-... Approved Code No. 275-Supplement No. 1
Registry No. 615-02
CODE OF FAIR COMPETITION
AND FUNGICIDE INDUSTRY
(A Division of the Chemical Manufacturing Industry)
AS APPROVED ON MAY 1, 1934
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Approved Code No. 275-Supplement No. 1
SUPPLEMENTARY CODE OF FAIR COMPETITION
AGRICULTURAL INSECTICIDE AND FUNGICIDE
As Approved on May 1, 1934
SUPPLEMENTAL CODE OF FAIR COMPETITION FOR TIIf. AGRICULTURAL
INSECTITUDE AND FUNGICIDE INDUSTRY
A DIVISION OF THE CHEMICAL MANUFACTURING 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 Supple-
mental Code of Fair Competition for the Agricultural Insecticide
and Fungicide Industry to the Code of Fair Competition for the
Chemical Manufacturing Industry, and hearings having been duly
held thereon and the annexed report on said Suplemental Code, con-
taining 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 Rec-overy,
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 annexed
report and do find that said Supplemental 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
Supplemental Code of Fair Competition be and it is hereby ap-
proved; provided, however, that the provisions of Article VI, Sec-
tion (a), insofar as they prescribe a waiting period between the filing
with the Code Authority (i.e. actual receipt by the Code Authority)
and the effective date of revised price lists or revised terms and con-
ditions of sale be and they are hereby stayed pending my further
HUGH S. JOHNSON,
Ad-min istra.tor for I nd ist iial Reco ery.
GEORGE L. BERRY,
D vi sio-n Admninistrator.
WASHINGTON, D. C.,
May 1, 1934.
REPORT TO THE PRESIDENT
The White House.
Sm: This is a report on the Supplementary Code of Fair Com-
petition for the Agricultural Insecticide and Fungicide Industry, a
division of the Chemical Manufacturing Industry, the hearing hav-
ing been conducted thereon in Washington, D.C., March 9, 1934, in
accordance with the provisions of Title I of the National Industrial
The Agricultural Insecticide and Fugicide Industry, being truly
representative of this division of the Chemical Manufacturing In-
dustry, has elected to avail itself of the option of submitting a Sup-
plementary Code of Fair Competition, as provided for in Articles
XI and XII of the Basic Code for the Chemical Manufacturing In-
dustry approved by you on the tenth day of February, 1934.
RESUME OF THE CODE-LABOR PROVISIONS
Article III states-
"All provisions of the Code of Fair Competition for the Chemical
Manufacturing Industry as approved by the President on February
10, 1934, or as it may thereafter be modified or amended, are hereby
incorporated by reference as though completely set forth herein.
Inasmuch as the Basic Code for the Chemical Manufacturing
Industry, of which the Agricultural Insecticide and Fungicide In-
dustry is a division, contains the labor provisions and as one of the
principal objects in having a basic code for the Chemical Manufac-
turing Industry was to furnish a master code for the entire Industry
which covered wages and hours for all chemical products produced
by the same company, the labor provisions specified in the Basic Code
for the Chemical Manufacturing Industry are those applying to the
Division of the Agricultural Insecticide and Fungicide Industry.
Article II gives the necessary definitions applicable to this division
of the Chemical Manufacturing Industry. The re-processing or
mixing of the finished products of the Industry are not regarded
as a part of this Industry and are not included in this Supplemen-
tary Code because the consumer, that is, the farmer or grower,
often buys material which lie. mixes himself. They are not covered
by the Code, therefore, because it is recognized that the farmer or
grower has the right to do this if he wishes, and because it is, from
a practical standpoint, inadvisable to include such operations in the
Article IV establishes a Supplementary Code Authority consisting
of ten members to be elected at. a general meeting of the Industry
which will be called by the Temporary Code Committee. Every
member of the Industry will be allowed to participate in the election.
In addition there will be not more than three members (who shall be
without vote) appointed by the Administrator to represent the Na-
tional Recovery Administration.
Article V provides the trade practice rules which shall apply
to this division of the Chemical Manufacturing Industry. These
provisions have been given a great deal of consideration in order
that the Industry's requirements for eliminating destructive price
competition may be adequately met without conflicting with the
policies of the various advisory boards of the Administration.
