Code of fair competition for the newsprint industry


Material Information

Code of fair competition for the newsprint industry as approved on November 17, 1933 by President Roosevelt
Physical Description:
v, 8 p. : ; 23 cm.
United States -- National Recovery Administration
U.S. G.P.O.
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Publication Date:


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


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Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
Approved Code no. 119.
General Note:
Registry no. 405-01.

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University of Florida
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aleph - 004930439
oclc - 31965573
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Full Text

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Approved Code No. II9

Registry No. 405--01






1. Executive Order
2. Letter of Transmittal
3. Code




: : I

This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
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An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code of
Fair Comlpetition of the N-ewsprint Industry, and hearings havinga
been held thereon and thle Administrator having rendered his report
containing an analysis of the said Code of Fair Ciomlpetition together
with his recommendations and findings with respect thereto, and the
Administrator having found thant the said Code of Fair Competition
complies in all respects writh the pertinlent provisions of T\itle I of
said Act and that the requirements of clauses (1) and (2) of sub~sec-
tion (a) of Section 3 of the said Act have been met:
NOW~, THEREFORE, I, Frankin D. Roosevelt, President of the
United States, pursuant to the autority rested in me by TCitle I of
the National I[ndustrial ]Recovery Act, apporoed June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Aidministrato and ~do order that the said Code of
Fair Competition be and .it is hereby approved, howeverr, feeling
that thle minimum wage for this industry should be not less than
forty (40) cents per hour, my order of approval is subject, to the
following condition:
That within 90 days from the effective date of this Code the
Administrator hold such. further hearing upon such :notice as he,
in his discretion, shall fix for the purpose of dfeterminig the adequ~lacy
of the minimum wages established in, said Code, after which his
report and recommendation shall be submitted to mne for further order
which order shall have the effect of a condition to my approval of
this Code.
November 17, 1933.
Approval recommended :
A dmlin isftrator.

21623~"- 244-34--33-3

To PREEE~rOCTOBER 26, 1933.
The Whirtc Houlse.
SmR: This is a report of the hearing on the Code of Fair Competi-
tion for the Newsprint Industry in the United States, conducted in
Washington on Septem~ber 6, 19~33, in accordance wfith the- provisions
of Title I of the National Industrial Recovery Act.


This Code provides for a standard 40-hour week for all but a
small portion of the employees in the Industry. In order to provide
flexibility necessary to meet unusual conditions, such as variation in
water supply, etc., provision is made for a 40-hour week averaged
over a 13-week period with a limitation on day workers of 48 hours
in a single week with time and one third for hours worked in excess
of 8 in a single day.
No such provision is made for tour workers who desire to be free
to exchange shifts. Provision is also made for additional hours for
them to meet. situantions where the: work requires the help of men
from an off-duty shift to change wires and wash and clean the ma-
chines after a run. Such work is too small in amount and too irregu-
lar to justify employment of an additional shift.
Employees not engaged directly in production, of whom there
are only a few in each~ plant., are on a 42-hour basis averaged over a,
4-week period. Watchmen may~ work 56 hours per week, and oilice
employees 40 hours per week averaged over a year, but. not more
than an average of 48 hours per week in any quarter. In emergency
cases, restrictions are removed for employees engaged in repair and
maintenance work. Regular reports of hours worked are required.


The basic miinimum wage rate for Imechanical workers is 38 cents
per hour. Provision is also made for a 56 lower hourly wage for
women, but it is expressly provided that men and women doing the
samne work shall receive the same pay, and that the Code Aut~hority
shall file with thie Administrator a description of all occupations in
which women are employed.


The Newsprint Industry is in a very serious condition. Consump-
tion has fallen from 3,800,000 tons in 1929 to 2,800,000 tons in 1932.
The capacity of the mills in the United States is about 1,800,000 tons.
In 1929 they produced 1,4100,000 tons and in 1932 1,008,000 tons.
The price has fallen from $65 per ton delivered in 1929 to $40 in


