NATIONAL RECOVERY ADMINIPIISTRA~T'ION
CODE OF FAIR COMPETITION
METAL HOSPITAL FURIVITUREj
For sale by the Superintendent of Document, ~Washinkton, D. C. - Price 5 cent
Approved Code No. 527
Registry NIo. 1121---01
AS APPROVED ON OCTOBER 23, 1934
WE Do OUR PART
GOVERNMENT PRINTING OFFICES
This publication is for sale by the Superintendent of Documents, Government
Pr~inting Ulttice,t Washingrton, D). C., and by district offices of the Bureau of
Foreign. and Domestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMMERCE
Atlantal, Ga.:. 504 Post Office Building.
Birmlinghanm, Ala.: 257 F'ederal ]Building.
Boston, Maltss. : 1801 Clustomliouse.
Butffallo, N. Y.: Cham~ber of Commlerce Building.
Charleston, S. C.: Chamber of Commerce Building.
Chlicngrr, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Buildling.
Detroit, Ml~ich.: 801 First National Bank Building.
H~ouston, Tex.: Chamberr of Commerce Building.
Indlianapolis, Indl.: Chamber of Commerce Building.
Jacksonville, F'la.: Chamber of Commerce Building.
Ka:nsas City, Mo.: 1028 Baltimore Avenue.
Los Ange~les, Calif.: 1163 South Broadway.
Louisville. Ky.: 408 Federal Buildling.
M~emphis, Tenn.: 229 F'ederal Building.
JlinneabollliS, Mlinn.: 213 FedrI1al Building.
New Orleans, La.: Roo~m 225-A, Custombiouse.
New York, N. Y.: 73:4 Customhouse.
Norfoc~lk, Va~.: 406 En:lt Plume Street.
Philadlelphia, Pa.: -1'_2' Commerciall Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oregr.: 215 New Post Offce Building.
St. Louis, Mio.: 506 Olive Street.
San F'ralc~isco, Calif.: 310 Customhouse.
Seattle, wCash.: 809 Federal Office Building.
Approved Code No. 527
CODE: OF FAIR COMPETITION
METAL; HOSPITAL FURN~ITUR~E MANUFACTURING
As Approved on October 23, 1934
APRrovrwa CODE OF IFAIR COMPETITION FOR THE METAL IIOSPITA~l
FURNITURE MANUFACTUINGI~~N INDUSTRY
An application having been duly made pursuant to and in full'
compliance with the provisions of Title I of the N~ational Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Mletal Hospital Furniture Mlilanufacturi-ng
Industry, and hearing having been duly held thereon; and thne an-
nexed report on. said Code, containing findings with respect thereto,
ha-ving been made and directed to the President:
NOW, THEREFiORE, on behalf of the President of the United
States, the NIational Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the Presidentl including
Executive Order No. 6859, and otherwise; does hereby corporate
by reference said annexed report and does find that said Code com-
plies in all respects with the pertinent provisions and will promote
t~he policy and purposes of said Title of said Act; and does hereby
order that said Code of Fair Competition. be and it is hereby
NATIONAL INDUSTRIAL RECOVERY BOARD,
By G. A. LYNcH, Adm~inisrtrntiv'e Of)?ce~r.
Approval recomml-ended :
Acting Division, Admninistrator.
WASHINTGTON, D. C.,
October 3, 1i934.
REPORT T`O T[H[E PRESIDENT
lThe W~hite Howse.
Sin: This is a report on the Code of Fair Competition for the
Metal ~Hospital Furniture Mlanufacturi ngb Industry, a hearing having
been condu~ctedt thereon in Washington, D. C., August 4, 1934, in
accordance with the provisions of TPitle I of the Naltional Industrial
PROVISIONS AS TO H-OURS AND WPiAGE~S
The mn ximu~m hours are established in this Code as follows: All
employees, except employees engaged in an exeentive, manager1~linI or
supervisors capacity who receive thirty-five dollars ($35.00) per week
or more and outside salesmen or watchmen--forty (40) hours in
any one wee~k, or eight (8) hours in any twentyiS-fou r (24) hour
period and six (6) days in any seven (7) day period; watchimen--
fifty-six (56) hours per week, and one anyr~ of rest in every seven
(7) day period. The maximum hour provisions shall not apply to
tlhe following: Employees on emergency'1(~3 maintenance~ or emrge~'bcncy
r~epa;'ir wPorkr involving breakdlowns or protection of life~ or property,
but in any such special case at least one and one-half (11%) times
their regular rate shall be paid. for hours worked in exe-.~ of eight
(8) hours in any tw~entyT-four~ (-1) hour period or forty (40) hours
in any one week; employees for six (6) weeks~ in anly twen~rty-isix
(26) week~ls period during which overtime shall not exceed eight t
(8) hours in anyr one week nor shall any employee be permitted to
work in excess of nine (9) hours in any twPenty-four (24) hour
period; provided that at least one and one-ha;lf (11%) times the
regular rate shall be paid for hours worked in ec-sl:1- of eight
(8) hours in anly twenmty-fotr: (24) hou~r periodl of forty (40) hours
in anly re~v!en day period. No empltoyer1 shall permit any empl~loy9ee
to work for any time which when totaled with that already per-
for~medI for another employer, or employers, exceeds the max;~imnum
Trhe mlinimnum wages ar~e established in this Code as follows: All1
employees, except clerical or office employees--forty centslt (40 ) per
hour; clerical atnd office emnployees--fifteen dollars ($15.00) per wEeek.
