Citation
Code of fair competition for the hatters' fur cutting industry as approved on July 3, 1934

Material Information

Title:
Code of fair competition for the hatters' fur cutting industry as approved on July 3, 1934
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
Supt. of Documents
Publication Date:
Language:
English
Physical Description:
12 p. : ; 23 cm.

Subjects

Subjects / Keywords:
Hatter's fur -- Law and legislation -- United States ( lcsh )
Hatters -- Law and legislation -- United States ( lcsh )
Industries -- Law and legislation -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

General Note:
"Approved Code No.476 ; Registry No.223-10"

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004851796 ( ALEPH )
63654297 ( OCLC )

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NATIONAL RECOVERY ADMINISTRATION






CODE OF FAIR COMPETITION

FOR THE



HATTERS' FUR, CUTTING


INDUSTRY


AS APPROVED I. 19 I

AS APPROVED 0O JULY 3. 1934

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UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


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proved Code, No. 476


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This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.O., and by district offices of the Bureau of Foreign
and Domestic Commerce.
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Seattle, Wash.: 809 Federal Office Building.














Approved Code No. 476


CODE OF FAIR COMPETITION
FOR THE

HATTERS' FUR CUTTING INDUSTRY

As Approved on July 3, 1934


ORDER

CODE OF FAIR COMPETITION FOR THE HATTERS' FUR CUTTING 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 Hatters' Fur Cutting Industry, and a
hearing 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 United
States, I, Hugh S. Johnson, 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 purposes of said
Title of said Act; and do hereby order that said Code of Fair
Competition be and it is hereby approved, subject however, to the
following conditions:
1. That the provisions of this Code shall be in full force and effect
for a period of ninety (90) days from the effective date hereof.
Prior to the expiration of said period the Code Authority shall make
recommendations to the Administrator in regard to the continuance
or amendment of any or all provisions of this Code.
HUGH S. JOHNSON,
Adm inistrator for Inlustrial Recovery.
Approval recommended:
SOL A. ROSENBLATT,
Divis-ion Administrator.
WASHINGTON, D.C.,
July 3, 193.4.
7172' '--820-13-34 (1 '












REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: The Public Hearing on the Code of Fair Competition for the
Hatters' Fur Cutting Industry as proposed by Hatters' Fur Cutters
Association of the U. S. A., was conducted in the Commerce Building,
Washington, D.C. on April 19, 1934.
Every person who requested an appearance was fairly heard in
accordance with regulations of the National Recovery Administra-
tion. The Code has the approval of the Industrial and Labor Ad-
visory Boards of the National Recovery Administration and of the
Legal Division. The (ode Conmmittee, upon authorization of the
Association, has also gien assent to the final draft. of the Code on
behalf of the Industry.
The Industry, as defined in the Code, includes the manufacturing,
selling and distributing by manufacturers of hatters' furs, both blown
and unblown, for any purposes for which hatters' fur can be used.
The raw material of the Industry consists mainly of imported hare
and rabbit skins, which skins are processed to give the fur fibre felt-
ing qualities. The fur fibre is then cut away from the skin, packed
and sold to the manufacturers of fur felt hat bodies. This Industry
is entirely isolated from other industries processing fur, principally
because this Industry performs no real dressing, tanning, or dyeing
operation in any state of its manufacture, and it therefore does not
require the type of skilled labor employed in the other fur manufac-
turing industries. In another sense, its isolation is also caused by
the fact that eighty to ninety per cent of its product is sold to a
single class of customers, the aforesaid manufacturers of fur felt hat
bodies. Ninety per cent of the Industry is located within a radius of
150 miles of New York City, and the hat manufacturing center of
Danbury, Connecticut, contains fifty per cent of the Industry.
The number of concerns engaged" in this Industry in 1933 was
thirty-five, which concerns employed a total of approximately 2,000
employees. The number of employees at the end of 1933 represented
an increase of approximately fifteen per cent over the number in early
1933. This reemployment was caused largely by the operation of the
President's Reemployment Agreement. From the figures of years
prior to 1929 as compared with 1033, it would seem that although the
employers have suffered a substantial decrease in dollar volume of
business, employment decreased only fractionally in the Industry.
The dollar volume of sales in 1929 was over $18,000.000 while in 1933
the volume of business was approximately one-third of that.
The submitting Association has been organized for thirty-five years
and has given evidence of being properly equipped to assist in the
administration of this Code. It represents approximately eighty per






3

cent of the number of manufacturers in the United States and
approximately ninety-five per cent of the Industry by volume of
business and number of employees.

RESUME OF THE CODE
Article I gives the purpose of the Code.
Article II sets forth certain definitions.
Article III contains the maximum hour provisions of the Code.
Article IV establishes the minimum wage rates for employees of
the Industry.
Article V sets forth general labor provisions.
Article VI provides for the organization of the Code Authority
and defines its powers and duties.
Article VII defines trade practices which are unfair and shall be
eliminated.
Article VIII provides for modification of the Code.
Article IX states that the Code shall not permit monopolies.
Article X deals with price increases.
Article XI specifies the effective date.

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 the proceed-
ings 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 indus-
try 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 elimi-
nating unfair competitive practice, by promoting the fullest pos-
sible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant
association is an industrial association truly representative, of the
aforesaid industry; and that the said association imposes no inequi-
table restrictions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.








(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
Code.
For these reasons the Code has been approved.
Respectfully,
HUGH S. JOHNSON,
Administrator.
JULY 3, 1934.












CODE OF FAIR COMPETITION FOR THE HATTERS' FUR
CUTTING INDUSTRY

ARTICLE I-PuRPOSES

To effect the policies of Title I of the National Industrial Re-
covery Act, this Code is established as a Code of Fair Competition
for the Hatters' Fur Cutting Industry, and its provisions shall be
the standards of fair competition for such Industry and be binding
upon every member thereof.

