Proposed code of fair competition for the paper manufacturing industry as submitted on July 24, 1933


Material Information

Proposed code of fair competition for the paper manufacturing industry as submitted on July 24, 1933
Physical Description:
12 p. : ; 23 cm.
United States -- National Recovery Administration
Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


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


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
"Registry No. 406--02."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004886553
oclc - 63654628
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Full Text

Registry No. 406-02







Is. I)* -

The Code for the Paper Manufacturing Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry


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





1. This application is made by the National Paperboard Asscia-
tion, a trade association, the membership of which consists of a sub-
stantial majority in nIumbilIers and in volume of the producers of paper
The (Committee ,presenting this application \vwa duly appoiilted.
and authorized fur such purpose, by vote of the industry in open
It i., the desire of the National Paperhbard Association and other
member., of the industry to cooperate with the President of the
United States in increasing employment and wages and to take such
further steps, iubject to the approval of the Prestilent, as may be
1nece.-sar to mk11We po.ssile siuch increase in employment and wages.
()n MayN 1. 1 9l:3. there w\a- ildlivered to the Presildelt a tatviiemeit
offering sulbtalltially to reduce hours of labor and to il,'.iEe em-
phloyment an(l waV!c-. andl reon l0inendlinuL legislation relieving indus-
try from tile Anti-Trust In, v with respect to (coi,-is or agri.-,mlenlt
aplprovede byIh ti,. ,,\irnimilnt. the same to be bindingi upon all ]mem-
her:s of an indusmtry. Such sntatluen, included an outline of an in-
dustry plan which. except for detail, is the plan set forth in the
Competition Section of the annexed code.
At the time thi. statement was transmitted to the Pr'sident, the
membership of tlie National Paperboard ,Association included over
!9 percent of the ,produlcers of paper board. About a week prior to
the enactment of the National Recovery Act, the following paper
board producers, constituting about 14 percent in volume of the
industry, resigned frm the Asociation:
Southern Kraft Co',rp., Pamnama City, Fla.-Bastrop, La.
Bogalusa Paper (o., Inc., Bogalusa, La.
Allbenaarle- 'hesalpealke Co., Inc., West Poiiint, Va.
L(ongmiew Fibre 'Company, Longview, Wash.
The members of tlie paper board industry as early as January
1933 recognized that great excess capacity and the effort of the in-
dividual to operate beyond industry average was resulting in price
demoralization and harm to the industry and to the public, and sub-
scriled to the principle that each individual operator should carry
it. fair share of the industry burden and that the inldustry uNrd!ren.
beinz excess capacity, each individual operator should own, or op-
eratively control, excess capacity which was in proportion to the
industry excess capacity.
9447-33 (1)

