Code of fair competition for the fibre and metal work clothing button manufacturing industry as approved on March 17, 1934


Material Information

Code of fair competition for the fibre and metal work clothing button manufacturing industry as approved on March 17, 1934
Portion of title:
Fibre and metal work clothing button manufacturing industry
Physical Description:
p. 155-167 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Button industry -- Law and legislation -- United States   ( lcsh )
Metal buttons -- 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. 1612-04."
General Note:
"Approved Code No. 341."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004939870
oclc - 652515429
System ID:

Full Text








Por sale by the Suprntendent of Documents, WKashington, D).C. - Price 5 cents

Approved Code No. 341

'Registry No. 1612--04




This Publication is for sale by the Superintendent of Documents, Government
Printing Olffice, W'ashington, D.O., and by3 ditrct offices of the Bureau of Foreign
and D~omestic Commerce.

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MJinnleapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Custombouse.
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Philadelp-hia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chbamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, MIo.: 506 Olive Street.
San Francisco, Calif.: 810 Custombouse.
Seattle, WCash.: 809 F~ederal O~ffice Building.

Approved Code No. 341



As Approved on March 17, 1934


An. application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recover Act, approved June 16, 1933, for approval of a Code of
Fair Copet~ition for the Fibre and Metal W~1ork Clothing Button
M2lanufacturingr Industry, and hearings having been duly held thereon
and the annexed report on said Code, conltaining findings with ree-
spect thereto, having been made and directed to the President:
NOW~t, THI-EREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recove~ry,
p-ur~sutnt to authority vested in me by Executive Orders of the Presi-
dent, includringr Exrecutive Order No. 6543-A, dated D~ecember 30,
1933, and otherwise; do hereby incorporate by re-ference said annexed
report and do find that said Code complies in all respects with the
pertinent provisions and will p~romlote the policy and purposes of
said Title of said Act; and do hereby order that said Code of Fair
Comp~letition be and it is hereby approved, subject to the followingg
prov-isions :
1. That the provisions of Article VII, Sect~ion (a), insofar as they
prescribe. a wai;&tingr per~liod, between the filing of thne Code Auth~ority
and the effective date of' price lists, as originally filed and/or revised
price lists or revised terms and conditions of sale be and they are
hereby ata~edl, pending my further -order either within a period of
sixity (60) days from the detective date or until such time as there
shall be a completion of the study of open price associations now
beingla onuthe by' the National Recovery Ad~-~m i nistr1ation.
2. Tat he pplcation of ~Article V, Section 7, of the said Code
be stayed for a period of thirty (30) days from the effective date of
this Code and further until such time as there shall be a hearing to




determine rules and regrulations of the home work provisions con-
tained in said Code and the dertermlination by t~he Administrator
Admtinristrator for Indulstr~ial Reco-ve~ry.
Approval recommelndled:
Division A ministrator.


Th! Ac hite H~iouse.
SmR: The Public H-earing on the Code of Fair Competition for the
Fib;re andl M~tal Worrk Clothing Button Industry as proposed by
the Americann Fibre and MIetal Work Clothing Button Manufacturers
Bureau was conducted in Washington on October 12, 1933. Every
person w~ho requested an appearance was fairly heard in accordance
with the regulations of the National Recovery Administration. The
Code has the approval of the Industrial, ILabor, and Consumers'
Advisory Boards of the National Recovery ALdministration' and of
the Legal Division. The Secretary of the American Fibre and Metal
Wtlork Clothing 1Button M~anufactulrers B~ureau, upon. the written and
telegrapuhic authorization of all the members of the Industry, has
also indicated his approval of the final draft of the Code on behalf
of thie I~ndustry.
It was attempted first by the National Rec~overy A~dministration
to combine all t~he button industries under one Code. This proved
to be imnpossible at the present time, but there is included in each
Code a provision for the establishment of a Greneral Button Mltanu-
facturers Coordinating Council, which at some future time will
enable a joint cooperative administration of thne various Codes.
The Industry, as defined in the Code, includes the manufacture of
metal work-elothirnrr sew-on buttons and hoof and/or horn work-
clothing sewcp-on 'P buttons. It also includes the manufacture of
fibre. buttons which may be used for the closing of garments or for
ornamentation or other purposes.
The number of concerns engaged in the Industry increased from
4 in 1928 to ? in 1933. The aggregate number of employees in 1928
was 223, a nd in 1933 was 258. TIlhe sales volume in 1928 was $670,000.
In 1933 it wpas $500,000. TIhis indicates that ailthough the sales
volume hras decreas~ed, the numaberr of employees has increased.
The Sulbmittingr Bureau represents approximately 85%r of the In-
dustry by number of concerns, and approximately 90%0 by volume
of business.
ni-seat& OF THE COD)E
Art icle I states the purposes of the Code.
Article II sets forth certainly definitions.
Article III pre~cscribes the maximum number of hours.
At~rticle IV sets the minimum wage for the Indfust ry.
Article V contains thre getneral labor provisions.
Article VI creates the Codle Authority and defines its powers and
Article VTII contains provisions for open price lists.


