NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 renta
Approved Code No. 110
Registry No. 699--03
AS APPROVED ON NOVEMBER 10, 1933
g WE DO OUR PART
1. Executive Order
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superintendent of D~oc~uments, Government
Printing Office, W~ashington, D.C., and by district offices of the B3ureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Offtice Bjuilding.
Birmninghaml Alal.: 257'F~ederal Building.
Boston, Mass.: 1801 Customhouse.
Burlff';lo~, N.Y. : Chambnlier of Comm nerce`u uild i g.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Nuite 17i06, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commller~ce.
Dallas, Tex.: Chamber of Commercer c Buildlingr.
Detroit, Mich.: 2213 Fiirst ~Ntional Bankl Bulild~ing.
Houston, Tlex.: Chamlbe~r of Commnerce BuiTlding.
Indianaptolis, Inld.: Chalmber of C'onunerece Building
Jack-sonville, F'la.: Chlambe~Ir of C~omerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
TLos Angeles, Calif.: 1163 South Broadway.
Louisville, K~y.: 408 Federal Building.
Memzphis, Tennll.: 2'"0 Federal Building.,
Mrinuouplolis, Minn.: 213 Feeral Building. d f
New Orleans, La.: Roomi 225-A, Custombhouse.
New York, N.Y.: 734 Customhouse.
Norfolk-, Van.: 406 East Plumle Street.
Philadelphia, Pa.: 033 Commercial Trust Building.-
Pittsh~urghJ Pa.; Chamyber of Commerce Buildinlg.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506i Olive Stre~et.
Sanl Franlc~iscol, Calif.: 310 Customnhouse.
Seattle, W~ash.: 809g Federl~n Building.
CODE OF FAIR COMPETITION FOR THE I3ARDWCOOD )ISTITLLATION
An application having been duly made, pursuant to and in ftd1l
compliance with the provisions of title I of the National Indus~trial
Recovery Aict., a proved June 16, 1933, for myo approval o aCode
of Fiair Clompetition for the Hardw~ood Dsilto nuty n
hearings hnavinlg been held thereon and the Administrator having
rendered his report~ containing ani analysis of the said code of fair
competition together with his recomm~uendations and findings with
respect thereto, and the Adlministr~ator having found that the said
code of fair compe>tition complie~s in all respects with the pertinent
provisions of title I of said act and that the requirements of clauses
(1) and (2) of subsection (a) of section 3 of the said act have been
NOW1, THEREFiORE, I, Frankjlin D. Roosevelt, President of thle
'United States, pursunnt to the authority vested in me by title I of
thfe National Indlust~rial Reco~very Act, approved June 16, 1933, and
oth~erwise, do adopt and approve the report, recommendations, and
findings of the Administrator and do order that the said code of
fair competition be and is hereby approved.
F2RANKLIN( D. ROOSEVELT.
THE VHITE HjOUSE,
November 10r, 1933.
Approval recommended :
HuanH S. Jo-Nxson,
A dminiiistrla tor.
T1he PRESTDEN T,
The Wh~ite House.
SmR: This ist a report of the hearing on the Code of Fair Competi-
tion for the HIardwlnoodc Distillationl Indul~stry, conducted in Wanshing-
ton on the third of Oc~tober 19:33, in necordance with the provisions
of the Naational Industrial Recov\eryS Act.
