Code of fair competition for the cork industry as approved on January 12, 1934

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Title:
Code of fair competition for the cork industry as approved on January 12, 1934
Portion of title:
Cork industry
Physical Description:
p. 45-58 : ; 23 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

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

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General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Approved Code No. 199."
General Note:
"Registry No. 308-1-01."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004930325
oclc - 63654482
System ID:
AA00007717:00001

Full Text




Approved Code No. 199 Registry No. 308-1-01


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


CORK INDUSTRY

AS APPROVED ON JANUARY 12, 1934


I'
/ I


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


SForslb the SauprinteBdent Docuamen Wahington, D.C. - Price 5 centa


Approved Code No. 199


Registry No. 308-1-01

























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.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

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Approved Code No. 199


CODE OF FAIR COMPETITION
FOR THE

CORK INDUSTRY

As Approved on January 12, 1934





ORDER
APPROVING CODE OF FAIR COMPETITION

FOR THE CORK 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 the Code of
Fair Competition for the Cork 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
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:
GEORGE L. BERRY,
Division Administrator.
WASHNGTON, D.C.,
January 12, 1934.
a1503o-313--3-34 (45)













The PRESIDENT,
The White House.
SIR: The public hearing on the Code of Fair Competition for the
Cork Industry of the United States, submitted by the Cork Institute
of America, located at 5935 Grand Central Terminal, New York, was
conducted in Washington, D.C., on the 25th of October, 1933, in
accordance with the provisions of the National Industrial Recovery
Act. The Association claims to represent 981% of the Industry.
The maximum hours established under this Code are forty (40)
per week, averaged over a three-month period, with a limitation of
forty-eight (48) hours in any one week. Exceptions are allowed for
executives, technical workers, or supervisors who receive not less
than thirty-five ($35.00) dollars per week, and to their immediate
nonproductive personal assistants receiving not less than twenty-five
($25.00) dollars per week, and outside salesmen; also employees en-
gaged in emergency repair work, firemen, engineers, truck drivers,
and shipping crews, provided they are paid one and one-half times
the regular rate of pay for all hours per week over forty-four (44).
Watchmen are allowed fifty-six (56) hours per week, provided they
are required to work only six days per week.
In 1929 this industry operated approximately 53 hours per week,
and in 1931 approximately 50 hours per week. During 1929 ap-
proximately 3.842 wage earners were employed, and in 1931 ap-
proximately 3,018 wage earners were employed. In order to bring
employment back to the 1929 level it would be necessary to adopt a
39.3 hour week. In view of these facts a 40-hour week would appear
equitable and justifiable, reabsorbing, as it will, approximately 755
wage earners in this industry.
The minimum wages established in this Code are thirty-eight (380)
cents per hour for males and thirty cents (30W) per hour for females.
Protection of employees on piecework performance is guaranteed.
Exceptions to the minimum wage are allowed to learners, office
boys, and messengers, who shall receive 80 percent of the minimum,
and to handicapped persons whose earning capacity is limited, pro-
vided the employer obtains a certificate from the State authority
designated by the United States Department of Labor.
Wages in this Industry represented 18.3 percent of the value of
products in 1929, compared with 16.5 percent for all industries com-
bined. In 1931 wages in this line of activity represented 20.4 per-
cent of the value of products, compared with 17.4 percent for
combined industries.
Wage earners in 1931, on a 50-hour basis, were paid an average
of 38.6 cents per hour.
The increase in price to the purchaser should not represent more
than 7.4 percent by the increased wage rates and shortened hours.
If wages in this industry are maintained at the 1929 hourly average,
(46)









