Approved Code No. 174
Registry No. 807--1-06
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Approved Code No. 174
CODE OF FAIR COMPETITION
RCUIBBER TIRE MXAN~UFACTUJRING IND~USTRYk
As Approved on December 21, 1933
An application havinga been duly made, pursuant to and: inl full
compliance with the provisions of T~itle I of thle Niuational Indlustr~ial
Recovery Act, approved Junie 16, 193:3. for myS approval of a C~ode
of Fair Competition for the Rubber Tire M~anufactur~ing Industry,
and hearings having been heldl thiereon and the Admninistrator having
rendered his report containing an analysis of the saidl Code o:f Fair
Competition together with his recommnendlations and findtings with
respect therePto andr thep Adminij~ strtionl havingr foundc th~at the said-
Code of Fair Competition complies in all respects with thle p~ertinent
provisions of Title I of said Act and- that the requirements of clauses
(1) and (2) of sub-section (a) of Section 3 of the said Act. have
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant. to the authorityl vested in mie by Title I of
the Nationial Industr~ial Recoverl Act., approved June 16l, 1(,33, and
otherwise, do adopt and approve the report, r~ecommllendatioion and
findings of the Adtministrator and do order that the said Code
of Fair Competition be andi it is her~eby approved, upon condition
that, without. in any way limiting thie effect of Section 10 (b) of
Title I of the National Indlustrial Recovery Act, or of Section 1 of
Article IX of said Code, I specifically retain the right to cancel
this approval of said Code, or to modify saidl Codle in such miannier
as may be required to prevent any unfair trade practices within the
Rubber Tire Mfanufacturingr Industry whiich mnay become evidetnt in
any investigations by the Fedleral Tra~de Comimissiion or inl thle ap-
plication of said Code; and
Th~e Adcministrato~r is h~ereby directed to conduct such investi-
gations as may~ be~ necessary) to advise mne fully within ninety days
concer~ningi the ex istence oir evelopmient of any un fa ir t rade practices
within saidl Industry! utilizing the aid of thle Fed~eral Trade Comn-
mnission in the exp~editious dletermninationn of any complaints con-
cerning su~r ch unfafir' trade practices.
FRANKLIN D. ROOSjEVE~LT.
Appr~oval recommended :
HUGcII S. JoTNSON,
Ad m-n inist r~atfor.
THE T~HITE HousE,
Dcem~iber R1, 1933.
THE PRESIDENT, DECEMBER 20, 1933.
The Il'hite Hmmse.
SmR: The proposed C~ode of Fair Competition for t~he Rtubber Tire
M~anufacturingf Industry was sulbmlitted to thle AdmlliniStrator on
July 31, 1933. It was reconsidered by the Industry and a revised
code was submitted onl October 3, 1933, by the Rubber Mannufucturers
Association,? representing ap~proximatl 85cr of thre members of the
Indlustry and volume of production. The Hearing was conducted in
Wa~'shington on October 20, 1933. The Code was revised during the
recess of this Heearing andl is submitted in its present form for ap-
proval. Every person who requested an appearance was properly
heard in accordance with statut~ory and regiulatory r~equir~ements.
HOURS O:F WORKi
Under this Code, factory employees are limiited to 36 hours per,
week averagedl over a calendar yetar. with a restriction of 8 h~oulr per
day and 42 hours in any one w~eek. Overtimie in excess of 30 hours
per week shall be paid at thle rate of timle andi one third~.
Maintenance crews, engineers, firemen, shipping crews, and tiret
testers are limiited to 40t ho-urs per' weeki and 8 hours per day, ex~ept
in cases of emergency. Ove.rtimet in excess of 410 hours per w~eek or
8 hours per day sh~all bie panid for at th~e rate of time? and o~ne third.
Watchmlen are limited to 84 hours in any twro-week; period with one
day off in seven.
Accounting, clerical, office, servie, sanles, or other emnployees (except
oultsider~ salesmeln) receiving $85.00r per weeke or less, are limited to an
avlerage of 410 hours a week over the p~erio-d of one month, but in no
case shl~~l th~er work more than 48S hours inl any one wcseek. Salaried
employees receiving more than $35.00 per' wSee' and outside salesmen
are not restricted to anyl malximum~ hours.
Th~is Code provides fo~r a n miinmum wnge of $0.410 pier hour unless
the rate for the samle class of wiorke on Julyr 15, 1929, waZs less than
$;0.410, in whiich~ ense the ratte per hour shall not be less than the rate
paidl on Jully 15, 1929. In no event shiall the rate per hour be less
thian $0.35. Apprentices, during n. six weeks` apprenticeship, m~ay be
pa"id niot less than 80Sr of these miinimum rates. Such apprentices
shall not constitute more than five percent of the total employees mn
anly one establishment.
Minimums for salaried em~ployees range from $12.00 per week in
towns of less than 2,500 population to $15.00 per w-eek in cities of
500,000. Clerical apprentices, office boys andl girls mlay be paidl not
less than 80%b of these mninimumins but. may not constitute more th~an
five percent of the total office employees in any one esta~blishment.
Provision is made for sup~erannuated and disabled employees; for
equalization of r~ates of pay for men and w-omen performing the
samie work; for equitable adjustmlents of pay schedules of factory
e~mplo yetes above the minimum andi for the posting of the labor pro-
visions of the Code.
OiTHER PROVISIONS OF THE CODE
The Code provides that the Code Authority~ shall undertake a
study of costs inl the Industr~y and submit recomimendations to the
Adm-inistrator w~ithinl sixty7 days from the approval of the Code, for
the incorporation of an adequate cost, recovery provision in the Code.
The Industry believes that t~he problems presented by the existence
of widely varying selling programs and the use of many channels of
distribution mnake such an inquiry necessary. Final adoption of any
provisions regarding selling below cost is specifically subject to the
approval of the Administrator.