The members of this industry at such time further subscribed to
the principle that individual operators who sought to escape their
fair share of the depression burden, should not be permitted so to
do except on a basis which would not work injury to employees, to
capital invested in the industry, and to the public.
In formulating the plan set forth in the Competition Section of
the annexed code, the industry has taken into consideration the prin-
ciple stated and the large cost advantage arising from increased hours
of operation.
It is not desired to control price, to restrict or allocate volume.
The purpose of the tax of $5.00 per ton individual operations in
excess of the industry average is to prevent price demoralization.
It is true that cost savings due to individual operating periods in
excess of industry average may be more than the tax. It is desired
to permit progress and volume increase arising from business ability,
quality, or other proper means, and it is believed that the annexed
code will not operate to preclude such progress by fair means. The
tax is intended as a balance against, and a deterrent to, securing in-
creased operation beyond that fairly and competitively possible with-
out resort to unfair, unreasonable, and demoralizing price cutting.
It is requested that the National Paperboard Association be con-
stituted and recognized as the agency, for the purpose of a code
covering labor and fair competition for the producers of paper board
of all kinds, and that such further action be taken with respect to
such code as shall be proper and permitted under the National Indus-
trial Recovery Act, and as shall be approved by the President of the
United States.
It is requested that the National Industrial Recovery Administra-
tion forthwith approve the labor provisions of the code herewith
submitted and that the labor provisions therein set forth shall be
applicable to and binding upon all producers of paper board in lieu
of the labor provisions set forth in proposed agreements by indi-
vidual manufacturers with the President, and that the individual
producers of paper board shall, upon such approval by the National
Industrial Recovery Administration, be exempted from execution of
the agreement proposed by the President, and shall be deemed to be
members of the National Recovery Administration.
Annexed hereto, and marked Exhibit A, is a list of the members of
the National Paperboard Association.
In case this code shall not cover the entire industry and all pro-
ducers of paperboard, it is respectfully requested that this applica-
tion for a code may be withdrawn.
Respectfully submitted.
JNo. L. BARCHARD, Hummel & Downing Co.,
Milwaukee, Wis.
D. H. PATTERSON, JR., Fibreboard Products,
Inc., San Francisco, Calif.
WILLIAM P. JEFFERY, Chairman, National
Paperboard Association, No. 1 Wall St.,
New York, N.Y.
For the Code Committee of the Paper Board Industry.
Dated JULY 24, 1933.


Albia Box & Paper Company, Troy,
Alton Box Board & Paper Co., Alton,
American Box Board Co., Grand
Rapids, Mich.
American Coating Mills, Elkhart, Ind.
Auglaize Box Board Co., St. Marys,
Ball Brothers Company, Muncie, Ind.
Bartgis Brothers Co., Ilchester, Md.
Bedford Pulp & Paper Co., Big
Island, Va.
Bicking Paper M1fg. Co., S. Austin,
Downington, Pa.
Bird & Son, Inc., East Walpole, Mass.
Bloomer Brothers Co., Newark, N.Y.
Carolina Fiber Company, Hartsville,
Central Fibre Products Co., Chicago,
Chemical Paper MAfg. Co., Holyoke,
Chesapeake Paper Board Co., Balti-
minre, MAd.
Clifton Paper Mills, Clifton, N.J.
Columbia Box Board Mills, Chatham,
Consolidated Paper Co., Monroe, Mich.
Continental Paper Co., Ridgefield
Park, N.J.
Container Corporation of America,
Chicago, Ill.
Cornell Wood Products Co., Chicago,
Coshocton Straw Paper Co., Coshoc-
ton, Ohio.
Davis Paper Company, West Hopkin-
ton. N.H.
Dresden Paper Mills Co., Dresden,
Elk Paper Mfg. Co., Childs, Md.
Fairfield Paper Co., Baltimore. Ohio.
Federal Paper Board Co., Bogota,
Fibreboard Products, Inc., San Fran-
eisco, Cal.
Flemiing & Sons, Inc.. Dallas, Texas.
Fort Oranue Paper Company, Castle-
tnn on Hudson, N.Y.
Franklin Board & Paper Co., Frank-
lin, Ohio.
Frazer Paper Co.. Ltd, Madawaska,
Robert Gair Co., Inc., New York, N.Y.
Gardner-Richardson Co., Middletown,
Hagar Straw Board & Paper Co., Ce-
darville, Ohio.
Halltown Paper Board Co., Halltown,

