Approved Code No. 351 Registry No. 1218-8-04

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

QUICKSILVER INDUSTRY

AS APPROVED ON MARCH 21, 1934

MEMBER

R

U.S.

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON : 1934

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Approved Code No. 351

CODE OF FAIR COMPETITION

FOR THE

QUICKSILVER INDUSTRY

As Approved on March 21, 1934

ORDER

CODE OF FAIR COMPETITION FOR THE QUICKSILVER 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 of

Fair Competition for the Quicksilver 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 President:

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 complies 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.

HUGH S. JOHNSON,

Adiniistrator for Iudustrial Recocery

Approval recommended:

K. M. SIMPSON,

Division Admininistrator.

WASHINGTON, D.C.,

March 21, 1934.

47766*0-425-113-34 (303)
REPORT TO THE PRESIDENT

The PRESIDENT,

The White House.

SIR: The original Code of Fair Competition for the Quicksilver

Industry was submitted August 3, 1933, by the National Quicksilver

Producers Association, an unincorporated membership society organized in 1933, representing 95% of the known members of the Industry

in volume of production. Several revisions of the Code were made

prior to the public hearing held on February 2nd, 1934. The Code

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

form for approval. Every person who requested an appearance was

properly heard in accordance with statutory and regulatory requireinc nts.

The history of the mercury industry in the United States has

indicated considerable flexibility both in supply and demand under

the influence of price. When the price of mercury became high, production tended to increase and consumption to fall. For many

years before 1915 the price of mercury at New York rarely exceeded

$50.00 and was generally below $40.00 a flask (76 pounds).

In the United States in 1869 the average yearly price was $46.00 a

flask (76 pounds). By the latter part of 1873 the price had risen to

$105.00 a flask. This was due in part to the decline of production

and the advent of pan-amalgamation of gold which increased the

domestic demand. During the next two years, with the decline of

placer gold production, the price receded, but owing to the high price

of 1873 and 1874 many new enterprises were started which came into

production during the next four years, and by 1877, the peak of domestic production- 79,000 flasks-was reached, and the price had receded

to $37.00 a flask. In 1883 in order, no doubt, to maintain and assist

a waning industry, a tariff was placed upon mercury amounting to

10% ad valorem. From that time a tariff has been maintained at

varying rates. In 1909 the tariff was seven cents per pound, and in

1913 it was changed again to 10% ad valorem. During the War, with

the greatly stimulated price, domestic production was slightly in

excess of 36,000 flasks. In 1923 domestic production was about 8,000

flasks, and imports amounted to 24,000 flasks. The average New York

price in 1921 was $45.00 a flask. The Tariff Act of 1922 raised the

duty to twenty-five cents a pound, but the effect upon production for

the next few years seems to have been negligible. Possibly owin' to

the belief that mercury mines were exhausted in the United States, as

well as to the fact that the production of Spain and Italy dominated the

world's market, these governments made an agreenient to control

production; production was pooled and sales made through a common

agency. The cartel advanced the price from $70.00 to $125.00 a flask.

Prior to the organization in 1928 of Mercurio Europeo, the SpanishItalian cartel, the United States imported % or more of its mercury

supplies from Europe, chiefly from Spain and Italy. In spite of the

(304)
305

depression the cartel was able to maintain high prices for several

years which stimulated production and use of American Mercury in

the United States and temporarily reversed the proportions of foreign

and domestic metal used in this country. Inability to restrict

Spanish-Italian production, however, resulted in the accuimlation of

large stocks abroad, which coupled with the disposition of buyers to

withhold commitments in an uncertain market broke the price control and sent prices below the level of American cost of production and

sharply curtailed production even in the face of a duty of $19.00 per

flask. The New York price of mercury declined from a high of $130.50

per flask in October, 1928, to $110.60 in October, 1930 and to $48.50

in December, 1932. As most American mines must receive at least

from $60.00 to $70.00 per flask to operate, suspension of mining reduced United States production to 12,622 flasks in 1932 compared

with 24,947 in 1931 and 21,553 in 1930, and our temporary position

as an exporter was lost.

The mercury industry of the United States is broadly 83 years old.