These minimum rates of pay shall apply il~~~llrre In-ttiv of whether an
employee is actually compcnsatedl onl a time rate, pieceworki, or other
bei~ and female employees performing substantially the same work;
as male etmpl<=.p~~~es shanll receive the same rate of pay as male em-
ploee. employees whosen ear~nmg capacity is limited be'.'llcons of age
or phy-bal1 or mental hlandicap or other infir~mity may be employed
on light; wor~k at a ~agre below the minimnumn established byu this Code
if such emplloyer shatll obtain from the State authority designated d by
the United States Dcpartment~r l of La3bor a :.ert.ifkat~c authoriziill w his
employment at such wages and for such hours as shall be stated in
The employment of any person under sixteen (16i) years of age
is prohibited, with a further provision that no person under eighteen
(18) years of age may be employed in anyS occupation hazardous in
nature or dangerous to health.
This Industry consists of companies which manufacture for sale,
and sale by thle manufacturer, of metal hospital furniture commonly
used in hospitals or similar institutions and/or by physicians or
There are approximately thirty-six manufacturers in th~e Industry,
which number has been constant since 1928. Tlihe estimated number
of employees reached a peak in 1930 with 2,370, and a low in 1933
with 1,940, a decrease of about 18 percent. T'he estimated aggregate
invested capital decreased from a peak of $6,990,000 in 1930 to a low
of $6,638,000 in 1933, a decrease of about 5.1 percent. The highest
volume of sales was recorded in 1928 with $8,124,000, which volumee
dropped to $5,411,000 in 1933, a decrease of about 33 percent.
TIhe estimated production capacity has decreased by about 16
percent during the past five years.
The Arlssistant Deputy Administrator in his final report on said
Code having found as herein set forth and on the basis of all the
proceedings in this matter;
It is found that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial 1Recovery ~Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the trade groups,
by including and maintaining united action of labor and management
under adequate governmental sanction and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
requiredl, by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and rehlevmng unemployment, by improving standards of labor, and
by otherwise rehabilitating 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 mn all respects with the perti-
nent provisions of said T'itle of said Act, including without limita-
tion Sublsection (s) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associa-
tion is an industrial association' truly rep~resentative of the aforesaid
Industry; and that said association ulnposes no inequitable restric-
tions on admission to mlemlbe~sh~ip therein.
(d) Th~le Clode is not desigrnedl to and will not permit monopolies
or monopolistic practices.
(e) T'he Code is not descigne~d to and will not elimlina~te or oppress
small entterps~ i-es and will not operate to discriminate against them.
(f) Those e~cnsrged in. other stePps of the economic process have not
been deprtived of the righ t to be heardi prior to approval of said Cod~e.
For thi'~i ...re-onterfrth aioa nusra Rcv
Board has approved this Code.,, ,,,,alRC0.
For the Naitional Industrial Recover~y Boazrd:
G. A~. ]LY~on,
Ad 1/inin.s~trat~ive Officer.
Oc~tros 23, 1934.
CODE OF FAIR COMPETITION FO]R THE METAL; H~OS-
PITAL 'U]RNITURIE: MANUFACTURING INDUSTRY
To effect the policies of Title I of the National Industrial Recovery
Act, this Code is established as a Code of Fair Competition for the
Metal H-ospital Furniture Manufacturing Industry, and upon ap-
proval its provisions shall be the standards of fair competition for
such Industry and shall be binding upon every member thereof.
ARTICLE: 1- DEFINITIONS
SECTION 1[. The term Metal Hospital Furniture Manufacturing
Industry or Industry as used herein includes the manufacture
for sale and sale by the manufacturer of metal hospital furniture
. commonly used in hospitals or similar institutions and/or by
physicians or surgeons.
SECTION 2. The term~ Member of the Industry as used herein
includes, but without limitation, any individual, partnership! asso-
ciation, corporation, or other form of enterprise engaged mn the
Industry, either as an employer or on his or its ow~n behalf.
SECTION 3. The term employee as used herein includes any and
all persons engaged in the Industry, however compensated, except a
member of the Industryv.
