Proposed code of fair competition for the reclaimed oil industry as submitted on August 30, 1933

Proposed code of fair competition for the reclaimed oil industry as submitted on August 30, 1933


Material Information

Proposed code of fair competition for the reclaimed oil industry as submitted on August 30, 1933
Portion of title:
Reclaimed oil industry
Physical Description:
9 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Petroleum waste -- Recycling -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 710-1-03."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004942692
oclc - 63654875
System ID:

Full Text

Registry No. 710--1---03







The Code for the Reclaimed Oil 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 .4drninistration
as applying to this industry


For sale by the Superintendent of Documents, Washrngton, D.C. - Price 3 rents


Digitized by the Internet Archive
in 2011 with funding fromn
University of Florida, George A. Smathers Libraries with support from LYRASIS and [he Sloan Foundation

hlipJ: www~v.acihie.Org/details/proposedcodeoffa5786unit



To, effectuate the policy- of title I of the~ National Industrial Recov-
ery Act, during the period of emergency, by reducing` and relieving
unemployment, imzproving the standards of labor, eliminating comp-
petit~ivee practices destructive of the interests of the public, employees
anld employers, relieving the disastrous effects of overcapacity, and
otherwise rehabilitating the Oil Reclaiming industry and by increasing
the consumption of industrial and agricultural products by increasing
purchasing power, and in other respects, the following provisions are
established as a code of fair competition for the Oil Reclaiming

Participation in, this code, and any subsequent revision of or addi-
tion to the code, shall be extended to any person, partnership or cor-
poration in the Oil Reclaimig industry who accepts his share of the
cost and responsibility, as well as the benefit, of such participation by
becoming a member of the Oil Reclaimers association. No initiation
or entrance fees shall be charged. (As this is a local organization to
date, dues or assessments of a national orgatnization have been left
open pending the formation of an Emergency National Committee.)


For the purpose of the administration of this code the Oil Reclaim-
in industry shall be divided into divisions as set forth below. Each
div-ision shall designate or establish its own administrative agency
or agencies. Each such division shall be independent anzd self-gov-
erning in respect of all conditions and problems relating exclusively
to the said division. Proposals in respect of matters affecting morec
th~an one division may be initiated by any- division, and shall be sub-
mitted for consideration to the Emergency National Committee of
the Oil Reclaiming industry, hereinafter described, and its determi-
na tion shall be binding upon said division and all other divisions
affec ted thereby.

Div~ision~s are hereby established as follows: California Oil Reclaim-
ers Association.


This division, and any others which. may subsequently be formed
within the Oil Reclaiming industry, shall set up an executive com-
m~ittee for thie purpose of administering the provisions of the code, to
9108--33 (

securlle adhe~r~ence thereto, to hear and aIdjust comnplaint.s, t~o consider
proposals for amendments thereof and exceptions thereto, and other-
wise to carry out within the division the purposes of the National
Industrial Recovery Act as set fort.hl in this code.
If a division, as named abhove, does not concur in th~e submit~tal of
this code; or if, at any time thereafter, a division fails to perform its
obligations as~provided hereunder, the Emergency Nat~ional Com-
mitteee of thle! Oil Reclaiming industry, herein after described, is herebyt
empowered to adopt a cods for thle division and mayl provide for the
administration of that code as if said 'Emergency ~National Committee
wrere the executiv-e of t~he division concerned.


The labor code estalblishedl by thie said division shall, upon approval
of the EmergencyT National Commit tee of the Oil Reelariming industry,
be binding upon all producers of products in such division. The labor
code of each division shall contain the following provisions:
(a)~ Eimployees~f in t~he? Oil Reclniminr industryy shall hav-e t~he right
to organize and bargain collectively through representatives of thi
own choosing, and shall be free from the interference, restraint, or
coercion of employers of labor, or their agents, inr the designation of
such representatives or in self-organizations or in other concerted
activities for the purpose of collective bargaining or other mutual aid
or protectionl.

