Citation
Code of fair competition for the retail rubber tire and battery trade as approved on May 1, 1934 by President Roosevelt

Material Information

Title:
Code of fair competition for the retail rubber tire and battery trade as approved on May 1, 1934 by President Roosevelt
Portion of title:
Retail rubber tire and battery trade
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C.
Publisher:
U.S. G.P.O.
Publication Date:
Language:
English
Physical Description:
p. 507-525 : ; 24 cm.

Subjects

Subjects / Keywords:
Tire industry -- Law and legislation -- United States ( lcsh )
Battery industry -- Law and legislation -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 807-19."
General Note:
"Approved Code No. 410."

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:
004942767 ( ALEPH )
63654886 ( OCLC )

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Full Text



Apprved odeNo. 10 egisry o. 87-1


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


RETAIL RUBBER TIRE

AND BATTERY TRADE


AS APPROVED ON MAY 1, 1934
BY

PRESIDENT ROOSEVELT


WE DO OUR PART


U.S. wPOOtTORY

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


S
For sale by Ihe Superinlendent of Documents, Washington, D.C. - Price 5 cents


Approved Code No. 410


Registry No. 807-18



























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta. Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Bo,.st. n. Mass.: 1SU1 Customhouse.
Buffaln, N.Y.: Chamber of Commerce Building.
Charleston. S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, 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 Commercial Trust Building.
Pittsburgh, Pa.: Chamber 'if Commerce Building.
Portland, ()reg.: 215 New Pist Office Building.
St. Louis, Mo. 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: S09 Federal Office Building.




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Approved Code No. 410


CODE OF FAIR COMPETITION
FOR THE
RETAIL RUBBER TIRE AND BATTERY TRADE

As Approved on May 1, 1934
BY
PRESIDENT ROOSEVELT


EXECUTIVE ORDER

CODE OF FAIR COMPETITION FOR THE RETAIL RUBBER TIRE AND BATTERY
TRADE
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 my approval of a Code
of Fair Compettition for the Retail Rubber Tire and Battery Trade,
and hearings having been held thereon and the Administrator hav-
ing rendered his report containing an analysis of the said Code of
Fair Competition together with his recommendations and findings
with respect thereto, and the Administrator having found that the
said Code of Fair Competition complies in all respects with the
pertinent provisions of Title I of said Act and that the requirements
of clauses (1) and (2) of sub-section (a) of Section 3 of the said Act
have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator and do order that effective May 14,
1934, unless just cause to the contrary should theretofore be shown,
the said Code of Fair Competition be and it is hereby approved;
provided, that if prior to said effective date the Administrator on
his own initiative determines that an emergency due to destructive
price-cutting, as stated in Article VI, Section 4 of said Code, exists
in the trade, the Administrator may thereupon cause to be deter-
mined the lowest reasonable cost as set forth in said Section 4 of
Article VI and such determination may thereupon be announced
to the members of the trade in such manner as the Administrator
shall direct but shall not become binding upon such members until
the effective date of the Code; and provided further, that in connec-
tion with the existence of an emergency due to destructive price-
cutting and the determination of lowest reasonable cost thereunder
55984"-544-2-34 (507)







508

as stated in Article VI, Section 4 of the Code, in order to eliminate
unfair competition the Administrator may establish for the period
of such emergency a uniform guarantee and warranty applicable
to the sale or offering for sale of any products of the trade; and pro-
vided further, that the provisions of Article VI, Section 2 insofar
as they prescribe a waiting period between the filing with the Code
Authority or its duly constituted agency and the effective date of
revised price-lists, be and they are hereby stayed pending my further
orders or the' orders of the Administrator; and provided further,
that within ninety (90) days of the approval of the Code, the Code
Authority shall submit recommendations to the Administrator for
the purpose of rendering the hour and wage provisions of this Code
as consistent as possible with such provisions in codes of related
trades.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON,
A administrator.
THE WHrrE HOUSE,
May 1, 1934.










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*ii






i!.


b.




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LETTER OF TRANSMITTAL


The PRESIDENT,
The White House.
SIR: The proposed (ode of Fair Competition for the Retail Rub-
ber Tire and Battery Trade was submitted to the Administrator on
August 23, 1933. Further consideration of the Code was postponed
pending approval of the Code for the Rubber Tire Manufacturing
Industry. A Hearing was conducted in Washington on December
15, 1933. The Code was revised during the recess of this Hearing
and is submitted in its present form for approval. Every person
who requested an appearance was properly heard in accordance with
statutory and regulatory requirements.

HOURS AND WAGES

Under this Code, employees are limited to 48 hours per week with
a restriction of 10 hours per day and 52 hours in any one week. Over
time in excess of 48 hours per week shall be paid at the rate of time
and one third. Watchmen are limited to 54 hours per week and not
more than 6 days per week. These maximum hours refer to the
availability of the employee in the employer's establishment.
The Code provides for a minimum wage of $0.40 per hour for part
time employees or employees paid on an hourly basis in Northern
States and $0.35 per hour in Southern States. Minimums for
salaried employees range from $12.00 per week in towns of less than
2,500 population to $15.00 per week in cities of 500,000.

OTHER PROVISIONS OF THE CODE

The Code provides for the posting of prices in a conspicuous
manner in any dealer's establishment or the guidance of consumers.
It also provides that whenever the Code Authority may determine
that destructive price cutting exists in any trade area to the extent
that it endangers the provisions of the Code, upon certification, the
Administrator may declare an emergency and cause the lowest rea-
sonable cost to be determined for such trade area-such lowest rea-
sonable cost being the lowest price at which any dealer may sell
products of the Trade in that area during the emergency.
The Trade has adopted thirty-four (3'4) trade practice provisions
in this Code, designed to eliminate various forms of unfair competi-
tion. Many of these were originally incorporated in the Codes for
the Rubber Tire and Electric Storage Battery Industries. Every
effort has been made to coordinate the Codes for this Trade with the
respective Industries supplying its products. The Code further
provides however that the Code Authority shall make recommenda-
tions to the Administrator in regard to the coordination of this Code
(509)







510


with that of the Code Authority of the Rubber Tire Manufacturing
Industry and the Electric Storage Battery and Wet Primary Battery
Industry, for administrative purposes.
Supplemental Codes for the Wholesale Tire and Battery Trade
and the Tire Rebuilding and Retreading Industry or Trade may be
submitted as part of this Code at a later date.

ECONOMIC EFFECT OF CODE

Sales in the Rubber Tire Manufacturing Industry declined from
$675,000,000 to $300,000,000 or 55% from 1929 .to 1933. Sales in the
Electric Storage Battery Industry declined from $109,000,000 in
1929 to about $65,000,000 or 40%, in the same period.
In 1929, there were 154,000 establishments engaged in the re-
tailing of tires and batteries, according to the Census of Distribu-
tion for that year. Sales of tires composed 85% of the total sales
of the products of the Trade covered by this Code. No exact data
are available as to the number of establishments selling tires and
batteries or the number of employees involved. It is believed that
some 175,000 establishments will be affected by this Code, insofar as
the trade practices. Tires and batteries are sold in many types of
establishments, including filling stations, motor vehicle retailers,
garages, tire and battery stores, automotive accessories stores, de-
partment stores. The Division of Research and Planning estimates
there are about 100,000 employees engaged in the Trade. The Trade
itself estimates 150,000 employees. In the absence of any data,
no estimate can be made as to re-employment. Prior to last Au-
gust, the Trade has stated that employees averaged from sixty to
seventy hours per week.
The Retail Rubber Tire and Battery Trade urgently needs a
Code of fair competition. As you know, it was necessary for this
Administration to intervene on March 30th to end a wave of destruc-
tive price cutting which had spread thruout the country. In trans-
mitting the Code for the Rubber Tire Manufacturing Industry for
your approval, I stated that the reclamation of this Industry and
Trade from the destructive competition which has existed, must be
a continuing task over a long period of time. This Code is designed
to supplement the Manufacturers' Code, and to further assist the
Industry and Trade in eliminating the type of unfair competition
which has prevailed.
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, includ-
ing removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will
provide for the general welfare by promoting the organization of
industry for the purpose of cooperative action among the trade
groups, by inducing and maintaining united action of labor and



"
.{.






511


management under adequate governmental sanctions and supervi-
sion, 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 temporarily 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) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicant association
is a trade association truly representative of the aforesaid Trade;
and that said association imposes no inequitable restrictions on
admission to membership therein.
(c) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(d) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(e) 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.
It is recommended, therefore, that this Code be approved.
Respectfully,
HUGH S. JOHNSON,
Administrator.
MAY 1, 1934.













CODE OF FAIR COMPETITION FOR THE RETAIL
RUBBER TIRE AND BATTERY TRADE

To effect the policies of Title I of the National Industrial Re-
covery Act, the following provisions are hereby established as a
Code of Fair Competition for the Retail Rubber Tire and Battery
Trade, and shall be the standards of fair competition for this Trade,
and shall be binding upon every member thereof.

ARTICLE I
A. DEFINITIONS
SECTION 1. The term Retail Rubber Tire and Battery Trade"
or Trade ", as used herein, shall mean the sale or offering for sale
to the ultimate consumer and not for resale purposes, of:
(a) Solid or pneumatic rubber tires and pneumatic rubber tubes;
(b) Automotive storage batteries for starting, lighting, and/or
ignition service and radio receiving storage batteries;
(c) Tire or battery parts and accessories;
(d) Automobile rims and wheels in connection with change-over
from one type of tire equipment to another;
(e) The servicing of products of the Trade.
SECTION 2. The term Member of the Trade or Member ", as
used herein, includes but without limitation, any individual, partner-
ship, association, corporation, or other form of enterprise, and any
subsidiary or affiliate of the same, engaged in the Trade, either as
employer or on his or its own behalf.
SECTION 3. The term '~ Member of the Code", as used herein,
includes any Member of the Trade who shall expressly signify
assent to this Code.
SECTION 4. The term service or "servicing as used herein,
shall include, in addition to the direct servicing or repairing
of products of the Trade, the rendering of any service to a customer
as part of a transaction of sale or offer of sale of any product of the
Trade to such customer, and the rebuilding of such products by the
Members of the Trade.
SECTION 5. The term "Association ", as used herein, means the
National Tire Dealers Associaton, Inc., a corporation organized
and existing under the laws of the State of New York, and at present
having its principal office at Chicago, Illinois, or such successor
corporation thereto as may hereafter be duly constituted.
SECTION 6. The term "employee ", as used herein, includes any
and all persons engaged in the Trade, however compensated, except
a Member of the Trade.
SECTION 7. The term employer as used herein includes anyone
by whom such employee is compensated or employed.
(512)

I.
.i..
:*"







513


SECTION 8. The terms the President ", "Act", and "Admin-
istrator", as used herein, mean, respectively, the President of the
United States, Title I of the National Industrial Recovery Act,
and the Administrator for Industrial Recovery.
SECTION 9. The term Southern States ", as used in Articles IV
and V herein, shall mean Alabama, Arkansas, District, of Columbia,
Florida, Georgia, Kentucky, Louisiana. Maryland, Mississippi,
New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee,
Texas, Virginia, and West. Virinia.
SECTION 10. The term Northern States ", as used in Articles IV
and V herein, shall mean the rest of the United States, but not
Alaska, Hawaii or Puerto Rico.
SECTION 11. Population for the prpl)oses of this Code shall be
determined by reference to the latest. Federal Census.

