For sale by the Superintendent of Documents, Washington, D.O. Price 5 cents
Registry No. 409--04
Approved Code No. 412
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AND BLANK BOOK INDUSTRY
AS APPROVED ON MIAY 1, 1934
WE DO QUR PART
DOCLu a PT,
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFIrC)ES OF THE DEPARTM~aENT OF COMMBIERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, ~Ala.: 257 Federal Building.
Bolston, Mass.: 18(01 Onstomhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Oharleston, S.C.: Chamber of Commnerce Building.
Chicago, Ill.: Suite 1706i, 201 North Wells Street.
Cleveland, Ohio: C'hamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mic~ih.: 801 Firt National Bank Building.
Houston, Texn.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Comrmerce Building.
K~ansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South BroadwayS.
Louisville, Ky.: 4018 Federal Building.
Memphis, Te~nn.: 229 Federal Building.
M~inrlneapolis, MSinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
NewF York, N.Y.: 734 Customnhouse.
Norfolkr, V~a.: 406 East Plume Street.
Philadelphia, Pa.: 4322 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commzerce 1Building.
Portland, Oreg.: 215 New Post Offtice Building.
St. Louis, Mo.: 506 Olive Street.
San Franoisco,, Callif.: 310 Custombouse.
Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 412
COD)E OPF ]FAIR COMPETITION
LOOSE LEAF ANJD BILANiK BOOK INDUSTRY
As Approved on ~May 1, 1934
APRrovIrwa CODE OFi EFAIR. COMPETITION FOR TH LOOSE LEAF AND
BLANK; BOOK INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
F'air Competition for the Loose Leaf anld Blank Book lIndustry~, and
hearings having been duly held thereon and the annexed report on
said Code, containing findings with respect thereto, having been
m~ade and directed to the President:
NOW, THI-EREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me byEeuieOdroftePei
den, icluingExeutie OderNo.6543-~A, dated December 30
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find that said Code complies in all respects with the~
pertinent provisions 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 APrticle IV, Sections 2 to 9 inclusive, of the Supple-
mental Code for the Trade Manufacturers Division, insofar as they:
prescribe a wait ing period between the filing with the Code Author-
ity (i.e. actual receipt by the Code Authority) and the effective date
of revised price lists or revised terms and conditions of sale be and
they are hereby stayed pending my further order; provided further,
that within ninety days I may direct that there be a further hearing
on such of the provisions of said Code as I may designate, and thzat
any order which I may make after such hearing shall have the effect
of a condition on. the approval o'f the Code.
HUGHf S. JoENSOIn,
Admini7~srator for Industrial Recovery.
Divrisio~z3n Amin ist~rator.
MCay 1, 1934.
REPORT` TO TH PRESIDENT
The 7iV71te House.
SIR: This is a report of the hearing on the Code of Fair Comp~eti-
tion for the Loose Leaf and Blank~ Book Industry, conducted in
Washingtonl on Jan~uary 26, 1934, in accordance with the provisions
of Title I of thne National Industrial Recovery Act.
HOURS AN'D WIAGES
This Code provides a 40 hour week for factory workers with a
wee~kly tolerance of eight hours to be paid for as overtime, and lim-
Ited to 12 weeks per year. The usulal exceptions are made in regard
to non-productive employees. Office employees are limited to an
average of 40 hours per week over an eight week period.
OPEN PRICE PLAN
An open, price plan of selling is provided, and selling below cost,
except to me~et competition, is prohibited.
Provision, is made for furnishings the Administrator with such sta-
tistical data as he may require.
ECONOMIC ~EFFECT OF THE CODE
Figures submitted by plants in t~he Indust~ry show an increase in
employment of 39'Zl between 1\lay and October, 1933. This probably
reflects both anl increased business act~ivityr and the effect of the
President's Reemlployment Agreem~ent, with about 15 or 20%o of the
additional employment due to t~he. latter. The hour schedule of ithe
Code should maintain this increase.
F~romn figures submitted by identical plants, payrolls show an in-
crease between May and October, 1933 of about 40Cc. As a result
of the Code this should be maintained.
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-
ceedinlgs in this matter
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the N~ational Industrial Recovery A4ct, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amnoun~t thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by induc~ingr a~nd maintai~ning united action of labor and management
under adequate governmental sanction and supelrvision1, by elim-
inating unfair competitive practices, by promoting the fullest pos-
ible u-icliation o te presercint productive capacity of industries,
by aoidng ndu retritio ofprodluctionl (except as m~ay be
temporarily required), by increasing the consumption of industrial
and agricultural products through increasing purchasing power, b
reducing and relieving unemployment, by improving standards o
labor, anrd by otherwise rehabilitating industry.
(b) Said ~ndustry normally employs not more than 50,000 em-
ployrees and is not classified by m~e 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 limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, anld
Subsection1 (b) of Section 1_0 thereof; and that the applicant ALsso-
ciation is an industrial Association truly representative of the afore-
said Industryr; and that said Association imposes no inequitable
restrictions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) T'he Code is not designed to and will not eliminated or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not beenl deprived of the right to be heard prior to approval of
For these reasons this Code has been approved.
HoncE S. JoHNSON,
IMAY f, 1934.
CODE OFE F'AIR COMPETITION FOjR THE LOOSE LEAF
ANP;D BLANK: BOOK INDUSTRY'
To e~ffectuate t~he policies of Title I of the National Indust~rial Re-
covery Act, the following is hereby established as a Code of Fair
Competition for the above named Industry and shall be binding on
every member thereof.