ARTICLE II-DEFINITION

SECTION 1. The term Hatters' Fur Cutting Industry ", or the
term Industry as used herein, includes the manufacturing, selling
and/or distributing by manufacturers of hatters' furs, both blown
and unblown, for any purposes for which hatters' fur can be used,
and such related branches or subdivisions as may from time to time
be included under the provisions of this Code.
SECTION 2. The term member of the Industry ", as used herein,
includes any individual, partnership, association, corporation, or
other form of enterprise engaged in the Industry, either as an em-
ployer or on his or its own behalf.
SECTION 3. The term "employee ", as used herein, includes anyone
engaged in the industry in any capacity, receiving compensation for
his services, irrespective of the nature or method of payment of such
compensation, except a member of the Industry.
SECTION 4. The term "employer ", as used herein, includes anyone
by whom any such employee is compensated or employed.
SECTION 5. The term President ", "Act ". and h"Administrator ",
as used herein shall mean respectively the President of the United
States, the National Industrial Recovery Act, and the Administrator
for Industrial Recovery.
SECTION 6. The term "Association" as used herein shall mean
the Hatters' Fur Cutters Association of the U.S.A.

ARTICLE III-HouRs OF LABOR

SECTION 1. NO employee shall be permitted to work in excess, of
forty (40) hours in any one week or eight (8) hours in any twenty-
four (24) hour period, except as herein otherwise provided.
SECTION 2. The provisions of this Article shall not apply to outside
salesmen or to persons employed exclusively in a managerial or
executive capacity who earn regularly thirty-five ($35.00) dollars or
more per week.
SECTION 3. Watchmen shall not be permitted to work in excess
of eighty-four (84) hours in any two week period; provided that







watchmen shall not be employed for direct labor on manufacturing
operations.
SECTION 4. No employee shall be permitted to work more than
five (5) days in any seven (7) day period.
SECTION 5. No employer shall knowingly permit any employee to
work for any time which, when added to the time spent at work
for another employer or employers in this industry, exceeds the
maximum permitted herein.
SECTION 6. Any employer who does the work of a manufacturing
or production employee shall be subject to the provisions of this
Code as to hours of labor.
SECTION 7. The use of foremen on productive operations shall be
investigated by the Code Authority, and it shall make recommen-
dations to the Administrator with respect to the regulations of such
use, which upon his approval, after such notice and hearing as he
may provide, shall become binding provisions of this Code.

ARTICLE IV-WAGES

SECTION 1. No employee shall be paid less than at the rate of
thirty-five (35) cents per hour, except as herein otherwise provided.
SECTION 2. No person employed in clerical or office work shall be
paid at less than the rate of fourteen dollars($14.00) per week.
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.
SECTION 4. There shall be an equitable adjustment of all wages
above the minimum, and to that end, within sixty (60) days from the
approval of this Code, the Code Authority shall submit for the
approval of the Administrator a proposal for adjustment in semi-
skilled and skilled wages above the minimum. Upon approval by
the Administrator, after such notice and hearing as he may prescribe,
such proposal shall be a. part of this Code; provided, however, that in
no event shall hourly rates of pay be reduced.
SECTION 5. 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 employ-
iment at such wages and for such hours as shall be stated in the certifi-
cate. Each employer shall file monthly with the Code Authority a
list of all such persons employed by him, showing the wages paid to,
anrd the maximum hours of work for such employee.
SECTION G. Female eamplOyees performing substantially the same
work as male employees shall receive the same rate of pay as male
e m ployees.
SECTION 7. The problem of learners in the Industry shall be stud-
ied by the Code Authority and recommendations made to the Admin-
istrator, which upon his approval, after such notice and hearing as
he may specify, shall become binding provisions of this Code.
(a) The number of learners employed by a member shall be lim-
ited to five (5ic) per cent of the total number of employees engaged
in manufacturing operations, except in special instances as may be







determined by the Code. Authority, subject to the approval of the
Administrator; provided, however, that each member may employ at
least one learner.
(b) The minimum wage for learners shall be ten ($10.00) dollars
a week for their first two weeks in the Industry, and thereafter they
shall receive an increase of one ($1.00) dollar per week until they
reach the minimum wage.
(c) No person shall be considered a learner for longer than his
first five (5) weeks of employment in the Industry. Any time
worked by a learner in the Industry shall be deemed a part of such
learner's period of five (5) weeks, whether such time is worked con-
tinuously, or in more than one factory, or for more than one
employer, or at more than one kind of operation.

ARTICLE V-GENERAL LABOR PROVISIONs

SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry. No person under eighteen (18) years of
age shall be employed at operations or occupations which are hazard-
ous in nature or dangerous to health. The Code Authority shall
submit to the Administrator before August 1, 1934 a list of such
operations or occupations. In the event of a claim of alleged viola-
tion of this section, an employer shall be deemed to have complied
with the provisions of this section if he shall have on file and
shall submit a certificate of age issued by the duly authorized depart-
ment of the State in which the employer operates, showing the age
of the employee to be no less than the age required by this section.
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
employers 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 pro-
tection.
(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, 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.
SECTION 3. No employer shall reclassify employees or duties of
occupations performed for the purpose of defeating the provisions
of the Act or of this Code.
SECTION 4. Within sixty (60) days after the effective date of this
Code, the Code Authority shall appoint a committee to cooperate with
the United States Public Health Service and a committee appointed
by the Conference of State and Provincial Health Authorities of
North America, in formulating and recommending for the approval
of the Administrator, minimum standards of cleanliness, maintenance
of equipment, and other sanitary and health safeguards. Upon the
approval of such standards by the Administrator, members of the







