Code of fair competition for the waterproof paper industry as approved on February 17, 1934


Material Information

Code of fair competition for the waterproof paper industry as approved on February 17, 1934
Portion of title:
Waterproof paper industry
Physical Description:
p. 163-174 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Paper coatings   ( lcsh )
Waterproofing   ( lcsh )
Paper industry -- Law and legislation -- 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. 406-11."
General Note:
"Approved Code No. 295."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004952552
oclc - 63654646
System ID:

Full Text



For sale by the Superintendent of Doculments. Washington, D.C. Price 5 rents

Approved Code No. 295

Registry No. 400--11







This publication is for sale byv the Suiperintendenit of Documents, Government
Printing Office, Washingtonl, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
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Seattle, Wash.: 809 Federal Office Building.

Approved Code No. 295



As Approved on February 17, 1934


iAn application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recoveryv Act, approved June 16, 1933, for approval of a, Code of
Fair Competition for the W\aterproof Paper Industry, and hearings
having been duly held thereon and the annexed report on said Code,
contamiing findings with respect thereto, having been made and
directed to the President:
NOW, THEIREFORE, on behalf of the President of the 'United
States, I, Hfugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority v-est~ed in me by ExecutivFe Orders of the
President, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find that said ~Code complies in all respects with the
pertinent provisions and will promote the policy and purposes of said
Title of said Act; and do hereby order that said Code of F~air Competi-
tion be and it is hereby approved; provided, hzowlever, that the pro-
visions of Article! VI, Sections 2 to 9 inclusive, in so far as they pre-
scribe a waiting period between the filing with the Code Authority
(i.e. actual receipt by the Code Authority) and the effective date of
revised price lists or revised terms and conditions of sale be and they
are hereby stayed pending my fui~ther order; provided further, that
wKithin ninety days I may direct that there be -a further hearing on
such of the provisions of said Code as I may designate, and that any
order which I maay make after such hearing shall have the effect of a
condition on the approval of said Code.
Ad m in istirator for Industrial .Re~covery.
Approval recommended:
Divisilo n Admzi nist rator.
February 17, 1934.




The Wht House.
SIa: Thi is a report of the hearing on the Code of Fair Competition
for the Waterproof Paper Industry, conducted in Was~hington on
October 20, 1933, in accordance with the provisions of Title I of the
National Induistrial Recovery Act.

Thi Code provides a standard 40 hour week for factory workers
with a wveekly tolerace of eight hours to be paid for as overtime.
The ulsual exKceptions are made in regard to non-productive employees.
Office, employees are limited to an average of 40 hours per week over
an eight week period.
The minimum wo~age rate in t~he North for houlrly paid employees is
400 per hour for males and 35q per hour for fema~les. In the South
the minimum wage rate for hourly paid employees is 350 per hour
for males and 304 per hour for females. Office employees will receive
a minimum wage of $16.00 per week in the North and $14.00 per
week in, the South.

An open price plan of selling is provided, and selling below cost,
except to meet competition, is prohibited.

Provision is made for furnishings; the Administrator with such
statistical data as he may require.

The Indulstry employed in 1929 approximately 650 persons and in
July, 1933 approximately 450 persons, in a total of 28 plants, who
worked an average of 46 hours per week. The effect of the Code will
be to employ about 100 additional persons.
Because of the percentage of male and female workers receiving less
than the. wage rates of 404 and 354 per hour the total increase mn
payrolls as a result of the Code will be about 17%~.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth, and on the basis of all the proceedings
in this matter;
I find that:
(a) Said Code is well designed to promote the policies and purposes
of Title I of the Naftional Industrial Recovery Act, including removal


of obstructions to tlhe free flow of interstate and foreign conmmrce
whch tend to diminish the amount thereof and will provide for the
general welfare by promoting the organization of ~industry for the
purpose of cooperative action among the traded groups, by inducing
and maintaining united action of labor and management under ade-
quate governmental sanctions and supervision, by eliminating unfair
com~petitive practices, by promoting the fulle~st possible utilization of
the present productive capacity of industries, by avoiding undue re~-
strition of production (except as may be temporarily- required), by
increasing t~he, consumption of industrial1 and agricultural produlctsr
through increasing purchasing power, by reducing and relie-ving un-
employment, by improving stalndards of labor, a~nd by otherwise
rehabdlitatmng industry.
(b) Said Industry normallly employs not more than 50,000 employ-
ees; and is not classified by mue as a major industry.
(c) The Code as approved complies in all respects withn the perti-
nent provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection
(b) of Section 10 thereof; and that the applicant association is an in-
dustrial association truly representative of the aforesaid industry;
and that said association, imposes no inequitable restrictions on ad-
mission to membership therein.
(d) The Code is not designed to and will not permt moonopolies or
monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been depried of the right to be? heard prior to approval of said Code.
For these reasons this Code has been approved.
FEBRUARY 17, 1934.

