.... .... .
i ..: ... .. .
. Approved Code No. 428
Registry No. 1637-11
LL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON MAY 14, 1934
UNIV. OF FL LIB.
GOVERNMENT PRINTING OFFICE
FP sale by tl: Saperintendent of Documents. Washington. D.C. - Price 5 centa
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
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 428
CODE OF FAIR COMPETITION
MECHANICAL PACKING INDUSTRY
As Approved on May 14, 1934
CODE OF FAIR COMPMTITON FOR THE MECHANICAL PACKING INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Indus-
trial Recovery Act, approved June 16, 1933, for approval of a
Code of Fair Competition for the Mechanical Packing Industry,
and hearings having been duly held thereon and the annexed re-
port 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 Recov-
ery, pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated Decem-
ber 30, 1933, and otherwise; do hereby incorporate by reference
said annexed report and do find that said code complies in all re-
spects 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 Industrial Recovery.
K. M. SIMPSON,
Division A administrator.
May 14, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: The original Code of Fair Competition for the Mechanical
Packing Industry was submitted d on August 31, 1933, by the Mechan-
ical Packing Association, an unincorporated membership society or-
ganized in 1933 representing the majority of the known members of
the industry and about 80 per cent in volume of production. Several
revisions of the code were made prior to the public hearing held
on April 2, 1934. The code was revised during the recess of this
hearing and is submitted in its final form for approval. Every
person who requested an appearance was properly heard in accord-
ance with statutory and regulatory requirements.
The Mechanical Packing Industry, as defined in this code under
terms of Industry and Industry Products, is engaged in the manufac-
ture and original sale of products or devices employed to create a
gaseous or liquid seal on moving or stationary mechanical parts.
The Industry Products (known to the trade as Mechanical Packing)
of this Industry do not include identical products as governed by
other Codes of Fair Competition heretofore or hereafter approved;
provided, the preponderant activities of such codes do not relate
to the manufacture and original sale of Mechanical Packing.
The Industry comprises about 85 members, employing in normal
times about 1500 employees. The Code is presented by the Mechan-
ical Packing Association who represent, as members, a majority of
the members of Industry by number, and approximately 80 per
cent of production by volume. For the entire Industry the estimated
invested capital and annual production capacity since 1928 are
rated at $8.500,000 and $25,000,000 respectively. It is estimated that
approximately 80 per cent of their output is utilized as replacements
and about 20 per cent represent new installation.
The number employed in this Industry declined successively
each year since 1929, when the average was 1,700, until the inaugu-
ration of the Recovery Program in 1933. The low point in employ-
ment occurred between November, 1932, and March, 1933, when the
average was 859, a decline of 49.5 per cent. Employment last
reported was in August, 1933, when the number of wage earners
had increased to 1,550-80.4 per cent above the low point, and only
8.8 per cent under the 1929 level. Much of this increase was due to
the fact that more than half the members of the Association (with 52
per cent of the employees) had signed the President's Reemploy-
ment Agreement at the time of reporting this increased number of
The maximum week of 40 hours as specified in the code is 13
per cent under the average worked in 1929. In August, 1933, more
than half of the members of Industry (with 52 per cent of em-
ployees) had signed the President's Reemployment Agreement, and
hours had been reduced to 42.9 per week. The 40 hour provision
of this code will further increase employment by about seven per
cent over the August, 1933, level.
The minimum of 40 cents for males and 35 cents for females
provided in this code will directly affect 26.8 per cent, and ap-
proximately 72 per cent of the male and female employees respec-
tively, and as a result of increased rates of pay, payrolls will be
increased 21.2 per cent over that of August, 1933. The percentage
of male and female employees is approximately 80 per cent and
20 percent respectively.
By the adoption of the 40 cent minimum rate, 26.8 per cent of
the male employees will enjoy an increased earning due to the fact
that this percentage of male employees was formerly paid less than
40 cents per hour. The minimum of 35 cents per hour for female
employees will affect approximately 72 per cent who were formerly
paid less than 35 cents per hour.
Article I: States the purpose of the code.
Article II: Accurately defines specific terms applicable to the
Mechanical Packing Industry as used in this code.
