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Approved Code No. 448
Registry No. 1031--3-03
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
INDUSTRY AN~D TRADE
AS APPROVED ON MAY 31, 1934
WE DO OUR PAR'TP
GOVER~NMENT PRLINTING OFFICE
This publication is for sale by the Superintendent of D~ocuments, Governmaent
]Printing Off~ice, Washington., D.C., and by district offices of the Burean of
lioreign and Domestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COM6MERCB *
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Jacksonville, Fla.: Chamber of Commerce Building.
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Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
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New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plumne Street.
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SSeattle, W~ash.: 800 Federal Office Building.
Approved Code No. 448
CODE OF FAIR COMPETITION
OPTICAL WH~POLESALE INDUSTRY ANJD TRADE
Als Appro~vecd on 1May 31, 1934
AtlPPROVING CODE OF FAIR COMPETITION FOR TH OPFTICAL IEIOIZ8ALE
INoUSanx wND TRAD
An application having been duly made pursuant to and in full
compliance with the provisions of T~itle I: of thne National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Optical Wh~olesale Industry and Trade,
and hearings having been duly held thereon and the annexed report
on said Code, containing findmgs with respect thereto, having been
made and directed to the President:
N\OW, THERIEFIiORE, on behalf of the President of the U7nited
States, I, H-ugh S. Johnson1, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including lExecutive Order N~o. 6543-AI, dated Decemnber
30, 1933, and otherwise do herebg incorporate by reference said
annexed report and do f nd that said Code complies in all respects
with the pertinent provisions and will proote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
ofe Fair Competition be and it is hereby approved, provided, that thes
following changes be, and the same hereby made:
(1) Th~at Sections3 1. and 2 of Article IIbe and they hereby
are, eliminated, and in lieu thereof, the following provision be, anld
it hereby is, inserted:
"1~. No employee shall be permitted to work in excess of forty
(40) hours in any one w~eek, exclrept that any employee may be
permitted to wrorkr for a maximnumn of forty-eight (48) hours per
w~eek during any twelve (12) weeks in any fiftyp-twfo (52) weekz
(2) That Subsection1,Scon6ArilVIbemnddan
thre same hereby is, to read as -follows~:Sci 6 rcl I b mne ad
"L(1) To provide facilities for: arbitration, other than. in labor
disputes, and subject to the approval of the Administrator, to pre-
scribe rules of ~procedure and rules to effect compliance with awards
64007* 657-----34 (61)
(3) That Section 5 of Article VII be, and their same hereby is,
eliminated from the Code.
(4) That Subsection (a), Section ~11 of Article I be amended,
and the same hereby is, to read as followc~s:
(a.) The Code Authority shall, subject to the approval of thze
Admmiistrator, as soon. as practicable~, issue a list of such allowances
on all opthalmic equipment and machinery, classifying thet same
by name, type and model. AllowanIces shall not be made in excess
of thne amnounats named in this list.
Pending the issuance thereof, and after the issuance~ thereof, inl
the case of items not included in such list, no member of the in~-
dust~ry and trade shall allow on merchandise trade in more than a
fair resale price, minus the cost of reselling on the goods or equip-
ment taken in trade."
Huanrc S. Jo-Nwson,
Admi~nistrantor for I~ndulstrial R~ecovery.
Approval recommended :
GEO. L. BERRY
Division Admi'nisntd ator.
WJ~smwIPGONo, D. C.,
May 31, 1i934.
REPORT TO THIE PRESIDENT
The White HBou~se.
Smr: A Public Hearing on the Code of Fair Competition for the
Optical Wholesale Indlustry and Trade, submitted by a Code~ Com-
mittee represent ing approximately 80 percent of the volume of
business of said Trade, was conducted in Washington on December
4, 1933, in accor~dance with the provisions of the National Industrial
The maxilmum hours permittedl under this Code are forty (40) in
any one w~eekr. Provision is made for 96 hours extra work in anly 59
week period, provided, that any employee working these extra hours
will be grlanted~ leave with pay for a period equal to the overtime
Th'le minimum wage provided in this Code is $16.00 per week of
forty (40) hours. Learners, who are limited to a six months learn-
ing period, are to be paid 80 percent of the minimum wage. M~es-
sengers are to be paid at the rate of $12.00 per week. Pro~vision is
mlade for an equitable adjustment of the wvage above the minimum.
The members, of the Oiptical W~holesale Industry and Trade, in
additional to performing the usual functions of who~lesale distr~ibutionl,
are engaged in the vast majority of establishments in the fabricat-
Ing of lenses from the rough, semi-finishedl or unceut form -to a fin-
ished product to conform to the practitioner's prescription, and the
fitting of these lenses to a suitable spectacle or eyeglass frame or
Prescriptions cannot be hatndled in volume andc styled to a definite
pa"tternI inasmuch as each unit must be handled separately5 to meet
certain individual requirements. It is necessary to hav-e a flexible
or~ganizationl capable of handling a varymng volume o-f work with at
least a small percent e of the employees being able to per~formn
various operations in precscr~iption wcork in order to properly fabri-
cate the varymng types of w~ork; that come into the shop. It is neces-
saryT to maintain prompt service at all times and this requires a
skeleton force, almost equal to the full time force, to handle orders
which cannot be anticipated. The demand is occasioned by the
highly personal character of the product, in that it meets the urgent
needs of a w~earer w\ho woulld otherwPise be unable to see with comfort
and per~formi h-is usual duties.