Hinde & Dauch Paper Co., Sandusky,
Huimmel & Downing Co., Milwaukee,
W is.
Lawless Bros. Paper Mills, East Roch-
ester, N.Y.
Lawrence Paper Co., Lawrence, Kans.
Liberty Paperboard Co., Inc., Steuben-
ville, Ohio.
Lydall & Foulds Paper Co., Manches-
ter, Conn.
MiacAndrews & Forbes Co., New York,
Mlac Sim Bar Paper Co., Otsego,
MREwan Brothers, Whipl)pany, N.J.
Meand Paperboard Corp., New York,
iiclhiian Carton Co., Battle Creek,
Mobile Paper Mills, Mobile, Ala.
M'orris Paper Mills, Chicago, Ill.
IMutual Boxhoard Co., Utica, N.Y.
National Foldiing Box Co., New Ha-
ven, Conn.
B. F. Nelson Mfg Co., Minneapolis,
Newark Boxboard Co., Newark, N.J.
New Haven Pulp & Board Co., New
Haven, Conn.
Ohio Boxboard Co., Rittman, Ohio.
Owens-Illinois Glass Co., Toledo, Ohio.
The Pairpoint Corporation. New Bed-
ford, Mass.
Prairie State Paper Mills, Joliet, Ill.
Penn Fibreboard Corp., New York,
Ravenswood Paper Mill Co., Long
Island City, N.Y.
River Raisin Paper Co., Monroe. Mich.
Robertson Paper Box Co., Montville,
Schmidt & Ault Paper Co., York, Pa.
The Shenandoah Boxboard Corp., Win-
chester, Va.
Smeallie & Voorhees, Inc., Amsterdam,
W. W. Snyder Mfg. Co., Cohoes, N.Y.
Sutherland Paper Co., Kalamazoo,
Tennessee Paper Mills. Chattanooga,
Terr,, H:rute Pnper Co., Terre Haute,
Toronto Paper Mfg. Co., Toronto,
United Paperboard Co., New York,
Upson Company, Lockprort, N.Y.
Waldorf Paper Products Co., St. Paul,


1. Collective barga;ining.-In conformity with the provisions of
Section 7 (a) of the National Industrial Recovery Act, the attitude
of this industry with respect to the labor of employees shall be as
(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;
(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, organizing, or assisting a labor organiza-
tion 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.
(d) It is clearly understood that the foregoing does not impair
in any particular the constitutional rights of the employee and em-
ployer to bargain individually or collectively as may be mutually
satisfactory to them; nor does it impair the joint right of employer
and employee to operate an open shop.
(e) Nothing in this code is to prevent the selection, retention, and
advancement of employees on the basis of their individual merit,
without regard to their affiliation or nonaffiliation with any labor
2. Ma.ximr'nu working hours.-The maximum number of working
house of all employees engaged in the production of paperboard
shall be eight. hours a day andl forty hours per week. Employees
may be employed for such additional hours in any week as shall
be necessary for maintenance of equipment, provided such additional
hours shall be permissible only with respect to employment on equip-
ment which is not in operation.
Such maximum hours of labor shall not apply in cases of emer-
gency for protection of property.
The provisions of this paragraph shall not apply to persons em-
ployed outside of the paperboard producing plant or premises, or
to foremen, superintendents, managers, officials, and other employees
heretofore compensated on a salary or fixed compensation basis.
3. Mhniornmu comnpensat'io.-(a) The minimum wage for all em-
ployees subject to the provisions of the foregoing paragraph 2 of
this code, who are compensated on a time or piecework basis, shall
be not less than 40 cents per hour, except in the case of mills located
in the South, the minimum shall be 30 cents per hour.
For the purpose of this paragraph, the South is defined as the
territory in the United States, south of the States of Virginia and