Article VIII defines certain trade practices which are, unfair and
whlich shall be eliminated.
Atlrticle IX: states that this Code shall not p~ermit~ monopolies.
ArticleXprovides for thie mlodilleation of this Code.
ArtcleXIstates the general policy of limitation on price

Article XII sets the erffective dante of the Code at the tenth day
after its approval.
The Deputy Admlinistrator in hiis final report to me on said Code
having found as herein set: forth and on the basis of all the proc~eed-
ings in this matter;
I find thlat:
(a;) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commnerc~e which tend to diminish. the amount thereof and will pro-
vide for thet general welfare by pr~omotingr the organization of ind~us-
try for the purpose of cooperative action among the trade grI~oups,
by inducing a~nd maintaining united action of labor and manage-
ment under adequate governmental sanctions and sup~ervision, by
eliminating unfair competitive practices, by pomot~ina the fullest
possible ultilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tem~-
pornrilyl required), by increasing the consumption of industrial and
agr~icultur~al products through increasing purchlasing power, by re-
dureing and relieving unemnploymentt by Imlproving standards of
labor, and by otheranse rehabilitation industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Ttle of said Arlct, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subs~ection (b) of Section 10 thlereof; andl that the applicant group
is an industrial group truly repr~e-tntative of the aforesaid industry;
and that said group :impo es~.- no inequitable restrictions on admission
to m~ember~shi~p the~retin.
(d) The Code is not designled to and w79ill not permit monopolies
or monopolistic p~ract~ices.
(e) The Code is not des~ignedl to and will not eliminate or oppress
smal eterri;esand will not operate to dlisc~rimninate against. th~em.
(f) TIhose engagedc~ in other steps of the ecclonomic process. s have not
been deprived of the right to be heard prior to approval of said
For these reasons the Code has been appIroved.
foHoo 8. JOH NSON,
Admlin ist rator.
Muacu~ 17, 1934.


To effectulate the policies of Title I of the National Industrial
Recovery Act, the following provPisions are established as a Code of
Fair Competition for the Fiibre and MP~etal Work Clothing Button
Manufacturing Industry, and shall be the standard of fair compe-
tition for such Industry and shall be binding upon every member

1. The term. Industry as used herein, includes the manufacture
of metal work-clothing sew-on buttons and hoof and/or horn
work-clothing; sew-on "' buttons. This termn shall also include the
manufacture of fibre buttons which, may be used for the closing of
garments or for ornamentation or other purposes, and such other
poducts as may from time to time be included under this Code
by the Administrator after such notice and hearing as he may
2. The termn employee as used herein includes any- person en-
gaged in, an~y phase of the Industr~y in any capacity, irrespective of
the nature orr method of payment of compensation, or his interest
otherwise inl said Industry.
3. The term "' employer "as used herein includes anyone for whose
benefit such an employee is engaged.
4. The term L"member of the Industry as used herein includes
any in~i~vidual, partnership, association, corporation, or other per-
son engs ged in the Industry either as an employer or on, his own
5. The terms President ", _A~ct "', and "'Administrator as used
herein shall mean respectively, the President of the U~nited States,
Title I of the National Industrial Recovery Act, and the A~dminis-
trator for Industrial Recovery.

