Citation
Code of fair competition for the car advertising trade as approved on November 22, 1934

Material Information

Title:
Code of fair competition for the car advertising trade as approved on November 22, 1934
Portion of title:
Car advertising trade
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
11 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Advertising -- Automobiles -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry no. 1702-37."
General Note:
"Approved Code No. 532."

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:
004930850 ( ALEPH )
645086999 ( OCLC )

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Full Text


Approved Code No. 532


Registry No. 17102--37


NATIONAL RECOVERY ADMINISTRATION


CODE OF FAIR COMPETITION


FOR THE


AS APPROVED ON NOVEMBER 22, 1934


WE DO OUR PARf


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1984


CAR ADVERTISING TRADE
























This publication is for sale by the Superintendent of Documents, Government
Printing Office, WFashington, D. C., and by district offices of the Burean of
~Foreign and IDomestic Commerce.
DIISTRICT OFFICES OP THE DEPARTMENT OF COMMHERCBE
Atlanta, Ga.; 5041 Post Office Building.
Birmingham, Ala.: 257i Federal Building.
Boston, Mass.: 1801 Custombouse.
Buffalo, N. Y.: Chamber of Comlmerce Building.
Chzarleston, S. C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 17i06, 201 North WCells Street.
Oleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, MUich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
I~ndianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
K~ansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 4108 Federal Building.
Memphis, Tenn.: 229 Federal Building.
M~inneapolis, Minn.: 213 Federal Building.
Newf Orleans, La.: Room 225-A, Customhouse.
New York, N. Y.: 734 Custombouse.
Norfolk, Va,.: 406 East Plume Street.
Philadelphia, Pa.: 4221 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Orego.: 215 Newf Post Office Building.
St. Louis, MIo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, W~ash.: 80)9 Federal Office Building.












Approved Code No. 532


CODE OF FAIR COMPETITION
FOR THE

CAR ADVERTISING TRADE

As Approved on November 22, 1934


ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE CABR AIDVERTISING
TRADE
An application having been duly made pursuant to and in full
compliance with the provisions of Tiitle I of the Nat~ional Industrial
Recovery Act, approved June 16, 1933, for approval of a, Code of
Fair Competition for the Car Advertisinga Trade, and hearings hatv-
ing been duly held thereon and the annexedl report on said Code,
containing findings wsith respect thereto, having been made and
directed to the President:
NOWV, THEREFORE, on behalf of th~e President of the United
States, the National Industrial Recovery Board, pursuant to aut.hor-
ity vestedc in it, by Execut~ive Orders of the President, including
Executive Order No~. 6859, dated Septemnber 27, 1934, and otherwise,
does hereby incorp~oralte by preference said annexed report and does
find that said Code complies in all respects w~ith the pertinent pro-
visions a~nd will promote the policies and purposes of said Title of
said Act; and does hereby order that said Code of Fair Competition
be and it is hereby approved.
NATIONAL INDUSTRIAL; RECO1TRYT BOARD,
BI3y W;. A. HAR;RHInA, Aidmninistrantive O~f)Zer.
Approval recommended :
ROBIERT L. HouSTON,
D3ivi-sion Administr~ator.
WICsmSHcT Cow, D. C.,
Nove-mber P9, 1934.
996soD o-1 325-77---34----1 (1)














The PRESIDENT,
T~The WClhite HE~owie.
INTtODUCTIrON

SmR: This is the report of the National Industrial Recovery Board
on the applicaton for and th public hearing on a Code of Fair
Competition for the ear Advertising Trade. The public hearing
was conducted in Washington on January 5, 1934. Every person
who requested an appearance was freely heard in accordance with
statutory and regulatory requirements.
There are estimated to be twenty-six (26f) concerns in the Trade.
The group contacted all knowcn members, anld it is certain that
ninety-five per cent (95%~) of the business was directly represented.
There is no trade association within the Trade.

DEFINITION

The service performed byr the Trade proposing this Code is that
of displaying advertisements in or upon street cars, trucks, busses,
cars and stations of elevated railways, subways and steam or electric
railways.
ECONOMIC AND STA~TESTICAL MATERIAL

As stated, there are approximately 26 concerns in t.he Clar Adver-
tising Trade which in 1928 produced a business of $17i,000,000 a.nd
gavTe employment to 2,000 persons. i~ke all advertising services,
this Trade is controlled in direct ratio by the reaction of local and
national units of industry to general conditions. Until the setback
of 1929-33, this type ofl advertising was showing wider and more
constant uise by local and national advertisers. In 1933, the volume
of business was $12,000,000 and employment stood aEt1,100O; a decline
in volume of business of thirty per cent (30%i) and in employment
of ~fifty-five peir cent (55%51). Th Car Advertisinga Trade buys
large quantities of letter press and lithographed display cards so
the volume of car advertising business has direct appreciable effects
upon engraving and printing plants.
RESUMAnI OF CODE TOVISIONS

The Codte e~stablishes a forty (40) hour week for employees en-
gaged in work outside of th~e employer's shop. The group of em-
ployees, however, in the even~lt of necessity, may be permitted to work
an additional four (4) hours in any one (1) week: provided that in
such special case at least time a nd a half shall be paid for such hours
wor~kedl in excess of the maximumn. This allows sufficient latitude
(2)


REPORT TO THIE PRESIDENT








to employers when necessity for quick changes of advertising copy
arise. For offce employees, a work week of thirty-seven and one-
half (371/2) hours is provided. It is estimated that employment in
the Trade will increase fifteen per cent (15%) on the basis of the
same volume of business as was available in 1933.
The minimum rate of pay for all classes of employees is Fifteen
Dollars ($15.00) a week.
FINDINGS

The Deputy Administrator in his final report to the Board on said
Code having found as herein set forth and on the basis of all the
proceedings in this matter;
The National Industrial Recovery Board finds that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the trade groups, by
inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor and
by otherwise rehabilitating industry.
(b)es Said Trad normcalyied employs not more than 50,000 em-
ploees an isnotclasifed y the Board as a major industry.
(c) The Code as approved complies in all1 respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant group
is truly representative of the aforesaid Trade; and that said group
imposes no equitable restrictions on admission to membership
therein.
(d) The Code is not designed to and will not permit mionopolies'or
monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
smaUl enterprises and will not operate t~o discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, the Code has been approved.
For the Nlational Indlustrial Recovery Board:
WV. A. THRRDIrAN,
NOVEBER 2, 184. dministrati~ve Of)Zeer.












