Code of fair competition for the wholesale and retail automobile sales, supply, repair, maintenance, and service industr...


Material Information

Code of fair competition for the wholesale and retail automobile sales, supply, repair, maintenance, and service industry in the territory of Hawaii as approved on March 26, 1935
Portion of title:
Wholesale and retail automobile sales, supply, repair, maintenance, and service industry in the territory of Hawaii
Physical Description:
p. 53-71 : ; 24 cm.
United States -- National Recovery Administration
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Automobile industry and trade -- Law and legislation -- Hawaii   ( lcsh )
Automobiles -- Maintenance and repair -- Hawaii   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1724-41."
General Note:
"Approved Code No. 556."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004950878
oclc - 656593642
System ID:

Full Text





F~or ale by rhe Superintendent of Dcuments, W~asbgaton, D. C. Price 5 centa

Approved Code No. 556 B

Registry No. 1724--41



U.S. DEPOTC' i ~-

This publitation is for sale by3 the Superitltntlendet of Documents,, Governmetnt
Printing Office, as~hington, D. C., andl by thle following N. R. A. offices:

Atlanta, Ga.: 625 C'itizcens &~ Southern National Bank Building.
Baltimore, Mdl.: 130 Customllhouse.
Birmingham, Ala.: 201 Liberty Na~tionali Life Buildlingr.
Boston, nIllI-.: Roomn 1200, 80 Ferth.rall Street.
Buffalo, N'. Y.: 210 W~hite B~uilding.
Chii Jn.I Ill.: Room1 204, 400 North Mlichigan Avenue.
Cleveiland, Ohio.: 520 Bu~lkley Buibililne.l
Da~llas, Tex.: 1212 Republic Ban1k Buildingr.
D~etroit, Il II.: 415 New Feder~al Bliblline..
H~ouston, Tex.: 403 Milam Building.
Jacklsonvill, F'la.: 12.- Unitedl Sntates Courthouse andl Post Office
Los Angfeles, Calif.: 751 F'inerun.M Street, Southl.
.Lui~~ivill. K~y.: 408 Fed~eral Buibli-.
Mlinneaplolis, Minn.: !'tIII RoanOke Buiblinei.
Nrashv\ille, Tenn.: 415 Cotton States Bulill1ina.
Njewar~k, N. J.; 434 Indcustrial Offic~e Building, 10thel Broa~d Street.
New Orleans, La. : 2141 Custombouse.
Nrewv York, N. Y1.: 45 Broadwvay.
Okilahomla City, Okrla.: 42'7 Commnerce Exschange Buildling.
Philad~elphia, Pa.: i,:3:: Commerciatl TIrust Building.
P'ittsburgh, Pa.: 4101 Latw anud 'i~nance ]Building.
Portltand, Oreg.: 407 Parpk B~uildXing.
Providence, R. I.; Najttional Exc~hapec Bank Build~ing, 17 Exchange
St. Louis, Mto.: Suite 1220, 506 Olive Street.
San F~rancisco, Calif.: H~umbolt Bankr BuildingS, 785 Ma~rkect Street.
Seattle, WGash.: 17i30 Exchangel~~ Buildling.

Approved Code N~o. 556



As Approved on Mlarch 26, 1935


Atin appliention having been dully madnre pursuantll to, and in full
compnliance with, the pr1ovisions of Title I: of the National Indlustriall
Recoveryr Act, approved June 16, 1933, for apporovral of a Code of
Fair Comnpetition for the Wiholesale and Retail Autom~obile Sales,
Supply, Repair, Mlainltenance and Serv\ice Industry in the Territory
of Haw~aii, and hea~l'lrinS having been duly held thereon, and the
Deputy Ad m inistra torr f~or Hawaii having mande and submni tted to the
National Industrial Rnecoveryr Board his report on said Code, con-
taining rhis findings with re-pecct thereto, andl the annexed report of
thle Nationall In~dulstrial Recovlery: Board on said Codel, containing
find.ings~ with respect thereto, having( been made and dir~ectedc to thle
NOW~f, THEREFORRE], on behalf of the Presidenclt of th~e Unitedl
State~s, the National ICndustrial ecrovcry Boardl, pur1sun~nt to author-
Ity~ \esed in it by Exeenl-tive Orderl of the Presidecnt, includling
Executive Order~l No. G000, and otherwise; dloes helreby inem-polrate
by rIefe~rnc~ue said report of the Deputy: Ae~lministratorC)I for Halwaii
a~nd the anlnexed report of the Natio~nn1 Indlustrial. R~coveryJ Boardl,
a~nd does here~by c~onlcur in and adopt the findlingsr of fact madel~
therecin, and does findr th3t thne said Code compllie~s in all res~pcts
w-ith the pertinen~t p~rovisions~ anll will promotent the policy and pur-
poses of Title I of the unationa~l Indulstr~ial Recove\-ry Act; and does
Ili1ereby- order~ that said Code of Fair Competition be, and it is
thereby a7pp~orove. Pllhiret to the following~ conditions:
(1) Thalt all Inwmbelris of the Who~le-nle & Rrtbili Automobile Sales~.
Supply1!. Repa'ir, Manintenanceir and Serv\ice JIndustry in the Territory
of Hwn\\~ii. as definedr- in, the said Codl e under11 ~A~rticle IL1 S~c-tionl 4,
to the extent that they~c are engaging in the said Inlust ry in the Ter-
1 4 363 *1608-11735 (5i3)

r~itory of HE-awn~ii, shall be exemnpt from the provisions of an~y other
Codle of Ftair Comipetition to w-hich they miight nowy or might here-
after, but for, this ordcer, be subject;
(2) That this Codle shall become effective thirty (30) days from
the dlate hlerteof unless go~od cau~se to the contrarly is shlown to the~
National Industrial Reco-er~y Board within tw-enty-five (25) days
a nd the N~ational Industrial Recovery B~oardl issues a chequeb- i l~nt
Order sta~ying or miodif~yingf this Order of Approval;
(3) Thiat Ariiticle VIII be and it is hereby stayedt until further
order of the INationa~l Indlustrial Recovery Bo0ar~d, pendlingf submis-
sion by thle Territorial Code Authority of evidencet to show the need
for the provisions of said Article.
Bys WCT. A. HARRIMAN, Adm~-inistr~ative Of)?cer.
Approval r(e 1onun1Iended:
B3AnzoN T`V. MU3[RRAY,
Divisionl Admnzinistrator.
March I'i;, 19135.


