Registry No. 607-1-01
ar ale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code No. 407
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Approved Code No. 407
CODE OF FAIR COMPETITION
DRY COLOR INDUSTRY
As Approved on April 25, 1934
APPROVING CODE OF FArR COMPETITION FOR THE DRY COIOR IINDUSTKY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National In1dutrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Dry Color Industry, and hearings having
been duly held thereon and the annexed report on said Code, con-
taining 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, how-
ever, that Article VII, Section 3, and Article VIII be deleted from
HUGH S. JOHNSON,
Addministrator for Industrial Recovery.
GEO. L. BERRY
April 25, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report of the hearing on the Code of Fair Competi-
tion for the Dry Color Industry, conducted in Washington on
November 28, 1933, in accordance with the provisions of Title I of
the National Industrial Recovery Act.
The Code provides that no employee shall be permitted to work
for n average of more than forty hours per week in any two months'
period, such periods conuuencing on January 1 of each year, nor
more than forty-eight hours in any one week, but not so as to exceed
an average of forty hours per week during such two months' period
and that any employee compensated on an hourly basis shall be paid
time and one-third for time in excess of ten hours in any twenty-
four hour period or forty hours in any one week, except as follows:
Maintenance and repair crews, etc., are allowed a tolerance of ten
per cent and time and one-third is to be paid for time in excess of
eleven hours in any twenty-four hour period or forty-four hours in
any one week. In cases of emergency effecting life or property,
repair crews and electricians and their respective assistants may be
employed for whatever number of hours per week are necessary, pro-
vided that time and one-third shall be paid for time in excess of
forty-eight hours in any one week. Executive, administrative,
supervisory staffs and color chemists who earn $35 per week or more
and who also enjoy vacation periods, sick leave and other benefits
granted to salaried workers, are excepted. For a period of nine
months after the effective date of the Code, color matchers may be
employed not in excess of forty-eight hours per week, after which
period they shall be subject to the general hours provisions. During
periods of season or peak demands in a department, not to exceed
six weeks in any six months' period, employees may be permitted to
work for an average of forty-four hours per week but not in excess
of forty-eight hours per week and time and one-third overtime is to
be paid for hours in excess of eleven hours in each twenty-four hour
period of forty-four hours in any one week. There is an exception
also applying to the manufacturers of earth colors which requires
open-air clay and shale digging operations to be carried on when
the weather is favorable. These employees may not work in excess
of forty-eight hours per week during any six months' period from :
May 1 to October 31, inclusive, in each calendar year but the average :
weekly hour., of work of such employees shall not exceed forty per
week for the full calendar year.
The Code provides minimum wages of forty cents per hour in
plants located in cities having a population of 350,000 or over or in
the immediate trade area of such city and in all other plants a
rate of 36 cents per hour except as follows: Employees of the manu-
facturers of earth colors, operating in towns, villages or communities
of not more than 6,000 population in the states of Tennessee, Ala-
bama, Georgia, and Virginia shall receive a minimum hourly wage
of 30 cents. The minimum wages for laboratory apprentices for
a period of six months from the date of employment, and office boys
and office girls shall not be less than 80% of the minimum wages
above specified, provided that the total number of such employees
shall not exceed 5% of the total number of employees of any em-
ployer subject to the Code.
Applying to wages above the minimum, the Code provides that,
based upon changes in minimum pay necessitated by the foregoing
paragraphs of this Article, each employer shall make fair and
equitable readjustment of all pay schedules unless such readjustment
has already been made subsequent to June 16, 1933.
The Code includes provisions covering minimum age of employees,
on reclassification of employees, the application of State laws arid
for posting all current copies of the Code in places accessible to
Other provisions include a very limited number of trade practice
provisions, most of which are of the standard recognized type of
fair trade practice provisions. There is no open price association
provided for or any provision prohibiting sales below cost.
ECONOMIC EFFECT OF THE CODE
This Industry produces color pigments by various processes which
are essentially batch operations that vary greatly in time required
for completion. Out of seventy-six known companies which did a
total estimated business in 1929 of $16,000,000 and in 1932, of $12,-
500,000, thirty-seven of these, from whom questionnaire returns were
received, accounted for $14,378,000 in 1929 and $10,452,000 in 1932.
Under normal conditions most. plants in the Industry have in
the past operated on a basis of fifty hours a week. The Industry
did not release its employees noticeably after 1929. The above
thirty-seven companies, according to the compilation made by the
Division of Economic Planning and Research, had 1,130 employees
in 1929 and an average of 1,129 in 1932 and somewhat less in the
first half of 1933.
Under the President's Reemployment Agreement which required
an average of forty hours per week 1,458 employees were on the
payrolls of these thirty-seven companies in the last week of October,
1933, an increase of 34%. Practically no decrease of employment
is shown in 1932 in spite of a 22% decrease in dollar value of the
business. The dollar value of the business in the Fall of 1933 was
at a rate which about equalled the average for 1929.