(a) No emplloyee~ in the Oil Reclaiming industry, and no one seeking
employment therein, shall be required as a condition of employment to
30mn any company or union or to refrain from joinmng a labor orgamiza-
tionl of his own choosing.
(b) Employers of labor in the Oil ]Reclaimig industry agree to
comply with the m~axim~umI hours of labor, mlinimuml rates of pay, and
other working conditions approved or prescr~ibedi by t~he President.
And, in addition,
(c) Ai classification of kinds of labor ini the Oil Reclaimingn industryT,
as follows:
]Refinery Em~nployees (Stillmlen and Laborers).
Truck D~ri~vers.
(d) Mnx1imumlll hours for echCI class of labor, anld exceptions, as
follows :
Hours per
Refinery Emiuyee11,?~ I t illmen~l and Laborers) _, __ _........,,, 40
T ruc11(k D~rivers._ ....__ __ __ ....... ....... .. ... ... ... ...

(e) M~inimuml wrage for each class of labor, and exceptions, as
/Stillmen_ 500 per hour.
Reinery1~ Emp~loyeesJ- --- ---------- --- -- Laborers_ 400 per hour.
Trulck Drivers____________----- 409; per hour and/or
Clerical_ ______---------- 40g! per hour.
Salesmen,,____ __----.---- ...--- 65g per hour and/or

TIhis division, and any others which may subsequently be formed,
shall1 promptly undertake th~e fo~rmlation of a production code.
This code shall, operate within the limits of the production qu~ota of
the division as determined by the Emergency National C~ommit~tee,
an on such equitable basis, and for such period, as it shall determine,
and shall allot a maximum production to each producer of reclaimed
products in operation, or which proposes to operate, within the said
01vis100 .
This in~dustryr was originally formed for the express purpose of
conserving natural resources. Production is governed by amount of
oil draliningrs available. It shall be the duty of the Board of Directors
to set a matximnum produlctio~n figure on. the last day of each month
which shall govern t~he, production for the following month.
Production of reclaimed products in excess of his approved alilot-
ment, during any p~eriod byT any producer of r~eclaimed products
after having received from said established division a prodluctio~n
allotment on the basis approved by the Emergency National Com-
mit~tee, is an unfair method of competition, and thet offender shall be
penalized by anr assessmlent, of 2 percent on thie first 25 percent over
his allotment, 5 percent on the next 25 percent, and 10 percent on
all ove~r; receipts to go into a common fund for the benefit of the

This division, and any others which may subsequently be formed,
shall proceed at once to provide, for standard methods of costing
which shall be used by all reclaimers within this division for the
purposes of this section of the code.
It shall be an unfair mrethod of competition for any such reclaimer
to sell below reasonable cost. What is statistically know as thne
"mode" may be used as a reasonable cost, but mrust be so approved
by the Executive Commnittee.
Dropped lines or surplus stocks, sometimes design t.edt as "close-
outs", or inventories which mlust be converted into cash to meet
immediate needs, maty be sold at suchn prices as are nlecessatry to mnove
the merchandise inrto buyers' hands. H-ow~ever, all such stocks mnust
first be reportedd to t.he Exec~ut~ive Committee of the Division, and
be disposed of subject to the approval of that commttee.



T~her~e shall be an emergency national committee of the Oil Re-
claiming indtustry, to consist of a representative, or representatives,

of each division, selected by the said division, representatives of the
industry at large, toi be selected by divisional members, and repre-
sentatives of other groups which m~aybenildorprstao,
for he reset nmedas fllos: alifornia Oil Reclaimers Asso-

