Code of fair competition for the nickel and nickel alloys industry as approved on May 24, 1934

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Title:
Code of fair competition for the nickel and nickel alloys industry as approved on May 24, 1934
Physical Description:
p. 381-396 : ; 23 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:
Nickel -- Law and legislation -- United States   ( lcsh )
Nickel alloys -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry no. 1201-04."
General Note:
"Approved Code No. 443."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004930333
oclc - 643343715
System ID:
AA00007715:00001

Full Text


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Approved Code No. 443


Registry No. 1201--04


NATIONAL RECOVERY ADMINISTRATION


CODE OF FAIR COMPETITION
FOR THE

NICKEL AND NICKEL ALLOYS
..INDUSTRY

AS APPROVED ON MAY 24, 1934


























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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Seattle, Wash.: 809 Federal Office Building.












Approved Code No. 443


CODE OF FAIR COMPETITION
FOR THE

NICKEL AND NICKEL ALLOYS INDUSTRY

As Approved on May 24, 1934


ORDER

CODE OF FAIR COMPETITION FOR THE NICKEL AND NICKEL ALLOYs
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 Nickel and Nickel Alloys 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. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects with
the pertinent provisions an& will promote the policy and purposes of
said Title of said Act; and do hereby order that said Code of Fair
Competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
Approval recommended:
K. M. SIMPSON,
Division Administrator.
WASmINGTON, D.C.,
May 24, 1934.
62287---544-141---34 (381)













REPORT TO THE PRESIDENT

The PRESIDENT,
The White House.
SIR: The original code for the Nickel and Nickel Alloys Industry
was submitted on August 21, 1933, by the Nickel Alloys Association,
Incorporated, organized in 1933 representing in excess of 90% of the
known members of the Industry and 90% of the volume of produc-
tion. Several revisions of the code were made prior to the public
hearing which was held on April 18, 1934. This code was revised
during the recess of this hearing and was submitted in its present
form for approval. Every person who requested an appearance
was properly heard in accordance with statutory and regulatory
requirements.
The Nickel and Nickel Alloys Industry includes (a) the primary
production of Nickel or Nickel Alloys having a nickel content of
over 30% and/or the production of semifinished products and/or
the subsequent processing of such semifinished products into wrought
industry products, and (b), the original sale in the United States
either directly or indirectly through subsidiary and/or affiliated
companies or agents of industry products by any individual, partner-
ship, association, corporation or other form of enterprise engaged
in (a) above. Industry products include various forms of nickel
or nickel alloys having a nickel content of over 30%, namely, reduced
nickel, electrolytic nickel, shot, blocks, pellets, grain, powder, ingots,
blooms, billets, slabs, bars, rods, shapes, forgings, plates, sheets,
tubing and hot rolled strip; ribbon, wire and cold rolled strip only to
the extent that the production thereof for specific application is not
covered by other approved Codes of Fair Competition. Wrought
industry products are the products produced by the processes of
rolling, forging, drawing, and/or similar processes as in contradis-
tinction to "finished castings ", the production of which is governed
by other Codes of Fair Competition.
The United States uses over one-half of the world production of
nickel and except for the small quantity recovered as secondary metal
and that produced by electrolytic copper refineries, imports its
needs chiefly from Canada. Imports which can be satisfactorily
compared only on a value basis reached a total value of $19,000,000 in
1929, and $10,500,000 in 1933.
Nickel finds application in special alloy steels used in automobiles,
machines, and in many other products, and has proved indispensa-
ble to modern industry in many of its alloys other than the ferrous
group. Possibly the most important is the direct-smelted alloy con-
taining approximately two-thirds nickel and one-third copper,
known to the trade as Monel metal. These nonferrous alloys are
distinguished by their resistance to stain, their workability and their
strength. Nickel silver, an alloy containing nickel, copper and zinc
(382)