The following words are used in this Code wclith the meaning herein
Industry "--T'he manufacture of loosej leaf devices, forms and
supplies, and bound blank books, adopted chiefly to the use of indus-
trral, commercial and institutional users.
Member "-A- natural person, partnership, corporation, associa-
tion, trust, trustee, trustee in bankruptcy, receiver or other form of
enterprise, engaged in such Industry.,
"" Supplemental Codes "-Supplemaental Codes for the Trade
MSanufacturers Division and the Direct MC~Ianufacturers Division.
"LAct "-Title I of the National Industrial Riecovery Act.
"LAdmninistrator "--The Administrator for Industrial Recovery
under Title I ini the Act.
ARTICLE II-ORGANIZATION AND) ADMINISTRATION
SECTION 1. There shall be constituted forthwith a Basic Code
ACuthority of the Loose Le~af and Blank: Bookz Industry which shall
consist of the members of thne Code Authorities of thre Suppl~emet
Codes, together with such person or persons as the Administrator
may appoint. The person or persons appointed by the Admliinis-
trator shall have no vote and shall serve wFcithout compensation from
SECTION 2. The Basic Code Authority shall be charged generally
with the duty of administering this Basic Code. If the Adminis-
trator shall determine that any action of the Basic Code Authority,
or any agency thereof, may be unfair or unJust or contrary to the
public interest, the Admimlstrator may require that such action be
suspendedl to afford an opportunity for investigation of the merits of
such. action and further consideration by the Basic Code A~uthority
or agency pending final action which shall not be effective unless th~e
Administrator approves or unless he shall fail to disapprove after
thirty days' notice to him~ of intention to proceed with such action
in its orligilnal or mod-,tified~ form.
SECTIONPU 3. The expenses of administering this Basic Code shall
be bornel pro rats;7 in accordance with a formula to be adoptedr by
the Basic Code Author~ity subject to apyproval of the Adlministrator,
by all1 members of t~he Industry who accept t~he benefit of the service;
of the Basic Clode APuthority or otherwise assent to this Basic Code.
SECTION 4. The BEasic Code Authority may use such trade associ-
ations and other agencies as it deems proper for the carrying out of
any of the activities provided for herein, provided that nothing
herein shall relieve the Basic Code Authority of its duties or respon-
sibilities under this Basic Code, and that such trade associations or
agencies shall at all times be subject to and comply with the pro-
SECTION 5. Notfhingr contained in this Basic Code shall constitute
the members of the Basic Code Authority partners for any purpose.
Nor shall any member of the Basic Code Authority be liable in any
manner to anyone for any act of a~ny other' metmber, officer, agent,
or employee of the Basic Code ALIuthority. Nior shall anly member
of the Basic Code Authority, exercising reasonable diligence in the
conduct of his duties hereunder, be liable to anyone for any action
or omission t.o act under this Basic Code, except for his own willful
mlisfeasalnce or nonfeasance.
SECTrION 6. The Basic Code AIuthority may appoint a Trade
Practice Committee which shall mneet with. the Trade Practice Com-
mittees under such other Codes as mnay be rela~ted to this Industry
for the purpose -of formulating fair trade practices to govern the
relationship between production and distribution employers under
this Code and under such others to the end that such fair trade prac-
tics aybe proposed to the Adminstrator as amendments to this
tCoes nand~cl such other Codes.
ARTICLE III-STIPPLEMSIENTAI L CODES
SECTION 1. Supplemental Codes pertaining to existing Divisions
of the Industry are contained in Exhibit A and Exhibit B attached
hereto which are specifically' made a part of this Basic Gfode.
Additional Supplemental Codes may be filed with th~e Basic Code
Authority and, if not inconsistent with the provisions of this Basic
Code, may be recommended by it to the Administrator. When
approved by the Administrator, after such notice and hearing as
he may prescribe, such Supplemenrtal Codes shall have the same force
and effect as any other provisions of this Basic Code.
ARTICLES IVT-HEoTRra orF LBBon
'SECTION 1. Emnplo~yeeg ini the Indusftry shall not be required or
permitted to work hours in- excess oftelimits prescribed in the
following schedule :
SCHEDULE OF WORKING HOURS
(a) Watchmen: Fifty-six (56) hours in any one week; but not
more than six (6) days in any seven (7) day period; or fifty-six
(56) hours in any one week but not more than eight (8) hours in
any one day.
()Chauffeurs, truckdrivers and their helpers: One hundred
eighty (180) hours in. any period of four (4) consecutive weeks,
provided, however, that tim~e worked in excess of n3ine (9) hours in
an one day or forty-five (45) hour in any one week shall be paid
for as not less than, time and one-third.
(c) Engineers, firemen, electricians: One hundred sixty-eight
(168) hours in any period of four (4) consecutive weeks, provided,
however, that time wRorked in excess of nine (9) hours in any one
day or f~orty-five (45) hours in any one week shall be paid for as
nrot less than time and one-third.
(d) All other laborers, mechanical workers or artisans employed
in any plant, mill or factory, or on work connected with the opera-
tion of such plant, mill or factory:--Eight (8) hours in any one
day andl forty (40) ours in. any one weekI provided, however, that
these maximum limits may be exceeded in any twelve (12) week-s
of the calendar year p~rovided all time worked m1 excess of the max-
imum prescribed shall be paid for as not less than time and one-
thtird and provided further that no employee shall be required or
permitted to work in excess of ten (10) hours in any one day or
forty-eig:ht (48) hours in any one week.
