NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON MAY 11, 1934
WE DO OUR PART
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Approved Code No. 425
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Approved Code No. 425
CODE OF FAIR COMPETITION
As Approved on May 11, 1934
CODE OF FAIR COMPETITION FOR THE 1IANGANESE INDUSTRY
An application having been duly made pursuant. to and in full
coimplianee 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 Ma nga ne.se Industry, and hearings having
been duly held thereon and the annexed report on said Code con-
taining findings with respect thereto, having been made and directed
to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Adminin-trator for Industrial Recovery,
pursuant to a authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects with
the pertinent provisions and will promote the policy and purposes
of said Title of said Act; and do hereby order that said Code of
Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
K. M. SIMPasN,
Division A dm n ia itraor.
Mlay 11, 1934.
68379-- 544-66-- 34
REPORT TO THE PRESIDENT
The White House.
Sin: The original Code of Fair Competition for the Manganese
Industry was submitted on August 24th, 1933, by the American
Manganese Producers Associa ltion. an unincorporated membership
society organized in 1927, representing 90% 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 January 26,
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 requirements.
Tite Mainganese Induitry includes the development, mining, mill-
ing, conc entrating and beneficiating of domnc.tir ores. About 95%'
of the manganese production is consumed in ferrous metallurgy
and the remainder in the dry battery and chemical industries.
Before the World War the domestic production of manganese
ore was very small compared with the domestic consumption. The
average annual output from 1900 to 1914, inclusive, was about 5,000
long tons; imports during the same period averaged about 223.000
long tons. At the time of the World War the requirement, for
manganese in the United States expanded, and some of the trans-
port of imported ore, was seriously menaced. Domestic production
grew under the impetus of exceptionally high'prices and urgent gov-
ernmental requ,.sts for incre:aed, output. In 1918 it reached a peak
of nearly 306,000 tons, which was about 3%5, of the total manganese-
ore rtiqutirements in the United States during that year. This
state of affairs terminated abruptly with the signingg of the ai mistice.
Prices declined immediately, and many war-time contracts were
cancelled; in cni.-I.quence much domestic production became un-
profitable. and a number of producers who had developed properties
at a con.idlerable cost, expecting the war to last much longer, faced
Under postwar conditions doie.tic production dwindled rapiilly
and by 1922 amounted to only 13,000 tons. Meanwhile, a demand
for tariff protor-tion had develop,-d. Proponents of the tariff claimed
that a domeI tic supply of such an important raw material as man-
Lane e ore was e(-ti.ntial to the country in war and that the experi-
ence during the World War indicated that a substantial mangannese-
ore inlduitry c('old be dtvclnped under proper tariff protection.
The tariif act of 1922, whiih bec:anme effective during the latter
part of that. yNear, establi..led a lduty of onm. cent per pound of con-
tained m1111gnese on imported ores containing in excess of 30t,'. of
manganese,. The effect of this act was inliinelit:1il.y reflected in the
domestic price of manganese ore. Domestic production of man-
ganese ore rose to a postwar peak of 98,000 tons in 1925, which was
equivalent to about 14;' of the domestic requirement. in that year.
Nearly half of the 1925 output was derived from the rhodochrosite
ores of the Butte district, and about a fifth of the total represented
the production of battery ores fioin the Phillipsburg (Mont.) dis-
trict. Imports increased from 425,000 ton, in 1922 to 615,000 tons
The increase in domestic production from 1922 to 1925 was ac-
companied by a steady increase in prie, but by 1902 the production
of foreign ores had increased to such an extent that there was .(-Cvre
competition for the world's markets and the price of mianaranese
began a steady decline.