Industry shall conform with such minimum standards, provided, how-
ever, that nothing contained in this section shall relieve any member
of the Industry from complying with any state or local laws, regula-
tion or ordinances, neither prior to the formulation and approval of
such standards, nor thereafter, if the requirements of such laws, regu-
lations or ordinances are more stringent than the minimum standards
approved by the Administrator pursuant to the foregoing provision.
In addition to the foregoing, each employer shall provide for the
safety of employees during the hours and at the places of their em-
ployment. Standards of safety shall be submitted by the Code Au-
thority to the Administrator within six (6) months after the effec-
tive date of this Code.
SECTION 5. No provision in this Code shall supersede any law
within any State which imposes more stringent requirements on em-
ployers as to age of employees, wages, hours of work, or as to safety,
health, or sanitary conditions, or insurance, or fire protection, or
general working conditions, than are imposed by this Code.
SECTION 6. All employers shall post and keep posted copies of this
Code in conspicuous places accessible to all employees. Every mem-
ber of the Industry shall comply with all rules and regulations rela-
tive to the posting of provisions of Codes of Fair Competition which
may from time to time be prescribed by the Administrator.

ARTICLE VI-ORGANIZATION, POWERS AND DUTIES OF
THE CODE AUTHORITY
SECTION 1. A Code Authority is hereby constituted to cooperate
with the Administrator in the administration of the Code as follows:
(a) Seven (7) members to be selected by the Association.
(b) One (1) member to represent members of the Industry un-
affiliated with the Association, selected in a manner to be approved
by the Administrator.
(c) In addition to the above, three (3) members, without vote, may
be appointed by the Administrator to serve for such terms as he may
specify, one of whom may be appointed by the Administrator upon
nomination by the Labor Advisory Board.
SECTION 2. The Code Authority may appoint its own officers and
employees and, except as herein provided, prescribe, subject to the
approval of the Administrator, rules, regulations and By-Laws for
its procedure and the conduct of its business and affairs.
SECTION 3. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code
Authority shall (1) impose no inequitable restrictions on member-
ship, and (2) 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 necessary
to effectuate the purposes of the Act.
SECTION 4. 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 lie may deem proper; and thereafter if he shall find that
the Code Authority is not. truly representative or dor-s not in other
respects comply with the provisions of the Act, may require an






9

appropriate modification in the method of selection of the Code
Authority.
SECTION 5. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purposes. 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
Authority exercising reasonable diligence in the conduct of his duties
hereunder, be liable to anyone for any action or omission to act
under the Code, except for his own willful malfeasance or non-
feasance.
SECTION 6. If the Administrator shall at any time determine that
any action of a 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 such 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. Subject to such rules and regulations as may be issued
by the Administrator, the Code Authority shall have the following
powers and duties, in addition to those authorized by other pro-
visions of this Code.
(a) To insure execution of the provisions of this Code and to
provide for the compliance of the industry with the provisions of
the Act.
(b) To adopt by-laws and rules and regulations for its procedure.
c) To establish a Trade Practice Complaints Committee, or Com-
mittees, which shall receive complaints of violations of the trade
practice provisions of this Code, make investigations thereof and
take such further action as may be necessary in accordance with rules
and regulations prescribed by the Administrator.
(d) To obtain from members of the Industry through a Con-
fidential Agency such information and reports as are required for
the administration of the Code. In addition to information required
to be submitted to the. Code Authority, members of the industry
subject to this Code shall furnish such statistical information as the
Administrator may deem necessary for the purposes recited in Sec-
tion 3 (a) of the Act to such Federal and State agencies as he may
designate; provided that nothing in this Code shall relieve any mem-
ber of the industry of any existing obligations to furnish reports to
any Government agency. No individual 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 Admin-
istrator.
(e) 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.
(f) To investigate the importation of competitive articles into the
United States on such terms or under such conditions as to render







ineffective or seriously endanger the maintenance of the Code, and
act as the agency for making complaint in respect thereof to the
President on behalf of the Industry.
(g) To recommend to the Administrator uniform terms of sale,
which upon approval by the Administrator shall become binding
provisions of this Code.
(h) 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.
(i) To appoint a Trade Practice Committee which shall meet with
the Trade Practice Committee 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.
SECTION 8. It being found necessary to support the Administra-
tion of this Code, in order to effectuate the policy of the Act and to
maintain 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 shall be held in trust for the purpose of the Code
and raised as hereinafter provided;
(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 all members of the Industry en-
titled to the benefits accruing from the maintenance of such stand-
ards; and the administration thereof;
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and collect equitable
contributions as above set forth, and to that end, if necessary, to
institute legal proceedings therefore in its own name.
SECTION 9. Each member of the Industry shall pay his or its equi-
table contribution to the expenses of the maintenance of the Code
Authority, determined as hereinabove provided, and subject to rules
and regulations pertaining thereto issued by the Administrator.
Only members of the Industry complying with the code and contrib-
uting to the expenses of its administration as hereinabove provided,
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.
SECTION 10. The Code Authority shall neither incur nor pay any
obligation in excess of the amount thereof as estimated in its approv-
ed budget, except upon approval of the Administrator; and no sub-
sequent budget shall contain any deficiency item for expenditures in
excess of prior budget estimates except those which the Administrator
shall have so approved.







SECoON 11. There shall be established an Industrial Relations
Committee for the Industry, which shall consist of an equal number
of representatives of employers and employees and an impartial
chairman. The Administrator shall appoint such impartial chair-
man upon the failure of the committee to select one by agreement.
If no truly representative labor organization exists, the employee
members of such board may be nominated by the Labor Advisory
Board of the N.R.A. and appointed by the Administrator. The em-
ployer representative shall be chosen by the Code Authority. Such
committee shall deal with complaints and disputes relating to labor
in accordance with rules and regulations issued by the Administrator.
The Industrial Relations Committee may establish such divisional,
regional, and local industrial adjustment agencies as it may deem
desirable, each of which shall be constituted in like manner as the
Industrial Relations Committee.

