Code of fair competition for the pyrotechnic manufacturing industry as approved on December 7, 1933 by President Roosevelt

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Title:
Code of fair competition for the pyrotechnic manufacturing industry as approved on December 7, 1933 by President Roosevelt
Portion of title:
Pyrotechnic manufacturing industry
Physical Description:
p. 591-605 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

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

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Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 611-02."
General Note:
"Approved Code No. 148."

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Source Institution:
University of Florida
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All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004938332
oclc - 63654770
System ID:
AA00008121:00001

Full Text






NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION



PYROTECHN IC

MANUFACTURING INDUSTRY


For sale by the Superintendent'of Domanments, Washington, D.C. - Price 5 rents


Approved Code No. 148


Registry No. 611--02


AS APPROVED ON DECEMBER 7, 1933
BY
PRESIDENT ROOSEVELT


1. Executive Order
2. Letter of Transmittal
8, Code





UNITED STATES
GOVERNMENT PRINTING OFFICE'
WASHINGTON :1933

























This publication is for sale by the Superintendent of Documents, Government
Printing Offic~e, WCashington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, On.: 504 Post Office Building.
Birmingham. Ala.; 257 Federal Building.
Boston, lunss.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North W~ells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas,, Tex.: Chamber of Commerce Building.
Detroit, M~ich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
K~ansas City, 11o.: 1028 Ba~ltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
M~emphis, Tenn.: 229 Federal Building.
11finineapolis, luinln.: 213 Federal Building.
N'ew Orleans, La.: Room 225-A, Customhouse.
New York, N.Y'.: 734 Customhouse.
Norfolk, Va.: 406 Enst Plume Street.
Philadelphia, Pa.: 933 Commercial Trust Building.
Pittsburghi, Pa.: Chamber of Commerce Building.
'Portland, Oreg.: 215 New Post Office Building.
St. Louis, M~o.: 506 Olive Street.
San Francisco. Calif.: 310 Custombouse.
Seattle, Was8h.: 800 Federal Building.














Approved Code No. 148


CODE OF FAIR COMPETITION
FOR THE

PYROTE CHNIC MANUFACTURING INDUSTRY

As Approved on -December 7, 1933
BY

PRESIDENT ROOSEVELT




Executive Order

An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Pyrotechnic Mlanufacturing Industry,
and hearings having been held thereon and the Administrator having
rendered his report containing an analysis of the said code of fair
competition together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
code of fair competition complies in all respects with the pertinent
pirovisions -of title I of said act and that the requirements of clauses
met :
NOWT THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority rested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Admlinistrator and do order that the said code 0f fair
competition be and is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended :
HUGH S. JoHNSON,
A dm inistfrato r.

THE RHITE 110USE,
December 7, 193.


(591)


256870--244-148 ---85





NOVEMBER 27, 1933.
The PRESIDENT,
The ~Ifhite House.
*SIR Thlis is a report on the Code of Fair Competition for the
Pyr~otechnic Alanufacturing Industry in the United States, a hearing
on which was conducted inl Washington on the thirty-first of Octo-
ber 1933. in accordance with the provisions of the N;ational Indus-
trial Recovery Act.

PROV'ISIONS OF THE CODE AS TO WAGES AND HOURS

This Code provides for a maximum workweekr of forty (40) hours
or eight (8) hurs in any twenty-four (24) hour period in the Com-
mercial Fireworkis Division, except that factory employees may be
permitted to work a maximum of forty-eight (~48) hours per week
for seasonal periods not exceeding two months in the first six-month
period and one month in the second six-month period of any calendar
year.
In the Display Fireworks Division a maximum workweek of fortyV
(40)) hours or eight (8) hours in any twenty-four (241) hour period
is provided, except that for the period from April 15 to September
15 factory employees may be permitted to work a maximum of forty-
eight 48) hours per week.
InteFusee Division a maximum workweek of thirty-five (85)
hours or seven (7) hours in any twenty-four (24) hour period is pro-
vided.
Exceptions to these limitations on working hours are provided for
executives, supervisory staffs, and clerical workers receiving at least
$35.00 per week. Further exceptions are provided for traveling sales
persons, watchmen, and persons engaged on emergency maintenance
and repair work, clerical workers receiving less than $35.00 per week,
janitors and boiler-house employees, and truckmen.
In all divisions overtime shall be paid for at the rate of time and
one third.
This Code provides for a minimum wage of thirty-seven and one
hal (7\*) ent pr hour for males and thirty-two and one half
(321-?_) cents per hu o eae nteCmeca ieok
Division forty (40)f cents per hour for males and thirty-five (35)
cents per hour for females in the Display Fireworks Division, and
fortyv (410) cents per hour in the Fusee Divis~ion. This establishes
minimum rates of pay regardless of whether an employee is com-
pensated on a time-rate, pieceworki, or other basis.
Female employees performiinor substantially the same duties as
male employees shall receive at Feast the mniniminn wage prescribed
for male employees.
No person under eighteen (18) sears of age shall be employed in
the industry.
(592)







