NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
Por sale br the Sulperintendent of Documents. Washington, D.C. Price 5 senta
Approved Code No. 509
Registry No. 1114--31
AS APPROVED ON AUGUST 27, 1934
UNITED STATES -
GOVERNMENT PR1INTING OFFICE
This 'publication is for sale by the Superintendent of Documents, Government
Printing Ofjee, Washington, b.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OFr COMCMERCH
Atlanta, Ga.: 504 Post Offce Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mlich.: 108 First National Bank Building.
Bouston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mlo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Mlemphis, Tenn.: 229 Federal Building.
M inneapolis, Mllina.: 213 Federal Building.
New Orlearns, La.: Room 225-A, Customhouse.
Niew York, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Philadelp~hia, Pa.: 422 Commercial Trust Building.
Pittsburgh Pa.: Chamber of Commerce Building.
Portland, 6reg.: 215 Newr Post Office Building.
St. Louis, Mlo.: 506 Olive Street.
San Franelsco, Calif.: 310 Custombouse.
Battle. Wash.: 809 Federal Office Building.
Approved Code No. 509
CODE OF FAIR COMPETIL'T`ION
MARINE EQUIPMENT MANUFACTURING
As Approved on Atugust 27, 1934
APPROVITNG CODE OF FA\IR COMPETITION FOR TH[E 11ARINE EQ~UIPMECNT
10A NUFACTUING NINDUSTRYI
An application having been duly made pursuant to and in full
comnphance with the provisionls of TIitle I of the National Industrial
Recovery Act, ap~proved .June 16, 1933, for approval of a Code of
Fair Competition for th~e Marine Equipment Manufatcturing In-
dustry, and hearing having been duly held thereon and the annexred
report on said Coder, containing findings with respect thlereto, having
been made and directed to the President:
NOW, THIEREFORE, on behalf of the Precsident of the United
States, I, Hugh S. Joh~nson, Adminis~itrator for Industrial Recovery,
p~ursuan7t to authority vested in me by .Executivre Orders of the
President, including Executive Order o.6543-A, dated December
30, 1933, and othlerwise; do heretby~ incorporate by reference snid
annexed report and do find that said Code complielts 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 Competition bje and it is hereby approved; provided, how-
ever, that the prov-isionls of Article ~X, insofar as they prescribe a
waiting per'iodl between the filing; with. thne Code Authority and the
effective date of revised pr1ice~ lists or r~evisedl terms and conditions of
sale be and they are her~eby stayed pendina my further Order; and
prov;ided, that the provisio-ns o Article 1,Sect~ion 5, be and they
ar~e hereby stayed p~endring my further Ord~er; and provided, that the
operations~ of all the provisions of this Code be and they are herleby -
staye'd as to all panrtles subject thereto insofarfnl as they may apply to
thle prLoducts of th~e Gray Iron Foundry Indlustry, ,thne Non-Ferrous
FoundlryS Induls ry, and the Elect~rical Ma~nulfact urlng Indlustry1, for
a per~iod~ of 60 dan~ys during which. time the Cod~e APuthorities for the
Gray Iron FounldryS Inldustry, theP Non-FerrLouIs Foundry Induslltry,
the Electrical Mannufacturing TIndustryadteMrn qimn
Manufcturig Indstry hall eek troug conference to adtiust
th~eir differences recgarding the~ definlitionI of this Code, andr report
8294 10-1-11 34( [}
to me within 60 days thie results of such conferences; and provided
further, that this stay mayS be extended by my further Order.
HUGHz 8. rlOHNSON,
Admrrinist~rlato~r) for IndJu~strial IRecovlery.
3BARTON CTY. RIURRAY,
Alugurst 97, 1OJJ.3~
The W~hite House.
Sin: This is a report on. thze Code of Fair C~ompetition for the
Marine Equipmnent M~anufacturingf Indlustry of the TUnited States,
the hearing hanvingr been held in WVashington on the 22nd daly of
M~ay in accordance with the provisions of thie National Industrial
PROVISIONS As TO HOURS A~ND WAsGES
H-ours of employment are limited to 8 a day and 40 a week except
for executives and managers earning $35.00 or more weekly, sales-
men and employees on emergency7 maintenance or repair wor~k.
During seasonal periods a tolerance of 48 hours in any 26-wseek
period is permitted. Shipping employees may work 10 hours a day,
but are limited to 80 hours in any two-wceek period. Time and one-
half will be paid for all hours in excess of 8 a day and 40 a week
except to shipping employees, who may be paid at the regular rate
for 44i hours a week.
Watc~hmen may work 56 hours a week.
Forty cents an hour is established as a mrinimnum~ wage for males
and femanles except in the Southern area where 321/2d an hour will
be the miiiinuimum
Nlio one under~1 16 years of age may be employed and no one under
18 years of age may be emnployed at hazardous occupations.
ECONOMIC EFFECT OF THE CODE,
In. 1933 this Industry, which comnpr~ise~s approximately 50 firms,
emlployed about 1,000 persons. Since the adoption of 40-hour week
as provided in this Codle, employment has increasedd to 1,500 persons
in July, 1934, or an increase of 50%.
The inves~tedl epital of the Indust~ry is about $5,000,000.00, and
the average annulal sales of its products over the past 5 years is
apyJprox i m at.ely $1l,500,000.00.
The Deputy Admlinistrat~or in his final report to me on said Code
having found as herein set forth and on the basis of all thes pro-
c~eedlings in this matter:
I find thiat,:
(a) Said Code is well de~signled to promote the policies and pur-
poses of Title I of the Naltiojnal Industr~ial ,Recovery ALct, includ-
REPORT TO THE PRESIDENT
ing removal of obstructions to the free: flow of int~erstatte and foreign
comm~erce which tend to diminish t.he amount thereof and will pro-
vide for the: general welfare by promlot~ing tihe organization of in-
dustryg for the purpose of cooperative action amlonga trade groups,
by indcucingr and maintaining uniited action of labor andl manage-
mnent under adequate governmental sanctions anrd supervision, by
eliminating unfair comnpettitve practices, by~ prom~otinlg the fullest
possible utilization of thle pr~esenit productive capacit-y of industries,
by avoiding undue re~strictio~n of production (except as may be temu-
porarily requiredd, by increasing the consum~ption of industrial anid
agricultural; l products .th-roughl incr~easing pur~chasing power, by re-
dluCing and. rollev.ingr unmpnl-l~ lloyment by impnroving standant~s of
labr, sulby therw-iae rehabilitation indust rY.
pheyeest~r; and is not classified by mne as a major indul~stry.te el
tinent proviJsions of said Title of said Act, including without limnita.-
tion Subsrection (a) of Section 3, Subsection (az) of Section 7, and
Subsection (b) of ~Se~Ct io 10 thereof ; a nd that the a pplien11 nt sso-
cilation is an industrial association tr~uly reprecsent~ativ e of th a~fore-
said Industry; and that. sa~id association imnposes no ineqcuitable r~e-
strictions on admission to mermbershnip t~hereln.
