Approved Code No. 509 Registry No. 1114-31 

NATIONAL RECOVERY ADMINISTRATION 

C·ODE OF FAIR COMPETITION 

FOR THE 

MARINE EQUIPMENT 

MANUFACTURING INDUSTRY 

AS APPROVED ON AUGUST 27, 1934 

" ----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

I 

[ 

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Approved Code No. 509 

CODE OF FAIR COMPETITION 

FOR THE 

MARINE EQUIPMENT MANUF AC'l"URING 

INDUSTRY 

As Approved on August 27, 1934 

ORDER 

APPROVING CoDE OF FAIR ConiPETITION FOR THE MARINE EQuiPMENT 

MANUFACTUJUNG INDUSTRY 

An application having been duly 1nade pursuant to and in full 

compliance with the provisions of Title I of the National Indu trial 

Re?overy Act, approved June 16, 1933, for approval of a Code of 

Fa1r Competition for the Marine Equipment l\1anufacturing Industry, and hearing 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 

President, 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 Coue complies in all respects 

with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code 

of Fair Competition be and it is hereby approved; provided, however, that the provisions of Article X, insofar as they prescribe a 

waiting period between the filing with the Code Authority and the 

effective date of revised price lists or revised terms and conditions of 

sale be and they :ue hereby stayed pending my further Order; and 

provided, that the provisions of Article X , Section 5, be and they 

are hereby stayed pending my further Order; and provided, that the 

operation of all the provisions of this Code be and they arc hereby 

stayed as to all parties subject thereto insofar as they may apply to 

the products of the Gray Iron Foluldry Industry, the Non-Ferrous 

Foundry Indu try, and the Electrical Manufacturing Industry, for 

a period of 60 days luring which time the Code Authorities for the 

Gray Iron Foundry Industry, the Non-F rrous Foundry In 1u try, 

the Electricc l l\fanufacturing Industry, an 1 the l\1arine Equipment 

l\1anufacturing Industry shall seek through onference to adjust 

their differences regarding the definition of this Code, and report 

~2~4~ ----1044-13 ----34 (1) 
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to me within 60 days the results of such conferences; and provided 

further, that this stay may be extended by my further Order. 

liUGH 8. JOHN 'ON, 

Administrator for I ndustrial R ecovery. 

Approval recommended: 

BARTON \V. MURRAy' 

Division AdministTatoT. 

"'\VASHINGTON, D.C., August ~7, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White H oU8e. 

Srn: This is a report on the Code of Fair Competition for the 

:Marine Equipment Manufacturing Industry of the United States, 

the hearing having been held in Washington on the 22nd day of 

May in accordance with the provisions of the National Industrial 

Recovery Act. 

PROVISIONS AS TO HOURS AND ·wAGES 

Hours of employment are limited to 8 a day and 40 a week except 

for executives and managers earning $35.00 or more weekly, salesmen and employees on emergency maintenance or repair work. 

During seasonal periods a tolerance of 48 hours in any 26-week 

period is permitted. Shipping employees may work 10 hours a day, 

but are limited to 80 hours in any two-week period. Tim.e and onehalf will be paid for all hours in excess of 8 a day and 40 a week 

except to shipping employees, who may be paid at the regular rate 

for 44 hours a week. 

Watchmen may work 56 hours a week. 

Forty cents an hour is established as a minimum wage for males 

and females except in the Southern area where 321j2¢ an hour will 

be the minimum. 

CHILD LABOR 

No one under 16 years of age may be employed and no one under 

18 years of age may be employed at hazardous occupations. 

ECONOMIC EFFECT OF THE CODE 

In 1933 this Industry, which comprises approximately 50 firms, 

employed about 1,000 persons. Since the adoption of 40-hour week 

as provided in this Code, employment has increased to 1,500 persons 

in July, 1934, or "~ n increase of 50%. 

The invested capital of the Industry is about $5,000,000.00, and 

the average annual sales of its products over the past 5 years is 

a.pproximately $1,500,000.00. 

FINDINGS 

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 proceedings in this matter : 

I find that: 

(a) Said Code i wel,l le igned to promote the policies and purposes of Title I of the National Industrial Recovery Act, includ-

(3) 
4 

ing removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative actiOn among trade groups, 

by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by 

eliminating unfair com.petitive practices, by promoting the ful,lest 

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 industrjal and 

agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,090 employee ; and is not classified by me as a major indu try. 

(c ) The Corle as approved complies in all r espects with the per- tinent provisions of said Title of said Act, including without limita,-

t.ion Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and tha.t the applicant association is an industrial association truly representative of the aforesaid Industry; and that sajd association im.poses no inequitable restrictions on admission to membership therein. 

(d) The Code is not designed to and wil,l 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 aid 

Code. 

For these reasons, this Code has been approved by me subject 

to the following conditions: 

That a stay be placed on the waiting period between the date of 

filing and the effe.cti ve date of revised price lists or revised terms 

and conditions of sa.le as provided in Article X. 

That a stay be placed on the operation of all the provi ons of 

this Code insofar as they may apply to products of the Electrical 

~1anufacturing Industry, the Non-Ferrous Foundry Indu try, and 

the Gray Iron Foundry Industry for a period of GO days, during 

which time the affected Code Authoritie shall endeavor to adjust 

their differences and report to Ine, and which stay may be extended 

by my further Order. 