593


With permission of State Authorityv, persons physically or men-
tally handicapped may be employed below the minimum wage
provided.
Based upon changes in minimum pay necessitated byg the fore-
going paragraphs of this Article each employer shall in each estab:
lishment make fair and equitable readjustment of all pay schedules.
ECONOMIIC EFFECT OF THFE CODIE

The attached Code covers the. manufacturing, assembling and dis-
play of all kindls of fireworks andi the manufacture of fusees, railway
torpedoes, andi fares. The industry has developed from small home
manufacturing unit.s into large concerns with a considerable amount
of invested capital and emp~loyrs at the present time alpproxim"tely
1,500 wage earners indicat~ing a, decline, based on. the 1929 level of
employment, of about 500 persons. The industry is divided into
three bDivisions: Commercial Fireworks, which includes the m~anlu-
facture of all kinds of fireworkis such as roman candles, pin wcpheels,
sparklers, and flares; Display Fireworks Division, which includes
the business of manufacturing, assembling, and displaying of ~fire-
works at exhibitions, fairs, andi pagaeants, etc.; and the F'usee Divi-
sion, which includes the manurfactur~e of pyrotechnic signals com-
monly known as fusees, a~nd railway torpedoes used as warming or
distress signals by various transportation units, particularly for the
protection of life and prope~t~y.
The industry, with the exception of the F'usee Division, is highly
seasonal. The product of the Commercial Fireworkrs Division is
intended for use on two days, namely, the Fourthi of July and
Christmas. The production peak for the Commercial Fireworks
Division comes in Mlay and June in preparation for the Fourth of
July, followed by a lull until the fall revival in preparation for the
Christmas business.
In the Display Firework~s Division the production peak comes
during the summer and early fall months, when fireworks are dis-
playedb at various exhibitions, fairs, and pageants. Production in
the Fusee Division depends entirely upon the prosperity of our
transportation systems and is governed by the economic condition
of the country.
The Pyrotechlnic Indlustry reached its peak in 1929, at which time
the volume of production was valuedl at approximately $6,584,000.
Since that time there has been a stes.dy decline. in the number of
establishments and in production. Possibly the most serious causers
of this decline have been restrictive municipal legislation and de-
structive competitive practices within the industry.
Imports of fireworks over the period from 1929 to 1931 amounted
to approximately 11 or 12 percent of thle domestic production. These
importations have affected the industry seriously. Unfair practices
in the distribution of imported fireworks also have contributed to a
certain extent to the demoralization of the industry.
The Code contains a number of unfair trade practices which are
to be prohibited in order to eliminate destructive, competition now
prevalent. These provisions should enable: the manufacturers to
proceed on a sound, competitive basis.







594


In order to maintain the proper differential between the three
Divrisions separate Wan.ge and Hour provisions are established for
each. The Code will establish a work wFeek of 35 hours in the Fiusee
Division. In the Commercial Firewrorks Division the C~ode will re-
duce the hours from 50 a2 week to an effective 42~-hour week, as ap-
proximately 50 percent. in the past have operated in excess of 48
hours, which is the maximum permitted for the seasonal peak, and 70
percent in the past have worked in excess of the 40 hours maximum
established for other periods. The Display Fireworks Division will
be reduced from a 60- to an effective 44-hour week, as 50 percent in
the past have worked over 48 hours, which is the maximum permitted
for the seasonal peak, and 80 percent in the past have worked in
excess of the 40 hours maximum established for the other period. In
the Fusee Division approximately 30 percent of the employees have
worked in excess of t~he 35 hours maximum established for this Divi-
sion. The reduction of hours throughout the country should mean
an incr~ea~s of employment to approximately the 192~9 level wit~h an
additional 200 employees during the seasonal peaks in the Commer-
cial Fireworkis and Display Divisions. Further increases in employ-
ment should be noted in the Fusee Divisioni with increasing opera-
tions of our transportation system. This means a definite reversal
of the descending trend of employment since 1929.
The rates of wages established in the Commercial Fireworks
Division will increase the pay of 85 percent of these employees, and
increase pay rolls 42 percent. In the Display Fireworks Division
the minimum rates of pay established will benefit 65 percent of their
employees and will result in an increase in pay rolls of from 30 to 35
percent.. Approximately 53 percent of the employees in the Fusee
visionn will receive an increase mn rates because of the mmunuum
established for this Division with an estimated 30 percent increase
in the pay rolls for this Division.
It is evident therefore that not only will the Code increase employ-
menit but when coupled withl the resultant increase in purchasing
power and the elimination of destructive competitive practices will
result in the stabilization of the industry and an increase in purchas-
ing power.
It is believed that for the ultimate good of the industry that the
control prescribed and permitted in the Code is essential. It is
highly important, however, that the government representation in
the Administration and operation of the provisions of this Code
exercise carefully its functions.

