NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
CORSET STEEL INDUSTRY
AS SUBMITTED ON AUGUST 30, 1933
REGISTRY No. 1118 10
The Code for the Corset Steel Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
-? W D OUR PART
GOVERNMENT PRINTING OFFICE
s irm sl Lbyle Baperrialadesl of Decaments. W~ashi~ngtnD.C. - Price 5 cnt :
CODE OF 1FAI~R COMPETITION FOR THE-E CORSET STIEIEL
To effectuate thle policy of Title I of thet~ National Indlust~rial
Recovery Act, the followmlg pr~ovisiorns are establishled as a code
of fair competition for th cor~set steel industry.
SEcTIONc 1. Th term "' Corset Steel Industry "' a used1 herein is
defined to mnean ther manunfacturerl of ~ir~es for ulse as stay~s in corsets
and othler articles of apparel, aind the manufacture of neccessor~ies such
as fasteners and clasps used1 in such apparel.
SCEC. 2. Thle term M~emlber o the Indcusjtry means and includes
any person, firm, association, or cor~poration engaged mn the; manu-
facture of wires for use as stays in corsets and( other articles of
apparel, and the manufacture~ of accessories such as fasteners and
clasps used in such ap5parel.
SEC. 3. The term employees means and includes all persons
employed in t~he industry.
SEc. 4. It is of the essence of the code that all members of the
industry who shall compl3 with, the provisions of the code shall be
entitled to participate in Its benefits upon the terms and conditions
set forth in the code.
Sm. 5. Any member of the industry is eligible for membership in
SEC. f>. A~ny member of the industry desiring to become a member
of te coe ma do o signing and delivering to thte secretary
letter substantially inthfomstorhiSheleBheo
SEc. 7. To the extent required or permitted by or under the Iprovi-
sions of Title I of the National Industrial Recovery Act, the provisions
of the code shall apply to and be binding upon. every member of the
industry, whether or not such member shall be a member of the code.
To the extent that it shall be necessary or proper in order to effectu-
ate the purpose of the cole, the termn "( member of the codle "" wherever
used in the code, shall be deemed to mean a member of the industry,
but no member of the industry who shall nlot also be a member of the
code shall be entitled to vote at. any meeting of members of thle codle,
or to any other right, power, or privilege provided in the code for
the members thereof.
SEc. 8. The rules and regulations in respect of meetings of mem-
bers of the code are set forth in Schedule A hereto annexed.
867" 33 toI
ARTICLE 11- AGESS AND Houns or LABOR
SEC. 9. AJ~s required by Sec. 7 (a) of Title I of the National Indus-
trial Rfecovery Act the following provisions are conditions of th~is
Code: (1) T~ihat employees shall have the right to organize and
bar~gain collcc.tivel thlroughl I~~1~i~represntties of t~heir own choosing,
and shall be free from the inttelrfer~ence, retrain t, or coercion of
emplooyers of labor, or their agfents, in the des~ignaltion of such r~epre-
sentat~iv'es or in self-organization or in other concerted neti~vities for
thre purpos"'e of collecivf~e barllgining or other mnutual aid or prote~c-
tion; (2) that no employee and no one seeking employment shall b~e
required as a condition of employment to join any compllany union
or to reframn from jommig, or~ganizmng, or assisting a labor organi-
zation of his own choosing; and (3) that employers shall comply
wiith the maximum hours of labor, minimum raRte.- of pay, and other
conditions of employment, approved or pre.scribed by thne Pr1esident."z
SEc. 10. On and. after the effective date of this code, and until
changed~r as hereinafter provided, the minimum wage that shalll be
paid to employees shall be as follows:
Per hour P
Boys and girls from 16 to 18_-. .--~------~---~---. ----------------------- 3 $13. 00
Men and women~._..------~~-~~~-~-.-~---~- ------------------------- 35 14. 00
Learners ....- .........--~--~-- --- -- -- -- -- -- . 25 10.00
(The period of apprenticeship for learners not to exceed 6 weeks.)
