For eme by the Superintendent of Documents. WashingtonD.C. - Prices cents
Code No. 270
Registry No. 325---41
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
WOOD HEEL INDUSTRY
AS APPROVED ON FEBRUARY 9, 1934
WE DD OUR PARt
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superintendent of Documents, Government
Printing O~ffice, Wmashington, D.C., and by district offices of the Bureau of Foreign
and Domestic Co~mmerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Custombouse.
Buffalo, N.`Y.: Chamber of Commerce Building.
Charlestonl, S.C.: Chamlber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamlber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 F~irst National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indlianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fila.: Chamber of Commerce Building.
K~ansas City, Mo.: 1028 Baltimnore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tennt.: 229 Federal Building.
~Minneapolis, M~inn.: 213 Federal Building.
New Orleans, La.: Room 225i-A, Customhouse.
New Yorkz, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 E~ast Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Seattle, Wash.: 809 F~~redeal Office Building.
Approved Code No. 270
CODE OF F'AI[R COMPETITION
W~OOD HEE~L ]INDUSTRY
As Approved onr February 9, 19341
A-rr~nortso CODE OFT FA-IRI COMPTIETITION liOR THE: TOOD HEEL
An application having been duly made~t purlsuantl to and in full
compliance wPith t~he provisions of T'itle I: of the National Industrial
Recovery Act, appr~oved June 16j, 1933, for appr~oval of a Code of
]Fair Competitionr for the Wood HE-eel Indcustr~y anl hlearings hav-
ing been. duly held ther~eon andl the annexed Irepor~t onl said Code,
containing findlings w~ithl respecct thereto, having been made and
dir~ectedl to th~e Pire~sident:
NOW, THEREF;ORiE on behalllf of thle Precsidernt of th~e United~
States, I", Hugh S. Johnson. Admrinist~tcrtr for Indu~lst rial Recov~ery,
purlsuant to aulthorit~y vested in mne byEeuveO eroftePei
dent, including g Executivee Oi~lrdser No.iv Or343-A, da D ieember 30
1033,L'r an thrIs do hlereb :inrcorpDorate by reference. said an
nexedc report and do find thaut saidl Code complies in all resp~ec~ts with
theo p~erment prov-isionls and will promote the pIolicy anld ~urp~oses
of said T1Citle of saidi Act; and do here~by border that said C~ode o~f
Flair Comipetition be and it is thereby approved; provided, however,
thiat the pr~ovisio~ns of Article VII, section 2 insofnr1 as t~hey pre-
scribe a wa~itingy periodl betw-een the filing with the Codec A~uthority
andl the detective dante of revisedl price lists or revisedl termis and conn-
dlit~ions ofi sale be and~ they ar~e hereby stayed~ pendin my furrther
border neither within a period of sixtYty (6) day's from the effective~r
date of this Codle or after thie comnpleton of a study of open price
assiociations~ now- being conducted, by the Natlonal RecoveryS
Adlm inist r~t ion.
HoonG~J S. Jon.SUson
Admiistato fo InustialRecovuery.
Aproa I~""' recolmmended:
DSiviLsin A~dmnc~ist rator.
Felbruar~y 9, 1934.
30350 "---- 37~-40---34
R1EIPOIRTC TO THE PRESIDENT
Th7e White House.
SIR : This is a report on the Code of Fiair Competition for th~e
W~ood Heel I~ndustry in the Unitedi States, the hearing being con-
d~ucted in Wtiashington, D.C., on December 6, 1933, in neccor~dance
with the provisions of the National Industrial Recovery Act.
PROVISIONS ONT HOURS AND WAGES
The mlaxinnun hours provided in this Code for employees is forty
(40 hors er eekandeigt 8) hours per day. W~hen. produe-
tiondemndsit toerace f fve (5) hours per w~eeki is allowed
for not more than eight (8) weeks in each six (6) months' period,
with one and one third the normal hourly wag:~e for all hours worked
in excess of eight (8) hours per day.
Employees classified as set over men, firemen, janitors, shipping
clerks, and delivery drivers are: permitted a tolerance of ten (10) per-
cent of the normal hours of work. Watchmen are penu'liftted to work:
fifty-six (56i) hours per week. IEmlployees engaged in emergency
m~ininenaCllr le or' repair work and/or in continuous processes upon
whrlich the employment of other employees depends are not limited
but shall be paid one and one third the normall~l rate for all hours
workedtil in excess of forty-five (45) hours per weekr.
The minimum ung;~e specified for male employees is thirty-seven
aznd one half (371/2) cents per hour in anly city over 25?0,000 popula-
tion and thirty-five (35) cents per hour in aIny city or place of
250,00)0 or less and that specified for female employees is thirty-two
and one half (321/3) cents per hour.