Article III: The maximum hours are limited to forty hours per
week. Watchmen shall be permitted to work 56 hours per week with
one day rest in every seven. No person employed in clerical or office
work shall be permitted to work in excess of forty hours in any one
week, except that for one week in any one month period such em-
ployee may be permitted to work a maximum of forty-eight hours.
Employees engaged in a managerial, executive, or supervisory capac-
ity who receive not less than Thirty-Five Dollars per week, or to
technical staffs (excluding highly skilled workers engaged in pro-
duction) or to outside salesmen, are not subject to any hourly limi-
tations. The maximum hours shall not apply in cases of emergen-
cies or repair where safety of life or health or protection of property
necessitates longer hours.
Article IV: No employee, except as otherwise specified, shall be
paid in any pay period less than at the rate of forty cents per hour,
except that for such light work as does not usually require the
strength and skill of male labor, and for which male labor is not
used, the minimum rate paid to female employees shall be at the rate
of thirty-five cents per hour. The minimum rates herein provided
shall be construed as hiring rates applying to totally unskilled or
common labor. .Other classes of labor shall be compensated at rates
above such minimum. The established minimum rate of pay for the
work performed in any pay period shall apply irrespective of
whether an employee is actually compensated on a time rate, piece
rate, or other basis. Provision is also made for the employing of
handicapped persons. No accounting, clerical, sales, or service em-
ployee in any office shall be paid less than at the rate of Fifteen
Dollars per week, except that office boys and girls and messengers
may be paid at a rate not less than 80% of the minimum paid office
Article V. No person under 18 years of age shall be employed in
the Industry except in clerical, office, sales, service, technical and
engineering departments, or as a messenger, and no person under 16
years of age shall be employed in any capacity. This Article also
sets forth the mandatory provision respecting the rights of employ-
ees to organize and bargain collectively.
Article VI: Establishes a Code Authority consisting of five voting
members, four of whom shall be elected by the members of the
Mechanical Packing Association and the other such member by the
Members of Industry who are not members of the Mechanical Pack-
ing Association. The selection of all members to the Code Authority
shall be by a fair and equitable method of election to be approved by
the Administrator. In addition to the organization of the Code
Authority, the powers and duties thereof are outlined in thisiArticle.
Article VII: Sets forth fair trade practices for the Industry.
Article VIII: This code and all the provisions thereof are
expressly made subject to the right of the President, in accordance
with the provisions of subsection (b) of Section 10 of the Act, from
time to time to cancel or modify any order, approval, license, rule or
regulation issued under Title I of said Act. Provision is made that
an amendment may be proposed by any interested party. Provision
is also made so that the Code Authority may make recommendations
for modifications of this code to the Administrator which shall be-
come effective as a part of this code upon approval by the Adminis-
trator after such notice and hearing as he may prescribe.
Article IX: No provision of this code shall be so applied as to per-
mit monopolies or monopolistic practices or to eliminate, oppress or
discriminate against small enterprises.
Article X: This code shall become effective ten days after its
approval by the Administrator.
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 com-
merce 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 adequate governmental sanctions and supervision, by elimi-
nating 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 and agricul-
tural 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 perti-
nent 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 association is an in-
dustrial association truly representative of the aforesaid Industry,
and that'said association imposes no inequitable restrictions on ad-
mission 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 code.
For these reasons, therefore, this code has been approved.
HuGH S. JOHNSON,
MAY 14, 1934.
CODE OF FAIR COMPETITION FOR THE MECHANICAL
To effectuate the policies of Title I of the National Industrial
Recovery Act, this Code is established as a Code of Fair Competition
for the Mechanical Packing Industry and its provisions shall be the
standards of fair competition for such Industry and are binding
upon every member thereof.
Wherever used in this Code or any supplement appertaining
thereto, the terms enumerated in this Article shall have the meanings
SECTION 1. The term President" means the President of the
United States of America.
SECTION 2. The term Act" means Title I of the National Indus-
trial Recovery Act.
SECTION 3. The term "Administrator" means the Administrator
for Industrial Recovery.
