Approved Code No. 148 Registry No. 611-02 

\ 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

PYROTECHNIC 

MANUFACTURING INDUSTRY 

AS APPROVED ON DECEMBER 7, 1933 

BY 

PRESIDENT ROOSEVELT . 

0 = --·- ,. I • ---• 

U.~. DEP08tTORY 

OUR PART 

l 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHING TON : 1933 

For sale by the Superintendent •or Documents, Washiniton, D.C. Price 5 cents 

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 

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Approved Code No. 148 

CODE OF FAIR COMPETITION 

FOR THE 

PYROTECHNIC MANUFACTURING INDUSTRY 

As Approved on ·December 7, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

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 my approval of a Code 

of Fair Competition for the Pyrotechnic Manufacturing Industry, 

and hearings having been held thereon and the Administrator having 

rendered his report containing an analysis of the said code of fair 

competition together with his recommendations and findings with 

respect thereto, and the Administrator having found that the said 

code of fair competition complies in all respects with the pertinent 

provisions ·of title I of said act and that the requirements of clauses 

(1) and (2) of subsection (a) of section 3 of the said act have been 

met: 

NOW THEREFORE, I, Franklin D. Roosevelt, President of the 

United States pursuant to the authority vested in me by title I of 

the National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, do adopt and approve the report, recommendations, and 

findings of the Administrator and do order that the said code of fair 

competition be and is hereby approved. 

Approval recommended: 

Hum-IS. JOHNSON, 

Administrator. 

THE WHITE HousE, 

December 7, 1933. 

FRANKLIN D. ROOSEVELT. 

(591) 

25687°-244-148-33 
NOVEMBER 27, 1933. 

The PRESIDENT, 

The lVhite House. 

Srn: This is a report on the Code o:f Fair Competition for the 

Pyrotechnic Manufacturing Industry in the United States, a hearing 

on which was conducted in Washington on the thirty-first of October 1933, in accordance with the provisions of the National Industrial Recovery Act. 

PROVISIONS OF THE CODE AS TO WAGES AND HOURS 

This Code provides for a maximum workweek of forty ( 40) hours 

or eis-ht (8) hours in any twenty-four (24) hour period in the Commercial Fireworks Division, except that :factory employees may be 

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

for seasonal periods not exceeding two months in the first six-month 

period and one month in the second six-month period of any calendar 

year. · 

In the Display Fireworks Division a maximum workweek of forty 

(40) hours or eight {8) hours in any twenty-four (24) hour period 

is provided, except that for the period from April 15 to September 

15 factory employees may be permitted to work a maximum of fortyeight ( 48) hours per week. 

In the Fusee Division a maximum workweek of thirty-five (35) 

hours or seven (7) hours in any twenty-four (24) hour period is provided. 

Exceptions to these limitations on working hours are provided for 

executives, supervisory staffs, and clerical workers receivip.g at least 

$35.00 per week. Further exceptions are provided for traveling sales 

persons, watchmen, and persons engaged on emergency maintenance 

and repair work, clerical workers receiving less than $35.00 per week, 

janitors and boiler-house employees, and truckmen. 

In all divisions overtime shall be paid for at the rate of time and 

one third. 

This Code provides for a minimum wage of thirty-seven and one 

half (371⁄2) cents per hour for males and thirty-two and one half 

( 321⁄2) cents per hour for females in the Commercial Fireworks 

Division, forty (40) cents per hour for males and thirty-five (35) 

cents per hour for females in the Display Fireworks Division, and 

forty ( 40) cents per hour in the Fusee Division. This establishes 

minimum rates of pay regardless of whether an employee is com- pensated on a time-rate, piecework, or other basis. 

Female employees performing substantially the same duties as 

male employees shall receive at least the minimum wage prescribed 

for male employees. 

No person under eighteen (18) Years of age shall be employed in 

the industry. 

(592) 
593 

With permission of State Authority, persons physically or mentally handicapped may be employed below the minimum wage 

provided. 

