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UNIVERSITY OF FLORIDA
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3 1262 08482 9851
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
OCEAN PEARL BUTTON
AND NOVELTY MANUFACTURERS
AS SUBMITTED ON AUGUST 14, 1933
REGISTRY No. 1009-1-03
The Code for the
Ocean Pearl Button and Novelty Manufacturers Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
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OCEAN PEARL BUTTON AND NOVELTY MFGRS. ASS'N.
This Code is adopted pursuant to title I of the National Industrial
Recovery Act and its purpose is to effectuate the policy of the said
title of the said act insofar as it is applicable to the industry.
(a) "Ocean Pearl" as used herein is defined to include all types
of shells gathered in or raised from salt water.
(b) "Ocean pearl products" as used herein is defined to include
all articles of commerce manufactured from ocean pearl shells, spe-
cifically including such articles as buttons, slides, buckles, novelties,
(c) Person as used herein is defined to include any person,
firm, partnership, or corporation engaged in the manufacture and
sale of ocean-pearl products in interstate or foreign commerce as
defined in section 7 (d) of the National Industrial Recovery Act.
(d) "Effective date" as used herein is defined to be the tenth
day following approval of this Code by the President.
(e) "Association as used herein is defined to be the Ocean Pearl
Button and Novelty Manufacturers' Association.
(f) "Executive Committee" as used herein is defined to be the
executive committee of the Ocean Pearl Button and Novelty Manu-
(g) President" as used herein is defined to be the President
of the United States.
(a) Any person in the industry who shall comply with the provi-
sions of the Code shall be entitled to participate in its benefits upon
the terms and conditions set forth therein and upon the payment as
a Code fee of his proportionate share of the amounts necessary to
effectuate the declared purposes thereof and by membership in the
(b) The provisions of this Code shall not be so interpreted or
administered as to eliminate or oppress small enterprises or to
discriminate against them.
(c) This Code is not designed to promote monopolies and shall
not be availed of for that purpose.
(a) The executive committee of the association or such successor
committee as may hereafter be constituted by the action of the said
association is established and empowered to act as the Emergency
National Committee of the Ocean Pearl Industry. The powers and
duties of such committee shall be those of a general planning and
coordinating agency for the industry.
(b) It shall gather such statistics as it may deem necessary, and it
may call upon and require information and reports, which shall be
subject to checking for the purpose of verification by an examination
of the books and accounts and records of the person submitting the
same by any person designated by the committee and shall be so
checked by such person, if the committee shall require it, to enable
it not only to make the findings required by this code but, when the
restrictions herein provided are in force, to know the extent, to which
such restrictions are operative and who are violating the rules and
regulations and, if upon any such examination any such informa-
tion shall be shown to have been made willfully incorrect in
any material respect, the cost of such examination shall be paid by
the member of the code which furnished such information.
(c) It shall issue and enforce such rules, regulations, and interpre-
tations, including trade practices; impose upon persons subject to
this code such restrictions as may be necessary to effectuate the pur-
poses and enforce the provisions of this code; and it shall aid the
President in the administration of this code and of the National
Industrial Recovery Act.
On and after the effective date no person shall operate on a sched-
ule of hours of labor for his employees (with the exception of execu-
tives, engineers, repair-shop crews, office and supervisory staff, stock
clerks, shipping clerks, and watchmen) in excess of forty hours in
any one week; nor shall any person operate any productive machine,
on ocean pearl products, in excess of forty hours in any one week,
except, however, that in the production of those articles of the in-
dustry which are seasonal, because of the style or pattern factor, a
person may operate a productive machine in excess of forty hours in
any one week, but not in any event to exceed an aggregate of 2,080
machine hours in any one year.
(a) Persons under the age of sixteen years shall not be employed
in the industry.
(b) The minimum rate of pay for employees shall be at the rate of
thirty cents per hour and the minimum rate of pay for employees on
piecework shall be equal in fact to such minimum, rate.
(c) No process (in whole or in part) in the production of the
products of the industry shall be performed directly or indirectly
outside the premises of a factory immediately controlled by any per-
son unless such process be performed wholly in compliance with the
minimum wage, maximum hours, and other provisions of this code.
(d) During the period of apprenticeship, which shall not, how-
ever, exceed a maximum of six months, apprentices and learners
shall be excepted from such rates of pay, but such learners and ap-
prentices shall not at any time exceed in number a maximum of 20%
of the number of productive workers who come within the above
schedule of minimum rates of pay, except in such case where a person
actually moves productive machinery from one locality to another,
but in no event shall the period of apprenticeship exceed a maximum
of six months.
(a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing and shall be
free from interference, restraint, or coercion of employers of labor,
or their agents, in the designation of such representatives or in self-
organization or in other! concerted activities for the purpose of col-
lective bargaining or other mutual aid or protection (Sec. 7(a) 1 of
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization
of his own choosing (Sec. 7 (a) 2 of N.I.R.A.).
(c) All persons shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President (Sec. 7 (a) 3 of N.I.R.A.).