The Whlite Hioutse.
SmR: Thlis is a rep~or~t on the Code of Fair Complletition, for the
Whorle~lcnle and. Retail Aultclmblile Salie. Supply, 1Repalir, `Mainte-
norl~ce and Service Industry in the Territory! of H-awlaii.
The P'ublic Hearingr was mininetedct l in Honolulu, T'. H., on Jan-
IInr1y 15, 10S4,-f in ncordanc~;lle w-ith the provisions of thle Natfionalll
Industrial TiReenverl~ Act. The Autom~obile rSales and Serviciner
A~suociation~, wThich. is presentingilr th2is Code, canillns to represen~c~rt over
lifty- per cent (50rl.) of the! Industry and more than eighlty--six.
per cent (8602c) of thle volume of bul-iness~.

Thfe Code prr~ovides for a maxsimnum workr week of for~ty-foulr (44)
hou~irx with thle followving exceptions and exemptions:
(a1) Employees engagedl as exeutives, outside salesmen and/or
(b) Wa7telune~ln whio performl no other duties shall not be pcrmnit-
ted to work mrllle than fifty-six (56G) hours in any seven (7) claty
period andc not more than thirteen (13) dlays in any fourteec n (14)
tlay pe'iod,6. The maxzimuml hours for sales emnployee.<~, excep~lt out-
side salesmen and collectors, wa~tchlmen who per'lformll other dultie ,
tilling~ Ftationr aItte~ndants (fas, oil, Un~ttery tire, w~ash and Inbr~lien;-
tioni service), garage foremen, janitors, chauffceurs, andf dr1iver ,
shanll be forty-eight (48) houl ~ r.- per wek.
Prop~rietors, emnployer~ls and executives~ shall not wMork ult pr'oduc-
tive labor moreI'( hours per any or p~er wreek than is pcermiittedc for
emplol'~yees in thle same type of work, except~l,
(a) Ai filling statfionl attendant wicho has no other olcc:upa;tion and
wh-lo is emplloyed~ as the only: workel-r may be pel~rmitted~ to work:
fifty-two (52) hiouris in any sevenil (7) dayi? period and not mo~R~e thanll
tenl (10) hours in any1? one day.
Thiis C'ole ~tabllishes a mininnonm wnage of twvelve dollars ($12.00)
per week''I for all emllployees, ecepc~t.
(a) Execcutives~~ hal;il bec pa~il nct less than thirty dollars (82~1.00)

(b) Chaunllfeurs and1~ drivers shall be paidl not less~ thanl fourteen
dcllinrs ($14.00) per w-reek.
(c) Watchmen'l~llll who) perfounll no other dlutices shall be paid not Ile-s
thanii twncity cents (20C) per hour.
(dl) A~rtilsans shall b~e pa~id not le~ss than1I fortyl? cents (4l04') pe"r

1. F~ir-t three (3) month .ll~ twentyf-five CentS (L)-r:) perf lu(,1Ir
2. O\cer three (3) Ionth,lll~ thlirty cents (30.) per. hour."

(f) Apprentices shall be paid not less than the following rates:
1. Fiirst three (3) months, ten cents (1060) per hour.
2. Second three (3) months, fifteen cents (154) per hour.
3. Third three (3) months, twenty cents (20(C) per hour.
4. Fourth three (3) months, twenty-five cents (254~) per hour.
5. Ftir~st six (6) months, second. year, thirty cents (304) per
6. Second six (6) months, second year, thirty-fi~ve cents (35d)
per' hour.
(gr) Beginners and learners engaged in clerical work, sales work
(except outside salesmenl~l and collectors) or as filling station attend-
ants during the first three (3) months of employment shall be
paid not less than ten dollars ($10.00) per week.
(h) Outside salesmen, if on a salary basis, shall be paid not less
than sixty dollars ($60.00) per month; and, if paid on a commission
basis, shall be guaranteed a drawing account of not less than fifty
dlollar~s (400.00) per month.
Employees shall be paid not less than one and one-third (1%~)
times thle lerglarP1 hourly rate of wages for all overthnei~l work.


The p~rol'~-('' Code will effect a wFiage increase throughout thle In-
dustry of approximately thirty-five per cent (3'5%0/). It will also
bring about a reduction in the hours of labor in the Incdustry of more
than twenty per cent (20%) as compared with July 1, 1933.

Thne Deputy Administrator for Hawrjaii, in a letter addressed to
the National Industrial Recovery Board, has made at clear detailed
report of the history of the Industry covered by this Code and of
the conditions existing in that Indcustrly at the present time. He has
made lengthy and detailed findings of fact in regard to said IIndiustry.
The said report of the Deputy ~Administrator for Hrawaii is sub-
Imitted herewith and is incorporated by reference into this report, and
the National Inrdustrial 1Recovery 'Board. does hereb~y concur in and
adopts the report submitted.
Fior these reasons this Code has been approved.
For the N~ational Industrial Recovery Board:
Admil~;l ~inis !trai Of)Ecer.
31.inenr 26, 1935




To effectuate the policies of Title I of the Nalt~ional:l Industrial
XRecovery~c Act, this Code is established as a Codle of Fair Compec-titionl
for the Whol~cl~sale and Retail Automobile Slles, SuTpply, Re'pair,
Maintenance and Service Industry of the Territory of Hawaii, and'
its provisions shall be thre standards~d of fair complettitonr for ach.1
IndrustryS and b~e binding upon every member thereof.


SECTION 1. The term Codle" as used~ hereinl means thle Code of
Fair Competition for this Ind~ustr~y.
rSECT'ION 2. The termIl Tllerritory as used~ herein means the Terri-
tor~y of Hawaii.
SECTION 3. The term "L Induf~stryS as used herein means the whole-
sale and retail automobile sales, supply, repa~ir', maintenance and
service Industry of the Territory of H-awaii. This definition does
niot include thle manufacture of au~tomoc. biles, parts, or tire, or the
re fi n1ing of pe trIole umn.
SECTION 4. Thne term M~ember of the Industry as used hereinr
menstin anly person who wmholesales or retat~ils new and/or ulsed auto-
mobiles, parts, accessories, tires, batteries, or other replacement sulp-
plies the1refor; or who rebuilds, assembles, recnovaites, repairs, panints
or1 trimis automobloiles, or anypar't thereof ; or whno retails petroleumnr~
product or other supplies fr use in automllobiles; or wrho engage
In the par'kin~ or stOringl of aultomo1biles; or who inl any othec rman-
nor engag~res in any ph`tase of the automocbile, indus~.try."
SilECrzox( 5j. Thle term person as usec~d herein menlc l any indci-
voidual, par~tner~shlip, hnui, corporation, trust, buying~r or .elling~ clubt
or aIssoc~iaion.
SECTrION 6. The term "' hui as used~t herein menlr l an inform~lally
organiizedl paritner~ship.
SE-cTIONc 7. Thle term "Association "' as usecd hercinl means C" Th~e
A~utom~obile Sales and Service Assc~iatio~n of the Territory of
SECTION 8. The term '" Memiiber of the Assocint ion "' as uised herein
macnsi~ a pers'On holdliing membelrshiip in the Automobile ,Sales and
Service Associntion of t~he Territory of HaTra~:ii.
1See palragraplh 2 (1) of order approving this Code.

