Citation
Code of fair competition for the newsprint industry

Material Information

Title:
Code of fair competition for the newsprint industry as approved on November 17, 1933 by President Roosevelt
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington
Publisher:
U.S. G.P.O.
Publication Date:
Language:
English
Physical Description:
v, 8 p. : ; 23 cm.

Subjects

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

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
Approved Code no. 119.
General Note:
Registry no. 405-01.

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:
004930439 ( ALEPH )
31965573 ( OCLC )

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Forsale by the Superintendent of Documents, W)ashington, D.C. - Price 5 cente


Approved Code No. II9


Registry No. 405--01


NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION

FOR THE


NEWSPRINT INDUSTRY

AS APPROVED ON NOVEMBER 17, 1933
BT
PRESIDENT ROOSEVELT


1. Executive Order
2. Letter of Transmittal
3. Code

UNIV. OF- F~L L


0--

U.S. DEPOsrTOlWITrED hATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933




: : I
i


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 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, PIl.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamiber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, M~rich.: 23~3 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansus City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Loui~sile, Ky'.: 408 Federal Building.
Metmphis. Tenn.: 220 Federal Building.
Mionnapolis, Mlinn.: 213 Federal Building.
New Orleans, La.: Room f225-A. Customhouse.
New York. N.Y.: 734 Custombouse.
Norfolk, Va.: 406 East Plumie Street.
Phliladelphia, Pa.: 933 Commercial Trust Building.
Pittsburghb. Pa.: Chaimber of Commerce Building.
Portland, Oreg.: 215 New Post Offce Building.
St. Louis, M\o.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Battle, Wash.: 800 Federal Building.














EXECUTIVE ORDER


CODE OF FAIR COMPETITIONS FOR THE NEW~SPRINT 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 my approval of a Code of
Fair Comlpetition of the N-ewsprint Industry, and hearings havinga
been held thereon and thle Administrator having rendered his report
containing an analysis of the said Code of Fair Ciomlpetition together
with his recommendations and findings with respect thereto, and the
Administrator having found thant the said Code of Fair Competition
complies in all respects writh the pertinlent provisions of T\itle I of
said Act and that the requirements of clauses (1) and (2) of sub~sec-
tion (a) of Section 3 of the said Act have been met:
NOW~, THEREFORE, I, Frankin D. Roosevelt, President of the
United States, pursuant to the autority rested in me by TCitle I of
the National I[ndustrial ]Recovery Act, apporoed June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Aidministrato and ~do order that the said Code of
Fair Competition be and .it is hereby approved, howeverr, feeling
that thle minimum wage for this industry should be not less than
forty (40) cents per hour, my order of approval is subject, to the
following condition:
That within 90 days from the effective date of this Code the
Administrator hold such. further hearing upon such :notice as he,
in his discretion, shall fix for the purpose of dfeterminig the adequ~lacy
of the minimum wages established in, said Code, after which his
report and recommendation shall be submitted to mne for further order
which order shall have the effect of a condition to my approval of
this Code.
FRAI~NKLIN D. ROO.SEVCELT.
THE TVHITE Ho0USE,
November 17, 1933.
Approval recommended :
Hocu S. JOHNSON,
A dmlin isftrator.


21623~"- 244-34--33-3













To PREEE~rOCTOBER 26, 1933.
The Whirtc Houlse.
SmR: This is a report of the hearing on the Code of Fair Competi-
tion for the Newsprint Industry in the United States, conducted in
Washington on Septem~ber 6, 19~33, in accordance wfith the- provisions
of Title I of the National Industrial Recovery Act.

WORKING HOURS

This Code provides for a standard 40-hour week for all but a
small portion of the employees in the Industry. In order to provide
flexibility necessary to meet unusual conditions, such as variation in
water supply, etc., provision is made for a 40-hour week averaged
over a 13-week period with a limitation on day workers of 48 hours
in a single week with time and one third for hours worked in excess
of 8 in a single day.
No such provision is made for tour workers who desire to be free
to exchange shifts. Provision is also made for additional hours for
them to meet. situantions where the: work requires the help of men
from an off-duty shift to change wires and wash and clean the ma-
chines after a run. Such work is too small in amount and too irregu-
lar to justify employment of an additional shift.
Employees not engaged directly in production, of whom there
are only a few in each~ plant., are on a 42-hour basis averaged over a,
4-week period. Watchmen may~ work 56 hours per week, and oilice
employees 40 hours per week averaged over a year, but. not more
than an average of 48 hours per week in any quarter. In emergency
cases, restrictions are removed for employees engaged in repair and
maintenance work. Regular reports of hours worked are required.

WAGFS

The basic miinimum wage rate for Imechanical workers is 38 cents
per hour. Provision is also made for a 56 lower hourly wage for
women, but it is expressly provided that men and women doing the
samne work shall receive the same pay, and that the Code Aut~hority
shall file with thie Administrator a description of all occupations in
which women are employed.

ECONOMIIC EFFECT OF THE CODE

The Newsprint Industry is in a very serious condition. Consump-
tion has fallen from 3,800,000 tons in 1929 to 2,800,000 tons in 1932.
The capacity of the mills in the United States is about 1,800,000 tons.
In 1929 they produced 1,4100,000 tons and in 1932 1,008,000 tons.
The price has fallen from $65 per ton delivered in 1929 to $40 in
1933.


