Approved Code No. 249
Registry No. 404--1--07
NATIONAL RECOVERY ADM\IINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON FEBRUARY 1, 1934
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Approved Code No. 249
CODE OF FAIR COMPETITION~
As ApprovTed on February 1, 1934
APrir~Nofw CODE OF FAIR COMPETITION. FOR TH-E TAG INDUSTRY
An application having been duly made pursuant to and in. full
compliance with the provisions of Title I of the National Industrial
Recov~ery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Taga Industry, and hearings having been
duly held thereon and the annexed report on said Code, containing
findings with respect thereto, having been. made and directed to thle
NOW, T~HEREF~ORE, on behalf of the President of the Unlitedl
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Exmecutiv~e Orders of the
President, including ExecutivPe Order No. 6543-A, dated D~ecember
30, 1933, and otherwise; do hereby incorporate by~ reference said an-
nexed report and do find that said Code complies in all respects wiith
the pertinent provisions and will promote the policy and purposes of
said Title of said Act; and do hereby order that said Code of Fair
Competition be, and it is hereby, approved; provided, howevetr, that
the provisions of Article VTI,~ Sections 2 to 9, inclusive, insofar as
they prescribe a waiting period between the filing with the Code
Authority (i~e. actual receipt by the Code Author~ity) and the effeec-
tive date of revised price lists or revised terms and conditions of sale
be, and they are hereby, stayed pending my furlthetr order; provided
further, than within ninety days I may direct that there be a fur-
ther hearing on such of the provisions of said Code as I may
designate and that any order which I mray m~akei after such hear-
ing shall havre the effect of a condition on the approval of said
HIUan- S. Jof-NSON,
Ad ministratror for lIndustrial Recovery.
GEO. Is. BERRYIT
February ~1, 1934.
37i487*---313-175 -34 (53)
REPORT TO THE PRESIDENT
ThLe WChite Hiouse.
SmR: Thiis is a report of the hearing on the Code of Fair Competi-
tion for thne Tag Ind~ustry, conducted in WaTshing-ton on October 19,
1933, in accor~dance with the provisions of Title I of the National
Indll t~ial PRecoveryS Act.
HOURS AND WAGES
TIhis Code p~rovides a standards 40-hour week for factory workers
with a, weekly tolerance of eight hours to be paid for as overtime.
The usual exceptions ar~e made in regard to nonprodluctive em-
ployees. Office emplloyees are limited to an average of 40 hours per
wceek over an eigh~t-week per~iodl.
Thle minimiumi w~age rate in the North for hourly paid employees
is 40C per hour for males and 33g per hour for females. In the South
the miinimnum wage rate for hourly paidl employees is 354 per hour for
males and 30Q per hour for females. Office employees will receive a
minimumn wage of $15.00 per week in the Nor~th andt $14.00 per w~eek
in the South.
A1n open-price plani of selling is provided, and selling below cost,
except to meet competitiono, is prohibited.
Provision is made for furnishing tihe Admuinistrator with such
statistical data as he may require.
ECONOMIC EFFECT OF THE CODE
Thle Inldustr'y mPl~~oyedI in 1929 a~ppr`oximately 2,200 persons, and
inn July 1933 about 1,800 persons. In Septembler 1933, the number of
uinemploy,)ed inl the Indu~stry had been reduced by approximately one
half ctue to the effect of the Presidlent's Reemnploymnent Program.
Thle effect of the Code will be to employ from 286i to 330 persons over
the July 1933 total.
The total incr~ease in pay rolls as a result of thie Code will be
18 t~o 20%.,
The Depyuty Administratorr in his final report to m~e on said Code
having found as her~ein set forth andi on the basis of all the proce~ed-
ings in thiis ma~tter;
I. find that:
(a) Said Code is w~ell designed to promote the policies and pur-
poses of TCitle! I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try~ for the purpose. of cooperative action among the trade.groups,
by inducing and mnaintaining united action of labor and management
under adequate governmental sanctions and supervision, by elimninat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agfricul-
tural products through increasing purchasing power, by reducing and
relieving unemployment, by improving standards of labor, and by
otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 emu-
ployees; and is not classified byi me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitat-
tionn Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; anld that the applicant associa-
tion is an industrial association truly representative of the aforesaid
industry; and that said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
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 deprived of the right to be heard prior to approval of said Code.