SECTION 9. The term "Alutomobile as used herein meac;ns automno-
biles, including pa~ssenger~l cars, trucks, busses and other commercial
naltonnoli\tiv vehicles, for use on the highways, excluding tractors and
motor cycles.
SECTION 10. The term County as used herein means the Citly
and Count~y of Honolulu and/or the other counties of the Terr~itory
of H~awaii, as defined in Section 1575 of the Revised Laws of H-awaii
SECT`ION 11. The term Executive as used herein menlls1 one
who, either for himself or for an employer, is engaged primarily in
supervisingr employees.
SECTION 12. T'he term employee as used herein includes any
and all persons engaged in the Industry, however compnlatedl~ ex-
cept a memlber of the Industry.
.CE(.rrox 13. The term "' employer as used herein includes anyone
by wh-om such employee is compensated or employed.
SECTION 14. The termn Part-time employee as usedl herein mneans
a person emloyedj-~l in any classification of the Industry less than the
maximum hours of emuploymlent permitted in such classification.
Seenow.,~, 15. Thle term Impartial Agent as used herein means a
confidential agent designated by a Code Authority or the National
Industrial Recovery Board to ser-ve as its agent in makings investigra-
tions and r~eports.
SECTION 16. The terms President ", "Act "', and B~oard as used
herein, mean respectively, the President of the Udnited Stattes, Title
I of the National Industrial Recovery Act, and the National Indus-
trial Recovery Board.

SECTION 1. Afelll~berS Of the Industry shall not kn~owinglly permit
any employee to work for any time which, when added to the time
spent at workl for another employer or employers, exceed~~.- the mlaxi-
mlum ]permit-tedl herein.
SECTION 2. The weekly wages of all employees receiving more
than the mninimnum wages prescribed in this Article shall not be re?-
duced from- the rates existing on July 15, 1933, notwithstanding any
reduction in the number of working hours of such employees.
SECTIONT 3. No employer shall permit an employee to work more
hours per day or per w~eek than hereinafter provided, except in any
emergency, and all such emergency work in excess of the prlesc~r~ied
hours shall be considered overtime.
The following are r~cognb~ized as holidays: New Year's D~ay, W7ash-
ington's IBirthday, Mlemorial Day, Kamehameha Day, Fiourth of
July, Labor Day, Thanksgiving Day andl Christmas, or the days offi-
cially designated for the observance thereof.
(a) No employee, except day watchme-lcn, night watchmen and
garage floorment may be perm'~itted- to work on holidays, except(1
filling station employees mnay be p~ermitted to work not more than.
four (4) hours on sucli days, and (2) emergency repair wctork involv-
ing breakdowns oir protection of life or property may be permitted,
providing that such emelrgency1(3' labor performed on thle above\~ holi-
days by any emplloyeec, shall be considered overtime.

S1~ECTIOS 4-. NO OmD1loyPc shall IH' Ipermitcol tO Work~l in teXcc. SOf'
forty-four (44) hours in any! sevet n (7) day per~io~d, nlor inl ecesrcs of
eight (8) hours in any~ twventy-four~ (-24) hour perciod,cl except as
followss :
(a1) ThecIre 1hal be no ma xlimum~ll hours for executives, o~utside sales-
men and/or collcctors..
l(b) Wa~tchmncr who11( perform no others duties shall not be per-
mlitted to w~ork morle than fifty-six (56) hours in any seven (7) dlay
period,? and~ thir~teen (113) days in anyS fourteen (14) day per~iod~.
(c) Thle max;1imumll hours for sales employees, ecep~it oultsidel sales-
men and collectors, watchmenll!'l. who perform o~thert duties, filling sta-
tion attendalnts~ (ras, oil, battery, tire, w-ash and lubr~i~uicatin services),
aragr~~re fc~-llore n: j anitors, chnuffeurI C'I1S,: and1 dr i ver s shall be forty-ci hlt
(48) hours per week.
SECTIONJ 5. NCo proprietor, emnployler, executive, or other employee
shall w-orkl at prod":uc~tive labor more hours per day or per week: than
is per~mitted unrderr this Code for any empllloytee in the same type of
w~ork', except as follows:
(a) A fillingr station attendant who has no other oc~cupaltion and
who is employed~ as the only worker in a fillinlg station which is not
o~perated~ byT, attached to or under thne sulpervislcn of any other busi-
ness or depanl~rtment of business, may be permlittedl to w-orkl fifty-two
(5f2) hours in any seven (7) days period, but not molr~e than ten (10)
hlourls in any; one day.
(b) The hours of such emplloymnent m~ay be dividlel among any
numlber of split shifts, p~rovided that the total work'2ing time plus
the intervals between shall noct ex!ced fifteen (15) hours in any one
working day; and further provided that the intervals betwspeen shifts
shall in no case be less than two (2) hourlls each.
(c) A schedule of hours at which erv\ice is available in such filling
station shall be postedl in a consp'icuous place oil the p-rem~-ises, an~d
such schedule shall be aIppr1ov-ed by the lTerritor~ial Code Authority
andc thet B~oardl prior to its adop~tion.

SECTION 1.. On and afterl the effective date the minimulllnm wage
which shall be pa;id by anry employecr to any employee engaged~l in the
Industry shalnl be Twelve Dollars ($12) perl week, except as follows:
(a) Executives shall be paid no~t le s, thanr Thirty Dollars (#:30)
p~er week.
(b) Chaul~ffeur~ls and drlivecrs shall be pani( not less thanl Fourteen

(c) Walte~llunn who per'lform'l no otherI duties shall b~e panid not less
thanl~ twnclty cenrts (200,) per'' ho"r.

melrS, carpetnter~.- radiato~~llrmen tin.-miths~ andr!ksmit hs)I shanll be
pa"id no~t less~ than forty c~entsi (4003() per hour.
(e) Arti~;rsan' hlperscl shall be panid~ at nout less than, the following
(1) first three monthsfll, 254 p~er houir
(2) over three mlonthls, 30C per ho(ur

(f) App~rentices, mechanicalal Department) shall be paid not less
than the following rates:
()First three months, 10$ per hour
()Second. three mon~llths, 150 per hour
(3) Third three months, 20Q! per hour
(4) Fourth three months, 250 per hour
(5) Fiirst six months, 2nd year, 30& per hour
(6) Second1~ six months, 2nd year, 354 per hour
(g) Beginners and learners engaged in clerical work, sales work
exceptt outside salesmen and collectors) or as filling station attend-
ants, during the first three: months of employment shall be paid not
less than Ten Dollars ($10) per week.
(h) Outside salesmen and collectors, if on a salary basis, shall be
paid not less than Sixt~y Dollars ($60) per month; and if paid on a
commission basis shall be guaranteed a drawing account of not less
than Fifty Dollars ($50) per month.
SECTION 2. Employees shall be paid not less than one and one-
third (11/3) times the regular hourly rate of wages for all overtime
worked. The regular hourly rate for any employee whose wage is
paid on a weekrly basis shall be the quotient of such employee's weekly
wage divided by thle number of hours regularly worked by such
SECTION 3. No deduction shall be made from the compensation of
any employee who is paid on other than an hourly basis because of
his absence from wcPork in the observance of any of the hereinbefore
mentioned holidays.
SECTION 4. Part-time employees shall be paid not less than the
proper proportion of the wage specified for full time in the classi~fi-
cations in which they work.