ARTICLE VII-TRADE PRACTICE RULzE

For all purposes of the Code the acts described in this Article shall
constitute unfair practices. Any member of the Industry who shall
directly, or indirectly through any officer, employee, agent or repre-
sentative, knowingly use, employ or permit to be employed, any such
unfair practices shall be guilty of a violation of the Code.
(a) Inaccurate Advertising.-No member of the Industry shall
use advertising (whether printed, radio, display or of any other
nature) or other representation which is misleading or inaccurate in
any material particular or in any way misrepresents any commodity
(including its use, trademark, grade, quality, quantity, origin, size,
substance, character, nature, finish, material content or preparation)
or credit terms, values, policies, services, or the nature or form of the
business conducted.
(b) False Billing.-No member of the Industry shall knowingly
withhold from, or insert, in, any quotation or invoice any statement
that makes it inaccurate in any material particular.
(c) Inaccurate Labeling.-No member of the Industry shall brand
or mark or pack any commodity in any canner which tends to deceive
or mislead purchasers with respect to the brand, grade, quality, quan-
tity, origin, size, material content or preparation of such commodity.
(d) Inaccurate Reference to Comnpetitors.-No member of the In-
dustry shall use advertising or other representation which refers
inaccurately in any material particular to any competitors, or their
commodities, prices, values, credits, terms, policies or services.
(e) Threat of Law Suits.-No member of the Industry shall pub-
lish or circularize unjustified or unwarranted threats of legal pro-
ceedings which tend to or have the effect of harassing competitors
or intimidating their customers.
(f) Secret Rebates.-No member of the Industry shall secretly of-
fer or make any payment or allowance of a rebate, refund, commis-
sion, credit, unearned discount or excess allowances, whether in the
form of money or otherwise, for the purpose of influencing a sale,
nor shall a member extend to any customer any special service or
privilege not openly extended to all customers of the same class,
for the purpose of influencing a sale.





12

(g) Consignment or Memorandwi, Shipments.-No member of
the Industry or his agent shall ship or deliver any of the products
of this Industry on what is known as "consignment" or memo-
randum arrangement, except that a member of the industry may
ship such products for selection or approval, upon condition that
such products be returned, or shipped for return, within not more
than three (3) days from its receipt by the consignee.
(h) Bribing Em.ployees.-No member of the industry shall give,
permit to be given, or offer to give, anything of value for the pur-
pose of influencing or rewarding the action of any employee, agent,
or representative of another in relation to the business of the em-
ployer of such employee, or the principal of such agent, without the
knowledge of such employer or principal.
(i) nteiferrence with Another's Contracts.-No member of the
industry shall attempt to induce the breach of an existing contract
between a competitor and his customer, or source of supply; nor
shall any such member interfere with or obstruct the performance
of such contractual duties or services.

ARTICLE VIII-IMODIFICATION

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 regu-
lation issued under Title I of said Act.
SECTION 2. Such of the provisions of this Code as are not required
to be included herein by the Act may, with the approval of the
Administrator, be modified or eliminated in such manner as may
be indicated by the needs of the public, by changes in circumstances,
or by experience.
ARTICLE IX-MIONOPOLIES

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-PRICE INCREASES

Whereas the policy of the Act to increase purchasing power will
be made more difficult of consummation if prices of goods and serv-
ices increase as rapidly as wages, it is recognized that price increase,
except such as may be required to meet individual cost, should be
delayed. But when made, such increase should, so far as possible,
be limited to actual additional increases in the seller's cost.

ARTICLE XI-EFFECTIVE DATE

This Code shall become effective on the second Monday after its
approval.
Approved Code No. 476.
Registry No. 233-10.







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Approved Code No. 476 Registry No. 233-10 NATIONAL RECOVERY ADMINISTRATION CODE OF FAIR COMPETITION FOR THE HATTERS' FUR CUTTING INDUSTRY AS APPROVED ON JULY 3. 1934 rl I WE DO OUR Ft\Rl 1 i 0-=-t , ,. • f I . l i • ' u. . DEP --UNITED STATES GOVERN ME N T PRI NTING OFFICE W ASHIN G T O N : 1934 For s a l e b y the S u perinten d e n t of Documents, Washington, D .C. - • - • • Price 5 cents V

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This publication is for sale b y 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 COMMEl?CE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, l\fass. : 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S .C. : Chamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. Cleveland, Ohio : Ohamber of Commerce. D a llas, Tex. : Chamber of Commerce Building. Detroit, Mich.: 801 First National Bank Building. Houston, Tex.: Chamber of Commerce Building. Indianapolis, Incl. : Chamber of Commerce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas City, Mo.: 102 8 Baltimore A ven ue. Los Angeles, Calif.: 1163 South Broadway. Louisville, Ky.: 408 Federal Building. Memphis, Tenn. : 229 Federal Building. Minneapo lis, Minn. : 213 Federal Building. New Orleans , La.: Room 225-A, Customhouse. New York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. Philadelphia, Pa.: 422 Commercia l Trust Building. Pittsburg h , Pa.: Chamber of Commerce Building. Portland, Oreg.: 215 N ew Pos t Office Building. St. Louis, Mo.: 506 Olive Street. San Francisco, Calif. : 310 Customllousc . Seattle, Wash.: 809 Federal Office Building.

