Citation
Code of fair competition for the rubber tire manufacturing industry

Material Information

Title:
Code of fair competition for the rubber tire manufacturing industry as approved on December 21, 1933 by President Roosevelt
Portion of title:
Rubber tire manufacturing industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington
Publisher:
U.S. G.P.O.
Publication Date:
Language:
English
Physical Description:
1 p., 335-353 p. : ; 23 cm.

Subjects

Subjects / Keywords:
Tire industry -- 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:
Approved Code no. 174.
General Note:
Registry no. 807-1-06.

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:
004942766 ( ALEPH )
31966794 ( OCLC )

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Approved Code No. 174


Registry No. 807--1-06


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



























This publication is for sale by the Superintendent of Documents, Govern-
ment Printing Office, W~ashington, D.O., and by district ofilees of the Bureau
of Foreign and Domestie Commerce.
DISTRICT OFFICES OF THE DE#ARTHENT OF COMMERCE

Atlanta, Ga.: 504 Post Oficie Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass. : 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamnber of Commerce Building.
Chicago, Ill.: Suite 1700, 201 Northh Wells Street.
Clevelandl, Ohio: Chamlber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, M\ich.: 2213 First National Bank Building.
Houston, Tex.: Chamlber of Commerce Building.
Indianapolis, Ind.: Chanmber of Commrci~e Building.
Jacksonville, Fla.: Cha~mber of Conunorce Building.
Kansas City, Mo.: 1028i Baltimore Avenuue.
Los Anlgeles. Calif.: 1163 South BrIoadway.
Louisv~ille, K~y.: 4108 Federal Building.
M~emlphis, Tennl.: 229 Federal Building.
Mlinnea~polis. M~inni.: 213 Federal Building.
N'ew Orleans, La.: Hooml 225-A, Customhlouse.
New\ Ylork, N.Yk. : 7341 CustOmhJouse.
Norfplk. Van.: 400 East Plume Street.
Philadelphlin. Pa.: 0333 Commlercial Trust Bluildinug.
PittsburgJh. Pa.: Chamber of Commerce Building.
Portlandt, Oreg.: 215 New~ Post Office Building.
St. Louis, M~o.: 500 O~ive Street.
San Franicisco, Callif.: 310 Customhiouse.
Souttle, W\ashi.: 800 Federal D~uildingr.














Approved Code No. 174


CODE OF FAIR COMPETITION
FOR THE

RCUIBBER TIRE MXAN~UFACTUJRING IND~USTRYk

As Approved on December 21, 1933
BY

PRESIDENT ROOSEVELT





Executive Order

An application havinga been duly made, pursuant to and: inl full
compliance with the provisions of T~itle I of thle Niuational Indlustr~ial
Recovery Act, approved Junie 16, 193:3. for myS approval of a C~ode
of Fair Competition for the Rubber Tire M~anufactur~ing Industry,
and hearings having been heldl thiereon and the Admninistrator having
rendered his report containing an analysis of the saidl Code o:f Fair
Competition together with his recommnendlations and findtings with
respect therePto andr thep Adminij~ strtionl havingr foundc th~at the said-
Code of Fair Competition complies in all respects with thle p~ertinent
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 mlet:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant. to the authorityl vested in mie by Title I of
the Nationial Industr~ial Recoverl Act., approved June 16l, 1(,33, and
otherwise, do adopt and approve the report, r~ecommllendatioion and
findings of the Adtministrator and do order that the said Code
of Fair Competition be andi it is her~eby approved, upon condition
that, without. in any way limiting thie effect of Section 10 (b) of
Title I of the National Indlustrial Recovery Act, or of Section 1 of
Article IX of said Code, I specifically retain the right to cancel
this approval of said Code, or to modify saidl Codle in such miannier
as may be required to prevent any unfair trade practices within the
Rubber Tire Mfanufacturingr Industry whiich mnay become evidetnt in
any investigations by the Fedleral Tra~de Comimissiion or inl thle ap-
plication of said Code; and


287i02*---296-418---33


(335)







336

Th~e Adcministrato~r is h~ereby directed to conduct such investi-
gations as may~ be~ necessary) to advise mne fully within ninety days
concer~ningi the ex istence oir evelopmient of any un fa ir t rade practices
within saidl Industry! utilizing the aid of thle Fed~eral Trade Comn-
mnission in the exp~editious dletermninationn of any complaints con-
cerning su~r ch unfafir' trade practices.
FRANKLIN D. ROOSjEVE~LT.
Appr~oval recommended :
HUGcII S. JoTNSON,
Ad m-n inist r~atfor.
THE T~HITE HousE,
Dcem~iber R1, 1933.














THE PRESIDENT, DECEMBER 20, 1933.
The Il'hite Hmmse.
SmR: The proposed C~ode of Fair Competition for t~he Rtubber Tire
M~anufacturingf Industry was sulbmlitted to thle AdmlliniStrator on
July 31, 1933. It was reconsidered by the Industry and a revised
code was submitted onl October 3, 1933, by the Rubber Mannufucturers
Association,? representing ap~proximatl 85cr of thre members of the
Indlustry and volume of production. The Hearing was conducted in
Wa~'shington on October 20, 1933. The Code was revised during the
recess of this Heearing andl is submitted in its present form for ap-
proval. Every person who requested an appearance was properly
heard in accordance with statut~ory and regiulatory r~equir~ements.
HOURS O:F WORKi

Under this Code, factory employees are limiited to 36 hours per,
week averagedl over a calendar yetar. with a restriction of 8 h~oulr per
day and 42 hours in any one w~eek. Overtimie in excess of 30 hours
per week shall be paid at thle rate of timle andi one third~.
Maintenance crews, engineers, firemen, shipping crews, and tiret
testers are limiited to 40t ho-urs per' weeki and 8 hours per day, ex~ept
in cases of emergency. Ove.rtimet in excess of 410 hours per w~eek or
8 hours per day sh~all bie panid for at th~e rate of time? and o~ne third.
Watchmlen are limited to 84 hours in any twro-week; period with one
day off in seven.
Accounting, clerical, office, servie, sanles, or other emnployees (except
oultsider~ salesmeln) receiving $85.00r per weeke or less, are limited to an
avlerage of 410 hours a week over the p~erio-d of one month, but in no
case shl~~l th~er work more than 48S hours inl any one wcseek. Salaried
employees receiving more than $35.00 per' wSee' and outside salesmen
are not restricted to anyl malximum~ hours.

W\AG;ES

Th~is Code provides fo~r a n miinmum wnge of $0.410 pier hour unless
the rate for the samle class of wiorke on Julyr 15, 1929, waZs less than
$;0.410, in whiich~ ense the ratte per hour shall not be less than the rate
paidl on Jully 15, 1929. In no event shiall the rate per hour be less
thian $0.35. Apprentices, during n. six weeks` apprenticeship, m~ay be
pa"id niot less than 80Sr of these miinimum rates. Such apprentices
shall not constitute more than five percent of the total employees mn
anly one establishment.
Minimums for salaried em~ployees range from $12.00 per week in
towns of less than 2,500 population to $15.00 per w-eek in cities of
500,000. Clerical apprentices, office boys andl girls mlay be paidl not
less than 80%b of these mninimumins but. may not constitute more th~an
(337i)





338

five percent of the total office employees in any one esta~blishment.
Provision is made for sup~erannuated and disabled employees; for
equalization of r~ates of pay for men and w-omen performing the
samie work; for equitable adjustmlents of pay schedules of factory
e~mplo yetes above the minimum andi for the posting of the labor pro-
visions of the Code.

OiTHER PROVISIONS OF THE CODE

The Code provides that the Code Authority~ shall undertake a
study of costs inl the Industr~y and submit recomimendations to the
Adm-inistrator w~ithinl sixty7 days from the approval of the Code, for
the incorporation of an adequate cost, recovery provision in the Code.
The Industry believes that t~he problems presented by the existence
of widely varying selling programs and the use of many channels of
distribution mnake such an inquiry necessary. Final adoption of any
provisions regarding selling below cost is specifically subject to the
approval of the Administrator.
The Industry has adopted twenlty-seven trade prnetice provisions
in this Code, designed to eliminate various forms of unfair com-
petition. The Code further provides that the Clode Authority shall
make recommendations to the Administrattor at a later date, in
regard to t~he adoption of a standard warranty, the status of time or
inilenge contracts, the simplification of the number of lines of
tires, the establishment, of a committee to coordinate this Code wFith
that of the Retail Rubber Tire and Battery Trade and the adoption
of an openi price system for the Industry.

ECONOMICI( EFFECT OF CODE

Thle followingf tabulation shlows the effect of the depression on
the Industry :

1929 1932 Decrease

Sales.~.........~~....~........~... ...~......~...~~.....~.............8675, 000. 000 $300, Oi.00000
Production (ca~sings ..~. .....................~................... ~. 69. 000, 000 40, 000, 000
WVage esrners.......~.. ...~~.~...................~................. ;J1,700 35. 800 4
Numberrof companies..~....~...................... ............... 62 35 4


The Industry has already made the wngnes and hours provisions of
this Code effective in a large degree, as is indicated by the following
table :


1Production1 Employ- Average Av~erage
casmugs zuent, wage hours hourly
earners per week earnings

blay.....~~_...~. ...............~. ~ _........~......... ... 5, 200, 000 38, &I5 38 80.585
June.......-.~._....~.....................__ ...~~....... .. ,0,0 44,148S 42 .570
July..~....._.. ._.......~....~..........~._~..~.~.~......... 5, 700, 000 I 49, 680 38 .620
Au eust.............~~.. ............... ............ 5,000, 000 52 962 32 .054
Septemnber......... ~................... .._ .. ..... ._. 4, 000, 000 52. 850 30 .681
Ocotoer......~~~~........................_ .~..~~._........ 3, 400,00 L8O0,400 31 .088







339


October production w~as only 65% of the prod-uction in Miay.
Nevertheless employment increased over .30C. andl average~ hourly
earnings increased approximately 179~. Avecrage~ hours per week
have declined due to seasional decline in production. w-hich invariably
occurs during the months of October, Novembler, anld December.
No other Inidustry can derive greater benefits fromii the Act. This
Clode in no sense emnbodlies a complete solution of all the problems
of t~he Industry~. It does represent a real begpinning. The reclama-
tion of this Industry fr~om the dlestructive competition which exists
must be a continuing task over a longa per~iodl of t.imie.
FIN DINGS
The Administrator' finds that:
1. This Cod~e comnpies in all respects with the pertinent phra~ses
of Title I of t~he Act, including but without limitation Subsection
(a) of Section 7i, and Subsection (b) of Section 10 thereof.
2. The Rubber manufacturers' Association, Incorporated, is truly
represrenta-tivet of thie Rubber Tir~e Alanlufacturingr Inldustry and its
bylawrs contain no inequitable restrictionss on mnemblership.
3. The Code is not designed to p~romnote monopolies or to eliminate
or oppress small enlterprises aic nd ill not operate to discrimlinat~e
against them. The Code w~ill teind to effectuate the policy of Title I
of the National Iindustrial Recovery Act.
It is recommllenledl, therefore? that this Code be approved.
Respect ful ly,
HUGH S. JOHNSON,
Administrator.