i.e., 39.7 cents per hour, and on the basis of a 40-hour week, the total
pay roll would increase $87,943.00.
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;
I find that--
(a) Said Code is well designed to promote the policies and
purposes 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 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 supervision, by eliminating unfair competitive practices, by
promoting the fullest possible utilization of the present productive
capacity of industries, by avoiding undue restrictions of production
(except as may be temporarily required), by increasing the con-
sumption of industrial and agricultural products through increasing
purchasing power, by reducing and relieving unemployment, by im-
proving 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 associa-
tion is a trade 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 approval of said Code.
This Industry has cooperated in a most satisfactory manner with
the Administration in the preparation of this Code. From the evi-
dence adduced during this hearing and from recommendations and
reports of the various Advisory Boards, it is believed that this Code
as now proposed and revised represents an effective, practical, equi-
table solution for this Industry and for these reasons has been
approved.
Respectfully,
HUGH S. JOHNSON,
A administrator.
JANUARY 12, 1934.








*


CODE OF FAIR COMPETITION
FOR THE
CORK 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 Cork Industry and shall be the standard of fair competition
for this Industry and binding on every member thereof.

ARTICLE II-DEFINITIONS

SECTION 1. Wherever used in this Code or in any subdivisional
Code or amendment made a part hereof, the terms hereinafter de-
fined in this Article shall, unless the content shall otherwise clearly
state, be the respective meanings in this Code and in such subdivi-
sional Codes and amendments.
SEC. 2. The term "industry ", as used herein, includes the manu-
facture and sale, including jobbing and wholesaling, of the products
of the industry, and branches or subdivisions thereof as may from
time to time be included under the provisions of this Code.
SEC. 3. The term products of this industry", as used herein,
includes corkwood and ground cork converted into cork products of
all descriptions, including: cork insulation and cork insulation ac-
cessories; cork stoppers; cork composition articles and specialties.
cork liners, whether plain or in combination with paper, metal foil
or other coating materials; cork marine goods; cork floor tile; and
all other products made primarily of cork which are manufactured
and sold by members of the Cork Industry. This includes also
special blocks with or without binder used exclusively for low
temperature insulation.
SEC. 4. The term "employee" as used herein includes anyone
engaged in the industry in any capacity receiving compensation for
his service, irrespective of the nature or method of payment of such
compensation.
SEC. 5. The term "employer" as used herein includes anyone by
whom any such employee is compensated or employed.
SEC. 6. The term "learners" as used herein shall mean any em-
ployee who has had no previous experience or employment in this
industry.
SEC. 7. The term member of the industry includes anyone en-
gaged in the industry as above defined, either as an employer or on
his own behalf.
SEC. 8. The term "Institute" shall mean the Cork Institute of
America.
SEC. 9. The term Board of Directors" shall mean the Board of
Directors of the Cork Institute of America.
(48)








SEC. 10. The term Secretary" shall mean the Secretary of the
Cork Institute of America.
SEC. 11. The term "Division/Divisional Group shall mean the
divisions of the Cork Institute of America which, as now constituted,
are as follows:
(a) Cork Insulation Manufacturers Division.
(b) Cork Stopper Manufacturers Division.
(c) Cork Composition and Cork Specialties Manufacturers Di-
vision.
d) Cork Marine Goods Manufacturers Division.
e) Cork Floor Tile Manufacturers Division.
f) Cork Bulletin and Display Board Manufacturers Division.
SEC. 12. The terms "Act and "Administrator" as used herein
shall mean respectively the National Industrial Recovery Act and
the Administrator for Industrial Recovery.
ARTICLE III-HoURS
MAXIMUM HOURS
SECTION 1. No employee shall be permitted to work in excess of an
average of forty (40) hours per week in any three (3) months' period
nor more than forty-eight (48) hours in any one week, except as
herein otherwise provided.
EXCEPTIONS AS TO HOURS
SEC. 2. The maximum hours of work stipulated in this Article
shall not apply to executives, technical workers, or supervisors who
receive not less than thirty-five ($35.00) dollars per week; nor to
their immediate nonproductive personal assistants who receive not
less than twenty-five ($25.00) dollars per week; nor to outside sales-
ment nor to any employee engaged in emergency repair work involv-
ing break-downs or protection of life or property; nor to firemen,
engineers, truck drivers, and shipping crews, provided, however,
that one and one half times the regular rate of pay shall be paid to
employees engaged in emergency repair work, firemen, engineers
truck drivers and shipping crews for all hours worked in excess of
forty-four (44) per week.
SEC. 3. Watchmen shall not be employed for more than fifty-six
(56) hours, in any one week, provided, however, that they shall not
be employed for more than six (6) days in any one week.
TEMPORARY EMPLOYEES
SEC. 4. Overtime at the rate of time and one half shall be paid
to any employee for all hours worked per week in excess of forty
(40) when the period of his employment is less than three months
and when the hours of his employment average more than forty
(40) hours per week for the period of such employment.
EMPLOYMENT BY SEVERAL EMPLOYERS
SEc. 5. No employee shall be permitted to work for a total number
of hours in excess of the number of hours herein prescribed for each
week, whether employed by one or more employers.









