UNIVERSITY OF FLORIDA
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3 1262 08486 7794
Approved Code No. 149
Registry No. 299-1-16
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED JN DECEMBER 7, 1933
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1. Executive Order
2. Letter of Transmittal
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WASHINGTON : 1933
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Approved Code No. 149
CODE OF FAIR COMPETITION
MACHINED WASTE MANUFACTURING INDUSTRY
As Approved on December 7, 1933
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 Machined Waste Manufacturing In-
dustry, and hearings having been held thereon and the Adminis-
trator having rendered his report containing an analysis of the said
Code of Fair Competition, together with his recommendations and
findings with respect thereto, and the Administrator having found
that the said Code of Fair Competition complies in all respects with
the pertinent provisions of Title I of said act, and that the require-
ments of clauses (1) and (2) of subsection (a) of Section 3 of the
said Act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator, and do order that the said Code of
Fair Competition be, and it is hereby, approved.
FRANKLIN D. ROOSEVELT.
HUGH S. JOHNSON,
THE WHITE HOUSE,
December 7, 1933.
NOVEMBER 25, 1933.
The White House.
SIR: This is a report on the Hearing on the Code of Fair Competi-
tion for the Machined Waste Manufacturing Industry, held in accord-
ance with the provisions of the National Industrial Recovery Act in
the Caucus Room of the Old House Office Building, on November 6,
1933. The Code which is attached was presented by duly qualified
and authorized representatives of the Industry, complying with
statutory requirements, said to represent 60 percent in number and
85 percent in volume of the Industry.
In accordance with the customary procedure every person who had
filed a request for an appearance was freely heard in public, and all
statutory and regulatory requirements were complied with.
The Industry comprises about 40 concerns, having an investment
in 1933 of $4,500,000. rn 1928 and 1929 the Industry provided em-
ployment for 1,600 full-time workers. This figure has declined to
about 900 full and part-time workers in 1933. The aggregate an-
nual sales have fallen from 130,000,000 pounds in 1928 to an estimated
65,000,000 pounds in 1933.
The wages specified in this Code according to testimony are in
excess by more than 30% of the highest 1929 wages paid in the
South. The increase from the low of 1933 is considerably in excess
of 100% according to testimony given. While the same percentage
increase is not to be found in the other districts, the improvement
is all that could be expected in the situation.
Hours of work have been reduced from 48 and more than 50, in
some instances, to 40, and employment is thereby increased in the
PROVISIONS OF THE CODE
The Code provides for a minimum wage in the North of 321/ an
hour, and 30W an hour in the South. Hours of work are limited to
40 hours in any one week and 8 hours in any 24-hour period with
the following exceptions: maintenance employees are permitted to
work 44 hours per week; truckmen, 48 hours per week; watchmen,
56 hours per week; employees in a supervisory capacity receiving
$35.00 per week or more, and outside salesmen are not limited to
hours; employees on emergency repair work are excepted but are
to be paid time and one third for hours worked in excess of 44 hours
per week. Provision is made for the maintenance of differentials
between wages above the minimum. Operations are limited to one
shift of 40 hours.
Representation on the Code Authority is provided for all members
of the 'industry.
There are no highly restrictive provisions in the Code itself. Pro-
vision is made for recommendations by the Code Authority to the
Administrator for licensing all new installations and in other ways
to regulate the industry. No such provisions, however, will become
effective without further approval of the Administrator.
I find that:
(a) This Code complies in all respects with the pertinent provi-
sions of Title I of the National Industrial Recovery Act, including
without limitation subsection (a) of Section 7 and subsection (b)
of Section 10 thereof and further provides for the reporting of any
pertinent statistical information desired by the Administration.
(b) The Waste Manufacturers Association to be truly represen-
tative of the Machined Waste Manufacturing Industry. The By-
Laws of this Association provide no inequitable restrictions to
(c) The Code is not designed to promote monopolies or to elim-
inate or oppress small enterprises and will not operate to discrimi-
nate against them and will tend to effectuate the policy of Title I of
the National Industrial Recovery Act.
