Registry No. 1702--19
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
1MOUNTERS AND FINISHERS
UJNIV. OF Fbr~~ OURPA
The Code for the Mounters and Finishers Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administrationn
as applying to this Industry
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
AS SUBMITTED ON AUGUST 28, 1933
Digitizedl by the Internet Archive
1n 2011 with fundllng Iromn
University of Florida, George A. Srnathers Libraries with support fro17 LYRASIS and6 Ihe Sloan Foundation
hlipl: www~v.irchlive.org/details/proposedcode of82ui
CODE O1F FAIR COMPETITION SUBMITTED BY T~HE ASSO-
CIATION OF EMOUNVTIERS AND FINISHERS, INC.
ARTICLE I--DESCRIPTION OF THE: BUSINESS
The Association of Mounters and Finishers, Inc., represents that
branch of the Graphic Arts industry engaged in the business of
montlning,~ and3/or die ult~t~ing and/or easeling and/or finishinzlg of all
types of mounted cardboard window and other advertising displays.
To eflfectuate the policy of T'itle! I of the National Industrial Re-
covery- Act, during the period of emergency, by increasing e-mploy-
me~nt~, establishing fair and adequate wages, effecting the necessary
reduction in hours of employgme-nt, improving the standards of labor,
eliminating competitive practices destructive to the best interests of
the public, employees, and employers, relieving thie disastrous effects
of overcapacity, restoring the income of .the enterprises within the
industry to levels wNhich will make it possible to pay such prescribed
and adequate wages and avoid the further depletion and destruction
of capital assets, the following provisions are established as a code of
fair competition for the Association of Mounters anzd Fliniishers, Inc.
Membership in the Association, of Mounters a~nd F'inishers, Inlc.,
and participation in this code and any subsequent revision of or addi-
tion to, shall be open to anyg member of the! mdustry. There are no
initiation or entrance fees and no restrictions on the qualifications for
membership, other than each member agrees to abide by the pro-
visions of the code, the Constitution and ]By-Laws of the Associa-
tion, the code of uniform terms and conditions for quotations anzd
sales, and be responsible for~his proportionate share of the expense of
the Association necessary for the administration of the code and any
other activities whlich1 may be agreed upon by a majority vote of the
A. The Association of M/ounters and Finisher~s, Inc., is hereby
designated as the agency for administering and supervising the per-
formance of the provisions of this code by the members of thre
B. The a.dministrantors of this code shall be the .Associ~t~ion of
Mfount.ers a~nd Finrishers, Inc. TIhe B3usiness Mlanager of the Asso-
ciat.ion shall act as the unrestricted agent of thze Association and
hav-e the right. to maike such nudit~s of records, collect such reports,
statistics, andl other information as mayT be necessary to carry out
the provisions of this code., All such data are to be kept confidetntinI,
and they shall not be divulged to any member except in summary
but shall be given to the President of the United States upon request
or t supor th prvisionzs of this code. The Business M~anager of
the Association shall~th also make such2 investigations and shall fie
such complaints as are necessary under the provisions of this code.
C. T~he Board of Directors of the Association shall supervise
the activities of the Associat~ion under ths act and shall be directly
responsible for the administrationn of the provisions of this code.
The~ Board of Directors may delegate this authority to either the
Business ManJager of the Association or to an ]Executive Committee
of their ownJ choosing.
D. The Board of~ Directors or their dele~ga~ted representatives
together wvith such individuals as may be named by the President
of thie United States shall constitute: the Planning and Advisory
Committee of the industry.
E. Violations by any member of the Association, or by any business
entity eligible to membership in the Association, of the provisions
of this code, is and shall be! an unfair method of competition, and as
such, subject to the penalties provided b the Recovery Act.
F'or purposes of self-government ofconditions not deemed
to warrant invoking the aid and assistance of the authorities and
penalties prescribed inl the Recov~ery Act, a majority of the parties
signIatory hereto may fromn time to time establish taxes and/or
penalties and provision for the payment thereof, for violation of
In the event the Administ~rator of this code deems violations to be
of such, m~omrent as to justify the attention of the authorities and
penalties prescribed in the R~ecoveryT Act, the Admlinistrator or
Business Manager of the Associationl shall maker complain and invoke
the aid and assistance of the authorities anad penalties prescribed in
the Recov7ery Act.
