Approved Code No. 356 Registry No. 1013-10 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

FULLER'S EARTH PRODUCING 

AND MARKETING INDUSTRY 

" ' 0-

AS APPROVED ON MARCH 23, 1934 

W£ DO OUR PART 

I 

i I 

UNITED STATES 

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WASHINGTON: 1934 

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Approved Code No. 356 

CODE OF FAIR COMPETITION 

FOR THE 

FULLER'S EARTH PRODUCING AND MARKETING 

INDUSTRY 

As Approved on March 23, 1934 

ORDER 

ArrRonNG ConE OF FAIR Col\fPETITIO:N FOR THE FULLER's EARTH 

PRODUCIXG AND MARKETING IKDUSTRY 

An a1 plication having been duly made pur uant to and in full 

compliance with the provi ion of Title I of the National Industrial 

RccoYery Act, approved June 16, 1933, for approval of a Code of 

Fair ompetition for the Fullers Earth Producing and Marketing 

Indu. try, and hearings having been duly held thereon and the annexed report on aid Code, containing the findings with respect 

thereto, ha-ving been made and directed to the President: 

NO\Y, THEREFORE, on behalf of the Pre ident of the United 

tate ··, I. Hugh S. J ohu on, A lmini trator for Inclu trial RecoYery, 

pur ·uant to authority vested in me by Executive Orders of the 

Pre ident, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwi ·e; do hereby in orporate by reference said 

annexed report and do find that said Code complies in all respects 

with the pertinent provi ions and will promote the poli y and 

purpo. e of aiel Title of aid Act; and do hereby order that said 

Code of Fair Competition be and it is hereby approved; provided, 

however, that the provi ions of Article VIII, (Section I) in o:far 

as they pre cribe a waiting period between the filing with the Code 

Authority and the effective date of revi ed price lists or revised 

term and condition of sale be and they are hereby tayed pending 

my further Or ler either within a period of ixty days from the 

effective date of this Code or after the completion of a study of 

open pri a... ciations now being conducted by the National 

Recovery Administration. 

Approval recommended: 

A. R. GLANCY 

HUGH 8. JOHNSON, 

Adm,inistrat01' for Industrial Recovery. 

Di,uision Admin· t1·ator. 

w A IIINGTON D.C. 

March B3, 1934. 

483010----42G-130----34 (377) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

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

Fullers Earth Producing and Marketing Industry, a hearing on 

which was conducted in Washington on the second of January, 

1934, and reconvened on the fifth of January, 1934, in accordance 

with the provisions o:f the National Industrial Recovery Act. 

PROVISIONS OF THE CODE AS TO WAGES AND HOURS 

This Code provides :for a maximum work week of forty hours as 

averaged over a six months period, :forty-eight hours in any one 

week, and a maximum working day of ten hours. Exceptions are 

provided for watchmen, who may work fifty-six hours per week, and 

for engineers, firemen, electricians and laboratory staff, who are 

limited in number and may work forty-eight hour per week. Limitations on working time do not apply to executives, managers or 

supervisors who earn not less than $35.00 per week, nor to travelling salesmen, nor to employees engaged in emergency maintenance 

or repair work; the latter class being paid at the rate of time and 

one-half for all time worked in excess o:f the basic maximum working limits. 

The Code provides :for minimum hourly rates of pay of 35 cents 

in the North, 30 cents in the intermediate zone, and 24 cents in the 

South. A provision is made for maintaining existing wage differentials. Clerical and office employees are to be paid not less than $15.00 

per week in the North, nor less than $14.00 per week elsewhere. 

No person under sixteen years of age may be employed, and no 

person under eighteen years of age may work at hazardous or unhealthy occupations. 

ECONOl\fiC EFFECTS OF THE CODE 

The Research and Planning DiYision e timates that there were 

about 1,013 employees in this Industry during 1933, and the Code 

Committee estimates that the 1932 invested capital '"'as $3,660,000 

with a production volume of about $1,360,000. · 

Under the existing low volume o:f production, the codal limits on 

working time will not be effective in spreading employment to any 

important degree. However, with any increase in business, the 

hourly and w~e~ly limits providec~ ~ill require additional employees. 

