NATIONALLY RECOVERY ADMINISTRATION
sahington, B.C. ~-- -- Pieb e 5cet
Registry No. 121~1--01
1. Executive Order
2. Letter of Transmittal
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VERbNT' PRINTING OFFICE
WASHINGTON s 1988
!I~r~ass or r;Eoc~msnr~
CODE OF FAIR COMPETITION
IUJ~M AND LOW PRICED JEWELRY
M5.]:1ANU FAC TIRING INDUSTRY
l~j~:,:. A S APPROVED ON DECEMBER 23. 1933
This publication is for sale by the Superintendent of Documents, G~overnment:
Printing Offce, Washington, D.O., and by district ot~ees of the Burena of.
Foreign and Domestic Commerce.
DIS'IRICT' OFFICES OF THE DEPARTMENT OF COMMERHO
Atlanta, Ga.: 504 Post Offlee Building.
Birmingham, Ala.: 257 Federal Building.
,Boston, Mlass. : 1801 Customhouse.
If~utalo, N.Y.: Obhmber of Commerce Building,
I ;Chdrlelston, S.C.: thaIniber of Commerce Building.
Chieggo, Ill ': Suite 1706, 201 North Wells Street.
Clevelarid, ~Ohio: Chamber of Commerce.
Dallas, Tei.: C chamber of Commerce Building.
Detro~it, Miich.: 2213'First National Bank Building.
Houston, Tex.: Chamnber of Commeree Building.
Indianapolis,' Ind.,: Chamber of Commerce Building.
Jack~sqnville, FM.: Chamber of Commerce Building.
~I'urisut Cityi M~o.: 1028 B3altimore Avenue.
Los A~uthts, Calif.: 1163 South Broadway.
Louisville?, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
M~inneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New Yor~k, N.Y.: 734 Custombouse.
N~orfolk, Va.: 400 East Plume Street.
Philadlelphia, Pa.: 933 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Offce Building.
St. Louis, M~o.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 800 Federal Building.
SApproved Code No. 175
CODE OF FAIR COMPETITION
M~YEDIUIM AND LOW PRICED JEWELRY
As Approved on December 23, 1933
if An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code of
Fa~i~r Competition for the Medium and Low Priced Jewelry Manu-
fl~acturing IndustryI and hearings having been held thereon and the
:. Administrator having rendered his report containing an analysis of
the said Code of Fair Competition together with his recommenda-
t ions and findings with respect thereto, and the Administrator having
~fox~ind that the said Code of Fair Competition complies in all respects
.;withz the pertinent provisions of Title I of said Act and that the
re'';i-quiremlents of clauses (1) and (2) of subsection (a) of Section 3
of the said Act have been met.
hi-:NO'W THEREF`ORE, I, Franklin D. Roosevelt, President of the
U~nit~ed States, pursuant to the authority vested in me by Title I: of
Sthe National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations and
findings of the Administrator and do order that the said Code of
Fair Competition be and is hereby approved, subject to the following
That the application of the provision of sub-section (b), Section 1,
Article III, which provides for the payment of time and one third
for all hours worked by any employee in excess of forty (40) per
week, shall be stayed until March 1, 1934, at which time such provi-
sion shall become effective and have the same force and effect as any
other provision of the Code.
FiRANKLIN D. ROOSEVELT.
Henc S. Joansox,
Tax WarrE HornsE
December 3, 1.933.
DECEKBER li, 1933.
i Th~e 'WhTite House.
Sma: A_ Public H~earing on the Code of Fair Competition for the
Medium and Low Priced Jewelry Manufacturing Industry, sub-
,~mitted by the Council of Jewelry and Allied Industries, was con-
i:. dixted in Washington on the 10th and 11th of October 1933, in
el' ;ic~ ~~eord~ance with the provisions of the National Industrial Recovery
ctThis Association claims to represent sixty percent (60%0) of
TUpon petition of the Industry, and advice of the Labor Advisory
Board, a provision has been included in the Executive Order stay-
lli ing the application of subsection (b) of Section 1 of Article IIIr,
Pohich provides for the payment of time and one third for all hours
worked by any employee in excess of 40 hours per week, for the
II; period between the effective date of this Code and Mlarch 1, 1934, in
order, to allow them to take care of goods contracted for for this
TShe maximum hours permitted under this Code are forty (40)
per week for factory, mechanical workers, or artisans, with a twenty
percent (20%0) tolerance in seasonal periods. Toolmakers, hub and
die cutters may be employed a, maximum of forty-eight (48) hours
per week, but this type of employee shall not exceed five percent
(5%~~I) of the total number of employees. Provision for the pay-
mennt of overtime is made. All ot her employees, exclusive of ship-
-Yojand packing crews, shall not be employed for more than forty
hours per week. Shipping and packing crews may be worked
,orty-four (44) hours per week, but must be paid time and one third
forF all hours in excess of forty (40) per week.
The minimum wage is thirty-two and a half cents (321%4) per
hour. Provision is made for learners being paid eighty percent
(C80%b) of the minimum wage, but this class shall not exceed ten
Eli : percent (10%) of the total number of regular employees. Aged
;employees to the extent of two percent (2%) may be employed and
shallbe paid ten dollars ($10.00) per week.
The Medium and Low Priced Jewelry group includes the manu-
f -factlirersl of jewelry of less than ten. Karat (10 Kt.) fineness and a
variety of inexpensive jewelry and other articles, such as cigarette
cases, vanity cases, bags, and novelties made of base metals. The
principal outlets for the products of this Industry are the 5-and-l10
i cent stores, variety stores and department stores.