~ased upon changes _in mi_nimum pay necessitated by the foregoing paragraphs of this Article each employer shall in each estab: 

lishment make fair and equitable readjustment of all pay schedules. 

ECONOMIC EFFECT OF THE CODE 

The attached Code covers the manufacturing, assembling and display of all kinds of fireworks and the manufacture of fusees, railway 

torpedoes, and flares. The industry has developed from small home 

manufacturing units into large concerns with a considerable amount 

of invested capital and employs at the present time approximately 

1,500 wage earners indicating a decline, based on the 1929 level of 

employment, of about 500 persons. The industry is divided into 

three Divisions: Commercial Fireworks, which includes the manufacture of all kinds of fireworks such as roman candles, pin wheels, 

sparklers, and flares; Display Fireworks Division, which includes 

the business of manufacturing, assembling, and displaying of fireworks at exhibitions, fairs, and pageants, etc.; and the Fusee Division, which includes the manufacture of pyrotechnic signals2 commonly known as fusees, and railway torpedoes used as warning or 

distress signals by various transportation units, particularly for the 

protection of life and property. The industry, with the exception of the Fusee Division, is highly 

seasonal. The product of the Commercial Fireworks Division is 

intended for use on two days, namely, the Fourth of July and 

Christmas. The production peak for the Commercial Fireworks 

Division comes in May and June in preparation for the Fourth of 

July, followed by a lull until the fall revival in preparation for the 

Christmas business. 

In the Display Fireworks Division the production peak comes 

during the summer and early fall months, when fireworks are displayed at various exhibitions, fairs, and pageants. Production in 

the Fusee Division depends entirely upon the prosperity of our 

transportation systems and is governed by the economic condition 

of the country. 

The Pyrotechnic Industry reached its peak in 1929, at which time 

the volume of production was valued at approximately $6,584,000. 

Since that time there has been a steady decline. in the number of 

establishments and in production. Possibly the most serious causes 

of this decline have been restrictive municipal legislation and destructive competitive practices within the industry. 

Imports of fireworks over the period from 1929 to 1931 amounted 

to approximately 11 or 12 percent of the domestic production. These 

importations have affected the. industry seriously. Unfair practices 

in the distribution of imported fireworks also have contributed to a 

certain extent to the demoralization of the industry. 

The Code contains a number of unfair trade practices which are 

to be prohibited in order to eliminate destructive. competition now 

prevalent. These provisions should enable the manufacturers to 

proceed on a sound, competitive basis. 
594 

In order to maintain the proper differential between the three 

Divisions separate Wage and Hour provisions are established for 

each. The Code will establish a work week of 35 hours in the Fusee 

Division. In the Commercial Fireworks Division the Code will reduce the hours from 50 a week to an effective 42-hour week, as approximately 50 percent in the past have operated in excess of 48 

hours, which is the maximum permitted for the seasonal peak, and 70 

percent in the past have worked in excess of the 40 hours maximum 

established for other periods. The Display Fireworks Division will 

be reduced from a 60- to an effective 44-hour week, as 50 percent in 

the past have worked over 48 hours, which is the maximum permitted 

for the seasonal peak, and 80 percent in the past have worked in 

excess of the 40 hours maximum established for the other period. In 

the Fusee Division approximately 30 percent of the employees have 

worked in excess of the 35 hours maximum established for this Division. The reduction of hours throughout the country should 1nean 

an increase of employment to approximately the 1929 level with an 

additional 200 employees during the seasonal peaks in the Commercial Fireworks and Display Divisions. Further increases in employment should be noted in the Fusee Division with increasing operations of our transportation system. This means a definite reversal 

of the. descending trend of employment since 1929. 

