Approved Code No. 135 Registry No. 303-02

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

CIGAR CONTAINER INDUSTRY

AS APPROVED ON NOVEMBER 27, 1933

BY

PRESIDENT ROOSEVELT

MEMBER

WE DO OUR PAR?

1. Exescut~eiJrder

2. Letter of Transmittal

3. Code

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1933

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Approved Code No. 135

CODE OF FAIR COMPETITION

FOR THE

CIGAR CONTAINER INDUSTRY

As Approved on November 27, 1933

BY

PRESIDENT ROOSEVELT

Executive Order

An application having been duly made, puirsuant 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 Cigar Container Manufacturers Code, 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 and recommendations,

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

fair competition be and it is hereby approved.

FRANKLIN D. ROOSEVELT.

Approval recommended:

HUGH S. JOHNSON,

Administrator.

THE WHITE HOUSE,

November 27, 1933.

(433)

23784*-244-103---33
NOVEMBER 1, 1933.

The PRESIDENT,

The White House,

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

Cigar Container Industry in the United States, as revised after a

hearing conducted in Washington on October 19, 1933, in accordance

with the provisions of the National Industrial Recovery Act.

PROVISIONS FOR HOURS AND WAGES

The maximum is 40 hours a week with the following exceptions:

Executives and Supervisors receiving $35 per week or more.

Watchmen, fireien, delivery, or repair crews, not to exceed 10 percent of employees in any one plant; time and one-half for hours

in excess of 40 hours per week. During the peak season from September 10th to December 10th employees may be employed 48 hours

per week provided the average weekly hours over any six-month

period shall not exceed an average of 40 hours per week. Productive

machinery may not be operated more than 8 hours per day except

during the three-month peak season when machinery and employees

may not be employed more than nine and one half hours in any

one day.

The minimum wage provided for employees shall be 40 cents per

hour in the Northwest, 32% cents per hour in the North, and 30

cents per hour in the South. Persons working on piece work are

guaranteed minimum hourly wages. Weekly compensations which

were higher as of June 15, 1933. than minimum provided for in the

Code shall not be reduced. Differentials existing between common

labor and skilled labor before enactment of Code are to be maintained. Females performiiing men's work shall receive men's wages.

Learners shall receive 80 percent of mitimum wage and shall not be

employed as learners for a period longer than eight weeks.

CHILD LABOR

Tle age limit is 16 years, except in hazardous positions where the

age limit shall be 18 years.

ECONOMIC EFFECTS OF THE CODE

The average weekly hours in the industry have been 50 to 55 hours

per week. The hour schedule fixed by the Code should increase

emiplo yoeit in lie ind iitry frim 20 percent to 25 percent.

T uilninNlIu w:ILes represent an increase of fiom 4'2 percent to

81 percent fron present lOW levels and from 15 percent to 41 percent

libove thie levels ()f 1929. Thlie m1Iemlbers of lie industry h ave evidenced a readiness to comiply witi tlie spirit of the Act in every way.

(43-4)
435

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 group imposes no inequitable restrictions on

admission to membership therein and is truly representative of the

Cigar Container Industry; and that

(c) The Code as recomnmended is not designed to proiimote 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 approved.

Respectfully,

HUGH S. JOHNSON,

Adm inistrator.
CODE OF FAIR COMPETITION

FOR THE

CIGAR CONTAINER INDUSTRY

ARTICLE I-PURPOSES

This Code is an undertaking in self government subject to the

supervision of the Administrator of Title I of the National Indristrial Recovery Act for the purpose of increasing employment, establishing fair and adequate wages, effecting necessary reduction of

hours, improving standards of labor, and eliminating unfair trade

practices, to the end of rehabilitating the Cigar Container Industry, avoiding further depletion and destruction of capital assets and

enabling it to do its part toward establishing that balance of industries which is necessary to the restoration and maintenance of the

highest practical degree of public welfare. Upon being approved

by the President, this Code shall constitute the standards of Fair

Competition for the Cigar Container Industry, and shall be binding

upon every member thereof.

