Code of fair competition for the adhesive and ink industry as approved on September 19, 1934

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Material Information

Title:
Code of fair competition for the adhesive and ink industry as approved on September 19, 1934
Portion of title:
Adhesive and ink industry
Physical Description:
p. 19-32 : ; 23 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. G.P.O.
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Adhesives industry   ( lcsh )
Ink industry   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
"Approved code no. 521; Registry no. 614-02."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
oclc - 56010263
lccn - 34028074
ocm56010263
Classification:
lcc - HD3616.U452 A27 v appr.
System ID:
AA00009807:00001

Full Text



rNN


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


ADHESIVE AND INK

INDUSTRY


AS APPROVED ON SEPTEMBER 19, 1934


WE DO OUR PART


/ II


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


n I
Forsale by the Superintendent of Documents, Washington. D.C. - Price 5 cents


UNIV. OF FL LIB.
DOCUMENTS DIPT




U.S. DEPOSITORY


Approved Code No. 521


Registry No. 614--02


I *


I I I


1 1, 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 and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
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, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York. N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.












Approved Code No. 521


CODE OF FAIR COMPETITION
FOR THE

ADHESIVE AND INK INDUSTRY

As Approved on September 19, 1934


ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE ADHESIVE AND INK
INDUSTRY
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 approval of a Code of
Fair Competition for the Adhesive and Ink Industry, and hearing
having been duly held thereon and the annexed report on said Code,
containing findings with respect thereto, having been made and
directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects with
the pertinent provisions and will promote the policy and purposes
of said Title of said Act; and do hereby order that said Code of Fair
Competition be and it is hereby approved; provided, however, that
the Code Authority shall report to the Administrator within ninety
days from the date hereof on the feasibility of improving the provi-
sions of Article III pertaining to hours and increasing the wages
of employees engaged in light work as contained in Article IV,
Section 1.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
Approval recommended:
JOSEPH F. BATrLEY,
Acting Division Admini tractor.
WASHINGTON, D.C.,
September 19, 1934.


(19)


86858-- 11S1-72-3-












REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: A Public Hearing on the Code of Fair Competition for the
Adhesive and Ink Industry, submitted by the Ink and Adhesive
Manufacturers Association and the Adhesive Manufacturers Associa-
tion of America, was conducted in Washington on the 19th of April,
1934, in accordance with the provisions of the National Industrial
Recovery Act. These Associations claim to represent ninety-six
(96%) per cent and eighty-five (85%) per cent respectively of the
dollar sales volume of the Industry.

THE INDUSTRY

The Industry includes the Adhesive Division engaged primarily in
the manufacture of bulk adhesives other than animal glue, for in-
dustrial use, and the Ink Division engaged in the manufacture of
small packaged adhesives as well as of writing inks. A consider-
able part of the Adhesive Division is closely connected with the
Tapioca Dry Products Industry, another part is related to the Corn
Starch and Corn Dextrine Industry.
The products of the Industry compete with animal glue, casein,
nitrocellulose cements and other synthetic adhesives in various fields.
Most of the ink and small packaged adhesives are distributed in
fixed price packages, as in syndicate stores, and in this limited price
field face active competition from imports. There are varying sea-
sonal demands for the different products and in addition there are
restrictions on shipping some products in freezing weather.
About fifty known members of the Adhesive Division have an esti-
mated capital of $6,500,000. Annual sales decreased from about
$10,000,000 in 1929 to about $7,000,000 in 1933. There are about forty
concerns in the Ink and Small Packaged Adhesive group with a
normal volume of business of about $4,200,000 per year.

PROVISIONS OF CODE AS TO WAGES AND HOURS

The Code establishes a work week of forty hours and an eight
hour day, except employees may be permitted to work overtime not
to exceed sixty-four hours in any one twenty-six weeks period be-
ginning with ihe effective date of this Code, provided that time and
one-third shall be paid for all hours worked in excess of forty hours
in any week or eight hours in any day.
There are excepted from the above maximum hours persons em-
ployed in a supervisory, managerial, executive or technical capacity
who earn not less than $35.00 per week and outside salesmen. Em-
ployees engaged in emergency maintenance, or emergency repair
(20)








