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-NATIONAL RdO Ry AD1MINI $A~#TION
CODE OF 1'~" F ITION
AS1 APPROVED ON NOVEMBER 27, 1938
;; ;; ~i,
1. Executive Order
2. Letter of Transmit~tal
ii ;ii ii
COVEENMENT PRINTING OFFICE
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This publication is for sale by the Superintendent of Documents, Govers
Printing Office, Washington, D.C., and by district offices of the Bureati of lit
and Domestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala. : 2571 Federal Building.
Boston, Mass.: 1801 Custombouse.
Buffalo, 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.: Chamber of Commerce Building.
Detroit, MIich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, F'la.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, C3alif.: 1163 Bouth Broad way.
Louisville, Ky.: 408 Federal Building,
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Custombouse.
New York, N.Y.: 734 Customhouse.
Norfolkr, Va.: 406 East Plume Street.
Philadelphia, Pa.: 938 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, M~o.: 506 Olive.8treet.
San Francisco, Calif.: 310 Custombouse.
Battle, Wash.: 800 Federal Building.
Approved Code No. 130
9 CODE OF FAIR COMPETITION
it FOR THE
PRE~CIOUS JEWELRY PRODUCING INDUSTRY
As Approved on November 27, 1933
A~nappictio hain ben dlymade, pursuant to and in full
compliance with the provisions of tteIo h ainlIdsra
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Precious Jewelry Producing Industry,
and hearings having been held thereon and th~e Administrat~or hav-
ing rendered his report. containing anl analysis of the said code of
fair competition together with his recommendations and findings
with respect thereto, and the Administrator having found that the
;"' said code of fair competition complies in all respects with the perti-
:i nent 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:
NOWT, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authorityJ vested in me by title I of
the ;Nationral In~dustrial Recovery Act, approved June 16, 1933, anid
:i: otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator and do order that the said code of
fair olmnpetitio~n be a1nd is hereby approved, subjiect to the following
That the application of the provision of section 1? article III to
the manufacturers and distributors of jewelry for schools, colleges,
fraternities, and other educational institutions, insofar as such sec-
tion provides for the payment of time and one third for all hours
over 40 per week worked by employees to whom such provision ap~-
plies, shall be stayed until ninety days after the effective date of
thscode, at hchtmsuhprovision shall become effective and
have the same force and effect as any other provision of the code.
FRANKLIN D. ROOSEVELT.
Approval recommended :
Hoon S. JoHNson,
THE HIrTE HOUsE~,
November 97, 1933.
23779'---244-9-9 0 3~
NovannanE~ 21, 193$.
Thie WhiTLte House. ":.i
Smn: A Public Hearng~ on the Code of F~air Competition for Hnisl
Precious Jewelry Producing Industry, submitted by the Congress ofy~
Precious Jewelry Producers, Inc., 608 Fifth Avenue, New Yiork City~
was conducted id Washington on the 25th of September, 1938, 1no~
accordance with the provisions of the National Industrial R~covery;
Act. This association claims to represent eighty-five percent (854)~~j
of the Industry.
The maximum hours fixed under this Code are forty (40) with
special provisions for seasonal demands of one hundred -forty-folik?
(1441) hours extra spread over one year, however, no more than
forty-eight (48) hours are to be worked by any employee in any oqne
The minimum wage is forty cents (404) per hour. Provision is
made for learners to be paid eighty ~percent (800%) of the minimum. ;
wage for a six weeks' learning period, after which they are to tbe
raised to the minimum wage rate. Such learners shall at no tone~
exceed five percent (5%) of the total number of empoesmloe
by any one employer, except that every employer o less than twenty ~,
people shall be entitled to one learner.
In 1929 there were 2,630 firms engaged in the manufacturer ofE;:I
Preiou Jwely.In 1933 this number had been reduced to 1,840. i
to which this Industry has been affected by the economic depression..:I
Sales in this Industry in 1932, were only seventeen percent (17%)f
of the 1929 level. The production of previous jewelry requires ar;
large amount of invested capital. The character of work performed
in this Industry requires. considerable skill and workmanship, result
ing in high wage scales. This is purely a luxury industry and tdhup~
has suffered considerably from the depression. The Jewelry lo-
dustry is also very seasonal, as the products are largely gift mer-
chandise. The uncertainty of the market makes it extremely dir
cult in dull times to anticipate future needs for the purpose et
building up a standing stock.
