Code of fair competition for the bleached shellac manufacturing industry as approved on April 21, 1934


Material Information

Code of fair competition for the bleached shellac manufacturing industry as approved on April 21, 1934
Portion of title:
Bleached shellac manufacturing industry
Physical Description:
p. 423-440 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Shellac industry -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 619-01."
General Note:
"Approved Code No. 403."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004939873
oclc - 63654788
System ID:

Full Text





For sale by the Superlatendent of Doculments. Washinglton, D.C. --- Price 5 cents

Registry No. 619--01

Approved Code No. 403



This publieution is for sale by the Superri~intle:nde of D~lueuments,, Government
Pr'inting Offcet, W5ashington, D.C.. andi by~ district oilicc ojf tht B~ur'eau of Forecign
and Domlestic Co~mov~e.e


At~lantai, (a.: BU4l PostI OffiiC Buildingr.
DSirmlin~hum, Alac.: 257i FederclnIl Buildlinrr.
Boston, .110ss. : 1Y01 CJustcumbo~use.

Chu~r~leston, S.C.: Chainllbl r of Co'lmmerce Buibilnug.

c'levelanid. OhIo: Chamrr beri o~f i'ommerce.
Dallas, Texs.: Chalmber ofI Commercr e Uuildlin~.
)Etlr -ir, 31i(.b.: S01 F~irst Naltilrna~l Bank Buildling.
Howrouni, Tex.; '-1:111.'hambe of unnierce Building.
Indin:nporlis. Inl.' Cllmlberr of co'lmmerce TDuildling.

Kansus;l City', RIi.: 1C)28 Avenue.
Los Aniceles.~ Cualif.: 110i3, South Bi~irtan-;y.
"Louisville. Ky.: 408S Federal Buoibline-.
lr-ikinphis. Teunl. 3" 22 Fede~ral Buiblingii.

New\\ Or~lcans. L:.. R Kncll 2 3-A. c:ustomhouse1.
Ne I v TIm k. N.Y. : 73-11 C.ustainllho~use.
Norfolk;. 1'31.: 406 East Plumne Stree~tt.
Philadltllhlin. Pa.: 422 Commercial Trust Buildling.
Pittsburgih, Pa.: Chamber of Commer~ce Buildling.
Portlanid. O~reg.: 2L1T New Post Office Bluildin~g.
St. Louis. RIo.: 506 Olive Street.
Sanl Fran~cis~o, Calif.: 310: Customblouse.
Seattle. Washl.: 809 Federal OfCfice B~uilding.

Approved Code No. 403



As Approved on April 21, 1934



An application having been duly made pulrr unnt to and inl full
compliance writh the provisions of T'itle I of the National Inidustrial
Recovery Act, agproved June 16, 1933, for approval of a Code of
Fair Competition for the Bleached Shellae Malnufa.ctur~ingr Industry,
and hiearingis having been duly held thereoni and th~e annexed report
on said Code, containing findings wFith esnpect. therePto, hav;ngr been
made and dlirected to the President:
NOW,? THEREFORE, on behalf of the Pres~ident of thle U~nited
States, I, Hugh S. Johnson, Achnniistrator for Industr~ial Recovery,
pursuant to authority rested in mne by Executive Ordlers of the Presi-
dent, including Executive Order N'o. 6543-A, dated December 30,
1933, and other~wise; do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects
writh the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; andl do hereby order thast. said Code
of Fair Competition be and it is hereby approved; provided, hiow-
ever, that the provisions of Article VII, Sections 3-a. and 3b, inso-
far. as t~hev prescribe~ a wait~ing period between the filingr w~ith t~he
Code Authority (i.e. actual receipt by the Code Authority) and the
effective date of r~evised price lists or revised terms and conditions
of sale be and they are hereby stayed pending my further order.
Adm~inistraxtor for Induzstr~ial Recovery.
Alpproval recommended :
Division, Adm~inistratfor.

54302 -482-137- 34



Th~e W1hite H mmaie.
SIn: This is a report of the hiear~ing on the Code of Fair Competi-
tion for the Bleached Shlellac Manurfacturinlg Industry, conducted
in Washington onl Januaryv 18, l1034, in ncordcance with the provei
sions of Title I of the Nation~al Induslltrian l Recov'ery Act.

T'he Code7 proviidest thalt no0 employee shall be permittedl to work
in exCcs of for'ty hours in any oewe regthusi n
twernty-four h!ouri period ; provided, howe-~vrr, that for a total orf six
wee~lkS in any' sixr monthlf~ s' per~iod~ beinigonJnar adJuy1
employees may be per~mittedc to wTorkr for~ty-e~ight houls in any cal-
endar w\.Eek in ord~cer to take care of seasonal requirements. Any
fnctory3 employee who worlks in. excecss of forlty ho.urs per week or
eight hou-rlls per day shall be pa;id time and a thirdt for1 Sulch' overtim~e.
Front~ll the above pr1ovisio.ns therel. ar~e ~xc~epted~: Empn~loyees enl-
gaEd~-' in an executive or wnlperv\isoryJ enpneity w-hnl ece~ive not. less
than thirtyr-five doJ1llars pjer weekl. and~ oultside salesmen;~l also en-
ginerts, firemen, maintenance and repnir emnployeces w~ho may not
wasl k; more tha~n forty-fi\-e hours wak~ly exce~1pt by the payml~ent of
timle and a third for over-time mn exscess~ therleof ; t~uckminen "who may
not work in exce.lss of forty-eighlt hours~ per week except by' pay-
nientlr at the rate of time and a third for time in excess thereof';
watchmen who shall have one full day1 off in each seven (Iay p:er~iod.
The Code proviides minimuml wanges~ of forty cents per hour except
for clerical emplloy\ee~s (not :incluldingr outside salesmnen) who shall
be paid no-t less thanll fifteen dollars p~er week except thant o~fficre or
errand boys between the ages of 16 and 18 years, and not to exceed
one to each plant, may be paid not less than twelve dollars per
App~lying to wages above the minimum the Code provides that no
mertmber of the Industryr shall reduce th~e c~ompensatio nl forl emnploy-
mIent now in excess of the minimum wages hlerein fixe~d (notwith-
stanndingr thatf the hours workledl in such employment may~ be her~eby
reduced) and the pay for such employment shall be increased by an
equitable adcjustmlent of pay schedules.
The Code inrcludelcs the r~comlmnendedec standard~ clause~s onl child
labor, piece wFork compensation, reclnss;ifka;tion of emplloyees, appli-
entfionl of State laws, posting of the Code and a satisfactory clause
covering stlltandards of safety and health.