To effectuate the policies of Title I of the National Industrial
'Recovery Act, th following is hereby established as a Code of Fair
Competition for the above named Industry and shall be binding on
every member thereof.
The followiing words are used in this Code with the meaning herein
set forth:
'"Industry. "-The manufacture of the following waterproof paper
prod uc t.s:
(a) Paper and paper board combined, saturated or coated with
bitumlinous material.
(b) Combinations of paper or paperboard with cotton or burlap,
or other methods of reinforcement, combined, saturated or coated
with bitumlinouss material.
(c) Crinkiled or creped papers, either waterproofed or unwater-
pr~oofed, except creped tissue, paper towels, and paper creped on a
paper machine. But not to include roll roofing and not to include any
creped papers or textile reinforced papers sold by the manufacturer of
such mlaterinal in the formi of fabricated baglike articles such as covers,
liners or bags, as distinguished fromt sheets or rolls.
J"Member."--A natural person, partnership, corporation, associa-
tion, trust., trustee, trustee in bankruptcyv, receiver, or other form of
enterprise, engaged in such Industry.
"A~ct."-Tit~le I of the National Industrial Recovery Act.
" in istrator."''-T he Admlinistra~tor for Indust~rial Recovery
under Title. I in the Act.

SECTION 1. The members of the Executive Committee of the
Waterproof Paper Mainufacturers Association, together with such
others person or persons as t~he Admlinistrator may designate, are
hereby constituted the Code Authority7 of the I[ndustry. The mlem-
bers of the Code Authority designated by the Administrator shall
have no vote. and shall serve without compensation from the Industry.
SECTIONV 2. The said Association shall impose no inequitable
restrictions on membership and shall Sile with the Admirust~rator
certified copies of any amendments of its By-Laws, relating to eligibil-
ity: or admission to membership in said Association, or relating to the
method of selection of the members of such Executive Conunittee
which said Association miay hereafter adopt.
SECTION 3. The Administ~rator may at any time prescribe a differ-
ent method for selecting the Industry members of the Code Authorityv,


and thereafter suchr members shall be chosen in the manner so pre-
SECTION 4. Thle Code Authority is charged generally ihtedt
of administeringr this Code. If thze Adm~inistrat~or shldtrme
that any action of the Code Auth~orityr, or any agency thereof, mayr
be unfair or unjust or contrary to the public interest, the Admlin~iSt~ra-
tor may require that such action be suspended to afford an opp~or-
tunityg for mnvest.igration of t~he merits of such action and further
consideration by the Code Aut~hority or agency pending final action
which shall not be effective unless the Adnuinist.rator approves or
unless he shall fail to disapprove after thirty (30) days notice to hnim
of intention to proceed with such action in its original or modified
SECTION 5. The ex-penses of administe~ring this Code shall be borne
pro rata, in accordance with a formula, to be adopted by the Code
Authority, by all members of the Industry who accept the benefit
of the services of thie Code Authority or otherwise assent to this Code.
SECTION 6. The Code Authority shall hnave power to investigate
alleged violations of this Code and acts or courses of conduct by any
mem~nber which are or appear to be contrary to the policy of the Act
or which tend or mnay tend to render ineffective this Code and to
report th same with. recommendations to the Administrator.
SECTION 7. The Code Authority is hereby constituted the agency
to endeavor to effect, by arbitral proceedings or otherwise, adj~ust-
mnents of contracts entered into by members of the Industry, where
the costs of executing such contracts are increased through the
application of thne provisions of the Act or of this Code.
SECTION 1. Employees in the Industry shall not be required or
permitted to work hours ini excess of the liits prescribed in the fol-
lowinga schedules:

(a) WCtatchmrran.-F~iifty-six (56) hours inl any one week, but not
more than six (6) days in. any seven (7) day period. Or fifty-sixe
(56) hours inn any one weekr, but not more than eight (8) hours in any
one day.
(b) Chaufeurls, tr~uckdrilver, andE their hepiiers.--One hundred eighty
(180) hours in any period of four (4) consecutive weeks, provided,
however, that time w~orkied in excess of nine (9) hours in ny one day
or forty-five (45) hours in any one week shall be paid for as not less
thn time, and one-third.
(c) En~ineers,Ji~ frernn, electricians, fiter plant)i employees, electric a1nd
hiydro-electr ic operatlors.--One hundred and sixrty-eight (168) hours in
any period of four (4) consecutive weeks, provided, however, that
time worked in, ex;cess of nine (9) hours inl anyT one day or fortyg-five
(45) bour~s in an- one wreeki shall be paid for as not less than time and
(d) Alil other lab~orers~, mchaniT cal workers or ar~;tisans employed in any
plant, mill or factory or on work connected writh the opecration of such
plant, mill or farcory.--Eight (8) ours in any onle dlay and forty (40)
hours in any one week, provided, however, that these mnaximuml


limits may be exceeded for any reason at any time provided that all
time! worked in excess of t~he maximums prescribed shall be paid for as
not. less than time and one-third, and provided, further, that no em-
pfloye e shal be required or permitted to work in excess of ten (10)
hours in any one day or forty-eight (48) hours in any one week.
(e) Employees regularly engaged in a managerial or executive ca~pacity
anzd their personal secretaries, foremen and espervi'sors, receiving
thirty-frec ($85.00) dollars or more per week, and outside salesmen.--
N'o hmantat.ion.
(-F) All othe1r employees .--Forty-eigh t (48) hours in any one week
but not, to exceed three hundred twentyT (320) ours in any period
of eight (8) consecutive weeks.
SECTION 2. NO limitation contained in said schedule shall apply
to employIees of any class when engaged in emergency repairs or
emergency maintenance work occasioned by breakdowns or involving
protection of lif~e or property, provided, however, that all time worked
in excess of t~he limitations prescribed in said schedule shall be paid
for as not less than time and one-third.
SECTION 3. NO eniployer shall knowingly permit any employee to
work for any time which, when totaled w-it~h that already performed
with another employer or employers in this Industry, exceeds the
maximum permitted heremn.


SECTION 1. The minimum rate of wage of any laborer, mechanical
workers or artisan employed in any plant, mlill, or factory or on work
connected with t~he operation of any such plant, mnill or factory shall
be as follows:
(a) I~n the Northern zone, which shall consist of all of the territory
of the U~nited States except the St~at~es named in subdivision (b) hereof,
Miale labor, 40 cents per hour
Female labor, 35 cents per hour
(b) In t~he Sout~hern zone, which shall consist of the States of Vir-
gmina, Tennessee, North Carolina, South Carolina, Georgia, Florida,
Alabama, Illississippi, Louisiana, Arkansas and Texas.
Male labor, 35 cents per hour
Female labor, 30 cents per hour
SECTION 2. The mlinimlum rates of wages for all other employees
shall be as follows:
(a) In t~he N\orthern zone, as defined in Se~ct.ion I hereof, $16.00 per
w~eek .
(b) In the Southern zone, as defined in said Section, $14.00 per
week .
(c) Part-time employees covered by t~he provisions of this Section
shall be paid at the ra te of not less than 400 per hour in the North and
354 per hour in the South.
SECTION 3. This Article establishes a, minimum rate of pay which
shall apply irrespective of whether an employee is actually compen-
sated on time-rate, piece-work, or other basis.
SECTION 4. Female employees performing substantially the same
w\orki as male employees, shall receive the same rate of pay as male


tive date of thi Code file with the Administrator a description of all,
occupations in the Industry in whiuc~h both men and women are
SECTION. 5. The wage rates of all emlployees receiving more than
the minimum rates herein prescribed shall be rev-iewed and such
adjustments, if any, made therein as arec equitaible in. the light of all
the circumstances, and within sixrty (60) days after the effective date
hereof, the Code Authorityg shall1 report to the Admlinisstrator the
action taken by all members of the! Industry under thuis section.
employees. The Code Alt~hority shall within 90 days after the effec-
SECTION 6. Office boys arnd girls under 18 y~ear~s of age, to the
extent of no more than 5%0 of the total number of employ-ees de-
scr~ibed in Section 2 hereof mlay be employed at a -a~ge of not less
than 80%l of the mlinimnum prescribed by said Section, provided
that at least, one such, office boy or gir rnay. be employed by each
SECTION 7. A person whose earning capacity is limited because of
age or physical or mental handicap mlay be employed on light w\orki
at a wage of not less than. 80% of the minimrumn prescribed by this
Code provided the State Aut~horit~y or other agency designated by
the Unit~ed St~a~tes Depatrtmlent of Labor shall hlave issued a certifi-
case authorizing h3is employment on such basis. Each member shall
file with the Code Authority a list of all such persons employed byT
him. The provision of this Section requrig a certificate of authority
shall not become effectiv-e until sixty days after the effective date
of this Code.