While the tariff was being considered in 1929, Congress was re-
quested by the manganese-ore producers to increase the tariff on
manganese ore and to extend the duty to ores containing less than
30% of manganese. It was claimed that the domestic industry had
progressed under the protection granted it in 1922 and that further
protection was needed to put the procesmes being developed to treat
low-grade ores on a co(mlnercial basis. Opponents of the tariff
contended that the record of production under seven years of pro-
tection proved the contention made by them in 1922-that the known
reserves were insufficient to provide an adequate supply of man-
ganese, even with tariff protection. They also contended that the
imposition of high duties to sustain production from low-grade ore
bodies was uneconomical and placed an unnecessary burden on the
steel industry. The price of Imanganese continued to decline steadily
The Manganese Industry enjoys a unique position in that its
product is an essential constituent in the manufacture of steel. A
substitute may be developed ultimately, but under existing prices
and metallurgical technique there is none. The ratio of manganese
consumption to steel production is about 14 pounds to one ton.
For use in ferrous metallurgy, 1manganese is converted into various
alloys; ferromanganese, containing 78% to 82- manganese; spiegel-
eisen, containing Ic to 22 ; manganese. silicomanganese, containing
555 to 70' manganese; and silicospiegel, containing 18% to 22"
manganese. About 90< of the manganese consumed is in the form
The Industry is confronted with the problem of reviving the pro-
duction of low grade manganese ores and the attempt to develop high
grade ores. It is generally conceded that the reserves are inadequate
to develop a representative manganese, industry in this country.
Efforts have been made to beneficiate low grade ores. The costs of
production, plus subsequent treatment, are too high to meet competi-
tion of foreign ores even with an increase in the present tariffs.
Investigations indicate that the domestic manganese industry is
incapable of producing a substantial amount of ferro-manga.nese
grade ores at world prices.
The tariff acts of 1922 and 1929 have done but little to stimulate a
domestic manganese industry.
Because of the stagnant condition of the industry, an industry in
the strict interpretation of the act does not exist. Because of the
hfct that manganese does occupy a pivotal position as an emergency
war material, and also because of the fact that the industry did,
under stress of war demands and high prices, produce up to 38% of
our requirements, the sponsor's application for a Code of Fair Com-
petition for the Manganese Industry has been granted.
Article I. Purposes. States the purpose of the Code.
Article II. Definitions. Accurately defines specific terms ap-
plicable to the Manganese Industry as used in this Code.
Article III. Hours. The maximum hours are limited to forty
hours per week for employees engaged in the processing of products
and labor incident thereto. Watchmen shall be permitted to work
either 84 hours in a two week period or 56 hours in any one week
according to the nature of their responsibilities, with one day rest in
every seven. Office, salaried and other employees not covered above
who receive less than $35.00 per week shall not be permitted to work
in excess of an average of forty hours per week during any one
month, nor more than 48 hours in any one week. Employees engaged
in an executive, managerial or supervisory capacity who receive not
less than $3:.00 per week are not subject to any hourly limitations.
The maximum hours shall not apply in cases of emergencies or repair
where safety of life or health or protection of property necessitates
Article IV. Wages. The minimum wages for employees engaged
in the processing of products or any labor incident thereto is at the
rate of 400 per hour love ground and 471/2 per hour underground
in the Northwestern Section, and 4,0 per hour above ground and 45(0
per hour undeirgoiiund in the Northern Section, and 230 per hour
above ground and :5 per hour underground in the Southern Section
except as otherwise provided. The minimum rates shall be construed
as the hiring rates applying to co,,nion or totally unskilled labor;
and all otlier classes of labor, including piece workers, shall be com-
pensated at rates above these mininumis-. The established minimum
rate of pay for the work performed in any pay period shall apply
irrespective of whether an employee is actually compensated on a
time rate, piece rate, or other basis. Provision is also made for the
employing of handicapped persons. No person employed in clerical
or office work shall be paid less than at the rate of $15.ii) per week,
exc''pt that offik c boys and girls and np,.-e..cirs may be paid at a rate
not less than 80, of the minimum paid office employees.
Arti-cle: V. General Labor Provisi(ons. Provides that no employer
shall employ any person under 16 years of age and that no person
under 18 years shall be employed at operations or occupations which
are hazardous in nature or da;ngeVroii to health. This Article also
sets forth the mandatory provision respecting the rights of emp loyees
to organize and bargain collectively. This Article also provides for
matters having to do with reclas.sification of empllloyees, standards for
safety and health, the observance of State laws and the posting of
complete copies of this Code ,o that they are acces ;ible to employees.
