Code of fair competition for the motorcycle manufacturing industry as approved on March 17, 1934

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Title:
Code of fair competition for the motorcycle manufacturing industry as approved on March 17, 1934
Portion of title:
Motorcycle manufacturing industry
Physical Description:
p. 141-153 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Motorcycle industry -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

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Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1412-02."
General Note:
"Approved Code No. 340."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004930394
oclc - 643515079
System ID:
AA00007709:00001

Full Text





Approved Code No. 340 Registry No. 1412-02


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


MOTORCYCLE


MANUFACTURING INDUSTRY


AS APPROVED ON MARCH 17, 1934


WE DO OUR PART


UNIV. OF FL LUB.
DOCUMENTS DEPUT

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M---^^--I -------^----- I II

U.S. DEPO~ TORY
__________________________ iS

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934


For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents


Approved Code No. 340


Registry No. 1412-02



























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
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Approved Code No. 340


CODE OF FAIR COMPETITION
FOR THE

MOTORCYCLE MANUFACTURING INDUSTRY

As Approved on March 17, 1934


ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE MOTORCYCLE
MANUFACTURING INDUSTRY
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 16, 1933, for approval of a Code of
Fair Competition for the Motorcycle Manufacturing 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 the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. John.son, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
Approval recommended:
K. M. SIMPSON,
Division Administrator.
WASHINGTON, D.C.,
March 17, 1934.


(141)


47020--425--100-----34















REPORT TO THE PRESIDENT
The PRESIDENT,
The White House.
SmR: The original Code of Fair Competition for the Motorcycle
Manufacturing Industry was submitted on August 24, 1933, by the
Motorcycle Manufacturers Association, an unincorporated member-
ship society organized in 1933, representing 100% of the known mem-
bers of the Industry in volume of production. Several revisions of
the Code were made prior to the public hearing held on December
12. 1933. The Code was revised during the recess of this hearing
and submitted in its final form for approval. Every person who
requested an appearance was properly heard in accordance with
statutory and regulatory requirements.
The Motorcycle Industry includes the manufacture of motorcycles,
motorcycle parts, accessories, sidecars and trailers.
The Motorcycle Industry today is represented by two known mem-
bers, both of whom are members of the Motorcycle Manufacturers
Association. There were six establishments in the Industry in 1931.
Despite, however, the number of establishments which may have
been or are now engaged in the Industry, it may be inferred that
two establishments represent most of the Industry at the present
time, because in 1929 these two establishments sold 88% of all the
products of the Industry.
It is, of course, patent, that the Motorcycle Industry. because of its
competitive relations with the Automobile Industry, is a relatively
declining one. From 1923 to 1929, when the production of the aver-
age industry was expanding rapidly, the production of motorcycles
declined 25%. The Industry apparently has attempted to meet the
competition of the Automobile Industry by improving the quality
and performance of its product rather than by producing a cheaper
product, as is evidenced by the fact that the value of the average
motorcycle changed little during this period.
Since 1929 the Industry has had to face, in addition to an unfavor-
able competitive situation, the diminution of general purchasing
power. As a consequence, sales declined 50%c from 1929 to 1931.
The two establishments report that there was a further decline of
50% in sales from 1931 to 1933.
In 1929, 2,234 workers were engaged in the Industry. From 1929
to the beginning of 1933 employment declined 68%. It is obvious
that the Industry cannot in the near future reemploy all the wage
earners engaged in the Industry in 1929. Payrolls of the Industry
declined 76% from 1929 to 1932. Average hourly earnings
increased 17% under the President's Reemployment Agreement.
The proposed minimum wage and equitable adjustments in the pay
schedules above the minimum, made in conformity with the cus-
tomary interpretation, would have increased hourly earnings 30%.
(142)