It is doubtful whether even the most efficient mills can produce
paper at this price in either C7anada or the UCnited States. In1 fact,
five out of eight of the largest producers in the UPnited States are
in receivership, as well as practically all of the Canadian mills,
which are not supported by their affiliates.
As newsprint is importedl duty free the United States and ('anat-
dian branches of the Industry are practically one fromt a competi-
tive standpoint., and consequently the manufacturers in the United
States can obtain no reimbursement through increased prices for any
additional costs which may be imposed upon them by this Code.
The condition of the Newsprint `Industry has a depressing and
disturbing effect on the general paper industry, both because news-
print mills can and do shift over to other types of paper, and because
the price of newsprint has a pronounced influence onl the price of
other paper.
Newsprint contracts are generally made for the calendar year and
offerings for 1934 are now being made. Some offers as low as $30
to $35 per ton, delivered, have been made by Canadian. mills. The
paper Industry as a whole is in something of a panic for fear that
a lower price for newsprint will be established and that this will
result in the inability of thle Industry to meet its increased~ costs
under the National Industrial Recovery Act.
In spite of this situation, the NewTsprint Industry has shortened its
working hours from 48 to 40 per week and increased its wage rates
substantially by this Code. Employment will be increased only
about 10r9 by thisi change because the avelnrae actual work week has
been only slightly over 40 hours. The real problem of the NewTspr~int
Industry is not to increase employment, but to mtainltain employment
at its present manufacture. I~t is estimated, however, that the total
increase in p~ay rolls in, the Industry as a result of the Codet will be
about 15%~c to eO09;.
Under the circumstances, I am of the opinion that the Industry has
offered thle mnaximum of which it is capable and that the Code is
satisfactory in all other respects.

The Achnlinistratorr finds that:
(a) Thle Clode as r~ec~ommnend ed- complies in all respects with the
pertinent provisions of Title I of the A~ct, inlcludling without limrita-
tion, subsection (a) of Sec~tion 7 an~d sutbsectionl (b) of Section 10
thereof ; anid that
(b) The applic~ant group imposes no inequitable restrictions on
admission to membership thelrein and is truly representative of the
Paper and Pulp IndustryS; and that
(c) The Codle as recommended is not dersigned to promote mono-
polies or to eliminate or oppress small enterprises and will not operate
to discriminate against them, and will tend to effectuante the policy
of Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be appro~edl.
Respect fully submiitted.
HUon S. JoaNSON,
AdmCI1in jtr~frator.

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To effectuate the policies of Title I of the ~National Industrial
Recovery Act the following is hereby established as the Code of F'air
Competition for the above industry, andl shall be binding on every
member thereof.
AnnIcLE I-DEvISrnowNs

1. The following words are used in this Codet with the meanings
herein set forth:
Newsprint "-The word "' newsprint "! is used in this Code wFithi
the same meaning with which the words" standard newsprint paper "
are used in paragraph 1672 of the Tariff Act of 1922, and in para-
gra~ph 1772~ of the Tariff Act of 1930.
Industry "-The manufacture in the United States from wood
pulp and/'or other stock of newsprint and all other papers, except
rotogaravure paper, when such other papers are mranufactured and
sold for regular use in the making of dailys newspapers.
Member "--A natural person, partnershiip, association, corpora-
tion, trust, trustee, trustee in bankrup~tcy, or receiver engaged in,
such industry.
"'Act "-Title I of the National Industrial Recovery Act.
"'Admninistrator "--The National Recoveryr Adm~inistrator.
"' The Association "-The Association of Newsprint M~anufactur~ers
of the United States.

ARTICLE II--OnaCx x xz.
1. The Advisory Comlmittee of the A~ssociat~ion is hereby_ desig-
nated as the agency for administering this Code, and is hereby con-
st~ituted and hereinafter referred to as the Code Authority." The
Administrator mayL designate three (3) persons as additional mem-
bers of such Code Authority who shall have no vote, but in all other
respects shall be members thereof.
2. Th~e expenses of administering this Code shall be borne pro rata
by all members of the Industry who accept the benefits of the Code
Authority or otherwise assent to this Code, in accordance with a
formula to be adopted by the Code Authority. The Association shall
be responsible for the payment of such expenses.

