Code of fair competition for the carbon black manufacturing industry as approved on February 8, 1934

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Title:
Code of fair competition for the carbon black manufacturing industry as approved on February 8, 1934
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Carbon black manufacturing industry
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United States -- National Recovery Administration
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Carbon-black industry -- Law and legislation -- United States   ( lcsh )
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Cover title.
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At head of title: National Recovery Administration.
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"Registry No. 709-02."
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"Approved Code No. 269."

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University of Florida
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NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION

FOR THE


CARBON BLACK

MANUFACTURING INDUSTRY


AS APPROVED ON FEBRUARY 8, 1934


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents


UNIV. OF FL LIB.
DOCUMENTS DEPT



U.S. DEPOCTORY


Approved Code No. 269


Registry No. 709-02























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.
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Approved Code No. 269


CODE OF FAIR COMPETITION
FOR THE

CARBON BLACK MANUFACTURING INDUSTRY

As Approved on February 8, 1934


ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE CARBON BLACK
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 Code of
Fair Competition for the Carbon Black Manufactu ring Industry,
and hearings 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
President, 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 Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses 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 provisions of Article V, Sections 1 and 2, 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 conditions of sale be and
they are hereby stayed pending my further order.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
Approval recommended:
K. M. SIMPson,
Division Administrator.
WASHINGTON, D.C.,
February 8, 1934.
390690 --376-35---34 (1)










REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: The proposed Code of Fair Competition for the Carbon Black
Industry was submitted to the Administrator on August 23, 1933, by
the Natural Gas Products Association, representing approximately
93% of the Industry. A hearing was conducted in Washington on
Thursday, November 16, 1933, and the Code was revised after the
hearing and is submitted in its present form for approval. All per-
sons who requested appearances were properly heard in accordance
with statutory and regulatory requirements.

LABOR PROVISIONS

Hours of work are limited to 40 hours per week in any six-week
period, 48 hours in any one week, and 8 hours in any one day with
the following exceptions: executive, managerial, and supervisory em-
ployees, travelling salesmen, watchmen at idle plants and employees
receiving over $3.,.00 per week. Emergency maintenance and repair
employees are also excepted in cases in which life or property is en-
dangered or in case of mechanical breakdowns.
Minimum wavges for common labor are as follows: 40 cents per hour
in Louisiana, 50 cents per hour in Oklahoma and Stephens County,
Texas, and 55 cents per hour elsewhere. Over 75% of the workers
are in the 55 cents minimum area. The differentials between rates
for skilled work and common labor minimums are to be equitably ad-
justed. Office workers are to receive not less than 40 cents per hour.
The usual clauses for the protection and safety of employees and em-
ployers are included.
These provisions should bring about a decided improvement in
labor conditions in the industry inasmuch as a 65-hour week and a
35 cent per hour wage were not uncommon in the early months of
this year.
EXCESS CAPACITY

A demoralized price structure has existed in the Industry for the
last. three years. According to reports of the Bureau of Mines car-
bon black has -.old below the cost of production throughout this
period. Stocks on hand at the end of 1932 amounted to 91% of sales
in 1929 and existing plant capacity will permit the annual production
of 175% of total 1929 sales. Of'71 plants now in existence only 50
were in operation at the end of 1932. This condition is due in large
part to the fact that this natural resources industry is closely re-
lated to the production of natural gasoline. In the interests of
economical use of natural gas and the orderly development of the
carbon black industry the Code Authority is given power, subject
to the approval of the Administrator, to pass upon the advisability
of increasing plant capacity at. any particular time in any particular
locality.








ECONOMIC EFFECT OF THE CODE
The Industry is comprised of about 24 concerns, having an invest-
ment in 1933 of approximately $40,000,000. The rubber industry is
the largest consumer of carbon black, and quantity consumption has
held up well during the depression, but as a result of the price
structure annual sales have fallen from about $25,000,000 in 1929
to less than $7,000,000 in 1932. Volume has picked up in 1933, but
present contracts and extraordinarily heavy stocks have held prices
down. Approximately 1,300 men are now employed in the industry.
The hours provided for in the Code have resulted in a reduction of
average hours worked from 65 in 1929 to less than 41 at the present
time. This has resulted in a 25% increase in employment, and the
present hourly rates are substantially above those paid in 1929.
The Assistant Deputy Administrator in his final report to me on
said Code having found as herein set forth and on the basis of all
the proceedings 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 interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the 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 association
is an industrial association truly representative of the aforesaid
Industry; and that said association imposes no inequitable restric-
tions 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.
I have, therefore, approved this Code.
Respectfully,
HUGH S. JOHNSON,
Administrator.
FEBRUARY 8, 1934.