On account of the specialized nature of the business and the
"style" factor involved, it is not practical to make up much in-
ventory stock in advance. In view also of the fact that practically
all of the manufacturing operations of the Industry are batch opera-
tions, a certain flexibility in the hours provisions of the Code is
essential and has been provided for.
Referring to the effect of the minimum wages specified in the
Code, the report of the Division of Economic Research and Plan-
ning states as follows:
The estimated increase of payroll due to the operation of the
Code (as revised for public hearing on November 28) would be
about 6% above present levels. However, since payrolls are al-
ready at about the 1929 levels (due to the operation of the Presi-
dent's Reemployment Agreement) this additional increase in pay-
rolls will bring them to about 5% above the 1929 level."
The addition of provisions for overtime in the Code as submitted
for approval as compared with the Code as filed for public hearing
will have some slight effect in increasing the payrolls.
I find that:
(a) Said code is well designed to promote the policies and pur-
poses 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 pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and manage-
iment under adequate 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 tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(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 perti-
nent provisions of said Title I of said Act, including without limi-
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associa-
tion is an industrial association truly representative of the aforesaid
Industry; and that said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The code is not designed to and will not. permit monopolies
or monopolistic practices.
(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
For these reasons this code has been approved.
HUGH S. JOHNSON,
APRIL 25. 1934.
CODE OF FAIR COMPETITION FOR THE DRY COLOR
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code
of Fair Competition for the Dry Color Industry, and upon approval
by the President shall be the standard of fair competition for such
Dry Color Industry and shall be binding upon every member
(a) The term Dry Color Industry as used in this Code shall
include the manufacture for sale as a raw material, to manufacturers
of other products, Pigment. Colors (except White, Bone Black and
Organic Black Pigments) of organic or inorganic origin as a com-
pleted product, either in dry form or dispersed, ground or suspended
in water, oil, varnish, or any other vehicle.
(b) The term member of the Industry includes, without limita-
tion, any individual, partnership, association, corporation or other
form of enterprise engaged in the Industry, either as an employer
or on his or its own behalf.
(c) The term employee as used herein, includes any and all
persons engaged in the Industry, however compensated.
(d) The term President ", "Act ", and "Administrator" as u.-ed
herein shall mean respectively, the President of the United States,
the National Industrial Recovery Act, and the Administrator for
(e) Population for the purposes of this Code shall be determined
by reference to the 1930 Federal Census.
(f) The term "effective date as used in this Code is defined to
be the tenth day after the approval of this Code by the President of
the United States.
ARTICLE II-STATUTORY PROVISIONS RELATING TO EMPLOYEES
As required by Section 7 (a) of Title I of the National Industrial
Recovery Act, the following provisions are conditions of this Code:
"(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
to refrain from joining, organizing, or assisting a labor organiza-
tion 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.."
ARTICLE III-MAXIMUM HOURS OF LABOR
SECTION 1. No employee shall be employed at an average of more
than 40 hours per week in any two months' period, such periods com-
mencing on January 1 of each year, nor more than 48 hours in any
one week, but not. so as to exceed the average of 40 hours per week
during such two months' period; and any such employee compen-
sated on an hourly basis shall be paid time and one-third for time in
excess of 10 hours in any 24 hour period or forty hours in any one
week; the foregoing provision shall apply in all cases except:
(a) Maintenance and repair crews, shipping crews, engineers, fire-
men and electricians shall be allowed a tolerance of 10% and time and
one-third shall be paid for time in excess of 11 hours in any 24 hour
period or 44 hours in any one week.
(b) In cases of emergency affecting life or property, repair crews
and electricians and their respective assistants may be employed for
whatever number of hours per week are necessary by reason of such
emergencies, provided, however, that time and one-third shall be paid
for time in excess of 48 hours in any one week and provided further
that any time involved in such emergencies shall not be computed in
determining the average hours per week.
(c) Traveling salesmen and watchmen; employees engaged in
executive, administrative or supervisory capacity and color chemists,
earning $35.00 per week or more, who enjoy vacation-periods, sick
leave and other benefits granted to salaried workers.
(d) For a period of nine months after the effective date of this
Code, color matches may be employed not in excess of 48 hours per
week after which period they shall be subject to the provisions of
Section 1, hereof.
(e) During periods of season or peak demands in any department
or division of the Industry which place an unusual and temporary
requirement for production upon such department or division, it shall
be permissible to work employees in such departments or divisions
for 44 hours per week averaged over any six weeks' period, but not
more than 48 hours in any one week. Such periods of season or peak
demands shall be limited to not more than 6 weeks in each half of
each calendar year and time and one-third shall be paid for time
worked in excess of 11 hours in each 24 hour period or 44 hours in
any one week.
