Approved Code No. 438 Registry No. 1001-04 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ABRASIVE GRAIN INDUSTRY 

' 

AS APPROVED ON MAY 21, 1934 

WE DO OUR PART 

7 

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UNITED STATES 

GOY.ERNMENT PRINTING OFFICE 

WASHINGTON 1 193' 

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Approved Code No. 438 

ERRATA SHEET 

CODE OF FAIR COMPETITION 

FOR THE 

ABRASIVE GRAIN INDUSTRY 

As Approved on May 21, 1934 

Regitttr:r No. 1001--04 

Page 312, Article VII, Section 8 {b) econd line "filed" should be 

" fi Iled." 

77095--829-162-34 

Approved Code No. 438 Registry No. 1001-04 

' ERRATA SHEET 

CODE OF F IR COMPETITION 

FOR THE 

ABRASIVE GRAIN L DUSTRY 

As Approved on May 21, 1934 

Page 312, Article VII, Section 8 (b) second line "filed" hould be 

" filled." 

77095°-829-162-34 
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Approved Code No. 438 

CODE OF FAIR COMPETITION 

FOR THE 

ABRASIVE GRAIN INDUSTRY 

As Approved on May 21, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION FOR THE ABRASIVE 

GRAIN INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

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

Fair Competition :for the Abrasive Grain Industry, and hearings 

having been duly held thereon and the annexed report on said Code-1 

containing findmgs with respect thereto, having been made and 

directed to the President : 

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

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

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

1933, and otherwise; do hereby incorporate by reference said annexed 

report and · do find that said Code complies in all respects with the 

pertinent provisions and will promote the policy and purposes of 

said Title of said Act; and do hereby order that said Code of Fair 

Competition be and is hereby approved. 

HUGH s. JOHNSON' 

Administrator for Industrial R ecovery. 

Approval recommended: 

A. R. GLANCY, 

Division Admfinistrator. 

WASHINGTON, D;C., 

lJl ay !31, 1934. 

60977°-544--123--84 (303) 
REPORTTOTHEPREfilDENT 

The PRESIDENT, 

The White House. 

Sm: This is a report on the Code of Fair Competition for the 

.Abrasive Grain Industry 0£ the United States, as revised after a 

Public Hearing conducted in Washington on the 21st day 0£ March 

1934, in accordance with the provisions 0£ the National Industrial 

Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Factory employees are limited to eight (8) hours per day; clerical 

and office employees may work nine (9) hours in any one day but 

a normal work day is eight (8) hours. All employees are limited 

to forty ( 40) hours per week of six ( 6) days, except on emergency 

maintenance and repair work. Dunno- peak periods overtime is 

permitted to the extent of thirty-two (32) hours in any three months' 

period. Shipping crews and truck drivers are permitted ten per 

cent (10%) hourly tolerance. Certain managerial employees receiving thirty-five ($35.00) dollars a week or more, and outside salesmen are exempt from the hourly provisions. 

A minimum wage 0£ not less than forty (40) cents per hour is 

established. Female employees will receive the same rate of pay 

as male employees £or substantially the same class 0£ work. Clerical 

employees will be paid not less than fifteen ($15.00) dollars per 

week, and office boys, girls and messengers will be paid not less 

than twelve ($12.00) dollars per week. 

ECONOMIC EFFECT OF CODE 

The forty ( 40) hour maximum week adopted by the President's 

Reem:()loyment Agreement provided by the Code, and the new business since 1933 has increased employment fifty-eight ( 58) per cent. 

The average hours worked in 1929 were 52.9 which average dropped 

to a low of 38.7 hours in 1933. Employment in June, 1933, was 

only 52.3 per cent of the 1929 average but by October employment 

increased to 82 per cent. 

Wages per hour averaged 62.1 cents in 1929 and showed an increase 

to 65.l cents in 1933. The Industry has an invested capital 0£ over 

$10:000,000.00 and shows average yearly sales o:f approximately 

$5,500,000.00 £or the past five ( 5) years. 

