Citation
Code of fair competition for the lumber and timber products industry as approved on August 19, 1933 by President Roosevelt

Material Information

Title:
Code of fair competition for the lumber and timber products industry as approved on August 19, 1933 by President Roosevelt
Portion of title:
Lumber and timber products industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
iii, 51 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Lumber trade -- United States ( lcsh )
Forest products -- United States ( lcsh )
Forestry law and legislation -- 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. 313-1-06."
General Note:
"389-A."

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:
004931556 ( ALEPH )
646276015 ( OCLC )

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Full Text





Registry No. 313--1--06


Per slal by the B~raperinend entofDocuments Washilngon, D.C. I Price 15 cents


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NATIONAL RECOVERY ADMINISTRATION


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FOR THIE


AS APPROVED ON AUGUST 19, 1933

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PRESIDENT ROOSEVELT


WE DD OUR PART


I. Executive Order

2. Report of hearing submitted to National Recovery
Administrator Johnson by Assistant Administrator
Dadley Cates


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by President p severlt


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GOVERNMENT PEINTING OFFICE
WASHINTO~NN: 1988


CODE OF~ FAIR COMPETITION


LUMBER AND TIMBER



PRODUCTS INDUSTRY


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EXECUTIVE ORDER


CODE OF FAIR COMPETITION FOR THE LUMBER AND TIMBER PRODUCTS
INDUSTRIES

An application having been duly made, pursuant to and in full com-
pliance with the provilsions of title I of the Nationa~l Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code of
F~air Competition for the Lumber and Timber Products Industries,
and hearings having been held thereon and the Administrator having
I.rendered his report containig an analysis of the said Code of Fair
Competition together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
Code of Fair Competition complies in all respects with the ,pertinent
provisions of title I of said act and that thlerequirements ofclauses
(1) and (2) of subsection (a) of section 3 of the said act have been met:
Now therefore, I, FRANKLIN D. ROOSEVFLT, President of thne
United States, pursuant to the authority vested in me by Title I of
the National Industria~l Recovery Act, approved June 16, 1933, and
otherwise do adopt and approve the report, recommendations and
findings of the Admlinistrator and do order that the said Code of Fair
Competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JoHNSON,
Admninistrator.
The WHITE 110USE,
August 19, 1988.
(II)




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3















:1~THE JADMINISTRATOR, N.R.A. U~l12 93
From: Dudley Cates, Assistant Administrator.
. LX Prel~imina~ry Statement.--I have the honor to submit herewith my
report on the: Code of Fair Competition of the Lumber aind Timber
Products Industries, including the hearing thereon.
. .There are attached hereto:
Exhibit 1. The Code as finally proposed.
Exhibit 2. Certificate of Incorporation and Bylaws of the
National Lum~ber M~anufacturers' Association.
Exhibit 3. Certificate of Incorporation of Lumber Code
Authority.
Exhibit 4. Notice of hearing.
Exhibit 5. Statement of procedure.
Exhibit 6. Economic and statistical analysis of the industry
and of the Code.
Exhibit 7. Transcript of the hearing.
Appendix 1. List of witnesses.
II. The Code and the Hearing (Uncontroverted matter omitt~ed).--
The Code as submitted by the industries is summarized as follows,
with suggested changes in the Code discussed in later sections of this
report .
I A statement accompanying the Code declares that it was submitted
in accordance with a resolution dated July 1, 1933, of the Board of
iDirectors of the National Lumber M~anufacturers' Association, repre-
senting more than 70 percent of the output of lumber and timber
products throughout the United States, concurred in by 45 trade
associations composed of manufacturers of lumber and timber prod-
ucts and by the single wholesale lumber association and the single
retail lumber association of national scope.
ARTICLE I--PIRPOSE
The declared purpose of the adherents to the Code is to reduce
unemployment in the industries reported, improve standards of
labor, maintain a reasonable balance between production and con-
sumption, restore prices to levels which will avoid further depletion
and destruction of capital assets, and to conserve forest resources and
bring about sustained yield from the forests.
ARTICLE II--DEFINITIONS

PacragraphL (a) Defines lumber and timber products.
Paragraph~ (b) Defines person.
Pa~ragra~ph (c) Defines Divisions and Subdivisions.








ARTICLE E I II--ADMINISTBATION
The applicant organizations propose to'establish a nonprofit cor-
poration named Lumber Code Authority to assist the NJational
Recovery Administration in administering the provisions of the Act as
set forth in the Code. Provision is to be made for membership or
representation in the Lumber Code Authority pf representatives of
the National Recovery Administration and of the prmeipal divisions
of the industries. Any producer is eligible to full participation in the
appropriate Division or Subdivision on terms of full equality with
other participants. Such Authority is intended to have broad admin-
istrative powers in giving effect to the provisions of the Act, and of
the Code, including enforcement of Rules of Fair Trade Practice.
The Authority is also empowered to designate appropriate agencies
for applying the Code in each Division and Subdivision of t~he lumber
and timber products industries. The Authority is solely vested with
the power and duty of enforcing the Code.
ARTICLE IV--CODE REPORTS AND E1EEB
The Authority undertakes to obtain and compile adequate informa-
tion as to the extent of observance of the Code and the results obtained
under its operation, with power of inspection of pertinent records by
authorized agents. Adherents to the Code are to share, in proportion
to production, the necessary expenses of maintaining the Authority
and its authorized activities.

ARTICLE V LABOR PnovisIoNs

Paragraph (a) Assures employees the right to organize and bargain
collectively through representatives of their own choosing.
Paragraph (b) Stipulates that membership or nonmembership in a
particular type of labor organization shall not be a requirement of
any employee or of any: person seeking employment.
Paarph (c) Provides that each employer shall comply with
standards of wages and hours and other conditions of employment
approved or prescribed by the President.
Paragraph (d) Prohibits employment of any individual under 18
years of age, with the exception of boys 16 years of age or over in
nonhazardous occupations during school vacations, or if there are
no wage earners 18 years of age or more in the families of such boys.
AnaIcLE VI--Houns or LAnon

Paragraph (a) Lays down general provisions for permitting certain
persons under defined conditions to be employed for longer maximum
hours per week than those prescribed in Paragraph (b). In general,
Paragraph (b) proposes maximum hours of employment of 48 hours
per week for logging in all producing regions and 48 hours per week
for sawmills and other operations, except that a 40-hour week ro
proposed for sawmills in the northwest and in certain other mins
cases .








: ~ARTICLE V1-IMINIMUM WAGES

Except for a few special situations, a schedule of minimum wages is
Proposed, beginning with 22% cents per hour or $10.80 per week of
48 hours m the South, up to 42% cents per hour or $20.40 per week of
48 hours in logging camps of the West Coast and Western Pine -Divi-
.asions.
ARTICLE III--DONTROL OF PRODUCTION

Parag~rayph (a) Empowers the Authority to make estimates of
expected consumption of lumber and timber prouct of ach espeimes
and aloctequotas of production on thebsiofucetite
among the several Divisions and Subdivisions. Actual quotas among
.Divintons are* to be in substantial proportion to production or ship-
ments of each Division during a representative period. Provisions is
made for felexbility in allocating quotas', provided modification of
quotas is warranted.
Paragraph (b) Provides requisite authority and flexibility to the
Authority in determining quotas to give effect to the provisions of the
Code in respect to the conservation and sustained production of
forest resources.
Paragraph (c) Provides that quotas for individual operators shall
be determined by the Divisions and Subdivisions upon an equitable
beisis of allocation, approved by the Authority. Provision is also
made for modifications in exceptional cases.
Paragraph (d) Stipulates that a reasonable minimum volume of
production based on practicable operations for each Division shall
not be denied to any person within such Division.
Paracgrapha (e), (f), (g), and (h) Set forth various provisions in re-
gard to allotments that must be observed, one of the most important
of which is that no person shall produce in excess of his quota.
ARTICLE IX--COBT PROTECTION

~Paragralph (a) Empowers the Authority in its discretion to establish
minimulm prices designed to cover the cost of production in the several
classifications of lumber and timber products. Such prices shall have
due regard to the maintenance of free competition among species,
Divisions and Subdivisions and with the products of other industries.
ParagrTaph (b) Stipulates that minimum prices shaUl not exceed
cost of production, determined in accordance with a proposed formula.
Paragraphs (c) to (A), inclueivre, contain provisions for special treat-
ment of small mills, for establishment of lower minimum prices for
products of inferior quality, for maintaining minimum prices as
established, for establishing the p rice of imported lumber, for possible
tatriff aadjustments, for obtaining information as to competition between
imported and domestic lumber, and for other purposes.
AnaIcLE 1.--ONSERVATION AND SUSTAINED PRODUCTION OF FOREST
REsoURCES
This article contains a, deliberate undertaking by the forest-
products industries in respect of conservation and sustained produc-
tiion of forest resources. It also provides for a conference between







4

the Secretary of Agriculture and the applicant industries for the
purpose of devising practicable measures of conserving and sustaining
production of forest resources.
ARTICLE XI--SPECIAL AGREEMENTS .
This article embodies the provisions of Section 4a of the National
Industrial Recovery Act. ,
ARTICLE XTII-CANCELATION OR hlODIFICATION.

Adjustment of the Code and of rulings issued under it are: to be
made in conformity with any action by the President .under. Section
10 (b) of the National Industrial Recovery Act.
ARTICLE X~III-M'ONOPOLIES
This article cites that the Code is not designed to promote monop-
olies and that it shall not be interpreted or administered to suppress
or oppress small enterprises.
ARTICLE XIV--DIVISION AND SUBDIVISION CODE PRovISlows
This article provides for rules and regulations of Divisions and
Subdivisions under Schedule A, insofar as not inconsistent with
this Code.
ARTICLE XV--VIOLATIONS
It is declared that violation of this Code a~nd of the Rules of F~air
Trade Practice is an unfair method of competition, subjecting the
offender to the penalties unposed by the National Industfriail
Recovery Act.
ARTICLE XVI---RULES OF FAIR TRADE PRACTICE
The rules of fair trade practice for.the lumber and timber products
industry, as set forth in Schedule B attached hereto, are specoifically
made a part of this Code."
ARTICLE XYVII--APPEALS

Appeals may be made to the designated agency of any .Division or
Subdivision, and appeals from the rulings of these agencies may be
made to the Authority.
ARTICLE XVIII--EFFECTIVE DATE AND TERMINATION

Paragraph, (a) Stipulates that the provisions of the Code as to
hours a~nd wages shall become effective three days after approval by
the President and other provisions within ten days after approval
by the President.
Par~agraph. (b) Provides that the. Code shall terminate on June 16,
1935, or on such earlier date as the National Industrial Recovery Act
may cease to be effective.








.Te. Code was formulated by representatives of the L~umber and
timber products industries during the course of several weeks, with
.unofficial assistance from .representatives of the National Recovery
Administration. It was originally submitted on July 10, 1933, and a
revised draft, under date of July 28, 1933, giving effect to desirable
alterations as brought out in the hearings, has also been submitted.
i.AIfter* legal notice of the hearing had been duly published, the hear-
ing. opYened July 20, 1933, and was concluded Juy 26, 1933. The
undersigned Assistant Administrator conducted the hearing, with the
assistance of members of the staff of the National Recovery Adminis-
traition, and in the presence of representatives of the Industrial Ad-
vriory Board appointed by the Secreta~ry of Commerce, of the Labor
Advisory Board appointed byV the Secretary of Labor, and of the
Consumers' Advisory Board appointed by the Administrator. Repre-
sentatives of the Forest Service of the United States Department of
Agriculture were in attendance for part of the t~ime.
Responsible representatives of all of the major divisions of the
lumber and timber products industries attended and took part in the
hearing, and wide public interest was also manifested by the presence
of a labrge audience and a full press complement.
TJo cooperate in giving effect to the provisions of the National In-
dustriall Recovery Act, the lumber and timber products industries
Appointed an Emergency National Committee. This commlitte~e was
i in general charge of drafting the Code and of arranging for the wit-
nesses who appeared in its support. In1 addition, many persons not
selected by the Emergency Nat~ional Committee, who claimed interest
in the matters under considerat~ion,were heard. Several rep resen tatives
of.Labor were heard. By means of questioningq all witnesses, the As-
sistant Administrator sought to develop the issues clearly in full detail.
A complete list of witnesses with their affiliations is attached as
Appendix 1.
All statutory and regu~latory requir~ements were observed.
IIL Sucmmar~y and Conlclusions on th~e Ec~idnce.-1l. Hours of Labor
(Recommended reduction of weekly hours t~o 40).
SWitnesses stated that the lumber andi timber products industries
had been accustomed t~o operate a comparatively large number of
hours per week, approximating 60 in the South and 48 in the North-
west. Accredited representatives of the lumber industry in the South
stated that they were willing for their region to accept the responsi-
bility of proposing a week of 48 hours, as compared with that of 60
hours which is customary (Sheppard, (2) L-6-108).
SRepresentatives of the industry in the W7est considered that a week
of 48 hours in the woods and 40 hours in the mlills was practicable,
with certain reservations to conform to the seasonal character of
important areas of this region (Greeley (3), C-6-16, IS; M~ason (4),
S-4-103).
Calculations by the Southern Pine Association indicated that a
week of 48 hours in the South would provide reemployment for
31,250 wage earners (Sheppard, (2) L-7-109). On the basis of 40
hours in th~e mills and 48 hours in the woods in the WVest, it was
estimated that reemployment would be given t~o 141,000 workers
(Ruegnitz, (2) Q-4-151; Gre~eley, (3) C-7-17). Thus the twro districts
where the bulk of the industry is located were estimated, on the
maximum ours proposed by the industries, to provide reemployvment
9673--3-2a








for 45,250 persons, assuming no change in current part-time employ-
ment of workers.
On the basis of the maximum hours per week which are recoin-
mended in this report and with output of lumber and timber products,
including woodworkr, estimated as continuing to exceed the d~epressed
levels of the first months of 1933 by 100 percent, as was the case in
June and July, it is calculated that additional employment would
be available for some 114,500 persons As employees m the lumber
and timber products industries, not including woodwork, wooden
package, and miscellaneous industries, declined from 410,084 in 1920
to approximately 196,500 in 1931, reabsorption of displaced labor
is of paramount importance. Although employment has increased
markedly in the several lumber and timber products industries
during recent months, there was no difference of opinion among
witnesses that much of the increase has been due to speculative
cutting, manufacturing, and purchasing of timber products for the
purpose of anticipating higher prices (Compton, (1) B-7-14; Greeley,
(3) D-3-21; 30 and 31).
During the early months of 1933 the industries as a whole were
operating at approximately 16 percent of capacity, with average
hours per week of less than 40. For the months of June and July
operations were about 31 percent of capacity, with estimated addx-
tions to the labor force of 31,767.'
After giving due weight to all relevant considerations, the conclu-
sion has been reached that maximum hours of labor of 40 per week
should be established, both for the South and North, as well as for the
Northwest, although this represents an average shortening of hours
foof approximately % for the South and North as compared with Si3 to %
fortheNorthwest. There was no discussion at the hearing of the
economic effects, so far as the South was concerned, of a still further
shortening of the hours of work to 40 per week, except that a repre-
sentative of labor advocated a work period of less than 40 hours
(Green, (3) L-3-66). It is impossible to indicate, therefore, the
precise results of establishing a 40-hour week in the lumber and
timber products industries of the South, except that it seems clear
that corresponding reductions of hours in competing industries will
be essential if the relative position of the southern lumber industry is
to be maintained (Sheppard, (2) C-2-130, 140, 141).
On the assumption that this interindustry competitive equilibrium
will be maintained, an increase in volume of sales, permitting an in-
crease of about 50 percent over recent rates of production, would be
necessary to restore employment to as many persons as were occupied
with lumber and timber products industries in the South during 1920.
As for the Douglas fir industry, which is the principal alternative
source of supply in competitive markets to southern soft woods, a
work week of 40 hours was proposed in mills and factories (Greeley,
(3) C-6-16) and 48 hours in logging camps (Reeley, (3) C-4-14). A
reduction to 40 hours per week in both mills and camps would not
provide as much reemployment, on a relative basis, as the same
schedule when applied to operations in the South (Sheppard, (2)
P-2-139).
a Basis of calculation shown In Economic Report.









::About 65 percent of total lumber production is absorbed by the
construction industry. Therefore sustained improvement in the
lu Timber industry cannot be expected apart from revival of building
(Greeley, (3) I-7-51; (6) CC-2-160), particularly construction of resi-
dences (Compton, (1) B-8-15, 16). Competent testimony indicated
;thia a lag of about nine to fourteen months occurs (Compton, (1)
1~6-23) before definite improvement in building contracts is re-
ei8,rted in sustained increase in output of lumber. The lumber indus-
y' jis i more likely to benefit from increased activity in other industries
thani~is to be the cause of improvement elsewhere (Sheppard, (2)
M4411).Accordingly, considerable time must elapse before the
effects on volume of employment can be definitely known a.s a result
of etstblishing a work week; of 40 hours.
2. Excceptions to Forty Hozrr Maximuma Work W'eekl.--Seasonal fac-
tiors; of pronounced character are encountered in certain divisions of
the timber industry. Fortunately, in the principal producing regions
seasonal factors are of no great importance. But in the high Sierras
and other districts of the West (M1Lason, (4) S-2-101), operations are
impossible during the winter (Johnson, (7) D-1-19), whereas in cer-
tain sections of the northern hard and soft wood regions the winter
i is the period of greatest activity in logging (Osborn, (5) P-2-66).
Operations in some areas must be intensively conducted in those
seasons of the year' when the condition of the streams makes water
driving feasible. Moreover, fires, wind storms, and other exceptional
causes (Fentress, (6) JJ-3-196, 197) often make it necessary to har-
vest timber with great rapidity if large losses in our timber resources
are to be avoided. For all of these reasons the testimony was con-
vincing that certain flexibility in the maximum hours of labor per
week should be introduced, accompanied by adequate restrictions to
Prevent such flexibility from being made the vehicle of abuses (John-
iI son, (7) C-4-18; Mvason, (4) S-4-103). Necessary safeguards are pro-
vided (Art. VI, par. (az)) by requiring that, average employment in
any seasonal operation shall not exceed the standard schedule of
hours during any calendar year.
Child labor is not a serious problem in the lumber and timber
; products industries. In the Clode as submitted they proposed that
Sno person under 18 years of age should be employed, with certain
exceptions, but in order to obtain unifor~mityg in the various industrial
codes a minimum age of 16 has been subhstitut~ed.
3. Machine Hou~rs.--In contrast with many other industries, only a
comparatively small number of lumber manufacturing establishments
operate more than a single shift. Establishments operating more
than one shift are, however, of considerable importance in volume of
production (Sheppard, (2) M-3-l l3; Greeley, (3) C-2-12, 15).
Under present operating conditions with capacity greatly in excess
i'even of the accelerated output of recent months there has been no
special problem of two or three shift operations, but this is a possi-
bilityv if maximum hours of employment per week are placed at 40.
I This contingency has been provided for in drafting the Code. Article
r VITII, providing for control of production, at t~he same time places an
automatic limitation on the abuses of excessive machine hours.
It was testified at the hearing that the abuse known as "stretch out "
t:is not characteristic of the lumber and timber products industries
ji(Greeley, (3) H-2-40).








4. Walcge.P.--A very high proportion of the employees in the lumber
and timber products industries are classified as unskilled and semzi-
skilled. For example, 83.51 percent of total employees in sawmills,
on an average for 1928, 1930, and 1932, are classified as laborers bry
the United States Bureau of Labor Statistics. Due to this fact,
these industries have tended to pay comparatively low wage rates.
Even in 1928 laborers in southern sawmills received a weighted a~ver-
age wage rate of 21.9 cents per hour, and this unsatisfactory rate had
declined to 12.6 cents per hour in 1932. Testimony revealed the
astounding fact that wages of 5 cents per hour have not been uncom-
mon in recent months (Ambrose, (7) J-4-64). Weighted average
wages in sawmill industries for the entire United States in those
categories classified as laborers amounted to 20.5 cents per hour in 1932.
There was uniformlity of opinion that wage rates should be increased
and gratification that agencies of the government were prepared to
afford encouragement and protection to operators desiring to pay
higher wages (Sheppard, (2) M-7-117; Ambrose, (7) I-4-57 and (7)
J-3-63), against the economic pressure and industrial desloralization
resulting from the activities of the small minority who would not
cooperate in improving wage standards (Sheppard, (2) P-9-146).
Proposals by the southern lumber industry to increase minimum wages
to 229~ cents per hour represented an advance of practically 100
percent from the average of 11.6 cents per hour (Sheppard, (2)
M-6-116) and three hundred fifty percent above the minimum wages
paid in the month of April 1933. This is convincing evidence of the
industry's desire to contribute toward increasing purchasing power in
accordance with thle principles of the National Industrial Recovery
Act.. No little apprehension was revealed in the hearing, both by'
advocates a~nd opponents of the Code, in regard to the effects o
attempting such a large increase in wage rat~e~s (Sheppard, (2) P-5-142).
Disturbance of the int.erspecies equilibrium between southern pine
and Douglas fir (Sheppard, (2) P-2-139, 140) was feared, as well as
adverse effects from increal.singa the advantage of products of other
industries which are competitive with lumber and mill products
(Sheppard, (2) O-1-129, 130).
A dilemma is presented in respect to minimum wages in the South.
They have been deplorably low. But. even so the products of this
region are in keen competition with the products of other regions
which have paid much higher wages. This competition is always in
precarious balance. As the proportion of labor costs to total costs
is higher in the South than with its competitors (Sheppard, (2)
P-2-1.39), increase in labor costs tends to disturb this balance. If
sufficiently disrupted the market for southern woods would be
decreased, production reduced, and employment necessarily decreased.
Any rate of wages fixed for the South must therefore be determined
with a view to disturbing the competitive balance as little as possible.
The objective is to increase wages and not decrease employment at
the same time.
In addition to the very real problems which are involved by reason
of increased wages in t~he southern pine industry, there are certain
less important areas such as the northern and central hard wood
Subdivisions where diffculty might be caused by wage increases
which might alter interspecies equilibrium (Osborn, (5) R-1-73, 74;
Townsend, (10) B-492).








Since hours of -employment. for persons classified a~s laborers in
r sawmill occupations had declined to 38.0 per week, during 1932, it is
evi sden't that= total earnings, based on a weighted average of 20.5 cents
per15~ hour represented inadequate weekly income. Pay rolls for the
eCnt~irce lumber and timber products industries had, in fact, declined
fSrom $5~79,0;00,000 in 1929 to approximately $110,000,000 during
lob,:w;fith the result that an adequate contribution t~o national pur-
Glitaig power was- not obtained from these industries, which were
th-e f ourth largest employers of industrial labor (Comptron, (1)
Oi :!ne of the spokesmen for labor contended that wages should be
grS~eatlyI:.increased, but he presented no specific evidence (Weaver,
S(i5) H-2-37 to 39) as to what increases he considered justifiable nor
asto how the industries in question could operate if they paid sub-
stian~tially higher rates than those proposed in the Code which was
presented.
;.. On the basis of average rates of pay and number of hours of emlploy-
ment per week, average earnings for laborers in sawmills for the
T~itited States in 1932 had reached t~he unsatisfactory level of 87.7i8.
Corresponding weekly earnings for laborers in southern sawmills were
$4.94. It is true that declining prices of commodities somewhat
mitigated the effect of these inadequate wages, and on the basis of
1929 3 prices the average weekly wage for sawmill laborers in the:
United States in Mvay, 1933, would have had the purchasing power of
$11.10, while that of employees in southern sawmills would have been
equall to $7.11.*
There is imperative need that purchasing power derived from the
lumber industry be increased, and this can be accomplished if the
industry is enabled to pay and does pay higher wages. Although the
wage schedules proposed by the southern industry represent an
important advance over those at present in force, somewhat further
advances are believed to be justified. After careful consideration
of the evidence presented in the hearing, as well as that prepared by
the Division of Planning and Research of the National Recovery
Administration, it wras concluded that wage rates a~t least equal to
those paid in 1929 were desirable and possible, provided that. 1929
rates equaled or exceeded 30 cents per hour. However, a large number
of employees in the lumber and timber products industry, probably
amounting to 80 percent of the total, received less than 30 cents per
hour in 1929.
No group of laborers in logging camps or mills were represented as
having received less than 20 cents an hour in 1929, and it is recom-
mended that groups which received this inadequate wage should
have such rate increased by 15 percent with increases on a uniformly
dimitnishing scale for each cent per hour between 20 and 30 which
was received in 1929 by any wage group. Application of this formula
would establish minimum wages in the lumber industry as 23 cents
per hour, and this would be the equivalent of 34.74 cents per hour in
MZayv 1933, on the basis of 1929 pricesq or 62)( percent in excess of the
weighted average of wages paid to employees classified as laborers
'.IAssumingr that 1932 pay rolls declined equally with lumber production as reported by the Census for
1B2Z.
,, oat of living 1929-100,
r Adfnsted to 1920 cost of living-100.
i Also adjusted to the cost of living, 1929.






10

in southern sawmills in 1928, detailed statistics for 1920 being un-
available.
On the basis of increased labor cost for three important softwood
regions, purchasing power will immediately be increased $32,500,000
per annum, assunung lumber production only at the 1932 volume.e
Some 85 percent of all employees in the lumber and timber products
industries will be directly affected and benefited by the recommended
minimum wage rates, in addition to the 114,5007 who, it is hoped, will
be added to the pay rolls.
5. Labor Organiza~tions .-Labor is not highly organized in the lum-
ber and timber products industries. Theprincpl exception. to this
general condition is found in the West and Notwest (RueIgit
(2) S-2-163), where the Loyal Legion of Loggers and Lumbelrmen
(Greeley (3) E-2-24), commonly known as "The Four L"' is of con-
siderable importance. About thirty percent of total employees in the
regions where the Four L is established are included within its mem-
bership (Ruegnitz' letter 8/7/33). This organization engages in
collective bargaining (Greeley (3) E-2-24) (Ruegnitz (2) 8-2-163) on
behalf of its membership and has been in considerable part responsible
for the fact that wages and working conditions are more favorable in
the West and Northwest. than in other timber producing areas.
Certain witnesses stated that the Four L was a company union
(Green (3) O-4-84; Noral (8) DD-6-163; Hans (5) J-3-44), but the
representative of the Four L testified that his organization was con-
ducted for the benefit of employees, with locals at operations under
125 different managements, and that in bargaining with employers
members of the Four L were at liberty to choose nonmerhbers to
represent them (Ruegnitz (5) K(-1-45). Representatives of the log-
ging and manufacturing industries declared that membership in the
Four L was not a condition of employment or of preference in the
territory where the organization is located (Greeley (3) E-2-24).
6. Cost Protection.-Ample evidence was produced at the hearing
that the industries have operated on an unprofitable basis for several
years and that they did not share in the years of prosperity termi-
natmg in 1929 (Compton (1) B-5-12). Their financial position at
present will not permit the assumption of additional charges unless
such increased costs as may be assumed can concurrently be recovered
by equivalent. adjustments in prices (Compt.on (1) B-10-17) for lum-
ber and timber products (Sctibolt (4) V-2-116; Mason (4) P-2-88).
Consequently it was proposed, both in the Code (Art. IXL) and in
the hearing (St~ibolt (4) V-4-118 to 121), that reasonable costs should
be determined and that lumber and timber products should not be
sold or offered for sale at prices which did not cover such costs.
Public. protection against abuse of this power to fix minimum
prices is essential. This can largely be accomplished by having a
mathematical formula for determining what constitutes cost protec-
tion. An additional protection is that of interested and informed.
buyers. Representatives of the national retail and wholesale asso-
ciations are to be members of t~he L~umber Code Authority. Deter-
mination of prices is required to come before the Authority in order
to prevent unfair competition between divisions as well as in the
public interest. Representatives of the Administrator are also to sit
a Refer to Economic Report. r Refer to economic report.






11

on the Au~thority. If in the exercise of their interested and informed
judgment on prices the retail and wholesale representatives believe
unduly ~I~high prices are being proposed or are in effect, the Adminis-
~tanor =is instantly informed through his own representatives on the
Dode Authori~ty and has an umnediate veto.
,niasmuch as forests constitute a national asset of the highest im-
e~~aie, they should not be utilized in an improvident manner.
;Priring. recent years, however, restricted markets for timber tracts,
iEambiined with heavy carrying charges (Compton (1) C-3-26), have
couraiged uneconomic operations (Greeley (1) H-10-85), to the
point,~ where tunber was converted into lumber and wood products
an ome instances at an actual out-of-pocket operating loss (Mason
(4) Q-1-91), not to speak of no recovery whatever on the wear and
Wahr of plants and equipment. Conversion of timber under such
conditions always entails waste by forcing the operator to leave
l~ow-grade logs in the woods and burn low-grade material at the mill
(GOreeley (1) H-10-85) (Denman (Sa)-E-2-22). National interests
arie injured by these practices (Compton (1) E-2-25), and there is
no apparent method of terminating such abuses (Stibolt (4) V-1-115)
except by forbidding the sale of timber products at prices which do
that. cover cost of production (Stibolt (4) W-4-124). Competent wit-
aessres testified that the responsible elements in the lumber and tim-
ber products industries deplore the unnecessary destruction of timber
resources, but that financial pressure and the competition of many
small producers of timber (Greeley (1) F-3-55), including farmers,
often without cost records (Sells (6)-T-2-115), prevent the orderly
h~*iarvesting of the nation's forests by those who favor a constructive
policy.
In general terms, it can be stated that in past years and especially
in certain regions, although in a constantly diminishing degree, capital
has been primarily interested in standing tunber (Fentress (6) 1 1-2-189 ;
(B) LL1-206; (6) MM~-2-212-213), whereas the chief concern of labor
is, in connection with logging and milling operations and the wood-
workcing industries. In view of the primary object of the National
~Industrial Recovery Act to increase employment and purchasing
power, immediate emphasis has been placed on logging and manu-
facurig ctiites n reparing the Code of Fair Competition. This
does not imply that tergt fonr fsadn ibrhv
been sacrificed, but for the present they have been subordinated to
the necessity of placing more men at work at higher wages (Fentress
(6) MM1-2 to 4, 212-14).
According to a study by the United States Forest Service in 1932
nearly 41 percent of the standing timber in the United States was
owned by the Federal, State, and local governments, and 59 percent
by lumber and timber companies, farmers, and others. Prices for
tunber lands had a rising tendency for several decades, but that
.tendency was interrupted during the nineteen-twenties, and current
prices are usually flr less than those which appear on the books of
many if not most of these owners (Compton (1) B-11-18; Fientress
(6) HH-2-185; Greeley (1) F-13-65).
Because of forced sales of timber tracts for tax purposes (Greeley
(4) Z-3-138), because of exhaustion of financially resources, and because
of the uncertain outlook as to timber values, it is difficult to establish
a current fair value for standing timber (Sheppard (6) FF-4-175;








Denman (5a) J-3-60). Several witnesses declared, however, that~
determination of current fair value can be accomplished (SheppardE
(6) FF-3-174-176; Ambrose (7) J-1-61; Greeley (4) Z-1-186).
It would be contrary to public policy to permit the introduction
of any formula for cost protection which would attempt to reestab-
lish such values of stumpage as prevailed during the early ninetieen-
twenties, when peak prices were reached. Nevertheless, conver~ters
of timber into useful products should pay or be paid a fair price for
the raw material consumed, which in tins case is stumpag.I nob
other manner can the lumber and timber products mutisb
rehabilitated and assurance be had that these industries will afford
regular and increasing wages to that large number of persons whoe
look t~o them for employment.
Minimum price is not an absolute term, but can be calculated
according to various formulas which are defensible. There are, how-
ever, definite limitations within which any specific minimum price
must be established. The lower limitation would have to include
out-of-pocket operating expenses; the upper limitation would, in tadd~i-
tion, include recovery of capital. Profit in no case should constitute
an element of minimum price authorized by governmental authority.
Little difference of opinion exists as to the elements in a sound
formula for affording cost protection on such matters as the inclusion
of wages, materials and supplies, necessary selling expense, overhead,
insurance, and taxes (Greeley (4) Z-3-138 to 156; Stibolt (4) Y-4-134).
Interest actually paid should be allowed (Greeley (4) AA-7-145).
Aside from direct-o ut-of-pocket costs, which obviously should be
allowed, important questions of principle arise as to recovery of
capital and by means of a minimum price assuring ability to meet
financial obligations. It is clear, however, that if the lumber and tim-
ber products industries are to continue as privately owned and oper-
ated enterprises, they have to receive a reasonable price for standing
timber and to amortize the plant and equipment necessary for con-
verting timber into lumber and timber products. These considera-
tions have been kept in mind in preparing the proposed formula for
cost protection.
Of some 20,000 sawmills in the United States, more than 15,000 are
valued at less than 55,000 each (Compton (1) B-6-13), and a large
number of farmers sell small quantities of logs to sawmills, or else
operate sawmills themselves. Total volume of logging and manufa~c-
turing operations by farmers is of considerable importance (Townsend
(10) B-487,488). 1These farmers and small operators frequently do
not keep accounts, and even some of the large mills are carrying obso-
lete and excessive plant and equipment on their books, with corre-
sponding exaggeration of depreciation charges (Sells (6) T-2-115;
Denman (4) EE-3-159). Adequate, uniform, and realistic accounting,
particularly among small establishments, is not characteristic of ti
industry (TowRnsend (10) B-491). Although proper charges for depre-
ciation constitute a valid element of cost, this element cannot be in-
cluded in the proposed cost protection formula a.s applied to the lum-
ber and timber products industries until more and better data are
available.
Permission to establish minimum prices for lumber and timber
products is believ-ed to be necessary to make possible the increased
wage schedules which are recommended in this report. But the neces-







