NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
CIGAR CONTAINER INDUSTRY
AS APPROVED ON NOVEMBER 27, 1933
UNIV. OF FL L 2.
U.S. DEPc,T Y,rder
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code No. 135
Registry No. 303--02
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Approved Code No. 135
CODE OF FAIR COMPETITION
CIGAR CONTAINER INDUSTRY
As Approved on November 27, 1933
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 Cigar Container Manufacturers Code,
and hearings having been held thereon and the Administrator hav-
ing 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 perti-
nent provisions of title I of said act and that the requirements of
clauses (1) and (2) of subsection (a) of section 3 of the said act
have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report and recommendations,
and findings of the Administrator and do order that the said code of
fair competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
HUGH S. JOHNSON,
THE WHITE HOUSE,
November 27, 1933.
NOVEMBER 1, 1933.
The White House,
SIR: This is a report on the Code of Fair Competition for the
Cigar Container Industry in the United States, as revised after a
hearing conducted in Washington on October 19, 1933, in accordance
with the provisions of the National Industrial Recovery Act.
PROVISIONS FOR HOURS AND WAGES
The maximum is 40 hours a. week with the following exceptions:
Executives and Supervisors receiving $35 per week or more.
Watchmen, firemen, delivery, or repair crews, not to exceed 10 per-
cent of employees in any one plant; time and one-half for hours
in excess of 40 hours per week. During the peak season from Sep-
tember 10th to December 10th employees may be employed 48 hours
per week provided the average weekly hours over any six-month
period shall not exceed an average of 40 hours per week. Productive
machinery may not be operated more than 8 hours per day except
during the three-month peak season when machinery and employees
may not be employed more than nine and one half hours in any
The minimum wage provided for employees shall be 40 cents per
hour in the Northwest, 321.' cents per hour in the North, and 30
cents per hour in the South. Persons working on piece work are
guaranteed minimum hourly wages. Weekly compensations which
were higher as of June 15, 1933, than minimum provided for in the
Code shall not be reduced. Differentials existing between common
labor and skilled labor before enactment of Code are to be main-
tained. Females performing men's work shall receive men's wages.
Learners shall receive 80 percent of minimum wage and shall not be
employed as learners for a period longer than eight weeks.
The age limit is 16 years, except in hazardous positions where the
age limit shall be 18 years.
ECONOMY IC EFFECTS OF THE CODE
The average weekly hours in the industry have been 50 to 55 hours
per week. The hour schedule fixed by the Code should increase
employment in the industry from 20 percent to 25 percent.
The minimum wages represent an increase of fiom 42 percent to
81 percent from present low levels and from 15 percent to 41 percent
above the levels of 1929. The members of the industry have evi-
denced a readiness to comply with the spirit of the Act in every way.
The Administrator finds that:
(a) The Code as recommended complies in all respects with the
pertinent provisions of Title I of the Act, including, without limita-
tion, subsection (a) of Section 7 and subsection (b) of Section 10
thereof; and that
(b) The applicant group imposes no inequitable restrictions on
admission to membership therein and is truly representative of the
Cigar Container Industry; and that
(c) The Code as recommended is not designed to promote monop-
olies or to eliminate or oppress small enterprises and will not operate
to discriminate against them, and will tend to effectuate the policy
of Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be approved.
HUGH S. JOHNSON,
CODE OF FAIR COMPETITION
CIGAR CONTAINER INDUSTRY
This Code is an undertaking in self government subject to the
supervision of the Administrator of Title I of the National Indus-
trial Recovery Act for the purpose of increasing employment, estab-
lishing fair and adequate wages, effecting necessary reduction of
hours, improving standards of labor, and eliminating unfair trade
practices, to the end of rehabilitating the Cigar Container Industry,
avoiding further depletion and destruction of capital assets and
enabling it to do its part toward establishing that balance of indus-
tries which is necessary to the restoration and maintenance of the
highest practical degree of public welfare. Upon being approved
by the President., this Code shall constitute the standards of Fair
Competition for the Cigar Container Industry, and shall be binding
upon every member thereof.
(a) The term Cigar Container Industry as used herein includes
the manufacture for sale or for use by the manufacturer of all types
of cigar containers which are required by federal laws or regulations
to bear a factory number and which are subject to the provisions of
the Internal Revenue acts of the United States and regulations issued
thereunder, as no.w in force or as hereafter amended.
(b) The term ".employee" as used herein includes anyone engaged
in the industry in any capacity receiving compensation for his
service irrespective of the nature or method of payment of such
(c) The term "employer as used herein includes anyone by whom
such employee is compensated or employed.
(d) The term member of the industry includes anyone engaged
in the industry as above defined, either as an employer or on his
(e) The terms President ", "Act ", and "Administrator ", as used
herein, shall mean respectively the President of the United States
the National Industrial Recovery Act, and the Administrator of
Title I of said Act.