ARTICLE IV-WAGES
MINIMUM WAGES
SECTION 1. No employee, hired on an hourly basis, shall be paid
less than at the rate of thirty-eight (380) cents per hour for male and
thirty (300) cents per hour for female employees.

FEMALE EMPLOYEES

SEC. 2. The minimum rates established by this Article shall not in
any way be considered as a discrimination by reason of sex, and
where in any case female employees perform substantially the same
work as male employees, they shall receive the same rate of com-
pensation as male employees.

PIECE-WORK COMPENSATION-MINIMUM WAGES

SEC. 3. This article establishes a minimum rate of pay which shall
apply, irrespective of whether an employee is actually compensated
on time rate, piece-work performance, or other basis.

MINIMUM WAGE FOR OFFICE, CLERICAL, ETC.

SEC. 4. No accounting, clerical, office, service or sales employee (ex-
cept outside salesmen) shall be paid less than fourteen ($14.00)
dollars per week.
EXCEPTIONS TO MINIMUM WAGES

SEC. 5. The minimum wages stipulated for employees in Sections 1
and 4 of this Article shall not apply to learners, office boys, and
messengers, but the minimum rate of compensation for these em-
ployees shall be not less than eighty percent (80%) of the minimum
rates established in Sections 1 and 4 of this Article, and the total
number of such persons employed by any member of the industry
shall not exceed five percent (5%) of the total number of regular
employees engaged by such member, except that those members of the
industry employing less than one hundred (100) wage earners shall
be entitled to employ one learner or one office boy or one messenger
to each five (5) regular wage earners, but in no case more than a
total of five (5) such employees. Learners shall not be employed
as such for a period longer than six (6) months.

HANDICAPPED PERSONS

SEC. 6. A person whose earning capacity is limited because of age
or physical or mental handicap may be employed on light work at a
wage below the minimum established by this Code if the employer
obtains from the State authority designated by the United States
Department of Labor a certificate authorizing his employment at
fuch 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.








WAGES ABOVE MINIMUM

SEC. 7. It is the policy of the members of this industry to refrain
from reducing compensation for employment which compensation
was, prior to June 16, 1933, in excess of the minimum wage herein
set forth, notwithstanding that the hours of work in such employ-
ment may be reduced; and all members of this industry shall en-
deavor to increase the pay of all employees in excess of the minimum
wage, as herein set forth, by an equitable adjustment of all pay
schedules.
ARTICLE V-GENERAL LABOR PROVISIONS

CHILD LABOR

SECTION 1. 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. In any State an em-
ployer shall be deemed to have complied with this provision as to
age if he shall have on file a certificate or permit duly signed by the
Authority in such State empowered to issue employment or age cer-
tificates or permits showing that the employee is of the required age.

