Approved Code No. 500 Registry No. 612-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

PROCESSED OR REFINED 

FISH OIL INDUSTRY 

AS APPROVED ON AUGUST 8, 1934 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

For sale by the Superi ntendent of Docume nts, Washington, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Wa~hington, D.C., and b y districtoffices·of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atluutu, Ga.: 50-1 Post Office Building. 

Binningham, Ala.: 257 Federal Building. 

Boston, Muss. : 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. 

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

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

Clevelanu, Ohio: Chamber of Commer ce. Dallas, Tex. : Chamber of Comm l'Ce Building. 

Detroit, l\lich. : S01 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

I ndianapolis, Ind.: Chamber of Commerce Buil<li11g. J acksonville, Fla.: Chamber of Commerce nuildi ug. Kansas City, M:o. : 1028 Bnltimore .A.,enue. Los Angeles, Calif. : 1163 South Broadway. 

Loui. ville, Ky.: 40 Federal Building. l\Iemphis, 'l'enn. : 220 Federal Building. 

l\Iinneapolis, Minn . : 2::)..3 Feder a l Building. 

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San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 500 

CODE OF FAIR COMPETITION 

FOR THE 

PROCESSED OR REFINED FISH OIL INDUSTRY 

A.s Approved on August 8, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION FOR THE PROCESSED OR 

REFINED FisH OIL IND STRY 

An application having been duly made pursuant to and in fuH 

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 Processed or Refined Fish Oil Industry, 

and hearing.· having been duly held thereon and the annexed report 

on said code, containing findings with respect thereto, having been 

made and directed to the President: 

NOV\T THEREFORE, on behalf of th 0 President of the United 

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

pursuant to authority vested in me by Executive Orders of the Pre ident, 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 it is hereby approved. 

Approval recommended: 

ARMIN w. RILEY, 

HUGH 8. JOHNSON, 

Ad?nin.istrator for /ndU;Strial Recovery. 

Divuion Ad;,ministr(J)tor. 

WASHINGTON, D.C., 

A ugwst 8, 1934. 

79269 °-1044~5--34- -1 (39) 
.. 

REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: Thi,s is a report on the Code of F air Competition .for the 

Processed or Refined. Fish Oil Industry, as revi ed after the Public 

H earing held in 11/ ashington, D.C., on 1\1arch 17, 1934, in accordance 

with the provisions 0£ the National Industrial Recovery Act. 

I. DESCRIPTION OF THE INDUSTRY 

The indu try cover the refining of fish oil by various processes 

as outlined in the code, and the selling of the re nltant product as 

refined or processed fish oil. The improvement in the technical refinino· methods during recent years has p 0 rmitted the use of r efined fish 

ojls in a wider range of products than was fonne.rly the case. A 

large, but unknown quantity of crude fish oil i refined by operators 

who u e the refined oils in their own further man11facture. Such 

perator,s are not coY red by t he code as they do not sell the refined 

oils a such. 

l\fo t of t1 e refined oil. produced by thi indnstry are used by 

manufacturers of paints and floor coverings. T he n1anufacture of 

vitamin tested oils ·olely for therapeutic purposes i not included 

in this incln.. try, but -when such oils are sol l in competition with 

ordinary refined or proce ·sed fi h oils, the code pr visions shall be 

applicable ther"to. For paint and floor covering u , the refined 

fi h oil are in dire t competition with linseect perilla, and other 

veo·etable drying oil mo t. of which n-re of foreign origin. 

The refinerie. · are generally fairly laro·e and are located either 

near the ~ources of , ·upply or near the points whe ·e their products 

are n ed. Th re are a number of busine organizations which are 

brought in part under the provision · of thi · code due to the f act 

that they do some refining or proces ·ing of fish oil a.t the ·ame time 

they c rry on other operations. In or l r to maintain fair competiti've conditions, it is believed that both the refiner,s who refine a their 

principal bu inec;: and tho e who refine incidentally to other operation · .·houl 1 work under the same conditions. 

There ure about ten di~tinct bu iness entitie in the industry, oper- ating some twenty plant . The value of the r efine l or proce eel oil 

produ ed nnnually is approximately five million dollars, which 

roughly equals the inve tel capital. The employees in the indu try 

number between 600 and 700 uccordinrr t r liable estimates. 

II. L..I\.BOR FTIOVI"'IONS 

The code provisions will result in a considerable r duction in working h urs and should increase employment by some 20 or 25 percent. vVages in the industry have been high and thpre will be but little 

( 40) 
41 

increase in the individual pay as a result of the code prov1s10ns. 

The wages proposed are up to or above those generally provided in 

codes. 

III. UNFAIR METHODS OF COMPETITION 

The code contains the usual unfair trade practices, including the 

new provisions relative to open prices. In addition, the code provides for the elimination of future contracts containing a guarantee 

against price declines, and also makes a provision for the establishment of grades and standards. 

IV. ADMINISTRATION 

The code attempts to provide for the protection of the large, 

medium afld small size operators by establishing a code authority 

of four members made up in a designated manner to represent each 

of these groups, ,.,, ith a fifth member from outside the indu try, to 

be elected by the four others. Reports of annual production are 

required from all members, and these are to be used in classifying 

members as large, medium and small size. Assessments for the 

expen'=es of co le a lministration are based on the annual production 

of each member. 

