Code of fair competition for the broom manufacturing industry as approved on June 18, 1934


Material Information

Code of fair competition for the broom manufacturing industry as approved on June 18, 1934
Portion of title:
Broom manufacturing industry
Physical Description:
p. 19-34 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Brooms and brushes -- United States   ( lcsh )
Cleaning -- Equipment and supplies   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1609-06."
General Note:
"Approved Code No. 465."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
oclc - 650501587
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Approved Code No. 465

Registry No. 1609-06

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.

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Approved Code No. 465



As Approved on June 18, 1934


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 Broom Manufacturing Industry, and hear-
ings 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
Pre ident, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
Administrator for Industrial Recovery.
Approval recommended:
Division Administrator.
June 18, 1934.

C8250--- 657-119- 34



The White House.
SIRS This is a report on the hearing of the Code of Fair Compe-
tition for the Broom Manufacturing Industry held in Washington,
D.C., March 9, 1934, pursuant to notice of hearing number 540, dated
February 23, 1934.

This industry is composed of persons, firms and corporations
engaged in the manufacture of household, toy, whisk and metal case
brooms, quite generally throughout the United States. Broom
manufacturing was originally a household industry, clustering about
the smaller centers of population where broom corn was produced.
At the present time the industry is concentrated for the most part
in and about the larger centers, although considerable rural house-
hold production still exists. It is estimated that there are approxi-
mately 350 establishments employing 4086 workers. There are
numerous small factories or shops operated by individuals alone or
employing one, two or three workers. The small shops are an im-
portant factor in the industry and are largely responsible for the
adoption of the wage minimum which the Code provides. Approxi-
mately 20% of the total production occurs in prisons and other
Article VII governing prison-made goods, and Article VIII deal-
ing with sheltered workshops, are in harmony with the recent pro-
visions regarding institutional products as provided for in the Com-
pact of Fair Competition approved April 19, 1934, and otherwise.
This Code prohibits the employment. of any person under 16 years
of age and under 18 years of age at occupations which are hazardous
or detrimental to health.
The wage minima set forth in the Code represent an increase of
approximately 60% over the average wage paid prior to August,
1933. It is indicated that while this Code will not materially increase
employment within the industry there will be a marked tendency to
stabilize employment and furnish steady work for the employees
thus engaged.
Of 122 companies reporting hours worked, 80 companies (65%)
report that in years of normal business their work week exceeded
40 hours, and of these 80 companies, 31 report normal working hours
in excess of 50 per week.
The average wages for this industry have always been very low.
This is due to many factors, among which are:
1. Influence of institutional and prison-made goods which
amounted to about 20% of total volume in 1932, 10% of which was
made in prisons, 6% in institutions for the blind, and 4% in other

2. Large number of aged and physically handicapped persons to
whom this industry (requiring, as it does, little skill) offers a means
of livelihood.
3. Growing use of brushes, carpet and electric vacuum sweepers,
mops and other broom substitutes.
4. Large number of one and two-man shops (many on the farms
or as a fill-in occupation.) This is an unemployment industry. A
handicapped person can quickly learn to make brooms, peddle
them from door to door, and make some wage for himself, even
though small. This type of labor makes up about half of the
total for the industry and will not come under this code.
5. Another factor has been the decline in the use of parlor, mill
and stable brooms due to lack of demand caused by economic change.
The minimum wages proposed will average abiut 31 per hour.
Compared with the average minimum wages paid for the first six
months of 1933 of 190 per hour. this is an increase .of 120 per hour
(or 61%). Based on figures supplied by a reputable outside agency,
there will be an increase in annual payrolls for 60% of the industry
amounting to $930,000 and an increase in payrolls for the re-
maining 40% amounting to $500,000, making a total increase of
$1,430,000. This represents a general payroll increase of 621/2%.
Only 10% of the reporting companies had minimum wages higher
than those? required for male labor, and only 5% had wages higher
than those required for female labor. The report brings out the
fact that of the companies reporting, two plants were paying male
labor as low as 4t per hour, two plants were paying female labor
as low as 4t per hour, one plant was paying male labor 6 cents per
hour, 10 plants were paying female labor 12 cents per hour, and
21 plants were paying male labor 120 per hour.

