NATIONAL RECOVERY ADMINISTRATION
CcODE OF FAIR-COMPETITION
SUPPLY MANU FACTU RING
For sale by the Superintendent of Documents Washington, D.C. - frice 5 cents
Approved Code No. 432
Registry No. 501--1-04
AS APPROVED ON MIAY 17, 1934
GOVERNMENT PRINTING OFFICE
This publication is for~sale by the Superintendent of Documents, Government
Printing Offie, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
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Approved Code No. 432
CODE O1F FAIR COMPETITION
SP]ECIALTY ACCOUNTING SUPPLY MfAlNUFACZJTUR
As Approved Onr Mlay 17, 1934
APPROVING CODE OF 1EiAIR COMPETITION
SPECIALTY AccoolNTING SUrrrYL MANovaCTRuNsO INDUSTRY
An application having been duly made pursuant to and in full
compliance wTith the provisions of Title I: of the National Industrial
Recovery AcLt, approved June 16, 1933, for approval of a Code of
F'air Com~petition for thle Specialtyr Atccounting Supply Manufactur-
ing Industry, and hearings having been duly held thereon and the
annexed report on said Code, containing findings with respect thereto,
having been mande and directed to the President:
NOW, TIIHEREFIORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
'ursua"nt to authority vested in me by Executive Orders of the ]Presi-
dent, including Executiver Order N~o. 6543--A, dated Decemnber 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find that said C~ode complies in all respects wTith the
pertinent provisions and will promote the policy and purposes of said
Title of said Act; and do hereby order that said Code of Fliair Comn-
petition be and it is hereby approved; provided, how~ever, that the
provisions of Article VII, Section 1, insofar as they prescribe a
waiting period between the filing with the designated agency and the
effective date of revised: price lists or revised termlls and conditions of
sale be and they are hereby stayed pending my further order either
within a. period of 60 days fro~m the effective date of this Code or
after thle completion of a study of open price associations now being
conducted byl th~e National Recovery Admzinistration.
HUan S. JoHNson,
Aldmzinlists~raor for Industrial Recover!
Approval reconunenlded :
Kt. 1\L SmeISON,
D~ivisi zon, Adi cl n istratnor.
The Wth~ite Houlse.
SmR: The proposed Code of Fair Clompetition for the Specialty
Accounting Supply M~anufacturing Industry was submitted on
August 5, 1933, by the Specialty Accounting Supply Manufacturers
Association, an unincorporated membership society, representing
over 70 per cent of the known M~embers of the Industry by number,
and90 er entbyvolume. This Association represents the con-
soldatio ofr cth~~,"~~'~e~; AXutographi'c Register M~anufacturers Association,
the Continuous Formi Printers Association, and the Sales Book
Manufacturers Association. The consolidation was a result of the
recognition by t~he manufacturers involved, that many of the prob-
lems~c both manuifacturing and marketingr were similar and that such
an action would serve to expedite the formulation and facilitate the
ultimate administration of the provisions of the Code of Fair Com-
petition. At the time of the consolidation each of thle individual
associations represented approximately 90 per cent of the volume
of the known members of the Industry.
Aftr te uualpreimiaryconferences a Public Hearing was
coduted ine Wsashreirngn on January 5, 1934, to which all known
Members of the Industry w~ere invited. Every person who requested
an appearance was properly heard in conjunction with statutory
and regulatory requirements. The Code was revised during the
recess of this hearing and was submitted in its present form for
The products of the Industry are divided in three general classes:
Alt~ogarapic Registers, Continuous Forml Stationery of different
varieties and Sales Books, all of which are used principally in stores
and offices in connection with the rendering of sales records, credit
mlemorandla, billing, etc. In the many years of the Industry's
existence, mnuch time and energy has been spent in the development
of the: efficiency of these devlices and system.
Statistics submitted by the Association and tabulated in the Divi-
sion of Research and Planning indicate that sales of industry prod-
uctsj by thle 22 reporting member concerns in 1929 aggregated in
dollar volume $22,000,000. The figures for the same: concerns show
tha;t sales had declined for the year 1933 t~o $15,000,000, or a drop of
roughly 32 per cent. Employmient coincidently declined from 3,500
factory and office workers from June 1929 to 2,810 in September
1933, or a drop of, roughly, 20 per cent.
This latter figure is not directly illustrative of the decrease in
the number of employees because of the almost universal adoption
of the President's Reemployment Agreement by the Members of the
Industry. It is estimated that this action caused an increase of
aLpproximattely 21 per cent in the number of wage earners over the
low for the year 1933. The adoption of the labor provisions as con-
REPORT TO THE PRESIDENT
tained in the Code will not, thlerefore~, serve to materially~ increase
reem ployment. It is estimated, however, that the increase m hourly
rates paid to thle workers affected will result in an aver~age mecrease
to male employees of 21.3 per cent and to female employees of
16 ~per cent.
