NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMyPETITION
EXPANDING AND SPECIALTY
PAPER PRODUCTS INDUSTRY
For sale by the Sui~e~intendent1 of Documrents, Warshington. D.C. Price 5 cente
Approved Code No. 369
Registry No. 409-0#S
AS APPROVED ON MARCH 26, 1934
WE DO OUR PART
UNIV OF i ili'
DOCUMEN ; LT
GOVERNMlENT PRINTING OFFICE
This publication is for sale by the Superintendent of Documents, Government
Printing Ofice, Washintgton, D.O., and by district o~flices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMRC
Atlanta, Ga.: 5i04 Post O~ffice Building.
B~irmingham, Ala.: 257 Federal Building.
Boston, Mass. : 1801 Customnhouse.
B3uffallo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North W'ells Street.
Cleveland, Ohio: Chamber of Commere.
Dallas, Tex;.: Chamber of Comamerce Building.
Detroit, 1Mich.: 801 First Nationzal Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, F'la.: Chamber of Commerce Building.
K~ansas City, Mo.: 1028 ~Baltimolre Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, K13y.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Mlinneapolis, Miinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Custombouse.
Newv York, N.Y.: 784 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust B3uildinlg.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portlanzd, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 800 Federal Oflice Building.
Approved Code No. 369
CODE OF FAIR COMPETITION
EXPAPNDING: AND SPI)EC][?IAL1TY PA-PER P~RODUJCTIS
As Approved on March 26i, 11934
APPROVING CODE OF FAIR COMEPETITIO)N FOR T`HE EXPANDING AND
SPECIAL PAPER PRonvers INDUSTRY
ASn application having been duly made pursuant to and in. full
compliance wcith. the provisions of Title I: of the National Industrial
RecoveryI Act, approved June 16, 1.3;3, for approval of a Code of
F~air Competition for the Exranding and Specialty Paper Products
Industry, and hearings hna~vmg beenl duly held thlereon and the
annexedl report on said Code, containing findingrs with respe-rct
thereto, having been made and direc~tedl to the Presiden~lt:
NOWV, THER3EFiORE, on behalf of the Presidetnt of the United
States, I, H~ugh S. Johnson, Administrator for Indlustrial Recovery,
pdu rsuant to authority vested in me _by Executive Orders of the PIresi-
dent, including Executive Order No. 6543-~A, dated December 30,
1933, and otherwise; do hereby incorporated, by recftlernce said annexed
report and do find that said Code complies in all rcsp~ects with the
pertinent pr'ovisiolns and will promote the policy and purposes of
said Title of said Act; and do hereby order that said. Code of Fair
Competition be and it is hereby approved; provided, however, that
the provisions of Alrticle VI, Sect ions 2 to 9 inclusive, insofar as they
pr~escr~ibe a waiting p~eriodl between the filing with. the Code Aluthority
(i.e. actual receipt by the Code A~uthlority) and the effec-t ive date olf
revised price lists or revisedl terms and conditions of sale be and they
are hlerebyS stayed pending my further order; provided, further, that
within ninety days I may direct that there be a further hearing on
such of the p~rovlslonsi of said Code as I may designate, and that any
order which I may make after such. hearing shall have the effect of a
condition on the approval of this Code.
HUfGH S. JOHNSON,
A dmnin istrator for Inducstrial Reco very.
Ap'proval1 reconuinend~ed :
GEO. L. BERRY,
11/arch :?I, 12934-.
The PRESIDENT, c a
The Wh'~ite Hiouse. I
SIn: This is a report of the hearing on the Codle of Fair Compe-
tition for th Expanding and Specialty Paper Product Industry,
colduc~ted in Washnington on January 26, 1934, in accordance wt
the provisions of Title I of the National Indust~rial Rtecovery Act.
HOURS AND WAGEs
This Code provides a 40 hour week for factory workers withl a
weekly tolerance of eight hours to be paid for as overtime, andc lim-
ite~d to 12 w~eekls per year. The usual exceptions are made in regard
to nonproductive employees. Office employees are! lim~itedl to an
average of 40 hours per wPceek over an eight week period.
