Code of fair competition for the wood preserving industry as approved on July 13, 1934


Material Information

Code of fair competition for the wood preserving industry as approved on July 13, 1934
Portion of title:
Wood preserving industry
Physical Description:
p. 85-97 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Wood -- Preservation -- United States   ( lcsh )
Preserved wood -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 362-02."
General Note:
"Approved Code No. 481."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004931519
oclc - 63654570
System ID:

Full Text








r sale by the Superintenden of cents Washington, D.C ice 5 cents
For sale by the Superintendeni of Dccuments. Washington, D.C. - P-ice 5 cents

Approved Code No. 481

Registry No. 326-02

This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
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Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
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Detroit, Mich: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
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Jacksonville, Fla.: Chamber of Commerce Building.
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Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pit tsburgh. Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.

Approved Code No. 481



As Approved on July 13, 1934


An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Wood Preserving Industry, and hearings
having been duly held thereon and the annexed report on said Code,
containing 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 Administrator for Industrial Recovery,
pursuant to 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.
Administrator for Industrial Recovery.
Approval recommended:
Division Administrator.
July 13, 1934.




The White House.
SIR: This is a report on the Code of Fair Competition for the
Wood Preserving Industry, as revised after a public hearing con-
ducted in Washington, D.C., on April 6, 1934, in accordance with the
provisions of Title I of the National Industrial Recovery Act.

Employees are not permitted normally to work in excess of eight
hours per day or forty hours per week. When peaks of production
or climatic conditions make necessary longer working periods, forty-
eight hours per week is permitted for not to exceed twelve weeks of
the year. Employees are not permitted to work more than six days
out of any seven.
Hourly limitations do not apply to executives, supervisors, chem-
ists or technical engineers who regularly receive thirty-five dollars
or more per week, nor to outside buyers and outside salesmen; nor
to employees engaged in emergency work involving breakdowns or
the protection of life or property, provided one and one-half times
the normal rate is paid for hours worked in excess of forty-four per
week or ten per day. Employers shall not permit accounting, cleri-
cal or office employees to work in excess of forty hours per week.
Watchmen are not permitted to work in excess of fifty-six hours per
Minimum hourly rates of pay are established in four regional
divisions: (a) forty cents on the Pacific coast, (b) twenty-eight
cents in an intermediate zone between northern and southern regions,
(c) twenty-five cents in the southern region and (d) thirty-five
cents in the balance and geographically larger part of the country.
Female employees performing substantially the same work as male
employees shall receive the same rate of pay as male employees.
Accounting, clerical, office, service, delivery and sales employees,
outside buyers and watchmen shall receive a minimum of either
fifteen, fourteen and one-half or fourteen dollars a week depending
upon the population of the place of their employment but in no
event less than twelve dollars a week. Junior office employees are
limited to five percent of the number of office employees, and shall
receive not less than the minimum of twelve dollars a week.
A minimum rate of pay is established, regardless of whether an
employee is compensated on a time rate, piece work or other basis.
Compensation of employees receiving more than the minimum shall
be equitably adjusted and reported to the Code Authority but in no
event shall rates of pay be reduced. No person under sixteen years
of age shall be employed in the Industry nor any person under
eighteen years of age in hazardous operations.


This Industry is of considerable significance in the conservation of
our forest resources. Through its operations, woods of short natu-
ral life are so treated as to have comparable value in various con-
struction uses, with wood of greater value and even with reinforced
Prior to the National Industrial Recovery Act, the standard work-
week in the Industry was sixty hours. The actual average of hours
worked per week was fifty hours, resulting from various causes.
Under the Code this has been reduced to a standard of forty hours,
with flexibility obtained by permitting a maximum of forty-eight
hours when peaks of demand, weather or other conditions peculiar
to the Industry, require these hours.
Employment in 1929 totaled 10,000 workers. This declined in
June, 1933, to about 5,500. Under the President's Reemployment
Agreement somewhat over 1,000 have been reemployed.
The Code wage rates represent wage increases in the three sec-
tions of the country, of from four to sixty-eight percent over un-
skilled labor rates prevailing in June, 1933. It is estimated that
over thirty-five percent of the plant employees will benefit.
As a result of setting up a borderline territory between the dis-
tinctly northern and southern sections of the country, some improve-
ment in the competitive situation may be expected, in addition to
benefits to labor in this section.