L~ea1rners not to exceed five (5) percent of thle emnployeesc~ and for
not mrlrre than four weeks, may be paidi not less than eighty (80) per-
cent of the prescribed minimlum. No w-ages of those paid in excess
of the mninimumu of this Code shall be reducedl below those paid for a
normarl week prior to June 16, 1933. Neither shall such. wages be
reduced due to a shorter normal week pr1escr~ibedl by this Code but
shall be equitably adjusted and reported within. thirty (30) days of
the approval of this Code.
The mrrininuanll agre provided~c in this Code is 16i years but in hazard-
ous occupations this age limit is inllcrased to 18 yaS.C~'~
ECUNUM10,II( L.FEC'T OF THE CODE
The volumtle of the oult pult of this industry increas~ed about twenty
(20) percent fromt 1928 to 1939~ and during the same period the
dollar vFalue decreased about thirty-fiv (35i) percent dule to the
cheapecr grlad~e of shoes servirced during thle depress(~4ionl \.ears. and) to
the extremlle prilce cutting whvlich~ was~ genera;IY lly practi(Ce1 and whlich
resulted in a loss to prlac~ticanlly all memberl~~lS of the industry. Thle
hours p~rov\idedt in thiis Codle ivill inlcrease.- the empiloymenti- ini thiis
inutlry~l\ chiicfly in the nonunlllionl sectionlls approxhaui ll~teily fteen (la)
pe~rcnt. The ar' I1e thle sameI11 masimum hourl~ piovi inius undercI whlichl
the inldustryl hasb bee'n operlat in underI11'1 the Pit4lr idet` s Reempllloymelnt
Agreement,~ll and ;are mlore libern~il thlan those~ effective mn un~ionizedl
terlritor~y. This indulstryS is highly secasona~l in nature, andl due to the
fact. tha~t it serv\ices the shoe ilndustryr, this is largely u ncont rcl;llble.
Thec prov-isions for maximumiii hours~ must ther forl~'u' e be amewhat\.ln in-
fluncedc~ by; thle likeC pro'is\iionls in thle Shloe Indul~lstry3.
The minimu m ~ag~e p~rovisionls wi'll not grcatly increase thef pulr-
haigpower of the employees in, this industry, thoughrr~f witl equital-
ble adjustment--- of wage rates above theC minionun1111 us~ provide theirjl
purchase' ~ ing power shold(ll be restored ner;lyl to the! 1929 level necordcll-
ing to the studyS repor'ted by the Division of Economicr Resen11ch alnd
Planning.L~ ~Here ag~ain thet approv\ed wage pr1ovisions of thle Shoe-lr
Industry mus~rlt be~ recognized~ as an impor-ltalnt flc~tor to be considered.l1
Due to price cutting in this indu~stry~ there has been a high rate of
mortality among its memlbers., To reduce thiis rate of mortality dur-
ingi the~ lemergenicy periodl theF Code provides th~t. thne cost of lumbecr
shall beC figurledl at the muinimu m~ pr~ices estab'ilised p~~ursnnt to the
C'odec of F~air Compettition for the L~umbe~r and~ Timber Prodc~t~t~s
Indcustr~ies in calculating costs belowr which thep plrodulcts mayno b
sold. This proviisionr is inltendetd to prevet the~ further bankI;;rup' nt ey
of. the industry due to large lumbrnli stocks; of distress mc~crchanldise
h~eldl by a fiew of the I;1~lare wocod hee~l mcanu~flleturercls and due1t to the
fact thant a few\ memllbers of thlis indutry~l~) produce their own ]ulumbcr
for ma~kinr ~woodr heels. Without thtis p~roVisionl, a priceC wa~r would11~
continued wirich would have no soCia~l valueC.
Thze final Irevisioi-n of this C~odc, as of Janual~ry 4, 1984-, which ha~s
th~e app'rov"l of echcr of thle Advisoryt Bofidc s andl Functional Divi-
iwns of the Natio-nal Recovery Adminristration h1 las nlot been tllrans-
mitted beforet this time due to inequritablle prvc~isions which existedl
in the C'onstitution aIndl BylawnFs of thle Natiolnal A-ssociation of' Woodl
Heel Mannu~falc~tul~res. 'The snid7 Constitution arol( Bvlawts hafve nlow
been amendedlr so as to coirrec-t these inequitable pr~lov.isiols.