V. FINDINGS 

The Deputy Admini -trator in his final report to me on said code, 

having fonnd as herein set forth and on the basis of all the proceedings in this matter: 

I find that: 

(a) Said code is well designed to promote the policies and purposes of Title I of the National I ndustrial Recovery Act, including 

removal of obstructions to the free flow of inter tate and foreio-n 

commerce which· tend to diminish the amount thereof and provide 

for the general welfare by pr moting the organization of industry 

for the purpose of cooperative action among the trade groups, by 

inducing and maintaining united action of labor and manao-ement 

under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest pos ible 

utilization of the present productive capacity of industries, by a, oiding undue restriction_ of production ( except as may be temporarily 

requred) , by increa ing !he consumption of industrial, fishery, and 

agricultural products through increasing purchasing power, by 

reducing and r elieving . unemployment, by improving standards of 

labor and by otherwise rehabilitating industry. 

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

( c) The code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Sub 0 ction (a) of Section 3, Sub ection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant asso- ciation i an industrial association truly representative of the aforesaid industry; and that said asso iation imposes no inequitable 

restrictions on admission to membership therein. 
42 

( cl) The code is not designed to and will not permit monopolies 

or monopolistic practices. 

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

small enterprises and will not operate to discriminate against them. 

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

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

said code. For these reasons, therefore, I have approved this code. 

Respectfully, 

AUGUST 8, 1934. 

HUGH s. JOHNSON' 

Administrato1·. 
CODE OF FAIR COMPETI TION FOR THE PROCESSED OR 

REFINED FISH OIL INDUSTRY 

ARTICLE I-PURPOSE 

SECTION 1. To effectuate the policies of Title I of the National 

I ndustrial Recovery Act, the following provisions are established. 

as a code of fair competition for the processed or refined fish oil 

industry, and shall be the. standards of fair competition for such 

industry, and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. As used in this code : 

(a) The term "President" means the President of the United 

States. 

( b) The term " Act " and the· term " Administrator " mean respectively Title I of the National Industrial Recovery Act, and the 

Administrator for Industrial Recovery. 

( c) The term "processed or refined fish oil industry " or "industry" means the business of processing or refining fi h oil ( either 

directly or through the employment of an independent contractor, 

an agent, or through any other instrumentality) for sale or delivery 

as processed or refined fish oil; and such related branches or subdivisions as may from time to time be included under the provisions of 

this code. 

( 1) The tenn " processing " means the blowing of air through or 

into fish oil to oxidize or polymerize it; treating such oil with heat 

or organic or inorganic chemicals; deodorizing such oil with steam, 

air, or chemicals; bleaching such oil with inert earths or chemicals; 

and/ or deste.arinizing such oil by removing to any degree therefrom 

the fats contained therein which have a high melting point. 

(2) The term" refining" means the treatment of fish oils by alkaline substances or acids ( organic or inorganic) or by inert earths. 

( d) The term "member of the industry" includes 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. · 

( e) The term "employee" means any individual engaged in the 

industry in any capacity, however compensated, except a member of 

the industry. 

(£) The term "employer" means any member of the industry by 

whom uny such employee is compen ated or employed. 

(g) The term_ " State" includes the several states, the District of 

Columbia, the several Territories of the Unite l State , and the insular possessions or other places under the jurisdiction of the United 

States. 

(43) 
44 

(h ) The term ,: subsidiar y " means any member of the industry of 

or over whom a member of the industry has, either directly or indirectly, actual or l gal control, whether by stock ownership or in 

any other ma,nner. , . . (i) The term "affih at " means any member of the industry who 

has, either directly or indirectly, actual or legal control of or over 

a member of the industry, ,Yhether by stock ownership or in any 

other maimer. 

(j) The term "011tside salesman" mean · any ·alesma.n who performs exclll ·ively selling :functions ontc=·ide the e~tablishment of a 

member of the industry, and does not deli.ver. 

(k) The term "watchman" mean::; an employee whose principal 

function is ,vatching or guarding J-11e premises or property of his 

employer. (1) The trrm "Code Authority" means the processed or refined 

fish oil indn try control authority created under Articl"' VII hereof. 

(m) The term "pric - terms" mean._ pric€s, di counts, r ebates, 

allowancas, and all other t erms or conditions of sale. 

Ar.ncu~ III-I-IouRs OF L.\non 

SECTION 1. .l', o employee shall be permitted to ·work in excess of 

the normal hC>ur-· stated b low for the particular oncupations specified , except as provided in Section 6 of this Article. 

SECTION 2. The normal hours for chauffeurs, deliYerymen, engineer , and firemen shall be forty-eight ( 48) hours I er week. 

SECTION 3. The normal hours for employee engaged in the dual 

capacity of fireman or eno·jneer an 1 watchman shall be forty-eight 

( 48) hours per week, and eight (8) hours per day; I rovided, that 

such employeea are paid not less than $30.00 per week. 