CODE OF FAIR COMPETITION FOR THE CARBON BLACK
MANUFACTURING INDUSTRY
ARTICLE I-PURPOSE
To effectuate the policies of Title I of the National Industrial Re-
covery Act, the following provisions are submitted as a Code of Fair
Competition for the Carbon Black Manufacturing Industry, and
upon approval by the President, shall be the standards of fair com-
petition for this industry, and shall be binding upon every member
thereof.
ARTICLE II-DEFINITIONS
SECTION 1. The term carbon black includes any black pigments
produced in whole or in part from natural gas, casing-head gas, or
residue gas by the impinging of a flame upon a channel, disk, or
plate.
SEC. 2. The term member of the industry as used herein includes
all those engaged in the manufacture of carbon black, either as em-
ployers or on their own behalf.
SEC. 3. The term industry as used herein includes the manu-
facture and original sale of carbon black.
SEC. 4. The term employee as used herein includes all those en-
gaged in the industry however compensated, except a member of the
industry.
SEC. 5. The term employer as used herein includes any member
of the industry by whom any such employee is compensated or
employed.
SEC. 6. The terms "President". "Act", and "Administrator", as
used herein mean the President of the United States, Title I of the
National Industrial Recovery Act, and the Administrator for In-
dustrial Recovery, respectively.

ARTICLE III-LABOR

SECTION 1. From and after the effective date no employee (except
executive, managerial, and supervisory employees, traveling sales-
men, watchmen at idle plants and employees receiving over $35.00
per week) shall be employed for more than an average of 40 hours per
week in any six-week period. No employee shall be employed for
more than 48 hours in any one week, nor more than 8 hours in any
one day, except above mentioned classes and except maintenance and
repair employees in case of emergencies when life or property is
endangered, or in case of mechanical breakdowns.
SEC. 2. The following minimum wages are hereby established from
and after the effective date: The minimum wage for common labor
shall be forty cents per hour in Louisiana, fifty cents per hour in








Oklahoma and Stephens County, Texas, and fifty-five cents per hour
in all other portions of the United States. For clerical, laboratory,
and office employees not less than forty cents per hour. The differ-
entials between the rates for skilled jobs and the minimunmsestablished
in this Code for common labor shall be equitably adjusted. Overtime
work of maintenance and repair employees shall be compensated at
the rate of time and one half. It is agreed that this paragraph es-
tablishes a guaranteed minimum rate of pay, regardless of whether
the employee is compensated on the basis of a time rate or on a piece-
work basis.
SEC. 3. No person under sixteen (16) years of age shall be em-
ployed in the Industry. No person under eighteen (18) years of
age shall be employed at operations or occupations which are haz-
ardous in nature or dangerous to health. The Code Authority
shall submit to the Administrator before March 31, 1934, 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 per-
mits showing that the employee is of the required age.
SEc. 4. No employer, for the purpose of defeating the purposes
or provisions of the Act or of this Code, shall reclassify employees
or duties of occupations performed or engage in any other s-ubterfuge.
SEC. 5. Every employer shall make reasonable provision for the
safety and health of his employees at the place and during the hours
of their employment.
SEo. 6. No provision in this Code shall supersede any State or
Federal law which imposes on employers more stringent requirements
as to age of employees, wages, hours of work, or as to safety, health,
sanitary, or general working conditions, or insurance, or fire pro-
tection, than are imposed by this Code.
SEc. 7. All employers shall post complete copies of the labor pro-
visions of this Code in conspicuous places accessible to employees.
SEc. 8. From and after said effective date, no Member of the In-
dustry shall charge a rental of more than twelve dollars per month in
Louisiana or sixteen dollars per month in any other part of the
United States to any employee for any one family house, including
water, gas, and such other services as are customarily furnished by
the Member of the Industry without extra charge in connection
therewith, nor engage in any subterfuge for the purpose of defeating
the intent of this provision. No employee shall be required to lease
or occupy a house owned or controlled by any Member of the
Industry.
SEc. 9. (a) Employees in the Industry shall have the right to
organize and bargain collectively through representatives of their
own choosing, and shall be free from interference, restraint, or coer-
cion of employers of labor, or their agents, in the designation of such
representatives or in self-organization or in other concerted activities
for the purpose of collective bargaining or other mutual aid or pro-
tection.
(b) No employee in the Industry and no one seeking employment
therein shall be required 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.
(c) Employers of labor in the Industry shall comply with the
maximum hours of labor, minimum rates of pay, and other conditions
of employment approved or prescribed by the President.
ARTICLE IV-PRODUCTION
SECTION 1. Each Member of the Industry shall, insofar as is
possible without infringing obligations existing on November 28th,
1933, for the purchase of gas, so regulate its current production of
all ordinary grades of carbon black as to prevent the same from
exceeding its current deliveries. In case at the end of any period
of six calendar months the quantity of such black held in storage
by any Member of the Industry shall have increased (except through
purchase of black or unavoidable purchase of gas) such member
shall reduce its storage by the same amount during the next six cal-
endar months, and failure so to do shall be deemed an unfair method
of competition within the meaning of the Act. Provided, however,
that in case any Member of the Industry is prevented from regu-
lating its production to the full extent herein required by reason of
such existing obligations for the purchase of gas, and this results
in an unavoidable increase in his inventory, the other members shall
not be compelled to restrict their inventories below a percentage of
increase equal to that of such member.
SEc. 2. The present capacity of carbon black factories of the
United States, as a whole, is in excess of present or any prospective
needs. Therefore, any material increase in the plant capacity of the
Industry shall be made only after approval of such increase by the
Code Authority, whose decision shall be subject to the approval of
the Administrator; provided, however, that such approval shall not
be construed to supersede or modify in any way State statutes or
regulations. The production of carbon black by any authorized new
factory capacity for the first six months that it shall be in operation
shall not be subject to the provisions of the first Section of this
Article.
ARTICLE V-PRICES
SECTION 1. Each Member of the Industry shall, on such date as the
Code Authority shall designate, publish and file with the Secretary
of said Code Authority a statement of the minimum price to cus-
tomers thereafter to be quoted by it for the standard grades of carbon
black sold by it. No Member of the Industry shall make or quote
any price lower than that filed until five days after filing with the
Secretary of the Code Authority a new minimum price; nor shall any
Member of the Industry or its agent offer or grant any terms, in-
ducements, rebates, or conditions having the effect of reducing the
cost to the customer below its minimum price at the time in effect
hereunder; nor shall any Member of the Industry or its agent until
such five days shall have elapsed suggest, intimate, or promise to a
customer at any time a future price below such minimum price. The
Secretary shall immediately notify each Member of the Industry by