SECTION 4. The term Mechanical Packing Industry or Indus-
try as used herein includes the manufacture and the original sale
of industry products by a Member of Industry either by himself or
his agent, which includes without limitation any person or corpora-
tion occupying a subsidiary or controlling relationship, or one ot
common, mutual or joint ownership or control, to a Member of
SECTION 5. The term Industry Products" (known to the trade
as Mechanical Packing ") as used herein shall mean products, or
devices, employed to create a gaseous or liquid seal on moving or
stationary mechanical parts (these parts commonly include valve
stems, rods, plungers, pistons, and tubes, used in connection with
pumps, valves, compressors, engines, boilers, condensers, and other
mechanical equipment; also joined surfaces such as flanges or heads
used on boilers, piping, engines, or other vessels and containers).
(a) The term Industry Products for this Industry for the
purposes of this Code does not include identical products as governed
by other Codes of Fair Competition heretofore or hereafter ap-
proved; provided, the preponderant activities of such Codes do not
relate to the manufacture and original sale of "Mechanical
SECTION 6. The term Member of Industry includes, but with-
out limitation, 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.
SECTIoN 7. The term "Employee" means and includes anyone
engaged in the Industry in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of such
compensation, except a Member of Industry.
SECTION 8. The term Employer means and includes anyone by
whom any such employee is employed or compensated.
SECTION 9. The term "Association shall mean the Mechanical
Packing Association, an unincorporated membership society organ-
ized July 1933, having its principal office in New York City.
SECTION 10. The term Secretary as used herein shall mean the
Secretary of the Mechanical Packing Association, who shall also b3
the Secretary of the Code Authority.
ARTICLE III-HOURS OF LABOR
SECTION 1. No employee shall be permitted to work in excess of
forty (40) hours in any one (1) week or eight (8) hours in any
twenty-four (24) hour period, except as herein otherwise provided.
A normal work day shall not exceed eight (8) hours.
HOURS FOR CLERICAL AND OFFICE EMPLOYEES
SECTION 2. No person employed in clerical or office work shall be
permitted to work in excess of forty (40) hours in any one week,
except that for one (1) week in any one (1) month period such em-
ployee may be permitted to work a maximum of forty-eight (48)
hours. A normal work day shall not exceed eight (8) hours.
EXCEPTIONS AS TO HOURS
SECTION 3. The maximum hours fixed in Section 1 of this Article,
and the provisions of Section 8 of this Article, shall not apply to
employees engaged in emergency maintenance or emergency repair
work, involving breakdown or protection of life or property; pro-
vided, that in such special cases not less than one and one-half (11/j)
times the normal wage rate for any employee so employed shall be
paid for all hours worked in excess of forty (40) hours per week, or
eight (8) hours per day.
SECTION 4. The maximum hours fixed in this Article, and the
provisions of Section 8 of this Article shall not apply to persons
engaged in a managerial, executive, or supervisory capacity who
receive not less than Thirty-Five Dollars ($35.00) per week; or to
technical staffs (excluding highly skilled workers engaged in pro-
duction); or to outside salesmen.
SECTION 5. The maximum hours fixed in Section 1 of this Article
III shall not apply to watchmen, who may be permitted to work
not more than fifty-six (56) hours per week; provided, that such
employees shall have at least one (1) day's rest in each seven (7)
SECrro 6. There may be a tolerance of 10% additional hours
over the maximum hours in any week, or the normal work day, for
6902r----44----- 4 ----2
employees engaged in the preparation, care and maintenance of
machinery and production facilities, firemen, engineers, stock and
shipping employees and truckmen; provided, however, that at least
one and one-half (11 ) times the normal wage rate for any
employee so employed shall be paid for all hours worked in excess
of eight (8) hours per day or forty (40) hours per week.
SECTION 7. During any period in which a concentrated demand
upon any division of the Industry shall place an unusual and tem-
porary Gurden for production work upon its facilities, or to meet
seasonal or peak requirements, or production emergencies, an
employee may be permitted to work not more than forty-eight
(4S) hours per week in not more than six (6) weeks in the first six
(6) months of a calendar year, and for not more than six (6) weeks
in the last Hix (0) months of a calendar year; provided, that in
suiic -qpecial cases at lean.t one and one-half (11.) times the normal
waige rate shall be paid to any employee so employed for hours
worked in excess of forty (40) hours in any one (1) week, or eight
(8) hours in any one (1) day.
