Approved Code No. 303 Registry No. 219-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CORDAGE AND TWINE 

INDUSTRY 

AS APPROVED ON FEBRUARY 21, 1934 

WE DO OUR PAR't 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 

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Approved Code No. 303 

CODE OF FAIR COMPETITION 

FOR THE 

CORDAGE AND TWINE INDUSTRY 

As Approved on February 21, 1934 

ORDER 

APPRO\'ING CoDE OF FAIR Col\rPETITION FOR THE CORDAGE AND TwrNE 

INDUSTRY 

An application having been duly made fursuant to and in :full 

compliance with the provisions of Title I o the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Code of Fair 

Competition :for the Cordage and Twine Industry, and hearings having been duly held thereon and the annexed report on said Code, 

containing findings with re::;pect thereto, having been made and 

directed to the President: 

NO"\V, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pur uant to authority vested in me by Executive Orders of December 

30, 1933, and otherwise; <lo 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 purpo e of aid Title of said Act; and do hereby order that said Code of 

Fair Competition be and it is hereby approved. 

ApproYal recommended: 

GEO. L. BERRY, 

HUGH 8. JOHNSON, 

Adniini.strator f 01· Industrial R ecovery. 

Division Adm,inist1·ator. 

,v A •rnxaToN, D.c., 

February fl, 1934. 

41825 °-376-117-34 (257) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

T lie White House. 

Srn: A Public I-Iearing on the Code of Fair Competition for the 

Cordage and Twine Industry, sub1uitted by the Cordage In titute, 

Jocatecl at 60 East 42nd Street, New York, N.Y., was conducted 

in "\Vashington the 1st of November, 1933, in accordance with the 

provi ions of the National Industrial Recovery Act. The Institute 

claims to represent approximately 70 percent of the Industry. 

The maximum hours permitted under this Code for productive 

employees and those engaged in accounting, clerical or office work 

are forty (40) per week; non-productive employees are permitted to 

work 44 hours per week with time and one-third for all hours worked 

by this class of employee in excess of 44 per week. 

The minimum wage is thirty cents ( 30¢) per hour in the South 

and thirty-two and a half cents (321⁄2¢) per hour in the North. 

The minimum rate or pay for office, accounting and clerical employees is fourteen dollars ($14.00) per week. Provision is made 

for an equitable adjustment of wages above the minimum. 

The value of cordage and twine has decreased approximately 48 

percent between 1929 and 1931, and it is probable that 1932 figures 

will show still further decrease. This decline has been partly due 

to lower prices and partly to the increase in imports. Imports of 

binder twine have increased from 19 million pounds in 1929 to over 

42 million pounds in 1932. There has been a considerable falling 

off in the demand of rope by the shipping trade, and until there is 

an upturn in world trade, there cannot be a stronger demand for 

rope from this source. 

On the basis of the 40 hour week it is estimated that e1nployment 

will be increased 19% and that there will be a 20% increase in payrolls. Unlilrn most industries the number of wage earners employed 

jn 1929 did not represent the peak of employment. Figures compiled show that between 1926 and 1929 employment declined approximately 20%. The decline has continued since 1929. In June, 

1932 only about 3,800 wage earners were reported but by June, 

1933 the number had arisen to around 4,050. 

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 proceeding in this n1atter; 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of ob tructions to the free fl.ow of interstate and foreign commerce which tend to diminish the amount thereof and will 

(258) 
259 

proYide for the general welfare by promoting the organization of 

indu try for the purpose of cooperative act10n among the trade 

group , by inducing and maintaining united action of labor and 

management under adequate governmental sanctions and supervision, 

by eliminating unfair competitive practices, by promoting the fullest 

po sible 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 industrial and 

agricultural products through increasing purchasing power, by re-

(lncing and relieYing unemployment, by improving standards of 

labor and by otherwise rehabilitating indu try. 

(b) aid Industry non1ially employs not more than 50,000 employee. ; and is not cla sified by me as a major industry. 

(e) The Code as approved complies in all respects with the pertinent proYision of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforesaid Industry; and that said assocjation imposes no inequitable 

restrictions on admission to membership therein. 

(cl) 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 enterpri es and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of said 

Code. 

This Industry has cooperated in a most satisfactory manner with 

the Administrator in the preparation of this Code. From eYidence adduced during this hearing and from recommendations and 

reports of the various Advisory Boards it is believed that this Code 

as now proposed and revised represents an effective, practical, 

equitable solution for this Industry and for these reasons this Code 

ha.s been approved. 

Respectfully, 

FEBRUARY 21, 1934. 