383


continues to be used extensively as a base for silver-plated ware, flat
keys, plumbing fixtures and many other uses. Electroplating, an
old use for nickel, has been superseded to some extent by chromium
plating. It has, however, been found necessary to apply a heavy
plate of nickel before applying the chromium plate to obtain the best
results. In fact more nickel is consumed per unit area for chromium
plating than was formerly used for nickel plating. Nickel-clad steel
plate is made by rollplating pure nickel on steel. The resulting
sheets have a surface highly resistant to chemical attack but other-
wise have the qualities of steel. The use of nickel in combination
with chromium as alloy constituents are the bases of a stainless
steel". Various combinations of chromium and nickel are also
the alloy constituents for various heat resisting alloys. The use of
nickel in coins, catalyzers, Edison storage batteries, electrical resist-
ance alloys and chemical salts are among the many industrial de-
mands for nickel.
The three companies who are the proponents of this code repre-
sent the entire industry included under the code and normally em-
ploy about 1,500 persons of whom 1,200 are employed at present.
The code makes provision for a basic 40 hour week which represents
a reduction from the erstwhile 48 hour week. There are the usual
exceptions from the basic 40 hour week, with some provisions for
peak periods and continuous operations. These exceptions however
are covered by provisions of time and one-half for overtime. The
maximum of 40 hours per week as outlined in this code and the new
minimum rates per hour for the industry, as well as the provision
for adjustment of wages above -the minimum, should result in a
further spread of not only the available work among the workers,
but also increase consumers' purchasing power.
ARuTCLE I. States the purpose of the code.
ARnCLE II. Accurately defines specific terms applicable to the
Nickel aid Nickel Alloys Industry as used in this Code.
ARwILE III. The maximum hours are limited to 40 hours per
week'except that during six weeks in any six months period of a
calendar year in order to meet seasonal or peak demand, employees
may be permitted to work not more than 48 hours per week with
the proviso that time and one half shall be paid for any employee
so employed for hours worked in excess of 40 hours per week. Office,
salaried and other employees not covered by the above who receive
less than $35 per week shall not be permitted to work in excess of 40
hours in any one week except that they may be permitted to work 48
hours in any one week in any 4 weeks' period. Watchmen may be
permitted to work either 84 hours in any 14 day period or 56 hours
in any seven day period, provided that such employees shall have
at least one day's rest in every seven. Employees engaged in an
executive, managerial or supervisory capacity who receive not less
than $35 per week and those engaged in emergency repairs or main-
tenance where the safety of life, or health, or the protection of prop-
erty demands longer hours, are not subject to hourly limitations. No
employee shall be permitted to work more than six days .in any
seven day period except as otherwise provided.
ARTICLE IV. The minimum wages for employees shall not be less
than 400 per hour. No person employed in clerical or office work






884


shall be paid less than at the rate of $15.00 per week except that
office boys and girls and messengers may be paid 80% of the estab-
lished minimum for office employees. The minimum rate of pay for
work performed for any pay period shall apply irrespective of
whether an employee is actually compensated on a time rate, piece
work or other basis. Provision is made for the employment of handi-
capped persons. Provision is also made for the adjustment of wages
above the minimum if such adjustment has not been made prior to
March 15, 1934.
ARTICLE V. 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 except in clerical office, sales, sales service, technical
and engineering departments. This article also sets forth mandatory
provisions respecting the rights of employees to organize and bargain
collectively. It also provides for matters having to do with reclassi-
fication of employees, standards for safety and health, the observance
of state laws and the posting of complete copies of this code so that
they are accessible to employees.
ARnCLE VI. Establishes a Code Authority consisting of seven
members, six of whom are to be selected from and by the Board of
Directors of the Nickel Alloys Association and one member to be
selected by the Members of Industry who are not members of the
association by a fair method of election to be proposed by the associa-
tion to and with the approval of the Administrator. In addition to
the seven members above mentioned there may be one or three repre-
sentatives without vote and without compensation from 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. Sets forth Trade Practices for the Industry.
ARTICLE VIII. No provision of this code relating to terms of sell-
ing, shipping, or marketing shall apply to export trade or sales or
shipments for export trade, or transactions in the foreign commerce
of the United States.
ARTICLE IX. This code and all the provisions thereof are ex-
pressly made subject to the right of the President in accordance with
Subsection (b) of Section 10 of the Act, from time to time to cancel
or modify any order, approval, license, rule or regulation issued
under the Act. This Code, except as to provisions required by the
Act, may be modified on the basis of experience or changes in cir-
cumstances; such modification to be based upon application to the
Administrator and such notice and hearing as he may specify, pro-
vided, however, that all proposals for such modification shall first
be referred to the Code Authority for its recommendation thereon.
ARwCLE X. No provision of this Code shall be so applied as to
promote monopolies or monopolistic practices, or to eliminate, op-
press or discriminate against small enterprises.
ARTICLE XI. Makes provision that this Code shall become effective
ten days after its approval by the Administrator.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:






