1. Executive Order
2. Letter of Transmittal
UNIV. OFL .
GOVERNMENT PRINTING OFFICE
For sae by the Superintendent of Documents, Wa;shington, D.C. Price 5 cents
Registry No. 610--1--01
NATIONAL RECOVERY APDMINISTRATION
CODE OF FAhIR COMPETITION
AS APPROVED ON OCTOBER 31, 1933
*This publication is for sale by the Superintendent of Documents, Government
Printing Office, WS7ashington D).C., and byT district offices of the Bureau of Foreign
pnd Domestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
B3oston, Mass.: 1801 Customhouse.
Buff~talo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio : Chamber of Commerce.
Dallas, Tex.: C'lunnnl~r~r of Commerce Building.
Detroit, MVich.: 2213 First National Building.
Houston, Tex.: Chamber of Commoerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonv~ille, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif : 1163 South BroadwRay.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 federal Building.
Ml~~cinepolis, Mlinn. : 213 FEedleral Buiblingr.
Nuewr Orleans, La.: Room 225-A, Customuhouse.
N\ewv Yfork, N.Y.: 734 Custombouse.
N~orfolk, Va.: 406 East Plume Street.
Philadelphiia, Pa.: 933 Commercial Trust Building,
Pittsburgh, Pa.; Chamuubllr of Commerce Buibtling.
Portland, Oreg.: 215 New P'ost Office Building.
St. Louis, Mon.: 506 Olive Street.
San Fran~isc~o, Calif.: 310 Custombouse.
Seattle, Wash.: 809 Fel~eleral Building.
CODE OFIi EAIR COMZPETITION FOR HE: FERTILIZER TNDUSTRY
An application having been duly made, pm'sunnt to and in full
compliance with the provisions of title I of the N~ational Indlusjtrial
Recovery Act, approved June 16, 1933, for mly approval of a Code
of F'air C~ompetition for the Fe~rtilizer Ind~ustry, and hearings having
been held thereon andc the Administrator having rendered his report
containing an analysis of the said code of fair competition together
with his .recommlendationss and findings with respect thereto, and
the Admlinistrator having found that the said code of fair c~omp-eti-
tion. complies in all respects with the pertinoent provisions of title I
of said act and that the requirementsn of clausesi (1) andl (2) of sub-
section (a) of section 3 of the said act have beenl met:
NOWC, T'HEREFORE, I, Franklinr D. REoosevelt, Precsidetlc of the
ULnited States, pursuant to the authority vetedf~r in. me by title I
of the National Indlustry Riecovery Acet, approvedl June 16i, 1933,
and ortherw~ise, do adopt and approve the report, recomllmen datiton s,
and findings of the Administrator and do orde~r that the said code
of fair competition be, a~nd is hercby, approved.
FR"IAuNKLI D). ROOSEV7ELT'.
THaE WHT~ITE HOUSE,
October 31, 19JJ3.
Approval recommended :
HUGH S. JoIN s on,
Admn in istrIa to r.
185 6 "--188-110---33
OcTOBZER 25, 1_933.
The Wthite Houzcse, Wo~sk in gton, D.C7.
SmR: This is a report of the h~earingr on the Cod~e of Fiair Compe-
tition for the ~Fertilizer Industry conducted in WC~ashingtono on the
6th of September 1933 in accordance with the provisions of the
National Industrial Recovery Act.
Pnovisions or TaIs CODE: As To HIouas AN WAGES
SECTIOCN 2. 2MaCi"7UtW Z@TIL #097 Of Lab~or.-a-. No employee in the
fertilizer industry shall be required or permllittedc to work more than
40 hours in, any one week or eight hours in, an~y one day except as
1. Foremnen, supe~trintendenclts, manngers,~ salesmten, chemists, and
2. During the rush of the planting season the hours of labor may
exceed the maximum above prescribed by eight hours a weekz, and in
the case of skilled key men the hours of labor may exceed the mlaxi-
mum above prescribed by 20 hours in. any week, but in no even'It shall
employees be permitted to work more than. an average of 40 hours a
week ov\er any cocns~cutiive four-mont~hs' p~eriodc.
3. Office emplloyees shall not be required or permitted to wcork
more than an avern gosi of 40 hours a weekcl in any four months' period.
4. Employees engagedcl~ inl any cocntinuo.us operation when other
competenlt empllloyees are readily av-ailablle for such wrork shall not
be r~equired or p~ermittedl to workr more than 40 hoursrl in an~y one
weetk, azd. in no case m7ore thanr 48 hours in anly one w\teek.
5. Repair' shop crews\-, engineecrs, e~lectr~ic'iann and waltichingr crews
shal l not be required or permitted~ to work more than 40 hours in
any one week, withn a tolerance of 10 percent, except inl the case of
b. Overtime shall be paid at the rate of one and one third times
the nrormlal ra:te for all wRorkz in the excess of weight hours a day!, except
in the case of office employees.
c. Every employee in thne fertilizer industry shall be enltitle~d to
one dlay of rest a week11.
F1ecrI(Is 3. M1iin7imwn1 Ilrfts of PaY.-a8. No employee in thne fer-
lilizer industry shall be paid lesthan. the following: 35 cen~ts an
hour in thle! Northern alrea~, 95 (1nts~ an. hour in the South~ern areca,
i.i renti; an hour in thne Midwest'crn'l arm~~, 40 cents an hour in the
P~c~ifilc Coast area~, and 20 cen~lts an hour in Puerto Rico.
b. TIIhe Northern areal'~ll ensui~Ces Ma~ine,' New\~ Hampshlll~ire, Verneyl,lf
Massa~(.tlrchu-ett Connelcctic.nlt, Rhode~tr Island~, NewM Yorki Pennsll ynnia-"':~
N1;ew Jersey, Mar~lylandl (exsc'cpt thne Easter Shor), N~ewen';tle
Counlty of Dc'laware'C, D~istrict of Columbinl, and WCe~st Virginia.
c. The Soulthern area comprises Kent and Sussexr Counties of
D~elawatre, the Eastern Slhore of Malr~lanrd, Virginia, N~orth .Carolina,
Southi Carolina, Georgia, Florida, Alabama, Mississippi, Ailrkansas,
Louisiana, Oklahoma, Texas, and Tennesse~e.
d. The M~id-western area compr~ises Ohio, Illinois, Indiana, Ken-
tucky, Mlissouri, Kansas, Ne~brnashn, South Dankrta. NRorth. Daklota,
Colorado, Neew Mecxico, Arizona, W1yoming, Mlontaina, MIichigan,,
W'isconsin M~inneso~ta and Iowa.
e. The Pacific Coast area comprises WVashington, Oregon, Califor-
nia, Idahlo, Nev~ada, and Utah.