HUGH s. JOHNSON' 

Ad1ninistrator. 
CODE OF FAI R COMPETITION FOR T H E CORDAGE A.ND 

TWI NE I NDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National I ndustrial 

RecoYery Act, this Code is established as a Code of Fair Competition 

for the Cordage and Twine Industry and shall be the standard of 

fair competition for this industry and binding upon every member 

thereof. 

ARTICLE II- DEFINITIONS 

1. The term "United States" shall mean and include the fortyeight States, the District of Columbia, the territories of Alaska and 

Havi'aii, the Canal Zone, Puerto Rico and the Virgin Islands. 

2. The term " Cordage and Twine Industry " as used herein shall 

mean the manufacture, and/ or sale by manufacturers, within the 

United States, as defined in Section 1, of cordage, including cables, 

t arred or untarred, composed of three or more strands, each strand 

composed of two or more yarns and/ or cords and twines, including 

binder twines, tarred or untarred, single or plied, wholly or in chief 

Yal ue of Manila ( abaca) , sisal, henequen or other hard fiber, and 

cordage, twines and/ or ply and yarn goods, commonly known as 

tarred hemp goods, and such related branches or subdivisions as may 

from time to time be included under the provisions of this Code by 

the President of the United States, after such notice and hearings as 

he may prescribe. 

3. The term "employee " as used herein includes any and all persons engaged in the industry, however compensated, except a member 

of the industry. 

4. The term" member of the industry" includes, but without limit ation, any individual, partnership, association, corporation or other 

form of enterprise engaged in the industry, eit}:_ler as an employer or 

on his or its own behalf. 

5. The term " productive machinery" as used herein means and 

includes preparation, spinning, twisting, laying and/or finishing 

ma chinery. 

6. The term " unfair trade practice " as used herein means an 

unfair method of competition. 

7. The term "productive employees" as used herein, shall mean 

those employees engaged in the actual preparation, spinning, twist- ing, laying and/or finishing of cordage and/ or twine whether such 

work consists of manual work or operation of machinery. 

8. The term "non-productive employees" as used herein, shall 

mean all employees of this industry who are not included within 

the definition of productive employees. 

9. The term "Act" and "Administrator" as used herein, means 

respectively Title I of the National Industrial Recovery Act and 

the Administrator for Industrial Recovery. 

(260) 
261 

ARTICLE III-DIVISIONS 

1. The Cordage and Twine Industry shall be divided into the following Divisions: 

(a) Cordage, including tarred hemp goods. 

(b) 1Vrapping twine, including lath yarn and all ply and yarn 

goods, except binder twine. 

( c) Binder twine. 

ARTICLE IV-HOURS 

1. Except as hereinafter provided the houi·s of employment of all 

employees shall be as follows : 

(a) No non-productive employee engaged in accounting, clerical 

or office work and no productive employee shall be permitted to work 

in excess of forty ( 40) hours in any one week, except that any such 

employee may be employed forty-eight (48) hours in any one week, 

provided that his average employment :for any calendar quarter does 

not exceed forty ( 40) hours per week. Productive employees shall 

receive time and one-third for any work over forty ( 40) hours in 

any week. 

(b) No non-productive employee not included in above Subsection (a) ( such as repair shop crews, engineers, electricians, super-

·irisors, cleaners, oilers, firemen, shipping crews and/ or watchmen) 

shall be employed in excess of :forty-four ( 44) hours per week, except for emergency work hereinafter provided for, and any such 

work in excess of forty-four (44) hours per week shall be paid 

for at the rate of time and one-third. 

2. Non-productive employees may be employed overtime on emer- gency work, provided a report of such emergency work is made the 

first of each month to the Code Authority. 

3. The maximum hours provided shall not apply to employees en- gaged in an executive, n1anagerial or supervisory 'capacity, inside 

salesmen, clerical, accounting and office e.mployoos, any of_ whom receive thirty-five dollars ($35.00) per week or 1nore, nor to outside 

salesmen. 

4. No employee shall be permitted to work for a total number 

of hours in excess of the number of hours prescribed herein whether 

he be employed by one or more employers. 

ARTICLE v-,v AGES 

1. The minimum wage that shall be paid by members of the intlustry to any employee shall be thirty cents (30¢) per hour in 

Virginia, J orth Carolina, South Carolina, Georgia Florida, Alabama, Mississippi, Arkansas, Tenne see, Texas and Louisiana, and 

thirty-two and a half cents (321⁄2¢) per hour in all other States 

and the District or Columbia. 

2. The minimum rate of pay for office, accounting or clerical 

employees, shall be fourteen dollars ($14.00) per week. 

3. This Article establi hes a minimum rate of pay, regardle~s 

of whether an employee is compensated on ::t time-rate, piece-work 

per£ ormance or other basis. 