143


A 7.5% increase in prices would cover a 30% increase in labor costs.
Hourly earnings of factory workers declined approximately 23%
from June, 1929, to June, 1933. From June, 1933, to October, 1933,
during the interim between which the President's Reemployment
Agreement for a 40 minimum was adopted by the Industry, a 17%
increase in hourly earnings was effected. The increase in weekly
earnings was greater-25%--due to the greater number of hours
worked per week.
ARTICLE I. Purpose.-States the purpose of the Code.
ARTICLE II. Definitions.-Accurately defines specific terms appli-
cable to the Motorcycle Manufacturing In'dustry as used in this Code.
ARTICLE III. Hours.-The maximum hours are limited to forty
hours per week for employees engaged in the processing of products
and labor incident thereto, except that during eight weeks in any
six month period of a calendar year, in order to meet seasonal peak
demands, employees may be permitted to work not more than forty
five hours per week and not more than nine hours in any one day.
Office, salaried and other employees not. covered by the above who
receive less than $35.00 per week, shall not be permitted to work in
excess of an average of forty hours in any one week during any five
week period, and not to exceed forty-eight hours in any one week.
Watchmen shall be permitted to work not more than fifty-six hours
in any one week. Employees engaged in an executive, managerial or
supervisory capacity who receive not less than $35.00 per week are
not subject to any hourly limitations. The maximum hours shall
not apply in cases of emergency repairs or maintenance where the
safety of life or health or the protection of property necessitates
longer hours. No employee shall be permitted to work more than
six days in any seven day period.
ARTICLE IV. Wages.-The minimum wage for employees engaged
in the processing of products or any labor incident thereto is at
the rate of forty cents per hour for any pay period. Female em-
ployees shall be paid the same rate of pay as male employees for
doing the same work or performing the same duties. No person
employed in clerical or office work shall be paid less than at the
rate of $15.00 per week except that office boys and girls may be
paid a minimum of 80% of the established minimum for office
employees. The established minimum rate of pay for work per-
formed in any period shall apply irrespective of whether any em-
ployee is actually compensated on a time rate, piece work or other
basis. Provision is made for the employing of handicapped persons
who shall be paid not less than 80% of the minimum wage scale.
Provision is also made for the adjustment of wages above the mini-
mum fixed in this Code if such has not been made since July 1st,
1933.
ARTICLE V. General Labor Provisions.-Provides that no employer
shall employ any person under 16 years of age and that no person
under 18 years of age shall be employed at operations or occupations
which are hazardous in nature or dangerous to health. This Article
also sets forth the mandatory provision respecting the rights of
employees to organize and bargain collectively. It also provides
for matters having to do with reclassification of employees, stand-
ards for safety and health, the observaiiree of State laws and the








144


posting of complete copies of the code so that they are accessible
to employees.
ARTICLE VI. Administratilon.-Establishes a Code Authority
which shall consist of the Board of Directors of the Motorcycle
Manufacturers Association to be elected by a fair method of selec-
tion so as to be truly representative of the Industry, subject to the
approval of the Administrator. In addition to the Board of Direc-
tors named above there may be one or three representatives, without
vote, and without expense to the Industry, to be appointed by the
Administrator for such terms as he may specify. In addition to
the organization of the Code Authority, the powers and duties
thereof are also outlined in this Article.
ARTICLE VII. Marketing and Trade Practice Rules.-Sets forth
Trade Practices for the Industry.
ARTICLE VIII. Export Trade.-No provision of this Code relating
to prices or terms of selling, shipping or marketing, shall apply to
export trade or sales or shipments for export trade.
ARTICLE IX. Modification.-This Code and all the provisions
thereof are expressly made subject to the right of the President in
accordance with Sub-Section (b) of Section 10 of the Act, to cancel
or modify any order, approval, license, rule or regulation issued under
said Act.
ARTICLE X. llMoopolics.-No provision of this Code shall be so
applied as to permit monopolies or monopolistic practices, or to elim-
inate, oppress or discriminate against small enterprises.
ARTICLE XI. Price Incr eases.-This Article indicates that the
increase in selling price, so far as possible, will be limited to actual
additional increases in seller's costs.
ARTICLE XII. Effective date.-This Code shall become effective
beginning ten days after its approval by the Administrator.
The Deputy Administrator in his final report to me on this Code
having found as herein set forth and on the basis of all the proceed-
ings in this'matter, I find that:
(a) The Code will promote the policies and purposes of Title I
of the Act, including removal of obstructions of the free flow of
interstate and foreign commerce which tend to diminish the amount
thereof and will provide for the general welfare by promoting the
organization of industry for the purpose of cooperative action among
the trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
visions, by eliminating unfair competitive practices, by promoting
the fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and otherwise rehabilitating industry.
(b) Said industry normally employs less than 50,000 employees;
and is not classified by me as a major industry.
(c) The Code as revised complies in all respects with the pertinent
provisions of Title I of the Act, including without limitation sub-
section (a) of Section 3, sub-section (a) of Section 7, and sub-section
(b) of Section 10 thereof; and that the Motorcycle Manufacturers









145

Association was and is an industrial groIup truly representative of
the industry; and that said association imposed and imposes no
inequitable restrictions 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.
For these reasons, therefore, this Code has been approved.
Respectfully,
HUGH S. JOHNSON,
Administrator.
MARCH 17, 1934.














