Registry No. 324-1-02
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
FRUIT AND VEGETABLE PACKAGE
AS SUBMITTED ON AUGUST 31, 1933
WE DO OUR PART
The Code for the Fruit and Vegetable Package Manufacturing Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained .therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
UNITED STATES ',
GOVERNMENT PRINTING qFFRt
WASHINGTON: 1933 ,
For ole by the Superinteudent of Documents, Washington, D.C. I ,. Price 5 cents
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FRUIT AND VEGETABLE PACKAGE ASSOCIATION
RESOLVED that the suggested Code of Fair Competition for the
Fruit and Vegetable Package Association as drafted by the manu-
facturers signatory to this resolution, a copy of which is attached
hereto, be presented to the Emergency National Committee of the
American Veneer Package Association at their meeting in Wash-
ington, D.C., July 24, 1933, for approval and adoption; and it is
RESOLVED that G. E. Sturtevant, and are author-
ized and instructed to make such presentation at Washington, and
that their decisions as to amendments, changes, and approval of a
code for the industry as a whole shall be conclusive on the manufac-
turers signatory hereto; and it is further
RESOLVED that Mr. J. F. Proctor, author of the suggested code,
accompany the Committee as a counselor and in an advisory capacity,
and that he may act as spokesman for the Committee and the manu-
facturers signatory hereto, but shall not have a vote.
Win. E. Asplin; The Ottawa Basket Co. (0. H. Paline);
Growers Basket Co. (Geo. W. Cunningham) ; F. W.
Harrison & Son (by F. M. H.); The Creston Basket
& Veneer Co. (H. G. Knepp); The Berlin Fruit Box
Co. (L. Wm. Bensohoten); The Rocky River Basket
Co. (D. W. Wurbau) ; The Henry Prasse Co. (W. F.
Eckert); H. C. Lobis; Andover Basket Co. (A. L.
Crum) ; Carl L. Wright (Saybrock, Ohio) ; The Jef-
ferson Wood (No Co.); D. Marnhoret Basket Co.
PROPOSED CODE OF FAIR COMPETITION FOR THE FRUIT
AND VEGETABLE PACKAGE INDUSTRY
SUGGESTED TO THE INDUSTRY BY A GROUP OF FRUIT AND VEGE-
TABLE PACKAGE MANUFACTURERS REPRESENTATIVE OF THE
PRODUCTION OF FRUIT AND VEGETABLE PACKAGES IN THE
STATE OF OHIO
The function of this industry is to produce the containers required
to market crops of fresh and perishable fruits and vegetables in the
several sections of the United States.
Its operation are so entirely dependent upon weather conditions
and frost, drought, blight, and other uncontrollable factors affecting
the maturing and success or failure of the various crops, which deter-
mines the quantity of production and hours of labor, that fixing of
either uniform hours of labor, rates of compensation, and production
is difficult. This code, however, is the earnest effort of the industry
to cooperate with the President in effectuating the declared purposes
of the National Recovery Act.
This code is adopted for the purpose of reducing and relieving
unemployment, to improve standards of living, and to increase the
purchasing power of labor, to remove obstructions to the free flow of
interstate commerce; to promote the organization of industry for the
purpose of cooperative action among trade groups as well as labor
and management under adequate governmental sanction, to eliminate
unfair competitive practices, and otherwise rehabilitate industry.
This code is not designed to, nor shall it be operated so as to promote
monopoly, or to eliminate, suppress, or discriminate against small
(A) "Fruit and Vegetable Package Industry as used herein is
defined to include the manufacture and/or assembly of (1) Berry
Boxes, (2) Tills, (3) Hampers, (4) Round Stave Baskets (bushel
baskets), (5) Climax Baskets, (6) Splint Baskets (market baskets
and/or Diamond Weave and/or Square Braid and/or Slat Baskets),
(7) Citrus Boxes, (8) Crates (fruit or vegetable), (9) Fruit Boxes,
(10) Basket and Crate Material, (11) Straight-Sided Baskets, with
wood or paper as the base material.
(B) Divisions as used herein refers to the several parts of the
fruit and vegetable package industry, which are (or may be) estab-
lished and are (or may be) defined in the division supplemental
codes as provided in Article VII hereof.
(C) Members and/or members of the industry as used herein is
defined to mean (1) member of the Fruit and Vegetable Package
Association. (2) Members of the industry not members of the Asso-
ciation who contribute to the support of the formulation and admin-
istration of this code.
(D) Employer as used herein is defined to mean every person
promoting, or actively engaged in the manufacture and/or assembly
of the products of the fruit and vegetable package industry as herein
ARTICLE III-FINANCIAL SUPPORT
The members of the Association shall give their financial support
by the payment of dues. Those who are members of the industry
but not of the Association shall, for the services rendered to them
in accordance with this code, pay such service charges as may be
determined by the Emergency National Committee, which shall be
equitable and reasonable, including only charges based upon the
formulation and administration of this code.
