Code of fair competition for the paper distributing trade


Material Information

Code of fair competition for the paper distributing trade as approved on December 23, 1933 by President Roosevelt
Portion of title:
Paper distributing trade
Physical Description:
1 p., 375-387 p. : ; 23 cm.
United States -- National Recovery Administration
U.S. G.P.O.
Place of Publication:
Publication Date:


Subjects / Keywords:
Paper products -- United States   ( lcsh )
Paper industry -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Approved Code no. 176."
General Note:
"Registry no. 405-3-07."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004930638
oclc - 31965808
System ID:

Full Text

i~i\~ Registry No. 405-3--07


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1. Executive Order
2. ]Letter of Transmittal
& Code




he publicati ,on is for sale by the Superintendent of Documents, GoverTn-
~n t;Printing: dflce. Wrshington, D.C., and by district of~ees of the Burena
of Foreign and Domestic: Cotmmeree.

; tlanta, Ga.: 504 Post Oface Building.
Birstiqggaza, Aila.: 257 Federal Building.
Boston, ML~ass.: 1801 Customhouse.
Bufrulo N.Y.: Chamber of Commerce Bailding.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Buite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mlich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: C'hamber of Commeree Building.
Jnecksonvrille, Fla.: Chamber of Commerce Building.
Kansas City, M~o.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, K~y.: 408 Federal Building.
MIemphis, Tenn.: 220 Federal Building.
Minneapolls, Minn.; 213 Federal Building.
New Orleans, La.: Room 225-A, Custombouse.
New York, N.Y.: 7i34 Customhouse.
NIorfolk, Va.: 406 East Plume Street.
Phiiladlellphia. Pa.: 933 Commercial Trust Building.
Pittsburgh, Pa.: Chnmber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
Ban Francisco, Calif.: 310 Customhouse.
Seattle, W~ash.: 800 Federal Building.

'I~ r

Approved Code No. 178

For The


As Approved on December 23, 1933

Executive Order
An application having been duly made, pursuant to and in full
:compliance with the provisions of Title I of the National Industrial
L::. Recovery Act, approved June 16, 1933, for my approval of a, Code
of F~air Competition for the Paper Distributing Trade, and hearings
having been held thereon and the Administrator having rendered
i:'his report containing an analysis of the said Code of Fair Competi-
;E_ion together with his recommendations and findings with respect
theretot~ and the' Administrator having found that the said Code of
FarCompetition complies in all respects with the pertinent pro-
"I'~sions of Title I of said Act and that the requirements of clauses
f) and (2) of subsection (a) of Section 3 of the said Act have been
.NOW, THEREF'ORE, I, F~ranklin D. Roosev~elt, President of
the united States, pursuant to the authority vested in me by Title I:
at he National I~ndustrial Recovery Act, approved June 16, 1933,
otherwise, do adopt and approve the report, recommendations,
an endings of the Administrator and do order that the said Code
f air Competition be, and it is hereby, approved.
Approval recommended :
Hnon 8. JoaNson,
.inn WarrE HOUsE,
Decemzber 93, 193.
27208"---244-226----88 (375)

DECEMBsEn 20, 1988.
Th7e T~kite Houlse.
SmR: This is a report of the hearing on the Code of Fair Com-
petition for the Paper Distributing T~rade conducted in Washing-
ton on September 28, 1933, in accordance with the provisions of
Title I of the National Industrial Recovery Act.
The Code contains a, provision that in the event that a general
Wholesale Trade Code shall be approved, thisr Code shall auto-
matically become a divisional code thereundr

The Code provides for a standard forty-hour week for all em-
ployees except watchmen, outside delivery men, and executives, with
a provision for not more than eight extra hours in a week for which
time and one third shall be paid.
Practically all of the employees of this Trade are of the ware-
house and office class, and are paid on a weekly basis. This mini-
mum wage under the Code will be from $14.00 to $15.00, depend-
ing on the size of the city in which the employer's business is
A minimum wage of 371/2~ fOr men and 344 for women is pre-
scribed for about 100 employees engaged in incidental processing
who are employed on an hourly basis.

Provision is made for the Code Authority to file such reports
with the Administrator as he may require, for the establishment of
a uniform accounting and costing system, for the open publication
of prices and adherence thereto, and for the prohibition of specillo
unfair trade practices.

