NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
CREPE PAPER INDUSTRY
AS SUBMITTED ON AUGUST 30, 1933
REGISTRY No. 405-13
The Code for the Crepe Paper Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
For e by the Superintendent of Documents, W gto D.Price 5 cen
For sale by the Superintenennt of Documents, Washington, D.C. - Price 5 cents
I I .
GENERAL CODE OF FAIR COMPETITION FOR THE CREPE
To effectuate the policies of Title I of the National Industrial
Recovery Act the following is hereby established as a Code of Fair
Competition for the Crepe Paper Industry.
The words used herein are hereby defined as follows:
Industry "-The manufacture in the United States of plain
crepe paper in bulk, package, and/or Jumbo rolls, (single, duplex,
or triplex) ; printed crepe paper, stock or special including borders;
crepe shelf paper; crepe paper streamers, plain or printed.
Member "-A. person engaged in such industry.
Crepe Paper Industry Authority "-The Body herein created
charged with authority to administer this code.
"Act "-The National Industrial Recovery Act.
"Administration "-The National Industrial Recovery Adminis-
"'Administrator "-The National Industrial Recovery Adminis-
Person "-Includes partnerships, corporations, and associations,
except associations not for profit.
ARTICLE II-CREPE PAPER INDUSTRY AUTHORITY
1. There is hereby created a body to be known as the Crepe Paper
Industry Authority which is charged generally with the duty of
administering this code and shall have such other powers and duties
as are hereafter prescribed.
2. The Crepe Paper Industry Authority shall consist of Executive
Committee of the National Crepe Paper Association of America,
Executive Manager, and of three additional members designated by
the Administrator; members so designated shall have no vote but in
all other respects shall be members of said Crepe Paper Industry
1. On and after the effective date of this Code employers in this
industry shall not operate on a scale of hours of labor for their
employees engaged in the manufacture of their products except
supervisory staff, mechanics, and others engaged in the preparation,
care, maintenance, and repair of plant, machinery, and facilities of
and for production, watchmen, cleaners, truck drivers, and helpers in
excess of forty (40) hours per week or more than eight (8) hours in
any one day, provided, however, that to meet seasonable requirements
or emergencies manufacturers may work labor in excess of such
maximum hours seventy-two (72) hours overtime for an individual
worker within any one calendar year within the further provision
that in no case shall the overtime exceed eight (8) hours in any one
2. On and after the effective date of this Code the maximum num-
ber of working hours of all employees engaged in clerical and general
office work in this industry shall be eight (8) hours a day and forty
(40) hours per week except supervisory staff, watchmen, cleaners,
bookkeepers, and accountants, and persons engaged in the servicing
and repair of inside and outside equipment carried on in connection
with sales activities. It is provided, however, that individuals en-
gaged in clerical and general office work may work a maximum of
eight (8) hours of overtime in any one week provided that the indi-
vidual works a corresponding amount of undertime in succeeding
weeks within the next succeeding six weeks, with the further provi-
sion that in no case shall the individual worker exceed an average of
forty (40) hours per week within each six-week period. The pro-
visions of this paragraph shall not apply to salesmen or to persons
employed in branch offices where not. more than two persons are
engaged in clerical or general office work, or in branch warehouses
where not over two (2) men are employed in general warehouse
3. The minimum wage for all employees engaged in the manu-
facture of the products of this Industry (except learners during
two (2) months apprenticeship or semipensioners) who are com-
pensated on a time or piecework basis shall be not less than thirty
cents (300) per hour for females and thirty-five cents (35t) per
hour for males. In the following states named in this paragraph
a differential of five cents (50) below the respective hourly rates
above mentioned will be permitted: North Carolina, South Carolina,
Georgia, Florida, Alabama, Mis5issippi, Louisiana, Tennessee.
