Citation
Proposed code of fair competition for the commercial printing industry as submitted on September 6, 1933

Material Information

Title:
Proposed code of fair competition for the commercial printing industry as submitted on September 6, 1933
Portion of title:
Commercial printing industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
6 p. : ; 24 cm.

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

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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. 599-2-07."
General Note:
"637-A."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
004952585 ( ALEPH )
63654739 ( OCLC )

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NATIONAL RECOVERY ADMINISTRATION



PROPOSED CODE OF FAIR COMPETITION

FOR THE


COMMERCIAL PRINTING


INDUSTRY


AS SUBMITTED ON SEPTEMBER 6, 1933


WE DO OUR PART
UNIV. OF FL LIB.
DUI F.NT8 DEPT.




U.S. DEPO&ITORY
The Code for the Commercial Printing Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933


'i


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


4`0
71 ...


Ae:.


Registry No. 599-2-07


637-A


L_




























II


SUBn 'IED By

UNITED TYPOTHETAE OF AMERICA

(I)









"1
I











i-





















1







A CODE OF FAIR COMPETITION FOR THE PRINTING
INDUSTRY

AS ADOPTED BY THE CONFERENCE OF REPRESENTATIVES OF THE
PRINTING INDUSTRY IN CHICAGO, ILL, ON JULY 13 AND 14, 1933
I. DEFINITION OF THE PRINTING INDUSTRY
The Printing Industry, as covered by this Code, shall be under-
stood to include all printing plants and all persons of whatsoever
character manufacturing and/or selling printing to others and shall
also include all private printing plants, all printing plants privately
or publicly endowed or supported, all printing plants operated by
Federal, State, or Municipal authorities, and those that are sub-
sidiaries of other groups, partnerships, corporations, and associa-
tions.
II. EFFECTIVE DATE
The effective date of this Code shall be August 31, 1933. If it shall
not have been approved by the President of the United States on
or before August 21, 1933, the effective date shall be ten days after
the date of approval by the President.
III. PURPOSE
To effectuate the. policy of Title I, of the National Industrial
Recovery Act, during the period of the emergency, by reducing and
relieving unemployment, improving the standards of labor, eliminat-
ing competitive practices destructive of the interests of the public,
employees and employers, relieving the disastrous effects of over-
capacity, and otherwise, rehabilitating the printing industry; and by
increasing the consumption of industrial and agricultural products
by increasing purchasing power and in other respects, the follow-
ing provisions are established as a Code of Fair Competition for the
Printing Industry.
IV. EMPLOYMENT REGULATIONS
The Printing Industry as required by Section 7 (a) of Title I,
of the National Industrial Recovery Act, subscribes to the following
provisions which are conditions of this Code:
"(1) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection;
"(2) That 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 organi-
zation of his own choosing; and
"(3) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President."
It is clearly understood that the foregoing paragraphs shall not
impair in any particular the constitutional rights of the employee
9470-r8 fE








and employer to bargain individually or collectively as may be
mutually satisfactory to them; nor shall it impair the joint right
of employer and employee to operate an open shop.
Nothing in this Code is to prevent the selection, retention, and
advancement of employees on the basis of their individual merit
without regard to their affiliation or nonaffiliation with any labor
organization.
A. Working Hours.-To effectuate the policy of this Code of Fair
Competition, maximum hours of labor shall be uniform for the
whole country. Standard working hours shall be 40 hours per week
for all mechanical employees, including any proprietors, supervisors,
and foremen when doino mechanical work. When necessary, over-
time and extra shifts shall be permitted, provided that no mechanical
employee shall work more than the maximum of 40 hours per week
during the present emergency. It is not the intention of this para-
graph to limit the number of days or shifts a plant may operate.
In case of necessity, arising from an emergency or from the char-
acter of the work, or from the inability to obtain competent labor,
permission may be granted by the Zone Executive Committee, upon
proper showing being made, to exceed the foregoing limitation, pro-
vided such permission shall be granted only upon such conditions
imposed by the Zone Executive Committee as will make certain that
no employee will work more than 1,040 hours in any six months.
B. Minihnum Wages.-The minimum hourly wages for employees
in the Printing Industry shall be 400 per hour for men, and 300
per hour for women except learners and apprentices.
C. Other Wage and Working Conditions.-Other wage and work-
ing conditions and complement of men shall be determined locally
or regionally so as to establish uniform standards in each competitive
district.
D. Employment of Minors.-Employment of minors under 16
years of age in mechanical production is entirely prohibited.

