Citation
Code of fair competition for the wood preserving industry as approved on July 13, 1934

Material Information

Title:
Code of fair competition for the wood preserving industry as approved on July 13, 1934
Portion of title:
Wood preserving 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:
p. 85-97 : ; 24 cm.

Subjects

Subjects / Keywords:
Wood -- Preservation -- United States ( lcsh )
Preserved wood -- 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. 362-02."
General Note:
"Approved Code No. 481."

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:
004931519 ( ALEPH )
63654570 ( OCLC )

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Full Text






NATIONAL RECOVERY ADMINISTRATION





CODE OF FAIR COMPETITION

FOR THE


WOOD PRESERVING INDUSTRY


AS APPROVED ON JULY 13, 1934


WE DO OUR PART


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


r sale by the Superintenden of cents Washington, D.C ice 5 cents
For sale by the Superintendeni of Dccuments. Washington, D.C. - P-ice 5 cents


Approved Code No. 481


Registry No. 326-02























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas. Tex.: Chamber of Commerce Building.
Detroit, Mich: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pit tsburgh. Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.













Approved Code No. 481


CODE OF FAIR COMPETITION
FOR THE

WOOD PRESERVING INDUSTRY

As Approved on July 13, 1934


ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE WOOD PRESERVING
INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Wood Preserving Industry, and hearings
having been duly held thereon and the annexed report on said Code,
containing findings with respect thereto, having been made and
directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects with
the pertinent provisions and will promote the policy and purposes of
said Title of said Act; and do hereby order that said Code of Fair
Competition be and it is hereby approved.
HnaH S. JOHNSON,
Administrator for Industrial Recovery.
Approval recommended:
BARTON W. MURRAY,
Division Administrator.
WASHINGTON, D.C.,
July 13, 1934.


73629--829-62--34


(85)












REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: This is a report on the Code of Fair Competition for the
Wood Preserving Industry, as revised after a public hearing con-
ducted in Washington, D.C., on April 6, 1934, in accordance with the
provisions of Title I of the National Industrial Recovery Act.

PROVISIONS AS TO HOURS AND WAGES
Employees are not permitted normally to work in excess of eight
hours per day or forty hours per week. When peaks of production
or climatic conditions make necessary longer working periods, forty-
eight hours per week is permitted for not to exceed twelve weeks of
the year. Employees are not permitted to work more than six days
out of any seven.
Hourly limitations do not apply to executives, supervisors, chem-
ists or technical engineers who regularly receive thirty-five dollars
or more per week, nor to outside buyers and outside salesmen; nor
to employees engaged in emergency work involving breakdowns or
the protection of life or property, provided one and one-half times
the normal rate is paid for hours worked in excess of forty-four per
week or ten per day. Employers shall not permit accounting, cleri-
cal or office employees to work in excess of forty hours per week.
Watchmen are not permitted to work in excess of fifty-six hours per
week.
Minimum hourly rates of pay are established in four regional
divisions: (a) forty cents on the Pacific coast, (b) twenty-eight
cents in an intermediate zone between northern and southern regions,
(c) twenty-five cents in the southern region and (d) thirty-five
cents in the balance and geographically larger part of the country.
Female employees performing substantially the same work as male
employees shall receive the same rate of pay as male employees.
Accounting, clerical, office, service, delivery and sales employees,
outside buyers and watchmen shall receive a minimum of either
fifteen, fourteen and one-half or fourteen dollars a week depending
upon the population of the place of their employment but in no
event less than twelve dollars a week. Junior office employees are
limited to five percent of the number of office employees, and shall
receive not less than the minimum of twelve dollars a week.
A minimum rate of pay is established, regardless of whether an
employee is compensated on a time rate, piece work or other basis.
Compensation of employees receiving more than the minimum shall
be equitably adjusted and reported to the Code Authority but in no
event shall rates of pay be reduced. No person under sixteen years
of age shall be employed in the Industry nor any person under
eighteen years of age in hazardous operations.
(86)








ECONOMIC EFFECTS OF THE CODE

This Industry is of considerable significance in the conservation of
our forest resources. Through its operations, woods of short natu-
ral life are so treated as to have comparable value in various con-
struction uses, with wood of greater value and even with reinforced
concrete.
Prior to the National Industrial Recovery Act, the standard work-
week in the Industry was sixty hours. The actual average of hours
worked per week was fifty hours, resulting from various causes.
Under the Code this has been reduced to a standard of forty hours,
with flexibility obtained by permitting a maximum of forty-eight
hours when peaks of demand, weather or other conditions peculiar
to the Industry, require these hours.
Employment in 1929 totaled 10,000 workers. This declined in
June, 1933, to about 5,500. Under the President's Reemployment
Agreement somewhat over 1,000 have been reemployed.
The Code wage rates represent wage increases in the three sec-
tions of the country, of from four to sixty-eight percent over un-
skilled labor rates prevailing in June, 1933. It is estimated that
over thirty-five percent of the plant employees will benefit.
As a result of setting up a borderline territory between the dis-
tinctly northern and southern sections of the country, some improve-
ment in the competitive situation may be expected, in addition to
benefits to labor in this section.

FINDINGS
The Assistant Deputy Administrator in his final report to me on
said Code, having found as herein set forth and on the basis of all
the proceedings in this matter;
I find that:
(a) -Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agri-
cultural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,0'10 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provision of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicant group is
truly representative of the aforesaid Industry.






88

(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
Code.
For these reasons, therefore, the Code has been approved.
Respectfully,
HUGH S. JOHNSON,
Administrator.
JULY 13, 1934.













CODE OF FAIR COMPETITION FOR THE WOOD
PRESERVING INDUSTRY

ARTICLE I-PURPOSE

To effectuate the policies of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Code of
Fair Competition for the Wood Preserving Industry, and shall be
the standard of fair competition for this Industry, and shall be
binding upon every member thereof.

ARTICLE II-DEFINTrONS

SECTION 1. The term Wood Preserving Industry or industry"
as used herein is defined to mean the business of preservatively treat-
ing wood by pressure processes on a commercial basis, involving
sale of services and/or materials whether as a final process or as a
part of a larger or further process.
SEcTION 2. The term pressure processes as used herein is de-
fined to mean those processes in which pressure is employed to force
preservative into wood enclosed in a sealed vessel.
SECTION 3. The term member of the Industry" as used herein
includes any individual, partnership, association, corporation or
other entity engaged in the Industry as above defined, either as an
employer or on his or its own behalf.
SECTIO 4. The term employee as used herein includes any and
all persons engaged in the Industry in any capacity, receiving com-
pensation for his services, irrespective of the nature or method of
payment of such compensation, except a member of the Industry.
SECTION 5. The term employer as used herein includes anyone
in the Industry by whom any such employee is compensated or
employed.
SECTION 6. The terms President ", "Act", and "Administrator"
as used herein, mean respectively, the President of the United States,
Title I of the National Industrial Recovery Act, and the Adminis-
trator for Industrial Recovery.
SECTION 7. The terms "population" and "trade areas" as used
herein shall be determined by reference to the latest Federal Census.

