v 

Approved Code No. 520 Registry No. 1013-11 

u 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CHINA CLAY 

PRODUCING INDUSTRY 

AS APPROVED ON SEPTEMBER 18, 1934 

0-= 

WE DO OUR PAR'f 

UNITED STATES 

COYER. MENT PRINTING OFFICE 

WASHINGTON: 1934 

For sal:! by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
This publica tion is for sale by the Superintendent of Documents, Government 

Printing Office, Washington , D.C., ana by district offices of the Burea u of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atla n ta , Ga.: 504 Post Office Building. Birmingham, Ala . : 257 F eder a l Building. Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commer ce Building. 

Charleston, S.C. : Chamber of Commer ce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio : Chamber of Commerce. D a llas, Tex.: Chamber of Commerce Building. 

D 2troit, Mich. : 801 First Na tiona l Bank Building. H ouston , Tex . : Chamber of Commerce Building. 

India napolis, Ind. : Chamber of Commer ce Building. J a c-ksonville, F la. : Chamber of Commer ce Bullding. Kansas City, Mo. : 1028 Baltimore Avenue. Los Angeles, Ca lif. : 1163 South Br oadway. Lou isville, Ky.: 408 F eder a l Buildi ng. Memphis, Tenn . : 229 Feder a l Building. 

Minneapolis, Minn. : 213 F edera l Building. 1'\ew Orleans, La.: Room ~~5- , Cu ·tomhouse. New York. N.Y. : 734- Customhouse. Norfolk, Va. : 406 East P lume Street. Philadelphia, Pa. : 422 Commercial T rust Buil ding. Pittsburgh, Pa. : Chamber of Commerce Building. 

P ortland, Oreg.: 215 New Post Office Building. St. Louis, Mo. : 506 Olive Street. 

San Francisco, Ca lif. : 310 CustombO'Jse. 

Seattle, Wash. : 809 Federal Office :Building. 
Approved Code No. 520 

CODE OF FAIR COMPETITION 

FOR THE 

CHINA CLAY PRODUCING INDUSTRY 

As Approved on September 18, 1934 

ORDER 

APPROVING ConE OF FAIR CoMPETITION FOR THE CHIN A. CLAY 

PRODUCING INDUSTRY 

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 approval of a Code o.f 

Fair Competition for the China Clay Producing Industry, and hearings having been duly held thereon and the annexed report on said 

Code, containing findings with respect thereto, having been made 

and directed to the Pre ident: · 

NOW, THEREFORE, on behalf of the President of the United 

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

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Code com plies in all respects 

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

of Fair Competition be and it is hereby approved. 

Approval recommended: 

c. E. ADAMS, 

HuGH S. JoHNSON, 

Administrator for Industrial Recovery. 

Division Administrator. 

WASHINGTON, D.C., 

September 18, 1934. 

86452"---1181-67----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lV hite House. 

Sm: The original Code of Fair Competition for the China Clay 

Producing Industry was submitted by the Southern China Clay 

Producers Association, the name of which was subsequently changed 

to China Clay Producers Association, on September 29th, 1933. The 

China Clay Producers Association is an unincorporated membership 

society organized in 1933 representing in excess of 90% of the known 

members of Industry and in volume of production. 

Several revisions of the Code were made prior to the public hearing which was held on December 13th, 1933. The Code was revised 

during the recess of this hearing and was submitted in its final form 

for approval. Every person who requested an appearance was 

properly heard in accordance with statutory and regulatory requirements. 

The China Clay Industry as outlined in this Code embraces the 

mining anclj or producing of China Clay and the original sale, including sales on consignment, where permitted in the United States, 

of Ch1na Clay by the Member of Industry producing the same 

directly or indirectly either by himself or his agent, which includes 

without limitation any person or corporation occupying a subsidiary 

or controlling relationship or one of common, mutual or joint ownership, or control to a l\1ember of Industry. 

The term " China Clay " means a kaolinitic clay (a type of clay 

composed essentially of hydrous silicates and alumina containing a 

very low percentage of fluxing impurities) which is suitable for use 

in the manufacture of pottery, porcelain, and other ceramic products 

and as a filler or coater in the paper, rubber, paint and other 

industries. 

The China Clay Industry in the United States is of relatively recent 

development. Prior to 1900 approximately 90% of the China Clay 

used in the United States was imported from England. During the 

periocl1900 to 1914 there was a marked development of the Industry 

in the United States-1,500 tons were produced in 1914. On account 

of the difficulty of securing China Clay from England during the 

vVar the development was most marked. Today approximately 70% 

of the China Clay used in this country is of domestic origin, the 

remaining 30% is imported from England. Seven hundred and 

fourteen thousand tons representing 90% of the productive capacity 

of the United States is produced by fourteen members of the China 

Clay Producers Association. At the present time their output has 

decreased to about 42% of capacity. In 1932 three hundred and 

sixty-five thousand tons were produced valued at $2,243 000, representing about 40% of all types of clay produced in the United States 

both as to tonnn.ge and value. 

The product]--;'e capacity of this Industry, which has a capital investment of $4,100,000, is very narrowly confined in a few Southern 

(2) 
3 

States. Approximately 55% of such capacity is located in Georgia, 27% in South Carolina, 9% in Florida and mo t of the r emaining 

9% in North Carolina and Virginia. Pits are also worked in California, Missouri, Pennsylvania and Vermont. 

