NATIONAL RECOVERY ADMlINISTRATION
C ODE OF FAIR C OMPE TITION
For sale 4by h Baperlatednden of Documents, Washington, D.C. Pric 5 ce~nt
Approved Code No. 440
Registry No. 330---04
AS APPROVED ON MAY 22, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
Th'kis p~ublicationm is for sale by the SupDerintendent of D3ocuments, Government
Printing Office, Washington, D.CI., and by district offices of the Bureau of Foreign
and Domestic Commlerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Oftfice Building.
Birmingham, ASla.: 257 Federal Building.
Boston, MIass.: 1801 Cust-ombouse.
Buffalo, N.Y.: Chzamber of Commerce Building.
Char~leston, SOC.: Chandel~r of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Clevelanld, Oh:o: Chamuber of Commlerce.
D~allas, Tex.: Chamber of Commecrce Building.
Detr~oit, M~i *h.: 801 First Na~tional Bank Building.
Hloustonr, T'ex.: Chamuber of Commerce Building.
Indianaplcrirs, Indl.: Chambelrr of Commerce Building.
Jackisouville, fcla.: Chamber of Commerce Building.
`Kansas City, M~o.: 1028 Bacltimocre Avenue.
Los Angeles, Cafif.: 1163 South Broadway.
L~ouisville, Ky.,: 408 Federal Building.
Metmphis, Tenn.: 229 Federal Building.
M~inneaptlis, Mtinn.: 213 F~~eleral Building.
New Orleans, PLa.: Room 225-A\. Custombouse.
New York, N.Y.: 734 Customhouse.
Norfolkr, Va.: 4106 Easpt Plume Street.
Ph~iblr'lclphlia, Pa.: 422 Commercial Trust Building.
P~ittsburgh,. Pa.: Chlamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, M\-o.: 508) Olive Street.
San Fran~isco, Calif.: 31.0 Customhouse.
Settle, Wa~sh.: 809 Federal Office Building.
Approved Code N~o. 440
COD)E OF~ FIt7R COMIPETITI[ONi
DOWEL PIN MANUFACTURING nINDhUSTRY
As Approvled on May 22, 1934
CIoor. or FCAIR COMPETTIITIN FOR THE DOW\EL PIN AfNlh~'TT~fYERTNG
An1 app~licastion having~ been duly made pursnn"t to and in full
comlpliance w aith the provisions of Title I of the N~iational Industrial
Recovecry Act, approved June 16, 1933, for app~roval of a Code of
Fair Competition for the Dowel Pin M~anufac~turingr Indfustry, an~d
h~earings having been duly held thereon and thle annexe~ report on
said Code, conltining findings with respect thereto,, having been madrre
and directed to the Prelisid~ent :
N'OW THERFFORiE, on beha~lf of the! Precsidenlt of the Un~rite~d
~t~ates, IHg S. Johnsoi~n. Adminiiistrato~r for TInduistriail Recovery,
pursuant to authority vested in me by Exccutive Ordecrs ofth
President, including Excutive Order XG6543-A, danted Decemlber
80, 1933, anrd otherwise* do hereby incorporate byT reference said
annexed report and a; dond that said Code compr;lies in all recspects
with rth pertinent provisions and will promlote the policy and p~ur-
poses of said Title of sarid Acet; and do hereby ordelr thant ;aid Cod~e of
Fair Competition bez andl it is hereby approved.
HoonI S. JoEINSON
Administiafrao for IIndustrial RecovLery.
A. R. GASCTY,
~i~vision. Admin istrator.
Mai~y 8, 1934.
0192'C5*-5 S-35-84 (829)
REPORT` TO T`HE PRESIDENT
The W~hite House.
SIR: This is a report on. the Code of Fair Competition for the
Dowel Pin Industry, the hearing having been conducted in Wash-
ington, D.C. on April 27, 1934 in accordance with the provisions
of the National Industrial Recovery Act.
PROVISIONS ONi HOUl~RS AND WAGES
Th~e maximum hours for employees pro-vided in this Code are
forty (40) hours per wteekr and eight (8) hours per day. WC~hen pro-
duction dlemands it, a tolerance o~f eight hours per week is allowed,
provided this tolerance shall not be allowed for more than, six weeks
inl any six months' period, and one and obne-third times the normal
htourly3 rate is paid for all hours in excess of forty per week.