CODE OF FAIR COMPETITION
FOR THE
RUBBER TIRE MANUFACTURING INDUSTRY

To effect the policies of Title I of the National Industrial Recovery
Act, this Code is submitted as a Code of Fair Competition for the
Rubiber Tire Mannufacturing Industry, and upon approval by the !
President, its provisions shall be the standards of fair competition for
this Industry, and shall be binding upon every mlember thereof.
ARTICLE I

A. DEFINITIONS

SECTION -1. The termi Rubber Tire Ma~nufacturing Industry or
"Indstry", as used herein, shall mean the manufacture for sale in
the continental UCnited States (including Alaska) and sale at whole-
sale by manufacturers or subsidiaries or affiliates of thle same of solid
or pneIumatIic. rLIubbe tires ndl/lor pneumatic rubber tubes, together
with such related branches or divisions as may from time to time be
included under the provisionss of thiis Code by the President, after
such notice and hearing as he may' prescribe.
Sec. 2. The term "Lmember of th~e Industry "? or member as used
herein includes, but without limitation, any individual, partnership,
association, corporation, or other formn of enterprise engaged in the
mnanulfactulre or both manufacture and sale at wholesale of any prod-
ucts of the Industry~, or any subsidiary ry or affiliate of t he same engaged
in the sale at wholesale of any p~rodlucts of t.he Indlustry.
SEc. 3. The term L"memberl of the Code as used hereinl, includes
any mlember of the Ind'ustry who shall expressly signify assent to
this Code.
SEc. 4. The term "C emnployee as used herecin, includes any anid all
Persons~ engaged in the Industry, how-ever compensated, except a ?
members of the Ind ustry.
S~EC. 5i. The termn "Association as usedl herein, shall mean the il
Rubbe~r 1Manufacturers Association, Inlcor~porat.ed, 0, corporation or- I
ganizedl under the laws of the State of Connecticut and having its
pr'incipal offce at 950 W~est 57th Sftreet, New Y'ork, New Y'ork.
SEc. 6. The terlm '"dealer "' as used' herein, shall mnean anyone,~
wFhet'her or not a member has a1 financial interest thlerein, who p~ur-
chases~ a member's brand of tires~ and.'or tub~es, from a. member or
jobbler, u~ndrl contract for sale. eithler absolute, conditional, or on
consigqnmntnt and wvho in tur~n resells to other than employ~ees or
affiliatedi comrnpanies, at least 759; of tbhe tires or tubes so purchased.
Comnpany rtacil stores, whiether~ wholly or par~tly owned, shall be
classifiedl as dealers.







~341


SEC. 7. Thie term jobber as riced hierein, shaqll mean anyone who
sells at least 7i5%i~ of his total volumlle of tire., and/or tubes through
or to dealers for resale to cons~umlers~, wvhether or niot such dealers are
owned or affiliated with or controlled b~y iruch jo-bber, andl who per-
forms the services of a job~ber such~ as1; maintainingr a stock, selling,a
shipping, billing, and carrying accounts receivauble.
SEc. 8. The terml "' warehouse dlealer as used hetreini, shall mIiean
a dealer whlo acts as a shipping agenit for a m~ember of the Industry
with sales, credits, and collectio-ns handlec d by that mnember.
SEC. 9. The termn (110h PIPOSirent" as used liereii, shall mean the
President of the Unitedl States.
SEC. 10. The termi "'the Adlminis'trator as used hetrein, shall mean
the Administrator appointed under Title I of thle Nationa~l industrial
Recovery Act.
SEC. 11. The ter~m the Alct ".? as usedl her~einl, shall mean thne N~a-
tional Industrial Recovery Act.
SEC. 12. Population for th~e p~urosesi of this Code shall be dleter-
mzined by reference to the latest Fedleral Censius.
ARTICLE II
A. ADMINISITRATION AND ORGANIZATION

SECTION 1. To further effectulate the policies of the Act, a Tire
Code Aut~hority (herein refiI1erre to as the C'ode Authority) is hereby
set up for the administration of thiis Code..
SEC. 2. The COde Authority shall consist of eight persons who
shall be selected by the Induistry byr a fair mnethodl of selection, ac-
cording to such rules as it. may~~ determine. The Administratorl in
his discretion, may appoint niot mlor'e thlan thlree additional membilers,
without vote, to represent thle Adlministra~tor, without~ expense to the
Industry or Ass~ociationl. No two of the members of the Code Au-
thorit~y or their alter~nates shall b~e nfliliated with any single mnemiber
of the Indlustry.
(a) In order that th~e Code Authority shall at all times be truly
r~epresentative of the Industry andl in other respec~ts comply with the
provisions of the Act, thec Admninistrator myn~ provided sulch hearing s
as he may deemi proper; an3d if there after h~e shall find that the Code
Authority is not truly representative or does nlot in ot'her respects
comply with the provisions of th~e Ac~t. he many require modification
in the methodl of selection of the Code Authority.
(b) The President of the Association and its G~eneral Mlanager
shall act as ex-officlio members of the C'ode Authority with no voting
power. The General M~anager of the Association sliall act as Chair-
man of the Code Author~ity.
(c) One alternate shall be selected for each member of thie Codle
Authority, with full power to vote in the absence of his principal.
Provided that no twro alter~nates shl~nl be affiliatedl with any single
member of the Industry.
(d) Should any ma'tter come before thle Code Author~it y which
specifically inv-olv-es acts, conduct, or the interest of a miember of thle
Industry with which any member of the Code Authority is asso-
cinted or emplloyed. such miember of the Code Au~lthor)ity' shlln be
'.S;0'1"-29r6-48--533---







342 :

disqualified to act in such mat~ter. The designated alternate shall -.
act in place of the dlisqualified member of t~he Code Authlority.
(e) Mfeetings shall be called by the Chairmian either at. his dis-
cretionl, or on the suggestion of any three members of the Code
Authiority. The Code Authority shall determine its own rules of :
procedure.
SEC. 3. The Code Author~ity shall have the duties and powers
herein provided subject to the rightt of thie Admlinistrator, on review,
to disapprove any action taken by the Code Authority.
(a) Thle C~ode Authorityr shall make investigations as to the
functioning andt observance of any provisions of this Code at its
own instance, or onl complaint by any person aff'ectedl, and report its
findings and recommendations to t~he Administrator.
(b) The Code AuthorityF sha71 Sllstdy the trade practice pro-
visions incorporated in this Code, and the operation thereof and
shall ma~ke such recommllendations to the Adminsltr rtorP from time
toi time which it considers desirable, for mlodification or addition
thereto, prov9ided such recommendations shanll hanve been approved.
by members of the C'ode as provided in Articlc X. UCponi approval
by the A~dminist-rator, after such hearing as hie mayn prescribe, such
recommnendastion~s shall becomec a par~t of th~is Codie and have full
force and effect as pr1ovisions h~ereof.
(c) The Code Authlority mnay at its djiscretion pries-ent recom-
mendtations to thle Admninistrator, based on conditions in the In-
dustry, as they miay dev\elop> froms timec to time, pr1ovid~edl such recom-
miendaltions shall hiave been approved by membilers of the Code
as pIrovided in Article X. Such recommllendations shanll be de-signed
to facilitate thle operations of thle p~rovisionis of this Coude and the
policy of th Act.
(df The Code Authority may3 retquire reports fromn members of
the Industry in respect to hours of labor, wages, conditions of em-
ploymient, number of employees, plaint capacity, production, orders,
shipments, invenitories, and any other matters pertinent to this Code
ini order that thet President may tw kept informed writh respect to
the observannce and per~formalnce of the Code.
(e) Th')e Code Atuthority may, at its discrtion, set up any or all
of the follow-ing comnmittees or any other committees, if their
existence will further effectuate the policies of the Act, viz:
Accounting Industrial Relations
Comints~it and Grievances Statistical
Fiair Practices
(f) The Codle Aulthority may set up a committee on imports whose
duty it shlall be to investigate and inform the President as to the
importation of competitive articles into t~he UI~nited Sttats in sub-
stantial quantities or increasing ratio to domestic production, on
such. term or under such conditions as to render ineffective or to
seriously endang~er the maintenance of thiis C7ode us provided in
Section 3 (e) of the Act. The Committee shall make such reports
of its findings to the Code Authority who shall in~formi the President
through thze proper channels.
SEC. 4. The Association is hereby designated as the agency for
the collection of statistics, dlata, reports, and information under the I







343


Code, provided that no inlequitable res~tr~ictions uploni membr~, rship
therein shall at any time be imp~osed.
(a) Every member of the Indlustryg shall~ lu,1:.pare' ;1nd file w\ith
the Association at such times andl in such mainner~i andt foirmi as thie
Code A-uthority may r~equirie, statistics of plant capa~c~ity.. prloduc-
tion, sales, or~der~s received, inventorieis, w~nge ra~tes, hours of w-~o~rk,
and such other dafta or inlformatioi n u~ t he Athi nilst ratorl mayn?, filront
time to timez, requir~e. Su~lch r'epor~ts anldl or records mayn! be eitherr

(b) In addition to informa~tioni required~ to~ bel submitted t6 the
Cede Aulthority, eve~ry members of the Ind~ustry hall unip.h directly
to gov.eirnmntal agenecios sulch statihticral in~forma~tio n as thle' Admlin-
i~strautorl may~ dlteem necessa~ry for the pjurp~oses recited inl Sectioni :3 (a)
of thec Act.
(C) Exceptr as: otherwise pr1ovidedc in th~e Act, all1 su~ch statistics,
dlata. and information filedi in necordcanice with~ this Article~ shall b~e
conifidcntial, andlc the replorts andi rrcordcs fr~om anyindviua m
ber of the Inidustryv siall only be r~evin led to the AdmliniSt entOr' or
other governmlentalj authority, to thle extent niecessary forl thie admin-
istration and eniforcemnent of; thr Iprovisions of this Codle.
(d)j If the Associatio n shall hav\e r~easonl to believe that aIny re-
por'ts ,submllittedl by a membe~~cr are~ ina~c~curatee su~lch rep~or'ts ma! b~e
verified by a disinterecstedl anil imprnntial agvenlcy designated~ byI thle
Code Authority, and1 for. suchI pnrp~o'e such agncy sh~arll have
access to anyi andl all r~elevanti booksil~ andi r~ecordcs of such member.

of the Industry! to file orI furnlishl informaltio~n requir~ed under~i this
Article shall constitute ani unfair trad(.e p~ractice andic a v'iolation of
this Code.
S~EC. 5'. Each member~%~ of the C'odle shaill be; enititledi to pariticipate in
the activities of the Alssociation in ~olnnectio~lln ith~ the adminiiistration
of the Code. Any~ other m~emb~er of thle Indus~itl ry ay become en-
titled to participate by becoming a mrem~ber of the C'ode. Each
members of the Code shall bear an eqluitnble share of th~e cost of
maintePnance of the Conde Authori;ty,~ ether byi becoming a miemnber of
the Alssocriation or by~ playing to the Alssociaioni a7 sum1 equal to its
reasonable shar~e of thie expenses incurredt in the adminlistra7ti on1 of
this Ciode, as dletermnined by the Code Auithor~ity, subject to review
by the Adminlistrator.
ARTICLE III