1. Except as hereinafter provided, no employee shall be permitted
to wor~k in excess of forty (40) hours in any one (1) weekz, except
that for not more than sixteen (16) weeks in any one calendar year
overtime may be permitted when seasonal or peaki demand, or break-
down places an u~nusuall or temp~crar~y burdenl upon an employers, pro-
v~ided that such overt ime shall in no case exceed eight (8) hours
in any one (1) week, and, provided, further, that all such ovcer-
time shall be paid for at the rate of one and one half (~11/) times the
hourly rate of such employee.


2. The maaximum hours fixed in the foregoingr shall not apply to
emlployees engag red in emergency maintenance or repair work, pro-
vided isuch emlployees are paid one and one half (1%,) times the usual
hourly rate for all hours in excess of forty (40).
3. The provisions of this Alrticle shall not apply to employees
enga0edl in research wFTorkT or in an executive, managrlorsp-
visory capachty, and receiving more than thnirty-five deoril r ue-lars ($35.00)
per wceek; nor to outside salesmen.
4. NIo employee engoagedl as a firemlan or watchmnanr shall be per-
mitted to work more than fifty-six (56) hours in, any one (1) week
unless one a nd one half (11%) times the hourly rate Is paid for such
5. No employer shall knowinlgly engaage any employee for any
t~ime which. when totaled with that already performed with another
emlployver or employers in this Industry, exceeds the mlaximum
permitted herein1.
6. Any employer wvho does the work of an employee shall be
subject to the provisions of th3is Code as to hours of labor.
7. TPhe Code Authority~ may provide for overtime in. addition to
that hereinbefore prescribed, such additional overtime to be under
such conditions and upon such terms as the Administrator may

1. Exceept. as pr~ovided~ hereinafter, no male employee, shall be paid
less; than at the rate of sixteen dollars ($16.00) per week for a
forty (40) hour week and no female employee shall be paid less
thanl at the rate of thirteen dollars ($13.00) per week for a forty
(~40) hour wee~k.
2. The for~egoing~ section shall not be construed as a discrimination
by reasonl of sexn. Female employees performing substantially the
same wor~k as mallei emnployee~s shall receive the same rate of pay as
male employees.
3. Lear~ners mZay be paid at not leiss than the rate of eright.y per
cent (80%0) of the minimullm wage contained herein providedl that
the Ilnume r of suchn learners shall not exceed five per cent (55%) of
the total number of employees of the employer and that learners
shall not be employed as such1 for a period in excess of ten (10)
wfeeks, irrespective of whether they are employed by one or more
4. No ne<-onnlting. clerical, office, service or sales employee shalll be
paid at less than th-e rate of fifteen. dollars ($15.00) per week for a
forty (40) hour celek when employed in cities of more than 50ii~1.000
populatio-n; nor less than at the rate of fourteen dollars ($14.00)
per week for a forty (40) h~our w~eek in cities or places of 500,000
population or less.
5. This Atrticle establishes a mlinimlum rate of pay, which shall
apply regardless of whether an employees is compensated on a time
rate. piece w~ork, or other basis.
6.~ Equitalble ad~ju-tments in pay schedules of all employees shall
be made within thirty~ (30) days afterl the effective date of this Code
bly anly employer wh-~o has not hter~etofore mlade such adjustments


under the National Industrial RIecoverr ~Act -or the President's Re-
employment Agr~eeme~nt. W~itlinl siXty (60) days after the titreetive
date all such adjustments made under the Act or Agrleemecnt shall
be reported to the Code Aulthority and the ACdministrator. In no
ense shall rates be reduced.
7. A nprsonn whonse earning capacity is limitedl because o~f ag~e,
physical or mental handicapa, or other infirmity, may be emnploe
on light work at a wage below the minimum established by ti
Code if the employer obtains from thne State Afuthority, designated
by the U~nited Sqta~tes Department of Labor, a certificate authorizing
such person's employment at such wages and for such horc-lrs as
shall be stated in the certificate. Each employer shall file moc~nth~ly
with the Code Au~thority a list of all such persons employed by him,
showing th~e wnges paid to, and the maximum hours of work for
such employee.
AnnOCLE V- FENERAL Leaon Pnoviszows

