AS APPROVED ON MARCH 10, 1934
GOVERNMENT PRINTING OFFICE;
WASHINGTON : 1934
For sale by the Superintendent of Documents, Washington, D.C. - - - - Price 5 cenls
Approved Code No. 327
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AND STAPLING MACHINE
Registry No. 1399-41
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.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
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Approved Code No. 327
CODE OF FAIR COMPETITION
MACHINE-APPLIED STAPLE AND STAPLING
As Approved on March 10, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE MAIACIIINE-APPLIED
STAPLE AND STAPLING MACHINE INDUSTRY
An application having been duly made purs uant 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 Machine-Applied Staple and Stapling
Machine 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 Unitedl
States, I, Hiughli S. Johniion, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find that said Code complies in all respects with the
pertinent provisions and will promote the policy and puirpi,,'s of said
Title of said Act; and do hereby order that said Code of Fair Coin-
petition be and it is hereby approved; provided, however, that the
provisions of Article VIII, (Section 2) insofar as they prescribe a
waiting period between the filing with 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 either
within a period of sixty days from the effective date of this Code
or after the completion of a study of open price associations now
being conducted by the National Recovery Administration; and pro-
vided, further, that the continued participation of the Staple Asso-
ciation of America in the Code Authority after 30 days from the
effective date of this Code shall be contingent upon its amending its
constitution and by-laws to the satisfaction of the Administrator.
HIUGII S. JOHNSON,
Administrator for In dustrial Recovery.
W. A. HARRIMAN,
D;v.;'Sion Adinm hd;ni -raor.
March 10, 19314.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Code of Fair Competition for the
Machine-Applied Staple and Stapling Machine Industry, the hear-
ing having been conducted thereon in Washington, D.C., on Febru-
ary 16, 1934, in accordance with the provisions of the National
Industrial Recovery Act.
RESUME OF CODE AS TO WAGES AND HOURS
This Code provides an 8 hour working clay and 40 hour week,
except that in peak periods employees may work not to exceed 48
hours for 6 weeks in any 26 weeks' period. These provisions are
applicable to all employees except those in a managerial, executive
or supervisory capacity, receiving not less than $35.00 per week;
outside salesmen; and watchmen who may be permitted to work not
more than 56 hours per week.
The minimum rates of pay provided are 35 per hour for em-
ployees engaged in packing operations and 400 per hour for all other
classes of processing employees. With the exception of watchmen,
time and one-half will be paid all employees working under the
maximum hour clauses for hours worked in excess of 40 hours per
week and 8 hours per day.
Clerical employees on a weekly pay basis are to be paid not less
Equitable adjustments are to be made in all wage rates above the
Child Labor is prohibited and no person under 18 years of age
shall be employed in a hazardous occupation.
The Machine-Applied Staple and Stapling Machine Industry as
defined in the Code includes the manufacture and sale of machine-
applied staples and stapling machines. The customers for the lighter
type of minachine- and staples are stationers and stationery distrib-
utors. while the heavier type of machines and staples are sold to
various manufacturing industries to be used in various fastening
The investment in the Industry is approximately $1,942,000 and
the number of wage earners in normal times is about 800. In nor-
mnal times, the total annual wages paid by 16 reporting manufac-
turers out of a total of 26 in the Industry, amounted to approxi-
mately $726,700 to 535 employees.
Inq ll29. the operations of the Industry were approximately 85,%
of capacity in machines and 90% of capacity in staples. Figures are
not available for the entire Industry as to the value of these articles.
An approximate estimation based on the data of reporting manufac-
turers, however, would give this figure at about $1,350,000.
Operations in 1930 for machines were about 74% of capacity and
for staples about 80% of capacity; in 1931 about 70% of capacity
for machines and about 70% of capacity for staples; in 1932 about
42% of capacity for machines and about 50% of capacity for staples;
in 1933 about 50% of capacity for machines and about 67% of capac-
ity for staples.
It is to be noted that the capacity for machine manufacturing has
been increased about 14% since 1929 and that the capacity for pro-
ducing staples has been increased 30% during the same period.
