NATIONAL RECOVERY ADMINISTRATION
C ODE OF FAIR C O MPE TITI ON
AND COMPOUNDS INDUSTRY
AS SUBMITTED ON AUGUST 29, 1933
REGISTRY No. 622-02
The Code for the Rosin Pitch and Compounds 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 Administration
as applying to this industry
UNIV. OF FL LII. wi Do oun may
.. ITH r SA
GOVERNMENT PRINTING OFFICE
For sale by the Superlatendent of Documents. Washington, D.C. -*--*--
Price 5 cons
IlARRKY J. UILANK, Zophar Mills Inc., Brooklyn,, Nu.Y'.
CODE OF FAI COMPETITION FOR TH-E NATIONAL ASSO-
CIATION OF ROSIN PITCH ANDll COMPOUNDS MANU-
.AuRICLE I--Sunurssion or C1ODE
The Rosin Pitch andl Compounds Industry desires to avail itse-lf
of the privilege affordedt under Title I of the National Industrial
Recovery Act by submitting a Code, the acceptance and approval
of which, by the President of the Unlitedl States is respectfully
Ilt is the purpose of the Alssociation through this Codie to fu~rhe
improve its servTice to thne nation as a whole by insuring fair and
adequate wages, by increasing the number of workers employed
through a reduction in the hours of service, byq conforming to such
other employment conditions as will meet. t~he views of the President
of the United States, and by eliminating certain competitive p~rac-
tices which have grown up in Thie Industry and which are un~fair to
the interests of the public andl those eng~aged in th Industry,
including its employees.
Furthermore, it is the purpose of this Cod~e to assure (a) its bene-
fits to all members of the Industry regardless of membership in any
Association providled they bear their equitable share of the exenses
involved; (b) thEat this Code is nlot designed to promote! monopolies
or to eliminate small enterprises and will not operate to discriminate
against them andl will tend to effectuat~e t~he policy of Title I of the
National Industrial Recovery Act.; and (c) that members of thle
Industry functioning under this Code will deal fairly with the pub-
lic with respect to tl Ir p hnthe prices char~gedl and the quality of their
ARTICLE III-AUTHORITTY IFO Sunurssion
In July 1933, a group of manufacturers of Rosin Pitch anid Com-
pounds, which we believe to be representative of the Industry, ap-
pointed a General Code Committee charged with the responsibility
of preparing this Code for submission to the President of the United
States, after the various persons, firms, and corporations inl the
Industry had an opportunity to consider it.
It is believed that this Code is truly representative of the purpose
of the Indlustry.
Trhe term The Industry as used hierein means all persons en-
gaged in the manufacture of Rosin Pitchi and Compounds, whether
8012--33 1 1
for sale or for owvn consumption. TLhe term "Association herein
means the National Association of Rosin Pitch and Compounds
Manufacturers, or their successor or successors. The term "' effective
date means the fifteenth day after this Code shall have been ap-
proved by the President. The term Trade Sales as used herein,
means all sales to distributors, jobbers, and dealers. The term "( In-
dustrial Sales means the sales to all other classes of buyers.
ARTICLE V--COLLECTIVrE BARGAINING
In accordance with. Section 7 (a) of the Act of June 13, 19833
known as the National Industrial Recovery Act, it is agreed: (1)
that employees shall have the right to organize and bargain collec-
tively through representatives of their own choosing, and shall be
free from interference, restraint, or coercion of employers of labor
or their agents, in the designation. of such representatives or in self-
organization or in other concerted activities for the purpose of collec-
tive bargaining or other mutual aid or protection; (2) that no em-
ployee and no one seeking employment shall be required as a condi-
tion of employment to jomn any company union or to refrain from
joining, organizing, or assisting a labor organization of his own
choosing; and (3) that employers shall comply with the maximum
hours of labor, minimum rates of pay, and other conditions of
employment, approved or prescribed by the President.
It is clearly understood that the foregoing paragraph does not
impair in any partic-ular the constitutional rights of the employee
and employer to bargain individually or collectively as may be mu-
tually satisfactory to them; nor does it impair the joint right of
employer and employee to operate an open shop.