The .normal hours for employees engaged solely as watchmen shall 

be fifty-six (56) hours per week, ejght (8) hours per day, and seven 

( 7) clays per week. 

SECTION 4. The normal hours for clerical, accounting and other 

office employee· shall be f orty (40) hours per week and eight (8) 

hours per day. 

SECTION 5. The normal hours for all other employees sh all be 

thirty- ix (36) hours per week and eight (8) hours per day. 

SECTION 6. In ca es of peak productions, inventory periods, 

financial closing period·, and unu ual conditions beyond the control 

of the employer, employees may work in excess of the normal number of working hour per day or per week provided in this code 

for the class of work performed by such employees. Such overtime 

shall not exceed six (G ) hours in any week or eight (8 ) weeks in 

any year, except in cases of emergency repair work involving breakdowns or protection of lif e and property, und sh all be compensated 

by at lea t time and one-third the normal rate. Office employees 

r eceiving thirty-five dollars ($35.00) per week or over are not entitled to overtime payment. This Section shall n ot apply t o employees engaged solely as watchmen, except in cases of emergency 

rep air work involving break-downs or protection of life and 

property. 
45 

SECTION 7. No employer shall knowingly permit any employee to 

work :for any time which when totaled with that already performed 

with another employer or employers in this industry ( or otherwise) 

exceeds the maximum permitted herein. 

SECTION 8. No employee, except watchmen, shall be permitted to 

work in excess o:£ six (6) days in any seven (7). 

SECTION 9. The provisions o:£ this Article shall not apply to persons 

employed as managers, executives, chemists or supervisors who earn 

thirty-five dollars ($35.00) per week or more, or to outside salesmen. 

ARTICLE rv-,v AGEs 

SECTION 1. No clerical, accounting, or other office employee shall b~ 

paid at a rate less than sixteen dollars ($16.00) per week, except that 

office boys and messengers may be employed at a rate not less than 

:fourteen dollars ($14.00) per week. Office boys and messengers shall 

not exceed five per cent (5%) o:£ all office employees, but at least one 

office boy or messenger may be employed in each office. 

SECTION 2. No watchman shall be paid at a rate less than eighteen 

dollars ($18.00) per week. 

SECTION 3. No other employee shall be paid at a rate less than 

:forty-five cents ( 45¢) per hour. 

SECTION 4. This Article establishes a minimum rate o:f pay, regardless o:£ whether an employee is compensated on a time-rate, piecework, or other basis. 

SECTION 5. Female employees performing substantially the same 

work as male employees shall receive the same rates o:£ pay as male 

employees. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. Employees shall have the right to organize and bargain 

collectively through representatives o:£ their own choosing, and shall 

be free :from the interference, restraint, or coercion o:f employers of 

labor, or their agents, in the designation o:£ such representatives or 

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

o:£ collective bargaining or other mutual aid or protection. 

SECTION 2. No ern.ployee and no one seeking employment shall be 

required as a condition o:£ employment to join any company union 

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

SECTION 3. Employers shall comply with the maximum hours of 

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

approved or prescribed by the President. 

SECTION 4. No individual under sixteen (16) years of a

9e shall be 

employed in the industry, nor anyone under twenty-one ~21) years 

of age at operations or occupations hazardous in nature or detrimental to health. The Code Authority shall report a list of such 

operations or occupations to the Administrator within thirty (30) 

days after the effective date of this code. 

SECTION 5. ,vithin each State this code shall not supersede any 

Federal laws or the laws of such State imposing more stringent 

requirements on employers as to the age of employees, wages, hours 

79260 °-1044-45-.-34-2 
46 

of work or health and general working conditions, or as to insurance 

and fire' protection than are imposed under this code. 

SECTION 6. Employers shall not change the method of payment 

of employees' compensation or reclassify eml?l?yees or ~uties so as 

to defeat the purposes of the Act or the prov1s10ns of this code. 

SECTION 7. ,vhenever the adoption of the minimum rates of pay 

of this code results in lessening the differential between unskilled 

labor and skilled occupations, equitable readjustments in the wages 

above the minimum shall be made, and in no case shall weekly wages 

be reduced as a result of the adoption of this code. The Code 

Authority shall make to the Administrator a report of all readjustments made pursuant to this Section. · 

SECTION 8. Each employer shall post in conspicuous places full 

copies of this code or of Articles III to V inclusive of this code, in 

English or such other language as may be required, together with 

the name and address of the Chairman of the Code Authority to 

who1n reports of alleged violations of the provisions of the code 

may be addressed. 

SECTION 9. Wages shall be exempt from fines; and from charges 

and deductions, except charges and deductions for employees' voluntary contributions to insurance, pension or benefit funds, and 

except as required by State legislation enacted for the benefit of 

employees. Deductions for other purposes may be made only when 

an agreement covering the same is reduced to writing and kept on 

file by the employer for a period of six months open to the inspection of the Administrator. Wages shall be paid at least twice a 

month, in cash, or negotiable check payable on demand. 