The minimum. wage rate for hourly paid employees is 351t per hour
for all employees engaged in hand folding, gurmming and assemlbling
operations and the inspection connected with such operations andi 400
per hour for all other hourly paid employees. Office employees will
receive a minimum wage of $15.00 per week.
OPIEN PRICE PLA~N
An open price plan of selling is provided, and selling below cost,
except to meet competition, is prohibited.
P~rovisionr is made for furnishing th~e Administrator wpith such
statistical data as he may require.
ECONOMIC EFFECT OF THE CODE
The Indulstry employed in 1929 about 1,000 persons and in the first
qun r'ter of 1933 about 550 persons. Reports submitted by 13 re pre-
sentattive firms in the Industry show an increase in emnploymlent
between ~May and October 1933 of about 10%~, indicating thlt~ there
wpere in the latter month about 600 persons employed in the Industry.;
The total value of products of the Industry decresdfo 99t
1933 by about 80%. TIo decrease the schedule of working hours suff-
cienztly to attain the 1929 total of employees would increase the cost
of production to such an extent as to endanger the Industry.
The Deputy) ~Administrator in his final report to me on said Code
having found as herein set forth, and on the basis of all the pro-
ceedings in this matter
REPORT TO T~HE PRESIDENT
I find that:
(a.) Said Code is well designed to promote the policies and pur-
poses of Title I of the ~National Indlustrial Recovery Alct, including
r~emo\al of obstructions to the free flow of interstate and foreign
comlmerc~e which tend to diminish. the amount thereof and will pro-
vide for the general welfare by promoting thle organization of
industry' for the purpose of cooperative action amnlnw the trade
groups, by indlc~ing and manintininng united action of labor and
managrmenlt under adequate governmental sanlction and supervision,
by elimlinatingb unfair compllet~itive practices, by promotingilli the fullest
possible ultilizaltion of the present productive enlpacity of~ indulstr~ies,
b~y avoiding undue res~tr~ic~tion of production (exc~ept as mnay be
temporarily required), by increasing the consumption of industrial
and agricultural products through increasing purchasing power, by
reducing and relieving unemployment, by improving standards of
labor, and by otherwise reh~labilitating industry.
(b) Said Inrdustry normally employs not more than 50,000 eml-
p'loyetes 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 Title of said Act, including without limlitation
Subsection (a) of Section 3, Sub~sctio~n (a) of Section 7, and Subsec-
tion (b) of Section 10 thereof; and that the applicant Association is
an industrial ALssociation truly representatives of the aforesaid In-
dustry; and that said Association imposes no inequitable restrictions
on admission to membership therein.
(d) The Code is not designed to anrd will not permit monopolies
or monopolistic practices.
(e) TIhe Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons this Code has been approved.
HIUGH- S. JOHNSSONi,
ManonH 26, 1934.
CODE OF FAIR COMPETITION FORt THE EXPANDING)
AN~D SPECIALTY PAPER PRODUCTS INDUSTRY'
T'o effectuate the policies of Title. I of the Nationalf Industrial
Recoveryr Act, the following is hereby established~ as a Code of Fair
Competition for the above named Industryp and shall be binding on
evleryS memlber thereof.
AnncLE I---- DEFINITIONS
TChe following words are used in this Clode with the mea~ninga here-
in set forth:
Industry ": The mianufacturee of ha~nd-fold berllow~s expalndlin g
wallets, hand-fold file folders and pockets, hand-fold expandcinga files,
handl~-fold expanding mnailing wallets andt other hand-fold expanding
designls, principally from w~ood pulp, jute aIndl hemp rope fibre papers,
(mostly of the familiar reddcish-brown color), cloth and eannas cov-
ered papers, imitation leather, etc.
~Member '": A natural person, partnership, c~orpIoration, associa-
tion, trust, trusltee, trustee in bankruptcy, receiver, or other form of
enterprise, e~ngaged in such Industry.
"Act ": Title I of the National Industrial Recovery A~ct.
"Admninistrantor ": The Administraltor fo industrial Recovery
under Title I in the Act.