There were 5,700 wage earners emp~loyed in this industry in the
first par~t of 19:33. The 40 hour week would necessitnt~e the reem-
ploym~ent of about 1,100 wage ernerss or an increase of slightly more
than 16 p~ercent.
As a result of the increase in minimum wages, and in the total.
number employed, it has been. estimated that the increase in total
wages since? the President's Reomployment Agreement is about 7
~percent ovePr'the wange total prior to that date.
1------- --- --( -S)
The Deputy~ Administrato-r in his final report to me on said Code
havig found as herein set forth and on the basis of all the proceed-
ings in this mrattetr;
I find that:
(at) Said Code is well designed to promote the policies and pur-
poses of Title I of the Nationaltl Industrial 1Recov-ery Act, including
removal of obstructions to the free flow of interstate and foreign
commrce which tendl 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 indulcing and mainltaining united action of labor and ma~~nage-
mnent under adequate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
byT avoiding6 undue restriction of production (exrcept as may be tem-
porarily required), byT increasing the consumption of indlustrial and
agricultural products through increasing purchasing power b
redlucing and relieving unemployment, by implr~oving s~tandadso
labor, a nd by otherwise rehabilitating industry.
(b) Soit Industry normally employs not more than. 50,000 emp-
playees;; and is not classified byI me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent provisions of Fsaid Title of' said Act, including without limi-
tation Subwet cio- n (a) of Section 3, Subsection (a) of Section 7,
and Subsection (b) of Section 10 thkereo~f ; and that the applicannt
group is an industrial group truly representative of the afore~said
Industry; and that said group imposes no inequitable restrictions
on admrissioln to membership therein.
(d) Th~e Co~de is not designed to and will not permit mlonopolies
or mlonopo,~l ist~c. practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterpr~ises and wcPill not operate to discriminate against them.,
(f) TIlhose engaged in other step~s of the economic process have
not been dep~rived of the right to be heard prior to approval of said
Th'lis Indulstr~y has cooperated in a most satisfactory manner wcith
the Administrator in the preparation of this Code. From evidence
ad'duced d-ur~ingr the hearings and from recommendations and repors
of the va riours Advisory Boards it is believed that this Code as now
proposed and revised represents an effect.ive, practical, equitable
solution for this Indust~ry and for these reasons this Code, has been
Huno 8. JOHINSON, AidLild&/PalO?.~
M~lAY 31, 1934.
COD)E OF F"AIR COIMPETITIlONi FOR THI-E OPTCICALI
WH-OL;ESALE: IND~IUSTLRY AND TRtADE
To effect th2e policies of TPitle I of the National lIndustrial 3Re-
covery Act, this Code is submitted as a Code of Fair Competition for
the Ojptical W~holesale Industry and Trade and upon approval its
pronsions shall be the standards of fair competition for such Indus-
try alnd Trrade alnd bindi~ng upon every member thereof.
ARPTI[CLE II -DEFINITIONS
1. The term Optical WCholesale Industry and Trade as used
herein shall mean the wholesale distribution to the optical retail
andl wholesale t~rade, of sipecta~cles,; oxfords, 10rgnettes and other
ophthahlnic frames, mountings and accessories, all ophthnalmic lenses,
eyeglass and spectacle cases, parts, artificial eyres, bun-glasses, indu~ls-
trial goggles and eye protectors when equipped with prescription
lenlses, and the ser~vicing of prescrriptions and oth~erw~ise servicimr
eye wear and ophthlalmic products, at wholesale to the optical retail
and wholesale trade.
The term also includes the sale to the retail trade of instruments,
equipment, tools, machinery and furniture for use in examiningr eyes
and maktingr, fitting and repairing opht~halmic products.
2. The terml "'member of the industry and traide as used herein
includes, but without limlitation, any individual, partnerships asso-
ciation, corporation or other form of enterprise engaged in the
Optical Wholesale Industry and Trade, either las an. employer
or onl his or its own behalf.
3. TChe terml emp~loree" as used herein includes any and all
persons engaged in the industry and trade, however compensated,
except a member of the industry and tradie.
4. T~he term employer as usedl herein includes anyone by wh~lom
such employee is compensated or employed.
5. The term Optical Retailer or Retailer as used herein
shall mean a retailer whose sale of ophthalmic merchandise at retail
prices represents more than twenty-five percent (25%) of total sales
of ophthlalmic merchandise.
G. Population for the purposes of this Code shall be determined
by reference to thle latest F~ederal Census.
7. The terms President ", "LAct and C"Administrator as used
herein mean respectively the President of the United States, Title I
of the National Industrial Recovery Act and the Admrinistrator for
ARIrC~LE III -I'OURS
L, In cities over 200,000 population or the immediate trade area
of such city, no employees, exceptt as hereinafter specified, shall be
permitted to work in excess olf forty (40) hours in any one wreek,
except that an employee may be permitted to work for a mau~xlmum
of fo~rty-eight(4i8) hours per week during any twelve (12) weeks in
any fifty-two (52) week period.l
2. n ctie of200,000 population or less, or the immediate trade
area of such ci no employee shall be! permitted to work in excess
of forty-two (42 hours in any one wpeekt, except that any employee
may be permitted to work for a maxrimum of forty-eighnt (48) hours
per week during any twelve (12) weeks in any fifty-two (52) week
3). In no event shall any employee be permitted to work in excessl
of ten (10) hours in any twen~ty-four (24) hour period, except when
actually engaged in emergency maintenance or emergency repair
work, provided, however, that all such instances of emergency: over-
timne work shall be reported immediately to the Code A~uthority.