Article VI. Administration. Establishes a Code Authority con-
sisting of nine mntimbers, five of whom shall be the executive com-
mittee of the American Manganese Prodiucrs Association. Four
other members of the Industry (not members of the executive com-
mittee) truly representative of the \various interests of the industry to
be elected by a fair method of selection, approved by the Adniniis-
trator. In addition to the organization of the Code Authority, the
powers and duties thereof are outlinedl, in this Article.
Article VII. Marketing and Trade Practice Rules. Sets forth
fair trade practices for the industry, as also :-etting forth open price
schedules which are effective iliniidiately aft!r filing.
Article VIII. Export Trade. No provision of this Code relating
to sterns of selling or prices, shipping .or i:l'rktillg, shall apply
to export trade or sales or shipments for export trade.
Article IX. Modification. This Code and all its provisions
thereof are exptresly made subject to the right of the Pr,-ident, in
aiccordtlnce 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 i-uedl under said Act. Provision is made that an
iniendilnnt, may be proposed by any interlcted party. Provision is
also made so that the Code Authority may make recommendations
for modifications of this Code to the Administrator which shall be-
come effective as a part of this Code upon approval by the Adminis-
trator after such notice and hearing as he may prescribe.
Article X. No provision of this Code shall be so applied as to
permit monopolies or monopolistic practices or to eliminate, oppress
or discriminate against small enterprises.
Article XI. Effective Date. This Code becomes effective begin-
ning 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 eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 employ-
ees, 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 limita-
tion Sub-section (a) of Section 3, Sub-section (a) of Section 7, and
Sub-section (b) of Section 10 thereof, and that the applicant associa-
tion is an industrial association truly representative of the aforesaid
industry, and that said association imposes no inequitable restrictions
on ad mission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designedl to and will not elimlinate or oppress
i~,fl;ill iliterprises and will not operate to discriminate against them.
(f) Those enga,,ged in other step; of the economic process have not
been (<1 pri\ved of the right to be heard prior to approval of said
For these reIt:lon, therefore, this Code has been approved.
R pect fully,
Hu-GI S. JOHNSON,
MAY 11, 1934.
CODE OF FAIR COMPETITION FOR THE MANGANESE
ARTICLE I-P RI'I Ps.S
To effectiate the policies of Title I of the National Indiiltrial
Recovery Act, this Cod.: is established as a Code of Fair Competition
forl the MaIngainei. Industry and its provisions are the standards of
fair competition for iivh Industry and are binding upon every
ARTICLE II-D- Ii-1 N ri T(IN
Wherever used in this Code or any supplement appertaining
thereto. the terms enumerated in this Article shall have the meanings
herein defined-l 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" as used herein means the National
Industrial Recovery Act approved by the Presidenit June 16, 1933.
SECTION 3. The term "Administrator as used herein means the
Admin i nitrator for Industrial Recovery.
SFCII oN 4. The term "3Meiber of the Indiutry as used herein
includes all those engaged in the Industry either as an employer or
on his or its own behalf.
SECTION 5. The term Employee as used herein includes anyone
engaged in the Industry in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of such
cocmpensIiction. except a member of the Industry.
SECTION 6. The term "Employer as iiu.ed herein means anyone
by whom s.uch employee is employed or compensated.
SECTION 7. The term Industry as used herein include the
mining in the United States, including territories, of Manganese Ore
and/or the concentrating of and/or beneficiating of ores in which
manganese constitutes the principal rcr\-vei' Ible constituent of eco-
nomic value, and the original sale of such products by the one
producing and/or manufacturing the same either directly or
indirectly through subsidiary and/or affiliated companies.
