Approved Code No. 351 Registry No. 1218-8-04
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON MARCH 21, 1934
WE DO OUR PART
UNIV. OF L L.
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GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code No. 351
Registry No. 1218-8-04
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Approved Code No. 351
CODE OF FAIR COMPETITION
As Approved on March 21, 1934
CODE OF FAIR COMPETITION FOR THE QUICKSILVER INDUSTRY
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 approval of a Code of
Fair Competition for the Quicksilver Industry, and hearings having
been duly held thereon and the annexed report on said Code, contain-
ing findings with respect thereto, having been made and directed to
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Adm in istratorfor Industrial Recovery
K. M. SIMPSON,
Division Adm in istrator.
March 21, 1934.
47766- 425-113- 34
REPORT TO THE PRESIDENT
The White House.
SIR: The original Code of Fair Competition for the Quicksilver
Industry was submitted August 3, 1933, by the National Quicksilver
Producers Association, an unincorporated membership society organ-
ized in 1933, representing 95% of the known members of the Industry
in volume of production. Several revisions of the Code were made
prior to the public hearing held on February 2nd, 1934. The Code
was revised during the recess of this hearing and submitted in its final
form for approval. Every person who requested an appearance was
properly heard in accordance with statutory and regulatory require-
The history of the mercury industry in the United States has
indicated considerable flexibility both in supply and demand under
the influence of price. When the price of mercury became high,
production tended to increase and consumption to fall. For many
years before 1915 the price of mercury at New York rarely exceeded
$50.00 and was generally below $40.00 a flask (76 pounds).
SIn the United States in 1869 the average yearly price was $46.00 a
flask (76 pounds). By the latter part of 1873 the price had risen to
$105.00 a flask. This was due in part to the decline of production
and the advent of pan-amalgamation of gold which increased the
domestic demand. During the next two years, with the decline of
placer gold production, the price receded, but owing to the high price
of 1873 and 1874 many new enterprises were started which came into
production during the next four years, and by 1877, the peak of domes-
tic production-79,000 flasks-was reached, and the price had receded
to $37.00 a flask. In 1883 in order, no doubt, to maintain and assist
a waning industry, a tariff was placed upon mercury amounting to
10% ad valorem. From that time a tariff has been maintained at
varying rates. In 1909 the tariff was seven cents per pound, and in
1913 it was changed again to 10% ad valorem. During the War, with
the greatly stimulated price, domestic production was slightly in
excess of 36,000 flasks. In 1923 domestic production was about 8,000
flasks, and imports amounted to 24,000 flasks. The average New York
price in 1921 was $45.00 a flask. The Tariff Act of 1922 raised the
duty to twenty-five cents a pound, but the effect upon production for
the next few years seems to have been negligible. Possibly owing to
the belief that mercury mines were exhausted in the United States, as
well as to the fact that the production of Spain and Italy dominated the
world's market, these governments made an agreement to control
production; production was pooled and sales made through a common
agency The cartel advanced the price from $70.00 to $125.00 a flask.
Prior to the organization in 1928 of Mercurio Europeo, the Spanish-
Italian cartel, the United States imported % or more of its mercury
supplies from Europe, chiefly from Spain and Italy. In spite of the
depression the cartel was able to maintain high prices for several
years which stimulated production and use of American Mercury in
the United States and temporarily reversed the proportions of foreign
and domestic metal used in this country. Inability to restrict
Spanish-Italian production, however, resulted in the accumulation of
large stocks abroad, which coupled with the disposition of buyers to
withhold commitments in an uncertain market broke the price con-
trol and sent prices below the level of American cost of production and
sharply curtailed production even in the face of a duty of $19.00 per
flask. The New York price of mercury declined from a high of $130.50
per flask in October, 1928, to $110.60 in October, 1930 and to $48.50
m December, 1932. As most American mines must receive at least
from $60.00 to $70.00 per flask to operate, suspension of mining re-
duced United States production to 12,622 flasks in 1932 compared
with 24,947 in 1931 and 21,553 in 1930, and our temporary position
as an exporter was lost.