The Industry has adopted twenlty-seven trade prnetice provisions
in this Code, designed to eliminate various forms of unfair com-
petition. The Code further provides that the Clode Authority shall
make recommendations to the Administrattor at a later date, in
regard to t~he adoption of a standard warranty, the status of time or
inilenge contracts, the simplification of the number of lines of
tires, the establishment, of a committee to coordinate this Code wFith
that of the Retail Rubber Tire and Battery Trade and the adoption
of an openi price system for the Industry.
ECONOMICI( EFFECT OF CODE
Thle followingf tabulation shlows the effect of the depression on
the Industry :
1929 1932 Decrease
Sales.~.........~~....~........~... ...~......~...~~.....~.............8675, 000. 000 $300, Oi.00000
Production (ca~sings ..~. .....................~................... ~. 69. 000, 000 40, 000, 000
WVage esrners.......~.. ...~~.~...................~................. ;J1,700 35. 800 4
Numberrof companies..~....~...................... ............... 62 35 4
The Industry has already made the wngnes and hours provisions of
this Code effective in a large degree, as is indicated by the following
1Production1 Employ- Average Av~erage
casmugs zuent, wage hours hourly
earners per week earnings
blay.....~~_...~. ...............~. ~ _........~......... ... 5, 200, 000 38, &I5 38 80.585
June.......-.~._....~.....................__ ...~~....... .. ,0,0 44,148S 42 .570
July..~....._.. ._.......~....~..........~._~..~.~.~......... 5, 700, 000 I 49, 680 38 .620
Au eust.............~~.. ............... ............ 5,000, 000 52 962 32 .054
Septemnber......... ~................... .._ .. ..... ._. 4, 000, 000 52. 850 30 .681
Ocotoer......~~~~........................_ .~..~~._........ 3, 400,00 L8O0,400 31 .088
October production w~as only 65% of the prod-uction in Miay.
Nevertheless employment increased over .30C. andl average~ hourly
earnings increased approximately 179~. Avecrage~ hours per week
have declined due to seasional decline in production. w-hich invariably
occurs during the months of October, Novembler, anld December.
No other Inidustry can derive greater benefits fromii the Act. This
Clode in no sense emnbodlies a complete solution of all the problems
of t~he Industry~. It does represent a real begpinning. The reclama-
tion of this Industry fr~om the dlestructive competition which exists
must be a continuing task over a longa per~iodl of t.imie.
The Administrator' finds that:
1. This Cod~e comnpies in all respects with the pertinent phra~ses
of Title I of t~he Act, including but without limitation Subsection
(a) of Section 7i, and Subsection (b) of Section 10 thereof.
2. The Rubber manufacturers' Association, Incorporated, is truly
represrenta-tivet of thie Rubber Tir~e Alanlufacturingr Inldustry and its
bylawrs contain no inequitable restrictionss on mnemblership.
3. The Code is not designed to p~romnote monopolies or to eliminate
or oppress small enlterprises aic nd ill not operate to discrimlinat~e
against them. The Code w~ill teind to effectuate the policy of Title I
of the National Iindustrial Recovery Act.
It is recommllenledl, therefore? that this Code be approved.
Respect ful ly,
HUGH S. JOHNSON,
CODE OF FAIR COMPETITION
RUBBER TIRE MANUFACTURING INDUSTRY
To effect the policies of Title I of the National Industrial Recovery
Act, this Code is submitted as a Code of Fair Competition for the
Rubiber Tire Mannufacturing Industry, and upon approval by the !
President, its provisions shall be the standards of fair competition for
this Industry, and shall be binding upon every mlember thereof.
SECTION -1. The termi Rubber Tire Ma~nufacturing Industry or
"Indstry", as used herein, shall mean the manufacture for sale in
the continental UCnited States (including Alaska) and sale at whole-
sale by manufacturers or subsidiaries or affiliates of thle same of solid
or pneIumatIic. rLIubbe tires ndl/lor pneumatic rubber tubes, together
with such related branches or divisions as may from time to time be
included under the provisionss of thiis Code by the President, after
such notice and hearing as he may' prescribe.
Sec. 2. The term "Lmember of th~e Industry "? or member as used
herein includes, but without limitation, any individual, partnership,
association, corporation, or other formn of enterprise engaged in the
mnanulfactulre or both manufacture and sale at wholesale of any prod-
ucts of the Industry~, or any subsidiary ry or affiliate of t he same engaged
in the sale at wholesale of any p~rodlucts of t.he Indlustry.
SEc. 3. The term L"memberl of the Code as used hereinl, includes
any mlember of the Ind'ustry who shall expressly signify assent to
SEc. 4. The term "C emnployee as used herecin, includes any anid all
Persons~ engaged in the Industry, how-ever compensated, except a ?
members of the Ind ustry.
S~EC. 5i. The termn "Association as usedl herein, shall mean the il
Rubbe~r 1Manufacturers Association, Inlcor~porat.ed, 0, corporation or- I
ganizedl under the laws of the State of Connecticut and having its
pr'incipal offce at 950 W~est 57th Sftreet, New Y'ork, New Y'ork.
SEc. 6. The terlm '"dealer "' as used' herein, shall mnean anyone,~
wFhet'her or not a member has a1 financial interest thlerein, who p~ur-
chases~ a member's brand of tires~ and.'or tub~es, from a. member or
jobbler, u~ndrl contract for sale. eithler absolute, conditional, or on
consigqnmntnt and wvho in tur~n resells to other than employ~ees or
affiliatedi comrnpanies, at least 759; of tbhe tires or tubes so purchased.
Comnpany rtacil stores, whiether~ wholly or par~tly owned, shall be
classifiedl as dealers.
