NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
CARVING, AND TURNING INDUSTRY
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents
Approved Code No. 260
Registry No. 315--02
AS APPROVED ON FEBRUARY 5, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
This publicntion is fo~r sale by the Sup~erintendent of Documents, Government
Printing Office. Wa'shington,, D.C., and by district offices of the Bureau of
Foreign and Domestic Commlerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Offce Building.
Birmingham, Ala.: 257 Federal Building.
Boston, 111ass.: 1801 Customhiouse.
Buffalo, N.Y.: Chiamber of Commerce Building.
Chlarleston, S.C.: Chanmber of Commerce Building.
Chicago, 1I.: Sulte 1700, 201 North Wells Street.
Clevehind, Ohio: Chamber of Commerce.
Dutllas, Tex.: C'hamber of Commerce Building.
Detroit, M~ich.: 801 First National Bank Building.
H~ousto~n, Tex.: Chamber of Commerce Building.
Indiannapolis, Ind.: Chamber of Commerce Building.
Jacklsonville, Fla.: Chamber of Commerce Building.
K'ansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Mlemphlis, Tenn.: 220 Federal Building.
Miinneapolis, RIlinn.: 213 Federal Building.
N'ew Orleans, La.: Room 22EA, Culstomhouse.
New York, N.Y.: 734 Customhouse.
Nor~folk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburghl, Pa.: C'hamber of Commerce Building.
Portland, Oregi.: 215 New Post Office Building.
St. Louis, M~o.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Battle, W'ash.: 800 Federal Offic~e Building.
Approved Code No. 260
COD)E O1F FAI[R COMPETITION
ORNAM[ENTAL; MIOLDING, CARVING, AND
As Approved on February 5, 1934
APPROV'ING CODE) OF FAIR COMPETITION FOR. THE ORNAMENTAL
1\IOLDIN0C, CARVING, AND TURNING INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of T]itle I: of the ~National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Ornamental Molding, Carving, and T'urning
Industry, and henrings having been duly held thereon1 alnd thne an-
nexed report on said ~Code, containing findings with respect thereto,
having been made and directed to the ]President:
NOWV, THEREIFORE, on behalf of the! President of the United
States, I, Hugh~ S. Johnson, Admrinristrator for Industrial ]Recovery,
pursuanlt to authority vested in me by ]Executive Orders of the
President, including 1Executive Order No. 6543--A, dated December
30, 1933, and otherwise~; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote! the policy and pur-
poses of said title of said Act; and do hereby order that said Code
of Fair Comp~etition be and it is hereby approved; provided, how-
ever, that the p~rovisions of Article VIII (Section 2), insofar as they
prescribe a waiting period between the filing with the Code Author-
ity and the effective date of revised price lists or revised terms and
conditions of sale be, and they are hereby, stayed pending miy further
Order either within a period of sixty days from the effective date of
this Code or after the completion of a study of open-price associa-
tions now being conducted by the National ~Recovery Admninist~ration.
Huannc S. JoZ3NSON,
Admzilistrator for Industr~ial Recovery.
Approval r~ecolnuenlded :
W1. ~A. H4RRnrNin,
February 5, 1934.
38142 *---376--8---3P (205)
REPORT TO THE PRESIDENT
The hite~ Housae.
SIR: This is a report on the- Code of Fair C~ompetition for the
Ornamental Mlolding, Carving, and Turning Industry in the United
States, the hea~;rinlg being condiucted in WVashingi~ton. D.C., on Decem-
ber 13, 1933, in accordance woitlh the provisions of the National
I~n(dustr'ial Recorverya Act.
PROVISIONSI ON HIOIRS ANrD WAGES
The maxlimumlll hours p~rovided in thiis Code for employees are
fort (40) h~ours per wPeekr and eight (8) horsl per dlay. WThenl pro-
(luct'ionl demandlllS it, a tolerance of five hours per week is allowed
prIovidedt the forty (40() hiouri per week average in each six months'
Emp1loyeesi engageLrd in emrrllgency maintenance and repair work are
excepe d from\\~~ hou rly n limitations under prescribed conditions and
are lloed aoneandone third overtime rate of pay. A tolerance
or~ften (10) plercenit is allowed for firemen, engineers, and shipping
crewfs. Waltchmeln and night firemlen ar~e ptermlitte~d to w~ork forty-
eigh't (48) hours per wPeek averaged each two wfeeks. Truck- drivers
ar~e maide subject to the provisions of the Code for the appropriate
d~ivision of the Truicking ITndist~ry, when such Code shall hav~e been
approved. The usual exemption is granted to executive and s~uper-
vis~oryS epnloyees r'egulrlyn11 receiving $t35.00 or more per w-eek, to
ouitside salesm~en, and also to designers receiving like compensation.