work are also excepted, with the provision that time and one-third
shall be paid for all hours worked in excess of forty-four in any week.
Watchmen have a basic work week of fifty-six hours with one day
of rest in every seven day period. Firemen and engineers are per-
mitted to work in excess of forty-four hours in any week, but are
compensated for all hours worked in excess thereof. Chauffeurs
and delivery men shall not be permitted to work in excess of forty-
eight hours in any one week.
In order to avoid spoilage of perishable raw material or a prod-
uct in course of process, employees so specifically required may be
permitted to work not more than ten hours in any twenty-four hour
period, with the provision that time and one-third shall be paid for
all hours worked in excess of forty in any one week.
A minimum wage rate of forty cents per hour is established for all
employees except those employees engaged in light. and non-hazard-
ous work, such as wrapping, packaging and labeling who shall not be
paid less than thirty-two and one-half cents per hour. Employees
engaged in clerical or office work have a basic minimum of fourteen
dollars per week, and office boys, laboratory boys and messengers
have a basic minimum of twelve dollars per week. Female em-
ployees performing substantially the same work as male employees
shall receive the same rate of pay as male employees. When female
employees replace male employees they shall be paid the same rate
of wages as the employees whom they displace.

ECONOMIC EFFECT OF THE CODE

Practically all the employees in the Adhesive Division are males.
On the other hand, a large proportion in the Ink Division are fe-
males. Employment in the Adhesive Division was estimated at
1,100 in 1929 and 950 in 1933; in the Ink Division at about 2,000 in
1929 and the same in late 1933. Questionnaire returns indicate that
in both divisions the number of factory wage earners fell off about
twenty-five per cent.
Prior to the President's Reemployment Agreement minimum
hourly rates in the Adhesive Division ranged between 25 and 40
cents; in July, 1933 nearly 40 per cent of the factory workers received
less than 40 cents per hour and about 13 per cent of all employees
received less than $15.00 per week. By December, 1933 most factory
workers were receiving 40 cents per hour or $16.00 for the 40-hour
week. Minimum rates were generally lower in the Ink Division.
In July, 1933 about 30 per cent of the factory workers received not
more than 30 cents per hour or $12.00 per week. Under the Presi-
dent's Reemployment Agreement the minimum 30 cents per hour was
generally adopted, equivalent to $12.00 for the 40-hour week.
As the Code provides for equitable adjustments of wages above the
minimum where such adjustments have not been made, average earn-
ings should be restored to at least their 1929 equivalent in purchas-
ing power. Complete operation of the Industry under the code pro-
visions may be expected to add slightly to employment which is al-
ready at practically the 1929 figure. The provisions for payment for
overtime should give incentive for increasing employment as far as
is practicable while still allowing sufficient flexibility to take care of







the Industry's batch processes. In the Adhesive Division payrolls
should be increased a further ten per cent above the December, 1933
figures or the 1929 average. It is estimated that in the Ink Division
the payrolls should be increased about 15 per cent above the June
1933 figures.
FINDINGS

The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of inter-state and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among trade groups, by
inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing and
relieving unemployment, by improving standards of labor, and by
otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicant associations
are industrial associations truly representative of the aforesaid In-
dustry; and that said associations impose no inequitable restrictions
on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies or
monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, this Code of Fair Competition for the Adhesive
and Ink Industry has been approved.
Respectfully,
HUGH S. JOHNSON,
Administrator.
SEPTEMBER 19, 1934.












CODE OF FAIR COMPETITION FOR THE ADHESIVE AND
INK INDUSTRY

ARTICLE I-PURPOSES

To effect the policies of Title I of the National Industrial Recovery
Act, this Code is established as a Code of Fair Competition for the
Adhesive and Ink Industry, and its provisions shall be the standards
of fair competition for such Industry and shall be binding upon
every member thereof.