The mercury industry of the United States is broadly 83 years old.
The history indicates a cycle of production. In 1850, commercial
production of mercury was started. As indicated in 1877, the peak
of all time domestic production of 79,000 flasks was reached. Not
only was the United States self-sufficient, but produced a large ex-
portable surplus. Since that time, under various legislative enact-
ments and at various price levels, the domestic production has been a
decreasing one. In other words, among the several points brought
out by the history of the domestic production of mercury, are the
exhaustion of the reserves of the country at various price levels; the
temporary effect of a tariff; the lack of effect of a subsequent increase of
two and one-half times the original tariff; the exhaustion of reserves
by the artificial pegging of the price by foreign producers.
According to the last decennial census of the Bureau of the Census,
the number of miners employed in the mercury industry in the United
States was slightly over one thousand. In 1930, broadly, slightly
more than 85% of the domestic requirements was the product
of domestic mines. It may therefore be assumed that were other
things equal, should the domestic supply be met by domestic pro-
duction, it would mean that slightly over 1,300 men might be em-
ployed. In 1930, the average price per flask at New York was $115.01.
The present domestic price is $67.538. If the immediate future
trends of an industry can be judged by a study of past performance,
it would seem that in the case of mercury in order to repeat the
history of 1930, a price in excess of $130.00 per flask would be required.
A fact that should be given consideration is that in the past, as has
been stated, the domestic reserves of mercury have been drawn on
at various price levels and in many cases exhausted at the then
existing price. It therefore, becomes evident that if prices were
restored to the high levels of the past, the equivalent production could
not in the future be duplicated unless technology had supplied a
means of greatly reducing the cost of production, thus making com-
mercially available material of extremely low-grade.
Production of mercury is confined to eight states and Alaska. Of
the 1929 production of 23,682 flasks (76 pounds), California supplied
43%, Nevada 20%, Oregon 15%, Washington 6% and Texas, Arizona
and Alaska the remaining 16%.
From 1922 to 1931, inclusive, the apparent domestic consumption
of mercury ranged between 20,500 flasks (1931) and 38,500 flasks
(1926). Our position has been and is that of an importer and any
variations therefrom in the past decade have been of temporary
duration. Foreign ores are richer than ours and production costs are
Because of the great decline in the production of domestic mercury
for reasons of decreased demand because of depression, plus the
influence of the European cartel, the Americnn Quicksilver Industry
has been in a very depressed and chaotic state. The Industry has
degraded to the point of almost not being an Industry in accordance
with our definition for Industry under the terms of the Act. Because
of mercury occupying a very prominent position in the list of emer-
gency War materials for the use of making fulminates, and the more
recent industrial demand for Mercury Vapor Boilers, and the hope
that protection can be given the domestic industry by way of curbing
"dumping" of distressed cartel mercury on the American market, the
application of a Code of Fair Competition for the Quicksilver Industry
has been allowed:
ARTICLE I. Purpose.-States the purpose of the Code.
ARTICLE II.--Dfin itfi;n.. Accuraltely defines specific terms appli-
cable to the Quicksilver Industry as used in this Code.
ARTICLE III. Hours.-The maximum hours are limited to forty
hours per week for employees engaged in the mining and processing
of products and labor incident thereto. Watchmen, according to the
nature of their responsibilities may be permitted to work either
eighty-four hours in any two week period or forty-eight hours in any
one week period. Office, salaried and other employees not covered
by the above who receive less than $35.00 per week shall not be
permitted to work in excess of forty hours in any one week except
that during any one week in any one month period they may be
permitted to work forty-eight hours in such week. Employees
engaged in an executive, managerial or supervisory capacity who
receive not less than $35.00 per week and employees other than those
engaged in processing or labor operations directly incident thereto
are not subject to any hourly limitations. The maximum hours
shall not apply in cases of emergencies or repairs where the safety of
life or health or the protection of property necessitates longer hours.