ARTICLE III-HorsR
SECTION 1. No employee shall be permitted to work in excess of
eight (8) hours per day and/or forty (40) hours per week, except
as provided in later sections of this article, or as climatic conditions
or peaks of product ion make necessary longer working periods, when
additional hours may be worked in any week but not to exceed
a total of ninety-six (96) additional hours in any calendar year and
(89)








not to exceed forty-eight (48) hours in any week. If, in such
periods, any employee works in excess of forty-four (44) hours
per week and/or ten (10) hours per day, he shall be compensated for
such excess hours at one and one-half times his normal hourly rate.
SECTION 2. The limitations on hours of work contained herein
shall not apply to executives, supervisors, chemists, technical engi-
neers regularly receiving thirty-five (35) dollars or more per week
nor to outside salesmen and outside buyers; provided, however, that
supervisors engaged in manual labor or mechanical operations are
not included in this exception.
SECTION 3. Employees engaged in emergency work involving
breakdowns or the protection of life or property may be permitted
to work in excess of the maximum hours, provided that all hours
worked in excess of forty-four (44) in any week and/or ten (10)
in any day are paid for by overtime of at least one and one half
times the normal hourly rate.
SECTION 4. Watchmen shall not be permitted to work in excess of
fifty-six (56) hours in any week, no overtime being required.
SECTION 5. Accounting, clerical and office employees shall not. be
permitted to work in excess of forty (40) hours in any week, or
nine (9) hours in any day. A normal day shall not exceed eight
(8) hours.
SECTION 6. No employee shall be permitted to work more than
six (6) days in any seven (7) day period.
SECTION 7. No employer shall knowingly permit any employee to
work for any time which, when added to the time spent at work for
another employer or employers, exceeds the maximum permitted
herein.
SECTION 8. Employers shall so administer work in their charge as
to provide a maximum practicable continuity of employment for
their employees.
ARTICLE IV-WAGES
SECTION 1. No employee, except as herein provided, shall be paid
less than:
(a) Forty (40) cents per hour in the Pacific Coast Region, which
shall consist of the States of California, Oregon, except Wasco
County, and Washington, except Spokane County.
(b) Twenty-eight (28) cents per hour in that part of West Vir-
ginia south and west of the Kanawha and New Rivers; the State of
Kentucky; the southern tier of Indiana Counties which border the
Ohio River; the Illinois Counties of White, Hamilton, Jefferson,
Washington, Randolph and the other counties south of the above
mentioned, in the State of Illinois, and in the State of Virginia,
except, Nansemond and Norfolk Counties.
(c) Twenty-five (25) cents per hour in the States of Texas, Okla-
homa, Arkansas, Louisiana, Mississippi, Tennessee, Florida, Ala-
bama, Georgia, South Carolina, North Carolina and in the Virginia
Counties of Nansemond and Norfolk.
(d) Thirty-five (35) cents per hour in all other states and parts
thereof.
SECTION 2. Minimum rates of pay established shall apply irre-
spective of whether an employee is compensated on a time rate,
piece work, or other basis.








SECTION 3. Equitable adjustment of compensation of employees
receiving more than the minimum rates of pay herein prescribed
shall be made by all employers who have not heretofore made such
adjustments under the National Industrial Recovery Act and all
employers shall within sixty (60) days after approval of this Code,
report in full to the Code Authority and the Administrator for ap-
proval concerning such adjustments provided, however, that in no
event shall present rates of pay be reduced. Such report shall indi-
cate wages before and after adjustment and the dates of adjustment.
SECTION 4. Accounting, clerical, office, service, delivery and sales
employees, outside buyers, and watchmen, except office boys and
girls, shall be paid not less than fifteen (15) dollars per week in any
city of over 500,000 population, or in the immediate trade area of such
city; nor less than fourteen and one-half (141/2) dollars per week
in any city between 250,000 and 500,000 population, or in the imme-
diate trade area of such city; nor less than fourteen (14) dollars
per week in any city or place of between 2,500 and 250,000 popula-
tion, or in the immediate trade area thereof; nor less than twelve
(12) dollars in places of less than 2,500 population.
Office boys and girls shall be paid at least eighty (80) per cent
of the above minimum weekly rates but in no event less than twelve
(12) dollars per week; provided that the number of such employees
does not exceed five (5) per cent of the total employees in any one
office. Each office may have at least one such employee.
SECTION 5. A person whose earning capacity is limited because of
age or physical or mental handicap may be employed on light work
at a wage below the minimum established by this Code, if the em-
ployer obtains from the state authority designated by the United
States Department of Labor, a certificate authorizing his employ-
ment at such wage as shall be stated in the certificate, but such
employees shall not exceed five per cent of any employer's total
number of employees. Each employer shall file with the Code Au-
thority a list of all such persons employed by him.
SECTION 6. Employers shall make payment of all wages due in
lawful currency or by negotiable check at regular pay periods, which
shall occur at least twice each month. These payments shall be
exempt from any deductions for pensions, insurance or sick bene-
fits other than those voluntarily made by employees or required by
law. The employer or his agent shall accept no rebates directly or
indirectly on any wages.
SECTION 7. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
employees.
ARTICLE V-GENURAL LABOR PROVISIONS

SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry, nor anyone under eighteen (18) years of
age at occupations hazardous in nature or detrimental to health.
The Code Authority shall submit to the Administrator for approval
within three (3) months after the effective date of this Code a list
of all such occupations. In any State, an employer shall be deemed
to have complied with .this provision if he shall have on file a cer-
tificate or permit duly issued by the authority in such State empow-








