Code of fair competition for the animal glue industry as approved on August 23, 1934

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Material Information

Title:
Code of fair competition for the animal glue industry as approved on August 23, 1934
Portion of title:
Animal glue industry
Physical Description:
p. 101-115 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Bone products -- Law and legislation -- United States   ( lcsh )
Glue -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Approved Code No. 504."
General Note:
"Registry No. 601-01."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
oclc - 63654756
ocm63654756
System ID:
AA00022791:00001

Full Text



Approved Code No. 504


Registry No. 601-01


NATIONAL RECOVERY ADMINISTRATION





CODE OF FAIR COMPETITION

FOR THE


ANIMAL GLUE INDUSTRY


AS APPROVED ON AUGUST 23, 1934


WE DO OUR PART


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


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
























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. 504 Registry No. 601-01
ERRATA SHEET

CODE OF FAIR COMPETITION
FOR THE

ANIMAL GLUE INDUSTRY

As Approved on August 23, 1934
Article IV, Section 2 (b) in the code as printed reads as follows:
Employees of the classes mentioned in Subsection (e) and (f)
of Section 1 of Article III who shall be paid not less than at the rate
of."
This should be changed to read:
"Employees of the classes mentioned in Subsections (e) and (f)
of Section 2 of Article III who shall be paid not less than at the
rate of."
87141 *-1181-O-34 (1)


U. S. GOVERNMENT PRINTING OFFICE- 1994















Approved Code No. 504


CODE OF FAIR COMPETITION
FOR THE

ANIMAL GLUE INDUSTRY

As Approved on August 23, 1934


ORDER
APPROVING CODE OF FAIR COMPETITION FOR THE ANIxAL GLUE
INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Animal Glue Industry, and hearing having
been duly held thereon and the annexed report on said Code, con-
taining findings with respect thereto, having been made and directed
to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
resident, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved; provided, how-
ever, that the provisions of Article III, Sections 1, 2 (e), (f) and
(g) shall remain in force and effect for a period of sixty days be-
ginning with the effective date of this Code and at the termination
of said period shall be superseded respectively by the following
provisions, unless on or before the termination of such sixty day
period, the Code Authority shall amend, or modify the present
Sections 1, 2 (e), (f) and (g), or justify the continuation of the
same, whereupon, said provisions in their present form or as amended
or modified shall become effective upon my approval:
1. No employee shall be permitted to work in excess of forty (40)
hours per week or eight (8) hours in any one day, except that em-
ployees may be permitted to work forty-eight (48) hours in any
calendar week, provided that not less than one and one-third times
the normal wage rate shall be paid to employees for all hours worked


81814-1044-103-34


(101)





102


in excess of forty (40) in any one calendar week or eight (8) in
any one day.
2 (e). Accounting, clerical, office, store, shipping service or inside
sales employees, who shall not, however, be permitted to work in
excess of forty (40) hours per week, except that in any one week's
period in any one month not in excess of forty-eight (48) hours in
any calendar week nor in excess of eight (8) hours in any one day to
permit billings to be made and inventories to be taken.
2 (f). Employees on automotive or horse-drawn passenger, ex-
press, delivery, or freight service, who shall not, however, be per-
mitted to work in excess of forty-five (45) hours per week, nor in
excess of nine (9) hours in any one day, except upon receiving com-
pensation of time and one-third for all hours worked in excess of
those prescribed.
2 (g). Engineers, and firemen who shall not, however, be per-
mitted to work in excess of forty-ive (45) hours in any one calendar
week, nor in excess of nine (9) hours in any one day, unless com-
pensated by payment of time and one-third for all hours worked in
excess of those prescribed.
HUGH S. JOHNSON,
Administrator for Indstrial Recovery.
Approval recommended.
GEO. L. BERRY,
Division Administrator.
WASHINGTON, D.C.)
August 23, 1934.












REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: A Public Hearing on the Code of Fair Competition for the
Animal Glue Industry, submitted by the National Association of
Glue Manufacturers, Inc., was conducted in Washington on the 4th
of April, 1934, in accordance with the provisions of the National
Industrial Recovery Act. This Association claims to represent
ninety-nine (99%) per cent of the Industry by volume of business.
THE INDUSTRY
The Animal Glue Industry includes the manufacture of glues
made from materials of animal orion other than casein. The In-
dustry is divided into the Hide Glue and Bone Glue Divisions, each
using a different manufacturing process and competing in market-
ing problems in few instances. There are about twenty-five concerns
in the Industry. Some of the concerns are independent, some are
connected with the meat packing or the leather industries. It is
estimated that approximately three thousand persons, including sales
and office employees, were engaged in the Animal Glue Industry dur-
ing its busy season of 1929. Annual sales were estimated as about
$20,000,000 in 1928. Sales decreased sharply between 1928 and 1932,
but began to improve during early 1933 and increased in the second
half of 1933 to nearly 80% of the 1929 dollar volume.
PROVISIONS OF THE CODE AS TO WAGES AND HOURS

The Code specifies, with certain exceptions, that no employee
shall be permitted to work in excess of an average of forty hours
per week in any six months' period, nor in excess of forty-eight hours
in any one calendar week. Provision is made for payment of time
and one-third for all hours worked in excess of eight in any one day
or in excess of forty in any one calendar week.
There are excepted from the basic work week employees who re-
ceive thirty-five dollars or more per week and who are employed in a
technical or professional capacity but not including skilled operating
personnel; employees in a managerial, supervisory or executive
capacity; supervisors or highly skilled workers in continuous proc-
esses where restriction of hours would unavoidably reduce produc-
tion; outside salesmen. Employees engaged in emergency mainte-
nance and emergency repair work shall receive payment of time and
one-third for all hours worked in excess of forty in any one week or
eight hours in any day. Watchmen have a maximum work week of
fifty-six hours, however, they are not permitted to work more than
six days in any seven day period.
(103)






104


Accounting, clerical, office, store, shipping service or inside sales
employees are not permitted to work in excess of an average of forty
hours per week in any three months' period nor in excess of eight
hours per day nor forty-eight hours in any one calendar week. Em-
ployees on automotive or horse drawn passenger service shall not be
permitted to work in excess of an average of forty-six hours per
week in any three months' period, nor in excess of nine hours in any
one day nor forty-eight hours in any calendar week.
The Code provides for a minimum wage of forty (40) cents per
hour; except employees engaged in light or nonhazardous work, such
as wrapping, packaging and labeling who shall not be paid less than
at the rate of thirty-five (350) cents per hour; employees on account-
ing, clerical, office, store, shipping service or inside employees and
employees on automotive or horse-drawn passenger express, delivery
or freight service who shall not be paid less than fifteen ($15.00)
dollars per week in any city of over 500,000 population or in the
immediate trade area thereof or fourteen ($14.00) dollars per week
in any other part of the United States; messengers, junior clerks
and others doing a junior grade of office or clerical work, who shall
not exceed five (5%) per cent of total number of employees, who
shall receive not less than twelve ($12.00) dollars per week.
The Code provides that a minimum rate of pay shall apply irre-
spective of whether an employee is actually compensated on a time
rate, piece work or other basis.
The Code further provides that no person under sixteen (16) years
of age shall be employed in the Industry, and that no person under
eighteen (18) years of age shall be employed in a hazardous occupation.

ECONOMIC EFFECTS OF THE CODE
It has been reported that in 1929 the Industry employed 3000 per-
sons, and had annual sales of about $20,000,000 in 1928. In 1933 the
Industry reported but 1500 employees, however, in April 1934 it is
estimated that 3000 persons were employed and in the last half of
1933 the sales volume was 80% of that in 1929.
The minimum wage of forty cents per hour is about equal to that
of 1929 and considerably above that paid in the Industry before the
adoption of the President's Reemployment Agreement.
The Code provisions will reduce the average hours per week by
twenty-eight per cent from the 1929 peak.
Since most of the firms are now operating under the Code provi-
sions only a relatively small further increase in employment can be
expected, but it is estimated that an increase in payrolls will amount
to about ten per cent above the figure for April 1934.

FINDINGS
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all of 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






105


removal of obstructions to the free flow of inter-state and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and 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
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 associa-
tion is an industrial association truly representative of the aforesaid
Industry; and that said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, this Code of Fair Competition for the Animal
Glue Industry has been approved.
Respectfully,
HUGH S. JOHNSON,
Administrator.
AUGUST 23, 1934.












CODE OF FAIR COMPETITION FOR THE ANIMAL GLUE
INDUSTRY
ARTICLE I-PuRnoss.

