NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Wood Turning and Shaping Industries)
AS APPROVED ON AUGUST 20, 1934
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Registry No. 330-06
Approved Code No. 383-Supplement No. 1
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. 383-Supplement No. 1
SUPPLEMENTARY CODE OF FAIR COMPETITION
As Approved on August 20, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE DOWEL INDUSTRY
A DIVISION OF THE WOOD TURNING AND SHAPING INDUSTRIES
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 Dowel Industry, a subdivision of the Wood
Turning and Shaping Industries, and hearings having been duly
held thereon and the annexed report on said Code, containing find-
ings with respect thereto, having been made and directed to the
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 Pres-
ident, 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 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, provided however
that the provisions of Section (i), Article E, Section 1, Subsection
A-(a) be and they hereby are stayed pending my further Order.
Further provided that this Order shall not become effective for a
period of fifteen (15) days after the date hereof in order that con-
sideration may be given to objections thereto, if any, of interested
parties. At the expiration of such period, this Order shall become
effective unless prior thereto, I have, by my further Order, otherwise
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
C. E. ADAMS,
August 20, 1934.
LETTER TO THE PRESIDENT
The IWhite House.
SIR: This is a report on the Code of Fair Competition for the
Dowel Industry, being Divisional Unit Number 9 of Part B of the
Wood TIurning and Shaping Industry, approved Code No. 383, the
hearing having been conducted in Washington, D.C., on January
16th, 19:34, in accordance with the provisions of the National
*Industrial Recovery Act.
PROVISIONS ON HOURS AND WACES
The maximum hours and minimum rates of wages for this industry
are prescribed in the approved Code of Fair Competition for the
Wood Turning and Shaping Industries of which this industry is a
The minimum age. provided in the approved Code of Fair Compe-
tition for the 'Wood Turning and Shaping Industries is effective for
this Divisional Unit.
ECONOMIC EFFECT OF THIS CODE
This industry employed in 1933 approximately 20 per cent more
workers than were employed in 1932, though nearly 25 per cent less
than during the year 1929. The work week averaged about 52 hours
in 1929 but was reduced under the President's Reemployment Agree-
ment to 40 hours in 1933. However, under the reduced hours with
production remaining at present levels, little increase in employment
The minimum wage rate prescribed in this Code will greatly in-
crease the average earnings of employees as compared with the earn-
ings of 1929 and the years which followed during which time the
minimum wage was only increased from 24.1 cents per hour in 1929
to 25 cents per hour in 1933. From these figures it. is apparent that
the adoption of the proposed minimum wage rates (male employees
in the north 35 cents per hour, in the south 321. cents per hour,
female employees 30 cents per hour in the north and 271.G cents in
the south) will cause an increase in the payrolls of this industry.
The Assistant Deputy Administrator in his final report to me on
said Code having found as herein set forth and on the basis of all
the proceedings in this matter:
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 elimi-
nating unfair competitive practices, by promoting the fullest pos-
sible utilization of the present productive capacity of industries, by
avoiding undue restriction of production (except as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing 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 perti-
nent 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 associa-
tion is an industrial association truly representative of the aforesaid
industry; and that said association imposes no inequitable restric-
tions 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 the approval of said
For these reasons, therefore, this Code has been approved.
HUGH S. JOHNsoN,.
AUGUST 20, 1984.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE DOWEL INDUSTRY
A DIVISION OF TIE WOOD TURNING AND SHAPING INDUSTRIES
PART B-DOWEL DIVISION, UNIT NO. 9
SECTION 1. The Dowel Division shall consist of all members of
the Industry engaged in the manufacture of Dowels.
SECTION 2. The term Dowel as used in this Divisional Unit
shall mean hard wood rods, cylindrical in shape of any length not
exceeding one and one-half inches in diameter, excepting, however,
dowel pins in all stages of manufacture; farm tool handles as de-
fined by Department of Commerce Simplified Practice Recommenda-
tion Number 76; and Candy Sticks and Skewers as defined in Divi-
sional Units Numbers 4 and 7, respectively, of this Code.