18

sity of devising a cost -protection formula also affords an opportunity
to mitiiate a comprehensive conservation and reforestation program
of fshe widget s~ignificance,; such as the industries have agreed to under-
~taih,..in aciordan~e with the stipulations of Article I of the Code.
7. Gissenserionatin a Sustained Prodluct~ion.-Art~ile X of the Code
as ortigina~ll submitted, was redrafted in consultation with the
Fior~esr of t~he United S~tates and spokesmen of reoognized conserva-
.Alan agencies (Compton (2) J-5-96). The Forester then appeared at
$tbe hearing and approved the revised Article X on condition that the
indE~ustries undertake to :bring about conservation and reforestation,
whicha was~ag~reed to as a binding covenant. This action elicited the
Idhlowing astatment by Major R. Y. Stuart, Forestor of the United
. States:
"May I say, Mr. Administrator, in my judgment this article as it
hpa~s been amended to my mind opens up a new era in forestry, forest
~priduction, forest protection, and we in the Forest Service will very
eagerly do rall that we can not only to cooperate with the industry in
tfhe p performance of its obligations, but also put forth our utmost
~efforts to have the public, particularly the Federal Government,
~expend its cooperative effort to that end." (Stuart (2) T-1-115).
.It is gratifying to remark the fact that an issue: which has been the
s alhject of such prolonged controversy is finally concluded by the
voluntary action of the lumber interests. After many years of
sendies and conferences, there appears to exist a clear understanding
between the lumber interests and the Forest Service on the many
.pr~actical problems which are involved in giving effect to the principles
-" of onservation, as well as a, meeting of minds as to their solution.
I therefore recommend that the further negotiations and commitments
provided for in the revised Article X be approved, but on the under-
~standing that in the event this article is not found to be effective, a
further hearing or hearings may be called to revise it.
Theolse who use lumber and timber products should pay for the
replacement of such products. As one of the factors of minimum
price;, subject ~to market conditions, it is proposed to include an amount
adequate to cover the cost of conserving and replacing as much timber
as.is harve~sted. Estimated additional charges which will have to be
imposed upon each 1,000 feet of lumber in order to bring about this
important result are surprisingly small. They have been obtained
fjron the Fo'r~est Service of the United States Department of Agricul-
taur~e and appear in detail in the report of the Division of Planning
~antd Riesearch.
FEor a few of the more important species the increased price for each
1,000 feet of lumber in order to accomplish full conservation and
replacement is estimated by the Forest Service as: 25 cents to 45
cents for Douglas fir, 75 cents to $1.00 for southern pine, 50 cents for
central hardwoods, 25 cents for redwood. If the cost protection
formula can be utilized for accomplishing the major objectres of'
conservation and reforestaltion the device will be amply justified.
8. Produzction Control.--Evidence presented at the hearing was
ui~formly to the effect that much of the recent increase of activity
in the lumber and timber products industries, perhaps as much as
two thirds, represents speculative operations or operations based on
~speculative buying (Compton (1) B-7-14: Greeley (3) F-3-30 to 32).
0678-8--3~








Logging and sawmill activities have continued at a low level. for so
protracted a period of time (Greeley (1) F-4-56) and capacity is so
greatly in excess of even the enlarged operations of recent months
(Fentress (6) II-3-190) that control of production is imperative if
renewed and accentuated demoralization of the industries and dis-
location of labor are to be avoided (Fentress (6) LL-3-208 to 200).
There was evidence (Stibolt (4) WV-1-121 and 129; also (5) E-4-20)
that particularly in the case of lumber, demoralized selling below cost
is probable, even when the volume of production is controlled. A
log produces many items of lumber, some valuable, some nearly
worthless. The valuable must carry the nearly worthless, and a
balance must be struck between profit on the one and loss on the
other, if the cost of conversion is to be recovered in prices (Stibolt
(4) -1-11).Individual operators, with defective cost-accountmy'
systems, are not competent to determine what schedule of prices wall
in the long run be equivalent to the cost of manufacture. The
lumber operator without knowledge of his costs has the power to
undermine the whole price structure, and his incompetence imperiled
even the best informed of his competitors.
Application of the principle. of production control presents mainy
difficulties. One of the most controversial subjects discussed at the
hearing was whether control of production would be equitably admin-
istered (Fairburst (8) Z-6-143; Johnson (7) G-7-38; Denman (4)
FF-4-167). The experience of the Lumber Survey Committee of the
United States Timber Conservation Board, which has made quantity
surveys of expected consumption for the past two yeani, has demon-
strated the feasibility of determining aggregate quotas for the lumber
industry as a whole a~nd the Divisions and Subdivisions thereof.
Several persons contended that the Administrative machinery
would inevitably fall into the bands of large operators (Fairhurst (8)
Z-5-142; Walter Johnson (7) C-3-17). Others recognized that exper-
ience would be required to determine aggregate quotas for the lumber
industry as a whole, which would at the same time maintain a reason-
able balance between production and consumption and assure an
adequate supply of timber products, as well as to make specific allot-
ments to the various producing regions and to individual operators
(Greeley (1) F-10-62 and 64).
In the draft code as submitted, it is proposed that "Quotas for
persons within respective Divisions or Subdivisions shall be determined
by the designated agencies thereof in accordance with an equitable
basis or method of allocation *" approved by the adminia-
trative organization to be established. Vague language of this
character is not acceptable. Allotmlents should be based upon a
definite formula composed of factors which can be mathematically
determined from ascertainable facts. The formula should be such
that each operator could virtually calculate for himself the allotment
which he should receive. Any other arrangement would create
suspicion and contribute to the realization of that apprehension
luc~h was expressed by several witnesses (W. Johnson (7) E-4-25
and G-7-38) who commented on the proposal for control of production.
Provision should be made for emergency situations, such as. timber
affected by fie, wind, and insects (Fentress (6) JJ-1-195 to 197).
Appeals on allotments should be possible at reasonable cost cand with
t~he assurance of prompt decisions (Greeley (1) H-5-80 and 81).
Full publicity should be! provided as to the determination of quotas








and allotments and as to~all appeals and decisions thereon. To give
effect to the foregoing suggestions, an alternative proposal to that
submitted by the lumber and timber products industries has been
prepared and is recommended herewith.
Many persons within the industries desire to place in the Code of
Fair Competition (Greeley (1) F-9-161 and 162) a provision that
additional sawmills and wood-workiing establishments should not be
permitted in view of the recognized over-capacity which at present
prevails. After due consideration and in the light of representations
made by the National Recovery Administration, limitation of new
capacity is not proposed in the Code.
SIn revising the production control proposals which were submitted
Sby the industries, attention has been given to t~he principles outlined
r above. The revised draft provides for mathematical determination
of production, quotas, for the purpose of balancing consumption and
production, while assuring adequate supply; it stipulates that all
producers of lumber and timber products are entitled to a~nd shall
receive allotments; it provides definite factors which must be given
consideration in the determination of quotas and allotments, yet
preserves the principle of self-government in industry by permitting
each Division and Subdivision to adjust the several elements of the
formula to its own peculiar conditions; further flexibility is provided
in that exceptions are permitted for adequate cause; simple, inexpen-
sive and expeditious methods of appeal are assured t~o those who
believe that specific allotments have been inequitable; publicity for all
offcial acts is required; finally, it is recognized that improvements in
j constructing-and applying the formula can undoubtedly be made in
the light of experience, and revision is therefore permitted and
expected.
Procedure for establishing quotas, as recommended in Article VIII,
should be based upon that utilized with pronounced success by the
Lumber Survey Committee of the United States Timber Conservation
Board. This procedure has the- advantage that it can be promptly
applied on the basis of date already in hand. It is correct in basic
principle and is subject to further refinement in the light of statistics
to be made available by the Code provisions and the facilities under
the Code for analyzing and applying t.be statistics.
The central factor in this method is inventories. The right volume
of stocks adequately to meet the needs of consumption under varying
conditions of demand is determined from statistical evidence, and pro-
duction is regulated to maintain such stocks. This method of han-
dling production control has been effectively applied in certain
important industries. WVhile the language of Article VIII does not
in terms prescribe such method, it does permit it.
9. M~onopolies.--The Code as recommended will not result in
monopolization in the lumber a~nd timber products industries, nor
promote monopolistic practices. As stated above, there are now
some 20,000 sawmills in the United States, of which more t~ha.n 15,000
are small enterprises whose mills are valued at less than 55,000 each
(Compton (1) B-6-13). The Code as recommended contempla.tes
their continued operation a~nd guarantees free access to the market
to new enterprises, subject to the same limitations as are applicable
to those already in the market, namely, that prices shall not be below
the average cost of production as and when determined by the Code






16

Authorityv, and production shall not exceed the allotment made by
the agency of the: Code Authority in that Division or Subdivision mn
which such new enterprises are located.
The operation of these two limitations is subject to supervision
which will adequately safeguard the public interests against monopo-
listic practices in unreasonable or unwarranted restriction upon either
price or production policies. Subject to these two limitations, the
competitive forces within the industry will be in active operation,
with the necessary incentive to keep prices rea~sona.ble furmsehed by
the competition of substitute materials, and the necessary incentive
to obtain maximuml production furnished by the constant pressure on
the industry of carrying charges for stumpage and excessive pro-
duction capacity. In view of the number of operators in the industry,
there is no danger of domination of prices or production by any single
operator or any group of operators. The Code as recommended
protects the small enterpriser by assuring him a. production quota
and mlinim~um prices that will not be below the average cost of pro-
duction in his Division. The numerical superiority in the industry
of small enterprises and the form of organization of the agencies
of the Authority are in themselves safeguards against any oppressive
or discriminatory operation of the Code against them.
10. Adm ini~strative Agency.--The lumber and timber products
industries' Code in substantially the form recommended in this
report would necessitate considerable administrative machinery for
its enforcement. The lumber and timber products industries are
prepared to assume the responsibilities of self-government (Greeley
(1) F-14-66), subject to governmental supervision, and they therefore
propose to create a. Lumber Code Authority which shall be a non-
profit corporation with the board of directors composed of representa-
tives of the several producing regions. Such an Authority should be
approved only if membership in the component. Divisions and Sub-
divisions in the several producing regions and among the various
constituent industries shall be open to all logging operators and
manufacturers of timber products on equal and reasonable terms.8
Approxrimaltely 73 percent of all lumber and timber products is
included in the membership of the trade associations which would be
represented in the Lumber Code Authority. This is at high degree
of organization for any industry. It would therefore seem to be the
logical agency to which self-government within t~he industries should
be entrusted.
Sufficient provision was not made in Article III, as submitted, for
eliminating the abuses which have largely contributed to the present
unsatisfactory state of the timber industries. The proposed Code
Authority should be authorized immediately to prohibit trade
practices which have already been declared to be unfair by the
Federal Trade Commission.
It should also be empowered to devise and apply fair trade practice
regulations, designed to assure adequate supplies of well-manufac-
tured lumber and timber products at fair prices, to contribute to
conservation and reforestation, and to enable the industries to
furnish steady employment at living wages to those hundreds of
thousands of employees who look to them for a livelihood. Certain
I From Lumber and Timber Information", published by National Lumber MeaaBoturers Aaeoalation






17

sruggested amendments of and additions to Article III are intended
to bring; about these results.
Some of the specific fair-practice proposals are not acceptable
(Gerrity (9) Q-4-251 to 273) (Gillman (9) WT-4-274), particularly those
that deal with retail distribution (Tozzer (10) EE-6-311), and this
I section of the Rules of F'air Trade Practice as submitted by the
industries is not included in the draft recommended for your approval.
It should be returned to the industries for revision. As proposed -
b2y the industries, retail lumber dealers would in many circumstances
bie given the status of local lumber monopolies to the detriment of the
public (Gerrity (9) R-2-254). This should not be allowed. It should
be possible for the industries, in consultation with the wholesale
and retail distributors of their products, to devise means of assuring
orderly, fair, and economical distribution, not subject to the objec-
tions which have been outlined. They should be required to submit
In addition to the Rules of Fair Trade Practice which are applicable
aike to all: Divisions and Subdivisions, the industries proposed
numerous exceptions and additions which are intended to apply to
particular situations. Some of these are inconsistent with the general
Rules of Fair Trade: Practice. Need for prompt action in a.uthoriing
the industries as a whole to adopt their Code a~nd put it into effect,
does not afford sufficient time to harmonize these exceptions and
additions with the general Rules.
Consequently, it is recommended that the Rules of Fair Trade
Practice shall not come into force until November 1, 1933. During
Sthe intervening period opportunity will be afforded to effect revision,
satisfractoryT to the Administrator, i the Rules as proposed by Divi-
sions and Subdivisions and to have them become effective on the
foregoing date.
Nevertheless, the time is most opportune for eliminating certain
unfair methods of competition which have afflicted the lumber
industry and also for introducing improved standards of production
and marketing which will be of permanent benefit. Even though
a small portion of the Rules of Fair Trade Practice, as submitted by
the industries, is not in such form that it can be recommended for
immediate approval, a requirement that fully comprehensive rules
of fair trade practice shall be prepared and put into effect with the
approval of the Administrator should be one of the conditions of
authorizing the Code as to hours, wages, cost protection, control of
production, and other aspects of fair competition.
Branding or marking of lumber and timber products has been
officially endorsed by producers, distributors, and consumers for more
thin: ten years, and the principle is incorporated in American Lum-
ber Standards", which establishes the bases of lumber grading. It
has also received the approval of the United States Timber Con-
servation Bo~ard, which contains the following statement in its "Con-
elusions and Recommendations ", dated June 8, 1932:
"Regulattions which would require that shipments of lumber and
i:timbers in interstate commerce be graded and identified in accordance
with publicly recognized standards of grading and inspection are
essential to the protection of the public interest. Unless the industry








speedily and effectively assumes this responsibility, Federal regula-
trons comparable to the so-called 'pure food' laws must be invoked."
The branding or marking of lumber, timbers, lath, shingles, and
flooring in such a manner as clearly and permanently to indicate (a)
species; (b) whether the dimension is standard; (c) grade; and (d)
dryness, should be established as standard practice to the extent st~a
th~e practical considerations involved permit and as soon as reasonable
and workable provisions can be developed for making such practice
effective. This practice is not proposed by the industry in the Code
as presented. The industry should be required to develop and
present a definite plan of marking lumber and other forest products
and submit it to the President for approval not later than January 1,
1934.
Certain differences of opinion among producers of western pins
were set forth at the hearing. A? group of producers of western pine
lumber in California did not feel that they were properly represented
by the Western Pine Association, asserting that differences of condi-
tions in their region called for their recognition as a separate division
under the lumber code. Sufficient evidence was not presented to indi-
case that these producers had problems so different in character from
other establishments in the western pine territory as to justify special
treatment under a separate code. It is believed, however, that the
group of lumber manufacturers in question, organized recently under
the name of the California White and Sugar Pine Association, should
be given appropriate representation in the administration of the Code.
A group of small manufacturers of railway ties in the Northwest
wished to be exempt from certain provisions of the Code, as far as
concerns the West Coast lumber industry. The representative of
this group (Fairburst-(6 )-AA-4-150-151.) did not offer convincing
reasons why the standards to be observed by the West Coast in-
dustry should not be applicable to the small operators whom he
represented.
A group of wood package manufacturers objected at the hearing
to being included under the wood package division, largely for the
reason that they preferred to have their own code and consequent direct
access to the A4dministrator, instead of through the channels pro-
vided in t~he Lumber and Timber Products Code (Wilson-(9)-B-1-210 ;
212; 213). No good reason is apparent for excepting this group.
A somewhat similar situation was shown to exist in the wood-
working industries. WVhile 90 percent of the production in those
industries desire to participate in the present Code of Fair Competi-
tion, a few highly specialized wood-working establishments expressed
a wish to submit a separate Code (Smith-(7)-N-4-84). Adequate
grounds for negotiating a separate code for this small fraction of the
woodworking industry were not shown.
SCertain West Coas~t operators urged that exports should be exemnpt
from production control. The West Coast district ships over half
of all lumber exported. These exports constituted about 16 percent
of the entire production of the West Coast district in 1929 and about
18 percent in 1932. At least 40 percent of all West Coast mills share
in this business (Greeley-(6)-Y-5-141). No export item can be pro-
duced from t-he log without producing a substantial "side cut".






10

I On the average the "side cut ", which must be sold in the United
States, is m~ore than one third of the product of the log. Export
l'~ orders do not differ materially in volume, period of negotiation, or
I period of shipment from domestic water-borne business, and no
greater necesexty for separate treatment appears in case of export
t~han in case of domestic cargo business. No adequate showing of
the peculiarity of export busmess was made to warrant exemption
from production control. To enable domestic producers to meet
foreign prices, however, export business has been exempted in the
Code, Article IX (a) from the requirement of maintainig cost-
; protection prices.
In spite of the comparatively high degree of organization and una-
Snimity of opinion in the industries, it is evident that in some of the
Di.visions and Subdivisions proposed to be established under the Code,
there are a number of substantial, organized, minority groups. These
should be accorded reasonable and equitable representation in such
governing body of each Division or Subdivision as may be established.
While it is proper that minority organizations within a logical compet-
itive industry grouping should not be accorded the status of sepa-
rate entities, it is not proper that they be denied fair proportionate
representation in the Division of Subdivision governing body. This
has been accomplished in the proposed organization of the Lumber
Code Authority and should be accomplished in the Divisions and
Subdivisions.
11. Suggested Conditions of Approlual.--The lumber and timber
products industries clearly desire to cooperate in achieving the pur-
poses of the National Industrial Recovery Act. Theyv prepared their
r- Code with care and with the intention of increasing employment by
shortening hours, of expanding purchasing power by raising wages,
and of plaig the industry on a sound basis by providing for the
eliminat~iono trade abuses. These efforts deserve governmental
support.
It is my opinion, however, that maximum ~hours of labor should in
most instances be somewhat less than those proposed by the industries
themselves and that wage rates should begin at a somewhat higher
minimum. I: therefore recommend a uniform work week of 40 hours
as a maximumn in both camps and mills and.a minimum wnage schedule
of 23 cents per hour in the South and 42% cents an hour mn the West
Coast and western pine areas, writh properly adjusted gradations of
rates for other producing regions.
Other changes in the proposed Code which I regard as important
have been discussed in earlier paragraphs, and all proposed changes
from the Code as submitted by the industries are included in the
attached draft, which I recommend for your approval.
12. Findings.--The Assistant Administrator finds that:
(a) The code of the Lumber and timber products industries as
recommended complies in all respects with the pertinent provisions of
Title I of the National Industrial Recovery Act, including, without
limitation, subsection (a) of Section 7 and subsection (b) of Section
10 thereof ; and
(b) the National Lumber Manufacturers' Association, which sub-
mitted the Code, and the forty-five Divisional associations, listed in
the letter of transmittal, and concurring in the submission, impose






20

no inequitable restrictions on membership therein and are trulp
representative of the lumber and timber products industries, and
(c) the Code as recommended is not designed to promote monopolies
or to eliminate or oppress small enterprisers and will not operate to
discriminate against them, and will tend to effectuate the policy of
Title I of the National Industrial Recovery Act.
Respectfully submitted,
DUDLEY CATES,
Assistant Administrator.-















CODE OF FAIR COMPETITION FOR THE LUMBER AND
TIMBER PRODUCTS INDUSTRIES

AS RECOMMENDED BY THE ADMINISTRATOR AUGUST 18, 1933
Statement in Transmittal

The National Lumber Mlanufa~cturers Association, representing
manufacturers of lumber and timber products throughout the United
States, pursuant to the authority of the National Industrial Recovery
Act and for the purposes of eliminating unfair competitive practices,
reducing and relieving unemployment, improving standards of labor,
maintaining standards of quality, rehabilitating the lumber and tim-
ber products industries, bringing about sustained-yield forest muan-
agement and permanent sources of employment, conserving natural
resources, and otherwise effectuating the policy of t~he Act, hereby'
submits for the approval of the President the following Code of Fair
Competition for lumber and timber products industries.
By resolution of the Board of Directors July: 1, 193.3. Concurredi
in by the following Associa~tions:
American Walnut Manufacturers Association, Chicago, Ill.
Atlantic Millw~ork Institute, New York, N.Y.
L* California Redwood Association, San Francisco, Calif.
Douglas Fir Door Manufacturers Association, Tacoma, Wash.
Douglas Fir Plywood Manufacturers Associat~ion, Tacoma, Wash.
Eastern Woodwork Bureau, New York, N.Y.
Eastern Shook & Wooden Box MIfrs. Assn., Bost~on, Mass.
Egg Case Manufacturers Exchange, Chicago, Ill.
Hardwood Dimension Manufacturers Assn., Louisville, Ky.
Hardwood Manufacturers Institute, M~emphis, Tenn.
Indiana Hardwood Lumbermen's Assn. Indianapolis, Ind.
The Mahogany Association, Inc., New York, N.Y.
Maple Flooring Manufacturers Assn., Chicago, Ill.
Millwork Cost Bureau, Chicago, Ill.
National Door Mfrs. Assn., Chicago, Ill.
NaLtional Hardwood Lumber Assn., Chicago, Ill.
National Oak Flooring Mfrs. Assn., M~emphis, Tenn.
National Federation of Wooden Package Assns., Chicago, Ill.
National Assn. of Wooden Box M~frs., Chicago, Ill.
National Screen Assn., Chicago, Ill.
National Stained Shingle Assn., St. Paul, Mlinn.
National Woodwork A~ssociation, Chicago, Ill.
Northeastern Lumber Mlfrs. Assn., New York, N.Y'.
Northern Hemnlock & Hardwood Mfrs. Assn., Oshkosh, Wise.
Northern Pine Mfrs. Assn., Mlinneapolis, M~inn.
Pacific Northwest Box Association, Seattle, Wash.
Pacific Northwest Loggers Association, Seattle, Wash.
Pacific Veneer Package Association, San Francisco, Calif.
Plywood Package Institute, New York Cityl.
Phluippine Mahogany Mfrs. Import Assn., Inc., Los Angeles, Calif.
Southern Cypress Mfre. Assn., Jacksonville, Flat.
Southern Pine Association, New Orleans, La.
Southern Hardwood Box Association, Chicago, Ill.
Southeastern Box & Shook Mfrs. Assn., Charlotte, N.C.
(21)
9673--33----1







22

Southern Woodwork Assn., K~noxville, Tenn.
Standard Container Mfrs. Assn., Jacksonville, Fla.
The Veneer Association, Chicago, Ill.
Washington-Oregon Shingle Assn. Seattle, Wash.
West Coast Lumbermen's Assn., S~eattle, W~ash.
Wooden Box Mfre. Assn. of New York and New Jersey, New York City.
Western Pine Association, Portland, Oreg.
Wholesale 8ash and Door Assn., Chicago, Ill.
Wirebound Box Mfre. Assn., Chicago, Ill.
Pacific Division-National Association of Wooden Box Manufacturers, San
Francisco, Calif.
Inland Empire Division National Association of Wooden Box Manufacturers,
Wenatchee, Wash.
and with the further concurrence of
National-American Wholesale Lumber Assn., Inc., New York, N.Y.
National Retail Lumber Dealers Assn., Washington, D.C.

CODE OF FAIR COMPETITION

ART. I. Purpos~e.--This is an undertak~ing in industrial self-govern-
ment under such public sanctions as are necessary to carry out in the
lumber and timber products industries the purposes of the National
Industrial Recovery Act. It is t~he declared purpose of the lumber
and timber products industries a~nd of the adherents to this Code, to
reduce and relieve unemployment in szid industries; to improve the
standards of labor therein; t~o maintain a reasonable balance between
the production and the consumption of lumber and timber products;
to restore the prices thereof to levels which will avoid the further de-
pletion and destruction of capital assets; and to conserve forest re-
sources and bring about the sustained production thereof.
ART. II. Defin~itions.--(a) Lumber and Timber products" as used
herein is defined to include (1) logs, poles and piling; (2) sawn Inmber
and products of planing mlills operated in conjunction with sawmills;
(3) shingles; (4) w~oodwrork (mlillworki) including products of planing
mills operated in conjunction with retail lumber yards; (5) hardwood
flooring; (6) veneers; (7) plywood; (8) kiln dried hardwood dimension;
(9) lat.h; (10) showed boxes, shook and crates; (11) plywood, veneer
and wcirebound packages and containers; and (12) in respect of any
Division or Subdivision additional timber products as enumerated in
Schedule A.
(b) Person as used herein includes, without limlitation, any in-
dividual, firm, partnership, corporation, association, trust, trustee, or
receiver subject to the jurisdiction of this C'ode.
(c) DivisionsI ad Subdivisions as used herein refer to the
several administrative units of the lumber and timber products indus-
tries which are established and are defined in Schedule A hereof. The
Divisions and Subdivisions initially established are as follows, pro-
vided, howrevrer, that any Division or Subdivision, as initially estab-
lished herein, or a~s may be established hereafter, or any substantial
group in such Division or Subdivision of the industry as herein de-
fined, may be exempted fromt t~he provision of this Code by the Presi-
dent or by the Administrator under the provisions of Article XII of
this Code:






23

Cypress Division.
Hardwood Division:
Appalachian and Southern Hardwood Subdivision.
Mahogany Subdivision.
Philippine M~ahogany Subdivision.
Walnut Subdivision.
Northern Hardwood Subdivision.
North Central Hardwood Subdivision.
Northeastern Hardwood Subdivision.
Northern Hemlock Division.
Northern Pine Division.
Redwood Division.
Northeastern Softwood Division.
Southern Pine Division:
Southern Rotary Cut Lumber Subdivision.
West Coast Logging and Lumber Division:
Douglas Fir Plywood Subdivision.
Douglas Fir Door Subdivision.
Western Pine Division.
Wood work Division:
Stock M~anufacture~rs Subdivision.
Wholesale Distributor~s Subdivision.
Special Woodwork Subdivision.
Wooden Package Division:
Sawed Box, Shook, Crate, and Tray~ Subdivision.
Plywood Package Subdivision.
Standard Container Subdivision.
Pacific Veneer Package Subdivision.
Egg Case Subdivision.
W'irebound Pa~cka~ge Subdivision.
Veneer Fruit and Vegetable Pa~ckage Subdivision.
Red Cedar Shingle: Division:
Stained Shingle Subdivision.
Oak F'looring Division.
Veneer Division.
Maple Flooring Division.
Hardwood Dimension Division.
Ana. III. Administration.--(a) The applican t'organizations shall,
with the approval of the President, establish and empower a suitable
agency named "Lumber Code Authority, Incorporated hereinafter
referred to as the Authority to administer this Code in conformity
with the provisions of the National Industrial Recovery Act under
the authority of the President. Said agency shall be a body inc~or-
porated not for profit. Provision shall' be made for membership of
representatives of the principal divisions of the industries, and pro-
a~sion shall also be made for three nonvoting members to be appointed
by and to act as advisory representatives of the President.
(b) The Authority shall issue and enforce such rules, regulations,
and interpretations, and impose upon persons subject to the juris-
diction of this Code such restrictions as may be necessary to effectuate
the purposes and enforce the provisions of this Code.
(c) The Authority is authorized and instructed, with respect to the
Rules of Fair Trade Practice set forth in Schedule B attached hereto,
to devise and apply such further requirements or prohibitions, includ-








ing unfair trade practices, applicable to the industries, which have
been specifically condemned by the Federal Trade Commission, as
may~ conduce to the orderly operation of the lumber and timber
products industries, not inconsistent with the provisions of the
NVational Industrial Recovery Act, and with due consideration of the
rights of employees in said industries and of the consumers of the
products of said mdustries. Such requirements or prohibitions, when
adopted by the Aut~hority, shall be submitted to the President for
approval a~nd if approved by him shall then be deemed to be supple-
ments to a~nd amendments of Schedule B of this Code.
(d) The Aut~hority may establish Divisions and Subdivisions of
the industries and shall designate appropriate agencies, and the
governing bodies thereof, for the admimstration of this Code in each
Division and Su division ; the Authority may delegate to said agencies
all necessary power and authority for the administration of thus Code
within the Divisions and Subdivisions, including the adoption of
Division and Subdivision code provisions within the scope of the
power granted under this Code and not inconsistent with it; but the
Authority shall reserve the power and duty to enforce the provisions
of this Code. The agencies initially so designated and the governing
bodies thereof are set forth in Schedule A.
(e) The governing body of the agency of each designated Division
or Subdivision shall be fairly representative of each group, including
any substantial minority group within the Division or Subdivision,
classified by regions, types of manufacturer, or other appropriate
considerations. The Aut~hority shaHl have t~he power and duty to
establish and maintain the representative character of such governing
body and on t~he failure of any designated agency to be representative,
as prescribed herein, the Aut~hority shall, unless the designated agency
shall comply with such instructions as the Authorityv may give,
remove such agency and designate or cause to be designated a
different agency for such Division or Subdivision.
(f) The Authority shall coordinate the administration of this Code
with such codes, if a~ny, a.s mlay affect any division or subdivision of
the lumber and timber products industries or any related industry,
with a view to promoting joint a~nd harmonious action upon matters
of common interest; it shall receive, and, if it shall approve, shall
present for the approval of the President, any proposals for supple-
mentary provisions or amendments of this Code or additional codes
applicable to the lumber and timber products industries or the
various Divisions and Subdivisions thereof with respect to wages,
hours, trade practices, or a.ny other matters affecting such industries
or any Division or Subdivision thereof. Upon approval by the P~res-
ident, such supplementary provisions or amendments of this Code
or such additional codes shall thereupon have full force and effect and
shall be considered as integral parts of this Code.
(g) The Authority shia.11 admit or cause to be admitted to partici-
pation in any Divlision or Subdivision to which he belongs, any
person on terms of equality with all other persons partic~ipatmig
therein.
Ann. IV. Code Reports and Fees.--In order that the President may
be informed of t~he extent, of observance of the provisions of this Code
and of the extent to which the declared policy of the National Indus-
trial Recovery Act as stated herein is being effectuated in the lumber






25

and timber products industries, the Authority shall make such
reports as the Administrator may require, periodically, or as often as
he mary direct, and each person shall" make such sworn or unsworn
reports to the Authority, periodically, or as often as it may direct,
on wages, hours of labor, conditions of employment, number of
employees, production, shipments, sales, stocks, prices, and other
matters pertinent to the purposes of this Code as the Authoriy may
Srequire~, and each person subject to the jurisdiction of this Code and
acacepting the benefits of the activities of the Authority hereunder
shall pay to the Authority his proportionate share of the amounts
necessary to pay the cost of assembly, analysis, and publication of
such; reports and data, and of the maintenance of the said Authority
and its activities. Said proportionate share shall be based upon
value of sales or footage of production, as the Authority may pre-
scribe for each Division or Subdivision. The Authority may con-
duct such investigations as are necessary to discharge its duties
hereunder.
Ana. V. Labor ProvYisions.--(a) Employees shall have the right to
organize and bargain collectively through representatives of their own
choosing, and shall be free from the interference, restraint, or coercion
of employers of labor, or their agents, in the designation of such repre-
sentatives or in self-organization or in other concerted activities for
the purpose of collective bargaining or other mutual aid or protection.
(b) No employee and no one seeking employment shall be required
'as a condition of employment to join any company union or to refrain
from joining, orgamizmg, or assisting a labor organization of lus own
choosing.
" (c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
(d) No individual under 18 years of age shall be employed, except
that boys 16 years and over may be employed in the WYooden Package
Division and in nonhazardous occupations during school vacations or
if there are no wage earners of 18 years or over in their families.
Ana. VI. Hours of Labor ---(a) General Provisions and Exceptions:
(1) No employee shall be permitted to work for two or more employ-
ers for a longer period in any week than specified herein for a single
-employer.
(2) Exceptions to the standards in respect to ma.xuimum hours of
labor specified herein are authorized as follows:
A. Executive, supervisory, traveling sales force, and camp cooks.
B. Regular employment in excess of such standards, for employees,
such as watchmen, firemen, and repair crews, where required by the
nature of their workr, for not more than 10 percent of the employees in
any operation, but time and a balf shall be paid for weekly overtime.
C. Temporary employment in ca.se of emergency.
D. Seasonal Operations.-Seasonal operations are defined as those
which on account of elevation or other physical conditions or depend-
ence upon clima.tic factors are ordinarily limited to a period often
months or less of the calendar year.
The administrative agency of a Division or Subdivision may author-
ize employment in a seasonal operation for a maximum number of
hours not exceeding 4'8 hours in any week, with the exception of parts
of an operation depending on climatic conditions, such a~s stream





26

driving and sled hauling, in which a greater excess may be authorized;
provided, that the average employment in any seasonal operation in
any calendar year shall not exceed the standard schedule.
E. Manufacturers of wooden packages for perishable fruits and
vegetables may be authorized by the Aidministrative Agency of the
Wooden Package Division to depart from the standard schedule of
maximum hours applicable to said manufacturers for a period not to
exceed four weeks for any one crop, when necessary to furnish pack-
ages for any perishable crop; provided that the average employment
of any individual in any calendar year shall not exceed the standard
schedule.
(b) Subject to the foregoing exceptions, the maximum hours of
employment in the respective Divisions and Subdivisions shall be
40 hours per week.
ART. VII. Mdinim~um W'ages.--(a) General Provisions:
(1) The minimum compensation for workers employed on piece-
work or contract basis shall not be less than the minimum wage
hereunder for t~he number of hours employed.
(2) The existing amounts by which minimum wages in the higher
paid classes, up to workers receiving $30.00 per week exceed minimum
wages in the lowest paid classes, shall be,maintained.
(3) Charges to employees for rent, board, medical attendance, and
other services shall be fair.
(b) Subject to the foregoing provisions, the minimum wages which
shall be paid by persons under the jurisdiction of this Code shall not
be less than 40 cents per hour, unless in any Division or Subdivision
of the industries the prevailing hourly rate for the some class of em-
ployees on July 15, 1929, as determined by the Administrator on
statistical evidence, was less than 40 cents per hour, in which case the
rate shall not be less than said prevailing hourly rate so determined,
plus fifteen percent. if said hourly rate on July 15, 1929, was less than
30 cents per hour, provided, however, that for wages per hour be-
tween 20 cents and 29 cents, inclusive, on July 15, 1929, with wages
of less than 20 cents per hour on that date being considered as 20
cents, the percentage of increase shall diminish one and one half
percent for each cent that wages per hour exceeded 20 cents, in
accordance with the following schedule:

Wages per Increase under b wagan r
hour, July proposed pooe
15, 1929 schedule shedue

Cents Percent Cenia
20 15 23
21 13r 24
22 12 24. 5
23 10% 25. 5
24 9 26
25 7%1 27
26 6 27. 5
27 4%28
28 3 29
29 29. 5
30 0 30







I:_27


; (c) No minimum rate of wages for any Division or Subdivision
; shall be less than that proposed for such Division or Subdivision by
the applicant industries in the Code filed July 10, 1933.
(d) inium rtesof wgesso determined in the respective
SDivisions abnd Subdivisions salb sflos

Division Cent pr Division Cent soper

Cygpress...... .....- -- --- 24 Oak Flooring:
Hardwood: Appalachian___ .... ..... 29. 5
Appalachian Hlardwood_ 28. 5 Southern..... ._ __ 26
B~ southern H~ardwood. ._ _- 24 Maple Flooring_ ............ 30
Philippine Mahogany .......- 45 Hardwood Dimension:
Nolrthern Hardwood: Southern Hardwood Area_ 24
SMills & Factories _--..... 30 Appalachian Hardwood
Loggang ____ ___ ______ 27 Area._________________- 28. 5
.NotCerlHrdod Northern Hardwrood Area.. 30
Mills & Factories..~- 32. 5 Northeastern Hardwood
Logging __ 32. 5 Area............. .".... 30
North Eastern Hardwood: North Central Hardwood
i:Mills &E Factories._ .__ 30 Area ................._ 32. 5
N ogiengHe lo k: 7 Mahogany Subdivision: o
Mills & Factories... _~- 30 hoei, glew York City & 2
Logger ing ......2 Zone 2, Northern Cities... 35

Logging .._ _____ ... ... 28. 5 Zone 5, Southern Rural ___ 25
Redwood ___ ... 35 o 5 ute Rrl_ 2
North Eastern Softwood: Walnut Subdivision: D
Mils & Factories... ..... 30 Zone 1, New York City &
Logging___......... ..... 27 Chicago............. .- 42. 5
Southern Pine.. ... _.. .. 24 Zone 2, Northern Cities... 35
Southern Rotary Cut...... --.- 23 Zone 3, Northern Rural_.. 30
i"West Const: Zone 4, Southern Cities_ 30
Logig _______- 42. 5 Zone 5, Southern Rural _._ 25
Lumber Manufacture ..- 42. 5 Veneer Division: *
Fact~ories--..~- ....... 40 Zone 1, New York City &
Fir Door.. .. ....... 40 Chicago.. _____- .... 42. 5
Fir Plywood.._ .......... 40 Zone 2, Northern Cities_.. 35
Western Pine (Except Arizona, Zone 3, Northern Rural___ 30
New Mexico and Colorado Zone 4, Southern Cities.... 30
South of 380 north latitude): Zone 5, Southern Rural__ 25
Logging .. -__ _. ... 42. 5
Mills .._____ _... ... 42. 5 WOODWORK
Factories .._ __-- ..... 40. O
Arizona, New Mexico, and Col- Division A--Stock Manufac-
orado (South of 380 North turers Subdivision:
Latitude) _____ ______....... 24 Zone I so __ 25
Red Cedar Shingle_ _......... 42. 5 Zone 2_ .... .. ...___ 30
Stained Shingle..........._ 40 Zone 3.-- ... ....... .- 32. 5
a Mahogany and Walnut Subdivision and Veneer. Division Zones are as follows:
Newr York: Any establishment located within ten miles of the limits of the City of New Y'orkr.
Chicargo: Any establishment located within ten miles of the limits of the City of Chicago.
Cities:. Communities over 75,00[) population, including establishments w ithbin ten miles of the city limits.
Rural: Communities of less than 75,000 population.
South: Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma,
flouth Carolina, Tennessee, Texas, Virginia.
North: Balance of the United States.
re The Zones and territory under Woodwork are defined as follows:
Eano #1 includes the states of Florida, Georgia, South Carolina, North Carolina, Virginia, Alabamat,
Tennessee, Mississippi, Louisiana, Arkansas, New Mexico, Arizona and Texas (IS states).
Zone #2 includes the states of Maine, New Hampshire, Vermont, Massachusetts, Rhode island, Conneo-
tiont, New York, New Jersey, Delaware, District of Columbia, Maryland, West Virginia, Pennsylvania,
Ohio, Kentucky, Indiana, Mcichigan, Illinois, Wisconsin, Minnesota, Iowa, Missouri, K~ansas, Oklahoma,
Nebraska, Bouth Dakota and North Dakota (26 states and District of Columbia).
Zone #3 includes the states of Oregon, Washington, California, Nevada, Idaho, Utah, Colorado, Wyo-
ming and Montana, but excepting western Oregon and Washington, which are included in the code of
the West Coast Lumbermen's Assn. (9 states).
Metropolitan New York includes the territory within a 3P-mile radius of the City Hall on Manbattan
Island in the City of New York.
Chicago includes the territory within the bounds of Cook County, minois.