Employees engaged in emergency maintenance and repaiir work are
excepted from hourlyr limitations anld are allowed a one and one-third
ovetim rte f ay. Engineers, firemen and shipping clerks are
pvermitted to work nine hours per day but provision, is made that
they shall be paid not less than one and one-third times the normal
hourly rate for all hours in excess of fortyi-five per week. WT7~atch~men.
are permitted to work fifty-six (50G) hours per week. T'he usual
exemption is granted to executive and supervisory employees regu-
The minimum age provided in this Code is 16 ylears but in. hazard-
ous occupations this age limit is increased to 18 years.
ECONOMIC IFECT OF THE CI)DE
The ann~ual sales in this Industry dlecr~eased 64: per cent from 1929
to 1932. The Dowfel Pin Industry is closely related to the Fiurniture
Industry and, conseqluently, the volume of sales is to a great extent
dependent on thie activity in the Fuxrniture Industry. Flirom esti-
mates made by numbe~l~ rs of the D~owel Pin Industry, when sitat~istic~s
for 1933 are compiled, an increase of approx~imatelyl 39 per cent over
the 1932 level is expected.
The average wor~k-week for the year 1933 was 35i hours per w~eeki
and the mnaximum was 40 hours per week as c~omplared. with, 45 hours
and 49 hours, respectively, in 1929. An increase in employment in
1934 hras brought the average workl-week~l to 40 hours.
M~inimnum wnges for the year 1933 were reported to be 26.3 cen~ts
per hour. The adoption of the proposed minimum wagae rates is
exp'cecte to clause an inlcrease in thec pay'rolls of the Trulu:Stry, andC
tis, toge(therI with theC jlC''Incras in average~i number~c of hou,~rsc perI wcr~k-
wecek w-ill resullt in an estimatedC~ 1~750 inlcreaSe of pur1Ichasing~ power
over that of 19J33.
The ssisnut eput Adinistr.7rato in hris final report to mel onl
salid Codeaving fansul a~s he~~re se~t f~orth~ and; on the~ baslis of all
thec proceed~ings ini this matter:
(ai) Sa~id~ Codle is wFell designed~ to promoiicte the polkies anlld puir-
po'ses of TIitle I of thec Nationa~ll Indu iitrial Rccovetry Act, includlingr
r~emova:l of obstrulctio nls to the frece flows of inter~staite and(' foreign
collnunero whiichl tendi to dimiinish the amounlll t thlereof and~ w.ill prIo-
vide for~ the genlern1 w~elfar~e bry pi~romorting the organization of induls-
try for the purpose of cooperative action amlongr the tradc g~oulp::,
by inducing andl maintainingr united] action of labor and manacge-
ment under ad~equate governmeltntal sannctions and Sulperv\iSion,ll b
eliminating unfair competitive practices, by promoting the fulilest
possible utilization of the pirsent pro'ductlive capacity of ind~ustries,
by voiing unue restictio~n of pr~odut~ion exceptt as may be
temnporarily r~equiired), by increasingr the consumption of industrial
and~ agriculltural productss through :Increasi n g pur~chansing powb
redlucngr andl relieving unemp!lomlent,, by Improving standalrds o
labor, and by otherw~ise rehabilitartinr industry.
(b) Said industry normalnly employs not mnore than 50).(000 em-
play'ees; and is nlot classified by mle as a major indtustr~y.
(c) Thle Code as ap~proved~ comnplies in all respects w\ith~ the per-
tinent provisions of satid Title of said Acet, inclulinn e withiout hmI1-
tation Subsection (a) of Section 3, Subsection (a) oFSection 7, and
Suibsection (b") of Section 10 there~f ; and that heapplicannt assoi-
ciation is gtrl representative of the aforesaid industry; arnd that
said association imposes no mecquitable restrictions on admnissionl to
(d) The Code is not designed to andl wFill not permlnit monopo~lies
or monopolistic practices.
(e) The Code is not designedl to and wvill not elimiinate or oppr~iess
small enterprises and wil not operate to discriminate against thlem.
(f) Those engaged in other steps of the economic process have niot
been deprived of the right to be hear~d prior to approval of said
For these reasons, therefore, this Code has been approved.
HUGH~no 8. JOHNSON,
bAhr 212, 1934.
CODE OFi FIR~II[ COMPETITION FOR THE DOWEL PIN
ARncT IC --URPOSES
To effect the policies of Title I of the National Industrial Re-
covery Act, this Code is submitted as a Code of Fair Competition
for the Dowel Pin Malnufacturing IndustryS, and upon approval
its provisions shall be the standards of fair competition for such
Industry and be binding upon every member thereof.