The nuriter of concerns engaged in this Industry declined from
1,100 in 1929 to 650 for 1933 or about 41%. Of the 650 concerns,
80%0 are located in Massachusetts and Rhode Island.
Employment in 1932 was approximately 60%b of the 1929 leveL.
Data for September 1933 ~indicates more persons employed than
the average for any year since 1929. This increase is due both to
the recovery program and to the stimulation of the seasonal peakl
period. Reports from 62 representative firs indicate a 36.8 percent;
mecrease mn employment over early 1933 levels.
In contrast to the rate of decline in employment, the rate of de-
cline in pay rolPls was greater from 1930 to 1931 than from 1929
to 1930. Thscomparison indicates that from 1929 through 1931
wages were being reduced more rapidly than employment. From
1931 to 1932 the wage reduction approximated the decline in em- ,
ployment. The 62 representative firms, which reported the 30.8 per-
cent increase in employment, estimate a twenty-five percent (25%) ::
increase in pay rolls for the same period, that is in the latter part :i3
of 1933 over the early part. It is eviden t from figures submitted that in
an increasing share of the value of product was allotted to labor j
during the years of depressed business, so that reduction in wage il
rates were necessary.
The Administrator finds that:
(a) The Code, as recommended, complies in all respects with the
pertinent provisions of Title I of the Act, including, without limi-
tation, subsection (a) of Section 7, and subsection (b) of Section
10 thereof ; and that
(b) The Council of Jewelry and Allied Industries, the applicant
group herein, imposes no inequitable restrictions on admission to
membership and is truly representative of the Medium and Low
Priced Jewelry M~anufacturing I~ndustry.
(c) The Code as recommended is not designed to promote me- I
nopolies or to eliminate or oppress small enterprises and will not :
operate to discriminate against them, and will tend to effectuate the
policy of Title I of the National Industrial Recovery Act.
This Industry has cooperated in a most satisfactory manner with
the Administration in the preparation of this Code. F~irom evidence
adduced during this hearing and from recommendations and reports
of the various Advisory Boards it is beieved that this Code as now
proposed and revised represents an effective, practical e~quitable
solution for this Industry and its approval as herewith subnutted is
Huoan 8. JoHnwow,
CODE OF FAIR COMPETITION
I)IUE~TC M AND LOW PRICED JEWELRY MANUFACTURING)
A.RTICLE I DITRPOSES
To,,~ ~~l:.feffectuate the policies of Title I. of the National Industriall
~geco~ery Act, the following provisions are submitted as a Code of
Fasir Competition for the M/edium and Low Priced Jewelry Mlanu-
factdiring Industry, and upon approval by the President shall be the
stra~ndard of fair competition for such industry and shall be binding
I~on' every member thereof.
C ARTICLE II DEFINITIONS
1l: The term "C Jewelry as used herein, means jewelry commonly
or commercially so known and articles of adornment, designed to
efj worn on apparel or carried or worn on or about the person.
S2. The term Medium and Low Priced Jewelry Manufacturing
.Industry ", as used herein, means the manufacture and sale or dis-
trib~ution by the manufacturer of jewelry made from base meals,
rolled plated precious metals, solid silver, plastic, and casein ma-
terials, and of gold of a fineness less than ten karat (10 Kt.h), and
subject to such limitation and description includes--
(a)It The manufacture of the following products:
()Insignia jewelry and medals for schools, colleges, fraterni-
i' ties, and other' educational institutions or divisions thereof.
2 Fraternal and emblematic jewelry.
3) Buckles and ornaments for millinery, dresses, bags, and shoes.
9iI 4) Watch bracelets and attachments.
5) Religious articles of a jewelry nature.
6~ Collar buttons.
? Men's jewelry.
i68 Mesh bags and mesh products.
-9 Cigarette cases, vanity cases, and compacts (except those for
nationally advertised cosmetic brands).
(10) Medium and low-priced jewelry of all types not specifically
mentioned in the foregoing.
(b) Manufacturers, wholesale dealers, and/or assemblers of:
S1) Chatons, marcasites, imitation pearls, imitation pearl beads,
asirmtation precious and semiprecious stoems.
()Jewelry, beads, bead necklaces, and bead jewelry.
()Processors (commonly known as job-shops) serving the manu-
facturers of Medium and Low-Priced Jewelry,,including bobbers,
bi.. utfers, polishers, players, engine turners, engravers, stonesetters, tool-
makers, hub and die cutters, lacquerers, enamelers, refinefrs of scag:i
and all other employers, the majoor part of whose work is for tins;
3. The Medium and Low Priced Jewelry Manufacturing Industry
includes the following subdivisions. (a) Flat stock, sheet, wire, and
tubing; (b) Raw chamn; and (e) Metal findings.
4. The term "Lemployee "' as used herein includes anyone employed
in the industry in any capacity receiving compensation for his serv-
ices, irrespective of the nature or method of payment of such cojm-
5. The term "L employer as used herein includes anyone by whom
any such employee is compensated or employed.
6. The term factory or mechanical worker or artisan as used
herein includes all workers and assemblers engaged in the preoes of
7. The term shipping and packing crew as used herein incindes I
those employees who perform no productive or mechanical operations ,
of any kind; who wrap, package, card, or box the products of this
industry and apply the same to customers' orders and ship the same.
8. The term "L wholesale dealer as used herein means any person
who manufactures and sells, imports, assembles, or contracts for the
manufacture of medium and low priced costume jewelry, and such
other products of this industry as come within the definition of this
Code, and sells such products to the wholesale and/or retail dealer.