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Approved Cod e No. 476 CODE OF FAIR COMPETITION FOR THE HATTERS' FUR CUTTING INDUSTRY As Approved on July 3, 1934 ORDER CoDE OF FAIR CoMPETITION FOR THE HATTERS' FuR CuTTING 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 tTune 16 , 1933, for approval of a Code of Fair Competition for the I-Tatters' Fur Cutting Industry, and a hearing having been duly h eld thereon and the annex ed r eport 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 United States, I, Hugh S . Johnso n, Administrator for Industria l Recovery, pursuant to authority vested in me by Executive Orders of the President, 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 comp lies in all respects with the pertinent prov i s ions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code of Fair Competition be and it is hereby approved, s ubject however, to the following conditions: 1. That the provisions of this Code shall be in full force and effect:for a p eriod of ninety (DO) clays from the effective date hereof. Prior to the expfration of aid period the Code Authority shall make recommendation s to the Administrator in regard to the continuance or amendment of any or all provisions of this Code. HUGH s. JOHNSON, Adm. inistrator for I ndustria l Recov ery. Approval recommended : SoL A. RosENBLATT, Division Admhiist1 ator. ,,r A HINGToN, D.C., Ju7y 3 , 193.{. 71720 --820-13--34 (1)

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REPORT TO THE PRESIDENT The PRESIDENT, The White House. Srn: The Public Hearing on the Code of Fair Competition :for the Hatters' Fur Cutting Industry as proposed by Hatters' Fur Cutters A ssociation of the U. S. A., was conducted in the Commerce Building, 1Va sh ington, D.C. on April 19 , 1934. Every person who requested an appearance was fairly heard in accordance with regulations of the National Recovery Administration. The Code has the approval of the Industrial and Labor Advisory Boards of the National Recovery Administration and of the Legal Division. The Code Com111ittee, upon authorization of the Association, has also giv e n assent to the final draft of the Code on behalf of the Industry. The Industry, as defined in the Code, includes the manufacturing, selling and distributing by manufacturers of hatters' furs, both blown and unblown, for any purposes for which hatters' fur can be used. The raw material of the Industry consists mainly of imported hare and rabbit sk ins, which skins are processed to give the fur fibre felt ing qualities . The fur fibre i s then cut a way from the skin, packed and sold to the maufacturers of fur felt hat bodies . This Industry i s entirely i solated from other industries proces sing fur, principally because this Industry performs no real dressing, tanning, or dyeing operation in any state of its manufacture, and it therefore does not require the type of sk ill ed l abor emp loyed in the other fur manufacturing industries. In another sense, its isolation is also caused by the fact that eighty to ninety per cent of its product is sold to a singl e cl::iss of customers, the aforesaid manufacturers of fur felt hat bodies. Ninety per cent of the Industry is located within a radius of 150 miles o:f New York City, and the hat manufacturing center of Danbury, Connecticut, contai n s fifty per cent of the Industry. The number of concerns engaged in this Industry in 1933 was thirty-five, which concerns e111ploye.cl a total of approximately 2,000 employees . The number of employees at the end of 1933 represente d an increase of approximately fifteen per cent over the numb er in early 1933. This reemployment was caus e d largely by the operation o:f the Pres ident's Reemployn1ent Agreement. Fromw the figures of years prior to 1929 as compared with 1933, i t would seem that although t he emp lo yers h ave suffered a substantial decrease in dollar volume of business, employment decrea sed only fractionally in the Industry. The dollar volume of sa les in 192 9 was over $18,000,000 while in 1933 the volume of business was approximately one-third of that. The submitting A sociat ion has been organized for thirty-five years and has given evidence of being properly equipped to as sist in the administration of this Code. It represents approximately eighty per (2)

PAGE 5

3 cent of the number of manufacturers in the United States and approximately ninety-five per cent of the Industry by volume of business and number of employees. RESUME OF THE CODE Article I gives the purpose of the Code. Article II sets forth certain definitions. Article III contains the maximum hour provisions of the Code. Article IV establishes the minimum wage rates for employees o:f the Industry. Article V sets forth general labor provisions. Article VI provides for the organization of the Code Authority and defines its powers and duties. Article VII defines trade prac tices which are unfair and shall be eliminated. Article VIII provides for modification of the Code. Article IX states that tli.e Code shall not permit monopolies. Article X deals with price increases . Article XI specifies the effective date. 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 the proceed ings in this matter ; I find that: (a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructim1s to the free flow of interstate and fore i g n commerce which tend to diminish the amount thereof and will provide 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 management under adequate governmental sanctions and supervision, by eliminating unfair competitive practice, by promoting the fullest pos8ible utilization of the present productive capacity of industrie s , by avoiding undue restriction of production ( except as n1ay be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and reli eving unemployment, by improving standards of labor, and by othe rwise rehabilitating industry. (b) Said industry normally emp loy s not more than 50,000 employees; and is not classified by me as a major industr;y. ( c) The Code as approved complies in all respects with the pertinent provis ions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7 , and Subsection (b) of Secbon 10 thereof; and that the applicant association i s an industrial as s ociation truly representativ~ of the aforesaid industry; and that the said association impo ses no inequi table restrictio n s on admission to m em ber ship therein. (cl) The Code i s not designed to and will not permit monopolies or monopolistic practices.

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4 ( e) The Code is not designed to and will not eliminate or oppress sn1all 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 the Code has been approved. Respectfully, JULY 3, 1934 . • HuaH S. JOHNSON, Ad1ninist1ator .