ARTICLE II---ORGANIZAPTIONi ANPD AommI`snunowTO
SEr~cTIN 1. Th1000 Shall fo~rthlwith be constituted a Code Authorit~y
consisting of five (5l) persons to be elected at an Industry meeting
canlcle for such purpose within thirty (30) days after the approval
of this Code.
SECTONJ 2. Immediately upon, applroval of this Code, the Chair-
mnan of the Code Comnmitteec shall notify all known members of thle
Industry of such meceting at least ten. (10) days prior thereto.
SECTIUN 3. In RiditiOH tO $116 membership as provided in Section 1.
of this Article, the Administrator may dresignate one or mnore persons
to serve on thne Code Auth~ority for such terms as he mayS fix. The
pel~rson or persons so designated shall have: no vote and shall serve
without compensation from the Industry.
SCECTION 4. Each trade association, directly or indirectly, partici-
pating in. the selection or activities of the Code Authority~ shnall(1
impose no m eqlu itable restrictions on mnembers~hip, and (2) submit
to the Adm~inistrator true copies of its articles of association, by-laws,
regulations and any amendments when made thereto, together with
suchn other information. as to membership, org~anization and activities
as the Adcministrator may deem necessary to effec~tuate thhe purposes
of the Act.
SECTION 5. In order that the Code Aluth~ority shllT at all times be
truly representative of the Industry and~l in other respects comply
with the provisions of the Act, the Administrator may prescribe
su~ch hearings as he mayT deem proper and there fter, if he shall findd
that the Code Authority is not truly repretse~ntative or does not in
other respects comply with the provisions of the Act, may reqcuir~e an
appropriate modification in the method of selection of the Code
SEC.TION 6C. The Code Authorityli is chalrge generally with the duty
of administering this Code. If the Admnlisltrato~r shall dletermine
that any action of the Code Autlhority, or any agency thereof, maly be
unfair or unjust or contraLry to the public interest, the Administrator
mlay requiure that such action be suspendedcc to afford an opportunity
for investigation of the merits of such action and further considera-
tion by the Code Authority or agency p~endling final action which
shall not be effective unless the Admimistrator approves or unless he
shall fail to disapprove after thirty (30) days' notice to him of in-
tention to proceed with such action in its original or modified. form.
SECTION 7. ?The expenses of administering this Code shall be borne
pro-rata, in accordance with a formula to be adopted byT the Code
Authority, by all members of the Industr~y who accept the benefit of
the services of the Code Authority or oth~erwise assent to this Code.
SECTIONP I 8. The Code Authnority shall have power to investigate
alleged violations of this Code and acts or courses of conluc~t by
any' member which a-re or appear to be contrary to the policy of thee
Act or wh'~iC~h tend or may tend~l to render ineffective this Code and
to report the same with recommendations to the Administrator.
SECTION 9. The Code Authority shall use such trade associations
anld other agencies as it deemns proper for t~he carrying out of any
of its activities provided for herein, provided that nothing her~ein
shall relieve the Code Authority of its duties or responsibilities
under this Code and that such trade associations or agencies shall
at all times be subject to and comply with the provisions hereof.
SECTION 10. The Code Authority may appoint a Trade 1Practice~
Committee which shall meet with the ~Trade Practice Committees
under such other Codes as may be related to this Industry for the
purpose of formulalting Fair Trade Practices to govern the relation-
ships between production and distribution. employers under this
Code and under such others to the end that such F'air Trade Prac-
tices mnay be proposed to the Administrator as amrendmelnts to this
Code and such other Codes.
SEenowN 11. Nothing contained in this Code shall constitute the
mlemblers of the Clode Authority partners for any purpose; nor shall
any member of the Code Authorit~y be liable in any manner to any
t Cdone, for aIny ct of any other member, officer, agent or employee of
theCod Athority; nrshall any member of the Code Authority,
exer~cising Iresonable diligence in the conduct of his duties here-
under, be liable to any one for any action or omission to act under
this Code, except for his own wilful misfeasance or non-feasance.