A 10% tolerance over the forty hour maximum is allowed to
employees engaged in the preparation, care and maintenance of
machinery and production facilities, stock and shipping clerks and
truckmen engaged in outside delivery and pick-up service. The
liniitation as to hours of a twenty-four hour day shall not apply in
such cases where the restriction of hours of labor of highly skilled
workers in continuous process would unavoidably reduce production.
No employee shall be permitted to work more than six days in any
seven day period.
ARTICLE IV. Wages.-The minimum wage for employees engaged
in mining and the processing of products or any labor incident thereto
is at the rate of 42Y2 per hour, with the proviso that in the Southern
district the minimum rate for such labor shall not be less than 30O
per hour. Such minimum rates are to apply to totally unskilled and
common labor. No person engaged in clerical or office work shall be
paid less than at the rate of $15.00 per week except that office boys
and girls may be paid a minimum of 80% of the established minimum
for office employees. The established minimum rate of pay in
Article IV, Section 1, shall apply irrespective of whether an employee
is actually compensated on a time rate, piece rate or other basis.
Provision is made for the employing of handicapped persons. Pro-
vision is also made for conmmissary employees who shall be paid not
less than 80% of the minimum wage provided for in Article IV,
Section 2. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
employees. Provision is also made for the adjustment of wages above
ARTICLE V. General Labor Provisions.-Provides that no employer
shall employ any person under 18 years of age. This Article also sets
forth mandatory provisions respecting the rights oi employees to
organize and bargain collectively. This Article also provides for
matters having to do with reclassification of employees, standards
for safety and health, the observance of State Laws, the posting of
complete copies of the Code and the matter of Company Towns and
Stores and the payment of wages.
ARTICLE VI. Establishes a Code Authority consisting of nine
members, five of whom shall be selected from the Executive Committee
of the National Quicksilver Producers Association, one of such mem-
bers shall be the Secretary of the Association and two such members
shall be members of the Industry selected by the Association, and one
other such member shall represent the nonmembers of the Association.
In addition to the nine members named above, there may be one or
three representatives, without vote, to be appointed by the Admin-
istrator to serve without expense to the Industry for such terms as he
may specify. In addition to the organization of the Code Authority,
the Powers and Duties thereof are also outlined in this Article.
ARTICLE VII. Marketing and Trade Practice Rules.-This Article
sets forth an open price schedule and trade practices for the Industry.
ARTICLE VIII. Export Trade.-No provision of this Code relating to
terms of selling, shipping or marketing shall apply to export trade or
sales or shipments for export trade.
ARTICLE IX. Modifications.-This Code and all the provisions
thereof are expressly made subject to the right of the President in
accordance with Sub-section (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule or regulation
issued under said Act. Provision is also made for recommendations
to the Administrator for modifications of this Code by any interested
party or by the Code Authority.
ARTICLE X. Monopolies.-No provision of this Code shall be so
applied as to permit monopolies or monopolistic practices or to elimi-
nate, oppress or discriminate against small enterprises.
ARTICLE XI. Effective Date.-This Code shall become effective
ten days after its approval by the Administrator.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of Indus-
try for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by elimi-
nating unfair competitive practices, by promoting the fullest possi-
ble utilization of the present productive capacity of Industries, by
avoiding undue restriction of production (except as may be tempo-
rarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating Industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major Industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
Sub-section (a) of Section 3, Sub-section (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicant association
is an industrial association truly representative of the aforesaid In-
dustry, and that said association imposes no inequitable restrictions
on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies or
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, therefore, this Code has been approved.
HUGH S. JOHNSON,
MARCH 21, 1934.