A. INDUSiTRIAL-RELAT2ION'S PIL'ICIES

SECTION 1. In comnpliance with Section 7 (0) of thie Act. it is
provided :
(a) That emlployvees shall havre the r~ight to organilize and! barg~ai n
collectivelv t~hrough representatives of their own1 choosing, andt shall
be free fromn the interference? restr~ainlt, or coercionl of emnployers of
labor or their Igrents in t~he designationl of such recpres~entati ves. i or in
self-organization or in other concerted activities for the p~urpose of
collective bargaining or other muitual aid or protection.
(b) That nio employee and no onie seeking employment shall be
required as a condition of emnploymient to join anyi company union







344


or to refrain from1! joining, organizing, or assisting a labor organi-
zation of his own1 choosing; and~
(c) That emplloyer~s shall comply with the mnaximum hours of
labor, minimum rates of p~ay, andl other conditions of employment
approved or prcscribedl by~ thle Pr~esident.
SEC. 2. NO person 011000 li6 yearS of age shall be employed in the
Industry. No personl under 18 years of age shall be employed on
any m~llni ng or calneriPng operations or any other operations where
there mayr be recognizedl hazards connected with the job~ or operation.
SEC. 3. NO p~rovisiGH Il tlils COde Shall supersede any State or
Federal law whiich imposes mnore stringent requirements on em-
play'ers as to age of employees, w~ages, hours of work, or as to safety,
health, anitary, or general working conditions, or insurance, or fire
protections, than are im~posed by this C'ode.
ARTICLE IV

A. HOTR.S

SECTION 1. Except as prov~idedl in Section 9, no factory employee
shall work or be perm1iftted to wVork, inl rSexes of anl average of 36
hours in anyi onei week, av~flerage over a calendar yerar, nor more
than 8 hours in any 241-hour period. Provided- that. no such emn-
ployee shall works or be p~ermnittedl to w~ork monre than 42 hours in
aIny one week. For all hours worked in excess of 36 hlour~s per week,
overtimief shall be panid at the rante of time andl o-ne third. It is t~he
intent. thlat the hours worked by employees ulnder this Section shall
be consecutive, except that reasonable provision mayr be maxde for
eatingF period.
SEC. e. $18111(0118110 crews, eigilleerS, firemen, Shilpping~ cr~ews, and
tire testers shall not wol~rk or be permitted to w~ork in excess of 400
hours1' in any one w~eeki nor more than 8 hours in any 24-hlour period.
Provided, iow~eer, thlat thlis limlitationl of hours shall not apply in
cases of emnergency, b~ut in suich cases all hours worked inl excess of
410 hours in any one w-eek or 8 hours in any 24-hour period shall be
paRid for at the rate of timie andl one third.
(a) Wartchmec n shall not, wo~rk or b~e prm~nitted to w-ork more than
84l hou~rs in any t w~o wreeks' period, providedl that such employees
shall have onie dayv off' inl seven.
SEC'. :3. II(COllnlillF clermacl, offee, service, sales, or other em-
ployees (exscepting~ outside salesmnen) shall not w~ork;, or be permitted
to w~orkl, in excess of an average of 40 hours a. week~ over the period
of a monclth, nor mor~e thann 4~ hours in any' one week.
SEc. 41. Thle nlu~ixllimu hours1' fixed in ~Sections 1, 2, andl 3 shall
not. apply to salar~ied emnployees inl any mianageriall executive, cleri-
cal, supcrvisory~, or techlnical enpacity receiving more than $35.00
pier wreek, nor to any' outside salesm~en.
Soc. 5~. No emlploy'ee shall worilk, or be. permitted to wvork, for a
totall number3CL of hou~lrs in exCctSs of the number of hlours prescribed
for achcl w~teek and~ day, whether employed byr onie or miore empgloyers;
provided, howevercl that if any empilloyee works for mlore than one
empnlloyerr for a total lrnumber of hours in excess of such maximumi







345


without the knowledge or connivance of any one of his employers,
such employer shall not be deemed to have ~violalted- this section.
SEC. 6. TNO employee! shall be classified in anly of the foregoing
exempted classes unless he performs functions idlentienl with those
performed byv employees thus classifiedl onl June 16, 19:33.
B. WAGZES

SECTION 1. Except as hlerein below provided, no employee shall be
paid in any pay8 periodl less thalnl at thle rate of forty cents ($0.40)
per hour. Pr~ovided, however, that where the h~ourly rrate for the
same or similar class of w-orki on July 15, ~1999, was less than forty
cents ($0.40) per hour. no employee shall be paid at le~ss than the
rate per hour paid on July 15, 199"9, but in no event shall the rate
per hour be less than $0.35.
(a) Apprentice~s, during a six w~eeks' apprenticeship may be paid
not less than eighty~ percent of thle above specified minimum rates.
Such apprentices shall be understood as persons having no previous
experience or emiploymient oni similar w~ork in the Industry and shall
not constitute more than five (5) per cent of the total employees
covered by this Section, in the employ of any memberi.
SEa. 2. No salaried employee (except outside salesmlen, office girls
and boys, anid clerical apprentices) shall be paid less than at the
rate of :
$15.00 pe~r w\eek .......---- Cities over 500,000 population or inl thne imme-
diate trade area of such a city.
$141.50? per w~eek __ ..____ Cities between 250,00b0 and 500),000 population
or in the immediate trade area of such a city.
$;14.00 per w~eeki_______ Cities between 2,500 and under 2.10,00(0 popula-
tion or in the immediate trade area of such
a city.
$12.00 per week.._______ Tlowns of less than 2,500 population.

(a) s C clerical apprentices during a six months' apprenticeship, and
offie bos. and irls miay b~e padnot less than 80% of the above
minmum. Schexceptedd office employees shall not exsceed 5%r of
the total nulmber of employees covered byr Section 2, in the employ
of any member.
SEc~. 3. The provisions in Article IV-B shall not apply to any
employee par~tially incapacitated through age, injury, or disease;
provided, however, tha~t such emnployree shall receive not less than
$0.25 per hour. Each mnemberl of the Industry shall report to the
A ssoc i at ion monthly t~he number and n amI~es of employees so
classified.
SEC. 4. Female employees performing the same work as male
employees in manufacturing operations s~hacll receive the same rates
of pay as manle employees.
SEC. 5. Article IV-B establishes a miinimum rate of p~ay which
shall apply, whether an employee is actually compensated on a time
rate, p'iecework, or other basis.
SEc. 6. Equitable adjustmnents in all pay schedules of factory
employees above the minimum shall be made within thirty (30) days
after the approval of this Code by any members who have not hlere-







346

tofore made such adljustments, and the first monthly reports of
wagres Irequlire to be'C Blejd under this Code shall contain full infor-
maRtion as to nil wange increases made since Mlay 1, 1933.
C. POSTING OF LAHIOR PROV'ISIONS

SECTION 1. Every miemnber of the Industry shall post in conspicu-
ous places in all departments of his establishment or establishments
copies of Articles III and IV' of this Code.
ARTICLE V

A. COST ANDU MARKET STABI3LIZATION

SECTION 1. The Code Author~ity shall immedrciately upon approval
of this Codle proceedl to a study~ of a market stabilizationi plan based
on cost control.
(a)l A standalnrd uiniformn system of accouning,~c for' the guidance of
each mnember of thle Industry, shall be developedl undrli thie direction
of the Code Aulthority.
(b) The Code Aulthoriity shall designate, writh the approval of the
Admlinistrator. a disiniter~ested and imipar~tial agency, to procure and
compile the data required to complete, the study andl to act as the
agency through which such compiled data shall be tr~ansmlitted to the
C'ode Authority, in order that all cost data o~f m~emlbers of the Indus-
tryv shall be ke~pt confidential. Each member of the Industry shall
furnish- suchh agency withl such reports as mnay be dlesigniated by the
C'ode Authority.
(c) Th~e Codec Authority shall confer with the Administrator~ from
timie to timne inl thle course of formulat.ingr its recommlnendat~ions as to
the plan for suchi market stabilization hierein above proposed. The
Code Au~thlority shall muake an initial report concerning progress in
the formiulationi of such a p~lan withlin thirty (30) days after the ap-
provanl of this C'ode. Final recoimmendation shall be submitted to
the Admninistra~tor within sixty (60) dlays from date of approval of
this Code.
SEC. 2. After such marlket stabilization planl based on cost control
shall hiave receivecd approval by the Industiry and by the Admiinistra-
tor, such plan shall become a part of this Code. Violation of anly
provisioni of such plani shall be considered an unfair trade practice
and sub~jectt to the penalties of the Act.
AIRTICLE VI i
A. TR~ADE PRACTICES

fECTION 1. No member shall use advertisinlg (whether printed,
radio, display, or of any other nature) or other representation which
is inaccurate in any? material particular or which refers inaccurately
to competitors or their commodities, prices, values, credit terms,
policies, or services. No member shall, in any way, misrepresent any
commnodtity includingg its use, trade mnark, grade, quality, quantity,
origin, size, srpecifications) or his credit terms? values, policies, serv--
ices, or thre nature or' formi of the business conducted.







347

SEC. 2. NO mlembetr shall use advertising or selling methods or
credit terms which tend to deceive or misleand a cus~toier or p~rospec-
tive customer.
SEC. 3. 1NO m~em-~ber s~iml publish OF cif~cHIrTIZE un ustif ed Or un-
wrarrantedl threats of legal pr1oceedlings which tend to or have the
effect of har~assinga comp~etitors or intimiidating their. cus~tomers.
SEC. -l. NO member hall s-ecr~etlyv offer or make any payment or
allowannce of a rebate. refund, commission, credlit, uiineanedl d~iscount
or excess allowance, whleth~er in thle form of money o-r otherwise, for
the purpose of influencing a sale; nior shall a miemiber secretly extend
to any customer any special eervice or priivilegie not extend~ed~ to all
customers of the samie class.
SEC. 5j. No m:emberc~l shlall grivei, perm'lit to b~e given, or offer to give
anythiing of vanlue for thle pulrposee of inlfluencing or rewyarding h
action of any emiployee or avyent of another., ini relation to thebui
ness of the empl-loycr olf suchi employee. or the principal of sulch
agent wit.hort, thle k~now~elrea of su~chJ em~ployert l or principal.
SEC. (j. NO member shall, directly or indir~ectly, give or pecrlitt to
be given or offer to give, mnoney~ o~ anyl~thingi of va~lue, to any cus-
tomer or p~rospective customer, or to anyionec else uplon the instigation
and for thle becnefit of anly customer or p~rosp~ective customer, to induce
such customers' or' proCsp~ct t ive ustomler to pu~1rch~se tires or tubes
frOn SUCh membnlers.
cSEC. r. NO member shanll secure confidential information concern-
ing the bus~iness of a comnpetito- r by a false or miisleadling staitement
or r~eprlesentation, by a false implersona!tionl of onle inl authority, byI
bribery), or by any other unfair~ method-.
SEc. 8. No) member shall uinfair~ly attempt to induce the breach of
an existing contrnet b~etw~een a competitor' and hisi employee or cus-
tomer or source of supply; nor shall any such miemnber unlfairly inter-
fere withi or obstruct the performance of suich contrafctual duties or
se rvices.
SEC. 5,. No member shanll brandl or manrk or pack any comlmodity
in any manner which tendls to deceive or misleadl purchasers~ with, re-
spect to th~e bra~ndl, radeil quality qjuantity. oiiriin, size, or sp~ecifica-
tion of such comlmodity.
SEc. 10. AIfter. February 1, 1934, no mnember shanll manufa~ctu r~e any
automobile. truck, and.*'or hus p~neumllatic tiresi which do niot clearly
indiente on the side wall of the easinr andc~ on thle label the number
of cord p~lies from b~ead to bead, built into the easing. B~reakrer strips
shall not be construedl as plies for side w-all or label markingr. Plies
extenldingi from the heel of one bend to the hieel of the other bend, ifE
of substantially the: same constructionn as othier plies in the, tire, shall
not be construed as breaker strips. The Codle Authority may desig-
nate such markings for purposes of this Section.
SEC. 11. The uDD.uthonized use by any member either in writing
or oral formi, of trade marks, trade names, or slogans identical with
or mn imitation of, those already in use by any other member, shall
be prohibited.
SEC. 12. ErO member shall withhold from or insert into any invoice
anything which would make the invoice a false record, wFholly or in
p~art., of the transaction to wh~-ich it refers, or makre any arrangement
which contemplates payment or settlement contrary to the face of the







