'· 

Approved Code No. 448 Registry No. 1031-3-03 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

OPTICAL WHOLESALE 

INDUSTRY AND TRADE 

u 

AS APPROVED ON MAY 31, 1934 

WE DO OUR PAR'f 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 193-i 

For sale by the Superintendent of Documents, WashiJliton, D.C. - • • • • • • • Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamber of Commerce Building. 

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

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chambet" of Commerce Building. 

Kansas City, Mo. : 1028 Baltimore A venue. 

Los Angeles, Calif. : 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va. : 406 East Plume Street. 

Philadelphia, Pa. : 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 448 

CODE OF FAIR COMPETITION 

FOR THE 

OPTICAL WHOLESALE INDUSTRY AND TRADE 

As Approved on May 31, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION FOR THE OPTICAL w H OLESALE 

INDUSTRY AND TRADE 

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 Optical WholesRle Industry and Trade, 

and hearings having been duly held thereon and the annexed report 

on said Code, conta.ining 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 j do hereby incorporate by reference said 

annexed report and do tind 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, provided, that the 

fallowing changes be, and the same hereby are, made : 

( 1) That Sections 1 and 2 of Article III, be and they hereby 

are, eliminated, and in lieu thereof, the following provision be, and 

it hereby is, inserted: 

" 1. No employee shall be permitted to work in excess of forty 

( 40) hours in any one week, e~cept that any emJ?loyee may be 

permitted to work for a maximum of forty-eight ( 48) hours per 

week during any twelve (12) weeks in any fifty-two (52) week 

period." : 

(2) That Subsection 1, Section 6, Article VI, be amended, and 

the same hereby is, to read as follows : 

"(1) To provide facilities for arbitration, other than in labor 

disputes, and subject to the approval of the Administrator, to prescribe rules of J?rocedure and rules to effect compliance with awards 

and determinat10n." 

64007°-657-5-34 (61) 
62 

(3) That Section 5 of Article VII be, and the same hereby is, 

eliminated from the Code. 

(4) That Sub ection (a), Section 11 of Article X be amended, 

and the same hereby is, to read as follows : 

" (a) The Code Authority shall, subject to the approval of the 

Administrator, as soon as practicable, issue a list of such allowances 

on all opthalmic equipment and machinery, classifying the same 

by name, type and model. Allowances shall not be made in excess 

of the amounts named in this list. 

Pending the issuance thereof, and after the issuance thereof, in 

the case of items not included in such list, no member of the industry and trade shall allow on merchandise trade in more than a 

fair resale price, minus the cost of reselling on the goods or equipment taken in trade." 

HUGH s. JOHNSON, 

Admin-istrator for Industrial Recovery. 

Approval recommended: 

GEO. L. BERRY 

Division A ~dministrartor. 

WASHINGTON, D. c., 

May 31, 1934,. 
REPORT TO THE PRESIDENT 

THE PRESIDENT' 

The W liite H ouse. 

Sm: A Public Hearing on the Code of Fair Competition for the 

Optical ,vholesale Industry and Trade., submitted by a Code Committee represent:ng approximately 80 percent of the volume of 

business of said Trade, was conducted in ,v ashington on December 

4, 1933, in accordance with the provisions of the National Industrial 

Recovery Act. 

The maximum hours permitted under this Code are forty ( 40) in 

any one week. Provision is made for 96 hours extra work "in any 52 

week period, provided, that any employee working these extra hours 

will be granted leaYe with pay for a period equal to the overtime 

worked. · 

The minimum wage provided in this Code is $16.00 per week of 

forty ( 40) hours. Learners, who are limited to a six months learning period, are to be paid 80 percent of the minimum wage. Messengers are to be paid at the rate of $12.00 per week. Provision is 

made for an equitable adjustment of the wage above the minimum. 

The members of the Optical ,vholesale Industry and Trade, in 

addition to performing the usual functions of wholesale distribution, 

are engaged in the vast majority of establishments in the fabricating of lenses from the rough, semi-finished or uncut form to a finished product to conform to the practitioner's prescription, and the 

fitting of these lenses to a suitable spectacle or eyeglass frame or 

mounting. 

Prescriptions cannot be handled in volume and styled to a definite 

pattern inasmuch as each unit must be handled separately to meet 

certain individual requirements. It is necessary to have a flexible 

organization capable of handling a varying volume of work with at 

least a small percentage of the employees being able to perform 

various operations in prescription work in order to properly fabri. 

cate the yarying types of work that come into the shop. It is necessary to maintain prompt service at all times and this requires a 

skeleton force, almost equal to the full time force, to handle orders 

which cannot be anticipated. The demand is occasioned by the 

highly personal character of the product, in that it meets the urgent 

needs of a wearer who would otherwise be unable to see with comfort 

and perform his usual duties. 