4. The maximum hours herein established shall not apply to per-
sons engaged in a managerial, supervisory and/or executive capaeaty,
who are paid thirty-five dollars ($35.00) or more per week, nor to
5. Each employee shall be granted leave of absence with pay for
a periodl equal to the ovTertime worked as permitted ande limited in
Sections 1 and 2 of this Article. Such leave of absence shall be
granted in daily periods, to be agreed upon between employer and
employee, within the calendar year in which th~e overtime occurs,
provided, however, that th~e following holidays, namely, New IYeara
Day, Mlemorial Day, Fourth of July, Labor Day, Thank~sgiving and
Christmas, shall not be considered abs leave of absence under the above
(a.) If any employee voluntarily or involuntarily leaves the em-
ployT of an employer be-fore said employee has been allowed leave
of absence sufficient to compensate said employee for thre overtimre
work, said employee shall be! paid for such overtime based upon the
regular hourly or weekly compensation.
6. No employee shall be permitted~ to work more than six (6) days
in any seven (7) day period.
7. No employer shall knowingly permit any employee to work for
any time which, when added to the time spent- at work for another
employer or employers in this industry a~nd trade, exaceedls the matxi-
moum permitted herein.
1. No employee, except as h~ereinafter specified, shall be paid at
less than sixteen dollars ($16.00) per week of forty (40) hours or
fortly-t~wo (42) hours as provided in this Code.
1 Sections 1 and 2 of this Article eliminated and following inserted in lieu thereoft
" 1. No employee shall be permitted to work in exceess of forty (40) hours in any one
week, except that any employee may be permitted to work for a maximum of forty-eight
(48) hours per week during anly twelve (12) weeks in any fifty-two (52) week period."
(Separagraph 2 (1) of order approving thsCode.)
2. Learners shall` be paid not less thanl eighty per cent (809.1) of
the mlinim-uml wage hierein provided;. provided,~ h~owevel, th~at such
learners thus paid shall be limitedl to a six (6) mIlonthls learning
period, w~hethler served under one or more employers.~ anld prlov'ided
further that such lear~ners thus~ paid shall not exceed in Iunumber the
Estalblishlenlts emlploySingf six or less emp~loyeesc shall be enltitled
to one learner thus paid; es;tablishirments emplloyingf between seven
and tw\enity employees, inclusive, shall be entitled to two le~ai~rnrs,
thus paid; establishmntslt employing more thanr twrent~y emp~loy!rees
shall be entitled to onle add'itio-nal learnler, thus p~aid, for every
twvent~y employees or frasctionl thr~elofr
3. Miessengfrc1s shall be paid no~t less tharn twelve do~llllue ($12.00)
per wee~k for a forty (40) or forty-two (42) hour w-eek~, as provided
in this code.
4. Females per~flr~mingr substantially the same work as male emll-
ployees shall receive the same r~ate of pay as male emp~loytee;.
5. This Article establlishes mlinimlum ra~tes of pay which shllnl
applyI, irrespective of whether an em~ploy5ee is azctulallyl compllensated
on timle-rate, piece-or~k or other basis.
6. AP personal whose earning capacity is limiited~ beenslice of age,
phys'ied or mental handlicap mayl be emiployed on lighit work~l at a
wag~e below the m1inimuml~ estab~lished by a Code,~ if the emplloyecr
obtains :from the state authority, d~esignaIted by the UnitedZ States.'
Departm'lent of Labor a c~ertificazte authorizing such person's employ-
mnent. at suchl wages and for uchl hours as shall be stalted in the
cert~ifica~te. Eachi employer shall file monthly w~ith~ the Codle Authlor-
ity a list of all sulch persons emlployed by him. showing the wag~es
paid to, and the maximum hours of workr for stich emlployes.
7. For employees who are paid lthirty-five dollars ($35.00) a week
or less, no hlourly, daily or w-eeklly rates of pay shall be less thann
such rates existing as of June 16, 19:33; and( no emlployee shaill be
paid n w\age raNte which will yield a, less w~age for the shorter fuill
time welek of forty (40) or forty-two (42) hours hlerein estalblished~r
t~hanl could be earlied for tihe same class of wTork for' thle longer. fuill
time ~eeki existing as of Junle 16, 1933. Wag~e increas~nes fo~r such1
employees established und-er P.R.A. shall at least be maintainied.
1. N'o person- undter eighteen (18) years of age shiall be emplloyed
in the Industry and2 Trade except office boys, office girls and messen-
gers. No- person ulnerlI siixteen (16) years~ of age shall be emnployedl
in thle Industry andi Trade in anly capneity. In any state any em-
ployer shall be deemed to have complied with this provision as to
age if hie shall have on file a certificate or permit, duly signedl by the
authority in su~ch state empowreredl to issue employment or age
certificates or permiits showTing thlat the emiploy~ee is of thle
2. (a) Employees shall hiave the right to organize andl bargain
collectively through representatives of their owni choosing, and
shall be fr~ee from the interference, restraint or coercion of employers
of labor, or their agents in the designation of such re prese ntat i ves,
or in1 cslf-o~rganizatfioln or in other conce~tedl act~ivities f~or t~he p~ur-
pose of collective b~alrgainin or other mutual aid or protection.