V. TRADE PRACTICE RULES

A. Costs and Accounting.-Every printing house shall maintain
an approved and adequate Standard Cost Finding System and ap-
proved and adequate Standard Accounting Methods, except as pro-
vided by Section VI-Paragraphs A, B, and C. The National
Executive Committee shall promulgate a formula for setting up
such Cost and Accounting Systems.
B. Secret Rebates.-The secret payment or allowance of rebates,
commissions, credits, or unearned discounts, whether in the form of
money or otherwise, or secretly extending to certain purchasers
special services or privileges not extended to all purchasers under
like terms or conditions, constitutes a violation of this Code.
C. Fraudulent and Deceptive Practices.-AMisleading or deceiving
customers with respect to the quantity, quality, grade, or substance
of stock or other elements entering into the completed work,
constitutes a violation of this Code.
D. Defamation of Conpetitors.-The defamation of competitors
by falsely imputing to them dishonorable conduct, inability to per-
form contracts, questionable credit standing, or by other false state-
ments or representations, or by false disparagement of the grade or
quality of their product with the purpose of misleading or deceiving








purchaser or of injuriously affecting the business of such competi-
tors, constitutes a violation of this Code.
E. Breach of Contract.-Any attempt to avoid contractual obli-
gations or maliciously inducing or attempting to induce the breach
of existing contracts between competitors and their customers by
any false or deceptive means whatsoever, or interfering with or ob-
structing the performance of any such contractual duties or services
by any such means, with the purpose of unduly hampering, injuring,
or embarrassing competitors in their business, constitutes a violation
of this Code.
F. Comnn.ercial Bribery.-Directly or indirectly to give or permit
to be given or offer to give money or anything of value to agents,
employees, or representatives of customers or prospective customers
or to agents, employees, or representatives of competitors' customers
or prospective customers, or principals as an inducement to influence
their employees or principals to purchase or contract to purchase
printing or other commodities from the maker of such gift or offer,
or to influence such employees or principals to refrain from dealing
or contracting to deal with competitors, constitutes a violation of
this Code.
G. Competitors' Employees.-Maliciously enticing away the em-
ployees of competitors with the purpose and effect of unduly ham-
pering, injuring, or embarrassing competitors in their business, con-
stitutes a violation of this Code.
H. Pirating of Designs.-Pirating ideas, designs, drawings,
sketches, dummies, or copy of any product that has been submitted
to a prospective customer by a competitor, constitutes a violation
of this Code.
I. False Records.-Wilfully maintaining an inaccurate, improper,
or false method of determining cost, constitutes a violation of this
Code.
J. Firm Bidding.-This industry approves the one bid policy on
competitive bidding, and any practice of fictitious bids for the pur-
pose of deceiving competitors or purchasers, or any attempt through
connivance to have all bids rejected to the end that a more advan-
tageous position may be secured in new bidding, constitutes a viola-
tion of this Code.
K. Specifications and Prices.-When an unsuccessful bidder feels
that the successful bidder has quoted an unfair price, he may demand
that the successful bidder shall show the specifications and prices of
the order to the Zone Committee or its agent, who shall determine
whether any infraction of the Code has been committed. The Zone
Committee or its agent shall have authority to obtain from other
bidders all information they shall have concerning the work and their
negotiations concerning same.
L. General Rules.-The National Executive Committee shall pre-
pare general rules to govern the operation of the industry. Each
district shall prepare general trade rules to govern the operation of
the units therein. All such rules before becoming effective shall be
approved by the National Executive Committee so that they may be
properly coordinated.
VI. STABILIZATION OF MARKET VALUES
To enable the Printing Industry, which is composed of many small
manufacturing units producing printed matter to the specified order