ARTICLE II

A. ADMINISTRATION

SECTION 1. A Code Authority is hereby establi.-ied, consisting
of nine voting members representative of the trade, to be appointed
by the Administrator, consisting of the following:
* Six members representative of Members of the Code who are
independent tire and battery dealers. One such Member shall be
elected from each of the six geographical Regions as defined in
Section 3 of this Article:
One member shall be representative of Members of the Code who
are distributors of petroleum products, distributing special brand
tires, tubes, and batteries:
One member shall be representative of Members of the Code dis-
tributing special brand tires, tubes and batteries through mail order,
chain or department stores.
One member shall be representative of Members of the Code owned
or controlled by rubber tire manufacturers and known as company
retail stores.
(a) The General Manager of the Association shall be an ex-
officio member of the Code Authority and shall act as its Chairman
with no voting power.
(b) One alternate shall also be appointed by the Administrator
for each member of the Code Authority, representative of the same
class of Members of the Code as his principal with full power to act
in the absence of his principal.
(c) The nine persons appointed to constitute the Code Authority
and their alternate shall serve for such terms as may be designated
by the Administrator, provided, however, that any person appointed
may be removed by the Administrator at any time.
SECTION 2. In addition to membership as above provided, there
may be from one to three persons to be known as Administration
Members, without vote and without expense to the Trade, to be ap-
pointed by the Administrator, to serve for such terms as he may
specify.
55984"---5 -4-2--34---2






514


SECTION 3. The geographical Regions for the purpose of selection
of the independent dealer members of the Code Authority shall be
constituted as follows:
Atlantic, Central, Eastern, Southern, Western, Pacific, with such
boundaries thereto as the Administrator may prescribe.
SECTION 4. Each trade association directly or indirectly partici-
pating in the selection or activities of the Code Authority shall:
(a) Impose no inequitable restrictions on membership, and
(b) Submit to the Administrator true copies of its articles of asso-
ciation, by-laws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization and activities as the Administrator may deem necessary
to -ffectuate the purposes of the Act.
SECTION 5. In order that the Code Authority shall at all times
b)e truly representative of the Trade and in other respects comply
with the provisions of the Act, the Administrator may prescribe
such hearings as he may deem proper; and thereafter if he shall
find that the Code Authority is not truly representative or does not
in other respects comply with the provisions of the Act, may require
an appropriate modification of the Code Authority.
SECTION G. Nothing contained in this Code shall constitute the
enembers of the Code Authority partners for any purpose. Nor shall
this Code be construed to render any member of the Code Authority
liable in any manner to anyone for any act of any other member,
officer, agent, or employee of the Code Authority. Nor shall this
Code be construed to render any member of the Code Authority, ex-
ercising reasonable diligence in the conduct of his duties hereunder,
liable to anyone for any action or omission to act under this Code,
except for his own wilfull malfeasance or non-feasance.
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 provisions
of this Code.
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the Trade with the provisions of the
Act.
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration of the Code.
(c) To obtain from Members of the Trade 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. MoilHdrs of the Trade subject to this Code shall furnish
such sttiti-tical information as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act to such Federal
and State agencies as lie may designate; provided that nothing in
this Code shall relieve any Member of the Trade of any existing
obligations to furnish reports to any government agency. No indi-
vidual report shall be ,disclosed to any other Member of the Trade
or any other party except to sich other governmental agencies as
may be directed by the Alminiistrator.
(l) To use isuch trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that notliung herein shall relieve the Code Authority






515


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
as may be related to or affect. Members of the Trade.
(f) 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 Trade for the purpose of formdulting fair
trade practices to govern 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 amenildment to
this Code and such other codes.
(g) To cooperate with the Administrator in regllating the use
of any N.R.A. insignia solely by those Members of the Trade who
have assented to and are complying with this Code.
(h) To recommend to the Administrator further fair trade prac-
tice provisions to govern Members of the Trade in their relations
with each other or with other trades.
(i) To define regional, district, and other trade areas and desig-
nate the boundaries thereof.
(j) To establish, with the approval of the Administrator, a Con-
trol Board or Boards for any region, district or other trade area
through such individuals or groups as the Code Authority shall des-
ignate, and to discharge through such Board or Boards such of the
powers and duties reposed in the Code Authority as may be necessary
for the effective administration of this Code, in their respective re-
gions, districts. or other trade areas, provided, however, that noth-
ing herein shall relieve the Code Authority of its duties or respon-
sibilities under this Code.
(k) To revoke any authority granted by it pursuant to paragraph
(j) of this Section 7 whenever it shall determine that it is not being
fully or properly exercised.
(1) To coordinate and harmonize the activities of the various
Control Boards.
(m) 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:
(1) 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 purposes of the Code
and raised as hereinafter provided:
(2) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary:
(a) An itemized budget of its estimated expenses for the fore-
going purposes, and
(b) An equitable basis upon which the funds necessary to
support such budget shall be contributed by all Members of the
Trade entitled to the benefits accruing from the maintenance of
such standards, and the administration thereof;
(3) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and collect equitable con-







516


tributions as above set forth, and to that end, if necessary, to institute
legal proceedings therefore in its own name.
(4) Each Member of the Trade shall be liable for his or its equi-
table contribution to the expenses of the maintenance of the Code
Authority as hereinabove provided. Only Members of the Trade
complying with the Code and making such contribution shall be
entitled to participate in the selection of the members of the Code
Authority or to receive the benefits of its voluntary activities or to
make use of any N.R.A. insignia.
SECTION 8. If the Administrator shall determine that any action
of the Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may require
that such action be suspended to afford an opportunity for investi-
gation 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 the same, or unless he
shall fail to disapprove the same after thirty (30) days notice to
him of intention to proceed with such action in its original or
modified form.
SECTION 9. The Code Authority shall designate an impartial
agency for the collection of statistics, data, reports, and information
under the Code. Every Member of the Trade shall prepare and file
with such impartial agency at such times and in such manner and
form as the Code Authority may designate such information and
reports pertinent to the operation of this Code as the Administrator
may from time to time require. Such reports and/or records may be
either sworn or unsworn as required.
(a) Any refusal or persistent or deliberate neglect by any Member
of the Trade to file or furnish information required under this Article
shall constitute an unfair trade practice and a violation of this Code.

ARTICLE III

A. INDUSTRIAL RELATIONS POLICIES

SECTION 1. Employees shall have the right to organize and bar-
gain collectively through representatives of their own choosing,
and shall be free from the interference, restraint, or coercion of
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.
SECTION 2. No employee and no one seeking employment shall be
required as a condition of employment to join any company union
or to refrain from joining, organizing, or assisting a labor organiza-
tion of his own choosing.
SECTION 3. 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 4. No person under sixteen (16) years of age shall be
employed in the Trade. No person under eighteen (18) years of
age shall be employed at operations or occupations which are danger-
ous to health. In any State an employer shall be deemed to have







517


complied with this provision as to age if he shall have on file a valid
certificate or permit duly signed by the Authority in such State
empowered to issue employment or age certificates or permits showing
that the employee is of the required age.
SECTION 5. No provision in this Code shall supersede any State or
Federal Law which imposes more stringent requirements on em-
ployers as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general working conditions, or insurance, or fire
protection, then are imposed by this Code.
SECTION 6. No employer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge for the pur-
pose of defeating the purposes or provisions of the Act or of this
Code.
SECTION 7. All employers shall post and keep posted copies of this
Code in conspicuous places accessible to all employees. Every Mem-
ber of the Trade shall comply with all rules and regulations relative
to the posting of provisions of ('odes of Fair Competition which may
from time to time be prescribed by the Administrator.
SECTION 8. Every employer shall make reasonable provision for
the safety and health of his employees at the place and during the'
hours of their employment.

ARTICLE IV

A. HOURS

SECTION 1. No employee shall be permitted to work more than
forty-eight (48) hours in any one week, nor more than ten (10) hours
in any one day, except that in cases of necessity such employees may
work in excess of forty-eight (48) hours in any one week, and ten
(10) hours in any one day, provided that time and one third shall be
paid for all hours of employment in excess of forty-eight (48) hours
in any one week or ten (10) hours in any one day, but in no case shall
an employee be permitted to work more than fifty-two (52) hours
in any one week.
SECTION 2. Watchmen shall not be permitted to work more than
Fifty-four (54) hours in any one week, nor more than six (6) days
in any one week.
SECTION 3. Employees engaged in a managerial, executive or super-
visory capacity in cities of 100,000 population or more or in the im-
mediate trade areas of such cities, who regularly receive not less
than Thirty-five Dollars ($35.00) per week in Northern States and
not less than Thirty Dollars ($30.00) per week in Southern States,
and such employees in places of less than 100,000 population or in
the immediate trade areas of such places who regularly receive not
less than Thirty Dollars ($30.00) per week in Northern States and
not less than Twenty-five Dollars ($25.00) per week in Southern
States, and outside salesmen, shall be exempt from any provisions
as to maximum hours.
SECTION 4. No employer shall knowingly permit any employee to
work for any time which, when totaled with that already performed
with another employer or employers in this Trade exceeds the max-
imum permitted herein.







