Approved Code No. 115
Registry No. 329--02
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of F'oreign
and Domestic Commerce.
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Seattle, Wa~sh.: 809 Federal Building.
CODE O]F FAIR COMfPETITION FOR THE VOOD PLUs hoDUSnTR
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16i, 1933, for my approval of a Code
of Fair Comnpetition for the W~ood Plug Industry, and hearings hav-
ing been held thereon and the Administrator having rendered his
:report containing an analysis of the said code of fair competition,
together with his recommendations and find'ingas with respects thereto,
and the ALdministr~ator having found that the said code of fair coma-
petition com~plies in all respects with the pertinent provisions of
title I of said act and that the requirements of clauses (1) and (2) of
subsection (a) of section 3 of the said act have been met:
NOW, TH[EREEFORE, I, F'rankrlin D. Roosevelt, Presidenlt of the
United States, pursuant to the authority vested in me by title I of
the National In~dustrial ~Recovery Act, approved June 16, 1933, and
ot~herwFise, do adopt and approve the report and recommendations,
and findings of the Administrator and do order that the said Code
of Fair Competition. be and it is hereby approved.
FRANKLIN D. ROOSEVTELT.
THE VHITE HOUSE,
November 14, _1933.
Hucui S. JoaNsoN,
The Whiite House.
SIR: This is a report on the Code of Fair Competition for the
Wood Plug Industry in the United States, the hearing being con-
ducted in Washington,n D.C., October 25, 1933, in accordance with
the provisions of the Nationa'l Industrial Recovery Act.
PROVISIO0NS ON HOURS AND WAGES
The maximum hours provided by the code for factory employees
will be 40 per week and 8 per day. Those employed as shipping
clerks, foremen, and engineers are allowed a tolerance of 8 hours
in any one week. Watchmen are allowed a tolerance of 16 hours
in any one week< but are restricted to 8 hours in any 24-hour period,
thus providing for this service by two shifts. Those employed in
maintenance and repair worki are allowed a tolerance of 8 hours in
any one week with one and one third the normal wage being paid
for time in excess of 40 hours in any one week. The above limita-
tions of hours do not. apply to employees engaged in supervisory
work receiving more than $35.00 per week.
The minimum wage rate for labor in the South will be 27 cents
per hour until one year from the effective date of this code and 30
cents per hour thereafter. The minimum wage r~at~e in the North
will be 32%~ cents per hour until one year from the effective date of
this code and 35 cents per hour thereafter. It is provided that
wages shall be paid in cash or by negotiable check to avoid the use
of company scrip which has been practiced by a few members of
this ind-ust ry. It. is also provided that an employee shall not be re-
quired as a condition of employment to live in a house ownedl by
his employer nor to trade at t~he store operated by his employer.
No distinction in wagae rates will be made between male and female
employees doing the sme type of work. Equitable adjustment of
wage rates above t~he minimum provided will be made and reported
to the Administr~ator. Handicapped persons may be employed, but
their number shall not be in excess of 10 percent of the total number
of employees in any plant and at a wage rate of not less than 80
percent of the minimum wage rate provided by the code.
The terms of employment for those engaged in accounting, cleri-
cal, and office wor~k are in accordance with the President's Reemploy-
ment Agreemnent. Weekly compensation of all employees as of June
16, 1933, higher than the miinimnum will not be reduced because of
any change in hours provided in the code.
The minimum age provided in this code is 16 years, but in hazard-
ous occupations this age limit is increased to 18 years.
ECONOMIIC EFFECT OF THE CODE
This relatively small industry ma~nufacturese thte woodecn plugs
andl cores which paper manufacturers use for paper rolls. There are
less than 20 members of this industry and appr~oximaztely 500 ~workers
are emnploye~d. Approximnately half of the employees are engaged as
wroods or logging crews to procure the raw material for this opera-
tion which cannot be secured f~romn lumber dealers due to required
size variations. The other half of the employees are engaged in
factory operations. Mrost of this labor is unskrilled and interchange-
It is estimnated~ by the industryy that the provisions of this code
regarding mlaximum hours will increase employment approximately
20 percent and that the income of emlnoyees will be increased be-
tween 25 percent and 40 percent. The w~age scale has been exceed-
inlgly low due to a chaotic condition of ruinous competition in this
industry during recent years which represellnttives of the industry
believe will be largely corrected by the adoption of this code.