PROVISIONS FROM THE ACT

SEC. 2. In compliance with Section 7 (a) of the Act it is provided:
(a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor or their agents in the designation of such representatives or
in self-organization or in 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 re-
quired 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

SEC. 3. No employer shall reclassify employees or duties of occu-
pations performed by employees or engage in any other subterfuge
for the purpose of defeating the purposes or provisions of the Act or
of this Code.
STANDARDS FOR SAFETY AND HEALTH
SEC. 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.







52

STATE LAWS

SEC. 5. No provision in this Code shall supersede any State or
Federal law which imposes on employers more stringent require-
ments as to age of employees, wages, hours of work, or as to safety
health, or sanitary or general working conditions, than are imposed
by this Code.
POSTING

SEC. 6. All employers shall post and keep posted complete copies
of the wage, hour, and General Labor Provisions of this Code in
conspicuous places accessible to employees.

ARTICLE VI-ORGANIZATION AND CONSTITUTION OF CODE AUTHORITY

ADMINISTRATION

SECTION 1. A Code Authority is hereby established to cooperate
with the Administrator in the administration of this Code and shall
consist of the membership of the Board of Directors of the Institute.
The Administrator, in his discretion, may appoint not more than
three additional members without vote, and without compensation
from the Industry, to serve for such period of time, and to represent
the Administrator or such group or groups as he may designate.
SEC. 2. 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 provide 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 re-
quire an appropriate modification in the method of selection of
the Code Authority.
POWERS AND DUTIES
SEC. 3. The Code Authority shall have the following further
powers and duties, the exercise of which shall be subject to the right
of the Administrator, on review, to disapprove of any action taken
by the Code Authority:
(a) To adopt bylaws and rules and regulations for its procedure
and for the administration and enforcement of the Code.
(b) To use the secretary or any other person, association, or
group, as it may deem proper, for the carrying out of its activities
provided for herein, provided that nothing herein shall relieve the
Code Authority 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.
(c) To make investigations as to the functioning and observance of
any of the provisions of this Code, at its own instance or on com-
plaint by any person affected, and report the same to the Ad-
ministrator.
(d) 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 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
obligation to furnish reports to any governmental agency. Such
data shall be compiled by the Secretary in a form which will not
reveal the data of an individual member of the Industry and in this
form may be made available to the members of the industry as
directed by the Code Authority, unless otherwise directed by the
Administrator.
(e) To collect statistics of sales, unfilled orders, production, stocks
on hand, shipments, hours of labor, rates of pay, number of em-
ployees, prices, and such other data as may be required by the
Administrator, such data to be compiled by the Secretary in a form
which will not reveal the data of an individual member of the
industry.
(f) Upon termination of the activities of the Code Authority all
data and statistics then on file with the Secretary which were sub-
mitted by any member of the industry shall be returned to such
member upon request unless the disposition of such data and statis-
tics is otherwise directed by the Administrator.
(g) To allocate assessments among the divisional groups of the
Institute and to collect from those members of the Industry par-
ticipating in the activities of the Code Authority an equitable and
proportionate share of the reasonable expenses of maintaining the
Code Authority and its activities.
(h) 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, including stabili-
zation of employment.
SEC. 4. Each divisional group of the Industry shall have its own
separate and distinct planning committee, known as the Division
Executive Committee, and such executive committee shall place in
writing all of its decisions and recommendations to the Code Au-
thority for approval at least fifteen (15) days before such decisions
and recommendations are to become effective. If the Code Authority
disapproves or fails either to approve or disapprove such decisions
or recommendations within fifteen (15) days after their receipt by
the Code Authority, the Division Executive Committee shall be en-
titled to present its recommendations to the Administrator for his
approval, if the approval of the Administrator is required; and if no
such approval is required such division may of its own election carry
out the decisions and recommendations of its Executive Committee,
all to the end that each division shall be independent and self-gov-
erning in all matters relating exclusively to such division.
SEC. 5. Any action of the Code Authority or of any agency thereof,
which the Administrator may deem unfair or improper, or contrary
to the public interest, or which may be reported to him by any
interested parties as unfair to any private interest, improper or
contrary to the public interest, may be suspended for such period of