ARrlCLE III -HOURS8
1L. No employer shall employ any factory or mechanical worker
or artisan in excess of forty (40) hours in any one week, except in
seasonal periods, a twenty percent (200%) tolerance shall be allowed
on the basic working schedule.
(a) Toolmlakers, hub and die cutters may be employed a maximum :
of fortyV-eigaht (48) hours per week, but they shall not exceed five
percent (5%c) of the total number of employees employed in any one
calendar month; and provided, that any employer may employ at
least one toolmaker or hub and die cutter on this basis. In the event
that the factory of any person is operated in more than one shift, no i
employee of this classification shall work more than forty (40) hours ;!
in any one week. ~i
(b) Time and one third shall be paid for all hours worked by any
employee in excess of forty (40) hours per week.
2. Employees (other than factory, mechanical workers, or artci-
sans) may not be employed in any manner for more than forty (40)
hours in any one week; provided, however, that in the case of ship-
ping and packing crews, a tolerance of ten percent (10%r) is per- .
mitted; provided further, that such shipping and packing crews
shall be paid time and one third for all hours worked in excess of
forty (40) in any one week.
3. In the event of unusual emergencies requiring an extension of
hours, members of the industry through the Code Authority~ may
request permission from the Administrator for an extension of hours4
beyond those provided for in Sections 1 and 2 of this Article, with
such provisions for overtime as the Administgator may' presciribe~.; 1
in productive work, shall conform to the working hours
be..abokve provisions for maximum hours do not apply to em-
engaged in a managerial, executive, or supervisory capacity
~ece~eeeeeeeeiv:e thirty-five dollars ($35.00) per week or more, nor to
a salesmen, when not engaged in productive labor.
~he. maximum hours fixed in Section 1 shall not apply to any
yes on emergency repair workr involving breaki-downs or pro-
p of life or property, but in any such special case at least one
igh thirUlid times the normal rate of pay shall be paid for all hours
in excess of the maximum of forty (40) hours herein
Paitchmen may be employed in pairs and shall work thirty-six
~and forty-eight (48) hours on alternate weeks, or not more
forty-two (42) hours per week averaged over any period of two
in rrexcess of the number of hours herein prescribed, whether he
mploya~ed by one or more employers.
~AZCrCLE riV A~TGES
Noi~ii employee shall be paid at less than the rate of thirty-two
on~~se half cents (39%#2) per hour.
Li~ earliers, who are persons having had no previous experience or
~~ E~~jii~etl ini this industry, shall be paid not less than eighty per-
cent80%)of the minimum hourly rate of thirty-two and one half
tiihts 3~2j#) per hour; such period of learning not to exceed six (6)
jkd~ks;. and th~e number of learners employed by any one employer in
on~~Fie month shall not exceed ten percent (10%) of the total num-
of ~employees of such employer; provided that every employer
~lj;be entitled to employ at least one learner.
)~ ~Whierre, because. of infirmities due to age or other causes, it
(BE j*' houirly rates herein provided, the Code Authority may,
~e~tition of' an employger, and with the aLpproval~ of the Admin-
pertmit such emaployee; to. continue. in employment, provided,
a~ wage~Is paid to suc~h employee shall be not less than ten
$10.00~O ) per week; .eyad.provided further, that they shall be
the.. same .rate per piece as other workers such employees
1it any cas~ -exceed, two percent (2%o) ~of the total number
a gularly employed Thnis provision shall apply only
im the employ of the member of the industry, so desiring
HIt it rn~atto, who were. so~ emilioyed prior to the passage of the
ass~~foinaEl' Industrial Rdecovery A~u
Th:'"""ie; Arcle 'esatabl~;ish~~es' a kriininiumi rate of pay, regardless of
Rfther a~n emploEe is: edmpernsated on a time-rate, piecework, or
& 'It 'is the policy of the inerabers9 of this industry to refran from
eig he om~ipensh~;~:~ ih for ~enf~ployment which: compensation was
rso inrel~aut e oner p ULL VI 11H1Uft t:llL 15 CAUC U.L~l~~L 1 LhHU JUMMBERMAU~ Eq
as herein set forth, by an equtal adjustment of all pay skeul
4. Female employees performing substantially the same~ work is~
male employees shall receive the same rates of pay. ..
ArrlCLE V- aENERAL LaBOR PEOVIBIONs "
1. No person under sixteen (16) years of age shall be employe~i
the industry; nor anyone under eighteen (18) years of age at operA-fil
tions or occupations hazardous in nature or detrimental to hea~2ldi;'i
The Code Authority sha'l~submit to the Administrator a ist of swerillj
occupations. In any State an employer shall be deemed to 'have
complied with this provision if he shall have on file a certificeite or
permit duly issued by the authority in sulchi State empowered to aide~l:irl
employment or age certificates or permits, showing that the employepri
is of the required age. :
2. Employees shaUl have the right to organize and bargain co~l~;:i
lectively through representatives of their own choosing, aiid aig is
be free from the interference, restraint, or coercion of employers 6f
labor or their agents, in the designation of such representatives or ;:
in self-organization or in other concerted activities for the purpose :~
of collective bargaining or other mutual aid or protection. Il
3. No employee and no one seeking employment shall be requii~edl~
as a condition of employment to jon ~any company union or to e
frain from joining, organizing, or assisting a labor organization~~' of1
his own choosing, and 1
4. Eimployers shall comp~lyr with'2 the maximurm hourrs o I~i~;;ld
minimum rates of pay, and other conditions of employment, approveP
or prescribed by the President.