Nothing in. this Code is to prevent the selection, retention, and ad-
vancement of employees on. the basis of their individual merit, with-
out regard to their affliation. or nonaffiliation with any labor
ARTICra VI-MiTNImumJ WAGES AND MAXIMUrrM Ho0URS
(a) Emplo~yers in The Industry shall not work any conig
clerical, or office employee in any office, or in any ohrpaeo
manner, more than a maximum weekz of 40 hours ~with thne right to
work a maxzimum week of 48 hours in any 6 weeks within a period
of 6 mronrths.
(b) Employers in T'he Industry shall not work anly factory or me-
chanical worker or artisan. more than a maximum week of 40 hours
with the right to work a maximum week of 48 hours in any 6 weeks
within a period of 6 months.
(c) The maximumn hours fixed in the foregoing Paragraphs (a)
and (b) shall not apply to superintendents, assistant superintendents,
Iforemnen, engineers, firemen, watchmen, janitors, technical men, or to
employees on emergency maintenance or repair work; provided that
the wages paid to employees above excepted for time in excess of the
maximum shall be at the rate of 1 and 1/3 times their regular com-
pensation, provided further that these maximum hours shall not
apply to employees in a managerial, executive, or any- other capacity
who receive $35i.00 per week or more.
(d) Employers in The Indlustry shall not pay any of the classes
of employees mentioned in paragraph (a) less than $15.00 per w~eek
in any city of over 500,000 population, or In. thre immediate trade area,
of such city; nor less thann $14.50 per week in any city of between
250,000 and 500,000 population, or inr the immedilate trade a rea of such
city; nor less than $14.00 per w-eek in anyr CitT of betweenl 2,500 and
250,000 population, or in the immediate, trande area of such city; and
in towns of less than 2,500 population employers shall increase all
wages not less than 20 percentprovided that this shall not require
wages in excess of $12.00 per wek Population for the purposes of
this agr~eemuent hall be determined by reference to the 1930 Federal
(e) Employers in The Industry shall not pay any employee of the
classes mentioned in Paragraph (b) less than 40 cents per hor unless
the hourly rate for the same class of work: on July 15, 1929, wpas less
than 40 cents per hour, in which, latter case not to payg less than the
hourly rate on JTuly 15, 19292 and in no event less than 30 cents per
hour. It is agreed that thxls paragraph establishes a guaranteed
minimum rat of pa8y regaardless oP whether the employee is com
pensated on the basis of a time rate or on piece work performance.
(f) No person under the age of 16 shall be employed in the
ARTICLE 'V~II--PREID~ENTIAL Arrrnonrrr
In accordance withr Section 10 (b) of the National Industrial Rie-
covery Act, it is agreed that the President may from time to timae
cancel or modify any order, approval, license, rule, or regulation
issued under Title I~t~hereof.
Each manufacturer in The Industry shall file at Association H~ead-
qeuarters (location to be determined upon later) such reports as shall
required by the President of- the UCnited State~s.
After this Code shall have been approved by the President of the
United States, it shall be administered through the Associations by
a board of 5 members to be immlediately created and to be known
as the Rosin Pitch and Compounds Indiustry~ Recovery Board."
This Board shall be composed of the following members: 1 mem-
ber of the General Code Clommittee; 4 mebers, one each from the
North, South, East, and W~est.
No person shall be eligible for membership on this 1Boardl who is
not directly engaged in the manufacture of products of The Indus-
try. Furthermore, no company or group of affiliated companies shall
have more than one representative on this Board. Vacancies which
may occur in the BoardZ for any reason whatsoever shall be filled by
a majority vote of the remaining members. This Board shall elect
its own Chairman, adopt its own rules of procedure, appoint such
committees as may to it seem necessary from time to time, and may,
in its judgment, delegate its authority to such committees. The
]Board shall promptly file with the National RIecovery Admrinistra-
tion a copy of its rules and a statement of the procedure which it
shall ]have estanblished.
Any expenses of the Association in carrying out the work of the
Industrial Recovery Board or any other authorized expenditure
shall be met by an annual membership fee in the Association. If
for any reason an eligible manufacturer does not desire to join this
Association he may7, nevertheless, receive all of its benefits, including
participation in this Code, by paying a fee to its Treasurer equal to
the dules. The Rosin Pitch an~d YCompounds Industry Recovery
Board shall have full responsibility for its expenditures within -the
limits of such appropriations as are made from time to time, pro-
vided that no traveling or other expenses of Board members shall
be paid out of the Aissociations' funds.