There were 5,700 wage earners employed in this industry in the 

fir t part of 1933. The 40 hour week -would necessitate the reemployment of about 1,100 wage earners or an increase of slightly more 

than 16 percent. 

As a result of the increase in minimum wages, and in the total 

number employed, it has been estimated that the increase in total 

wages since the President's Reemployment Agreement is about 7 

percent over the wage total prior to that date. 

(6.3) 

• 
64 

FINDINGS 

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 

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 purehasing 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 

group is an industrial group truly representative of the aforesaid 

Industry; and that said group imposes no inequitable restrictions 

on admission to membership therein. 

(cl) 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 engage l in other steps of the economic process have 

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

Code. 

This Industry has cooperated in a most satisfactory manner with 

the Administrator in the preparation of this Code. From evidence 

adduced during the hearing and from recommendations and reports 

of the various Advisory Boards it is believed that this Code as now 

proposed and revise.cl represents an effective, practical, equitable 

solution for this Industry and for these reasons this Code has been 

approved. 

Respectfully, 

Huon S. JOHNSON, Administrator. 

M AY 31, 1934. 
CODE OF FAIR COMPETITION FOR THE OPTICAL 

WHOLESALE INDUSTRY AND TRADE 

ARTICLE I-PURPOSES 

To effect the policies of Title I of the National Industrial Recovery Act, this Code is submitted as a Code o,f Fair Competition for 

the Optical "\Vholesale Industry and Trade and upon approval its 

pro, isions shall be the standards of fair competition for such Industry and Trade and binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Optical Wholesale Industry and Tr.a.de" as used 

herein shall mean the wholesale distribution to the optical retail 

and wholesale trade, of spectacles, oxfords, lorgnettes and other 

ophthalmic frames, mountings and accessories, all ophthalmic lenses, 

eyeglass and spectacle cases, parts, artificial eyes, sun-glasses, industrial goggles and eye protectors when equipped with prescription 

lenses, and the servicing of prescriptions and otherwise servicincr 

eye wear and ophthalmic products, at wholesale to the optical retnil 

and wholesale trade. 

The term also includes the sale to the retail trade of instruments, 

equipment, tools, machinery and furniture for use in examining eyes 

and making, fitting and repairing ophthalmic products. 

2. The term " member of the industry and trade " as used herei.n 

includes, but without limitation, any individual, partnership1 association, corporation or other form of enterprise engaged 1n the 

Optical "\Vholesale Industry and Trade, either as an employer 

or on his or its own behalf. 

3. The term " employee " as used herein includes any and all 

persons engaged in the industry and trade, however compensated, 

except a member of the industry and trade. 

4. The term" employer" as used herein includes anyone by whom 

such employee is compensated or employed. 

5. The term " Optical Retailer " or " Retailer " as used herein 

shall mean a retailer who e sale of ophthalmic merchandise at retail 

prices represents more than twenty-five percent (25%) of total sales 

of ophthalmic merchandise. 

G. Population for the purposes of this Code shall be determined 

by reference to the latest Federal Census. 

7. The terms "President", "Act" and "Administrator" as used 

herein mean respectively the President of the United States, Title I 

of the ational Industrial Recovery Act and the Administrator for 

Industrial Recovery. 

(65) 
66 

ARTICLE III-I-IoURs 

L In cities over 200,000 population or the imn1ediate trade area 

of such city, no employees, except as hereinafter specified, shall be 

permitted to work in excess of forty ( 40) hours in any one week, 

except that any employee may be permitted to work for a maximum 

of fo:rty-eight (48) hours per week during any twelve (12) weeks in 

any fifty-two ( 52) week period. 1 

2. In cities of 200,000 population or less, or the immediate trade 

area of such city, no employee shall be permitted to work in excess 

0£ forty-two (42) hours in any one week, except that any employee 

may be permitted to work for a maximum of forty-eight (48) hours 

per week during any twelve (12) weeks in any fifty-two (52) week 

period.1 

3. In no event shall any employee be permitted to work in excess 

of ten (10) hours in any twenty-four (24) hour period, except when 

actually engaged in emergency maintenance or emergency repair 

work, provided, however, that all such instances of emergency overtime work shall be reported immediately to the Code Authority. 

4. The maximum hours herein established shall not apply to persons engaged in a managerial, supervisory and/or executive capacity, 

who are paid thirty-five dollars ($35.00) or more per week, nor to 

outside sale...i;;men. 