(e) Eployees regularly engaged in a managerial or executive
capacity and their personal secretaries, foremen and supervisors,
receiving thirty-five ($35.00) dollars or more per week, anld outside
salesmen : No limitation.
(f) All other employees: Forty-eight (48) hzours- in any' one week
but not to exceed three hundred twenty (320) hours in any period
of eight (8) consecutive weeks.
SECTION 2. NO limitation contained in said schedule shall apply
to employees of any class when engaged int emerfency repairs or
emergency maintenance work occasioned by breakdowns or involv-
ing protection of life or property, provided, however, that all time
worked in excess of the limlitations prescribed in said schedule shall
be paid for at not less than time and onle-third.
OECTION 3. No employer shall permit any emnployree to work for
any time which, when totaled with that already performedl with
another employer or employers in this Industry, exceeds the: max-
imum permitted herein.
SEC'TION 4. No female employee shall be required or permitted
to work between the hours of 10 P.MI. and 6 ~A.M/-.
AIRTICLE TT- AFGES
SECTION 1. The minimum rate of wages of any emp~loyee, other
than office or clerical employees, employged in. any plant, mill or
factory or on work connec~ted- with theoperation of any such plant,
moill or factory shall be as follows:
~Male labor, 40 cents per hour.
Female labor, 35 cents per hour.
SECTION 2. The minimum rate of wage of any office or clerical
employee shall be as follows:
(a) Ini cities having a population of 500,000 or more, or in the
immediate trade area of such cities, at the rate of fifteen ($15.050) dol-
lars per week.
(b) In cities having a population of less than 500),000 and more
than 250,!000, or in the immediate trade area of such cities, at the
rate of fourteen dollars and fifty- cents ($14.50) per week.
(c) In cities hav\ingr a p~oula"ltion olf less thani 230,0.00). or in the
immediate tr'ad.e areca oif suichJ cities, at thle r.ate clf fouritee~n ($14.00)
dollar rs per week;.
Population for thle pjurp cre of thiis Section rlhall be dtetermlined d
by reference to thie Inite~st F~ederal cenaus..
SECTION 3. Thiis Arti('le etab:tlliShes~ ;I nIljilllinunl Irate of pay w8chich
shall aIpply~ irrespe~Ic tivi e o~f whlethler31 an emloeee is actually compen-
sated on timei-raite,, piece~-w\orkk or other~i basis.
SECnowN 4. Female empllloyees per~for~ming~ sub~tantiallly the samne
work as malle emplloyees shall r~eceive thle sam~e rate: of pay. as male
employees. Thle Bas~ic Codire Authority -hall wTith~in ninety (90) days
after thle effe~ctiv'e date o~f th~iis Coder file w-ithl the Administratori a
description of all o~ccupatnions~ in thle Indcultryv in w~hic~h both men
andl wone~n ar~e emptloyed.~l
SECTIION ;r. Tjle WagC 'aftes of :11 emplllo-yeesi reee1vinlg more than
the mlinimnum rates herein n precscr~ibedl whlic~h have not been adjusted
since June 15. 193::3, shIall b~e r~eviewed andIc such adjustments made
therein as ar!e equitable inl thec lighlt o~f all thle cir~cumlstalnces but in'
no ense shllnl the wagRe rantc be dlcr~lnease. W\ithtin sixzty (60) days
after the effective dati hlletref thle Bas~ic~ Codte AuthorityT shall report
to thle Admninistlturat tle ac~tionr takenl by~ all Inmlembes under this
to, the exftent of I mre Ililthanll 0', i f ~the ftotl1 number of employees
d~esc~ribedl inl Sc.rtion1 L' of thlis Arltji.le, mayl! beC emlployed at a w\age of
not le-s thann Su~'l < f thle mnimri iumi pr!esc~ribedc~ b~y said Section, pr~o-
S~EcTION T. ,A jfl.'lll W~lowc ellflully capnl,~ t 18 Illuiitedl bca~use of
on li ght. wollrk at a wage~ beIlllow the( rI i nIi ninsurni et abIilised by thlis Bas~ic
C'ode if thec (.mpIloyer.1 obtin?;ls fmanlr thle S~talte' athority, destignated
SUCI .ch peson's enlrllloymrle nt at such.1 wave andlll forl such hours as shazll
be statedl in thle cerl'itfiente~. SuChlr nothrc~lity shadll be guided~t by the
instmet(.ionll s of f~the United~ .Ctates~ I)e'll'ntmenrlt o~f Labor inl issuing
cer~tifienttes touch per.1 ons1.~01 Ea;ch emprllo~e ~hal~l file monthly w\ith
shlowing~ thle wng.:Is panid~ to, 0181 theC nInInSIumII hourlls of work for such
SECTION 1. Plli Ierson~l underi'l -lteezn (1G:) years of age shall be
emplloyed~ in thec Indus~~try. NoI petrson u~ndler eighteein (18) years ofE
age shall bic emll oyall aIt olperatiolns orI oc~c~upations w~shich are hazard-
ousin atue o
tive dante of th~is (code a list oIf sulch operatio ns andc occupa~tion. In
any .Ctate an empl,~, cloyeIr hll be dlt~reeme to, have~I com~plied with this
prov\'ji(ion :.': to agre if he shall hanve onr file a certificate or permit duly
signedl by the nuthority in such State empoweered to issue~ emp~loy-
mlenlt or ageP cer~tifientes orI p:ermlits sh~owinlg that the employee is of
the r~eq~u i ere age.
