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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON AUGUST 27, 1934
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents
Approved Code No. 510
Registry No. 1208-07
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. 510
CODE OF FAIR COMPETITION
ASSEMBLED WATCH INDUSTRY
As Approved on August 27, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE ASSEMBLED WATCH
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 Assembled Watch Industry, and hearing
having been duly held thereon and the annexed report on said Code,
containing findings with respect thereto, having been duly 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 Io. 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, how-
ever, that the following changes be and the same hereby are made:
(1) That Section 9, Article VIII be deleted and in lieu thereof
the following paragraph be, and it is hereby inserted:
No member of the Industry shall permit the return of any watch
or watch movement after 60 days from the date of invoice, except
for defects of material or workmanship."
(2) That. Section 14, Article VIII be amended to read as follows:
"No member of the Industry shall attempt to induce the breach
of an existing contract between a competitor and his customer or
source of suppIly; nor shall any such member interfere with or ob-
struct the performance of such contractual duties or services."
(3) That Section 2, Article III be amended to read as follows:
"No member of the Industry shall employ, or cause to be em-
ployed, office or clerical employees for more than forty (40) hours
per week, averaged over any five (5) weeks' period, provided that
82943--- 1041-132--34 (21)
no such employee shall be employed more than forty-eight (48)
hours in any one week."
and provided further that within ninety days I may direct that
there be a further hearing on such of the provisions of said Code
as I may designate, and that any order which I may make after
such hearing shall have the effect of a condition on the approval of
HUGH S. JOHNSON,
Administrator for ilaus.trial Recovery.
JOSEPH F. BATTLE,
Acting Division Admninistrator.
August 27, 1934
REPORT TO THE PRESIDENT
The White Hou.Ne.
Smi: This is a report on the Code of Fair Competition for the
Assembled Watch Industry, the hearing having been conducted in
Washington on March 15, 1934, in accordance with the provisions of
Title I of the National Industrial Recovery Act. The sponsoring
association claims to represent 50% of the members of the Industry,
whose members do 80% of the total volume of business in the
HOURS AND WAGES
This Code provides that no employee shall work more than forty
(40) hours in any one (1) week nor more than eight (8) hours in
any twenty-four (24) hour period nor more than six (6) days in
any seven (7) day period, except during peak periods. During the
months of September, October, November and December employees
may be permitted to work not to exceed more than forty-eight (48)
hours in any one (1) week provided further, that such employees
shall receive at least one and one-half (11/2) times their respective
rates of pay for overtime in excess of forty (40) hours in any one
(1) week. Office and clerical employees may work not more than
forty (.40) hours per week averaged over a period of three (3)
months, provided further that such employees shall not be employed
more than forty-eight (48) hours in any ,one (1) week and that no
hours worked by such employees shall exceed five hundred twenty
(520) hours in any thirteen (13) weeks period. Exception is made
to those in a managerial or executive capacity who earn thirty-five
($35.00) dollars or more per week, and to traveling salesmen. The
minimum rate of pay for all employees is forty (400) cents per
hour except for learners and office boys and girls, who shall receive
80% of the minimum. Office and clerical employees shall be paid
not less than fourteen ($14.00) dollars per week.
The Deputy Administrator in his final report to me on said Code,
having found as herein set forth and on the basis of aA the pro-
ceedings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
p)cses 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
industry for the purpose of cooperative action among trade groups,
by inducing and maintaining united action of labor and manage-
ment under adequate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be. tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing 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; it is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant asso-
ciation is an industrial association truly representative of the afore-
said Industry; and that said association imposes 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
For these reasons, I have approved this Code.
HUGH S. JOFrNSON,
AUGUST 27, 1934.
CODE OF FAIR COMPETITION FOR THE ASSEMBLED
SECTION 1. To effectuate the policies of Title I of the National
Industrial Recovery Act, this Code is established as a Code of Fair
Competition for the Assembled Watch Industry, and shall be the
standard of fair competition for such industry and shall be bind-
ing upon every member thereof.