FINDINGS

The Admninistrator finds that (a) The Code as recommended com-
plies in all respects with the pertinent. provisions of Title I of the
Act, including, without limitation, subsection (a) of Section 7 and
subsection (b) of Section 10 thereof; and that
(b) The applicant groups impose no inequitable restrictions on
admission to membership therein and are trulyv representative of the
Pyrotechlnic Industry; and that







595

(c) The Code as recommended is not desi grned tod promote monmopo-
lies or to eliminate or oppressi small enterprises and will not operate
to discriminate against them, and wvill tend to effectuate the policy of
Title I of the National Indust~rial RecoveryT Atct.
It is recommended, therefore, that this Code be immediately
adopted .
Respectfully.
HUGGH S. JoBNso,SN
Administrator.














CODE OF FAIR COMPETITION
FOR THE

PYROTECHNIC MANUFACTURING INDUSTRY


ARTICLE I -PURPOSE

To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are submitted as a Code of
Fair Competition for the Pyrotechnic Mianufacturing Industry, and
upon approval by the President, shall be the standard of fair com-
petition for such industry and shall be binding upon every member
thereof.
ARTICLE II-DenINrrrows

TIhe term "' Pvrotechnic Industry ",! as used herein, includes the
business of manufacturing and the assembly and display of all kinds
of fireworks, and the manufacture of fusees, railway torpedos, and
flares.
The term Fireworks includes all articles produi~rng audible
or visible display, and includes Roman candles, pin wheels, Catbherine
wheels, sk ~rockets, sparklers, bombs, caps, jerbs and shells, flares,
bengal and colored lights of all kindls, solut~es and firecrackers of
all kinds, smoke candles, smoke lights, signal lights, and all kinds
of novelty articles containing chemicals to be exploded or ignited.
The term Commercial Fireworks Division "! includes the manu-
facture sof fir~eworks.
The term Display FirewTorks Division "' includes the displaying
of fireworks at exhibitions, t.he manufacture or assemblyofre
works solely for t~he purpose of display, and presenting firewok
spectacles and pageants.
T~he term "i Fusee Division means the manufacture of friction-
cap, igni~ti;ng, time-bulrning pyrotechnic signals, commonly known as
fusees, used as warninga or distress signals, particularly for the po
tection of life and property by various transportation units, ando
railway torpedos.
The term employee "' as used herein includes anyone engaged in
t~he! jJindsryF ir nr any cpacty receiving. comlpensation for his services,
irrespective of the nature or method of payment of such compensation.
]The term employer as usedl herein includes anyone by whom
any such employee is comnpensat~ed or emnployed.
The term member of the industry includes anyone engaged in
the industry as above defined, either as an employer or on his own
behalf.
The terms President ", "'Act ", and L'Administrator ", as used
herein, shall mean, re~spectively, the President of the United St~ates,
(596)