~ARrICLE III--HOURS OF LABOrR
SECTON Eploeesin he ndutryshall not be required or
permit ted to work hours in excessoftelmtprsibdnth
SCHEDULE OF WORKINGt HOURS
(a) W7atchmen: Fifty-sixr (56) hours in any one week, but not
more than six (6) days In any seven (7) dayT period; or fifty-six (56)
hours in an~y one wPeek, but not more than eighte (8) hours in any
(b) Chau~ffeurs, truckdrivers and their helpers: One hundred
eighty (180) hours inl any per~iodl of four (4) consecutive weeks,
provie, however, that time worked in exce~s of nine (9) hours in
any one day or forty-five (45 hours in any one w-eeki shall be paid
for as not less than time and one-half.
(c) Engineers, firemen, electricians, filter plant emnployees, elec-
tric and hydroelectric operators: One hundrled sixty-eight (168)
hours in anyJ period of four (4) consecutive weeks, providedl, how-
ever, that time worked in excess of nine (9) hours in any one day
or forty-five (45) hours in any one week shall be paid f~or as not
less than time and one-half.
(d) All other laborers, mechanical w~orklers or artisans employed
in anly plant, mill, or factory, or on work connected with the opera-
tion of such plant, mill or factory: ~Eight (8) hours in any one
daty and forty (40) hours in any one week, pro~videdl, how~ever, that
these maximum limits may be exceededl in any twetlve (12) weeks
of each enlendlcar y~ear, provided that all time wor~kedl inl excess of
eight (8) hours in any one day or forty (40) hours in any one week
shall be paid for as not less than time and one-hallf, and pr~oviedl,
further, that no employee shall be reqyuir~ed or permitted to workL in
excess of ten (10) hours in any one day or forty-e~ight (48S) hours
in. any onre week.
(e) Emiployees regularly engaged in a ma3nagerial, executive or
supervisory capacity and their per~sonal secretaries,~ rece~ivig thirtSy-
five ($f35.00) dollars or more per week, and outside salesmecn: No
l a itn nation.
(f) All other employees: Forty-eight (48) hours in any one w~eek
brut not to exceed three hundred twenty (320) hours~ in any period
of eight (8) consecutive weeks.
SECTION 2. NO limitation contained ini said schedule shlall applyr
to employees of any class when engaged in emergency repair or
emergency maiiunt ena~nce workr oc-casionedl by bradon or-- involving-------
protection of life or property, provided, however, t.hat all timle
wocr~kred in excess of the limiltations prescribed in said schedule shall
be paid for as not less than time anld one-hlalf.
SiECTION. 3. No employer shall permit any emplloyee to work for
any time which, when totaled wpi~th th~at already performed with an-
othier emnployer or employers in this Industry, exceeds the maximum
SETINQ f.CO(111;110 employee shall be :requil~red or perm~ittedl to
w\o~rk betweenl thle hours of 10: 00 P. MI. and 6: 00 Ai. 10.
SECTION 5. No employee of the c~lnoes included unlder Section
(b), (c), (d) and (f) of this Article shall be ;.'llrepilre or permitted
to work more than six (6) days in. anyv seven (7) consecutive dayrs.
SECTION i. TIIe mlnimuml rate of wagre of any employee, other than
office andi clerical emnploylees, employed rin any plant, mill or factory,
or on worki connecctedl with the oiper~ationl of any such plant, mnill or
factory, shall be as follows: r35$ per hour for all emp~lloyees eng~nged
in hand-folding, gulmmin g and assembling operations andC the insrpec-
tion connectedl with sulCh operations; 400 per hour for all other suc~h
SECTION 2. TI1e mnllim~um rate of wage of any office or clerical
employee schall be $F15.00 per week.
SECTION 3. ThIIS Article establishes a miiinimum rate of pay which
shall apply irrespec~tive of whether an employeee is actu-ally compen-
sat~ed on timle rate. piece w-ork or other basis.
SECTION 41. The wiage rates of all employees receiving more than
the mninimluml rates h~erein prescribed, which have niot been adjulstedr
since June 15, 1933, shall be reviewed and such adju-tmeents made
therein as are: equitable in the light of all the ci~c~umis tancess but in
no ease shall they be dlecreasedl. WF/ithin sixty (60) days after the
effective dante hlereof thle Code Authlority shall report to the Admin-
istrator the netioni takcen by all mem~llbers under~i this Secrtion.
