Code of fair competition for the rubber manufacturing industry

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Material Information

Title:
Code of fair competition for the rubber manufacturing industry as approved on December 15, 1933 by President Roosevelt
Portion of title:
Rubber manufacturing industry
Physical Description:
p. 69-118 : ; 23 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. G.P.O.
Place of Publication:
Washington
Publication Date:

Subjects

Subjects / Keywords:
Rubber industry and trade -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Approved Code no. 156."
General Note:
"Registry no. 899-04."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004930260
oclc - 31966759
System ID:
AA00007821:00001

Full Text


. Approved Code No. 156


NATIONAL



COD]



RUBBE

^ft:


Registry No. 899-04


LL RECOVERY ADMINISTRATION



E OF FAIR COMPETITION
FOR THE

R MANUFACTURING

INDUSTRY


AS APPROVED ON DECEMBER 15, 1933
BY
PRESIDENT ROOSEVELT


) / ;'


1. Executive Order
2. Letter of Transmittal
3 Code





UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933


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


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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

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.O.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Ter.: Chamber of Commerce Building.
Detroit, Mich.: 2213 First National Bank Building.
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Jacksonville, Fla.: Chamber of Commerce Building.
-Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
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Pittsburgh, Pa.: Chamber of Commerce Btilding,
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 500 Olive Street.
San Francisco, Calif.: 810 Customhouse.
Seattle, Wash.: 809 Federal Building.















-I













Approved Code No. 156


CODE OF FAIR COMPETITION
FOR THE

RUBBER MANUFACTURING INDUSTRY

As Approved on December 15, 1933
BY
PRESIDENT ROOSEVELT




Executive Order


An application having been duly made, pursuant to and in full
compliance with provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933. for my approval of a Code of
Fair Competition for the Rubber Manufacturing Industry, and
hearings having been held thereon and the Administrator having
rendered his report containing an analysis of the said code of fair
competition, together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
code of fair competition complies in all respects with the pertinent
provisions of title I of said act and that the requirements of clauses
(1) and (2) of subsection (a) of section 3 of the said act have been
met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, nnd
findings of the Administrator and do order that the said code of
fair competition be, and it is hereby, approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUHa S. JOHNSON,
Administrator.
THE WHITE HOUSE,
December 15, 1933.
(69)


260760-244-156-----33











DECEMBER 6, 1933.
The PRESIDENT,
The White House.
SIR: The proposed Code of Fair Competition 'for the Rubber
Manufacturing Industry (except tires) was submitted to the Admin-
istrator on September 26, 1933, by the Rubber Manufacturers' Asso-
ciation. The Association states it represents approximately 85%
of the volume of production and over 50% of the members of the
Industry. The hearing was conducted in Washington on October
25, 1933. The Code was revised during the recess of this hearing
and is submitted in its present form for approval. Every person who
requested an appearance was properly heard in accordance with
statutory and regulatory requirements.
This Code consists of a basic code for the Industry together with
nine supplementary codes for the following Divisions of the
Industry:
Automobile Fabrics, Proofing and Backing Division.
Rubber Flooring Division.
Rubber Footwear Division.
Hard Rubber Division.
Heel and Sole Division.
Mechanical Rubber Goods Division.
Sponge Rubber Division.
Rubber Sundries Division.
Rainwear Division.

BASIC CODE-CHAPTER I
Chapter I of the Code establishes the relationship between the
Code Authority, the several Divisional Authorities, and the Rubber
Manufacturers Association, for the administration of the Code. The
Chapter includes all mandatory provisions of the Act, together with
the maximum hours and minimum wages, applicable to the entire
Industry except the Rainwear Division. It further includes the
general trade practices which again are applicable to all Divisions.
DIVISIONAL CODES
The supplementary chapters include the definitions of the several
Divisions, the composition and basis for the selection of the Di-
visional Authorities, the trade practices specifically applicable to
every Division, and the method by which alterations and amend-
ments may be made to any Divisional Code.
HOURS OF WORK
Under this Code, no employee (with the exceptions below) shall
work more than 40 hours in any one week nor more than eight hours
in any one day. Each employee may, however, work not more than
(70)





71

80 hours per year in excess of the maximum but in no case more than
48 hours per week. For all hours worked in excess of 40 hours per
week, overtime shall be paid at the rate of time and one third.
Maintenance crews, engineers, firemen, electricians, shipping crews,
watchmen, and elevator operators shall not work more than 45
hours per week, except in emergencies. All time worked in excess
of 45 hours per week in such cases shall be paid for at the rate of
time and one third.
Accounting, clerical, office, service, or sales employees (except
outside salesmen) receiving $35.00 per week or less, are limited to
an average of 40 hours a week over a period of one month but in
no case shall they work more than 48 hours in any one week. Sal-
aried employees receiving more than $35.00 weekly and outside sales-
men are not restricted to any maximum hours.
In the Rainwear Division, factory employees are limited to 40
hours per week and 8 hours per day. All overtime is expressly pro-
hibited. The Divisional Authority is required to report to the
Administrator within ninety days after approval of this Code, as
to the effect of a 40-hour week on re-employment in that Division.
WAGES
This Code provides for a minimum wage of $0.35 per hour. In the
Rainwear Division, nonmanufacturing employees shall be paid not
less than $0.35 per hour and manufacturing employees (as defined in
the Divisional Code) shall be paid not less than $0.40 per hour.
Apprentices may be paid $0.28 per hour during a six weeks' appren-
ticeship. Such apprentices are limited to five percent of the total
employees in any one establishment.
Minimums for salaried employees range from $12.00 per week in
towns of less than 2,500 population to $15.00 per week in cities over
500,000. Clerical apprentices, office boys and girls, may be paid not
less than 80% of these minimums but may not constitute more than
five percent of the total office employees in any one establishment.
Provision is made for superannuated and disabled employees; for
equalization of rates of pay for men and women performing the
same work; for equitable adjustments of pay schedules of factory
employees above the minimum, and for the posting of the labor
provisions of the Code.
ECONOMIC EFFECT OF CODE
This Code will affect approximately 400 establishments and some
60,000 to 70,000 employees. Due to the inadequacy of governmental
or industry data, the exact number cannot be determined. The fol-
lowing estimates of the volume of sales and total number of
employees have been compiled by the Division of Research and
Planning:

1929 1932 Percent
decrease

Value of products........................................... $430,500.000 $1;5,000.000 59 4
Number employees ..---------------------------..........-- .. 80,550 51,300 36.2







The Division estimates 73,000 wage earners were employed in the
Industry in August 1933 and 79,000 in October 1933. For the latter
month this is approximately the average number employed in 1929.
The indexes of the United States Bureau of Labor Statistics indi-
cate that employment and payrolls have increased about 10% from
August to October, average hours per week have declined, and aver-
age hourly earnings have increased slightly. It is believed the adop-
tion of the maximum hours and minimum wages by all members of
the Industry will tend to further increase employment and average
hourly earnings.
FINDINGS

The Administrator finds that:
1. This Code complies in all respects with the pertinent phrases
of Title I of the Act, including but without limitation, Subsection
(a) of Section 7, and Subsection (b) of Section 10 thereof.
2. The Rubber Manufacturers' Association, Incorporated, is truly
representative of the Rubber Manufacturing Industry and its by-laws
contain no inequitable restrictions on membership.
3. The Code is not designed to promote monopolies or to eliminate
or oppress small enterprises and will not operate to discriminate
against them. The Code will tend to effectuate the policy of Title I
of the National Industrial Recovery Act.
It is therefore recommended that this Code be approved.
Respectfully,
HuGH S. JOHNSON,
Administrator.













CODE OF FAIR COMPETITION


FOR THE
RUBBER MANUFACTURING INDUSTRY


CHAPTER I

To effect the policies of Title I of the National Industrial Recov-
ery Act, this Code is submitted as a Code of Fair Competition for
the Rubber Manufacturing Industry and, upon approval by the Pres-
ident, its provisions shall be the standards of fair competition for
this industry, and shall be binding upon every member thereof.

ARTICLE I

A. DEFINITIONS

SECTION 1. The term Rubber Manufacturing Industry or In-
dustry as used herein means the manufacture for sale in the con-
tinental United States (including Alaska) of any rubber product or
products, expressly excluding, however, all solid and pneumatic tires
and pneumatic tubes, and tire accessories and/or tire repair ma-
terials, together with such other rubber products as may be specifi-
cally covered by another duly approved Code of Fair Competition.
SEC. 2. The term Division of the Industry ", as used herein, in-
cludes the several branches of the Industry which have been or may
hereafter be established, as herein below provided, as administrative
units, under the provisions of this Code. The Divisions immedi-
ately established and defined in Chapters II to X are:
Automobile Fabrics, Proofing, and Backing Division
Rubber Flooring Division
Rubber Footwear Division
Hard Rubber Division
Heel and Sole Division
Mechanical Rubber Goods Division
Sponge Rubber Division
Rubber Sundries Division
Rainwear Division
SEC. 3. The term Member of the Industry" includes, but without
limitation, any individual, partnership, association, corporation, or
other form of enterprise or any subsidiary or affiliate of the same
engaged in the Industry, either as an employer or on his or its own
behalf.
(73)







SEC 4. The term Member of the Division includes any member
of the Industry classified in one of the Divisions of the Industry
now or hereafter established.
SEC. 5. The term Member of the Code includes any Member of
the Industry who shall expressly signify assent to this Code.
SEC. 6. The term employee ", as used herein, includes any and
all persons engaged in the Industry, however compensated, except a
member of the Industry.
SEC. 7. The term "Association ", as used herein, means the Rubber
Manufacturers Association, Incorporated, a corporation organized
under the laws of the State of Connecticut and having its principal
office at 250 West 57th Street, New York, New York.
SEC. 8. The term "the President", as used herein, means the
President of the United States.
SEC. 9. The term the Act ", as used herein, means Title I of the
National Industrial Recovery Act.
SEC. 10. The term the Administrator ", as used herein, means the
Administrator appointed under the Act.
SEc. 11. Population for the purposes of this Code shall be deter-
mined by reference to the latest Federal Census.
ARTICLE II