PAGE 7

CODE OF FAIR COMPETITION FOR THE HATTERS' FUR CUTTING INDUSTRY ARTICLE I-PURPOSES To effect the policies of Title I of the National Industrial Re covery Act, this Code is established as a Code of Fair Competition for the Hatters' Fur Cutting Industry, and its provisions shall be the standards of fair competition for such Industry and be binding upon every member thereof. ARTICLE II-DEFINITION SECTION 1. The term "Hatters' Fur Cutting Industry", or the term "Industry" as used herein, includes the manufacturing, selling and/or distributing by manufacturers of hatters' furs, both blown and unblown, for any purposes for which hatters' fur can be used, and such related branches or subdivisions as may from time to time be included under the provisions of this Code. SECTION 2. The term " member of the Industry ", as used herein, includes any individual, partnership, as ociation, 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 "employee", as used herein, includes anyone engaged in the industry in any capacity, receiving compensation for his services, irrespective of the nature or method of payment of such compensation , except a member of the Industry. SECTION 4. The term "employer", as used herein , includes anyone by whom any such employee is compensated or employed. SECTION 5 . The term "President", "Act", and "Administrator", as used herein shall mean respectively the President of the United States, the National Industrial Recovery Act, and the Administrator for Industrial R e covery . SECTION 6. The term "Association" as u s ed herein shall mean the Hatters' Fur Cutters Association of the U.S.A. ARTICLE III-HouRs OF LABOR SECTION 1. No employee shall be p ermitted to work in excess. of forty ( 40) hour in any one week or eight (8) hours in any twentyfour (24) hour period, except a s herein otherwise provided. SECTION 2. The provisions of this Article shall not apply to outside salesmen or to pers ons employed exclusiv ely in a managerial or executive capacity who earn regularly thirty-five ($35.00) dollars or more per week. SECTION 3. Watchmen shall not b p e rn1itt e d to work in exce s s of eighty-four (8.J:) hours in any two w eek period; provided that (5)

PAGE 8

6 watchmen shall not be employed :for direct labor on manufacturing operations. SECTION 4 . No emplo yee shall be permitted to work more than five (5) days in any even (7) day period. SE TION 5. No employer shall knowingly permit any employee to work for any time which, when added to the tin1.e spent at work for another employer or employers in this industry, exceeds the maximum permitted herein. SECTION 6. Any employe r who does the work of a manufacturing or production employee shall be subject to the provisions of this Code as to hours of labor. SECTION 7. The use of foremen on productive operations shall be :investigated by the Code Authority, and it shall make recommen dations to the Administrator w ith respect to the regulations of suc h u se, which upon his approval, after such notice and hearing as he may provide, s h all become binding provisions of this Code. ARTICLE IV-WAGES SECTION 1. No employee shall be paid l ess than at the rate or thirty-five (35) cents per hour, excep t as h erein otherwise provided. SECTION 2. No person employed in clerical or office work shall be paid at l ess than the rate of fourteen dollars($14.00) per week. SECTION 3. This article establishes a minimum rate of pay which shall apply, irrespective of whether an employee is actuall y com .pensated on a time-rate, piecework, or other basis. SECTION 4. There shall be an equitable adjustment of all wages above the minimum, and to that encl, within sixty (60) days from the approval of this Code, the Code Authority shall submit for the approval of the A clministrator a proposal for adjustment in emiskilled and skilled wages above the minimum. Upon approval by the Administrator, after suc h notice and hearing as h e may prescribe, such pro po al shall be a part of this Code; provided, however, that in no even t hall hourly rates of pay be reduced. SECTION 5 . A person who e earning capacity is limited b2cause of age or phy ical 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 empl oyment at s uch wage. and for such hours as s hall be stated in the certifi cate . Each employer shall file monthly with the Code Authority a list of all uch per on employed by him . howing the wage paid to, and the maximum hours of work for such ernp lo. ee . SECTION G . Female employees perfo ming substantially the same work a male employees shall receive the same rate of pay as male employees. SECTION 7. The problem of learner in the Indus,Ty shall be stud jed b y the Code Authority and recommen-:lat i ons made to the Acunin istrator, which upon his approval, after such notice and hearing as he may pecify, shall become binding provision of this Code. (a) The number of learners emplo yed by a member shall be limited to five ( 5%} per cent of the total number of employees engaged in manufacturing operations, except in specia l in tances as may be

PAGE 9

7 determined by the Code Authority, subject to the approval of the Administrator; provided, however, that each n1.ernber may employ at least one learner. (b) The minimum wage for learners shall be ten ($10.00) dollars a week for their first two weeks in the Industry, and thereafter they shall receive an increase of one ($1.00) dollar per week until they reach the minimum wage. ( c) No person shall be considered a learner for longer than his first five (5) week of employment in the Industry. Any time worked by a learner in the Industry shall be deemed a part of such learner's period of five (5) weeks, whether such tin1.e is worked con tinuously, or in more than one factory, or for 1nor e than one employer, or at m o re than one kind of operation. ARTICLE V-GENERAL LABOR Pi.WVISIONS SECTION 1. No person under sixteen (16) years of age shall be employed in the Industry. No person under eighteen ( 1 8) years of age hall be employed at operations or occupations which are hazardous in nature or dangerous to health. The Code Authority shall submit to the Administrator before August 1, 1934 a list of such operations or occupations. In the event of a claim _ of alleged violation of this section, an employer shall be deemed to have complied with the provisions of this section if he shall have on file and shall submit a certificatB of age issued by the duly authorized department of the State in which the employer operates, showing the age of the empl oyee to be no l ess than the age required by this section. 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 employers of labor, or their agents, in the designation of such representatives or in self -organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. (b) No employee and no one seeking employment shall be required as a condition of emp loyment to join any company union or to re frain from joining, organizing, or assisting a labor organization of his own choosing, and ( c) Employer:" shall con1ply with the maximum hours of labor, minimum rates of pay, and other conditions of employment approved or prescribed by the President. SECTION 3. No e1nployer shall reclassify employees or duties of occupations performed for the purpose of defeating the provisions of the Act or of this Code. SECTION 4 . \Vithin SL"\:ty (GO) clays after the effective elate of this Gode, the Code Authority shall appoint a committee to cooperate with the United States Public Health Service and a committee appointed by the Conference of State and Provincial Health Authorities of North America, in formulating and recommending for the approval of the Administrator, minimum standards of cleanliness, maintenance of equipment, and other sanitary and health safeguards. Upon the approval of such standards by the Administrator, members of the •