Employment w~ill further potentially be aidled by the Fair Trade
Practice provisions incorporated in this Code, which prevent certain
unfair methods of competition nows existing int thie Industry and
which, therefore, lay a foundation for thle efificie~nt execution of
Article I, P'urposecs, states the purpose of the Code.
Article II, Definitions, accurately defines specific terms applicable
to the Specialt~y Accounting Supply M~anufacturing Industryr as used
in this Code.
Article III1, Hlours of Labor, establishes a maximum hour limit~a-
tion of 40 hours per week, but permits certain classes of workers,
such as production employees, mechanical workers and artisans, in
a? period in which a concentrated demand places an unusual or tem-
porary burden upon the Industry, to workr 48 hours per week in not
mnore, than 6 weeks in 6 months provided ~th2at they receive a comn-
pensation equal to 11/z times the normal wage rate paid to employees
This Article further establishes a maximum hourly limitationz for
office and salaried workers of 403 hours per week averaged over a
pr~eiod of 5 weeks.
Watchmen are permitted to work 56 hours in one week: provided
that they receive at least 1 day's rest in every 7 day perio~d.
Employees engaged in executive, managerial or supervisory capse-
ity, receiving not less than $35 per week, and those engaged mn emer-
gelc~y repairs and maintenance are! not subject to hourly limitations
provided that thie latter receive comnpensationl equal to 11/2 times the
normal rate for all hours worked in excess of 40 per week and 8
Article I'V, WaLges, establishes a minimum wage for male em-
ployees of 40 cents per hour anld. for female employees of 35 cents per
hour for all except clerical and offce employees who shall receive
not less than $15 per week. This Article provides further that learn-
ers and office boys and girls shall not be paid less than 80 per cent of
respective minimum. wages, at the same tlime limiting the number of
such employees to 5 per cent of their respective divislonts. ProvisEion
is made for the employment of handicapped persons and for the
adjustment of wages abovre the minimum.
Article V, General Labor Provisions, provides that no employer
shall employ anS person under 18 years of age except in clerical,
offce, sales, service, technical, and engineering departments; and in
no event shall anyl emnploy~er employ anly person under 16 years
of a ge.
This Art~icle also sets forth the mandatory provisions respecting
the rights of employees to organize and bargain collectively, pro-
vides for matters for preventingr,,,.,~. the reclassification of employees to
defeat the purpose of the Code, establishes standards for safety and
health and provides for the observance of State laws and the posting
of complete copies of labor provisions of thle Code.
Article VI, Administration, establishes a Code Authority of 7
members to be selected by a fair method of election and provides
for not more than 3 additional members without vote to be appointed
by the Administrator for such terms as he may specify. This Article
also sets forth the powers and duties of the Code Authority.
Article VII, Mfarketing and Trade Practice Rules, sets forth the
trade practices for the Industry, including an open price association.
Article VZIII, Export Trade, provides that no provision relating
to terms of selling, shipping, or marketing shall apply to export
trade or sales of shipments for export tradeh or transactions in the
foreign commerce of the United States.
Article IX, M~odification, makes all the provisions of the Code
expressly sulb ject to the ri gh t of t~he President to cancel or modify
any order, approval, license, rule or regulation issued under Sub-
section (b) of Section 10 of the Act.
Article X, 1\onopolies,, provides that no provision of the Code shall
be so applied as to permit monopolies or monopolistic practices or to
eliminate, oppr~ess or discriminate against small enterprises.
Article XI, Price Increases, provides that the increase in selling
prices shall b~e limited, in so far as possible, to actual increases in
Article XII, Effective Date, states that the Code shall become
effective 10 days after the approval by the President.
The Deputy Achninist~rator in his inal~ report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter;
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 interstate and foreign
commerce which tend to dimlinish the amount thereof and will pro-
vide for the general welfare by promoting the organization of
IndustryS for the purpose of cooperative action among the trade
groups, byr indlucing and maintaining united action of labor and
management under adequate governmental sanctions and suprion
by e~ljim~inain unfair competitivee practices, by promoting the fullesto
possible utilization of the present productive capacity of industries,fuls
by av-oidling undue restriction of production (except as may be tem-
porarlily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, byv improving standards of
labor, and byr otherwise rehabilitatting Indlustry.
(b) Said Industry normally employs not more than 50,000 em-
ployrees, and is not classified byJ me as a major Industry.
(c) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limita-
tion subhsect~ion (a) of section 3, subsection (a) of section 7, and sub-
section (b) of section 10 thereof, and that the applicant association
is an industrial association truly representative of the aforesaid In-
dustryv, and that said association imposes no inequitable restrictions
on admission to membership therein.
(d) The Clode is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and w~ill not eliminate or oppress~r
small enterprises and will not operate to discriminate against themn.
(f) Those engaged in ot'her steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, there~for~e, this Code has been approved.
Hunan S. JOn NsTON,
nAfe 17, 1934.