5. Within each State this Code shall not stipersede any larys of
such State imposing more stringent requirements on .e~mprloypgi ~
regulating the age of employees, wages, hours of viorkr, or gnt*a
working conditions than under this Code.
6. Employers shall not reclassify employees or duties of
tions performed by employees so as to defeat the pugosbs of t~e'
7. Each employer shall post and keep posted iri conspicuoth p~
copies of the wage and hour provisions of the Code.
ARICLE VI- I 3OME WORK:
1. Employers in this industry shall not directly or indirectlyl
nut work of any kind to be done in the home or homes.
To further effectuate the policies of the Act, a Code~ Aut
hereby established to cooperate with the Administrator,
adrifinlstration of this Code.
1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of the Copincil of
and Allied Industries and one member .of the Precious
Producing Industry*. *
(It In aid~dit~ion to membership as above provided there may be
rW mre than: three (3) members, without vote and without compen-
ea~tion fhcrom the Industry, to be appointed by the Administrator, to
leavefo such time as he may designate.
(c)- E'ach trade or industrial association directly ridrcl
patcpaigin the selection or activities of the Codoe Authorityinircl
halsu~bmit to the Administrator true copies of its articles of asso-
Sinbylaws, regulations, and any amendments when made thereto,
hrwith such other information as to membership, organization,
Id activ-ities, as the Administrator may dleem necessary to eff~ectuate
he~ii purposes of the Act.
(~-q-d) In order that the Code Authority shall at all times be truly
repesnttive of the Industry and in other respects comply with
the provisionss of the Act, the Administrator may provide such hear-
ji'g as he may deem proper; and, if he shall find that the Codle
utiority is not truly representative or does not in other respects
clomply with the provisions of the Act, he may take such action as
he nI~iecessary under the circumstances.
2~~ The Code Authority shall have the following duties and powers
:ie extent permitted by the Act, subject to the right of the Admin-
ron review to disapprove any action taken by the Code
}E.;.C1) Sic agency may from time to time present to the Adlminis-
fatter; for his approval recommendations, based on conditions in the
i~ltsdus as they may develop, which tend to effectuate the policy of
thb.ii Nac~i' tonal In~dustral Recovery Act, and it shall be the duty of the
Mod~~je A~uthority, when experience under the code may require, to
smkejara such specific recommendations with reference to statistical
ieportag* keepmng of uniform accounts; as to methods and conditions
at trading; regulations for disposal of distress merchandise; and
Ac'i~ h further recommendations for dealing with any other inequali-
~teies that may arise to endanger the stability of the industry and/or
p~.~iroduction or employment, and as may appear necessary or expe-
atei~int to elfectuate the purposes of Title I of the National I~ndustrial
8i. Thie Code Authority shall cooperate with the Administrator in
nekha~4ij- investigations as to the functioning and observance or non-
abP~lidfaLn ce of any of the provisions of this code, at its own instance
VEn:2:ta complaint by any person affected, and to report the same to
4i TCo obtain from members of the industry such information and
r:;~Leport as are required for the administration of the Code and to
prvde~~tj for submission by members of such information and reports
as itM~ Administrator may deem necessary for the purposes recited in
Setni 8 (s) of the Act, which information and reports shall be
ii ''iitabmjtited 'by membted t~o such administrative and/or government
agena~stes acs.the Administrator may designate; provided that nothing
;i t't!Code~ sihal relieve any~~t member of the industry of any existing
Ei'ii ;blrigation to; fixrnish rezoirts to any government agency. No indi-
''f~idner to~ports shall be disclosed to any other member of the in-
'dustry~ or: any other~p~art~y except to such governmental agencies as
may e ~~ediretdb ther Adm~imstra~tor.
r"iEi Nomq ntberestrictions on admission to membership in the
Council of Jewelry and Allied Industries, or any other trade asso-
organized group upon compliance with the provisions ort m~te~ Qyla
relating to membership, provided that any person applying for a
membership shall, in addition to the payment of such dues as~ ass
imposed and paid by all other members, accept a reasonabe sa
equitable share of the cost of code development and admin~isitra;t~ion)~:
Such members of the industry who do not choose to becomeme
bers of any trade association or organized group may participate 1~
in the activities of the Code Authority as herein provided by pay~
ing to the Code Authority such proportionate part of the cost ofI
code development and administration as the Code Authority, subjectr
to the Administrator's approval, shall prescribe as fair and equi~table
AnnousE VIII 'TRADE PRACnOEB
The following practices constitute unfair methods of competition
for members of the industry and are prohibited:
(a) To give, permit to be given, or directly offer to give, anygthing
of value for the purpose of influencing or rewarding the action of any
employee, agent, or representative of another in relation to the bush-
ness of the employer of such employee, the principal of such agent'
or the represented party, without the knowledge of such em loy~er,
principal, or party. Commercial bribery provisions shall not be cron-
strued to prohibit free and general distribution of articles com~monlye
used for advertising except so far as such articles are actually used
for commercial bribery as hereinbefore defined.
(b) Securing confidential information, other than information.,
pertaining to a violation of any provision of this Code, concerning::i
the business of a competitor by a false or misleading statement or -:
representation, by a, false impersonation of one in authority, by'
bribery, or by any other unfair method.
(c) To use or to substitute any material differing in quality, d~I
sign, weight, or construction from that specified by the purchas~ier~
or representations made by the manufacturer prior to securing thel
order without the consent of the purchaser to such substitutions,
(d) The defamation of competitors by falsely imputing to themi~
dishonorable conduct, inability to perform contracts, questionyrbiile
credit standing, or by other false representations or by the f'a~ilso
disp aragement of the grade or quality of their goods.