4. The minimum compensation of all other employees in this
Industry in any department or branch of the business (except learn-
ers during three (3) months' apprenticeship or semipensioners shall
be: Not less than twelve dollars ($12.00) per week for an average of
forty (40) hours per week within any six-week period.
5. Maximum hours of labor shall not. apply in cases of emergency
for protection of property.
6. Employers shall not reduce the rate of compensation per hour
for employment now in excess of the minimum rates above specified.
7. Each employer will furnish the Association duly certified re-
ports in such form as may hereafter be provided showing actual
hours worked by individuals or occupational groups or employees
and wages paid the various occupational groups.
8. Employees shall have the right to organize and bargain collec-
tively 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 of protection; no em-
ployee and no one seeking employment shall be required as a con-
edition of employment to join any company union or to refrain from
joining a labor organization of his own choosing.
9. Nothing in this Code is to prevent the selection, retention and
advancement of employees on the basis of their individual merit with
regard to their affiliation or nonaffiliation with any labor organiza-
10. No one under sixteen (16) years of age will be employed in
ARTICLE IV-HouRS or OPERATION OF 'MACHINERY
On and after effective date no employee shall operate crepe ma-
chines for more than one hundred forty-four (144) hours per week.
ARTICLE V--TRADE PRACTICE RULES
The industry adopts the following trade practice rules, the viola-
tion of which shall be deemed to be unfair methods of competition
in commerce within the meaning of the Federal Trade Conmmission
Act as amended, and a violation of this code.
1. Selling below cost.-The selling of any crepe paper or crepe
paper products below the average cost, as determined on the basis of
uniform principles of accounting, shall constitute unfair competition.
Cost. is defined as including all cost at the time of delivery to the
buyer, including among other items all materials, waste, cost of re-
jections, allowances and seconds, and labor and overhead costs, as
well as all charges such as interest on capital invested, salesmen's,
agents' or brokers' commissions, depletion, obsolecence, and proper
2. Publication of and adherence to pr;ce.,.-Manufacturers will
strictly adhere to their published prices, differentials, and terms,
and each manufacturers will publish and file his complete price lists
with all differentials and terms with the Secretary of the National
Crepe Paper Association of America.
3. C(om.pletcnes of contract.-The making of incomplete, am-
biguous, and deceptive contracts provides a medium for making
unfair and discriminatory prices, induces fraud and repudiation
thereof, gives rise to disputes, and disturbs stability in business oper-
ations, and it is, therefore, declared that all contracts for the sale
of products falling within the field of this Code shall contain a
definite and true statement of the product covered, price, quantity,
terms of payment, place of delivery, date, name of purchaser, and
all other items necessary to form a complete contract, and that all
contracts so entered into shall be in conformity with this Code and
performed in letter and spirit. It is further declared that in order
to carry out the foregoing, all invoices shall contain a full state-
ment of all facts necessary to make such invoice a full and complete
record of the transaction represented on the face thereof, and such
invoices and all books of record pertaining thereto shall be available
at all times to such authorized officers or agents of the group asso-
ciation within whose scope the product covered by such contract
shall fall, or to an authorized accounting firm as may be determined
by such association.
4. Inducing breach of contract.-Inducing or attempting to induce
the breach of a contract between a competitor and his customer
during the terms of such contract is an unfair method of competition.
NoTE.-Whenever notice of the existence of a contract is brought
to the attention of any person, he shall promptly discontinue all
efforts which might induce a contracting party to break such
5. Repudiation of contracts.-Contracts are business obligations
which should be performed in letter and in spirit. The repudia-
tion of contracts by seller on a rising market, or by buyer on a
declining market, is equally reprehensible. Such action shatters
confidence, induces violent fluctuations in price, destroys stability
in business operations to the consequent injury of the industry, as
well as to the general public, and is an unfair trade practice.
6. Invoicing less quantity than actual shipment.-The practice of
invoicing a less quantity than the actual amount shipped is an unfair
6a. Premiums or free goods.-Premiums or free goods which con-
stitute a reduction in price is an unfair trade practice.
