NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
The Code for the Book M\Ianufacturing Industry
in its present form merely refelecs the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approvaljof
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
Registry No. 501-21-03
UNIV. OF FL LIS.
OCcklathsiB DET*E DO OUR PART
For sale by the Superintendent of Documents, Washington, D.C. ----a-
--Price 5 cents
AS SUBMITTED ON SEPTEMBER 6, 1933
BUBM ITI'ED BY
BOOK RIlANUFACTURERS' INSTITUTE
i I \
CODE OF FAIR COMPETITION OF THEE BOO1K
ADOPTED BY THE INDUSTRY IN GENERAL ASSEMlBLY. JULY 12, 1933,
AND APPROVED UNANIMOUSLY' BY THE BOOK MANUFACTURERS'
SECTION 1. (9) Thle bo.ok mianutfacturing inldustryv of the Ulnitedl
States pledg~es itsellf to th~is Code of Fanir Comipetitio ni adlotedl by the
B2ooki Manu fact urlers' In~t itute in order to do its sharlle, during the
period o.f the eme~clrgency. in mnakingr effective the policies of Title I
cof t~he Nationall Indulrstr~ial Rec~overyv Act and in increasing pulr~chls-
ing~ p)ower~ andl the consllequent c~onsumptionn of indrustr~ial and algri-
culltural prod,~uc~t.-. Th~is indu ~try~, thi~rouh the instrumlentality of
th~is Code, accep~ts the~ opp~or~tunt of rehabilitatingr itself by reduc-
inig and~ relieving unlemplloyml~ent, by implr~oving thle wo~rrking~ andl
living standawrds of la~bor,. by minimizingr the h~armiful effccts of~ over-
ca pacity, and by~ el imninat ing comp~etit i e pr~act ices which have prov\edl
destructive of the interests of the public, of employees~, andl of
(b) Thle effective date of th~iu Code shall be _August 15, 19:33. If it
.shall not hav1\e bee~lln approved' by~ the President of the Unitedl Stantes
on, or before August. 1, the effec~t~ive datet shall be two w\eeks after.
the dalte of approval by the President.
(c) This C'od~e is ex>r~essly subject, underI Clausje 10 (b) of the
National Industrial Recovery Act, to the right of the President from.
time t~o timne to cancel or mnodify any order, license, rule or regulation
issued under Title I of the Act, anld to enncel or miodify his appr"ovanl
of this Code.
THE INDUSTRY AND ITs AGENCY
SEC. 2. (n) Thle boo-k mianufactuiring industry p~ledge~d in this
C~ode consists of the plants wTholly or in substantial part engaged in
one or more of the pr1ocesses of book mianuifacture:e Complositionn
und.'or pla~temaking; book prinltinlg; book lith~orarphy;; binding
(edlition, ib~ra~ry,~ and pamphlet); e.ndl prodlucers of such specialties
in volvi n g bookbi ndli ng pl'rocSSs as sulperfinish covers, check and pass~-
books, andl loose-leaf covers.
(b) Because~ t~he book mnanuifacturing industry is distinct from all
other branches of printing, it assumies complete responsibility for
self-regulation undc-er this C'ode.
Although the various processes in edition book; manufacturing may
be carried on in different plants, printing and bindingr of books cannot
be. treated as separate industries, because compt~ition increasingly
covers the complete book; because plants specializing in onie process
undertake to do or sell all, and because price quotations are so sihuffed
between the different processes, for competitive strategy, that unfair
competition could not be prevented in any one process unless all were
subject to single and simultaneous regulation. Further, the number
of book publishing markets is few and manufacturers compete out-
side of the territories in which their plants are: located, so that no
plan of regulation based on local markets, such as for general print-
ing, would be adaptable. Library binding consituts an speblc sialze
service, chiefly for public a~nd institutional lbaisadpbi col
where books, because of unusual service, require rebinding and where
periodicals are bound for convenient. access and safe preservation.