CODE OF FAlIR CrOMPETITION FOR THJ~E SPECIALTY
ACCOUNTING; SUPPLY MANUFACTURING INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act, this Code is established as a Code of Fair Competition
for t~he Specialty Accounting Supply M~anufacturing Industry, and
its provisions shall be the standards of fair competition for such
Industry and binding upon every member thereof.
W~heereer usedl in this Code. or in any supplement appertaining
thereto, thie terms enumerated in this Article shaUl have the meanings
SECTION 1. The term "LAct means Title I of the National Indus-
trial Recovery Act.
SECTION 2. The term "PreSident means the President of the
United States of America.
SECTION 3. The term "'Administrator means the Adlministrator
for Indurstrial Recovery,
SECTION 4. The term "' Specialty Accounting Supply Manufactur-
ing Industry or "' Industry as used herein includes the manufac-
ture andt original sale, directly or indlirect~ly, of industry products by
a Rlember of the Industry or his agent which includes without limi-
tation any person or corporation occupying a subsidiary or con-
trolling relationship! or one of common, mutual or joint ownership
or control to a lIlember of the Industry.
(a) The ter~m Industry Products as used herein means the
following products and devices:
1. Alutographic and,'or credit registers and/or supplies therefore
which, for t~he purpose of this Code, are defined to mean such ma-
chines and,.'or devices and,;or supplies therefore as are used in making
handwritten records of various transactions.
2. Continuous Form Stationery which for the purpose of this
C~ode is defined to mean multiple sets of "business forms with or
without car~bons, attached and, or folded, for use in billing machines,
typewriters, and other office equipment.
3. Sales Books, which for t~he purpose of this Code as used herein,
are defined to mean bound books of sales checks or tickets for making
originally handwrritte~n records of sales transactions.
SECTION 5. The term Alember of the Industry includes, but
without limitation, any individual, partnership, association, corpo-
rat~ion, or other form of enterprise engaged in the Industry, either
as an employer orr on his or it~s own behalf.
SECTION 6. The term "L Employee means and includes anyone
engageci in the Industry in any capacity receiving compensation
for his services, irr~espectivec of thle nafture or mnethod~ of payment of
such compensation, except a 1\elember of the Indulstry.
SECTION '7. Th~e term~ i' Employer "" meansi and includes anryone by
whomCI1 anly suIch emp~loyee is employis!ed or comipensat~ed.
SECTION 8. The termn L~ar~ner "? as used herein means anl em-
ployee without previous experience engaged to become competent on
one or more operations,; blut w\ho shall not be so classified after ninety
(90) days employmlent.
SECTION 9. Th~e term "AsjisocIation "' as used herein shall mueanl the
Specinity Accounting Sulpply Ma~nufacturing Association, an unin-
corporatedl membership society with its principal office in the City of
C'hicago. State of Illinois.
~SEC"TION 10. The termll Sec~retary as used therein means the
secrletary of t~he Assoeintion.
SECTION~ 11. The term "' Bo3ard of Directors as used hereI~in means
the Boardt of Dir~ector~rs of the Assoc~iatioin elected in accor~dance withi
t~he terms of the B~y-Lawss of thne above-m mentioned association.
AnnIcLE II~I--Hounl orZ Laeon
SEC'TION 1. ;I7G~imiizr UN Ozcr.--On and after the effective date of
this Codle, no employee shall be permlittedl to work in exccess of f-r~t~y
(40) hours mn anly one week or eight. (8) hours in any twenty-four
(241) hour period except as herecin otherwise povided A noirmial
day sh1all not exceed eight (8) hours.
SECTION 2. HOUTs for Clerical aind Oper~ Emiiployeces.--N o person
employed~ in clerical or office w~Pork shall be permitted to work in
excess of fortyv (40)) hours, avecragied over a1 five (5) week per~iod. A
normall day shlll not excpeed eight (8) hours.
SECTION ;3. Ex;eptionsp as to Hours/.-T'Che limnitatio-n as to hours of
labor as specified in Sections 1, 2 and 4 of this Ahrticle III: shall nlot
apply to th~e followinge:
(a) To employees e~ngraged in emergency mlnintenanlce or emer-
gaency repair wor~k, inv\olving breakdlown or protection of life or
p~roper~ty provided that in such special cases not less than one and
one-half (1 -1) times the nlormal wagre. rate for any employees so
employecd shall be paidl for all hours worked in excess of ofoty (40)
hours in anyl~ onle week or eight. (8) hours in any one day.
(b) To persons engagedt inl a malnagner~ial, executive or supervisory
capacity, who~ receive no~t less than thirty-five ($35.00) dollars per
week, and to outside salesmlen.
(c) To w~atchmen w~ho mayv be permlittedl to work fifty-six (56)
hours in any one-weeki period,? provided that such employees shall
have at least one (1) dlay of rest in each seven ("7) day period.
(d) To employees engaged inl the preparation, care, and main-
tenance of machinery andl production facilities, stock and shipping
clerks, and truckmen engaged in outside delivery and pick-up service
who may.! be permitted a tolerance of tenl (10%~) per cent adlit~ional
hours over the maximuml hour's in any one wTeek providled that not
less than one and one-half (1!2) times thle normal ra~te shall be
paid for all hours workedl in excess of forty (40) hours per week,
or eight (8) hours per dlay.