T~he As~sist~ant 1Deputy Admlrinistrato~r in his final reprlrlt to mne onl
said Codec hav~in~ fou~ndl a herein set fo-r~th~ and onr thei ba:sis o~f all the
I find~ that:
(a1) Said Codle is w\ell des~igrne to prom~~ote the po~licies and1( p)ur-
poses~ of Title~ I of tie ~Nt~ional Indlustrial 1Recovery Act, including
remiovnl of obstlructionns to thep free flow\ of interstate anld foreignl
commerce whiichi -tendr to rlimlinish thie amounlllt there~of u11lnd ill p~ro-
videc for the genri!al weclfar~e by p~romioting thie organiiizatioln of in-
dustry~ for the purpose of coop~erative actiolln among~ the tr~adle jiroupls,
by inducingr and mrainltaiining united actionl of lablor andl mnagementill
under adequate g~overnnenltal sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible:
utilization of the pre~sent produc~tive capa~city of industries, by a~void-
ing undue restriction of produlctionl (except as may be temporarily
required), by increasing the consinuptiotn of industrial and agricul-
tural products through~ increas-ing purchasing power, by redu~cing
and relieving unnemploymentlt by improving standards of labor, andi
by otherwFPise rehiabilitating industry.
(b) Said industry norma1:lly employs not more than 50,000 em-
ployee~s; and is not clescifiedl by me as a major industry.
(c) The Code as aIpproved complies in all respects with the p~er-
tinent provisions of said Title of said A~ct, including: without limlita-
tion. Sublsection (a) of ScC'.tionl 3, Subsection (a) of Section 7, and
SuLbsection (b) of Section 10) thereof ; and that the applicant associa~-
tion is an industrial association truly representative of the aforesaid
industry ; and that said association imposes no inequitable restric-
tions on adminlionr.l to membership therein.
(di) The Codle is not designed to and wiill not permit monopolies
or monopolistic praictices.
(e) The Code Is not designed to and will not eliminate or oppress
small enlterplrises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprivedl of the right to be heard prior to approval of
For these r, uns,l: therefore, this Code has beenl approved.
HUsu S. JoINSson,
FEBRTRUAR Q, 1934.
COD)E OF ]FAIR COMIPET~TrOITIO FOR THIE OO1D HEIIEL
To effect the po~lic~ies of Title I of th~e Nationall Indlustrial Reccovery
AL~ct thlis Code1 is estab~lishedT as a Code~ of Fair Compel~ttiton for the
Woodl HE-el Ind~ustr~y, and shall be thle standrd~lr of fair compel:,tition
for su~chl indu rtry3 and sh1all be b~indting~ upon every Inembeltr thereoccf.
S(?ISe nox TI0 1. Wood Hel dstry. -Thre terml "' Wood(,( Hee-l Inldus-
try as ulsedl herein inl~~cludes the turning, finlishfin~, and/lor sale of
wood- herels b~y the manulfacturerI and wh.1 reilatedc~ branches or sub-
dliv-isions there~tof as may fromll time to timle be inluded~rr~ under the
p~rovisions of this Cocle by\ the Prefsidecnt after such nlotice andt hear-
ing as he mayn prescrib~e, but exsc.ludesc the finishing~ of wRood heels by
1Boot and Sholce manulfal~~itcturer who finiish th~emr exclusively for theic~r
own use in thle mlanufactur e of foor:twearnl.
S~EC. 2. 2 e')lrt of Use Industr,ly.-Theh term memberI~~I of thle In-
dustry inhlesll~~, but wcpithout limitation, any1 inlliv-ilful, partner-
ship, assc~iatio n, coror ractio~n, or o~ther personal englagedrl in the in-
dustry, elitherl as an employers~~ or on his or its own behlalf.
SEc. 3. Employe70/!r'.-Thle term. employerr as usedll he~1reinl nwansl
any emplloyeri engagedd in the ind.ustry.
SEC. 4. Employ~~E e.- The ter "employee ~" as usedh herein in-
cludes3 an andt all persons engagedl in th'e industry, hownever~i (o1-
penantedl, exScept a, members(~( of th~e Industr~y.
S~EC. :j. ,.l(f. HNrlT ;i cJI)I Diafrf~ldo.--Tle terlRS "-c~t, RDR an L-llli S i-
trator as used~~ here~cin shall mean, respectively, 'Title I of thle Na-
tiona uI nllust Iiril Rc~overy'3 Alct, a nd the Adm I i n istra~tor, for Industrial
SEC'. (j. Turner,.-T. he term '"turner" as usedl here1in shall mecan
thlo~t nl membl(l'c Of thle indus~tl ry wo turn w\oodlc hteels out of lumber
but who maiy n1,?o finli~ h them.
SEc'. 7. Findrell~~. --The terml finliher "" as ulsedl here~in shall mann
fthose membIICISers f the industry who~1 c~ompllete the finishing~r of wnoodl
heecls buit w~ho do not turn themr.
Soc'. 8 .j As-sciation~.-Th~e termn "'Association as used herein shall
menlC ther Naioinal Ass~ciat~ion of Wood Heel Manull~lfacturer's.