385


I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of Indus-
try for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant asso-
ciation is an industrial association truly representative of the afore-
said Industry, and that said association 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. JOINSON,
Administrator.
MAY 24, 1934.












CODE OF FAIR COMPETITION FOR THE NICKEL AND
NICKEL ALLOYS INDUSTRY
ARTICLE I-PURPOSES

To effectuate the policies of Title 1 of the National Industrial
Recovery Act, this Code is established as a Code of Fair Competi-
tion for the Nickel and Nickel Alloys Industry, and its provisions
shall be the standards of fair competition for such Industry and
be binding upon every member thereof.
ARTICLE III-DEFINITIONS

Wherever used in this Code or any supplement appertaining
thereto, the terms enumerated in this Article shall have the meanings
herein defined unless the context shall otherwise clearly indicate:
SECTION 1. The term "President" means the President of the
United States of America.
SECTION 2. The term "Act" means Title I of the National Indus-
trial Recovery Act.
SECTION 3. The term "Administrator" means the Administrator
for Industrial Recovery.
SETION 4. The term "Nickel and Nickel Alloys Industry" or
"Industry as used herein includes (a) the primary production of
nickel or nickel alloys having a nickel content of over 30% and/or
the production of semifinishedd products" and/or the subsequent
processing of such semifinishedd products into "wrought industry
products where such production or processing is performed in a
"nickel plant", and (b), the original sale in the United States,
either directly or indirectly through subsidiary and/or affiliated
companies and/or agents, of industry products by any individual,
partnership, association, corporation or other form of enterprise
engaged in (a) above.
(a) The term industry products includes the following forms
of nickel or nickel alloys having a nickel content of over 30% :
Reduced nickel, electrolytic nickel, shot, blocks, pellets, grain, pow-
der, ingots, blooms, billets, slabs, bars, rods, shapes, forgings, plates
sheets, tubing, and hot rolled strip. Ribbon, wire, and cold rolled
strip are only included within this definition to the extent that the
production thereof for specific applications is not covered by other
approved Codes of Fair Competition.
(b) The term wrought industry products" means the products
produced by processes of rolling, forging, drawing, and other simi-
lar processes as in contradistinction to finished castings ", the pro-
duction of which is governed by other Codes of Fair Competition.
(c) The term semifinished products includes the following in-
dustry products-to wit: Ingots, blooms, billets and slabs.
(886)






387


(d) The term "nickel plant means:
(1) A hot rolling mill, or,
(2) A melting shop operated in conjunction with a hot rolling
mill, or,
(3) All other equipment used in processes and operated in con-
junction with a rolling mill for the production or processing of in-
dustry products, semifinished products and/or wrought indus-
try products as hereinabove defined.
SECTION 5. The term Member of Industry includes, but without
limitation any individual partnership, association, corporation or
other form of enterprise engaged in the Industry, either as an em-
ployer or on his or its own behalf.
SECTION 6. The term Employee means and includes any indi-
vidual engaged in the Industry in any capacity receiving compensa-
tion for his services, irrespective of the nature or method of pay-
ment of such compensation, except a Member of Industry.
SECTION 7. The term Employer means and includes anyone by
whom any such employee is employed or compensated.
SECTION 8. The term "Association means the Nickel Alloys Asso-
ciation. Inc., a membership corporation organized under the laws
of the State of New York.

