Code of fair competition for the building directories and changeable signs

NATIONAL RECOVERY ADMINISTRATION i


C sae by 1.he yuperinlandent of Documents. Washington, D.O. - Price 5 cents


I


AS SUBMITTED. ON AUGUST 30, 1933


The Code for the Building Directories and Changeable Signs Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying t6 this industry


WE DO OUR PART~


UNITED STALTES
GOVERNMENT PRINTING OFFICE
WASHFINGTON: 1988


CODE OF FAIR COMVPE'llT'i N:



BUILDING DIRECTORIES'

AND CHANGEABLE SIGNS


REGI[STRY No. 1702--18
























































CODE OF FAIR COMPETITION FOR THE INDUSTRY OF
MANUFACTURING BUILDING D IR ECTORIES AND
CHANGEABLE SIGNS

PREAMBrLE ANKD AGCREEM~ENT

Whereas, the manufacturing, processing, and marketing of build-
ing directories and changeable signs is a distinctive business in
America, requiring special equipment and technical knowledge to
handle raw material and equipment.
It is hereby agreed to set. up a Code of Fair Comnpetition for the
Industry of Mlanufacturing Building Directories and Changeable
Signs for subm~ittal to the President of the United Statess as pro-
vided in the National Indlustrial Recovery Act as passed by Congress
on June 13th, 1933, and signed by the President of t~he United States
on June 16th, 1933.
It is hereby further agreed that t~he Association shall appoint a
secretary who shall be the authorized agent for the Industry of
Manufacturing Building Directories and Changeable Signs for the
purpose of carrying out t~he provisions of this Code.
ARTICLE I -FURPOSE

This code is set up for the purpose of increasing employment,
establishing fair and adequate wages, effecting necessary reduction
of hours of labor, improving standards of labor, eliminating unfair
trade practices, et~c., to the end of rehabilitating thle Industry of
Manufacturing Building Directories and Changeable Signs and
enabling it to do its part toward establishing that balance of in-
dustries which is necessary to the restoration and maintenance of the
highest practical degree of industrial relations and public welfare.
It is the declared purpose of the Industry of M~anufacturing Build-
ing Directories and Changeable Signs and of adherents to this Code,
to bring insofar as mlay be practicable, the rates of wages paid within
the Industry of Manufacturing Building Directories and C~hangeable
Signs to such levels as are necessary for the creation and mainte-
nance of the highest practicable standard of living; to restore the
income of enterprises within the industry to levels which will make
possible the payment of such wages and avoid the further depletion
and destruction of capital assets; and from timle to time to revise
the rates of wages in such manner as will currently reflect the equi-
table adjustment to variations in the cost of living.
To this end we pledge ourselves individually and collectively t~o a
maximum average weekly employment not to exceed forty hours (40)
per employee, it being understood that during the rush season em-
-ployees may be permitted to workt fifty hours (50) per weekt for a
period not to exceed three months in one year and that the average
8690--33 (11~






will be brought down to forty hours (40)j per week, through operat-
ing a less number of hours thasn the average during the dull season.
Exceptions are: Executives, Executive Assistants, Salesmen, Mainte-
nanlce 1\fen, WTatchmlen, Por~ter~s, anid Janitors.
W\e pledge ourselves to a M~inimlumn wage scale as follows:
Any mnii employed, 40 cents per hour.
Any woman employed, 30 cents per hour.
N~o one under sixteen years of age shall be employed in this
Industry..
ARTICLE II-PX~IIATOne ro

Participationl in this Code, and any subsequent revision of or addi-
tion to t~he Code, shall be extendedc to any~ person, partnership, or
corporation in the Ind-ustry of M~anufacturing Building Directories
and C'hangeable Signs who accepts his share of the cost and re-
sponsibility, as w-ell as the benefit of such participation. No ini-
tintion or entrance fees sha:ll be charged. but t~her~e shall be dues
levied onl the following basis: After dleterminingg the amount of
the budget for eachi year, each member will be assessed a monthly
appor~tionmlent somew~hat onl t.he basis of the volumne of business
done by each member, but not to such an extent as to reveal the
actual volumne. Subscription fees, or other assessments, if any, shall
be levied on the saime basis, provided not less thann sixty-five percent
o~f the miember~ship alpprove the amnount of such a~ssessmnents.