COD>E .OF' F~AIR COMPETITION FOR THE CAR
ADV7ERTISING TRADE

AnnIcLE I-FRPSE

To effect the policies of Title I of the ~National Industrial Recov-
ery Act, this Code is established as a Code of Fiair Competition for
the Car Advertising Trade, and its provisions shall be the standards
of fair competition for this Trade and shall be binding upon every
member thereof.
ARTICLE II-- EFINITIONS

SECTION 1. The term '"Car Advertising Trade ", as used herein
includes the production for others of display advertising and the
services incidental thereto, in. or upon street cars, trucks, busses, cars
and stations of elevated railways, subways, and steam or electric rail-
ways, and such related branches or subdivisions as may from time to
time be inc~ulued under the provisions of this Code.
SECON 2. The term. member of the Trrade as used herein
includes, but without limitation, any individual, partnership, associ-
at~ion, cor~por~ation or other form of enterprise engaged in the Trade,
either as an employer or on his or its ownl behalf.
SECTIOs 3. TIhe term employee as used herein includes any and
all persons engaged in thre Trade, however compensated, except a
member of the Trade.
SECTION 4. The term employer as used herein includes anyone
by whom such em~ploye~e is compensated or employed.
SECTION 5. The terms President ", "A~ct and "' Board as used
herein, means respectively the President of the United States, Title I
of the National Industrial Recovery Act, and the National Industrial
Recoveryr Board.
ARTCLE II[I--HOURS

SECTION 1. No employee engaged in work outside of the employer's
shop, except outside salesmen, shall be permitted to wFork in excess
of forty (40) hours in any one weekr or eight (8) hours in a.ny twen-
ty-four (24P) hour period (beginning at midnight) except as herein
otherwFise provided.
SECTION 2. NO Other employee (except outside salesmen and em-
p~loyees engaged in. a manag~enri or executive capacity who are paid
regularly Thirty-five Dollars ($35j.00) per week- or morec) shall be
permitted to workr in exces of thirty-seven and one-half (371/2) hours
per wFeek or eight (8) hours in any twfentyp-four (24) hour period.
SECTIIONi 3. In th~e event., h~owever, of emergency requirements for
changes in car advertising displays an employee may be permitted to
exceedi the max~imum hours herein estaoblishied t~o the extent of four
(4) additional hours in any one (1) week, but in any such special








case at least one and one-half times his normal rate of pay shall be
paild for all time worked in excess of the maximum hours provided
in this Article.
SECTION 4. No employee shall be permitted to workt more than six
(6) days in any seven (7) day period.
SECTION 5. No employer shall permit any employee to worki for
any time which when totaled with that performed for another em-
pleyer, or employers, exceeds the maximum permitted herein.
ARTICLE IV~-TVArGES

SECTION 1. N~o employee shall be paid at less than the rate of Fif-
teen Dollars ($15.00)) per week.
SECTION 2. This Article establishes a minimum rate of pay, which
shall apply, irrespective of whether an employee is compensated on
a time rate, piece-work, or other basis.
SECTION 3. Each employee (except one engaged in a supervisory,
managerial, executive or selling capacity, w~ho is paid Fifty Dollars
($50.00) per week or more) shall be paid a wage rate (whether paid
on a time rate, piece rate, bonus, commission or other basis) which
will yield at least the same wage for the shorter full-time week
herein established as that which he could have earned for the same
class of work for the longer full-time week as of June 16th, 1933.
Wage increases established under the President's Reemployment
Agreement shall at least be maintained.
SECTION 4i. Female employees performing substantially the same
work as male employees shall receive the same rates of p~ay as male
employees and when they displace men they shall be paid thie same
rate of pay as the mien they displace.
SECTIONT 5. A I~person whose ear~ninr capacity~ is limited because of
age, physical or mental handicap or other infirmity, m~ay be em-
ployved at light work at a wage below the minimum established by
this Code if the employer obtains from the State Authority desig-
natedl by the United States Depar~tment of Labor a certificate au-
thorizing his employment at such wages and for such hours as shall
be stated in the certificate. Each employer shall file monthly with
the Code Authority? a list of all such persons employed by him,
showing the wages paid to and the maximum hours of work for
such employee.
ArTICLE V GENERAL LBnon PRovIsioPIs

SECTION 1. Child Labor.-No person under sixteen (16) years of
age shall be employed in this Trade nor anyone under eighteen (18)
years of age at operations or occupations hazardous mn nature or
detrimental to health. The Codle Authorityv shall submiit to the
Board within ninety (90) days after the effective date of this Code
a list of such occupations. In any State, an employer shall be
deemed to have complied with this provision if he shall have on file
a certificate or permiit d-uly issued by the authority in such State
empowered to issue employment or age certificates or permiits show-
ing t~hat theP mpn~loyep is of the requi~red age.
SECTION 2. (a) Employvees shall have the right to organize and
bargain collectively through representatives of their own choosing,







