Proposed code of fair competition for the plain washer industry as submitted on September 2, 1933

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Material Information

Title:
Proposed code of fair competition for the plain washer industry as submitted on September 2, 1933
Portion of title:
Plain washer industry
Physical Description:
12 p. : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Washers (Fasteners)   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1104-02."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004931548
oclc - 63655140
System ID:
AA00008385:00001

Full Text







I::N..TI~~SONAL RECOVERY ADMIN ISTRATION




PRO COE OF FAIiR C O MPETIT ION

FOR THE

];! PLAIN WASHER INDUSTRY

AS SUBMITTED ON SEPTEMBER 2, 1933






MEMBER






UNIV. OF- FL UB1. WE ~OUR omR


: 0= -

..tt nn





The Code for the Plain Washer Industry
121 its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained .therein are
to be regarded as havntg received the arpprodal of
the Notional Recovery Administration
as applying to this industry




UNITED STATE %-,
GOVERNMENT PRINTING P ~ICE
WASHINGTON : 1938 CC


SaLi;'`i~l~te IteSupewrintendent of Documents. WashingtonD.C. `' 3 Price 5 cents





















































































I~. iiii













PROPOSED CODE OF FAIR COMPETITION OF THE PLAIN
WASHER INDUSTRY

A~n r;cE I DEFINITIONS

Wh~ler~ever used in this Code the terms hereinafter in this Article
defined shall, unless the context shall otherwise clearly indicate, have
the respective meanings hereinafter set forth. The definition of any
such term in the singaular shall apply to the use of such term in the
plural and vice versa.
SECI~ON 1. The term "L the Unit~ed Stat~es means a~nd includes all
o~f the territory of the Unit~ed States of America on the North Amer-
ican continent.
SEc. 2. The term the President means t.he President of the
United States of America.
SEc. 3. The term Plain W~asher means and includes any
stamped part having a, hole or slot therein for the purpose of fitting
over a screw, bolt, or rivet and such other parts a~s are commonly
known as washers." The term also includes related products or
by-products such as round blanks, tool checks, etc. The term does
not include lock washers, cast iron or malleable iron washers, or any
other washers not made by the stamping process.
SEO. 4. The term "l the Industry means and includes the business
of producing in the United St~ate~s and selling plain washers.
SEO. 5. The term Member of the Industry means and includes
any person, firm, association, or corporation operating a plant or
plants in the United States for the production and sale of plain
washers.
SEc. 6. The term t~he Code means and includes this Code
as originally approved by the President and all amendments hereof
and thereof made as hereinafter in Article XII provided.
SEc. 7. Except as otherwise required by the provisions of Section
4 of Article XI of the Code, the term member of the Code means
any member of the Industry who shall have become a member of the
Code as hereinafter in Section 3 of Article III provided.
SEO. 8. The term the~ Association means the Plain W~asher
Manufacturers Association.
SEC. 9. The term the Association President means the Presi-
dent of the Association at the time in offce.
SEC. 10. Thre term "( the Secretary-Treasurer means the Secretaryr
of the Association at the time in office.
SEC. ii. The term "L unfair practice means and includes any act
described as an unfair practice in Article VIII.
SEC. 12. Wherever used in the Code with reference to the Industry
or any member of the Industry or any member of the Code, unless the
ed~ntext shall otherwise clearly indicate,
(a) Tihe term "L products () includes plain washers;
9927--33 (11