SECTION 8. The term "Association as u.ed herein includes the
America n Manganese Producers Association, an unincorporated
membership society organized in Washington, D.C. on August 2,
1927, and having its principal office at the National Pre. Building,
Washington, D.C., and such other Trade A.soeiations as may
hereafter participate in the activities under this Code or in the
selection of the Code Auithority.
SECTION 9. The term Executive Commnittee as used herein
shall mean the Executive Committee of the American Manganese
SE(IT)N 10. The term "Northwestern Section" as used herein
shall include California, Colorado, Idaho, Monitana, Nevada, Oregon,
North Dakota, South Dakota, Utah, Wa4shington and Wyoming.
SECTIx 11. The term Southern Section as -used herein
:lhall include Alabama. Arizona, Arkan-~a, Florida, Georgia, Ken-
tucky, Louisiana, Mi,-i-sippi, Mi.-so.ri, New Mexico, North Carolina,
Oklahoma, South Carolina, Te!inei-S:.e, Texas, Virginia and West
Virginia. Territories shall be considered to be in the Southern
SECTION 12. The term Northt.rin Section as used herein shall
include all other states in the United States on the North American
Continent having Ma inganese-bearing depo.-itL in which !.nga;.ese
represents the principal reocv-erarble constituent of economi,- value.
SECTION 13. Popldlation for the purposes of this Code shall be
determined by reference to the Federal Census of IJ!18).
SECTION 1. .1axinmuim Hours.-On and after the effective date of
this Code, no employee shall be permitted to work in execs,. of
forty (40) hours in any one week or eight (8) hours in any twenty-
four (24) hour period, except as herein otherwise provided.
SECTION 2. Hours for Cl .;,ciul in,, Offire. 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 .vvrage of
forty (40) hours per week during any one month period nor more
than forty--ight (48) hours in any one week.
SECTION 3. Exceptions As To Hours.-Limiitai;ion of hours as
provided for in this Article shall not apply to traveling salesmen,
tt cllncinans, (highly skilled factory workers are not to be classed as
technicians), nor to (a) per:.-ois in a managerial, executive, or
supervisory capacity who receive not less than $35.00 per week, nor
to (b) employees- engaged in (niiergcncy maintenance or emergency
repair work involving breakdown or protection of life or property;
provided that such emergency overtime work in excess of forty (40)
hours in any one vwt.tk, or in excess of eight (8) hours in any one
day, shall be p.lid for at the rate of time and one half.
ECI'rIIlN 4. Liiiitatioti, as to hours of a twenty-four (24) hour
day period .shall not apply to very .-pecial ca-e, where restrictions
of hours of labor of highly skilled workers in cont inuous prlce)L'ees
would unavoidably reduce production, provided, however, that such
employees in any case shall not work more thln forty-eight (48)
hours in any oine week and that such (.lnrgc cy overtime in exces
of the normal eight (8) hours, in any oni day or forty (40) hours
in any one week shall be paid for at the rate of time and one half.
SECTI' N 5. There ..hall be a tolerance of 10%; additional hours over
the forty (40) hours per week or eight (8) hours in any twenty-four
(24) hour day for (a) employees engaged in the preparation, care,
and iiriaiiten;iiice of plant, machinery, a nd production facilities, (b)
fireiien and engineers, and (c) shippers and delivery employees, pro-
vided, however, that any sch work by any such employee in excess
of forty (40) hours per \cwek or eight (8) hours per day shall be com-
penaii'ed for at the rate of time and one half.
SECTION 6. WatchJi en,, .-Watcllllmlen dependlin on the nature of
their responlsibilities, may i'wo'rk not milre than eighty-four (84)
hours during any two (2) week period o.r not iiinor than fifty-six
(56) hours in any 1)n1 week.
SECTION 7. En17l,.*',:! 'n n. )Iy Several Employ'-r.,.-No employer
.shall knovinglly per-iiit ;iin employee to work for any time which.
when totalled with that alr, .,ly performed with another employer
or (employers in this Industry, _.x'eds4 the inmaxiniumn p)eriiitt-.d
SECTH N 8. St,..'ard Week.--No employee shall be pe'rmittle to
work more than six days in any eveni day period.