ered to issue employment or age certificates or permits, showing that
the employee is of the required age.
SECTION 2. It is hereby provided that:
(a) Employees shall have the right to organize and bargain col-
lectively 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 re-
quired as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his own choosing; and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment ap-
proved or prescribed by the President.
SECTION 3. No provision in this Code shall supersede any State
or Federal law which imposes on employers more stringent require-
ments as to the age of employees, wages, hours of work, or as to
safety, health, sanitary or general working conditions, or insurance,
or fire protection, than are imposed by this Code.
SECTION 4. All employers shall post and keep posted official copies
of the labor provisions of this Code in conspicuous places accessible
to all employees. Every member of the Industry shall comply with
all rules and regulations relative to the posting of provisions of
Codes of Fair Competition which may from time to time be
prescribed by the Administrator.
SECTION 5. No employer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge so as to
defeat the purposes or provisions of the Act or of this Code.
SECTION 6. Every employer shall provide for the safety and health
of employees during the hours and at the places of their employ-
ment. Standards for safety and health shall be submitted by the
Code Authority to the Administrator for approval within three (3)
months after the effective date of the Code.
SECTION 7. No employee shall be discharged by reason of making
a complaint or giving evidence with respect to an alleged violation
of this Code.
SECTION 8. No employee now employed at a rate above the mini-
mum shall be di-scharged and reemployed or replaced at a lower rate
for the purpose of evading the provisions of this Code.
SECTION 9. The Code Authority shall make a study of the effects
upon the Industry and upon the employees engaged therein, of the
wage and hour provisions of the Code, having in view the practi-
cability of (1) reducing the maximum hours permitted, (2) increas-
ing the hourly wnage rates, (3) whether Nansemond and Norfolk
Counties. Virginia, shall be included in Paragraph (b) of Section 1,
Article IV, and (4) whether Spokane County, Washington, and
Wasco County, Oregon, shall be excepted from Paragraph (a), Sec-
tion 1, Article IV. A report on this study together with conclusions
and recommendations of the Code Authority shall be submitted to
the Administrator for consideration within three (3) months after
the effective date of the Code.








ARTICLE VI-ADMINISTRATION
SECTION 1. To further effectuate the policies of the Act, a Code
Authority is hereby constituted to cooperate with the Administra-
tor in the administration of this Code. This Code Authority shall
consist of members who shall be elected in the following manner
and hold office for one year:
(a) One (1) member to be elected by each company of the Indus-
try having 150,000 cubic feet of treating cylinder capacity or more.
(b) Four (4) members to be elected by the remaining companies
of the Industry on a cubic capacity basis,--one (1) vote for each
cubic foot of treating cylinder capacity.
(c) Two (2) members to be elected by all of the companies of the
Industry on the basis of one (1) vote for each company of the
Industry.
SECTION 2. With respect to election and representation on the Code
Authority each company, together with its owned and/or controlled
subsidiaries or affiliates, shall be treated as one entity. Only one
representative of such company or entity shall be eligible to mem-
bership on the Code Authority at one time. Each such company or
entity shall have only one (1) vote when voting as a company as
provided in Section 1 of this Article. Companies or entities as
used herein are to be considered in relation to the definition of and
be synonymous with the term member of the Industry in Article
II of this Code.
SETION 3. Treating cylinder capacity for each company or entity
as defined in the preceding Section 2 shall be figured within the
thirty (30) days immediately preceding an election. This capacity
shall be calculated by the following mathematical formula: 3.1416
times inside radius squared times inside length of cylinder.
SECTION 4. A quorum of the Code Authority shall consist of six
(6) of the eight (8) members thereof, which latter number of
members represents the Industry as it is now constituted.
SECTION 5. At any meeting of the Code Authority if a quorum of
six (6) is present, they may act and vote on any matter properly
before them, provided the vote is unanimous.
SECTION 6. If objection to any matter or action is raised by a
member of the Code Authority, then the entire Code Authority must
be polled and the affirmative vote of seven (7) out of the total
membership of eight (8) will be necessary to pass any motion.
SECTlON 7. In the event of a vacancy in the Code Authority, the
remaining members, subject to Sections 5 and 6 on voting, shall fill
such vacancy from the group in which the vacancy occurs before
any further business is transacted.
SECTION 8. A temporary Code Authority is hereby set up and shall
consist of the individuals who were named in a resolution at a meet-
ing in Chicago on August 21, 1933, to represent the Industry in the
negotiations with the National Recovery Administration and to
negotiate for the Industry this Code; said resolution was amended
by a unanimous vote in a resolution adopted at Washington, D.C.,
by the Committee acting for the Industry on April 23, 1934. This
temporary Code Authority shall serve for a period of ninety (90)






94

days after the effective date of this Code, and until its successors
are elected in the manner above provided.
SECTION 9. In addition to membership on both the temporary and
permanent Code Authorities as herein provided, there may be three
(3) members, without vote and without cost to the Industry, to be
known as Administration members, to be appointed by the Adminis-
trator to serve for such terms as he may specify.
SECTION 10. The temporary Code Authority shall act as an agency
for holding the election of the permanent Code Authority. It shall
cause notice to be sent to all members of the Industry who are regis-
tered with it or whose names and addresses can be ascertained by
reasonable inquiry, by registered mail ten (10) days preceding the
date of the election. Votes shall be cast in the manner above pre-
scribed and votes may be cast either in person, by proxy, or by letter
ballot.
SECTION 11. Nominations may be made through a nominating
committee appointed by the Code Authority, but members of the
Industry shall have the right to make nominations from the floor, or
vote for any individuals of their choice, by specifying their names in
the written proxies or in the letter ballots. Nominations when made
shall be made in accord with Section 1, paragraphs (a), (b) and
(c) of this Article.
SECTION 12. Any industrial association or group directly or indi-
rectly participating in the selection or activities of the Code Author-
ity shall (1) impose no inequitable restrictions on membership, and
(2) submit to the Administrator true copies of its articles of associa-
tion, bylaws, regulations, and any amendments when made thereto,
together with such other information as to membership, organiza-
tion, and activities as the Administrator may deem necessary to
effectuate the purposes of the Act.
SECTION 13. In order that the Code Authority shall at all times
be truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may prescribe
such hearings as he may deem proper; and thereafter, if he shall
find that the Code Authority is not truly representative or does not
in other respects comply with the provisions of the act, may require
an appropriate modification in the method of selection of the Code
Authority.
SECTION 14. Nothing in this Code shall constitute the members of
the Code Authority partners for any purpose. Nor shall any mem-
ber of the Code Authority be liable in any manner to anyone for any
act of any other member of the Code. Authority. Nor shall any
member of the Code Authority exercising reasonable diligence in
the conduct of his duties hereunder, be liable to anyone for any act
or omission to act under this Code, except for his own wilful mis-
feasance or nonfeasance.
SECTION 15. Any interested party shall have the right of com-
plaint to the Code Authority or proper agency and a prompt hear-
ing and decision thereon. Any interested party shall have the right
to appeal to the Administrator, under such rules and regulations as
the Administrator shall prescribe, with respect to any decision, rule,
regulation, order, or finding made. by the Code Authority.