ECONOMIC EFEC OF THE% CODE
Thne Fertilizer Inmdustry, as covered by the attachedc- Code, is an
industry whorse activity is intimate~ly connected~ wcith the income and
purchasing power of the farmer. Since 1929 gross agricultural in-
com-re has dleclined from $10,000,000,000 to a little over $400,000,000,00
and has bleen accompannied by a decline in annual fertilizer consumpll-
tion from 8,000,000 tons to 4,000,000 tons.
Basically, this Code covers the mixers of fertilizer, some 600 in
number, operating approxsimtel~y 800 plants. Nearly three fourths
of these plants are located in the o~ne-crop sections of the South. and
Southeast producing fer-tilizer to be used in connection with thle
cotton and tobacco crops. In addition to the m~ixed fertilizer pro-
durced by these plants, certain unmixied substannces, such as potash,
nitrogen ca rriers a nd so forth, which ma~y be used~c directly on thle
soil, are in competition with mixed fertilizer. A large proportion of
such1 material is handled by the fertilizer mixing concerns, but some
portion is mnarkieted- dlirectf to dtlaeales and c~onsumerslr by the producers
of such materials, and~ even by therir importers. Importations of
nitrate carriers, such as Chilean nitra~te of soda, potash from Ger-
many and superlpho.phate from Japan, have a serio-us effect on this
industry rand, to a certain extent, have contributed to the demoraliza-
tion of the ind~usty.. ]For this reason the Code contains a great
number of unfair trade pIrnc~tices which. are to be prochibtited, andl
covers not only the mlixing of fertilizer and its inunedC('iate sale,
but also cov~ers (as far as sales to dealers and collunsumes are con-
cerned) the distribultionl of the completing p~rodu~rcts.
It is believed that, for the ultimate good of the farmler, the con-
trol prescribed and permnitted in this Codle is essential. In view of
these conditions, however, it is highlly important that the Govern-
ment representation onr the operation of this Code exercises carefully
The fertilizer industry is one with extremely seasonal operation.
Thirty-five percent of the annual production of this indlustry is
moveed in one month and 85%0 of it is moved in approximately
three months of each year. This period is a period of farm nc-tiity.
The. product is bulky9 and the plants, as a whole, are located near the
consumer--that is, in agricultural ar~eas. The percentage of common
labor reaches to more than 700c of the total labor employed and
is of th2e farm labor type. I~t seems important, therefore, that scales
of wages be not set up so high as to disrupt. the agricultural situation
inr the vicinity of fertilizer factories.
The highest reciordtedl employment in th-e fertilizer industry was
reached in Miarch 1929, w~hen. nearly 38,000 w-orketrs were empl~yved.
The average or more normal figure of :10BS was 33,000 employees.
This had dl(1ecreased in ~103 to only 21.000 empllloyues. The abov-e
figures, of course, apply to the peakz 5teason, dluringr which the
greatest~ portion of fertiiz~r is b;Eing~ mixedc and dellive~edl.
The reduction in hours in this Code to an ave~age of 40 for a
four months' peFriod, with cve~t imet for all wor1k in excess off eight
hours per day, should increase the numuber of employees in the leenk
season to a7boutl 27,500 workers at the same scale of pur~chnaing by
agriculture as now exists. It is to be~ presumlled, how-ever, that bet-
terment in prices of the products of agriculture will permit the pulr-
chn~e of increased quanttities of fertilizer.
The wages e~stablishec d in this Coder are suchl as to increase nearly
100'3I of the employees in the Southern area, and~ 90r0 of the em-
ployees in the Northern and Wester~n areas. It wFill increase the
wageb'- of nearly 780.; of the employees in the 1Pacific Coast area.
The average wage in the Southern area in 1923 was 13.7 cents per
hour, whereas the Code provides a minimum walge of 25 cents per
hour. The azverage~ wager for the spring of 1023~ in the NJorther~n
Ar~en wars 26.5 cents per hour, while thne Code procvid~es 35 cents per
hour. It will be seen, therefore, that nlot only will this Code in-
crease employment materially, but will raise very greatly the rate
of pay throughout the entire United States.
W~/hile the absolute wag~e rates providedt by the Code still are not
high, it is believed that this industry with its close interlocki with
agriculture can be affected only adversely if higher mlinimu mn wagE~es
The Adm~iniistrator finds that (a) The Code as recomnmendled com-
plies in all respects withi the pertinent provisions of Title I of the
Act, inc~ludting,. without limitation, subsection~ (a) of Section 7 and
substection. (b) of Section 10 thereof ; and that
(b) T'he applicant group imposes no inequitable restrictions onl
ad-missioln to mem~~be~rship therein andc is truly r~epresenltative of the
Fertilizer Ind~ustry; and that
(c) The Code as reccommlnende is not de1signedl to promote monop-
olieis or to eliminated or oppress small enterprises and will not operate
to dliscriminatee against them, and will tend to effectuateo the policy
of Title I of the Nat~ional Indlustrial Recovery A~ct.