348

invoice. No memuber shall postdate or predate orders, invoices, or
contracts. This Section shall not prohibit the granting of a bonus
in accordance with any member's regular program. :
S~EC, 13. \Vitm ten tlayS after the effective date of this Code, each
member shall file with~ the Association all Consumers' Preferred :!
Wholesale andr State Lists. The Consumners' Lists shall be the lists "
from which dealer and, or jobber discounts shall be applicable and
shall apply to the sale of tires and/or tubes to owners of less than
five vehicles. Thle Preferr~ed WYholesale Lists shall apply to com- -
me~rcial operators of five or more vehicles. The State Lists shall
apply to all State, County, andt municipal accounts. These lists shall
be effectiv-e immiedliately upon such filing.
(3) Thereafter, no member shall change suchi lists without filing
new lists with the Association. stating th~e effective date of such

effective date shall be not less than ten dnvs from the date of filing
of ther new lists.chnrs vceltit i u h c a g n le ~ dci n s c
(b>) Thle Associat~ion shalf, p~romptly after receipt of such revised
lists, notify all members affected. Such aff'ectedl members may there-
upon7 file w~ithi the Acsociation revisions of their lists which, if filed
prior to the date when the revised lists first filed shall go into effect,
mnay become effective on said dtate.
(c) No member shanll fill at old prices orders received or showing
postmark after 1":01 A.M. of the day upon which his new lists be-
come effrective. No member shall give any informantioni to any class
of tr~ade regard~ingi price changes prior t~o t.he da~te of filing thereof
w~ith thle Association.
*C1EC. 14. No members' shall solicit the r~einstatemnent of any order
prev\iously cancelled, at other. than his own current~ prices.
SCEC. 15. Effective immediately upon the signing of this Code by
the Pr~esident, no member shall sell or offer for sale any tires or
tuibes which~ have been, or should be, properly classified as seconds ",
exc.ep~t to emplloyeesi for their ow~n personal use and niot for resale
purpocses No member shall sell "' firsts as "' seconds "! under any
ci crcumsta nces.
SEC. 16j. NO mnember shall sell or dispose of any tires or tubes
of ob~solete, discontinued design or change-overs at special prices
withlolt. first
(a)Noifyngthe Code Authorityl two (2) w~eekrs in advance of.
the number of~n Itirs or tubes to be so disposed of, with the reasons
t he refo r.
(b) StatingS discoulnt belowr the: regular established price at wvhich
they are to be sold.
c) B~randingr such tires, other than changae-oer~s, so to be sold
wiha s~itable decsignl that shall be designated by the Code Author-
ity.v
(d) Obtaining the approval of the Code Author~ity for such dis-
posnI. If the Codle Authiority denies approval or fails to notify such
m~embter of its dlecision within ten (10) days, such member mlay ap-
pea to t~he Admllinis~trato r who shall have power to girant approval.
TI'e Code Auth~ority~ shall adv\ise all members of the Industry simu~l-
taneously of such author~izations.







349


SEc. 17. For the purposes of Sections 15 and 10; reinn' "seconds ",
obsolete and discontinued designs andl change-ovecrs shall be defined
as follows:
(a) Seconds shall be defined as all tires und/lor tubes which
have become defective in the course of manulfacture.
(b) Obsolete and discontinued designs shall be defined as all
tires andr/?or tubes whlichl have actually been discontinued from~ pro-
duction.
(c) Change-over tires shall be defined as original equipment tires
which have been r~emoved from new vehicles anld which are practi-
cally new or show only slight wear.
SEC. 18. NO member shall extendi dealers' prices to per~sons other
than dealers as herein defined. If the applicaonothsdfiio
in an~y particular case should work an unjust hardship on any member
of the Industry or customer, such member orustomer mray appeal
to the Code Authority which shall have power to mak~e such excep-
tion as justice may require.
SEC. 19. NO member shall extend jobbers' prices to dealers~ as
herein defined. If the application of this section in any particular
case should wo~rk an unjust ha~rdship on any member of the industry
or customer, such memiber or customer may appeal to the Code Au-
thorityr which shall have power to makie such exception as justice
may require.
SEC. 20. No mlembel~r shjlall take over from any dealer or jobber,
either by purchase or exchange, any tires and/or tubes of other
members.
SEc7. 21. No member shall offer or give any tires or tuabes, or sell
any such tires or tubes at reduced prices, for test purposes without
prior approval by the Code Authori~tyS.
SEc. 22. No member shall offer to a dealer the discounts and/or
allowances given to a warehouse dealer unless the dealer shall be
required to perform the services of a warehouse dealer.
SEC. 23. The Code Authority shall within thirty (30) days after
the effective date, obtain from; the Tire Comnmittee of the Tire and
Rim Association standard specifications for the Industry- covering
cross sectional diameters, anti-skid depths, total tread thicknlesses
and such other specifications as in their judgment will standardizee
manufacturing tolerances within the Industry. When these stand-
ardls shall have been submitted to the Industry and approved in ac-
cordance with A~rticle XY, the Association shall send a copy of such
standards to every member of the Industry. Such stanldar~ds shall
become effective ninety (90)j days thereafter and any dleviatio~n in
the manufacture of any tires beyond the maximumi so established,
shall constitute an unfair trade practice unless such tires which ex-
ceed these specifications shall be sold at a proportionately higher price
which truly reflects their higher cost. The Code Authority upon
request of any member shall investigate and rule upon any disputed
cases. Shouldl the application of this ,Section in any particular case
work anl unjust hardship on any member of the Inldustry, ~uch~ memn-
ber may appeal to the Administrator who shall have pow~Ter to granit
such exceptioni as justice miay require.







350


SEc. 241. Effective immediately upon the signing of this Code by
the President no. members shall accept written or verbal orders, agree-
mnents, or contracts for the sale of tires or tubes to any commercial
and 'or national account, the effect of which is to guarantee prices
on future deliveries.
SEC. 25. Effective immediately upon the signing of this Code by
the President no member shall use terms of payment to national or
commercial accounts exceeding the customary 10th proximno terms or
renew or extend existing orders, agreements, or contracts as a subter-
fuge, in violation of Section 24. For purposes of interpretation of
Section 24 orders delivered within thirty (30) days after date of
order may be construed as immediate delivery "; deliveries after
such thirty (30) days' period shall be construed as "L future delivery "
and billed at prices in effect on delivery date.-
SEC. 26. No member shall offer for sole a rebuilt and/'or retreaded
tire without marking on the sidewall thereof a suitable design to be
approved by the Codle Authority.
SEc. 27. Violation of any of the provisions of Article VTI shall be
considered an unfair trade practice and subject to the penalties of the
Act.
ARTICLE VII

A. COMPLAINTS AND APPEAL

SECTION 1. Any interested party shall have the right of com-
plaint to thte. Code Aiuthorit~y and Prompt hearings and decision
thereon in respect to any matter arising under this Code. Such
complaint mulst be filed in writing with the Code Authorityr within
a reasonable period of time after the complaint arises.
SEC. 2. Any interested party shall have the right of appeal to thie
Administrator under such procedure as hie shall prescribe in respect
to any decision, rule, regulation, order, finding, or omiission to act by
the Code Authiorit y.
SEC. 3. The Codle Authority shall be sp~ecifically charged with the
responsibility for proceeding against any member of the Industry
who shall violate any provisions of this Code.

ARTIcLE VIII

.\. MONOPOLIES

S~ECTION 1. No provisions of this Code shall be interpreted or
applied~ in such a ma~nner as to permit monopolies, or monopolistic
practices, permit or encourage unfair competition; or elimiinate,
oppress, or discrimmiiate against, small enterprises.
ARTICLE I11

A. REVISIONS AND MODIFICATIONS

SECTION 1. Thlis Codle and all th~e provisions thereof are expressly
made subjec-t to, the right of the Pr~esident? inl accordance with the







351


provisions of Subsection (b) of Section 10 of the Natio~nal Industrial
Recovery Act, from timne to time to cancel or mnodify nyorder,~CP
approval, license, rule, or regulation issued under T'l itleIo si c
and specifically, but without limiitation, to the righ~t of the Pres~ident
to cancel or modify his approval of this Cod~re or any1 conditions
imposed by him upon his approval thereof.
SEc. 2. Such of the prov.isionis of this Codle as are not I~reuiredl by
the National Industrial Recovery Act to be included herein, many,
with the approval of the President? be modifiedl or eliminated- as
changed circumstances or exp~eriences mlay indlicate.
SEC. 3i. By? presenlting this C~ode the Indulst1ry and othlers. assenting
thereto are not. consenlting to any~ mlodification thereof; and each
reserves the right to object independlently or jointly to any modifiedl
Code.
SEc. 41. If any mermber of the Industry is likewise enlgag~dl in part,
in any other industry or tradle, this Code shall apply only to such of~
the activities of said member as are comnprehendcedl within thie Rubber
Ti re Ma~nu factur~ing I industry.
SEC. 5. The provisions of this Code nowF or hereafter adopted
with regard to prices, discounts, deductions. allowances, extras,
commissions, or mlethodls and c or termu~s of sale shall not apply to
direct export sales. Upon appliention to the C'ode. Authority, any
member of the Industry mnay secure exemnptioni from such p~ro-
visions of this Code in r~egard to sales in th~e course of export
(i.e., sales destined ultimaotely for export) or' sales of mnaterials
used in the manufacture of products for expor~t. Thle term "ex9-
port shall include, in addition to shipments to foreign countries,
shipments to territories andi possessions of the United Sjtates except
Alaska.
ARTICLE ?i

A. ALTERATIONS AND AMLENDMECNTS

SEC:TION. 1. Any addition, alteration, or amiendm~entt to this Code
may be proposed by\ any m1emlberl of the Codel, and after receiving
the approval of fifty~-one percent of the members of the Code,
providing such members represent at least. fifty~-one p-ercent in vol-
ume,, shall be npresentedl t~hroulgh the Codle Authority~ to the Admin-
istrator for approval after such notice and hearings as he mnayt
prescribe. Provided, however, thiat any addtitio, ail te ra tlon, or
amendment which has received the approval of either a miajorityI uin
number or in volume of the members of the Code, may, after u
notice to all members of the Code, also be trannsmitted to the Admin-
istrator for his consideration.