SECTIO, N 5. Office boyse and- girls: undeFr eighlteen (18) years of age,
to the extent of no m Iore than 5%0 of the total numb~r of emlploye~es
described in Section 2 hereo~f. mayn be emlploy~ed at a wrnge of not less
than 80%"c of t.he minimnum prescribed by saind Sectionl, provided tht~t
at. least. one such office boy or girl miay be emiployed by each mlemlber1.
SECTION 6. Femrale employees per~formingb substanti ally the same
work as male emlployees shall receive the samne rate of pay as male
SECTION 7. A person whose earning capacity is limited because of
age, phys"ical or mental handicap,, or other infirmity, may be em-
ployled on light wor~k at a wage below the minimum, estab~lishedl by
this Code if the emnploy~er obtains from the state authority, desig-
nlated by~ the United States Dep~artmenlt of L~abor, a cer~tificaute au-
thorizing such person s employment at slc~h wages and for such
h~oursa as shllnl be stated in. the certificate. Such aulthor~it~y shall be
guided by the inst ruct ions of t~he United States Decpa trtment, of Labor
in issuinga certificates to such person~s. Each emnployer shall file
monlthly wit.h the Co~de Authorit~y a list of all such persons emnployed
by hinl, showingq the wage~s paid to, and the maxsimuml hours of
work for suIch employee.
ARTICLE V- -GE~E3RAL ZABOR., PROVITSIONS
SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry. No person under eighteen (18) years of
age shall be employed at operations or occupations which are haz-
ardous in nature or dangerous to health. The Code Authority shall
submit to the Administrator within sixty (60) days after the effee-
t~ive date of this Code a list of sulch operations or occupations. In
any State an employer shall be deemedl to have complied with this
provisions ~as to age if he shall have on ~file a certifiente or permit duly
signed~ by the authority in such~ State empowered to issue emuploy-
ment or aget certificates or permits, ShowTing that the employee is of
the required age.
SECTON 2. Emlploy'tees shall have the right to olrganize. and bargain
collectively through I~lreprsentat~ives of their own chloosing, and shall
be free from the interference, restraint, or coercion. of emlployers of
labor, or their agents, in the designation of such repr~esntnatives or
in self-organization or in other concerlted aIctivitie~s for the purpose
of collective bargaining or other mnutual aid or protection. N~o eml-
ployee and no one seeking employment shall be required as a con-
dition of employment to join anly company union. or to refrain fromt
jommig, orgamizmg, or assistmng a labor organization of his own
choosing. Employers shall comply with the maximumn hours of
labor, minimum rates of pay, and other conditions of emnployment,
approved or prescribed by the 1President.
SECTION 3. No provision ml this Code shall supersede any State or
Federlc1n law which imposes on employers more stringent requlire-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general workm~g conlditiolns, or insurance or fire
protection, than are imposed by this Code.
SECTON 4r. Nt~o employer shall reclassify employees or duties or
occupations performed or engage in any other subterfuge for the
purpose of defeatingr the purposes or provisions of the Act or of this
SECTION 5. All employers shall post copies of Articles III, IV', and
V of this Code in conspicuous places necessible to employees.
SECTION 6. Every employer shall make reasonable prov\isiions for
the saEfetyi and health of his employees at. the place and dluringr the
hours of their employment. Standards for safety and health shall
be submitted by the Code Authority to the Administrator within six
(6) months after the effective date of this Code.
SECTION 7. The Code Authority shall make a study of conditions
in the Ilndulstr~y to determine the feasibility of the adoption of a
shorter working week and shall, within three (3) months after the
effective date of this Code, make a report of its findings to the Ad-
ministrator. The Codelt Authorityr shall also submit to the Adlmin-
istr~ator within six (6i) months after the effective date of this Codec,
a plan for the stabilization and regularization of emplloyme~lnt.
SECnTION 8. The mnuinrfacture or partial manufactulre of anly pr'od-
uct of the Industry in. homes shall be prohibited.