It is recommended, therefore, that this Code be immediately
HUGH S. JOHNSON,
CODE OF FAIR, COMIPETITION F`OR THME FERTCILIZE'R
The olloing revisions shall constitute the Code of F'air Comn-
petiion or te fetilizer~ industry under the National Industrial
I~t is the purpose- of this Code to aid in. eliminating from. the fer-
tilizer industry destructive and unfair methods of competition,
waste, and improper practices, to place the industry upon a sounder
basis and better enable it to serve labor and, agriculture by bringing;
about higher wages, shorter working hours, better living conditions
for employees, fair prices, and high-quality products for the farmer,
and reasonable profit to the producers of fertilizer and to the
SECTION 1. a. The term fertilizer industry as used herein in-
cludes the im~portation, production, and/or distribution of mixed
fertilizer, superphosphate, and/or other fertilizer materials. This
Code does not cover sulph~uric acid, nor does it cover dealers.
This Code does nost cover the production of potash, phosphate rock,
and/or nitrogenr carriers, nor does it cover their distribution to
producers and to persons other than dealers or consumers. This
C~ode does cover thne sale and distribution of potash, phosphate rock,
anld/or nitrogen carriers to dtneales and/or consumers, whether made
directly or through agents: P~rovidedi, howrev~er, that such sale and
dtistrib~ution by producers of such manterials shall be exempted from
the provisions of Article V7, Prodluction and New Capne~ity; Article
VI, Price Prov~isions, Section 1, Sales B~elow Cost Prohibited; and
Sections 1, 2, 4, 5, and 6 of _Article VI'I, Mlarke;ting Provisions,
and shall also be exempllted from thne requirements of Article IX,
Reports and Statistic~s, to thne extent that producers of such mla-
terials shall not be required thereunder to submit any reports or
information concerning their costs of production, wages, hours of
laboi*, other conditions of labor, or prices to others than. dealers or
coflsu me rs
b. In the event that anyT producer or imp~or~ter of potash, pho~s-
phnate rock~, or nitrogen carriers makles no sale of mixed fertilizer,
superphosphate, or other fertilizer mater~ial to dealers and/or con-
sumers, none of the provisions of this Code shall apply to such, pro-
ducer or importer. -Provided, further, that if and when the pro-
ducers and/or importers of potash shall havet filed a Code of Fiair
i(competit~ion covering the sale and distribution of potash to d~ealerj
and/or consumers, which Code shall contain provisions the same as
Article VI1, Section 2, Open-Price Schedules; Article: VII, Section
3, Distr~iburtion Through Coo~perative A2sisociations, Section 7, Mleth-
ods of Quoc~tingr Prices, Merthodls of Distribution, and Methtlods of De-
livery!, Sc-tionl 8, Exempiltions from Ma~1rketin Provl\isions. and~ all
Sections of Article VIII, Unfair Practices Prohlibjitedl, in the form
as approved by the President herein, and such Code w-ithl such pro-
visions shall have been approved by the Pre~sident and b~c~omle ef-
fective, such sale and distribution of potash shall be exemptedl en-
tirely from this Code. Similarly, if and when the pr~oducerss and/"or
imlpo'ter.s~ of phos~phate rock and/or nitr~ogen carriers shall have
filed a Code of Fair Comnpetition covering the sale and distribution
of phosphate rock and/or nitrogen c~arrIie~rs to dealers and/or conr-
sumers, whl~ich Code shall contain the pr~ovisio~ns just rec~itedl, and
Eluch~ Code w~ithl sulch provisions shall have been app~roved~c by the
President and b~ecocme effective, such sale and distribution of phlos-
phate rock and/or nitrogen carriers shall be exempted entirely from.
SEc. 2. The term "L employee as used herein includes any person
engaged in any p~hase of the industry in anycpctyintentr
of employee, irrespectivse of the me~thod~ o f pa"iymn of- this com-u
SC3~~. 3. TPhe term~n employer as used herein, includes anyone
for whose benefit .such an employee is so engag~ed.
SEc. 4l. The t~rmn '"mixed fertilizer "' means any combination or
mixture of fertilizer materials, dlesignedc and fit for use in inducing
increased crop yields or plant growth when applied to the soil.
SEc. 5. The termz fertilizer material '" means any substance whiich
is usedl with a7nother sub~tance in the manufacture of mixed fertil-
izers, or for direct application to the soil, principally as a source of
plant food, except unmanipulated manures of dlom~st'ic, origin.
SEC. 6, Th~e term superphosphaI'h te means thie product resulting
from mixing rock: phosphate and sulphuric acid and/or phosphoric
SEC. 7. The trrrm grale as appliedl to mixedir fert~ilize-r, shlaU
represent the minimum guarantee of its plant' food expressed in sterns
of nitrogecn, available phosphoric ac~id, andc w~ater soluble potash, and
sulch olthcr sub~stanlices as many be guaranteed.
SEC. 8. The te~rm dealer "' meanls any person, other than a pro-
ducer, r-ngaged- in the business of burying mixed fertilizer. super-
phosphat'e. and/or o~therr fertilizer malter~ial for the purpose of selling:
at a profit. One buying~ for his own use, or pr~inc~ipally f'or hIis own
use and that of his te~nantsi, shall not be deemedcl to be a dealer. A
group of unincorporated consumelcr buyers nefting collectively or
throughrl an indlividrual for thle purpose of conltractingr for a joint order
is not a dealer.
SIEC. 9. The term1 L a Cent Illearts any pyersc-n engage<] in thes busi-
nress of distributing( mlixedr fertilizer, supcr~phosphalte and/or other
fertilizer malter~ials for a fixed comnpensation as providedl in the pro-
uctler'"s prlil'e list, and wtho guaranntees the whole and comlell~tte
performa~1:n1.e of the sterns of his contral~ct with the producer.
SqEc. 10. rThe termll Fertilize~r Riecov\eryS Collnuittee melans the
Commit~tee clreatedl in accorda~nce with Ar~ticle III of this Code.
SEC. 11. The term L"zone" means a geographical division of the
United States established~ under Article II[I of this Code.
SEO. 12. The term "' producer means any member of the industry
engaged in the business of p~reparing, T1mixin, manufacturing, or
import~ina mixedl fertilizer, superphosphate, and/or other fertilizer
manterial bfor sale.