SECTION 3. The term broker for the purpose of this Division
shall mean one who sells for a manufacturer, in the manufacturer's
name, for the manufacturer's account, at prices and on terms and
conditions named by the manufacturer, and who carries no stock
and whose compensation is in the form of a brokerage for such
ARTICLE B-ADMINISTRATION OF DIVISIONAL AGENCY
SECTION 1. Within fifteen (15) days after the effective date of this
Divisional Code the Secretary of the Dowel Manufacturer's Asso-
ciation shall call a meeting of all members of this Division for the
purpose of electing the Administrative Agency of this Division. Due
notice of this meeting shall be sent to every member of the Division
in writing or by such other methods as will reasonably insure that
all members are informed of such meeting and its purpose.
SECTION 2. The Administrative Agency of this Division shall con-
sist of a Board of six (6) members who shall serve for one year or
until their successors are elected, and shall be elected by the following
(a) At least one member of the Administrative Agency shall be
a member of the Industry who is not a member of the Association, if
there be any such, and shall be elected by a majority vote of all
nonmembers of the Association present in person, by letter or by
(b) The remaining members shall be elected by a majority vote of
all the members of the Association present in person, by letter or by
proxy, each member to have one vote. Three members shall repre-
sent the members of the Association located in the Northern Group;
(the northern group shall consist of the states of Maine, New Hamp-
shire, Vermont, Massachusetts, Connecticut, Rhode Island, New
York, Pennsylvania, New Jersey, Delaware and Maryland) one mein-
ber shall represent the members of the Association located in the
Southern Group. (The Southern Group shall consist of the states as
specified in Part A, Article II, Section 8 of the Code for the Wood
Turning and Shaping Industries) and one member shall represent
the Western Group. (The Western Group shall include all States
that are not included in the Northern or in the Southern Group.)
(c) A vacancy in the membership of the Administrative Agency
may be filled from the appropriate group by a majority vote of the
remaining members of the Administrative Agency, provided, how-
ever, that there shall always be a member of the Administrative
Agency who is not. a member of the said Association, if there be
(d) In addition to the members elected by the Industry, the Ad-
ministrator, in his discretion, may appoint one to three non-voting
members to represent the Administrator.
ARTICLE C-TERMS OF PAYMENT
The terms of payment for this Division shall not be more favor-
able than a cash discount of 3% for payment in advance of ship-
ment, 2% for payment within ten days after shipment; 1% for pay-
ment on or before the 10th of any month for shipments of the previous
month; net 30 days, E.O.M.; all cash discounts shall be figured on
the net amount after deducting sales and/or excise taxes and all
claims and allowances for defective or rejected goods.
ARTICLE D-TRADE PRACTICES
The following shall be Trade Practice Rules for this Division in
addition to those set forth in Article X of Part A of the Code for
the Wood Turning and Shaping Industries:
RULE 1. No member of this Division shall pay or allow a com-
mission on a Federal or State Sales Tax.
RULE 2. No member of this Division shall guarantee prices against
decline or advance.
RULE 3. No member of the Industry shall ship goods on consign-
ment except under circumstances to be defined by the Administrative
Agency, and approved by the Administrator, where peculiar cir-
cumstances of the Industry require the practice.
RULE 4. No member of this Division shall permit his brokers or
commission salesmen to split or divide commissions with customers.
ARTICLE E--EXCEPTIONS AND ADDITIONS TO PART A OF THE CODE FOR
THE WOOD TURNING AND SHAPING INDUSTRIES
SECTION 1. The following section shall be added to the provisions
of Article VIII of Part A of the Code for the Wood Turning and
A. DESTI7CTIVE PRICE CTrTNOG
(a) The Piriciple.-(i) Destructive price cutting is an unfair
method of competition and is forbidden at all times, irrespective of
the existence of an emergency; I
(ii\ When no declared emergency exists as to any given product
there is to be no fixed minimum basis for prices but it is intended
that sound cost estimating methods should be used;
(iii) When an emergency exists as to any given product, sale be-
low the lowest reasonable cost of such product, in violation of sub-
section (c) hereof, is forbidden.
