Approved Code No. 551 Registry No. 1208-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CLOCK MANUFACTURING 

INDUSTRY 

AS APPROVED ON FEBRUARY 26, 1935 

. -· .. _ I A \1 -~ -; ,. ...... 

u.s. oePOM101W 

UNITED STATES 

GOVERNM.ENT PRINTING OFFICE 

WASHINGTON: 1935 

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Approved Code No. 551 

CODE OF FAIR COMPETITION 

FOR THE 

CLOCK MANUFACTURING INDUSTRY 

As Approved on February 26, 1935 

ORDER 

APPROVING CoDE oF FAIR CoMPETITION F R THE CLOCK MANUFACTURING INDUSTRY 

An application having been duly 1nade pur uant 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 Clock Manufacturing Industry, and hearing having been duly held thereon and the annexed report on said 

Code, containing findings with r e pect thereto, having been made 

and directed to the President: 

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

States, the National Industrial Recovery Board, pur uant to authority vested in it by Executive Orders of the President, including 

Executive Order No. 6859, dated September 27th, 1934, and otherwise; does hereby incorporate by reference said annexed report and 

does find that aid Code cmnplies in all respects ·with the pertinent 

provisions and will promote the policy and purpo es of said Title 

of said Act; and does hereby order that said Code of Fair Competition be and it is hereby approved; and provided further that within 

ninety days said Board may direct that there be a further hearin~ 

on such of the provisions of aid Code as it may de ignate, and that 

any order which it may make after such hearing shall have the 

effect of a condition on the approval of said Code. 

NATIONAL INDUSTRIAL RECOVERY BoARD, 

By W. A. HARRIMAN, Ad1ninistrative Officer. 

Appr val recommended: 

WALTER G. HooKE, 

Actilng Division Awrninistrator. 

VVA HI "GTON, D. c., 

February t£6, 1935. 

117 38 °----1603- 23----35 (119) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White Ho'use. 

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

Clock Manufacturing Industry, the hearing having been conducted 

in Washington on January 24, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. This 

association claims to represent eighty-five percent of the Industry. 

HOURS 

This Code provides that factory employee· shall not be employed 

for more than forty ( 40) hours in any one ( 1) week nor eight ( 8) 

hours in any one (1) clay nor six (6) days in any seven (7) clay 

period. An exception is granted to the above limitations for twelve 

(12) weeks in any one (1) calendar year during which time employees 

may work forty-five (45) hours in any one (1) week but not more 

than nine (9) hours in any twenty-four (24) hour period. 

Clerical and office employees receiving less than thirty-five dollars 

($35.00) per week shall not be employed for more than forty ( 40) 

hours in any one (1) week. An exception is granted to the above 

limitations whereby during any twelve (12) weeks in any one calendar year clerical and office employees may lJe permitted to work 

forty-five ( 45) hours in any one (1) week. 

These standard provision do not apply to executive, administrative and supervi ory employee who receive thirty-five dollars 

($35.00) or more per week, nor to watchmen who may be permitted 

to work fifty-six (56) hours per week, but not more than ix ( 6) days 

in any seven (7) day period, nor to employees engaged in preparation, care and maintenance of plant and machinery and facilities 

of and for production who shall not be permitted to work more than 

forty-five (45) hours in any one (1) week, nine (9) hours in any 

twenty-four (24) hour period, nor six (6) days in any one (1) week, 

except in ca e of breakdowns and emero·encies and the extra hours 

of work shall be reported to the Code Authority. These employees 

shall be paid one and one-third (11j3 ) times their normal rate for 

all hours worked in excess of the above limitations, and they shall 

be limited to five percent ( 5% ) of all employees. 

WAGES 

The minimum rate of pay is e -tablished at thirty-seven and onehalf cents (37lj2 ¢) per hour for male employees and thirty-two and 

one-half cents (321!2¢) per hour for female employees. 

Learners are defined as employees who prior to their employment as such have Rot previously worked in the Industry in excess 

(120) 
121 

of two (2) months. Such learners shall be paid not less than thirtytwo and one-half cents (321j2 ¢) per hour and the number of such 

1 arners shall not exceed in any calendar month five percent ( 5%) 

of the total number of employees. Employees shall not be so 

cla ified in exces to two (2) months. 

The minimum_ rates establi hed for clerical and office employees 

are fifteen dollars ($15.00) per week in cities of over 500,000 population or in the immediate trade area of such city, and not less than 

fourteen dollars ($14.00) per week elsewhere. An exception to the 

above minimmn rate is granted for office and errand boys who may 

be paid not less than eighty percent (80% ) of said minimum rate, 

providina that the total number of such office and errand boys 

shall not exceed five percent ( 5%) of the total number of employees. 

ECONOMIC EFFECTS OF THE OODE 

The Clock Manufacturing Industry has suffered most severely 

during the depression, however, in spite of their depres ive condition they have rehabilitated the Industry to a certain extent by 

Yoluntarily adopting the Code submitted to the Administration 

early in August 1933. The voluntary application of this unapproved Code upon the Industry has increased the employment approximately thirty-nine percent (39%) over the number of employees for the year 1932 ~ and has increased the factory payrolls 

approximately seventy-two percent (72<!~) during the arne period. 

FINDINGS 

The Assistant Deputy Administrator in his final report to us on 

said Code having found as herein set forth and on the basis of all 

ihe proceedings in this matter: 

'iV e find that : 

(a) Said Code is well de igned to promote the policie and purposes of Title I of the National Industrial Recovery Act, including 

removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and management 

under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the pre ent productive capacity of indu tries, by 

avoiding undue re triction of production (except as may be temporarily required) by increasing the consumption of inclu trial and 

agri ultural products through increasing purchasing power by 

reducing and relieving unemployment, by improving tandards of 

labor, and by otherwise rehabilitating indu try. 