(b) The term "' Plant means a plant for the production of one
or more products in the Industry or a plant partially devoted to the
production of one or more products in the industry;
(c) The term "L prices includes only prices for products produced
in the Industry;
(d) The term "L wages includes only wages for labor performed
in the Industry; '
(e) The term labor means only labor performed in the In-
dustry;
(f) The term "' hours of labor or "( hours of work includes only
hours of labor or hours of work in the Industry; and
(g) The term employee means only an employee in the
Industry.
SEc. 14. (a) The term date of invoice means the date of the
invoice of any product.
(b) The term "' discount for early payment means the amount of
the deduction allowed for the payment of an invoice of products
before the expiration of ten days from the date of said invoice, ex-
cept where a custom has been established in the case of a particular
customer over a period of years for some other period than ten days
from date of invoice, such as tenth prox, the term discount for
early payment shall mean the deduction allowed for the payment
of an invoice of products before the expiration of said period estab-
lished by custom; provided, however, that in no case will this pro-
vision be applied to a new customer.
(c) The term an affiliated group means one or more corpor-
nations connected through stock ownership with a common parent
c,,~orpoaton if (1) at least 75%Cr of the stock of such corporations
(except such common parent corporation) is owned directly by one
or more of the other corporations, a~nd (2) such common parent
corporation owns directly at least. 75%/ of the stock of at least one of
the other corporattions. The. terml an a~ffiliated company of a
member of the Codee means (1) a corporation which is one of an
affiliated group that also includes such member of the Code, or (2),
in case the member of the Code is a person, firm or association, a
corporation at least 75%0 of th~e stock of which is owned by such
member. For the purposes of this paragraph the term stock "
does not include nonvoting stock which is limited and preferred
as to dividends.

ARTICLE II-FURPOSE OF THE CODE

SECTION 1. The Code is adopted pursuant to Title I of the Na-
tional Industrial Recovery Act.
SEc. 2. The purpose of the Code is to effectuate. the policy of
Title I of the National Industrial Recovery Act in so far as it is
applicable to the Industry.
ARTICLE III MEMVBERsHIP IN THE CODE i

SECTION 1. It is of the essence of the Code that all ~members of
the Industry which shall comply with the provisions of the Code 1
shall be entitled to participate in its benefts upon the terms and
conditions set forth in the Code.








SEc. 2. AnLy member of the Industry is eligible for membership
in the Code.
SEc. 3. Any member of the Industry desiring to become a member
tif the Code may do so by signing and delivering to the Association
President a statement accepting the Code and agreeing to abide by
its provisions.
.SEc. 4. The rules and regulations in respect to meetings of mem~-
bers of the Code are as follows:
(a) A meeting of members of the Code may be. called and held
at any time by members of the Code having the right to cast at
least 50% of all t~he votes that might be east at such meeting, if
all the members of the C~ode were present, t~her~eat, on not less than
three days' notice to ea~ch of such membl;ers stating the time and
place. of suIch meePtingl and the purposes thereof.
(.b) At each meetings of t~he members of the Code each member
thereof shall have as many votes asi shall equal the quotient ob-
tained by dividing by 10,000 the aggr~egate amount in dollars of
the invoiced value of the products delivered by such member for
consumption within the United States during the preceding calen-
da --------- 1-------- --~~V~r~ yers.Frct~ion in sucrh quotient, shall bie d-isregardled; provided,
however, that each member of the Code shall havleat least, one vote.
All questions as to the number of votes which each members of the
CodeP sha~ll be entit~led ton cant. at alny mePt~ing of thle members thereof
shall be determined by the Secr'eta ry-Treasury). Any person or firm
who shall be a member of the Code may, and any association or cor-
poration which shall be a memnberr of the Code may vote at meet-
ings of the members of the Clode by proxy in writing duly executed
by such member and 81led with t~he Secreta ry-Treasulrer. Any such
proxy may be for a, specified meeting or be a. general proxy for any
or all meetings that may' be held until sulch proxy shall have been
revoked by an instrument. in writing dluly executed by t~he member
of the Code which gave such proxv andcl filed with the Secretary-
Treasurer.

ARrzou; IV~--HoURs or LABOR, RATES OF PAY, AND OTH-ER CONDITIONS
or EMIPLOYMLENT

SECTION 1. Pursuant to subsection (a) of Section 7 of the National
Industrial Recovery: Act, and so long as t~he Clode shall be in effect,
the Code shall be subject to the following conditions:
(a) That. mpnloy~es shall have the right. to orgranize, and bargain
collectively through representatives of their own choosing, and shall
b~e free from the interference, restraint, or coercion of employers
of labor, or their agents, in t~he designation of such repr>resen ta tlves
or in self-organization or in other concerted activities for the pur-
pose of collective bargaining or other mutual aid or protection;
(b) That no employee and no one seekinga employment shall be
required as a condition of employment to jomn a.ny company umion
or to refrain from joining, organizing, or assisting a, labor organiza-
tii~n of his own choosing; and
(e) That employers shall comply with the maximum hours of
14ibor, ii~nmi;ni m rates of pay, and other conditions of employment
i4piroved ;oi prescribed by t~he President.