(e) To p~rodluction emnployees, mechanical workers, or artisans
who. during any' periodi in which a concentrated dlemandl upon any
division of the Inldustry shall place an unusual or temporary burden
for production workl upon its facilities or t~o meet seasonal or peakr
requiremecntss or production emnergencies mnay be permitted to work
not more than forty-eight (48) hours per wveek, in not more than
six 6) eek insix 6) onts, rovidedl, that not less than
timie nd one-half the normal rate b adt n mlyes
employed for hours workedl in excess of forty (40) hours per week,
or eight (8) hours per day.
SECTION 4l. Standlcard W~ee.--No employee shall be permiitted to
w~ork more than six (6) dlays in any seven-day period.
SECTION 5. Emlploymen~)t by Scrlerl' ~ Employzers.--No employer
shall knowingly p~ermit any' emnployeee to work for any time, which
when totalled wijth that already performed with another employer
or employers in thiis Indlustryv or other industries exceeds the maxi.-
mumn permitted hierein.
ARTICLE~ 'I7 MrAGES
SECTION i. :1EH.277Hem.~lll l'cge&.j.-On and after thle effective date of
thiis C~ode, except as herein otherwise specified, no male employee
shall be paidl in any pay period less than forty (404) cents per hour,
and nlo female emnployee less than thirt.y-five (35(f) cents per hour.
The minimum rates herein provided shall be construed as hiring
rantes applying to unskilled labor. Other clas.;es of labor shall be
comnpensated at grants abov-e such miinimumn. Wages in effect prior
to the date of approval of this Code, above the miinimum specified,
shall in no ense be reduced.
(a) Learners shall be paid not less than eighty (809c) per cent
of the respective minimums set forth in this Sjection, provided that
the number of learners so paid shall constitute not more than five
(59b) per cent of t~he total number of emnployeesa of any one em-
player, but, in any case each employer shall be entitled to at least
tw~o such employees.
SECTION e. C'ler~ical: and Office Emlployees.--No accounting, cleri-
cal, sales, or service employee working on a weekly basis in any
office shall be paid less than at the r~t~e of fifteen ($;15.00) dollars
p~er weekr; provided, however, that offce boys and girls and messen-
ger~s shall be paid at a rate not less than eighlty (80%~) per cent of
such minimum; andl provided further that the number of such boy~s
anid girls and messengers so paidl shall constitute not more than five
(5%~) per cent of the total number of such employees of any office of
any one: employer, but in any case each employer shall be entitled to
at least one such employee.
SECTION 3. Pi'1'erceork~ C'ompe~nsationn.-Minimuml Wages. This
Article establishes a minimum rate of pay for any pay period which
shall alpply,~ irr1espective of w~hether an employee is actually compen-
sated on a timne-r~ate, piecework, or other basis.
SECTION 4. FemaeIT Emjployfees.-Femalel employees performing
substantially the samie work as male employees shall receive the same
rate of pay as male employees. WThen female employees displace
male employees theyS shall b~e paid the same wage rate as the male
emnployees they have displaced. The Code Authority shall, within
ninety (90) days after the effective date of this Code, file with the
Administrator a list of all occupatio~ns in the YIndustry) in which
both mien and~ women are employed..
SECTION 5~. Equitable adtjusjtments in all pay sChedules~ shlnlt 1b
made within Ithir~ty (30)~ dys after1 thle effectivi diatet of th~iS CodeO
by any employer who hasnot. herctcofore made uchl adjustmlents-
under the National Indu:strial Recov;\eryS ALct. In no eve-tnt, how-
ever, shall hourrly rates be redluced~. Withiin sixty 6)dy fe
the effective date of this Code, each MRembert~l of theO Industr hall
make t~o thle Code Authlority l r'ep)ort of such~ aljustmnclt whether
made p~rior or subsequent to the dates of applrov\al of this cCode.
SECTION 0, Hand7i7i'liCappe PerW,.lson.-A-~ pers~on whose learning~ Capae(-
ity is limnitedl because of age or physical or mental handt~icap~, may be
employed onl light, work at a w-age beclow the miinimumln estalblishedl
by this Code if the emlplo~yer obtainsi from the Statte ~Authority
de~signated by the United StaLtes Deparnltment of Labor a Cer~tificate
azuthorizinf hisi~ employment at such wages and for such hours ~as
shall be stated in the Ce~rtifirn e. Each employer shall file m~onlthly
wit.h the Code Authority a list- orf such persons employedl b~y- hlim,
shlowing the wages paidlc to, and1: thle maximum hours of workr of
SECTrION 7. Payment of IWag88.-Eanchl employrgc shacll maklle pay-
ment of all wage~s in lawful currency or by neg~otiable check ~there-
for, payable onm demand.l These. wages shall be exempt from. any
payments other than those volulntar~ily ordi1ered p~aid~ by the wage
earner, or requiredl by ltaw. WSage~cs shall be paid at no greater in-
terval than one-half month, and~ Kalrie~s at no greater intervatl than
one month. No employer shall withhold wag~es, except aIs otherwise
pr~ovided b~y law.