5. E ach employee shall be granted leave of absence with pay for 

a period equal to the overtime worked as permitted and limited in 

Sections 1 and 2 of this Article. Such leave of absence shall be 

granted in daily periods, to be agreed upon be.tween employer and 

employee, within the calendar year in which the overtime occurs, 

provided, however, that the following holidays, namely, New Years 

Day, i1emorial Day, Fourth of July, Labor Day, Thanksgiving and 

Christmas, shall not be considered as leave of absence under the above 

rule. 

( a.) If any employee voluntarily or involuntarily leaves the employ of an employer before said employee has been allowed leave 

of absence sufficient to compensate said employee for the overtime 

work, said employee shall be paid for such overtime based upon the 

regular hourly or weekly compensation. 

6. No employee shall be permitted to work more than six ( 6) days 

in any seven (7) day period. 

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

any time which, when added to the time spent at work for another 

employer or employers in this industry and trade, exceeds the maximum permitted herein. 

ARTICLE IV-W .AGES 

1. No employee, except as hereinafter specified, shall be paid at 

less than sixteen dollars ($16.00) per week of forty ( 40) hours or 

forty-two ( 42) hours as provided in this Code. 

1 Sec tions 1 and 2 of this .Article eliminated and fullowing inserted in lieu thereof 1 

"1. No employee sha ll be permitted to work in excess of forty (40) hours in any one week, except that any employee may be permitted to work for a maximum of forty-eight (48) ho urs per week during any twelve (12) weeks in any fifty-two (52) week period." (See paragraph 2 (1) of order approving this Code.) 
67 

2. Learner hall be paid not less than eighty per cent ( 0 ;1⁄2 ) of 

the minimum wage herein provided; provid d however, that uch 

learners thu paid hall be limited to a ix (G) month learning 

period, whe her ervecl un ler one or more employer , and provi l d 

furth r that uch 1 arners thu paid shall not ex ·e d in number the 

following s hedule: 

E tabli hment mploying si~ or le s employee hall be entitled 

to one learner thu paid; e tabliRhment employing between ev n 

and tw·enty employee inclusive, shall be entitled to two learner. , thus paid· e tabli hment employing more than twenty emplo} ee 

halt be entitled to one additional learner, thus paid, for eYery 

twenty employees or fraction thereon 

3. l\1e seng r hall be paid not less than twelve dollar. (./12.00) 

r er "eek for a forty ( 40) or forty-two ( 42) hour week, as provided 

in thi code. 4. Female performino- sub tantially the same work a male employees shall receive the same rate of pay a male employee . 5. Thi Article e tablishes minimum rates of pay which shall 

apply, irre pective of whether an employee is a, ·tually compensat d 

on time-rate, piece-work or other basis. 

6. A per...,on whos 0 earning ca1 acity i limited becan.~e of age, 

phy~i al or mental handicap may be employed on light work at a 

wage below the minimum establi heel by a Code, if the employ r 

obtain from the tate authority, de ignated by the ~nited Stntes 

D0 partment of Labor a certificate authorizing uch per on's employment. at uch wages and for c;:uch hour as shall be stated in the 

certificate. Each employer hall file monthly with the Code Authority a li t of all such persons emplo.,. ed by him, showing the 11ages 

paid to, and the maximum hours of work for uch employes. 

7. For employees who are paid thirty-fiye dollars ( '35.00) a, 11eek 

or le s, no hourly, daily or ,,eekly rates of pay chall be le , than 

uch rates exi ting as of June 16, 1933; and no employee hall be 

paid a wage rate which will yield a le · wage for the shorter full 

time ,v eek of forty ( 40) or forty-two ( 42) hour herein e ta bli heel 

than could be earned for the same class of work for the lonaer full 

time week exi ting as of June 16, 1933. Wage increases for . n h 

employees e tabli hed under P.R.A. hall at lea t be maintain l. 

ARTICLE V 

1. To person undeF eighteen (18) year of age shall be employ 1 

in the Inclu try and Trade except office bov , office girl and me senaer . o per on under ixteen (16) years of ao- hall be employ d 

in the In lu trv and Trade in any capacity. In any tate any em- ployer shall be deemed to have complied with thi provi ion a to 

age if he shall hav n file a certificate or permit duly io-necl by th 

authority in ·nch tate mpo11erecl to i ue emplo ment or ao-e 

ertifi ate or permits showing that the employ e i of the 

requir cl ag . 2. (a) Employee hall ha,e the ricrht to oro-anize and bargain 

ollec -ively through repr ntative. f their own hoo ing, an l 

hall b fre from the interf ren r traint r o rcion f emr lo.· r 

of labor or their ag nts in the cl ianation 0£ u h r pre entativ , G4 07°-GG7-5-34-2 
68 

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 re- quired 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 nrnximum hours of labor, 

minimum rates of pay, and other conditions of employment- approved 

or prescribed by the President. 3. 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. 