The uses to which domestic China Clay is now put have been 

greatly increased over the past few years through the research efforts 

of the various producers. Its principal use is as a filler for paper, followed by its use in the manufacture of white-bodied ware, ~ 

rubber, paper coating, fire-brick and block, high grade tile, oilcloth or 

linoleum and paint filler or extender. China Clay is also employed in 

the manufacture of artificial abrasives, crayons, chemicals, glasshou e 

supplies, clay crucibles, art pottery, etc. 

\iVhile there are domestic products which compete with china clay, 

such as calcium sulphate (gypsum) , calcium carbonate (whiting), 

talc and other white pigments, the Industry's chief concern is with 

the competition of imported china clay. 

Aside from the more legitimate competitive problems of the 

Industry are those specifically related to unfair trade practices within 

the Industry, such as "bid peddling", "bid chiseling", defamation 

of a competitor and false representations, all of which have debilitated the Industry with their viciousness to a degree where ruthless 

amputation from the industry is advised. 

As previously indicated, there is a productive capacity of more 

than 714,000 tons per annum in this Industry, fully sufficient to care 

for the entire American consumption under prosperous conditions. 

Today the Industry is working ~t 42% of capacity. 

The immediate. future of this Industry is largely predicated upon 

the potential increase in demand for its products; its ability to 

Hbsorb the increased labor costs incident to the proposed Code, and 

the possible further encroachment of the foreign producer upon the 

domestic producer's present market, as well as increasing competition from other domestic products. 

There are two important limitations on the extent to which the 

price of china clay may be raised. In the first place the price of the 

clay for one of its major uses, paper filler, is limited by the cost of 

recovery of what is at present a by-product of the Fertilizer Industry, 

namely calcium sulphate (gypsum), which is largely a waste product 

but which can be, and sometimes is, used as a substitute for china 

day when the price of the latter goes too high. In the second place, 

competition with foreign china clay. even under present conditions, is 

still ke~n and would doubtless be increased by any appreciable ri e 

in the price of china clay. 

Under the present Code hours employment should be afforded to 

about 250 additional employees. The minimum hourly rate has been 

increased substantially from the previously low rate in 1933 of 10¢ 

per hour extant prior to Augu t 15, 1933, or $4.80 per week of 4 

hour . In September the rate was increased to 15¢. Und r the proposed Code the minimum rate for the South is 24¢ per hour, or $9.60 

for a 40 hour week. All of this is in comparison with a G5 hour w k 

at 20¢ per hour in 1929. 

The Code rate for the South is rer re entative of an av rage con lition in the Industry inasmuch as approximat ly 905{ of the Indu try 

is located in the South. The higher Code rate for the North would 
4 

only apply to a relatively small section of the Industry scattered 

through a number of widely separated states, but would, of course, 

somewhat increase the total wage rate in the Code. 

ARTICLE I. States the purpose of the Code. 

ARTICLE II. Accurately defines specific terms applicable to the 

China Clay Producing Industry. 

ARTICLE III. The maximum hours are limited to 40 hours per 

week, or eight hours per day in any 24 hour period except as otherwise provided for. In order to meet adverse conditions of production due to seasonal inclement weather, employees engaged in open 

pit (mining) shall be permitted to work an average of 40 hours per 

week in any four or five week period that shall correspond as near 

as may be to the calendar month, with a maximum of 48 hours in any 

seven-day period; provided, however, that at least one and one-half 

times his regular wage rate for any employee so employed shall be 

paid for all hours worked in excess of 40 hours in any seven-day 

period. 'Vatchmen may be permitted to work 56 hours in any sevenday period; provided, that such employees shall have at least one 

day's rest in each sev:en-day period. No clerical or office employee 

shall be permitted to work in excess of 40 hours per week averaged 

over a five-week period nor more than 48 hours in any one week. 

Executives or those employed in supervisory capacities or in technical 

work who are paid not less than at the rate of $30·.00 per week in 

the Southern Zone or $35.00 per week in the Northern Zone, are not 

subject to hourly limitatiOns. The maximum hours shall not apply 

to employees engaged in emergency maintenance or emergency repair 

work. 

ARTICLE IV. The minimum wage for employees in the processing 

of products or any labor incident thereto shall be 24¢ per hour in 

the Southern Zone and 35¢ per hour in the Northern Zone. No 

person employed in clerical or office work shall be paid less than at 

ihe rate of $15.00 per week except that office boys and girls''and 

messengers may be paid at a rate of not less than 80% of the minimum 

paid to office employees. The established minimum rate of pay for 

work performed in any pay period shall apply irrespective of 

whether an employee is actually compensated on a time-rate, piecework or other basis. Provision is also made for the employing of 

handicapped persons. 

ARTICLE V. This Article provides that no person under 18 years 

of age shall · be employed in the Industry except in specific opera6ons and no person under 16 years of age shall be employed. in any 

capacity. This Article also sets forth mandatory provisions respecting the rights of employees to organize and bargain collectively. 

This Article also provides for matt.ers having to do with reclassification of employees, standards for safety and health, the observance 

of state laws, the posting of complete copies of this Code, company 

towns and stores and dismissal for complaint. 

ARTICLE VI. Establishes a Code Authority consisting of seven 

voting members together with Administrator members to administer 

the provisions of this Code. This Article also provides for powers 

and duties of the Code Authority. 

ARTICLE VII. Sets forth the marketing and trade practice rules 

for the Industry. 
5 

ARTICLE VIII. !\fakes prov1s10n for recommendation to the Ad· 

ministrator by the Code Authorjty of matters having to do with 

new capacity. 