ARTICLE V-Gar;NTT.u, LABon EPur:ns7Ioxs.
SECTION 1. ChA## Laboii.--On andl~ after the effctcive da~te of this
Code, no p~ersoni under 18 years of age shall be empiltloyed in the
Industry except in elericrl, office, salesr, service, techn-;i nt nd- engi-
neer~ingr depa~rtmlents,, and no petrson~ ulnderI 10 years of age sharll be
emnployed inl anyr' c~a nit y. In any state an emp~lloyer shall be d~eemned
to have complied with this prov~iision as to agfe if he shall hlave on
file a. crptificate or iperin;t. duly sigrnedt by3 the Authiority of such state
emupowered~ to issue~~ emp!loyment or age cer~tificate s or per1mits show-
ing that thue emloyer,-e is: of th~e required age.
SECTION 2. Prov~i~sionsl of thei Act.-(at) Enploy~ees shall hanve the
right to orgranlize andl bargain c~ollectively through represe~ntat~ive~s of
their owrn chioosing, andi shall b~e free from the inter~fe~renIce, restraintl,
or coercionl of employers of labor, or their agents, in thle designation
of such representatives or in self organizations, or in other concerted
activities for the puirpose orf collectiven bniarginig or othcr mutual
aid or protection.
(b) N~o employee and no one seeking emp~loyment shall be required
as a condlit ion of emnploymnent to join a ny compa ny union or to ref ra i n
from joining, organizing, or assisting a labor organization of his own
(c) Emiployers shall comply with t~he maximum hours of labor,
minimum rates of pay', andl other conditions of emp~loyment appro1vedc
or prescribedl by the Prescident.
SECTION 3. Redlass'jifCfeation of Eml~ployees.--No employer shall re-
classify employees oir uties of occupations performed, or engage in
any other sutbterfuge for the purpose of defeating the purposes or
provisions of the Act or of this Code.
SECTION 4. Stanldalrds for Sa~fety and Health.-livery employer
shall make reasonable provisions for the safety and health of his
employees at the place andl during the hours of their employment.
Standards for safety andl health for this Industry shall be submitted
by the Code Authority to the Achninistrator within six months after
the approval of this Clode.
SECTION 5. State Lawcs.--No provision in this Code shall super-
sede any State. or Fedleral Law which imposes on employers more
stringent requirements as to agoe of employees, wages, hours of
work, or as to safety, health, sanitary or general workringoni
tions, or insurance, or fir~e protection, than are imposed byth'is
SEcTION 6. POsting.--All employers shall keep posted complete
copies of t~he Labor Provrisions (Articles III, IV, and V) of this
Code, and all Amnendmlents thiereto, ini conspicuous places accessible
ARTICLE VI--ORGANIZATION, POWERS AND DUTIES OF THE CODE
SECTION 1. OT~~rgaization and Cocnsfitition .-A Code Authorityr to
admiinister this Cod~e is hereby constituted which shall consist of
seven voting members. Six of such members shall be selected from
the Board of Direct~ors; thle other voting member shall be elected
by the members of the Industry not members of t~he Association.
The election of all members to t~he Code Authority shall be by a
fair and equitable method of election to be approved by the Admin-
st~rntor. In the event that the selection of the non-member of the
Association is not made within thirty (30) days of the effective
date of this Codle, such member mnay be selected by the Adminis-
S~ECTION 2. In addition to the above membership there may be not
mnore than three (3) addlitional members without vote and without
expense to t.he Indu~st~ry, t~o be appointed by t.he Administrator to
serve for such terms as he may specify.
SECTION 3. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Author-
ity shall (1) impose no inequitable restrictions on membership, and
(2) submit to the Administrator true copies of its articles of asso-
ciation, by-laws, rules and regulations, andt any amendments when
made thereto, together withI such other information as to member-
ship, organization, and activities as the. Administrator may deem
necessary to effectuate the purposes of the Act.
SECTION 4. In1 orders that t.he Code Aut.hority shall at all times be
truly representative of thle Industry and in other respects comply
withl the provisions of the Act, the Administrator may prescribe
such hearings as he may deem proper; and thereafter if he shall find
that the Code Authorityv is not truly representative or does not in
other respects comply with the provisions of the Act, may require
an appropriate modification in the method of selection. of the Code
Au tho rity.