TIhe nalinilnuml wa~e~ provided for employees in designated southern
terriitory' is thirty (30) centfs per hour and for employees in all other
territories is thirty-foulr (34) cents per hlour.
A~pprentices, the number nottto exceed five (5) percent of the
emnployeesi of any onie employer at anly one timle, may be employed for
a period not to exceed three months at eighty (80) percent of these
Then~lol minium age provided in this Code is 16 years, but in
hazadou occpatons hisage limit is increased to 18 years.
ECONOMIC EFFECT OF THE CODE
Thle vo~lumle of the output of this industry has dropped nearly
TU percent during the depression and approximately 25 percent of
the c~oncernls ceased to operate. There w~as a marked improvement
dlur~ing th~e second half of 1933, but the employment under the
President's Reemlploymlent Agreement. under w-hich practically t~he
enitir~e induistryv operated, was still about fifteen (15) percent less
thanin 120.This is partly- due to the fact that such a large num-
LIr of concerns had ceased to operate altogether. Increased volume
in! par't has meat mnor~e mnan h~ours for those employed, but not anl
iirreased~ number of employees sufficient to absorb all the 1929 work-
ers in this indutr. In viewr of the close relationship between this
industry and the furniture industry it did not seen wise to provide
less hours than allowed for tha~t industry.
Wiith fifteen (15) percent few-er employees than ini 1929 it is not
likely that thle 1929 purchasing -powTer of the! worker~s in this indus-
try as a group> will be r~estoredl by thep wage pr~ovisions of this Code.
A study of thie material available by the Division of Research and
Planning does reveal, however, that th~e averagce purchasing power
of the workler~s will be som~ewhat increased over that of 1929. The
minimum~l w-age specified in the Code is about twelve (12) percent
higher than. the average minimuinm inl 1929 and about thirty (30)
percent higher than the average minimum in June 19r33.
The Assistant Deputy Adminisi~torto in his final report to me on
said Code having found as herein set forth and onl the basis of all
the proceedings in this ma~tte~r:
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Raecovery AcS~t, including
removal of obstructions to thle free ~flow of interstate anrd foreign
commerce which tend to diminish the amount thereof and w1ill pro-
vide for the general welfare by promoting the organization of in-
dustry; for the purpose of cooperta tive action among the trade groups,
by indcnanmanann united action of labor and management
under adequate governmnental sanctions and supervision, by eliminat-
2ng unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid~-
m~g undue restriction of production (except as may be temporarily
requiredd, by increasing t~he consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, b~y improving standards of labor, andi
by oth-erwvise rehabilitating industryr.
(b) Said industry normally employs not more than 50,000 em-
ployees; and is not classifiedl by me as a major industry.
() The Code as appr~oved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limi-
tation Subsection (a) of Section 3, Subsection (a) of Section '7, and
Subsection (b) of Section 10 hereof; and that the applicant associa-
tion is an industrial association truly representative of the afor~esaid
indust ry ; and that said associate ion imposes no inequitable, restrictions
on1 admission to memlbe~rship therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) 'ThTose engaged in other steps of the economic pr~ocress have
not been deprived of thne right to be heard prior to approval of
For these reasons, therefore, this Code has bee~n approved.
Huan~i S. JoEINSON,
FEBRUsARY 5, 1934.
CODEi OF F~AI COMlPETITION FOR THE ORNAMENTAL
MiO~LDING;, CARVING AND TURNING INDUSTRY
ARTICLE I PR'HPOSLES
To effect the policies of Title I of the Nat~ional Indlustrial Recovery
A4ct this Code is estatblish~edl as a C'ote of Fair Comipetition for thle
visionis shall be thie standrllds of fair competition for~ such industry
anid shal l be binding upon every member thereof.