and shall be free from the interference, restraint, or coercion of em-
ployers of labor, or their agents, in the designation of such represen-
tatives or in self-organization or in other concerted activities for
the purpose of collective bargaining or other mutual aid or protection.
(b) No emrploye~e and no one seeking employment shaUl be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing, an
(c) Empyloyers shall comply with the maximum hours of labor,
minimum rates of pay, and ohr conditions of employment approved
or plmscribed byb the President.
SECTION 3. Noemployer shall reclassify employees or duties of
occupations performed or engage mi any other subterfuge so as to
defeat th purposes or provisions of the Act or of this Code.
SECTON 4. Everyr employer shall provide for the safety and health
of employees during the hours and at the places of their employment.
Standards for sa fety and health shall be submitted by the Code
AFuthority to the Board within six months after the effective date of
the C'ode.
SECTION 5. No p~rovision in this Code shall supersede any State or
Federal law which imposes on employers more stringent require-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general working conditions, or insurance, or fire
protection, than are imposed by this Code.
SECTION 6. If any employer of labor in this Trade is also an em-
ployer of labor ini any other trade, the provisions of this Code shall
appgy to and affect only that part of the business which is a part of
te'L Car Advertising Trade'
Scejnoh 7. No employees shall be dismissed, demotedi or otherwise
discriminated against by reason of making a complaint or giving
evidence wit respect to an alleged violation of this Code.
SECTION 8. No employee who has been regularly employed in any
one establishment for nine (9) weekrs or more shall be discharged on
less th-an one w~eekr's notice.
SECTION 9. All employers shall post and keep posted copies of the
full lazbor provisions of this Code in conspicuous places readily ac-
cessible to all employees in the normal course of their customary
occupations. Every member of the Trade. shall comply with all
rules and regulations relative to the posting of provisions of Codes
of 1Fair Compeitition which may from tim~e to time be prescribed by
the Board.

ARUICLE VI---ORGNam~Izrow, POWERS AND DrrrlES OFEi THrE CODE
Anr ourrIY

SECTION 1. Further to e~ffectuate the policies of the Act, a Code
Authority is hereby? established anrd shall. be the agency for the
Administration of this Codec and shall have such powers and duties3
as are prescribedl in this Code.
.SECTION 2. The Code A~uthority shall consist of not more t~hrf
five (5) individuals or such other number as may be approvedl from
time to time by the Board, to be selected as hereinafter set forth;
andl of such additional members without vote, to be known as Ad-







ministration members, to be appointed by the Board to serve for
such terms as it may specify.
SECTION 3. The Code Committee of the Car Advertising Trade
shall arrange, subject to the approval of a, fair and equitable plan
and method therefore by the Board, for the nomination and election
of the Code Authority within 60 days from the effective date of
this Code. Each member of the Trade shall have one (1) vote in
the nomination and election of the trade members of the Code
Authority.
SECTION 4. Trade members of t~he Code Authority shall be elected
to serve until May 31, 1935 or until their successors are elected.
Until the Code Authority is elected, the Code Committee shall serve
as Code Authority provided that in no event shall it serve beyond
60 days from the effective date of this Code. If the Code Authority
shall not be elected within such period, the Board shall appoint a
temporary Code Authority of five (5) members to serve until the
election of the Code Authority by the trade.
SECrlON 5. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Au-
thority shall (1) impose no inequitable restrictions on membership,
and (2) submit to the Board true copies of its articles of association,
by-laws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities as the Board may deem necessary to effectuate the
purposes of the Act.
SECTION 6. In order that the Code Authority shall at all times be
truly representative of the Trade and in other respects comply with
the provisions of thle Act, the Board, may prescribe. such hearings
as it mayT deem proper; and thereafter if it shall find that thie Code
Authority is not truly representative or does not in other respects
comply with the provisions of the Act, may require an appropriate
modification of the Code Authority.
SECTION 7. Nothing contained in this Code shall constitute the
members of the Code ALuthority partners for any purpose.. Nor
shall any memuber of the Code Authority be liable in any manner to
anyone for any act of any other member, officer, agent or employee
of the Code Authority. Nor shall any member of the Code Au-
thority, exercising reasonable diligence in the conduct of his duties
hereunder, be liable to anyone for any action or omission to act
under this Code, except for his own wilful malfeasance or non-
feasance.
SECTION 8. If the Board shall at any time determine that any
action of a Code Authority or any agency thereof may be unfair or
unjust or contrary to the public interest, the Board mlay require
that such action be suspended to afford an opportunity for Investiga-
tion of the merits of such action and further consideration by such
Code Authority or agency pending final action which shall not be
effective unless the Board approves or unless it shall fail to dlis-
approve after thirty (30) days' notice to it of intention to proceed
with such action in its original or mnodified for~m.
SECTION 9. PowerCS a~nd Duties.--Subject to such rules and regula-
tions as may be issued by the Board, the Code Authority shall have
the following powers a~nd duties, in addition to those authorized by
other provisions of this Code:








(a) To insure the execution of the provisions of this Code and to
provide for thre compliance of the Trade with the provisions of the
Ahct.
() To adopt by-laws and rules and regulations for its procedure.
() To obtain from members of the Trade such information and
reports as are required for the administration of the Code. In addi-
tion to information required to be submit~tedl to t~he Code Authority,
members of the Trade, subject to this Code shall furnish such stat~isti-
cal information as the B~oard mlay deem necessary for the purposes
recited in Section 3 (a) of the Act to such Federall and State Agencies
as it may designate; provided that nothing in this Code shall relieve
any member of the Trade of any existing obligations to furnish
reports to any Governmental agency. No individual report shall be
disclosed to any other member of the Trade or any other party
except to such other Governmental agencies as may be directed by
the Board.
(d) To use such trade associations and other agenlcies as it deems
proper for the carrying out of any of its activities provided for
hierein, provided that nothing herein shall relieve the Clode Authority
of its duties or responsibilities under this Code and that such trade
associations and agencies shall at all times be subject to and comply
with thne provisions hereof.
(e) To make recommendations to the Board for the coordination
of the Administration of this Code with such other Codes, if any, as
mag be related to or affect members of the Trade.
SECTION 10. It being found necessary, mn order to support the
administration of this Code, to effectuate the policy of the Act and
to maintain the standards of fair competition established hereunder,
the Code ~Authority- is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligrat~ions out
of funds which shall be held in trust for the purposes obf the Code
and raised as hereinafter provided;
(b) To submit to th~e Board for its approval, subject to such notice
and opportunity to be heard as it may deem necesary: (1) an item-
ized budget of its estimated expenses for the foregomg~ purposes,
and (2) an eqluitab~le basis upon which the -funds .necessary to support
such budget shall be contributed by all members of the Trade entitled
to the benefits accruing from the maintenance. of such standards, and
the administration thereof ;
(c) After such budget and basis of contribution have been ap-
proved by the Board, to determine and collect equitable contribu-
tions as above set forth by all members of thle T~rade, and to that
end, if necessary, to institute legal proceedings therefor in its own
name.
SECTION 11. Each member of the Trade shall pay his or its equi-
table contribution to the exp~ense~s of the maintenance of the Code
Authority determined as hereinabove provided, anld subject to rules
and regulattions thlereto issued by the Board. Only members of the.
Trade! coplyinrg with the Code and c~ontribut~inga to the expenses of
its administration as hereinabove provided, unless duly exempted
from making such contributions, shall be entitled to participate in
the selection of members of the Code Authlorityr or to receive the bene-