SECT'ION 1. (a) A person may be employed as an. apprentice by
any member of the Industry at a wage not less than the minimumn
wage prescribed in Section 1 (f) of Article IV if such member shall
have first obtained from an. agency to be desig~nated or established by
the Secretary of Labor, a certificate permnittingr such person. to be
employed in conformity wc\ith a training program approved by such
ag~elc-y, until and unless such certificate is revoked.
(b) The tcenul "Apprentice as used herein shall mean a person of
at least sixteen (16) years of age wvho has entered into a written con-
tract with an employer or an association of employers and which
contract provides for at least two thousand (2,000) hours of reason-
ably continuous employment for such person, and his participation
in an approved program of training as h~ereinabove provided.
SECTION 2. Demonstrators and necessary transportation for busi-
ness purposes shall be furnished by the employer, without cost to the
employee, or the employer shall make a reasonable allowance for suchn
demonstrators and business transportation if the employee furnishes
the same at hnis own expense.
SECnTow 3. MTechanical shops or departments may employI not more
than one (1) artisanl's helper for each, two (2) qualified mechanics
or artisans employed by such shop or department (except that wPhen

suchi shop or depar1tment.t caln ists of only one (1) quallifidc l mrchanicli
or ar~tisnl, onec (1) artisan's helper may15 be! employS~al)); andi may em-
ployS not mlorec than onet (1) per1so.n who is anl appren~ticve for conehl twvo
(2) qua;lifidc mlehanliCS or artisalnsi emplloyedt by mI~~h1 shop or dlepar~t-
SCEenox I 4. Paint shops or deparlltments nIn~y emp~loy not more than.
twoc (2) artisans' helperst~' for each ar~tison employed in such. shop or
de~par~tmle nt and1~ nIn~y employ not nIoreI' than t~wo (2) pe~r.ons who
are apprenticesti~ for echcr artisan e3mployed~ by such shop or decparlt-

SEenox-, 5. Beg~innerIs or leanlers~ in other than mchan~iricall depart-
mlents shall be limlitedl to not more than tenl pelr:Cent. (10%0) of the
emlployedd pe~rsonnel in any suchn deparltment, except that depar;lltmel.nts
emlployingr less than ten (10) w~orkiers may have one (1) such ~beginl-
ner or lea rner1.
Seenxci 6i. Emp~~loyme~nt rFc~ollrds of apprentices shall be filed with-
the T~err1ito~rin Code A-?uthoritly.
CEC.TIONr 7. No member of the Industry may be perm~littedl to clas-
sify either owners or employees as executives for th-e purposeic of
caiming exemptions from the mnaxim~ulm hour provisions of this
Code, except as follows:
(a) Sales or service bus~inesses~ or depal~rtments thereof shall not
be permittedl to classify as executives morel't than1 one (1) in each
sulch business or department thereof, wherein are employed less~ than
eight (8) emplloy~ees; and nro more thlan two (2) in organ;izationss
of from eight (8) to ~ixteen (16) and so on in the samelt ratio.
In calculatingr the number of employed1 person'nell part-timer em-
ploye~es must be cconsidered~c- only as their part-time employment~ll is
in proiportion to full time, i. e., two (2) half time employees wRould
be coulntedl as one (1) empllloy'ee
SECTION 8. (a) Employees shall have thle right to organize and
bIarga;inl collc-tively through I representativesive of their own c~hoosing,,
and shall be free from the inlterlference, restraint, or coer~c~ion of
empl]loyers of labor, or thlei~~r agnts, in the des~iglnation of such1 re~r~e-
rsentatives or in se.lf-organizat ion, or in other concerted nectivitieis
for the purpose" of collrc~tiveo bal~rgainin or other mul~tuall aidl or
(b) No emp~loyece and no one eeking mpnloymePnt shall be requ~iredl
as a c~ond~ition~ of employment to join any company umion or to
refrainl from joininei~, organnizing, or ass~istling a labor orgalllintiztio
of h~is owPn choos,(ing~.
(c) Employers shall complly wvith the max;iunni hou)lrs of labor,
mlin0inannll rates of payv and(I other conli t i ons of employmeln t, app~rovedl~
or precrribedt by the PVres~ident.
SI~crnes 9. Employers,1~ as a condition of employment, shall no~t
Ireqmeile thc p~urchase~ls of any merecluxlisei~ or er~vices~ by any emloy~~lcee;
burt if suc~h mcrchandisei;t or service! is pur~chased~~ the suployer,! shalll
have the right to make1\~ pa;yroll dedCtll'ions1 thforif~l' providled thle
w\ritten conse~nt of the empiInvriee is obtained.l
SiErnerls 10. EverCIy ('11.Empl'e sha1:ll providee for the safety and
health of emnployees duringr the hours and at the pllaces of their
emlomet.Standlrlds of safety and health shall be subnulltted2
by the' Ter~ritorial Codle Authority to thle Boar~d within three (3)
nionths after the effective dlate of this Code.