F'or these reasons this Code has been approved.
HUGH S. JOH-NSON,
FEBRUARY 1, 1934.
CODE OF `FAIR COMPETITION FOR THE TAG INDUSTRY
To effectuate the policies of Title I of the National Industrial Re-
covery Act, the follow-ing is hereby established as a Code of Fair
Competition for thle above-named Industry and shall be binding on
every mlember thlereof.
Thle following wor~ds are used in this Clode with~ the meaning herein
C" Indus~tryl "--The manufacturers of Shippring and System Tags,
Merchandise and Mlarking Tags, Pin tickets.
Member "-A~i natural person, partnership, corporation, associa-
tion, fruist, trustee, trustee in bankruptcy, or receiver, engaged in such
"Act "--Title I[ of the National Industrial Recovery Act.
"'Admninistrato r "'-The Admlinist~rator for Industrial Recovery
under Title I in the Act.
AnriZcts II-ORGCANIZATION AND ADM~hINIS~TILTIO N
SECTION 1. The members of the Executive Commnittee of the Tag
Mianulfacturers Institute, together w~ith such other person or persons
as the Aldministrator may desiganate, are hereby constituted the Code
Authority of the Indust ry. The Mlembers of the Code Author~ity des-
ignated bjy the Administrator shall act in an advisory capacity, shall
have nlo vote, andf shall serve without compensation from the
Sj~c. 2. The saidl Instituite shall impose no inequitable restrictions
on mlemlbership and shall file withi the Administrator certified copies
of any amnendmients of its By-Lnws. relating to eligibility or admis-
sion to mnembership in said Instit~ute, or relating to the method of
selection of the mnember~s of such Executive Committee which said
Institute many hereafter adopt.
SEc. 3. The Adlministrator miay at any timie prescribe a different
m~eth~od for selecting the Indlustry members of the Code Authority,
aind thereafter, suich members shall be chosen in the manner so
SEc. 4. The Code Authorit~y is charged generally with the duty of
Administering this Code. If t~he Administrator shall determine that
any action of the Code Authorit~y or any agency thereof is unfair or
unljust or contrary to the public interest, t~he Administrator may re-
quir~e that such action be suspended for a period of not to exceed
thir~ty dlays to afford an opportunity for investigation of the merits
of s~c~h action and further consideration by such Code Authority or
agency pending final action, which shall be taken only upon approval
by the Administrator.
SEC. 5. TPhe expenses of administering this Code shall be! borne pro
rata, in accordance with a formula to be adopted by the Code Au-
thority, by all members of thne Industry who accept the benefit of
the services of the Code Authlority or otherwise assent to this Code.
rSEC. 6. The Code .Auth~ority shall have power to invest~igate al-
leged violations of this Code and acts or courses of conduct by any
member .which are or appear to be contrary to the policy of the Aclt
or wcphich tend or may tend to render ineffective this Code and to
report the same with recommendations to the Administrator.
SEC. 7. T~he Code Authority is hereby constitutedl the agency to
endeavor to effect, by arbitral proceedings or otherwise, adljus~tments
of contracts enlterecd into by members of the Industry, where the costs
of executing such contracts are increased through the application of
the provisions of the Act or of this Code.
ARTICLE III[--110IURS or LABOR
SECTION 1. Employees in the Industry shall not be required or per-
mitted to work hours in excess of the limits pr~escribed~c in the follow-
SCHEDULE OF WORKING :IIOCIISB
(a) T~atchm~-elz.- Fifty Six (56) hours in. anyp one week, but not
more than six (6) days in any seven (7) day period. Or fifty-six
(56) hours in any one week, but not more than eight (8) hours in
any ~one day.
