Registry No. 1218-10

NATIONAL RECOVERY ADMINISTRATION

PROPOSED CODE OF FAIR COMPETITION

FOR THE

FLUORSPAR INDUSTRY

AS SUBMITTED ON SEPTEMBER 2, 1933

ME 

R

MOS

WE DO OUR PART

The Code for the Fluorspar Industry

in its present form merely reflects the proposal of the above-mentioned

industry, and none of the provisions contained therein are

to be regarded as having received the approval of

the National Recovery Administration

as applying to this industry

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1933

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TENTATIVE DRAFT OF CODE FOR THE FLUORSPAR

INDUSTRY, AUGUST 25, 1933

This code is submitted by producers of fluorspar in Illinois and

Kentucky, these two States heretofore having produced more than

90% of all the fluorspar mined in the United States.

ARTICLE I-PURPOSE

This code is offered pursuant to Title I of the National Industrial

Recovery Act, and the purpose of the code is to effectuate the policy

thereof.

ARTICLE II--DEFINITIONS

Industry. "-The lining, milling, and sale of fluorspar throughout the United States.

"Person. "-An individual, partnership, association, or corporation.

"Products. "-Fluorspar in any form.

"Producer. "-Any person engaged in mining, milling, or selling the

products of the industry.

ARTICLE III-MAXIMUM IouRS AND MINIMUM WAGES

(1) After the effective date of this code, no producer shall employ

any worker under sixteen years of age and shall comply with all laws

of his State with respect to child labor.

(2) After the effective date of this code, no producer shall work any

accounting, clerical, office, service, or sales employees (except outside

salesmen) in any office or department for more than forty hours in

any one week.

(3) After the effective date of this code, no producer shall employ

any factory or mechanical worker or artisan more than a maximum

week of forty hours and shall not employ any worker more than eight

hours in any one (lay.

(4) The maximum hours fixed in the foregoing paragraphs (2) and

(3) shall not apply to employees in a managerial, executive, advisory,

or technical capacity, who now receive more than $35 per week;

nor to employees on emergency, maintenance, and repair work; nor

to very special cases where underground mining crews are working

in difficult or unusual mining conditions where knowledge of these

conditions and of the peculiarities of the ground is highly desirable

and where employment of substitute crews is not practical and where

a limitation on the hours of work would unavoidably reduce production and employment; provided that no such underground mining

crew shall be worked more than a maximum of eight hours in any one

day or forty-eight hours in any one week.

(5) It is agreed not to pay any of the classes of employees mentioned

in paragraph (2) less than $15 per week in any city of over 500,000

10198-33 (1)
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population, or in the immediate trade area of such city; not less than

$14 per week in any city of between 2,500 and 250,000 population, or

in the immediate trade area of such city; and in towns of less than

2,500 population, to increase all such wages by not less than 20%,

provided that this shall not require wages in excess of $12 per week.

(6) It is agreed not, to pay any employee of the classes mentioned

in paragraph (3) less than 35$ per hour, unless the hourly rate for the

same class of work on July 15, 1929 was less than 350 per hour, in

which case, to pay not less than the hourly rate on July 15, 1929, and

in no event less than 250 per hour. It is agreed that this paragraph

establishes a guaranteed minimum rate of pay, regardless of whether

the employee is compensated on the basis of a time rate or a piecework performance.

ARTICLE IV-LAABOR RELATIONS

(a) Employees in the industry shall have the right to organize and

bargain clectiv-ely through representatives of their own choosing,

and shall be free from the interference, restraint, or coercion of eiiplovers 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) No employees, and no one seeking employment in the industry

shall be required, as a condition of employment, to join any company

union or to refrain from joining, organizing, or assisting a labor

organization of his own choosing.

(c) Employers in the industry shall comply with the maximum

hours of labor, minimum rates of pay, and other conditions of employment approved or prescribed by the President.

(d) It is the interpretation of the foregoing provisions that the

emj)lovees in the induistry shall be protected from interference,

restraint, or coercion from their employer and from any other person,

in the determination of their relations with their employers, and that

neither eij)loyers nor employees ire req nired thereby to waive, surrender, or impair any of their constitutional rights.

(e) It is the interpretation of the foregoini paragraphs that nothing

therein impairs the joint rigit of employer and employee to mutually

maintain operating conditions "where any man who is competent

and whose services are desired will be employed regardless of'" all

other questions.

ARTICLE N-OPEN PRICE POLICY

The Joint Recovery Committee of the fluorspar industry shall have

authority to establisll and operate an open price policy.