The bulk of the output of edition book manufacturers is economni-
cally distinct from general commercial printing in that it is not pro
duced for advertising purposes but for resale as a comimodity. It is
also economically distinct from newspapers and magazines in that
it is nonp~eriodic and, in general, is produced for customers who de-
pend on its resale for revenue and not upon its use as an advertising
medium. Library binding is primarily a service and not. a comi-
(c) This Code shall therefore be t~he sole instrument governing all
transactions involved in and arising from book manufacture as de-
fined; but plants engaged in different work, in addition to book
ma nu factu re, may govern these di fferent operate ions by any other cod~e.
Further, insofar' as this Code may involve labor employed in the
printing departments of edition and library book manufacturing
similar to labor employed in other branches of printing, this Code
shall be in harmony with the codes of other pr~intinga industries.
(d) The sole agencies for the administration of this Code shall be
the National Industrial Recovery Board! or other body or person
designated by t~he President of the ULnited States, and the Book
Manufacturers' Institute and its properly appointed agents. Th~e
Book MIanufacturers' Institute may delegate such functions as it
may deem proper to regional or dlivisional associations or to cooperat-
ing associations andt their executives.
(e) This agency, the Book Mianufactur~ers'; Institute! imposes
no inequitable restrictions on admission to membership and is
truly representative of the book manufacturing industry and its
SEc. 3.-(a) In1 accord with Section 7 (a) of the National Indus-
trial Recovrery Acct, all employers in the book manufacturing industry
pledge themselves as a part and conditions of this Code:.
"'(1) That employees shall have the right. to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint., or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection; (2) that
no employee and no one seeking employment shall be required as a
condition of employment to join any company umaon or to refrain
from joining, organizing, or assisting a labor organization of his
own choosing: a~nd (3) that employers shall comply with the maxi-
mum hours of labor, minimum rates of pay, and other conditions
of employment, approved or prescribed by the President."
It is clearly understood that the foregoing paragraphs do not
impair in any particular the constitutional rights of the employee
and employer to bargain individually or collective as~a may be
mutually satisfactory to them; nor does it impair the Joint right of
employer and employee to operate an open shop.
Nothing in this Code is to prevent the selection, retention, and
advancement of employees on the basis of their individual merit,
without regard to their affiliation or nonaffiliation with any labor
(b) On and after the effective date, the minimum wage to be paid
by employers in the book manufacturing industry to unskilledt work-
ers anid apprentices for the first year of their apprenticeship~ shall
be at the rate of $0.37%~~ per hourl for mlen and $0.30 per' hourl for
(c) On and after the effective date, no employer inrt this industry
shall operate on a schedule of labor for his employees exceedingr
forty hours per week, except in the case of repair crews, offEice and
supervisory staff', shippers, and messengers. No plant operated
by alny epinloyer in this induistryr sha~ll be operaRt.ed more t~han eigihty
hours per week. In case of necessity, arising fromt on emnergency
or from the character of the work, or from the inability to obtain
competent labor, perm~issioni may be granted by the Institute Aid-
ministrator, upon proper showing being made, to exceed the fore-
going limitation, provided such permission shall be granted only
upon such conditions imposed by the Institute Admlinistratbor as will
make certain that no employee will work more than 1,040 hours in
any six months.
(d) On and after the effective date, employers in this industry
shall not employ any minor under the age of sixteen years.
(e) Except in the case of minimum wages, labor scales and labor
declassification shall be predicated~ upon the cost of living for equiva-
lent living standards for employees of thie same classification in
the va rious localities.
(f) Whenever necessaryv, mlodifientions in these provisions rela.t-
ing to labor shall be made to keep them in Rarmony with simIilar
provisions in sucrh codes for other prmntmg indtustries as mnay be
adopted nationally, but such modifications shall not apply toemn-
ployees in any edition and library binding departments.
(ga) WFhenever it is found that importation of products of the
book manufacturing industry affects adversely the maintenance of
standards under this Code, this Institute shall so informi t'he Presi-
dent of the Unitedl States and request such action from- the Govern-
ment as m~ay be necessary to remedy such conditions.