(IV)









It is doubtful whether even the most efficient mills can produce
paper at this price in either C7anada or the UCnited States. In1 fact,
five out of eight of the largest producers in the UPnited States are
in receivership, as well as practically all of the Canadian mills,
which are not supported by their affiliates.
As newsprint is importedl duty free the United States and ('anat-
dian branches of the Industry are practically one fromt a competi-
tive standpoint., and consequently the manufacturers in the United
States can obtain no reimbursement through increased prices for any
additional costs which may be imposed upon them by this Code.
The condition of the Newsprint `Industry has a depressing and
disturbing effect on the general paper industry, both because news-
print mills can and do shift over to other types of paper, and because
the price of newsprint has a pronounced influence onl the price of
other paper.
Newsprint contracts are generally made for the calendar year and
offerings for 1934 are now being made. Some offers as low as $30
to $35 per ton, delivered, have been made by Canadian. mills. The
paper Industry as a whole is in something of a panic for fear that
a lower price for newsprint will be established and that this will
result in the inability of thle Industry to meet its increased~ costs
under the National Industrial Recovery Act.
In spite of this situation, the NewTsprint Industry has shortened its
working hours from 48 to 40 per week and increased its wage rates
substantially by this Code. Employment will be increased only
about 10r9 by thisi change because the avelnrae actual work week has
been only slightly over 40 hours. The real problem of the NewTspr~int
Industry is not to increase employment, but to mtainltain employment
at its present manufacture. I~t is estimated, however, that the total
increase in p~ay rolls in, the Industry as a result of the Codet will be
about 15%~c to eO09;.
Under the circumstances, I am of the opinion that the Industry has
offered thle mnaximum of which it is capable and that the Code is
satisfactory in all other respects.
FINDINGS

The Achnlinistratorr finds that:
(a) Thle Clode as r~ec~ommnend ed- complies in all respects with the
pertinent provisions of Title I of the A~ct, inlcludling without limrita-
tion, subsection (a) of Sec~tion 7 an~d sutbsectionl (b) of Section 10
thereof ; anid that
(b) The applic~ant group imposes no inequitable restrictions on
admission to membership thelrein and is truly representative of the
Paper and Pulp IndustryS; and that
(c) The Codle as recommended is not dersigned to promote mono-
polies or to eliminate or oppress small enterprises and will not operate
to discriminate against them, and will tend to effectuante the policy
of Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be appro~edl.
Respect fully submiitted.
HUon S. JoaNSON,
AdmCI1in jtr~frator.












































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CODE OF FAIR COMPETITION FOR THIE NEWSPRINT
INDUSTRY

To effectuate the policies of Title I of the ~National Industrial
Recovery Act the following is hereby established as the Code of F'air
Competition for the above industry, andl shall be binding on every
member thereof.
AnnIcLE I-DEvISrnowNs

1. The following words are used in this Codet with the meanings
herein set forth:
Newsprint "-The word "' newsprint "! is used in this Code wFithi
the same meaning with which the words" standard newsprint paper "
are used in paragraph 1672 of the Tariff Act of 1922, and in para-
gra~ph 1772~ of the Tariff Act of 1930.
Industry "-The manufacture in the United States from wood
pulp and/'or other stock of newsprint and all other papers, except
rotogaravure paper, when such other papers are mranufactured and
sold for regular use in the making of dailys newspapers.
Member "--A natural person, partnershiip, association, corpora-
tion, trust, trustee, trustee in bankrup~tcy, or receiver engaged in,
such industry.
"'Act "-Title I of the National Industrial Recovery Act.
"'Admninistrator "--The National Recoveryr Adm~inistrator.
"' The Association "-The Association of Newsprint M~anufactur~ers
of the United States.

ARTICLE II--OnaCx x xz.
1. The Advisory Comlmittee of the A~ssociat~ion is hereby_ desig-
nated as the agency for administering this Code, and is hereby con-
st~ituted and hereinafter referred to as the Code Authority." The
Administrator mayL designate three (3) persons as additional mem-
bers of such Code Authority who shall have no vote, but in all other
respects shall be members thereof.
2. Th~e expenses of administering this Code shall be borne pro rata
by all members of the Industry who accept the benefits of the Code
Authority or otherwise assent to this Code, in accordance with a
formula to be adopted by the Code Authority. The Association shall
be responsible for the payment of such expenses.

ARTICLE III--HoIRns o L.4son

1. No paper machine shall be operated in excess of 144 hours in
any week.
2. Employees in the industry shall not be required or permitted
to work hours in excess of the limits prescribed in the following
schedule :









Scheadule of wuork~ing hlou~re

(a) WTatchmen: 8 hours in any one day and 56 hours in any one
week.
(b) Chauffeurs, truckmen, switching crews, engineers, firemen and
electric and hydroelectric operators and filter-plant employees: 168
hours in any period of four consecutive weeks, but no more than 10
hours in any one day and 48 hours in any one week.
(c) Tour-workers in continuous process operations: 8 hours in
any one day and an average of 40 hours per week in any period of 13
consecutive weeks;5 provided, however, that additional ours may be
w~orkred--
(1) To avoid a shut-dlown due to the temporary absence of a relief
worker; (2L) In changing wires and machine clothing; and -(3) In
clean-ups, wash-ups, and ordinary repairs and adjustments in cases
where a machine is shut-down for a period of not less than eight
consecutive hours.
(d) All other laborers, mechanical workers, or artisans employed
in any plant, mill, or factory or on wFork connected with the opera-
tion of any plant, mill, or factory: An average of not more than 40
hours per week in any period of 13 consecutive weeks, but not more
than 48 hours mn any one week, provided, however, that time worked
in excess of eigrht hours in-any one day sihall beP paid for as not less
than time and one third.
(e) Executives and their personal secr~etaries and other employees
regularly engaged in a superv~isory capacity receiving $~35.00 or more
per week and outside salesmen: No lim~itation.
(f) All other employees: An average of 40 hours per week in any
calendar year and an average of not to exceed 48 hours per week
in any period of 13 consecutive weeks. Provlided, however, that no
limitation on hours of wor~k contained in said schedule shall apply
to employees of any class when engaged in emerlgency repair or
emnergency maintenance worke involving break-dowvns or protection of
life or proper~ty.
3. At such interv\als as the Code Authiority shall prescribe, every
member shall report to the Code AuthorityS (a) t.he number of man-
hours w-orked under subdivisions c () nd c (2) of said schedule
and. the ratio w~hichI Said mnan-hours bar to the total number of
man-hours of labor und-er subdivision c: and (b) shall furnish the
Code Authority such iniformnation as it may requiire in order to
enable it to determine wheth~er the limitations contained in said
schedule have been exceedled.
4. Nao employee shall be permittedl to work for more than one
member of the Indlust~ry an aggregate number of hout-s in excess of
the number prescribed in said schedule.