ARTICLE IX. !\fakes prov]sion for Export Trade. 

ARTI LEX. :Makes provi ion for modification of the Code. 

ARTICLE XI. Makes provision for registration of 1-Iembers of the 

Industry. 

ARTICLE XII. :No provision of this Code shall be so applied as to 

promote monopolies or monopolistic practices or to eliminate, oppre s or discriminate against small enterprises . . AnTICLE XIII. 1\fakes provision for the termination of the Code. 

ARTICLE XIV. Covers the effective date. 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basi of all the proceedings in this matter : 

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 obstructions to the free flow of interstate and foreign 

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

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 possible 

utilization of the present productive capacity of Industries, by avoiding undue restriction of production (except as may be temporarily 

required), by increasing the consumption of 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 Industry normally employs not more than 50,000 employees; 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 7, and 

Subsection (b) of Section 10 thereof; and that the applicant Asso· 

ciation is an Industrial Association truly representative of the afore· 

said Industry; and that said Association imposes no inequitable restrictions on admission to membership therein. 

(d) 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 enterprises and will not operate to discriminate against them. 

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

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

Code. 

For these reasons, therefore, this Code has been approved. · Respectfully, 

SEPT. 18, 1934. 

HuoH S. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE CHINA CLAY 

PRODUCING INDUSTRY 

AnTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, this Code is established as a Code of Fair Competition for the China Clay Producing Industry and its provisions shall 

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

ARTICLE II-DEFINITIONS 

Wherever used in this Code or any supplement appertaining 

thereto, the terms enumerated in this Article shall have the meanings herein defined, unless the context shall otherwise clearly 

indicate. , 

SECTION 1. The term " President " means the President of the 

United States of America. 

SECTION 2. The term "Act" means Title I of the National Industrial Recovery Act. 

SECTION 3. The term "Administrator" means the Administrator 

for Industrial Recovery. 

SECTION 4. The term "China Clay Producing Industry" or "Industry" as used herein includes the mining and/ or producing of 

China Clay and the original sale (including sales on consignment 

where pennitted) in the United States, of China Clay by the Member of Industry producing the same directly or indirectly either by 

himself or his agent, which includes without limitation any person 

or corporation occupying a subsidiary or controlling relationship or 

one of common, mutual, or joint ownership, or control to a l\1ember 

of Industry 

SECTION 5. The term "China Clay" as used herein means a kaolinitic clay (a type of clay composed essentially of hydrous silicates 

and alumina containing a very low percentage of fluxing impurities) 

which is suitable for use in the manufacture of pottery, porcelain, 

and other ceramic products and as a filler or coater in the paper, 

rubber, paint and other industries. 

SECTION 6. The term "Member of Industry" includes, but without limitation, any individual, partnership, association, corporation 

or other form of enterprise engaged in the Industry, either as an 

employer or on his or its own behalf. 

SEcTION 7. The term "Employee" means and includes anyone 

engaged in the Industry in any capacity receiving compensation for 

his services irrespective of the nature or method of payment of such 

compensation, except a Member of the Industry. 

(6) 
7 

SECTION 8. The term ' Employer mean anyone by whom any 

such employee is empl y d or ompensated. 

SECTION 9. The term 'Southern Zone ' a u.-e l herein hall include 

the States of Alabama Arkan ... a A. Florida, Georgia Louisiana, Missi ippi, South Carolina, North c;arolina an l Virginia. 

SECTION 10. The term ' North rn Zone., a u eel herein hall include all other territory of the United Stat.os except as defined in 

"Southern Zone." 

SECTION 11. The term ' As ociation" hall mean the China Clay 

Producers A ociation, a voluntary unincorporated a sociation. 

SECTION 12. The t rm " Executive Committee" shall mean the 

Executive Committee of the As ociation. 

SECTION 13. The term " Secretary " shall mean the Secretary of 

the Code Authority, who shall also be the Secretary of the Association. 

ARTICLE III-HoURs OF LADOR 

SECTION 1. M axinwnu H ours.-N o employee shall be permitted to 

work in excess of forty ( 40) hours per week or eight ( 8) hours in 

any twenty-four (24) hour period, except as herein otherwi e provided. 

(a) Employees engaged in open pit (mining) shall be permitted 

to work an average of forty ( 40) hours per week in any four or 

five-week period that shall correspond as near as may be to the calendar month, with a maximum of forty-eight ( 48) hours in any se' enday period; provided, however, that at least one and one-half times 

his regular wage rate for any employee so employed shall be paid 

for all hours worked in excess of forty (40) hours in any seven-day 

period. 

(b) Employees engaged as watchmen may be permitted to work 

not more than fifty-six (56) hours in any one seven-day period, nor 

more than six (6) days in any seven-day period. 

SECTION 2. Hours for Clerical and Office Employees.-N o clerical 

or office employee shall be permitted to work in excess of forty ( 40) 

hours per week, provided that in one ( 1) week of each five ( 5) week 

period any such employee may be permitted to work not in exce s 

of forty-eight ( 48) hours; provided further, that in no such five ( 5) 

week period shall any employee be permitted to work in exce s of 

an average of forty ( 40) hours per week. 