SEC. 7. Thie term jobber as riced hierein, shaqll mean anyone who
sells at least 7i5%i~ of his total volumlle of tire., and/or tubes through
or to dealers for resale to cons~umlers~, wvhether or niot such dealers are
owned or affiliated with or controlled b~y iruch jo-bber, andl who per-
forms the services of a job~ber such~ as1; maintainingr a stock, selling,a
shipping, billing, and carrying accounts receivauble.
SEc. 8. The terml "' warehouse dlealer as used hetreini, shall mIiean
a dealer whlo acts as a shipping agenit for a m~ember of the Industry
with sales, credits, and collectio-ns handlec d by that mnember.
SEC. 9. The termn (110h PIPOSirent" as used liereii, shall mean the
President of the Unitedl States.
SEC. 10. The termi "'the Adlminis'trator as used hetrein, shall mean
the Administrator appointed under Title I of thle Nationa~l industrial
SEC. 11. The ter~m the Alct ".? as usedl her~einl, shall mean thne N~a-
tional Industrial Recovery Act.
SEC. 12. Population for th~e p~urosesi of this Code shall be dleter-
mzined by reference to the latest Fedleral Censius.
A. ADMINISITRATION AND ORGANIZATION
SECTION 1. To further effectulate the policies of the Act, a Tire
Code Aut~hority (herein refiI1erre to as the C'ode Authority) is hereby
set up for the administration of thiis Code..
SEC. 2. The COde Authority shall consist of eight persons who
shall be selected by the Induistry byr a fair mnethodl of selection, ac-
cording to such rules as it. may~~ determine. The Administratorl in
his discretion, may appoint niot mlor'e thlan thlree additional membilers,
without vote, to represent thle Adlministra~tor, without~ expense to the
Industry or Ass~ociationl. No two of the members of the Code Au-
thorit~y or their alter~nates shall b~e nfliliated with any single mnemiber
of the Indlustry.
(a) In order that th~e Code Authority shall at all times be truly
r~epresentative of the Industry andl in other respec~ts comply with the
provisions of the Act, thec Admninistrator myn~ provided sulch hearing s
as he may deemi proper; an3d if there after h~e shall find that the Code
Authority is not truly representative or does nlot in ot'her respects
comply with the provisions of th~e Ac~t. he many require modification
in the methodl of selection of the Code Authority.
(b) The President of the Association and its G~eneral Mlanager
shall act as ex-officlio members of the C'ode Authority with no voting
power. The General M~anager of the Association sliall act as Chair-
man of the Code Author~ity.
(c) One alternate shall be selected for each member of thie Codle
Authority, with full power to vote in the absence of his principal.
Provided that no twro alter~nates shl~nl be affiliatedl with any single
member of the Industry.
(d) Should any ma'tter come before thle Code Author~it y which
specifically inv-olv-es acts, conduct, or the interest of a miember of thle
Industry with which any member of the Code Authority is asso-
cinted or emplloyed. such miember of the Code Au~lthor)ity' shlln be
disqualified to act in such mat~ter. The designated alternate shall -.
act in place of the dlisqualified member of t~he Code Authlority.
(e) Mfeetings shall be called by the Chairmian either at. his dis-
cretionl, or on the suggestion of any three members of the Code
Authiority. The Code Authority shall determine its own rules of :
SEC. 3. The Code Author~ity shall have the duties and powers
herein provided subject to the rightt of thie Admlinistrator, on review,
to disapprove any action taken by the Code Authority.
(a) Thle C~ode Authorityr shall make investigations as to the
functioning andt observance of any provisions of this Code at its
own instance, or onl complaint by any person aff'ectedl, and report its
findings and recommendations to t~he Administrator.
(b) The Code AuthorityF sha71 Sllstdy the trade practice pro-
visions incorporated in this Code, and the operation thereof and
shall ma~ke such recommllendations to the Adminsltr rtorP from time
toi time which it considers desirable, for mlodification or addition
thereto, prov9ided such recommendations shanll hanve been approved.
by members of the C'ode as provided in Articlc X. UCponi approval
by the A~dminist-rator, after such hearing as hie mayn prescribe, such
recommnendastion~s shall becomec a par~t of th~is Codie and have full
force and effect as pr1ovisions h~ereof.
(c) The Code Authlority mnay at its djiscretion pries-ent recom-
mendtations to thle Admninistrator, based on conditions in the In-
dustry, as they miay dev\elop> froms timec to time, pr1ovid~edl such recom-
miendaltions shall hiave been approved by membilers of the Code
as pIrovided in Article X. Such recommllendations shanll be de-signed
to facilitate thle operations of thle p~rovisionis of this Coude and the
policy of th Act.
(df The Code Authority may3 retquire reports fromn members of
the Industry in respect to hours of labor, wages, conditions of em-
ploymient, number of employees, plaint capacity, production, orders,
shipments, invenitories, and any other matters pertinent to this Code
ini order that thet President may tw kept informed writh respect to
the observannce and per~formalnce of the Code.
(e) Th')e Code Atuthority may, at its discrtion, set up any or all
of the follow-ing comnmittees or any other committees, if their
existence will further effectuate the policies of the Act, viz:
Accounting Industrial Relations
Comints~it and Grievances Statistical
(f) The Codle Aulthority may set up a committee on imports whose
duty it shlall be to investigate and inform the President as to the
importation of competitive articles into t~he UI~nited Sttats in sub-
stantial quantities or increasing ratio to domestic production, on
such. term or under such conditions as to render ineffective or to
seriously endang~er the maintenance of thiis C7ode us provided in
Section 3 (e) of the Act. The Committee shall make such reports
of its findings to the Code Authority who shall in~formi the President
through thze proper channels.
SEC. 4. The Association is hereby designated as the agency for
the collection of statistics, dlata, reports, and information under the I
Code, provided that no inlequitable res~tr~ictions uploni membr~, rship
therein shall at any time be imp~osed.
