NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON MARCH 22, 1934
WE 00 OUR PART
GOVERNMENT PRINTING 4
S r slde by the Superintendent of Documents, Washington, D.C. - Price 5 cents
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UNIV. OF FL LIB.
Approved Code No. 354
Registry No. 1109-1-01
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Approved Code No. 354
CODE OF FAIR COMPETITION
SMALL ARMS AND AMMUNITION MANUFACTURING
As Approved on March 22, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE SMALL ARMS
AND AMMUNITION MANUFACTURING 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 approval of a Code of
Fair Competition. for the Small Arms and Ammunition Manufac-
turing Industry, and hearings having been duly held thereon and the
annexed report on said Code, containing findings with respect thereto,
having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved; provided, however,
that (1) the provisions of Article II, Section 1, dealing with working
hours be amended by inserting after the word "than" in the second
line the words "eight (8) hours per day or", by deleting the period
in the fifth line and inserting the words "; provided further that no
employee shall work in excess of nine (9) hours a day or six days a
week except as hereinafter provided"; (2) the provisions of Article
II, Section 1, Subsection (c) dealing with employees working addi-
tional hours be amended by deleting the period and inserting the
words ", and provided further, that such hours shall not be availed
of in more than fifteen (15) weeks in any year, nor more than forty-
eight (48) hours in any week."; (3) the provisions of Article II, Section
2, Subsection 2 dealing with minimum hourly rates be amended by
deleting the remainder of the Section after the word "females" in
the fifth line and inserting a period; (4) the provisions of Article VII,
Section 1, Subsection b, paragraph 1, dealing with resale price
schedules be amended by deleting the words "resale price schedules",
in the fourth line, by deleting the words "or resale" in the sixth and
seventh lines, by deleting the remainder of the paragraph after the
words "this Industry" in the seventh line; (5) the provisions of
Article VII, Section 1, Subsection (b), paragraph 2, dealing with
distribution of price schedules be amended by deleting the period
at the end of the Section and inserting the words ", provided that the
respective schedules of prices for each class of trade shall be available
at all reasonable times to the bona-fide members of each class of trade
served by the Industry; provided further, however, that consumers'
prices shall be open to the public."; (6) the provisions of Article VII,
Section 1, Subsection b, paragraph 5, dealing with resale price
maintenance, be amended by deleting this entire section and inserting
the following words "The Industry shall study and report to the
Administrator recommendations in regard to resale price mainte-
nance"; (7) Article XVI, dealing with waiving of constitutional
rights, be deleted from the Code; (8) Article XVIII, dealing with
consent by the members to modification, be deleted from the Code.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
W. A. HARRIMAN,
Alarch 22, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Code of Fair Competition for the Small
Arms and Ammunition Manufacturing Industry, and on the hearing
conducted thereon in Washington, D. C., September 27, 1933, in
accordance with the provisions of the National Industrial Recovery
PROVISIONS AS TO WAGES AND HOURS
This Code establishes a forty (40) hour week with permission to
increase this to forty eight (48) hours per week for not more than
twelve (12) weeks in any one (1) year. Employees in an adminis-
trative or an executive capacity, supervisors, planners, and technical
research engineers, receiving not less than $35 per week, and outside
salesmen are excepted from the foregoing provision. Also the above
minima do not apply in the case of emergencies involving possible
loss of life or property. Repair men, shipping and delivery crews,
and cleaners are also excepted, but it is provided that they may not
work more than 10% in excess of the forty (40) hour or forty eight
(48) hour maximum. Watchmen may work fifty six (56) hours per
week, but not more than six (6) days in any one (1) week.
Any employer may request an employee to work additional hours
beyond those specified above, providing such additional hours shall
be paid for at the rate of time and one-half.
Minimum wages for accounting, clerical, office, service, or sales
employees are fixed in accordance with the President's Reemploy-
ment Agreement which provides a sliding scale of from fifteen dollars
($15) per week to fourteen dollars ($14) per week, according to popu-
lation. For all other employees, a minimum wage of forty cents
(40t) per hour is established for males and thirty two and one-half
cents (32;'0) per hour for females, provided, however, that, in case
the rate per hour for any female employee was, on July 15, 1929, less
than the rate above specified for the same class of labor, the mini-
mum rate paid on July 15, 1929, may be paid, provided further that
in no event it be less than thirty cents (300) per hour. Beginners
without experience may be employed for a period not to exceed sixty
(60) days, at a rate not less than eighty per cent (80%) of the standard
minimum wage, provided the total number of such beginners shall
not exceed five per cent (5%) of the total number employed by any
employer in any calendar month.