ARTICLE) X--MISBRANDING, NIISLABEI;ING, AND FALSE ADVERTISING
Transactions known to the law as misbranding, mislabeling, and
false advertising are specifically prohibited by this Code, and, after
the ef~ectivPe date, shall be punishable as a violation thereof in addi-
tion to any other penalties imposed by any other law.
ARTICLE XI-GIrrs To EurLorras or ANOTHER
It shall be a, violation of this Code for any person engaged in
The Industry to offer or give--or to permit any representative of
his to offer or give--any commission, gratuity, or other thing of
substantial value to employees of his customers or prospective cus-
tomners, except in the case of payments made with the consent of the
employer for a definite service rendered.
~ARTIICLIE XIII--STANDARD CE)RIMS OF CASHI DISCOUrNT
On and after the effective date the terms granted by manufac-
turers shall not exceed: Trade Sales Accounts: 1%o for cash in 10
days, net 30 days; Industrial Sales Accounts: 2% for cash in 10
days, net 30 days; except that the discount to trade sales accounts
may be extended to the 10th day of the month following pur'chas~e
and the discount to industrial sales accounts may be extended to the
20th day of the month following purchase to customers who reg-
ularly discount in the month following purchase, and provided that
no discount shall be allowed after thne discount date.
Thne practice of supplying trade sales accounts on consignmlent is
prohibited. This also includes what are commonly known as ware-
housing arrangements. Ev-ery manufacturer who has any suchI
consignment stocks in the hands of buyers on the effective d~ate of
this Code may continue the same but he shall file a dletailedl list of;
such accounts with Association Head.quarters wclhere r~efer~ence may
be made to it at any reasonable time by interested par~ties.
If any manufacturer finds it necessary to take over a stock on, a
consignment basis for legitimate credit reasons;, he sIhal e per-
mitted to do so, but shall immediately report the circumstances to
ARTICLE XIV-FREE IEALS
Exrcept as otherwise provided herein, free deals in or connected
with industry products are prohibited. "' Free deals for the pur-
pose of this Code shall. include all forms of marketing dlevices,
whether t~he full cost thereof or only a, part of said cost is borne
by the manufacturer, whereb~y the said manuifacturer furnish~es
goods of any kind other than such of his own p~rodlucts as have been
contracted for on his usual terms to trade sales customers: Providedi
that the ~term Free Deals shall not apply to thle furnishing of
advertising accessories of smaall value such as the usual circulars,
Illustrative of the practices which are prohibited are included the
(a) Premiums (gifts of unrelated merchandise) such as paints,
articles of furniture, etc.
(b) FIree Goods (extra amounts of one's own pout)
(c) Free samples (But the term Free Deals doets ntapl
to samples given for test purposes).
ARTIcLE XVTCOMIPETITIIVE PICES
(a) Package D3iferesnti~al~s.--While the basic sales price of all
trade-sales products (and for this purpose ~a 500-16. barrel is con-
sidered basic), is within thie control of each manufacturer so far
as his own goods are concerned, subject only to Section (b) of
this Article, each manufacturer shall adjust the price of products
marketed in other than 1500-lb. barrels in accordance with th stand-
ard uniform package differential of 16%%.3~
(b) Selling below C'ost.--Products of the Industry shall not be
sold at less than cost; which cost shall include the following:
(1) The sellers total market replacement cost of raw materials
(based on cost furnished monthly, or oftener if necessary', by author-
ity of the Rosin Pitch and Compounds Industry Recovery Board
through the Association).
(2) Containers and/or packages.
(3) Cost of processing (as defined in Schedcule AI hereof which
is made a part of this Code).
(4) Administration and overhead not less than 10E% over all.
(5) Transportation charges, if any, to destination.
ARTICLE XVI--COMPETITIV'E RELATIONcS
(a) Inducirng Breach of Co~ntract.--No manufacturer either di-
rectly or indirectly or through his salesmen, representatives, or
agents, shall encourage any .purchlaser of thle products of The In-
dustry to disregard or fail to live up to his cormmitmentl to another
member of the Industry.