A. ADMINISTRATION AND ORGANIZATION

SECTION 1. To further effectuate the policies of the Act a Rubber
Code Authority (herein referred to as "the Code Authority ") is
hereby set up for the administration of this Code.
SEC. 2. The Code Authority shall consist of the Chairmen of the
several Divisional Code Authorities herein established. The Ad-
ministrator, in his discretion, may appoint not more than three addi-
tional members (without vote) to represent the Administrator, with-
out expense to the Industry or Association. No two members, or
alternates, of the Code Authority shall be affiliated with any single
member of the Industry.
(a) In order that the Code Authority shall at all times be truly
representative of the industry and in other respects comply with
the provisions of the Act, the Administrator may prescribe such
hearings as he may deem proper; and thereafter if he shall find that
the Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an
appropriate modification in the method of selection of the Code
Authority.
(b) The General Manager of the Rubber Manufacturers Associa-
tion shall act as Chairman of the Code Authority, without vote.
(c) One alternate may be selected from each Division to represent
the Chairman of that Division on the Code Authority with full
power to vote in the absence of his principal. No alternate shall,
however, be affiliated with any member of the Industry already rep-
resented on the Code Authority.
(d) Should any matter come before the Code Authority which
specifically involves acts, conduct, or the interest of a member of the
Industry with which any member of the Code Authority is asso-







cited, or employed, such member of the Code Authority shall be
disqualified to act in such matter. The designated alternate shall act
in place of the disqualified member of the Code Authority.
SEC. 3. The Code Authority shall have the duties and powers
herein provided subject to the right of the Administrator, on re-
view to disapprove any action taken by the Code Authority.
(a) The Code Authority shall cooperate with the Administrator
in making investigations as to the functioning and observance of
any provisions of this Code, and report its findings and
recommendations to the Administrator.
(b) The Code Authority may study the trade-practice provisions
incorporated in this Code, and the operation thereof, and may
make such recommendations as are approved by the Divisions af-
fected, to the Administrator from time to time, which it considers
desirable for the modifications or additions thereto. Upon approval
by the Administrator, after such hearing as he may prescribe, such
recommendations shall become a part of this Code and shall have
full force and effect as provisions hereof.
(c) The Code Authority may, at the request of a Divisional Au-
thority, present recommendations to the Administrator, based on
conditions in the Industry as they may develop from time to time.
Such recommendations shall be designed to facilitate the operation
of the provisions of this Code and the policy of the Act.
(d) The Code Authority may require reports from members of
the Industry with respect to hours of labor, wages, conditions of
employment, number of employees, plant capacity, production,
orders, shipments, inventories, and any other matters pertinent to
this Code in order that the .President may be kept informed with
respect to the observance and performance of the Code.
(e) The Code Authority may, at its discretion, set up any or all
of the following committees, or any other committees, if their exist-
ence will further effectuate the policies of the Act, viz:
Accounting
Complaints and Grievances
Fair Practices
Industrial Relations
Statistical
Similar committees may likewise be created within the Divisions
of the Industry by any Divisional Code Authority at its discretion.
(f) In addition to the Divisions herein established in Article I,
Section 2, the Code Authority may from time to time establish new
Divisions of the Industry. Each Division shall have a Divisional
Authority, selected by the members of said Division, as provided
herein below in Article III.
(g) The Code Authority shall coordinate the administration of
this Code throughout the several Divisions of the Industry.
SEC. 4. The Association is hereby designated as the agency for
the collection of statistics, data, reports, and information under
the Code, provided that no inequitable restrictions upon member-
ship therein shall at any time be imposed.
(a) Every member of the Industry shall prepare and file with the
Association, at such times and in such manner and form as the Code
26076--244-156-33--2







Authority may require, statistics of plant capacity, production sales,
orders received, inventories, wage rates, hours of work, and ndh
other data or information as the Administrator may from time to
time require. Such reports and/or records may be either sworn
or unsworn as required.
(b) In addition to information required to be submitted to the
Code Authority, every member of the Industry shall furnish directly
to Governmental agencies such statistical information as the Ad-
ministrator may deem necessary for the purposes recited in Section 8
(a) of the National Industrial Recovery Act.
(c) Except as otherwise provided in the Act all such statistics,
data, and information filed in accordance with this Article shall be
confidential, and the reports and records from any member of the
Industry shall only be revealed to the Administrator or other govern-
mental authority to the extent necessary for the administration and
enforcement of the provisions of this Code.
(d) If the Association shall have reason to believe that any reports
submitted by a member of the Industry are inaccurate, such reports
may be verified by a disinterested and impartial agency designated
by the Code Authority, and for such purpose, such agency shall have
access to any and all relevant books and records of such member.
(e) Any refusal or persistent or deliberate neglect by any mem-
ber of the Industry to file or furnish information required under
this Article shall constitute an unfair trade practice and a violation
of this Code.
SEC. 5. Each member of the Code shall be entitled to participate
in the activities of the Code Authority and of the proper Divisional
Authority or Authorities and of the Association in connection with
the administration of the Code. Each member of the Code shall
bear an equitable share of the cost of maintenance of the Code
Authority and of the proper Divisional Authorities and their activi-
ties, either by becoming a member of the Association or by paying
to the Association a sum equal to his reasonable share of the expenses
incurred in the administration of this Code as determined by the
Code Authority subject to review by the Administrator.
ARTICLE III
A. DIVISIONAL CODE AUTHORITY
SECTION 1. Each Division of the Industry shall establish a Divi-
sional Code Authority (or Divisional Authority) to administer this
Code within such Division, subject to the right of the Administrator,
on review, to disapprove any action taken by any Divisional
Authority.
(a) Each Division shall determine the Size and character of its
Divisional Authority and the basis of representation which shall
prevail within that Division, subject to the same provision contained
in Article II-A, Section 2-a.
(b) Any person or persons appointed under Article II-A, Section
2, as representatives of the Administrator may likewise represent
the Administrator on any Divisional Authority.







(c) No two members or alternates of any Divisional Authority
shall be affiliated with any single member of the Industry.
(d) Should any matter come before the Divisional Authority
which specifically involves acts, conduct, or the interest of a mem-
ber of the Industry with which any member of the Divisional
Authority is associated or employed, such member of the Divi-
sional Authority shall be disqualified to act in such matter. The
designated alternate shall act in place of the disqualified member
of the Divisional Authority.
SEC. 2. The Divisional Authority shall have the following duties
and powers. Any member of a Division may appeal to the Code
Authority from any determination of the Divisional Authority.
The Code Authority, on its own motion, may review any decision
of any Divisional Authority which directly or indirectly affects
more than one Division.
(a) The Divisional Authority shall cooperate with the Code
Authority in making investigations as to the functioning and ob-
servance of any provisions of this Code, at its own instance or on
complaint of any person affected, and report its findings and
recommendations to the Code Authority.
(b) The Divisional Authority shall study the trade-practice pro-
visions incorporated in this Code applicable to its own Division,
and the operation thereof, and after approval by the Division,
shall make such recommendations to the Code Authority, from time
to time, which it considers desirable for modification or addition
thereto. Such recommendations shall be submitted to the Admin-
istrator through the Code Authority accompanied by its own recom-
mendations. Upon approval by the Administrator after such hear-
ing as he may prescribe such recommendations shall become a part
of this Code and have full force and effect as provisions hereof.
(c) The Divisional Authority shall receive, and so far as pos-
sible, adjust all complaints in regard to the operation of this Code,
which involve the members of that Division.
(d) The Divisional Authority shall coordinate the activities of
any Divisional Committees designated to facilitate the operation
of this Code.
SEc. 3. The Association shall act in the same capacity and perform
the same functions for all Divisional Authorities as specified for the
Code Authority in Article II-A, Section 4.

ARTICLE IV

A. INDUSTRIAL RELATIONS POLICIES

SECTION 1. In compliance with Section 7 (a) of the Act it is
provided:
(a) That employees shall have the right to organize and bargain
collectively 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.





78

(b) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union or
to refrain from joining, organizig, or assisting a labor organization
of his own choosing, and
(c) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
SEC. 2. No person under 16 years of age shall be employed in the
Industry. No person under 18 years of age shall be employed on
any milling or calendering operations or any other operations where
there may be recognized hazards connected with the job or operation.
SEC. 3. No provision in this Code shall supersede any State or
Federal law which imposes more stringent requirements on employers
as to age of employees, wages, hours of work or as to safety, health,
sanitary, or general working conditions, or insurance or fire protec-
tion, than are imposed by this Code.

ARTICLE V

A. HOURS
SECTION 1. Except as hereinbelow provided, no employee shall work
or be permitted to work in excess of 40 hours in any one week or
more than 8 hours in any 24-hour period. Provided that each em-
ployee may be permitted to work a total of 80 hours per year in excess
of the maximum hours specified above but not more than 48 hours in
any one week. For all hours worked in excess of 40 hours per week,
overtime shall be paid at the rate of time and one third. It is the
intent that the hours worked by employees under this Section shall
be consecutive, except that reasonable provision may be made for
eating periods.
SEC. 2. Maintenance crews, engineers, firemen, electricians, ship-
ping crews, watchmen, and elevator operators shall not work or be
permitted to work more than 45 hours in any one week. Provided
however, that this limitation of hours shall not apply in cases of
emergency, but in such cases all hours worked in excess of 45 hours in
any one week shall be paid for at the rate of time and one third.
SEC. 3. Accounting, clerical, office, service or sales employees (ex-
cepting outside salesmen) shall not work or be permitted to work in
excess of an average of 40 hours a week over the period of a month,
nor more than 48 hours in any one week.
SEC. 4. The maximum hours fixed in Sections 1, 2, and 3 shall not
apply to salaried employees in any managerial, executive, clerical,
supervisory, or technical capacity receiving more than $35.00 per
week, nor to any outside salesmen.
SEC. 5. No employee shall work or be permitted to work for a total
number of hours in excess of the number of hours prescribed for
each week and day, whether employed by one or more employers;
provided, however, that if any employee works for more than one
employer for a total number of hours in excess of such maximum
without the knowledge or connivance of any one of his employers,
such employer shall not be deemed to have violated this Section.







Sla. 6. No employee shall be classified in any of the foregoing
excepted classes unless he performs functions identical with those
performed by employees thus classified on June 16, 1933.
B. WAGES

ScnoN 1. Except as herein below provided no employee shall be
paid in any pay period less than at the rate of thirty-five cents
($0.35) per hour. Apprentices, during a six weeks' apprenticeship,
may be paid not less than twenty-eight cents ($0.28) per hour. Such
apprentices shall be understood as persons having no previous ex-
perience or employment on similar work in the Industry and shall
not constitute more than five (5) percent of the employees covered
by this Section in the employ of any member of the Industry. Pro-
vided, however, that if any member of the Industry finds such re-
striction to five percent too stringent, such member may appeal to
the Administrator, who may grant an exception.
SEC. 2. No salaried employee (except outside salesmen, office girls
and boys, and clerical apprentices) shall be paid less than at the rate
of-
$15.00 per week-Cities over 500,000 population or in the im-
mediate trade area of such a city.
$14.50 per week-Cities between 250,000 and 500,000 popula-
tion or in the immediate trade area of
such city.
$14.00 per week-Cities between 2,500 and under 250,000 pop-
ulation or in the immediate trade area of
such a city.
$12.00 per week-Towns of less than 2,500 population.
(a) Clerical apprentices during a six months' apprenticeship and
office girls and boys may be paid not less than 80%o of the above
minimums. Such excepted office employees shall not exceed five (5)
percent of the total number of employees covered by Section 2 in
the employ of any member of the Industry. Provided, however, that
if any member of the Industry finds such restriction of five percent
too stringent, such member may appeal to the Administrator, who
may grant an exception.
SEC. 3. The provisions in Article V-B shall not apply to any em-
ployee of ten years' service partially incapacitated through age or
to any employee partially incapacitated through injury, or disease;
provided, however, that such employee shall receive not less than
twenty-five cents ($0.25) per hour. Each member of the Industry
shall report to the Association monthly the number and names of
employees so classified.
SEc. 4. Female employees performing the same work as male em-
ployees in manufacturing operations shall receive the same rates of
pay as male employees.
SEC. 5. Article V-B establishes minimum rates of pay which shall
apply whether an employee is actually compensated on a time rate,
piecework, or other basis.
SEc. 6. Equitable adjustments in all pay schedules of factory em-
ployees above the minimum shall be made within thirty (30) days
after the approval of this Code, by any members of the Industry







who have not heretofore made such adjustments and the fits
monthly reports of wages required to be filed under this Code, shall
contain all wage increases made since May 1, 1933.

C. POSTING OF LABOR PROVISIONS
SECTION 1. Every member of the Industry shall post in conspic-
uous places in all departments of his establishment or establishments
copies of Articles IVand V of Chapter I of this Code.