SEC'now 1. Or',name)nta/M~oldlingc. Calirringandlt Turning~ Indusntry--
The term 1"L Ornamenltal M~olding,rr Carving~ and Turning~ Industry "
as use~d herein is definled to miean thle mlanurfacture for. sale of products
commn~l(lly. known as orlnamentnl. cuit. carved, emnbossed or p~resed,
rop'e, head~, mettal-c~ovelered wood, veneer co~ver'ed and comp-osition
mo~ldings; emib(,ssed or pressed wood\, comnposition. fiber, spindle,
multip~le sp~indrle. hRndl ear~ved andll sand blasted ornameinnts or carr-
ings. aic nd arqurtr~y; wood kino~bs and comnposition or fiber knobs
for sale to the radio andl furniture industries; anrd glue dowels, except
as 81uch1 dowels mlayT be specifica~lly included inl thle indlustry? definition
of any\ other Codle app~rov-ed by thle President; tu~ningss and plain
w~ood- molldingilrS for sale to the fu~rnitulre indlustry. The above defini-
tion shanll not include the follow-ing:
(a) Original:works of art earved by hand in ~oo~d from models or
fr~om free-handc dlRirrawing for use as architectural decorations in
bu ild ingrs.
(b) D~imlensio~n stockl as covered by thle Code for the Lumber and
Timlber Prodcluct s In dust ry.
SEC'. 2. Aelanbers of the /Indutrfi!.--The termn miemiber of the
industry includes, blut w-ithout linfitation, any individual or enter-
prise engn~eed in th~e indlustr~y, either as an emlployer or on his or its
SEC. 3. Emlployees.--The term "' employees as used herein
includes~ anyr and all persons engaged in the industry, except a
": member of the industry ", however compensated.
SEC, $. PI'C~iden)t, Act, anda A1dmnilstrator.-- Th terms Presi-
dent ", Act~l ", nd "Administ~rator as used herein shall mean,
respectively, the President of the United States, Title 1 of the
National Industrial Recovery Act, and the Ad ministra tor of
SEc. 5. Association.--The term "L Association as used herein, is
definled to mean the Ornamental Molding, Carving and Turning
Manufacturer's Association, an Illinois corporation not for profit.
SECTION i. rJO employee in the industry shall be! permitted to
work in excess of an average of forty (40) hours per week during
the period prior to April 1, 1934, and each six months' period there-
after but not more than forty-five (45) hours in any one week, except
as hereinafter provided. All hours worked in excess of eight (8)
inz any. oner dlay shall be paid for at one and onle-third times the
regular hourly rate.
(a) F'iremen, engineers, and shipping crews shall be granted a
tolerance of ten (10) percent, in the hours specified above! and
Therefore shall not be permitted to workr in. excess of an average of
forty-four (44) hours per weekr during the period prior to A~pril 1,
1934, and each six months' period thereafter nor more thnan. forty-
ninle and one half (491/2) hours in any one week~.
(b) Emlploy~ees engaged in emergency maintenance and emergency
repair work occasioned by breakdowns in production machinery or
in work; requiring t~he protection of life or property shall be permit-
ted to work: iln excess of an average of forty (40) hours per week and
may be employed more than forty-five (45) hours mn any one week
provided that all hours worked in excess of forty-five (45) hours in
any one week or eight (8) hours in any one day shall be paid for at
one and onle third times the regular hourly rate.
(c) Persons engaged in executive andj/or supervisory capacity
and designers who are earning $35.00 or more per wreekr, and travel-
ing salesmen shall not be subject to hourly limitations of this Article.
Working foremnen are not excepted from the maximum hours speci-
(d) W~atchmen and night firemen shall be permitted to work not
to exceed an average of forty-eight hours per week in each two weeks'
(e) Truck drivers operating on trips normally requiring more
than eight hours, except in cases of unavoidable delay due to break-
down or accident, shall be subject to hours of labor of a code here-
after to be adopted for the appropriate divisions of the trucking
SEc. 2. No manufacturer availing himself of the averaging privi-
lege may use the device of temporarilyy laying off of successive groups
SEc. 3. No employer shall knowingly engage any employee for
any time which, when totaled w~ith that already performed with
another employer or empJloy~ers exceeds the maximnum hours pre-
scribed in th~is ACrticle.
SEC. 4. Where a member of this industryT is a partnership, associa-
tion, or trust, which consists of more than one person, not more
than one indlividual of such partnership, association, or trust, shall
work as an operator in excess of the maximum hours of labor as
herei nbe fore provided.