SECTION 1. No person under sixteen (16) years of age~ shall be em-
ployed in the. IndustryS. Nuo person under eighteen. (18) y-ears of age
shall be employed at opera tions or occupations which are hazardous
in nature or dangerous to health. The Code Authorityt shiall submit
t~o the Admlinistrator within sixty (60) days after the effective date of
this Code a list of such operations or occupations. In any State an
employer shall' be deemed to have complied with this provision as to
age if he shall have on file a certificate or permiit duly signed by the
alt~horityr in suchr emlpowered to issue employment or age cer-
tijficalten or permits, showing that the employee: is of the required age.
SECTION t2. Employees shall hasve the right to organize and bargain
collectively through representatives of their own choosing, and shall.
be free from the interference, restraint, or coercion of employers of
labor, or their age~nt~s, in the designation of such represenltativ-es or in
self-organizat~ion or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection. No employee
and no one seeking employment shall be required as a condition of
emplnoymnt t~o nom any compnyn uinion or to rrefram from inomxag
organizing, or assisting a, labor organization of his ownm choosing.
Employers shall comply with th3e maximum hours of labor, minimuma
rates of pay, and other conditions of employment, approved or pre-
scribed by the President.
SECTION 3. NVo provision in this Code shall supersede an State or
Federal law which imposes on employers more stemngent, requirements
as to age of employees, wages, hour of wrork, or as to safety, health,


sanitary or general working conditions or insurance or fire protection,
tha ar imposed by thlis Code.
SECTION 4. _No emplooyer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge for the
puros of de eating th purposes or provisions of the Act or of this
SECTION 5. Al employers shall post copies of Articles III, IV, and
V of ths Code in conspicuous places accessible to employees.
SECTION 6. Evrey employer shall make reasonable provisions for
the afetyv and health of his employees at the place and during the
hours of their employ ment. Standards for safety and health shall
be submitted by the Code Authority to the Administrator within
six (6) months after the effective date of this Code.
SECTION 7. The Code Aut~hority shall make a study of conditions
in~ the Industr to determline the feasibility of the adoption of a
shorter working wreek and shall, within three (3) months after the
effective date of thi Code, make a report of its findings to the Ad-
mlinistrator. TIhe Code Authority shall also submit to the Adminis-
trat~or within six (6) months after the effective date of this Code, a
plan for the stabilization and regularization 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:
formulate a standard method of accounting and costmg for the
Industry and submit the same to the Admlinistrator. Any such
method shall provide means for determining t~he price at which
paper shall be charged to t~he converting division of a combined
paper manufacturing and converting plant. WOhen such method
shall have been approved by the Admninistrator, every member shall
use an account tinga and costin system which conforms to the principles
of, and is at least as detailed and complete as, such standard method.
SECTION 2. The Code Authority may from time to time determine
that an, open price planl of selling such product or products of the
Industry as it shall specify shall be put into effect on such date as it
shall fix. Notice of such determination shall be announced to all
known members of the Industry who manufacture such products not
less than 30 days prior to the date so fixed.
SECTION 3. At least t~en days prior to such date, every such member
shall file with thie Code Authority a schedule of prices and terms of
sale for all such products or, in the alternative, shall be deemed to
h~ave filedt a schedule conforming in respect to price and terms of sale
with t'he schedule at an time on file which states the lowest price and
thec most ~favoralble sterns.
SECTION 4. All suIch schedules shall be in such form as thle Code
Authority shall prescribe and shall contain all information necessary
to permit any intecrest.ed. person to determine thle exact. not price per
unit after al diiscoun ts or other deductions hlave been made, whether
pertaining to a single order, a commitment for future delivery, or a
contract. All suchi original schedules shall become effective on the
date fix-ed by the Code Authority as provided in Section 2 hereof.