ECONOMICS( EFFECT" OF TH[E CODE
'The Indlustry covered by this Code is one of subjectinga to distil-
lat~ionl either hardw~ood unfit for Ilumbering~ or the byproducts of
huinber~ing alctivities in the hardw\ood forests. Thle results of this
distillation are chfarcoal. neetate products, andf methanol. ~A large
part of th1e~ labor involved in thle industry is engaged in the cutting
up of ha~rdwood-c~ into uitalef~1 size.s for thep Ireto-rts andJ cartingr thls
wood to the retorts;. As a whole, the emplloyees, ot her than those
engaged- in ch~emical control at the r~etor~ts, arej not skilled factory
The two p~rodlc~ts s other than chaccrcoal are c~hemiicals completing
with chlensicalls m~-ade by the chemical indusrltry, ursuallyr as bylprod-
ucts. Th~e costing of byprcdulc~ts comeslc undler t~he generall ru~le of
joint costs and as a conlsequjlenlce th~e net'hanol andl nectate products
of the hardw\~oodl distillation industry are subjected to severe com
petition by the? syntheticr prodfucts. It is be~lie~ved that anyl serious
rise in costs in this industry would served still fur-ther to curtail vol-
umne of p~rodluct. A c~onsidlerable pIroportion of the labor in this
induT~;stry S;is ngge in opera tiorls inl the woods similar to those ulnder
th Lmbr od.The provisions of the HE-ardwtlool D~istillation
Code as to hours are gener~ally similar to those of the Lum~ber Code,
while the wagle p~rovisions are( slightly better than those in the
The number of fnectarly emplbyeelr~!i~. in this industryJ in 1930 was
nearly 3,000. This number hle dlrolpped to approxsimately 1,5300 in
101.It does not appear that thiis redu~ctioni has com~ne about through
volumenc of outputll. Thef low point in thet indutry~t~ ini July 193)2
show)ed1 less than 1.,000 emloyeer~~ls engag~ed in the indu~stry.lllili l~
Thelu numberllt I of empvloy"fees engag in wodetignu aln
others operations ouitside of the: :l'futr normallyislt app rroxnuaely
threec time~~ us.- malny. A~ c~onsidernh1,r~le portionl ofthouidwrkf
this type is not on1 a full-time! basis.
TIhe maxl~inmnIII hour~is at oult in this Codce sholdlt inlcrease emp~l'oy-
met yasmchuselt his, r,~~cuple w\ithl an inlcreasel~ in wagen~s
of whb'-h~~l 165; wilrpeeta mrvmn nprhsn oe
whlich. while nIall11 in absolute quanr It i ty w ill he( larg~, e fr rthe1 i ndusltrIy
and represent~ll an apprlcciablle~ .stcep tclward~ thle g:oal set up1- i) t~he
National Indl~ustrial Re~lcovery ~c~t.
The Administrator finds that-
(a) The Code as recommended comp~lies in alP r~e~spects wTith the
pertinent provisions of Title I of thne *Act, including, without limni-
tationl, subsection (a) of Section 7 and subsection (b) of Section 10
thereof ; and that
(b) Thle applicant group imposes no inequitable restrictions on
admission to membership therein and is truly rep~reserlnta~ti of the
Ha rd wo~cod Dist illa tionl Industry; and that
(c) The Code as recommended is not desigrnedi to promote monopo-
lies or to- eliminate or o~ppreis .imnall enterprises and will not operate
to discriminate against them, and willt tend to effectuate the policy
of Title I of the National Induistrial Rtecovery Act.
It is recommended, therefore, that -this Code be immediately
Hua~n~ S. JoHNson,
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A CiODE OF ~FAIR COEMPETITIONII FOR THIE: HARDWOOD
ARBTICCLE I- URPOsE
Thisi code is set up for thre p~urpose of increasing emlployment,
establishing fair and adequate wages, effecting reduction of hours,
improving standards of labor, andt- eliminalting unfair trade prac~-
tices, to the end of rehabilitating the wood dlistillation :industry. It
is, the dleclarled purpose of thle subsc~rib~ers to this co~de to bring rates
of wages to levels necessary fo~r the high~est prnetie~nble stanrardl o~f
living, and7 to restore the income, of the industry to levels which will
rmake possible the paymennt of such wages and avoid fur~ther depletion
of capital assets.