SECTION 16. If the Administrator shall determine that any action
of the Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may require
that such action be suspended to afford an opportunity for investiga-
tion of the merits of such action and further consideration by such
Code Authority or agency pending final action, which shall not be
effective unless the Administrator approves or unless he shall fail
to disapprove after thirty (30) days' notice to him of intention to
proceed with such action in its original or modified form.
SECTION 17. Subject to such rules and regulations as may be issued
by the Administrator, the Code Authority shall have the following
powers and duties, in addition to those authorized by other provisions
of this Code:
(a) To insure the execution of the provisions of this Code and to
provide for the compliance of the Industry with the provisions of
the Act.
(b)To adopt bylaws and rules and regulations for its procedure.
(c) To obtain from members of the Industry such information
and reports as are required for the administration of the Code. In
addition to information to be submitted to the Code Authority, all
or any of the persons subject to this Code, shall furnish such statis-
tical information as the Administrator may deem necessary for the
purposes recited in Section 3 (a) of said Act to such Government
agencies as the Administrator may designate; nor shall anything in
this Code relieve any person of any existing obligation to furnish
reports to Government agencies.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
(e) To make recommendations to the Administrator for the co-
ordination of the administration of this Code with such other Codes,
if any, as may be related to or affect members of the Industry.
SECTION 18. It being found necessary to support the administra.
tion of this Code, and to maintain the standards of fair competition
established by this Code and to effectuate the policy of the Act, the
Code Authority is authorized, subject to the approval of the Admin-
istrator, to incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Code; and to submit
to the Administrator for his approval, subject to such notice and op-
portunity to be heard as he may deem necessary, (1) an itemized
budget of its estimated expenses for the foregoing purposes, and, (2)
an equitable basis on which the funds necessary to support such
budget shall be contributed by members of the Industry. After
such budget and basis of contribution have been approved by the
Administrator, the Code Authority shall determine the amount of
such contributions and secure the same as above set forth, and to that
end, if necessary, may institute legal proceedings therefore in its
own name. The Code Authority shall neither incur nor pay any








obligation in excess of the amount thereof as estimated in its ap-
proved budget, except upon approval of the Administrator; and no
subsequent budget shall contain any deficiency item for expenditures
in excess of prior budget estimates except those which the Adminis-
trator shall have so approved.
SECTION 19. Only members of the Industry complying with the
Code and contributing to the expenses of its administration, as pro-
vided in Section 18 hereof, shall be entitled to participate in the
selection of the members of the Code Authority or to receive the
benefit of its voluntary activities or to make use of any emblem or
insignia of the National Recovery Administration.
SECTION 20. Each member of the Industry shall pay his or its
equitable contribution to the expenses of maintaining the Code
Authority pro rated according to treating cylinder capacity.
SECTION 21. The Code Authority is authorized to recommend to
the Administrator any action or measures deemed advisable, includ-
ing further fair trade practice provisions to govern members of the
Industry in their relations with each other or with other trades or
industries; measures for industrial planning, and stabilization of
employment; and including modifications of this Code which shall
become effective as part hereof upon approval by the Administrator
after such notice and hearing as he may specify.
SECTION 22. The Code Authority is authorized to appoint a Trade
Practice Committee which shall meet with the Trade Practice Com-
mittees appointed under such other codes as may be related to the
Industry for the purpose of formulating fair trade practices to
govern the relationships between production and distribution em-
ployers under this Code and under such other Codes to the end that
such fair trade practices may be proposed to the Administrator as
amendments to this Code and such other Codes.

ARTICLE VII-COSTS AND PRICES
SECTION 1. The Code Authority shall cause to be formulated
methods of cost finding and accounting capable of use by all members
of the Industry, and shall submit such methods to the Administrator
for review. If approved by the Administrator, full information
concerning such methods shall be made available to all members of
the Industry. Thereafter, each member of the Industry shall utilize
such methods to the extent found practicable. Nothing herein con-
tained shall be construed to permit the Code Authority, any agent
thereof, or any member of the Industry to suggest uniform additions,
percentages or differentials or other uniform items of costs which
are designed to bring about arbitrary uniformity of costs or prices.
ARTICLE VIII-TRADE PRACTICE RULES

It shall constitute an act of unfair competition for a member of
the Industry to:
(a) Secretly offer or make any payment or allowance of a rebate,
refIundl, coiirmi-sion, credit, unearned discount or excess allowance,
whether in the form of money or otherwise, nor shall a member of
the Industry secretly offer or extend to any customer any special








service or privilege not extended to all customers of the same class,
for the purpose of influencing a sale.
(b) Disseminate any false or misleading information relative to
any product or price for any product, within the Industry, of any
member of the Industry, or the credit standing or ability of any
member thereof to perform any work or manufacture or produce
any such product, or to the conditions of employment among the
employees of any member thereof.
(c) Give, permit to be given, or offer to give, anything of value
for the purpose of influencing or rewarding the action of any em-
ployee, agent, or representative of another in relation to the busi-
ness of the employer of such employee, the principal of such agent
or the represented party, without the knowledge of such employer,
principal or party. This provision shall not be construed to pro-
hibit free and general distribution of articles commonly used for
advertising except so far as such articles are actually used for com-
mercial bribery as hereinabove defined.

ARTICLE IX-MONOPOLIES

SECTION 1. No provision of this Code shall be interpreted or ap-
plied in such manner as to promote or permit monopolies or monopo-
listic practices; permit or encourage unfair competition; eliminate
or oppress small enterprises or discriminate against them.
ARTICLE X-MODIFICATION

SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regu-
lation issued under Title I of said Act and specifically, but without
limitation, to the right of the President to cancel or modify his
approval of this Code or any conditions imposed by him upon his
approval thereof.
SECTION 2. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes in circum-
stances, such modification to be based upon application to the Ad-
ministrator and such notice and hearing as he shall specify, and to
become effective on approval of the President.

ARTICLE XI-GENERAL

SECTION 1. Violation by any member of this Industry of any of
the provisions of this Code or any approved amendment hereof is an
unfair method of competition.

ARTICLE XII-EFFECTIVE DATE

SEcrION 1. This Code shall become effective on the third Monday
after its approval by the President.
Approved Code No. 481.
Registry 326-02.




UNIVERSITY OF FLORIDA
Hl 1 262II1iil i0 i lli l HI 1111111111111111
3 1262 08583 0361




Full Text

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Approved Code No. 481 Registr y No. 3 26-02 NATIONAL RECOVERY ADM I NISTRATIO N CODE OF FAIR COMPETITION FOR THE WOOD PRESERVING INDUSTRY AS APPROVED ON JULY 13, 1934 WE DO OUR PART ' . ' ' U . .;;;. DE UNITED S T A T E S GOVERNMENT PRINTI N G O FFICE WASHINGTON: 1934 For sal e by the Superintendent of Dccuments, Washington, D.C. ------Price 5 cents

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This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala.: 257 Federal Building. Boston, Mass.: 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. Dallas, Tex.: Chamber of Commerce Building. Detroit, Mich: 801 First National Bank Building. Houston, Tex.: Chamber of Commerce Building. Indianapolis, Ind.: Chamber of Commerce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas City, Mo. : 1028 Baltimore Avenue. Los Ange les, Calif.: 1163 South Broadway. Louisville, Ky.: 408 Federal Building. Memphis, Tenn.: 229 Federal Building. Minneapolis, Minn.: 213 Federal Building. New Orleans, La.: Room 225-A, Customhouse. New York, N.Y. : 734 Customhouse. Norfolk, Va.: 406 Ea t Plume Street. Philadelphia, Pa.: 422 Commercial Trust Building. Pittsburgh, P a .: Chamber of Commerce Building. Portland, Oreg.: 215 New Post Office Building. St. Loui , Mo.: 506 Olive Street. San Franci co, Calif.: 310 Customhouse. Seattle, Wash.: 809 Federal Office Building.