For companies reporting (50% of industry)
Actual wages for first six months 1933:
2,388,000 man hours 9' 31 ------------ -------------- $740,280.00
Average wage was 160% of minimum of ---------------- 19
New minimum wage will average --------------------------310
160% of 31t -------------- ----- ------------------------ 49.60
Increase in average wage---------------------------------- 18. 6f
Man hours per year---------------------------- -------- 5, 000, 000
Increase in annual payroll------------------------------ $930,000.00
(For compinics not reporting (4.0% of industry)
Studies show a much lower wage in the small shops and based
thereon it is estimated that for these companies the average wage
before N.R.A. was--------------------------------------- 220
Average after this code ----------------------------------- 37
Increase---------------------------------- ---------- 150
Man hours per year---------------------------------- 3,333,333
Increase in annual payroll --------------------------------- $500, 0001.00
Total for industry
Estimated annual payroll before N.R.A.;
5.000,000 hours @1 31 -------------- --------- $1, 550, 000. 00
3,333,333 hours @ 22 ---------------------------- 733, 000. 00
Total----------- ------------------- $2, 283, 000. 00
Total increase --- ------------------------ $1,430, 000.00
Percent of increase_..-------.--------------- 62.,2o

The foregoing does not take into direct consideration wage in-
creases which will result because of shortening of hours or by reason
of the minimum for office workers. Neither does it consider the
increase in wages or earnings to the one and two man shops not
considered in arriving at what is taken as 100% for the industry.


This Code provides for a maximum work week of 40 hours and
normal work day of 8 hours. There are exceptions with regard to
executive, administrative, or supervisory employees who regularly
receive not less than $30.00 per week, and outside salesmen. Watch-
men may work 56 hours per week. Chauffeurs and deliverymen
may work 44 hours per week. No special peak period is provided
for by this Code, but employees engaged in emergency maintenance
or emergency repair work involving breakdowns or protection of
life or property shall be paid at the rate of not less than one and
one-third times the normal rate for all hours worked in excess of
the maximum allowed.

Factory employees may be divided into two groups, namely, those
who operate machines and those who do not operate machines. Ma-
chine operators shall be paid at a rate not less than 421/ per hour
in the North or 400 per hour in the South. Male employees not
operating machines shall be paid at a rate of not less than 321/2'
per hour in the North or 30t per hour in the South; except that a
differential of 21., per hour is allowed in the case of female em-
ployees engaged in light work, it being provided that women doing
the same work as male employees shall receive the same rate of pay.
Office employees shall be paid at a rate of not less than $16.00 per
week in cities of 500,000 population or over or $15.00 elsewhere.
One and one-half times the normal rate shall be paid for all time
worked (except by watchmen, outside salesmen, and persons em-
ployed in an executive, supervisory, or administrative capacity) on
Sunday, New Year's Day, July Fourth, Labor Day, Thanksgiving
Day, Christmas Day, and such other holidays as may be proclaimed
by the President.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the pro-
ceedings 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 in-
dustry 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 supervi-
sion, by eliminating unfair competitive practices, by promoting the
fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as

may be temporarily required), by increasing the consumption of in-
dustrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving stand-
ards of labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that. the applicant asso-
ciation is an industrial (or Trade) association truly representative
of the aforesaid Industry; and that said association imposes no
inequitable restrictions on admission to membership therein.
(d) The Code is not designed to and will not. permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For the above reasons this Code has been approved.
JUNE 18, 1934.



To effect the policies of Title I of the National Industrial Recovery
Act, this Code is established as a Code of Fair Competition for the
Broom Manufacturing Industry, and its provisions shall be the
standards of fair competition for such Industry and shall be binding
upon every member thereof.