4. Every member of the inclu try hall increase the rate of pay of 

all employees paid either by the hour or piece, if not increased prior 
262 

to the effective date of this Code, and shall increase the rate of :pay 

for a.11 employees paid by the day, week or month, now receiving 

less than thirty-five dollars ($35.00) per week, if not increased prior 

to the effective date of this Code, to not less than ninety percent 

( 90% ) of the rates paid by said member of the industry, or his 

predece sor in business, fur the same class of work at the same 

place of bu iness in June, 1929, provided that no employee shall be 

paid less than the minimum fixed in this Code. All such increases 

made since June 16, 1933 shall be reported to the Code Authority 

to in ure that the prevailing rate for the same class of work in the 

manufacturing district in which the place of business is located shall 

goYern the application of this provision. Sixty (60) days after the 

effective date of this Code, the provisions of this Section shall be 

reviewed by the Administrator and revised in such manner as may 

in his opin10n be necessary to effectuate the purposes of the Act. 

ARTICLE VI-GENERAL LABOR PROVISIONS 

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

the Cordage and Twine Industry; nor any per on under eighteen 

(18) years of age at operations or occupations which are hazardous 

in nature or dangerous to health. The Code Authority shall submit 

to the Administrator 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 certificate or permit duly 

issued by the Authority in such State e1npowered to issue employment or age certificates or permits showing that the employee is of 

the required age. 

2. In compliance with Section 7 (a) of the Act, it is provided: 

(a) That employees shall have the right to organize and bargain 

collectively through representatives of their own choosing and shall 

be free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives or in 

self-organization or in other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection. 

(b) That no e1nployoo 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, and 

( c) That employers shall comply with the maximum hours of 

labor 1ninimum rates of pay, and other conditions of employment, 

approved or prescribed by the President. 

3. No provision in this Code shall supersede any law, State or 

Federal, which in1poses on employers more stringent requirements as 

to age of employees, wages, hours of work or general working condition than are imposed by this Code. 

4. o employer shall, for the purpose or with the effect of defeating the provisions of this Code, reclassify employees or duties of 

occupations performed as they existed on October 17, 1933. 

5. Each employer shall post and keep posted copies of Articles IV, 

V, VI and X of this Code in conspicuous places accessible to all 

employees. 

6. If any employer of labor in the Cordage and Twine Industry is 

al o an employer of labor in any other industry the provisions of this 
263 

Code shall apply to and affect only that part of his business which is 

engaged in the manufacture of cordage and twine, as herein defined. 

7. Temporarily and until further order of the Administrator, 

operation of productive machinery shall be limited to two forty (40) 

hour shifts per week. 

(a) The Code Authority niay grant exceptions to the above provision subject to review of the Administrator. 

ARTICLE VII-ADUINISTRATION 

ORGANIZATION AND CONSTITUTION 

1. A Code Authority is hereby established to cooperate with the 

Administrator in the administration of this Code and shall be chosen 

by the industry through a fair method of selection, approved by 

the Administrator, to serve for a period of one ( 1) year from the 

date of its selection. The Administrator in his discretion may appoint not more than three ( 3) additional 1nembers without vote, and 

without compensation from the industry, to serve for such period 

of time and to represent the Administrator or such group or groups 

ns he may designate. 

(a) Each trade or industrial association directly or indirectly 

participating in the selection or activities of the Code Authority 

shall impose no inequitable restrictions on membership, and shall 

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 necessary to effectuate 

the purposes of the Act. 

(b) 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 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, he may take such 

action as he may deem necessary under the circumstances. 

( c) Members of the industry shall be entitled to participate in and 

share the benefits of the activities of the Code Authority and to 

participate in the selection of the members thereof by assenting to 

and complying with the requirements of this Code and su.:;taining 

their reasonable share of the expenses of its administration. Such 

reasonable share of the expenses of administration shall be determined by the Code Authority, subject to review by the Administrator, on the basis of volume of business and/or such other factors 

as may be deemed equitable. 

2. The Code Authority shall have the following duties and powers 

to the extent permitted by the Act. 

(a) To administer the provisions of this Code and provide :for the 

compliance of the industry with the provisions of the Act, and to 

propose amendments, exceptions and/or modifications and submit 

them to the Administrator for his approval; such amendments and/ or 

modifications, when approved, shall become a part of this Code and 

have the same force and effect, as if originally incorporated herein. 

41825°-37G-117-34-2 
264 

(b) To adop by-laws an l rules and regulation for it procedure 

and for the administration and enforcement of the Code. 