1. No person under sixteen (16) years of age shall be emplloyedt
in the industry. No person under e~tighteen (18) years of age shall
be employed at operations or occupations which are hazardous in
nature or detrimental to health. The Code Authority shall submit
to the Admninistraltor within ninety (90) days of the eff~ct~ive. date
of this Code a list of such operations or occupations.
2. Employees shall have the right to organize and bargnin col-
lectively, through replresentatives of their own choosing and shall
be free from the interference, restraint, or coermion of employers of
labor or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
3. No employee and no one st-eeking empnlloy~ment shall be required
as a condition of employment to join any company union or to
refrain from joinmng, organizing, or assistmng a labor organization
of his own choosing.
4. Employers shall complyr with the maximum hours of labor,
minimum rates of pay, and other conditions of employment ap-
proved or prescribed by the Presid~ent.
5. No emiployer shall rerelussify employees or duties of occupations
performed or engage in any subterfuge so as to defeat the provisions
of th)e Act or of this Code.
6. No provision of this Code shall supersede az~y law within any
state which imposes more strmg~en~t requirements on employ'ers as
to age of employees, wages, hourls of w~orkl, or as to afe~ty), health,
or sanitary regulations, or insurance, or fire protection, or general
working conditions, than are implosedr byr this C~ode.,
7. No homeor~k shall be permitted by members of the Industry.l
8. All employers shall post complete copies of Articles III, IV,
and V of this Code in conspicuous places accessible to employees.
9. No provisions in this Article shall modify established prac-
tices for privileges as to vacation periods, leaves of absence, or tem-
porary absence from work heretofore guaranteed to office emnployTees.
Ssee paragraph 2 (2) of order approving this Code.




1. There shall forth-with be c~onstitutedl a Code Authority consist-
ing of :
(a) Five (5) re presentati ves of the industry or such other num-
ber as may be approved from time to time by the Admninistr~ator, to
be selected as hereinafter provided.
(b) Such additional mlembers, Iwithout vote, not to exceed three,
as the Administrator may appoint to repr~esent such groups or inter-
ests or such governmental agencies anld for such periods as he may
2. The representatives of the Indlustr~y shall be selected in the
following manner:
(at) Thie five (5) representatives of the Industry shall be selected
by the American. Fibre and M~etal W~lork Clothing Button Jlanu-
fact urers Bureau.
3. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authnority shall
(1) impose no inequitable restrictions on membership, and (2) sub-
mit to the Administrator true copies of its articles of association,
by-laws, regulations, and anyT amendments when made thereto, to-
gether with such other information as to membership, organization,
and acrtivities as the ~Administrator may deem nrecessaryT to e~ffectuate
the purposes of thie Atct.
4. In order that the Code Authority shall at all times be truly
representative of th~e industry and in other respects comply with the
provisions of the Act, the Administrator may prescribe such hearings
as he may deem. proper; and thereafter if he shall find that the
Code Alt'horrity is not truly repr~ese~ntaive or does not in other
respects comply with the provisions of the Ai~ct, may _require an
appropriate mod ~ci fien t ionl in. the method of selection of the Code
5. Mem~rbers of the intlrustryS shall be entitled to participate in and
share the benefits of the activities of the Code AuthorityT by assenting
to and complying with thne r~equliremelcnts of thiis Code and sustaining
their Ireasonab~le share of the expensest~i of its administration. Such
reasonable share of the expenses of the administration shall be
determined by thlk Code Author~ityT, subject to review byv the Adminis-
trator, on. the bas~is of volume of business and/or such other factors
as may be deemedr~i equitable.
6i. Nothing contained in this Coa~le shall constitute the memberrs
of the Code( Atuthority partncrs for any pu"rpocse. Nor shall any
m~lllembe of th~e Code Authority be liable in anly manner to anySone
for any act of any other member, officer, agent. or employee of the
Code Aulthor,~ity,, nor shall1 any member1~~1 of the Code Authlorit~y, exer-
cising reasonablel diligence in the conduct of hiis duties hereulnder, be
liable to anyone for anly action or olmis-ion to act ulnder this Colle,
except for his ow~n wilful misfusancellc or non-fenanllc.
7. If the Admllinistrator, shall dr'termlinle that any section of a
code authority or any agency thereo~cf may be unfair or unjust or