The history indicates a cycle of production. In 1850, commercial

production of mercury was started. As indicated in 1877, the peak

of all time domestic production of 79,000 flasks was reached. Not

only was the United States self-sufficient, but produced a large exportable surplus. Since that time, under various legislative enactments and at various price levels, the domestic production has been a

decreasing one. In other words, among the several points brought

out by the history of the domestic production of mercury, are the

exhaustion of the reserves of the country at various price levels; the

temporary effect of a. tariff ; the lack of effect of a subsequent increase of

two and one-half times the original tariff; the exhaustion of reserves

by the artificial pegging of the price by foreign producers.

According to the last decennial census of the Bureau of the Census,

the number of miners employed in the mercury industry in the United

States was slightly over one thousand. In 1930, broadly, slightly

more than 85% of the domestic requirements was the product

of domestic mines. It may therefore be assumed that were other

things equal, should the domestic supply be met by domestic production, it would mean that slightly over 1,300 men might be employed. In 1930, the average price per flask at New York was $115.01.

The present domestic price is $67.538. If the immediate future

trends of an industry can be judged by a study of past performance,

it would seem that in the case of mercury in order to repeat the

history of 1930, a price in excess of $130.00 per flask woutd be required.

A fact that should be given consideration is that in the past, as has

been stated, the domestic reserves of mercury have been drawn on

at various price levels and in many cases exhausted at the then

existing price. It therefore, becomes evident that if prices were

restored to the high levels of the past, the equivalent production could

not in the future be duplicated unless technology had supplied a

means of greatly reducing the cost of production, thus making commercially available material of extremely low-grade.

Production of mercury is confined to eight states and Alaska. Of

the 1929 production of 23,682 flasks (76 pounds), California supplied

43%, Nevada 20%, Oregon 15%, Washington 6% and Texas, Arizona

and Alaska the remaining 16%.
306

From 1922 to 1931, inclusive, the apparent domestic consumption

of mercury ranged between 20,500 flasks (1931) and 38,500 flasks

(1926). Our position has been and is that of an importer and any

variations therefrom in the past decade have been of temporary duration. Foreign ores are richer than ours and production costs are

lower.

Because of the great decline in the production of domestic mercury

for reasons of decreased demand because of depression, plus the

influence of the European cartel, the American Quicksilver Industry

has been in a very depressed and chaotic state. The Industry has

degraded to the point of ainost not, being an Industry in accordance

with outr definition for Industry under the terms of the Act. Because

of mercury occupying a very prominent position in the list of emergency War interials for the use of making fulminates, and the more

recent industrial demand for Mercury Vapor Boilers, and the hope

that protection can be given the domestic industry by way of curbing

dumping' " of distressed cartel mercury on the American market, the

application of a Code of Fair Competition for the Quicksilver Industry

has been allowed:

AriCLE I. Purpose.---States the purpose of the Code.

ARTICLE HI. -f, jtu/fl. Accurately defines specific terms applicable to the Quicksilver Industry as used in this Code.

ARTICLE IlI. Hour.,.-The maxiniui hours are limited to forty

hours per week for employees engaged in the mining and processing

of products and labor incident thereto. Watchmen, according to the

nature of their responsibilities may be permitted to work either

eighty-four hours in any two week period or forty-eight hours in any

one week period. Office, salaried and other employees not covered

by the above who receive less than $35.00 per week shall not be

permitted to work in excess of forty hours in any one week except

that during any one week in any one month period they may be

permitted to work forty-eight hours in such week. Employees

en(raoed in an executive, managerial or supervisory capacity who

receive not less than $35.00 per week and employees other than those

engaged in processing or labor operations directly incident thereto

are not subject to any hourly limitations. The maximum hours

shall not apply in cases of emergencies or repairs where the safety of

life or health or the protection of property necessitates longer hours.

A 10% tolerance over the forty hour maximum is allowed to

employees engaged in the preparation, care and maintenance of

machinery and production facilities, stock and shipping clerks and

truckimen engaged in outside delivery and pick-up service. The

limitation as to hours of a twenty-four hour day shall not apply in

such cases where the restriction of hours of labor of highly skilled

workers in continuous process would unavoidably reduce production.

No employee shall be permitted to work more than six days in any

seven day period.