CODE OF FAIR COMPETITION FOR THE QUICKSILVER
To effectuate the policies of Title I of the National Industrial
Recovery Act, this Code is established as a Code of Fair Competition
for the Quicksilver Industry, and its provisions are the standards of
fair competition for such Industry and are binding upon every member
Wherever used in this Code or any supplement appertaining thereto,
the terms enumerated in this Article shall have the meanings herein
defined unless the context shall otherwise clearly indicate.
SECTION 1. The term "President" means the President of the
United States of America.
SECTION 2. The term "Act" means Title I of the National Indus-
trial Recovery Act approved by the President, June 16, 1933, and any
SECTION 3. The term "Administrator" means the Administrator
for Industrial Recovery.
SECTION 4. The term "Industry" as used herein means the mining
of and/or processing of ores in which quicksilver (mercury) represents
the principal recoverable constituent and/or the sale of any mercury
by such producer or processor which includes without limitation any
person or corporation keeping a subsidiary or controlling relationship
or one of joint ownership with any such producer and/or processor.
SECTION 5. The term "Member of the Industry" includes all those
engaged in the Industry, either as an employer or on his or its own
SECTION 6. The term "Employee" means and includes anyone
engaged in the Industry in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of such
compensation, except a member of the Industry.
SECTION 7. The term "Employer" means anyone by whom any
such employee is employed or compensated.
SECTION 8. The term "Flask" as used herein means a standard
container for quicksilver containing 76 net pounds avoirdupois of
SECTION 9. The term "Executive Committee" as used herein
means the Executive Committee of the National Quicksilver Pro-
SECTION 10. The term "Secretary" means the Secretary of the
National Quicksilver Producers Association.
SECTION 11. The term "Southern District" as used herein means
the States of Texas, Arkansas, Louisiana, Mississippi, Tennessee and
ARTICLE III-HouRs or LABOR
SECTION 1. laxti inum Hours.-On and after the effective date of
this Code, no employee shall work or be permitted to work in excess
of forty (40) hours in any one week or eight (8) hours in any twenty-
four (24) hour period, except as herein otherwise provided. A
normal work day shall not exceed eight (8) hours.
SECTION 2. Hours For Clerical And Office Employees.-On and
after the effective date of this Code no person employed in clerical or
office work shall be permitted to work more than an average of forty
(40) hours per week during any one month period, nor more than
forty-eight (48) hours in any one week. A normal work day shall
not exceed eight (8) hours.
SECTION 3. Erception as to Hours.-The limitation as to hours of
labor, as specified in Sections 1, 2 and 4 of this Article III, shall not
apply t tthe following:
(a) To employees engaged in emergency maintenance or emergency
repair work, involving breakdown, or the protection of life or property;
provided that in any such special cases at least one and one-half (1%)
times the normal wage rate for any employee so employed shall be
paid for all hours worked in excess of the forty (40) hours in any one
week or eight hours in any one day; provided that this overtime pro-
vision shall not apply in cases of catastrophes involving loss of life.
Such special cases, however, shall be reported to the Code Authority.
(b) Nor to outside sales or sales service men; nor to persons in a
managerial, executive or supervisory capacity who receive not less
than $3%35.00 per week;
(c) Nor to watchmen who, according to the nature of their respon-
sibilities, may be permitted to work either eighty-four (84) hours in
any two-week period; or forty-eight (48) hours in any one-week
period, provided such employees shall have at least one day's rest in
each seven day period;
(d) There may be a tolerance of 10% additional hours over the
forty (40) hours in any one week for employees engaged in the prep-
aration, care and maintenance of machinery and production facilities,
stock and shipping clerks, and truckmen engaged in outside delivery
and pick-up service; provided, however, that at least one and one
half (11) times the normal wage rate for any employee so employed
shall be paid for all hours worked in excess of eight (8) hours per day
or forty (40) hours in any one week;
(e) The limitation as to hours of a twenty-four (24) hour day shall
not apply to such cases where restrictions of hours of labor of highly
skilled workers in continuous processes would unavoidably reduce
production, provided, however, that such employees in any such
special cases shall not. work more than forty-eight (48) hours in any
one week; and provided that in such special cases at least one and one
half (12) times the normal wage rate for any employee so employed
shall be paid for all hours worked in excess of eight (8) hours per day
or forty (40) hours in any one week.