The termt Ind~ustry as used hleretin includes the manufacture
and originaIl sale of dowel pins (round pieces of wood commonly
used to join wood and other materials exrcluding;, however, com-
merciarl dowerl rods)c in ~all stages of manufacture, and such related
industries as may from time to time be included under the provi-
sions of this Code.
Thle term. member of the industry as used herein includes,
butwihou lmiationo terI: any individual, partnership, association,,
cororaionor the frm. of enterprise engiaged in the industry,
either as an employer or on his or its own behalf.
The term r" employee as used herein includes any and all persons
engaged in the industry, however compe~~nsated~ or employed except
a member of the industry.
The termn employer as used herein includes anyone by wh~om.
such employee is compensated or employed.
Th'1e term '"Association as used herein shall mean the Dowel
Pin Madnufacturers Association.
The_ term!ls President ", "Act ", and "Administrator as used
herein mean r~espectively the President of the UJnited States, Title
I of the National Industrial Recovery Act, and the Administrator
for Industrial Recovery.
SECTION 1. nMGxinum Hiours.-N-I\o employee shall be permitted
to work in excess of forty (40) hours in any one week or eight
(8) hours in any twenty-four (24) hour petl'riod, with the follow-
(a) Engbineercls, firemen, and shipping clerks (wmho shall, not be
permitted to work, however, in excess of nine (9) hours inl anly
twentyr-four (24) hour period; provided, however, that such, em-
ployee-s whio work in excess of forty-five (45) hours in any one
week shall receive not less than one and one-third (1j/s) times
their noormal rate of pay for all hours, or fractiojns thereof, in ex-
cess of forty-five (45) in any one week.
(b) 'at~chmen, wh)o shall not be permitted to wocrke in. exzcess of
fifty.-si (DG) hoursir in aniy one weeck.
(c) Inl at peak perIiodl any empl~loyee miay be p~ermittedl to wolrk
foirty-eight (-is) hiours in any onel wecek forl niot mririe thian six (6)
weekl~s in any\ six (G) mnonthls periol.
Seeox 9.Copenatonfor) Orri8-n emloeetin excethi
empiloyeecs coveredt by sulsecctionsl (a1) and (b) o eto fti
Artic~l? who1( works1~ in excrss of forty (40O) hoursI' inl anyl crne~ weCk
or e~ight (8) hours inl anyl oneC day3 shal~nl be comllpenslated at the rante
hou~rly13 rate fori all sulchl hours or frac~tion: thereocf..
tIcle shiall no(.t happily to~ travecling salesme'n, or to emplloyee.'(.- nae
ini emelrgency malintel~nane or emlergcncy reI~pair workl. or to pe~1scriso
cemrpfiloye in a manage~lr(lial or. exeSCu'tiveC cap~c~ity who earn I~riiularly
tlhirty~-fivel dollars' (@3.00)() per ceek. or mnore; prov:\idedt. howeve~r,
tha~t emplloyeesi engaged in emergcy~'lY mint nncnic:e and emelrgency.
rearwoksall be pa;id not lessi tha ~171one anld one-thirl~ (1L5S) t imesc
thleir Il~norml houlylll rate for all hlours~, or fractions thelreocf. wvorkred
in exce!--. of weight (8) hlourls in any one day and/or forty- (-10) hours
S~cTlION 4~. JUJ4NNT aT~imber ofDal.<.-NSo :'mployee' C shall be
p'ermittc vl to w-ork moicre than six (0) diays mn any i(ve1 ("7) ctay
SECTIuxS ,5. Evaploym,, 1i nt1 by Sevleral Employer)~.-S.-o emplol\rer
shllkownly peCrmlit. ny! 'mIployee to or for alnS t-ime~ whfch ,
whn-ll addedtcl to, the timle spent at wsorkr for another
.Cj:nox,, C;. Anpi17Cloyrs Doing WoC~rk: Ordl~inar;i!U PufOformed By1
Employ~,ll es.-A-~ny employerP 1 who dones the work of an cengaltrrr : shall
bet subj ec(t to thel provisions' of thlis Code as to hours otf labor to the.
extent permni~tted by the A~ct,
SC~c.nox 1. Mji~Unimn 10aolrs.- NoI employees shall be pa~id in. any
p~ay pe''i~ri less than at thre ratel of fortyi ehnts (40::) pr~l hour.
SI~maxC, 2. Piece-Work Com~pen nsatonl-.inti n/;urnWae-Ti
Arlticle estabjlishesc a m~irirnium ratte of pay wh~ichl shall appllly reg:ard-
less~ of sex or of whether an employEle Is comlpensated'l on a time raute,
purew~n orkl. or oter basis.
