Code of fair competition for the processed or refined fish oil industry as approved on August 8, 1934

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Material Information

Title:
Code of fair competition for the processed or refined fish oil industry as approved on August 8, 1934
Portion of title:
Processed or refined fish oil industry
Physical Description:
p. 39-55 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Fish oil industry -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 612-01."
General Note:
"Approved Code No. 500."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004938343
oclc - 63654774
System ID:
AA00008053:00001

Full Text




Approved Code No. 500 Registry No. 612-01


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE

PROCESSED OR REFINED

FISH OIL INDUSTRY


AS APPROVED ON AUGUST 8, 1934


UNIV. OF FL LiB.




U.S. DEPt.C-..o




UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


r e the Superintendent o Document, Wa on, D.CPrice 5 ent
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 rents


Approved Code No. 500


Registry No. 612-01

























This publication is for sale by the Superintendent of Documents, Government
Printing Office. Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
At;liiin, Ga.: 50.1 Post Office BLuibliug.
Iirininiuham, Ala.: 257 Federal Building.
Bo.-ton, 3Mass.: 1S01 Custumhouse.
Bufftalo, N.Y.: Chamber of Commerce Building.
Clarleston,. S.C.: Chamber nf Commerce Building.
ChiiaiCo, Ill.: Suite 17(G, 201 North \Wells Street.
Clevelan.d. Ohio: Chlamber oif Commerce.
Dallas, Tex. : ClIm!Ibler O.f ColIIjmLrcLe Building.
Detroit, Mich.: S01 First National Bank Building.
Houston, Tes.: Chamber of Commerce Building.
Indian'apolis, Ild.: :Chamber of Commerce Building.
Jacksonville. Fla.: Chamber of Commerce Building.
Kanlsas City, M.o.: 1028 Baltimore Avenue.
Los Angeles. Calif.: 1163 South Broadway.
Louisville. Ky.: -l10 Federal Building.
Memilpis, Tenn.: 229 Federal Building.
Iin-'lcai-olis, Mminn.: 213 Federal Building.
New Orlenns, La.: Room 225-A, Custumlouse.
New York. N.Y.: 734 Customhouse.
Norfolk. Va.: 406 East Pluime Street.
Philadelhiiia. Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Cha:lmber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, 1Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Waslh.: 809 Federal Office Building.














Approved Code No. 500


CODE OF FAIR COMPETITION
FOR THE

PROCESSED OR REFINED FISH OIL INDUSTRY

As Approved on August 8, 1934


ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE PROCESSED OR
REFINED FISH OIL INDUSTRY
An application having been duly made puirsnant 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 Processed or Refined Fish Oil 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 Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said annecx-d
report and do find that said code complies in all respects with the
pertinent provisions and will promote the policy and purposes of
said Title of said Act; and do hereby order that said code of fair
competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator for Indwutrial Recovery.
Approval recommended:
ARMIN W. RILEY,
Division Administrator.
WASHINGTON, D.C.,
August 8, 1934.
79269'--104 4-45---34-1 (39)













REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: Tlis, is a report on the Code of Fair Competition for the
Processed or Refined Fish (il Industry, as revised after the Public
Hearing held in Washington, D.C., on March 17, 1934, in accordance
with the provisions of the National Industrial Recovery Act.
I. DESCRIPTION OF THE INDUSTRY
The industry covers the refining of fish oil by various processes
as outlined in the code, and the selling of the resultant product as
refined or processed fish oil. The improvement. in the technical refin-
ing methods during recent years lha-, permitted the use of refined fish
oils in a wider range of products than wats formerly the case. A
large, but unknown, quantity of crude fish oil is refined by operators
who use t.he refined oils in their own further mianu1facture. Such
operators are not covered by the code as they do not sell the refined
oils as such.
Most of the refined oil- produced by this indu-stry are used by
manufacturers of paints and floor coverings. The manufacture of
vitamin tested oils solely for therapeutic purpose- is not included
in this indu-;try, but when such oils are sold in competition with
ordinary refined or processed fish oils, the ciNde provisios shall be
applicable therto. For paint and floor covering uses, the refined
fish oils are in direct, competition with linseed, perilla,, and other
vegetable drying oilS,, niost of which are of foreign origin.
The refineries are generally fairly large iand are located either
near the sources of supply or near the points where their products
are used. There are a number of business organizations which are
brogilit. in part. under the provisions of this code due to the fact
that they do soIme refining or processing of fish oil at the same time
they carry on other operations. In order to maintain fair competi-
tive conditions, it is believed that both the refiners- who refine as their
p inicipal business and tlose who refine incidentally to other opera-
tions should work under the same conditions.
There are al:(out ten distinct business entities in the industry, oper-
ating some twenty plant-. The value of the refined or processed oil
produr-',d annually is alpproximately five million dollars, which
roughly clluals tlie invested capital. The employees in the industry
number between 600; and 700 according to reliable estimates.
II. LABIiR PiROVISKINS
The code provisions will result in a considerable reduction in work-
ing holl and should increase employment, by some 2L0 or 25 percent.
Wages in the indlistry have been high and there will be but. little
(-40)




"!'**










increase in the individual pay as a result of the code provisions.
The wages proposed are up to or above those generally provided in
codes.
III. UNFAIR METHODS OF COMPETITION

The code contains the usual unfair trade practices, including the
new provisions relative to open prices. In addition, the code pro-
vides for the elimination of future contracts containing a guarantee
against price declines, and also makes a provision for the establish-
ment of grades and standards.