4. No employer shall reclassify employees or duties of occupa- . 6ons performed, or engage in any other subterfuge, so as to defeat 

the purposes or provisions of the Act or of this Code. 

5. All employers shall post and keep posted copies of this Code 

in conspicuous places accessible to all employees. Every member of 

the Industry and Trade shall comply with all rules n.nd regulations 

relative to the posting of provisions of codes of fair competition 

which may from time to time be prescribed by the Administrator. 

6. Every employer shall provide for the safety and health of 

employees during the hours and at the p]aces of their employment. Standards for safety and health shall be su bmit_ted by the Cocle 

Authority to the Administrator within six (6) months after the 

effective date of thB Code. 

ARTICLE VI-ADl\ffNISTRATION 

Organization and Constitution. 

1. A Code Authority is hereby established consisting of nine (9) 

members to be selected by the members of the Industry and Trade 

through a fair method of selection approved by the Administrator. 

In addition to membership as above provided, there may be three 

(3) members, without vote, to be known as Administration member,J, 

to be appointed by the Administrator to serve for such terms as he 

may specify. 

2. Each trade or industrial association, directly or indirectly participating in the selection or actiYities of the Code Authority, shall 

(1) impose no inequitable restriction on membership, and shall 

(2) submit to the Administrator true copies of its articles of association, by-laws, regulations, and any amendments 1\'hen made thereto, 

together with such other information as to membership, organization 

and activities as the Administrator may deem necessary to effectuate 

the purpose of the Act. 

3. In order that the Cocle Authority shall at all times be truly 

representative of the industry and trade and in other respects comply 

with the proYisions of the Act, the Administrator may prescribe such 

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

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

other respects comply with the provisions of the Act, ma.y require 

an l1P1)ropriate modification of the Code Authority. 
69 

4. Nothing contained in this Co le hall con: itut the m mbers 

of the Code Authority partn r · for any purpose. Tor ·hall any 

member of the Co 1- Authority be liabl in any rnann r to anyone for 

any act of any other memb r fficer, agent or employee of th ode 

Authority. or shall any member of the Code Authority, ex rci ing 

reasonable dilio-ence in the conduct of his duties h rcnncl0 r, b liable 

to anyone for any action or omi sion to act under this Code, except 

:for 1hi own willful mis-feasanc or non-feasancc. 

5. If the clmini trator hail determine that any action of a 

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

ontrary to the public intere. t, the Admini trator ma.y requir that 

such action be suspended to afford an opportunity for inve. tio-ation 

of the merits of such action and :further consideration by such ode 

Authority or ao·ency pending final action which shall not be cff ctive 

unless the Admini trator a pp rove. or unless he hall £ail to di - approve after thirty (30) days' notice to him of intention to proceed 

with uch action in its original or modified form . . 6. Subject to such rules and regulations as may be is ·uecl by the 

Admini trator, the Code Authority shall have the following pmvers 

and duties, in addition to tho e authorized by other provision· of 

this Code. 

(a) To insure the execution of the provisions of this Co le and 

to provide for the Complian ° of the industry and trade with the 

prm isions of the Act. 

(b) To adopt bylaws and rules and regnlations for its procedur . ( c) To obtain from members of the industry and trade such 

information and reporfa as ar.e required for the administration of 

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

the Code Authority ID.embers of the industry and trade subject to 

this Code shall furni h such statistical inform2tion as the Administrator may deem neces ary for the I urpose-s recited in Section 3 

(a) of the Act to nch Federal and State agencies as he may le ignate; provided that nothing in this Code shall relieve any member 

of the industr and trade of any existing obligations to furni ·h 

report to any G vernment agency. No individual rep rt shall 

be di closed to any other member of the industry a.nd trade or 

any other party except to such Goyernmental agencie as may be 

cl irected by the Administrator. 

f d) To ff-,ctuate :furthei' the policies of the Act, the Code Authority shall act as a planning and fair practice ag 0 nc~ for the 

optical whole ale industry and trade and may from time. to tlme 

present to the Admini trator recommendations base l n con litions 

in the indu try as they may develop hich will tend to promot the 

operation of thieo Code and the policy of the Act. 

