Approved Code No. 400 Registry No. 1009-05 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CELLULOID BUTTON 

BUCKLE AND NOVELTY 

MANUFACTURING INDUSTRY 

AS APPROVED ON APRIL 20, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 6 ce nts 

v 
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.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

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, Customhous3. 

New York, N.Y.: 734 Customhouse. 

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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. 400 

CODE OF FAIR COMPETITION 

FOR THE 

CELLULOID. BUTTON, BUCKLE AND NOVELTY 

MANUFACTURING INDUSTRY 

As Approved on April 20, 1934 

ORDER 

CoDE oF FAIR CoMPETITION FOR THE CELLULOID BuTTON, BucKLE, 

AND NoVELTY MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of theN ational Industrial 

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

Fair Competition for the ~lluloid Button, Buckle and Novelty 

Manufacturing Industry, and hearings having been duly heJd thereon 

and the annexed report on said Code, containing findings with 

respect thereto, having been made and directed to the Pre ident: 

NO\V, 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 Order No. 6543-A, 

dated December 30, 1933, and otherwise; do hereby incorporate by 

reference said annexed report and do find that said Cod·e 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. JoHN oN, 

.Administr(J)tor fr>r lndust1'ial Recovery. 

Approval recommended : 

SoL A. RosENBLATT, 

Division .Admilnistrator. 

WASHINGTON, D.C., 

April ~0, 193./y. 

64196°--482-141-34 (367) 
REPORT TO TI-IE PRESIDENT 

The PRE IDENT, 

The TV hite House. 

Sm: The Public H earing on the Code of Fair Competition for the 

Celluloid Button, Buckle and Novelty Manufacturing Industry, as 

proposed by the Celluloid Button, Buckle and Novelty l\1anufacturers Association, was conducted in the Mayflower Hotel, Washington, D.C. on October 12, 1933. . 

Every person who requested an appearance was fairly heard in 

accordance with regulations of the National Recovery Administration. The Code has the approval of the Labor, Industrial and Consumers' Advisory Boards of the National Recovery Administration 

and of the Legal Division. The Chairman of the Code Committee, 

upon anthorization of the Committee, has also given approval to 

the final draft of the Code on behalf of the Industry. 

The Industry, as defined in the Code, includes the manufacture of 

buttons, buckles, and novelties made wholly of celluloid or with 

celluloid as the major raw material. The accessory materials are 

metal, wood and leather, and are used for backing or strengthening 

purposes. The products of the Industry are used primarily in the 

Ladies' Garment Trade and are put on dresses, cloaks and fur coats. 

The products are also used as novelties for the Millinery Trade. 

The Industry does not produce for stock. It works exclusively on 

orders. It is estimated that the whole ready stock amounts to less 

than 5,000.00, and this is an accumulation of stock produced in 

excess of orders. 

In 1928 there were 20 concerns in the Industry with 725 employees. 

The aggregate production amounted to $2,100,000.00. In 1933 there 

were 39 concerns, and 1,550 employees. The estimated production 

was $2,800,000.00. This indicates that the number of employees has 

been more than doubled in five years. 

It was attempted first by the Doputy Administrator to combine 

the various Button Codes into one Code for the entire Industry, but 

this was found to be impracticable ina much as no unanimity could 

be reached by the representatives of the different branches of the 

Industry. However, a provision has been incoq)orated in this Code 

which, if agreed upon by all branches of the Industry, may open the 

way for a cooperative administration of the several Codes. 

The submitting Association represents 75% of the Celluloid Button, Buckle and Novelty Manufacturers in the United States, and 

88% of the volume of business. 

RESUME OF THE OODE 

Article I gives the purposes of the Code. 

Article II ets forth certain definitions. 

Article III contains the maximum hours' provisions of the Code. 

Article IV establishes the minimum wage for all employees employed in the Industry. 

Article V sets forth the general labor provisions. 