(b) tUntiform Cost Accouj.ting.-The Code Authority shall cause
to be formulated an accounting system and methods of cost finding
and /or estimating capable of use by all members of the Industry
and shall submit such system and methods to the Administrator for
review and approval. After such system and methods have been
formulated and approved by the Administrator, full details concern-
ing them shall be male available to all members. Thereafter it is
intended that alli miie)bers should utilize the principles of such
system or method,-.
(c) EJ;t., r ,ir (Lowc.'t Reasonable ('ost).-When an emergency
exists, the Code Authority may cause an impartial agency to inves-
tigate co.ts and to determine the lowest. reasonable cost of the product
affected by the emergency. Such determination shall exclude all cost
elements set forth in and shall be in all respects subject to such
rules and regulations as. may be ii-Nued by the Administrator and
subject to his approval or modification after such notice and oppor-
tunity to be heard as lhe may prescribe. The Code. Authority or the
Administrator may, from time to time, cause such determinations to
be reviewed or reconsidered and appropriate action taken.
(d) Defini;t;o',ns.-An "' Energency exists whenever the Admin-
istrator determines that destructive price cutting is rendering inef-
fective or seriously endangering the maintenance of the provisions
of this Code.
(i) When no emergency exists, the term shall have the meaning
declared in rules and regulations promulgated by the Administrator
on recommendation of the Code Authority or on his own motion;
(ii) When an emergency exists, the term shall mean any sale in
violation of subsection (c) hereof;
,(iii) It shall be an absolute defense to any charge of destructive
price cutting, if an impartial agency designated or approved by the
Ad ministrattor, shall find:
(aa) That the price complained of is justified by existing com-
petition, evidence of which has been reported to the Code Authority;
(bb) That the price complained of is justified as a method of
disposal of dropped lines or seconds, or
(cc) When no declared emergency exists, that the member charged
with destructive price cutting has in good faith endeavored to make
proper use of the announced cost estimating methods.
SECTION 2. Article IX, Section 1, of the Code of Fair Competition
of the Wood Turning and Shaping Industries in its application to
this Division shall be amended to read as follows:
I Se.? paragraph 2 of order approving this Code.
Each member of the Industry shall file with the Administrative
Agency on the date specified by the Administrative Agency after
reasonable notice, net price sheets or price lists and discount sheets
individually prepared by him and all terms and conditions of sale
relating thereto. Such net price sheets or price lists and discount
sheets and,/or terms and conditions of sale and any revisions thereof
shall become effective immediately upon receipt by the Administra-
tive Agency; shall be distributed by the Administrative Agency to
the members of the Industry and published to the trade immediately
upon receipt thereof; and shall be made available to all interested
parties. Revised net price sheets or price lists and discount sheets
and/or terms and conditions of sale may be filed from time to time
thereafter with the Administrative Agency by any member of this
division provided however that. such revisions shall be filed with the
Administrative Agency by registered mail and shall become effective
immediately upon telegraphic acknowledgment to be made by the
Administrative Agency the same day such revision is received. No
member of the Industry shall sell or offer for sale. any product of
the Industry at prices other than those noted in his or its net price
sheets or price lists and discount sheets and or on terms and condi-
tions of sale other than the terms and conditions of sale last filed
by such member with the Administrative Agency in accordance with
the foregoing provisions and in effect at the time of such sale or
offer to sell.
ARTICLE F-EFFECTIrn DATE
This Code for Divisional Unit No. 9 of the Wood Turning and
Shaping Industries shall become effective on the second Monday after
its approval by the President.
Approved Code No. 383-Supplement No. 1.
Registry No. 330-06.
UNIVERSITY OF FLORIDA
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