The foregoing schedule of wages shall applly to all able-bodliedl
pers'conls nown empllloy'ed in the industry, and to all persons who may
hereafter enter the emuploy0f of the indusltr'Y. There are, however, a~t
present in the employ ofsome or all of the members 1personS in-
capable by reasonc~l o~f age or infirmity of doring a full day's work,
who a~re being emnployedl at light labor, suited to their co~ndition,
ast rates below the above. Iti eivdta provision should be
madt-'e for the continuance of h mlyeto uhpros h
would o~therw~ise necessarily be rephneed. .It is therefore proposedl
that such persons maay be continued in their emnplotyment at rates
bfelow? those: herein p~~~rescribed, provided that th~e numlber of persons
so c~ontinlued in their employment shall not exc~eed' ten (1051~) p~er-
cent of the total number of employees, anld that this provision shall
in no event apply to new emrploy\ees.
SEC. 11l. The h10HPs Of In81300I for enployees in thze industry shall be
Ac~corntingr, clerical, office, service, andc sales employees (except
olutside salesmnll); factoryT and mlechanical w~orkers~; 40 hourst per
week. No worker to be employed more than eight~ hours per day.
Prodt~uctivie manchin~ery not to be opleranted molre thann two shifts of
forty hours per week.
SEC'. 219. NiO member of the industry shall emnploy any person undler
sixteen years of age. ;, i
ARTICLE I17-PRODUCTION AND $.1LES
SEc. 1.3. The corset steel industry has for a long period been de-
moralized by competitive price cutting which hias driven prices below
the reasonable cost of p>rodluction. Suchl practices have not only
made it impossible for emnployers to operate at a reasonable profit
but have driven wages dlown and caused overprodulction and unem-
ployment. Thle interests both of employers anid emp~loyees requriree
that merchandise be soldl at. prices that will realize to, the producer
the fair cost of production plus a r~easonable p~rofit. It is therefore
declared to be an unfair practice for any members of the industry to
fail to maintain such prices as will return the fair cost of prodduction1
plus a reasonable profit.
SEc. 14. (A) Each member of the code shall, within ten days after
the effective date of the code, tile with the chairman a list showing
the prices of all his products, andi fromt time to time after thle expira-
tion of such ten days such mlemberr shiall file new, amended, or sup-
plemental lists of prices covering any change in such prices. Each
such list shall state the dlate upon which it shall become effective,
which date shall be not less than tenl dlas after thle date of filing
such list with the chairman. The chairman shall immediately dis-
tribute copies of such lists to all mlemblers of the code.
(B~) The chairman shall hanve power, on his ownl initiative or on
compllaint of any member of the code, to investigate the prices set
forth in any list filed as hereinabove provided, and to suspend suc
price list in whole or in parit. pndnring suIch investigation. Fior the
purpose of such investigation the chiairmani may require the member
filing such list to furnish suchl information concerning the cost of
manufacture and sale as the chairman shanll deem necessary and
proper for such purpose.
(C) If the chairman, after in~vestigatbion, shall consider that any
prices contained in such list are excessive. he mnay revise such prices
downwnardl. If the chairman after investiga~tio n shall consider that
anly prices contained inl such list miay result. inl unfair competition
in the industry by reason of inadlequa~cy, having r~egard to thle fair
cost of production and sale, plus a reasonable profit, he miay require
the member of the code filing such list to file a complete or partial
substitute list, as the case mnay be, showing fair prices, suchi substi-
tute list to be filed within t~en dlays after written r~equesit by the
chairman. If the member shall fail to file such substitute list, or
shall file a substitute list containing prices which the chairman shall
consider to be unfair, the chairmiani shall, as to the p~ric~es considleredl
by him to be unfair, suspend such substitute list, giving notice of
such action to t~he member filing suchl list, andl shall appoint a
committee of three members of thle code to determine the fair prices
which should be charged by the member filing such list, having
regard to the cost of mnanufacture and sale, together with a reason-
able profit. For the purpose of such dete~rmlination, t~he committee
shall have power to require the member filing such substitute list
to furnish such information concerning the cost of manufacture
and sale of any products therein listedl as thle committee shall deem
necessary and proper. The committee shall report its findings to
the chairman, together with its recommendations as to the fair prices
which should be charged byr the member filing such substitute list.
The chairman mnay revise downward any price. so determined by
the committee. The chal7irm~ a n shall give nrotice of such findings and
r~eco nuner~ndt ions of the c~ommliitt ee, as approved or revisedi by him,
to thle member filing such substitutelit and simnultaneouslye to
the other members of the code, and the list of recommnendel prices,
as determined by the committee and approved or revised by the
chanirmai~ n, shall take thne pinee of the substitute list ther~etofore filed
by such member, or of the part thereof theretofore suspended by
the chairman, such recommended prices, as approved or revised by
the chairman, to tnlet effect on a date fixed by the chairman.