IV. ADMINISTRATION

The code attempts to provide for the protection of the large,
medium arid small size operators by establishing a code authority
of four members made up in a designated manner to represent each
of these groups, with a fifth member from outside the industry, to
be elected by the four others. Reports of annual production are
required from all members, and these are to be used in classifying
members as large, medium and small size. Assessments for the
expenses of code administration are based on the annual production
of each member.
V. FINDINGS

The Deputy Administrator in his final report to me on said code,
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
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 provide
for the general welfare by promoting the organization of industry
for the purpo-e of cooperative action among the trade groups, by
inducing and maintaining united action of labor and mnanrgement
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present. productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required by increasing the consumption of industrial, fishery, and
agricultural products through increasing purchasing power, by
reducing 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 per-
tinent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant asso-
ciation is an industrial association truly representative of the afore-
said industry; and that said association imposes no inequitable
restrictions on admission to membership therein.








42

(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 code.
For these reasons, therefore, I have approved this code.
Respectfully,
HUGH S. JOHNSON,
Admin istrator.
AUGUST 8, 1934.














CODE OF FAIR COMPETITION FOR THE PROCESSED OR
REFINED FISH OIL INDUSTRY

ARTICLE I-PURPOSE

SECTION 1. 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 processed or refined fish oil
industry, and shall be the standards of fair competition for such
industry, and shall be binding upon every member thereof.

ARTICLE II-DEFINITIONS

SECTION 1. As used in this code:
(a) The term "President means the President of the United
States.
(b) The term "Act and the term "Administrator" mean re-
spectively Title I of the National Industrial Recovery Act, and the
Administrator for Industrial Recovery.
(c) The term processed or refined fish oil industry" or "indus-
try means the business of processing or refining fish oil (either
directly or through the emplloyment of an independent contractor,
an agent, or through any other instrumentality) for sale or delivery
as processed or refined fish oil; and such related branches or subdi-
visions as may from time to time be included under the provisions of
this code.
(1) The term processing'" means the blowing of air through or
into fish oil to oxidize or polymerize it; treating such oil with heat
or organic or inorganic chemicals; deodorizing such oil with steam,
air, or chemicals: bleaching such oil with inert earths or chemicals;
and. or destearinizing such oil by removing to any degree therefrom
the fats contained therein which have a high melting point.
(2) The term refining means the treatment of fish oils by alka-
line substances or acids (organic or inorganic) or by inert earths.
(d) The term member of the industry includes any individual,
partnership. association, corporation, or other form of enterprise en-
gaged in the industry, either as an employer or on his or its own
behalf.
(e) The term employeee means any individual engaged in the
industry in any capacity, however compensated, except a member of
the industry.
(f) The term employer means any member of the industry by
whom any such employee is compensated or employed.
(g) The term State includes the several states, the District of
Columbia, the several Territories of the United States, and the in-
sular possessions or other places under the jurisdiction of the United
States.
(43)









(h) The term subsidiary means any member of the industry of
or over whom a member of the industry has, either directly or in-
directly, actual or legal control, whether by stock ownership or in
any other manner.
(i) The tern affiliate means any ilember of the industry who
has, either directly or indirectly, actual or legal control of or over
a member of the ind!litry, whether by stock ownership or in any
other 1i1::nI1n'r.
(j) The term outside salesmann means any salesman who per-
forms exclusively elline functions outside the establishment of a
memIber of the iwlustry, and does not deliver.
(k) ThiAi term watchman moan- an employee whose principal
function is watchlin, or uar ding the plremise.- or property of his
employer.
(1) The term i Codle Authority means the processed or refined
fish oil induitry control auithlrity created under Article VII hereof.
(m) The terin price term.i" means prices, discounts, rebates,
allowances, and all therer t-rm.s ,r conditions of -ale.