AerTICLan II 1DEFINITIONS
The term HIardwood Distillationl Indull~lStr as u1sed her~ein, and
her~einafter referred- to as "Lthie TIndusit-ry ", includes the~ car~bonizationl
an~d/or dcisitillart~ion of woodnr and~ the manufacrturre of chrcoal~~l pig
iron and such a iocialted e~nterprises as may from time. to time, sub-
je~ct toV Lthe appro~IVa.l ofI Lthe PresIdenl~t, be inc~lud~edl Ilmer the provisions
of this Code.
The term~n "L Division "" as us~ed herein meauns ,a specific geogI~raphic
area in which Hardwood D~istillaltionl is practiced. There are three
such dlivisions--the Eas~ter~n, comllprise the states of New 'Yorkr,
Pennsylvania, and WJest Virginiat; th~e W~estern, ~ompr"ises ~the states
ofi~ Mijchiga and Wisconsin; the Southern, comprises the states of~
Tenlnessee, Ke~ntuckly, and Arkansas.
The te'(TCrm "ood Chnemial Institute, Inlc.", as used herein means
the trade association of those engagred~ in the ea~rbonization and/or:
distillation of wood, and any subdivisions thereof.
Thfe term "' Emecrgenlcy3 Execultive Commllittee '" a.s used herein means
a commllittee! comlposedl of the ]Pre1sidentl of the WVood Chemrical In-k
st-it.ulte, Inc., and four members elected by, and recpreserlnttive of, the
Divisions~ of thle Industry.
The~ term "" Code Authlority "' as used hlerei'n mleans th~e Authority
set up? under Art. VPI-A(1) hereof.
The term "I Mem~er of the Indust~ry as used her~ein in7cludles any-
one engragedl in th Indlustly: as above definedl whether as an employer
orJa on his owsvn~ behalf.
The term Product as used 'herein includ~es- charcoa~l, methanol,
and,'or i~ts compounds, acetate of lime, a~etic aC'ci, and charcoal
'The term Employee '" as usedl herein inclues aIny person eng~agedl
in any capacity in the: natulre of emplloyee, i1rrespctivi e of the method
of pay~ment of his compen a~tion.l
The term "L Employer as used herein includes anyone for whose
benefit such an emnployee is so enga ed.
The terms, Preuidenlt~ "', "_Act ", and "'Admninistrator as used
herein shall mean respectively the Pr~e~sident of the United States,
the National Industr~ial RecoveryS Act, and th~e Admninistrator of said
Population for the purposes of this code shlall be determined by
r~efer~enc.e to the 1930 Federal c~ensus~.
No employee shall be permittedl to work: more than an average of
40 hours per week in any six months' period nor more than 48 hours
in any one week: nor more th~qn eight hours in anly one day, except
(a) Employees in a mlanagerial, execu~tive, or superv\isoryy capacity
earnlinlg in excess of $150.00 per month.
(b) Outside salesmen.
(c) Night Wantchmzen.--This exemption shall not affect more than
2%r of the. total employees, but each plant may have at least one such
(d) Teamtirikel crs an Truck~ Drlirlers.-T[ransportation. distances,
topographical and weather conditions mnake it impossible! to comply
strictly with the maximum hourly schedule, but employment of teaml-
sters shall not be allowed in excess of an averagep o'f 48 hours per
week over any 6 months' period. Employment of truck drivers shall
not be allowed during any six months' period for more than anl average
of 44 hours pe~r week, nor more than 48 hours in any one week. The
foregoing provisions shall not affect more! than 20%0 of the total
employees of any one plant.
(e) Emp~lloyees engaged in a continuous process operations, where
adeqluate qualified labor cannot be made available, and where riesti-
tion of hours would unavoidably reduce production; in such cases th
maximluml weekly) hours shall not be in excess of 48 hours.
(f) Chem~ists and clerical employees in .isolated communities of
less than 1,500 populations,! who m1ay be employed nlot more tha 48
hours per wr~eek.