ArrlICLE IV-TVAGES
1. The minimum rate of wage of any laborer, mechanical worker,
or artisan~ employed in any plant, mill, or factory or on work con-
nected with the operation of any such plant, mill, or factory shall
be as follows:
Male labor, 38 cents per hour.
Female labor, 33 cents pe'r hour.








Provided, however, that where a state law provides a higher mini-
mum wage than is provided in this Code, no person employed within
such state shall be paid a wage below that required by such state
law.
2. Piece workers shaUl be paid at rates which will yield a work-er
for an hour's work not less than the minimum grants prescribed.
3. The minimum rates of wages for all other employees except
commission salesmen shall be as follows: Not less than $1,5 per
week in any city of over 500,000 population, nor less than $14.50
per week in any city between 250,000 and 500,000 population, nor
less than $14 per week in any city between 2,500 andc 250,000 popu-
lation, nor less than $12 per week in towns of less thanl 2,500
population.
4. The minimum wages hereby prescribed shall not inl any way
be considered as a discrimination by reason of sex andl where, in, any
case, women do substantially the same work; or perform substran-
tially the same duties under the same conditions as mien, they shall
receive the same rate of wages as men receive for doing such workr
or performing such duties. The Code Authority shaU prepare and
file with t~he Administrator within ninety days after th~e effective
date of this Code, a description of all occupations in the industry
in which women are employed.
5. The wage rates of all employees receiving mlore than the mnini-
mum rates herein prescribed shall be reviewed Andi such adljustmlents,
if any, made therein as are equitable in the light of nil t~he circum-
stances. Within ninety (90) days after the effective date hereof, the
Code Authority shall report to the Administrator the nation taken
by all members of the industry under thiis section.
6. A person whose earning capacity is limited because of phyi4sical
or mental deficiency, age, or other infirmity, may be emplo~yedd on
light work at not less than eighty (80) percent of thle minimum wage
prescribed in Section 1 hereof, if the State Authority dlesigrnated
by the United States Department of Labor shall have issued a cer-
tificate authorizing the employment of such person on such basis,
provided, however, that. the total number of such employees in ainy
one plant shall not exceed three (3) percent of the total e~mployees
in such plant. So much of this Section as requires thle issuance
of such a certificate shaUl not t~ake effect until sixty (60 days after
the effective date of this Code.

ARTICLE V GENiERL LABOR PROVISYIONS

1. No person under sixteen (16) years of age shall b~e emp~loyedz in
the industry nor anyone under eighteen (18) years of age at opera-
tions or occupations hazardous in nature or detrime~ntal to health.
The Code Authority shall submit to the Administrator within sixty
(60) days after the effective date of this Code a list of such occupa-
tions. In any State an employer shall be deemed to have complied
with this provision if he shall have on file a cer~tifcate or permit duly
issued by the authority in such Stat.e empowered to issue employ-
ment or age certificates or permits showing that. the emnployee is of the
required age.
2. Employees shall have the right to organize and bargain collec-
tively 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
collect ve ba gaining or other mutual aid or protection. No employee
and no one seeking employment shall be required as a condition of
employment to 10om any company union or to refrain from joining,
organizing, or assisting a labor organization of his own choosing.
Employers shall comply with the maximum hours of labor, minimum
rates of pay, and other conditions of employment approved or
prescribed by the President.
3. Labor agreements now in force between members and their em-
ployees shall be affected only by such provisions of this Code as may
prescribe higher wages and shorter hours than are provided for in
such agreements.
4. Employrers shall not reclassify employees or duties of occupa-
tions per~formled by employees so as to defeat the purposes of the Act.
5. All employees shall post full copies of this Code in conspicuous
places accessible to employees.
6. Standards for safety and health shall be submitted by the Code
Authlority to the Administrator within six (6) months after the
effective date! of this Code.
7'. The Code Authority shall make a study of conditions in t~he
Industry to determine th~e feasibility of the adoption of a shorter
working day and shall, within three (3) months after the effective
date oftlhis Code, make a report of1 its findings to the Administrator.
The Code Ajuthority shall also submlit to the Administrator within
sixz months after the effective date of this Code a plan for the sta-
bilization and regularization of employment. The Code Authority
may also submit recommendations to thle Admninistrator for the es-
tablishment of rules relative to workr on Sundays and holidays, to a
weekly day of rest, and to overtime w~ork generally and rates of
wages therefore. Such recomtmendati ons, wlheni approved by the Ad-
ministrator, shall have the same force andl effTect as other provisions
of this Code.
ARTICLE VI:-AccoUISTN wo

1. The Code Authority shall, as soon as practicable, propose a
standard method of necounting and costing for the industry and sub-
~mit the! same to the Administrator. When it shall have been ap-
proved by the Adlministrator, every member shall use an accounting
and costmng systemn which conforms to the principles of, and is at
least as detailed and complete as, such standard method.