SECTION 4. The term employer as used herein includes anyone
by wchom such employee is compensated or employed.
SECTION 5. The term "L association as used herein shall mean the
Association of Manufacturers of Metal H~ospital Furniture, or its
SECTION 6. The terms President ", "Act ", and "Administrator "
as used herein mean respectively: the President of the United States,
Title I of the Nationlal Industrial Recovery Act, and the Adminis-
trator for Industrial Recovery.
SECTION 7. The term "L Confidential Agent or "'Agent of the
Code Authority, as used herein, is defined to mean the person as
designtate~d by thre Code Authority Said Agent, in order to qualify
as such, shall be entirely free frm any interest in or connection
with any company engaged in the manufacture or sale of the products
of the Inldustr~y.
SEGCTION 8. T3Che term Code Atuthority as used herein means the
agency which is to administer this Code as hereinafter provided.
AR~TCLdE II'I- OURS
SECTION 1. No employee shall be permitted to work ini excess of
forty (40) hours in any one week, or eight (8) hours in any twenty-
four (24) hour period, except as herein otherwise expressly provided.
No employee shall be permitted to work more than, six (6) days in
an evnECTION 2. The maimum hours fixed in Section 1 shall not apply
to employees engaged in an executive, mannagerial or supervisory
capacity, wpho receive $35.00 per week or more, and outside salesmen.
SECTION 3. The maximum hours fixed in Section 1 shall not apply
to emnployees or emergency maintenance or emnergency repair work
involving breakdowns or protection of life or property, but in any
such special case at least one andf one-half (14/) times their regular
rate shall be paid for hours worked in excess of eight (8) hours in
any twenty-four (24) hour period or forty (40) hours in any one
SECTION 4. The maximlum hours fixedl in Sectio~n 1 shall not apply
to employrees for six (6) weeks in any tw~enty-six (26) weeks periodl
during which time overtime shall not exceed eight (8) hours in any
one week nor shall any emnployeee be permitted to work: in excess o
nilne (9) hours in any twenty-four (24) hour period except that in
any ~case of emergency any employee may work longer than the
maximumn hours of labor prescribed in this A~rticle; provided that at
least one and one-half (1%l/) times the regrular rate shall be paid for
hours worked in, excess of eightt (8) hours in any t wenty-four (24)
hour period or forty (40) hours in any seven day period.
SCctioN 5. No employer shall permit any employee to work for
any time which whnen, totaled with that already performed for an-
other employer, or employers, exceeds the maximum permitted herein.
SECTION 6. Watchmen shall be permitted to work not in excess of
fifty-six (56) hours per week, provided, that they shall be given one
day of rest in every seven (7) day period.
SECTIONZI 7. Employers who personally perform manual wvork: or
who are engaged in mechanical operations in connection wFlith thre
manufacture of products of the Industry shall not exceed the pre-
scribed maximum hours.
SECTION 1., No employee shall be paid in any pay period less thlan
at the rate of 40 cents per hour, except as herein, othecrwise provided.
.SECTIOS 2. NTo clerical or office employee shall be paid in any pay
period less than at the rate of $15.00 per week.
SIIC'Io, 3. This Article establishes minimum rates of pay which
shall applyT, irrespecctive of whether an. employees is actually comipen-
sated~ on a time rate, piercework,, or other bas~is.
Su~cTrow 4. Female employees performing substantially the same
workli as malel( employees shall rccive. the same rate of pay as male
Sect(romC, 5. A person(~l wFhose earning e7pacit;y is limited beenuse. of
age or physicall or mental handicap or other infirmity may be
eplnPyedct on light work at a walge below the minimum estab~lishe~d
by this Codelt if such, employer shall obtain from t~he State Au-
th~ority dae ignated by the United State~s Department of L~abor a
certificate authorizing his employment at suchn wnge~s and for such
hours as shall be stated in the certificate. Each emplolTcyer shall file
monthly withl the Code Authority a list of all such persons em-
played by him, showing the wages paid to, and the maximum hours
of work for, such employee.
SEC~TION 6j. Equitable adjustment of comlpellnsatin of all em-
ployees receiving more than the minimum rates of pay~ shall be made
ball employers who have not heretofore mnade such adjus~tmlcnts,
and all employers shall within thirty days after approval of this
Code, report in full to the Code Authority concerning such adjust-
mentss whether made prior to or subsequent to such appro~val, pro-
vided, however, thnat in no event shall hourly rates of pay be
reduced, irrespective of whether compensation is actually paid on
an. hourly, weekly, or other basis, nor shall any wages be at less
than the mlinimum- rates herein provided.