SECTION 3. Exceptions a-s to fl ours.-The provisions of this Article 

shall not apply to outside salesmen, or to employees engaged in emergency maintenance or emergency repair "ork; prov.ided, however, 

that at least one and one-half times the regular wage rate for any 

employee so employed shall be pail in such emergency maintenance 

or emergency repair work for all hours worked in exce s of the maximum hours hereinbefore provided; nor to executive or tho e em- ployed in supervi ory capacities or in technical work who are paid 

not le s than at the rate of Thirty Dollars ($30.00) per we k in the 

Southern Zone or Thirty-Five Dollars ($35.00) per week in the 

Northern Zone. 

SECTION 4. Standa? d lVeek.-No mploy e shall be permitt l to 

work more than six (6) clays in any seven (7) day perio l. 

86452·--n 1-67-34-2 
8 

SECTION 5. E1nployn1.,ent by Several Em . .zJloyen.-No employer 

shall knowingly permit any employee to work for any time which, 

when totalled 'ITith that already performed with another employer 

or employer in this Industry or other trades or industries, exceeds 

the maximum permitted herein. 

AnTicLE IV-vV AGEs 

SECTION 1. Minimu1n W ages.-Except as otherwise herein prov.ided no employee shall be paid in any pay period less than at the 

rate of Twenty-four (24) cents per hour in the Southern Zone, nor 

less than at the r at e of Thirty-five (35) cent per hour in the 

Northern Zone. 

SECTION 2. Ol&~'ical and Office E1nployees.-N o clerical or o:fficp, 

~mployee shall be paid less than at the rate of Fifteen Dollars 

($15.00) per week; provided, however, that office boys and girls and 

n1essengers may be paid not less than at a rate of 80 % of the 

n1inimum hereinabove specified, and provided further that the number of such boys and girls and messengers so paid shall constitute not 

more than 5% of the total number of sueh employees of any one 

office of any one employer, but in any case each employer shall be 

entitled to e1nploy one such employee. 

SECTION 3. PiecewoTk 00171JJensation--Jlfini1ntt1n Wages.-This 

Article establishes a minimum rate of pay for any })ay period which 

shall apply, irrespective of whether an employee is actually compensated on a time-rate, piecework, or other basi . 

SECTION 4. IV ages Above the llfinin1wn.-Adjustment of wages, 

with respect to wages above the minimmn, shall be n1ade within 

thirty (30) days after the effective date of this Code by each employer who has not heretofore made such adjustment. Such adjustment shall mean the maintenance of a differential at least as great 

in amount as that existing on June 16, 1933, between the wage rates 

for such employment and the then minima. In no event, however, 

shall hourly rates be reduced in making uch adjusbnents. vVithin 

sixty (60) days after the effective date of this Code each Member of 

the Industry shall make a report of such adjustment whether made 

prior to or subsequent to the date of approval of this Code to the 

Code Authority. 

SECTION 5. Payment of IVages.-Each employer shall make payment of all wages in lawful currency, or by negotiable check therefor, 

payable on demand. These wages shall be exempt from any deductions other than those expressly authorized by a.n employee or required by law. Pay periods for wages hall be at no greater interval 

than every semimonth, and salaries at no greater interval than every 

month. No employer shall withhold wages except as otherwise 

provided by law. 

SECTION 6. Handicapped Persons,.-A person who e earning 

capacity is limited because of age, physical or montal handicap, or 

other infirmity, may be employed on light work at a wage below the 

minimum establish l by this Code if the employ r obtains from the 

State Authority, designated by the United States Departn1ent of 

Labor, a c rtificate authorizing such per on's employment at such 

wages and for such hours as shall b stated in tho certificate. Such 
9 

Authority hall be guid d by. the in~ tructions f th United Stat s 

Department of Labor in i umg ertificates t uch per on . Each 

employer shall file with the ode l.uthority, and k p urr nt, a lit 

of all such per on employ c1 b. him, h wing the wao· s pail to and 

the maximum hour of work for uch emrloyc . SECTION 7. Con.t•racts foT P rformance of Work .-N o employer 

shall contract work to be done xcept when th person performing 

the contract agrees to be boun l by the provi ion of this ode or the 

Code adopted for the Industry coverina uch work; and in no ca e 

shall an employer avoid or evade the labor 1 rmri ions of this Code 

by contracting hi work to any person ubject to labor regulations 

less string nt than those provid d in this Cod). 

AnTICLE V-GENERAL L BOR PnovrsiONS 

SECTION 1. Child Labor.-No pers-on under eighteen (18) year of 

age shall be employed in the Indust:ry, except in clerical, office, sales, 

service, technical and engineering department office duties, an l no 

per on unde:r sixteen (16) years of age shall be employed in any 

capacity. In any State an employer hall b deemed to have complied with this provision a to age if h hall have on file a certificate 

duly signed by the Authority of uch State empowered to issue employment or age certificates or permit , showing that the employee 

is of the required age. 

SEcTioN 2. Provisions of the Act.-(a) Em.ployees hall haYe the 

right to organize and bargain collectively through representative of 

their own choosing, and shall be free from the interference, re traint, 

or coercion of employer 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 n1utual 

aid or protection. 

(b) No employee and no one eeking emplovment shall be required as n condition of employment to join any company union 

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

(c) E1nployers shall comply with the maximum hour of labor, 

minimum rate of 1)ay and other condition of employment approved 

or prescribed b t he Pr sident. 

SECTION 3. R clavsification of Em,ploy es.-N o employer shall recla sify employ e or duti s of occupations performed, or engage 

jn any other subterfuge for the purpo e of defeating the purpo ·es 

or provi ·ions of the Act or of this C de. 