28

WOODWORK--COntinued W OOD WORKs-contin ued
Division Cens uper Divisio pa
Division~ B--Wholesale Distribu- Division COpecial Woodwork
tors Subdivision: Subdivision:
Zone 1___............... 25 Zone 1.................. 25
Zone 2: Zone 2:
Metro. N.Y. City and Metro. N.Y. City and
Chicago........... 45 Chicago_.......... 50
East of Ohio, except East of Ohio, except
N.Y'. City......... 35 N.Y. City. ....... 40
Other territory ....... 30 Other territory....._- 30
Zone 3- --.............. 32. 5 Zone 3.................. 32. 5

WOODEN PACKAGE
DIVISION Cents per Hour
A. Sawed box shook, crate, and tray subdivision:
a. Eastern Shook and Wooden Box group (Maine, Mass., Vt.,
.N.H., Conn., and R.I.).................................. 30
b. New~ York, New Jersey1 Shook group (New York-Metropolitan
a re al . . . . . 3 5
c. Southeastern Box & Shook group (Va., North & South Carolina,
Ga., Florida, Eastern Tenn., & Eastern Ala.).............. 23
d. Southern Hardwood group (Louisiana, AlaL., Eastern Texas,
Arkansas, Southeastern corner Missouri, Southern end of
Illinlois, Western Tennessee & Mi~ssissippi.................. 23
e. Northwest Shook group (Wis., Minn., N5.Dak., S.Dak., Winne-
bago Co., Ill., Nort.hern anid East~ern Iowa, Northern Peninsula
of M ich .) .. ... ... .. ...... ...... ...... ...... 30
f. Inland Empire group (Mlontana, Idaho, Eastern Oregon,
Eastern and Central WTashingt~on)___ ................ ..... 40
g. Pacific Wooden Box group (California, Oregon, Utah, Nevada,
New Mexico, Arizona, and Colorado):
California, Oregon, Utah, Nevada and Colorado (North of 380
N orth Latitude) __.... __ ............ ......... .- 40
New Mexico, Arizona & Colorado (Provisional) (South of 380
North Latitude)........... ..........................- 23
b. Pacific Northwest Wooden Box group (Western Washington
and Western Oregon a~nd Alaskia')......................... 40
i. Northerni Box and Shook group (New York, excluding Metro-
politan N.Y., New Jersey, excluding Metropolitan N.J.,
~Delaware, Penna., Ohio, Ind., Southern Peninsula of Mich.,
Illinois except Winnebago Co. and extreme south at mouth of
Ohio river, Missouri except Southeast corner, Kansas,
Nebraska, Southern and Western lowas)................... 30
j. Southern Box and Shook group: (Maryland, W.Va., and
Southern Pine and Softwood section of Tenn., western Ala-
bama, La., Arkansas, Texas, and Oklahoma)........... --- 23
B. Plywood Package Subdivision:
(South of Delaware River, the Southern line of Pennsylvania, the
Ohio River and the Southern line of Missouri, Karnsats, Colorado,
and the Colorado River).______ ._________ ............... 23
North of above line... .__ .._ ..__ ..........- 30
C. Southeastern Veneer Container Subdivision: (Florida, Georgia, Ala-
bama)........ ...................... ... .. ......... 23
D. Pacific Veneer Container Subdivlision: (California, Oregon, Washing-
to n ) .. . . . . . 4 0
E. Egg Case Subdivision:
(Florida, Georgia, So. Carolina, No. Carolina, Virginia, Alabama,
Tennessee, Missiasippi, Louisiana, Texas, Maryland, W. Vir-
ginia, Kentucky, Oklahoma, Arkansas, Southeastern Mo., and
Ohio River points)................................ ........ 23
All other territ~ory......... .................................. 30-






29

WOODEN PACK AGE--CODURUlld
DIVISION Cents per Hour
F. Wirebound Box Subdivision:
(Floridat, Georgia, South Carolina, North Carolina, Virginia, Ala-
bama, Tenn., Miss., La., New Mexico, Ariz., Texas, Maryland,
W.Va., Ky., Okla., Arkansas, and Ohio River points).... ..... 23
All other territory. .._ __. .._ .. 30
G. Veneer Fruit and Vegetable Package Subdivision:
Southern Group: (North Carolina, South Carolina, Kentucky,
Tennessee, Mississippi, Louisiana, Alabama, Texas, Arkansas,
Georgia, Florida, Virginia, and nine counties Eastern Shore of
Maryland and Delaware)--- .- _- _- _- _~ _- .. _~ ___ 23
Northern Group: New~ York, New Jersey, M~idwest, and M~ichigan
g ro u p s_..._ .. .._.... ... ... ... .... -- -- -- 30
In the Wooden Package Division minimum wage rates below those
shown in the schedule shall be permitted in tlhe case of boys a~nd girls
loes than 20 years of age, provided that not more than 20 percerit of
the total number of employees of any one plant shall be so classified;
and provided further that the differential shall not exceed 3 cents if
the rate after subtracting t~he differential is 27 cents or less, but in
no case shall the differential exceed 5 cents.
AerT. VIII. Control of Prod~ucion..-(a) To effectuate the declared
purposes of this Code in respect of maintaining a reasonable balance
between the production and t~he consumption of lumber a.nd timber
products and to assure adequate supplies thereof, the Aut~hority
ishll determine, and from time to time revise, not less~ frequently
than each three months, estimates of expected consumption, includ-
ing exports, of lumber and timber products of each Division and Sub-
drivsion; and based thereon it is empowered to establish, and from
time to time revise. production quotas for any Division or Subdivision
of the lumber a-ndl timber products industries. Allotments within
each Division a~nd Subdivision, for the persons therein, shall be made,
subject to the supervision of the Authority, by t~he agencies designated
by It. Said quotas as between such Divisions or Subdivisions shall
be in proportion to the shipments of the products of each during a
representative recent past period to be determined by the Aut~hority;
but the Authority may modifyv said proportions if warranted by evi-
dence. In case of Divisions or Subdivisions, the ra w mlat~erial of
which is imported, the quotes and allotments may be in terms of
imports, so far as may be consistent, with the provisions of Section
7 (e,) of the Na~tional Industrial Recovery Act.
(b} Each person in operation shall be entitled to a~n allotment.
Each person known to a~ny Division or Subdivision agency to be in
operation sh~all be registered! by such agency immediately and shall be
assigned~ an allotment. The agency shall also immedia tely give public
notice reasonably adapted to reach all persons operating or desiring
to operate, stating the date on which the allotments wil1 be determined;
an~d aLny person desiring to operate who shall give the agency written
notice of such desire ten days before the allotment date, supported.
by acceptablee evidence of ability to operate, shall be registered by
the agency and assigned, a~n allotment. Any person so registered shall
be deemed an "eligible person for the purposes of this Article.
(0) The; allotment for each eligible person shall be determined
fnees t~imre to time for a specified period not exceeding three (3)






30

months and, except as may be permitted under the provisions of ;
section (d) hereof, shall be as follows:
(1) That proportion of a specified percentage, determined as pro-
vided in sections (d) and (e) of this Article, of the Division or Subdi-
vision quota which his greatest average hourly production in the
hours operated during any three calendar years since December 31,
1924, is of the aggregate of such hourly production of all eligible per-
-sons within the Division or Subdivision.
(2) That proportion of a specified percentage, determined as pro-
vided in sections (d) and (e) of this Article, of the Division-or Subdi-
vision quota which his greatest average yearly production for any
three calendar years since .December 31, 1924, is of the aggregate of
such yearly production of all eligible: persons within the Division or
Subdivision.
(3) That proportion of a specified percentage, determined as pro-
vided in sections (d) and (e) of this Article, of the Division or Subdi-
vision quota which the greatest average number of his employees
during any three, calendar years since December 31, 1924, is of the
aggregate of such number of employees of all eligible persons within
the Division or Subdivision.
(4) That proportion of not to exceed ten (10) percent of the Divi-
sion or Subdivision quota which the amount of taxes paid by him,
-except Federal taxes, taxes on ore, coal, petroleum, ships, retail
yards, and timber not set apart for the operation, during the next
preceding calendar year is of the total amount of such taxes paid by
all eligible persons within the Division or Subdivision.
(5) That proportion of not to exceed fifteen (15) percent of the Divi-
sion or Subdivision quota which the quantity of reserve standing
timber allocated to his operations within said Divi'sion or Subdivi-
sion, and at the time the allotment is made, owned by him in fee or
under contract is of the total quantity of such reserve standing tim-
ber owned in f~ee! or under contract by all eligible persons within the
Division OF SUuldvisioR.
(d) (1) Exceptions to or changes in any allotment thus established
shall be made: only for special, accidental, or extraordinary circum-
stances, or, in any Division or Subdivision, for other factors peculiar
to a limited group of operations. Exception may be made only on
application to the designated Division or Subdivision agency by an
eligible person who must submit evidence in support of his applia
tion, and the exception may be granted only upon a published finding
and statement of reasons therefore.
(2) A person conducting seasonal operations as defined in Article
VI (a) (2) (D) hereof shall be entitled, on application to his Division
-or Subdivision agency, to produce during his period of operation not
-only amounts allotted to him during his period of operation but also
amounts allotted to him under section (c) hereof since the termination
of his previous operating period.
(3) In the case of any person (a) who produced during less than
three calendar years since December 31, 1924, and before December
31, 1930, or (b) who is entitled to an allotment for operation of new,
additionala, or restored facilities, which were not in operation for such
three calendar years, or (c) for whom for any other reason such three
calendar years are not reasonably representative of his present circum-
stances, his average hourly production, his average yearly production,






31

and h~is average number of employees shall be determined by the
Division or Subdivision agency on an equivalent basis by comparison
with substantially equal facilities already established and in like
regions or conditions.
(4) On application of a Division or Subdivision, the Authority
may authorize the allotment of production therein on any one or
minore of the bases provided in subsections (1), (2), and (3) of section
(c ~) hereof in such relative proportions as the Authority may approve;
and ~including or not the bases, or either of them, provided in sub-
sections (4) and (5) of said section (c).
''(e) In the absence of an approved application from any Division or
. ubdivision for the assignment of allotments under the provisions of
subsection (4) of section (d) hereof, the Authority may direct that
arl~lotments within said Division or Subdivision be assigned in atccord-
a~nce with the provisions of section (c) in the following relative pro-
portions:
Subsection (1), hourly production, 40 percent;
Subsection (2), yearly production, 30 percent;
Subsection (3), number of employees, 15 percent;
Subsection (4), taxes paid, 5 percent;
Subsection (5), standing timber, 10 percent;
unless the Division or Subdivision shall elect to accept the average
relative proportions of the Divisions or Subdivisions whose allotments
have been theretofore approved.
(f) The basis for determination of Division and Subdivision quotas
and of individual allotments and any revisions thereof, all quotas, all
allotments, and all appeals therefrom and all decisions on appeals
shall be published.
(g) Allotments from two or more Divisions or Subdivisions to the
same person shall be separate and distinct and shall not be inter-
chbangeable. Allotments shall not be cumulative except as authorized
in specific cases under section (d) (I) of this Article, or in cases of
seasonal operations of a Division or Subdivision under section (d)
(2) of this Article, and shall not be transferable except as between
operations under the same ownership within the same Division or
Subdivision.
.(h) Whenever in the case of any eligible person it shall be necessary,
in order to accept and execute orders for export, to have an addition
to his regular allotment, provision for such necessary excess shall be
made by the Division or Subdivision agency, provided that any excess
above his allotment shall be deducted from his subsequent allotment
-or allotments.
(i) The Authority may modify, or cause to be modified, production
. quotas and allotments determined hereunder, and the bases therefore,
in such manner and to such extent as may be necessary to effectuate
the provisions of the Code in respect of the conservation and sustained
production of forest resources. Such modification shall not be made
effective prior to the next succeeding allotment date.
(j) The basis of allotments as provided in sections (c), (d), and (e)
hereof is tentative and is subject to revision. When in the judgrment
of the Authority revision of the bases of allotments is desirable,
whether by changing the proportions of the factors in determining
allotments enumerated in Section (c), subsections 1, 2, 3 4, and 5, of
this Article, in accordance with the procedure established in sections








(d) and (e) hereof, or by the addition of other factors, consideration
shall be given to the inclusion of practicable and equitable measures,
subject to the approval of the President, for increasing allotments of
persons whose costs are below the weighted average defined in section
(a) of Article IX.
(k) The Authority, as promptly as practicable after its action pur-
suant to Art. X hereof, shall submit for the approval of the President
appropriate changes in the bases of allotments.
(1) Except as otherwise provided in section (h) of tlis Article, no
person shall produce or manufacture lumber or timber products in
excess of his allotment. If any person shall exceed his allotment the
Division or Subdivision agency shall dimlinish the subsequent allot-
mlent or allotments of the offender in an amount. equal to such excess.
(m) The Authority shall issue interpretations and shall promulgate
rules and regulations necessaryI for the enforcement of this Article, to
prevent evasion andi secure equitable application thereof, and assign
quotas t~o each Division and Subdivision which shall become effective
on t~he dates specified by the Authority. Each Division and Subdivi-
sion shall assign allot.me'nts to all eligible persons effective on the dates
specified by the Authorityu.
Interim A-rticle.--Pending the! effective date of placing Article VIIIL
or any part thereof in execution in any Division or Subdivision, the
Authority may authorize the designated agency of such Division or
Subdivision to assign to eligible persons production allotments in
hours of allowa.ble operation.
Awr. IX. Cost Protection.-(!a) WIhenever and so long as the
Authority determines that it will contribute toward accomplishment.
of the declared purposes of the Code, and whenever it is satisfied
that it is able to determine cost of production as defined in this
section (a), the AIut.hlority is authorized to establish and from time
to time revise minimum prices f.o.b. mill, t~o protect the cost of pro-
duction of items or classifications of lumber and timber products..:~~k~D~IU~be~~

maintenance of free competition among species, Divisions, and Sub-
divisions, and with the products of other industries and other coun-
tries, and t~o the encouragement of the use of said products; and except,
for export sales shall be not more than cost of production, determined
as provided in this section (a), nor less than such cost of production
after deducting the capital charges specified in items 11 and 12 (b)
of this section (a).
The current weighted average cost of production of persons in:
operation mna Division or Subdivision, or where necessary mna group
of persons within a Division or Subdivision, as defined by the Author-
ity, shall be established by uniform accounting practices, and shall
include--
1. Wages.
2. MTaterials and supplies.
3. Overhead and administration, including trade-association dues
and Code fees.
4. Shipping, including grading and loading.
5. Selling, not including advertising or trade promotion.
6. Maintenance.
7. Insurance, including compensation and employee insurance, but
not including insurance on standing timber.








8. Taxes, including: taxes on timber tributary to and allocated to
an existing mill or logging operation, not to exceed a twelve-year
I supply therefore.
S9. Interest paid on indebtedness representing plant, facilities, and
~working -capital necessary for mills actually operating or capable of
.oaperating, including mills, equipment, logging facilities, docks, in-
ventory, accounts receivable, and timber tributary to and allocated
to any existing mill or logging operation, not to exceed a twelve-yrear
supply therefor.
10. Discounts, claims paid, and losses on trade accounts.
g1. Depreciation: On stra~ight-line method, and based on the fair
irmine or the cost, whichever is lower, on operating muls and on mill
and logging equipment, including mills and equipment capable of
oper~ation, plus amortization of investments in logging railroads,
clocks, and other logging and plant facilities.
12. *Raw material: (a) L~ogs, flitches, lumber, and other partially
manufactured material purchased, at actual cost, and standing timber
cut under contract of purchase, a~t actual cost.
(b) Standing timber carried in capital account, cut for operations,
~at fair enirrent value to be determined by the Administrator, without
regard to greater original c~ost,,higher book value, or accumulated
carrying charges.
13. Conservation and Reforestation: (a) Costs of protection of
timbered and cut-over lands, including fire protection and slash
disposal, and protection from insects and disease.
(b) Additional costs when incurred under instructions from the
Authority, in such an amount as is warranted by market conditions,
,; 'to be specifically devoted to timber conservation and reforestation in
accordance with regulations prescribed by the Authority, up to the
amount estimated by the Authority to be necessary to reproduce the!
eqrivalenrt of the timber converted.
(b) UJntil such time as the Authorityv shall havre formulated and
secured the general application by the several Divisions and S~ub-
divisions of methods of accounting by which iteml 11 of section (a)
hereof may be accur~ately ascertained, said item may not be included
in the determination of cost of production for the purposes of this
Article.
S(c) Cost~ of production for each species, determined as provided in
section (a), including or not including as the case mlay be, or in whole
or in patrt, capital charges for stumpage and depreciation, shall be
allocated by the Authority to the several items or classifications of
lumber or other products thlereof for which minimum prices a~re estab-
lished, in proportion to their relative market prices over a representa-
tive period. Such allocation may be changoed by the Authorityv from
tfime to ~time as may be found necessary to avoid shortages or excessive
accumulations, within any Division or Subdivision of particular
items or classifications of lumber and timber products; but the
weighted. average minimum price of all items and classifications for
each species shall not be more than cost of production as determined
in section (a) nor less than said cost after dedulcting the capital charges
-specified in items 11 and 12 (b) of said section (a).
(d) In determining minimum prices for any Division or ISubdivision
~the Authority shall establish equitable price differentials for productss








below accepted standards of quality, as prescribed~ by the authloritfy,
such a!: the products of some small mills.
(e) No person shall sell or offer for sale hlunber or timber products
upon which minimulm prices have been established at prices less than
those so established. No person shall sell or offer for sale lumber or
timber products to wholesale or other distributors who have been
found by thle Administrator to have violated any of the provisions of
the Rules of Fair Trade Practice incorporated in this Code as Sched-
ule B, except upon such terms and conditions as the Administrator in
accordance with law shall prescribe.
(f) No person shaUl sell or offer for sale nonstandard grades, sizes,
dimensions, or classifications of lumber or timber products for the
purpose of evading the provisions of this Article.
(g) In the case of imported lumber and timber products, minimum
prices for domestic sale shall be determined by the A~uthority, and
such minimum prices shall be equivalent to the milnimum .prces
determined and approved for the same or similar or competing stems,
grades, sizes, and species of lumber and timber products of domestic
production.
(h) The Authority shall secure current information concerning the
competition in domestic markets of imported lumber and timber
products, and if it shall find that such products are being imported
mto the United States in substantial quantities or increasingratio
to domestic production and on such terms or under such conditions
as to render ineffective or seriously to endanger the maintenance of
this Code, it shall complain to the President pursuant to the provi-
sions of Section 3 (e) of the National Industrial Recovery Act and
petition for suitable restrictions on the importation of such lumber
and timber products.
(i) The Authority shall issue interpretations and shall promulgate
rules and regulations necessalry for the enforcement of this Artxcle,
to prevent evasion and secure equal application thereof.
(j) Minimum prices established in accordance with the provisions
of this Article shall become effective ten (10) days after publication
thereof by the Authority.
Awr. X. Consbervation and~ Szcstained Production of Forest Resoura~ces.--
The applicant industries undertake, in cooperation with public and
other agencies, to carry out such practicable measures as may be
necessary for the declared purposes of this Code in respect of conser-
vation and sustained production of forest resources. The applicant
industries shall forthwith request a conference with the Secretary of
Agriculture and such State and other public and other agencies as-
he may designate. Said conference shall be requested to make to
the Secretary of Agriculture recommendations of public measures.
with the request that he transmit them, with his recommendations,
to the President; and to make recommendations for industrial action
to the Authority, which shall promptly take such action, and shall
submit to the President such supplements to this Code, as it deter-
mines to be necessary and feasible to give effect to said declared
purposes. Such supplements shall provide for the initiation and
administration of said measures necessary for the conservation and
sustained production of forest resources, by the industries within
each Division, in cooperation with the appropriate State and Federal
authorities. To the extent that said conference may determine that






35

said measures require the cooperation of federal, state, or other public
Agencies, said measures may to that extent be made contingent upon
(mch cooperation of public agencies.
: Ana. XI. Special Ag-reements.--Voluntary agreements, or proposed
voluntary agreements, between and among persons engaged in the
logging of timber or the production and distribution of lumber and
tiberr products, or between and among organizations or groups in
the lumber and timber products industries, or in which such persons,.
organizations, or groups propose to participate, proposed to be sub-
mat~ted to the President for approval under Sec. 4 (a) of the National
blustrial Recovery Act, shall not be in confict with the provisions
of 'Fthis Code or with any approved rule issued thereunder. Such
agreements or proposed agreements shall be submitted to the Au-
thority and if not disapproved by it within thirty days as being in
confict with the provisions of this Code, they may thereafter be sub-
mitted to the President for approval; but no person engaged in the
production and distribution of lumber and timber products shall par-
ticpate in any such agreement which has been determined by the
Authority to be in confict with the provisions of this Code.
Ana. XLII. Cancellation or Modification.--(a) The President may
from time to time cancel or modify any order, approval, license, rule,
or regulation issued under Title I of the National Industrial Recovery
Act in respect of this Code.
(b) Any decision, rule, regulation, order, or findinga made or course
of action followed pursuant to the provisions of this Code, may be
cancelled or modified by the Admimetsrator whenever he shall deter-
mine such action necessary to effectuate the provisions of Title I of
the National Industrial Recovery Act.
Ana. XIII. Mlronopoies.--(a) This Code shall not be construed, in-
terpreted, or applied so as to promote or permit monopolies or mo-
nopolistic practices, and shall not be availed of for 'that purpose.
(b) The provisions of this Code shall not be so interpreted or ad-
munistered as to ehimmate or to oppress or to discriminate against
small enterprises.
Ana. XIV. Divn'ison a~nd Subdivision Gode Provisions.--Code pro-
visions affecting or pertaining to Divisions and Subdivisions of the
lumber and timber products industries are contained in Echedule "A"
attached hereto, which is specifically made a part of this Code, in
so far as they relate to description of the respective Divisions and
Subdivisions, identification of persons and products subject to their
jurisdiction, and designation of administrative agencies. Additional
Code provisions affecting or pertaining to Divisions and Subdivisions
may be filed with the Authority and if not inconsistent with the
provisions of this Code may. be recommended by it to the President.
W9hen approved by the President such provisions shall have the same
force and effect as any other provisions of this Code.
Ana. XV. Violations.-Violation by any person of any provision of
this Code or of any rule or regulation issued thereunder and approved
by the President, or of any agreement entered into by him with the
Authority so observe and conform to this Code a.nd said rules and
regulations or by any importer of any agreement entered into by him
with the said Authorityv for the restriction of importation of lumber
and timber products, or any false statement or report made to the
President or to the Authority or to the governing body or agency of






36

any designated Division or Subdivision, after decision by the Adadd-
strator thereon pursiuant to Article XVI[I of this Code or otherwise,
shall constitute an unfair method of competition, and th~e off~ende
shall be subject to the penalties imposed by the National Industrial
Recovery Act.
ART. XVI. Rules of Fair Trade Practice ---(a) The Rules of Fair
Trade Practice for the Lumber and Timber 3Products Industries, as
set forth in Schedule "B" attached hereto, are specifically maede a
part of this Code. The Authority shall make such additions to or
exceptions from said Rules, as the agencies of the respective Divisions
or Subdivisions may request, applicable in the respective Divisions
and Subdivisions, provided the Authority finds said additions and
exceptions are not unfair to persons in other Divisions or Subdivisions
or their employees, or to consumers, and not inconsistent with the
other provisions of this Code, or with the NIational Industrial Recovery
Act. Upon approval of such additions and exceptions by the
Admlinistrator said rules shall take precedence in the respective ]Dii-
sions and Subdivisions in respect of the subject matter of said addi-
tions and exceptions, and shall be effective concurrently with the Rules
so added or exPcepted to.
(b) The applican t industries undertake to adopt, apply,and enforce
branding or marking or marking of lumber and tibrproducts.
Subject to section (c) hereof, all timbers, all seasoned lumber except
factory and shop lumber, all flooring and all shingles and lath shipped
to markets within the United States, not including export shipments,
shall be branded by the manufacturer or producer thereof or by his
agent in such manner as will indicate (1) its species, except as other-
wise. determined by t.he Authority; (2) its grade; (3) whether it is of
standard or substandard dimensions; (4) whether it is seasoned or
unseasoned. All shipments except export shipments, byp rail or
water of timber, hamber, floornpg, shingles, and lath shall be accom-
panied by a, certificate of the oiginat~ing shipper showing the quantity
and grade thereof.
(c) The Authority shall submit to the President, not later than
January 1, 1934, provisions, including proposed rules and regula-
tions, necessary to effectuate the requirements of this Article and to
establish other desirable certification of products, t.o prevent evasion
and to secure equitable application thereof ; and the said provisions
when approved shall be a part of this Code, or of the Rules of Fatir
Trade Practice, and shall be effective not more than thirty (30) days
there after.
ART. XVII. Appeals.--(a) Any interested party shall have the
right of complaint to the designated agency of any Division -or Sub-
division and of prompt hearing and decision thereon in respect of
any decision, rule, regulation, order, or finding made by such agency.
Such complaint must be filed in writing with the said agency watinn
a reasonable period of time after said decision, rule, regulation, order,
or finding is issued. The decision of said agency may be appealed by
any interested partyI to the Authority.
(b) Any interested party shall have! the right of complaint to the
Authority and of prompt hearing and decision thereon, under such
rules and regulations as it shall prescribe, in respect of any decision,
rule, regulation, order, or finding made by the Authority.









(c) Any interested party shall have the right of appeal to the
Administrator of thie National. Industrial~ Recovery Act, under such
rules and regulations as he shall prescribe, in respect of any decision,
rule regulation, order or finding made by the Authority.
.Ana. XVIII. Jurisd~iction.--This Code, when approved by the
3President, shall apply to all persons engaged in the lumber and timber
:products industries aes defined herein.
Ans. XIX. Effective Date and Termination.--(a) The provisions of
th fis Code in respect of maxrimuml hours and minimum wages shall be
; in effect beginning three days after its approval by the President; and
otherr provisions of the Code, unless specifically provided otherwise,
ten days after approval by the President; Schedule B shall be in effect
~at such date as may be specified by the Authority; but not, later than
November 1, 1933.
$)' This Code shall terminatte on June 16, 1935, or on such earlier
dae as the National Industrial Recovery Aqct may ce~a.se to be effective.
'i(e) This Code shall continue in effect for a period of six (6) months
after the date of approval thereof by the President in order t~o afford
to the President an opportunity to determine upon the recommenda-
tions of his representatives on the Authority, which recommendations
shall be made periodically or as often as the said represent tatives deem
necessary or advisable but in any event not later than six months after
thie date of approval of this Code by the President, whether its pro-
visions will effectuate the purposes of Title I of the National Industrial
Recovery Act, subject, however, to amendment at any time, as here-
itibefore provided, and subject also to the reserved powFer of the
President to cancel or mnodifyT his approval thereof. This Code shall
continue in effect after the expiration of said period of six (6) months
in the absence of the exercise of such reserved right on the part of the
President.

SCHEDULE A
DIVISION AND BUBDIVISION--CODE PROVISIONS
(Parenthetical references in these Provisions refler to Articles of the Code)
1.; Cypress Division.
2. H~ardwood Division:
'3.. Appalachian and Southern Hardwood Subdivision.
4. Mahogany Subdivision.
5. Philippine Mahogany Subdivision.
6. Walnut Subdivision.
7.Northern Hardwood Subdivision.
8. North Central Hardwood Subdivision.
9. Northeastern Hardwood Subdivision.
10, Northern Hemlock Division.
1.Northern Pine Division.
1 edwood Division.
18. Northeastern Softwood Division.
14. Southern Pine Division:
15. Southern Rotary Cut Lumber Subdivision.
16. West Coast Logging and Lumber Division:
17. Douglas Fir Plywood Subdivision.
18. Douglas Fir Door Su division.
19. Western Pine Division.
20. Woodwork Division:
21. Stock Manufacturers Subdivision.
22. Wholesale Distributors Subdivision.
23. Special Woodwork Subdivision.







38

24. Wooden Package Division.
25. Sawed Box, Shook, Crate, and Tray Subdivialon.
26. Plywood Package Subdivision.
27. Standard Container Subdivision.
28. Pacific Veneer Package Subdivision.
29. Egg Case Subdivision.
30. Wirebound Box Subdivision.
30s. Veneer Fruit and Vegetable Package Subdivision.
31. Red Cedar Shingle Division:
32. Stained Shingle Subdivision.
33. Oak Flooring Division.
34. Veneer Division.
35. Maple, Beech, and Birch Flooring Division.
36. Hardwood Dimension Division.

1. CTPRBSs DIvasson

Division (Art. II c).-The Cypress Division consists of producers and manu-
facturers of lumber and timber products of Tidewater Red Cypress in the states
of Florida, Georgia, Louisiana, and South Carolina, but does not include-white
and yellow cypress or the small amount of red cypress produced by hardwood
mills.
Products (Art. II a).--Lumber and Timber products under the jurisdiction of
this Division include all Tidewater Red Cypress logs, poles, and piling; eawn
lumber; planing mill products, except those of planing mills operated in con-
junction with retail lumber yards; abingles, flooring, veneers; plywood; lath;
boxes and crates.
Administrative Agency (Art. III).--The Southern Cypress Manufacturers'
Association is designated as the agency of the Authority for the administration
of the Code in this Division. Said Association, through its Board of Directore,
is authorized to make rules and regulations necessary to administer the Code in
this Division, and shall designate and authorize such agencies as may be required
for this purpose.
2. HARDWOOD DIVISION
Division (Art. 11 c).--(a) The Hardwood Division consists of producers, man-
ufacturers, importers, and distributors of hardwood lumber and timber products,
in the following Subdivisions:
Walnut Subdivision.
Southern and Appalachian Hardwood Subdivision.
North Central Hardw~ood Subdivision.
Mahogany Subdivision.
Northeastern Hardwood Subdivision
Northern Hardwood Subdivrision.
Philippine Mahogany Subdivision.
(b) Jurisdiction shall also extend to wholesalers, exporters, and distributors of
such hardwood products to the extent provided for in the Code, in this or any
Subdivision code provisions, and in the rules of fair trade practice appended in
Schedule B.
(c) The territory and person subject to the jurisdiction of the seven Subdivisions
shall be defined by the Hardwood Coordinating Committee hereinafter designated.
Other Subdivisions may be established upon application to the Authority through
the Hardwood Coordinating Committee.
Products (A4rt. TII ).--Hardw~ood logs, sawn ties, timber and lumber, lath,
dimension cut, from t~he log, and products of planing mills operated in conjunction
with sawmills; and in respect of any Subdivision such additional hardwood timber
products as it may enumerate.
Administrative Agencies (Art. Ill).--(a) The Administrative Agencies in the
respectiv-e Subdivisions shall be as follows:
Walnut. Subdivision, American Walnut Manufacturers Association.
Southern and Appalachian .Hardwood Subdivision, Hardwood M~anu-
fact~urers Institute.
North Central Hardwood Subdivision, Indiana Hardwood Lumbermen's
Association.
Mahogany Subdivision, Mathogany Association.
Nort eastern HrooSudvioNortheastern Lumber Manufac-
tuers Assn.







