Code of fair competition for the open paper drinking cup and round nesting paper food container industry as approved on ...


Material Information

Code of fair competition for the open paper drinking cup and round nesting paper food container industry as approved on March 26, 1934
Portion of title:
Open paper drinking cup and round nesting paper food container industry
Physical Description:
p. 567-579 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Paper products industry -- Law and legislation -- United States   ( lcsh )
Food containers -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 406-12."
General Note:
"Approved Code No. 370."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004952560
oclc - 63654649
System ID:

Full Text






I '__'
libr sale by the Superintendent of Documents, W'ashington, D.C. - Price 5 cenle

Approved Code No. 370

Registry No. 406--12




This publication is for sale by the Superintendent of Document~s, Covernment
Printing Office, Washington, DC., and by district, offices of the Bureau of
Foreign and Domestic Commerce.
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, M~ass.: 1801 Cust~omhouse.
Buffalo, N.Y'.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chiicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mlich.: 801 First National Bank Building.
Houston, 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: 4108 Federal Building.
Mlemphis, Tenns.: 229 Federal Building.
Mlinnieapolis, Mlinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, -Customuhouse.
New~ York, N.Y'.: 734 Custombouse.
Norfolk, VaR.: 406 East Plume Street..
Philadelphia, Pa.: 4122 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, M~o.: 506 Olive Street.
San Francisco, Calif.: 310) Customhouse.
Seattle, W'ash.: 809 Federal Office Building.

Approved Code No. 370



As Approved on March 26, 1934


An application having been dulyl made pui~rsnnt to and in full
compliance within t~he provisionis of T'itle I of th~e National Indtustria~l
Recovery Act, aLpproved June 10i, 1933, for approval of a Code of
Fair Comnpet~ition for the Open Paper Drinktingv Cup andt Roundlc
Nesting Pap~er Foodl Ciontainer Indlustry, andl heariigrs hiav~ing beeni
duly held2 thereon ande t~he annexed report on said Codle, containing
findings with respect thereto, having been mad-le anc d~ir~ec-tedl to thle
President :
NOW~, THEREFORE, on behalf olf the Presidernt of th~e Unitedi
States, I, Hugh S. Johnson, Adlministranto1 for~ Indcust~rial Reco,clvr,,
pursuant to authority rested in me by Execiutivee Orders~ of th~e
President, including 'Executiv.e Order N~o. 6543-A~. dated Dt~erember
30, 1933, andl otherwise; do hereby inlcorlpor~at by r~efe~enlce said
annexed report and2 do findl that Said~ Cod~e complies~ in all r~espects
with the petrtinent provisions and will p:romlote the p~olicy and pur'-
poses of said Title of said Act ; and dlo herebyr order that said C'ode
of Fair C~omipetition be and it is hereby app~rovedl; provided, how~-
ever, th~at the provisions of Article V'I, Sections to 9! inclusive,
insofar as th~ey prescribe a waiting period between t~he filing with th~e
Code Autfhority (i.e. actual receipt by the Code Auth~ority) and the
effective late of revisedl price lists or revised terms andl conditionsr
of sale be and they aire hereby stayed pending miy further ordter;
provided further, thaIt within ninety days I may direct. thaut there be
a further hearings on such of the provisions of said Code as I mnay
designate, annd that any order which I ma1y mak~e after suchl hearings
shall have the effect of a condition on the approval of this C7ode.
dminziis;trantor' forl Industrial Re~over;iy.
Approval recommended :
Division Admlinistrator.
WaBsmsECTow, D.C.,
Atarchi WI, 19134.
4913T'---425-162---34 (567)


Th~e W~hite Howae,
Sm: Tlhis is a report of the hearings on the Code of Fair Competi-
tion for the Open Paper Drinking Cup and Round Nesting Paper
Food Ciontainer Indlustry, conducted in Wrashington on November
10, 1933, in necordalnce with the provisions of Title I of the National
Industrial Recovery Act.