The employment of any person under 16 years of age is prohibited,
with a further provision that no person under 18 years of age may be
employed in any hazardous occupation.
This Industry consists of companies which manufacture small
arms and ammunition therefore, components thereof except propellent
powder, and clay targets and traps. Some companies manufacture
small arms only and some ammunition only. Others manufacture
small arms and ammunition and clay targets and traps, and still
others manufacture only clay targets or clay targets and traps.
There are approximately 25 manufacturers in the Industry, each
of whom had an opportunity for active participation in the prepara-
tion of the Code, and it is interesting to note that those who did
participate therein represented 100% in numbers and volume of those
engaged in the manufacture of both small arms and ammunition and
more than 90% of those engaged in the manufacture of small arms.
As there has been no trade association covering the entire Small
Arms and Ammunition Industry, statistical information is quite
The following figures illustrate the shrinkage which has taken place
in the past five years:
Year Net Sales
1928----...---------------------- ------- ------------ $48,127,329 $50,218, 850
1933 (Estimate)..----------.--------------- ---------------------. 40, 221, 537 20,000, 000
As a matter of national preparedness for defense, it is vitally impor-
tant that this Industry should be maintained in a sound and stable
condition; to enable it to function promptly and effectively in sup-
port of the Government it is essential that its trained personnel
be kept intact. These are the workers who after long periods of
training have acquired the skill and experience necessary in directing
operations in an Industry requiring a very high degree of mechanical
and professional skill.
To insure retention of this trained personnel the Industry is obliged
to conduct its manufacturing operations so as to secure the greatest
possible volume, and this makes it necessary to meet peak demands.
Its inability to control these peak demands is due to the fact that its
product is distributed largely to the consumer during the latter part
of the year. The volume of this distribution is affected by various
factors which cannot be foreseen, among which may be mentioned:
sudden changes in state and federal regulations regarding open
seasons, purchasing power of the farmer and conditions generally
It has been customary for the Industry to operate on a fifty five
(55) hour weekly basis during peak periods. Under the President's
Reemployment Agreement operations were reduced to forty (40)
hours per week averaged over a three (3) months' period, with a re-
sulting increase in employment of 28.6%. With the application of
the provisions of this Code there will be a further increase in the
number of employees, although it will not be substantially greater than
that already in effect as a result of the President's Reemployment
Agreement. The application of the minimum wages included in
said Agreement has brought about an increase in the payrolls of the
Industry at the rate of $1,500,000 annually. In this case also the
effectuation of the provisions of this Code will augment this rate.
It is not possible at this time to judge just what this increase will be;
however, it should be borne in mind that the Code establishes a mini-
mum wage for female employees of thirty two and one-half cents
(32%)) per hour as compared to the rate of thirty cents (300) effective
in July. Before this July period this class of employees was being
compensated at a rate as low as twenty cents (200) per hour.
An important feature of the Code is the prohibition contained in
Article XI against the sale in the United States of machine or sub-
machine guns or parts thereof, except to governmental subdivisions
or to organizations having regularly organized police departments
where such sale is authorized by the United States Attorney General.
This provision was suggested by the Department of Justice and has
been accepted by the Industry. I believe it to be a forward and
effective step in the Campaign against crime in this country.
The Code makes provision for resale price maintenance. It does
not establish any price maintenance as regards the sale of products to
the consumer, but deals with open price lists and agreements of price
maintenance between the manufacturers and the wholesalers in
selling to the retailers.