The Assistant Deputy Administrator in his final report to me on
said Code, having found as herein set forth and on the basis of all
the proceedings 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 agri-
cultural 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 50,0'10 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provision of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicant group is
truly representative of the aforesaid Industry.


(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, the Code has been approved.
JULY 13, 1934.



To effectuate the policies of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Code of
Fair Competition for the Wood Preserving Industry, and shall be
the standard of fair competition for this Industry, and shall be
binding upon every member thereof.


SECTION 1. The term Wood Preserving Industry or industry"
as used herein is defined to mean the business of preservatively treat-
ing wood by pressure processes on a commercial basis, involving
sale of services and/or materials whether as a final process or as a
part of a larger or further process.
SEcTION 2. The term pressure processes as used herein is de-
fined to mean those processes in which pressure is employed to force
preservative into wood enclosed in a sealed vessel.
SECTION 3. The term member of the Industry" as used herein
includes any individual, partnership, association, corporation or
other entity engaged in the Industry as above defined, either as an
employer or on his or its own behalf.
SECTIO 4. The term employee as used herein includes any and
all persons engaged in the Industry in any capacity, receiving com-
pensation for his services, irrespective of the nature or method of
payment of such compensation, except a member of the Industry.
SECTION 5. The term employer as used herein includes anyone
in the Industry by whom any such employee is compensated or
SECTION 6. The terms President ", "Act", and "Administrator"
as used herein, mean respectively, the President of the United States,
Title I of the National Industrial Recovery Act, and the Adminis-
trator for Industrial Recovery.
SECTION 7. The terms "population" and "trade areas" as used
herein shall be determined by reference to the latest Federal Census.

SECTION 1. No employee shall be permitted to work in excess of
eight (8) hours per day and/or forty (40) hours per week, except
as provided in later sections of this article, or as climatic conditions
or peaks of product ion make necessary longer working periods, when
additional hours may be worked in any week but not to exceed
a total of ninety-six (96) additional hours in any calendar year and

not to exceed forty-eight (48) hours in any week. If, in such
periods, any employee works in excess of forty-four (44) hours
per week and/or ten (10) hours per day, he shall be compensated for
such excess hours at one and one-half times his normal hourly rate.
SECTION 2. The limitations on hours of work contained herein
shall not apply to executives, supervisors, chemists, technical engi-
neers regularly receiving thirty-five (35) dollars or more per week
nor to outside salesmen and outside buyers; provided, however, that
supervisors engaged in manual labor or mechanical operations are
not included in this exception.
SECTION 3. Employees engaged in emergency work involving
breakdowns or the protection of life or property may be permitted
to work in excess of the maximum hours, provided that all hours
worked in excess of forty-four (44) in any week and/or ten (10)
in any day are paid for by overtime of at least one and one half
times the normal hourly rate.
SECTION 4. Watchmen shall not be permitted to work in excess of
fifty-six (56) hours in any week, no overtime being required.
SECTION 5. Accounting, clerical and office employees shall not. be
permitted to work in excess of forty (40) hours in any week, or
nine (9) hours in any day. A normal day shall not exceed eight
(8) hours.
SECTION 6. No employee shall be permitted to work more than
six (6) days in any seven (7) day period.
SECTION 7. No employer shall knowingly permit any employee to
work for any time which, when added to the time spent at work for
another employer or employers, exceeds the maximum permitted
SECTION 8. Employers shall so administer work in their charge as
to provide a maximum practicable continuity of employment for
their employees.
SECTION 1. No employee, except as herein provided, shall be paid
less than:
(a) Forty (40) cents per hour in the Pacific Coast Region, which
shall consist of the States of California, Oregon, except Wasco
County, and Washington, except Spokane County.
(b) Twenty-eight (28) cents per hour in that part of West Vir-
ginia south and west of the Kanawha and New Rivers; the State of
Kentucky; the southern tier of Indiana Counties which border the
Ohio River; the Illinois Counties of White, Hamilton, Jefferson,
Washington, Randolph and the other counties south of the above
mentioned, in the State of Illinois, and in the State of Virginia,
except, Nansemond and Norfolk Counties.
(c) Twenty-five (25) cents per hour in the States of Texas, Okla-
homa, Arkansas, Louisiana, Mississippi, Tennessee, Florida, Ala-
bama, Georgia, South Carolina, North Carolina and in the Virginia
Counties of Nansemond and Norfolk.
(d) Thirty-five (35) cents per hour in all other states and parts
SECTION 2. Minimum rates of pay established shall apply irre-
spective of whether an employee is compensated on a time rate,
piece work, or other basis.

