UNIVERSITY OF FLORIDA
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3 1262 08486 7885
Registry No. 1040-04
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
AS SUBMITTED ON AUGUST 30, 1933
-WE DO OItR PART
The Code for the Stoneware 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 sale by the Superinteadeut of Documents, Washington, D.C. Price 5 cents
NATIONAL STONEWARE MANUFACTURERS ASSOCIATION
GENERAL CODE OF FAIR COMPETITION FOR THE STONE-
The purposes for which this National Code of Fair Competition is
established to control the Stoneware Industry are as follows:
(a) To make effective within the Stoneware Industry the terms,
provisions, and policy of the National Industrial Recovery Act.
(b) To regulate the Industry in its own and the public interest, so
as adequately to protect consumers, competitors, and employees.
(c) To adopt methods to aid in rebuilding the Industry on a high
plane of honesty and careful business planning, to increase capacity to
give employment, and to raise the living standards of the employees.
(d) To promote the fullest. utilization of the productive capacity of
(e) To provide through the trade associations of the Industry the
machinery necessary for the great cooperative movement throughout
the industry in order to obtain a wide reemployment, to shorten the
working hours, to pay a fair wage and to prevent unfair competition
and disastrous overproduction.
When used in this National Code, the following terms shall, unless
the context otherwise indicates, have the following respective
"Stoneware Industry" as used herein is defined to include any
manufacturer and/or jobber and/or distributor of stoneware
"Stoneware" means stoneware such as jugs, jars, crocks, food
containers and stoneware specialities and stoneware kindred products.
"Plant" means any establishment engaged in the manufacture of
"Person" means any individual, partnership, association, trust, or
corporation engaged in the manufacture of stoneware.
"Employee" means any person employed in the Industry.
"Associations" means the divisional associations, or informal
organizations or divisions set up for the purpose of making effective
the terms, provisions, and policy of the National Industrial Recovery
"Alember" means a member of one or more of such divisional
associations or divisions.
"President" means the President of the United States.
ARTICLE III-PARTICIPATION AND DIVISIONS
Participation in this Code, and any subsequent revision of or addi-
tion to the Code, shall be extended to any person in the United States
engaged in the manufacture of Stoneware. All persons hereafter
entering the business of manufacturing stoneware shall be admitted
to full participation in the associations or divisions on equal terms
with the existing members thereof.
The Stoneware Industry naturally falls into geographical divisions,
and, for the purpose of the administration of this Code, these
geographical divisions are recognized as separate entities and charged
with the responsibility of setting up and operating their own adminis-
trative agencies under this Code. Each such district shall be inde-
pendent and self-governing in respect of all conditions and problems
relating exclusively to said district. Proposals in respect of matters
affecting more than one district may be initiated by any district, and
shall be submitted for consideration to the National Executive Com-
mittee of the Stoneware Industry, hereinafter described, and its
determination shall be binding upon said district and all other dis-
tricts affected thereby.
Districts are hereby established as follows:
Other districts of manufacturers or producers of stoneware may be
established upon application of any such group, subject to the
approval of the National Executive Committee hereinafter described,
such districts to have representation on the National Executive Com-
mittee of the Stoneware Industry.
Each of the foregoing districts, and any others which may subse-
quently be formed within the Stoneware Industry, shall set up a
trade association or a division committee for the purpose of adminis-
tering the provisions of the Code, to secure adherence thereto, to
hear and adjust complaints, to consider proposals for amendments
thereof and acceptance thereto, and otherwise carry out within the
district the purpose of the National Industrial Recovery Act as set
forth in this Code.
Inasmuch as they contain in their membership an overwhelming
preponderance of the manufacturing firms in their respective districts,
the following associations are hereby officially recognized as repre-
sentatives of their divisions.
Eastern Stoneware Manufacturers Association, for the Eastern
Western Stoneware Manufacturers Association, for the Middle-
Southern Stoneware Manufacturers Association, for the Southern
Pacific Coast Stoneware Manufacturers Association, for the Pacific
Each division shall prepare for submission to the President, as
part of this General Code of Fair Competition of the Stoneware
Industry, a Divisional Code of Fair Labor. Each Divisional Code
of Fair Labor shall contain the following provisions, prescribed by
the National Industrial Recovery Act, assuring to employees:
(1) 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;
(2) that no employee and no one seeking employment shall be
required as a condition of employment to join any company union
or any other union or to refrain from joining, organizing, or assisting
a labor organization of his own choosing; and
(3) 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.