The Assistant Deputy Administrator in his final report to me on said
Code having found as herein set forth and on the basis of all the pro-
ceedings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and purposes
of Title I of the National Industrial Recovery Act, including removal
of obstructions to the free flow of interstate and foreign commerce
which tend to diminish the amount thereof and will provide for the
general welfare by promoting the organization of industry for the
purpose of Cooperative action among the trade groups, by inducing
and maintaining united action of labor and management under ade-
quate governmental sanctions and supervision, by eliminating unfair
competitive practices, by promoting the fullest possible utilization of
the present productive capacity of industries, by avoiding undue
restriction of production (except as may be temporarily required), by
increasing the consumption of industrial and agricultural products
through increasing purchasing power, by reducing and relieving
unemployment, by improving standards of labor, and by otherwise
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the pertinent
provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection
(b) of Section 10 thereof; and that the applicant group is an industrial
group truly representative of the aforesaid Industry; and that said
group imposes no inequitable restrictions on admission to membership
(d) The Code is not designed to and will not permit.monopolies or
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, therefore, I have approved this Code, provided,
however, that (1) the provisions of Article II, Section 1, dealing with
working hours be amended by inserting after the word "than" in the
second line the words "eight (8) hours per day or", by deleting the
period in the fifth line and inserting the words "; provided further
that no employee shall work in excess of nine (9) hours a day or six
days a week except as hereinafter provided"; (2) the provisions of
Article II, Section 1, Subsection (c) dealing with employees working
additional hours be amended by deleting the period and inserting the
words ", and provided further, that such hours shall not be availed
of in more than fifteen (15) weeks in any year, nor more than forty-
eight (4S) hours in any week"; (3) the provisions of Article II, Section
2, Subsection 2 dealing with minimum hourly rates be amended by
deleting the remainder of the Section after the word "females" in the
fifth line and inserting a period; (4) the provisions of Article VII,
Section 1, Subsection b, paragraph 1, dealing with resale price sched-
ules be amended by deleting the words "resale price schedules", in
the fourth line, by deleting the words "or resale" in the sixth and
seventh lines, by deleting the remainder of the paragraph after the
words "this Industry in the seventh line; (5) the provisions of Article
VII, Section 1, Subsection (b), paragraph 2, dealing with distribution
of price schedules be amended by deleting the period at the end of the
Section and inserting the words ", provided that the respective
schedules of prices for each class of trade shall be available at all rea-
sonable times to the bona-fide members of each class of trade served
by the Industry; provided further, however, that consumers' prices
shall be open to the public."; (6) the provisions of Article VII, Section
1, Subsection b, paragraph 5, dealing with resale price maintenance,
be amended by deleting this entire section and inserting the following
words "The Industry shall study and report to the Administrator
recommendations in regard to resale price maintenance"; (7) Article
XVI, dealing with waiving of constitutional rights, be deleted from
the Code; (8) Article XVIII, dealing with consent by the members to
modification, be deleted from the Code.
HUGH S. JOHNSON,
MARCH 22, 1934.
CODE OF FAIR COMPETITION FOR THE SMALL ARMS
AND AMMUNITION 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 Small Arms and Ammunition Manufacturing
Industry, and upon approval by the President, shall be the standards
of fair competition for this Industry.
(a) "Act" means the National Industrial Recovery Act.
(b) "President" means the President of the United States of
(c) "Administrator", as used in this Code, means the ADMIN-
ISTRATOR appointed by the President to administer Title I of the
National Industrial Recovery Act, and at the time in office.
(d) The "Industry" means and includes the business of manu-
facturing and/or selling by the manufacturer or selling by one known
to the public as a manufacturer selling principally for resale, small
arms and ammunition therefore; and components thereof, except
propellent powders; and clay targets and traps therefore; but does
not include jobbers, mail order houses, chain stores, and/or dealers.
(e) "Code Authority" as used herein, means the Code Authority
Committee created and described in Article VI hereinafter.
(f) "Secretary" means the person designated by the Code
Authority to act in that capacity for the Industry.
(g) "Member of the Industry" means any one engaged in the
Industry as an employer.
(h) "Employee", as used herein, includes any person engaged in
any phase of the Industry in any capacity receiving compensation
for his services, irrespective of the method of payment of his com-
(i) "Employer", as used herein, means any one by whom any
such employee is compensated or employed.
ARTICLE II-HOURS OF LABOR AND RATES OF PAY
SECTION 1-HOURS OF LABOR
1. No person employed in the Industry shall be permitted to
work more than forty (40) hours per week, provided that when
necessary to meet seasonal demand, forty-eight (48) hours per week
for twelve (12) weeks in any one year may be worked.
(a) Provided, however, that repairmen, shipping and delivery
crews, and cleaners shall be permitted to work not more than ten (10)
per cent in excess of the hours prescribed in this Section 1.