Bleached shellac is largely used in the manufacture of shellac var-
nzish. which is competitive wTit~h oil varnishles and nit~ro-cellulose


lacquers. It is also used in various types of plastic products and as
g stiffening and waterproofing agent in hats, coated papers and play-
ing cards. The demand is therefore largely affected by general busi-
ness conditions and the respective prices of shellac and various possi-
ble substitute materials.
All of the orange gum used in making bleached shellac is im-
ported from India. Shellac is traded in on exebanges in Calcutta
and London but not in the United States although about sixty per
cent of the production is consumed in America. The material is
extremely speculative and is subject t~o sudden and acu~te price flue-
tuiations thmrogh manipulations on the foreign exchange
Prices in 1925 ranged between 46 and 63 cents per pound. The
high price of 1930 was 32~.5 cents per pound, the lowP of 1932, 9.5 cents
per pound. In recent months the price has varied as much as from
10 to 19 cents per pound "within a 10-day period.
Inasmuch as deliveries of shellac in New York may not be made
until two or three months a after date of order, and orders are accepted
only when accompanied by firm bank letters of credit, there is con-
siderable financial risk involved in any long time commritmients and
the general practice in the industry is to cover each sale by is, purchase
of the. same date. That is, business is largely done on a replacement
basis. Contracts limited to three months' duration are inI general
use since it is very difficult, if not impossible, to secure commitments
of orange gum for more than three months in advance.
Competition within the. industry is usually kseen for available
business. An indiention of this is given by the high mortality of
the firms in this field. WPithin recent years about half the members
of the~ industry, includi;ng some of thle largest, have undergaone forced
financial reorganizations. Nearly one-third of the present, concerns
have been in business less than one year.
The abovec conditions in the Industry are reflected in the detailed
and lengthy Fair Trade Practice provisions which are a part of the
Code. They are t~he results of the efforts of t~he! Industry to :restrain
excessive speculation in shellac and to eliminate practices that have
aggravated the Industry's serious financial difficulties during recent
yea rs.
The authorization to use replacement cost of raw materials in
computing costs seems to be fully justified in view of the fluctuations
in the cost to members of the Industry of the imported raw materials
which represent a high percentage (usually over ~fi~fty e e~per cent) of
the total cost of the manufacture of the products o h nuty
and also in view of the limited number of other items which have
been authorized to be included in the cost determination.
The shipping points mentioned in Article VII refer to th~e locat-
tions of plants and wfarehlousing, and not to artificial "~basing
points ".

There are in this Industry twelve companies with an aggregate
capital today of about $2 ,600,000 as compared with $3,600,000 in 1929.
The report of the Division of Economic Research and Planning
states that in 1929 approximately four hundred persons were emp-
ployedd in the Bleached Shellac Industry. Ques-tionnaire! returns


indicate that the number of factory w~orker~s decreased about. twent
per cent from 1929 to 193", but increased during gc early 1933,an
compliance wsith the President's Reem~ployment Agreemient brought
thne nu~mber of wag~e earners in ~comparablel estab~lishments appre-
ciably above the 19~9 figures. Workingill~ hours were r~educed from
forty-eight to forty per week.
M~inimrlun and average earnings altho-ugh~ less in dollars in 1933
wR~ere appr1oximat~ely equivalent in pu11rchasin power to those of
1929. and. payrolls were slightly higher tha n in 1929.
Somie further impr~ovemlents ar~e anticipa~ted~ thlrough ge~nerall opera-
tion of the Code pr~ovisions.

I findc that:
(a) Said cnde is w~ell designer d to pironuite thet po~lic~iei anld pur-
poses of Title I of the PNationral Indfustr~ial Rcov\ery! A~ct, including
removail of obstr~uctionls to the fr~ee flow of interstate anid foreign
comlmere whlic~h tend to diminish thle amounLllt thercc f and w nill p~ro-
vide for the general welfare by pr1omotinlg thle organization o~f indus-
try for the pulrpose of coopera~tiv-e action amonlc g ther trad-e groups,
by indluc~ing and runinintinling uniited- action~ of labr nd ma1lIni~agement
under ad-espilnto g:overnmelcntal1 sanctions andl superi~ viio, by' elimninat-
illg uiinfai r comlpetitiive prac:tic~s, by pr'llomoingr the fullle-;t. possible
ultilizationl of th-e present productive capacity of ind-ustr~ies, by
avo-cid'ing un due restriction of pr1odulctionl~ by in!-1creasing th~e con-
sumpntioni of imnlrltr~ial and agr.licenltura'l produ1Icts thlrough~ incr~easing
purlchalsing~ power.I' by redlc~ing~ and r~elieving ulnemployment,~cn by
iimpoing'".i standards of labor, annd by othieris~e re~nhbi lit ating

(b) $aid Indutrfl~ly normally employs not more than .50,000 em-
ployees''; and is not cla~ssifiedc: by me as a major industry.
(c) The code as appi~roed- co~mplies in all resp~ects; wTith~ the perti-
nent p~rovisions of said Title I of said Act, includ~ing~ withou~lt limi-
tation Substection. (a) of Section 3, Sub~sc~tio- n (n) o~f Sec~tacn r, andl
Subsecrtion (b) of Sectionl 10 thereor:f; alnd tha~t the ap~plican~lt associ-
ation is an indusltl idl :i-seeintio~n truly repl~aresntative~ of thre alforesaid
Indusrtry; and that said assadatio n imiposecs noJ iniequitable r~estric-
tions on admzission to mem~lbe,rship therein.
(d) Thle c(delr is not des~igne~d to and wrill no0t p~ermlit monI~opolies
or mon~llopolistic practices.
(e) Thre codet is not dlesignecd to and will not. eliminate or op~press
small eniterprises~ and will not. operate to discriminate against them.
(f) TIhose engaged in other steps of the economic process have
not been deprived of the right to be heard: prior to aIpprovan l of said

Fior these reasons this code has been approvoedl.
Huoru S. JOHN~SON,
AnL ~2~1, 1934.



To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code
of Fair Competition for the Bleached Shellac M~anufacturing TIndus-
try, and upon approval by the Administrator shall be the standard
of fair competition for such indlustry a~nd shall be bindingr upon
every member thereof.
SCECTION i. The term '" Industry as u~sed hierein means and in-
cludes th~e business of dlirectly or indlirectly bleachingr shellac gum
and/or prroducing bleached shellac by! any process or in any form
SECTION 2. The term pr~odulct~s" means btleachled shellac, and
such other allied commodities as are man:lufactured, imported and~/or
sold byF bleached~ shellac mianufacture rs andt hereinafter defined in
this Article.
SECTION ,3. Thle term "' member of the Industry means and in-
cludes any person, firm, corporation, association, or other form of
enterprise eongged~ in the Industlry either asc an employer or on his
or its own behalf.
SECTION 4. The term empgloyee ", as used herein includes any
and all persons engaged in the Indlustry, however compensated,
except a member of thle Industry.
SECTION 5. The term "L employer ", as used herein includes anyone
by whoml any suchl employee is compensated or employed.
SECTION 6. The term the Association means the American
Bleached Shellac Mlanufactu~rers Association, Inc.
SECTION 7. Thle term "' the Board of Directors means th Board
of Directors (as from time to time constituted) of the Association.
SECTIONT 8. The term "' the Executive Secretary "' means the Exec-
utive Secr~etary of the Association at the time in office.
SECTION 9. The term "L consumer "' means and includes only a per-
son, firml, or corporation who in the course of his or its regular busi-
ness uses, consumes, or applies products of the Industry in manufac-
turing or servicing another product or thing and who is not a
dealer, broker, or agent within the meaning thereof as hereinafter
SECTION 10. The term "L dealer means a person, firm, or c~orpora-
tion who purchases any product of the Industry for resale ini original
SECTION 11. The term broker means and includes onl a per-
son, firm, corporation, or other form of enterprise who is not directly