ARTICLE III--Ho1TRS OF LABOR

MAXIMUM HOURS

SECTION 1. No employee shall be permitted to work in excess of
forty (40) hours in any one (1) week or eight (8) hours in any
twenty-four (24) hour period except as herein otherwise provided.

HOURS FOR CLERICAL AND OFFICE EMPLOYEES
SECTION 2. No person employed in clerical or office work shall be
permitted to work in excess of forty (40) hours in any one (1) week,
except that during any one (1) week in any four (4) weeks' period
such employee may be permitted to work a maximum of forty-eight
(48) hours. A normal work day shall not exceed eight (8) hours.

EXCEPTIONS TO HOURS
SECTION 3. The limitation as to hours of labor as specified in Sec-
tions 1, 2 and 4 of this Article III shall not apply to the following:
(a) Employees engaged in emergency maintenance or emergency
repair work involving breakdown or protection of life or property;
provided that in such special cases not less than one and one-half
(1% ) 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 (1) week or eight (8) hours in any one (1) day.
(b) Outside sales and outside sales service employees.
(c) Persons in a managerial, executive, supervisory or technical
capacity and their immediate assistants, provided that this exception
shall apply to no such employee who is paid less than at a rate of
$35.00 per week.
62287" -544-141-34----2





388


(d) Watchmen, who may be permitted to work not in excess of
eighty-four (84) hours in any fourteen (14) day period or fifty-six
(56) hours in any seven (7) day period; provided, that no such em-
ployee shall be permitted to work more than six (6) days in any
seven (7) day period.
(e) Employees engaged in the preparation, care and maintenance
of machinery and production facilities, heaters, engineers, firemen,
stock and shipping employees, and truckmen engaged in outside
delivery and pick-up service, who may be. permitted to work not in
excess of 10% additional hours over the maximum hours allowed in
any one (1) week, provided, however, that such employee so em-
ployed shall be paid not less than one and one-half (11) times his
normal wage rate for all hours worked in excess of forty (40) hours
in any one (1) week, or eight (8) hours in any one (1) day.
(f) Skilled employees in continuous processes where the restriction
of hours of labor of such employees would unavoidably reduce or
interrupt production because of demands inherent or peculiar within
the processes themselves; provided that in such cases such employees
shall not work more than forty-eight (48) hours ih any one (1)
week, and provided further, that such employees so employed shall
be paid not. less than one and one-half (11/) times his normal wage
rate for all hours worked in excess of forty (40) hours in any one
(1) week, or eight (8) hours in any one (1) day.
(g) During any period in which a concentrated demand upon any
division of the Industry shall place an unusual or temporary burden
for production work upon its facilities or to meet seasonal or peak
requirements, or production emergencies, any employee of any such
division may be permitted to work not more than forty-eight (48)
hours per week in not more than six (6) weeks in any six (6)
months of a calendar year; provided, that in such cases such em-
ployees so employed shall be paid not less than one and one-half
(11i) times his normal wage rate for all hours worked in excess of
forty (40) hours in any one (1) week or eight (8) hours in any one
(1) day.
STANDARD WEEK

SECTION 4. No employee shall be permitted to work more than six
(6) days in any seven (7) day period.

EMPLOYMENT BY SEVERAL EMPLOYERS

SECTION 5. No employer shall knowingly permit any employee to
work for any time, which, when totalled with that already performed
with another employer or employers in this Industry or other
Industries exceeds the maximum permitted herein.

ARTICLE IV-WAGES

MINIMUM WAGES

SECTION 1. No employee, except as herein otherwise specified, shall
be paid in any pay period less than at the rate of forty cents (40t)
per hour. The minimum.rates herein provided shall be construed as






389


the hiring rates applying to totally unskilled or common labor.
Other classes of labor shall be compensated at rates above such mini-
mum. Minimum rates in effect on March 15, 1934, which were above
the minimum specified shall in no case be reduced.