SECTION 11. -CjO person under eighteen (18) ;years of ag~e shall be
employed in the Industry in hazardous occupations. No person
under sixteen (16) years of age shall be employed inl the Industry
in any enpa~city.~ A~ny employer shall be deemed to have complied
with this provision as to ag~e if he shall have on file Ya certificate(
or permit, duly signed by the A~uthority in the Territory of HKawaii
empowered to issue employment or age certificates showing that the
employee is of the required age. Within thirty (30) days after
the approvlc> 1 of this Code the Territorial Code Authority shall
furnish to the Board a list of hazardous occupations within the
meaning of this Section.
SECTION 12. Employers when furnishing meals or lodging to em-
ployees, shall not make more than a reasonable charge against the
wage or salary of such employee therefore. The maximum amounts
which mary be so charged shall be determined b~y the Territorial
Code Atuthority, subject to the approval of the Board, and upon
approval of the Board the employer shall be permitted to make
payroll deductions therefore. No full-time employee, except an
apprentice during the first year of his apprenticeship, shall be
charged more than one-half of his wages for meals and lodging
and in no event shall he be obligated to accept such perquisites
in lieu of cash wages or be required to lodge or board wiith his
employer as a condition of employment.
SECTION 13. No employer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge so as to
defeat the purposes or provisions of the Act or of this Code.
SECTION 14. All employers shall post and keep posted copies of
the Labor provisions of this Code in conspicuous places accessible
to all employees. IEvery member of the Industry shall comply with
aill regulations and rules relative to the posting of provisions of
Codes of Fair Competition which mary be preslcr1ib~ed from time to
time by the Board.
SECTION 15. Within three (3) months after the approval of this
Code, the Territorial Code Authority shall investigate and report to
the Board a propos-ed schedule of hours during which the members
of the I~ndustry shall carry on business. Upon approval by the
Board, such schedule shall become a part of this Codae for the Indus-
try in the county concerned.
SECTION 16. No prov,\ision in. this Codte shall supersede an~y Terri-
torial or' Federal law which imposes on employers more stringent
requilcl1rement as to agre of employees, wages, hours of work, or as to
safety, health, sanitary or general working conditions, or insurance,
or fire protection, than are imposed by this Code.
SECTION 17. No employee shall be discharged, dlemoted, or othler-
wise <1i';..'riminat1ed against by reason of matkingr complaint or giving
evidence with respect to an aIllteged violation of any Code.


SECTION 1. (a) WC~ithin sixty (60) dalys aft~r the effective day of
this Code there shall bie constituted a Territorial Code Authority con-
sisting, of I~ eigh (8) members L to b elc~tedl a follows:

Three (8) shall be elected by the memberscl of the Ass~~ociation on
the Island of Oahu;
One (1) shalll be electedl by the mlember~ls of thle Ass~ociationl onl the.
Island of Mninu;
Onle (1) .shall be~ elcted- by the member~ls of the Ass~c.iation on the
Island of Kuuai3;
Onte (1) shall be elected bly the memnber1s of tlhe Assc~ciation on the
Islandl of H~awaii; and
Twro (2) shall be elected by members of thle Industry, not membel~rs
of th~e AssoCiationl, or failing suchl election, such mmcnbe~rs shall be
a~ppointed~ by the Board from a list submitted b~y non-memberslc; of the
Associationn. or, if suchl a list is nlot submlitted, the BEoard shall
appoint from~ mlembler s of the Industry who are not m~embers of the
Association, such memrbersr of the Territorial Code Authority.
The election shall be held at a meetings or meetings~ called by the
Temnpornr~y TIerr~itor~ial Corde Authority, upon tenl (10) days' notice
sent by registeredl mail to all known memllber~s of the Indlustr~y who
may vote, either in person, by proxy"S or by mail, each member of the
Industry being entitled to one vote. TIhe mnembersl of the Terri-
tor~ial Codle Authority first elec~ted shall serve until their sulcc~essors
are electedc. During sulch sixty (60) day period, until such Terri-
torial Code Authloritiy has been so constituted, the Committee of the~
groupl or association sponsoring this Code shall constitute the Temn-
porary Territorial Code A2uthority.
(b) WT"here a vacancy occur11s in the mlemberhl~hp of the Terr~ito~rinI
Code Aiuth~ority, such. vacancy shall be filled by the maJ ority vote of
the recmakiing Colie Authority mem~lbers, provided that such vacancy
is filledr by a representative from the same group as waTs the vacating
(c) In addition to the memnber~ship as above providled', there may
be o~ne (1) members without vote, and without expense to the In-
duStr~y, to be knowcPn as the Adlminisitration m~embe~r, to be appointed
by the Board, to serve for such term as it may specify.
S~eemIcs 2. Each trade or indusltr~ial association clircctly or indli-
rectly participating~r inl the selection or ac~tivrities of the Terr1itor~ial
Codle Aruthorit sihall, (1) impose no ineq~uitablbe restrictions on memn-
berhip an () submit to th~e Board true copies of its articles of
association, by-laws, regulations, and any amndmentlll~l S when mande
thereto, togerrther writh suchI other informal~tion as to mlemblIershtip ,
organization,i andi activities as theu Board mnay deemi necessary to ef-
fectuate the purposes of the. Ac~t.
SECHlONc 3. In ordel~lr that the Terlritoriall Codc Aulthorit~y shall at
all times be trully' represC~entativi\e o the! nIndusty and in other respects
complly with the provisio~n6 of the Act, the Board' 1 may prescr~ibe such
helr~ing~s as it maiy deeml p~roper; and theren~:fter if it shall findl that
the TerrIitor~ial Code A~uthlority is not truly replresenrtative or does
not in other respects compn~ly with the roin of the Alct, mafy re-
quire an appropriated Ilnowlifieation of the~ Te~rritoriail Code Auithority2".
SECTION 4. Natflilmyr Contaf;inedI in this Code~t shall con~lstitulte th
membelrs of thle Terr~itorial Colie Authority partners for~l anS pur-
pose. Nor shall anly mlemlber of the Te~rritoriall Codle Aulthlority be
liable in any mainrner to s\anyoe for any act of aniy mother member,
officer, agent or emp-loygee of thle Territoriall Code Authlorityg. N'or

shall any member of the! Territorial Code Authority, exercisinga rea-
sonable diligence in the conduct of his duties hereunder, be liable
to anyone for any action or1 omission to act under this Code, except
for hiis ow-n wilful mlalfeasanlce or non-feasance.
SECTION 5. If the B~oard~ shatll at ainy timle dtetermline that any
action of the TIelrritorial Codce Authorityr or anly agenclliy thereof may
be unfair or unju~st or contrary to the public interest, thre B[oard may
require that such action be suspended to afford an opportunity for
investigation of the merits of such action and further considera~tio-n
by such Territorial Clode Authority or agency pending final action
which shall1 not be effective unless the Boar~d approves or unless it
shall fail to disapprove after thirty (30) days' notice to it of inten-
tion to proceedl wFith su1ch action in its original or modified form.
SECTION 6. (aZ) Subordinate to the aTer1t~rioral Code Authnority
established in Se~ction 1 of this Article, there shall be constituted
County Code Authorities for those counties of the Territory, where
in the opinion of the Boardl, the Territorial Codle ALuthority will
require assistance of a regional group in its duties of investigation,
fact-findting, education and research. Memblllers of the County Code
Authorities shanll be elected in a manner. satisfactory to th~e Board,
by the Industry at large, in the county where they are to serve and
shall be truly representative of the Industry in that county.
(b) In addition to membership on the County Code Authority as
above provided, there mnay be one (1) nwmb~ller, without vote, and
without expense to the Industry, to be known as the Adiministration
member, to be appointed by the Board to serve for such, termn as it
mnay specify.
SECTION 7. Powoers andr Duties.--Subject to such rules and regula-
tions as may be issued by the Board, the Territorial Code Authority
shall have the following powers and duties, in addition to those
authorized by other provisions of the C~ode.
(a) To insure the execu~tio-n of the provisions of this Code and
to provide for the compliance of the Industry wclith the provisions
of the Act.
(b) To adopt by-laws and rules and regulations for its procedure.
(c) To obtain from members of the Industry such information
and reports as are required. for the administration. of the Code. In
addition to information required to be submritted' to the Territorial
Code Aiuthority, members of the I~ndusitry subject to this Code shall
furnish such statistical information. as the Board may deem neces-
sary for the purposes recited in Section 3 (a) of the Act to such-
FEi'dcerazl and Territorial agencies as it may designate; provided that
nothing in thiis Code shall relieve anly member of the Indlustry3 of
anly c-xsist in ol'(11i ga~t ions to furnish reports to any government agency.
No individual reports shall be disclosed to anly other mlrnember of the
Industry or any other party except to such other governmental's as mnay be directed by the Board.
(d) To use such trade associations and other agecncies~ as it deems
proper for the carryiing out of anyi of its activities provided for
herein, provided that noth-inglb herein shall relieve the Terr~itorial
Code Authority of its duties or responsibilities under this Code and
that such trade associations and agnc~ies shall at all times be subject
to and comply with the provisions hereof.