It is understood that the plants of the Industry are open to capable
workmen without regard to their membership or nonmembership in
any organization, and nothing in this Code is to prevent the selection,
advancement, retention, and/or discharge of employees on the basis
of their individual merit.
ARTICLE IV-INDUSTRY REGULATIONS
Marketing Code.-The National Executive Committee may estab-
lish a Marketing Code with provisions with respect to:
(a) Simplification and standardization of products.
(b) Cooperative advertising for the industry.
(c) Collection and interchange of credit information.
(d) Cooperative administration of insolvent debtors.
(e) Dropped lines or surplus stocks, sometimes designated as "close-
outs" or inventories which must be converted into cash to meet imme-
diate needs, may be sold at such prices as are necessary to move the
merchandise into buyers' hands. However, all such stocks must first
be reported to the Executive Committee of the District and be dis-
posed of subject to the approval of that Committee; this to apply on
all stoneware products marketed on the gallonage basis.
(f) And/or other aspects of marketing.
ARTICLE V-TRADE PRACTICE RULES
The following are unfair trade practices which are condemned"
These, together with other practices which may be subsequently
declared unfair by the National Executive Committee shall be deemed
to be unfair methods of competition and the employment of such
practices shall be considered as a violation of this Code:
1. To sell any product of this industry below cost, such cost being
determined by an approved method of cost finding in accordance with
the regulations issued from time to time by the National Executive
Committee, constitutes an unfair method of competition. This
method shall include every element of cost entering into the manu-
facture, sale, and delivery, whether by rail, truck, or otherwise, of
the industry products and shall be based upon the principles of
accounting and cost finding adopted by the National Executive Com-
mittee for the industry.
2. Violations of sections herein having to do with maximum hours
and minimum rates of pay or any other terms relating to employees
as adopted by this industry, whether applying to unskilled labor or
otherwise, constitutes an unfair method of competition.
3. To withhold from or insert in an invoice statements which make
such invoice a false record wholly or in part of the transaction rep-
resented on the face thereof constitutes an unfair method of compe-
4. The giving to any purchaser of industry products any special or
discriminatory prices, terms, privileges, or any rebates or allowances
in any manner whatsoever contrary to the agreed terms and condi-
tions of the industry or not as granted to all purchasers alike, con-
stitutes an unfair method of competition.
5. Interference or attempting to interfere in any manner whatever
with an existing contract between a member of this industry and a
purchaser constitutes an unlawful method of competition.
6. The securing or attempting to secure orders or business by giving
or the offering of gifts, whether of money or anything of value, to
customers and employees or anyone acting in their behalf, constitutes.
an unfair method of competition.
7. The making or permitting or causing to be made of any state-
ment, oral or written, that reflects falsely on a competitor or his
business constitutes an unfair method of competition.
8. The enticing or attempting to entice employees of a competitor
constitutes an unfair method of competition.
9. The reproduction or copying without the written consent of the
originator of an original design, the same having been filed with the
Executive Committee or the principal office of the industry, consti-
tutes an unfair method of competition. Protection of said original
design shall be limited to three years from the date of the first sale
of said original design.
10. Sales terms shall be 1% 15 days, 30 days net, additional 30
days for shipments west of the Rocky Mountains and the Dominion
11. To sell any of the products of this industry on a so-called con-
signment basis constitutes an unfair method of competition.
12. To sell or offer to sell industry products on a basis of com-
bination deals as defined by the Executive Committee constitutes an
unfair method of competition.
13. To violate the requirements or regulations of the Credit Bu-
reau established by the Executive Committee constitutes an unfair
method of competition.
14. The books, records, and factories of all members of this indus-
try shall be open during normal business hours for inspection without
notice by the duly accredited representatives of the Executive
15. Selling second-quality ware to the trade for resale below the
price of first-quality ware constitutes an unfair method of competition.
16. The National Executive Committee of the industry shall have
the power from time to time to interpret, and construe the provisions
of this Code, including, but without any limitation of the foregoing,
the power to define the meaning thereof. Any interpretation or
construction placed upon the Code by said National Executive
Committee shall be final and conclusive.
ARTICLE VI-ADM INISTRATION
1. DISTRICT EXECUTIVE COMMITTEE
Representation.-There shall be a District Executive Committee of
the Stoneware industry for each district to consist of 5 members
selected by the representatives of the industry located within said
Powers.-The District. Executive Committee shall be the general
planning and coordinating agency for the industry within the Dis-
trict. Its members selected by the established districts shall be
empowered by the said Districts to act for them conclusively in
respect to all matters before the Committee for consideration and
within its jurisdiction. The Committee shall have powers and duties
as provided herein, and in addition thereto shall:
(a) From time to time require such reports from the member com-
panies in each district as in its judgment may be necessary to advise
it adequately of the administration and enforcement of the provisions
of the Code;
(b) Upon complaint of interested parties, or upon its own initia-
tive, make such inquiry and investigation into the operation of the
Code as may be necessary; and
(c) Make such rules and regulations for the administration and
enforcement of this Code as may be deemed advisable.