This: Code provides a 40 hour week for factory workers with a
weekly tolerance of eight hours to be paid for as overtimie, and
limited to 12 weeks per yeair. The usual exceptions are made in
r~egard to nonprodluctive employees. Office emnployees are limited to
an average of 40 h-ours per week over a four-week period.
The minimnumi wage rate for hourly paid emnployees is 404 per hour
for males and 339 per hour for females. Office emuployvees will receive
a miinimum w~age of $15.00j per w~eek.


An open price planl of selling is provided, and selling belowv cost,
except. to mneet competition, is prohibited.

Provision is made for furnishing the Adlministrator with such
statistical data as he may r~equire.


The Industry employed in 1930 approximately 2,500 persons and
in t~he first, six months of 1933 appr~oximattely 2,300 persons. In the
week of July 17, 1933 during the highest peak period in th~e year in
the Industry, 85% of t~he factory employees worked more than 40
hours per wveek. Thle effect of the C~ode will be to employ about 280
ndditional persons to manintain production under similar conditions.
The total increase in payr~olls as a result of the Code w~ill be
about 8%~.

The Dcpuity. Administrator in his final report to me on said Code
hiaving found as~ her~ein set fourth, and on the basis of all the pro-
ccedings9 in thiis ma~tter
I find that:


(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act., including
removal of obstructions to the free flow of inter~state and foreigni
conuinerce which tend to diminish the amount thereof and will p~ro-
vide for the general welfare by promoting thle organization of indus-
try for t~he purpose of cooper~ative action auongr thle trade groups,
by inducing and maintaining united action of Inbor and man3age-
mient under adequate governmlentall sanction andi supervision, by
eliminating unfair comlpetitive practices, by promoting the fullest
possible utilization of the present prodluctive capacity of industries,
by avoiding undue restriction of production (except as miay be temn-
porarily required), by increasing th1e consumption of industrial and
agricu~ltulral products through increasinga purchasingf power, by re-
ducing and relieving unemployment, by imlprovingr standards of
labor, andi by otherwise rehabilitating industryy.
(b) Said Industry normally employs not nor'e than 50,000 emn-
ployees and is not classified by mne as a major industry..
(c) The Code as approved compglies in all respects with the perti-
nent provisions of said T'itle of said Act, including without limnita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Sulbsection (b) of Section 10 thereof; andl that t~he applicant Asso-
ciation is an industrial Association trulyl representative of thle afore-
said Industry; and that said Association ifuposes no inequitable
restrictions on admission to membership ther~em.
(d) The Code is not designed to andi will niot permit mlonopolies
or monopolistic practices.
(e) The Code is not designed to and wTill not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approv-al of said
For these reasons this Code has been approved.
A dmn 2 istrator.
MARCH 26, 1934.


To effect~uate the policies of Title I of the National Industrial Rie-
covery Act, the followinga is hereby established as a. Code of Fair
Competition for the above named Industry and shall be binding
on every member thereof.

The followningr worrds are used in this Code with thep meaning herein
set forth:
Industry "--The manlufacturre of open paper drinking cups, and
round nesting paper containers: for t~he packing of food and other
Member "-A naturral person, partnlership, corporation, aissocia-
tion, trust, trus~itee, trustee in bankr~uptcy, receiver or other form of
enterprise, engngedl in such Industry.
";Act "--Title I of the National Industrial Recovery Act.
"Admninistrator "-The Administrator for Industrial Recovery
under Title I in t~he Act.


SECTION 1. There shall forthw~ith be constituted a Code Authority
of the Open Paper Drinking Cup and Round Nest~ing Paper Food
Container Indu~stry which shall consist of seven (7) members sie-
lectedl in the mnanner hiereinafter provided, together with such person
or persons as may be designated by the Administrator. The person
or persons so( designated shall serve without vote and without com-
pensantion from the Indlusctry.
ScECTION 2. The Execuitive Director of thle Cup and Containier In-
stituite, Incorporated, shall forthwith call an Industry meetings for
the purpose of electing the Induistry members of the Code Authority.
At least ten (10) days' w-ritten or telegraphic notice of such meeting
shall be given by him to each knownr members. A member may elect
t~o be present either in person or by piroxy and shall be entitled to one
vote for each candidate.
SECTION 3. The electlOn of thle members of the Code Authority
shall be conducted in accordance with the following procedure:
(a) The first member shall be elected from among the members
whose annual nlet sales, by dollar valuae, of thle products of the
Industry for the precedling year were $1,500,000 or more.
(b) Each succeedingq memnber shall be elected, one by one, in like
fashion froml among those members whose annual net sales, by dollar