SECTION 1. The term industry ", as used herein, includes all
enterprises engaged in the importing and/or assembling of imported
watches, watch cases, watch movements or parts thereof; also pur-
chasers for resale of imported watches and/or movements which
may be confiscated and offered for sale by the United States
SECTION 2. The term member of the industry" includes, but
without limitation, any individual, partnership, association, cor-
poration, or other form of enterprise engaged in the industry, either
as an employer or on his or its own behalf.
SECTION 3. The term employee as used herein includes any and
all persons engaged in the industry, however compensated, except a
member of the industry.
SECTION 4. The term employer as used herein includes any one
by whom such employee is compensated or employed.
SECTION 5. The terms President ", "Act" and "Administrator"
as used herein mean respectively, the President of the United States,
the National Industrial Recovery Act and the Administrator of
Title I of said Act.
SECTION 1. No employee shall be permitted to work more than
forty (40) hours in any one (1) week or eight (8) hours in any
twenty-four (24) hour period, except as hereinafter provided. No
employee shall be permitted to work more than six (6) days in any
seven (7) day period. A normal work day shall not exceed eight (8)
hours. During the seasonal peak periods, during the months of Sep-
tember, October, November and December, employees may be per-
mitted to work not to exceed forty-eight (48) hours in any one (1)
week only when the Code Authority has granted such permission,
but provided further, that such employees shall receive at least one
and one-half (1.) times their respective rates of pay for overtime
in excess of forty (40) hours in any one (1) week, or 8 hours in
any 24 hour period.
SECTION 2. No member of the industry shall employ, or cause to
be employed, office or clerical employees for more than forty (40)
hours per week, averaged over any consecutive three (3) months'
period, provided that no such employee shall be employed more
than forty-eight (4S) hours in any one week; and provided further
that the total number of hours worked by such employee shall not
exceed five hundred and twenty (520) hours in any thirteen (13)
SECTION 3. The provisions of this Article shall not apply to travel-
ing salesmen or to employees engaged in emergency maintenance or
emergency repair work, or to persons employed in a managerial or
executive or supervisory or examining capacity who earn regularly
thirty-five ($35.00) dollars per week or more; provided, however,
that employees engaged in emergency maintenance and emergency
repair work shall be paid at one and one-half (11.4) times their
normal hourly rate for all hours worked in excess of forty (40)
hours per week and eight (8) hours per day.
SECTION 4. No employer shall knowingly permit any employee to
work for any time which, when added to the time spent at work for
another employer or employers, exceeds the maximum permitted
SECTION 5. Watchmen may be permitted to work a maximum of
fifty-six (56) hours per week, but no watchman shall be employed
more than six (6) days in any seven (7) day period.
SECTION 6. Members or officers of members of the industry when
doing productive work shall be restricted to the same hours as
SECTION 1. No employee, except as otherwise provided, shall be
paid less than forty (40) cents per hour.
SECTION 2. Office and clerical employees shall be paid not less
than fourteen ($14.00) dollars per week.
SECTION 3. (a) Persons learning an occupation shall be paid not
less than eighty per cent (80%) of the minimum wage which prevails
in such occupation, but in no case less than eighty per cent (80%)
of the minimum prescribed in this Code. Learners shall not be
employed as such for a period in excess of twelve (12) weeks irre-
spective of whether they are or have been employed by one or more
(b) Office boys and girls shall be paid at not less than eighty
per cent (80%) of the minimum rate as herein provided. (Office
boys and girls and learners shall not at any time exceed five per cent
(5%) of the total number of employees, provided, however, that
each employer shall be entitled to at least one.)
SECTION 4. The minimum rate of pay shall be paid irrespective
of whether an employee is actually compensated on a time rate,
piece-work, or other basis.
SECTION 5. Equitable adjustment of compensation of employees
receiving more than the minimum rates of pay shall be made by
all employers who have not heretofore made such adjustments, and
all employers shall within sixty (60) days after the effective date
1Amended. See paragraph 2 (8) of order approving this Code.
of this Code, report in full to the Code Authority, for submission
to the Administrator, the action taken in pursuance of this provi-
sion, provided, however, that in no event shall hourly, weekly or
piece-work rates be reduced.