SECTION 1. As used in this Code:
(a) The terms Broom Manufacturing Industry" and "Indus-
try" include the manufacture and sale by the manufacturer of
household, industrial, whisk, toy and metal case brooms, and such
related branches as may, from time to time, be included under the
provisions of this Code.
(b) The term Member of the Industry" includes, without limi-
tation, any individual, partnership, association, corporation or other
form of enterprise engaged in the Industry either as an employer
or on his or its own behalf.
(c) The term Employee" includes any and all persons engaged
in the Industry, however compensated, except a member of the
(d) The term Employer" means any person by whom any such
employee is employed or compensated.
(e) The term President" means the President of the United
(f) The terms "Act" and "Administrator" mean respectively,
Title I of the National Industiial Recovery Act, and the Admin-
istrator for Industrial Recovery or his duly appointed agent.
(g) The term Person means any individual, partnership, cor-
poration, association, or any other business unit.
(h) The term "Association means the National Broom Manu-
facturers' Association.
(i) The term "Watchman includes any employee whose prin-
cipal function is watching and guarding the premises and property
of an establishment of a member of the Industry.
(j) The term "Outside Salesman" means any salesman who is
engaged not less than sixty per cent (60%) of his working hours
outside the place of business of his employer.
(k) The term State" means and includes any and all States,
Territories, and the District of Columbia.
(1) The term "Sheltered Workshop means any charitable insti-
tution, or an activity of a charitable institution, conducted not for

profit, but for the purpose of providing remunerative employment
for physically, mentally or socially handicapped workers.
(m) The term Broom Corn means the panicles, fibres or top
growth of the broom corn plant, an agricultural product.
(n) The term Productive Machinery means winding machines
and sewing machines in reference to household, industrial and whisk
brooms; and nailing, stapling, or banding machines and nailing
benches in reference to metal case brooms.
(o) The term Product means any household, industrial, whisk,
toy, or metal case broom, or any part or piece thereof.
(p) The term "Code Authority means the supervisory agency
designated in Article VI of this Code.
(q) Population for the purpose of this Code shall be determined
by reference to the latest Federal Census.
SECTION 1. No cllployee shall be permitted to work in excess of
forty (40) hours in any week or eight, 8) hours in any twenty-four
(24) hour period beginning at midnight or six (6) days in any seven
(7) day period, except as herein otherwise provided. A normal
work day .hall not exceed eight (8) hours.
(a) The provisions of this Article shall not apply to executive,
supervisory and administrative employees, provided that they shall
be paid regularly at a rate of not le.-s than thirty dollars ($30.00)
per week, and outside salesmeen.
(b) Watchmen may be permitted to work not more than fifty-six
(56) hours in any week.
(c) Chauffeurs and deliverymen may be permitted to work not
more than forty-four (44) hours in any week.
SECTION 2. The maximum hours fixed in Section 1 herein shall not
apply to any employees on emergency maintenance or emergency
repair work involving breakdowns or protection of life or property,
but in any such special case at least one and one-third times the
normal rate shall be paid for hours worked in excess of such maxi-
mum. Reports shall be made monthly to the Code Authority stating
the number of hours worked by all employees in excess of such
maximum hours.
SECTION 3. No employer shall knowingly permit any person or
employee to work for a total number of hours in excess of the num-
ber of hours prescribed for each week and day, whether employed
by one or more employers.