518


SECTION 5. The maximum hours hereinabove prescribed refer to
the availability of the employee in the establishment or on the prem-
ises of the employer at the latter's request, whether or not the
employee is actively engaged in specific tasks throughout these hours.
SECTION 6. The Code Authority shall proceed immediately to a
study of the problem of consecutive hours of employment with re-
gard to the necessities of the Trade in the maintenance of service to
the public, and make recommendations within ninety (90) days,
which upon approval by the Administrator after such notice and
hearing ua he Imay prescribe shall be effective as a part of this Code.
ARTICLE V

A. WAGES

SECTION 1. No employee shall be paid per week of forty-eight
'(48) hours less than at the rate of:
$15.00 per week-In any city of 500,000 population or over or
in the immediate trade area of such city, in the Northern
States;
$14.00 per week-In any city of 5(0,000 population or over or
in the immediate trade area of such city, in the Southern
States;
$14.50 per week-In any city between 250,000 population and
under 500,000 population or in the immediate trade area of
such city, in the Northern States;
$13.50 per week-In any city between 250,000 and under
500,000 population or in the immediate trade area of such city,
in the Southern States;
$14.00 per week-In any place between 2,500 and under 250,000
population or in the immediate trade area of such place in
the Northern States;
$13.0,) per week-In any place between 2,500 and under 250,000
population or in the immediate trade area of such place, in
the Southern States;
$12.00 per week-In places elsewhere.
SE(-rIoN 2. A part time employee or one paid on an hourly basis
shall be paid not less than forty cents (40) per hour in the Northern
States nor less than thirty-five cents (35d) per hour in the Southern
States. A part time employee is one whose working hours entitle
him to less than the applicable minimum weekly amount specified
in Section 1 of this Article. Any employer may establish a regular
full time week of less than the hours specified in Section 1 of this
Article for all or part. of his employees provided, however, that the
minimum weekly wages established in said Section shall not be
thereby reduced.
SECTION 3. No imployce. whose normal full time weekly hours are
reduced puiirullnt to this Code by 20%1 or less, shall have his or her
full time weekly earnings reduced. No employee, whose normal
full time weekly hours are reduced by more than 20% pursuant to
this Code, shall have his or her full time weekly earnings reduced
by more than 10(-, and in no event less than the minimum weekly
wages established in Section 1 of this Article.







519


SECTION 4. A person whose earning capacity is limited because of
age, physical or mental handicap may be employed on light work at
a wage below the minimum established by this Code if the Member
of the Trade obtains from the State Authority designated by the
United States Department of Labor a certificate authorizing such
person's employment at such wages and for such hours as shall be
stated in the certificate. Every Member of the Trade 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 employees.
SECTION 5. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
employees.
SECTION 6. This Article establishes minimum rates of pay which
shall apply, irrespective of whether an employee is actually com-
pensated on a time rate, piece-work, or other basis.

ARTICLE VI

A. OPEN PRICES AND DESTRUCTIVE PRICE-CUTTING

SECTION 1. Every Member shall file with the Code Authority or
its duly constituted agency, in such manner and form as the Code
Authority or its agency may determine, a schedule of such Mem-
ber's retail and commercial prices, discounts, terms and conditions
of sale (including trade-in allowances, if any) for any product or
service of the Trade or any combination thereof.
SECTION 2. Thereafter no Member shall sell or offer for sale any
product or service of the Trade or any combination thereof below
the price stated in such filed schedules, provided however that such
schedules may be changed on not less than three (3) days notice to
the Code Authority or its agency, in such fair manner as the Code
Authority or its agency shall determine. No advance notice of
change need be given in t.he event that any Member advances prices
over his last filed schedule but this shall not be construed to include
a waiver of the requirements of Section 1 of this Article.
SECTION 3. Every Member shall post and keep posted conspicuously
in his establishment or establishments, in a manner easily accessible
to customers, a copy of his prevailing schedule of filed retail prices,
at which any product or service of the Trade or any combination
thereof will be sold or offered for sale by him. The Code Authority
or its agency may determine the manner and form of such schedule
and posting thereof.
SECTION 4. Destructive price-cutting as set forth herein is declared
an unfair method of competition and is forbidden. Whenever the
Code Authority determines that an emergency exists throughout the
Trade or within the Trade in any area, and that the cause thereof is
destructive price-cutting such as to render ineffective or to seriously
endanger the maintenance of the provisions of this Code or of the
Act, and the Code Authority certifies its conclusions based on such
determinations to the Administrator, or the Administrator deter-
mines on his own initiative, that an emergency exists as herein set
I See paragraph 2 of order approving this Code.







520


forth, the Administrator may thereupon declare such an emergency
to exist, subject to the provisions of Article XI of this Code.
(a) Thereupon the Administrator may cause to be determined in
accordance with such rules ant regulations as he may prescribe, the
lowest reasonable cost of any product or service of the Trade, in
any area concerning which such emergency shall have been declared
to exist. Such lowest reasonable cost when determined as aforesaid,
shall be announced to Members of the Trade in such manner as the
Administrator shall direct.
(b) Thereafter until the Administrator shall have declared that
said emergency has ceased to exist, no Member of the Trade shall
sell, or offer to sell, or otherwise dispose of any product or service
of the Trade for which the lowest reasonable cost has been deter-
mined, as hereinabove set forth, at a net realized price less than
the lowest reasonable cost so established.
(c) During the period of the emergency, the determination of
lowest reasonable cost may be revised from time to time at reason-
able intervals or as changes in circumstances or experience may
indicate.
(d) The Administrator may at any time declare, in such fair man-
ner as he shall determine, that the period of emergency has ended.

ARTICLE VII
A. TRADE PRACTICES
SECTION 1. No member 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 which re-
fers inaccurately to competitors or their commodities, prices, values,
credit terms, policies, or services. No Member shall, in any way,
misrepresent any commodity (including but without limitation, its
use, trade mark, grade, quality, quantity, origin, size, substance,
character, nature, finish, material content, preparation or specifica-
tions) or credit terms, values, policies, services, or the nature or form
of the business conducted.
SECTION 2. No Member shall use advertising which inaccurately
lays claim to a policy or continuing practice of underselling
competitors.
SECTION 3. No Member shall advertise, sell or offer for sale any
products of the Trade or service thereof in combination offers as
" free ", or any unit of such combination offer at less than the posted
price for such unit.
SuC(TION 4. No Member shall make any unauthorized use of trade
names, trademarks, or slogans identical with, or in imitation of, those
already in use by any other Member of the Trade or any Member of
the Rubber Tire Manufacturing Industry or the Electric Storage
and Wet Primary Battery Industry with the purpose or effect of
misleading or deceiving customers in any material particular.
SErCIoN 5. No Member shall falsely advertise or make any other
representation referring to, containing, or embodying a trade name
or trade-mark of any manufacturer or distributor, or any such terms
as "All Standard Makes", in connection with the offering and/or






521


sale of any tires, tubes, or batteries, bearing a trade-mark or trade
name.
SECTION 6. No Member shall represent itself as a franchised
dealer", by display or otherwise, for a particular product, when
in fact such Member is not so franchised
SECTION 7. No Member shall advertise in any form or by any
means the selling of "change-over" tires, or the offering of any
trade-in allowance on used products of the Trade, provided that
nothing herein shall limit in any way the operation of Section 3
of Article VI.
SECTION 8. No Member shall fill at old prices any orders received
or showing postmark after 12:01 A.M. of the day upon which a
Member's new prices become effective. No Member lshall solicit
orders at old prices after new prices have become effective. No
Member shall give any information to any class of consumers regard-
ing price changes prior to their effective date.
SECTION 9. No Member shall solicit or accept written or verbal
orders, agreements, or contracts for the sale of any products of the
Trade to any class of customers, the effect of which is to guarantee
prices on future deliveries. No Member shall renew or extend exist-
ing orders or contracts as a subterfuge in violation of this Section.
For purposes of interpretation of this Section, orders delivered
within thirty days (30) after date of order may be construed as
"immediate delivery"; deliveries after such thirty (30) day pe-
riod shall be construed as future delivery and billed at prices in
effect on delivery date. Should this provision work a hardship on
any Member, such Member may apply to the Code Authority which
shall have power to grant such exception as justice may require.
SECTION 10. No Member shall allow a cash discount in excess of
two (2%) per cent. No Member shall sell or offer for sale products
of the Trade on a deferred, installment or time basis, unless the total
selling price for such products includes an amount for legal interest
and other usual carrying charges.
SECTION 11. No Member shall solicit or accept at other than cur-
rent prices the reinstatement of any order previously canceled.
SECTION 12. No Member shall withhold from or insert into any
quotation or invoice any statement that makes it inaccurate in any
material particular. No Member shall post-date or pre-date, or
acquiesce in the post-dating or pre-dating of orders, invoices, or
contracts.
SECTION 13. No Member shall secretly make any payment or al-
lowance of a rebate, refund, commission, credit, unearned discount,
or excess allowance, whether in form of money or otherwise, for
the purpose of influencing a sale, nor shall any Member secretly
offer or extend to any customer any special service or privilege
not extended to all customers of the same class.
SECTION 14. No Member shall give, or knowingly permit to be
given, or offer to give, anything of value for the purpose of in-
fluencing or rewarding the action of an employee, agent, or repr-
sentative of another in relation to the business the employer of
such employee, the principal of such aPent, or the represented party.
This section shall not be construed ti pr-,hibit the free and general






522


distribution of articles used for advertising except when such articles
are actually used for commercial bribery as aforesaid.
SECTION 15. No Member shall make, or publish any statement con-
cerning the name, reputation, services, goods, products, policies,
practices, or financial standing of any Member, its agents, repre-
sentatives, or employees which is false or misleading in any material
particular.
SECTION 16. NO Member shall willfully induce or attempt to in-
duce the breach of existing contracts between competitors and their
customers by any false or deceptive means, or interfere with or ob-
struct the performance of any such contractual duties or services by
any such means, with the purpose and effect of hampering, injuring
or embarrassing competitors in their business.
SECTION 17. No Member shall brand or mark or pack any goods
in any manner which is intended to or does deceive or mislead
purchasers in any material particular with respect to the brand,
grade, quality, quantity, origin, size, substance, character, nature,
finish, material content or preparation of such goods.
SECTION 18. After four months from the effective date of this Code
nio Member shall sell, or offer for sale, blemished or second "
tires and tubes except to a Member's own employees for personal use
and not for purposes of resale.
SE'TION 19. No Member shall under any circumstances sell or
offer for sale new products of the Trade (or firsts ") as seconds ",
"used ", or changeovers."
SECTION 20. No Member shall sell or offer for sale any products
of the Trade of obsolete or discontinued design in a number in
excess of ten units in any one establishment during any thirty (30)
day period at special prices unless
(a) Such Member shall notify the Code Authority or its duly
constituted agency ten (10) days in advance of the intended offering
for sale of such products, and
(b) Such products are marketed in accordance with regulations
of the Code Authority thereto appertaining, and
(c) Such Member states the number, type and size of such products
and the discount below the regularly established price at which such
products are to be offered or sold, and
(d) Such Member indicates clearly to customers that such prod-
ucts are of obsolete or discontinued design.
(e) Advertising in any form or by any means clearly specifies that
such products are of obsolete or discontinued design.
For the purpose of this Section, obsolete or discontinued designs
shall be defined as all products of the Trade which have actually
been discontinued from production.
SECTION 21. No Member shall offer or give any product of the
Trade or sell below his posted price any such product for test pur-
poses without prior approval of the Code Authority.
SECTION 22. The Code Authority shall, in cooperation with the
Code Authority for the Rubber Tire Manufacturing Industry, make
a complete study of the practice of leasing tires to taxicab and bus
companies and submit recommendations to the Administrator within
ninety (90) days from the approval of this Code for the elimination
of any unfair practices which may exist in this field.