SECTIO.N 2. Employees shall have the right to organize and bargain
collecti-vely thlroulgh representatives of their own choosing and shall
be free from the interIferetnce, restraint or coercion of employers of
labor, or their agents, in the designation of such r~epresent~atives or
in self-organizat ionl or in other concertedl activities for t~he purpose
of collective bargaining or other miutual aidl or protection. No em-
ployee and no one seeking~ emnployment shall be required as a condi-
tion of empl.loyme~nt. to join any compny~n~ union or to refrain from
joining, organizing or ~Ssisting a labor,1 organization of his ownn
choosing. Emplloyersj shall comp~ly wFit.h the maximum hours of
labor, minimum rates of pay and: o)ther1 condIitionl s of employment
appl-roved or prescr~ibed by the Presidetnt.
SEcTIO~N 3. NO prov'ision in this C'od~e shalll supersedl e any State or
Federal lawip which impos-les on emplloy!erss more str~ingen~t require-
inentss as to age of e~mployees, wages, hours of wTor~k. or as to safety,
health, sanitar~y or general working condlcitions or ins~uranlce or fire
protection, than are imlposed by thlis Code.
rCEnowC) 4. No em~ployer shall rec~lasisify employees or duties of
occupations performed o'r engage in any otlier subiterfuge for the pur-
pose of defeating the law!pos~es or p~rovisions o.f the Act or' of this
SCCECnow(~ 5. All emp!~3~loyer shall k;eep posted~ copies o.f Articles IV,
V and VI of this B3asic C'ode in c~onispicuolus plneies ac~cessib~le t~o
Secenwc~ 6. Every employ~1~er shall mlak~e reasonlable prov,\isions for
the safety and health of his empilloy)ees at the ple~re andl du~ring th~e
hours1' of their employ ie~nt. Sitandrdlei s for safety and health shall
be uLbmnitted by the Basice Clode Auth~ority. to, thle Adm~inis;tra3tor
within six (6) moicnths after thle etfecrtiv.e da~te~ of this C'ode.
SECTION. 7. The Ba~iei Codie A~uthiorityt shall makle a studyl! of
cond~itionsl~ in the Indlustry! to determine~ the fensibility o-f thle aldoption
of a shorter work-ingiicc w~eek and sh~all, w~ithiin three (3) months after
the effective~ date of this C'ode. manke a rePlort of its finding to the
Admi-lni is t~1ra1t or. The Basic Codce Aurthiority shanll also submiit to the
Admlinistr~ator within six (6) months after the effective date of this
Code a plan for the stabilization andl regurlarization o~f employme~nt..
SEC'TION 8. The mI~anulfac~ture~ or 1arIt ial malnulfact ure of any p~r~oduct
of the Industry in homer; shall be pr~chib~itedl.
ARTICLE V11- REPOR~T~s AND) .'l.TIATITICS
S;ECTION\ 1. The! Ba~ic Code Auth~oiity shall replac~ire from all mneml-
be~rs such reports as ar~e necessary~ to, effectua~te thle purpose oif this
Basic Code and the Natio~nal Indcustriail Re~overy! Act. N~o publica-
tion thitieref to anyone orl in anyi man~nelr lhall b~e made others thann in
combina~tionr within similar inlformatioic n fur~nished~c by other' Imembers
in which case publication shall be und~e o~nly in isuch~ manner as will
avo(id the di c~los,ing separa1tely of such~I conlfidlentiall information
except in. the case of BaS~ic- (codlc v~io~lartionl.
SCEc.now, 2. The B~asic- Codie Authlority .hall manke .-uc~h Ireports to
the Administrator as he may1 requ-lire.'
Seenic- s 3. In addition tor informs~luilln requ~lired to be subm~nitted- to
the Ba ~ic Code A~uthorityty thcr~e .41ha1lle furn'lishedC to goverlnmnent
agencies such staitistical inlfolntirmaio as the A~dmnilstl~tratr may deemn
necessary for the pulrPOse r~erited in Section 3 (a) of the A1Ict.
Nothing contaninedl inl this C'od- e shllnl reliev\e any member.,~ i of anly
existing obligartion~s to) fur~nishl reprl''ts to any g'overnmenl~tlf agency.
SE(.TION 1. Ko pronielOn Of tills niASic Codte shlnl be so applied
as to p>ermlit monoplol es or monopolistic pra:ctices, or to elianinate,
opprec-ss or discr'imina~te aganinlst small enterprises.
ARnTIcLrE IS -~rE~cOM)I ENDATI(IOSS
SECION1. 11 8010 ooe Authlority may frolm time to time on
its ow~n initintive or oIn re:-~icmmendation by a Su1pphonental.f~l CodCe
on conditions in thre Induslltry whlich w\ill tend to effectuate the opera-
tion of this Basiic C-o:l' andi oir the respliective Supp~lemental Code
and. th~e poclic~ies of thet Acit. Sulch r'eco~,lllcnunendations wChen approved
by the Admlinist trator, after. iichl nortice and hearing as he sha~ll pre-
scribe, .shall have. thle mine folr'Ce and effect as other pr1ovisions of this
Basic Codle andl or thle respe~cctive~ upplemelrl'ntal Colie.
ARITICLIE S--(;ENERA~. L PROV.ISIONSI
SECTroN 1. A~ny work orI p~'(rocess incidlental to and carried on by a
members at his~ plant as;; a part oif thle mnurfacture of any product
of t~he Induslltry~ shalll b~e r~egarddc~c as a part of this Induslrtr"y.
