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NATIONAL RECOVERY ADIMINISTRATION
CODE OF FAIR COMPETITION\
AS SUBMIITTED ON AUGUST 29, 1933
REGISTRY No. 329--03
The Code for the Toothpick Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
WE DO OUR PART
WASHINGTON : 1933
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CODE OF FAIR CO~MPETITIION OF THEE AMIERICAN1I
The Amnericanl Wood Toothpicki Ind-ustry, through its Trade Asso-
ciation known as The Toothpyick; Institute, comprising pr,1actically
1~007 of the total numbr of Toothtpick M\anufacturers in the U~nited
States, hlas adlopt~ed the following Code ofi Fair Competition which
shall become effectivTe for the Indlustry the second Mllonday after the
date upon which it shall be approvedl byr the Presidlent of the United
Th"le term "L Toothpic'k Inrdustry "' as used in this Code is dlefned
to mean. the manufacture for sale of wood toothpicks and shall apply
to and include all corporations, companies, and individullals enga~ged
in th~e manufacture of any or all types or kinds of woodl tolothpickis.
The term "( Emplo~er "' as usedl herein shall include every person
engagedl in the manufacture of toothpickbs as herein defied.
The term Emplovee "" means only an employee in the Ind~ustry.
DECLARATION OF PURPOSE
Ther purpIose of this Code is to make effective in the TCoothpicr IIn-
dustry the pr~ovisions of the National Industrial RcovPery Act and
all rules andc regulations issued und~er the terms of that Act.
Noting contained in this Code shall be used directly or indirectly
as a mlenns of promoting monopoly-, of eliminating or oppr~essi~ng
small enter~prise~s, or of dliscrimlinating against then; nor shall any
provisions be intler~pr~eted to permit monopolies or monopolistic
Participation in this Code shall be open to all cor~poratiojns. com-.
panies, and individuals nlow or here fter engagedl in the ma nufacture
of toothpicks who signify their wPillingnress to conlforma to the provi-
sions of t~he National I~ndustrial Recovery Act, to abide by the rules
establishedl under this Code, and to contribute: their propor~tionat~e
share of the cost of adtministerinsr and enforcing this Code.
COIMPLIANCE WITH THIE ACT
It is specifically agireedl in aIcc~ordanclc~ w-ith the pov-isions of the
National Industrianl Recovery Act:
(1) Thant employees shall havec the right to organize and bargain
collectivrely through repr~esentative s of their own ch~oosing; andl shall
be free flrom the interference: restraint, or coercion of emlployers of
labor or their agvents. in thle designation of such representatives, or in
self-organization or in other concerted activities for the purpose of
collect i ve bargaining or other mutual aid or protection;
(2) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union or
to refrain from joining, orgamizmg, or assistingr a labor organization
of his own choosing; and
(3) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
(4) It is clearly understood that the foregoinlg paragraphs do not
imparir in any particular the constitutional rights of the empllloyee and
employer to bargain individually or collectively as may be n~utuallly
satisfnetoryS to them.; nor does it impair the joint right of emp~loyetr
or emrployece to operate on a basis of collective bar71ga~ining' or mutual
unlde~rtandingl without influence of any outside agency.
(5) Nothing in this Code is to prevent the selection, r~etentionr, and
advancemnent of employees on the basis of their individual mler~it,
without regard to their affiliation or nonaffiliation withl any orgami-
The r~eintions between employees and employers of this Industry
are, and have been for many years, on a mutually sat~isfactory basiis,
and nothing contained in the above condition is constr~ued~ as r~equiriln g
or contemplating a change in these relations.
EMIPLOYMIENTI O1F MINORS
On or after the effective date, employers shall not employ in or
about their plants or industry any person under the age of sixteen
ADMLINISTRA-TIONS AND SUPIERVIJSION
The Toothpickr Institute, being the Trade Association of th~e ALmeri-
can Toothpick Industry, is hereby designated the agency, through its
~Execu~tive Commnittee, for administerfhing supervsnad rmtn
thne performance of the provisions of ti oe
To effectuate the policies of the National Indlustr~ial Recovery Act,
and for the proper functioning of this Code under its provisions, it
shall be the duty of each employer to furnish to thre Executive Com-
mittee, of the Toothpick Institute such information and data as the
Committee may from time to time request in respect to production,
costs, wvage rates, hours of work, stocks on hand, sales and prices,
and such other information as the Commnittee mlay deem~n necessary or
desirable for their use in supervising the provisions of this Code and
for transmittal to the President of the United States when, as, and
if required under the provisions of the Act. 1Except as otherwise
provided in the NEationlal Industrial Recover! ~Act, a~llstatistical data
fiele in accordance with. the provisions of this paragraph shall be
confidential, and the data of one employer shall not be revealed to
any other employer.