This Emergencyl Natiolnal Committee shlall be the generartl planning
and coorlilnating agency for the ind~_ustry- ]Its memerne s, selected by
establishled di-visions~, sharll be emlpm\-ercre by\ the saidf divisions to
act for themr cc-nc~lus-ivecly in res~pelct to all matters before the com-
mlittee for con.l-sicerlation and w\ithinl its jurisdi~icton. The committee
shall have pmi~~-ers and du~ties no~ p~crovided herein, and in addition
thereIt i it shall--
(at) Firomn time to time req'cuirel sulch r~eporlts from dlivisions as in its
j udlgmlenlt~ nuly be ncessa; 1ry to adv ~ise? it ;-dequatln ely of the admninist ra-
tion and1~ enlforcement of the p~rovi-ions! of this codJe;
(b) Upon complaint of interested par~Ities, or upon, its ow\~n initiative,
mzake such inqu(liry! and inves~tiga-tio~n into the ope~ra'tio~n o7f the code.
RS HIvI; be necessary -1 and
(c) Make11- rules and reguclaltio~ns ncessa~crlly for the aIdministration
and enfolrlrclmen of this codl~e. The tcomm~it tee may d~eleg~ate any
of its aulthorlitly to the0 Natlionll Control Coninilitteete hereinafter
p'';irovided and ma~ly clesiglnate such. agents us~ it sh~all determ~ine .
Thle Eme~rllc enetl N;ationn1: Co~rlr-nittee of the Oil Reeaimninr in-dlust~ry
in cooperation with, a~nd subject to thec appr''oval of, the p~rop~erly
dec~iimlatedl re~presentattivec)s of the Presidetlcl underC the Natio~nal
JwIstr'ial ~IlcRlevery Act, shatll de.'ltermineC, andI( frOm tim~e to time
revise, an es~tima::te of expected. rcec:ilamed oil I-onsumptio~i l n; ard. hased
there~~lnn it shall estab~llish~, and fromn timre to time rev\ise, anl equlitable:
prodlltionl quotat of thle Oil Reelaimingl indusrltry! and~ for eacht divison

The? Enwrgen1~IC.Y National Conunitte~e may establish a mnarkeiting
endolc with provi-inus~ with respect to:
(a) Grnlup sellinc2:
(b) Cln ~ilr -ation of outlets or puir~chaser~s andit rcogn~titio~n of
standatrdl andt economlic :ll y jud~'iif~ble~ priicec di~l'le~rentialls; amongl thiem;
(c) Divi-;ion~ of ennsumingll t~erritolry into market aIreas;, procviding
for p~lantls best equl~ippdc~ in, ser'Ve particull~lar markets, to co-nrcentr~ate3
sales efforts in suchl districts;

(f) Cooperati~ve a~vert~isine for the inrdustry;
(g) Collection murll intchangl;~lte of (Icredit~ informa~; tion;l
1I) CO~facl:rItv lllVOitlittl'lutallorl Of inslvenT.llt dPL'Jntri.;
(i) .hulf~~or mother ;Ispctcfs of miarketingi~.


The Emlergency National Committee shall hold a trade practice
conference at its earliest convenience, to estatblishl rules of fear t~rade
practice for the entire industry, other than the following:

(1) PIce Ch-an~ges
All price changes will be set by the Exec~utive. Committee of the
Division, and eachl rec]nimelr mu~t be notified of the change at least
wentyv-four hours before prices are effective.
Abnornlal deliveries in anlt ici~a t ion of price advan lrce~ and ic~c~eptanee
of or~der~s for subsequent. deliveries at prices effective before adva~ncess
atre prohibited.
(2) Price D3iscr~inelinati~on

It is an unfair trade-plractice for anly p~ersonl enrraged in interstate
commllerce, inl Cours~e of .iuch commller.Ce, either dirlertly or indirepctly,
to discriminate in price between different purchasers of commlodities,
w~her~e the eff'ec~t. of su(-h discriminated io.n mnay be to Fl~substianltia lessen
competition or tend- to cr~eate~ a moc-nopoly in any line of commrnctce.;
poie, that no~thinlg hereinl co~ntainedi shall pI~revntl dis~crimi~sinaion
in price betweenI purll(thasers of the same class on neenr-unt of diiffe~r-
ences in the grade, qualrlit!-, or quantity' of the commodity sold, or
tha~t, mcakes only due.1 alowance for dlifft(lerence s in th~e cost of se~lling
or trai-nspor~tatio~n or d~iscl~l~r~iminaio in pr~icec in the same or different
c~ommrunitie s mlade in good faith to meet comlp~titiion; and providedd
further, that nothing her1cinl emitninetd shall pr'evei~lt; personsi-'" engag'ed
in selling the prodlc~ts of this indurstry in commerce from selectinlg
their owvn customers in bona-fide transactions and not in restraint
of trad~e.
(8) Comm lierc;(al BZr;bey