ARTICLE V-L-I~ABOR ]Pnovisions
Gener~al.--A. A~s provided in Section 7 (a) of Title 1 of the National
Recovery Act, the following provisions are conditions of this code:
1. That employees shall have the right to organize and bargain
collectively through representativ-es of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in thre designation of such representatives or
in self-organization or in other concerted activities for the purposes
of collective bargaining or other mnut~ual aid or protection.
2. That no employee and no one seeking employment shall be
required as a condition of employment to join, any company union
ofhso hoigor to refrain fromn joiningg~ org n izing or assisting a labor organization
3. That emlployers shall comply wnith the maximlum hours of labor,
mlinimluml rates of pay, and other conditions of employment approved
or prescribed by the Presidlent.
B. It is clearly- understood that the foregroing paragraph dloes not
imlparir in any particular the: constitutional r~ights of the employees
and employer to bargain individually or collectively as mayR be mlu-
tually~ satisfactory to them; nor dloes it ;impa~ir the jintn right of em-
ployer and emlploy-ee to operate an open shop.
C. Nothing in this code is to prevent the selection, retention, and
advancement. of employees on thle basis of their :individual merit,
wfithoutl regard to their affiliation or nonaffiliat.ion writh any labor
D. No employer in the industry shall emlployv an person under the
age of sixteen (16) years.
Hun,rs of' Ilfor.-A.L It is agreed that the maxrim~um number of work-
ing hours for all employees in the industry), including office help, shall
not bej in excess of forty (40) hours in any one we~ek, and that the
working days in the week shall be limited to five, Monday to F~ridayS,
inclusivee. N\o est~ablishmlent in the industry shall open for the
transaction of any business or any malnulfacturing: operation on Satur-
day or Sunday.
B B. Repair crews, machinists, and elect~ricians are excepted from
this p'rovision when nIece~ssary to keep the plant inl operation. This
provision shall not. apply to execuitives, supervising staffs, wa~tchmnen,
C. When necessary, due to the special character of a~ny muec'hanical
work, overtime shall be pe~rmitted, but no employees performing
mechanical operations shall work more than eight hours over~timle
inl any one week, and no employee shall wuorkr more than 1,040 hours
in any consecutive 26 weeks, including overtime.
Labor Rates.-A. It is agreed that the mninimlum rates of pay for the
industry shall be as follows.
M/3ale H~elp, forty (40) cents per hour.
Femlale H~elp, thirty-five (35) cents per hour.
B3. As soon as practicable, a job classification for thre industry~ shall
be worked out and minimum rates for each job classification shall be
C. WhFrere work is performed on other thanr hourly rates, such as
piecework, etc., it is agreed that such rates shall also be increased
proportionately so th~at the same earnings can be secured in the
forty-hour week as are now secured under the present hours of work
and that the samae mninimlum rates of pay petr hour shall apply to
this classification of labor as have been established for hourly
D. Hours workedd in, excess of the maximum of forty (40) in any
one week by employees who are on hourly rates shall be paid at the
rate of time and one third.
E. No home work shall be allowed. All labor shall be performed
in the member's plant, but no wHorkr shall be done in any unsanitary
buildings or buildings -unsafe on account of fire risks.
AnaIcLE VI--PRODUCTION AND CAPACITY
A. Until such time as the demand for t~he products of the industry
cannot be adequately met by the~ fullest possible use of the existing
equipment, and until the code is amended to permit it, none of the
members of the code shall install any additional equipment except
as such equipment is needed to replace worn or obsolete equipment.
Nothing in the f~oregoinga, however, is to be construed as prohibiting
improvements from being made on present equipment. ; No member
may establish a factory branch for the purpose of mounting, die
c-utting, and fiising in a~ny city or withi the radius of 100 miles
of such city where a factory of a present member is now located.