PAGE 10

8 Indu try shall conform with such minimum standards, provided, how ever, that nothing contained in this section shall relieve any membe r of the Industry from complying with any state or local laws, regulation or ordinance s, neither prior to the formulation and approval of s u ch standards, nor thereafter, if the requirements of s u c h law, regulations or ordinance s are more stringent than the minimum standards approved by the Administrator pur uant to the foregoing provision. In addition to the foregoing, each employer shall provide for the safety of employees during the hours and at the places of their em ployment. Standards of sa fety shall be submitted by the Code Authority to the Administrator within six ( 6) months after the effec tive date of this Code . SECTION 5 . No provision in this Code shall supersede any law within any State which imposes more stringent requirements on em p l oyers as to age of employees, wages, hours of work, or as to safety, health, or sanitary conditions, or insurance, or fire protection, or general working conditions, than are imposed by this Code. SECTION 6. All employers shall post and keep po sted copies of this Code in conspicuous p l aces accessible to a ll emp l oyees . Every member of the Industry shall comply with all rules and regulations relative to the posting of provisions of Codes of Fair Competiti on which may from time to time be prescribed by the Administrator. ARTICLE VI-ORGANIZATION , POWERS AND DUTIES OF THE ConE AUTHORITY SECTION 1. A Code Authority is hereby constituted to cooperate with the Administrator in the administration of the Code as follows: (a) Seven (7) members to be se lected by the Associat ion. (b) One (1) member to represen t m e mber s of the Industry un affiliated with the Assoc iation, selected in a manner to be approved by the Admini trator. ( c) In addition to the above, three (3) members, without vote, may be appointed by the Administrator to serve for suc h t erms as he may specify one of whom may be appointed by the Administrator upon n om ination by the Labor Advisory Board. SECTION 2. The Code Authority may appoint its own officers and einployee and, except as herein provided prescribe, subject tn the approval of the Administrator, rules, regulations and By-L aws for its procedure and the conduct of its business and affairs. SECTION 3. Each trade or industrial association directly or indir ectly participating in the se le ction or activities of the Code Authority shall (1) impo se no in equitable re strictions on member ship, and (2) submit to the Administrator true cop ies of its ar-ticles of a sociation, by-laws, regulations, and any amendments when made thereto, together with s u c h other information as to membership, organization and activities as the Administrator may deem ll'jC2ssary to effectuate the purpo es of the Act. SE TION 4. In order that the Code Authority shall at all times be truly representative of the Indu try and in other re spects comply with the provi ions of the Act, the Administrator 111.ay provide ,such hearing as he 1nay deem proper; and thereafter if he shall find that the Code Authority is not truly r pre entative or doi:-'.s not in 0ther respects comp ly with the provi i ons of the Act, may require an •

PAGE 11

9 appropriate modification in the method of selection of the Cocle Authority. SECTION 5. Nothing contained in this Code shall constitute the members of the Code Authority partners for any purposes. Nor shall any member of the Code Authority be liable in any manner to anyone for any act of any other m e mber, 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 omission to act under the Code, except for his O"\\n willful malfeasa nce or non fea ance . SECTION 6. If the Administrator shall at any time determine that any action of a Code Authority or any agen cy thereof may be unfair or unjust or contrary to the public inte rest, the Administrator may require that such action be su pended to afford an opportunity for investigation of the merits 0f uch action and further consideration by such 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. Subject to such rules and regulations as may be issu e d by the Administrator, the Code Authority shall have the following powers and duties, in addition to those authorized by other pro visions of this Code. (a) To in ure execution of the provisions of this Code and to provide for the compliance of the industry with the provision s of the Act. (b) To adopt by laws and rules and reg11lation s for its procedure . ( c) To establish a Trade Practice Complaints Committee, or Com mittees, which shall receive complaints of violati o ns of the trade practice provis ions of this Code, 1nake. investigations thereof and take such further action as may b e ne ces ary in accordance with rules and regulations prescribed by the Administrator. ( d) To obtain from member s of the Industry through a Con fidential Agency such information and r eport as are required for the admini tration of the Code. In addition to information r equired to be submitted to the. Code Authority, memb ers of the industry subject to this Code shall furnish s uch stati tical information as the Administrator may deem ne c e sary for the purpo es recited in Section 3 (a) of the A c t to such Federal and State agencies as he may designate; provided that nothing in thi.:.i Code , hall reli eve any m e mber of the industry of any exiting obligations to furni h report. to any Government agency. No individual report shall be disclosed to any other member of the ind u try or any other party except to u ch other Governmental agencie0 as 1nay be. directed by the Administrator. (e) To u e s uch trade as s ociation and other ao-encie a it leems proper for the carrying out of an3 of its ac'-ivities proYided for herein, provided that nothing herein shall relieve the Code Authority of its dutie or respon ibilities tmcler thi Code , and that such tra
PAGE 12