The forty (40) hour maximum will act to absorb only a m
part of the unemployed workers. A further shortening of
with- the inevitable increased labor costs, is not recommended,
ever. An additional burden on the financial structure of the ind
would doubtless increase the large number of bankrupt conc
Lack of demand prevents the passing of any part of the cost on
the consumer. The inclusion of importers, which are merchan
establishments, within the jurisdiction of this Code renders a sho
work week impractical.
The minimum wage rate will apply to only a small portion ofti
workers as the requirements are for workers of a high degree of i
The A'dministrator finds that:
;i (a) The Code, as recommended, complies in all respects with the
pertinent p rovislons of Title I of the Act, including without limi-
- station, subsection (a) of Section 7, and subsection b)of Section 10
thereof ; and that
.(b) The Cong~ress of Precious Jewelry Producers, Inc., the appli-
.cant group herein, imposes no inequitable restrictions on admission
to membership and is truly representative of the Precious Jewelry
Producing Industry; and that
(c) The Code, as recommended, is not designed to promote monop-
al~ies or to eliminate or oppress small enterprises andl will not operate
to discriminate against them, and will tend to effectuate the policy
l'of Title I of the National Industrial Recovery Act.
.This Industry has cooperated in a most satisfactory manner wit~h
the Administration in the preparation of this Code. From evidence
adduced during this hearing and from recommendations and reports-
of the various Advisory Boards it is believed that this Code, as now
proposed and revised, represents an effective, practical, equitable
solution for this Industry and its approval as herewith submitted is
Respctflly HUGH S. JOHNSON,
AiiBdmin ist rator.
-CODE OF FAIR C;OMPETFITION
PRECIOUS JEWELRY PRODUCING INDIUSTRY ?;!
To effectuate the policies of Title I of the National Indusf~is~
Recovery Act, the following provisions are submitted as a Code of~~;;l
Fair Competition for the Precious Jewelry Producing Industry, a~ndll
upon approval by the President shall be the standard of fair com-a
petition for such mdustry and shall be binding upon every member.,
1. The term Precious Jewelry Producing Industry."' its uSedl '
herein is defined to mean any manufacturer of platinum jewelty,,
gold jewelry, and any importer, wholesaler or cutter of diamnonds,^;'i
pearls and other precious or semiprecious stones or imitations
thereof, and such branches or subdivisions as may from time to'
time be included under the provisions of this Code.
2. The term gold jewelry as used herein shall mean jewelry
of the fineness of ten karat (10 kt) or better.
3. The term "L employee as used herein includes anyone engaged
in the industry in any capacity receiving compensation for his serv-
ices, irrespective of the nature or method of payment of such comp-
4. The term employer as used herein includes any person or:'i
persons by whom any such employee is compensated or employed. ;i
5. The terml Manufacturer shall mean any person who, within ~;'
or without his premises, engages in the manufacture, production, as- ;F
sembly or in the setting and /'or finishing of jewelry; and/or in the
cutting or polishing of stones.
6. The terms "'Act and "A~tdministrator as used herein shall mean'
respectively the National Industrial Recovery Act and the Ad~min-
istrator of said Act. ..'-i
1. No employee shall be permitted to work in excess of forty (40;i
hours in any one week, except that during seasonal or peak di~
mands, employees, other than office and clerical employees, may wor
not to exceed one hundred and fort~y-four (144) hours per year
excess of the maximum herein established, or forty-eight (48)ho
in any one week, or more than eight (8) hours in any one day;pr
vided, however, that the maximum hours worked shall not e
forty (40) in any one week when averaged over a period of any t
consecutive calendar months; and provided further that time
one third shall be paid for all hours in excess of forty -(40) in
one week. i
.- (a) The maximum hours fixed in the foregoing section shall not
apply to an Y employee on emergency maintenance or emergency
repair work Involving breakdowns or protection of life or property,
b"l ut in any such special case at least one and one third times the
normal rate shall be paid for all hours worked in excess of the
maximum herein established.
(b) The provisions for maximum hours herein established shall
not apply to employees engaged in a managerial or executive capacity
who now receive over thirty-five dollars ($35.00) per week, or to
::2. Employers (including individuals, partners, and officers or stock-
holders of corporations) or individual manufacturers while working
eas producers shall adhere to the working hours above prescribed.