( c) To obtain from memb rs of the industry nch information and 

reporb as are required for the a lministration of the Co<le and to 

provide for subn1ission by men1bcrs of uch infonuation and reports 

ns the Administrator 1nay deem neces ·,uy for the purpo e · recited 

in Section 3 (a) of the Act, which information and report shall be 

ubmitted by member to ·uch administratiYc and/ or government 

agencies as t11e Administrator may de ~ignate · provided that nothing 

in this Code hall relieve any members of the indu try of an., exi ting 

obligations to furnish reports to any government agency. Jo individual reports shall be di closed to any other member of the indu ·try 

or any other I arty except to such admini. tratiYe and/ or gm-ernmental agencies as may be directed bl the Admini trator. . ( d) To make economic studies o costs and ··elling pri es, with 

due regard to capital inve tments and other factor.·, and report to 

the Administrator the re ·ults thereof ,·vith such recommendation in 

comwction therewith as may in it opinion tend to effectuate the purpose of this Code. 

( e) To u ·e uch trade as ·ociation and other agencie as it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing- herein shall relieve the Code Authority 

of its duties or responsibilities under this Code and that uch trade 

a ociations and agencies shall at all times be . ·ubject to and comply 

,Yith the provisions hereof. 

( f) To make recommendations to the Administrator for the coordination of the administration of this Code with ueh other code~, 

if any,.as may be related to the industry. 

(g) To secure from members of the industry who participate in 

this Code or in the activities of the Code Authority such proportionate payment of the reasonable expen e of maintaining the Code 

Authority as may be determined by the Code Authority and a pproYed 

by the Administrator. 

(h) To cooperate with the dministrator in regulating the use 

of any N.R.A. insignia .'olely by tho e member of the indu, try who 

ha.ve as entecl to, and a.re complying with, this Code. 

(i) To recommend to the Administrator further fair trade practice provisions to govern members of the industry in their relations 

with Pach other or with other industries and to recommend to the 

Admini trator 1neasures for indn.-trial plannino- includinO' . tabilization of employment. 

(j) Each member of this inclu. ·try shall install and maintain an 

adequate co -t findino· method, approYed by the Code Authority and 

the Ad.mini trntor, in or ler that comparable co. t data for the entire 

industry may he an1.ilable for :uch purpo. 'e. a pro-vicle l by- this 

Code. 

(k) No 111.arrn.facturer in an)· Di,ision hall be required to fnrnish 

an information, data or report· not required of all other manufacturer in the same Divjsion except where sn h information, data 

or report · may be required in connection with an investi<Yation of 

an alleg cl violation of the Code. 

(I) If the Administrator ·hall cle.tennine that any action of a 

Code Authority or any agency thereof may be unfair or unju t or 
265 

contrary to the public intere t, the Administrator may require that 

. ·uch action be su pended to afford an opportunity :for investigation 

of the merit · of such action and further consideration by such Code 

Authority or agency pending final action which shall not be effective 

unles the Administrator approve or unless he shall fail to disapprove after thirty (30) days' notice to him of intention to proceed with nch action in its original or modified form. 

AHTICLE VIII-PRISON MADE PRODUCTS 

1. No member of thi · industry shall purchase for sale or resale, 

or ell or offer for sale, or otherwise distribute any cordage or twine 

manufactured or produced, in whole or in part, in any penal or 

reformatory institution, or produced or manufactured, in whole or 

in part, by prisoner , except prisoners on parole or probation. 

2. Pro,Tided, ho"·ever, that the provisions of Section 1 hereof shall 

not apply to any cordage or twine produced in any penal or reformatory institution in, or by the pri oners of a StatB of the United States 

which has entered into and is complying with and making effective a 

compact or a binding agreement of any other nature, which atisfies 

the Admini -trator that cordage or twine produced in whole or in part 

in such institution or by the inmates thereof (with the exception of 

cordage and twine produced by any prison solely for the use of tax 

npported institutions, agencies, departments or activities of any 

State or its political subdivisions) is manufactured, sold and distributed only upon a fair basi of competition with similar merchandise 

produced by private domestic industry, but otherwise Section 1 hereof 

shall apply to such prison-made products. 

3. The Code Authority shall promptly present to the Administrator all facts pertaining to the problem of convict-labor competition 

affecting the cordage and twine industry. 