contrary to the public interest, the Admninistrator may requiress that
such action be suspended, to afford anl opportunity for investigation
of the merits of such action and further consideration by such code
authority or agency pending final action which shall not be effective
unless the Administrautor approves or unless he shall fail to dis-
approve after thirty days' notice~ to him of inltentionl to proceed -with
such action in its original or modified form.

8. The Code Aut'hority shanll havre the follow~ing~ p~ower~s and
duties :
(a) To insure the execution of the provisions of this Code and to
provide, subject to rules and regulations established by the Admin-
ist~rator, for t he compliancle of thre industry with the! provisions of
the Act: Provided, however, that this sihall not be c~onst~ue~d to
deprive dluly author~ize~d governlmental agencies of their power to
enforce the provisions of this Code or of thle Act.
(b) To adop~t by-laws and rules and regulations for its procedlure
and for th~e administration a~nd enforcement of thne Code.
(c) To obtain from mnembrs of the industry such. informnationl
and reports as are req~ir~ed for the administration of the Code, and
in adldit~ion t~o information required to be submitted to any Code
Authority all or any of the persons'subject to this Code shall fur-
nish such statistical information as the Admninistrator. mary deem
necessary for the pur~pose~s recited in Section 3 (a,) of the Act, to
suchl Feder~al al.nd StaLte agencies as the Admuini~strlato r may desig-
nate; nor shall anything in any code relieve anyT personal of existing
obligations to furnish reports to government agencies~. ~No indi-
vidual reports shall be disclosed to any other members of the indus-
try or any other part except to such gov\er~nmental agencies as may
be directed by the President.
(d) To use such trade assoc~iations and other agencies as it
deems proper for thze carrying out of any of its activities provided
for herein, PrIovided that nothing herein sh-all relieve the Code
Authority of its duties or responlsibilit.iesj under this Code and that
such trade asso~ciations and agencies shall at all times be subject to
and comply w~ith thle provisions hereo~f.
(e) To ma ke reccm menda tions~ to the AdmIi nistrat or for the co-
ordination of the admlriniistrantion of this Code wF\ith such. other codes,
if any, as may be related to thTe industry.
(fj To provide ways and means for financing nlthe peaton of apr
said C'ode Authlority and to determine an eqluitablemto fapr
tioning in the Ind~ustry the cost of administering this Code. Money
raised in anly mannner shall not exceed in amount such reasonable
(g) To cooperate with the Adm,1inlistra~ntor in regulatin the use of
any N.R.A. insigmaiz solely by those membnlers of the indstry who
have assented to, and are c~omlyling with, this Code.
(h) To r~ecommelnd to the! A'dministr~ator any action or measures
deemed advisable, includingc further fair trade practice p~rov~isions to
goern mt~llember of the industry in their relations with each other
or w~ith other industries, measures for industrial planning, and