Participation in this code, and any subsequent revision of or addi-
tions to the code, through membership in the Association or any of
its affiliated subdivisions or any affiliated subdivision which subse-
quently may be formed, shall be open to any person, partnership, or
corporation in the fruit and vegetable package industry who accepts
his or its share of the cost and responsibility, as well as the benefit,
of such participation.
ARTICLE V-DivisioNS OF INDUSTRY
(A) For the purpose of the administration of this code, the fruit
and vegetable package industry shall be. divided into divisions by
type of product as set forth below. Each division shall designate or
establish its own administrative agency or agencies.
(B) Each division shall be independent and self-governing in
respect to all conditions and problems relating exclusively to said
(C) Proposals in respect to matters affecting more than one divi-
sion may be initiated by any division, and shall be submitted for
consideration to the Emergency National Committee of the Fruit
and Vegetable Package Industry, hereinafter described, and its
determination shall be binding upon said division and all other
divisions affected thereby.
1. Manufacturers of Berry Boxes and Tills.
2. Hampers and Bushel Baskets.
3. Climax Baskets.
4. Diamond Weave and/or Square Braid,
Slab and Straight Sided Baskets.
5. Manufacturers of Citrus Boxes, Crates, and Fruit Boxes.
(E) Disagreements arising between members of the same or differ-
ent subdivisions shall be settled by arbitration.
(F) Each of the above divisions, and any others which may sub-
sequently be formed within the fruit and vegetable package indus-
try, shall set up an Executive Committee for the purpose of
administering the provisions, to consider proposals for amendments
thereof and exceptions thereto, and otherwise to carry out within
the division the purposes of the National Industrial Recovery Act.
ARTICLE VI-RULES AND REGULATIONS
(A) To effectuate the general purpose of this code, the Emergency
National Committee is hereby authorized and directed to make such
additional rules and regulations as may be necessary, and are em-
powered to enforce the provisions of this code and any amendments
thereto which are prescribed by the National Industrial Recovery
(B) If a subdivision does not concur in this code or fails to per-
form its obligations hereunder, the Emergency National Committee,
in conjunction with the Coordinator of the fruit and vegetable pack-
age industry, hereinafter described, is hereby empowered to adopt
a code for the division and may provide for the administration of
ARTICLE VII-DIvisioN REGULATIONS
Each of the divisions and others which may subsequently be
formed shall promptly undertake the formulation of a code of fair
competition providing regulations and trade practice rules covering
conditions peculiar to its division. Such codes shall conform to this
code of the industry, and shall be subject to the approval of the
Emergency National Committee.
ARTICLE VIII-EMERGENCY NATIONAL COMMITTEE
(A) There shall be an Emergency National Committee of the fruit
and vegetable package industry to consist, of a representative or rep-
resentatives of each division, an equal number to be selected by
each of said divisions.
(B) The Emergency National Committee shall be the general
planning and coordinating agency for the industry. Its members
selected by established divisions shall be empowered by said divisions
to act for them conclusively in respect to all matters before the com-
mittee. An agendum of all matters to be settled at any meeting of
the Emergency National Committee shall be mailed to each member
of said committee thirty (30) days prior to any meeting of the
Emergency National Committee.
(C) The Emergency National Committee may require from time
to time, and shall be furnished, such reports as in its judgment may
be necessary to adequately advise it of the administration and en-
forcement of this code, and upon complaint of interested parties,
or upon its own initiative, shall make or cause to be made by the
Coordinator such inquiry and investigation into the operation of
the code as may be necessary and may designate such agents as it
(D) In the interests of expeditious administration and enforce-
ment of this code, the Emergency National Committee shall set up
an Executive Committee composed of five members of said Emer-
gency National Committee. The Executive Committee shall act
for the industry in conferring with the President or his agents on
all matters pertaining to the code and in otherwise administering its
provisions, including cooperating with similar committees of other
industries to the end of offering a balanced national economy.
There shall be a Coordinator of the Fruit and Vegetable Package
Association elected by a majority vote of the members present at any
regular or special meeting. The Association shall at the time of
such election enter into a contract with such Coordinator for a period
of two years, which contract shall provide for the compensation to
be paid to the Coordinator and shall provide for the duties to be
performed by, and the powers of the Coordinator.
The Coordinator shall be the chief administrative officer of the
Association and it shall be his general duty to promote cooperation
among the members and to promote the activities of the Association
to the end that the public interest, the interest of labor, and the inter-
est of the fruit and vegetable package industry be served to the great-
est possible extent.
The Coordinator shall perform the clerical duties of the Associa-
tion; shall obtain and disseminate all data and statistics provided for
herein, and may make recommendations relative thereto; shall re-
ceive complaints against any members of the fruit and vegetable
package industry and obtain and receive evidence relative to such
complaints and shall treat such complaints as provided for herein
and shall advise the members on the proper procedure to be followed
as outlined by the regulations, trade practice rules, and the Federal
laws and regulations relating to the industry.
The Coordinator shall in all of his actions be entirely impartial
to the members and shall so conduct the administrative work so that
the best interests of the industry be served as a whole.