SECIO 1 Athinkn fors- OpIPC)'loye shall b~e pecrmittedl to
w-orki in exscess~ of forty (4C)) hours in anyr one week or eighlt (8)
hours in any twent-four (241) hour per~iodl, except as herleinafter
SEc. 2. Em~ecutiv~c andc SupI, rrixory Em~ployees.--The maximum
hours prescribed in Sect~ion 1 of this ~Artile lud~1 noot apply to
executive or supervisory employees receiving t~hirty-five (35) dollars
or more in anly one wieekr, nor to outside salesm-en, provided, however,
such executive or supervisory emlployees; or outside i-alesnwln employed
in. excess of forty (4)hours --hall p~erform11 only th-e normal duties
of such positions and shall not performn thle duties normally per-
formed by other employees.
SEc3. 3. Wate7unen Ii,.--The I1Sinn xllin n hours prescribed in Section 1
of this Article shall not apply to wa~tchmelln, provided~t howevercll, that
wantchinent~r shall not be pl'rmlitted~ to wTorkr in exce~~ of fifty-sixi (56)
hours in any one week.
SEC. 4. S86 OzUCT 1887>, Ftircnltenz Janitora, Sh~ippingy Clerkls a~nd
D11;7elivey Drilvers.--Set over mnen, fil'~lreme, janitors, shilp~inlg c~lerks,
and dlelivery3 drivers, shall be permnittedl to woorki a tolerance of not
mlore than five (5) hours over and above the normal hours of work
prescribed in Section 1 of this Article; and a tolerance of not more
thzan six (6) hours over and above the said hours of worki during
the peaki seasons provided in Section 6 of this ArBticle.
SIwc. 5. Em'7lergencies.--The I1I1inn xionu hours of labor shall not ap-
ply to emnployestt doing mrgec maI(~II~' Ililltenlanc~e, and emnergrency7 re-
pai r work, or wor'k whviere restrictions of hours of workers on con-
tinuous provec~~t~ .ns ouldl unavoidably reduce production or inter-
rupt emlployment~ll of thle majority employees, but in any such
causes, at least t~ime andi one thirdc shall be: paid for hours worked
in excess of eight (8) hours in any one day or forty-five (45) hours
$W:(. 6. Peakr ~Secas~ons.--The mnaximum hours prescr~ib~e d in Sec-
tionl 1 of this: ALrtictle shasll not apply urllngv seasonal or peakz peri-
odls, but such period Llhall not exceed eight (8) weeks~li in anly six (6)
months perriod, provided, however, that no employee enlgagedl in
suchl- seasonal operations shall be permittedl to w-ork in exc~e~s of
forty-five (45) hours in. any one week. All hours wor~ked in excess
of eight (8) hours in any one day sh~all be paid. for at one and one
third times thl-e regular hourly rate.
SEc. 7. Dual: Em2ploym2en~t.- No emplloyer shall knowingly en-
gage~ any employee for any time which, whenl totaled with that
already performed wmith another employer or employer~ls in this
inldustry, exceed~ls the maximum hours prescribed in this Article.
SEI'TIONI 1. AibinilZU) ulit -ges.--RPO malle employee of this industry
shall be paid less t~hant the rate of thirtly-seven and one half (371/,)
cents per hour in any city over 250,000 population nor less than the
rate of thirty-five (35) cents peer hour in anly city or place of
250,000 population or less and no female employee in this industry
shall be paid less than. thirty-two and one half (321/~2) cents per
hour except as -tatedl in (a) and (b).
(a) All learner1s may be allowed a four-weeks' apprenticeship
during which time the rate of pay shall not be less than eigh~ty (80)
p'er~cetl~ of the minimum pretscr~ibedl in this Article. Such appren-
tices cengagedc. by anly employer at any one time shall not exceed()
percent~ t of his factory employees.
(b) Emnployers and employees maLY mlake' naltulllly .sli~atifaor'y
wage agreemlents covering thet cllovremployet of ther intfimsu pariitially
disabled, or physically handcicappled, if suchl empiloyee-~ do noat coni-
stitute more~ than five (5) per~cetll of" the totaH1l1lI)'. num r of employees~C
engaged by any emlployver at. anS onet timne anil are lnM paid t 1~~ less th
eighty (80d) pe~cenlt of theB mimu wag etalished~ by t~hiS Code.
Al such case shall be repo~rted iinunediately to, thet Codett Authrc~lity.