ARTICLE VI
A. COMPLAINTS AND APPEAL
SECTION 1. Any interested party shall have the right of complaint
to any Divisional Authority, and prompt hearing and decision
thereon in respect to any matter arising under this Code. Such com-
plaint must be filed in writing with the Divisional Authority within
a reasonable period of time after the complaint arises. Any in-
terested party shall have the right of appeal to the Code Authority
from any such decision, under such procedure as it shall prescribe.
SEc. 2. Any interested party shall have the right of complaint to
the Code Authority and prompt hearing and decision thereon, under
such procedure as it shall prescribe, in respect to any rule, regula-
tion, order or finding made by the Code Authority.
SEC. 3. Any interested party shall have the right of appeal to the
Administrator under such procedure as he shall prescribe in respect
to any decision, rule, regulation, order, finding, or omission to act
by the Code Authority or any Divisional Authority.
ARTICLE VII
A. COSTS AND PRICES
SECTION 1. Each member of the Industry shall substantially adopt
and adhere to the methods of cost determination and the cost ac-
counting formulae adopted by each Division, and advocated in the
Association Accounting Manual and revisions thereof adopted by
the Association from time to time, subject to the approval of the
Administrator.
SEC. 2. No member of the Industry shall initiate the sale and/or
exchange of any product of its manufacture at a price or upon such
terms or conditions as will result in the customer paying for the
goods received less than the seller's own individual cost, determined
as in Section 1, subject to any qualifications in the several Divisional
Codes. Where the term "representative member" is used in any
Divisional Code in connection with any such qualifications, it shall
be deemed to exclude any member of the Industry whose actual capi-
tal costs are unduly low due to the acquisition of plant at less than
fair appraisal value, or to other exceptional circumstances out of the
course of normal business; but this shall not be construed as applying
to any legitimate advantages due to location, material costs, or manu-
facturing methods. Provided, that seconds and obsolete goods may
be marketed on such terms and conditions as the Divisional Authori-
ties may approve.







ARTICLE VIII

A. MONOPOLIES

SECTION 1. No provision of this Code shall be so applied as to per-
mit monopolies or monopolistic practices, or to eliminate, oppress, or
discriminate against small enterprises.

ARTICLE IX

A. EXPORTS

SECTION 1. Subject to such qualifications as may be contained in
the several Divisional Codes, the provisions of this Code now or here-
after adopted with regard to prices, discounts, deductions, allow-
ances, extras, commissions, or methods and/or terms of sale shall not
apply to direct export sales. Upon application to the Code Author-
ity, any member of this Industry may secure exemption from such
provisions of this Code in regard to sales in the course of export
i.e., sales destined ultimately for export) or sales of materials used
in the manufacture of products for export. The term "export"
shall include, in addition to shipments to foreign countries, ship-
ments to territories and possessions of the United States, except
Alaska.
ARTICLE X

A. IMPORTS

SECTION 1. Any Division of the Industry may set up a Committee
on Imports whose duty it shall be to investigate and inform the
President as to the importation of competitive articles into the
United States in substantial quantities or increasing ratio to do-
mestic production, on such terms or under such conditions as to
render ineffective, or to seriously endanger the maintenance of this
Code as provided in Section 3 (e) of the Act. The Committee shall
make such reports of its findings to the Divisional Authority which
shall inform the President through the proper channels.

ARTICLE XI

A. TRADE PRACTICES

The following trade practices shall apply to all members of the
Industry in addition to such trade practices as may be specifically set
forth in the several Divisional Codes.
SECTION 1. No member of the Industry shall use advertising
(whether printed, radio, display or of any other nature) or other
representation which is inaccurate in any material particular or
which refers inaccurately to competitors or their commodities, prices,
values, credit terms, policies or services. No member shall, in any
way, misrepresent any commodity (including its use, trade mark,
grade, quality, quantity, origin, size, specifications) or his credit







terms, values, policies, services or the nature or form of the business
conducted.
SEC. 2. No member of the Industry shall use advertising or selling
methods or credit terms which tend to deceive or mislead a cus-
tomer or prospective customer.
SEC. 3. No member of the Industry shall publish or circularize
unjustified or unwarranted threats of legal proceedings which tend
to or have the effect of harassing competitors or intimidating their
customers.
SEc. 4. No member of the Industry shall secretly offer or secretly
make any payment or allowance of a rebate, refund, commission,
credit, unearned discount, or excess allowance, whether in the form
of money or otherwise, for the purpose of influencing a sale; nor
shall a member secretly extend to any customer any special service
or privilege not extended to all such member's customers of the
same class.
SEC. 5. No member of the Industry shall give, permit to be given,
or offer to give anything of value for the purpose of influencing or
rewarding the action of any employee or agent of another, in rela-
tion to the business of the employer of such employee, or the princi-
pal of such agent without the knowledge of such employer or
principal.
SEC. 6. No member of the Industry shall, directly or indirectly,
give or permit to be given or offer to give, money or anything of value
to any customer or prospective customer, or to anyone else, upon
the instigation and for the benefit of any customer or prospective
customer, to induce such customer or prospective customer to pur-
chase any products of the Industry from such members.
SEc. 7. No member of the Industry shall secure confidential in-
formation concerning the business of a competitor by a false or mis-
leading statement or representation, by a false impersonation of one
in authority, by bribery, or by any other unfair method.
SEC. 8. No member of the Industry shall attempt to induce the
breach of an existing contract. between a competitor and his employee
or customer or source of supply; nor shall any such member inter-
fere with or obstruct the performance of such contractual duties
or services.
SEC. 9. No member of the Industry shall brand or mark or pack
any commodity in any manner which tends to deceive or mislead
purchasers with respect to the brand. srade, quality, quantity, origin,
size, or specification of such commodity.
SEC. 10. No member of the Industry shall withhold from or insert
into any invoice any statement which would make the invoice a false
record, wholly or in part. of the transaction to which it refers, or
make any arrangement which contemplates payment or settlement
contrary to the face of the invoice.
SEC. 11. No member of the Industry shall imitate the trade mark
of a competing member.
AwTICLE: XII
A. REVISIONS AND MODIFICATIONS
SECTrION 1. This Codle and nll the provisions thereof are expressly
made subject to the right of the President, in accordance with the


;i







provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regula-
tion issued under said Act and specifically, but without limitation,
to the right of the President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
SEC. 2. Such of the provisions of this Code as are not required by
the Act to be included herein may, with the approval of the Presi-
dent, be modified or eliminated as changed circumstances or expe-
riences may indicate. It is intended that this Code shall be a basic
code for the Industry and that additions to this Code applicable to
all members of the Industry, or affecting or pertaining to one or
more Divisions of the Industry, may be submitted to the President
for approval, as herein provided.
SEC. 3. By presenting this Code members of the Industry who
have assented hereto shall not be deemed to have consented to any
modification thereof, except as each shall thereto subsequently agree.
SEC. 4. If any member of the Industry is likewise engaged in part
in any other industry or trade, this Code shall apply only to such of
the activities of said member as are comprehended within the Rubber
Manufacturing Industry.

ARTICLE XIII

A. EFFECTIVE DATE AND TERMINATION
SECTION 1. This Code shall become effective on the second Monday
after it shall have been approved by the President of the United
States. It shall continue in effect until June 16, 1935, or until such
time prior thereto when the President shall, by proclamation, or the
Congress shall by joint resolution, declare that the emergency recog-
nized by Section 1 of the Act has ended.


26076--244-156---33-3












CHAPTER II


AUTOMOBILE FABRICS, PROOFING, AND BACKING
DIVISION

ARTICLE I

A. DEFINITION
SECTION 1. The Automobile Fabrics, Proofing, and Backing Divi-
sion shall consist of all members of the Industry engaged in the
manufacture for sale of the products of the Division as further de-
fined herein, except as may be specifically covered by another duly
approved Code of Fair Competition.
(a) The term "Automobile Fabrics" as used herein includes all
rubberized fabrics which are generally used for automobile top cov-
erings and/or side curtains and/or accessories.
(b) The terms Proofing and Backing as used herein include
all materials which have been coated, backed, impregnated, and/or
combined with rubber in any form, or gutta percha such materials
being in sheets or continuous rolls. The term shall likewise include
materials which have been coated, backed, or combined with paste
or glue by members of the Industry engaged principally in proofing
and backing materials with rubber and gutta-percha. This definition
includes, but without limitation, leatherette, flocked suede, trench,
jersey, and other garment fabrics, hospital sheeting, shower-bath
curtain materials, quarter lining and other shoe fabrics, corset fabric,
weather stripping, sanitary specialties fabrics, cover cloths, novelty,
luggage, and upholstery fabrics.
ARTICLE II

A. ADMINISTRATION

SECTION 1. An Automobile Fabrics, Proofing, and Backing Divi-
sional Code Authority consisting of five persons (herein referred to
as the Divisional Authority) is hereby set up for the administration
of this Code in accordance with Chapter I, Article III-A.
SEC. 2. The Divisional Authority shall consist of two representa-
tives from the Automobile Fabrics Subdivision, two from the Proof-
ing Subdivision and one from the Backing Subdivision. Such rep-
resentati.ves shall be elected by vote of a majority of the Divisional
Code members in number and volume in the respective Subdivisions.
(84)







ARrTILE III

A. COSTS

SECTION 1. Notwithstanding the provisions of Chapter I, Article
VII-A, Section 2, the following shall be the provisions as to the
Cost Recovery formula for this Division:
(a) At the request of the Divisional Authority each member of
the Division shall compute his own individual cost pursuant to the
system of cost accounting provided in Article VII-A, of Chapter I
and report such cost to the Association. The Divisional Authority
shall then ascertain the cost of the most efficient member of the
Division, i.e., that representative member of the Division whose
cost is lowest. The Divisional Authority shall thereupon publish
such cost to the members of the Division. Thereafter no member
of the Division shall sell any product of the Division at a price
lower than such cost. Such cost determination shall be revised from
time to time at reasonable intervals. If the operation of this para-
graph should work unjust hardship upon any member of the Divi-
sion, such member may appeal to the Divisional Authority which
shall have power to grant such relief as justice may require.
SEO. 2. Within ten days after the date of approval of this Code
each member of the Division engaged in the manufacture of auto-
mobile fabrics shall publish and file with the Association a schedule
of its prices and terms of sale to the jobbing and replacement trade.
All such price schedules shall be open to inspection in the office of
the Association. The Association shall furnish copies of such sched-
ules to any member of the Division who makes application therefore.
SEC. 3. No member of the Division engaged in the manufacture of
automobile fabrics shall sell such products at prices lower or on
terms more favorable than the prices and terms in his price schedules
and price lists filed pursuant to Section 2 of this Article, unless he
has first filed revised schedules and lists to take effect in not less than
five days from date of filing. The Association shall, promptly after
receipt of such revised schedules and lists, notify all members af-
fected. Such affected members may thereupon file with the Asso-
ciation, revisions of their price lists which, if filed prior to the date
when the revised price lists first filed shall go into effect, may become
effective on said date.
ARTICLE IV

A. TRADE PRACTICES
SECTION 1. No member of the Division shall consign any merchan-
dise, except patented products.
SEC. 2. Secret rebates, secret discounts, or secret bonuses shall not
be given or extended to any person. No form of commercial brib-
ery shall be practiced.
SEC. 3. Money, goods, premiums, or a reduction in price of prod-
ucts of the Division shall not be given to a purchaser for the pur-
chaser's or his customers' advertising purposes.
SEC. 4. No member of the Division shall depart from the following
standard terms of sale:







(a) Automobile Fabrics.-(1) 2% cash discount, 15th proximo,
net 25th proximo, except that terms for goods billed and shipped
to customers in the States of California, Oregon, and Washington
from points east of the Mississippi River shall be 2%, 15th proximo,
net 25th proximo, 30 days extra.
(2) No prepayment or allowance of freight shall be made, except
on shipments of 100 pounds and over.
(3) There shall be no post-dating, except that shipments made
on or after the 25th day of the month may be billed as of the first
of the following month.
(4) No material sold shall be invoiced to any other than the
customer who placed the order.
(b) Proofing.-(1) 2%, 30 days, net 35th day. Interest at the
legal rate shall be charged after the 35th day. There shall be no
post-dating.
(c) Backing.-(1) 2%, 15th proximo, net 30th proximo.
2No prepayment or allowance of freight shall be made except
on shipments of 100 pounds and over.
(3) Bona fide jobbers and/or distributors may be extended terms
of 7%, 15th proximo, net 30th proximo.
(4) There shall be no post-dating, except that shipments made
on or after the 25th day of the month may be billed as of the first
of the following month.
SEC. 5. After January 1, 1934, no member of the Division shall
coat or combine customer's auto-topping fabrics to be used in the
jobbing or replacement trades, whether domestic or export, or buy
or take title to any material with the intent of evading this provi-
sion. Should this provision work an unjust hardship on any member
of the Division or on any customer, such member or customer may
appeal to the Administrator who shall have power to grant such
exemption or stay as justice may require.
SEO. 6. No member of the Division shall make blanket commit-
ments for the sale of any products of the Division.
SEc. 7. Every member of the Division shall conform to the stand-
ard specifications and inspection rules adopted by the Division from
time to time for auto-topping fabrics, subject to the approval of
the Administrator. Should this provision work an unjust hardship
on any member of the Division, such member may appeal to the
Divisional Authority which shall have power to grant such relief
as justice may require.
SEC. 8. No member of the Division shall extend any guaranty or
warranty in connection with any auto-topping fabrics other than
the Standard Guaranty of the Association, reading as follows:
Guaranty on Double Texture Rubber Surface Coated Top Material
The material covered by this contract is guaranteed for a period
of one year from date of shipment from supplier's mill against leak-
ing due to deterioration of coating, provided the coating has not been
injured by other materials used in conjunction with it, such as fillers
used in closing the cracks or joints of the frame over which the top
material is stretched, or from the use of top dressings or cleaning
materials containing ingredients injurious to rubber. Neither will







the guaranty apply to leaks due to improperly attaching the material
or to seams.
In the event of establishment of claim, we will replace the ma-
terial without charge and allow approved labor cost of applying it
to the top.
"This guaranty does not apply to single-texture goods."
SEd. 9. All contracts or orders hereinafter made shall contain a
statement that prices on all orders shall include Federal or State
taxes payable by members of the Division and all other increased
costs incurred as a direct result of the operation of the Act. Con-
tracts shall provide that prices shall be subject to increase without
notice, by such amount as may be necessary to compensate a member
for the increased cost incurred as a direct result of any State or
Federal legislation enacted after the date of acceptance of any
order and before shipment thereof is made.
SEC. 10. No member of the Division shall either post-date or pre-
date invoices for his product for the purpose of achieving an unfair
competitive advantage.
SEc. 11. Violation of any of the provisions of this Code shall be
construed an unfair trade practice and shall be subject to the penal-
ties of the Act.
ARTICLE V

A. ALTERATIONS OR AMENDMENTS

SECTION 1. Any addition, alteration, or amendment of this Code
which has had the approval of the majority of the Divisional Code
members in number and in volume shall be presented to the Code
Authority in accordance with Chapter I, Article III-A, Section 2.












CHAPTER III


RUBBER FLOORING DIVISION

ARTICLE I

A. DEFINITION

SECTION 1. The Rubber Flooring Division shall consist of all
members of the Industry engaged in the manufacture for sale or
wholesale sale by manufacturers, or any subsidiary or affiliate of the
same, of rubber tile flooring, sheet rubber flooring, wainscoting, in-
terlocking tile, and other flooring accessories of which the chief
component part is rubber, exclusive of mats and matting.

ARTICLE II

A. ADMINISTRATION

SECTION 1. A Rubber Flooring Divisional Authority consisting
of three persons (herein referred to as the Divisional Authority) is
hereby set up for the administration of this Code in accordance with
Chapter I, Article III-A. Such Divisional Authority shall be
elected by vote of a majority of the Divisional Code members in
number and in volume.
ARTICLE III

A. MARKETING STANDARDS

SECTION 1. To assist in providing uniform trade practices and
preventing discrimination and unfair competition, the following
group customer classifications, based upon differences in costs and
services rendered, are hereby established. All members of the Divi-
sion shall file with the Association the names and addresses of all
distributors, sales agents, and special-brand accounts as herein de-
fined. If such definitions shall by virtue of their application in this
Chapter work hardship on any member of the Division or any
customer, such member or customer may appeal to the Divisional
Authority, which shall have power to reclassify such customer as
justice requires.
(a) Dealer.-A dealer shall be an account actively engaged in the
sale to and installation for the ultimate consumer, of any products of
the Division whether standard or special brand.
(b) Preferred Dcaler.-A preferred dealer shall be an account
carrying an adequate stock of sheet-rubber flooring materials and
actively engaged in their sale to the ultimate consumer, with or with-
out installation.
(88)







(c) Distributor.--A distributor shall be an account carrying an
adequate stock of sheet-rubber flooring materials and actively en-
gaged in their sale to any or all classes of accounts, with or without
installation.
(d) Original equipment customer.-An original equipment cus-
tomer shall be an account which buys rubber flooring materials for
use in the manufacture by it of products sold by it, such as elevators,
railroad cars, steamships, busses, furniture and fixtures or for use in
connection with the sale or installation of such products.
(e) Sales agent.-A sales agent shall be an account engaged, di-
rectly or indirectly, in the sale, without installation, of rubber floor-
ing materials, to any or all classes of accounts.
(f) Special brand account.-A special brand account shall be an
account actively engaged, directly or indirectly, in the sale, without
installation, of special brand rubber flooring materials to any or all
classes of accounts.
(g) Ultimate consumer.
SEC. 2. Inasmuch as approximately 75 percent of sales of prod-
ucts of the Division to dealers is made direct by manufacturers, it
is necessary to supplement marketing standards and trade practices
by provisions designed to prevent indirect evasion of such standards
and practices by members of the Division by sales to or through
distributors, sales agents, or special brand accounts. Accordingly,
it is provided that no member of the Division shall sell any product
of the Division to or through any distributor, sales agent, or special
brand account who is not complying with the provisions of Articles
IV, V, and VI of this Chapter.
ARTICLE IV

A. SELLING SCHEDULES

SECTION 1. Every member of the Division shall file with the Asso-
ciation, within ten days after the approval of this Code, a complete
schedule of his prices and terms of sale to dealers, preferred deal-
ers, distributors, original equipment accounts, and ultimate con-
sumers, as classified in Article III-A, Section 1, for immediate dis-
tribution to all other members.
SEC. 2. No member of the Division shall sell any product at prices
lower or on terms more favorable than the prices and terms in his
price schedules and price lists filed pursuant to Section 1 of this
Article, unless he has first filed revised schedules and lists to take
effect in not less than fifteen (15) days from date of filing and has
supplied by registered mail sufficient copies of such revised price
schedules and lists to permit distribution thereof to all members of
the Division. Immediately upon receipt of such revised price sched-
ules and lists the Association shall mail a copy thereof to each mem-
ber of the Division. Any member of the Division may then file
revised price schedules and lists which, if filed prior to the date
when the revised price schedules and lists first filed shall go into
effect, may become effective on said date.
SEC. 3. Many members of the Division, either directly or through
a branch, subsidiary, or affiliate, sell products of the Division to the







ultimate consumer and install the same. To maintain stability, it is
necessary to prevent the operation of such selling with installation
at a loss and the absorption of such loss by profits obtained in other
phases of such members' businesses. Accordingly, it is hereby pro-
vided that this phase of each member's business shall be segregated
for costing purposes and. as thus segregated, shall be conducted in
compliance with Article VII of Chapter I of this Code.
ARTICLE V

A. TRADE PRACTICES

The following trade practices shall apply to the sale to any class
of customer as set forth in Article III-A of this Chapter.
SECTION 1. No member of the Division shall allow a shipment or
sale of any goods which are in any way of a better or poorer quality,
weight, or gauge or appearance than is represented.
SEc. 2. No member of the Division shall sell or offer for sale any
product of the Division which has been or should be properly classi-
fied as seconds ", except to employees for their own personal use
and not for resale purposes. No member shall sell or offer for sale
any obsolete and/or discontinued design and/or colors and/or
remnants, at special prices without first:
(a) Notifying the Divisional Authority two weeks in advance of
the quantity and other pertinent specifications of such products to be
so disposed of, with the reasons therefore.
(b) Stating discount below the regular established price at which
they are to be sold.
(c) Obtaining the approval of the Divisional Authority for such
disposal. If the Divisional Authority denies approval or fails to
notify such member of its decision within ten (10) days, such mem-
ber may appeal to the Administrator who shall have power to grant
approval. The Divisional Authority shall advise all members of the
Division simultaneously of such authorizations.
SEC. 3. No member of the Division shall give or extend secret re-
bates, secret discounts, or secret bonuses to any person or customer.
SEC. 4. No member of the Division shall withhold from or insert
into any invoice any statement which would make the invoice a false
record, wholly or in part, of the transaction to which it refers, or
make any arrangement which contemplates payment or settlement
contrary to the face of the invoice.
SEC. 5. No member of the Division shall discriminate between cus-
tomers by selling or shipping goods to any customer upon terms
more favorable than to any such member's other customers of the
same class. No member shall store goods in any establishment in
which a customer has any interest nor shall warehouse premises be
hired by any member from his customers, except where the customer
may have, or own, an interest in a public warehouse in which a cus-
tomer's place of business is not located.
SEC. 6. No member of the Division shall guarantee or promise
any dealer, preferred dealer, distributor, original equipment cus-
tomer, sales agent, or special-brand account any specific volume of





91

sales or the assistance of any one or more salesmen of such member
for any definite period, as an inducement for obtaining the account
S of such customer or customers.
SEC. 7. No member of the Division shall ship or in any way
deliver free goods of any kind, to any person as an inducement in
- connection with any sale.
SEc. 8. No member of the Division shall engage in untruthful,
misleading advertising, or advertising disparaging of a competitor
or tending to disparage a competitor or his products.
SEC. 9. No member of the Division shall subnormally price any
other products manufactured or sold by him, but not included in
his rubber flooring price list, for the purpose of influencing the
sale of rubber flooring materials.
SEc. 10. If, as, and when any prospective purchaser demands a
performance bond of a member of the Division, each member shall
give only such bond as shall-conform with the terms of the standard
guaranty of the Association, reading as follows:
We guarantee our product against defects provided our recom-
mended cleaning instructions are followed and we will repair or
replace any such defective product which is brought to our atten-
tion, in writing, within one year after date of completion of installa-
tion.
"We do not accept responsibility for any damages arising from
defects or dampness in subfloors or other surfaces which may occur
after completion of installation."
SEC. 11. Violation of any schedule filed with the Association as
provided for in this Code, or the violation of any of the provisions of
this Code shall be considered an unfair trade practice and shall be
subject to the penalties of the Act.

ARTICLE VI

A. CONTRACTS WITH DEALERS

SECTION 1. Each member of the Division may offer to any dealer a
contract in such form and subject to such terms and conditions as
may be prescribed by the President or the Administrator, under the
terms of which contract such dealer shall agree to conform to the
following practices:
(a) To promptly furnish, on formal request of the Divisional
Authority, a properly executed bid form, which shall be a true and
precise record of any final bid, proposal, or quotation.
(b) To segregate the quantities, sizes, and prices charged on each
and all items involving materials other than rubber flooring, so that
rubber flooring shall be shown separate from all other materials.
(c) To furnish no performance bond not in conformity with the
terms of the standard guaranty of the Association set forth in Article
:V-A, Section 10 herein.
(d) To specify name or brand of rubber flooring in all bids, pro-
posals, or quotations.
(e) To refrain from subnormally pricing any other products sold
by him, for the purpose of influencing the sale of rubber flooring.
26076--244-156---3--4







(f) To make all bids, proposals, or quotations in accordance with
plans or specifications and on all open bidding to base all bids, pro-
posals or quotations on computations furnished by an estimating
bureau approved by the Divisional Authority.
(g) To refrain from the giving of secret rebates or the practice
of commercial bribery in any form.
(h) To refrain from accepting an order from any customer on a
blanket order basis which calls for areas and/or quantities not
definitely specified or delivery date not specified.
(i) To refrain from accepting additional orders on a contract
at the original price unless such orders are placed before the original
contract is completed and unless there has been no change in the
dealer's scheduled installed price.
ARTICLE VII
A. ALTERATIONS AND AMENDMENTS

SECTION 1. Any addition, alteration or amendment of this Code
may be proposed by any member of the Division, and after receiving
the approval of a majority in volume and in number of the Divi-
sional Code members, it shall be presented to the Code Authority
in accordance with Chapter I, Article III-A, Section 2.