SECTION 8. No employee he slall be permitted to work more than
six (6) days in any seven (7) day period.
EMPLOYMENT RY SEVERAL EMI LOYERS
SECTION 9. No employer shall knowingly permit any employee to
work at any time, which, when totalled with that already performed
with another employer or employers in this Industry or other
Industries, exceeds the mniximum permitted herein.
SECTION 1. No empiovee, except cI herein (therwise specified, shall
be paid in any pay period less than at the rate of forty cents (400)
per hour, ex ept tmht for suc'h light work as does not usually,require
the strength and skill of male labor, and for which male labor is not
used, the minimum rate paid to female employees shall be at the rate
of thirty-five cents (325) per hour. The minimum rates herein
provided shall be construed as hiring rates applying to totally
unskilled or common labor. Other classes of labor shall, be com-
pensated at rates above such minimum. Wages which were in effect
prior to date of approval of this Code, which were above the mini-
mum, shall in no case he reduced.
CLERICAL AND OFFICE EMPLOYEES
SECTION 2. No accounting, clerical, sales, or service employee in
any office shall be paid less than at the rate of Fifteen, D6llars
($15.00) per week of forty (40) hours; provided, howe-er,'that
office boy's and girls and messengers may be paid a't a rate riot less
than 80% of the minimum hereinabove specified; and provided
further, that the number of such boys and girls and messengers so
paid shall constitute not more than 5% of the total number of such
employees of any office of any one employer, but in any case each
employer shall be entitled to at least two (2) such employees.
(a) No employees in this class in regular employment ,shall have
their compensation reduced on account of any reduction in weekly
hours of employment made because of the requirements of Article
(b) Part time employees shall be paid an hourly rate which shall
not be le-s than the pro rata amount of the weekly wages specified in
Section 1 of this Article IV.
PIECEWOCRK COMIPENSATION-MIN IMUM WAGES
SECTI.:N 8. This Article establishes a minimum rate of pay for any
pay period which shall apply, irrespective of whether an employee
is actually compensated on a time rate, piecework, or other basis.
SECTION 4. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
employees, and when they displace male employees they shall receive
the same rate of pay as the men they displace. The Code Authority
shall, within ninety (90) days after the effective date of this Code,
file with the Administrator a description of all occupations in the
Industry in which both men and women are employed.
WAGES ABOVE THE MINIMUM
SECTION 5. Equitable adjustments in all pay schedules of employ-
ees shall be made within thirty (30) days after the effective date of
this Code by any employer who has not heretofore made such adjust-
ments under the National Industrial Recovery Act. In no event,
however, shall wage rates be reduced. Within sixty (60) days after
the effective date of this Code each Member of the Industry shall
make. a report of such adjustment whether made prior to or subse-
quent to date of approval of this Code to the Code Autlority.
SECTIO.N 6. A person whose earning capacity is limited because of
age, physical or mental handicap, or other infirmity, may be em-
plgyed' oh light Work at a wage below the minimum established by
thiC C6de, ifthe einployer obtains from the State Authority, desig-
nated by the United States Department of Labor, a certificate
authorizing such person's employment at snch wages and for such
hours as shall be stated in the certificate. Such authority shall be
guided by the instructions of'the Uiited'Stdtte Department 'of Labor
in issuinig certificates to such persons.' Each employetrshall file'
fodnthly with the Code Authority a list of all such persons employed
by14-hinn showing tlh6 Wages pid to, and thelhiaiinum hours of work
for such employee. *) : -l :
PAYMENT OF WAGES
SECTION 7. An employer shall make payment of all wages in law-
ful currency or by negotiable check therefore, payable on demand.
These wages shall be exempt from deductions for any payments
other than those voluntarily ordered paid by the wage earners, or
required by state laws. Pay periods shall be at least semimonthly,
and for salaries at least once per month. Employers shall not with-
hold wages, except as otherwise provided by law.