The Coordinator shall encourage new memberships in the Asso-
ciation and shall use his influence in obtaining, so far as is possible,
membership in the Association of all fruit and vegetable 'package
ARTICLE X-INDUSTRY REGULATIONS
(Applying to all divisions as distinct from Division Regulations
which may differ from Division to Division.)
SECTION 1. Labor Provisions.-(A) Each employer acknowledges
the right of employees to organize and bargain collectively through
representatives of their own choosing and agrees that employees shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in 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) Each employer agrees that no employee or no one seeking
employment shall be required as a condition of employment, to join
any union or refrain from joining, organizing, or assisting a labor
organization of his own choosing.
(C) Each employer agrees to comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President pursuant to the provisions
of the National Recovery Act.
(D) On and after the effective date of this code the minimum
wage.that shall be paid by any employer to any of its employees
and/or labor, except learners, during a thirty (30) day apprentice-
ship, and outside employees shall be as shown in schedule A attached
hereto and made specifically a part hereof.
(E) On and after the effective date of this code no employer shall
operate on a schedule of hours of labor for their employees-except
repair-shop crews, engineers, firemen, office, supervisory staff, ship-
ping, watching, and outside crews in excess of the maximum hours
as shown on schedule B attached hereto and specifically a part
(F) On and after the effective date of this code no employer shall
pay any employee a lesser wage than that established in schedule A
of this article regardless of whether the employee's compensation is
otherwise based on a time rate or upon a piecework performance.
MINIMUM WAGES OF LABOR UNDER ARTICLE X, CODE OF FAIR
COMPETITION FOR THE FRUIT AND VEGETABLE PACKAGE
Persons under sixteen (16) years of age shall not be employed in any factory
or assembly plant.
Minimum rates of pay for workers on piecework or on contract basis shall be
equal in fact to the minimum hourly and weekly rates of this schedule.
Unskilled Labor-Southern Sections.-Thirty cents ($.30) per hour, or twelve
dollars ($12.00) per week for a forty (40) hour week or fourteen dollars and
forty cents ($14.40) for a forty-eight (48) hour week.
Unskilled Labor-Northern Sections.-32.5 cents per hour, or thirteen dollars
($13.00) per week for a forty (40) hour week or fifteen dollars and sixty cents
($15.60) for a forty-eight (48) hour week.
En.gineers-Mech.anics, Lathe Operators, and Supervisory Staff-Southrsl
Sections.-37.5 cents per hour, or fifteen dollars ($15.00) per week for a forty
(40) hour week or eighteen dollars ($18.00) per week for a forty-eight (48)
Engineers-Mechanics, Lathe Operators, and Supervisory Staff-Northern
Sections.--40 cents per hour, or sixteen dollars ($16.00) per week for a forty
(40) hour week or nineteen dollars and twenty cents ($19.20) for a forty-eight
(48) hour week.
Firemen-Southern Sections.--32.5 cents per hour, or thirteen dollars ($13.00)
per week for a forty (40) hour week or fifteen dollars and sixty cents ($15.60)
for a forty-eight (48) hour week.
Firemen-Northern Sections.--34.5 cents per hour, or thirteen dollars and
eighty cents ($13.80) per week for a forty (40) hour week or sixteen dollars
and fifty-six cents ($16.56) for a forty-eight (48) hour week.
Cleri-al or Office Workers-Southern Sections.-Fourteen dollars ($14.00) per
week for a forty-eight (48) hour week.
Clerical or Office Workers-Northern Sections.-Fifteen dollars ($15.00) per
week for a forty-eight (48) hour week.
MAXIMUM HOURS OF EMPLOYMENT OF LABOR, UNDER ARTICLE X,
CODE OF FAIR COMPETITION FOR THE FRUIT AND VEGETABLE
PACKAGE INDUSTRY, SUBJECT TO THE FOLLOWING EXCEPTIONS
1. Executives, Superrisory Staffs, Shipping Crews, Office Workers, Engineers,
Firemen, and Repair Crecxs.-(A) Insofar as is practical, the maximum hours
of labor per person shall be forty (40) hours per week. However, if in order
to provide for the pressing requirements of the fruit, vegetable, or other agricul-
tural or perishable foods or industrial needs of basket and crate users, addi-
tional hours of labor are necessary, then the number of hours may be increased
during the period of the emergency, provided that in no event shall the total
hours of labor in any fifty-two (52) weeks' period exceed an average of forty-
four (44) hours weekly.
SEc. 2. Cost Pro.isiotns.-(A) E-ch member of the industry agrees to use in
his business a uniform cost-finding method. This method shall be the method
as adopted by the Emergency National Committee after being approved by a
committee of members of the aforesaid committee appointed for the purpose
of conferring with certified public accountants, who shall be employed di-
rectly by the Association.
(B) Each member of the industry shall put into use in his business the
uniform cost-finding method as adopted within ninety (90) days after the
approval of the code by the Government.