Industry calls attention to the fact that the increase in production
of staples in 1933 over 1932 was, in a measure, caused by the differ-
ences in exchange rates which tended to prohibit the importation of
I believe that the Code is fair to Industry, to Labor and to the
Public, and is in accordance with the intent and purpose of the
National Industrial Recovery Act.
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 in-
dustry 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 limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant group
is an industrial group truly representative of the aforesaid Industry;
and that said group imposes no inequitable restrictions on admisuiia
to membership tlierein.
(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, therefore, I have approved this Code; provided,
however, that the provisions of Section 2, Article VIII, insofar as
they prescribe a waiting period between the filing with 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 either within a period of sixty days from the effective
date of this Code or after the completion of a study of open price
associations now being conducted by the National Recovery Admin-
istration; provided, however, that the continued participation of the
Machine-Applied Staple and Stapling Machine Industry in the Code
Authority after 30 days from the effective date of this Code shall be
contingent upon its amending its constitution and by-laws to the.
satisfaction of the Administrator.
HUGH S. JOHNSON,
MARCH 10, 1934.
CODE OF FAIR COMPETITION FOR THE MACHINE-
APPLIED STAPLE AND STAPLING MACHINE INDUS-
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code
of Fair Competition for the Machine-Applied Staple and Stapling
Machine Industry, and shall be the standard of fair competition for
such industry and shall be binding upon every member thereof.
SECTION 1. The term "Machine-Applied Staple and Stapling Ma-
chine Industry" includes the manufacturers and/or national dis-
tributors of Machine-Applied Staples and/or Stapling Machines,
but does not include the types of Stapling Machines used in the
SECTION 2. The term "Member of the Industry" includes but with-
out limitation, any individual, partnership, association, corporation
or other form of enterprise engaged in the Industry either as an
employer or on his or its own behalf.
SECTION 3. The term "Association" as used herein is defined to
mean the Staple Association of America.
SECTION 4. The term "President", "Act", and "Administrator"
as used herein shall mean respectively the President of the United
States, Title I of the National Industrial Recovery Act, and the
Administrator for Industrial Recovery.
SECTIoN 5. The term "employee" as used herein includes afiy and
all persons engaged in the Industry, however compensated, except a
member of the Industry.
SECTION 6. The term "Employer" as used herein includes anyone
by whomn any such employee is compensated or employed.
SECTION 7. The term "Plant" means a factory prxlucing machine-
applied staples and/or stapling machines in the Industry as herein
SECTION 8. The term "majority vote" shall mean a vote of at
least fifty-one (51%) per cent of the members of the Industry,
present either in person or by proxy, whose aggregate sales in the
preceding year were not less than seventy-five (75%) per cent of
the total sales of the Industry. Aggregate sales as herein used
shall not include sales made by a parent member to his or its sub-
sidiary national distributor.
SECTION 9. The term National Distributor" means an individual,
firm, corporation, partnership, agency or organization who handles
the entire sales for a specific class of trade or trades exclusively and
solely for any one manufacturer in the Industry or sells for any one
manufacturer the manufacturer's entire output of a specific product,
and who operates on a nationwide scale.
ARTICLE III-WORKING HOURS
SECTION 1. Maximum Hours.-No employee shall be permitted to
work in excess of forty (40) hours in any one week or in excess of
eight (8) hours in any twenty-four (24) hour period, nor more than
six (6) clays per week, except as herein otherwise provided.
SECTION 2. Exceptions as to Hours.-
(a) Execu'tives and Salesmen.-The provi;tions of Section 1 above
shall not apply to executives and supervisors who are paid $35.00
weekly or more, and outside salesmen.
(b) Emergent y Overtime.-The maximum hours fixed in the fore-
going Section 1 shall not apply to any employee on emergency main-
tenance or emergency repair work involving breakdowns or protec-
tion of life or property, or on emergencies occasioned by the necessity
for services of specially skilled empl)loyees which can not be cared
for by the employment of additional men. But in any such special
case, at least one and one-half times the normal rate shall be paid
for hours worked in excess of the maximum provided in Section
(c) Ordiinar Overtim.e.-The maximum hours fixed in Section
1 above shall not apply for six (6) week,; in any twenty-six (26)
weeks' period, during which overtime shall not exceed eight (8)
hours in any one week. In any such case at least one and one-half
times the normal rate -hall be paid for hours worked in excess of
eight (8) hours in any twenty-four (24) hour period, or in excess
of forty (40) hours in any seven (7) day period.
