NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
AS SUBMITTED ON SEPTEMBER 6, 1933
UNIV. OF FL LII. DO OUR PART
The Code fWr the Periodical Publishing Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained, therein are
to be regarded as having received the approvalof
the National Recovery Administrotion
as applying to this industry
GOVERNMENT PRINTING OFFI' '
WASHINGTON : 1933
the Superintendent of Documents, Washington, D.C. - Price 5 rents
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PERIODICAL PUBLISHERS INSTITUTE
CODE OF FAIR PRACTICES FOR THE PERIODICAL
The "Institute" as referred to herein shall mean the Periodical
The term "periodical publishing industry as used herein is de-
fined to mean the publishers of periodicals (except daily and weekly
newspapers) issued at regular intervals but not less frequently than
four times per year and from which the publisher derives circulation
and/or advertising revenue.
The term "publishers" as used herein shall include individuals,
partnerships, associations, and corporations which actually issue
To make effective the policy of Title I of the National Industrial
Recovery Act during the period of the emergency, by reducing and
relieving unemployment, by promoting the welfare of the industry,
by eliminating competitive practices destructive of the interests of
the public and of the industry, by improving the standards of em-
ployment, and otherwise rehabilitating the periodical publishing in-
dustry; and by increasing the consumption of industrial and agri-
cultural products both directly and by increasing the purchasing
power, and in other respects, the following provisions are established
as a Code of Fair Practices for the Periodical Publishing Industry.
The Institute has adopted articles of organization and bylaws, a
copy of which is attached, marked "Appendix A."
* The Institute will keep on file with the National Recovery Admin-
istration any changes in the Bylaws that may be made from time to
Membership within the Institute is open to any publisher who
subscribes to this Code and to any subsequent modifications thereof
or additions thereto and who accepts his share of the cost and re-
sponsibility as well as the benefits of its provisions.
This Code, and any agreement made thereunder, or any license ap-
proved, prescribed, or connected therewith, is subject'to cancellation
or modification by the President of the United States, in accordance
with the provisions of Section 10 (b) of The Act; however, the pub-
lishers do not waive any constitutional rights or consent to the im-
position of any requirements that might restrict or interfere with the
constitutional guarantee of the freedom of the press. Subject to the
approval of the President the Code may be amended by a majority
vote of two thirds of the voting membership as defined in Section 6
of Article IV of the Articles of Organization and Bylaws.
I. EMPLOYMENT REGULATIONS
The periodical publishing industry, as required by Section 7 (a)
of Title I, of the National Industrial Recovery Act, subscribes to the
following provisions which 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."
Employers likewise can make collective bargains with organized
employees, or individual agreements with those who choose to act
individually; provided, that no such collective or individual agree-
ment is in violation of any state or Federal law. But neither em-
ployers or employees are required to agree to any particular contract,
whether proposed as an individual or collective agreement.
Nothing in this Code is to prevent. the selection, retention, and ad-
vancement of employees on the basis of their individual merit, with-
out regard to their affiliation or nonaffiliation with any organization.
Publishers will not employ any person under sixteen years of age,
except that male persons between fourteen and sixteen may be em-
ployed for not to exceed three hours per day and those hours be-
tween seven A.M. and seven P.M. in such work as will not interfere
with hours of day school.
For the purposes of this Code sales persons working on a commis-
sion basis shall not be considered as employees.
A. WORKING HOURS
The personnel of the periodical publishing industry is made up of
two divisions: (1) a creative group, consisting of editors, business
executives, artists, and sales people; and (2) clerks, printing crafts-
men, and laborers.
To effectuate the policy of this Code, maximum working hours
shall be uniform over the whole country. Standard working hours
shall be 40 hours per week; but editors, business executives, and sales
people receiving not less than $35.00 per week shall not be limited
by this requirement. These standard working hours shall not apply
to employees engaged in maintenance of plant and machinery.
It is not the intention of this provision to limit the number of cays,
hours per day, or shifts that any publisher may operate. In case
of necessity, arising from an emergency or the character of the work,
or from the inability to obtain competent labor, permission is granted
to exceed the foregoing limitation, providing such permission shall
be granted only upon the condition that no employee shall work more
than 200 hours in any five weeks' period and not more than 48 hours
in any pay-roll week; overtime shall be paid at not less than time and
one third, to begin after eight hours in any one day.
There shall be a standard minimum wage for employees in the
periodical publishing industry that shall be uniform throughout the
entire country. These wages shall be: for men, 40 cents per hour; for
women engaged in manufacturing operations, 35 cents per hour; for
women in other work and for junior male help between the ages of
sixteen and twenty-one years, 321 cents per hour, except that ap-
prentices and learners without previous experience may be paid not
less than 80 percent of the above schedule during the first three
months of their employment.
