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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS SUBMITTED ON AUGUST 30, 1933
REGISTRY No. 1212-1-03
This Code for the Lighting Equipment 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
UNIV. OF FL L w. C
aW" OUM PA"
u.U. E IS we o m
U.S. DE *
GOVERNMENT PRINTING OFFICE
For sale by the Suawerintendont of Documents. Washington. D.C. - -Price 5 cents
CODE OF FAIR COMPETITION OF THE LIGHTING
ARTICLE I-PURPOSE OF THE CODE
The purpose of this Code is to effectuate the policy of Title I of
the National Industrial Recovery Act insofar as it is applicable to
the industry. The Code is not designed. to promote monopolies, elim-
inate or oppress small enterprises, and will not operate to discrimi-
nate against them.
SECTION 1. The term industry" means the complete designing
and manufacturing of lighting equipment units for illumination pur-
poses, made of metal, or metal and glass, or other material, or of
glass and other materials, in conjunction with a supporting frame
of any material. This excludes coves of any material which are
part of the walls of the building.
SEO. 2. The term "employer is defined to mean any person en-
gaged in the industry who sells a complete lighting equipment unit
of his own production.
SEC. 3. The term "employee" means every employee in the in-
dustry excepting executives, superintendents, manufacturing and
designing supervisory staff, salesmen, maintenance and repair men,
SEC. 4. The term "person" means natural persons, partnerships,
associations, and corporations.
SEC. 5. The term the association means the Artistic Lighting
Equipment Association. a trade association having its executive office
at 40 Wall St., New York City.
SEC. 6. The term Executive Committee" means the Executive
Committee of the Artistic Lighting Equipment Association.
SEC. 7. The term the President" means the President of the
United States of America.
ARTICLE III-ADMINISTRATIVE AGENCY
The Executive Committee of the Artistic Lighting Equipment
Association is hereby designated the agency for administering the
provisions of this Code by the members of the Lighting Equipment
ARTICLE IV-PARTICIPATION IN THE CODE
Any employer may participate in this Code and in any revisions
or additions thereto and receive the benefits thereof by accepting
the proper pro rata share and responsibility of creating and admin-
istering it, either by becoming a member of the Association or by
paying to'it an amount equal to the dues from time to time provided
to be paid by a member in like situation of the Association.
ARTICLE V-LABOR RELATIONS, MAXIMUM HOURS OF LABOR, MINI-
MUM RATES OF PAY
A. LABOR RELATIONS
SECTION 1. No employer in the industry shall employ any person
under the age of sixteen (16) years.
SEC. 2. (a) Employees shall have the right to organize and bar-
gain collectively through representatives of their own choosing, and
shall be free from the interference, restraint, or coercion of em-
ployers of labor, or their agents, in the designation of such repre-
sentatives, or in self-organization, or in other concerted activities
for the purpose of collective bargaining or other mutual aid and
(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.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment
approved and prescribed by the President.
SEC. 3. The plants of the industry, in conformity with their estab-
lished custom, shall be open to capable workmen, without regard
to their membership or nonmembership in any labor organization.
The industry firmly believes that the unqualified maintenance of this
principle is in the interest of its employees.
B. MAXIMUM HOURS OF LABOR
No employees (including a proprietor or others doing productive
work) shall work more than forty (40) hours per week in the
Provided, however, that this limitation shall not apply to those
sections of the industry in which seasonal or peak demands place an
unusual or temporary burden upon such sections. In such cases no
employee shall be permitted to work more than an aggregate of
one hundred and forty-four (144) hours per year in excess of the
limitation herein provided. At the end of each calendar month every
employer shall report to the Executive Committee in such detail as
may be required the number of man-hours worked in that month on
account of seasonal or peak demand requirements, and the ratio
which such man-hours bears to the total number of man-hours of
labor during said month.