(d) The Codle is not designed to and Ti~ll not permit monopolies
or monopoi~stic p~raCticeS.
(e) Thze Cod~e is not dePsigned. to and will not; eliminate or oppress
small enlterpr~ises and will n~ot operate to discriminate against t~hem.
(f) TIhose engagaed in ~t~her steps of thle econom~lic process have
not been dlepriv~ed of thle right to be hlea~di prior to approval ofP said
For these reasons, this Code has be~en approved by me subject
to the following conditions:
That a stay be placed' on the waniting~ periodl between. thne dalte of
filing and the effective date. of re~visied prire lists or revised terms
and ca~ndlitio~ns of sale as provided in Artcle X.
That a stay be placed on the operation of all the pr1ovisio~ns of
this Code insofar as they mayn apply' to prToducts of the Electr~ien1
Mannufacturirng Industry, the N~on-Frcou ondyIdsty n
thme Gray Iron Foundry3 Indu~strS for a per~iod of GI: days, dulringa
which ~timae thte affect-ed Cod .Au~thorities shall endeavor to adjust
their dit~erenlces atnd report to mue, and which stay~ mayr be extended
by my further Order.
HUGCH S. JoINson,
AdmJI1inis trct o r.
AUTGUST 27, 1934-,
CODE OF FAIR COlllPETITION F'OR THI3E: MARINE EQUJIP-
MIENT M~ANUF'ACTU;RI[NG INDUSTRY
To effect the policies of Title I of the Na tion al Industrial Recovery
Act, this Code is sub~mittedt as a Code of Fair Competition. for the
Marine Equipmnent Alanufact.uring Industry, and upon approval its
provisions shall be thle standards of fair competition for such. In-
dust~ry andr be bindingr upon eer~y member thereof.
A HTICLE 1:-DEFINITIONS
Thet term Marine Eqluipment Miianufacturing Industr~y ", ~here-
after referred to as the Industry, is defined to mean the fabrication
or manufacture for sale of equipment exclusively for marine usage
to include specifically the followinga lines:
Anchors, forged, cast-iron or malleable-iron,wmeig;hing 500 pounds
Blocks, yacht, type of cast iron, malleable iron, brass or lignum
CargoT hooks, boat hooks, anrd poles
Controls for marine engines (spark, throttle, and reverse gear).
Eye and chain plates
Flag pole sockets
Fog hlorls, whistles and sirens,--marine type
Galley sinks of sheet metal and/or enameled iron
Lavatories, mnanually operated marine pump type, and fittings
Life preservers, other than. cork
Lighting fixtures, marine type
Mianhold plates, maarine~ type
Marine lock sets
Marine shanft b~earing.s of rubhber, fibre, babbitt and/or brass
MaIrine stove~s other than woodl- or coal burning type
\Inst and spar bands, belaying pins, and fittings therefore
Our~s and paddlles exceptt sawmill operations)
Oar tips anid oar le'at~her~s
Propellers, finished, bronze and,'or nonferr~ous metal, (forty-eight
(48) mehles or less mn diamlete))
Pumips, bilge manuallyy operated)j of cast ir~on, cast brass, or sheet
Pumps, galley and lavattory (ma~nu~ally operated) up to 2" diamn-
Pumlps, gear, of bronze, up to 1" pipe size
Seac-cocks~i and through hull connections uip to 2"
Senrablights, marine type uip to 14" dliameter
Sheet metal products of standlardl miarine dlesign, including vent~i-
Jators, buo ys, scoops, screens, etc.
Snaps, boat and jib
Stanch~ion fittings exceptt standard pipe fittings)
SCt~eering equipment (mnnua~l ll operated) for b~oats up to 100 feet
Toilets (~manua~lly operanted), mnrinie pumlp type, up) to 3" inside
Tulrnbulckles, p~ipe andc bronze
UTnd-erwater hull1 fittingSi 3" andt less
W~indclnsses s or' win~ches~ (manuallly operated)
And such other items of equipment made particularly for marine
usange when approcved by the Adm~inistr~ator upon" the rei-commnendn-
tion of thre Code Authority.
The term "Emplloyee," as used herein, includes any and all persons
engagedc inR thfte Industry! 'however c~omplensated, except a member of
The te~irm "Emloyer," as ulsed hlelrin, includes any one by whom
such employee is co~mpensatedi or employed.
Theo term "MRember of the Industry,'F as used herein, includes but
without limitationr, any in~dividunal, partnership, association, cor~pora-
tion or other form. of' entrpr.ise enlg~aed in the Ind~ust~ry either as
an employer or on his or its own behalf.
TPhe ter Presidelt "a "A~ct", and "Adcminist~rator "2, as used
here~inr, shall mmean respect lively the Preisident of the Unliteed States,
Title I of Ithe Natio~nal Industrial Recovery Act, and the Aldminis-
trator1 for~ I~ndustrial Reco~very.
The term "Assscciation ", as usedl herein, is defined to mean the
Marine Equripmen" t Ma~nufncueturs Association.
SEC.TION 1. NO emnploy'ee shall be p~ermitted to workr in excess oP
forty (40) hours in any one wF~eek or eight (8) hours in any twenty-
four (24) hour period, except as here~in otherwise provided.
SECTION 2. The p~rovisions of this Aclrticle limliting hours of work
shall not. apply to traveling aalesmlen, or to persons engaged in a,
managler~ial or executives capacity who earn not less than thirty-five
($35.O00) dollars per week.