To effect the policies of Title I of the National Industrial Recov-
ery Act the following provisions are established as a Code of Fair
Competition for the Animal Glue Industry, and shall be the stand-
ard of fair competition for such Industry and shall be binding
upon every member thereof.

ARTICL-E II-DEFINITIoNs

SECTION 1. The term "Animal Glue Industry as used herein
means and includes the manufacture and sale by the manufacturer
of glue made from materials of animal origin. There shall be
excepted herefrom casein.
SECTION 2. The term "Member of the Industry" includes 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, either directly or indirectly or through a sub-
sidiary or subsidiaries.
SECTION 3. The term "Hide Glue Division as used herein, means
that division of the Industry engaged in the manufacture of glue
made from tissues and skins of animal origin, not including, how-
ever, glue made from bones.
SECTION 4. The term "Bone Glue Division" as used herein, means
that Division of the Industry engaged in the manufacture of glue
made from bones.
SECTION 5. The term "Member of the Hide Glue Division" in-
cludes any member of the Industry engaged in the Hide Glue Divi-
sion as hereinabove defined.
SECTION 6. The term "Member of the Bone Glue Division" in.
cludes any member of the Industry engaged in the Bone Glue Divi-
sion as hereinabove defined.
SECTION 7. The term ".employer" as used herein includes anyone
by whom such employee is compensated or employed.
SECTION 8. The term "employee as used herein includes any
and all persons engaged in the Industry, however compensated,
except a member of the Industry.
SECTION 9. 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.
(106)






107

AImcLE III 1-HouRs
MAXIMUM HOURS
SEcTIoN 1. No employee shall be permitted to work in excess of
an average of forty (40) hours per week in any six (6) months'
period, nor in excess of forty-eight (48) hours in any one calendar
week, except as hereinafter provided. Not less than one and one-
third (11/3) times the normal wage rate shall be paid to employees
for hours worked in excess of forty (40) hours in any one calendar
week or in excess of eight (8) hours in any one day.
EXCEP'TION AS TO HOURS
S ETIO- 2. The foregoi)g provisions regarding maximum hours
shall not apply to the following:
(a) Employees who receive thirty-five ($35.00) dollars or more
per week and who are employed in a technical or professional
capacity (not including skilled operating personnel), employees in
a managerial, supervisory, or executive capacity, or highly skilled
workers in continuous processes where restriction of hours would
unavoidably reduce production.
(b) Outside salesmen.
(c) Employees engaged in emergency maintenance and/or emer-
gency repair work, involving breakdown or protection of life or
property, who shall, however, be paid not less than one and one-
third (11/3) times the normal wage rate for hours worked in ex-
cess of forty (40) hours in any one week or in excess of eight (8)
hours in any one day.
(d) Watchmen, who shall not, however, be permitted to work in
excess of fifty-six (56) hours in any seven (7) day period, nor more
than six (6) days in any such period.
(e) Accounting, clerical, office, store, shipping service or inside
sales employees, who shall not, however, be permitted to work in
excess of an average of forty (40) hours per week in any three
(3) months' period, nor in excess of forty-eight (48) hours in any
calendar week, nor in excess of eight (8) hours in any one day.
(f) Employees on automotive or horse-drawn passenger, express,
delivery, or freight service, who shall not, however, be permitted to
work in excess of an average of forty-six (46) hours per week in any
three (3) months' period, nor in excess of forty-eight (48) hours in
any calendar week, nor in excess of nine (9) hours in any one day.
(g) Engineers, and firemen, who shall not, however, be permitted
to work in excess of forty-eight (48) hours in any one calendar
week, nor in excess of eight (8) hours in any one day.
EMPLOYMENT BY SEVERAL EMPLOYERS
SEc=roN 3. No employer shall knowingly permit any employee to
work for any time which, when totaled with that already performed
with another employer or employers exceeds the maximum per-
mitted herein.
See paragraph 2 of order approving this Code.
81814 i044--03 -34----2







108


STANDARD WEEK
SECTION 4. No employee shall be permitted to work more than
six (6) days in any seven (7) day period.
ARTICLE IV-1W"AGES

MINIMUM WAGES
SECTION 1. Except as hereinafter provided, no employee shall be
paid less than at the rate of forty (400) cents per hour.
EXCEPTIONS AS TO MINIMUM WAGES