SECTION 6. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
SECTION 7. A person whose earning capacity is limited because
of age, physical or mental handicap, or other infirmity, may be
employed on light work at a wage below the minimum established
by this Code, if the employer obtains from the state authority,
designated by the United States Department of Labor, a certificate
authorizing such person's employment at such wages and for such
hours as shall be stated in the certificate. Such authority shall be
guided by the instructions of the United States Department of Labor
in issuing certificates to such persons. Each employer shall file
monthly with the Code Authority a list of all such persons em-
ployed by him, showing the wages paid to, and the maximum hours
of work for such employee.
SECTION 8. Wages shall be paid at least semimonthly in lawful
currency or by negotiable check therefore payable on demand. These
wages shall be exempt from any payment, pensions, insurance or
sick benefits, other than those voluntarily paid by the wage earner or
required by law.
ARTICLE V--GENERAL LABOR PROVISIONS
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 haz-
ardous in nature or dangerous to health. The Code Authority shall
submit to the Administrator within sixty (60) days after the effective
date, a. list of such operations or occupations. In any State a mem-
ber of the industry shall be deemed to have complied with this pro-
vision as to age if he shall have on file a certificate or permit duly
signed by the Authority in such State empowered to issue employ-
n.ent or age certificates or permits showing that the employee is of
the required age.
PROVISIONS FROM THE ACT
SECTION 2. It is hereby provided:
(a) That 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 representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(b) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union
or to refrain from joining, organizing, or assisting a labor organiza-
tion of his own choosing, and
(c) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
SECTIOx 3. Members of the industry shall not reclassify employees
or duties of occupations performed, or engage in any other subter-
fuge for the purpose of defeating the purposes or provisions of the
Act or of this Code.
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 within six (6) months after the
effective date of this Code.
SETI.oN 5. No provisions in this Code shall supersede any State
or Federal law which imposes on members of the industry 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 protection, than are imposed by this Code.
SECTION 6. All members of the industry shall post and keep posted
complete copies of the wage and hour and general labor provisions
of this Code in conspicuous places accessible to employees. Every
member in the industry shall comply with all the rules and regula-
tions relative to the posting of the provisions of the Code of Fair
Competition which may from time to time be prescribed by the
Admin i strator.
SECTION 7. (1) A person may be permitted to engage in homework
at the same rate of wages as is paid for the same type of work per-
formed in the factory or other regular place of business if a certifi-
cate is obtained from the State authority or other officer designated
by the United States Department of Labor, such certificate to be
granted in accordance with instructions issued by the United States
Department of Labor, provided:
(a) Such person is physically incapacitated for work in a factory
or other regular place of business and is free froin any contagious
(b) Such person is unable to leave home because his or her services
are absolutely essential for attendance on a person who is bedridden
or an invalid and both such persons are free from any contagious
(2) Any employer engaging such a person shall keep such cer-
tificate on file and shall file with the Code Authority for the trade
or industry or subdivision thereof concerned the name and address
of each worker so certificated.
SECTION 8. No employer shall dismiss or demote any employee
for making a complaint or giving evidence with respect to an
alleged violation of the provisions of this Code.
ARTICLE VI--ORGANIZATION, POWERS, AND DUTIES OF THE CODE
ORGANIZATION AND CONSTITUTION
SEciONr 1. A Code Authority is hereby established to cooperate
with the Administrator of this Code and shall consist of seven (7)
members of the industry elected through a fair method of selection
approved by the Administrator.
SECroON 2. Vacancies in the personnel of the Code Authority
selected by the industry shall be filled by the remaining members
of the Code Authority subject to the approval of the Administrator.
SECTION 3. In addition to membership as above provided, there
may be three (3) members, without vote, to be known as Adminis-
tration members, to be appointed by the Administrator to serve for
such terms as he may specify, without. compensation from the
SECTION 4. 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 restriction 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, organiza-
tion, and activities as the Administrator may deem necessary to
effectuate the purposes of the Act.