ARTICLE III--EXECFFIV\ E COMMITII'EE A1)INalIsrATnow, REPRESENTA-
TIONI, ANiD POWER

A. A~DMINIISTRATION

The Industry of Alanufacturingr Buildling D~irectories and Change-
able Signs shall set up the Building Directoryr and Changeable
Letter Sign AlaAnufneturers' Association for the purpose of assisting
the Pre~sident of the United States in adlminist~erinlg the provisions
of the Code, to, secure adherence thereto, to hear and adjust com-
plaints, to consider proposals for amnendmnents thereof and exceptions
thereto, and- ot~herw~ise to canlrry out. tihe purposes of th~e Nationall In-
dustrial Recovery Act as set forth in this Code.

B. REPRESENTATION'

The Executie C'ommritte of the Industry of Mannufacturing
Building D~irectories and Changeable Signs shall consist of three
representatives, as pr~ovided in the C'onstit~ution and Bylaws of the
Association.
C. POWERS

The Executive Committee shall be the general planning and co-
ordinating agency~ for t~he indlustry. Its members shall be empowered
to act in respect to all matters before the Committee for consider-
ation and within its jurisdiction: The Committee shall have powers
and duties as provided herein, and in addition thereto it. shall:







(a) FErom time to time require such reports as in its judgment may
be necessary to advise it adequately of the administration and en-
forcement of the provisions of this Code;
(b) Upon complaint of interested parties, or upon its own initia-
tive, make such inquiry and investigation into the operation of the
Code as may be necessary, prescribe and enforce suitable rules and
regulations for operation under the Code that are consistent with
the provisions, spirit and intent of thle National Indust~rial Re-
covery Act; and
(c) Make rules and regulations necessary for the administration
and enforcement of this Code. The Committee may delegate any of
its authority to, and may designate such agent or agents as it shall
determine.
(d) A decision representing the majority opinion of t~he members
of the Executive commlittee shall constitute the decision~ of thie Comn-
mittee except as otherwise provided in this Code.
ARTICLE IV--REGULATIONS

A. LABOR CODE
The L~abor Code for t~he Induistry shall be bindingr upon all pro-
ducers of building directories and changeable signs, to which we,
individually and collectively, hereby agree and subscribe:
1. That employees shall have the right to organize anid bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restri~nit, or coer~cion of employers of
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;
2. That no employee and no one seeking employment shall be re-
quired as a condition of employment to join any company umion or to
refrain from jommig, orgamlzmg, or assisting a labor organization
of his own choosing; and
3. That employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the president.
B. COST CODES

The Ekecutive Committ~ee shall proceed at once to provide for
standard methods of costing which shall be used by all manufac-
turers within the I~ndustry for the purpose of this section of the Clode.
It shall be an unfair method of competition for any such manu-
facturer to sell below reasonable cost, reasonable cost as here re-
ferred to meaning the standard or mode cost as determined by the
certified cost reports from at least 75% of the members of the indus-
try, and upon at least 75%0 of the production of the Industry. Such
average ideal costs shall be determined semiannually as of June 30th
and December 31st and shall include cost of production, administra-
tive, selling, and reasonable development expenses, and a reasonable
return on capital investment. The auditor or auditors preparing
certified cost reports shall only, certify and report the cost figures
and shall not disclose to any person, persons, firm, or corporation








any detailed figures or information secured from an examination of
thle books or records of any members.
The auditor selected to make examination and certification of the
cost figures of the, r~espect~ive members' accounts shall be one of a. list
of three nationally known Certified Public Accountants submitted
by the Association. The expense of sduch examination shall be borne
by the respective members.
Members shall submit this data to the association within thirty
days after the close of each calendar six-mnonth period ending June
30th and Dece~mber 31st. The Secretary\ shall tle~n prepare, with
the assistance of t~he Executive Committee, their agent or agents,
a set of standard or ideal costs for the guidance of the members.