(b) NJo employee andi no one sEteeking employ mnent shall bEe re-
quired as a corndition of emnployment to join any company umion
or to refrain from joining, orgamizmg~ orn assisting a labor orgamma-L
tion of his owcn choosing, and
(c) Emplo~er~s shall comply with the maximum hours of labor,
minimllum1 rates of pay, andi other ondlitions of empllloymn~n t approved
or pr1escribedt by the Pres~ident.
3. No6 p~ro\ision in this Code! shall supersede any' State or Fed-
e~ral lw~ woh~ich ;rlrimpose on empnloye)\r.< more~ str~ing5ent r~equiremlents
uls to age of emplol~y~ees, wages, hours of work, or as to safety, health,
sanitary or general w\orking~ cornditions, or insurance or fire pr1otec-
tion, than. are im~po~sed by this Codel.
4. No employer shall reclassify- employees or dul~ties of orcupal-,
- tions perflo~~rmed, or engage in any otheril Ibter1fuge, so as to defeat
the purposes or provisiolns of the A\ct or of this Codte.
5i. AllI employers shall post and k~eep pos,.tedt copies of ithis Code
in conspicuous places neces iblle to all employees. Every mnember~ of
the Indlustry annd Trade shall comply with all rules and reg~ulations
relative to the poeting of prol-visions of tcodes- of fair c~ompletition
which may fromn time to time be prescrl'~~ ibe by~ the Admitnillstrator.
-6. ]Every employers shall prov,~idep for the safety a7nd health of
empllloyee's during the hours and at the places of their employment.~n
Sctandardsd for safety and~- health. shall be submittedl bly ~the Code?
Authlorlty to the Admninlistrator, 1 within six (6) nll,:ths~ a f ter th~e
effrective date of the Cole.
ARTCLE V][-~I~II----RAnxIOu no
Organization and ConstItution.
1. A Code Authority is hereby etabt~llished~~ consisting of nine (0)
membersf)~i.- to be .selrc~ted by the members of the Industry and(. Tradef
th11rlrugh a fair method of selection appric-\oved by the Aha~tin~istl'f rato.
In addition to membership~li as cbove provided'I, there mayl! be~ thrlEe
(3) membnlers, wvith~out vorte~, to be known as Adlcminiist r t ior:n membterx,,
to be appointed byr the Adm!lilitrat ortC1 to -erVIe for Sulch terms as he
2. Each trade or indnll.-trial assarl.Tiationl, d~ire flytS or ind~irltly par'-
ticipating~ in the .seketrion~ or ac-tiv-ities of the Code Authority, shall
()impose'( n~o ineqcuitabll e restriction on mrmbership~li~, aInd- shall
(2) sbml.,~it to th~e Admrinistrat~ ltorll true cieS of its artl'iCls of assciri-
aztion, by-laws, regulations, andc any amndmentslc~li when71~I made thcreto,
t oge~ther1 w\ithl such~ other i I fnforma~t io(n as to mremnbership, orga nii zat ion
andt net i vit ie as the Almin istr~clractomay d~reem nccets-ary3 to effect uate
the purpose"" of the Act.
3. I~n ord~cer that the Code Authority .-hall at all timescr be trully
representative of the indul~stry3 and2 trade and in other recspects comply
with the pr1ovirions of the Act, the A~dmnisltra-torl may pr~escribe such
hear~ilgr s as hes may deem proper; and, thereafter, if he shall .find~
tha~t the Code Auithlority~ is no~t truly: rep rese native or- dloes niot in
o~ther respects compnlly wvith the provisions of the Act, my requir~e
an appropr,'iate mo~dification of the Code Au~rthority.
4. Nothing contained in this Cote shall co-nstitulte the members
ofE the C6ode Authority partCners for a7ny I~purpoe. Nor shall uny
mIemiber of the Code Aulthority b~e liab~le in anyv mnnenr to anyone for
any act of any other member, oiliicer, agent or employees of ~the Code
Authority. Nor shall any memnber ofl the Code Autl.hor~it.y, e~xercjising
r~easonab~le d~iligence in the condutlct o~f his duties herander~ler be lia~ble
to anyone! for any action or omission to act underll this Code, exceept
fo~r his o~wn willful mis-feasance! or non-feasa~nce.
5. Ilf th A;dmlinist~ra~tor shall determine that any actionl of a
Codje Authority or anly agncy..~ thereof mayLS bet unlfair or unljust. or
cotary- to the public inltererst, the Ad~cministra~tor may reqirc~ie thant
such actions be suspended to afford an opp>ortunity for invesitigatio
of the merits of sulch action anda further con~sid:er!tioln by such C'od~e
Auithority or agency pendingr final action whichl shall nlot be effectiv-e
unlessth Admilnistrantor a~pr~oves or unless he shall fail to dis-
approve after thirty (30!) dasys' noticej to him of intention to proceed
with sucht actionl in its oriigi~nl or modified form.
S6. Subject. to suchl rulej andl regulations as mnay beissuedl by thre
Administrator, the Codei Auth-ority shall havei the following~ powers
andl duties, in addition to those n~utho~rizedl by other p!ovisions of
(a,) To insure. the exrecution of the provisions of this Cod7e and
to provide for the Comrplianle of the indu~lstr~y and trade with. the
provisiions of the Atct.
(b) T~o adlopt byrlaws and( rules andi r~egu~lations for its pr~ocedur~lre.