523


SECTION 23. No Member shall directly or indirectly make any al-
lowance whatever on used solid or pneumatic truck and bus tires or
used tubes. Nor shall any member be instrumental in disposing, in
any manner, of used solid or pneumatic truck and bus tires or tubes
for the credit of the customer.
SECTION 24. No Member shall indicate, or permit any employee to
indicate, either directly or indirectly, or by inference in advertising
or selling, that breaker strips are plies. Plies extending from the
heel of one bead to the heel of the other bead, if of substantially the
same construction as other plies in tire, shall not be considered as
breaker strips.
SECTION 25. No Member shall sell, or offer for sale, any recapped
or retreaded tires unless the words "Recapped or "Retreaded "
are conspicuously and permanently marked, stenciled, or branded in
letters of not less than three-eighths inch in height on passenger car
sizes, and one-half inch in height on truck and bus sizes, on the side
wall and wrapper thereof.
SECTION 26. No Member shall advertise or use or permit to be ad-
vertised or used, such terms as "unconditional guarantee" when
conditions are in fact imposed on the replacement or exchange of
tires and tubes.
SECTION 27. No Member shall advertise, make, offer, or extend any
guarantee, warranty, or adjustment policy on second, discontinued
lines, rebuilt, repaired, or used storage batteries for a period longer
than ninety (90) days.
SECTION 28. No Member shall sell, or offer for sale, any storage
battery which is not marked or branded with respect to capacity and
quality, such marking or branding actually to designate capacity or
quality, or to refer by type or number or other designation to pub-
lished specifications with respect to capacity and quality.
SECTION 29. No Member shall sell, or offer for sale, any battery as
a rebuilt battery when in fact all positive and negative plates and
separators have not been replaced with new ones, or in which the
plates are of a brand other than that shown on the branded parts
used.
SECTION 30. No Member shall sell, or offer for sale, any rebuilt
or repaired battery which is not marked and/or branded plainly and
permanently rebuilt" or repaired as the case may be.
SECTION 31. No Member shall make or extend any warranty, guar-
antee, and or adjustment policy as to time, mileage, or performance
of any battery, and/or make any adjustment or allowance beyond the
terms of the warranty, guarantee, and/or adjustment policy offered
by the manufacturer or brand owner of said battery, and in no case
shall make or extend any warranty, guarantee, adjustment or allow-
ance on batteries beyond the terms of the standard guarantee and
adjustment policy of the Electric Storage and Wet Primary Battery
Industry, as provided in the Code of Fair Competition for said
Industry (approved October 3, 1933); nor shall any Member adver-
tise or use or permit to be advertised or used, such terms as uncon-
ditional guarantee when conditions are in fact imposed on the
replacement or exchange of any battery; nor shall any Member adver-
tise, describe, or refer to an adjustment policy as a warranty or
guarantee on batteries.







524


SECTION 32. No Member of the Trade shall offer or render rental
battery service or battery recharging without reasonable com-
pensation.
SECTION 33. No Member shall render service of any character, away
from such Member's premises other than in connection with the
delivery of new products of the Trade, without reasonable
compensation.
ARTICLE VIII
A. COMPLAINTS AND APPEAL
SECTION 1. Any interested party shall have the right of com-
plaint to the Code Authority or its duly constituted agencies and
prompt hearing and decision thereon in respect to any matter aris-
ing under this Code. Such complaint must be communicated, and
promptly confirmed by telegraph or in writing, to the Code Author-
ity, or its duly constituted agencies within a reasonable period of
time after the complaint arises.
SECTION 2. Any interested party shall have the right of appeal to
the Administrator under such fair procedure as the Administrator
shall prescribe in respect to any decision, rule, regulation, order,
finding, or omission to act, of the Code Authority.

ARTICLE IX
A. 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 sub-section (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule or regula-
tion issued under said Act.
SECTION 2. This Code, except as to provisions required by the
Act, may be amended or modified on the basis of experience or
changes in circumstances. The Code Authority may recommend any
amendment or modification to the Administrator and upon approval
thereof by the Administrator, after such notice and hearing as he
may prescribe, the same shall become binding as a part of this Code.

ARTICLE X
A. MONOPOLIES
SECTION 1. No provision of this Code shall be so construed or
applied to permit monopolies or monopolistic practices or to elim-
inate, oppress, or discriminate against small enterprises.

ARTICLE XI
A. EFFECTIVE DATE AND TERMINATION
SECTION 1. This Code shall become effective on May 14, 1934,
except. as may be otherwise stated in the Executive Order approving
the same, provided, however, that if prior to said date the Adminis-
trator on his own initiative determines that an emergency due to






525


destructive price-cutt.ing, as stated in Article VI, Se(ction 4, of this
Code, exists in the Trade, the Administrator may thereupon cause
to be determined the lowest reasonable cost as set forth in said
Section 4 of Article VI and such determination may thereupon be
announced to the Members of the Trade in such manner as the
Administrator shall direct but shall not become binding upon such
Members until the aforesaid effective date. This Code shall con-
tinue in effect until June 16, 1935, or until such time prior thereto
when the President. shall, by proclamation, or the Congress shall,
by joint resolution declare that the emergency rece-gnized by Section
1 of the Act has ended. Provided, however, that Section 4 of
Article VI of this Code shall cease to have effect on October 1, 1934
unless prior to said date the Code Authority shall have recomnu(ended
continuance thereof and the Administrator shall have approved such
recommendation. In connection with any such recommendation, the
Code Authority shall submit data to support the same.
ARTICLE XII

A. SUPPLEMENTS

SECTION 1. Codes for the Wholesale Rubber Tire and Battery
Trade, the Tire Rebuilding and Retreading Industry or Trade, and
such other groups, industries or trades associated with this Trade,
may be filed with the consent of the Code Authority and the Admin-
istrator, as supplements to this Code, and upon due approval thereof,
shall be operative as a part hereof, under such conditions as the
Administrator may prescribe.

ARTICLE XIII

A. COORDINATION

SECTION 1. The Code Authority shall, in cooperation with the
Code Authorities of the Rubber Tire Manufacturing Industry and
the Electric Storage and Wet Primary Battery Industry, submit
recommendations to the Administrator for the establishment of joint
committees for the coordination of the Code for this Trade with that
of the Rubber Tire Manufacturing Industry and the Electric Storage
and Wet Primary Battery Industry, with a view to joint consider-
ation and proper determination of any common problems which
relate to the distribution of products of the Trade.
Approved Code No. 410.
Registry No. 807-18.




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PAGE 1

Ap p rov e d Code No. 410 Registry No. 807-18 NATIONAL RE C OVER Y ADM I NISTRAT I ON CODE OF F AI R CO MPE TITIO N FOR THE RETAIL RUBBER TIR E AND BATTERY TRADE I L, AS APPROVED O N MAY 1 , 1934 BY PRESIDENT ROOSEVELT WE DO OUR PART ..... I ' ""--US. UNITED STATES G O VERNMENT PRINTING OFFICE WASHINGT O N: 1 934 F o r sale by the Supe r intendent of Docum e nts, Washin g ton, D.C. Price 5 cenw V

PAGE 2

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 Comme rce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, :Mas . : 1 01 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: Cbumber of Commerce. Dallas, Tex. : Chamber of Commerce Building. Detroit, Micb.: 801 First National Bank Building. Houston, Tex. : Chamber of Commerce Building. Indianupolis, Ind. : C h amber of Commerce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas City, Mo.: 1028 Baltimore Avenue. Los Angeles, Calif.: 1163 South Broudway. Louisville, Ky.: 408 Federal Building. Memphis, Tenn.: 229 Federal Building. Minneapolis, 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 Commercial Tru ~ t Building. Pittsbu :r;g h, Pa. : Chamber of Commerce Building, Portlund, Oreg.: 2'15 New P st Office Building. St. Loui s , Mo. l 506 Olive Street. San Francisco, Calif. : 310 Customhouse. Seattle, Wash.: 809 F ' ederal Office Building.