S-ECTION 2. The foregoing provisions regarding minimum wage
rates shall not apply to the following:
(a) Employees engaged in light and nonhazardous work, such
as wrapping, packaging and labelling, who shall be paid not less
than at the rate of thirty-five (350) cents per hour.
(b) Employees of the classes mentioned in Subsections (e) and
(f) of Section 1 of Article III, who shall be paid not less than at
the rate of
$15.00 per week in any city of over 500,000 population, or in
the immediate trade area of such city, and
$14.00 per week in any other place.
(c) Messengers, junior clerks, or others doing a junior grade of
office or clerical work, who shall be paid not less than at the rate
of twelve ($12.00) dollars per week, but the number of such em-
ployees shall not exceed five (517) per cent of the total number of
office employees in any establishment.
PIECEWORK COMPE-SATIO-N-MINIMU3 WAGES

SECTION 3. This Article establishes a minimum rate of pay which
shall apply, irrespective of whether an employee is actually compen-
sated on a time rate, piecework or other basis.

WAGES ABOVE MINIMUM
SECTION 4. There shall be an equitable adjustment of all wages
above the minimum, and to that end, within thirty (30) days from
the approval of this Code, the Code Authority shall submit for the
approval of the Administrator a proposal for adjustment in wages
above the minimum. Upon approval by the Administrator, after
such hearing as he may prescribe, such proposal shall become binding.
as a part of this Code, provided, however, that in no event shall
hourly rates of pay be reduced.

FE MALE EMPLOYEES
SECTION. 5. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
employees.







109

HANDICAPPED PERSONS

SECTION 6. A person whose earning capacity is limited because of
age or physical or mental handicap may be employed on light work
at a wage below the minimum established by this Code if the em-
ployer obtains from 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.
Each employer shall file monthly with the Code Authority a list of
all such persons employed by him, showing the wages paid to, and
the maximum hours of work for such employee.

ARTICI V-GENERAL LABOR AND OTHER PROVISIONS

CHILD LABOR

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 thirty (30) days from the ap-
proval of this Code a list of such operations or occupations. In any
State an employer 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-
ment or age certificates or permits showing that the employee is of
the required age.
PROVISIONS FROM THE ACT

SECTION 2. (a) 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 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 or protection.
(b) No employee and no one seeking employment shall be re-
quired as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his own choosing. and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
EVASION THROUGH SUBTERFUGE

SECTION 3. No employer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge for the
purpose of defeating the purposes or provisions of the Act or of
this Code.
STANDARDS FOR SAFETY AND HEALTH

SECTION 4. Every employer shall provide for the safety and health
of employees during the hours and at the places of their employ-







110

ment. Standards for safety and health shall be submitted by the
Code Authority to the Administrator within six (6) months after
the effective date of the Code.
STATE LAWS

SECTION 5. No provision in this Code shall supersede any State
or Federal law which imposes on employers more stringent require-
ments 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.

POSTING
SECTION 6. All employers shall post and keep posted copies of
this Code in conspicuous places accessible to all employees. Every
member of the Industry shall comply with all rules and regulations
relative to the posting of provisions of Codes of Fair Competition
which may from time to time be prescribed by the Administrator.

DISMISSAL FOR COMPLAINT

SECTION 7. No employee shall be dismissed by reason of making a
complaint or giving evidence with respect to a violation of this
Code.
ARTICLE VI-ORGANIZATION, POWERS AND DUTIES OF THE
CODE AUTHORITY

ORGANIZATION AND CONSTITUTION
SECTION 1. To further effectuate the policies of the Act, a Code
Authority is hereby established and known as the Code Authority
of the Animal Glue Industry. In addition the Industry shall be
classified into two Divisions, known as (1) Hide Glue Division,
(2) Bone Glue Division, and each such Division shall have its own
Divisional Code Authority, composed of the members of the Code
Authority representing their respective Divisions, as hereinafter
provided.
SECTION 2. The Code Authority shall consist of seven (7) mem-
bers to be selected as follows: Three (3) members shall be selected
from the Hide Glue Division, by the vote of members thereof repre-
senting three-fourths in number of the members of the Hide Glue
Division and representing three-fo.i rths of the dollar sales volume
for the preceding calendar year of the members of the Hide Glue
Division entitled to vote. Three (3) members shall be selected from
the members of the Bone Glue Division by the vote of members
representing three-fourfhs in number of the members of the Bone
Glue Division, and members representing three-fourths of the dollar
sales volume for the preceding calendar year of the members of the
Bone Glue Division entitled to vote. The seventh member of the
Code Authority shall be without vote and shall be a person of their
own choosing and shall be chosen by the vote of members of the