CODE OF FAIR COMPETITION FOR THE MOTORCYCLE
MANUFACTURING INDUSTRY

ARTICLE I-PURPOSES
To effectuate the policies of Title I of the National Industrial
Recovery Act, this Code is established as a Code of Fair Competition
for the Motorcycle Manufacturing Industry and its provisions are
the standards of fair competition for such industry and are binding
upon every member thereof.

ARTICLE II-DEFINITIONS
Wherever used in this Code, or any supplement appertaining
thereto, the terms enumerated in this Article shall have the mean-
ings herein defined unless the context shall otherwise clearly indicate.
SECTION 1. The term "President as used herein shall mean the
President of the United States.
SECTION 2. The term "Act" as used herein shall mean the National
Industrial Recovery Act.
SECTION 3. The term "Administrator as used herein shall mean
the Administrator for Indu.trial Recovery under Title I of said Act.
SECTION 4. The term Motorcycle Manufacturing Industry or
"Industry as used herein means the manufacture of motorcycles,
replacement parts, accessories and other products which are used in
connection with the manufacture or maintenance of motorcycles,
including motorcycles as used for any and all purposes, motorcycle
sidecars, motorcycle trailers and other vehicles of like nature.
SECTION 5. The term "Member of the Industry includes any-
one engaged in the Industry, either as an employer or on his or its
own behalf.
SECTION 6. The term Employee as used herein means and
includes anyone engaged in the Industry in any capacity receiving
compensation for his services irrespective of the nature or method
of payment of such compensation, except, a member of the Industry.
SECTION 7. The term Employer as used herein includes anyone
by whom any such employee is employed or compensated.
SECTION 8. The term "Apprentice" as used herein means an indi-
vidual (usually a minor), bound by indenture executed in compliance
With the laws of the state where the service provided for therein is
to be performed to serve an employer for a term of years at a pre-
determined wage for the period of the indenture in order to learn a
trade, art or craft.
ARTICLE III-HOURS
SECTION 1. Maximum Hours.-No employee shall be permitted
to work in excess of forty (40) hours in any one week or eight (8)
hours in any twenty-four (24) hour period, except as herein other-
wise provided. A normal work day shall not exceed eight (8) hours.
(146)








147


SECTION 2. Hou-rs for Clcical und/ Office Enploy/ees..-No person
employed in clerical or office work shall be permitted to work in
excess of an average of forty (40) hours per week during any five
(5) weeks period nor in excess of forty-eight (48) hours in any one
week. A normal work day shall not exceed eight (8) hours.
SECTION 3. E'jeption. as to Houre .-The limitation as to hours of
labor as specified in Sections 1, 2 and 4 of this Article III shall not
apply to the following:
(a) To production employees, mechanical workers or artisans in
this Industry, who shall not. be employed in excess of forty (40)
hours in any one week nor more than eight (8) hours in any twenty-
four (24) hour period; provided, however, that. during any period in
which a concentrated demand upon any division of the Industry shall
place an unusual and temporary burden for production work upon
its facilities or in which it is nece ary to meet peak seasonal require-
ments or emergencies. but in no event during more than eight (8)
weeks in any six (6) month period, such employee of such division
may be permitted to work not more than forty five (45) hours in
any one week, and not more than nine (9) hours in any twenty
four (24) hour period.
(b) To employees engaged in emergency maintenance, or emer-
gency repair work, involving breakdown or protection of life or
property, provided that in such special cases at least one and one
half times the normal wage rate for any employee so employed
shall be paid for all hours worked in excess of forty (40) hours in
any one week; provided that this overtime provision shall not apply
in case of catastrophes involving loss of life. Such special cases,
however, -hall be reported to the Code Authority.
(c) To outside sales. or sales service men; nor to persons in a
managerial, executive or supervisory capacity who receive not less
than $35.00 per week.
(d) To watchmen, who shall be permitted to work not more than
fifty-six (56) hours in any one week.
(e) There may be a tolerance of 10% additional hours over the
forty (40) hours in any one week for employees engaged in the
preparation, care and maintenance of machinery and production
facilities, and for stock and shipping clerks and truckmen engaged
in-outside delivery and pick-up service.
SECTION 4. Stc.adard W'eek.-No employee, shall be permitted to
work more than six (6) days in any seven (7) day period.
SECTION 5. Employmentt by Severial Employers.-No employer
shall knowingly permit any employee to work for any time, which,
when totalled with that already performed with another employer
or employers exceeds the maximum permitted herein.
ARTICLE IT--WAGES
SECTION 1. J.illniti, TIWagr:.-On and after the effective date, no
employee shall be paid in any pay period less than at the rate of
forty (40) cents per hour, except as herein otherwise provided.
SECTION 2. Piecework Compensafion .--Minimum Wages.
The established minimum rate of pay for the work performed in
any pay period shall apply irrespective of whether an employee is
actually compensated on time rate, piece work, or other basis.