(d) Rporting Overtine.-All work in excess of the hours pro-
vided in Section 1 above shall be reported to the Code Authority in
such detail as may be required.
SECTION 3. Sunday and Holiday Work.-Not less than one and
one-half (1,',) times the regular rate shall be paid for all work
performed on Sundays or legal holidays-watchmen excepted.
SECTION 4. The provisions of this Article shall not apply to watch-
men who shall be permitted to work not. in excess of fifty-six (56)
hours per week.
SECTION 5. Employment by Several Emplayers.-No employer
shall permit any employee to work for any time which, when totaled
with that already performed for another employer or employers,
exceeds the maximum permitted herein.
SECTION 6. Mambnum Hours for Work'bing Employers.-Employ-
ers, owners or partners who personally perform manual work or are
engaged in mechanical operations shall not exceed the prescribed
maxiimuni number of hours.
SE' TiON 1. (a) No employee engaged in packing operations shall be
paid less than the rate of thirty-five (35) cents per hour and all other
classes of employees shall be paid not less than forty (40) cents per
hour except as hereinafter provided.
(b) Any clerical employee shall be paid at a rate not less than
fifteen ($15.00) dollars per week; provided, however, that office boys
and girls and messengers shall be paid at a rate not less than eighty
(801) percent of the miniinuni salary hurein provided, and provided
further, that the number of such office boys and girls and messengers
so paid by any employer shall constitute not more than five (5%)
percent of the total number of his emi)ployee-, but in any case, such
emlnployer shall b entitled to employ one such emiplhiyee.
SECTION 2. P(ce Kates.-This Article establishes a minimum com-
pensation, irrepective of whether an enphloyee is actually paid on
a time rate, on a piece rate, or other basis.
SECTION 3. Fctl o7,,,.-Feniale emjlye..- performing substantially
the same work as male employees shall receive the same rate of pay
as male employee.,; and where they displace men they shall receive
the same rate of earnings as the men they displace. The Code
Authority shall within ninety days after the effective date of this
Code file with the Administrator a description of all occupations in
the Industry in which both men and women are employed.
SECTION 4. Handicapped Pc.-iso, .-An individual whose earning
capacity is limited because of age or physical or mental handicap
may be eminployed on lighlit work at a wage below the minimum estab-
lished by this Code if the employer obtains froin the State Authority
designated by the United States Department of Labor a certificate
authorizing his employment, at such wages and for such hours as
shall be stated in the certificate; provided, however, that the total
number of such employees shall not exceed more than five (5%)
percent of the total number of employees. Each employer shall file
with the Code Authority a list of all such p)erson., employed by him.
SECTION 5. Equitable adjustment of comlpen.-watio, of employees
receiving more than the minimum rate, of pay herein prescribed
shall be made by all employers who have not heretofore made such
adjustments, and all employers shall within thirty (30) days after
approval of this Code, report in full to the Code Authority concern-
ing such adjustments whether made prior to or subsequent to such
approval, provided, however, that in no event shall hourly rates of
pay be reduced.
ARTICLE V-ADDITIONAL LABOR PROVISIONS
SECTION 1. As required by Section 7 (a) of Title I of the National
Industrial Recovery Act, it is hereby provided:
That employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall be
free from thlie 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; that no
employee and no one seeking employment shall be required as a con-
dition of employment to join any company union or to refrain from
joining, organizing, or assisting a labor organization of his own
choosing; and that employers shall comply with the maximum hours
of labor, minimum rates of pay, and other condition- of employment
al)pproveed or prescribed by the President."
SECTION 2. No person under 16 years of age shall be employed in
the Industry, nor any one under 18 years of age at operations or oc-
cupations hazardous in nature or detrimental to health. The Code
Authority shall submit to the Administrator within 90 days after
the effective date, a list of such occupations. In any State an em-
ployer shall be deemed to have complied with this provision if he
shall have on file a certificate or permit duly issued by the Authority
in such State empowered to issue employment or age certificates or
permits, showing that the employee is of the required age.