SECTION 3. Equitable adjustment of compensation of employees
receiving more than the minimum rates of pay herein prescribed
shall be made by all employers who have not heretofore made such
adjustments under the National Industrial Recovery Act and all
employers shall within sixty (60) days after approval of this Code,
report in full to the Code Authority and the Administrator for ap-
proval concerning such adjustments provided, however, that in no
event shall present rates of pay be reduced. Such report shall indi-
cate wages before and after adjustment and the dates of adjustment.
SECTION 4. Accounting, clerical, office, service, delivery and sales
employees, outside buyers, and watchmen, except office boys and
girls, shall be paid not less than fifteen (15) dollars per week in any
city of over 500,000 population, or in the immediate trade area of such
city; nor less than fourteen and one-half (141/2) dollars per week
in any city between 250,000 and 500,000 population, or in the imme-
diate trade area of such city; nor less than fourteen (14) dollars
per week in any city or place of between 2,500 and 250,000 popula-
tion, or in the immediate trade area thereof; nor less than twelve
(12) dollars in places of less than 2,500 population.
Office boys and girls shall be paid at least eighty (80) per cent
of the above minimum weekly rates but in no event less than twelve
(12) dollars per week; provided that the number of such employees
does not exceed five (5) per cent of the total employees in any one
office. Each office may have at least one such employee.
SECTION 5. A person whose earning capacity is limited because of
age or physical or mental handicap may be employed on light work
at a wage below the minimum established by this Code, if the em-
ployer obtains from the state authority designated by the United
States Department of Labor, a certificate authorizing his employ-
ment at such wage as shall be stated in the certificate, but such
employees shall not exceed five per cent of any employer's total
number of employees. Each employer shall file with the Code Au-
thority a list of all such persons employed by him.
SECTION 6. Employers shall make payment of all wages due in
lawful currency or by negotiable check at regular pay periods, which
shall occur at least twice each month. These payments shall be
exempt from any deductions for pensions, insurance or sick bene-
fits other than those voluntarily made by employees or required by
law. The employer or his agent shall accept no rebates directly or
indirectly on any wages.
SECTION 7. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male

SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry, nor anyone under eighteen (18) years of
age at occupations hazardous in nature or detrimental to health.
The Code Authority shall submit to the Administrator for approval
within three (3) months after the effective date of this Code a list
of all such occupations. In any State, an employer shall be deemed
to have complied with .this provision if he shall have on file a cer-
tificate or permit duly issued by the authority in such State empow-