(b) Provided that watchmen may work fifty-six (56) hours per
week, but not more than six (6) days in any one week.
(c) Provided further that any employee at the request of the em-
ployer may work additional hours beyond those specified in the three
preceding paragraphs, provided such additional hours shall be paid
for at the rate of time and one-half.
(d) Provided further that the above hours do not apply in the
case of emergencies involving possible loss of life or property.
(e) Provided further that nothing in the foregoing employment
provisions shall apply to employees in an administrative or executive
capacity, supervisors, planners, and technical and research engineers,
receiving not less than $35.00 per week; and outside salesmen.
(f) No employer shall knowingly permit any employee to work for
any time which, when totalled with that already performed with
another employer or employers in this industry, exceeds the maximum
permit ted herein.'
SECTION 2-MINIMUM WAGES
1. No employer in the Industry shall pay any accounting, clerical,
office, service or sales employee at less than the rate of $15.00 per week
in any city of more than 500,000 population, or in the immediate
trade area of such city; at less than the rate of $14.50 per week in any
city of between 250,000 and 500,000 population or in the immediate
trade area of such city; or at less than the rate of $14.00 per week in
any city of less than 250,000 population.
2. No employer in the Industry shall pay any employee other than
as specified in the next preceding paragraph (1), less than forty (40)
cents per hour for males and thirty-two and one-half (321N) cents per
hour for females; provided, however, that in case the rate per hour for
any female employee was, on July 15, 1929, less than the minimum
rate above specified for the same class of labor, then the minimum rate
for such class of labor shall be the rate paid on July 15, 1929, but in
no event less than thirty (30) cents per hour.
3. This article establishes a minimum hourly rate of pay, which shall
apply irrespective of whether an employee actually compensated on
a time rate, piece work, or other basis.
4. Equitable and reasonable adjustments of pay schedules of em-
ployees, above the minimum, shall be made within thirty (30) days
after the effective date of this Code by any employer who has not
theretofore made such adjustments. The first reports of wages
required to be filed under this Code shall contain all wage increases
made since May 1, 1933.
5. Female employees performing the same class of work as male
employees shall receive the same rate of pay as male employees.
6. Beginners without experience may be employed for a period not
to exceed sixty (60) days, at the rate of not less than eighty (80) per
cent of the minimum wages covered by Section 2 of this Article II,
provided the total number of such beginners shall not exceed five (5)
per cent of the total number employed by any employer in any
On and after the effective date, no employer in this Industry shall
employ any person under the age of sixteen (16) years, and no person
under the age of eighteen (18) years shall be employed in any hazard-
i See paragraph 2 of order approving this Code.
ous occupation. Each member of the Industry shall furnish the Code
Authority a list of such hazardous occupations, if so requested.
ARTICLE IV-STATUTORY LABOR PROVISIONS
1. 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 col-
lective bargaining or other actual 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 refrain
from joining, organizing, or assisting a labor organization of his own
3. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
4. Labor agreements now in force between members and their
employees shall be affected only by such provisions of this Code as
may prescribe higher wages and shorter hours than are provided for
in such agreements.
5. Employees may be assigned to different kinds of work, but
employers shall not reclassify employees or duties of occupations
performed by employees so as to defeat the purpose of this Code.
6. Every employer shall make reasonable provision for the safety
and health of his employees at the place and during the hours of
their employment, by complying with the laws of the State in which
such employer's plant is located.
7. All employers shall post copies of that portion of this Code
pertaining to hours and wages in conspicuous places accessible to
The expenses of administering the Code shall be borne by the
members of the Industry. The Code Authority may, from time to
time, cause to be made such assessments against the members of the
Industry as the Code Authority shall deem proper, and such assess-
ments shall be payable as such Code Authority shall specify. The
assessments herein referred to shall be divided among the members
of the Industry according to the relation each member's dollar sales
bear to the total dollar sales of the Industry for the last preceding year.
1. To further effectuate the policies of the Act and to supervise and
enforce the provisions of this Code, a Code Authority, consisting of
not more than nine (9) or less than seven (7) members, including the
Chairman, no two (2) members of said Code Authority to be chosen
from one company, shall be selected by the members of the Industry
at a meeting thereof, after reasonable notice of said election has been
sent to all members of the Industry, by a majority vote of those
members of the Industry who are represented at the meeting, in per-
son or by proxy, in number, and value of sales for the last preceding
year. The members of the Code Authority shall serve for one year,
or until their successors shall have been chosen; and members of the
Code Authority shall, by a majority vote, elect their own Chairman.