of its customers, to protect itself from ignorance and inadequate cost.
knowledge and unfair competition, and to accomplish the purposes
of the National Recovery Act to maintain fair wages, increase mass
purchasing power, and contribute to the welfare of Government, no
printing shall be sold for less than the fair cost of production deter-
mined upon the principles of a standard cost accounting system rec-
ommended by the National Executive Committee.
(a) Every printer shall be required to maintain a Standard Cost
Accounting System, or determine production cost values and indi-
vidual job costs upon departmental economic hourly cost rates estab-
lished by the Executive Committee of his zone, based upon the cost
records of representative plants kept in conformity with the prin-
ciples of cost accounting recommended by the National Executive
Committee, subject, to the inspection of an authorized representative
of the Zone Executive Committee.
(b) Based upon the records required in Paragraph (a), and/or
such other data and information deemed acceptable, the Executive
Committee of a zone may compile and publish, or indorse and ap-.
prove, minimum cost schedules for such classes of printing as may be.
deemed practical.
(c) The plan of stabilization shall immediately be based upon
costs and administered under such rules as may be established by the
Executive Committee of a zone. The plan of stabilization and cost
schedules in each zone shall be filed with the National Executive Com-
mittee, and periodically be compared with the plans of adjacent zones
through such committee.
(d) Existing written contracts shall be left to the negotiation of a
printer and his customer.
VII. SPECIAL COMPETITION
No state (including political subdivisions thereof), church, educa-
tional, charitable, welfare, penal, or similar type of institution which
is publicly endowed or supported in whole or in part by contributions,
or which is exempt from the payment of any local, state, or Federal
taxes whatsoever, shall sell the product of any printing plant which
it may own, or control by trust, or operate in competition with com-
mercial business enterprises manufacturing printing.
VIII. ASSESSMENTS FOR ADMINISTRATION
All units in the printing industry operating under the provisions
of this Code shall be required to meet their proportionate share of
the expense of the administration of the Code both regionally and
nationally. Failure to promptly meet these obligations shall con-
stitute a violation of this Code.
IX. MEMBERSHIP
The associations operating under the provisions of this Code
shall impose no inequitable restrictions on admission to membership
therein and shall be truly representative of the Printing Industry.
X. MONOPOLIES
No provision in this Code shall be interpreted or applied in such
a manner as to promote monopolies, permit or encourage unfair
competition, eliminate or oppress small enterprises, or to discrimi-
nate against them.





5

XI. PRESIDENTIAL POWERS
The President of the United States may from time to time cancel
or modify any order, approval, license, rule, or regulation issued
with respect to this Code.
The President may impose any conditions he deems necessary for
the protection of consumers, competitors, employees, and others in
furtherance of the public interest.
XII. AMENDMENTS
Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated if it appears
that the public needs are not being served thereby and as changes
in circumstances or experience may indicate. They shall remain in
effect unless and until so modified or eliminated or until the expira-
tion of the Act. It is contemplated that from time to time addi-
tional provisions to this Code or supplementary Codes will be sub-
mitted by the National Executive Committee through the United
Typothete of America for the approval of the President to prevent
unfair competition in price and other unfair and destructive com-
petitive practices and to effectuate the other purposes and policies of
Title I of the National Industrial Recovery Act and which shall not
conflict with the provisions hereof.
If any provision of this Code is declared invalid or unenforceable,
the remaining provisions shall nevertheless continue in full force
and effect the same as if they had been separately presented for
approval and approved by the President.
XIII. ADMINISTRATION
At a conference held in Chicago, Illinois, July 13 and 14, to which
the United Typothetae of America, the National Trade Association
of the general commercial printing industry, had invited representa-
tives of the independent local and regional printing organizations
of the United States, and which was attended by representatives of
approximately seventy five printers associations of all classes, the
United Typothetae of America was and is designated as the instru-
ment of cooperation in effecting the purposes of the Code and in
coordinating the efforts of the various trade associations, of the
industry, and of the Government, in achieving the objectives of the
National Industrial Recovery Act.
A. National Administration.-The conference also divided the
country into seventeen industrial zones, and elected a National Exec-
utive Committee, consisting of 36 members, from these zones for
the purpose of administering the Code nationally. The basis of
representation agreed upon was that each zone should have at least
one representative, and additional representatives on the basis of
each $55,000,000 of printing sales in the year 1929.
The National Executive Committee has the power to rezone the
country, if necessity therefore should be revealed, but the number of
its members shall always be twice the number of zones plus two.
: The National Executive Committee was authorized to appoint
from within its membership or from without, a committee of three
to be known as the National Control Committee, whose power and
authority shall be delegated by the National Executive Committee.