SEc. 2. It is clearly understood that the foregoing paragraph does
not impair in any particular the constitutional rights of the em-
ployees and employer to bargaain individually or collectively~ as may
be mutually satisfactory to them. The selection, retention, and a~d-
vancement of employees shall be on the basis of their individual
merit, without regard to their affiliation or nonaffliation with any
labor organization.
SEC. 3. It is further understood that collective. bargaining will be
permitted by the employee only in connection with minimum pay,
maximum hours, and working conditions.
SEc. 4. On andl after the effective date employers shall not operate
on a schedule of hours of labor in excess of 40 hours per week per
employee: Provided, however, that these limitations shall not apply
to branches of this industry in which seasonal or peak demand or
breakdown places an unusual and temporary burden upon such
branches; in such cases such number of hours may be worked as are
required by the necessity of the situation;
Providing further, that in no case shall the hours worked in any
one week exceed 48 hours; and
Providing further, that the number of ours of overtime worked
in any six (6) months' period shall not exceed 32 hours; and
Providin g further, that nothing in the foregoing employment
provisions shall apply to executive, administrative, supervisory,
emergency, repair employees, and outside sales and service men.
It is understood, however, that old and partially disabled em-
ployees and watchmen are not included in the above labor provisions,
except that they shall in no case be paid less than 80%0 of the above
minimum, and provided that the total of such employees shall not
exceed two (2) percent of the total number of employees.
SEc. 5. None of the Members of the Code shall employ in or about
its plants in the Industry any person under 16 years of age.
SEC. 6. On and after the effective date, the minimumwgeht
shall be paid b any employer to any employee engaged in the pro-ta
cessing of products of the Industry and any labor incident thereto,
shall be 35e per hour for males, and 30e an hour for females, unless
the hourly rate for the same class of work on July 15, 1929, was
less than the above specified minimums, in which latter case not
to pay less than the hourly rate on JTuly 15, 1929, and in no event
less than 30e per hour for males, and 258 per hour for females,
and provided further that learners and apprentices may be paid
not less than 80%/ of the above minimum wages for a period of not
to exceed three (3) months; but the total number of such learners
and apprentices shall not exceed 5%0 of the total number employed
by any such employer in any calendar month.
The above minimum wage shall not in anly way be considered
as a discrimination by reason of sex, and where in any case females
do substantially the same work, or perform substantially the same
duties as men, they shall receive the same amount of wages as men
receive for doing such work or performing such duties.
On and after the effective date, the minimum wage that shall
be paid by any employer to all other employees except comm~igsson
sales people, shall be not less than at the rate of $15.00 per work
in any city of over 500,000 population, or in the immediatetre
area of such city; nor less than at the rate of $14.50 per wee in






5

any iity of between 250,000 and 500,000 population, or in the im-
mediate trade area of such city; nor less than at the rate of $14.00
pe week in any city of between 2,500 and 950,000 population, or
in thBe immediate trade area of such city; and in towns of less than
91500 population, to increase all wages by not less than 20%0, pro-
vitded that this shall not require wages in excess of at t~he rate of
$12.00 per week.
Such rates of- pay shall not, however, be understood to be the
maximum rates of pay, but, until changed as aforesaid, none of
the members of the Codle shall be required~ to pay its common labor-
ers in the Industry a rate of pay higher than the rate specified,
except as such member shall have agreed to pay such higher rate
in anyr agreement heretofore or hereafter made br su1ch member
with its employees.
In the case of employees (not including apprentices and learners)
performing work for which they are paid per piece of work per-
formed, the minimum rate of pay which each member of the Code
shall pay for such work shall be suffcient to produce at the average
rate of performance of such work at the time prevailing at the
plant of such member where such work is performed the minimum
rate of pay her hour provided in the Code for common labor.
ARTICLE V-PRODUCTION AND NEW CA-PACITY

SEcTION 1. It is t~he consensus of opinion in the Industry that it is
not necessary, in order to effectuate t~he policy of Title I of the
National Industrial Recovery Act, to make any~ specific provision1 in
the-Code for controlling or regulating the volume of production in.
the Industry or for allocating production or sales among its members.
It is believed that the elimination of unfair practices in the Industry
will automatically eliminate any overproduction therein and any
alleged inequities in the distribution of production andi sales among
its members.