SECTION 17. This article establishes rates of payr which shall be
exempt from any charge, fine and/or deduction by the employer,
except such charges or deductions required by State or Federal
SECTION 8. The employer shall make payments of all wages due
in lawful currency obynegotiacble checks therefore, payable on
demand. These wages shall be exempt fromt any payments for
pensions, insurance or sick benefits otherl th~an those voluntarily
paid by the wage earners, or required by State or Federal Law.
WT7ages shall be paid at least by the end of every two week period,
and salaries shall be paid at least at the end of every month. No
employer shall withhold wages. The employer or his agents shall
accept no rebates directly or indirectly on such wages, nor give
anything of value or extend favors to any person for the purpose
of influencing rates of wages or the working conditions of his
ARTICLE V--CENERAL I;ABOR: PROVISIONS
SECTION 1. (a) Employees shall have the right to organized and
bargain collectivelyI through representatives of their owvn choosing
and shall be free from the interference, recstranint, or coercion
employers of labor, or their agents, in the d~esbignation of such rep-
resentaltives or in self organization or in other concerted nectiv-ities
for the purpose of co~ll~c~tiv-e bargaining or other mutual aid or
(b) NTo emlployJee and no one seeking employment shall be re-
qjuired as a condition of employment to join any company union
or to reframn from joinmng, organizing, or assisting a labor organi-
zation, of his own choosing, and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, andi other condlitions of employment approved~
or prescribe by, the President.
SETIono 2. N persons under sjixteen (16) years of age shall be
employed in. the Industry. No persons under eighteen (18) years of
age~ shall be employed at operations or occupations ~which are hazard-
o'us in nature or dlangferouxs to health. The Code Authority shall
submit to the Adiniriitrantorl for approval before January 1, 1935, a
list of such operations or occupations. In any State an employer
shall be dleemedi to have complied with this provision as to age if he
shall have on file a valid certificate or permit duly signed by the
AuthorityT ini such State emp~oweredt to issue employment or age
certificates or permits, showing that the employee is of the required
~SECTIONT 3. Emp110.loyes shall not re-chansify' employees, or duties of
occupations performed, or engage in any othcr sulbterfug~e so as to
defeat the purposes of the Act or this Code.
SECTION 4. Within ten (10) days after the effective date of th~is
Code, each employer shall post, and keep: posted, in. conspicuous
places accessible to employees full copIies of this Code and any amendl-
ments;ti or modifications whlich may later be approved in secordance
w-ith Exrecutive Orders and/or regulations thereof. Every member
of the Industry shall comply with all1 rules and regulaltionls relative
to the posting of provisions of Codes of Fair Competition which
ma!,y from time to time be prescribed by the _Administrator.
SEenowIO 5. Every employer shall maknle p~~croision for ther safety
and health. of his employees at the place and during the hours of
their employment. Standards for safety and health shall be sub-
miittedc by the Code Aluthority to the Administrator within three (3)
months after the effective date of the Code.
SE(.now 6. No employee shall be dlicrissed or dlemotedl by reason of
making a complaint or giving evidenlcec with respect to an alleged
v~io~ltionl of thnis Code.
tSEC.nIc j 7. No provision in the Code shall supersede any State or
Federal law which imposes on employers more stringent requirements
as to agfbre of employees, wee.~c, hours of wocrk, or as to safety, health,
sanitary or general working conditions, or insurance, or fie protec-
tion, than are imposed by this Code.
AnuIcra VI-Ona~c.\ aI.maxc,, Pow\Ens,, Axo DUTIES OF TH~E CODE
SECTION 1. (a) D~uring the period not to exscteed thirty (30) days
followings the effective date of this Code, the Code Comm~lift~te of the
Association of MaInunIfa tur Iers of Me~:tal H-ospital Fur In itu~re shall con-
stitute a temporary Code Authority until the Code Authority is
elected. Thel-e shall be con ~titu~tted within the thirty (30) day per~iodl
a Code Aulthlority consisting of six (6) members, to be e~lectied byr the
members o~f the Indlustry at a meetings called by the temporary Code
Authority. Notice of such meeting shlall be sent by reg~isteredl mail
to all known members of the Indus~ltry3, whose rnunelt s shall have been
ascertained aft-er d1iile.nt search by thte Association of la n ufa ct uIrers
of Metal Hrospita l Frit1itur~e, -uch1 notice to be mailed to all known
members of the InciustryS at lead~ fifteen (15) days prior to the date
on wh'lichl such'1 meetingr is to be held1~.
(b) T'he Inllanbers~ of the Code Authority shall be, el~c~tred in the
1. Only those members of the Industry who agre.e to pay their
reasonable share of the expenses of the administration of this Code
shall be entitled to vote in the electiion of the Code Authority.