The business of this Trade is the wholesale distribution of paper
and paper products. It comprises about 1,000 establishments and
employs approximately 20,000 persons. The Code reduces maximum
hours from about 49 to 40, and increases minimum wages. No fig-
ores are available as to employment in 1929, but the Trade estimates
that the Code will increase empomnbybut1% ndrtoei
to approximately the 1929 lev"yel.b bu 6~6adrsoei
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 limita-
tion, subsection (a) of Section 7 and subsection (b) of Section 10
hereof ; and that
(376) .


(b) The applicant gopimposes no inequitable restrictions on
admission to mebrhpterem and is truly representative of the
PprDistributing Trd; and that
(c)E~ The Code as recommended is not designed to promote monop-
olies or to eliminate or oppress small enterprises and will not operate
to discriminated against them, and will tend to effectuate the policy of
Title I of the National Industrial Recovery Act.
It is recommended therefore, that this Code be approved.
Respectfully subnutted.
Huan: S. JoHNSON,


Arrzozz I
To effectuate the policies of Title I of the National Industrial Rle-
covery Act the following is hereby submitted as a code of fair com-
petition for the paper distributing trade, and upon approval by the
President its provisions shall be the standards offair competition
for such trade and shall be binding upon every member thereof.
Trade.-The business of distribution by wholesalers or dis-
tributors of any or all lines of paper and paper products in the
United States, its territories and possessions, with the incidental
processing of such products usual and ordinary in such trade.A
"L wholesaler or "L distributor for the purpose of this code shall be
defined as a person or firm, or a definitely organized division thereof,
which buys and maintains at his or its place of business a stock of the
lines of merchandise which it distributes, or which although not
maintaining such stock buys such merchandise and in the sales thereof
assumes credit risk; and which through salesmen, advertising and/or
sales promotion devices sells to retailers and,/or institutional, com-
mercial and,'or industrial users, but which does not sell in significant
amounts to ultimate consumers.
Mlember.-Ai natural person, partnership, corporation, associar
tion, trust, trustee, trustee in1 bankruptcy, or receiver engaged in
such trade.
Ultimia~te Conzsumzer. The term ultimate consumer as used
herein is defined as a purchaser for home a.nd personal use and not
for use or consumption in trade~or business or by institutions.
EGmployee.--The term "L employee as used herein includes anyone
engaged in the trade in any capacity receiving compensation for his'
services, irrespective of the nature or method of payment of such
Emzploye.--The term "L employer as used herein includes anyone
by whom such employee is compensated or employed.
President, Act, Administrator.--The terms President '?, "LAct ",
and "LAdministrator as used herein shall mean, respectively, the
President of the United States, the National Industrial Recovery
Act, and Administrator appointed under Title I of said Act.
Association.--The National Paper Trade Association of the United
Population for the purposes of this Code shall be determined by
reference to the 1930 Federal Census.
1. If and when a General Code for the Wholesaling or Distribut-_
ing Trade, hereinafter referred to as the General Code, shall have

I! ;



been approved by the President and shall become effective, this Code
.shall become subordinate to such General Code and shall be deemed
a supplemental Code for the Paper and Paper Products Commodity
D~ivlrsion thereunder.
2. Such General Code shall, when so approved, be recognized as
binding in this Trade upon all the members thereof, and the Code
Authority designated in this Code shall constitute the Divisional
Code Authority for the Paper and Paper Products Commodity Divi.
sion under the General Code, and shall have the powers prescribed
for such Divisional Code Authority in the General Code.
3. In the event that any provision of this Code shall be found to be
inconsistent with the provisions of such General Code, the provisions
of such General Code shall prevail (except as to the ma ximum hours
and minimum wages herein prescribed which are more favorable to
the employee), and this Code shall be deemed to have been modified