UNIVERSITY OF FLORIDA

3 1262 08515 2105
A Finance and Budget Committee was appointed by the Natio :i::
Executive Committee, and will establish the amount of monriey t"q
be provided by each zone as its proportion of this budget onfi:Ti'.
basis of the annual mechanical pay roll of the zones without ,mnia:.
mum limitations. The same basis of dues assessment for natiab*'iiK
administration is to be applied everywhere. Each zone shall 'doe-:
termine for itself the amount of money required for local adminis--
tration of the Code on the same basis and the local association shall; ';:
be constituted the agent of the zone in collecting and disbursing all 1
money..
B. Local and Regional Administration.-The Local printersl. i s i:
ciations now in existence within each of the seventeen zone,.ji:0:.
any new associations that may be formed, shall execute local aduiri.
tration of the Code for all printers in the locality now embr a4ii:
by them. By agreement of the local associations affected each Aoi4;
may be subdivided territorially or by trade divisions in order t :.!,.
complete the most practical method of administering the code wiit'.
the zone. Such local associations shall establish an organia tip ..'"
basis for the administration of the zone and determine the method
of selection of an executive committee which shall administer th..
affairs of the zone under the National Executive Committee and:t:i
Federal Administrator. "
When a local association has been recognized by the Zone EeI:
tive Committee as the administrative unit for the territory assig..
it, all individual plants within that territory, in relation to questions
governed by the Code, shall be subject to its jurisdiction, and neitht r
the Zone Executive Committee nor the National Executive COQW- .,
mittee shall recognize the appeal of such individual plants unless the
subject of the appeal has been submitted for consideration and action Y
by the local organization.
The autonomy of present printers' association or of new associa-.'!
tions is guaranteed.
XIV. METHOD OF CODE ENFORCEMENT LOCALLY AND REGIONALLY i:'::
Upon the local associations within each zone will fall the .miiast ,
responsibility of carrying out the provisions of the Code andrseeig t:
that they are not violated. Subject to the approval of the Zoine..
Executive Committee, each local association shall draw up such rulei::
and regulations and effect such organization that complaints mar t
be heard, investigations conducted, penalties inflicted, and the le :!j.
procedure, provided in Section 3 (c) of the Act, be invoked, :j
order to avoid burdening the courts, each local association shaU .
deavor to have all printers within its jurisdiction bind therBa" :
to an arbitration agreement whereby they will. agree to abide :by the
decision of a local arbitration board set up within the local associ~-
tion to settle all complaints of or disputes among local printers. 1A(I
certain specified cases appeal from these decisions should be prr
emitted to go to the Zone Executive Committee, and then to the
tional Executive Committee, and even to the Federal Administr
All printers not voluntarily subjecting themselves to such arbf
tion agreements shall be dealt with as provided in the Act.
All local enforcement machinery shall be subject to change 4 A
procedure which may be established by the Federal Adiaj. _
or the National Executive Committee. ,,::i .i
NO
o- ] ^ '.




Full Text

PAGE 1

637-A Registry No. 599-2-07 NATIONAL RECOVERY AD M INISTRATION PROP OSED CODE OF FAIR COMPET I T I ON FOR THE COMMERCIAL PRINTING INDUSTRY AS SUBMITTED ON SEPTEMBER 6, 1933 WE DO OUR PART IA " ___ ._ U.S. The Code for the Commercial Printing Industry in its present form merely reflects the propo s al of the above-mentioned industry, and none of the provisions contained therein are to be regarded as having received the approval of the National Recovery Administration as applying to this industry UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 ' l , For sale by the Superintendent of Documents, Washington, D .C. -------P ric e 5 cent s

PAGE 2

SUBMITTED B,Y UNITED TYPOTHETAE OF AMERICA (II}

PAGE 3

A CODE OF FAIR COMPETITION FOR THE PRINTING INDUSTRY AS ADOPTED BY THE CONFERENCE OF REPRESENTATIVES OF THE PRINTING INDUSTRY IN CHICAGO, ILL., ON JULY 13 AND 14, 1933 I. DEFINITION OF THE PRINTING INDUSTRY The Printing Industry, as covered by this Code, shall be . understood to include all printing plants and all persons of whatsoever character manufacturing and/or selling printing to others and shall also include all private printing plants, all printing plants privately or publicly endowed or supported, all printing plants operated by Federal, State, or Municipal authorities, and thos e that are subsidiaries of other groups, partnerships, corporations, and a ss ocia tions. II. EFFECTIVE DATE The effective date of this Code shall be August 31, 1933. If it shall not have been apprm ed by the President of the United States on or before August 21, 1933, the effective date shall be ten days after the date of approval by the President. III. PURPOSE To effectuate the policy of Title I of the National Industrial Recovery Act, during the period of the emergency, by reducing and relieving unemployment, improving the standards of labor, eliminating competitive practices destructive of the interests of the public, employees and employers, relieving the disastrous effects of overcapacity and otherwise rehabilitating the printing industry; and by increasing the consumption of indu trial and agricultural products by increasing purchasing power and in other respects, the following provisions are established as a Code of Fair Competition for the Printing Industry. IV. EMPLOYMENT REGULATIONS The Printing Industry as required by Section 7 (a) of Title I, of the National Indu trial Recovery Act, subscribes to the following provisions which are conditions of this Code: "(1) That employee shall have the right to organize and bargain collectively through representatives of their own choo ing, and hall be free from the interference, restraint, or coercion of employer 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; "(2) That 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 organization of his own choosing; and '(3) That employers shall comply with the maximum hour of labor, minimum rates of pay, and other conditions of emplovment, approved or prescribed by the President." ., It is clearly understood that the foregoing paragraphs shall not impair in any particular the constitutional rights of the employee 9470-33 (1)