The rates of wages established in the Commercial Fireworks 

Division will increase the pay of 85 percent of these employees, and 

increase pay rolls 42 percent. In the Display Fireworks Division 

the minimum rates of pay established will benefit 65 percent of their 

employees and will result in an increase in pay rolls of from 30 to 35 

percent. Approximately 53 percent of the employees in the Fusee 

Division will receive an increase in rates because of the minimum 

established for this Di vision with an estimated 30 percent increase 

in the pay rolls for this Division.· 

It is evident therefore that not only will the Code increase employme:at but when coupled with the resultant increase in purchasing 

power and the elimination of destructive competitive practices will 

result in the stabilization of the industry and an increase in purchasing power. 

It is believed that for the ultimate good of the industr:y- that the 

control prescribed and permitted in the Code is essential. It is 

highly important, however, that the government representation in 

the Administration and operation of the provisions of this Code 

exercise carefully its functions. 

FINDINGS 

The Administrator finds that (a) The Code as recommended complies in all respects with the pertinent provisions of Title I of the . 

Act, including, without limitation, subsection (a) of Section 7 and 

subsection (b) of Section 10 thereof; and that 

(b) The applicant groups impose no inequitable restrictions on 

admission to membership therein and are truly representative of the 

Pyrotechnic Industry; and that 
595 

( c) The Code as recommended is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate 

to discriminate against them, and will tend to effectuate the policy of 

Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be immediately 

adopted. · 

Respectfully. 

l-luG:a S. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

PYROTECHNIC MANUFACTURING INDUSTRY 

ARTICLE I - PURPOSE 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are submitted as a Code of 

Fair Competition for the Pyrotechnic Manufacturing Industry, and 

upon approval by the President, shall be the standard of fair competition for such industry and shall be binding upon ~very member 

thereof. . 

ARTICLE II- DEFINITIONS 

The term " Pyrotechnic I ndustry ", as used herein, includes the 

business of manufacturing and the assembly and display of all kinds 

of fireworks, and the manufacture of fusees, railway torpedos, and 

flares. 

The term "Fireworks" includes all articles producing audible 

or visible display, and includes Roman candles, pin wheels, Catherine 

wheels, skyrockets, sparklers, bombs, caps, jerbs and shells, flaresl 

bengal and colored lights of all kinds, salutes and firecrackers ot 

all kinds, smoke candles, smoke lights, signal lights~ and all kinds 

of novelty articles containing chemicals to be exploded. or ignited. 

The term "Commercial Fireworks Division" includes the manufacture ,of fireworks. 

The term "Displa1, Fireworks Division" includes the displaying 

of fireworks at exhibitions, the manufacture or assembly of fireworks solely for the purpose of display, and presenting fireworks 

spectacles and pageants. 

The term "Fusee Division" means the manufacture of frictioncap igniting, time-burning pyrotechnic signals, commonly known as 

fusees, used as warning or distress signals, particularly for the protection of life and property by various transportation units, and of 

railway torpedos. 

The term "employee" a_s used herein 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. 

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

any such employee is compensated or employed. 

The term "member of the industry" includes anyone engaged in 

the industry as above defined, either as an employer or on his own 

behalf. 

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

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

(596) 
597 

the National Industrial ReC'!wery Act, and the Administrator of 

said Act. 

For the purpose of this Code the term "jobber" shall mean a 

whole ale dealer; the term ' stockjobber" shall mean a jobber who 

maintains a permanent warehouse, stocks fireworks, employs a sales 

force, and ships merchandise to his customers from such stock; the 

term ' drop-shipm.ent jobber" shall mean a jobber who does not 

stock fireworks but sells to a retailer, the goods being shipped direct · 

to such retailer by a manufacturer, stockjobber, or branch. 

The term " branch " shall ·mean a separate establishment of a 

member of the industry located in a different place :from his main 

office, where a separate sales force is maintained and a stock of 

merchandise for sales purposes is carried. 

ARTICLE III-HouRs OF LAnoR 

SECTION 1. Provi'sions Applicable to tlie Oommerm'al Ffreworks 

Division only.-Except as hereinafter and in Section 4 of this 

Article provided, no employee shall be permitted to work in excess 

of forty hours in any one week or eight hours in any twenty-:f ourhour period, except that factory employ~es may be permitted to 

work a maximum of forty-eight hours per week for seasonal periods 

not exceeding two months in the first six-month period and one 

month in the second six-month period of any calendar year. 