Respectfully, 

HuGHS. JorrNsoN, 

A dn~inis t1·ator. AuGUST 27, 1934. 
CODE OF FAIR COMPETITION FOR THE MARINE EQUIPl\1ENT MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSES 

To effect the policies of Title I of theN ational Industrial Recovery 

Act, this Code is submitted as a Code of Fair Competition for the 

:Marine Equipment Manufacturing Industry, and upon approval its 

provisions shall be the standards of fair competition for such Industry and be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

The term "Marine Equipment Manufacturing Industry", hereafter referred to as the Industry, is defined to mean the fabrication 

or manufacture for sale of equipment exclusively for marine usage 

to include specifically the following lines: 

Air Ports 

Anchors, forged, cast-iron or malleable-iron,weighing 500 pounds 

or less. 

Binnacles 

Blocks, yacht, typB of cast iron, malleable iron, brass or lignum 

vitae. 

Boat fenders 

Buoy rods 

Calking tools 

Cargo hooks, boat hooks, and poles 

Chocks 

Cleats 

Controls for marine engines (spark, throttle, and reverse gear) 

Deck plates 

Eye and chain plates 

Flag pole sockets 

Fog horns, whistles and sirens,-marine type 

Galley sinks of sheet metal andjor enan1eled iron 

Gasofine strainers 

Grapnels 

Lavatories, manually operated marine pump type, and fittings 

therefor 

Life preservers, other than cork 

Lighting fixtures, marine type 

l\1anhold plates, marine type 

MRrine cushions 

Marine lock sets 

Marine muftlers 

Marine scrapers 

Marine haft bearings of rubber, fibre, babbitt and/or brass 

Marine sto-ves other than wood or coal burning type 

(5) 
6 

Mast and spar bands, bel~ ying pins, and fittings therefor 

Mast track 

l\1ooring bitts 

Navigation lights 

Oars and paddles (except sawmill operations) 

Oar tips and oar leathers 

Propellers, finished, 'bronze andjor nonferrous metal, (forty-eight 

( 48) inches or less in diameter) 

Pumps, bilge (manually operated) of cast iron, cast brass, or sheet 

metal 

Pumps, galley and lavatory (manually operated) up to 2" diameter 

Pumps, gea1·, of bronze, up to 1" pipe size 

Row locks 

Sail slides 

Sea-cocks and through hull connections up to 2" 

Searchlights, marine type up to 14" diameter 

Self bailers 

Sheet n1etal products of standard marine design, including ventilat9rs, buoys, scoops, screens, etc. 

Snaps, boat and jib 

Stanchion fittings (except standard pipe fittings) 

Steering equipment (manually operated) for boats up to 100 feet 

long 

Thimbles, solid 

Toilets (m.anually operated), marine pump type, up to 3" inside 

cylinder dia:meter 

Turnbuckles, pipe and bronze 

Underwater hull fittings 3" and less 

\~Tindlasses or winches (manually operated) 

And such other items of equipment made particularly for marine 

usage when approved by the Administrator upon the r ecommendation of the Code Authority. 

The term "Employee," as used herein, includes any and all persons 

engaged in the Industry, however compensated, except a member of 

the Industry. 

The term "Employer," as used herein, includes any one by whom 

such employee is compensated or employed. 

The term "l\1ember of the Industry,' as used herein, includes but 

without limitation, any individual, partnership, association, corporation or other form of nterprise engaged in the Industry either us 

an employer or on his or its own behalf. 

The ter-m "President", "Act", and "Administrator", as used 

her ein, shall menn respectively the President o£ the United States, 

Title I o£ the National Industrial Recovery Act, and the Administrator for Industrial Recovery. 

The term "A.s ociation ", as used herein, is defined to mean the 

Marine Equipment l\'Ianufacturer Association. 

ARTICLE III-HouRs 

SEcTION 1. No employee shall be permitted to work in excess o:f 

forty ( 40) hours in any one week or eight (8) hours in any twentyfour (24) hour period, except as herein otherwise provided. 
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SECTION 2. The provi ions f this Article limiting hours of work 

shall not apply to traveling , ale men, or to per ons engaged in a 

managerial or executive capacity who earn not I s than thirty-five 

($35.00) dollars per week. 

SECTION 3. The maximum hours fixed in Section 1 shall not apply 

to any employ e on mergency maintenance or emergency repair 

work involving breakdowns or protection of bfe or property, but in 

any uch special case at least one and one-half (11/2 ) times the regular rate shall be paid for all hours worke l in exces,s of eight ( 8) 

hours in any day or forty ( 40) hour in any week. 

SECTION 4. The maximum hours fixed in ection 1 shall not apply 

for six ( 6) weeks in any t'iventy-six (26) weeks' period, during which 

time, however, overtime shall not exceed eight ( 8) hours in any one 

(1) week; provided, however, that in any such special ca,se at least 

one and one-half (1lj2 ) times the regular rate of pay hall be paid 

for hours worked in excess of eight (8) hours in any day or forty 

( 40) hours in any week. 