In this connection, Section 2 requires the jobbers of the Industry
to observe certain of the fair trade practice provisions approved for
the manufacturers of the Industry. This provision is regarded as
essential by the Industry. However, it is provided that This
section shall remain in force only for a period beginning with the
effective date of this Code and ending on the last day of the sixth
calendar month thereafter unless such period shall be extended by
Article VII exempts from the provisions of this Supplementary
Code sales or shipments for export, trade.
Article IX provides that price increases except such as may be
required to meet individual cost should be delayed, but when made
such increases should, so far as possible, be limited to actual addi-
tional increases in the seller's costs."
The Deputy Administrator in his final report to me on said
Supplementary Code having found as herein set forth and on the
basis of all the proceedings in this matter:
I find that:
(a) Said Supplementary Code is well designed to promote the
policies and purposes 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 there-
of and will provide for the general welfare by promoting the or-
ganization of industry for the purposes of cooperative action among
the trade groups, by inducing and maintaining united action of
labor and management under adequate governmental sanctions and
supervision, by.eliminating unfair competitive practices, by promot-
ing the fullest possible utilization of the present productive capacity
of industries, by avoiding undue restriction of production (except
as may be temporarily required), by increasing the consumption of
industrial and agricultural 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 Supplementary Code as approved complies in all re-
spects with the pertinent provisions of said Title of said Act, includ-
ing without limitation Subsection (a) of Section 3, Subsection (a)
of Section 7, and Subsection (b) of Section 10 thereof; and that
the applicant group of manufacturers is truly representative of the
aforesaid Industry; and that the Agricultural Insecticide and Fungi-
cide Association, which was organized since the public hearing 'was
scheduled, imposes no inequitable restrictions on admission to
(d) The Supplementary Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate 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
For these reasons, therefore, I have approved this Supplementary
HUGcI S. JOHNSON,
MAY 1, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE AGRICULTURAL INSECTICIDE AND FUNGICIDE
A DIVISION OF THE CHEMICAL MANUFACTURING INDUSTRY
To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Supple-
mentary Code for the Agricultural Insecticide and Fungicide
Industry, supplemental to the Code of Fair Competition for the
Chemical Manufacturing Industry as approved on February 10, 1934.
(a) The term "Agricultural Insecticide and Fungicide Industry"
or Industry as used herein shall be construed to include the manu-
facture of the products which are used as methods of protection
against agricultural insect, pests and fungus diseases and are such as
chemical plant sprays and dusts, soil disinfectants, cattle dips, agri-
cultural scalecides and baits, except cyanides and cyanide compounds.
The reprocessing or mixing of the finished products of the Industry,
such as prepared dusts or sprays, shall not be regarded as a part of
the Industry and are not. included in this Code.
(b) The term Member of the Industry includes, but without.
limitation, any individual, partnership, association, corporation,
legal entity, or other form of enterprise producing the products of
the Industry as defined in this Article, provided that if any manu-
facturer in this Industry is also a manufacturer in any other
industry, the provisionsn of this Code shall apply to and affect only
that part of the business of such manufacturer which is defined in
(c) The term "Association as used herein means the Agricultural
Insecticide and Fungicide Association, a nonprofit-sharing corpora-
tion organized under the laws of the State of Delaware.
(d) The term "Agricultural Sulphur Sales Agent. or Distributor "
means and includes a sales agent who buys from the manufacturer
and sells in his own name or for the account of the manufacturer and
who supplements the manufacturer's sales force and who sells as
would the manufacturer to jobbers, dealers, and. or consumers. This
classification applies only to the sale of sulphur, and not to the other
products of the Industry.
(e) The term Jobber means and includes any established whole-
sale purchaser who purchases from the manufacturer products of the
Industry as defined in this article: who carries a stock of goods of
the Industry, and who sells to dealers or consumers, and who employs
at least three outside salesmen and sells the products of the Industry
principally to dealers, and,'or at least 50% of whose sales must be to
(f) The term Dealer means and includes anyone who regularly
purchases the products of the Industry and carries a stock of the
products of the Industry, selling to consumers at a profit. One buy-
ing for his own use or principally for his own use or that of his
tenants shall not be deemed to be a dealer. A group of unincorpo-
rated consumer buyers acting collectively or through an individual
for the purpose of contracting for a joint order, is not a dealer.