time, not to exceed thirty (30) days, as he may deem necessary to
afford an opportunity for investigation into such action. Further
action by the Code Authority or of any agency thereof may be held
in abeyance by the Administrator pending his final determination
of the matter under investigation.
SEC. 6. No inequitable restriction on admission to membership in
the Institute or any division thereof participating in the activities
of the Code Authority shall be imposed, and any member of the
Industry shall be eligible for membership in the Institute or group
or divisional group upon compliance with the provisions of the by-
laws relating to membership. Any member of the industry who does
not become a member of the Institute, who participates in the activi-
ties of the Code Authority shall pay to the Code Authority such
proportionate part of the cost of administration of the Code as the
Code Authority, subject to the approval of the Administrator, shall
prescribe to be fair and equitable.
SEC. 7. Nothing contained in this Article shall constitute the mem-
bers 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 Authority, exercising
reasonable diligence in the conduct of his duties hereunder, be liable
to anyone for any action or omission to act under this Code, except
for his own wilful misfeasance or nonfeasance.
ARTICLE VII-TRADE PRACTICES
The following practices shall constitute unfair methods of com-
petition for members of the industry and are prohibited:
1. The false marking or branding of any products of the industry
in any manner which has the tendency to mislead or deceive cus-
tomers or prospective customers, whether as to the grade, quality,
quantity, substance, character, nature, origin, size, finish, or prepara-
tion of any product of the industry or otherwise.
2. The making, or causing, or knowingly -permitting to be made
or published any false, materially inaccurate or deceptive statement
by way of advertisement or otherwise, whether concerning the-grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the industry or the credit terms,
values, policies, or services of any member of the industry, or other-
wise, having the tendency or capacity to mislead or deceive customers
or prospective customers.
3. Maliciously inducing or attempting to induce the breach of an
existing oral or written contract between a competitor and his
customer or source of supply, or interfering with or obstructing the
performance of any such contractual duties or services.
4. The defamation of competitors by falsely imputing to them
dishonorable conduct, inability to perform a contract, questionable
credit standing, or by other false representations or by the false
disparagement of the grade or quality of their goods.
5. Unfairly procuring any information concerning the business of
a member which is properly regarded by him as a trade secret or
confidential within his organization, other than information relating
to a violation of any provisions of the Code.








6. To give, permit to be given, or directly offer to give, anything
of value for the purpose of influencing or rewarding the action of
any employee, agent or representative 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 em-
ployer, principal or party. Commercial bribery provisions 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.
Paying, allowing, or promising to any purchaser or prospective
purchaser or to any officer, employee, agent, or representative of any
such purchaser or prospective purchaser, any payment of money or
other remuneration directly or indirectly, and. or the splitting or
otherwise sharing the commission Dr compensation of a member's
salesman or agent or other employee with anyone, and, or the grant-
ing of rebates, credits, discounts, adjustments or similar concessions,
other than specified in the contract of sale and permitted by the Code.
7. Noncompliance with the provisions, separately or collectively,
of any merchandising plan of the division to which the member be-
longs which may be submitted through the Code Authority and ap-
proved by the Administrator, and, or in any manner conducting his
business otherwise than in open compliance with the plans he has
filed with the Secretary.
8. To inform a customer or customers, either directly or indirectly,
concerning any increases or decreases in prices or changes in dis-
counts prior to the effective date of such new prices or discounts.
9. The sale by any member of the industry of side products of
this industry or of any grades of products of this industry other
than those filed with the Code Authority, except in accordance with
a plan approved by the Executive Cormnittee and the Code Au-
thority subject, however, to the disapproval of the Administrator.
10. Using or substituting in a sale any article or material other
than that specified by the purchaser of any product, or making any
sale or contract of sale under any description which does not fully
describe such product in terms customarily used in the industry,
except that this provision shall not be construed as interfering with
the practice of the industry in packing private brands of cork
stoppers for customers such as wholesale druggists, or interfering
with the disposal of bona fide side products as provided for in
Section 9 of this Article.
11. Imitating or simulating any style, design, brand, slogan, or
advertising copy, or other means of identification solely owned by
another member of the Industry, for the purpose of misleading or
deceiving purchasers.
12. Approaching or enticing the employees of competitors with
the intent of unduly hampering, injuring, and/or embarrassing such
competitors in the conduct of their business.
13. Protecting contracts against a decrease or an increase in price
except as to the unshipped portion of such contracts.
14. Aiding or abetting any person, firm, association, or corpora-
tion in any unfair practice set forth in this Code.
15. Stating in the invoice of any product as the date thereof a
date later or earlier than the date of the shipment of such product, or