SECTION 1. No person employed in clerical, accounting or other
office -work shall be paid less than at the rate of:
$16.00 per week----------------- In cities of 500,0010 population or over, or
in the mediate trade areas thereof.
$15.00 per week----------------- Elsewhere.
except that office boys and messengers may be paid at a rate of not
less than two dollars ($2.00) per week below the minimum wage
otherwise applicable; provided, however, that not more than ten per

cent (10%) of the total number of office employees may be so em-
ployed, but each establishment may have at least one.
SECTION 2. Other employees shall be paid not less than the fol-
lowing minima respectively:
(a) Operators of productive machinery shall receive not less than
forty-two and one-half cents (4/20) per hour in the North or forty
cents (400) per hour in the South.
(b) Other male employees shall receive not less than thirty-two
and one-half cents (321/2g) per hour in the North or thirty cents
(300) per hour in the South.
(c) Other female employees, generally engaged in light work,
shall receive not less than thirty cents (30W) per hour in the North
or twenty-seven and one-half cents (271/t) per hour in the South.
(d) For the purposes of this Code the South shall include that
section of the United States consisting of the following states: Vir-
ginia, North Carolina, South Carolina, Tennessee, Georgia, Florida,
Alabama, Mississippi, Louisiana and Texas; and North means the
rest of the United States.
SECTION 3. This Article establishes minimum rates of pay which
shall apply irrespective of whether an employee is actually compen-
sated on a time rate, piece work or other basis.
SECTION 4. No employee whose normal full time weekly hours,
after the approval of this Code, shall be sixteen and two-thirds per
cent (16,%%), or less, below his average full time weekly hours for
the four months ending May 1, 1933, shall have his full time weekly
earnings reduced below the average weekly earnings of such em-
ployee during said four months' period. In case the reduction in
hours, as so measured, is more than sixteen and two-thirds per cent
(16%%), employers shall make an equitable readjustment of hourly
wage rates upwards, but in no case shall such hourly wage rates be
less than such employees would have received under the preceding
sentence had their weekly hours been reduced by only sixteen and
two-thirds per cent (162%%). In no case shall hourly wage rates be
SECTION 5. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
SECTION 6. Every contract of employment shall provide that wages
shall be paid in lawful money or by negotiable check no less fre-
quently than semi-monthly. Within fifteen (15) days after the
approval of this Code all back wages due employees for any period
prior to the effective date shall be paid in lawful money or nego-
tiable check.
SECTION 7. A person whose earning capacity is limited because of
age, physical or mental handicap, or other infirmity, may be em-
ployed on light work at a wage below the minimum established by
this Code, if the employer obtains from the state authority, desig-
nated by the United States Department of Labor, a certificate
authorizing such person's employment at such wages and for such
hours as shall be stated in the certificate. Such authority shall be
guided by the instruction of the United States Department of Labor
in issuing certificates to such persons. Each employer shall file
monthly with the Code Authority a list of all such persons employed

by him showing the wages paid to, and the maximum bours of work
for such employee.
SECTION 8. No employer shall permit any person to work in the
Industry without compensation at least equal to the minimum wages
provided for in this Article, except as provided for in Section 7,
SECTION 9. Time and one-half the normal rate shall be paid for
all time worked (except by watchmen, outside salesmen, and those
persons employed in an executive, supervisory, or administrative
capacity, as set forth in Section 1 (a) of Article III) on Sundays
and the following holidays: New Year's Day, July fourth, Labor
Day, Thanksgiving Day, Christmas Day, and such other holidays
as may be proclaimed by the President.
SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry. No person under eighteen (18) years
of age shall be employed at operations or occupations which are
hazardous in nature or dangerous to health. The Code Authority
shall submit to the Administrator within thirty (30) days after the
effective date of this Code a list of such operations or occupations.
In any jurisdiction, an employer shall be deemed to have complied
with this provision as to age if he shall have on file a certificate or
permit duly signed by the Authority in such jurisdiction empowered
to issue employment or age certificates or permits showing that the
employee is of the required age.
SECTION 2. (a) Employees shall have the right to organize and
bargain collectively through representatives of their own choosing,
and shall be free from the interference, restraint or coercion of em-
ployers of labor, or their agents, in the designation of such repre-
sentatives or in self-organization or in other concerted activities
for the purpose of collective bargaining or other mutual aid or
(b) No employee and no one seeking employment shall be required
as a condition of employment, to join any company union or to
refrain from joining, organizing, or assisting a labor organization
of his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
SECTION 3. No provisions in this Code shall supersede any law
which imposes more stringent requirements on employers as to age
of employees, wages, hours of work, or as to safety, health, sanitary
or general working conditions, or insurance, or fire protection, than
are imposed by this Code.
SECTION 4. Every employer shall make reasonable provision for
the safety and health of his employees at the place and during the
hours of their employment. Standards for safety and health shall
be submitted by the Code Authority to the Admlinistrator within
six (6) months after the effective date of this Code.
SECTION 5. No employee now employed at. a rate in excess of the
minimum shall be discharged and reemployed at a lower rate of pay
for the purpose of evading the provisions of this Code.