30

Northern Hardwood Subdivision, Northern Hemlock & Hardwood Manu-
facturers Association.
Philippine Mahogany Subdivision, Philippine Mahogany Manufacturers
Import Association.
(b) The Hardwood Coordinating Committee, established by the above admin-
istrative agencies in conjunction with the Natio nal-American Wholesale Lumber
Association, the National Hardwood Lumber Association, and the National
Lumber Exporters Association, is designated as the agency of the Authority for
the administration of the Code in this Division, through and by means of this
administrative agency herein designated for each Subdivision.
(c) Said Committee shall issue and enforce such rules, regulations, and inter-
pretations, including trade practices, impose upon persons subject to the jurisr-
diction of this Division such restrictions and designate such agents and delegate
stich. authority to them as may be deemed necessary; but shall reserve the power
and, duty to enforce the provisions of the Code in this Division. The Committee
may delegate any of its authoirty t~o its representatives, selected from its memnber-
hpor the membership of the Authority, who are hereby empowered to act for
the Division conclusively in respect of all matters coming before the Authority.
Such representatives shall constitute the Hardwood Executive Committee. All
matters of interest .to the Division or any Subdivision requiring action by the
Authority shall first be presented to the Hardwood Executive Committee.
(d) Each Subdivision shall, under authority of the Hardwood Coordinating
Committee, select its own administrative agencies. Each Subdivision shall be
independent and self-govrerning in respect. of all conditions and problems relating
to the said Subdivision exclusively. Proposals in respect of matters affecting
more than one Subdivision may be initiated by any Subdivlision and shall be
submitted to the Hardwood Coordinaiting Committee.
3. APPALACHIAN AND SOUJTHERN HARDWOOD SUBDIVISION

Subdivisionz (Art. Hec): This Subdivision consists of producers and manufac-
turers of hardwood lumber and timber products, but including Appalachian
hemlock, white pine and spruce, also white and yellow cypress and Sout.hern
red cedar, within the following states: Texas, Louisiana, M~ississippi, Alabama,
Arkansas, Missouri, Oklahoma, Florida, Georgia, Tennessee, Kentucky, South
Carolina, North Carolina, Virginia, West Virginia, and Maryland.
The Appalachian Territory is defined as that part of the Appalachian and
Southern Hardwood Subdivision within the lines defined as follows: Starting at
Cincinnati, Ohio, following main line Louisville and Nashville Railroad through
XLouisvile, Kentucky, and Nashville, Tennessee, to Tennessee-Alabama state
-line, making the western boundary of the Appalachian territory; thence east on
Tennessee-Alabama state line to Georgia state line; thence south on Alabama-
Georgia state line to thirty-fourth parallel; thence east on thirty-fourth parallel
Sin Georgia to main line Southern Railway, Atlanta to Washington route; and
thence northeast following Southern Railway from this point through South
Carolina, North Carolina, Virginia, and M'aryland to Pennsylvania state line.
All points on boundary lines are in southern territory.
Products (Art. H~a): All lumber and timber products enumerated except:
poles and piling; products of planing mills not operated in conjunction with
sawmills; hardwodod flooring; veneers; plywood.
Administrative Agency (Art III): The Hardwood Manufacturers Institute is
designated as the agency of the Authority and t~he Hardwood Coordinating
Committee for the administration of the Code in this Subdivision. Said Insti-
tute, through its Board of Directors, is authorized to make rules and regulations
necessary to administer the Code in this Subdivision and to designate and
aruthorize such further agencies as may be required for this purpose.

4. MAHOGANY SUBDIVISION
Subdivision (Art. II c):
The Mahogany Subdivision includes all manufacturers importers, and distrib-
utors, including principals, brokers and agents, of mahogany and foreign woods
as hereinafter defined.
Species and Products (Art. II a): (a) All species of Mahogany (except woods
from the Philippine Islands sold under the trade name "Philippine Mahogany "),
Spanish Cedar, Teak, Ebony, Rosewood, Satinwood, Box Wood, Cocabola,
Lignum, Vitadw, wood from Australia sold under the trade name Oriental Wood ",
European Brown and Pollard Oak, all other tropical hardwoods (except from the







40

Philippine Islands) and all other foreign hardwoods customarily described as
"'fine"', "fancy", or "of value." Ordinarily European and Canadian commeroisl
hardw~oods are excepted.
(b) Jurisdiction over the woods specified and described shall apply to logse,
hewn or sawn timbers, billets, flitches, dimension stock, and lumber. Veneers
(below "ls" thick) are excluded, except cigar box lumber Kg" or thicker of Spanish
Cedar and other tropical woods. Subject to the provisions hereof under "Control
of Production", all logs, including those intended solely for the manufacture of
veneers or ply wood and/or so used, shall be under the jurisdiction of this Sub-
division, in order that due control may be exercised over lumber production in the
event of the diversion of veneer logs to that purpose
Administrative Agency (Art. III): The Mahogany Association, Inc., acting
through the Mahogany Coordinating Committee as its Board of Directore, is
hereby designated as the agency of the Authority and of the Hardwood Coordil
nating Committee for the administration of the Code in this Subdivision.
5. PHILIPPINE MAIIOGANY-SunBIVIstow
Subdivision (Art. II c).-The Philippine Mahogany Subdivision in the United
States consists of manufacturers of lumber and timber products of Philippine
Mahogany and other Philippine hardwoods, persons excluskely representing in
the United States manufacturers of such lumber and timber products in the
Philippine Islands and all importers of such lumber and timber products.
Products (Art. II a).-Logs, lumber, and timber products of all species of hard-
woods produced in the Philippine Islands.
Administrative Agency (Art. III).-The Philippine Mahogany Manufacturers
Import Association is designated as the agency of the Authority and the Hardwood
Coordinating Committee for the administration of the Code in this Subdivision.
Said Association, through its Executivle Committee, is authorized to make rules
and regulations necessary to administer the Code in this Subdivision.
6. WALNUT SUBDIVISION
Subdivision (Art. II c).--The Walnut Subdivision consists of producers, manu-
facturers, and importers of walnut throughout the United States.
Products (Art. II a).--All walnut lumber, logs, burls, crotches, and sawmill
products regardless of the variety of walnut, except walnut veneers.
Administrative Agency (Art. III).--The American Walnut Manufacturers
Association is designated as the agency of the Authority and the Hardwood
Coordinating Committee for the administration of the Code in this Subdivision.
Said Association, through its Executiv~e Committee, is authorized to make rules
and regulations necessary to administer the Code in this Subdivision, and shall
designate and authorize such agencies as may' be required for this purpose.
7. NORTHERN HARDWOOD SUBDIVISION

Subdivision (Art. IIc).-The Northern Hardwood Subdivision consists of pro-
ducers and manufacturers of lumber and timber products of birch, maple, ash,
elm, basswood, oak, beech, and other indigenous and related species in Michigan,
Wisconsin, and Minnesot~a.
Productes (Art. II a).--All lumber and t.imber products enumerated except poles
and piling, woodwork, hardwood flooring, veneers, plywood, and kiln-driqdg hard-
wood dimension.
Administrative Agency (Art. III).--The Northern Hemlock and Hardwood
Manufacturers Association is designated as the agency of the Authority and of
the Hardw~ood Coordinating Commlittee for the administration of the Code in
this Subdivision. Said Association, through its Board of Directors, is authorized
to make rules and regulations necessary to administer the Code in this Sub-
division and shall designate and authorize such agencies as may be required for
this purpose.
8. NORTH CENTRAL HARDWOOD SUBDIVISION

Division (Art. II c).--The North Central Hardwood Subdivision consists of
producers and manufacturers of hardwood lumber and timber products in the
States of Ohio, Indiana, and Illinois.
Products (Art. II a).--All lumber and timber products enumerated except
poles and piling, products of planing mills not. operated in conjunction with eaw-
mills, hlardwood flooring, veneers, and plywood.





''~4 -i



Administrative? Agency (Art.. III).--The North Central Subdivision Association
is designated as the agency of the Authority and of the Hardwood Coordinating
Committ~ee=for the administration of the Code in this Subdivision. Said Associa-
tion, through its Adminialtration Committee, is authorized to make rules and
regulations' necessary to administer the Code in this Subdivision, and shall
designate and authorize such further agencies as may be required for this purpose.
9. NORTHEASTERN HARDWOOD SUBDIVISION
S~ubdivision (Art. II c).-The Northeastern Hardwood Subdivision consists of
-6he producers and manufacturers of hardwood lumber and timber products of
birch, beech, maple, ash, elm, basswood, oak, and related species in the New
England States, New York, Pennsylvania, and New Jersey.
Products (Art. II a).--All lumber and timber products enumerated except:
poles and piling, planing-mill products, woodwork, hardwood flooring, veneers,
.plywood, and kiln-dried hardwood dimension.
Adm~inistrative Agen~cy (Art. III).--The Northeastern Lumber Manufact~urers
IAsi~ociaition is designated as the agency of the Authority and of the Hardwood
Coordinating Committee for the Administration of the Code in this Subdivision.
Sa~id Association, through its Board of Directors, is authorized to make rules and
regulations necessary to administer t~he code in this Subdiivision and shall designate
and authorize such agencies as may be required for this purpose.
10. NORTHERN HEMLOCK DIVlIeoN
Division (Art. II c).-The Northern Hemlock Division consists of the producers
and manufacturers of lumber and timber products of Northern hemlock, tama-
rack, balsam fir, Norway pine, and white pine in the States of Michigan, Wiscon-
sin, dand Minnesota, (excepting the producers and manufacturers of Northern pine
lumber in Minnesota).
Products (Art. II a).--All lumber and timber products enumerated except:
poles and piling, woodwork, hardwood flooring, vreneers, plywood, and kiin-dried
hardwood dimension.
Administrative Agency (Art. III).--The Northern Hemlock and Hardwood
Manufacturers Association is designated as the agency of the Authority for the
administration of the Code in this Division. Said Association, through its
Board of .Directors, is authorized to make rules and regulations necessary to
administer the Code in this Division, and shall designate and authorize such
agencies as may be required for this purpose.
11. NORTHERN PINE Drvrstow
Division (Art. II c).-The Northern Pine Division consist of the producers and
manufacturers of lumber and timber products of white pine, Norway pine, and
miscellaneous softwood and hardwood lumber in the State of Minnesota.
Products (Art. II a).-All lumber and timber products enumerated except:
millwork, hardwood flooring, veneers, plywood, and kiin-dried hardwood dimen-
sion.
Administrative Agency (Art. IT).--The Northern Pine Manufacturers' Asso-
ciation is designated as the agency of the Authority for the administration of the
Code in this Division. Said Association, through its Board of Directors, is
authorized to make rules and regulations necessary to administer the Code this in
*Division, and shall appoint such agencies as may be necessary for this purpose.
12. REDWOOD DIVISION
Division (Art. II c).-The Redwood Division consists of producers and manu-
tacturers of lumber and timber products of redwood and interminged species in
the counties of Del Norte, Humboldt, Mlendlocino, Sonoma, Marin, San Mlat~eo,
Santa Cruz, and Monterey, in the State of California.
Products (Art. II a).--All lumber and timber products, split, sawn, or refined by
manufacture, except hardwood flooring, veneers, plywood, and kiln-dried hard-
wood dimension.
Administrative agency (Art. III).--The California Redwood Association is des-
ignated as the agency of the Authority for the administration of the Code in this
Division. Said Association, through its Board of Directors, is authorized to
make rules and regulations necessary to administer the Code in this Division
and shall designate such agencies as may be required for this purpose.







42

13. NORTHEASTERN SOFTWOOD DIVISION
Divi'sion (Art. II c).--The Northeastern Softwood Division consists of producers
and manufacturers of lumber and timber products of hemlock, _spruce, white
pine, aind other softwoods in the New England States, New York, Pennsylvania,
New Jersey, and West Virginia.
Products (A4rt. II a).--All lumber and timber products enumerated except
poles and piling, planing-mill products, woodwork, hardwood flooring, veneers,
plywood, and kiln-dried hardwood dimension.
Administrative Agency (Art. III).--The Northeastern Lumber Manufactutrer
Association is designated as the agency of the Authority for the administration
of the Code in this Division. Said Association, through; its Board of Directore,
is authorized to make rules and regulations necessary to administer the Code in
this Division and .shall designate and authorize sulch agencies as may be required
for this purpose.
14. SOUTHERN PINE DIVISION
Division (Art. II c).-The Southern Pine Division consists of producers and
manufacturers of lumber and timber products of t.he various species of Southern
Pine, in the States of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky,
Louisiana, Maryllanld, Mississippi, Missouri, North Carolina, Oklahoma, South
Carolina, Tennessee, Texas, Virginia, and West Virginia.
Productes (Art. 11 a).--Sout~hern Pine logs, poles and piling, sawn lumber, and
products of planing mnills operated in conjunction with sawmills, shingles, lath,
boxes, and crates.
Administrative Agency (Art.. Ill).--The Southern Pine Association is designated
as t.he age~ncy of the A4uthority for the administration of the Code in this Division.
Said Association, through it's Board of Directors, is authorized to make rules
and regulations necessary to adminlister the Code in this Division and Ishall
designate and authorize such agencies as may be required for this purpose.
15. SOUTHERN ROTARY CUT LUMBER SUBDIVISION
Subdivision (Art.. II c).--The Southern Rotary Cut Lumber Subdivision con-
sists of manufacturers of package and boxu grades of rotary-cut lumber in the
States of North Carolina, South Carolina, Georgia, F~lorida, Allabama, Mississippi,
Louisiana, Tennessee, Arkansas, and Texas.
Produ(cts (Art. II a).-All1 lumber manufactured on rotary lathes for cases,
crates, and fruit and vegetable packages, whether for sale to the manufacturers
of these products, or for use by the rotar~y-cut lumber producer himself in the
manufacture of such products, or for sale in the open market or to package manu-
facturers in competition with those wrho produce solely~ package grades of rotary-
cut lu~mber.
Aldministrative Agencey (Art. Ill).-The Southern Rotary Cut Lumber Assboia-
tion is designated as the agency of the Au~thority for the administration of the
Code in this Subdivision. Said Association, through its Executive Committee, is
authorized to manke rules and regulations necessary to administer the Code in this
Subdivision, and shall designate and authorize such agencies as meay be required
for this purpose.
16. WEsT COAST LOGOING AND LUMBER DvIVsIon
Division (Art. II e).-The West Coast Logginlg and Lumber Division consists
of producers and manufacturers of lumber and timber products of Douglas Fir,
West Coast Hemlock, Sitka Spruce, Western Red Cedar, and related species in
Western Oregon, Western Wa~shington, and Alaska.
Products (.Art. II a).--All lumberl and timber products enumerated except:
shingles, woodwork, veneers, plywood, hardwood flooring, and kiln-dried hardwood
dimension.
A~dmini'strative Agencies (Art.. III).-The W'est Coast Lumbermen's Association
and the Pacific Northwest Loggers Association are designated as the agencies of
the Authorit.v for the administration of the Code in this Divlision. 8sid Associa-
tions, through their respective Doards of Trustees, are authorized to make rules
and regulations necessary to administer the Code in this Division and shall
designate aind authorize sulch agencies as mayv be required for this purpose.







43


17. DoucLas FIR PLY WOOD SUBDIVISION
Subdivision (Art. II c).-The Douglas Fir Ply wood Subdivision consists of
manufactures of Douglas Fir Veneers and plywood in the States of Oregon and
Washington .
r Products (Art. IT a).--The following products only shall be under the juris-
i; diction of this Subdivision, viz: veneers; plywood.
Admsinistrative agencies (Art. III).--The Douglas Fir Plywood Manufacturers
Association, a Branch of the West Consit Lumbermen's Association, is designated
ats-.the agency of the Authority for the administration of the Code in this Sub-
division, under the supervision of the West Coast Lumbermen's Association as
to-inazimum hours of larbor, minimum rates of pay, the payment of Code fees
and submission of Code reports, and any questions of correlation and adjustment
with other industries included in the West Coast Logging and Lumber Division.
Subject to such supervision, the said Association, through its Executive Com-
mittee, is authorized to make rules and regulations necessary to administer the
Code in this Subdivision and shall designate and authorize such agencies as may
be required for this purpose.
18. DOUGLAB FIR DOOR SU7BDIVISION
Subdivision (Art. II c).-The Douglas Fir Door Subdivision consists of manu-
factures of Douglas Fir stock doors in the States of Oregon and Washington.
SProducts (Art. II a).-The following products only shall be under the juris-
diction of this Subdivision, viz: Douglas Fir stock doors.
Administrative Agencies (Art. III).--The Douglas Fir Door Mianufacturers
Association, a branch of the West Coast Lumbermen's Association, is designated
as the agency of the Authority for the administration of the Code in this Sub-
division, under the supervision of the West Coast Lumbermen's Association as
to maximum hours of labor, minimum rates of pay, the payment. of Code fees
and submission of Code Reports, and any questions of correlation and adjust-
ment with other industries included in the West Coast Logging and Lumber
Industry Division. Subject to such supervision, the said Association, through
its Executivre Committee, is authorized to make rules and regulations necessary
to administer the Code in this Subdivision and shall designate and authorize
such agencies as may be required for this purpose.
19. WESTERN PINE DavreINo
Division (Art. II e).-The Western Pine Division consists of producers and
manufacturers of lumber and timber products of western pines and intermingled
species in the States of Arizona, California (excepting certain counties which are
included in the Redwood Division), Colorado, Idaho, Montana, Oregon (except-
ing certain counties which are included in the West Coast Logging and Lumber
Division), New Mexico, South Dakota, Ut~ah, Washington (excepting certain
counties which are included in t~he West Coast Logging and Lumber Division),
and Wyoming.
Products (Art. II a).--All lumber and timber products enumerated except
poles and piling, products of planing mills not operated in conjunction with
sawmills, shingles, woodwork (millwork), hardwood flooring, veneers, plywood,
and kiin-dried hardwood dimension.
Administrative Agency (Art. III).--The Western Pine Association is designated
as the agency of the Authority for the administration of the Code in this Division.
Said Association, through its Board of Directors, is authorized to make rules
and regulations necessary to administer the Code in this Division, and shall
designate and authorize such agencies as may be required for this purpose.
20. WOODWORK DIvision
Divisionr (Art. II e).-(a) The Woodwork Division consists of manufacturers
whose predominant products are doors, windows, screens, frames, and interior
trim, which products are similar to and in competition with the products of
planing mills and sash and door and millwork factories operated in conjunction
with sawmills; manufacturers whose predominant products are furniture, fixtures,
refrigerators, automobile bodies, or ecclesiastical furniture or whose predominant
business is the manufacturing, finishing, and installing in the building of cabinet-
work are not included.






44

(b) The Woodwork Division is divided for jurisdictional and administrative
purposes into Subdivisions as follows:
Stock Manufacturere Subdivision.
Wholesaler Distributors Subdivision.
Special Woodwork Subdivision.
(c) The territory and persons subject to the jurisdiction of the several Bab.
divisions shall be de~ned by the agency of the Division hereinafter designated.
Other Subdivisions may be established by the Agency of the Division with the
approval of the Authority.
(d) Each of the Subdivisions hereinabove named and any Subdivision here.
after established under authority of the designated agency of the Division may,
subject to the approval of said agency, designate an agency for the administra.p
tion of the Code in such Subdivision. Each Subdivision shlall be independent
and self-governing in respect of all conditions and problems relating to the said
Subdivision exclusively. Proposals in respect of matters affecting more than
one Subdivision may be initiated by any Subdivision and shall be submitted to
and decided by the designated agency of the Division. The designated agency
of the Division shall reserve the power and duty to enforce the provisions of the
Code and the rules and regulations of the Authority and of this Division, includ-
ing rules of fair trade practice.
(e) Each Subdivision hereinabove named and each Subdivision hereafter estab-
lished as hereinabove provided shall have the power and authority to establink
within the Subdivision groups of manufacturers or distributors whose conditions
and problems are similar, and may authorize each of said groups so established
to designate with the approval of the designated agency of the Subdivision its
own administrative agency and may confer upon the administrative agency of
any such group such powers and authorities as it may deem necessary in order
to administer this Code within said group.
Produlcts (Art. II a).-W~oodworki (millwrorkr) including products of planing
mills operated in conjunction with retail lumberyards, and excepting Douglas fir
stock doors.
Admlinistrative Agency (Art. III).--The Emergency National Committee of the
WToodwforki Division, consisting of the Board of Directors of the National Wood-
wor Asocitio, i dsigate astheagncy of the Authority for the admin-
istration of the Code in this Division. Si omte satoie omk
rules and regulations necessary to administer the Code in this Division and shall
designate and authorize such agencies as may be required for this purpose.
21. STOCK MANUFACTUR.ERS SUJBDIVISIO'N
Sulbdiv~ision ('Art. II e).--The Stock Mlanufacturers Subdivision consists of
manufacturers of products listed below:
Products (Art. II a).--Stock or standard doors, windows, screens, frames, trim,
and miscellaneous millw~ork.
Administrative Agency (Art. III).--The Stock Manufacturers Coordinating
Committee, to be composed of five persons selected jointly by National Door
Manufacturers Association and National Screen Association, is designated as
the agency of the Authority and of the Emergencyr National Committee of the
Woodwork Division for the administration of the Code in this Subdivision.
Said committee is authorized to make rules and regulations necessary to admin-
ister the Code in this Subdivision and shall designate and authorize such agencies
asrmay be required for this purpose.
22. WHOLESALE DISTRIBUTORS SUBDIVISION
Surbdivision (Art. II c).-The Wh~olesale Distributors Subdivision consists of
wholesale distributors of products listed below:
Products (Art. II a).-Doors, windows, screens, frames, trim, and miscellaneous
woodwork.
Administrative A-gency (Ar-t. III).--The Wholesale Sash and Door ~Adsciation,
Chicago, Illinois, is designated as the agent of the Authorit~y and of the Emergency
National Commit.tee of the Woodwlork Division for the administration of the
Code in this Sulbdivision. Said Associ~t~ion is authorized to make rules and regu-
latioins necessary to administer the Code in this Subdivrision and shall designate
anid authorize such agencies as may be required for this purpose.







45

23. SPEcIAL WOODWORK SUBDIVISION
' Bui~cbdivision (Art. II c).-T~he Special Woodwork Subdivision consists of manu-
AnOtarers of products listed below:
Products (Art. II a).--Made-to-order or special woodwork.
Admvinistrative Agency (Art. III).--A committee to be selected jointly by Mill-
orbk Cost Bureau of Chicago, Illinois; Eastern Millwork Bureau of New York
ity,.~;New York; and Southern Woodwork Association of Knoxville, Tennessee,
tbeknown as the Coordinating Committee of the Special Woodwork Sub-
'division, is designated as the agent of the Authority and of the Emergency
iNietionall Committee of the Woodwork Division for the administration of the
iCode in this Subdivision. The said Committee is authorized to make rules and
ingu, nations necessary to administer the Code in this Subdivision and shall desig-
iMste rand authorize such agencies as may' be required for this purpose.
24. WOODEN PACK AGE DIVIsION
Division (Art. II (c)) and Product~s (Art. II (a)).-The Wooden Package Divi-
sion consists of manufacturers of wooden shooks, boxes, crates, baskets, hampers,
and other packages or parts thereof, whether made of sawed lumber, veneer, or
plywiood, either knocked down or put together with nails, wire, or glue, with or
without iron or wire reinforcement, together with trays and other products
-dommonly made in box factories.
''' 'Admainistrative Agency (Art. III).--The National Federation of Wooden Pack-
age Associations, a coordinating agency of the Wooden Package Industry Asso-
eiations, is designated as the agency of the Authority for the administration of
the Code in this Division. Said National Federation, through its Board of
Directors (being the Coordinating Committee of the Wooden Package Industry),
is authorized to make rules and regulations necessary to administer the Code in
this Division, and shall designate and authorize such agencies as may be required
for this purpose.
(a) For the more effective administration and enforcement of the Code in this
~Division, Subdivisions shall be established as may be necessary to meet the
requirements of the various groups and classifications of manufacturers included
therein .
(b) The following Bubdivisions are hereby established:
SA. Sawed Box, Shook, Crate, and Tray Subdivrision.
B. Plywood Package Subdivision.
C. Standard Container Subdivision.
D. Pacibe Veneer Packages Subdivision.
E. Egg Case Subdivision.
F. Wirebound Box Bubdivision.
G. Veneer Fruit and Vegetable Package Subdivision.
(c) Additional Subdivisions of this Division may be -established by said
~Coordinating Committee with the approval of the Authorit~y.
(d) '1he said Coordinating Committee shall, with the approval of the Authority,
d~isignate the administrative agency under the Code in each of the foregoing
Subdivisions and in such additional Subdivisions as may hereaft.er be established;
and shall authorize the designated agency in each Subdivrision to make such rules
and. regulations and to designate such further agencies as may be required for
the administration of the Code therein. Each Subdivision shall be independent
and self-governing in respect of all matters and problems relating to the said
BSuBdivision exclusively, under the general direction of the said Coordinating
'Committee. Proposals in respect of matters affecting more than one Subdivision
may be initiated by any such Subdivision and shall be submitted for consideration
to the said Coordinating Committee. The designated agency of the Division
shall reserve the power and duty to enforce the provisions of the Code and t~he
.rules and regulations of the Authority and of this Division, including rules of
fair trade practice.
(e) Subdivision hereinabove named, and each Subdivision hereafter established
as hereinabove provided, shall have power and authority to establish within the
Subdivision groups of manufacturers whose conditions and problems are similar,
and may authorize each of said groups so established to designate with the approval
of the designated agency of the Subdivision its own administrative agency and
may confer upon the administrative agency of any such group such powers and
authorities as it may deem necessary in order to administer this Code within
said group.







46

25. SAWED-BOx, SHOOK, CRATE AND TRAY SUBDIVISION

Subdivision (Art. II c) and Products (Art. II a).-The Sawed-Box, Shook, Crate
and Tray Subdivision of the Wooden Package Division consists of manufacturers,
sales agencies, distributors, and the agents or representatives thereof, of sawed
wooden boxes, shooks, crates and trays, whether such containers be in shook or
in made-up form, including complete boxes, crates and trays, as well as any por-
tion thereof.
Administrative Agency (Art. Ill).--The National Wooden Box Association,
through its Board of Governors as its Coordinating Committee, is designated as
the agency of the Authorityr and of the Coordinating Committee of the Wooden
Package Division for the administration of the Code in this Subdivision. Said
Association, through its Coordinating Committee, is authorized to make rules
and regulations necessary to administer the Code in this Subdivision, and shall
designate and authorize such agencies as may be required for this purpose.
26. PLYw~oon PACKAGE SUBDIVISION
Subdivision (Art. II c) and Products (Art. II a).-The Plywood Package
Subdivision consists of manufacturers of plywood packages or containers and of
flat plywood for package or container purposes located in anyr part of the United
States.
Aldministraltive Agency (Art. III).--The Plywood Package Institute is desig-
nated as the agency~ of the Au~thority and of the Coordinating Committee of the
Wooden Package Division for the administration of the Code in this Subdivision.
Said Institute, through its Executive Committee, is authorized to make rules
and regulations necessary to administer the Code in this Subdivision, and shall
designate and authorize such agencies as may be required for this purpose.
27. STANDARD CONTAINER SUBDIVIsION
Subdivision. (Art. II c) and Products (Art. II a).-The Southeastern Veneer
Container Subdivision of the Wooden Package Division consisted of manufao-
turers of veneer fruit and vegetable containers and/or container material in the
States of Florida, Georgia, and Alabama.
Administrative Agency (Art. III).--The Standard Container Manufacturere
Association is designated as the agency of the Authority and of the Coordinating
Committee of the Wooden Package Division for the administration of the Code
in this Subdivision. Such Association, through its Board of Directors, is au-
thorized to make rules and regulations necessary to administer the Code in this
Subdivrision, and shall designate and authorize such agencies as may be required
for this purpose.
28. PACIFIC VENEER PACKAGE SUBDIVISION
Subdivision (Art. II c) and Products (Art. II a).--The Pacific Veneer Package
Subdivision of the Wooden Package Division consists of manufacturers of veneer
fruit and vegetable containers and package, and parts thereof, in the states of the
Pacific Slope.
Administrative Agency (Art. III).--The Pacific Veneer Package Association is
designated as the agency of the Authority and of the Coordinating Committee
of the Wooden Package Division for the administration of the Code in this Sub-
division. Such Association, through its Board of Directors, is authorized to
make rules and regulations necessary to administer the Code in this Subdivision
and shall designate and authorize such agencies as may be required for this pur-
pose.
29. EGG CASE SUBDIVISION
Subdivision (Art. II c) and Products (Art. II a).-The Egg Case Subdivision
consists of manufacturers of egg cases or parts thereof of cottonwood, tupelo,
gum, and other hardwoods.
Administrative agency (Art. III).--The Egg Case Manufacturers Exchange is
designated as the agency of the Authority and of the Coordinating Committee
of the Wooden Package Division for the administration of the Code in this S~ub-
division. Said Exchange, through its Executive Committee, is authorized to
make rules and regulations necessary to administer the Code in this Subdivision,
and shall designate and authorize such agencies as may be required for this
purpose .







i 47

30. WIREBOU~ND BOx SUBDIVI~BION
Susbdivision (Art. II c) and Products (Art. TI a).-The Wirebound Box Sub-
division of the Wooden Package Division consists of manufacturers of wirebound
boxes and crates in the United States.
.Adminaistrativre Agency (Art. III).--The Wirebound Box Manufacturers Asso-
elation is designated as the agency of the Authority and of the Coordinating
. Committee of the Wooden Package Division for the administration of the Code
in this Subdivision. Said Association, through its Board of Governors, is author-
izred to make rules and regulations necessary to administer the Code in this Sub-
division and shall designate and authorize such agencies as may be required for
this purpose.
30s1. VENEER, FRUIT AND VEGETABLE PACKgAGE DIVISION
Division (Art. II c) and Products (Art. II a).--The Veneer Fruit and Vegetable
Package Subdivision consists of manufacturers of wooden boxes, crates, shooks,
baskets, hampers, trays, and all kinds of wooden veneer packages used in the
marketing of fresh and perishable fruits and vegetables not included in other
subdivisions of the Wooden Package Division of this Code.
Administrative Agency (Art. III).--The American Veneer Package Association
is designated as the agency of the Authority and of the Coordinating Committee
of the Wooden Package Division for the administration of the Code in this Sub-
division. Said Association, through its Board of Directors, is authorized to make
rules and regulations necessary to administer the Code in this Subdivlision, and
shall designate and authorize such agencies as may be required for this purpose.
31. RED CEDAR SHINGLE DIVision
Division (Art. II e).--The Red Cedar Shingle Division consists of producers
and manufacturers of Western Red Cedar shingles in Washington and Oregon.
Products (Art. II a).-The following products only shall be under the jurisdie-
tion of this Division, viz: Shingles.
Administrative Agency (Art. III).--The Washington and Oregon Shingle
Association is designated as the agency of the Authority for the administration
of the Code in this Division. Said Association, through its Board of Trustees, is
authorized to make rules and regulations necessary to administer the Code in
this Division and shall designate and authorize such agencies as may be required
for this purpose.
32. STAINED SHINGLE SUBDIVIsION
Surbdivision (Art. II c).-The Stained Shingle Subdivision consists of persons
processing, staining, and treating wood shingles in the United States.
Products (Art. II a).--The following products only shall be under the jurisdic-
tion of this Subdivision, vis: Shingles (Stained, processed, or treated).
Administrative Agency (Art. III).--The National Stained Shingle Associattion
is designated as the agency of the Authority for the administration of the Code in
this Subdivision. The said Association, through its Board of Directors, is author-
ined to make rules and regulations necessary to administer the Code in this Sub-
division and shall designate and authorize such agencies as may be required for
this purpose.
33. OAK FLOORING DIVISION
Division (Art. II c).-The Oak Flooring Division consists of producers, manu-
foo~turers, and distributors of oak flooring throughout the United States.
. Products (Art. II a).--All standard items of oak flooring as set forth in the
Grading Rules and Specifications of the National Oak Flooring Manufacturers
Association.
Admzinistrartive Agency (Art. III).--The National Oak Flooring Manufacturers
Association is designated as the agency of the Authority for the administration of
the Code in this Division. Said Association, through its Board of Directors, is
authorized to make rules and regulations necessary to administer the Code of this
Division and shall designate and authorize such agencies as may be required for
this purpose.
34. THE VENEER DZvieroN
Division (Art. II c).--The Veneer Division consists of producers, manufactur-
era, importers, and distributors of veneers throughout the United States.







48

Products (Art. TI a).--All veneers regardless of species and origin except:
Douglae Fir, Western Cedars, Spruce, Western and Southern Pines, Hemlock, and
such hardwood veneers as are manufactured exclusively for crates and other
containers.
Administrative Agency (Art. III).--The Veneer Association is designated as the
aecy of the Authority for the administration of the Code in this Division.
SadAssociation, through its Board of Directors, is authorized to make rules and
regulations necessary to administer the Code in this Division and shall dealgnate
and authorize such agencies as may be required for this purpose.

35. MAPLE, BEECH, AND BIRCH FLOORING DIVISION
Division (Art. II c).--This Division consists of manufacturers of maple, beech,
and birch flooring throughout the United States.
Products (Art. II a).-Hard maple, beech, and birch flooring.
Administrative Agency (Art. III).--The Maple Flooring Manufacturers Aeso-
ciation is designated as the agency of the Authority for the administration of
the Code in this Divrision, Said Association, through an Executive Committee
consisting of its President, Vice President, two members appointed by the manu-
facturers in the northern states and one member appointed by the manufae-
turers in the Southern States, is authorized to make sales and regulations necessary
to administer the Code in this Division, and shall designate and authorize such
agencies as may be required for this purpose.
36. HARDWOOD DTMENsION DIVrsION
Division (Art. II c).-The Hardw~ood Dimension Division consists of manu-
facturers of kiln-dried hardwood dimension stock in three distinct sections as
follows: Southeastern--North Carolina, South Carolina, Florida, Georgia, and
eastern Tennessee; Central-Khentucky and Western Tennessee; Soauhreesten--
Missouri, Arkansas, Louisiana, Mississippi, and Texas.
Productls (Art. 11 at).--Kiln-dried hardwood dimension only.
Admninistrative Agenlcy (Art. III).--The Hardwood Dimension Manufacturers
Association is designated as the agency of the Authority for the administration
of the Code in this division. This association authorized its Executive Corn-
mittee to make rules and regulations necessary to administer the Code in this
division.