ARrlCLE IV- AGES
1. T'he minimum wage that shall be paid by any employer to any
employee shall be not less than forty (40) cents per hour, except
learners, who shall have had no previous experience or employment
in this industry, shall be paid not less than eighty percent )
of the minimum hourly rate, provided, however, that such learners
shall be limited to na sfix() weeks' learning period, after which learn-
ing period they shall receive at least the minimum wage, and pro-
vided further, that the number of learners employed byT any one
employer in any one month shall not exceed five percent (5%) of the
total number of employees of such employer, except that an employer
of less than twenty (20) employees shall be entitled to employ one
2. This Article establishes a minimum rate of pay, regardless
of whether an employee is compensated on a time-rate, piecework,
or other basis.
3. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
4. It is the policy of the members of this industry to refrain from
reducing the compensation for employment which compensation
rwas prior to June 16, 1933, in excess of the minimum wage hzerein
set forth, notwithstanding that the hours of work in such employ-
l; ment may be reduced; and, unless since such date such adjustments
have been made, all inembers of this industry shall endeavor to
increase the pay of all employees in excess of the minimum wage,
Ii as herein set forth, by an equitable adjustment of all pay schedules.
.GENERAL LABOR PROVISIONS
1. Employers shall not employ or have in their employ any person
-under the age of sixteen (16) years; nor anyone under eighteen (18)
yer f age at operations or occupations hazardous in nature or
detrimental to health. The Code Authority shall submit to the
Administrator a list of such occupattions. In any: state an employer
sh~ll be deemed to have complied with this provision if he shall have
on fie a certificate or permit duly issued by the authority in such
::state empowered to issue employment or age certificates or permits,
showing that the employee is of the required age.
S. Employees shall have the right to organize and ba~rgain "chil4.j~;i'e
tively through representatives of their own choosing and sha~~~:.j~l:b(A '
free from the interference, restraint, or coercion of -employeris:' ll~~
labor, or their agents, in the designation of such representatives= et.~:
in self-organization or in other concerted activities for the pu~rposei
of collect~ive bargainingr or other mutual aid or protection. -- ':;'
3. No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to
refrain from joining, organizing, or assisting a labor organization o
his own choosing; and
4. Employers shall comply with the maximum hours of labori: i
minimum~ rates of pay, eihd other conditions of employme~nti::-
approved or prescribed by the Presid-ent. :
5. No employee shall work, or be permitted to workr, for a total
number of hours in excess of the number of hours herein prescribed,
whether he be employed by one or more employers. ;
6. Within each State this Code shall not supersede any laws of
such ~Stante imposing more stringent requirements on employers regu-
lating the age of employees, wages, hours of work or health, fire, or
general working conditions than under this Code.
7. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the Act.
8. Each employer shall post and keep posted in conspicuous places
full copies of the hour and wage provisions of this Code.
9. If any employer in the Precious Jewelry Producing Industry .
is also an employer of labor in any other industry the provisions of
this Code shall apply to and affect only that part of the business
which is included in the Precious Jewelry Producing Indu~stry.- '":
ARrlCLE V HOIE WORK.
On and after the effective date of this Code home work in this
industry shall be prohibited.
ARTICLE VI-AD11TN ISTRATION
To further effectuate the policies of the Act, a Code Authority is
herebyv constituted to cooperate with the Administrator in the
administration of this Code.
1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of six (6) members of theI
Precious Jewelry Producing Industry and one (1) member of the
MSedium and Low Priced Jewelry Producing Ind~ustry. The Ad-
ministrator, in his discretion, may appoint, to represent the Admin~is-
tration, not more than three (3) additional members, without vote,
to serve for such period of time as he may designate.
(b) Each trade or industrial association directly or indirectly.,
participating in the selection of activities of the Code Authority~
shall submit to the Ad~ministrator true copies of its articles of a
sociation, by-laws, regulations, and any amendments thereto, tgt
with such other information as to membership, organization, a
activities as the Administrator may deem necessary to effectuate h
p~urposes of the Act.
;:c~) In order that the Code Authority shall at all times be truly
refpresentative of the industry, and in other respects comply with the
prsovisions of the Act, the Administrator may provide such hearings
ras he mayd deem proper; and thereafter if he shall find that the Code
Authority is not truly representative, or does not in other respects
comply with the provisions of the Act, may require an appropriate
menddication in the method of selection of the Code Authority.