A:nTCLI: III-Hor-s OF LAIOr

SECTION 1. No eJlmloyee -hll 1, permitted to work in excess of
the normal houir.- stated below for the particular occupations speci-
fied, except as p1rovilded in Section 6 of this Article.
SECTION 2. 'Thie normal hour for chaiuffeurs, deliverymen, engi-
ne"r.s, and firemen shall be forty-eight. (4S) hours per week.
SECTIsN 3. The normal hours fior employees engaged in the dual
capacity of filremanl or engineer and watchman shall be forty-eight
(48) hours per week, and eight (S) hours per day provided, that
such employees are paid not. less than $30.00 per week.
The normal lhurs for employees eng.!agd solely as watchmen shall
be fifty-.ix (50) hours per week, eight (S) hours per da:y, and seven
(7) days per week.
SECTIONx 4. The normal hours for clerical, accounting and other
office employees .hall be forty (40) hours per week auid eight (8)
hours per day.
SECi( 'iN 5. The normal hours for all other employees shall be
thirty-six (36) hours per week and eight (8) hours per day.
S:cTION 6. In cases of peak productions, inventory periods,
financial closing periods., and unusual conditions beyond the control
of the employer, employees may work in excess of the normal num-
ber of working hours per day or per week provided in this code
for the class of work perfiormedl by such employees. Such overtime
shall not exceed six (6) hours in any week or eight (8) weeks in
any year, except in cases of emergency repair work involving break-
downs or protection of life and property, an(d shall be compensated
by at least time and one-third the normal rate. Office employees
receiving thirty-five dollars ($35.00) per week or over are not en-
titled to overtime payment. This Section shall not apply to em-
ployees engaged solely as watchmen, except in cases of emergency
repair work involving break-downs or protection of life and
property.









SECTION 7. No employer shall knowingly permit any employee to
work for any time which when totaled with that already performed
with another employer or employers in this industry (or otherwise)
exceeds the maximum permitted herein.
SECTION 8. No employee, except watchmen, shall be permitted to
work in excess of six (6) days in any seven (7).
SECTION 9. The provisions of this Article shall not apply to persons
employed as managers, executives, chemists or supervisor. who earn
thirty-five dollars ($35.00) per week or more, or to outside salesmen.

ARTICLE IV-WAGES

SECTION 1. No clerical, accounting, or other office employee shall be
paid at a rate less than sixteen dollars ($16.00) per week, except that
office boys and messengers may be employed at a rate not less than
fourteen dollars ($14.00) per week. Office boys and messengers shall
not exceed five per cent (5%) of all office employees, but at least one
office boy or messenger may be employed in each office.
SECTION 2. No watchman shall be paid at a rate less than eighteen
dollars ($18.00) per week.
SECTION 3. No other employee shall be paid at a rate less than
forty-five cents (450) per hour.
SECTION 4. This Article establishes a minimum rate of pay, regard-
less of whether an employee is compensated on a time-rate, piece-
work, or other basis.
SECTION 5. 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

SECTION 1. 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.
SECTION 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 as!i-ting a labor organi-
zation of his own choosing.
SECTION 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.
SECTION 4. No individual under sixteen (16) years of age shall be
employed in the industry, nor anyone under twenty-one (21) years
of age at operations or occupations hazardous in nature or detri-
mental to health. The Code Authority shall report a list of such
operations or occupations to the Administrator within thirty (30)
days after the effective date of this code.
SECTION 5. Within each State this code shall not supersede any
Federal laws or the laws of such State imposing more stringent
requirements on employers as to the age of employees, wages, hours
79023 -1044-45-34----2







46

of work, or health and general working conditions, or as to insurance
and fire protection than are imposed under this code.
SECTION 6. Employers shall not change the method of payment
of employees' compensation or reclassify employees or duties so as
to defeat the purposes of the Act or the provisions of this code.
SECTION 7. Whenever the adoption of the minimum rates of pay
of this code results in lessening the differential between unskilled
labor and skilled occupations, equitable readjustments in the wages
above the minimum shall be made, and in no case shall weekly wages
be reduced as a result of the adoption of this code. The Code
Authority shall make to the Administrator a report of all readjust-
ments made pursuant to this Section.
SECTION 8. Each employer shall post in conspicuous places full
copies of this code or of Articles III to V inclusive of this code, in
English or such other language as may be required, together with
the name and address of the Chairman of the Code Authority to
whom reports of alleged violations of the provisions of the code
may be addressed.
SECTION 9. Wages shall be exempt from fines; and from charges
and deductions, except charges and deductions for employees' vol-
untary contributions to insurance, pension or benefit funds, and
except as required by State legislation enacted for the benefit of
employees. Deductions for other purposes may be made only when
an agreement covering the same is reduced to writing and kept on
file by the employer for a period of six months open to the inspec-
tion of the Administrator. Wages shall be paid at. least twice a
month, in cash, or negotiable check payable on demand.
SECTION 10. Every employer shall provide for the safety and
health of employees during the hours and at the places of their
employment. Standards for safety and health shall be submitted
by the Code Authority to the Administrator within three (3) months
after the effective date of this code. Nothing in this section shall
be construed so as to add to the civil liability of the employer to
the employee.
ARTICLE VI-UNFAIR METHODS OF COMPETITION