10 ineffective or seriou ly endanger the maintenance of the Code, and act a the agency for making complaint in respect thereof to the Pre ident on behalf of the Indu tr . (g) To recommend to the Administrator uniform terms of sale which upon apprO",al by the Aclmini trator hall become binding provi ion of this Code. (h) To r ecomn1end to the Administrator any action or measures deemed advi able, including further fair-trade practice provi ions to govern member of the Indu tr. in their relation with each other or with other indu tries mea ure for indu trial planning and tabilization of em plo3 ment and including modifications of this Code which hall become effective as part hereof upon approval by the Administrator after uch notice and hearing as he may specify. (i) To appoint a Trade Practice Committee which shall meet with the Trade Practice Committee appointed under uch other codes as may be related to the indu try for the purpose of formulating fair trade practice to govern the relationship ootween employers under thi Code and under such other codes to the end that such fair trade practices may be proposed to the Administrator as amendn1ents to this Code and such other Codes. SECTION 8 . It being found nece ary to support the Administration of this Code, in order to effectuate the policy of the Act and to maintain the standards of fair competition established hereunder, the Code Authority is authorize-el: (a) To incur such reasonable obligations as are necessary and proper for the foregoing purposes, and to meet such obligations out of funds which shall be held in trus t for the purpo e of the Code and rai eel a hereinafter provided ; (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 purpose , and 2 . An equitable basis upon which the funds neces ary to support such budget hall be contributed by all members of the Indu try entitled to the benefits accruing fron1 the maintenance of such standards; and the admini tration thereof; (c) After such budget and ba i of contribution have been ap prm-ed by the Administrator, to determine and collect equitable contributions a above se t forth. and to that end if neces arj, to in titute legal proceedings therefor in its own name. SECTION 9. Eac h member of the Industry shall pay his or its equitable contribution to the expen es of the maintenance of the Code Authority, determined a hereinabove provided, and subject to rules and regulations pertaining thereto i s ued by the Administrator. Only members of the Indu try complying with the code and contributing to the expenses of its ad1nin.i tration as hereinabo,e provided shall be entitled to participate in the selection of members of the Code Authority or to receive the b e nefit of any of its voluntary activities. SECTION 10. The Code Authority hall neither incur nor pay any obligation in exce s of the amount thereof as estimated in its approved budget, excep t upon approval of the Administrator and no sub sequent budget hall contain any d eficiency item for expenditure in excess of prior budget estimate except tho e which the Administrator shall have so approved.

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11 SECTION 11. There shall be established an Industrial Relations Comn1ittee for the Industry, which shall consist of an equal nun1ber of representatives of employers and employees and an impartial chairman. The Administrator shall appoint such impartial chairman upon the failure of the committee to select one by agreenient. If no truly representative labor organization exists, the employee members of suc h board may be n0111inated by the Labor Advisory Board of the N.R.A. and appointed by the Administrator. The employer repre entative shall be chosen by the Code Authority. Such committee shall dea l with complaints and disputes relating to labor in accordance with rules and regulations issued by the Administrator. The Industrial Relations Committee may establish such divisional, regional, and local industrial adjustment agencies as it may deem desirable, e.ach of which shall be constituted in like manner as the Industrial Relations Committee. ARTICLE VII-TRADE PRACTICE RULES For all purposes of the Code the acts de-scribed in this Article shall con _stitute unfair practices. Any member of the Industry who shall directly, or indirectly through any officer, employee, agent or representative, knowingly use, employ or permit to be employed, any such unfair practices shall be guilty of a violation of the Code. (a) I naccurate .Adv e1tising.-No member of the Industry shall use advertising ( whether printed, radio, display or of any other nature) or other representation which is misleading or inaccurate in any material particular or in any way misrepresents any commodity (including its use , trademark, grade, quality, quantity, origin, size, substance, character, nature, finish, material content or preparation) or credit terms, values, policies, services, or the nature or form of the business conducted. (b) Fals e Billing.-No memb e r of the Industry shall knowingly withhold from, or insert in, any quotation or invoice any stat emen t that makes it inaccurate in any material particular. (c) I naccurate Lab eling.-No member of the Industry shall brand or mark or pack any commodity in any canner which tends to deceive or mislead purchasers with respect to the brand, grade, quality, qnantity, origin, size, material content or preparation of such commodity. (cl) I naccwrate R e f e rence to Oonipetito1s. No member of the Industry shall use advertising or other representation which refers inaccurately in any material particular to any competitors, or their commodities, prices, values, credits, terms, policies or serYices. (e) Threat of L aw Suits.-No memb e r of the Industry shall publish or circularize unjustifie d or unwarranted threats of legal proceedings which t end to or have the effect of harassing competitors or intimidating their cu tomers. (f) Secret Rebates.-No member of the Industry shall secretly offer or make any payment or allowance o f a rebate, refund, commis sion, credit, unearned discount or excess allowances, whether in the form of money or otherwise, for the purpose of influencing a sa le, nor shall a member extend to any customer any special service or privilege not openly extended to all customers of the same class, for the purpose of influencing a sale.

PAGE 14

12 (g) Consignment or M emorandvxm Shipm, ents.-No member of the Industry or his agent shall ship or deliver any of the products of this Industry on what is known as "consignment" or "memo randum ' arrangement, except that a member of the industry may ship such products for selection or approval, upon condition that such products be returned, or shipped for return, within not more than three (3) days from its rec eipt by the con ignee. (h) Bribing E1npl ,oyees.-No member of the industry shall 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 bus ine s of the employer of s uch employee, or the principal of such agent, without the knowledge of such employer or principal. (i) Inter f erence with Anothe1's Oontracts.-No member of the industry shall attempt to induce the breac h of an existing contract between a competitor a nd his customer, or source of supply; nor shall any such 1nember interfere with or obstruct the performance of such contractual duties or services. ARTICLE VIII-MomFICATION 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 regulation is s ued under Title I of said Act. SECTION 2. Such of the provisions of this Code as are not required to be included herein by the Act m,ay, with the approval of the Administrator, be mo c litied or eliminated in s u ch manner as 1na . y be indicated by the needs of the public, by changes in circumstances, or by experience. ARTICLE IX-MONOPOLIES No provisio n of this Code shall be so a pp lied as to pern1it monopolies or monopolistic practices, or to eliminate, oppress or discriminate against small enterprises. ARTICLE X-PRICE INCREASE S Whereas the policy of the Act to increase _purchasing power will be made more difficult of consummation if prices of goods and serv i ces increase as rapidly as wages, it is recognized that price increase, except s u c h as may be required to mee t individual cost, should be delayed. But when made, s u ch increase should, so far as possible, be limited to actual additional increases in the seller's cost. ARTICLE XI-EFFECTIYE DATE This Code shall become effective on the second Monday after its approval. Approved Code No. 476. Registry No. 233-10. 0

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