(e) Maliciously inducing or attempting to induce the breach a
an existing oral or written contract Intween a competitor and
customer or source of supply, or interfering with or obstructing
performance of any such contractual duties or services.
(f) To aid or a et any person, fr association, or corporal
in any unfair practice established in this CoLe.
(g) The secret payment or allowance of rebates, refunds, c
siops, credits, or unearned discounts, whether in the form. of mn
or otherwise; or the extensions secret or otherwise, to certain
chasers of special services or privileges not extended to all p
of the same class on like terms and conditions. 1;
1. euatom~ers' advertising, unless the employer's name, trade name or
di~rgdmak clearly and distinctly appears in such advertising at
nmle.: conspicuous place.
(h) To grant quantity prices or quantity discounts for orders
,,Eicrn. qantity than those for which the said prices or discounts are
1.To delay shipments of orders for which quantity prices or
qntityg discounts are granted beyond the time necessary to make
.*eiery except in cases where a single future shipment of an entire
ordf~er is agreed upon.
S().To withhold from or to insert in any invoice, statements which
asethe invoice a false record, wholly or in part, of the transaction
rtdon the face thereof.
,IIi~) To make repairs or to refinish any products of the industry
mitho a fair charge there-for, unless defective in material or manu-
(h",.I). To stamp, brrand, mark, or invoice with any word, symbol,
saror quality mark any article of merchandise in violation of
rFe~'ideral or State Stamping laws (or any commercial standards cov-
erming such articles issued by the United States Department of Com-
:Il~'iLace re governing the stamping and marking of gold, gold filed,
~l':;!le: i~d gold plate, gold plate, gold electro-plate, and other gold-
cov~i;i~~ ered articles, or articles of other precious metals.
(1) To grant trade discounts in any form except as provided in
,ii .(m) To deliver (except to buyers and district offices of chain
sli;;'tores with a retail selling limit of $1.00 or less and except samples
oIIi;~..f findings for catalogue use, which shall remain the property of the
pliii,' ~~ reducer, and except fraternal emblem pins and buttons) sample
[lij:' jnes of complete or partially complete articles to distributors, unless
sh:::j':rEarged for at the regular prices and on regular terms of sale and
*Li; (a- To imitate or simulate the mark or brand of a member of the
~industry, without permission of the owner.
} ;)To imitate or simulate any original design without the per<-
ni,;ideio:;i~ain of the originator. "L Design is defined as follows:
IC:;AfI" designs is a pattern applied to, or a shape or form of a manu-
asture~sd product which is not of itself a work of Brt, and shall in-
Ie'i':i8:nd~e dies, molds, or devices by which such a pattern, shape, ori
formn may be produced, original in its application to or em'bodi-
j:':jasent .in sinch mranufactured product by reason of an artistic orl
feda;':~ltliectual effort, and which produces an artistic or ornamental!
stenti~i I'" 9~kor rdecorattion, but shall not include patterns or shapes or
forms which have' merely a functional or mechanical purpose. Regu-
lii Int'~ijonsi for the administration of the above provisions shall be set.
up ~Ein acor:dance with A~rt~icle VII of this Code."
proi No~ persowns governed by this Code shall either directly or
ad~i'l'ikeebtli$Oy 'loan, consign, place on memo, or otherwise deliver any
: j's;Baerthandis into hthe control osr enstody of any person for the pur-
.~irzi~~'~B a~~:samre. in anyv distributor's stock without transferring
(r) A note settlement or trade, acceptance even if ~eabeeted
or prior to the discount date shall not he considerd as Ba:iSi
(s) eNo.~ merchandiseexcep samples of findings, shall be
livered as samples, except upon condition that same shall ~bea::j
turned or charged within fiteen (15) days following reJeipt. Tis
provision shall not apply to merchandise delivered to catailoge~jii r
houses or to buyers and district othees of chain stores having ai
retail selling limit of $1.00 or less; provided, however, that all sjtmlh
merchandise shaUl be returned or charged within sixty (60) daslr
following delivery. ;
(t) No article of jewelry or findings,, finished or uni~nished, wI
filled in accordance with customers' orders and sold by any perison.,
shall be accepted for credit, exchanged, or in any other way reiiturne
by a, purchaser unless such article is defective in material or many~i
facture, and then within five (5) days of receipt of goods, prov~ided'
this shall not apply to settlements made with any insolvel ~it or:
(u) Synthetic, reconstructed, doublet, or imitation stones, cultured.
and imitation pearls, sold either loose or mounted, shall be designateda: i*'
as such on invoices, tags, or other descriptive medium.
(v) Nothing in this Code shall limit t~he effect of any9 adjudiention;:
by the Courts or holding by the Federal Trade Commission on comr-"'I
plaint, finding, and orderly that any practice or method is unfa~iit,!;
providing that such adjudication or holding is not inconsistent, ~idthj
any provision of the A8ct or this Code.
A~nnow IX---8Amas PROVISIO2W8ii
1. No member of the Industry shall sell, exchange, or o~fer f~oV~
sale any product of this Industry at a price below his own individual~
cota determined by an adequate cost-finding system, capable-o
uniform application to the Industry and approved by the Ardinwo~r:
trator, provided, however, that any member of the Industry may~b!;;
meet competition in any specific instance by selling his product
a price not less than the lowest price of a comparable article o~n
with the Code Authority and provided further that:
(a) "L Discontinued merchandise, which is not deliberatelyma
factured or acquired in such a manner as to frustrate the spirit s
intent of this section, may be sold at less than cost 4 provided, tha
such sales shall be reported to the Code Authority not la~ter ~thani
thirty (30) days thereafter.