ARTICLE II-DEFINITIONS

SECTION 1. The term "Adhesive and Ink Industry as used herein
includes the manufacture for sale of the products of the Adhesive
and Ink Divisions as defined hereinafter.
SECTION 2. The term "Adhesive Division" as used herein means
that portion of the Industry engaged in the manufacture for sale
in bulk of aqueous paste and liquid adhesives, flexible glue, fish
glue, dry adhesives prepared from sago starch in bulk, dry products
made from cornstarch or its derivatives but excluding the manufac-
ture of cornstarch and corn dextrine. There shall be excepted here-
from dry animal glue as such product is commonly known to the
Industry.
SECTION 3. The term Ink Division as used herein means that
portion of the Industry engaged in the manufacture for sale of
aqueous solutions and/or suspensions of dyes, pigments, and/or other
coloring agents suitable for writing, marking or equivalent purposes,
and the production for sale of all small packaged adhesives. There
shall be excluded, herefrom, marking devices and printing inks.
SECTION 4. The term Small Packaged Adhesives as used herein
means all adhesives which are usually sold for use on desks, or in
homes or schools as differentiated from use in manufacturing
processes.
SECTION 5. The term Member of the Industry" includes, but
without limitation, any individual, partnership, association, corpora-
tion, or other form of enterprise engaged in the Industry, either as
an employer or on his or its own behalf.
SECTION 6. The term employee as used herein includes any and
all persons engaged in the Industry, however compensated except a
member of the Industry.
SECTION 7. The term employer as used herein includes anyone
by whom such employee is compensated or employed.
SECTION 8. The term "Act ", "Administrator and President as
used herein shall mean respectively Title I of the National Industrial
Recovery Act, the Administrator for Industrial Recovery, and the
President of the United States.
(23)






24

ARTICLE III-HOURs

MAXIMUM HOURS

SECTION 1. No employee shall be permitted to work in excess of
forty (40) hours in any one (1) week, or eight (8) hours in any one
day; except that an employee may be permitted to work overtime
not to exceed sixty-four (64) hours in any one (1) twenty-six (26)
weeks period beginning with the effective date of this Code, provided,
however, that at least one and one-third times the regular wage rate
shall be paid for all hours worked in excess of forty (40) hours in
any one week or eight (8) hours in any one day.

EXCEPTIONS AS TO HOURS

SECTION 2. The following shall be excepted from the above maxi-
mum hours provisions:
(a) Persons employed in a supervisory, managerial, executive, or
technical capacity, who earn not less than thirty-five dollars ($35.00)
per week, and outside salesmen.
(b) Any employee engaged in emergency maintenance or emer-
gency repair work involving breakdowns or protection of life or
property, but in any such special case, at least one and one-third
times the normal hourly wage rate shall be paid for hours worked in
excess of forty-four (44) hours per week.
(c) In order to avoid spoilage of perishable raw material or a
product in course of process, employees so specifically required may
e permitted to work not in excess of ten (10) hours in any twenty-
four (24) hour period provided that at least one and one-third times
the normal hourly wage rate shall be paid for all hours worked in
excess of forty (40) in any one week.
(d) Watchmen who shall not be permitted, however, to work in
excess of fifty-six (56) hours in any one week, and who shall be al-
lowed one (1) day off in every seven (7) days.
(e) Firemen and engineers, who shall not be permitted, however,
to work in excess of forty-four (44) hours in any one week unless
they shall be compensated by payment of at least one and one-third
times the normal hourly wage rate for all time in excess of forty-four
(44) hours.
(f) Chauffeurs and delivery men, who shall not be permitted,
however, to work in excess of forty-eight (48) hours in any one
week.
EMPLOYMENT BY SEVERAL EMPLOYERS

SECTION 3. No employer shall knowingly permit any employee to
work for any time which when totaled with that already performed
with another employer, or employers, exceeds the maximum per-
mitted herein.
STANDARD WEEK

SECTION 4. NO employee shall be permitted to work more than six
(6) days in any seven (7) day period.








ARTICLE IV-WAGES

MINIMUM WAGES

SECTION 1. No employee shall be paid less than at the rate of forty
cents (400) per hour except employees engaged in light and non-
hazardous work, such as wrapping, packaging and labelling, who
shall be paid not less than at the rate of 3211 cents per hour per
week of forty (40) hours; except as follows:

CLERICAL AND OFFICE WORK

SECTION 2. No person employed in clerical or office work shall be
paid less than at the rate of $14.00 per week except that office boys,
laboratory boys, and messengers shall be paid not less than at the
rate of $12.00 per week. Such class of employees shall not exceed
10% of the total number of employees in a plant, but each plant
may have at least one such employee.

FEMALE EMPLOYEES

SECTION 3. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
employees. Any female employees replacing male employees shall be
paid at least the same rate of wages as the employees whom they
displace.
HANDICAPPED PERSONS

SECTION 4. A person whose earning capacity is limited because of
age or physical or mental handicap or other infirmity may be em-
ployed on light work at a wage below the minimum established by
this Code if the employer obtains from the State authority desig-
nated by the United States Department of Labor a certificate author-
izing his employment at such wages and for such hours as shall be
stated in the certificate. The State Authority shall be guided by
the instructions of the United States Department of Labor in issuing
such certificates. Each employer shall file monthly with the Code
Authority a list of all such persons employed by him, showing the
wages paid to, and the maximum hours of work for such employee.