ered to issue employment or age certificates or permits, showing that
the employee is of the required age.
SECTION 2. It is hereby provided that:
(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; and
(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.
SECTION 3. No provision in this Code shall supersede any State
or Federal law which imposes on employers more stringent require-
ments as to the age of employees, wages, hours of work, or as to
safety, health, sanitary or general working conditions, or insurance,
or fire protection, than are imposed by this Code.
SECTION 4. All employers shall post and keep posted official copies
of the labor provisions of this Code in conspicuous places accessible
to all employees. Every member of the Industry shall comply with
all rules and regulations relative to the posting of provisions of
Codes of Fair Competition which may from time to time be
prescribed by the Administrator.
SECTION 5. No employer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge so as to
defeat the purposes or provisions of the Act or of this Code.
SECTION 6. Every employer shall provide for the safety and health
of employees during the hours and at the places of their employ-
ment. Standards for safety and health shall be submitted by the
Code Authority to the Administrator for approval within three (3)
months after the effective date of the Code.
SECTION 7. No employee shall be discharged by reason of making
a complaint or giving evidence with respect to an alleged violation
of this Code.
SECTION 8. No employee now employed at a rate above the mini-
mum shall be di-scharged and reemployed or replaced at a lower rate
for the purpose of evading the provisions of this Code.
SECTION 9. The Code Authority shall make a study of the effects
upon the Industry and upon the employees engaged therein, of the
wage and hour provisions of the Code, having in view the practi-
cability of (1) reducing the maximum hours permitted, (2) increas-
ing the hourly wnage rates, (3) whether Nansemond and Norfolk
Counties. Virginia, shall be included in Paragraph (b) of Section 1,
Article IV, and (4) whether Spokane County, Washington, and
Wasco County, Oregon, shall be excepted from Paragraph (a), Sec-
tion 1, Article IV. A report on this study together with conclusions
and recommendations of the Code Authority shall be submitted to
the Administrator for consideration within three (3) months after
the effective date of the Code.

SECTION 1. To further effectuate the policies of the Act, a Code
Authority is hereby constituted to cooperate with the Administra-
tor in the administration of this Code. This Code Authority shall
consist of members who shall be elected in the following manner
and hold office for one year:
(a) One (1) member to be elected by each company of the Indus-
try having 150,000 cubic feet of treating cylinder capacity or more.
(b) Four (4) members to be elected by the remaining companies
of the Industry on a cubic capacity basis,--one (1) vote for each
cubic foot of treating cylinder capacity.
(c) Two (2) members to be elected by all of the companies of the
Industry on the basis of one (1) vote for each company of the
SECTION 2. With respect to election and representation on the Code
Authority each company, together with its owned and/or controlled
subsidiaries or affiliates, shall be treated as one entity. Only one
representative of such company or entity shall be eligible to mem-
bership on the Code Authority at one time. Each such company or
entity shall have only one (1) vote when voting as a company as
provided in Section 1 of this Article. Companies or entities as
used herein are to be considered in relation to the definition of and
be synonymous with the term member of the Industry in Article
II of this Code.
SETION 3. Treating cylinder capacity for each company or entity
as defined in the preceding Section 2 shall be figured within the
thirty (30) days immediately preceding an election. This capacity
shall be calculated by the following mathematical formula: 3.1416
times inside radius squared times inside length of cylinder.
SECTION 4. A quorum of the Code Authority shall consist of six
(6) of the eight (8) members thereof, which latter number of
members represents the Industry as it is now constituted.
SECTION 5. At any meeting of the Code Authority if a quorum of
six (6) is present, they may act and vote on any matter properly
before them, provided the vote is unanimous.
SECTION 6. If objection to any matter or action is raised by a
member of the Code Authority, then the entire Code Authority must
be polled and the affirmative vote of seven (7) out of the total
membership of eight (8) will be necessary to pass any motion.
SECTlON 7. In the event of a vacancy in the Code Authority, the
remaining members, subject to Sections 5 and 6 on voting, shall fill
such vacancy from the group in which the vacancy occurs before
any further business is transacted.
SECTION 8. A temporary Code Authority is hereby set up and shall
consist of the individuals who were named in a resolution at a meet-
ing in Chicago on August 21, 1933, to represent the Industry in the
negotiations with the National Recovery Administration and to
negotiate for the Industry this Code; said resolution was amended
by a unanimous vote in a resolution adopted at Washington, D.C.,
by the Committee acting for the Industry on April 23, 1934. This
temporary Code Authority shall serve for a period of ninety (90)