SfEe.INo 1. To effectuate furrthler the policies of the Act, a F'erti-
lizer Recovery Committee is hereby designated to cooperate with the
Administrator as a Planning and Fiair Practice Agency for the
fertilizer industry. This Commlllittee, constituting the Code Acuthor-
ity, shall consist of not less than twopelve representatives of the
fertilizer industry selected by a fair method of selection to be ap-
proved by the Admninistrator. Three members without vote may be
appointed by the Ptresident of the United Stateis.
~SEC. 2. The Code Authority is hereby ermpowjpered to collect from
the industry such statistical information as, in the opinion of the
Administrator, mnay be necessary to effectuate Title I of the Nia-
tionatl Industrial Recovery Act and thlis Code. In addition to
such information there shall be furnished to the 1Federal TIrade
Commission, for the use of the President of the United States, such
information as the Fiederal TIrade Comnmission or the President may
deem, necessary for the purposes recited in. Section 3 (a) of the
National Industrial Recovery Act. Such information mnay include
wages, hours of labor, prices, production, stocks, orders, shipments,
production capacity, and costs. Any7 or all information furnished
to the ~Federal Trade Commission by any member of the industry
shall be subject to checking by said Commission for the purpose of
verification by an examination of the books alnd accounts and
:records of such, member.
SEc. 3. In1 carrying out its functions, said Committeer, subject to
the approval of the Adminmistrator, is authorized to divide the United
States into appropriate trade zones `based on. such geographical,
trade, and/or other conditions as shall best serve the purposes of this
Code, and to change such zones from time to time as may be found
SEc. 4. The Code Authority may delegate or appoint individuals
and subcommittees inl carrying out its administrative work, with
such of its power or powers as may from time to time be conferred
by thne Code ~Authnority upon. said Indiv~iduals or subcommittees, re-
sponsibilityT, however, to remain with the Code Authority.
SEC. 5. TIhe Code; Auth~ority shall appoint, from its own memnber-
ship, an Administrative Committee of eight members. Said Com-
mittee shall exercise such au~thlority as may have been delegated to it
by the Code Authority except that the Administrative Comnmittee
shall not make recommendations for the amendment of this Code
unless recommendations for such amendments have been. approved
in writing by two thirds of the members of the Code Authority.
The ALdministrative Committee shall serve as the executiv-e agency of
the F'ertilizer Recovery Committee, which constitutes the Code
ARTICLE IV -LABOR Pnon'sIoNs
SEcTION i. TCo~lldeive nairga/inl~g.--Pu rsuant. to Section. 7 (a) of
the Na~tional Indusl~itrial Rec~overy Act, the following provisions are?
hereby embodied in and prescribed as part of this Code:
a. That employees shall have the right to organize a7nd bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of empllloyers of
labor, or their agents, in the designation of such :rep~resentat~ivesi or in
self-organization or mn other concerted activities for the purpose of
collective bal~rgining or other mutual aid or protection.
b. That no employee and no one seeking employment shall. be
required as a condition of employment to jomn any company union
oir to reframn from. joimng, orgamizmg, or assisting a labor organl-
zation of his own. chnoosing.
c. That employers shall comply with the maximum hours of,
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by thie President.
SEC. 2. IMGaaimcum HozLrs of Labor.--a. No employee in the fer-
tilizer industry shall be required or permitted to ~work more t~han 40
hours in anyT one week: or eight hours in any one day except as
1. Foremen, superintendents, managers, salesmen, chemists, and
2. During the rush of th~e planting season the hours of labor may
exceed the maxrimum above prescribed by eight hours a weekad
in the case of skilled key men the hours of labor may excee .the
maxrimum above prescribed by 20 hours in any weer,~ but- in no
event shall employees be permitted to work more than an av~erage of
40 hours a weekr over any consecutive four-mzonths' period.
3. Office employees shall not be required or perm~ittedl to work
more than an average of 40 hours a week in any four-months' period.
4. Employees engaged in any continuous operation when other
competent employees are readily available for such wor~k shall not be:
required or permlt tell to work more than 40 hours in any one ~eiek,
and in no case more than 48 hours in any one week.
5. Re~pair shop c~rew\s, enlgineers, electricinn~s, and watchingr crews
shall not be required or permitted to wcork more than 4l0 h~ours in any'
one week, with a tolerance of 10 per cent, except in ~the case o
b. Ovetrtimle shall be paid at the rate3 of one and one third times
the normal rate: for all workr in the excess of eight hours a day, except
in the ca~se of office employees.
c. Every employee in the fertilizer industry shall be entit~ledl to
one day of rest a week.
SEc.. 3. 2ilintM77 Rate8 Of Pay.-R. NO employee in the fertilizer
industry shall be paid less than the following: 35 cents an hour in the
Northern arena, 25 cents: an holur in, the Soulther~n area, 35 cents an.
houlr in the Mlid western area, 40 cents an hour in the ]Pacific Coast
aren~l, and 20 cenlts an hlour in P~uerto Rico.
b. The NorthetrnI are~a compllrises Maine Nrew9 Hamnpshire, V~ermont,
Massachusettstt- Colnnec~tilcut. Rhodel Islancd, New IYork, Pennsylvania,
New Jersey, Marylland (exstcept te Eanstelrn Shore), Newf Castle
Counlty of Dclalware, District of Columibia, and West Virginia.
c. The Southern area comprises Kenlt arid Sussexe iCounties of
Delaw-are, th Eastern. Shore of Marylandc, Virginia, North Caro-
lina. Southl Car~olinaL, Georgin, Florida~, Alaha~ma, Miississippi, Arkan-
sas, Louisiana, O~klahomnl, Texas, and 'ITennessee.
d. The Mlidwe-ster~n area comprises Ohio, Illino~is, Ilnd:iana, Ken-
tucky, Mlissoulri, Kansas, N~ebraska, South Dakota, North Da;k()ta,
Colorado, Nhew Mi~exico, Ar~izona, W7yomring, Mofrntana, Mlichligan,
W'isconsin, Mfinnesota, and Iowa.
e. Thze Pacific Coast area comprises Waoshington, Oregrrn, Cali-
fornia, Idaho, Nevada, and Utah.
