UNIVERSITY OF FLORIDA
3 1262 08486 7547
Registry No. 1040A-01
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON OCTOBER 23, 1933
1. Executive Order
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
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CODE OF FAIR COMPETITION FOR THE PLUMBAGO CRUCIBLE INDUSTRY
An application having been duly made, pursuant to and in full
compliance with the 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 Plumbago Crucible Industry, and hear-
ings having been held thereon and the Administrator having ren-
dered 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 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, and
findings of the Administrator and do order that the said Code of
Fair Competition be and is hereby approved.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
October 23, 1933.
HUGH S. JOHNSON,
OCTOBER 12, 1933.
The White House.
SIR: This is a report of the hearing on the Code of Fair Competi-
tion for the Plumbago Crucible Industry in the United States, con-
ducted in Washington on October 4 1933, in accordance with the
provisions of the National Industrial Recovery Act.
PROVISIONS FOB HOURS AND WAGES
This Code limits the hours of work for employees to 40 a week,
except as follows:
When demand places an unusual burden upon production em-
ployees may work 48 hours a week during one week in each month
and will be paid time and one half for overtime in excess of 40 hours
weekly. Kiln burners on continuous-process operations who have
previously been employed up to 72 hours per week are now limited
to 48 hours a week. This work is not laborious and is in the nature
of a specialized or technical watchman's duties. The step down to
48 hours is a marked advance over the longer week. Usually two
men only are needed for this work in each plant. Care and mainte-
nance workers, stock and shipping clerks are given a 10 percent
tolerance over the 40-hour week. Emergency maintenance and re-
pair workers may exceed 40 hours, receiving the time and a half over-
The minimum wage provided is 40 cents to all employees except
those physically handicapped.
Employees engaged in accounting, clerical, sales, and service work
will receive not less than $15.00 per week. Office boys and girls are
to be paid not less than 80 percent of this latter figure.
The minimum age of factory employees will be 18 years, and of
other employees, 16 years.
ECONOMIC EFFECT OF CODE
This Industry is contributing to reemployment by putting back
to work approximately 28 percent of those employed on February
16, 1932. This will be accomplished through the reduction of nor-
mal hours from 48 to 40. While this is comparatively a small In-
dustry, a large percentage of skilled workmen are required.
The minimum hourly rate for employees was 30 cents prior to
adjustments made to conform with the spirit of the National Re-
covery Act. The increase in minimum hourly rates to 40 cents, and
adjustments in wages to those in higher brackets, together with the
new employees added, will represent an increase of over 30 percent
in weekly poy roll, or approximately $60,000 yearly.
One provision under Trade Practices is unusual:
Article VII, Section II, adherence to standards, eliminates the sale
of second quality crucibles. This provision prevents the danger to
operatives which might occur if inferior quality products of the In-
dustry were distributed and used. Safety of performance being a
first consideration, high quality becomes essential. The crucibles,
accessories and refractories containing plumbago or graphite, are
sold for use in melting metals in the ferrous and nonferrous fields.
Sales of the Industry during the first six months of this year were
about a third the rate of those in 1929, which follows the trend of
other capital goods distribution. Then, too, although the products
are essential in production of many highest quality metals, they
compete in some markets with electric furnaces. Only by increasing
business, which will depend largely upon activity in the metal in-
dustry where these products are used, can this Industry put a large
percentage of employees back to work. In arriving at the terms ex-
pressed in the Code, it has shown its cooperation in complying with
the spirit of the Act.
The Administrator finds that:
(a) The Code as recommended complies in all respects with the
pertinent provisions of Title I of the Act, including, without limi-
tation, subsection (a) of Section 7 and subsection (b) of Section 10
thereof; and that
(b) The applicant group imposes no inequitable restrictions on
admission to membership therein and is truly representative of the
Plumbago Crucible Industry.
(c) The Code as recommended is not designed to promote monop-
olies or to eliminate or oppress small enterprises and will not
operate to discriminate against them and will tend to effectuate the
policy of Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be immediately
HUGH S. JOHNSON,
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CODE OF FAIR COMPETITION FOR THE PLUMBAGO
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are submitted as a Code of
Fair Competition for the Plumbago Crucible Industry, and upon
approval by the President, shall be the standard of fair competition
for this industry.
The term Plumbago Crucible Industry as used herein is defined
to mean the manufacture for sale of crucibles, retorts, saggers, covers,
stoppers, lids, stirring rods, brazing boxes and similar refractory
products, all of which contain flake plumbago or graphite, irrespec-
tive of the amount of flake plumage or graphite contained therein.