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
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 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 em-
ployee 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 wilful malfeasance or non-
SECTION 7. If the Administrator shall at any time determine that
any action of the Code Authority or any agency thereof may be
unfair or unjust. or contrary to the public interest, the Administra-
tor may require that such action be suspended pending final action,
in order to afford an opportunity for investigation of the merits of
such action and further consideration by such Code Authority or
agency. Final action 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.
SECTION 8. The Assembled Watch Industry Code Authority may
incorporate under the laws of any State of the United States or of
the District of Columbia, or may assume or adopt such existing
corporate form under any of such laws as it may deem appropriate
for the proper performance, as and from the effective date, of its
activities, powers and duties hereunder, such corporation or cor-
porate form to be not for profit and to be known as the Assembled
Watch Industry Code Authority, Incorporated; provided that the
powers, duties, objects and purposes of the said corporation shall,
to the satisfaction of the Administrator, be limited to the powers,
duties, objects and purposes of the Assembled Watch Industry Code
Authority as provided in this Code; provided further, that the
existence of the s-.id corporation shall be during the term of the Code;
and provided, further, that the Code Authority shall submit to the
Administrator, for his approval, its proposed Certificate of Incor-
poration and proposed By-laws, and no amendments of either shall
be made without the like prior approval of the Administrator;
and provided, further, that the Code Authority shall submit, with
its proposed Certificate of Incorporation and Bylaws, the written
opinion of an attorney-at-law qualified in and conversant with the
laws of the jurisdiction in which the Code Authority seeks to be
incorporated, as to the nature and extent of the jurisdiction, powers
and authorities exercisable by the State in question and its agencies
over the activities of the Code Authority as a corporation, sup-
porting such opinion by citation of relevant authorities and sup-
plementing the same with a table, certified to be complete, of all
laws, statutes and other regulatory provisions governing corpora-
tions created pursuant to the laws under which the Code Authority
seeks to be incorporated.
If at any time, the Administrator shall determine that the cor-
porate status assumed by the Code Authority is interfering with the
proper exercise of its powers and duties under this Code, or with
the effectuation of the policies or purposes of the Act, he may,
after such notice and hearing as he may deem necessary, require
an appropriate modification of the structure of the Corporation,
(if consistent with the law of the State of Incorporation) the sub-
stitution of a corporation created under the laws of another State
in the same manner as the existing Code Authority, the substitution
of a non-corporate Code Authority truly representative of the
industry or such other actions as he may deem expedient.
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 pro-
visions of this Code.
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the. industry with the provisions of
(b) To adopt bylaws 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 furnish
such statistical information as the Administrator shall deem neces-
sary for the purposes recited in Section 3 (a) of the Act to such
Federal and State agencies as he may designate; provided nothing
in this Code shall relieve any member of the industry of any exist-
ing obligation to furnish reports to any government agency. No
individual report shall be disclosed to any other member of the
industry or to any other party except to such other governmental
agencies as may be directed by the Administrator except as herein-
after provided. And except further as provided in the Act, all sta-
tistical and other information, filed or obtained in accordance with
the provisions of this Article, shall be confidential and shall be
filed with a firm of public accountants in good standing or with
such other agency as the Code Authority may designate. No statis-
tical or other information furnished by individual members of the
industry shall be disclosed to any other member of the industry
(whether or not be he a member of the Code Authority), nor to
anyone in the employ of such other member; providing however that
such statistical or other information may be disclosed to members
of the Code Authority for the purpose of facilitating the adminis-
tration or enforcement of the Code, but only upon the written con-
sent of one of the Administrator's appointees to the Code Authority.
(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 Authority
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 coor-
dination of the administration of this Code with such other Codes,
if any, as may be related to the industry.