Iln arriving at the terms expressed in the code, the industry hras
shrown its cooperation in complying with the spirit of the act anld
look-s upon. the proposed code of fair competition as a necessity to the
The Administrator finds that:
(8,) The code as recommended complies in all respects wFith the
per~tinlent provisions of title I of the act, including, without limnita-
tionl, subsection (a) of section. 7 and subsection (b) of sections 10
thereof ; and that
(b) The applicant group imposes no inequitable restrictions on
admission to membership therein and is trulyQ representative~ of the
wood plug industry; and thrat
(c) The code as recommended is not designed to promote monop-
olies or to eliminate or oppress small enterprises and will not operate
to discriminate against them, and will tend to effectuate the policy of
Title I of the National Industrial. REecovery Act.
It is recommlnen~ded, therefore, that this code be approved.
IIUGcH S. JOHNSON,
Add m~in istrator.
Digilized by lhe Iniierneli ArchlVee
1n 20l11 wiih fundllng from
Uniiversily of Florida. George A. Smathers Libraries willh suipport from LYRASIS and the Sloan Foundation
hilp: 'w~W.arChlve.orgS detalls codeojllalrcompel6575unal
CODE OF FAIR COMPETITION FOR TH~E: WOOD ]PLUG
To effectuate thne policies of Title I: of the ~Nat~ional Industrial
Recovery Act, the following provisions are submnit~ted as a Code of
Fair Competition for the Wood Plug Industry, anld upon approval
by the President shall be the standard of fair competition. for such
iridustry and shall be binding upon every member thereof.
.ARTICLE II -DIEFINTTONS
The term industry as used herein includes the manufacture
and sale by manufacturers of woodlen plugs and cores for paper rolls,
and such branches or subdivisions thereof as mray from. time to time
be included under thle provisions of this Code by the~ President after
such notice and hearing as he may prescribe.
The term employee as used herein includes anyone engaged in
the industry in any capacity receiving compensation for his services,
irrespective of the nature or method of payment of such, compen-
The term "L emnployer "' as used herein includes anyone by whom
any such employee is compensated or employed.
The term "L member of the industry includes anon egaged in
the industry as abovTe defined, either as an employers or in his own
Thle term "(Association as used herein means the Wood Plug
fa nu facturers Association.
The terms Pr~esident ", '"Act ", and "A~dministrator as usedl
herein shall mean, respectively, the President of the Unlited States,
the National Industr~ial Recovery AcLt, and the A~dministrator of
The term South as ulsed her~ein shall include the states of
Virginia, West Virginia, Kentucky, Arkansas, Oklahomao, Texas, and
all the territoryT of the United States south and east of the states
The t~erml North as used herein shall include all the territory
of the United States not included in the South.
AQRrxcLE III -1UOCRS
1. No employee shall be permitted to work in excess of forty (40)
hours in any one w~eek or eight (8) hours in any tw8enty-four (24)
hour period, except as hereinbeforee stated:
(a) Shipping clerks, firemen, and engineers, who shall not be
permitted to workr in excess of nine and one half (94/2) hours in.
any twenty-four (24) hour period or forty-eight (48) hours in any
(b) W~atchmen, whlo shall not be permitted to work more than
eight (8) hours in any~ twenty-four (24) hour period, who shall
receive one and one third times their normal rate for all hours in
excess of forty-eight (48) hours in any one weekr.
(c) Employees in a managerial or executive capacity who now
receive miore than $35.00 per w~eek.