value, of the products of the Industry for said year were respec-
tively :
(1) $1,000,000 or more
3) $750,000 or more
3) $8500,000 or more
4) $250,000 or more
(5) $100,000 or more
(6) $10,0j00 or more
(c) A majority~ of the votes east in any ballot shall be necessary
to elect a candidate.
SECTION 4. The Executive Director shall determine, upon the basis
of figures furnishedl to him by muembers and announce at said mleet-
ing, previous to nominations, thle remembers eligible for such nomii-
SECTION 5. Ainy mnembrci mayv nominate a cand~idlate for memb~er-
shiip on thme Code Auithiority' and n candidate elected in accordance
with the foregoingr shall serve for onie y'ear or until hiis suc~cessor is
duly' selected.
SECTION G. Tile COde Autllority by~ a mlajonitv YOte Of lis Illembe~r-
ship nit any regular or special meeting shall fill any vRalcancis that
mnay occur in its melmbershli p. The Adminisl~traat or may at any' timne
prescribe a dlifferent method for selecting the Indlustry mlemlers of
thle Code Authority, andi thereanfterl such mlemlbrrs shall1 be cho~seni
in the maonner so prescribed.
SECTION 'i. Tile Cup anId Containerl Institute, Inc., toigether withl
its facilities. shall be utilized by the Code Author~ity for enrrylingr
on its w~ork and activities p~ovidedl that nothing hereini shall r~elieve
the Cod-e Auithoriity of its duties or responsibilities under this Codle
and that sucih tl'rade~ :Isociatiorn shall at all timlesi e subject to andi
shall comply wTith the rovisions hecreof.
SECTION 8. The Codle Authlority is charged genlerallyr with the duty
of administer~ing th~is C'ode. If thle Admninistratorr shall determine
that any nation of thle Cod~e Author~ity, or any~ agency thereof, may
be unfair or unjust or contrary to the public interest, thie Adlmin-
istr~ator may require that suich action be suspended to afford an
opportunity for inv~estigation of the merits of such action andi further
considerntionn by the Code Aiuthorityt or agency~ pend-inig final action
which shall no't be effective unless the Administrator approves or
unless he shall fail to disapp~rove after thirty (30) day.s' notice to
him of intention to proceeds with~ such action in its original or
modified forml.
SECTION 9. The Ppellsesn of adlminister~ing this Code shall be borne
pro rata, jin accor~dance with a formula to be adopted by the Code
Authority, by all members of t~he Ind~ustryr who accept the benefit of
the services of the Code Authority or otherwise assent to thiis Cod~e.
SECTION 10. The Code Authority shall have power to investigate
alleged violations of this Code: and acts or courses of conduct by any
member wrhichi are or appear to be contrary to the police of the Aict
or which tend or may tend to render ineffective this C~ode and to
report the same with r~ecommnendlations to the Administrator.
SECTION 11. The Code Auithor~ity shall cooperate w~ith the Admiin-
istrator in regulating the use of any N. R. A. insignia solely by those
members of the Industry w~ho have assented to, andl are complying~
with, this Clode.


SECTION 12. The Code Authority may appoint a Trade Pralctice
Committee which shall meet writ~h t.he Trade Practice Committees
under su1ch1 other Cod-esi as mnay be related to this Industry for the
purpose of formulalting Fair Trtade Practices to govern t~he relation-
ships between production andc distribution employers under this Code
and under such others to the endl that such Fair Trade Practices may
be proposied to~ the Adm~lrinistrator as amendments to this Code and
suchl ot her Codes.