ARTICLE XIY

A. FURTHER RECOMMRENDATIONS BY THE CODE AUTHORITY

S~ECTION 1. WVithin sixty day's after th~e effective dlate of th~is Code,
the Code Authority shall, after such negotiations as many be neces







352

sary, make recommendations to the Administrator for the equitable
adoption of a uniform Stalndard Warranty by all' members of the
Ind ust ry andl all tire retailers, jobbers, wholesalers, and special brand
distributors. In the interim, no members' shall change his present
form of war~ranty.v
SEC. 2. Since the leasing of tires to taxicab and bus companies on a
time or milengre basis is an established practice in the Industry, the
Code Authority shall make n complete study of this practice and
submit recommendations to the Administrator within ninety days
from. the approval of this Code for. the elimination of any unfair
practices wvhich may exist in this field.
SEC. ;3. Upon completion of the cost control plan outlined in
Article! V, the Code Authlority shall mnake recommendations to the
Admni nist rat or for the simpillification of the present num-ber of lines
of tires.
SEc. 4. The Code Authority shall proceeds with a survey of the
productive capacity of the InduIstry. andl submit recommendations to
the Administrator not later than Alarch 1, 19341, concerning the
desirability of limiting the creation of additional productive capacity
in the Industry.
SEc. 5. The Clode Authority pledges itself to undertake imme-
diately a study of seasonal fluctuations in production and make recom-
mlendations to the Indulstr~y designed to affordl a greater stability of
emnploymenit.
bE~c. 8 The COde Authority shall, in cooperation withi the Code
Authority to be set up for thle Retail Rubber Tire and Battery Trade,
submit recommendations to the Administrator for the establishment
of a joint committee for the coordination of thle Code for this In-
dustry with that of the Retail Rubber Tire and Battery Trade, with
a v\iew to joint consideration andl proper determination of any
common problems which re~late to the distribution of tires and tubes.
SEc. 7: Within ninety days after the approval of this Code, the
Cod~e ~Authority with the approval of the members of the C~ode,
in neccordance with Article X, shall miake recommnendations to the
Admuinistrator regarding th~e e~tablishmentn of a1 complete open-price
system for the Industry.. In1 the meantime, every member of t.he
Industry,' withinl thirty d'ays after th~e appr'oval of this Clode, shall
file withl the Adminilstrator,! or his dlesilnated agfent, for his ex-
clusive iniformantion, in such~ manner anid form as he may request,
all prices, discounts, bonuses, terms, and conditions of sale to all1
customers, in order that the Admlinistrator may be fullly informed
as to condlitionsi in the Industry.
(a) TIhereafter, no member shall sell anly tires or tubes at prices
flower or at discounts or bonuses greater or on termsu or conditions
miore favorable than the prices, discounts, bonuses, terms, and condi-
tions filed as afor~esnid, unless he shall first file revisedl prices, dis-
counltS, bonuses, sterns, andl conditions with the Adlministrator to
take effect in not less than ten days from date of filing. -







353

ARTICLE ,YII

A. EFFECTIVE DATE ANhD TERMIINATI~ON

SECTION i. TifS COde Skilli l6000180 efi'ectil'P, PXrlept ns Otherwcise
specifiedl herein, on the first Mionday' after it shall1 hav\e been ap-
prov'ed by the President. of the United States. It hall continue inl
effect until Julne 16, 1!,3., or until such tirne prior th~ereto whten the
President, shall, by proclamation, or thie Congress~ .hall, by joint
resolution, de~clare that the emlerg~ency~ rcog,,nizedl by? Section 1 of
the National Indlustrial Recover~y Act hans enledl.
Approved~ Code No,. 17-1.
Registryv No. S07-1-00j.
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PAGE 1

Approved Code No. 17 4 Registry No. 807-1-06 NATIONAL RECOVERY ADMINISTRATION CODE OF FAIR COMPETITION FOR THE RUBBER TIRE MANUFACTURING INDUSTRY I i All AS APPROVED ON DECEMBER 21, 1933 BY PRESIDENT ROOSEVELT _ .. -U.S. OEP~TOP\ 1. Executive Order 2. Letter of Transmittal 3. Code UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents V

PAGE 2

This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by dist1ict offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga.: 504 Post OfficeBuildi ng. Birmingham, Ala.: 2 5 7 F ederal Building . Boston, Mnss. : 1801 Customhouse. Buffalo, N.Y.: Chamber o f Commerce Building. Charleston, S.C.: Chamber of Co mmerce Building. Chic ago, Ill.: Suite 1706 , 201 N orth Wells Street. CleYcland, Ohio : Chamber of Commerce. Dallas , Tex. : Chamber o:f Commerce Building. Detroit, l\fich.: 2213 First National B ank Building. Houston, Tex.: Chamber of C ommerce Building. Indianapolis, Ind.: Chamber of Commerce Building. Jacks onville, Fla.: Ch ambe r of Commerce Building. Kansas City , l\Io.: 1 0 2 S Il::tltirnore AYenue. Los A n g el e s, Calif.: 11 6 3 South Broadway. Lou i sYill e, Ky.: 4 0 8 Federal Building . l\Iemphis, Tenn.: 2~9 Federa l Build in g . l\Ii rnwn p o li s, l\l i n n. : 2 1 3 Fecleral Build ing. N e w Orlea n s, La.: Room 22G-A, Cus tomhous e. New York, N. Y. : 7 3 4 Customho u se. Norfol k , V a.: 40G East Plume Street. P hiladelph ia. Pa.: 033 C o m mercia l Trus t Iluil c 1ing. Pitts!JUrgh , P a.: C h aml.>e r of C ommerce Buildi n g . Portlnnc1, Oreg. : 215 Ne w P o s t Offic e Building. l:lt. L o ui s , i\1o.: 50G Oli ve S treet. San F rn11cfaco, C a li f. : 310 Customho u s e. Seattle, Wash.: 80 0 Federal Dui lding.

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Approved Code No. 174 CODE OF FAIR COMPETITION FOR THE RUBBER TIRE MANUFACTURING INDUSTRY As Approved on December 21, 1933 BY PRESIDENT ROOSEVELT Executive Order 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 Competition for the Rubber Tire Manufacturing Industry, and hearings having been held thereon and the Administrator having rendered his report containing an analysis of the said Code of Fair Competition together with his recomm endations and findings with respect thereto, and the Administration 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 the said Code of Fair Competition be and it is hereby approved, upon condition that, without in any way limiting the effect of Section 10 (b) of Title I of the National Industrial Recovery Act, or of Section 1 of Article IX of said Code, I specifically retain the right to cancel this approval of said Code, or to modify said Code in s uch manner as may be required to prevent any unfair tra le practice s within the Rubber Tire Manufacturing Industry which may be c ome evident in any investigations by the Federal Trade Commission or in the a pplication of aid Code; and 28702-296-48--33 (335)

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336 The Administrator is hereby directed to conduct such investigations as may be necessary to advise me fully within ninety days concerning the existence or development of any unfair trade practices within said Industry, utilizing the aid of the Federal Trade Com mission in the expeditiou s determination of any complaints concerning such unfair trade practices. Approval recommended: HUGHS. JOHNSON, Administrator. THE WHITE HousE, FRA KLIN D. ROOSEVELT. D ecem, b er Bl, 19 3 3.

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THE PRESIDENT' DECEMBER 20, 1933. The White House. Sm: The proposed Code of Fair Competition for the Rubber Tire :Manufacturing Industry wa submitted to the Administrator on July 31, 1933. It was reconsidered by the Industry and a revised code wa. submitted on October 3, 1933, by the Rubber Manufacturers As ociation, representing approximately 85% of the members of the Industry and volume of production. The Hearing was conducted in vV ashington on October 20, 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 OF WORK Under this Code, factory employees are limited to 36 hours per "-eek averaged over a calendar year, with a restriction of 8 hours per day and 42 hours in any one week. Overtime in excess of 3G hours per week shall be paid at the rate of time and one third. Maintenance crews, engineer firemen, shipping crews, and tire testers are limited to 40 hours per week and 8 hours per day, except in cases o-f emergency. Overtime in excess of 40 hours per week or 8 hours per day shall be paid for at the rate of time and one third. Watchmen are limited to 84 hours in any two-week period with one day off in seven. Accounting, clerical, office, service, sal es, or other employees ( except outside salesmen) receiving $35 .00 per week or less, are limited to an average of 40 hours a week over the period of one month, but in no ca e shall they work more than 48 hours in any one week. Salaried employees receiving more than $35.00 per week and outside alesmen arc not restricted to any maximum hour . ,,, AGES This Code provide for a minimum wage of $0.40 per hour unless the rate for the same class of work on July 15, 1929, was less than $0.40, in which ca . e the rate per hour shall not be less than the rate paid on July 15, 1929. In no event shall the rate per hour be less than $0.35. Apprentices, during a six weeks' apprenticeship, may be paid not le s than 80% of these minimum rate. Such apprentices shall not con titute more than five percent of the total employees in any one establishment. Minimums for salaried employees range from $12.00 per week in towns of l ess than 2,500 population to $15 .00 per week in cities of 500,000. Clerical apprentices, office bo) s and girls may be paid not le than 80% of these minimums but may not constitute more than (337)

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338 five percent of the total office employees in any one establishment. Provision is made for superannuated and disabled employees; for equalization of rates of pay for men and women performing the same work; for e quitable adjustments of pay schedules of factory emplo yee s above the minimum and for the posting of the labor provision s of the Code. OTHER PROVISIONS OF THE CODE The Code provides that the Code Authority shall undertake a study of cost s in the Industry and submit recommendations to the Admini trator within sixty days from the approval of the Code, for the incorporation of an adequate cost recovery provision in the Code. The Industry believes that the problems presented by the existence of widely varying selling programs and the use of many channels of distribution make such an inquiry necessary. Final adoption of any provisions regarding selling below cost is specifically subject to the approval of the Administrator. The Industry has adopted twenty-seven trade practice provisions in this Code, designed to eliminate various forms of unfair com petition. The Code further provides that the Code Authority shall make recommendations to the Administrator at a later date, in regard to the adoption of a standard warranty, the status of time or mileage contracts, the simplification of the number of lines of tires, the establishn1ent of a committee to coordinate this Code with that of the Retail Rubber Tire and Battery Trade and the adoption of an open price system for the Industry. ECONOMIC EFFECT OF CODE The following tabulation shows the effect of the depression on the Industry: 1929 1932 Decrease Sale s ________________ ____________________ _ _____________ _ _ _ ________ $675,000,000 $300,000,000 Production (c asing s )._____________________________________________ 69,000,000 40,000,000 W a ge e arne rs_______ ______________________________________________ 74,700 38,800 Number of compa nies____________________________________________ 62 35 48~ 44o/o The Industry has already made the wages and hours provisions of this Code effective in a large degree, as is indicated by the following table: -j Productio casings Employ-n ment wage earners 1933 May _______________________________________________________ 5,200,00 June __ _ ---______ . _ _ _ . ____ . ____ _. _ _ _____ . _ _____ _ . __ .. 6, 100, 000 Ju I y _ • -•.• __ • __ •••• _ ••• ______ • ___________________________ . 5, 700, 00 Aug u st________________________________________ _ ____________ 5, 000, 00 September_ _ _ . _____________________ . _________________ ._.__ _ 4, 000, 00 October ___ . _________ • _ _ _ _ _ ___ _________ _ . __________________ . 3, 400, 00 0 38,545 I 44,148 0 49,680 0 52,962 0 52,850 0 60,400 -Average I A verago hours hourly per week I earnings \ 38 $0.585 42 . 579 38 .620 32 .654 30 . 681 31 .688