ARTICLE XI--ADMINISTRATION

(a) A Joint Recovery Committee has been set up, which consists of

four representatives, two of whom have been chosen by 1)roduicers in

Illinois, and two by producers in Kentucky. The President, or anyone with authority from him, may name two additional members of

the Committee, such members to have no vote but in all other respects to be members of the Joint Recovery Committee.
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(b) The two representatives of the producers in Illinois shall be

named by a majority vote of the Illinois producers and, in case of a

vacancy, a successor to either may be elected by a similar vote. The

two representatives of the producers in Kentucky shall be named by

a majority vote of the Kentucky producers and, in case of a vacancy,

a successor to either may be elected by a similar vote.

(c) The right to vote for representatives from Illinois shall be confined to those producers who have operations in Illinois, and who

shipped in the period from January 1, 1930, to June 30, 1933, not

less than 100 net tons in a single calendar year, or who had in stock on

.June 30, 1933, not less than 100 net tons. The right to vote for representatives from Kentucky shall be confined to those producers who

have operations in Kentucky and who shipped in the period from

January 1, 1930, to June 30, 1933, not less than 100 net tons in a single calendar year, or who had in stock on June :30, 1933. not less than

100 net tons.

(d) Each producer entitled to vote may cast one vote, and, in

addition, as many votes as equal his total shipments for such period

and his stock on June 30, 1933, divided bv 500, ignoring any fraction

provided, however, no producer who shipped during such period in

excess of 26,000 tons shall be entitled to include such tonnage on

hand on June 30, 1933, in deterinining the amount of votes to be cast.

If any question is raised as to the right of any producer to vote or as

to the mnber of votes which may be cast, such producer shall file

a certificate with his vote, signed by him, setting forth the number

of net tons shipped by him in each calendar year in said period and

his stocks, as above defined. Any false statement in such certificate

shall constitute a violation of this code. Any producer may cast all

his votes for one representative, or divide such votes between two

representatives in such proportions as he determines. Any such election may be evidenced by a written instrument, signed by a majority

vote of the producers in the particular state, determined as above

indicated.

(e) The Joint Recovery Committee shall have the powers listed

below:

(1) To administer the provisions of this code;

(2) To adopt rules and regulations for the enforcement thereof;

(3) To entertain and hear complaints against any producer arising

out of alleged violation of this code or of the National Industrial

Recovery Act;

(4) To initiate proceedings before the appropriate governmental

agencies to prevent and/or punish violations of this code:

(5) To obtain from time to time from each producer reports in such

form and containing such information as the Joint Recovery Committee may prescribe, in order that the President may be kept informed with respect to the observance or nonobservance of this code,

and as regards the compliance by the industry with the policy and

provisions of the National Industrial Recovery Act. To this end the

Joint Recovery Committee shall be empowered to appoint a Confidential Agency, outside the industry, which Agency shall have access to

all places of business maintained by any producer, and may examine

any pertinent records. Producers shall furnish such statistics as are

requested by the Joint Recovery Committee for the purposes stated

above.
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(6) To prepare a uniform sales contract for the use op

The deletion or changing of any of the provisions thereof 

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unfair trade practice, and a violation of this code.

(7) To make such surveys, compile such reports and 

recomiimendations as they may deem proper and for the b

of the industry and the purchasers of its products.

(S) To require all producers to furnish a weekly certified r

he has complied with the provisions of this code, toge

;tatement of tonnage sold except captive tonnage, deliver

average price of each grade as classified by this Committee

orders, and stocks on hand. Provided, however, that an

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customarily producing and shipping any particular grade 

and who has complied with the provisions of this code, shal

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to receive from the Joint Recovery Committee copies of 

tion collected by the Committee pertaining to such g

failure of a producer to furnish the information or file 

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provided by this paragraph, and by paragraph (5), shall be 

of this code.

(9) To consider proposals for amendments to this c

submit such proposals to the proper Federal agency.

(10) The Joint Recovery Committee shall keep records 

ings., and may employ the necessary assistants to colle

tribute information and reports, and to perform any o

herein provided. Such Committee may act by a vote of a

voting members, either at a meeting, or evidenced bv a w

ment properly signed. Such Committee may elect officer

rules for its own procedure.