SECT1ION~ 3. Tile mlasimumn hours fixed in. Section 1 shall not; apply
to any employee on emlergenlcy maintenance e or emerge~r ncy repair
workl involving blreakdowvns or protection of lif-e or propertyg, but in
any such special case at least one and one-hnalf (1%/) times thie regu-
la~r rate sha~ll b~e pa;.id for all hours workled! in excess of eight (8)
hours inl any day1 or for~t.y. (40) hours~ in. any w~eekc.
SECTION 4. The'I maximum hours fixed in Sectio~n 1 shall not apply
for~ six (6) weeks in any! twn~tylt-six (26) weeks' period, during which
time, however, over~time shall n~ot exceed eihlt. (8) hours in any one
(1) weeki; provided, however, that in any such special case at least
one and one-half (1%/) times the regular ra~te of pay shall be paid
for hours w~orkled in excess of eight (8) hours in any day or forty
(40)) hours in any week.
S ECION 5. The maximum hours fixed in Section 1 shall not apply
to shipping department employees who may be employed forty (40)
hours per week averaged over a two-week: period, providing thnat
no employee shall workr in exicess of te~n (10) hours in anly one day
and!: provided further that in any s~clh case at least one and one-half~
(11/) times the reggula~r rate of pay shall be paid for all hours wor~ked
in excess of eight (8) hours in any one day or forty-four (44) hours
in any one we~ek.
rSECTION 6. No employee shall be permitted to wor~k more than
six (6) days in any seven (7) day period.
SracTarro 7. Wa~tchmen shall not be p~ermittedl to workr in excejss
of fifty-six (56) hours in any weekr.
SEC'TION 8. No employer shall knowingly permit any employee
to work for any time, which, wPhen to~taled with that already: per-
formned for another emrployer or employers, exceedsr the maximum
SECmoiN 9. Emlollryer~s who personally perform manual wor~k or
are engaged in mlechanical o~perationls shall not exceedl the prescribed
miaximumi numnber of hours.
ARTIICLE T7- TXaGES
SECTION 1. No employee shall be paid less than at the rate of forty
(40) cents per hour, except as hlerein otherwise provided.
SE~CTION 2. No employee engaged in the prod-uction of boat oars
and paddlles, (exscep~ting sawmill operationss, shall be paid less thanz
at the rate of forty (40) cents per hour, excepting in the Southern
wage ar~ea comnprising~ the States of North Carolina, South Carolina,
Florida, Georgia, ALlabamla, Tennessee, Mississippi, Arkansas, Loui-
siana, OklahnomaR, and Texas, in which n~o employee shall be paidi
less than at the rate of thirty-ftive (35) cents per hour.
SECTION 3. No employee engag:ed- in sewmng and other operations
inl the pr1oductionl of life preserv\er~s, boat, fendelrs, and Simlilarl prod-
uets, shall be paid less than at the rate of thirty-five (35) cents per
houir, excepting in the Southl-er~n wae area comnprisingthe',ti States enof
North Car'olinla, South Caro~lina,, Floridla, G~eorgiAaamTn
s294 2 "---1044--131-4----~2
nessee, M~ississippi, Arkansas, Louisiana, Oklahoma, and Texas, in
which no employee shall be ~a~id less than at the. rate of thirty-two
and one-half (32Ve) centsy per hour.
SECTION 4-. NO clerkica OI 05tce employee shall be paid less than at
the rate, of fifteen ($15j.00) dollars per week.
SECTION 5. Offic~e boys andl gir~ls may be paid not less than eighty
(80) per cent of the minimum salary provided for clerical or offce
employees in Sect~ion1 4 of this Alrticle; provided that t~he number
of such office boys and girls so paidl shall not exceed five (5) per cent
of the total number of clerical or office employees in anyt establish-
inent, but in any case an employer shall be entitled to employ one (1)
SECTION C;. This Alt.r.tic establishes a minimuml rate of payv reg~ard-
less of whehe an; employee is comnpenrsated on a time-rate, piece-
workr, or other basis.
SECTION 7.~ There shalb an equitable adjustment of all wage rates
above the minimum unlless this has already been d~one, but in no case
shall th~e wages above mninimnum be decreased a~s a result of this
adjustment. The action taken by eatch memb~ter shall be reported to
the Code Aulthority within thirty (30) danys after the effective date
aznd to the Administrator on req~uest.
SECTION 8. Female employees performing substantially the same
wor~k as masle emrployees shall receive hle, sane, rate of pay as mnale
employe~esr a ndl where theyT displace mnen, they shall received the same
rate of earnings as the mnen they displace. The Code Author~ity shall
within ninety; dys~i after the effective date of this Code file with the
Adlministra~tor a description of all oc~cuplations in the Industry~ in
which, both me2n and women aree employqedr.
SEctroh 9. A person whose earning capacity is limited because of
age, physical or mental handicap, or other infirmity, muay be em-
p~loyed onl light worke at a wa~ge be~low the minimuml established bcy
this Codle, if th~e emlployer obtains from the. State authority, desigr-
nated by the United' Sitats Depar~tmelnt of Labor, a certificate author-
izing suc~h person's employmenta at such wagaes and for such hours as
shall be statedl in the certificate. Such authority shall be guided by
the instructions of the UnT~ited~ States Depatent of Labor in issu-
Ing cer~tificaftes to .ulchl persocns. Ealch employer shall file monthly
with the Code Authority a list of all such Ipersonls emloyll~ed by
himn, sihow~ingL the wages paid to, and thke maxrim~um hours of worki
for suchl employee.
SEC.TION 10. Every employer shall ma2ke payment of all wages due
in Inw~ful cur~rencyl~ or byT negot~iab~le check ther~efor, payrable on
demand. Thnese? wages shall be exempt froml any payments for pen-
sions, insurance, or sick benefits other tllhan, those voluntarily paid by
the wage ear~ners or requiredl byT State laws. Wages shall be paid at
least at the endl of every$ twvo-week perLiod, and salaries at least at the
end of ev~ery month. N~o employer shall withhold wvages. The em-
player or his agents shall accept. no rebaltes directly or indirectly on
such wa~ges nor gi~ve anything of value or ext~endi favors to any person
for the purposes. of influenemng rates of wages or the working condi-
tions of his employees.