(g) The term Consumer means and includes any purchaser who
purchases the products of the Industry for the purchaser's own use.
(h) The term "The Broker" means and includes any person,
partnership, corporation, or legal entity, who sells the products of
the Industry for a commission at the manufacturer's schedule prices
and terms for the account of the manufacturer.
All provisions of the Code of Fair Competition for the Chemical
Manufacturing Industry as approved by the President on February
10, 1934, or as it. may thereafter be modified or amended, are hereby
incorporated by reference as though completely set forth herein.
ARTICLE IV-ORGANIZATION, POWERS AND DUTIES OF THE CODE
ORGANIZATION AND CONSTITUTION
SECION 1. After this Code has been approved it shall be admin-
istered by a Code Authority to be immediately created and known as
the Code Authority of the Agricultural Insecticide and Fungicide
Industry. The Code Authority shall consist of ten persons, to be
selected in the following manner: A general meeting of the Industry
shall be called by the Temporary Code Committee to which shall be
invited every member of the Industry. At this meeting ten members
shall be elected by a fair method of election, subject to the approval
of the Administrator. Of these ten members, one member shall rep-
resent the Sulphur Group; one member shall represent the Nicotine
Group; one member shall represent the Pyrethrum-Retonone Group;
and seven members shall represent such other interests or territory
as deemed advisable by members of the Industry.
SECTION 2. In addition to membership as above provided, there
may be not more than three members, without vote and without
compensation from the Industry, appointed by the Administrator.
The Code Authority first elected shall hold office until August 31st,
1934, at which time successors shall be elected.
SECTION 3. The Association participating in the activities of the
Code Authority shall (1) impose no inequitable restrictions on
membership and (2) submit to the Administrator for his approval
true copies of its articles of association, by-laws, regulations, and
any amendments when made thereto, together with such other infor-
mation as to membership, organization, and activities as the Admin-
istrator may deem necessary to effectuate the purposes of the Act,
or the provisions of the Code.
SECTION 4. 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 Code, the Administrator may require an
appropriate modification in the method of selection of the Code
Authority if. after such notice and hearing as he may prescribe,
he shall find that the Code Authority is not truly representative or
does not in other respects comply with the provisions of the Code.
SECTION 5. Members of the Industry shall participate in the selec-
tion of the members of the Code Authority, share in the benefits of
the activities of the. Code Authority and sustain their reasonable
share of the expenses of its administration. Said reasonable share
of the expenses of administration shall be determined by the Code
Authority on the basis of volume of business andor such other
factors as may be d(eenled equitable, subject to review by the
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
anyone for any act of any other member, officer, agent or employee
of the Code Authority. Nor shall any member of the Code Author-
ity, exercising reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to act under
this Code, except for his own willful misfeasance or nonfeasance.
POWERS AND DUTIES
SECTION 7. The Code Authority shall have the following powers
and duties and all such other powers and duties as may be necessary
for the proper administration of this supplemental Code, the exercise
of which shall be reported to the Administrator, and if the Admin-
istrator shall determine that any action of the Code Authority or
any agent thereof may be unfair or unjust or contrary to the public
interest, the Administrator may require that the action be suspended
to afford an opportunity for investigation of the merits of such action
and further consideration by the 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 days' notice
to him of intention to proceed with the action in its original or
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the Agricultural Insecticide and
Fungicide Industry with the provisions hereof; to receive from
members of the Industry reports of complaints and violations of
the Code and to attempt to adjust all complaints and violations of
the Code which may be filed and in case of failure to adjust same
to report such complaints and violations with all facts pertaining
thereto to the Administrator. Nothing herein contained shall be
construed to relieve any member of the Industry from responsibility
for violations of this Code in any legal proceedings which may be
instituted against such member.
(b) To adopt by-laws, rules and regulations for its procedure
and for the administration and enforcement of the Code.
(c) To make recommendations to the Administrator for the
coordination of the Administration of this Code with such other
codes, if any, as may be related to the Industry or affect members
of this Industry.
(d) To secure from members of the Industry an equitable and
proportionate payment of the reasonable expenses of maintaining
the Code Authority and its activities.