SEc. 2. PTovisions Applicable to the Display Ffreworks Divisi'on 

on7y.-Except as hereinafter and in Section 4 of this Article provided, no employee shall be permitted to work in excess of forty 

hours in any one week or eight hours in any twenty-four-hour period, 

except that for the period from April 15 to September 15 factory 

employees may be permitted to work a maximum of forty-eight 

hours a week and employees receiving $35 a week or more engaged 

in the actual work of attending to or supervising a display of fireworks at an exhibition spectacle or pageant may be permitted to 

work until a display upon which they are engaged is concluded. 

SEc. 3. Provisi'ons Applicable to the Fusee Division only.-Except 

as in Section 4 of this Article provided, no employee shall be permitted to work in excess of thirty-five hours in any one week or 

seven hours in any twenty-four hour period. 

SEc. 4. Provisions Appl icable to All Divisions of the Industry.-

( a) Executives, supervisory staffs, and clerical workers receiving 

$35.00 per week or more, traveling sales persons, watchmen, and 

persons engaged in emergency, maintenance, and repair work, shall 

be exempt from the provisions of Sections 1, 2, and 3 of this Article, 

provided, however, that emergency, maintenance, and repair work 

in excess of the maximum hours hereinaboYe provided shall be compensated by overtime payment at the rate of not les · than time and 

one third, and: provided further, that emergency employment by 

reason of fires and/or explosions shall be compensated by payment 

at not less than the regular rate of pay for the employees so engaged. 

(b) Clerical workers receiving less than $35.00 per week may be 

permitted to work an average of 40 hours per week during any threo 

months' period, but not more than 48 hours in any one week. 

( c) Janitors and boiler house employees may be permitted to work 

a maximum of forty-eight hours per week. 

25687°--244-148--33-2 
598 

( d) Truckmen may be permitted to work a maxin1um of fortyfour hours per week, with a ten percent tolerance during the seasonal 

periods provided in Sections 1 and 2 of this Article. 

SEc. 5. For the purpose of exceptions contained in Sections 1 and 

2 of this Article, each member of the industry, who is a member -0£ 

both the Commercial Fireworks Division and Display Fireworks 

Division, shall classify his plant or plants, by notice in writing to 

the Code Authority Board, as coming within either the Commercial 

Fireworks Division or the Display Fireworks Division. 

SEc. 6. In the Commercial Fireworks Division time in excess of 

eight hours a day and forty hours per week £or employees whose 

hours are limited in Section 1 of this Article, shall be paid for at time 

and one third. 

ARTICLE IV-"'¥ AGES 

SECTION 1. 0 011-wnercial Fireworks Division.-N o 1nale employee 

shall be paid at less than the rate of 371⁄2 cents per hour. No female 

employee shall be paid less than the rate of 321⁄2 cents per hour. 

SEC. 2. Display Fireworks Division.-No male employee shall be 

paid at less than the rate of 40 cents per hour. No female employee 

shall be paid at less than the rate of 35 cents per hour. 

SEC. 3. Fusee Division.-No employee shall be paid at less than the 

rate of 40 cents per hour. 

SEC. 4. This Article establishes minimum rates of pay regardless 

of whether an employee is compensated on a time-rate, piecework, or 

other basis. 

SEc. 5. Female employees performing substantially the same duties 

as male employees shall receive at least the minimum wage herein 

prescribed for male employees. 

SEc. 6. Employers shall adjust wage schedules in equitabie relation 

to the minimum hourly rates provided in this Article, so far as such 

adjustments have not been made subsequent to June 16, 1933. Each 

member of the Industry shall promptly report all such adjustments 

to the Code Authority Board. 

AnTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. No person under eighteen years of age shall be employed 

in the industry. 

SEc. 2. Employees shall have the right to organize and baro-ain 

collectively through representatives of their own choosing, and ~1all 

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. 

SEc. 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. 