SECTION 11. NO emplOgee shall be dismissed or demoted by reason
of making a complaint. or g~ivingr evidence with respect to a, violation
of this Code.
ARTICLE 7T- GENERum L-ABOR PROV\ISIONS
SECTION 1. No person under sixteen (16) years of age shall be
employed in the Indurstlry. No person ulnde~r eigltee~n (18) years of
age shall be emlployedd at operations or occupnt ions which are hazard-
ous in nature or detr~imen~tal to health. The Code Authority shall
submit to the AdmninistratorI within ninety (90) dayr~s after app~r~ovnl
of this Code a list of such operations or occupations. In any.State
an employers shall be deemled to have complllied1 with this poi,'locn as
to age if he shall hav\e on file a valid certificate or permit duly signed
by the Auithor.ity in such Statte emnpow'lered to issue emlploym~ent or
age certificates or permits showing that the employee is of the
Seencrow' 2. It is hereby provided: That employees shall have the
right to organize alnd bargain collectively thl~rogh~ r~epresentatives of
their own choosing and shall be free from. the interference, restraint,
or coercion of emrJployrers of Inb~or, or their agents, in. the detsignation
of such representatives or in. self-organization or in other concerted
activities for the p~urpose~ of collective bargaining or other mutual
aid or pr~otect~ion.
That no employee and no one seeking employment shall be required
as a condition of employment to join any compla ny union or to refrain
from Joinmng, orgammzing, or assisting a labor organization of his
That employers shall comply with the maximnumn hours of labor,
miniinlum rates of pay, and other conditions of employment approved
or prescribed byb the President.
SEcTION 3. Noemployer shall reclassify employees or duties of
occupations per~for~medl or en~gage in any o~therl subterfuge for the
purpose, of defeating the purpose or provisions of the Act or of
SECTION 4. Every emnploy~er shall. make reasonable provision for
the safety and hea~lth of his employees at thle place and during the
hours of their employmlenit. Standards for safety and health shall
be submitted by theCode Authority to the Administrator for ap-
provral w\ithin three mlonthsu after the effe~ctiv-e date of this Code.
SECTION 5. No provision in this Code shall supersede any State or
F~ederlR lawF which imp~oses on employers more string~ent requirements
as to age of employees, wages, hours of work, or as to health, general
working conditions, or fire protection, than are imp~osed by this.
SECTIOIN 6. AllI emnployers shanll post and keep posted copies of the
labor pr~ovisions of this Code in consp~iclluos places acc~esible to all
employees. Ev~ery member of thle Indurstry shall comply with all
rulles: and regulatnions rePlative to t~he pos-lting of provisions of Codes
of Fair Competition which miay from timne to timie be prescribed by
ATIcuE VIT-ORGAN IZATION AND ADMIN ISTRATION
SECTTON 1. (a) During the period not to exceed sixty (60)d d ays
following the effctive date, the Codle Committee of tnh Inustry
shall constitute a temporary Code Authority until the Code Author-
ity is elected.
(bl) The Code Auth~ority shall consist of seven (7) individuals, or
such other number as may be approved from time to time by the
Admninistrator, to be selected as hereinafter set forth. The Adminis-
trator, in hiis discretion, mnay appoint not mior than three (3) addi-
tional muemblers withoutt vote) to represent the Administrator or
such groups or interests as he many provide.
(c) Five (5) members of the Code Authority shall be elected by
members of the Industry who are members of the A~ssociation. This
election shall be held at a meeting of the Association, such meeting
to be called by the Associationi within thiirty (30) days after the
approval of this Code. Notice of such meeting sh-all be sent to all
knownl members of t~he Indlust~ry whlo are members of the Association
and each mnemnbr shall be entitled to vote on the basis of one I1)
vote for every $25,000.00 or fraction of sales~ up to and including
$100,000.00; onie (1) vote for every $50,000.00 or fraction fromt
$100,000).00 to $200,000).00; one (1) vote for every $100,000.00 or
fraction above $200,0O00.00. For this purpose the number of votes
is to b~e determlinled fr~om the sales figures of the products; of this
inusitr~y for thle previous year as certified to an agent of the Code
,AuthorIity. OnlyS sales oiln which a member performs a substantial
par't of the fabrication are elig~ible for the calculaltion of vonting
power. This section is subject to the exception that no one member
miay cast miore than twenty (20) per cent of the total murnber of
votes cast. Fifty-one (51) per cent of the votes so cast shall be nee-
eassary for the election of each individual member. No member of
thle iJndlustry~ shlall hav-e more than one (1) repr~esentative on the
(dl) Two( () adlditionial members of the Code Authority shall be
elected from1 andt by the non-members of the Association If they so
desire, at, a meeting duly called for such purpose by a member vote
to be cast either in person or by proxy, or by letter ballot. A plural-
ity of thle votes cast shanll be necessary for election.
(e) A vacanlcy in the memnber~ship of the Code Authority3 shall be
filledl in t~he ab~ovet manner either at a special meeting or by a mail bal-
lot, at the discretion of the remaining members of the Code Authority.
iS ETIONi 2. Each1 trade or ind~ustrial association directly or in
irecly; 1 participating in thle selectioni or activities of the Cd u
thority shall (1) impose no inequitable restrictions on membership,
-and- (0) submnit to the Administrator tru~e copies of its articles of
association, by-law\s, regulations, and anyiZ amendmlents when maade
thiereto, together with suich other information as to membership,
organization, andc activities as thle Administratorr mnay deem necessary
to effectuate thie purploses of thle Act.
SECTIONII 3. In order that thle Clode A~uthority shall at all times be
truly r representatives of the Indulst~ry and in other respects com~ply
wihthe provisions of the AcLt, th~e Administrator may prescribe such
hearings as he miay deemn proper; and thereafter if he shall find that
the Code Author~ity is nlot truly~ re1pr~esentatie or does not in other
prlit respects complywith the provisionis of the Act, may r~equirec an ap-
propiatemoddcat~ion of the Code A~uthority.