(d) The wages specified in this Code are substantially higher
than those prevailing prior to June 16, 1933.
(e) The trade practices have the support of the preponderant
majority of the industry and should increase uniformity of practice.
I recommend that the Code be approved.
HUGI S. JOHNsoN,
CODE OF FAIR COMPETITION
MACHINED WASTE MANUFACTURING INDUSTRY
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 Machined Waste Manufacturing Industry,
and, upon approval by the President, shall be the standard of fair
competition for such industry and shall be binding upon every
1. The term Industry as used herein includes the manufacture
and sale of machined wiping waste and journal-box packing, and
branches or subdivisions thereof as may from time to time be
included under the provisions of this Code.
2. The term "member of the Industry includes anyone engaged
in the Industry as above defined, either as an employer or on his own
3. The term "Association" means the Waste Manufacturers
4. The term 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
title I of said Act.
5. The term employee as used herein includes anyone engaged
in the Industry in any capacity receiving compensation for his serv-
ice, irrespective of the nature or method of payment of such
6. The term employer as used herein includes anyone by whom
any such employee is compensated or employed.
7. The term productive machinery as used herein is defined to
mean waste pullers.
1. No employee shall work or be permitted to work in excess of
forty (40) hours in any one week or eight (8) hours in any twenty-
four (24) hour period, except that:
(a) executives and employees in a managerial or supervisory ca-
pacity who receive thirty-five ($35.00) dollars or more per week
and outside salesmen are excepted from the maximum-hour pro-
visions of this Section.
(b) repair-shop crews, firemen, engineers, electricians, outside
crews, and cleaners shall be permitted to work 10% in excess of the
maximum hours specified above.
(c) truckmen shall be permitted to work forty-eight (48) hours
(d) watchmen are permitted to work not in excess of fifty-six
(56) hours per week.
(e) employees on emergency maintenance or emergency repair
wPak involving breakdowns or protection of life or property may
work in excess of the maximum hours specified above, but in any
such special case at least time and one-third shall be paid for all
overtime work. At the end of each calendar month every employer
shall report to the Code Authority, hereinafter provided for, in such
detail as may be required, the number of man-hours worked in that
month for emergency reasons and the ratio which said emergency
man-hours bear to the total number of man-hours of labor during
2_ Members of the Industry shall not operate productive machin-
ery in the Machined Waste Manufacturing Industry for more than
one shift of forty (40) hours per week.
1. No employee shall be paid at less than the rate of thirty-two
and one-half (321/,) cents per hour in the North and thirty (300)
cents per hour in the South. The South shall include the states of
Virginia, North Carolina, South Carolina, Georgia, Tennessee, Ala-
bama, Mississippi, Louisiana, Texas, and Florida. The North shall
mean the rest of the United States.
2. This Article establishes a minimum rate of pay, regardless of
whether an employee is compensated on a time-rate, piecework, or
3. The compensation for employment now in excess of the mini-
mum wages hereby provided shall not be reduced (notwithstanding
thatthe hours worked in such employment may be hereby reduced).
Wage differentials existing prior to June 16, 1933, shall be main-
tained for all employees receiving thirty-five ($35.00) dollars or
less per week.
4. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
ARTICLE V-GENERAL LABOR PROVISIONS
1. No person under 16 years of age shall be employed in this
Industry, nor anyone under 18 years of age at operations or occu-
pations hazardous in nature or detrimental to health. The Code
Authority shall submit to the Administrator within ninety (90)
days after approval a list of such occupations. In any State an
employer shall be deemed to have complied with this provision if
he shall have on file a certificate duly issued by the authority em-
powered to issue employment certificates, showing that the employees
are of the required age.
2. 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 or protection.
3. No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to retrain
from joining, organizing, or assisting a labor organization of his own
4. Employers shall comply with the maximum hours of labor, mini-
mum rates of pay, and other conditions of employment, approved, or
prescribed by the President.
