Registry No. 304--11
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
For sale by the Superintendent of Documents. Washington, D.C,. Price 5 cents
AS APPROVED ON NOVEMBER 8, 1938
GOVERNMENT PRINTING OFFICE
WASHINGTON r 1938
This publication is for sale by the Superintendent of Documents, Government
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CODE OF FAIR COMIPETITION FOR THIE LADDER RIANUFA~CTURINGI
An applict~ionn 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 my applrovanl of a Code of
Fair Competition for the Ladder M~anufacturing Industry, and hear-
ings having been held thereon and the Administrator having ren-
dered his report containing an analysis of the said code of fair com-
petition together with his recommendations and findings wlith respe~ct
thereto, and the Administrator having found that the said code of
fair competition complies in all respects with the pertinent. provisions
of title I of said act and that the requirements of clauses (1) and (2)
of subsection (a) of section 3 of the said act have been met:
NOW THEREFORE, I, Franklin D. Roosevelt, Pre~sident of the
United States, pursuant to the authority vested in me by title 'I of the
Nattional Industrial Recovery Act, approved June 16, 1933, and other-
wise, do approve the report and recommendations and adopt the
findings of the Administrator and do order that the said code of fair
competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
THE THITE HOUSE,
November 8, 1933.
Approval recommended :
Huan S. JoHNSON,
19900" -188--184 -8
CODE OF ~-FAIR COMPETITION FOR THE LADDER
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are submitted as a Code of
Fair Com petition for the Ladder Mianufacturinsr Industry, and upon
approval by the President shall be the standard of fair competition
for this industry.
The term "' industry as used herein is defined to mean the busi-
ness of manufacturing and selling by such manufacturers, of Indders
and ladder products In the United States.
The term member of the industry includes anyone engaged in
the industry, either as an emnployer or on his owPn behalf.
The term member of the C~ode includes any member of the
industry who shall signify assent to this Code.
The term "' employee as used herein includes any person engaged
in any phase of the industry in ainy capacity in the nature of em-
ployee irrespective of the method of payment of his compensation.
'1'hre term employer as used herein includes anyone for whose
benefit such an employee is so engaged.
The term institute means t~he American Ladder Institute, a
corporation organized under the laws of the State of Ohio, wvith
its principal office at Cleveland, Ohio, the membership in which is
composed of manufacturers of ladders and ladder products.
The term ladder products means scaffolding, hangers, trestles,
and other similar items used in conjunction with ladders.
The term The National Industrial Recovery Act or The
Act means the National Industrial Recovery Act as approved by
the President June 16, 1933.
The term the President means the President of the United
The term "'the Administrator as used herein means the Admin-
istrator appointed by the President under the Act and at the time
The term effective date as used herein means thle tenth day
after this Code shall have been approved by the President of the
The term "' Code Authority means the committee appointed to
administer this Code.
(A) No employee shall be permitted to work in excess of 40)
hours mn any one week or 8 hours in any 24-hour period provided,
however, that in peak periods of not more than 8 weeks duringg any
six months, hours may not exceed 48 in any one week, or 6 days per
week. In such cases, one and one third times the regular rate of
pay shall be paid for hours worked in excess of 8 hours per day.
(B) The maximum hours fixed in the foregoing section shall not.
apply to employees on emergency maintenance and emergency repair
work, who shall be paid one and one third times the regular rate for
hours worked in excess of 8 hours prdy o hl tapyt
executives and supervisors receiving $30, pe ekor morei andl out
side salesmen when not employed on productive labor.
(C) No employee shall bje permitted to work more than six days
in any seven-day period..
(D)) No employee shall be classified in any one of the exempted
classes her~einabove defined unless he performs functions identical
with tnhos peromed by employees thus classified on June 16, 1938.
(E) ach embe ofthe industry shall elect the date at which
the six months' periods begin, and shall inunediately inform the Code
Authority as to the election made. If any member of the industry
doles not notify t~he Code Authority within ten days of the effective
late of this Code, then, in that event, the first six months' period for
such members of the industry shall begin on the effective date of this
(F) No employee shall worki or be permitted to workr for a total
number of hours mn excess of t~he number of hours prescribed for each
week and day, whether employed by one or more employers.
(A) No employee, except as hereinafter provided, shall be paid at
less than the rate of 35 cents per hour.