SECTION 1. The following practices constitute unfair methods of
competition and it shall be a violation of this code for any member
of the industry:
(a) False Measures.--To use slack weights or slack measures, or
overweights or overmeasures, or to fail to observe any standard of
weight or of measure adopted by the Code Authority, with the
approval of the Administrator, as a standard of weight or measure.
(b) False Advertising.-To publish or disseminate in any manner
any false advertising of any product of the industry.
(c) Misbraanding.-To brand or mark or pack any product of the
industry in any manner which is intended to or does deceive pur-
chasers with respect to the brand, grade, quality, quantity, origin,
size, substance, character, nature, material content, or preparation of
such product.
(d) Secret Rebates.-To secretly pay or allow rebates, refunds, '
credits, or unearned discounts, whether in the form of money or



a..









otherwise; or to secretly extend to certain purchasers special services
or privileges, not extended to all purchasers under like terms and
conditions.
(e) Unearned Service Paym.entis.-To pay a trade buyer for a
special advertising or other distribution service by such buyer (1)
except in pursuance of a written contract made in good faith and
explicitly defining the service to be rendered and the payment for it;
and (2) unless such service is rendered and such payment is reason-
able and not excessive in amount; and (3) unless such contract is
separate and distinct from any sales contract, and such paynient is
separate and distinct from any sales price and is not designed or
used to reduce a sales price; and (4) unless such payment is equally
available for the same service to all competitive trade buyers in the
same competitive market; and (5) unless a copy of each such con-
tract is retained on file for a period of one year. In order to investi-
gate alleged violations of this paragraph, the Administrator may
require a member of the industry to report such contracts made by
him and/or to produce a copy thereof for inspection.
(f) Combination Sales.-To require that the purchase of any
product be prerequisite to the purchase of any other product.
(g) Comnmercial Bribery.-To 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 represented party, without the
knowledge of such employer, principal or party. This paragraph
shall not be construed to prohibit free and general distribution of
articles commonly used for advertising except so far as such articles
are actually used for commercial bribery as hereinabove defined.
(h) Free Deals.-To grant free deals, whether in the form of
money, money's worth, or service.
(i) False Stateents.-To render false invoices, statements of
account, orders, or acknowledgements; or to falsely report sales,
whether or not the accounting concerning such sales is accurate.
(j) Allowances for Claims.-To allow any claim or make an
adjustment of an invoice price without obtaining a statement from
the buyer certifying to the facts on which the claim is made and
without reporting forthwith to the Code Authority a full statement
of the details of the settlement.
(k) Guarantees against Price Declines.-To make a contract for
future delivery of products of the industry except on one of the
two following bases:
(1) On the filed price on the date of quotation or acceptance of
the contract; or
(2) On the filed price in effect on the date of shipment.
(1) Storage Charges.-To carry oil without having received pay-
ment therefore beyond the contract period without invoicing the
buyer at the rate of six percent (6%) per annum (for the excess
period of carriage) on the invoice price as compensation for storage
and delay in payment.
(m) Annual Sales Statemen.t.-To fail to furnish a statement of
the total annual sales to the accountants selected by the Code Au-









thority as provided for in Article VII, Title A, Section 3, paragraph
(a), hereof.
(n) Payment of Assessments.-To fail to pay the assessments for
code administration as provided for in Article VII, Title C, hereof.
(o) Disparagement of Competitors.-To disparage competitors
by falsely imputing to them dishonorable business conduct, inability
to perform contracts, questionable credit standing; or to falsely
represent the grade or quality of their products.
(p) Conmpliance with Standards and Specifications.-To fail to
apply the standards and specifications which may be established by
the Code Authority pursuant to the provisions in Article VII, Title
B, Section 1, paragraph (k), hereof.
(q) Filing Prices.-To fail to file with a confidential and dis-
interested agent of the Code Authority, or if none, then with such
an agent designated by the Administrator, identified lists of all of
his price terms, which lists shall completely and accurately conform
to and represent the individual pricing practices of the member
filing same. Said price terms shall in the first instance be filed
within fifteen days after the approval of this code. Price terms
and revised price terms shall become effective immediately upon
receipt thereof by said agent.
(r) Increased Prices.-To file a higher price within forty-eight
(48) hours after having filed a revision in price terms.
(s) Adherence to Filed Prices.-To sell or offer to sell any prod-
ucts of the industry except in accordance with such price terms
as filed in accordance with the provisions of Article VI, Section 1,
paragraph (q), hereof.
(t) Agreement on Prices.-To enter into any agreement, under-
standing, combination or conspiracy to fix or maintain price terms,
or cause or attempt to cause any member of the industry to change
his price terms by the use of intimidation, coercion, or any other
influence inconsistent with the maintenance of the free and open
market which it is the purpose of this Article to create.
(u) Destructive Price Cutting.-To engage wilfully in destruc-
tive price cutting. Any member of the industry or of any other
industry or the customers of either may at any time complain to the
Code Authority that any filed price constitutes unfair competition
as destructive price cutting, imperiling small enterprise or tending
toward monopoly or the impairment of code wages and working
conditions.
(v) Enmergency Basis for Prices.-To sell below the stated mini-
mum price for any given product when an emergency exists as to
any such product in accordance with the following provisions:
(1) If the Administrator, after investigation shall at any time
find both (a) that an emergency has arisen within the industry
adversely affecting small enterprises or wages or labor conditions,
or tending toward monopoly or other acute conditions which tend
to defeat the purpose of the Act; and (b) that the determination of
the stated minimum price for a specified product within the indus-
try for a limited period is necessary to mitigate the conditions con-
stituing such emergency and to effectuate the purposes of the Act,
the Code Authority may cause an impartial agency to investigate
costs and to recommend to the Administrator a determination of the