148


SECTION 3. Within sixty (G6i) d;iys from the date of approval of
this Code, an adjiistm;'nlt iof wages above the minimum provided
in this Code shall b? man:de by the inlmmbrs of Industry who have
not heretofore made such adjustment. Such adjustment shall mean
that differentials in compensation between employees receiving the
minimum wage and employees above the minimum existing prior to
the date of approval of this Code shall be maintained; provided,
however, that in no event shall rates of pay be reduced. Each mem-
ber of the Industry shall make a report of such adjustment whether
made prior to or subsequent to the date of approval of this Code to
the Code Authority.
SECTION 4. Female Employees.-Female employees performing
substantially the same work as male employees shall receive the same
rate of pay as male employees.
SECTION 5. Handicapped Persons.-A person whose earning ca-
pacity is limited because of age or physical or mental handicap may
be employed on light work at a wage not below 80% of the minimum
established by this Code, if the employer obtains from the State
Department of Labor a certificate authorizing his employment at
such wages and for such hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons employed by him. Such handicapped persons shall not
constitute more than 5r. of the total number of employees of any
one employer.
SECTION 6. 3M'hllilnu Wage For Clerical and Office Employees.-
No accounting, clerical, office, sales or service employees working
on a weekly basis in any office shall be paid less than at the rate of
fifteen ($15.00) dollars per week; provided, however, that office
boys and girls and messengers may be paid at a rate not less than
80% of such minimum, and provided further that the number of
such boys and girls and messengers so paid shall constitute not more
than 5% of the total number of such employees of any one establish-
ment of any one employer, but in any case such employer shall be
entitled to at least two such employees.
SECTION 7. Apprentices.-Employment of apprentices at rates
of compensation below the minimum provided herein shall be per-
mitted where they are apprenticed to an employer by an indenture
made pursuant to the laws of the state in which such service is to be
performed, under any apprentice system established and maintained
by such employer, provided such indenture agreements are filed with
the Code Authority. Employers shall not be allowed to have appren-
tices in number exceeding 5% of the total number of skilled crafts-
men of their special class, except that each employer shall be entitled
to employ at least one such employee. In no case shall an apprentice
be paid less than the minimum wage provided in Section 1 of Article
IV in states which do not have laws governing apprentices.

ARTICLE V-GENERAL LABOR PROVISIONS
SECTION 1. Child La.bor.-No person under sixteen (16) years of
age shall be employed in the Industry. No person under eighteen
(18) years of age shall be employed at operations or occupations
which are hazardous in nature or dangerous to health. The Code








149


Authority shall submit to the Admiinistrator within sixty (60) days
after the effective date of this Code a list of such operations or
occupations. In any state, an employer shall be deemed to have
complied with this requirement if he has on file a certificate or per-
mit duly signed by the Authority in such state empowered to issue
employment or age certificates or permits showing that the employee
is of the required age.
SECTION 2. Provisions from the Act.-(a) Employees shall have
the right to organize and bargain collectively through representa-
tives 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.
(b) No employee and no one seeking employment shall be required
as a condition of employment, to join any company union or to
refrain from joining, organizing or assisting a labor organization of
his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay and other conditions of employment, approved
or prescribed by the President.
SECTION 3. eerlac.si'fca/ionf of Emnployees.-No employer shall
reclassify employees or duties of occupations performed or engage
in any other subterfuge for the purpose of defeating the purposes or
provisions of the Act or of this Code.
SECTION 4. Standards for Safety and H, alth.-Every employer
shall make reasonable provision for the safety and health of his
employees at the place and during the hours of their employment.
Standards of safety and health for the Industry shall be submitted
to the Administrator within six (6) months after approval of this
Code.
SECTION 5. Sfati Laws.-No provision in this Code shall supersede
any State or Federal Law which imposes on employers more strin-
gent requirements as to age of employees, wages, hours of work, or
as to safety, health, sanitary or general working conditions, or
insurance or fire protection, than are imposed by this Code.
SECTION G. Posting.-All employers shall keep posted complete
copies of this Code and any amendments thereto in conspicuous
places accessible to employees.