SECTION 5. The maximum hours fixed in Section 1 shall not apply 

to .. hipping department employees who may be employed forty ( 40) 

hours per week averaged over a two-week period, providing that 

no employee shall work in exce,ss of ten (10) hours in any one day 

and provided further that in any such case at least one and one-half 

(1lj2 ) times the regular rate of pay shall be paid for all hours worked 

in excess of eight (8) hours in any one day or forty-four (44) hours 

in any one week. 

SECTION 6. No employee shall be ;permitted to work more than 

six (6) days in any seven (7) day penod. 

S=cTION 7. vVatchmen ,shall not be permitted to work in e;-cess 

of fifty-six (56) hours in any week. 

SECTION 8. No employer shall knowingly permit any employee 

to work for any time, which, when totaled with that already performed for another employer or employers, exceeds the maximum 

prescribed herein. 

SEcTION 9. Employers who personally perform manual work or 

are engaged in mechanical operations shall not exceed the prescribed 

1naximum number of hours. 

ARTICLE IV-vVAaEs 

SECTION 1. No employee shall be paid less than at the rate of forty 

( 40) cents per hour, except as herein otherwise provided. 

SECTION 2. No employee engaged in the production of boat oars 

and paddles, (excepting sawmill oporations), shall be paid less than 

at the rate of forty ( 40) cents per hour, excepting in the Southern 

wage area comprising the States of North Carolina, South Carolina, 

Florida, Georgia, Alabama, Tennessee, 11ississippi, Arkansas, Louisiana, Oklahoma, and Texa , in which no employee shall be paid 

less than at the rate of thirty-five (35) cents per hour. 

SE TION 3. No employee engaged in sewing and other operations 

in the production of life preserver·, boat fenders, and imilar product , shall be paid le s than at the rate of thirty-:fiYe (35) cents per 