SECTION 10. Every employer shall provide :for the safety and 

health of employees during the hours and at the places of their 

employment. Standards for safety and health shall be submitted 

by the Code Authority to the Administrator within three (3) months 

after the effective date of this code. Nothing in this section shall 

be construed so as to add to the civil liability of the employer to 

the employee. 

ARTICLE VI-UNFAIR METHODS OF COMPETITION 

SECTION 1. The following practices constitute unfair methods of 

competition and it shall be a violation of this code for any member 

of the industry: 

(a) False M easures.-To use slack weights or slack measures, or 

overweights or overmeasures, or to fail to observe any standard of 

weight or of measure adopted by the Code Authority, with the 

ap12roval of the Administrator, as a standard of weight or measure. 

( b) False Adverti,sing.-To publish or disseminate in any manner 

any false advertising of any product of the industry. 

(c) Misbranding.-To brand or mark or pack any product of the 

industry in any manner which is intended to or does deceive purchasers with respect to the brand, grade, quality, quantity, origin, 

size, substance, character, nature, material content, or preparation of 

such product. 

( d) S ecret Rebates.-._ To secretly pay or allow rebates, refunds, 

credits, or unearned discounts, whether in the form of money or 
47 

otherwise; or to secretly extend to certain purchasers special services 

or privileges, not extended to all purchasers under like terms and 

conditions. 

(e) Vnearrned Service PaJJ1nents.-To pay a trade buyer :for a 

special advertising or other distribution service by such buyer (1) 

except in pursuance o:£ a written contract made in good :faith and 

explicitly defining the service to be rendered and the payn1ent for it; 

and (2) unless such service is rendered and such payment is reasonable and not excessive in amount; and (3) unless such contract is 

separate and distinct from any sales contract, and such payment is 

separate and distinct from any sales price and is not designed or 

used to reduce a sales price; and (4) unless such payment is equally 

available for the same service to all competitive trade buyers in the 

same competitive market; and ( 5) unless a copy of each such contract is retained on file for a period of one year. In order to investigate alleged violations of this paragraph, the Administrator may 

require a member of the industry to report such contracts made by 

him and/ or to produce a copy thereof fo-r inspection. 

(f) Oombinmtion Sales.-To require that the purchase of any 

product be prerequisite to the purchase of any other product. 

(g) Oommeroial Bribe7"!f.-To give, permit to be given, or directly 

offer to give, anything of value for the purpose of influencing or 

rewarding the action of any employee, agent, or representative of 

another in relation to the business of the employer of such employee, 

the principal of such agent or the represented party, without the 

knowledge of such employer, principal or party. This paragraph 

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. 

(h) Free De(]Jls.-To grant free deals, whether in the form of 

money, money's worth, or service. . 

(i) False Statements.-To render false invoices, statements of 

account, orders, or acknowledgements; or to falsely report sales, 

whether or not the accounting concerning such sales is accurate. 

(j) Allowances for Olaims.-To allow any claim or make an 

adjustment of an invoice price without obtaining a statement from 

the buyer certifying to the facts on which the claim is made and 

without reporting forthwith to the Code Authority a full statement 

of the details of the settlement. 

(k) Guarantees against Price Declines.-To make a contract for 

future delivery of products of the industry except on one of the 

two following bases: 

(1) On the filed price on the date of quotation or acceptance of 

the contract; or 

(2) On the filed price in effect on the date of shipment. 

(1) Storage Oharges.-To carry oil without having received payment therefor beyond the contract period without invoicing the 

buyer at the rate of six percent (6%) per annum (for the excess 

period of carriage) on the invoice price as compensation for storage 

and delay in payment. 

(m) Annual Sales Staternent.-To :fail to furnish a statement of 

the total annual sales to the accountants selected by the Code Au-
48 

thority as provided for in Article VII, Title A, Section 3, paragraph 

(a), hereof. 

(n) Payment of Assess1nents.-To fail to pay the assessments for 

code administration as provided for in Article VII, Title C, hereof. 

(o) Disparagement of 001npetitors.-To disparage competitors 

by falsely imputing to them dishonorable business conduct, inability 

to perform contracts, questionable credit standing; or to falsely 

represent the grade or quality of their products. 

(p) 001nplwn.ce with Standards and Specifications.-To fail to 

apply the standards and specifications which may be established by 

the Code Authority pursuant to the provisions in Article VII, Title 

B, Section 1, paragraph (k), hereof. 

( q) Filing Prices.-To fail to file with a confidential and disinterested agent of the Code Authority, or if none, then with such 

an agent designated by the Administrator, identified lists of all of 

his price terms, which lists shall completely and accurately conform 

to and represent the individual pricing practices of the member 

filing same. Said price terms shall in the first instance be filecl 

within fifteen days after the approval of this code. Price terms 

and revised price terms shall become effective immediately upon 

receipt thereof by said agent. 

(r) Increased Prices.-To file a higher price within forty-eight 

( 48) hours after having filed a revision in price terms. 

( s) Adherence to Filed Prices.-To sell or offer to sell any products of the industry except in accordance with such price terms 

as filed in accordance with the provisions of Article VI, Section 1, 

paragraph ( q), hereof. 