Kentucky, and east of the Mississippi River, anid including the entire
State of Louisiana.
(b) The minimum compensation of all other employees of any
producer of paperboard in any department or branch of the business
shall be:
Not less than $15.00 per week in any city of over 500,000 popu-
lation, or in the immediate trade area of such city;
Not. less than $14.50 per week in any city of between 250,000
and 500,000 population, or in the immediate trade area of such
Not less than $14.00 per week in any city of between 2,500 and
250,000 population, or in the immediate trade area of such city;
In towns of less than 2,500 population all wages shall be in-
creased by not less than 20 percent, provided that this shall not
require wages in excess of $12.00 per week.
(Population shall be based on the U.S. Census of 1930.)
(c) No person under 16 years of age shall be employed.
4. The provisions of Paragraphs 2 and 3 of this Code shall be
effective 15 days after approval of this Code or 15 days after the
labor provisions hereof shall be in force, whichever is the earlier
5. If the percentage of operation of any producer of paperboard
during any three months' period, beginning January 1, 1933, while
this Code shall be in effect, sllall be in excess of the industry per-
centage of operation during the same period, then the paperboard
producer operating in excess of the industry percentage shall be
$5.0't per ton for each ton of paperboard produced as a result of
operations in excess of the industry percentage. The three months'
period shall include the mailerer fraction of a week less than or more
than an exact three months, in order to avoid fractions of a week.
Any fractions of a week shall be added to or deducted from succeed-
ing periods as nece..,-ary to avoid elimination or duplication of time.
6. The percentage of operation and the resulting ton- upon which
such payment shall be based shall be determined as follows:
(a) The rated inch hours of a paper-board machine shall be the
width of the last drier in inches, multiplied for daily rating by 24
and for weekly rating by 144.
(b) The operated inch hours of a paper-board machine shall be
the number of hours of operation in any week, commencing Satur-
day, 7:00 a.m., multiplied by the width of the last drier in inches.
A shut-down of less than three hours shall not be deducted from the
period of operation.
(c) The percentage of operation for any period shall be the rated
weekly inch hours multiplied by the number of weeks of the period
for which the computation is made, divided into the total inch hours
actually operated during the same period.
(d) The Industry percent of operation shall be the sum of all the
rated inch hours divided into the actually operated inch hours of the
same machines, for which the audited record of operation is available
to the National Paperboard Association.
(e) For the purpose of determining the tons produced as a result
of operations in excess of the industry average, the tons produced per

inch hour during the quarterly period for which the computation is
made, shall be deemed to be the same for each inch hour operated
during the period.
(f) In case any producer of paperboard shall own or control under
recognized lease more than one paper-board machine, then the rated
inch hours and the inch hours operated of all paper-board machines
of such producer shall be combined for the purpose of determining
the operated percentage. In the case of a machine having three or
less cylinders, other than a machine operated on the production of
corrugating materials, which shall not have actually operated at
least. 25% capacity during any quarterly period, the rated inch hours
of such machine shall not be combined with the other inch hours of
the owner or lessee thereof, except upon approval of the Board of
Appeals referred to in Paragraph 20 hereof, and such Board of Ap-
peals is hereby given the power to allow or refuse the combined
rating thereof, or to allow partial rating. or to impose terms and
condition for combined rating, all as in the opinion of such Board
shall be proper.
7. Notwithstanding the foregoing provisions, any machine which
for the period, January 1, 1929, to May 31, 1933. shall have operated
in the production of paper board less than 2.'i of the total full-
rated inch-hours for such ,machine, then the rated inch-hours to be
allowed for such machine shall be only fifty percent of the full-rated
8. Notwithstanding the above provisions, no rated inch-hours shall
be allowed for any machine which shall not have operated on the
production of paper board during the period, January 1. 1929, to
May 31, 1933, and all paper-board production from any such ma-
chine shall be subject to the tax of $5.00 per ton.
9. In the case of machines subject to combined rating as provided
in subdivision (f) of Paragraph 6 hereof, the combined, and not the
individual machine record for the purposes of full. partial. or no
inch-hour rating, shall govern.
10. In case a paper-board machine is transferred by sale or recog-
nized lease, such machine shall have the same rated inch-hours in
the hands of the new owner or lessee as it had in the hands of the
party transferring same, provided that the rated inch-hours of any
machine acquired by sale or lease on or after July 15. 1933. shall not
be combined with the rated inch-hours of the paper-board producer
acquiring same except upon the written approval and consent of the
Board of Appeals, and such Board of Appeals is hereby granted
the power to exclude from combined rating the rated inch-hours of
any such machine so acquired, or to include less than all the inch-
hours in combined rating, and to impose such terms and conditions
to the granting of combined rating as in the opinion of such Board
shall be proper. Such Board in reaching its decision may take into
consideration all facts deemed by it to be pertinent, among others
the previous operating history of the machine acquired, its produc-
tive rate as compared with productive rates of machines with which
it is sought to be combined, all as in the opinion of the Board may be
necessary to prevent use of rights and privileges granted by sub-
division (f) of Paragraph 6 in manner which will, in the opinion
of the Board, work hardship on or be unfair to other members of
the industry.