ARl~TICLE VI l-Acc~OUN TINGC-SELLING
SECTION 1. Thne Code ACuthority shall cause to be formnulated an
account in IIcsystem and methods of cost finding and/or estimating
capale~ll of use by all members of the Indtustr~y. After sulch systeml
and mecthlods have been formlalllted` and ap~provedc~ by the Adm~ninis-
trator, full details concerning them shall be made avanilalble to all
1 See paragraph 2 of order approving this Code.
me~mbers. Thereafter all members shall determine and/'or estimate
costs in accordance with the principles of such methods.
SECTION 2. The Code Authority may from time to timle determine
that an open price plan of selling such product or products of thle
Industry as it shall specify shall be put into effect on such date as
it shall fix. Notice of such determination shall be announced to
all known members of the Inmdustry who manufacture such products
not less than thirty (30) dlays prior to the date so fixed.
SECTION 3. At least ten (10) days prior to such date, every such
member shall file with t~he Code Authoritiy a schedule of prices and
terms of sale for all such products or, in the alternative, shall be
dleemedct to hav~e filed a schedule conforming in respect to price and
terms of sale with the schedule at any time~c onl file w~hichl states the
lowest price and the most favorable terms.
SECTION 41. All suIch schedules shall be in suchn form as the Codle
Authority shall prescribe and shall contain all information neces-
sary to permit any~ interested person to determine the exact not price
per unit after all discounts or other deductions have been made,
whetherI 1pertainingr to a, single order, a comnnimi~tmn for future de-
livery, or a cont~ract.. All such original sc~hedlules shall become ef-
fectiv~e on the dlate fixed by thre Code Aulthor~ity as provided in
Section 2 hereof.
SECTION 5. A revised schedule or schedulles, or a new schedule or
schedules, or a notice of withd-rawal~ of a schedule P~revious~cly filed,
mayr be filed by a member w~iith the Code Aluthlority at any time, pr~o-
vided, however, that any member who withdraws a schedule without
substituting a new schedule therefore shall be dtelleme to have filed a
scheduIP le cnformi~ng~l in respect. to price and terms of sale wrcith the
schedule at any timle thereafter on file which states the lowest price
andi the mlost. favor~able terms. An schedule or notice filed hnere-
undler, shall become e~ffctive five (5Y days after the date of filing,v
provided however, that an increased price may becoml~e effective at
such earlier date as the member filing the same shall fix.
SECTION 0). The Codle Authority shall promptly supply all memb-
berss of the Industry who manufacture any particular' product with
copies of all schedules, revised schedules, and notices of withdrawal,
which pertain to such product. Imm~edlately upon receipt of infor-
mnation relative to the wFithdrawanl of a price orany product, any
member may file notice of wlithdr~awal of his own price for th~e samne
product effective as of thle samne date as the notice of withdlrawfal of
such other member. Immlnediatelyr on receipt of information that. a
schedule then on file has been rev-ised, or that a new schedule has
been Sled, any member may file a revised schedule conforming as to
price and sterns to the schedule of such other member, anld effec-
tive on the same date, or he may notify the Code AIuthority that he
adopts as his owrn the schedule of such other member. In t~he latter
event, he shall be deemed to have filed a revised schedule! conforming
to the revised schedule of such, other member.
SECTION 7. NO Such schedule of prices and terms of sale filed by
any member, or in effect any time, s~hall be such as to permit the sale
of any product at less than thte cost. thereof to such member deter-
mined in thle manner pro~vid~ed in Section 11 hereof, provided, how-
ever, that any member may by notice to the Code. Authority, adopt
as his own a low~er price filed by another desiiglnated member. Such
adoption shall become au~tomlatically void uponr thle writhdrawal or
r~evision upward of the price adop~ted:.