PIECEWORK COMPENSATION-MINIMUM WAGES

SECTION 5. This article establishes a minimum rate of pay which
shall apply, irrespective of whether an employee is actually com-
pensated on a time rate, piecework, or other basis.

WAGES ABOVE THE MINIMUM

SECTION 6. Employers shall not reduce the rates of wages for
employees whose rates are now in excess of the minimum rate of
wages (notwithstanding that the number of hours worked in such
employment may be hereby decreased) and where in any case an
employer has not increased the rates of wages for such employees







prior to the effective date of this Code by an equitable readjustment
of all wage rates such employer shall readjust all such wage rates.
This provision shall be interpreted in the same manner that Para-
graph 7 of the President's Reemployment Agreement has been in-
terpreted by the Administrator in Interpretations No. 1 and 20.
All adjustments made shall be reported to the Code Authority
within 30 days after the effective date of this Code.

ARTICLE V-GENERAL LABOR PROVISIONS

CHILD LABOR

SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry. No person under eighteen (18) years
of age shall be employed at operations or occupations which are
harzardous in nature or dangerous to health. The Code Authority
shall submit to the Administrator for his approval within thirty
(30) days after the effective date hereof a list of such operations
or occupations. In any State an employer shall be deemed to have
complied with this provision as to age if he shall have on file a
certificate or permit duly signed by the Authority in such State
empowered to issue employment or age certificates or permits show-
ing that the employee is of the required age.

PROVISIONS FROM THE ACT

SECTION 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 of labor, or their agents, in the designation of such repre-
sentatives or in self-organization or in other concerted activities
for the purpose of collective bargaining or other mutual aid or
protection.
(b) No employee and no one seeking employment shall be re-
quired as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his own choosing; and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.

RECLASSIFICATION OF EMPLOYEES
SECTION 3. No employer shall reclassify employees or duties of oc-
cupations performed, or engage in any other subterfuge so as to
defeat the purposes or provisions of the Act or of this Code.

STANDARDS FOR SAFETY AND HEALTH
SECTION 4. Every employer shall provide for the safety and health
of employees during the hours and at the places of their employment.
Standards for safety and health shall be submitted by the Code
Authority to the Administrator for his approval within three months
after the effective date of the Code.







STATE LAWS

SECTION 5. No provision of this Code shall supersede any State or
Federal Law which imposes on employers more stringent require-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general working conditions, or insurance, or fire
protection, than are imposed by this Code.

POSTING

SECTION 6. All employers shall post and keep posted copies of the
hour, wage and general labor provisions of this Code in conspicuous
places accessible to all employees. Every member of the Industry
shall comply with all rules and regulations relative to the posting of
provisions of Codes of Fair Competition which may from time to
time be prescribed by the Administrator.

DISMISSAL FOR REASON OF COMPLAINT

SECTION 7. No employee shall be dismissed or demoted by reason
of making a complaint or giving evidence with respect to an alleged
violation of this Code.

ARTICLE VI-ORGANIZATION, POWERS, AND DUTrES OF THE CODE
AUTHORITY

ORGANIZATION AND CONSTITUTION

SECTION 1. A Code Authority is hereby established and shall be
known as the Code Authority of the Adhesive and Ink Industry.
The Industry shall be classified into two divisions, known as (1)
Adhesive Division, (2) Ink Division.
SECTION 2. The Code Authority shall consist of twelve (12) mem-
bers of the Industry to be selected as follows: Six (6) members of
the Code Authority shall be elected by the members of the Adhesive
Division by a fair method of selection; and six (6) members of the
Code Authority shall be elected by the members of the Ink Division
by a fair method of selection. The method of selection shall be fair
and subject to the approval of the Administrator.
SECTION 3. In addition thereto, there may be three (3) members,
without vote and without compensation from the Industry, to be
appointed by the Administrator to serve for such terms as he may
specify.
SECTION 4. The members of the Code Authority for each Division
selected as above set forth shall respectively act as a separate and
distinct Divisional and Fair Practice Agency for their respective
Divisions, all to the end that each Division shall be independent and
self-governing in all problems relating exclusively to such Division.
Recommendations put into effect under this paragraph and the oper-
ation thereof shall be subject to the approval of the Administrator.
SECTION 5. In order that the Code Authority shall at all times be
truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may prescribe such