The surviving members of the Code Authority shall fill any vacancy
or vacancies occurring therein for the unexpired portion of the par-
ticular term. In addition to the foregoing, the ADMINISTRATOR
may appoint from one (1) to three (3) members of said Code Author-
ity, without vote, and whose terms of office shall be so arranged that
they do not expire concurrently.
2. The Chairman of the Code Authority shall cause reasonable
notice to be sent to all members of said Code Authority for all meetings
thereof, specifying the time and place for holding the same. Each
member of the Code Authority shall be entitled to one vote and a
majority of the Code -Authority shall be necessary to constitute a
quorum for the transaction of business. The Code Authority shall
select a Secretary and make such arrangements as may be neces-
sary for administering this Code, subject to disapproval by the
3. Meetings of all the members of the Industry may be held from
time to time for the purpose of considering and acting upon any
matters relating to the administration of this Code. Upon request
to the Code Authority, signed by any three members of the Industry,
for an Industry meeting, the Code Authority shall forthwith call
such meeting, by causing notice, not less than five (5) days in advance
of such meeting, to be given to all other Industry members, speci-
fying therein the purpose of the meeting and the time and place for
holding the same.
4. Each member of the Industry shall be entitled to one vote, either
by company representative or duly authorized proxy, who would
have power to act. The presence of not less than seven (7) members
of the Industry shall be necessary for the holding of an Industry
meeting. Provided, however, that a majority vote in numbers, and
value of sales for the last preceding year of those members who are in
attendance or who are so represented at any such meeting, shall be
necessary for the determination of any question, but a lesser number
may adjourn the meeting from time to time. In the event of an equal
division upon any question, the Chairman shall cast the deciding vote.
5. The Code Authority shall, subject to review by the ADMINIS-
TRATOR, or when requested by the ADMINISTRATOR or his
representative, cause to be obtained from the members of the Industry,
statistical data and information in such form and manner as not to
disclose the individual figures, data and information of the respective
members, except to the ADMINISTRATOR, if required by him, or
to such disinterested person, or persons, as may be designated by the
Code Authority, and as may be necessary to enforce the provisions of
The Code Authority shall make available to the ADMINISTRA-
TOR such reports, data and information, in the manner herein.
specified, or as may be required by the ADMINISTRATOR, and
will assist in keeping the ADMINISTRATOR fully advised, and
confer with such representative of the ADMINISTRATOR from
time to time as requested, to consider and study any recommenda-
tions presented on behalf of the ADMINISTRATOR or any mem-
ber of the Industry regarding the operation, observance or adminis-
tration of this Code. The Code Authority may delegate any of its
duties to such agents as it may appoint, which would not involve the
disclosure of the individual data or information of the members of
the Industry, or any information required to be treated confidentially
as herein specified, except as otherwise herein permitted to be dis-
closed. The ADMINISTRATOR, or his representative, with the
approval of the President, may enter into agreements with the Code
Authority on behalf of the members of the Industry, with their con-
sent and approval relating to matters affecting the Industry, if, in
the judgment of the President, such agreement will aid in effectuating
the policy of the ACT, which agreements may be made in accordance
with paragraph (a.) of Section 4 of the ACT, and which do not con-
flict with clause (2) of sub-section (a) of Section 3 of. the ACT.
1. To provide for making available to the ADMINISTRATOR
and members of the Industry, information to assist in further effec-
tuating the policy of the ACT, each member of the Industry shall
furnish, from time to time to the duly selected Secretary, reports,
pertinent to the administration of this Code, properly certified when
requested by the Code Authority, in such form and manner as herein,
and as hereafter may be provided by the said Code Authority, subject
to review by the ADMINISTRATOR, including the following:
(a) Hours of Labor and Wages.-(1) Report showing hours of work
and rates of wages.