ARTICLE IV. 1Wages.-The minimum wage for employees engaged

in mining 1nd the processing of products or any labor incident thereto

is at the rate of 42 '2 per hour, with the proviso that in the Southern

district the mininimmn rate for such labor shall not be less than 30$

per liu r. Such minimimn rates are to apply to totally unskilled and

('0111Om0n h1bor. No person engaged in clerical or office work shall be

paid less thanl at thme rate of $15.00 per week except that office boys
307

and girls may be paid a minimum of 80% of the established minnmum

for office employees. The established iinimmini rate of pay in

Article IV, Section 1, shall apply irrespective of whether an employee

is actually compensated on a time rate, piece rate or other basis.

Provision is made for the employing of handicapped persons. Provision is also made for connissary employees wh(o shall be paid not

less than 80% of the ininimun wage provided for in Article IV,

Section 2. Female employees performing substantially the same

work as male employees shall receive the same rate of pay as male

employees. Provision is also made for the adjustment of wages above

the minimum.

ARTICLE V. General Labor Proiisions.-Provides that no employer

shall employ any person under 18 years of age. This Article also sets

forth mandatory provisions respecting the rights of employees to

organize and bargain collectively. This Article also provides for

matters having to do with reclassification of employees, standards

for safety and health, the observance of State Lax s, the posting of

complete copies of the Code and the natter of Company Towns and

Stores and the payment of wages.

ARTICLE VI. Establishes a Code Authority consisting of nine

members, five of whom shall be selected from the Executive Committee

of the National Quicksilver Producers Association, one of such members shall be the Secretary of the Association and two such members

shall be members of the Industry selected by the Association, and one

other such member shall represent the nonmembers of the Association.

In addition to the nine members named above, there may be one or

three representatives, without vote, to be appointed by the Administrator to serve without expense to the Industry for such terms as he

may specify. In addition to the organization of the Code Authority,

the Powers and Duties thereof are also outlined in this Article.

ARTICLE VII. Marketing and Trade Practice Rule.-This Article

sets forth an open price schedule and trade practices for the Industry.

ARTICLE VIII. Erport Trade.-No provision of this Code relating to

terms of selling, shipping or marketing shall apply to export trade or

sales or shipments for export trade.

ARTICLE IX. Alodifications.-This Code and all the provisions

thereof are expressly made subject to the right of the President in

accordance with Sub-section (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. Provision is also made for recommendations

to the Administrator for modifications of this Code by any interested

party or by the Code Authority.

ARTICLE X. Monopolies.-No provision of this Code shall be so

applied as to permit monopolies or monopolistic practices or to eliminate, oppress or discriminate against small enterprises.

ARTICLE XI. Effective Date.-This Code shall become effective

ten days after its approval by the Administrator.

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

having found as herein set forth and on the basis of all the 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
308

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

agric tiltural 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

Sub-section (a) of Section 3, Sub-section (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association

is an industrial association truly representative of the aforesaid Industry, and that said 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,

HUGH S. JOHNSON,

Administrator.

MARCH 21, 1934.
CODE OF FAIR COMPETITION FOR THE QUICKSILVER

INDUSTRY

ARTICLE 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 Quicksilver Industry, and its provisions are the standards of

fair competition for such Industry and are 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 approved by the President, June 16, 1933, and any

amendment thereto.

SECTION 3. The term "Administrator" means the Administrator

for Industrial Recovery.

SECTION 4. The term "Industry" as used herein means the mining

of and/or processing of ores in which quicksilver (mercury) represents

the principal recoverable constituent and/or the sale of any mercury

by such producer or processor which includes without limitation any

person or corporation keeping a subsidiary or controlling relationship

or one of joint ownership with any such producer and/or processor.

SECTION 5. The term "Member of the Industry " includes all those

engaged in the Industry, either as an employer or on his or its own

behalf.

SECTION 6. 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.

SECTION 7. The term "Employer" means anyone by whom any

such employee is employed or compensated.

SECTION 8. The term "Flask" as used herein means a standard

container for quicksilver containing 76 net pounds avoirdupois of

quicksilver.

SECTION 9. The term "Executive Committee" as used herein

means the Executive Committee of the National Quicksilver Producers Association.