PAGE 3

Approved Code No. 410 CODE OF FAIR COMPETITION FOR THE RETAIL RUBBER TIRE AND BATTERY TRADE As Approved on May 1, 1934 BY PRESIDENT ROOSEVELT EXECUTIVE ORDER CODE OF FAIR COMPETITION FOR THE RETAIL RUBBER TIRE AND BATTERY TRADE An application having been duly made, pursuant to and in full compliance with the provisions of Title I of the National Industrial R ecove ry Act, approved June 16, 1933, for my approval of a Code of Fair Competition for the Retail Rubber Tire and Battery Trade, and hearings having been held thereon and the Administrator ha ing rendered his report containing an analysis of the said Code of Fair Competition together with his recommendations and findings with respect thereto, and the Administrator having found that the said Code of Fair Competition compl ies in all respects with the pertinent provisions of Title I of said Act and that the requir e ments of clauses (1) and (2) of sub-section (a) of Section 3 of the said Act have been met : NOW, THEREFORE, I, Franklin D. Roo s evelt, President of the United States, pursuant to the authority vested in me by Title I of the National Indu strial Recovery Act, approved June 16 , 1933, and otherwise, do adopt and approve the report, recommendations, and findings of the Administrator and do order that effective May 14, 1934, unless just cause to the contrary shou ld theretofore be s hown, the said Code of Fair Competition be and it is hereby approved; provided, that if prior to said effective date the Administrator on his own initiative determines that an emergency due to destructive price-cutting, as stated in Article VI , Section 4 of said Code, exists in the trade, the Administrator may thereupon cause to be d e ter mined the low est reasonable cost as set forth in said Section 4 of Article VI and such determination may thereupon be announced to the members of the trade in such manner as the Administrator shall dir ec t but sha ll not become binding upon such members until the effective date of the Code; and provided further, that in connec tion with the existence of an emergen c y due to destructive price cutting and the determination of lo west reasonable cost thereunder 55984. -544-2-34 (507)

PAGE 4

508 as stated in Article VI Section 4 of the Code, in order to eliminate unfair competition the dministrator may establish for the period of such emergency a uniform guarantee and warranty applicable to the sale or offering for sale of any/roducts of the trade; and pro vided further that the pro, i ions o Article I Section 2 insofar as they prescribe a waiting J?eriod between the filing with the Code Authority or its luly constituted agency and the effective date of r vised price-Ii ts, be and they are hereby stayed pending my furth r order or the order of the Administrator; and provid d further, that within ninety (90) day of the approval of the Code the ode Authority shall submit recommendat10ns to the Admini trator for the purpose of ren lering the hour and wage pro ision of this Code as consistent as possible with uch provisions in codes of related trades. Approval recommended : HUGH s. JOHNSON' Administrator. THE WHITE HousE, May 1, 1934. FRANKLIN D. ROOSEVELT.

PAGE 5

LETTER OF TRANSJVIITTAL The PRESIDENT, The lY hite House. Srn: The proposed Code of Fair Competition for the Retail Rub ber Tire and Battery Trade was submitted to the Administrator on August 23, 1933. Further consideration of the Code was postponed pending approval of the Code for the Rubber Tire Manufacturing Industry. A Hearing was conducted in Washington on December 15, 1933. The Code was revised durinothe recess of this Hearing and is submitted in its present form fur approval. Every person who requested an appearance was properly heard in accordance with statutory and regulatory requirements. HOURS AND WAGES Under this Code, employees are limited to 48 hours per week with a restriction of 10 hours per day and 52 hours in any one week. Over time in excess of 48 hours per week shall be paid at the rate of time and one third. Watchmen are limited to 54 hours per week and not more than 6 days per week. These maximum hours refer to the availability of the employee in the employer's establishment. The Code provides for a minimum wage of $0.40 per hour for part time employees or employees paid on an hourly b.asis in Northern St!ltes and $0.35 per hour in Southern States. Minimums for salaried employees range from $12.00 per week in towns of less than 2,500 population to $15.00 per week in cities of 500,000. OTHER PROVISIONS OF THE CODE The Code provides for the posting of prices in a conspicuous manner in any dealer's establishment for the guidance of consumers. It also provides that whenever the Code Authority may determine that destructive price cutting exists in any trade area to the extent that it endangers the provisions of the Code, upon certification, the Administrator may declare an emergency and cause the lowest re.a sonable cost to be detennined for such trade area-such lowest rea sonable cost being the lowest price at which any dealer may sell products of the Trade in that area during the emergency. The Trade has adopted thirty-four (3'4) trade practice provisions in this Code, designed to eliminate various :forms o:f unfair competi tion. ~rfany of these were originally incorporated in the Codes for the Rubber Tire and Electric Storage Battery Indu st ries. Every effort has been made to coordinate the Codes for this Trade with the respective Industries supplying its products. The Code further provides however that the Code Authority shall make recommenda tions to the Administrator in regard to the coordination of this Code (509)

PAGE 6

510 with that of the Code uthority of the Rubber Tire Manufacturing Indu try and the El ctric Storage Battery and Wet Primary Battery Indu try, for administrative purpo . Supplemental "odes for the vVhol ale Tire and Battery Trade an l the Tire Rebuilding and Retreading Indu try or Trade may be ubmitted as part of thi s Code at a later date. E OO NOMIC EFFECT OF CODE Sales in the Rubber Tire Manufacturing Industry declined from $675,000,000 to $30 0,000,000 or 55 % from 1929 to 1933. Sales in the Electric Storage Battery Industry declined from $109,000,000 m 19 29 to about $65,000,000 or 40%, in the same period. In 1929, there were 154,000 establishments engaged in the re tailing of tires and b atte ries, according to the Cen us of Distribu tion for that year. Sales of tires composed 85% of the total sales of the products of the Trade, covered by this Code. No exact data are available as to the number of establishments selling tires and batteries or the number of employees involved. It is believed that some 175,000 establishments will be affected by this Code, insofar as the trade pra c tices. Tires and batteries are sold in many types of establishments, including filling stations, motor vehicle retailers, garages, tire and battery stores, automotive accessories stores, de partment stores. The Division of Research and Planning estimates there are about 100,000 employees engaged in the Trade. The Trade itself estimates 150,000 employees. In the absence of any data, no estimate can be made as to re-employment. Prior to last .Au gust, the Trade has stated that employees averaged from sixty to seventy hours per week. The R eta il Rubber Tire and Battery Trade urgently needs a Code of f a ir competition. As you know, it was necessary for this Admini stra tion to intervene on March 30th to end a wave of destruc tive price c utting which had spread thruout the country. In trans mitting the Code for the Rubber Tire Manufacturing Industry for your approval, I stated that th e reclamation of this Industry and Trade from the destructive competition which has existed, must be a continuing task over a long period of time. This Code is designed to supp l ement the Manuf acture rs' Code, and to further assist the Industry and Tr ade in e limin a ting the type of unfair competition which has prevailed. FINDINGS The Deputy Administrator in hi s final r epo rt to me on said Code h aving found a herein set forth and on the ba sis of all the proceed ings in thi matter : I find that: (a) Said Code is well de iITTlecl to promote the policies and purpose of Title I of the National Indu trial R ecovery Act, includ ing removal of obstructions to the f ree fl.ow of interstate and forei~ commerce which tend to dimini h the amount th reof and will provide for the general welfare by promoting the organization of ind . ustry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and

PAGE 7

511 management under adequate governmental sanctions and supervi sion, 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 temporarily required), by increasing the consumption of industrial and agricultural products through incr e a s ing pur c hasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating indu s try. (b) The Code as approved complies in all respects with the perti nent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub section (b) of Section 10 thereof; and that the applicant association is a trade association truly representative of the aforesaid Trade; and that said association imposes no inequitable restrictions on admission to membership therein. ( c) The Code is not designed to and will not permit monopolies or monopolistic practices. ( d) The Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. ( e) Those engaged in other steps of the economic process have not been deprived of the right t-0 be heard prior to approval of said Code. It is recommended, therefore, that this Code be approved. Respectfully, HUGH s. JOHNSON' A dministra:tor. MAY 1, 1934.

PAGE 8

CODE OF FAIR COMPETITIO FOR THE RET IL RUBBER TIRE AND BATTERY TRADE To effect the policies of Title I of the National Indu trial Re covery Act, the following prov1 ion. are hereby e tablished as a Code of Fair Competition for the Retail Rubber Tire and Battery Trade, and shall be the tandards of fair competition for this Trade, and hall be binding upon every member thereof. ARTICLE I A. DEFI :rJTION SEOTION 1. The term "Retail Rubber Tire and Battery Trade" or "Trade", as used herein, shall mean the sale or offering for sale to the ultimate consumer and not for re ale purpose , of: (a) Solid or pneumatic rubber tires and pneumatic rubber tubes; (b) Automotive storage batteries for starting, lighting, and/or ignition service and radio receiving storage batteries; ( c) Tire or battery parts and accessories ; (d) Automobile rims and wheels in connection with change-over from one type of tire equipment to another ( e) The servicing of ~roducts of the Trade. SECTION 2. The term ' Member of the Trade " or " Member ", as use l herein, includes but without limitation, any individual, partner ship, association, corporation, or other form of enterprise, and any subsidiary or affiliate of the same, engaged in the Trade, either as employer or on his or its own behalf. SECTION 3. The term '~1ember of the Code", as used herein, includes any ~1ember of the Trade who shall expres ly signify assent to this Code. SECTION 4. The term " service " or " servicing " as used herein, shall include in addition to the direct servicing or repairing of products of the Trade the rendering of any service to a en tomer a part of a transaction of sale or offer of sale of any product of the Trade to such cu tomer, and the rebuilding of such products by the :Member of the Trade. ECTIO 5. The term "Association', as used herein, mean the National Tire Dealers Associaton Inc., a corporation organized an l exi ting under the laws of the State of New York, and at pre ent having its principal office at Chicago Illinois, or uch uccessor corporation thereto a may h reafter be duly con tituted. ECTION 6. The term " employee ", a u ed herein, include any and all per ons engaged in the Trade, howe er com pen ated, except a : Member of the Trade. SECTION 7. The term by whom such employee i mployer as u ed herein include compen ated or employe<1. (512) an one

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513 SECTION 8. The terms "the President", "Act", and "Admin istrator", as used herein, mean, respectively, the President of the United States, Title I of the National Industrial Recovery Act, and the Administrator for Indu strial Recovery. SECTION 9. The term " Southern States", as used in Articles IV and V herein, shall m e an Alabama, Arkansas, District of Columbia, Florida, Georgia l(entuck:y, Loui siana, 1\1aryland, Missis ippi, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia , and ,iV es t Virginia. SECTION 10. The term . "Northern States", as used in Articles IV and V herein, shall mean the re s t of the United States, but not Alaska, Hawaii or Puerto Rico. SECTION 11. Population for the purpo ses of thi s Code shall be determined by reference to the lat e t Fed era l Censu ARTICLE II A. ADMINISTRATION SECTION 1. A Code Authority i s hereby established, consisting of nine voting mem . bers representative of the trade, to be appointed by the Administrator, consisting of the following: . Six members repre se ntative of Members of the Code who are inde2end, e nt tire and battery dealer s . One such M ember sha ll be elected from each of the six geographical Region s as defined in Section 3 of this Article : One member shall be repre entative of l\1emb ers of the Code who are distributors of petrol e um products, distributing spec ial brand tires, tubes, and batteri es : One member shall be representative of Memb ers of the Code dis tributing special brand tires, tube s and batteries throu gh mail order, chain or department stores. One member shall be representative of Memb ers of the Code owned or controlled by rubber tire manufacturers and known as company retail stores. (a) The G ene ral Manager of the Association s hall be an ex officio member of the Code Authority and shall act as its Chairman with no voting power. (b) One alternate shall al so be appointed by the Administrator for each member of the Code Authority , repre sentative of the same class of Members of the Code as his principal with full power to ac t in the absence of his principal. ( c) The nine persons appointed to constitute the Code Authority and their alternate shall serve for such terms as may be designated by the Administrator, provided, however, that any per on appointed may be removed by the Admini st rator at any time. SECTION 2. In addition to member s hip as above provided, there may be from one to three persons to be known as Administration Members, without vote and without expense to the Trade, to be a pointed by the Administrator, to serve for such terms as he may specify. 65984-544 2--34-2