(b) Publicity of Price Lists.-(1) As used in this Article VII, the
term "schedules" means and includes price schedules and discount
sheets, resale price schedules, terms of payment, freight equalization
points, and any allowances or conditions relating to or in any wise
affecting the sale or resale of the products of this Industry. However,
the term "resale" or "resales" as mentioned in this Article VII shall
relate only to sales by those, who purchase from the members of this
Industry, to others who buy to resell and who do not buy for use or
(2) As soon as possible, after the effective date, as determined by
the members of the Industry, and when so determined thereafter, all
members shall file such schedules of prices with the Secretary from
time to time, as and when made or issued, for immediate distribution
to only those members of the Industry who manufacture and sell
(3) Revised schedules covering said products may be so filed by
any member of the Industry, for such immediate distribution from
time to time thereafter to become effective upon the date or dates
therein specified, but such revised schedules shall be filed with the
Secretary five (5) business days in advance of the effective date or
dates thereof. Any revised schedules subsequently filed by other
members of the Industry during such five (5) business day period
may be made effective on the same effective date of the revision pre-
viously filed, provided such subsequently revised schedules do not
contain prices relatively lower than those in said previously filed
revision,-otherwise the five day provision shall apply. Schedules
raising prices shall not require the above five (5) day notice and shall
be subject to immediate cancellation by notice to the Secretary at any
I Bee paragraph 2 of order approving this Code.
time within two (2) weeks of the date of filing of such schedules in-
(4) No member of the Industry shall sell, directly or indirectly, by
any means whatsoever, any product of the Industry covered by the
provisions of this Article VII, at a price lower or at a discount greater,
or on more favorable terms or conditions than those provided in his
(5) The products of this Industry, to a very large degree, are resold
and distributed by wholesalers, jobbers, and distributors to dealers,
retailers and others, and the resale of such goods by such wholesalers,
jobbers and/or distributors at a price or prices less than the manu-
facturers' schedules, would be in conflict with the principles of the
open price provisions contained in this Article VII. Accordingly,
members of this Industry may enter into agreements not to resell the
products of this Industry at prices and upon terms, discounts or
conditions which are less or more favorable to the purchasers thereof,
than those contained in the schedules of the manufacturers, who may
be parties to such agreements, in effect at the time of any such resale
(6) Except as otherwise specified herein, all reports mentioned in
this Article VII, shall be filed with and distributed by the Secretary
at such times and in such form and manner as may be determined
by the Code Authority.
The practices and methods as set forth in the following paragraphs
numbered 1 to 12 inclusive, including the sub-paragraphs thereof,
in this Article VIII, are hereby designated as unfair methods of compe-
tition, and indulgence by any member of the Industry in any of the
same shall be a violation of this Code.
1. Interference with Existing Contracts.-To knowingly interfere
with an existing contract with a third party for the sale and purchase
of products of this Industry, or to induce, attempt to induce, or
assist a party to break any such existing contract;
2. Gratuities, Free Small Arms and Ammunition, Samples and Tour-
nament Program Advertising.-(a) To give prizes or contributions, or
supply free, small arms, loaded paper shells or metallic cartridges to
individual shooters, gun clubs or associations, rifle clubs or associations
dealers or jobbers for the purpose of stimulating interest in and good
will for such products of any particular member of the Industry;
(b) To quote prices lower than one's own current published resale
prices on small arms or ammunition to individual shooters, gun clubs
or associations, or rifle clubs or associations, for the purpose of stimulat-
ing interest in or good will for such products of any particular member
of the Industry;
(c) To pay, furnish, give, or grant to any shooter or shooters any
salaries, compensation, benefit, small arms, ammunition or special
prize money for winning of matches or tournaments for the purpose of
inducing such shooter or shooters to use the small arms or ammunition
of the particular manufacturer;
(d) To give samples or free small arms and/or ammunition to
jobbers, dealers or others, except to bona fide and well-known writers
of arms and ammunition articles for their personal use only; a report
of each such gift to be made to the Secretary at time of shipment;
i See paragraph 2 of order approving this Code.
(e) To place directly or indirectly in any shooting program, any
advertisement for or on behalf of any member of the Industry or
(f) To fail to abide by and support the rules and regulations of any
shooting association or any similar organization which defines the
amateur status of a shooter, and in any way, directly or indirectly,
or through a representative, supply, free of charge or at less than the
particular member's own resale prices to dealers, any amateur shooter
with any of said products, or anything of value contrary to the rules
and regulations of any such association or organization;
Provided nothing herein shall preclude bona fide employees of any
member of the Industry from competing in tournaments, or from
using any of such described products of his own employer therein,
without personal payment therefore.