ARTICLE V--GENERAL L.\nR PROVISIONS
SECTION 1. No pejiion under 18 years of age shall be employed
in the lMeeianlical Packing I1ndustry except in clerical, office, sales,
service, technical and engineering departments, or as messengers,
and no person under 16 years of age shall be employed in any ca-
pacity. In any state an employer shall be deemed to have complied
with thi provision aw to age of employees if he shall have on file
a certificate or permit duly signedd by the authority of such state
empowere:Id to i--lue employment or age certificates or permits show-
ing that the employee is of the required age.
PROVISIIONS OF THE ACT
SECTION 2. (a) 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 em-
ployers of labor, or their agents, in the designation of such represen-
tatives or in self-organization, or in other concerted activities for the
purpose of collective bargaining or other mutual aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing. and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment ap-
proved or prescribed by the President.
RECLASSIFICATION OF EMPLOYEES
SECTION 3. No employer shall reclassify employees or duties of
occupations performed, or engage in any other subterfuge for the
purpose of defeating the purposes or provisions of the Act or of this
STANDARDS FOR SAFETY AND HEALTH
SECTION 4. Every employer shall provide for the safety and
health of employees during the hours and at the places of their em-
ployment. Standards for Safety and Health shall be submitted!by
.the Code Authority to the Administrator within six months after
the effective date of this Code.
SECTION 5. No provision in this Code shall supersede any state
or federal law which imposes on employers more stringent require-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general working conditions, or insurance, or fire
protection, than are imposed by this Code.
SECTION 6. All employers shall post and keep posted complete
copies of this Code and all amendments thereto in conspicuous
places accessible to employees, and shall comply with all rules and
regulations relative to posting which may from time to time be
prescribed by the Administrator.
ARTICLE VI-ORGANIZATION, POWERS AND DUTIES OF THE CODE
ORGANIZATION AND CONSTITUTION
SECTION 1. A Code Authority to administer this Code is hereby
constituted consisting of five (5) voting members. Four (4) of such
voting members shall be elected by the members of the Mechanical
Packing Association and the other such voting member shall be
elected by the Members of Industry who are not members of the
Mechanical Packing Association. The Secretary of the Mechanical
Packing Association shall be the Secretary and a non-voting member
of the Code Authority. The selection of all members to the Code
Authority shall be by a fair and equitable method of election to
be approved by the Administrator. In the event that the selection
of the non-member of the Mechanical Packing Association is not
made within thirty (30) days after the effective date of this Code,
such member may be selected by the Administrator.
SECTION 2. In addition to the above membership there may be
one and not more than three (3) additional members, without vote
and without compensation by the Industry, to be appointed by
the Administrator to serve for such terms as he may specify.
. SECTION 3. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Au-
(1) Impose no inequitable restrictions on membership, and
(2) Submit to the Administrator true copies of its Articles of
Association, By-Laws, Rules and Regulations and any amendments
when made thereto, together with such other information as to
membership, organization and activities as the Administrator may
deem necessary to effectuate the purposes of the Act.
SECTION 4. In order that the Code Authority shall at all times
be truly representative of the Industry and in other respects com-
ply with the provisions of the Act, the Administrator may pre-
scribe. such hearings as he may deem proper; 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, he may
require an appropriate modification in the method of selection of
the Code Authority.
SECTION 5. Members of Industry shall be entitled to participate
in and share the benefits of the activities of the Code Authority
and to participate in the selection of the members thereof by as-
senting to and complying with the requirements of this Code and
sustaining their reasonable share of the expenses of its adminis-
tration. Such reasonable share, of expenses of administration shall
be determined by the Code Authority, subject to review and ap-
proval by the Administrator, on the basis of volume of business
and/or such other factors as may be deemed equitable. The non
payment of such equitable assessment shall be a violation of the
SECTION 6. 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 em-
ployee 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 act or omission to act
under this Code, except for his own wilful misfeasance or non-
POWERS AND DUTIES
SECTION 7. Subject to such rules and regulations as may be issued
by the Administrator, the Code Authority shall have the following
further powers and duties, the exercise of which shall be reported
to the Administrator and shall be subject to his right, on review,
to disapprove any action taken by the Code Authority. If the
Administrator shall determine at any time 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 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 dis-
approve after thirty days' notice to him of intention to proceed with
such action in its original or modified form.