( e) If at anv time the Co le Authority fe L:, that any pr Yi ion 

of this ode ,is beinff violutecl by any member of th"' indu tr · an l 

trade, it may reqnir reports t be sub1 ·tte 1 by su h member, certifie 1 by ome imp l'tial ao-ency an l pd on approved by th ode 

Authority and th~ m mber of the inclu try and tra<le provid d uch 

men ber f the in lu tr. an l tr, d noTe to ubmit . uch r l or ·. (f) To u e ·uch trade n ·:ociations uncl oth 0 r agen · . n i deem 

proper f r the arryina on f any f its activiti pro-vi le l for 

herein, provided that nothino- her in . hall r lic"'\"e the de \.n tl rity 
70 

of its duties or responsibilities under this Code and that su·ch trade 

as ociations and agencies shall at all times be subject to, and comply 

with the provision hereof. 

(g) To make recommenda.tions to the Administrator for the coordination of the administration of this Code with such other 

codes if any as may be related to the trade. 

(h) ( 1) It being found nece ary to upport the administration 

of this Code, in order to effectuate the policy of the Act and to 

maintain the tandar<ls of fair competition established hereunder, 

the Code Authority is authorized : 

(a) To incur uch reasonable obligations as are necessary 

and proper for the foregoing purposes and to meet such obli- gations out of funds which . hall be held in tru t for the pur- poses of the Code and rai ed as hereinafter provided ; 

(b) To submit to the Admini trator for his approval, sub- ject to such notice and opportunity to be heard as he may deem 

nee sary : 

1. An itemized budget of its estimated expen ·es for the foregoing purpo es, and 

2. An equitable basis upon which the funds nece sary to support such budget shall be contributed by all members of the 

Indu.,try and Trade entitled to the benefits accruing from the 

maintenance of such standards, and the administration thereof. 

( c) After such bud~ t and basis of contribution have been 

approved by the Adrn.inistrator, to determine and collect equitn bl contributions a · above set forth , and to that end, if neces- ·[txy to in titute legal proceedings th refor in it own name. 

(2) Each member of the industry and trade shall be liable for his 

or it equitable contribution to the expenses of the maintenance of 

t.he Code Authority a, hereinabove provided. Only members of the 

industry and trade complying with the Code and making such contribution shall be entitled to participate in the selection of the 

membern of the Code Authority or to receive the benefits of its 

voluntary activitie r to make n, e of any N.R.A. insignia. 

(i) To cooperate with the Administrator in regulating- the use of 

any N.R.A. in. ignia solely by those member of the in<lustry and 

tra le who have assented to, and are complying with, this Code. 

(j) To recommend to the Administrator any action or mea ure 

deemed advi ·able, inclnclina further fair trade practice provision 

to govern mem}J<'r of the industry and trade in their relation s 

with ea h other or with other trade or industries; measures for 

indu trial planning, and stabilization of employment, ancl including 

modifications of this Co'.le which shall become effective a part her0 of 

upon approval by the Administrator after such notice and hearing 

a he may specify. 

(k) To appoint a Trade Practice Committee which shall meet 

with the Trade Practice Committees appointed under such other 

cocles a may be related to the industry and trade for the purpose 

of formulating fair trade practices to govern the relationship betw en employers under this code and under such other codes to the 

end that ·uch fair trade practices may be proposed to the Administrator as am"n<lments to this code and such other codes. 
71 

(1) To provide facilities for arbitration, and subject to the approval of the Administrator, to pre cribe rules of procedure and 

rules to effect compliance with awards and determination.2 

7. Failure of any member f the indu try and trade to furni h any 

of the information required under this Code shall con titute a 

violation of the Code. 

ARTICLE VII-MER CHAN DI SING 

(1) Filing prioe lists.-(a) Every member of the indu try and 

trade shall file, within thirty (30) days from the effective date of 

this Code, with the Code Authority either one of the following docu- ments as set out in sub-sections (1) and (2) hereof. (1) A list of his prices which shall become effective immediatdy 

upon filing. Copies of said price lists, and any revision thereof, 

shall bear the date on which such list or lists are effective and shall 

be made available immediately to all interested persons including 

members of the industry and trade and their customers. :Members 

of the industry and trade may file revisions of their price li t with 

the Code Authority at any time. 

(2) A written statement specifying that he elects to follow a designated standard price list or designated lists previously filed with 

the Secretary of Code Authority. Price lists adopted by members 

who do not file their own price list must be followed complete· all 

extra charges, changes in price, and the like appearing on the adopted 

price list must be observed by the member a.dopting the list. ~1embers of the industry and trade, adopting a price list pursuant to this 

paragraph, are bound by the revisions in the pric0 lists so adopted 

unless they withdraw their election under this paragraph and file a 

comple.te price list or lists of their own. 