hour, excepting in the Southern wage area comprising the States of 

North Carolina, South Carolina, Florida, Georgia, Alabama, Ten-

~~~4~·----1044-131----34----2 
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nessee, Mississippi, Arkansas, Louisiana, Oklahoma, and Texas, in 

which no employee shall be paid less than at the rate of thirty-two 

and one-half (32¥2 ) cents per hour. 

SECTION 4. No clerical or office employee shall be pail less than at 

the rate of fifteen ($15.00) dollars per week. 

SECTION 5. Office boys and girls 1nay be paid not less than ejghty 

( 80) per cent of the minimum salary provided for clerical or office 

employees in Section 4 of this Article; provided that the munber 

of such office boys and girls so paid shall not exceed five ( 5) per cent 

of the total number of clerical or office employees in any establi h- inent, but in any case an employer shall be entitled to employ one (1) 

such employee. 

SECTION 6. This Article establishes a minimum rate of pay regardless of whether an employee is compensated on a time-rate, piecework, or other basis. 

SECTION 7. The:re shall be an equitable adju 'tment of all wage rates 

above the minimum unless this has already been done, but in no case 

shall the wages above m.inimum be decreased as a result of this 

adju tment. The action taken by each member shall be reported to 

the Code Authority within thirty (30) days after the effective date 

and to the Administrator on request. SECTION 8. Fem.ale employees performing substantially the same 

work as male employees shall receive the same rate of pay a male 

employee ; and where they displace men, they shall receive the san1.e 

rate of earnings as the men they displace. The Code Authority hall 

within ninety days after the effective clute of this Code file with the 

Administrator a de cription of all occupations in the Indn try in 

which both men tmcl women are employed. 

SECTION 9. A person whose earning capacity is limited because of 

age, physical or mental handicap, or other infirmity, may be employed on light work at a wage below the minimum establi ·heel by 

thi Code, if the employer obtains from the State authority, designated by the United States Department of L abor, a certificate author- izing such person's employment at such wages and for such hour. as 

shall be state l in the certificate. Such authority sh!lll be guide l by 

the in truction of the Unite l State. Department of Labor in i uing certificates to such persons. Ea h employer shall file monthly 

with the Code Authority a li t of all uch persons employed by 

him, showing the wages paid to, and the maximum hours of work 

for such employee. 

SECTION 10. Every employer shall make payment of all wage clue 

in lawful currency or by negotiable check therefor, payable on 

den1and. These wages hall be exempt from any paymen f r nsions, insurance, or si k benefits other than tho e voluntarily paid by 

the wabe earner or required by State laws. 'Vaaes hall be pail at 

least at the end of every two-week period, and sularie at least at the 

end of every month. No employer hall "ithholl wage . Th em- ployer or his agents hall ac ept no rebate directly or indir tl on 

such wages nor give anything of value or ext nd fa ors to any per on 

for the purpose of influencing rate of wage or the working conditions of his employees. 
9 

SECTION 11. No employee shall be dismi ed or demoted by reason 

of making a complaint or giving evidence with resp ct to a violation 

of this Code. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. No person under sixteen ( 16) years of age shall be 

employed in the Industry. No per on under eighteen ( 18) years of 

age ha.ll be employed at operations or occupation which are hazardous in nature or detrimental to health. The Code Authority shall 

submit to the Administrator within ninety (90) day after approval 

of this Code a list of such operations or occupations. In any State 

an employer shall be deemed to have complied with this provision as 

to age if he shall have on file a valid certificate or permit duly signed 

by the Authority in such State empowered to issue employment or 

age certificates or permits showing that the employee is of the 

required age. 

SECTION 2. It is hereby provided: That employee shall have the 

right to organize and bargain collectively through representatives of 

their own choosing and shall be free from the interference, restraint, 

or coercion of employers of labor, or their agents, in the designation 

of such representatives or in self-organization or in other concerted 

activities for the purpose of collective bargaining or other mutual 

aid or protection. 

That no employee and no one seeking employment shall be required 

ns a condition of employment to join any company union or to refrain 

from joining, organizing, or assisting a labor organization of his 

own choosing. 

That 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 employer shall r eclassify em.ployees or duties of 

occupations performed or engage in any other subterfuge for the 

purpose of defeating the purpose or provisions of the Act or of 

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 Administrator for approval within three months after the effective date of this Code. 

SECTION 5. No provision in this Code shall supersede any State or 

Federal law which imposes on employers more stringent requirements 

as to age of employees, wages, hours of work, or as to health, general 

working conditions, or fire protection, than are imposed by this • 

Oode. 

SEcTION 6. All employers shall post and keep po ted copies of the 

labor provisions of this Code in conspicuous places accessible to all 

employees. Every member of the Industry hall comply with all 

rules l:'.nd regulations relative to the posting of provisions of Codes 

of Fair Competition which may from time to time be prescribed by 

the Administrator. 
10 

ARTICLE VI-ORGANIZATION AND ADl\IINISTRATION 

SECTION 1. (a) During the period not to exceed sixty ( 60) days 

following the effective date, the Code Committee of the Industry 

shall constitute a temporary Code Authority until the Code Authority is elected. 

(b) The Code Authority shall consist of seven (7) individuals, or 

such other number as may be approved from time to time by the 

Administrator, to be selected as hereinafter set forth. The Administrator, in his eli cretion, may appoint not more than three ( 3) additional members (without vote) to represent the Admini trator or 

such groups or interests as he may provide. 

(c) Five (5) me1nbers of the Code Authority shall be elected by 

members of the Industry who are members of the Association. This 

election shall be held at a meeting of the Association, such meeting 

to be called by th~ Association within thirty (30) days after the 

approval of this Code. Notice of such meeting shall be sent to all 