FINDINGS 

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

having found a.s herein set :forth and on the basis o:f all the proceedings in this matter; 

(304) 
305 

I find that: 

(a) Said Code is well designed to promote the policies and purposes o-f Title I of the National Industrial Recovery A.ct, including 

removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will/rovide for· the general welfare by promoting the organization o 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 o-f industries, 

by avoiding undue restriction of production ( except as ma.y be temporarily required), by increasing the consumption of industrial and 

agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

( c) The Code as approved complies in all respects with the pertinent provisions of said Title of said A.ct, including without limitation Subsection (a) of Section 3, Subsection (a) qf Section 7, and 

Subsection (b) of Section .10 thereof; and that applicant group is an 

industrial association truly representative of the aforesaid Industry; 

and that said association imposes no inequitable restrictions on 

admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

( e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

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

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

Code. 

For these re.asons, this Code has been approved by me. 

Respectfully, 

MA~ 21, 1934. 

HUGH s. JOHNSON, 

Administratm-. 
CODE OF FAIR COMPETITION FOR THE ABRASIVE 

GRAIN INDUSTRY 

ARTICLE I-PURPOSES 

To e:ff ectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions a.re established as a Code 0£ 

Fair Competition for the Abrasive Grain Industry, and shall be the 

standard of fair competition for such Industry and shall be binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "Abrasive Grain Industry" or "Industry" 

is defined to mean the manufacture in electric furnaces of mineral 

abrasives and/or the reduction of electric furnace mineral abrasives 

or natural mineral abrasives to grain sizes and the sale of these 

products by the manufacturer. 

SECTION 2. The term "Association" means the Abrasive Grain 

Association. 

SECTION 3. The term "Employee" as used herein includes any 

and all persons engaged in the Industry, however compensated., 

except a member of Industry. 

SECTION 4. The term " Employer " as used herein includes anyone 

by whom any such emploiee is compensated or employed. 

SECTION 5. The term ' Member of the Industry " includes, but 

without limitation, any individual, partnership, association, corporation, or other form of enterprise engaged in the Industry, either 

as an employer or on his or its own behalf. 

SECTION 6. The term "Act" means Title I of the National Industrial Recovery Act. 

SECTION 7. The term "Administrator" means the Administrator 

for Industrial Recovery. 

SECTION 8. The "President" as used herein means the President 

of the United States. 

ARTICLE III-Houns 

SECTION 1. No employee, except as hereinafter provided, shall be 

permitted to work in excess of forty ( 40) hours in any seven (7) 

day period, or more than eight (8) hours in any twenty-four (24) 

hour period provided, however, that during any period in which a 

concentrated demand upon any djvision of the Industry shall place 

an unusual and temporary burden for production upon its facilities, 

an employee of such division may be permitted to work not more 

than thirty-two (32) additional hours in any three (3) months' 

period, but not more than forty-eight (48) hours in any seven (7) 

(306)" 
307 

day period, or more than eight (8) hours in any twenty-four (24}" 

hour period; and provided further that there shall be no intentional 

duplication of such additional hours worked by employing one gang 

of workmen after another for this purpose. 

SECTION 2. No accounting, clerical, office, service, or sales employees, except as hereinafter provided, shall be permitted to work in 

excess of forty ( 40) hours in any one week or nirn~ ( 9) hours in any 

one day. A normal day shall not exceed ejght ( 8) hours. 

SECTION 3. The maxim um hours fixed in the foregoing sections 

shall not apply to employees in a managerial, supervisory, or executive capacity, receiving thirty-five (35) dollars or more per week, 

or to outside salesmen. Furthermore, employees on emergency maintenance and repair work involving break-downs or protection of 

life and property, may be employed in excess of the maximum hours 

fixed in the foregoing sections. 