fits of any of its voluntary activities or to make use of any emblem
of the National Recovery Administration.
SEC~I[Ox 12. The Code Authority shall neither incur nor pay any
obligation substantially in excess of the amount thereof as estimated
in its approved budget, and shall in no event exceed the total amount
contained in the approved budget, except upon approval of the
Board; and no subsequent budget shall contain any deficiency item
for expenditures in excess of prior budget estimates except those
which the Board shall have so approved.
SECTION 13. The Code Authority is authorized to recommend to
the Board any action or measures deemed advisable, including fur-
ther fair trade practice provisions to govern members of the Trade
in their relations with each other or with other trades; measures
for industrial planning, and stabilization of employment; and in-
cluding modifications of this Code which shall become effective as
part hereof upon approval by the Board after such notice and
hearing, if any, as it may specify.
SECTION 14. The Code Authority is authorized to appoint a Trade
Practice Committee which shall meet with the Trade Pract.ice Com-
mittees appointed under such other Codes as may be related to the
Trade for the purpose of formulating fair trade practices to gov-
ern the relationships between employers under this Code and under
such other Codes to the end that such fair trade practices may be
proposed t~o the Board as amendments to this Code and such other
Codes.
SECTION 15. The Code Authority is authorized to provide appro-
priate facilities for arbitrattion, and subject to the approval of the
Board, to prescribe rules of procedure and rules to effect. compliance
with awards and determinations.
SECTION 16. There Shall be established a Labor C~omplaints Com-
mittee for the Trade, which shall consist of an equal number of rep-
resentartives of employers and employees and an impartial chair-
man. The Board shall appoint such impartial chairman upon the
failure of the committee to select one by agcreement within 30 days
from the establishment of the Committee. If no truly ,rt~eprsnta-
tive labor organization exists, the employee membersofscbor
may be appointed by the Board. The employer representatives
shall be chosen by the Code Authority. Such committee shall deal
with complaints.c rela~ting to labor in accordance with any rules and
regulations issued from time to time by the Board. The Labor Com-
plaints Committee may establish such divisional, regional, and local
industrial adjustment agencies as it may deem desirable, each of
which shall be constituted in likse manner as the Labor Complaints
Com mi ttee.
ARTICLE VII -TRADE P~acrics RULES

RULE 1. ZWGCCuratd SAdfertfi8/N.--RO member o~f the Trade shall
publish advertising as to his own business (whether printed, radio,
display or of any other nature), which is misleading or-inaccurate
in any material particular, nor shaUl any member in any wa.y mis-
represent any goods (including but without limitation its use, trade-
mark, grade, quality, quantity, origin, size, substance, character,
nature, finish, material, content or preparation) or credit terms,








values, policies, services, or the nature or form of the business
conducted.
Russ 2. False Bilin g.--No member of the Trade shall knowingly
withold froma or in~e~rt in any quotation or invoice any statement
that makles it inaccurate in anly material particular.
RULE 3. LDefamation.- NO member of the Trade shall defame a
competitor by falselyl7 imputing to his dishonorable conduct, inabil-
ity to perform contracts, questionable credit standing, or by other
false representation, or by falsely disparaging the grade or quality
of .his goods or services.
Rm;E 4. Th/T&Gl& Of Law Sucits.--No member of the Trade shall
publish or circulate unjustified or unwarranted threats of legal pro-
ceedlings which tend to or have the effect of harassing competitors
or intimidating their customers.
RULE 5. Br1ibing Em1~iployees.--No member of the Trade shall give,
p~er~mit to be given, or offer to give, anything of value for the pur-
pose of influencing or rewarding the action of any employee, agent,
or representative of another in relation to the business of the em-
ployer of such employee, the principal of such agent or the repre-
sented party, without the knowledge of such employer, p~rincipal
or party. This provision shall not be constructed to prohibit fe
and general distribution of articles commonly used for advertising
except so far as such articles are actually used for commercial
bribery as hereinabove defined.
]Rurrr 6. Inzducinzg Breach of Elcisting Conztracts.--No mrember of
the T~rade shall wilfully induce or attempt to induce the breach of
existing contracts between. competitors anld their customers by anyT
false or deceptive maearns, or interfere with or obstruct the perform-
ance of anly such contractual duties or services by any such means,
with the purpose and effect of hampering, injuring or embarrassmg~
competitors in their business.
Roran '7. NTo member of the Trade shall join or participate -with
other members of the Trade who with. such. member constitute a
substantial numbr of members of the Trade or who together con-
trol a substantial percent of the business in the Trade, in any trans-
action known in law as a black list, including any practice or device
which accomplishes the purpose of a black list.
IRun; 8. NTiio mem~nber of the! Trade shall aid anyr customer through
the publications of any advertising or sales copy inl any display
within the control of the Trade to violate the fair trade practices
or other provisions in any approved Code of Fair Competit~ion for
any trade or industry of which any suchn customer is a member.
ARTICLE7IIT MODIFIC3ATION
SECTION 1. This Code and all t~he provisions thereof are expressly
madle subject to the right of the ]President, in accordance with the
provisions of subsection (b) of Section 10 of t~he Act, fromt time to
time to cancel or modify anly Order, appr~loval, license, rule, or
regulation issued under Title I: of said _Act.
SECTION 2. Such of the provisions of this Code as are not required
to be! included herein by- the Act mnay, with the approval of the
Board, be modified or eliminated in such manner as may be indi-
cazted by the needs of the public, by changes in circumstances, or by'








experience. All the provisions of this Code, unless so modified or
eliminated, shall remain in effect until June 16, 1935.