(D) NI\o member orf thne code shall sell any plrod~uct1 at a pric~e or on
term!s a'nd conditions more favorable to the purchaser than71 the list
price for such product con~ltainedl in the latest effective list filed by
such member with the chairman, as providedc in Subd. (A) of this
section, and which list has not been suspended as provided in Subdts.
(B) and (C) of this section. A list of prices which has I~bee sus-
pended in part shall be dleemedj to be effective, as of the date thereinr
named, as to the part not suspended. A list of prices .r~elcommnended
by a committee and approved or revised by the cha~irmann, pursua~nt
to the provisions of Subd. (C) of this section, shall, as to the prices
therein contained, have the same force and effect as if sulchl list had
been filed by the membnler in respect to whose p?roduc~ts suc~h prices
have been so determined, and for the purposes of this Subd. (D)
shall be det~leme to have beenl filed by such member.
SEc. 15. To effectuante the purpose of the National Industrial RIe-
covery Act in respect of mafintaiinig a. reasonable balance between
production a~nd cc-n-umpltion, and elim~ination of overprodu~ction as
a factor in unemployment, price cutting, and other destructiv-e co~m-
petitive practices, and to provide a period of stabilization in the
industry, no member of the industry shall increase his production,
comp~utedl in terms of sales prices, beyyond the same apprloximatet~
portion of the total production of the industry, compun~ltedl in terlms
of sales prices, as was substantially borne by his average production
during the calendar years 1931 and 1932 to the average total pro-
duction of the industry during said years; provided, however, that
the initial production quotas hekreby established shall expire on the
31st da~y of December 1933, unless at or prior or subsequent to said
date the members of the code shall, by unanimous affirmative vot~e
of all of the members of the code, agree to extendl- such qulotas or to
establish revised: quotas; in, wchichl case such quotas or rev~ised. quotas,
as so agreed to, shall be effective and binding upon all members of
the code. It is h~ereb~y dleclar~ed to be an unfair practice for any
member of the code to depart from the initial quotas her~einabove
established, or from any extendedl or revised quotas adopted as hlere-
SEC. 16. All-1 sales shall be subject to the following terms, and any
violation of suchl tferms shall be deemed an unfair practice, namely:
(1) Freight: Fireight is pr~epaid to Aur~ora, Ill. 3For shipmnents
beyondl Aurora, the buyer is allowed the freight to Auroam, Ill.
(2) Terms of sale are three percent -(3%)~ 10th ie.o.m. or tw
percentt e~o.m., ten (10) days, sixty (60) davs extra. pyb oNo
futer discount for cash. Interest at the legal rate rs pybeo
delinquent accounts. .
(3) Increase of price: If the cost or expense of the seller in manu-
facturing these goods is increased because of any fedlernl, tate, or
municipal laws, ordinances or regulations, or because of any regula-
tions adopted b~y any trade association or group by which the seller
is bound, voluntarily or involuntarily, imiposing any tax, or gov~ern-
ing working hours or compensation of Ilabor, than the price of thle
goods after the effective date of any such law, ordinance, or regula-
tion shall be increased in an amount sufficient to cov-er such add~itional
cost to the seller, the increase to be pyabale at thie samie timie as the
original price. Deliveries may be reduced as to amount and/,or
extended as to time in proportion to any reduction of production
resulting* frmn sucih la.ws, regulations, or ordlinances.
(4) The seller shall not be responsible for delay or nonl-delivery
due to strikes, labor troubles, or any other events b~eyond the seller's
control, affecting production or tranlsportationl facilities. In the
event that dleliveryv of all thle goods cannot be mnade byv rensoin of arny~
of the foregoinga causes, the seller shall agree to make partial delivery,
proportionate to its production and total of orders on hand.
(5) Alteration of Terms: The seller reserves th~e right to alter thte
terms of credit, during execution of any contract, granting to thle
buyer any equivalent in discount.