SECTION 4. Standa:f'ds of Saf ty and H alth.-Every emrloyer 

hall pro1icle for the afety and h alth of his employees at the 

place anrl during the hours -f their employment. Standar 1 of 

afcty and health for ach division of the In lu try shall be ubmitted te the Administrator by the Code Authority within thr e (3) 

months after approval of this Code. 

SE TION f5. tate Laws.-N o pro vi ·i u in thi Code :hall u1 r de 

rmy tate or F dcrallaw which impo e on employ rs mor trin ·ent 

r quirement as to aa of empl e s wat;c hour of work or a to 

saf ty, health . anitary r gen ral workino· con lition , or 1n. urance 

or fire pr t ction, than are imposed by thi · C 1 . 
10 

SECTION 6. Posting.-All employers shall post and keep posted 

complete copies of this Code and all amendments thereto in conspicuous places acce sible to employees, and shall comply with all 

rule ::mel regulations relative to posting which may from time to 

time be prescribed by the Administrator. 

SECTION 7. Company T owns ancl 8tor s.-Employees other than 

maintenance or upervisory 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. No employee shall 

be required, as a condition of employment, to trade at a store owned 

or pecified by an employer. 

SEcTioN 8. Dismissal for 0 on~plaint.-N o employer shall dismiss 

or demot~ any employee for making a complaint or giving evidence 

with respect to an alleged violation of this Code. 

ARTICLE VI-ORGANIZATION, Po wEns AND DuTIES oF T!IE ConE 

AuTHORITY 

SECTION 1. Organi:zation and Oonstitution.-A Code Authority to 

administer this Code is hereby constituted, and shall consist of six 

(6) voting members who shall be selected by and who may be m.em- bers of the Executive Committee of the Association, and one (1) 

other voting member who shall be a Member of Industry and shall 

be selected by the :Members of Industry who are not members of the 

Association. The selection of all members to the Code Authority 

. hall be by a fair and equitable 1nethod of election to be approved 

by the Administrator. In the event that the selection of the Association's non-member representative on the Code Authority is not 

made within thirty (30) days after the effective date of this Code 

such member may be elected by the Administrator. 

SECTION 2. In addition to the above Inembership there may be not 

more than three (3) members without vote and without compensation by the Industry, appointed by the Administrator to serve for 

such terms as he may specify. 

SECTION 3. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall: (1) impose no inequitable restrictions on membership, and 

(2) submit to the Administrator true copies of its Articles of Association, By-Laws, Rules and Ragulations 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. 

SECTION 4. 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 thereafter if he shall find that 

any Code Authority or sub-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 such Code Authority. 

SECTION 5. Nothing contained in this Code shall constitute the 

members of the Cole Authority partners for any purpose; nor shall 

any member of the Code Authority be liable in any manner to any-
11 

one for any act of any other member, officer, ao-ent or employee of 

the Code Authority; nor shall any member of th ode Authority (>Xercising reasonable diligence in the conduct of his duti s hereunder, 

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

except for his own wilful mal:feasance or nonfea an e. SECTION 6. Powers and Duties.-Subject to such rules and reO'ulations as may be is ued by the Administrator, and to the extent 

permitted by the Act, the Code Authority hall have the following 

further powers and dutie : 

(a) To make investigations as to the functioning and observance 

of any provisions of this Code at its own instance or upon complaint 

of any person affected and to report thereon to the Administrator. 

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

provide for the compliance of the Industry with the provisions of 

the Act. (c) To adopt By-Laws and Rules and Regulations for its procedure and for the administration of this Code. The Code Authority 

shall promptly furnish to the Administrator for his approval true 

copies of the By-Laws, Rules and Regulations, and all amendments 

thereto, adopted pursuant to this paragraph. 

(d) To obtain from Members of the Industry, through a confidential agent, such information and reports as are required for the 

administration of this Code. In addition to information required 

to be submitted to the Code Authority, Members of the Industry 

subject to this Code shall furnish such statistical information as the 

Administrator may deem necessary for the purposes recited in 

Section 3 (a) of the Act to such Federal and State agencies as he 

may designate; provided, that nothing in this Code shall relieve any 

Member of the Industry of any existing obligations to furnish reports to any Government agency. No individual report shall be disclosed to any other Member of the Industry or any other party except 

to uch other governmental agencies as may be directed by the 

Administrator. 

(e) To use such trade associations and other agencies 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 such 

trade associations and agencies shall at all times be subject to and 

comply with the provisions hereof. (f) To make recommendations to the Administrator for the coordination of the administration of this Code with such other Codes, 

if any, as may be r late 1 to the Industry. 

( o·) To make recommendations to the Administrator for the 

amendment or mo lification of thi Code on the ba is of experience 

and changes in circum tances, and to make recommendations (but 

without limitation ) r lative to (1) further fair trade practice pr - vision to goYern I\.femhers of the Industry in their relations with 

each other or with other Indu tries, and (2) mea ure for industrial 

plannina including calling of meetino·s of :Members of the Indu try 

to consi ler control of production through oluntary agreement, 

stabilization of employment and conservation of natural resour e , and (3) prevention f the elimination or oppres ion of and discrimination against mall enterpri es, and ( 4) prev ntion of unfair, 
12 

or des~ rnctivc practices, and ( 5) rehabilitation of industry, which 

recommendations, upon approval by the Administrator after such 

notice and hearing as he may prescribe shall become part of this 

Cod and have full force and effect as provisions her eof as outlined 

in Article X Section 4. 