(t) Agree1nent on Prices.-To enter into any agreement, understanding, combination or conspiracy to fix or maintain price terms, 

or cause or attempt to cause any member of the industry to change 

his price terms by the use of intimidation, coercion, or any other 

influence inconsistent with the maintenance of the free and open 

market which it is the purpose of this Article to create. 

(u) Destructive Price Oidting.-To engage wilfully in destructive price cutting. Any member of the industry or of any othei:t 

industry or the customers of either may at any time complain to the 

Code Authority that any filed price constitutes unfair competition 

as destructive price cutting, imperiling small enterprise or tending 

toward monopoly or the impairment of code wages and working 

conditions. 

(v) E1nergency Basis for Prioes.-To sell below the stated minimum price for any given product when an emergency exists as to 

any such product in accordance with the following provisions: 

(1) If the Adnunistrator, after investigation shall at any time 

find both (a) that an emergency has arisen within the industry 

adversely affecting small enterprises or wages or labor conditions, 

or tending toward monopoly or other acute conditions which tend 

to defeat the purpose of the Act; and (b) that the determination of 

the stated minimum price for a specified product within the industry for a limited period is necessary to mitigatB the conditions constituing such emergency and to effectuate the purposes of the Act, 

the Code Authority may cause an impartial agency to investigate 

costs and to recommend to the Administrator a determination of the 
I 

I_ 

49 

stated minimum price of the product affected by the emergency _an~ 

th_er~upon t~e Administrator may proceed to determine such stated 

muumum pnce; 

(2) When the Administrator shall have determined such stated 

minimum price for a specified product for a stated period, which 

price shall be reasonably calculated to mitigate the conditions of uch 

emergency and to effectuate the purposes of the Act, he shall publish 

such price. Thereafter, durino- such stated period, no member of 

the industry shall sell such specified products at a net realized price 

below said stated minimum price and any such sale shall be deemed 

de tructive price cutting; and provided that 

(3) "\Vhen no declared emergency exists as to any given product, 

there is to be no fixed minimum basi for prices. It is intended 

that sound cost estimating methods should be used and that consideration should be given to costs in the determination of pricing 

policies. 

( w) 0 os,t Finding .-To fail to utilize, to the extent found practicabl~, the cost finding and accounting methods promulgated purnant to Article VII, Title B, Section 1, paragraph (r), hereof. 

No member of the industry shall suggest uniform additions, percentages or differentials or other uniform items of cost which are 

designed to bring about arbitrary uniformity of costs or prices. 

ARTICLE VII-AmnINISTRA TION 

TITLE A. CODE AUTHORITY, SELECTION 

SECTION 1. A Code Authority consisting of five ( 5) voting mem~ 

bers who are to be elected by the industry shall be established to 

administer this code, and to effectuate in the industry the purpo es 

and policies of the Act. The Administrator may appoint from one 

to three nonvoting men1bers o:f the Code Authority as his representatives, for such periods r e·spectively as he shall designat0 , to attend 

all meetings of the Code Authority without expense to the industry. 

The Code Authority shall be elected immediately upon the approval 

of this code at a meeting which may be attended by all members of 

the industry, of which meeting due notice shall be given, and at 

which each member of the industry shall be entitled to one vote 

which may be cast in person, by proxy duly appointed, or by mail. 

SECTION 2. The members of the Code Authority so chosen shall 

continue in office until their successors are duly elected and qualified. 

SECTION 3. For the purposes of this Title, members of the industry 

sh all be classified into three groups in the following manner: 

(a) Each member of the industry shall within sixty (60) days 

after the effective date of this code and during the first ninety (90) 

days of each year thereafter, beginning with January 1, 1935, report 

to such accountants ( certified, chartered, or other lawful practitioners 

of accountancy) as may be selected by the Code Authority the number of tons of processed or refined fi h oil sold by him in the preceding year. Such reports shall be held by said accountants in strict 

confidence except as to the Administrator. On the receipt of such 

r eports, or immediately upon the expiration of the stated period, 

said accountants shall determine from the reports received the aver-
50 

age number of tons per member of such products sold during the 

preceding year and shall then determine the members who are to be 

classified in Group A, being such members who have, as shown by 

their respective reports, sold during the preceding year one hundred 

fifty percent (150% ) or more of such average number of tons; said 

accountants r.:hall also determine the Group B members, being those 

who have, according to their respective reports, sold during the preceding year more than seventy-five percent (75%) but less than one 

hundred fifty percent (150 % ) of such average number of tons; and 

said accountants shall also determine the Group C members, being 

those who have, as shown by their respective reports, sold during 

the preceding year seventy-five percent (75 % ) or less of such average 

number of ton . The determination of such groups by said account~ 

ants shall be final and conclusive ai1cl no person shall have any right 

to investigate or check such determination e2,._"t:ept the Administrator, who may do o either on his own initiative or on the complaint of any member of the industry laiming to be injured thereby. 