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Approved Code No. 481 CODE OF FAIR COMPETITION FOR THE WOOD PRESERVING INDUSTRY As Approved on July 13, 1934 ORDER APPROVING CODE OF FAIR COMPETITION FOR THE w OOD PRESERVING INDUSTRY An application having been duly ma.de pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for approval of a Code of Fair Competition for the Wood Preserving Industry, and hearings having been duly held thereon and the annexe d report on said Code, containing findings with respect thereto, having been made and directed to the President: NOW, THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson Administrator for Industrial Recovery, pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise; do hereby incorporate by reference said an nexed re :port and do find that said Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code of Fair Competition be and it is hereby approved. HUGH s. JOHNSON, Administrator for Industrial Recovery. Approval recommended: BARTON w. MURRAY, Divis-ion Admvnistrator . VVASHINGTON, D.C., July 13, 1934. 73629-829-62-34 (85)

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REPORT TO THE PRESIDENT The PRESIDENT, The White House. SIR: This is a report on the Code of Fair Competition for the Wood Preserving Industry, as revised after a public hearing conducted in Washington, D. C . , on April 6, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. PROVISIONS AS TO HOURS AND WAGES Employees are not permitted normally to work in excess of eight hours per day or forty hours per week. When peaks of production or climatic condition!e make necessary longer working period , fortyeight hours per week is permitted for not to exceed twelve weeks of the year. Employees are not permitted to work more than six days out of any seven. Hourly limitations do not apply to executives, supervisors, chem fats or technical engineers who regularly receive thirtyfive dollars or more per week, nor to outside buyers and outside salesmen; nor to employees engaged in emergency work involving breakdowns or the protection of life or property, provided one and one-half times the normal rate is paid for hours worked in excess of forty-four per week or ten per day. Employers shall not permit accounting, cleri cal or office employees to work in excess of forty hours per week. Watchmen are not permitted to work in excess of fifty-six hours per week. Minimum hourly rates of pay are established in four regional divisions: (a) forty cents on the Pacific coast, (b) twenty-eight cents in an intermediate zone between northern and southern regions, ( c) twenty-five cents in the southern r eg ion and ( d) thirty-five cents in the balance and geographically larger part of the country. Female employees performing substantially the same work as male employees hall receive the same rate of pay as male employees . Accounting, clerical, office, service, delivery and sales employees, outside buyer an l ,Yatchmen shall receive a minimum of eith r fifteen, fourteen and one-half or fourteen dollars a week d pending upon the population of the place of their employment but in no event le s s than twelve dollar a week. Junior offi e employ e are limited to fiv per ent of the number of office employe , and shall rec ive not 1 than the minimum of tweh e dollars a week. minimum rate of pay is established, regardle s of whether an employee is comp nsated on a time rate, piece work or oth r ba is. Comp n ation of employ es r c ivino-mor than the minimum shall be equitably adju ted and reported to th Code Authority but in no ev nt hall rates of pay be reduced. No person under sixte n y ars of a shall b mployed in the Indu try nor any p r on under eighteen year of age in hazardous operations. (86)

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87 ECONOMIC EFFECTS OF THE CODE This Indu try is of considerable significance in the conservation o:f our fore t re...,ources. Through its operations, woods of short natural life are so treated as to have comparable value in various construction use with wood of greater value and even with reinforced concrete. Prior to the ational Industrial Recovery Act, the tandard work week in the Indu try wa sixty hours. The actual average of hours worked per week was fifty hours, re ultino-from various cau es. Under the Code this has been reduced to a tandard of forty hours, with flexibility obtained by permitting a maximum of forty-ejght hours when peak of demand, weather or other conditions peculiar to the Industry, require the e hours. Employment in 1929 totaled 10,000 worker . This declined in June, 1933 to about 5 500. nder the Presidents R eemployment Agreement ome\fhat over 1,000 have been reemployed. The Code wage rates represent wage incre.ases in the three sec tions of the country, of from, four to ixty-eight percent over un skilled labor rates prevailing in June, 1933. It is estimated that over thirty-five percent of the plant employees will benefit. As a result of setting up a borderline territory between the dis tinctly northern and southern sections of the countr ome improvement in the competitive situation may be expected, in addition to benefits to labor in this section. FINDINGS The A sistant Deputy Administrator in his final report to me on said Code, having found as herein set forth and on the ba is of all the proceedings in this matter; I find that: (a) -said Code is well designed to promote the policies and pur po es of Title I of the ational Indu trial Recovery Act including remova l of obstructions to the free fl.ow of interstate and foreign commerce which tend to dimini h the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade group , by inducing and maintaining united action of labor and management under adequate governmental anctions and upervi ion by eliminatjng unfair competitive practice by promoting the fullest po ible utilization of the present productive capacity of indu~trie by avoiding undue re triction of production ( except a may be temporarily required) by increasing the con umption of indu trial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving tandards of labor, and by otberwi e rehabilitating indu try. (b) Said Indu try normally emplov not more than 50,0 0 0 em ployees and is not cla ified by me a a major indu try. (c) The Code a approved complie in all re pects with the pertinent provision of said Title of said Act including without limitation Sub ection (a) of Section 3, Sub ection (a) of Section 7 , and Sub section (b) of S e ction 10 thereof and that the applicant group is trul repre...,entative of the afore aid Indu try.

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88 ( d) The Code is not designed to and will not permit monopolies or monopoli sti_c practices. ( e) The Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. (f) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Code. For these reasons, therefore, the Code has been approved. Respectfully, HUGH s. JOHNSON, A d1ninistrator. JULY 13~ 1934.