The term employee as used herein includes any person engaged
in any phase of the industry in any capacity in the nature of
employee irrespective of the method of payment of his compensation.
The term "employer as used herein includes anyone for whose
benefit such an employee is so engaged.
The term "member of the industry" includes any manufacturer
who shall be subject to this Code.
The term member of the code includes any member of the
industry who shall expressly signify assent to this Code.
The terms President ', "Act", and "Administrator" as used
herein shall mean respectively the President of the United States
the National Industrial Recovery Act, and the Administrator of said
Effective date as used herein means the first Monday after this
Code shall have been approved by the President of the United
1. On and after the effective date no employee shall work or be
permitted to work in excess of 40 hours in any one week, with the
(a) Kiln burners shall be permitted to work not to exceed 48
hours in any one week, and
(b) There shall be a tolerance of ten percent (10%) over the
maximum of 40 hours worked in any one week for employees en-
gaged in the care and maintenance of plant and machinery, and for
stock and shipping clerks.
(c) During any period in which a concentrated demand upon the
Industry shall place an unusual and temporary burden for produc-
tion upon its facilities, employees may be permitted to work not
more than 48 hours per week in not more than one week of any one
month's period; provided, however, that in such special cases time
and one half shall be paid for hours worked in excess of eight hours
2. These limitations as to hours of labor shall not apply to persons
employed in a supervisory capacity receiving more than $35.00 per
week, nor to outside salesmen, field-service men, and watchmen; pro-
vided, however, that watchmen shall have one day of rest in seven.
3. The maximum hours fixed in this Article III shall not apply
to employees on emergency maintenance and repair work or to very
special cases where restriction of hours of highly skilled workers
would unavoidably reduce or delay production, but in any such spe-
cial case time and one half shall be paid for hours worked in excess
of 8 hours per day or 40 hours per week, and provided that not more
than seven and one half (7/2) percent of the total pay roll for skilled
employees in any one week period shall be employed in excess of the
maximrun of 40 hours per week on such special cases.
1. On and after the effective date the minimum wage that shall
be paid to any employee by any employer in the Plumbago Crucible
Industry shall be forty (40) cents per hour, except as provided in
Section 5 of this Article IV. Where earnings of employees on
piece-work rates are under the minimum wage required by this
section 1 of Article IV, such rates shall be so adjusted as to conform
with aforesaid minimum wage.
2. To assure employment to workers who are physically handi-
capped and to avoid their becoming a burden to the state, such
employees are exempted from the provisions of this Article IV, pro-
vided however, that such employees shall not exceed in number
five (5) percent of the total number of workers employed by a
member of the industry.
3. Each employer shall report to the Administrator through the
Supervisory Agency, if and when required, the action taken by such
employer in adjusting the hourly wage rates for all employees re-
ceiving more than the minimum rates provided in Section 1 of this
Article IV, excepting those engaged in a supervisory capacity re-
ceiving more than $35.00 per week.
4. In determining his classification under this Coder each em-
ployer shall be entitled to claim the benefit of the classification of
occupations existing on June 16, 1933.
5. On and after the effective date all accounting, clerical, sales
and service employees shall be paid at a rate of not less than $15.00
per week, provided, however, that office boys or girls may be paid
not less than 80 percent of such minimum wage, but the total amount
paid to such office boys or girls at such reduced rate shall not ex-
ceed in any calendar month 7 percent of the total amount paid by
such employer to all employees covered by the provisions of this
6. Every employer shall post in conspicuous places in his plant
a full copy of this Code.
ARTICLE V--CiHt LABOR
No person under eighteen (18) years of age shall be employed o4
manufacturing processes in the industry and no person under sixB
teen (16) years of age shall be employed as a messenger or in office
or other work.
1. To further effectuate the policies of the Act, a Supervisory,
Agency is hereby set up to cooperate with the Administrator in the
administration of this Code.
2. The Supervisory Agency shall consist of five (5) individuals,
or such other number as may be approved from time to time by
the Administrator, to be selected as hereinafter set forth. The
Administrator, in his discretion, may appoint not more than three
(3) additional members (who shall be without vote), to represent
the Administrator or such groups or interests as may be agreed upon.
3. The Supervisory Agency shall be elected at a meeting of the
members of the industry called immediately after the approval by
the President of this Code and held immediately prior to the effective
date thereof. The meeting shall be called by the Crucible Manufac-
turers Association and notice thereof shall be sent by telegram or
registered mail a reasonable time in advance of the meeting to all
known members of the industry. The notice shall specifically state
that voting at the meeting may be in person or by proxy. The mem-
bers of the Supervisory Agency shall be elected by a majority vote
of the employers present, in person or by proxy as such, each
employer to have one vote.