ARICILE V~II[-R'EPORTs ; STAnIsTes
1. Eacht member shall prepare annd file wvith the Clode Auzthority
at such time and in such manner as it may prescribe, statistics
plant capacity, production, sales in units and dollars, stocks on
hand, number of employees, wage rates, employee earnings, hours of
work, and such other data or information as the Code Authority or
the Administrator may from time to time require, and in addition,
shall. furnish government ageneles such statistical information as the









Administrator may deem necessary for the purposes recited in See-
tion 3 (a) of the Act.
2. Except as otherwise provided in the Act, all statistics, data, and
information filed with or required by the Code Authority in accord-
ance with the provisions of Section 1 hereof shall be confidential
and the statistics, data, and information of one member shall not be
revealed to another member. No such data or information shall be
published except in combination with other similar data and in such
a manner as to avoid the disclosure of confidential information.
3. The Code Authority shall manke and file with the Administ~rator
such reports as the Adniinistrator may from time to time require.
ArrlICLE VIII-V~IOLArroNs

1. The failure on the part of any member of this industry to com-
P ly with the provisions of this C~ode or to perform any obligation
unposed on him thereby shall constitute a violaion of the Codle.
2.The Code Aulthorityv hall investigate alleged violations of this
Code and make reports thereon to the Administrator.

ARTICLE IX--GENERAL PRov'IsIo:Ns

1. This Code may, with the approval of the President, be amnendled
except as to provisions required to be included therein by thle Act.
2. If any member of the industry is engaged in any other industry,
the provisions of this Code shall apply to and affect onlyv that part
of his business which is included in the industry.
3. The Code Auithority may confer with the members of the in-
dustry and the consumers of its product in respect of the stabiliza-
tion of the industry and the elimination of unfair practices and de-
structive competitive prices, and may formulate and submit to the
Administrator its recommendations to that end. Such recommendat-
tions when approved by the Administrator shall have the same~ force
and effect as any other provisions of this C'ode.
4. The Code Authority may secure current information concerning
the competition in domestic markets of imported newsprint, and if it
shall find that such newsprint is being imported into the United
States in substantial quantities or increasing ratio to domestic p~ro-
duction and on such terms or under such conditions as to render in-
effective or seriously endanger the maintenance of thiis C~ode, it may
complain to the President pursuant to the provisions of Section 3 (e)
of the National Industrial Recoveryr Act and petition for suitable
restrictions on the importation of such newspr~int.
5. In order to maintain at. all times an adequate domestic supply
of raw material for the Industry, it is the declared purpose of the
Industry to conserve forest resources and bring about the us-
tained production thereof. The Code Auth~ority shall cooperate
with the Secretary of Agriculture and other National and State
Officials and Agencies and with thle Code Authorities of other
Industries in planning such practical measures as may be necessary
to accomplish such declared purpose, and shall, upon the request
of the Secretary of Agricultur~e, join with the Lumber and Timnber








Products Industries in any conference which may be held pursuxant
to the provisions of Article XC of the Code of Fair Competition
of the Lumiber and Timber Products Industries, approved by the
President on August 19, 1933.
6. The trade standards and customs covered by the appendix
hereto attached are made a part hereof, and any deviation fromt
them is a violation of the Code.
7. This Clode and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of Section 10 (b) of the National Industrial Recovery Act,
from time to time to cancel or modify any order, approval, license,
rule, or regulation, issued under said Act, and specifically to the
right of th~e President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
8. This Code shall become effective on the second Monday after
its approval by the President.












APPENDIX


TRADE CUSTOMlS AND TRADE PRACTICES

1. Newsprint, other than tinted news. is white, cream white or blue
white, and mild variations thereof.
2. Every manufacturer shall deliver as newsprint paper, as nearly
as pra~cticable, paper of an average basis weight of 32 lb~s. F'ive
(5) percent over or under specified base of weight shall be con-
sidered good delivery for individual rolls. Orders for heavier
weight. bases (over 241 x 36-32 lbs. to 500O sheets) shall be furnished
at no price concession. Newrsprint shall not be sold -on a production
basis.
3. No newsprint. shall be designated aIs C'ulled and sold at a
reduced price.
4. The billing weight of roll newsprint shall be the gross weight
including paper and wrappers, less only the weight of cores i
returnable cores are. used. Sheet newsprint shall be billed at the
ordered weight unless there is a shortage in excess of 21/2 percent,
in which event, paper shall be billed at the actual scale weight.
5. Terms--net cash United States Funds, 30 days from date of
shipment; or from date of withdrawal from warehouse in the case
of water shipments; or 15th of month for shipments made during
preceding month or a7ny other mutually agr~eeable alrrangement
which contemplates an approximate thirty day cash settlement. 665/o
interest shall be paid on all amounts remaining unpaid on due dates.
Time of payment may be ext~endled beyond thirty dlays, provided
interest at the rate of 6%1 per annual is charged after thirty days
from date of shipment, or from date of withdrawal from warehouse
in the case of water shipments.
6. Ret~urnable cores, either paper or ir~on, shall be charged to th~e
purchaser at 2 cents per running inch and shall be returned
promptly, freight prepaid, to the manufacturer. Cores shall be
credited to the purchaser at the invoiced price when a prepaid bill
of lading showing the mu~nber and sizes of cores returned to mill of
mannufacturer is received by the manufacturer. Nonreturnable cores
shall be included in invoice price of paper and shall not be
returnable.
7. No allowance shall be made for waste, dlamage, or paper left
on cores. In case of claim of any nature ap~plying on anly shipmnent,
t.he manufacturer shall be notified immediately, but no claim shall
be allowed for consequential damage.
8. Miscellaneous Differentials: For nlewsprint in sheets the differ-
entials shall not be less than those stated inl the foll.owinr~g schedule:
TWhite Colored
For sheets 150 sq. In., and larger ... _-- -,,-,-per ton__ 5.00 10, 00
For sheets 72 sq. in, to 149( sq. in__-_- __ _-- ___do____ 10.00 15. 00
For sheets 36 sq. in, to TI sq. in __ ..do__---rl__-- 15.00 20. 00