CLERICAL AND OFFICE EMPLOYEES

SECTION 2. No accounting, clerical, sales, or service employees
working on a weekly basis in any office shall be paid less than at the
rate of Fifteen (15) Dollars per week; provided, however, that
office boys and girls and messengers may be paid not less than at a
rate of 80% of the minimum hereinabove specified; 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 office
employees of any office of any one employer, but in any case each
employer shall be entitled to employ at least one such employee.

PIECEWORK COMPENSATION-MINIMUM WAGES

SECTION 3. This Article establishes a minimum rate of pay for any
pay period which shall apply, irrespective of whether an employee is
actually compensated on a time rate, piecework, or other basis.

FEMALE EMPLOYEES

SECTION 4. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
employees, and, when they displace male employees they shall receive
the same rate of pay as the men whom they displace. The Code
Authority shall, within ninety (90) days after the effective date of
this Code, file with the Administrator a list of all occupations in the
Industry in which both men and women are employed.

WAGES ABOVE TlE MINIMUM

SECTION 5. Equitable adjustments with respect to rates above the
minimum shall be made within thirty (30) days after the effective
date of this Code by each employer who has not heretofore made
such adjustments under the National Industrial Recovery Act in
every case where such adjustments are required to give effect to the
purposes and intent of the National Recovery program. In no event,
however, shall hourly rates be reduced in making such equitable ad-
jastments. Within thirty (30) days after the effective date of this
Code each Member of Industry shall make a report of such adjust-
ment whether made prior to or subsequent to date of approval of
this Code to the Code Authority.

HANDICAPPED PERSONS

SECTION 6. A person whose earning capacity is limited because of
age, physical or mental handicap, or other infirmity, may be em-
ployed on light work at a wage below the minimum established by
this Code, if the employer obtains from the State Authority, desig-





390


nated by the United States Department of Labor, a certificate au-
thorizing such person's employment at such wages and for such hours
as shall be stated in the certificate. Such Authority shall be guided
by the instructions of the United States Department of Labor in
issuing certificates to such persons. Each employer shall file monthly
with the Code Authority a list of all such persons employed by him,
showing the wages paid to, and the maximum hours of work.for
such employee.
PAYMENT OF WAGES
SECTION 7. Each employer shall make payment of all wages in
lawful currency or by negotiable check therefore, payable on demand.
These wages shall be exempt from any payments other than those
voluntarily ordered paid by the wage earner, or required by law.
Wages shall be paid at no greater interval than one-half month, and
salaries at no greater interval than one month. No employer shall
withhold wages, except, as otherwise provided by law.

ARTICLE V-GENERAL LABOR PROVISIONS

CHILD LABOR
SEC(TON 1. No person under 18 years of age shall be employed ex-
cept in clerical, office, sales, sales service, technical, and engineering
departments, and no person under 16 years of age shall be employed
in any capacity. In any state an employer shall be deemed to have
complied with this provision as to age if he shall have on file a cer-
tificate or permit duly signed by the Authority in such state em-
powered to issue employment or age certificates or permits showing
that the employee is of the required age.

PROVISIONS OF THE ACT
SECTION 2. (a) Employees shall have the right to organize and
bargain collectively through representatives of their own choosing,
and slhll be free from the interference, restraint, or coercion of em-
ployers of labor, or their agents, in the designation of such repre-
sentatives 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, and,
(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.

RECLASSIFICATION OF EMPLOYEES

SECTION 3. 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.






391


STANDARDS FOR SAFETY AND HEALTH

SEcTON 4. 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 for safety and health for this
Industry shall be submitted to the Administrator by the Code
Authority within six (6) months after approval of this Code.

STATE LAWS

SECTION 5. No provision in this Code shall supersede any State or
Federal law which imposes on employers more stringent requirements
as to age of employees, wages, hours of work, or as to safety, health,
sanitary or general working conditions, or insurance, or fire protec-
tion, then are imposed by this Code.