The codal m1n1mum wage prov1 ·wns represent a substantial increase over rates being paid before Augu. t first, 1933, and an increase 

over minimum rates in 1929. From available information it appears 

that codal weekly Incomes, despite horter hours worked, will be 

(378) 
379 

greater than th avera<r 1~L9 w ekly uH:om ' adju teLl to present 

purcha ·ing pow r. 

FL.~DINGS 

The A i tant Deputy Admini trator in his final report to m on 

aid Cod ha ing found a · herein set forth and on the ba ·i · of all 

the proce din o· · in thi matter ; 

I find that: 

(a) aiel Cod i well designed to promote the pollci s and purpo ·es of Title I of the National Industrial RecoYery Act, including 

removal of obstructions to the free flow of inter tate and foreign 

commerce which tencl 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 the trade groups, by 

inducing and maintaining united action of labor and management 

under adequate governmental sanctions and supervi ion, by eliminating unfair competitive practices, by promoting the fullest pos ible 

utilization of the pre ent productive capacity of indu trie ·,by avoiding undue re tri tion of production (except as may be temporarily 

required) 1 by increa ing the consumption of industrial and agricultural products through increasing purchasing power, by reducing 

and relieving unemployment, by improving standards of labor, and 

by otherwise rehabilitating industry. 

(b) Said Indu try normally employs not more than 50,000 employee ; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 71 and 

Subsection (b) of Section 10 thereof; and that the applicant association is an inclu trial a ociation truly representative of the aforesaid 

Industry; and that said association impo es no inequitable re trictions on admission to membership therein. 

(d) The Code i not designed to and will not permit monopolies 

or monopolistic practices. 

(e) The Code is not designed to and will not limina te or oppress 

small enterprises and will not operate to discriminate again. t them. 

(f) Tho e engaged in other teps of the economic proce haYe not 

been deprived of the right to be heard prior to approval of. ai 1 Code. 

For these rea ons, therefore, I have approved this Code. 

Respectfully, 

HuGH S. JoHNSON. 

Ad m.in itst ratm·. 

:MARCH 23, 1934. 
CODE OF FAIR COMPETITION FOR THE FULLER'S 

EARTH PRODUCING AND MARICETING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are e,stablished as a Code of 

Fair Competition for the Fuller's Earth Producing and Marketing 

Industry, and shall be the standard of fair competition for such 

industry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Fuller's Earth" means a natural claylike mineral 

substance used primarily in granular form for decolorizing or filtering oils and fats. 

2. The term "Industry" as u.sed herein includes the mining, 

and/ or manufacturing'-.--. and/or selling by those who mine andjor 

manufacture Fuller's ~arth as herein defined and such related 

branches or subdivisions thereof as may from time to time be included 

under the provisions of this Code by the President after such notice 

and hearing as he may prescribe. 

3. The term "Member of the Industry" includes any individual, 

partnership, association, corporation, or other person engaged in the 

industry, either as an employer or on his or its own behalf. In the 

case o,£ members of the industry comprising a complete or integrated 

unit in such industry, whether by stock ownership, affiliation or 

otherwi,se, such members shall be construed to mean a single unit or 

member and shall be so considered in the administration of this 

Code. 4. The term" Employee" as used herein includes any and all persons engaged in the industry, however compensated, except a 

member of the industry. 

5. The term" Employer" as used herein includes anyone by whom 

an-y such employee is compensated or employed. 

6. The terms "Act" and "Administrator" as used herein shall 

mean, respectively, Title I of the National Industrial Recovery Act 

and the Administrator for Industrial Recovery. 

7. The term "Period of free credit" means the period of time 

between the date of a shipment of a product to the purchaser and 

the date from and after which such purchaser shall be required to 

pay the purchase price of .such product. 