4. Vacancies on the Supervisory Agency caused by death or resig-
nation or because a member has ceased to be connected with the
Industry, shall be filled in the same manner indicated in Section 3 of
this Article VI and such meeting or meetings called for the purpose
shall be called and notices sent out in exactly the same manner as
when electing the members of the Supervisory Agency in the first
5. With a view to keeping the President and the Administrator
informed as to the observance or nonobservance of this Code, and as
to whether the Plumbago Crucible Industry is taking appropriate
steps to effectuate in all respects the declared policy of the National
Industrial Recovery Act, each member of the industry shall prepare
and file with such person or organization as the Supervisory Agency
may designate, if and whenever required by the Administrator, an
earnings statement and balance sheet, statistics of plant capacity,
volume of production, volume of sales in units and dollars, orders
received, unfilled orders stocks on hand, inventory, both raw and
finished, number of employees, wage rates, employee earnings, hours
i of work, and such other data or information as the Administrator
may from time to time require.
6. In addition to the information required to be submitted to the
Supervisory Agency, there shall be furnished to government agencies
such statistical information as the Administrator may deem neces-
sary for the purpose recited in Section 8 (a) of the National In-
dustrial Recovery Act.
)I. +:i .
7. Except as otherwise provided in the National Industrial Recov-
ery Act, all statistics, data, and information filed in accordance with
the provisions of Section 5 of this Article VI shall be confidential,
and the statistics, data, and information of one member of the indus-
try shall not be revealed to any other member. For the purpose of
facilitating the administration and enforcement of the provisions of
this Code, the Supervisory Agency, by their duly authorized repre-
sentatives (who shall not be in the employ of any employer affected
by this Code), and subject to the approval of the Administrator,
shall have access to any and all statistics, data, and information that
may be furnished in accordance with the provisions of this Code.
Members of the industry shall be entitled to participate in and
share the benefits of the activities of the Supervisory Agency and to
participate in the selection of the members thereof by assenting to
and complying with the requirements of this Code and sustaining
their reasonable share of the expense of its administration. The rea-
sonable share of the expenses of administration shall be determined
by the Supervisory Agency, subject to review by the Administrator,
on the basis of volume of business and/or such other factors as may
be deemed equitable to be taken into consideration.
ARTICLE VIII-TRADE PRACTICES
1. Within ten days after the effective date each member of the
industry shall file with every other member, through the Super-
visory Agency, a complete list of its then existing crucible prices
delivery points, terms, conditions of sale, and trade discounts, and
shall file in like manner all changes therein as and when made.
2. Credits.-Each member of the Industry shall exercise his own
free and independent judgment with respect to credits he will extend
to his trade, but. it is the sense of the industry that a liberal and fair
credit information exchange shall be the policy in order to prevent
a customer of the industry from overextending his credit with the
3. Each of the following acts and practices is deemed to be inimi-
cal to the best interests of the Plumbago Crucible Industry, and of
the public, and each is, therefore, hereby declared to be, and to con-
stitute, an unfair method of competition, viz:-
4. Inducing Breach of Contract.-The willful interference by any-
one, by any means or device whatsoever, with any existing contract
or firm order between a seller and a purchaser of the products of
the industry as defined in Article II.
5. Secret Reba.tes.-(a) Withholding from, or inserting in an in-
voice for any products of the industry facts which make the invoice
a false record wholly or in part. of the transaction represented on
the face thereof, and 'or the payment or allowance of secret, rebates,
refunds, credits, unearned discounts, whether in the form of money
or otherwise, or the extension to certain purchasers of service or
privileges not extended to all purchasers under like terms and
(b) Shipment of any quantity of the products of the industry in
excess of that for which a proper charge is made.
(c) Unwarranted rejection allowances or shortage claims, by con-
nivance or otherwise, between seller and purchaser.
(d) Giving away any products of the industry as samples.
6. Commercial Bribery.-The paying of or promising to pay to
an employee of a customer or prospective customer a commission or
consideration of any character for. the purpose of influencing or
having influenced a sale.
7. Defamation of a Competitor.-The defamation of a competitor
in any manner, either by falsely imputing to him dishonorable con-
duct, inability to perform contracts, questionable credit standing, or
a false disparagement of the grade or quality of his goods or
8. Fraud and Misrepresentation.-(a) The making, causing or
permitting to be made or published any false or deceptive statement
by way of advertisement or otherwise concerning grade, quality,
character, nature, origin, manufacture, or preparation of any prod-
ucts of the industry.