(h) To invnstigate and inform the Administrator on behalf of 

the Indu try a to importation of competitive articles into the United ~ tate in substantial quantities or increasin (J' ratio to domestic procluction on such terms or under such conditions as to render ineffec- tive or seriously endanger the maintenance of this Code, and to malm 

complaint to the President on behalf of the Industry under the provisions of Section 3 (e) of the National I ndustrial Recovery Act with 

respect thereto. ( i) To engage the services of a confidential and disinterested agent 

to inspect the books and records of any Member of Industry against 

whom complaint for an alleged violation of this Code has been made 

and accepted by the Code Authority. In case such an inspection is 

ordered, such :Member of Industry shall open his books and records 

t o inspection by such agent as to all matters which may be pertinent 

t o the allegation, upon the express condition that such inspection be 

made only by such agent. 

In case such inspection indicates a violation of this Code has not 

been committed the agent shall report that fact to the Code Authority without further details. 

In case such inspection indicates a violation. of this Code has been 

committed the agent shall make a full report of such violation only 

to the Code Authority and to the Administrator. 

SECTION 7. It being found necessary to support the administration 

of this Code in order to maintain the standards of fair competition 

established by this Code and to effectuate the policy of the Act, the 

Code Authority is authorized: (1) To incur such reasonable obligations as are necessary and proper for the foregoing purposes and 

to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes 

of this Code : (2) To submit to the Administrator for his approval, 

subject to such notice and opportunity to be heard as he may deem 

necessary, (a) an itemized budget of its estimated expenses for the 

foregoing purposes, and (b) an equitable basis upon which the funds 

necessary to support such budget shall be contributed by Members 

of the Industry: ( 3) After such budget and basis of contribution 

have been approved by the Administrator, to determine and secure 

equitable contribution as above set forth by all such Members of 

the Industry, and to that end, if necessary, to institute legal proceedings therefor in its own name. 

SEcTioN 8. Each Member of the Industry shall pay his or its 

equitable contribution to the expenses of the maintenance of the 

Code Authority, determined as hereinabove provided, and subject 

to rules and regulations pertaining thereto issued by the Administrator. Only Members of the Industry complying with the Code and 

contributing to the expenses of its administration as hereinabove provided? (unless duly exempted from making such contributions,) shall 

be entitled to participate in the selection of members of the Code 
13 

Authority or to receive the benefits of any of its voluntary activities 

or to make use of any emblem or insignia of the National Recovery 

Admini tration. 

SECTION 9. The Code Authority shall neither incur nor pay any 

obligation substantially in exce s of the amount thereof as estimated 

in its approved budget, and shall in no event exceed the total amount 

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

item for expenditures in excess of prior budget estimates except 

tho e which the ~dministrator shall have so approved. 

SECTION 10. 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 con ideration by 

such Code Authority or agency pending final action which shall not 

be effective unless the Administrator approves, or unless he shall 

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

to proceed with such action in its original or modified form. 

SEcTioN 11. The Code Authority shall cause to be formulated 

methods of cost finding and accounting capable of use by all Members of the Industry, and shall submit such methods to the Administrator for review. If approved by the Adininistrator full information concerning such methods shall be made available to all :Members 

of the Industry. Thereafter, each :Member of the Industry shall 

utilize such methods to the extent found practicable. Nothing 

herein contained shall be construed to permit the Code Authority, 

any agent thereof, or any ~1ember of the Industry to suggest uniform additions, percentages or differentials or other uniform itmns 

of cost which are designed to bring about arbitrary uniformity of 

costs or prices. 

ARTICLE VII-MARKETING A~D TRADE PRACTICE RULES 

SECTION 1. Each IY.I:emoer of the Industry shall file with a confidential and disintere ted agent of the Code Authority or, if none, 

then with such an agent designated by the Administrator, identified 

lists of all of his prices, discounts, rebates, allowances, and all 

other terms or conditions of sale, hereinafter in this Article referred 

to as" price terms", which lists shall complet-ely and accurately conform to and represent the individual pricing practices of said member. Such lists shall contain the price terms for all such standard 

products of the Industry as are sold or offered for sale by said member and for such non-standard products of said me1nber as shall be 

designated by the Code Authority. Said price terms ... hall in the 

first instance be filed within ten (10) day after the effective date 

of this Code. Price t erms and rev1sed price terms shall become 

effective immediately upon receipt thereof by aid agent. Imm cliately upon receipt thereof, said agent shall by telegraph or other 

equally prompt means notify said member of the time of such 

rece-ipt. Such lists and revisions together with the eff ctive time 

thereof, shall upon receipt be immediately and simultaneously dis-
14 

tributed to all :Members of the Industry and to all of their customers 

who ha-ve applied therefor and have offered to defray the cost actually incurred by the Code Authority in the preparation and distribution thereof and be available for inspection by any of their 

customers at the offi e of such agent. Said lists or revisions or any 

part thereof shall not be made available to any person until relea eel to all :Members of the Industry and their customers, as afore- said; provided, that prices filed in the first instance shall not be 

r eleased until the expiration of the aforesaid ten (10) day period 

after the approval of this Code. The Code Authority shall maintain a permanent file of all price terms filed as herein provided, and 

shall not destroy any part of such records except upon written consent of the Administrator. Upon request the Code Authority shall 

furnish to the Administrator or any duly designated agent of the 

Administrator copies of any such lists or revisions of price terms. 