(a) Every member of the Indlustryg shall~ lu,1:.pare' ;1nd file w\ith
the Association at such times andl in such mainner~i andt foirmi as thie
Code A-uthority may r~equirie, statistics of plant capa~c~ity.. prloduc-
tion, sales, or~der~s received, inventorieis, w~nge ra~tes, hours of w-~o~rk,
and such other dafta or inlformatioi n u~ t he Athi nilst ratorl mayn?, filront
time to timez, requir~e. Su~lch r'epor~ts anldl or records mayn! be eitherr
(b) In addition to informa~tioni required~ to~ bel submitted t6 the
Cede Aulthority, eve~ry members of the Ind~ustry hall unip.h directly
to gov.eirnmntal agenecios sulch statihticral in~forma~tio n as thle' Admlin-
i~strautorl may~ dlteem necessa~ry for the pjurp~oses recited inl Sectioni :3 (a)
of thec Act.
(C) Exceptr as: otherwise pr1ovidedc in th~e Act, all1 su~ch statistics,
dlata. and information filedi in necordcanice with~ this Article~ shall b~e
conifidcntial, andlc the replorts andi rrcordcs fr~om anyindviua m
ber of the Inidustryv siall only be r~evin led to the AdmliniSt entOr' or
other governmlentalj authority, to thle extent niecessary forl thie admin-
istration and eniforcemnent of; thr Iprovisions of this Codle.
(d)j If the Associatio n shall hav\e r~easonl to believe that aIny re-
por'ts ,submllittedl by a membe~~cr are~ ina~c~curatee su~lch rep~or'ts ma! b~e
verified by a disinterecstedl anil imprnntial agvenlcy designated~ byI thle
Code Authority, and1 for. suchI pnrp~o'e such agncy sh~arll have
access to anyi andl all r~elevanti booksil~ andi r~ecordcs of such member.
of the Industry! to file orI furnlishl informaltio~n requir~ed under~i this
Article shall constitute ani unfair trad(.e p~ractice andic a v'iolation of
S~EC. 5'. Each member~%~ of the C'odle shaill be; enititledi to pariticipate in
the activities of the Alssociation in ~olnnectio~lln ith~ the adminiiistration
of the Code. Any~ other m~emb~er of thle Indus~itl ry ay become en-
titled to participate by becoming a mrem~ber of the C'ode. Each
members of the Code shall bear an eqluitnble share of th~e cost of
maintePnance of the Conde Authori;ty,~ ether byi becoming a miemnber of
the Alssocriation or by~ playing to the Alssociaioni a7 sum1 equal to its
reasonable shar~e of thie expenses incurredt in the adminlistra7ti on1 of
this Ciode, as dletermnined by the Code Auithor~ity, subject to review
by the Adminlistrator.
A. INDUSiTRIAL-RELAT2ION'S PIL'ICIES
SECTION 1. In comnpliance with Section 7 (0) of thie Act. it is
(a) That emlployvees shall havre the r~ight to organilize and! barg~ai n
collectivelv t~hrough representatives of their own1 choosing, andt shall
be free fromn the interference? restr~ainlt, or coercionl of emnployers of
labor or their Igrents in t~he designationl of such recpres~entati ves. i or in
self-organization or in other concerted activities for the p~urpose of
collective bargaining or other muitual aid or protection.
(b) That nio employee and no onie seeking employment shall be
required as a condition of emnploymient to join anyi company union
or to refrain from1! joining, organizing, or assisting a labor organi-
zation of his own1 choosing; and~
(c) That emplloyer~s shall comply with the mnaximum hours of
labor, minimum rates of p~ay, andl other conditions of employment
approved or prcscribedl by~ thle Pr~esident.
SEC. 2. NO person 011000 li6 yearS of age shall be employed in the
Industry. No personl under 18 years of age shall be employed on
any m~llni ng or calneriPng operations or any other operations where
there mayr be recognizedl hazards connected with the job~ or operation.
SEC. 3. NO p~rovisiGH Il tlils COde Shall supersede any State or
Federal law whiich imposes mnore stringent requirements on em-
play'ers as to age of employees, w~ages, hours of work, or as to safety,
health, anitary, or general working conditions, or insurance, or fire
protections, than are im~posed by this C'ode.
SECTION 1. Except as prov~idedl in Section 9, no factory employee
shall work or be perm1iftted to wVork, inl rSexes of anl average of 36
hours in anyi onei week, av~flerage over a calendar yerar, nor more
than 8 hours in any 241-hour period. Provided- that. no such emn-
ployee shall works or be p~ermnittedl to w~ork monre than 42 hours in
aIny one week. For all hours worked in excess of 36 hlour~s per week,
overtimief shall be panid at the rante of time andl o-ne third. It is t~he
intent. thlat the hours worked by employees ulnder this Section shall
be consecutive, except that reasonable provision mayr be maxde for
SEC. e. $18111(0118110 crews, eigilleerS, firemen, Shilpping~ cr~ews, and
tire testers shall not wol~rk or be permitted to w~ork in excess of 400
hours1' in any one w~eeki nor more than 8 hours in any 24-hlour period.
Provided, iow~eer, thlat thlis limlitationl of hours shall not apply in
cases of emnergency, b~ut in suich cases all hours worked inl excess of
410 hours in any one w-eek or 8 hours in any 24-hour period shall be
paRid for at the rate of timie andl one third.
(a) Wartchmec n shall not, wo~rk or b~e prm~nitted to w-ork more than
84l hou~rs in any t w~o wreeks' period, providedl that such employees
shall have onie dayv off' inl seven.
SEC'. :3. II(COllnlillF clermacl, offee, service, sales, or other em-
ployees (exscepting~ outside salesmnen) shall not w~ork;, or be permitted
to w~orkl, in excess of an average of 40 hours a. week~ over the period
of a monclth, nor mor~e thann 4~ hours in any' one week.