11. If a machine be removed from its present location to a new lo-
cation in the United States, such removal shall not affect the rated
inch-hours otherwise applying to such machine.
12. No machine shall be included for inch-hour rating which, in
the opinion of the Board of Appeals, shall be deemed not to be in
condition for inclusion in good faith as an operative unit.
13. For the purpose of combined rating, a machine once rated shall
continue to be rated regardless of condition. The destruction, dis-
mantling, or other cause making a machine unfit for operation while
included in the combined rating of the owner thereof (not lessee)
shall not. operate to reduce the rated inch-hours to which such owner
shall otherwise be entitled.
14. No lease made on or after July 15, 1933, will be recognized or
change of rated inch-hours made on account thereof unless such
lease be for a period of not less than two years, and such lease shall
give the lessee the right to operate the paper-board machine and the
lessee has, by contract or otherwise, made provision for securing
power and other essentials necessary for operation. Leases made
prior to July 15, 1933, which shall be for a period of at least six
months, shall be recognized and the rated inch-hours of the machines
leased shall be transferred to the lessee, but in case any recognized
lease made prior to July 15, 1933. shall give the lessee the right to
renew, such lease shall not be recognized for the renewal period,
unless the lessee shall exercise all available renewal options to the
extent that the same shall exist as may be necessary to qualify such
lease, the sime as though it had been made subsequentto July 15, 1933.
In case a lease made subsequent to January 1, 1933, and prior to
July 15, 1933, shall be for less than two years, then in case a new
lease for the same machine shall be made by the same lessee, com-
mencing on termination of the existing lease, the term of the original
lease shall be counted as part of the term of the new lease for the
purposes of this paragraph. A provision in a lease granting right
to termination on termination of the Industrial Recovery Act or this
Code shall not affect the recognition of such lease.
15. No increase in rated inch-hours arising from transfers. will be
recognized prior to 7:00 a.m. of the Saturday next following sub-
mission of duly executed documents of transfer to the Chairman of
the National Paperboard Association or such other person or persons
at any time hereafter designated by the Executive Committee of the
National Paperboard Association.
16. If any producer of paper board in any three months' period,
beginning January 1, 1933, to December 31, 1933, or in any three
months' period of any calendar year thereafter, during which this
Code shall be in force, shall operate less than the industry average,
such producer shall be entitled to credit for the deficiency with re-
spect to operations in future quarters of the same year.
17. If a producer of paper board in any quarter of a calendarr year,
beginning January 1, 1933, operates in excess of the industry aver-
age, so that a tax shall be due and payable hereunder, then such tax
shall be refunded to the extent that future operations in such calen-
dar year shall be less than the industry average, so that the tax
as finally assessed shall be based upon the operations of a complete
calendar year.