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339 October production was only 65% of the production in May. Ne-ver t h e le s employment increased ov e r 30% and average hourly earnings increased approximately 17 7c . Average hours per wee k have declined due to seasonal decline in production . wh i c h invariably occurs during the months of October, Novemb e r , and December. No other Industry can derive greater b e n e fit s from the A c t. This Code in no sense embodies u complete solution of all the problems of the Industry . It does represent a real b eginnjng . The reclamation of this Industry from the destructiYe competition which exists must be a continning tas k over a lon g period of time. FINDINGS The Administrator finds that: 1. This Code ~ omplies in all respects with the pertinent phrases of Title I of the Act, including but without limitation Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof. 2. The Rubber Manufacturers' Association, Incorporated, is truly representative of the Rubber Tire Manufacturing Industry and its bylaws contain no inequitable r e tric tions on membership. 3. The Cod e is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate to discriminate against them. The Code wil] t end to effectuate the policy of Title I of the National Industrial Reco-very Act. It is rec o mmended, therefore, that this Code be approved. Respectfully, HUGH s. JOHNSON, Administrator.

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CODE OF FAIR COMPETITION FOR THE RUBBER TIRE MANUFACTURING INDUSTRY To effect the policies of Title I of the National Industrial Recovery A ct, this Code is submitted as a Code of Fair Competition for the Rubbe r Tire Manufacturing Industry, and upon approval by the President, its provisions shall be the standards of fair competition for this Industry, and shall be binding upon every member thereof. ARTICLE I A. DEFINITIONS SECTION 1. The term "Rubber Tire Manufacturing Industry " or "Industry", as used herein, shall mean the manufacture for sale in the continental United States (including Alaska) and sale at whole sale by manufacturers or subsidiaries or affiliates of the same of solid or pneumatic rubber tires and/or pneumatic rubber tubes, together with such relat-ed branches or divisions as may from time to time be included under the provis ions of this Code by the President, after s uch notice and hearing as he may prescribe. SEc. 2. The term" member of the Industry" or" member" as used herein includes, but without limitation, any individual, partnership, association, corporation, or other form of enterprise engaged in the manufacture or both manufacture and sale at wholesale of any products of the Industry, or any subsidiary or affiliate of the same engaged in the sale at wholesale of any products of the Industry. SEc. 3. The term "member of the Code" as used herein, includes any member of the Industry wh0i shall expressly signify assent to this Code. SEc. 4. The term "employee" as used herein, includes any and all person s engaged in the Industry, however compensated, except a member of the Industry. SEc. 5. The term "Association" as used herein, shall mean the Rubber Manufacturers Association, Incorporated, a corporation or ganized under the law s of the State of Connecticut and having its principal office at 250 ,vest 57th Street, New York, New York. SEC. 6. The t erm " dealer " a usea herein, shall mean anyone, whether or not a member has a financial interest therein, who purchases a member's brand of tires and/or tubes, from a member or jobber, under contract for sale, eithe r absolute, conditional, or on con signment, and who in turn r e ells to other than employees or affiliated companie , at l east 75% of the tires or tubes so purchased. Company retail stores, whether wholly or partly owned, shall be cla sified a s dealers. (3-!0)

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341 SEC. 7. Theterm "jobber" as m ed h ere in, shall mean anyone who sells at least 75% of his total volume of tires and/or tubes through or to dealers for re s ale to con ume r whether or not s u c h dealers are owned or affiliated with or controlled by s u c h j obbe r , and who performs the servic e of a jobb e r s uch as maintaining a stock, selling, shipping, billing, and carrying account s r ece ivabl e . SEc. 8. The term " warehouse dealer " as used h e r e in, shall mean a dealer who act s as a shipping agent for a m em b e r of the Industry with sales, credit , and c oll ect i o n s handled by that member. SEc. 9 . The term "the President" a . u eel h e rein, shall mean the President of the Unite l States. SEc. 10. The t erm "the Admini trator " as used h e r ein, shall mean the Administrator appointed under Title I of the National Industrial R ecovery Act. SEc. 11. The term "the Act", as u sed h erei n, shall mean the National Industrial Recovery Act. SEc. 12. Population for the purposes of this Code shall b e determined by refere nce to the late t Federal Census. ARTICLE II A. ADMINISTRATION AND ORGANIZATION SECTION 1. To further effectuate the policies of the Act, a Tire Code Authority (herein referred to as the Code Authority) i s h ereb y set up for the administration of this Code. SEc. 2 . The Code Authority shall consist of eight persons who shall be se l ected by the Indu try by a fair 1nethod of se l ection, according to such rules as it may determine. The Administrator, in his discretion, may appoint not more than three additional members , without vote , to represent the Administrator, without expense to the Industry or A ssociation. No two of the members of the Code Authority or their alternates shall b e affiliated with any si n g l e member of the Industry. (a) In order that the Code Authority shall at all times b e truly representative of the Industry and in other respects comply with the provisions of the Act, the Administr a to r may provide s u ch hearings as he may deem proper; and if thereafter h e shall find that the Code Authorjty i s not truly representative or does not i11 other respects comply with the provisio ns of the Act, h e may require m odification in the method or se l ectio n of the Code Authority. (b) The Preside n t of the Assoc iation and its Ge neral :Manage r s h a ll act as ex officio m embers of the Code Authority with no voting power. The General Manager of the Association shall act as Chairman of the Code Authority. ( c) One alternate shall be selected for each men1ber of the Code Auth?rity, with full power to vote in the absence of his principal. Provide d that no two alternates shall b e affiliated with any single member of the Industry. ( cl) Shoul d any matter come b efore the Code Authority which pecifically involve s acts, conduct, or the interes t of a member of the Industry with "hich any 111.ember of the Code Authority i asso ciated or emplo3 eel, uch mem b e r of the Code Authority shall be '..870:::! 0-2!)6-48-3 3 --2

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342 disqualified to act in such matter. The designated alternate shall act in place of the disqualified member of the Code Authority. ( e) Meetings shall b e called by the Chairman either at his dis cretion, or on ,_ he suggestion of any thr e members of the Code Authority. The Code Authority shall determine it own rules o f procedure. SEc. 3. The Code Authority shall have the duties and powers herein provided su bject to the right of the Administrator, on review, to disapprove any action taken by the Code Authority. (a) The Code Authority shall make investigations as to the functioning and observance of any provisions of this Code at its own in tance, or on complaint by any person affected, and report its findings and recommendation s to the Administrator. (b) The Code Authority hall study the trade practice provisions incorporated in this Code, and the operation thereof and shall make suc h recommendations to the Administrator from time to time which it considers desirable, for modification or addition thereto, provided such recommendation s shall have been approved by members of the Co de as provided in Article X. Upon approval by the Administrator, after such hearing as h e may prescribe, s uch recommendations shall become a part of this Code and have full force and effect as provisions hereof. ( c) The Code Authority may at its dis cretion present recom mendations to the AdJninistrator, based on condi tions in the Industry, as they may develop :from time to time, provided E>uch recom.mendations shall have b0e n approved by members of the Code us provided in Article X. Such recommendations shall b e designed to :facilitate the operation of the provisions of this Code and the policy of the Act. ( d) The Code Authority may require reports from members of the Indu try in re spect to hours o:f labor wages, conditions of em ployment, number of employees, plant capacity, production, orders, shipment , inventories, and any other matters pertinent to this Code in order that the Pre ident may be k ept informed with respect to the observance and perform'.lnce of the Code. ( e) The Code Authority may, at its discretion, set up any or all of the following committees or any other committees, if their existence will further effectuate the policies of the Act, viz: Accounting Industrial Relations Complaints and Grievances Statistical Fair Practices ( f) The Code Authority may set up :1 committee on imports whose duty it sh a ll be to investigate and inform the President as to the importation o:f competitive articles into the United States in sub stantial quantities or increasing ratio to domestic production, on such terms or under such conditions as to render ineffective or to seriously endan~er the maintenance of this Code as provided in Section 3 ( e) ot the Act. The Committee shall make such reports of its findings to the Code Authority w110 shall inform the President through the proper channels. SEc. 4. The Association is hereby designated as the agency :for the collection of statistics, data, reports, and information under the

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343 Code, provided that no inequitable restrictio ns upon rnemb ~ r ship therein shall at any time be imposed. (a) Every member of the Industry shail prepare nnc.1 file with the Association at such times and in such manner and form as the Code Authority may require, stati stics of plant capacity, production, sales, orders received, inventories, wage rates, hours of work, :ind such other data or information as the Admini trator may, fr m time to time, require. S uch reports and/or records may be either sworn or unsworn as required. (b) In addition to information required to b e submitted to the cde Authority, every member of the Indu. try c:hall furni h ci.irectly to governmental agencies such statistical information as the Administrator may deem necessary for the purposes re cited in Section 3 (a) of the Act. ( c) Except as otherwise provided in the Act, all s u c h stati tics, data. nnd information filed in nccordance with this Article shall be confi' clential, and the reports and r ecords from any individual m e m b e r of the Industry shall only be revealed to the Administrator or other governmental authority, to the extent necessary for the administration and enforcement of the provisions of this Code . ( d) If the A sociation shall ha Ye r easo n to b e lieve that any re ports submitted by a m ember are inaccurate, s u c h reports may be verified by a disinterested anc1 jmpartial agency designated by the Code Authority, and for such purpose s uch agency shall have access to any and all relevant book s ancl records of s uch member. ( e) Any refusal or per i stent or deliberate neglect by any m ember of the Industry to fil e or furni h information required under this Article shall constitute an unfair trade practice and a violation of this Code. SEc. 5. Each member of the Code shall b e entitled to participate in the activities of the Association in connection with the administration of the Code. Any other member of the Industry n1ay b eco me entitled to participate by becoming a member of the Code. Each member of the Code shall bear an equitable share of the cost of maintenance of the Code Authority, either by becoming a member of the Asso ciation or by paying to the Association a sum equal to its reasonable share of the expenses incurre d in the administration of this Code, as determined by the Code Authority, subjec t to review by the Administrator. ARTICLE III A. INDUSTRIAL-RELATIONS POLICIES SEC'L'ION 1. In compliance with Section 7 (a) of the Act it is provided: (a) 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 coerci o n of employer3 o f labor or their agents in the de signation of s uch representatives or in self-organization or in other concerted a ctivities for the purpose of collective bargaining or other mutual aid or protection. (b) That no employee and no one seeking employment shall be required as a condition of employment to join any company union