ARTICLE VI-ADMCINISTRATION OF THE CODE

SECTION 1. The administration of t~he Code shall be under the
direction of the Code Committee.. The Code Committee shall havre
all the powers and duties conferred upon it by the Code and gen-
erally all such other powers and duties as shall be necessary or proper
to enable it fully to adminisster the Code and to effectuate its
purpose.
SEO. 2. The Secretary-Treasurer shall act as Secretary Treasurer
under the Code and, under the direction of the Code Committee,
he shall have custody of, and have charge of the disposition, of, all
funds collected under the Code; and he shall keep proper books of
account showing the collection and disposition thereof.
SEC. 3. The expenses of administrating the Code shall be borne by
the members thereof. The Code Committee may from time to time
leake sulch~asse~ssments on account of such expenses against, the mem-
hnereof the Code as are necessary and such assessments shall be pay-
arble -assuch Committee shall specify. The part of such expenses
wich CjPhal be assessed against each member of the Code shall bear
the sangerelation t the total thereof as the number of votes which,








pursuant, to, the provisions of t~he Code, such member might east at a
meeting oIf the members thereof held at the time of any such assaess-
ment shall -bear t~o the total number of votes that might be cast
therent by all the then members of thle Code. Failure of any mnem-
ber of thle Code to p~ay thle amnounlt of any assessment against such
member for a period of thlirty dlays after the dlate on which it be-
camne pav1able shall constitute a violation of the Code.
SEC:. *1. Tile COde Committee mlay fromt time to time appoint such
fur~ther comlmitt~e s as it. miay deem necessary or proper in order to
effectuate thle pm-p~ose of the Code, and~ it may delegate to any such
committees, generally or in particular instances such of the powers
andl (Iuties of thie C'ode Commnitteee under the Code as such Commit-
tee shlall deem necessary3 or proper in order to effectuate such pur-
pose. Any ember of any such committee may be a member of the
C'ode C'ommittee or an officers or a dir~ector of a member of the Code
or a 1person1 nolt. havingr any industrial connection with any member of
the C'ote or within the Industry as t~he Code Committee shall deem
proper.

A ARTICLE V'II-PRICES AND TERMS OF PAPYMENT

SECTION 1. Each member of the Code shall, within ten days after
the effective date of the Code, file with t.he Secretary-Treasurer a
list of discounts for its standard washers, and from and after the
expiration of such ten days such member shall at all times maintain
on file with the Secr~etar~y-Treasurer a list showing the discounts for
its standard washers and shall not make any changes in such dis-
counts except as hereinafter provided. Each such list shall state
the date upon whichi it shall become effective, which date shall be not
less than ten day!s after t.he dlate of filing such list with the Secretary-
Treasurer; prov-ided, however, that t~he first list of discounts filed
by any member of the Code as above provided shall take effect on
the day of filing thereof. None of the discounts shown in any list
filed byv any1 member of the CodeP as herein p-rnrovide shall be changed
except by the filing by such member with the Secretary-Treasurer
of a new list of its discounts, which shall become effective on the
effective date therein specified which shall not be less than ten days
after the late on which such new price list shall have been so filed.
SEc. f2. All prices quoted and billed by any member of the Code
for any product sold by such member from anid after ten days after
the effective date of the Code shall be delivered prices.
Nothing in thlis Code shall affect existing contracts during the
remainder of the life of such contract.
SEc. 3. On the complaint of any three members of the Code the
Code C~ommitt~ee shall have the power to investigate any discount
or any product shown in any list filed with the Secretary-Treasurer
by any member of the Code, where it is suspected that such member
is selling any product below the actual manufacturing cost. FEor
the purpose of t~he investigation thereof the Code Committee may
require such member to furnish such information concerning the cost
of manufacturing such product as the Code Committee shall deem
necessary or proper for such purposes. If the Code C~ommittee after
such investigation shall determine that such discount created an
unfair price for such product, having regard to the cost of manufac-








