Registry No. 1218--10
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
The Code for the Fluorspar 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 thle approval of
the National Recovery Adrninzatration
as applying to this industry
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
For sale by the Superintendent of Documents, Washington, D.O. - Price 5 rents
AS SUBlulITTED ON SEPTElilBER 2, 1933
WE DO OUR PART
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TENTATIVE DRAFT' OF CODE FOR TH]-IE FLUORSPAR
INDUSTRY, AUGUST 25, 1933
This code is submitted by producers of ~fluorspar in Illinois and
Kientucky~, these two States heretofore having produced more than
90%b of all the fluorspar m~ined in the United States.
This code is offered pursuant to Title I of the National Industrial
RecoveryS Act, and the purpose of th~e code is to eAfectuate the policy
Industry. "--T'he mining, milling, and sale of fluorspar through-
out the UnIited States.
"'Person."-An individual, partnership, association, or corporation.
"' Products. "--Fluorspar in anly form.
"i Producer. "--Any person engaged in mining, milling, or selling the
products of the industry.
ARTICLE II^I--MAXIMUM IJ[0URS AND MINIMUM AGES
(1), After the effective date of this code, no producer shall employ
any worker under sixteen years of age and sharll comnplyy with all lawus
of his State with respect to child labor.
(2) After the effective date of this code, no producer shall work: any
accounting, clerical, office, service, or sales employees (except outside
salesmen) in any office or department for more than. forty hours in
any one week.
(3) After the effective date of this code, no producer shall employ
any factory or mechanical worker or artisan more than a maximum
week of forty hourls anid shall not employ anly worker more than eight
hours in any one day.
(4i) The maximum hours fixed in thce foregoing paragraphs (2) and
(3) shall not. appnly ton e~mployees~ in a, malnagrerial, executive, advisory,
or t~echniedl capacity, who now receive more than $35 per week;
nor to employees on emergency, manintenance, and repair work; nor
to very special cases where underground lining crews are working
in difficult or unusual mining conditions where knowledge of these
conditions and of the peculiarities of thze ground is highly desirable
and where employment of substitute crews is not practical and where
a limitation on the hours of work would unalvoidably reduce produc-
t~ion and employment; provided that no such undergrond mining
crew shall be worked more than a maximum of eighlt hours in any one
day or forty-eight hours in any one week.
(5) It is agreed not to pay any of the classes of employees mentioned
in paragraph (2) less than $15 per w~eek in any city of over 500,000
10198--33 (1 1
population, or in the immediate trade area of such city; not less than
$14 per week ini an~y city of between 2,500 and 250,000 popuIa~tion, or
in the immediate trade area of such, city; and in towns of less than
2,500 population, to increase all such wvages by~ not less than 20%Cr,
provided that ths shall not require wages in excess of $12 per wetek.
(6) It is agreed not to pay an~y emnployee of the classes mlent~ioned
in paragraph (3) less than 351 pe~r hour, unless the hourly rate for the
same class of wvorkz on. July 15, 19219 was less than 35p per hour, in
which case, to pay not less than the hourly rate on Jully 15, 1929, and
in no ev-ent less than 25~ per hour. It is agreed that this paragraph
establishes a guaranteed minimum rate of pay, regardless of whether
the employee is compensated on the basis of a time rate or a piece-
ARTICLE IV-LABOR RELATIONS
(a) Employees in the industry shall have the right to or~ganize a7nd
bal~rgain rcollc~rt~ively t~hrough repnreseint~a~tives of t~hecir own choonsing
and shall be free from the inlterfere~nce, restraint, or coercion of eml-
ployers of labor, or their agents, in the designation of such~ representa.-
tives or in self-organization or in other concerted activities for the
purpose of collective bargaining or other mutual aid or protection.
(b) ~No employees, and nlo one seeking employment in, thie industry,
shall be required, as a condition of employTment, to join any company
union or to reframn from 301ming, orgamizmg, or assisting a labor
organization of his own choosing.