1. The creation of a Code Authority to cooperate with the Ad-
ministrator in administering the provisions of this code is hereby
2. The Code Authority shall be composed of seven members se-
lected by the Board of Directors of the Association with a view to
geographical representation, two additional members selected by the
members of the trade who are not members of the Association but
who assent to this code and who agree to comply ihterqie
ments thereof and to sustain their reasonable s thaeo the poe
expenses of its administration in an equitable way with t~he approval
of the Administrator (or such two members may be selected by the
Administratorr, and not more than three members designated by the
Administrator who shall act in an advisory capacity without vote.
8. (a) The Association shall (1) impose no equitable restric-
tions on membership, and (2) submit to the Administrator true
copies of its articles of Association, bylawis, regulations, and amend-
ments thereof when made, together with such information as to
me~mbership, organization, and activities, which the Administrator
may deem necessary to effectuate the purposes of the Act.
(b) In order that the Code Authority shall at all times be truly
representative of the trade and in other respects comply with the
;provi~sions of the Act, the Administrator may provide such hearings
as: he mq~y deem proper; and thereafter if he shall find that the Code
Authority is not truly representative or does not in any other respect
comply with the provisions of the Act, may require an appropriate
modifcation in the method of selection of such Code Authority.
4. Members of the trade shall be entitled to participate in and
share the benefits of the activities of the Code Authority by assenting
to and complying with the requirements of this Code and sustaining
their reasonable share of the proper expenses of its administration.
Such reasonable share of the proper expenses of its administration
shall be determined byV the Code Authority, subjiect to review by the
Administrator, and shall be collected by thee Gode Author~ity from
the members of the Trade.

i~C"' :::;ii .:' r:


5. Powers of the Code Authority : The Code Authority (1)
shall require from members of the Trade such reports as are neces~- i
sary tefectuate the purposes of this Coe n 2) may uponit
own motion or upon complaint of any9 member of the Trade make
investigation as to the functioning and observance of any provisions
of this Code, and (3) may hear and attempt to adjust such com-
plaints, and report any violation of the Code to the Administrator
and (4) may from time to time appoint such committees as it shad
deem necessary or proper with a niew to geographical requirements,
makre rules and regulations for the organization and functioning of
such committees which shall be known as Regional Committees, and
delegate to any such committee or committees generally or in par-
ticular instances such of its powers under the Code as it shall deem
necessary or proper, subject to the approval of any actions of the'
said Regional Committee or committees by the Code Authority, and
(5) shall generally administer this Code under the sanction and with
the approval of the Administrator.
6. Alacts of the Code Authority shall be subject to review by
the Administrator and to suspension, modification, or cancellation
by him in any case in which he shall determine such act violates the
purposes of the National Industrial Recovery Act.
7i. The Administrator may from time to time after consultation
with the Code Authority issue such administrative interpretations
of the various provisions of this Code as are necessary to effecuate
their purpose.
ARrxcLE V--Houns

1. Employees engaged in the Trade shall not be required or per-
mitted to work hours in excess of the limits prescribed in the fol-
lowing schedule:

(a) Watchmen: 56 hours per week but not more than six days in
any one week.
(b) Outside deliverymen: 94/ hours in any one day and 48 hours
in any one week; provided, however, that time worked in excess of.
94/ hours in any one day and 48 hours in any one week shall bei
overtime and shall be paid for at not less than time and one third,
and no such employee shall work over 4 hours overtime in any one
(c) Executives and their personal secretaries and other employees
regularly engaged in a supervisory capacity receiving $35 or more
per week, and outside salesmen: no limitation.
(d) All other employees: 8 hours in any one day and 40 hours nl
in any one week; provided, however, that time worked in excess of
8 hours in any one day and 40 hours in any one week shall be over-
time and shall be paid for at not less than time and one third, and
no such employee shall work over 8 hours overtime in any one week.
Provided, however, that no limitation on hours of work contained.
in said schedule shall apply to employees of any class when engaged .
mn emergency repairs or emergency maintenance work involving
break-downs or protection of life and property, in which case time
and one third shall be paid for hours worked in excess of the said