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CODE OF FAIR COMPETITIO PRESERVI G I D FOR THE WOOD TRY ARTICLE I-PURPOSE To effectuate the policies of Title I of the ational Industrial Re covery Act, the following provisions are established as a Code of Fair Competition for the Wood Preserving Industry, and hall be the standard of fair competition for this Industry, and shall be binding upon every member thereof. ARTICLE II-DEFINITIO~S SECTION 1. The term" Wood Preserving Industry" or" indu try" as used herein is defined to mean the business of preservatively treating wood by pressure proce ses on a commercial basis, involving sale of services and/or materials whether as a final process or as a part of a larger or further process. SECTION 2. The term " pre sure processes " as used herein is de fined to mean those processes in which pre sure is employed to force preservative into wood enclo..,ed in a sea l ed ve sel. SECTION 3. The term "member of the Industry" as used herein includes any individual, partner hip, association, corporation or other entity engaged in the Industry as above defined, either as an employer or on his or its own behalf. SECTIO 4. The term "employee" as u sed herein includes any and all persons engaged in the Indu try in any capac ity, receiving compen ation for his services, irrespect ive of the nature or method of payment of such compen ation, excep t a member of the Industry. ECTION 5. The term "employer" as u ed herein includes anyone in the Industry by whom any such emp loyee is compensated or employed. SECTION 6. The terms "Pre ident" "Act", and "Admini trator" as used herein mean r e pectively, the Pre ident of the nited States, Title I of the ational Industrial R ecovery Act, and the Administrator for Industrial R ecovery . SEOTION 7. The terms "population" and "trade areas" as used herein hall be determined by r eference to the latest Federal Census. ARTICLE III-HoURs SECTION 1. o employee hall be permitted to work in exce of eight ( ) hours per day and/or forty ( 40) hours per week except as provided in later ections of thi article or a climatic cond itions or peaks of production make nece ary longer working periods, when additional hour may be worked in any week but not to exceed a total of ninety-ix (96) additional hours in any calendar year and (89)

PAGE 8

90 not to exceed forty-eight ( 48) hours in any week. I in such periods, any employee works in excess of forty-four ( 44) hours per week and/ or ten (10) hours per day he shall be compensated for such excess hours at one and one-half tin1es his normal hourly rate. SECTION 2. The limitations on hours of work contained herein shall not apply to exe c utives, supervisors, chemists technical engi neers regularly receiving thirty-five (35) dollars or more per week nor to out ide salesmen and out ide buyers provid d, however, that supervisors engaged in manual labor or mechanical operations are not included in this exception. SECTION 3. Employees enga.ged in emergency work involving breakdown or the protection of life or property may be permitted to work in excess o:f the maximum hours, provided that all hours worked in exces o:f forty-four (44) in any week and/or ten (10) in any day are paid for by overtin1e of at lea t one and one hal:f times the normal hourly rate. SECTION 4. Watchmen shall not be permitted to work in exces of fifty-ix ( 56) hours in any week, no ov ertime being required. SECTION 5. Accounting, clerical and office employees shall not be permitted to work in exce s of forty ( 40) hours in an week or nine (9) hours in any day. A normal day shall not exceed eight (8) hours. SECYTION 6. Jo employee shall be permitted to work more than six (6) days in any sev en (7) day period. SECTION 7. o employer shall knowingly permit any en1ployee to work for any time which, when added to the time spent at work for another employer or employers, exceeds the maximum permitted herein. SECTION 8. Employers shall so administer work in their charge as to provide a maximum prac ticable continuity of employment for their employees. .ARTICLE IV-W .AGES SECTION 1. o employee, except as herein provided, shall be paid 1 than: (a) Forty (40) cent per hour in the Pacific Coa t Region which shall consi t of the States of California Oreo-on , except W a co County, and Washington, except Spokane County. (b) Twenty-eight (2 8 ) cents per hour in that part of West Virginia south and west of the Kanawha and ew Riv r the State 0 Kentucky; the outhern ti r of Indiana Counti which border the Ohio River; the Illinois Countie of "\Vhite, Hamilton, Jeff rson, W a hin ton, Randolph and the other countie outh of the above m ntion d in the State of Illin is and in th Stat o:f irgin1a, ex ep t ansemond and orfolk ounties. ( c ) Twenty-fi (2 ) c n p r hour in th State f T xa Oklahoma, Arkan a Loui iana ~1i i ippi, Tenne ee, Florida, Alabama, Ge r ia uth ar lina orth Carolina and in th Virginia ounti of an mond and orfolk. (d) Thirty-fiv (35) c nt per hour in all oth r states and part thereo f. ECTI N 2. Minimum rat of pay tabli h d hall apply irrep ctive of wh th r an mploy e i compen ated on a time rate, piece work, or oth r ba is.

PAGE 9

91 SECTION 3. Equitable adju tment of compensation of emploY.ees receiving more than the minimum rates of pay herein prescribed shall b made by all employer who have not heretofore made such adj u t.ment under the ational Indu trial Recovery Act1 and all employrs shall within sixty (60) days after approval of this Code, report in full to the Code Authority and the Admini trator for approval concerning uch adjustment provided, however, that in no event hall pre ent rate of pay be reduced. Such report shall indicate wage before and after adjustment and the dates of adjust,ment. SECTION 4. Accounting, clerical, office, service, delivery and sales employees, out ide buyer and watchmen, except office boys and girls, hall be paid not less than fifteen ( 15) dollars per week in any city of over 500 000 population, or in the immediate trade area of such city; nor less than fourteen and one-half (14) dollars per week in any city between 250,000 and 500,000 population, or in the immediate trade area of such city; nor less than fourteen (14) dollars per week in any city or place of between 2,500 and 250,000 population or in the immediate trade area thereof; nor less than twelve ( 12) dollars in places of less than 2,500 population. Office boy and girls shall be paid at least eighty (80) per cent of the above minimum weekly rates but in no event less than twelve (12) dollars per week; provided that the number of such employees does not exceed five (5) per cent of the total employees in any one office. Each office may have at least one such employee. SECTION 5. A person whose earning capacity is limited because of age or phy ical or mental handicap may be employed on light work at a wage below the minimum established by this Code, if the employer obtains from the state authority designated by the United States Department of Labor, a certificate authorizing his employment at such wage as shall be stated in the certificate, but such employees shall not exceed five per cent of any employer's total number of employees. Each employer shall file with the Code Authority a list of all such persons employed by him. SECTION 6. Employers sh.all make payment of all wages due in lawful currency or by negotiable check at regular pay periods, which shall occur at lea t twice each month. These payments shall be exempt from any deductions for pensions, insurance or sick bene fits other than those voluntarily made by employees or required by law. The employer or his agent shall accept no rebates directly or indirectly on any wages . SECTION 7. Female employees performing substantially the same work as male employees shall receive the same rate of pay as male employees . ARTICLE V -GENERAL LABOR PROVISIONS SECTION 1. No person under sixteen ( 1 6) years of age shall be employed in the Industry, nor anyone under eighteen (18) years of age at occupations hazardous in nature or detrimental to health. The Code Authority shall submit to the Administrator for a ppr oval within three (3) months after the effective date of this Code a list o f all such occupations . In any State, an employer shall be deemed to have complied with .this p r ovisio n if he shall have on file a cer t ifica t e or permit duly i ssued b y the authority in such State empow -