2. The Code Authority shall have the following duties and powers
to. the extent permitted by the Act, subject to the right of the Ad-
Ininistrator on review to disapprove or modify any action taken by
the Code Authority.
(a) There shall be filed with the Code Authorityp, at such times
and mn such manner as may be prescribed, with the approval of the
A:'~dministrator, records showing in detail the number of employees,
wage rates, employee earnings, hours of work, and such other data
or information as the Code Authority may from time to time require.
(ly) Except as otherwise provided in the Nat~iona~l Indust~rial
Recovery Act, all statistics, data, and information filed in accord-
ance with the provisions of subparagaraphs (a) and (b) of this
Article shall be confidential, and the statistics, data, and information
of one employer shall not be revealed to any other employer except
that for the purpose of administering or enforcing the provisions of
this Code, the Code Authority by their duly authorized representa-
tives (who shall not be in the employ of any employer affected by
this Code) with the approval of the Administrator, shall have access
to any and all such statistics.
-(c) W7hen complaint in writing is made to t~he Code Authority
that any of the provisions of.this Code have been violated by anly
employer, the Code Authority shall promptly investigate the facts
and may cause such investigation to be made as may be deemed
necessary to determine the facts set forth therein, and if said com-
plaint is verified by such investigation, the Code Authority shall
rasue an order to cease and desist from such violation, provided~, that
upon the refusal of any member of this industry to comply with such
Order of the Code Authority, the. Code Authority shall call t~he same
to' the attention of the Administrator and make such recommnenda-
flotas with reference thereto, as it may deem necessary to effectuate
thje purposes of the Act.
(d)_ No inequitable restrictions on admission to membership in
the Congress of Precious Jewelry Producers, Inc., or any other
ifade association or organized group, participating in the activities
of the Code Authority, shall be imposed, and any member of the
i~ndustry shall be eligible for membership in any such trade associa-
t:~ ioni or organized group upon compliance with the provisions of the
.i;., bylaws relating to membership, provided that a~ny person applying
for such membership shall, in addition to the payment of such dues
)s a~i~e imposed and paid by all other; members, accept a reasonable
hd` equlitable share of the cost of code development and administra-
tion. Such members of the industry who do not choose to become
members of any trade association or organized group may partici-
paite in the actcbvities of the Code Authority as herein provided, by
paying to the Code Authority such proportionate part of the cost of
code development and administration as the Code Authorityr, sub-
JOcL L~O 510 11umllsllliormur ayrouvalz, rulna yrouU;~in;lue a .lkK jat
3. Each member of the industry shall keep detailed records .o
purchases, imports, and sales made by him, either as pri~ncipal
agent, the date thereof, and the names and addresses of the pa~~~~
from whom acquired or to whom sold and shall submit suchreoh
including consular invoices covering imports, to tlhe Admnsrt
upon request. '
4. In addition to the information required to be submitted to the .
Code Authority, there shall be furnished to the Administrator .such,.i~
statistical information as he may deem necessaryI for the purposer,
recited in Section 3(a) of the Act.
AnaZcu: VII--STBNDARDB -5
1. No article of merchandise shall be stamped, branded, matrkei,'d,
or invoiced with any word, symbol, mark, or quality mark in viola-
tion of Federal or State stamping laws governing the stamping~';
and marking of articles made of platinum, gold, and other precious '
metals, or in violation of any Comnmerical Standard issued by the
United States Department of Commerce, nor shall any merchandise
be advertised in a manner which will violate State advertising laws
or of the rulings of the Federal Trade Commission.
2. No article of merchandise shall be marked or stamped with a
quality mark indicating gold or the fineness of gold unless the god~f
content shall be ten krarat (10 Kt.) fine or over.
3. The term Solid Gold shall be applied only to gold of twenty-
four krarat (24 Kt.) fineness.
4. No article, including raw material and finished or unfinished
merchandise, purporting to be, or to be made of platinum, in whole
or in part, shall be bought or sold unless the transaction be covered
by an invoice accurately stating the quality of the metal.
5. Whens qany2enn, quality mark, descriptive of the quality, purity,;
finnes, uatiy, weight, and/or percentage of the platinum, gold,
or other precious metal of which an article is made, is stamped or
branded on said article itself, there must also be stamped or branded
on said article: (1) the trade mark duly applied for or registered
under the laws of the United States of the manufacturer of such
article or (2) if the manufacturer has sold or contracted to sell such
article to a jobber, wholesaler, or retail dealer regularly engaged in,
business, the trade mark duly registered or applied for under the
laws of the United States of such purchaser.