days after the effective date of this Code, and until its successors
are elected in the manner above provided.
SECTION 9. In addition to membership on both the temporary and
permanent Code Authorities as herein provided, there may be three
(3) members, without vote and without cost to the Industry, to be
known as Administration members, to be appointed by the Adminis-
trator to serve for such terms as he may specify.
SECTION 10. The temporary Code Authority shall act as an agency
for holding the election of the permanent Code Authority. It shall
cause notice to be sent to all members of the Industry who are regis-
tered with it or whose names and addresses can be ascertained by
reasonable inquiry, by registered mail ten (10) days preceding the
date of the election. Votes shall be cast in the manner above pre-
scribed and votes may be cast either in person, by proxy, or by letter
SECTION 11. Nominations may be made through a nominating
committee appointed by the Code Authority, but members of the
Industry shall have the right to make nominations from the floor, or
vote for any individuals of their choice, by specifying their names in
the written proxies or in the letter ballots. Nominations when made
shall be made in accord with Section 1, paragraphs (a), (b) and
(c) of this Article.
SECTION 12. Any industrial association or group 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 associa-
tion, bylaws, regulations, and any amendments when made thereto,
together with such other information as to membership, organiza-
tion, and activities as the Administrator may deem necessary to
effectuate the purposes of the Act.
SECTION 13. In order that the Code Authority shall at all times
be truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may prescribe
such hearings as he may deem proper; and thereafter, if he shall
find that the Code Authority is not truly representative or does not
in other respects comply with the provisions of the act, may require
an appropriate modification in the method of selection of the Code
SECTION 14. Nothing in this Code shall constitute the members of
the Code Authority partners for any purpose. Nor shall any mem-
ber of the Code Authority be liable in any manner to anyone for any
act of any other member 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 act
or omission to act under this Code, except for his own wilful mis-
feasance or nonfeasance.
SECTION 15. Any interested party shall have the right of com-
plaint to the Code Authority or proper agency and a prompt hear-
ing and decision thereon. Any interested party shall have the right
to appeal to the Administrator, under such rules and regulations as
the Administrator shall prescribe, with respect to any decision, rule,
regulation, order, or finding made. by the Code Authority.

SECTION 16. 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
proceed with such action in its original or modified form.
SECTION 17. Subject to such rules and regulations as may be issued
by the Administrator, the Code Authority shall have the following
powers and duties, in addition to those authorized by other provisions
of this Code:
(a) To insure the execution of the provisions of this Code and to
provide for the compliance of the Industry with the provisions of
the Act.
(b)To adopt bylaws and rules and regulations for its procedure.
(c) To obtain from members of the Industry such information
and reports as are required for the administration of the Code. In
addition to information to be submitted to the Code Authority, all
or any of the persons subject to this Code, shall furnish such statis-
tical information as the Administrator may deem necessary for the
purposes recited in Section 3 (a) of said Act to such Government
agencies as the Administrator may designate; nor shall anything in
this Code relieve any person of any existing obligation to furnish
reports to Government agencies.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities 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 administration of this Code with such other Codes,
if any, as may be related to or affect members of the Industry.
SECTION 18. It being found necessary to support the administra.
tion of this Code, and to maintain the standards of fair competition
established by this Code and to effectuate the policy of the Act, the
Code Authority is authorized, subject to the approval of the Admin-
istrator, to incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Code; and to submit
to the Administrator for his approval, subject to such notice and op-
portunity to be heard as he may deem necessary, (1) an itemized
budget of its estimated expenses for the foregoing purposes, and, (2)
an equitable basis on which the funds necessary to support such
budget shall be contributed by members of the Industry. After
such budget and basis of contribution have been approved by the
Administrator, the Code Authority shall determine the amount of
such contributions and secure the same as above set forth, and to that
end, if necessary, may institute legal proceedings therefore in its
own name. The Code Authority shall neither incur nor pay any