SEC. 4. Child Laorol Proh~ibite~d.--No employee under the age of
16 years shall be employed in the fertilizer industry.
S~lEC. 5. ReCCLassifi~cation of Funcltionl~S Prohlib'ited.-Th ere shall be
no evasion of this Code by reclassification of the function of emn-
ployees. An employee shall not be included in any of the exceptions
set forth above unless the identical functions were identically classi-
fled on June 15i, 1933.
AnnOCLE V-RODUCTION AND) NEW CAPACITY
Should it at anyT time appear that the policy of Title I of the
National Industrial Recovery Act will not be efec~tuatedl in the indus-
try because of overproduction, the Fe~rtilizer Recovery Committee
may submit to the Administrator recomnmendations for amendments
to this Clode or for such other action as may be appropriate.
AerlCLE vI DRIC'E PROVISIONSI
SEcTION: 1. ~S~aild Belore Cost Prohiited~~.--The sale or offer for
sale by any producer of mixed fertilizer, super~phosp~hate, and/or
other fertilizer material at a, price below his cost except to meet
existing competition is hereby- prohibited. The terml cost "" as used
herein means the cost determined in accord~anc~e with. uniforlm rneth-
ods of accounting which shall be prescribed hereunder by the Fer-
tilizer Recovery Committee with the approval of the National Rtcoc-v-
eryv Adlminis~tration. Such cost shall properly define the differences
in factory, mannufactulring, and mixing costs, and costs of distribut-
ing the product to producers, dealers, agents, and co-nsumellrs, and
such differences in cost shall be reflected in the sales price to eachi of
SEC. 2. Openl Pr)~ice Schedules.-a.t W~ithin five days after this Code
becomes effective each producer shall file with the Secretary of The
National Fertilizer Associat~ion :
1. A, statement showing in what zones said producer intends to
sell mixed fertilizer, superphosphate, and/or other fertilizer .mate-
2. A scedule by zones of t~he prices than in effect or to be charged
for all grades or kinds of mixed fertilizer, superphosphate, and/or
other fertilizer material sold or offered2 for sale to dealers, agents,
or consumers byT such producer, together with the terms and condli-
tions applicable; there to and,
3. Shall mail or deliver true copies of such schedule to his com-
petitors in t~he zones where such producer does business.
b. If the original schedule so filed byT any producer represents any
change in his then existing prices, terms, or conditions, it shall
not become effective until the exrpirattion of 48 hours after it is filed.
After the original schedule is filed, nlo mixed fertilizer, superphos-
phate, and/or other fertilizer material shall be sold or offered for
sale by such producer at a price or on terms or conditions other
than as specified in said schedule or in a new schedule that has
become effective pursuant to the provisions of this Section.
c. No new schedule advazncing or reducing anyJ price or changing
the terms or conditions shall be deemed~~l- to have become effective
hereunder until a date and hour ten days after it has been filed
with the Secretary of The National Fertilizer AIssociation and unless
simultaneously with such filing true copies thereof have been mailed
or delivered by such producer to other producers in the zo-ne~s where
the producer who files the schedule is doing business, except that
any such schedule filed to meet a ne~w or changed schedule filed by
a competitor may become effective on the same date and hour that
the competitor's schedule becomest effective if a copy thereof is
filed with the Secretary of The ~National Fertilizer Association and
copies have been mailed or delivered to other producers in the same
zones at least 48 hours before such effective date and hour. Any
original, ne~w, or changed schedule when filed shall be open to
inspection by any producer.
d. Upon receipt from any producer of any original or new sched-
ule representing a change in prices, terms, or conditions, the Secre-
tary of The Nationatl Fertilizer Association shall immed iately mailh
to such producer and to other producers in the zones to whichuc
schedule relates a notice of the date and hour of filing of such
schedule and when it becomes effective.
e. There shall be attached to each schedule filed hereunder a state-
ment specifying the changes made therein from the last preceding
schedule. The original schedule of each producer filed hereunder
shall be numbered one and all subsequent schedules or changes
in schedules shall be numbered serially in accordance with a uniform.
plan of numbering prescribed by The ~National Fertilizer Association.
ARTICLE V~TII--MARKETINa PRovisions
SECTION 1. Reduction in Number Of Grade8 Of Aised Ftediltzer.--
In order to eliminate waste and reduce the cost of malnufalcture,
bearing in mind the economic interest of the farmer, a list of grades
suitable to meet the agricultural needs of each State or of each zone,
as the case may be, mayJ be established by the producers in such zone
or State acting through a zone committee, in cooperation with
agronomists and other Fedetral and State agricultural officials, sub-
ject to the approval of the National Reco~very Administration1.
After such, grades have been established for such State or zone, the
salet or offer for salle thcreinl of mixed~ fertilizer not conlfor~mirm to
the grades so established shall be considered an unfair trade prac-
tice, provided that the sale of special formllulas or special ingrredient~s
in standrlnld formulas maoy h~e made to satisfy bona fide orde~rs from
cus~tomerlls if adeq~ruate add~itio~nal chalrge is matde for mixing costs as
determnined for the particular plant under the uniform accounting
methods presccribed in Art~icle3 VI pu h xr oto pca
materials used;: and provided that thi~s shal notr prevt any spro-
ducer fromn selling or offering for salle twoc extra gnrades for lawrns
and- F'ardenslr in vJar~ious-sized~ pazckages nrot to exrceted 100 pounds a
SwC. 2.r Sales~~; Thrioug/h Commiz-1s~sion, T ?raving S~l~-alesmea Pro-
hibitedl.-No travelinr salesman shall be emp~loyed on a colnunision
basis for thne saleF olf mnixed~ fertilizer, ,~uperphali (sphatet and/lor other
fertilizer ma;terial. Such1 sales shalll bet made only through~I regular,
legitimate, slr:~1ied( ;Icallesme wor~king~ undert~ the control of thle pro-
ducer~t. This Section shall niot apply to thet State of Florida.