ARTICLE V'-UNram PRACTICES
SEC. Ijl. FOr all purposes of thie codle, the follow-ing described acts
shall constitute unfair practices:
(1) Granting any rebate from the contract price of giood~s sold
or any discount for quantity purchases (except as required by exist-
ing contract, which shall not be extended or renewed).
(2) Canceling in whole or in part or permitting the cancellation
in whole or in part of any contract of sale of any product except
for a, f i r consideration.
(3) Dissemination, publishing, or circulation of any false or mis-
leading information relative to any product or price for any product
of any member of the code, or thle credit standing raiiyo n
member thereof to perform any work or manufcueoprde
any product, or to the conditions of employment among the em-
ployees of any member thereof.
(4) Inducmyg or attempting to induce by any means any party
to a contract with a member of the code to violate such contract.
(5) MIaking or giving to any purchaser of any product any guar-
antee or protection in any form against decline in thle market price
of such product.
(6) SCtatingi in the invoice of any product as the date thereof. a
date later than th~e date of the shipinent of suchl product, or includt-
ing in any invoice any product shipped on a date earlier than the
date of such invoice.
(7) Effecting adjustments of claims with purchasers in such mian-
ner as to grant secret allowances, secret rebates, or secret concessions.
(8) Any violation of any other provision of the code, whether or
not therein expressed to be such, or failing or refusing to furnish to
the chairman, or to any committee appointed under this code, any
information or reports which the chairman or the committee is di-
rected or authorized to obtain, or using or employing any practice
not hlerein d-escr~ibed as an unfair practices: which the cha~irmnla of thle
industry shall have declared to be a practice that- woud1.1 tend to,
defeat. the policy of Title I of, the National Indlustr~ial Recovery Act
and, therlefore, an ulnfair practice, alnd. of which determination or
declaration the chairman. shall have given notice to, the mrem~ber~s of
ARTICLE VI-AkDMII NI?; TRATION`)h OF THE CODE
SEc. 18. The adifniitratioon of this code shall be under th-Te d~irec-
tion of the chairman of the indusllt ry. It shall be the duty of th~e
chairman to use his best efforts to effectuate oblserv\ancec by the
indutlry~lS of the declared policy of the National Industrial Re~cover~y
~Act, andl to keep the Presidentl informed as to such obse~trvanc.
SEC. 10. T~het cha~irmalnl shall have all the powers and duties con-
ferrIdc up~on. him by this code, and1 genral~llly all such o~thler p~owers
and. dut-ies, not expressly herein otherwise co~nfcl1erre as mayT be
~necessary or proper to enabltle hnim fully to admninister thne code and
effectuate its pin-pos~ce. Subject to limlitation by thne members of the
C~odet as to the total annual expend~iture~t for administrative pm-p'oses,
he shall have~ power from time to time to appoint and remove and to
fix the compcllnatio~n for such a~c~counltanlt, attor'neys, experts and-
other emp~loyees'i as he mal~y deem~ll ntcessarllly or proper for the purpose
of administering the code.
SEc. 20O. The chairman shall have power1 from time to time to re-
quire each, memrnber of the codle to furnish to him, or to such agetnt. as
he may- designate,, information and written reports conce~rningl tlhe
production, co ,ts, orders, shiipmntst~ sales prices, and un~lledl borders
of each rlcin~-embe, and the hours of labor, ra;tes of pay, and other con-
ditions of employmI~re nt,, an( such other information as he ma deemczl
necessary or proper in order to effectuate the purpose~ of tecode
and the policy of Title I of the National Industrial Recovery\ A-ct.
He may r-equire that any such information be fur~nished per1ioiic~ally
and be sworn to or o.thlerwnise certifiedl or nu~th-entica;ted..
SEc. 21. The chairman shall, from. timel to time, present, to the
Adincllirict ra~torl recommend~t ions basied~ on condlit ions nai they develop
in the industry, and, in, particular along the following lines:
(1) Recolumenantl;ltions as to th~e requl~i rt'lement by the Administrat-
torr of such further reports from personsll engag-ed in the induslltry? of
stati.cliceul information and keep~ing of uniform n~c~ounlts asl maly be
r~equ.iredl to itecur1e the proper o~b erv\ancle of this co(de and to pr~omlote
the proper h~lancingr of production and con-suinp1-tion andl the stabili-
zartionr of the industry and employmelcnt.