ARTICLE III-HoURs or L.\1onr

SECTION 1. Employees in the Industry shall not be required or
permitted to w~ork hours in excess of the limits prescribed in the
followinIg sched ule :

(a) Wa~tchmecn: Fifty-six (56) hours in any one week, but niot
more than six (6) days in any seven (7) day p~eriod.
(b) Chauff'eurs, tr~uckdrivers andl their helpers: One hundred
eighlty (18;0) h~ourls in any period of four (4) consecutive weeks,
provided, however, that time worked in excess of nine (9) hours in
any oner day or fortyr-five (45) hours in anyv one week shall be paid
for as niot less than time andc one-thiird.
(c) Engineer's. firemeni and electricians: One hundred sixty-eight
(168) hours in any per~iodl of four (41) consecutive weekrs, provided,
hiowev-er, that time worked in excess of nine (9) hours in any one day
or forty-fivle (45) hours in any one weekr shall be p~aid for as not less
than time and one-thir~d.
(d) All other laborers~, mechanical workers or artisans employed
in any! plant, mill or factory, or on work connectedl with the operation
of such plant, mnill or factory: E~ight (8) hours in any one day and
forty (40) hours in any' one week, provided. however, that these
mnaximnum limits mnay be: exceeded in any twelve (12) weeks of
each calendar !ear, pr~ovided, that all timne wrorked in excess of eight
(8) hours in any one any and forty (40) hours in any one week
shall be paid for as not less t~han time anld One-thir'd, anld provided,
further, that no employee shall be required or permitted to work
in excess of ten (10) hours in any~ one day or forty-eigaht (48)
hours in alny one w~teek.
(e) Emiployees regularly engaged in a maunagerial, executive or
supervisory capacityr receiving thirty-five ($35.00) dollars or more
p~er week, and outside salesmen: No limitation.
(f) All other employees: Forty-eight. (48) hours in anly one
week but not. to exceed one hundred and sixty (160) hours in any
period of four (4) consecutive weeks.
SECTION 2. NO emplOYe6 Of t~he clRSSeS Inhcluded under Sections 1
(b), 1 (c), 1 (d) and 1 (f) of this Article shall be required or
permitted to worked more than six (6) days in any period of seven
(7) consecutive days.
SECTION 3. hrO Ilmiitation contained in said schedule shall apply
to employees of any class wh~en engaged in emergency repairs or
nemergency maintenance work occasioned by breakrdowns or involv-


ing protection of life or property, pr'ovidedl, hlowvere, that all time
worked in excess of the limitations prescr~ibedl in snid schledulee
shiall be paid for as not less than t~imle andt one-third..
SECTION A- NO C1mp0yl've Shall pernilt Ally' emplloyee to w\or~k for
any time w~hich. wvhen totaled with that alreal v 'performedpt with
another employer or emlployers inl this In~dustryv. exceedls the mnaxi-
muim permitted herein.
-- SECTION 5. No female emnployee shall be r~equir~edl or permitted
to work between the hlourls of 10 P. Ri. andl 7i A. R1.


SECTION i. Tile Infimumiin rante of wage of any employee, other
than onfce or clerical emiployees, employed in any plant. mlill or
factory1 or on workr connected withi t~he o~peiration of any such
plant, mlill or' factry' shall be as follows:
Mlale, 40 cents per hlour
Female, 33 cents per hour
S~ECTION 2. The miniml-ull rate~ Of Wager f00 0000~ Ol' clefleSIl
employees shanll be rifteen ($15.00)c dollars per w~eek~. Part-time
employees coveredl by th~e provisionis of this SC~ection shall b~e paid at
the. rate of not less thalnl thirty-sevee n andl one-half (3714~) cents
per hlour.
E~CTION ;3. Th1is Article establishes a minimir umi rante of Pay whlich
shall apply irr~espective of whether an emnployee is actually comn-
p~ensated on time~ rate, piece workl or other bnsis.
SEC'TION 4-. TheP wagerr rates of all emp-loyees r~eceivring mlore than
the minimnumn rates herein prescribed shall b~e reviewedl and such
adjustments madce therein as ar~e equitab~le in the ligit, of all the
circumstances, b~ut ini no ease shall1 they be dlecreased.. 1Yithini sixtyv
(60) day~s after t~he effective date hecreof, the Clode Authority shrll
report to the Admninistrantor the action takren by nil members of the
Industry under this Section..
SECTION 5. Offce boys andl girls und-er eighteen (18) years of age,
to the extent. of no mnore thnn 5% of the total numbher of emiployees
descr~ib~ed in Section 2) her~eof, mauy be em~ployed at a wage of not less
than 80%~ of thle mninimumu prlescribed by said Section, pjrovided2 that
at lest one such~ offeet boy or SCECTION 6. Femarle emnployees perfor~miii substantially the hame
workr as male emplIloyeesls shall receilvee the samiie rante of pay as m~ale
SECTIrON 'i. A person whose erni~nig capacity is limited because of
age or physical or mental handcical ip may e emp~loyed on light work
at a wag~e of not less than 80%0 of the mniniunum pr1escribedl by this
Code, prIovided the State Aulthor~ity or other agency designated- by
the United States Depar~tmntn of Lalbor shall have issued a certificate
autho~izingr his emnploymeiint on such Iiasis. Each memiber shll fle
w\ith~ tlhe C~ode Author~ity a list of all uchcl perso"ns employee' d by! h~im.
ARTICLE ?~- ENE RALt L.\nOn PnIvisioKs