SECTION 8. NO member, who shall have filed a price or adopted as
his owrn a price filed by another member for any product of the In-
dlustry, shall sell such product for less than such price or upon terms
or conditions more favorable than talted in such price schedule. No
member, who shall have failed to file a price for anyr product for
which the open price plan is in effect, shall sell such product at a
lower price or on. terms more favorable tha~n the lowest price anid most
favorable terms stated in any price schedule for such product thenl
SECTION 9. The Code Authority shall furnish at cost to any inter-
ested person or persons requesting then, copies of any. price schedules
which have been filed with it. Such price sc.hedules shall be madnte
available to such pers-on or persons~ at the same timle thley ar~e sen~t to
SECTION 10. No member shall sell any product of the Indurstry~ for
which no open price plan is in effect at less than. the cos~t thereof to
such member determined as provided in Section 11 hereof, except to
meet the price of a competitor whose price does not violate such~
SECTION ~11 Cost, for the purposes of this ~Artic~le, shall be dleter-
mined pursuant to the method of accounting and costing prescribed.
as provided in Section 1 hereof as soon as such metthod is alop~t~ed
and approved, and theretofore pursuant to the meth-odl emloyed~ by
such member subject to such preliminary rules as the Code Alut~or~ity
shall from time to timle prescribe with the a approval of the
SCECTION 12. Every members shall upon the request of t.he Code
Authority furnish a designated agency of the Code Authlority, in
respect to closed transactions only, with complete inlformation in
regard to any quotation, order, contract or sale of anly product of thle
Industry, including information as to specifications, quantities, price,
conditions of storage, transportation or delivery, terms of billing,
cash or trade discounts allowed, and other pertinent, facts reclating t.o
such qulotat ion, order, contract or sale.
SECTION li. Nothling~r herein contained shall be conlstr~ued to pre-
vent the disposition of distress merchandise requitre to be sold to
liquidate a defunct or insolvent business or of discontinued lines,
damaged goods or seconds, in such manner, at sulch pr1ice and on
such terms anld conditions as the member shall publish w~ith the
Code Authority prior to the sale thereof.
An~LTicia VII REPORTrS AND STATISTICS
SECTION~ 1. Each member shall prepare atnd file withl an imlpartial
agent, designated by the Code Authority, at such timne and in such
mlanner as -it may prescribe, any such statistics, data and information
relating to plant capacity, volume of production, vorlumle of sales in
units and dollars, orders recived, unfilled orders, stocks on hand,
inlvenltory- both raw and finished, number of employees, wage rates,
employee earmngs, hour of wspork, and other matters, as the Code
Authority or the Administrator mtay fr~om timne to time require.
Any or all information so furnishedl by any member shall be subject
to checking for the. purpose of verification by an examiination of thre
books, accounts, and records of such member by any disinterested
accountant. or accouit~ants or other qualified person or persons
designated by the Code Authorit~y.
SECTION 2. Except. as otherw~ise provided in the .Act, or in this
Code, all1 statistics, dlata, and information :filed~ or recquir~ed in accord-
ance with the provisions of this Code shall be confidential and the
statistics, data, and informaitioni of one memnber shall not be revealed
t~o another member. No such data or information shall be published
except in combination wsith other similar data and in such a manner
as to avoid thle disclosure of confidential information. The Code
Authority shall arrange in such manner as it may determine for the
current publication of Inldustry statistics to mnembrs.
SECTION 3. The Code Authority shall make such r~epor~ts to the
Administrator as he miay from timle to time require.
SECTION -1. In1 border to assist; in making effective the reports fr~om
theP Indulst~ry andr in eliminati;ng unfair competition, the Code ALu-
thority shall make studies with a view to the es~tabllishmlent of classi-
fications, dimensional standards, quality speciications and informa-
tive labelings for products of the Indlustr~y.
SECTION 5. In1 addition to information required to be submitted
to the Code AuthorityS there shall be furnished to Govetrnlme nt Agen-
cies such statistical information as the Ad~iministrator may deem
necessary for the purposes recited in Section 3 (a) of the Act.
Nothing contained in this Code shall relieve any mlemnber of any
exist~ingi obligations to furnish reports to any Governmlent Ag~ency.
SECTION 1. No provision of this Code shall be so applied as to
permit. monopolies or monopolistic prlactices~, or to eliminate, oppress,
or discriminate against small enterprises.