or indirectly retatinedl by or connected wit~ any~ iuemnber of the In-
dustry as agent, ori other~iwise, who dloe not purlchasee or resell prod-
nects for his owni account, b~ut w-hose busined~~consistss solely of acting
as an inflependent!l broker in negotiating sales between members of
the Industry and~ thirdl parties.i
SECTION i2. The termn agent macns andlC includes only a person,
firmi, cor~poration7, or other formn of enterprise other than a consumer,
dealer, or brocker, who is emlployved by a memlber of th~e Inldustry to
solicit ordl~erls for the purchase of the Intt~er's prlodlucts andl who does
not receive shipment of, pur~chase, ore sell any prlodluc:ts for his own
SEC.TION 13. The term ~" bleached shellac means re~gular dry,
bleached shellac, sometimes called L"bone dry ", kiln dry "` or vac
dr '", (the standard quality of which- contains not mor~le t'han six; per
cent moisturee)
Seenios 14r. Th~e term~i "r efinedl blea~chedl shellac means bleached
shellac, thle ~.tsltan~da quality of which containing noit over isi pecr cent
mocisturle, nor over two-tent'h s of one per cent o~f wax. and~ which is
free of rosin.
SEcTION 15. Th~e termi "C A &~ R Free means or~ngee sum11, bleached
shellac or cult shellne which is commercially fzree of aIrsenic andc ros~in.
SECTION 10). ne 1PCrllls ble,?ched hanks or~ freshl g!ound "
means blelnrhred shellac in such respective forms. thej standr q~n~~ -uality
of whlichi conltains n ot more than twen~ty-five per cent mlcistulr~e.
SE]CTI(; 17. ?'le teYm Oftn 0ll~ gllM) mle31S 311(. ilClludes Rny
orangire shellac gru in its o~ririnal fo~rm as cus~tomrlyn~l expiorted~
from ICndia.
~reTIno 18. TPhe term TN 1-" meltans an orange gumr oif standard
co~lor,. th-e standarn~d qluaity of w~hichl conta~inS not over thlree per
cetnt of rosin andl not over three per cent of a7ny content wh~lich is
inlsolublel in alcohol.
SEcTIONc~ 10. Ti10 tr0111 C"HEeart" mieans all orange gulnn of standard
color which contains no rowin andl nct over~ twon and onle ha:lf per cent
of any contenlt whi,-hl is ins~oluble in alcohol.
SECTIONI 20. The term "L Super~fine means an orange gum of
stfandne~ld c~olor which colntains no rosin andl not over one and;~ three
qua"rtersE per ~enlt of aIny content which is insolulble in alcohol.
SECnox:r 21. TIhe te-rnils cut she~llac "" and '' shellac varnlish mean
that pr~oduct. wFhich is c~omlpr~iise of bleanched~ shlellac o ojrangre gUur
dissolved in alcohol without the presence of other resinous matter
SEcTIONJ 22. The terms &-pound~ cit ", 41/2-pound cut ", 5-
pound cut ", etc., when ulsedl wit respect, to cut, shellac or shelloo
varnfish g mean tht pKroduct which is p reduced by the dissolving
of nthig exepttheindiented numnber of pounds of bleached
9lhellac~ or ornnge gum in one gallon of alcohol.
SEcenoxs L3. The terms "L President ", "Act "?, and "'Adminlistrator ",
as usedl herein, mean respectively the Presh~lent of the United States,
Title I of the National Indluitrial Recovery Act, and the Admlinistra-
tor for Industrial Rlecovery.



SECTION 1. 3/Ocim.MmIl~ Houra.--Except as her~einfierfc1 provided,
no emlployeez shall be permitted to w~or~k in excess of for~ty (40)hour
in any onle wTeek, or eight (8) hours in any 24-hour11 p~eriodf beginin
at midnight: provided, however, that for a total period of six (d)
weeksi in Any six (6) mioniths' per~iodl beginning on Janurlly 1 and
July 1, to take care of seasonal r'equir~ement emnployee s myn be
p~ermiittedl to work~ for~ty-eight (48) hours in anly ca~lendrl week.
Aniy factory employee whio works in excess of forty' (410) hours per
w~eekr, or eighth (8) hours- per dany, shall be panid timne andl a third for
buch overtimie.
SECTION ". Frcempt('ions. als to Hours'.--Fr'om the provisions of
Section 1, thec followinga Classes shall be exempted:
(a) Employeesc engagved inl anl eecuitive or supervisory enpncity,
wh~o receive not lessj th~an $35aT.00 per~ week, anld outside salesmen.
(b) Engineers, firemenl, mainltelnance and retpair employees, whlo
mayr w\ork; not mnore thann fortyr-fie (415) hours.i weekly, ex~cep~t by
palymenlt at the rate of time anld a thirdl for~ time in excess thereof.
(c) Truckmnnr who mnay workl not in excess o~f forty-eighlt (48i)
hours per w~eek, except by payml~ent At the rate of time and a third
for time in excess thiereof.
(d) Watchmee n who shalli not b~e perm~iitted to> workr moret than one
hlundr~ed and eigh~t. (108) hours~ in eachl two- weeks and shall have one
full day off in each sevenl.
SiECTION 3. No emlployetr shall kllnoingly' permit anyg employee
to wo~rk for any time whichi, when totalledl with that already per-
formed w~ith anothier employer or emiploy~ers, exceeds the amuounit
permitted her~ein..