59)7


the Na~tional Indlustr~ial Precoveryr Act, andl the Aidministrator of
said A4ct.
For t.he purpose of this C'ode thle t~ermn "jobber shall mean a,
whlolesale dealer; the term stockjobber sh~all mean a jobber who
maintains a permalnlent war'ehoullse, stockls fireworksr, employs a sales
force, and ships mlerchandlise to his cus~tomners from such stock; the
term dlrop-shipment jobber shall mean a jobber who does not
stock; firewforkls but sells to a r~etailer~, thle goods being shipped direct
to such retailer by a mannu facturller, stockjobbe~r, or branch.
The term branch shlall 'mean a sep~arate establishment of a
member of thle ind~ustry~ located in a dliffer~ent place from his main
offce, where a separate sales force is manintained~ and a stock of
merchandise for sales purposes is; car~ried.
ARTICLE ITI--H0URS OF L~ADon
SECTION 1. Pr'olisionP Appl~licable: to thei Commzcr~cal~ Firetoork~s
Division on~ly.--Except as hereinafter andl in Section 4 of this
Article providedl, no emnployee shall be p~ermiittedl to work~ in excess
of forty hlours in any~ one w\eek or eigh~t. hours in any twn~ty-four-
hour period-, except th~at factoryr employees may be permitted to
workl a maxnimumll of for~ty-eighlt hours per w~eeki for seasonal periods
not exceedling~ twFo mnllthls inl the firs~t. Six-m1onthl period and one
molrnth in thle s~econdl sixi-monthi period of any~ calendar year.
SiEC. L;. ProisiL;B ons Apli/(Cable` toi ther DiP)lay Fiiretoork Division
on/U-l--Ex~celt, as h~ereinafter and inl Section 4l of this Article pro-
vidled, no emnployee shllnl be pe~1rmitted to w~ork; in excess of forty
hours inl any onle week~ or eight hours in any twrenty-four-hour period,
except that for th~e per~iodc froml Alpril 15 to September 15 factory:
employees may) be per~mittedl to wrork a maximlum of forty-eight
hours a week and employees receiving $35 at week or more eiingage
in t~he actual w-orkl of attendingr to or sup~ervising ipayo ie
wForks at an exhibiition p~ctnele or pagreant miay be permitted to
work~ until a dlisplayit upon whlichl they are engaged is concluded.
SEC. 3. Pl'Ol~ieFO8 AppliCabhle to thi FU8ce D~ivision only.--Except
as in Sect~ion 4 o-f this Artic~le providedl, no empn~loyee shall be per-
mitted to wrork in excess of thirty-fie hours in any one week or
seven hours in any tw~enty-four hour per~iodl.
SEC. 4l. Pr'l'~oisin App~licable to A11U;lDivisions~c of tlhe lIndustry --
(a)l Executives, supervisor y staff anid clerical w-orker~s reteiving
$35.00 per weekr or more, t~raveling sales persons, watchmen, and
pers~ons~ engaged il n emergncy,, mainte~nance, andc repair wrorkr, shall
be exempt from the prov.isions of Sections 1, ", andi 3 of this Article,
provided, however, thiat nemergency, maitinteinance, andc repair work
in excess of the maximum hours heretinablovee p1rovid:ed shall be coml-
pensated by overtime pyn~ment at the rante of nlot. less than timne and
one thirdl, andi. provided further, that emier~gncy emplloynr-~nt by
reason of fires and 'or explosions shall be compecnsatedl by payment
at not less t.hun the regular rate of pay for thle employees so eng~agedc.
(b) Clerical w-orkers receiving~ lejss than $35.(10 per weekr mayb
permitted to work an averiagP of 40i hours per' weeC~k durinrr any thre
months' period, but not mor~e thanl 48 hours in any one week.
(c) Janitors and boiler house emlployees may~ be permitted to w~ork
Sa maximum of forty-eigh~t hours per wreek.
2568'P"--244-1-48 -33 2







598

(d) Truck-men may be permitted to worke a maximum of forty- ;
four hours per week. w~ith a t~en percent tolerance during the seasonal
periodic provided in Sections 1 and 2 of this Article.
SEC. 5. For' the purpose of exceptions contained in Sections 1 and
2 of this Airticle, each member of the industry, who is a member of
both t~he Commercial Fireworks Division and Display Fireworks
Division, shall classify his plant or plants, by notice in writing to
the Code Author~ity B~oard, as corning within either the Commnercial
Firew-orks Div~ision or the Display Fir~eworks Division.
SEC. 6~. In the Commercial Firework~s Division time, in excess of
eight hours a day and forty- hours per week for employees whose ~
hours are limited in Section 1 of this Article, shall be paid for at time
and one thir~d.
ARTICLE IV-TWAGCES

SaCTroM 1. Conmll.ercitl Firew~o~rkls Dzivisionl..-No male employee
shall b~e paid at less than the rate of 371,4i cents per hour. No female
employee shall be paid less than the rante of 321.*E cents per hour.
SEC. 2. D~is~play Firewlorks Divisionz..-No male! employee shall be
paid at less than the rate of 40 cents per hour. No female employee
shall be paid at less than the rate of 35 cents per hour.
rSnc. 3. Fus~ee D~irisio.--No emlployee shall be paid at less than the
rate of 40 cents per hour.
S~EC. 4. This Article establishes minimouni rates of pay regardless .
of whether an emnployvee is compensated on a time-rate, piecework, or
other b~asis.
S~EC. 5. Femanle emplloyees performing substantially th~e same duties
as male employees shall receive at least the minimum wage herein
prescribed for male employees.
SEC. 6i. EmIployers shall adjust wrage schedules in equitable relation
to the mlinimum hlour~ ly rates pr~ovided in this Airticle, so far as such
adjustmentsj have not been madle subsequent to June 16, 1933. Each
members of the Industry shall pr~omptly report all such adjustments
to the Code Aluthor'ity Boardl.
ARTICLE V-GCENERAL LBBon PBovsI8ows

SEcTION 1. No p)erson under eighteen years of age shall be employed
in the industry.
SEc. f2. Emploryees shall have the right to organize andl brarain
collectively thrloughl representatives of their owfn choosing, atnd shall
be free from the interference, restraint, or coercion of employers of
labor or their agents inl the designation of such representatives, or in
self-org$anization? or in other concertedl activities for the purpose of
collective bargaining or other mutual aid or protection.
SjEC. 3. NO emp~loyee and no onie seeking employment shall be re-
quired as a, condition of employment to joini any company union or to
r~efrain fromt joining, organizing, or assistingi a labor organization of
11s OWD c 100Slnga.
S~c.. 4. Employers shasll comply with the mnaximum hours of labor,
minininimu rates of pay, and other conditions of employment, approved
or prescr~ibedl by the President.