SECTION 10. The term "Secretary" means the Secretary of the

National Quicksilver Producers Association.

SECTION 11. The term "Southern District" as used herein means

the States of Texas, Arkansas, Louisiana, Mississippi, Tennessee and

Alabama.

4776--425-113-34-2 (309)
310

ARTICLE I1I-HoURS OF LABOR

SECTION 1. Maxi/nimn IlourX.---On and after the effective date of

this Code, no employee shall work or be permitted to work in excess

of forty (40) hours in any one week or eight (S) hours in any twentyfour (24) hour period, except as herein otherwise provided. A

normal work day shall not exceed eight (S) hours.

SECTION 2. Iourx For Clerical And' Office Employlee.-On and

after the effective date of this Code no person employed in clerical or

office work shall be permitted to work more than an average of forty

(40) hours per week during any one month period, nor more than

forty-eight (48) hours in any one week. A normal work day shall

nlot exceed eight (8) hours.

SECTION 3. Perception a.q to Iiolr.-The limitation as to hours of

labor. z> specified in Sections 1, 2 and 4 of this Article III, shall not

apply to the follow ing:

(a) To employees engaged in emergency maintenance or emergency

repair work, involving breakdown, or the protection of life or property;

provided that in any such special cases at least one and one-half (1 

times the normal wage rate for any employee so employed shall be

paid for all hours worked in excess of the forty (40) hours in any one

week or eight hours in any one day; provided that this overtime provision shall not apply in cases of catastrophes involving loss of life.

Such special cases, however, shall be reported to the Code Authority.

(b) Nor to outside sales or sales service men; nor to persons in a

Mnan a serial, executive or supervisory capacity who receive not less

than 835.00 per week;

(ci Nor to watchmen who, according to the nature of their responsibilities, may be permitted to work either eighty-four (84) hours in

alnv two-week period; or forty-eight (4S) hours in any one-week

period, provided such employees shall have at least one day's rest in

-seven day period;

(d) There may he a tolerance of 10% additional hours over the

forty (

4 0 " hours in any one week for employees engaged in the prepria tion, care and maintenance of machinery and production facilities,

stock and shipping clerks, and truckmen engaged in outside delivery

and pick-up service; provided, however, that at least one and one

half 1 %) times the normal wage rate for any employee so employed

shall he paid for all hours worked in excess of eight (8) hours per day

Or forty (40) hours in any one week;

e The limitation as to hours of a twenty-four (24) hour day shall

not apply to such cases where restrictions of hours of labor of highly

sh killed workers in continuous processes would unavoidabl y reduce

production. provided, however, that such employees in any such

special cases shall not work more than forty-eight (48) hours in any

one week: and provided that in such special cases at least one and one

hzal f i',) times the normal wage rate for any employee so employed

shall be paid for all hours worked in excess of eight (8) hours per day

or forty -0) hours in any one week.

Si:c:i'ox 4. 'Stuidard hlu'-No employee shall be permitted to

Work more than six days in any seven-lday period.

Si :-rioN 5. Ei lit nu B/ Sccral Jmiploqers.-No employer shall

\110wil02y permit any employee to work for any time, which, when

totdled witi that already performed with another employer or em-
311

ployers in this Industry or any other Industry, exceeds the maximum

permitted herein.

ARTICLE 1 --- WAGES

SECTION 1. Alun1um ll ges.--On and after tile effect ive date of

this Code no employee, except as herein otherwise specified, shalt be

paid in any pay period less than at the rate of 42.e per hon1r; provided,

however, that in the Southern District the mniumii rate that shall

be paid in any pay period shall be 300 per hour.

SECTION 2. Clerical and Office Enmployees.- No accounting, clerical,

office, sales or service employee working on a weekly basis in any

office shall be paid less than at the rate of fifteen ($15.00) dollars per

week; provided, however, that office boys and girls and messengers

shall be paid at a rate not less than 80% of the minimum 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 such employees of any office of any one employer,

but in any case each employer shall be entitled to one such employee.

(a) Commissary employees, excluding cooks, shall be paid not less

than 80% of the minimum wage ($15.00) provided for in Section 2 of

this Article, and provided further that the total number of such commissary employees so paid shall constitute not more than 5% of the

total number of employees in any camp, but in each case such

employer shall be entitled to two such employees.