6. All pearls, precious and semi-precious stones (diamonds not in-
cluded), either sold loose or mounted, shall be designated on invoices
bthe proper descriptive trade terms such as "LAustralian Sap-
pb ire ", Siam Ruby ", Natural Pearl ', Cultured Pearl ", etc. .
7. Synthetic, reconstructed, doublet, or imitation stones, culltured !l
and imitation pearls, sold either loose or mounted, shall be designa~ted~':
as such on all invoices, tags, or other descriptive medium.
ARrlTCLE VIII -TRADE PnAcTIICES c..i.i
The following practices constitute unfair methods of competition~
for members of the industry and are prohibited.
::. The" false marking or branding of any product of the industry
hichi~l has the tendency to mislead or deceive customers or prospee-
t~it~ ~astomers, whether as to the grade, quality, quantity, substance,
character, nature, origin, size, finish, or preparation of any product
of the industry, or otherwise.
2.i The making or causing or knowingly permitting t~o be made or
pubished any false, materially inaccurate, or deceptive statement by
way 37of advertisement or otherwise, whether concerning the gae
qua~Eli;iity, quantity, substance, character, nature, origin, size,fish
ori preparation of any product of the industry, or the credit terms,
:: Ialtues, policies, or services of any member of the industry, or ot~her-
wPi~se, having the tendency or. capacity t~o mislead or deceive customers
or prospective customers.
;$'The giving, delivering, loaning, consigning, or otherwise plac-
ing of any merchandise in the control or custody of any person,
~I either directly or indirectly, for the purpose of conducting a sale
(Wh'."? ether or not advertised) or for the purpose of placing the same
m~:~ any retailer's stockr.
l(a) The foregoing paragraph shall not prohibit: (1) the con-
"-signmaent of any single item, exceeding in value two thousand dollars
($2,000) to any retailer not conducting a price reduction sale; or
(2) the delivery, upon memorandum, of merchandise for purpose of
selection for a period not exceeding fifteen (15) days from date ofE
the i~eceipt of the merchandise, or upon specific call.
4. The sending or delivering of merchandise as samples, except
u on the condition that same shall be returned within fifteen (15)
says following receipt, except when a selection is sent for the pur-
pEose of preparing a catalogue.
.5. Accepting for credit, exchange, or for any other reason, articles
of jewelry, fimshed or unfinished, returned by a purchaser, unless
i such article is defective, or is not in accordance with specifications or
approved sample'; this provision shall not apply to settlements made
with any insolvent or embarrassed debtor.
6. The copying of any original design produced by another manu-
f~;i acturer, or estimating upon or making up an article in imitation of
another's design, without the permission or consent of the owner of
(a) The memorandum on which such merchandise is delivered
shall bear the following: The above itemized articles forwarded
bgrewith shall not be copied or duplicated, or altered or caused to be
;: pied, duplicated, or altered by anyone except the owner of said
r~. 7. Directly or indirectly to give or permit to be given, or offer to
gi:!: ve, money, lavish entertainment, or anything of value to agents,
~Iemployees, or representatives of customers or prospective customers,
or to ;agents, employees, or representatives of competitors' customers
oer .prospective customers, without the knowledge of their employers
?al or principals, as an inducement to mfluence their employers or prm-
Ili~'pals to purchase or contract to purchase from the makers of such
git' or offer, or to influence such employers or prmnczpals to refrain
from dealing or contracting to deal with competitors.
-~~: rk The defamation of competitors byfleyiptn ote
F dishonorable conduct, inability to plerfor cotratsg qetioablem
disparagement of the grade or quality of their goods ;. ..r: iijc e
9. The selling by any manufacturer of finding to jobbers or a
who do not maintain facilities for assembling these finidings, or
do not send such findings to assemblers who come within the pa
visions of this Code, so far as wages and hours aire concerned. .
10. The renting or loaning of bench space by any manufacturer g,
and/or other manufacturing facilities for the purpose of manufc.
turning jewelry, thus enabling the user to compete unfairly with mang@
afacturers who are obliged to maintain such facilities.
1. No merchandise shall be sold on terms longer than six (6)
months net average.