SiEC. 3. D~isibu~ltion Th~irouglh Coopel.rletire~ Association.--a. Any
duce~rs andc regu~rlarly incorporal~uted funnrsrlr' ojrlanizatio~~l.ns engaged~ in
the var7Iious activities commoulc n to such organizations andr principally
eng~aged~ in a bona fide wholesale ~usin~ess or their divisions or depart-
mentss granlting~ special rates, commissions, or concecs.-ion,l or the
division of procfits. mai~y be co~ntinuedl, entered into, an 1 perfonnelllcl,
prov8ided thant -uch~l sales are not- belowlp the prod~.uc~er's price as pro-
vridedl in Article VI", Serction 1 of this Colle, and that it shall be
obligatory upon such copc~lerative orga~~nizatio:ns to ma:irrtain the pro-
ducer's schedule of prices to their dlealer~s andc consumers in the areas
b. No prov-isions of this Code shall be interpreted: as preventing
farmers' cooperative corporations from pay~ing patronagel dividends
as authorized by law.
SEC. $.--$Gl&& t0 Dea0, 67/1- Gn ON8rr 7llne Throu/lgh Brokcers Pro-
hibifted.-The sale by thne producer of mlixed fertilizer andrl/or ba~gged
superp~hosphate to thae deal~r or consumerr through b~roklers is .here~by
SEc. 5. Unriformn Co~idr~actv.-S ubject to the approv-al of the Na-
tional Recovery Adcministr~ation, the Fertilizer Recoveryv Commrittee
is author~izedl to p~repar~e andl prescrib~e, according to ayppropriate
zones established' byv it, uniformly forms of c~onltracts .for use in the
sale by produrer~s of mixed fe~rtilizer, super~pho~spIhate, and/or other
fertilizer mlaterial. After such forms have been so pr~escrib~ed- for
any zone as to any type-of tranrsaction. the sale by any prod~c'ucer in
such zone of mied fertilizer, sup~erphosphate,, and/or other fer-
tilizer material under any forml of contract for such type of trans-
action other than the form so pr~escribed isi hereby p~ro-hib~itled.
SEC. 6, IIn~l~ce/AyaltO Of Infcrtsof8-?Tbe FertillZef Recovery Com-
mittee is uthorltcrizedl to inve~stigante or caus~e t~o be inv-estiga~ted~ and to
report to the NiTational Recortrvery Aministration~ in behalf of the fer-
tilizer industry thle facts as to the importation into the Uniter S~t~ates
and Puerto Rico of mixed fertilizer, supelrphlosp~hate, nd/lor other
fertilizer material in. substantial quantities or increasiing ratio to
domestic prodr~uct~ion and on such term or under such conditions as to
render ineffective or seriously to endanger the maintenance of this
SEO. ?. 12~etOds of Quroting Prices, Methodsr of Dl~;fistriution, andr
Methods of Deilver~y.The producers in each zone, notingr in accordl-
ance with procedure established by th F'ertilizer Rtecovery Commit-
tee and subject to its approval, a~re authlorized to prepare unform
f}ules, not inconsistent with any provision in this Code, governing
the methods of quoting prices, methods of distribution, and methods
of delivrry, including tr-ucking allowances, to be used in the sale of
mixed fertilizer, superphlosphate, and/or other fertilizer material in
suIch zone! or subdivision thereof. Such rules, when so prepared and
approved by the FL~ertilizer Recovr~ery Commnittee, shall be submitted
to the N'ational Recovery Administration, and when approved by it
shall be binding upon all producers selling said products in such zone
or subdivision thereof.
SEc. 8. ~E.zirentptions from Miarketing Prouisions.--a. In viewcl of
the peculiar marketing conditions existing in zone 11a, it is ex-
emzpted -from Section 2 of Artic~le VII, Marketing Provisions, of
b. The States of Idaho, U7tah, Mfontana, Colorado, Wyoming, and
Nbraska:1~- are exempllt from all regu~latoryr rullesc pertainingr to sales.
AnaxIci; VIII -UNFAIR PRACTICEs PROHIBITED
The following shall be deemed to be unfair competition within.
the meaning of the National Industrial Reccovery Act and are thereby
~SEC'TIoxS 1. The defamation of a competitor by falsely imputing
to such competitor dishonorable conduct, inability to perform con-
trancts, questionable credit standing, or by other false representations,
or the false disparagement of the grade or quality of his goods, with
the tendency and capacity to mislead or deceive purchasers or
Sw~. 2. The payment or allowance, except as required by law, of
rebattes, refunds, or unearned commissions or discounts, or of claims
known to be false or unjustified, whether in the form of money or
otherwise, or extending to certain purchasers special services or
privleges not extendled to all purchasers under like terms and
SEc. 3. The payment to any person who is not a dealer or agent,
as defined hlereiln, in connection withl the sale of any mixed fertilizer,
sulperphosphate, and/or other fertilizer material2 of any complensa-
tion or allow-anc~e to which a dealer or agent is entitled.
SEC. 4. WSithholding from or inserting in any invoice a statement
which makes the invoice false regn rding the whole or any part of
the tranrsaction rep~resentedl on the face thereof.
SoC~. 5. Providing transportation. without a~dequa'te charge for it,
or I~reimbursinlg, the dealer, agent, purchlaser, or consignee for the
costs of transportation if reimbursement is not provided for in1 the
producer's price list.