(2) Reconsenlllrldations fo~r the setting up orf a service bjuretaul for
nrcounll~ting,, credit, and others purposes as may be nlece~ssary or dle-
sirable to promote the r'tqllequirements; of'this code.
(3) X-iReconunen('ldations for resist r t ionl and licenses for p~ersonsi
engbaged! in, the indu~lstryS, and for the instnallatiron of pr1odluctivee
mrach~ineryy excptli the rept~lac~rlemen of exisjtingr machilnery..
(4) Rec~onunendatlat ions for changes in o r exemp~tionis from the pro-
visions of this code as to w~orking hours of malc~hinery,; whichl w~ill
tend to pr~eserv\e thze balance of productive activity writhl conlsumlption
requii remeltnt.s, so that th~e interests of the industry and thle public mayt3~
bre p'op:erl'y seredl.
(5) Recomm~endations for th~e making of requirements by thre
AQdminist~rator as to practices by persons engagedl in the inldustry
as to mepthodsl andl conditions of tradngte ain ndrpoto
prices wh~ichi may be appropriate to avoid discrimination to p~romnote
the stabilization of the industry, and to prevent and eliminate unfair
andr destructive comzpetitive prices and practices.
(ii) Recommlendations for regulating the diisposal of distress mer-
chandl'ise in a way to secure the protection of the ownBfers and to
pro'mote soundl and2 stable conditions in the industry.
(7i) Recommendations as to thre mlakingr availalble to the suppliers
of credit to those engaged in the industry of information regarding
the ter'm: of, andl actuall fulllnctionig of any or all of the provisions
of this code, thie conditions of the industry. anid regar~ding the op-
erations of anyv and all of the members of the indurstryr covered by
this code to the end that during thle period of emergency available'
credit may be adapted to the needs of such industry considered as a
whole and to the needs of the small as well as thle large units.
Such recommendations of the chairman shall be submitted to tlhe
members of the code at. a meeting, the notice of w-hichl shall state the
purirnpos of thep meeting, namely, to consider recommendations to be
submitted to the Admninistrator. Such recommendations proposed
by the chairman, if approved by the members at the said meeting,
shall be hsubmitted by the chairman to the Administrator, and, wFhen
approved by the Administrator, shall have th~e same force and effect
as any other provlision of this code.
SEc. 22. In addition to such other reports as the chairman miay
fr~om time to time require, each member shall furnish duly certified.
reports in substance as follows, and in such form as mayp be pre-
scribed by the chairman:
(1) A~ rep)ort, to be filed w-ithini ten dalys after thle effective d~ate
of this codle. setting forth thte unlfilled orderss and par~tly filledl orders
which each member has on handi, with the nmne anid addrliess of each
cuistomner, the date of the order, the cus~tomer''s ordler number, th~e
go~ods ordler~ed and quantities thiereof, andl thle selling price andl other
terms of sale.
(") W~eekly reports, showing p,roductioni in terms11 of the commonly
uisedl units;. stocks onl hand, both sold and ulnsold, s~ipm'ents against
orders pirev-iously reportedly andc new\T borders. giving th~e dletails of
ne~w borders. as provided in subdivision (1) of this section.
(:3) AI weekly report shlowing thle netual hiours~ worked ~y the
varliousg occupational groupIs of employees andl the mlinimlumm weekly
rates of wFages as: to each suich wroup.