AnnIcLE 11--AfONOPOLIES

No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discrinunate
against small enterprises.
aARCLE XT~-PRICE INCREASES

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

This Code shall become effective on the second MSonday after its
approval by the President.
Approved Code No. 532.
Registry No. 1702-~37.




UNIVE11111~RSIINIT O F FLOID
3 1262 08338 113




Full Text

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Approved Code No. 532 Registry No. 1702-37 NATIONAL RECOVERY ADMINISTRATION CODE OF FAIR COMPETITION FOR THE CAR ADVERTISING TRADE AS APPROVED ON NOVEMBER 22, 1934 WE DO OUR PART . n _ __., ' u ---.---'A~ • u.8. oe,oMTOIW UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 19H For sale by the Superintendent of Documents, Washington, D. C. • • • • • • • • Price G cenls

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This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D. 0., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo, N. Y.: Chamber of Commerce Building. Charleston, S. C.: Chamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. Cleveland, Ohio : Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. Detroit, Mich.: 801 First. National Bank Building. Houston, Tex. : Chamber of Commerce Building. Indianapolis, Ind. : Chamber of Commerce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas City, Mo.: 1028 Baltimore Avenue. Los Angeles, Calif.: 116.3 South Broadway. Louisville, Ky. : 408 F ederal Building. Memphis, T e nn. : 229 Federal Building. Minneapolis, Minn. : 213 Federal Building. New Orleans, La.: Room 225-A, Customhouse. New York, N. Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. Philadelphia, Pa. : 422 Commercial Trust Building. Pittsburgh, Pa. : Chamber of Commerce Building. Portland, Oreg.: 215 New Post Office Building. St. Louis, Mo. : 506 Olive Street. San Franc isco , Calif.: 310 Customhouse. Seattle, Was h , : 809 Federal Office Building.

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Approved Code No. 532 CODE OF FAIR COMPETITION FOR THE CAR ADVERTISING TRADE As Approved on November 22, 1934 ORDER APPROVING CODE OF FAIR COMPETITION FOR THE CAR ADVERTISING TRADE An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for approval of a Code of Fair Competition for the Car Advertising Trade, and hearings having been duly held thereon and the annexed report on said Code, containing findings with re spec t thereto, having been made and directed to the President: NOW, THEREFORE, on behalf of the President of the United States, the National Industrial Recovery Board, pursuant to authority vested in it, by Executive Orders of the President, including Executive Order No. 6859, dated September 27, 1934, and otherwise, does hereby incorporate by reference said annexed report and does find that said Code comp lies in all respects with the pertinent provisions and will promote the policies and purposes of said Title of said Act; and does hereby order that said Code of Fair Competition be and it is hereby approved. NATIONAL INDUSTRIAL REOOVERY BOARD, By "\V. A. HARRIMAN, Adtministrative Officer. Approval re-commended: ROBERT L. HOUSTON' Division Administrator. w ASHINGTON, D. c., N ov ~mbe r 9293, 1934. 98969 -1325-77-34-1 (1)

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REPORT TO THE PRESIDENT The PRESIDENT, The White House.. INTRODUCTION Srn: This is the report of the National Industrial Recovery Board on the application for, and the public hearing on a Code of Fair Competition for the Car Advertising Trade. The public hearing was conducted in Washington on January 5, 1934. Every person who requested an appearance was freely heard in accordance with statutory and regulatory requirements. There are estimated to be twenty-six (2t>) concerns in the Trade. The group contacted all known members, and it is certain that ninety-five per cent (95%) of the business was directly rep-resented. There is no trade association within the Trade. DEFINITION The service performed by the Trade proposing this Code is that of displaying advertisements in or upon street cars, trucks, busses, cars and stations of elevated railways, subways and steam or electric railways. ECONOMIC AND STATISTIC.AL MATERIAL As stated, there are approximately 26 concerns in the Car Advertising Trade which in 1928 produced a business of $17,000,000 and gave employment to 2,000 persons. Like all advertising services, this Trade is controlled in direct ratio by the reaction of local and national units of industry to general conditions. Until the setback of 1929-33, this type of advertising was showing wider and more constant use by local and national advertisers. In 1933, the volume of business was $12,000 , 000 and employment stood at 1,100; a decline in volume of busine s s of thirty p e r cent (30%) and in employment of fifty-five per cent ( 55%). The Car Advertising Trade buys large quantities of letter press and lithographed display cards so the volume of car advertising business has direct appreciable effects upon engraving and printing plants. RESUME OF CODE PROVISIONS The Code establishes a forty ( 40) hour week for employees en gag ed in work outside of the e mployer's shop. The group of em ployees, however, in the event of necessity, may be p ermitted to work an additional four ( 4) hours in any one ( 1) w ee k provided that in such special case at least time and a half shall be paid for such hours worked in excess of the maximum. This allows sufficient latitude (2)

PAGE 5

3 to employers when necessity for quick changes of advertising copy arise. For office employees, a work week of thirty-se ven and onehalf (37) hours is provided. It is estimated that employment in the Trade will increase fifteen per cent ( 15 % ) on the basis of the same volume of business as was available in 1933. The minimum rate of pay for all classes of employees is Fifteen Dollars ($15.00) a week. FINDINGS The Deputy Administrator in his final report to the Board on said Code having found as herein set forth and on the bas is of all the proceedings in this matter ; The National Industrial Recovery Board finds that: (a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial R ecovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof and will provide for-the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of indus tries, by avoiding undue restriction of production ( except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor and by otherwise rehabilitating industry. (b) Said Trade normally employs not more than 50,000 em ployees and is not classified by the Board as a major industry. (c) The Code as approved complies in all resp e cts with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subs ection (a) of S ection 7, and Subsection (b) of Section 10 thereof; and tha.t the applicant group is truly representative of the aforesaid Trade; and that said group imposes no inequitable restrictions on admission to membership therein. ( d) The Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. (f) Those engaged in other steps of the economic proce ss have not been deprived of the right to be heard prior to approval of said Code. For these r easons, the Code has been approved. For the National Industrial Recovery Board: W. A. ILumIMAN, NOVEMBER 22, 1934. Administrative Offic e r.