POSTING

SECTION 6. All employers shall post and keep posted complete
copies of this Code and all amendments thereto in conspicuous places
accessible to employees, and shall comply with all rules and regula-
tions relative to posting which may from time to time be prescribed
by the Administrator.

COMPANY TOWNS AND STORES

SECTION 7. Employees other than maintenance or supervisory men,
or those necessary to protect property, shall not be required as a
condition of employment, to live in houses rented from or specified
by the employer. No employee shall be required, as a condition of
employment, to trade at a store owned or specified by an employer.

ARTICLE VI-ORGANIzATION, POWERS AND DUTIES OF THE CODE
AUTHORITY
Au'rxonrn

ORGANIZATION AND CONSTITUTION

SETION 1. A Code Authority to administer this Code is hereby
constituted and shall consist of seven (7) voting members who
shall hold office for a term of one (1) year or until their successors
are elected and qualified. Six (6) of such members shall be selected
from and by the Board of Directors of the Association and the one
(1) remaining member shall be selected by the members of Industry,
who are not members of the Association, by a fair method of election
to be proposed by the Association to and approved by the Admin-
istrator. Within thirty (30) days after the effective date of this
Code, in the event that the seventh member is not so selected by the
non-members of the Association, the Administrator may then ap-
point such member to the Code Authority. Each group may fill
any vacancy at the expiration of terms of office or when vacancies
otherwise occur.
SECrTON 2. In addition to the above membership there may be not
more than three (3) additional members without vote and without






392


compensation from the Industry to be appointed by the Adminis-
trator to serve for such terms as he may specify.
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
Association, By-Laws, Rules and Regulations, and any amendments
when made thereto, together with such other information as to
membership, organization, and activities as the Administrator may
deem necessary to effectuate the purposes of the Act.
SErCoN 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, he may require
an appropriate modification in the method of selection of the Code
Authority.
SECTION 5. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor
shall any member of the Code Authority be liable in any manner to
anyone for any act of any other member, officer, agent, or employee
of the Code Authority. -Nor shall any member of the Code Au-
thority be liable to anyone for any act or omission to act on his own
part under this Code, except for his own individual wilful mis-
feasance or nonfeasance.
POWERS AND DUTIES

SECTION 6. Subject to such rules and regulations as may be issued
by the Administrator and to the extent permitted by the Act, the
Code Authority shall have the following further powers and duties:
(a) To 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 to report thereon to the Administrator.
(b) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisions of
the Act.
(c) To adopt By-Laws and Rules and Regulations for.its pro-
cedure and for the administration of this Code. The Code Authority
shall promptly furnish to the Administrator true copies of the
By-Laws, Rules and Regulations adopted pursuant to this paragraph.
(d) To obtain from Members of Industry such information and
reports as are required for the administration of this Code. In addi-
tion to information required to be submitted to the Code Authority,
members of the Industry, subject to this Code, shall furnish such
statistical information as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act to such Fed-
eral and State agencies as he may designate; provided that nothing
in this Code shall relieve any Member of the Industry of any exist-
ing obligations to furnish reports to any government aency.- No
individual report shall be disclosed to any other Member of Industry






393


or any other party except to such other governmental agencies as
may be directed by the Administrator.
(e) 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 Au-
thority 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.
(f) To make recommendations to the Administrator for the coor-
dination of the administration of this Code with such other Codes,
if any, as may be related to the Industry.
(g) To cooperate with the Administrator in regulating the use of
any N.R.A. insignia solely by those Members of Industry who have
assented to, and are complying with, this Code.
(h) To recommend to the Administrator further fair trade prac-
tice provisions to govern Members of Industry in their relations with
each other or with other Industries, and concerning control of pro-
duction through voluntary agreement and to recommend to the
Administrator measures for industrial planning, including stabiliza-
tion of employment.
SECTION 7. It being found necessary to support the administration
of this Code, in order to effectuate the policy of the Act and to main-
tain the standards of fair competition established hereunder, the
Code Authority is authorized:
(a) To incur such reasonable obligations, as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which shall be held in trust for the purposes of the Code
and raised as hereinafter provided:
(b) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary:
1. An itemized budget of its estimated expenses for the foregoing
purposes, and
2. An equitable basis upon which the funds necessary to support
such budget shall be contributed by all Members of Industry
receiving the benefits accruing from the maintenance of such stand-
ards, and the administration thereof; and
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and collect equitable con-
tributions as above set forth from all such Members of Industry, and
to that end, if necessary, to institute legal proceedings therefore in its
own name.
SECTION 8. Only Members of Industry complying with the Code
and contributing to the expenses of its administration, as provided in
Section 7 hereof, shall be entitled to participate in the selection of the
members of the Code Authority or to receive the benefits of its vol-
untary activities or to make use of any N.R.A. insignia.
SECTION 9. If the Administrator shall determine at any time that
any action of the Code Authority or any agency thereof is unfair or
unjust or contrary to the public interest, the Administrator may
require that such action be suspended to afford an opportunity for
investigation 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