stabilization of employment; and including modifications of this
C~ode which shall become effective: as part hereof upon approval by
the Admlinistrator after such notice and hearing as he may specify.
(i) To investigate competitive. articles imported in the United
States on such terms and under such conditions as t~o render ineffee-
tive or seriously endanger the maintenance of this Code and to act
as the agency for makmlg complaintts to the proper governmental
agEency on b~ehalf' of this Industry.
(j) To coordinate~ the admimistrat ion of this Code with such
other codes as may be related to the Industry, the Code Authority
may designate representatives for the purpose of meeting with likie
representat~ives designated by_ the Code Authorities of t~he related
Codes referred to above. Such representatives shall be duly author-
ized to constitute a committee, which committee shall, as soon as
practicable, submit to the Administrator such reports and recom-
mendlations with respect to:
1. The establishment and method of selection of a General BEutton
Mfanu facturers Coordinating Council.
2. The jurisdiction, as well, as the ad~ministrative powers and
authority, to be delegated to such Coordinating Council by the Code
AIuthorities represented.
Upon approval by~ the Administrator, after such hearings ncand
notice as he shall prescribe, such reconumnendations of the Cucl
selected in the manner above' provided for, the Code ~AuthoritiesI
represented shall be subject to the jurisdiction, rules, regulations,
and by-laws of the General Button BMnufacrturers Coordinating
Council in the form and manner approved by the Administrator, anry
express or implied delegation of power or duty in this Code to the
Code ~Authority notwithstanding.
(k) To cause to be formulated an accounting system and methods
of cost finding and/or estimating capable of use by all members of
the industry. After such systems and mlethodls have been formulate~d,
full details concerning them shall be made available to all members.
Thereafter all members shall det~ermine and/or estimate costs in
accordance with the principles of such :methods.
Every member of the industry, who mlanufactures and sells any
prodluc~t of the industry not refalblricted by himself so as to forml
part of another product, shall file with the secretary of the Code
Aulthority a net pr~icec list and/or a price list and discount sheet in-
dlividlually prepared by,\ him shlowing his current prices and/or
prices and dlisccunlts (i~nc-luding all discounts for wholesale or for
quantity frecighlt allow-ances and termsln of payment, and the secretary
shall immedriately sendl copies thereltof to all other members of this
in dust ry.
(a) Mecmbers of the industry ma:1y change any price list and/or
price list andl disco~unt sheet filled~ by him b~y filirw with the secre-
tary of the Code Auth~ority a revised price listowhich shall not
become effective until five days after thle filings date. Copies of all


new price lists filed wsithz the secretary with the efect~ive, date speci-
fle shll e mmeiatlysent to all members of this industry, who
thereupon may file, if te odsrrvsoso hi rc it
which may become effective on the same date the first revised price
list which was filed shall go inrto effect?"
(b) No member of the industry shall make anly sale or quolctation
of any product in ~th2is industry at a price or under terms and condi-
tions mor~e favorable to the. purchnser thereof than the price, terms
and conditions so filed by suchl member in accordcancee with the pro-
visions of this section and~ in effect at the time of such sale; nor shall
any members of the industry make any contract or sale of any product
of the industry at. a price or on terms or conditions more favorable
to the purchaser thereof thlan the price, terms and conditions es~tab-
lished as aforesaid and in effect at the time of the~ mal~kiner of such
contract or sale.

1. No member of the industry shall make or give to any purcl.haser
of any product any guarantee or protection in any form against de-
cline in the market price of such product after date of shipment.
2. No member of the industry shall insert in any invoice a false
record, wholly or in part, of thne transaction represented on the face
thereof, nor shall any such member withhold from any invoice any
record customarily inserted in an invoice for the purpose of avoid
ing any of the provisions of this Code.
3. No member of th~e industry shall ship goods on cons~ignmlent,
except under cirem~ustances to be defined by the Clode Authorityr,
subject to the approval1 of the Administrator, where p~e~culiarl circumY-
st~ances of the Industry require the practice.
4. No member of the Industry shall give, permit to be given, or
offer to gaive anything of value for the purpose of influencing or re-
wardcing the action of anyT employee, agent, or representative of
another in relation to the business of the employer of such employee,
the principal of such agent of the r~epresented body, without the
knowledge of such. employer, principal, or party. Conunetrc~ial
bribery$ provisions shall not be constr~ued to prohibit a gleneral dis-
trlibutlon of articles:; commonly used for advertising, except so far
as such ar~tic~les are actually used for commercial br~ibery as here1in-
above defined.
5. No mnemlber of the Industry shall brand or mark anly comnmodity
in a mannler which tends to mnisl~ead or deceive purchasers with respect
to the gr~ade, quality, qu~antity,, origin, size, a~ter~ial conltent, or
preparationn of such commodity.
6. No member of the Industry shall use advertising or other repre-
sentation which r~efer~s inaccurately in any maoter~ial particular to any
competitors or their products, prices, values, credit terms, policies,
OF SeffleeS.
7i. No member of the Industry shall publish or circ~ula7te unju~t or
unwarr1anted' threats of legal proceedings which tend to or have
rs e paragraph 2 (1) of order approving this Code.