111


Industry representing three-fourths in number of the members of
the Industry, and members representing three-fourths in dollar sales
volume for the preceding calendar year of the members of the
Industry entitled to vote.
SECTION 3. In addition to membership of the Code Authority, as
above provided, there may be three (3) members, without vote and
without compensation from the Industry, to be appointed by the
Administrator and to serve such terms as he may specify.
SECTION 4. Each frade or industrial association directly or in-
directly participating in the selection or activities of the Code Au-
thority shall: (a) Impose no inequitable restrictions on membership,
and (b) submit to the Administrator true copies of its articles of
association, by-laws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem neces-
sary to effectuate the purposes of the Act.
SEc rIoN 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 provide 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 ap-
propriate modification in the method of selection of the Code
Authority.
SECTION 6. If the Administrator shall at any time determine that
any action of the Code Authority or any agency thereof may be un-
fair 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 consid-
eration by the Code Authority or agency pending final action which
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 7. 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 employee 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 omssion to act under this Code,
except for his own wilful malfeasance or nonfeasance.
POWERS AND DUTIES

SECTION 8. 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 provi-
sions of this Code.
(a) To insure the execution of the provisions of this Code and pro-
vide for the compliance of the Industry with the provisions of the
Act.
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of the Code.






112


(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 Au-
thority, members of the Industry 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 Fed-
eral and State agencies as he may designate; provided that nothing
in this Code shall relieve any member of the Industry of any existing
obligations to furnish reports to any Government agency. No indi-
vidual report shall be disclosed to any other member of the Industry
or any other party except to such other Governmental agencies as
may be directed by the Administrator.
(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 co-
ordination of the administration of this Code with such other codes,
if any, as may be related to the Industry.
(f) 1. It being found necessary to support the Administration of
this Code, in order to effectuate the policy of the Act and to main-
tain the standards of fair competition established hereunder, 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 Industry;
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and obtain equitable con-
tribution as above set forth by all members of the Industry, and to
that end, if necessary, to institute legal proceedings therefore in its
own name.
2. Each 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 mei-
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 contribution) 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





113


contained in the approved budget except upon approval of the Ad-
ministrator; 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 any action or measures
deemed advisable, including further fair trade practice provisions
to govern members of the Industry in their relations with each other
or with other Industries; measures for industrial planning, and
stabilization of employment; and including modifications of this
Code which shall become effective as part hereof upon approval by
the Administrator after such notice and hearing as he may specify.
(h) To appoint a Trade Practice Committee which shall meet with
the Trade Practice Committees appointed under such other codes as
may be related to the Industry for the purpose of formulating fair
trade practices to govern the relationships between employers under
this Code and under such other Codes to the end that such fair trade
practices may be proposed to the Administrator as amendments to
this Code and such other Codes.
SEcMON 9. The members of each Division of the Industry, namely,
(a) Hide and (b) Bone, shall constitute a separate and distinct
Divisional Planning and Fair Practice Agency for the respective
Division; and each such Agency shall adopt rules and regulations
for the procedure and conduct of its members and representatives,
subject to the approval of the Administrator.
The Hide Glue Division, and the Bone Glue Division, shall be
independent and self-governing in all problems relating exclusively
to their respective Division. To this end each Agency shall:
(a) Consider all cases of alleged violations of the trade practice
provisions of this Code by a member or members of the particular
Division and make such recommendations thereon to the Code Au-
thority as it may deem advisable; and thereupon the Code Authority
shall be required to take such action as may be necessary in the
interest of the Division affected.
(b) To recommend to the Administrator after such notice and
hearing as he may prescribe such other or further provisions con-
cerning unfair methods of competition with respect to its own Di-
vision of the Industry; upon the approval thereof by the Adminis-
trator, the same shall become part of this Code and binding upon
all members of the Division concerned.
(c) With the approval of the Administrator thereto, after such
notice and hearing as he may prescribe, to make such amendments,
modifications and/or additions to this Code as shall apply to its own
particular Division of the Industry and as shall not lessen or im-
Sair the rights, powers or duties conferred by this Code upon the
ode Authority and/or other Divisions of the Industry.
(d) To propose to the Code Authority amendments and/or modifi-
cations of this Code, but no such amendments and/or modifications
shall be presented by such Code Authority for consideration by or
approval of the proper authority without first having been approved
by three-fourths of the members of each of the respective Divisions
of the Industry, and without having been concurred in by members