SECTION 4.' Standard Week.-No employee shall be permitted to
work more than six days in any seven-day period.
SECTION 5. Employment By Seceral Employers.-No employer shall
knowingly permit any employee to work for any time, which, when
totaled with that already performed with another employer or em-
ployers in this Industry or any other Industry, exceeds the maximum
SECTION 1. A.lrtiniium Wages.-On and after the effective date of
this Code no employee, except as herein otherwise specified, shall be
paid in any pay period less than at the rate of 42Y per hour; provided,
however, that in the Southern District the minimum rate that shall
be paid in any pay period shall be 300 per hour.
SECTION 2. Clerical and Office Employees.-No accounting, clerical,
office, sales or service employee working on a weekly basis in any
office shall be paid less than at the rate of fifteen ($15.00) dollars per
week; provided, however, that office boys and girls and messengers
shall be paid at a rate not less than 80% of the minimum hereinabove
specified; and provided further that the number of such boys and
girls and messengers so paid shall constitute not more than 5% of the
total number of such employees of any office of any one employer,
but in any case each employer shall be entitled to one such employee.
(a) Commissary employees, excluding cooks, shall be paid not less
than 80% of the minimum wage ($15.00) provided for in Section 2 of
this Article, and provided further that the total number of such com-
missary employees so paid shall constitute not more than 5% of the
total number of employees in.any camp, but in each case such
employer shall be entitled to two such employees.
SECTION 3. Minimum Wages.-This Article establishes a minimum
rate of pay for any pay period which shall apply, irrespective of
whether an employee is actually compensated on a time rate, piece-
work, or other basis.
SECTION 4. Female Employees.-Female employees performing sub-
stantially the same work as male employees shall receive the same
rate of pay as male employees, and, when they displace male em-
ployees they shall receive the same rate of pay as the men they
SECTION 5. Wages Above The Minimum.-Equitable adjustments
above the minimum in all pay schedules of employees shall be made
within thirty (30) days after the effective date of this Code by any
employer who has not heretofore made such adjustments under the
National Industrial Recovery Act. In no event, however, shall
hourly rates be reduced. Within sixty (60) days after the effective
date of this Code each Member of this Industry shall make a report
of such adjustment whether made prior to or subsequent to date of
approval of this Code to the Code Authority.
SECTION 6. Handicapped Persons.--A person whose earning capacity
is limited because of age, physical or mental handicap, or other
infirmity, may be employed on light work at a wage below the mini-
mum established by this Code, if the employer obtains from the State
Authority, designated by the United States Department of Labor, a
certificate authorizing such person's employment at such wages and
for such hours as shall be stated in the certificate. Such authority
shall be guided by the instructions of the United States Department
of Labor in issuing certificates to such persons. Each employer shall
file monthly with the Code Authority a list of all such persons em-
played by him, showing the wages paid to, and the maximum hours of
work for such employee.
ARTICLE V-GENERAL LABOR PROVISIONS
SECTION 1. Child Labor.-On and after the effective date of this
Code, no person under eighteen (18) years of age shall be employed in
the Industry. In any State an employer shall be deemed to have
complied with this provision as to age of employees if he shall have on
file a certificate or permit duly signed by the Authority in such State
empowered to issue employment or age certificates or permits showing
that the employee is of the required age.
SECTION 2. Provisions From The Act.-(a) Employees shall have
the right to organize and bargain collectively through representatives
of their own choosing, and shall be free from the interference, restraint,
or coercion of 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
(b) 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 organization of his own
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
SECTION 3. Reclassification of Employees.-No employer shall reclas-
sify employees or duties of occupations performed, or engage in any
other subterfuge for the purpose of defeating the purposes or provisions
of the Act or of this Code.