18. In case any producer of paper board shall fail to comply with
the provisions of this Code with respect to the hours of labor and
wages, then such member shall pay a sum equivalent to the saving
of such member arising from noncompliance, plus fifty percent there-
of, provided that nothing herein contained is intended to preclude
further action by the industry to require compliance with the labor
provisions of this Code by application to the President.
19. Any payments due under Paragraphs 5 and 18 shall be made-
thirty days following the expiration of each quarter. The first pay-
ment due hereunder shall be November 1, 1933, or thirty days from
the date this Code is approved by the President, whichever shall be
later, based upon operations from April 1 to September 30, 1933.
The payment of any balance thereof due on account of operations
from January 1, 1933, to March 31, 1933, shall be postponed until
January 31, 1934, at which time final settlement shall be made ac-
cording to the amount due, based upon operations for the entire
calendar year 1933. The tax and payments provided to be paid
under Paragraphs 5 and 18 hereof shall be paid to the Trustees
referred to in Paragraph 21 hereof.
20. A Board to be known as Board of Appeals is hereby created.
Such Board shall consist of three persons. One member of such
Board shall be selected by the Administrator appointed by the Presi-
dent under the National Recovery Act; one member shall be selected
by the Executive Committee of tie National Paperboard Association.
The third member, who shall act as chairmann of such Board, shall
be selected by the two Board members first appointed.
Such Board shall act as a board in all matters hereunder, including
action as Trustees, and the decision of the majority shall be the
decision of the Board.
In case a member of the Board shall resign or die, his successor
shall be appointed in the same manner as herein provided for the
original appointment.
Any member of the Board may be removed without cause by the
person or persons who appointed such member.
The members of the Board as members thereof, and as Trustees,
may be paid a compensation, and such compensation shall be in such
amount as may be determined by the Executive Committee of the
National Paperboard Association.
The compensation and all expenses of the Board as a Board and
as Trustees shall be a charge upon and paid from any tax monies
collected hereunder, but in case tax funds shall be insufficient for
the purpose, such compensation and expenses shall be paid by the
National Paperboard Association.
21. In case any member of the industry shall feel that the pro-
visions of this Code will work hardship owing to peculiar conditions
affecting such member, or by reason of the development of unforeseen
conditions, such member may make application in writing to the
Board of Appeals and the Chairman of the National Paperboard
Association, setting forth the grounds of the complaint and the relief
The Board of Appeals shall thereupon appoint a time and place to
hear such application.
The Board of Appeals shall be empowered to hear such applica-
tion and, after hearing, to grant such relief to the applicant as, in

the opinion of the Board, may be just and fair; provided that the
action of the Board of Appeals in connection with labor provisions
of this Codte shall be deemed recommendations only, and such recom-
mendations shall not relieve any member from the labor provisions
of this code. except upon the approval of the President.
Notice of such hearings shall be given by the Board to the ap-
plicant and all members of the industry.
The applicant may present such evidence and facts as to it shall
seem appropriate, all as in the judgment of the Board of Appeals
are material and relevant.
The Board (if Appeals shall determine its own procedure and shall
render its decision in writing, setting forth the facts as found,
together with its conclusions.
The Chairman of the National Paperboard Association shall assist
the Board of Appeals in the conduct of the hearings and shall pre-
sent, further facts on behalf of the applicant and/or the industry
and/or any member thereof, as to the Chairman of the Association
seems appropriate, provided the same shall, in the opinion of the
Board be material and proper.
The Chairman of the National Paperboard Association may, and
upon instructions from the Board of Appeals shall, appoint one or
more members of the National Paperboard Association to rellre'ent
the industry in hearings before the Board of Appeals.
The Board shall forward to all members of the industry a sum-
mary of its decision and a copy of the findings. The complete find-
ings and decision of the Board shall be furnished to any nlmeber
upon request.
The decision of the Board of Appeal.- lallal be hinling upon the
applicant and the industry, provided that nothing herein c. intained
shall preclude an applicant from thereafter making application or
such representation to the President as in the opinion of the appli-
cant is proper.
No application shall be made by any member to the President for
relief from the terms of this Code until the proceedings set forth in
this paragraph shall have been taken and complied with.
22. In case any member or members shall believe that any other
member is carrying on business unfairly, improperly, or in a manner
prejudicial to the interest of the industry, or in violation of the terms
and conditions of this Code, such member may file a complaint with
the Board of Appeals. Such complaint shall set forth the action
complained of. The Board of Appeals shall thereupon make such
investigation as in its opinion is proper, granting to the member
complained against full opportunity to submit facts and evidence in
its behalf.
If. in the opinion of such Board, the member complained of is
conducting business unfairly, improperly, or in violation of the
terms of this Code. then such Board is hereby authorized to, and
shall, make such representation to the President and request -such
relief as, in the opinion of the Board, is proper in the premises.
No member of the industry shall file a complaint or request action
by the President against any other member until the proceedings in
this paragraph set forth shall have been taken.
23. The tax and all payments provided herein to be paid (except
dues to the National Paperboard Association) shall be paid to the