PIECEWORK COMPENSATION

SECTION 3. Minimum Wages.-This Article establishes a minimuin

rate of pay for any pay period which shall apply, irrespective of

whether an employee is actually compensated on a time rate, piecework, or other basis.

SECTION 4. Female Employees.-Female employees performing substantially the same work as male employees shall receive the same

rate of pay as male employees, and, when they displace male employees they shall receive the same rate of pay as the men they

displace.

SECTION 5. Wages Abore The Minimum.-Equitable adjustments

above the minimum in all pay schedules of employees shall be made

Within thirty (30) days after the effective date of this Code by any

employer who has not heretofore made such adjustments under the

National Industrial Recovery Act. In no event, however, shall

hourly rates be reduced. Within sixty (60) days after the effective

(late of this Code each Member of this Industry shall make a report

of such adjustment whether made prior to or subsequent to date of

approval of this Code to the Code Authority.

SECTION 6. Handicapped Persons.-A person whose earning capacity

is limited because of age, physical or mental handicap, or other

infirmity, may be employed on light work at a wage below the minimum established by this Code, if the employer obtains from the State

Authority, designated by the United States Department of Labor, a

certificate authorizing such person's employment at such wages and

for such hours as shall be stated in the certificate. Such authority

shall be guided by the instructions of the United States Department

of Labor in issuing certificates to such persons. Each employer shall

file monthly with the Code Authority a, list of all such persons eni-
312

plowed by him, showing the wages paid to, and the maximum hours of

work for such employee.

ARTICLE V-GENERAL LABOR PROVISIONS

SECTION 1. Child Labor.-On and after the effective date of this

Code, no person under eighteen (18) years of age shall be employed in

the Industry. In any State an employer shall be deemed to have

complied with this provision as to age of employees if he shall have on

file a certificate or permit duly signed by the Authority in such State

empowered to issue employment or age certificates or permits showing

that the employee is of the required age.

SECTION 2. Provisions From The Act.-(a) Employees shall have

the right to organize and bargain collectively through representatives

of their own choosing, and shall be free from the interference, restraint,

or coercion of employers of labor, or their agents, in the designation of

such representatives or in self-organization or in other concerted

activities for the purpose of collective bargaining or other mutual aid

or protection.

(b) No employee and no one seeking employment shall be required

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

from joining, organizing, or assisting a labor organization of his own

choosing, and

(c) Employers shall comply with the maximum hours of labor,

minimum rates of pay, and other conditions of employment approved

or prescribed by the President.

SECTION 3. Reclassification of Employees.-No employer shall reclassify employees or duties of occupations performed, or engage in any

other subterfuge for the purpose of defeating the purposes or provisions

of the Act or of this Code.

SECTION 4. Standards for Safety and Health.-Every employer

shall make reasonable provision for the safety and health of his employees at the place and during the hours of their employment.

Standards for safety and health for this Industry shall be submitted to

the Administrator by the Code Authority within six months after

the date of approval of this Code.

SECTION 5. State Laws.-No provision in this Code shall supersede

any State or Federal Law which imposes on employers more stringent

requirements 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.

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

complete copies of this Code, and all amendments thereto, in conspicuous places accessible to employees.

SECTION 7. Company Town and Stores.-Employees other than

maintenance or supervisory men, or those necessary to protect pro)-

erty, shall not be required as a condition of employment, to live in

houses rented from the employer. No employee shall be required, as

a condition of employment, to trade at a store owned or specified by

an employer.

SECTION 8. Payment of Wages.-An 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 payments for

pensions, insurance, or sick benefits other than those voluntarily paid
313

by the wage earners, or required by State Laws. Pay periods for

wages shall be at least semi-monthly, and for salaries at least once per

month. Employers shall agree not to withhold wages.