ARTICLE VI-ORGANIZATION, POWERS AND DUTIES OF THE CODE
AU TH OJTY
SECTION 1. Organization and Constitution.-A Code Authority
to administer this Code is hereby established and shall consist of
the Board of Directors of the Motorcycle Manufacturers Associa-
tion, which shall be truly representative of the various interests
of the Industry. This Code Authority shall make investigations as
to the functioning and observance of any provisions of this Code
at its own instance or upon complaint of any person affected and
shall report the same to the Administrator.
SECTION 2. In addition to the above membership there may be one
and not more than three members, without vote, and without expense









150


to the Industry, appointed by the Administrator as he may specify
to serve for six month or twelve month terms from the date of
appointment.
SECTION 3. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Author-
ity shall, (1) impose no inequitable restrictions on membership and,
(2) submit to the Administrator true copies of its Articles of Associ-
ation, By-Laws, Rule.s and Regulations and any amendment when
made thereto, together with such information as to membership,
organization and activities as the Administrator may deem necessary
to effectuate the purposes of the Act.
SECTION 4. In order that the Code Authority shall at all times be
truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may prescribe
such hearings as he may deem proper, and thereafter if he shall find
that the Code Authority is not truly representative or does not. in
other respects comply with the provisions of the Act, may require
an appropriate modification in the method of selection of the Code
Authority.
SECTION 5. Members of the Industry shall be entitled to partici-
pate in and share the benefits of the activities of the Code Authority
and to participate in the selection of the members thereof by assent-
ing to and complying with tihe requirements of this Code and sus-
taining their reasonable share of the expenses of its administration.
Such reasonable share of the expenses of administration shall be
determined by the Code Authority, subject to review by the Adminis-
trator, on the basis of volume of business and 'or such other factors
as may be deemed equitable.
SECTION 6. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor
shall this Code be construed to impose upon any member of the Code
Authority any liability in any manner to anyone for an act of any
other member, officer, agent or employee of the Code Authority.
Nor shall this Code be construed to impose upon any member of the
Code Authority exercising reasonable diligence in the conduct of
his duties hereunder, liability to anyone for any act or omission to
act under this Code, except for his own willful misfeasance or
non-feasance.
SECTION 7. Powers and Duties.-Subject to such rules and regula-
tions as may be issued by the Administrator, the Code Authority
shall have the following further powers and duties, the exercise of
which shall be reported to the Administrator and shall be subject
to his right, on review, to disapprove any action taken by the Code
Authority. If the Administrator shall determine that any action of
a Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may require
that .iuch action be suspended to afford an opportunity for investi-
gation of the merits of such action and further consideration by such
Code Authority or agency pending final action which shall not be
effective unless the Administrator approves or unless he shall fail
to disapprove after thirty days' notice to him of intention to proceed
with such action in its original or modified form.








151


(a) To insure the execution of the provisions of this Code, and
provide for the compliance of the Industry with the provisions of
the Act.
(b) To adopt By-Laws, Rules and Regulations for its procedure
and for the administration and enforcement of the Code. The Code
Authority shall promptly report to the Administrator any By-Laws,
Rules or Regulations adopted pursuant to this paragraph.
(c) To obtain from members of the Industry such information and
reports as are required for the administration of the Code, and to
provide for submission by members of such information and reports
as the Administrator may deem necessary for the purposes recited
in Section 3 (a) of the Act, which information and reports shall be
submitted by members to such administrative and/or governmental
agencies as the Administrator may designate, provided that nothing
in this Code shall relieve any member of the Industry of any existing
obligations to furnish reports to any governmental agency. No indi-
vidual report shall be disclosed to any other member of the Industry
or any other party except to such governmental agencies as may be di-
rected by the Administrator. In addition to information required to
be submitted to the Code Authority, there shall be furnished to gov-
ernmental agencies such statistical information as the Administrator
may deem necessary for the purpose recited in Section 3 (a) of the
National Industrial Recovery Act.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
(e) To make recommendations to the Acminiistrator for the coor-
dination of the administration of this Code with such other Codes,
if any, as may be related to the Industry.
(f) To cooperate with the Administrator in regulating the use
of any N.R.A. insignia solely by those members of the Industry who
have assented to, and are complying with this Code.
(g) To recommend to the Administrator further fair trade prac-
tice provisions to govern members of the Industry in their relations
with each other or with other industries and to recommend to the
Administrator measures for industrial planning and production con-
trol, including stabilization of employment.
ARf i.iL VII--TRDE PRACTICE RULES
The following trade practices are declared to constitute unfair
methods of competition between members of the Industry, and no
member of the Industry shall use any of them, either directly or
indirectly, through any officer, agent, or employee. The violation
of any one or more of these, together with such other trade practice
provisions which may be recommended to the Administrator and
approved by him after such notice and hearings as he may prescribe,
shall constitute a violation of this Code.
1. No member of the Industry shall publish advertising (whether
printed, radio, display, or of any other nature), which is misleading