SECTION i),Bl.l CU l f the~ prlov'iicalOS Of flli' 13r1iC COdI 31 Und/O
Supps~l~lmetal ~ciC nlewichl are orI ma~y beiccmel a part hi~ereof as are
not required to be ilc~luded~t there~in b~y the Act, ma~y, with the ap-
proval" of thle Administ ra-tor, b~e mloiihed and eliminanted as changes
in circumstance s or~ exper~iience mayv indicate.
SCECTrow ;3. ThiiS Basir _c ~C de and or' such Suppllemlental Codes as
are or may~ bcc:omne a plr~t he~lreo~f are expressly made subject to the
riaht, of thie Preside~nt inl ncordal~l~ncec, with thle provisions of Section
10 (b) of thle Act, fromll time~ to, timne to cancel or modify anry border,
approval1, lir.enser, rule or regulationl i.-;ued~ ulnder TPitle I of said
Act, and to ca~ncel or mlod~ify his aIpproval of such Codes or anly
conditions impilosed b~y hliml upo)n hIS approval thereof.
SEC'TIONr 4. Thliis Basic~ Co(de shall be~comne effective onr the second
Monday after the date upon which it shall be approved by the
Presid-ent of th~e Unite~d States.
App~roved Co~de No. 412.
Registry No. 409--(M.
SUPP~LE.11ENTTAL cODE FORl TH-E TRAD)E M\ANUF~ACTURERSj DIVISION
OF THIE LOOSE LEAF AND EBLNKi BOOKi INDUSTRYT
SECTIN 1. TChe purpose of this Supplemental Code is to supplement the Basic
Code of the Loose L~eaf and Blank Btook Indlustry to make it speclifielly app~lica-
ble to the Trade~ Nalaufue~turelrs Division of such Industry.
~Annous II--TRADE: lANU'FACTL'BING DIVISION
SECTON 1. This Divrision shall include all members wYho sell tile pr~odlucts of
the Industry to distr'ib-utors for resale.
ABnTiczB III--SUPPLE;ME;NTAL COBDE1 AL'THonlTY
SEOYTION 1. There shall forthwith be constituted a Suplplemntantl Code Authlor-
ity of the Tra~de Manufacturers Division of the Loose Le~af undl Blank Book
Industry csonsiisting of three persons elected in the follow~inlg~ mninelr at a
meeting called for such purpose within thirty (30) days after thle apyproval of
this Supplemental Code.
(a) The selretalry of the Loose Leaf and Blanki Book Manlruflc~turers Asco-
ciation shall notify all known members of the Trade MaLlnlnr~ufaturer Division
at least ten (10) dayi~s prior to such meetting~.
(b) Em-h ahssenting member shall furnish to the Secrettary~ a1 rcetifiedl recordl
of its sales to dlistr'ibutors. for resale for the period January 1, 10353 to, Deceml-
be 1 1.1Such information shall be krept conlltiential by. thle Sec1retary.y
(c) Ea;chl member actually engagei~d in selling p~roducts of the1 Indrustry to
distributors for resale will be entitled to one vote for its first 830.(nl,0 wor~lth of
sales to distributors for resalle for the period;t January 1, 10r33 to, D~cembiler 31,
1!,3:. Ealch member will be etiiirt:le to one :nc.hlitional volte for each add~itional
$100I.II;00 worth of ce~lrtilledl sales ciuring the period January 1, 1Z)38- to, Dicembn~er
(d) A Icnominatin~ committee will be chosen by a maljorityv votle frllml those
present at the meetin=. Nominations by the Committee will I.,e submnitted to- thle
full meet'CineL. Opportunlity will be given, for additional nomrina~tionls andr the
Supplemuental Code Au~thority will be elected by ma;'jor~ity ralte als dewcrihedl in
(e) In addition to the memnbershzip as p1'1rovied in Sectionl 1 of this A~rticle,
the Administra~tor may designate one or more persons to serv-e oIn thle Supple-
mental Code Authority for such term as he may7! fix. Tlhe person or persons so
dlesignatedli shall have no vote and shall serve without Compensati.:ti on fromn thle
SacTIONY 2. The Supp~lemental Code Authorlity. shall be chargedt generallyII with
the duty. of administering this Supplemenrtal Code. If the Admuinistraltor shall
determine that any1! action of the Supplemental Code Authority may be ulnfair
or unzjust or contrary to the public interest, the Admllinirst rator maye Irequire that
such action be .vu~lendedtc~ to nffotrdl an oppor~l~llltunit for investicntioln of the
merits of such action and further consideration by the ~Supprt~lementl Code
Audiarit. or aI'Incy pelndingL ~final action which shall not be effective unless the
Administrator apllrovesc or unless he shall fail to disapprove after thirty dlay's
notice to him of intention to proceed with such action in its original oI'r moditled
SEcnrow 3. lach. industrial association directly or indlirec~tly par~ticipa,.ting in
thze selection, or activities of the Suppllemena~l~~ Code Authority sha11 ll (1Iimpose
no inequ~litalelI restrictions on membership and (2) submit to, thle Adadmnistrator
true copies of its articles of associati oln. by-laws, r'eglalitio~l~ nlt and anymenld-
ments wrhen malde thereto, kethertlc with such other information as to, membller-
ship, orgal,;nizationl and activities as the AQdministrator mayg dee~rnl necessary
to effectuate the plurposes(' of the Act.