SECTION 5. (1) It being found necessary to support the Adrninist-
trationn of this Code, in order to effectuat~e the policy of the Act
and to maintain the standards of fair competition established here-
under, the Code Authority is authorized:
(a) To incur such reasonable obligations as are necessaryI and
proUpr for t~he foregoning purposes and to meet such oblimrations out
of funds which shall be held in trust for the purposes oY the Code
and raised as hereinafter provided:
()To submit to the Administra~ntor for his approval, subject to
suhnotice and opportunity to be heard as he may deem necessary:
1. Anl itemized budget of its estimated expenses for the -foregoing
2. An equitable basis upon which the funds necessary to support
such budget shall be contributed by all memlwtrs of the Industry
.entitled to the benefits ocer~uing from the maintenance of such stand-
ards, and the administration thereof:
(c) After such budget and basis of contribution have been ap-
proved by the Adlministrator, to determine and collect equitable con-
trib~utions as above set forth, and to that end, if necessary,.to insti-
tute legal proceedings therefore in its owCn namle.
(d) After such approval by the Adminstrator non-pay~ment by
a Illember of the Industry, of his or its eqluitable share of the costs
of code administration, shall constitute a code violation.
(2) Each 1\fember of the Industry shall be liable for his or its
equitable contribution to the exspelnses of the maintenance. of the
Code Authority as hereinabov~e provided. Only M~ember~s of t~he
Industry complying with the Code? and mankingr such contribution
shall be entitled to participate in the selection of the members of the
Code Authorityv or to receive the benefits of its voluntary activities
or to makie use of any N.R.A. insignia.
SECTION 6., Nothing contained in this Code shall c~nst~itute t~he
members of the Code Authority pa rtners for any purpose. Nor shall
any members of the Code Authority be liable in anly manner to
anygone for any act of any other member, officer, agent, or employee
of t~he Code Authority. Nor shall any member of the Code Authlor-
ity, exercisiner realsonable diligence inl the conduct of his duties herze-
unde, b liale o anonefor ny ctio~n or omission to act under
this Code, except for his ownwilumsfnncoroneac.
SECTION ;r. POW1-8ri. Gild D~uties.--Subject to such rules anld regula.-
t~ions as may be isrsuedl by the Administra~tor, the Code Authnorirty
shall have th~e followring further powers and duties, the exercise of
which shall be reported to the Adm~inistr~ator and shaHl be subject to
his right, on review, to disatpprove, after such hearing as hne msay
prescribe, any action taken by the Code Authority. If the A~dmin-
istrator shall determine at any time thatany action of the Code
Authority or any agency thereof is unfair or unjust or contrary to
the public interest, the Administrator may require that such action
be suspended to affordl an opportunityormeigtnofhemrs
of such action and further considerafrI siration byc ode Atho mrity o
agepncy endirngr fnal action which shall n~ot be etTectbive unless the
Administrator approves or unless he shall fail to disapprove after
thirty days' notice to him of intention to proceed with such action
in its original or modified form.
S(a) To make investigations as to the functioning and observance
of any of thle provisionls of this Code at its owvn instance or upon
t~he complaint of any person affected and to report thle result thereof
to the Admninistrator. To receive complaints of violations of this
Code or disputes arising thiereunder, make investigations thereof,
provide hearings thereon, adjust such complaints and make such
decr~isins as are! neces.sary t.hereon and to bring to the attention of
tthe Admiinistrator for prosecution unadjusted complaints of viola-
(b) To insure the execution of the provisions of this Code and
provide for the com~pliance of the Industry with the provisions of
(cd ) To ad-opt By-laws and Rules and Regulations for its pro-
ceure and for the administration and enforcement of the C~ode.
The Code Authority shall promptly furnish to the Administrator
true copies of the By-laws, Rules, and R~egulations adopted pursuant
to this paragraph.
(id) To obtain from Mlembers of the Industry through a confiden-
tilagency (for the purposes of this paragrTaph the Secretary) such
statistical Information and reports as are required for the admiinis-
tration of th~e Code and to provide for submlission by Mrembers of
the Industry of such statistical information and reports as the Ad-
ministrator may deem necessary for the purposes recited in Section
8 (a) of thle Act, which information and reports shall be submitted
by Ifembers of the Industry to such Federal and/'or State agencies
as the Administrator may designate; provided, that nothing In this
Code shall relieve any Mlember of the Industry of any existing obli-
gations to furnish reports to anyGornetanc.N idi
vidal tatstcalreprt shll e isclosed to any other Mfember of
the Industry or any other partly except to suchl Goverrunlental agen-
cies as mayT be directed byr the Administrator.
(e) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
hecrein, provided that nothing herein shall relieve the Code Auth~or-
ity of its duties or responsibilities under th~is Clode and that such
trade associations anld agencies shall at all times be subject to and
comp~ly with the provisions hereof.
()To make recommendations to the Administrator for the coor-
dination of the administration of this Code with such other codes, if
any, as may be related to the Industry.
(g) To oonperate. with the Adrministrator in regulat~ingr the use of
any NRA insignia solely by those M~embers of the Industry who are
complying withl this Code and are mak~ingo equitable contributions to
t~he expenses of the Code Aluthority.