394


fail to disapprove after thirty (80) days' notice to him of intention
to proceed with such action in its original or modified form.

ARTICLE VII-MARKETING AND TRADE PRACTICE RULES
TRADE PRACTICE RULES
Violation of any of the following sections of this Article VII by
any member of Industry, either directly or indirectly through an
officer, agent or employee, shall be deemed an unfair method of
competition.
INACCURATE ADVERTISING
SECTION 1. No Member of Industry shall publish advertising
(whether printed, radio, display, or of any other nature), which is
misleading 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, quantity, origin, size,
substance, character, nature, material, or content), or credit terms,
values, policies, services, or the nature or form of the business
conducted.
INACCURATE LABELLING
SECTION 2. No Member of 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 the brand, grade, quality, quan-
tity, origin, size, substance, character, nature, material, content, or
preparation of such goods.

INACCURATE REFERENCES TO COMPETITORS
SECTION 3. No Member of Industry shall publish advertising
which refers inaccurately in any material particular to any com-
petitors or their goods, prices, values, credit terms, policies, or
services.
FALSE BILLING
SECTION 4. No Member of Industry shall knowingly withhold from
or insert in any quotation or invoice any statement that makes it
inaccurate in any material particular.

THREATS OF LAW SUITS
SECTION 5. No Member of Industry shall publish or circulate un-
justified or unwarranted threats ofslegal 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.

BRIBING EMPLOYEES
SECTION 6. No Member of Industry shall give, permit to be given,
or directly offer to give, anything of value for the purpose of in-
fluencing or rewarding the action of any employee, agent or repre-







395


sentative of another in relation to the business of the employer of
such employee, the principal of such agent or the represented party,
without the knowledge of such employer, principal, or party. This
commercial 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.

INTERFERENCE WITH ANOTHER'S CONTRACTS

SECTION 7. No Member of Industry shall attempt to induce the
breach of any existing contract between a competitor and his cus-
tomer or source of supply; nor shall any Member of Industry inter-
fere with or obstruct the performance of such contractual duties.

COERCION

SECTION 8. No Member of Industry shall require that the purchase
or lease of any goods be a prerequisite to the purchase or lease of any
other goods.
ARTICLE VII-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 ship-
ments for export trade. Export Trade shall be as defined in the
Export Trade Act adopted April 10, 1918.

ARTICLE IX-MODIFICATION

SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President in accordance with the
provisions of Subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regu-
lation issued under 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 imposed by him upon his approval thereof.
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, such modifications to be based upon application to the Ad-
ministrator and such notice and hearing as he may specify, provided,
however, that all proposals for such modification shall first be re-
ferred to the Code Authority for its recommendation thereon.

ARTICLE X-MONOPOLIES

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.

ARTICLE XI-EFFECTIVE DATE

This Code shall become effective ten (10) days after its approval
by the Administrator, and shall continue in effect until the close of






396

business on June 16, 1935, or to the earliest date prior thereto on
which the President or the Congress shall declare that the emergency
recognized by Section 1 of the National Industrial Recovery Act
has ended.
Approved Code No. 443.
Registry No. 1201-04.

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