SE:('Tx,'; 1. .Mlliim lm Wages.-On and after the effective date of
this Code no employee shall be paid in any lip y period less than at
the rate of forty (40) cents per hour "above ground and forty-
.seven and one half (471-) cents per hour underground" in the
North W,-terin Section, and forty (40) cents per hour above
grol!und :;fd forty-five (45) rent, per hour ;uiid.irrouind in the
Northern Section and thirty (30) cents p.'r holi "above ground"
and thirty-five (35) 'nts per hour u!lonirgruund in the Southern
Section rxcpt as otherwise lHi(r in: provided. These minimum rates
liereinabove shall be constrni:-d as the hiring rates applying to com-
nI(on or totally unskilled labor. Other classes of labor, including
pieco worker.-. shall be compensated at rates above these minimums.
The minimum rates in effect on July 1,t. I w. .:. which vwere. above these
minimnuims specified, shall in no case be reduced.
SECTIctN 2. PI';re Work Comlpe,,c.tion.-The < .tallilied minimum
rate of pay for any pay jp.-'iid shall apply irrespective of whether
an employee is actually compensated on a time rate. piece rato, or
SECTION 3. 1f oes above Minimumn.--Eqiitalle adjustments in all
pay schedules of employees shall be made within thirty (:10) days
after the effective date of this Code by anyi employer who has not
heretofore ol:ae such adju-timnts- udMler the Nation.il InutI Itrial
Recovery Act. Withlin sixty (n0) days after the effective date of this
Code each member of this Industry shall make a report of i.chi
adjustment whether made prior to or sibt.equiint to date of approval
of this Code to the Code Authority.
SECTION 4. Ci''eald ad Offir Eploiit .*'.s.-No anciiiinting, clerical,
office, sales or service employee in any ,tlii s-hall be paid less than
at the rate of fifteen ($15.00) dollars per week, provided, ]iow\\ver,
that office boys and girl.s and messengers may be paid at a rate not
less than 80r; of such minimum, and provided further, that the num-
ber of such boys and girls and messengers so paid shall constitute not
more than 5$i~ of the total number of such employees in any one office
of any one employer, but in any case such employer shall be entitled
to one such employee. No employee named in Section 4, Article IV,
in regular employment shall have their weekly wage reduced on
account of any reduction of weekly hours of employment made
because of the requirements of Section 1 of Article III.
SE.TI',N 5. Female Employees.-Female employees performing
iub1,stItially the same work as male employees shall receive the same
rates of pay as male emploiyee-, and when tl-, y displace male employ-
ees they sball receive the -amen rate of earnings as the men they
SECTTIN 6. Hiii,,l0ajppir Id Persons.-A person whose earning capac-
ity is limited because of ,ie or physical or mental handicap may be
employed on light work at a wage below the minimum established by
this Code if the employer obtains from the State Authority desig-
nated by the United States Dt)p.rtment of Lalior, a certificate author-
izing his employment at such wages and for such hours as shall be
stated in the certificate; such authority shall be guided by the in-
structions of the United States Department of Labor in issuing such
certificates; each employer shall file with the Code Authority a list
of all s-uch persons employed by him.
ARTICLE V-G-ENERA\L LABOR PR\OVSIoNS
SF:CT(ll 1. Child Labor.-No person under 16 years of age shall
be employed in the Industry. No person under 18 years of age shall
be employed at operations or occupations which are hazardous in
nature or (lda;iroius to health. The Code Authority shall submit to
the Administrator within thirty days from the approval of this Code
a list of such operations or occupation-. In any state an employer
shall be de,,,ined to have complied with this provision as to age if he
shall have on file a certificate or permit duly signed by the Authority
in such state empowered to issue eniployment or age certificates or
permiiits showing that the employee is of the required age.