(h) To recommend to the ASdministrator further fair trade prac-
tice pr~ovisions to govern M~embers of the Industry in their relations
w~ith each other or with other industries, and concerning control of
production through voluntary agreement and to recommend to the
Admini~strator measures for industrial planning, including st.abiliza-
tion of employment.
(i) To formulate an accounting system annd methods of cost find-
ing and/or estimating capable of use by all Mdembers of the Indtustry.
After such system and methods have beenl formulated and approved
by the Administrator full details concerrung them shall be made
available to all members. Thereafter all members shall determine
and/or estimate costs in accordance -with the. principles of such.
(j) To prescribe from time to time the formr and arrangement
of a schedule to be used by Memrbers of I~ndust~ry for filingr prices
and terms or conditions of sale for industry products, tndd to de-
termine the classification of industry products to be included therein;
however, any M~ember of the Industry shall not be prevented from
including in his price lists any industry products manufacturedd and
sold by Lhim. Neither the form and arrangement prescribed, nor
the method of classification of industry products shall ~be used
directly or indirectly to fixr prices, indicate higher price levels, or
forecast priei trends.
ARTICLE 71 ---laARKETING AND TRADE PRACTICE RULES
SECTION i. Pr Od SChccd'M68.--( a) Each MIlember of the I~ndustry
within thirty (30) days after the effective date o~f this Code shfl~l
file with the Code Authority as many copies as the Code Authlority
may require. of schedulesp cont~aining price lists and terms or condl-
tions of sale at which such member is offering those industry pr~od~-
ucts for sale, for which thle Code Authlority has requiredl a scheduled
of prices and terms or conditions of sale to be submitted pursuant
to paragra.ph (j), Section 7 of Article VI.
(b) The original schedules filed in secordance with thne above para-
graph (a) shall become eflFectivce on the date of filing thereocf w7ith
the Code Authority.
(c) The Code Authorit~y forthwith on such original filing shall
notify all kn~own Mdembers of the Indlustr~y of the co~ntenlts thereof.
(d) Alny Member of the Indlustry3 desiringa to change any price
or prices and/or terms or conditions of sale shall notify the Code
Authority of such intention by filing a revised schedule, which shall
become effective t~en (10) days thereafter. The rIeise schedule so
filed with the Code ~Authority Shall be immediately distrlibute~d
among the known Mepmber of the Indus~try waho thereulpon may file,
if they so desire, revisions of their schedules to meet suc revisions in
the revised schedule first filed, andc which shall become effective upon,!
the dlat~e the revised schedule first filed becomef3 effective. In. the
event t.hat any Alember o~f Industry shall nlot receive sufficient notice
of the filinrr by any other Member of Indlustry of revisions in such
other Alremier of Industry's price or prices and/or termsl or condli-
tions of sale as will enable him to meet such revisions of such other
member on the effective date thereof, then if such member shall file
with the Code Authority such revisions of his price or prices and/o~r
terms or conditions of sale as may be required to meet, the revisions
filed with scuch other member, within 48 hours after thle receipt of
notice thereof, the revision so filed ly such membler may become
effective on the same dlate as the renisions of such other member,
or if they be already effective may become effective immediately.
(e) Published or Llled prices shall include terms of payment,
length of baookngs or contracts and f.o~b. point, or points, of origin
and such other provisions as may be necessary to fuly inform the
trade of all conditions of sale.
(f) Origainal schedules and all revisions thereof shall be made
available to the public.2
SECTION 2. Trade Pratctice Rules.--The following trade practices
are declared to constitute methods of unfair competition between
MIRember~s of th~e Indust~ry, and no ;Ifember of the Industry shall use
or engage in any of them, directly or indirectly, through any officer,
agent or employee. Engaging in any one of such trade practices or
of any other practices which hereafter may be declared to be unfair
methods of competition by the Code Authority, approved by the
Administrator after such hearing or hearings as he may prescribe,
shall be deemed a violation of this Code.
(a) Failing to file schedules or changes therein, as required by
Section 1 of this Article.
(b) Selling or pa3rticipating in any sale of any industry product
by a M~ember of thie Inidustry at any price other than. that set forth
in his then currencrtly etlrective schedule or uiponi any terms or con-
ditions contrary t~o those contained in such schedule.
(c) Permitting, dir~ectly or indirectly, the consummi-ation of any
sale made wit~h the intent, or having the effect, of violating thle pro-
visions of the Act or the Trade Practices of this Code.
(d) Pricing and ;or selling indus-try prodlucts by any Miember of
thae Indlustry at a price. below his or its cost as determined pursuant
to paragraph (i), Sectionl 7 of A~rticle V'I; provided, however, that
a member miay meet the price of a competitor whose price doesj not
violate the Code; and provided further that a member may make
such sales as necessary to dispose of cloistress merchandise and/or
products not up to specification. Full information concerning such
sales shall be reported to the Code Authority and to all l~iemnbers of
(e) Paying or allowing r~ebates, refunds, commissions, credits, or
unea~rnedl discounts, whether in the form of money or otherwise, or
the extension to certain purchasers of special services or privileges
not extended to all purchasers of the same class on like terms and
(f) Prepaying freight charges with the intent or with the effect of
-grantingr disem~i nmatory credit allowance.