()Cha~uffeurs, truckdrivers, andl their helperis.--One Hundred
eighty (180) hours in any period of four (4) consecutive weeks, pro-
vilded, however, that time worked in excess of nine (9) hours in any
one day or fortly-five (45) hours in anly one week shall be paid for
at not less than time and one third.
.(c) Eng~linEes, fiemen'i, electricians, filt~r-pan~t em;Joyees-~~.i, elec-
trio and h~ydroelectrio opieratzors.-One hundred and sixty-eight
(168) hours in any period of four (4) consecutive weekrs, Iprovidled
however, that time worked in excess of nine (9) hours1 in any one
day or forty-five (45) hours in any one weekr shall be paid for at not
less than time and one third.
(d) All other laborers, mechanical wcoiXrker, or artisans empnloyed
in, anly plant, mill, or factory or on w~ork% conn~7ectedl with the opera-
tion2 of SUChL plant, mzill, or factory.--Eighlt (8) hours in any one day
and forty (40) hours in any one wreek, provided, however, that these
maxsimumn limits may be exceeded for any reason at any time pro-
vided that all time worked in excess of the maximums pre~scr~ibedl
shall be paid for at not less than time and one third, and pr1ovided
further, that no employee shall be required or permitted to work in
excess of ten (10) hours in any one day or forty-eight (48) hours
mn any one wFeek.
(e) Employees regularly engaged in a wnllagemral or exFecutive
capaelty and thieirl personal secretarcies, foremnen, and supervuiso~s,
recceiving thirty-yfize ($E35.00) dollars or more per week, and outside
salesmcn. -NIo limitation.
(f)3 A ll other emnlployees.--Fo rty -e ight (48) hours in any one week
ndnot to exceed~ three hundred twenty (320) hours mn a.ny period of
eight (8) consecutive weeks.
(g5) Excepting only watchmen, firemen, repairmen, and those em-
ployees namned~ under paragraph (e) of this section, time worked by
empiloyrees on a seventh consecutive day shall be paid for at not less
than timie anid one third.
SEC. 2. NO Ilmnitation containedl in said schedule shall apply to
employees of any class when engaged in emlergency repairs or emier-
gency maintenance work occasioned by breakdowns or involving
protection of life or property, provided, however, that all time
workedl in exc.essi of the limitations prescribed in said schedule shall
be psid fori at not less than timne and one third.
O-EC. :3. NO elllploye~r shall knowvingly permit any employee to work
for any~ timie w-hich, when totaled w~ith that alreadyv performed withi
anothller employer or emnployers in this Industry, exceeds the' maxi-
mum p'ermittedj herein.
SEc. 4. No, felliale empllloyee shall11 be required or permiitted to work
between thne hourls of 10:00i P.MI. andl 6:(00 Al.M.
SECTION i. The milmmnum rate of wage of any laborer, mechanical
worker, or ar~tisan employed in anyplnml ofatrorn
wyorkt connected withn the operation of n sc plant, mill, or factory o
shall be as follows:
(a) In the Northern zone, which shall consist of all of the terri-
tory of the Unit~ed States except the States named in subdivision
M~ale labor, 40 cents per hour.
Female labor, 33 cents per hour.
(b) In the Southern zone, which shall consist of the States of
Virgmnia,, Teninessee, North Ca rol in a, Sou th Ca rol ina Geo rgia ,
F~lorida, Alabamna, MIississippi, Louisiana, Arkansas, and Texas--
M~ale labor, 35 cents per hour.
Female labor, 30 cents per hour.
SEO. 2. Thle mninimiumn rates of wages for all other employees
shall be as follows:
(a) In the Northern zone, as defined in Section 1 hereof, $15~.00
(b)k In the Southern zone, as defined in said Section, $14.00 per
(c) Part-time employees covered by thie provisions of this section
shall be paid at the rate of not less than 37i1/2C per hour in the
North and 35C per hour inl the South.