SCHEDULE B

RULES OF FAIR TRADE PRACTICE FOR THE LUMBER AND TIneanR PRODUCTSB
INDUBTRIES
SECTIION i. DB/Wnitjion.--(a) A manufacturer is a person who operates a mill
converting logs or lumber into lumber anid/or timber products.
(b) The term saless company used in this Code is a company organized or
owned by manufacturers to acil their own or other manufacturers' lumber through
salaried salesmen, wholesalers, or commission men.
!c.) A w~holesaler is a person actively and continuously engaged in buying, as-
semb~ling, or rehandling lumber and timber products fr~or n anufactu~rrer or other
wholesalers in quantity lots and selling it principally to wholesalers, retailers,
and recognized w~holeaale trade, wh~o maintains a sales organization for this pur-
pose, assumes credit riskF and such other obligations as are incident to the
transportation and distribution of lumber and timber products. Whbole~sale
Assembling and Distributing Yards as defined in Divisional Rules and Regula-
tions shall also be classed as wholesalers.
(~d) A comlmissionr man is a person located in the territory which he serves,
who regulatrly bells in wholesale quantities for manufacturers or wholesalers to
recognized wholesale trade and who is paid a stipulated amount (known as a
commission on each individual sale and holds a relation to the seller similar to
that of a salaried saleanmnn.
(e) A rptailer is one who maintains adequate and p~ermanent storage and
hiandlinig facilities, a sales organization for t~he consumer trade and carries a well
assortedl stock adapted to t~he normal needs of the consumers in his sales territory.
rf, Inrdustrial.--The term "industrial" as used in these Rules include wood
fabricators, box and cr.lting manufacturers and users, and u~sers of lumber and
timber products in part or all of their malnufacturing: and shipping processes.
rg) An exzporter is a mlanulfacturer or sales company? or wholesaler with definite
foreign connections or established agenicies, maintaining a permanent office in







40.

the U.S.A., continuously selling and shipping lumber and timber products to
'fir.eigpn countries (C~anada and Mexico excepted) in substantial quantities.
c(h)` An importer is a person of any nationality who brings goods, or causes
them to be brought, into the United States from any foreign country, whether
ill bond or not, and whether he is already the owner of the goods before they
arrive or purchases them on delivered terms.
:. 8c, 2. Wholesalers.--The lumber wholesaler is an economic factor in the
st~ribltion. of lumber and it is recognized that he is entitled to compensation
for, his distribution services.
,.() ~Each Division, and each Subdivision, through its designated agency, shall
eagablish for its members and file with the Authority a schedule of maximum
discounts to be allowed to wholesalers for distribution services. Said discounts
when approved by the Authority shall remain in effect until changes are aLpproved
by it.
(b) As a condition of the grant of wholesale discounts, the wholesaler shall not
rebate or allow any part of said discount to any customer, or sell or offer to sell
any item of lumber or timber products under the minimum prices established as
provided in this Code, except'to another wholesaler or manufacturer; and he shall
conform to all provisions of this Code, as they apply to him in the sale and
distribution of each species.
850. 3. Comamission men.-The lumber commission man, as an agent. of the
seller, is entitled to compensation (commission) for his distribution services.
(a) Each Division, and each Subdivision, through its designated agency, shall
establish for its members and file with the Authority a schedule of maximum
commissions to be paid to commission men for distribution services. Said com-
missions when approved by the Authority shall remain in effect until changes
are approved by it.
(b) As a condition of the payment to him of commissions, the commission man
shall not split commissions with any customer nor shaUl he sell or offer to sell any
item of lumber and timber products under the minimum prices established as
provided in this Code, and he shall conform to all provisions of this Code as they
apply to him in the sale and distribution of each species.
(c) No manufacturer or wholesaler shall be permitted to have more than one
commission representative for each species calling on the same trade in the same
territory.
SEC. 4. (a) Buyers' agents who act for the purchaser shall not be entitled to
any discounts or allowances on any lumber or timber products sold to their
customer stockholders, owners, partners, or parties otherwise interested.
(b) No manufacturer shall give discounts to others than wholesalers or greater
in amount than those established and filed in accordance with Section 3 (b) of
these Rules, or commissions to others than commission men or greater than
those established or fied in accordance with Section 4 (b) of these Rules, and no
manufacturer shall give allowances of any character otherwise than in accord-
ance with standard terms of sale as set forth in Section 5 of these Rules.
(c) Direct intermanufacturer purchases or exchanges of atock, between mills
of the same Division, for the fUilig of orders sold on a wholesale basis, shall not
be considered as coming under the provisions of this Code as regards minimum
prices.
(d). Contractual relations between a manufacturer and his sales company,
acting as sales agent or outlet at cost, shall not come under the provisions of
this Code as to wholesale allowances or commissions, but the sales of any such
sales company however made shall be in accordance with all provisions of this
Code.
ISm. 5. Sales, Orders, and Invoices.--(a) Except for water shipment, where
the credit risk is satisfactory to the seller, lumber, and timber products sold by
anfacturers and wholesalers shall not be more liberal to the buyer than as

'(1) To retailers8-60 days net from date of invoice, or a cash discount of 2%'
of the net amount after deducting actual freight if paid within 5 days after
arrival of car.
(2) To wholesalers--80% of' the net amount after deducting estimated freight
within 15 days from date of invoice, balance less 2% of total net after deducting
actual freight within 60 days from date of invoice.
(3) To industrials and buyers not otherwise classified--60 days net from date
of invoice or a cash disedimnt of 2%0 of the net amount after deducting freight if
paid within 10 days after arrival of car.
( 4) Prepaid freight shall be net and subject to sight draft, or to payment upon
receipt of mnvoice.







50

(b) No lumber and timber products on which minimum prices have been
established under this Code shall be sold for less than the said established prices,
except when sold to wholesalers under provisions of Section 2.
(c) No lumber or timber products shall be sold with any guarantee against
decline in price before or after delivery.
(d) Except for water shipment, manufacturers and wholesalers shall not make
contracts with retailers and/or wholesalers for future shipment to retailers at our-
rent prices for shipment over a longer period than 30 days from date of order.
Except as specifically authorized by the Division or Sub-Division Authority,
manufsetulrers and wholesalers shall not make contracts with industrials and/or
wholesalers for shipments to industrials at current prices for a longer period than
three months from date of order, except when said contracts contain a provision
for a price adjustment to bec effective for each succeeding ninety-day period,
which revised prices shall be not less than the established minimum prices at the
time of each adjustment. 'The foregoing restrictions shall not apply to lumber or
timber products sold for a speccific construction job on a contract not subject to
cancellation. Complete specifications covering all orders for rail or water ship-
menits shall be furnished to the seller within ten days from date of order.
(e) In figuring delivered prices for rail shipment, by adding freight charges to
mill prices, the seller shall use the established schedule of weights for the species
sold.
(f) Prices shown on order and invoice shall not include any manufacturer's
sales, excise, privilege, or other tax, freight surcharge or charge imposed upon or
incident to said transaction, or by reason thereof, by any governmental authority
either b~y present or future enactment, and no sulch tax, surcharge or charge shall
be deductible from invoice by buyer in making remittance to either manufae-
turer or wholesaler.
(g) All quotations shall include a definite limit of time for acceptance, but in
no ease shall quotations be for a period longer than 15 days from date of quotation,
except on special construction projects, not to exceed 60 days.
(h) No manufacturer or wholesaler shall make a carload sale that requires
invoicing and delivery to more than three retailers or more than one stop-over at
origin and one! stop-over at destination. Pool car sales of less than 10,000 feet
to any one constomer shall be subject to such service charge as may be established
by each of the several Divisions. Stop-ovrer charges, if any, shall be paid by the
buyer or buyers in addition to the invoice price.
(i) Orders and invoices shall show terms of sales, association grade, species,
quantities, sizes, and price of each item for agreed delivery. In respect to lumber
and timber products not of American Lumber Standard size and/or association
grade b~oth order and invoice shall show the nominal and finished sizes and the
grade sold by reference to some -non-association specification on file with the
Division, or completely stating the specifications. Orders and invoices shall state
whether the stock is green, air dried, or k~iln dried.
(j) Neither manufacturers nor wholesalers shall place stock in transit via rail.
Neither manufacturers nor wholesalers (except such wholesalers as have acquired
full and unconditional title to the stock prior to shipment) shall place unfold stock
in transit via water. Neither manufacturers nor wholesalers shall place stock on
consignment.
(k) In respect of lumber special nonstandard sizes and grades may be manu-
factured and sold under special contract, but grade, size, both rough and dressed,
and price must be detailed in both order and invoice. The manufacture, pur-
chase and/or sale of nonstandard sizes, grades, and classifications of lumber and
timber products for the purposes of evading any of the provisions of this Code is
hereby prohibited.
8EC. 6. Grading and Inspection.--(a) In the absence of an express sales agree-
ment all lumber and timber products shall be manufactured and graded in accoard-
ance with official published manufacturers association grading and inspection
rules applicable thereto. In the absence of an express sales agreement, trade
terms, definitions, and all other terms, words or phrases, and regulations relating
to the manufacture, sale, invoicing, and shipment of lumber are understood to be
interpreted and applied in accordance with the applicable provisions of the offcial
manufacturers association grading rules in ellect at the time of sale.
(b) Manufacturers and wholesalers shall not alter grades by taking out either
the poorest or the best material or by adding lower or higher grade material for the
purpose of evading the provisions of the Code.
(c) If lumber is grade marked or species marked only the standard manufao-
turers association grade marks and species marks wherever established shall be
used.







.. .51

r:(d) Manufacturers and wholesalers shall not misbratnd or invoice falsely any
I:;?lumber as to quantity, size, grade, origin, species, or condition of dryness.
(e) Ofieial inspection, when required by either buyer or seller, shall be made
only by an official inspector of the manufacturers association issuing the oficial
grading rules for the species to be inspected, applying the rules agreed to at the
time of sale, or, in the event of no such agreement, the of~eial manufacturers
association grading rules and regulations under which the lumber or timber
products are commonly bought and sold.
{f) Except for water shipment, as certification of quantity and grade of lumber
adtimber products shipped, an ofieial manufacturers association car card
shipperss certificate) shall be placed in each car shipped; such certificate shall not
disclose the name of the originating manufacturer but shall carry such marks or
number as will enable the Division or Subdivision to trace the shipment. For
shipments requiring official inspection at point of origin the offcial certification
of the manufacturers association inspection agencies shall be furnished.
S(g) All lumber and timber products either rough or dressed manufactured to
sizee below American Lumber Standards and/or manufacturers association stand-
ards sold on standard nominal size shall be branded "sub-standard" and sueb
brand shall not be obliterated or removed.
Bac. 7. Arbitration.--Any dispute between parties coming within the provisions
of this Code involving $50.00 or more and arising out of transactions in respect to
the sale of lumber and timber products, except as to grade or tally, may be
referred to ain arbitration committee. For this purpose the disputants agreeing
to arbitration shall sign an arbitration agreement approved by the Authority for
which application may be made to any Division. In the event of the failure of
the disputants to agree as to the arbitration agency the Authority may designate
an agency to conduct the arbitration. The findings and award of said arbitration
'through said agency shall be final and binding upon both parties.
S~c. 8. Policing.--The authority shall establish such agencies generally dis-
tributed through the United States as it may deem necessary to provide for such
prompt relaxation of these rules and/or interpretation thereof as may be necessary
to prevent these rules from promoting monopolies or eliminating or oppressing
small enterprises or operating to discriminate against them, and shall invest
such agencies with aUl power and authority necessary or appropriate to secure
prompt decision of such questions.
SEc. 9. Export Business.---These rules shall not apply to export business which
shall be subject to the supplemental Rules of Fair Trade Practice of each
Division or Subdivision.




UNIVERSITY OF FLORIDA
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3 1262 08582 9827

























;i




Full Text

PAGE 1

389-A , Registry No. 313-1-06 NATIONAL RECOVERY ADMINISTRATION CODE 0 ,~., FAIR C O MPETITION FOR THE LUMBER AND TIMBER PRODUCTS INDUSTRY AS APPROVED ON AUGUST 19, 1933 BY PRESIDENT ROOSEVELT WE DO OUR PART 1. Executive Order 2. Report of hearing submitted to National Recovery Administrator Johnson by Assistant Administrator Dudley Cates ---. Q118 . as appr ved by President Roosevelt A~• . ... ..... 0-: :::: l 1 U. . DEPOMTOWt' L, _ _:::.::,:..:,.::.;, ___ ..,_...,. li!NflRD STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 For sale by the Superintendent of Documents, Washington, D.C. ---- • - • • Price 5 cents

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I

PAGE 3

EXECUTIVE ORDER CODE OF FAIR COMPETITION FOR THE LUMBER AND TIMBER PRODUCTS INDUSTRIES An application having been du]y made, pursuant to and in full com pliance 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 Lumber and Timber Products Industries, 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 recommendations and findings with respect thereto, and the Administrator having found that the said Code of Fair Competition complies in all respects with the pertinent provisions of title I of said act and that the requirements of clauses (1) and (2) of subsection (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. Approval recommended: HUGH S. JOHNSON, Adminis t rator . The WHITE HousE, August 19, 1933. FRANKLIN D. ROOSEVELT.

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• AUGUST 12, 1933 . To:"' THE ADMINISTRATOR, N.R.A. From: Dudley Cates, Assistant Administrator. I. Preliminary Statement.-! have the honor to subrnit herewith my report on the Code of Fair Competition of the Lumber and Timber Products Industries, including the hearing thereon. There are attached hereto: Exhibit 1. The Code as finally proposed. Exhibit 2. Certificate of Incorporation and Bylaws of the National Lumber Manufacturers' Association. Exhibit 3. Certificate of Incorporation of Lumber Code Authority. Exhibit 4. Notice of hearing. Exhibit 5. Statement of procedure. Exhibit 6. Economic and statistical analysis of the industry and of the Code. Exhibit 7. Transcript of the hearing. Appendix 1. List of witnesses. II. The Code and the Hearing (Uncontroverted matter ornitted).The Code as submitted by the industries is summarized as follows, with suggested changes in the Code discussed in later sections of this report. A statement accompanying the Code declares that it was submitted in accordance with a resolution dated July 1, 1933, of the Board of Directors of the National Lumber Manufacturers' Association, repre senting more than 70 percent of the output of lumber and timber products throughout the United States, concurred in by 45 trade associations composed of manufacturers of lumber and timber products and by the single wholesale lumber association and the single retail lumber association of national scope. ARTICLE I-PURPOSE The declared purpose of the adherents to the Code is to reduce unemployment in the industries reported, improve standards of labor, maintain a reasonable balance between production and con sumption, restore prices to levels which will avoid further depletion and destruction of capital assets, and to conserve forest resources and bring about sustained yield from the forests. ARTICLE II-DEFINITIONS Paragraph (a) Defines lumber and timber products. Paragraph (b) Defines person. Paragraph (c) Defines Divisions and Subdivisions. (1)

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2 RTICLE 111-ADMI ISTRATIO The applicant organizations propo e to e tabli h a nonprofit corporation nan1 d "Lumber ode Authorit " to a i t the ational Reco r dmini tration in admini tering th pro i ion of th t as t forth in th ode. Provision i to be mad f r m mb r hip or repre entation in th Lumb r Code Authority f r pr s ntati es of the ational Recovery Administration and of the principal divisions of the industries. Any producer is eligible to full participation in the appropriate Division or Subdivision on terms of full equality with other participants. Such Authority i intended to have broad administrative powers in giving effect to the provisions of the Act, and of the Code, including enforcement of Rules of Fair Trade Practice. The Authority is also empowered to designate appropriate agencies for applying the Code in each Division and Subdivision of the lumber and timber products industries. The Authority is solely vested with the power and duty of enforcing the Code. ARTICLE IV-CODE REPORTS AND FEES The Authority undertakes to obtain and compile adequate informa tion as to the extent of observance of the Code and the results obtained under its operation, with power of inspection of pertinent records by authorized agents. Adherents to the Code are to share, in proportion to production, the necessary expenses of maintaining the Authority and its authorized activities. ARTICLE V-LABOR PROVISIONS Paragraph (a) Assures employees the right to organize and bargain collectively through representatives of their own choosing. Paragraph (b) Stipulates that membership or nonmembership in a particular type of labor organization shall not be a requirement of any employee or of any person seeking employment. Paragraph (c) Provides that each employer shall comply with standards of wages and hours and other conditions of employment approved or prescribed by the President. Paragraph (d) Prohibits employment of any individual under 18 years of age, with the exception of boys 16 years of age or over in nonhazardous occupations during school vacations, or if there are no wage earners 18 years of age or more in the families of such boys. ARTICLE VI-HouRs OF LABOR Paragraph (a) Lays down general provi ion for permitting certain persons under defined conditions to be mployed for lono-r maximum hours per week than those prescribed in Paragraph (b). In general, Paragraph (b) proposes maximum hour of emplo m nt of 4 hours per week for logging in all producing reo-ion and 4 hour per week for awmill and other operation , xcept tha a 40-hour we k ro propo d for awmill in the northw t and in rtain oth r mins a

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3 ARTICLE VII-MINIMUM w AGES Except for a few special situations, a schedule of minimum wages is proposed, beginning with 22>~ cents per hour or $10.80 per week of 48 hours in the South, up to 42}~ cents per hour or $20.40 per week of ~8 hours in logging camps of the West Coast and Wes tern Pine Divi sions. ARTICLE VIII-CONTROL OF PRODUCTION Paragraph (a) Empowers the Authority to make estimates of expected consumption of lumber and timber products of each species and allocate quotas of production on the basis of such estimates among the several Divisions and Subdivisions. Actual quotas among Divisions are to be in substantial proportion to production or shipments of each Division during a representative period. Provisions is made for flexibility in allocating quotas, provided modification of quotas is warranted. Paragraph (b) Provides requisite authority and flexibility to the Authority in determining quotas to give effect to the provisions of the Code in respect to the conservation and sustained production of forest resources. Paragraph (c) Provides that quotas for individual operators shall be determined by the Divisions and Subdivisions upon an equitable basis of allocation, approved by the Authority. Provision is also made for modifications in exceptional cases. Paragraph (d) Stipulates that a reasonable minimum volume of production based on practicable operations for each Division shall not be denied to any person within such Division. Paragraphs (e), (j), (g), and (h) Set forth various provisions in regard to allotments that must be observed, one of the most important of which is that no person shall produce in excess of his quota. ARTICLE IX-CosT PROTECTION Paragraph (a) Empowers the Authority in its discretion to establish minimum prices designed to cover the cost of production in the several classifications of lumber and timber products. Such prices shall have due regard to the maintenance of free competition among species, Divisions and Subdivisions and with the products of other industries. Paragraph (b) Stipulates that minimum prices shall not exceed cost of production, determined in accordance with a proposed formula. Paragraphs (c) to (h), inclusive, contain provisions for special treatment of small mills, for establishment of lower minimum prices for products of inferior quality, for maintaining minimum prices as established, for establishing the price of imported lumber, for possible tariff adjustments, for obtaining information as to competition between imported and domestic lumber, and for other purposes. ARTICLE X-CONSERVATION AND SUSTAINED PRODUCTION OF FOREST RESOURCES This article contains a deliberate undertaking by the forestproducts industries in respect of conservation and sustained produc tion of forest resources. It also provides for a conference between

PAGE 8

th cretury of o-ri ultur and th purp f d i ino-prn.cti abl me ur prod u tion of for t r our RTICLE I-p IAL appli an in lu trie f r the of n r in • nd u tainino-REEME T This article mbodi the provi ion of ection 4a of the ational Indu trial R cover Act. RTICLE XII-CA CELATIO OR 10DIFICATIO Adju tment of the Code and of rulings i sued under it are to be made in conformity with any action by the President under ection 10 (b) of th ational Indu trial Recovery Act. RTICLE XIII-MONOPOLIES This article cites that the Code is not designed to promote monop olie and that it shall not be interpreted or administered to suppress or oppress small enterprises. ARTICLE XIV-DIVISION AND SUBDIVISION CODE PROVISIONS This article provides for rules and regulations of Divisions and Subdivisions under Schedule A, insofar as not inconsistent with this Code. ARTICLE XV-VIOLATIONS It is declared that violation of this Code and of the Rules of Fair Trade Practice is an unfair method of competition, subjecting the offender to the penalties imposed by the National Industrial Recovery Act. ARTICLE XVI-RULES OF FAIR TRADE PRACTICE "The rules of fair trade practice for .the lumber and timber products industry, as set forth in Schedule B attached hereto, are specifically made a part of this Code." ARTICLE XVII-APPEALS Appeals may be made to the designated agency of any Division or Subdivision, and appeals from the rulings of these agencies may be made to the Authority. ARTICLE XVIII-EFFECTIVE DATE A 1D TERM! ATION Paragraph (a) Stipulates that the provi ion of the Code a to hours and wage sha ll become effective three day after approval by the Pre ident and other pro ision within ten lay after appr Yal by the Pre iden t. Paragraph (b) Provide that the ode shall terminat on June 16, 1935, or on such earlier date a the tionul Industrial Re ov ry A t may cease to be effective.

PAGE 9

5 The Code was formulat d by representatiYes of th Lumb r and timber products industries during the cours of veral week , with unofficial assi tance fr01n repr sentati es of the ationa.l RecoYery Administration. It was originall r ubmitt don July 10, 1933, and a revised draft, under date of July 28, 1933, giving effect to d irable alterations as brought out in the hearings, ha al o been ubrnitted. After legal notice of the hearing had been duly publi hed, the hear ing opened July 20, 1933, and wa conclud d July 26, 1933. The undersigned Assistant Administrator conducted the hearina, , ith the assistance of members of the staff of the ational RecoY ry dmini -tration, and in the presenc e of repre entatives of the Indu trial Ad visory Board appointed by t h Secretary of Commerce, of th Labor Advi ory Board appointed b y the Secretary of Labor, and of the Consunrnrs' Advisory Board appointed by the Admini trator. R presentatives of the Forest Service of the United States Department of Agriculture were in attendance for part of the time . Responsible representatives of all of the major divi ions of the lumber and timber products industries attended and took part in the hearing, and wide public interest was also manifested by the pre ence of a large audience and a full press complement. To cooperate in giving effect to the provisions of the National Industrial Recovery Act, the lumber and timber products industries appointed an Emergency National Committee. This committee was in general charge of drafting the Code and of arranging for the wit nesses who appeared in its support. In addition, many person not selected by the Emergency National Committee, who claimed interest in the matters under consideration,were heard. Several representatives of Labor were h eard . By means of questioning all witnesses, the A -sistant Administrator sought to develop the issues clearly in full detail. A comple te list of \\'1tnesses ~'ith their affiliations is attached a Appendix 1. All statutory and regulatory requirements were obserYed. III. Summa r y and Conclusions on the Evidence.-l. Hours of Labor (Recommended reduction of weekly hours to 40). Witnesse stated that the lumber and tin1ber products indu trie had been accustomed to operate a comparatively large number of hours per week, approximating 60 in the South and 4 in the 1 T orth west. Accredited representatives of the lumber indu~try in the uth stated that they were willing for their region to accept the r ponsi bility of proposing a week of 48 hours, as con1pared with that of 60 hours w hic h is cust mary (Sheppard, (2) L-6-108). Representatives of the industry in the ~1' est con..,ider d that a ,ve k of 48 hours in the woods and 40 hour in the 1nill w, practicabl , with certain reservations to conform to the sea onal char ct r of important areas of this region (Greeley (3), C-6-16, h; Nt:a. n (4), -4-103 ) . Calculations by the outh rn Pine o iation indicated that a week of 48 hour in the South would pr vide reemployment for 31,250 wage earner ( h ppard (2) L-7-109). On the ha~i . f hours in the 1nills and 4 hour in the wood in the ,r t, 1 t w1 estimated that reemployment would be o-iven t 14,000 \\~ rl~ r (Ruegnitz, (2) Q-4 -1.51; Greeley, (3) -7-17). Thu the two lh tr1ct where the bulk of th industry i located were c tirnnted, on the maximum hours proposed by th jndu tries, to pro-, ;de reemployment 9673-33-2

PAGE 10

6 f r 45,250 p r on , a uIIDno-no hano-in curr nt part-tim mplo m nt of worker . n the ba i of th maximum hour p r w k which ar re om mended in thi r port and with output f lumber and timber product , in luding v ood\ ork, timat d a ontinuing to x e d the depres ed l -vels of th first month of 1933 by 100 p r ent, a \J a th ase in Jun and Jul , it is calculated that additional mplo ment would b availabl for ome 114,500 persons.1 s emplo c in th lumb r and timber product indu tries, not including woodwork, wood n packag , and mi cellan ou industri s, d clined from 419,084 in 1929 to approximately 196,500 in 1931, reabsorption of displaced labor is of paramount importance. Although employment has increased markedly in the several lumber and timber products industries during recent months, there was no difference of opinion among witnesses that much of the increase bas been due to speculative cutting, manufacturing, and purchasing of timber products for the purpose of anticipating higher prices (Compton, (1) B-7-14; Greeley, (3) D-3-21; 30 and 31). During the early months of 1933 the industries as a whole were operating at approximately 16 percent of capacity, with average hours per week of less than 40. For the months of June and July operations were about 31 percent of capacity, with estimated addi tions to the labor force of 31,767.1 After giving due weight to all relevant considerations, the conclu sion has been reached that maximum hours of labor of 40 per week should be established, both for the South and North, as well as for the orthwest, although this represents an average shortening of hours of approximately 7, for the South and North as compared with ,{3 to for the Northwest. There was no discussion at the hearing of the economic effects, so far as the South was concerned, of a still further shortening of the hours of work to 40 per week, except that a representative of labor advocated a work period of less than 40 hours (Green, (3) L-3-66). It is impossible to indicate, therefore, the precise results of establishing a 40-hour week in the lumber and timber products industries of the South, except that it seems clear that corresponding reductions of hours in competing industries will be essential if the relative position of the southern lumber industry is to be maintained (Sheppard, (2) C-2-130, 140, 141). On the assumption that this interindustry competitive equilibrium will be maintained, an increase in volume of sales, permitting an in crease of about 50 percent over recent rates of production, would be necessary to restore employment to as many persons as were occupied with lumber and timber products industries in the South during 1929. As for the Douglas fir industry, which is the principal alternative source of supply in competitive markets to southern soft woods, a work week of 40 hours was propo ed in mills and factories (Greeley, (3) C-6-16) and 48 hours in logging camps (Reeley, (3) C-4-14). A reduction to 40 hours per week in both mills a,nd camps would not provide as much reemployment, n a relative ba i , a the same chedule when applied to operations in the outh ( heppard, (2) P-2-139). 1 Basis of calculation shown In Economic Report.

PAGE 11

7 About 65 percent of total lumber production is absorbed by the construction industry. Therefore sustained improvement in the lumber industry cannot be expected apart from revival of building (Greeley, (3) I-7-51; (6) CC-2-160), particularly construction of resi dences (Compton, (1) B-8-15, 16). Competent testimony indicated that a lag of about nine to fourteen months occurs (Compton, (1) B-16-23) before definite improvement in building contracts is reflected in sustained increase in output of lumber. The lumber industry is more likely to benefit from increased activity in other industries than to be the cause of improvement elsewhere (Sheppard, (2) M-1-111). Accordingly, considerable time must elapse before the effects on volume of employment can be definitely known as a result of establishing a work week of 40 hours. 2. Exceptions to Forty Hour Maximum Work Week.-Seasonal factors of pronounced character are encountered in certain divisions of the timber industry. Fortunately, in the principal producing regions seasonal factors are of no great importance. But in the high Sierras and other districts of the West (Mason, (4) S-2-101 ), operations are impossible during the winter (Johnson, (7) D-1-19), whereas in certain sections of the northern hard and soft wood regions the winter is the period of greatest activity in logging (Osborn, (5) P-2-66). Operations in some areas must be intensively conducted in those seasons of the year when the condition of the streams makes water driving feasible. Moreover, fires, wind storms, and other exceptional causes (Fentress, (6) JJ-3-196, 197) often make it necessary to harvest timber with great rapidity if large losses in our timber resources are to be avoided. For all of these reasons the testimony was con vincing that certain flexibility in the maximum hours of labor per week should be introduced, accompanied by adequate restrictions to prevent such flexibility from being .made the vehicle of abuses (Johnson, (7) C-4-18; Mason, (4) S-4-103). Necessary safeguards are provided (Art. VI, par. (a)) by requiring that average employment in any seasonal operation shall not exceed the standard schedule of hours during any calendar year. Child labor is not a serious problem in the lumber and timber products industries. In the Code as submitted they proposed that no person under 18 years of age should be employed, with certain exceptions, but in order to obtain uniformity in the various industrial codes a minirnum age of 16 hR.s been substituted. 3. Afach-i.ne Honrs.-In contrast with many other industries, only a comparatively smal1 number of lumber manufacturing establishments operate more than a single shift. Establishments operating more than one shift are, however, of considerable importance in volume of production (Sheppard, (2) M-3-113; Greeley, (3) C-2-12, 151. Under present operating conditions with capacity greatly in exce~s even of the accelerated output of recent months, there has been no special problem of two or three shift operations, but this is a possibility if maximum hours of employment per week are placed at 40. This contingency has been provided for in drafting the Code. Article VIII, providing for control of production, at the same time places an automatic limitation on the abuses of excessive machine hours. It was testified at the hearing that the abuse known as "stretch out" is not characteristic of the l~mber and timber products industries (Greeley, (3) H-2-40).

PAGE 12

4. 1rage . . -.. \. Y ry high 1 roporti n of the m1 lo in the lurn b0r and tim her pr du t indu tri nro cla ifi d a un kill d and mi kill
PAGE 13

9 Since hours of en1ployment for persons classified a s laborers in sawmill occupations had declined to 38.0 per week during 1932, it is evident that total earnings, based on a weighted averR.ge of 20. 5 cents per hour represente~ inadequate we~kJy in~ome. ~ay rolls for_ the entire lun1ber and tnnber products 1ndustnes had, 1n fact, declmed from $579,000,000 in 1929 to approximately $110,000 , 000 2 during 1932, with the result that an adequate contribution to national purchasing power was not obtained from these industries, which were the fourth largest employers of industrial labor (Comptron, (1) B-12-19). One of the spokes1nen for labor contended that wages should be greatlv increased, but he presented no specific evidence (Weaver, (5) H~2-37 to 39) as to what increases he considered justifiable nor as to how the industries in question could operate if they paid substantially higher rates than those proposed in the Code which was presented. On the basis of average rates of pay and number of hours of employment per week, average earnings for laborers in sawmills for the United States in 1932 had reached the unsatisfactory level of $7. 78. Corresponding weekly earnings for laborers in southern sawmills were $4. 94. It is true that declining prices of commodities somewhat mitigated the effect of these inadequate wages, and on the basis of 1929 3 prices the average weekly wage for sawmill laborers in the United States in May, 1933, would have had the purchasing power of $11.19, while that of employees in southern sawmills would have been equal to $7 .11. There is imperative need that purchasing power derived from the lumber industry be incr~ased, and this can be accomplished if the industry is enabled to pay and does pay higher wages. Although the wage schedules proposed by the southern industry represent an important advance over those at present in force, somewhat further advances are believed to be justified. After careful consideration of the evidence presented in the hearing, as well as that prepared by the Division of Planning and Research of the National Recovery Administration, it was concluded that wage rates at least equal to those paid in 1929 were desirable and possible, provided that 1929 rates equaled or exceeded 30 cents per hour. However, a large number of employees in the lumber and timber products industry, probably amounting to 80 percent of the total, received less than 30 cents per hour in 1929. -No group of laborers in logging camps or mills were represented as having received less than 20 cents an hour in 1929, and it is recommended that groups which received this inadequate wage should have such rate increased by 15 percent with increases on a uniformly diminishing scale for each cent per hour between 20 and 30 which was received in 1929 by any wage group. Application of this formula would establish minimum wages in the lumber industry as 23 cents per hour, and this would be the equivalent of 34.74 cents per hour in May 1933, on the basis of 1929 prices4 or 62}~ percent in excess of the weighted average of wages5 paid to employees classified as laborers 2 Assuming that 1932 pay rolls declined equally with lumber production as r eported by the Census for 1932. 3 Cost of living 1929= 100. ' Adjusted to 1929 cost of living=lOO. 6 Also adjusted to the cost of living, 1929.

PAGE 14

10 in ou b rn a, n1ill in 192 , d tail d ta i tic for 1929 beinO' unuyailabl . On th ha i f in r a d lab r co for three important ftv ood r O'ion , purcha ing pow r will imn1 diately be in rea ed 32,500,000 p r annum, a urning lumb r production only at th 1932 olum .6 om 5 p r nt of all n1plo e in the lumber and timb r produ t indu tri \ ill be dir ctly affect d and b nefited by th r omm nd d minimum v ao-e rat , in addition to th 114,5007 who, it i hop d, will b add d to th pa~ roll . 5. Labor Organi zati ons. Labor is not highly organized in the lumb r and timb r product indu tries. The principal ex ption to thi gen ral condition is found in the West and orthwe t (Ruegnitz (2) -2-163), where the Loyal Legion of Logger and Lumbermen (Greeley (3) E-2-24), commonly known as "The Four L" i of coniderable importance. About thirty percent of total employee in th r gions where the Four L is established are includ d within it mem bership (Ruegnitz' letter 8/7 /33). This organization eno-age in collective bargaining (Greeley (3) E-2-24) (Ruegnitz (2) S-2-163) on behalf of its membership and has been in considerable part re pon ible for the fact that wages and working conditions are more favorable in the West and Northwest than in other timber producing areas. Certain witnesses stated that the Four L was a company union (Green (3) 0-4-84; Noral (8) DD6 163; Haas (5) J 3-44), but the representative of the Four L testified that his organization was conducted for the benefit of employees, with l ocals at operations under 125 different managements, and that in bargaining with employer members of the Four L were at liberty to choose nonmembers to represent them (Ruegnitz (5) K-1-45). Representatives of the log ging and manufacturing industries declared that membership in the Four L was not a condition of employment or of preference in the territory where the organization is located (Greeley (3) E-2-24). 6 . Cost Protection.-A.n1ple evidence was produced at t , he hearing that the industries have operated on an unprofitable basis for several years and that they did not share in the years of prosperity terrninatmg in 1929 (Compton (1) B-5 12). Their financial position 9t present will not permit the assumption of additional charges un l ess such increased costs as may be assumed can concurrently be recovered by equivalent adjustments in prices (Compton (1) B-10-17) for lumber and timber products (8tibolt (4) V-2 116; Mason (4) P-2-88). Consequently it was proposed, both in the Code (Art. Ix.) and in the hearing (Stibolt (4) V-4-118 to 121), that reasonable osts hould be determined and that lumber and timber products hould not be sold or offered for sale at prices which did not cov r uch co ts . Public protection against abuse of this power to fix minimum prices i essential. This can largely be accomplished by having a mathematical formula for determining what con titutes co t prot c tion. An additional protection is that of intere .. ted and informed buyers. Repre entativ s of th national retail and whole al a o ciation are to be member of the Lumber Cod Authorit . Det rmination of prices i required to come b for th Authont in order to prevent unJair omp titjon between divi ion as w 11 a in th public int r t. R pre ntatives of the Ad.mini trator ar al o to sit c R e f er to Eco n o mi c R e port. 1 Refer to e c onomic report.