SECTION 2. Provisions From0 The Act.-In compliance with Section
7 (a) of the Act it is provided:
(a) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interfereiice. restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
(b) No employee and no one seeking employment .shall be re-
quired as a condition of employment to join any company union or
to refrain from joining. organizing, or assisting a labor organization
of his own choosing, and
(c) Employers shall comply with the nnaximumi hours of labor,
minimum rates of pay, and other conditionl- of emplloyment, ap-
pr\oved or pre-cribed by the Pre-ident.
SE'TION 3. I?, .'/a.';fil a/f;O of Employ'fqe .-No employer shall re-
classify employees or dulties of occupations performed or cnga'ge in
any other subterfuge for the plrplse of defeating the purpose or
pr \viins of the Act or of this Code.
SE:c-Tnx, 4. Si,,lirdl.s for Safety alI Heal/fi.-E\vry (employ,)er
shall make rea,;n;able 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 the Industry shall be slmiiitted
to the Administrator within six months after the date of approval of
SECTION 5. State Laws.-No provision in this Code shall .ispersedle
any State or Federal law which iinposrsc on employer, more stringent
requirelenits as to age of employees, wanes, hours of work, or as to
safety, health, sanitary or general working condition,, or in-urance,
or fire protection, than are impolsed by this Code.
SECTION 6. Posting.-All I.nployers shall post and keep poted
complete copies of this Code and any a ieiindulent- thereto in con-
splicuous places accessible to employe'--.
SEITION 7. Company Town and Sfor .-Eimployees other than
maintenance or supervi-ory men, or those necv.--ary to protect prop-
erty, shall not be required as a condition of employmi.nt to live in
homes rented from the employer. No employee shall be required as
a condition of employment to trade( at a -tore owned or specified by
SECTION 8. Payment of TVa /.,wq.,.-An employer shall make payment
of all wNages in lawful currency, or by negotiable check th.refor, pay-
able on demand. Tli ee wages shall be exempt from any payments
for pensions, insiran,.-e or sick benefits other than those voluntarily
paid by the wage earners or required by the State laws. Pay periods
for wages shall be at least -ellmi-monthly and for salaries at the end
of every month. Employers shall agree not to withhold wage;.
SECTION 9. Dl .iHi'liO for Complaint.-No employee shall be dis-
missed by reason of making a cmiiplaiint or giving evidence, with
respect to a violation of a Code.
AlrTICLE VI-ORGA.NIZ.TION, POWERS AND' DUTII:E OF THE
CODE Au] o IRIITY
SECTION 1. OrTgjani.:wti;o and Constitution.-A Code Autlority
to administer this Code is hereby established and shall consist of
nine voting menmers, five of whom shall be members of the Execu-
tive Commniittee of the Amnerican Manganese Producers Asociation
and four other members of the Industry (not. mrlellber of the Execu-
tive Committee) truly representative of the various interests of the
Industry elected by a fair method of selection approved by the
Administrator. This Code Authority shall make investigatio-ins as
to the fiinctioning and observance of any provisions of this Code
at its own instance or upon complaints of any per-oni affected and
shall report the same to the Administrator.
SECTION 2. In addition to the above membership of the Code Au-
thority, there may lbe one and not more than three members without
vote, and without compensation by the Industry, appointed by the
Administrator to serve for six month and twelve month terms from
the date of appointment as he may specify.
SECTION 3. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Author-
ity shall, (1) impose no inequitable restrictions on membership and,
(2) submit to the Administrator true copies of its Articles of Asso-
ciation, By-Laws, Rules and Regulations, and any amendments when
made thereto, together with such other information as to member-
ship, organization and activities as the Administrator may deem
necessary to effectuate the purposes of the Act.
SECTION 4. In order that the Code Authority shall at all times
be truly representative of the Industry and in other respects comply
with the provision, 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 appropriate modification in the method of selection of the Code
SECTION 5. Members of the Inldustry shall be entitled to partici-
pate in and share the benefits of the activities of the Code Authority
and to participate in the selection of the members thereof by assent-
ing to and complying with the requirements of this Code and sus-
taining their reasonable share of the expenses of its administration.