SECTION 3. Within each State this Code shall not supersede any
laws of such State imposing more stringent requirements on em-
p)loyers regulating the age of employees, wages, hours of work, or
health, fire, or general working conditions than under this Code.
SECTION 4. Employers shall not reclassify employees or duties of
occupations performed by employees or engage in any other sub-
terfuge so as to defeat the purposes of the Act.
SECTION 5. Each employer shall post in conspicuous places full
co,)is of this Code.
ART'rICLE VIL-ORGANIZATION, POWERS AND DUTIES OF THE CODE
ORGANIZATION AND CONSTITUTION
SECTION 1. A Code Authority is hereby established to administer
this Code. Said Code Authority shall consist of five (5) members
to be elected by the members of the Industry in meeting assembled,
by a majority vote as defined in Article II, Section 8. In addition
to the membership of said Code Authority as above provided, the
Administrator may appoint not to exceed three (3) members.
SECTIO- 2. 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 of the Code
SECTION 3. There shall be no inequitable restrictions imposed on
membership in the Association, and the Association shall submit to
the Administrator true copies of its Articles of Association, By-
Laws, Regulations and any Amendments when made thereto, to-
gether with such other information as to membership, organization
and activities as the Administrator may deem necessary to effectuate
the 1)purposes of the Act.1
SECTION 4. Members of the Industry shall be entitled to partici-
pate in and share the benefits of the activities of the Code Authority
and to participate in the selection of the members thereof by assent-
ing to and coniplying with the requirements of this Code and assist-
ing with their reasonable share of the expenses of its administration.
Such reasonable share of the expenses of administration shall be
determined by the Code Authority, subject to review by the Adnmin-
istrator, on the basis of volume of business and/or such other factors
as may be deemed equitable.
I Se paragraph 2 of order approving this Code.
SECTION 5. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor
shall any member of the Code Authority be liable in any manner to
anyone for any act of any other member, officer, agent, or employee
of the Code Authority. Nor shall any member of the Code Author-
ity exercising reasonable diligence in the conduct of his duties here-
under be liable to anyone for any action or omission to act under
the Code, except for his own wilful miitfeeance or non-feasance.
ARTICLE VII-PowERs AND DU-TIES OF CODE AUTHORITY
SECTION 1. The Code Authority shall have the following further
duties and powers to the extent permitted by the Act:
SECTION 2. The Code Authority may adopt by-laws and rules an(l
regulations for the conduct of its business and for the administration
of this Code.
SECTION 3. The Code Authority shall appoint a manager, who
subject to the disapproval of the Industry and/or the Administra-
tor. shall (a) attempt to determine, within the Induw-try as to whether
any member has or has not adhered to the provisions of this Code;
(b) act as the Industry's representative in all dealing;, with the
Government; (c) conduct any investigation or survey within this
Industry that might be of general benefit to this Industry; (d)
collect all data, information, statistics and records necessary that
the policy of the Act may be effectuated. The manager shall be in
no way engaged in the Industry or connected with any member
SECTION 4. In order that the Administrator may be informed
of the extent of observance of the provisions of this Code and of
the extent to which the declared policy of the Act is being effectuated
in the Industry as herein defined, the Code Authority shall make
such reports as the Administrator may require, and each employer
shall make such sworn or unsworn reports to the Manager, periodi-
cally, as the Code Authority may direct, on wages, hours of labor,
conditions of employment, number of employee.-. production, ship-
ments, sales, stocks, prices, and other matters pertinent to the pur-
poses of this Code as the Code Authority may require. No indi-
vidual reports shall be disclosed to any other member of the in-
dustry or any other party except to such governmental agencies
as may be designated by the Administrator.
SECTION 5. In addition to information required to be submitted
to the Code Authority, all or any of the persons subject to this
Code shall furnish such statistical information as the Administrator
may deem necessary for the purposes recited in Section 3 (a)
of the Act to such Federal and State agencies as the Administrator
may designate; nor shall anything in this Code relieve any person
of any existing obligation to furnish reports to Government, agencies.
