Approved Code No. 126 Registry No. 1033-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CHINAWARE AND PORCELAIN 

MANUFACTURING INDUSTRY 

AS APPROVED ON NOVEMBER 27, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

1. Eucutive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent or Documents. Washington. D.C. - - - • • • • • Price 5 cents 

II' 
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Approved Code No. 126 

CODE OF FAIR COMPETITION 

FOR THE 

CHINA WARE AND PORCELAIN MANUFACTURING 

INDUSTRY 

As Approved on November 27, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An application having been duly made, pursuant to and in full 

compliance with the provisions of title I of the National Industrial 

Recovery Act, approved June 16, 1933, for my approval of a code ·of 

fair competition for the chinaware and porcelain manufacturing in-

<lustry, and hearings having been held thereon and the Administrator 

having rendered his report containing an analysis of the said code of 

fair competition together with his recommendations and findings 

with respect thereto, and the Administrator having found that the 

said Code of Fair Competition complies in all respects with the 

pertinent provisions of title I of said act and that the requirements 

of clauses (1) and (2) of subsection (a) of section 3 of the said act 

have been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by title I of 

the National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, do adopt and approve the report, recommendations, and 

findings of the Administrator and do order that the said code of fair 

competition be and is hereby approved. 

Approval recommended: 

HuoH S. JoHNSON, 

.Adnninistrator. 

THE WHITE HousE, 

N()'l)em,ber !!7, 1933. 

FRANICLIN D. ROOSEVELT. 

(273) 

23775•-244-94-33 
The PRESIDENT, 

NOVEMBER 17, 1933. 

The White House. 

Srn: A public hearing on the Code of Fair Competition for the 

China ware and Porcelain Manufacturing Industry, submitted by 

the United States Potters Association and the American Vitreous 

China Manufacturers Association, was conducted in Washington on 

the 31st of August 1933 in accordance with the provisions of the 

National Industrial Recovery Act. These associations claim to represent seventy-five percent (75%) of the industry. 

The maximum hours permitted under this code are forty ( 40) per 

week. Watchmen and kiln firemen are allowed to work forty-two 

( 42) hours per week. In case of increased production, after using up 

all available labor, provision is made for an appeal to the Administrator to grant an extension of hours. 

The minimum wage is forty cents ( 40¢) per hour for male employees and thirty-two cents {32¢) per hour for females. Special 

provision is made that where females do the same work as males 

they shall receive the same pay. Learners, who shall not exceed five 

percent ( 5%) of the total number employed, are provided to be paid 

not less than eighty percent (80%) of the minimun1 wage for a three 

months' period. 

The industry is fairly well unionized and the wage rates for the 

skilled and semiskilled employees are fairly high. In face of the 

serious foreign competition it is questionable whether any great 

increase in labor costs will permit additional employment. In 

fact, any move along that line will tend to still further reduce 

employment. 

The aggregate invested capital in the industry is estimated at about 

forty million dollars in 1933, which represents a seventeeμ percent 

( 17%) decrease from forty-eight million dollars in 1928. Production dropped about twenty-two percent {22%) from 1928 to 1933. 

Sales dropped similarly, but much more severely, the 1933 sales 

representing about half of the 1928 figures. 

The drop in value of sales has been due not only to the depression 

but perhaps more to the competition from foreign countries. In 

spite of a tariff duty, foreign producers have lately been able to 

undersell domestic :prices because of lower labor costs and primarily 

depreciated currencies. Needless to say American exports are practically nil, for domestic producers cannot compete against the low 

foreign prices. 

FINDINGS 

The Administrator finds that : 

(a) The code, as recommended, complies in all respects with the 

pertinent provisions of title I of the act, including, without limita-

(274) 
275 

tion subsection (a) of section 7, and subsection (b) of section 10 

thereof; and that 

(b) The United States Potters Association and the American 

Vitreous China l\fanufacturers Association, the applicant groups 

herein, impose no inequitable restrictions on admission to membership and are truly representative of the Chinaware and Porcelain 

Manufacturing Industry. 

( c) The code as recommended is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate 

to discriminate against them, and will tend to effectuate the policy 

of title I of the National Industrial Recovery Act. 