SECTION 4. Standards for Safety and Health.-Every employer
shall make reasonable provision for the safety and health of his em-
ployees at the place and during the hours of their employment.
Standards for safety and health for this Industry shall be submitted to
the Administrator by the Code Authority within six months after
the date of approval of this Code.
SECTION 5. State Laws.-No provision in this Code shall supersede
any State or Federal Law which imposes on employers more stringent
requirements as to age of employees, wages, hours of work, or as to
safety, health, sanitary or general working conditions, or insurance,
or fire protection, than are imposed by this Code.
SECTION 6. Posting.-All employers shall post and keep posted
complete copies of this Code, and all amendments thereto, in con-
spicuous places accessible to employees.
SECTION 7. Company Town and Stores.-Employees other than
maintenance or supervisory men, or those necessary to protect prop-
erty, shall not be required as a condition of employment, to live in
houses rented from the employer. No employee shall be required, as
a condition of employment, to trade at a store owned or specified by
SECTION 8. Payment of Wages.-An employer shall make payment
of all wages in lawful currency or by negotiable check therefore, pay-
able on demand. These wages shall be exempt from any payments for
pensions, insurance, or sick benefits other than those voluntarily paid
by the wage earners, or required by State Laws. Pay periods for
wages shall be at least semi-monthly, and for salaries at least once per
month. Employers shall agree not to withhold wages.
ARTICLE VI--ORGANIZATION, POWERS AND DUTIES OF THE CODE
ORGANIZATION AND CONSTITUTION
SECTION 1. A Code Authority is hereby constituted and shall
consist of nine voting members. Five of such members shall be
selected from the Executive Committee of the National Quicksilver
Producers Association. One of such members shall be the Secretary
of the National Quicksilver Producers Association. Two such mem-
bers shall be members of the Industry (not members of the Executive
Committee) truly representative of the various interests of the Indus-
try and shall be elected by the National Quicksilver Producers Asso-
ciation. One such member shall be elected by the members of the
Industry who are not members of the National Quicksilver Producers
Association, and shall be truly representative of such non-members.
The selection of all elected members of the Code Authority shall be in
a fair and equitable manner to be approved by the Administrator.
In the event that the selection of the non-member of the National
Quicksilver Producers Association is not made within thirty days
after the effective date of this Code, such member shall be selected
by the Administrator.
In addition to the above membership, there may be one, and not
more than three members, without vote, and without compensation
by the Industry, appointed by the Administrator to serve for six-
month or twelve-month terms, as he may specify, from the date of
SECTION 2. Each trade or industrial association directly or in-
directly participating in the selection or activities of the Code
Authority shall, (1), impose no inequitable restrictions on member-
ship, and (2), submit to the Administrator true copies of its Articles
of Association, By-Laws, Rules and Regulations, and any amendments
when made thereto, together with such other information as to
membership, organization, and activities as the Administrator may
deem necessary to effectuate the purposes of the Act.
SECTION 3. In order that the Code Authority shall at all times be
truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may prescribe such
hearings as he may deem proper; and thereafter if he shall find that
the Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an appro-
priate modification in the method of selection of the Code Authority.
SECTION 4. Members of the Industry shall be entitled to participate
in and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting to
and complying with the requirements of this Code and sustaining their
reasonable share of the expenses of its administration. Such reason-
able share of the expenses of administration shall be determined by
the Code Authority, subject to review and approval by the Adminis-
trator, on the basis of volume of business and/or such other factors as
may be deemed equitable.
SECTION 5. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor shall
any member of the Code Authority be liable in any manner to anyone
for any act of any other member, officer, agent or employee of the Code
Authority. Nor shall any member of the Code Authority, exercising
reasonable diligence in the conduct of his duties hereunder, be liable
to anyone for any action or omission to act under this Code, except
for his own wilful misfeasance or nonfeasance.