SECTION i. AinlitnNllll Ifay!es.-- Except as hereinafter provided,
no emnployee in this Indcustry~, others than outside sailemenii, shall be
paid in anly pay period less thian at the rate of forty (40) cents per

SECTION 2. AccounltingE, cler~ienl alnd other office employees shall
be pail ut. the rate of niot. less than fifteen (15) dollars per w~eek,
except that office or~ er~randt boys between t.he ages of 16 anrd 18 y~ears,
not to exceed one to ench plant may be paid not less thani twelve
(12) dollars per wee~k.
CEC.TION 8.P/CN O lil yPIom (l ietorlO--JfI~rcnlm Tiage8.--This
Article establishes a2 minimum r~ate of payt~ which shall apply,
irrespective of whether an employee is a~ctualtly compensated on a
time rate, pieceworki, or other basis.
SECTIONu 4. WagceJ aboLe MCi~i~nimr.--No member of the Indust~ry
shall reduce the compensation for employment nowcr in exc~ess of the
minimum~ wages herein fixed (notw-ithstanding that the hours worked
in such employment mnay be hereby reduced) and the pay for such
employment shall be increased by an equitable adjustmener t of pay
sch edules.
SECTION 5. Female11 Eml)yoyeesB.-Female~ employees per~formningg
substantially the samne wo~rk as male employees shall r~ccive t~he
same rate of pay' as mialle employees.
5439)2 -482a- 137-34 2


SECTION 6. Hond~jCIPCapd Per~sons.--A person whose earning capac-
ity is limiited because of agre or physical or mental handicap mnay
be employed on ligh1t w~ork at a wage below-v thle miinimum established
by this C'ode if thle employer obtains from- the State authority desig-
natedl by the Unitedl SCtates Departmient of Labor a certificate author-
izing his emplloymeiint at. such wngaes and~ for such hours as shiaH
be stated in the ce~rtificate. Each emp~:loyer shall file with the Code
Auth~or~ity a list of all sulch personal employ~ed by himi.


SIEC'TION i. ('///tl LGSOi.-- T OperkOD unilel blteen (10i) yeafy Of
age shall be empllloyed in thet Indc-ustry. Nop1 Ierson:,I undCer eighlt~een
(18) vcears of age shall be emplloyed at operations or occupations
whlichl are hanzardous in un~tiure or dlangerous to healthi. The Code
A~uthoruiity shall submirit. t.o thle Admi nist rat or be for~e n inety (90:)
dayvs after. aypproval of this Code a list of suchl op~eratins or occupn-
tions. In any State an emiiployer~l shall be deemedn~i to havei compliedl
ith7 thliS pr'ovisiOn as to age if hie shall h Iave onl file a cer~tifients or
perm'llit duly! signed by the Authoriity in uchi State emipowereed to
issues emlploymllent or agre certlfie(ntes or~ permllits showirngjt that thle
employ,~ee is of t-he required~c nee.
SECTION L9. II colnliplianlCe~ withl Sc~tion 7 (4) of thle Act. it is
(a) That empilloyees~c shall h~ave thle r~ight to ol.rgnize andi bargain
collec~tiv~ely thlro~ughl r~epr~cscti\entaive of tleir' own~ chloosing. and~ shall
b~e fr~ee frea~n thle inter'fe~iren~c. relstrafint. or' coercion of emplloyers of
labor, or thetir agnt-. in thle des~i Intionl of suIch l.lrepreslntatives

of cOBOlrri\ lve bilrymil lll O tlier' Illltrl iicud c810 Of protedltoT.
(b) That no empinloyet e and1 nlo one( Seeking~ iiuplloymentil shall be
r~eq~uir.edl as a 'ondr:itionl o~f enlll~oymerl~'It to) joini ally3 c~ompny union or
(O000811frll ]1011. O,, Of IsiSAfillipr : laboiri OrgllliZatlO n
of hiis ow\n choosing..
(c) Thant emp~loyer~!-; - labor. murinimumi rantes of pay,' and\ mother cond~itions o~f empl~,oyment
apprlovedl or preicr~ibedl~ by thle Peie
SilEC'TION 3. R~c~llsassicat Cion. oft Employ c~l.- S.-o empllloyer shlall
recrlassify employeesi~ or dulrties of oc.cupal~tionls performed~c or engage in
an ohe sbtrfuefr te uosofdftin thle purposes or'
p~rovisionls of thle Act or1 of this Codce.
SEC.TION -1. Standoolr'ls for/ Sa/fety;f ~ am./c Healthl.- Ev:\ ery emlll~oyerl
shall mak~e reasoniable ,rov-ision for the safety- and health of his
employees at thle pinee anid- dluringf the hou1rs of thleir' empllo~ymlent.
SECTION 5. Staft. Latl,!.-NoT prlovijSion inl th~iS Code shanll super-
sedle any S~tate or' Feder~lal Inw which imp~oses on em~nployers mnore
str~ingen It. requirements as to, age of employees, wages, h~our~s of work,
or as to salfetyl, health. sainitaryv or g~eneranl working~ conditions, or
insurance, or fire protection, than are imposed by this Code.
SEcTION 6. PO~tf/i(.-All emrployers1 shall p~ost. coinplete copies of
this Clode in conlsp~icuous places accessible to emlploy~ees.




SECTION i. TI1000 shaltl fortliwithl be constituted a Codle .Aut~lhority
which shall consist of (a) the Boardl of Directors, and (b) the
Executive SEecrectary!, andc to which~ may be addced (c) not more than
three members. without v.ote andl withlout expense to the Industry,
appointed by the Administrator. The admninistrantion of the Codeo
shall be undller thec direction of the C'ode Autho~rity' which shanll hiave
all t~he p~owers alnd dulties cocnfelrredl upon it. by thet Codte andl gen-
erallyv all sue!1l other powrnc a;: ndl duties asi shaull be~ nece-sary or pr~oper
to enable it fully to, adminlister the C'ode andi to effrectunte it- purpose.
SECTIOjN 2. Unler' tille flilfectlOIi of the Co000 Iuthority, the Execu-
tive Secretary shall act as the~ executive ofilker with respiect to the
admlinistratio, n and enfor~cemnent o~f thei Codel; her shall keep all books
exceptt books o~f necou~rnts) and~ Irecords~ ulnderl the Co-de andl, ex~cepc~t
as such~ C'ode Aiuthiority shall o~therw~is-e proc:vidc, shall collect, file,
an~d collate all statistics zand otherl informatio~n reqcui~red by the C~ode
Authority for the prlop~er admllinistra~tion11 of th~e C'ode.
SECTIOS ;3. The Colie tAutl~Oit' llall Ilave poWc f {00111 f -imitiie t0
timie to apploinit andl remiov'e andl to- fix the c:ompnlsat:7ion1 of all such
other officelrs and emp~loyees anrd all suc~ acColtuntats,, attorneys, and1
experts as saidl Code Aulthlority. hall d~eeml nlecesary! or proper for
thle purpose of adml"ini.sterin theCod
SECTIONS -1. ntlellliePl S O~f tllt Ill(.ustlV ltll !.10 rititledl to partici-
pate in andc share the beniefts of the netiv.ities oif thle Code Aurthority
b~y asse~ntinlg to, and c~omllying w~ithi the r~equiiremeiln ts of thiis Code
anId sust i ni ng t hei r equllita ble andl proport''iona te isharIe of the expense
of mainitiningr i the C'ode Authoriity andir its ne~tivities;. Suchi equii-
table andt proportionate share of the expenses of maintaining the
Code Auithority andc itsi netivitie~s shall be determllinedl by the Code
Author~ity, subject to rev\iewr by the Adlministr ator, on the b~asis of
volum~e of businecss and~ or1~ such1 mother faetors~ as mayv be deemled
SECTION j. Thle C'ode~ Auth-oi~t r itym fr~osii tillne to trille apploin.t
su1ch conunlittees as it shall d~leem nlecessalry or pr1oper' inl o-rder to
effectuate t~he purposj~ies ojf the Ac~t and th~e admlninistrnt~ion~ of the
provisions of the C'ode, anw it mayu~ delegate to thle Exec~utive Secre-
tary anl/'or any sulch committee gener~ally or in parn~ticulalr instances
such of th~e powers and dluties of the Code Aluthority~ under the Codce
as suchi Code Authority~ shall dleemI necessary~ o prop~er in order to
effect~uate su~ch purposes, prvided thant nothing hcre~in shall relieve
the Code Author~ity of its duties and r~espjons;ibilities uind'er this Clode.
A~ny member of' such commiittee mlay be a member of thle Codte
Authlority or an officer or a director of a member of the Industrv
or a person not hanving~ anyI official connection with anyr member o
the Industry or with the Association, as the Code Authority shanll
deem proper.
SECTION 6. Nothin~ contained in this Code shall constitute the
members of the Code Au~thority partners for any purpose. Nor
shall any member of the Code Authorit~y be liable in any mannr