ARTICLE V~-INDUTSTRY REGPLATIONS

A. M\ARKETING CODES

Th7e Executive Committee may establish Mlarket~ing Codes with
provisions with respect to: (a) Simplificationn and standardization
of products; (b) collection and interchange of credit information;
(c) cooperative administration of insolvent debtors; (d) and/or
other aspects of marketing which may be deemed advisable for the
goodl of the Ind-ustry by the Executive Committee.
B. TRADE PRnACTIC RUL;ES

The Trade Pranct~ice Rules are hereby approved and adopted by the
Industry as follows:
Rule 1.--Ench manufacturer shall issue his own Printed Price List
of which the Termis of Sale shall be a part and shall file a copy of
eachi current price list, andl thereafter as changes may be made or
new lists issued, writh; t.he Agency designated by the Executive
Committee.
Rurle 2.--Ench mannufacturerl shall adopt. nod maintain a 1-price
policy which will treat. all customers of a given manufacturer alike;
that, is, for a. given article, in a like quantity,1 like time of delivery,
of like quality, like distance from the same shipping: point, etc., each
customer will payS the same price. There shall be no discrimination
in price, either d-irectly or through more favorable terms, rebates,
deliv~ery! concessions, etc.
Rule~ ;3.--The secret payment or allowance of rebates; refunds,
commissions, or unlearned discounts, whether in the formn of money
or otherwise, or secretly extending to certain purchasers special serv--
ices or pirileges not. extended to all purchasers under like terms
and- conditions is an unfair trade practice and a violation of this Code.
Rule S.--The making or causing or permitting to be made or pub-
lished any false, untrue, or deceptive statement byr way of adver-
tisement or otherwise concerning the grade, quality, quantity, sub-
stance! characters, nature, origin, size, or preparation of any product
of the Industry having the tendency and capacity to mislead or de-
ceive purchasers or prospective purchasers and t~he tendency to in-
juriously affect. the business of competitors, is an unfair trade practice
and a violation of this Code.






Rule7 5.--The deafamation of competitors by falsely imputing to
them dishonorable conduct., inability t~o perform contracts, question-
ab~le credit stand~ng, or by other false representations, or the false
disparagement of thle grade or quality of their goods, with t~he tend-
ency and capacity to mislead or deceive. purchasers or prospective
purchasers, and t~he tendency to injuriously affect thle business of such
competitors is an unfair trade practice and a violation of this Code.
Rule 6.-The imitation of the trade marks, trade names, slogans,
or other marks of identification of competitors, having the tendency
and capacity to mislead or deceive purchasers or prospective pur-
chasers, and the tendency to injuriously affect the business of such
competitors is an unfair trade practice and a violation of this Code.
Rulle r.--Maliciousl~y inducing or attempting to induce the breach
of existing contracts between competitors and their customers by
any false or deceptive means whatsoever, or interfering with or
obstructing the performance of any such contractual duties or serv-
ices by any such means, with the purpose and effect of unduly
hampermng, mn~urmng, or embarrassing competitors mn their businesses,
is an unfair trade practice and a violation of this Code.
Rucle 8.--Directly or indirectly to give or permit to be given or
offer to give money or anylthinga of value to agents, employees, or
representatives of customers or prospective customers or to agents,
employees, or representatives of competitors' customers or prospec-
tive customers, without the knowledge of their employers or prin-
cipals, as an inducement to influence their employers or principals
to purchase or contract to purchase industry products from the
makers of such gift or offer, or to influence such employers or prin-
cipals to re~frain from dealings or contracting to deal with competi-
tors, with the tendencyv to injuriously affect the business of com-
petitors, is an unfair trade practice, and a violation of this Code.
Rle 9 .-Securing informationn from comnpetitomrscncernmgt their
businesses by false or misleading statements or representations or
by false impersonations of one in authority, or securing information
concerning competitors' business by bribery of their employees, and
the wrongful use thereof to unduly hinder or stifle the competition
of such competitors is an unfair trade practice and a violation of
this Code.
Ruile 10.--The sale or offering for sale of any product of the
industry by any false means or device which has the tendency and
capacity to mislead or deceive customers or prospective customers
as to the quantityv, quality, substance, or size of such product, and
the tendency to injuriously affect the business of competitors is an
unfair trade practice and a violation of this Code.
Rule 11.--Offering for sale merchandise at a price reduced from
a marked up or fictitious price, with the tendency and capacity to
mislead or deceive purchasers or prospective purchasers, and t~he
tendency to injuriously affect the business of competitors, is an
unfair trade practice and a violation of this Code.
Ru1le 10.--The shipment of goods on consignment with the intent
and with the effect of injuring a competitor, and where the effect
may be to substantially lessen competition or tend to create a mlo-
nopoly or to unreasonably restrain trade is an unfair trade practice
and a violation of this Code.