(g) Predatinlg or postdating any invloice or sales contract except
to conform to a bona fide agreement entered into on the predate.
(h) 1\Iarking falsely any product of the Industry or intentionally
m isrenpresenti;n g----I---- t analysis of content, size or wFeight; or thle making of,
causing, or perm17ittingb to be mande, or publishing of any false, mis-
leading, or deceptive statement by way of advertisement, invoice, or
otherwise concer~ningi the size,qultuniycacernare
preparation, or origin of any ina:t?,~odunt S cacer treustry prod uct.
(i) Deviatingg fi~rom the published and previously established speci-
fication, for the purpose of influencing a customer or prospective
1See paragraph 2 of order approving this Coda
(j) Defaming competitors by falsely imputing to them dishonor-
able conduct, inability to perform contracts, questionable credit
standing, or by other false representation, or by fase disparagement
of the grade or quality of their goods.
(k) Using in written or oral form, unless authorized, trade-mar~ks,
trade names, or slogans used by a competitor.
(1) Inducing or attempting to ind-uce the breach of an existing~r
oral or written contract between a competitor and his customer or
source of supply, or interfering with or obstructing the performaance
of such contractual duties or services.
(m) 'Aiding or abetting6 any person, firm, association or corpora-
tion, directly or indirectly, in. anly practice which wo~ld ~tend to
defeat. the provisions of the Act and of this Code.
(n) Repudiatinga contracts entered into in good faith when the
purpose of such repudiation is to create for such member an unfair
(o) Giving, permitting to be given, or directly offering to give
anything of value for the purpose of influenemng or rewarding the
action oYany employee, agent, or representative of ano~ther in rela-
tion t.o the business of the employer of such employee~, the principal
of such agent or the representedd party, without the lalow~ledge o~f
such employer, principal, or party This commercial briberyv pro-
vision shall not be construed to proibit free and general distribution
of articles commonly used for adve~rtising except so far as such
articles are actually used for conurner~cialbribery as her~einabove
~AnTICs VIII--ExroaR TRADE
No provision of this Code relating to pric~ens terms of selling,
s~hipp'ing, or marketing shall apply to export trae or sales or ship-
ment for exottae o rnaton ntef rin mmreo
the Unite~d~sE ~ Stat e rt~nnto- nteflees. nC~lle' 8O
SaCrrIoN 1. This Code and all the provisions thereof are expressly
made subject to the right of the President in ac~cor~dance with the
provisions of subsec~tion (b) of Section 10 of the Act, from time to
time to cancel olr mnodify~ any order, approval, license, rule, or regula-
tion issued~ under sa.Id Act; and specifically but without limitation,
t~o t.hle right of the Pr~esidlent, to cancel or modify his approval of this
Code, or any3 conditions imp~osedl by him upon his appr:ovall thereof.
SECTION 2. Such of thie provisions of this Code as are not required~
t.o be included therein by the Act mnay with the approval of the
Adlministrator be amrend~ed as provided in Section 3 hereof in such
manner as may be indlicated by the needs of the public, by changes
in circumstances, or byr exper~ience; all of the provisions of this Code,
unless so mod~ifiedl or eliminated, shall remain in effect until June
SECTION 3. An Amendment may be proposed by any interested
party$, either to the Code Authority3 or directly by or to the Admin.
Istrator. All proposed Amendmlents shall be re~flrerre to the Code
Authority, who shall give M\emnbers of the Industr~y an opportunity
to be heard thereon; and thereafter the Code Authority shall make
such r~ecomlmendaltions thereon as is deemed proper, provided, how-
ever, that w~hen alpproved by the Administrator, as necessary to
effectuate the policies of the APct, after such notice and hearing as
he may prescribe, any proposed Amnendment shall thereupon become
effective as a part of the Code.
SECTION 4. The Code Authorityr mayl mak~e recomlmenda~tions for
modifications of this Code to the Admuinistrator which shall become
effective as a part of this Code upon approval byS the Administrator
afte such notice and hearing as he mnay prescribe.
No provision of this Code shazll be so applied as to promote
moc-nopolies or monopolistic practices, or to eliminate, oppress, or
discriminatne against small enterprises.
ARTICLE ~XI-PRICE INCHEASSES
Whereans the7 policyo of the Act, to increase~ real pulrchasingr power
will be made more dlificult of consummation if prices of gooods and
services increase. as rap~idl~y as wages, it is recognized that price
increases except such as mary be required to meet individual cost
shouldl be delayed, but when made such increases should, so far as
possible, be limited to actual additional increases in the seller's costs.
AIRTICLET XII--EFECTIV'E D.LrE
This Code shall be in effect beginning ten (10) days after its
approval by the President.
Approved Code No. 43~2.
Registry No. 501-1-04.
UNIVERSITY OF FLORIDA
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