(e) TIo mak~e recommendations to the B]oardl for the coordlilnation
of the administration of this Code and such. othler Code~s, if anly, as
may be related to or effect, members of the Indlu try.
(f) To cause to be formllulated~ methlods of ceast findm~ and11 ac-
counting cazpable! of' use bSy all mIl~llembes of the Indul~stry, and to sub-
mit such mlethods to the ]Boar~d for rev\iew. If appr,~oved~ by the
Boned~, full information concerning such miethiods shiall be made
available to all mllllember of the Indust~ry. Th~erenfter, echll member
of the Indu~str~y shall utilize such methods to the extenlt. found prancti-
cable. Notohing hzerein co~ntainedt shall be construedl to permit thae
Territorial Codetl Aulthor~ity, any agent thereof, or alny member~~ of
the! IndustryS to suggest uniforml addl~itiorns, per~centages or differ~en-
tials or other uniformly items of cost which are designled to brlinlg aboult
arbitrary uniformity of costs or prices.
(g) (1~) It being found necessaryS in. order to support the admninis-
tratio~n of this Codl~e and to mlaintain the standards of fair comlpeti-
tion establishled- h~er~eulnder and to effectuate the policy of the ~Act, the
Territorial Code Authlority is author~izedt:
(a) To" incur such~ reasonable obligations as are necessary anld
p-ronpr for the foregOingr purposes and to meet. such obligations
out of funds which may be raised as hereinaf~ter provided~t and
which shall be held inl trust for the purposes of the Code;
(b) To submit to thie Boar71d for its approval, subject to sulch
notice and opportunity to be healrd as it mnay deemn necessary, 1
an itemized budget of its estimated expensers for the foregomg~
purposes and (2) an equitable basis upon which the funds neces-
sary to slpp>ort such budget shall be contributed byT members of
the Industrly;
(c) Alfter such budget and basis of contribution have been
approved by the Board, to determine and obtain eqluita-ble con-
tribution as above set fourth by all mem~er~s of the Ind~ustr~y,
and to fhat endt, if necessary, to institute legal proceed~ing~rs
therefore in its own name.
(2) Eabch. member of th~e I~ndustry shall pay hris or its equitab:le
contributions to the expenses of the maintenance of the TerrIitorialn
Code Authority, dletermined as hereinabove provided, and subject
to rules andl regulaltionl Ipertninincr thlereto issued by the Boarrd.
Only members of the Indulst ry complying with the Code aInd conrtrib-
utina to thre expenses of its ad'ministration as hereinabove provided
unlesss duly exemnpted from making such contributionn, shall be
entitled to participate in the selection of memiibers of the ?'~~Ter-ritoil
Code Aulthority or to rceivei~ the benefits of any of its vonlun~tary
activities or to maktc ulse of anyr emlbleml or insig~nia of th~e Nationali
Recov\e r~y A~ hnini r st rant i on.
(3) Thc Trclritoriall Codce Aulthority shall necith~er inculr nor payy
any ob\liga7tio~n subsl~~ tantially inl eSeSS of the~ amountlll fthereof as
estimafted~ in its app~rovedl budget; and shall in no~ event exceedl the
total amoulnt connta ined in the ap~pro~ved burdget, except uplon approval2
of thle Bnnid; an<1 no cltsubsequnt budg'let shanll contain any deficiency
item for expenditures in excess of prioir budget estimaites except
those whlich the Boardc shall hav\e so alpprovcd.
(h1) To recomme~ndln~ to the! Boardt alny aIction or me~nsiure s dlteemed
ad visa ble, i ncludi ng further fair trade practice provisions to govern

members of the IndustryT in their relations with each other or with
other indll-t ries; Ineasu~lres for industrial planning, and stabiliza-
tion of employment; and including modlificatioons of this Code which
shall become effective as part hereof upon approval by the Board
after such notice and hearings as it mray specify.
(i) To appoint a T1radce Practice Committee which shall meet
with the Trade Practice Comnmittees appointed under such other
Codes as may be related to the Industry for the purpose of formu-
lating fair trade practices to govern. the relationships between em-
ployers under this C'ode and under such other Codes to thne end that
such fair trade practices may be proposedt~c to the Board as amend-
ments to this Code and such other Codes.
(j) TPo pr'ovidle appropriate facilities for arb.itraltion, and subject
to the approval of the Board, to prescribe rules of procedure and
rules to effect comp~liance w'ith awards and de~terminattions.
SjECTION 8. Each member of the Industry shall keep accurate and
complete records of its transactions in thne Industry whenever such
records may be required under anly of the provisions of this Code,
and shall furnish. awara11te reports based upon such records concern-
ingr any of such activities when required by the Territorial Code
Authority or the Board. If the T'erritorial Code Authority or the
Board shall determine that substantial doubt exists as to the accu-
racy of any such report, so muchn of the pertinent books, records and
papers of such member as mnay be required for the verification of
such report may be examrined~ by an impartial agecyl3 agreed upon
between the Territorial Code Authority and such member, or, in the
absence of agreement, appointed by the Board. In no case shall the
facts disclosed by such examination. be made available in identifi-
able form to any competitor, whether on the Territorial Code Au-
thority or otherwise, or be given any other publication, except such
as may be requcllired~ for the proper administration or enforcement of
the provisions of this Code.