tulring such product, and that the maintenance of such unfair dis-
count may result in unfair competition in the Industry, the Code
Committee may require the member of the Code that filed the list
in which such unfair discount is shown to file a new list showing a
fair discount for such product, which fair discount shall become
effective immediately upon the filing of such list. If such member
of the Code shall not within ten days after notice to it of such de-
termination by the Code Committee file a new list showing such fair
discount for such product the Code Committee shall have power to
fix a fair discount for such product, which fair discount, however,
shall not be more than the discount of any other mlember of thle Code
a~t that thee effective for such product and in respect of which a Code
Committee shall not thleretofore have begun an investigation or a
complaint shall not have been? made by anly member of the Code.
When the decision of suchl Clode Commnitt~ee fixing suchl discount
shall have been filed with the Secretary-Trea.su rer and t~he Secreta~ry-
Treasurer shall have given notice thereof to such member, such fair
discount shall be the discount of such member for such product until
it shall have been changed as in the: Code provided.
SEC. 4. The maximum rates of discount for early payment. which
may be allowed by any member of t~he Code shall be one percent and
the standard terms may be allowed by any member of t~he Code shall
be thirty days. Nothing in the Code contained shall prevent any
member of the Code from allowing credit to any purchaser or allow-
ing any purchaser to delay payment~ in respect of any invoice for a
longer period than the standard terms.
SEc. 5. Any extras added to, and any deductions made from, the
list price for any product sold by any member of the Code in de-
termining its quoted or billed price for such product shall be uni-
form for all members of the. Code. In ca.se any member of the Code
shall sell any product to which any such rate of extra or deduction
shall apply, such member shall add an extra at a rate which will not
be less than the rate of extra applicable to such product, as aforesaid
and at the time in effect and none. of the members of the Code shall
make any deductions at a rate that shall be more favorable to the
purchaser of such product than the rate of deduction applicable to
such product theretofore approved by the members and at the time
in effect; provided, however, that nothing in the Code contained
shall be so construed as to prevent any member of the Code from
selling or contracting to sell any product for use by7 the purchaser
thereof in the manufacture of articles for shipment in export. trade
within the meaning of the term export t~radle" as it is used in
the Export Trade Act under an agreement by such member of the
Code with such purchaser that, when such articles shall have been
shipped in such export trade, such member of the Code shall make
an allowance at a rate which shall be such to enable such member of
the Code or such purchaser to meet foreign competition in the de-
livery of such product or such articles, as the case may be.
-SEC. 6. A sale made by any member of the Code indirectly through
any affiliated company of such member shall be deemed to be a sale
meade by such member.
.E, Sm. Nothing in the Code contained shall be deemed to apply
to or affect the sale of any product for direct shipment in export
trade by any member of the Code within the meaning of the term








" export trade as it is used in the Export Trade A~ct, or, unless and:
to the extent that the Code Committee shall otherwise determine,
the sale of any product by any such member for direct shipment
to the! Philippines, Htawaii, or Puerto Rico, or other insular
possessions of the United States of America.
AnRTCLE VIII-UTnran6 PRACTICES