SlEC. a. rage 11lfdj/~irclkt,'I.-? IIO enIII loyer('I shall I-edife 110'( ftr 't~E Of:
compensation n for a nlormal weeck for t~he f~ourl wee~ks endl~ing June
16, 1933, of employeesP receiv-ing inl exce -, of thie IininlianIn \\ ages
yprs~cribed in this Article nlotwiths~tandliin tha;t. thet hours1. o' thle
normal ~week for such employees may be herleby redul~ed. Not later
than th~irt (30) day~s after the apipovl~u of this Code any1\ 11ncinhers1'
of the TIndustry whlo hav\e not hieretofore made equitable adljustmets
of pay3 schecdules in excesjs of thle mlinlimum11 under the~ Pr~e-~i(dent'
R~eemp1 loymlentt Ag~reement.l -,ha tll make elu i table':llj ustmlents of all
payv schedletis.. Such adljustmentls shal be reporltedtl to the Code~t
Authority andc the Admllinis L;tentor for' approval.
SEC. 3. jF;'ina.7d I, /1/jl i.tpl fr.N.- 1le empllloee rfmn ub
stanltially thre samle w\orkl as malt upoee hl receiive the arnle
rate ofSC Ilayf~3 as mlale employees.
Sr(c. 4.P r Work? andl~~~l;, M Ininin W~agl.--This A~rtic-le cstabli les
a minimum rate of pay13 which shanll apply, ilrrespcctive of wheltther
alltn emploee, is actually compensated;frl on a. timie-rate, p~i('r-ework,'i or
any othler basis.
A-RTH'I`I.EI V-GESNI:AL LABOR PRO1, IlaIOS~
SECTION 1. Chil Labor ProhTibi;t ed.-No penrllson' uNo er .ixteen
(16) ylenrs of age shall be em~ploy3ed in theInut.Nopro
under eighlteen (18) yecarsc of age shall be employed aIt~ op~~ertionsl or
occupations w~luch' are hazar~dous inl nature or dangerlous~ to healclth.
The Code Auithority shiall submiit to the Admiinistrantor before Feb-
ruary 28, 1934, a .list of such, operations or occulptions. In aniy
State an employer shall be deemed to have complied w~ithi this pro-
vision as to age if he shall have on file a cerrtificate or perm~lit dully
issued by the Authiority in such State empilowereid to issue emiploy-
ment or age certificates or permits show,~\ing thant th~e riployee Is
of the required age.
SEC. 2. Emnployees' Right t~o Olcrgani~z.-In compl~liance~ withn See-
t~ion 7 (]a) of the ALct it is provided:
(a) Thiat employees shall have thie right. to or~ganize and harga1nin
collectively th rou h r~epresentativ-es of their ow-n choosingl, andshal
be free from the interference, restraint, or coercion of emp~loyers of
labor, or their agents, in the designation of such r~epr~esenttativs or
in self-organization or mn other' concerted~ activities for. thle purpo a11
of collective bargaining or other mutual aid or protec~tionl.
(b) That no employee andl no one seeking employmniit shall be
required, as a condition of employment, to jomn any' c~omny~i~ union
or to reframn from joinmug, organizing, or assisting a labor orgaruzau-
tion of his owfn choosing.
(c) That employers shall comiply with the max~imumll hours' of
labor, minimum rate of pay, and other condlitions of emlploymntnt
approved or prescribed by the President of the United States.
SEC. 3. PeO G88ify/ing Employees.--No employer shall reclassify
employees or duties of occupations performed or engage m any other
subterfuge for the purpose of dlef eating thne labor provisions of the?
Act or of this Code.
SEC. 4. ~iOnW TROrk Prohi~bitc-d.--All work connected with every
operation of the W~ood Heel Industry shall be performed in the
factories of the employers. No such work whatever shall be per-
mitted to be taken to the home of the employees.
SEc. 5. Safety and Health.--Every employer shall provide for the
safety and health of his employees at the place and during the hours
of their employment. Standards for safety and health shall be sub-
mittedl by the Code Authority to the Admninistrator within three (3)
months after the effective date of this Code.
SEC. 6. State Lates Prevail Where More Stringient Than Gode.--
NZo provisions in this Code shall supersede any State or Federal lawFc
whrkich imposes more stringent requirements on employers as to age
of employees, wages, hours of work, or as to safety, health, sanitary
or general working conditions, or insurance, or fire protection, than
are imposed b~y this Code.
SEC. 7. POst~ing Code.--All employers shall post complete copies
of this Code in conspicuous places accessible to employees.
AtRTICLE VI--EN FOCIIEMIE
SECTION 1. Code Aucthori'ty.--The Code Authority wRhich. is hereby
constituted the agency for administering, in coopera~tio~n with the
Administrator, the provisions of this Code, shall consist of the
Executive Committee of the Asso~ciation7 elected as hereinafter pro-
vided, and one nonmember of the association. TPhe _Association or
any other trade or industrial association participating in thne selection
or activities of the Code Authority .shall: (1) impose no inequitable
restrictions on membership, and (2) submit to the Administrator true
copies of its articles of Association, By-Laws, Rtegrulations, and any
amendments when made thereto, together with such other informa-
tion as to membership, organization, and activities as the Adminis-
trator may deem necessary to effect th6 purposes of the Act.