SECTION i. NO person uinder sixteenl (16) years of ag~e shall be
emnployed in the Indcustry. N esnudregte 1)yaso
age shall be emnployed at operations or occupations wh~licht are


hazardouis in nature or dangerous to health. The Code Authority
shall sutbmit to the Administrator within sixtyv (60) days after the
effective date of this Code a list of such operations or occupations.
In any State an emplloyeer shall be deemed to have complied with this
provision as to age if he shall have on file a certificate or permit duly
signed by the authority in such State emnpowered to issue employment
or age certifientes or permits, showing that. the employee is of the
reqluiredt age.
S~EcTION 2. EmIploy'ees shall have the right to organize and bargain
collectively thlroulgh representatives of their owri choosing, and shall
be free fronm thle interference, restraint, or coercion of employers of
labor. or their agents, in the designation of such representatives or in
sel f-or~a nizat~ion or i n other concerted activities for the pu rpose of
collective burgainingp or other mutual aid or protection. No em-
ployee andl no one seeking emnploymlent shall b~e required as a, condi-
tion of emp~loyment to join any company union or to refrain from
joining. orgcanizingF, or assistinga a labor organization of his own choos-
ing. Employers shall comply with the manximumn hours of labor,
mninimumi rates of pay, and others conditions of employment, approved
or presc~ribed by the President.
SECTION 3. No pr~ovision in this Code shall supersede any State
or Federal law which imp~oses on employers more stringent, require-
ments as to age of employees, wa~ges, hours of wrork, or as to safety,
health, sanitary or general working conditions or insurance or fir~e
protection, thnn are imposed by this Code.
SI~Cnow~ 4. No emnployer shall r~eclassify employees or duties of
occupations p~erformnedl or engage in any other subterfuge for the
puinrpos of de~feating the purposes or provisions of the Act or of
this Code.
SECTION 5. All employer's shall p~ost copies of Articless III, IV
and V' of thiis Code in conspicuous places accessible to employees.
SECTION 6. Every: employer shall make reasonable provisions for
the safety andl health of his employees at t~he place and during the
hours of their employment. ~Standalrds for safety and health shall
be submitted by the Code Authiority to the Administrator wFithin six
(6) months after the effective date of this Code.
SECTION T. The Code Authorit~y shall make a study of conditions
in thie Industry to determine the f~easibilityv of the adoption of a
shorter working weeke and shall, within three (3) months after the
effective date of this Code, make a report of its findings to th~e
Adm i inist rator. The Code Authorityv shall also submit to the Ad-
ministrator wvit~hin six (6) months after the effective date of this
Code, a plan for the stabilization and regrdlarization of employment.
SECTION 8. The manufacture or partial manufacture of any product
of the Industry in homes shall be prohibited.