SECTION 1. For all purposes of the Code the acts described below
together with other acts specifically mentioned in the Code shall con-l
stitute unfair practices. Such unfair practices shall be deemed to
be unfair methods of competition commerce within the meaning o~f
the Federal Trade Commission Act as amended, and the usig o
employing of any ofthmsllbdemdtbeaiotonote
Code, alid any member of the Industry which shall directly, or indi-
rectly through any officer, employee, agent, or representative, know-
ingly use or employ any of such unfair practices shall be guilty of a
violation of the Code.
(a) Making or promising to any purchaser or prospective pur-
chaser of any product, or to any officer, employee, agent, or repre-
sentative of any such purchaser or prospective purchaser, any bribe,
gratuity, gift, or other payment or remuneration, directly or
indi rectly.
(b) Procuring, otherwise than with the consent of any member
of the Code, any information concerning the business of such mem-
ber which is properly regarded by it as a trade secret or confidential
within its organization, other than information relating to a violation
of any provision of the Code.
(c) Imitating or simulating any design, style, mark, or brand
used by any other member of the Code.
(d) `Using or substituting any material superior in quality to that
specified by the purchaser of any product or using or substituting
any material or any method of manufacture not in accord with any
applicable law, rule, or regulation of any governmental authority.
(e) Clancelling in whole or in part, or permitting the cancellation
in whole or in part of any contract of sale of any product, except
for a fair consideration, or paying or allowing to any purchaser in
connection with t~he sale of any product any rebate, commission,
credit, discount, adjustment, or similar concession other than as is
permitted by the Code and specified in the contract of sale.
(f) Disseminating, publishing, or circulating any false or mi~s-
leading information relative to any product or price for any prod-
uct of any member of the Code, or the credit standing or ability
of any member thereof to perform any work or manufacture or
produce any product., or to the conditions of employment among
the employees of any member thereof.
(g) Inducing or attempting to induce by any means any party
to a contract with a members of the Code to violate such contract.
(h) Aiding or abetting any person, firm, association, or corpora-
tron in any unfair practice.
(i) Making or giving to any purchaser of any product any gular-
anty or protection in any form against decline in the market prices
of such product.





9.

(j) Stating i~n the invoice of any product as the date thereof a date
later than the date of the shipment of such product, or including in
ay invoice a.ny product shipped on a date earlier than the date of
@8,01 1RVOlce.
(h Making any sale or contract of sale of any product under
any description which does not fully describe such product in terms
customarily used in the Industry.
(1) Rendering to any purcha.ser of any product in or in connection
with the sale of such product any service, unless fair compensation
for such service shall be paid by such purchaser.
. (m) Any violation of any provision of the Code, whether or not
therein expressed to be such, or using or employing any practice not
herein described which the members by the affirmative vote of three
fourths shall have declared to~ be a practice that would tend to defeat
the policy of Title I of the Nat~ional Industrial Recovery Act and,
therefore, an unfair practice, and of which determination by such
members the Association President shall have given notice to the
members of the Code and to the President.
(n) Making a contract to sell products to a purchaser which is
not as equally binding upon the purchaser as upon the seller. With-
in the meaning of thlis provision, a contract to sell made by any
member of the Code with a purchaser will constitute an unfair
practice unless the contract binds the purchaser:
(1) To a, definite quantity of product within a given time.
(2) All the requirements of the purchaser for a specified product
within a given time.
ARIcLE IXY-REPORTS AND SmarsrxesS

The Code Commlittee shall require the members of the Code from
time to time to furnish such information as shall be necessary for de-
termining assessments and the number of votes each member is entitled
to. Such information is to be held strictly confidential; and no pub-
lication thereof to anyone or in any manner shall be made other than
in combination with similar information furnished by other mem-
bers of the Code, in which case, the publication shall be made only in
such manner as will avoid the disclosing separately of such con-
fidential information.

AnTonL X~-PENALTIES AND DAMAGES

SECTIOx 1. It is hereby agreed by and among all members of the
Code that each member of t-he Code which shall violate any pro-
vision of the Code shall pay the Secretary-Treasurer as and for
liquidated damages a sum of $;.50 per hundredweight for any
product sold by such member in violation of any such provision.
SEO. 2. Except in cases for which liquidated damages are fixed
in .the Code and in cases which shall give rise to actions in tort in
f~avor of one or more members of the Code for damages suffered
by~ it or them, the Code Committee shall have the power from time
'to time to establish the amount of liquidated damages payable by
any member of the Code upon the commission by such member o~f
any act constituting an unfair practice under the Code. Upon the
co~mrmssion by any member of ;the Code of any act. constituting an