(gfi) Em~plo~yees engragedl on em~ergrency work due to hen vy sniowfall
hllbe excecpted from the gleneral hourlls provisions, but at least
timle and one third shall be paid for hours w~orkred in excess of 8 hours
per day, andc these empl-loyeesc shall be gr~anted 1 full day of res in 7.,
Sucht emlployme~nt in ex~cess.- of 48 hours per wreek: shall be subject to
the speccific p.ermistsionr of thle Code Aiuthority.
(h) All' employees not specifiedd above shall be paid tim and one-
third for hours worked "in excess of 8 hours per day, withl the
ecsep~tio-n of manintenanc~re and( repair men~1 for whom there shall be a
tolerance of 100; above 8 hours per day.
(i) N'o employSees shall wocrkc, or be permitted to work for a total
number of hours in excess of the number of hours prescribed above,
whether empyloyed by one. or more empllo~yers.
ARTICLE IV- TAG;ES
1. The mnininlul wages per hour paid to emlployeeS shall not be
less than 300 per hour in the EaStern'l and Western Divisions or less
than 25b per hour in the Southern Division, except the followinng,
whose wng~es per hour shall not be less than 80'; of the nuinimumr
wages specifiedl in this parIagraph these ex~eptions~ shall not affect
more than 8%~ of the total mnblner of employees in any kone plant.
(a) lliales between 16 andl 18 years of age whlen teIneck of the
income would w~ork a hardship on. thleir dependlents.
(b) In the rSo~uthlern Division femanles employed for p~nckingr char-
coal in pap~er bags.
(c) Those physically handl(ienpped.C~
2. This Article establ-ishes a minimum rate of pay wVhich shall
apply, irrespective of whe~ther an employees is actually compensated
on a timne-r~ate, piec~eworllk, or other basis.
3. All chemists and clerical employeesc pa;il on a salary basis.shall
be paid- not~f less than $14 per weekr.
S4. All part-time w~orker~s shall be paid on an ho~urly basis at not
less than the minimum h1ourly rates prescribed in Article IV~,
5. There shall be no evasion of this Code by reclassificatlion of the
functions of wvorkers. A. workler shall not be inc~lluded in one of
the exceptions specified in Airticle III: unless the idecntientI fu;c~tio~ns
wer~e id7entically1S cla-ssified- onl June 15, 1,3;3.
6. Salaried employees, heretofore receivingg in excess of the mlini-
jzntum set fourth in Atrticle IV (3) shall not have their snalaries reduc~ed.
Wagie ear~ners~ heretofore receiving in exce~ss of the mininlunnl set
forth in Article IV Section (1) shall not have their hourly rate
ARTICLE V---CHILD LABOR
No person under 16 years of age shall be employed in the Hard-
wvood Distillation Indu sctry.'
ARTICLE VI-A nL IN.sln.
STo effectuante the policies of this Cod~e, a Code A~uthority is thereby
set. up to cooperate with. the Adminlisltration for the administering
of this Codet.
A. Organizationr.-1l. The Code Authorit~y shall consist of ther
Eme~~rgency' Exrecutive Committee of the Hardwood D~istillation In-
dustry', which is to consist of a r~epresenltative or re~presen~tatives of
each division,. selected~ by the saidt division by a fair manner of
electionI, together with the President of the Worod Chemical Insti-
tu~te, Inc. The Easter~n ]Division shall select twro repr~esentatives,
the: Wecster~n Division shall select one reprlesen~tative, and the South-
ern Division shall: selerct one representative. The President, may
appocint. not more than t~hr~ee members who shall be without vote.
". Participation in th~e administration of this Codle, and an~y suibse-
quen"t rev'ision of or additionl thereto shall be extended to any mnem-
ber of thle Industry who may accept the proper pro rata share of the
cost and responsibility of creating and administering it, either by
becoming a member of the WVood Chemical Institut~e, Inc., by paying
the dues that shall be levied on members of the W~ood C'hemical
Institute, Inc., as prescribed by the bylaws of said institute or byr
payingr to the Code Authority his proportionate share of the cost
of creating and admrlinisitration~l of this Code, based on his rated
cordage, or as mayT otherwise bet determinedl by the Code Authority,
subject to the approval of the Administrator. Nlio initiation or
entrance fees to the Wood Chemical Institute', I~nc., shall be chanrged.