B. It is recommended. that thie President of the United States
require that, prior to the purchase and installation of productive
machinery by persons (whether individuals, copartnerships, or cor-
porations) naot presently engaged inl this industry, such persons shall
be required to secure from the President, certificates that such pur-
chase or installation is consistent with effectuating the policy of the
National Industrial Recovery Act during the emergency period stated
C. WP~e agree that so long as the industry is operating below 80%7
of capacity (the present level is under 40% of actual capacity),
that the pcricple of sharing business equitably between the various
plants in. the industry must be recognized. To carry out this prin-
ciple we agree that the Businesss M~anager of the Association shall
]havre the right to assign to each active factor in the industry a certain
percentage of the available busiess to which it is entitled, this per-
centage giving due consideration to the physical capacity, past per-
formaances anld any other factors which may be felt to have a bearing
on, the equitableness of each position, recognizing to a reasonable
extentt the greater diffiulties met by the smaller plants working on a
D. If any member finds itself unwilling to accept the percentage of
business which has beenz assigned to it by the Business 1Manager;
the question at issue shall be referred to a Board of Arbitration, one
member of which shall be appointed by the Board of Directors, one
member by- the comapany whch findss itself unilin to accept the
position assigned byT the Business Maonager, a~nd the third member
appointed by the two arbitrators provided for above. The findings
of this Arbitration Board shall be final and binding upon both parties.
E. Each member of thae Association adgre'e"s~ todg limi pits salesan
production to its own relative position as de~rmnebytepicle
ARTICLE 1I--TRAD)E PRACTICES
A. To carry out the provisions as ou tlined above, anld also to secure
the objectives as set forth in the National Industrial Recovery Act,
it becomes necessary to conduct our industry in an orderly manner
and to maintain fair competitive practices which will not be inimical
to thie interests of the public, th employer or th employees. It is
agreed h~at the participants in thi code sh abide by and live up
to the Constit~ution and By-L~aws of the Assoc~iation of M~ounters and
Finishers, Inc., and the codes of trade practices which may be adopted
fromt time to t~imec by the me.jority vote of the Association.
Bi. It is agreed that every member of the Association shall use an
adequate cost system and one which will be prescribed by the Associa-
tion. Basic principles for comparative and uniform cost accounting
will be adopted by the Association as soon as is practicable, and when
adopted will be used as a basis for determlining miuniu selling prices
for the products of t~he industry. Pending the adoption of such uni-
formn cost accountig principles, t~he minimum selling prices of the
principal products of the industry shall be based on the present know-
ledge of costs.
C. fIt shall be an unfair method of competition for any person in
this industry to sell his products belowy actual cost. In the absence
of correct and reliable information as to costs each person shall con-
sider as his cost the cost found by- the Business M~anager to represent
average indulstrly costs and published as such. All concerns in the
industry shall Yfurnish to the Business Mfanager in confidence all
essential information which may be required pertaining to the deter-
mination of their costs according to a formula to be furnished by him;
and such information shall be subject to verification.
The quotation by anly m~anufacturer of anly price lower or higher
than the price based upon actual costs, or the sale of atny commaodity
at a price lower or higher than that based upon actual costs shall
constitute an unfair trade practice.
D. T'o secure the effective general distribution of business in ac-
cordance wIith. the principles outlined in Article V~I, Section BE, it is
agreed that in the event that any member becomes materially out
of line with his recognized position in the industry that the Board
of Directors, through the Business MPanager, may direct a course of
procedure to be followed by such companies in order to bring about
an equitable distribution of the available business, and it is agreed
that this course of action will be followed by each member so affected.
E. It is agreed that each member of the industry will submit to
the ]Business Manager at thae end of each y-ear a balance sheet and
profit and loss statement, certified by an officer of the company, so
thaat a combined balance sheet and profit and loss statement of the
industry masy be submitted to the President of the Unhited States, as
a check on the prices receiv-ed and as an indication. of thze industry
to be reasonable in its purpose.