2. The maximum hours fixed in the foregoinga section shall not
apply to ain employee on maintenance or repair work who shall not
be permitted to work; more than forty-eight (48) hours in any one
wee and who shall be paid at least one and one third (1Va/) times
their normal rate for all hours worked in excess of fortyv (40) hours
in any one week<.
3. No employer shall knowingly engage any employee for any time
which w~hen totaled writh that already performed with another em-
ployer or employers exceeds the maximum hiereinabove provided.
1. No emnployee in the South shall be paid at less than the rate of
twenityr-seven (27)~ cents per hour duiringc the period which shall con-
tinue for one year from the date on which this Code shall become
effective, nor less than the rate of thirty (30) cents per hour there-
after while this Code shall be in effect; no employee in the North
shall be paid at less than the rate of t~hirty-two and one half (321, )
cents per hour during the period which shall continue for one year
from the date on which this Code shall become effective, nor less than
the rate of thirty-five (35) cents per hour thereafter while this Code
shall be in effect.
2. An empnloyer shall make payment of all wages due in lawful
currency or by negotiable check, therefore payable on demand.
Wages shall be paid at thle end of each wFork week. These wages
shall be exempt from any payments for pensions, insurance, or sick
benefits other th~an those voluntarily paid by the wage earners.
The emnployer or his agents shall accept no rebates directly or in-
directly on such wages nor grivec anythl~ing of value or extend favors
to any person for the purpose of influencing rates of wages or the
working conditions of employees.
3. Accounting, clerical, or office employees shall not be paid less
than the rate of $15.00 per week in any city of 500,000 population
or overy, or in the immediate trade area of such city, and not less than
$14.50 per week in any city between 100,000 and 5~00,000 population
or in the immediate trade area of such city, and not less than $14.00
per week in any city between 10,000 and 100,000 or in the immediate
trade. area of such city, and not less than $12.00 per week in any city
under 10,000 population. The census figures for the latest Federal
census shall be the basis for this provision.
4. Thiis Article establishes minimum rates of pay, regardless of
whether an employee is compensated on a time-rate, piecework, or
5. Female employees performing substantially the same work as
miale employees shall receive the same rates of pay as male employees.
6. The weekly compensation of all employees as of June 16, 1933,
in excess of th~e minimum wage hereinabove specified shall not be
reduced, notwithstanding that the hours of work of any such em-
ploy'ee mnay be reduced. The wages of all employees receiving more
than the mlinimumn rates hlerein prescribed shial be equitably adj ust~ed
and the differentials between. employees receiving mn excess of the
minimum hereinl prescribed existing prior to the approval of this
Code shall b~e maintained. Such adjustments shall be reported to
thle Codle Author~ity and to the Administrator.
7. A p~erson whose earning capacity is limited because of ag0e or
physical or mental handlicap may be emnployed on light work at a
wagre below th~e minimum established by this Code if the employer
obtains from the State authority desigonated by the Ulnitedl States
Department of Labor a, certificate authorizing his employment at
such wages and for such hours as shall be stated in the certificate.
Each emlploy~er shall file with the Code Authority a, list of all such
persons employed by him. The number of such employees sharll not
be in excess of 10 percent of the total number of employees engaged
by any member of the Industry at atny onle time, nor shall such em-
ployees be paid at less than 80 percent of the minimrJum wage rate
8. Employees other than maintenance or supervisory men, or those
necessary to protect the property, shall not be required, as a condition
of employment, to live in quarters rentedl from the employer.
9. No employee shall be required, as a condition of employment,
to trade at the store of the emnployer.
ACIRTICLE V-I--GENERAL Lanono PROV'ISIONS
1. No person under sixteen (16) years of age shall be employed
in the Industry, nor anyone under eighteen (18) years of age at
operations or occupations hazardous in nature or detrimental to
health. The Code Authority shall submit to the Administrator be-
fore January 30, 19342, a list of such occupations. Tn any State an
employer shall bje deemed to have complied with this provision if
he shall have on file a certificate or permit duly issued by the au-
thority in such St~ate empowered to issue employmrtent or age certifi-
catesr or permits, sihowing that the employee is of the required age.