(368) 
369 

Article VI provides the general organization of the Code Authority 

and defines it powers and duties. 

Article VII defines trade practices which are unfair and shall be 

eliminated. 

Article VIII provides for employers who may be partly engaged 

in th.is Industry and partly in another. 

Article IX provides for the modification of thi Code in accordance with Section 10 (b) of theN ational Industrial Recovery Act. 

Article X states that this Code shall not permit monopolies. 

Article XI deals with price increa es. 

Article XII pecifies the effective date. 

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 supervi ion, by eliminating unfair competitive practice by promoting the fullest possible 

utilization of the present production capacity of industrie ·,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 unemr,loyment, by improving standards of labor, and 

by otherwise rehabilitating industry. 

(b) Said industry normally employs not more than 50 000 em- ployees; 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 ection (a) of Section 3, Subsection (a) of Section 7, and 

Sub ection (b) of Section 10 thereof; and that the applicant association i an industrial association truly representative of the afore aid 

indu try; and that the said association imposes no inequitable restriction on admis ion 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 enterpri e and will not operate to discriminate again t them. 

(f) Tho e engaged in other tep of the economi proc haYe 

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

ole. 

For the e rea ons the Code has been approved. 

APRIL 20, 1934. 

HuGH . JoHNS N 

.Administ1·ator. 
CODE OF FAIR COMPETITION FOR THE CELLULOID 

BUTTON, BUCKLE AND NOVELTY MANUFACTURING 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code 

of Fair Competition for the Celluloid Button, Buckle and Novelty 

:Manufacturing Industry, and shall be the standard of fair competition for this Industry, and shall be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Industry" as used herein, includes the manufacture of buttons, buckles and novelties made wholly of celluloid 

or \vith celluloid as a major raw matBrial, and such other related 

products as may from time to time be included under the provisions 

of this Code by the Administrator after such notice and hearing as 

he may prescribe. 

2. The term "member of the Industry" includes any individual, 

partnership, association, corporation or other person engaged in the 

I ndustry, either as an employer or on his own behal£. 

3. The term "employee" as used herein includes any person engaged in any phase of the Industry in any capacity receiving compensation for his services, irrespective of the nature or method of 

payment of such compensation or his interest otherwise in said 

Industry. 

4. The term "employer" as used herein includes any one for 

whose benefit such employee is so engaged. 

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

herein, shall mean, respectively, President of the United States, 

Title I of theN ational Industrial Recovery Act, and the Administrator for Industrial Recovery. 

ARTICLE III-HoURs 

1. Except as hereinafter provided, no employee shall be permitted 

to work in excess of forty ( 40) hours in any one ( 1) week, nor 

more than eight (8) hours in any twenty-four (24) hour period. 

2. No employee shall be permitted to work for more than five 

( 5) lays in any seven (7) day period. 

3. No manufacturing operations shall be performed on any Saturday or Sunday except that such operations may be performed on 

the Saturday of a week in which a legal or religious holiday occurs 

during the normal work week. 

4. The Code Authority, subject to review by the A lministrator, 

may determine the hour before which work hall not begin, and the 

(370) 
371 

hour after which work hall cea e, and may determine in which 

localities such regulations shall apply. 

5. No person employed in clerical or office work shall be permitted 

to work in exce s of forty ( 40) hours per week averaged over a 

one (1) month period. 

6. No person employed as a shipping clerk shall be permitted to 

work in exces of forty ( 40) hour per week averaged over a three 

(3) month period. 

7. Employees engaged in maintenance or in emergency repair 

work may be permitted to work more than forty ( 40) hours in any 

one week provided one and one-third (1V3 ) tim the regular hourly 

rate is paid such employees for such overtime. No watchmen . hall 

be permitted to work more than forty-four (44) hours in any 

one week. 

8. The provisions of this Article shall not apply to employees 

employed in managerial or executive capacities who earn ThirtyFive (35.00) Dollars per week or more, nor to outside salesmen. 