(c) To obtaina from mlemnbers of the indulst~ry andl tra;e such
informantiol anid repocrtrs as are required for thei adm!iinistratiojn of
thle Cod`e. In addition to information requiredi to be subm~nitted to
the C~ode Authorit, mlemblers of th;e indcustrly aIndl trade subject to
thlis Co~de shall fulrnish uchl statistical in~frr~mation as the Adm~lin-
.istra~tor miay deemn necessary for, t~he purposes recit.ed- in Sec~tionl 3
(a) of the ALct to such Federanl and( S~t~ate agencies as he mayS desig-
nate; provided that nothing in thiis Code shaill relieve any member
of the industry and~ trade of anly existing oblligationsf to furnishl
re'orts to any3~ Gov'r~nmnt agency. No(: indiv\idual report shanll
be dlisic;lsedl to any other member of thle ind~ustry5 and( tlrade or
any other party except to such Go-er~nmnlc talI agencies as maly be
dlir~eclted by the Admlninistrator.
(d) To effe'ctuate. further th policies of th~e Act, the Code AIu-
thiority shall act as a spinning and fair practice agency' forl the
optical whlolesale industryl~ and trade and- mayv fr~oml time to timne
present to th~e Administratoo r reconunendaltions~m basedl on conditiionis
in thle indiustry~-~ as thiey ma~y dlevelop wvhichl will tende to priomloter the
operation of th~is Code and the p~olicyy of the Act.
(e)~ If at any~ timel thle C'ode Aluthor~ity feels thnt, any prlov'isIonI
of this C'odis being: violated by any memlber of the indlusitry and!
trade, it may requiire Ireports to be submritted7 by such memiiber, cer-
tified by somne imnpar~til age?ncy and person ap~provedl by' the Code
Authlorltyy andl the memlber of tlhe indutr and trad~e, pr1ovided sulchl
mlemberr of the industry and ~r~ade agrees to submiiit sulch replor~ts.
(f) To use such tl~rade assciatio nls and other agencies as it eemls
proper for thle carrying out of aniy of its activities providedr for
herein, pronvidedr that not~hing h Iereini shlnl relieve the Codel Authilority
of its du~ties or responsibilitie~s under this Codet and that exich trade
asscl~iationsi and agencies shall at all times be subject to, and comply
with, thle pr~ovisions hereof.
(g) TIo make recommendation onls to the Aidministratfor for the co-
ordlina~tion of th~e aditnir l!stratin of thlis Code with such other
c~ode~, if any, as may be related to the tradec.
(lI); (1) It being found necessaryT to support the admninistration
of this Codle, in order to effectuate the policy of thne Act and to
maintains the tandardstf of fair comnpetition- establishled hereunder,
the Codle Authority is authorc~ized::
(a) To incur such reasonable obligations as are nece~ssary
and proper for the foregoing purposes atnd to meet such obli-
gations out of- funds which shall be held in trust for the pur-
powsF of thie Code and raised ai hereinafter provided;
(b) To submit to the Administrator for his approval, sub-
ject to such notice and opportunity to be heard as he my13 deeml
1. An 1titeizedc budget of its estimated expenhes for the fore-
golmg; ptr~poses, and
2. A~n equiitable? basis upon which the funds necessary to sup-
port such budget shall be contr~ibu~tedt by all members of th'fe
Indlustry and Trade entitled to the benefits seemirlng from the
mlaintenanceci of such staltnar~ds, and th~e administen;tion. thereof.
(c) Anfter such budget and b~asis of contribution have been
approved by the Aldministrator, to dctermiine? and collect eqrui-
table contributions as above s~e forth, and to that end, if neces-
sary, to inst-itulte legal proceedings th~!ereforr in its ow~n name.
(2) Each m~emnber olf the industry and trade shall be liable for his
or its eqyuitable contribution to the expernsec; of the maninttenancei of
the Code Authority as hereinabove provided. Only membellclrs of the
industry alnd trade complying with t-he Code and mlakingr slc~h c~on-
tribultion shall be entitlrl7 to partic~ipate in the selection of the
Iil3inem cr of thte Code Authcrity or to rece~tive the benefits of its
volluntary ne..tivities or to make user of anly N.R.A. insigma:.
(i) TIlo coop~erate with the Adm;~ini tratorl in regculatingS the use of
any N.R.A. insignia solely by thlose members of~ the industry and
trade who have assented to, and are complying with, this Codle.
(j) To recommend to the Adlministrator any action or measure
deem~ed adlvi-blec includingiir further fair tradle practices provisions
to gover-1n members of the industr-y and tlrade in their reclatio-ns
with ea;chl other or with other trnres or inlustr~ies; measures for
industrial planning, and stab~ilizati~n. of employment, andt including
mlodi ficalt ions of this Code which shall bec~omle effective as par It here'of
upon approval by the Administrator af~ter such. notice and heanringa
as he mlay sptc~ify.
(k) T'o appoint a Trade Practice Committee w~hichi shall meet
w~ithl the Trade Practice Committees appointed under~l such other
:rcodes as may be r~elatedl to the indul~stry and trade for th~e purpose
of formlall~itingb fair trade pr~actices tt4ro goven the reint~ion-;hip be-
tween employers undrlcll this code and undelrl such other codes to thle
end that such fair tradetl pr~c~tices may be proposed to the Atdmninis-
tr~ator as amendmienlts to this code and~ such other codes.