SECTIION 3. T~g Adju~ns.tmeints-Wti sixty (C;) day\s after the
e~ffectivce date here~of, emrl oy~ers shaall adjust c waeched~ules in eqpui t-
nIble relation to t~he nllinimulnl hourly rates providecd in t.hlis A~rt~icle,
so, far as such adjulstmlents have not beecn made subsequelt to Juin 16S,
1933;, but in no case shall hourly or w~eekrly rates of pay be reduced,
irres~pective of w-hethIer comlpensaltion is actually panid on an hour!ly,
wecekly or other basis, nor shall any wages be less thann at the minii-
mum ate herin rovidled. Eanch member of the Industr~y shall
p-umromtly hrepor al such adj ustments to t~he Code! Authority. The
Code Authority shall promptly report all such adjustmecnts to the
SECTION 4. Female employ-ees performing substantially the same
workr as male employees shall receive the same rate of pay as male
SjECTIlON 5. HE~ll:'c'-.5 epped~ Persons.--A person whose earnnmg capae~-
ity is limited because of age or -phyrsical or mental handicap mnay be
employed on light work at a, wage below the minimum established
by this Code~ if the employer obtains from the State Atuthrority or
other age~ncy de~signa-tted by the United States D3epartment of Labor
a cer~tific.ntel authorizing his employment at such wages and for such
hours as shall be stated in the certificate. Such authority or agency
shall1 be guided by the instructions of The United States Dejpar~tment
of Labor in issuing such certificates. Each employer shall file
monthly with the Code Authority a list of all such persons emnployed~
by himl, showing the wages paid to and the maximum liours of work
for suchl em~ployee.
SCE(:'Iw(, 6. Malnne~r of Paymsrent.-N~uo employer shall make p~ay-
mnent dulle for services rendec~lred- except in the form of nego~tiable cur-
ren~cy or checksl; payable on demand, and no deduction shall be made
except wlith thle employee's assent or as required by Federltn or Statte
laws. Paymentl1 of all wages shall be at least twice in each, calendar
ARTICLE V-~GENERAL LABOR ~PBOnsI;insS
SECTION 1. Childc Labo~r.--No person under sixteen (16) years of
age shall be employed in thle industry. N?\o perso~c n under eigh~teen
(18) years of age shall be employed at operations or oeccupartio-ns
which are ha zn rdous in nature or dangerous to health. The Code
Authority sha~ll submlit to the Adm~ninis~rtrator for approval within
ninety (00)O days after thle effective date of this Code, a list of such
operations or occupations. In any State an employer shall be d-ceemed
to have complied~ with this provision ~a ton agbe if he shalll have on file
a certificate or permit duly signed by the Authority in. such State em-
Spowvered to issue employment or age certificates or permits showing
that the employee is of the required age.
~Ec~TION 2. Provisions from the Act.--(a) Emplyloyees shall have
the right to olr ganize anrd bargain collectively through representa-
tives of their owin choosing, and shall be free from the interference,
restraint, or coercion of employers of labor, or their agents, in the
designation of such rep~resentativea or in self-organnizatio or in
other cnclc~rted activities for the purpose of collective bargaining
or other mutual aid or protection.
(b) N~o employee, and no one seeking employment shall be re-
quired as a condition. of employment to join any compal~n y union
or to reframn fromr joining, orgammzing, or assistmng a labor org~am-
zation of his own choosing.
(c) Emp~loy~ers shall comply w7ith the maximum hours of labor,
miminium rates of pay, and other conditions of employment ap-
proved or prescribed by the President.
SECTION 3. Evasionz Throug~h Subterfuge.--No employer shall re-
classify 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.
SECTI'ON 4. Xf/8lC80? 8l for SaZfetyj and Health.--Every employee
shall provide for the safety and health of employees duringth
hours andl at the plaeas of their employment. )Standardcs for Fafety
and healthl shall be submnittedd by the Code Authority to thle Adinnis-
tration for approval within six months after the effective date of
iECITION 5. State IcLaws.--No provOision inl this CodeI shall super-
sede any State or Federal Lawm which imposes on employers more
str~ingent requirements as to alge of employees, wage~s, hours of work,
olr as to safety, healthi, sanitalry or grenerall worklina conditions, or
insurance. or fire pr-otection, than are imposed by this Codec.
SEenIoS (1. Posting.-A~ll emplloyers shall keep co~ntinuoulsly p~osted
copies of this Codec in conspicuous places accessble to all em ployees.