599


SEC. 5. Within each Sitate thlis Code sihall not s~uper~sede any la~ws
of such Stat~e imposing more stringenrt requirements on employers
regulating t~he age of emlplo~yees, wa~ges. h~our~s of wporkn, or: health fire,
or gecneral wonrking conditions thian under this~i Code.
SEC. 6. There shall be no evansion of this Code by: reclassification of
the functions of workers. A w~orker sihall not be includled~ in any of
the exnception~s enumerated in Arlticle III hereof unless the identical
functions which he performls w~ere identically classified on June 16,
1933.
SEC. '7. No employer shall krlnoingly engag (re any emp'p,~9""loyee for any
time for which, w~hen totalled~ with that already pefrmed for
another employer or emplloyer~s, exceeds the maximum permitted
herein.
SmC. 8. An employers shall mnake paymn-ent' of wages due in lawrful
currency or negotiable check; payable on demand. Wages shall be
paid~ at teP endl of t.he regular pay~-ronll period. These wagesC shall be.
exemnpt from any payments for pecnsions, insurance, or sick benefits
other than those v-oluntarily paid byr the wage earner.
SEC. 9. A p~er'son whose learning cpne~nit.y is limited because of age
or physical or mnental hanndicap may~ be emlployed on light workl at a
wage below t~he mlinimlumn establlishled by this Code if the employer
obtains from the State Authlority, dlesignatedr by the United States
Departmuentt of Labor, a certideante author~izingr his employment at
such wages and for such hours as shall be stated in this certificate,
p~rovidedl that the number of surch employees shall not exceed five
pe~cent. (5%,) of thle total number~I of employees on the pay roll.
Each emnployer shall file with~ the Clode Authority Board a hist of all
such persons emp~loyed by~ hliim.
SEc. 10. Each em~ploer shall post in conspicuous places accessible
to emuployvees; copies of Airticles III! IV', and V of this Code.

ARTICLE VI- ADM)JINISTHNT'ION

SECTION 1. code Aullthority Boa~d.--To further effectua!te the
policies of the A~ct, a C'ode Au~lthorlity shall be established and known
as the Code Autholirity B3ordI of the. Pyrotechlnic: Ma:nufac~tur~ring
Industry. Th~e indlusitry~ shll~l be classifiedt into three dlivisionls known
as (1) C'omimerialo Firewsor~ks Division, (2) Display Firewoirks
Division, and (3) Fuisee Divisioni.
Addlitiojnal divisio-I~Ins ma e organized3, or existinI div~isio~ns con-
solidated, upon r~ecommendato1,7icn of the Planning and F'air Practice
Agencies of the dlivisions offectedl, and the Code Authority Board,
with th~e approval of th~e A~dminist rator.r
SjEC. 2. Oliythrizi.EG//O trri CION~fiif; fOi Of aOde AButhority Boacrd~.--
The Code Authlority Boalrd shall be composedl of membe\:rsl of the
industry. Three miembers shllR1 be elected ~by each r~espective dlivision
accrdngto th~e following rules and~~ subject to the approval of the
President.
1. Eachi members of thle indrustryr shall have one vote in each divi-
sion of which he is a m~ember.
2. The vote of a. majorityl il nulmbjer of mnembiers~ of the division
representing in the agglregate morule thanr one half of the gross~
sales of suchl division in the previous enle~ndalr year shall be nlecessary
to elect..