These differentials shall be with relation to the price of white
newsprint in rolls.
Two dollars per ton shall be charged for skid loads if more than
3,000 lbs.; $3.00 per ton on quantities from 3,000 lbs. to 2,000 lbs.;
and $5.00 per tonl for quantities of 2,000 lbs. and under.
Press trimmning Fhall be charged for, over the sheet price, as
.follows :
$1.00 per ton for one side.
$2.00 per ton for two sides.
$3.00 per ton for either three or four sides.
If sheet news is packed1 in ske~leton frames, this charge shall be
$5.00 per ton over the sheet price.
9. T2he foregoing trade customs and practices with regpe~ct to news-
print shall also apply to all other products of the industry.



























































































































































































1




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Full Text

PAGE 1

Approved Code No. 119 Registry No. 405-01 NATIONAL RECOVERY ADMINISTRATION C ODE OF FAIR COMPETITION FOR THE NEWSPRINT INDUSTRY AS APPROVED ON NOVEMBER 17, 1933 BY PRESIDENT ROOSEVELT WE DO OUR PART / 1. Executive Order 2. Letter of Transmittal 3. Code f Au O ~.:..:-,. ----U.1. DEP09fTO GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 For sale by the Superintendent of Documents, Washington, D.C. ---Price 5 cents V

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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. : 2213 First National Bank Building. Hous ton , Tex. : Chamber of Commerce Building. Indianapolis, Ind. : Chambr of Commerce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas Citi, Mo.: 1028 B altimore Avenue. Los Angeles, Calif.: 1163 South Broadway. Louisv-ille, 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 Cmrtomhouse. Norfolk, Va.: 406 East Plume Street. Philadelphia, Pa. : 933 Commercial Trust Building. Pittsburgh, Pa. : Chamber of Commerce Building. Portland, Oreg. : 215 New Post Office Building. St. Loui s, Mo. : 506 Olive Street. San Francisco, Calif. : 310 Customhouse. Seattle, Wash.: 809 Federal Building. Cll)

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EXECUTIVE ORDER CODE OF FAIR COMPETITION FOR THE N EWSPilINT INDUSTRY An application having been duly rn. ade, pursuant to and in full compliance with th provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for my approval of a Code of Fair Competition of the Newsprint Industry, and hearings having been held thereon and the Administrator having rendered his report containing an analysis of the said Code of Fair Competition together with his 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, however, feeling that the minimum wage for this industry should be not less than forty ( 40) cents per hour, my order of approval is subject to the following condition : That within 90 days from the effective date of this Code the Administrator hold such further hearing upon such notice as he, in his discretion, shall fix for the purpose of determining the adequacy of the minimum wages established in said Code, after which his report and recommendation shall be subnutted to me for further order which order shall have the effoct of a condition to my approval of this Code. THE WHITE HousE, N 01Jember 17, 1933. Approval recommended: HUGH s. JOHNSON, Administrator. 216~3-244-34--33 FRANKLIN D. ROOSEVELT. (Ill)

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THE PRESIDENT, OCTOBER 26, 1933. The White House. Sm: This is a report of the hearing on the Code of Fair Competition for the Newsprint Industry in the United States, conducted in Washington on September 6, 1933, in accordance with the provisions of Title I of the National Industrial Recovery Act. WORKING HOURS This Code provides for a standard 40-hour week for all but a small portion of the employees in the Industry. In order to provide flexibility necessary to meet unusual conditions, such as variation in water supply, etc., provision is made for a 40-hour week averaged over a 13-week period with a limitation on day workers of 48 hours in a single week with time and one third for hours worked in excess of 8 in a s ingle day. No such provision is made :for tour workers who desire to be free to exchange sh ifts. Provision is also made for additional hours for them to meet situations where the work requires the help of men from an off-duty shift to change wires and wash and clean the ma chines after a run. Such work is too small in amount and too irregular to justify employment of an additional shift. Employees not engage d directly in production, of whom there are only a few in each plant, are on a 42-hour basis averaged over a 4-week period. vVatchmen may work 56 hours per week, and office employees 40 hours per week averaged over a year, but not more than an average of 48 hours per week in any quarter. In emergency cases, restrictions are removed for employees engaged in repair and maintenance work. Regular reports of hours worked are required. WAGFS The bas ic minimum wage rate for mechanical workers is 38 cents per hour. Provision is also made for a 5 lower hourly wage for women, but it is expressly provided that men and women doing the same work shall receive the same pay, and that the Code Authority shall file with the Administrator a description of all occup ations in which women are employed. ECONOMIC EFFECT OF THE CODE The Newsprint Industry is in a very serious condition. Consump tion has fallen from 3,800,000 tons in 1929 to 2,800,000 tons in 1932. The capacity of the mills in the United States is about 1,800,000 tons. In 1929 they produced 1,400,000 tons and in 1932 1,00 ,000 tons. The price has fallen from $65 per ton delivered in 1929 to $40 in 1933. (IV)