Every member of the industry shall comply with. all rules andl r~eg
ulations relative to th~e posting of provisions of Codies of Fair Com-
petition or othlerwrise whlich may from time to time be prescribed by
the A dminriist rato r.
SEC"PION 7. Com~plaint or~ Chlingu Fridenlce.-N emnploye~e shai~ll be
discharged because he hias made complnint or grivecn evidence with
relipect to an ll ege violation of thle C~ode.
SIcnowN 8. Stabilization of Emp~loyment.-Each employer shall,
to the best, of his abilitys, so ad~minister work in hnis charge as to pro-'7
vidle thle maximumn practical con~tinuity of emnploymelnt fior his per-
sonnel. Each member of the Indu~t ry shall makef a st udy and sulbmit
a plan for regulanrization andl stabilizationl of emlploymentcn in his
pflant and~ shatll submit sulch plaln to thec Code'l Authorit~y.
SCTenoh 9. .Evzasionl Througrh D~is~charging andr Reh:r~inlg or' Replao-
ilng Emlol~3yees.-E employees now cmployedl at wages abjove th~e mninli-
mum shall not be dlischalrged and ree~mp~c loyed or rep~laced at a lowecr
rate of pa~y, fo the purpose of evadin~g the Ilabor pr~ovisionls of this
ARTICLE VTT-Ona.xxx zanIo -POW~ERS AND DUTE OF THDlE CODE
OrORGAIZATION ANuD CON;STIUTTPTON
SECTION 1. A Code Authlority is hereby establishled consistingr of
five members to be seletedd in the follow~ring manner:
(a) Three (3) members of th~e Code Aulthority shall be elected
from among th~e members of the Association, andl to (2) members
of the Code Au~thorityr shall be elected from among non-mecmbers of~
(b) WVithin twenty (20O) days after the effective dat~e of this Code,
the Secretary1 of the D~owel Pin Mlanufacturers' Association shall
elcicall a meeti ngI of the memer of the Industry3 or Iethef pupse of b
elctngthe Code Authority. Due notice of hsmenghllb
sent by Ieregistered mail to evecry member of the Industry or such
notice may be given byv such other methods as will insurle all~ members
of the Industry being informedJ of such meeting. its purposes and thle
method of participation therein. Voting shaill be by person, by
mail, or by proxy.
SEOTION 2. In addition to memberships as above provided, there
may be not more than three members, wtotvtt ekona
Administration members, to be appointed by the Adminlistrator to
serve for such terms as he may specify.
Samox130? 3. Each tradolr or industrial association directly or indi-
rectly participa;tinlg in the selection or ac~tivities of the Code Author-
ity shall (1) impose no inequitable restriction on membership, and
(2) submit to the Administrator true copies of its articles of asso-
cialtion, by-laws, regulations, and amendments when made thereto,
together w\ithl such other information as to membership, organization,
and activities as thze Administr~ator may deem necessary to effectuate
the purposes of the A~ct.
SECGTION 4. In order that th-e Code Authnority shall at all times be
truly reprewntativetir of the industry and in other respects comply
with the provisions of the Act;, the Admuinistrator may prescriboe such
hearinrgs as he may deem proper; and thereafter if he shall fin~d that
thne Codle Authority is not truly representative or does not in other
repcl''ts comaply- with the procvisions of the Act, may7 requ~iire an ap-
propriate modification of the Codce Authorit~y.
SECTION 5. Nothingr contained in this Code shall consrltitlt~e the
members of the Codie Author~ity partners for any purpose. NJor
shall anyV member of the Codle Authorit~y be liable in any manner to
anyone for any act of an~y other member, officer, age~nt or employee
of the Code Authority. Nor sallaT any member of the Code Au-
tho~ri;ty exercisings reasonable dliligence in the conduct of his duties,
hlerelndetr, bec liable to- anyone for any action or omission to act
under this Code, except for his owtn w~ilful malfeasance or non-
SeemsI~i 6. If thef Admllinistra~;tor shall at any time determine that
anry action of a Code Author~ity or any agency thereof maxy be unfair
or ujus or ontaryto the Ipublic interest, the A~dministrator may
or equire th sch action be suspended t~o afford an opportunity for
investigation o-f the merits of such no~tion and further cons~ilferation
by such Codie Authority or agnclny pending~ final action whr~ich shall
not be effecti\ e unless thle Ad~-ministrator approves or unless hle shall
fail to d~isappr'ove after thirty (30) days' notice, to himt of intention
to p~llr~nreal wic-th sucrh faction in its original or modlified~ form.