Failure on the part of any employer to furlnish to the Committee
the above-namned data and information upon 1request to do so, or th-e
furnishing of false data or misleading information, shall be dleemedcl
a, violatioin of this Code of Fair Competition.
1. With a view to effectunti nlg t~he? policy of the Act,. t-he T oot~hpickr
Indulstry shall make studies a1nd: fonrmlante pjlanls to equalize produet-
tionn wituh demand alnd shall fr~om time to time make r~ecomlmenda~tions
in relation~ thnereto andl may propose agreemlents or amnendlments to
this Code decsigned~ to carryv such recommendations into effect. The
Executive Comnmittee mayJ for~m Ilde c su~ch plans as they may determine
to equalize production and demlandl and may include same in their
subordinate codes or present the same to the Adml~inistrantor through
the Toothlpick Industry Execultive Committee.
2. Each members shall, forthwrithl, r~egister with the Toothpick In-
dustryS Executive Commri-ttee all of his productiv-e machinlezry, and
shall fur~nishl such other informlationl as to location, age, and condition
of sulch machinery and the extent to which' it has been operated in
recent years, and as to the kind or tySpe of product or products which
arre niow being produced on such mnachrines as the Toothpick Indlustry
Executivse Committee may require.
3. Subject to review of the Administr~ator the Toothpickr Industlry
Exrecutive Comm~ittee shall have the right to determine whether and
to what extent any such mnachinery may be properly classed as pro-
ductive machinery; or to the classification by products of such ma-
chinery and if registered in more than one classification, the per-
centage in each classification.
4. Prior to the installation by any person engaged in thlis industry
of any T~oothpick Mlachines not now under contract or in the process
of installation, except for r~eplacements wcPithout substantial increase
in productive capacity, a certificate shall first be obtained from the
Administrator that such installation will be consistent, with effectu-
ating the policy of the Act during the period of the emergency.
ACCOUNTING AND) CosTI SYSTEMS
Each emnployer sha~ll install in his respective company as soon after
t~his Codp is effective asi shall be? pra~r~cticable, an accoulnting andl cost
system, adopted and approved by the Executive Committee of The
Toothpick Institute whichl shall be uniformly throughout the Indlus-
try, thie installation of such a system being hereby d~eclaredl necessary
in order to dletermnine fairly andl correctly costs and for other pulr-
poses for the proper functioningr of this Code.
HOURS OF W'ORK
No employer engaged in the manufacture of Toothpicks shall em-
ploy any worker on a weekly schedule. in excess of forty (40) hours~.
except in the case of executives, those emiployed in ofte wForkl and
m a supervisory capacity, electricians, and firemen, and those em-
ployed in repair, mnaintenatnce, shipping, emergaency, and in technical
work; and provided, how-ever, that these limitations shall not ap-
ply to seasonable or pea~k times, which would~ place an unusulal and
temporary burden for production upon the mzanufacturer; in, such
cases no employee shall be permittedl to work more than an aggr~e-
gate of one hundred forty-fouxr hours (144) per year in excess of
the limitations hereinbefore provided, andl provided further that
iulch limiitationis shall not apply in ca~ses of emetr~gency.. Monthly re-
ports shall be made of the nlumlber1 of muan-hours worked in. that
month for em~eltrgc yS reasons.
On and after the effective date the mlinimluml rates of pay per
hour which shall be paid by employers to anyl of their employees
(except apprentices) engaged in the processing of the pr~oducts of
the ind'ustr~y and in laboring operations incid-ent thereto, shall be
Ma\Ile, 40 cents per h~our.
Female, 30 cents per hour.
It shall be the purpose of this Code to equalize production withl
demand. Plans to a~compllishl such equalization will be worked out.