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514 SE TI 3. The geoITTaphical Reaions for the purpose of lection of he ind p nd . nt dealer m mbers of the o le Authority hall be con t itut e d a s f llow : tl a nti 1 ent r a l Ea tern, ou hern, 1Ve ~ tern Pa ific, with such b 1m l a ri t h e r e o a the Admini trator may pr c rib . SEC T IO 4 . E a h trade a s ciation tlir ctly r indir ctly partici pa ti n g in th e . l tion or activiti of the Cod \.uthority hall: ( a ) Im po no i n e quitable r e t ricti n on m e mb e r hip, an (b) S ubmit to the Administrator true copie of it articl of a ciati o n b y -law r e gulations, and an am ndment when made th ere to, t o ge ther with uch oth r information a to memb r hip or ga nizati o n a n l a tivibe a. s th Admini trator may deem nee ary to e ff ec tuat e the purpo es of the Act. 'Ec T ro .. T 5 . In rder that the Code uthorit y s hall at all time b r tr ul y r ep r e ntativ of the Trad e and in ther re . p e ct omply w it h t l 1e p r oYi s i o n s of the Act, the \..clmini s tr a tor n a y pre ribe su c h h ea ri1 1 0 as he may de e m prop e r; an d th r e aft r if h shall ,find that th e Co d e Au t hority is not truly repr e ntativ or d es not in oth e r re p e ct comply with the provi . i o n of th e A c t, may r quire nn appropriate modification of the Code Authority. S E TION 6. T thing ontained in thi . Co 1 s hall constitute the )n e mb r s o f the Code Authority partner for an purpose. or hall 'thi Code be con trued to render any member of the ode uthority liabl e in any manner to anyone for an. a c t o f any other m e mber, J.>ffi c er, ag e nt, or emplo} ee of the Code uth o rity. r hall this Cod e b e con s trued to render any member of the o le Authority, ex erci ing r e asonable diligence in the conduct of hi s duties hereunder, liable to anyone for any action or omi io n to a c t nnd r this ode, ex ept for hi own wilfull malfea anc or non-feasance . SE C TION 7. Subject to such rules and regulatjons as may be i ued by the Administrator, the Code Authority shall have the following pow e r s and duties, in addition to tho e authorize l by other provisi-011s of this Code. (a) To in ure the execution of the provi ion s of this Code and provide for the compliance of the Tra le with th prov1 1011 of the Act. (b) To ad pt by-laws and rul and r oulation for its pr cedure and for th a dmini tration of the Cod e . ( c ) To obtain from l\I e mber s of the Tra l u h information and re1 ort s a a r e requir e d for the adrnini tration of the C de. In a lcli t ion t o inf o rmation required to b e s ubmitt e d to the Code An th rit y, I e mb 0 r s of the Trade subj ct to thi od e hall furni h su c h s t a ti tica l in f orm a tion as the Admini trat r may l e em nece ~ .-ary f r th e purp o es r ec i te d in S ec ti o n 3 (a) of th e A c t t uch Federal and Sta t noe n cie a h e may d e i g nate pro icl e cl th a t nothing in th i Co d ha ll re li eve an y l\ti e m b er of the Trad e of any xi ting o~li ga ti ons to furnis h rep r ts to any g ov e rnm e nt acre ncy. i: T o indi1clnal r e p or t ha ll b e di . clo l t o a ny o t h e r l\I e m bc r of th e Trade or an y oth r party ex r pt to . nc h ot h e r croy rnm e ntal ,.1g c n c i a ma y b e cli r ' t l b ' he A l ml ni tra t o r. ( d) T o us 11 11 tra d e a .. ociation an d othe r a ge n c e . a it le e m p roper for h c a rryin; o u t of any o f it ac ti , \ ti e 1 ro Yi ( l ccl for h e r e i n, p roY i le l t h at n othing h r ei n h a ll r e li ev e th e C o l e \.u t hority

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515 of its duties or responsibilities under this Code and that such trade associations and agencies hall at all time be subject to and comply with the provisions hereof. ( e) To make recommendations to the Ad mini strator for the co ordination of the admini tration of this Code with such other codes as may be related to or affect Members of the Trade. (f) To appoint a Trad e Practice Committee which shall meet with the Trade Practice ommittees appointed und er such other codes as may be related to the Trade for the purpo se of formulating fair trade practices to govern r e lationships between employers under this Code and under such other code to the encl that such fair trade practices may be proposed to the Administrator as amendments to this Code and such other codes. (g) To cooperate with the Administrator in regulating the use of any N.R.A. insignia solely by those :Members of the Trade who have assented to and are complying with this Code. (h) To recommend to the Administrator further fair trade prac tice provisions to govern 1\fembers of the Trade in th eir relations with each other or with other trades. ( i) To define regional, di trict, and other trade area s and desig nate the boundaries thereof. (j) To establish, with the approval of the Administrator, a Con trol Board or Boards for any region, district or other trade area through such individuals or groups as the Code Authority shall des ignate, and to discharg e through such Board or Board s such of the powers and duties repo sed in the Code Authority as may be necessary for the effective administration of this Code in their r espective re gions, districts. or other trade areas, provided, how ever, that noth ing herein shall relieve the Code Authority of its duties or re spo sibilities under this Code. (k) To reYok e any authority granted by it pursuant to paragraph (j) of this Section 7 whenever it shall determine that it i s not being fully or properly exercised. (1) To coordinate and harmonize the activitie s of the various Control Boards. (rn) It being found neces ~a ry to support the administration of this Code, in order to effectuate the policy of the Act and to main tain the tandards of fair competition established her eunder, the Code Authority is authorized: . (1) To incur such rea sonab le obligation s as are nece sary and proper for th e forego ing purpo es and to meet such obligations out of fund whi ch shall be held in tru. t for the purposes of the Code and rai sed as h erei nafter provided : (2) To submit to the Administrator for hi approval, sub j ect to such notice and opportunity to be heard as he may de em necessary: (a) An itemized budget of its estimated expenses for the fore going purposes, and (b) An equitable basis upon which the funds neces~ry to upport such budaet sha ll be contributed by all Members of the Trade entitled to the b enefit accruing from the maintenance of such standards, and the administration th ereof; (3) After such budget and basis of contribution have ben ap prov ed by the Administrator, to determine and collect equitable con

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516 tribution as aboYe t forth and to that end, if neces ary, to institute leo-al proceedinotherefor in its own nam . ( 4) Each 1 mber of the Trade shall be liable for his or its qui table ontribution to the xpenses of the maintenance of the ode Authority as hereinabove provided. Only :Member of th Tra le complying with the Code and making su h contribution hall be ntitled t participate in the selection of th member of the ode Authority or to receive the benefits of its Yoluntary a iviti s or to make use of any .R.A. insignia. ECTION 8. If the Ad1ninistrator shall determine that any action of the Code Authority or any agency thereof may be unfair or unju t or contrary to the public interest, the Admini trator may require that such action be u pended to afford an opportunity for inve ti gation of the merits of such action and further consideration by such Code Authority or agency pending final action which hall not be effective unless the Administrator approve the same or unle he shall fail to disapprove the same after thirty 30) days noti e to him of intention to proceed with such action in its original or modified form. SECTION 9. The Code Authority shall desio-nate an impartial agency for the collection of statistics, data, reports, and information under the Code. Every Member of the Trade shall prepare and file with such impartial agency at such times and in such manner and form as the Code Authority may designate such information and reports pertinent to the operation of this Code as the Administrator may from time to time require. Such reports and/or records may be either sworn or unsworn as required. (a) Any refusal or persistent or deliberate neglect by any :Member of the Trade to file or furnish information required under thi Article shall constitute an unfair trade practice and a violation of this Code. ARTIOLE I I I A. INDUSTRIAL RELATIONS POLICIES SECTION 1. Employees shall have the right to organize and bar gain collectively through representatives of their own choosing, and hall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in elf-organization or in other concerted activitie for the purpose of collective bargaining or other mutual aid or protection. SECTION 2. No employee and no one seeking emplo ment hall be required as a condition of employment to join any company union or to refrain fr m joining, organizing, or a i ting a labor organiza tion of his own hoo ing. E TIO 3. Employ r hall comply with the maximum hour of labor, minimum rat s of pay and other conditions of employment, ar . proved or pre crib d by the President. SECTION 4. N per on under ixteen (16) 'ear of age hall be employed in the Trade. No per on under eight en ( 1 ) ears of age shall be employed at operations or ccupation which are danCYer ous to health. In any State an employer hall be deemed to have