kno·wn members of the Industry who are members of the As ociation 

and each member shall be entitled to vote on the basis of one (1) 

vote for every <!:25,000.00 or fraction of sales up to and including 

$100,000.00; one ( 1) vote for every $50,000.00 or fraction from 

$100,000.00 to $200,000.00; one ( 1) vGte for every $100,000.00 or 

fraction above $200,000.00. For this purpose. the number of votes 

is to be detormined from the sales figures of the products of this 

industry for the previous year as certified to an agent of the Code 

Authority. Only sales on which a mmnber performs a substantial 

part of the fabrication are eligible for the calculation of voting 

power. This section is subject to the exception that no one member 

may cast more than twenty (20) per cent of the total number of 

votes cast. Fifty-one (51) per cent of the votes so cast shall be necessary for the election of each individual member. No member of 

the Industry shall have more than one (1) representative on the 

Code Authority. 

(d) Two (2) additional members of the Code Authority shall be 

elected :from and by the non-members of the A. ociation If they so 

de ire, at a meeting duly called for such purpo e by a member vote 

to be cast either in person or by proxy, or by letter ballot. A plurality of the votes ast shall be necessary for election. 

(e) A vacancy in the membership of the Code Authority hall be 

filled in the above manner either at a special meeting or by a mail ballot, at the discretion of the remaining members of the Code Authority. 

SECTI N 2. Each trade or in lu trial association directly or indirectly participating in the selection or activities of tho Code Authority shall (1) impose no inequitable restrictions on membershipl .. un l (2) submit to the Admini trator true copies of its articles ot 

a sociation, by-laws, regulations, and any amendments when made 

thereto, together with uch other information as to memb r hip, 

organization, and activities as the Admini trator may em necessary 

to effectuate the purpo"es of the Act. 

SE ·noN 3. In order that the Cole \..uthority hall at all times be 

truly repres ntative of the Inclu try and in other re pe comply 

with the provisions of the A t, th Admini trator may 1 rescribe such 

hearings as he may deem proper; and thereafter if he shall find that 
11 

the Code Authority is not truly representative or does not in other 

respect comply with the provi ions of the Act, may require an appror riate modifi ation of the Code Authority. 

SECTION 4. Nothing ontained in this Code shall constitute the 

member · of the Code Authority partners for any purpose. Nor shall 

any member of the Code Authority be liabl 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 ode Authority, 

exerci ing rea onable diligence in the conduct of hi duties hereunder, 

be liable to anyone for any action or omission to act under thi Cod , except for his own wilful malfeasance or non-feasance. 

SECTION 5. If the Administrator shall at any time determine that 

any action of the Code Authority or any agency thereof may be unfair or unjust or contrary to the public intere t, the Admini tl·a tor 

may require that such action be suspended to afford an opportunity 

for investigation of the merits of such action and further con ideration by such Code Authority or agency pending final action which 

shall not be effective unle s the Administrator approves or unless he 

shall fail to disapprove after thirty (30) days' notice to him of 

intention to proceed with such action in its original or modified 

form. 

PowERs AND DuTIES 

SECTION 6. Subj ect to such rules and regulations as may be i sued 

by the Administrator, the Code Authority shall have the following 

powers and duties, in addition to those authorized by other provisions 

of this Code. (a) To insure the execution of the provisions of this Code and to 

provide for the compliance of the Indu try with the provi ·ions of 

the Act. 

(b) To adopt by-laws and rules and regulations for its procedure. 

(c) To obtain from members of the Industry such information and 

report as are required for the administration of the Code. In adcli-

- tion to information required to be submitted to the Code Authority, 

mombers of the Industry subject to this Code shall furnish such statistical information as the Administrator may deem neces ary for 

the purposes recited in Section 3 (a) of the Act to such Federal and 

State agencies as he may designate ; provided that nothing in this 

Code hall relieve any member of the Industry of any existing obligation to furni h reports to any Government agency. No individual 

report hall be disclosed to any other member of the Indu try or any 

other party except to such other Goyernmental agencies as may be 

directed by the Administrator. 

(d) To use such trade associations and other ao·encies as it deems 

proper for the carrying out of any of its activities pro\ icl c1 for 

herein provided that nothing herein shall relieve the Code Authority 

of it duties or re. pon ibilities under thi Code and that such trade 

associations and agencie shall at all time be ubj ect to and comply 

with the provi ions her of. 

(e) To make recommendations to the Admini trator for the coordination of the admini tration of this Code with such other codes~ 

if any, as may be related to or effect members of the Indu try. 
12 

(f) To recommend to the Administrator any action or measures 

deemed advisable, including further fair trade practice provisions 

to govern members of the Industry in their relations with each 

other or with other Industries; measures for industrial planning, 

and stabilization of employment; and modifications of thi Code 

which shall become effective as part hereof upon approval by the 

Administrator after such notice and hearing as he may specify. 

(g) To appoint a Trade Practice Committee which shall meet 

with the Trade Practice Committees appointed under such other 

codes as may be related to the Industry for the purpo e of formulating fair trade practices to govern the relationships betwen employers under this Code and under such other codes to the end that such 

fair trade practices may be proposed to the Administrator a amendments to this Code and such other codes. 

(h) To recommend to the Administrator fair and equitable definitions of customers. Upon approval by the Administrator such 

definitions shall be used by all members of the Industry. 

ARTICLE VII-AssEssMENTS 

SECTION 1. It being found necessary in order to support the 

administration of this Code and to maintain the standards of fair 

competition established hereunder and to effectuate the policy of 

the Act, the Code Authority is authorized : 

(a) 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 rai eel as hereinafter provided and which 

shall be held in trust for the purposes of the Code; 