C. MINIMUM RATES OF PAY
SECTION 1. (a) The minimum wage that shall be paid by any em-
ployer to any employee engaged in the processing of the products
of the Lighting Equipment Industry and in labor operations directly
incident thereto shall be forty (40) cents per hour, unless the rate
per hour for the same class of labor on July 15, 1929, was less than
forty (40) cents, in which case the rate per hour shall be not less
than the rate per hour paid on July 15, 1929, and provided also that
in no event shall the rate per hour be less than thirty (30) cents per
hour, and provided further that casual and incidental labor and
learners may be paid not less than eighty (80) percent of such
minimum wage, but the total amount paid to such casual and inci-
dental labor and learners shall not exceed in any calendar month
five (5) percent of the total wages paid to all process labor by such
(b) The minimum wage that shall be paid by any employer to all
other employees, except commission sales people, shall be at the rate
of fifteen (15) dollars per week, provided, however, that office boys
or girls, learners, and casual employees may be paid not less than
eighty (80) percent of such minimum wage but the total amount
paid to such office boys or girls, learners and casual employees shall
not exceed in any calendar month five (5) percent of the total amount
paid by such employer to all employees covered by the provisions of
this paragraph (b).
ARTICLE VI-PROVISIONS GOVERNING COMPETITIVE PRACTICES
SECTION 1. Selling Belo-w Cost.-No employer shall sell his product
below the cost of production except as permitted by the Executive
Committee to meet special conditions. The cost of production shall
be determined in accordance with the simple uniform method of
costing hereinafter provided for.
SEC. 2. Policy on Catalogues and Price Lists.-If the Executive
Committee determines that in any branch or sub-division of the
Lighting Equipment Industry it has been the generally recognized
practice to sell a specified product on the basis of printed net price
lists, or price lists with discount sheets, and fixed terms of payment,
which are distributed to the trade with illustrations and proper
identification, each manufacturer of such product shall within ten
(10) days after notice of such determination file with the Executive
Committee a net price list or a price list and discount sheet as the
case may be, individually prepared by him showing his current
prices, or prices and discounts, and terms of payment.
Revised price lists with or without discount sheets may be filed
from time to time thereafter with the Executive Committee by any
manufacturer of such product, to become effective upon the date
specified therein, but such revised price lists and discount sheets shall
be filed with the Executive Committee ten (10) days in advance of
the effective date, unless the Executive Committee shall authorize a
The price lists filed with the Executive Committee shall be open
to inspection at all reasonable times by any employer in the industry.
SEC. 3. Issue of New Lines.-Manufacturers of residential light-
ing fixtures produced for resale shall file a net price list with illus-
trations and proper identification of all current lines not later than
February 15 of any year.
Additional lines or items may be offered on the approval of the
Executive Committee. Such approval shall be granted within thirty
(30) days. If approval is not granted for any reason, an appeal
may be made by the person seeking such approval to the Arbitra-
tion Board of the association.
SEC. 4. Discounts and Comm8issiO1s.-All persons in the industry
shall afford equal terms, prices, and advantages to their customers,
and shall allow no discounts or commissions except as approved by
the Executive Committee of the section or sections with which they
SEc. 5. Pricing.-Products of the industry shall be priced at the
factory and be billed f.o.b. factory.
SEC. 6. Shipping, Packing, etc.-Where packing costs and ship-
ping charges are not figured in the cost of the product, an additional
charge shall be made for packing and delivery expense.
SEC. 7. Charges for Special Drawings.-Where drawings are sub-
mitted in competition with other manufacturers of lighting fixtures
to an owner direct, or through his authorized agent, a professional
service fee of two (2) percent of the bid shall be charged by each
bidder and paid to each and every unsuccessful bidder by the owner
or his authorized agent. No successful bidder shall assume the cost
of the design charges herein provided. No member of the industry
shall prepare drawings for anyone which shall be used as a basis
SEC. 8. Policy on Specified Appropriations.-Where an invitation
to submit a proposal for a specified sum is received by a manufac-
turer, no bid shall be submitted for less than the amount which the
invitation states is appropriated.
SEC. 9. Policy on the Practice Known as Bid Peddling ".-(a) No
manufacturer shall furnish quotations for lighting fixtures of special
or regular design to a dealer or electrical contractor, or any other
firm or individual, who has already been awarded a contract for such
fixtures in open competition; nor shall any manufacturer accept an
order based on quotations which have not been furnished before the
award of such a contract; nor shall any manufacturer reduce his
quotations made before the award of the contract after such award,
except as he may furnish reasons therefore satisfactory and sufficient
to the Executive Committee.
(b) Persons submitting bids for lighting equipment who seek
bids from submanufacturers whose prices and products are incor-
porated in the making of the general bid shall, in the event of receiv-
ing such contracts, place the order for the specified material with the
submanufacturer whose quotations were used in compiling the bid
without further competition inferred or implied.