To designate representatives to act on a joint committee with rep-
resentatives of any other Code Authority of a related industry, hav-
ing reciprocal provisions in its code, to consider questions regarded
by either Code Authority as of common concern with reference to the
effectuation of the policies of the Act (including questions as to
whether the operations of a given concern come within the juris-
diction of this or any other code), and to take such action as they
may jointly agree to be appropriate, subject to the veto of the
(f) 1. It being found necessary in order to support the admin-
istration of this Code and to maintain the standards of fair compe-
tition 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
(c) After such budget and basis of contribution have been ap-
proved by the Admini-trator, to determine and obtain equitable
contribution as above set forth by all members of the industry, and
to that end, if necessary, to institute legal proceedings therefore in its
2. Eacrh 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, and subject to rules and regu-
lations pertaining thereto issued by the Administrator. Only meim-
bers of the industry complying with the Code and contributing to
the expenses of its administration as hereinabove provided (unless
duly exempted from making such contributions), 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 use
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 ap-
proved budget; and shall in no event exceed the total amount con-
tained in the approved budget except upon approval of the Admin-
istrator; 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 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 stabiliza-
tion of employment.
SECTION 10. The Code Authority shall require to such extent, in
.uch form and at such time as may be prescribed by the Code Au-
thority, members of the industry to prepare and file with a firm of
public accountants in good standing, to be designated by the Code
Authority, such information as may be required by the Administrator
in order to record the functioning or observance of this Code,
(a) Monthly reports of employment, showing for each employ-
ment classification, the average number of employees, and such addi-
tional information as is required to establish the observance or non-
observance of the wage and hour provisions of this Code;
(b) (1) Monthly reports of complete watch movements (in units)
purchased and sold and dollar inventories of parts; (2) month-end
inventories of the foregoing with proper description; (3) within
two (2) weeks after the effective date of this Code (unless the time
in further extended by the Code Authority, stch extension however
not to exceed thirty (30) days after such effective date), a report
containing a complete list of all imported watches or watch move-
ments whether complete or incomplete, and watch cases which the
member has in stock or out on memorandum or consignment, or in
which he has any direct or indirect ownership; such list to contain
a proper description as to size, shape, jeweling, adjustment, and for-
eign manufacturer's or importer's name and the trade mark or name
appearing on the movements. This list shall also contain the dollar
value of foreign made parts of watches in the members stock on the
effective date of this Code; (4) any other information which the
Code Authority may require. Such reports and other information
shall be furnished as of such date as the Code Authority may direct.
The foregoing information shall be classified in such manner as
the Code Authority may determine, having particularly in view the
tracing of imported merchandise (whether imported for own account
or purchased from other domestic sources) from the port of entry
to the customer.
SECTION 11. Each member of the industry shall keep accurate and
complete records of its transactions in the industry whenever such
records may be required under any of the provisions of this Code,
and shall furnish accurate reports based upon such records concern-
ing any of such activities when required by the Code Authority or
the Administrator. If the Code Authority or the Administrator
shall determine that substantial doubt exists as to the accuracy of any
such report, so much of the pertinent books, records and papers of
such member as may be required for the verification of such report
may be examined by an impartial agency, agreed upon between the
Code Authority and such member, or, in the absence of agreement,
appointed by the Administrator. In no case shall the facts disclosed
by such examination be made available in identifiable form to any
competitor, whether on the Code Authority or otherwise, or be given
any other publication, except such as may be required for the proper
administration or enforcement of the provisions of this Code.
SECTION 12. The Code Authority shall consider the problem aris-
ing from the practice of smuggling into this country of watches,
watch movements, and/or watch cases, and parts of all the fore-
going, with a view to reducing, as far as possible (1) the effects of
such practice upon the honestly conducted business, whether in this
industry or in the domestic watch manufacturing industry, and upon
unemployment and wages of such industries; and (2) the cost to
the Government arising from loss of import duties and of taxes upon
the profits of such industries. The Code Authority shall make
recommendations to the Administrator and/or to the other ap-
propriate government authorities, as to forms of record-keeping,
both by the importer and the custom's authorities; as to identification
of imported merchandise upon which duty has been paid; as to in-
creasing the premium money to informers, and as to the disposal of
smuggled merchandise seized by the United States Government.