(b) 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 ex pen es for the foregoing 

purposes, and (2) an equitable basis upon which the funds nece sary 

to support such budget shall be contributed by members of the 

Industry; 

(c) After such budget and basis of contribution have been 

approved by the Administrator, to determine and obtain equitable 

contribution as above set forth by all members of the Indn try1 and 

to that end, if necessary, to institute legal proceedings therefor In its 

own name. 

SE TION 2. Each member of the Industry shall pay his or its 

equitable contribution to the expense of the maintenance of the 

Code Authority, determined as hereinabove provided, and ubj ct 

to rules and regulations pertaining thereto i ued by the Administrator. Only member of the Indu try c mplyin · with the ode 

and contributing to the expenses of its admini tration a her inaboYe 

provi led, unless duly ex mpted from making . nch ontributi ns, 

shall be entitled to participat in the el ction of member of the 

Cod Authority or to receive the benefits of an f it 'oluntar 

acti vi tie or to make u e of any emblen1 or in i ania of th N a ti nal 

Recovery Admini tration. 

SE TION 3. The Code Authority hall neither in tn· nor ay any 

obligation nb tantially in exc Rs of the am unt ther of a e:timat c1 

in its approved budget; and hall in no event xce 1 the t tal amount 
13 

contained in the approved budget except upon approval of the Administrator; and no ubs quent budget shall contain any deficiency 

item for expenditures in exce s of prior budget estimates except 

those which the Aclministrator shall have o approved. 

ARTICLE VIII-CosT FINDING AND AccouNTING 

The Code Authority shall au e to be formulated metho 1 of co t 

finding and accounting capable of u e by all members of the Indu try, 

and shall submit such methods to the Administrator for revi w. 

If approved by the Administrator, full infonnation concerning such 

methods shall be made available to all members of the industry. 

Thereafter, each member of the industry shall utilize such metho ls 

to the extent found practicable. Nothing herein contained shall be 

construed to permit the Code Authority, any agent ther of, or any 

member of the industry to suggest unifonn additions, percentag s 

or differentials or other uniform items of co t which are designed 

to bring about arbitrary uniformity of costs or prices. 

ARTICLE IX-CosTs AND PRICE CuTTING 

SEC'lTON 1. Pricing Practices : The standards of fair competition 

for the industry with reference to pricing practices are declared to 

be as follows : 

(a ) Wilfully destructive price cutting is an unfair method of 

competition and is forbidden. Any member of the industry or of any 

other industry or the customers of either may at any time complain 

to the Code Authority that any filed price constitutes unfair competition as destructive price cutting, imperiling small enterprise or tending toward monopoly or the impairment of code wages and working 

conditions. The Code Authority shall within 5 days afford an 

opportunity to the member filing the price to answer uch complaint 

and shall within 14 days 1nake a ruling or adjustment thereon. If 

such ruling is not concurred in by either party to the complaint, 

all paper._, shall be referred to the Research and Planning Division 

of NRA which shall render a report and r ecommendation thereon to 

the Administrator. 

(b) ¥!hen no declared emergency exists as to any given product, 

there is to be no fixed minimum basis for prices. It is intended that 

sound cost estimating methods should be used and that consideration 

should be givon to co ts in the determination of pricing policies. 

(c) \Vhen an emergency exi. ts as to any given product, ·ale below the stated minimum price of such product, in violation of Section 2 hereof, is forbidden. 

SE TION 2. Emergency Provisions : 

(a) If the A lmini tra.tor after investio·ation hall at any time 

find both ( 1) that an emergency has arisen within the inclu try 

adver. ely affecting small enterprises or wages or labor condition , 

or tending toward 1nonopoly or other acute con litions which tend 

to defeat the purposn of the Act; and (2) that th determination 

of the tatecl 1ninimum pri"e for a specified product within the industry for a limited period i nee sary to mitigat the conditions 

constituting such emergency and to effectuate the purposes of the 
14 

Act, the Code Authority may cause an impartial agency to investigate costs and to recommend to the Administrator a determination 

of the stated minimum price of the product affected by the. emergency and thereupon the Administrator may proceed to determine 

such stated minimum price. 

(b) \Vhen the Administrator shall have determined such stated 

minimum price for a specified product for a stated period, which 

price shall be reasonably calculated to mitigate the condition of 

such emergency and to effectuate the purposes of the National Industrial Hecovery Act, he sha:ll publish such price. Thereafter, during such stated period, no member of the Industry shall ell such 

specified products at a net realized price below said stated minimum 

price and any such sale shall be deemed destructive price cutting. 

From time to time, the Code Authority may recommend review or 

reconsideration or the Administrator may cause any determinations 

hereunder to be. reviewed or reconsidered and appropriate action 

taken. 

ARTICLE X-PRICE LISTS 1 

SECTION 1. \Vi thin thirty (30) days after the effective date of thi<:> 

Code, each member of the Indu try shall file with a confidential disinterested agent of the Code Authority a complete schedule inclividually prepared by hi1n of all his price lists, discounts, rebates, 

allowances, and all other terms or conditions of sale, hereinafter in 

this Article referred to. as " price terms " for his variou. classe of 

trade to become e.:ffective on date of receipt by such confidential 

agent. All new or revised price terms shall be filed with a confidential agent of the Code Authority and shall become effective on the 

tenth (lOth) day after actual receipt by such confidential agent. 

Immediately upon receipt thereof, such agent shall notify said member of the time of such receipt. 

When any membe.r of the Industry has filed any revision, such 

Jnember shall not file a higher price within forty-eight ( 48) hours. 

No member of the Industry shall sell or offer to sell any products 

of the Industry, for which price terms have been filed pur uant to 

the provisions of this Article, except in accordance with such price 

terms. 

No member of the Industry shall enter into any agreem nt, under-

.standing, combination or conspiracy to fix or maintain price terms, 

nor cau ~ or attempt to cause any member of the Indu try to change 