including in any invoice any product shipped on a date earlier or
later than the date of such invoice.
16. The making of any loan to a customer by any member of the
industry or his employees for the purpose of inducing the sale of
goods.
17. Making false or wilfully misleading statements or reports,
written or oral, required pursuant to any of the provisions of this
Code, or any resolution duly adopted by the Code Authority.
18. Performing any extra operations on products such as, but not
limited to, branding cork stoppers, paraffining cork stoppers, cutting
half sizes, dyeing attachments to cork stoppers, shaping cork stop-
pers, and packing in units less than the accepted standards, without
making an adequate charge to cover the cost of such operations.
19. The subnormal pricing or the granting of a reduced price,
rebate, or other concession on articles not specifically mentioned in
this Code to influence the sale of articles covered by this Code.
20. Supplying special service at reduced rates or gratis, such as
service of construction superintendent or foreman, or the loan of
equipment as an inducement toward making a sale of, materials.
21. Recommending specifications which are known to be faulty or
hazardous from a construction viewpoint or failing to caution pros-
pective purchasers against the use of such specifications; or secretly
changing specifications in figuring estimates for the purpose and
effect of misleading competitors and customers or executing any
contract other than in strict accordance with the construction speci-
fications on which the contract was estimated and secured.
22. Accepting or offering to accept securities, bonds, mortgages,
or stock as whole or part payment for material sold or work per-
formed as an inducement to obtain an order.
23. Incorrectly classifying a customer to enable said customer to
obtain a price better or terms of sale more favorable than those
stated in such member's filed price list, terms of sale, or merchan-
dising plan as hereafter provided.
24. Selling or offering for sale seconds or damaged goods at prices
lower or terms of sale more favorable than those stated in such
member's filed price list, terms of sale or merchandising plan, as
hereafter provided, and in such cases all such goods shall be plainly
marked or advertised as seconds or damaged goods.

ARTICLE VIIIL-MERCHANDISINO PLANS

SECTION 1. The Executive Committee of each divisional group of
the industry shall, with the approval of a majority of the members
of the division representing at least seventy-five percent (75%) of
the dollar volume of the division's sales for the preceding six (6)
months' period, prepare its recommendations as to the form and
provisions of a merchandising plan to be followed by each indi-
vidual member of the division concerned, which recommendations
shall require each individual member of the division in filing his
own merchandising plan to submit:
(a) His basic price list.