PAGE 15

11 on the Authority. If in the exercise of their interested and informed judgment on prices the retail and wholesale repres('ntatives believe unduly high prices are being proposed or are in effect, the Administrator is -instantly informed through his own representatives on the Code Authority and has an immediate veto. Inasmuch as forests constitute a national asset of the highest importance, they should not be utilized in an improvident manner. During recent years, however, restricted markets for timber tracts, combined with heavy carrying charges (Compton (1) C-3-26), have encouraged uneconomic operations (Greeley (1) H-10-85), to the point where timber was converted into lumber and wood products in some instances at an actual out-of-pocket operating loss (Mason (4) Q-1-91), not to speak of no recovery whatever on the wear and tear of plants and equipment. Conversion of timber under such conditions always entails waste by forcing the operator to leave low-grade logs in the woods and burn low-grade material at the mill (Greeley (1) H-10-85) (Denman (Sa)-E-2-22). National interests are injured by these. practices (Compton (1) E-2-25), and there is no apparent method of terminating such abuses (Stibolt (4) V-1-115) except by forbidding the sale of timber products at prices which do not cover cost of production (Stibolt (4) W-4-124). Competent wit nesses testified that the responsible elements in the lumber and timber products industries deplore the unnecessary destruction of timber resources, but that financial pressure and the competition of many small producers of timber (Greeley (1) F-3-55), including farmers, often without cost records (Sells (6)-T-2-115), prevent the orderly harvesting of the nation's forests by those who favor a constructive policy. In general terms, it can be stated that in past years and especially in certain regions, although in a constantly diminishing degree, capital has been primarily interested in standing trmber (Fentress (6) 11-2-189; (6) LL-1-206; (6) MM-2-212-213), whereas the chief concern of labor is in connection with logging and milling operations and the wood working industries. In view of the primary object of the National Industrial Recovery Act to increase employment and purchasing power, immediate emphasis has been placed on logging and manufacturing activities in preparing the Code of Fair Competition. This does not imply that the rights of owners of standing timber have been sacrificed, but for the present they have been subordinated to the necessity of placing more men at work at higher wages (Fentress (6) MM-2 to 4, 212-14). According to a study by the United States Forest Service in 1932 nearly 41 percent of the standing timber in the United States was owned by the Federal, State, and local governments, and 59 percent by lumber and timber companies, farmers, and others. Prices for timber lands had a rising tendency for several decades, but that tendency was interrupted during the nineteen-twenties , and current prices are usually far less than those which appear on the books of many if not most of these owners (Compton (1) B-11-18; Fentress (6) HH-2-185; Greeley (1) F-13-65). Because of forced sales of timber tracts for tax purposes (Greeley (4) Z-3-138), because of exhaustion of financial resources, and becaus e of the uncertain outlook as to timber values, it is difficult to esta blish a current fair value for standing timber (Sheppard (6) FF-4-175 ;

PAGE 16

12 runnn (511) J -O). v ral witn e d clar d, how er, that d t rminati n f urr nt fair alu can b accompli h d ( heppard (6) FF-3-174-176; mbro (7) J-1-61; r 1 y (4) Z-1-136). It , ould b ontra1 to public poli to p rmit the introduction of un f rmula for t protection wbi h would att mpt to re stabli h uch ulu of stumpag a pre ail d during the earl nineteen t,v nti , wh n p uk price wer r ached. evertheless, converters of tin1ber into u eful product should pay or be paid a fair price for the ra n1ateri 1 consumed, whi h in thi a is stumpage. In no oth r mann r can the lumber and timb r product industries be rehabilitat d and as urance be had that the e indu tries will afford regular and in r asing wages to that l arg number of per ons who loo k to them for emp loyment. "Minimum price" is not an absolute term, but can be calculated according to arious formulas which are defensibl e . There are, how ever, definite limitations within wbich any specific minimum price must be established. The lower limitation would ha e to include out-of-pocket operating expenses; the upper limitation would, in addi tion, include recovery of capital. Profit in no case should constitute an element of minimum price authorized by governmental authority. Little difference of opinion exists as to the elements in a sound formula for affording cost protection on such matters as the inclusion of wages, materials and supplies, necessary selling expense, overhead, insurance, and taxes (Greeley ( 4) Z-3-138 to 156; Stibolt (4) Y-4-134). Interest actually paid should be allowed (Greeley (4) AA-7-145). Aside from direct-out-of-pocket costs, which obviously should be allowed, important questions of principle arise as to recovery of capital and by means of a minimum price assuring ability to meet financial obligations. It is clear, however, that if the lumber and timber products industries are to continue as privately owned and operated enterprises, they have to receive a reasonable price for standing timber and to amortize the plant and equipment necessary for converting timber into lumber and timber products. These considera tions have been kept in mind in preparing the proposed formula for cost protection. Of some 20,000 sawmills in the United States, more than 15,000 are valued at le ss than $5,000 each (Co1npton (1) B-6-13 ), and a large number of farmers sell small quantities of logs to sawmills, or else operate sawmi lls themselves. Tota l volume of logging and manufacturing operations by farmers is of considerable importance (Townsend (10) B-487,488). These farmers and small operators frequently do not keep accounts, and even some of the large mills are carrying obso lete and excessive plant and equipment on their books , with corre sponding exaggerat ion of depreciation charges (Se ll s (6) T-2-115; Denman (4) EE-3-159). Adequate, uniform, and realistic acc ounting, particularly among small establi shments, is not characteristic of this indu try (Town end (10) B-491 ) . A lthough proper charges for depre ciation constitute a valid e lement of cost, this e lement cannot be included in the proposed cost protection f rmula as applied to the lumb r and timber produ ts industrie until n1ore and better data are ava il a ble. P ermis sion t tablish minimun1 price for lumber and timb r pr du t i b li eYed t o b n es ar to nrnk po sib l th increased wages h e dul e -v hich ar r comm nd din thi r port. But th neces-

PAGE 17

13 'Sity of devising a cost protection form~a also affords an _opportunity to initiate a comprehensive conservat10n and reforestat10n program of the widest significance, such as the industries have agreed to undertake in accordance with the stipulations of Article X of the Code. 7.' Conservation and Sustained Production.-Article X of the Code as originally submitted, was redrafted in consultation with the Forester of the United States and spokesmen of recognized conservation agencies (Compton (2) J-5-96). The Forester then appea.red at the hearing and approved the revised Article X on condition that the industries undertake to bring about conservation and reforestation, which was agreed to as a binding covenant. This action elicited the following statement by Major R. Y. Stuart, Forestor of the United States: "May I say, Mr. Administrator, in my judgment this article as it has been amended to my mind opens up a new era in forestry, forest production, forest protection, and we in the Forest Service will very eagerly do all that we can not only to cooperate with the industry in the performance of its obligations, but also put forth our utmost efforts to have the public, particularly the Federal Government, expend its cooperative effort to tliat end." (Stuart (2) T-1-115). It is gratifying to remark the fact that an issue which has been the subject of such prolonged controversy is finally concluded by the voluntary action of the lumber interests. After many years of studies and conferences, there appears to exist a clear understanding between the lumber interests and the Forest Service on the many practical problems which are involved in giving effect to the principles of conservation, as well as a meeting of minds as to their solution. I therefore recommend that the further negotiations and commitments provided for in the revised Article X be approved, but on the under standing that in the event this article is not found to be effective, a further hearing or hearings may be called to revise it. Those who use lumber and timber products should pay for the replacement of such products. As one of the factors of minimum price, subject to market conditions, it is proposed to include an amount adequate to cover the cost of conserving and replacing as much timber as is harvested. Estimated additional charges which will have to be imposed upon each 1,000 feet of lumber in order to bring about this important result are surprisingly small. They have been obtained from the Forest Service of the United States Department of Agriculture and appear in detail in the report of the Division of Planning and Research. For a few of the more important species the increased price for each 1,000 feet of lumber in order to accomplish full conservation and replacement is estimated by the Forest Service as: 25 cents to 45 cents for Douglas fir, 75 cents to $1.00 for southern pine, 50 cents for ,central hardwoods, 25 cents for redwood . If the cost protection formula can be utilized for accomplishing the major objectves of conservation and reforestation the device will be amply justified. 8. Production Oontrol.-Evidence presented at the hearing was uniformly to the effect that much of the recent increase of activity in the lumber and timber products industries, perhaps as much as two thirds, represents speculative operations or operations based on :Speculative buying (Compton (1) B-7-14: Greeley (3) F-3-30 to 32). 9673-33-3

PAGE 18

14 Locrcrincr and awmill activitie hav continued at a low le el for so pro ra t d a p riod of tun ( r 1 y (1) F-4-56) and capacity is so err atl in xc of ev n th nlarg d op rations of r cent 1nonths ( F ntr (6) II-3-190) that ontrol of produ tion i imperati e if r n w d and a centuat d d moralization of the indu tries and dislo ation of labor ar to b a oid d (Fentr (6) LL-3-20 to 209). Th r v u evid n ( tib lt (4) "\i\ -1-121 and 129; al o (5) E-4-20) that par icularl r in th a e of lurnb r, demoralized elling b lo, cost i pr bable, e-v n wh n th volun1 of production is ontrolled. A 1 g produ .., nrnny item of lun1b r, some valuable, some nearly worthle . Th valuabl mu t carr the nearly w rthle , and a balan mu t b truck betw en profit on the on and loss on the oth r, if th co t of on r ion i to be recov r d in price ( tibolt (4) W-1-121). Individual op rat01 : , with def ctive cost-accounting ~y tem , are not on1petent to det rmine what schedule of price will in the long run be equi alent to th ost of manufacture. The lmnber op rator without knowledge of his co ts has the power to undermine the whole price structure, and his incompetence imperils e en th be t inforn1ed of hi competitors. pplication of the principle of production control presents many difficulties. One of the mo t controversial subjects discussed at the hearing was whether control of production would be equitably admin istered (Fairhur t (8) Z-6-143; Johnson (7) G 7-38; Denman (4) FF-4-167). The expei:ience of the Lumber Survey Committee of the United States Timber Conservation Board, which has made quantity surveys of expected consumption for the past two years, has demonstrated the feasibility of deterniining aggregate quotas for the lumber industry as a whole and the Divi ions and Subdivisions thereof. Several persons contended that the Administrative machinery would inevitably fall into the hands of large operators (Fairhurst (8) Z-5-142; Walter Johnson (7) C-3-17). Others recognized that exper ience would be required to determine aggregate quotas for the lumber industry as a whole, which would at the same time maintain a reason able balance between production and consumption and assure an adequate supply of timber products, as well as to make specific allot1nents to the various producing regions and to individual operators (Greeley (1) F-10-62 and 64). In the draft code as submitted, it is pYoposed that "Quotas for persons within respective Division or Subdivisions shall be determined by the d ignated agen ies thereof in accordance with an equitable ba i 01' method of allocation * * *" appro ed b the administrative organization to be e tabli hed. ague language of this haracter is not acceptable. Allotment should be based upon a d fl.nit formula compo ed of factors which can be mathematicall determined from ascertuina ble fact . The formula hould b uch that c ch operator could virtuall. calculate for him elf the allotment which h should rec ive. ny oth r arrangement would create u pi ion and ontribut to th r alization of that appr hension which wa expre s d by vcral witness (W. Johnson (7) E-4-25 and -7-3 ) who omm nt don th propo al for control of production. Pro i ion hould b n1ad for em rg ncy ituation , uch a timber aff c t d by fire, wind, and in cct (F ntre (6) JJ-1-195 to 197) . ... \.pp al on allotm nts hould be po ible at r a onable co t and with the a urance of prompt de i ion (Gr cl (1) H-50 and 81). Full publi city should b pro id d as to th determination of quotas

PAGE 19

15 and allotments and as to all appeals and decisions thereon. To give effect to the foregoing suggestions, an alternative proposal to that submitted by the lumber and timber products industries has been prepared and is recommended herewith. Many persons within the industries de sire to place in the Code of Fair Co1npetition (G reeley (1) F-9-161 and 162) a provision that additional sawmills and wood-working establishments should not be permitted in view of the recognized over-capacity which at present prevai l s . After due consideration and in the light of representations made by the National Recovery Administration, limitation of new capacity is not proposed in the Code. In revising the production control proposals which were submitted by the industries, attention has been given to the principles outlined above. The revised draft provides for mathematical determination of production, quotas, for the purpose of balancing consumption and production, while assuring adequate supply; it stipulates that all producers of lumber and timber products are entitled to and shall receive allotments; it provides definite factors which must be given consideration in the determination of quotas and allotments, yet preserves the principle of self-go vernment in industry by permitting each Division and Subdivision to adjust the several elements of the formula to its own peculiar conditions; further flexibility is provided in that exceptions are permitted for adequate cause; simple, inexpen sive and expeditious methods of appeal are assured to those who believe that specific allotments have been inequitable; publicity for all official acts is required; finally, it is recognized that improvements in constructing and applying the formula can undoubtedly be made in the light of experience, and revision is therefore permitted and expected. Procedure for establishing quotas, as recommended in Article VIII, should be based upon that utilized with pronounced success by the Lumber Survey Committee of the United States Timber Conservation Board. This procedure has the advantage that it can be promptly applied on the basis of date already in hand. It is correct in basic principle and is subject to further refinement in the light of statistics to be made available by the Code provisions and the facilities under the Code for analyzing and applying the statistics. The central factor in this method is inventories. The right volume of stocks adequately to meet the needs of consumption under varying conditions of demand is determined from statistical evidence, and pro -duction is regulated to maintain such stocks. This method of han~ dling production control has been effectively applied in certain important industries. While the language of Article VIII does not in terms prescribe such method, it does permit it. 9 . .i.11onopol ies.-The Code as recommended will not result in monopolization in the lumber and timber products industrie , nor promote monopolistic prac tice s. As stated a bove, there are now some 20,000 sawmills in the United States, of which more than 15,000 are sma ll e nterprises whose mills are valued at less than $5,000 each (Compton ( 1 ) B-6-13 ) . The Code as recommended contemplates their continued operation and guarantees free access to the market to new enterpris es, subject to the same limitations as are applicab l e to those already in the market, namely, that prices shall not be below the axerage cost of production as and when determined by the Code

PAGE 20

16 uth rit. , and pr du tion hall not ex e d the allotment mad by uthorit in that Divi~ i n r ubdivi. ion in " hi h u h n w nt rpri are lo ated. Th op ra ti n f the e two limitations i ubj t to uperv-i ion whi h will ad quat l af guard th public int r again t monopoli ti practic in unr a onable or unwarranted re tri tion upon ith r pric or produ tion poli i . , ubje t to th two lin1itation , the ompetitiv forces within th indu try will be in a tive operation, with the n ce ary incentive to k ep price rea na ble furni h d by th competition f ub titut n1aterial , and th ne ary incentiv to obtain maximum production furni hed by he n tant pr sur on th indu t1 of carrying charge for stumpage and xce i pr -du tion capacity. In view of the number of operator in the indu try there i no danger of domination of prices or pr duction by any ingle operator or any group of operators. The ode a recommend d protects the mall enterpriser by assuring him a production quota and minimum prices that will not be below the ay rage cost of pr -duction in his Divi ion. The numerical superiority in the indu try of small enterprises and the form of organization of the ag ncie~ of the uthority are in themselves safeguards again t anv oppr iYe or discriminatory operation of the Code again t the1n. 10. Admi nistrative Agency.-The lun1ber and tin1ber product~ industries' Code in substantially the form recon1mended in thi report would necessitate considerable admini trative machinery for its enforcement. The lumber and timber product indu tri are prepared to assume the responsibilities of self-go\-ernment (Greeley (1) F-14-66), subject to governmental supervision, and they therefore propose to create a Lumber Code Authority which hall be a nonprofit corporation with the board of directors con1posed of repre entatives of the several producing regions. Such an Authority should be approved only if membership in the component Divisions and uhdivisions in the several producing regions and among the various constituent industries shall be open to all loggino-operators and manufacturers of timber products on equal and reasonable term . Approximately 73 percent of all lumber and timber product~ is included in the membership of the trade association \\hich would be represented in the Lumber Code Authority. This is a high deo-ree of organization for any industry. It would therefore eem to be the iogical agency to which self-government within the industries h uld be entrusted. Sufficient provision was not made in Article III a ubmitted, for eliminating the abuses which have largely contributed to the pre ent un atisfactory state of the timber industrie . The proposed ode Authority should be authorized immediately to prohibit trade practices which have already been declar d to be unfair by the Federal Trade Commission. It hould also be empowered to devise and apply fair trade practi e regulation , designed to as ure adequate supplie of well-manufactured lumber and timber products at fair price , to contribut to con ervation and reforestation, and to enable the industrie"' to furni h steady employment at living wage to tho e hundred of thou and of employees who look to them for a livelihood. rtain s From " Lumber and Timber Information", published by National Lumber Manufacturers Association

PAGE 21

17 uggested amendments of and additions to Ar~icle III are intended to bring about these results. Some of the specific fair-practice proposals are not acceptable (Gerrity (9) Q-4-251 to 273) (Gillman (9) W-4-274), particularly those that deal with retail distribution (Tozzer (10) EE-6-311), and this section of the Rules of Fair Trade Practice as submitted by the industries is not included in the draft recommended for your approval. It should be returned to the industries for revision. As proposed by the industries, retail lumber dealers would in many circumstances be given the status of local lumber monopolies to the detriment of the public (Gerrity (9) R-2-254). This should not be allowed. It should be possible for the industries, in consultation with the wholesale and retail distributors of their products, to devise means of assuring orderly, fair, and economical distribution, not subject to the objec tions which have been outlined. They should be required to submit revised proposals by January 1 , 1934. In addition to the Rules of Fair Trade Practice which are applicable a.like to all Divisions and Subdivisions, the industries proposed numerous exceptions and additions which are intended to apply to particular situations. Son1e of t_hese are inconsistent with the general Rules of Fair Trade Practice. Need for prompt action in authorizing the industries as a whole to adopt their Code and put it into effect does not afford sufficient time to harmonize these exceptions and additions with the general Rules. Consequently, it is recommended that the Rules of Fair Trade Practice shall not come into force until November 1, 1933. During the intervening period opportunity will be afforded to effect revision, satisfactory to the Administrator, in the Rules as proposed by Divisions and Subdivisions and to have them become effective on the foregoing date. Nevertheless, the time is most opportune for eliminating certain unfair methods of competition which have afflicted the lumber industry and also for introducing improved standards of production and marketing which will be of permanent benefit. Even though a small portion of the Rules of Fair Trade Practice, as submitted by the industries, is not in such form that it can be recommended for immediate approval, a requirement that fully comprehensive rules of fair trade practice shall be prepared and put into effect with the approval of the Administrator should be one of the conditions of authorizing the Code as to hours, wages, cost protection, control of production, and other aspects of fair competition. Branding or marking of lumber and timber products has been officially endorsed by producers, distributors, and consumers for more than ten years, and the principle is incorporated in '' American Lum~ ber Standards", which establishes the bases of lumber grading. It has also received the approval of the United States Timber Con~ servation Board, which contains the following statement in its "Conclusions and Recommendations", dated June 8, 1932: "Regulations which would require that shipments of lumber and timbers in interstate commerce be graded and identified in accordance with publicly recognized standards of grading and inspection are essential to the protection of the public interest. Unless the industry

PAGE 22

1 pee lily and effectively n un1c thi re pon ibilit , Federal reo-ula ti n .. omparabl t the oall d 'pur food Ja,v 1nu t be invol-ed." The l randin~ r 1n rhnrr f lumb r timb r i lath, hingl .. , and fl ring in uch a mann r a~ 1 arl. and p rm n ntl t in ic t (a) p ri ; (b) whether th dim u n ion i tandard () o-rad ; and ( d ) dryn , hould b ta li h d a tandard pr:1 ti to th xt0nt t1i'.1t th practical con ideration .. invol v d p ~rmit and a on a .. r a n . hl~ and " orkable provi i n n b d v lop cl for m hn~ u h pra tic eff ctjve . Thi practi e i not propo e d b th indu try in th d a pr nt d. The indu tr hould be r quir d t d v lop and pr nt a definite plan of marking lumber an ther for t produ t and ubmit it to the Pre id ent for approval n t la L r th n ,January 1 1934. ertain diff e rences of opinion among produc r n f W v t rn pin_ were set forth at the hearing. group of produc r of w t rn pin lumber in California did not fee l that they w r proper l r r pre ~nte d by the Western Pine sso c iation, asserting that differences of condi tion in their region call ed for their r ecognition as a sepa rate diYision under the lumbe r code. Sufficient evidence was not pres0nted to indicate that these producers had problems so diff erent in chara t e r from other establ ishments in the west ern pine territory as to ju tify special treatment under a separate code. It is believed, however, that the group of lumber manufacturers in question, or.o-aniz e d recently under the name of the California White and Sugar Pine ssociation, shou ld be g i ven appropriate representation in the administration of the Code. A group of small mfl.nufacturers of railway ties in the orthwest wished to be exempt from certain provisions of the Code, as far as concerns the West Coast lumber industry. The representati ve of this g r oup (Fairhurst-(6)-AA-4-150-151 ) did not offer conv in c ing reasons why the standards to be observed b y the West Coast industry sho uld not be applicable to the small operators whom he represented. A group of wood package manufacturers objected at the hearing to being included under the wood package division, l a rgely for the reason that they preferred to have their o,vn code and consequent direct access to the Administrator, instead of through the channel pro vided in the Lumber and Timber Products Code (W il son -(9)-B-1-210 ; 212; 213). No good reason is apparent for excepting this group. A somewhat s imilar situation was shown to exist in the wood workin g industries. While 90 percent of the production in those industrie s desire to participate in the present Code of Fair Competi t i on, a few highly spec ialized wood-working establi hment expre sed a wi s h to submit a separate Code (Smith-( 7 ) -N-4-84). dequate grounds for negotiating a separate code for this mall fra tion of the woodworking industry were not shown. l ertain West Coast operators urged that exports shou ld be exempt from production control. The West Coast di trict sbip over half of all lumber exported. These exports constituted about 16 percent of the entire production of the West Coast di trict in 1929 and about 18 per ent in 1932. t least 40 percent of all We t Coast mill hare in thi business (Greeley -(6)-Y-5-141). No export item can be pro duced from the log without producing a sub tantia] "side cut".

PAGE 23

19 On the average the "side cut", which must be sold in the United States, is more than one third of the product of the log. Export orders do not differ materially in volume, period of negotiation, or period of shipment from domestic water-borne business, and no greater necessity for separate treatment appears in case of export than in case of domestic cargo business. No adequate showing of the peculiarity of export business was made to warrant exemption from production control. To enable domestic producers to meet foreign prices, however, eA'J)Ort business has been exempted in the Code, Article IX (a) from the requirement of maintaining cost protection prices. In spite of the comparatively high degree of organization and unanimity of opinion in the industries, it is evident that in some of the Divisions and Subdivisions proposed to be established under the Code, there are a number of substantial, organized, minority groups. These should be accorded reasonable and equitable representation in such governing body of each Division or Subdivision as may be established. While it is proper that minority organizations within a logical compet itive industry grouping should not be accorded the status of separate entities, it is not proper that they be denied fair proportionate representation in the Division or Subdivision governing body. This has been accomplished in the proposed organization of the Lumber Code Authority and should be accomplished in the Divisions and Subdivisions. 11. Suggested Conditions of Approval.-The lumber and timber products indu~tries clearly desire to cooperate in achieving the purpos es of the National Industrial Recovery Act. They prepared their Code with care and with the intention of increasing emplorment by shortening hours, of expanding purchasing power by raising wages, and of placing the industry on a sound basis by providing for the elimination of trade abuses. These efforts deserve governmental support. It is my opinion, however, that maximum hours of labor should in most instances be somewhat less than those proposed by the industries themselves and that wage rates should begin at a somewhat higher minimum. I the ref ore recommend a uniform work week of 40 hours as a maximum in both camps and mills and a minimum wage schedule of 23 cents per hour in the South and 42.% cents an hour in the West Coast and western pine areas, with properly adjusted gradations of rates for other producing regions. Other changes in the proposed Code which I regard as important have been discussed in earlier paragraphs, and all proposed changes from the Code as submitted by the industries are included in the attached draft, which I recommend for your approval. 12. Findings.-The Assistant Administrator finds that: (a) The code of the Lumber and timber products industries as recommended complies in all respects with the pertinent provisions of Title I of the National Industrial Recovery Act, including, without limitation, subsection (a) of Section 7 and subsection (b) of Section 10 thereof; and (b) the National Lumber Manufacturers' Association, which submitted the Code, and the forty-five Divisional associations, listed in the letter of transmittal, and concurring in the submission, impose

PAGE 24

20 no in quitabl r tri tions on m mbership ther in and are truly r pr entative of th lmnber and timber products industrie , and ( c) th od as r c01nmended i not design d to pron1ote monopolies. or to liminate or oppr s small enterprisers and will not op rate to di criminate ao-ainst them, and will tend to eff ctuate the polic of Titl I of the ational Industrial R co er t . Re pectfully ubmitt d, D DLEY ATES, Assi tant Admini trator.

PAGE 25

CODE OF FAIR COMPETITION FOR THE LUMBER AND TIMBER PRODUCTS INDUSTRIES AS RECOMMENDED BY THE ADMINISTRATOR AUGUST 18, 1933 Statement in Transmittal The National Lumber Manufacturers Association, representing manufacturers of lumber and timber products throughout the United States, pursuant to the authority of the National Industrial Recovery Act and for the purposes of eli1ninating unfair competitive practices, reducing and relieving unemployment, improving standards of labor, maintaining standards of quality, rehabilitating the lumber and timber products industries, bringing about sustained-yield forest management and permanent sources of employment, conserving natural resources, and otherwise effectuating the policy of the Act, hereby submits for the approval of the Pre ident the following Code of Fair Competition for lumber and timber products industries. By resolution of the Board of Directors July 1, 1933. Concurred in by the following Associations: American Walnut Manufacturers Association, Chicago, Ill. Atlantic Millwork Institute, New York, N.Y. California Redwood Association, San Francisco, Calif. Douglas Fir Door Manufacturers Association, Tacoma, Wash. Douglas Fir Plywood Manufacturers Association, Tacoma, Wash. Eastern Woodwork Bureau, New York, N.Y. Eastern Shook & Wooden Box Mfrs. A sn., Boston, Mass. Egg Case Manufacturers Exchange, Chicago, Ill. Hardwood Dimension Manufacturers Assn., Louisville, Ky. Hardwood Manufacturers Institute, Memphis, Tenn. Indiana Hardwood Lumbermen s Assn., Indianapolis, Ind. The Mahogany Association, Inc., New York, N.Y. Maple Flooring Manufacturers Assn., Chicago, Ill. Millwork Cost Bureau, Chicago, Ill. National Door Mfrs. Assn., Chicago, Ill. National Hardwood Lumber Assn., Chicago, Ill. National Oak Flooring Mfrs. Assn., Memphis, Tenn. National Federation of Wooden Package Assns., Chicago, Ill. National Assn. of Wooden Box Mfrs., Chicago, Ill. National Screen Assn., Chicago, Ill. National Stained Shingle Assn., St. Paul, Minn. National Woodwork Association, Chicago, Ill. Northeastern Lumber Mfrs. Assn., New York, N.Y. Northern Hemlock & Hardwood Mfrs. Assn., Oshkosh, Wisc. Northern Pine Mfrs. Assn., Minneapolis, Minn. Pacific Northwest Box Association, Seattle, Wash. Pacific Northwest Loggers Association, Seattle, Wash. Pacific Veneer Package Association, San Francisco, Calif. Plywood Package Institute, New York City. Philippine Mahogany Mfrs. Import Assn., Inc., Los Angeles, Calif. Southern Cypress Mfrs. Assn., Jacksonville, Fla. Southern Pine Association, New Orleans, La. Southern Hardwood Box Association, Chicago, 111. Southeastern Box & Shook Mfrs. Assn., Charlotte, N.C. (21) 9673-33--4

PAGE 26

22 y, w York ity. d n Bo Manuf actur r , an o iation of W od n Box Manufacturer , of ati nalmerica.n Whole ale Luml er n., In ., w rk, . Y. a.ti nal R tail Lumber Deal rs A n., Wa hington, D.C. ODE OF FAIR OMPETITIO ART. I. Purpo .-Thi i an undertaking in indu trial If-gov rnment under uch public anction as are ne es ary to carry out in the lumber and ti1nber products indu tries the purpo e of the ational Indu trial Recov ry ct. It i the declared purpo e of the lumber and timber product indu trie ~nd of the adherent to thi od , to reduce and relieve unemploynrnnt in 3.id indu trie ; to improve the tandards of labor therein; to maintain area onable balance b tween the production and the con ump ti on of lumber and timber products; to re tore the prices thereof to levels which will avoid the further de pletion nd destruction of capital assets; and to conserve forest reources and bring about the sustained production thereof. ART. IL Definitions.-(a) "Lun1ber and Timber product " as used herein i defined to include (1) log , poles and piling; (2) sawn lumber and products of planing mills operated in conjunction vvith sawmill ; (3) shingles; (4) woodwork (mill work) including products of planing mill operated in conjunction with retail lU1nb r yards; (5) hardwood flooring; (6) veneers; (7) plywood; (8) kiln dried hardwood dimen ion; (9) lath; (10) sawed boxes, shook and crate ; (11) plywood, veneer and wirebound package and container . ; and (12) in re pect of any Divi ion or ubdivi ion additional timber product a enumerated in chedule A. (b) "Per on" as used herein includ , without limitation, an in dividual, firm, partner hip, corporation, a ociation, tru t, tru t , or receiver subject to the juri diction of this ode. (c) '' Divi ions" and " ubdivision ' as u ed herein r fer to the e eral adn1ini trative unit of the lumb r and ti111b r pr duct indu tries which ar e tabli h d and are defined in chedul h reof. The Divi ion and ubclivi ions initially e tabli hed are a follo, , pro vided, however, that any Divi i n or ubdivi ion, as initially e tabIi hed herein , r as may be tabli hed hereafter, or any ub tantial group in uch Divi ion r ubdivi ion of the indu try a her in defined, n1ay b exempted from th pro Yi ion f thi od by the Pre~i-d<3nt r by the dmini trntor under the pr f rti le ..1. II of thi ode:

PAGE 27

Cypress Division. Hardwood Division: 23 Appalachian and Southern Hardwood Subdivision. Mahogany Subdivision. Philippine Mahogany Subdivision. Walnut Subdivision. Northern Hardwood Subdivision. North Central Hardwood Subdivision. Northeastern Hardwood Subdivision. Northern Hemlock Division. Northern Pine Division. Redwood Division. Northeastern Softwood Division. Southern Pine Division: Southern Rotary Cut Lumber Subdivision. West Coast Logging and Lmnber Division: Douglas Fir Plywood Subdivision. Douglas Fir Door Subdivision. Western Pine Division. Woodwork Division: Stock Manufacturers Subdivision. Wholesale Distributors Subdivision. Special Woodwork Subdivision. Wooden Package Division: Sawed Box, Shook, Crate, and Tray Subdivision. Plywood Package Subdivision. Standard Container Subdivision. Pacific Veneer Package Subdivision. Egg Case Subdivision. Wirebound Package Subdivision. Veneer Fruit and Vegetable Package Subdivision. Red Cedar Shingle Division: Stained Shingle Subdivision. Oak Flooring Division. Veneer Division. Maple Flooring Division. Hardwood Dimension Division. ART. III. Administration.-(a) The applicant 7 organizations shall, with the approval of the President, establish and empower a suitable agency named "Lumber Code Authority, Incorporated" hereinafter referred to as the Authority to administer this Code in conformity with the provisions of the National Industrial Recovery Act under the authority of the President. Said agency shall be a body incorporated not for profit. Provision shall be made for membership of representatives of the principal divisions of the industries, and pro vision shall also be made for three nonvoting members to be appointed by and to act as advisory representatives of the President. (b) The Authority shall issue and enforce such rules, regulations, and interpretations, and impose upon persons subject to the juris diction of this Code such restrictions as may be necessary to effectuate the purposes and enforce the provisions of this Code. (c) The Authority is authorized and instructed, with respect to the Rules of Fair Trade Practice set forth in Schedule B attached hereto, to devise and apply such further requirements or prohibitions, includ-

PAGE 28

24 1no-unfair trade pra tice , applicabl o the indu trie , which have b n p ificall c nd mned by th F -deral Tr d omm1 10n, as ma. onduce to the rderl p ration of th lumb r and timb r produ t indu trie , not in on i t nt with th pro i ion of the r ati nal In
PAGE 29

25 and timber products industries, the Authority shall make such reports as the Administrator may require, periodically, or as often as he may direct, and each person shall make such sworn or unsworn reports to the Authority, periodically, or as often as it may direct, on wages, hours of labor, conditions of en1ployment, number of en1ployees, production, shipments, sales, stocks, prices, and other matters pertinent to the purposes of this Code as the Authority may require, and each person subject to the jurisdiction of this Code and accepting the benefits of the activities of the Authority hereunder shall pay to the Authority his proportionate share of the amounts necessary to pay the cost of assembly, analysis, and publication of such reports and data, and of the maintenance of the said Authority and its activities. Said proportionate share shall be based upon value of sales or footage of production, as the Authority may prescribe for each Division or Subdivision. The Authority may conduct such investigations as are necessary to discharge its duties hereunder. ART. V. Labor Provisions.-(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. (b) No employee and no one seeking employment shall be required as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own choosing. (c) Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment, approved or prescribed by the President. (d) No individual under 18 years of age shall be employed, except that boys 16 years and over may be employed in the Wooden Package Division and in nonhazardous occupations during school vacations or if there are no wage earners of 18 years or over in their families. ART. VI. Hours of Labor.-(a) General Provisions and Exceptions: (1) No employee shall be permitted to work for two or more employ ers for a longer period in any week than specified herein for a single employer. (2) Exceptions to the standards in respect to maximum hours of labor specified herein are authorized as follows: A. Executive, supervisory, traveling sales force, and camp cooks. B. Regular employment in excess of such standards, for employees, such as watchmen, firemen, and repair crews, where required by the nature of their work, for not more than 10 percent of the employees in any operation, but time and a half shall be paid for weekly overtime. C. Temporary employment in case of emergency. D. Seasonal Operations.-Seasonal operations are defined as those which on account of elevation or other physical conditions or dependence upon climatic factors are ordinarily limited to a period of ten months or less of the calendar year. The administrative agency of a Division or Subdivision may authorize employment in a seasonal operation for a maximum number of hours not exceeding 48 hours in any week, with the exception of parts of an operation depending on climatic conditions, such as tream