hi · price terms by the use of intimidation, coer ion, or any ther 

influence inconsistent with the maintenance of the free and open 

market which it is the purpose of thi Article to create. 

Copies of all filed price terms or revisions or parts th r of with 

notice of effective date thereof shall be ent simultaneou ·ly and 

immediately to all customers who have applied therefor and offered 

to pay the co t of prer aration and distribution, and to all member 

of the Industry who have prices filed; provi 1 d, however that uch 

mailing · to member hall cover only the ame la s of trade and 

include only price on the items on which the mail-rec i' ino- m mber ha filed. Said lists or revision or any part th reof . hall 

not be made available to any per on until relea eel to all m mbers 

1 See paragraph 2 of ord r appro0ving this Cod . 
15 

o:f the Industry and their customers, as aforesaid; p~ovided, ~hat 

prices filed in the fi~ t in.stance shall not be. r·eleased until the expiration o:f the aforesaid thirty (30) day penod after the approval of 

this code. The Colo Authority sl1all maintain a permanent file of 

all price terms filed as herein provide~, and shall not destroy a.ny 

part of such records except upon wntten. onsent of t~e Administrator. Upon request th Code Authonty shall furnish to the 

Administrator or any duly de ignated ag nt of the Administrator 

copies of any such lists or revisions or price terms. Any member of the Industry n'lay tile, if he so desires, revisions 

of his price terms to m et a lower filed price, which shall become 

effective on the date when the r evised list first filed becomes effective. 

All prices filed with the confidential agent of the Code Authority 

shall be available to all interested parties as each may be concerned. 

SECTION 2. In the case of inquiries for bids on a quantity of 

catalogued goods of one or more items large enough n1aterially to 

reduce the co t of manufacture and distribution, a manufacturer may 

file a special price for the specific quantity or quantities which the 

confidential agent of the Code Authority shall immediately forward 

to all manufacturers of the Article on I·ecord, stating size, quantity 

and price, but withholding the name of the party asking for the bid. 

The special price so filed is not to be quoted the customer until 

ten days after filing except that in case of e1nergency when ten days' 

delay in completing the transaction would be serious, the manufacturer by agreeing to accept billing for the telegrams resulting, may 

file by wire and request the confidential agent of the Code Authority 

to notify by wire in which case the price will be quotable on receipt 

of a telegram from said confidential agent that all manufacturers of 

the item or items have been notified by telegram. 

SECTION 3. If a manufacturer receives an inquiry or inquiries 

for goods to be made to buyers' special design, no filing of price 

shall be necessary but such goods shall not be sold below the filed 

price for a similar standard article or design if such price exists. 

If the article is not similar to a standard article or design, no price 

need be filed and no report made to said confidential agent. SECTION 4. Prices may be f.o.b. factory with full freight prepaid 

or allowed on shipm.ents of 100 lb . or more or on net amount of 

invoice of $25.00 or more. When the buyer specifies other than the 

cheapest freight route the increase in freight caused by h]s routing 

shall be added to the invoice for the n1aterial. Shipments by parcel 

post, express, or shipments by freight weighing less than 100 lbs. 

shall be f.o.b. shipping point with no freight allowed; except that in 

New York City any shipment, regardless of weights thereof, may be 

deliv reel to store door without charge. 

SECTION 5. Members, selling from warehouses at other than their 

point of manufacture, shall include in their prices a sum sufficient 

to cover all costs incident to such branch warehouse service. The 

provisions of this S ction shall not apply to boat oars and paddles 

or to life preservers, fenders or marine cushions. 2 

SECTION 6. Returned goods shall be credited to the purchaser 

thereof in full whenever the goods are returned because of error 

2 See paragraph 2 of order approving this Code. 
16 

or negligence on the part of the manufacturer, or defects in quality 

or workmansh!p or impaired credit. 

SECTION 7. Special goods made and shipped in compliance with 

order specifications shall not be returnable, except for defects in 

quality or workmanship or impaired credit. 

SECTION 8. Standard goods or special adaptations of standard 

goods shipped in accordance with customer's order are returnable 

but in no case except with freight prepaid and subject to a charge 

by the factory to retire any out~mng freight prepaid and/ or cost 

of reconditioning, if any, or handling. 

ARTICLE XI-UNFAIR TRADE PRAOTICES 

The following described acts shall constitute unfair practices. 

Any member of the Industry who shall directly or indirectly, through 

any officer, employee, agent or representatiye, use or employ any of 

such unfair practices shall be guilty of a violation of this Code: 

SECTIDN 1. To give, permit to be given or directly offer to give, 

anythin" of value, for the purpose of infi'uencing 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, princi.pal or party. This commercial bribery provision 

shall not be construed to prohibit free and general distribution of 

articles commonly used for advertising except so far as such articles 

are actually used for commercial bribery as hereinabove defined. 

SECTION 2. To continue to employ an employee or agent who splits 

with the buyer his commission or other compensation from the seller 

for the purpose of or with the effect of influencing a sale. 

SECTION 3. Knowingly withholding from or inserting in any quotation or invoice any statement that makes it inaccurate in any material particular. 

SECTION 4. Secretly offering or making any payment or allowance of a rebate, refund, commission, credit, unearned discount or 

excess allowance, whether in the form of money or otherwise, or 

secretly offering or extending to any customer any special ·ervice 

or privilege not extended to all customers of the same class, for the 

purpose of influencing a sale. 

SECTION 5. I ssuance of credit by a manufacturer for the return of 

unused products not produced or sold by said manufacturer. 

SECTION 6. Payment by a manufacturer of any part f the cost 

of periodical advertisements to be publi ·hed in the nam of a cu -

tomer, or customers, or payment for any part of any cataloo- or 

!-louse Organ published by a customer, either direct or by adv rti ing 

therein, which has the effect of secretly giYing the custom r a rebate 

refund, or di count on goods old to him, except that it shall be fair 