(1) To provide facilities for arbitration, and subject to the ap-
proal of the Administrator, to prescribe rules of procedure and
rules to effect compliance with awards and determination.2
i. Fiailulre of any member of th~e industry and trade to furnish any
of the information required under this Code shall c~onstitu~te a
vTiolation of the Code.
(1) Filing price lists.-(a) Every mlembe~r of the indusltryI nd
trae sal fiewith~in t~hirtyv (30) days from the effective dIate of
ments as set out in sub-sections (1) and (2) hereof.
(1) A list of his prices whr~ich shall become effective immediately
ulpon filing. Copies of said price lists, and any revision th~lereof,
shall bear the dante on which such list or lists are effective and shanll
be made available immediately to all interestedl persons including
mebers of the industry and trade and their customers. M~ember~s
of the industry and trade may file revisions of their price lists with
the Code Authority at any- timne.
~(2) A written statement specifying that he elects to follow a des-
ignated standard price list or designated lists previously filled wFit'h
the Secretary of C~ode Authority. Price lists adopted by m~em-bers
wVho do not file their own price list mlust be3 follow-ed complete; all
extra charges, changes mn price, and the like appearing on the adopted
price list must be observed by thre member a~dopt~ing the list. M~em-
bers of the industry and trade, adopting a price list pursuant to this
paragraph, are bound by the :revisions in the prices lists so adloptedl
unless they wIithdraw their election under this paragraph anrd file! a
complete price list or lists of their own.
(b) The net prices (after deduction, of all discounts, allowances,
etc.) of products listed on any price list filed or adolptedl by anly
member of the industry and trade shall, in every instance, represent
at least the cost of the member filing or adopting the same.
(2) Cost accounting.-(a) The standards of fair competition for
the midustry with reference to pricing practices are declared to be
as follows (for definition of terms see subsection (4) :
1. T~he principle.--(i) Destructiv~e price cutting is an unfair
method of competition and is :forbidden at all times, irrespective of
the existence of an emergency;
(ii) W~hen no declared emnergency exists as to any given product
there is to be no fixed minimum basis for p rices but it is intended
that sound cost estimating methods should b~e used;
(iii) WVhen an emergency exists, as to any giv~en prooduct, sale
below the lowest reasonable cost of such product, in violation o~f sub-
section (3) h'ereof, is forbidden.
(2) Mnormal provuisn (cosrt estimating methods~).-The Code Au-
thority shall cause to be formulated methods of accounting and cost
findng andj/or estimatinga capable of use by all members of the in-
dustry and trade and shall submit suchl methods to the Admiinistrator
= Changed to read as follows: "(1) To provide for facilities for arbitration, other
than in labor disputes, and subject to the approval of the Administrator, to prescribe
rules of procedure and rules to effect compliance with awards and determination."' see
paragraph 2 (2) of order approv~ing this Code.
for review and p~o~ssible, disapproval. Full details and instructions
conC~l~crnn such naltkrcds Sshll be made available to all members of
the industry and trade and to the A~dmlinistrantor and thler~eafter it
is intended that all members should utilize the pr~inciples of such
(3) ELimergencyJ pirovirls;io (lowoest reasonable cost).-W-Vhenz an
emergency exists, the Code Authiority may causeB an impartial agency
to investigate costs an~d to determine the lowest reasonable cost o
the product affected by the emlerg~ency.. Such determination shall
exclude all cost celements set forth in and shall be in all respects
subject to such rules and regulations as may be issued by the Adlmin-
istrator andt subject to his approval or modification after such notice
and opportunity to be heard as he may prescri'be. T'he Code Au-
thority or the ~Administrator may, from time to time, cause such
determinations to be reviewedc or reconsidered and appropriate action
(4) Deffnitions.-An "L Emergrency "' exists wh-enever the Admninis-
trator determines that destructive price cutting is rendering inef-
fective or seriously endangering the maintenance of the provisions of
"(Destructive price culttin~g"
(i) Wlihen, no emergency exists, the terms shall have the meaning
declared in rules and regulations promulgated by the Adminlistrator
on r'econull~t~i cnenaton of the Code Authority or on his own motion;
(ii) W~hen an emergency exists, the term shall mean any sale in
violation of subsection (3) hereof ;
(iii) It shall be an absolute defense to any charge of destructive
price cutting, if an impartial agency, designated or ap~proved by the
Atdmlinistrator, shall finrd,
(aat) Trhat the price complained of is justified b;y existing completi-
tion, evidence of whiich has been reported to the Code Authlority;
(bb) That the pr:ice complained of is justified as a method of dis-
posal of dropped lines or seconds, or
(cc) W~hen nlo declared emergency exists, that the member charged
with letructive price cutting has in good faith endeavored to make
proper use of the announced cost estimasting methods.
;3. Sales B2eloso Cost or ~Prices Listed.-(-a) No member of the inJ-
dustry and trade shall sell, or offer to sell, at prices lower than. those
Ep"'cified in price lists duly filed or adopted and/or sell, or offer to
sell, below cost; except that obsolete, discontinued lines or surplus
stocks may be disposedc of, or inventory m~ay be converted, into cash
to meet pre;ingr financial needs, at such prices as are necessary to
accomplish these purposes. Such stocks shall not be sold until
fifteen (15) days after notice thereof has been filed with the Code
Authority, togetherl with an itemized list of rthe merchandise to be
(1) The cost of every mrem~ber of thre Optical Wiholesale Industry
and Trade shall be calrculatedl solely on the basis of the wh~olesale
bulsiless condC'ucted~: by s-uch member, whether or not such member
is also e~ngaged in the Optical Manufacturing Indlustry and/or the
Optiedl Retail Trade. The fact that a mliember engages in either the
Optical nlan~ufacturingl Industry or the Optical R~etail Trade at a
profit shall be wholly immaterial to any compqlaint that a mlember
of the Optical Wholesale Trade has violated this article of the Code.