PAGE 30

26 drivino-and l d hauling, in whi ha gr ater x b authorized; pr vid d, that th av rao-mploym nt in an en onal peration in an c l ndar ear hall not . ceed th tandard h dul E. 1anufactur r of wood n p kao-f r p ri habl fruit and ea-tabl ma b auth riz d b th dmini tr, tiY of th "'\ ood n uckao-e Di i ion to depart fro1n th t, ndard h dul of maximun1 hour appli able t aid nrnnufa tur r for a p riod not to d four , e l for an on crop, when nece ar to furni h pack ag for any p ri habl rop; provid d that the a rag e1nplo n1 nt of an individual in an, al ndar y a . r hall not x e d th tandard s h dule. (b) ubje t t the f reg ino-x ption , the n1aximmn hour of employment in the re pective Di i ion and ubdi ision hall be 40 hours per we k. RT. II. jyf-i n imum liVage .-(a ) en ral Provi ion : (1) The minimum compensation for workers employed on p1 cework or contract basi hall not be less than th minimun1 wag her under for the number of hour employed. (2) The existing amounts by which minimum wages in the higher paid classes, up to workers receiving $30.00 per week exceed minimum wage in the lowest paid classes, shall be.maintained. (3) Charges to employees for rent, board, medical attendance, and other services shall be fair. (b) Subject to the foregoing provisions, the minimun1 wage which shall be paid by persons under the jurisdiction of this Code shall not be less than 40 cents per hour, unless in any Di vision or Subdivision of the industries the prevailing hourly rate for the same class of employees on July 15, 1929, as determined by the Admini trator on statistical evidence, was less than 40 cents per hour, in which case the rate shall not be less than said pre ailing hourly rate so determined, plus fifteen percent if said hourly rate on July 1.5, 1929, wa le than 30 cents per hour, provided, however, that for wages per hour between 20 cents and 29 cents, inclusive, on July 15, 1929, with wages of less than 20 cents per hour on that date being con idered as 20 cents, the percentage of increase shall diminish one and one half percent for each cent that wages per hour exceeded 20 cent , in accordance with the following schedule: Wages per Increase under Wages per hour under hour, July proposed proposed 15, 1929 schedule schedule Genis Percent Cents 20 15 23 21 13}~ 24 22 12 24. 5 23 IO 25. 5 24 9 26 25 7 27 26 6 27. 5 27 4 2 28 3 29 29 l 29. 5 30 0 30

PAGE 31

27 (c) No rmmmum rate of wages for any Division or Subdivision shall be less than that proposed for such Division or Subdivision by the applicant industries in the Code filed July 10, 1933. (d) Minimum rates of wages so determined in the respective Divisions and Subdivisions shall be as follows: Division Cents per Ilour Division Cents per Hour Cypress ________ --Hardwood: Appalachian Hardwood ___ _ Southern Hardwood _________ _ Philippine Mahogany ________ _ Northern Hardwood: Mills & Factories ________ _ Logging ________ ____________ _ North Central Hardwood: Mills & Factories ________ _ Logging _____ ___________ _ North Eastern Hardwood: Mills & Factories ________ _ Logging _______ _ _ _______ _ Northern Hemlock: Mills & Factories ________ _ Logging ___________ _____ _ Northern Pine: Mills & Factories _ _______ _ Logging _____ ___________ _ Redwood ___________________ _ North Eastern Softwood: Mills & Factories ________ _ Logging ________________ _ Southern Pine _______________ _ Southern Rotary Cut ___ . ____ _ West Coast: Logging ________________ _ Lumber Manufacture ____ _ Factories _______________ _ Fir Door . . ________ _ _____ _ Fir Plywood _____ _______ _ Western Pine (Except Arizona, New Mexico and Colorado South of 38 north latitude): Logging ____________ ____ _ Mills ___________________ _ Factories _________ ______ _ Arizona, New Mexico, and Colorado (South of 38 North Latitude) _________________ _ Red Cedar Shingle ___________ _ Stained Shingle __________ _ 24 28. 5 24 45 30 27 32. 5 32. 5 30 27 30 27 33 .. 5 28. 5 35 30 27 24 23 42. 5 42. 5 40 40 40 42. 5 42. 5 40. 0 24 42. 5 40 Oak Flooring: Appalachian ____________ _ Southern ____ ___________ _ Maple Flooring ______________ _ Hardwood Dimension: Southern Hardwood Area __ Appalachian Hardwood Area _________________ _ Northern Hardwood Area __ Northeastern Hardwood Area _____________ : ___ _ North Central Hard wood Area ___________ ______ _ Mahogany Subdivision: 9 Zon e 1, New York City & Chicago ______________ _ Zone 2, Northern Cities __ _ Zone 3, Northern Rural_ __ Zone 4, Southern Cities ___ _ Zone 5, Southern RuraL __ _ Walnut Subdivision: 9 Zone 1, New York City & Chicago _______ _______ _ Zone 2, Northern Cities __ _ Zone 3, Northern Rural_ __ Zone 4, Southern Cities ___ _ Zone 5, Southern RuraL __ _ Veneer Division: 9 Zone 1, New York City & Chicago ______ ________ _ Zone 2, Northern Cities __ _ Zone 3, Northern RuraL __ Zone 4, Southern Cities ___ _ Zone 5, Southern Rural_ __ _ WOODWORK Division A-Stock Manufac-turers Subdivision: Zone 110 ________________ _ Zone 2 _________________ _ Zone 3 _________________ _ 9 Mahogany and Walnut Subdivision and Veneer. Division Zones are as follows: New York: Any establishment located within ten miles of the limits of the City of New York. Chicago: Any establishment located within ten miles of the limits of the City of Chicago. 29. 5 26 30 24 28. 5 30 30 32. 5 42. 5 35 30 30 25 42. 5 35 30 30 25 42. 5 35 30 30 25 25 30 32. 5 Cities: Communities over 75,000 population, including establishments within ten miles of the city limits. Rural: Communities of less than 75,000 population. South: Alabama, Arkansas, Florida, Georgia, Louisiana , Missi sippi, North Carolina, Oklahoma, South Carolina, Tennes see, Tex as, Virginia. North: Balance of the United States. 1 0 The Zones and territory under Woodwork are defined as follows: Zone #1 includes the states of Florida, Georgia, South Carolina, North Carolina, Virginia, Alabama, Tennessee, Mississippi, Louisiana, Arkansas, New Mexico, Arizona and Tex as (13 States). Zone #2 includes the states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connec ticut, New York, New Jersey, Delaware, District of Columbia, Maryland, West Virginia, Pennsylvania, Ohio, Kentucky, India na, Michigan, Illinois , Wiscon s in, Minnesota, Iowa, Missouri, Kansas, Oklahoma, Nebraska, South Dakota and North Dakota (26 states and District of Columbia). Zone #3 includes the states of Oregon, Washington, California, Nevada, Idaho, Utah, Colorado, Wyoming and Montana, but excepting western Oregon and Washington, which are included in the code of the West Coast Lumbermen's Assn. (9 states). Metropolitan New York includes the territory within a 30-mile radius of the City Hall on Manhattan Island in the City of New York. Chicago includes the territory within the bom , ds of Cook County, Illinois .

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28 WOODWORK-continu d WOODWORK-continue C nt s p r Hour Division Cent per llour 25 4 35 30 32. 5 Divi ion p cial V oodwork ubdivisi n: Zone L ________________ _ Zone 2: iro. . . Cit and hi ago __________ _ Ea t of Ohi , xcept . . City ________ _ Other territory ______ _ Zone 3 _________________ _ W ODEN PA KAGE 25 50 4 30 32. 5 Cents per IlourA. awed box hook, rat , and tray subdivi ion: a. Ea tern hook and Wood n Box group (Maine, a ., t., .. H., Conn., and R.I.)__________________________________ 30 b. New York, New Jer ey hook group (New York-M trop litan ar a) ____ __________________ _ ___________________________ 35 c. South a tern Box & hook group ( a., North & South Carolina, Ga., Florida, Ea tern T nn., & Ea tern Ala. ) ______________ 23 d. South rn Hardwood group (Louisiana, Ala., Eastern Texas, Arkansas, Southeastern corne r Mi souri, Southern end of Illinoi , W e tern Tennessee & Mi i sippi__________________ 23 e. Northw st Shook group (Wi ., Minn., .Dak., S.Dak., Winne-bago Co., Ill., Northern and Ea tern Iowa, orthern Peninsula of Mich.)_______________________ _________ _ _________ ____ 30 f . Inland Empire group (Montana, Idaho, Eastern Oregon, Ea tern and Central Wahington)_____ _ _______ _ ___________ 40 g. Pacific Wooden Box group (California, Oregon, Utah, Nevada, New Mexico, Arizona, and Colorado) : California, Oregon, Utah, Nevada and Colorado (North of 3 North Latitude)__________________ _ __________________ _ 40 New Mexico, Arizona & Colorado (Provisional) (South of 3 North Latitude) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 23 h. Pacific Northwest Wooden Box group (We tern Wa hingtou and Western Oregon and Alaska) _____________________ ____ 40 i. Northern Box and Shook group (New York, excluding Metropolitan N .Y., New Jersey, excluding Metropolitan .J., Delaware, Penna., Ohio, Ind., Southern Peninsula of Mich., Illinois except Winnebago Co. and extreme south at mouth of Ohio river, Missouri except Southeast corner, Kansas, Nebraska, Southern and Western Iowa) ___________________ 30 j. Southern Box and Shook group: (Maryland, W.Va., and Southern Pine and Softwood section of Tenn., ,, e tern Alabama, La., Arkansas, Texas, and Oklahoma)_ _______________ 23 B. Plywood Package Subdivision: (South of Delaware River, the Southern line of Pennsylvania, the Ohio River and the Southern line of Missouri, Kan a , Colorado, and the Colorado River)___________________________________ 23 orth of above line______________________ ____ ________________ 30 C . Southeastern Veneer Container ubdivision: (Florida, Georgia, Ala-bama) ____________________ _____________ ____ ________________ _ 23 D. Pacific Veneer Container Subdivision: (California, Oregon, Wa hing-ton) ________________________________________________________ 40 E. Egg Ca e ubdivi ion: (Florida, Georgia, So. Carolina, No. Carolina, Virginia, Alabama, Tennes ee, Mis issippi, Louisiana, Texas, Mar land, W. Virginia, Kentucky, Oklahoma, Arkan a , Southea tern o., and Ohio River point ) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 23 All other t rritory __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ 30

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29 WOODEN PACKAGE-continued DIVISION Cents per Hour F. Wirebound Box Subdivision: (Florida, Georgia, South Carolina, North Carolina, Virginia, Alabama, Tenn., Miss., La., New Mexico, Ariz., Texas, Maryland, W.Va., Ky., Okla., Arkansas, and Ohio River points)____ ______ 23 All other territory ______________________ ~____________________ 30 G. Veneer Fruit and Vegetable Package Subdivision: Southern Group: (North Carolina, South Carolina, Kentucky, Tennessee, Mississippi, Louisiana, Alabama, Texas, Arkansas, Georgia, Florida, Virginia, and nine counties Eastern Shore of Maryland and Delaware)__________________________________ 23 Northern Group: New York, New Jersey, Midwest, and Michigan groups ___________________________________________________ 30 In the Wooden Package Division minimum wage rates below those shown in the schedule shall be permitted in the case of boys and girls less than 20 vears of age, provided that not 1nore than 20 percerit of the total number of employees of any one plant shall be so classified; and provided further that the differential shall not exceed 3 cents if the rate after subtracting the differential is 27 cents or less, but in no case shall the differential exceed 5 cents. ART. VIII. Control of Pro duction.-(a) To effect uate the declared purposes of this Code in respect o.f maintaining a reasonable balance between the production and the consumption of lumber and ti1nber products and to assure adequate supplies thereof, the Authority shall determine, and from time to time revise, not less frequently than each three months, estimates of expected consumption, including exports, of lumber and timber products of each Division and Sub,. division; and based thereon it is empowered to establish, and from time to time revise , production quotas for any Division or Subdivision of the lumber and timber products industries. Allotments within each Division and Subdivision, for the persons therein, shall be made,. subject to the supervision of the Authority, by the agencies designated by it. Said quotas as between such Divisions or Subdivisions shall be in proportion to the shipments of the products of each during a representative recent past period to be dete_rmined by the Authority; but the Authority may modify said proportions if warranted by evidence. In case of Divisions or Subdivisions, the raw material of which is imported, the quotas and allotments may be in terms of imports, so far as may be consistent with the provisions of Section 7 (a) of the National Industrial Recovery Act. (b) Each person in operation shall be entitled to an allotment. Each person known to any Division or Subdivision agency to be in operation shall be registered by such agency immediately and shall be assigned an allotment. The agency shall also immediately give public notice reasonably adapted to reach all persons operating or desiring to operate, stating the date on which the allotments will be determined; and any person desiring to operate who shall give the agency written notice of such desire ten days before the allotment date, supported . by acceptable evidence of ability to operate, shall be registered by the agency and assigned an allotment. Any person so registered shall be deemed an "eligible person" for the purposes of this Article. (c) The allotment for each eligible person shall be determined from time to time for a specified period not exceeding three (3)

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30 m nth and, e . c pt a ma b p rmi t d und 'r th prov1s10ns of section ( d ) h r f, hall b a follo\v : (1) That proportion of a sp cifi d percentaa , d t rmined a pro id d in tion (d ) and ( ) of thi Ar icl of th Divi ion or ubdi i ion qu ta which hi gr atest av raa hourl produ tion in the hour operated durina any three calendar ar sin D cemb r 31, 19 • .A, i of th aaaregat of such hourly production of all ligibl per son within the Di i ion or ubdi i ion. (2) That proportion of a sp citied per entaae, determined a pro vid d in section (d) and (e) of this Article, of th Divi ion or ubdi vision quota which hi great~st average y arl y production for any tlu e calendar years since .December 31, 1924 , is of the aggregate of such yearl y production of all eligible persons within the Division or ubdivi ion. (3) That proportion of a specified percentage, determined as provided in sections ( d ) an d (e) of this Article, of the Divis ion or ubdi vision quota which the greatest average number of his employees during any three calendar years since December 31, 1924, is of the aggregate of such number of employees of all eligible persons within the Division or Subdivision. (4) That proportion of not to exceed ten (10) percent of the Divi-sion or Subdivision quota which the amount of taxes paid by him, except Federal taxes, taxes on ore, coal, petroleum, ships, retail yards, and timber not set apart for the operation, during the next preceding calendar year is of the total amount of such taxes paid by all eligible persons within the Division or Subdivision. (5) That proportion of not to exceed fifteen (15) percent. of the Division or Subdivision quota which the quantity of reserve standing timber allocated to his operations within said Division or Subdivi -sion, and at the time the allotment is made, owned by him in fee or under contract is of the total quantity of such reserve standing timber owned in fee or under contract by all eligible persons within the Division or Subdivision. (d) (1) Exceptions to or changes in any allotment thus established -shall be made only for special, accidental, or extraordinary circum . stances, or, in any Division or Subdivision, for other factors peculiar to a limited group of operations. Exception may be made only on application to the designated Division or Subdivision agency by an , eligible person who must submit evidence in support of his applica tion, and the exception may be granted only upon a published finding .and statement of reasons therefor. (2) A person conducting seasonal operations as defined in Article VI (a) (2) (D) hereof shall be entitled, on application to his Division or Subdivision agency, to produce during his period of operation not • only amounts allotted to him during his period of operation but also amounts allotted to him under section (c) hereof since the termination of his previous operating period. (3) In the case of any person (a) who produced during less than three calendar years since December 31, 1924, and before December 31, 1930, or (b) who is entitled to an allotment for operation of new, . additional, or restored facilities, which were not in operation for such three calendar years, or (c) for whom for any other reason such three calendar years are not reasonably representative of his present circum . stances , his average hourly production, his average yearly production,

PAGE 35

31 and his average number of employees shall be determined by the Division or Subdivision agency on an equivalent basis by comparison with substantially equal facilities already established and in like regions or conditions. (4) On application of a Division or Subdivision, the Authority may authorize the allotment of production therein on any one or more of the bases provided in subsections (1), (2), and (3) of section '(c) hereof in such relative proportions as the Authority may approve; -and including or not the bases, or either of them, provided in subsections (4) and (5) of said section (c). (e) In the absence of an approved application from any Division or Subdivision for the assignment of allotments under the provisions of subsection (4) of section (d) hereof, the Authority may direct that allotnrnnts within said Division or Subdivision be assigned in accord ance with the provisions of section (c) in the following relative proportions: Subsection (1), hourly production, 40 percent; Subsection (2), yearly production, 30 percent; Subsection (3), number of employees, 15 percent; Subsection (4), taxes paid, 5 percent; Subsection (5), standing timber, 10 percent; unless the Division or Subdivision shall elect to accept the average relative proportions of the Divisions or Subdivisions whose allotments have been theretofore approved. (f) The basis for determination of Division and Subdivision quotas -and of individual allotments and any revisions thereof, all quotas, all allotments, and all appeals therefrom and all decisions on appeals shall be published. , (g) Allotments from two or more Divisions or Subdivisions to the same person shall be separate and distinct and shall not be interchangeable. Allotments shall not be cumulative except as authorized in specific cases under section (d) (I) of this Article, or in cases of seasonal operations of a Division or Subdivision under section (d) (2) of this Article, and shall not be transferable except as between operations under the same ownership within the same Division or Subdivision. (h) Whenever in the case of any eligible person it shall be necessary, in order to accept and execute orders for export, to have an addition to his regular allotment, provision for such necessary excess shall be made by the Division or Subdivision agency, provided that any excess above his allotment shall be deducted from his subsequent allotment or allotments. (i) The Authority may modify, or cause to be modified, production quotas and allotments determined hereunder, and the bases therefor, in such manner and to such extent as may be necessary to effectuate the provisions of the Code in respect of the conservation and sustained production of forest resources. Such modification shall not be made effective prior to the next succeeding allotment date. (j) The basis of allotments as provided in sections (c), (d), and (e) hereo . f is tentative and is subject to revision. When in the judgment of the Authority revision of the bases of allotments is desirable, whether by changing the proportions of the factors in determining allotments enumerated in Section (c), subsections 1, 2, 3, 4, and 5, of this Article, in accordance with the procedure established in sections

PAGE 36

32 r b the additi n f th r fa t r , on id ration hall b ()'iv n t th inrlu ' ion f pra ti abl and quitabl m a ure s ubj t t th appronll of th Pr ident for in r a ing all tm nt f p r n wh o t ar b l \\. the w io-ht
PAGE 37

33 8. Taxes, including taxes on timber tributary to and allocated to an existing mill or logging operation, not to exceed a twelve-year :Supply therefor. 9. Interest paid on indebtedness representing plant, facilities, and working capital necessary for mills actually operating or capable of ,operating, including mills , equipment, logging facilities, docks, inventory, accounts receivable , and timber tributary to and a llocated to any existing mill or logging operation, not to exceed a twelve-year . upply therefor. 10. Discounts, claims paid, and losses on trade accounts. 11. Depreciation: On straight-line method, and based on the fair value or the cost , whichever is lower , on operating mills and on mill and logging equipment, including mills and equipment capable of operation, plus amortiza.tion of investments in logging railroads ,
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34 b 1 w a cepted stA.ndtud I quality a pr crib cl by th authority, uch n~ th pr du t f 1n mall m.i]] . ( ) _ o p r on hall ell r off r for al e lm 1ber or timber produ t upon which rnininuun pri hav be n e ablj h d at pri e I . than th o e tablLhcd. _ o p r .. n hall 11 or off r f r al lmnher or timber product to \\ h le ale or oth r di tributor who hav'.} b en found b T tlte _ dmini trator t haYc vi lat d any of th provi ion of the Rul ., of Fair Trade 1 racti e in c l'J orat
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35 said measures require the cooperation of federal, state, or other public agencies, said measures may to that extent be made contingent upon such cooperation of public agencies. ART. XI. Special Agreements.-Voluntary agreements, or proposed voluntary agreements, between and among persons engaged in the logging of timber or the production and distribution of lumber and timber products, or between and among organizations or groups in the lumber and timber products industries, or in which such persons, organizations, or groups propose to participate, proposed to be submitted to the President for approval under Sec. 4 (a) of the National Industrial Recovery Act, shall not be in conflict with the provisions of this Code or with any approved rule issued thereunder. Such agreements or proposed agreements shall be submitted to the Authority and if not disapproved by it within thirty days as being in conflict with the provisions of this Code, they may thereafter be submitted to the President for approval; but no person engaged in theproduction and distribution of lumber and timber products shall participate in any such agteement which has been determined by theAuthority to be in conflict with the provisions of this Code. ART. XII. Cancellation or Modiji,cation.-(a) The President may from time to time cancel or modify any order, approval, license, rule,, or regulation issued under Title !""of the National Industrial Recovery Act in respect of this Code. (b) Any decision, rule, regulation, order, or finding made or course of action followed pursuant to the provisions of this Code, may becancelled or modified by the Administrator whenever he shall deter mine such action necessary to effectuate the provisions of Title I of the National Industrial Recovery Act. ART. XIII. Monopolies.-(a) This Code shall not be construed, in terpreted, or applied so as to promote or permit n1onopolies or mo nopolistic practices, and shall not be availed of for that purpose. (b) The provisions of this Code shall not be so interpreted or administered as to eliminate or to oppress or to discriminate against small enterprises. ART. XIV. Division and Subdivision Code Provisions.-Code pro visions affecting or pertaining to Divisions and Subdivisions of the lumber and timber products industries are contained in Cchedule "A" attached hereto, which is specifically made a part of this Code, in so far as they relate to description of the respective Divisions and Subdivisions, identification of persons and products subject to their jurisdiction, and designation of administrative agencies. Additional Code provisions affecting or pertaining to Divisions and Subdivisions may be filed with the Authority and if not inconsistent with theprovisions of this Code may be recommended by it to the President. When approved by the President such provisions shall have the same force and effect as any other provisions of this Code. ART. XV. Violations.-Violation by any person of any provision of this Code or of any rule or regulation issued thereunder and approved by the President, or of any agreement entered into by him with the Authority so observe and conform to this Code and said rules and regulations or by any importer of any agreement entered into by him with the said Authority for the restriction of importation of lumber and timber products, or any false statement or report made to the President or to the Authority or to the governing body or agency of

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36 an de ignated Di i ion r ubdi i i n, after de i i n by th Adminitrator th reon pur u nt to rti 1 ..1. II of thi od or otherwi e, hall con titut an unfair n1eth d of 01upetition, and th off nder shall be ubj ct t the p nalti impo d by th ational Industrial Re ov ry ct. RT. X I. Rule of Fair Trade Practice.-(a) Th Rules of Fair Trad Pra ti e for the Lumber and Timber Product Indu tri s, a t forth in h dul "B ' atta h d h r to, ar pecifically mad a part of thi od . Th uthority hall make such additions to or exception from aid Rul , a th agen . i of the r p ctive Divi ions or ubdivi ion ma reque t, appli able in the resp ctive Divisions and ubdivi ion , provid d th Authority finds aid additions and exceptions are not unfair to p r on in oth r Divi ion or Subdivisions or their employees, or to con umer , and not in on i tent with the other provision of thi Code, or with the ational Industrial Recovery Act. pon appro al of such additions and ex eptions by the Administrator aid rules shall take precedence in the re pective Divi sions and ubdivisions in respect of the ubject matter of said addi tion and exceptions, and shall be effective concurrently with the Rules so added or excepted to. ( b ) The appli ant industries undertake to adopt,apply,and enfor e branding or marking or marking of lumber and timber produ t . Subject to section (c) hereof, all timbers, all seasoned lumber except factory and shop lumber, all flooring and all shingles and lath shipped to markets within the United States, not including export shipments, shall be branded by the manufacturer or producer thereof or by his agent in suc h manner as will indicate ( 1) its species, except as other wise determin d by the Authority; (2) its grade; (3) whether it i of standard or substandard dimensions; (4) whether it is seasoned or unseasoned. All shipments except export shipments, by rail or wate r of timber, ] umber, floor i ng, shingles, and 1ath shall be accom panied by a certificata of the originating shipper showing the quantity and grade thereof. (c) The Authority shall submit to the President, not later than January 1, 1934, provisions, including proposed rules and regula tions, necessary to effectuate the requirements of this Article and to establish other desirable certification of products, to prevent evasion and to secure equitable application thereof; and the said provisions when approved shall be a part of thi Code, or of the Rule of Fair Trade Practic , and shall be effective not more than thirtv (30) days thereafter. ART. XVII. Appeals.-(a) Any interested party shall have the right of complaint to the designated agency of any Division or Sub division and of prompt hearing and decision thereon in respect of any decision, rule, r eg u _ ation, order, or finding made by such agency. Such complaint must be filed in writing with the said agen y within a reasonable period of time after said deci ion, rule, regulation, order, or finding i is ued. The decision of aid agen y may be app aled by any interested party to the Authority. (b) Any intere ted party hall have the right of complaint to the Authoritv and of prompt hearing and d i ion th reon, under u h rule and regulation a it. hall pr crib , in re p ct of any d cis i on, rule, regulation, order, r finding made by the Authority.

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87 (c) Any interested party shall have the right of appeal to the Administrator of the National Industrial Recovery Act, under such rules and regulations as he shall prescribe, in respect of any decision, rule regulation, order or finding made by the Authority. ART. XVIII. Jurisdiction.-This Code, when approved by the President, shall apply to all persons engaged in the lumber and timber products industries as defined herein. ART. XIX. Effective Date and Termination.-(a) The provis ions of this Code in respect of maximun1 hours and minimum wages shall be in effect beginning three days after its approval by the President; and other provisions of the Code, unless specifically provjded otherwise, ten days after approval by the President; Schedule B s hall be in effect at such date as may be specified by the Authority; but not later than Noven1ber 1, 1933. (b) This Code shall terminate on ,June 16, 1935, or on such earlier date as the National Industrial Recovery Act may cea . se to be effectiYe. (c) This Code shall continue in effect for a period of si'.: (6) months after the date of approval thereof by the President in order to afford to the President an opportunity to determine upon the recommendations of his representatives on the Authority, which recommendations shall be n1ade periodically or as o_ften as the said representatives deem necessary or advisable but in any event not later than six months after the date of approval of this Code by the President, whether its provisions will effectuate the purposes of Title I of the National Industrial Recovery Act, subject, however, to amendment at any time, as here inbefore provided, and subject also to the reserved power of the President to cancel or modify his approval thereof. This Code shall continue in effect after the expiration of said period of six (6) months in the absence of the exercise of such reserved right on the part of the President. SCHEDULE A DIVISION AND SUBDIVISION-CODE PROVISIONS (Parenthetical references in these Provisions refer to Articles of the Code) 1. Cypress Di vision. 2. Hardwood Division: 3. Appalachian and Southern Hardwood Subdivision. 4. Mahogany Subdivision. 5. Philippine Mahogany Subdivision. 6. Walnut Subdivision. 7. Northern Hardwood Subdivision. 8. North Central Hardwood Subdivision. 9. Northeastern Hardwood Subdivision. 10. Northern Hemlock Division. 11. Northern Pine Division. 12. Redwood Division. 13. Northeastern Softwood Division. 14. Southern Pine Division: 15. Southern Rotary Cut Lumber Subdivision. 16. West Coast Logging and Lumber Divis ion: 17. Douglas Fir Plywood Subdivision. 18. Douglas Fir Door Subdivision. 19. Western Pine Division. 20. Woodwork Division: 21. Stock Manufacturer Subdivision. 22. Wholesale Distributors Subdivi ion. 23. Special Woodwork Subdivi ion.

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3 24. 25. ubdivi ion. 26. 27 . 2 . 29. 30. 30a. ubdivi ion. 31. Red 32. 33. 34. 35 . 36. 1. GrPRE, D1v1 IO, Div i io n ( rt. II c ) .-The Cypress Di vi ion con i t of producers and man ufactur r o f lumber and timber product of Tidewater R d Cypre in th tat of Florida, G orgia, Loui iana, and outh Carolina, but doe not includ whit and yellow c ypr or the mall amount of red cypre produced by hardwood mill . Product s (Art. II a ) .-Lumb r and Timber product under the juri diction of thi DiYi ion includ all Tidewater Red Cypres logs, pole , and piling; sawn lumber; planing mill product , except tho e of planing mills operated in conjunction with retail lumber yards; shingles, flooring, veneers; plywood; lath; boxes and crates. Administrative Agency (Art. III) .-The Southern Cypress Manufacturers' As ociation i de ignated as the agency of the Authority for the administration of the Code in thi Di ision. Said As ociation, through its Board of Director , is authorized to make rules and regulations necessary to administer the Code in thi Division, and shall designate and authorize such agencies as may be required for this purpose. 2. HARDWOOD DIVISION D i v i sion (Art. II c ).-( a) The Hardwood Division consists of producers, manufacturers, importers, and distributors of hardwood lumber and timber product , in the following Subdivisions: Walnut Subdivi ion. Southern and Appalachian Hardwood Subdivision. North Central Hardwood Subdivision. Mahogany Subdivision. Northeastern Hardwood Subdivision orthern Hardwood Subdivision. Philippine Mahogany Subdivi ion. (b ) Jurisdiction shall also extend to wholesaler , exporters, and distributors of such hardwood product to the extent provided for in the Code, in this or any Subdivision code provisions, and in the rules of fair trade practice appended in Schedule B. ( c ) The territory and person subject to the jurisdiction of the seven ubdivi ions shall be defined by the Hard" ood Coordinating Committee hereinafter de ignat d. Other SubdiYi ions may be establi hed upon application to the Authority through the Hardwood Coordinating Committee. Products ( rt. II a ) .-Hardwood logs , awn tic , timber and lumb r, lath, dimension cut from the log, and product of 1 laning mill operat din conjunction with awmill ; and in respect of any ubdivi ion uch additional hardwood timber product a it may enumerate. Administrat i v e Age nc ie s (Art. III) .-(a) The dmini trative gencie in the re pectiY e ubdiv i ion hall be a follow : W alnu ubdivi ion , American Walnut Manufacturer oci,1tion. o u t h ern and Appalachian Hardwood ubdhi ion, Hard,Yood Ianufacture r In titute. N orth C entral Hardwo d oc i ation. ubdi i ion , Indiana Hardnood Lumb rm n M a h g a n y ubdivi i n Mahogany ... orth a t rn Hardn d ubdivi ion , t u r iation . orthea tern Lumber Manufac-

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39 Northern Hardwood Subdivision, Northern Hemlock & Hardwood Manufacturers Association. Philippine Mahogany Subdivision, Philippine Mahogany Manufacturers Import Association. (b) The Hardwood Coordinating Committee, established by the above administrative agencies in conjunction with the National-American Wholesale Lumber Association, the National Hardwood Lumber Association, and the National Lumber Exporters Association, is designated as the agency of the Authority for the administration of the Code in this Division, through and by means of this administrative agency herein designated for each Subdivision. (c) Said Committee shall issue and enforce such rules, regulations, and interpretations, including trade practices, impose upon persons subject to the jurisdiction of this Division such restrictions and designate such agents and delegate such authority to them as may be deemed necessary; but shall reserve the power and duty to enforce the provisions of the Code in this Division. The Committee may delegate any of its authoirty to its representatives, selected from its membership, or the membership of the Authority, who are hereby empowered to act for the Division conclusively in respect of all matters coming before the Authority. Such representatives shall constitute the Hardwood Executive Committee. All matters of interest to the Division or any Subdivision requiring action by the Authority shall fin,t be presented to the Hardwood Executive Committee. (d) Each Subdivision shall, under authority of the Hardwood Coordinating Committee, select its own administrative agencies. Each Subdivision shall be independent and self-governing in respect of all conditions and problems relating to the said Subdivision exclusively. Proposals in respect of matters affecting more than one Subdivision may be initiated by any Subdivision and shall be submitted to the Hardwood Coordinating Committee. 3. APPALACHIAN AND SOUTHERN HARDWOOD SUBDIVISION Subdivision (Art. Ile): This Subdivision consists of producers and manufacturers of hardwood lumber and timber products, but including Appalachian hemlock, white pine and spruce, also white and yellow cypress and Southern red cedar, within the following states: Texas, Louisiana, Mississippi, Alabama, Arkansas, Missouri, Oklahoma, Florida, Georgia, Tennessee, Kentucky, South Carolina, North Carolina, Virginia, West Virginia, and Maryland. The Appalachian Territory is defined as that part of the Appalachian and Southern Hardwood Subdivision within the lines defined as follows: Starting at Cincinnati, Ohio, following main line Louisville and Nashville Railroad through Louisville, Kentucky, and Nashville, Tennessee, to Tennessee-Alabama state line, making the western boundary of the Appalachian territory; thence east on Tennessee-Alabama state line to Georgia state line; thence south on AlabamaGeorgia state line to thirty-fourth parallel; thence east on thirty-fourth parallel in Georgia to main line Southern Railway, Atlanta to Washington route; and thence northeast following Southern Railway from this point through South Carolina, North Carolina, Virginia, and Maryland to Pennsylvania state line. All points on boundary lines are in southern territory. Products (Art. Ila) : All lumber and timber products enumerated except: poles and piling; products of planing mills not operated in conjunction with sawmills; hardwood flooring; veneers; plywood. Administrative Agency (Art III): The Hardwood Manufacturers Institute is designated as the agency of the Authority and the Hardwood Coordinating Committee for the administration of the Code in this Subdivision. Said Institute, through its Board of Directors, is authorized to make rules and regulations necessary to administer the Code in this Subdivision and to designate and authorize such further agencies as may be required for this purpose. 4. MAHOGANY SUBDIVISION Subdivision (Art. II c): The Mahogany Subdivision includes all manufacturers importers, and distributors, including principals, brokers and agents, of mahogany and foreign woods as hereinafter defined. Species and Products (Art. II a): (a) All species of Mahogany (except woods from the Philippine Islands sold under the trade name "Philippine Mahogany"), Spanish Cedar, Teak, Ebony, Rosewood, Satinwood, Box Wood, Cocabola, Lignum, Vitaw, wood from Australia sold under the trade name" Oriental Wood", European Brown and Pollard Oak, all other tropical hardwoods (except from the

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40 th r f r i n hardwood cu tomarilv d cribed as rdiuarily Eur pean and anacltan mme rcial ~ . PHILIPPI E M A HOG A Y -BDIVISIO ubdivi s i on ( rt. II c ) . -Th Philippin M ahogany ubdi i ion in the nited tate con i t of manufacturer of lumbe r and timbe r product of Philippine fahogany a n d other Philippine hard,rnod , p e r on e xclu iv ly repre enting in th nit d tates manufacturers of uch lumbe r and timber product in the Philippine I l ands and all importer of such lumbe r and timber product . P r o d ucts (Art. II a ) .-Log , lumb r, and timber product of all pecie of hardw d produce d in the Philippine I land . Adrninist r ative Age ncy (Art. III) .-The Philippine Mahogany Manufacturers Import A ociation is de ignated as the agency of the Authority and the Hardwood Coordinating Committee for the admini tration of the Code in this ubdivi ion. Said As sociation, through its Executive Committee, is authorized to make rules and regulations necessary to administer the Code in this ubdivision. 6. WALNUT SUBDIVISIO Subdivision (Art. II c ) .-The Walnut Subdivi ion consist of producers, manufactur r , and importer of walnut throughout the nited State . P r oducts (Art. II a ) .-All walnut lumber, logs, burls, crotches, and awmill products regardless of the variety of walnut, except walnut veneers. Administrative Agency (Art. III) .-The American Walnut Manufacturers A o ciation is designated as the agency of the Authority and the Hardwood Coordinating Committee for the administration of the Code in this Subdivi ion. Said A sociation, through its Executive Committee, is authorized to make rules and regulations necessary to administer the Code in this Subdivision, and shall designate and authorize such agencies as may be required for this purpose. 7. NORTHERN HARDWOOD SUBDIVISION Subdivision (Art. IIc).-The Northern Hardwood Subdivision consist of producers and manufacturers of lumber and timber products of birch, maple, ash, elm, basswood, oak, beech, and other indigenous and related species in Michigan, Wi con s in, and Minnesota. Products (Art. II a ) .-All lumber and timber products enumerated exc pt poles and piling, woodwork, hardwood flooring, veneers, plywood, and kiln-dried hardwood dimension. Adm i n i s trativ e Age ncy (Art. III).-The Northern Hemlock and Hardwood Manufacturers Association is designated as the agency of the Authority and of the Hard'1-ood Coordinating Committee for the administration of the Code in thi Subdiv i s io n . Sai d A s o ciation, through its Board of Director , i authorized to m a k e rule and r egulations n e c e s ary to administer the C o d e in this ubdivi i o n a n d hall de i gnate and authorize such agencie s a ma be required for thi purpo e . 8. NORTH C ENTRA L HARDWOOD UBDIVI ION Divisio n ( Art. II c ) . -The orth Centra l Hardwood ubdivis ion con i t of pro d uce r a n d manufactur r s of hardwood lumber and timbe r products in the tate o f Ohio, Indiana, and Illinoi . P roduc t s (A r t . II a ) . All lumbe r and timb r products enumerated except p o l e ' and p il ing, p r oducL o f planing mill s n o t operate d in conjunction with sawmill , hardwood flooring, ven ee r , a n d ply wood.