This Industry has cooperated in a most satisfactory manner with 

the administration in the preparation of this code. From evidence 

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 its approval as herewith submitted is 

recommended. 

Respectfully, 

HUGH s. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

CHINAWARE AND PORCELAIN MANUFACTURING 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industry Recovery Act, the following provisions are submitted as a Code of Fair 

Competition for the Chinaware and Porcelain Manufacturing Industry, and upon approval by the President shall be the standard of 

fair competition for such industry and shall be binding upon every 

member thereof. 

ARTICLE II-DEFINITIONS 

(a) The term "Chinaware and Porcelain Manufacturing Industry" as used herein is defined to mean the manufacture of all properly glazed vitreous, vitrified, semivitreous or semivitrified china, 

tableware, kitchenware, dinnerware, and kindred lines, except sanitary, including all processes for the production of such commodities 

for general commercial resale; earthenware, stoneware, or clay flower 

pots, however, being hereby specifically excluded. 

(b) The term "ware" shall be understood to mean any product 

or merchandise manufactured by any member of the industry as 

defined in paragraph (a) above. 

(c) The term "employee" as used herein includes any person 

engaged in any phase of the industry in any capacity receiving compensation for his services, irrespective of the method of payment of 

such compensation. 

( d) The term " employer " as used herein includes any one by 

whom such employee is compensated or employed. 

( e) The term " me1nber of the industry " includes any one engaged 

in the industry, as above defined, either as an employer or on his 

own behalf. 

(f) The terms "Act" and "Administrator" as used herein shall 

mean respectively the National Industrial Recovery Act and the 

Administrator of said Act. 

ARTICLE III-HoURs 

{1) The maximum hours of labor for employees shall be forty 

( 40) per week, subject to the following limitat10ns and exceptions: 

(a) The average hours worked per week by an individual employee shall not exceed the maximum established when figured over 

a period of three ( 3) months, nor shall the daily maximum exceed 

eight (8) hours per day, nor the weekly maximum forty-four (44) 

hours in any one week; provided however that not less than time 

(276) 
277 

and one third shall he paid for all hours in excess of forty ( 40) per 

week, except as provided in paragraphs ( b), ( d), and ( e). 

( b) Watchmen and engineers may be employed in pairs and shall 

work thirty-six {36) and forty-eight (48) hours on alternate weeks, 

or not more than forty-two (42) hours per week averaged over any 

period of two weeks. 

(c) The maximum hours established shall not apply to executives 

or supervisory staff receiving thirty-five dollars ($35.00) per week, or 

more, nor to emergency repair crews or outside salesmen. 

( d) For a period of sixty ( 60) days after the approval of this Code 

by the President the maximum hours hereby established shall not 

apply to tunnel kiln firemen, but thereafter shall prevail, and their 

hours shall not be longer than forty-two (42) hours in any one week. 

Other kiln firemen may be employed in pairs and shall work thirtysix (36) and forty-eight (48) hours on alternate weeks, or not more 

than forty-two (42) hours per week averaged over any period of two 

weeks. It is expressly provided that all kiln firemen shall receive 

one and one third time for all hours per week over forty-two ( 42) 

when averaged as provided in this paragraph. 

( e) In the event of unusual conditions legitimately requiring an 

extension of hours, where it is impo~ible to meet the required production with the available supply of labor, or in the event that a 

reduction of hours is necessary to absorb existing unemployment, 

members of the industry, through the Code Authority1 may request 

the Administrator for such extension or reduction or hours other 

than those l?rovided in this Code, with such provisions for overtime 

as the Administrator may prescribe. 

ARTICLE IV-WAGES 

(a) The minimum wage that shall be paid by any employer in the 

Chinaware and Porcelain Manufacturing Industry shall be forty 

cents (40¢) per hour for males and thirty-two cents (32¢) per hour 

for females, except that where females do the same work, as is customarily done by males in this industry, they shall receive the same 

pay. 

(b) Employees who hire assistants and thus become employers in 

fact, shall pay not less than the minimum wage as herein provided. 