PAGE 4

2 and employer to bargain individually or collectively as may be mutually satisfactor. y to them; nor shall it impair the joint right of employer and employee to operate an open shop. Nothing in this Code is to prevent the selection, retention, and advancement of employees on the basis of their individual merit without regard to their affiliation or nonaffiliation with any labor organization. A. Working H ours.-To effectuate the policy of this Code of Fair Competition, maximum hours of labor shall be uniform for the whole country. Standard working hours shall be 40 hours per week for all mechanical employees, including any proprietors, supervisors, and foremen when doing mechanical work. ,vhen necessary, overtime and extra shifts shall be permitted, provided that no mechanical employee shall work more than the maximum of 40 hours per week during the present emergency. It is not the intention of this paragraph to limit the number of days or shifts a plant may operate. In case of necessity, arising from an emergency or from the char acter of the work, or from the inability to obtain competent labor, permission may be granted by the Zone Executive Committee, upon proper showing being made, to exceed the foregoing limitation, provided such permission shall be ~ranted only upon such conditions imposed by the Zone Executive Committee as will make certain that no employee will work more than 1,040 hours in any six months. B. Minimum W ages.-The minimum hourly wages for employees in the Printing Industry shall be 40 per hour for men, and 30 per hour for women except learners and apprentices. C. Other TVage and Working Conditions.--Other wage and working conditions and complement of men shall be determined locally or regionally so as to establish uniform standards in each competitive district. D. Em,ployment of Minors.-Employment of minors under 16 years of age in mechanical production is entirely prohibited. V. TRADE PRACTICE RULES A. Costs and Accounting.-Every printing house shall maintain an approved and adequate Standard Cost Finding System and approved and adequate Standard Accounting Methods, except as provided by Section VI-Paragraphs A, B, and C. The National Executive Committee shall promulgate a formula for setting up such Cost and Accounting Systems. B. Secret Rebates.-The secret payment or allowance of rebates, commissions, credits, or unearned discounts, whether in the form of money or otherwise, or secretly extending to certain purchasers special services or privileges not extended to all purchasers under like terms or cond itions, constitutes a violation of this Code. C. F raudulent and D eceptive Practices.-:Mi sleading or deceiving customers with respect to the quantity, quality, grade, or substance of stock or other elements entering into the completed work, constitutes a violation of this Code. D. Defarnation of Competitors.-The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, que tionable credit standing, or by other false tatements or repre entations, or by fal e disparaoement of the grade or quality of their product with the purpose of misleading or deceiving