SEC. 2. _2HO? COm poii~s?.-T'lhe Code Authority shall consist of
thirtee~n (13) members, to be elected as herein provided. The exec-
utive committee of the Aissociation shall constitute twelve (12) mem-
bers of thle Code Authority and shall be elected as follows: nine (9)
members shall represent turners, three (3) of whom shall be elected
by the turners in each geographiedl~a area; three (3) members shall
represent finishers and shall be elected by finishers, one (1) from the
Western area and two (2) from the New Engrlanld and Easterln areas.
Tlhe thirteecnth (13th) member of the Code Aluthority shall be elected
by and from the members of the industry wvho are not mnemlbers. of
the Association. The Geogrophi11l~call Areas herein referred to shall'
be (1) the Ne.w Eingtland Area rconsis~tingr of the States of Maine,
New H-amnpshire, Vermonlt, Mas.;sachusettst~~ and Rhode Island; (2)
the Eastern A~rea consisting of th~e States of Connecticut, New Yorkr,
NewT Jerse3, ]Penlnsylvania, and Maryland; and (3) the Western
Area consiisting~ of all other states not included in the foregoing
area and territories subject to this Code. ~Not more: than three non-
noting members may be op~pointedl by thle Athnini.tt raitor to se~rve' onC
the C'ode Arth~oritly w-ithorut expese'to~ thne Irninstry' forll such terms
as thle border of npoikln my eignarte. In the c\cent of resligl-
nationl or iniability3 to serve on h ato n eetduebro
the C'ode Aulthority slc~h vacancy3 shlall bet filled; by! the ;'l'l-ol''.into
members of th indulstry of th geographall~h~u areasi in whlichl the
vacancyl occurred. No two member o~f the( C'odet A\thloritv hal;l he
representatives of or finaniaillly int er~ested in the .-ninelc firmn, (.,ojr pora-
tion, company, r s~ubuidiaries of thec .--anne firmlll, Icorpornt.;licm. Or
company w-hich is engng~ledl in~ flus nolulstry.
SEC. 3. PcOu'er~s nit Dutte.& of Qotll .I ur~rofl;y.--Th~e <'Ie .Aljlilorl-
itSy shall admiinister the provision" of thle 'cod,~l secure adlc~~herece
thiereto, consider proposals for amn enl~l~utlls thereittc, hea~r comprla~inlts.
and otherwise carry out the purpo ze- of the Naltiona~l I~ulustrrial
Recovery Act as se fourth in, the Cohde, subjec~t to ther approval of the
Administrator andl to hiis right (,n rev\iew\ to dli upp~rove any .ur'tionl
of the Code Authiority.
SEC. 4., Reprl)O 8.--A designated agent of (110 Code .Allarll~ty may~\
obtain from mlember~s of the indlustrya such informatlioni)l andI( reptsL(lt
as ar required for the adm~ini?;tractionr of the Codel~. No, individual
re orts shall be disclosed to any. other member1~1 of the induslltry3 eSCept.
itn summanry and except to the Adtministrator~l or suc~h G1ov~erlnemntal
agencies as he mlay designate.Ina itotoifr to -nie
to be submitted to the Code Authlority, nIemllbers~ of thel indullflSt sha~ll
furnish suich statistical information a'; the Admiiirinistao maLD' ly deem'lI
necessary for the purposes r~ec:ited, in Sc~tionl 3 (a) of the ~c~t, to
such Fedlerl~ and State agencies as thc AdTministratorol may des~ignatl:
no provision of this code shall relieve any1\ mlember~ of thre indusllt ryl) of
any existing obligation to furnlishl reporiits to Governmentc l agenlcies..
SEC. 5. Meber of Crode Author.ity NCOt Pa/rtner~rr.--Noth fing~L ('n-
tained in this Codle shall constitute the mem'llber-~ of thle Codle Author~l-
ity partners for any purpose. Nor shall any Inlember~s of the Cod~e
Authority be liable ini any manner to anyone for an noct of anyl other
member, officer, agentf, or employee of the Code Auth~orit?. Nor1 shall
a member of the Code Authlority~S who is e~xercisingr rreasonablle dili-
gence in the conduct of his duties hlellreunde~r be liatble~ to anyocne forl
any action or omssion to act under the Code, except fo rhis ownn
wilful misfeasance or nonfe~asance.