SEC. Bi. Failure Of anV memn~er of th~e codle p~romlptl to furniish
reports andl information requiiredl by th~e cod~e or by the chairman
substantially in the form pr~escr~ibedi shall constituted a violation of
AhRTICLE VII -INVESTIGATIONS AND lRBITRA~TION
SEC. o-4. The chairman may, on his own motion, and shall, on
complaint in wFriting of any member, investigate the business prac-
tices of any member w-ith a view to dletermniing whether thie provi-
sions of this code are being observed. In aid of suich investigation,
the chairman may require reports from members andl the production
of books and documents r~elevant to such inquiry,~ includring sales
and order books, customners' ledgers, contracts of sale, price quota-
tions, and records r~elating to production, costs of production candl
sales. Any and all information furnnished to the chairman by anly
member of the code shall be subject to checking for the purpose of
verification by an exa~mination of the books, accounts, and records of
sulch member by any accounltanlt or other person designated by the
chairman. The cost of eachl such examination shall be treatedt as an
expense of administering the code: Provided, however, that if upon
such examination ainy such information shall, in the opinion of the
ch~nirmannl, be. shown to have been incorr1ect in any material respect,
such Co(st shall be paid bjy the member who fur~nishied such
SEC. 25. In addition to atny and all other remedcies providled in
the National Industrial Recovery ~Act or in this code for the en-
forcement thereoc-f, wFPheneverl any member shall make complaint ini
writing to the chairman that he has been dalmaged thltrough anly net
or conduct of another member, in violation of the provisions of this
codle, the chairman shall give notice in writing of suchr co~lupinint
to the member complained aga~;int. andJ shall proceed3 to dete~prmine~
such complaint. For the purpose of such de~term'llina~tionll the chair-
man shall act as an ar~bitranto, and shall have the jur~is.1ition and
power conferr1edl upon arbitrators by the arbitrationl law of the
State of New Y~ork. I~f the chairman finds that the ecomlplainantn has
been damaged~l, he may awsiard damag es, and judgmllent upon his de--
termination may be enteredl, as providled' for in the ar~bitraftionl law
and the civil practice act of the State of New York.
SEc. 26. The c~hair~mn shall not be d~eemetd to be disquanlifiedl in
relation to any matter affecting the adinistratioo n of this code, or
in relation to any matter, dispute, or controversy wFhich is the sub-
ject of arbitration by the chanilrmnn under the provisio-ns of this
code, by reason. of anly interest as stockho~~llder, dlirec'tor', oflicerl, agent,
or employee of any member of th~e code. The chairman may, in -his
discretion, designate in writing an alternate chairmanr l to serve in
relation, to anly matter assigned to him by thne chairman, and may
from time to time, in his discretion revoke such designation ~an~d
designate another alternate.
ARTICLE VIII PENALTIES ANiD DAMAGES
SEIc. 27. Recognizing that the violation by any mnembe~r of this
code of anly of the provisions of Article IV of this codec~ will disrupt
thne normal course of fair competition in. the indurst~ry and cause-
ser~ious damage to other members of the code and that it will be
impossible in many cases fairly to ass~ess the annmunt of such dlamag~e-
to any member of the codle, it is hereby aIgreedi by and- amnongr all
mIembers~ of the code that in addl.itionl to any and all remedies pro-
vided in the Niational Industrial Recovery Act or in this codle for
the enfor~ceelcnt, th~ereof, each member of the code who shall violate-
any p'rov-i ion of this code shall pay to the chanirman, in trust, as
and for liquidanted damagnes, a sum. not exsceedling the total of t~he
net profit upon such sale or sales in violation of the provisions of`
this code, plus an additional ten percent of the sales price or total
SEc. 28. Except in cases for which liquidated damages are fixed'
in the code, and in cases whichl shall g~ive rise to claims or actions
in favor of one or more mnember~s of the code for damages suffered
by such member or mnembe's, the chlairmann shanll have pow-er fromi
timie to time to establish the amount of liquidated damalnges payabnlel
by any member of thle co~de uponi the conuini~sionl by such~ member
of anly act constituting~ an unfair practice ulndetr the c~ode, anld a list
of thle amounts so fixedl shallI froml timle to timie be, mailedl to thie
members. Uponl thle conuinissio ni by any m Iemiber of th~e codec of any
act conIstitutingp an unfair practices,, such member shatll btecomle liable.
to pay to the cha~irman, in trust, liquidated damages in thle amlount
at thle timei establish~ed by thle chairmian for such unfair practice.
SEC. 2O. rlll nimOrnts SO paid tO or collectedq by the chaiirmllan uinder
this article shall be held and~ disp~osed~ of b-y him, or by such agenlt
as he shall designate. as par~t of the funds collectedl under this~ code,
and eachi mnember of the code not guilty~ of thle unfair practice in
respect of which any such amount shal h1ave been paid~ or collected
shall be cr~edited with his pro-ranta share of such amount on account
of any and all assessments otherr thann damalges for violation of any
provision of this codle) dlue or to become due from such~ mlembler under
the code. Alll rights of an. "person who sharll at any time be chlair-
man in respect of any amounts whlich shall be payable to him under
this article, or under ainy other provision of this code, shanll pass
to and become vested in his successor in office uponi the appointment
of such successor.