PAGE 5

3 purchaser or of injuriou ly a:ffectin_g the business of such competi tors, constitutes a violation of this Code. E. Breach of Oontraot.-Any attempt to avoid contractual obligations or maliciously inducing or attempting to induce the breach of existing contracts between competitors and their customers by any false or deceptive means whatsoever, or interfering with or obstructing the performance of any such contractual duties or services by any such means, with the purpose of unduly hampering, injuring, or embarrassing competitors in their business, constitutes a violation of this Code. F. 001rwnerdal Bribery.-Directly or indirectly to give or permit to be given or offer to give money or anything of value to agents, employees, or representatives of customers or prospective customers or to agents, employees, or representatives of competitors' customers or prospective customers, or principals as an inducement to influence their employees or principals to purchase or contract to purchase printing or other commodities from the maker of such gift or offer, or to influence such employees or principals to refrain from dealing or contracting to deal with competitors, constitutes a violation of this Code. G. Oomp e tit01s' Employees.-Maliciou ly enticing away the em ployees of competitor with the purpo e and effect of unduly hampering, injuring, or embarrassing competitors in their business, constitutes a violation of this Code. H. Pirating of D esigns.-Pirating ideas, designs, drawing , sketches, dummies, or copy of any product that has been submitted to a pros pective customer by a competitor, con titutes a violation of this Code. I. Fals e R ecords.-Wilfully maintaining an inaccurate, improper, or false method of determining cost, constitutes a violation of this Code. J . Firm, Bidding.-This industry approves the one bid policy on competitive bidding, and any practice of fictitious bids for the pur po e of deceiving competitors or purchas ers, or any attempt throug h connivan c e to have all bids rejected to the end that a more aclv::m tageon s po ition may be secured in new bidding, con titutes a viola tion of this Code. K. Specifi c ation s and Prices.-,vhen an un uc ces ful bidde r feels that the succes ful bid ler has quoted an unfair price , h e may demand that the successful bid ler shall show the specifications and price s of the order to the Zone Committee or its aaent, ,vho shall d etermine whether any infraction of the Code has been committed. The Zon e qommittee. or its agent hall have authority to obtain from othe r bidders all 1nformat10n they hall have concernino the work and their negotiations concerning same. b L. G e n e ral Rules.-The National Executive Committee hall prep~re _general rule to govern the operation of the industry. Each ch. tnc~ shall p~epare general trade rule to govern the operation of the units therein. All such rules before b e cominoeffe c tiv e h all be approved by the National Executive Committee t that they may be properly coordinate L VI. STABILIZATION OF l\fARKET VALUES To enable_ the P~inting In~ustry! which is composed of many mall manufactunng units producing printed matter to the pecified or ler

PAGE 6

4 of its customers, to protect itself from ignorance and inadequate cost knowledge and unfair competition, and to accomplish the purposes of the National Recovery Act to maintain fair wages, increase mass purchasing power, and contribute to the welfare of Government, no printing shall be sold for less than the fair cost of production determined upon the principles of a standard cost accounting system rec ommended by the National Executive Committee. (a) Every printer shall be required to maintain a Standard Cost Accounting System, or determine production cost values and individual job costs upon departmental economic hourly cost rates estab lished by the Executive Committee of hi zone, based upon the cost records of representative plants kept in conformity with the principles of cost accounting recommended by the National Executive Committee, subject to the inspection of an authorized representative of the Zone Executive Committee. (b) Based upon the records required in Paragraph (a), and/or such other data and information deemed acceptable, the Executive Committee of a zone may compile and publish, or indorse and apprc:>ve, minimum cost schedules for such classes of printing as may be deemed practical. ( c) The plan of stabilization shall immediately be based upon costs and administered under such rules as may be established by the Executive Committee of a zone. The plan of stabilization and cost schedules in each zone shall be filed with the National Executive Com mittee, and periodically be compared with the plans of adjacent zones through such committee. ( d) Existing written contracts shall be left to the negotiation of a printer and his customer. VII. SPECIAL COMPETITION No state (including political subdivisions thereof), church, educational, charitable, welfare, penal or similar type of i:r:i.stitution which is publicly endowed or supported in whole or in part by contributions, or which is exempt from the payment of any local, state, or Federal taxes whatsoever, shall sell the product of any printing plant which it may own, or control by trust, or operate in competition with commercial business enterprises manufacturing printing. VIII. ASSESSMENTS FOR ADMINISTRATION All units in the printing industry operating under the provisions of this Code shall be required to meet their proportionate share of the expense of the administration of the Code both regionally and nationally. Failure to promptly meet these obligations hall constitute a violation of this Code. IX. MEMBERSHIP The associations operating under the provisions of this Code shall impose no inequitable restrictions on admission to membership therein and shall be truly representative of the Printing Industry. X. MoNoPoLms No provision in this Code shall be interpreted or applied in such a manner as to promote monopolies, permit or encourage unfair competition, eliminate or oppress small enterpri es, or to discriminate against them.