600


The Code Aulthlority Board shall net. as a coordinating agency for
the divisionis of the indlustry. The President may appomnt not more
Tha he nib i~ r~it vtt he Code Authority Board.l Cr Xtoi\ Brl so organized is hereby constituted t~he
agency for cooperatin'g with the AdTministrat~ion or the Administra- ;
tor' as an admninist rative, planning, aind fair-practice agency for the r
Pyrotechnic Malnufacturing~ Industry. Such agency may from time
to time present to the Aditministrantor recolmmendations based on con-
dlitions in the industryv as they miay develop, which will tend to
effectulate the operation of t~he provisions of this Codep and thre policy
of thle Act.
SEC. ;3. Dj/P/8ionral Plann,~ing arnd Fa.ir Practice Agenic~ies.--E ac
division of th~e Pyrlotechlnic Mannufacturine;~ Industry shall, by t~he '
method above~ prescribed for election of members of the Code Au-
thor~ity Board, elect. its own separate andl distinct dlivisional Plalnninga
and~ Fair Pr~actice Agency. Each such dlivisional Planning anld Fair
Pra~ctice ,Agency shall present in wriiting to the Code Authority
Board, and each member thereof individually, its recommendations.
If the Code Authlority Boardt fails to dlisap~prove thereof within
tw-renty~ days.r after the samle shall have be~en presented, said recom-
miendations shall be decemedl approved by it. If the Code Authority
Board(: disappr'oves thereof, then and in that event the divisional
Planning andl Fair Pranctice Agency shall be entitled to present its
retcommnne nd~ati o~nsi direct to the Alm in ist ra tor for his approval. Ree-
ommlen~dations madle under this Article shanll no~t become ;ffectivre
until approved by the Admninistrator..
Ealchl d-iviiol n may car~ry\ out th~e alpp~\rove recommnendaltions of
its Planniing and Fair Prnectice Ag~ency, subject. to supervision by the
(code Author~ityl oardl, all to th~e end that each division mnny be
self-govelnrning inl all probtlems,~i. including trade terms and trade
practices, r~elating exclusively to itself.
In o~rdler thiat the Code Authiorityv Boar~d sall a1,t all times~ he truly'
represr'entativ-e of the indlustry and in other respects comnply it~h the
provisions of the A~ct. the Administrattoor may! provide suc~h~ hierings
us he mayn! dleem proper; anld ther~enfter if he shall find- that the Code
Authloritv B~oardl is nort truly retpresentativ.e or dloes not in other
resp'ects comply with the p~rovisionsi of thle Act, mayl~ require an
approplriate mlodifivCatin in thle mlethodl of selection thecreof.
SI-:c. 41. Powe"rS' and Dutl~,ie of the fco de AuthoritU Board~.--The
Codle Auith~ority Boail~ rd sll have- thle following~ du~ties andl powers to
the exte~nt p~ermnittedd by tihe Ac~t, -Lubljec(t tto the( Ilightl of the Adminis-
trator on r.eview to dliuappr~ov-e or! miodify~ anl action taken by it:
(a) The C'odel\ Authflority Board- shiall amnrisiiiter' t~he Code and
shall miaintain all netivities plertinent therecto, such als obtaining from
emnployer~s reports requrested~ byv the President or his authorized
repr~esentative in respectt to wnges, hour.~1s of labor, conditions of em-
ployment, and number of emnployees. In addition to the informat-
tion reqjuired- to be cubmnitted to the C~ode A~uthority D3oard, there
shall be furnished to governm~ent agencies such statistical in formation
as t he Admin ist rator may dleem niecessa ry for thle pu1rposes recited
in Section 3 (n) of the Act..
(b) M~embersl of the industry shanll be entitled tor participate in
andc share thel benefits osf the~ activitiesi of t.hie Code Authlority BIoard ~
and to participate in the selctcion of the members thereof by assent-







601


ing o ad cmplingwith the requirement s of this Code and sus-
taing theird reaomynable share of th~e expenses of the administration.
The reasonable share of the expenses of the admriinist ration shall be
determined by th~e Code Authority Board, subject to review by thne
Administrator, on the basis of volume of business and/or such other
factors as may~ be deemed ~equitable to b~e tak~en into consideration.
(c) The Code Aut~hority Board shall investigate and report to the
Administrator as to the importation of competitive articles into the
United States of Amierica, in substantial quantities or increasing
ratio to domestic production, or under such terms or conditions as to
render ineffective or ser~iouslyr endangrer the maintenance and en-
forcementt of this Code, andi shall mak~e comp~lainlt on behalf of the
Pyrotechnic Industry, under the provisions of Section 3 (e) of the
A~ct with respect thereto.
SEC. 5. Tr'ade Isscic-ation~.--Each trade or industrial association
directly or indirectly part~icipat.ingr in t~he selection or activities of
the Code Authority Board shall (1) impose no inequitable restric-
tions on membership, and (2) submit to t~he Administrator true
copies of it~s articles of association, by~laws, regulations, and any
amendments wvhen made thereto, together with such other inform~a-
tion as to membership, organization, and activities as the Adminis-
trator may deem necessary to effectuate the purposes of the Act.
AnRICLE VII-TRADE PRACTICES