(f) The term "Association as herein used means the National
Cigar Box Manufacturers Association.
ARTICLE III-HOURS OF LABOR
(a) Except as hereinafter otherwise provided no employee shall
be permitted to work in excess of 40 hours in any one week.
(b) The maximum hours fixed in the foregoing provision shall not
1. To employees in an executive or supervisory capacity receiving
$35.00 or more per week;
2. To watchmen, firemen, delivery or repair crews; provided, how-
ever, that the number of such employees shall not exceed 10 percent
of the total number of employees in any single plant; and provided
further, that one and one half times their normal rate shall be paid
to all such employees for hours worked in excess of the maximum
weekly hours (40 hours) hereinabove provided.
(c) The members of the industry may, if necessary to meet custo-
mers' requirements, during the season of peak demand beginning
September 10th and ending December 10th, after application to and
approval of the Authority, permit employees to work not more than
48 hours in any one week; provided, however, that the average
weekly hours of any employee in any six months' period shall not
exceed the maximum hours specified in section (a) of this Article.
(d) Members of the Industry shall not operate productive
machinery in the industry nor engage employees for more than one
shift of eight hours per day; provided, however, that during seasons
of peak demand hereinabove referred to, productive machinery may
be operated and employees engaged not more than nine and one-half
hours in any one day.
(e) No employer shall knowingly engage any employee for any
time which when totaled with that already performed with another
employer or employers, exceeds the maximum permitted herein.
ARTICLE IV-MINIMUM WAGES
(a) No employee shall be paid less than the rate hereinbelow set
forth for the territory designated:
1. Washington, Oregon. California, Utah, Nevada, and Colorado
(North of 38 degrees north latitude), 400 per hour.
2. All the remainder of the United States north of 39 degrees,
43 minutes north latitude, 32120 per hour.
3. All the remainder of the United States south of 39 degrees,
43 minutes north latitude 30C per hour.
(b) Persons who are limited in their earning power through phys-
ical or mental defects, age, or other infirmities, may be employed on
lighter duties below the minimum wage hereinabove provided and for
longer hours than are herein authorized if the employer obtains
from the State Labor Commission a certificate authorizing the em-
ployment of such employees in such manner; provided, however, the
number of such employees shall not exceed five percent of the total
number of employees in any plant nor receive less than 80%o of the
minimum wage required by this Code.
(c) This article establishes a minimum rate of pay regardless of
whether an employee is compensated on a piece rate, time rate, or
(d) The weekly compensation effective June 15, 1933, in excess of
S minimum wage hereinabove specified shall not be reduced, notwith-
standing that the hours of work in any such employment may be
(e) The wages of all employees receiving more than the minimum
rates herein prescribed shall be equitably adjusted and the differen-
tials existing prior to the date of the approval of this Code
(f) Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.
(g) The minimum wages hereinabove specified shall not apply to
apprentices or learners; provided, however, that the total number of
such apprentices and learners shall not exceed five percent of the
total number of employees engaged by a member of the industry in
any one plant; and provided further that the wages paid to such
apprentices and learners shall not be less than eighty percent of the
minimum rates hereinabove specified; and provided further that the
period of apprenticeship or learning shall not exceed eight weeks.
ARTICLE V-GENERAL LABOR PROVISIONS
(a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall be
free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives, or
in self-organization, or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(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.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
(d) No person under 16 years of age shall be employed in this
Industry, nor anyone under 18 years of age at operations or occupa-
tions hazardous in nature or detrimental to health. In any State an
employer shall be deemed to have complied with this provision if he
shall have on file a certificate duly issued by the authority empowered
to issue employment certificates showing that the employee is of the
(e) Home work shall not be permitted.
(f) Within each State no provision of this Code shall supersede
any laws of such State imposing more stringent requirements on
employers regulating the age of employees, wages, hours of work, or
health, fire, or general working conditions, than provided under this
(g) Employers shall not reclassify employees or duties of occu-
pations performed by employees so as to defeat the purposes of
(h) Each employer shall post in conspicuous and accessible places
full copies of this Code.
ARTICLE VI-ADMIN TISTRATION
To effectuate further the policies of the Act, a Code Authority,
hereinafter referred to as the Authority, is hereby constituted to co-
operate with the Administrator in the administration of this Code.
1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of seven individuals or such
other members as may be approved from time to time, by the Admin-
istrator, to be selected by a fair method. The Administrator, in
his discretion, may appoint additional nonvoting members to repre-
sent the President. The Code Authority shall be the official agency
of the Industry for the Administration of this Code.