SECTION 6. Wages shall be exempt from fines; and from charges
and deductions, except charges and deductions covering employees'
voluntary contributions to pension, insurance or benefit funds; and
no employer shall withhold wages except upon service of legal
process or other papers lawfully requiring such withholding. De-
ductions for purposes not heretofore stated may be made only when
the agreement is in writing and is kept on file by the employer open
to the inspection of the Administrator or his duly authorized agent.
SECTION 7. Employers shall not change the method of payment
of employees' compensation or reclassify employees or duties or
occupations performed by employees or engage in any subterfuge
so as to defeat the purposes of the Act or the provisions of this Code.
SECTION 8. Each employer shall post and keep posted in conspicu-
ous places accessible to all employees Articles III, IV and V of this
Code. 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 1. A Code Authority is hereby established consisting of
seven (7) members. All members of the Broom Industry who shall
have qualified to participate in the selection of the members of the
Code Authority in accordance with Section 11 of this Article shall
have the right to vote for the members of the said Code Authority.
Four (4) of the members of the Code Authority shall be elected by
the National Broom Manufacturers' Association. The other three
(3) members of said Code Authority shall be selected from the
members of the Industry who are non-members of the Association.
Within forty-five (45) days. from the effective date of this Code, the
As-,ciation members of the Code Authority shall formulate and
submit for the approval of the Administrator an equitable method
by which the three (3) non-Association members of said Code
Authority shall be selected.
SECTION 2. All members of the Code Authority shall hold office
for one (1) year from the date of their election or until their respec-
tive successors are elected, provided that the non-members of the
Association so elected shall not take office until the terms of their
predecessors shall have expired. Elections of the Code Authority
shall be held annually on a date fixed by the Code Authority.
SECTION 3. In addition to membership, as above provided, there
may be one or more members without vote to be appointed by the
Administrator to serve on the Code Authority for such time as he
may designate. The representatives who may be appointed by the
Administrator, together with the Administrator, shall be given
notice of and shall be permitted to sit at all meetings of the Code
SECTION 4. Any vacancies occurring in the membership of the
Code Authority shall be filled by election as provided herein for
the election of the original members.

SECTION 5. In the selection of the members of the Code Authority2
a vote cast by mail or by proxy shall have the same force and effect
as a vote cast in meeting.
SECTION 6. The Code Authority shall have as its Chairman one of
its members duly elected by the members thereof.
SECTION 7. If the Administrator shall determine that any action
of a 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 investi-
gation 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 days' notice to him of intention to proceed
with such action in its original or modified form.
SECTION 8. Each trade or industrial association directly or in-
directly participating in the selection or activities of the Code
Authority shall (1) impose no inequitable restrictions on member-
ship, and (2) submit to the Administrator true copies of its articles
of association, by-laws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem neces-
sary to effectuate the purposes of the Act.
SECTION 9. 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
SECTION 10. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor
shall any member of the Code Authority be liable in any manner to
anyone for any act of any other member, officer, agent or employee
of the Code Authority. Nor shall any member of the Code Author-
ity, exercising reasonable, diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to act under
this Code, except for his own wilful misfeasance or non-feasance.