SEc. 41. Thle nlu~ixllimu hours1' fixed in ~Sections 1, 2, andl 3 shall
not. apply to salar~ied emnployees inl any mianageriall executive, cleri-
cal, supcrvisory~, or techlnical enpacity receiving more than $35.00
pier wreek, nor to any' outside salesm~en.
Soc. 5~. No emlploy'ee shall worilk, or be. permitted to wvork, for a
totall number3CL of hou~lrs in exCctSs of the number of hlours prescribed
for achcl w~teek and~ day, whether employed byr onie or miore empgloyers;
provided, howevercl that if any empilloyee works for mlore than one
empnlloyerr for a total lrnumber of hours in excess of such maximumi
without the knowledge or connivance of any one of his employers,
such employer shall not be deemed to have ~violalted- this section.
SEC. 6. TNO employee! shall be classified in anly of the foregoing
exempted classes unless he performs functions idlentienl with those
performed byv employees thus classifiedl onl June 16, 19:33.
SECTION 1. Except as hlerein below provided, no employee shall be
paid in any pay8 periodl less thalnl at thle rate of forty cents ($0.40)
per hour. Pr~ovided, however, that where the h~ourly rrate for the
same or similar class of w-orki on July 15, ~1999, was less than forty
cents ($0.40) per hour. no employee shall be paid at le~ss than the
rate per hour paid on July 15, 199"9, but in no event shall the rate
per hour be less than $0.35.
(a) Apprentice~s, during a six w~eeks' apprenticeship may be paid
not less than eighty~ percent of thle above specified minimum rates.
Such apprentices shall be understood as persons having no previous
experience or emiploymient oni similar w~ork in the Industry and shall
not constitute more than five (5) per cent of the total employees
covered by this Section, in the employ of any memberi.
SEa. 2. No salaried employee (except outside salesmlen, office girls
and boys, anid clerical apprentices) shall be paid less than at the
rate of :
$15.00 pe~r w\eek .......---- Cities over 500,000 population or inl thne imme-
diate trade area of such a city.
$141.50? per w~eek __ ..____ Cities between 250,00b0 and 500),000 population
or in the immediate trade area of such a city.
$;14.00 per w~eeki_______ Cities between 2,500 and under 2.10,00(0 popula-
tion or in the immediate trade area of such
$12.00 per week.._______ Tlowns of less than 2,500 population.
(a) s C clerical apprentices during a six months' apprenticeship, and
offie bos. and irls miay b~e padnot less than 80% of the above
minmum. Schexceptedd office employees shall not exsceed 5%r of
the total nulmber of employees covered byr Section 2, in the employ
of any member.
SEc~. 3. The provisions in Article IV-B shall not apply to any
employee par~tially incapacitated through age, injury, or disease;
provided, however, tha~t such emnployree shall receive not less than
$0.25 per hour. Each mnemberl of the Industry shall report to the
A ssoc i at ion monthly t~he number and n amI~es of employees so
SEC. 4. Female employees performing the same work as male
employees in manufacturing operations s~hacll receive the same rates
of pay as manle employees.
SEC. 5. Article IV-B establishes a miinimum rate of p~ay which
shall apply, whether an employee is actually compensated on a time
rate, p'iecework, or other basis.
SEc. 6. Equitable adjustmnents in all pay schedules of factory
employees above the minimum shall be made within thirty (30) days
after the approval of this Code by any members who have not hlere-
tofore made such adljustments, and the first monthly reports of
wagres Irequlire to be'C Blejd under this Code shall contain full infor-
maRtion as to nil wange increases made since Mlay 1, 1933.
C. POSTING OF LAHIOR PROV'ISIONS
SECTION 1. Every miemnber of the Industry shall post in conspicu-
ous places in all departments of his establishment or establishments
copies of Articles III and IV' of this Code.
A. COST ANDU MARKET STABI3LIZATION
SECTION 1. The Code Author~ity shall immedrciately upon approval
of this Codle proceedl to a study~ of a market stabilizationi plan based
on cost control.
(a)l A standalnrd uiniformn system of accouning,~c for' the guidance of
each mnember of thle Industry, shall be developedl undrli thie direction
of the Code Aulthority.
(b) The Code Aulthoriity shall designate, writh the approval of the
Admlinistrator. a disiniter~ested and imipar~tial agency, to procure and
compile the data required to complete, the study andl to act as the
agency through which such compiled data shall be tr~ansmlitted to the
C'ode Authority, in order that all cost data o~f m~emlbers of the Indus-
tryv shall be ke~pt confidential. Each member of the Industry shall
furnish- suchh agency withl such reports as mnay be dlesigniated by the
(c) Th~e Codec Authority shall confer with the Administrator~ from
timie to timne inl thle course of formulat.ingr its recommlnendat~ions as to
the plan for suchi market stabilization hierein above proposed. The
Code Au~thlority shall muake an initial report concerning progress in
the formiulationi of such a p~lan withlin thirty (30) days after the ap-
provanl of this C'ode. Final recoimmendation shall be submitted to
the Admninistra~tor within sixty (60) dlays from date of approval of
SEC. 2. After such marlket stabilization planl based on cost control
shall hiave receivecd approval by the Industiry and by the Admiinistra-
tor, such plan shall become a part of this Code. Violation of anly
provisioni of such plani shall be considered an unfair trade practice
and sub~jectt to the penalties of the Act.
AIRTICLE VI i
A. TR~ADE PRACTICES
fECTION 1. No member shall use advertisinlg (whether printed,
radio, display, or of any other nature) or other representation which
is inaccurate in any? material particular or which refers inaccurately
to competitors or their commodities, prices, values, credit terms,
policies, or services. No member shall, in any way, misrepresent any
commnodtity includingg its use, trade mnark, grade, quality, quantity,
origin, size, srpecifications) or his credit terms? values, policies, serv--
ices, or thre nature or' formi of the business conducted.