28

hearings as he may 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 modification in the method of selection or composition
of the Code Authority.
SECTION 6. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor shall
any member of the Code Authority be liable in any manner, to any-
one for any act of any other member, officer, agent or employee of
the Code Authority. Nor shall any member of the Code Authority,
exercising reasonable diligence in the conduct of his duties hereunder
be liable to anyone for any action or omission to act under this
Code, except for his own willful malfeasance or nonfeasance.
SECTION 7. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Author-
ity shall (1) impose no inequitable restrictions on membership, and
(2) submit to the Administrator true copies of its articles of asso-
ciation, by-laws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem neces-
sary to effectuate the purposes of the Act.
SSECTION 8. If the Administrator shall at any time determine that
any action of a Code Authority or any agency thereof may be
unfair or unjust or contrary to the public interest, the Administrator
may require that such action be suspended to afford an opportunity
for investigation of the merits of such action and further consider-
ation by such Code Authority or agency pending final action which
shall not be effective unless the Administrator approves or unless
he shall fail to disapprove after thirty (30) days notice to him of
intention to proceed with such action in its original or modified
form.
POWERS AND DUTIES

SECTION 9. Subject to such rules and regulations as may be issued
by the Administrator, the Code Authority shall have the following
powers and duties, in addition to those authorized by other provi-
sions of this Code.
(a) To insure the execution of the provisions of this Code and to
provide for the compliance of the Industry with the provisions of
the Act.
(b) To adopt by-laws and rules and regulations for its procedure.
(c) To obtain from members of the Industry such information
and reports as are required for the administration of the Code. In
addition to information required to be submitted to the Code
Authority, members of the industry subject to this Code shall fur-
nish such statistical information as the Administrator may deem
necessary for the purposes recited in Section 3 (a) of the Act to
such Federal and State agencies as he may designate; provided that
nothing in this Code shall relieve any member of the industry of
any existing obligations to furnish reports to any Government
agency. No individual report shall be disclosed to any other mem-
ber of the Industry or any other party except to such other Govern-
mental agencies as may be directed by the Administrator.








(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Au-
thority of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
(e) To make recommendations to the Administrator for the co-
ordination of the administration of this Code and such other codes,
if any, as may be related to or affect members of the industry.
(f) 1. It being found necessary in order to support the adminis-
tration of this Code and to maintain the standards of fair competi-
tion established hereunder and to effectuate the policy of the Act,
the Code Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Code;
(b) To submit to the Administrator for his approval subject to
such notice and opportunity to be heard as he may deem necessary
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the
Industry;
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and obtain equitable
contributions as above set forth by all members of the Industry,
and to that end, if necessary, to institute legal proceedings therefore
in its own name.
2. Each member of the Industry shall pay his or its equitable con-
tribution to the expenses of the maintenance of the Code Authority,
determined as hereinabove provided (unless duly exempted from
making such contribution) and subject to rules and regulations per-
taining thereto issued by the Administrator. Only members of the
industry complying with the code and contributing to the expenses
of its administration as hereinabove provided, shall be entitled to
participate in the selection of members of the Code Authority or to
receive the benefits of any of its voluntary activities or to make u-.e
of any emblem or insignia of the National Recovery Administration.
3. The Code Authority shall neither incur nor pay any obligation
substantially in excess of the amount thereof as estimated in its
approved budget, and shall in no event exceed the total amount
contained in the approved budget except upon approval of the Ad-
ministrator; and no subsequent budget shall contain any deficiency
item for expenditures in excess of prior budget estimates except those
which the Administrator shall have so approved.
(g) To recommend to the Administrator any action or measures
deemed advisable, including further fair trade practice provisions
to govern members of the industry in their relations with each other
or with other industries; measures for industrial planning, and sta-
bilization of employment; and including modifications of this Code
which shall become effective as part hereof upon approval by the
Administrator after such notice and hearing as he may specify.








(h) To appoint a Trade Practice Committee which shall meet
with the Trade Practice Committees appointed under such other
codes as may be related to the industry for the purpose of formulat-
ing fair trade practices to govern the relationships between em-
ployers under this code and under such other codes to the end that
such fair trade practices may be proposed to the Administrator as
amendments to this code and such other Codes.
(i) To provide appropriate facilities for arbitration, between
Members of the Industry and subject to the approval of the Admin-
istrator, to prescribe rules of procedure and rules to effect compliance
with awards and determinations.