telegraph and by letter of all initial minimum prices filed and of all
price changes thereafter made by any such Member.1
SEc. 2. If the initial minimum price filed by any Member of the
Industry be lower than that filed by another Member, such other
Member shall have the right to reduce its price to the lower rate by
notification to the Secretary of the Code Authority effective imme-
diately. And upon any existing price being reduced by any Member
of the Industry, upon five days'notice as hereinbefore provided, any
other Member shall' be at liberty to adopt said new minimum price
as its own as soon as the same shall become effective, and such Mem-
ber shall give the Secretary written notice of its adoption of said new
minimum price at or before the time such action is taken. The fore-
going provisions of this Article are subject to the following
exceptions:
(a) In making sales of carbon black to another concern which is
bound by the provisions of this Code, a Member of the Industry may
allow any discount it may see fit.
(b) No Member of the Industry shall sell any carbon black as
substandard without first giving the Code Authority at least five
days' notice thereof, and giving the Code Authority an opportunity
to investigate the true grade of the carbon black so to be sold. No
carbon black found by the Code Authority not to be substandard
shall be sold by a Member of the Industry at a price less than the
price of said Member on file for standard carbon black.2
SEC. 3. Any violation of this Article shall be deemed an unfair
competitive practice.
SEC. 4. The provisions of this Article shall not apply to contracts
made prior to the approval of this Code. True copies thereof shall
be filed with the Code Authority within ten days after the effective
date of the Code.

ARTICLE VI-ORGANIZATION, POWERS, AND DUTIES OF THE CODE
ATHORITrrY

SECTION 1. A Code Authority for the administration of this Code
is hereby constituted consisting of one member to be appointed by
each member of the Industry who is or shall become a member of the
National Gas Products Association, and in addition thereto there
may be one or more members, without vote, and without expense to
the Industry, to be appointed by the Administrator. The first and
succeeding terms of office of any member appointed by the Adminis-
trator shall be for a term of six months from the date of appointment.
SEC. 2. The National Gas Products Association or any other asso-
ciation directly or indirectly participating in the selection or activi-
ties of the Code Authority shall, (1), impose no inequitable
restrictions on membership, and, (2), submit to the Administrator
true copies of its Articles of Association, bylaws, regulations, and
any amendments when made thereto, together with such other infor-
mation as to membership, organization, and activities as the Ad-
ministrator may deem necessary to effectuate the purposes of the
Act.
See paragraph 2 of Order approving this Code.
2 See paragraph 2 of Order approving this Code.