SEc.30 A(~nything in the cocde to the contrary notwithstanding,
the chairman many: in his idciscetion. channge the m~ethodl of allocation
of the amounts paid to or collected by him as penalties andl dama~ges,
and distribute such amounts, or any part thereof, in such mannnier
as he miay determine to be in the interest of justice and equity in any
particular case or cases, having regar~d to the purposes of this codle;
and the chairman may also, In his d'iscr~etion. waive any liablilityr
for liquidated damages~ ;imnpose by or puirsunlnt to any pr~oisionl of
the code for any violation of any provision thereof, if in, his discre-
tion he shall decide that such violation was innocentiv made and
that the collection of such damages will not to any. material extent
tend to effectuate the policy of Title I of the National Indcustrial
SEc. 31. Each member of the code by becoming such member agrees
with every other member thereof that the code constitutes a valid
and bindingi contract by and among all members of: thle code, and
that, in addition to all penalties and liabilities imposed by statute,
any violation of any provision of the code by any member thlereof
shall constitute a breach of such contract and shall subject the memi-
ber guilty of such violations to liabilityr for liquidated dlamages pur-
suant to the provisions of the code. Each member of thle code by
becoming such member thereby assigns, transfers, and delivers to the
chairman, in trust., all rights and causes of action whatsoever wvhichl
shall thereafter accrue to such member under the code for such
liquidated damages by reason of any violation of the code by any
other member thereof, and thereby designates and appoinits the
chairman as such individual the true and lawful attorney in fact of
such member to demand, sue for, collect, and receipt for any and all
amounts which shall be owing to such member inr respect of any such
right or enuset of action, and to compromise, settle, sa;tisfy, andi dis-
charget anyv such right or cause of action, all in the name of such
nIemberl~~l or in the name of the chail~rman, indlividlually, as he shall
ARTICLE IX;-GENERAL PROVISIONS
\ SE(. 32. To defray the exese~llt of administration of this code, as-
PCecllnent' may be mad~e fcrom time to time by the chlairmanill, which
a~srser-inents shall be prorated among~l the members~l~ in. proportion to
thleir voting power; provided, however, that the total as e-~.mentst
in any~ one yearnl shllll not excreedl the amount voted by the memlberls
as expenses of administration of the code in any budget ad'op~ted~ byc
SEC. 33. Ev-erly member of the code shall, if prscr1ibedl by thle
chairman,,, with the approval of a majority inl number and votingc
strenth!cl of the members of the code, use a uniform and stana~ned
method of amou,~ntin g..
SEc. 34. Nothingr cc-ntainedl' in the code shall1 be dleemned to con-
stitute the members of the code partners for any purpose. None of
the members of the code shall be liable in any manner to any one for
any act of anly other member of the code or for any act of the chair-
mnan or anly other officer, agent, or employee appointed under the code.
Neither the chairmallln nor any other officer, ngenlt. or employee ap-
pointed under the code shall be liable to anyone for any action or
omlissionl to act under the code, except for his willful misfensance
or nonfeasance. NSothing contained in the code shall be deemned to
cconfrll~l upon' anyone" other than a mll11embe o~f the code any right,
claim, or demallndr whatsoever aganins-t any member of the code or
against any m~emnber holding office under t~he code, or agarinlst any
agent or employee appointed under the code.
SIEc. 35. The President may, from. time to time, cancel or mlod~ify
any order, approval, license, rule, or regulation issued under Title ~X
of the National Industrial Recover~y Act.
SEC. 36. Such of the provisions ofi this code? as are not I~~reqired~ to
be incllnded therein by the National Inldus~trial Recovery Act mlay,
with the approvl~c\ n of the President, be mlod'ifiedl or elinilnatedl if it
appears' that the public, need-s are not being served thlereby, and as
changes in circumstances or experience mllay indliente. Te hl
remai~ni in effect ulnle-s and until so modlified' or elimniinated. or until
the expiration of the act.