P1









stated minimum price of the product affected by the emergency and
thereupon the Administrator may proceed to determine such stated
minimum price;
(2) When the Administrator shall have determined such .tated
minimum price for a specified product for a stated period, which
price shall be reasonably calculated to initigato the conditions of such
emergency and to effectuate the purposes of the Act, he shall publish
such price. Thereafter, during such .stated period, no member of
the industry shall sell such specified products at a net realized price
below -aid stated minimum price and any such sale shall be deemed
destructive price cutting; and provided that
(3) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for pric'.. It is intended
that sound cost estimating methods should be used and that con-
sideration should be given to costs in the determination of pricing
policies.
(w) Cost Findinl.-To fail to utilize, to the extent found prac-
ticable, the co-lt finding and accounting methods promulgated pur-
suant to Article VII, Title B, Section 1, paragraph (r), hereof.
No member of the industry shall suggest uniform addit.ion-, per-
centages or differentialn or other uniform items of cost which are
designed to bring about arbitrary uniformity of costs or prices.

ARTICLE VJI--ADMI NISTRATION

TITLE A. ,COI)E AUTIIHOITY, SELECTION

SECTION 1. A Code Authority consisting of five (5) voting mem-
bers who are to be elected by the industry shall be e-t:a lishl d to
administer this code, and to effecluate in the industry the purposes
and policies of the Act. The Administrator may appoint from one
to three nonvoting members of the Code Authority as his repre.-tcita-
tives, for such periods respectively as he shall designate, to attend
all meetings of the Code Authority without expense to the industry.
The Code Authority shall be elected immediately upon the approval
of this code at a meeting which may be attended by all members. of
the industry, of which meeting due notice shall be given, and at
which each member of the industry shall be entitled to one vute
which may be cast in person, by proxy duly appointed, or by mail.
SECTION 2. The members of the Code Authority so chosen shall
continue in office until their successor., are duly elected and qualified.
SECTION 3. For the purposes of this Title, members of the industry
shall be classified into three groups in the following manner:
(a) Each member of the industry shall within sixty (60) days
after the effective date of this code and during the first ninety (90)
days of each year thereafter, beginning with January 1, 1935, report
to such accountants (certified, chartered, or other lawful practtiioners
of accountancy) as may be elected by the Code Authority the num-
her of tons of processed or refined fish oil sold by him in the preced-
ing year. Such reports shall be held by said accountants in strict
confidence except as to the Admiinistrator. On the receipt, of -uch
reports, or inimediately upon the expiration of the stated period,
said accountants shall determine from the reports received the aver-