PuI'.\'l_3N AND DUTIrES
An mIIN 7~. Subject to such rules and regulations as many be isonled
by th~e Ad-ministrator, thle Clode Authority shall have the folrlowingr
p~owers and duties, in addition to those authorized by other provi-
sions of this Code.
()To insure the execution of the provisions of this Code and to
provide for the compr--lian ce of the industry wil erth the ronvisions of ther
(b) T~o adopt by-laws and rules and regulattions for its ptr~oc~edure.
(c) To obtain from members of the industry such information and
reports as are required for the administration of t~he Code. In ad-
dtition to information required to be submittedt to the Code Au-
thorit~y, mlembetr~s of the industry subject to this Code shall furnish
such statistical information as the Administ~rator may deem necessary
for the purposes recited in Section 3 (a) of the ABct to such Federa~l
and State agencies as he may desigpnate; provided that nothing in
th~is Code shall relieve any member of the Industry of any existingr
ollbligationls to furnish reports to any Government agency. No
individual report shall be dlisclosed to any other member of the
industry or aIny other par~ty xces~pt to .cu~ch other Governm entall
agencies as may~l be diret~cteldby the Aidministrator.
(d) T'o use such tradle n~~,cdations and other an~ciecis as it deems
proper' for the car''ilryn out of any of its activities provided for
hiere~in. provided that nothing herein1 shall re~liev\e the Code Alut-horit~y
of its duties or Iresponsibilities under this Cod~e andl that such tradle
associations and agencies shall at. all times be subject to and comnply
with the provisions hereof.
(e) T'o make recommendattions to thze Admninistrartor for the
codes, if any, as may be related to or affect members of the industry.
(flf) (1) It being found necessary to support the Adlministration
of hisCod, i orerto ffetuae te olicyofteAtndo
maintain the standards of fair competition established hereunder,
the C~ode AI~uthEtorityV is authlorized~:
(a) To incur such reaisonable obligations as are necessary and
proper for the foregoincrngr purposs and to meet such obli-
gations out of fu~nd~s which~ shall be: heldl in trust for the
purposes of th~e C7ore ad ranised as hlereina~fter provided;
(b) T~o submit to the Admninistratorr for his approval, subject
to such notice and opportunity to be heard as he may
1. AnLr itemized budget~c of its estimalted expenses for the
foregoingi purposes, and
2. An equ~itable basis upon. which the fu!nd-s necessary to
support such budget shall be ~ontr~ibutedl by- all memb-
berss of the Industry entitledl to thec benefits accrumng
from the mnainltenance of such standards, and the admin-
(c) After such. budget and basis of contribution have been
appr~ovedi by th~e Ad~ministrator, to determine and collect
equitable contrib~utionls as above set forth, and to thrtt
end, i~f nece~ssary, to instilrtu. 1ite legal proceeding therefor
mn its owvn namle.
(2) Each member of the industry shall be lfiab~le for his or its
equitable contributionn to the exp~enses of thle mnaintenance of th
Code Authority as herina~iibove provided. Only members of the
industry complying writh the Code and makingi such contribution
shall be entitled to participate in the selection of the members of the
Code Authority or to receive the benefits of its voluntary activities
or to make use of any N.R.A. insignia.
(g) To cooperate with the Administrator in Ireglatingr the use of
any N.R.A. insignia solely by those members of the industry whio
have assented to, andl are complyingr within, this Codle.
(h) To recommend to t~he Adm~inistrator any action or measures
deemed advisable, including further fair tracle practice provisions
to go-vern members of the industry in their relations with each
other or with other industries; measures for industrial planlning
and stabilization of employment; and including modifications a~
this Code which shall become effective as part hereof upon approval
by the Administrator after such notice andl her~inlg as he may
(i) To appoint a Trade Practice Committee which shall meet
with the Trade Practice C~ommittees appointed under suchn other
codies as may be rei-ntedt to the indlustry3 for the purpose of formulat-
mng fair trade practices to govern the relationships between employers
under this code and under such other codes to the end that such
fair trade practices mlay be proposed to the Admcliniistratorr as am~end-
mennts to this Code and such other codes.
(j) To provide appropriate facilities for arbtitration, and ob'tject
to the azpp~rovall of th~e Admlinistrator, to prescribe rules of procedure
and rules to effect cumpill.liance witih aw-;ards and determina~tIons.