PAGE 13

517 complied with this provisi on as to age if he shall have on file a valid certifi cate or permit duly signed by the Authority in such State empower ed to is sue employment or age certificates or permits showina that the employee is of the required age. b SECTION 5 . No provision in this Code shall supersede any State or Federal Law which imposes more stringent requirements on em ployer s as to age of e1nployees, wages, hours of work, or as to safety, health, sanitary or general working conditions, or insurance, or fire protection, then are im posed by this Code. SE TI ON 6. No employer shall reclassify employees or duties of occupations performed or engage in any other subterfuge :for the pur pose o:f defeating the purposes or provisions of the Act or of this Code. SECTION 7. All employers shall pos t and keep posted copies of this Code in conspicuous places accessible to all employees. Every Mem ber of the Trade shall comp ly with all rules and regulations relative to the posting of provisions of Codes of Fair Competition which may fro m time to time be prescribed by the Administrator. SECTION 8 . Every employer sha ll make reasonable provision for the safety and h ealth of his employees at the place and during the 1 hour s of their employment. ARTICLE IV A. HOURS SE CTION 1. No employee shall be permitted to work more than :fortyeig ht (48) hour s in any one week, nor more than ten (10) hours in any one day, exc ep t that in cases of necessity such employees may work in excess of forty-eight ( 48) hours in any one wee k, and ten (10) hours in any one day, provided that time and one third shall be paid for all hours of emp lo yment in excess of :forty-eight ( 48) hours in any one week or ten (10) hours in any one day, but in no case sha ll an employee be permitted to work more than fifty-two ( 52 ) hours in any one week . SECTION 2 . vv atchmen shall not be permitted to work more than Fifty-f our ( 54) hours in any one week, nor more than six ( 6) days in any one week. SECTION 3. Employe es engaged in a managerial, executive or super \Tisory capacity in cities of 100,000 population or more or in the im m ediate trade areas of s u ch cities, who regularly receive not l ess th an Thirty-fi ve Dollars ($35.00) per week in Northern States and not l ess than Thirty Dollars ( $30 . 00) per week in Southern States, and such employees in places of less than 100,000 population or in the immediate tr ade areas of such places who regularly receive not l ess than Thirt y Dollar s ($30.00) per week in Northern States and not le ss than Twenty-five Dollars ($25.00) per week in South~rn State s, and outside salesmen, shall be exempt from any provisions as to maximum hours. SECTION 4. No emp l oyer shall knowingly permit any employee to work for any time which, when totaled with that already performed with another employer or employers in this Tracle exceeds the max imum permitted herein.

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518 E TIOX 5 . The ma.-mrnm hour. h reinabo, pre . cribecl ref r to fh e aYailability of the 1 pl yec in the tabli hment r on the prem i es of th em1 lo rer at the latter requ t whether or n t the emplo r is a tively engar cl in specific ta k throughout th se hour . ECTION 6 . The ode Authorit 1 l all proc ed immediately to a study of the problem of con cut.1ve hour of emplo m nt ith re gard to th nec0s s ities of th Tra l in the maintenan ce of erYi e to the publi , and mak" recommendations within ninety (9 0) day , whi h upon appro al by the Admini trator after uch noti an d hearin o a. he may pre c rib hall be eff ecti e as a part of this ode. ARTICLE V A. \V AGES SECTION 1. No employee sha ll be paid per week of fort -eig ht ' ( 4.8) hour s l e s than at the rate of: $15.00 per week-In any c i ty of 500 000 population or over or in the immediate trade area of such city, in the orthern State ; $14.00 per wee k-In any ci t y of 500,000 population or over or in the immediate trade area of such city, in the outhern tate ; $14.50 per w e k-In any city between 250 000 population and under 500,000 population or in the immediate trade area of s u h city, in the Northern States; $13.50 per weekIn any city b e tw een 250 000 and under 500,000 popu lation or in th e imm ediate trade area of uch city, in the So u thern States $14.00 per week -In any place between 2,500 and und e r 250,000 population or in the imm ed iat e trade area of suc h place in the Northe rn States; $13.00 per week-In any place b e t11een 2 500 and und er 250,000 population or in the immediate trade area of s u c h place, in th Southern States $12 . 00 p r week-In places e l se wh re. SE TION 2 . A part time emp l oyee or one pa id on an hourly ba sis shall be paid not le than forty cents ( 40 9 1 ) per hour in the Northern i...:tate nor le s than thirty-five c nts (35 . ) per hour in the Southe rn tate . A part time emp l oy e i one who e working h o ur entitle him to le than th e applicab l e min imum w ekly amount pecified in ection 1 of thi s Article. Any emp l o 1 e r may e tabli h a regular full time week of l e s than th e hour specified in ection 1 of this Articl for all r part of hi mp l oye s 1 r "id e d howe r that the minimum weckl3 11ag s e tabli heel in aid S ction hall not be thereby r du ed . ECTIO 3. No mployee, who e norma l full time weekly hour are r due cl I nr nant to thi Code by 20% or le ~ , sha ll ha, hi s or her full .im c ,Y ckly earning r clue cl. N employee who e normal full tun weekly hour are r ducecl by more than 20 7' pur uant to thi. cl hall hav hi or h r full time 11eekly arnings reduced by more th, n 10 7c , an l in no e , en t l es than the minimwn weekly wage establi hed in Se tion 1 of this Article.

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519 SECTION 4. A person whose earning capacity is limited because of age, phy ical or mental handicap may be emplo ed on light work at a wage below the minimum established by this Code if the !\1ember of the Trade obtains from the State Authority de ignuted by the United tates Department of Labor a certificate authorizing such per on s employment at such wages and for such hours as shall be stated in the certificate. Every Member of the Trade shall file monthly with the Code Authority a list of all such persons employed by him, hawing the wages paid to, and the maximum hours of work for such employees. SE TION 5. Female employees performing substantially the same work as male employees shall receive the same rate of pay as male employees. SECTION 6. This Article establishes minimum rates of pay which shall apply, irrespectiYe of whether an employee is actually com pen ated on a time rate, piece-work, or other basis. ARTICLE VI l A. OPEN PRICES AND DESTRUCTIVE PRICE-CUTI'ING SECTION 1. Every !\1ember shall file with the Code Authority or its duly constituted agency, in such manner and form as the Code Authority or its agency may determine, a schedule of such Mem ber's retail and commercial prices, discounts, terms and conditions of sale (including trade-in allowances, if any) for any product or service of the Trade or any combination thereof. SECTION 2. Thereafter no Member shall sell or offer for sale any produ ct or service of the Trade or any combination thereof below the price stated in such filed schedules, provided however that such schedules may be changed on not less than three (3) days notice to the Code Authority or its agency, in such fair manner as the Code Authority or its agency shall determine. No advance notice of change need be given in the event that any Member advances prices over his last filed schedule but this hall not be construed to include a waiver of the requirements of Section 1 of this Article. SECTION 3. Every ~!ember hall po t and keep posted conspicuously in his establishment or establishments, in a manner easily accessible to cu tomers, a copy of his prevailing schedule of filed retail prices, at which any product or service of the Trade or any combination thereof will be sold or offered for sale by him. The Code Authority or it agency may determine the manner and form of such schedule and po ting thereof. SECTION 4. Destructive price-cutting as set forth herein is declared an unfair method of competition and is forbidden. \Vhenever the Code ..... uthority determines that an emergency exists throughout the Trade or within the Trade in any area, and that the cause thereof is destructiYe price-cutting such as to render ineffective or to seriously endanger the maintenance of the provisions of this Code or of the Act and the Code Authority c rtifies its conclu ions based on such determination to the Admmistra.tor, or the Administrator deter mine on his own initiati, e, that an emergency exists as herein set 1 See p~ragraph 2 of order approving this Code.

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520 forth the Aclmini -irntor ma, th r upon declare uch an mcrgency to e.i. t, u bject to th pro Yi ion of Arti le XI of this ode. (a) Th r upon the Ac1mini trator may can e to be determined in acconlan with :uch rules and regulations a. h may pre cr ibe, the low t rea onabl co . t of any product r senice of the Trade in any ar a cone rning ,Yhich such emeraency hall haYe be n leclared to xif-:t. Snch lowe t ea onable o t wh n determined as afore aid, hall be announced to l\Iember of the Trade in u h mann r a the Ac.lmini. trator shall direct. (b) Thereafter until the A lmini trator hall have declared that sZ1.id emergency ha cea eel to exi t, no l\fember of the Trade hall sell, or offer t sell, or otherwi e di po e of any product or ervice of the Trade for whi h the lowe. t rea onable co t has b en deter mined, as hereinabove et forth at a net realized price less than the lowe t rea. onabl co. t so e tabli heel. ( c) During the period o:f the emergency, the determination of lowe st reasonable cost may be revised from time to time at rea on able intervals or a changes in circum. tances or experience may indicate. ( cl) The Admini trator may at any time declare, in such fair man ner as he shall determine, that the period of emergency has ended . ARTICLE VII A. TRADE PRACTICES SECTION 1. No member shall use adverti s ing (whether printed , radio, display, or of any other nature) or other repre entation which is misleading or inaccurate in any material particular or which re fers inaccurately to competitors or their commoditie price , values , credit terms, policies, or services. No Member shall, in any way, misrepresent any commodity (including but without limitation, its u e, trade mark, grade, quality, quantity, origin, size, sub tance , character, nature, finish, material content, preparation or pecifica tion ) or credit terms, values, policies, serYices, or the nature or form of the busines conducted. SECTION 2. No lVIember shall u e adverti ing which inaccurately lay claim to a policy or continuing practice of under elling competitors. SE TION 3. No :Member shall adYertise, sell or offer for ale any products of the Trade or ser Yice thereof in combination offers as "free ', or any unit of such combination offer at le s than the po ted price for such unit. E TION 4. No :Member hall make any unauthorize l u e of trade name trademarks, or sloo-a n identical with or in imitation of tho e nlrea ly in u e by any other l\Iember of the Trade or any fember of the Rubber Tire l\Innufacturing Indu try or th Electric torage and ,, et Primary Battery Indu s try with the purpo c or effect of mi leadino or deceivina custom rs in any material particular. 8ECTIO 5. No l\1ernber hall falsely adYerti e or make any ther r pr entation referring to, containing, or embodying a trade name or trad -mark of any manufacturer or li tributor, or any uch terms as "All Standard l\fakes ", in connection with the off ring and/o r