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CODE OF FAIR COMPETITION FOR THE CAR ADVERTISING TRADE ARTICLE I-PURPOSES To effect the policies of Title I of the National Industrial Recovery Act, this Code is established as a Code of Fair Competition for the Car Advertising Trade, and its provisions shall be the standards of fair competition for this Trade and shall be binding upon every member thereof. ARTICLE II-DEFINITIONS SECTION 1. The term "Car Advertising Trade", as used herein includes the production for others of display advertising and the services incidental thereto, in or upon street cars, trucks, busses, cars and stations of elevated railways, subways, and steam or electric railways, and such related branches or subdivisions as may from time to time be included under the provisions of this Code. SECTION 2. The term " member of the Trade " as used herein includes, but without limitation, any individual, partnership, associ ation, corporation or other form of enterprise engaged in the Trade, either as an employer or on his or its own behalf. SECTION 3. The term "employee" as used herein includes any and all persons engaged in the Trade, however compensated, except a member of the Trade. SECTION 4. The tenn "employer" as used herein includes anyone by whom such employee is compensated or employed. SECTION 5. The tern1s " President ", "Act " and " Board " as used herein, means respectively the President of the United States, Title I of the National Industrial R e covery Act, and the National Industrial Recovery Board. ARTICLE III-HOURS SECTION 1. No employee engaged in work outside of the employer's shop, except outside salesmen, shall be permitted to work in excess of forty ( 40) hours in any one week or eight ( 8) hours in any twenty-four (24) hour period (beginning at midnight) except as herein otherwise provided. SECTION 2. No other employee ( except outside salesmen and em ployees engaged in a managerial or executive capacity who are paid regularly Thirty-five Dollars ($35.00) per week or more) shall be permitted to work in exces of thirty-seven and one-half (37) hours per week or eight (8) hours in any twenty-four (24) hour period. SECTION 3. In the event, however, of emergency requirements for change s in car advertising displays an employee may b e permitted to e xc e e d the maximum hours h erein established to the extent of : four ( 4) additional hours in any one ( 1) we 2 k, but in any s u c h special (4)

PAGE 7

5 case at least one and one-half times his normal rate of pay shall be paid for all time worked in excess of the maximum hours provided in this Article. SECTION 4. No employee shall be permitted to work more than six (6) days in any seven (7) day period. SECTION 5. No employer shall permit any employee to work for any time which when totaled with that performed for another em pl0yer, or emp loy ers, exceeds the maximum permitted herein. ARTICLE IV-WAGES SECTION 1. No emp loyee shall be paid at l ess than the rate of Fifteen Dollars ($15.00) per weBk. SECTION 2. This Article establishes a minimum rate of pay, which shall apply, irrespective 0 whether an employ ee is compensated on a time rate, piece-work, or other basis. SECTION 3. Each emp loyee ( except one engaged in a supervisory, managerial, executive or selling capacity, who is paid Fifty Dollars ($50.00) per week or more) shall be paid a wage rate ( whether paid on a time rate, piece rate, bonus, commission or other basis) which will yield at lea s t the same wage for the shorter full-time week herein established as that which he could have earned for the same class of work for the longer full-time week as of June 16th, 1933. Wage increases established under the President's Reemployment Agreement shall at least be maintained. SECTION 4. Female employees performing substantially the same work as male employees shall r ece ive the same rates of pay as male employees and when they displace men they shall be paid the same rate of pay as the men they displace. SECTION 5. A person whose earning capacity is limited because of age, physical or mental handicap or other infirmity, may be employe d at light work at a wage below the minimum established by this Code if the employer obtains from the State Authority desjgnated by the Unite d States Department of Labor a certificate authorizing h is employmen t at s u c h wages and for s uch hours as shall be stated in the certificate. Each employer shall file monthly with the Code Authority a lis t of all s u c h persons employed by him, showing the wages paid to and the maximum hours of work for such em ploye e . ARTICLE V-GENERAL L A B O R PROVISIONS SE TION 1. 0 hild Lab01~.-N o person under sixteen ( 16) years of age shall be employed in this Trade nor anyone unde r eighteen (18) years of age at operations or occupations hazardous in nature or detrimental to h ealth. The Code Authority shall submit to the Board within ninety (90) days after the effective date of this Code a list 0 suc h occupations. In any State, an employer shall be de emed to ha, e complied with this provis ion if he shall have on file a certificate or permit duly i ss ued by the authority in such State empowered to i ss ue emp lo y m ent or age certificates or permits showing that the emp lo yee i s of the r equired age. SECTION 2. (a) Employees shall have the right to organize and bargain collectively through r epresentatives of their own choosing,