It is agreed where the stated hours to be worked under this Code
are less than those that were in effect on July 1, 1933, that employees
being paid a wage in excess of the minimum and not at a rate over
75 cents an hour shall receive a fair upward adjustment of their wage
over the rates in effect on July 1, 1933; and within four months
after this date the Institute will collect information from its mem-
bers relative to the actual effect of these adjustments and send same
to the National Recovery Administration.
Where both men and women employees are engaged upon work
of the same nature, it is agreed that there shall be no discrimination
against women because of their sex.
II. TRADE PRACTICE RULES
To accomplish the purposes of the National Recovery Administra-
tion, the industry through this Code must restrain certain practices
which have developed in the publishing field and which are harm-
ful to the public, to publishers, and to advertisers. All harmful
practices work to defeat the purposes of the Recovery Act.
A. RESPONSIBILITIES TO PURCHASERS OF THE PERIODICAL
1. Misleading or deceiving customers with respect to the service
to be rendered by the publisher shall be a violation of this Code.
2. Editorial independence by each member of this Institute must
be inviolate and any deviation shall be considered an infraction of
3. The industry shall establish definite regulations designed to
prevent the publication of misleading and/or untruthful advertis-
ing and thus will protect the public. Disregarding these regulations
shall be a violation of this Code.
B. RESPONSIBILITIES TO ADVERTISERS
1. Circulation Practices.-The circulation records of every pub-
lisher shall be open for inspection by advertisers or advertising
agents or by the United States Post Office Department and all reason-
able auditable information which they request shall be furnished.
Failure to comply with the requirements of this paragraph shall
constitute a violation of this Code.
2. Advertising Rates.-It. is a requirement of this Code that pub-
lishers must file with the Secretary of the Institute a complete sched-
ule of all advertising rates. Failure to do so shall constitute a
violation of this Code.
3. Maintenance of Rates.-It is understood that publishers shall
make no deviation from their published rate schedules on file with
the Secretary of the Institute either in the form of money or other-
wise, or secretly extend to certain advertisers special privileges not
extended to all advertisers under like terms or conditions. Where
terms provide for time or space discounts and they are not actually
earned, settlement must be made on short term basis. Any deviation
shall constitute a. violation of this Code.
4. Records.-Failure to maintain records or wilfully maintaining
or issuing an inaccurate or false record of circulation or of advertis-
ing shall constitute a violation of this Code.
It will not be required that full circulation records be maintained
by publications where the advertising content does not exceed 5 per-
cent of the total space.
WhIere, however, the cost of fulfilling term and.'or space agree-
ments for advertising entered into prior to July 1, 1933, are unduly
increased by the acceptance of this Code and the codes of allied
industries under the National Industrial Recovery Act, it is equitable
and promotive of the purposes of the Act that proper adjustments
of such agreements be made by mutual consent between the parties
thereto, or by arbitration, and the Executive Committee of the Insti-
tute will assist in effecting such adjustments. "
5. Defamation of Com petitors.-The defamation of competitors
by falsely imputing to them dishonorable conduct, inability to per-
form contracts, questionable credit standing, or by other false state-
ments or representations, or by false disparagement of the grade or
quality of their product, with the purpose of misleading or deceiving
purchasers or of injuriously affecting the business of such competi-
tors, shall constitute a violation of this Code.
III. MAINTENANCE OF THE EFFECTIVENESS OF THE CODE
The Periodical Publishers Institute shall maintain an organization
to investigate reported violations of the Code and to attempt to
correct such violations by conference. Upon specific charges of viola-
tions of this Code and written notice thereof to the party accused,
all relevant records of the publications involved shall be open for
inspection to duly accredited representatives of the Executive Com-
mittee. If such methods are ineffective, the Institute will report
such violations to the Attorney General of the United States for ac-
tion as provided in Section 3 (c) of the National Industrial Recovery
Upon request of the National Recovery Administration to the
Periodical Publishers Institute, all records of individual members
pertinent to maintaining and effectuating the policies of this Code
shall be open to the inspection of representatives of the National
Recovery Administration who are duly accredited.
ARTICLES OF ORGANIZATION AND BY-LAWS
SECTION 1. Nnme.-The name of this Institute shall be Periodical Publishers
SEC. 2. Purposes.-The purposes of the Institute shall be to establish and
maintain such trade standards and practices as may be necessary for the gen-
eral welfare of the industry in compliance with the requirements of the
National Industrial Recovery Act. The Institute shall not be conducted for
profit and shall have no transferable shares or memberships.
ARTICLE IT-PLACE OF BUSINESS
SECTION I. The principal office and place of business of the Institute shall be
in the Borough of Manhattan, City of New York, State of New York.