SEC.. 6. COde AuthTor~ity MutiU~ Be He-pre sr tairrle.-',~ I n cn'lt'I- t~i
the Code Authorityr shall t all times be~ truly rep~lre entative of thle
Industry and in other respects comply w~ith the provisions of the Acct.
the Administrator may provide such hiearings as he may~\ deemI
proper; and thereafter if he shall find that the C'ode Anithiority is nort
truly representative or does not in others respects compl)ly writh thle
provisions of the Act, may require an aprpit o tetini h
method of selection of the Cod~e Auho~riaty, Ior n .u-C
SEc. 7. '.Cp~enses of CodeP A uthIocky.--Eac lch member of the~ Indu~s-
try- participating mn and shlaring the benefits of thle ac~tivities of the
Code Authority and/or participating in the selectionl of t.he mlember~s
thereof, shall pay its reasonable share of the expenses of it:, admini~s-
tration. Such reasonable share of thle expenses of aminlillslttiratio
shall be determined by the Code Authorit~y, subject to review- by thle
Administrator, on the basis of volume of business and such other
factors as may be deemed equitable.
AnTorm VII--FAIR PRICE COMPETITION
SECTION 1. Unziformn Actcounting Syst~em.--The Code Authority
shall formulate or cause to be formulated a uniform accounting
system which shall be adaptable to the cost accounting procedure
and to the business of the industry. Such plan shall specify the
factors which shall be included in determining th~e allowable costs
of each member of the industry, provided, however, that the allow-
able costs of lumber used in the malnufac~ture of wood heels shall
not be less than the minimum price of the specific krind and grade of
lumber, as fixed pursuant to the Code of Fair Competition of the
Lumber and Timber Products Industries. The cost of lumber in
stock prior to such prices becoming effective shall be included at not
less than thne minimum price of the appropriate kind and grade of
lumber as fixed pursuant to the Code of Fair Competition of the
Lumber and Timber Products Industries at the time such prices
became effective or at the time such lumber is used, whichever is
lower. The cost of lumber acquriredl'' by members of the Industry
after such p>rics are in effect shall be included at not less than the
minimum price so fixed at thne time such lumber is sto-ck~ed or pur-
chased, or at the time it is used, whichever is lower. Upon approval
by the Admlinistrator of such a system of cost accounting for the
Industry complete advice concerning it shall be distributed by the
Code Authority to all members of the Industry. Within thirty (30)
days after each member of the Industry has received notice of the
system of cost accounting so approved no member of the Industry
shall initiate a selling price for any product of the Industry below
his own allowable costs, or sell thne products of the Industry at such
pricecs, or upon such. terms or conditions of sale as will result in the
purchaser's paying for such product less than thEe allowable cost
thereof to the seller, deter~mined~ in accordance wCith the aforemen-
tioned system of cost accounting, except to meet the com~petitionl of
another member of the Industry, provided that notice of such. price
to meet the competition shall be sent to the Code Authority and pro-
vided that such comnpetitve price may be used only until such time as
the Code Aiuth~ority determnines~ after investigationo, and notifies
such member that sales below his allow~sable costs are no longer
necessary to meet competition.
SEc. 2. Open pri'l.c's.--With~in twenty (90) days after' the above
cost accounting system has been approved by the Administrator, each
member of the Industry shall file with the Code Authority and pub-
lishr to interested parties a price list individually prepared by him
for all products of the industry sold or offered for sale by him, to-
gether w~ith the discount, if any, allowed therefrom, and fixed terms
of payment. Revised price lists or revised discounts or terms and
conditions of sale may be filed from time to time thereafter by any
member of the Industry provided, however, that such revision shall
be filed with the Code Authority five (5) day5s in advance of the
effective date thereof, and providecd further that any member of the
Industry may file revisions of his price lists, or terms, or conditions
of sale o mneet r~evisions~ previon ly filed by other'1 rIC'nembers wh'ic'b be-
comei effective onl the samell date onr whlich'I(I neh rvisedl pr~ice list- or
revised terms~ or cond~itionsi of ialer of oithc~r membersI~ hlall blcomnee
effective. NoT mlemberrr of thle industry .shall1 -ell or offrv for .-alle a~ny
products of the Induistrya rcslwrta h rcsntdi i
price list or onr mior~e favopriab slle twnsand conditions of sale~tli tha
the terms anl rcondlitin,ll o-f sale previously tiledr by such mem~llberI
witl the Codie Authorit~y in ne~coi~~icrdac with thie foregol~ng prov"\isionsl s
and in, eff~c~t at the( time~ of wh1'1 sale.l
AscrifL 11 -NArIN TRA.\l,-: VRACT"CIES
Thie followning a1nil be conslicter~ed unlfairl trade practices adc inl
violations of this~ Codre:
RrLE i. ('&87 disC'r untrS.--The graningfil Of ally3 cash dliscounllt in
exce~ss of five~ IperCent for PLIlpaymenS receivedl on or before the twen-
tiethl iany of the mionith fo~llow\ingdate of sh~ipmen~t' or theF tra~ntinglc of
any rnsl dlisccount whlateverli for paymllents Irrecivedt after thec tw-entieth
of thie monthfl folL\lown Ju:te of shlipmentl~. This c~lause~ hall11 becomiie
opeirat ie on cr the first 11ay! of the monthlfl follow\-i ng the ()fftect iv dCatde of
RULE f?. ,10OJ.< O/r flracl, ar~rel pharlr.-A~, cc'l'lhl ce Of INOWt~ OFl Trad~c~
Acc~eptancest l in paymencrt for melrchantlise.;c withoutl initeirest or beaiirin
interest at the~ ra~te olf le~ss t~han the applrox~imatett legal Irate of i~terlest.