(a) When any :Member of the Industry has filed any revision, such 

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

(b) No Member of the Industry shall sell or offer to sell any 

products of the Industry, for which price terms have been filed pursuant to the provisions of this Article, except in accordance with 

such price terms. (c) No Member of the Industry shall enter into any agreement, 

understanding, combination or conspiracy to fix or maintain price 

terms, nor cause or attempt to cause any Member of the Industry to 

change his price terms by the use of intimidation, coercion, or any 

other influence inconsi tent with the maintenance of the free and 

open market which it is the purpose of this Article to create. - (d) The Code Authority may prescribe rules and regulations providing for the sale of by-products or distress merchandise, surplus 

inventories, products not up to specification, and to meet the competition of other materials competitive with the products of this 

Industry, which shall become effective upon approval by the Administrator. No Member of the Industry shall sell any goods of 

any of the classes above described for the _purpose of violating the 

provisions of this Code or of defeating tbe purposes of the Act, 

except in full compliance with such rules and regulations. 

SECTION 2. The standards of fair competition for the I ndustry 

with reference to prices and practices are declared to be as follows: 

(a) Wilfully destructive price cutting is an unfair method of competition and is forbidden. Any Member of the Industry or of any 

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

to the Code Authority that any filed price constitutes unfair competition as destructive price cutting, imperiling small enterprises or 

tending toward monopoly or the impairment of code wages and 

working conditions. The Code Authority shall within five (5) days 

afford an opportunity to the member filing the price to answer such 

complaint and shall within fourteen (14) days make a ruling or 

adjustment thereon. If such ruling is not concurred in by' either 

party to the complaint, all papers shall be referred to the Research 

and Planning Division of the National Recovery Administration, 

which shall render a report and recommendation thereon to the 

Administrator. 
15 

(b) When no declared emergency exists as to any given product, 

there is to be no fixe l minimum ba is for prices. It i intended that 

sound co_t ti mating methods should be used and that consideration 

should be given to costs in the determination of pricing policies. (c) \V11en an emergency exi ts as to any given product, ale below 

the stated minimum price of such product, in violation of Section 3 

hereof is forbidden. 

SECTION 3. \Yhen tl1e Administrator determine upon the petition 

of the Code Authority, or otherwise, that an emero-ency exists in 

this Indu try because of destructive price cutting which is such as 

to render ineffective or seriou ly endangers the maintenance of the 

provisions of this Code, the Administrator may cause to be deter· 

min d, after investigation of costs by the Code Authority through 

an impartial agency, the minimum price for any product of this Industry necessary to mitigate the conditions constituting such emergency and to effectuate the purposes of the Act, and below which price 

such product of the Industry shall not be sold. Such determination 

shall be subject to such notice and hearing as the Administrator may 

require. From time to time the Code Authority, upon its own initia· 

tive, or upon the request of any interested party, may recommend 

that the determination be reviewed, or the Administrator may cause 

such determination to be reviewed and appropriate action taken. 

SECTION 4. Trade Practice Rules.-The following trade practices 

are declared to constitute unfair methods of competition between 

Member of the Industry, and no Member of the Industry shall 

use or engage in any of them, either directly or indirectly, through 

any officer, agent or employee. Engaging in any one or more of 

these or any further trade practice provisions which hereafter may 

be established on recommendation by the Code Authority, approved 

by the Administrator, after such hearings as he may pre cribe, shall 

be deemed a violation of this Code. 

(a) Selling of any industry product by a ~1ember of the Industry 

at a price below the open, filed or publicly announced price schedules 

of snch member, or to deviate from the conditions of sale contained 

in ·11ch schedules filed pursuant to &ction 1 of this Article. 

(b) Secretly paying or allowing rebates, refunds, comm.is ions, 

credit or unearned discounts, whether in the form of money or 

otherwi e, or the extension of special services or privileges to certain 

purchasers which are not extended to all purchasers under similar 

circumstances, for the purpose or with the effect of violating the 

provi ions of this Code. 

(c) Cancelling in whole or in part, or permitting the cancellation 

in whole or in part, of any contract of sale of any product, or except 

for a fair c nsideration or just cause or for the purpose of effectuat- ing a new contract with the buyer when the purpose of such cancellation i to create an unfair price a lvantage f or a 1\'fember of Indu try. 

(d) Knowingly inducina or attempting to induce the breach of 

an exi ting contract betw en a competitor an l hi cu tomer or our e 

of upply; or inter£ rino- with or ob tructing in any mann r th performan ce of the contractual duti betw en a l\1 mber f Indu try 

and hi en tom r. 

( ) ecuring or attempting to secure confidential informati n concerning the bu ine s of a comp titor by a fal e or mi lea ling tate-
16 

ment ;)r repr sentation. by a false impersonation of one in authority, 

by b1 ibery, or by any other unfair method. 

(f) riellin(}' on consignment except where peculiar circumstances 

of the Industry require the practice. Such exceptions hall be defined 

hy the Code Authority with the approval of the Administrator, and 

shall apply alike to alll\1embers of the Indu try. (g) Kno',Tjngly publi hing advertising, whether printed, radio, 

display or her~Vise, which is misleading or inaccurate in any mate- rial particular; or mi representina any goods or products of the Industry as to use, trade-mark, grade, quality, quantity, size, substance, 

character, nature, finish, material, content, preparation, or making 

any misrepre entation as to credit terms, values, policies, services or 

the nature or form of the business conducted . (h) Branding, marking or packing any goods or products in any 

manner, which is intended to deceive or mislead purchasers with respect to grade, quality, quantity, size, substance, character, nature, 

finish, material, or content of such goods or products. 