(f) With respect to manufacturers of Earth Colors, all employees
engaged in open-air clay and shale digging operations, or engaged in
operations in isolated communities where qualified labor is not and
cannot be made available, may work not in excess of 48 hours per
week during the six months' period from May 1 to October 31, inclu-
sive, in each calendar year; but the average weekly hours of work of
such employees shall not exceed 40 hours per week for the full
ARTICLE IV--MINIMUM WAGES OF EMPLOYEES
SECTION 1. (a) The minimum wages of employees in the Dry Color
Industry, except laboratory apprentices and office boys and office girls,
shall be at the rate of 40 cents per hour in plants located in any city
of 350,000 population or over, or in the immediate trade area of such
city; and in all other plants, at the rate of 36 cents per hour, except
as hereinafter provided:
(b) With respect to manufacturers of Earth Color- operating in
towns, villages, or coinmunities of not. more than 6,000 population
in the States of Tennessee, Alabama. Georgia. and Virginia, the
minimum hourly rate shall be 30 cents.
(c) The minimum wages for laboratory apprentices (for a period
of six months from date of employment) and office boys and girls,
shall be not less than 80% of the minimum wage hereinabove pro-
vided; and the total number of laboratory apprentices and office
boys and girls employed at this rate shall not exceed 5% of the total
employees of any employer subject to this Code; but each employer
may have at least one such office boy or girl and one such laboratory
(d) It is agreed that this Article establishes a guaranteed mini-
mum rate of pay regardless of whether the employee is compen-
sated on the basis of a time rate or on a piecework performance.
(e) Based upon changes in minimum pay necessitated by the
foregoing paragraphs of this Article, each employer shall make fair
and equitable readjustments of all pay schedules, unless such read-
justment has already been made subsequent to June 16, 1933.
ARTICLE V-GENERAL LABOR PROVISIONS
(a) No person shall be employed in the Dry Color Industry who
is under the age of sixteen years; nor under the age of eighteen years
at operations or occupations which are hazardous in nature or dan-
gerous to health, provided, however, that where a State law provides
a higher minimum age, no person below the age specified by such
State law shall be employed within that State.
(b) Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the
Act, or the provisions of this Code.
(c) Within each State members of the Industry shall comply
with any laws of such State imposing more stringent requirements
regulating the age of employees, wages and hours of work than those
specified under this Code.
(d) Each employer shall post in conspicuous places accessible to
employees, full current copies of this Code.
SECTION 1. 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. The Code Authority shall con-
sist of seven individuals, or such other number as may be approved
from time to time by the Administrator, to be selected as herein-
after set forth. The Administrator, in his discretion, may appoint
not more than three additional members without vote to represent
the Administrator or such groups or interests as may be agreed upon
without expense to the Industry.
SECTION 2. Within ten days after the effective date of this Code,
on five days' prior notice to all members of the Industry, a Code
Authority shall be elected at a meeting of the Dry Color Industry by
a fair method of election subject to the approval of the Administra-
tor to serve for a period of one year and until their successors are
elected and qualify. A vote of not less than 66%%/3 of the members
of the Industry, present in person or by proxy, who have assented
to the Code, said percentage furthermore to comprise not less than
6623 of the total volume of sales in dollars of the preceding calen-
dar year of Inorganic Colors, Organic Colors and Mineral Colors
of members present, in person or by proxy, shall be necessary for the
election of any individual. Such voting power to be determined by
certified reports submitted by members of the Industry, at the re-
quest of the Code Authority, of their sales in dollars for the previous
calendar year of the products defined in Article I of this Code.
The Code Authority shall consist of at least one individual repre-
senting each of the following groups, respectively, Inorganic Colors,
Organic Colors, and Mineral Colors.
SECTION 3. 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 re-
quire an appropriate modification in the method of selection of the
SECTION 4. If the Administrator shall determine that any action
of the Code Authority or any agency thereof may be unfair or
unjust or contrary to the public interest, the Administrator may re-
quire that such action be suspended to afford an opportunity for
investigation of the merits of such action and further consideration
by such Code Authority or agency pending final action which shall
not be effective unless the Administrator approves or unless he shall
fail to disapprove after thirty days' notice to him of intention to
proceed with such action in its original or modified form.
The Code Authority shall have the following duties and powers
to the extent permitted by the Code:
(a) To collect from the members of the Industry all data and
statistics which may be necessary for the proper administration of
this Code. Any data and/or statistics of a confidential nature shall
be collected and compiled by a firm of certified accountants or other
suitable agents selected by the Code Authority, and not a member
or connected with a member of the Dry Color Industry. The data
and 'or statistics so collected by such agents shall be disseminated
only in combination with other information of the same type and
in such forms as will not disclose the individual data or statistics
furnished by any member. No member of the Code Authority, no
member of the Industry, and no officer, director, employee, or agent
of any member of the Dry Color Industry, or any other person shall
at any time have access to or be furnished in any manner with any
information by said agents which would disclose the individual data
or statistics furnished by any member.