SEC. 2. NO mlembetr shall use advertising or selling methods or
credit terms which tend to deceive or misleand a cus~toier or p~rospec-
SEC. 3. 1NO m~em-~ber s~iml publish OF cif~cHIrTIZE un ustif ed Or un-
wrarrantedl threats of legal pr1oceedlings which tend to or have the
effect of har~assinga comp~etitors or intimiidating their. cus~tomers.
SEC. -l. NO member hall s-ecr~etlyv offer or make any payment or
allowannce of a rebate. refund, commission, credlit, uiineanedl d~iscount
or excess allowance, whleth~er in thle form of money o-r otherwise, for
the purpose of influencing a sale; nior shall a miemiber secretly extend
to any customer any special eervice or priivilegie not extend~ed~ to all
customers of the samie class.
SEC. 5j. No m:emberc~l shlall grivei, perm'lit to b~e given, or offer to give
anythiing of vanlue for thle pulrposee of inlfluencing or rewyarding h
action of any emiployee or avyent of another., ini relation to thebui
ness of the empl-loycr olf suchi employee. or the principal of sulch
agent wit.hort, thle k~now~elrea of su~chJ em~ployert l or principal.
SEC. (j. NO member shall, directly or indir~ectly, give or pecrlitt to
be given or offer to give, mnoney~ o~ anyl~thingi of va~lue, to any cus-
tomer or p~rospective customer, or to anyionec else uplon the instigation
and for thle becnefit of anly customer or p~rosp~ective customer, to induce
such customers' or' proCsp~ct t ive ustomler to pu~1rch~se tires or tubes
frOn SUCh membnlers.
cSEC. r. NO member shanll secure confidential information concern-
ing the bus~iness of a comnpetito- r by a false or miisleadling staitement
or r~eprlesentation, by a false implersona!tionl of onle inl authority, byI
bribery), or by any other unfair~ method-.
SEc. 8. No) member shall uinfair~ly attempt to induce the breach of
an existing contrnet b~etw~een a competitor' and hisi employee or cus-
tomer or source of supply; nor shall any such miemnber unlfairly inter-
fere withi or obstruct the performance of suich contrafctual duties or
SEC. 5,. No member shanll brandl or manrk or pack any comlmodity
in any manner which tendls to deceive or misleadl purchasers~ with, re-
spect to th~e bra~ndl, radeil quality qjuantity. oiiriin, size, or sp~ecifica-
tion of such comlmodity.
SEc. 10. AIfter. February 1, 1934, no mnember shanll manufa~ctu r~e any
automobile. truck, and.*'or hus p~neumllatic tiresi which do niot clearly
indiente on the side wall of the easinr andc~ on thle label the number
of cord p~lies from b~ead to bead, built into the easing. B~reakrer strips
shall not be construedl as plies for side w-all or label markingr. Plies
extenldingi from the heel of one bend to the hieel of the other bend, ifE
of substantially the: same constructionn as othier plies in the, tire, shall
not be construed as breaker strips. The Codle Authority may desig-
nate such markings for purposes of this Section.
SEC. 11. The uDD.uthonized use by any member either in writing
or oral formi, of trade marks, trade names, or slogans identical with
or mn imitation of, those already in use by any other member, shall
SEC. 12. ErO member shall withhold from or insert into any invoice
anything which would make the invoice a false record, wFholly or in
p~art., of the transaction to wh~-ich it refers, or makre any arrangement
which contemplates payment or settlement contrary to the face of the
invoice. No memuber shall postdate or predate orders, invoices, or
contracts. This Section shall not prohibit the granting of a bonus
in accordance with any member's regular program. :
S~EC, 13. \Vitm ten tlayS after the effective date of this Code, each
member shall file with~ the Association all Consumers' Preferred :!
Wholesale andr State Lists. The Consumners' Lists shall be the lists "
from which dealer and, or jobber discounts shall be applicable and
shall apply to the sale of tires and/or tubes to owners of less than
five vehicles. Thle Preferr~ed WYholesale Lists shall apply to com- -
me~rcial operators of five or more vehicles. The State Lists shall
apply to all State, County, andt municipal accounts. These lists shall
be effectiv-e immiedliately upon such filing.
(3) Thereafter, no member shall change suchi lists without filing
new lists with the Association. stating th~e effective date of such
effective date shall be not less than ten dnvs from the date of filing
of ther new lists.chnrs vceltit i u h c a g n le ~ dci n s c
(b>) Thle Associat~ion shalf, p~romptly after receipt of such revised
lists, notify all members affected. Such aff'ectedl members may there-
upon7 file w~ithi the Acsociation revisions of their lists which, if filed
prior to the date when the revised lists first filed shall go into effect,
mnay become effective on said dtate.
(c) No member shanll fill at old prices orders received or showing
postmark after 1":01 A.M. of the day upon which his new lists be-
come effrective. No member shall give any informantioni to any class
of tr~ade regard~ingi price changes prior t~o t.he da~te of filing thereof
w~ith thle Association.
*C1EC. 14. No members' shall solicit the r~einstatemnent of any order
prev\iously cancelled, at other. than his own current~ prices.
SCEC. 15. Effective immediately upon the signing of this Code by
the Pr~esident, no member shall sell or offer for sale any tires or
tuibes which~ have been, or should be, properly classified as seconds ",
exc.ep~t to emplloyeesi for their ow~n personal use and niot for resale
purpocses No member shall sell "' firsts as "' seconds "! under any
ci crcumsta nces.