5. Within each State members of the Industry shall comply with
any laws in such State imposing more stringent requirements, regu-
lating the age of employees, wages, hours of work or health,,-wel-
fare, or general working conditions than are provided in this Code.
6. Each employer shall post in conspicuous places full copies of
To further effectuate the policies of the Act, a Code Authority is
hereby constituted to cooperate with the Administrator in the
administration of this Code.
1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of five (5) individuals, or
such other number as may be approved from time to time by the
Administrator, to be selected by a fair method of election approved
by the Administrator. The President, in his discretion, may appoint
from one (1) to three (3) additional members without vote.
Each member of the industry shall have one vote in selecting the
members of the Code Authority.
(b) In order that the Code Authority shall at all times be truly
representative of the Industry and in other respects comply with the
provisions of the Act, the Administrator may provide such hearings
as he may deem proper; and thereafter if he shall find that the-Code
Authority is not truly representative or does not in other respects
comply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authority.
(c) Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority
shall (1) impose no inequitable restrictions on membership, and
(2) submit to the Administrator true copies of its articles of asso-
ciation, bylaws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem neces-
sary to effectuate the purposes of the Act.
2. The Code Authority shall have the following duties and powers
to the extent permitted by this Act. The Administrator shall have
the right to review and veto or modify any action taken by the
(a) The Code Authority may from time to time present to the
Administrator recommendations based on conditions in this Indus-
try as they may develop which will tend to effectuate the operation
of the provisions of this Code. Such recommendations when ap-
proved by the Administrator after such notice or hearing as he shall
specify shall have the same force and effect as any provision of
this Code. Such recommendations may include:
S(1) Recommendations (a) for the requirement by the Adminis-
tfator of registration by persons engaged in the Machined Waste
Manufacturing Industry of all productive machinery, (b) for the
requirement by the Administrator that prior to the installation of
additional productive machinery by persons engaged or engaging
in this Industry (except for the replacement of machinery of equal
capacity or to establish balance in existing machinery) such persons
shall secure certificates that such installation shall be consistent with
effectuating the policy of the National Industrial Recovery Act
during the period of emergency, and (c) for the granting or with-
holding by the Administrator of such certificates as so required by
(2) Recommendations for a plan to prevent demoralization in the
Industry whenever operations are below 35 percent of registered
capacity and after approval by members of the Industry representing
80 percent of the volume of production.
(b) The Code Authority shall cooperate with the Administrator
in making investigations as to the functioning and observance of
any provisions of this Code, at its own instance or on complaint by
any person, and to report the same to the Administrator.
(c) Members of the Industry shall be entitled to participate in
and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting
to and complying with the requirements of this Code and sustain-
ing their proper share of the reasonable expenses of its administra-
tion. The proper share of the expenses of administration shall be
determined by the Code Authority, on the basis of volume of busi-
ness and/or such other factors as may be deemed equitable to be
tskken into consideration.
* -(d) Members of the Industry shall file with the Code Authority,
at si.ch time and in such manner as may be prescribed, statistics cov-
ering number of employees, wage rates, employee earnings, hours of
work, production, shipments, stocks, prices, and such other data
pertinent to the effectuation of the purposes of this code as may be
required by the Administrator. Such information shall be received,
assembled, and reported to the Code Authority by a confidential
agency in no way connected with the Industry. This agency shall
disclose to the Code Authority only the general findings.
(e) In addition to the information required to be submitted to the
Code Authority, there shall be furnished to government agencies
such statistical information as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act.
(f) The Code Authority may from time to time appoint such
subcommittees or designate such agencies, and may delegate to any of
them such of its powers and duties, as it shall deem necessary or
proper in order to carry out the provisions of this Code.
(g) Any interested party shall have the right of appeal to the
Administrator, under such rules and regulations as he may pre-
scribe in respect to any rule, regulation, or other course of action
issued or taken by the Code Authority.