2. Employees shall have the right to organize and bargain col-
lectively 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 any other concerted activities for the pur-
pose of collective bargaining or other mutual aid or protection.
3. No employee and no one seeking employment shall be required
as a. condititm of employment to join any company uim2n or to re-
frain from jommig, organizing, or assistmng na lor orgamnzat~ion of
his own choosing.
4. Employers shall comply with the maximum hours of labor
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
5. Within each State no provision of this Code shall supersede
any laws of such State imposing more stringent requirements on
employers regulating the age of employees, wages, hours of work,
or health, fire, or general working conditions than under this Code.
6. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the
7. Each employer shall post in conspicuous and accessible places
full copies of this Code.
ARTICLE VI ADMINISTRATION
To effectuate further thle policies of the Act a, Code Authority
is hereby constituted to cooperate with the Administrator in the
administration of this Code.
1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of five (5) individuals
or such other number as may be atpproved from time to time by the
Administrator, to be selected as hereinafter set forth. The Adminis-
trator, in his discretion, may appoint from one to three additional
members without vote to represent the administration or such groups
or interests as mayv be agreed upon. Members appointed by the Ad-
mninistrator shall serve for terms of from six months to one year
provided, however, that the terms of such members shall not expire
at the same time. Such members shall be given notice of and may
attend all meetings of the Code Authority.
(b) Three members of the Code Authority shall be selected by
the Associaltion fromt among its membership. The Association not
later than 10 days after the approval of this Code shall notify the
members of the Ilndustry who are nonmecmbers of the Association
that on a specified day not later, than 20 days after such notice shall
have been given two members of the Code Authority will be selected
by nonmembers of the Aissociat~ion. Such notice shall specify that
such nonmembers mayr be selected by nonmlembers of the Association
either present or by proxyI or by letter ballot.
(c) The Association shall: (1) I~mpose no inequitable restrictions
on membership, and (2) submit to the administrator true copies of
its articles of association, bylaws, regulations, and any amendments
when mande thereto, together with such other information as to mem-
bership, organization, and activities as the Administrator mnay deem
necessaryn~ to effectuate the purposes of the Act.
(d) In1 order that the Code Authority shall at all times be truly
representative of the Industry~ and in other respects comply with the
pr'ovisions of the Act, the Administrator may provide such hearings
as he may deem proper; and thereafter if he shall find that the Code
Authority is not truly repr~esentative or does not. inl other respects
comply writh the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authority.
2. The Code Authiority shall have the following duties and powers
to the extent permitted by the Act, subject to the right of the Admin-
istrator on review to disapprove or modify any action taken by the
(a) WVith a view to informiing thle President, and the Admnin-
istrator as th observance of this Code, and as to whether the Indus-
try is taking appropriate steps to effectuate the declared policy of
the Act, each member of the Induistry shall furnish duly certified
reports in thle formn required by the Code Authorityr on wages, hours,
conditions of employment, and such oter matters a~s may be perti-
nent to the administration of this Code. The Code Author~ity shall
make such reports to the Administrator as he maay dilreict. ALll such
reports shall beheld in strict confidence except when they shall be
required by the Administrator or the Code Authorit~y in connection
with a violation of the provisions of this Code.
(b) The Code Authority may from time to time present to the
Administrator recommendations based on conditions in the Industry
as they may develop, which will tend to effectuate the operation of
the provisions of this Code. -
(c) The Code Authorit~y is also set up to cooperate with the Ad-
ministrat~or in making investigations as to the functioning and
observance of any provisions of this Code, at its own instance. or on
request of the Administrator, or on complaint of any person affected,
and to report the same to t~he Administrator.
(d) The Code Authority shall coordinate the Administration of
this Code with such codes, if any, as may affect this Industr~y or
any related industry, wFith~ a view to promoting joint and harmonious
action upon matters of common interest.