SEC. 16j. NO mnember shall sell or dispose of any tires or tubes
of ob~solete, discontinued design or change-overs at special prices
(a)Noifyngthe Code Authorityl two (2) w~eekrs in advance of.
the number of~n Itirs or tubes to be so disposed of, with the reasons
t he refo r.
(b) StatingS discoulnt belowr the: regular established price at wvhich
they are to be sold.
c) B~randingr such tires, other than changae-oer~s, so to be sold
wiha s~itable decsignl that shall be designated by the Code Author-
(d) Obtaining the approval of the Code Author~ity for such dis-
posnI. If the Codle Authiority denies approval or fails to notify such
m~embter of its dlecision within ten (10) days, such member mlay ap-
pea to t~he Admllinis~trato r who shall have power to girant approval.
TI'e Code Auth~ority~ shall adv\ise all members of the Industry simu~l-
taneously of such author~izations.
SEc. 17. For the purposes of Sections 15 and 10; reinn' "seconds ",
obsolete and discontinued designs andl change-ovecrs shall be defined
(a) Seconds shall be defined as all tires und/lor tubes which
have become defective in the course of manulfacture.
(b) Obsolete and discontinued designs shall be defined as all
tires andr/?or tubes whlichl have actually been discontinued from~ pro-
(c) Change-over tires shall be defined as original equipment tires
which have been r~emoved from new vehicles anld which are practi-
cally new or show only slight wear.
SEC. 18. NO member shall extendi dealers' prices to per~sons other
than dealers as herein defined. If the applicaonothsdfiio
in an~y particular case should work an unjust hardship on any member
of the Industry or customer, such member orustomer mray appeal
to the Code Authority which shall have power to mak~e such excep-
tion as justice may require.
SEC. 19. NO member shall extend jobbers' prices to dealers~ as
herein defined. If the application of this section in any particular
case should wo~rk an unjust ha~rdship on any member of the industry
or customer, such memiber or customer may appeal to the Code Au-
thorityr which shall have power to makie such exception as justice
SEC. 20. No mlembel~r shjlall take over from any dealer or jobber,
either by purchase or exchange, any tires and/or tubes of other
SEc7. 21. No member shall offer or give any tires or tuabes, or sell
any such tires or tubes at reduced prices, for test purposes without
prior approval by the Code Authori~tyS.
SEc. 22. No member shall offer to a dealer the discounts and/or
allowances given to a warehouse dealer unless the dealer shall be
required to perform the services of a warehouse dealer.
SEC. 23. The Code Authority shall within thirty (30) days after
the effective date, obtain from; the Tire Comnmittee of the Tire and
Rim Association standard specifications for the Industry- covering
cross sectional diameters, anti-skid depths, total tread thicknlesses
and such other specifications as in their judgment will standardizee
manufacturing tolerances within the Industry. When these stand-
ardls shall have been submitted to the Industry and approved in ac-
cordance with A~rticle XY, the Association shall send a copy of such
standards to every member of the Industry. Such stanldar~ds shall
become effective ninety (90)j days thereafter and any dleviatio~n in
the manufacture of any tires beyond the maximumi so established,
shall constitute an unfair trade practice unless such tires which ex-
ceed these specifications shall be sold at a proportionately higher price
which truly reflects their higher cost. The Code Authority upon
request of any member shall investigate and rule upon any disputed
cases. Shouldl the application of this ,Section in any particular case
work anl unjust hardship on any member of the Inldustry, ~uch~ memn-
ber may appeal to the Administrator who shall have pow~Ter to granit
such exceptioni as justice miay require.
SEc. 241. Effective immediately upon the signing of this Code by
the President no. members shall accept written or verbal orders, agree-
mnents, or contracts for the sale of tires or tubes to any commercial
and 'or national account, the effect of which is to guarantee prices
on future deliveries.
SEC. 25. Effective immediately upon the signing of this Code by
the President no member shall use terms of payment to national or
commercial accounts exceeding the customary 10th proximno terms or
renew or extend existing orders, agreements, or contracts as a subter-
fuge, in violation of Section 24. For purposes of interpretation of
Section 24 orders delivered within thirty (30) days after date of
order may be construed as immediate delivery "; deliveries after
such thirty (30) days' period shall be construed as "L future delivery "
and billed at prices in effect on delivery date.-
SEC. 26. No member shall offer for sole a rebuilt and/'or retreaded
tire without marking on the sidewall thereof a suitable design to be
approved by the Codle Authority.
SEc. 27. Violation of any of the provisions of Article VTI shall be
considered an unfair trade practice and subject to the penalties of the
A. COMPLAINTS AND APPEAL
SECTION 1. Any interested party shall have the right of com-
plaint to thte. Code Aiuthorit~y and Prompt hearings and decision
thereon in respect to any matter arising under this Code. Such
complaint mulst be filed in writing with the Code Authorityr within
a reasonable period of time after the complaint arises.
SEC. 2. Any interested party shall have the right of appeal to thie
Administrator under such procedure as hie shall prescribe in respect
to any decision, rule, regulation, order, finding, or omiission to act by
the Code Authiorit y.
SEC. 3. The Codle Authority shall be sp~ecifically charged with the
responsibility for proceeding against any member of the Industry
who shall violate any provisions of this Code.
S~ECTION 1. No provisions of this Code shall be interpreted or
applied~ in such a ma~nner as to permit monopolies, or monopolistic
practices, permit or encourage unfair competition; or elimiinate,
oppress, or discrimmiiate against, small enterprises.
A. REVISIONS AND MODIFICATIONS
SECTION 1. Thlis Codle and all th~e provisions thereof are expressly
made subjec-t to, the right of the Pr~esident? inl accordance with the
provisions of Subsection (b) of Section 10 of the Natio~nal Industrial
Recovery Act, from timne to time to cancel or mnodify nyorder,~CP
approval, license, rule, or regulation issued under T'l itleIo si c
and specifically, but without limiitation, to the righ~t of the Pres~ident
to cancel or modify his approval of this Cod~re or any1 conditions
imposed by him upon his approval thereof.