SECTION 11. The Code Authority shall have the following further
powers and duties, subject to such rules and regulations as may b3
issued by the Administrator:
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisions of
the Act, subject to such rules and regulations as the Administrator
may establish.
(b) To adopt rules and regulations for its procedure and for the
administration of the Code.
(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 required to be submitted to the Code Au-
thority, members of the Industry subject to this Code shall furnish

such statistical information as the Administrator may deem neces-
sary for the purpose recited in Section 3 (a) of the Act to such
Federal and State agencies as he may designate; provided that
nothing in this Code shall relieve any member of the Industry of
any existing obligation to furnish reports to any Government
agency. No individual report shall be disclosed to any other mem-
ber of the Industry or any other party except to such other Gov-
ernmental agencies as may be directed by the Administrator.
(d) It being found necessary, in order 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
1. 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;
2. To submit to the Administrator for his approval, subject to
such notice and opportunity 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 upon which the funds necessary
to support such budget shall be contributed by members of the
3. After such budget and basis of contribution have been approved
by the Administrator, to determine and secure equitable contribution
as above set forth by all such members of the Industry, and to that
end, if necessary, to institute legal proceedings therefore in its own
na ne.
Only members of the Industry complying with the Code and con-
tributing to the expenses of its administration as provided in Section
1 hereof shall be entitled to participate in the selection of the mem-
bers 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.
(e) To cooperate with the Administrator in regulating the use
of any N.R.A. insignia solely by those members of the Industry
who are complying with this Code.
(f) The Code Authority is empowered to establish from time to
time geographical divisions of the Industry and to increase or de-
crease the number of such divisions, all subject to the approval of
the Administrator. When any geographical division of the Indus-
try has been established, the Code Authority shall supervise the
election by the assentors to the Code in such division, of a Regional
Code Authority. All assentors to the Code maintaining an office or
a plant in such division shall be entitled to vote for the members of
the Regional Code Authority and to serve as a member thereof.
Regional Code Authorities, so created, shall have the right to advise
the Code Authority in the administration of this Code on questions
having local application and shall assist the Code Authority as
directed by them in the administration of this Code; provided,
however, that the Code Authority in delegating any powers, duties
or functions to a Regional Code Authority shall not be relieved of
any of its responsibilities under this Code. The Administrator

shall have the right to designate one or more Administration mem-
bers to serve without vote on each such Regional Code Authority.
Any action pursuant to this paragraph shall be subject to disap-
proval by the Administrator.
(g) Upon application of a substantial number of the assentors to
the Code in any Product Division of the Industry, the Code Author-
ity may establish Product Divisions of the Industry. Such Product
Divisions operating through duly elected committees may submit
additional amendments for incorporation in this Code relating to
trade practices of such Product Divisions. The Code Authority
may also delegate to such Product Division Committees adminis-
trative duties and functions relating to the trade practices of such
divisions, subject to such rules and direction as the Code Authority
may prescribe and subject to disapproval by the Administrator.
(h) To recommend to the Administrator further fair trade prac-
tice provisions to govern members of the Industry in their relations
with each other or with other industries and to recommend to the
Administrator measures for industrial planning, including stabiliza-
tion of employment.
SECTION 12. Members of the Industry and the Code Authority
shall use their best efforts to insure the full observance of the condi-
tions of this Code. Any violations of the terms of this Code which
shall come to the knowledge of any member of the Industry shall
immediately be communicated to the Code Authority by a sworn
statement containing said charges of violations of the terms of this
Code, together with all available substantiating evidence.
It shall be the duty of the Code Authority to investigate such
charges and any charges which shall come to the knowledge of the
Code Authority through any other reliable source. The Code
Authority shall request a statement under oath from the member
of the Industry whose transactions are under investigation. If,
after investigation, the Code Authority shall find that such charges
are substantiated, it shall either notify the member so violating the
conditions of this Code, requesting that such violations be discon-
tinued, or it shall notify the Administrator in writing requesting
him to take necessary action, or both.
SECTION 13. In order to protect American Agriculture, the mem-
bers of this Industry, and the consumer, the Code Authority, with
the cooperation of the Department of Commerce shall collect and
publish from time to time data pertaining to the import of broom
corn produced outside of the United States and 'or substitutes there-
for and the import of brooms produced wholly or in part outside of
the United States. The Code Authority is authorized to petition
the President under Section 3 (e) of the National Recovery Act for
restrictions on such imports as may' be necessary and desirable to
comply with the intent of such section.
SECTION 1. Where any penal, reformatory, or correctional insti-
tution or the State by which said institution is maintained either
by subscribing to the Compact of Fair Competition for the Prison
Industries of the United States of America, or by a binding agree-
ment of any other nature, satisfies the Administrator that merchan-