(e) To appoint a trade practice committee which shall meet with
the trade practice committees appointed under other codes which
may be related to this Industry or affect members of this Industry
for the purpose of formulating fair trade practices to govern the
relationships between such industries and between members of such
industries and their distribution outlets to the end that such fair trade
practices may be proposed to the Administrator as amendments
to this Code and such other codes.
(f) The Code Authority shall obtain from members of the
Industry such data and statistics, which shall be submitted by-each
member, upon its request or upon the request of the Administrator,
as are required for the administration of this Code, except those
in relation to number of employees, hours of labor and rates of pay.
(g) When the Code Authority determines that an emergency
exists in this Industry because of destructive price cutting which
is such as to render ineffective or seriously endanger the maintenance
of the provisions of this Code, it may cause to be determined the
lowest reasonable cost of the products of this Industry, below which
costs products shall not be sold, such determination to be subject to
such notice and hearing as the Administrator may require. The
Administrator may approve, disapprove or modify the determina-
tion. When it appears that conditions have changed, the Code
Authority upon its own initiative or upon the request of any
interested party shall cause the determination to be reviewed.
ARTICLE V-TRADE PRACTICE RULES
SECTION 1. The fololwing are declared to be unfair trade practices,
the engaging in which by members of the Industry is hereby declared
to be a violation of this Code:
(a) During the period of an emergency and after the lowest rea-
sonable costs of products of the Industry have been approved in
accordance with the provisions of Article IV, Section 7 (g), it shall
be an unfair trade practice for any member of the Industry to sell or
offer to sell any products of the Inudusty for which the lowest rea-
sonable cost has been determined at such prices or upon such terms or
conditions of sale that the buyer will pay less therefore than the
lowest reasonable cost of such products.
(b) To give free goods for experimental or other purposes, with
the exception of free samples to Agricultural Experimental tSati'ns
an other Government agencies, excepting in amounts not exceeding
the value of $5.00 at one time and except where materials are used
for experimental purposes directly under the supervision of the seller,
and excepting new products which have been on the market for less
than one year.
(c) To give, permit to be given, or directly offer to give. anything
of value for the purpose of influencing or rewarding the action of
any employee, agent or representative of another in relation to the
business of the employer of such employee, the principal of such
agent o rthe represented party, without the knowledge of such em-
ployer, principal 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 conm-
mercial bribery as hereinbefore defined.
(d) To make or offer to make any payment of a bonus, advertis-
ing allowance, secret rebates, secret refunds, unearned credits, un-
earned discounts, or unearned commissions, whether in the form of
money or otherwise, or extend to certain purchasers special services
or privileges not extended to all purchases on like terms and
(e) To give or offer prizes, premiums, or gifts, in connection with
the sale of products or as an inducement thereto, by any scheme which
involves lottery, misrepresentation or fraud.
(f) To withhold from or insert in any quotation or invoice any
statement that makes it inaccurate in any material particular.
(g) To make any guarantee against decline in price.
(h) To supply accounts on consignments and/or trust certificate
agreements, except that patented phytonomic oils may be consigned
to spray oil emulsion manufacturers.
(i) To warehouse unsold merchandise with any jobber or dealer
who sells products of the Industry when such arrangement is a subter-
fuge for consignments or constitutes a rebate. Every manufacturer
who has such warehoused stocks must report same to the Colde
Authority. However, where merchandise is warehoused with jobbers
or dealers not in violation of the above the manufacturer shall not
pay a warehousing fee for such service in excess of public warehouiis
(j) To sell the products of the Industry through brokers, excepting
on the basis of 1%' commission.
(k) To make any sales at prices lower or on terms and conditions
more favorable than those specified in his price schedules then in
effect, filed in accordance with Article VI.
(1) Agricultural sulphur distributors and jobbers shall be classified
under the supervision of the Code Authority in accordance with the
definitions given in Article II and after being so classified the terms
and conditions of all sales to such distributors and jobbers shall be
in accordance with the price schedules required by the provisions of
Article VI. Final determination of the propriety of the classifica-
tion of any agricultural sulphur distributor and or jobber shall rest
with the Code Authority subject to the disapproval of the Adminis-
trator as provided in Section 7 of Article IV.