CHAPTER IV


RUBBER FOOTWEAR DIVISION

ARTICLE I

A. DEFINITION

SECIroN 1. The Rubber Footwear Division shall consist of all
members of the Industry engaged in the manufacture for sale or
wholesale sale by manufacturers, or any subsidiary or affiliate of
the same, of all' types of so-called "Waterproof and Canvas Rubber-
Soled Footwear.
ARTICLE II

A. ADMINISTRATION

SECTION 1. A Rubber Footwear Divisional Code Authority con-
sisting of three persons (herein referred to as the Divisional Au-
thority) is hereby set up for the administration of this Code in
accordance with Chapter I, Article III-A. Such representatives
shall be elected by a majority vote of the Divisional Code members.
SEC. 2. The Divisional Authority shall set up the following com-
mittees to further effectuate this Code, whose duties and responsi-
bilities are hereinafter prescribed:
(a) A Marketing Committee consisting of three members.
b) A Specification Committee consisting of three members.
(c) A Committee on Imports, consisting of three members, whose
duty it shall be to investigate and inform the President as to the
importation of competitive articles into the United States in sub-
stantial quantities or increasing ratio to domestic production on such
terms or under such conditions as to render ineffective or to seriously
endanger the maintenance of this Code as provided in Section 3 (e)
of the Act. The Committee shall make such reports of its findings
to the Divisional Authority, which shall inform the President
through the proper channels.
(d) Such additional committees as the Divisional Authority from
time to time may deem desirable, in accordance with Chapter I,
Article II-A, Section 3-e.
ARTICLE III
A. COST RECOVERY
SECTON 1. The Specification Committee shall from time to time
present for adoption, with reasonable tolerances, by the Division,
(93)





94

definitions of standard products under the title Standard Product
Specifications ", which definitions when adopted shall be filed with
the Association.
SEC. 2. At the request of the Divisional Authority, each member
of the Division shall compute his own individual cost for all prod-
ucts defined in Article III-A, Section 1 of this Chapter, pursuant
to the system of cost accounting provided in Article VII-A of.
Chapter I and report such cost to an impartial agency selected by
the Divisional Authority. Such impartial agency shall then ascer-
tain the cost of the most efficient member of the Division, i.e., that
representative member whose cost is lowest. The Divisional Au-
thority shall thereupon publish the cost of the most efficient member
to all members of the Division. Thereafter no member of the Divi-
sion shall sell any product of the Division at a price lower than
such cost, other than factory damaged or obsolete merchandise to be
disposed of under Article IV-A, Section 1, of this Chapter.
SEC. 3. Any member of the Division may make footwear of higher
quality than any defined in the specifications adopted in Section 1
and in that event shall sell such footwear at a proportionately higher
price than his filed list, which shall truly reflect the increased cost of
such footwear. The prices, discounts and terms of sale of such foot-
wear of higher quality shall be filed with the Association from time
to time promptly upon such issuance.
SEC. 4. No member of the Division shall make footwear of lower
quality than the lowest defined in the Standard Product Specifi-
cations"; provided, however, that if this section works an unjust
hardship on any member of the Division, such member may appeal
to the Divisional Authority for an exemption.

ARTICLE IV
A. MARKETING STANDARDS
SECTION 1. The Marketing Committee shall recommend for adop-
tion by the Division, methods of properly identifying and disposing
of factory damaged and obsolete goods, in order that the marketing
of such goods may be carried out in an orderly and fair manner.
SEC. 2. To assist in providing uniform trade practices and prevent-
ing discrimination and unfair competition, group customer classifi-
cation definitions, based upon differences in costs and services ren-
dered, shall be adopted by the Division, subject to the approval of the
Administrator, for the following classifications under the title of
"Definitions of Buyers of Footwear ", and such definitions shall be
filed from time to time with the Association:







(a) Classification of Buyers of Footwear:
Jobbers
Mail-Order Houses
Chain Stores
Department Stores
Cooperative Buying Associations
Group Buyers
Industrials:
Contractors
Commissaries
Abattoirs, etc.
Government:
Federal
State
County
Municipal
Retailer
Agencies:
Syndicates
Resident buyers
Consumers
(b) If the definitions adopted should, by virtue of their applica-
tion, pursuant to'this Chapter, work a hardship on any member of
the Division or customer, such member or customer may apply to the
Divisional Authority, which shall have power to reclassify such
member or customer as justice may require.
ARTICLE V

A. PUBLICITY OF PRICES AND TERMS OF SALE

SECTION 1. Within ten days after the approval of this Code, every
member of the Division shall file with the Association a complete
schedule of his present unit prices, discounts, and terms of sale for
all products defined in Article III-A, Section 1, herein, and to all
classifications of Buyers defined in Article IV-A, Section 2 herein.
Thereafter, annually each member shall file with the Association
not less than ten days prior to the opening of the Waterproof "ad-
vance order" season on February first and the opening of the Canvas
Goods advance order" season on September first, a complete sched-
ule of his new unit prices, discounts, and terms of sale for such
products, to such classifications of Buyers to become effective on
such dates. No member shall sell any products of the Division at
prices lower or on terms more favorable than the prices and terms
in his price lists and schedules on file with the Association. Any
member may file new schedules to meet competition within thirty
days after the opening of the aforesaid "advance order" seasons,
which new schedules may take effect not less than ten days from
the date of filing. The Association shall, promptly after receipt of
such revised lists and terms, notify all members affected. Such
affected members may thereupon file with the Association revisions
of their schedules which, if filed prior to the date when the revised
schedules first filed shall go into effect, may become effective on said






date. Thereafter, any changes in schedules must be supported by
adequate cost data to warrant such changes, which data shall be
submitted to the Divisional Authority. Whereupon, any member
may file with the Association further revised schedules not less than
ten days in advance of the effective date, in accordance with the
procedure herein established.
SEC. 2. No order shall be taken which guarantees prices beyond
the expiration of the consumer" season for the class of goods
specified. Provided further, that, whenever a member of the Divi-
sion files new prices during the "consumer" season, all shipments
made by such member after the effective date of such change of
price shall be at the new prices, except that orders on hand, shipment
of which can be completed within 30 days after the effective date
of such price change, may be filled at old prices provided that such
30-day period does not extend beyond the expiration of such "con-
sumer" season. Whenever a member files new prices during the
" advance order" season, all shipments after the effective date of
such price changes, must be at new prices, except orders on hand,
shipment of which can be completed within 30 days after the expira-
tion of said advance order season.
(a) For purposes of interpretation of this section the "advance
order and consumer seasons shall be as follows:
Advance order", Waterproof-February 1 to September 1.
Canvas-September 1 to March 1.
Consumer", Waterproof-September 1 to February 1. Can-
vas-March 1 to September 1.

ARTICLE VI

A. TRADE PRACTICES

SECTION. 1. No member of the Division shall ship any merchan-
dise under any conditions, on consignment to any classification of
account.
SEC. 2. No member of the Division shall sell or offer for sale any
Firsts as Seconds, or obsolete merchandise except in accordance with
Article IV-A, Section 1.
SEC. 3. No member of the Division shall accept any order other
than a detailed order with specified shipping date, prices, terms, and
discounts.
SEC. 4. No member of the Division shall offer or give so-called
premiums with his merchandise.
SEC. 5. Violation of any schedule filed with the Association as pro-
vided in this Code, or the violation of any of the provisions of this
Code, shall be considered an unfair trade practice, and subject to
the penalties of the Act.

ARTICLE VII

A. SALES THROUGH JOBBERS OR AGENTS
SECTION 1. In view of the fact that more than 75 percent of the
total volume of sales of products of the Division to retailers consists




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of sales direct by members of the Division, the restriction of such
members to marketing standards and trade practices will be unavail-
ing unless supplemented by provisions designed to prevent indirect
evasion thereof through sales by jobbers or agents. Accordingly, it
is hereby provided that no member of the Division shall sell products
of the Division to or through any jobber or agent who is not com-
plying with the provisions of Articles IV, V, and VI (except Sec-
tion 4) of this Chapter.

ARTICLE VIII

A. INDUSTRY CAPACITY

SECTION 1. The Divisional Authority may proceed with a survey
of the productive capacity of the Division and submit recommenda-
tions to the Administrator concerning the desirability of limiting the
expansion of the productive capacity of the Industry.

ARTICLE IX

A. ALTERATIONS AND AMENDMENTS

SECTION 1. After due notice to all members of the Division, the
Divisional Authority may, at the request of a majority of the Divi-
sional Code members and shall, at the request of 75 percent in un-
bers representing 50 percent in volume of the Divisional Code mem-
bers, submit to the Administrator for approval any recommended
additions, alterations, or amendments to this Code in accordance
with Chapter I, Article III-A, Section 2.


S w












CHAPTER V


HARD RUBBER DIVISION

ARTICLE I

A. DEFINITION
SECTION 1. The Hard Rubber Division shall consist of all members
of the Industry engaged in the manufacture for sale of any type of
hard rubber products.
ARTICLE II

A. ADMINISTRATION
SECTION 1. A Hard Rubber Divisional Code Authority consisting
of five persons (herein referred to as the Divisional Authority) is
hereby set up for the Administration of this Code in accordance
with Chapter I, Article III-A. Such representatives shall be elected
by concurrent vote of a majority of the Divisional Code members in
number and volume of hard rubber products.

ARTICLE III

A. COSTS
SECTION 1. In the application of Article VII of Chapter I to this
Division, the cost accounting formula shall take due account of
costs and expenses for equipment, including special molds, jigs, tools,
etc., and installation costs of same and related costs of handling.

ARTICLE IV

A. MARKETING STANDARDS

SECTION 1. No guaranty or warranty shall be made in connection
with any product sold other than the standard guaranty of the
Association, which is:
"This merchandise is warranted to be free from defects of work-
manship and material. The seller's liability hereunder is limited to
the purchase price of merchandise which has failed through defect or,
at the seller's option, to the replacing of such merchandise upon its
return by the buyer with other merchandise of the quality warranted
and with due allowance made for the service rendered by the mer-
chandise returned."
(98)







ARTICLE V

A. SEEING SCHEDULES

SECON 1. Products of the Hard Rubber Division shall be divided
into standard lines and special items.
A standard line shall be a line of products repeatedly made by
more than one manufacturer for which general specifications may
be drawn, and which, on account of similarity of the articles con-
tained therein, may be priced on a substantially uniform basis accord-
ing to size, weight, or per individual article. Standard lines may
be furnished in accordance with customers' special designs and
brands, but if such articles require special molds or parts to conform
to customers' special designs or brands, such customers shall be
charged for said special molds or parts of molds in accordance with
Article III-A, Section 1. Special items shall comprise all articles
not contained in any of the standard lines or directly comparable to
any of the standard lines.
SEC. 2. All members of the Division shall submit to the Divisional
Authority a list of product classes manufactured by them which
they believe should be classed as standard lines in accordance with
the definition given above. The Divisional Authority shall make up
from the lists submitted a schedule of the products to be classified as
standard lines. Copies of schedules and specifications shall be sent
to each member of the Division. Within ten days after receipt of
such schedules and specifications each member of the Division shall
file with the Association his price lists covering the standard line
lines, or part thereof that he manufactures. Such price lists shall
follow the specifications, form, and arrangement established by the
Divisional Authority and shall show all discounts allowed, together
with mold policy.
(a) No member shall sell any standard-line product at a price
lower or at discounts greater or on terms more favorable than those
stated in his current price list, unless he shall first file a revised
price list to take effect in not less than ten days from date of filing.
Price lists on standard lines shall be available to all members manu-
facturing such lines and the Association shall send copies of such
lists filed to the other members manufacturing that line.
(b) If a member objects to any standard-line classification or
specification set up by the Divisional Authority, he may protest to
said Authority in writing. Each protest shall receive due consider-
ation and the protesting member shall be accorded a hearing if
he so desires. Should the Divisional Authority decide that the
standard-line classification or specification shall remain unchanged
and the protesting member still objects thereto, said member shall
have the right of appeal as provided in Article VI of Chapter I.
SEc. 3. Upon application by any member, the Divisional Authority
shall consider whether any class of product shall be removed from
the special items and put under the standard-line classification. In
the event that the Divisional Authority approves the application,
procedure shall be as outlined above.