dise produced in such institution or by the inmates thereof will not
be sold except upon a fair competitive basis with similar merchandise
not so produced, the provisions of Section 2 hereof shall not apply
to any merchandise produced in such manner in an institution which
is a party to such agreement.
SECTION 2. Except as provided in the foregoing section no member
of the Industry shall knowingly produce, buy, or contract to buy
any merchandise produced in whole or in part in a penal, reforma-
tory, or correctional institution. No member of the Industry shall
knowingly sell or offer for sale such merchandise. Nothing in this
section, however, shall affect contracts, which the member of the
Industry does not have the option to cancel, made with respect to
such merchandise before the approval of this Code by the President
of the United States.

SECTION 1. No provisions of this Code shall be construed to apply
to any sheltered workshop, provided such sheltered workshop shall
have executed a pledge to the Administrator (1) that it will not
employ minors under 16 years of age, except those whose employ-
ment shall be approved by the appropriate Regional Committee
of the National Sheltered Workshop Committee, (2) that it will not
engage in destructive price cutting or any other unfair method of
competition, and (3) that it will not wilfully hamper or retard
the purposes of the Act.

SECTION 1. Selling Below Cost.-No member of the Industry
shall sell products of the Industry at lower than his own cost, as
computed in accordance with the provisions of Sections 2 and 3 of
this Article; provided, however, that any member of the Industry
may sell below his own cost to meet sales prices of a competitor, who
is not violating the provisions of this Article, on products of equiva-
lent design, character and quality.
For the purpose of determining a violation of this clause, all
terms of sale, including cash discounts shall be considered. Noth-
ing contained in this section shall be construed so as to in any
manner fix prices paid to producers of broom corn.
SECTION 2. Accounting.-Each member shall use an accounting
system which shall conform to the principles of and is at least as
detailed and complete as the standard and uniform method of
accounting that shall be formulated or approved by the Code
Authority, subject to the approval of the Administrator, with such
variations therefrom as may be required by the individual condi-
tions affecting any member, provided such variations are approved
by the Administrator after recommendation by the Code Authority.
SECTION 3. Elements of Cost.-For determination of cost as used
in Section 1, of this Article the Code Authority, with the approval
of the Administrator, shall from time to time set forth the elements
which shall enter into cost. Such elements shall provide for the
inclusion of material costs at purchase cost or replacement market
cost whichever is lower.