UNFAIR METHODS OF COM PETITION~
For all purlposes~ of the Code, the acts hereinafter de~scr~i~edl shall
c~onstitu~te unfair practices. Such unlfair pene~tices and all other
practices which shall be declared to be ulnfair practices by the Exec-
utive Commnittee of the Toothpick I~nstitute or by any amlendmlent of
th~e Code, shall be deemed to be unfair methods of competition and
commerce, and the using~ or employing of any of them shall be
d~~rleeme to be a violation of the Code, and any member of thie In-
dustry which shall dilrect-ly or indirectly through any ofli~cer or emn-
ployee,. agent or r~epresetntat\, ivec,knoingly use or employ any of such
unfair practices shall be gu~iltty of a violationl of the Code,
The following ne~ts or pratctices are hereby peciifically declared to
constitute unfair methods of competition and are forbiddenlrl undler
(a) Selling below cost; except for export;
(b) Selllinlg below prices set forth in published lists 1clreqir~ed- to
be issued~ by each manulfacturer;
(c) IDiscriminating in price;
(d) Givlngr or necectpting rebates, secret or o~therwise~, Irefunrl s or
conuniss~ions; in the form of monemyl, gifts, or oth~erwise. Temkn
or promllising to any purchaser or prospclrtiver purchaser or anyy
officer or employee. agenlt or representative, of any such p~urchaser
or pr.ospective purchaser, any bribe, Flratu~it y, gift, or any- o-th~er pay-
men~lt or' r'Emnera(ltion dirtlyccfS or indirectly;
(e) Alismiark ing, ra isb~r ending, or miSl'epr'esentfinIg products;
(f) Manking of false andi dispar~aging~ statemenrlts r~egardcing com-
p'etitor~s or their products;
(g) Paying~ or allow\ingr a c~olnunissionl or di(',lf cOnt o a Federal or
(h) Gularanteei ngE prices and floor stc,~ks againcst decline in
(i) Stor~ing of goods with customers;
(j) Allowing a credit or discount to customersL' on aes-onutlll of
ad~vertisingr or on neil.Countl of any allegedly service of any kindl wha~t-
(k) AP~llowing a credit or discount to r'lusltomers onI neCc'(unlt of
(1) MTaking of cales through~ brokerls, except under uniform wrlittenl
con-tract adaptedl by the Institute;
(m) Permitting broker:, <.1 distr~ibutc lrs or iallesmen on1 conunlli.-ion
to split or divide colnunsicsnsio
(n) 1Permiitting br1ok~ers to ownm stocks andi do their own billing;
(0) Makling of sales to distributors not undrlC 1 unniorrm wrlitften
contract adop~ltedl by th~e Ins~titlte;
(p) Giving or allow~ingF dizscountsi to volulntary chains, buying
syndlenates. or simnilarl organizations;
(q) Sales by dtistr~ibultor, s andi brokers except, at the same prlices.:
ter~ms. and conditions as the mannufacturer;;
(r) Extenlding termlis of payment beyond thirty (30) dayss froml
date of shipment;
(s) Thie acc~eptanee of orders for stap~le prodlucts for shipment
more than thirty (30) delays~ beyondl date of the order;
(t) S~ale. of pool cars~ at other than L-CL prices;
(u) Inuc~ing or attemlpting to indues by any means any party to
Ia c~ontranct w-ith~ a memberlljil of the Code to violate such. contract;
(v) T~he making of b~lankict, c~onrtracts;
(w) The consiganillvng of stocks to the jbin g~~ncs trade in anyr manlnle r
and for anzy purpose;
(x) Postdating or A~ntednting invoices;
(y) For any company to issue an invoice~ to any purchanser which~
does not. show the precise qluantity delivered andc the net cost to the
purchaser of suich qua~ntity.
ADJUS8TTIENT OF CONTRACTS
Because of the increase in cost of mnanufacture of toothpicks by
reason of the National Industrial Recovery Act and the required
compliance therewith, it is unfair to compllete or carry out contracts
enter~ed into prior to the pa~ssae oft the Act at contract pr1ices. Such
increase in price should be obtained as will fairly comlpensatt e thle
mlanufactulrer for the ad'ditional cost of manufacture.
VALIDITY OF PROVISIONS
If any provision of this Code is declared invalid or unIen for~cen~ble,
the remaining provisions th~ereof shall nevertheless continue in full
force and~ effect in the samne ma~nner as if th~eyv had been1 separal~tely
presented for appr'ovanl andl' had beerln appr1ovedt by the Prc-esident.
UNIVERSITY OF FLORIDA
3 1262 08582 9116
CANGELLATION OR MOCDIFICA\TION
In accordance with Section 10 (b) of the National Industrial
Recovery Act, any provision of this Code may~ at any time be can-
c~elled or modified by the President.
The Executive Committee of the Toothpick Instit~ut~e is hereby
empltowered and instructed to submit this Code for a-pproval to the
President of the U~nited States or his .duly authorized representative
and to act for and represent the Association and its individual
members in all matters pertaining to the adoption of this Code and
its functioning if and when approved by the President., subject to
the provisions of the NEa~tional Indulstrial Recovery Act, and such
rules and regulations as may be issued thereunder.
THCE TOOTHPICKi INSTITUTE:
W., B. GLEASON,
F1RANK .S BUTLR,
NIED r. ]BEGLE,
We hereby agree to and approve the above and foregoing as the
Code of Fair Competition of the American T1Coothpick Indtustry~.
ESTATE OF CHARLES FO)RSTER,
CHARLES .V BUTLR Priesidlent.
`HARDW\OOD PRODUCTS CO., TNC.,
WV. B. GLEASrONv, MA~arurg7.
GENERAL OODENWARIE CORP.,
M. ]E, Gmxlv, Assista~t Secrletary.
NED F. BEGLE, Ple~sidenzt.
J. H. WE~cAVEiR.