1. The minimum rates of pay shall be as follows:
(a) In cities of over five hundred thousand population or in the
immediate trade area thereof at the rate of $15 per week.
(b) In cities of between two hundred fifty thousand and five
hundred thousand population or in the immediate trade area thereof
at the rate of $14.50 per week.
(c) In cities, towns, or places under two hundred fifty thousand
population or in the immediate trade area thereof at the rate of
$14 per week.
(d) The aforementioned minimum rates of pa~y shall be the mini-
mum rates of pay for a 40-hour week, except for the employees
specified under subdivision (b) of Section 1 of Article V hereof, and
for such employees said minunum rates of pay shall be the minimum
(ae) Ifn the case of employees on an hourly, part-time, or piece-
work: basis, at a rate which will not yield less for a full weeki than
the minimum rate of weekly pay above prescribed.
(f) In the case of employees continuously engaged in a mechani-
cal or factory operation at the rate of $0.371/2 per hour for male
employes and $0.34 per hour for female employees.
2. ffceboys and girls between the ages of sixteen (16) and
eighteen (18) yearseinclusive may be paid at the rate of not less than
80%0 of the minimums above mentioned otherwise applicable to them.
The number of employees classified as office boys and girls shall not
exceed 3% of the total number of employees of any employer pro-
vided that every employer having. at least ten (10) employees shall
be entitled in any event to one offce boy or girl hereunder.
3. A person wPhose earning capacity is limited because of age or
physical or mental handicap may be employed at light work; at a
wage of not less than 80ro of the minimum prescribed by this Code
provided the State Authority designated by the United States
Department of Labor shall have issued a certificate authorizing his
employment on such basis. Each member shall file with the Code
Authority a list of all such persons employed by him. The provi-
sion of this section requiring a certificate of authority shall not
become effective until sixty (60) days after the effective date of this
4. Female employees performing substantially the same work as
Sale employees shall receive the same rate of pay as male employees.
The Code Authority shall within ninety (90) days after the effective
date of this Code file with the Administrator a description of all
occupations in the Industry in which both men and women are
5. The wage rates of alil employees receiving more than the mini-
mum rates herein prescribed shall be reviewed, and such atdjust-
ments, if any, made therein as are equitable in the light of all the
circumstances, and within sixty (60) days after the effective date
hereof the Code Authority shall report to the Administrator the
Action taken by all members of the Trade under this Section.
an 6.Eery employer shall make reasonable provisions for the safety
and ealt of is eployees at the place and during the hours of
their employment. Standards for safety and health shall be sub-






mitted by the Code Authority to the Admninistrator within six .(0)~I
months after the effective date of this Code.
Analman VII--Gawarnz L~non Pnovrezows
1. No person ~under 10 years of age shall be employed by any
member of the Trade (provided, however, that where permitted byp
law persons between 14 and 16 years of age may be employed not i35
manufacturing or mechanical departments not to exceeds three hours
per day and those hours between 7 A.M. and 7 P.M. in such workt
as will not interfere with hours of day school), nor anynray one under.
18 years of age at operations or occupations hazardous in nature.
The Code Authority shall submit to the Administrator within Ob .;
days from the effective date hereof a list of such occupations. I
any State an employer shall be deemed to have complied with think
provision if he shall have on file a certificate or permit duly issued
by the Authority in such State empowered to issue employment orr
age certificates or permits showing that the employee Is of the
required age.
2. (a) Employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers oi
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpogs
of collective bargaining or other mutual aid or protection.
(b) No employee and no one seeking employment shall be rec s
quired as a condition of employment to Join any company union or
to refrain from joining, organizing, or assisting a labor orgsniamma
tion of his own choosing, and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-,
proved or prescribed by the President.
3. Within each State this Code shaUl not supersede any laws of
such State imposing more stringent requirements on employers reg-l
ulating the age of employees, wages, hours of work, owr health, fire,l
or general working conditions than under this Code..
4. Employers shall not reclassify employees or duties of oc~cupa,:
tions performed by employees so as to defeat the purposes of the Aeg~
5. Each employer shall keep Posted in conspicuous places a~cces
eible to employees the labor provisions of this Code.
1. The Code Authority shall, as soon as practicable formulate ei.
standard method of accounting and costing f~or the Trade wand sub-,
mit the same to the Administrator. When it shall have been ap-2
proved by the Administrator, every member of the Trade shall use
an accounting and costing system which conforms to the principles: .i
of, and is a~t least as detailed and complete as such standard method,
2,< (a) In any geographical region in which the Code Authority;
in its discretion believes the condition of competition in any airticleii
or articles of merchandise to require it, the Code Authority may bye
order put into effect a price reporting plan. Such plan salb
administered through a, Regional Committee appointed as provided
in Section 5; of A~rticle IV hereof. Notice of snch order shall be sent I