SEc. 37. A~s soon as members of the industryy w\ho wouldl, if th~en
members~r of the cod-e, have thne right to cast at least sev'ent.y'-five p~er-
ecnt in number and votingr strength of all the votes that7 might h~e
cast at a meeting of the membler~s of the code, if all lihemb~ers of thte
industry wer~e thlen members of the code and present at such~ meeting,
shall sign and deIiver to a c~hairman n or temnporarr y chairmann eleected
by them letters subs~tantially in, the forml set for~t.h in Sc~hedule Bl~
hereto annlexed, thle chairman or temporary chairman so elected by
thiem shall submit this code to the President, pulrsuant to the provi-
Isions of Title. I of the National Industrial Recoveryi Act and, upon
approval of the code by the President, it shall constitute a bindlinga
contract by and amlongr thle memb~lers of: thle code, and shall be and
b~ecomle e~ffec~tive as of the date of such apprlov~al by the Precside~nt.
RULES.AND REGULATIONS IN RESPECT OF RIlEETINGS AND
SECO.TII i. IAleeting~rS olf members of tlle c0110 Shll;1 be held on call of thze
chanirmn,~u (In nort less than twtiO day!S' written notic~e. alicifgiing th time amIr
pla~e o~f tle mueeting, andc~ sha;ll alsol be calledc by~a the chairman on written
request orf any three (3) ulemblers..
SEC'. ". EXSCelit iS otllerw\ise sipeeiic-all y provniltler ill the codet. RO~ 1187 RIOting
of niembehrs oif the endte. a nIn~julrity, hathl inl Iunumer of mirlember alndl numbrlrr
of votes, s~hall be necessary to the ielection of any off~icer. or the dectermin~ination of
any question. Thle votinrg power of each mlembe~r shall be such p~roportion
of ten thcuanud vctess as theu quota o~f p~rodluction1 at thle lilre allnttedl to. .w~lll
niembler healrs to the aggrrgate oif thle qluotas oif produlctionl at thet tune allo~tete
to all of thie uternlbers of thle code.l If no, p~~lcrldtionl quotas~ bhll: ait the timue
be effec~ti\e and~ in force, theni and1 in thalt e'enlT thie voitinMg lro\lvr shanll 1.0
equitablly ullocaltedl and~ distribu~tedl amoln~ thle muembers o.f thie code byJ thel
StC. 3. At all me~etings of memIIJ~ber of thle Codre. an11! mnt~llier m1ay\ vcite by'
proxy? inl writing, dulyI? executed by such member andit tiledl withl ther Cha~irman~l.
SeC. -1. Thle preslc~e at any1~ meerting,~ in. person or lay proxy~s, of a majolrity-
both in Iunumber o.f membllers anid number of voi~tes, shall conlrstituite a gunlruntll.
SEc. .3'. Th~e chairmanr shanll be elected by a major~it-!, both in number olf
mlemblers~ andl nlumbelr of votles, and~ shall hohlll officej for one ?ear, or until his
succYssor is elec~ted.l
SEC. G;. AI ll ntic(s, dlemandls, or `reluestsi req1:uil're or permittt ed to be given
to or madeC uponl any1 nienihel~r of thle cod~ie shll be sulticienltl\- give~n if iuniiledl
postage prepaid. add~respsedl to, such member, at thle addresc~s of such member on
file w\ithl the chanirman.r
$EC '2. Theset rules ;Unal rep~~rlhitions~ may lIe amnded.~lc~l Irevold or a7ddedt to
by ain affirmative vote of two thirds (%4) in number of members and number
o~f votes, at a11~ny meeitin called~ upon,~ wcrittent notice o~f not less than two (2)
days.r thle notice of whichi meertingL shall sptcify thle uIllnlendinnt, revicatio~n,
oir addlition proposed for co~nsileration at sulch meeting.
FORMI OF LIETTlCER OF ASSENT TO THEi CODE -
Ukairman (or Temporary Ch~ainrman) of
Members of the Corsetf-Steel Inducstry/.
DEAR SmR: The undersigned desiring to become a member of the code of fair
competition for the corset-steel industry, hereby assents to all of thze provisions
of said code, and effective as of the date on which the code shall have been
approved by the President of the United States of America, as thereinz provoidezd.
or as of the date (if subsequent to such approval) on wrich this letter shall
hav~e been delivered, by the signing and delivery of this letter becomes a member
of the code, and thereby agrees with every person, firm, association, and corpo-
ration, who shall then be or thereafter become a member of the code, that the
code shall constitute a valid and binding contract between the undersigned and
all such other members.
The address of the undersigned, until written notice of a change of such
address shall be filed with the chairman, shall be as set forth in this letter.
Very truly yours,
President or SecretarU.
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