2. Six (6) members of the I~ndustry shall be elected m~emlbers of the
Code Authority by a masjor~ity vote of all known m1-embier~s of the
Industry, pre-enilt, in person or by proxy, each member to have one
voc-te; said election to be subject to the approval of the Admtninistra-
tor. A~t least one member of the Code AQuthority shall be a nlon-
member of the Association of M~anulfacturers of Mletal Hospital Fur-
niture, provided, however1, that such a non-Association .Ilmember of
the Indlustry5 is avanilable~~ and willing to serve.
3. The mlembers- so elected to the Code Authority shall serve for
a period of one (1) year fromt the date of electio~n, and thereafter
members of the Code Aiuthority shall be elected by members of the
Indu3tryT, as provided in. Paragraph 2 of Sub~slc~tionl (b) of this
Section, at a meetings canlledl byr the Code Authority not less than
thirty (30) daylS- prior to the texp~ilrationl date of thelt current term of
office of the Code Authority.
4. A vacanncy in the membersh~.~lip) of the Codte Authority shall be
filled by a majority7 vote of the remaining members of the Codle Au-
thority;, provided, hnowsever, that the Tacncy:lc 3 to be filled shall be
.cublject to the provision that at li ast one membe~lr~l of the Code Au-
th~or~it shall be a nominemb~111er of thne Asso-ciatioc n of Man!lufacturers
of Metal H~ospital Fiurniture, if such a memberl~'l is available and
willinr to serve.
(c) In addition thej;reto, the Adl1mrii-~Ini trato in his discretion may
appoint not more than three members of the Code Author~ityV, with-
out votes, for Iluch] terms as he may pesc~ribe.~
SEc~TION 2. Each trade or industrial association dIr~c(tlyT or in-
directly pa rticipating in the selection or activities of the Code Au-
thority shall (1) impose no inequitable restrictions on membership:
and (2) submit to the Ahdministrator true copies of its articles of
ass~ciationl,l by-lawT7S? regu~'latlaw., and any amenthu~i ients w\liln made
ther~et-,, tobretherc l with -!1chl other information as to membership,
organization, and activities as the Administ~rator mazy dteemn neces-
su7ry'~. to efctCtuate the? purpusesl~ of the! A1ct.
FE~rIms 3. In ordcer that the Colle Authority shall at all times
be truly representatives! of the Industry and in other res~IPects comply
wCith the provi ions! of the Act, th~e Admiini-trator~ may prescribe
such hearingrs as he may decem proper; and' thereafter, if he shall
find. that thle Coel~ Aurthority is not truly representative or does not
in other re.-pcceti; comply withl the provisions of the Act, may require
anl appropriate modtification of th~e Code Au~lthc-rity.
Sw~~rroru 4. N~othiing conta~inedi in this Code shall constl~itulte the
membiler~s of thle Corte Author~iity partners for any pil1''e. Nt~or
shall any nwmbnler of the Code .\ltholrity be liable in any manne11r1 to
anyone!:' for any act of any other membelrtr, offier, agen~!t. or em~plovee
of the Collle Authority. N~or Ihall any member of thIe Code Au-
thor~ity, exer elc-inL reasonab~le7) diligenllrCe in the tendiruct of his duties
hereundcer, be liable to anyonlll for anly action or omnission to act
under this C!!le, except for his ownJ wfilful ma!;lfi':ssne- or nlon-
SECTrms 5. If the AshnltliniCtrto s~fllhall at any time d~for~min e that
alny action of th~e Codie A~uthority or any!! agency thereof may be
unfair, unjllt or cocntr~ary to thec- publllic interest, the A.?rlnlini;trator
mafy reprel~lc that sulch action be .so~-pentldr d to af-fordl an orpporturnity
for inv~e-tierntio n of the merciits of snch arctioni and further considera-
tionl by~ such CodeI Aiutho!rity orlr(nc\ nume lr p lingr final action which
shall not be effe~ctive unless the adm;;ini -trator app:~lroves or unless'5 he
shalll fail to ili-;lpprove~ after thirty (30) (1:ys' notice to hmli of in-
tention to pr~octelc wpiith, such aIctionr inl i-ts or~igrinni~ or mnod~fille form.
POWERS AND DUTIES
SE.CTION 6. SubljeCt to such rules and regulations as may be issued
by the Administrator, the Code Authority shall have the followring
powers and duties, in addition to those authorized by other provi-
sions of this Code.
(a) To insure the exrecution of the provisions of this Code and to
pro-vide for the compliance of the Industry with- the provisionls of
(b) To adopt bylaws and rules and regulations for its procedure.
(c) To obtain fromll mlemblfers of the Industry such information and
reports as are required for the A~dministration of the Code. I~n addi-
tion to information required to be submitted to the Code Authoritly,
membrllers of the industry subject to this Code shall furnish such
statistical information as the Administrator may deem necessarily for
the purposes recited in Section 3 (a) of the A~ct to such Fed-eral and
State agencies as he mlay cdsiglnate ; p~rovidedc~ that nothing in this
Code shall relieve any memberi~l of the Industry of any exristing~ obliga-
tions to furnish reports to any Government agrency. No individual
report shall be dlisc~losdc~ to any other member of the Industry or
any other party except to such other Governmnental agenewsiti as m~ay
be directed by the Atdministrator.