Rulle 13.--Contracts, either written or oral, are business obligations
which should be performed in letter and spirit. The repudiation
of contracts by sellers on a rising market, or by buyers on a declin-
ing market, is equally reprehensible, and is condemned by the
Industry.
ARTICLE VTI-ARBITRATION

WTe subscribe to the principle of arbitration. If a question of
fact. may be involved,~ we agree to lay forwvith all of our evidence be-
fore the Executive Committee, or its duly authorized representative,
and pledge ourselves to the following procedure:
Each member in the Industry shall be furnished with a supply of
printed forms on which to make formal complaints. These com-
p~laints shall be filed with the Executive Committee or its duly
authorized representative and shall give the facts as to any alleged
violation of thiis Code of Fair Competition, specifying the. provision
of the Code which it is alleged has been violated.
Each complaint. made hereunder shall be accompanied by a fee of
Twenty-Fivle Dollars ($25.00) as an evidence of good faith and to
apply on the cost of investigation.
The authorized representative of the Executive Comnmittee shall
miake an investigation annd if unable to secure a harmonious adjust-
mient of the matter, mutually agreeable to all parties concerned, shall
present th~e facts at the regular monthly meeting of the Executive
Committee.
If th~e Executive Ciommnittee shanll dlecidle that any~ complaint mnade
her~eunder is justified, the party against whomn the complaint is filed
shall pay to the Executive Commiittee full cost of the investigation
and the amount of the complaint, fee shall be refunded by the Execu-
tive Committee t~o the party filing the complaint.
In event th~e Executive Committee shall decide any complaint is
not justified, the full cost of the investigation shall be paid by the
complaining member, and the complaint fee applied in part pay-
ment thereof.
In addition to payment of the cost of investigation, the member
found guilty of violation of the Code may be required by the Execu-
tive Committee to pay to t~he Agency designated by the Executive
Committee such sum as the Executive Committee may decide to be
warranted, takringr into account the gravity of the violation and
the best interests of t~he Industry as a whole, but in no case in excess
of 50C0 of the sales value in a1 sales transaction violation, and in all
other Clode violations not to exceedl $500.00.
If any complaint filed hereunder shall affect. a member of the In-
dustlry, one of whose representatives is a member of the Executive
Committee, such representative shall not participate in the investi-
gation of the complaint, or in the decision by the Executive Comn-
miittee on the merits of saidl complaint, but shall have an opportunity
to appear before the Executive Commnittee to present an explanation
or defense to the charges.
Any of the parties to a controversy~ on facts, not satisfied with the
findings of the Executive Comnmittee shall have the right of appeal
either to arbitration by disinterested parties or to the Federal Court
as provided in the National Industrial Recovery Act.







ARTICLE VII-RTECALCITRANTS

The procedure on recalcitrants shall be as follows:
Any information as to concerns who may be in this Industry, who
may not be members of the organization set up for the Industry, or
who may not be following the Code of Fiair Competition adopted
by the Industry and approved under the National Industrial Re-
covery Ac~t shall immediately be reported to the Secretary of the
organization for the Industry, who shall make an investigation,
attempt to secure the cooperation of such concerns, and if unable to
do so shall report the facts to the Executive Committee who in turn
shall report the matter to the District. Attorney of the Federal Court.