S~ECTION 4. Nliothing c~ontainedl in this Codle shall c~onstitutle the
membe~rs of the Code Author~i ty pa~rtnerr~s for any puIrpose. Nor shllnl
any mlember of the Code Authority be liab~le in anly mnlnler to arcnyon
for any act of any other m~em~er, officer, agent or e-mployee of the
Code A-uthor~ity. Nor shall any member of the Code Au~thor~ity,
exercisingg reas~onable diligecncet in the conuctlt of hris duties hereund~er,
be liable to anyone for any'action or omnissio~n to act under this Code,
except for his own wilful mlalfealsance or non-fensafnce.
SECTION 5. If the Adm~lini;trator shall at any timeo detterminc Itht~t
anly action. of the Code Authority or any agnb'~cy thereof mayy be un-
fair or unljust or contrary to the public inter~est the Adminislltratorl
may require that such aIction be sus~pencdd to afford an opportunity
for investigation of the melr~its of such action and further c~on-.idera-
tion by such Code Authority or agency pendling final action which
shall not be effective unless the Admnimstrator approves or unless he
shall fail to disapprove after thirty (30) days' notice to him of
intention to proceed with such action mn its or~iginatl or modified
IPOW\ERS AND DUTIES
;S;EcTION 6. Subject to such rules and regulations as maty be issued
by the Aldminis~trautor, the Code AiuthorityS shall have the following
powers and duties, in addition to those authorized by other prov~\isions
of this Code.
(a) FTo insure the selection of the provisions of this Code and to
provide for the compliance of the Indlustry with the provisions of
(b) To' adopt by-laws and rules and regulations for its prolcedure.e
(c) T'o obtain from members of the Industry zsuchl information and
repyorts as are required for the ami n i si;t ratio.n of the Code. In addi-
tion to informantion requiredl to be subm~littedl to the Code Authority,
mlember~s of the ~Industry subject to this Code shall furnish suchl sta-
tistical i nformant~i onI as the Adm~In iii-t rato r m~ay dleeml necessary for
the p~urpose~s reccite-d in Section 3 (a) of the ALJct to such Federal and
State age~ncie- s as he maylS detsignalite; provided tha~t nothing in this
Code shall relieve any mltnlembe of the I~ndustry of an~y existing obli-
gationls to furnish. Irepor~t to any Government agency. No ind~ividulrl
report shall be disclosedc to anty other mlembler of the Indcustry3 or any
other party except to such other Gov:~lernmentl agcncies as nIny be
dir~etedl by the Admlinistrator.
(d) T'o use su1Ch tr'ade 1ssoc'iationl s and otherl agnc~ies as it dieemsd
proper' for the carrying out of any of its activities providedt for
heremn, provided that nothing herein shall relieve the Code Author~ity
of its duties or respon'jlsibilities under1 this Code and that such tl~rae
associations and agencies shall at all timesc be subject to and comply
with the provisions hereof.
(e) To makre r~eco~lllnunendatios to the Adml~inistr~ator for the co-
ordination of the admrlinistra~t~ion of thiis Code with such other codles,
if any, as may be related to or eff'ect~ mlembersj of the Industry.
(f) To recommend to the Administrator any action or measures
deemed advisable, including further fair trade practice provisions
to govern members of the Industry. in their relations with each
other or with other Industries; measures for industrial planning,
and stabilization of employment; and modifications of this Code
which shall become effective as part hereof upon approval by the
Administrator after such notice and hearing as he. may specify.
(g) To appoint a Trade Practice Committee which shall meet
with the Trade Practice Committees appointed under such other
codes as mnay be related to the Industry for the purpose of formulat-
ing fair trade practices to govern the relationships betwfen employ-
ersi under this Code and under such other codes to the end that such
fair trade practices mlay be proposed to the Administrator as amiend-
mients to this Code and such other codes.
(h) To recommend to the Administrator fair and equitable defini-
tions of customers. Upon approval by the Administrator such
definitions shall be used by all members of the Industry.
SECTION 1. It being found necessary in order to support the
administration of this Code and to maintain the standards of fair
competition established hereunder and to effectulate the policy of
the Act, the Ciode Authority is; authorized:
(a) To incur such reasonable obligations as ar~e necessary and
proper for t~he foregoing purposes, and to meet such obligations
out of funds wThich may be raised as hereinafter provided and which
shall be held inl trust for thle purposes of the Code ;
(b) To submit to the Admninistrator for his approval, subject to
such notice and opportunity to be heard as he mayl deemi necessary
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon whiich the funds necessary
to support such budget. shall be contributed by members ofth
Ind ust ry;
(c) iifter such budget and basis of contribution have been
appr~oved by the .Administrator, to determine and obtain equitable
contribution as above~ set forth by all members of the Indulst~ryl and
to that enid, if necessary, to institute legal proceedings thierefor mn its
SECTION 2. Each member of the Industry shall pay his or its
equitable contribution to the expenses of the maintenance of the
Code Au~thor~ity,, .eterminedl as hiereinabovec provided,. and subject
to rules and regulations pertaining thereto issued by the Adminis-
tr~a tor. Only members of the Indus~niitry compyng wi the Cia ode
and contributing to the expenses of itsamisrtonshreabv
provided,? unless duly exempted from miakinga such contributions,
shall be entitledl to participate in the selection of lmembers of the
Code Authority or to receive the benefits of anly of its voluntary
activities or to make use of any emnblem or insignia of the National
SECTION ;3. Thle Code A~uthorit.y shall neither incur nor pay any
obligation substantiallyy in excess of the amount thereof as estimated
in its approved budget; and shall in no event exceed the total amount
contained in the approved budget exce~t. upon approval of the Ad-
mninistrator; and no subsequent budget shall contain any deficiency
item for exp~enditulres in excess of prior budget estimates xcsrept
those whichl the Adm~ini.stratorol shall hanve so approved'.
ARTICVLE V7III---CostI FINomeC AND AIc.Courma'I
Thbe Code Author~ity shall clause to be forrmlalltedl methodlr s of cost
find inrg and ne~cou ntin g capable of use by all mIember~ls of the Industry,
andc shall submnit sulch~ methodt s to the Admlinistr~ator for review.