(C) Each member of the industry shall maintain in practice the aforesaid
uniform cost-finding method for a period of two years after the date of its
establishment, and thereafter, unless at the end of the two years the method is
changed by a majority vote of the members of the Association.
(D) A fair average cost, to be determined in accordance with Section 3
of the industry regulations for the members of the industry, shall be set up
in accordance with the aforesaid uniform cost-finding method by the certified
public accountants establishing the aforesaid cost-finding method; and after
its approval by the Emergency National Committee, said fair average cost, and
no other, shall be used by each member in arriving at his selling price.
SEo. 3. Agreement Not to Sell Below Cost, and Definition of Cost.-(A) No
member of the industry shall sell any of his manufactured products and/or any
accessory and/or part applied thereto at a price below cost as determined by
the adopted uniform cost-finding method. Nor shall any member dispose of
gratis to any distributive agency, parts, or accessories used in the construc-
tion of any of his products.
(B) The elements entering into cost shall include material, labor, factory
overhead, interest on plant investment, selling, and administrative expenses.
(C) The determination of a fair average cost for each product manufactured
shall be made in accordance with paragraph D of this Section.
(D) Each member of the industry shall submit to the accountants appointed
a list of his products, showing opposite each item thereon a figure represent-
ing cost of material, labor, and factory overhead accumulated through the
medium of his own cost method. That figure shall include interest on plant
investment applied on the same basis as factory overhead; from this informa-
tion average costs for each item of product of similar kinds and sizes made by
the various members will be established.
(E) To the average cost so established a percentage shall be added, pro-
viding for selling and administrative expenses, which shall not include trade
discounts. This percentage shall be determined by the Emergency National
Committee in conjunction with the appointed accountants and shall be based
on a fair cost to the industry of administrative and selling expenses. The
final cost of each item of product thus established shall be the minimum price
for which this item shall be sold.
(F) The final costs of each item of product to be used as the minimum sales
price shall be adjusted monthly until stabilization of items of cost occurs.
IG) Any member of the industry that is not equipped with an acceptable
method for determining cost, or is in the process of installing such a method,
shall be governed by the average cost in the balance of the industry until such
time as his cost method is acceptable for the determination of such average.
SEC. 4. Method of Prioing, Discounts, rind Terms.-Attached hereto, made a
part hereof, and marked "schedule C" is the prescribed form and method of
arriving at the ultimate price to the consumer of all the products together
with a scale of discounts and terms. Each member of the industry agrees to
use the said form and method, scale of discounts and terms and no other, in
arriving at his list prices, discounts, and terms.
SEC. 5. Classification of Distributive Agencies.-(A) Attached hereto, made
a part hereof, and marked schedule D ", is a set of definitions providing for
the classification of the various type of distributive agencies through which
the industry markets its products. Each member of the industry agrees to. use
the said definitions and no others in the determination of the discounts and
terms that any distributive agency shall be granted, said discounts and terms
to be in accordance with the scale of uniform discounts and terms as provided
in Section 4 hereof.
(B) In the event that a question arises regarding the qualification of a
distributive agent for any classification, each member of the industry agrees
to be governed by the decision of the Emergency National Committee and in
accordance with the rules and regulations governing the arbitration of trade
(C) Each member of the industry before negotiating for the business of any
distributive agency not classified shall request a classification from the
Association, which classification shall be in accord with the definitions as
(D) Upon application to the Association for classification of a distributive
agency the applicant shall furnish such data as is prescribed by the Coordi-
nator with the concurrence of the Emergency National Committee. The Co-
ordinator upon receipt of an application for classification or reclassification
of a distributive agency shall make such investigations as are necessary and
with the accumulated data place the application before the Emergency Na-
tional Committee for decision. The Coordinator of the Association shall im-
mediately notify the members of the classification or reclassification of
(E) No member other than the applying member or members shall sell,
contract with, or negotiate with a prospective agency until thirty (30) days
after notification of the said agency classification by the Association.
UNDER SECTION 4, ARTICLE X, CODE OF FAIR COMPETITION FOR
THE FRUIT AND VEGETABLE PACKAGE INDUSTRY
(A) To determine his ultimate price to the consumer (the definition of con-
sumer applying as herein provided), each member of the industry shall add to
cost, as developed by the cost-finding method mentioned in Section 3, Article X
herein, a sufficient amount which when the greatest trade discount (as shown
in the uniform scale of discounts herein set forth) is applied against the result-
ing total the net selling price shall not be less than the minimum sales price
developed by the aforesaid cost-finding method.
(B) The list price as established in paragraph A of this exhibit shall be the
price that shall be quoted to the consumer. Quotations to consumers and any
other of the various classifications of trade shall be based on the list price and
shall be in accord with the scale of discounts and terms as herein provided and
Consumer----..... ---_--.------------------ Net List.
Jobber ---- ------------------------------- List Less 15%.
Dealer ----------_ --_-----------------_-_- List Less 10%.
Farmers Cooperative Assn. or Farm Bureau----- List Less 5%.