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

any time which, when totaled with that already performed with 

another employer or employers in this Industry, exceeds the 

maximum permitted herein. 

10. Plant operations shall be limited to one (1) shift of forty 

( 40) hours per week. 

ARTICLE IV-v' AGE R ATEs 

1. No employee shall be paid at less than the rate of Fourteen 

($14.00) Dollars per week of forty ( 40) hours. 

2. Learners may be paid at not less than the rate of eighty per 

cent (80% ) of the minimum wage provided herein for a period not 

to exceed twelve (12) weeks; provided that in no case shall the total 

number of learners employed exceed ten per cent (10% ) of the total 

number of employees. However, any employer shall be entitled to 

employ at least one learner. 

,.3. This Article establishes a minimum rate of pay which hall 

apply irrespective of whether an employee i actually compensated 

on a time rate piece rate, or other ba i . 

4. Equitable adjustments in pay schedules of all employees shall 

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

by any employer who has not heretofore made such adju 'iments under the National Industrial Recovery Act. 'Vithin sixty (60) days 

after the effective date all such adjustments made under the Act 

shall be reported to the Code Authority and the Aclmini h·ator. In 

no case hall rates be reduced. 

5. No employee now employed at a rate of pay in exces of the 

minimum herein provided hall be eli charged and rc mployecl at 

a lower rate for the purpo e of evading the pro vi ion of this ode. 

6. Female employee porforming ub tantially the ame work as 

male mplo} hall receive the same rate of pay a mal employe . 

ARTICLE V-GENERAL LABOR PROVI ION 

1. No person under sixteen (16) y ars of age shall b en1ployed 

in the Industry. No person under eighteen (18) years of age shall 
372 

be employed at operations or occupations which are hazardous in 

nature or detrimental to health. The Code Authority shall submit 

to the Administrator before May 1, 1934, a list of such operations 

or occupations. In any State an employer shall be deemed to have 

complied with these provisions as to age if he shall have on file a 

certificate or permit duly issued by the authority in such State empowered to i sue employment or age certificates or permits showing 

the employee is of the required age. 

2. 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 bar()"aining or other mutual aid or protection. 

3. 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. 

4. Employers shall com.ply with the maximum hours o£ labor, 

minimun1 rates of pay, and other conditions of employment approved or prescribed by the President. 

5. No employer shall reclassify employees or duties of occupation 

performed or engage in any subterfuge so as to defeat the provisions of the Act or of this Code. 

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

employees at the place and during the hours of their employment. 

Standards for safety and health shall be submitted by the Code 

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

effective date o£ this Code. 

7. No provision in this Code shall supersede any Federal or 

State law which imposes more stringent requirements on employer~ 

as to age of employees, wages, hours of work, or as to safety, health, 

or sanitary regulations, or insurance, or fire protection, or general 

working conditions, than are imposed by this Code. 

8. Each member of the Industry shall be furnished, by the Code 

Authority, with official copies of the provisions of this Code relating 

to hours of labor, rates of pay, and other conditions of employment. 

Such official copies of such provisions shall contain directions for 

filing complaints of violations of such provisions, and shall. be kept 

conspicuously posted at all times by such members of the industry 

in each shop, establishment, or separate unit, to the extent necessary 

to make them freely accessible to all employees. Whenever any 

modifications of, or exemption or exception from this Code permits 

any person to pay lower wages, or work his employees longer hours, 

or establish conditions of employment less favorable to his employees 

than those prescribed by the provisions contained in such official copy 

of the provisions of this Code, the Code Authority, on the request 

of such pe-rson, shall furnish him with certified copies of such modifications, exemption or exception in sufficient number for posting 

along side of such official copies of Code Provisions. No member of 

the industry shall display or furnish any incorrect copies of such 

provisions, directions, modifications, exemptions or exceptions. 