SEc. 1~. Employers shall comply with the maximum hours of labor, 

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

or prescribed by the President. 
599 

SEc. 5. Within each State this Code shall not supersede any laws 

of such State imposing more stringent requirements on employers 

regulating the age of employees, wages, hours of work, or health, fire, 

or general working conditions than under this Code. 

SEc. 6. There shall be no evasion of this Code by reclassification of 

the functions of workers. A worker hall not be included in any of 

the exceptions enmnerated in Article III hereof unless the identical 

functions which he performs -n:-ere identically classified on June 16, 

1933. 

SEC. 7. No employer shall knowingly engage any employee for any 

time for which, when totalled with that already performed for 

another employer or employers, exceeds the m:iximum permitted 

herein. 

SEc. 8. An employer shall make payment of wages due in lawful 

currency or negotiable check payable on demand. Wages shall be 

paid at the end of the regular pay-roll period. These wages shall be 

exempt from any payments for pen ions, insurance, or sick benefits 

other than those voluntarily paid by the wage earner. 

SEc. 9. A person who e earning C< pacity is limited because of age 

or physical or mental handicap 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 his employment at 

such wages and for such hours as shall be stated in this certificate, 

provided that the number of such employees shall not exceed five 

percent ( 5%) of the total nmnber of employees on the l?ay roll. 

Each employer shall file with the Code Authority Board a h t of all 

such persons employed by him. 

SEo. 10. Each employer shall post in conspicuous places acce sible 

to employees copies of Articles III, IV, and V of this Code. 

ARTICLE Vl-_,._~Dl\IINISTRA TION 

SECTION 1. 0 ode Authority B oard.-To further effectuate the 

policies of the Act, a Code Authority shall be established and known 

as the Code Authority Board of the Pyrotechnic Manufacturing 

Industry. The industry shall be classified into three divisions known 

as (1) Commercial Fireworks Divi ion, (2) Display Fireworks 

Division, and (3) Fusee Division. 

Additional divisions may be organized, or existing divisions consolidated, upon recommendation of the Planning and Fair Practice 

Agencies of the divisions affected, and the Code Authority Board, 

with the approval of the Administrator. 

SEc. 2. Organization and Oonstit'Ution of Oocle .A.i1,thority Board.- The Code Authority Board shall be composed of members of the 

industry. Three members shall be elected by each respective division 

according to the following rules and subject to the approYal of the 

President. 

1. Each member of the industry shall have one Yote in each division of which he is a member. 

2. The vote of a majority in number of members of the division 

representing in the aggregate n10re than one half of the gross 

saies of such division in the preyious calendar year shall be necessary 

to elect. 
600 

Th~ 9?de 1 uthori_ty Board shall act ~s a coordinating agency for 

the chvis10ns of the mclustry. The President may appoint not more 

than three members, without vote, to the Code Authority Board. 

The Code Authority Board so organized is hereby constituted the 

agency for cooperating with the Administration or the Administrator as an administrative, planning, and fair-practice agency for the 

Pyrotechnic Manufacturing Industry. Such agency may from time 

t o time present to the Administrator recommendations based on conditions in the industry as they may develop, which will tend to 

effectuate the operation of the provisions of this Code and the policy 

of the Act. 

SEC. 3. Divisional Planning and Fair Practice Agencies.-Each 

division of the Pyrotechnic Manufacturin.0 · Industry shall, by the 

method above prescribed for election of member of the Code Authority Board, elect its own separate and distinct divisional Planning 

and Fair Practice Agency. Each such divisional Planning and Fair 

Practice Agency shall present in writing to the Code Authority 

Board, and each member thereof individually, its recommendations. 

If the Code Authority Board fails to disapprove thereof within 

twenty days after the same shall have been presented, said recommendations shall be deemed approved by it. If the Code Authority 

Board disapproves thereof, then and in that event the divisional 

Planning and Fair Practice Agency shall be entitled to pres0 nt its 

recommendations direct to the Administrator for his approval. Recommendations made under this Article shall not become effective 

until approved by the Administrator. 