If approved by the Admlinist~rator, full information coner~ning~ such
mnethods~ shall be made available to all mi-emb>ers of th~e industry.
Therenfter, each memnber of the indlustry shall utilize such1 methods
to thle extent found practicable. Nothing herein containedl shall be
constr~ued to permit the Code A~uthority, any agent thcrerof, or any
member of the .indulst~y- to suggest uniform addlitio~ns, per~clntalges
or differentials or other uniform items of cost which are, desglcned
to bring about arb~itra ry uniformity of costs or pric-es.
ARTICE IX-~CosTs AND PRICE CUTTNG
S~EC'TON 1. Pricing Practices: The standards of fair com-~petition
for the inldustry with r~efer~ence to pricing practices are declared to
be as follows:
(a) Wilfully dtestrulctives price Cultting~r is an1 unfair method of
coimpetition and is forb~idd~en. Anly membell~r of the i ndlust ryJ or of any
other industry or the customers of either may at any time comp-lainl
to the Codet Authority that anyS filed price cons~titultes unfair comp~~le-
titionl as dest rulct ive price cutt( ing, imper~il ing small enterprise or tendli-
inlg towrd~~ monopol)0yr or the impairmnen~t of code wages and working
conditions. T'he Codl-e Auxthority shall within 5i days afford an
opportunity to the member filing the prices to ancwer such complaint
and shll~Z within 14 days make a ruling or adjustment thereon. If
such ruling is not co-ncurredc- in by either par~ty to the complaint,
all papers shall be referrecd to the Researnlch and Plarnning D~iv-ision
of NKRA which shall renderrl a report and recommendation thereoncI to
(b)~ Wheln not dclpCslapred eme~~.'crgen exists as to any given prod~luict,
there is to be no fixed minimum basis fore prices. It is intended that
sou~nd- cost estimating mlethodl s should be used annd that considr~tIation
shou~ldr be given to cos~its in the dlete~rmnination1 of pr~icing policies~.
(c) Wihen an emnerge~ncy eists as to any given produtlr, sale be~-
low ther stated minimuml price of such product, in vio~latio~n of See-.
tion 2 herleof, is forb~iddten.
SEC'TIO)N 2. Emnergency Provisions:
(a)~ If tfhe Admninistrator, after investigation shlall at any time
find ~both (1) that an em~ergency has arisen wTithin the industry
adve~sely affectinc small enterprles or wnges or Inb~or co.ndlition ,
or tendlingi towarcYi m~onopl~,y or other acute condlitions which. tendi
to dlefeat. t-he purposes of the Act; and (2) that the dletermination
of the stated nlnmirumu price for a sipec~ifiedl pr~odulct wFithin the in-
dustry for a limited period is necess~aryg to mitigate the condlitions
constitulting such emecrgency and to effectuate the pulrposes of the
Act, t~he Code Aut.horit~y may cause an impartial agency to investi-
gate costs andi to recommend to the Administrator a determination
of the sta.tedl minimum price of the product affected by the emer-
gency and ther~eupon the Admninistrator mlay proceed to determine
such stated minimumr l pr1ice.
(b) W~hen the Administrator shall have determined such stated
minimum price for a specified product for a stated period, which
price shall bet reasonably calculated to mitigate the conditions of
such em~ergency and t~o etfectuate the purposes of t~he National 'In-
dustrial Retcoveryr Act, he shall publish~ such price. There after, dur-
ing such stit~ed period, no member of t~he Industry shall sell such
specified products at a niet realizedl price below1 said stated minimum
price and any such sale shall be deemed destructive price cutting.
From time to time, the Code Author~ity may recommend review or
I'econsideration or the Aldministrator may cause any determinations
hereunder to be. reviewed or rec~onsidered and appropriate action
ARTICLE X-:PRIC'E LISTS'
SECTIN i. T~'ithin thiltbv (30) day~s after the effective date of this
Codte, each mlemlber' of thle Indlu.itry' shall file wTithi a confidential dis-
intberested agent of t~he Code Author~ity a complete schedulee indi-
vidually preparedl by himi of all his price lists, discounts, reb~ate~s,
allowances, and all other terms or conditions of sale, hereinafter in
this Article r~efe~rred to as price terms for his arnlious classes of
trade to become effective onl daft of receipt byv such confiident~ial
agTent. All1 new or r~evied price sterns shall be filed with~ a confiden-
t~ial agent of the Code Aiuthority and shall become, effective on the
tenth (10thz) day after net~ual receipt by such. confidential agent.
ImmllediatTel upon receipt thereof, such agenlt shall notify\ said mnem-
ber of the time of such receipt..
When any member of the Indlustr~y has filed any revisionl, such
m~emlber shall not file a higher price within fortly-elght (48) hours.
No member of the Indus~try ~shall sell or offer to sell any products
of the I~ndustry, for which price terms hav been :filedc pursuant to
the provisions of this Article, except in accordance with such price
No member of the Inldustry shall enter into any agr~eemlcnt, ulnder-
standing, combination or consupiracy to fix or maintain price terms,
norr calusg or attempt to cause any member of the Indlustry to change
his price! terms b~y the use of intimlidlation, coercion, or" any other
influence. consistent with the maintenance of the free and open
mYarket which it is the purpose of this Article to create.
copies of all filed priie terms or revisions or parts thereotf with
notice of etfect ive date thereof shall be s elnt imltaneously and
imrmediately to all customers who have applied therefore andi offered
to payS the cost of preparation and distribution, and to all members
of the~ Industry who hav\e prices filed; providecd, however, that such
mailing7s to members shall covecr only the same class of trade and
inlcludet onlyl prices on the items on which the mail-receiving mem-
ber has filed. Said lists or r~evisions or any part thereof shllnl
not be miade available to any person until released to all members
1 See parugraph 2 of ollrder approving this Code~.
of the Industry and their customers, as aforesaid; provided, that
prices filed in thle first instance shall not be released until the explira-
tion of the aforesnad thirt (30) day period after the approval of
this code. TIhe C~ode ALuthor~ity shall maintain a permanecnt file of
,all price, terms filed as herein provided, and shall not destroy ~ain y
part of su~chl record~ s except ulponwite osnto heAmn
istrattor. Upon request ~the Codle Authority shall furnish to the
Administrator or any duly designatedl agernt of the Administratoo r
copies of any such lists or revisions or pric~e terms.