()Office employees shall be paid not less than $15.00 per week.
()Equitable adjustment in all pay schedules of factory e~m-
ployees above the minimum shall be made not later than 30 days from
the effective date boy any employers wrho have not theretofore made
such adjustments, and he first monthly reports of wages required
to be filed with the Administrator under this Code shall contain all
waeincreases made since M1ay 1, 1933.
() This article establishes minimum rates of pay, regardless of
whether the employee is compensated on the basis of a time rate, piece
rate, or otherwise.
AnnoLP V--GENERAL LAnon PnovBIsoNs
(A) No person under 16 years of age shall be employed in this
industry, nor anyone under 18 years of age at operations or occupa-
tions hazardous In nature or detrimental to health.
(B) 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-organizatzon, or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(C) No employee and no one seeking employment shall be required
as a condition of such employment to loin any company union or to
refrain from joining, organlzing, or assisting a labor organization
of h~is own choosing.
~(D) 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.
(E) Wlithin each State this Code shall not supersede any' laws of
such State imposing more stringent requirements on employers regu-
lating the age of aempoyees, wages, hours of work, or health, fire or
general working conditions than under this Code.
(F) Each employer shall post in a conspicuous place in each shop
andl offce a copy of the labor and administrative provisions of this
Antrozz VI -ADMINISTRATION
To further effectuate the policies of the Act, a Code Authority is
hereby set up to cooperate with the Administrator in the administrat-
tion of the Code.
A. OROANIZATION ALND POWERS
(1) The Board of Trustees of the American Ladder Institute
together with such representatives as the President or Administrator
maydesgnae prsunt o pragr~aph (3) of this Section A is hereby
m designated as sucht Cod unthority ; provided, that no inequitable
restrictions upon membership in the American Lavdider Institute shall
at any time be imposed.
(2) With a view to keeping the Administrator informed as to
the observance or nonobservance of this Code and as to whether ap-
propriate steps are being taken to effectuate the purposes of the
Act, each member of the Industry shall furnish certified reports to
designated independent agents of the Code Authority when and in
such form as it shall, subject to the approval of the Admi~inist~rator
prescribe. If the Code Authority should have reason to believe thaC
any of the reports submitted are inaccurate, such reports may be
verified by examination of the relevant books and records of t~he
member of the Industry who has submitted such reports, by a dis-
interested and impartial agency designated by the Code Authority,
with the approval of the Administrator. Such agency must agree
to keep all inforrilation regarding individual manufacturers strictly
confidential, except that any violation of this Code shall be reported
in detail to the Code Authority and to the Administrator.
(3) The President or the Administrator may designate from one
to three representatives who shall thereupon become members of the
Code Authority with all the powers of members of such Code Au-
thority with the exception of the power to vote, and such repre-
sentative or representatives shall have access to all data and sta-
tistics collected by the Code Authority, and hereinbefore provided.
Such representatives shall serve without expense to the Industry,
and together with the Administrator shall be given notice of and
mav sit at all meetings of the Code Authority.
4) In addition to information required to be submitted under this
Co e, there shall be furnished to Government agencies such statistical
information as the Administrator may deem necessary for the pur-
poses recited in Section 8 (a) of the Act.
(5) Where the coists of executing contracts entered into in the
industry prior to the approval of this Code by the President are
increased by the application of the provisions thereof, it is equitable
and promotive of the purposes of the Act that appropraeajsmn
of such contracts to reflect such increased costs beae arrived at byusmn
arbitration or otherwiset and the Code Authority is constituted as an
agency to assist in effecting such adjustmentsl.
Each member of "the Code shall be entitled to participate in the
code activities of the Code Authority to the same extent as a member
of the American Ladder Institute. -Each member of the Code shall
contribute his proportionate share toward the cost of preparation and
administration of the Code, including the cost of the assembly and
analysis of such reports and data as may be required under the Code
and the cost of maintenance of the administrative agency and its
activitiese, either by becoming a member of the American Ladder
Institute or by paymg to the Institute amounts equal to such portion
of the dlues from time to time required of members of the Institute
in like situation as is used to defray the expense of administration
of the Code.