to any onle for' any act. of any other member. officer, agent, or emu-
playere o~f the Codle Author~it~y. Nor shall anyl mlembler of t~he Code
Atority, exercising r~ensonnble diligenc~e i n tile conduct of his duties
he~lrrMeunde. be liable to anyi one for any action or omission to act
undler this Codle. except f~ori his ow~n willfull misiftsnnee or non-
SrEnTowi T. The Cod~re Authority shall havec power fromn time to
timie to r~equrire each miemnber of the Ind~us-try! to, furnishl. and each
miemiber shall fuirnishi. to the Execultive Secretaryl or other neutral
ag~enlcy designa~ted~ by> the Code Author~ity~ uch trule anid necurate
informatintonn and reporits concerning the prdein hjipmnents. pur-
chases, s~ales. contraucts. andi unfilled- ordlers of slch memllber' and the
hiouris of labor. rantes of pay, andl othe c~ondlitionsl o~f employmenFnt at
the factory or factor~ies of such~ mlemnbe. anrd su.1ch ther informiatio n
as the Code Authority shall dleeml nlec~e-on! (r or luper in order to
efftctuazte the purposes o-f the Code andl ther poli(-y of th~e Aict. The
Codle AulthlorityS may require t~hat. any sic-h inlfollrmation he furnished
period-ically at such times as it, shall specify and may! require that
any aind all informaltion n furnished be swor~n to or otherwise certified
oi'r uthentientedl as it shall prescribe. Failur~e of any mnemb~er of the
Indrustry. toi promnptly' fur~nish1 to the Excucrtivec Secre~ctary.\ or suchl
other dleaignatedl aency iniformnation requiired lvg thp Code Aulthority.
andi substantiallyr in t.he form~ prerscribed by! it shalnl cocnstitulte a
violation of the Codle unless the Admiinisi~trator drcides that such
informalnt io~n is not necessa ry for the prop-er admiin ist raitlon of the

SwECxc h 8. Any andc all information n furnished to the Excutive
rSecrtary'fll? or)1 o)ther d1~Esignated~ aent by aIl! nf member of thle Ind.ust~ry
sharll bej subject to check~ing for the purposes o-f v~rifcationl. if a viola-
tion of the Ccde~ be Lsuspe~tcted. by9 an examir nationl of thle b:ooksj and
arccounlts and- Irecords~ of 51uch) memnbe~r by any nccountntirt or~ ne~rount-
ants o~r oither~ impnr~tial person or persons simnilalvrly ualified andl
designatted~ byI th~e Codet Authlor~ity a2nd~ shall be so- chicked~i for suchi
purpose"~ if the C'ode Aurth~ority shall require it. buit if su1ch miemnber
of thec Industry'! objects to, an examiinationi bcing mladle br any~ such~
dlesiginatdc~ agienlt, Iw shall havre t~he op~tioni to request thant suchl
investigationl be~ miade by~ thle Federal Tradle C'cnunissiion or~i other
gover~nmental a agency appr?1ove d by the Adlminist~ltrator, prov-,ided, h~ow-
\ever, thiat thlic p~lrovision sh1all not deprive any individual of hiis
constitutional rrrights undler tle .5th andl 14thi amendmlents of the
Consititultion of thle U~nited Statets. The cost of each~ sulch examinia-
tion shai~ll be treatedi~ a~s an1 expense of adlministeingin the C'ode; pro-
videdl i, however that if uponI Suc(h examlination alny such11 inlform1ation
shaI I( ll beshon to, have beenl incorrect or misleadling in any mnaterial
resp :t..s. uch cost shall be paid by the m~ember of the Industry which
furni hed~ such~ inlccorrect oir misleading information. Any member
of the Induslitry! .-hanll hav~c t~he right to appeal to thle Adi~clnistrat~o r
as to the reasoabcl;l lr prlopr~ietyr of an examlination of the character
abovet retferredc to~.
SECIoCN D. (n') Any? clata or Statistics, t~he characte r of which in
the op'inion oif thec ('odeI AutIChority is of a confidential nature, shall
not b~e dtiaeminat~lted ecpct-t inl combination withi other data andi sta-
tistics of a like character so as not to disclosed thle data or statistics