7. Coercion..-The practice of compelling the purchase of one or
a group of products, as a condition to the purchase of a desirable
item, is an unfair trade practice.
8. Selling goods on consignment shall constitute a violation of
9. No manufacturer, agent, or wholesaler shall be permitted to
offer or sell to the retail trade for advertising or any other pur-
poses, merchandise at a price less than the industry of that class
of merchandise has established as a fair wholesale price for it.
10. Selling of merchandise at a price reduced from a fictitious
or any unreasonably marked-up prices, will constitute a violation
of this code.
11. Not to pe rm!t bribery.-It is the opinion of the industry not
to permit the secret gift of any commission, gratuity, or any other
thing of value to employees of concerns to whom we sell; and we
further agree not to allow our salesmen expense money for any
other purpose than for legitimate expenses, and not to permit any
funds to be dispensed in any unethical way to influence business.
12. Advertising, deceiving purchasers.-Advertising by use of
printed word or pictorial representation, or radio, or otherwise for
the purpose of, or with the effect of misleading or deceiving pur-
chasers with respect to the quantity, quality, grade, or substance of
goods purchased, is an unfair method of competition.
13. Securing information from competitors concerning their busi-
ness by false or misleading statements or representations or by false
impersonations of one in authority, or securing information con-
cerning competitor's business by bribery of their employees, and
the wrongful use thereof to unduly hinder or stifle the competition
of such competitors is an unfair trade practice, and a violation of
14. Imitation of trade marks or trade names.-The imitation of the
trade mark or trade name of a competitor results in the deception
of buyer and consumer, is an invasion of the property rights of
such competitor, and is an unfair trade practice.
15. Enticement of emnployees.-Interference with competitor's busi-
ness through the enticement of an employee from his employment is
an unfair trade practice.
16. Defamation of competitor or disparagement of his goods.-The
defamation of a competitor by words or acts imputing to him dis-
honorable conduct, inability to perform contracts, or questionable
credit rating, or the false disparagement of the grade of quality of
his goods is an unfair trade practice.
17. Threats of suit for patent or trade-mark infringement.-The
circularization of threats of suit for infringement of patent or trade
mark among customers of a competitor, not made in good faith
and for the purpose of harassing and intimidating customers, is an
unfair trade practice. The owner of a patent or trade mark should
in fairness deal directly with the alleged infringer rather than
attempt to intimidate his customers.
18. Use of inferior materials.-The use of any inferior materials
which tends to bring crepe paper and crepe paper products into dis-
repute or to defraud the buyer or the public, is an unfair trade
19. Secret rebates.-The secret payment or allowance of rebates,
refunds, commissions, credits, or unearned discounts, whether in
the form of money or otherwise, or secretly extending to certain pur-
chasers special services or privileges, not extended to all purchasers
under like terms and conditions, constitutes a violation of this Code.
20. "Guarantee against decline.-Guaranteeing either dealers' or
wholesalers' floor stock against decline from price shall be an unfair
21. MIsbranding.-Mismarking, misbranding, or misrepresenta-
tion of goods shall be an unfair trade practice.
22. Deliveries not conforming to sample or order.-The practice
of shipping or delivering products which do not conform to the
samples submitted or representation made prior to securing the
order constitutes a violation of this code.
23. Deviations from standards.--Deviation from the established
standards of the industry by any deceptive or false means or device,
with the effect of misleading or deceiving purchasers or prospective
purchasers, constitutes a violation of this code.
24. Guarantee to sell below competitors' published or 'nown.
prices.-The use of or participation in the publishing or broad-
casting of any statement or representation, which lays claim to a
policy or continuing practice of generally underselling competitors,
is an unfair and uneconomical practice and is a violation of this code.