SEC. 3. 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 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
constitution of the Code Authority.
SEC. 4. The expenses of administration of the Code shall be deter-
mined and assessed against all members of the Association by the
Code Authority in an equitable manner, subject to review and modi-
fication by the Administrator.
SEc. 5. The Code Authority shall have the following powers and
duties, the exercise of which shall be reported to the Administrator
and shall be subject to his right to review and to disapprove any
action taken by the Code Authority:
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisions of
the Act.
(b) To adopt Bylaws, rules, and regulations for its government
and procedure and for the administration and enforcement of the
Code.
(c) To obtain from members of the Industry such information and
reports as are required for the administration of the Code and to
provide for submission by members of such information and reports
as the Administrator may deem necessary for the purposes recited
in Section 3 (a) of the Act, which information and reports shall
be submitted by members to such administrative and/or govern-
ment agencies as the Administrator 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. The Code Authority may also gather such other statis-
tics as it may deem advisable and make and publish from time to
time such forecasts of future demand as it may see fit. No individual
reports shall be disclosed to any other member of the Industry
or any other party except to such governmental agencies as may be
directed by the Administrator.
(d) To use such trade associations and other agencies, employ such
experts, and/or agents as it deems proper for the carrying out of
any of its activities provided for herein, provided that nothing
herein shall relieve the Code Authority of its duties or responsi-
bilities 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 coor-
dination of the administration of this Code with such other codes,
if any, as may be related to the Industry.
(f) To secure from members of the Association an equitable and
proportionate payment of the reasonable expenses of maintaining
the Code Authority and its activities.
(g) To cooperate with the Adniinistrator in regulating the use
of any N.R.A. insignia solely by those members of the Industry
who have assented to, and are complying with, this Code.







(h) To recommend to the Administrator further fair trade prac-
tice provisions to govern members of the industry in their relations
with each other or with other industries and to recommend to the
Administrator measures, for industrial planning, including stabili-
zation of employment.
(i) The Code Authority shall have the right in its rules or
regulations, to determine and provide for the following:
(1) To fix the term of office of the members of the Code Authority
selected by members of the Industry which in the absence of other
provisions shall be from the effective date of this Code and until
June 15, 1935.
(2) To provide for the filling of vacancies in the membership of
the Code Authority which are appointed by Members of the Indus-
try, which in the absence of other provisions shall be filled by the
designation of the Member of the Industry who designated the
original Member. In the event of the failure or refusal of such
Member of the Industry to appoint a new Member of the Code
Authority within thirty days after such vacancy shall occur, the
Code Authority may in its discretion fill such vacancy.
(3) From time to time to determine the number of members of
the Code Authority requisite to constitute a quorumm. which in no
event shall be less than a majority thereof.
(4) To adopt its own rules of procedure, fix its own meeting dates,
and place or places of meeting, and elect its own chairman and its
secretary, who need not be members of the Code Authority.
(5) To provide that all actions of the Code Authority except such
as require unanimous vote shall be either (a) by a majority vote of
the members present at a meeting at which a quorum shall be present
or (b) without a meeting on any question submitted in writing to the
members of the Code Authority by written vote of a majority of the
whole number of the members thereof.
(6) To provide that members of the Code Authority may desig-
nate alternates to act for them at meetings of the Code Authority.
(j) From time to time by unanimous vote of those present to make
such recommendations as it shall deem consistent with and in fur-
therance of the provisions of this Code or for the modification or
amendment thereof.
(k) Upon complaint of interested parties, or upon its own initia-
tive, to inquire into and investigate the operation of this Code and
any violations thereof and to aid the Administrator in the adminis-
tration of this Code and the Act.
ARTICLE VII--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 regula-
tion issued under said Act.
SEC. 2. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes in circum-
stances, such modifications to be based upon application to the Ad-
ministrator and such notice and hearing as he shall specify, and to
become effective on approval of the President.




tIrIlVERSITY OF FlORIDA
.ll III I II't 11111'111 1111111 111 111111 111 1 1 111
10 3 1262 08850 2611

ARTICLE VIII-MONOPOLIES
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrim-
inate against small enterprises.
ARTICLE IX-EFFECTIVE DATE
This Code shall become effective on the second Monday, which is
not a holiday, after its approval by the President.
Approved Code No. 269.
Registry No. 709-02.




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