Each division may carry out the approYed recommendations of 

its Planning and F air Practice Agency, subj ect to supervision by the 

Code Authority Board, all to the end that each division ma.y be 

self-governing in all problem'"· , including trade terms and trade 

practices, relating exclusively to itself. 

In order that the Code Authority Board shall at all times be truly 

repre. entative of the industry and in other respects comply with the 

provision of the Act, the Administrator may provide such hearings 

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

Authority Board is not truly representative or does not in other 

respects comply with the provi ions of the Act, may require an 

appropriate modification in the method of selection thereof. 

SEc. 4. Poioers and Ditties of the Code Authority Board.-The 

Code Authority Board shall ha·ve the followinp- duties and powers to 

the extent permitt ed by the Act, ·ub ject to t he right of the AdminiEtrator on review to disapproYe or modify any action t aken by it: 

(a ) The Code Authority Board c::hall aclmini ter the Code and 

shall maintain all activities pertinent thereto, such as obtaining :from 

employers reports reque. ted by the President or his authorized 

representative in respect to wages, hours of labor, conditions of employment, and number of employees. In addition to the information required t o be submitted to the Code Authority Board, there 

shall be furnishe l to government agencies such statistical information 

as the Admini trator may deem necessary for the purposes recited 

in Section 3 (a) of the Act. 

(b) :Members of the indu try shall be entitled to participate in 

and hare the benefit of the activities of the Code Anthoritv Board 

and to participate in the selection of the members thereof by assent-
601 

ing to and complying with the requirements of this Code and sustaining their reasonable share of the expenses of the administration. 

The reasonable share of the expenses of the administration shall be 

determined by the Code Authority Board, subject to review by the 

Administrator, on the basis of volume of busine s and/or such other 

factors as may be deemed equitable to be taken into consideration. 

( c) The Code Authority Board shall investigate and report to the 

Administrator as to the importation of competitive articles into the 

United States of America, in substantial quantities or increasing 

ratio to domestic production, or under such terms or conditions as to 

render ineffective or seriously endanger the maintenance and enforcement of this Code, and shall make complaint on behalf of the 

Pyrotechnic Industry, under the provisions of Section 3 ( e) of the 

Act with respect thereto. 

SEC. 5. Trade Association.-Each trade or industrial association 

directly or indirectly participating in the selection or activities of 

the Code Authority Board shall ( 1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true 

copies of its articles of association, bylaws, regulations, and any 

amendments when made thereto, together with such other information as to membership, organization, and activities as the Administrator may dee1n necessary to effectuate the purposes of the Act. 

ARTICLE VII-TRADE PRACTICES 

SECTION 1. Provisions Applicable to all Divisions of the 

Industry.-

A. SALES BELOW CosT.-Under the direction of the divisional 

Planning and Fair Practice Agencies studies shall be made in an 

effort to determine fair and uniform cost-finding procedures for 

members of the respective divisions of the industry. If and when 

such cost-finding systems are recommended by any Planning and 

Fair Practice Agency and are approved by the President or his 

authorized representative, sales below cost, so determined, shall be 

unfair competition. 

B. It shall be unfair competition for any manufacturer engaged 

in the industry-

(1) To give rebates, refunds, commissions, credits, or unearned 

discounts, whether in the form of money or otherwise, or to extend 

to certain purchasers special services or privileges not extended to 

all purchasers on like terms and conditions; give guarantees against 

decline in prices or protection against price advances, except in the 

Fusee Division; 

(2) To indulge in commercial bribery in any form, such as the 

giving of gratuities, commissions, or rewards to purchasing agents 

or other employees of customers or by lavish entertainment of such 

employees; 

(3) To misrepresent merchandise with respect to size, substance, 

weight, or quality, or to use false, deceptive, untrue, or misleading 

statements in advertising, printing, or otherwise; 

(4) To maliciously entice away the employees of a competitor for 

the purpose of hampering, injuring, or embarrassing a competitor in 

his business; but nothing in this paragraph shall prevent any em-
602 

ployec from offering his services to another employer, nor prevent any 

employer from employing the employee of another employer. 