7l (b) To represent the Dry Color Industry in conferring with the
Administrator with respect to the application of this Code and of
said Act and any regulations issued thereunder, and receive com-
plaints and if possible adjust the same, and to receive any proposals
for supplementary provisions or amendments of this Code and
transmit the same to the Administrator.
(c) All such other powers and duties as shall be necessary or
proper to enable it fully to administer the Code and to effectuate its
purpose and the purpose of the Act.
(d) The Code Authority shall carefully investigate all complaints
it may receive of any violation of the provisions of this Code. If a
complaint is sustained, the cost of the investigation thereof shall be
borne by the member of the Industry against whom such complaint
? is sustained, such cost to be determined by the Code Authority and
4 to be paid to it.
(e) Each member of the Industry accepting the benefits of the
activities of the Code Authority shall pay to the Code Authority
his proportionate share of the amounts necessary to pay the cost of
assembling, analyzing, and publication of such reports and data,
and of the maintenance of the Code Authority, in connection with
Sits activities relative to the preparation and administration of this
Code, such proportionate share to be based on the volume of business
and such other factors as the Code Authority may prescribe subject
S to review by the Administrator.
(f) 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
J.. Code Authority, exercising reasonable diligence in the conduct of
his duties hereunder, nor be liable to anyone for any action or
S omission to act under the Code, except for his own willful misfea-
sance or nonfeasance.
ARTICLE VII-ADDITIONAL STATUTORY PROVISIONS
SECTION 1. Neither this Code, nor any provisions contained therein,
is designed to promote monopolies or monopolistic practices, or to
eliminate or oppress small enterprises, and shall not be interpreted
or applied in such manner as to discriminate against small enter-
prises. The said Code shall be interpreted and applied in such a
manner as to effectuate the policy of Title I of the National Indus-
trial Recovery Act.
... SECTION 2. The President of the United States may from time
Sto time cancel or modify any order, approval, license, rule, or regu-
A lation issued under Title I of the National Industrial Recovery Act.
SECTION 3. By presenting this Code, those assenting hereto do
:: not thereby consent to any modification thereof and do reserve the
right to object individually or jointly to any such modification.1
ARTICLE VIII-CONSTITUTIONAL RIGHTS
Assent to this Code shall not be deemed a waiver of any constitu-
I Deleted-see paragraph 2 of order approving this Code.
AnTICLE IX-TRADE PRACTICES
The following trade practices are hereby declared to constitute
unfair methods of competition. The use of any of them by any
member of the Dry Color Industry shall constitute a violation of
this Code, and is hereby prohibited:
(a) No member of the Industry shall give, permit to be given,
or directly offer to give any bribe, gratuity, gift, other payment or
remuneration, or 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 em-
ployee, the principal of such agent or the represented party, without
the knowledge of such employer, principal or party. This provi-
sion shall not be construed to prohibit free and general distribution
of articles commonly used for advertising, except insofar as such
articles are actually used for commercial bribery as hereinabove
(b) Procuring by surreptitious methods any information concern-
ing the business of any member of the Industry which is properly
regarded by such member as a trade secret or confidential within
its organization, excepting therefrom information relating to a
violation of any provision of this Code.
(c) Imitating or simulating any design, style, mark or brand used
by any other member of the Industry.
(d) False or misleading advertising.
(e) Disseminating, publishing, or circulating any false or mis-
leading information relative to any product or price for any product
of any member of the Dry Color Industry, or the credit standing,
or ability of any member thereof to perform any work or manu-
facture or produce any product, or to the conditions of employment
among the employees of any other member thereof.
(f) Inducing or attempting to induce by any means any party to
a contract with a member of the Dry Color Industry to violate such
(g) Members of the Industry shall recognize the right of em-
ployees to use all honorable and reasonable efforts to better their
conditions, but shall refrain from directly or indirectly soliciting or
bidding for the services of the employee of another member. Only
when such an employee takes the initiative, shall a member of the
Industry have the right to negotiate with him about prospective
(h) The false marking or branding of any product of the Industry,
whether as to the grade, quality, quantity, substance, character,
nature, origin, size, finish, or preparation or otherwise.
(i) Paying or allowing to any purchaser in connection with the
sale of any product any rebate, commission, credit, discount or con-
cession other than is specified in the contract of sale. The maximum
rate of cash discount shall in no case exceed 1%.
(j) The provisions of Article IX shall not apply to sales for
export to foreign countries.
Approved Code No. 407.
Registry No. 007-1-01.
1 .. .
UNIVERSITY OF FLORIDA
II IIIIIl I II111111 11 i
3 1262 08584 7407