O. OLASSIFICATION OF CUS'193ERS
In order to provide for the orderly: distribution of ladders and
ladder products, the trade shall be divided into the following classi-
fications, based upon differences in cost and services rendered. The
customers falingithin each classification shall receive such trade
discounts from ltprices as shall be independently filed with the
Code Authority by the individual members of the industry.
(1) Consu~mer.-A8 consumer shall be defined as a buyer of ladders
or ladder products substantially all of which are purchased for his
own use and not for resale.
(2) Retatiler.--A retailer shall be defined as a buyer of ladders or
ladder products who buys to resell and whose business is designed for
and built upon the selling of goods to consumers.
The following classes of retailers may be distinguished from regu-
ai-re osslar retailers for the purpose of establishing prices and/or discounts:
Mailordr huse, cainstoesdepartment stores, cooperative as-
sociation of dealers and mill supply dealers.
(8) Jobber.--A jobber shall be defined as a buyer of ladders or
ladder products who buys to sell to retailers, and who carries a repre-
sentative stock of ladders, and whose salesmen operate in the ter-
ritory served by such jobber for the purpose of selling to retailers.
(4) On the basis of the foregoing definitions, the Code Authority
may prepare a list of jobbers for distribution to all known members
of the industry. Each member of the industry shall thereupon sub-
mit to the Code Authority for inclusion on such list the names of
customers whom he believes qualify as jobbers. The Code Au~thority
shall add to the list those names submitted which it finds qualified as
jobbers under paragraph (8) of this section C. Such final list of
Jobbrs hal bea pimafacie accurate and complete. list of such
persons as conform t h eiiino obri adprgah()
Buch list of jobbers shall be kept current by the Code Authority;
and each member of the industry shall continue to report the names
of any new customers whom he believes qualify as jobbers.
(5I) In the event that a question arises regarding the proper classi-
fleation of any customer or prospective customer, the decision of
the Code Authority, subject to review by the Administrator, shall
be prima facie correct.
(6) If the foregoing classifications of customers, or any applica-
tion thereof, should bear unjustly upon any individual customer or
member of the industry, such customer or member of the industry
may appeal to the Code Authority, subject to review by the Admin-
istrator, or direct to the Administrator which, after investigation,
may provide for such exemption or modification as justice and con-
vemlence may require. In the interim between such appeal and the
ruigof the Code Authority or Administrator, the classification
in eectat the time of such appeal shall continue in effect.
D. COBT AND PRICE-LI;sT PROHIBITIONS
No member of this industry shall sell or exchange any ladders or
ladder products at a price or upon such terms and conditions as will
result in the customer paying for such goods less than t~he delivered
cost to the seller as determined by a uniform cost accounting system
to be set up by the Code Authority, subject to the approval of the
Administrator, except as hereinafter provided.
The Code Authority shall promptly cause to be developed and
submitted to the Admmnistrator a uniform system of cost accounting
designed to make possible the accurate determination by each mem-
ber of the industry of his own individual cost.
Upon approval by the Administrator of such system of cost so-
counting, complete advice concerning it shall be distributed by the
Code Authority to all members of the industryg. Thereafter no me~m-
ber of the industry shall sell or exchange any ladders or ladder
products at a price below his own individual cost, except--
to meet a lower price previously quoted or posted by a competi-
tor. If such member, believing that such competitor is selling
in violation of the Section, has complained to the C'ode Au-
thority or to a properly authorized agency thereof, such mem-
ber may meet the price of such competitor as aforesaid, only
pending action upon such complaint.
In the interim between the effective date and the date the Code
Authority directs that the uniform cost-accounting system be placed
in use, no member of the industry shall sell his ladders or laddcer
products at a price less than his individual cost as determined by
such cost system or method of determination of costs as is being used
by him at the time the Code becomes effective, except as hereinbefore
Since it has been the general recognized practice of.iahe industry
to sell products on the basis of printed price lists with discount sheets
distributed to the trade, each member of the industry shall, within
ten days of the effective date of this Code, file with the Code Au-
thority price lists and discount sheets, showing his current prices .
and discounts to the various classes of customers as Ihereinbefore de-
fined. Revised price lists and discount sheets may be fied from time
to time thereafter with the Code Authority by any member of the
industry, to become effective upon a date specified by such member
of the industry, which date shall not be less than ten days after the
filing of such revised prices at the office of the Code Authority,
Copies of such revised prices, with notice of the effective date, shall
be immediately sent to all known members of the industrywho may
file, if they so desire, revisions of their price lists ando discount
sheets, which, if filed not less than five days previous to such effective
date, shall take effect upon the date when the revised price list or
discount sheet first filed shall go into effect.