(i) Knowingly publishing advertising which refers inaccurately 

in any material particular to any competitors or their goods, prices, 

values, credit terms, policies or services. 

(j) Requiring that the purchase or lease of any products or equipment be a prerequisite to the purchase or lease of any other products 

or equipment. 

(k) Giving or permitting to be given, or directly offering 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 aaent or the represented party, without the knowledge of 

such employer, principal, or party. This commercial bribery provision shall not be construed to prohibit free and general distribution 

of articles commonly used for advertising except so far as such 

articles are actually used for commercial bribery as hereinabove 

defined. 

ARTICLE VIII-NEW CAPACITY 

In the event that the Code Authority shall determine that then 

existing capacities and capacities then under construction for the 

production of products of the Industry are in excess of the capacities 

required to meet the demand for such products, and the Administrator shall approve such determination upon the recommendation of 

the Cod-e Authority, then such capacities shall not be increased (except for the supplying of foreign demand) until such time as the 

Code Authority and the Administrator, or the Administrator acting 

on his own behalf, shall determine that the demand for such products 

cannot be met by the fullest possible use of such capacities. 

ARTICLE IX-EXPORT TRADE 

No provision of this Code relating to prices or terms of selling; 

shipping or marketing, shall apply to export trade or sales or shipments for export trade. " Export Trade " shall be as defined in the 

Export Trade Act adopted April 10, 1918. 
17 

llRTICLE JC--~ODIFICAT10N 

SECTTON 1. This Code and all the provi ions 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, approval, license rule or regulation issued under 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 impo ed by him upon his approval thereof. 

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

to be included therein by the Act may, with the approval of the Administrator be amended as provided in Section 3 hereof, in such 

manner as may be indicated by the needs of the public, by changes 

in circum tances, or by experience ; all the provisions of this Code, 

unless so modified or liminated shall remain in effect until the 

expiration date of Title I of +he Jlct. 

SE TION 3. Jln amendment may be proposed by any interested 

party either to the Code Authority or directly by or to the Administrator. All proposed amendments shall be referred to the Code 

Authority who shall give :Members of the Industry an opportunity 

to be heard thereon, and thereafter the. Code Authority may make 

such recommendations thereon as is deemed proper; provided, however, that when approved by the Jldministrator as necessary to effectuate the policies of the Act, after such notice and hearing as he may 

prescribe any proposed amendment shall thereupon become effective 

as a part of this Code. 

SEcTTON 4. If the Code Authority shall desire to propose an amendment after having approved the same, it shall submit the same to 

the 1\fembers of the Industry who shall thereupon vote upon said 

proposed amendment either at a special meeting called for that purpose or by mail ballot, at the discretion of the. Code Authorit;. In 

such voting there shall be two (2) separate ballots on each amendment so proposed: 

(a) Each :Nlember of the Industry voting shall be entitled to cast 

one (1) vote upon d amendment, which vote shall be known as 

the ' :Member Vote ". 

(b) Each JYiember of the Industry voting upon said proposed 

amendment shall be entitled to cast one (1) Yote for each thou and 

tons shipped during the preceding calendar year by such member. 

This vote shall be known as the " Capacity Vote". 

In order to recei1 e approval of the Industry, any such propo eel 

amendment hall receive the affirmative vote of: 

(a) At lea t sixty-six and two-thirds (66%) per cent of the 

~fember Votes ca t and in addition thereto 

(b) At lea t sixty- ix and two-third (66%) per cent of the 

Capacity Votes cast, b th separately con idered. If such I ropo ed 

amendment hall be approved in the manner above set forth, the 

Code Authority hall ubmit uch propo ed amendment to the Jldministrator. Such amen lm nt hall become effective a a part of 

thi Cole upon approval b; the Administrator after such notice and 

hearing a he may pres ribe. 
18 llllllllll~l~i~l~ l1l~l flflll[lflllil~ijUI] 111111111 

3 1262 08486 8354 

ARTICLE XI-REGISTRATION OF MEMBERS OF THE INDUSTRY 

SE TION 1. Each ~1ember of the Industry shall within thirty (30) 

day after the effective date o:f this Code register with the Code 

Authority. All ~1embers o:f the. Industry who may engage in the 

Industry thereafter shall likewise regi ter with the 'ode Authority. 

SE TION 2. Every ~1ember o:f the In lustry shall, within thirty 

(30) days after the effective date o:f this Code, or the dat€ upon 

which uch member becomes subject thereto, whichever is latest, 

regi ter the full name o:f its enterprise together with a statement of 

the number o:f shops, establishments or separate units thereof and 

their location, with the Code Authority. Every such Member of 

the Industry which may open :for business an additional shop, es- tablishment or separate unit after such registration shall, within 

thirty (30) days after such opening, register the same in like manner. 

ARTICLE XII-~10NOPOLIES 

No prov1s10n o:f this Code shall be so applied as to promote 

monopolies or monopolistic practices, or to eliminate, oppress, or 

discriminate against small ent€rprises. 

ARTICLE XIII-TERMINATION 

This Code and all supplementary provisions thereto shall expire 

on June 16, 1935, or on the earliest date prior thereto on which the 

President shall, by pr-oclamation, or the Congress shall, by joint 

resolution, declare that the emergency recognized by Title I of the 

Act has ended. · 

ARTICLE XIV-EFFECTIVE DATE 

This Code shall become effective beginning two weeks after its 

approval by the Administrator. 

Approved Code No. 520. 

Registry 1013-11. 

0