SECTION 1. The Code Authority shall, as soon as practicable, cause
to be formulated an accounting system a~nd methods of cost finding
and /or estimating capable of use by all members of the Industry.
After such system and methods have been formulated and approved
2 See paragraph 2 of order approvingr this Code.


byF the Administrator, full details concerningup themn shall b~e mnade
available to al~l mlembers. Thereafter all mr-embers sh~all determine
and/or estimate costs in accordance withl thle principles of such~
SECflON ~2. The Code Auithor~ity Imay fr~om timne to timie dletermiiine
that an open price plan of sellinga such product or products of
the Indunstry as it shall specify shall be put into effect on such date
as it shall fix. Notice o~f such determiiination shall be announced to
all known members of the Induitry) who manufacturer such products
not less than thir~ty (30) days prior to the: date so fixed.
SECTION 3. At least tenl (10) days prior to such late, every such
member shall file with the Code A~utho~ityl a schedule of prices and
terms of sale for all such products or, in the alter~nativet, shall be
deemed to hav~e filed n1 schedule conformingn in respect to price and
terms of sale writhi the schedule nt any time on file which states the
lowest price aInd the mo(st. favorable ter~ms.
SECTION 41. All sruch schedules shall be in suchi form as the Code
Authority shall pr1escribe and shall contain all information necessary
to pelrmi~t any intere~stedl person to dletermninle the exact, net. p~~rie
per unit after all discounts, b~rokierage fees, price differentials or
other considlerations granted for services rendered in wFar~ehocusiingn or
distributing such products, or other deductions have beeiin made,
whether pertaining to a single order, a commnitment for future
delivery, or a contract. All such~ original schied-ules shall b~ecomie
effectiv-e on the dlate fixedl by the Clode Aluthoriti y as provided in
Section 2L her~eof.
SEcTION 5. Anl or~iginal schedule, a revised schlcuedle or schedules,
or a new schedule or schedlules, or a notice of withdrawal of a
schedule previously tiled, may be filed by a member with the Code
Authority at any time, provided however, that any member wlho
wit~hdrawfs a schedule without substituting a new schedule thlerefor
shall be deemed to have filed a schedule conforming in respect to
price andi terms of sale with the schedule: at, any timne thereafter on~
file which states thle low~est price and the most favorable terms.
Any schedule or notice filed~ hereunder, shall become effective five
(5) days after the dlate of filing, providled, hlowever, that an in-
creased price ma~y become effective at such earlier date asY theI
member filing thie samie shall fix.
SECTION 6. The COde Authority shall promlptlyy supply all miem-
bers of the Industry who mlanufactulre any pa"rticular product w~ithi
copies of all sch~edules, revisedf schedules, andl notices of withdrawal1,
which pertain to such product. Immiedliately upon receipt of infor-
mnation relative to the withdrawal of a price for any product, any
member may file notice of withdrawal of his own price for the samie
product effective as of the same date as the notice of withdrawal of
such other member. Iimmediately on receipt of information that a
schedule then on file has been revised, or that a new schedule hias
been Sled, any mnemiber miay file a revisedl schedule conformling as
to price and terms to the schedule of such other mlember, and detective
on the samie late, or he mnyv notify the Code Authrority that he
adopts as his own the schedule of such others member. In the latter
event, he shall be deemed to have filed a revised schedule conforming
to the revised schedule of such other member.