100


ARTICLE VI

A. TRADE PRACTICES

SECTION 1. Terms of shipment shall be f.o.b. point of manufacture,
except, at the discretion of the seller, transportation charges on ship-
ments of 100 pounds and over may be allowed.
SEc. 2. Regular terms of payment for special items shall be a maxi-
mum cash discount of 2% ten days, net 30 days. Where a member
is regularly supplying a customer, the 2% discount may be extended
up to the 25th proximo.
SEC. 3. Orders shall specify a definite quantity. No contracts shall
be made guaranteeing prices for a longer period than six months
from date of order. Contracts which of necessity must be spread
over a longer period of time shall specify price of any undelivered
portion of this contract six months from the date of this contract
is sub ect to change with reference to the then-prevailing market
price.
SEC. 4. All quotations and order acknowledgements shall specify
that the prices do not include sales taxes and shall be subject to in-
crease to cover any taxes or any other increased costs directly due
to present or future legislation, either Federal or State.
SEC. 5. No member of the Division shall sell any products of the
Division on consignment.
SEc. 6. No member of the Division shall enter into any contract
for furnishing any of his products contingent upon the sale or pur-
chase of any other thing, or the performance of any other service.
SEC. 7. No member ofthe Division shall furnish without charge
samples of products in excess of what are actually required reason-
ably to serve the intended purpose.
SEC. 8. Violation of any schedule filed with the Association as
provided for in this Code, or the violation of any of the provisions
of this Code shall be considered an unfair trade practice.

ARTICLE VII

A. ALTERATIONS OR AMENDMENTS

SECTION 1. Any addition, alteration, or amendment of this Code,
which has had the approval of the majority of the Divisional Code
members in numbers and in volume of hard-rubber products, shall
be presented to the Code Authority in accordance with Chapter I,
Article III-A, Section 2.











CHAPTER VI


HEEL AND SOLE DIVISION

ARTICLE I

A. DEFINITION

SEcToN 1. The Heel and Sole Division shall consist of all members
of the Industry engaged in the manufacture for sale of rubber heels,
soles, soling sheets, strips, taps, sport soles, sport heels, stick-on soles
and heels, and rubber heel and sole cement.
ARICLE II

A. ADMINISTRATION

SECTION 1. A Heel and Sole Divisional Authority consisting of
five persons (herein referred to as the Divisional Authority) is hereby
set up for the administration of this Code in accordance with Chapter
I, Article III-A. Such representatives shall be elected by a vote of a
majority of the Divisional Code members in number and volume,
and shall be composed of representatives of two small-size companies,
two large-size companies and one medium-size company.
ARTICLE III

A. MARKETING STANDARDS

SECTION 1. To assist in providing uniform trade practices and
preventing discrimination and unfair competition, group customer
classification definitions, based on differences in costs and services
rendered, shall be adopted by the Division, subject to the approval of
the Administrator, for the following classifications, under the title
of Definitions of Buyers of Heels and Soles and such definitions
shall be filed from time to time with the Divisional Authority.
(a) Shoe manufacturers including wood-heel manufacturers.
(b) Wholesale merchants including leather and findings distrib-
utors and jobbers, wholesale hardware, harness, grocery, novelty,
and general merchandise.
(c) Mail order and/or chain store retail merchants, excluding
those engaged in the business of alteration and/or repair of footwear.
d) Manufacturers' distributors or sales agents
e) Shoe repair shops, individual and multiple.
Ec. 2. If such definitions shall by virtue of their application
pursuant to this Chapter, work hardship or any member of the
Division or customer, such member or customer may apply to the
(101)




102


Divisional Authority, which shall have power to reclassify such
customer as justice may require.
SEC. 3. No member of the Division may market his products
through a manufacturer's distributor or sales agent who is not com-
plying with the terms of Articles III and IV of this Chapter.
SEC. 4. Within ten days after the date of approval of this Code,
each member of the Division shall publish and file with the Divi-
sional Authority a schedule of its prices and terms of sale for each
of the classes of customers referred to in Section 1 of this Article,
except manufacturers' distributors and sales agents, on all standard
products sold by it. All such price schedules shall be open to in-
spection at the office of the Divisional Authority. The Divisional
Authority shall furnish copies of such schedules to any member of
the Division who makes application therefore.
SEC. 5. No member of the Division shall sell any standard prod-
uct at prices lower or on terms more favorable than the prices and
terms in his price schedules and price lists filed, pursuant to Section
4 herein, unless he has first filed revised schedules and lists to
take effect in not less than five days from date of filing. The
Divisional Authority shall promptly after receipt of such revised
schedules and lists notify all members affected. Such affected mem-
bers may thereupon file with the Divisional Authority revisions of
their price lists, which, if filed prior to the date when the revised
price list first filed shall go into effect, may become effective on said
date.
ARTICLE IV

A. TRADE PRACTICES

SECTION 1. All shipments of goods shall be made and invoices
rendered at prices and terms as shown on the member's schedule of
prices in effect at the time of sale, and such invoices shall show
accurately quantities, grades, types, sizes, colors, gauges, and other
features exactly in accordance with the shipment made.
SEC. 2. No member of the Division shall offer or give any special
terms, prices, consignments, allowances, secret rebates, either directly
or indirectly, or any concessions of any kind or description not shown
on the member's published schedule of prices.
SEC. 3. No member of the Division, for itself or through its sales-
men or other employees, shall engage in lavish entertainment of
customers or their employees, or permit bribes of any kind or descrip-
tion, or engage in gambling or bets of any nature with the intention
of losing, or make loans to customers or their employees, or sub-
normally price any other product manufactured and/or sold by the
member, or engage in any other act or practice commonly known as
"commercial bribery", for the purpose of selling merchandise or
to lower its cost to the purchaser.
SEC. 4. Terms of shipment shall be f.o.b. point of shipment, except
at the discretion of the seller, transportation charges on shipments
of 100 pounds and over may be allowed. In the event that the means
of transportation employed results in a cost in excess of the pub-
lished freight rates from point of origin to destination, then the





103

transportation allowance shall not exceed the published freight rate
applicable to the tonnage involved in the shipment.
SEC. 5. Violation of any schedule filed with the Divisional Author-
ity as provided in this Code, or the violation of any of the provi-
sions of this Code shall be considered an unfair trade practice, and
subject to the penalties of the Act.

ARTICLE V

A. ALTERATIONS OR AMENDMENTS

SECTION 1. Any addition, alteration, or amendment of this Code
which has the approval by concurrent vote, of a majority in number
and in volume of the Divisional Code members shall be presented to
the Code Authority in accordance with Chapter I, Article III-A,
Section 2.












CHAPTER VII


MECHANICAL RUBBER GOODS DIVISION

ARTICLE I

A. DEFINITION

SECTION 1. The Mechanical Rubber Goods Division shall consist
of all members of the Industry engaged in the manufacture for
sale of all types of belting other than leather and balata, hose of
all types, rubber cord and thread; jar rings, rubber friction tape,
rubber splicing compound, rubber mats and matting, rubber tubing-
all types of mechanical rubber molded and lathe-cut and extruded
goods, rubber packing of all types; rubber-covered rollers and rubber
rolls, and such other articles as are generally considered as Mechan-
ical Rubber Goods.
ARTICLE II

A. ADMINISTRATION

SECTION 1. A Mechanical Goods Divisional Code Authority con-
sisting of three persons (herein referred to as the Divisional Au-
thority) is hereby set up for the administration of this Code in
accordance with Chapter I, Article III-A. Such representatives
shall be elected by a majority in number and volume of the Divi-
sional Code members.
ARTICLE III

A. MARKETING STANDARDS

SECTION 1. To assist in providing uniform trade practices and pre-
venting discrimination and unfair competition, group customer clas-
sifications, definitions, based upon differences in costs and services
rendered, may be adopted by the Division, subject to the approval
of the Administrator, for the following classifications under the title
of Definitions of Buyers of Mechanical Rubber Goods" and such
definitions shall be filed from time to time with the Association.
(104)





105


Classification of Buyers of Mechanical Rubber Goods:
Jobbers and Mill Supply Houses
Distributors
Dealers
Mail Order-Chain Stores
Department Stores
Syndicate Buyers
Equipment Manufacturers
Industrials
Government:
Federal
State
County
Municipal
Consumers
If such definitions shall by virtue of their application, pursuant
to this Chapter, work hardship on any member of the Division or
customer, such member or customer may apply to the Divisional
Authority, which shall have power to reclassify such customer as
justice may require.
SEC. 2. Each member of the Division shall establish a price sched-
ule for standard goods, as recognized by the Division, properly ap-
plicable to each classification and price lists for goods made to
recognized standard specifications. Having established such price
schedules and price lists, which may be revised from time to time,
they shall be filed with the Association on or before the date speci-
fied by the Divisional Authority.
SEC. 3. If any member of the Division wishes to make a sale of
merchandise classed as overstock or obsolete material, or below value
for any cause at less than the minimum price as determined by the
Cost Recovery Formulae in Chapter I, Article VII, such member
shall apply to the Divisional Authority for its sanction to so dispose
of such products. Such request shall be in the form of a written
application stating the reason therefore, together with such data as
will support such request, and such member shall furnish such addi-
tional information, at its own expense, as the Divisional Authority
may require. The Divisional Authority, following such procedure
as it shall establish, shall consider such application, and if on inves-
tigation it shall find that any such proposed sale at less than the
minimum price so determined may constitute unfair competition, it
may disapprove the same. If the Divisional Authority does not
notify such member of its decision within ten (10) days after receipt
of application, such member may appeal to the Administrator.
ARTICLE IV

A. SELLING SCHEDULI

SECTION. 1. No member of the Division shall initiate a price not
in accordance with Chapter I, Article VII. No member shall sell
any standard goods or goods made under recognized standard speci-
fications at prices lower or on terms more favorable than the prices
and terms in his price schedules and price lists filed pursuant to





106


Article III of this Chapter, unless he has first filed revised schedules
and lists to take effect in not less than 10 days from date of filing.
The Association shall promptly after receipt of such revised sched-
ules and lists notify all members affected. Such affected members
may thereupon file with the Association, if they so desire, revisions
of their price lists which, if filed prior to the date when the revised
price lists first filed shall go into effect, may become effective on said
date.
Sec. 2. On goods made to customers' specifications the minimum
selling price of any member of the Division shall be the cost of the
most efficient member of the Division, i.e., that representative mem-
ber of the Division whose cost is lowest. Each member of the
Division shall compute his own individual costs on such goods, ac-
cording to the methods of cost determination and the cost account-
ing formulae adopted by the Association and this Division pursuant
to Section 1 of Article VII of Chapter I of this Code and report
the same to the Association. The Association shall ascertain the
costs of the most efficient member of the Division and publish such
figures to the Division. Such lowest cost finding shall be revised
from time to time at reasonable intervals. Nothing herein contained
shall be construed to permit any member of the Division to initiate
a price which will result in the customer paying less than the mem-
ber's own individual cost, as provided in Section 2 of Article VII
of Chapter I.
ARTICLE V

A. TRADE PRACTICES

SECTION 1. Uniform terms of sale shall be established by the
Divisional Authority, subject to the approval of the Administrator,
which may include freight paid or allowed to customer. In no
case shall the freight allowed by any member to any customer be
more than the published freight rate by the route used from the
member's factory to the destination.
SEC. 2. No member of the Division shall offer or give any dis-
counts other than those specified in such member's price schedules
or price lists, on file with the Association. After January 1, 1934, no
member of the Division shall offer or give any rebates or bonuses, to
any classification of buyers.
SEC. 3. No guaranty or warranty shall be made in connection with
any product sold, other than the standard guaranty of the Associa-
tion, which is: This merchandise is warranted to be free from de-
fects of workmanship and material. The seller's liability hereunder
is limited to the purchase price of merchandise which has failed
through defect or, at the seller's option, to the replacing of such mer-
chandise upon its return by the buyer with other merchandise of the
quality warranted and with due allowance made for the service ren-
dered by the merchandise returned."
SEC. 4. No guaranty against decline of price on contracts or orders
shall be made to anyone-excepting, however, such items of seasonal
character as may be specified by the Divisional Authority, subject
to the approval of the Administrator. Any such guaranty shall
apply only to the unshipped portion of any contract or order.