SEC. 4. (R) NO provision in this Code may be adminilsteredl in
such a way as to tend to promoted monopolies or to eliminate Or op-
press or discrimmnate against any enterprise in this industry w~hich~
is working in harmony with the provisions of this Code, or in any
industry to which it sells or from which it buys.
(b) The follorwing shall be considered unsouind or unfair trade
practirpcs within the! mea.ning of the National Industrial Recovery
Act, and shall be subject, first to such penalties as mnay be p~rescribed
by thle Booke Manufacturers' Institute, andt second, to the penalties
prescr~ibedl by the Act:
1. Selling below cost (as dletermnined by methods approved by the
Federal Ad m inistrator) .
F2. Offer~ing or allowingr any buyer any c-oncessions, bonuses, re-
bates, subsyidies, or privileges of any kinl, w~hether in the form of
m1on~ey, services. or otherwise, except as miay b~e n-uthorizedl by the
;3. Extending~ credit terms in excess of those which thle Institute
shall herea after establish.
4. Offering commercial bribes in any form, including~ excessive
en terta i nm en t.
5. Deceiving a customers by making promises imlpossible~ of fulfill-
ment or' not intendled to be kept. in order to get business.
6. Usinga materials, methods of manufacture. andt quality of work-
manship inferior to those specified, without thle knowledge and con-
sent of the customer.
7. Makinga false derogatory statements, inl any~ form. about com-
petitors or their products or methods.
8. Failing or refusing to aff'ordl equal1 terms, pr1ices,;rl and ladvatages
to all buyers similarlly situated. and p~ermlitting uinfair discriminat-
tionn to be madle in mnerchandlising terms, prices or p~ractices.
9. K~nowingly quoting a price to or necepting the w~ork from n
customer who is found by the Institute Adlministrantor to be guilty
of deliberately trying to cause manufacturers to break dowrn any
statndards of the industry or provisions of this Codle. unItil a hearing
has been held.
10. Hiring away~ employees, tr~ansferring materials, plates, or
semifinished products in poor condition, or hamperinga the opera-
tions of a. competitor in anyr other way.
(c) Provision shall be made immediately after the effective date
for a comp~rehensive study~ of costs. Those p~lants having sound cost-
finding systemis shall so arrange their reports as to fur~nishi compa-
rable information as t~o costs. Those plants without adequate cost-
finding systems shall be required to organize their cost accounting on
a basis satisfactory to the Institute Administrator, within a time to
be determined by him.
ADMTINISTRATION OF THIS CODE
SEc. 5. (a) Upon the approval of this Code by the 'Industrial
Recovery Board, every provision of this Code shall apply without
exception or discrimiination to all in the industry, including every
officer andl employee of every p~lant.
(b) Addcitionls to, deletions from, andl miodificationls of this Code
shall be miade by majority vote of the Institute, as prescribed in its
By-Laws, subject. to the approval of thle properly consititulted G~overn-
(c) On behalf of the Institute, as agency~ of administration under
Section 2(tl) of this Code, the adlministration of this Code shall be
the function of the Aldministrator of the Institute, appointed as
prescribed by the By-Lawis of the Institute, and such deputies and
staff as he may select.
(d) De~tailedl regulations necessary to th~ pr~operi administ~ti rato of
the C'ode shIall be p~e~repred by the Admninistutcrat of thet IIwtitulte,
w~ithl the approval of the Board~ of Dir'ectors o~f thie Instituite.
(e) Suchi addltitional pr~ovisio.nss ndit subsidiary~ regulaltionls as mayi
be necessary may be adopjtedt byr and for anv divisio~nal or reg~io-nal
group of the injustry, buat no 'such addiitional p~rov'isionl or reganl-
tion mnay be such as to tend to affect adv~er'sely~ any other dlivisi~nall
or r~egional1 group.