(b) Complete schedules of discounts, including extra quantity
discounts, if any.
(c) Terms of sale.
(d) His classification of the trade.
(e) Lists of the various grades of all products which he proposes
to offer for sale.
(f) All other conditions in any way affecting any transaction or
sale of the products of the division.
In addition to the foregoing information the Executive Com-
mittee of any Division may require the submission by the individual
members of such division of bona fide samples of each grade of the
products offered for sale, where varying the quality can be used
to obtain a competitive advantage. All such recommendations and
merchandising plans prepared by the Executive Committees shall
be capable of uniform application within the respective divisions
and shall be submitted to the Code Authority and the Administrator
for approval, and upon such approval shall have the same force and
effect as any other provision of this Code.
SEC. 2. Within fifteen (15) days after the approval by the Code
Authority and the Administrator of the Executive Committees'
recommendations and merchandising plans as provided for in Sec-
tion 1 of this Article, each individual member of the division con-
cerned shall file with the Secretary his plan for merchandising
which shall supply the information required and shall be in the
form approved by the Administrator. Such plan and any revision
thereof shall remain in force unless and until superseded by the
filing of a revised merchandising plan, revised price lists and/or
discounts. The member's original plan and each revision thereof
shall state the date on which it shall become effective, which date
shall be not less than ten (10) nor more than twenty (20) business
days after filing of same with the Secretary, and each other mem-
ber of the division may file a similar revision to take effect upon the
same date. The original merchandising plan and all revisions
thereof filed by each member shall be made available by the Sec-
retary to all other members of the division.
SEC. 3. No member shall sell any article at prices lower or dis-
counts greater or on terms more favorable than those which he has
currently on file with the Secretary.
SEC. 4. Original and revised price lists and.'or discounts filed with
the Code Authority, as hereinbefore provided, shall be available
through the Secretary to all members of the Industry who handle
a similar line of goods.
SEC. 5. No member of the industry shall sell or offer to sell under
customer's private labels, or otherwise, qualities other than those
which he has filed with the Secretary as provided in this article, or
use grading of qualities as a method of giving buyers extra value
over that provided in the member's published grades and terms.
SEO 6. Many members of the industry sell their products through
agentsi distributors, jobbers, wholesalers, and/or contractors, while
others sell their products directly to the ultimate user. In order to
prevent indirect evasion of the provisions of this Article VIII by
those members selling through agents, distributors, jobbers, whole-
salers, and/or contractors, it is hereby provided that the Executive




UNIVERSITY OF FLORIDA

SI IIII 1ili 1H 1iliii 1Ill
58 3 1262 08585 2670

Committee of each Division of this industry, subject to the approval -:
of the Code Authority and the Administrator, shall prescribe appro-: :..':
private forms of contracts to be entered into between members of the-
industry and agents, jobbers, distributors, wholesalers, and/or con : i
tractors (excluding retailers) for the distribution of the products 'i
of this industry and the observance of such prices and terms as those ':
currently filed with the Code Authority at which the manufacturer- -::iiii
sells such products. .
SEC. 7. Except as may be subsequently set forth in a specific or' .
supplementary export code for the industry, the provisions of this.
code now or hereafter adopted with regard to prices, discounts, Y
deductions, allowances, extras, commissions, or methods and/or :i
terms of sale, are not to apply to direct export sales. The term "ex- : *
port" applies to merchandise shipped to foreign countries other:
than possessions or territories of the United States.

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. -
SEC. 2. This Code, except as to provisions required by the Act",
may be modified or amended on the basis of experience or changes
in circumstances, such modification or amendments to be based uponf
application to the Administrator and such notice and hearing as I
he shall snecifv. and to become effective on annroval of the Admnmis.


trator, unless otherwise provided, and when so approved shall have
the same force and effect as any other provision of this Code. ,

ARTICLE X-MONOPOLTES :, :-

No provision of this Code shall be so applied as to permit manopo-
lies or monopolistic practices, or to eliminate, oppress, or discrim-,
inate against small enterprises. :

ARTICLE XI-PRICE INCREASES
SECTION 1. Whereas the policy of the Act to increase real pur:- ..);
chasing power will be made more difficult of consummation if prices:
of goods and services increase as rapidly as wages, it is recognized,
that price increases, except such as may be required to meet indi-,:,
vidual 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-EFFECTo E DATE
This Code shall become effective on the tenth day after
proval by the Administrator, unless otherwise provided.
Approved Code No. 199.
Registry No. 308-1-01.

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