(c) Employers ini the industry shall comply with the mf ximumn
hours of labor, minimum rates of pay, and other conditions of emlploy-
ment approved or prescribed by the P~resident..
(d) It is the interpretation of the foregoing provisions that thle
employees in the industry shall be pJrotcrted from interference,
restra~int, or c-oerciion from their emlployerI and from any other peron,
in the determination of their rel t~ions with their employers, anid that
neither employers nor employees are required therebt~y to waive, surr-
re~nder, or impa~ir anyn of their const~itult~ionatl rights.
(e) It is the interpretation, of the foregoing paragraphs that. nothing
therein impairs the joint r~ighlt of employer and employee, to mutually
manintalin operatting conditions wheree anyT man who is competent
and whose services are desired will be emnployd regav~rdless of all
ARTICLE VS---OPEN PRICEl ]PouIct
The Joint Recovery Comlmitte~e of the fluorspar industry shall hanve
authority to establish and operate an open price policy.
A RTIC LE VI-A~DMII NISTRATION
(a) A Joint Recovery Commit tee has been, set up, which consists of
four representatives, two of whom have been chosen by producers in
Illinois, and tw~o b~y producers in Kentuc~ky. The! President, or any-
one with authority from him, mayv name two additional members of
the Committee, such members to have nro vote. but in all other re-
spect~s to be members of the Joint Recovery Committee.
(b) The two representatives of the producers in Illnois shall be
named by a majority vote of the Illinois producers and, in case of at
vacancy. a successor to either may be elected by a ~simiar vote. The
tw~o representatives of the producers in Kecnt~ucky shall be named by
a majority vote of thre K~ent~ucky producers and, in case of a vacancy,
a successor to either may be elected by a simlnarI~ vote.e on
(c) The right to vote for representatives rmIlni hl ecn
fined to thcose producers whlo have operations in Iliois, and who
shipped in the period from January 1, 1930, to June 30, 1933, not
less than 100 net tons in a single calendar year, or who had in. stock on
.June 30, 1933, not less than 100 net t~ons. The right to vote for repre-
sentatives from Kentucky shiall be confined to those producers wvho
hav-e operations in Kentucky and who shipped in the period from
January 1, 1930, to Julne 30, 1933, not less thann 100 net tons i~n a sinr-
gle calendar year, or who had in stock on June 30, 1933:, not less than
100 net. tons.
(d) Each producer entitled to vote mnay cast one vote, and, in
addition, as many votes as equal his total shipments for surch period
and his stock on June 30, 1933, divided by 500, ignoring any fraction;
provided, however, no producer who slipped during such period in
excess of 26,000 tons shall be entitled to :include such tonnage on
hand on June 30, 1933, inz determlining the amount of votes to be cast.
If any question is raised as to the right of any producer to vote or las
to the number of votes which may85 be cast, such producer shall file
a certificate with his vote, signed byT him, setting forth th2e number
of net tonzs shipped by him inl each calendar year in said period and
his stocks, as above defined. _Any false statement in such certificate
shall constitute a, violation of this code. Any producer may cast all
his votes for one representatives, or divide such v-otes between two
representatives in such proportions as he determlines. Any such elec-
tion may be evidenced by a writen instr~ument, signed by a majority
vote of the producers inL the pairticular state, d~etermined as above
'e') The Joint Recovery Commrittee shall have the powers listed
(1) To administer the. provisions of this code;
(2) To adopt. rules and regaulat~ions for the enforcement thereof;
(3) To entertain and hear complaints against any producer arising
out of alleged violation of thi code or of th~e National Industrial
(4) To initiate ~proceedings before the appropriate governentarl
agencies to prevent and/or punish violations of this code;
(5) To obtain from time to time from each producer reports in sueb
form and containing such information as t~he Joint Recovery Com-
mittee may prescribe, in order that the President may be kept in-
formed with respect to the observance or nonobservance of this code,
and ats regards the compliance by the industry with the policy and
provisions of the National Industrial R~ecover ~Act. To this end the
Joint Recovery Committee shall be empowered to a.ppoint a Confiden-
tial Agency, outside the industry, which Agency shall have access to
all places of business maintained by any producer, and may exammne
any pertinent records. Producers shall furnsh such statistics as are
requested by the Joint Recovery Committee for the purposes stated
(6) To prepare a uniform sales contracts for the use of producers.