~ 383

I~I every known member of the Trade selling the article or articles
I specified in said order in the said geographical region. Every mem-
b- er of the Trade selling such articles in such geographical region may
i at its option within the time specified by the Code Authority in
:i nsBid order file with the Regional Commit~tee a list showing the cur-
rient prices and terms and conditions of sale includinga all differen-
tials, discounts, trade allowances and special charges), of such arti.
61es offered for sale by such member in such region. Such member
of the trade may from time to time file revisions of it~s price list
8, revision, however, shall not be effective until 5 days after the
same shall have been filed, unless a shorter period be permitted by
the Rlegional Committee. Whlen any member of the Trade shall file
any such schedule or any revision thereof, any other member of the
Trade selling in the said geographical region may also file a revision
of his own schedule to become effective as of t~he same time as such
first mentioned schedule. The Regional Committee shall send to
each member of the Trade selling such articles in such geographical
region requesting the same, acoyoalsuhcedesndfal
chanes nd eviion threo. Sch information shall also be avail-
Able to any other persons concerned requesting the same. No mem-
ber of the Trasde filing a list of prices and terms shall sell such arti-
cles within such geographical region at prices lower or terms more
favorable than those set forth in its price list aforesaid or in the
revision thereof.
After 25%0 in number and dollar volume of the known members
of the Trade selling the articles speci~ed by the Code Authority as
aforesaid in such geographical region shall have filed their lists of
prices and terms as aforesaid, notice to that effect shall be givren by
the Regional Committee to all known members of the Trade~ selling
such articles in said geographical region. Thereafter no member of
the Trade shall sell within the said geographical region any article
or articles so specified by the Code Authority directly or indirectly
by any means whatsoever at a price lower, or discounts greater, or
on terms' and conditions more favorable to the purchaser, than the
lowest failed price, the highest filed discounts, or terms and conditions
most favorable to the purchaser, then filed but nothing herein con-
tained shall prevent such member of the Trade from at any time
fiing a list of his own prices, terms, and conditions of sale.
(b)j Each schedule filed under this section shall state whether the
prices, terms, and conditions specified are justified under subdivision
(ra) or under subdivision (b) (1) of Section 4 hereof, and in the
case of Justification under subdivision (b) (1) shall identify the
schedule or schedules of the other member or members of the Tradte
justifying such prices, terms, and conditions. A schedule justified
upon the basisr of the schedule or schedules of another member or
members shall become void forthwit~h upon the cancellation or revi-
sion upwards of such justifying schedule or schedules. If Section 4
of this Article be suspended the provisions of this subdivision shall
.be suspended for the same period.
3. The Code Authority shall have power on its own initiative,
or on the complaint of any member, to investigate any price for
.any product shown in any schedule filed hereunder, and for such
purpose to require the member who filed such schedule to furnish