(a) To make investigations as to the functioning and observance
of any provisions of this Code at its own instance or upon com-
plaint of any person affected and to report the result thereof to the
(b) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisions of
the Act. To receive complaints of violations of this Code and
disputes arising thereunder, make investigations thereof, provide
hearings thereon, adjust such complaints and make such decisions
as are necessary thereon and to bring violations of this Code to the
attention of the Administrator for prosecution, recommendation and
other action, subject to such rules and regulations as the Adminis-
trator may prescribe.
(c) To adopt By-Laws, Rules and Regulations for its procedure
and for the administration of this Code. The Code Authority shall
promptly furnish to-the Administrator true copies of the By-Laws,
Rules and Regulations adopted pursuant to this paragraph.
(d) To obtain from Members of the Industry through a confiden-
tial agency such statistical information and reports as are required
for the administration of this Code and to provide for submission
by members of Industry of such statistical information and reports
as the Administrator may deem necessary for the purposes recited
in Section 3 (a) of the Act, which information and reports shall be
submitted by Members of Industry to such Federal or State agencies
as theiAdministrator may designate; provided, that nothing in this
Code shall relieve any Member of Industry of any existing obliga-
tions to furnish reports to any government agency. No individual
reports submitted to the Administrator and/or such government
agencies as the Administrator may designate shall be disclosed to any
other Member of Industry or any other party except to such govern-
ment agencies as may be directed by the Administrator. To this end
the Secretary of the Mechanical Packing Association is designated
the agent of the Code Authority for the collection and compilation
of statistical data, reports, and information from Members of In-
(e) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code and that such trade
associations and agencies shall at all times be subject to and comply
with the provisions hereof.
(f) To make recommendations to the Administrator for the coor-
dination of the administration of this code with such other codes, if
any, as may be related to or affect the Members of Industry.
(g) To cooperate with the Administrator in regulating the use of
any N.R.A. insignia solely by those Members of Industry who have
assented to, and are complying with, this Code.
(h) To recommend to the Administrator further fair trade prac-
tice provisions to govern Members of Industry in their relations with
each other or with other Industries, and to recommend to the Admin-
istrator measures for industrial planning, including stabilization of
(i) To secure from. Members of Industry an equitable and pro-
portionate payment of the reasonable expenses of maintaining the
Code Authority and its activities, and to this end the Code Author-
ity has the right to establish a label which shall be sold only to those
Members of Industry who assent to this Code.
(j) To make studies with a view to the establishing of classifica-
tions and standards of quality for products of the Industry in coop
eration with some federal agency, preferably the Bureau of Stand-
ards of the United States Department of Commerce.
ARrTICL VII-MARKETING AND TRADE PRACTICE RULES
TRADE PRACTICE RULES
SECTION 1. The following trade practices are declared to consti-
tute unfair methods of competition between Members of Industry
and no Member of Industry shall use or engage in any of:them,
either directly or indirectly, through any officer, agent or employee.
Engaging in any one or more of these provisions, or any further
trade provisions, which hereafter may be established upon recom-
mendation by the Code Authority, and approved by the Administra-
tor, after such notice and hearings as he may prescribe, shall be
deemed a violation of this Code.
SECTION 2. No Member of Industry shall knowingly publish adver-
tising (whether printed, radio, display, or of any other nature)
which is misleading or inaccurate in any material particular, nor
shall any member in any way misrepresent any goods or products
of Industry (including, but without limitation, its use, trade-mark,
grade, quality, quantity, weight, origin, size, substance, character,
nature, finish, material, content, or preparation) or make any mis-
representation as to credit terms, values, policies, services, or the
nature or form of the business conducted.
SECTION 3. The imitation or copying of written or oral forms of
trade-marks, trade names, or slogans used by a competitor.
SECTION 4. No Member of Industry shall knowingly withhold
from or insert in any quotation or invoice any statement that makes
it inaccurate in any material particular.