F'. Any secret rebate or credit, extra cash discount, the shipping of
a greater quantity of product than is billed, or any other secret
practice which tends to lower the recognized price on the part of any
manufacturer or his agent is hereby condemned and shall constitute
an unfair trade practice.
G. It is agreed that the wilful interference by any person, firm,
corporation, or association, by any means or device whatsoever, with
any existing~ contract or order between a seller anld a purchaser, in or
about the production, manufacture, transportation, purchase or sale
of anyT product handled by the industry, or the performance of anly
contractual duty or service connected therewcith, such interference
being for the purpose or with the effect of dissipating, destroying, or
a.ppropriating, in whole or In part, the patronage, property, or business
of another engaged ini sueb indulstryi is condemned as an unfair trade
'H. T'he circularization of threats of suit for infringement of patents
or trade marks among customers of a competitor, not made in good
faith and for the purpose of harassing and intimidating customers,
is condemned as an unfair trade practice.
I. It is agreed that no member of this code shall at any time use
any methods or means of enticing employees from the employment
of any other member of this code and before hiring any employees
who have previously been in the employ of another member, the com-
pany about to employ such a person will invite a full exchange of
facts concerning such person about to be employed from the members
in, whose employ such a person mlay have been.
J. ~All patents or patents applied for, of design or construction,
now existing or hereafter apphied for, shall be filed in the business
office of thie ALssociat~ion and shall bec available for reference to any
member of the Association. It shal be construed that the filing of
such patent is notification of the existence of such patent or design.
Permission for use of such a patent may be open to any member in
the industry on application to the owner thereof and upon agreement
with the said owner upon terms or payment of royalties. The use
of suchn patents or patents applied for by any memnber without. con-
formling to this procedure shall constitute anl unlfair trade practice.
-K. The lt~tachedl specific conditions and terms of quotations and
sales, set forth in Appendix A shall constitute provisions of this code.
ARTICLE VfIII--PENA4LTIES AND DAMAGES
A. Any violations of any provisions of the code by any member
of the IndustrIy shall constitute a violation of the code by such
B. Recognizingo that the violation by any member of the Code of
any provision of Article VrII[, Sections C, D), FE, C0, H, and K' shall
disrupt the normal course of fair competition in thle industry and
cause damage to any: other member or members of thre Code, and
that it will be impossible fairly to assess the aml~ount of such damage
to anly member of the Code; it is hereby- agreed by and among all
members of the Code that each member of the Code wh`lich shall
violalte any such provision shall pay to the Treasurer, as an indi-
vidua~l and nlot as the Treasurer of the Association, in trust, as and
for liquidated damages, a sum not to exceed 25%r of the net billing
price for that project or projects.
C. Unless otherwise provided for in Section B, the Board of Direc-
tors of the Industr shall, upon complaint of any mrember of th Code,
determine whlrether suchn other violations have in fact been made and
shall aLssess as liquidated damalges9 a fine against the violator in an
amount which, in their opinlion1, represents damages to the Code or
any member thereof. Such penalties and damages, however, can
only- be assessed by a vote of five out of six of the Board of D~irectors
of the? Association. In, the event that a violator of the Code shall be
one of the members of the B3oard of Directors, a vote of four of the
five remaining directors shall be required.
Such members shatll become liable to pay the Treasurer of the
Association as an individual and not as Treasurer of the Association,
in t rus t, liquid t~ed da images for such unfai practices in the amount and
at the time established by the Board of Directors of the Association.
D). Th'~e amounts so paid to or collected by the Treasurer under this
Article shall be held and disposed of by himn as part of the funds col-
lected under the Code, and each member of the Code not guilty of the
unfair practice in respect of whichl an sucht amounts shall have been
paid or collected, shall be credited with its pro rnat share of such
amount on account of any and/or assessments due or o become due
from such member under t~he Code. Such pro rata share shall be
compulted on thle samle basis as the last previous assessment made
against each mtiember onl account of the expense of admiinistering the
E. Any thing in the Code to thze contrary notwithstanding, the
Board of Directors of the Associat~ion by the affirm~ative! vote of five
out of six of the Board may waive any liarbilit~y for liquidated damages
unposedl by or pursuant to an~y provisions of the Code for any viola-
tions of anly provisions thereof. If in its discretion it shall~ decide
that such violation w~as innocentlyT made, then, the collection of such
damages will not, to any material ext~entl te~nd to effectuate the policy
of Title I of the National Indust~rial Recoveryr Act.