AnTICLE IX-Pnoo CTIYE iL<\CHINERY 

1. Temporarily and until further order of the Administrator, no 

manufacturer engaged in the Cordage and Twine Industry, and no 

per on, partnership or corporation, for the purpose of engaging in 

the orclage and Twine Industry, shall purchase, manufacture, lease 

or otherwise obtain or use. productiYe machinery not owned, leased 

or otherwise held prior to the effective date of this Code, except by 

se ·nring a certificate from the Administrator, upon application 

throngh the Code Authority, certifying that the obtaining, manufacturing or u. e of ·uch additional productive machinery is consistent with effectuating the policy of the National Industrial Recovery 

... ct: nothing herein shall be construed as preventing the replacement 

of procluctfre machinery of eqnal or les productive capacity, existing on the effectiYe date of thi Code or the transfer of productive 

machinery from one nrnnufa ·tnrer to a subsidiary rnannfactnrer. 

AnncLE X-EYM,lON 

1. _._ .... o member of the inclu try shall engage in any ~nbterfuge for 

the purpo e or with the effect of <lefeating the provisions of this Code 

or the intent and purpose. of the Act. 
266 

ARTICLE XI-MonIFICA TION 

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

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

to cancel or modify any order, license, rule, or regulation issued under 

said Act. 

2. This Code, except as to provisions required by the Act, may be 

modifi€d, or amended, on the basis of experience or changes in 

circumstances, such modifications, or amendments, to be based upon 

application to the Adn1inistrator and such notice and hearing as he 

shall specify, and to become effective on approval of the President, 

unless otherwise provided. 

ARTICLE XII-MONOPOLIES, ETC. 

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

ARTICLE XIII-PRICE INCREASES 

1. Whereas th€ policy of the Act to increase real purchasing power 

will be made more difficult of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price 

increases except such as may be required to meet individual cost 

should be delayed, but when made such increases should, so far as 

possible, be limited to actual additional increases in the seller's costs. 

ARTICLE XIV-EFFECTIVE DATE 

1. This Code shall become effective fourteen (14) days after its 

approval by the Administrator. 

ARTICLE XV-SUPPLEMENTARY PROVISIONS 

1. The following schedules ( a and b, inclusive) are supplementary 

to, and constitute part of, the Code of Fair Competition for the 

Cordage and Twine Industry. Such schedules apply respectively to 

those particular Divisions of the Cordage and Twine Industry indicated by the specific headings. 

Approved Code No. 303. 

Registry No. 219-1-01. 
SCHEDULE "A" 

DIVISION FOR MANUFAOTURERS OF CORDAGE AND WRAPPING TWINE 

1. Fili.ng Pdce Irists.-(a) Each member of this Division of the industry, 

within five (5) days after the effective date of this Code, shall file and main• 

tain on file with the Code Authority, a schedule of prlces, together with revisions of same from time to time, as inclusive as the Code Authority, with 

the approval of the Administrator, shall determine. Each schedule shall 

show the selling prices for (1) cordage products made by such member, and 

(2) wrapping twine products made by such member. No member shall make 

any change in such selling prices except as otherwise provided herein. Each 

rnch schedule shall become effective on the date of receipt lJy the Code Authority. No price schedule of any memb~r of this Division shall b"e increased 

within a periOd of five ( 5) days after any decrease in such member's sched• 

ule. Such price schedules shall be available to anyone in interest. 

( b) No member of this Division shall sell, or offer to sell, any cordage or 

wrapping twine, directly or indirectly, at a price other than that specified 

in his current schedule on file with the Code Authority or modify the schedule by any subsequent concessions made either directly or indirectly, except 

that any member of this Division may deviate from such price schedule to 

meet actual competition on a comparable item, provided that he make immediate report of such deviation to the Oode Authority with such relevant 

facts as the Code Authority may require. 

2. Relationship of Gosts.-(a) The Code Authority, at such time and after 

such study as it may deem proper, shall recommend to the Administrator the 

relationship of costs and/or differentials; first, as to bolt rope, drilling cables, 

and transmission rope, and as to #1 and #2 Manila and #1 and #2 sisal 

cordage, as between and affected by grades, put-ups, sizes, special treatments 

and constructions (not patented) having a significant effect on costs and 

special sales conditions and arrangements; and second, as to all products 

included in R92-32, United States Department of Commerce Simplified Practice Recommendations, as between and affected by classes, sizes, put-ups, construction, varying treatments and construction (not patented), having a significant effect on cost and special sales conditions or arrangements. 

(b) The Administrator may approve, disapprove or modify these recommendations. 

( c) After approval by the Administrator no member of this Division F-:hall 

file a schedule of prices which does not conform to such relationship as her~ 

inabove provided in Section 2 <a). 

3. Trade Discounts, Gomni,issions, Allo,icances, Etc.-(a) The Code Authority, 

subject to the approval and with the advice of the Administrator, may from time 

to time arrange for conferences of all interested parties, including all clas::;es of 

secondary sellers, or the Code Authority governing them, for the purpose of 

recommending to the Administrator the establishment of such commissions, 

trade di counts and/or allowances which in its opinion, will be fair and reasonable in relation to the nature and extent of the distributing senices antl functions rendered by each buying class. 