(b) The Code Authority shall be selected as follows:
Within thirty days after the approval of this Code by the Presi-
dent, the proponents of the Code, the National Cigar Box Manu-
facturers' Association, after due and reasonable notice to the Indus-
try, shall call a meeting of the members of the Industry for the
purpose of selecting the members of the Code Authority. At such
meeting and election, each member of the Industry shall be entitled
to one vote either in person or by proxy and the notice of such
meeting shall so specify.
One member of the Code Authority shall be selected by the
National Cigar Box Manufacturers' Association, one member of the
Code Authority shall be selected by the Eastern Cigar Box Manu-
facturers' Association; one member of the Code Authority shall be
selected by the Western Cigar Box Manufacturers' Association; and
one member of the Code Authority shall be selected by members of
the Industry who are not members of any of the Associations herein-
Each member so selected shall be the representative of the group
by whom such member is elected. The remaining three members of
the Code Authority shall be elected by a majority vote of all mem-
bers of the Industry present in person or by proxy.
(c) Each trade or industrial association directly or indirectly
participating in the selection or activity of the Authority shall-
1. Impose no inequitable restriction on membership, and
2. Submit to the Administrator true copies of its articles of asso-
ciation, bylaws, regulations, and any amendments made thereto,
together with such other information as to membership, organiza-
tion, and activity as the Administrator may deem necessary to
effectuate the purposes of this Act.
(d) 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 provide such hear-
ing as he may deem proper; and thereafter if he shall find that the
Code Authority is not truly representative and does not in other
respects comply with the provisions of the Act, he may require an
appropriate modification in the method of selecting the Code
2. The Authority shall have the following duties and powers to
the extent permitted by the Act, subject to the right of the Adminis-
trator on review to disapprove or modify any action taken by the
(a) The Authority shall be the General Planning and Administer-
ing Agency of this Code.
(b) The Authority may make such rules and regulations and im-
pose upon members of the Industry such restrictions as may be
necessary to administer this Code.
(c) The Authority is also set up to cooperate with the Adminis-
trator in making investigation as to the functioning and observance
of any provisions of this Code, at its own instance, at the request
of the Administrator, or on complaint of any person affected, and
report the same to the Administrator.
(d) The Authority shall coordinate the Administration of this
Code with such codes, if any, as may affect this Industry, or any
related industry, with a view to promoting joint and harmonious
action upon matters of common : interest.
(e) The Authority shall designate such divisional agencies to
assist in the proper supervision and operation of this Code as it
may deem wise and may delegate to said agencies such power granted
by this Code to the Authority as in its judgment may be necessary
to the efficient and effective operation thereof. The Authority may
from time to time change the personnel of any agency which it has
appointed, or modify the powers delegated thereto. The Authority
shall, however, reserve final responsibility with respect to any powers
or duty delegated by it.
ARTICLE VII-CODE REPORTS AND PARTICIPATION
(a) In order that the President may be inforred of the extent of
the observance of the provisions of this Code and of the extent to
which the. declared policy of the National Industrial Recovery Act
is being effectuated in the Cigar Container Industry, the Authority
shall make such reports as the Administrator may require, periodi-
cally, or as often as he may direct, and each member of the Indus-
try shall make such sworn or unsworn reports to the Authority,
periodically, or as often as it may direct, on wages, hours of labor,
conditions of employment, number of employees, production, ship-
ments, sales, stocks, prices, and other matters necessary for the Ad-
ministration of this Code as the Authority may require.
(b) 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. Those who
participate or accept the benefits of the activities of the Authority
shall pay their reasonable share of the expense of its administration
of this Code. The reasonable share of the expenses of administra-
tion shall be determined by the Code Authority, subject to review
by the Administrator, on the basis of volume of business and/or such
other factors as may be deemed equitable to be taken into con-
(c) Statistical information required by the Code Authority in
accordance with the provisions of this Code shall be deemed confi-
dential and shall not be divulged to any member of the Industry, or
any other person, except in summary, but shall be made available to
the Administrator upon request and may be used to facilitate the
administration of this Code. In the event that summary informa-
tion in effect divulges the identity of individual members of the In-
dustry it shall not be revealed to any other member of the Industry
except upon the written permission of said member.
(d) In addition to the information required to be submitted to
the Code Authority, there shall be furnished to government agencies
such statistical information as the Administrator may deem neces-
sary for the purposes recited in Section 3 (a) of the Act.
ARTICLE VIII-COST PROTECTION
(a) The Authority shall employ a firm of representative certified
public accountants to formulate and submit to it a uniform method
of cost inclusion and application, and when this shall have been
adopted by the Authority, and approved by the Administrator, each
member of the industry shall immediately proceed definitely to deter-
mine the cost of each type of container he produces in accordance
with the method so adopted, and with regulations issued by the Au-
thority thereunder. Members of the Industry shall be entitled, if
they so desire, to employ their own certified public accountants, pro-
vided that in ascertaining their costs through their own certified
accountants they shall comply with the requirements of the uniform
method of cost inclusion adopted and approved as herein provided.