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V It is doubtful whether even the most efficient mills can produce paper at this price in eithe r Canada or the United States. In fact, five out of eight of the largest producers in the United States are in r e ceivership, as well as practically all of the Canadian mills, which are not supported by their affiliates. As n e w sprint is imported duty free the Unite d Sta t e s and Canadian branc hes of the Industry are practically one from a competitive standpoint, and consequently the manufacturers in the United States can obtain no reimbursement through increased prices for any additional costs which ;znay be impos ed upon them by this Code. The condition of the N ewsprint Industry has a depres sing and disturbing effect on the general paper industry, both becau s e newsprint mills can and do shift over to other types of paper, and because the price of new sprint has a pronounc ed influen ce on the price of other paper. Newsprint contrac ts are generally made for the c al endar year and offerings for 1934 are now being made. Some offers a s low a s $30 to $35 per ton, delivered, have been made by Canadian mills . The paper Industry as a whole is in something of a panic for fear that a lower price for newsprint will be established and that this will result in the inability of the Industry to meet its inc rea s ed costs under the National Industrial Recovery A ct. In spite of this situation, the Newsprint Industry has shortened its working hours from 48 to 40 per week and increased its wage rates substantially by this Code. Employment will b e inc reased only a.bout 10% by this change becau s e the average actual work w ee k has been only slightly over 40 hours . The real proble m of the New sprint Industry i not to increase employment, but to maintain employment at its pre ent manufacture. It i s estima ted, howe v er, that the total increase in pay rolls in the Industry as a r esult of the Cod e will be about 15% to 20% . Under the circumstanc es , I am of the o pinion tha t the Industry has offered the maximum of which it i s capable and that the Code is satisfactory in all other r e p e cts. FINDI:XGS The Administrator find that: (a) The Code a s recommende d complies in all r es pect s with the pertinent prov i s i o n s o f Title I of the A ct, including without limitation, subs e ction ( a ) of S ection 7 and s ub sec ti o n (b) of Section 10 thereof; and that (b) The applicant group im pos e s no inequitabl e re strictions on admiss ion to memb e r ship the r ein and i s truly r epresentative of the Pape r and Pulp Industry; and that ( c ) . The Code as recomm e n de d i s n o t desi g n e d to promo t e mono poli~s 01: t~ eliminat~ or oppre s sm all. enterprises and will not oper ate to d1scnmmate agains t them, and will t end to eff ectuate the policy of Title I of the National Industrial R ecove r y A ct. It i s recomm ende d, the r e f o re, that this C o de~b e a p p ro-ved. Res pe ctfully submitte d . HUGH S. JOH NSON' Administra tor.

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Digitized by the Internet Archive in 2011 with funding from University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation http://www.archive.org/details/codeoffaircompet5853unit

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CODE OF FAffi COMPETITION FOR THE NEWSPRINT INDUSTRY To effectuate the policies of Title I of the National Industrial Reco,ery Act the following is hereby established as the Code of Fair Competition for the above industry, and shall be binding on every member thereof. ARTICLE I-DEFI~ITIONS 1. The following words are used in this Code with the meanings herein set forth : " Newsprint "-The word " new sprint " is used in this Code with the same meaning with which the words" standard newsprint paper " are used in paragraph 1672 of the Tariff Act of 1922 , and in paragraph 1772 of the Tariff Act of 1930. "Industry "-The manufacture in the United States from wood pulp and/or other stock of newsprint and all other papers, except rotogravure paper, when such other pap~rs are manufactured and sold for regular use in the making of daily newspapers. "Member "-A natural person, partnership, association, corpora tion, trust, trustee, trustee in bankruptcy, or receiver engaged in such industry. > "Act "-Title I of the National Industrial Recovery Act. "Administrator "-The National Recovery Administrator. "The Association "-The Association of Newsprint Manufacturers of the United States. ARTICLE II-OnGANIZATION 1. The Advisory Committee of the Association is hereby designated as the agency for administering this Code, and is hereby constituted and hereinafter referred to as the "Code Authority." The Administrator may designate three (3) persons as additional mem bers of such Code Authority who shall have no vote , but in all other respects shall be members thereof. 2. The expenses of administering this Code shall be borne pro rata by all members of the Industry who accept the benefits of the Code Authority or otherwise assent to this Code, in accordance with a formula to be ~dopted by the Code Authority. The Association shall be responsible for the payment of such expenses. ARTICLE III-HouRs OF LABOR 1. No pa p er machine shall be operated in excess of 144 hours in any week. 2. Employees in the industry shall not be required or permitted to work hours in excess of the limits prescribed in the following schedule: (1)

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2 Schedule of working hours (a) ,v atchmen: 8 hours in any one day and 56 hours in any one week. ( b) Chauffeurs, truckmen, switching crews, engineers, firemen and electric and hydroelectric operators and filter-plant employees: 168 hours in any period of four consecutive weeks, but no more than 10 hours in any one day and 48 hours in any one week. ( c) Tour-workers in continuous process operations: 8 hours in any one day and an average of 40 hours per week in any period of 13 consecutive weeks; provided, however, that additional hours may be worked (1) To avoid a shut-down due to the temporary absence of a relief worker; (2) In changing wires and machine clothing; and (3) In clean-ups, wash-ups, and ordinary repairs and adjustments in cases . where a machine is shut-down for a period of not less than eight consecutive hours. (d) All other laborers, mechanical workers, or artisans employed in any plant, mill, or factory or on work connected with the operation of any plant, mill, or factory: An average of not more than 40 hours per week in any period of 13 consecutive weeks, but not more than 48 hours in any one week, provided, however, that time worked in excess of eight hours in-any one day shall be paid for as not less than time and one third. ( e) Executives and their personal secretaries and other employees regularly engaged in a supervisory capacity receiving $35.00 or more per week and outside salesmen: No limitation. (f) All other emp loy ees: An average of 40 hours per week in any calendar year and an average of not to exceed 48 hours per week in any period o:f 13 consecutive weeks. Provided, however, that no limitation on hours of work contained in said schedule shall apply to employees of any class when engaged in emergency repair or emergency maintenance work involving break-downs or protection of life or property. 3. At such intervals as the Code Authority shall prescribe, every member shall report to the Code Authority (a) the number of manhours worked under subdivisions c (1) and c (2) of said schedule and the ratio which said man-hours bear to the total number of man-hours of labor under subdivision c; and (b) shall furnish the Code Authority such information as it may require in order to enable it to determine whether the limitations contained in said schedule have been exceeded. 4. No employee shall be permitted to work for more than one member of the Industry an aggregate number of hours in excess of the number prescribed in said schedule. ARTICLE IV-WAGES 1. The minimum rate of wage of any laborer, mechanical worker, or artisan employed in any plant, mill, or factory or on work con nected with the operation of any such plant, mill, or factory shall be as follows : Male labor, 38 cents per hour. Female labor, 33 cents per hour.