152


or inaccurate in any material particular, nor shall any member in
any way misrepresent any goods (including but without limitation
its use, trade-mark, grade, quality, origin, size, substance, character,
nature, finish, material, content or preparation) or credit terms,
values, policies, services, or the nature or form of the business
conducted.
2. No member of the Industry shall knowingly withhold from or
insert in any quotation or invoice any statement that makes it in-
accurate in any material particular.
3. No member of the Industry shall brand or mark or pack any
goods in any manner which is intended to or does deceive or mislead
purchasers with respect to such goods (including, but without limi-
tation, the brand, grade, quality, quantity, origin, size, substance,
character, nature, finish, material, content or preparation of such
goods).
4. No member of the Industry shall publish advertising which
refers inaccurately in any material particular to any competitors or
their goods, prices, values, credit terms, policies or services.
5. No member of the Industry shall publish or circulate unjustified
or unwarranted threats of legal proceedings which tend to or have
the effect of harassing competitors or intimidating their customers.
Failure to prosecute in due course shall be evidence that any such
threat is unwarranted or unjustified.
6. No member of the Industry shall secretly directly offer or make
any payment or allowance of a rebate, refund, commission, credit,
unearned discount or excess allowance, whether in the form of money
or otherwise, nor shall a member of the Industry secretly offer or
extend to any customer any special service or privilege not extended
to all customers of the same class, for the purpose of influencing
a sale.
7. No member of the Industry shall give, permit to be given, or
directly offer to give, anything of value for the purpose of influenc-
ing or rewarding the action of any employee, agent or representative
of another in relation to the business of the employer of such em-
ployee, the principal of such agent or the represented party, without
the knowledge of such employer, principal or party. This commer-
cial bribery provision shall not be construed to prohibit free and
general distribution of articles commonly used for advertising, except
so far as such articles are actually used for commercial bribery as
hereinabove defined.
8. No member of the Industry shall attempt to induce the breach
of an existing contract between a competitor and his customer or
source of supply; nor shall any such member interfere with or
obstruct the performance of such contractual duties or services.
9. No member of the Industry shall require that the purchase or
lease of any goods be a prerequisite to the purchase or lease of any
other goods.
ARTICLE VIII-EXPORT TRADE
SECTION 1. No provision of this Code relating to prices or terms
of selling, shipping or marketing, shall apply to export trade or
sales or shipments for export trade.









153


ARTICLE IX-MoirIFIC.TION
SECTION 1. This ('ode and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of Sub-section (b) of Section 10, Title I 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 this Code or of any conditions imposed by him upon
such approval.
SECTION 2. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes in circum-
stances. The Code Authority may propose such modifications, and,
upon approval thereof by the Administrator, after such notice and
hearing as lie may prescribe, the same shall become effective as a
part of this Code.
ARTICLE X-1MONOPOLIES
No provision of this Code shall be so applied as to promote monop-
olies or monopolistic practices, or to eliminate, oppress, or discrim-
inate against small enterprises.

AnTICLE XI-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases except such as may be required to meet individual cost should
be delayed, but when made such increases should, so far as possible,
be limited to actual additional increases in the seller's costs.

ARTICLE XII-EFFECTVE DATE
This Code shall become effective beginning ten days after its
approval by the Administrator.
Approved Code No. 340.
Registry No. 1412-02.





UNIVERSITY OF FLORIDA


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