9. No member of the Industry shall give out work to be performed 

in any home or dwelling place. 
373 

ARTICLE VI-AmvnNISTR.d. TION 

1. Organization and Constitution of the Code Authority. 

(a) The Code Authority, hereby established, shall con ist of not 

more than nine ( 9) memb rs. Six ( 6) members shall be elected by 

the Celluloid Button, Buckle and Novelty :Manufacturing A cia- tion. In addition theret , the Ad1ninistrator may appoint not more 

than three (3) members who shall be without vote and together with 

the Administrator hall be given notice of and may sit at all meetings of the Code Authority. 

(b) 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 the membership, and 

(2) submit to the Administrator true copies of its articles of a socia- tion, by-law , 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 effec- tuate the purposes of the Act. 

(c) In order that the Code Authority shall at all times be truly 

repre entative of the indu try and in other regards comply with the 

provisions of the Act, the Administrator may prescribe such hearings 

as he may deem proper; and thereafter if he shall find that the Code 

Authority is not truly representative or does not in other regards 

comply with the provisions of the Act, he may require an appropriate 

modification in the method of selection of the Code Authority. 

(d) Members of the industry shall be entitled to participate in 

and share the benefits of the activities of the Code Authority 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 

detennined by the Code Authority, subject to review by the Administrator, on the basis of volume of business andjor such other factors 

as may be deemed equitable and approved by the Administrator. 

(e) 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 any one for any action or omission to act under the Code~ 

except for his own willful misfeasance or non-feasance. 

2. The Code Authority shall have the following pow rs and duties 

in addition to those elsewhere provided in this Code: 

(a) To adopt by-law and rule and regulations for it proce lure 

and for the administration and nforcement of the Code, in ace nlance with the powers herein aranted, and to submit ame to the 

Administrator for hi approval t gether with true copie of any 

amendments or addition when mad ther to minut : of meeting· 

when held, and uch oth r inf rmation a to its actiYiti a · the 

Administrator may d em nee ary to eff t the purpo f the A -t. 

(b) To obtain from members f the indu try for use f th l 

Authority an 1 of th \.dmini b·ator in th admini tration and 

enforcem nt of the ode, and for the information of th Pr id nt, 

reports ba ·ed on periods of two or four w ks, or multipl s ther of, 
374 

as soon as the necessary readjustment v,;ithin the Industry can be 

made, and to give asssi tance to members of the Indu try in improving methods, and otherwise. All individual reports shall be kept 

confidential as to members of the industry and only general 

summaries thereof may be published. 

(c) To receive complaints of violation of this Code, make investigations thereof and provide hearings thereof and adjust such complaints, and bring to the attention of the Administrator recommendations, and information relative to unadjusted violations, under such 

rules and regulations as may be :prescribed by the Administrator. 

(d) To use such trade associations and other agencies as it deems 

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

herein and to pay such trade associations and agencies the cost 

thereof, 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. 

(e) To coordinate the administration of this Code with such other 

codes, if any, as may be related to the industry, or any subdivision 

thereof, and to delegate to any other administrative authority, with 

the approval of the Administrator, such powers as will promote 

joint and harmonious action upon matters of common interest. 

(£) To provide ways and means for financing the operation of said 

Code Authority and to have the power and duty to determine an 

equitable method of apportioning in the industry the cost of administering this Code. Money raised in any manner shall not exceed in 

amount such reasonable cost. 

(g) To recommend to the Administrator any action or measures 

deemed advisable, including further fair trade practice provisions 

to govern members of the industry in their relations with each other 

or with other industries, measures for industrial planning, and stabilization of employment; and including modifications of this Code 

which shall become effective as part hereof upon approval by the 

Administrator after such notice and hearing as he may specify. (h) To investigate competitive articles imported in the United 

States on such terms and under such conditions as to render ineffective or seriously endanger the maintenance of this Code and to act 

as the agency for making complaints to the proper government 

ngencies on behalf of this industry. 