SECTION i. PFO-L840%8r Applica~ble to all Divisionzs of thes
Indu~stry.--
A. Sau~s BELOW COST.--Under the direction of the divisional
Planning and Fair Practice Agencies stnudies shall be made in an
effort to determine fair and uniform cost-finding procedures for
members of the respective divisions of the industry. If and when
such cost-finding systems are recommended by any Planning and
Fair Practice Agency and are approved byV the ]President or his
authorized representative, sales below cost,! so dletermined, shall be
unfair competition.
B. It shall be unfair competition for any mannufactureri engagred
in the industry--
(1) To give rebates, refunds, commissions, credits, or unearned
discounts, whether in the form of money or otherwise,, or to extend
to certain purchaser's special services or privileges not extended to
all purchasers on like terms and conditions; give guarantees against
decline in prices or protection against price advances, except in the
Fusee Division;
(2) To indulge in commercial bribery in anyv form, such as the
giving of gratuities, commissions, or rewards to purchasing agents
or other employees of customers or by lavish entertainment of such
employees;
(3) To misrepresent merchandise with respect to size, substance,
weight, or quality, or to use false, deceptive, untrue, or .misleading
statements in advertising, printing, or otherwise;
(4) To maliciously entice awray the employees of a competitor for
the purpose of hampering, injuring, or embarratssingr a com-petitor in.
his busmess; but nothing in this parngrraph sh~all prevent any emn-







602


ployee from offering his services to another employer, nor prevent any
employer from employing the employee of another employer.
(5) To defame a competitor by falsely imputing to him or it dis-
honorable conduct, inability to perform contracts, questionable credit
standing, or by any other misrepresentation calculated to mislead or
deceive customers.
(6) To disparage falsely the quantity, grade, quality, or sub-
stance of a competitor's products by any statement calculated to mis-
lead or deceive customers.
C. PInacy or STYLES AhND DE~SIGNs.-Copying of lines, items, or
effects originated by a competitor during the calendar year in which
they were originated, shall be unfair competition. Any member of
the industry claiming to have originated a design, style, pattern, or
effect, mlay register the same by furnishing plans and or models
thereof to the Code Authority Board together with an affidavit siet-
ting forth his exclusive claim thereto and he shall have the exclusive
right to the use thereof for two years from the date of such registra-
tion. The fact that such registration has been made shall be prima
facie evidence that the use of such designs, style, pattern, or effect
by a competitor is a violation of this Code.
D. 1\fATERIALs. No domestic materials shall be used in the manu-
facture of pyrotechnics unless thle same have been manufactured under
and in accordance with the provisions of a code of fair competition
duly approved by the Pr~esident, or the President's Reemnployment
Agreement.
SEc. 2. Provisions A pplicable to the Comt mrcial Firewosrks
Division~. only--
A. TERMrS OF SALE ---FUI1 detailS Of all termiS Of Sale, including date
of delivery and payment, quantity, price, freight, terms, etc., shall be
set forth in a written order and shall be strictly adhered to.
B. TRADE Discourrs.--The following trade discounts shall prevail
throughout the division:
1. Regu~lar trade discount shall be fifty percent (50%0) of list price,
f.o.b. Alain Factory.
2. On all drop shipment orders from the factory there shall be an
additional service charge of not less than ten percent (10%o) of the
net amount of the invoice.
3. Subject to the approval of the Administrator, if and when the
jobbers dealing with members of this division shall, through a duly
approved code of fair competition or otherwise, agree to sell on sub-
sta ntiaIlly simnilar terms:
a. Stock orders to jobbers from branches shall be at price, f.o.b.
Branch, not less than factory price plus actual transportation charges
fr~om main factoryI plus ten percent (10%r).
b. On all drop shipment orders from branches there shall be an
additional service charge of not less than five percent (5%0) of the
net amount of the invoice.
c. No manufacturer shall allow any discount on quantity sales to
retailers in excess of t~wenty-five percent (25%0) of list price, f.0.b.
shipping point.
4. No manufacturer shall ship in carload or by truck from factory
to any jobber merchandise especially packed or marked for distribu-
tion to such jobbers' retail customers; provided, however, that