ARTICLE I~V -WrAGES
SECTION 1. Except as provided in Section. 2 of this Article:
(a) No employee in the State~s of Virgrinia, North Carolina, South
Carolina, Tennessee, Klentucky, Georgia, Floridat, Alabama, Mi~ssis-
sippi, Louis~iiana, Arkansas, Oklahoma, and Texas, and that part of
the S tate of Miissouri south andl west of an air line beginning at
Thayer in Or~egon Count~y to Buffalo in Dallas County, thence
directly west to the KIansas State line shall be paid at less than the
rate of thirty cents per hour.
(b) No oter~c emp~loylee shall be paid at less than the rate of thirty-
OUr tenith per hour.
SEc. 2. Apprel'ntices for a period of three months, which appren-
ticeshiip, period2 shall be served not more than once in a lifetime of
each apprentice, shall be paid at the rate of not less than 80 percent
of the mlinimlum wage rates prescr~ibed in Section 1 of this Article.
The total numbert1 of sulch apprentices at any one time shall not exceed
five percent of the total number of factory workers employed by
SEc. 3. So employee shall be paid a wage rate which will yield
a less wage for a week of forty hours than emlployees were receiving
for the same class of wor~k for thle normal working week of forty-
eighlt houriis ol r over immiedliately preceding June 16, 1933.
SEC. 4. Thlis article establishes a minimlum rate of pay, regardless
of w~hether an employee is compensatedl on a time rate, piecework,
or other basis.
SEC. j. An employer'P shall make payment of all wages due in law-
ful enrirency or by~ negoutiable check th~erefor payable on demand.
These wages shall b1 e e~xempt from~ any payments for pensions, insur-
anice. or sick benefitsi other than those voluntarily pa3id by the wage-
earners, or required by state laws. All employment agreements shall
require that wages; be paid at least at thle end of every two weeks'
pecriodl. salanries at least at thie enld of every mnont~h, and that no
employee' shalll withhold wages due.
ARTICLE V--GENERAL LABOR PROV.ISIONS
SECTIO)N 1. No person under sixteen (16) years of age shall be
emiployedl in the industry nor anyone under eighteen (18) years o~f age
at operations or occupations hazardous in nature or detrimental to
health. The C'ode Auithority shall submit to the Admninistrator with-
in thirty (30~) dlays after t~he effective date of this Code a list of such
occupations. In' any State an emplloyer shall be deemed to have
complied w~ithi this provisions if he shall have on file a certificate or
p~ermit dully issued byr the Author~ity in sulch State empowered to issue
employment or age certificates or permits. showing that the employee
is of t'he required age.
SEC. 2. Employees shall have thle right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the inter~ference, 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
collectiv-e bargaining or other mutual aid or protection.
SEc. 3. N'o employee and no one seeking employment shall be
required as a condition of employment t~o join any company uniion or
to refrain from jom~ing, organizing, or assisting a labor organization
o~f his own choosing.
SEC. 4. Employers shall comply with the m~aximum hours of labor
minimum rates of pay, and other conditions of e~mployment, approved
or prescribed by the President.
SEC. 5. WTithin each State this tide shall not super~sede any Inws
of such States imposing more stringent. requirements on emp~loyers
r'egulat~7ing thne age of emnploy-ees, wages, hours of w\ork1, or1 health,
fir~e, or general working conditions than under this Code.
SEC. 6. No employer shlall reclassify employees or duties of occupa-
tions performed for thie purposes of defeating the p~r~ovisioni; of the
Act or of this Code.
S~c.r 7. A Iperson wlhoseP earlnin capacity is limlited because of age
or physicafr or mental h~andlicap may be employedt on. ligrht wotrk at a
wage below the minimum estab~lish~ed by this Code if the employer
obtains from thie State Anth~ority designated byh ~~ te Uplynitd Sate
Department of Labor a, cer~tifiente autho?zrizighseplyeta
such wa~cges andi for such hours as shiall be stated in the cer~tifiente.
EIc~h employer shall file wTith the Code Authocr~ity a list of all such
persons emnployed by him.
SEc. 8. Each employer shall post in conspiiculous places accessible
to emplllo~ees full coplies of thlis Code.