L of any individual company, except in such instances in which the
t Code Authority deems that such disclosure is nece~ssary or proper
b for the proper administration of the Code or the effec~tuatio~n of the
policies of the Act, and except as follows:
(b) In addition to the information hierein required- to be sub-
F mitted to the Code Auithority, all persons Hrubject to this Code shiall
furnish such statistical information as the Adlministrator may deem
necessary for the purposes recited in Section 3 (n) of the Ac~t to
such FederalI and- State Agencies as t he Admriiinist rato~.nir ma desigvnate,
nor shall anything in this Code relieve any person of existing~ obliga-
tions to furnish reports to Gov-ernmentt Agencies.
SECTION 1C). The Codelr ;utlhor~t l also Sh~nll htn\ tile fo~llO\Ving~
further pow-er- andl dulties:
(a) To insurec thle exec~utioln of the p~irovi~ision of this~i Codetl subject
to rules and regulation ns approved byl the Admlijt nitento and provide
for the comlpliancre of thle Indus~t.ry w~ith th~e pr,~ov'i ions hereof.
(b) To adopt by-law~s and rulesl l~ an reglalti(ons fo~r its prccedlure
and for the. administration andl enforcement of thet Codle.
(c) To use thle Asso;.~cIiation~l or1 such others ag~ents ort conunrittee~s for
t~he crnrying-- --J' out of any of its activities p'rov~ided fori hierein, provided
that 'nothing her~ein shall relieve thle CodeP A~uthority of its duties
or responsibilities und~er this Code.
(d) To cooperante w-ith thle Admlinictrato~r ini regulalting~ theC uc; of
any N.R.A. insignia olely by thocse mlem~ber~s o~f the Induistry who
have assented to and are~ colmplying with this~ Cod(-e.
(e ) To I~recommendin to t he Adm in i it en tor fur Ithler fa ir1 ~ trae pranct ice
provisionsi to govern members of the Ind-ustry in their relatio~ns with
each other or with other ind~ustries andi to recommendcl to the Admnin-
istrator mlensures for industrial planning. inc~ludling Stbilization1 of
(f) To enuse to be prepared a unliform formulau of cost tindino-
wit~hin sixty (60) days of the approval of this Corde. the uise oiT
which w-ill dlisclose the cost of manuafactur~e and distribution of
Upon the completion of thle prepara'tioin of such uniform formula
and its approval by the Code A~uthority' and the A~dministrator,~~r
every member shall use such cost formu~la.
SECTION 11. To make recommendations to the A~dministratorl fo~r
the coordination of the administration of this Codle with such other
codes, if any, as may be related to the Indulistry or affect members
of this Industry.
SECTION 12. ZEach trade or industrial association directly or in-
directly participating in the selection or net~ivities of the Codle Au-
thority shall (1) impose no inqu itable restrictions on membership
and (2) submit to the Adminisrator true copies of its articles o~
association, by-lawrs, regulations, and any amendments wheni made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem necessary
to effectuate the purposes of the Act.
SECTION 13. In order that thle Code Authority shall at all timies be
truly representative of the Industry and in other respects comlply


with the provisions of the Code and purposes of the Act, the Admin-
istrator may prescribe suich hear~ingis as he may deem proper; and
ther~enfter if he shall find that the Code Authorityv is not truly
represeilnttive or does not in other r~espects comply with the provi-
sions of thle Act. may require an appropriate modification in the
method of selection of the Code Authority.
SEcTION 14. If t~he Admiinistr~ator shall determine that any action
of the code authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administr~ator may require that
such nation be suspended to afford an opportunity' for investigation
of the mnerits of such action and further consideration by such code
authority or agency pending final action which shall not be effective
unless the Admlinistrator approves or unless hie shall fail to disap-
prove alft~er thirty days notice to him of intention to proceed with
such action in its original or modified form.


SECTION 1. AIll products of the Industry shall be sold or contracted
to be sold only on the. basis of openly published and posted prices,
terms, and conditions.
SECTION 2. 0110 Of thle members of the Industry shall make any
sale of, or contract to sell, products at a price or on terms and conl-
ditions more favorable to the purchaser thereof than the prices,
terms, anid conditions established and published by such member, in
the manner hereinafter provided, and in effect at the time of such
sale or contract to sell.
SECTroN 3. (a) Each member of the Industry shall, within ten
(10) days after the effective date of the Code, file wit~h the Code
Authority, or such person or agency as may be designated by it, a
list showing the base prices for all1 of it~s products and all of the
terms, conditions, differentals, and other sales particulars applicable
thereto, and from and after the expiration of such ten (10) days
such member shall at all times maintain on file with the Code
Authority or such designated person or agency a list showing the
base prices for all of its products and all of the terms, conditions,
differentials, and other sales particulars applicable thereto, and shall
not make any change in. such base prices, terms, conditions, differ-
entials, or other particulars except as herein provided. Each such
list shall state the date upon which it shall become effective, which
date shall be not less than three (3) nor more than five (5) days
after the date of filing such. list wirth the Code Authority or such
designated person or agency; provided, however, that the first list of
base prices, terms, conditions, dilfferentials, and other particulars filed
by any member of the Indust~ry as above provided shall takre effect
on the date of filing thereof. Nonle of the base prices, terms, con-
ditions, differentials, or other particulars shown in any list filed by
any member of the Industry as herein provided shall be changed
except by the filing by such member with the Code Authority or
such, designated person or agency ofE a new list of its base prices,
terms, conditions, differentials, and other particulars which shall
become effective on the eflFective date theremn specified which shall


not be less than three (3) nor mlore than five (5) days after the date
on which such new price list shall have been so filed.'
(b) Notwithstanding anything hereinabove contained, ea~ch metm-
ber of the Indus~try whose last list of base prices, term~s, conditions,
differentials, and other particulars so filed was filed prior to the
filing by another member of the Indlustry~ of a list. conitaining new
prices, terms, conditions, differentials, or other particular~s for the
latter's products, shall have, inl the interest of full anld fair competi-
tion, the right t~o file a new price list. effective less than thElce (3)
days after the filing thereof, but not sooner~ than the effetive date
specified in the new price list of such other memiber.l
(c) Each member o~f the IndustryS shiall continue to publish and
file as hereinabove provided alnd before any changesr are made, the
prices quoted and, or chargled by it for pr~odu~cts o~f the Industry,
and all terms, condcitionls; differe-ntials. andl otlwe~ particulars appli-
cable thereto, in such mariner as in the op~inioni of thne Code A~uthority
will enable interested mnemibers of the tradl e andr the Inting iipublic
to at all times ob~tnin neeulrate information as to~ the prices, terms,
condiitions, differentials, andc other parltic-lulars; oif such memberl~~l..
SECTION 4. NO mnemb~er of the Indlustry~ shal1 1C'l act borders' or make
contracts at oldl prices, termsn, or.L d.ifferellfntls following t'he~ ffctive~
date specified in such list of challenge~ as~ mayl be filed inr necordancenl
with the provisions of Article V'II of thle C~ode.
SECTION 5. N\o memberC'I of thle Induslltry~ hall~ pay or al~low\ to
buyers of products secret or unipublililhe com~lruission~s, bonuses, re-
bates, refunds, credlits, unearne~d disco~unlts, or .subsidies of any\ kind,
nature, or dlesc~riptionl, co~nfidential pi~ce, or use: anly dvcet\j.t which
tends to conceal, or mi len; d as to thle tr~ue cons!~idera~tionr. TIhis a~lso
applies to contrneti for the exchiang~r e f such products for any other
commodity or thing andt or the conlcurrel'nt orl' related sale theretof,
and no evansionis or sub~terfugert s shall b~e pli noticed or permiiittedt under
such gulise.
SECTION 6. Tra7nb1portati onI chaI~rgs constitutf e a small per~cetage~~c
of the cost of products t~o the consumerl b~ut in manyr cases a large
percentag-e of gr~oss p~rofit. to the mal~nufalct urer1 and thue absorptio nl of
such chargers by some mannulfac-turers~ ofteni constitutis a dlestr~uctive
method of confpetitioni.
Therefore, all qulotations, o~ffers to sell, contracts of sale andi sales
made by any mlembe~r of t'he Indutr~~ly shall be mlade f.o.b,. one of
the ship~pingr points sp~ecifiedl in its then current list. filed in accor'd-
ance with Section 3 hlereof and any and all transportation charges
from such shiplpingr points shaill be added to and not ab~sorbedl or
included in the published pieteef
SEC'TIOIN 7. MemlberI s of~ic the Indusry cannot generally obtain
definite commnrit ments for the purchase of raw materials for more
than three (3) months in advance.
Therefore, comimitmients for t~he future sale and delivery of prod-
ucts shall be made or entered into by members of th Induxst~ry only
by written contract. containing all of the termis, conditions, and par-
ticulars of sale; such cointract shall be for a specifiedl product, quan-
tity, and quality at. a specified price for delivery not later than the
end of the third calendar month next following and shall be made
a See paragraph 2 of order approving tble Codle.