SECTION 6. The Code Authority may appoint a trade practice com-
mittee which shall meet with the trade practice committees ap-
pointed under such other codes as may be related to the Industry
for the purpose of formulating fair trade practices to govern the
relationships between production and distribution employers under
this Code and under such others to the end that such fair trade
practices may be proposed to the Administrator as amendments to
this Code and such other Codes.
SECTION 7. Any and all information furnished to the Manager
or the Code Authority shall be confidential and shall not be divulged
to any member except in summary, but shall be available to the
Administrator upon request.
SECTION 8. The Code Authority may from time to time appoint
such sub-commnittees or designate such agencies, and may delegate to
any of them such of its powers and duties, as it shall deem neces-
sary or proper in order to effectuate the provisions and purposes
of this Code.
SECTION 9. The Code Authority shall study the effect of the pro-
visions of this C(ode on the industry and consider proposals for
amendments or modifications and make recommendations thereon
from time to time to the AdmLinistrator which amendments or modifi-
cations shall be effective as part of the Code upon approval by the
Administrator after such notice and hearing as he may specify.
SECTION 10. Upon complaint of any member or upon its own initi-
ative, the Code Authority shall investigate alleged violations of this
Code under such rules and regulations as the Administrator may
SECTION 11. If the Administrator shall determine that any action
of the Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by the Code
Authority or agency pending final action which shall not be effective
unless the Administrator approves or unless he shall fail to disap-
prove after thirty (30) days' notice to him of intention to proceed
with such action in its original or modified form.
SECTION 12. The Code Authority shall cooperate with the Ad-
mininitrator in regulating the use of any NRA insignia solely by those
members of the Industry who have assented to, and are complying
with, this Code.
ARTICLE VIII-TRADE PROVISIONS
SECTION 1. When the Code Authority determines that an emer-
gency exists in this Industry and that the cause thereof is destructive
price cutting such as to render ineffective or seriously endanger the
maintenance of the provisions of this Code, the Code Authority may
cause to be determined the lowest reasonable cost of the products of
this Industry, such determination to be subject to such notice and
hearing as the Administrator may require. rThe Administrator may
approve, disapprove, or modify the determination. Thereafter, dur-
ing the period of the emergency, it shall be an unfair trade practice
for any member of the Industry to sell or offer to sell any products
of the Industry for which the lowest reasonable cost has been deter-
mined at such prices or such terms or conditions of sale that the
buyer will pay less therefore than the lowest reasonable cost of such
products. When it appears that conditions have changed, the Code
Authority upon its own initiative or upon the request of any inter-
ested party, shall cause the determination to be reviewed.
SECTION 2. The Code Authority shall require that for any product
of the Industry and for any class of customer, it having been the
general recognized practice to sell such product to such customer
on the basis of printed matter, price lists and fixed terms of pay-
ment which arc distributed to the trade, each manufacturer and
distributor of such product shall within ten (1d) day-, after notice
from the Code Authority file with the Cod, Authority a net price
list individually prepared by him showing his current prices and
terms of payment and the Code Authority shall immediately and
simultaneously send copies thereof to all known manufacturers and
national distributors of such specified products. Revised price lists
may be filed from time to time thereafter with the manager by any
manufacturer and national distributor of such product to be shipped
and to become effective upon the date specified therein, but such
revised price lists shall be filed with the manager ten (10) days in
advance of the effective date unless the Code Authority shall author-
ize a shorter period. Copies of revised price lists with notice of the
effective date specified shall immediately and simultaneously be sent
to all known manufacturers and national distributors of such product
who therewith may file, if they so desire, comparable revision, of
their price lists which shall become effective upon the date when
the revised price list first filed shall go into effect. The respective
price lists for each class of trade shall be available at all reasonable
times to the bona fide members of each class of trade served by the
Industry, provided, however, that consumers' prices shall be open
to the public.2
SECTION 3. Each member shall send the Manager two (2) copies
each of his price lists, discount schedules, and catalogs and as many
additional copies as he may require for distribution to other members.
SECTION 4. (a) All containers used by the Members of the Industry
for packing machine-applied staples shall be identified by the name
of the manufacturer or the distributor who makes or sells the staples.