SEC. 3. This Article establishes a miinimum rate of pay which
shall apply irrespe~ctive of whether an employee is actually compen-
sated on time-rate, piecework, or other basis.
SEC. 4. Female employees performing substantially the same work
as male employees shall receive the same rate of pay as male emn-
ployees. The Clode Authorityr shall within 90 days after the effe~c-
tive date of this Code file with the Admninistrator a description of
all occupations in the Industtry in which both men and~ women are
SjEc. 5. The wage rates of all elployees r~eceiv-in~ nrelr~ than the
minlimuml rates herein prescribed shall be reviewedl and such adjus~t-
ments, if any, mlade therein as are equita~ble, in the light of all the
circumstances, and within sixty (60) rlays after thle e~ffective~ clate
hereof the Code. Authority shall report to the AdmlinIistrautorl the
action take by all members of the Industry und'er this sectioni.
Snc. 6. A1S person whose earning capacity is limited because of nlge
or physical or mental hrandicap ma ny bet empllloyed on light worIk at
a wag~e of not. less than 80%0 of the minimum pre ~cribed~ by this
Code, provided thte S~tate ALuthorit~y or other agency de-igna~ted~ by
the United States Dlepartment, of Laubor shall havre i'.ned'r a cer1-
tificate authorizing his employmentt on alchl ba~i Each member
shall file with th1e Code Authority a list of all such pelrsns em-
ployed by him. The provisio-n of this Section. req~uir~ing a certith-a:lte
of authority shall not. become effective unltil sixrty days~ after the
effective date of this Code.
ARTICLE V--GENERAL LABOR PROV\ISIONSS
SECTION 1. No person undrlc sixteen (16) years of age~ shall be em~-
ploy'ed in the Industry., No person under eightpeen (18) yea:rs of age'
shall be employed at operations or occ~upa~tions which are hanzardc~-
ous in nature or dangerous to health. The Code Authority sha~ll
submit to the Administr~ator within sixty (60) days after the effective
date of thzis Code a list, of such operations or occulpationls. ]In any
State an employer shall be deemed2 to have complied with this prolvi-
sion as to age if he shall have on ~file a certificate or permit duily
signed by the authority in such State emploweredl to issue employment
or age certificates or permits, showing that the employees~ is of thle
SEc. 2. Employees shall have the right to ol~rgnize and barga~:in
collectively through representatives of their own chioosinlg, andl shall
be free from the interference, restraint, or coercion of emnployers of
labor, or their agents, in the designation. of such I~lr~epresentative or
in self-organization or in ot~her concerted activities for the purplose of
collective bargaining or other mutual aid or protection. No emu-
ployee and no one seekringa employment shall be required~ as a condli-
tion of employment to join any company umion or to refra;inl from
oinnnmg, organizmg,! or assisting a labor organnizationl of hih ow1n
choosing. Employees shall comnply with the mlaxinmuml hours of
labor, minimum rates of pay, and other cond-itionis of empilloymnent,
approved or prescribedl by the President.
SEC. 3. NO provision mr this Code shall sup~ers~ed e any StaLte or
Federal law which imposes on employers: mlore str~ingelt r~equlire-
mnents as to age of em~ployTeeis, wages, hours of w-orkl, or as to sa fety,
health, sanitary or general working conditions or insuran~lce or fire
protection, than are imposed by this Code.
SEc. 4. No employer shall reclassify employees or dutie~s of' ocwn~-
pations performed or engage in any others subter.fugIe for. the purpose
of defeating the purposes or provisions of the Act or of thiis Code.
SEc. 5. All employers shall post copies of Articles III, IV, and V
of this Code in conspicuous places accessible to employees.
S~Ec. 6. Every employer shall makl~e reasonable provisions for the
safety and health of his employees at the place and during thle hours
of hei emloment. Standards for safety a~nd health shall be
(6) months after the effective date of this Code.