The deletion or changing of any of the provisions thereof shall be an
unfair trade practice, and a violation of this code.
(7) To make such surveys, compile such reports ad marke such
reconurnendations as they mayg deema proper and for the best interests
of the industry andt the purchasers of its products.
(8) To require all producers to furnish a weekly certified report that
hre ha-s complied with the provisions of this code, together with a
4tatemlent of tonnage sold except captive tonnage, delivery date, and
a average price of eabch grade as classified by th is Committee, shi pmen ts,
orders, an~d stocks on. hand. Provided, however, that any producer
customarily producing and shipping any particular grade of fluorspar,
and who has complied with the provisions of this codek, shzall be entitled
to received from the Joint Recovery Committee copies of all informa~s-
tion collected by- the Commnittee pertaining to such grade. Any
failure of a producer to furnish the information or file the reports,
provided byT this paragraph, and by paragratph (5), shall be a violation
of this code.
(9) To consider proposals for amendments to this code, and to
submit such proposals t~o the proper Federal agency.
(10) The Joint Rtecovery Commnittee shall keep records of its meet-
inzgs, anld may employ the necessary assistants to collect, and dis-
tribute information and reports, and to perform anly of the duties
herein provided. Such Commttee mray act by a vote, of at least three
v-oting members, either at a meeting, or evidenced by a writt.en docu-
ment properly signed. Such Conulnittee may elect officers and adopt
rues for its own procedure.
ARTICLE VII-ADMINISTRATION ExPENSE
The cost of administration of this code shall be borne on a pro rata
basis by all produIcers of fluorspar, whe other they have expressly assented
to the provisions of this code or not. The amount of a~ssessmlent
from tie to time shall be established by the Joint Rec~overy Com-
mittee. It shall not, however, exceed a reasonable amount for the
purpose of collecting and dissemlinating the inform~ationl prov-ided in.
the preceding Article and in the perfrmance of its duties as specified
therein. In no event, however, shall the memnbeersof the Joitt
Recovery Committee be paid any compensation for their services,
bult they shall be3 entitled to be reimbursed any expenses incurred.
Any such assessment shall be distributed among the various producers
in the same proportions as their respective total sh~ipments for the
twele moths perod receding the month in which notice. of such
assesse Ilnt is" issud, an each producer, on request by the Commnittee,
shall fu rn ish a sta temlen t of his shipmen ts for such period; prov ided no-
assesment~ shall be levied on any producer wvho h~as shipped less than
500 net tons during said period. Failure to pay any- such assessment
w-ithinl twenty days after notice thereof shall be a, violation of the
code. At least oncec each six mnont~hs the Conmmittee shall account to
the producers for all money collected ad expended.
ARTICLE VIII-TRADE PRACTICE RULES
The following paragralphs (1) to (11), inclusive, are a statement of
unfair trade practices which are condemned. These, together with
other practices which may be declared unfair by the Joint Recoelry
Conunilttee, shall be deemed to be unfair methods of com~petitionz,
and the employment of any such practice shall be a violation of the
(1) Conscioulsly shipping a lower grade of mafteriall than as per-
mit~ted in thle contract or order.
(2) Cancelling in whole or in part, or pe~rmitting the cancetllation
of any contract for the sale of any product, except for a fair con-
siderat~ion, or paying or allowig to any- purchaser in connection with
the sale of any product, any rebate, commission, credit, discount,
adjustment, or siiar concession, or other than is permlitted by the
Code and specifically included in the contract of sale.
(3) Inducing or att~emlpting to induce the breach of a contract, oral
or written, between a comlpetit~or and his customer, or the solicitation
of business from, a customer with knowledge that nequiescence therein
by the customer would viola te a contract writh a competitor.