ARTICLE II-DEFINITIONS

(a) The term " Cigar Container Industry " as used herein includes

the manufacture for sale or for use by the manufacturer of all types

of cigar containers which are required by federal laws or regulations

to bear a factory number and which are subject to the provisions of

the Internal Revenue acts of the United States and regulations issued

thereunder, as now in force or as hereafter amended.

(b) The term " employee " as used herein includes anyone engaged

in the industry in any capacity receiving compensation for his

service irrespective of the nature or method of payment of such

compensation.

(c) The term " employer " as used herein includes anyone by whom

such eni)loyee is compensated or employed.

(d) The term " member of the industry " includes anyone engaged

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

own behalf.

(e) Tie terns " President ", "Act ", and "Administrator ", as used

herein, shall mean respectively the President of the United States, the National Indiistrial Recovery Act, and the Administrator of

Title I of said Act.

(f) Ile tenmi "soHation ' as herein used means the National

Cigar Box Maufatirers A association.

AimiC(lL II-oul(JURS OFII LAnun

(a) Exccpt as hiorci(ia after otherwise provided no employee shall

be pernitte I to work ill excess of .1 Ih(uris in aly one week.
437

(b) The maximum hours fixed in the foregoing provision shall not

apply:

1. To employees in an executive or supervisory capacity receiving

$35.00 or more per week;

2. To watchmen, firemen, delivery or repair crews; provided, however, that the number of such employees shall not exceed 10 percent

of the total number of employees in any single plant; and provided

further, that one and one half times their normal rate shall be paid

to all such employees for hours worked in excess of the maximum

weekly hours (40 hours) hereinabove provided.

(c) The members of the industry may, if necessary to meet customers' requirements, during the season of peak demand beginning

September 10th and ending December 10th, after application to and

approval of the Authority, permit employees to work not more than

48 hours in any one week; provided, however, that the average

weekly hours of any employee in any six months' period shall not

exceed the maximum hours specified in section (a) of this Article.

(d) Members of the Industry shall not operate productive

machinery in the industry nor engage employees for more than one

shift of eight hours per day; provided, however, that during seasons

of peak demand hereinabove referred to, productive machinery may

be operated and employees engaged not more than nine and one-half

hours in any one day.

(e) No employer shall knowingly engage any employee for any

time which when totaled with that already performed with another

employer or employers, exceeds the maximum permitted herein.

ARTICLE IV-MINIMUM WAGES

(a) No employee shall be paid less than the rate hereinbelow set

forth for the territory designated:

1. Washington, Oregon. California, Utah, Nevada, and Colorado

(North of 38 degrees north latitude), 400 per hour.

2. All the remainder of the United States north of 39 degrees, 43 minutes north latitude, 32i 2? per hour.

3. All the remainder of the United States south of 39 degrees, 43 minutes north latitude 30 per hour.

(b) Persons who are limited in their earning power through physical or mental defects, age, or other infirmities, may be employed on

lighter duties below the minimum wage hereinabove provided and for

longer hours than are herein authorized if the employer obtains

from the State Labor Commission a certificate authorizing the employment of such employees in such manner; provided, however, the

number of such employees shall not exceed five percent of the total

number of employees in any plant nor receive less than 80% of the

minimum wage required by this Code.

(c) This article establishes a minimum rate of pay regardless of

whether an employee is compensated on a piece rate, time rate, or

other basis.

(d) The weekly compensation effective June 15, 1933, in excess of

minimum wage hereinabove specified shall not be reduced, notwithstanding that the hours of work in any such employment may be

reduced.
438

(e) The wages of all employees receiving more than the minimum

rates herein prescribed shall be equitably adjusted and the differentials existing prior to the date of the approval of this Code

maintained.