Directly or indirectly to give or p~ernit, to be givenI or offer to give
money or anything of value to agrenlts, employees, or represe~ntatives
of culstomelcrs or prolcspective customers, or to algentts, employees, or
representatives of comlpetitors' culstomrcl~s or pro!spectiv-e cu~stomner s,
without. t.he knowledge of their employers or principalls, as an induce-
mlent, to influence thei employetrs or principa~ls to purchase or con.I1tra~etl
to purchase, industry products frontl the mkrrnrl of such gift or offer,
or to influence such employers or principals to refrain from dealings
or contracting to deal with coml~petit~ors, is an unfair tradt-e prnctic~e.

(i4) Misr~eprese n action

TPhe makling or caus8ing or p~ermlit~ting to be mladle or pub~llished~ anyr
false, untrue, or deceptive statement by! wNay of advs7ertiseme~nt or
otherwise concerning the grade, quality, quantity, or character of any
pr'odic~t of the industry having a tendlenlcyl and cap~lacity to mliSlead
or deceive purlchasers or pr~ospect~ive purlchasers, is an unfair trade

(5) TenoI Iaof Sale, Price Lists

(a) The indu~stry? approve~t s the pra~ctice of each individual member
of thne industry indlivdluallyT publishing and circulating to the pur-
chasing trade its own price lists.
(b) The industry~ appIroves the practice of making thze terms of
sale a part of all pulblished price schedules.

(6) Fals~e Inr Ioirce

Wi thhloldli ng froml or inIsert ing i~n bh e i nv\oi ce sitat~emen ts which make
the inv\oice a false record, wiholly or in. part, of the transaction
~e~pl''reseted on the face t~hereolf, is condemllnedl by the indulst~ry.

(7) Sec~ret Rebates

TChe secret paymenclt or allowance of rebates, I~frefuds, commrissionis,
or uInerned~t ci~ceounts, whether in form of money o~r otherwise, or
secr~etlyS exrltening~ to certain purchasers s~peciall services or privileges
not extended to all purchasers, ulnder like terms and conditions, wit~h
thne intent and with the effect of injuring a com~petit~or and where the
effect may be? to substantially lessen, compel~t~ition or tenld to crate a
monopoly or to inr~easonnhlyy restilnii trade, is an unfair trade
(8) De)(faurti~fon
TPhe dlefamantion of comlpetitorl~s by falsely imlputingg to them dis-
hlonoranble conduct, inabiity to per~formI1 contracts, qjuestionable
credit stalnding, or by other false r~epr1esentatio ns, or thle false dlis-
paragem~ent of the gradce or quality of their goodls, wvit)h the tendency
anld raplc~ity to mislead or dcec~~~ive prlrchasersI or p~rospectiv-e pulr-
chnser~s, is an. unfair trade prac.tice~.

(9) Role.< helorn~ cost
Thle ;eltlne of goodjts below\\ cost with thle intent and w~it~h the effect
of inju~r~ing a compel~titor and where thle effct may1? be to substantially
lessen compel~titionl or tend to) created a monopoly or to unreasonably
rest.raml trade, is anl unfair trade prachee~.