LSEC 16 T Operation or use by a producer of any wanrehocuse ow~nedl
or controlled by such, producer, or of any wa:re~houlse or wanrehouse
sprnce cl~ease by him for the storllage of mixsed fertilizer, superphos-
phal~te, and/or other fertilizer mnte~r~ial, in such way or under such
c.i I~Lrcumstnces as to result in the granting of rebates, or special
allowances from thze contract price of'any mlixed :fertilizer, super-
phospha~l~lte, and/or other fertilizer mlaterial sold or off~r~ed for sale
by suchl p'''lrodcer, or the making by an~y prodlucer in connection with
the sale of mlixedt fertilizer, superph'tosp hate,, and/or other fertilizer
material of an allowance for warehousing not included in his price
S~c 7.Selingor consigrningr chemicals andt materials with special
conesion o a reucd rilce given to ind~uce the p~urchasnie of
mixedt fertilizer, supecrphosphante, anid/or other fertilizer material.
SEC. 8. FROUTOe tO eRIOTOO in good faith1 the terms of contracts
prev"\iouslly made for the sale of mixed fertilizer, su perphosplhate,
undlc/or other fertilirzeir material, as for examp~lle:-
a. Selling on terms that require the payment of sight draft onl
p~resenltation of bill of Inding (S.D.B.L.) and then waiving the ob-
ligation to pay cashl before documents or goods are delivered, thus
dteferr~ing the paymenclt of the cash to some future date.
b. Selling and deliver1inlg goods onl time, consignment, or open
bill of lading terms on S.D>.B.L. price, or wYaiving earned interest.
SEC. 9. FUPDni~ilillng special containers, preparing special formulas
for individual buyers or consignees, or using special ingredients in
standcar~d formulas, without adeqtcua~te charge for the cost of such.
c~onta~inlers, formulas, or special ingredients, as an. inducement to thze
makling of a contratl~ct anrd/or sale.
SEC'. 10. Maklling special allowa~nce to buyers or consignees umder
the gu~ise~ of advertising expense, or giving anyT other form of
Scjc. 11. Adopting selling methods that promote secret rebates and
concessions, such as:
a. Employing -a buyer or consignee or hnis agent or anyone em-
ployed by or connected with a buyer or consignee with the purpose,
design, and effect of influencing the business of such customer.
b. Carrying on books by seller or consignee as d~elinqluent balances
due by solvent customer with no intention of requiring ultimate
pay men t.
SEC. 12. Enabling the purchaser or consignee to obtain mlixred fer-
tilizer, superphosphate, and/or other fertilizer madter~ial apparently
on cash terms, but in fact on credit extended to him by or through
the producer, as, for example:
a. A transaction covtlered by a sight draft and bill of hudlng under
which the purchaser or consignee is mnade to appear as honoring
documents upon pre-senltationl byr payment with his own funds, when
in fact the cash. involved was obtained in whole or in part upon a ne-
got~iabtle instrument (usually discounted at a bank) bearing the en-
dlorsemelnt of the producer; or
b. A transaction by which the producer, although he does not actu-
ally endorse the obligatio en, ecse r ~ ~ ~ ~ s~~~~ederls himself legally or morally re-
sponsibjle for its paymentifteprherocnsgesalfilo
meet his obligation. to the bank at maturityT.
SIEC. 13. Refund'ing to the buyerl or consignee, neither directly or
indirectly, any part of the purchase price on accoun-t of goods ac-
cepted and/or settled for by the buyer or consignee under the terms
of the contract. This practice is commrronly referred to as retro-
SEc. 14. The gualnranteecingr of prices aIgainst decline to dealers,
agents, or consumers.
SEc. 15. Inducing the breachz of anly contract for the sale of mixred
fertilizer, superphosphate, and/or other fertilizer material byv off'er-
ing a lower price to the purchaser under such contract, or by any
SEc. 16. Thne false marking or branding of any product of thle in-
dustry which has the tendency to mislead or deceive customers or
prospective customers as to the grade, quality, quantity, substance,
character, nature, origin, size, finish, or preparation.
SEC. 17. The making or causing or permitting to be made or pub-
lished of anyT false, untrue, or deceptive statement by way of adver-
tisement or otherwise concerning the grade, quality, qattsb
stance, chnaracter, nature, origin, size, or preparation of any product
of the industry~ having the tendency and capacity to mislead or
deceive purchasers or prospective purchasers.
SEC. 18. FuTnIlShing of mixed fertilizer, superphosphate, and/or
other fertilizer material by a producer to any consumer wcith 'the
understanding that payment therefore shall be! made by turning over
to such. producer a quantity, fixed in advance and without reference
to thne market price, of the crop produced by the use of such fertilizer.
ARTICLE IXT--REPORTS AND STATISTICS
SECTION 1. The F'ertilizer Reco~very Committee is authorized to
prescr"ibe, subject to thne approval of the Aldministrator, regulations
requiring the submission by producers at such reasonable times as
it may designate, of reports containing information necessary for
the administration andi enforcement of this Code, including wages,
hours of labor, other conditions of labor, prices, marketing practices,
and such other items as may be required. Such reports shall be
submitted only to the executive officer of T~he ~National Fertilizer
Association. Except as otherwise provided in this Code, all reports
submitted hereunder shall be treated as confidential and shall be
open to inspection only by the persons employed by the Fertilizer
Recovery Committee to administer this Code and by the authorized
officials of the ~Nat~ional Recoveryr Administration.
ARTICLE X GENERAL PROVISIONS
SECTION 1. No provision in this Code shall be interpreted or ap-
plied in such a manner as to:
a. Promote monopolies or monop~olistic prIacti~es;
b. Permit or encourage unfair competition;
c. Eliminate or oppress small enterprises; or
d. Discriminate algain~t~ small e~nterprise-s.
SoClr. 2. This Code and all the prov,\irsions thereof aret expressly
made subject to the right of the President, in necor~dance with the
provision of Subsection (b) of Section 10 of the National I~n-
dus~t rin1 R~cove\ryS Act, from time to time to cancel or mlod-ify any~
ord~ler, approval, license, rule, or regulation issuled underTilI
of n;ia Act, and speccifictally, but without limitation, to the right of
thle P~residtent to cancel or modify his app"roval of this Code or any
condlc'itions imposed by him upon hnis appl~rovnl th~ereof.