SEOTIO 4. In cordelr tha~t the Supplemental Code AuthoritS shall at all times
be truly representative of the! Industry and in other respects compll~ly w~ith the
prov.isions of thie Act, the Administrator may prescribe suchl hearingrs aIs he
may deem proper and thereafter, if he s~ihall find that the Supplemental Code
Authority: is not truly representative or does not in other :respects comply with
the provisions of the ALCt, may require an appropriate modification inr the
method of selection. of the Supplemental Code Authority.
SEcrrzon 5. The expenses of administering this Supl~aemntal Code shall be
borne pro rata in accordance with a formula to be adopted byr the Supplemental
Code Authority, subjsct to the approval of the Administrator, by all members
of the Industry who accept the benefit of th1e services of thie Supplemental
Code Authority or otherwise assent to this Supplemental Code.
SsorroN 6. The Suppleme~ntal Gode A8uthority may use such trade associa-
tions and other agencies as it deems proper for the carrying out of any of the
activities provided for herein, provided that nothing herein, shall reliee the
Supplemental Code Authority of its duties or responsibilities under this Sup-
plemental COtxe, and that such trade associations and agencies shall at all times
be subject to and comply with the provisions hereof.
SECTION 7. NOthing contained in this Supplemental COde Bhall constitute
the members of the Supplemental Code Authority partners for an~y purose.
Nor shall any member of the Supplemental Gode A~utho~rity- be liable in anyf
manner to anyone for any act of any other members, o~flcer, agent, or employee
of the Supplemental Code A~uthority. N1~or shall any member of the Supple**c
mental Code Authority, exercising reasonable diligence in. the conduct of his
duties hereunder, be liable to anyone for any action or omission to act, under
this Supplemental Code, except for his owvn willful misfeasance or nonfeasance.
Arian IV '-AccolrrvTINo-8nzz~o
Smarlowm 1. The Supmplemental Code Authority shall, as soon as practicable,
cause to be formulated an accounting system and method of cost finding and/or
estimating capable of use by all members of the IndustryT. After such system
and methods have been forulated and approved by the Administrator, full
details concerning them shall be made available to all members. Thereafter,
all members shall determine and/or estimate cost in accordance with the prin-
ciples of such method.
8ECTON 2. The Supplemenztal Code A8uthority may from time to time dleter-
mine that an open price plan. of selling such product or products of the 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 Indus-
try wrJho manufacture such products novt less than thirty (30) days prior tot
the date so ~fixed.
sEiCTION 3. At least ten. (10) days prior to such date, all members of this
Division shall file with the Suppl~emental Code Authority, or such agent or
agents as it moay desig-nate, a schellule of Ipri~ces and terms of sale for all such.
SECTION 4. all such schledules shall be in 80011 forB1 as the Supplemental
Code A~uthority shall prescribe and shall contain all information necessary to
permit an exact determination of the net price per unit after all discounts
or other deductions have been made, whether pertaining to a single order, a
commitment for future dleliv.ery or a contract. All such original schedules
shall become effective on t'he date specified in Section 2 of this Article.
SECTION 5. A revised schedule or schedules, or a new schedule or schedules,
may be filed by a member with the Supplemental Code Authority at any timze.
Any. schedule or notice filed hereunder shall become effective ten (10) day~~s
after the date of filing provided, however, that an increased price may
become effective at such. earlier date as the member filing the same shall fix.
SECTION 9. The Sup~plemlentlal Code Authority shiall prOmptly supply all melB-
bers of the Division wholi manul~f~l~utre any particular product writhi copies of
all schedules and rev~\ised sobetdules which pertain to such product. On re-
ceipt of information that a schedlelor then on~ tile has been revised, or that a
new~ schedule has been filled, any member of the Division may file a revisedl
schedule conforming as to price and terms to the schedule of such other
mrember and effecctive~ on the same date.
SECTION 7. NO such schedule of pr~ices andt terms of sale filed by any member,
or in effect any time, shall be suceh as to permit the sale of any product at
less than the cost thereof to such member dete~rminedl in the manner provided
in Section 11 of this Article plrov~ided,. however, that any member may be
a Bee paragraph 2 of order approving this Code.
notice to the Supplemental Code Authority adopt as his own a lower price
~filed by another member of this Division. Such adoption shall become auto-
matically void upon the withdrawal or revision upward of the price adopted.
SECTION 8. No member who shall have filed a price for any product of thle
Industry shall sell such product for less than such price or upon terms or
conditions more favorable than stated in such price schedules.
SECTION 9. The Supplemental Code Authority shall furnish, at cost to any
interested person or persons copies of anyr price schedules which may have
been filed. Any such. price schedules shall be made available to such persons
at the same time that they are sent to members.
SECTION 10. No member shall sell any product of the Industry for which no
open price plan is in effect at less than the cost thereof to such member deter-
mined as provided in Section 11 of this Article, except to inheet the price of
a competitor whose price does not violate such Section.
SECTION 11. COSt, for the purpose of thiis Article, shall be determined pur-
suant to the method of accounting and costing prescribed as provided in See-
tion 1 of this Article, as soon as such method is adopted and approved, and
theretofore pursuant to the method employed by such member subject to such
preliminary rules as the Supplemental Code Authority shall from time to
time prescribe with the approval of the Administrator.