SECTION 1. Membership in this Institute shall consist of individuals, partner-
ships, associations, or corporations which actually issue periodical publications
(except daily and weekly newspapers) at regular intervals but not less fre-
quently than four times per year who subscribe to the Code of the Periodical
Publishers Institute and to any subsequent modifications thereof or additions
thereto; who accept a proper share of the costs and responsibilities as
well as the benefits of its provisions: and who subscribe to these Articles of
Organization and By-Laws.
Membership shall include all periodicals published by the member from
which the member derives circulation and/or advertising revenue.
The field of periodical publications is naturally divided into four general
groups, as follows:
(1) agricultural publications,
(2) business publications,
(3) general publications,
(4) religious, fraternal, scientific, educational, and other publications.
Each publisher may determine to which group or groups his publication or
publications belong. When such designation is once chosen by a publisher,
it can be changed only upon approval by the Board of Directors.
SEC. 2. Withdrawal of Memnbership.-Any member may withdraw his mem-
bership by filing with the Secretary of the Institute his resignation and paying
all past dues and allocation of expenses.
SEC. 3. Membership in the Institute shall not terminate or prohibit mem-
bership in any other association now existing or hereafter formed between
members of the Institute or any of them, or debar any Director, Officer, or
employee of the Institute being at the same time a Director, Officer or employee
of one or more such firms or associations.
SEc. 4. The Institute shall publish as often as directed by the Board of
Directors a complete list of members in good standing.
ARTICLE IV-MEETING OF MEMBERS
SEcTION 1. Annual Meetings.-There shall be an annual meeting of the mem-
bers of the Institute at such place and time as shall be designated by the
Board of Directors. Notice of such meeting shall be sent to all members as
Smo. 2. Special Meetings.-Special meetings shall be called by the Executive
Committee upon the order of the Board of Directors or whenever a request in
writing therefore shall be received by the Secretary bearing the signature of
at least twenty-five members. No business shall be transacted at a special
meeting except as may be embraced in the call therefore.
SEC. 3. Notice of Meeting.-The Secretary shall give notice of all meetings
by mailing to each member a written or printed notice stating the time and
place of meeting, and if a special meeting, the business to be transacted. Such
notices shall be mailed not less than twenty days before annual meetings and
mailed or telegraphed not less than five days before special meetings.
SEC. 4. Quorum.-To constitute a quorum for the transaction of business there
must be present and voting representatives or proxies of at least twenty-five
percent of the voting membership as provided in Section 6.
SEC. 5. Proxies.-A member may be represented at meetings by a properly
authorized proxy qualified as provided in the next section, who shall file a
lawful power of attorney with the Secretary showing what member or mem-
bers he is empowered to represent.
SEC. 6. Vote and Representation.-Each publisher paying dues and/or allo-
cation of expenses of the Inst:tute may be represented in person or by proxy and
is entitled to a minimum of one vote for each publication published by such
member. Additional votes will be allowed to each publication published by
such member based on one vote for each $100,000.00 of the combined gross
income from circulation and advertising of each such publication for the pre-
vious calendar year.
For the purposes of these by-laws "circulation income" shall be determined
by multiplying the subscription price of member's publication by the paid circu-
lation, including news-stand sales of such publication, as the same may be
stated by the member to the Finance Committee.
For the purposes of these by-laws the "advertising income" of each member
shall be considered to be the gross annual receipts from the sale of advertising
space in his publication for which membership shall be held in the Institute,
without any deductions whatsoever.
ARTICLE V-BOARD OF DIRECTORS
SECTION 1. How Constituted.-The affairs of the Institute shall be managed
by a Board of Directors consisting of twenty-three members, which shall be
elected at the first meeting of the Institute and serve for a period of one year,
or until their successors are duly elected.
SEC. 2. Method of Election of Board of Directors.-Each of the groups as
defined in Article III. consisting of not less than ten members, shall be entitled
to name three members of the Board of Directors. The remaining members
of the Board shall be elected at large. The votes within each group and at
large shall be as allocated in Section 6 of Article IV; provided no publishing
house can be represented by more than one member on the Board of Directors.
SEC. 3. Powers of the Board.-At the first meeting of the Board of Directors
they shall elect from their body a Chairman, Vice Chairman, Secretary, and
Treasurer of the Institute. The Board of Directors shall have power to enforce
the collection of dues and allocation of expenses and the policies of the Insti-
tute; to employ and fix the compensation of all agents and employees; to fill
vacancies among the Officers or the Directorate; and in general to do all
things necessary to carry on the work of the Institute not expressly reserved
to the membership itself.
SEo. 4. Meetings of the Board.-Meetings of the Board of Directors may be
called at any time by the Chairman or on written request by any five members
of the Board.