(o) Learnerst who shall have had no previous employment or 

experience in this industry, shall be paid not less than eighty percent 

(80%) of the minimum wage, and shall not exceed in any calendar 

month five percent ( 5% ) of the total number of employees of such 

employer. The learnin~ period for such learners is hereby limited to 

a three (3) months' penod. 

( d) All wages shall be paid in cash or by check of even date, within 

six (6) days after the completion of the work period, which period in 

no event shall be longer than sixteen (16) days. 

( e) It is the policy of the members of this Industry to refrain from 

reducing the compensation for employment which compensation was 

prior to June 16, 1933, in excess of the minimum wage herein set 

forth, notwithstanding that the hours of work in such employment 

may be reduced; and all members of this Industry shall endeavor to 

increase the pay of all employees in excess of the minimum wage, as 

herein set forth, by an equitable adjustment of all pay schedules. 
278 

ARTICLE V-GENEBAL LABOR PROVISIONS 

1. Employers in the Chin.aware and Porcelain Manufacturing 

Industry shall not have in their employ any person under the age 

of sixteen (16) years. 

2. 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 agent.s, 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. 

3. No employee and no one seeking employment shall be required 

as a condition of employment to join any company union or to 

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

his own choosing; and 

4. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, 

approved or prescribed by the President. 

5. Within each state this Code shall not supersede anv laws of 

such state imposing more stringent requirements on employer regulatin~ the age of employees, wages, hours of work, or general 

working conditions than under this Code. 

6. Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes of 

the Act. 

7. Each employer shall post and keep posted in cons_picuous places 

full copies of the wage and hour provisions of this Code. 

8. No employee shall work, or be permitted to work, for a total 

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

whether he be employed by one or more employers. 

9. If any employer of labor in the Chinaware and Porcelain Industry is also an employer of labor in any other Industry the provisions of this Code shall apply to and affect only that part of his 

business which is engaged in the manufacture of chinaware and 

porcelain, as herein defined. 

ARTICLE VI-.A»MINISTRATION 

To further effectuate the policies of the National Industrial Recovery Act, a Code Authority for the Chinaware and Porcelain 

Manufacturing Industry is set up to cooperate with the Administrator as a planning and fair practice agency for the China ware and 

Porcelain :Manufacturing Industry. 

1. Organization and Constitution of Code Authority. 

(a) The Code Authority shall consist of three (3) members nominated by the United States Potters Association; three (3) members 

nominated by the American Vitrified China Manufacturers Association, to be approved and appointed by the Administrator, and in 

addition thereto one (1) member to be nominated by the six (6) so 

appointed, who shall be approved and appointed by the Administrator, and not more than three (3) members, without vote, to be 

appointed at the discretion of the Administrator. 
279 

(b) Each trade or industrial association directly or indirectly 

participating in the seloction or activities of the Code Authority 

shall submit to the Administrator true copies of its articles of association, bylaws, regulations, and any amendments when made thereto, 

together with such other information as to membership, organization, and activities as the Administrator may deem necessary to 

effectuate the purposes of the Act. 

(a) 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 provide such hearings 

as he may deem proper; and, if upon such hearings, 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 deems necessary under the circumstances. 

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

to the extent permitted by the Act, subject to the right of the 

Administrator to disapprove or modify any action taken by the Code 

Authority, to make effective the provisions of this Code and thereby 

effectuate the purposes of the National Industrial Recovery Act. 

(a) The Code Authority, with the approval of the Administrator, 

shall have the power to require such reports from any member of the 

industry as may be necessary, provided, however, that all statistics, 

data, and information filed in accordance with this provision shall be 

confidential and the statistics, data, and other information of one 

employer shall not be revealed to any other employer except for the 

purpose of administering or enforcing the provisions of this Code. 

(b) The Code Authority, subject to the approval of the Administrator, may designate a Regional Committee for the Pacific Coast 

and may delegate to such Regional Committee such of its powers and 

authority as may be necessary for the Administration of this Code 

within that region, including the right to submit to the Administrator recommendations, applicable only to such region for amendments 

of this Code. 