PAGE 17

521 sale of any tires, tubes, or battries, bearing a trade-mark or trade name. SECTION 6. No :Member shall represent itself as a " franchised dealer", by display or otherwise, for a particular product, when in fact such Member is not so "franchised." SECTION 7. No Member shall advertise in any form or by any means the selling of " change-over " tires, or the offering of any trade-in allowance on used products of the Trade, provided that nothing herein shall limit in any way the operation of Section 3 of Article VI. SECTION 8. No Member shall fill at old prices any orders received or showing postmark after 12: 01 A.M. of the day upon which a Member's new prices become effective. No Member shall solicit orders at old prices after new prices have become effective. No ~1ember shall give any information to any class of consumers regard ing price changes prior to their effective date. SECTION 9. No Member shall solicit or accept written or verbal orders, agreement , or contracts for the sale of any products of the Trade to any class of customers, the effect of which is to guarante _ e -prices on future deliveries. No Member shall renew or extend exist ing orders or contracts as a subterfuge in violation of this Section. For purposes of interpretation of this Section, orders delivered within thirty days (30) after date of order may be construed as "immediate delivery"; deliveries after such thirty (30) day pe riod shall be construed as "future delivery" and billed at prices in effect on delivery date. Should this provision work a hardship on any Member, such Member may apply to the Code Authority which shall have power to grant such exception as justice may require. SECTION 10. No Member shall allow a cash discount in exces of two (2%) per cent. No Member shall sell or offer for sale products of the Trade on a deferred, installment or time basis, unless the total selling price for such products includes an amount for legal interest and other usual carrying charges. SECTION 11. No Member shall solicit or accept at other than cur rent prices the reinstatement of any order previously canceled. SECTION 12. No Member shall withhold from or insert into any quotation or invoice any statement that makes it inaccurate in any material particular. No Member shall post-date or pre-date, or acquiesce in the post-dating or pre-dating of orders, invoices, or contracts. SECTION 13. No Member shall secretly make any payment or al lowanc e of a rebate, refund, commission, credit, unearned discount, or excess allowance, whether in form of money or otherwise, for the purpose of influencing a sale, nor shall any :M~ember secretly offer or extend to any customer any special service or privilege not extended to all customers of the same class. SECTION 14. No Member shall give, or knowingly permit to be given, or offer to give, anything of value for the purpose of in fluencing or rewarding the action of any employee, agent, or repr e sentative of another in relation to the business of the employer of such employee, the principal of such aaent, or the represented party. This section lrnll not b e c onstrued t o pr hibit the free and o-eneral

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522 distribution of articles used for advertising except when such articles are actually used for commercial bribery as aforesaid. SECTION 15. No Member s hall make, or publish any statement con cerning the name, reputation, se rvices, goods, products, policies, practices, or financial standing of any Member, its agents, repre sentatives, or emp loye es which is fal se or misleading in any material particular. SECTION 16. No l\1ember shall willfully induce or attempt to in duce the breach of existing contracts b etween competitors and their c u stomers by any false or deceptive m ea ns, or interfere with or ob struct the performance of any such contrac tual duties or services by any such means, with the purpo se and effec t of hampering, injuring or embarrassinocompetitors in their busine ss . SECTION 17. No Member shall brand or mark or pack any goods in any manner which is intend e d to or does deceive or mislead purchasers in any material particular with respect to the brand, grade, quality, quantity, origin, size, ubstance, character, nature, finish, material content or preparation of such goods. SECTION 18. After four months from the effective date of this Code no Member s hall sell, or off er for sale, " blemished " or " second '~ tires and tubes except to a Member's own employees for personal use and not for purposes of resale. SECTION 19. No Member shall under any circumstances sell or offer for sale new products of the Trade ( or "firsts") as "seconds", "used", or" changeovers." SECTION 20. No Member shall sell or offer for sale any products of the Trade of obsolete or discontinued design in a number in excess of ten units in any one establishment during any thirty (30) day ~eriod at special prices unless (a) Such Member shall notify the Code Authority or its duly constituted agency ten (10) days in advance of the intended offering for sale of such products, and (b) Such products are marketed in accordance with regulations of the Code Authority thereto appertaining, and (c) Such Member states the number, type and size of such products and the discount below the regularly established price at which such products are to be offered or sold, and ( d) Such Member indicates clearly to customers that such prod ucts are of obsolete or discontinued design. ( e) Advertising in any forrri or by any means clearly specifies that such products are of obsolete or dis c ontinued design. For the purpose of this Section, obsolete or discontinued designs shall be defined as all products of the Trade wh ic h have actually been discontinued from production. SECTION 21. No Member sh_a ll offer or give any product of the Trade or sell below his posted price any suc h product for test pur po ses without prior approval of the Code Authority. SECTION 22. The Code Authority shall, in cooperation with the Code Authority for the Rubber Tire Manufacturing Industry, make a complete study of the practice of l eas ing tire s to taxicab and bus companies and submit recommendations to the Administrator within ninety (90) days from the approval of this Code for the elimination of any unfair practic es which may exist in this field.

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523 SECTION 23. No Member sha ll directly or indirectly make any al lowance whatever on u sed solid or pneumatic truck and bus tires or used tubes. Nor shall any member be instrumental in disposing, in any manner, of used solid or pneumatic truck and bus tires or tubes for the credit of the customer. SECTION 24. No Member shall indicate, or permit any employee to indicate , either directly or indire ct ly, or by inference in advertising or selling, that breaker strips are plies. Pli es extending from the heel of one bead to the heel of the other bead, if of substantially the same construction as other plies in tire, shall not be considered as breaker strips. SECTION 25. No Member shall sell, or offer for sale, any recapped or retreaded tires unle ss the words "Recapped" or "Retreaded" are conspicuously and permanently marked, stenciled, or branded in letters of not less than three-eighths inch in height on passenger car sizes, and one-half inch in height on truck and bus sizes, on the side wall and wrapper thereof. SECTION 26. No Member shall advertise or use or permit to be ad vertised or used, such terms as " unconditional guarantee " when conditions are in fact imposed on the replacement or exchange o:f tires and tubes. SECTION 27. No Member shall advertise, make, offer, or extend any guarantee, warranty, or adju stme nt policy on second, discontinued lines, rebuilt, re:{)aired, or used storage batteries for a period longer than ninety (90) days. SECTION 28. No Member shall sell, or offer for sale, any storage battery which is not marked or branded with respect to capacity and quality, such marking or branding actually to designate capacity or quality, or to refer by type or number or other designation to pub lished specifications with respect to capacity and quality. SECTION 29. No Member shall sell, or offer for sale, any battery as a "rebuilt" battery when in fact all positive and negative plates and separators have not been replaced with new ones, or in which the plates are of a brand other than that shown on the branded parts used. SECTION 30. No Member shall sell, or offer for sale, any rebuilt or repaired battery which is not marked and/or branded plainly and permanently " rebuilt " or " r epaired " as the case may be. SECTION 31. No Member sha ll make or extend any warranty, guar antee, and/or adjustment policy as to time, mileage, or performance of any battery, and/or make any adjustment or allowance beyond the terms of the warranty, guarantee, and/or adjustment policy offered by the manufacturer or brand owner of said battery, and in no case shall make or extend any warranty, guarantee, adjustment or allow ance on batteries beyond the terms of the standard guarantee and adjustment policy of the Electric Storage and Wet Primary Battery Industry, as provided in the Code of Fair Competition for said Industry ( approved O c tober 3, 1933) ; nor shall any Member adver tise or use or permit to be advertised or used, such terms as "uncon ditional guarantee" when conditions are in fact imposed on the replacement or exchange of any battery; nor shall any Member adver tise, describe, or ref er to an adju stme nt policy as a warranty or guarantee on batteries.

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524 SECTION 32. No Member of the Trade shall offer or render rental battery service or battery recharging without reasonable com pensation. SECTION 33. No Member shall render service of any character, away from such Member's premises other than in connection with the delivery of new products of the Trade, without reasonable compensation. ARTICLE VIII A. COMPLAINTS AND APPEAL SECTION 1. Any interested party shall have the right of com plaint to the Code Authority or its duly constituted agencies and prompt hearing and decision thereon in respect to any matter aris ing under this Code. Such complaint must be communicated, and promptly confirmed by telegraph or in writing, to the Code Author ity, or its duly constituted agencies within a reasonable period of time after the complaint arises. SECTION 2. Any interested party shall have the right of appeal to the Administrator under such fair procedure as the Administrator shall prescribe in respect to any decision, rule, regulation, order, finding, or omission to act, of the Code Authority. ARTICLE IX A. MODIFICATION SECTION 1. This Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with tha provisions of sub-section (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule or regula tion issued under said Act. SECTION 2. This Code, except as to provisions required by the Act, may be amended or modified on the basis of experience or changes in circumstances. The Code Authority may recommend any amendment or modification to the Administrator and upon approval thereof by the Admjnistrator, after such notice and hearing as he may prescribe, the same shall become binding as a part of this Code. ARTICLE X A. MONOP0LIES SECTION 1. No provision of this Code shall be so construed or applied to permit monopolies or monopolistic practices or to elim inate, oppress, or discriminate against small enterprises. ARTICLE XI A. EFFECTIVE DATE AND TERMINATION SECTION 1. This Code shall become effective on May 14, 1934, except as may be otherwise stated in the Executive Order approving the same, provided, however, that if prior to said date the Adminis trator on his own initiative determines that an emergency due to

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525 destructive price-cutting, as stated in Art icle VI , S 0 ction 4, of this Code, exists in the Trad e, the Administrator may thereupon cause to be determined the low est r easonable co t as set forth in said Section 4 of Article VI and such determination may thereupon be announced to the Members of the Trade in uch manner as the Administrator shall direct but shall no t become binding upon such Members until the afore said effective date. This Code shall con tinue in effect until June 16, 1935, or until such time prior thereto when the President s hall, by proclamation, or the Congress shall, by joint resolution declare that the emergency recognized by Section 1 of the Act has ended. Provid ed, however, that Section 4 of Article VI of this Code shall cease to have effect on October 1, 1934, unless prior to said date the Code Authority shall ha ve recommended continuance thereof and the Administrator shall have approved such recommendation. In connection with any such recommendation, the Code Authority shall submit data to s upport the same. ARTI CLE XII .A. SUPPLEMENTS SECTION 1. Codes for the Wholesale Rubber Tir e and Battery Trade, the Tire Rebuilding and Retreading Industry or Trade, and such other groups, industri e or trades associated with this Trade, may be filed with the consent of the Code Authority and the Admin istrator, as supplements to this Code, and upon due approval thereof, shall be operative as a part hereof, under such conditions as the Administrator may pr esc rib e . ARTICLE XIII .A. COORDIN .A TION SECTION 1. The Code Authority shall, in cooperation with the Code Authorities of the Rubber Tire Manufacturing Industry and the Electric Storage and vVet Primary Battery Indu stry, submit recommendations to t he Admini st rator for the establishment of joint committees for the coordination of the Code for this Trad e with that of the Rubber Tire Manu:facturing Industry and the Electric Storage and Wet Primary Battery Industry, with a view to joint consider ation and proper determination of any common problems which relate to the distribution of products of the Trade. Approved Code No. 410. Registry No. 807-18. 0

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