SEC. 9. NO employer shall avocid' or evade the labor provisio~ns of
this Code by contracting his work~l to any perso~c n subject to labor
r~egulations less stringent than those -provid~ed in this Code.
SEC. 10. NTo mlember; of the industry shall p~ermlit any produlrct of
the inductr~y to be made in the home of any wTork~er.
SEC. f1. Fernllle fRctOry employees shall be pserm'itteid to work only
between the hours of 7I A.M. to 7 P.Ml.
SEC. 12. Female employees perfor~ming substantiaally th~e same wor~k
as male employees shall receive the samle rate of pay' as male
SEC'. 1:3. Every emplloyer shlall ma~ke reasornable pr~lov'ision for the
s~afet~y and health of his employees at the place and d~ur~ing the hours
of their emplJloymlent Standards for safety and health shlall be sub-
mitted by th~e Codec Aulthorrit~y to the Administrator for approval
writhin six months after the ellecti~ve date of this Code.
AIRTZICLE VIl[-OncIA xzaTIrx, POWERS, AN'D DITTES OF THE GODE
SECTION 1. Organiizatfiol. and/ Cons~tit utfrio.--Code Authority- is
her~eby constitu~ted to colper~ate with the Admlinis~ltrato in the ad-
miinistr~atioin of this Code.
SEC. 2. 1118 COde Author~ity shall consist of not less than five (5)
mnembe~ri of the industry complying with the provisions of Section 8
of this AIrticle. to. be elected as follows: Four (4) mlembers~ shall be
elected by the Association; not less than one (1) member shall be a
nonmnember of the Association, if there be any such members; of the
industry, andi shall be elected by such nonmembiers comp~lying or
a gree i ng to comply wt~jh the provisions of Section 8 of this Article
by personal vote or by proxy at an election conducted by the
SEC. :3. One alternate may be selected for each member of the
Code Authority in the same mannner as the respective members of
the Code Authority. Should any matter come before the Authority
which specificaally mvolves acts, conducts, or the interests of a com-
pany with which any member of the Code Authority is associated
or employed, such member shall b~e disqualified to act in such matter
and a designated alternate may act in such disqualified member's
SEc. 4. The Association is hereby designated as the agency to
conduct an election of the members of the Code Authority within
twenty (20) days after th effective date of this Code (and any
other elections of members of the Codle Authority which miay there-
after be held). Members of the Code Authority shall be elected
to serve for a term of one (1) year or until their successors are
elected at the next annual meeting of the industry. In the event
of any vacancy in thle membership of the Code Authority, a special
meeting of the members of the industry for an election to fill the
incomplete terms of such. members shall be called. Notice of each
election shall be sent to all members of the industry at least ten
daysa in advance of such election, andl voting at such election miay
be by person, by proxyr, or by letter ballot.
SEO. 5. I~n addition to mem~bershlip as above provided, there may
be three (3) memberss, without vote, to be appointed by the Ad-
mlinistrator, to serve for terms of from six (6) to twelve (12) months
fromt the date of appointment as the Administrator may designate.
Such members shrall be given notice of and mlay sit at all meetings;
of the Code Authiority.
SEc. 6. Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority
shall (1) impose no inequitable restrictions on membership, and (2)
submlit to the Administrator true copies of its articles of association,
bylaws, regulations, andi any amendments when made thereto, to-
gethler with; such other information as to membership, orgaanization,
andc activities as the Adlministrantor may deem necessary to effectuate
thre purp oses of the .Act.
SEC. I. ThOrder that the Code Authiority shall at all times be
truly representative of the industry and in other respects comply
with the pr~ovisions of the Act, the Administrator may prescribe
suich hearings as he .mayv deem proper; and thereafter if he shall
find that the Code Aulthorit~y is not truly representative or that anly
election of me~mbers of the C~odle Authority hlas not been conducted
in a fair and equitable manner or does not in other respects comply
with thle provisionss of the Act, may r~equire an appropriate modifica-
tion in the method of selection of the Code Authiority.
SEC. 8. Rlembers of the industry shall be entitled to participate in
and shiare the benefits of the activities of the Code Authority and
to participate inl the selection of the members thereof by assenting
to and complying with the requirements of this Cod~e and sius-
tainiing their reasonable share of the expenses of its administration.