ARTICLE VI-ORGANIZATION, POWERS AND DUTIES OF THE CODE

AUTHORITY

ORGANIZATION AND CONSTITUTION

SECTION 1. A Code Authority is hereby constituted and shall

consist of nine voting members. Five of such members shall be

selected from the Executive Committee of the National Quicksilver

Producers Association. One of such members shall be the Secretary

of the National Quicksilver Producers Association. Two such members shall be members of the Industry (not members of the Executive

Committee) truly representative of the various interests of the Industry and shall be elected by the National Quicksilver Producers Association. One such member shall be elected by the members of the

Industry who are not members of the National Quicksilver Producers

Association, and shall be truly representative of such non-members.

The selection of all elected members of the Code Authority shall be in

a fair and equitable manner to be approved by the Administrator.

In the event that the selection of the non-member of the National

Quicksilver Producers Association is not made within thirty days

after the effective (late of this Code, such member shall be selected

by the Administrator.

In addition to the above membership, there may be one, and not

more than three members, without vote, and without compensation

by the Industry, appointed by the Administrator to serve for sixmonth or twelve-month terms, as he may specify, from the (late of

appointment.

SECTION 2. 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 Regulations, and any amendments

when made thereto, together with such other information as to

membership, organization, and activities as the Administrator may

deem necessary to effectuate the purposes of the Act.

SECTION 3. 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 lie 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.

SECTION 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 selection of the members thereof by assenting to

and complying 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, subject to review and approval by the Administrator, on the basis of volume of business and/or such other factors as

may be deemed equitable.
314

SECTION 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 any 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 wilful misfeasance or nonfeasance.

POWERS AND DUTIES

SECTION 6. Subject to such rules and regulations as may be issued

by the Administrator, the Code Authority shall have the following

further powers and duties, the exercise of which shall be reported to

the Administrator and shall be subject to his right, on review, to

disapprove any action taken by the Code Authority. 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 unless he shall fail to disapprove after thirty days'

notice to him of intention to proceed with such action in its original

or modified form.

(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, 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 Federal or State agencies as the Administrator 1nay 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 suich 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 sluill relieve the Code Authoi-ty of its

(1uties or responsibilities under this Code and that such trade associations and :Igecices shall at all times be subject to and comply with

thIe proVisins hereof.

(e) T)o intake rvecomiiendationis to the Administrator for the coordination (4 the adini listiati(In (f this Code with such other Codes, if any,

its ni be related to the 1ndustrV

J) lo coI opate with the Adininistrator in reghilaiting the use of

aiv N.l.A. insignia solely by those members of the Industry who

hae asseIited to, aiid are complying with, this Code.
315

(g) To recommend to the Administrator further fair trade practice

provisions to govern members of the Industry ill their relations with

each other or with other industries and to reconmen(d to the Adiministrator measures for industrial planning, inchiding stabilization of

employment.

ARTICLE NIl--ARKETING AND TRADE PRACTIcE, RULES

SECTION 1. Price Schiedules.-E very imiember of the Industry within

ten (10) days after the effective date of this Code shall file with the

Code Authority the price or prices and terms or conditions of sale at

which he is offering his products for sale; this original filing to become

effective on the date of such filing. Any member of the Industry

desiring to change the prices of his products or terms or conditions of

sale, shall do so by notifying the Code Authority of the desired

changes, which shall become effective upon the date of such notice.

All schedules of prices, terms and conditions of sale shall be available

to members of the industry and to the public.

SECTION 2. Trade Pracice Rules.-The followingi' trade practices

are declared to constitute unfair methods of coipetiti n between

members of the Industry, and no member of the Industrv shall use

any of them, either directly or indirectly, through any oflicer, agent

or employee. The violation of any one or more of these, or .Iny

further trade provisions which hereafter may be establlished, shall

be deemed a violation of this Code.

(1) The secret payment or allowance of rebates, refunds, commissions, credits or unearned discounts, whether in the form of money

or otherwise, or the secret extension to certain purchasers of special

services or privileges not extended to all purchasers on like terms and

conditions.

(2) The prepayment of freight charges with the intent or with the

effect of granting discriminatory credit allowance.

(3) The allowance in any form of adjustments, discounts, credits

or refunds, for the purpose or with the effect of altering retroactively

the price quoted in such manner as to create price discrimination.

(4) The pre-dating or post-dating of any invoice or sales contract

except to conform to a bona-fide agreement entered into on the

pre-date.