PAGE 7

5 XI. PRESIDENTIAL POWERS The President of the United States may :from time to time cancel or modify any order, approval, license, rule, or regulation issued with respect to this Code. The President may impose any conditions he deems necessary for the protection of consumers, competitors, employees, and others in furtherance of the public interest. XII. AMENDMENTS Such of the provisions of this Code as are not required to be included therein by the National Industrial Recovery Act may, with the approval of the President, be modified or eliminated if it appears that the public needs are not being served thereby and as changes in circumstances or experience may indicate. They shall remain in ~dfect unless and until so modified or eliminated or until the expiration of the Act. It is contemplated that from time to time additional provisions to this Code or supplementary Codes will be submitted by the National Executive Committee through the United Typothetre of America for the approval of the President to prevent unfair competition in price and other unfair and destructive competitive practices and to effectuate the other purposes and policies of Title I of the National Industrial Recovery Act and which shall not conflict with the provisions hereof. If any provision of this Code is declared invalid or unenforceable, the remaining provisions shall nevertheless continue in full force and effect the same as if they had been separately presented for approval and approved by the President. XIII. Ao:;_,nNISTRATION At a conference held in Chicago, Illinois, July 13 and 14, to which the United Typothetae of America, the National Trade Association of the general commercial printing industry, had invited representatives of the independent local and regional printing organizations of the United States, and whi-ch was attended by representatives of approximately seventy five printers associations of all classes, the United Typothetae of America was and is designated as the instrument of cooperation in effecting the purposes of the Code and in coordinating the efforts of the various trade associations, of the industry, and of the Government, in achieving the objectives of the National Industrial Recovery Act. A. National Ad1ninist1ation.-The conference also divided the country into seventeen industrial zones, and elected a National Exec• utive Committee, consisting of 36 members, from these zones for the purpose of administering the Code nationally. The basis of representation agreed upon was that each zone should have at least one representative, and additional representatives on the basis of each $55,000,000 o:f printing sales in the year 1929. The National Executive Committee has the power to rezone thr country if necessity therefor should be revealed, but the number of its members shall always be twice the number of zones plus two. The National Executive Committee was authorized to appoint from within its membership or from without, a committee of three to be known as the National Control Committee, whose power and authority shall be delegated by the National Executive Committee.

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6 1111111111~1m~mllillll11m II~~ 1ilill1i 111111111 3 1262 08515 2105 A Finance and Budget Committee was appointed by the National Executive Committee, and will establish the amount of money to be provided by each zone as its proportion of this budget on the basis of the annual mechanical pay roll of the zones without maximum limitations. The same basis of dues assessment for national administration is to be applied everywhere. Each zone shall de f.ermine for itself the amount of money required for local administration of the Code on the same basis and the local association shall be constituted the agent of the zone in collecting and disbursing all money. B. Local and Regional Adrninistration.-The Local printers asso ciations now in existence within each of the seventeen zones, and any new associations that may be formed, shall execute local administration of the Code for all printers in the locality now embraced by them. By agreement of the local associations affected each zone may be subdivided territorially or by trade divisions in order to complete the most practical method of administering the code within the zone. Such local associations shall establish an organization basis for the administration of the zone and determine the method of selection of an executive committee which shall administer the affairs of the zone under the National Executive Committee and the Federal Administrator. When a local association has been recognized by the Zone Execu tive Committee as the administrative unit for the territory assigned it, all individual plants within that territory, in relation to questions governed by the Code, shall be subject to its jurisdiction, and neither the Zone Executive Committee nor the National Executive Committee shall recognize the appeal of such individual plants unless the subject of the appeal has been submitted for consideration and action by the local organization. The autonomy of present printers' association or of new associa tions is guaranteed. XIV. J\1ETHOD OF CoDE ENFORCEMENT LocALLY AND REGIONALLY Upon the local associations within each zone will fall the main responsibility of carrying out the provisions of the Code and seeing that they are not violated. Subject to the approval of the Zone Executive Committee, each local association shall draw up such rules and regulations and effect such organization that complaints may be heard, investigations conducted, penalties inflicted, and the legal procedure, provided in Section 3 ( c) of the Act, be invoked. In order to avoid burdening the courts, each local association shall en deavor to have all printers within its jurisdiction bind themselves to an arbitration agreement whereby they will agree to abide by the decision of a local arbitration board set up within the local association to settle all complaints of or disputes among local printers. In certain specified cases appeal f~om these. decisions should be permitted to go to the Zone Executive Committee, and then to the National Executive Committee, and even to the Federal Administrator. All printers not voluntarily s1;1bjecting tl:iems~lves to such arbitration agreements shall be dealt with as provided 1n the Act. All local enforcement machinery shall be subject to change due to procedure which may be established by the Federal Administrator or the National Executive Committee. 0