(5) To defame a competitor by falsely imputing to him or it dishonorable conduct, inability to perform contracts, questionable credit 

standing, or by any other misrepresentation calculated to mislead or 

deceive customers. -(6) To disparage falsely the quantity, grade, quality, or substance of a competitor's products by any statement calculated to mislead or deceive customers. 

C. PIRACY OF STYLES .AND DESIGNs.-Copying of lines, items, or 

effects originated by a competitor during the calendar year in which 

they were originated, shall be unfair competition. Any member of 

the industry claiming to have originated a design, style, pattern, or 

effect, may register the same by furnishing plans and/ or models 

thereof to the Code Authority Board together with an affidavit setting forth his exclusive claim thereto and he shall have the exclusive 

right to the use thereof for two years from the date of such registration. The fact that such registration has been made shall be prima 

facie evjdence that the use of such designs, style, pattern, or effect 

by a competitor is a violation of this Code. 

D. MATERIALs.-No domestic materials shall be used in the manufacture of pyrotechnics unless the same have been manufactured under 

and in accordance with the provisions of a code of fair competition 

duly approved by the President, or the PresidBnt's Reemployment 

Agreement. 

SEc. 2. Provisions Applicable to the Commercial Fireworks 

Division onlyA. TERMS OF S.ALE.-Full details of all terms of sale, including date 

of delivery and payment, quantity, price, freight, terms, etc., shall be 

set forth in a written order and shall be strictly adhered to. 

B. TR.ADE DrscouNTs.-The following trade discounts shall prevail 

throughout the division: 

1. Regular trade discount shall be fifty percent ( 50%) of list price, 

f.o.b. Main Factory. 

2. On all drop shipment orders from the factory there shall be an 

additional service charge of not less than ten percent (10%) of the 

net amount of the invoice. 

3. Subject to the approval of the Administrator, if and when the 

jobbers dealing with members of this division shall, through a duly 

approved code of fair competition or otherwise, agree to sell on substantially similar terms: 

a. Stock orders to jobbers from branches shall be at price, f.o.b. 

Branch, not less than factory price plus actual transportation charges 

from main factory, plus ten percent (10%). 

b. On all drop shipment orders from branches there shall be an 

additional service charge of not less than five percent ( 5%) of the 

net amount of the in voice. 

c. No manufacturer shall allow any discount on quantity sales to 

retailers in excess of twenty-five percent (25%) of list price, f.o.b. shipping point. 

4. No manufacturer shall ship in carload or by truck from factory 

to any jobber merchandise especially packed or marked for distribution to such jobbers' retail customers; provided, however, that 
603 

nothing in this section shall be so construed as to prohibit any manufacturer :from including, in any carload, shipments to more than one 

jobber. 

C. TERMS OF PAYMENT.-Goods sold for the Fourth of July trade 

shall be billed for payment July 10th net cash. Goods sold for the 

Christmas trade shall be billed for payment January 10th net cash. 

If cash payment is made before the due date as herein provided, discount at the rate of one percent ( 1 % ) per month shall be allowed 

for such cash prepayment up to a maximum allowance of six percent 

( 6%). On all goods not sold for the usual Fourth of July and 

Christmas trade the terms of payment shall be thirty days net cash 

with an allowance of two percent (2 %) for payment within ten days 

o:f date of shipment. ' 

D. CoNSIGNMENTS AND RETURNED MERCHANDISE.-No goods shall 

be sold upon consignment and no goods shall be sold with any understanding, open or secret, that payment therefore shall be deferred 

beyond the time of the regular terms of payment. Merchandise 

delivered by the manufacturer within the time agreed upon and in 

compliance with the specifications of an order shall not be accepted in 

return by the manufacturer except with the approval and consent of 

the divisional Planning and Fair Practice Agency, subject to r eview 

by the Administrator. 