(d) To use such trade a~sociationls and other agencies as it leemns
proper for the! carrying out of anyr of its activities provided~r for
hlerein. provided~l that nothing herein shall re~lie~ve the! Code Authorit~y
of its duties or responsibilities under this Code and that such trade'l
assrc~iationsl and agencies hall11 at all times be subject to and comply
with theg provisions hereof.
(e) To reco13mmend to the Administrator any action or mea~Surest~
demnedi~i ad~visable, including further fair tradle practice prov\isionls to
goveII1Irn memb~ers of the Indusitr~y in their relations with each o-thecr or
with other industries; melacuresi for inllustrial planning, and stabili-
zation of emlploymen~lt; and including modifications of this Code
which shall becomer effective as part helreof upon app-,~ rovl\ n by the
Admini-t:trator after such notice alnd hearing as he mlay specify.
(f) To appoint a Trade Practice Commnittee w-hich shall meet
with thle trade prelctie counnlilittees.- appoCinted' under such other codtes
as may be related. to the Industry for thle purpose of formnuliinting fair
trade p~ractices to govern the relationclil-h Ips ht weenI employers under
this Code and urnder suchl other coders to thle end that such fair trade
practices may be proposed to thle Admiinistratorr as iilcninendlents to
this Code and such other Codes.
(g) To pr;ovidte appr~opr~iate facilities for arb~itration, and subject
to the approval of th~e Adml~inistraator, to pre-cr1ibe rules of
procedulre :and rules to ellCect complianllce with awalrds and3 de-
(h) To makle r~ecrommnendXation to thet Adm~inistrator for thle co-
ordrina~tion,~ of thec administration. of this Code with such other endes,t~
if any, as na~y be! re~la~tll to or affect mnemblers of the Industry.
,CeF. IIIw 7. 1. It beingr found necessary in. order to support thne
admllinistrat~ion of th~is Clode andX to maEinta~in the standa~rllds of fair
competition establlilhed hler~eundecr and to effectuate thle policy of the
Act, the Code Authority is authlorized::
(a) To incur such reasonable obligations as are necessary andh
proper for the foregoing purposes, and to meet such oblligations out
of funds which, may be raised as hereinafter pr1ovided and which
shall be held in trust for thne purposes of the Code;
(b) To submit to the Admninistrator for his approval, subject to
such notice and opportunity to be heard as hne mafy deem fnercressaryi
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be c~ontributedl by members of the
(c) Aifter such budget and basis of contribution have been ap-
proved by the Adm~inistrantor, to determine and obtain equitable con-
tribut~ion, as above set forth, by all members of the Industry, and
to that end, if necessary, to institute legal proceedings thnerefor in
its own name.
2. Each mlemlber of the Indrustry shall pay his or its equritable con-
. tributionl to the expenses of the maintenance of the Code Authority,
determined as hereinabove provided, and subject to rules and regu-
lations pertaining thereto issued by the Administrator. Only mem-
bers of the Inldustry complying with the Code and contributing to
the exp~en~ss of its administration as hereinabove provided (unless
duly exempted from making such contributions), shall be entitled
to pa"rticipnt~e in the selection of members of the Code A~tuthority
or to receive the benefits of anly of its voluntary activities or to
make use of any emnblema or insignia of the National Recovery
Adlm inist ra tion.
3. The Code Authority shall neither incur nor pay any obligation
su~bstantially in exscess of the amount thereof as estimated in its ap-
prov~ed budget, and shall in no event exceed the total amount con-
tained in the approved budget, except upon approval of the Admin-
istrator; and no subseqcue~nt budget shall contain any deficiency item
for ex pe nd it u res in excess of prior budget estimates except those
which the Atldministrator shall have so approved.
Anatorm VII--OPEN PRICE FILING
SEenowO 1. Each member of the Industry shall file with a confi-
dentiall and disinterested agent of the Code Authority or, if none,
then with such an agernt designated by the Administrator, identified
lists of all of his prices, discounts, rebates, allowances, and all other
terms or conditions of sale, hereinafter in, this Article referred to as
price sterns ", which lists shall completely and accurately conform
to and represent the individual pricing practices of said member.
Such. lists shall contain the price terms for all such standard products
of the Indlustry as are sold or offered for sale by said member and for
such nonstandard~ products of said member as shall be dlesignated by
the Code A~uth~ority. Said price terms shall in the first instance be
filed within ten (10) days after the date of approval of this provision.