practice to loan cuts of manufacturer ' products t custom rs or to 

permit them to use without charge any pages of type left standing 

by a manufa turer with a print r. 

SECTION 7. Shipping product of the Industry on c nsio-nment 

except under circumstance to be lefin d by th Cod€ uthority wl re 

peculiar circum. tance. of the In lu. try r quire such practi e ubject 

to the approval of he A<.lmini trator. 
17 

SECTION 8. Selling or offering to sell any products of the Industry, 

except boat oars and paddles, under any form of guarantee against 

decline in price. 

SECTION 9. Wilfully inducing or attempting to induce the breach 

of existing contracts between competitors and their customers by any 

false or deceptive means, or interfering with or obstructing the performance of any such contractual duties or ervices by any such 

means, with the purpo ·e and effect of hampering, injuring or embarra sing competitors in their business. 

SEoTION 10. Branding or marking r packing any goods in any 

mannor which is intended to or does deceive or m.islead purchasers 

with respect to the brand, grade, quality, quantity, origin, size, substance, character, nature, finish, material, content or preparation of 

such goods. 

SECTION 11. Defaming a competitor by fal ely imputing to him dishonorable conduct, inability to p dorm contracts, questionable credit 

standing, or by other false repr sentation, or by falsely disparaging 

the grade or quality of his goods. 

SE TION 12. Publishing or circulating unjustified or unwarranted 

threats of 1 gal pro eedings which tend to or have the effect of harassing competitors or intimidating their customers. 

SECTION 13. Accepting an order or contract at a definite price, for 

an indefinite quantity or without a definite time limit at the expiration of which any un hippecl 1:.-ortion of the order shall be offered 

for shipment and invoicecl as if . hippecl. 

SEcTION 14. Can elling or permitting the cancellation of orders 

or unshipped portion· of orders for special goods or for specially 

large quantities of reo·ul:lr good., made in compliance with term or 

order, before securing from purchaser full payment for all costs 

incurred by the manufacturer in r lation to the unshipped portion 

an 1 a further payment on the shipped portion of an advance in price 

proportional to the increased cost of I roduction of the smaller 

quanvl +'t y. 

SECTION 15. To imitate or simulate the trade mark, trade name, 

package, wrapper, or label of n competitor's product to such a degree as to deceive or have a tendency to deceive customers. 

SECTION 16. Discrimination be1 'iYeen purchasers of the same definitjon by the sale of any article ha,ing a published price, at any 

price below the seller's publi ..,heel pri e by moans of direct or indirect 

price conces ions, or by means of any privileo·e not exten led to purchas rs generally, exc pt as provided in Arti 'le IX. 

SE TION 17. To give more favorable lisconnt Rncljor terms than 

the following, except boat oars and p ddles: 

(a) No more favorable terms than t-wo (2) 1 ercent discount shall 

be granted a customer on invoic s dated from the 1st to the 15th of 

any month, if payment is mailed or otherwise made by the 25th of 

the same month; or on invoice dated from the 16th to the end of 

the month, if payment is maile l or otherwi. e mado by the 10th of 

the next ucceeding month. 

(b) Term shall be net ca h 30 clay from disco mt date when 

cash discount is not tak n. 

(c) Except that ten days' additional time on all terms and di.--

counts under this Section may be allowed on shipments to or from 

the Pacific Coast or Alaska. · 
18 

(d) The rate of interest on all past-due invoices, or on any unpaid 

portions thereof, shall be not less than the legal rate of interest of 

the respective state in which the sale is made, from the due date 

of invoice until paid and shall be charged whenever a debtor has 

failed to pay for goods purchased within terms as set forth in the 

foregoing paragraphs of this Subsection, when said interest amounts 

to five ($5.00) dollars or more. 

SECTION 18. Granting more favorable discounts and/ or terms in 

the sale of boat oars and paddles than the following: 

(a) Two (2) percent discount for payment within ten (10) days, 

or payment in full within thirty (30) days of invoice, except that 

frequent buyers during any month may be allowed two (2) percent 

discount for payment on or before the tenth (lOth) of the following 

month. 

(b) In the Middle \iV estern States only, orders placed in the fall 

by large jobbers for ship1nent in January or February may be invoiced not later than April 1 and shall be payable not later than 

May 10 of the delivery year. 

(c) In the Pacific Coast States only, such shipments may be invoiced not later than February 15 and shall be payable not later 

than March 1 of the delivery year. 

(d) The rate of discount allowed on prepayment of invoices shall 

not exceed six (6) per cent per annum. 

ARTICLE XII-MONOPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XIII-MomFICA 'l'IONS 

SECTION 1. This Code and all the provisions thereof are expressly 

made subject to the right of the President, in accordance with provisions of Subsection (b) of Section 10 of the Act, from time to time 

to cancel or modify any order, approval, license, rule or regulation 

issued under said Act. 

SECTION 2. Such of the provisions of this Code as are not required 

to be included herein by the Act may, with the approval of the 

Administrator, be modified or eli1ninated in such manner as may 

be indicated by the needs of the public, by changes in circumstan es, 

or by experience. Such modifications or liminations may be ba ed 

on applications by the Code Authority or any m mber of the Industry. All the provisions of thi Code unles so modified or 

eliminated, shall r emain in effect until Jun 16, 1935. 

ARTICLE XIV-PRI E INCREASES 

\iVhereas the policy of the Act to incr ea e rea.l purchasing power 

will be made mor e difficult of con ununat ion if pric of g o l and 

services increase as rapidly a wages: it is r coo·ni.zed that 1 rice 

incr ease xcept su h as m.ay be r qn]r l to meet indivi ual osts 

should he delay d, but when made: uch incr a es hould, so far as 
19 

possible, be limited to act Hll additional Increases 1n the seller's 

osts. 

ARTICLE XV-EFFE TIVE DATE 

This Cost shall be effective at 12: 01 A.M. on the tenth (lOth) 

calendar day after its approYal by the Administrator and shall 

continue in effect until June 16, 1935, or the earliest date prior thereto on which the Pre ident shall by proclamation, or the Congress 

shall by Joint Re olution, declare that the emergency recognized in 

Secti01J. 1 of the National Industrial Recovery Act has ended. 

Approved Code No. 509. 

Registry No. 1114:--31. 

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