POWERS AND DUTIES
SECTION 6. Subject to such rules and regulations as may be issued
by the Administrator, the Code Authority shall have the following
further powers and duties, the exercise of which shall be reported to
the Administrator and shall be subject to his right, on review, to
disapprove any action taken by the Code Authority. If the Admin-
istrator shall determine that any action of the Code Authority or
any agency thereof may be unfair or unjust or contrary to the public
interest, the Administrator may require that such action be suspended
to afford an opportunity for investigation of the merits of such action
and further consideration by such Code Authority or agency pending
final action which shall not be effective unless the Administrator
approves or unless he shall fail to disapprove after thirty days'
notice to him of intention to proceed with such action in its original
or modified form.
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisions of the
(b) To adopt By-Laws, Rules and Regulations for its procedure
and for the administration and enforcement of the Code.
(c) To obtain from members of the Industry such information and
reports as are required for the administration of the Code and to pro-
vide for submission by members of such information and reports as
the Administrator may deem necessary for the purposes recited in
Section 3 (a) of the Act, which information and reports shall be sub-
mitted by members to such Federal or State agencies as the Adminis-
trator may designate; provided that nothing in this Code shall relieve
any member of the Industry of any existing obligations to furnish
reports to any government agency. No individual reports shall be
disclosed to any other member of the Industry or any other party
except to such governmental agencies as may be directed by the
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for herein,
provided that nothing herein shall relieve the Code Authority of its
duties or responsibilities under this Code and that such trade asso-
ciations and agencies shall at all times be subject to and comply with
the provisions hereof.
(e) To make recommendations to the Administrator for the coordi-
nation of the administration of this Code with such other Codes, if any,
as may be related to the Industry.
(f) To conrperate with the Administrator in regulating the use of
any N.R.A. insignia solely by those members of the Industry who
have assented to, and are complying with, this Code.
(g) To recommend to the Administrator further fnir trade practice
provisions to govern members of the Industry in their relations with
each other or with other industries and to recommend to the Admin-
istrator measures for industrial planning, including stabilization of
ARTICLE VII-MARKETING AND TRADE PRACTICE RULES
SECTION 1. Price Scheddulcs.-Every member of the Industry within
ten (10) days after the effective date of this Code shall file with the
Code Authority the price or prices and terms or conditions of sale at
which he is offering his products for sale; this original filing to become
effective on the date of such filing. Any member of the Industry
desiring to change the prices of his products or terms or conditions of
sale, shall do so by notifying the Code Authority of the desired
changes, which shall become effective upon the date of such notice.
All schedules of prices, terms and conditions of sale shall be available
to members of the industry and to the public.
SECTION 2. Trade Practice Rules.-The following trade practices
are declared to constitute unfair methods of competition between
members of the Industry, and no member of the Industry shall use
any of them, either directly or indirectly, through any officer, agent
or employee. The violation of any one or more of these, or any
further trade provisions which hereafter may be established, shall
be deemed a violation of this Code.
(1) The secret payment or allowance of rebates, refunds, commis-
sions, credits or unearned discounts, whether in the form of money
or otherwise, or the secret extension to certain purchasers of special
services or privileges not extended to all purchasers on like terms and
(2) The prepayment of freight charges with the intent or with the
effect of granting discriminatory credit allowance.
(3) The allowance in any form of adjustments, discounts, credits
or refunds, for the purpose or with the effect of altering retroactively
the price quoted in such manner as to create price discrimination.
(4) The pre-dating or post-dating of any invoice or sales contract
except to conform to a bona-fide agreement entered into on th6
(5) The false marking of any product of the Industry or the inten-
tional misrepresentation of analysis of content or of any size or
weight of standard flask or the making of, causing or permitting to
be made or publishing of any false, misleading or deceptive state-
ment by way of advertisement, invoice, or otherwise concerning the
size, quality, quantity, character, nature, preparation or origin of
any industry product.