ARTICLE VII-TRADE PROVISIONS
1. No member of this Industry shall sell or exchange any product
of the Industry below his own cost as may be determined as-here-
after provided. When a uniform and standard system of Cost Ac-
counting, prescribed by the Code Authority, shall be approved by
the Administrator, every member of the Industry shall install a sys-
tem of accounting which conforms to the principles of and is at least
as detailed as such system. The Code Authority shall, subject to
the approval of the Administrator, determine the cost factors to be
included in such system, and the manner of calculating raw material
2. Any violation of the unfair trade practices set forth in Sched-
ule A attached hereto, or hereafter approved by the President, shall
constitute a violation of this Code.
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of subsection (b) of Section 10 of the National Industrial Re-
covery Act, from time to time to cancel or modify any order, ap-
proval, license, rule, or regulation issued under Title I of said Act
and specifically, but without limitation, to the right of the Presi-
dent to cancel or modify his approval of this Code or any conditions
imposed by him upon his approval thereof.
2. After due notice and hearing, this Code, except as to provisions
required by the Act, may be modified on the basis of experience or
changes in circumstances; such modifications shall be based on the
recommendation of the Code Authority or of any interested party
or group or on the Administrator's own initiative and shall become
effective on approval of the President.
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrim-
inate against small enterprises.
ARTICLE X-EFFECTIVE DATE
This Code shall become effective on the tenth day after its approval
by the President.
Approved Code No. 149.
Registry No. 299-1-16
1. Open Price Providsons.-Members of this Industry shall file with the Code Authority
a schedule of prices, terms, discounts, and conditions of sale for the products of the
Industry within twenty (20) days after the effective date of the Code. Such price lists
may be revised only upon 5 days' notice to the Code Authority. The Code Authority shall
immediately send copies of all price lists so filed to all members of the Industry.
Members of the Industry shall not sell their products at other prices or on other terms
or conditions than set forth in their own price list. When any member of the Industry
revises his price list, any other member of the Industry may revise his price list accord-
ingi y, become effective on the same date as the revised price list first filed.
wlete merchandise and merchandise that must be sold in emergencies may be sold
at other than the price list of the member of the Industry, with the approval of the Code
The Code Authority shall have the power to suspend the operation of the provisions
of this Section.
2. Terms of Sale.-The terms of sale shall be: To railroads and the Government-1%
10 days, net 30 days;
To other customers-not more than 2% 25th proximo.
3. Commissions.-On shipments made direct to consumers, commissions may be paid to
those whose business is not regularly that of selling wiping waste and 'or journal-box pack-
ing at the rate of not more than 4%, and at the rate of 5% to bona fide salesmen of
such products. On shipments to be carried in stock by representatives, the commission
may ieb %~ per pound based on listed selling prices.
4. Price Changes.-Members of the Industry shall not make guarantees against decline
5.' Qu tations.-Protectlon on quotations shall be limited to forty-eight (48) hours
front .the receipt thereof, or from closing date of the inquiry covered. All quotations shall
bear'the following notation:
The price quoted herein is subject to acceptance on (date) ; otherwise quotation Is
subject to market change and our acceptance."
6. Contracts.-(a) Shipment on contracts shall be released within the contract period
and in no case shall members of the Industry make shipment on any contract after
thirty (30) days from its expiration date.
(b) Contracts shall be either for the entire requirements of the customer for the con-
tract period, or for a specified poundage, with a tolerance of not over 15%.
7. Unfair Trade Practices.-The following unfair trade practices are prohibited.
(a) The secret payment or allowance of rebates, refunds, commissions, credits, or
unearned discounts, whether in the form of money or otherwise, or the secret extension
to certain purchasers of special services or privileges not extended to all purchasers on
like terms and conditions.
(b) Entering into any contract for furnishing any products of the Industry contingent
upon the sale or purchase of any other thing, the performance of any other service or
any other contingency not appearing in the contract.
(c) Obtaining or soliciting orders from railroads directly or indirectly on the basis of
traffic considerations, by means of practices which have been condemned by the Federal
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