unfair practice under the Code and for which liquidatedl damages
are not fixed in t~he Code or which does not give rise to an action
in tort in favor of one or more members of the Code for damages
suffered by it or them, such mlember~s shall be liable to pay to the
S~ec retary-Trreasurer, liqlu dated damages i n the amIount at the time
established by the Code Committee for such unfair practice.
SEC. 3. till amloulnts so paid to or collected by the Secretary-Treas-
ur~er under thlis Article X or under Section 4 of Schedule F of the
Code shall be held2 and disposed of by him as part of the funds
collected under the Code and each member of the Code not guilty
of the unfair practice in respect of which any such amountshl
have been paid or collected shall be credited with its pro rata of
such amount on account of any and all assessments (other than dam-
ages for violation of any provision of the Code) due or to become
due from such member under the Code, such pro rata share to be com-
puted on the same basis as the last previous assessment made against
such member on account of the ex enses of administering the Code
as hereinbefore in Section 5 provide d. All rights of any person who
shall at any time: be the Secretary-Treasurer in respect of any
amounts which shall be payvablye t~o him beenuse of the commission
by any member of the Code of any act constituting an unfair prac-
tice under the Code, whether payable under the provisions of this
Article X or under any other provision of the Code, shall pass to
and become vested in his successor in office upon the appointment
of such successor.
SEc. 4. Each member of the Code by becoming such member agrees
with every other member thereof that the Code constitutes a, valid
and bindingi contract by and among all members of the Code and
that, in addition to all penalties and liabilities imposed by statutes
any violation of any provision of the Code by any member thereof
shall constitute a breach of such contract and shall subject the mem-
h~er guilty of such violation to liability for liquidated damages pur-
sunant to the provisions of the Code. Each member of the Code by
becoming such member thereby assigns, transfers, and delivers to
the Secreta ry-Trreasurer as an individual and not as Secretary-
TreasurerI of the Associaition, in trirust, ll rights and causes of ac-
tion w-hatsoevier w~hichi shall thereafter neerue to such member under
t~he Code for such liquidated damages by reason of any violation of
th~e Code byr any other members t.hereof, and thereby designates and
appo'ints, the Secretary-Treasurer as such individual the true and
law~fuil attor~ney~-in-fac~t of such member to d~emand, sue for, collect,
aindl receipt for any and all amounts which shall be owfing to such
member in respect~r of any such right or enuse of action, and to com-
promise, settle, satisfy, and discharge any such right or cause of
action, all in the name of such member or In the name of thle Secre-
tary-Treasurer individually, as he shall elect.
SEc. 5. Anything in the Code to the contrary notwithstanding, the
Code Committee by thle affirmative vote of two thirds of its members
may waive any liability fo~r liquida~ted damages imposed by or pur-
suant to any provision of the Code for any violation of any pro-
vision thereof, if in its discretion it. shall decide~ that such violation
was innocently made! and that the collection of such damages will
not to any material extent tend to effectuate the policy of Title I of
the National Industrial Recovery Act..