See:r. 3. Noth~imlr in this Code shall be dleemned to constitute the
partic~ip~ants theremn partners for any purpose.
SEC. 4. Within each State, melmbers of thte industry shall comnrply
wGith. any law~s of such. State imposuing~ more s~tringelnt req~ui remnc~lts,
regniIn~ting the aeof employees, wngesrt~, hours~t of wocrki, or hecnlth,
fire, genlcra;l w~orking onditions,, or standa~lrds of conunaic~l ity.
AnRcra~ XI--FEES AND) EXPENNESE
Each prodrucer .subject to the jurii~sic~tio-n of this Code and ac-
~ep't ing ther benefits of the a ct i vi ties of the Code Authority hzereunller,
shanll pay to the Code Authority his proportionate share of the
amocunits unnecessary to pay the cost of a.ssemblllingf, analyzing, and
pu"blientio~n of such reports and data, and of the maintenal~nce: of the
said Code A2uthority a~nd: its activities, as the Code Authority, with
the approva\'l of the Administrator, may prescribe.
ARTIcLE XII -A aExuaxIFs~
Thne rIightt is hereby rtlelerved to alter, anllndl~ or Isupplemen~lt this
Code at any time by a majority vo~tr of the! Ff-rtilizer~ Recov~ery Com-
mittee, sub~ject to the approval of the President of the United States.
ARTICLE XIII- EFFECTIVE DATE
This Code shall b~comne effective on the tenth day a fter its approva:\'l
by the Pltiresient; of the Unitedt States and shall terminate on June 16,
1935, or sooner if the Pre~sidet~~t shall by proclamation or the Con-
grress shall by joint resolution declare that the emerg~enl recognized
bySection 1 of the ~National Indlustrial Recov-cery Act 11Las ended.r
LIST orE ZONEs ESTABLISHED FOR ADMIN~rISTRATION OF CODE FOR THE $ERTILIZEB
Zone No. 1:
Zone No. 2:
Zone No. 8:
District of Columbia
Virginia north of James River in-
cluding Accomac and Northamp-
WJest Virginia (B. & O. Section)
Zone No. j:
Virginia south of James River in-
cludingg Richzmond .
W7est Virginia (C. & O. Section)
Zone No. 5: South CarolinaI
Zone No. 6:
Florida starting with the eastern
boundaries of Columbia, Su-
wance, Lafayette, and T'aylor
counties and extending west to
the Apalachicola Rtiver
Zone No. 7: Florida east and south of
Suwanee, Columbia, Lafayette, and
Zone No. 8:
Florida west of the Apalachicola
L~ouisiana east of the Ilississippi
Zone No. 9:
Louisiana west of Mississippi
Zonze No. 10:
Zone No. 11a:
Zone No. 116:
Zone No. 110: Hawaii
Zone No. 18: Puerto Rico
FERTILIZERr RECOVERY GOMIMITTEE
Jorhn J. Waltson, International Agricultural Corporation, Newv York City,
Charle~ J. Brandf, The National F'ertilizer Association, Washington, D.0,C
Zone No. 1
E. H. Jones, Alpo~thecariess H3all Co., WVaterbury, Conn.
Zone No. 2
H-orace Bowker, The IAmerican Agricultural C'lwmnil:al Co., NewFc York, N.Y,
T. E. M\illinionl, Cooperative G. L. F`. Mills, Buffalo, N.Y.
E. H. Westlakre, Tennessee Corp., New York, N.Y.
Zone N~o. 8
B. Hi. Brewvster, Jr., The B~augh & Sons Co., Blaltimnore, Md.
C'. F~. Hockley, The Davison Chemical Co., Baltimore, Mdd.
WT. W. Price, Smyrna, Del.
WV. E. Valliant, Valliant Fertilizer Co., Baltimlore, Md~.
Zone No. g
C. F. ]Burroughs, F. S. RoylJsci r Guano Co., Norfolk, Va.
G. A. Holdernless, Virginia-Carolina Che~mical Corp., Riiluchmond, Va.
Osjcar F. Smith, Smith-Douglass Co., Norfolk, Va.
Thomas H3. Wright, Aeme Mondlu~~cturi ing Co., Wilmington, N.C.
Zonte No. 5
J. Ross Itanahan, Planters Fertilizer &t Phosphate Co., Charleston, S.O.
A. F'. Pr1inllel, Melrchants Fertilizer Co., Charlestaut~lu S.C.
J. D. Prothro, Aik~en Fertilizerl Co., Aikren, S.C.
Zone No. 6
H. B. Baylor, International Agr.~iculturll~ Corp., Atlanita, Ga.
J. E. Sanford, Armour FTertilizer W;Sorkrs, Atlanta, Ga.
A. D. Strobhar, Southernl' Fertilizer & (lc~liemcal Co., Savannah, Ga.
Zone No. 7
C. T. MeIlvin, The Gulf FerItilizerl l Co., Tamupa, Fila.
R. B3. Trueman, Trueman Fertilizer Co., Jacksonvluillez, Fla.
Zone No. 8
E. A. B3randis, Standar1d Chemical Co., Troy, Ala.
J. W1~. Dean, Kinloxville F~ertilizer Co., Knoxville, Tenn.
C. D. Jolrdan, The Southern Cotton Oil Co., New Orleans, La.
Zone No. 9
P. Hr. Mannire, Manrshall Cotton Oil Co., M~arshall, Texas
C. D. Shallenberger, Shreveport Fertiliz~er W~orks, Shlreveport, La.
Zone No. 10
L. W. Rtowell, Swift & Co. Chicago, Ill.
Zonze No. 11a
Weller Noble, The Pacific Guanlo &t Fertilizer Co., Berkeley, Calif.
Z one N o. 116
George R. Clapp,~ Swift & Co., N~orth Portland, Oregon
John J. Watson
Charles J. Brand
B. H. Brewster, Jr.
C. T. Mielvin
Oscar Fi. Smith
A. D. Strobhar
W. ]E. Vallianlt
UNIVERSITY OF FLORIDA
3 1262 085;82 9124