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41 Admini.lralil'e Agency (Art. III).--Tl:e Xorth Central ubdivi ion A ociation is de ignated as the agency of the Authority and of the Hardwood Coordinating Committee for the administration of the Code in this ubdivision. aid A ociation, through its Admini tration Committee, is authorized to make rules and regulations necessary to admini ter the Code in this Subdivision, and shall de ignate and authorize such further agencies as may be required for thi purpose. 9. ORTHEASTERN HARDWOOD SUBDIVISION ubdivision (Art. II c) .-The ortheastern Hardwood Subdivision consists of the producer and manufacturers of hardwood lumber and timber products of birch, beech, maple, ash, elm, bas wood, oak, and related species in the ew England States, ew York, Pennsylvania, and New Jersey. Prod ucts (Art. II a) .-All lumber and timber products enumerated except: poles and piling, planing-mill products, woodwork, hardwood flooring, veneers, plywood, and kiln-dried hardwood dimension. Administrative Agency (Art. III) .-The ortheastern Lumber Manufacturers Association i s designated as the agency of the Authority and of the Hardwood Coordinating Committee for the Administration of the Code in this Subdivision. Said A sociation, through it Board of Directors, is authorized to make rules and regulation necessary to administer the code in thi Subdivision and shall de ignate and authorize uch agencies as may be required for this purpose. 10. NORTHERN HEMLOCK DIVISION Division (Art. II c).-The Northern Hemlock Division consists of the producers and manufacturers of lumber and timber products of Northern hemlock, tamarack, balsam fir, Norway pine, and white pine in the States of Michigan, Wisconsin, and Minnesota (excepting the producers and manufacturers of orthern pine lumber in Minnesota). Products (Art. II a) .-All lumber and timber products enumerated except: poles and piling, woodwork, hardwood flooring, veneers, plywood, and kiln-dried hardwood dimension. Administrative Agency (Art. III) .-The Northern Hemlock and Hardwood Manufacturers Association is designated as the agency of the Authority for the administration of the Code in this Division. Said Association, through 'its Board of .Directors, is authorized to make rules and regulations n eces ary to administer the Code in this Division, and shall designate and authorize such agencies as may be required for this purpose. 11. NORTHERN PI E DIVISION Division (Art. II c).-The Northern Pine Division consist of the producers and manufacturers of lumber and timber products of white pine, Norway pine, and miscellaneous soft"ood and hard"\\'Ood lumber in the State of Minnesota. Products (Art. II a) .-All lumber and timber products enumerated except: millwork, hardwood flooring, veneers, plywood, and kiln-dried hardwood dimension. Administrative Agency (Art. II) .-The Northern Pine Manufacturers' A sociation is designated as the agency of the Authority for the admini tration of the Code in this Division. Said Association, through its Board of Directors, is authorized to make rules and regulations necessary to administer the Code thi in Division, and shall appoint such agencies as may be necessary for this purpose. 12. REDWOOD DIVISIO. Division (Art. II c).-The Redwood Division consists of producers and manufacturers of lumber and timber products of redwood and intermino-ed species in the counties of Del orte, Humboldt, _ 'fendocino, Sonoma, Marin, San Mateo, Santa Cruz, and Monterey, in the State of California. Products (Art. II a) .-All lumber and timber products, split, sawn, or refined by manufacture, except hardwood flooring, veneers, plywood, and kiln-dried hardwood dimension. Administrative agency (Art. III) .-The California Redwood Association i de -ignated as the agency of the Authority for the administration of the Code in this Divi ion. Said Association, through its Board of Directors, is anthorize
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42 13. ORTHEA TERN OFTW D DI I. IO"l' Divi ion ( r t . II c).-The rth a tern ftwood Divi ion on i ts of producers a n d manufactur r of lumber and timb r product of h mlock, pruc , whit pine, nnd oth r ftwood in the c England tat , _ w ork, P nn ylvania, cw J r y and We t irgm1a. Product (. rt. II a).-11 lumb r and timb r pr duct numerat d e-..;:c pt pol and piling, planino--mill product , woodw rk, hardwood flooring, v neer , plyw d, and kiln-dri d hardw od dimen ion. Adminiscrative Agency (Ar . III).-The orth a tern Lumb r Manufactur r A ciation i de ignated as the agency of the uthority for the admini tration of the od in thi Divi ion. Saicl As ociation through it Board of Dir ctor , i authorized to make rules and regulations nece ary to a
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17. DOUGLAS FIR PLYWOOD SUBDIVISION Subdivision (Art. II c) .-The Douglas Fir Plywood Subdivision consists of manufactures of Douglas Fir Veneers and plywood in the States of Oregon and Washington. Products (Art. II a) .-The following products only shall be under the jurisdiction of this Subdivision, viz: veneers; plywood. Administrative agencies (Art. III) .-The Douglas Fir Plywood Manufacturers Association, a Branch of the West Coast Lumbermen's Association, is designated as the agency of the Authority for the administration of the Code in this Subdivision, under the supervision of the West Coast Lumbermen's Association as to maximum hours of larbor, minimum rates of pay, the payment of Code fees and submission of Code reports, and any questions of correlation and adjustment with other industries included in the West Coast Logging and Lumber Division. Subject to such supervision, the said Association, through its Executive Committee, is authorized to make rules and regulations necessary to administer the Code in this Subdivision and shall designate and authorize such agencies as may be required for this purpose. 18. DOUGLAS FIR DOOR SUBDIVISION Subdivision (Art. II c) .-The Douglas Fir Door Subdivision consists of manufactures of Douglas Fir stock doors i . n the States of Oregon and Washington. Products (Art. II a) .-The following products only shall be under the jurisdiction of this Subdivision, viz: Douglas Fir stock doors. Administr. ative Agencies (Art. III) .-The Douglas Fir Door Manufacturers Association, a branch of the West Coast Lumbermen's Association, is designated as the agency of the Authority for the administration of the Code in this Subdivision, under the supervision of the West Coast Lumbermen's Association as to maximum hours of labor, minimum rates of pay, the payment of Code fees and submission of Code Reports, and any questions of correlation and adjustment with other industries included in the West Coast Logging and Lumber Industry Division. Subject to such supervision, the said Association, through its Executive Committee, is authorized to make rules and regulations necessary to administer the Code in this Subdivision and shall designate and authorize such agencies as may be required for this purpose. 19. WESTERN PINE DIVISION Division (Art. II c).-The Western Pine Division consists of producers and manufacturers of lumber and timber products of western pines and intermingled species in the States of Arizona, California (excepting certain counties which are included in the Redwood Division), Colorado, Idaho, Montana, Oregon (excepting certain counties which are included in the West Coast Logging and Lumber Di vision), New Mexico, South Dakota, Utah, Washington ( excepting certain counties which are included in the West Coast Logging and Lumber Division), and Wyo ming. Products (Art. II a) .-All lumber and timber products enumerated except poles and piling, products of planing mills not operated in conjunction with sawmills, shingles, woodwork (mill work), hardwood flooring, veneers, plywood, and kiln-dried hardwood dimension. Administrative Agency (Art. III) .-The Western Pine Association is designated as the agency of the Authority for the administration of the Code in this Division. Said Association, through its Board of Directors, is authorized to make rules and regulations necessary to administer the Code in this Division, and shall designate and authorize such agencies as may be required for this purpose. 20. WOODWORK DIVISION Division (Art. II c) .-(a) The Woodwork Division consists of manufacturers whose predominant products are doors, windows, screens, frames, and interior trim, which products are similar to and in competition with the products of planing mills and sash and door and millwork factories operated in conjunction with sawmills; manufacturers whose predominant products are furniture, fixtures, refrigerators, automobile bodies, or ecclesiastical furniture or whose predominant business is the manufacturing, finishing, and installing in the building of cabinetwork are not included.

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44 (I) Thr \ nodw rk Di\'i i n i. di\'idcrl f r juri clicii nal and aclmi11i:trative purpos -. into 'ubdi\'i ion a f 11 w : . •t ck :i\1anufactur r ubdivision. \ h I al r Di tributor Subdi i ion. peciaJ \ o d, rk ubdivi ion. (c) Th t rritory and per on sul j ct t th did i n hall b defined by th auencv f th ther ubdivi ions mav b establi hed bv th approYal of the uth r'ity . j urisdi tion of th ev ral ub• Dhi i n h reinafter de ignat d . u ncy of th Divi ion with the (d) Each f the ubdivision hereinabove named and any ubdivi. ion hereafter e tabli hed under authority of the de ignated agency f the Divi ion may, ubject to the approval of aid agency, de ignate an agency for the admini tration f the Code in such Subdivi ion. Each ubdivi i n hall be independent and elf-governing in re pect of all conditions and pr blems relating to the aid ubdivi ion exclu ively. Propo al in re pect of matters affecting more than one ubdivi i n may be initiated by any Subdivi ion and hall be ubmitted to and decided b the designated agency of the Division. The designated agency of the Division shall reserve the power and duty to enforce the pr vi ion of the Code and the rules and regulations of the Authority and of this Divisi on, including rules of fair trade practice. (e) Each ubdivi ion hereinabove named and each Subdivision hereafter e tab li hed as hereinabove provided hall have the power and authority to e iabli h "ithin the ubdivision groups of manufacturers or di tributors who e condition and problem are similar, and may authorize each of said g roup o e tabli hed to designate with the approval of the designated agency of the ubdivi i n it own administrative agency and may confer upon the administrative agency f any such group such powers and authoritie a it may deem nece ary in order to admini ter this Code within said group. Products (Art. II a) .-Woodnork (mill work) including products of planing mills operated in conjunction with retail lumberyards, and excepting Dougl:1. fir stock doors. Administrative Agency (Art. III).-The Emergency National Committee of the Woodwork Division, consisting of the Board of Directors of the ational W dwork As ociation, is designated as the agency of the Authority for the admin i tration of the Code in this Division. aid Committee is authorized t make rules and regulations necessary to administer the Code in thi Divi ion and hall designate and authorize su c h agencies as may be required for this purpo, 21. STOCK MANUFACTURERS SuBDIVI ION Subdivision ( rt. II c) .-The Stock Manufacturers Subdivi ion con ist of manufacturers of products listed below: Products (Art. II a) .-Stock or tandard doors, windows, creen , frame , trim, and miscellaneou millwork. Adminislt'ative Agency (Art. III) .-The Stock ianufacturer 'o rdinating Committee, to be compo. ed of fiye per ons elected jointly by rational D or l\Ianufacturers Association and T ational Screen . sociation, i de.iunated a the agency of the Authority and of the Emergency ational Committ e of the ,Yood~ork Divi ion for the admini tration of the od in thi ubdivi ion. aid committee i authorized to make rules and r gulation nece.' ary to admini ter the ode in thi Subdivi ion and shall de ignate and authoriz uch ag ncie a ~may be required for thi purpose. 22. WHOLE ALE DISTRIBUTORS , UBDIVI, IO ubdivision (Art. II c) .-The Whole ale Di tributor ubdivi ion con i t of whole. al di. tributor of product li. tecl below: Products (.\.rt. II a) .-Door , window , . creen., fram , trim, and mi cellaneou woodwork. Adrnfoi.trati11e ,1gency (.\.rt. III) .-The Whole::;ale ash and D or A._ ociat ion, Chicago, Illinois, i : de. iguated a the agent of the uth rity and of the Em rg ncy aiional 'onnnitt of the vYoodw rk ivision for th admini tration of ihe ode in thi , 'nbdi vi ion. , aid A .. ociation i auth ri z cl t make rules ancl regu lations necc . :ary to a mini -ter the ode in thi ubclivision and slrnll dc. i rnate and a11thor iz e uch agcncie a may be rec1uired for thi' J urpo.-.

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45 23. SPECIAL WOODWORK SUBDIVISION Subdivision (Art. II c) .-The Special Woodwork Subdivision consists of manufacturers of products listed below: Products (Art. II a) .-Made-to-order or special woodwork. Administrative Agency (Art. III) .-A committee to be selected jointly by Millwork Cost Bureau of Chicago, Illinois; Eastern Millwork Bureau of New York City, New York; and Southern Woodwork Association of Knoxville, Tenne see, to be known as the Coordinating Committee of the Special Woodwork Subdivision, is designated as the agent of the Authority and of the Emergency National Committee of the Woodwork Division for the administration of the Code in this Subdivision. The said Committee is authorized to make rules and regulations necessary to administer the Code in this Subdivision and shall designate and authorize such agencies as may be required for this purpose. 24. WOODEN p ACKAGE DIVISION Division (Art. II (c)) and Products (Art. II (a)).-The Wooden Package Division consists of manufacturers of wooden shooks, boxes, crates, baskets, hampers, and other packages or parts thereof, whether made of sawed lumber, veneer, or plywood, either knocked down or put together with nails, wire, or glue, with or without iron or wire reinforcement, together with trays and other products commonly made in box factorie . Administrative Agency (Art. III).-The National Federation of Wooden Package Associations, a coordinating agency of the Wooden Package Industry Associations, is designated as the agency of the Authority for the administration of the Code in this Division. Said National Federation, through its Board of Directors (being the Coordinating Committee of the Wooden Package Industry) , is authorized to make rules and regulations necessary to administer the Code in this Division, and shall designate and authorize such agencies as may be required for this purpose. (a) For the more effective administration and enforcement of the Code in this Division, Subdivisions shall be established as may be necessary to meet the requirements of the various groups and classifications of manufacturers included therein. (b) The follo'11ing Subdivisions are hereby established: A. Sawed Box, Shook, Crate, and Tray Subdivision. B. Plywood Package Subdivision. C. Standard Container Subdivision. D. Pacific Veneer Packages Subdivision. E. Egg Case Subdivision. F. Wirebound Box Subdivision. G. Veneer Fruit and Vegetable Package Subdivision. (c) Additional Subdivisions of this Division may be established by said Coordinating Committee with the approval of the Authority. (d) The said Coordinating Committee shall, with the approval of the Authority, designate the administrative agency under the Code in each of the foregoing Subdivisions and in such additional Subdivisions as may hereafter be established; and shall authorize the designated agency in each Subdivision to make such rules and regulations and to designate such further agencies as may be required for the administration of the Code therein. Each Subdivision shall be independent and self-governing in respect of all matters and problems relating to the said Subdivision exclusively , under the general direction of the said Coordinating Committee. Proposals in respect of matters affecting more than one Subdivision may be initiated by any such Subdivision and shall be submitted for consideration to the said Coordinating Committee. The designated agency of the Division shall reserve the power and duty to enforce the provisions of the Code and the rules and regulations of the Authority and of this Division, including rules of fair trade practice. (e) Subdivision hereinabove named, and each Subdivision hereafter established as hereinabove provi ded, shall have power and authority to establish within the Subdivision groups of manufacturers whose conditions and problems are similar, and may authori ze en.ch of said groups so established to designate with theapproYal of the des ignated agency of the Subdivision its own administrative agency and may confer upon the administrative agency of any such group such powers and authorities as it may deem necessary in order to administer this Code within said group.

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46 25. AWED-Box, HOOK, CRATE A D TRAY UBDIVI IO ubdivi ion (Art. II c) and Product (Art. II a) .-The awed-Box, hook, Crate and Tray ubdivi ion of the Wooden Package Divi ion c n i ts of manufacturer , ale ag ncie , di tributors, and the agents or repre entative thereof, f awed wooden boxe , hook , crate and tray , whether such containers be in shook or in made-up form, including complete boxe , crates and trays, a well as any porti n thereof. Administrative Agency (Art. III).-The ational Wooden Box Association, through it Board of Governors as its Coordinating Committee, is de ignated a the agency of the Authority and of the Coordinating Committee of the Wooden Package Division for the administration of the Code in thi ubdivision. Said As ociation, through its Coordinating Committee, i authorized to make rules and regulations neces ary to administer the Code in this Subdivi ion, and shall designate and authorize such agencies as may be required for this purpose. 26. PLYWOOD PACKAGE SUBDIVISION ubdivision (Art. II c) and Products (Art. II a) .-The Plywood Package Subdivision consist of manufacturers of plywood packages or containers and of flat ply,Yood for package or container purposes located in any part of the United States. Administrative Agency (Art. III) .-The Plywood Package Institute is designated as the agency of the Authority and of the Coordinating Committee of the Wooden Package Division for the administration of the Code in this Subdivision. Said Institute, through its Executive Committee, is authorized to make rules and regulations necessary to administer the Code in this Subdivision, and shall designate and authorize such agencies as may be required for this purpose. 27. STANDARD CONTAINER SUBDIVISION Subdivision (Art. II c) and Products (Art. II a) .-The Southeastern Veneer Container Subdivision of the Wooden Package Division consists of manufacturers of veneer fruit and vegetable containers and/or container material in the States of Florida, Georgia, and Alabama. Administrative Agency (Art. III) .-The Standard Container Manufacturers Association is designated as the agency of the Authority and of the Coordinating Committee of the Wooden Package Division for the administration of the Code in this Subdivision. Such Association, through its Board of Directors, is authorized to make rules and regulations necessary to administer the Code in this Subdivision, and shall designate and authorize such agencies as may be required for this purpose. 28. PACIFIC VENEER PAO;KAGE SUBDIVISION Subdivision (Art. II c) and Products (Art. II a).-The Pacific Veneer Package Subdivision of the Wooden Package Division consists of manufacturers of veneer fruit and vegetable containers and package, and parts thereof, in the states of the Pacific Slope. Administrative Agency (Art. III).-The Pacific Veneer Package Association is designated as the agency of the Authority and of the Coordinating Committee of the Wooden Package Division for the administration of the Code in this Subdivision. Such Association, through its Board of Directors, is authorized to make rules and regulations necessary to administer the Code in this Subdivision and shall designate and authorize such agencies as may be required for this purpose. 29. EGG CASE SUBDIVISION Subdivision (Art. II c) and Products (Art. II a).-The Egg Case ubdivi ion consist of manufacturers of egg cases or parts thereof of cottonwood, tupelo, gum, and other hardwoods. Administrative agency (Art. III).-The Egg Case Manufacturers Exchange is designated as the agency of the Authority and of the Coordinating Committee of the Wooden Package Division for the admini tration of the Code in thi ubdivi ion. aid Exchange, through it Executive Committee, is authorized to make rules and regulations nece sary to admini ter the Code in this ubdivi ion, and shall de ignate and authorize uch agencies as may be required for this purpo e.

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47 30. WIREBOUND Box SUBDIVISION Subdivision (Art. II c) and Products (Art. II a) .-The Wire bound Box Subdivision of the Wooden Package Division consists of manufacture rs of wirebound boxes and crates in the United States. Administrative Agency (Art. III) .-The Wire bound Box Manufacturers Association is designated as the agency of the Authority and of the Coordinating Committee of the Wooden Package Division for the administration of the Code in this Subdivision. Said Association, through its Board of Governors, is authorized to make rules and regulations necessary to administer the Code in this Subdivision and shall designate and authorize such agencies as may be required for this purpose. 30a. VENEER, FRUIT AND VEGETABLE PAc KAGE DIVISION Division (Art. II c) and Products (Art. II a).-The Veneer Fruit and Vegetable Package Subdivision consists of manufacturers of wooden boxes, crates, shooks, baskets, hampers, trays, and all kinds of wooden veneer packages used in the marketing of fresh and perishable fruits and vegetables not included in other subdivisions of the Wooden Package Division of this Code. Administrative Agency (Art. III) .-The American Veneer Package Association is designated as the agency of the Authority and of the Coordinating Committee of the Wooden Package Division for the administration of the Code in this Subdivision. Said Association, through its Board of Directors, is authorized to make rules and regulations necessary to administer the Code in this Subdivision, and shall designate and authorize such agencies as may be required for this purpose. 31. RED CEDAR SHINGLE DIVISION Division (Art. II c) .-The Red Cedar Shingle Division consists of producers and manufacturers of Western Red Cedar shingles in Washington and Oregon. Products (Art. II a) .-The following products only shall be under the jurisdiction of this Division, viz: Shingles . Administrative Agency (Art. III) .-The Washington and Oregon Shingle Association is designated as the agency of the Authority for the administration of the Code in this Division. Said Association, through its Board of Trustees, is authorized to make rules and regulations necessary to administer the Code in this Division and shall designate and authorize such agencies as may be required for this purpose. 32. STAINED SHINGLE SUBDIVISION Subdivision (Art. II c ).-The Stained Shingle Subdivision consists of persons processing, staining, and treating wood shingles in the United States. Products (Art. II a) .-The following products only shall be under the jurisdiction of this Subdivision, viz: Shingles (Stained, processed, or treated). Administrative Agency (Art. III) .-The National Stained Shingle Association is designated as the agency of the Authority for the administration of the Code in this Subdivision. The said Association, through its Board of Directors, is authorized to make rules and regulations necessary to administer the Code in this Subdivision and shall designate and authorize such agencies as may be required for this purpose. 33. OAK FLOORING DIVISION Division (Art. II c) .-The Oak Flooring Division consists of producers, manufacturers, and distributors of oak flooring throughout the United States. Products (Art. II a) .-All standard items of oak flooring as set forth in the Grading Rules and Specifications of the National Oak Flooring Manufacturers Association. Administrative Agency (Art. III) .-The National Oak Flooring Manufacturers Association is designated as the agency of the Authority for the administration of the Code in this Division. Said Association, through its Board of Directors, is authorized to make rules and regulations necessary to administer the Code of this Division and shall designate and authorize such agencies as may be required for this purpose. 34. THE VENEER DIVISION Division (Art. II c) .-The Veneer Di vision consists of producers, manufacturers, importers, and distributors of veneers throughout the United States.

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4 Products (Art. II a) .-All v n er r gardl s of species and origin except: Dougla Fir, Western Cedars, Spruce, W stern a1-1d outhern Pines, Hemlock, and such hardwood veneers as are manufactured exclusively for crates and other containers. Administrative Agency (Art. III) .-The Veneer Association is designated as the agency of the Authority for the administration of the Code in this Division. aid A sociation, through its Board of Dir ctors, is authorized to make rules and regulations necessary to administer the Code in this Division and shall designate and auth0rize such agencies as may be required for this purpose. 35. MAPLE, BEECH, AND BIRCH FLOOR! G DIVISION Division (Art. II c) .-This Division consists of manufacturers of maple, beech, and birch flooring throughout the nited State . Products (Art. II a) .-Hard mapl , beech, and birch flooring. Administrative Agency (Art. III) .-The Maple Flooring Manufacturer Association is designated as the agency of the Authority for the administration of the Code in this Division, Said Association, through an Executive Committee con isting of its President, Vice President, t,vo members appointed by the manufacturers in the northern states and one member appointed by the manufacturers in the Southern States, is authorized to make sales and regulations necessary to administer the Code in this Division, and shall designate and authorize such agencies as may be required for this purpose. 36. HARDWOOD DIMENSION DIVISION Division (Art. II c) .-The Hardwood Dimension Division con ists of manufacturers of kiln-dried hard" ood dimension stock in three distinct ections as follovr : Southeastern-North Carolina, South Carolina, Florida, Georgia, and eastern Tennessee; Central-Kentucky and Western Tennessee; SouthwesternMissouri, Arkansas, Louisiana, Mississippi, and Texas. Products (Art. II a).-Kiln-dried hardwood dimension only. Administrative Agency (Art. III) .-The Hardwood Dimension Manufacturers Association is designated as the agency of the Authority for the administration of the Code in this division. This association authorized its Executive Committee to make rules and regulations necessary to administer the Code in this division. SCHEDULE B RuLES OF FAIR TRADE PRACTICE FOR THE LUMBER AND Tn.rn1,,R PnonucTs INDU TRIES SECTION 1. Definit1ons.-(a) A manufacturer is a person who operate a mill converting logs or lumher into lumber and/or timber products. ( b ) The term "saleR company" u ed in this Code i. a company organized or owned by m;;i.nufacturers to sell th()ir ovm or other manufacturers' lumber through salaried salesmen, wholesalers, or romruission men. (c) A wholesaler is a person actively and continuously engn,ged in buyino-, a -semhling, or rehandling lumber and timber products froni nianufactur r or other wholesaler. in quantity lots and selling it principally to wholesal rs, r tailer., and recognh;ed wholeRale trade, w!10 maintains a sale organization for this purpose, a sumes credit risks and such other obligation as are in id •nt to the tran. portation and di tribution of lumb r and timl er product. . \Yholl'sale As embling :md Distributing Yards n,. defined in Divisionnl Rules and Regulations l1all als be clas ed as wholesalers. (d) A commission man i a person lorat d in the territor:v which lH' nes who r gularly se ll s in whole ale qu::intiti s for manufacturer:::; or whole.:alcr~ to recogniz d wholesale trade and who i paid a tipulated amount, (k11own as a cornmi ion) on each in
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49 the U.S.A., continuously selling and shipping lumber and timber products to foreign countries (Canada and Mexi<'o excepted) in substantial quantities. (h) An importer is a person of any nationality who brings goods, or causes .them to be brought, into the United States from any foreign country, whethe r in bond or not, and whether he is already the owner of the goods before they arrive or purchases them on delivered terms. SEc. 2. Wholesalers.-The lumber wholesaler is an economic factor in the distribution of lumber and it is recognized that he is entitled to compensation for his distribution services. (a) Each Division, and each Subdivision, through its designated agency, shall establish for its members and file with the Authority a schedule of maximum discounts to be allowed to wholesalers for distribution services. Said discounts when approved by the Authority shall remain in effect until changes are approved by it. (b) As a condition of the grant of wholesale discounts, the wholesaler shall not rebate or allow any part of said discount to any customer, or sell or offer to sell any item of lumber or timber products under the minimum prices established as provided in this Code, except'to another wholesaler or manufacturer; and he shall conform to all provisions of this Code, as they apply to him in the sale and distribution of each species. SEc. 3. Commission men.-The lumber commission man, as an agent of the seller, is entitled to compensation (commission) for his distribution services. (a) Each Division, and each Subdivision, through its designated agency, shall establish for its members and file with the Authority a schedule of maximum commissions to be paid to commission men for distribution services. Said commissions when approved by the Authority shall remain in effect until changes are approved by it. (b) As a condition of the payment to him of commissions, the commission man shall not split commissions with any customer nor shall he sell or offer to sell any item of lumber and timber products under the minimum prices established as provided in this Code, and he shall conform to all provisions of this Code as they apply to him in the sale and distribution of each species. (c) No manufacturer or wholesaler shall be permitted to have more than one commission representative for each species calling on the same trade in the same territory. SEc. 4. (a) Buyers' agents who act for the purchaser shall not be entitled to any discounts or allowances on any lumber or timber products sold to their customer stockholders, owners, partners, or parties otherwise interested. (b) No manufacturer shall give discounts to others than wholesalers or greate:r in amount than those established and filed in accordance with Section 3 (b) of these Rules, or commissions to others than commission men or greater than those established or filed in accordance with Section 4 (b) of these Rules, and no manufacturer shall give allowances of any character otherwise than in accordance with standard terms of sale as set forth in Section 5 of these Rules. (c) Direct intermanufacturer purchases or exchanges of stock, between mills of the same Division, for the filling of orders sold on a wholesale basis, shall not be considered as coming under the provisions of this Code as regards minimum prices. (d) Contractual relations between a manufacturer and his sales company, acting as sales agent or outlet at cost, shall not come under the provisions of this Code as to wholesale allowances or commissions, but the sales of any such sales company however made shall be in accordance with all provisions of this Code. SEC. 5. Sales, Orders, and Invoices.-(a) Except for water shipment, where the credit risk is satisfactory to the seller, lumber, and timber products sold by manufacturers and wholesalers shall not be more liberal to the buyer than as follows: (1) To retailers-60 days net from date of invoice, or a cash discount of 2% of the net amount after deducting actual freight if paid within 5 days after arrival of car. (2) To wholesalers-SO% of the net amount after deducting estimated freight within 15 days from date of invoice, balance less 2% of total net after deducting actual freight within 60 days from date of invoice. (3) To industrials and buyers not otherwise classified-60 days net from date of invoice or a cash discount of 2 % of the net amount after deducting freight if paid within 10 days after arrival of car. (4) Prepaid freight shall be net and subject to sight draft, or to payment upon receipt of invoice.

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50 (b) o lumber and timber products on which m1mmum prices have been establi bed under this Code shall be sold for less than the aid established prices, except when old to wholesalers under provi ions of Section 2 . (c) o lumber or timber products shall be sold with any guarantee against decline in price before or after delivery. (ct) Except for water hipment, manufacturer and whnlf', alers shall not make contracts with retailer .. and/or wholesaleri:for futur shipment to retailer at current prices for shipment over a longer pE>riod than 30 days from date of order. Except as specifically authorized by the DiviRion or uh-Division Authority, manufacturers and wholesalers shall not make contracts with industrials and/or wholesalers for Rhipments to industrials at current prict's for a longer period than three months from date of order, except when aid contracts contain a provision for a price adju tment to he effective for each ucceeding ninety-day period, which revised prices shall be not less than thee tablished minimum prices at the time of each adjustment. The foregoing restrictions shall not apply to lumber or timber products sold for a specific construction job on a cont,ract not ubject to cancellation. Complete specifications covering all orders for rail or wnter shipme11ts shall be furnished to t~e seller within tf'n days from date of order. (e) In figuring delivered prices for rail shipment, by adding freight charges to mill prices, the seller shall use the established schedule of weights for the species sold. (f) Prices shown on order and invoice shall not include any manufacturer's s::i.les, excise, privilege, or other tax, freight surcharge or charge imposed upon or incident to aid transact-ion, or by reason thereof, by any governmental authority either by present-or future enactment, and no snch tax, surcharge or charge . hall be deductible from invoice by buyer in making remittance to either manufacturer or wholesaler. (g) All quotations shall include a definite limit of time for acceptance, but in no case shall quotations be for a period longer than 15 days from date of quotation, except cm special construction projects. not to exceed 60 days. (h) No manufacturer or wholesaler shall make a carload sale that requires invoicing and delivery to more than three retailers or more than one stop-over at origin and one stop-over at destination. Pool car sales of Jess than J 0,000 feet to any one constomer shall be subject to such service charge as may be established by each of the several Divisions. Stop-over charges, if any, shall be paid by the buyer or buyers in addition to the invoice price. (i) Orders and invoices shall show terms of sales, association grade, species, quantities, sizes, and price of each item for agreed delivery. In respect to lumber and timber products not of American Lumber Standard . ize and/or a sociation gra
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51 (d) Manufacturers and wholesalers shall not misbrand or invoice falsely any lumber as to quantity, size, grade, origin, species, or condition of dryness. (e) Official inspection, when required by either buyer or seller, shall be made only by an official inspector of the manufacturers association issuing the official grading rules for the species to be inspected, applying the rules agreed to at the time of sale, or, in the event of no such agreement, the official manufacturers association grading rules and regulations under which the lumber or timber products are commonly bought and sold. (f) Except for water shipment, as certification of quantity and grade of lumber and timber products shipped, an official manufacturers association car card (shippers certificate) shall be placed in each car shipped; such certificate shall not disclose the name of the originating manufacturer but shall carry such marks or number as will enable the Division or Subdivision to trace the shipment. For shipments requiring official inspection at point of origin the official certification of the manufacturers association inspection agencies shall be furnished. (g) All lumber and timber products either rough or dressed manufactured to sizes below American Lumber Standards and/or manufacturers association standards sold on standard nominal size shall be branded "sub-standard" and such brand shall not be obliterated or removed. SEC. 7. Arbitration.-Any dispute between parties coming within the provisions of this Code involving $50.00 or more and arising out of transactions in respect to the sale of lumber and timber products, except as to grade or tally, may be referred to an arbitration committee. For this purpose the disputants agreeing to arbitration shall sign an arbitration agreement approved by the Authority for which application may be made to any Division. In the event of the failure of the disputants to agree as to the arbitration agency the Authority may designate an agency to conduct the arbitration. The findings and award of said arbitration through said agency shall be final and binding upon both parties. SEc. 8. Policing.-The authority shall establish such agencies generally distributed through the United States as it may deem necessary to provide for such prompt relaxation of these rules and/or interpretation thereof as may be necessary to prevent these rules from promoting monopolies or eliminating or oppressing small enterprises or operating to discriminate against them, and shall invest such agencies with all power and authority necessary or appropriate to secure prompt decision of such questions. SEc. 9. Export Business.-These rules shall not apply to export business which shall be subject to the supplemental Rules of Fair Trade Practice of each Division or Subdivision. 0

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UNIVERSITY OF FLORIDA II I II IIIIII Ill I l l lllll l llll I I IIIIII II IIIII IIII Ill 111111111111111 3 1262 08582 9827