SECTION 4. Investigation.-Upon complaint against any member
of the Industry of a violation of Sections 1, 2 or 3 of this Article,
the Code Authority may, upon authority granted by the Adminis-
trator, designate a certified, registered, chartered, or any other
lawful practitioner of public accountancy, to examine, during the
usual hours of business, the books and records of the member of the
Industry against whom complaint has been made. Only such books
and records as pertain to the alleged violation may be examined by
the accountant employed, and said accountant shall not reveal to
the Code Authority any other information obtained than infor.
mation which is pertinent to the alleged violation.
SECTION 5. Substitbtes.-Any broom containing any particle,
piece or part of any grass, straw, or fibre as a substitute for broom
corn shall have attached thereto, in such manner as to be plainly
visible to the purchaser thereof, a separate label at least one inch
removed from the regular label, plainly printed in not less than
10 point bold face type in black letters on white paper, the legend:
'This broom contains (here give the common, trade name of the
substitute). a substitute for broom corn."
Failure so to mark is a violation of this Code.
SECTION 6. Trade Practice Ruldes.-The following practices con-
stitute unfair methods of competition and are prohibited:
(a) Bribery.-No member of the Industry shall give, permit to
be given or directly offer to give, anything of value for the purpose
of influencing or rewarding the action of any employee, agent or
representative of another in relation to the business of the employer
of such employee, the principal of such agent or the represented
party, without the knowledge of such employer, principal or repre-
sented party. This provision shall not be construed to prohibit free
and general distribution of articles commonly uied for advertising
except so far as such articles are actually used for commercial
bribery as hereinabove defined.
(b) Defamration..-Disseminating, publishing or circulating any
false or misleading information relative to any products or price
for any product of any member of the Industry, or the credit stand-
ing or ability of any member thereof.
(c) Indtucing Breach of Existing Contracts.-No member of the
Industry shall wilfully induce or attempt to induce the breach of
existing contracts between competitors and their customers by any
false or deceptive means, or interfere with or obstruct the perform-
ance of any such contractual duties or services by any such means,
with the purpose and effect of hampering, injuring or embarrassing
competitors in their business.
No member of the Industry shall require that the purchase or
lease of any goods be a prerequisite to the purchase or lease of any
other goods.
(d) Unfair Practlecs.-Aiding or abetting any person within this
Industry in any unfair method of competition contained in this
(e) False Invoicing.-No member of the Industry shall know-
ingly withhold from or insert in any quotation or invoice, any
statement that makes it inaccurate in any material particular.

(f) Trade-Marks and Brands.-The unauthorized use of any de-
sign, trade-mark, brand, label, insignia, or slogan belonging to an-
other Member of the Industry, or simulation thereof, with the pur-
pose or intent to deceive or having the tendency or capacity to
receive or mislead the purchaser.
(g) Unsold Merchandise.-Agreeing with buyers that brooms un-
sold may be returned for credit or returned for exchange for other
(h) Labels.-All products, except whisk brooms and toy brooms
shall be labeled with the name and address or key number of the
manufacturer plainly visible, provided, however, that members of
the Industry who at the time of the approval of this Code are selling
products of the Industry bearing labels which do not conform to the
above may continue to do so until their present supply of such labels
is exhausted, but in no event shall such use be continued more than
ninety (90) days after the date of approval of this Code, and no
purchases of such labels shall hereafter be made by any member of
the Industry.
(i) Special Labels.-Furnishing to customers without recognition
therefore in the sales price of the product of any special labels featur-
ing the name or names of any private brand, trade-mark or design
of any person, partnership, firm or corporation, shall be considered
a secret rebate and as such an unfair trade practice.
(j) False Labeling.-To mark, label, or brand any broom in such
a manner as to misrepresent the weight, size, quality or the material
used therein.
(k) Prizes and Premiums.-No member of the Industry shall offer
any prize or premium or gift in pursuance of a plan which involves
fraud or deception or lottery, or which is an indirect price concession.
SECTION 1. (a) This Code and all the provisions thereof are ex-
pressly made subject to the right of the President, in accordance with
the provisions of Sub-section (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.
(b) This Code, except as to provisions required by the Act, may
be modified on the basis of experience or changes in circumstances,
such modifications to be based upon application by members of the
Industry to the Administrator and such notice, and hearing as he
shall specify, and to become effective upon approval by the Ad-
No provisions of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrim-
inate against small enterprises.
This Code shall become effective the second Monday after
Approved Code No. 465.
Registry No. 1609-06.


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