Such reasonable share of the expenses of administration shall be
determined by the Code Authority, subject to review by the Adminis-
trator, on the basis if volume of buIiiness and/or such other factors
as may be deemed equitable.
SECTIOx 6. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor
shall any member of the Code Authority be liable in any manner to
anyone for any act of any other member, officer, agent, or 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 willful misfeasance or nonfeasance.
SECTION 7. Powers and Duties.-Subject to such rules and regula-
tions as may be issued by the Administrator, the Code Authority
shall have the following further powers and duties, the exercise of
which shall be reported to the Administrator and shall be subject to
his right, on review, to disapprove any action taken by the Code
Authority. If the Administrator shall determine 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 investiga-
tion 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 (30) days' notice to him of intention to pro-
ceed 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 Act, subject to rules and regulations prescribed by the Adminis-
trator. To receive complaints of violations of this Code or disputes
arising thereunder, make investigations thereof, provide hearings
thereon, adjust such complaints and make such decisions as are neces-
sary thereon and to interpret the provisions of the Code and to bring
to the attention of the Administrator for prosecution, recommenda-
tion, and such other necessary action relative to unadjusted violations
(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, through a confiden-
tial agency, s-uch statistical information and reports as are required
for the administration of the Code and to provide for submission
by members of such statistical information and reports as the Admin-
istrator may deem necessary for the purpo~-es recited in Section 3
(a) of the Act, which information and reports shall be submitted
by members to such administrative and/or governmental agencies
as the Administr:itor may designi:te; provided that nothing in this
Code shall relieve any member of the Industry of any existing obli-
gations to furnish reports to any governmental ag.ncly. No indi-
vidual reports shall be discloed to any other imnimler of the Industry
of any other party except to such governmental agencies as may be
directed by the Administrator.
(d) To use such trade asociatlions and other agencies as it deeills
proper for the carrying out of any of its ectivities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilitit. s under this Code and that such trade
associations and agencies shall at all times be subject to and comply
with the provisions hereof.
(e) To make recommendations to the Administrator for the co-
ordination of the adninini-trtion of this Code with such other Codes,
if any, as may be related to the Industry.
(f) To cooperate with the Administrator in regulating the use
of any N.R.A. insignia solely by those inmembers of the Industry
who have assented to, and are complying with, this Code.
(g) To reconlmend to the Administrator further fair trade prac-
tice provisions to govern members of the Inwslltry in their relations
with each other or with other industries, and concerning control
of production through voluntary agreement, and to recommend to
the Administrator measures for ii iin-trial planning, including
stabilization of employment and the conwirvation of natural
(h) To make studies with a view to the establishing of classifi-
cations and standards of quality for products of the Industry in
cooperation with some Federal ag.-ncy, preferably the Bureau of
Standards of the United States Departmoi nt of Commllerce.
ARTICLE VII-MARKETING AND TRADE PRACTICE RULES
SECTION 1. Trade PratficI Rules.-The following trade prarctic.-s
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 practices which hereafter may be e(- tablished upon reconmvmenda-
tion by the Code Authority and approval by the Almini.-trator after
such notice and hearing as he may prescribe, shall be a violation of
SECTION 2 (a) Price .SclEd!du1c:s.-Each member of the Industry
within ten days after the effective ldate of this Code shall file with the
Code Authority the price or prices and terms and conditions of sale
at which he is offering his products for sale; this original filing to
become effective on the date of si h filing. The Code Authority
forthwith on such original filing shall notify all members of the
Industry of the contents thereof and shall make the same available to
the public. Any member of the Industry desiring to change the
price or prices of his products and terms and conditions of sale shall
notify the Code Authority of such inten-tion by filing his revised
schedule which shall becotnm effective immediately thereafter and
shall be distributed to the Members of the Industry and be made
available to the general public.
(b) Such price schedules shall include terms of payment, length
of bookings, or contracts and f.o.b. point and such other provisions as
may be necessary to fully inform the trade of all conditions of sale.