3. Each trade or industrial associntiol n paricipating in the lselec-
tion or activities of the Code Authority shall: (a) impose no in-
equitable restrictions on memberships and (b) submit to the Admin-
istrator true copies of its articles of association, bIn,rws, regulations,
and any amendments when made thereto, together with such other
information as to membership, organization, and setivities as the
Administrator may deem necessary to effectuate the purpose of the
4. In order that the Code Authority shanll at all times be truly
representative of the industry and in other respects comply ith the
provisions of the Act, the Administrator may provide suchhrig
as he may deem proper; and thereafter if he shall find that the Code
Authority is not trulyi representative or does not in other respects
comlply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authority.
5. All members of the Induxstry shall have the right to appeal to
the President from decisions of th~e Code Authority.S
B. Duties axnd Powers -.--The Code Aiuthority shall have t~he fol-
lowing duties and powers to the extent permitted by the Act arid
subject to approval by the Administrator:
1. To administer this Code in conformity with the provisions of
the National Industrial Riecovery Aict under the aluthlority of th
2. To collect atnd compile all necessary data as prov~idedl in Article
3. To submit to the N~ationali Recovery3 Adlministrantion for ap-
proval amendments proposed by any division or member thereof,
or initiatedl by the Co~de Author~ity itself.
4. To secure current inlformatioicn concecrning the competition in
domestic markets of imported products of this and competing in-
dustries, and if it shall f~ind that such prlodlucts ar~e being imported
into the United States in sub ,talntial quanrtities or inlcreasing ratio
to d~omlestic produictioni andl on such termsn or under such conditions
as to rendier inecffec~tivect or seriously to endangert~l thle mal~intenancl e of
this Cod-e, it shall c~ompla>in to the President. p~ursuantt to the provi-
sions of Slection 3 (e) of the Nationlal Indurstrial Recove~ry Act. and
petition for suitable res~trictionls on thle impo~crtation of such products.
C. Operativfie Provisions.--The Code Aulthor~ity shall study tihe
funictioming and operation of th~e industry uinder this Code. w-ith a
view to malkingI r~c~lllec nunendtio nls to the Admninistrator which it
deems desirable for mlodlification or atditio~n to thle tradre prInetire
regulations andi rules andl regulations containled in this C'ode.
Inr order to provide data necessary for the a~dmlinistelnt io-n of the
National Industrial Re~covery Act, the mnembers~ of the Iindustry
shall furnish, and the Code Auth~ority shall collect, all data and
statistics which may be called for under this Codle.
1. Any data and/or statiit~ics -of a conlfide~t~in1 nature shall be
collected b a certified public accountant selected by the Code Au-
thority. he information so collected shall be disseminated only so
combined with ~other information of the same type that disclosure
of indiv-idulal operation shall be impossible.
2. In addition to information required~~ to be submitted to the
Codte Auth~oiity, there will be furnishied to Governnienlt agenexes
silch statistical informalltion ass the Administrator mnay deemn nece~s-
sary for t~he pul~rpose recited in S~c~tion 3 (a) of the N~ational Indus-
trial Recovery Act.