(i) To cause to be formulated an accounting system and methods 

of co t finding and/ or estimating adaptable for use by all members 

of the industry. After such system and methods have been formulated, full detail concerning them shall be made available to all 

members. Thereafter all members shall determine and/ or estimate 

co. ts in accordance with the principles of such n1.ethods. 

(j) To recommend to the Administrator appropriate provision& 

for the regulation of the disposal of distress merchandise. 

(k) To coordinate the administration of this Code with such other 

coles as may be related to the Indu try, the Code Authority may 

de. ignate representatives for the purpose of meeting with like repres<:>ntatives designated by the Code Authorities of the related Codes 

referred to above. Such representatives shall be duly authorized to 

constitute a committee, which committee shall, as soon as practicable, 
375 

submit to the Admini trat r reports and recommendations with 

r~spect to: 

(1) The e tabli hm nt and m thod of sel tion of a neral Button ~Ianufactur r Coordinating Council. 

(2) The juri iction, a w ll as the administrative pow r and 

authority to be delegat l to sn ·h Coordinating onncil. 

Upon approval by the Administrator, after . ·u h noti and h aring as he shall pre cribe on recommendations of the Coun il, th ode 

Authority hall be subje t to the jurisdiction, rul , regulation , and 

by-laws of the General Button Manufacturer CoordinatinO' ouncil 

in the form and mann r approved by the Admini trator, any xpre. s 

or implied delegation of power or duty in thi Code to th Code 

Authority notwith tanding. 

3. In addition to the information required to be ubmitted to the 

Code Authority a et forth in this Article ther hall be furnished 

to go rernment ao·encie such tati tical informa ion as the Administrator may deem nece ary for the purpo e recit din Section 3 (a) 

of the National Industrial Recovery Act. Nothing in thi Code 

shall relieve any member of the Industry of any exi ting obligations 

to furnish reports to any government agency. 

4. If the Administrator hall determine that any action of a cocle 

authority or any agency thereof may be unfair or unjust or contrary 

to the public intere t, the Administrator may require that such action 

be suspended to afford an opportunity for inv.estigation of the merits 

of such action and further consideration by such code authority or 

agency pending final action which shall not be effective unles the 

Admini trator 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. 

AHTICLE VII-TRADE PRACTICES 

1. No member of the Industry shall use advertising, whether 

printed, radio, eli play or of any other nature, or other repre entation 

which is inaccurate in any material particular, or in any way misrepre ent any commodity, including its use, trade-mark, grade, quality, quantity, origin, size, ub tance, character, nature, finish, mate .. rial content or preparation, or credit terms, value , policie , services, 

or the nature or form of the bu iness conducted. 

2. No m mber of the Indu try shall use advertising or elling 

methods or ere lit term which have the capacity or tendency to deceive or mislead the u tomer or prospective customer. 

3. No member of the Industry shall withhold from or ins rt in 

any quotation or invoice any statement that makes it inac urate in 

any material particular. 

4. No memb r of the In ustry shall brand or mark or pa k any 

commodity in any mann r which tends to l ceive or mi l ad purcha ers with re p ct to the brand, O'ra le, quality quantity oriO'in, 

size, mat rial content or I reparation of su h ommodity. 

5. No member of the Indu ~try shall u e adverti inO' or ther representation which ref rs ina m·ately in any material particular to any 

?mp titor . or th ir nun litie ·, prices, value , credit term poliCl 's or erVIces. 
376 

6. No member of the Industry shall secretly offer or make any 

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

or otherwise for the purpose of influencing a sale, nor shall a member extend to any u tomer any specia;l privilege not extended to 

all customers of the ame Class. 

7. No merchandise shall be exchanged at any time nor shall it 

be con igned, nor in any method of selling to be engaged in which 

shall have the effect of selling on memorandum, or approval. No 

merchandise shall be accepted for return except for defects in 

manufacture, delay in delivery, or errors in shipment. 