(c) The failing to file such price schedules or any change therein.
(d) The selling below such open or publicly announced price
schedules or the deviating from such terms and conditions of sale as
are set forth in Section 2, Subsection (a) of this Article.
SECTItO 3. The secret payment or allowance of rebates, refunds,
coimiisisions, credits, or unearned discounts, whether in the form of
money or otherwise, or the secret extension to certain purchasers of
sperinl services or privileges not extended to all purchasers on like
terms and conditions.
SECTION 4. The prepayment of freight charges with the intent or
with the effect of granting discriminatory credit allowance.
SEC'TI,'N 5. The allowance in any form of adjustment, discount,
credit., or refunds, for the purpose or with the effect of altering
retroactively the price quoted, in such manner as to create price.
SECTION 6. The predating or postdating of any invoice or sales
contract except to conform to a bona-fide agreement entered into
on the predate.
SECTION 7. The false marking of any product of the Industry or
the intentional misrepresentation of analysis of content or of any
size or weight or the making of, causing or permitting to be made
or publishing of any false, misleading, or deceptive statement by
way of advertisement, invoice, or otherwise concerning the size,
quality, quantity, character, nature, preparation, or origin of any
SECTION 8. The defamation of competitors by falsely imputing to
them dishonorable conduct, inability to perform contracts, ques-
tionable credit standing. or other false representation or false
disparagement, of the grade or quality of their goods.
SECTION 9. The imitation or copying of written or oral form of
trade iijarks, trade names, or slogans owned and used by a com-
SECTI:N 10. Inducing or attempting to induce the breach of an
existing oral or written contract between a competitor and his
customer or source of supply, or interfering with or obstructing
the performance of such contractual duties or services.
SECTION 11. No member of the Industry shall ship goods on con-
signmient except under circum-tances to be defined by the Code
Authority with the approval of the Administrator (where peculiar
circumstances of the Industry require the practice).
SECTION 12. 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 other goods.
SECTION 13. 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 rep-
resentative 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 con.-trupd1 to prohibit free
and general distribution of articles commonly used for adverti'ng
except, so far as such articles are actually used for commnircial
bribery as hereinabove defined.
SECTION 14. Giving of gratuities or special co('iiii-isions to buyers
or rewards or payments to the employees of buyers or the lavish
SECTION 15. No member of the Industry shall publish or circulate
unjustified or unwarranted threats of legal proceedings which tend
to or have the effect of harassing competit irs or intimidating their
customers. Failure to prosecute in due course shall be evidence that
any such threat is unwarranted or unjustified.
-SECTION 16. Aiding or abeiting any person, firm, association, or
corporation in any unfair practice herein set out.
SECTION 17. Prc(_iring. otherwise than with the con-ent 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.
SECTION. 18. Consiouiis.ly shipping a lower grade of material than
is permitted in the contract or order.
ARTICLE VIII-EXPORT TR \DE
SECT'ION 1. No provision of this Code relating to prices or terms of
selling, shipping, or marketing shall apply to export trade or sales
or shipments for export trade.
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 Sub-Section (b) of Section 10 of the Act, from time
to time to cancel or nmodify any order, approval, license, rule or
regulation issued under said Act.
SECTION 2. Such of the provisions of this Code as are not re-
quired to be included therein by the Act may, with the approval of
the Administrator, be modified or eliminated 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. unle-s so modified
or eliminated, shall remain in effect during the life 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 Administrator as necessary to
effectuate the policies of the Act. after such notice and hearing as
he may prescribe, any proposed amendmlenti shall thereupon become
effective as a part of this Code.
SECTION 4. The Code Authority may make recrniniendations 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 promote mo-
nopolies or monopolistic pr,.tiies, or to eliminate, oppress, or dis-
cliniiiiiate against small enterprises.
ARTICLE XI-EFFECTIVE DATE
This Code shall become effective beginning ten days after its
approval by the Administrator.
Approved Code No. 425.
Registry No. 1218-06.
UNIVERSITY OF FLORIDA
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