(f) The Board of Directors, the Executive Committee, or such
inidividunks or s~ubea~mmlittee as flth Boarld mov1\ select, and the In-
stituite Admlinist rator,. shlall constitute the Ccontinuing med~iumll for
cooperatlolln ithl thle G~oveinme nt a ut horit ies inI thei admnin ist ration
o~f this Code.
(g)j Neith~er the Inlstitutte Admrllni.str~ator1 nor~l anyl memlberl of his
staff mnay hav-e any! interestt, financial or o:thierwise, dlirect or indlirtct,
in the business of any book manufacturer.
(h) For purp'ose of admrlinistr~ation of this Codle, whether spe~-
cifically requestedl by thet Govern mentl or not, the Institute Adminis-
tr~ator shall require anl and~ all in the in~dustry to report such in-
for~mationl as mlay be prIescribedl by the Act, the By~-La~ws of the
Institu~tte, or thle reguallatory~ control set up1 by the Institute, andc failure
to do so pr~ompltly andi accurately shall constitute n violation of th7is
(i) InI the event of any co-mplaint and or dispute and/or for the
purpose of verifying any information furniishedl to the Institute
A~dministrlator, andl subject. to the approval of the Board of Directors,
the Institute Admninistrator, his deputies, and his staff shall at all
times have the rigt~ to ex(amine the books of necount, recor~ds, anid
files of' all in the indtustry; but no information obtained shall be
revealed to anyone bu~t a miember of the admlinistrative staff or the
proper Gover~nmentt authorities.
(j) Specifically, the Institute Adlministrantor is emlpowTered to mIaket
a survey of the product~ive capacity of each plant and a census of
In the case of replacement equipmnent,. the Institute Adminir.trantor
shall have the. power t~o arrange for the srcrapping or other disposal
of the equipment. displaced.
In the case of additional equipment, he shall have the power to de-
termine whether or not. the prlopo~sedl equipment is essential to the
proper operation of the plant, pr~ovided, howeier, that the mnembe r
affected may have recourse t.o an appeal to an arb'litRation ~oardrC
selected by himself and the Institute Admlinlistrator ,..
(k) Violations of this Code, complaints. investigations, and p~enal-
ties, shall be dealt w-ith according t~o procedure to be established in
the Admninistrativ~e Regrulations and lor the Industriai l Recovery! Act.
RELATION W\ITH PURCHAS\ERS AND TENDORS
,SEC. 0). (8.) This Inc-ustlvry PcogniZes the trurth that its waell-beringi
is inseparably tied up w~ith the well-being o-f thocse~ indusrieti s which
buyl from it and which sel- to it.. Every~ effort wTill be madel to thle
end that no provision of this Codle shall be ndministeredc in any way\
which might be contrary? to the sound economic r~elations be'tween
this industry~ and those ot~her~s.
UNIVERSITY OF FLORIDA
6 3 1262 08855 7383
(b) The Board of Directors shall set up such committees as may be
necessary to maintain continuing cooperative contact and to under-
t~ake joint action with similar committees representing associations of
customers and vendors. Such committees shall formulate trade cus-
toms. When those customs are approved by the Administrator of
the Institute and a majority of the Board of Directors they shall
become part of this Code, with the full force thereof.
(c) The Institute shall set up such bureaus as may be needed to
guide the granting of credit, and all customers shall be required to
file w~ith these bureaus such information as may be deemed necessary,
before any member shall enter into any transaction involving credit
with such proposed customer, after the effective date of this Code.
It shall be a violation of this Code to encourage irresponsible pub-
lishers or other customers, by granting price concessions? terms in
excess of the established standard, or indulging in any trade practice
that will be detrimental to the established publishers or customers.
(d) During: this emergency period and during the life of this
Code, it shall be improper for a book manufacturer to give a firm
quotation, and it shall be a violation of this Code for a book manu-
facturer to offer a quo0tation1 without a covering clause protecting
himn against increased costs due t~o increased costs of materials and
such increased labor costs as may result from any provision of this