(e) All members of the Industry shall be entitled to participate
in and share the benefits of the activities of the Code Author~ity
and to participate in the selection of the members thereof. Mem-
bers who thus participate in or share the benefits shall sustain their
reasonable share of the expenses of its administration. The r~eason-
able share of the expenses shall be administered by the Code Au-
thority, subject to review byI t~he Administrator, on the basis of
volume of business1C3 and/Ior suIch other factors as may be deemed equit-
able to be taken into consideration.
;3. In addition to the information required to be submitted to the
Code Authority, there shall be furnished to government agencies
by the members of the Industry such statistical information as the
Administrator may deemn necessary for the purposes r~ecit~ed in Sec-
tion 3 (a) of Title I of the Act.
ARTICLE VII--TRADE PRACTICES
1. The Code ~Author~ity shall formulat6e or cause to be formulated
a uniform accounting sy~steml which~shall be adaptable to cost-ac-
counting procedure and to the business of the Indlustry. rSuch plan
shall specifyv the factors which shall be included in determining the
costs to eachl member of t.he Industry. Upon approval by the ALdmin-
istrator of such a system of cost accounting for the Industry com-
plete advice c~oncer~ninga it shall be distributed by the Code Authority
to all mlembe~rs of the Industry. Therea~fter no member of the Indus-
try shall sell the products of the Industry at such prices or up~on such
terms and conditions of sale as will resulting th~e purcha.ser's payine
for such product less thaln the cost thereof to the seller, determined
in accordance with t~he aforesaid system of cost accounting, except
to meet competition. Within twenty days after the approval of this
Code each member of t~he Industryr shall publish t~o the trade and
file with the Code Authority price list for all products of thle indus-
try sold or offered for sale by him, together withn the discounts, if
any, allowed therefrom, and fixed terms of payment. Revised price
UNIVERSITY OF FLORIDA
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6 3 1262 08855 6575
lists or revised discounts or terms and conditions of sale may be filed
and published from time to time thereafter by any member of the
Industry, provided, however, that such revision shall be published
and filed with the Code Authority at least five days in advance of
the effective date thereof. No member of the Industry shall sell or
offer for sale any products of the Industry at prices lower than the
prices noted in his price list or on more favorable terms and condi-
t~ions of sale than the terms and conditions of sale previously pub-
lished and filed by such member with the Code Authority in accord-
ance withl the foregoing provisions and in effect at the time of such
2. The following practices constitute unfair methodss of competi-
tion and are prohibited:
(a) Directly or indirectly to give or permit to be given, or offer
to give, money or anything of value to agents, employees, or repre-
sentatives of customers or prospective customers, or to agents, em-
ployees, or representatives of competitors' customers or prospective
customers, without the knowledge of their employers or principals,
as an inducement to influence their employers or principals to pur-
chase or contract to purchase from the makers of such gift or offer,
or to influence such employers or principals to refrain from dealing
or contracting to deal with competitors.
(b) The secret payment or allowance of rebates, refunds, com-
missions, or unearnedl discounts, whether in the form of money or
otherwise, or secretly extending to certain purchasers special services
or privileges not extended to all purchasers under like terms and
ARTICLE V~II I-ODIFICATION
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
visions of subsection (b) of Section 10 of the National Industrial
Recovery Act, from time to time to cancel or modify any order, ap-
provazl, license, rule, or regulation issued under Title I of said Act
and specifically, but without limitation, to the right of the President
to cancel or modify his approval of this Code or any conditions im-
posed by him upon his approval thereof.
2. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances, such
modification to be based upon application to the Administrator and
such notice of hearing as he shall specify, and to become effective on
approval of the President.
ARTICLE IX 1WONOPOLIES
No provision of this Code shall be so applied as to permit mo-
nopolies or monopolistic practices, or to eliminate, oppress, or
discriminate against small enterprise.
ARTICLE X--EFFECTIVE ABTE
This Code shall be effective ten days after its approval by the