(_10) Service c~hrgles
As the o~il-I~cnllrednmin indutll~ry- was first dev\eloped by the UCnited
States (L ve-rnllnent, and is still bciing conltinudc by- the gov-ernment
in its various depa,1r~tmencrts, such. as army1I!, navy, air corps, and civil
branrl)ches to ConseCrve thec na~tulral resoulrrcs, and aIs thec storage of
hugeL' quant!)itics of (crunk;-ense dllrainings at a1 service station has
been delae a, se~r~ious fire kn~zurd~ byr all large c~it fie depa~rtments,
Oflln :1 Illell1('( t0 mlrlia~ltjll WJIIIe 3,n'1( po iredI Ofor tlc 10 S viftP of c1;l1-ea;sc ( cTriingir is, Of paylng cHsf 1Or

(11) Oustom reclaiming for individnuals
Theg reclaiingjn of crank-case drainings by any reclaiming plant
either co~nuner~cial or customs, for any- jobber, service station. owner,
individual or group of individuals, who furnish their own dra~inings,
whether drainings are collected in one location or tankr, or inl a series
of locations or tanks, from which all or any portion of oil reclaimed is
to be sold or offered for sale directly or indirectly is an unfair trade
prac tice.
WCillfully inducing or attempting to induce the breach of existing
~ontlract~s between. competitors and their customers by any false or
dececptiv~e means whatsoever, or interfering with or obstructing the
perform ance of any such contractual duties or services by any such
means, with the purpose and effect of unduly hampering, injuring, or
emrbarralssinlg competitors in their business, is an unfair trade practice.

Securing information from competitors concerning their businesses
by false or misleading statements or representations or by false
impersonations of one in authority and the wrongful use thereof to
unduly hinder or stifle the competition of such competitors, is an
unfair trade practice.
TIhe Emlergency National Committee may authorize any one divi-
sion. to adiopt fair trade practice rules relating to the practices peculiar
fto that division.
In order to provide data necessary for the administration of the
N t~io~nal Industrial Reco~very Act, the members of the Oil Reclatim-
ing industry shall furnish, and the ]Emergency National Committee
shall gather, statistical information from all members of the industry,
as follows: (a) Capacity; (b) Production orders, and shipments during
thle month; (c) Unfilled orders and inventories (rawv and finished) on
hand at tlhe end of the month; (d) Number of persons employed, wa-nget
ra tes, earnings, and hours worked; (e) Accounts receivable at the end
of the month; (f) Price, costs; (g) atnd other items at the option of
thet industry.
The Emrergency NPational Committee of the Oil Reclaimning indus-
try shall appoint from its own. membership a National Control Comn- of three (3) members. The National Control Committee shall
exer~cise such. authority as may have been delegated to it by the said
Emlergency National
All communications and conferences of tlhe Oil Reclaiming industry
with the President or with his agents concerning the approval or
ninendmlentl of this code, or anly of its provisions, or any matters
re-lating thereto, shall be through the said National Control Com-
mittee. The Nartionall Control Committee shall serve as an execu-
tive aigenlcy for the Emergency National Committee of the Oil

Reclaiming industry, and shall be charged with the enforcement of'
the provisions of this code and with the duties, t~hrou~gh algent.s or
otherwise, of hearing and adjusting complaints, considering proposals
for amnendmrents and making recommendations thereon, approving
recommendations for exceptions to the provisions of this code, and
otherwise administering its provisions. Any divisionI or an adherent.
to the provisions of this code or subject. to its terms shall have the
right of appcnl to the Emergency National Comnit~tee fromn decisions
of the National Control Cbommittee, and the decision of thle said
Emergency National on said appeal shall be final.
The function of this committee shall be the general planning and
coordinating for the Oil Reclaiming industry, and the cooperation w~it~h
similar boards of other industries, to the end of effecting a balan~ed
national economy.
1. No provision in this code shall be interpreted or applied in such
a manner as to--
a. Promote 1\fonopolies.
b. Permit or encourage unfair competition.
c. Elimninate or oppre~ss small enterprise; or
d. Discriminate against~ small nlterpr~1ises.
2. This code, or any of its prov-isions, mnay be cancelled or mIlodified,
and any approved rule issued thlereul~nder shall be inetffe~ctive to the
extent necessary to conform. to anyT action by the Presidecnt u~ndler
Section3 10 (b) of the National Industrial Act.
3. TChe Emergency Naitionall Co~mmittee of the Oil Re~claliming in-
Ju~stry? and the National Controc:l Committlee shall from11 timle to t.imre
make to each d-iv-ision estulblishe~d, or to be estalblish~ed, under the
pro -i sio:ns of this cod-e, such rccommn nend~a t ions, inlclu~d ing amenndmlents
of tlhe coder, as in. their judcgmlenti will aid the eAfec~tive admllinistra tion
of this code or may be ncctssary to effectua~te within thle Oil Reelaiml-
ing induTi st ry or within any3 di vision thereo-\lf the pur~po:se of the Ncational
Industrial R1ci\ecover Act as adm~inistered~f.
4. Am~nc~lendmn to this cod~e mayT be proposed~ by aIny established
division. to the Eme~rg~ency- National Colmmitteec or many be initiatedl
by it, flnd~ when approved by the President shall be etffctivec.
5. Viio~l t~ion byT any producer of the Oil Reclaimlinlg industry of any
provl\isionrs of this code, or anyr appr~ovedc rule issuedt the1reunderr is an
unfair method of competition.
6. ICn. ordcr to avc:,id un~rllue delay in mak~lingr efefecive throughoutll~l
thle Oil Reclaimi ng ind iicustry this code of fair complet it ion, th~e following
provisions are adopted, and other provisions of the colfe in co~nfict
therewcith arelc sulspended until such timel as tihe Emelrgency? National
Commitit tee shanll determinille that thec pur~poses of the arlticle ha~ve been