3. No inequitable restrictions on admission to membership in the 

United States Potters Association, or the American Vitrified China 

Manufacturers Association, or any other trade association or organized group, participating in the activities of the Code Authority, 

shall be imposed, and any member of the industry shall be eligible 

for membership in any such trade association or organized. group, 

upon compliance with the provisions of the by-laws relating to membership, provided that any person applying for such membership 

shall, in addition to the payment of such dues as are imposed and 

paid by all other members, accept a reasonable and equitable share 

of the cost of code development and administration. Such men1bers 

of the industry who do not choose to become members of any trade 

association or organized group may J.>arlicipate in the activities of 

the Code Authority, as herein provided, by paying to the Code 

Authority such proportionate part of the cost of code development 

and administration as the Code Authority, subject to the Adminis• 

trator's approval, shall prescribe as fair and equitable. 

4. In addition to the information required to be submitted to the 

Code Authority there shall be furnished to government agencies such 

statistical information as the Administrator may deem necessary for 
280 

the purposes recited in Section 8 (a) of the National Industrial 

Recovery Act. 

ARTICLE VII-TRADE PRACTICES 

1. Discontinued items and seconds : 

( a j Discontinued lines of items may be disposed of in such manner 

and upon such terms as the Code Authorit1, shall approve; and if 

such approval authorizes a sale below cost 1t shall not be deemed a 

violation of this Code. 

(b) Semivitrified ware which ordinarily comes in the class of seconds, thirds, or lump, as these terms are understood by the trade 

when it is decorated shall be stamped and fired "second selection.'; 

This shall apply to all ware of this character whether decorated by 

the manufacturer or by any other person. 

2. The following practices constitute unfair methods of competition for members of the Industry and are prohibited : 

(a) No member of this Industry shall sell any products or merchandise ( except discontinued items as provided m section 1 (a) ) at 

less than his individual cost; provided, however, that he may sell 

below such cost in order to meet a competitive price or prices. 

(b) Omission from the invoice of any element of value in connection with the merchandise covered by the invoice, when the effect 

of such omission will be to reduce the total price of merchandise. 

(a) The payment or allowance of rebates1 secret or otherwise, refunds, commissions, credits, or unearned discounts, whether in the 

form of money or otherwise, or the extension to certain purchasers 

of special services, including special advertising allowances of any 

kind, or privileges not extended to all purchasers on like terms and 

conditions. 

(d) Delivered quotations which do not include freight ~d package charges. . (e) No member of the Industry shall ship goods on consignment 

except under contract or on bona-fide orders. 

(f) Copying of prints or decalcomania or hand-painted patterns, 

or shapes, of any American pottery of China manufacturers which 

is a new and original design, and not an adaptation of a foreign 

or domestic design. (This rule shall not apply to crests.) 

(g) To make false and misleading remarks or statements with 

regard to a competitor, his employees, product, selling price, business or financial standing. ( l) Maliciously inducing or attempting to induce the breach of 

an existing oral or written contract between a competitor and his 

customer or source of supply, or interfering with or obstructing the 

performance of any such contractuaJ duties or services. 

(i) To improperly or misleadingly use descriptive trade names 

or terms. 

(j) The making or causing or knowingly permitting to be made 

or published any false, materially inaccurate, or deceptive statement 

by way of advertisement or otherwise, whether concerning the grade, 

quality, guantity, substance, character, nature, origin, size, finish, or 

preparat10n of any product of the industry, or the credit terms; 

values, policies, or services of any member of the industry, or other-
281 

wise, having the tendency or capacity to mislead or deceive customers 

or prospective customers. 

(Ii:) Directly or indirectly to give, or permit to be given, or offer 

to give, money or anything of value to agents, employees, or representatives of customers or prospective customers, or to agents, employees, or representatives of competitors' customers or prospective 

customers, without the knowledg~ of their employers or principals, 

as an inducement to influence their employers or principals to purchase or contract to purchase from the makers of such oirt or off er, 

or to il).fluence such employers or principals to refrain from dealing 

or contracting to deal with competitors. 

(l) The offering or giving of prizes, premiums, or gifts in connection with the sale of products, or as an inducement thereto, by 

any scheme which involves lottery1 misrepresentation, or fraud. 

( m) The publishing or circularizing of threats or suits for infringement of patents or trade marks or of any other legal _proceedings not in good faith, with the tendency or effect of harassing competitors or intimidating their customers. 