SECTION 5. To ship or in any way deliver free goods of any
kind to any customer, for customer's own use or for resale by the cus-
tomer, except that a Member of Industry may furnish to a customer
without charge a limited amount of material or product strictly for
test application and determination as to its serviceability.
SECTION 6. To guarantee the serviceability of any product for any
period of time, or sell on an approval basis. Any warranty shall be
limited to a guarantee against defects in materials or workmanship,
and obligations under such warranty shall be limited to the replace-
ment of defective materials.
SECTION 1. TO subsidize buyers by special donations or by paying
or assuming any part of their expenses or losses which are not ex-
tended alike to all buyers.
SECTION 8. Enticing away an employee or employees of competi-
tors with the intent of unduly hampering, injuring, or embarrassing
a competitor or competitors in the conduct of their business; pro-
vided, however, that nothing in this paragraph shall prevent an em-
ployee from offering his services to a Member of Industry, nor pre-
vent a Member of Industry from employing the employee of another
Member of Industry, where the initiative in such change is taken by
SECTION 9. To purchase from a customer or prospective customer
as a consideration of a sale, any commodity at higher than prevailing
open market prices, or repurchase at greater than customer's replace-
ment cost any product of a Member of Industry's own manufacture.
SECTION 10. To acquire, by purchase or exchange, the industry
products of another Member of Industry from any customer or pros-
pective customer for the purpose of influencing the sale of merchan-
dise to such customer.
SECTION 11. To subnormally price any other product or prod-
ucts of a Member of Industry for the purpose of influencing the sale
of industry products of this Industry.
SECITON 12.. To permit s!aesmen to split or share their commis-
sions pr other compensations with any customer or customer's agent.
SE6TION 13. To' make excessive allowance for alleged shortages,
or excessive adjustment of complaints.
SECTION 14. 'T extendl abnormal sales service assistance or unu-
sual volume of credit.in order to thereby influence sales, and to
fail to charge interest at six (6) per cent on customers' notes cov-
ering past due accounts.
SECTION 15. To ship goods on consignment except where pecul-
iar circumstances of the Industry require the practice. Such ex-
ceptions shall be defined by the Code Authority with the approval
of the Administrator and shall apply alike to all Members of
SECTION 16. To make excessive expenditures for entertainment
of a customer or prospective customer or their employees, or give
any gratuity or make any loan, or otherwise improperly influence
SECTION 17. TO make any contract with any purchaser whereby
the purchaser is to be protected against a decline in price.
SECTION 18. 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 rela-
tion to the business of the employer of such employee, the principal
of such agent or the represented party. This commercial bribery
provision shall not be construed to prohibit free and general dis-
tribution of articles commonly used for advertising except so far
as such articles are actually used for commercial bribery as herein-
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule or regula-
tion issued under Title I of said Act.
SECTION 2. Such provisions of this Code as are not required to be
included therein by the Act may, with the approval of the Adminis-
trator, be amended as provided in Section 3 of this Article VIII
hereof, in such manner as may be indicated by the needs of the public,
by changes in circumstances, or by experience. All of the provisions
of this Code, unless so modified or eliminated, shall remain in effect
until June 16, 1935.
SECTION 3. An amendment may be proposed by any interested
party, either to the Code Authority or directly by or to the Admin-
istrator. All proposed amendments shall be referred to the Code
Authority, who shall give Members of Industry an opportunity to
be heard thereon; and thereafter, the Code Authority may make
such recommendations thereon as is deemed proper; provided, how-
ever, that when approved by the Administrator, as necessary to
effectuate the policies of the Act, after such notice and hearing as he
may prescribe, any proposed amendment shall thereupon become
effective as a part of this Code.
SECTION 4. The Code Authority may make recommendations for
modification of this Code to the Administrator which shall become
effective as a part of this Code upon approval by the Administrator
after such notice and hearing as he may prescribe.
No provision of this Code shall be so applied as to promote
monopolies or monopolistic practices, or to eliminate, oppress, or
discriminate against small enterprises.
ARTICLE X-EFFECTIVE DATE
This Code shall become effective ten (10) days after its approval
by the Administrator.
Approved Code No. 428.
Registry No. 1637-11.
UNIVERSITY OF FLORIDA
3 1262 08584 7779