1. Effective as of Janusr 1, 1934, the maximum eashdior
shall be three percent (3~0/ for payment on or before the
(10th) day of the month following the date of invoice.
2. The maximum credit period shall not exceed ninety (980) e
8. A tolerance of thirty (80) days may be allowed tao w
AnticLE ~XI--ACE LISTS
12:;t IEa~ch member of the industry shall, on request of the Code Au-
tfhorit, ten days prior to the effective date of his price list, file his net
il. current price hists and/or price lists with discount sheets, as the case
ll";i-may be, with the Code Authority.
2. Revised price lists, except in case of increases of each and
evell;~Fry item, with discounts thereon, shall be filed witb C*he Code Au-
a;: tho~trity ten (10) days prior to the effective date.
AnaI~Lou XII-CHANGES AND) ADDITIONS
i In order to enable the industry to conduct its operations subject
o1 -the provisions of this Code, to establish their trade within thle
la:dustry and with those dealing with the industry, and otherwise to
e!!!!~ fectuate the purposes of Title I of the National Industrial Recovery
Act, supplementary provisions or amendments of the Code, or addi-
tional Codes, may be submitted from time to time for the -approval
oi::'.lf the President b~y the Code Authority, or by any of the divisional
Ii groups, through the Code Authority. Such supplementary provi-
exons or amendments, when approved, shall have the same force and
efect as the major code upon the group or groups from which they
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
vii,:'isions of subsection (b) of Section 10 of Title I of the .National
In industrial Recovery Act, from time to time to cancel or modify any
.order, approval, license, rule, or regulation issued under Title I of
sj : aid Act and specifically, but without limitation, to the right of the
li:iPresident to cancel or modify his approval of this Code or any con-
d::iition~s imposed by him upon his approval thereof.
1 2... This Code, except as to provisions required by the Act, may be
odtified or amended .on the basis of experience or changes in cir-
cunotances-, such modifications or amendments to be based upon ap-
liqu.. 'S;t8ion to the Administrator and such notice and hearing as h
.e lhal~pl specify, and to.become effective upon approval of the President,
un~l~ess otherwise provided.
ALETICLE IUV-MONOPOI;EsI, ETC.
1~. ~No provision ofE this Code shall be so applied as to permit
ili monopoliess or monopolistic practices, or to eliminate, oppress, or
discriminate against small enterprises.
AnriB~Cra XV--PRICE INGREAsES
1.F*' hi;~ jereas the policy of the Act to increase real purchasing
porwer~z 'irm be. made impossible of consummation if prices of goods
as d~i:services~ increase. as rapidly as wages, it is recognized that
prac ancreases should be delayed and that, when made, the same
sh.Zould, so far as reasonably possible, be limited to actual increasesaa~~~~~aaaaa~~~~
in the seller's costs.
sive) are supplementary to, and constitute part of, 'the Clode of'il
Competition for the Mediuim and. Low Priced Jewel-ry Manufa~ckwhi~
Industry. Such schedules apply only in those partienlar divishe
of the Jewelry~ Industry indicted by' the specific heading ea~
where such provisions confflct with the provisions of the base i'ep(
the provisions of the schedule, as to the particular division movehe~
thereby, shall control.
Approved Code No. 175.
Registry No. 1215-1-01
~;i : ~iC
*;rt : ?:l::s~
s ... .;.
Dzruston rOB THE MHfAUFACTUREBB- AIND DISTRB~lRTORS OF JEWELRY FOR SCHOOLS,
E"iii. OOLLECGES, FRATERNITIEB, AND OTHEB EDUOAITIONAL INST1TUTIONS
(a) In order to meet the increased cost of gold following the Executive
Order of the President of August 28, 1983, it is recognized that prices in con-
tracts for purchase of gold products, which were made prior to said Executive
ai Order and are in full force and effect between members of this Division and
their customers, should be increased to such an extent as is necessary to allow
for the actual increased cost of gold in such products.
(b) No member of this Division shall induce or attempt to induce the breach
C! of a bona fide existing contract between a competitor and the customer of such
competitor during the term covered by such contract, or interfere with or
l~i obstruct the performance of any duty or service provided by the terms thereof.
(e) Whbere a fraternity controls the manufacture and distribution of its
insignia under contract, it is an unfair trade practice for unauthorized persons
L-) to manufacture, solicit, or accept orders for such insignia.
(a) Discounts on all orders sold direct from any manufacturer of this Didl-
saion to retail stores, where no salesman works on such order, shall be uniform
as to purchasers of the same class, grade, quality, and,'or quantity and at such
'amount off of the list price filed with the Code Authority, as may, with the
!lt approval of the Administrator, be determined by such Code Authority.
(b) Discounts on all orders placed through local dealers by salesmuen shall
be uniform as to purchasers of the same class, grade, quality, aind./or quantity
and at such amount oil of the list price filed with the Code Authority, as nIy1~,
wvith the approval of the Administrator, be determined by such Code Authority.
(e) Cash and trade discounts, other than provided for in sections (a) and
(b) of this Article, are hereby prohibited.
(a) Deposits on the purchase price of class emnblems and fraternity jewelry
shall be required with the order, as follows:
(2) On each lass emblem order, not less than three dollars ($3.00) deposit
where the retail selling price exceeds ten dollars ($10.00).