3. Commercial Bribery.-No member of the Industry shall give,
permit to be given, or directly offer to give, anything of value for
the purpose of influencing or rewarding the action of any employee,
agent, or representative of another in relation to the business of the
employer of such employee, the principal of such agent or the repre-
sented party, without the knowledge of such employer, principal or
party. Commercial bribery provisions shall not be construed to
prohibit free and general distribution of articles commonly used for
advertising, for commercial bribery as hereinabove defined;
4. Defamation of Competitors.-To make, cause or permit to be
made, or published any false statement or misrepresentation of or
concerning the business, policies, methods, or products of a competitor;
5. Piracy of Trade Marks.-To imitate trade marks, trade names,
slogans or other marks of identification, in which another has acquired
good will, for the purpose and with the effect of misleading purchasers;
6. False Advertising.-To make, cause, or permit to be made or
published any false, untrue, or deceptive statement by way of adver-
tising or otherwise;
7. lisbranding.-To falsely mark or brand packages or products
of this Industry, for the purpose or with the effect of misleading or
deceiving purchasers or others with respect to quality, quantity,
character, grade or substance thereof;
8. False Invoicing.-To withhold from or insert in an invoice
anything which would make the invoice a false record, wholly or in
part, of the transaction in question, or make any arrangement which
would contemplate payment or settlement contrary to the face of
9. Post-Date or Pre-Date Contract or Invoice.-To post-date or
pre-date any contract or invoice covering products of this Industry;
10. Guaranty Against Price Decline.-To guarantee against price
decline except as the same may be limited to the decline of the particu-
lar member of the Industry, and such guaranty shall apply only to
small arms purchased directly from the manufacturer in the same
calendar year, and to ammunition purchased directly from the manu-
facturer during any twelve months commencing with March 1, and in
each instance which are not delivered or which are in the hands of the
purchaser and unsold;
11. Consignments.-To make or enter into any agreement or con-
tract, the effect of which will amount to the sale and/or delivery on
consignment of any products of this Industry, except powder supplied
to ammunition companies, or to the lending of products for display
purposes only; provided however, that no existing agreements of this
nature shall be continued on and after the effective date of this Code;
12. Secret Rebates.-To pay or allow secretly, rebates, refunds,
commissions or discounts, whether in the form of money or otherwise,
except such as are obligatory under existing agreements, but in no
case shall any such agreement apply to any transactions or shipments
on and after the effective date of this Code.
1. If formal complaint has been made to the Secretary that any
provision of this Code has been violated by any such member, the
Code Authority shall cause the facts to be investigated, and to that
end may cause such reasonable examination or audit as may be neces-
sary, by a competent or disinterested person or persons mutually
agreed upon by the Code Authority and such member against whom
the complaint has been made, or by such person or persons nominated
by the Code Authority and approved by the ADMINISTRATOR.
PROVIDED, if it should appear that any reports or data called for
by this Code were willfully made inaccurate or not filed by any such
member when and as herein required, or that any such member had
indulged in any trade practice in violation of this Code, the expenses
of such verifying work shall be paid by the party so in default.
2. Since any violation of the provisions of this Code will cause
injury to members of the Industry and the amount of such injury
would not be readily ascertainable, it is therefore agreed by and
between all such members of the Industry who have so expressly, in
writing or otherwise, assented to the provisions of this Article IX that
each of such members who violates any provision of this Code shall
pay to the Secretary, or such person as the Code Authority may
designate, as and for liquidated damages, such sum as the Code
Authority, or the ADMINISTRATOR, may determine, not exceed-
ing, however, five hundred dollars ($500.00) for each violation, in
addition to any other sums required to be paid by the provisions of
this Code. Any and all moneys which may be paid to the Secretary
as and for such liquidated damages shall be used for the expense of
administering the Code, or otherwise, as may be determined by the
1. The Code Authority may-investigate and inform the President
or the ADMINISTRATOR on behalf of the Industry: 1st: As to the
importation into the United States of commodities competitive with
products of this Industry selling on a price basis which undersell said
products of domestic manufacture; and
2nd: As to the manufacture of articles competitive with products
of this Industry by the Government of the United States at its
various Arsenals under longer schedules of hours of labor and/or
lower rates of pay than the standards o. hours and rates of pay estab-
lished by this Code, and selling on a price basis which undersells
such commodities by members of this Industry; and
3rd: As to the extent to which such underselling of said imports
and United States Government manufactured articles, as well as
the extent to which the schedule of hours of labor and rates of pay
adopted and followed by the Government of the United States in
the manufacture of such goods, renders ineffective or seriously
interferes with the maintenance of this Code.