Price terms and revised price terms shall become effective imnmedli-
ately upon receipt thereof by said agent. Immediately upon receipt
t~her~eof, said agent shall by telegrnp'h or other equally prompt means
notify said mlemb~r of the time of such receipt. Such lists and revi-
sio~ns, together with the effective time thereof, shall upon receipt be
immediately and simultaneously distributed to all members of the
Industryy and to all of their customers who have applied therefore and
have offered to defray the cost actually incurred by the Code Author-
ity in the p~reparattion and distribution thereof and be available for
inspection by any of their customers at the office of such agent. Said
lists or revisions or any part thereof shall not be made available to
any person until released to all members of the Indus~tryT and their
customers, as aforesaid; provided, that prices filed in the first in-
stance shall not be released until the exzpiration of the aforesaid ten
(10) days period after the approval of this code. T~he code authority
shall maintain a permanent file of all price terms filed as herein
provided, and shall not destroy any part of such records except upon
written consent of the ~A~dministrator. Upon request the code author-
ity shall furnish to the Administrator or any duly designated agent
of the Administrator copies of any such lists or revisions of price
SECTION 2. When any member of the Industry has filed any revi-
sion, such member shall not file a higher price within forty-eight
SECTION 3. N~o member of the Industry shall sell or offer to sell any
products of the Industry, for which price terms have been filed pur-
suant to the provisions of this article, except in accordance with such
SECTION 4. No member of the Industry shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms, nor cause or attempt to cause anly member of the industry
to change his price terms by thne use of intimidation, coercion, oran
other influence inconsistent with the maintenance of the freed
open market which it is the purpose of this Article to create.
ARTcICE Y111--COSTrS AND PRICE CUTTNG
SECTION 1. Thle standards of fair competition for the Industry
with reference to pricing practices are declared to be, as follows:
(a) W~ilfully destructive price cutting is an unfair method of
competition and is forbidden. Anly member of the Industry or of
any other Indunstry or the customers of either may at any time com-
plain to the Code Authority that any filed price constitutes unfair
competition as destructive price cutting, imnperilinlg small enterprise~
or tending toward monopoly or the impairment of code wages and
workiing* conditions. Thle Code Authority shall within 5 days afford
ain opportunity to the member filing the price to answer such com-
plaint and shall within 14 days mnake a ruling or adjustmeni t thereon.
If such. rulings is not concurred in by either party to the complaint
all papers shall be referred to thne Rtesearch and Plaanning Division of
N. R. A., which shall render a report and rec~olll~nunention thereon to
(b) When no declared eme~rgency exists as to anS: given product
there is to be no fixed minimum basis for prices. It Is Intended that
sound cost-estimating methods should be used and that consideration
should be given. to costs in the ~determination of pricing po~licies.
(c) When an emergency exists as to any givenn product, sale below
the ~stated minimum price of such product In violation of Sec~tion 2
hereof is forbidden.
SECTION 2. (a) If the Administrator, after investigation, shall at
any time find both (1) that an emergency has arisenl within the
Industry adversely affecting small enterprises or wages or labor con1-
dtit~ions, or tending toward monopoly or other acute conditions, which
tendl to defeat the purposes of the Act, and (2) that the determination.
of the stated minimum price for a specified product within the in-
dustry for a limited period is necessary to mitigate the conditions
constituting .-uch em~ergaenc~y and to e-ffectuate the purposes of the
Act, the (codle APulthority may cause an impartial agernc~y to investi-
gate costs and to retcomclmend_ to thle Administrator a determination of
thne started minimzum price of the product affected by thie emrg~llency,
and thereupon thie Adminzistrator may proceed to determine such
stated minimum price.
(b) `Whlen the Administrator shall have determinedrle such stated
minimum price for a specifiedl product for a tat~te period, which
price shall be reasonably calculated to mitigate the conditions of
such emergency and to effectuate the purposes of the National In-
dustr~ialRecovery Act, he shall publish such price. Therea~cfter, dur-
ing such stately period, no member of thle Indus~try shall sell such
specified products at a net realized~ price below said stated minimum
price, and any such sale shall be deemed destructive price cutting.
Fromn time to time the Code Auth~ority may recommend review or
reconsideration or thne Administrator may cause any determinations
hlereunder to be reviewed or reconsidered and appropriate action
SCECTION 3. CJO~t ~Finding.--The Code ALuthorityshl causbe to bse
formulater d methods of cost finding and accountigcpbeo s
by all members of the Industry, and shall submit such methods to
the Administrator for review. If approved by the Administrator,
full information concerning such methods shall be made available
to all members of the Industryr. Thhereafter, each member of the
Industry shall utilize such methods to thne extent found practicable.
Nothing heremci contained shall be construed to permit the Code
Authority, anry agent thereof, or any member of the Industry to sug-
gest uniform additions, percentages or differentials or other uniform
1tems of cost which are designed to bring about arbitrary uniformity
of costs or pr:ces.