114


of such respective Division representing three-fourtM8 of the dollar
sales volume of such respective Divisions for the preceding calendar
year.
ARTICLE VII-UNFAIR METHODS OF COMPETITION
SECTION 1. The following practices constitute unfair methods of
competition and shall constitute a violation of this Code:
(a) To procure, by fraud, misrepresentation or other unfair
means, any information concerning the business of such member
which is properly regarded by it as a trade secret or confidential
within its organization other than information relating to a violation
of any provision of the Code.
(b) To give, permit to be given, or 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 of the employer of such employee, the principal of such
agent or the represented party, without the knowledge of such
employer, principal or party. This provision shall not be construed
to prohibit free and general distribution of articles commonly used
for advertising except so far as such articles are actually used for
commercial bribery as hereinabove defined.
(c) To promise or arrange reciprocity of any kind for the pur-
pose of influencing a sale.
(d) To imitate, or simulate any design, style, mark or brand used
by any other member of the Industry in a manner which is intended
to or does deceive or mislead purchasers or prospective purchasers.
(e) To disseminate, publish, or circulate any false or misleading
information relative to any product or price for any product of
any member of the Industry, or the credit standing of ability of
any member thereof, or the performance of any work or manufac-
ture or production of any product, or the conditions of employment
among the employees of any member thereof.
(f) Wilfully to induce or attempt to induce the breach of exist-
ing contracts between competitors and their customers by any false
or deceptive means, or interfere with or obstruct the performance of
any such contractual duties or services by any such means, with the
purpose and effect of hampering, injuring or embarrassing com-
petitors in their business.
(g) To make or give to any purchaser of any product any guar-
tee or protection in any form against decline in the market price
of such product.
(h) To give free samples in excess of five (5) pounds of any one
grade.
(i) To deliver the products thereof on consigment except to an
affiliated company of such member. An affiliated company shall
mean a company in which a member of the Industry has a voting
control through the record or equitable title of the voting stock
thereof, or has control of such company in any other manner.
(j) To make false statements or reports, written or oral, required
pursuant to any of the provisions of this Code or required by the
Administrator.





115


(k) Knowingly to withhold from or insert in any quotation or
invoice any statement that makes it inaccurate in any material
particular.
TRADE TERMS
SECTION 2. (a) All invoices covering domestic sales by members of
the Industry shall be due and payable within thirty (30) days from
the date of invoice, provided, however, that there shall be twenty
(20) days free time for shipments from the Atlantic ports to Pacific
ports or vice versa made by a member directly to a bona fide pur-
chaser, and five (5) days free time for shipments made from Eastern
territory to the Mississippi Valley Section or vice versa.
(b) The discount which may be allowed for cash shall riot exceed
two (2%) per cent for payment within ten (10) days from date of
invoice, or for payment in cash or invoices dated from the first to
the fifteenth of any month, inclusive, and paid on or before the
25th of each month, or for invoices dated from the sixteenth to
the end of any month, inclusive, and which are paid on or before the
tenth of the succeeding month.
ARTICLE VIII-MODIFICATION
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of Subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule or regula-
tion issued under said Act.
SECTION 2. Any member of the Industry may propose an amend-
ment to this Code to the Code Authority or to the Administrator.
Each amendment proposed to the Code Authority shall be submitted
to a meeting of the Codp Authority, and if the Code Authority shall
approve thereof the amendment so proposed shall be submitted to
the members of the Division or Divisions of the Industry affected
thereby and eligible to vote. If at such meeting, the members of the
Industry representing three-fourths of the members of such Divi-
sion or Divisions and concurred in by members of such respective
Division or Divisions representing three-fourths of the dollar sales
volume of such respective Division or Divisions for the preceding
calendar year, shall vote in favor of the adoption of such amend-
ments, such amendments shall be submitted by the Code Authority
to the Administrator for approval.
ARTICLE IX-MONOPOLIES
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
ARTICLE X-EFFECTIVE DATE
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 504.
Registry No. 601-01.










































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