(m) No sales or shipments of agricultural sulphur shall be made
unless all bags, barrels, or other containers are labeled or branded
according to the Federal Insecticide A-t of 1910 as amended, and in
addition all ground agricultural sulphurs or prepared sulphurs, ex-
cept when sold as an insecticide in Florida, shall be marked or
labeled to show fineness of elemental sulphurs contained therein,
except that any manufacturer may first dispose" of all stocks of mer-
chandise and containers now on hand and not so marked or
(n) Sizes of packages for the products of the Industry shall be
restricted to those shown on the published price lists. Where pack-
ages for the Industry are covered by the specifications of the Inter-
state Commerce Commission regulations, only such packages shall be
supplied regardless of the method of delivery and no allowances
shall be made for the return of non-returnable packages as defined
in the Poisonous Articles Sections of the Interstate Commerce
(o) On and after the effective date, all terms granted shall not
exceed 1% for cash in ten lays net thirty days, except that upon
notice to the Code Authority the discount date for running accounts
may be extended to the tenth day of the month following purchase
to customers who regularly discount in the month following purchase
and provided that no discount shall be allowed after the discount
date. Discounts as referred to above are for cash payment and do
not apply to trade discounts which may be made to agricultural
sulphur distributors, brokers, jobbers, dealers and/or consumers.
(p) No post dating on the sales of products of the Industry shall
be granted except that on spring stock orders for shipment at the
convenience of the manufacturer to agricultural sulphur distributors,
jobbers, dealers and/or consumers, dating not to exceed May 1st
with regular terms may be given, provided that the Code Authority
shall make a survey of trade conditions by zones and shall authorize
and approve dating for such zones subject to the approval of the
SECTION 2. Every member of the Industry shall enter into a.
written agreement with his jobbers whereby all such jobbers agree
to file price schedules in accordance with Article VI of this Code
and abide by the following provisions of this Article V, Section 1
(b), (c), (d), (e), (f) (g), (h) (i), (j), (k), (o), (p). This
Section shall remain in iorce only for the period beginning with the
effective date of this Code and ending on the last day of the sixth
calendar month thereafter, unless such period shall be extended by
(a) Within five days after the effective date of this Code, each
member of the Industry shall file with the Secretary of the Associa-
tion his price schedules together with terms, discounts, and condi-
tions applicable thereto, showing any differentials which may be
allowed jobbers and dealers, and commissions to brokers, and such
additional copies as may be requested by the Secretary of the Asso-
ciation. Copies of all price schedules with terms, discounts and con-
ditions of sale or any other changes or additions made therein, shall
be publicly announced by each member of the Industry immediately
to all other members of the Industry through the Association. No
new schedules advancing or reducing such prices, or changes of
terms, discounts, or conditions, shall be deemed to become effective
hereunder until three days aftert.hey have been filed with the Secre-
tary, except that any such schedule filed to meet a new schedule filed
by another member of the Industry may become effective on the same
day that the competitor's becomes effective if a copy thereof is filed
with the Secretary at least 24 hours before meeting such competitor's
(b) Nothing in this section shall be construed to prevent reason-
able and fair price differentials from being allowed to anyone or any
class of purchaser on the basis of quantity purchased.
No provisions in this Code relating to prices or terms of selling,
shipping or marketing, shall apply on scales or shipments for the
export trade, unless the product hs been manufactured in the United
States and is offered for resale in the United States after being
Such provisions of this Code as are not. required to be included
therein by the Act, may, with the ap)l)roval of the Administrator, be
modified or eliminated as changes in circumstances or experience may
indicate upon application by the Code Authority, approved by a
majority of the members of the Industry affected thereby. It is con-
templated that from time to time supplementary provisi-ons of this
Code will be submitted for the approval of the Administrator to pre-
vent unfair and destructive practices and to effectuate the other
purposes and policies of Title 1 of the National Industrial Recovery
ARTICLE IX-PRICE INN(REAsES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult. of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases except such as may be required to meet individual cost
should be delayed, but when made such increases should, so far as
possible, be limited to actual additional increases in the seller's costs.
On the tenth day after the Administrator shall have approved this
supplementary Code, the provisions hereof shall constitute standards
of fair competition for the Industry and shall be binding upon all
members of the Industry.
Approved Code No. 275-Supplnemetut No. 1.
Registry No. 615-02.
SSee paragraph 2 of order approving this Code.
UNIVERSITY OF FLORIDA
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