SECTION 7. No suIch schedule of prices and terms of sale filed by
anly miemibr. or in effect at any time, shall be such as to permit the
sale of any product at less that, the cost thereof to such member
determlinedi in the mlanner provided in Section 11 hereof, provided,
however, that any mnember may by notice to the Code Authority,
adopt as hlis own a lower price filed by another designated member.
Such adoption shall become automatically void upon the withdrawal
or revision upward of thle price adopted.
SECTION 8. No member, whlo shall have filed a price or adopted as
his owsn a price filed by another member for any product, of the
Industry, shall sell such product for less than such price or upon
terms or condcitionis more favorable than stated in such price sched-
ule. No miemb~er, who shall hav~e failed to file a price for any
product for wThich the openi price plan is in effect., shall sell such
p'rodluct at a lower price or on sterns more favorable than the lowest
price and mos.ct favorable terms stated in anly price schedule for such
product then on file.
SECTION i). The Codle Atuthority shall furnish at cost to anly inter-
estedl person, w~hether members or non-miem~ber requesting them,
copies of any13 price .SchedluleS which ha\ve been filed with it. Such
pr'icet schedules shall be made available to non-mnembers at the same
timle that thley are sent to members.
SECTIOIN 10). No m~emlber shall sell any product of the Industry for
which no open price plan is inl effect at less than t~he cost. thereof to
suich~ member, dletermiined as provided in Section 11 hereof, except
to meet the price of a com1petitor whose price does not violate such
S~ECTION 11. Cost., for thle purposes of this Article, shall be deter-
mnined pursuant to the method of necounting and costing prescribed
as provide~d in Section 1 hereof as soon as such method is adopted and
alpproved, andi th~eretofore pursuant to the mnethodl employed by such
member subject to such preliminary rules as the C'ode Authority
shall from time to time prescribe with the approval of the
A dm in ist r'ator.
SECTION 12. Every member shall upon the request of tihe Code
Authority~ furniish a designated agency of the Codle Authority in
respect to closed transactions only, wiith complete information in
regardl to any quotation, order, contracts, or sale of any product of
the Indullstry, incluirngr information as to specifications, quantities,
price, conditions of storage, transportation or delivery, terms of
billing, ensh or trade discounts allowed and other pertinent facts
relating to such quotation, orders, contract or sale.
SECTION 13. Every member filing a schedule or notice hereunder
shall deliver to the Code Authority with~out expense such number
of copies thereof as shall be necessary to enable the Code Authority
to supply one copy thereof to each member of the Industry and no
such schedule or notice shall be deemed to have been filed until such
number of copies shall have been received by the Code Authority.
SECTION 14. Nothingr herein contained shall be construed to pre-
vent the disposition obf distress merchandise required to be sold to
liquidate a defunct or insolvent business or of discontinued lines,
damaged goods or seconds, in such manner, at such price and on


such terms and conditions as a member shanll publish with the Codes
Authority, prior to the sale thereof.
SECTION 15. Nothing hereini contained shall be constr~ued to p~re-
vent the fulfillment of a bona fidle contract existing on the eiffctive
date of thlis Code.
SECTION 16. NOthing~ her~ein conltaniedI shall be congruedle~ to p~ermiit
discrimination betwreenl like pur11chase rs for like quantities.
SECTION 17. The Code Aulthlority may, at any' time, sulspenl th~e
open price p~lanl of selling either in its entirety or in so far as it ap-
plies to any sp~ecified product or p~roduicts of the Indlustr'y.

SECTION 1. EachI member shanll pirepare and file wYith an imipor~tial
agent. desiglnatedl by the Code Authority at such times and in such
manner as it may? prlescrib~e, suich stattistics, data and informatnlioni
relating to plani capacity, volumne of produlctionl, volume of sales in
units and dollars, orders received, unfilled or~ders, stocks on hand,
inventory both raw~ andr flinihed,, number of employees, wagfe r'ate,
employee earnings, hours of work andlr other matters, as the Co~de
Authority or th~e Adz.ministrator may! from timie to, time require.
SEC'TIO~N 2. ExcepIt as5 othlerwise prlov~id~ed in the Act, or in this
Code, all statistics, dalta And information filed or requlired in accord-
ance wTithl the prov\isionls of tliS C'ode shall be confidential and the
statistics, data and informantioni of onie membe-! r shanll not be revealed
to another miemnbr. No~ such dlata or~ information shall be p~ublisjhed
except in combination with mother similar data anld in such a manner
as to avoid thc- dlisclosur~e o~f conifidential information ion. The Code
Authority shallI ar'range in su~ch marnner as it m~ay determine for the
current publicationi of Indcustry! statistics to mlemblers.
SECTION :3. Th~e C'ode A~uthor~ity shall makle such repor~ts to the
Administrator as hie mayv froml timne to timie i'reuire.
SECTION 4. In adrlit.100 tO informntlon required to be submitted to
the Code Authority there shall bie furnished to Govel'rnment. Agencies
such statistical information us the Admninistrator miay deem ne~cessary
for the purposes recited inl Section 3 (a) of the Act. Nothing con-
taine~d in th~is Code ihall retlieve any member of any existing obligau-
tions to furnish reports to any G;overnment Agerncy.
AnRrrICL VIII-MaxorVO o uvs

STEc'TION 1. No, p~rO\'ISIn Of ti.Es Code shall be so applied as to
permiit mionop~olies or monopolistic practices, or to chmmiiate, oppr~ess,
or discriminate against small eniter~prises.