A. E~:ll-h establlishedc- divisionl shall subhmit:~ u pomply alS~ possible
to the Enilclr(.' ney~ Nat~innal~l CllnunlitteeC, a compll~ lete diviion n in
confrmr~~ity- w\ithi the genelral p~rovisionls of thiis co-de. uhdisol
codle, if foundl~ substantially to p>~lromote the~ plurpolses of thle National
rod,~I shacll be nc~i~cepted provis;ionllyl1 9 by thle Emelrgency National
Cornuittee and its inunedc~iate~ enlfor'cemnt~lf authf~orize. Thel EmerC-
:iency Sntional Conlnittee shacll thereuC~ponl p~~~rced as rpIdjly as p~raLC-

ticable to m~ake such adjustmenlts of and coordination between the
prov-isions in respect of hours, wages, productions, and costs of several
divisional codes as may' be necessary to bring the~m inzto conformity
with the provisions of t'he National Code by:
1. Consultation and negotiation betw-een the divisions affected.
2. By: its owin findings after full consideration of all factors
B. If any division fails to submit withlin a reasonable time code
provisions as provided in subsection (a) of this article, and if in the-
judgment of the Emergency N\ational Committee suchz failure is
unduly delaying the effective operation of this code, the said com-
mittee is authorized to act as diviisional agency for said division and
to submlit on its behalf the necessary code prov-isions which, upon
approval byT the President, shall be effective until the said division
hllhave submitted satisfactory code provisions.
7. This code shall be in effect beginning ten. days after its approval
by the President.
8. TPhe President, may, from time to time, cancel or modify any
order, approval, lice~nse, rule or recgulation issued under title I of the
National Indust~rial Recov-eryS Act.
9. Such of the provisions of this code as are not required to be
included therein by the N\ationlal Industrial Recovery Act mayt with
the approval of the President, be modified or eliminated, if it appears
th~at the public needs are not being served thereby and as changes in
circumlstances or experience may indicate. llThey shall remain in
effect unless and until so modified or e~iliminated, or until the expira-
tionz of the act. It is contemplated that from timet to time supple-
me~ntaryj provisions to this code, or additional codes, will be submitted
for the arppr~oval of thze Presidenlt to prlevent unfair competition in
price and other unfair and d~estru~ct~ive competitive pract~ices anrd to
effectuate the other purposes and policies of TCitle I of the! National
Industrial Recovery Act anld which shacll nlot conflict with the
provisions hereof.
10. If any provision of this code is declared invalid or unenforce-
able,. the remaining provisions shall nevertheless continue? in full
force and effect, the same as if they had been separately presented
for approval and approved by the President.

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