E. BLANKET ORDERs.-N o requirement contracts or blanket orders, 

that is, orders for a gross amount without specifying the kind and 

quantity of goods to be delivered, shall be accepted by any member of 

this division. 

F. STAPLE Goons AND PmcEs.-The divisional Planning and Fair 

Practice Agency is empowered to designate certain items that are 

generally manufactured by the division as staple goods. On items 

so designated it shall, subject to the approval of the Administrator, 

prescribe limits or size, weight, and other specifications necessary 

for a reasonable standardization. At the beginning of each season, 

not later than August 1st for the Christmas· trade and November 1st 

for the Fourth of July trade, each manufacturer shall file in writing 

with the Code Authority Board a full and complete schedule of net 

selling prices, such schedule to be accompanied by a full description 

of the items as to weight, size, and other details. No net selling 

prices or specifications applying to such items may be changed during the season to figures on any item lower than the lowest net selling price on file with the Code Authority Board without giving ten 

days' notice in writin~ to the divisional Planning and Fair Practice 

Agency. Upon the nling of such reduced prices, the divisional 

Planning and Fair Practice. Agency shall immediately notify all 

members of the division o:f such reduction. Nothing herein contained shall permit the sale of any item in violation of the provisions 

of subdivision A of Section 1 of this Article. 

G. DELIVERED PRICEs.-Nothing herein contained shall prevent any 

manufacturer from selling similar articles at the same delivered 

price as any other manufacturer, unless such sale shall violate subdivision A of Section 1 of this Article. 

H. TRANSACTIONS BETWEEN MEMBERS OF THE DrvrsroN .-The provisions of this Article as to terms of sale, terms of payment, freight, 
604 

freight terms, and trade discounts shall not apply to transactions 

between members of this division, nor to sales of caps to manufacturers of pistols. 

I. DISTRESS MERCHANDISE.-Inventories which must be converted 

into cash to meet emergencies and abandoned lines may be disposed 

of in such manner and on such terms and conditions as may bs 

prescribed by the divisional Planning and Fair Practicr Agency, 

subject to review by the Administrator. 

ARTICLE VIII-STABILIZATION 

SECTION 1. Oomniercial, and Displa'!I Fireworks Divisions.-In 

view of the surplus of production facilities in these divisions, before 

any additions to or expansions of present manufacturing plants or 

equipment shall be made or any new manufacturing plant shall be 

constructed, application shall be made to the Administrator, who 

shall take such action after notice and hearing as may seem necessary to effectuate the policy of the Act. 

SEc. 2. Fusee Division.-Until, in the opinion of the Administrator, the demand for the products of the industry from the railroads 

of the United States cannot adequately be met by the use of existing 

production facilities, no additions to, or expansion of, present manufacturing plant or equipment shall be made and no new manufacturing plant shall be constructed unless the Administrator, after notice 

and hearing, shall find that public necessity and convenience require 

same. 

ARTICLE IX-MODIFICATION 

SECTION 1. This Code and all the provisions thereof are expressly 

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

provisions of subsection (b) of Section 10 of the National Industrial 

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

approval, license, rule, or regulation issued under Title 1 of said 

Act, and specifically, but without limitation, to the right of the 

President to cancel or modify his approval of this Code or any 

conditions imposed by him upon his approval thereof. 

SEc. 2. This Code, except as to provisions required by the Act, 

may be modified on the basis of experience or changes of circumstances, such modification to be based upon application to the Administrator and such notice and hearing as he shall specify, and to 

become effective on approval of the President. 

ARTICLE X-MONOPOLIES, ETC. 

No provision of this Code shall be so aJ?plied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or descriminate against small enterprises. 

ARTICLE XI-PRICE INCREASES 

Whereas the policy of the Act to increase real purchasing power 

will be made impossible of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price in-
605 

creases should be delayed and that, when made, the same should, 

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

seller's cost. 

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective on the first Monday after its 

approval by the President. 

Approved Code No. 148. 

Registry No. 611-02. 

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