(b) Whenever and so long as the Authority determines that it
will contribute toward the accomplishment of the declared purposes
of the Code, and whenever it is satisfied that it is able to determine
the costs under the uniform method hereinabove mentioned, the Au-
thority is authorized to establish, and from time to time revise, mini-
mum prices, to protect the cost of the various types of containers
manufactured by the Industry. Such minimum prices shall be es-
tablished with due regard to the maintenance of free competition
among the various types of containers, with the products of other
industries, and to the encouragement of the use of said products;
and shall be not more nor less than the weighted average costs deter-
mined as provided in this Article and under such rules and regula-
tions as the Authority may from time to time adopt and issue. The
original average weighted cost and any revisions thereof as provided
for herein shall be approved by the Administrator as equitable and
fair before being announced by the Authority.
(c) Until the Authority shall have established minimum prices as
provided in Section (b) hereof, no member of this Industry shall sell
any type of container below his own cost as established in paragraph
(a) excepting to meet the competition of a lower cost producer, and,
upon being notified by the Authority that. it has established a mini-
mum price for any type of container, as provided in paragraph (b),
no member of the Industry shall sell any such container below that
ARTICLE IX-CANCELLATION OR MODIFICATION
This Code, and all the provisions thereof, are expressly made sub-
ject to the rights of the President, in accordance with the provisions
of subsection (b) of Section 10 of the National Industrial Recovery
Act, from time to time to cancel or modify any order, approval,
license, rule, or regulation issued under Title I of said Act, and spe-
cifically, 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.
After due notice and hearings this Code may be-amended upon
the recommendation of the Code Authority or any interested party
or group, or upon the Administrator's own notice, and any modifica-
tion so arrived at shall be effective when approved by the President.
(a) This Code shall not be construed, interpreted, or applied so as
to promote or permit monopolies or monopolistic practices, and shall
not be availed of for that purpose.
(b) The provisions of this Code shall not be so interpreted or ad-
ministered as to eliminate or to oppress, or to discriminate against
Violation by any person of any provisions of this Code, or the
submission of any false statement or report to the President, or to
the Authority, shall constitute an unfair method of competition, and
the offender shall be subject to the penalties imposed by the National
Industrial Recovery Act.
ARTICLE XII-RrLES OF FAIR TRADE PRACTICE
(a) No member of the Industry shall make, or permit to be made,
direct quotations of prices, terms, or quantities guaranteed for a
period in excess of thirty days.
(b) No member of the Industry shall grant cash discounts in excess
of 2%, ten days, e.o.m.", or thirty days net, e.o.m.", nor extend
credit in excess of sixty days from net due date.
(c) No member of the industry shall secretly offer, allow, or per-
mit to be given any rebates, commissions, refunds, credit, free goods,
unearned discounts, whether in the form of money, material, or
otherwise, for the purpose of influencing a sale, nor shall a member
of the industry secretly extend to any customer any special service
or privilege not extended to all customers of the same class.
(d) No member of the industry shall sell cigar containers on
(e) Commercial Bribe;ry.-No member of the Industry shall di-
rectly or indirectly, give or permit to be given, or offer to give, money
or anything of value to agents, employees, or representatives of cus-
tomers or prospective customers, or to agents, employees, or repre-
sentatives of competitors' customers or prospective customers, with-
out the knowledge of their employers or principals, as an induce-
ment to influence their employers or principals to purchase or con-
tract to purchase from the makers of such gift or offer, or to influence
such employers or principals to refrain from dealing or contracting
to deal with competitors.
(f) No member of the Industry shall use or substitute in the sale
of any cigar containers any materials of a superior or inferior quality
to that specified by the customer, or specified in any quotation made
prior to any such sale, and accepted by the customer.
(g) Defamation.-No member of the Industry shall defame com-
petitors by falsely imputing to them dishonorable conduct, inability
to perform contracts, questionable credit standing, or by other false
representations or by the false disparagement of the grade or quality
of their goods. Any person, firm, or corporation engaged in supply-
ing material to members of the Industry, or any employee of any such
person, firm, or corporation, making or permitting to be made any
false representations as to any member of the Industry, his financial
standing, personal integrity, commodities, prices, or ability to serve
his, trade, may be reported to the Authority which shall promptly
report such false representations to the proper agency of the Code
of Fair Competition, if any has been theretofore approved by the
President, which constitutes the standards of Fair Competition for
such person, firm, or corporation.
ARTICLE XIII-EFFECTIVE DATE
This Code shall be effective on the second Monday after the (late
of its approval by the President.
Approved Code No. 135
Registry No. 303-02
UNIVERSITY OF FLORIDA :
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