ARTICLES 711I-TRADE, PRACTICE RUL.ES
XItTTLE i. Ihacc-urates Adcrti-' ing;13.-NISo member of the industry
shall publish advertising (wThether printed, radio, daisplay~ or' of any
other nature), which is misleading or inaccurate in. any material
particular, nor shall any member in any way misrepresent any goods
(including but without limitation its use, trademark, grade, quality,
origin, size, sulbstance, character, nature, finish, material content
or prepa2ration) or credijt terms, values, policies, services, or the
nature or form of the business conducted.
RULE 2. Fn &e Billingy.-No member of the industry shall knowr-
ingrly wRithholdt fromt or insert in any quotation or invoice any
slrtatemelnt that makes;F it inaccurate in a~ny m~ater1ial particular.
RULE 3. In7ncOcterate L~abelling.--No member of thle industry shall
brand, or markr, or pack any good)~s in anly manner which is intended
to or does deceive or mlislead purchaser with r~eispet to the brand,
grade, quality, quantity, origin, size, substance, character, nature,
finish, material content or preparation of such. goods.
RULE 4. Defenal7tjion.-NY o member of the industry shall dlefamne
a competitor' by falsely imputing to him dishonorable conduc~~lt,
inability to perform contracts, questionable credit standing, or~ by
other false repr~esenta-tion, or by falsely disparaging the grade or
quality of his goods.
RULE, 5. Threats of Lao Euits.--No member of the ind us tr shall
publish or circulate unjustified or unwiarrantedi threats of legal
proceedling~s which tend to or have the effect of har-rassing competi-
tors or intimidating their customers.
RULE~ C. Secret Rebates.--No member of the industry shall secretly
offer or makie any payment or allowance of a rebate, refund, com-
mission credit, unearned discount or excess allowance, whether in
the form of money or otherwise, nor shall a member of the industry~
secretly offer or extend to any customer any special service or
privilege not extended to all customers of the same class, for the
purpose of influe~ncing a sale.
RKULE 7. CO1717ercial Bribe~ry.-N member of the industry shall
give, permit to be given, or oiffr to give, anything of value for the
purpose of influencing or rewarding the action of any employee,
agent, or representative of another in relation to the b~usiness of
the employer of such employee, the principal of such agent or thec
reprlesentedl party, without the knowledge of such employer, prmn-
cipal or p~art~y. This provision shall not be construedrc to prohibit
free andl general distribution of articles comm~only used for ad-
vertisingr except so far u ;s sw-h~l articles are actully usel~r;d for coml-
merciall brib~ery as hereinablove decfined.
RULE 8. Inri~lcingr fI~rtlc~h of K;ristin Contracts.-- No membert ofE
thle indrustr1y 1;hall w\ilfullly indu~ce or attempt to indluce the brenclh
of existingr conltrac~t.- betweenl comllpetitors andl their customers by
any fallse or decepctive means, or inltrrfere with. or ob~str~uct thne per'-
formancel.~ of anyl su1chI contra~ctual dutlies or Serv\i(Ces by any such
mleanls wit~h the pulr~pse andl effect of hamlpering~, injuringj or em-
b~airrssing ~comlpetitor~s in their bus-ine~ss.
RouL: 9. CorreionU).-No( members~ of the indlustry~ shall require that
the purchase' or lease of any goods be a, prerequisite to the purchase
or Icase of any other goodls.
RU;LE 10. Destru'lctj'iv~je P rice cutti.-
(a) The Pr~inciiple.-
(i) ]Destructive price cutting is an unfair method of competition
and is for~bicdden at all1 times, irrespective of the existence of an
(ii) W'hen no dcclarlled emlergecncy exists as to any' given product,
there is to be nzo fixed~ minimlum basis for prices bu~t it is Int~ended
that s~ound cost estima;;ting methods should be used;
(iii) Wh~en a n eme~rgncy exists as to anly given, product, sale be-
low the lowest reasornable cost of such product, in violation of sub-
section (c) hiereof, is forbidden.
(b) Un~iforml Cost Accountinlg.-The Code Authorityr shall cause
t~o be formlatllned an accoulnting~ system and mnethnods of cost findina
and 'r esimat ng capalet of use by all members of the Indlustry ana
shall ubmit .suchl FSyStern and methods to the Admninistrator for re-
view andl approval. After such systeml and mlet'hodr s have be~en
formlulalted and~ approvedc by the Administrantor, full etactils con-
cerning thlem shall be made available to all members.. Thlereafter
it is intended that all memnber~s should utilize the principles of such
system or methods.