(6) The defamation of competitors by falsely imputing to them
dishonorable conduct, inability to perform contracts, questionable
credit standing, or by other false representation or by false dispar-
agement of the grade or quality of their goods.
(7) The unauthorized use in written or oral form of trade-marks,
trade names or slogans used by a competitor.
(8) No member of the Industry shall induce or attempt to induce
the breach of an existing contract between a competitor and his
customer or source of supply, nor shall any such member interfere
with or obstruct the performance of such contractual duties or
(9) No member of the Industry shall ship goods on consignment
except where peculiar circumstances of the Industry require the
practice. Such exceptions shall be defined by the Code Authority
with the approval of the Administrator, and shall apply alike to all
members of the Industry.
(10) No member of the Industry shall require that the purchase or
lease of any goods be a prerequisite to the purchase or lease of any
(11) No member of the Industry shall give, permit to be given, or
directly offer to give anything of value for the purpose of influencing
or rewarding the action of any employee, agent or representative of
another in relation to the business of the employer of such employee,
the principal of such agent or the represented party, without the
knowledge of such employer, principal or party. This commercial
bribery provision shall not be construed to prohibit free and general
distribution of articles commonly used for advertising except so far
as such articles are actually used for commercial bribery as herein-
(12) No member of the Industry shall publish or circulate unjusti-
fied or unwarranted threats of legal proceedings which tend to or have
the effect of harassing competitors or intimidating their customers.
Failure to prosecute in a reasonable time shall be evidence that any
such threat is unwarranted or unjustified.
(13) Aiding or abetting any person, firm, association, or corporation
in any unfair practice.
(14) Procuring, otherwise than with the consent of any member of
the Industry, any information concerning the business of such member
which is properly regarded by it as a trade secret as held confidential
within its organization, other than information relating to a violation
of any provision of this Code.
(15) Knowingly shipping a lower grade of material than is described
in the contract or order.
(16) Deviating from the published and previously established
specifications, for the purpose of influencing a customer or prospective
(17) Failing to file price schedules or changes therein, as required
by Section 1 of this Article.
(18) Selling of any Industry product by a member of the Industry
at a price below the open, filed or publicly announced price schedules
of such member, or deviation from the conditions of sale contained in
such schedules filed pursuant to Section 1 of this Article.
ARTICLE VIII-EXPORT TRADE
No provision of this Code relating to terms of selling, shipping or
marketing, shall apply to export trade or sales or shipments for export
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regula-
tion issued under said Act and specifically, but without limitation, to
the right of the President to cancel or modify his approval of this Code
or any conditions imposed by him upon his approval thereof.
SECTION 2. Such of the provisions of this Code as are not required
to be included therein by the Act may, with the approval of the
Administrator, be amended as provided in Section 3 hereof, in such
manner as may be indicated by the needs of the public, by changes in
circumstances, or by experience; all the provisions of this Code,
unless so modified or eliminated, shall remain in effect until the
expiration date of Title I of the Act.
SECTIOn' 3. An amendment may be proposed by any interested
party either to the Code Authority or directly by or to the .Admin-
istrator. All proposed amendments shall be referred to the Code
Authority, who shall give members of the Industry an opportunity
to be heard thereon, and thereafter the Code Authority may make
such recommendations thereon as is deemed proper, provided, how-
ever, that when approved by the Aldministrator as necessary to
effectuate the policies of the Act, after such notice and hearing as he
may prescribe, any proposed amendment shall thereupon become
effective as a part of this Code.
SECTION 4. The Code Authority may make recommendations for
modifications of this Code to the Administrator which shall become
effective as a part of this Code upon approval by the Administrator
after such notice and hearing as he may prescribe.
No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discriminate
against small enterprises.
ARTICLE XI-EFFECTIVE DATE
This Code shall become effective beginning ten days after its
approval by the Administrator.
Approved Code No. 351.
Registry No. 1218-8-04.
UNIVERSITY OF FLORIDA
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