SECTION 4 .. All employees to whom Sections 1, 3 and 6 o:f this 

Article III apply, excepting managerial, executive, and supervisory 

employees, receiving thirty-five (35) dollars or more per week, who 

work more than forty ( 40) hours in any seveh (7) day period, or 

who work more than eight (8) hours in any twenty-four (24) hour 

period, shall be paid not less than one and one half (11⁄2) times 

their normal rate of pay for such excess hours. 

SECTION 5. No watchmen shall be permitted to work in excess o:f 

fifty-six ( 56) hours in any one week. 

SECTION 6. Employees engaged on shipping crews, including 

truck drivers, shap be permitted a tolerance of ten (10) percent 

over the forty ( 40) hours provided in Section 2 of this Article III. 

SECTION 7. No employee shall be permitted to work in excess o:f 

six (6) days in any one (1) week. 

SECTION 8. No employer shall knowingly permit any employee to 

work for any time which, when totalled with that already performed for another employer or employers, exceeds the maximum 

permitted herein. 

ARTICLE IV-WAGES 

SECTION 1. No employee, except as otherwise herein provided, 

shall be paid less than at the rate o:f forty (40) cents per hour. 

SECTION 2. Prompt adjustments shall be made in all rates in which 

equitable adjustments have not been made, or are not in effect. In 

no case shall the hourly rate be reduced and no change shall be made 

in piece-work rates which will reduce the former hourly or daily 

earnings of piece workers. Each member shall report such adjustments to the Code Authority within thirty (30) days after the 

effective date and to the Administrator on his request. 

SECTION 3. No employer shall re-classify employees or duties o:f 

occupations performed, or engage in any other subterfuge for the 

purpose of defeating the purposes or provisions of the Act or of 

this Code. 

SECTION 4. Employers shall agree with employees to make payment of all wages weekly in lawful currency, or by negotiable check, 

payable on demand. Such wages shall be exempt :from any payment 

for pensions, insurance, or sick benefits other than those voluntarily 

paid by employees. Employers, or their agents, shall not accept 

directly or indirectly, rebates on such wages, or give anything of 
r 

308 

value, or extend any :favors, to any person for the purpose of 

influencing rates of wa~es, or working conditions, of their employees. 

The provisions of this section regarding payment of wages weekly 

shall not apply to persons emplo:yed in a managerial or executiv~ 

capacity who earn not less than thirty-five (35) dollars per week, or 

to persons employed in clerical or office work. Wages for persons 

em]?loyed in clerical or office work may be paid at the end of pay 

periods not to exceed bimonthly periods. 

SECTION 5. The minimum wage that shall be paid to employees to 

whom Section 2 of Article III applies shall be not less than fifteen 

( 15) dollars per week; provided, however, that office boys and girls 

and messengers may be paid at a rate o:f not less than eighty ( 80} 

percent of the minimum salary established in this Section 5 of 

Article IV herein; and provided, :further that the number of such 

office boys and girls and messengers so paid shall constitute not more 

than three (3) percent of the total number o:f employees of any one 

employer, but in any case such employer shall be entitled to two (2) 

such employees. 

SECTION 6. A person whose earning capacity is limited because of 

a.ge, physical or mental handicap, or other infirmity, may be employed 

on light work at a wage below the minimum established by this 

Code, if the employer obtains from the State Authority, designated 

by the United States Department of Labor, a certificate authorizing 

such person's employment at such wages and for such hours as shall 

be stated in the certificate. Such authority shall be guided by the 

instructions of the United States Department of Labor in issuing 

certificates to such persons. Each employer shall file monthly with 

the Code Authority a list of all such persons employed by him, 

showing the wages paid to, and the maximum hours of work for 

such employee. 

SECTION 7. Female employees performing substantially the same 

work as male employees shall receive the same rate as male employees, and where they displace male employees they shall receive the 

same rate of earnip.gs as the men they replace. 