ARTICLE VII-TRADE PRACTICE RULES

SECTION 1. The following practices constitute unfair methods of
competition for members of the Adhesive Division, and are pro-
hibited.
(a) Knowingly to withhold from or insert in any quotation or
invoice any statement that makes it inaccurate in any material
particular.
(b) To brand or mark or pack any goods in any manner which
is intended to or does deceive or mislead purchasers with respect
to the brand, grade, quality, quantity, origin, size, substance, char-
acter, nature, finish, material, content or preparation of such goods.
(c) To publish advertising (whether printed, radio, display or
of any other nature), which is misleading or inaccurate in any mate-
rial particular, nor shall any member in any way misrepresent any
goods (including but without limitation its use, trademark, grade,
quality, quantity, origin, size, substance, character, nature, finish,
material, content or preparation) or credit terms, values, policies,
services, or the nature or form of the business conducted.
(d) To publish or circulate unjustified or unwarranted threats of
legal proceedings which tend to or have the effect of harassing
competitors or intimidating their customers.
(e) To give, permit to be given, or offer to give, anything of value
for the purpose of influencing or rewarding the action of any em-
ployee, agent, or representative of another in relation to the business
of the employer, of such employee, the principal of such agent or tho
represented party, without the knowledge of such employer, prin-
cipal or party. This provision shall not be construed to prohibit free
and general distribution of articles commonly used for advertising
except so far as such articles are actually used for commercial
bribery as hereinabove defined.
(f) To attempt to induce the breach of an existing contract be-
tween a competitor and his customer or source of supply; nor shall
any such member interfere with or obstruct the performance of such
contractual duties or services.
(g) To require that the purchase or lease of any goods be pre-
requisite to the purchase or lease of any other goods.
(h) To give, rent, loan, or sell any machinery or equipment to any
customer for use in mixing dry products of any kind except that
faucets, barrels, or drums for customer accommodation may be sold at
not less than the seller's individual cost.







(i) To ship goods on consignment, except to recognized exclusive
selling agents for exclusive territories.
SECTION 2. The following practices constitute unfair methods of
competition for members of the Ink Division, and are prohibited.
(a) To give, permit to be given, or offer to give, anything of value
for the purpose of influencing or rewarding the action of any em-
ployee, agent, or representative of another in relation to the business
of the employer of such employee, the principal of such agent or the
represented party, without the knowledge of such employer, principal
or party. This provision shall not be construed to prohibit free and
general distribution of articles commonly used for advertising ex-
cept so far as such articles are actually used for commercial bribery
as hereinabove defined.
(b) To publish advertising (whether printed, radio, display or of
any other nature), which is misleading or inaccurate in any ma-
terial particular, nor shall any member in any way misrepresent any
goods, (including but without limitation its use, trademark, grade,
quality, quantity, origin, size, substance, character, nature, finish,
material content or preparation) or credit terms, values, policies,
services, or the nature or form of the business conducted.
(c) Knowingly to withhold from or insert in any quotation or
invoice any statement that makes it inaccurate in any material
particular.
(d) To brand or mark or pack any goods in any manner which
tend to or does deceive or mislead purchasers with respect to the
brand, grade, quality, quantity, origin, size, substance, character,
nature, finish, material content or preparation of such goods.
(e) To offer or make any payment or allowance of a rebate, re-
fund, commission credit, unearned discount or excess allowance,
whether in the form of money or otherwise, nor shall a member of
the industry 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.

ARTICLE VIII-EXPORT TRADE

SECTION 1. No provision of this Code relating to prices or terms
of selling, shipping, or marketing, shall apply to export trade or
sales or shipments for export trade. Export Trade shall be as
defined in the Export Trade Act adopted April 10, 1918.

ARTICLE IX-MODIFICATION

SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regu-
lation issued under Title I of said Act.
SECTION 2. This Code, except as to provisions required by the
Act, may be modified on the basis of experience, or changes in cir-
cumstances, such modifications to be based upon application to the
Administrator, and such notice and hearing as he shall specify, and
to become effective on approval of the Administrator.




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ARTICLE X-MONOPOLZE, ETC.

No provision of this Code shall be so applied as to permit mqio"p
olies or monopolistic practices, or to eliminate, oppress, or discri
nate against small enterprises.

ARTICLE XI-EFFECTIVE DATE .

The provisions of this Code shall become effective .lc &
Monday after its approval by the President. i.:..
Approved Code No. 521.
Registry No. 614-02.

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