persons who shall be the Board of Appeals, as Trustees, and the
members of such Board as Trustees are hereby granted power to
collect the tax and other payments provided to be paid under Sections
5 and 18 hereof, and to hold, invest, and pay the proceeds thereof
as herein provided.
Any funds coming into the hands of the Board of Appeals as
Trustees shall be invested by the Trustees in securities of the Govern-
ment of the United States and not otherwise.
The Trustees are hereby authorized to collect the income from such
funds and to expend the principal and income of such funds for:
(A) The payment of compensation of the Board of Appeals and
expenses of such Board, as a Board and as Trustees, and
(B) The purchase of paperboard producing plants and machines,
paying therefore such amount as in the opinion of the Trustees is
p roper.
The said Trustees may dismantle or scrap any paperboard ma-
chines so acquired by them, and may sell and dispose of the other
parts of any such property so acquired at such price and upon such
terms and credit as in the discretion and judgment of the Trustees
shall be proper.
The Trustees are authorized to lease paperboard-producing prop-
erties, and to pay such rental or consideration therefore as, in the
opinion of the Trustees, shall be proper, provided that no lease
shall be made which shall extend beyond the period that this Code
shall remain in force.
The purpose in granting such power to lease is to relieve the
industry of excess capacity without permanently withdrawing same
from the industry.
It is the further purpose hereof to grant to the Trustees power to
assist owners of properties through the period of the depression.
The Board, in exercising the powers herein granted to purchase
and lease, shall give recognition to geographical locations and com-
petitive conditions, and shall proceed in a manner as shall, in its
opinion, be fair, just, and equitable and to the best interest of the
industry as a whole, and in a manner which will avoid special benefit
or advantage to any member, group, or subdivision of the industry,
without regard to the source of the tax funds.
The Executive Committee of the National Paperboard Association
may appoint an Advisory Committee to cooperate with the Trustees
in the selection of properties for purchase and lease and the Board of
Appeals shall not take action until it shall have afforded full oppor-
tunity to the Advisory Committee to submit its recommendations.
The Trustees in the expenditure of said fund shall advise with the
agents of the President authorized to administer the National In-
dustrial Recovery Act, and shall not exercise any powers herein
granted in a manner which shall be contrary to any orders, regula-
tions, or directions of the President.
If, upon the termination of this Code, any paperboard-producing
plants are held by such trustees, such plants shall be disposed of by
the Trustees at such prices and upon such terms, at either public
or private sale, as in the discretion of the Trustees shall seem proper
The proceeds of such sale, together with any other funds or prop-
erty, which shall be or shall come into the hands of the Trustees