SECTION 4. ,V11en and as aid classifications have been made by said 

accountants, they hall report to the members of the industry the 

personnel of the everal groups. ,vithin thirty (30) days after the 

making of each such report, a meeting of the members of the industry shall be held ancl notice thereof shall be given by the Code 

Authority specifying the time and place of each meeting. At such 

meeting Group A members shall as a class, be entitled, to elect two 

of the five ( 5) voting member of the Code Authority; Group B 

hall be entitled, as a clas , to elect one ( 1) of the voting members 

of the Code Authority; and Group C members hall be entitled, as 

a class, to elect the remaining voting member of the Code Authority. 

The four member of the Code Authority o chosen shall select the 

fifth voting member, who shall not be a member of the industry or 

an employee, partner, or officer thereof. A voting member of the 

Code Authority may, but need not, be a· ociated with a 1nember of 

the indu try, but no two (2) members of the Code Authority shall 

be directly a · ociated with the ame member of the industry or any 

of his subsidiarie. or affiliates. 

SECTION 5. If any vacancy shall occur in thi:> membership of the 

Code Authority by rea on of rejection or disapproval of any member 

by the Administrator, or by re ignation or death, or for any other 

reason, the remaining members of the Code Authority, except those 

appointed by the Adm.inistrator, may, by a majority vote of their 

number, appoint a member to the Code Authority for the unexpired 

term, subject however to the approval of uch appointment by the 

Administrator. In filling such vacancies, the representation of the 

respective group ; viz, A, B, and C provided for in Section 4 of this 

Article shall be maintained. 

SECTION 6. The vote in per on, by proxy, or by mail of a majority 

of the members of the industry cla sified in any of said groups shall 

be necessary for the election of the members of the Code Authority 

to be chosen by that group. 

SECTION 7. If the business of any two or more members of the industry is so combined, whether because of r elationship a · sub icliary, 

affiliate or otherwise, as to con titute, in the opinion of the Code 

Authority, one unified enterprise for practical purpo es; then, such 
5i 

members so· combined shall have one vote at meetings of the members of the industry and shall, in classifying such member · into 

Groups A, B , and C, be treated a though constitutin P· one member 

of the industry. n 

SECTION 8. Each trade or industrial association directly or indirectly participating in the selection or a tivities of the CoL1e Authority shall (1) impose no inequitable re -triction on member ·hip, and 

(2) submit to the Administrator true copies of it articles of as ociation, by-laws regulations and all amendments thereto a made, together with such other information as to membership, organization 1 

and activities a the Administrator may deem necessary to effectuate 

the purposes of the Act. 

SECTION 9. In order that the Code Authority shall nt all times 

be truly r epresentative of the industry and in other respect · compl',7· 

with the provisions of the Act, the Aclmini:::itrator may prescrib·e 

such hearings a he may deem proper; and thereafter if he . hall find 

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

other r e pects comply with the provi ions of the Act, may require 

an appropriate modifirntion in the method of selection of the Code 

Authority. 

SECTION 10. Nothing contained in thi. code shall constitute the 

members of the Code Authority partner: for any purpose. Nor 

shall any member of the Code Authority be liable in any mann r to 

anyone for any act of any other member, officer, agent or employee 

of the Code Authority. Nor shall any member of the Code Authority exercising rea onable liligence in the conduct of his duties 

hereunder, be liable to anyone for any action or omission to act 

under this cod~. ex ept for hi own wilful malfea ance or nonfeasance. 

TITLE B. CODE AUTHORITY, POWERS AND DUTIES 

SECTIOX 1. The Code Authority shali be "harged with the administration of the provi ·ions of this code anc1 shall have the following 

powers and duties in addition to those authorized by other provisions of this code, ubject to such rules and regulations a may be 

prescribed by the Administrator : 

(a) T o insure the observance of the provisions of this code, and 

the compliance of the industry ·with the provi ions of the Act. Any 

charge of a specific alleged violation con1ing to the know ledge of a 

member of the industry shall be submitted to the Code Authority 

in a ,vritten statement specifying such all ged violation and containing substantiating evidence thereof. I:f the member submitting 

such charge reque ts that his action in so doing be kept in confidence, 

the Code Authority shall make e...-ery effort to do so, provided that 

such action on its part shall not hind r or obstn1ct the ensuing 

investigation and the enforcement of this code against the member 

charged. 

(b) To investigat any charg 0 aforesaid and any other specific 

charges or information relating to violations of the code which shall 

come to its knowledge from any source which it deems reliable. The 

Code Authority may inve~tigate such matters by calling upon any 

member of the industry, including the one whose action are under 
52 · 

investigation; and may secure from any member of the industry a 

statement with respect to any alleged violation. ( c) To receive complaints from any member of the industry or of 

any other industry or the customers of. either at any time that any 

filed price constitutes unfair competition as destructive price cutting, 

imperiling small enterprises or tending toward monopoly or the impairment of code wages and working conditions. 

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

( e) To obtain from members of the industry such information and 

reports as are required for the administration of this code. I n addi- tion to information required to be submitted to the Code Authority, 

members of the industry shall furnish such statistical information as 

the Administrator may deem necessary for the purposes recited in 

Section 3 (a) of the Act to such Administrative and/ or government 

agencies as the Administrator may designate: Proviiled however, 

that nothing in this code shall relieve any member of the industry 

of any existing obligation to furnish reports to any government 

agency. No individual reports shall be disclosed to any other member of the industry or any other party, except to such government 

agericies as may be directed by the Administrator. 