(D) Delivery terms:
On minimum carload or over the freight may be absorbed by the
On minimum truckload (the minimum shall be one hundred (100)
dozen) the freight may be absorbed by the seller.
Less than minimum carload or truckload shall be sold F.O.B. the
(E) The terms of sale by all members of the industry shall allow not more
than two percent (2%) discount for cash within ten days, and payment for
invoices not paid within ten days shall be net.
(F) The price list of each member of the industry shall provide that splint
baskets shall be quoted by the dozen, till and berry baskets by the thousand
(1,000), crates by the hundred (100), solid covers by the hundred (100),
slatted covers by the dozen, crate dividers by the piece or hundred (100),
hampers by the Climax baskets by the
UNDER SECTION 5, ARTICLE X, CODE OF FAIR COMPETITION FOR
THE FRUIT AND VEGETABLE PACKAGE INDUSTRY, CLASSIFICA-
TION OF DISTRIBUTIVE AGENCIES
(A) A consumer of fruit and vegetable packages or such other products sold
by the fruit and vegetable package industry, is any individual, firm, or corpora-
tion that buys for his or its own use, as a receptacle for his own grown or
(B) A dealer in fruit and vegetable packages or such other products sold
by the fruit and vegetable package industry is any individual, firm, or corpora-
tion that buys to sell and whose business is designed solely for the selling of
goods to consumers and for no other use. The definition of consumer is under-
stood to be as given herein.
(C) A jobber of fruit and vegetable packages or such other products sold
by the fruit and vegetable package industry is any individual, firm, or corpora-
tion that buys to sell and whose business is designed solely for the selling of
goods to dealers and for no other use. The definition of dealer is understood
to be as given herein.
(D) An organized farm cooperative association or a farm bureau is defined
as a group of consumers brought together for the purpose of collective buying.
The definition of consumer is understood to be as previously outlined.
UNDER ARTICLE X, DIVISION REGULATIONS, SECTION 6, STATISTICS
(A) Each member of the industry shall mail daily to the private agency
selected a report of all orders booked the previous day for future delivery,
showing full identification of the product, quantity, and price; also complete
details of every sale made as evidenced by a copy of the invoice; also a copy
of all credit memos and complete information regarding all pending or subse-
quent rebates or adjustments in price. The aforesaid agency shall check these
records against the list prices as published by the members and the uniform
scale of discounts and terms as approved by the Association and in accordance
with the various classifications of distributive agencies as approved by the
(B) Each member of the industry shall mail the aforesaid agency, within
ten (10) days after the first of each month, a report of the previous month's
total sales of each product sold, the total amount of all invoices for each prod-
uct, the total production of each product, and inventory of the finished stock
of each product on hand, and unfilled orders on hand; all in accordance with
the various classifications of products as approved by the Association and on
standard forms as are furnished.
(C) Each member shall mail the aforesaid agency within ten (10) days
after the first of each month a report of the previous month's ratio of produc-
tion to production capacity and a report showing costs of production (includ-
ing hours of labor, number of employees, rates of pay) in detail on standard
forms furnished for the purpose in accordance with the uniform methods as
approved by the Association.
(D) Each member of the industry shall furnish the aforesaid agency and
the Coordinator of the Association, within ten (10) days after Governmental
approval of the code, a copy of his current price list and catalog showing a
complete description and price of every product manufactured for sale and the
date of their effectiveness. No member of the industry shall publish and/or
distribute to the trade any price list other than of the type and method of pric-
ing than is approved by the Association, and until after seven (7) days notice,
accompanied by exhibits, to the Coordinator and the aforesaid agency.
(E) The aforesaid" agency shall check the daily reports of sales of each
member against his published list price as furnished the aforesaid agency and
the Coordinator and against the classifications of distributive agencies, scale of
discounts, and terms as approved by the Association.
(F) The aforesaid agency shall chart and tabulate the monthly records of
production, ratio of production to production capacity, costs, and records as
covered in paragraph B and/or C of this schedule and such other statistics as
may be advantageously used in the elimination of waste in production and
distribution, and mail monthly to the administrative officer of the Association
a compilation of such figures, omitting in every instance the identity of the
various members contributing the data.
(G) The identity of the contributor of any and all data as represented
by copies of invoices, credit memoranda, or any other figures reported as pro-
vided in paragraphs A, B, and C of this schedule shall be held by the afore-
said agency as confidential and shall not be revealed to any other member
or used by the aforesaid agency for any other purpose than that outlined in
paragraphs E and/or F of this Article, except in such individual instances as
the reports give evidence of violation of the regulations and/or trade prac-
tices, and then only if it be necessary to the enforcement of the adherence to
the regulations, ethics, and/or codes, or the treatment of violations, except
that this data shall be available to the President or his agents to effectuate
the purposes of the National Industrial Recovery Act.
SEC. 6. Statistics.-(A) To provide the knowledge necessary for the intelli-
gent, economical, and profitable operation of business, an accurate basis for
control of production, the data necessary for the administering and enforce-
ment of the provisions of this code and the data necessary to adequately advise
the President of "the extent of observance of the provisions of this code and
of the extent to which the declared policy of the National Industrial Recovery
Act as stated herein is being effectuated, each member of the industry shall
make such reports as shown in Schedule E attached hereto and specifically
made a part hereof.