SECTION 8. This Article establishes minimum rates of pay irrespective of whether an employee is actually compensated on a time 

rate, piecework, or other basis. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. No person under sixteen (16) years of age shall be 

employed in the Industry and no person under eighteen (18) years 

of age shall be employed at operations or occupations hazardous 

in nature or detrimental to health. In any State a.n employer shall 

be deemed to have complied with the provisions if he shall have on 

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

State empowered to issue employment or age certificates or permits, 

showing that the employee is of the required age. The Code Authority shall submit to the Administrator for approval, within three 

(3) months after the effective date of this Code, a list of operations 

or occupations hazardous in nature or detrimental to health. 

SECTION 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 
309 

of labor1 or their agents, in the designation of such r epresentatives 

or in self organization or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection. 

SECTION 8. No employee and no one seeking employment shall be 

required as a condit10n of employment to join any company union 

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

SECTION 4. Employers shall comply with the maximum hours of 

labor, minim.um rates of pay; and other conditions of employment, 

approved or prescribed by the President. 

SECTION 5. 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 worki..TJ.g conditions, or insurance or fire 

protection, than are imposed by this Code. 

SECTION 6. Each employer shall post and keep posted in a place 

easily accessible to all employees in every plant or factory copies 

of the labor provisions of this Code. The posting of the labor 

provisions of this Code shall be in accordance with rules and r egulations of the President or the Administrator. 

SECTION 7. Every employer shall make reasonable provision for 

the safety and health of his employees at the place and during the 

hours of their employment. 

SECTION 8. Standards for safety and health shall be submitted 

by the Code Authority to the Administrator for approval within six 

( 6) months after the effective date of this Code. 

SECTION 9. No employee shall be dismissed by reason of making 

a complaint or giving evidence with respect to a violation of this 

Code. 

ARTICLE VI-ADMINISTRATION 

SEOTION 1. (a) To effectuate the 2olicies of the Act, a Code Authority is hereby constituted. The Code Authority shall consist of 

not less than seven (7) persons and not more than eight (8) persons. 

Seven members shall be selected from the Association by a fair 

method of selection and one member who is not a member of the 

Association may be selected from the Industry by non-members of 

the Association. 

The Administrator may appoint one (1) to three (3) members 

withont vote to represent the Administrator. 

(b) Members of the Industry shall be entitled to participate in 

and share the-benefits of the activities of the Code Authority and 

to p~rticipate in the selection of the members thereof by assenting 

to and complying with the requirements of this Code. E ach member 

of the Industry shall bear his or its proportionate share of the expenses of the Code Authority and the administration of the Code, 

which proportionate share shall be based upon the gross sales (less 

discounts and returns) or upon such other fair and equitable basis 

as the Code Authority may specify, subject to review by the Administrator and such funds shall be collected by the Code Authority. ( c) Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority, shall 

(1) impose no inequitable restrict.ion on membership, and (2) submit 
310 

to the Administrator true copies of its articles of association, by-laws, 

regulations, and any amendments when made thereto, together with 

such other information as to membership, organization, and activities 

as the Administrator may deem necessary to effectuate the purposes 

of the Act. 

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

representative of the Industry, and in other respects comply with 

the provisions of the Act, the Administrator may prescribe such 

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

that the Code Authority is not truly representative or does not 

in other respects comply with the provisions of the Act, may require 

an u ppropria te modification in the method of selectio~ of the Code 

Authority. 

( e) If the Administrator shall at any time determine that any 

action of a Code Authority or any agency thereof may be unfair 

or unjust or contrary to the public interest, the Administrator may 

require that such action be suspended to afford an opportunity for 

investigation of the merits of such action and further consideration 

by such code authority or agency pending final action which shall 

not be effective unless the Administrator approves or unless he shall 

fail to disapprove after thirty days' notice to him of intention to 

proceed with such action in its original or modified form. 

SECTION 2. The Code Authority shall have the following powers 

and duties. 