(b) The net prices ( after deduction of all discounts, allowances, 

etc.) of products listed on any price list filed or adopted by any 

member of the industry and trade shall, in every instance, represent 

at least the cost of the member filing or adopting the same. 

(2) Cost acoownting.-(a) The standards of fair competition for 

the industry with reference to pricing practices are declared to be 

as follows ( for definition of terms see sub ection ( 4) : 

1. The principle.-(i) Destructive price cutting is an unfair 

method of competition and is forbidden at all times, irrespective of 

t.he existence of an emergency; 

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

there is to be no fixed minimum basis for prices but it is intended 

that sound cost estimating methods should be used ; 

(iii) ,iVhen an emergency exists, as to any given product, sale 

below the lowest reasonable cost of such product, in violation of subsection (3) hereof, is forbidden. 

(2) NrYMJWl provision (oost estimating methods).-The ode Authority shall cau e to be formulated method o:f accounting and cost 

findng and/or stimating capable of use by all member of the industry and trade and shall submit such methods to the Admini trator 

2 Changed to read as follo,rn: "(1) To provide for facilitie. for arbitration, other 

than in labor di putes, and subject to the appt'loval of the Administrator, to prescribe rul es of procedure and rul es to effect compliance with awards and determination." See 

paragraph 2 (2) of order approving this Code. 
72 

for review and possible dic:u.pproval. Full details and in tructions 

concerning such n ethods shall be made available to all members of 

the indu~try and trad and to the Administrator and thereafter it 

is in-tended that all 111.embers should utilize the principles of such 

method . 

(3) ErnergenC'lJ provision (lowest reasonable cost).-vVhen an 

emergency exists, the Code Authority may cause an impartial agency 

to investigate costs and to determine the lowest reasonable cost of 

the p:·0dur't affected by the emergency. Such determination shall 

exclude all cost elements set forth in und shall be in all respects 

subject to such rules and regulations as may be issued by the Administrator an l subject to his approval or modification after such notice 

and opportunity to be heard as he may prescribe. The Code Authority or the Administrator may, from time to time, cause such 

determinations to be reviewed or reconsidered and appropriate action 

taken. ( 4) Definitions.-An "Emergency" exists whenever the Administrator determines that destructive price cutting is rendering ineffective or seriously endangering the maintenance of the provisions of 

this Code. 

"Destructive price cutting"-

(i) "\Vhen no emergency exists, the terms shall have the meaning 

declared in rules and regulations promulgated by the Administrator 

on 1·ecommendation of the Code Authority or on his own motion; 

(ii) '\Vhen an emergency exists, the term shall mean any sale in 

violation of subsection (3) hereof; 

(iii) It shall be an absolute defense to any charge of destructive 

price cuttin6, if an impartial agency, designated or approved by the 

Administrator, shall find, 

( aa) That the price complained of is justified by existing competition, evidence of which has been reported to the Code Authority; 

(bb) That the price complained of is justified as a method of disposal of dropped lines or seconds, or 

(cc ) "\,Vhen no declared emergency exists, that the member charged 

with destructive price cutting has in good faith endeavored to make 

proper u e of the announced cost estimnting methods. 

3. Sales B elow Cost or Prices LUJted.-(a) No member of the industry and trade shall sell, or offer to sell, at prices lower than those 

specified in price lists duly filed or adopted and/or sell, or offer to 

sell, below cost; except that obsolete, discontinued lines or surplus 

::.tocks may be disposed of, or inventory may be converted into cash 

to meet pre·~sing financial needs, at such prices as are necessary to 

uccomplish these purposes. Such stocks shall not be sold until 

fifteen ( 15) da.ys after notice thereof has been filed with the Code 

Authority, together with an itemized list of the merchandise to be 

sold. 

( 1) The cost of every member of the Optical vVholesale Industry 

and Trade hall be calculated solely on the basis of the wholesale 

bu iness conducted by such member, whether or not such member 

is also engaged in the Optical Th1anufacturing Industry and/ or the 

Opti al Retail Trade. The fact that a member engages in either the 

Optical IYianufacturing Industry or the Optical Retail Trade at a 
73 

profit shall be wholly immaterial to any complaint that a member 

of the Optical Wholesale Trade has violated this article of the Code. 

4. Price Protection.-( a) It shall be an unfair trade practice for 

any member of the industry and trade to guarantee the delivery o:f 

merchandise, or to deliver merchandise, at prices other than those 

that are in effect in the printed list or lists filed by the member, or 

designated list or lists adopted by the member, on file with the Code 

Authority at the time the delivery is made. 