(B) Except as otherwise provided in the National Industrial Recovery Act,
all statistical data filed in accordance with Schedule E shall be confidential
and the data of one employer shall not be revealed to any other employer
except for the purpose of enforcing the provisions of this code.
(C) To provide that the confidential data of one employer shall not be
revealed to any other employer, all reports and statistics shall be collected,
compiled, and disseminated by a disinterested private agency separate from
the Association or its offices, such as a firm of certified public accountants
whose ethics regarding the revealing of confidential information are the
strictest and are backed by precedence.
SEC. 7. En.forcemenr t and Treatment of Code.-(A) This code, on its effective
date shall constitute the standards by which each member of the industry shall
conduct his business.
(B) In the event of violation of any regulation or trade practice rule or any
part of the code, a report shall be sent to the Coordinator by any interested
party. The Coordinator shall immediately advise the Administrative Officer of
the division in which the violation occurred: who shall immediately institute an
investigation and report his findings to the Executive Committee of his division.
(C) In the event the original complaint or any other violation be sub-
stantiated, the Division Executive Committee. if it be a divisional matter, or the
Executive Committee of the Emergency National Committee if it be a matter
between Divisions, shall proceed in accordance with the provisions set forth in
paragraph G of this Section 7.
(Di In the event that any of the daily or monthly reports, as provided in
Schedule E. of any employer of the industry indicate to the agency (provided
for in Section 6) violations of this code, the aforesaid agency shall request a
certification of that report. The employer shall respond to said request within
three (3) days after receipt of such request. Should the certified report sub-
stantiate a violation, the aforesaid agency shall immediately notify the Coordina-
tor who will proceed in accordance with paragraph B of this Section.
(E) The information required to be furnished the Association through the
aforesaid agency in the form of daily reports and monthly reports for checking
compilation and distribution by the Association must be authentic and accepted
as such by the members of the industry. To attain the highest degree of
accuracy the Association may assume that the member or members who are the
original source of information has furnished a true, full, and accurate disclosure
of every fact essential to a complete understanding of the matter which the
information purports to have covered. Owing to the relations of mutual con-
fidence and trust involved herein, the peculiar circumstances connected with the
subject matter hereof and the importance to all persons connected herewith
that information be correct each member agrees that in the event any part of
the information which the member shall hereafter transmit to the Association
for checking purposes and for distribution as herein outlined shall be erroneous,
the member shall pay to its Division a sum of not less than fifty dollars ($50.00)
and not greater than five hundred dollars ($500.00) in each instance. This pro-
vision shall likewise apply to every intentional omission by the member to
furnish the required information in Schedule E. Such sum as shall be paid is
hereby agreed to equal the damages actually caused by such erroneous informa-
tion or the withholding of information and such damages are now liquidated at
that amount and shall in no sense be deemed a penalty.
(F) Any violation of any part of the code and/or trade practice rules shall
be deemed to have endangered the economic stability of the industry, its em-
ployees and all persons connected with it, damaged the Association and its
members and to be against the public interest. Owing to the relations of
mutual confidence and trust herein, the peculiar circumstances connected with
the industry that the code and/or trade practice rules be adhered to, each
member agrees that in the event it violates the said code and/or trade prac-
tice rules, he shall pay to its Division, except in case of a violation referred to
in paragraph E of this Section, a sum of not less than five hundred dollars
($500.00) and not greater than five thousand dollars ($5,000.00) in each
instance. Such sum as shall be paid is hereby agreed to equal the damages
actually caused by such violation and such damages as are assessed under para-
graph G hereof, are now liquidated at that amount and shall, in no sense, be
deemed a penalty.
(G) The sum necessary to liquidate damages mentioned in paragraph E
and/or F of this Section and the method and terms of payment thereof shall
be fixed by the Division Executive Committee in accordance with paragraph E
and/or F of this Section. Upon its decision the Division Executive Committee
shall render such decision, in writing, to the Division Administrative Officer
who shall, officially and in writing, notify the offending member and call for
payment in accordance with the said decision.
(H) Each member of the industry or Division shall be afforded a fair and
impartial opportunity to be heard and to produce evidence in its behalf before
the Executive Committee or its agent or representative or the Arbitration
(I) No member of the industry shall be deprived of the privilege of appeal-
ing the question of any violation or the damage assessed therefore, through the
Division Administrative Officer or the Coordinator of the Association, to a
board of arbitration, which each member agrees to be bound by and whose de-
cision shall be conclusive on the member. Said board of arbitration shall be
made up of one (1) member of the Division or Association to be chosen by
the appealing member, one (1) member of the Division or Association to be
chosen by the Executive Committee (which member shall not be a member of
the Executive Committee or Emergency National Committee) and the Division
Administrative Officer if it be a Division matter or the Coordinator of the
Association if it be a matter between Divisions. The decision of the board of
arbitration shall be rendered in writing to the Division Administrative Officer
or Coordinator and he shall immediately forward a written copy of the decision
to the appealing member.