ARTICLE III--HoIRns o L.4son

1. No paper machine shall be operated in excess of 144 hours in
any week.
2. Employees in the industry shall not be required or permitted
to work hours in excess of the limits prescribed in the following
schedule :

Scheadule of wuork~ing hlou~re

(a) WTatchmen: 8 hours in any one day and 56 hours in any one
(b) Chauffeurs, truckmen, switching crews, engineers, firemen and
electric and hydroelectric operators and filter-plant employees: 168
hours in any period of four consecutive weeks, but no more than 10
hours in any one day and 48 hours in any one week.
(c) Tour-workers in continuous process operations: 8 hours in
any one day and an average of 40 hours per week in any period of 13
consecutive weeks;5 provided, however, that additional ours may be
(1) To avoid a shut-dlown due to the temporary absence of a relief
worker; (2L) In changing wires and machine clothing; and -(3) In
clean-ups, wash-ups, and ordinary repairs and adjustments in cases
where a machine is shut-down for a period of not less than eight
consecutive hours.
(d) All other laborers, mechanical workers, or artisans employed
in any plant, mill, or factory or on wFork connected with the opera-
tion of any plant, mill, or factory: An average of not more than 40
hours per week in any period of 13 consecutive weeks, but not more
than 48 hours mn any one week, provided, however, that time worked
in excess of eigrht hours in-any one day sihall beP paid for as not less
than time and one third.
(e) Executives and their personal secr~etaries and other employees
regularly engaged in a superv~isory capacity receiving $~35.00 or more
per week and outside salesmen: No lim~itation.
(f) All other employees: An average of 40 hours per week in any
calendar year and an average of not to exceed 48 hours per week
in any period of 13 consecutive weeks. Provlided, however, that no
limitation on hours of wor~k contained in said schedule shall apply
to employees of any class when engaged in emerlgency repair or
emnergency maintenance worke involving break-dowvns or protection of
life or proper~ty.
3. At such interv\als as the Code Authiority shall prescribe, every
member shall report to the Code AuthorityS (a) t.he number of man-
hours w-orked under subdivisions c () nd c (2) of said schedule
and. the ratio w~hichI Said mnan-hours bar to the total number of
man-hours of labor und-er subdivision c: and (b) shall furnish the
Code Authority such iniformnation as it may requiire in order to
enable it to determine wheth~er the limitations contained in said
schedule have been exceedled.
4. Nao employee shall be permittedl to work for more than one
member of the Indlust~ry an aggregate number of hout-s in excess of
the number prescribed in said schedule.

1. The minimum rate of wage of any laborer, mechanical worker,
or artisan~ employed in any plant, mill, or factory or on work con-
nected with the operation of any such plant, mill, or factory shall
be as follows:
Male labor, 38 cents per hour.
Female labor, 33 cents pe'r hour.

Provided, however, that where a state law provides a higher mini-
mum wage than is provided in this Code, no person employed within
such state shall be paid a wage below that required by such state
2. Piece workers shaUl be paid at rates which will yield a work-er
for an hour's work not less than the minimum grants prescribed.
3. The minimum rates of wages for all other employees except
commission salesmen shall be as follows: Not less than $1,5 per
week in any city of over 500,000 population, nor less than $14.50
per week in any city between 250,000 and 500,000 population, nor
less than $14 per week in any city between 2,500 andc 250,000 popu-
lation, nor less than $12 per week in towns of less thanl 2,500
4. The minimum wages hereby prescribed shall not inl any way
be considered as a discrimination by reason of sex andl where, in, any
case, women do substantially the same work; or perform substran-
tially the same duties under the same conditions as mien, they shall
receive the same rate of wages as men receive for doing such workr
or performing such duties. The Code Authority shaU prepare and
file with t~he Administrator within ninety days after th~e effective
date of this Code, a description of all occupations in the industry
in which women are employed.
5. The wage rates of all employees receiving mlore than the mnini-
mum rates herein prescribed shall be reviewed Andi such adljustmlents,
if any, made therein as are equitable in the light of nil t~he circum-
stances. Within ninety (90) days after the effective date hereof, the
Code Authority shall report to the Administrator the nation taken
by all members of the industry under thiis section.
6. A person whose earning capacity is limited because of phyi4sical
or mental deficiency, age, or other infirmity, may be emplo~yedd on
light work at not less than eighty (80) percent of thle minimum wage
prescribed in Section 1 hereof, if the State Authority dlesigrnated
by the United States Department of Labor shall have issued a cer-
tificate authorizing the employment of such person on such basis,
provided, however, that. the total number of such employees in ainy
one plant shall not exceed three (3) percent of the total e~mployees
in such plant. So much of this Section as requires thle issuance
of such a certificate shaUl not t~ake effect until sixty (60 days after
the effective date of this Code.