SEC. 7. NO provision in this Code shall supersede provisions as to
hours, wages, andc conditions of empyloyment which are established for
specific projects by competent governmental auithority acting in
accordance with law, or to terms of employment which are estab-
lished byT labor agreements now in forced, where either the wages are?
hiigher or the hours of labor are shorter, or both, than are those set
forth in this Code.
S~c. 8. The Code Authorityr shall make a study of conditions in the
industry to deternuine the~feasibility of the adoption of a, shorter
wor~kinlg week and shall, within three (3) months after the effective
date of this Code, makre a report of its findings to the Administrator.
The Code Authority shall also submit to t~he Administrator within
six (6) months after the effective date of this Code, a plan for the
stab~ilization and regularization of employment.
SEC. 9. The manufacture or partial manufacture of any product
of the Industry in homes shall be prohibitedl aft.er May 1st,, 1934.
.SECTION 1_. The Code Authtor~ity shall, as soon as practicable, for-
mu~llate a, standrd~r me~thod~ of accounting anl cost~ing for the industry
and submit the same to the Admlinistr~ator. W'hen it shall have been
approvedc by the Administrat~or, every mnember shall use an account-
ing and costing system. which conformrs to the principles of, and is
at least as detailed and complete as, such standard method.
SEc. 2. The Code Authority may from time t~o time determine thiat
an o'pen price plan of selling such product or products of the Indus-
try 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 I~ndustry who manufacture such products not less
th~an 30 days prior to the date so fixed.
SEC. 3. At least ten days prior to such date, every such member
shall file with the Code Authority a schledule of prices and termls of
sale for all such products or, in the alternative, shall be dleemned to
have filled a schedule conforming in respect to price and terms of sale
with th~e schedule at any time on file which states the lowest price
and- the most favorable terms.
SEC. 4. All suIch scheedules shall be in such form as the Code Au-
thority shall prescribe and shall contain all information necessary to
permit any interested person to determine the exact net price per
unit after all discounts or other deductions have been madlce, whether
nprtaining ton a singlee order, a conunitment for future delivery, or a
contract. All such original schedules shall become effective on the
dlate fixed by the Code Authority as provided in Section 2 hereof.
SEC. 5. Ai revised schedule or schedules, or a new schedule or sched-
ules, or a notice of withdrawal of a schedule previously filed, may
be filed by a membr with the Code Authlority at anly time, provided,
however, that, any member who withdraws a schedule without substi-
tuting a new schedule therefore shall be deemed to have filed a sc'hed-
ule conformmig mn respect to price anrd terms of sale wiith. the
schedule at anry time thereafter on file which states the lowest price
and the most favorable terms. Any scheduled~ or notice filled here-
under shall become effective seven (7) days after the dlate of filing,
providede, however, that an increased price mnay become etffezctive. at
such earlier date as the member fLiling the same shall ~fix.
S~EC. 6. The Code Alutho~rity shall promptly supply all members of
the industry whlo manufacture any particular product withn copies of
all schedules, revised schedules, anld notices of writhdllaprawal which~
pertain to such product. Immlediately upon r~eceipt of information
relative to the w~ithrawal of a price for anly product, anyr mlemlber
mnay file notice of withdrawal of his own price for the same pI~rouct
e~ffective as of the same date as the notice of withdl~trawl of sulchl
other member. Immlediately on receipt of information that a sched-
ule then on file has beenl r~evised, or -that a new sc~hedurle has been
filed, any member m-ay file a revised schedule conformiing as to pr~icee
and terms to the schedule of such other member, and effective on the
samle date, or he may notify the C~ode Authority thatlt he adopts as
his own the schedule of such other member. In the Intter event, he
shall be deemed to have filed a Irevised schedule conforming to the
r~evisedl schedule of such other mnembller.
SEC. )7. No such. schedule of prices and terms of sale filed by any
member, or mn effect at any time, shall be such as to permit the sale
of any product at less than the cost ther~eof to such member die-
termined inl the manner provided in Section 11 her~eof, pr~ovidel,
howfever, that any mlembf~er may byr notice to the Code Authority-,
adopt as his own1 a lowerI price filed by another desriglnated member.