4. Price Protection.---(a) I~t shall be an unfair trade. practice for
an member of the industryy and trade to guarantee the delivery of
merchandiise, or to deliver merchandise, at prices other than those
that are in effect in the printed list or lists filed by tlhe mem-ber, or
designatedl list or lists adopted by the mlember, on file with. the Code
Authlorit~y at the time thne delivery is made.
5. Discomretls.-(a) The Code Authority, with the appr'oval of
the Administrator, may fromt time to time classify optical retailers
for the purpose of establishing maximum trade d~isc~ounlts which may
be granted by members of the Industry and TIrad~e to such optical
6. Di~spets~ing for Oculists and Optometrists.--(a) Where a memb-
berr of the Industry and Trade dlispenses glasses dl~iec~tly to a cus-
tomer's patient for th~e account of a, customer he must furnish said
customer's patient with a printed statement wpihich shall indicate
plainly to the patient that the sale, replacing or repairing of glasses
Is being made by the wPholesaler for the prescriber and that thne priice
charged is the retail price charged as set by the prescriber. A charges:
shall be m~ade byT a member of the Industry and Trade against the
prescriber for such service.
(b) Any transaction involving secret rebates is an unfair trade
ARTICr VTIII-CREDIT CONTROL
1. Telrms.--(a) Except as provided in Article XT, Section 14
thereof, withl respect to the sale of olphthalmological and shop equip-
ment on deferred payments, the maximum terms, which shall be
given by any member of the Optical W'holesale Industry and T~rade,
shall be two percent (rZc) cash premium, if remittance is dated and
mailed by the tenth (10th) of the month following date of invoice,
when the account is due; there after, the net price must be paidf.
Terms shall be stated on all invoices.
". C'lredit informati'on..-(a) The Code: Authority is hereby author-
ized to establish a Credit, Bureaul to act. as the agency of t~he Code
Authority in the dissemination of credit information throughout the
Industryr. Information so dlisseminatedl by it, and any other confi-
dential credit information, shall not be revealed by any member of
the Optical Wrholesale Indurstry and Trade to any customer or to
anyone not entitledl thereto.
3. Pnat-due accouts.-(a) Interest at the rate of sixpercent (6qo)
per annum shall be charged on balances sixty (60) das or more
past due. the interest to commlence~ from the time whnthe balance
became due. Such balance shall be, reported promptly to the Credit
Bureau in accordance with thee Credit Bureau s recording system and
on the forms provided by said Bureute nut au. taesal eus
(1) Every member of h nutyadtad hl eus
promissory note for such balances, together with the interest rate
a Eliminated. (Bee par. 2 (3) of order approving this Code.)
AaT~crae I~X--QUB Lurvt MAINTE~NANCE
1. In view of the importance of the high quality of ophthalmic
mlerchandise to the preservation and improvement of eyesight, the
Code Ajuthlority may from time to time promulgate rules and re~gula-
tions specifying andl defining the quality- of ophthalmic merchandise
which may be sold by members of the Optical WIholesale Industry
and Trad~e. Such rules and regrulations, when approved by the
Administrator, shall have th~e same force and effect as the provisions
of this Code.
2. No member of th~e industry and trade shall knowingly purchase
ophthalmic merchandise for resalle which, shall be manufactured
wholly or in part under circumstances which violate the provisions
of any such code or codes of fair competition under the Ncational
Industrial Recov~ery Atct as may, from time to time, be in force with
respect to the manufacture of such mnerchandise.
AaT1Cran X;-UCNFAIR CRADE PCRACTICES
1. No member of the industry and trade shall publish advertis-
ing (whether printed, radio, display or of any other nature) which
is misleading or inaccurate in any material particular, nor shall. any
member in any wmay misrepresent any goods (including, but without
liiitatiorn, its use, trade-malrkgrade, quality, quantity, origin, size,
substance, character, nature, fnh, material, content or preparation)
or credit terms, values, policies, services or thne nature or form of the
2. No m-emnber of the industry and trade shall publish any state-
ment, advertisement or representation which falsely lays claims to a
policy, or continuing practice of generally underselling competitors.
3. No member of th~e industry and trade shall publish advertising,
which refers inaccurately in any material particular to anly com-
petito-rs or their goods, prices, values, credit terms, policies or
4. No member of the industry and trade shall give, permit to be
give, r directly offer to give, anything of value for the purpose
ofifuencing 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, without the knowledge of such employer, principal or party.
This provision shall not be construed to prohibit free and general
distribution of articles commnonly used for advertising except so far
as such. articles are actually used for commercial bribery as herein-
5. No member of the industry and trade shall operate a separate
optical business whether wholesale or retail; or own or control, eith-er
by stock owner~ship or otherwise, directly or indirectly, any such
separate optical business, except, (a) where such separate business
is operating under the same firm or trade name as that of th~e member
owning, operating or controlling the same, or under a name which
clearly discloses the fact of such operation, ownership or control;
or (b}r where full details of the operation, ownership or control of
such separate business have been previously ~filed with the Secretalry
of the Code Authority by the member owning, operating or con-
troling suchr separate buxsme~ss, and such informa~tiorn shall be avail-
able to any .interesitedl part.