hereunder, shall be paid to the National Paperboard Association and
become a part of the general funds of such Association.
24. No member of this industry shall sell its product for more
than a fair and reasonable price.
Each member will, upon request of the Board of Appeals, submit
facts as to selling prices, together with costs and all pertinent facts
as may be necessary to permit opinion on the part of the Board of
Appeals as to the fairness and reasonableness of the prices being
Whenever, in the opinion of the Board of Appeals, any member is
charging prices which are unfair and unreasonable, the Board of
Appeals shall report all the facts and circumstances to the President.
The Board of Appeals shall file such reports and furnish such
data to the President. as shall be requested by the President.
Each member shall submit to such rules and regulations in the
premises as may be issued by the President.
25. If the tax of $5.00 per ton referred to in Paragraph 5 hereof is
found to be insufficient as a deterrent to unsound merchandi-ing and
harmful price demoralization, or if such tax is found to be so large
as to constitute a prohibition against operations in excess of industry
average, then the amount of the tax may be increased or decreased
as may be necessary to make effective the purposes hereof.
Increase in tax shall be by vote of the producers of paper board
subject to this code, who shall be a majority in numbers and volume,
but no such increase shall be effective unless the same shall be
approved by the Board of Appeals.
Decrease may be effected by either the Board of Appeals or by
vote of the producers of paper board subject to this code, who shall
be a majority in numbers and volume.
'" Volume ', for the purposes of this paragraph, shall be the total
tons produced by the paper-board producers subject to this code
during the preceding calendar year. An increase in the tax shall
not be made retroactive, but a decrease therein may be made retro-
26. Every producer of paper board shall promptly and correctly
furnish each week to the National Paperboard Association, data and
information as to its operations, together with all facts as may be
necessary hereunder. Full reports as to rated inch hours, and op-
erated inch hours of individual paper-board producers, together
with the industry average based upon the data so furnished, shall
be distributed weekly by the National Paperboard Association to
all producers of paper board. All measurements and operating
time and records shall be subject to audit by the National Paper-
board Association through auditors selected by the Executive Com-
mittee of such Association.
27. Every producer of paper board, so long as this code remains
in force, shall pay as dues to the National Paperboard Association
on account of the expenses of such Association, its pro-rata share
thereof, computed on a tonnage basis.
28. Paper board, for the purposes of this code, shall be all paper
having a thickness of 12 '1000 or more of an inch, and also paper
of a lesser thickness known as "lightweight chip", and also paper
of a lesser thickness manufactured for use as corrugating material

and or container board, and also specialties not classified as paper
according to trade custom.
29. This code shall include the producers of paper board, which
consume the board produced, either as fabricators or otherwise, and
is not limited to the producers of paper board produced to be sold
as such.
30. This code shall not apply to the employees or operations in
the fabricating of paper board, and fabricating is specifically
exempted herefrom, notwithstanding that a producer of paper board
may also be a fabricator thereof.
31. In the case of any machine, the rated inch hours of which
shall be recognized and included as a paper-board producing unit
hereunder, all of the operating time of such machine shall be in-
cluded for the purpose of determining the percentage of operations
under this code, irrespective of the Iproduct produced, provided such
adjustments, rules. (r regulations may be made in connection there-
with by the Board of Appeals as shall be equitable and proper in
the premises.
32. This code shall inure to the benefit of and be binding upon
all producers of paper board.
33. This code shall be construed according to its intent in order
that the purposes hereof may be effective and unfairness and in-
justice avoided.
34. Modifications of this code may be submitted to the President
at any time, and from time to time, upon vote of the paper-board
producers who shall be a majority iln numbers and volume subject
hereto. and l uch ni'tlitria ti(ons. when approved by the President,
shall thereupon become a part of this code.
35. Tli-s c.l ne i aN bie 'naceled1 and terminated at. any time. after
four months from the late inf tile approval hereof. upon vote of a
majority in numbers andl volume of the producers of paper board
subject. hereto, provided no suc'h cancellation .hall be effective until
notice of can;ella tiico in writing is filed with the National Recovery
Almiinistration. signed by lduily authorized representatives of the
National Paperbioard Associatiilln. together with written statement
1Iy such repre.-entatives that thei persons voting for such cancellation
repre.:ent a majority in numbersl a;nd volume of pauper-board pro-
duc'ers subject hereto. according to knowledge and information of
such representatives of the Natioial Paperboard Association, based
upon examination of the records and data of the National Paper-
board Association.
36. The President may from time to time cancel or modify this
code pursuant to the provisions of subdivision (b) of Section 10
of the National Industrial Recovery Act.
Dated July 24, 1933.




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