Such adoption shall become altomla~tically void upon the w-ith~drawal
or revision upward of the price adopted.
SEC. 8. NO member who shall have ~filed a price, or adopltedl as
his own a price filed bly another member for any p~odluct of the
.Industry, shall sell such product. for less than su~ch price or upon
terms or conditions more favorabsle than stated in such price sc~hed-
ule. ~No member who shall have failed to ~file a price for any pllrodc~t
for whichl the open pr~ic~e plain is in effect, shall sell such product at
a lowrer price or on terms mlore favorable than the lowest price and
most favorable terms stated in any price schedule for such prod~uc~t
then on file.
SEC. 9. The Code Authtor~ityg shall furnisht at cost to anly nronmem-
ber requesting theml, copies of any price schredulles wPhich have been
filed with it. Such price schedules shall be made available to non-
mnembers at the same tim~e that they are sent to mlember~s.
SEC. 10. No member shall sell any product of the Industryy for
which no open price plan is in effect at 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 violate such
SEC. 11. COSt, for the purposes of this Article, shall be determiiined
pursuant to the method of accounting and costing prescribed as
provided in Section 1 hereof as sooni as such miethod is adopted
aind approved, and therefore pursuant to the method emlployedl by
such. member subject to such preliminary rules as the Code Author-
ity shall from time to- time prescribe with the approval of the
Admzin ist rat or.
SEC. 12. FOr the purpose of determining whether Sections 7I and
10 hiereof have been complied w~ith, every member shall upon the
request of the Code Aluthorityv furnish a designated agency of the
Code Authority in respect to closed transactions only, with com-
p'lete in for~mation in regard to any quotation, order, contract, or sale
of a.ny pm~rout, of the Indulst~ry, includ~ing information as to specifi-
cations, quantities, price, conditions of storage, transportation, or
deliveryV termsI of blling, cashI or t~ade discounts allowed, and other
pertinent facts relating to such quotation, contract, or sale.
SEC. 118. NOthling herein contained shall be construed to prevent
thie disposition of distress merchandise required to be sold to liqui-
date a defunct or insolvent business or of discontinued lines, dam-
aged goods or seconds, in such manner at such price and such terms
annd conditions as the Code Authority and the Administrator may
Soc. 14. Nothing; herein contained shall be construed to prevent
the fulfillment of a bona fide contract existingr on the effective date
of this Code.*
ARTICLE VII--R.EPORTS AND STATISTICS
SECTION 1. Each member shall prepare and file with an impartial
agent designated by the Code Authority at such times and in su~ch
manner as it mnay prescribe, such statistics, data, and information
relating to plant capacity, volume of production, volume of sales in
units and dollars, orders received, unfilled orders, stocks on hand,
inventory both raw and finished, number of employees, wage rates,
emlploy'ee earmlngs, ~hours of work, and other matters, as the Code
Authority or the Administrator may from time to time require.
Any or all information so furnished by any member shall be subject
to checking for the purpose of verification by an examination of the
books, accounts, and records of such member by any disinterested
accountant or accountants or other qualified nprson or npersns desig-
na..ed by the Code Authority.
SEa. 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 st~atis-
tics, data, and information of one member shall not be revealed to
another mem~ber. NPio such data or information shall be published
except in combination with other similar data and in such a manner
aj to avoid the disclosure of confidential information. The Code
Authority shall arrange in such manner as it may determine for the
current publication of Indulstry statistics to members.
SEC. 3. T'he COde Authority shall make such reports to t.he Admin-
istr~ator as he may from time to timne r~equire.
SEc. 4. In abddition to information required to be submitted to the
Code AuL~thority) there shall be furnished to Government Agencies
such statistical information as the Admninistrator may emncs
sary for the purposes recited in Section 3 (a) of the A19ct.demncs
See paragraph 2 of order approving this Code.
SlECTION 1. NI~o provisions of this Code shall be so applied as to
permit monopolies or mnonopolis;tic practices, or to elimninate, olppres~s,
or discriminate agninist small enteryrisesi.