Those who participate in or accept thle benefits of the activities
of the Codle Authority or their respective Divisional Agency shall
pay their reasonable share of the cost of t.he administration of this
code. Such reasonable share of the expenses of administration shall
be determined by the Code Aulthority, subject to review by the
Administrator, on the basis of volume of buSin~E;S and/or such
other factors as many be deemed equiitable.
SEC. 9. Alferabers of Code Authiortty nrot Partners.-Nothincr con-
tained- in this Code shall c~onstitute the mnembllers of the Co<$e Au-
thority partners for any purpose. Nor shlall any member~il of the
Code Authority be liab~le in any" miannler to anyone for any act
of anly other member, officer, agent, or empiIloy!ee of the Code Au-
thority. N~or shall any miemiber oif the Code Authocrity,, exercisingr
r~easonalble diligence in thle conduct c.f his duties hereulnder, he
liable to any one for any action or omrissioni to act under this Code,
except for his own willful misfeasance or nIon~feasn41Ce.~
S-nc. 10. Powers and Du~lfties of Codle AuthorJIill.--T he Code Au-
thor~ity shall have the follow-ing furlther1 powers andc duties', thec
exercise of which shall bet r~ep~ortedl to the Adm'mi~istrator~l andl shall
be subject to his right, on retview-, to dlisap~prove anly action takenl
by' the Code Authority:
(a) T~o insure the execution of the provisions of this Code andl
provide for the complia ncee of the indu~str~y with the provisions of
(b)' To adopt bylaw~s and rules andr r~egulations for its pr~oceduree
and for the admlinisjtration andr enforcement of the Code.
(c) To obtain fromt members of thle industry such information
and reports as are~lreiquired for the admllinistwtirato of the Codet andc
to provide for submiission by miembers of such inlformaltionn andl
reports as the Administrato l lr V may eem necessary forl the purpoy~l~ss
recited in Section 3 (a) of Title I of the Act., wrhichn informan~tion
and reports shall be submnittedl by memberscl~ to such~ admninistrativee
and/or government agencies as the .Admlinis;trator may des~ignate;
provided that nothing in this Code shall rIelieve any member of the
mdustry of any existing obligations: to furnish reports to any gov-
ernmlent. agency. No individual reports shall be disclosedl to an y
other member of the industry or any other party except to such
governmentn1 agencies as may be directed by the Administrator, and
except to suchl imlpartial agenlcy as mayS be nlec~essaryg to facilitate
the administration of this Code.
(d) To use such trade associations and othner agncies as it dleems
proper for the carrlymng out of any of its activities pr~ovidedl for
herein, provided that nothing herein shall relieve the Code Auth~or-
ity of its duties or responsibilities under th~is Code andl tha~t such
trade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
(e) To make recommendations to the Admninistrator for the coor-
dination of the administration of this Code with such~ other codes,
if any, as may be related to the industry.
(f) To secure from members of thle indulstr~y an equitable and
proportionate payment of the reasonable expenses of maintaining
the Code Authori~ty and its activities.
(g) To cooperate w~it~h the Admninist~rator in regulating the use
of any N.R.A. insignia solely by those members of thle indlustr~y who
have assented to and are complying with this Code.
(h) To recommend to the Admninistrator further fiair-trad~e-pr1ac-
tice provisions to govern members of the industry in their relations
with each other or with other industres, and to recommend to thle
Admiinistrator measures for industrial planning, including stabi-
lization of employment.
(i) The Code Authority maoy appoint such committees or agents
as it mnay deem necessary and mlay delegate to them or to any Divi-
sional Algency such of its powers or duties as it bany deem proper for
the admmnistration of this Code; provided, however, that it shall
reserve final responsibility as to any powers or duties so delegated.
(j) To cooperate with the Admimnstrator in making investigations
azs to the functioning and observance of any provisions of this Code
at its own instance or on complaint by any person affected, and to
report sam-e to the Administrator.
(ka) To issue rules, regulations, procedure, and interpretations,
as m~ay be necessary to effect the provisions of this Clode.
(1) -In individual cases where the enforcement of this Code would
create undue hardships, to modify, with the approval of the Ad-
mninistrator, the application of provisions of this Code except those
wRhich are mandatory under the Act and the provisions of Articles
III, IV, and V- there~of.