ARTICLE III-HouRs 

1. Except those employees who are specifically provided for elsewhere in this Article, no employee shall be permitted to work in 

excess of forty (40) hours per week averaged oYer a semi-annual 

(380 ) 
3 1 

p rjod, either from January first to June thirtieth or fr m July fir t 

to December thirty-fir t, and the maximum hour of work for any 

employee during any one week shall not xceed forty-eight ( 4 ) 

hours. Except tho e em ploy es pecifically provided for el ·ew here 

in this Article, no employee shall be permitted to work in exce of 

ten (10) hours in any twenty-four (24) hour period. 

2. 'Vatchmen shall not be employed mor than fifty- ix (56) hours 

in anv one week. 

3. Engineers, firemen, electricians and laboratory staff shall not be 

p rmitted to work in excess o£ forty-eight (48) hours in any one 

week; provided, however, that thi tolerance of workino- time in 

exce s of the hour provided in Section 1 of this Article shall apply 

to not more than ten percent (10%) of the total number of employees 

in any one plant, or to not more than four ( 4) employees in any one 

plant, whicheYer number is the greater in any case. 

4. No person employed in clerical or office work shall be permitted to work in excess o£ forty ( 40) hours in any one week. 

5. The provisions o£ this Article shall not apply to persons employed in any executive, managerial or supervisory capacity, or to 

technical assistant , who earn not less than $35.00 per week; or to 

traveling sale men. 

6. The maximum hours fixed in Section 1 of this Article shall 

not apply to any employee on emergency maintenance or emergency 

repair work involving break-downs or protection of life or property, 

but in any such case at least one and one-hal£ times his normal rate 

shall be paid for hours worked in excess o£ the maximum hours 

therein provided. 

7. No employer shall knowingly permit any employee to work for 

any time which, when totaled with that already performed with 

another employer, or employers, exceeds the maximum permitted 

herein. 

ARTICLE IV-MINIMUM wAGE 

1. No employee shall be paid at less than the hourly rate of thirtyfive cents ( 35¢) with the following exceptions: 

(a) In the States of North Carolina, Virginia, l{entucky, Arkansa , Oklahoma, Texas and Louisiana no such employee shall be paid 

at less than the hourly rate of 30¢. 

(b) In the States of Mississippi, Alabama, Florida, Georgia and 

South Carolina no such employee shall be paid at less than the 

hourly rate of 24¢. 

2. Rates of pay in excess of the minimum herein prescribed sha.ll 

be increased by a sum which shall at least maintain the differentials 

cxi ting on July fifteenth, 1933; and in no case shall hourly rat 

o£ pay be reduced. 

3. No employee in clerical or office work shall be paid less than at 

the rate of $15.00 per week, except that in the States specified in 

sub. ections (a) and (b) of Section 1 of this Article such employees 

shall be paid at the rate of not less than $14.00 per week. 

4. This Article e tablishes a minimum rate of pay, reo-ardle of 

whether an employee is compensated on a time rate, piece work or 

oth r basis. 
382 

ARTICLE V-GENERAL LABOR PROVISIONS 

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

the industry. No person under eighteen (18) years of age shall be 

employed at operations or occupations which are hazardous in nature or dangerous to health. 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 empowered to issue employment or age certificates or 

permits showing that the employee is of the required age. 

2. 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 protectien. 

(b) That no employee and no one seeking employment shall be 

required as a condition of employment to join any company union 

or to refrain from joining, organizing or assisting a labor organization of his own choosing. 

(c) 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 employer shall reclassify employees or duties of occupations performed, or engaged in any other subterfuge, for the purpose of defeating the provisions of the Act or of this Code. 

4. No provisions in this Code shall supersede any State or Federal 

law which imposes more stringent requirements on employers as to 

age of employees, wages, hours of work, or as to safety, health, sanitary or general working conditions, or insurance, or fire protection, 

than are imposed by this Code. 

5. No employee shall be required as a condition of employment 

to trade at a store owned or specified by an employer. 

6. Employees, other than maintenance, supervisory men or those 

necessary to protect property, shall not be required as a condition 

of employment to live in houses rented from or specified by the 

employer. 

7. All employers shall post and thereafter maintain complete 

copies of this Code in conspicuous places, easily accessible to 

employees. 

8. Every employer shall make reasonable provisions 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 six months after the effective date of this Code. 