2. The conditions as set forth in the preceding three subpara-
graphs, may be made the basis for complaint to the President or
the ADMINISTRATOR on behalf of this Industry.
3. Except as may be subsequently set forth in a specific or supple-
mentary Export Code for the Industry, the provisions of this Code
now or hereafter adopted with regard to prices, discounts, deduc-
tions, allowances, extras, commissions, or methods and/or terms of
sale, are not to apply to direct export sales or to sales in course of
export (i.e., sales destined ultimately for export) or to sales of
materials used in the manufacture of products for export.
Members of the Industry shall have the right to sell or otherwise
dispose of machine guns or sub-machine guns or parts therefore only
to the United States Government, any State, Territoiy, or possession
of the United States, and political sub-division thereof and the District
of Columbia; provided that with the consent of the United States
Attorney General they may be disposed of to National, State banks
or to corporations or other business associations having regularly
organized police departments, and to manufacturers of ammunition
in the United States for testing purposes; provided further, that such
members shall have the right to sell machine or sub-machine guns or
parts thereof for export, under such rules and regulations as may be
promulgated by the United States Secretary of State.
During any emergency involving actual or possible National
defense, the provisions of this Code establishing maximum hours of
labor shall not apply to the manufacture of such of the products of
this Industry as are demanded by the War and Navy Departments.
Such of the provisions of this Code as are not required to be in-
cluded herein by the National Industrial Recovery Act may, with the
approval of the ADMINISTRATOR, 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 approval of the ADMINIS-
TRATOR, to prevent unfair competition in price, and other unfair
and destructive competitive practices, and to effectuate the other
purposes and policies of Title I of the ACT. Such supplemental
provisions or additional Codes when approved by the ADMINIS-
TRATOR shall have the same force and effect as any other provisions
of this Code.
If any employer in the Industry is also an employer in any other
Industry, the provisions of this Code shall apply to and affect only
that part of the business of such employer which is included in this
The President, in accordance with the provisions of subsection (b)
of Section 10 of the National Industrial Recovery Act, may from time
to time, cancel or modify any order, approval license, rule or regula-
tion issued under Title I of said ACT.
By presenting this Code, those assenting hereto are not thereby
waiving any of their constitutional rights which might be infringed
by any of the provisions of the National Industrial Recovery Act.2
Within each State members of the Industry shall comply with
any laws of such State imposing more stringent requirements upon
employers than'as set forth in this Code relating to hours of work,
wages, or age of employees.
By presenting this Code, the members of the Industry do not
thereby consent to any modification thereof, and they hereby reserve
the right to object individually or jointly to any such modification.2
No employer shall use any subterfuge to frustrate the spirit and
intent of this Code.
Any action taken by the Code Authority or other group within
the Industry for the purpose of making effective provisions of this
Code may be submitted to the ADMINISTRATOR for approval,
and shall, in any case, be subject to the disapproval of the ADMIN-
Nothing contained in this Code shall constitute the members of
the Code Authority partners for any purpose. Nor shall any member
of the Code Authority be liable in any manner to anyone for any act of
any other member, officer, agent, or employee of the Code Authority.
Nor shall any member of the Code Authority exercising reasonable
diligence in the conduct of his duties hereunder, be liable to anyone
for any action, or omission to act, under this Code, except for his
own wilful misfeasance, or nonfeasance.
I Deleted as per paragraph 2 of order approving this Code.
No provision of this Code shall be so applied as to permit monopolies
or monopolistic practices or to eliminate, oppress or discriminate
against small enterprises.
The effective date of this Code shall be 12.01 A.M. the second
Monday after this Code shall have been approved by the President.
Approved Code No. 354.
Registry No. 1109-1-01.
UNIVERSITY OF FLORIDA
III1001 I A Y IA 1 N IfI I llllll ll llIr1111111
3 1262 08855 5767
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