L Provided, however, that no deposit shall be forfeited except for arbitrary
eI: cnacellation or rejection of the order, or any part thereof.
(8) Nlot less than ten percent (10%), and in no case less than one dollar
($1~.00) deposit on all regular orders for fraternity jewelry at least fifty percent
(50C) iof the purchase price thereof.
4. SPECIAL CHARGES unD COMMITBBIONB
(a) On all. orders for high-sehool rings and pins the actual cost of the neces-
sary dies shall be charged in accordance with a schedule submitted by the Code
Authority and approved by the Administrator.
(b) Commissions in any form allowed or paid to any salesman representing
a member of this Division shall be filed with the Code Authority in the same
manner as provided for the filing of net current price lists and discount sheets,
and no salesman shall give to a purchaser any deduction from his commission
li' as abown by the schedule thereof filed with the Code Authority.
B. BAI.EB PEovIBIONB
(a) No member of this Division shall sell, exchange, or offer for agig;
product of this Division at a price below his own individual cost, as det~eriad
by an adequate cost-finding system, capable of uniform application: to the ~igli
dustry, to be developed and set up by the Code Authority, subsequent to iii
effective date of this Code, and when approved by the Administrator, shraB
used by all members of this Division as the basis for determining tti l
individual cost "1 r
6. PRICE WBI.TB*
(a) Each member of tbla Division shall, within five (5) days after the efa!i'
fective date of this Code, file with the Code Authority a schedule of his seti
current price lists and discount sheets on forms prescribed by the Code Atl~i
thority and approved by the Administrator.
(b) Revised sebedules of price lists and discount sheets may be filed froadi~~
time to time thereafter with the Code Authority by any member of this Dt-~i
vision, to become effective upon the date specified by sueb member, whcltidh
date shall be not less than ten (10) days after the fiing of such revisledij
schedules with the Code Authority.
(c) No member of this Division shall sell, exchange, or offer for sale any~;I
product of this Division at a price less than set forth in the schedule of suchi
member on file with the Code Authority.
(d) Members of this Division shall keep accurate records of their inds~
vidual costs, which records shall upon request, with the approval of the eAd-ii
ministrator, be available to the Code Authority.
(e) No member of this Division shall submit a price list in which the prices
of any particular article is less than the individual cost of such member, as
determined by the uniform cost accounting system provided for in Beetilon l ;i
(a) of this schedule, and such submitted price list representing the price of~.:
any particular article below the individual cost of the member submitting the
same, as shown by his certified cost sheets, shall be held in abeyance by the.;~i
Code Authority pending submission of a revised price list based on the indi~i;:
vidual cost of each article to such member. *
7. TRADE PRACTICEB
In addition to the Trade Practices set forth in the Baefe Code, the followingii
constitute unfair methods of competition for members of this Division and a~re
(a) The giving of gratuities of every description, such as keys, placqueq
cups, and any article of merchandise or anything of value, as well as all gratfial'
rings or pine, bribes, special discounts, or rebates. ~
(b) To guarantee a cash payment or installment payments as an inducemenjti~,
to secure a contract. .I)
(c) Advertising allowances, which have the effect of a concession. In prcric~
provided that this provision aball not be so Interpreted as to prohibit legitimak
advertising, or the purchase of a reasonable space in a school or college pubit
cation, based on approximately three percent (8%/) of the business secured.,
the member of the Division, as advertising, from such school or college.
(d) Where no standard or special design has been adopted by any schoolid
institution, and suggested designs are requested by such school or ntt
that wil require a speelal shank die, no member of this Division shall submat
speelal sample of the design without first receiving a bona flde andd
(e) Making repairs or refinishing any products of the Indnetry without
fair charge unless defective in material or manufacture
(a) Nothing contained in the basic Code relative to the prohibition of
livery of goods on consignment or memorandum shall apply to members of thisl
Dfv~elow rom M16bUrBcrUsans or ~FRTEBRNL AND EYal9axATIC JE~WHL
In addition to the Trade Practlees set forth in the basie Code, the following
constitute unfair methods of competition for the members of this Division
and are prohibited:
(a) To prepay any shipping charges on merchandise.
(b) To accept a note or notes in payment which do not bear Interest at the
prevailing contract rate as provided by the law of the State in which said note
may be executed.
DznexIoW ron IroarrERS dAND DEAILERB OF CHATONB, ACIASItcsTEB, AND I~rrATb'ION
PRECIOUS AND SEMILPRECIOUS STONES
1. No marcasites, chatons, or imitation preelous or semiprecious stones of
any kind or description, suitable for the manufacture of jewelry or ornamen-
tation of other material of any kind shall be sold on any terms more advanta-
geous than the following:
( A) DIBCOUNTPB
(1) A discount not exceeding three percent (3%) shall be allowed for pay-
ment within fifteen (15) days from the end of the month in which the mers-
chandise is delivered, with a tolerance of ten (10) days, and no discount of any
amount shall be allowed after the expiration of the discount periodl.
(2) No discount or rebate or any other direct or indirect consideration or
g~ratuity of any sort shall be allowed other than the discount stated in sub-
section (1) of this article.
(1) No dating shall be allowed, except that merchandise sold after the
25th of any month may be dated as of the first of the month immediately
:((0) MEMORANDUMI MIERCHANDIsE
(1) MI'erchandise on memorandum shall be submitted for a period no longer
than five (5) days from the day of delivery of such merchandise. Upon the
expirati~dn of five (5) days, such merchandise shall be returned or invoiced.