SLLECTHrl IN 1 Inaccurate Aldvertising.--No member of the Industry
shall publish advertising,, (whether printed, radio, display or of any
other rnature~) which is mnisleadingr or inaccurate in any mante~ial
particular, no~r shall anly member in any7 way misrepresent any goods
(includingr but. without limnitation its use, trade-mnark, grade, quality,
quantity, origin, size, substance, charnectcer, nature, finish, material
content, or preparation),' or credijt terms, values, policies, services,
or the nature or form of the business conducted.
SECTION 2. Pair 88 Eilin g.--No member of the Indiustry shall
krnowaingly withh~old from or insert in any quotation or invoice any
statement that makes: it ina~ccura;te in any material particular.
SECTION 3. Ill,:!,uratelf L~abelling.-No member of the Industry
shall brand or mark or pack any goods in. any manner which is in-
tendled to or does deceive or mislead purchasers with respect to the
brand, g~ra~de, quality, quantity, origin, size, substance, character,
nature, finish, material content or preparation of such. goods.
SECTIIONJ 4. Defanzati'on.-No member of the Industry shall defame
a competitor by falsely imputing to him dishonorable conduct, in-

ability to perform contracts, quecstionlable credit standlringr, or by other
falue representationic~rl or by falsely dlisparaginlg the grade~lc or equality
of his good~s.
SECTIOIN 5. Threats of Law Suits.--No mnemnber of the Industryl'
rhall publlishl or circulate unju~stifiedl or unw~arranlted thlrelts of legal
p`o'ceedin(s which tend to or have the effect of hiarassin compe~l~ ,~titors-
or intimidiating~ their cusltomerls.
SECTIO0N 6. rSerlicrt Re~bate~s.-No member of the InldulflSt shall
secretly offer or mcak~e alny payme-~nt or allowance of a rebal,;te, ref~undr,
(munliision credit, uneurnedc l discount or exc~ess allow-anlce, whether in
the forml of mloney or otherwise, nor shall a mlllembe of thle Industry
secretly offer or extend~ to any customer anly specciall service or privi-
lege not extendecl d to all customers of the same class, for the purlpose
of infllluencing a sale.
SECTIrON 7. Bribing Eminployees.--No member of the Industry .shlllt
give, permit to be gilen1, or offer to give, anything of value for thre
purpose of influencing or rewarding the action of anyT employees,
agent, or representative of another in relation to the bui~ness of the
emplol~cyer of su~ch emlployee, the principal of such agenjlt, or th~e reprel~-
senltedl party, without the knowledge of such employer, principal,
or party. This prov~\isionl shall not be const:~rued to pr'ohib~it fre3
undlt general disctr'ibutiionl of articles commnllonly used for ad2ver~t;iling
ExSCeplt so far as such articles are Ic~tua~lly used for conunerI!C'i al br~iber~y
as hereinab.ove defined.
SECr1~ow 8. lInduring~l Breach of Contra~ctc.--No member of thle Ins-
dtustry3 shall wilfully inlduce or aIttempt~ to induce the breach of exsisl-
lng contracts between competitors and their censtomersl by atny false
or deceptive means, or interfered with. or obstruct the perfo:, 111rmacec of
any suchl co-ntractuall duties or services by such means, w\ith thle pur-
pos~e andi effect of humperlcing, injuring, or emlbal~l;.rrasin compctitr
in their bus~iness.
~SECTIO)N 9. Selling on Consign~ment.-Within sixty (60) daLYS aICIr
the effective dante of this Code the TCerritorial Code Authoritly .shall
submit to the Board the conditions, if any, under -which- -Ielline on1
cosnsigrnmntc l shall be prohib~ited. Upon approval by" the B~oard- o~f
such c~ondcitions, selling on c(-ns~iigrlnment under~l suceh clondition,l, shall
be a violation of this Codle.
SECTION 10. Coercion.-Nlio memllber! of th~e Industry shall requ~ire
that~ the purllchalse or please of any goodsl be p~rer~equisite to thle purI1-
chas~e or lease of any other goods.-~
SECTION 11. SaL77( Of D2c11orinORIF/OTrr.-- N~O Yell i cle shall be cla.! 04(I
as a (" demoicnst rator "' for the puiripose of sellingr below thle file: prices
of new vehiicles of the minie make aInd class until it has hl:ll 3,500
miles of actuall road usa~ge, or until the ma1unufuctu1lr~er has nua~lle~
announcement of a chlangre in model1' inl the paritic nine m!ake and~ c~la~ss
of the vehicle Veh~icles so~ld to empllloyees for IIe( in the~ir
emlployer~'s hu~siness~ as demnonstrators or txcu~~tives'' cars, azndl ear-
ulsedl as demon cntrators by members~~l of the Indlustry, must be so reeL-
isterred with the Coulnty Code~ Aiuthority within whlose j~uri-dic~tionl
the vehicles is fihbitalllly uscd. Failure so to regis~:teri shall const~itute~
an unfair tradce practice.

Iirequiredt b subsection1 7 (c) and Sectionl 8 of Article VI of this

Code, or to present such records for inspection as therein required,
constitutes an unfair trade pralictic.
SECTION 13. 3/18tlse of BuyinLg Potoer.--No member of the In-
dustry shall extend to an employee or anyT other person the advan-
tagre of his buying power; or grant or offer to grant to any person
the advantage of another person's buying power, whviereby any seller
of merchandise or ,serlvice might be deprived of his legitimate profit.
SECTION 14. Lotteriecs, Prizes, Etc.--No member of the Industry
shlall employ any lottery, prize, wheel of fortune, or other gaame of
chance in connect-ion with- the sale of any merchandise or service.
SECTION 15. Albsorbiiing Tere.l.~-No member of the Industry shall
absorb, or offer to absorb, any Territor~ial or Federal tax intended
to be: paid by the consumer.
SECTION 16. Coupon1Z BookZs andl Scrip.--No member of the In-
dustry shall sell or redeem coupons or scrip of anly nature at a dis-
count in connection with the sale of any merchandise or service.
SECTION 17. Fa 88 Olaim~ of Mesobelrshiplr in Trade Assoc~iation1.--
No member of the Industry shall claim, by: advertisement or other-
wise, that he is a member of a trade association, when he is not in
fact a member thereof.