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344 or to refrain from joining, organizing, or assisting a labor organization of his own choosing; and ( c) That employers shall comply with the maximum hours o:f labor, minimum rate3 of pay, and other conditions of employment approved or prescribed by the President. SEO. 2. No person unde r 16 years of age shall be emplo yed in the Indu try. No person under 18 years of age shall be empl oyed on any milling or calendering operations or any other operations where there may be r ecognized hazards connected with the job o r operation. SEC. 3 . No provision in this Code shall supersede any State or Federal law which imposes more stringent requirements on em ployers as to age of empl oyees, wages, hours of work, or as to safety, health, sanitary, or genera l working conditions, or insurance, or fire protection, than are imposed by this Code . ARTICLE I V A. HOURS SECTION 1. Except as provided in Section 2, no factory empl oye e shall work or be permitted to work, in excess of a n average o f 36 hours in any one week, av raged over a calendar year, nor more than 8 hours in any 24-hour period. Provided that no such em ployee hall work or be permitted to work more than 42 hours in any one week. For all hours worked in excess of 36 hours per wee k, overtime shall be paid at the rate of time and one third. It is the intent that the hour worked by employees unde r this Section s h all be consecutive, except that reasonable provision may be made for eating period. SEc. 2. Maintenance crews, engin ee rs, fir e m en, shipping crews, and tire testers shall not work or be permitted to work in excess of 40 hours in any one week nor more than 8 hours in any 24-hour period. Provided, however, that this limitation of hours shall not apply in cases of emergency, but in s u c h cases all hours worked i n excess of 40 hours in any one week or 8 hours in any 24-hour period s h all be paid for at the rate of time and one third. (a) '\Vatchmen shall not work or 'he permitted to work more than 84 hours in any two weeks' p eriod, provided that such employe es shall h ave one day off in seven. SEc. 3 . Accounting, clerica l , office, service, s ales, or other em plo yees ( excepting outside sa l esmen ) shall not work, or be permitted to work, in excess of an average of 40 hours a week over the period of a month, nor more than 48 hours in any one week. SEc. 4 . The maximum hours fixed in Sections 1, 2, and 3 shall not apply to sa laried emp l oyees in any managerial, executive, cler i cal, supervisory, or technical capacity rece iving more than $35.00 per week, nor to any outside sal esmen. SEc . 5 . No emp lo yee hall work, or be permitte d to work, for a total number of hours in excess of the number or hours prescribed for each week and day, whether employed by one or more employers; provide 1, however, that if any employee works for more than one emplo3 er for a total number o-f hours in excess of suc h maximum

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345 without the knowledge or connivance o-f any one of his employers, such employer hall not be d emed to have violated this sectio n. SEc. 6. Jo employee shall be classified in any of the foregoing exempted cla ses unle ss he performs functions identica l with those performed by employees thus classified on June 16, 1933. B. WAGES SECTION 1. Except as herein below provided, no employee shall be paid in any pay period less than at the rate of forty cents ( $ 0.40) per hour. Provided, however, that where the hourly rate for the same or similar cla s s of work on July 15, 1929, was less than forty cents ($0.40) per hour: no employee shall be paid at less than the rate per h our paid on July 15, 1929, but in no event shall the rate. per hour be le s s than $0.35 . (a) Apprentices, during a six weeks' apprenticeship may b e paid not le ss than eighty percent of the above specified minimum rates. Such apprentices shall be understood as persons having no previous experience or emp l oyment on similar work in the Industry and shall not constitute , more than five ( 5) per cent of the total employees covered by this Section, in the employ of any memb er . SEo. 2. No salaried employee ( except outside salesmen, office girls and boys, and clerical apprentices) shall be paid l ess than .at the rate of: $15.00 per week _______________ Cities o-rnr -00,000 population or in the imme-diate trade area of such a city. $14.50 per week _______________ Cities between 250,00-0 and 500,000 p op ul ation or in the immediate trade area of such a city. $14.00 per week _______________ Cities between 2,500 and under 250,000 popula-tion or in the immediate trade area of such a city. $12.00 per week _________ _____ _ Towns of less than 2,500 population. (a) Clerical apprentices during a six months' apprenticeship and office boys and girls may be paid not less than 80% of the above minimums. Such excepted office employees shall not exceed 5% of the total number of ern.ployees covered by Section 2, in the employ of anv member. SEc. 3. The provision s in Article IV-B shall not apply to any employee partially incapacitated through age, injury, or disease; provided, however, that such employee shall receive not less than $0.25 per hour. Each member of the Industry shall report to the. Association monthly the number and names of emp loy ees so classified. SEc. -. Female employees performing the same work as male employees in manufacturing operations shall receive the same rates of pay as male employees. SEc. 5. Article IV-B establishes a minimum rate of pay which shall apply whether an emp loye e is actually comnen sated on a time rate, piecework, or other basis. ... SEc. 6. Equitable adju tments in all pay schedules of factory employees above the minimum shall be made within thirty (30) days after the appro, al of this Code by any members who have not here-

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346 tofore made such adjustmentr•, and the first monthly reports of wages required to be filed under this Code shall contain full information as to all wage increases made since May 1, 1933. C. POSTING OF LABOR PROVISIONS SECTION 1. Every member of the Industry shall post in conspic u ous places in all departments of his establishment or establishments copies of Articles III and IV of this Code. AnTICLE V A. COST AKD MARKET STABILIZATION SECTION 1. The Code Authority hall immediately upon approval of this Code proceed to a study of a market stabilization p l an based on cost control. (a) A standard uniform system of accounting, for the guidance o f each member of the Industry, shall be developed under the direction of the Code Authority. (b) The Code Authority shall designate, with the approval of the Administrator~ a disinterested and impartial agency, to procure and compile the data required to complete the study and to act as the agency through which such compiled data shall be transmitted to the Code Authority, in order that all cost data of members of the Industry shall be kept con fidential. Each member of the Industry shall furnish such agency with s u c h reports as may b e designated by the Code Authority. ( c) The Code Authority shall confer with the Administrator from time to time in the course of formulating its r ecom m endations as to the plan for such market stabilization herein a.bove proposed. The Code Authority shall make an initial report concerning progress in the formulation of suc h a plan within thirty (30) days after the approval of thi" Code. Final recommendation shall be submitted to the Administrator within sixty ( 60) clays from date of Rpprova l of this Code. Si:c. 2. After such market stabilization plan base d on cost control shall have received approval by the Industry and by the Administrator, such plan shall become a part of this Code . Violation of any provision of such plan shall be considered an unfair trade practice and . uhject to the penalties of the Act. ARTICLE VI A. TRADE PRACTICES SECTION 1. No 1nember shall u se advertising ( whether printed, radio, display, or of any other nature) or other representation whicll 1s inaccurate in any material particular or which refers inaccurately to competitors or their commodities, prices, values, credit terms, policies, or services. No member shall, in any way, misrepresent any commodity (including its u se, trade mark, grade, quality, quantity, origin, size, specifications ) or his credit terms, values, policies, serv ices, or the nature or form of the business conducted.

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347 • SEC. 2. No member shall use advertising or selling methods or credit terms which tend to deceive or mislead a customer or prospective customer. SEc. 3. No member shall publi h or circularize unjustified or unwarranted threats of legal proceedings which tend to or have the effect of hara sing competitor or intimidating their cu tomers. SEc. 4. No member "hull ecretly off er or make any payment or allowance of a rebate, refund, commi sion, credit, unearned discount or excess allowance, whether in the form of money or otherwise, for the purpo e of influencing a sale; nor shall a member secretly extend to any customer any special service or privilege not extended to all customers of the same class. SEc. 5. No memb r shall give, permit to be given, or offer to give anything of value for the purpose of influencing or rewarding the action of any employee or agent of another, in relation to the busi ness cf the employer of such employee, or the principal of such agent without the lmo\\]edge of such employer or principal. SEc. 6. No member shall, directly or indirectly, give or permit to be given or offer to give, money or anything of value, to any customer or pro pecti ve customer, or to anyone el e upon the instigation and for the benefit of any customer or pro,spective customer, to induce such customer or prospective customer to purchase tires or tubes from such members. SEc. 7 . .r o rriember shall secure confidential information concerning the business of a competitor by a false or misleading statement or representation, by a false impersonation of one in authority, by bribery or by any other unfair method. SEc. 8. No member shall unfairly attempt to induce the breach of an existing contract between a competitor and his employee or custome r or source of supply; nor shall any such member unfairly interfere. with or obstruct the performance of uch contractual duties or services. SEc. 9. No member shall brand or 1nark or pack any commodity in any manner which tends to deceive or mislead purchasers with re ~pect to the brand, grade, quality, quantity origin, size, or specifica tion of such commodity. ~Ee. 10. After February 1, 193-:l:, no member shall manufacture any automobile, truck, and/or bus pneumatic tires which do not clearly indicate on the side wall o.f the ca ing and on the label the number of cord plies from bead to bead built into the casing. Breaker strips shall not be construed as plies for side wall or label marking. Plies extending from the heel of one bead to the heel of the other bead, if of substantially the same con,struction as other plies in the tire, shall not be construed as breaker strips. The Code Authority may designate such markings for _purposes of this Section. SEc. 11. The unauthorized use by any member either in writing or oral form, of trade marks, trade names, or slogans identical with or in imitation of, those already in use by any other member shall be prohibited. ' SEC: 12. ~? member shall withl:iold from or insert into any invoice anyth1no-w111ch would make the invoice a false record, wholly or in part, of the transaction to which it refers, or make any arrangement which contemplates payment or settlement contrary to the face of the

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3 48 invo i ce . No member shall postdate o r predate orders, invoices, or contracts. This Secti o n shall n o t prohibit the granting of a bonus i n accordance with any me m be r 's r egula r progra m. SEc . 13. vVithin ten days afte r the effect i ve dat e o f this Code , each member shall fil e with t h e Assoc i atio n all Co n sumers' Pre f erred "\iVholesale and State Li t s . T he Cons u me r s' L ists s h all b e the lists from which dealer and/or j obber d i sco u n t s s h all b e applic able and shall appl y to the sal e of tires a nd/or tubes t o owne r s o f l ess than five vehicles. The Preferred "\iVhol esa l e Lists shall appl y to c o mmercial operators of five or more ve h icles . The State Lists shall apply to a ll State, County, and municipal accounts . Thee lis t s shall be effective immediately upon such filing. (a) Thereafter, no member shall change suc h lists w i t h out filing new lists with the A,ssoc iation, stating the effecti Ye date o f s u c h changes ; pi.ovided that if such change i nvo l ves a reducti o n such eAfective date shall be not less than ten days from the date o f filin g of the new l i sts. (b) The Association shal l, promptl y after receipt of suc h r ev i se d l ists, noti.fy all members affected. Such affected members may the reupon file with the Association revisions of their lists which , if filed prior to the date when the revised lists first filed shall go i n t o effect, 1nay become effective on said date. ( c) No member shall fill at old prices orders received or sho wing po,stmark after 12: 01 A . M . of the day upon which his new lists be come effective. No member shall give any information to a n y clas s of trade regarding price changes prior to the date of filing ther eo f with the Association. SEc . 14. No member shall solicit the reinstatement of any orde r previously cancelled, at other than his own current prices. SEc . 15. Effective immediately upon the signing of this Code b y the President, no member shall sell or off er for sal e a n y t i res or tube,s which have been, or should be, properly classified as "seconds", except to employees for t heir own personal use and no t for r es ale purposes. No member shall sell " firsts " as " seconds under any circumstance ~ . SEc. 16. No member shall sell or dispose of any t ire,s or tubes of obsolete, discontinued design or changeovers at specia l pri ces without first (a) Notifying the Code Authority two (2) weeks in advance of the number of tires or tubes to be so d i sposed of, with the reaso n s therefor. (b) Stating discount be l ow the regular established price at which they are to be sold. ( c) Branding such tires, other than change-oYers, so to be sold with a suitable design that shall be designated by the Code A uthority. ( cl) Obtaining the approval of the Code Authority for s u c h d i s posal. If the Code Authority denies approval or fails to notify suc h member of its decision within ten (10) days, such member may appeal to the Adrn .inistrator who shall have power to grant approval. The Cod e Authority shall advise all members of t h e Industry simultaneously of such authorizations.