(J) The provisions for arbitration set forth in paragraph I herein shall be
exclusive and shall bar any proceeding at law or in equity in any court of
any jurisdiction by any member of the industry and by the Association or any
Division thereof, except that the Association or any Division thereof shall not
be barred thereby from proceeding in equity or in any court of competent juris-
diction to compel compliance with code and,or trade practice rules, nor shall
any member or the Association or Division thereof be barred from any pro-
ceeding at law or equity to compel arbitration hereunder.
(K) The Association or any Division thereof may by its agents, employees,
and accountants have access to and may examine from time to time the books,
records, papers, and files of each member in order to certify, compare, and
procure the information required to be given and the facts required to be
divulged by each member of the industry. The Association or any Division
thereof may, under such regulations as its Coordinator shall prescribe, subject
to the approval of the Association Executive Committee, which each member
of the industry agrees to be bound by, cause its agents, employees, and experts
from time to time to examine the products, shipments, factories, and ware-
houses of each member of the industry and its books, records, and papers to
ascertain that each member is complying with this agreement Each member
of the industry hereby grants to the Association or any Division thereof such
further visitorial powers as shall be reasonable and necessary for the purposes
of this code. All reports hereunder shall be confidential and made only to the
Coordinator of the Association or agency as provided in Section 7 herein.
ART. XI. Production.-Weather conditions, frost, drought, blight, and the
degree of success of crops of perishable fruits and vegetables and other uncon-
trollable factors enter so largely into the determination of the number of pack-
ages required as to negative rigid rules for the quantities to be produced. How-
ever, as far as is practical the operating time of the labor in any employer's
factory or assembly plant shall not exceed two (2) shifts of forty (40) hours
a week. However, if in order to provide for the emergency needs of the
perishable food growers, additional operating time is necessary, then the num-
ber of hours may be increased during the emergency to two (2) shifts of forty-
eight (48) hours per week.
ART. XII. Trade Practice Rules.--Rule 1: The making or circulating in any
manner of false or deceptive statements concerning the financial standing,
business methods, policies, or products of a competitor is an unfair method of
Rule 2: Obtaining information from a competitor in relation to his business,
product, or relations with the trade by any impersonation or by any false or
misleading statement, or misrepresentation, or by any form of espionage, is an
unfair method of competition.
Rule 3: The selling of goods below cost with the intent or with the effect of
injuring a competitor, and where the effect may tend to create a monopoly or
to unreasonably restrain trade, is an unfair method of competition. Cost is
defined as including all cost to the time of the delivery to the buyer, and in-
cludes material, labor, and overhead, as well as all charges, such as interest,
salesmen's commission, depreciation, depletion, and all reserves which may
lawfully be set up on the books of the company.
Rule 4: The secret giving or offering to give, directly or indirectly, without
other consideration therefore, money or anything of value to agents, employees
or representatives of customers or prospective customers, without the knowl-
edge or consent of their employers, as an inducement to cause their employers
to purchase or to contract for the purchase of fruit and vegetable package
products from the maker of such gift or offer, or his agents, or to influence
such employers to refrain from dealing or contracting to deal with competitors
is an unfair method of competition.
Rule 5: It is an unfair method of competition for any person engaged in the
fruit and vegetable package industry to either directly or indirectly discrimi-
nate in price between different purchasers of fruit and vegetable package
products where the purpose or effect of such discrimination may tend to create
a monopoly or to permit unfair methods of competition, provided that nothing
herein contained shall prevent discrimination in price between purchasers of
the same classes on account of the differences in the grade, quantity, or quality
of fruit and vegetable package products sold, or that makes only due allowance
for difference in the cost of selling or different commodities, made in good
faith to meet competition, and provided further that nothing herein contained
shall prevent persons engaged in the fruit and vegetable package industry from
selecting their own customers in bona fide transactions and not in restraint of
Rule 6: Any willful attempt to induce a breach of any existing bona fide
contract or any wilful attempt to prevent the performance of any contractural
duty under any bona fide contract for the sale or purchase of fruit and vege-
table packages or an allied product is an unfair method of competition.
Rule 7: The making or branding of fruit and vegetable packages or any
allied product or any misrepresentation in connection with the sale of such
materials for the purpose or with the effect of misleading or deceiving pur-
chasers with respect to the quantity, quality, grade, substance, origin, is an
unfair method of competition.
Rule 8: The paynIent or allowance of secret rebates, refunds, credits, un-
earned discounts, whether in the form of money, or gifts or otherwise, the
acceptance of securities at more than true market value or otherwise, as a
means of effecting or concealing price discrimination, or extending to certain
purchasers special services or privileges, including discriminatory allowance
for goods of the purchaser or for services, not extended to all purchasers under
like terms and conditions, with the intent or with the effect of injuring a
competitor, or where the effect may be to substantially lessen competition or
tend to create a monopoly or to unreasonably restrain trade, is an unfair
method of competition.