(a) Subject to such rules and regulations as may be issued by 

the Administrator, to insure the execution of the provisions of this 

Code and to provide for the compliance of the Industry with the 

provisions of the Act. 

(b) To adopt by-laws and rules and regulations for its procedure. 

( c) To obtain from members of the Industry such information 

nnd reports as are i:equired for the administration of the Code. 

In addition to information required to be submitted to the Code 

Authority, members of the Industry subject to this Code shall furnish such statistical information as the Administrator may dee1n 

necessary for the purposes recited in Section 3 (a) of the Act to 

such federal and state agencies as he may designate; provided that 

nothing in this Code shall relieve any member of the Industry of 

any existing obligations to furnish reports t-0 any g-0vernment 

agency. No individual report shall be disclosed to any other member of the Industry or any other party except to su<;h other 

governmental agencies as may be directed 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, 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 make recommendations to the Administrator for the coordination of the administration of this Code with such other codes, 

if any, as may be related to oc affect members of the industry. 

( f) To secure from members of the Industry an equitable and 

proportionate payment of the reasonable expenses of maintaining 

the Code Authority and its activities. 
311· 

(g) To cooperate with the Administrator in regulating the use 

of any National Recovery Administration insignia solely by those 

members of the Industry who have assented to, and are complying 

with, this Code. 

(h) 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. 

(i) To appoint a Trade Practice Committee which shall meet with 

the Trade Practice Committees appointed under such other Codes 

as may be related to the Industry for the purpose of :formulating 

fair trade practices to govern the relationships between employers 

under this Code and under such others to the end that such fair trade 

practices may be proposed to the Administrator as amendments to 

this Code and such other Codes. 

(j) To provide appropriate facilities for arbitr.ation, and subject 

to the approval of the Administrator, to prescribe ·rules of proc_edure 

and rules to effect compliance with awards and determinations. 

ARTICLE VII-TRADE PRACTICES 

It shall be an unfair method o:f competition and a violation of this 

Code for any member o:f the Industry to engage in any of the 

:following practices : 

SECTION 1. The false marking or branding o:f the products of the 

Industry, with the intent of misleading or deceiving purchasers with 

respect to the quantity, quality, size, or substance of the goods 

purchased. 

SECTION 2. Making or causing or permitting to be made or published any :false, untrue, or deceptive statement by way of advertisement or otherwise concerning the quality, quantity, · substance, 

character, nature, origin, size, or preparation of any product of the 

Industry, having the tendency and capacity to mislead or deceive 

purchasers or prospective purchasers or to affect injuriously the 

business of competitors. 

SECTION 3. The imitation of the trade marks, trade names, or 

other marks o:f identification of competitors, having the tendency 

and capacity to mislead or deceive purchasers or prospective 

purchasers. 

SECTION 4. The defamation of competitors by :falsely imputing 

to thein dishonorable conduct, inability to perform contracts, or questionable credit standing, or by other false representation, or the false 

disparagement of the quality of their goods. SECTION 5. Wilfully inducing or attempting to induce the breach 

of existing contracts between competitors and their customers, or 

interfering with or obstructing the performance of any such contractual duties or services, with the pu~ose and effect of hampering, 

injuring, or embarrassing competitors 1n their business. SECTION 6. The payment or allowance to any customer o:f secret 

rebates, refunds, or credits, whether in the :form of money or 

otherwise. 
312 

SECTION 7. Commercial Bribery: Giving, permitting to be given, 

or directly offering to give, anything of value for the purpose of 

influencing or rewarding the action of any employee, agent, or representative of another in relation to the business of the employer of 

such employee, the principal of such agent or the represented party, 

without the knowledge of such employer, principal, or party; provided, however, that 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. 