SECTION 13. (a) Within two (2) weeks of the effective date here-
of (unless such time is further extended by the Code Authority,
such extension not to exceed thirty (30) days from the effective
date of this Code) each member of the industry shall register with
the Code Authority the title under which its business is conducted,
its business address, and the names and titles of its officers or firm
members and shall at that time apply for a mark, insignia, trade
mark, or number which the Code Authority shall assign to such
member for his exclusive use, and such number, mark, insignia,
or trade mark shall appear on all stationery or forms (except, those
used for internal purposes), and on all watches and watch move-
ments thereafter imported directly or indirectly by such member,
as the Code Authority may prescribe.
(b) The Code Authority shall assign to each member of this in-
dustry so registered, a registration number for the exclusive use of
such member. After one (1) month from the time of such assign-
ment the member's registration number shall appear on all such sta-
t ionery or other forms (excepting those used for internal purposes)
of the member as the Code Authority y may direct. Such registra-
tion number shall also appear on all watch movements imported by
the member after six (6) months from the date of such assignment;
but the Code Authority shall, subject, to the approval of the Adminis-
trator, have the right in specific cases to grant additional time (not
exceeding ninety (90) days) for compliance with this provision, on
the presentation of proper proof that a bona fide attempt has been
made to comply within the six (6) month period, and that the mem-
ber, though acting diligently and in good faith, has not been able so
(c) No mark, insignia, or number, nor any of the marks now
required by law to remain upon imported movements shall be
effaced, obscured, or changed in any manner after importation.
Section 14. After the effective date of this Code no member of
this industry shall order for import any complete watch or watch
cases unless he complies with the marking provisions of the Watch
Case Manufacturers' Code.
ARTICLE VII-COST AND PRICE CUTrING
SECTION 1. The standards of fair competition for the industry
with reference to pricing practices are declared to be as follows:
(a) Wilfully destructive price cutting is an unfair method of
competition and is forbidden. Any member of the industry or of
any other industry or the customers of either may at any time com-
plain to the Code Authority that any quoted or charged price con-
stitutes unfair competition as destructive price cutting, imperiling
small enterprise or tending toward monopoly or the impairment of
code wages and working conditions. The Code Authority shall
within five (5) days afford an opportunity to the member quoting
or charging the price to answer such complaint, and shall within
fourteen (14) days make a ruling or adjustment thereon. If such
ruling is not concurred in by either party to the complaint, all
papers shall be referred to the Research and Planning Division of
the National Recovery Administration which shall render a report
and recommendation thereon to the Administrator.
(b) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. It is intended
that sound cost estimating methods should be used and that con-
sideration should be given to costs in the determination of pricing
(c) When an emergency exists as to any given product. sale below
the stated minimum price of such product, in violation of Section 2
hereof, is forbidden.
SECTION 2. (a) If the Administrator, after investigation, shall at
any time find both (1) that an emergency has arisen within the
industry adversely affecting small enterprises or wages or labor con-
ditions, or tending toward monopoly, or other acute conditions which
tend to defeat the purposes of the Act; and (2) that the determina-
tion of the stated minimum price for a specified product within the
industry for a limited period is necessary to mitigate the conditions
constituting such emergency and to effectuate the purposes of the Act,
the Code Authority may cause an impartial agency to investigate
costs and to recommend to the Administrator a determination of the
stated minimum price of the product affected by the emergency and
thereupon the Administrator may proceed to determine such stated
(b) When the Administrator shall have determined such stated
minnimum price for a specified product for a stated period, which
price shall be reasonably calculated to mitigate the conditions of such
emergency and to effectuate the purposes of the National Industrial
Recovery Act, he shall publish such price. Thereafter, during such
stated period, no member of the indu.-try shall sell such specified
Products at a net realized price below said stated minimum price and
any such sale shall be deemed destructive price cutting. From time
to time, the Code Authority may recommend review or reconsidera-
tion or the Administrator may cause any determination hereunder
to be reviewed or reconsidered and appropriate action taken.
COST FINDING AND ACCOUNTING
The Code Authority shall cause to be formulated methods of cost
finding and accounting capable of use by all members of the industry,
and shall submit such methods to the Administrator for review.
If approved by the Administrator, full information concerning such
methods shall be made available to all members of the industry.