SECTION 1. Open PDrice.--(a) Each member of the Industry shall
file with a confidential and disinterested agent of the TIerritorial Code
Authority or, if none, then with such an agent designated by the
Board, identified lists of all of his prices, discounts, rebates, allow-
ances and all other terms or conditions of sale, hereinafter in this
Article referr~ed to as price terms ", which lists shall completely
and accurately conform to and. represent th~e individual pricing prac-
tiecs of said member. Suchz lists shall contain the price terms for all
such products of the Industry as shall be designated by the Code
Authority. Said price terms shall in the first instance be filed within
sixty (60) days after the effective date of this Code. Price terms
and revised price terms shall become effective immediately upon
receipt thereof by said agent. Immediately upon receipt thereof,
said agent .-hll;1 by telegraph or other raliually prompt means notify
Faid member of the time of such receipt. Such lists and revisions,
with thle effective time thereof, shall upon receipt be immediately and
s~imu~ltaneously distributed to all members of the Industry and to
all of their customers who have applied therefore and have offered to
dlefr~ay the cost actually incurred by the Territorial Code Authority
in thle preparation, and distribution thereof and boe available for in-
spection by any of their customers at the office of such agent. Said
lists or revisions or any part thereof shall not be made available to
anly perso-~n until released to all members of the Industry and their
customers, as aforesaid; provided, that prices filed in. the first in-
stance shall not be released until the expiration of the aforesaid

SStaedSet-Be paragraph 2 (3) of order approving this Code.

sixty (60) day period after thze ffective dalte of this Code. Thle
Codle Authilor~ity shall maintain a permanenll~lt file! of all price terms
filed as herein provided, and shall1 not clestr~oy any part of such ree-
ords except upon written consent of the Board. Upon req~uest the?
Territorial~ Codec Authority shall f~urnish to the Board or anly duly
desiignautedt agent of the Boatrd copies of any su(h lists or revisionls of
p"'rie terms.
(b) When any mlembercl of the Industry has filed any rev~ision, such
member~tl shall not file a higher price within forty-eight (48) hours.
(c) No member of th-e Indu try3 shall sell or offer to sell any
products of the Industry, for which price terms have! been filed
p'ur'suat to the provisjions~ of this Article, except in accorda~nce with
such price termlls.
(d) No memb~ler of the Industry shall enter into any agreement,
understanding, combination or conspiracy to fix or maintain price
term<11, nor cause or attempt to cause any member of the Industry to
changel~ his price terms by the use of intimidation, coercion, or any
other influence inconsistent w~ith the maintenance of the free and.
ope3n_ malrkeit which it is the purpose of this Article to create.
S~c-rmoru 2. Costs and Price O~utti'ng.--The stalndards of fair com-
peitio;l n for t-he Indusltry with re~fe~renceli to pricingr pra'ctfices are
declared to be as follows:
(a) W~lfully dtruct)IItive price cuttingf~ is an unlfairf method of (com1-
p~etition and is forbidden. Any member of the Industry or of any
otherl Industry or the cusltomersl of either mnay at a~ny time compnl~ninl
to the! Code Authority that any filed price constitutes unfair compe-
tition as de~strulctivec price cutting, imperiling small enterprises or
tend'ing~ toward monopoly or the impairment or code wages and
working conditions. Thle Territorial Code Authorityr shall within
five (5) days afford an opportunity to th~e melmber filing the price
to answer such complaint and shall within fourteen (14) days make
a ruling or adjustment thereon. If such ruling is not concurred in
by either party to the complaint, all papers shall be re-fe--rr1ed to th~e
Reesearch andC Planninga Division of the Natio~nal Rec~covery Adml~iniis-
tration which shall render a. repor-~ t and recommndatiol~~i n therIeonl to
the Board.
(b)l WCEhen no dered~r~r~ emergency-c~ exists as to an~y given product,
thecrle is to be no fixed minimum basis for pi,ces. It is intended thatlt
(oulnl' cost e-tima;-ting~ melthodls should~ be used and that consideration
should be give~n to costs in the dcterm~ninattio in of prlic'ingt porlicies.
(c) When an emrg~cency exists as to any given pr~oduict, sale
blwthe stated~ minimum price of such product, in violat~ionl of
Section 3 hereoaf,, is forbidden.

tigationl shall at, any thusl find both (1) that an emergency'1('3 has
ar~iseln ith~in the Indu~str~y adverse~tly affercting( small e~nterprisei~ js or
wagres or Inbor c~ondlitioins, or tening~ii townedT monopoly,1,. orther
acute condrit ionls which tend to de fent th~e purposes of thne Act;
and( (2) that the determlnnicnato of the stated~ minimumii price for a
specified product w~ithin thle Industryg for a limited~ period is neces-
sary to mitigate the condi~itionls consltitutingI such emecrgency and(
to fertleetuat the purposes of thle Act, the Terr~itoriall Code Authority

mayn cause anl impartial agercncy to investigate costs and to recommend
to the Board a, determination. of thie statedt minimum price of the
product affected by the emelcrgency\ and thereupon the Board may
proceed to dtetermline such sLtat(d lnummum pnice.
(b) Wrlhen the ]Board shall hanve de-termindc~ c such. stated minimum
price for a specified product for a stated period, which price shall
be n o-olllnably calculated to mnitigate! the conditions of such emter-
grency and to effectluate the purposes of the National Industrial
Recovery Act, it shall publish such price. T~hereatfter, during such
started periodd, no m~emlber of the Indunstry shatll sell such specified
products at a net r~ealizedl price below said started minimum price and
anyv such sale shall be deemned dest~4ructive price! cutting. From time
to timle, the Terr1itor~ial Code Authority maliy recommend review or
r~econsideration or th~e Board maly caused azny determinaztions here-
under to be reviewTedl or retic-ns~ide red and appropriate action taken.

Nlo provision of this Clode relatingf t~o prices or terms of selling,
shipping, or mark]eting. shanll apply to export trade or sales or ship-
mnents for export trade. Export Trade shall be defined as in
the Ex~port Trade Ace t aoptedl April 10O, 1918.

Se~Pcrioh' 1. This Code and all the provisions thereof are exrpretssly
mladet subject to the right of the~ President, in accordance with the
provisions of sulllnctio n (b) of Section 10 of the Act, from timne to
time to cancel or mlodify anly order, approval, license, rule, or regru-
lation issued under Title I of said Act.
Secrl-ox 2. Such of the provisions of this Code as are not required
to be included herein by the Act ma~y, with the approval of the
Board, be modified or eliminated in such manner as may be indicated
by the needs of the public, by changes in circumstances, or by exper-
ience. All the provisions of this Code, unless so modified or elimni-
na~ted, shall remain in effect until June 16, 1935.


NTo provision of this Code shall be so applied as to permit monop-
01ies or monopolistic practices: or to elimninate, oppress, or discrimi-
Inote against small enterprises.

W~hereazs the ptolicy of the Act to increase real purchasing powerl
will be made more dliffilcltl of can unnoullll~tionl if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases, except such as may be reqluiredl to meet individual cost,
should be delayed, and when made, such1 increases should, so far as
possible, be limited to actual additional increases in the seller's



This Code1~ shanll become effective! thirty (30)) da~ys after the late
of approv"\al thezreof.3

Regristry N'o. 1724-41.
See pa3rag~rash, 2 (2) of order approving this Code.


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