( b) The Administrator may approve, disapprove or modify these recommendations. 

( ') After uch discounts, commissions and/or allowances shall haYe been 

approved by the Administrator upon such notice and hearing as he may deem 

neces ary, it shall be an unfair trade practice for any member to sell any product 

included in this division with a discount, commission or allowance in excess of 

those approved. 

(d) If the Code Authority recommend and the Administrator approves, the 

di count, commi sion and/or allowance of any secondary seller shall be 

decreased by any member, when to the knowledge of said member, the secondary 

seller allows any customer any di count, commis ion and/or allowance in excess 

(267) 
268 

of the discount, commission and/or allowance ap1woved by the Administrator 

as herein proYided for a customer of the same class. Tbe decrease in the discount, corumis Jon and/or allowance shall equal and not exceed the decrea e 

in the di count, commission or allowance given by said secondary seller to 

llis customer. 

(e) Members of this Division may appoint mill agents or distributor for 

the sale of first ; cordage to jobbers and wholesalers, or second ; wrapping twine 

to merchants and other retail sellers of wrapping twine, upon the. following 

conditions : 

(1) Where such mill agents or distributors agree to abide by the Code of 

Fair Competition for the Cordage and Twine Industry with re pect to the 

sale and distribution of cordage and wrapping twine. 

(2) Where said mill agent or distributor sells cordage or wrapping t'\'\'ine in 

a specified territory exclusively for the account of one member of this Division, 

except in cases where the member of the Division, supplying aid mill agent 

or di tributor, is unable to supply the nece sary -item or product. 

(3) Where said mill agent or dii:;tributor is exclusive with said member in 

the specified territory, which teritory shall not be less than the corporate 

limits of any city or town. 

(4) WhE!re (a) the billing is don~ by the member or (b) if the mill agent 

'->l' distributor does the billing, invoice shall include the name of the manufacturer of the product and copy of all invoices shall be sent on the first of 

each month to the manufacturer and commissions to mill agents or distributors 

sha 11 be based on said invoices. 

(5) Names of all mill agents and distr,ibutors shall be filed with the Code 

Authority and macle known to each and every member of the Cordage and 

Twine In lustry. 

(!) Nothing in this section shall be construed to abrido-e the right of manufacturers to sell direct to any customer in any territory or the right of any 

customer to buy direct from any member. 

4. Freight Oharges.-(a) The Code Authority shall recommend to the Administrator a zoning plan for freight charges, including drop shipment charge . (b) The Administrator may approve, disapprove or modify these recommendations. 

( c) Such plan when approved by the Administrator, shall remain in effect for 

six (6) months from the effective date of this Code or until changes are made 

in rnme by the Administrator or by the Code Authority with the approval of 

the Administrator. 

( d) No member of thi. Division shall sell or offer to sell any product of this 

division except in accordance with such plan when so approved. 

5. Terms and, Discounts.-(a) No member of this Division shall allow any 

cash discount in excess of two percent (2%), ten (10) days, thirty (30) clays 

net, from date of invoice, except upon authorization of the Code Authority. 

(b) No member of this Division shall make 01· give to any purchaser of any 

pr cluct any guarantee or protection in any form against decline in the market 

price of such product. · (c) No member of this Division shall elate any invoice of any cordage or ,,,rapping twine subsequent to the date of the shipment of such cordage or 

wn1pping twine, or include in any invoice any cordage or wrapping twine 

shipped on a date earlier than the date of such invoice. 

( d) No member of thi Division shall invoice any cordage or wrapping twine 

at priees which do not reflect the actual return to the seller. 

(e) No member of this Division shall settle any account except in exact 

accordance witb th term. and details of the invoice; nor directly or indirectly 

give rebdes, refunds or unfair credits or allowances, whether in the form of 

money or otherwi e. Thi. provision shall not apply to settlement with insolvent 

debtors. 

(f) Each member of this Divi ion shall show on his invoice and each copy 

thereof hi individual li t price, together with any discount, coromi . ion or 

de du tions allowed by him relative to the , ale covered by such invoice. 

6. Contractual Tcrms.-(a) No member of this Division shall sell or offer 

for sale nny ordnge or wrapping twine : 

(1) nle order is a companied by definite pecifications. 