Thereafter, each member of the industry shall utilize such methods
to the extent found practicable. Nothing herein contained shall be
construed to permit the Code Authority, any agent thereof, or any
member of the industry to suggest uniform additions, percentages
or differentials or other uniform items of cost which are designed
to bring about arbitrary uniformity of costs or prices.
ARTICLE VIII-TRADE PRACTICE RUIRES
SECTION 1. No member of the industry shall publish advertising
(whether printed, radio, display, or of any other nature), which is
misleading or inaccurate in any material particular, nor shall any
member in any way misrepresent any goods (including, but without
limitation, its use, trade mark, 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
SECTION 2. All orders and invoices shall include a clear and com-
plete statement of the terms and conditions upon which the trans-
action was based and no member of the industry shall withhold
from or insert in any quotation, order or invoice any statement that
shall make it inaccurate in any material particular.
SECTION 3. No membber of the industry shall falsely brand or mark
or pack any goods in any manner which is intended to or does de-
ceive or mislead purchasers with respect to the brand, grade, quality
quantity, origin, size, substance, character, nature, finish, material
content, or preparation of such goods.
SECTION 4. NO mnem'ber of the industry shall publish advertising or
otherwise circulate statements or inferences which refer inalccuranitly
in any material particular to any competitor's conduct, ability to
perform contracts, credit standing, or otherwise, or to such competi-
tor's goods, prices, values, credit terms, policies, or services.
SECTION 5. No member of the industry shall publish or cir-c ate
unju-tified or unwarranted threats of legal proceedings which tend
to or have the effect of harassing competitors or intimidating their
SECTION 6. No member of the industry shall secretly offer or make
any payment or allowance of a rebate, refund, commission, credit,
unearned discount, or allowance in excess of those hereinafter speci-
fied, 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.
SECTION 7. No merchandise shall be shipped:
(a) On consignment or memorandum, except upon approval by
the Code Authority where peculiar conditions in the industry war-
rant same and except that products may be so shipped to be shown
to a specific customer of the consignee, or to permit selection by
the consignee for purposes of stock, provided, however, that unless
the consignee shall make report, on such products within ten (10)
days of receipt thereof, they shall be regularly invoiced on the net
(b) For advertising display purposes, except in accordance with
such rules and regulations as may be prescribed by the Code
SECTION 8. No merchandise shall be accepted for credit or ex-
change unless defective, demonstrably below sample, or because re-
ceived after the agreed delivery date, or in other material respects
does not conform with the contract of sale, and then only if notice
is received from the customer within two (2) weeks of date of
receipt of said merchandise by the customer, stating his intentions
and the reasons therefore. If found to be defective or below sample
or in other material respects does not conform with .the contract
of sale, the member of the industry may issue to the customer a
credit memorandum or refund monies paid.
SECTION 9. No watch movements shall be repaired for less than
the cost of such repairs, unless such repairs are necessitated by defec-
tive material and 'or workmanship and then only if such merchan-
dise has been returned by the customer within sixty (60) days of
receipt thereof from the member of the industry.2
SECTION 10. No member of the industry shall give, permit to be
given, or directly or indirectly 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 o
the employer of such employee, the principal of such agent, or the
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 adver-
tising except so far as such articles are actually used for commercial
bribery as hcreinabove defined.
SECTION 11. No member of the industry shall dispose of or permit
the disposal of second-hand or rebuilt watches, or watches contain-
ing second-hand or rebuilt movements, unless there shall be affixed
to each such watch a tag stating that the watch is second-hand or
rebuilt and requiring that the tag remain affixed until the watch is
sold at retail.
a Deleted and substitution made. See paragraph 2 (1) of order approving this Code.
SECTION 12. No member of the industry shall give, permit to be
given, or directly offer to give any free watch material or cabinets
or display boxes, except to the extent that such watch material may
be supplied without charge for purposes of replacing demonstrably
defective material previously sold to the recipient.