obligation in excess of the amount thereof as estimated in its ap-
proved budget, except upon approval of the Administrator; and no
subsequent budget shall contain any deficiency item for expenditures
in excess of prior budget estimates except those which the Adminis-
trator shall have so approved.
SECTION 19. Only members of the Industry complying with the
Code and contributing to the expenses of its administration, as pro-
vided in Section 18 hereof, shall be entitled to participate in the
selection of the members of the Code Authority or to receive the
benefit of its voluntary activities or to make use of any emblem or
insignia of the National Recovery Administration.
SECTION 20. Each member of the Industry shall pay his or its
equitable contribution to the expenses of maintaining the Code
Authority pro rated according to treating cylinder capacity.
SECTION 21. The Code Authority is authorized to recommend to
the Administrator any action or measures deemed advisable, includ-
ing further fair trade practice provisions to govern members of the
Industry in their relations with each other or with other trades or
industries; measures for industrial planning, and stabilization of
employment; and including modifications of this Code which shall
become effective as part hereof upon approval by the Administrator
after such notice and hearing as he may specify.
SECTION 22. The Code Authority is authorized to appoint a Trade
Practice Committee which shall meet with the Trade Practice Com-
mittees appointed under such other codes as may be related to the
Industry for the purpose of formulating fair trade practices to
govern the relationships between production and distribution em-
ployers under this Code and under such other Codes to the end that
such fair trade practices may be proposed to the Administrator as
amendments to this Code and such other Codes.

SECTION 1. The Code Authority shall cause to be formulated
methods of cost finding and accounting capable of use by all members
of the Industry, and shall submit such methods to the Administrator
for review. If approved by the Administrator, full information
concerning such methods shall be made available to all members of
the Industry. Thereafter, each member of the Industry shall utilize
such methods to the extent found practicable. Nothing herein con-
tained shall be construed to permit the Code Authority, any agent
thereof, or any member of the Industry to suggest uniform additions,
percentages or differentials or other uniform items of costs which
are designed to bring about arbitrary uniformity of costs or prices.

It shall constitute an act of unfair competition for a member of
the Industry to:
(a) Secretly offer or make any payment or allowance of a rebate,
refIundl, coiirmi-sion, credit, unearned discount or excess allowance,
whether in the form of money or otherwise, nor shall a member of
the Industry secretly offer or extend to any customer any special

service or privilege not extended to all customers of the same class,
for the purpose of influencing a sale.
(b) Disseminate any false or misleading information relative to
any product or price for any product, within the Industry, of any
member of the Industry, or the credit standing or ability of any
member thereof to perform any work or manufacture or produce
any such product, or to the conditions of employment among the
employees of any member thereof.
(c) Give, permit to be given, or offer to give, anything of value
for the purpose of influencing or rewarding the action of any em-
ployee, agent, or representative of another in relation to the busi-
ness 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 provision shall not be construed to pro-
hibit free and general distribution of articles commonly used for
advertising except so far as such articles are actually used for com-
mercial bribery as hereinabove defined.


SECTION 1. No provision of this Code shall be interpreted or ap-
plied in such manner as to promote or permit monopolies or monopo-
listic practices; permit or encourage unfair competition; eliminate
or oppress small enterprises or discriminate against them.

SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regu-
lation issued under Title I of said Act and specifically, but without
limitation, to the right of the President to cancel or modify his
approval of this Code or any conditions imposed by him upon his
approval thereof.
SECTION 2. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes in circum-
stances, such modification to be based upon application to the Ad-
ministrator and such notice and hearing as he shall specify, and to
become effective on approval of the President.


SECTION 1. Violation by any member of this Industry of any of
the provisions of this Code or any approved amendment hereof is an
unfair method of competition.


SEcrION 1. This Code shall become effective on the third Monday
after its approval by the President.
Approved Code No. 481.
Registry 326-02.

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