and entered into in good faith between buyer and seller, strictly
adhered to, and enforced and subject to no extension or cancelation
save for legal cause. Orange gum, however, may be contracted to be
sold for periods beyond those aforesaid.
SECnON 8. No contract shall be postdated or predated except to
conform to a. bona fide agreement for the purchase and sale on the
predate, nor shall contracts be written without authorization and
definite commitments at the time the same are made by both parties
(SECrTON 9. Options to purchase products shall not be granted.
All quotations shall be made for a specified product at a specified
price and subject to changes in price in accordance with the provi-
sions of this Code. Negotiations for sales which are not definitely
concluded at t~he effective date of a price change shall be contracted
for only on the basis of new prices.
SECTION 10. Differentials shall be uniform and publicly announced
to the end that all customers entitled thereto shall receive the same
fair treatment. Differentials shall be based only upon grade, the
location of shipping points, thle quantitye contained in single deliv-
eries to the same customer or upon the nature of the container.
SuncION 11. lifembers of the Industry shall in all instances adhere
to the terms of payment which have been standard in the Industry
for many years and which are "1%~~tI discount for cash payment in
10 days, 30 days net". The discount for early payment shall in no
event exceed one per cent. Such discount period shall not exceed
ten days from, andt the period of free credit shall not exceed thirty
days from, the date of shipment and invoice.
For all purposes of the Code, the following acts or omissions shall
constitute unfai practices:
1. The sale of products by any member of the Industry for a price
lower than the cost thereof, as defined below, except that nothing
herein contained shall, however, be construed as precluding any
member of the Industry fromo selling products at a published price
toequally as -lowFc as that of any competitor whose price Is not in viola-
tio ofthis Code. Suchz cost shall include at least (a) the total
mlarkiet replacement cost of all ingredients and materials consumed,
based, insofar as orange ~gum. is concerned, upon lowest actual daily
qulotations received by cable byr the Niew York agents of Calcutta
shiippers, to be recorded by the Association and to be regarded as
accurate within one-half cent a pound., unless a different tolerance is
required or approved byT the Administrator, and based, insofar as
other or accessory raw materials are concerned upon market replace-
mlent cost as determined from published prices or actual market
tranactons (b conainrs,(c)all direct processing costs such as
owr and labors, (d) allothers fC1actory 'labor, (e) sales commissions,
and (f) transportation charges when products are sold f.o.b. destina-
tion. However, after such time as the uniform cost accounting
formula provided for in Section 10 (f) of Article VI has been ap-
pro~ved, each member of the Industry shall use such uniform cost


accounting formula in determining hlis cocst bas1edl upon the items of
cost herein set forth.
2. WVhenever a pr~ice specilled by a mnemlber of the Inldustry in a
list published and filed pursunnit to the pr1ovisions oif Acrticle VII
of this Code is so low as to be. in the opinion of thle C(,del Author~ity,
less than its cost. based on the abo~ve items~, thle GrCoe Autho~rity shall
investigate such member's costs and in connection therew\ithl it or its
designated representative shall, in necolra~nc with and- subject to
the limitations and conditions contained inl Article~ VI, Setction 8 of
this Code, have the right of access to And examinaitioni of the boorks,
papers and records of such mecmber. If t~he inv\estigation d~iscloses
the fact. that such price is b~elow such cost, thle Cod~ie ~Authority shall
so advise the members. If fthe~ mmcn ber does nlot r~ev-ie his price so as
to comply with the prov-isionsi of this Codes, thle Code Authority shall
present the mantter to proper Government Agrencies for hearings andc
atppropriat~e action; prov-ided. how-ever, that nothring herein limits
the power of the Code A~uthor~ity to recport a~ viola~tionl to Governlment
Agencies at. any~ timie.
3. Directly or indir~ectlyl disclilirimnating~ ori nikingl~i var~iationrs in
the prices charged or terms mlade to, iitle~rent. prehmerlnc~ls 13rovidied
that nothing hiereini contained shall11 prevent d-iscr1imilnation in thle
prices charged on account of differen~cel~~ inl the quanutities conitained
in any single delivery3, or that mlakes onlly~ due altlowa~nce for dliffer~ence
in the costs of transportationl or' col~niltaers, or the charg~ing~ o-f a
higher price fo~r special service or suplerio r qulity.
4. No member of the~ IndlustryS hlll give, permit, to be given:, or
directly offer to giv\e, any!thling~ of vanlue for' thle puirposet~ of inffluencing
or' rewfardingr thc acltion orf aIny. eployee. ager(nt or r'eprese~ntaftive of
another in r~elation to the busin~ess of thel emloyer\.~ l of such employee,
the principal of suich agent or the r~epr~etsented party, without the
knowledge of such em~ployer, principal o~r p~arty. Commeretcal b~ribery~
provisions shall not be construed to prlohlibit fr'ee andl general dis-
tribution of artic~les c~onulnonly us~ed for advertising excepl-t so far as
such articles are actually u-ed forl commercial bIribery as here~inalxcive
5. Selling any product whichl is not inl full comlptliace with legal
and trade definitions andl free fromi adulterato.Taeeintions.
include those contained in the C'ode -r appr~oved by~ thec Nat~ional
Bureau of Standartds and legal definitions include, those pronounced
by the Courts and those rulings of thie Federal Tr~ade Commiission
which provide that ( a) the ter~ms' "shellae "' or "' pure shellne shall
notbe sedindesribngany product unless suchn p~od:uct consists
solely of shellac, eitherdrordsoedn lhoadth uc
terms mean that. the product so described is free from adulterantions,
modification or reduction, and consists solely of shellac gumn, either
dry or diss;olved in alcohol; (b) the terms shellac compounds ",
" compound shellac or shellac: mixture shall not be used in
describing any product, compound, or mixture unless such product,
compound, or mlixt~ure consists of alcohol in which has b~eenl dissolved
resinous material only, of which resinous material not less than fiftyS
percent by weight consists of pure shellac gum; (c) any product, com-