ARTICLE XYI-GENERAL PROVISIONS

SECTION 1. Any notice, demand, or request required or permitted
to be given to or made upon any member of the Code shall be suflFi-
ciently given if mailed postage prepaid addressed to such member at
the address of such member on fi le wi th the Secret~ary -Treasurer. A
waiver in writing signed by any member of the Code of any such
notice, demand, or request and delivered to the Secret~ary-Tlreasurer
shall be deemed to be the equivalent of a notice, demnandl, or request
duly given or made, whether or not such waiver was signed andt
delivered before the time when such notice, demand, or request was
required or permitted to be given or mlade.
SEc. 2. Nothing contained in t~he Code shall be deemed to consti-
tute the members of the Code partners for any purpose. None of
the members of the Code shall be liable in any manner to anyone for
any act of any other member of the Code or for any, act of the
Code Committee, Association President, or the Secreta ry-Treasurer,
or any committee, officer, or employee appointed under the Code.
None of the members of the Code Committee or of any committee
appointed under the Code, nor thle Association President., nor the
Secretary-Treasu rer, nor anyl officer or employee appointed under
the Code shall be liable to anyone for any action or omission t~o act
under the Code, except for his wilful mnisfeeasance or nonfeasance.
Nothing contained in the Code shall be deemedi to confer upon anyT-
one other than a member of the Code any right, claim, or demand
whatsoever against any member of t~he Co~de or against any member
of the C~ode bCommittee or of any committee appointed under the
Code or against the Association President or the Secretary-Treasurer
or any officer or employee appointed under the Code.
SEC. 3. As soon as members of the Industry which would, if th~en
me~mbersc of t~he Code,. have the right to cast at least 75%n of all
the votes that might be cast at. a meeting of the members of the
('ode, if all members of the Industry were then members of the
CodeC~ and present at suich meeting, shall approve of t~he Code, the
Code shall be submitted to the President. pursuant to t~he provisions
of Title I of the National Industrial Recovery Act, and upon the
approval of the Code by the President, pursuant to the provisions
of such Title I, it shall constitute a binding contract by and among
the members of the C:ode, and the provisions thereof shall be the
standards of fair competition for the Industry; subject, however, to
amendment or termination as hereinafter in Article XII provided.
SEo. 4. To the extent required or permitted by or under the pro-
visions of Title I of thle National Industrial Recovery Act the
provisions of the Code shall apply to and be binding upon every
member of the Industry, whether or not such member shall be a
member of the Code. To the extent that it shall be necessary or
proper in order to effectuate the purpose of the Code, the term
"L member of the Code ", wherever used in the Code, shall be deemed
to mean a member of the Industry, but no member of the Industry
which shall not also be a member of the Code shall be entitled to
vote at any meeting of members of the Code or to any other right,
power, or privilege provided in the Code for the members thereof.
SEc. 5. The Code Committee shall have power from time to time
to interpret and construe the provisions of the Code, including but






12

without any limlitation upon the foregoing, the power to determine
what are products within the meaning of that termn as it is used in
the Code. Any interpretation or construction placed upon the Code
by the Code Commnittee shall be final and conclusive upon all members
of the Code.
SEc. 6. Pursuant to subsection (b) of Section 10 of the National
Industrial Recovery Act, the President may fr~om time to time can-
cel or modify any order, approval, license, rule, or regulation issued
under Title I of said Act.
ARTICLE XII-AM~ENDMENTS-TERMINAB~TION

The Code may be amended at any time in the manner hereinafter
provided. Any amendment may be proposed by two members of
the Code. Each amendment so proposed shall be submitted to a,
meeting of the members of the Code which shall be called for such
purpose upon notice given in accordance with the provisions of
Section 4 (a) of Article III and Section 1 of Article XI of the
Code. If at such meeting members of t~he Ciode having the right
to east at least 75%0 of all the votes that might be cast at such meet-
mng, if all the members of the Code were present threatt, shall vote
in favor of the adoption of such amendment, such amendment shall
be submitted to t~he President for approval? if approval thereof by
him shall then be required by law. Every such amendment shall
take effect as a part of the Code upon the adoption thereof by the
members of the Code as above provided and the approval thereof
by the President, if approval thereof by him shall be required as
aforesaid.
The Code shall continue in effect until September 16, 1935, or
until the President declares by proclamation that the emergencies
appointed no longer exist as provided for in Title I of the National
Industrial Recovery Act, in which case it shall continue in effect for
a. period of 90 days after the effective date of such proclamation or
unless Title I of the National Industria~l Recovery Act shall be
repealed, declared invalid, unconstitutional or in any other way
become inoperative in law, in which case the Code shall continue in
effect for a period of 90 days after the date of such termination
provided, however, that if the Industry feels that the Code is o~
mutual benefit the Code may be continued beyond the termination
dates above provided by the affirmative vote of 75%lr of the members
of the Code. It may be terminated at any time after the expira-
tion of such a period by the same action by members of the Code as
is above provided for the amendment thereof. When so terminated
in any manner all obligaations and liabilities under the Code shall
cease, except those for unpaid assessments theretofore made in accord-
ance with the provisions of the Code and those for liquidated dam-
ages theretofore accrued under any provision of the Code.
























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