5. Discownts.-(a) The Code Authority with the approval of 

the Administrator, may from time to time classify optical r etailers 

for the purpose of establishing maximum trade discounts which may 

be granted by members of the Industry and Trade to such optical 

retailers. 3 

6. Dispensing for Oculists and Optonietri,sts.-(a) Where a mem.-

ber of the Industry and Trade dispenses glasses directly to a customer's patient for the account of a customer he must furnish said 

customer's patient with a printed statement which shall indicate 

plainly to the patient that the sale, replacing or repairing of glasses 

1s being made by the wholesaler for the prescriber and that the price 

charged is the retail price charged as set by the prescriber. A charge 

shall be made by a member of the Industry and Trade against tho 

prescriber for such service. 

(b) Any transaction involving secret rebates is an unfair trade 

practice. 

ARTICLE VIII-CREDIT CONTROL 

1. Terms.-(a) Except as provided in Article X, Section 14 

thereof, with respect to the sale of ophthalmological and shop equip- • 

ment on deferred payments, the maximum terms, which shall be 

given by any member of the Optical Wholesale Industry and Trade, 

shall be two percent (2%) cash premium, if remittance is dated and 

mailed by the tenth (10th) of the month following date of invoice, 

when the account is due; thereafter, the net price must be paid. 

Terms shall be stated on all invoices. 

2. Credit infor1nation.-(a) The Code Authority is hereby authorized to establish a Credit Bureau to act as the agency of the Code 

Authority in the dissemination of credit information throughout the 

Industry. Information so disseminated by it, and any other confidential credit information, shall not be revealed by any member of 

the Optical \Vholesale Industry and Trade to any customer or to 

anyone not entitled thereto. 

3. Past-due acco1.1Jnts.-(a) Interest at the rate of six percent (6% ) 

per annum shall be charged on balances sixty (60) days or more 

past due, the interest to commence from the time when the balance 

became clue. Such balance shall be reported Eromptly to the Credit 

Bureau in accordance with the Credit Bureaus recording system and 

on the :forms provided by said Bureau. 

(1) Every member of the industry and trade shall request a 

promissory note for such balances, together with the interest rate 

herein prescribed. 

8 Eliminated. (See par. 2 (3) of order approving this Code.) 
74 

ARTICLE IX-QUALITY MAINTENANCE 

1. In view of the importance of the high quality of ophthalmic 

merchandise to the preservation and improvement of eyesight, the 

Code Authority may from time to time pi'omulgate rules and regulations specifying and defining tbe quality of ophthalmic merchandise 

which may be sold by members of the Optical ,vholesale Industry 

and Trade. Such rules and regulations, when approved by the 

Administrator, shall have the same force and effect as the provisions 

of this Code. 

2. No member of the industry and trade shall knowingly purchase 

ophthallnic merchandise for resale which shall be manufactured 

wholly or in part under circumstances which violate the provisions 

of any such code or codes of fair competition under the National 

Industrial Recovery Act as may, from time to time, be in force with 

respect to the manufacture of such merchandise. 

ARTICLE X-UNFAm TnADE Pr.21.cTICES 

1. No member of the industry and trade shall publish advertising ( whether printed, radio, display or of any other nature) which 

is misleading or inaccurate in any material particular, nor shall any 

member in any way misrepresent any goods ( including, but without 

limitation, its use, trade-mark, grade, quality, quantity, origin, size, 

sub tance, character, nature, finish, material, content or preparation) 

or credit terms, values, policies, services or the nature or form of the 

business conducted. 

2. No member of the industry and trade shall publish any statement, advertisement or representation which falsely lays claims to a 

policy, or continuing practice of generally underselling competitors. 

3. No member of the industry and trade shall publish advertising, 

which refers inaccurately in a.ny material particular to any competi~ors or their goods, prices, values, credit terms, policies or 

services. 

4. No member of the industry and trade 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 

pa1·ty, without the knowledge of such employer, principal or party. 

This 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. 

5. No n1ember of the industry and trade shall operate a separate 

optical business whether wholesale or retail; or own or control, either 

by stock ownership or otherwise, directly or indirectly, any such 

separate optical business, except, (a) where such separate business 

is operating under the same firm or trade name as that of tl:ie member 

owning, operating or controlling the same, or under a name which 

clearly discloses the fact of such operation, ownership or control; 

or (b) where full details of the operation, ownership _or control of 

such separate business have been previously filed with the Secretary 
75 

of the Code Authority by the member owning, operating or controlling such separate business, and such information shall be available to any interested party. 

6. No member of the indu try and trade hall advertise in programs of n1eetings, conventions or social affair · conducted by members of societies of the ophthalmic profession. 