Any member of the Indlustry may file, if he so desires, revisions
of his price sterns to meet a lower filed price, which shall become
effective on the date when thre revised list first filed becomes effective.
All prices filedi with the confidential agent of the Coder Authority
shall be available to all i~nterestedl parties as each may be concecrnedl.
SECTION 2. In. the case of inquir~ies for brids on a quannt~ity of
catalogued goods of one o r more items large enough materiallyr to
reduce the! cost of mlanufl ac~turle and distribution, a mannufact urer may
file a sp~eciall price for the specific qjuantity or qutnt~ities which the
c~onfident~ial agent of thle Code Authority shall immediately forward
to all manufacturers~ of the Article on r~ecordc, stating: size, qua:nt~ity
and price, but wiithiholding the name of thie party- asking for the bid.
Thle special pr1ice so filed is not to b~e quoted the culstomer until
ten dlays; a~fter failing except~ that in case of emergl~cen cyr wh~en ten days'
delays in completing the transaction would be serious, thle manufac-
t.ur~er byr agreeingS to accept b~illing for the telegsramns resulting, may
file by wvire and request the c~onfiderntial agent of the Code Authority
to notify by wire in. which case the price will be quotable on receipt
of a telegranm fromn said confidentiall ageTnt that all malnu~fnaturers of
the item or itemlis have been notified by telegram~.
SECTrION 3. If a manufacturer r6081Ves 811 inqujriry or inquiries
for goods to be madle to buyers' special design, no filing: of pr~ice
shatll be ne~ce~issary but such g)coods shall not be sold b~elow the failed
price for a similar standard ~dartile o~r design if such price exists.
If the article is not similar to a standard article or design, no price
need be filed and no report, made to said confidlential agent.
SECTIOx 4. Prices may be f~o.b. Ine~tary wFit~lh full fr~eighi-t pr1epaid
or allow-ed on shipments of 100 lbs. or more or on net amount of
invoice~ of $%i.00i or more. WOhen the bJuyer specifies other than the
cheapest, freight rocute the increase in freig~ht caused by h~is routing
shall be added to th~e invoic~e for the mlateral. Shlipm~nts by parcel
post, expIress, or. shipmncnts by freight w~eighin~g less than 1100 Ilbs.
shall be f~o~b. shippingr point with no freight allowed; except that in
Newf Yorkr City any shipment, regrdm~less of w~eighlts thereof, may be
delivered to store door without chanrge.
SECTIO:N 5., Members, selling from warehouses at other than their
point of .manufacture, shall meclude: in their prices a sum su~fficient
to cover all costs inci~enlt to such branch warehouse service. Thle
provisions of this Serction shall not apply to boat oars and padidles
or to life preservers, fendlers or marine cushions.2
Snoro 6. Returned goods shall be credited to the purchaser
theeof in ula w-~1henever thes goods are returnedi because of error
See paragraph 2 of order approving this Code.
or negligence on the part of the manufacturer, or defects in quality
or workmanship or impaired credit.
SElCrON 7. Special goods made and shipped in compliance with
order specifications shall not be returnable, except for defects in
quality or workmanship or impaired credit.
SECnON 8. Standard[ goods or special adaptations of standard
gosshipped in accordance with customer's order are returnable
bu nno case except with freight prepaid and subject to a charge
by t~he factory to retire any outgoing freight prepaid and/or cost
of reconditioning, if any, or handling.
ARTICLE XI -UNFAIR TRADE PRACTICEs
The following described acts shall constitute unfair practices.
Any member of the Industry who shall directly or indirectly, through
any officer, employee, agent or representative, use or employ any of
such unfair practices shall be guilty of a violation of this Code:
SECTION i. TO give, permit to be given, or directly offer to give,
anthion of value, for the purpose of influencing or rewarding the
actonofany employee, agent or representative of another in relation
to the business of the employer of such employee., the principal of
such agent or the represented party, without the knowledge o'f such
employer, principal or partly. This commercial bribery provision
shall not be construed to prohibit free and general distribution of
articles commonly used for advertising except so far as such articles
are actually used for commercial bribery as hereinabove defined.
SECTIONT 2. To continue to employ an employee or agent who splits
with the buyer h~is commission or other compensation from the seller
for the purpose of or with the effect of influencing a sale.
SECTION ;3. KZnowingly withholding fr~om or inserting in any quo-
tation or invoice any statement that makes it inaccurate in any ma-
SETIONv 4 Secretly offeringr or making any payment, or allow-
ance of a rebate, refund, commission, credit, unearned discount or
excess allowance, whether in the form of money or otherwise, or
secretly offering or extending to any customers any special service
or privilege not extended to all customers of thle same class, for the
purpose of influencing a sale.
SECTION 5. Issuance of credlit by a manufacturer for the return of
unused products not produced or sold by said manufacturer..
SECTION 6. Paym'ent by a manufacturer of any part of the cost
of periodical advertisements to be published in t~he name of a cus-
tomer, or customers, or paymlent for any part, of any catalog or
House Organ published by a customer, either direct or byr advertising
therein, which has the effect of secretly giving the culstomer a rebate,
refundt, or discount on goods sold t~o him, except that it shall be fair
practice to loan cuts of mannufacturers' products to customers or to
permit them to use without charge: any pages of tyvpe left standing
by a manufacturer with a printer.
SECTION 'r. Ship~pinng products of thle Indust~ry on consignment
except under circumstances to be defined by the Clode Autholrity where
p~eculiar cir~cums~tances of thle Indus~ltry r~equ~ire such practices subject
to the approval of the AdZminis;tra~tor.
SECTION 8. Selling or offering to sell anyr products of the Indust~ry,
except boat oars anId paddles, under any form of gurlrantee against
decline in price.
SECTION 9. VIlfully inducing or attempting to inlduce the breachr
of existing contracts between competitors and their customers by any
false or deceptive means, or interfer~ing with or obstructing the per-
for~mance of any such contrac(tuall duties or services by any such
means, with the purpose and effect of hamlpering,, irnjrng or emn-
barranssing competitors in. their business.