107


SEC. 5. No member of the Division shall enter into any contract
for furnishing any of his products contingent upon the sale or pur-
chase of any other thing, the performance of any other service, or
any other contingency not appearing in the contract or complying
with this Code.
SEC. 6. No member of the Division shall furnish without charge
samples of products in excess of what are actually required reason-
aby to serve the intended purpose.
SEC. 7. No member of the Division shall permit or extend exclusive
missionary sales help to any one distributor of its product for a
period in excess of 90 days in any one year.
SEm. 8. No member of the Division shall either post-date or pre-
date any invoice for his product for the purpose of achieving an
unfair competitive advantage.
SEC. 9. Violation of any schedule filed with the Association as pro-
vided in this Code, or the violation of any of the provisions of this
Code shall be considered an unfair trade practice and subject to the
penalties of the Act.
ARTICLE VI
A. GENERAL
SECTION 1. The Divisional Authority shall make such studies of the
productive capacity of the Division as may be desirable from time
to time and make recommendations as to its findings to the Ad-
ministrator.
ARTICLE VII
A. ALTERATIONS OR AMENDMENTS
SECTION 1. Any addition, alteration, or amendment of this Code
which has had the approval of the majority of the Divisional Code
members in number and in volume, shall be presented to the Code
Authority in accordance with Chapter I, Article III-A, Section 2.











CHAPTER VIII


SPONGE RUBBER DIVISION

ARTICLE I

A. DEFINITION

SECTION 1. The Sponge Rubber Division shall consist of all mem-
bers of the Industry engaged in the manufacture for sale of any type
of sponge rubber products.

ARTICLE II

A. ADMINISTRATION

SECTION 1. A Sponge Rubber Divisional Code Authority consist-
ing of three persons (herein referred to as the Divisional Authority)
is hereby set up for the administration of this Code in accordance
with Chapter I, Article III-A. Such representatives shall be elected
by a majority in number and volume of the Divisional Code
members.
ARTICLE III

A. TRADE PRACTICES

SECTION 1. No member of the Division shall depart from the
following standard terms of sale:
(a) The maximum cash discount of 2%, 10 days-net 30 days
except that where a member of the Division is regularly supplying
a customer the 2% discount may be extended up to the 25th proximo.
(b) Freight may be paid or allowed to customer, but in no case
shall the freight allowed by any member of the Division exceed the
published freight rate via the route used from the member's factory
to destination.
All quotations and order acknowledgments shall specify that the
prices do not include sales taxes and shall be subject to increase to
cover any taxes or any other increased costs directly due to the
enactment of present or future legislation, either Federal or State.
SEC. 2. No member shall either postdate or predate invoices for
his product for the purpose of achieving an unfair competitive
advantage.
SEC. 3. No member of the Division shall dispose of any "seconds "
or obsolete merchandise without first reporting to the Divisional
Authority the approximate quantity, class of goods, the reason for
disposing of them in other than regular channels, or at other than
regular prices.
(108)





109


SEC. 4. No member of the Division shall let out the manufacture
of any products to nomeworkers.
SEC. 5. No guaranty or warranty shall be made in connection with
any product sold other than the standard guaranty of the Associa-
tion, which is: "This merchandise is warranted to be free from de-
fect of workmanship and materials. The seller's liability hereunder
is limited to the purchase price of merchandise which has failed
through defect or, at the seller's option, to the replacing of such
merchandise upon its return by the buyer with other merchandise of
the quality warranted and with due allowance made for the service
rendered by the merchandise returned."
SEC. 6. No member of the Division shall ship any merchandise
under any conditions on consignment to any classification of account.
. SEC. 7. No member of the Division shall furnish without charge
samples of products in excess of what are actually required reason-
ably to serve the intended purpose.
SEC. 8. No member of the Division shall enter into any contract
for furnishing any of his products contingent upon the sale or pur-
chase of any other thing, the performance of any other service, or
any other contingency not appearing in the contract or complying
with this Code.
SEC. 9. No member of the Division shall furnish an advertising
allowance of any kind.
SEo. 10. The violation of any provisions of this Code shall be con-
sidered an unfair trade practice and shall be subject to the penalties
of the Act.
ARTICLE IV

A. ALTERATIONS AND AMENDMENTS

SECTION 1. Any addition, alteration, or amendment of this Code
which has had the approval of the majority of the Divisional Code
members in numbers and volume shall be presented to the Code
Authority in accordance with Chapter I, Article Ill-A, Section 2.











CHAPTER IX


RUBBER SUNDRIES DIVISION
ARTICLE I

A. DEFINITION

SECTION 1. The Rubber Sundries Division shall consist of all
members of the Industry engaged in the manufacture for sale of
rubber sundries, including druggists', hospital, and medical rubber
goods except hospital sheeting, stationers' rubber goods, rubber
bathing apparel, rubber gloves, and other miscellaneous articles
made of rubber except as may be specifically covered by another
duly approved Code of Fair Competition.

ARTICLE II

A. ADMINISTRATION

SECTION 1. A Rubber Sundries Divisional Code Authority (herein
referred to as the Divisional Authority) is hereby set up for the
administration of this Code in accordance with Chapter I, Article
III-A.
SEc. 2. The Divisional Code Authority shall consist of the chair-
men of the several Subdivisions herein established, and the chair-
man of the Divisional Authority, all to be elected as hereinafter
described.
(a) The chairman of the Divisional Code Authority, and his
alternate, shall be elected by a majority vote (each Divisional Code
member having one vote) at a regular meeting of the Rubber Sun-
dries Division. The chairman, or his alternate, shall represent the
Sundries Division on the Rubber Code Authority, subject to the
qualifications contained in Chapter I, Article III.
(b) A chairman shall be elected for each of the following Sub-
divisions, consisting of members engaged in producing the class of
merchandise indicated by the title.
Stationers' Rubber Goods; Rubber Gloves; Druggists', Hospital,
and Medical Rubber Goods; Rubber Bathing Apparel.
(c) Each Subdivision shall elect a chairman by a majority vote
(each Divisional Code member shall have a single vote in each
Subdivision of which it is a member) who shall represent the Sub-
division as a member of the Divisional Authority.
(d) One alternate shall be elected by each Subdivision to repre-
sent the chairman of that Subdivision in his absence. No alternate
shall, however, be affiliated with any member of the Division already
represented on the Divisional Authority.
(110)






111


(e) Any additional Subdivisions may be established at the dis-
cretion of the Divisional Authority. Such additional groups, when
and if established, shall elect a chairman and an alternate as pre-
scribed under paragraphs (c) and (d) of this Section, who shall
represent such additional groups on the Divisional Authority.
(f) The Divisional Authority shall set up a Committee on Im-
ports consisting of three members whose duty it shall be to inves-
tigate and inform the President as to the importation of competi-
tive articles into the United States in substantial quantities or
increasing ratio to domestic production, on such terms or under such
conditions as to render ineffective, or to seriously endanger the
maintenance of this Code as provided in Section 3 (e) of the Act.
The Committee shall make such reports of its findings to the Divi-
sional Authority which shall inform the President through the
proper channels.
ARTICLE III

A. COSTS AND PRICES

SECTION 1. Within ten days after the date of approval of this Code,
each member of the Stationers' Rubber Goods Subdivision of the
Division shall publish and file with the Association complete sched-
ules of its prices, discounts, and terms of sale. All such schedules
shall be open to inspection at the office of the Association. The Asso-
ciation shall furnish copies of such schedules to all members of the
aforesaid Subdivision.
SEC. 2. No member of the Stationers' Rubber Goods Subdivision
shall sell any product thereof at prices or discounts lower or on terms
more favorable than the prices, discounts, and terms in his price
schedules and price lists filed with the Association in accordance
with Section 1 of this Article, unless he has first filed revised sched-
ules and lists to take effect in not less than ten (10) days from date
of filing. Promptly after receipt of such revised schedules and
lists the Association shall notify all members of the aforesaid Sub-
division who may thereupon file with the Association revisions of
their prices, discounts, and terms, which, if filed prior to the date
when the revised price schedules and price lists first filed shall go
into effect, may become effective on said date.

ARTICLE IV

A. TRADE PRACTICES

SECTION 1. No member of the Division shall depart from the fol-
lowing standard terms of sale:
(a) Maximum cash discount 2%, 10th proximo, except west of
Denver, Colorado, where terms may be 2%, 10th, second proximo, to
accounts to which shipments shall be made from shipping points east
of the Mississippi River. Provided, however, that seasonal items
may be sold on longer terms when sanctioned by the Divisional Au-
thority. If the Divisional Authority does not notify the member of
the Division who applies for longer terms, of its decision within ten





112


(10) days from the date of application, such member may appeal to
the Administrator.
(b) Where freight may be paid or allowed to customer in no case
shall such payment or allowance exceed the charge for the tonnage
involved at the published freight rate by the route used from the
member's factory to destination.
SEC. 2. Rebates, discounts, or bonuses shall not be given or extended
to any customer unless they are available to all customers of the same
class on equal terms.
SEC. 3. No merchandise shall be shipped on consignment, guar-
anteed sale, or terms other than those established under Section 1 of
this Article.
SEC. 4. No member of the Division shall let out any manufacturing
to home workers.
SEC. 5. No member of the Division shall furnish salesmen or
demonstrators for sales work other than for his own sales to his own
customers.
SEC. 6. No member of the Division shall either post-date or pre-
date invoices for his product for the purpose of achieving an unfair
competitive advantage.
SEC. 7. No member shall furnish an advertising allowance of any
kind.
SEC. 8. No member of the Industry shall usurp a design, style, or
pattern originated by another member of the Industry and/or
appropriate them for his own or customer's use during the twelve
months following its introduction.
SEC. 9. The violation of any of the provisions of this Code shall
be considered an unfair trade practice and shall be subject to the
penalties of the Act.
ARTICLE V

A. ALTERATIONS OR AMENDMENTS

SECTION 1. Any addition alteration, or amendment of this Code
which has had the approval of the majority of the Divisional Code
members in numbers shall be presented to the Code Authority in
accordance with Chapter I, Article III-A, Section 2.