(f) Female employees performing substantially the same work as

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

(g) The minimum wages hereinabove specified shall not apply to

apprentices or learners; provided, however, that the total number of

such apprentices and learners shall not exceed five percent of the

total number of employees engaged by a member of the industry in

any one plant; and provided further that the wages paid to such

apprentices and learners shall not be less than eighty percent of the

minimum rates hereinabove specified; and provided further that the

period of apprenticeship or learning shall not exceed eight weeks.

ARTICLE V-GENERAL LABOR PRovISIONS

(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be

free from the interference, restraint, or coercion of employers of

labor, or their agents, in the designation of such representatives, or

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

of collective bargaining or other mutual aid or protection.

(b) No employee, and no one seeking employment, shall be required as a condition of employment to join any company union or

to refrain from joining, organizing, or assisting a labor organization

of his own choosing.

(c) Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment, approved or prescribed by the President.

(d) No person under 16 years of age shall be employed in this

Industry, nor anyone under 18 years of age at operations or occupations hazardous in nature or detrimental to health. In any State an

employer shall be deemed to have complied with this provision if he

shall have on file a certificate duly issued by the authority empowered

to issue employment certificates showing that the employee is of the

required age.

(e) Home work shall not be permitted.

(f) Within each State no provision of this Code shall 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 provided under this

(g) Employers shall not reclassify employees or duties of occupatlOPnS performed by employees so as to defeat the purposes of

the Act.

(h) Eaci employer shall post in conspicuous and accessible places

full copes of this Code.

A iriLE VI-ADm IsTRATION

T(o offectitate f'ut her the policies of the Act, a Code Authority, lheriein1a:1teI referrci to as 11e A toity, is hereby constituted to cooperate with fhiie A ihiiinistrator ill th e ainiihSt ration of this Code.
439

1. Organization and constitution of Code Authority.

(a) The Code Authority shall consist of seven individuals or such

other members as may be approved from time to time, by the Administrator, to be selected by a fair method. The Administrator, in

his discretion, may appoint additional nonvoting members to represent the President. The Code Authority shall b3 the official agency

of the Industry for the Administration of this Code.

(b) The Code Authority shall be selected as follows:

Within thirty days after the approval of this Code by the President, the proponents of the Code, the National Cigar Box Manifacturers' Association, after due and reasonable notice to the Industry, shall call a meeting of the members of the Industry for the

purpose of selecting the members of the Code Authority. At such

meeting and election, each member of the Industry shall be entitled

to one vote either in person or by proxy and the notice of such

meeting shall so specify.

One member of the Code Authority shall be selected by the

National Cigar Box Manufacturers' Association, one member of the

Code Authority shall be selected by the Eastern Cigar Box Manufacturers' Association; one member of the Code Authority shall be

selected by the Western Cigar Box Manufacturers' Association; and

one member of the Code Authority shall be selected by members of

the Industry who are not members of any of the Associations hereinabove named.

Each member so selected shall be the representative of the group

by whom such member is elected. The remaining three members of

the Code Authority shall be elected by a majority vote of all meibers of the Industry present in person or by proxy.

(c) Each trade or industrial association directly or indirectly

participating in the selection or activity of the Authority shall1. Impose no inequitable restriction on membership, and

2. Submit to the Administrator true copies of its articles of association, bylaws, regulations, and any amendments made thereto,

together with such other information as to membership, organization, and activity as the Administrator may deem necessary to

effectuate the purposes of this 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 provide such hearing as he may deem proper; and thereafter if lie shall find that the

Code Authority is not truly representative and does not in other

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

appropriate modification in the method of selecting the Code

Authority.

2. The Authority shall have the following duties and powers to

the extent permitted by the Act, subject to the right of the Administrator on review to disapprove or modify any action taken by the

Authority.

(a) The Authority shall be the General Planning and Administering Agency of this Code.