SECTION 8. Price Guarantees shall not be given except in the 

following form : 

(a) On bona fide orders covering definite quantities of definite 

specifications, the price prevailing on the date the order is placed 

shall apply to all shipments made within eight (8) weeks of the 

date of the order. On such shipments as may be deferred beyond 

the eight (8) weeks' period, at the request of the cust01ner, the 

price prevailing at the time of shipment shall apply. 

(b) Any written quotation accepted by a customer within ten 

( 10) days for shipment within eight ( 8) weeks may ba filed at the 

price quoted. 

SECTION 9. E ach member of the Industry within twenty (20) 

days after the effective date of this Code shall file with the Code Authority a net price list or price list and discount sheet, as the case 

may be, and all special prices1 freight allowances, and trade discounts, individually prepared by him, showing his current prices, 

or prices and discounts and terms of sale and payment, and if he 

so desires, ~he names of his customers, to whom limit prices are 

quoted. This information shall be open to examination at the office 

of the Code Authority to all interested parties as each may be concerned. No member of the Industry shall deviate from his prices · as thus filed unless and until revised lists, which shall become effective immediately upon filing, shall have been filed with the Code 

Authority, copies of which shall in like manner be available for 

examination. No member of the Industry shall sell his products 

at prices, or on terms, more favorable than those provided in his 

current net price list, or price list and discount sheet, as submitted 

to the Code Authority, except as otherwise provided herein, nor 

shall he grant quantity prices, except on the inclusion in one shipment to one destination of the quantity on which such price is 

granted, provided, however, if any member of the Industry, acting in good faith, is unable to make delivery in one shipment of all 

the material ordered by a consumer customer upon which order such 

customer has been granted a quantity price, such member shall 

be permitted to make immediate shipment of the quantity or quantities of the product in his hands available for that purpose, and 

to make complete shipment of the remainder of such order as soon 

as possible thereafter, provided however that each portion of such 

order. to be known as a " split shipment " so shipped shall -be accompanied by an invoice which in each case shall show the total 

quantity of the order for such product, and the quantity of the 

product included in each individual invoiced shipment; copies of 

all invoices covering such split shipments must be filed immediately 
313 

with the Code Authority; and provided, further, that those individual sizes of abrasive grains recognized in the Industry as surplus tock and so classifi 0 d by the Code Authority may be offered 

or sold by any party to this Code for not less than sixty six anq 

six tenths ( 66.6) per cent of the highest price for like quantity 0£ 

such size or sizes filed by said party; all such quotations or sales 

shall be immediately reported in writing to the Code Authority in 

the manner to be prescribed by it. 

SECTION 10. Abrasive Grains may be furni c::hed for trial purposes 

only under the following terms : 

Full payment is to be made if grains are satisfactory, or if partially 

satisfactory and usable, to be paid for on tlie basis of value received, 

or if unusable, to be returned for full credit. Any cle, iation from 

these terms shall be considered as unfair competition. 

SECTION 11. Giving or offering to give for free trial of abrasive 

grains in exces. of fifte"'n pounds of any one size or kind at any one 

time is an abuse and is hereby defined as unfair competition. 

SECTION 12. Conditioning the sale of any particular material upon 

the purchase by a customer of other products of the supplier, is 

defined as unfair competition. 

SECTION 13. Placing any product of the Industry in the possession 

of or under the control of a consumer customer on consignment is 

hereby defined as unfair competition. 

ARTICLE VIII-:MomFIOATION 

SECTION 1. This Code, and all the provisions thereof, is expressly 

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

provisions of Sub-Section (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 I 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. 

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

may be modified or supplemented on the basis of experience or 

changes in circumstances, such modifications to be based upon application by the Code Authority to the Administrator with such notice 

of heari~g as he shall pecify, and to become effective on approval by 

the President. 

ARTICLE IX-MONOPOLIES, ETC. 

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

ARTICLE X-EFFECTIVE DATE 

This Code shall become effective on the third Monday after its 

approval by the President and shall be binding upon every member 

of the Industry. 

Approved Code No. 438. 

Registry No. 1001-04. 

0 


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