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3 Provided, however, that where a state law provides a higher minimum wage than is provided in this Code no person employed within such state shall be paid a wage below that required by such state law. 2. Piece workers shall be paid at rate which will J ield a worker for an hour's work not less than the minimum rates prescribed. 3. The minimum rates of wages for all other employees except commission salesmen shall be as follows: Not less than $15 per week in any city of over 500,000 population, nor le ss than $14.50 per week in any city betw een 250,000 and 500,000 population, nor less than $14 per week in any city between 2,500 and 250 000 population, nor less than $12 per week in towns of less than 2,500 population. 4. The minimum wages hereby prescribed shall not in any way be considered as a discrimination by reason of ex and where, in any case, women do substantially the same work or perform substantially the same duties under the same conditions as men they shall receive the same rate of wages as men receive for doing u c h work or performing such duties. The Code Authority shall prepare and file with the Administrator within ninety days after the effective date of this Code, a description of all occupation in the indu try in which women are employed. 5. The wage rates of all employees receiving more than the minimum rates herein prescribed shall be reviewed and s uch adjustme nts, if any, made therein as are equitable in the light of all the c ircum stances. Within ninety (90) days after the effective date hereof, the Code Authority shall report to the Administrator the a tion take n by all members of the industry under this section. 6. A person whose earning capacity is limited be ca use of phy ical or mental deficiency, age, or other infirmity may be employed on light work at not less than eighty (80) percent of the minimum wage prescribed in Section 1 hereof, if the State Authority designated by the United States Department of Labor shall have i s ued a cer tificate authorizing the employment of such person on such ba. is, provided, however, that the total number of suc.h employees in any one plant shall not exceed three (3) percent of the total employees in such plant. So much of thi Section as require the i uance of such a certificate shall not take effect until sixty ( 60 days after the effective date of this Code. ARTICLE V-GENERAL LABOR PROVISIONS 1. No person under sixteen (16) years of age hall be emplo yed in the industry nor anyone under eighteen (18) years of age at opera tions or occupations hazardous in nature or detrimental to health. The Code Authority shall submit to the Administrator within sixty (60) days after the effective date of this Code a list of such occupa tions. In any State an employer shall be deemed to have complied with this provision if he shall have on file a certificate or permit duly issued by the authority in such State empowered to i ss ue employment or age certificates or permits showing that the employee is of the required age. 2. Employee shall haYe the right to organize and bargain collectively through representatives of their own choosing, and shall be

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4 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. 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. Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment approved or prescribed by the President. 3. Labor agreements now in force between members and their em ployees shall be affected only by such provisions of this Code as may prescribe higher wages and shorter hours than are provided for in such agreements. 4. Employers shall not reclassify employees or duties of occupa tions performed by employees so as to defeat the purposes of the Act. 5. All employees shall post full copies of this Code in conspicuous places accessible to employees. 6. Standards for safety and health shall be submitted by the Code Authority to the Administrator within six (6) months after the rffective date of this Code. 7. The Code Authority shall make a study of conditions in the Industry to determine the feasibility of the adoption of a shorter working day and shall, within three (3) months after the effective date of this Code, make a report of its findings to the Administrator. The Code Authority shall also submit to the Administrator within six months aft-er the effective date of this Code a plan for the stabilization and regularization of employment. The Code Authority may also submit recommendations to the Administrator for the establishment of rules relative to work on Sundays and holidays, to a weekly day of rest, and to overtime work generally and rates of wages therefor. Such recommendations, when approved by the Administrator, shall have the same force and effect as other provisions of this Code. ARTICLE VI-AccouxTING 1. The Code Authority shall, as soon as practicable, propose a standard method of accounting and costing for the industry and submit the same to the Administrator. When it shall have been approved by the Administrator, every member shall use an accounting and costing system which conforms to the principles of, and is at least as detailed and complete as, such standard method. ARTICLE VII-REPORTS; STATISTICS 1. Each member shall prepare and file with the Code Authority at such time and in such manner as it may prescribe, statistics of plant capacity, production, sales in units and dollars, stocks on hand, number of employees, wage rates, employee earnings, hours of work, and such other data or information as the Code Authority or the Administrator may from time to time require, and in addition, shall furnish government agencie s s uch statistical information as the