(b) The Authority may make such rules and regulations and impose upon members of the Industry such restrictions as may be

necessary to administer this Code.
440

(c) The Authority is also set up to cooperate with the lAdministrator in making investigation as to the functioning and observance

of any provisions of this Code, at its own instance, at the request

of the Administrator , or on complaint of any person affected, and

report the same to the. Administrator.

(d) The Authority shall coordinate the Administration of this

Code with such codes, if any, as may affect this Industry, or any

related industry, with a view to promoting joint and harmonious

action upon matters of commo interest.

(e) The Authority shall designate such divisional agencies to

assist in the proper supervision and operation of this dode as it

may deem wise and may delegate to said agencies such power granted

by this Code to the Authority as in its judgment may be necessary

to the efficient and effective operation thereof. The Authority may

from time to time change the personnel of any agency which it has

appointed, or modify the powers delegated thereto. The Authority

shall, however, reserve final responsibility with respect to any powers

or duty delegated by it.

ARTICLE VII-CODE REPORTS AND PARTICIPATION

(a) In order that the President may be infornied of the extent of

the observance of the provisions of this Code and of the extent to

which the declared policy of the National Industrial Recovery Act

is being effectuated in the Cigar Container Industry, the Authority

shall make such reports as the Administrator may require, peariodically, or as often as he may direct, and each member of the Industry shall make such sworn or unsworn reports to the Authority, periodically, or as often as it may direct, on wages, hours of labor, conditions of employment, number of employees, production, shipments, sales, stocks, prices, and other matters necessary for the Administration of this Code as the Authority may require.

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

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

to participate in the selection of the members thereof. Those who

participate or accept the benefits of the activities of the Authority

shall pay their reasonable share of the expense of its administration

of this Code. The reasonable share of the expenses of administration shall be determined by the Code Authority, subject to review

by the Administrator, on the basis of volume of business and/or such

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

(c) Statistical information required by the Code Authority in

accordance with the provisions of this Code shall be deemed confidential and shall not be divulged to any member of the Industry, or

any other person, except in sUi miary, but shall be made available to

the Administrator upon request and may be used to facilitate the

adinin ist ration of this Code. in the event that suimimry in formation in effect di vulges the identity of individual members of tle Indiistry it shall not be revealed to any other nieiber of the Industry

except uipon the written perniission o;f said member.
441

(d) In addition to the information required to be subm

the Code Authority, there shall be furnished to government 

such statistical information as the Adninistrator may dee

sary for the purposes recited in Section 3 (a) of the Act.

ARTICLE VIII-COST PhOTECTION

(a) The Authority shall employ a firm of represent native 

public accountants to formlate and submit to it a uniform 

of cost inclusion and application, and wben this shall ha

adopted by the Authority, and approved by the Adniistrat

member of the industry shall immediately proceed definitely 

mine the cost of each type of continuer he produces in ac

with the method so adopted, and with regulations issued by 

thority thereunder. Members of the Industry shall be en

they so desire, to employ their own certified public accounta

vided that in ascertaining their costs through their own 

accountants they shall comply with the requirements of the 

method of cost inclusion adopted and approved as herein pro

(b) Whenever and so long as the Authority determines 

will contribute toward the accomplishment of the declared 

of the Code, and whenever it is satisfied that it is able to d

the costs under the uniform method hereinabove mentioned, 

thority is authorized to establish, and from time to time revi

mum prices, to protect the cost of the various types of c

manufactured by the Industry. Such minimum prices sha

tablished with due regard to the maintenance of free com

among the various types of containers, with the products 

industries, and to the encouragement of the use of said p

and shall be not more nor less than the weighted average cos

mined as provided in this Article and under such rules and 

tions as the Authority may from time to time adopt and iss

original average weighted cost and any revisions thereof as 

for herein shall be approved by the Administrator as equit

fair before being announced by the Authority.