ARTICLE VI[II--STB'nsnCs

In order to provide data necessaryv for thle administration of the
National Industrial Recover~y Act, the members of the Industryf
Manufacturing Building Directories and Changeable Signs shall fr
nish and the designated Agency shall gather, statistical information
from all the members of the Industry.
Each member of the Industry of M~anufacturing Building Direc-
tories & Changeable Signs shall report weekly to the designated
Agency complete information on all orders booked, as may be deter-
mined and requested byr the Executive Commlittee.
Withholding from, or inserting in, the. invoice or contract state-
ments which make the invoice or contract false record, wholly or in
part, of the transactions represented on the face thereof, is con-
demned by the industry, and is a violation of this Code.
From these reports shall be made up Monthly Reports showing
total volume of business done by the Industry of Manufaeturing
Building Directories &t Chaingeable Signs, and also semiannual
reports showing. total vol ume, Geogaraph ical Distribution, and
Industrial Distribution.

AirICLE IX--GENERAL

1. No provision in this Code shall be interpreted or applied in
such a manner as to:
a. Promote monopolies,
b. Permit or encourage unfair competition,
c. Eliminate or oppress small enterprise, or
d. Discriminate against scma~ll enterprises.
2. This Code or any of its provisions may be. cancelled or modified
and any approved rule issued thereunder shall be ineffective to the
extent necessary to conform to any action by the President under
the National Industrial Recovery Act.
3. The Executive Committee of thle Industry of Manufacturing
Building Directories and Clhangeable Signs shall from time to tim~e
make such recommendations. including amendments of the Code, as
in their judgment will aid the effective administration of this Code
or may be necessary to effectuate within the Industry of Mianurfac-
turing Building Directories and Changeable Sicgns the p~urpose of
the National Industrial Recovery Act as administered.






4. Amendment. to this Code mayr be proposed by any member to
the Executive Committee or may be initiated by it, and when
approved by the President shall be effective.
5. Violation by any member of the Industry of BuildigDrc
stories and Chaingreable Signs of any provisions of thisCoeoro
any approved Rule issued thereunder, is an unfair method of corn-
petition.
6. This Code shall be in effect beginning ten days after its approval
by t~he Presidlent.
r. It is understood that the Presidlent of the Unit~ed States may
from time to time cancel or modify any reapoalcne
rule, or regulation, issued under the National, Indusrial, Recoerye
Act. which mnay apply to this Code.
W\E AN\D EACH OF` US,? representing a mnajorityr of the concerns
in the Industry of M~anufacturing Building Directories and Change-
able: Signs, HEREBY AGREE AND PLEDGE OURSELVES to
a full performance of the provisions of this C1ODE OFi F~AIR
COMPETITION UNDER. THE NATIONAL INDUSTRIAL RE-
COY'ERY ACT a~s passed by the Congress June 13th, 1933, and
signed by the Presidlent of the United Statess Juine 16th, 1933.
R. W~. CILARK RIFG. CO.,
4311 Rarenisiooodl AvLe., (Ihicango, Illincois.
XaMERICAN BiIGN O'~ TYPE CO.,
543 If'. Wasnhinrgton, B~ll., C'hlcago, Iinoris.
CHANGEABLE SIGN &~ BULLETIN CO.,
70( M2onr~oe S~treet, Lynn, Aliassack.usetts.
JEW'ELL R1ANUFA-CTURING CO.,
Coral *lGables, Florida.
HENRY DAPPRICH n1FO. CO0.,
232 Fairhaven Road, Pittsburgh, Pa.
THE TABLET & TICKET CO.,
1091 W. Adcarns St., Chicago, Ilin~ois.
BUILDING DIRECTORY CO.,
130 Buwsh St., San Franoico, California.













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