603


nothing in this section shall bte so const~ltrue as toe prohibit any mranu-
facturer from includling,, inl any en~larlon shipmetnts to more than. one
jobber.
C. TERMrS OF PAYMlENT.- OOU0 S sold for' tile FOurth of July trade
shall be billed for payment. July 10th net ensch. Goods sold for the
Christmas trade shall be billed for paymlent Janluary 10th net cash.
Il. f cash payment is mnade before t.he due date as herein provided, dis-
count at the1 ra~te of one: percent (161.) per month shall be allowiped
for such cash prepaym"ent up to a maimnin um allowance of six percent
(6).On all g~oodls not sold for t.he usall Fourth of July and
Clhristmas trad7e t.he ter~ms of pa'menlt. halll be thirty days net cash
with an allowa~nce o~f two percent (FT.~) forl pn!yment within ten days
of date of shipment.
D. CONSIGNMrENTS AhND RETURNED nlERCHaNDISE.--NO goods shall
be sold upon conrsignmernt. and nlo goods shanll be sold with any under-
st.andinga, open or secret, that paymen~lt therefore shall be deferred
beyondl the timle of t.he regular sterns of payment. Me1~r~chan dcise
;I delivered by the manufacturer within thle tbime agreed upon and in
compliance w~itl t~he specifientions of an order shall not be accepted in
return by the mranufacturerr except with the approval and consent of
jl ~the divisional Planningr andl Fair Practice Age~ncy, subject to review
? ~by the Adminisitrator.
E. BLANKET ORDERS.--RO 'equlir'emlen~ conltrlacts or blanket orders,
that is, orders for a grrross amount w~it.hout specifying the kind and
quantity of goods to be delivered, shall be neceptetd by any member of
this division.
F. STAPLE Goon8 ENo PRICES.--The ilvislonal Planning and Fair
Pract~ic~e Agency~~ is emlpowered~ to d~esignate certain items that are
generally man~ufc~turedl by t.he division as staple goods. On items
so designated it sha~ll, subject to t~he a~pprovanl of th~e Administrator,
prescribe limits or size, weight, and others specifications necessary
for a1 reasonable standtardization. At t~he beginning of each season,
not later than Alugust 1st for the Christmas trade and Novermber 1st
for t~he Fourth of July trade, each manufacturer shall file in writing
with the Cole A~uthorityl Board a full and- complete schedule of net
selling prices, sulch schedule: to be acc~ompaniedi by a full description
of t.he items as to w-eightb, size, and other det~ails. No net selling
prices or specifientions applying to such items may be changed dur-
Ing the season to figures on any item low-er than the lowest net sell-
ing price on file with the Code Authority Board without giving ten
.days' notice in wTritingr to t~he divisional Planning and F'air Practice
Agency. Upon the filing of such reduced prices, the divisional
Planning and Fair Practice Agency~ shall immediately notify all
members of the division of such r~edulction. Nothing herein con-
tained shall permit the sale of any item in violation of the provisions
of subdivision A of Section 1 of this Article.
G. DELIV'ERED PRICEs.--Nothingr herein contained shall prevent any
manufacturer from selling similar articles at the same delivered
price as any other manufacturer, unless such sale shall violate sub-
division A of Section 1 of this Article.
H. TRANSACTIONS BETWEEN ATEMIBERS OF THE DIvIslolv.--The pro-
visions of this Arlticle as to terms of sale, terms of payment, freight,







604


freight terms, and trade discounts shall not apply to transactions
between members of this division, nor to sales of caps to manufac-
turers of pistols.
I. DISTRESS nIlERC'HANDISE.-iDvOenOrleS wh-ich must be converted
into eash to meet emergencies and abandoned lines may be disposed
of in such manner and on such terms and conditions as may be
prescribed by the divisional Planning and Fair Practice Agency,
subject to review by the Administrator.
AnnICLE VI[IT STABILIZATION

SECTION 1. Cornen.er~cial and Display Firewborks Div~isiona.--In
view of t~he surplus of production facilities in these divisions, before
anly addirtionls to or expansions of present muanufactur~ing plants or
equipment shall be made or any new manufacturing plant shall be
constructed, application shall be made to the Administrator, who
shall take such action after notice and hearing as may seem neces-
sary to effectuate the policy of the Act.
SEC. 2. Fissee D~ivi~sion.--Until, in the opinion of the Administra-
tor, the demand for the products of the industry from the railroads
of the Unlited States cannot adequately be met by t~he use of existing
production facilities, no additions to, or expansion of, present manu-
facturing plant or equipment shasll be made and no new manufactur-
ing plant shall be constructed unless t.he Administrator, after notice
and hearing, shall find that public necessity and convenience require
same.
AnncoLm IXI-M-RODIFICATION

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 National Industrial
Recovery Act, fromn time to time, to cancel or modify any order,
approval, license, rule, or regulation issued under Title 1 of said
Act, and specifically, but without limitation, t~o t.he right of the
]President to cancel or modify his approval of this Code or any
conditions imposed by him, upon his approval thereof.
S~EC. 2. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes of circum-
stances, such modification to be based upon application to the Ad-
miinistrator and such notice and hearing as he shall specify, and to
become effective on approval of the President.

AnnICLE X--RPONOPOLIES, ETC.

No provision of this Code, shall be so applied as to permit monop-
olies or monopolistic practices, or to elimlinate, op~press, or descrimi-
nate against small enterprises.
AnnICLE ~XIC--PIRICE INCREASES

Whereas the policy of the Act to increasee real purchasing power
wcill be made impossible of consummation if prices of goods and
services increase as rapidly as wages, it is r~ecognizedl that price mn-







605


creases should be delayed and that, w~hen m~ade, the same should,
so far as reasonably possible, be limited to actual increases in the
seller's cost.
ARTIcLE XII--EFFECTIVE ~DAT

This Code shall become effective on the first Monday after its
I~:approval by the President.
Approved Code No. 148.
Registry No. 611-02.

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