV is amended to read as follows:
With the exception of Atrtists' Colors, as definedr in Article II,
it shall be a, violation of this Code for any manufacturer to fail
to abide by the manufacturing restrictions as set out in. Schedule
A which is attached hereto and made a part of this Code, provided
that this Article shall not apply to export trade and provided further
that Paragraphns 2, 4, 5 and 6 of Schedule A shall not apply to
products commonly known as 5, 10, and 25-cent merchandise which
is sold at retail to the consumer at not more than 25 cents per
AMENDMENT 4. Article XVI is amended to read as follows:
On and after the effective date the terms granted by ma~nu-
fac~turecr, excludlring export trade, shall not exceed: Trade sales ac-
counts, 2'17 for cash in 10 days, net 60 days; excepting Artists'
Colors, on which the terms shall be-2% for cash in 10 days--net
30 days; industr~ial sales accoulnts, 1% for cash in 10 days, net ~30
days; except that the discount to trade sales accounts may be ex-
tended to the 10th day of the month following purchase and the
discount to industrial sales accounts may be extended to the 20th
day of the month following purchase to customners who regularly
discount in th~e month following purchase, and provided that no
discount shall be allowed after thle discount date."
ALMIENDMENT 5. Article XVII, Section (a) is amended to read
L"(a) Spring Stock Orders--Datings on, orders to established
dealer and/or jobber accounts, excluding export trade, and Artists'
Colors, shall be limited to dating on Spring Stock Orders shipped
at the manufacturer's convenience after October 15, with anl April 1.
dating and regular term; one order to an account.
AMENDMIENT 6. Article XVTII, Section (b) is amended to read
"(b) New Accounts--The maximum dating on trade sales stock
orders initiall stock order only) to new dealer and/or jobber ac-
counts, exc~lud-ing export trade, and Artists' Colors, shall ~be limited
to four months fromr the date of shipment and with standard terms,
prov-idedi that orders shipped between October 15 and December 1
in any year may be with an April 1 dating and with regular terms.
Datings on initial trade sales stock: orders of artists' colors from
n~ew7 dealer and,/or jobber accounts shall be limited to two months
from the date of shipment and with standard terms."
AMI(ENDMDENT 7.--The following Section (e) is added to Article
"L(e) Artists' Colors: Fall Stock Orders: Datings on orders to
established dealer and/or jobber accounts shall be limited to dating
on fall stock orders and shipped at the manufacturer's convenience
after April 1, with a September 1 dating and regular terms and one
order to an account. In the case of show-card colors and inks,
which are subject to freezing, dating shall be limited on. spring
stock orders shipped at the manufacturer's convenience after Novem-
ber 1st (or, in the event shipment is made by a water route, which is
affected by the closing of navigation, this date may be advanced
not to exceed ten days prior to the oflicial closing of navigation over
such route), with an April 1st dating and regular terms and one
order to an account."
.AMENDMLENT 8. Section (4) of Article X~XII is amended to read
The Paint Industry Recovery Board shall classify the products
of the Industry and establish and furnish to all manufacturers fig-
ures representing all direct factory costs (such as power and labor)
depreciation determined in accordance with the provisions of the
Federal Income Tax Laws, plus a proper proportion of all indirect
factory expenses (excepting interest on investment) in accordance
with the share each class of products should bear. Such ~figures
shall be the lowest reasonable cost of manufacturers, large and small,
throughout the Industry and (subject to change by the Board) shall
be used as the minimum processing cost by all members of the
Industry, subject to the approval of the A~dministrator."
AMENDM6ENT 9. S681011 10i Of Schedule A is amended to read as
Cement and/or Lime Bound W~ater Mtixed Paints in the follow-
mng sizes only: 5 and 10 lb. containers, 25, 50 and 100 lb. containers,
barrels of 300 lbs. net, or more."