the effect of harrassinga competitors, or intimidating any of their
8. (a) No member of the Industry shall sell any article at a price
belowr his individual cost. However, any member of the Industry
may meet the price of any competing member of the Industry for
products of anl equal grades and quality whose cost, under this pro-
vision. is lower, and may sell dropped lines or distress merchandise
below such cost provided the facts of such, sale are reported at once
to the Code Authority. Cost for the purpose of the provision shall
be determined~ in accordance with Section 8 (k) of Article VI of this
(b) W~hen the Code Authority determines that an emlergiency
exists in this Industry and that the cause thereof is dlestrulctive
price-cutting such. as to render ineffective or seriously endanger thle
maintenlnc~e of the provisions of this Code, it may cause t~o b~e deter-
miined the lowest reasonable cost of the products of this Indlustry,
suchl determination to be subject, to such notice and hearing as the
Administrator may require. The Admninistrator may approve, dis-
app~rove, or modify th~e dletermnination. Therenfter, during t.he
p'ero'd of the emergency, it shall be an unfair trade practice for
any mnember of the Industry to sell or offer to sell any products
of the Industry for which the lowest reasonable cost h~as beren deter-
mined at such. prices or upon such terms or conditions of sale that
the buyer will pay less therefore than the lowest reasonable cost of
such products. WChen. it appears that conditions hlave changed, the
Code Authority, upon its owrn initiative or upoln~the request of any
interested party, shall cause the determination to be reviewedl.
9. No member of the Industr~y shall offer for sale any product,
not coveredl by the provisions of this Code, at a price below cost,
in order to influence~ the sale of products of this Industr~y.

This Code shall not be construed or applied to promote orI permit
monopolies or monopolistic practices or to elimninute or oppress
small enterprises or to discriminate against them.

1. This Code and~ all thre provisions thereof are expressly madle
subject to the right of the President, in accordance w-ith~ the p~ro-
v-isionis of subsectio~n (b) of Sec~tionr 10 of the INational Indlustrial
Recove\-ry Act., from time to time to cancel or modlify any border,
approval, license, rule, or regullation issued under Title I of sait -
Act and specifically, bult. without limnit~ation, to thle right of thie
Pres.iident to ecen-cl or mod.,ify his approva,\l of thli; C~ode or' any
co(n di tions imp~osedr by him upon his ap~proval thereof.
2. Thiis Cod, ex.cepclt as to p~rovi.ionsi~ required by\ the. A~Ct. may1~ be
modlified on the bas~is of exper~ience or changerrs in circumstances, such
miodifications to be basedll upon application to the Admlinistrator an1d
such notice of hear71ing as he shall spc~cify, and to become effective on
approval by thIe Precsident..



Whereas t~he policy of the Act to increase real purchasing power
will be mnade impossible of consumption if prices of goods and serv-
ices increase as rapidly as wages, it is recognized that price increases
shall be dlelayved. But when made such increases should, so far as
possible, be limited to actual increases in the sellers costs.

This Code shall bc~ome effctive on thze tenth day after its
Approved Code No. 341.
Registry No. 161fA)4.