The Codle iAuthoritly shall, after a study of the conditions in the
Indust ry, prepare anld submit to the Ajdmi nist ratorl for approval a
uniform system of accounting, specifinlg the items of cost to be
included, w~ith an alloca-tion of these costs to the products of the
ALRTICLE 1 IL--RULES OF TRADE PRACTICE
The Code A-uthor~ity shall study Intrad pratc.tice rules and the opera-
tionl thereof, andl shall make any recomm nendaRtionls from time~ to timze
to the Adminis;tratorl which it deems desio'nble for mlod-ifiention or
addition thiereto, which, upon the approval of the President, shall be-
comee a part of this: Code and have full force and effect, as pr~ovisio-ns
hlereof. The following trade practices are hereby pr;ohib~ited:
1-. For a~ny member of the Indlustry to sell the products of the
IndustryS below his individual cost of production of such products as
d-eterm~lined in ac~ccor~dance with the uniform system of acc~ounting re-
.ferred to in Article VIII, after it has been approv-ed~ by the Admin-
2. The secret payment or allowvance of r~ebates, refunds, commis-
sions, or unearned discounts, whleth~r in the form of money or othler-
wise or secretly extendling to certain purchasers special services or
provisions nol~t exTtendced to all purc'Lhalse's. under like terms and lcon-
3. No miemnber of the Industry shall renler false invoices subject
4. No extra or special freight allowlances shall be matde to stimu-
5. N~o product shall be sold with a guarantee against a dleclinle in
price before or after delivery.
6. W\her~e specifications for any products of the Industry have been
approved by the Puxblic H~ealth Service of the United States, by state
or local authorities and agreed to by the Code Author~ity on behalSf
of the Industry, rio members of the? Industry shall sell such products in
violation of such specifications,
UrdlVERe.ITY OF FLORIDA
||I ll1 I IIII 11IIIIII Ill|Illlill ll IIIIIIIIII IIIII
3 1262 08850 4591
7. The false mnarkting or br~andingr of any product of the Industry
which has the tendncyclc to mlisleadl br deceive customers or prospec-
tive customers, wh'tetherI as to the grade, quality, quantity, substance,
character, nature, origin, size, finish or preparation of any product
of the industry, or otherw\\ise.
1. ]Employees shall have the right to organize and bargain collec-
tively through r~epr~ese-ntatives of their ownl choosing, anld shall be free
from the interfer-ence, r~estr'ainlt, or coercion of employers of labor, or
their agents, in the desiganationl of such re~presentat~ives or in self-
organirzation or in other conc~erted activities for th~e purpose of col-
lective bargaining or other mutual aid or protection.
2,. No employee and no one seeking emplloym~ent. shall be required
as a conclit ion of employmIent to join a ny compny~n S un ion or to refrain
from goinmy, orgamzing, or assisting a labor organization of his own
3. ]Employ~ers shall comply with, th~e mlximlum hours of labor,
minimum rates of pa.y, andot~her conditions of emlploment, approved
or prescribed by the Pre~sident.
4. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provision
of Subsection (b) of Sec. 10 of the NPiational Industrial Recover~y Act,
from time to time. to cancel or modifyr any order, approval, license,
rule, or regulation issuedl under Title I of saidl Act and specifically,
but without limitation, to the right of the Presid'ent to cancel or
modify hiis approval of this Code! or any conditions imposed by him
upon his approval thereof.
5. Within each state linemb~ers of the industry shall comply with
any laws of such state imposing mnore stringe~nt requlreme~nts, regur-
lating th~e age of employees. wages, hours o-f w~ork. or health, fire, or
geenral working conldit ions, than under this Code.
6. No provision in. this Code shall be interp~reted or appliedl in such
m~anner as to:
(a) Promote monopolies or mlonop~olistic practice;
( b) Permrit or encourage unfair competition;
(c) Elimninrate or opprIess small e~nterp~ise; or
(d)Discrimlinute against small enterprises.
7, Where the cos~t of executing contracts entered into by the mem-
hers8 of the Industry prior to June 16. 1933, is increased by the appli-
cation of thle provisillons of the NEational Industrial Recovery Act a
fair and app~ropriaite adljustmnent of suich contracts to reflect such
increased costs mnay be attemlptedZ by negotiation or by arbitration.
8. Each emplloyer shall post in conspicuous places in his plant full
copies of thlis Clode.
9. This Code shall talke effect o~n the, first Mionday after its approval
by the lPresidlent of the Unitedl States.