such information concerning the cost of such product as the
Authority shall deem necessary or proper for such purpose. If
Code Auithority, after such investigation shall determine that n
price violates any of the provisions of this Article, the Code ;A
thority shall so notify such member, and thereupon such price sa
become void and of no effect. All such decisions by the Code;
Authority shall be filed with and be subject to review by the
4. Except in performance of bona Ode contracts in existence on;
the effective date of this Code no member of the Trade shall sell a
permit the sale of any merchandise at less than the lower of the
following :
(a) In order to prevent unfair competition in the Trade and to
avoid the demoralization of the market for paper and paper prod-
ucts, the practice of selling any merchandise below the replacement
cost thereof to the seller Is hereby declared to be an unfair trade
practice. This practice results in speculative buying for a rise in i
the market and encourages periodical overproduction by manufac-
turers. Such overproduction in turn eventually makes for shut '-
downs in the paper manufacturing industry. It works back against i
the labor employed manufacturing and distributing, and against ili
the consumer. Thsdeclaration against sales below replacement
cost by a member of the Trade does not prohibit him from selling
any merchandise without adding to such replacement cost any profit
to -himself. But the selling price of merchandise should meludia
an allowance for actual wages of labor, to be fixed and published
from time to time by the Administrator.
(b) 1. The lowest price then scheduled for such merchandise un- ~
der the provisions of this Article VIII by any other member of the
Trade when sold in a geographical region where a price reporting~
plan is in effect.
2. Or, the lowest price for which such merchandise is being then
bona fide offered under the provisions of this Article VIII by a~Ly
other member of the Trade in a geographical region where a prayt
reporting plan is not in elfect; provided that a complete description :.-
of any offer or sale pursuant thereto shall immediately be mnade t~b "
the Code Authority in such form and detail as it may prescribe. :;
Bolna fide quotations made hereunder may be maintained by tilf:
seller for five days after the making thereof. r
The provisions of this Section shall remain in effect until Ju9lf
1, 1934, at which time it shall terminate and come to an end withait : 1;
further order unless renewed or extended by the Administi~ator.
5;. The restrictions specified in Sections 2 and 4 hereof shall no4*
apply: (a) To any sale made in closing out in good faith any stock,;
inwhole or in part, for the purpose of discontinuing its sale, pro~
vided a statement is made to that effect on the invoice and provided
such close-out stock is first listed with the Code Authority, and ri' s
closie-out stock shall be offered without the approval of such'
Authority. -;
(b) To sales of goods that are damaged or deteriorated in quality, :
provided that such goods are properly described by a statement to
that elfect on the invoice, and provided they shall be listed with the


Co de Authority, and no damaged merchandise sliall be oilered with-
out the approval of such Author~ity.
0 (c) To transactions with other members of the Trade, provided
that the same shall be listed with the Code Authority, and no such
transactions shall be conducted without the approval of such.
(d) To merchandise classified by the manufacturers thereof prior
to Its sale by them to thle Trade as job lots or seconds, provided such
merchandise is properly described by a statement t~o that effect on
the invoice when sold by a member of the Trade.
(e) To sales of distress merchandise sold to liquidate a defunct
business, providing that such sales shall be made in such manner and
on such terms and conditions as the Code Authority may approve.
Powers prescribed for the Code Authority in subsections (a), (b),
(c), and (e) hereof may be delegated by the Code Authority to the
Regional Committees to be appointed under Section 5i of Article
IV of this Code.
6. The Code Authority may suspend for any period of time and
from time to time, all of Section 4 of thlis Article but not part thereof
eas to any article or articles sold by the Trade in any geographical
1. Each member of the Trade shall prepare and file with the Exee-
utive Secretary of the Code Authority at such time and in such man-
ner as it may prescribe such reports and statistical information as
it, subject to the approval of the Administrator, or the Administrator
may require fromt time to time to reflect conditions in the Trade.
Any or all information so furnished by any members shall be subject
to checking for the purpose of verification by an examination of the
books and accounts and records of such member byv any disinterested
accountant or accountants or qualified person or persons designated
by the Code Authority.
S2. Except as otherwise provided in the Act, or in this Code, all
statistics data, and information filed or required in accordance with
the provisions of this Code shall be confidential, and the statistics,
data, and~information of one member shall not be revealed to another
member. No such data or information shall be published except
in combination with other similar data and in such a manner as to
-avoid the .disclosure of confidential information. The Code Au-
thority shall arrange in such manner as it may determine for the
publication currently to members of reports and statistics hereunder.
.3. The 'Code Authority shall make such reports to the Adminis-
fk~ator as he may from time to time require.
4. I~n addition to information required to be submitted to the
Code Authority, there shall be furnished to Government Agencies
such statistical information as the Administrator may deem neces-
sary for the purposes recited in Section 3 (a) of the Act.
'. 1. No member of the Trade shall publish advertising whetherr
printed, radio, display, or of any other nature), which is misleading
or inaccurate in any material particular, nor shall any member in