Seconds and close-outs.-The selling of obsolete, damaged or re-
jected crepe paper as seconds shall be limited to'a period of six
months from the date of this code. Further extensions may be
granted by action of the Executive Committee with the approval
of the membership as a whole. During this period (six months)
seconds can be sold only to jobbers and converters.
Bulk crepe paper for resale.-All sales made by any one jobber,
broker, commission broker, display company, or manufacturer to
be made at not less than the manufacturer's published price list, the
price governing the quantity to be shipped, billed, and delivered at
one time according to manufacturer's published price list.
PricMig.-No manufacturer shall deduct the 2% discount from
prices when quoting to a customer.
Length of crepe paper.-The maximum length of a. standard fold
of paper shall be ten feet. four inches. This additional four inches
is given to allow for contraction in the paper.
C'repig ratios.-The following are the standard creping ratios
which are most generally in use and we recommend them for
21- to 1, 150% Stretch.
214 to 1, 125''. Stretch.
2 to 1, 100(i Stretch.
134 to 1, 75'. Stretch.
11. to 1, 50%) Stretch.
114 to 1, 25., Stretch.
Standards of tis.u .-The basis weight of tissue shall not be more
than 10.44 lbs. to ream 24" x 36", with 5%: tolerance, and for each
half point additional weight, an up-charge of not less than 20 per
gross shall be made.
i,,'atches, eCec'tos, and catalogues.-It shall be a fair trade prac-
tice to furnish customers with sample swatches or printed inserts of
regular grade of crepe paper. Advertising electros also furnished
without charge. It shall be an unfair trade practice to defray all or
any part of a. catalogue cost.
.Mii j inm wage .scale.-Minimum wage rates are as follows:.
Crepe machine operators, $.621.2 per hour.
Color mixers, $.6`21..2 per hour.
Crepe Cutters, $.371.2 per hour.
Crepe Packaging, $.371- per hour.
ARTICLE VI-PRICE SCHEDULE
1. Each manufacturer must publish a price schedule with differ-
entials between sales in various quantities, such schedules to be
based on manufacturers' weighted costs of all materials at prevailing
'. All sales made to a jobber, broker, commission broker, or manu-
facturer to be made at the price governing the quantity to be shipped,
billed, and delivered at one time to one point of destination.
3. Orders taken from a number of customers to be pooled, shipped,
and billed to one customer or each individual customer must be sold
at the price prevailing for the quantity delivered to each customer,
whether sold by a manufacturer, broker, commission broker, or
4. Contracts may not be made covering a quantity of napkins,
applying quantity price and splitting billing or delivery.
5. No sales to be made direct to large consumers buying direct
from manufacturer, unless they be made at, the price prevailing for
quantity shipped and delivered at one time, and one destination, and
according to zone of ultimate destination.
6. No drop shipments to be made to jobbers' customers unless they
be made at the price prevailing for quantity shipped f.o.b. mill, and
according to zone of ultimate destination.
The industry recommends its approval of the practice of handling
disputes in a fair and reasonable manner, coupled with the spirit
of moderation and good will, and every effort should be made by the
disputants themselves to arrive at an agreement. Any complaints,
differences, controversies, or questions of unfair competition arising
under or out of this Code, or concerning the interpretation or appli-
cation of any provisions thereof, shall be determined in accordance
with the procedure outlined in the articles of the National Crepe
Paper Association of America.
This Code shall be in full force and effect when signed by Execu-
tives with power to act for the following firms in this industry:
And approved and accepted by the President of the United States.
Nothing herein contained shall be construed to hinder or prevent
any party to the foregoing from making application or having re-
course to a Court of Law or Equity.
We and each of us, representing at least 75% of the concerns
in the industry of manufacturing crepe paper and crepe paper
products, hereby agree and pledge ourselves to a full perform-
ance of the provisions of this Code of Fair Competition under the
National Industrial Recovery Act as passed by the Congress
June 13. 1933, and signed Iy the President of the United States
June 16th, 1933.
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