( n) Securing confidential information concerning the business of 

a competitor by a false or misleading statement or representation, 

by a false impersonation of one in authority, by bribery, or by any 

other unfair method. 

( o) Nothing in this Code shall limit the effect of any adjudication 

by the Courts or holding by the Federal Trade Commission on complaint, finding, and order, that any practice or method is unfair, 

providing that such adjudication or holding is not inconsistent with 

any provision of the Act or of this Code. 

ARTICLE VIII-MomFICATION 

1. This {Jode 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 Title I of the National Industrial 

Recovery Act, from time to time to cancel or modify any order, 

approval, license, rule or regulation issued under Title I of said Act, 

and specifically, but without limitation, to the right of the President 

to cancel or modify his approval of this Code or any conditions 

imposed by him upon his approval thereof. 

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

included therein by the National Industrial Recovery Act, may, with 

the approval of the President, be modified or eliminated as changes 

in circumstances or experience may indicate. It is contemplated that 

from time to time supplementary provisions of this Code or additional conditions will be submitted for the approval of the President 

to prevent unfair competition in prices and other unfair destructive 

and competitive practices and to effectuate the other purposes and 

policies of Title I of the Wational Industrial Recovery Act. 

ARTICLE IX-MONOPOLIES, ETC. 

No provision of this Code shall be applied so as to permit 

monopolies or monopolistic practices, or to eleminate, oppress, or 

discriminate against small enterprises. 
282 

ARTICLE X-EFFECTIVE DATE 

This Code shall become effective on the tenth day after its 

approval by the President. 

ARTICLE XI-ADDENDA FOR VITRIFIED CHIN A BRANCH 

1. The following provisions shall apply only to the Vitrified 

China branch of the Industry: 

(a ) Each member shall use as a basis for his selling prices the 

uniform white list and decorated list as now in use by the majority 

of the industry or such lists, as they may be revised, at any future 

time by the association, with the approval of the Administrator; 

provided, howevPr, that nothing in this Code shall be construed as 

limiting the l?ercentages which members of this industry may extend 

to reduce or increase such prices quoted in the uniform lists, except 

as limited by Article VII, Section 2 (a). 

(b) Each manufacturer of Vitrified Hotel China shall, within 

fifteen (15) days after the effective date hereof, file with the Code 

Authority a price list and discount sheet, showing his current prices 

and discounts aHd terms of payments. Any revision of such price ·lists and discount sheets shall likewise be filed with the Code 

Authority and be effective ten (10) days thereafter. 

(a) No manufacturer of Vitrified Hotel China shall, directly or 

indirectly by any method whatsoever, sell any product of the industry covered by the provisions of this Article at a price lower or at 

discounts greater than or on more favorable terms of payment than 

on those provided in his current net price list or price lists and discount sheets; and upon learning of any deviation therefrom, the 

Code Authority shall notify any manufacturer who is selling at a 

price lower than as provided for in this Article, that his action is a 

violation and report · the same to the Administrato~ for such action 

as may be proper in the premises. 

( d) Terms of sale shall be one per cent ( 1 % ) fifteen ( 15) days, 

net thirty (30) days. With customers paying twice a month, one 

percent (1 % ) discount shall be allowed on purchases from the sixteenth to the thirty-first, if payment is made on or before the tenth 

of the following month. On purchases from the first to the fifteenth 

the same discount shall be allowed if paid for by the twenty-fifth 

of the same month. 

ARTICLE XII-CosT AccoUNTING SYSTEM 

1. The Code Authority shall prepare, or cause to be prepared, adequate cost accounting systems, capable of uniform application within 

each branch of the Industry, and such cost accounting systems, when 

approved by the Administrator, shall .be the standard for both 

branches of the Industry and no manufacturer may sell any of his 

products below his cost, as determined by the cost accounting system 

applicable to him, except as provided in Article VII, paragraphs 1 

(a) and 2 (a). 
283 

(a) Pending the adoption and approval of cost a~counting systems the Code Authority may call upon any member of either branch 

of the Industry for verified cost figures. 

Approved Code No. 126. 

Registry No. 1033-1-01. 

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