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5 Administrator may deem necessary for the purposes recited in Sec tion 3 (a) of the Act. 2. Except as otherwise provided in the Act, all statistics, data, and information filed with or required by the Code Authority in accord ance with the provisions of Section 1 hereof shall be confidential and the statistics, data, and information of one member shall not be revealed to another member. No such data or information shall be published except in combination with other similar data and in such a manner as to a void the disclosure of confidential information. 3. The Code Authority shall make and file with the Administrator such reports as the Administrator may from time to time require. ARTICLE VIII-VIOLATIONS 1. The failure on the part of any member of this industry to comply with the provisions of this Code or to perform any obligation imposed on him thereby shall constitute a violation of the Code. 2. The Code Authority shall investigate alleged violations of this Code and make reports thereon to the Administrator. ARTICLE IX-GENERAL PROYI IONS 1. This Code may, with the approval of the President, be amended except as to provisions required to be included therein by the Act. 2. If any member of the industry is engaged in any other industry, the provisions of this Code shall apply to and affect only that part of his business which is included in the industry. 3. The Code Authority may confer with the members of the industry and the consumers of its product in re s pect of the stabilization of the industry and the elimination of unfair practices and de structive competitive prices, and may formulate and submit to the Administrator its recommendation s to that end. Such recommenda tions when approved by the Administrator shall have the same force and effect as any other provisions of this Code. 4. The Code Authority may secure current information concerning the competition in domestic markets of imported newsprint, and if it shall find that such newsprint is being imported into the United States in substantial quantities or increasing ratio to domestic pro duction and on such terms or under such conditions as to render in effective or seriously endanger the maintenance of this Code, it may complain to the President pursuant to the provi si ons of Section 3 ( e) of the National Industrial Recovery Act and petition for s uitable restrictions on the importation of such newsprint. 5. In order to maintain at all times an adequate domestic supply of raw material for the Industry, it is the declared purpose of the Industry to conserve forest resources and bring about the s ustained production thereof. The Code Authority shall cooperate with the Secretary of Agriculture and other National and State Officials and Agencies and with the Code Authorities of other Industries in planning such practical measures as may be necessary to accomplish such declared purpose, and shall, upon the request of the Secretary of Agriculture, join with the Lumber and Timber

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6 Products Industries in any conference which may be held pursuant to the provisions of Article X of the Code of Fair Competition of the Lumber and Timber Products Industries, approved by the President on August 19, 1933. 6. The trade standards and customs covered by the appendix hereto attached are made a part hereof, and any deviation from them is a violation of the Code. 7. This Code and all the provisons thereof are expressly made subject to the right of the President, in accordance with the provi sions of Section 10 (b) of the National Industrial Recovery Act. from time to time to cancel or modify any order, approval, license, rule, or regulation, issued under said Act, and specifically 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. 8. This Code shall become effective on the second Monday after its approval by the President.

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APPENDIX TRADE CUSTOMS AND TRADE PRACTICES 1. Newsprint, other than tinted news , is white, cream white or blue white, and mild variations thereof. 2. Every manufacturer shall deliver as newsprint paper, as nearly as pra.cticable, paper of an average basis weight of 32 lbs. Five ( 5) percent over or under specified base of weight shall be con sidered good delivery :for individual rolls. Orders for heavier weight bases ( over 24 x 36-32 lbs. to 500 s heets) shall be furnished at no price concession. New print shall not be sold on a production basis. 3. No newsprint shall be designated a 'Culled" and sold at a reduced price. 4. The billing weight of roll newsprint shall be the gros s weight2 including paper and wrappers, less only the weight o: cores ir returnable cores are used. Sheet newsprint shall be billed at the ordered weight unless there is a shortage in excess of 2 percent, in which event paper shall be billed at the actual scale weight. 5. Terms-net cash United States Funds, 30 days from date of shipment; or :from date of withdrawal from warehouse in the case of water shipments; or 15th of month for shipments made during preceding month or any other mutually agreeable arrangement which contemplates an approximate thirty day cash settlement. 6% interest shall be paid on all amounts remaining unpaid on due dates. Time of payment may be extended beyond thirty days, provided interest at the rate of 6 % per annum is charged after thirty days from date of shipment; or from date of withdrawal from warehouse in the case of water shipments. 6. Returnable cores, either paper or iron, shall be charged to the purchaser at 2 cents per running inch and shall be returned promptly, freight prepaid, to the manufacturer. Core s shall be credited to the purchaser a.t the invoiced price when a prepaid bill of lading showing the number and sizes of cores returned to mill o:f manufacturer is received by the manufacturer. Nonreturnable cores shall be included in invoice price of paper and shall not be returnable. 7. No allowance shall be made for waste, damage, or paper left on cores. In case of claim of any nature applying on any shipment, the manufacturer shall be notified immediately, but no claim shall be allowed for consequential damage. B: Miscellaneous Differentials: For newsprint in sheets the differ entials shall not be less than those stated in the following schedule: White Colored For sheets 150 sq. ln., and larger __________________ per ton__ 5 . 00 10. 00 For sheets 72 sq. in. to 149 . q. in ______________________ do ____ 10. 00 15. 00 For sheets 36 sq. in. to 71 sq. in ________________________ ao ____ 15. 0 0 20. 00 (7)

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8 These differentials shall be with relation to the price o . f white newsprint in rolls. Two dollars per ton shall be charged for skid loads if more than 3,000 lbs.; $3.00 per ton on quantities from 3,000 lbs. to 2,000 lbs.; and $5.00 per ton for quantities of 2,000 lbs. and under. Press trimming ,shall be charged for, over the sheet price, as follows: $1.00 per ton for one side. $2.00 per ton for two sides. $3.00 per ton for either three or four sides. If sheet news is packed in skeleton frames, this charge shall be $5.00 per ton over the sheet price. 9. The foregoing trade customs and practices with re,spect to newsprint shall also apply to all other products of the industry. 0

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