(5) The false marking of any product of the Industry or the intentional misrepresentation of analysis of content or of any size or

weight of standard flask or the making of, causing or permitting to

be made or publishing of any false, misleading or deceptive statement by way of advertisement, invoice, or otherwise concerning the

size, quality, quantity, character, nature, preparation or origin of

any industry product.

(6) The defamation of competitors by falsely imputing to them

dishonorable conduct, inability to perform contracts, questionable

credit standing, or by other false representation or by false disparagement of the grade or quality of their goods.

(7) The unauthorized use in written or oral form of trade-marks,

trade names or slogans used by a competitor.

(8) No member of the Industry shall induce or attempt to induce

the breach of an existing contract between a competitor and his

customer or source of supply, nor shall any such member interfere
316

with or obstruct the performance of such contractual duties or

services.

(9) No member of the Industry shall ship goods on consignment

except where peculiar circumstances of the Industry require the

practice. Such exceptions shall be defined by the Code Authority

with the approval of the Administrator, and shall apply alike to all

members of the Industry.

(10) No member of the Industry shall require that the purchase or

lease of any goods be a prerequisite to the purchase or lease of any

other goods.

(11) No member of the Industry 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 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.

(12) No member of the Industry shall publish or circulate unjustified or unwarranted threats of legal proceedings which tend to or have

the effect of harassing competitors or intimidating their customers.

Failure to prosecute in a reasonable time shall be evidence that any

such threat is unwarranted or unjustified.

(13) Aiding or abetting any person, firm, association, or corporation

in any unfair practice.

(14) Procuring, otherwise than with the consent of any member of

the Industry, any information concerning the business of such member

which is properly regarded by it as a trade secret as held confidential

within its organization, other than information relating to a, violation

of any provision of this Code.

(15) Knowingly shipping a lower grade of material than is described

in the contract or order.

(16) Deviating from the published and previously established

specifications, for the purpose of influencing a customer or prospective

customer.

(17) Failing to file price schedules or changes therein, as required

by Section 1 of this Article.

(18) Selling of any Industry product by a member of the Industry

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

of such member, or deviation from the conditions of sale contained in

such schedules filed pursuant to Section 1 of this Article.

ARTICLE VIII-IExPORT TRADE

No provision of this Code relating to terms of selling, shipping or

marketing, shall apply to export trade or sales or shipients for export

trade.

ARTICLE IX-MODIFICATION

SE*:C'riON 1. This Code and all the provisions thereof are expressly

made stlbject to the right of the President, in accordance with the

provisions of subsection (b) of Section 10 of the Act, from time to
317

time to cancel or modify any order, approval, license, rule, or regulation issued under said Act afnd specifically, but without liitation, to

the right of the President to cancel or modify hi s approval of this Code

or any conditions imposed by him upon his approval theree.

S1cCTIoN 2. Such of the provisions of this Code as are not required

to be intcluded therein by the Act may, with the approval of the

Adiiiinistrator, be amended as provided in Section 3 hereo f, in such

manner as niav be indicated by the needs of the public, by cliumgrcs in

circumlistances, or by experience: all the pr(visi ns of ti,11 CM( de,

unless so modified or eliminated, shall remain in effect until the

expiration date of Title I of the Act.

SECTI0o 3. An amendment may be proposed by any in terefted

party either to the Code Authority or direCtly 1by or to the Admi nistrator. All proposed amendments shall be referredl to the Code

Authority, who shall give members of the Industry an opportunity

to be heard thereon, and thereafter the Code Authority mniay make

such recomnmendations thereon as is deemed proper, prov(lded, however, that when approved by the Administrator as necessary to

effectuate the policies of the Act, after such notice and hearing as he

nay prescribe, any proposed amendment shall thereupon become

effective as a part of this Code.

SECTION 4. The Code Authority inay make recommnendations for

modifications of this Code to the Administrator which shall become

effective as a part of this Code upon approval by the Administrator

after such notice and hearing as he may prescribe.

ARTICLE X-MONOPOLIES

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate

against small enterprises.

ARTICLE XI-EFFECTIVE DATE

This Code shall become effective beginning ten days after its

approval by the Administrator.

Approved Code No. 351.

Registry No. 1218-8-04.

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UNIVERSITY OF FLORIDA

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