1. No person under sixteen (16) years of age shall b~e emp~loyedz in
the industry nor anyone under eighteen (18) years of age at opera-
tions or occupations hazardous in nature or detrime~ntal to health.
The Code Authority shall submit to the Administrator within sixty
(60) days after the effective date of this Code a list of such occupa-
tions. In any State an employer shall be deemed to have complied
with this provision if he shall have on file a cer~tifcate or permit duly
issued by the authority in such Stat.e empowered to issue employ-
ment or age certificates or permits showing that. the emnployee is of the
required age.
2. Employees shall have the right to organize and bargain collec-
tively through representatives of their own choosing, and shall be

free from the interference, restraint, or coercion of employers of
labor, or their agents in the designation of such representatives or in
self-organization or in other concerted activities for the purpose of
collect ve ba gaining or other mutual aid or protection. No employee
and no one seeking employment shall be required as a condition of
employment to 10om any company union or to refrain from joining,
organizing, or assisting a labor organization of his own choosing.
Employers shall comply with the maximum hours of labor, minimum
rates of pay, and other conditions of employment approved or
prescribed by the President.
3. Labor agreements now in force between members and their em-
ployees shall be affected only by such provisions of this Code as may
prescribe higher wages and shorter hours than are provided for in
such agreements.
4. Employrers shall not reclassify employees or duties of occupa-
tions per~formled by employees so as to defeat the purposes of the Act.
5. All employees shall post full copies of this Code in conspicuous
places accessible to employees.
6. Standards for safety and health shall be submitted by the Code
Authlority to the Administrator within six (6) months after the
effective date! of this Code.
7'. The Code Authority shall make a study of conditions in t~he
Industry to determine th~e feasibility of the adoption of a shorter
working day and shall, within three (3) months after the effective
date oftlhis Code, make a report of1 its findings to the Administrator.
The Code Ajuthority shall also submlit to the Administrator within
sixz months after the effective date of this Code a plan for the sta-
bilization and regularization of employment. The Code Authority
may also submit recommendations to thle Admninistrator for the es-
tablishment of rules relative to workr on Sundays and holidays, to a
weekly day of rest, and to overtime w~ork generally and rates of
wages therefore. Such recomtmendati ons, wlheni approved by the Ad-
ministrator, shall have the same force andl effTect as other provisions
of this Code.

1. The Code Authority shall, as soon as practicable, propose a
standard method of necounting and costing for the industry and sub-
~mit the! same to the Administrator. When it shall have been ap-
proved by the Adlministrator, every member shall use an accounting
and costmng systemn which conforms to the principles of, and is at
least as detailed and complete as, such standard method.

1. Eacht member shall prepare annd file wvith the Clode Auzthority
at such time and in such manner as it may prescribe, statistics
plant capacity, production, sales in units and dollars, stocks on
hand, number of employees, wage rates, employee earnings, hours of
work, and such other data or information as the Code Authority or
the Administrator may from time to time require, and in addition,
shall. furnish government ageneles such statistical information as the

Administrator may deem necessary for the purposes recited in See-
tion 3 (a) of the Act.
2. Except as otherwise provided in the Act, all statistics, data, and
information filed with or required by the Code Authority in accord-
ance with the provisions of Section 1 hereof 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.
3. The Code Authority shall manke and file with the Administ~rator
such reports as the Adniinistrator may from time to time require.

1. The failure on the part of any member of this industry to com-
P ly with the provisions of this C~ode or to perform any obligation
unposed on him thereby shall constitute a violaion of the Codle.
2.The Code Aulthorityv hall investigate alleged violations of this
Code and make reports thereon to the Administrator.


1. This Code may, with the approval of the President, be amnendled
except as to provisions required to be included therein by thle Act.
2. If any member of the industry is engaged in any other industry,
the provisions of this Code shall apply to and affect onlyv that part
of his business which is included in the industry.
3. The Code Auithority may confer with the members of the in-
dustry and the consumers of its product in respect of the stabiliza-
tion of the industry and the elimination of unfair practices and de-
structive competitive prices, and may formulate and submit to the
Administrator its recommendations to that end. Such recommendat-
tions when approved by the Administrator shall have the same~ force
and effect as any other provisions of this C'ode.
4. The Code Authority may secure current information concerning
the competition in domestic markets of imported newsprint, and if it
shall find that such newsprint is being imported into the United
States in substantial quantities or increasing ratio to domestic p~ro-
duction and on such terms or under such conditions as to render in-
effective or seriously endanger the maintenance of thiis C~ode, it may
complain to the President pursuant to the provisions of Section 3 (e)
of the National Industrial Recoveryr Act and petition for suitable
restrictions on the importation of such newspr~int.
5. In order to maintain at. all times an adequate domestic supply
of raw material for the Industry, it is the declared purpose of the
Industry to conserve forest resources and bring about the us-
tained production thereof. The Code Auth~ority shall cooperate
with the Secretary of Agriculture and other National and State
Officials and Agencies and with thle Code Authorities of other
Industries in planning such practical measures as may be necessary
to accomplish such declared purpose, and shall, upon the request
of the Secretary of Agricultur~e, join with the Lumber and Timnber