(b) The marking or branding of any products of the industry
in a manner which tends to mislead or deceive purchasers, prospective
purchasers and/or consumers with respect to the quantity, quality
grade, or substance of the goods purchased. Quality of brands and
kinds of product shall be clearly defined and expressed by the seller.
No recognized grade, kind, or type of any products of the industry
shall be misbranded or misrepresented to include it in some other
9. Pooled or Combination Orders.-The sale of any products of
the industry to separate purchasers as a full-carload or other group
lot at a sales price which does not take into consideration any added
expense involved in such method of shipment.
10. Terms of Sales.-The failure on the part of members of the
industry or their agents or dealers to adhere strictly to published
terms of sale as filed with the Supervisory Agency.
11. Adherence to Standards.-Because of the high temperatures to
which plumbago crucibles are subjected in melting furnaces, and the
consequent danger to operatives who may be required to handle de-
fective, or so-called "Seconds or off-size crucibles (that is, those
sizes of stationary and tilting types of crucibles which have been
standardized and which do not conform in outside dimensions to the
standards approved by the American Standards Association), the
sale of these crucibles is condemned as a form of unfair competition;
provided, however, the determination of the amount of allowable
tolerances is discretionary with the Supervisory Agency, and subject
to the review of the Administrator.
12. Replacements.-The replacement of any products of the in-
dustry without charge, or the rebate of a portion of the sales price
of any such products, when defects or poor service are claimed by the
customer, unless the fault is traceable to the member of the industry
and the adjustment is reported to the Supervisory Agency at the
time it is made.
13. Test Crucib!es.-The distribution of crucibles among the trade
without charge as test crucibles for the purpose of obtaining new
accounts or customers.
14. Consign.ments.-The shipment of any products of the industry
on a consignment basis, excepting to a properly accredited agent of a
member of the industry.
15. Contacts.-Entering into contracts which do not represent
the bona-fide sale of products of the industry in stated and fixed
quantities, with a spread therefrom of not to exceed ten (10) per-
cent, and for shipment within a stated period from the date of
contract of not to exceed six (6) months.
16. Unearned Commissions.-The payment of a commisison to
an agent or dealer who is owned or controlled in whole or in part
by any buyer's organization, or to any fictitious agent or dealer
created for the purpose of passing to the consumer or to the con-
sumer's friends, all or any part of a commission.
17. Special Crucibles.-Listing orders for special crucibles of
standard types otherwise than on the basis of not less than the
nearest higher member on the adopted scale of standard sizes, by
weight comparison to the adopted scale.
18. Terms of Sale.-Selling or offering to sell on terms more lib-
eral than net 30 days, subject to a cash discount of one percent
(1%) ten days.
1. Employees shall have the right to organize and bargain collec-
tively through representatives of their own choosing, and shall be
free from 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. No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing.
3. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment ap-
proved or prescribed by the President.
4. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
visions of Subsection (b) of Section 10 of the National Industrial
Recovery Act, from time to time to cancel or modify any order,
approval, license, rule or regulation issued under Title I of 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.
5. Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act, may,
with the approval of the President, be modified or eliminated as
changes in circumstances or experience may indicate. It is contem-
plated that from time to time supplementary provisions to this Code
or additional Codes will be submitted for the approval of the Presi-
dent to prevent unfair competition in price and other unfair and
destructive competitive practices and to effectuate the other pur-
poses and policies of Title I of the National Industrial Recovery
Act consistent with the provisions thereof.
6. Within each state this Code shall not supersede any laws of
such state imposing more stringent requirements on employers regu-
lating the age of employees, wages, hours of work, or health, fire, or
general working conditions than under this Code.
ARTICLE X-SEGREGATION OF INDUSTRY
If any employer of labor also employs labor in any other industry,
the provisions of this Code shall apply to and affect only that part
of his business which is included in this Industry.
ARTICLE XI-PREVENTION OF MONOPOLIES
No provision in this Code shall be interpreted or applied in such
a manner as to:
I Promote monopolies,
2 Permit or encourage unfair competition,
Eliminate or oppress small enterprises, or
(4) Discriminate against small enterprises.
ARTICLE XII-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made impossible of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases should be delayed and that, when made, the same should, so
far as reasonably possible, be limited to actual increases in the
ARTICLE XIII-TERM AND TERMINATION OF CODE
After its effective date this Code shall continue in effect, subject
to amendment or modification as herein provided until terminated