Rule 9: Any statement, written or oral, or any act constituting a false dis-
paragement of the measure, substance, strength, and grade or quality of a
competitor's goods or deceptive tests or any statement, written or oral, or any
act constituting a false statement as to the prices a competitor is quoting is an
unfair method of competition.
Rule 10: Where a member of the industry has a contract with a customer
for a certain period of time and because of rumors or statements the member
feels that he might lose his position of favor with his customer and that he
might not be able to do business with the customer after the contract expires,
he shall not change the terms of the contract to prejudice himself or the other
members of the industry until such time as he has given the other members
of the industry an opportunity to advise him as to the true state of affairs,
in order that no buyer shall play one member of the industry against the other
and thus promote unfair methods of competition.
Rule 11: The making of false reports of capacity, production, sales, orders,
or shipments is an unfair method of competition.
Rule 12: Interference with a competitor by enticing employees from his
employment is an unfair method of competition.
Rule 13: The shipment or delivery of fruit and vegetable package products
which does not reasonably conform to the standard of samples submitted or
representations made prior to securing of the order, unless with the consent
of the purchaser to a substitution prior to shipment, is an unfair method of
Rule 14: The entering into contracts for fruit and vegetable packages or
allied products with purchasers without actual obligations on the part of the
purchaser for a specified quantity or quality and/or merely for the purpose
of securing to the buyer a special price which in effect discriminates between
purchasers, and tends to unreasonably restrain trade, and injure competitors
is condemned as an unfair method of competition.
Rule 15: Contracts of sale which permit the buyer to cancel or provide for
a reduced price in the event of a market decline and which do not permit the
seller to cancel or provide for an enhanced price in the event of a market
rise, are lacking in mutuality and are against the public interest, and the use
of such contracts is condemned as an unfair method of competition.
Rule 16: The making of allowances for trucking or hauling to any purchaser
or to any carrier owned or controlled by a purchaser is an unfair method of
Rule 17: The selling or offering for sale fruit and vegetable package products
to jobbers or other distributive agencies who resell or offer for resale fruit
and vegetable package products at less than the minimum prices as determined
by the Association is an unfair method of competition.
Rule 18: The granting of trade discounts to brokers or other commission
salesmen or agents not properly classified as distributive agencies is an unfair
method of competition.
Rule 19: The consignment of fruit and vegetable package products or the
renting of space in a distributor's warehouse is an unfair method of competition.
Rule 20: The violation of any of the provisions of this code by any employer
or of any approved rule issued thereunder is an unfair method of competition.
ART. XIII. General.-1. This code or any of its provisions may be canceled
or modified and any approved rule issued thereunder shall be declared ineffec-
tive by a majority vote taken at a meeting of a majority in person or by
proxy of the subscribers hereto called and convened after ten days' notice of
the time, place, and purpose thereof mailed to each subscriber hereto by the
secretary of the American Veneer Package Association to the extent necessary
to conform to any action by the President under section 9 (b) of the National
Industrial Recovery Act.
2. The Emergency National Committee of the Veneer Fruit and Vegetable
Package Industry and the Coordinator shall from time to time make to each
Division established or to be established under the provisions of this code. such
recommendations, including amendments of the code, as in their judgment will
aid the effective administration of the code, or may be necessary to effectuate
within the Veneer Fruit and Vegetable Package Industry or within any
Division thereof the purpose of the National Industrial Recovery Act as
3. Amendment to this code may be proposed by any established Division to
the Emergency National Committee or may be initiated by it or the Coordinator,
and when approved by the President shall be effective.
4. Violation by any producer of the Veneer Fruit and Vegetable Package
Industry products of any provisions of this code or of any approved rule
issued thereunder, is an unfair method of competition.
5. In order to avoid undue delay in making effective throughout the Veneer
Fruit and Vegetable Package Industry this code of fair competition, the
following provision is adopted and other provisions of the code in conflict
therewith are suspended until such time as the Emergency National Committee
shall determine that the purposes of the Article have been accomplished:
a. Each established Division shall submit as promptly as possible to the
Emergency National Committee, a complete code in conformity with the gen-
eral provisions of this code. Such code, if found substantially to promote the
purposes of the national code, shall be accepted provisionally by the Emer-
gency National Committee. The Emergency National Committee and the Co-
ordinator shall thereupon proceed as rapidly as practicable to make such
adjustments of and coordination between the provisions in respect of hours,
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wages, and production of several divisional codes as may be necessary to bring
them into conformity with the provisions of the national code by-
1. Consultation and negotiation between the Divisions affected.
2. Their own findings after full consideration of all factors involved. .
If any provision of this code is declared invalid or unenforceable, the. '-
maiinig provisions shall, nevertheless, continue in full force and effect t .t..
same as if they had been separately presented for approval and approved ,.lii::
ART. XIV. Effective Date.-This code and amendments thereto shall be in
effect beginning ten days after its approval by the President.