(b) Disparageme~nt of Competitors.---The use or part icipation in
the publishing or the disseminating of any false statement, r~epre-
sentation, or mnsinuation which disparages the business of a comn-
pet ito~r, or attacks the reputation, goods, prices, credit, service, or
adver~tisingr of any competitor or of any other industry, is an
unfair andb uneconomic practice and is prohibited.
(c) Undersellinzg Claims.--The use of or participation in the pub-
lishinga or the disseminating of any statement or representation
which lays claim to a policy or continuing practice of generally
underselling competitors, is an unfair and uneconomic practice and
(d) Esiticinlg Employees.--Members of The Industry shall recog-
nize the right of employees to use all honorable and reasonable ef-
forts to better their conditionss, but shall refrain from directly or
indirectly soliciting or bidding for the services of an. employee, or
a~ny one associat~ed with another member. Only wlhen such an
employee takes the initiative shall a member of The Industry have
the right to negotiate with him about prospective employment.
ARTICLE XVII--R1ETUJRNED GOODS
No merchandise shall be returned without first securing the con-
sent of the manufacturer. OnJ such goods as are accepted for return,
a reasonable charge shall be made and fre~ighnt charges must be pre-
paid by the shipper returning the mnerchandise, except in the case of
defective products or where in, some other wayT the manufacturer
may be responsible.
Each manufacturer in. The Industry shall report to Association.
Headquarters any violation of this Code of fair competition which
may come to his attention. It shall be the duty of ~Association. Hflead-
quarters promptly to undertake a preliminary investigation of such
alleged violations for the purpose of assembling pertinent facts and
to file a report thereon with the Rosin Pitch, and Componds Industry
Recovery B3oard. The Board may then appoint a special Arbitra-
tion Comltnittee, if the respondent agrees to abide by this procedure,
to conduct hearings, in the course of which the Arbitration Commnit-
tee may examine the books of the respondent in regard to matters
pertinent to th~e charge, or it shall delegate this function to an
independent auditor either at its own instance or at the request of
the respondent. The Arbitration Comrmitttee shall follow th~e rules
of procedure recommended by~ the American Arbitration1 Associa-
tion. If the respondent declines to abide by such, procedure or if in
its discretion the Rosin Pitch and Compounds Industry Recovery
Bon rd deems this procedure to be contrary to the best interest of
The In3dustry or of the public, then the Board shall file a formal
complaint with the National Recovery Administration or other con-
stituted Government authority.
Members of The Industry shall submit desired amendments of
this Code to the Rosin Pitch and Compounds Indlustry Recovery
'Board through Association HNe adqu arte rs. By agreement of a
majority of the Board, an amendment, so received or initiated by the
Board itself, shall be referred to The Industry in the following
manner: those members of the Board who represent manufacturers
fromt the sevral sections of t~he Country shal call meetings olf the
manufacturers in their sections. The several Board mebers shall
then submit individual reports to Association H1eadquarters, which
shall collate them alnd submit a full report to the Board. There-
after, the Board shall vote on submitting the Amendment to the
Government and shall so submit it if at least two thirds of the Board
vrote to do so.
(See Article XV (b))
Cost of prrocessing.--Cost of processing shall include a charge for each of the
following elements of cost :
Direct labor : Loading, compounding, heating, packing.
Heat, light, and power.
Depreciation of factory buildings and fixtures.
Depreciation of factory machinery and equipment, kettles, retorts, power
plant, trucks, furniture, anld fixtures.
Interest on capital investment in factory land and buildings or rent where
the manufacturer does not own the land and buildings.
Repairs to machinery and equipment, buildings and fixtures, power plant,
trucks, and furniture and fixtures.
Salaries of superintendents, foremzen, receiving clerks, janitors, elevator oper-
ator, night watchm~len, and any other nonproductive workmen.
Salaries of laboratory or other technical m~en.
Supplies and sundries.
General expense in factory, including telephone, telegraph, stationery, etc.
UNIVERSITY OF FLORIDA
IIIIIUI I I 11115lIlli ll llil
3 1262 08852 5596