SEc. 2. Such of the prov.isionis of this Codle as are not I~reuiredl by
the National Industrial Recovery Act to be included herein, many,
with the approval of the President? be modifiedl or eliminated- as
changed circumstances or exp~eriences mlay indlicate.
SEC. 3i. By? presenlting this C~ode the Indulst1ry and othlers. assenting
thereto are not. consenlting to any~ mlodification thereof; and each
reserves the right to object independlently or jointly to any modifiedl
SEc. 41. If any mermber of the Industry is likewise enlgag~dl in part,
in any other industry or tradle, this Code shall apply only to such of~
the activities of said member as are comnprehendcedl within thie Rubber
Ti re Ma~nu factur~ing I industry.
SEC. 5. The provisions of this Code nowF or hereafter adopted
with regard to prices, discounts, deductions. allowances, extras,
commissions, or mlethodls and c or termu~s of sale shall not apply to
direct export sales. Upon appliention to the C'ode. Authority, any
member of the Industry mnay secure exemnptioni from such p~ro-
visions of this Code in r~egard to sales in th~e course of export
(i.e., sales destined ultimaotely for export) or' sales of mnaterials
used in the manufacture of products for expor~t. Thle term "ex9-
port shall include, in addition to shipments to foreign countries,
shipments to territories andi possessions of the United Sjtates except
A. ALTERATIONS AND AMLENDMECNTS
SEC:TION. 1. Any addition, alteration, or amiendm~entt to this Code
may be proposed by\ any m1emlberl of the Codel, and after receiving
the approval of fifty~-one percent of the members of the Code,
providing such members represent at least. fifty~-one p-ercent in vol-
ume,, shall be npresentedl t~hroulgh the Codle Authority~ to the Admin-
istrator for approval after such notice and hearings as he mnayt
prescribe. Provided, however, thiat any addtitio, ail te ra tlon, or
amendment which has received the approval of either a miajorityI uin
number or in volume of the members of the Code, may, after u
notice to all members of the Code, also be trannsmitted to the Admin-
istrator for his consideration.
A. FURTHER RECOMMRENDATIONS BY THE CODE AUTHORITY
S~ECTION 1. WVithin sixty day's after th~e effective dlate of th~is Code,
the Code Authority shall, after such negotiations as many be neces
sary, make recommendations to the Administrator for the equitable
adoption of a uniform Stalndard Warranty by all' members of the
Ind ust ry andl all tire retailers, jobbers, wholesalers, and special brand
distributors. In the interim, no members' shall change his present
form of war~ranty.v
SEC. 2. Since the leasing of tires to taxicab and bus companies on a
time or milengre basis is an established practice in the Industry, the
Code Authority shall make n complete study of this practice and
submit recommendations to the Administrator within ninety days
from. the approval of this Code for. the elimination of any unfair
practices wvhich may exist in this field.
SEC. ;3. Upon completion of the cost control plan outlined in
Article! V, the Code Authlority shall mnake recommendations to the
Admni nist rat or for the simpillification of the present num-ber of lines
SEc. 4. The Code Authority shall proceeds with a survey of the
productive capacity of the InduIstry. andl submit recommendations to
the Administrator not later than Alarch 1, 19341, concerning the
desirability of limiting the creation of additional productive capacity
in the Industry.
SEc. 5. The Clode Authority pledges itself to undertake imme-
diately a study of seasonal fluctuations in production and make recom-
mlendations to the Indulstr~y designed to affordl a greater stability of
bE~c. 8 The COde Authority shall, in cooperation withi the Code
Authority to be set up for thle Retail Rubber Tire and Battery Trade,
submit recommendations to the Administrator for the establishment
of a joint committee for the coordination of thle Code for this In-
dustry with that of the Retail Rubber Tire and Battery Trade, with
a v\iew to joint consideration andl proper determination of any
common problems which re~late to the distribution of tires and tubes.
SEc. 7: Within ninety days after the approval of this Code, the
Cod~e ~Authority with the approval of the members of the C~ode,
in neccordance with Article X, shall miake recommnendations to the
Admuinistrator regarding th~e e~tablishmentn of a1 complete open-price
system for the Industry.. In1 the meantime, every member of t.he
Industry,' withinl thirty d'ays after th~e appr'oval of this Clode, shall
file withl the Adminilstrator,! or his dlesilnated agfent, for his ex-
clusive iniformantion, in such~ manner anid form as he may request,
all prices, discounts, bonuses, terms, and conditions of sale to all1
customers, in order that the Admlinistrator may be fullly informed
as to condlitionsi in the Industry.
(a) TIhereafter, no member shall sell anly tires or tubes at prices
flower or at discounts or bonuses greater or on termsu or conditions
miore favorable than the prices, discounts, bonuses, terms, and condi-
tions filed as afor~esnid, unless he shall first file revisedl prices, dis-
counltS, bonuses, sterns, andl conditions with the Adlministrator to
take effect in not less than ten days from date of filing. -
A. EFFECTIVE DATE ANhD TERMIINATI~ON
SECTION i. TifS COde Skilli l6000180 efi'ectil'P, PXrlept ns Otherwcise
specifiedl herein, on the first Mionday' after it shall1 hav\e been ap-
prov'ed by the President. of the United States. It hall continue inl
effect until Julne 16, 1!,3., or until such tirne prior th~ereto whten the
President, shall, by proclamation, or thie Congress~ .hall, by joint
resolution, de~clare that the emlerg~ency~ rcog,,nizedl by? Section 1 of
the National Indlustrial Recover~y Act hans enledl.
Approved~ Code No,. 17-1.
Registryv No. S07-1-00j.
ILinlVERSITy Y OF FL ORIDA
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