age number of tons per member of such products sold during the
preceding year and shall then determine the members who are to be
classified in Group A, being such members who have, as shown by
their respective reports, sold during the preceding year one hundred
fifty percent (1501c ) or more of such average number of tons; said
accountants shall also determine the Group B members, being those
who have, according to their respective reports, sold during the pre-
ceding year more than seventy-five percent (75%) but less than one
hundred fifty percent (150%') of such average number of tons; and
said accountants shall al-o determine the Group C members, being
those who have, as shown by their respective reports, sold during
the preceding year seventy-five percent (75%T ) or less of such average
number of tons. The determination of such groups by said account-
ants shall be final and conclusive and no person shall have any right
to investigate or check such determination except the Administra-
tor, who may do so either on his own initiative or on the com-
plaint of any member of the industry claiming to be injured thereby.
SECTION 4. When and as said classifications have been made by said
accountants, they shall report to the members of the industry the
personnel of the several groups. Within thirty (30) days after the
making of each such report, a meeting of the members of the indus-
try shall be held and notice thereof shall be given by the Code
Authority specifying the time and place of each meeting. At such
meeting Group A members shall as a class, be entitled, to elect two
of the five (5) voting members of the Code Authority; Group B
shall be entitled, as a class, to elect one (1) of the voting members
of the Code Authority; and Group C members shall be entitled, as
a class, to elect the remaining voting member of the Code Authority.
The four members of the Code Authority so chosen shall select the
fifth voting member, who shall not be a member of the industry or
an employee, partner, or officer thereof. A voting member of the
Code Authority may. but need not, be associated with a member of
the industry, but no two (2) members of the Code Authority shall
be directly associated with the same member of the industry or any
of his subsidiaries or affiliates.
SECTION 5. If any vacancy shall occur in the membership of the
Code Authority by reason of rejection or disapproval of any member
by the Administrator, or by resignation or death, or for any other
reason, the remaining members of the Code Authority, except those
appointed by the Administrator, may, by a majority vote of their
number, appoint a member to the Code Authority for the unexpired
term, subject however to the approval of such appointment by the
Administrator. In filling such vacancies, the representation of the
respective groups; viz, A. B, and C, provided for in Section 4 of this
Article shall be maintained.
SECTION 6. The vote in person, by proxy, or by mail of a majority
of the members of the industry classified in any of said groups shall
be necessary for the election of the members of the Code Authority
to be chosen by that group.
SECTION 7. If the business of any two or more members of the in-
dustry is so combined, whether because of relationship as subsidiary,
affiliate or otherwise, as to constitute, in the opinion of the Code
Authority, one unified enterprise for practical purposes; then, such



AL*':i









members so combined shall have one vote at meetings of the imem-
bers of the industry and shall, in classifying such members into
Groups A, B, and C, be treated as though constituting one member
of the industry.
SECTION 8. Each trade or industrial ads(ciation directly or indi-
rectly participating in the selection or activities of the Code Author-
ity shall (1) impose no inequitable restrictions on im elleship, and.
(2) submit to the Adlninistrator true copies of its articles of as~oci.i-
tion, by-laws, regulations, and all amendments thereto as made, to-
gether with such other information as to nn uiibbrship, organization,
and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.
SECTION 9. In order that the Code Authority shall at all times
be t.ru'y representative of the industry and in other respects comply
with the provision. of the Act, the Admliniistrator may prescribe
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 complyy with the prtoviions of the Act, may require
an appropri'inte modifirtion in the method of selecttiin of the Code
Authority.
SECTION 1). Nothing contained in this co- ,l slihll constitute the
members of the Code Authority partners for any purpose. Nor
shall any mi.-mbner 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 Anthority. Nor shall any member of the Code Au-
thority, exercising reasonable diligence in the conduct of his duties
hereunder. beI liable to anyone for any action or omi--ion to act
under this cod,.. ex,.'pt for his own wilful malfta'sance or non-
feasance.
TITLE B. CODE AUT-tHORITY, POWERS AND DUTIES

SECTION 1 1. Th Code Authority shall be charged with the admin-
istration of the proviion-, of this code and shall have the following
powers and duties in addition to those nflth orized by other provi-
sion-. of this code, subject to such rules and regulations as may be
prescribed by the Adm~inistrator:
(a) To in.sur, the oblervance of the provisions of this coide, and
the compliance of the industry with the provi-ions of the Act. Any
charge of a specific alleged violation coming to the knowledge of a
member of the industry shall be submiitted to the Code Authority
in a written s.tatemlent, .pc;ifying such alleged violation and con-
taining substantiating evidence thereof. If the imeiiiLer submitting
such charge requests that his action in so doing be kept in confidence ,
the Cod, Authority shall make every effort to do so. provided that
such action on its part s all not hinder or ,obstruiict the ensuing
invest nation and the enforcement of this code against the member
charged.
(b) To investigate any charge aforesaid and any other specific
charges or information relating to violations of the code which shall
come to its knowledge from any source which it deems reliable. The
Code Authority may investigate such nmtter. by calling upon any
member of the industry, including the one whose actions are under