(m) To investigate and inform the Administrator as to the impor-
tation of competitive products into the United States in substantial
quantities or in increasing ratio to domestic production on such
terms or under such conditions as to render ineffective or seriously
to endlanger the maintenance of this Code, and as an agency for
making comnplaint to the Pre~sident on behalf of the Industry under
the provisions of the A~ct, wgith respect thereto.
(n) In order to assist in eliminating unfair competition, the Code
Ath~ DorilP~dty mayn ~ establish classifications and quality standards for
theprouct ofthe industry, subject to the approval of the Admin-
istrator. No member of the industry shall falsely represent his
products as complying with any classifications or standards so
(o) T~o recommend to the A~dministrator the establishment of an
'Inldustrial ]Relations ]Board.
SECTIOS 1. It is hereby declared to be the policy to be followed
by' all members of the indulstryv to refrain from dlestruct~ive price
cutting. N member of the industry shall offer, sell, or exchange,
or agree to sell or exchange, products of the industry at a price or
upDon such terms or conditions that will result in the customer paying
for such products less than their cost to the member of the industry,
(a) To mecet existing competition of lower cost producers on pro-
ducts of the same or equivalent design, character, quality, or
(b)Anymember of the industry may sell at any price discontinued
Auithor~ity to require reports of all such sales, and, with the approval
of the Admninistrator, to adopt rules to regulate the sale of close-outs
to prevent unfair trade practice.
SEc. f2. The Code Authority is thereby empowered to establish
uniform cost accounting methods .for the industry, subject to the
approval of the Administrator. Illnundiately after arprov~al by
t.he Administrator information regarinciig the necountlng systemi
so approved shall be dlistributedl to all mlemb~r~s of the indus~ltry3 and
shall thereafter be adhered to by all mem~iber~s of the indtustryS.
SEC. 3. For the purpose of encouragini g aiccurate as~~ertninmenl~lt
of costs, members of thle industry may report costs of produc~ts of
the industry to the Sereta~ry of the assioc~iation, to be summarizedzec~
anid whlich may be made available in co.n.so.lida~ted1 form11 to those
contributing to, the summaypoie ht h aeo hs
reporting shall not be divulge t~o an oilther m~emr of the ind try.,
ARTICLE VIII--I PUBLICATION OF PRICES
SECTION 1. Ench member of the Industry shall wclit~hin thir~ty (30)
dlays after the effective date of this code file withn a decsignatedl repre~c-
sentative of the Coode Authority a list of all his products and lthe
prices thereof, including all quantity or others discocunts,; all terms
of payment, freight allowances, prepayments, and eiqualizat~ions.
Such prices shall be aailable to any member o the industry tiveor the
purchlasinga trade on request to the dsgnae ersnaieo h
SEC. 2. A member of thle industry mlay' make any change inl such
price list onl file with the designated ersnaie fteCd u
thority to be effective wvit~hin not mor~e than five (5) days lf~ter suchl
price list shall have been filed with the deisiglnatedt representative of
the Code Authority.
SEc. 3.f The sale of anry product by any member of thle industry at
other thIan the effective price or terms of suchr member for-such, prod-
uct on file wFCith the dlesignated re~pr~esentat~ive of the Code Authority
at the time of such sale shall be a violation of this code.
ARTICLE I1 RADE PRACTICE
The following practices constitute unfair mneth~ods of compe~ttiton
for members of the industry and are prohibitedc:
SECTION 1. lM'jicyrepsentation.1 or Fal~se or Misleadfl~ing Adecr;Itis-
inlg.--The making, or causing, or knowingly permitting to be madnce or
published any false~, materially inaccurante. or d~eceptive statement by
way of advrer~tisement or otherwise, whether concerning the grade,
qluality, quantity, substance, character, nature, origin, s~ize, finlish, or
preparation oan poucofteidtror the credit terms,
values, policies, or services of any mnembler of the industry, or other-
wfise, hlavinga the tendency or capacity to mnislend or deceive customers
or prospective customers.
SEC. e. *Cc-ciff #d Di8CP/77nai G/~OP Iel)U/88.--The mlaking of any
secret. or discriminatory allowance, r~ebate, refundl, cormnusion,
credit, or unearned discount., whether in the form of mioney or othier-
wTise, or the extension to certain purchasers of secret or discr~iminn-
tory services or privileges not extended to all purchaser~s on like,
terms and conditions.