REULE '). .17rmri!Iv1t;.u 01'r c //,7;.--The? p-fullting' of allo\\lnces~ Or
credits for Jamagesr in xCeSI~. of the -valuet of rcitherlr blockzs or~ finishedcr
beels, :Irespcl.tively,? suppllited to fin~ishingr phanit~s or .-We( InanufneI;IC-
than is ac~tua~lly ?(hiPp~ed either as a mpa~ns of gri\.ing~ hidden (li'counlt
fi~rom invoice prtice tl. or to untic.ipalte chlinls forl clningedt~l or defective
RU:LE 6. SPC,'t.'' Hebates.--The granltinlg of ~eeret~ rebate<, dliscoun~rts,
or allowa\nlces of any~ kind~.
IiRLE 6. Mit-branitlUl~l.-The II mi sbrandlcing of heels or t he wrcilful
le~c'lptionl of any cus1tomer as to th~e kind, grade, orI quality of heel
ber of the indlustry shall give, permit to bet givenl, or dlirec~tly offers to
give. anlytling~ of valul e for. thel purposeI of inflRuecIingF or Irewardlingp
the action of any employee, agent, or represecllnta\tiv of anolitherl in
rreltion to thle business of the employer of such empllloyee,. ther priln-
cipal of .sulch agenlt or the repr~esented p~arty, without thle know\\led~e
of such employer,. principal, or p~arty., Commlercial bribery provi-
sions shlall not b~e cons~truedl to pro~hibit. free: and g~ieneral dlistribution
of ar~tic~les conuinonly usedl for advertising except so far as such
ar~tic~les are actually u~sed for co~nunler~cial bribery as hereinabove
RUL'E 8. Shlipplingi of Goods Grml ConsYigrunentlf .-The~ bhipp~ingb of
goods on consigrnment exceplt on such terms anid conditions as may be
prescr~ibedl by the Codle Auithority.
See paragraph 2 of order approving Lble Code.
ARTICLE IX--APPROVAL OF TH-E ]PRESIDENT~
This Code and all the provisions thereof are expressly made subject
to the right of the President, in accordance with the provisions of
Clause 10 (b) of the National Industrial Reco~very Act, from timne
to time to cancel or modify any order, approval, license, rule, or
regulation, issued under Title I of said Act, and specifically but with-
out limitations to the right of the President to cancel or modify his
approval of this Code or any conditions imposed by him upon his
ARTICLE X-REVIISIONS ANUD ADDITIONS
SIECTION 1_. A[~lodfjl'lt 1071.--Such of the provisions of this Code as
are not required. to be included therein by the National Industrial
Recovery Act, may, with the approval of the Administrator, be modi-
fied or eliminated as ch a nes in c~i rcunslllt anIces or experience may indi-
cate. It is contemplated that from time to time supplementary pro-
visions to this Code, or additional Codes, will be submitted for
approval of the President, to prevent unfair competition in price
and other unfair and destructive compe~titie. practices and to effect
the other purposes and policies of Title I of the National Industrial
Recovery Act consistent with thle provisions hereof.
SIEc. 2. Procedure~!i'C for~ Mod~ificatiorZ.-Supplementary provisions or
modifications of this Code before beings recommended to the Admin-
.istrator by the Code Authlority, shall be adopted at a regular or
special meeting of the Code Authority by a two-thirds affirmative
vote of members of thne Code Authority either present in person or
by proxy. Prior to any such meeting of the Code Authority to con-
sider supplementary provisions or modifications at least fifteen (15)
days written notice shall be given to all members of the industry
which notice shall specify the purpose for which such meeting of the
Code Authority is called` and the supplementary provisions or
modifications to be considered.
ARTICLE XI nMONOPOIJ~ES
No provisions of this Code shall be so applied as to permit moc-nop-
olies or monopolistic practices, or to eliminate, oppress, or discriminate
against small enterprises.
ARTICLE, XII--EFiECTIVE DATE
This Code shall become effective on the first Monday after its
approval byr the President.
Approved Code No. 270.
Registry No. 325i-01.
UNIVERSITY1111 OF1111111 F111111111111 LOIDA