investigation; and may secure from any member of the industry a
statement with respect to any alleged violation.
(c) To receive complaints from any member of the industry or of
anv other industry or the customers of either at any time that any
filed price constitutes unfair competition as destructive price cutting,
imperiling -,mall enterprises or tending toward monopoly or the im-
panirment of code wages and working conditions.
(d) To adopt by-laws and rules and regulations for its procedure.
(e) To obtain from members of the industry such information and
reports as are required for the administration of this code. In addi-
tion to information required to be submitted to the Code Authority,
member, of the industry shall furnish such statistical information as
the Administrator may deem necessary for the purposes recited in
Section 3 (a) of the Act to such Administrative and, or government
agencies as the Administrator may designate: Provided however,
that nothing in this code shall relieve any member of the industry
(or any existing obligation to furnish reports to any government
agen-rc'c. No individual report. shall be disclosed to any other mem-
beL (if tlhe industry or any other party, except to such government
agencies ai nmy be directed by the Administrator.
f ) To use such other agencies as it deems proper for the carrying
out of any of its activities provided for herein; but nothing herein
shall relieve the Code Authority of its duties or responsibilities under
thi, co.de. and such agencies .hall at. all times be subject to and com-
ply with the provisions hereof.
tg) To make recommendations to the Administrator for the co-
ordination of the administration of this code with such other codes,
if any. a, may be related to or affect members of the industry.
(h) To cooperate with the Administrator in regulating the use of
any N.R.A. insignia solelv by those members of the industry who are
complyl)ing with this code.
(i) To recommend to the Administrator such changes and modi-
fications in this code as experience shall prove necessary and desirable.
(j) To establish, subject to the approval of the Administrator,
specifications and standards for the classification of various kinds of
proces-ed or refined fish oils into several grades.
(k) To require that each member of the industry, in selling or
promoting the sale of such oil, processed or refined by him, shall
classify the product in accordance with said specifications and stand-
ards when and as the Code Authority shall so establish same; and
.shall comply with the requirements set forth in paragraph (1) of this
Section and such other regulations as the Administrator may approve
in this connection.
(1) If any member of the industry shall have established or shall
(de-ire to establish a special trade name for any particular type or
grade of oil sold by him which has a peculiar quality or property,
distinct in any way from any of the established grades, he may
market, such oil under said special trade name or as a separate or
distinct grade. buit, in so doing, shall not make any unfounded or
misleading st'-tements or claims concerning the properties, charac-
teristics. or capabilities of such branded oil or special grade. Any
member of the industry who now markets or hereafter proposes to
market any such special type of oil shall report the fact to the Code









Authority, together with a statement of the peculiar properties
claimed therefore, and if the Code Authority shall find that such
special oil has no peculiar qualities or capabilities to distinguish it
from one of the standard grades established by the Code Authority,
such member shall not make any statements or claims to the contrary
and shall in filing the schedules required of him under paragraph
(q), Section 1 of Article VI, hereof, classify said oil in accordance
with the standard grade to which it belongs but may continue to sell
the oil under the trade name or brand.
(m) From and after the tiime that the Code Authority shall so
establish specifications or standard, for the classification of any kind
of refined or processed oil in the various grades and shall announce.
such classification, each member of the industry proposing to sell any
grade of such kind of oil shall include in the price terms at which
he proposes to sell any of the established grade.s. or any special grade,
or any grade bearing a special trade name a.i above provided at least
(1) the price at which each grade will be offered in the various unit
quantities, e.g., tank car, drum, ton, pound, carload lots, or less than
carload lot; (2) whether or not such price includes any transporta-
tion, handling or similar charge to be paid by the seller; (3) any
quantity or other di-count, which will be permitted from any of the
sales lpriceS set forth in said schedule, and the amount or extent
thereof: (4) the period or periods within which deliveries will be
made at .-uch prices; and (5) the terms of cr(iedit upon which the
various grades of oil will be sold. Such report shall bt made on such
forms as tie Code Authority may find necessary in order that there
may be a uniifornm nld comparable system of reporting in the
industry.
(1) lTo) dTeiginte a confidential and di:-interested a,.et, for the
purpose of carrying out the provisions of Article VI, S'ctinii 1, para-
gra)ph (q), hereof. Said agent shall receive price terms filed by
nmenmber.- of the indu.,try in acLordlalce with ArticlI VI, Section 1,
paragraph (q), hereof, and ininediately upon receipt tlier trf, said
agent sl:hll by telegraph or other cqually prompt means notify said
member of the time of such receipt. Such lists and revisions,
together with the effective time thereof, shall upon receipt be imme-
diately and simultaneously distributed to all members of the industry
and to all their customers who have applied therefore and have
offered to defray the co,.st actually incurred ,by the CodI Authority
in the preparatir.in and. distribution there'f and be availublb for
inspection by any of their custom-trs at the office of such agent. Said
lists or revision or any part, thereof shall not be mnade available to
any person until released to all members of the industry and their
customers, a as aforeaid ; provided, that prices filed in the fir-t instance
shall not be relea-.ed until the expiration of the fifteen (15) day
period after the approval of this code provided for in Article VI,
Section 1, paragraph (q), hereof.
(o) The Code Authority shall maintain a permanent file of all
price terms filed as herein provJided, and hall not destroy any part
of such records except upon written consent of the Administrator.
Upon request the Code Authority shall furnish to the Administrator
or any duly designated agent of the Admninistrator, copies of any
such lists or revisions of price terms.