SEc. 3. Giving Grauitubies or Relreards to Em~ploFees.-- T hle giving,
permlitting to be given, or directly offer~inga to give, anything of -val-ue
Be paragraph 2a of order approving this Code.
for the purpose of influencing or rewardingr the action of any em-
ployee, agent., or reprepsentadtive of another in relation to the business
of t~he employer ofi such employee, the principal of such agent or
the represented party, without the k~nowrledge of such employer,
principal, or party. Commercially bribery provisions shall not be con-
str~ued to prohibit free and general distribution of articles commonly
used for advertising except so far as such articles are actually used
for commercials briberyr as hereinabove defined.
SEC. 4. COpyiby of DC&/@R.-Ktnowingly copying and/or repro-
ducing anyr essentally original new design or new pattern of any
product of the industry, or kinowringly appropriating the essential
selling features of any newv design or new pattern of another member
of th~e industry, withinl four (41) years of the introduction thereof.
This section shall not, sup>ersedie any State or Federal Law but shall
be supplemental t~hereto.
SEc. 5. Falose In~o2"cin"~g.-T h~e withholding from, or insertion in,
any invoice of any statement making the invoice inaccurate in any
material particular, or which mnisrepr~esents the price or character of
the material content of the merchandise billed.
SEc. 6. Tenna~l~ of ,Sale.-Selling on mlore favorable terms than net
30 dayrs or 2%r cash dliscoulnt within 10 days from date of shipment;
provided thiat where it is the practice of a buy-er to muake monthly
settlement of all invoices, the member of the industry may allow the
deductions of th~e cash, discount if payment is made not later than the
10th of the calendar month following dates of shipment.
SEC. 7. Inlteference WTVf /A AOter'8 Contrlc~ts.--No member of the
industry shall induce! or attempt to induce the breach of an existing
contract between a comlpet~itor and his employee or customer or source
SlEC. 8. XS.ilpine of Com? Rld~ifk i Oi, CO718/giY nenlt.-No member
of thIe industry shall ship commodities on consignment, except to
meet special conditions or circumstances approv-ed by the Code Au-
thority to meet special conditions.
AR~JTICLE ~X--NEWr DESIGNS AND PATTERNS
SEC'TION 1. Each member of thle industry mnay register with the
~Secretary of the Association t~he new designs and the new patterns
whtichi are original and dlistinctive, and which are developed by such
manufacturers after the effective date of this Code.
ARTICLE ?iI hlONOPOLIES
SEjCTIOx 1. ]No provisions of this Code shall be interpreted or ap-
plied in such manner as to promote or permit monopolies or monop-
olistic practices or to eliminate, oppress, or discriminate against
SECTION 1. lI dS Codle and all the provisions thereof are expressly
ma~de subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the National Industrial
Recovery Act, from time to time to cancel or modify any order,
approval, license, rule, or rIegulatios n issued~ undler Title I of sa~id Act
and specifically, but without limnitatio~n. to th~e right of the P'resid~ent
to cancel or modify his appr~oval of this Code or any conditions
imposed by him upon his appriloval thiereocf.
SEc. 2. Tjhis Codle, excerpt as to provisions r~equir~ed by- the Act, rny
be modified upoln application to the Admllini.strator by the Code Au-
thority after suich notice and hearnling~ ;r the Adminiilstrator shall
specify, stuch mod~tification to become etffc~tivet ulpon approv~\al by the
ARTICLE XII[I-PRICIE ThNCREAS~ES
WChereas the policy o.f thle A~ct to increasnce real pur~cha~ising power
will be made imipossible of co~nsunulnatio1 if price~s of goods and
services increase as rapidly as wnges, it is recolgnize~d that pr1ice in-
cr~eases s~houldl be delayed and that, when made, the samelt should,: so
far as rensonably possible, be limnilte to actual increase in. the seller'"s
ARTICLE XIVT-EFFECTIV'E DATE AND TERM\INATION
This Code shall become
shall have been ap~proved
effect until June 16, 1935,
President, by proclamafion,
declare that the emergency
Recovery Act has ended.
AppDroved Code No. 260.
RegistrY No. 315-0)2.
effective on the ec~ond Mlondla.y after it
by the Pr~esident. It shall continue in
or until such tim~e prior thereto as: the
or the Congrress shall byT joint resolution,
recognized by Section 1 of the hNatiojnal
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