ARTICLE VI-ORGANIZATION, PoWERs, AND DUTIEs oF THE CoDE 

AUTHORITY 

1. There shall forthwith be constituted a Code Authority consisting of four ( 4) members to be chosen by the Industry through a fair 

rneth?d of selection approved by the Administrator. 
3S3 

2. In addition to membership as above provided, there may be not 

more than three member , without vote, to be appointed by the 

Administrator to erve for a term of from six months to one year 

as specified in the order of appointment. Admini trative members 

shall be notified of, and may sit at all meetings of the Code 

Authority. 

3. In rder that the Code Authority shall at all times be truly 

repre entative of the Industry and in other respects comply with 

the provisions of the Act, the Administrator may prescribe such 

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

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

other respects comply with the provisions of the Act, may require 

an appropriate modification in the method of selection of the Code 

Authority. 

4. 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 election of the members thereof by as enting to 

and complyina with the requirements of this Code and sustaining 

their reasonable share of the expenses of its administration. Such 

reasonable share of the expenses of administration shall be determined by the Code Authority, subj ect to review by the Administrator, on the ba sis of volume of business andjor such other f actors as 

may be deemed equitable. 

5. Nothing contained in this Code shall constitute the members 

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

member of the Code Authority be liable in any manner to anyone 

for any act of any other member, officer, agent or employee of the 

Code Authority. Nor shall ~my member of the Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, 

be liable to anyone for any action or omission to act under this Code, 

except for his own willful misfeasance or non-feasance. 

6. The Code Authority shall have the following further powers 

and duties: 

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

provide for the compliance of the industry with the provisions 

of the Act. 

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

and for the administration and enforcement of the Code. 

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

reports as are required for the administration of the Code and to 

provide for submission by members of such information and reports 

as the Administrator may deem necessary for the purposes recited 

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

submitted by members to such administrative and/or government 

agencies as the Administrator may designate; provided that nothing 

in this Code shall relieve any member of the industry of any existing obligations to furnish reports to any government agency. No 

individual reports shall be disclosed to any other member of the 

industry or any other party except to such governmental agencies 

as may be. directed by the Administrator. 

(d) To use su h trade associations and other agencies as it eems 

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

herein, provided that nothing herein shall relieve the Code Authority 
384 

of it dutie or responsibilities under this Code and that such trade 

us ociation and agencies shall at all times be subject to and comply 

with the provisions hereof. 

(e) To make recommendations to the Administrator for the coordination of the administration of this Code with such other 

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

(f) To secure from members of the industry an equitable and 

proportionate payment of the reasonable expenses of maintaining 

the Code Authority and its activities. 

(g) To cooperate with the Administrator in regulating the use 

of any N.R.A. insignia solely by those members of the industry who 

have assented to, and are complying with, this Code. 

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

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

Administrator measures for industrial planning, including stabilization of employment. 

7. The Code Authority may recommend modification of, or amendments to, this Code, which shall become parts of this Code upon 

approval by the Administrator, after such notice and hearing as he 

shall prescribe. 

8. If the Administrator shall determine that any action of the 

Code Authority or any agency thereof may be unfair or unjust or 

contrary to the public interest, the Administrator may require that 

such action be suspended to afford an opportunity for investigation 

of the merits of such action and further consideration by such Code 

Authority or agency pending final action, which shall not be effective 

unless the Administrator approves or up.less he shall fail to disapprove after thirty days notice to him of intention to proceed with 

such action in its original or modified form. 

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

Code Authority, members of the industry shall furnish to such 

Federal and State agencies as the Administrator may designate, 

such statistical information as the Administrator may deem necessary 

for the purposes recited in Section 3 (a) of the Act, and nothing in 

this Code shall relieve any person of any existing obligation to furnish reports to Government agencies. 

10. An appeal from any action by the Code Authority affecting 

the rights of any employer or employee in the industry may be taken 

to the Administrator. 