A. Nio provision in this code shall be interpreted or applied in such
a manner as to--
a. Promote monopolies.
b. Promote or encourage unfair competition.
c. :Elimninate or oppress small enterprise.
d. Discrimlinate against small enterprise.
B. T'he ]President of the U7nited States may fromn time to time
cancel or m~odif~y any order, approval, license, rule, or regulation issued
under this title; and each agreement, code of fair competition, or
license, approved, prescribed, or issued under this title shall contain
an express provision to that effect.
C. Ame~ndments to this code may be proposed by any member of
the: Association, and such amendments wh~en adopted by a m~ajorityr
vote of the Association shall become effective if, and when, approved
thereafter by the President of the U~nited States.
D. TPhis code shall become effective on September 1st, 1933, or if
it hzas not been approved by that date, it will become effective five
(5) days after it has been approved by the President of the United
APPENDIX A OF THE GENERAL CODE
UNIFRon CowarrTIOus As GENERAL SPECIFICATIONS OF QUOTATIONS AND SALas.
1. Owving to uncertain, market conditions this quotation is made subject to
immediate acceptance. In accepting this quotation you shall give us a written
order showing specificationls and price.
2. All prices are based upon continuous and uninterrupted production and
delivery of the entire order, unless quotation states otherwise.
3. WFfe assume that shipment is to be made to one point in packing units con-
venient to us. An extra charge will be maade for split shipments and special
packing unless so covered in our quotation.
4. Instructions for immediate shipment are to be given us on. all merchandise.
Unless otherwise agreed ini the quotation, it is understood that all merchandise will
be shipped wit~hin. 45 days from receipt of prints, otherwise we wfill place in a
public warehouse at your risk and expense any merchandise left. on hand after
that time, and such merchandise will be packed bulk in cases and billed for such
packing, unless other definite packing instructions are provided.
5. The percentage of overrun must be specified in your written. order aind oulr
obligation is limited to the amount specified.
6. W~e reserve the right to a 5 percent spoilage on your prints on runs of 1,000
sheets or moret, 10 percent on smaller quantities.
7. All prints are to be delivered, f.o.b. Our factory, not later than 60 days after
placing your order. We assume it to be satisfactory to you to place in immediate
production ALL prints or other materials wh~en, received by us.
8. Any maaterial furnished by you, other than actual print, will bec accepted by
us only at such times as we specify.
9. All materials furnished by you tare held at your risk, and we assume no
responsibility for loss or damage by fire, water, or any clause beyond our control.
10. Mounting of varnished sheets involves an, additional charge.
11. Should you specify finished samples for your approval, it is understood
that we will be required to furnish no more than three, one of which is to be
returned to us with your O.K. thereon.
12. All dies are to be furnished byr us and remain our exclusive property. At
our discretion dies will be destroyed after six months' time.
13. Terms are net cash, no discount.
14. All merchandise is sold f.o.b. our city or cars.
15. All charges for preaid transportation itemas will be payable upon presenta-
tion of our invoice.
A. For best mounting results we require thie use of 80 to 90 lb. if coated paper
and 70 to 80 lb. if offset or machine-finish paper, basis 25 x: 38, grain all one way.
B. When received by us, prints must be flat, free from wrinkls and folds,
and the ink must be thoroughly dry and firm. )All prints are to be delivered in
cases or on skrids properly~ protected with, contenlts properlyr marked.
C. D~ue to the impossibility of manufacturing mounting board to exac caliper,
a variation of 5%b in thickness must be allowed.
D. Wek require thaat you confr with as regarding layout and all other details.
Advance planning will insure economy, prompt service, and satisfactorU results.
UNIVERSIlTH OF FLORIDA
3 1262 08853 8482