SEC~rIon 10. B3randingr or mnark~ing or packing any goods in any
manner which is intendied to or does deceive or mlislead~ purchnse~rs
with respect to the brasnd, gralde, quality, quan'tity, origin, size, sub-
stance, character, nature, finish, manterial, conrtenlt or preparation of
SEc:TIjnr 11. Defa-ming a comp~etitor by falsely imp~uting~ to him d~is-
honorable conduct, inability tos perfform contracts, qucst.oionable credit
standring,rr or by other faclse r~eprese~ntation1!, or by falsely dispar~aginlg
the ge~ndet or quality of his goods.
SECrTINu 12. Pub-lishingc or circulaltinlg unju. tifiedl or ulrnwarrantedl
thr~e~at~s of legal prlcc~~cdings- which tend to or have the effect of har-
assing competitors or initnidai~ltingc~ their I1Cfustoers~.
SECTroN 13. Accepting~ an orderli or contract at a de~finlite price, for
an indefinite quantity or without a definlite t~imel limit, at the ex-
p~iration, I of which any unshipped~l portion of the order shall be offered~.
For shipment and invoiedi as if shlippedl.
SECTION 14-. Curlke!il~li Or lpP-lillliltng (116 CRI1celltilOI Of 01' OU~1s
or un~shipped portions of ordelrs for special goodsJ or for spiecidlly
large quantities of r~egullar good<, made in complialnce with terms or
border, before secur~ing~ front pul~~r~lchas full payment for all cocst.s
inlcurredl~ by thne manufacturer in relation to the unshipped portion
and a furthler payment on the shipped~l portionl of an advance in price
proportional to t~he increased4Cl cost of production of thne smaller
SECITIO)N 15. To imitate or simul~late the trade mark, trade naml~le,
pnekage, w~rarpper, or label of a competitor's p~rod-uct to such a de-
gree as to deceive or have a tenden~lcy! to dce~-tive c customers.
hSEC.tICox 16. DjCillrimina tion)i between purchasers" of th~e same~t defi-
nition biy th7e sale of any article having a published price, at any
price below thle seller's p~ublishedr prlic~e by me~anr s of direct or indirect
price concessions,, or by menstH1 of any pr1ivilegae no(t extendedt~ to pur-
chasers generally, except, as provided in Article I[X.
SEC.TION 1"7. TO glV6 ~e mo RYOft-17ble~r ri~l>Pl.ln~ts and/or sterns than
the following, except boat on rs and~c paddles:
(a) No more favorable sterns thanl two (2) percent disco~unt shall
be gra~nted- aL cusltomerp on in-voices dated from th~e 1st to thre 153th of
any; month~, if payment is maniled( or othIerw\ise made by the 25th of
the same month.; or on invoices dat~ed- from the 16th to the end of
the month, if payment is mailed or othetrw-ice madlc-e by the 10th. of
th next succeeding month.
(b) Termns shall be net ensh~ 30) da~ys from discount date when
essh discount is not taken.
(e) Excep~t that tenl days' addt'itionnl timle onl all termj and~ dis-
c~ounts under this Section may be allowed on shipments to or fromr
the Pacific Coast or Alaska.
(d) The rate of interest on all past-due invoices, or on any unpaid
portions thereof, shall be not less than the legal rate of interest of
the respective state in which the sale is made, from the due date
of invoice until paid and shall be charged whenever a debtor has
failed to pay for goods purchased within terms as set forth in the
foregoing paragraphs of this Subsection, when said interest amounts
to five ($5.00) dollars or more.
SECTION 18. Granting more favorable discounts and,'or terms in
the sale of boat oars and paddles than the following::
(a) Two (2) percent discount for payment within ten (10) days,
or p~aymelnt in full within thirty (30) days of invoice, except that
frequent buyers during any month may be allowed two (2) percent
discount for paymecnt on or before the tenth (10th) of the following
mon th .
(b) In the 1\fiddle WCestern States only, orders placed in the fall
by large jobbers for shipment in January or February may be in-
voiced not later than Ap~ril 1 and shall be payable not later than
Mfay 110 of the delivery year.
(c) In the Pacific Coast States only, such shipments may be in-
voiced not later than February~ 15 and shall be payable not later
than Mlarc'h 1 of t~he delivery year.
(d) The rate of discount allowed on prepayment of invoices shall
not exceed six (6) per cent per annum.
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or disclrin-
na~te against small enterprises.
SECTION i. This Code and all the provisions thereof are expressly
made subject to the righlt of the President, in accordance with pro-
visions of Subsection (b) of Section 10 of the Act, from time to time
to cancel or mlodify any order, approval, license, rule or regulation
issued under said Act.
SECTION 2. SUCh Of the prOviSlons of this Code as ar~e not required
to be included herein by t~he Act may, with the approval of the
Administrator, bie moditied or elimiinated in such manner as mnay
be indcicaf~te by the needs of t~he p~ublic, by changes in circumstances,
or by experience. Such modifications or elimiinations mayS be based
on applications by the Code Authlority or any member of the In-
dust!ry. All the provisions of this Code, unless so modified or
eliminated, shall remain in effect until June 16, 1935.
AnnCEw XIV--PmCE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be mlade mlore diffcult, of consummatin~t if prices of goods and
services increase. as rapidly as wages. it is recognized that price
increase except such as may be reqjuiredl to meet individual costs
should be delayed, but whien madce. such increases should, so far as
possible, be limited to ac~t~ul additional increases in the seller's
ARTICLE XV--EFFEC.HYE D.vrE
This Cost. shall be ~ffecctive at 12:01 A.M. On the telith (1Oth~)
calendnr day\ after its apprvl~c~n byr the Administrator and shall
conlt~inue mn effect until June 16i, 1935, or the ear~liest date prior there~-
to on which thec Pre~sidefnt shall b~y pjroc~lamlt~ion, or the Con~r~ess
shall by Joint Resolution, declare that the emergency recognized in
Section; 1 of the National Industrial Recoer~y Act has endedc~.
Approved Code No. 000(.
Regisitry No. 1114-31.
UNIVERSITY OF FLORIDA
3 1262 08856 0759