The name of the manufacturer or distributor shall be imprinted or
stamped on the container or on the label which shall be securely
attached to the container. The name of the manufacturer or distribu-
tor shall appear on the container or label in clear, easily read type
of a size not less than 12 point.
(b) Containers or labels may be imprinted for the customers of
the manufacturer or d(listril)butors which may carry the name and/or
trade mark of the customer and may, if the customer so desires, carry
the name and/or the trade mark of the manufacturer making the
staples or the distributor making the sale, but such labels may not
carry the name of any other manufacturer or the name of any other
manufacturer's product, or the name of any other distributor, or
other distributor's product.
ARTICLE IX-UNFAIR TnR.\DE PRACTICES
Gnm,)al Defitim.-For all purposes of the Code, the acts de-
-cribed in this Article shall constitute unfair practices. Any member
of the Industry who shall directly, or indirectly through any officer,
employee, agent or representative, knowingly use, employ, or permit
SSee paragraph 2 of order approving this Code.
to be employed any of such unfair practices shall be guilty of a
violation of the Code.
SECTION 1. No goods sold shall be invoiced at other than the true
SECTION 2. No member of this Industry shall disseminate false
or miisleading information relative to competitors' products, selling
prices, credit standing, ability to perform service, or labor conditions
among competitors' employees.
SECTION 3. No member shall imitate or simulate any trade mark,
trade name, numerals with or without letters, package, brand, or
label of a competitor in such degree as to deceive or have the tendency
to decive customer-.
SECTION 4. No member of this Industry shall circulate, not in good
faith, but for the purpose of harassing and intimidating customers,
threats of suits for the infringement of patents or trade marks among
customers of a competitor.
SECTION 5. No member of this Industry shall induce or attempt
to induce the breach or abandonment of any contract between
another member of the Industry and his customer.
SECTION 6. No member of the Industry shall give, permit to be giv-
en, or directly offer to give, anything of value for the purpose of influ-
encing or rewarding the action of any employee, agent, or representa-
tive of another in relation to the business of the employer of such
employee, the principal of such agent or the represented party, with-
out the knowledge of such empl)loyer, principal or party. Commercial
bribery provisions shall not be construed to l)rohibit free and general
distribution of articles commonly used for advertising except so far
as .-iich articles are actually used for commercial bribery as herein-
SECTION 7. No member of the Industry shall use advertising or
selling methods or credit terms which have the capacity or tendency
to mislead the customer or prospective customer.
SrCTION 8. No member of the Industry shall use the name of any
other member of the Industry or the name of any product made by
any other member of the Industry on his containers or in his
SECTION 9. No member shall violate directly or indirectly, the
provisions of this Article by cooperating with, or using a distributor
for the purpose of evasion.
ARTICLE X-EXPORT SALES
SECT(rION 1. The provisions of this Code concerning sales shall not
apply to export sales of any product, or to sales of any product des-
tined ultimately for export. The term "eexport" shall include
shipments to foreign countries and to the territories and possessions
of the United States.
SECTION 1. No provision in this Code shall be interpreted or ap-
plied in such a manner as to (a) permit monopolies or monopolistic
practices, (b) permit or encourage unfair competition, (c) eliminate,
discriminate against, or oppress small enterprises.
Violation of any provisions of this Code or any f ,Ose statement or
report made to the Administrator, or the Code Authority after de-
cision thereon by the Administrator, shall constitute an unfair
method of competition and the offender shall be subject to the penal-
ties provided by the Act.
ARTICLE XIII-MO rDIFI'CATIO NS
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 and specifically but without limitation, to
the right of the President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
SECTION 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 the approval of the President.
ARTICLE XIV-SEGREGATION OF INDUSTRY
If any member of the Machine-Applied Staple and Stapling Ma-
chine Industry is also a member of any other Industry, the provisions
of this Code shall apply to and affect only that part of his business
to which this Code applies.
ARTICLE XV-EFFECTIVE DATE
This Code shall be effective as the Code of Fair Competition for
the Machine-Applied Staple and Stapling Machine Industry on the
second Monday after its approval by the President.
Approved Code No. 327.
Registry No. 139941.
UNIVERSITY OF FLORIDA
UII3 1262 0885IIllUI1 I8054lill
3 1262 08851 8054