CHAPTER X


RAINWEAR DIVISION

ARTICLE I

A. DEFINITIONS

SECTION 1. The Rainwear Division shall consist of all members
of the Industry engaged in the manufacture for sale of garments
made from rubberized or waterproof fabrics, commonly called rain-
wear, excluding oiled cotton garments. The manufacture of the
rubberized or waterproofed fabrics themselves is specifically in-
cluded under Chapter II of this Code.
SEO. 2. The term "manufacturing employee as used herein in-
cludes all employees engaged in the cutting, machine operating,
cementing, buttonhole-making and button-sewing operations in any
factory in the Division.
SEC. 3. The term nonmanufacturing employee" as used herein
includes all employees engaged in brushing or cleaning away the
threads from finished garments and folding them or in any other
miscellaneous nonmanufacturing process in any factory in the
Division.
ARTICLE II

A. ADMINISTRATION

SECTION 1. A Rainwear Divisional Code Authority consisting of
seven persons (herein referred to as the Divisional Authority) is
hereby set up for the administration of this Code in accordance with
Chapter I, Article III-A.
SEC. 2. The Divisional Authority shall consist of two representa-
tives selected from the Midwestern members of the Division, two
from New England, two from New York, together with one repre-
sentative from the Vulcanized Rainwear Subdivision. Such mem-
bers shall be elected by a majority of the members of the Division
in each of the three geographical areas specified, together with the
member so elected by the Vulcanized Rainwear Subdivision.
SEC. 3. Five members of the Divisional Authority shall constitute
a quorum and a majority of a quorum must be had before any
decision on any matter may be determined.

ARTICLE III

Notwithstanding the provisions of Article V, Chapter I, of this
Code, the following shall be the provisions as to hours and wages
for the Rainwear Division.
(113)





114


A. HOURS

SECTION 1. Except as herein below provided, no employee shall
work or be permitted to work in excess of 40 hours in an one week,
nor more than 8 hours in any 24-hour period. Such work shall take
place in five days of the week. exclusive of Saturday and Sunday,
subject to the right of the Divisional Authority, unaer special cir-
cumstances, to permit any or all members of the Division an excep-
tion from this particular restriction. Overtime shall be expressly
prohibited.
SEC. 2. Maintenance crews, engineers, firemen, electricians, ship-
ping crews, watchmen, and elevator operators shall not work or be
permitted to work more than 45 hours in any one week. Provided,
however, that this limitation of hours shall not apply in cases of
emergency, but in such cases all hours worked in excess of 45 hours
in any one week, shall be paid for at the rate of time and one third.
SEC. 3. Accounting, clerical, office, service, or sales employees (ex-
cepting outside salesmen) shall not work or be permitted to work in
excess of an average of 40 hours a week over the period of a month,
nor more than 48 hours in any one week.
SEC. 4. The maximum hours fixed in Sections 1, 2, and 3 shall
not apply to salaried employees in any managerial, executive,
clerical, supervisory, or technical capacity, receiving more than $35.00
per week, nor to any outside salesmen.
SEC. 5. No employee shall work or be permitted to work for a
total number of hours in excess of the number of hours prescribed
for each week and day, whether employed by one or more employers;
provided, however, that if any employee works for more than one
employer for a total number of hours in excess of such maximum
without the knowledge or connivance of any one of his employers,
such employer shall not be deemed to have violated this section.
SEC. 6. No employee shall be classified in any of the foregoing
excepted classes unless he performs functions identical with those
performed by employees thus classified on June 16, 1933.
SEc. 7. Immediately after the effective date of this Code, the
Divisional Authority shall begin an investigation to determine
whether or not the 40 hour week provision of this Article will result
in increased employment within the purpose and policy of the Act.
The Divisional Authority, not later than 90 days after the effective
date of this Code, shall report its findings to the Administrator so
that the Administrator may determine whether or not the provi-
sions of this Article as to maximum hours should be changed.
B. WAGES

SECTION. 1. Except as herein below provided no employee (other
than apprentices) shall be paid in any pay period, less than at the
rate of
For nonmanufacturing employees, $0.35 per hour.
For manufacturing employees, $0.40 per hour.
SEC. 2. No apprentice or learner shall be paid in any pay period
less than at the rate of twenty-eight cents ($0.28) per hour. Pro-
vided, however, that such apprentices or learners, where piece-work





115

is used, shall be paid at the piece-work rates paid to experienced
workers, but in no case less than the above minimum. Such appren-
tices shall be understood as persons who have worked or been em-
ployed in the Rainwear Industry for less than six weeks. Such
apprentices shall not constitute more than five (5) percent of the
manufacturing and nonmanufacturing employees in any one estab-
lishment.
SEC. 3. No salaried employee (except outside salesmen, office girls
and boys, and clerical apprentices) shall be paid less than at the rate
of-
$15.00 per week-Cities over 500,000 population or in the im-
mediate trade area of such a city.
$14.50 per week-Cities between 250,000 and 500,000 popula-
tion or in the immediate trade area of such a city.
$14.00 per week-Cities between 2,500 and under 250,000 popu-
lation or in the immediate trade area of such a city.
$12.00 per week-Towns of less than $2,500 population.
(a) Clerical apprentices during a six months' apprenticeship and
office girls and boys may be paid not less than 80% of the above
minimums. Such excepted office employees shall not exceed five (5)
percent of the total number of employees covered by this Section
in the employ of any member of the Division.
SEC. 4. Female employees performing the same work as male em-
ployees in manufacturing operations shall receive the same rates
of pay as male employees.
SEc. 5. This Article establishes minimum rates of pay which shall
apply whether an employee is actually compensated on a time rate,
piecework, or other basis.
SEC. 6. The existing amounts by which hourly earnings in the
higher paid classes exceeded the minimum rates herein specified, as
of July 1, 1933, shall be maintained.
SEc. 7. Equitable adjustments in all pay schedules of factory
employees above the minimum shall be made within thirty (30) days
after the approval of this Code, by any members of the Industry
who have not heretofore made such adjustments, and the first monthly
reports of wages required to be filed under this Code shall contain
all wage increases made since May 1, 1933.

C. POSTING LABOR PROVISIONS
SECTION 1. Every member of the Division shall prominently post
in the work rooms of his establishment or establishments copies of
Articles I, III, and IV of this Chapter together with copies of
Article IV of Chapter I.
ARTICLE IV
A. LIMITATION AS TO PLANT OPERATION
SECTION 1. No member of the Division shall operate his establish-
ment or establishments in excess of 40 hours per week; provided,
however, that if the application of this Section should work a hard-
ship on any member of the Division, such member may appeal to the
Divisional Authority or the Administrator for such relief as justice
may require.





116


B. USE OF CONTRACTORS

SECTION 1. All members of the Division who let out or cause their
garments to be made by contractors shall file the names and addresses
of all such contractors as are actually required, with the Divisional
Authority within thirty days after approval of this Code. Such
lists shall be revised from time to time. Members shall confine their
work to such contractors as may be so listed. Members shall not let
out or cause their garments to be made by contractors unless such
contractors agree to conform to the provisions of this Code as to
hours and wages in the course of the performance of such contracts.
Members shall pay such contractors not less than an amount sufficient
to enable such contractors thus to conform to the provisions of this
Code as to hours and wages, together with an allowance for the
contractor's overhead.

C. PERFORMANCE OF FACTORY OPERATIONS BY MEMBERS

SECTION 1. Any employer of the Division who directly or in-
directly works in his own factory in the capacity of a manufactur-
ing employee shall comply with the provisions of Article III-A of
this Chapter.
D. HOMEWORK

SECTION 1. No member of the Division shall permit or allow the
processing or manufacturing of any of his products except within
his own plant or plants and/or the plants of registered contractors,
as provided in Article IV-B. In particular, but without limitation,
it is hereby provided that no part of such processing or manufac-
turing shall be done in the homes of any employees.

E. UNSAFE PREMISES

SECTION 1. No member of the Division shall cause or permit any
work to be done in tenement houses, basements, or any unsanitary
building or in buildings unsafe on account of fire risks.

F. USE OF LABELS

SECTION 1. The Divisional Authority may, within 60 days after the
approval of this Cod6, make recommendations to the Administrator
regarding the use of any N.R.A. insignia solely by those members
of the Industry who have assented to and are complying with this
Code.
ARTICLE V

A. COSTS AND SELLING PRICES

SECTION 1. Each member of the Division shall compute his own
individual costs for standard lines on the basis of the cost-accounting
system provided in Article VII of Chapter I and report the same
to the Association. From these reports, the Divisional Authority
shall ascertain the cost of the most efficient member of the Division-






f1i


i.e., that representative member of the Division whose cost is lowest-
and publish such findings to the members of the Division. Such
findings shall be revised from time to time at reasonable intervals.
Thereafter no member of the Division shall sell any standard line of
product below such cost. No member shall initiate a selling price on
any special line which shall be below his own' individual cost of
production as provided in Article VII of Chapter I.
ARTICLE VI

A. TRADE PRACTICES

SECTION 1. No member of the Division shall offer a cash discount
which exceeds 8% 10 days, E.O.M. No other discounts whatsoever
nor any rebates shall be given to any buyers, buying offices, or other
customers. Goods shipped after the 25th of the month may be billed
as of the first of the following month. These terms shall not apply
to Vulcanized Clothing.
SEC. 2. No member shall depart from the following standard terms
of sale for Vulcanized Clothing:
(a) Terms to Jobbers: 3% 10 days; 2% 70 days; net 71 days; no
post-dating.
(b) Terms to Retailers: Not more than 8% 10 days, E.O.M.; net
thereafter.
(c) If payments are not made on or before the net due date, there
shall be a charge for interest at the legal rate.
(d) No prepayment or allowance of freight shall be made, except
on shipments of 100 pounds or more.
(e) No parcel-post or express charges shall be allowed in excess
of freight allowance applicable to such shipment if shipped by
freight.
SEC. 3. No member of the Division shall ship merchandise on
memorandum or on consignment.
SEC. 4. The following shall be the standard sizes in the Rainwear
Division:
Infants, 2 to 6. Misses, 14 to 20.
Girls, 6 to 16. Ladies, 34 to 44.
Boys, 6 to 16. Men's, 34 to 46.
Boys (vulcanized), 4 to 18.
.Where Boys sizes 18 to 20 (excluding 18 on vulcanized clothing),
Ladies' sizes 46 to 52, Men's sizes 48 to 52 are ordered, the selling
price shall truly reflect the increased cost.
SEO. 5. No merchandise purchased and shipped in good faith and
in accordance with the buyer's specifications shall be permitted to
be returned for credit by any purchaser after five (5) days from its
receipt by the purchaser.
SEC. 6. No order shall be accepted without stipulating the sale
price, terms, and date of shipment. No sale shall be made by any
member on any other terms except those expressly set forth in the
order, contract of sale, or the invoice pertaining to such sale.
SEC. 7. No member of the Division shall make any allowance or
discounts for advertising or for payment for space in newspapers,




UNIVERSITY OF FLORIDA
IIIllNI IIIIYi UII 111IIIIIIIII Il Ill
118 3 1262 08585 2928
magazines, guides, or directories on behalf of any retailer to be used
in promoting the sale of merchandise by such retailer to the aoQ
summer. The supplying of cuts, matrices, and window cards shall,
however, not be included in such prohibition.
SEC. 8. The pirating of styles and designs shall be prohibited.
SEC. 9. Any violation of any of the provisions of this Code shall
be an unfair trade practice and subject to the penalties of the Act.
ARTICLE VII
A. ALTERATIONS AND AMENDMENTS
SECTION 1. Any addition, alteration, or amendment of this Code
which has had the approval of a majority of the Divisional Code
members in number and in volume shall be presented to the Code
Authority in accordance with Chapter I, Article III-A, Section 2.
Approved Code No. 156.
Registry No. 899-04.

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