SECTION 5. A revised schedule or schedules, or a new- schedule! or
schedules, or a notice of withdrawal of a schedule: previoulslyv filed,
may be filed by- a member with, the Code Authority at any time,
provided, however, that any member who withdraws a schedule
without substituting a new schedule therefor shall be deemelcd to have
filed a schedule conforming in respect to price and terms of sal with
t~he schedule at any time thereafter on file which states the lowest
price and the most favorable t.erm~s. Any schedulle or nlotice, filed
hereunder shall become effective five days after the date of filing,
provided, however, that, an increased~ price may bec~omle effective at
suc earlier date as the member filing the same shall fix.,
SECTION 6. The Code Aulthority shall promlptly supply all ml~nember
of the Industry who manufacturer any particular product with copies
of al schedules, revised schedules, and nlotic~es of writhdrawcval, wIchich
pertain to such product. Immediately upon. receipt of infoirmation
relative t~o the withdrawfal of a, price for any prod uct, any member mlay
file notice: of withdraw wal of his own price for the! same prod u ct effec ti ve
as of the same date as thle notice of w~ithdrawarl of such other member.
Immediately on receipt of information that a schedule ~then. on file
has been revised, or that, a new schedule has been filed, any member
may file apn p re ised 11P sced le nfo~lrming as to prices and terms to the
schedule of such other maember, and effective on the samle date, or he
may notify the Code Aut~hority that he adopts as his own the schedule
of such other :member. In. thec latter event, he shall be deemed to
have filed a revised schedule conforming to the rev-ised schedule of
such other me~mber.
SECTION 7. No such schedule of prices and terms of sale filed by
any member, or in effect at any time, shall be such as to permit the
sale of any product rat less than thle cost thereof to such member
determined in the manner provided in Section 11 hereof, provided,
however, that any member may by notice to the Code Authority
adopt as his ow-n a lower price filed by another designated mecmber.
Such adoption shall become automatically void uipon the withdrawal
or revision upward of th3e price adopted.
SECTION 8. NO member who shall have filed a price,, or adopted as
his own a price filed by another m~emrber for any product of the Indus-
try, shall sell such product for less than such price or ulpon terms or
conditions more favorable than stated in surch price schedule. No
member who shall have failed to file a price for any product for
which the open price plan is in effect, shall sell suc~h product at a
lower price or on terms more favorable than the lowest price and most
favorable terms stated in any price schedule for surch product then
on file.
SECTION 9. The Code Auth~orityr shall furnishi at cost to any non-
member requestinga theml, copies of any price schedules which have
been filed with it.. Such price schedules shall. be made available to
non-members at the same timeP tht they are sent to members. 1
SECTION 10. No member shall sell any product of the Industry
for which no open price plan is in effect a~t less than the cost. thereof
to such member, determined as provided in Section 11 hereof, except
to meet the price of a competitor whose price does not v~iolate such
1 see paragaph 2 of order approving this Code.


SECTION 11. Cost, for the purposes of thi Article, shall be deter-
mined pursuant to the method of accounting and costing prescribed as
provided in Sect~ion 1 hlereof as soon as such method is adopted and ap-
prved, and theretofore: puirsuant to the method employed by such mem-
ber subject t~o such preliminary rules as the Code Authority shall
from~ time to time prescribe! with the approval of the Administrator.
SECTION f2. EiOr the purpose of det~ermininga whether Sections 7
and 10 hereof have been complied with, every member shall upon the
request of the Code Au thority furnishl a designated agency of the Code
Authority in respect to closed transactions only, with complete infor-
mation in regard to any quotation, order, contract, or sale of any
product of thle Industry, including information as to specifications,
quantities, price, condlit~ions of storage, transportation or delivery,
terms of bil ing, cash or trade discounts allowed and other pertinent
facts relating to such quotation, contract or sale.
SECTION 13. Nothing herein contained shall be construed to pre-
ve~nt thie disposition of distress merchandise required to be soldl 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 the Code Authority and the Administrator
may approve.
SECTION 14. Nothing herei contained shall be construed to prevent
the fulfillment of a bona fide contract existing on the effective date of
this Code.
SECTION 1. Each- member shal prepare and file with an impartial
agent designated by the Code Aut~hority at such times and in such
manner as it mnay prescribe, such statistics, data and information
relating to plant capacity, volume of production, volumle of sales in
units and dollars, orders received, unfilled orders, stocks on hand,
inentory both raw and finished, number of employees, wage rates,
employee earnings, hours of work and other matters, as the Code
Authority or the Administ~rator may from time t.o time require. Any
or all information so furnished by any member shall be subject to
checkig for the purpose of verification by an examination of the books,
accounts and records of such member by any disinterested ac-
coun tant or accountants or other qualified person or persons desig-
nated by the Codle Authority.
SECTION 2. Except as otherwise provided in the Act, or in this Code,
all statistics, data and information filed or required in accordance with
the provisions of this Code shall be confidential and the statistics,
data and information of one member shall not be revealed to another
ember;. No such data or information shall be published except in
combination with other simiar data and in such a manner as to avoid
the~ disclosure of confidential information. The Code Authority shall
arrange in such manner as it may determine for the current publication
of Industry statistics to members.
SECTION 3. The Code Aut~hority shall make such reports to the
Admninistrator as he may from time to time require.
SECTION 4. In1 addition to information required to be submitted to
the Code Authlority there shall be furnished to Government Agencies
such statistical information as the Administrator may deem necessary