SECTION 12. Nothing herein contained shall be construed to prevent the dis-
position of distress merchandise required to be sold to liquidate a defunct or
insolvent business or of discontinued lines, damaged goods or seconds in such
manner, at such price and on such terms anld conditions as a member shall
publish with the Supplemental Code Authority prior to the sale thereof,
ARTIOL V--PLANNING ABND BESEARCH
SECTON 1. In order that economics in manufacture and distribution, stand-
ardization and sim~plification of Industry products, and more e~ffcient methods
of conducting the business of the Industry mnay be developed, the Supplemoental
Code Authiority shall cause to be established in this Division a Planning and
Classification Bloard which shall from time to timze make studies and recommen-
dations to the Supplemental Code Authority on any phase of the business of the
Annousr~E VI--TRADE PEAOTIOEs ANDo CUsTOMs
SECTION 1. The following are hereby constituted Trde 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 descriptions, statement,
record or undisclosed consideration.
(b) Members shall refrain. from dumping, extension of stated credit and
(c) Members shall not wilfully injure by falsely defaming a competitor's
goods, credit or ability to perform his contracts.
(d) MLembers shall not wilfully induce or attempt to induce the breach of a
(e) No member shall give, permit to be given, or directly offer to give, any-
thing of value for the purpose of influencing or rewarding the action of any
employee, agent or representative of another in relation to the business of the
employer of such employee, the principal of such agent, or the represented party,
with or without the knowledge of such employer, principal or party. The fore-
going provisions shlall 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 herein defined.
(f) No member of the Industry shall ship goods on consignment, except under
circumstances to be defined by the Supplementtal Code AButhority where peculiar
circumstances of the IndustryT require the practice.
ARTCLE VII--EFFEC~TIV~ DATEI
SECTON 1. This Supplemental Code shall becomee effective on the second
Molinday after the date upon which it shall be approved by the President of the
BIUPPLElVENTAL CODE FOR THEIR DIRECT MANUFACTURERS DIVISION
OF THE) LrOO1E1 L4EA AQND) BLANK BOOK INDUSTRY
SECPION 1. The puros of this Supplemental Gode is to supleent the
Basic Code of the Loose Leaf and Blank Book Industry to make it specifically,
applicable to the D~irect Manufacturers Division of such Industry.
ARTIcL;E II---DIRaeC MANUFATU~a Divisron
SE(RION 1. This Division shall include all members who sell the products
of the Industry direct to industrial, commercial and institutional users, or to
wholly or partially owned purchasing subsidiaries of such users.
ARTCL III--$UTPPLEMlENTL'u CODE) AUTOR;I~T
SEcTION 1. There shall forthwith be constituted a Supplemental Code Autholr
ity of the Direct M~anufacturers Division of the Loose Leaf and Blank Book
Industry consisting of three persons elected in the following manner at a meet-
ing called for such purpose within thirty (30) days after the approval of this
(a) The Secretary of the Loose Leaf Manufacturers Institute shall notifyr
all kncown members of the D~irect MVanufacturers Division. at least ten' (10) days
prior to such meeting.
(b) Each assenting member shall furnish to the Secretary a certified record
of its sales of Industry products direct to industrial, commercial and institu-
tional users or to wclholly or partially owned puchasing subsidiaries of such
users for the calendar year ending D~ecemnber 31, 1933. Such information shall
be kept confidential by the Secreta ry.
(c) The voting power of the members of this Division shall be detterminedl as
A Class A member is on the value of whose shipments, as defined in
Section 1 hereof, is less than one-fifth of the highest value reported by any
member for such year. Each Class A, member shall be entitled to one vote.
A Class B3 member is one the value of wPihose shipments thus reported is
more than one-fifth, but less than two-fifths, of such highest value reported.
Each Class B member shall be entitled to two votes.
A. C~lass C member is one the value of whose shipme~nts thus reported is
more than two-fifths, but le~ss than three-fifths, of such highest value reported.
Each Class C member shall be entitled to three votes.
A Class D member is one the value of whose shipments thus reported is
more than three-fifths, but less than. four-fifths, of such highest value reported.
Each Class D member shall be entitledl to four votes.
A Class E member is one the value of whose shipments thus reported is four-
fiftbs of the highest value, or more. Each Class E: member shall be entitled
to five votes.
The Secretary shall certify to eacht member his designation of thte class
of sueb members., but shall make no disclosure of the specific data upon1 which
such designation is fixed.
(d) Nominating Committee will be ebosen by a majority vote from.
those present at the meeting. Nominations by the Committee will be submitted
to the full meeting. Oppo'rtunity. will be given for additional nominations and
the Sunoleemental Code Authority will be elected by majority vote as described
in Section (c).
(e) In addition to the membership as provided in Section 1 of this Article, the
Admilnistrator may designate one or more p~erson~s to serve on the Supplemental
Code Au~thority for such term as he may fix. The person or persons so desig-
nated shall have no vote and shall serve without compensation from the
SEcTION 2. Thze Supplemental Code Authority shall be charged generally with
the duty of administering this Supplemental Code. If the A~dministrator shall
determine that any action of the Supplemental Code Aeuthority may be unfair
or unjust or contrary to the public interest, the Administrator may require that
such action be suspended to afford an opportunityT for investigation of the
merits of such action and further consideration of the Supplemental Code
Authority or agency pending final action `which shall not be effective unless the
Administrator approves or unless he shall fail to disapprove after thirty days'
notice to him of intention to proceed with such action in its original or modified
SECTION 3. Each industrial association directly or indirectly participating in
the selection or activities of thle Supplemental Code Authority shall (1) impose
no inequitable restrictions on membership and (2) submit to the Administrator
true copies of its articles of association, by-laws, regulations and any amend-
ments wphen made thereto, together with such other information as to member-
ship, organization and activities as the Administrator may dee~m necessary to
effectuate the! purpose of the A1ct.