any way misrepresent anyn goods (including, but without lmt
its use, brand, trade mark, grade, quality, quantity, origin, size,
stance, character, weight, strength, thickness, nature, finish,
content, or preparation) or credit terms, values, policies, eie
the nature or form of the business conducted.
2. No member of the Trade shall knaowingly withhold fon
insert in any quotation or invoice any statement that makesitn
curate in any material particular.
3. No member of the Trade shall brand or mark or pack anyg
in any manner which is intended to or does deceive or mislead pzh
chasers with respect to the brand, grade, quality, quantity, strength
thickness, origin, size, substance, character, nature, finish,mteil
content, or preparation of such goods.
4. No member of the Trade shall publish advertising which rfr
inaccurately in any material particular to any competitors or thesir
goods, prices, values, credit terms, policies, or services.
5. No member of the Trade shall publish or circulate unjustified~'
or unwarranted threats of legal proceedings which tend to or ha~vei
the effect of harassing; competitors or intimidating their customers~.
Failure to prosecute in due course shall be evidence that any such i
threat is unwarranted or unjustified.
6. No member of the Trade shall secretly offer or make any pay-:l~
ment or allowance of a rebate, refund, commission, credit, unearned"';'
discount, or excess allowances, whether in the form of money or other-;
wise, nor shall a member of the Trade sell below published prices or
terms or secretly offer or extend to any customer any special service
or privilege not extended to all customers of the same class, for the
purpose of influencing_ a sale.
?. No member of the Trade shall give, permit to be given, or;I
directly offer to give, anything of value for the purpose of Infuend -X
ing or rewarding the actions of any employee, agent or representai- ;
tive of another mn relation to the business of the employer of sui5bb
employee, or the principal of such agent or the represezied pr"ty,'i
without the knowledge of such employer principal or party. Noth- :;
ing herein contained shall prohibit the free distribution of articlesr~
commonly distributed for advertising. ';
8. No member of the Trade shall attempt to induce the bread~
of any existing contract between a competitor and his customer :i
source of supply; nor shall any such member interfere with or o -':,
struct the performance of such contractual duties or series.
9. No member of the Trade shall guarantee to sell below the pricetl
of a competitor.
10. No member of the Trade shall interfere with a competitork.:l~
business through enticing of employees from the employment of such~]f
competitor, provided, however, that nothing in this paragraph sha~ll~
prevent an employee of one employer from offering his services
to a competitor, nor prevent any employer from employing the em-
ployee of another emploer
11. No member of the Trade shall deliberately misrepresent
"( frsts as "L seconds "~ or "' seconds "' as "L firsts.")
12. No member of the Trade shall execute instruments for h
sale of merchandise purporting to be contracts in which only one o
the parties is understood to be bound to perform.

387 -

18. No member of the Trade shall neglect to observe in letter and
spirit obligations assumed or contracts entered into as buyer or
14. No member of the Trade shall sell goods on consignment or
place goods in the possession of the buyer to be paid for when sold,
unless authorized by the Code -Authority due to special circumstances.
15. No member of the Trade shall misrepresent to any manufac-
turer or his agent either as to price, terms, or other considerations
the offerings of a competitive manu acturer.

1. The Code Authority may, from time to time, present to the Ad-
ministrator recommendations based on conditions in the Trade whicb'
will tend to effectuate the operation of this Code and the policy of
the Act, and in particular along the followingln:
(a) For the establishment of rules of fire trde practice and
rsimplified practice recommendations for the Trade and for t~he codi.
:fication of its trade customs, and the enforcement thereof.
(b) For the establishment of rules relating to selling and account-
ing in addition to or in substitution for the rules prescribed by See
tions 2, 8, 4, and 5 of Article VTIII hereof, or any of t~hem.
Such recommendations when approved by the Administrator shall
have the same force and effect as the provisions of this Code.

1. JThis Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with t~he provi-
s~5ions of subsection (b) of Section 10 of the~ Act, from time to timne
to cancel or modify any order, approval, license, rule or regulation
issued under Title I of said Act and specifically, but without limita-
tion, to the right of the President to cancel, or modify his approval
of this Code or any conditions imposed by him upon his approval
thereof. .
2' This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances,
-such modification to be used upon application to the Administrator,
and such notice and hearing as he shall specify, and to become effec-
-t~ive on approval of the President.

i No provision of this Code shall be so applied as to permit
monopolies, or monopolistic practices, or to eliminate, oppress, or dis-
criminate against small enterprises.

This Code shall become effective on the second Monday after its
approval by the President.
i' Approved Code No. 176.
Registry No. 405-3-)7.

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