PAGE 8

6 and shall be free from the interference, restraint, or coercion of em ployers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. (b) No emp lo yee and no one seeking employment shall be required as a condition of employment to join any company union or to refrain from j oining, organizing, or assisting a labor organization of his own choosing, and ( c) Employers shall comply with the maximum. hours of labor, minimum rates of pay, and other conditions of employment approved or prescribed by the Presiden t. SECTION 3. No employe r shall reclassify employees or duties of occupations performed or engage in any other subterfuge so as to defeat the purposes or provisions of the Act or of this Code. SECTION 4. Every employer shall provide for the safety and health of employ ees during the hours and at the places of their employment. Standards for safety and health shall be submitted by the Code Authority to the Board within six months after the effective date of the Code. SECTION 5. No provision in this Code shall supersede any State or Federal law which imposes on employers more stringent requirements as to age of employees, wages, hours of work, or as to safety, health, sanitary or general working conditions, or insurance, or fire protection, than are imposed by this Code. SECTION 6. If any employer of labor in this Trade is also an employer of labor in any other trade, the provisions o:f this Code shall apply to and affect only that part of the business which is a part of the "Car Advertising Trade'. SECTION 7. No emp loyee shall be dismissed, demoted or otherwise discriminated against by reason of making a complaint or giving evidence with respect to an alleged violation of this Code. SECTION 8. No employee who has been regularly employed in any one establishment for nine ( 9) weeks or more shall be discharged on l ess than one week's notice. SECTION 9. All emp lo yers shall post and ke e p poste d copies of the full labor provisions of this Code in conspicuous places readily ac cessible to all employees in the normal course of their customary occupations. Every member of the Trade shall comply with all rdes and regulations relative to the posting of provisions of Codes of Fair Competition which may from time to time be prescribed by the Board. ARTICLE VI-ORGANIZATION, POWERS AND DUTIES OF THE CODE AUTHORITY SECTION 1. Furthe r to e ffectuate the policies of the Act, a Code Authority i s hereby established and shall be the agency for the Administration of this Code and shall have suc h powers and duties as are prescribed in this Code. SECTION 2. The Code Authority shall consist of not more th~~ fiv e ( 5) individuals or such other number as may be approved from time to time by the Board, to be selected as hereinafter set forth ; and of such additional members without vote, to be known as Ad-

PAGE 9

7 ministration members, to be appointed by the Board to serve for such terms as it may s pecify. SECTION 3. The Code Committee of the Car Advertising Trade shall arrange, subject to the approval of a fair and equitable plan and method therefor by the Board, for the nomination and election of the Code Authority within 60 days from the effective date ?I this Code. Eac h member of the Trade shall have one (1) vote m the nomination and election of the trade membe r s of the Code Authority. SECTION 4. Trade members of the Code Authority shall be elected to serve until May 31, 1935 or until their successors are elected. Until the Code Authority is ele cted, the Code Committee shall serve as Code Authority provided that in no event shall it se r ve beyond 60 days from the effective date of this Code. If the Code Authority shall not be elected within such period, the Board shall appoint a temporary Code Authority of five ( 5) members to serve until the election of the Code Authority by the trade. SECTION 5. Each trade or industria l association directly or indirectly participating in the selection or activities of the Code Authority shall (1) impose no ine quitable restrict ions on membership, and (2) submit to the Board true copies of its articles of association, by laws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, and activities as the Board may deem necessary to effectuate the purposes of the Act. SECTION 6. In order that the Code Authority shall at all times be truly representative of the Trade and in other respects comply with the provisions of the Act, the Board, may prescribe such hearings as it may deem proper; and thereafter if it shall find that the Code Authority is not truly representative or does not in other respects comply with the provisions of the Act, may require an appropriate modification of the Code Authority. SECTION 7. Nothing contained in this Code shall constitute the members of the Code Authority partners for any purpose. Nor shall any member of the Code Authority be liable in any manner to anyone for any act of any other member , officer, agent or employee of the Code Authority. Nor shall any member of the Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under this Code, except for his own wilful malfeasance or non feasance. SECTION 8. If the Board shall at any time determine that any action of a Code Authority or any agency thereof may be unfair or unjust or contrary to the public interest, the Board may require that such action be suspended to afford an opportunity for investiga tion of the merits of such action and further consideration by such Code Authority or agency pending final action which shall n o t be effective unless the Board approves or unless it shall fail to disapprove after thirty (30) days' notice to it of intention to proceed with such action in its original or modified form. SECTIO 9. Pow ers and Duties.-Subject t o such rules and regulations as may be issued by the Board, the Code Authority shall have the following powers and duties, in addition to those authorized by other provisions of this Code:

PAGE 10

8 (a) To insure the execution of the provisi ons of this Code and to provide f or the compliance of the Trade with the provisions of the .A.ct. (b) To adopt by-laws and rules and re gulations for its procedure. ( c) To obtain from members of the Trade suc h information and reports as are r equi r ed for the administration of the Code. In addition to information required to b e submitted to the Code Authority, members of the Trade sub ject to this Code shall furnish s uch statistical information as the Board may deem necessary for the purposes recited in Section 3 (a) of the Act to such Federal and State Agencies as it may designate; provided that nothing in this Code shall relieve any member of the Trade of any existing obligations to furnish reports to any Governm ental agency. No individual report shall be disclosed to any other member of the Trade or any other party except to such other Governmental agencies as may be directed by the Board. ( d) To u se s uch trade associations and other agencies as it deems proper for the carrying out of any of its activities provided for herein, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Code and that s uch trade associations and agencies shall at all times be subject to and comply with the provisions hereof . ( e) To make r ecommendatio ns to the Board for the coordination of the Administration of this Code with such other Codes, if any, as may be r elated to or affect members of the Trade. SECTION 10. It b eing found n ecessary, in order to support the administration of this Code, to effectuate the policy of the Act and to maintain the standards of f ai r competition established hereunder, the Code Authority is authorized: (a) To incur such reasonable obligati ons as are n ecessary and proper for the foregoing purpos es and to meet s uch obligations out of funds which shall be held in trust for the purposes of the Code and raised as hereinafter provided; (b) To submit to the Board for its approval, subject to such notice and opportunity to be heard as it may deem necessary: (1) an item iz ed budge t of its estimated expenses for the foregoing purposes, and (2) an equitable basis upon whic h the funds necessary to support such budget shall be contributed by all member~ of the Trade entitled to the benefits accruing from the maintenance of s uch standards, and the administration thereof; ( c ) After such budget and basis of contributio n h ave been approved by the Board, to determine and collect equitable contributions as above set forth by all members of the Trade, and to that end, if necessary, to institute l ega l proceedings therefor in its own name. SECTION 11. Each membe r of the Trade shall pay his or its equitable contribution to the expenses of the maintenance of the Code Authority determined as hereinabove provided, and subjec t to rules and regulations thereto issued by the Board. Only members of the Trade con1plying with the Code and contributing to the expenses of its administration as hereinabove provided, unless duly exempted from making such contrib utions, shall be entitled to participate in the selection of members of the Code Authority or to receiv e the bene-