(c) Enwl~crryoneyI (Lowestx Reasonable Cost).- hen ran emergncync
exslts, the C~ode AuthfloritY may cause an imnpartial agency to inves-
tigarte costs andt to determme the lowest reasonable cost of the product
affccted- by ther cllemergenc Suchn de~termina7tion shlall exclude all
cos elements set forth~ in andl shall be in all respects subject to such
rules andi regulations as may be issued by the Admiinistrator and
subject to his a~pproval or modification after such notice andl oppor-
tunity to be hea~rd as he ma y prescribe. The Code Authoritg or the
Admininstratr may, from time to time, cause such determinations
to be reviewed or r~econsidlered and appropriate action taken.
(d) Deyfnlit~ions.- Anr Emlergncy exists whenever the Adminis-
trator dletermiines that destruc-tive price cutting is rendering in-
effective or seriously endangering the maintenance of the provisions
of this Code.
(i) When no emergency exists, the terms shall have thle meaning
declared2 in rules andi regulartions prom"ulrgated by the Admninistrator
onl recommendation of the Code Authority or on his own motion;
(ii) Whencl anl emergen cyei~sts, the term shall meacn any sale in
violation of subsection (e) hereof;
(iii) It shllnl be anl absolute defense to any charge of destructive
price cutting~, if an impartial agency, designated or approved by thle
Admlinistrator, shall find,
(aa) That the price complained of is justified by existinga compe-
tition, evi(!enrce of which has been reported to th~e Code Authority
(bb) Thzat the price comlnplainled of is justified as a method al
disposal of dropped lines or seconds, or
(cc) W~hen no declared emergency exists, that the member charged
with destructive price cutting has in g~ood~ faith endeavored to
mak~e proper use of the announcedl cost estimating methods.
RULE 11. PUbl7ish~ed Prices.--Each member of the Industry shall
file with the Code Authority: on a date specified by ~the Codle Au-
thority, after reasonable notice, net price sheets, or price lists and
discount sheets, individually prepared by him, and all terms anrd
conditions of sale relatingf thereto. Such net: price sheets, or price
lists and discount sheets, and/or terms and conditions of sale~ shall
become effective immediately upon receipt by the Code Authaority.
Anly member of the Industry may file revisions of hiis net price
sheets, or price lists and discount sheets, and/or terms and condi-
tions of sale which shall become effective immediately upon their
receipt by the Code Ahuthority. No member of the Industry shall
sell or offer for sale anly product of the Industry at prices other than
those noted in the net price sheets, or price lists and discount sheets,
and/or on terms and conditions of .sale other than the terms and
conditions of sale last filed by such member with the Code Authoritly
in accordance w\;ith the provisions of this Article and in effect at
the time of such sale. All filed effect i ve price lists as provided in this
Rule shall be open to the ilspecrtion of buyers as well as sellers as
they may be concerned.
AJRT`ICLE V~III ExPRoT TRADE
SECTIONT 1. No provision o~f this Code relating to prices or terms
of sllig, hiping r mrkeing shall apply to export trade or sale
or shipments for export trade. "Epr rd hl edfnda
in the Export Trade ~Act adopted April 10, 1918.
AuRICLE IX ---MODIFICATION
SECTION 1~. Th~is Code and all thne provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the Atct, from time to
time to cancel or modify any order, approval, license, rule or regu-
lation issued under Title I of said Atct.
SECTION 2. Such of the provisions of this Code as are not required
to be included herein by the Act may, wcith the approval of the
Administrator, be modified or eliminated in such manner as may be
indicated by the needs of the public, by changes in circumstances,
or by experience. All the provisions of this Code, unless so modified
or eliminated, shall remain in effect until June 16, 1935.
ARTICLE ~X--RONOPOI;Es, ETC.
No provision of this Code shall be so applied ats to permit mnonop-
olies or monopolistic practices, or to eliminate oppress, or discrimi-
nate against small enterprises.
Armerr XI--PHIce INcRsEAs
Whereas thle policy of the Act. to increase real purchasing power
will be mnade morer difficult of consumimationi if prices of goodls and
services increase as rapidly as wages, it is recognized that price
increases except such as may be requ~ired to meet individual cost
should be delayed, and whern made such increases should, so far as
possible, be Ilimited to actual additional increases in the seller a costs.
ARTcICE XTI E=FFECTIVE DATE
This Code shall become. effective on the Tenth day after its ap-
prov-al by the Administrator.
Approved C~~de No. 440.
Regristry ;No. 33~0
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