ARTICLE: 11TRADE: PRACTICE RULES
RUrz 1. No member of the Industry shall publish advertising
(whletherl printed, radio, display, or of any other nature) which is
misleading or inaccurate in any material particular, nor shall any
member in any wayr misrepresent any_ goods (including but without
limitation its use, trade mark, grade, quality, quantity, origin, size,
sbllstance.~, charader(1C nature, finish, material content or preparation)
or credit terms, values, policies, services, or the nature or form. of
the bus~l~ine' conducl.te d.
RULE 2. NO member of the Industry sha~ll knclwingrly withhold
from or insert in any quotation or inrvoee any sctatemenc~lt, that makes
it inaccurate in any maiter~ial particular.
RULE 3. NO mlembejt~ r of the Industry shall brand or mark or pack
any goods in any manner which is intended to or does deceive~ or
mislead purchasers with respect to the brand, grade, quality, quantity,
origin, size, substance, character, nature, finish, material, content, or
preparation of such goods.
RULE 4. No member of the Industry shall defamne a competitor by
falsely imputing to him dishonorable conduct, inability to perform
contracts, questionable credit standing, or by other false representa-
tion, or by falsely disparaging the grade or quality of his goods.
RULE 5. No mlember of the Industry shall publish or circulate un-
justified or unwarranted threats of legal proceedings which tend to
or have the effect of harassing competitors or intimidating their
RUL~E 6. No member of the Industry shall secretly offer or make
any payment or allowance of a rebate, refund, commlission, credit, un-
earned discount, or excess allowance, wThether in the form of money
or otherwise,~r nor shall a member of the Industry secretly offer or
extend to any cus~ltomner any special service or privilege not extendled
to all c~ustonwrsl of the same class for the purpose of influencing
RULE 7. NO Blember of the Industry shall give, permit to be g~iven
or ffe togie aythngof value for the purpose of influencing or
or fewrdn th le cnthion o any employee, agent, or representative of
another in relation to the business of the employer of such employee,
the principal of such ag6enlt or the represented party. This provision
shall not be construed to prohibit free and general distribution of
articles commonly used for advertising except so far as such. articles
are actually used for commercial bribery as hereinabove defined.
RULE 8. No member of the Industry shall wilfully induce or
at~templt to induce the breach of existing contracts between comnpeti-
tors and their cus~tomers.i by~ any false or deceptive means, or interfere
with or obstruct the performance of any suchn contractual duties or
services by any such means, with the purpose and effect of hampering,
injurmng, or embarrassing competitors in their business.
RULE 9. No member of the Industry~ shall require that the purchase
or lease of any goods be a prerequisite to the purchase or lease of
any other goods.
RrLE. 10. No member of th~e Indu.stryS shall use or sulbstitulte or
sell any article or mal~terlial other than that sp-ecifiedl by the pur-
chalser of any product without clearly d~efiningt such substitutions.
RULE 11. NO member of the Industry shall imitate or mlanufacturee
any design, style, workr, or brand of anym beofteIdtr
which shall have been registered with the Asseroiation Snuch ro
cedure of reg~istrantion shall be prepared by the Codel Authorityjf3, and
shall be subject to approval by the Administrator.
Rnout 12. No I1wn'11berI of the Industry shall fail to put thne manu(1!-
fahcturer's Iname or trade marki, or other markz of identification, on all
products manufactured within the I[ndustryr.
ARTICLE X-EXPORT TRADE
Seenrowu 1. No provision of this Code relating to prices or terms
of selling, shipping or marketing, shall apply~ to export tradle or
sales or shipmenr~lts for export trade. '" Export Trade "' shall be as
defined in the Export Trade Act adopted April 10, 1918.
SECTION 1. This Code and all the provisions thereof are express
made subject to the right of the PEresident, in accordance ~withth
provisions of subsection b) of Section 10 of the Act, fromt time
to time to cancel or modi~fy any order, approval, license, rule, or
regulation issued under Title I of said Act.
~SECTION 2. Such of the provisions of this Code as are not required
to be included herein by the Act may, wFith thle approval Of the
Administrator, be modified or eliminated in such manner as mnay
be indientedl by the needs of thne public, by changes in circumstances,
or by experience. All the provisions of this Code, unless so modified
or eliminated, shall remain in. effect until June 16, 193,5.
ARTICLE XII--MONOPOLIES, ETC.
No provision of this Code shall be so applied as to permit mo-
nopolies or monopolistic practices, or to eliminate, oppress, or dis-
criminate against small enterprises.
ARICLE XIIII--EFFECTIV\ E DATE
This Code sh-all become effective on the tetnthi day after its
Approved Code No. 527.
Registry No. 1121---01.
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