6. No member of the industry and trale, shall advertise in pro-
grams of meetings, conventions: or social affairs conducted by mem-
bers of societies of the ophthalmic profession.
7. No member of the industry anId trade shall offer or makre any
payment or allowance of a resit, refund, commission, credit, un-
earnedl discount or excess atllowfance, whether in the form of molrney
or otherwise, nor shall a member of the industry and trade offer or
extend to any customer any special serviice or privilege not extendedi
to all customers of the same class, for the purpose of influencing a
8. NTo member of the industry and tr~ade shall make price dis-
criminations between different purchasers or between different lo-
calities which prices are not based on legitimate cost, or sales and
delivery costs. This provisionhwvr hl o pl with respect
to clergy~men, religious and chartable institutions, sals to a nuem-n
ber's employees, or to persons whose inability to pay has been estab-
lishned by a reputable social ser-vice agency.
S9. No mrerinber of the :industry and trade shall bill small quantities
at rates a~pplying to larger quantities, or sell merchandise at qluanltity
.rates and, permilt the buyer to wFithdlraws his purchases from stock
in small quantities according to his current needs exceptt in the case
of customers' printed cases held for delivery with prescription jobs).
10. ~No member of the industryT and trade shall withhold from or
insert in any quotation or invoice any statement. th~at makes it inlac-
curate in any material particular.
11. N~o member of thre industry and trade shall makie excessive
" trade in allowances.
(a) The Code Authority shall, as soon as practicable, issue a
list of such allowances on all ophth~almic equipment and mlachi~nery,
classifying the same by name, type and model. Allowances shall
not be mad-e in excess of the amounts named in this list.
Pending the issuance thereof, and after the issuance thereof, in
the case ojf items not included in such list, no member of the I~ndustry
and Trade shall allow on muerchandlise traded in more than a fair
resale price, minus the cost of reselling on the goods or' equipment
tae Inr trade.'
12. N~o member of the industry and trade shall accept single
frames, mountings ora prts for exchange unless in condition suitable
for return to stock. I suitable and if accepted by the seller they
shall be credited to the purchaser at not maore~ than the price at
which purchased and items furnished in exchange shall be charged
at the prevailhng prescription price.
Subsection (a) amended to read as follows:
"(a) The Gode Authority ball, subject to the Approval of the Administrator, as soon
as practicable, issue a list of such allowances on all ophthalmic equipment and machinery,
classifigng the same by name, type and model. Allowances shall not be made in excess
of the amounts named in this I~st.
Pending the issuance thereof, and after the Issuance thereof, in the case of Items not
included in such lst, no member lof the industry and trade shall allow on merchandise
trade in more than a fair resale price, minue the cost of reselling on the goods or equip.
ment taken in trade." (See par. 2 (4) of order approving this Code.)
(a) Lenses, fitting sets or samples are not subject to exchange or
return for credit except for defects of manufacture, delays or errors
in filling orders.
13. Nlo member of the industry and trade shall ship merchandise,
supplies, samples or fitting cases on consignment, except that 10r-
gnlettes, oxfords and artificial eyes may be shipped on consignment,
provided, they are not subject to return 'after fifteen (5)days, ex-i
cept that for legiiaecei esn hr uhmrhniei
returned after fifteen days, the complete circumstances shall be re-
ported to the Code Aiuthority, and except that ophthalmolog~ical in.-
strumellnts and equipmellnt may be consigned for demonstration and
trial for a period not to exceed thirty (30) day~s.
14. The Code Authority may establish a uniform contract for the
sale of opthalmological and shop equipment on a deferred paymennt
plan and, when such contract is approved by the Administrator, all
members of the Industry and T'rade shall use the same.
15. NPao member of the industry and trade shall deliberately in-
fringoe on, or evade patients or imitate trade marks or trade names
with intent to mislead or deceive purchasers.
ARTICLE XI EvBsIon
1. No member of the industry anld trade shall engage in any subter-
fuge to defeat the purposes or provisions of the Act or of this Code.
ARTICLE X~II -MOMIFICATION
1.. Thlis Code and all the provisions thereof are expressly made! sub-
ject to the right of the President, in accordance yith the provisions
of sub~section (b) of Section 10 of the Act, from tune to time to can-
cel or modify anly order, approval, license, rule or regulation issued
under said Act.
2. Such. of the provisions of this Code as are not required to be
included herein by the Act may, with the approval of the Adminis-
trator, b~e modified or eliminated in such. manner as m~ay- be indi-
cated by the0 needs of the public, by changes in circumstances, or by
1. No provision of this Code shall be so applied as to permit
monopolies or monopolistic practices, or to eliminate, oppress or dis-
criminate against small enterprises.
ARTICLE 11Y--FlRICEII INCREASES
1. Whereas the policy of the Act to increase real prhsn
power will be made more difficult of consummation prices o
goods and services increase as rapidly as wages, it is rcgie
that price increases except such as m~ay be required to meeting
vidual cost should be delayed, but when made such increases should
so far as possible, be limited to actual additional increases in the
ARTICLE XV--EFFECTIVE DMP
This Code shall become ejffec~tivPe on the second M~onday rafter its
approval by the President.
Approved Code? No. 448.
Registry No. 1031-3-03.
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