SEC. 10. Prices for Combined Complete Units.-No person shall
quote a total price on any schedule of lighting equipment which does
not show the unit prices of the articles comprising the schedule.
When an article consists of two or more parts, which of themselves
are considered complete units by the industry, the unit price of the
combined article shall not be less than the sum of the unit prices of
the articles which comprise it.
SEC. 11. Catalogue Charges.-A minimum charge to the distributor
or dealer of fifteen (15) cents each shall be made for all residential
lighting fixture catalogues in excess of twenty-five (25) copies.
A charge of one (1) cent a sheet shall be made for separate sheets
in excess of twenty-five (25) copies.
Electrotypes shall be furnished and charged for. Credit shall be
given if returned within six (6) months.
SEC. 12. Use of Prevailing Wlage Rates.-Wherein contracts are to
be let in various parts of the country and there is a variance in
installation labor wages, it shall be the privilege of the manufacturer
to use the labor costs for installation work only that prevail in the
various geographical sections in order that he can figure his selling
price accordingly and be in fair and equitable competition in con-
nection with the bids that are submitted in the respective zone.
SEC. 13. Shipments on Approval or Consignment.-No samples or
stock shall be sent on approval or consignment by any wholesale
SEC. 14. Samples.-No person in the industry shall make, loan,.
submit, or install models or samples in competition except where he
is reimbursed in full for all costs or expenses incurred thereby,
including the service charge if necessary to accept the return of
SEo. 15. Return of Merchandise.-No merchandise shall be re-
turned, or accepted by the manufacturer when returned, unless the
consent of the manufacturer, in writing, has first been obtained. No
merchandise shall be accepted for return which has been in the
possession of the customer for a period of thirty (30) days or more.
When merchandise is returned according to the provisions of this
section, a service charge of not less than twenty (20) percent plus
return freight charges shall be charged.
Provided, however, that this section shall not apply when it is
shown that the merchandise was defective or not shipped according
to the order of the buyer.
SEC. 16. Orders and Con.tracts.-All transactions between members,
of this industry and their customers shall be confirmed by signed
orders or contracts. Records, documents, and book entries shall
accurately reflect such transactions, and no entry or document
usually made in the normal course of business shall be omitted in
whole or in part from such records, so that the original transaction
and all modifications thereof shall be accurately reflected from an
inspection of such available books and records.
SEc. 17. Registration of Design..-All lighting equipment designs
which are original and not patented and for which patent has not
been applied shall be registered by wholesale manufacturers with the
association. Retail manufacturers may register such of their original
designs as they desire to protect under the same conditions. All dis-
putes under this provision shall be settled under the arbitration rules
of the association.
No person in the industry shall copy and/or reproduce any design
or pattern so registered or appropriate the selling feature of any
design or pattern.
SEC. 18. Substitution of Materials.-The use or substitution of"
materials or the delivery of products which do not conform to
.samples submitted or representations made prior to securing the
order, without making the proper adjustment in the quoted price
and clearly indicating the nature of the substitution, shall be deemed
.a violation of this Code.
SEC. 19. Rebates, Refunds, etc.-The payment or allowance of re-
bates, refunds, unearned discounts, gratuities, or gifts, in any form,
to customers or their agents shall be deemed a violation of this Code.
SEC. 20. False Advertising.-Advertising, selling, or offering to
sell any product in such manner as to deceive purchasers or intend-
ing purchasers as to quality or grade of such product, shall be
deemed a violation of this Code.
SEC. 21. False Statements.-The making of false statements with
respect to a competitor's prices, products, policies, or practices shall
be deemed a violation of this Code.
ARTICLE VII-PRIOR CONTRACTS
SECTION 1. Increased Costs.-Where the costs of executing contracts
entered into by members of the industry prior to the adoption of this
Code are increased as a result of the operation of the provisions of
this Code, appropriate adjustments of such contracts may be made
so as to reflect such increased costs.
SEC. 2. Agency of Adjusttnment.-The Arbitration Committee of
the association is constituted an agency for effecting such adjust-
ments where such adjustments cannot be agreed upon by the parties
All disputes of whatever nature between persons in the industry
shall be settled by arbitration under the arbitration rules of the
association and every contract shall contain a provision to that effect.