(D) PAYMENT OF ACCOUNTB
(1) Interest at the r-ate of six percent (6%) per annum,.unless otherwise
provided, by state law, shall be charged on all accounts not paid for within
shty (60) days from the end of the month in which delivery of merchandise
(2) A1 note settlement, even if effected on or prior to the discount date,
shall not be considered as payment within the meaning of this subdivision,
and no account shall be considered paid until the proceeds of Rny DOte glvOR
in settlement shall have actually been collected.
DrmIcslo BIe ana MZ~Lar~T erouses~ or AwaroIw-M~Aum Txxr~Lrow PZAELB AND
I~braOAies or PRECKOU8 AND BEI-Panolouss BrownsB Axo BEADS, ABBEIBLED
rnwr Nauxu~ousB, Cz.Aee, BaEbCurrE,~~ Ebnatws, OLIPs, RIi~a, BaoonH PLNB,
H~aIraPm Alva HaT PIns
(a) All jewelry of this class, manufactured in the United States under the
j provisions of this Gode shall be entitled to bear an NRA label, wRhich shall be
attached to such jewelry by the manufacturer, upon application approved lay
Administrator, to be accompanied by a statement of compliance with the
visions of this Code; provided that the privilege of using such labels: may'bi
suspended by the Administrator in respect to any such manufacturer
operations shall be found to be in violation of this Gode. The Imitation
and Imitation Stone division may establish appropriate plans for the issantitd
of such labels in accordance with the foregoing provisions.
DrvralowP pyon Tas MA~vrUFLT~Erva or BUIJKIEB AND Oswb~bxmrreL Won I1IEn.Llaza
DRmsa, Bass, AND, SHO~e
1. All shipments made by any member of this Division shaHl be f.o.b. point of'"
shipment e;xcepting to the live (5) boroughs of Manhattan.
Drvrazow rn M~wvrAcTIrunmS SmoLR. TwO I ORaA S Broam Wrra a RBrau,
Bu.Inmo Lr~xIT or Oxm Dol.ane (51.00) onL Lass8
(a) No product of thle Division shall be sold on terms more favorable than
net ten (10) days delivered.
DIVIBION FDB I(ANUFLCRTUREB8 OF MACHINE CHAIN
(a) An Unfinished Chain Manufacturer is a person, firm, or corporations..
producing soldered and unsoldered chain by the use of machines, or automated
tools, operated by skilled mechanics.
(b) The term "L soldered chain means chain made of any metal, precious oral
nonprecious, in any form, shape, or design, each lnk formed or linked b:
machine or automatic tools and soldered or welded. .I;
(c) The term unsoldered chain means chain made of any metal, prec~ioi~
or nonprecious, in any form, shape, or design, formed, shaped, or linked a~~
booked by machine or automatic tools.
2. MAaOHINMI HoOUR
(a) Chain machinery, including automatic tools to produce chain, s~halljI~
be operated more than forty (40) hours in any one week; provided, howeri~
that upon application to the Code Authority the period of time during f
chain machinery may be operated, for good cause shown, may be extended:
such period as the Code Authority, subject to the approval and final dea
of the Administrator, may deem necessary.
(a) All unfinished chain shall be sold net thirty (80) days, f.o.b. factory.
(b) No discounts of any kind shall be allowed.
()No express or parcel post or insurance charges shall be allowed a
deducted from invoices.
(d) No cash allowances shall be made.
(e) No rebates shall be allowed or gratuities given. i
4. BALES PROVISIONSB
(a) No distress, so-called job lot unfinished chain shall be sold at less than
coat, except upon application to the Code Authority and its approval of such
(b) No more unfinished chain, whether partially manufactured or not, shall
be given than is charged on invoice.
-(c) No unfinished chain, soldered, welded, or unsoldered, shall be sold below
actual cost of Droduction.
DIVISION FDE MANUIFACTURERS OF IPINImNG
(a) No discount shall be allowed for cash in excess of two percent (2%0)
and for a period of payment not later than the fifteenth (15th) of the month
following date of invoice, or with not due terms for a period beyond the end
of the month following date of invoice.
(a) No member of this Division shall make free delivery of merchandise
except within the city where the producing manufacturer is located, or from
any branch shipping point of said manufacturer.
(b) No member of this Division shall date any bills in advance.
(c) No member of this Division shall allow anticipation.
(d) No member of this Division shall furnish, without ebarge, findings sam-
ples in excess of twentY-five cents (254) in value in any one shipment; provided,
however, that the provisions of this section shall not apply to samples in cata-
logue form or for catalogue use.
DrvrIsoN pra THE) MANUFACTIURERSB OF COL.AR BUTPONS
1. This division shall include those manufacturers of collar buttons whose
products are made of gold of a grade less than ten karat (10 Kt.) fineness and
r shall not include manufacturers of solid plearl buttons, but shall Include only
manufacturers who sell to the jobbing trade.
a In addition to the unfair trade practices of the basic Code, the following
Practices shall constitute unfair competition for the members of this Division
and are prohibited :
(a) To manufacture or sell a metal collar button without the manufacturers'
trademark plainly stamped thereon.
(b) To stamp metal collar buttons with other than the trademark of the
manufacturerur producing the same.
(c) To furnish, without extra charge, any packaging or display material
other than regular cards.
d) To make price allowance for collar buttons sold and shipped in bulk.
(e) To manufacture or sell any Inlaid Pearl Collar Buttons other than
~22/ack, or other than White Pearl Domed.
(f) To manufacture or sell any Swaged Pearl Collar buttons other than
22/back or other than all white quality.
3 1262 08582 84865