( f) To use such other agencie as it deems proper for the carrying 

out of any of its activities provided for herein; but nothing herein 

clrnll relieve the Code Authority of its duties or responsibilities under 

this code, and such agencies shall at all times be subject to and comply with the provisions hereof. 

(g) To make recommendations to the Administrator for the coordination of the admini tration of this code with such other codes, 

if any, a may be related to or affect members of the industry. 

(h) To cooperate with the Administrator in regulating the use of 

a.ny N.R.A. insignia solely by those members of the industry who are 

complying with this code. 

(i) To recommend to the Administrator such changes and modifications in thi code as experience shall prove necessary and desirable. 

(j) To establi h, subject to the approval of the Administrator, 

specifications and standards for the classification of various kinds of 

proces ed or r efined fish oils into several grades. 

(k) To require that each member of the industry, in selling or 

promoting the sale of such oil, processed or refined by him, shall 

classify the product in accordance with said specifications and standards when and as the Code Authority shall so establish same; and 

shall comply with the requirements set forth in paragraph (1) of this 

Section and such other regulations as the Administrator may approvP 

in this connection. 

(1) If any member of the industry shall have establi~hed or shall 

desire to establish a special trade name for any particular type or 

grade of oil sold by him which has a peculiar quality or property, 

distinct in any way from any of the established grades, he may 

market such oil under said special trade nam.e or as a separate or 

distinct grade, but, in so doing, shall not make any unfounded or 

misleading statements or claims concerning the properties, characteristics, or capabilities of such branded oil or special grade. Any 

member of the industry who now markets or hereafter proposes to 

market any uch special type of oil shall report the fact to the Code 
• 

53 

Authority, together with a statement of the peculiar properties 

claimed therefor, and if the Code Authority shall find that such 

special oil has no peculiar qualities or capabilities to di tinauish it 

from one of the standard grade established by the Code Authority, 

such membe_r shall not make any tatenients or claim.s to the contrary 

and shall in filing the schedule required of him under paragraph 

( q), Section 1 of Article VI, hereof, clas ify said oil in a.<:cordance 

with th€ standard grade to which it belongs but may continue -to sell 

the oil under the trade name or brand . (m) From and after the time that the Code Authority shall o 

e tabli h pecifications or :Standards for the classification of any kind 

of refined or proce eel oil in the various grades and . hall announce 

, uch clas ifica.tion, each membex of the industry proposino· to sell any 

grade of c::uch kind of oil shall include in the price terms at which 

he propo e to ell any of the established grade , or any ·pecial gra le, 

or any grade hearing a ·pecial trade name a above provided at least 

(1) the price at wluch each grade will be offered in the variou unit 

quantities, e.a ., tank car, lrum, ton, pound, carload lots, or less than 

carload lot; (2) wheth r or not uch price includes any tran portation, handling, or imilar charge to be paid by th 0 eller; ( 3) any 

quantity or other h count· 11 hich will h0 permitted from any of the 

sales prices set forth in . aid schedule, and the amount or extent 

thereof; ( 4) the perio l or perio.ds within which deli Yeries will be 

made at such prices; and ( 5) the term · of credit upon which the 

various grades of oil will be sold. Such report hall be made on such 

form as the Code Authority may find nee ~sary in order that there 

may be a uniform and comparable system 0£ reporting in the 

industry. 

(n) To designate a confidential and di.J interested agent for t he 

purpose of carry:u1g out the provi ·ion of Article VI, S ction 1, paragraph ( q), hereof. Said agent hall receive price terms filed by 

members of the industry in accordance 1Yith Article VI, Section 1, 

paragraph ( q), her of, and immediately upon receipt thereof, said 

agent shall by telegraph or other equally I rompt mean · notify said 

member of the time of such receipt. Such li t s an l revi ·ions, 

together i\·ith the effective time thereof, hall upon receipt be immediately and simultaneou ly di tributed to all members of the industry 

and to all their customers who have applied therefor and have 

offered to defray the co t actually incurred by the Code Authority 

in the prt>paration an] distribution thereof and be aYailable for 

in pection by any of their customers 3.t the oflic of such ag.ent. Said 

li.,t or revi ions or any part thereof shall not be made available to 

any person until relea eel to all members of thB industry and their 

cu tom er.·, as aforesaid; provided, that prices filed in the firc:t instance 

shall not be released until the expiration of the fifteen ( 15) day 

period after th.e approval of this code provided for in Article VI, 

Section 1, paragraph ( q), lrnreof. 

( o) The Code Autl1ority shall maintain a permanent file of all 

price terms filed as herein provided, and shall not des+-roy any part 

of such records except upon written consent of the Administrator. 

pon r€que.,t the Code Authority shall furnish to the Administrator 

or any duly designated agent of the Administrator, copies of any 

such lists or revisions of price terms. 
54 

(p) Upon receipt of a complaint under Article VI, Section 1, 

para.graph (u), hereof, the Code Authority shall within five days 

afford an opportunity to the member of the industry filing the price 

( alleged to constitute destructive price cutting) to answer such complaint and shall within fourteen (14) days make a ruling or adjustment thereon. If such ruling is not concurred in by either party 

to the complaint, all papers shall be referred to the Research and 

Planning Division of the N .R.A. which shall render a report and 

recommendation thereon to the Administrator. 