SECTION 1. The Code ALuthority may, from time to time, pr~esetlt
to the Administrator recommlendlations based on conditions in the
Industry wThich w~ill tend to effectua~te the operations of this Code anrd
the policy of the Act., and in particular along thne following lines:
(a) For the establishment of additional rules of fair trade practice
for the Industr~y and for the codification of its trade customs and the
(b) For the establishment of plans to equalize production with
demand, so that the interests of the Industry and the public may be
(c) For dealing with any other inequality that may arise to end'an-
ger the stability of t~he Industryr an~d of production and employment.
(d) For an increase or decrease in the number of Indc-ustry memn-
bers of the Code Alut~hority andl/or for a. change in the method of
choosing such members.
SECTION 2. For the purpose of assistinga t.he Code Authorities of
the Paper Mlanuifacturing and/or Converting Industries in the ad-
justmrnt of all labor disputes and labor complaints arising within
such Industries, the Code Authority shall consider the advisability
of creatingr a Joint Inldustrial Rtelations Board for such Industries
and shall report its recomm rend~at ions to the Administrator.
SECTIO)N 3. Recommendations made pursuant to Sections 1 and 2
hereof when approved by the Administrator, after such notice and
hearing as he shall prescribe, shall have the same force and effect as
other provisions of this Code.
ARTcIC X--TRADE PRACTICES
SECTIONK 1. The following are hereby constituted Trade Practices
for the Industry and failure to comply ~with the provisions thereof
shall be a violation of this Code.
(a) Members of the Industry shall not practice deception in regard
to that which is sold or its selling price by -false or misleading descrip-
tion, statement, record, or undisclosed consideration.
(b) Members shall refrain from dumLpingl deferred delivery, ex
tensioln of stated credit, and secret rebates.
(c) M~embers shall not wcilfully injure by falsely defaming a com-
petitor's goods, credit, or ability to perform his contracts.
(,~d)h Memberss shall not wilfully induce or attempt to induce t~he
(e) No member shall give, permit to be griven, or directly offer to
give, anything of value for the purpose of influencin g or rewarding
reaction of any employee, agent, or repr~esntative of another in
relation to the business of the employer of suchl employee, the prin-
cipal of such age~nt or the represented party, without the k~nowledge
of such employer, principal, or party. Tfhe foregoing provrision shall
not be co~nstrue~d 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 herein defined.
(f) No member of thne Industry shall ship goods on consignment
except under circumstances to be defined by thle Code Aurthority
where peculiar circumstances of the Industry require the practice.
(g) In furtherance of fair competition and to prevent discrimina-
tion in, prices, manufacturers agree that in, sales either to distributors
or co~nsumlers no cash. discount shall be gaiven in excess of tw~o
percent (2%r). Such cash discount will be strictly limited to pay-
ments not to exceed fifteenlth of month following date of shipmnent.
ARTICLE XI~I-GENERAL PRO1TSIONSf
SCECTION I. If Rny melllber is also a member of another industry,
the provisions of this Code shall apply to and affect only that part
of his bursiness~ wChich is included in this Industry.
SEcTIrONu 2. Any wyork or process incidental to and carried on by a
member at his plant, as a part of the manufacture of any' product.
of the IndustryS, shall be regarded as a part of this Industry.
SECTION 3. SuICh of the provisions of this Code as are not required
to be included therein by the Act, may, with the approval of the
Administrator, be modified and eliminated as changes in circum-
stance or experience may indicate.
SECTION 4. This Code and all the provisions thereof are expressly
made subject to t~he right of the Presidlent, in accordance with thne
provisions of Section 10 (b) of th~e Act, from~ timoe to time to cancel
or modify any order, approval, license, rule or regulation, issued
under Title I of said A~ct, and specifically,, but w\ithocut limiitation, to
t~he right. of thle Presidlent to canel or modify his approval of this
Code or any conditions imposedl by him upon his approval thereof.
SECTIO)N 5. This1 Code shall become effective on the second M/londay
after the date up~on which it shall be approved by the President of
the United States.
Appjrovedl Code No. 369.
Registry No. 409--88.
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