ARTICLE VII-TRADE PRACTICE Rms 

The following shall constitute unfair competition and a violation 

of this Code: 

1. For any member to sell or offer to sell any product of the industry at a price below his own cost of production as determined on the 

basis of a cost accounting system approved by the Code Authority 

and subject to approval by the Administrator; provided, however, 

any member may sell at less than his cost to meet the price of a 

competitor. This paragraph shall not apply to any product pr9-

duced a a byproduct in the manufacture of standard granular 

grades. 
385 

2. To give secret rebate , refunds, credit , un arned discounts, 

whether in the form of money or otherwi e, or to exten to any purcha ers services or privilege not extended to all purchasers under 

like terms or conditions. 

3. No member of the indu try shall give, permit to be given, or 

directly offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent or representative of another in relation to the business of the employer of such 

employee, the principal of such agent or the represented party, without the knowledge of such mployer, principal or party. This provision hall 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. 

4. To make or cause or permit to be made or published any false 

or deceptive statement concerning the grade, quality, quantity, substance, character, nature, origin, size or preparation of any product 

of the industry having the tendency to mislead or deceive purchasers 

or to affect injuriously the business of competitors. 

5. To sell or offer to sell any grade of product contrary to screen 

standards which may be established by the Code Authority subject 

to approval of the Administrator. 

6. To make an allowance for sifting in excess of two pounds per 

bag of a minimum shipping weight of 120 pounds and proportionately less for bags of smaller content. 

7. To allow a rebate for bags returned different from the price 

originally charged or to allow freight on returned bags. 

8. To extend a period of free credit in excess of thirty (30) days; 

provided that a. member of the industry may offer credit terms to 

customers buying at intervals during the month, permitting payment on or before the fifteenth day of the month subsequent to that 

in which shipment is made. 

9. Every member of the industry shall insert a provisiOn in all 

contracts made by him for operating work in connection with mining andjor manufacturing Fuller's Earth within the industry, 

whereby the contractor agrees that he or his subcontractor shall be 

subject to the labor provisions of this Code. 

ARTICLE VIII-PRICE LISTS 

1. Each member of the industry shall within ten (10) days after 

the effective date of the Code file with the Code Authonty and with 

the Administrator, if required, a list of its selling prices and discounts, if any are allowed, for its various grades, which shall become 

effective on the date of filing thereof. None of the prices or discounts hown in any list filed by any member of the industry, as 

herein provided, shall be chano·ed, except by filing by such member 

with the Code Authority a new list of his prices and di counts to be 

changed, which hall become effective on the effe ti"'i e date therein 

specified which date shall be five days after the late on which such 

new li t hall have been file ; provided however that any member 

may file with the Cod Authority a re i ed li t to m et lower price , or higher discounts, or both, of a competitor, which revi ed list may 
386 

becomr t'ffe ·tiye on the same elate that the competitor's revise l list 

b come · ffectiYE'. List of price. · nn<l eli counts filed with the Code 

Authority ·hall be open io in pection by any interested person.* 

AnncLE IX-l\fo::NOPOLIEs 

1. No prov1 ·wn of this Code , hall be o applied a to permit 

monopolies or monopoli tic practice ·, or to eliminate, oppress, or 

di ·criminate ao-u.in t small enterprises. 

ARTICLE X-AMENDMENTS 

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

subject to the right of the President, in accordance with the provisions of Section 10 (b) of the National Indu trial RecoYery Act, 

from time to time to cancel or modify any order, approval, license, 

rule, or regulation, issued under Title I of aid Act, and specifically, 

but without lin1itation, to the right of the President to cancel or 

modify his approval of this Code or any con litions jmpo eel by him 

upon his approval thereof. 

2. Thi Code, except a to the prov1s1ons required by the Act, 

may be modified on the basis of experience or change in circumstances, such modifications to be ba eel upon application to the Administr ator, after such notice and hearing a he shall specify, and 

to become effective on approYal of the Administrator. 

ARTICLE XI-EFFECTIVE DATE 

1. This Code shall become effective seven (7) days following its 

approval by the President. 

Approved ode No. 356. 

Registr y No. 1013-10. 

• See paragraph 2 of order approving thls Code. 

0 



UNIVERSITY OF FLORIDA 

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