PAGE 11

9 fits of any of its voluntary activities or to make use of any emblem of the National Recovery Administration. SECTION 12. The Code Authority shall neither incur nor pay any obligation substantially in e x cess of the amount thereof as estimated in its approved budget, and shall in no event exce e d the total amount contained in the approved budget, e x c ept upon approval of the Board; and no subs equent budge t shall cont ain any deficiency item for expenditures in excess of prior budge t e stimates ex cept those which the Board shall have so approve d. SECTION 13. The Code Authority is authorized to recomm end to the Board any action or measures de e med advis able, including furthe r fair trade practice provis ions to govern members of the Trade in their relations with each other or with othe r trades; measures for industrial planning, and stabilization of emplo y m ent; and including modifications of this Code which shall becom e eff ec tive as part hereof upon approval by the Board after such notice and hearing, if any, as it may specify. SECTION 14. The Code Authority is authorize d to appoint a Trade Practice Committee which shall meet with the Trade Practice Com mittees appointed under su c h other Codes as may b e related to the Trade for the purpose of formulating fair trade practices to govern the relationships betwe e n employers under this Code and under such other Codes to the end that s uch fair trade practices may be proposed to the Board as amendments to this Code and such other Codes. SECTION 15. The Code Authority is authorized to provide appropriate facilities for arbitration, and subject to the approval of the Board, to prescribe rule s of J?rocedure and rules to effect c ompli a nce with awards and determinat10n s . SECTION 16. There shall be established a Labor Complaints Committee for the Trade, which shall consist of an equal number of representatives of employers and employees and an impartial chairman. The Board sh all appoint such impartial chairman upon the failure of the committee to select one by agreement within 30 days from the establishment of the Committee. If no truly representative labor organization exists, the employee members of such b oard may be appointed by the Board. The employer representati ves 8hall be chosen by the Code Authority. Such committe e shall dea l with complaints relating to labor in accordance with any rules and regulations is s ued from time to time by the Board. The Labor Complaints Committee may establish such divis ional, region a l, and lo c al industrial adjustment age ncies as it may d eem desirable, each of which shall be constituted in like manne r as the Labor Complaints Committee. ARTICLE VII-TRADE PRACTICE RULES RUI.E 1. I nac cu r at e Advertising.-No member of the Trade shall pub l is h advertising a s to his own business (whethe r printed, rad io, dis p lay or of any oth e r nature), which is misleading or ina ccur ate in any m ateria l particular, nor shall any member in any way mis r epresen t any good s (including but without limitation its u se, trade mark grade, qu a lity, quantity, origin, size, substance, ch a r a c ter, n a ture , fini sh, material, content or preparation) or credit t e rms,

PAGE 12

10 values, policies, services, or the nature or form. of the business conducted. RUI.E 2. False Billing.-No member of the Trade shall knowingly withhold from or insert in any quotation or invoice any statement that makes it inaccurate in any material particular. RULE 3. Def amation.-N o member of the Trade shall defame a competitor by falsely imputing to his dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representation, or by falsely disparaging the grade or quality of. his goods or services. RULE 4. Threats of Law Su,its.-N o member of the Trade shall publish or circulate unjustifi e d or unwarranted threats of legal proceedings which tend to or have the effect of harassing competitors or intimidating their customers. RUI.E 5. Bribing Employees.-No member of the Trade shall give, permit to be given, or offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent, or representative of another in relation to the business of the employer 0 such employee, the principal of such agent or the represented party, without the knowledge of such employer, principal or party. This prov ision shall not be construed to prohibit free and general distribution of articles commonly used for advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. RUI.E 6. I nducing Breac h of Ewuting Oontracts.-No member of the Trade shall wilfully induce or attempt to induce the breach of existing contracts between competitors and their customers by any false or deceptive means, or interfere with or obstruct the performance of any such contractual duties or services by any such means, with the purpose and effect of hampering, injuring or embarrassing competitors in their busin ess . RUI.E 7. No member of the Trade shall join or participate with othe r members of the Trade who with such member constitute a substantial number of members of the Trade or who together control a substantial percent of the business in the Trade, in any transaction known in law as a black list, including any practice or device which accomplishes the purpose of a black list. RUI,E 8. No member of the Trade shall aid any customer through the publication of any advertising or sales copy in any display within the control of the Trade to violate the fair trade practices or other provisions in any approved Code of Fair Competition for any trade or industry of which any suc h customer is a member. ARTICLE VIII-MonIFIOATION SECTION 1. This Code and all the provisions thereof are expressly made s ubj ect to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the Act, from time to time to cancel or modify any Order, approval, license, rule, or regulation issued under Title I of said Act. SECTION 2. Such of the provisions of this Code as are not r equire d to be included herein by the Act may, with the approval of the Board, be modified or eliminated in such manner as may be indicated by the needs of the public, by changes in circumstances, or by

PAGE 13

11 experience. All the provisions of this Code, unless so modified or eliminated, shall remain in effect until June 16, 1935. ARTICLE IX-MONOPOLIES No provision of this Code shall be so applied as to permit monopo lies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. ARTICLE X-PRICE INCREASES Whereas the policy of the Act to increase real purchasing power will be made more difficult of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual cost should be delayed, and when made such increases should, so far as possible, be limited to actual additional increases in the seller's costs. ARTICLE XI-EFFECTIVE DATE This Code shall become effective on the second Monday after its approval by the President. Approved Code No. 532. Registry No. 1702-37. 0 •