(a) Mountings and articles of jewelry which do not contain die,-
monds, precious stones, or pearls, shall not be sold on terms longer*
than four (4) months net or season settlement January 1st or July 1~st
(b) Loose stones of a price of $3.00 per karat or less, or the equiva-
lent thereof, shall not be sold on terms more favorable than thir~ee
percent (3%0) cash discount on or before the 15th of the following
month--four months net.
2. No dating shall be allowed, except that a fifteen (15) day tol-
erance is permitted for adjustment of payment to customary m~onthly^
or seasonal disbursement dates.
3. Interest at the rate of six percent (6ro) per annum shall
be charged from due date, unless otherwise provided by State laws.
4. No matrcasites, chatons, or imitations of precious or semi-
precious stones of any kind or description, suitable for the manufac-
ture of jewelry or ornamentation of other material of any kind, shall
be sold on any terms more favorable to the purchaser than ~the
(a) Three percent (3%0) discount for payment-within fifteen (15)
days from the end of the month in which merchandise is delivered,
subject to a tolerance of ten (10) days.
(b) No dating shall be allowed, except that merchandise sold
after the 25th of the month may be dated as of the first of the month
(c) Interest at the rate of six percent (60J) per annum, unless
otherwise provided by State laws, shall be charged on all accounts
unpaid within sixty (60) days from the end of the month in which
delivery of merchandise was made.
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of subsection (b) of Section 10 of Title I of the National
Industrial Recovery Act, from time to time to cancel or modify any;
order, approval, license, rule, or regulation issued under Title 1~ of.
said Act, and specifically, but without limitation, to the-r.Zight.r~ of
the President to cancel or modify his approval of this Code or any
conditions imposed by him upon his approval thereof.
'. Thise Code, except as to provisions required by the Act, may be
zodifiied or amended on the basis of experience or changes mn cir-
cumnstances, such modifications or amendments t~o be based upon
application to the Atdministrator and such notice and hearing as he
s hall specify, and to become effective on approval of the President,
uInless otherwise provided.
ARTICLE XCI-AqONOPOLIES, ETC.
NPo provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discriminate
aganst small enterprises.
ARTICLE XII-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
IS; will be made impossible of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that' price mn-
creases should be delayed and that, when mad-e, the same should, so
far as reasonably possible, be limited to actual increases in the seller's
ARTICLE XYIII--EFFECTIVE DBrs
This Code shall become effective on the 3rd day after its approval
j by the President.
ARTICLE XIV SUPPLEMIENTARY PROVISIONS
!illThe following Divisions (Schedules A and B) are supplementary
]; to, and constitute part of, the Code of Fair Competition for the
Precious Jewelry Producing Industry. Such schedules apply to only
'' those particular Divisions as are indicated by the specific headings.
;j' Any provision of the supplementary Codes that may be inconsistent
with the provisions of the Basic Code shall prevail.
~i. Approved Code No. 180.
B egistry No. 1211MML.
DrvIsron py)& THQn MAiNUFACURWERs AND DISTRIBT79R OF JEWLRY FEDR S3CHBO~
COIZ;EGE, $RATE~nRNFF ESAND OTHER EDUdATIONAL INSTITUTIONS
1. Con~tracts.--(a) In order to meet the increased cost of gold, following ~the;i
Executive Order of the President of August 28, 1933, it is recognized that pricesl;:;l
in contracts for purchase of gold products which were made prior to said
Executive Order and are in full force and effect between members of this 1:
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
of a bbna fide existing contract between a competitor and the customer of such
competitor during the term covered by such contract, or interfere with or
obstruct the performance of any duty or service provided by the terms thereof
(e) Where a fraternity controls the manufacture and distribution of its
insignia under contract, it is an unfair trade practice for unauthorized persons
to manufacture, solicit, or accept orders for such insignia.
2. Discountfs.-(a) Discounts on all orders sold direct from any manufacturer .
of this Division 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 oil of the list price filed with the Code Authority as may,
with the approval of the Administrator, be determined by such Gode Authority.
(b) Discounts on all orders placed through local dealers by salesmen shall
be uniform as to purchasers of the same class, grade, quality, and/or quantity
and ait such amount off of the list price filed with the Code Authority, as may,
with the approval of the Administrator, be determined by such Code Authority.
(c) Oash and trade discounts, other than provided for in sections (a) and
(b) of this Article, are hereby prohibited.