PAGE 10

92 ered to issue employment or age certificates or permits, showing that the emplo yee is of the required age. SECTIO 2. It is hereby provided that: (a) Employees shall have the right to organize and bargain col lectively 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 emp loyee 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 hi own choosing; and ( c) Employers hall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment approved or pre cribed by the President. SECTION 3. o provision in this Code shall supersede any State or Federal law which imposes on employers more stringent require nients as to the age of e . mployees, wages, hours of work, or as to safety health, sanitary or general working conditions, or insurance, or fire protection, than are imposed by this Code. SECTION 4. All employers shall post and keep posted official copies of the labor provisions of this Code in conspicuous places accessible to all employees. Every member of the Industry shall comply with all rules and regulations relative to the posting of provisions of Codes of Fair Competition which may from time to time be pre cribed by the Administrator. SECTIO 5. o employer shall reclassify employees or duties of occupations performed or engage in any other subterfuge so as to defeat the purpo es or provisions of the Act or of this Code. SECTION 6. Every employer shall provide for the safety and health of employee during the hours and at the places of their employ m nt. tandards for afety and health shall be submitted by the Code Authority to the Administrator for approval within three (3) months after the effective date of the Code. SECTION 7. o employee shall be discharged by r easo n of making a complaint or giving evidence with respect to an alleged violation of this Code. ECTION 8. o employee now employed at a rate above the minimum hall be di charaed and reemplo ed or replaced at a lower rate for the purpo.:,e of evading the provi ion of this Code. E CTION 9 . The 'ode Authority hall make a u ly of the effects upon th Indu try and upon the mplo ee enaa d therein of the wag an l h ur provision of the Cor:le, having in iew the practiabilit of (1) reclu ing th maximum h ur I ermitte 1 (::...) increa -ina th hourly wao-e rat (3) wh th r an m ncl an 1 orfolk Counti , '. iro-inia hall be inclucl 1 in ParaQ"raph (b) of ction 1 rti 1 IV and ( 4) whether I okane ount \ a hino-ton, and Wa co ounty Orego n hall be :s: er t d from ParaoTaph (a) Sec-tion 1 rti " l I . r port on thi tud t g th r with c n lu ion and r mm nclation f the ode uthorit hall be ubmitt d to th lmini trator for con i leration within thr e (3) month after th eff ctivc date f the od .

PAGE 11

93 ARTICLE VI-ADMINISTRATION SECTION 1. To further effectuate the policies of the Act, a Code Authority is hereby constituted to cooperate with the Administrator in the administration of this Code. This Code Authority shall consist of members who shall be elected in the following manner and hold office for one year : (a) One ( 1) member to be elected by each company of the Industry having 150 000 cubic feet of treating cylinder capacity or more. (b) Four (4) members to be elected by the remaining companies of the Industry on a cubic capacity basis,-one (1) vote for each cubic foot of treating cylinder capacity. (c) Two (2) members to be elected by all of the companies of the Indu try on the basis of one (1) vote for each company of the Industry. SECTION 2. With respect to election and representation on the Code Authority each company, together with its owned and/or controlled sub idiarie or affiliates, shall be treated as one entity. Only one representative of such company or entity shall be eligible to mem bership on the Code Authority at one time. Each such company or entity shall have only one (1) vote when voting as a company as provided in Section 1 of this Article. Companies or entities as used herein are to be considered in relation to the definition of and be synonymous with the term "member of the Industry" in Article II of this Code. SECTION 3. Treating cylinder capacity for each company or entity as defined in the preceding Sectio~ 2 shall be figured within the thirty (30) days immediately preceding an election. This capacity shall be calculated by the following mathematical formula: 3.1416 time inside radius quared times inside length of cylinder. SECTION 4. A quorum of the Code Authority shall consist of six (6) of the eight (8) members thereof, which latter number of members repre ents the Industry as it is now constituted. SECTION 5. At any meeting of the Code Authority if a quorum of six ( 6) is present they may act and vote on any matter properly before them, provided the vote is unanin1ous. SECTION 6. If objection to any matter or action is raised by a member of the Code Authority, then the entire Code Authority must be polled and the affirmative vote of seven (7) out of the total membership of eight (8) will be necessary to pa s any motion. SECTION 7. In the event of a vacancy in the Code Authority, the remaining members, subject to Sections 5 and 6 on voting shall fill such vacancy from the group in which the vacancy occurs before any further business is transacted. SECTION 8 . A temporary Code Authority is hereby set up and shall consi t of the individuals who were na. med in a resolution at a meeting in Chicago on August 21, 1933, to represent the Industry in the negotiations with the National Recovery Administration and to negotiate or the Industry this Code; said resolution was amended by a unanimous vote in a resolution adopted at Washington, D.C., by the Committee acting or the Industry on April 23, 1934. This temporary Code Authority shall serve for a period of ninety (90)

PAGE 12

94 days after the effective date o:f this Code, and until its successors are elected in the manner above provided. SECTION 9. In addition to membership on both the temporary and permanent Code Authorities as herein provided, there may be three (3) members, without vote and without cost to the Industry, to be known as Administration members, to be appointed by the Administrator to serve :for such terms as he may specify. SECTION 10. The temporary Code Authority shall act as an agency for holding the election o:f the permanent Code Authority. It shall cause notice to be sent to all members o:f the Industry who are registered with it or whose names and addresses can be ascertained by r easona ble inquiry, by registered mail ten (10) days preceding the date of the election. Votes shall be cast in the manner above prescribed and votes may be cast either in person, by proxy, or by letter ballot. SECTION 11. Nominations may be made through a nominating committee appointed by the Code Authority, but members of the Industry shall have the right to make nominations from the floor, or vote for any individuals of their choice, by specifying their names in the written proxies or in the letter ballots. Nominations when made shall be made in accord with Section 1, paragraphs (a), (b) and ( c) of this Article. SECTION 12. Any industrial association or group directly or indirectly participating in the selection or activities o:f the Code Authority shall (1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies o:f its articles of association, bylaws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. SECTION 13. In order that the Code Authority shall at all times be truly repre entative of the Industry and in other respects comply with the provisions o:f the Act, the Administrator may prescribe such hearings as he may dee m proper ; and thereafter, if he shall find that the Code Authority is not truly representative or does not in other respects comp l y with the provisions o:f the act, may require an appropriate modifi cation in the method of se l ection of the Code Authority. SECTION 14. Nothing in this Code shall constitut them mbers o:f the Code Authority partners for any purpose. Nor shall any member o:f the Code Authority be liable in any manner to anyone f r any act of any other m ember o:f the Code . Authority. Nor hall any member of the Code Authority exercising reasonable dilig nee in the conduct o:f his duties hereunder, be liable to anyone for any a t or omi ion to act unde r this Code, except :for his own wilful mis feasance or non:feasance . SECTION 15. Any inter sted party shall have the right of complaint to the Code Authority or prop r ag n cy and a pro1npt h ar-1ng and decision thereon. Any interes t ed I arty hull hav the riaht to appeal to the Administrator, under su h rule and r oulation as the Admini trator shall J?rescrib , with r s _pect to any de i ion, rule, regulation, order, or finding mad by the Code Authority.