( q) To recommend from time to time the review or r econsideration of any determination effected under Article VI, Section 1, 

paragraph (v), subparagraph (2), hereof, or the Administrator may 

ca.use the same to be reviewed or reconsidered and appropriate action 

taken. (r) To cau e to be formulated methods of cost finding and accounting capable of use by all members of the industry. \iVhen such 

cost finding and accounting methods shall have been formulated 

same shall ~be submitted to the Administrator for review. I f approved by the Administrator, full information concerning such 

methods shall be made available to all members of the industry. 

Nothing herein contained shall be construed to permit the Code 

Authority to suggest uniform additions, percentages or differentials 

or other uniform items of cost which are designed to bring about 

arbitrary uniformity of costs or of prices. 

SECTION 2. If the Administrator shall at any time determine that 

any action of the Code Authority or any agency thereof may be 

unfair or unj u t 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 the Code Authority or such agency pending final action 

which shall not be effective unless the Admini trator approves or 

unles he shall fail to disapprove after thirty (30) days' notice to 

him of intention to proceed with such action in its original or 

modified form. 

TITLE C. EXPENSES 

SECTION 1. The Code Authority shall, prior to the meeting of the 

member of the industry in each year, fix an estimate or budget of 

its probable financial needs for the administration of this code for 

the ensuing year, and shall submit the same to such 1neeting for 

approval. Unless the budget is revised by such meeting (and it 

shall have that power) the same as determined by the Code Authority shall become effective immediately after its approval by the 

Administrator. When the bud.get has been so determined and approved, the Code Authority shall empower the accountants selected 

by the Code Authority under the provisions of Title A, Section 3, 

paragraph (a) of this Article to apportion the expenses therein set 

forth among the members of ti1e industry, using for this purpose the 

ratio of the annual sales of each member of the industry to the total 

sales of the industry for the preceding year; and after the basis of 

contribution has been approved by the Administrator shall empower 

them to collect the same. Such apportionment and collection of 

expenses among the members of the industry shall be held by such 

accountants in strict confidence except as to the Administrator. 
55 

Such accountants may be ubjected to adequate bond before as:3llming 

any function under the provisions of thi · Title. 

8'ECTION 2. If the Code Authority shall at ~ny time deem that extraordinary expen. e · should be incurred by it in the performance of 

its functions hereunder, it shall thereupon estimate the amount 

thereof and , ubmit the same to a meeting of the members of the industry for approval, revision or rej ection. The notice of c_ny such 

meeting shall specify the purpose thereof, and the nature and amount 

of the requested appropriation. If su h meeting i:s so called and 

shall, either for a lack of quorum or otherwi~·e, fail to r evise or reject the .request of the Code Authority, the action of the Code Authority shall then be final and conclusive a· tu members of the 

industry. Such proposed extraordinary bndget shall be , ubject to 

the approval of the .... dministrator in any event. Assessments on the 

members of the industry shall then be apportioned by ·aid accountants on the same basis as specified in Section 1 of this Title, and, 

after the basi.s of contribution has been approved by the .... \.clministrator, collected in like manner. 

SECTION 3. Any funds remaining on hand, upon the termination 

of this code or at the discretion of the Code Authority, shall, after 

the liabilities of the Code Authority have be.en paid, be prorated 

and returned to the members of the jndustry by aid accountants 

in accordance with such recognized principles of accountancy as will 

allow due con icleration t o their respective contribution to suc.h 

balance. 

AnTI"'LE VIII-1\fo.i: OPOLIEs 

SECTION 1. No provj,sion of this code shall be so applied as to 

permit monopolies or monopolistic practic 0 s, or to eliminate, oppress, 

or di..;criminate against small enterprises. 

ARTICLE IX-~(10DIFICATION 

SECTION 1. It is contemplated that from time to time amendments 

will be submitte l for the approval of the President, to effectuate the 

policies of the Act and to prevent unfair competition. Aftm· such 

notice and hearings as the Administrator shall pecify, and with 

the approval of the President, the propo eel amendments shall become parts of this code. SECTION 2. This code and all the provi ion thereof are expre ·sly 

made subject to the right of the Presid nt., in accordance with the 

provisions o.f Section 10, subsection (b) of the Act, from time to time 

to cancel or modify any order, approval, license, rule, or regulation issued under the Act; and specifica,lly, but without limitation, 

to the right of the Pre ident to cancel or modify hi approval of this 

cocle or any conditions imposed by him upon his approval thereof. 

ARTICLE X-EFFECTIVE DATE 

SECTION 1. This code shall become effective on the second 1'.Ionday 

following its approval by the President. 

Approved Code No. 500. 

Registry No. 612-01. 

0 
UNIVERSITY OF FLORIDA 

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