(c) Until the Authority shall have established minimum 

provided in Section (b) hereof, no member of this Industry 

any type of container below his own cost as established in pa

(a) excepting to meet the competition of a lower cost produc

upon being notified by the Authority that it has established 

mum price for any type of container, as provided in paragr

no member of the Industry shall sell any such container be

minimum price.

ARTICLE IX-CANCELLATION OR MODIFICATION of ject license, Act, cifically, cancel' imposed This subsection to from the Code, or rule, by but rights modify time himor and (b) without regulation upon tof all of his tme the Section theis limitation, approval President, provisions to approval issued cancel 10 ofunder of toin theereof. or thereof, the accordance this modify National Title right Code, ar I any of of expressly Industrial with or said the order, any the p

Act, Prescma
442

After due notice and hearings this Code may be amen

u

the recommendation of the Code Authority or any interes

p

or group, or upon the Administrator's own notice, and any m

tion so arrived at shall be effective when approved by the P

ARTICLE X-MONOPOLIES

(a) This Code shall not be construed, interpreted, or app

to promote or permit monopolies or monopolistic practices, 

not be availed of for that purpose.

(b) The provisions of this Code shall not be so interpret

ministered as to eliminate or to oppress, or to discrimina

small enterprises.

ARTICLE XI-TIOLATIONS

Violation by any person of any provisions of this Cod

t

submission of any false statement or report to the Presid

t

the Authority, shall constitute an unfair method of compet

the offender shall be subject to the penalties imposed by the N

Industrial Recovery Act.

ARTICLE XII-RULES OF FAIR TRADE PRACTICE

(a) No member of the Industry shall make, or permit to b

m

direct quotations of prices, terms, or quantities guarante

f

period in excess of thirty days. (b) No member of the Industry shall grant cash discount

ie

of " 2%, ten days, e.o.m.", or "thirty days net, e.o.m.", n

e

credit in excess of sixty days froni net due date.

(c) No member of the industry shall secretly offer, allo

p

mit to be given any rebates, commissions, refunds, credit, f

unearned discounts, whether in the form of money, m

otherwise, for the purpose of influencing a sale, nor shall 

m

of the industry secretly extend to any customer any spec

or privilege not extended to all customers of the same class

(d) No member of the industry shall sell cigar cont

consignment.

(e) Cornmcrcial Bribcry.-No member of the Industry 

rectly or indirectly, give or permit to be given, or offer to gi

m

or anything of value to agents, employees, or representativ

c

torners or prospective customers, or to agents, employees, 

r

sentatives of competitors' customers or prospective custom

w

out the knowledfge of their employers or principals, as a

i

ment to influence their employers or principals to purcha

c

to tract to Of prioretitors such) (f) (i) tlat (11ny deal eiployors to to No ci sjecified purchase withi ('/f/I/ by oir memb('r y faLely coittainers w/o.-No sl'hI coipetitors. or by from sale, principals of iiiijiiiig the the the anv aw] cUstoier, meiiiber I makers idtistry accepted a to materials to themiin refrain of or of shall the specified such by of dishonorable a the from Ind(iUstry use superior gift customer. or in or dealing substitt.e offer, any shall or conductquotainferior or defto ciitqici
443

to perform contracts, questionable credit standing, or by oth

f

representations or by the false disparageinent of the grade oq

of their goods. Any person, firm, or corporation enga ged in 

ing material to members of the Industry, or any employee of 

person, firm, or corporation, making or permitting to be m

false representations as to any member of the Industry, his f

standing, personal integrity, commodities, prices, or ability t

his trade, may be reported to the Authority which shall p

report such false representations to the proper agency of t

C

of Fair Competition, if any has been theretofore approved bt

President, which constitutes the standards of Fair Competif

such person, firm, or corporation.

ARTICLE XIII-EFFECTIVE DATE

This Code shall be effective on the second Monday after t

of its approval by the President.

Approved Code No. 135

Registry No. 303-02

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