SEcTION 4. In order that the Supplemental Code Authority shall at all times be
truly representative of the 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 Supplemlenltal Code
Authority is not truly representative or does not in other respects comply with
the provisions of the Act, may require an appropriate modification in the
method of selection of tlhe Supplemental Code Authority.
SEOTION 5. The expenses of administering this Supplemental Gode shall be
borne pro rata in accordance with a formula to be adopted byr the Supp~lemental
Code Authority, subject to the approval of the Administrator, by all members
of the Industry who accept the benefit of the services of the Supplemental Code
Authority or otherwise assent to this Supplemental Code.
Smar~oN 6. The Supplemental Code Authority may use such trade associations
and other agencies as it deems proper for the carrying out of any of the activities
provided for herein, provided that nothing herein shall relieve the Supplemental
Code Authority of its duties or responsibilities under this Supplemen~tal Code,
and that such trade associations and agencies shall at all times be subject to
and complyT with the provisions hereof.
SErCTON 7. Nothing contained in this Supplemnental Code shall constitute the
members of the Supplemental Code Authority partners for anly purpose. Nor
shall anly member of the Supplemental Code Authority be liable in anly manner
to anyone for any act of any other member, officer, agent, or employee of the
Supplemental Code Authority. Nor shall any member of the Supplemental
Code Authority, exercising reasonable diligence in the conduct of his duties
hereunder, be liable to anyone for any action or omission to act under this
Supplemental Code, except for his own willful misfeasance or nonfeasance.
ARTIcLE IV-ACOOUNTI~NG-$EU ING
SECTION 1. The Supplemental Code Authority for this Division shall, as soon
as practicable, cause to be formulated an accounting system, and method of cost
~finding and/or estimating capable of use by all members of the Industry.
After such system and methods have been formulated and approv-ed by the
Administrator, full details concerning them shall be made available to all
members. Thereafter, all members shall determine and/or estimate cost in
accordance w~ith the principles of such methods.
S~ECTION 2. The Supplemental Code Authority may from time to time deter-
mine that an open price plan of selling such products of the Industry as it
shall specify shall be put inlto effect on such date as it shall fix, provided, that
such plan shall have been approved by the Administrator. Notice of such
determination shall be announced to all known members of the Industry, who
manufacture such products, not less than thirty (30) days prior to thie date
SECT/ION 3. N~o member shall sell any product of the Industry at less than
the cost thereof to such member determined as provided in. Section 4 of this
Article, except to meet the price of a competitor whose price does not violate
SECTION 4. Cost, for the purpose of this Article, shall be determined pursuant
to the method of accounting and costing prescribed as provided in Section 1 of
this Aerticle, as soon as such. method is adopted and approved, and theretofore
pursuant to the method employed by sueb member subject to such preliminary
rules as the Supplemental Code Autho~rity for this Divisiion. shall from time to
time prescribe with the app~roval of the Administrator.
SEcnON 5. Nothing herein contained shall be constre to prevent the dispo-
sition of distress merchandise required to be sold to liquidlate a defunct or
insolvent business, or of discontinued lines, damaged goods or secods, in such
manner, at such price a~nd on such terms and conditions as a member shall
publish with the Suppleme~ntal Code Authority for this Division prior to the
Smo~noN 6. Nothing ]herein contained shall be construedl to prevent the fulfill-
ment of a bona fide contract existing on the effective date of this Code. SuchL
contracts shall, however, be reported by each member to the Supplelmental Code
Authority for this Div~ision within thirty (30) tlays after the effective date of
ARTLcu V---PLANNING AlND RESEABRCH
Sme'roN 1. In order that economies in manufacture and distribution, stand-
ardization andl simplification of IndustryT products, anld more efficient methods
of conducting the business of the Industry muay be dlevelopDed, the Supplemental
Code Authority shall cause to be established in thiis Division a Planning and
Classification Board which shall from time to time make studies and recom-
melndtions to the Supplemental Code Autio~rity on any phase of the business
of the Industry.
ASsets VI--TRADE1 PRACTICS AND CUSTOMS
Senown 1. Thle followingr are hereby constituted Trade Practices for the
Industry and failure to comply with the provisions thereof shall be a violation
of this Code:
(a) lilembers of the Industry shall not practice deception in regard to that
which is so.ld or its selling price by false or misleading descriptions, statement,
relordl or undisclosed consideration.
(b) AlIembers shall refrain from dumlnping, extension of stated credit and
(I]) Iklembters shall not wilfully injure by falsely defaming a comzpetitor's
goods, credit, or ability to perform his contracts.
(d) 141emubers shall not wilfully induce or attempt to inilw-ec the breach of a
(e) No member shall give, permit to be given, or directly offer to give, any-
thing of value for the purpose of in~fluencingr or rewarding the action of anly
employee, aglEntl or rep~risen~tative of another in relation to the business of the~
employer of such employee, the principal of such, agent, or the represented
party. with or without the krnowledge of such employer, principal or party.
The fo~regaoing provisions shall not be construed to prohibit free and generally
distribution of articles commonly used for advertizing~ except so far as such
artickcs are actually used for commercial bribery as herein detfined~i.
( fl No members of the Industry shall ship goods on consignment, except under
circumstances to be defined by the Supplemental Code Authority where p~culiar
circumstances of the Industry require the practice.
PARTICLE: VII--EFFEC-1m~E D)AT
Soenow 1. This Supplemental Code shall become effective on the second
nlionday~ after the date uponz which it shall be approved by the President of thze
UNIIVERSITY OF FLORIDA
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