AMIENDMIENT 10. Article ~XXV is added, which reads as follows:
"AnRICE XXV--Pxrrr DIv.ISIos
'"All provisions of this Code not in conflict wNith the provisions
of Schedule B attached hereto and made a part hereof shall apply
to the Putty Division as defined herein.
"L SECTION 1. Definitions: The term Putty Division of the Paint,
Varnish and Lacquer Manufatcturing Industry as used herein shall
be construed to include all manufacturers of putty and/or plastic
substitutes therefor used for the purpose of glazing and for such
other purposes where putty is ordinarily used.
SIECTION 2. 1Putty Advisory Committee: There shall be a committee
of five members from the Putty Division of the Association: 2 from
the Eastern states; 1 from the states in or west of the Rocky M~oun-
tains; and 2 from the remaining states; who shall be nominated and
elected by the members at large of the Putty Division and submitted
to the Paint Industry Recovery Board for approval.
"r It shall be the duty of this committee to advise with the Paint
Industry Recovery Board, as m~ay be nece~ssary~ from time to time,
provided that the functions of this c~onunittee shall be entirely of an
advisory nature and not binding upon the Paint Industry Rec~overy
Board or its represent atives.
"' SECTION 3. Fair Trade Practices: It shall be a violation of thris
Code for any member of the Putty Division to fail to abide by the
Fair Trade Practices set forth in Schedule B attached hereto."
2AMEN~DMENT 11. Schedule B, Fair Trade Practices, is added, which
reads as follows:
"L SCEITEDITLE B -FAIR RADIE PRACTICES
1. Manufacturing Restrictions: ]Putty, except for export t rudce,
shall not be manufactured for the purpose of marketing as Trade
Sales goods in packagbes other than the following: 1 lb. cans-5t lb.
cans-12S/z lb. pails-16t lb. pails--25 lb. pails; provided that nothing
in this Code! shall prevent the sale of these products in packages
weighing more than 25 lb. net.
2. APllowances: (a) No allowances shall be made for the return
of any empty plc~kage, which empty package weighs less than 60
(b) No allowance shall be made for cartage.
3 Fre~e Goods and Premiums: In addition to t~he provisions of
Article XXrc, Putty Knives shall not; be given free of charge in con-
nection. with the mark~etinga of pultty.
4. Standardization of Grades: With the exception of products
made to order or on specifications, putty: shall not be manufactured
in a greater number of grades than herein p~ermitted.
"(a) Woo0dssas Putty maty be manufactured not to exceed:
"r(1) 5 grades composed of calcium carbonate;
(2) 5 grades composed of calcium carbonate and not less
than 5Cr0 white lead.
"'(b) Facto~ry type mIletall sash putty shall be manufactured in not
more than 3 different grades.
"'(c) Ca~sement metal sash putty shall be manufactured in not
mnore than 2
.5. Commercial grade. of Putty, regne~dless of brand name, shall
be the lowest quality Putty offered.
cj. Mciislabelling, ~Misbranding and False Advertisingo: In addi-
t ion to the provisions of Article XII, the following are hereby
(a?) Except as a part of a complete formula label the term
" Linseed' Oil or the term linseed shall not be used in connection
writh the description of any putty, the vehicle portion of which is
less than 100 percent pure Linseed Oil.
(b) The term Chalk ", Chalk: Whiting or True Chalk Whit-
ing "` shall not be used in connection with the description of any
purtty, unless the pigment portion thereof is 100 p~er~cetlt true Chalk
W~'hiting. (But not~hin in this clause is to restrict the use of the
single word '"Whiting so long as the material used is Calcium
C~arbona te) .
(e) The term Pure singly, or with any other word or words,
or any derivative thereof, shall not be used in connection with the
dlescriptlion of Putty unless the liquid portion thereof is 100 percent
pure inseed Oil.
ALpprov~ed Code No. 71. Amendments Nos. 1-11.
Regist ry No. 619-1-03.
UNIVERSITY OF FLORIDA
3 1262 08851 7817