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95 SECTION 16. If the dmini trator shall determine that an action of the Code Authority or any agency thereof may be unfair or unjust or contrary to the public intere t, the Ad.mini trator may require that uch action be suspended to afford an opportunity for investigation of the merits of uch action and further con ideration by uch Code Authority or agency pending final action which hall not be effective unle the Administrator approves or unle s he shall fail to di approve after thirty (30) day ' notice to him of intention to proceed with such action in its original or modified form. ECTION 17. ubje t to uch rules and regulations as may be issued by the A.dmini trator the Code Authority shall have the following powers and dutie , in addition to those authorize.cl by other provisions of thi Code: (a) To in ure the execution of the provisions of this Code and to provide for the compliance of the Industry with the provisions of the A.ct . (b) To adopt bylaw and rules and regulations for its procedure. ( c) To obtain from members of the Indu try such information and reports as are required for the administration of the Code. In addition to information to be submitted to the Code Authority, all or any of the per on subject to thi Code shall furnish such statistical information a the Administrator may deem nece ary for the purpo e recited in Section 3 (a) of aid Act to such Government agencies as the Administrator may de ignate; nor shall anything in this Code relieve any per on of any exi ting obligation to furnish report to Government agencie . ( d) To use such trade as ociations and other agencies as it deems proper for the carrying out of any of its activities provided for herein, provided that nothing herein shall relieve the Code Authority of its duties or re ponsibilities under this Code and that such trade a ociations and agencies shall at all time be subject to and comply with the provisions hereof. ( e) To make recommendations to the A.dmini trator for the coordination of the admini tration of this Code with such other Codes, if any, a may be related to or affect member: of the Industry. SECTION 1 . It being found nece ary to support the admini tra• tion of this Code and to maintain the tandard of fair competition establi heel by this Code and to effectuate the policy of the Act, the Code Authority is authorized, subject to the approval of the Administrator to incur such reasonable obligation as are neces ary and proper for the foregoing purpo es and to meet such obligations out of fund which may be rai eel a hereinafter provided and which shall be held in tru t for the purpo e of the Code; and to ubmit to the Administrator for his approval subject to such notice and opportunity to be heard a he may deem nece ary (1) an itemized budo-et of its estimated expen e for the foregoing purpose and (2) an equitable basis on which the fund nece sary to upport uch budget shall be contributed by members of the Indu try. After such budget and basi of contribution have been approved by the Administrator, the Code Authority shall determine the amount of such contributions and secure the same as above set forth, and to that end, if necessary, may institute legal proceedings therefor in its own name. The Code Authority shall neither incur nor pay any

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96 obligation in excess of the amount thereof as estimated in Us approved budget, except upon approval of the Administrator; and no subsequent budget shall contain any deficiency item for expenditures in excess of prior budget estimates except those which the Administrator shall have so a pp roved. SECTION 19. Only members of the Industry complying with the Code and contributing to the expenses of its administration, as provided in Section 18 hereof, shall be entitled to participate in the selection of the members of the Code Authority or to receive the benefit of its voluntary activities or to make u s e of any emblem or insignia of the National Recovery Administration. SECTION 20. Each member of the Industry shall pay his or its equitable contribution to the expenses of maintaining the Code Authority pro rated according to treating cylinder capacity. SECTION 21. The Code Authority is authorized to recommend to the Administrator any action or measures deemed advisable, including further fair trade practice provisions to govern members of the Industry in their relations with each other or with other trades or industries; measures for industrial planning, and stabilization of employment; and including modifications of this Code which shall be co me effective as part hereof upon approval by the Administrator after such notice and hearing as he may specify. SECTION 22. The Code Authority is authorized to appoint a Trade Prac tice Committee which shall meet with the Trade Practice Com mittees appointed under such other codes as may be related to the Industry for the purpose of formulating fair trade practices to govern the relationships between production and distribution employers under this Code and under such other Codes to the end that such fair trade practices may be proposed to the Administrator as amendments to this Code and such other Codes. ARTICLE VII-COSTS AND PRICES SECTION 1. The Code Authority shall cause to be formulated method of cost finding and accounting capable of use by all members of the Industry, and shall submit such methods to the Administrator for review . If approved by the Administrator, full information concerning s u ch methods shall b e n1ade available to all members of the Indu try. Thereafte r , each member of the Indu try shall utilize such methods to the extent found practicable. Nothing herein contained shall be con trued to permit the C de uthority any agent thereof, or any member of the Indu try to ugge t uniform addition , percentao-e or differential s or other uniform it ms of c ts which are de igned to bring about arbitrary uniformity of co t RTICLE VIII-TRADE PR. \ TI E R E It hall on titute an act of unfair comp titian for a m mber of th Indu try to : a) r tl off r or mak any pa m nt or all wance f a rebate, r fund mmi ion, er dit un arn l li unt r xces llowanc , wheth r in th f rn1 f m n r th rwi nor hall a m mber of the Indu ry retly ff r or xt n l to any u tamer any pecial

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97 service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. (b) Dis eminate any fal e or misleading information relative to any product or price for any product, within the Industry, of any member of the Industry, or the credit standing or ability of any member thereof to perform any work or manufacture or produce any such product, or to the conditions of employment among the employees of any member thereof. (c) Give, permit to be given, or offer to give, anything of ,alue for the purpo e of influencing or rewarding the action of any em ployee, agent or repre entative of another in relation to the bu i ness of the employer of such employee, the principal of such agent or the represented party, without the knowledge of such employer, principal or party. This provision shall not be construed to prohibit free and general distribution of articles commonly used for advertising except so far as such articles are actually used for com mercial bribery as hereinabove defined. ARTICLE IX-: MoNoPoLms SECTION 1. No provision of this Code shall be interpreted or applied in such manner as to promote or permit monopolies or monopo listic practices; permit or encourage unfair competition; eliminate or oppress small enterprises or discriminate against them. ARTICLE X-MODIFICATION SECTION 1. This Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule or regulation issued under Title I of said Act and specifically, but without limitation, to the right of the President to cance l or modify his approval of this Code or any conditions imposed by him upon his approval thereof. SECTION 2. This Code, except as to provisions required by the Act, may be modified on the basis of experience or changes in circum stances, such modification to be based upon application to the Administrator and such notice and hearing as he shall specify, and to become effective on approval of the President. ARTICLE XI-GENERAL SECTION 1. Violation by any member of this Industry of any of the provisions of this Code or any approved amendment hereof is an unfair method of compet ition. ARTICLE XII-EFFECTIVE DATE SECTION 1. This Code hall become effective on the third Monday after its approval by the President. Approved Code No. 481. Registry 326----02. 0

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