(2) ~nle, s offer. to sell are subject to cl1ange, without notice, except offers 

to sc-11 to Fl.'deral, State or local goYerument , "·hich may be subject to 

a c:cptance within ten (10) days after opening of bids. 
269 

(3) Unless such offers to sell are for immediate shipment, except wh re sales 

for future delivery are (a) at a definite price with a definite hipping date; or 

(b) are without price, the price to be the member's price preYailing at time of 

shipment. ( 4) Except on a gross weight basis. 

( 5) Where the markings on the product or the invoice covering same show 

net weight or tare. 

(6) Where the product is not covered, protected or lashed in the u ual custom 

of the trade, as prescribed by the Code Authority with the approYal of the 

Administrator. 

(7) For the purpose of determining the observance of the above proYisions, 

copie. of all orders and invoices shall be made available to the Code Authority 

on demand. 

7. Price a1nd 001npetitive Practices Iw1l°-estigati<>n.-(a) The Code Authority 

shall in,estigate such prices and competitive practices as in its opinion tend 

to defeat the purposes of the National Industrial Recovery Act and shall then 

make its recommendations to the Administrator who may approve, modify or 

deny such recommendations. 

8. Si,mpli"fi,ed Practi,ce R ecommendation.-(a) No member of this Division . hall manufacture or cause to be manufactured, except as otherwise authorized 

by the Code Authority, subject to review by the Administrator, products included 

in the Wrapping Twine Division, on and after ninety (90) clays after the 

effectiYe date of this Code or sell, or offer to sell, any product which does not 

comt)ly with the provisions of Simplified Practice Recommendation R9Zr-32, as 

promulgated by the United States Department of Commerce, except as provided 

in Section 10 for the disposal of Distress Merchandise. 

(b) The Code Authority, with the approval of the Administrator, shall develop 

a simplified practice recommendation program for cordage, with the assistance 

of the Division of Simplified Practice of the United States Department of 

Commerce, which program shall be submitted to the Administrator as an 

amendment to this Code. 

(c) Upon the expiration of thirty (30) days after the effectiYe date of this 

Code, no member of this Division shall manufacture or cause to be manufactured products included in the Cordage Division or upon the expiration of six 

(6) months after the effective date of this Code, sell or offer to sell any such 

product, except as provided in this Section, or as otherwise provided by the 

Code Authority, or as provided in Section 10 of this schedule. 

(cl) Trade Designations : 

Becker 1·ef[ectance values 

Minimum Maximum 

Bolt rope _____________________________________________ _______ ___________________ _ 54 (1) No. I Manila, 23⁄4 cir. & larger_ _______________________ ________________________ _ _ 43 48 'o. 1 Manila, smaller than 2~~ cir ______________________________________________ _ 46 54 No. 2 Manila, 23⁄4 cir. & larger ______________________________ _____ ______________ _ 33 40 No. 2 Manila, smaller than 23⁄4 cir ___ ___________________________________________ _ 35 42 No. I Sisal (java & comparable fibers) (stainless) _______________________________ _ No. 2 Sisal (benequen and comparable fibers) (stainless) ________________________ _ 60 (1) 

40 48 

1 No limitation. 

( e) The term "Becker Reflectance Value" shall be defined and the tests fot• 

same hall be as provided in Federal Specifications T-R-601 for Manila Rope; ·u ·h te t :hall be made on samples with the oil extracted from same. 

(f) Nothing hereinabove shall be construed to prohibit the manufacture and 

sale of drilling cables, transmission rope, lariat, yacht products (yacht lariat), 

tarred hemp products, heart ropes, or specially treated ropes (where treatment 

di. colors the fiber permanently). 

( o-) Special treatment and special constructions of cordage shall be limited 

to No. 1 nnd higher grades of Manila. 

(h) When the Code Authority, with the approval of the Administrator, authorizes the manufacture of any product or products, not . pecially provided for 

herein, all members of this Division shall be provided with a copy of such 

changes. • 
270 

9. I<lentifi,cation.-(a) No member of this Division shall, sixty (60) days after 

the effective date of this Code, manufacture or cause to be manufactured, or, 

six ( 6) months after the effective date 01'. tbis Code, sell or offer for sale, any 

No. 1 or No. 2 Manila cordage and higher grades, or thirty (30) days after the 

effective date, sell or offer for sale any wrapping twine, without positive identification of manufacturer and grade, in such manner as the Code Authority mar 

determine, except as provided in Section 10. 

10. Distress niercharncUse.-(a) No discontinued, obsolete or di tres merchandi e, shall be sold by any member of tbi Divi ion, except upon approval 

by the Code Authority, which approval shall promptly be given unle the ~ale 

will re ·ult in unfair competition or otherwise not effectuate the purpo es of 

the Act, or as provided in Sections 8 and 9 of this Schedule, ubject to r riew 

by the Administrator, and such merchandise shall be clearly marked '' di continued", "obsolete" or "distress" merchandise on the invoice, order or other 

papers in connection therewith. All applications made hereunder to the 'ode 

Authority shall include a statement of the character of the goods inMlYed and 

the rea ons for the application. 