8. No member of the Industry shall give, permit to be given, 

or 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 or the principal of such agent without the knowledge of such 

employer or principal. Commercial bribery provisions shall not be 

construed to prohibit a general distribution of articles commonly 

used for advertising, except so far as such articles are actually 

used for commercial bribery as hereinabove defined. 

9. No member of the Industry shall 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 with or 

obstruct the performance of such contractual duties or services. 

10. No member of the Industry shall require that the purchase 

or lease of any commodity be a prerequisite to the pm·chase or lease 

of any other commodity. 

11. No member of the Industry shall give cash discounts in excess 

of the following: 2% ~n days e.o.m., net 30 days; or 3% ten days. 

12. No member of the Industry shall ship goods other than F.O.B. 

point of origin. 

13. No member of the Industry shall sell any commodity at a price 

below his own individual cost. However, any member may meet 

the price of a competing member of the Industry whose cost under 

this provision is lower. Cost shall be determined in accordance 

with Section 2 (i) of Article VI of this Code. Distress merchandise may be sold below cost as hereina-bove provided for until 

such time as the Code Authority in accordance with Article VI, 

Section 2 (j), shall recorrunend to the Administrator appropriate 

provisions for the regulation of the disposal of such merchandise. 

(b) When the Code Authority de~rmines that an emergency exists 

in this Industry and that the cause thereof is destructive pricecutting such as to render ineffective or seriously endanger the maintenance of the provisions of this Code, it may cause to be determined 

the lowest reasonable cost of the products of this Industry, such 

determination to be subject to such notice and hearing as the Administrator may require. The Administrator may approve, disapprove, or modify the determination. Thereafter, during the period 

of the emergency, it shall be an unfair trade practice for any member of the Industry to sell or offer to sell any product of the Industry 

for which the lowest reasonable cost has been determined at such 

prices or upon such tenns or conditions of sale that the buyer will 

pay less therefor tha~ tl1e lowest reasonable cost of such products. 

When it appears that conditions have changed, the Code Authority, 
377 

upon its own initiative or upon the request of any interested party, 

shall caus the d termination to be reviewed. 

ARTICLE VIII-GENERAL 

Any employer. who at any time or times, hall manufacture any 

article or articles within the provi ions of this Code, hall be bound 

by all the provi' ions of this Code as to all employees engaged in 

whole or in part, in such manufacture. 

In case any employee hall be engao·ed partly in such manufacture 

and partly in the manufacture of goods of another character, this 

Code hall apply to uch portion of such employee's time as is 

applied to the manufacture of uch article coYered by this Code. 

ARTICLE IX-MODIFICATION 

1. This Code and all the provi ions thereof are expre. sly made 

subject to the right of the President, in accordance with the provisions of sub ection (b) of Section 10 of the National Industrial 

Recovery Act, from time to time to cancel or modify any order, 

approval, license, rule or r gulation issued under Title I of said Act 

and pecifically, but without limitation, to the right of the President 

to cancel or modify his approYal of this Code or any conditions 

imposed by him upon his approval thereof. 

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

be modified on the basis of experience or changes in circumstances, 

such modifications to be ba ed upon application to the Aclmini trator 

and such notice and hearing as he shall specify, and to become effective on approval of the President. 

ARTICLE X-MONOPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or di criminate again t small enterprises. 

ARTIOLE XI-PRICE INCREASES 

vVhereas the polic)_' of the Act to incre~se :eal J?Urchasing power 

will be made more d1fficult of consummation If pnces of goods and 

services in rease as rapidly as wages, it is recognized that price increases except such as may be required to meet individual cost should 

be delayed. but when made such increases should, so far as possible, 

be limited 'to actual additional increases in the seller's costs. 

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective on the second l\!Ionday after its 

approval. 

Approved Code No. 400. 

Registry No. 1009-05. 

0 

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UNIVERSITY OF FLORIDA 

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