ARTICLE IX-ADMINISTRATION OF THE CODE
SECTION 1. Powers of Executive Committee.-The Executive Com-
mittee shall have power:
(a) To administer the provisions of this Code.
(b) To adopt rules and regulations for the enforcement thereof.
(c) To consider amendments and exceptions to this Code.
(d) To entertain and hear complaints against any person in the
industry arising out of an alleged violation of this Code,
(e) To initiate proceedings before the appropriate governmental
agencies to prevent and/or punish violations of this Code.
(f) To make provisions for an adequate cost-accounting system
for the industry.
(g) To establish as soon as practicable a Bureau of Credit Infor-
mation for the industry.
(h) To establish rules and regulations for the disposal of distress
merchandise in such a way as to protect the owners thereof and to
cause the least possible disturbance to the stability and sound condi-
tions of the industry.
(i) To obtain from time to time from each person in the industry
specific reports in such form and containing such information as the
Executive Committee may prescribe. To this end th'e duly ac-
credited executive officer of the agency shall have access to all places
of 'business maintained by any person to whom this Code is appli-
cable and shall have the right at all times, in cases of dispute or com-
plaint calling for verification, to examine the books of accounts,
records, and files of all persons in the industry. No information thus
obtained shall be revealed to anyone but a member of the adminis-
trative staff or the properly accredited representative of the Ad-
ministrator of this Act.
(j) To make recommendations for establishing a uniform and
standard method of estimating special designs.
(k) To make available to established credit agencies all useful
information regarding the actual functioning of this Code, to the
end that available credit may be adapted to the needs of the industry
considered as a whole, and to the needs of the small as well as the
large units thereof.
(1) To make recommendations for investigating and informing
the Administrator as to the importation of competitive articles into
the United States in substantial quantities or increasing ratio to do-
mestic production on such terms or under such conditions as to
render ineffective or seriously to endanger the maintenance of this
Code, and of making complaint to the President in behalf of the
Lighting Equipment Industry under the provisions of the National
Industrial Recovery Act with respect thereto.
(m) To collect such statistics and trade information from persons
in the industry as they may deem desirable for the betterment of the
With a view to keeping the Administrator informed as to the
observance or non-observance of this Code, and as to whether the
Lighting Equipment Industry is taking appropriate steps to effec-
tuate the declared policy of the National Industrial Recovery Act,
the Administrator will be furnished such reports as he may from
time to time require.
ARTICLE XI-VIOLATIONS AND PENALTIES
SECTION 1. Failure to perform any obligation of this Code shall
be subject to the legal remedies and penalties set forth in the
National Industrial Recovery Act.
SEC. 2. Should any reports or data furnished by any person in
the industry be found, upon checking by the duly accredited execu-
tive officer to be untrue, the expense of such check shall be borne
solely by the person filing such untrue report or data.
Each person shall be liable to a penalty of one (1) dollar for each
day's delay in filing reports.
ARTICLE XII-MODIFICATIONS AND AMENDMENTS
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the rights of the President, in accordance with the
provision of Clause 10(b) of the National Industrial Recovery Act,
from time tb time, to cancel or modify any order, approval, license,
rule or regulation, issued under Title I of said Act, and specifically
to the right of the President to cancel or modify his approval of
this Code or any conditions imposed by him upon his approval
SEC. 2. Should any provision of this Code be declared invalid or
unenforceable, the remaining provisions thereof shall continue in full
force and effect.
SEC. 3. All amendments to this Code shall first be proposed by the
Executive Committee of the association by a vote of the majority
members thereon. Such amendments shall then be submitted to a
meeting of the members of the association and the members of the
Code, which shall be called for such purpose upon notice specifying
the amendments to be voted upon. If at such meeting sixty (60)
percent of the members present or by proxy entitled to vote upon
such amendments shall cast their votes in favor of such amendments,
such amendments shall be submitted to the President for approval,
and, if approved by him, shall have the same force and effect as if
originally a part hereof.
No member of the Executive Committee, the President, the Treas-
urer, or any committee appointed under this Code, or any officer or
employee appointed under this Code, shall be liable to anyone for
any action or omission to act under this Code except for his wilful
misfeasance or nonfeasance.
ARTIcLE XIV-EFFECTIVE DATE
This Code shall become effective ten (10) days after its approval
by the President.
UNIVERSITY OF FLORIDA
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