for the purposes recited in Section 3 (a) of the Act. N'tothling con-
tained in this Code shall relieve any mlember of aIny existing obligation
to furnish reports to any Government Agency.
SECTION 1. No provision of this Code shall be so applied as to per-
mit monopohies or monopohistic, practices, or to chimnunte, opprecss, or
dxscrmu~nat~e against smnall enterprises.

SECTION 1. The Code Authority may, from time to time, present
to the Admiinistrator recommendations based on conditions in the
Industry which wil tend to effectuate the operation of this Code andl
the policy of the Act, and in particular along the following lines:
(a) For the establishment of additional rules of fair traded p~ac~tic~e
for the Industry and for the modifications of its trade cusltoms, and the
enforcement thereof.
(b) For t~he e~stablishmlent of plans to equalize production writh
demand, so that. the interests of the Industrly and the publlic: may be
properly served.
(c) For dealing w~ith any other inequality) that mnay arise to enldan-
ger the stability of thie `Inzdustry and of production anrd employment.
(d) For an increase or decrease in the number of Industryp members
of the! Code Aulthor~ity and/or for a change ini t~he method of choosing
such members.
SECTION 2. For the purpose of assisting the Code Authorities of
the Paper Mranufacturing a.nd/or Conv-erting Industries in th~e adjust-
ment of all labor disputes and labor complaints arising within such
Industries, the Code ALuthority shall consider the advisability of
creating a Joint Industrial Rela~tions Board for such Industries and
shall report its recommend t~ions to the Administrator.
SECTION 3. Recommnendations made pursunnt to Sections 1 anld 2
hereof when approved by the Administ~rator shall have the same force
and effect as other provisions of this Code.

SECTION 1. The follO~ing are hereby constituted TCrade Practices
for the Industry and failure to comply wvith the provisions thereof shatll
be a violation of this Code.
(a) M~embers of the Industry shall niot prac~tic-e deception in regard
to that which is sold or its selling price by- false or mnisleadling descrip-
tion, sbtcatment, record, or undisclosed consideration.
(b) Membehrs shalll refrain frorm dumpi~ng, extension of stated credit
and secret rebates.
(c) Mlembers shall not wilfully injulre by falsely defaming a c~om-
petitor's goods, credit, or ability to perform his c~ontra~cts.
(d) M~embers shall not wilfully induce! or attem~pt. to ind-uce the
breach of a competitor's contract.
(e) No member shall gie, permit to be givenr, or directly offer to
give, anything of value for t~he purpose of influencing or rewarding
the action of any employee, agent or representative of another in
relation to the business of the employer of sulch employee, the principal


of such agent or the represented party, without the knowledge of such
employer, principal or party. The foregoing provisions shall not be
construed to prohibit free and general distribution of articles com-
monly used for advertising except so far as such articles are actually
used for commercial bribery as herein defined.
(f) No member of the Ilndustry shall ship goods on consignment,
except umder circumstances to be defined by the Code Authority
where peculiar circulmstances of the Industry require the practice.
SECTION f. If an member is also a member of another Industry,
the provisions of this Clode shall apply to and affect only that part
of his business which is included in this Industryv.
SECTION 2. Ally W-Ork or process incidental to, and 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. Such1 of the provisions of this Code as are not required
to be included therein by thec Act, may, w-ith the approval of the
Administrator, bes modified~ and eliminated as changes in circumstances
or experience. may mndicate.
SECTIONV 4. This Code and all the provisions thereof are expressly
made subject to the rightt of t~he President, in accordance with the
provisions of Section 10 (b) of the Act, from time to time t~o cancel
or modify any order, approval, license, rule or regulation, issued
under Title I of said Act, and specifically, but without limitation, to
the right of the President to cancel or modify his approval of this
Code or a~ny conditions imosed by him upon his approval thereof.
SECTION 5. This Code shall become effective on the second Monday
after t~he date upon which it shall be approved by the President of the
United States.
Approved Code No. 295.
Registry No. 406-11.


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