3. Deposite.--(a) Deposits on the purchase price of class emblems and fra-
ternity jewelry shall be required with the order, as follows:
(1) On each class emblem order, not less than one dollar ($1.00) deposit
where the retail selling price exceeds three dollars ($3.00) but is less than
ten dollars ($10.00).
(2) On each class emblem order not less than three dollars ($3.00) deposit
where the retail selling price exceeds ten dollars ($10.00).
Provided, however, that no deposit shall be forfeited except for arbitrary
cancellation or rejection of the order, or any part thereof.
(3) Not less than ten percent (10%/), and in no case less than one dollar
($1.00) deposit on all regular orders for fraternity jewelry, and on special
orders for fraternity jewelry at least fifty percent (50%) of the purchase
4. Special charges and& commissions.--(a) On all orders for high-school rings
and pins the actual cost of the necessary dies shall be charged in accordance
with a schedule submitted by the Code Authority and approved by the Adminie-
(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 commis-
sion as shown by the schedule thereof filed with the Code Authority.
5. Sales prov~isioJns.--(a) No member of this Division shall sell, exchange, or
offer for sale, any product of this Division at a price below his own individual
cost, as determined by an adequate cost-finding system, capable of uniform
application to the Industry, to be developed and set up by the Code Authority,
subsequent to the effective date of this Code, and when approved by the-;
Administrator, shall be used by all members of this Division as the basis fo ir
determining their individual cost. i
6. Price lists.--(a) Each member of this Division shall, within five (5) days''*;:
after the effective date of this Code, file with the Code Authority, a schedule:l'/
atii:i~: ch~il net current prices lists and discount sheets, on forms prescribed by the
Code Authority, and approved by the Administrator.
(b) Revised schedules of price lists and discount sheets may be filed from
tim;j;.;.;ie to time thereafter with the Code Authority by any member of this Divi-
-igin, to become effective upon the date specified by such member, which data
ahall be not less than ten (10) days after the fiing of such revised schedules
i;i with the Code Authority.
(e) No member of this Division shall sell, exchange, or oiler for sale any
,product of this Division at a price less than set forth in the schedule of such
linember on file with the Code Authority.
(4) Members of this Division shall keep accurate records of their individual
al:: costs, which records shall, upon request, with the approval of the Administrator,
b!: e available to the Code Authority.
(e) No member of this Division shall submit a price list in which the price
lof any particular article is less than the individual cost of such member, as
d' ;etermined by the uniform cost accounting system provided for in Section 5 (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,
C; as. shown by his certified cost sheets, shall be held in abeyance by the Code
Authority, pending submission of a revised price list based on the individual
1'1 cost of each article to such member.
7. Trade Practices.--In addition to the Trade Prnetices set forth in the Basie
Gode, the following constitute unfair methods of competition for members of
P" this Division and are prohibited:
(a) The giving of gratuities of every description, such as keys, placques,
enps, and any article of merchandise or anything of value, as well as all gratis
rings or pins, bribes, special discounts, or rebates.
(b) To guarantee a cash payment or installment payments as an inducement
to secure a contract.
(e) Advertising allowances, which have the effect of a concession in price,
-provided that this provision shall not be so interpreted as to prohibit legitimate
advertising, or the purchase of a reasonable space in a school or college publi-
cation, based on approximately three percent (3%o) of the business secured
by the member of the Division, as advertising, from such school or college.
(d) ~Where no standard or special design has been adopted by any school
or institution, and suggested designs are requested by such school or institu-
tion, that will require a special shank die, no member of this Division shall
submit a special sample of the design without first receiving a bona fide and
definite signed order.
(e) Making repairs or refinishing any products of the Industry without a
fair charge unless defective in material or manufacture.
8. Consignmenct.--(a) Nothing contained in the basic Code relative to the
Prohibition of delivery of goods on consignment or memorandum shall apply to
members of this Division.
DTIIONso ron M~BNurbcTrunwa or .FRATERNALI IAND EMdBLE MAHQ~I 58WWEBT M.i::*
Tradle Practices.--In addition to the Trade Practices set forth in6 thi1 CD@
the following constitute unfair methods of-comPetition for the membersa AM,~
Dfision and are prohibited:
(a) To prepay any shipping charges on merchandise.
(b) To accept a note or, notes in payment which do not bear intewept aeti:
prevailing contract rate as' pr;vi~ded by the law of the State in which 9aidr aJ~i
may be executed..
UNIVERSITY OF FLORIDA
3 1262 08582 8423