ARTICLE IX-RECOMMInlENDATIO SS
SECTION i. 1118 COde Authority may, from time to timelr, present to
the Administrator reconunendatlon~s based on conditions in the In-
dustryv which wlill tend to effectuate thle operation of this Code and
the policy of the Act, and in particular along the following linles:
(a), For the establishment of additional rules of fair trade prac-
ticeforthIndustry and for the mnodificatlion of its tradelt customs
and the enforcement thereof.
(b) For the establishmien t of plansi to equialize pirodcnr tionn w\ith
demand so that the interests of the Industry and thie public mray be
(c) Fror dealing with any other inequal it y that ma~y ar~ise to
endanger the stability of the Industry and of pr~ouctrcion and
(d) For an increase or decr~ease in the numlberl of Industry meml1-
bers of the Code. Authority3 andc/or for a -chnogle inr th~e methods of
choosing such mlemblers.
SEC. 2. FOr thle purpose of assisting the Code Aulthor~ities of the
.Paper Manufacturilng and/or Conver~ting Indust~ries in the adtjust-
mient of all labor dispurtes and labor Compllaintsc arising w~ithlin suc(h
Industries, the Code Authority shall cons~ider the advisnhility of
creating a Joint: Industrial Relations Boar~1d for such Industr~ies and
shall report its r~ecomnmendantio~ns to the Admini trator..
SEC. 3. Recommnendationsn made pursournt to Sections 1 and 2
hereof' when appr~oved by the Admlinistrator shall have the samle
force anld effect as other provisions of this Code.
ARTICLE XIL-TRADE PR~CTIC ES
SIECTION. 1. The following are hereby cocnstituted trade Practices
Sfor' the Industr~y and failure to comply with the provisions thereof
shanll be a violation of this Cod~e.
(a) M\embers of the Industr~y shall not practice deception in regardi
to, that whlich is sold or its sellincr price by false or misleading de-
sc~ription, statement., record, or undisclosed consideration.
(b) Miembers shall refrain from dumnpinlg, extension of stated
credlit, and secret rebates.
(c) M~embers shall not wilfully injure by falsely dlefamling~ a com-
petitor's goods, credit, or ability to per~for~m his contracts.
(d) M~embers shall not w~ilfully induce or attempllt to induce the
breach of a competitor's contract.
(e) No member shall give, permit to be given, or d-ir~ectly offers to
give, anything of value For the purpose of influencing or rewarding
the action of any employee, agent, or representative of another in.
relation to the Ibusiness of the employer of such employee, the
principal of such agent, or the represented party, without the kniowl-
edge of such emllployer, principal, or party. The foregoing provi-
sions shall not be construed to prohibit free and general distribution
of articles commuonly used for advertising except so far as such
articles are actually used for commercial bribery as herein defined.
(f) N~o member of the Industry shall ship goods on consignment
except ulnder circumstances to be defined by the Code Authority,
w~here peculliar circumstai-nces of the IndusEtry' require the practice.
AnrTICLE XI-GENERAL PROV'ISIONS
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 whiich is included in this Industry.
SEC. 2. Anyl~ wTork or process incidental to, and carried on by a
member at his plant as part of the mannufacture of any product of
thei Industry, shall be regarded as a part of this Industry.
SEC. 3. Such of t~he provisions of this Code as are not required to
be included therein by the Act, may wFith the approval of the Admin-
istrator, be modifiedl and elimlinated as changes in circumstance or
experience mayT indicate.
SEc. 4. This Code andi all the provisions thereof are expressly made
subject to the right of thle President, in accordance with the provi-
sions of Section 10 (b) of the Act, from time to time to 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 such code
or any conditions imposed by him upon his approval thereof.
SEc. 5. This Code shall become effective on the second 1\fonday
after the date upon which it shall be approved by the President olf
the United Sta~tes.
A4pprov-ed Code No. 249.
Registry No. 404-1-4)7.
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