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349 SEc. 17. For th<:i purposes o:f Sections 15 and 16 herein," seconds", obsolete and discontinued designs and change-overs shall b e defined as follows: (a) "Seconds" shall be defined as all tires and/or tube s which have become defective in the course o:f manufacture. (b) Obsolete and discontinued designs shall be defined as all tires and/or tubes which have actually been discontinued from production. ( c) Chan~e-over tires shall be defined as original equipment tires which have been removed :from new vehicles and which are practically new or show only slight wear. SEc. 18. No inember shall extend dealers' prices to pers ons other than dealers as herein defined. If the application of this definition in any particular case should work an unjust hardship on any member of the Industry or customer, such member or customer may appeal to the Code Authority which shall have power to make uch exception as justice may require. SEc. 19. No member shall extend jobbers' prices to dealers as herein defined. If the application of this section in any particular case should work an unjust hardship on any member of the industry or customer, such member or customer may appeal to the Code Authority ~hich shall have power to make such exception as justice may require. SEc. 20. No member shall take over from any dealer or jobber, either by purchase or exchange, any tires and/or tubes of other members. SEc. 21. No member shall offer or give any tires or tubes, or sell any such tires or tubes at reduced prices, for test purposes without prior approval by the Code Authority. SEc. 22 . No member shall offer to a dealer the discounts and/or allowances given to a warehouse dealer unless the dealer shall be required to perform the services of a warehouse dealer. SEC. 23. The Code Authority shall within thirty (30) days after the effective date, obtain from the Tire Committee of the Tire and Rim Association standard specifications for the Industry covering cross sectional diameters, anti-skid depths, total tread thicknesses and such other specifications as in their judgment will standardize manufacturing tolerances within the Industry. When these standards shall have been submitted to the Industry and approved in ac cordance with Article X, the Association shall send a copy of such standards to every member of the Industry. Such standards shall become effective ninety (90) days thereafter and any deviation in the manufacture of any tires beyond the maximum so established, shall constitute an unfair trade practice unless such tires which ex ceed these specifications shall be sold at a proportionately higher price which truly reflects their higher cost. The Code Authority upon request of any men1ber shall investigate and rule upon any disputed cases. Should the application of this Section in any particular case work an unjust hardship on any member o'f the Industry, such member may appeal to the Administrator who shall have power to grant such exception as justice may require.

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350 SEC. 24. Effective immediately upon the signing of this Code by the President no, member shall accept written or verbal orders, agree ments, or contracts for the sale of tires or tubes to any commercial and/ or national account, the effect of y,;hich is to guarantee prices on future deliveries. SEc. 25. Effectiv e immediately upon the signing of this Code by the President no member shall use terms of payment to national or commercial accounts exceeding the customary 10th proximo terms or renew or extend existing orders, agreements, or contracts as a subter fuge, in violation of Section 24. For purposes of interpretation of Section 24 orders delivered within thirty (30) days after date of order may be construed as "immediate delivery"; deliveries after such thirty (30) days' period shall be construed as "future delivery" and billed at prices in effect on delivery date. SEc. 26. No member shall offer for sale a rebuilt and/or retreaded tire without marking on the sidewall thereof a suitable design to be approved by the Code Authority. SEC. 27. Violation of any of the provisions of Article VI shall be considered an unfair trade practice and s ubject to the penalties of the Act. ARTICLE VII A. COMPLAINTS AND APPEAL SECTION 1. Any interested party shall have the right of complaint to the Code Authority and prompt hearing and decision thereon in respect to any m .atter arising under this Code. Such complaint must be fil ed in writing with the Code Authority within a reasonable period of time after the complaint arises. SEc. 2. Any interested party shall have the right of appeal to the Administrator under such procedure as he shall prescribe in respect to any decision, rule, regulation, order, finding , or omission to act by the Code Authority. SEc. 3. The Code Authority shall be specifically charged with the responsibility for proceeding against any member of the Industry who shall violate any provisions of this Code. ARTICLE VIII A. MONOPOLIES SECTION 1. No provision of this Code shall be interpreted or applied in such a manner as to permit monopolies, or monopolistic practices, permit or encourage unfair competition; or eliminate, oppres s, or discriminate again_st small enterprises. ARTICLE IX A. REVISIONS AND l\IODIFICATIONS SECTION 1. This Code and all the provisions thereof are expressly made subject to the right of the Pre ident, in accordance with the

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351 provisions of Subsection (b) of Section 10 of the National Industrial Recovery Act, from time to time to cancel or modify any order, approval, license, rule, or regulation i sued under Title I of said Act and specifically, but without limitation, to the right of the President to cancel or modify his approval of this Code or any conditions impo ed by him upon his approval thereof. SEc. 2. Such of the provi ions of this Code as are not required by the National Industrial Recovery Act to be included herein, may, with the approval of the President, be modified or eliminated as changed circumstances or experiences may indicate . SEc. 3. By presenting this Code the Industry and others as senting thereto are not consenting to any modification thereof; and each reserves the right to objec t independently or jointly to any modified Code. SEc. 4. If any member of the Industry is likewise engaged in part, in any other industry or trade, this Code shall apply only to such of the activities of said m ember as are comprehended within the Rubber Tire :Manufacturing Industry. SEC. 5. The provisions of this Code now or hereafter adopted with rega.rd to prices, discounts, deductions, allowances, extras, commissions, or methods and/or terms of sale shall not apply to direct export sales. Upon application to the Code Authority, any member of the Industry may secure exemption from such provisions of this Code in regard to sales in the course of export ( i . e., sales destined ultjmately for export) or sales of materials used in the manufacture of products for export. The tern1 ' ex port,, shall include, in addition to shipments to foreign countries, shipments to territories and possessions of the United States except Alaska. ARTICLE X A. ALTERATIONS AND Al\IENDl\fENTS SECTION. 1. Any addition, alteration, or amendment to this Code may be proposed by any member of the Code, and after receiving the approval of fifty-one percent of the members of the Code, providing such members represent at least fifty-one percent in vol un1e, shall be presented through the Code Authority to the Administrator for approval after such notice and hearing as he may prescribe. Provided, however, that any addition, alteration, or amendment which has received the approval of either a majority in number or in volume of the members of the Code, may, after due notice to all members of the Code, also be transmitted to the Administrator for his consideration. ARTICLE XI A. FURTHER RECOMMENDATIONS BY THE CODE AUTHORITY SECTION 1. Within sixty days after the effectiYe date of this Code, the Code Authority shall, after such negotiations as may be neces-•

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352 sary, make re c omm . endations to the Administrator for the equitable adoption of a uniform Standard Warranty by aU members of the Industry and all tire retaile r s, jobber s , ,-vholesalers, and s pecial brand distributors . In the. interim, no member shall change his present form of warrantv. SEc . 2. Sinc e the leasing of tires to taxicab and bus companies on a time o r mileage basi s i s a n e stablis hed practice in th0 Industry, the Code Authority shall rn.ake a complete study of this practice and submit recommendations t o the Administrator within ninety clays from the approval of this Code for the elimination of any unfair practices whi c h may exi s t in this fiel1d. . S E c . 3 . Upon completion o f the c o s t control plan outlined in Article V , the Code Authority shall make recomm endations to the Administrator for the implifi cat ion o f the present numbe r of lines of tires. SEc. 4. The Code Authority shall proce ed with a s urvey of the productive capacity of the Industry and submit recommendations to the Administrator not later than March 1, 1934, concerning the desirability of limiting the creation of additional productive capacity in the Industry. . SEC. 5. The Code Authority pledges itself to undertake immediately a study of s ea s onal fluctuations in production and make recom m endations t o the Industry designed to afford a greater stability of e m~loyment. SEC . 6. The Code Authority shall , in cooperation with the Code Authority to be set up for the Retail Rubber Tire and Battery Trade, ubmi t recommendations to the Administrator for the e stablishment of a joint committe e for the coordination of the Code for this Industry with that of the R et ail Rubbe r Tire and B attery Trade, with a , i ew to j oint c o n s iderat i o n and prope r determination of any common problem s whic h re l ate to t h e distribution of tires and tubes. SEc. 7: Within ninety days after the approval of this Code, the Cod e Authority with the approval of the memb ers o f the Code, in accordance with Article X , shall make re com. mendations to the A d m inistrator rega rding the establi hment of a complete op e n-price syste m f o r the Industry . In the m e antime, every m ember of the Industr y, w i thin thirty d ays afte r the approval of this Cod e, shall fil e wi t h t h e A dministrato r , or his d esignate d agent, for his ex clu s i ve informa t io n , in s uch n1anner and form a s he may r e quest, all p ric es, discounts , bonus es, terms, and condition of s ale to all c u s tom e r s, in orde r that the Administrator may b e fully informed a s to conditi ons i n t he Industry. ( a ) The reaft e r , n o m embe r shall sell any tires or tubes at prices l owe r o r a t d i scou nts or bonuse s greater or on terms or conditions more favorable than the prices, discounts , bonuse s, terms, and c ondi tion s fil e d as a f o r esa i d , unless he shall first file revi s ed prices, dis counts, b onuses, terms, a n d c on ditions with the Administrator to take eff ect in not l ess than ten days from date of filing.

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353 ARTICLE XII A. EFFECTIVE DATE AND TER)HNATION SE TION 1. This Code shall become effective, except as otherwise specified herein, on the fir t Monday after it shall have b een approved by the President of the United States. It shall continue in effect until J nne 16, 1935, or until suc h time prior thereto when the President sha ll, by proclamation, or the Congre s shall, by joint resolution, declare that the emergency recognized by Section 1 of the National Industrial Recovery Act has ended. Approved Code No. 174. Registry No. 807-1-0u. 0

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