(d) The Committee may delegate any of its authority to the Na-
tional Executive Committee hereinafter provided and may designate
such agents as it shall determine.
2. NATIONAL EXECUTIVE COMMITTEE
Representation.-Each District Executive Cdmmittee shall appoint
from its own membership to represent its district on the National
Eastern District ------------------------------------------ Two members
Middle Western District----------------------------------- One member
Southern District ----------------------------------------- One member
Pacific District ------------------------------------ One member
And such other representatives as the N.R.A. may designate.
Powers.-The National Executive Committee shall exercise such
authority as may be delegated to it by the District Executive Com-
All communications and conferences of the stoneware industry
with the President, or with his agents, concerning the approval or
amendment of this Code or any of its provisions, or any matters relat-
ing thereto, shall be through the said National Executive Committee.
| The National Executive Comunittee shall serve as an executive
agency for the District Executive Committees of the stoneware
S industry, and shall be charged with the enforcement of the provisions
S of this Code and with the duties, through agents or otherwise, of
S hearing and adjusting complaints, considering proposals for amend-
ments and making recommendations thereon, approving recommenda-
pI tions for exceptions to the provisions of this_Code, and otherwise-
administering its provisions.
Any adherent to the provisions of this Code or subject to its terms
shall have the right to appeal to the National Executive Committee
from the decisions of any District Executive Committee and its
decision shall be final and binding except for the right of final appeal
to the N.R.A.
The function of this Committee shall be general planning and co-
ordinating for the Stoneware industry, and the co-operation with
similar boards of other industries to the end of effecting a balanced
The cost of the supervision needed to secure proper observance of
this Code and any additions thereto, compilation of statistical data
and such other activities as may be necessary shall be apportioned
pro rata so far as practicable to all persons in the industry whether
or not they are members of the National Stoneware Manufacturers
Prior to the installation of additional productive machinery by
members of this industry (except for replacement that will not increase
productive capacity), or prior to the purchase and installation of
productive machinery by persons not presently engaged in this
industry, such members or persons shall be required to secure from
the National Executive Committee certificates that such purchase or
installation is consistent with effectuating the policy of the N.I.R.A.
during the emergency period stated therein.
No provision of this Code shall be interpreted or applied in such a
manner as to:
(a) Promote monopolies,
(b) Permit or encourage unfair competition,
(c) Eliminate or oppress small enterprises, or
(d) Discriminate against small enterprises.
This Code or any of its provisions may be cancelled or modified and
any approved rule issued thereunder shall be ineffective to the extent
necessary to conform to any action by the President under section
10 (b) of the National Industrial Recovery Act.
If any provision of this National Code is declared invalid or unen-
forceable, the remaining provisions shall nevertheless continue in full
force and effect the same as if they had been separately presented for
approval and approved by the President.
Amendments to this Code may be proposed by an established dis-
trict to the National Executive Committee or may be initiated by it,
and when approved by the President shall be effective.
Violation of any producer of stoneware industry products of any
provisions of this Code, or any approved rule issued thereunder, is an
unfair method of competition.
It shall be the duty of the National Executive Committee to submit
the General Industry Code and the Divisional Codes to the President,
to report back to the associations or divisions the modifications or
changes prescribed by the President, to act as intermediary between
the President and the Industry and to gather such industry statistics
and other types of information as may be required for the adminis-
tration of this Code.
Nothing in this Code, or in the Divisional Codes already prepared or
hereafter to be prepared, shall be construed as forming a partnership
between or among any of the individuals, firms or corporations of the
industry, or as a waiver of or to impair any of the constitutional
'rights of the participants in this Code or of the Divisional Codes.
This Code shall be in effect beginning ten days after its approval by
the President and remain in effect, subject to any subsequent changes
or amendments for a period of two years from the date of enactment
of the Industrial Recovery Act, if not rendered void in the meantime
by a proclamation of the President or a joint resolution of Congress as
provided in the Act or by cancellation by notice in writing to the
President or his agents by the signatories to this Code in accordance
with a reservation which is hereby made by each member of the
National Stoneware Manufacturers Association.