11. am,ples.-(a) No member of this Division shall give away free sample. 

of wrapping twine iu excess of ten (10) pounds or give away free sample· 

of cordage longer than ten (10) feet, except for specimens to be used for 

tensile strength tests. 

12. General Trade Practioes.-Tbe following constitute unfair method f 

competition and are prohibited: 

(a) No member of this Division shall procure, otherwi e than by con ... enc, 

any information concerning the bu ·iness of anot11er manufacturer whith i 

properly regarded as a trade secret or confidential within its organization, 

other than information relating to a violation of any pro,i ion of thi Code. 

(b) No member of this Division shall use or sub titute any material, 

superior or inferior in quality, to that pecified by the IJurCha er, or use or 

substitute any material or method of manufacture not in accord with any 

applicable law, rule or regulation of any goYernmental authority. 

(c) No member of this Division shall give, permit to be given, or indirectly 

offer to give, anything of value for tbe 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 ·uch agent 

or the represented :party without the knowledge of such employer, principal 

or party. Commercial bribery provisions shall not be construed to prohibit 

free and general distribution of articles commonly u. ed for advertising except 

. o far as ucb articles are actually used for commercial bribery a hereinabove 

defined. 

(d) No member of this Division shall cancel in whole or in part or permit 

the cancellation in whole or in part of any contract of sale, except for a fair 

con idera tion, or pay or allow to any purchaser in connection with any sale, 

any rebate, commission, credit, discount, adju tment or similar oncesNion 

other than as is permitted by the Code. 

(e) No member of this Division shall disseminate, publish or circulate 

any fal ~e or misleading in.formation relative to any product or price for any 

JW0t1uct of any manufacturer or the credit standing or ability of any manufacturer thereof to perform any "ork or manufacture or produce any product, 

or to the condition. of employment among the employees of any manufacturer 

thereof. 

(f) Xo member of this Division shall aid or abet any manufacturer in any 

uufair practice. 

(g) Tbe violation of any vrovision of this Oode hall be deemed an unfair 

method of competition. 

13. E.rports.-(a) No provision of this Code, relating to price or termis nt 

. elling, shipping or marketing, hall apply to export trade or sales or shiI)-

ments for export trade, but nothing in this ection shall be construed to include 

trade between tbe United States and its territories or pos e ions, within the 

meaning of tbe term "export trade". 

• 
SCHEDULE " B " 

DIVISION FOR MANUFAOTURERS OF BINDER ~INE 

FILING PRIOEJ SCHEDULES 

1. Every member of this Division offering Binder Twine for sale shall file 

with the Code Authority a schedule of prices and terms setting forth the graclt:>s 

and lengths per pound, prices per pound, or the prices per bale of fifty ( 50) lbs. 

gross weight, quantity discounts, terms and date of payment, date ancl amount 

of cash discount, and conditions of delivery; each such schedule shall set forth 

only one price of such member for each length of twine covered therein nnd 

the only lengths therein shall be, approximately five hundred (500) feet, fiye 

hundred fifty (550) feet, six hundred (600) feet and six hundred fifty (G50) 

feet to the pound. Such schedules shall represent the basis upon which Binue:: 

Twine is to be sold by members when selling to retail dealers. Such schedule 

shall also set forth full information as to all discounts allowed to purchasers. 

Such schedule, when filed with the Code Authority, shall become effective on 

the date filed and shall remain in force until a new schedule is filed and becomes 

effective. 

2. ·Copies of all schedules filed by manufacturers shall be 011en to exmnination, as the Administrator may determine, to parties in intere. t. 

3. The Code Authority, at such time and after such study as it may deem 

proper, shall recommend to the Administrator the establishment of a definite 

quantity (bales) of binder twine, the purchase of which for a season';-; requirement shall entitle the purchaser to a discount, from any individual manufacturer, equal to the discount allowed by said manufacturer to jobbers. The 

Administrator may npprove, disapprove or modify the recommendations. Pending such determination, each member shall file such discounts as he desires 

to malce applicable to any purchaser. 

4. No manufacturer shall sell, or offer to sell, Binder Twine, directly or indirectly, upon any other conditions than specified in his schedule as filed, nr 

as may be established under the provisions of Section 3 hereof, and no manufacturer shall modify the conditions of sale by any concessions, either directly or indirectly, made subsequent to any sale. 

(271) 

0 


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