7. No member of the industry and trade shall offer or make any 

payment or allowance of a rebate, refund, commi sion, credit, unearned discount or excess allowance, whether in the form of money 

or otherwise, nor shall a member of the industry and trade offer or 

extend to any customer any special service or privilege not extended 

to all customers of the same class, for the purpose of influencing a 

sale. 

8. No member of the industry and trade shall make price discriminations between different purchasers or between different localities which prices are not bused on legitimate cost, or sales and 

delivery costs. This provision, however, shall not apply with respect 

to clergymen, religious and charitable institutions, ales to a member's employees, or to persons whose inability to pay has been established by a reputable social service agency. 

. 9. No member of the industry and trade shall bill small quantities 

at rates applying to larger quantities, or sell merchandise at quantity, 

rates and perrr1it the buyer to withdraw his purchases from stock 

in small quantities according to his current needs ( except in the case 

of customers' printed cases held for delivery with prescription jobs). 

10. No member o-f the industry and trade shall withhold from or 

insert in any quotation or invoice any statement that makes it inaccurate in any material particular. 

11. No member of the industry and trade shall make exces"'i ve 

" trade in " allowance.s. 

(a) The Code Authority shall, as soon as practicable, issue a 

list of such allowances on all ophthalmic equipment and machinery! 

classifying the same by name, type and model. Allowances shal 

not be made in excess of the amounts named in this list. 

Pending the issuance thereof, and after the issuance thereof, in 

the case of items not included in such list, no member of the Industry 

and Trade shall allow on merchandise traded in more than a fair 

resale price, minus the cost of reselling on the goods or equipment 

taken in trade! 

12. No member of the industry and trade shall accept single 

frames, mountings or parts _for exchan~e unless in condition suitable 

for return to stock. If suitable and if accepted by the seller they 

shall be credited to the purchaser at not more than the price at 

which purchased and items furnished in exchange shall be charged 

at the prevailing pre.scription price. 

' Subsection (a) amended to read as follows: 

"(a) The Oode .Authority shall, subject to the .Approval ot the Administrator, as soon 

as practicable, issue a list of such allowances on all ophthalmic equipment and machinery, classi!ying the same by name, type and model. .Allowances shall not be made in excess 

of the amounts named in this list. 

Pending the is uance thereof, and after the issuance thereof, in the case of items not 

included in such list, no member ,of the industry and trade shall allow on merchandise 

trade in more than a fair resale price, minus the cost of reselling on the goods or equip. 

mcnt taken in trade." (See par. 2 (4) of order approving this Code.) 
76 

(a) Lenses, fitting sets or samples are not subject to exchange or 

return for credit except for defects of manufacture, delays or errors 

in filling orders. 

13. No member of the industry and trade shall ship merchandise, 

supplies, samples or fitting cases on consignment, except that lorgnettes, oxfords and artificial eyes may be shipped on consignment, 

provided, they are not subject to return ·after fifteen (15) days, except that for legitimate credit reasons where such merchandise is 

returned after fifteen days, the complete circumstances shall be reported to the Code Authority, and except that ophthalmological instruments and equipment may be consigned for demonstration and 

trial for a period not to exceed thirty ( 30) days. 

14. The Code Authority may establish a uniform contract for the 

sale of opthalmological and shop equipment on a deferred pay1nent 

plan and, when such contract is approved by the Administrator, all 

members of the Industry and Trade shall use the same. 

15. No member of the industry and trade shall deliberately infringe on or evade patei'l.ts or imitate trade marks or trade names 

with intent to mislead or deceive purchasers. 

ARTICLE XI-EVASION 

1. No member of the industry and trade shall engage in any subterfuge to defeat the purposes or fK'Ovisions of the Act or of this Code. 

ARTICLE XII-MODIFICATION 

1. This Code and all the provisions thereof are expressly made subject to the right of the President, in accordance 1Vith 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. 

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

included herein by the Act may, with the approval of the Administrator, be modified or eliminated in such manner as n1ay be indicated _by the needs of the public, by changes in circumstances, or by 

experience. 

ARTICLE XIII-MONOPOLIES 

1. No prov1s10n of this Code shall be so applied as to permit 

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

ARTICLE XIV-PRICE INCREASES 

1. Whereas the policy of the Act to increase real f urchasing 

power will be made more difficult of consummation i prices of 

g.oods and services increase as rapidly as wages, it is recognize!3-

that price increases except such as may be required to moot ind\-

vidual cost should be delayed, but when made such increases should, 
77 

so -far as possible, be limited to actual additional increases in the 

seller's costs. 

ARTICLE XV-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approval by the President. 

Approved Code No. 448. 

Registry No. 1031-3- 03. 

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UNIVERSITY OF FLORIDA 

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