Notice of the time and place of all meetings of the Board shall be telegraphed
or mailed to the members thereof not less than five days in advance of such
SEC. 5. Quorum.-At all meetings of the Board of Directors seven members
shall constitute a quorum for the transaction of business. Except as provided
by these articles of organization and bylaws, action by the Board shall be
determined by a majority vote of the members present.
SEC. 6. Executive Committee and Duties.-An Executive Committee shall be
chosen by the Board of Directors, consisting of seven of its members, one of
whom shall be chosen from each of the divisions as and if elected under
Section 2, Article V, the remaining members shall be chosen by a majority
vote of the entire Board of Directors.
The Executive Committee shall be charged with the specific administration
of the Code of Fair Practices of the industry, cooperating with the Federal
Administrator of the National Industrial Recovery Act in securing adherence
to the Code. This committee shall hear and adjust complaints and consider
proposals for amendments or exceptions to the Code.
SEC. 7. Finance Committee and. Duties.-The Board of Directors shall appoint
a Finance Committee of three, to consist of the Treasurer and two other
members chosen from the membership of the Board. It shall be the duty
of the Finance Committee to prepare a quarterly budget; to compute the
necessary and equitable amount of allocation of expenses for each publication
published by such member, submitting same to the Board of Directors for
approval, and take steps to collect same; to audit all bills of the Institute
and supervise all its accounts, and to present through the Treasurer an annual
financial report and any special reports that may be required of it by the
Board of Directors.
ARTICLE VI-DUTIEs o OFFICERS
SECTION v. Duties of Chairmazn.-The Chairman shall preside over all meet-
ings of the members and of the Board of Directors at which he may be present
and shall exercise general supervision and control over the activities of the
SEc. 2. Duties of Vice Chairman.-It shall be the duty of the Vice Chair-
man in the absence or inability of the Chairman to act, to exercise all his
powers and discharge all his duties. In the absence of both the Chairman
and Vice Chairman the meeting shall elect a temporary chairman.
SEC. 3. Duties of Treasurer.-The Treasurer shall receive all moneys of the
Institute, safely keep the same in such bank as designated by the Finance
Committee, and pay out such sums as may be authorized by the Directors in
the manner and under such conditions as they may prescribe. He shall keep
an account of all transactions of his office and make quarterly statements to
the Board of Directors and an annual report of the same to the Institute at
the annual meeting. The Treasurer shall be Chairman of the Finance Com-
mittee. The Treasurer shall furnish suitable bond as required by the Board.
SEo. 4. Duties of Secretary.-The Secretary shall keep a true record of all
proceedings of the Board of Directors. He shall have charge of all papers of
the Institute other than such as properly belong to the Treasurer.
SEO. 5. Checks.-All checks, drafts, notes, or orders for the payment of
money shall be signed by those designated by the Board of Directors.
ARTICLE VII-DUEB AND ALLOCATION OF EXPENSES
SEcTION 1. Dues.-Dues for each publication published by a member shall
be $10.00 per year payable annually in advance.
SEC. 2. Allocation of Expe-ses.-Each publication published by a member
shall pay, within thirty days after receipt of bills, any allocation of expenses
as may be approved by the Board of Directors for the purpose of raising the
necessary funds for carrying on the work of the Institute.
Such allocation shall not apply to publications having less than $100,000.00
gross annual income from circulation and advertising for the previous calendar
Such allocation shall be based upon a uniform percentage of the combined
gross annual income from circulation and advertising for the previous calendar
year as defined in Section 6, Article IV, for each publication published by a
member, but shall be limited to a maximum of one twentieth of 1 percent
of such gross business during any one year.
ARTICLE VIII-AMENDMENTS TO BYLAWS
SECTION 1. How Amended.-These bylaws may be amended by the Board of
Directors at any regular meeting of said board or at a special meeting called
for such purpose, but no amendment shall become operative or take effect until
the same shall have been recommended or ratified by a majority vote of the
members as defined in Section 6 of Article IV, by consent in writing filed with
the Secretary of the Institute or by affirmative vote cast at any meeting of
the members regularly convened, nor unless a copy of such amendment shall
have been mailed to each member with the request for a consent thereto or
ratification thereof or with the notice of meeting at which the same is to be-
considered, and in the latter case such mailing shall be at least thirty days in
advance of the date of meetings. In the event that the amendment shall be
consented to in writing by a majority of the members, then upon the filing
with the Secretary of such consents the Secretary shall send to each member
a notice of the adoption of the amendment.
PERIODICAL PUBLISHERS INSTITUTE,
232 Madison Avenue (Room 1000), Nezo York, N.Y.
urNIVERSITY OF FLORIDA
DII HI 11111lllll11 1H I II IIIIIlUIUl
3 1262 08856 0288
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