pound, or mixture the soluble content of which consists of less than
fift~ percent, by weight of pure shellac gum shall be described only
as 'shellac substitute."'
6. Afisbra~nding, t.he sale or off~r~ingI for sale, of any product with
the intent to, or under such cir~cumtstaces as tend to deceive cus-
tomier~s or prospective customers as to quantity, quality, cut, condi-
tron, or ing~redlients of such product, or the use of miisleadinga or
untruthful adv~ertisingr or sales propaganda.
7. W~ithholdling fromn o mnsertingr in any invoice facts which make
such invoice a false or misleanding record, wholly or in part, of the
transaction reprieiiented on thle face thereof or the dating of an in-
voice as of somle dlate other than the true date of th~e shipment
reflected there~in.
8. Induc:ing or attempting to induce the breach of a contract
between a competitor andd his customer.
9. Mlemberrs of the Indlustry shall recognize t~he right of employees
to use all honorable and reasonable etforts to better their conditions,
but shall refraiin froml dlirectly or indirectly soliciting or bidding
for the! services of thle employee of another member. Only when such
an employee tAk~es the initiative shall a member of the Industry have
the right to negotiate with him about prospective employment.
10. The defamation of a competitor by words or acts impuitingr to
him ishnorble ondctinabilityr to perform contracts, or ques-
tionable credit standing, or the false disparagement of the grade or
quality of his go.ods.
11. The allowance or palyment of any broker's or agent's comnmis-
sion or compensation to anyone except a broker or agent.
12. Sales by members of the Indlustry, their agents or salesmen,
of products for their own account, or for other members of the In-
dustry, or for customers or purchasers, unless such sales are made
at a price not lower than the lowest price then published, filed and
;effective pursulnnt to th~is Clode.
13. Storing prodlucts in customer's store or warehouse and allowing
storage or other credits to the customer in regard thereto.
14. No sale of products of the Industryv shall be made by a member
thereof to any deat~ler unless there be obtained in connection with such
sale a binding stipulation on the part of such dealer that such prod-
ucts will not be r~esold at less than the lowest then effective price
published by anly memlber of thle Industry pursuant to this Code.
15. The practice of grannting extenlsions of time in which to take
delivery of products under contract, to buyers who have failed to
fufi~ll their obligations thereunder and 'or who have permitted such
contracts to expire without fullfilling the provisions thereof as to such
16. Mtlaking advance shipments so as to arriv-e at a time or times
other than within contract period.
17. Whereas excessive conunissions have, on occasion, been paid to
agents and brokers for the sale of products of t.he Industry, which
has resulted in such comnmisrsions or brokerage being paid directly
or indirectly to the buyers, the effect being t~he publication of ficti-
tious prices, the unfair extension of partiality to one customer as
against another, and the inability of the trade to know at all times
Ithe actual m~ark~et for such conunodities.


Therefore, it is declaIred that thle paymlent of excessive conunis-
sians is an unfair practice and~ any4 commnrissions in excess of the
following shall priman facie bie prIesumed~c t~o be excessive, to wTit:
Or'angeu giutt ___________ ___________.______ 1. cenlt per pclund.
Bleac~hedr ,hellac __ __ __ __ __ __ __ 1 ceul per Ilound.
Cut shceline ______ __ ___ __ __. 3 percent.
Any embr o th Inusty my, oweiver, pay to a bonn fidle
agent or broker such other ra;ites of conuni ii- ioni as, after investigiationl
to be madte upon request, the Code Anitiority,4 subject to the dlis-
approvanl of the A~dmiinj i'trator, nuinv detrf m1I ine to be no0t in fuet
excessive andl not te~ndilng to frusi~trante thie cpir~it of this Section.
18. The invoicing~ of p-roducilrts to- any\ Ianltlabinel r so~ as- tontitle the
latter to a publishledl quantllit. cif~ferentlial whiliel in factlc acltul eliv-
eries are split or madelt in such~ a aInrls;er a not to) malke such'l differ-
entials properI' ly aplienble therleto.
19. Special allowa-nlces by wayr of cdiwantllf~ Il brokerageP storage,
or advertising; variationcs fromll cipenil\. :Innounrr ced andl p~ublishedl
prices, terms, dlelivery, or packageii ~lltteretia~lS; delayed- biillng;
full or partial dis~ounts~ inl en--es o~f de~~i'tl yed payment; andt reba~tes or
other allowance s by\ any1 namell( (Ir if aIny Iinture't.

charges therefore.
21. Consignmnent of prod~cucti toi anyI! but auithor~iizedl agnt<.
22. The makings of colntl~rats wTith guarantees~~ against clcuine in
price, and also t~he r~ewrit i I~(ng olr aliti(.nlt ion of conrnets.lcf after priice
reductions, becau-e of ach..l I'edner.tionsl.
23. The delivery\ of prlod~urcts t ra:lnsprl ltalt ionl chaIrges propnl)id, at
any place, unless~ suich c~harges arle givenl clue consid:eraionti ~ in de~te.-
mmning th)e co-st. andt selling~ prlice~ therc-c f andlt are addedc~ to t~he
selle r's publiishetd price for its ipIng pint nea:1rest to such
destinat ion.
24. Thle r~equir~ing that any' goods~l he( purllchased' orI socld as a pre'C-
r~equisite to thie plrc~hase or sale o.f prodcnllcts o-f the Indlustlry..

SEcrrowj 1. This CIode and1~ all thle prov,\isions ther~eo~f are expressly
made subject. to the right olf thle Pre~sident, in accorda-l nce w~it~h the~
provisions of subsiection (b) of Section 10~ of the Act, froml t~inlle to
time to exlcel or modlify any order, apprloval, license, ru~le, o r~egula-
tion issued underl saidl Act.
SECTION 2. Thlis CIode, excEp[ t as to~ provisions r~equiredl by the Act,
may be mlodiielle on the ba~sis of experience or changes in cir~cum-
stances, such modifications to be basedl upon app'lication by? tlhe Colle
Authority or other interestedl parties, to thie A~dmninis~r~trator and such
notice and hearings as he shall specify, and- to become effective on
approval of the Presid~ent.


No provision of this Code shall be so applied as to permit monop?-
olies or mnonopol!istic practices, or to eliminate, oppress, or discrim11--
nate against small enterprises.


3 1262 08851 8070
This Code shall become effective on the second Monday after its.:
approval by the President.
Approved Code No. 403.
Registry No. 611MJ1.