ARTICLE NII-ADMINISTRATION EXPENSE

The cost of administration of this code shall be borne o

pr

basis by all producers of fluorspar, whether they have expres

to the provisions of this code or not. The amount of 

from time to time shall be established by the Joint Rec

mittee. It shall not, however, exceed a reasonable amo

purpose of collecting and dissemilnating the information p

the preceding Article and in the performance of its duties 

therein. In no event, however, shall the members o

J

Recovery Connittee be paid any compensation for th

but they shall be entitled to be reimnbursed any expens

Any such assessment shall be distributed among the varioup

in the same proportions as their respective total shipm

twelve months' period preceding the month in which no

a~sssmeIt 1s issued, and each producer, oni request by the 

shall furnish a statement of his shipments for such period: p

asse sent shall be levied on any producer who has shipp

within code. 500 the producers net At twenty tons least during for days onee all said each money after period. six notice collected and months Failure thereof theCommittee to shall expended. pay be any a such violshal
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ARTICLE VIII-TRADE PRACTICE RULES

The following paragraphs (1) to (11), inclusive, are a stateme

unfair trade practices which are condemned. These, together w

other practices which may be declared unfair by the Joint Rec

Committee, shall be deemed to be unfair methods of compet

and the employment of any such practice shall be a violation 

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code.

(1) Consciously shipping a lower grade of material than a

p

mitted in the contract or order.

(2) Cancelling in whole or in part,, or permitting the cancel

of any contract for the sale of any product, except for a fair c

sideration, or paving or allowing to any purchaser in connection w

the sale of any product, any rebate, commission, credit, disc

adjustment, or similar concession, or other than is permitted b

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Code and specifically included in the contract of sale.

(3) Inducing or attempting to induce the breach of a contract

or written, between a competitor and his customer, or the solici

of business from a customer with knowledge that acquiescence th

by the customer would violate a contract with a competitor.

(4) The use of any corporate or other name which is no

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recognized name in which the producer openly operates in th

trict in which lie is operating, or the attempt to sell fluorspar frot

same operation under several different names.

(5) To quote on the same inquiry to the same customer t

different names, or through more than one agent; or to quote ot

same inquiry to the same customer directly under any name

also through an agent.

(6) While there is in existence an exclusive sales arrange

between a producer and a sales agent, for such producer t

through any other agent without the consent of such exc

agent.

(7) Attacking a competitor by making false or misleading ch

as to his reputation, financial standing, or ability to serve the t

(8) To make any contract with any purchaser whereby the p

chaser is to be protected against a decline in price, except so f

such protection may be limited to prices quoted on imported fluo

(9) To sell, or attempt to sell, through more than one 

except with the full knowledge of each agent.

(10) Making or promising to any purchaser or prospective p

chaser of any product, or to any officer, employee, agent, or r

sentative of any such purchaser, any bribe, gratui ty, gift, or 

payment or remuneration, directly or indirectly. (11) Procuring, otherwise than with the consent of any mem

the Code, any information concerning the business of such me

which is properly regarded as a trade secret or as confidential w

its been thae importations the For organization, percentage code. one gradually the third pastamounted fifteen of has ARTICLE increasing, other the recently total yers than to IX-FoREIGN 82% domestic and thebeen relating importations of for higher, the seven to consumption. domestic a COMPETITION and violation years have of in consumption foreign one of In grade any averaged certain fluorspar povisin altl 193ghmti
UNIVERSITY OF FLORIDA

6 1I1till11ill 1111hI111 I

3 1262 08582 8944

the domestic producers were able to supply all domestic requirements.

In this competition the domestic producers are compelled to compete

with the cheap labor and long hours in vogue in Germany, France,

Italy, Spain, South Africa, and China. Furthermore, in the principal

competing country, fluorspar is being sold for exportation to the

United States at lower prices than is charged for the same grade of

fluorspar for consumption in such competing country.

About April 1, 1933, representatives of the United States Tariff

Commission completed an exhaustive investigation of the cost of

production and conditions in the United States and in the principal

foreign competing countries, and it is understood that the report is

ready for submission to the Tariff Commission.

In accordance with the provisions of Section 3 (e) of the National

Industrial Recovery Act, the producers request that the President

cause an immediate investigation and report by the Tariff Commission, and that the President take such action as he may be advised

tinder the provisions of said Section for the relief of the domestic

fluorspar industry; and that such action be taken, if possible, before

final action on this code.

ARTICLE X-GENERAL

(a) No provision in this code shall be interpreted in such a manner

as to promote monopolies, permit or encourage unfair competition,

eliminate or oppress or discriminate against small enterprises.

(b) This code or any of its provisions may be cancelled or modified.

and any approved rule issued thereunder shall be ineffective to the

extent necessary to conform to any action by the President under

Section 10 (b) of the National Industrial Recovery Act.

(c) Violation on the part, of any producer of any of the provisions

of this code is an unfair method of competition and shall constitute a

violation of the code and be subject to all the penalties provided in

the National Industrial Recovery Act.

(d) To the extent required or permitted by law and by the provisions of the National Industrial Recovery Act, this code shall apply

to and be binding upon every producer, whether or not such producer

has actually agreed thereto. Nothing, however, shall require the

waiver by any producer of any constitutional right.

(e) This code shall be in effect beginning ten days after its approval

by the President.

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