SECTION 1. T'he Code Authority may, fr~om time to timle, present
to the Administrator recommnenda:tions based on conditions in the
Industry whlich will tend to effectuat~e the operation of this Code and
the policy of th~e Act, andl~ ini particular along~ th~e following lines:
(a) For the establishment of additional rules of fair trade prac-
tice for the Indlustry and for the codification of its trade utos, and
the enforcement ther~eof.


(b) For the establishment of plans to equalize production wpith
demand, so that the interests of the Industry and the public may be
properly, serv~ed.
(c) Fo elng: withl any other inequality that may arise to
endangoer the stability of the Industry and of production and employ-
(d) For an increas-e or decrease in the number of Industry members
of the Code Author~ity and;'or for a change in the method of choosipg
suchi members.
SECTION t2. Reconuinendations made pursuant to Section 1 hereof
when approved by thle Admninistr~ator after such notice and hearing as
he shall prescribe, shall have the same force and effect as other
provisions of this Code.

SEcnowN 1. Thle following are hereby constituted Trade Practices
for the Industry and failure to comply with the provisions thereof
shall be a violation of this Code.
(a) lifemnbers of the Inldustry shall not, practice deception in re-
ganrd to t~hat w~hichl is; sold or its selling price by false or misleading
description, statement, record, or undisclosed consideration.
(b) M~embers shall r~efrainl fromt dumping, deferred delivery, ex-
tension of stately credit and secret r~ebates.
(c) Mem~bers shall not wilfully injurre by falsely dlefaming a
comipetitor's goodls, credlit, or ability to perform his contracts.
(dl) Memibers shall not wTilfully induce or attempt to induce the
breach of a completitor`s contract.
(e) o mmbershal gve, permiit to be given, or directly offer to
gie, aonything of vle for t~he purpose of influencing or rewarding
the action of any employee, agent. or representative of another in re-
lation to the business of the employer of such employee, the princi-
pal of such agent or the represented party, wvithiout the knowledge
of such employer, principal or party. The foregoing provisions shall
not be construed to prohlibit free and general distribution of articles
commonnlyl used for advertising except so far as such articles are
actually used for commercial bribery as herein defined.
(f) No mecmber of the Industry shall ship goods on consignment,
except under cir~cumstannces to be defined by the Code Authority where
peculiar circumlstances of the Industry require the practice.

SECTION 1. If any member is also a member of another industry,
the provisions of this Code shall apply to and affect only that part of
his business which is included in this Industry.
SECTION 2. Any work or process t.o andX carried on by a
member at his plant as a part of the manufacture of any product of
the Industry, shall be regarded as a part of this Industry.
SECTION 3. Such of the provisions of this Code as are not re-
quired to be included therein by the Act, may, with the approval
of the Administrator, be modified and eliminated as changes in
circumstances or experience may indicate.

SECTION 4. This Code and all th~e provisions thereof are expressly
miade subject to the right of the Pre~sidecnt, in accordlance writhi the
provisions of Section 10 (:b) of the A~ct, fr~omi timie to timne to enncel
or mzodify any order, appr~oval, license, r~ule or regulation, issued
under Title I of saidl Act, and sprcifically,, but. without limnitation,
to the right of the President to enllcel or miodify~ his approval of
this Crode or any- conditions imposed by~ him upon his approv-al
SECTION 5. This Code shall biecomie detective on the second 1\Ion-
day after thle date upon which~ it shall b~e approved by the President
of the United States.F
A~pprov'ed Code N'o. 370O.
Regisrtry3 No. 406i-12.



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