(4) The use of anyS corporate or other name which is not the
recognized name in whlich the producer openly operates in the dis-
trict in which, he is operating, or thne a attempt to sell fluorspatr from the
same operation under several different na~mes.
(5) To quote on. thre same inquiryS to the same, customer under
different names, or through more than one agent; or to quote on -the
samre inzquiry to the sam~e customer directly under any nlame, and
also thrugh an agent.
(6) Wh~ile there is in exriistence anl exclusive salles arrangement
between a producer and a sales agent, for such producer to sell
through any other agent without the consent of such exclusive
(7) Attacking a competitor by- makling false or misleading charges
as to his reputation, financial standing, or ability to serve the trade.
(8) To make any contract with anry purchraser w~hereby the purr-
chaser is to be protected against a decline in price, except so far as
such protection may be limited to prices qu~oted on, imported fluorspar.
(9) To sell, or attempt to sell, through .more than one agent,
except with the full knowledge of each agent..
(10) fa~king or promising to any purchaser or prospective pur-
chaser of any product, or to any officer, employee, agent, or repre-
sentative of any! such purchaser, any bribe, gratuity, gift, or other
payment or remluneration, directly or indirectly.
(11) Procuring, otherwse than with. the consent of any member of
the Code, any information concerning the business of such member,
which is properly regarded as a trade secret or as collfidential within
it.s organization, ot~her than relating to a violation of any provision of
ARTICLE IX---FOREIGN COMlPETITION
For the past fifteen years the importations of foreign fluo~rspar have
been gradually increasing, and for seven years have averaged more
than one thirdi of the total domestic, consumption. In certain grades,
t.he percent.ageP has recen1;tly been higher, and in o~ne, grade in 1932 the
importations amounted to 82%~ of the domestic consumption although
UNIVERSITY OF FLORIDA
3 1262 08582 8944
the dlomestic producers were able to supplyV all domestic requirements.
In this competition the domestic producers are compelled to compete
wit~h t~he c~hep.~ labor and long hours in vogue in Germlany, France,
Italy, Spain, South Africa, and China. Furthermore, in the principal
competing country, fluorspar is being sold for exportation to the
United States at lower prices than is charged for the same grade of
flunrspar for consumption in such, competing country.
About Alpril 1, 1933, representatives of the United States Tariff
Commission completed an exhaustive investigation of the cost of
production and conditions in~the Unit.ed States and in the principal
foreign. compIet~ing countries, and it is understood that the report, is
ready for submission to ther Tariff Commission.
In accordance with the provisions of Sect~ion 3 (e) of the National
Industrial Recovery Act, the producers request, that the President
cause an imlmediat~e invest~igation and report by t.h~e Tatriff C~ommlis-
sion, and that the President, take such~ action as he mnay be advised
under the provisions of said Sect~ion for the relief of the domestic
fluorspar industry; and that such action be taken, if possible, before
final action on this code.
(a) N~o provision in this code shall be interpreted in such a mla~nne
as to promote monopohies, permit or encourage unfair competition,
ehinunalte or oppress or discriminate against small enterprises.
(b) This code or any of its provisions mnay be cancelled or modified.
and any approved rule issued thlereunder shall be ineffective t~o the
extent necessary to conform to any action by the President, under
Section 10 (b) of the Nlationa~l Industr~ial REecovery Act.
(C) Violation on the part of any producer of anyT of the provisions
of ths code is an unfair mlethlod olf competition and shall constitute a
violation, of the code and be subject to all the penalties provided in
the `N t~ional Industrial Recovery Act.
(d) TCo the extent required or permitted by law anrd by the provi-
sions of the National Industrial Recovery Act, this code shall apply
to and be binding uponn every pmiroducer whether or not such producer
has actually agreed thereto. Nothing, however, shall require the
waiver by any producer of any constitutional right.
(e) This code shall be in effect beginning t.en days after its approval
by the President..