No member of the industry shall sell or exchange any ladders or
laddr poducts at prices lower or discounts greater or on more
favoeraE~I*"'ble terms than the schedules of such member on file at the
office of the Code Authority as hereinbeford' provided.
The operation of the foregoing provisions shall at all times be
subject to the approval of the Administrator.
E. TRADE PRACTICES
The following shall be considered as unfair methods of competi-
tion in this industry:
(1) The defamation of competitors by imputing to them dishon-
oral conduct, inability to perform contracts, questionable credit
stan'ding2), or other misrepresentations.
(2) ntiing waytheemployees of competitors with the purpose
and effect of hampering, inJurmg, or embarrassing competitors in
their business. However, nothing herein contained shall prevent em-
plyes from seeking employment with other concerns.
(3) Any wilful attempt to induce a breach of any existing bona
fide contract or any wvilful attempt to prevent the performance of
any contractual duty under any bona fide contract for the purchase
or sale of ladders or ladder products.
(4) The entering into contracts for ladders or ladder products
with purchasers without actual obligation on the part of the pur-
chaser for a specified quantity or quality and/or merely for the pur-
pose of securing to the buyer a special price which in effect diserrun-
nattes between purchasers and tends to unreasonably restrain trade
and injure competitors.
(5) The delivery of ladders which do not reasonably conform
with the standard of samples submitted or representations made
prior to securing the order, unless with the consent of the purchaser
to a substitution prior to shipment.
(6) The entering into contracts which permit the buyer to cancel
or provide for a reduced price in the event of a market decline and
which do not permit the seller to cancel or provide for an enhanced
price in the event of a market rise.
(7) Wit~hholding from, or inserting in the invoice, anything which
makes the invoice a false record, wholly or in part of the transaction
represented on the face thereof.
(8) The payment or allowance of secret rebates, secret refunds,
.secret credits, unearned discounts, whether in the form of money or
otherwise; or the acceptance of securities at more than the true
market value as a means of effecting or concealing price discr~imina-
(9) False statements, written or oral, concerning competitor's
goods, or deceptive tests, or any act constituting a false statement
as to the prices a competitor is quoting.
(10) The giving or offering to give, directly or indirectly, w-ith-
out other consideration therefore, money or anything of value to
agents, employees, or representatives of customers or pr~ospective cus-
tomers, as an Inducement to cause them to purchase or to contendt for
the purchase of ladders or ladder products from the maker of such
gift or offer, or the selling or offeringa to sell other products at less
than cost as an inducement, to obtain the Iladder business of such
customers, or to influence them to refrain from dealings or contract-
ing to deal with competitors. No allowances or payments shall be
made to customers to cover advertising.
(11) The false marking or branding of ladders or ladder product
or any misrepresentation In connection with the advertising or sale
such items for the purpose of misleadingr purchasers.
(12) The making of false reports of capacity, production, costs,
sales, orders, or shipments.
(1) Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, with
t~he approval of the President, be modified or eliminated as changes
mn circumstances or experience may indicate. It is contemplated th~at
from time to time supplementaryI provisions to this Codle will be
submiitted for the approval of the President to prevent unfair com-
-petition in price and other unfair and destructive competitive prac-
tices and to effectuate the other purposes and policies of Title I of
the National Industrial Recovery Act consistent with t~he provisions
(2) The Administrator shall have thie right, on review, to dis-
"Pa'prove or modify any action taken b y the Code Authority.
(3 Violation by any member oif this industry of any pr~ovisions of
this Code is an unfair method of competition, and the offender shall
be subject to the penalties imposed by this Act.
(4) This Code and all the provisions thereof are exp~ressly made
subject to the rights of the President, in accordance with the provi-
sions of Subsection (b) of Section 10 of the National Indlustrial
Recovery Act, from time to time to cancel or miodify any border,
approval, license, rule, or regulation issued under Title I of saidl Act,
and specifically, but without limitations, to the right of the Presi-
dent to cancel or modify his approval of this Code or any conditions
imposed by him upon his approval thereof.
UNIVERSITY OF FLORIDA
3 1262 08582 8142