54

(p) Upon receipt of a complaint under Article VI, Section 1, 2
paragraph (u), hereof, the Code Authority shall within five days
afford an opportunity to the member of the industry filing the price
(alleged to constitute destructive price cutting) to answer such coin-
plaint and shall within fourteen (14) days make a ruling or adjust-
ment thereon. If such ruling is not concurred in by either party
to the complaint, all papers shall be referred to the Research and
Planning Division of the N.R.A. which shall render a report and
recommendation thereon to the Administrator.
(q) To recommend from time to time the review or reconsidera-
tion of any determinations effected under Article VI, Section 1,
paragraph (v), subparagraph (2), hereof, or the Administrator may
cause the same to be reviewed or reconsidered and appropriate action
taken.
(r) To cause to be formulated methods of cost finding and ac-
counting capable of use by all members of the industry. When such
cost finding and accounting methods shall have been formulated
same shall be submitted to the Administrator for review. If ap-
proved by the Administrator, full information concerning such
methods shall be made available to all members of the industry.
Nothing herein contained shall be construed to permit the Code
Authority to suggest uniform additions, percentages or differentials
or other uniform items of cost which are designed to bring about
arbitrary uniformity of costs or of prices.
SECTION 2. If the Administrator shall at any time 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 require that such action be suspended to afford an opportunity
for investigation of the merits of such action and further considera-
tion by the Code Authority or such agency pending final action
which shall not be effective unless the Administrator approves or
unless he shall fail to disapprove after thirty (30) days' notice to
him of intention to proceed with such action in its original or
modified form.
TITLE C. EXPENSES
SECTION 1. The Code Authority shall, prior to the meeting of the
member- of the industry in each year, fix an estimate or budget of
its probable financial needs for the administration of this code for
the ensuing year, and shall submit the same to such meeting for
approval. Unless the budget is revised by such meeting (and it
shall have that power) the same as determined by the Code Au-
thority shall become effective immediately after its approval by the
Administrator. When the budget has been so determined and ap-
proved, the Code Authority shall empower the accountants selected
by the Code Authority under the provisions of Title A, Section 3,
paragraph (a) of this Article, to apportion the expenses therein set
forth among the members of the industry, using for this purpose the
ratio of the annual sales of each member of the industry to the total
sales of the industry for the preceding year; and after the basis of
contribution has been approved by the Administrator shall empower
them to collect the same. Such apportionment and collection of .
expenses among the members of the industry shall be held by such
accountants in strict confidence except as to the Administrator.









Such accountants may be subjected to adequate bond before assuming
any function under the provisions of this Tile.
SECTION 2. If the Code Authority shall at any time deem that ex-
traordinary expenses should be incurred by it in the performance of
its functions hereunder, it shall thereupon estimate the amount
thereof and submit the same to a meeting of the members of the in-
dustry for approval, revision or rejection. The notice of any such
meeting shall specify the plrpo)-e thereof, and the nature and amount
of the requested appropriation. If such meeting is so called and
shall, either for a lack of quorum or otherwise, fail to revise or re-
ject the request of the (ode Authority, the action of the Code Au-
thority .shall then he final and coniclusiv'e as to m1Inbhiers of the
industry. Such proposed extraordinary budget shall be subject to
the approval of the Administrator in any ev.nt. Assessments on the
members of the industry shall then be apportioned by said account-
ants on thmesame basis a.- sperified in Section 1 of this Title, and,
after the basis, of contribution has been approved by the Adminis-
trator, collected in like 1wainner..
SECTION 3. Any fiinils remaniinl" on hand, upon the termination
of this code or at the discretion of the Code Authority, -hill, after
the liabilities of the C-ode Authority have been paid, be 'pron.L"ti
and returned to, the memuber-s of the inldus-try by said accountants
in accordaince with such recognized principles of accountancy as will
allow due! consideration to their respective contributions to such
balance.
A RICLE.I V 111-AMONOPOLIES
SECTION 1. No provi.-sion of this code shall be so applied as to
permit mniuoplolie.s or monopolistic practices, or to eliminate, oppress,
or di-criminate against .small enterprises.

AlETICLE I X- iODIFICATION
SECTION 1. It is conteilllated that from time to time amendments
will be submitted for the approval of the President, to effectuate the
policies of the Act and to prevent unfair competition. After such
notice and hearings as the Administrator shall specify, and with
the approval of the President, the proposed amendments shall be-
come parts of this code.
SECTION 2. This code and all the provisions thereof are expre.-ly
made subject to the right of the President, in accordance with the
provisions of Section 10, suhbection (b) of the Act, from time to time
to cancel or modify any order, approval, license, rule, or regula-
tion issued under the Act; and specifically, but without limitation,
to the right of the Preident. to cancel or modify his approval of this
code or any conditions imposed by him upon his approval thereof.

ARTICLE X-EFFECTIVE DATE
SECTION 1. This code shall become effective on the second Monday
following its approval by the President.
Approved Code No. 500.
Registry No. 612-01.






UNIVERSITY OF FLORIDA


3 1262 08584 7571




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