SECTION 13. No member of the industry shall distribute dealers'
helps, such as mailing cards, mailing or counter folders, etc., at a
price calculated to reimburse the member for less than fifty per cent
(50%) of his out-of-pocket costs. This restriction shall not include
window or outside displays, engraving, electrotype, plates, stereo-
types, matrices, and the like.
SECTION 14. No member of the industry shall attempt to induce
the breach of an existing contract between a competitor and his
employee or customer or source of supply; nor shall any such
member interfere with or obstruct the performance of such con-
tractual duties or services
SECTION 15. No member of the industry shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms, nor cause or attempt to cause any member of the indus-
try to change his price terms by the use of intimidation, coercion,
or any other influence inconsistent with the maintenance of the free
and open market.
SECTION 16. All prices quoted and all sales made shall be f. o. b.
point of shipment.
SECTION 17. On all sales made on or after the effective date hereof,
all members of the industry shall adhere strictly to the following
(a) Terms shall be no more favorable than 2%, 10 days, e.o.m.,
60 days net- providing that on shipment made after the 25th day
of the month, the member of the industry may date as of the first
of the following month, and providing further, that settlements made
under the terms of this subsection (a) shall be in cash. Such settle-
ments not discounted under the terms of this subsection (a) may be
entitled to anticipation at the rate of 6% per annum, if made before
the expiration of the 60-day period. Interest at the rate of /2
per month shall be charged on all open accounts running beyond
such net settlement date.
(b) Where members of the industry require long advance prepa-
rations in completing their products, the following terms may be
allowed to customers by members of the industry who are whole-
saling products valued at $20.00 or more each wholesale and only
with respect to articles so valued; amounts due for merchandise
purchased during the six (6) months between January 1 and June
30 (both inclusive) in any year, shall be payable on July 10 of that
year; amounts due for merchandise purchased during the six (6)
months between July 1 and December 31 (both inclu-ive) in any
year shall be payable on January 10 of the following year; provid-
ing, however, that discounts allowed shall not exceed two (2) per
cent, and providing further that, where a particular customer avails
himself of the provisions of this paragraph (b), he shall not be
granted longer terms on purchases of other merchandise within the
same six (6) months' period.
*Ametded. See paragraph 2 (2) of order approving this Code.
UNIVERSITY OF FLORIDA
IIIII IIIIII IIIII l D II 1l III IIII EI mIII lI
38 3 1262 08582 8340
(c) By agreement with the purchaser prior to shipment, any
member of the industry may accept notes in settlement"'of the ac-
count, provided, however, that such notes shall be dated not later
than the 10th of the month following such shipment and shall be
in the hands of the member at or about the 15th of the month and,
provided further, that such note settlement shall not exceed ten (10)
monthly notes nor average over five (5) months. If force of cir-
cumstances shall require extension of original notes at maturity,
interest shall be charged at the rate of six per cent (6%) per annum
for such extension, which, however, shall be for not over ninety
SECTION 18. No cash discount shall be allowed on any note settle-
ment, nor shall a non-interest bearing note be accepted in payment
of a matured obligation. Notes accepted after the net due date with
a tolerance of ten (10) days must bear interest from the net due date
at a rate not less than six per cent (6%) per annum, or at the legal
rate governing the contract, if less than six per cent (6%) from the
net due date, provided that unsecured and non-interest bearing
notes may be accepted from insolvent or financially embarrassed
debtors. Notes so accepted shall be immediately reported to the
SECTION 19. No member of the industry shall make allowances
and/or donations to customers for advertising purposes or for any
other purpose not approved by the Code Authority.
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.
SECTION 2. This Code., except as to provisions required by the Act,
may be modified or amended on the basis of experience or changes in
circumstances, such modifications or amendments 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 President,
unless otherwise provided.
ARTICLE X-MONOPOLIES, ETC.
SECTION 1. No provision of this Code shall be so applied as to
permit monopolies or monopolistic practices, or to eliminate, op-
press, or discriminate against small enterprises.
ARTICLE XI--EFFECTIVE DATE
SerrION 1. This Code shall become effective upon the tenth (10th)
day after its approval by the Administrator.
Approved Code No. 510.
Registry No. 1208-07.
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