Products Industries in any conference which may be held pursuxant
to the provisions of Article XC of the Code of Fair Competition
of the Lumiber and Timber Products Industries, approved by the
President on August 19, 1933.
6. The trade standards and customs covered by the appendix
hereto attached are made a part hereof, and any deviation fromt
them is a violation of the Code.
7. This Clode and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of Section 10 (b) of the National Industrial Recovery Act,
from time to time to cancel or modify any order, approval, license,
rule, or regulation, issued under said Act, and specifically to the
right of th~e President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
8. This Code shall become effective on the second Monday after
its approval by the President.



1. Newsprint, other than tinted news. is white, cream white or blue
white, and mild variations thereof.
2. Every manufacturer shall deliver as newsprint paper, as nearly
as pra~cticable, paper of an average basis weight of 32 lb~s. F'ive
(5) percent over or under specified base of weight shall be con-
sidered good delivery for individual rolls. Orders for heavier
weight. bases (over 241 x 36-32 lbs. to 500O sheets) shall be furnished
at no price concession. Newrsprint shall not be sold -on a production
3. No newsprint. shall be designated aIs C'ulled and sold at a
reduced price.
4. The billing weight of roll newsprint shall be the gross weight
including paper and wrappers, less only the weight of cores i
returnable cores are. used. Sheet newsprint shall be billed at the
ordered weight unless there is a shortage in excess of 21/2 percent,
in which event, paper shall be billed at the actual scale weight.
5. Terms--net cash United States Funds, 30 days from date of
shipment; or from date of withdrawal from warehouse in the case
of water shipments; or 15th of month for shipments made during
preceding month or a7ny other mutually agr~eeable alrrangement
which contemplates an approximate thirty day cash settlement. 665/o
interest shall be paid on all amounts remaining unpaid on due dates.
Time of payment may be ext~endled beyond thirty dlays, provided
interest at the rate of 6%1 per annual is charged after thirty days
from date of shipment, or from date of withdrawal from warehouse
in the case of water shipments.
6. Ret~urnable cores, either paper or ir~on, shall be charged to th~e
purchaser at 2 cents per running inch and shall be returned
promptly, freight prepaid, to the manufacturer. Cores shall be
credited to the purchaser at the invoiced price when a prepaid bill
of lading showing the mu~nber and sizes of cores returned to mill of
mannufacturer is received by the manufacturer. Nonreturnable cores
shall be included in invoice price of paper and shall not be
7. No allowance shall be made for waste, dlamage, or paper left
on cores. In case of claim of any nature ap~plying on anly shipmnent,
t.he manufacturer shall be notified immediately, but no claim shall
be allowed for consequential damage.
8. Miscellaneous Differentials: For nlewsprint in sheets the differ-
entials shall not be less than those stated inl the foll.owinr~g schedule:
TWhite Colored
For sheets 150 sq. In., and larger ... _-- -,,-,-per ton__ 5.00 10, 00
For sheets 72 sq. in, to 149( sq. in__-_- __ _-- ___do____ 10.00 15. 00
For sheets 36 sq. in, to TI sq. in __ ..do__---rl__-- 15.00 20. 00

These differentials shall be with relation to the price of white
newsprint in rolls.
Two dollars per ton shall be charged for skid loads if more than
3,000 lbs.; $3.00 per ton on quantities from 3,000 lbs. to 2,000 lbs.;
and $5.00 per tonl for quantities of 2,000 lbs. and under.
Press trimmning Fhall be charged for, over the sheet price, as
.follows :
$1.00 per ton for one side.
$2.00 per ton for two sides.
$3.00 per ton for either three or four sides.
If sheet news is packed1 in ske~leton frames, this charge shall be
$5.00 per ton over the sheet price.
9. T2he foregoing trade customs and practices with regpe~ct to news-
print shall also apply to all other products of the industry.


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