(d) Nothing contained herein is to prevent the selection, reten-
tion, and advancement of employees on the basis of their individual
merit, without regard to their affiliation with any labor organization.
(a) To effectuate the purposes of this code of fair competition in
respect of minimum wages of labor and maximum hours of employ-
ment, each person shall provide the Executive Committee or any
agent properly designated by it with a true statement of his costs
of production for each class of ocean-pearl products, in such form
and at such times as the Committee may prescribe.
(b) From such statements of costs the Executive Committee shall
establish a weighted average cost of production for each class of
such ocean-pearl products, and sale of any such ocean-pearl products
by any person below such cost shall constitute unfair competition
and a violation of this code.
(c) Exceptions shall be provided to the extent necessary to pre-
vent unfair operation of the foregoing provisions in exceptional
(a) No person shall make a sale of any ocean-pearl product on
terms other than 1% 10 days, net 30 days, E.O.M. plus 6% per
annum thereafter, which are defined as follows: On invoices dated
from the 1st to the 24th, inclusive, in any month, a cash discount of
1% may be allowed on payment of such invoices on or before the
10th of the month following. No cash discount shall be allowed
on any invoices paid after such tenth of the month.
(b) Invoices not paid on or before the 30th of any month following
the month of invoice date shall be subject to interest at the rate of
6% per year from such 30th day.
(c) Invoices shall be dated as of the day of shipment except that
shipments made between the 25th and the last day of any month may
be given dating as of the first of the month following.
(d) When made by mail the day of payment shall be the day of
(e) A person may make free delivery from any place of shipment
to the Greater City of New York and to the City of Philadelphia,
but delivery to all other points shall be at the expense of the customer
from such person's usual places of shipment not to exceed two in
No person subject to this code shall make any contract of sale
of any ocean-pearl product by the terms of which the shipment of
such product is not required to be completed within three months of
the making of such contract.
(b) A sale made or any act performed by any person subject to
this code indirectly through any affiliated company of such person
shall be deemed a sale made or an act performed by such person.
(a) No person subject to this code shall make any oral or written
contract for the sale of ocean-pearl products containing price pro-
tection clauses either as to decline or increase in price of such
(b) No person shall promise or make to any purchaser of any
ocean-pearl product, or to any officer, agent, representative, or em-
ployee thereof, any gratuity, gift, remuneration, or any commission
or part thereof, direly or indirectly.
(c) No person shall make any sale or contract of sale of any
ocean-pearl product under any description which does not describe
such product in terms customarily used in the industry.
The executive committee shall secure current information con-
cerning the competition in domestic markets of imported ocean-pearl
products and if it shall find that such products are being imported
into the United States in substantial quantities or in increasing ratio
to domestic production or under such conditions to render ineffective,
or seriously to endanger the maintenance of this code, it shall com-
plain to the President pursuant to the provisions of section 3 (e)
of the National Industrial Recovery Act and petition for suitable
restrictions on the importation of such ocean-pearl products.
The following specified practices are hereby held to be unbusiness-
like, unethical, discriminatory among customers, and violations of
the letter and the spirit of said act and said code and, if engaged in,
will be dealt with as provided in Article Eighteen:
(a) Variations from the open and publicly announced prices and
terms, including (but without limiting the generality of this clause)
the following: Special allowance by way of secret rebates, discounts,
brokerage, storage, or advertising; variations from the openly an-
nounced grade of package differentials; delayed billings; full or par-
tial discounts in cases of delayed payment; and any other allowances
by any name or of any nature.
(b) Acceptances of orders at old prices following the announce-
ment of price changes.
(c) Unannounced concessions in price based on quality of ma-
terial not actually substandard.
(d) Making combination sales whereby an order is obtained or
sale made for a commodity on conditions or upon promise or under-
standing that any other commodity will be sold or delivered to the
buyer, directly or indirectly, at a price or at prices under the pre-
vailing market for either or any of the commodities involved.
(e) Payments of brokerage when any part thereof enures to the
benefit of the purchaser.
(f) Payment for storage in customer's warehouses on goods pur-
chased by such customer.
(g) Consignment stocks made to other than accredited agents.
The executive committee shall provide a standard form of sales
contract for the use of persons subject to this code.
Subject to Article Sixteen, in order to effectuate the purposes of the
National Industrial Recovery Act, supplementary provisions and, or
amendments of this code may be submitted from time to time for
the approval of the President.
This code and all the provisions thereof are subject to cancellation
or modification, as the President may determine from time to time
as prescribed in Section 10 (b) of the Act.
If any provision of this code is declared invalid or unenforceable,
the remaining provisions shall nevertheless continue in full force and
effect, the same as if they had been separately presented for approval
and approved by the President.
In the event that any person subject to this code shall knowingly
or wilfully engage in any practice or practices which in the judg-
ment of the association are a violation of the N.I.R.A. and/or this
code, the same shall be reported in the necessary detail to the Ad-
ministrator of said act for due process of law as provided in said act.
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