(b) Said Indu try normally em ploy not more than 50,000 

employes ; and is not cla ified by u as a major indu -try. 

(c) The Code as approved complies in all re pects with the pertinent provi ions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7 and 

Subsection (b ) of Section 10 thereof; and that the ftpplicant associa-
122 

tion is an industrial association truly representative of the aforesaid Indu try; 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 entarpri e and will not operate to discriminate against them. 

(f) Tho e 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, the National Industrial Recovery 

Board has approved this Code. 

For the National Industrial Recovery Board: 

FEBRUARY 26, 1935. 

-vv. A. HARRIMAN, 

Administrative Officer. 
CODE OF FAIR COMPETITION FOR THE CLOCK MANU· 

FACTURING INDUSTRY 

ARTICLE I-PURPOSES 

To effect the policies of Title I of the National Industrial Recovery 

Act, this Code is established as a Code of Fair Competition for the 

Clock Manufacturing Industry and its provisions shall be the standards of fair competition for such industry and shall be binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term" Industry" as used herein includes the business of producing and selling, by th~ producer in the United States, 

clocks, timing mechanisms, clock-driven time switches sold to serve 

the dual purpose of clocks and switches, and watches having less 

than seven jewels or parts thereof, and such branches or subdivisions 

thereof as may from time to time be included under the provi ions 

of this Code, except where such article is made or used by the producer as a part of any article other than those mentioned herein and 

included under some other code approved by the President. 

SECTION 2. The term " Employee" as used herein includes any and 

all persons engaged in the Indu try however compen ated, except 

a member of the Industry. 

SECTION 3. The term "Employer" as used herein includes anyone 

by whom such employee is compensated or employed. 

SECTION 4. The term "l\1ember of the Indu try" means and include any person, firm, partnership, association, corporation, tru tee, 

or receiver operating a plant or plants in the United States for 

the production of the articles covered in Article II, Section 1 hereof, 

except where any of the foregoing manufacture such articles to be 

made or used by the producer as a part of any article other than 

those mentioned in Section 1 and included under some other code approved by the President. 

SECTION 5. The terms "President", "Act ", and "Board" as used 

herein mean respectively the President of the United States, the 

National Industry Recovery Act, and the National Indu trial Recovery Board. 

ARTICLE III-HoURs 

SECTION 1. No factory employee shall be permitted to work more 

than forty ( 40) hou~s per week or more than eight ( 8) hours in any 

twenty-four (24) hour period or more than six ( 6) days in any seven 

(7) day period, except during twelve (12) weeks in any one calendar 

year entployee n1.ay :work forty-five ( 45) hours in any one week, 

but not more than n1ne (9) hours in any twenty-four (24) hour 

period. 

(123) 
124 

SECTION 2. No person employed in office or clerical work, receiving 

less than thirty-five dollars ($35.00) per week, shall be permitted 

to work in excess o:f forty ( 40) hours ·per week, except that during 

any twelve (12) weeks in any one calendar year they may be permitted to work forty-five (45) hours in any one week. 

(a) The provisions of Sections 1 and 2 of this Article shall not 

apply to the following: 

(1) Executive, administrative and supervisory en1ployees, outside 

salesmen and outside service men, who receive thirty-five dollars 

($35.00) or more per week. 

(2) Watchmen may be permitted to work a maximum of fifty-six 

(56) hours per week, but no watchman shall be permitted to work 

more than six (6) days in any seven (7) day period. 

(3) Employees engaged in the preparation, care and maintenance 

of plant and machinery and facilities of and for production shall 

not be permitted to work more than forty-five ( 45) hours in any 

one (1) week, or nine (9) hours in any twenty-four (24) hour period, 

nor more than six (6) days in any one (1) week, except in the case of 

breakdowns and emergencies, in which event the nature of the 

breakdowns or emergencies and the extra hours worked shall be 

reported to the Code Authority. Such employees shall be paid at 

one and one-third (11/3 ) ti1nes their normal hourly rate for all hours 

worked in excess of the above limitations. This paragraph shall 

apply at no time to more than five per cent ( 5%) of all employees. SECTION. 3. No employer shall knowingly permit any employee 

to work for any time which, when added to the time spent at work 

for another employer or employers in this Industry or other 

Industries, exceeds the maximum permitted herein. 

ARTICLE IV-WAGES 

· SECTION. 1. No male employee shall be paid in any pay period 

less than at the rate of thirty-seven and one-half cents (371j2 ¢) per 

hour, and no f emale employee shall be paid in any pay period less 

than at the rate of thirty-two and one-half cents (321j2 ¢) per hour, 

except as otherwise herein provided. 

SECTION 2. Learners shall be paid not less than at the rate of 

thirty-two and one-half cents (321j2¢) per hour. The total number 

of such learners shall not exceed in any calendar month five per 

cent ( 5%) of the total number of employees covered by the provisions of this Article. 

Learners are defined as those employees who, prior to their employment as learners shall not have previously worked in the In- dustry for a period in excess of two · (2) months, neither may such 

employees be classified as learners by the employer by whom they 

are employed for a period in excess of two (2) months. 

SEcTION 3. A person may be employed as an apprentice by any 

member of the Industry at a wage lower than the minimum wage, 

or for any time in excess of the maximum hours crf labor, estab- lished in this Code, if such member shall have first obtained from 

an Agency to be designated or established by the Secretary of 

Labor, a certificate permitting such person to be employed in conformity with a training program approved by such Agency, until 

and unless such certificate is revoked. 
125 

(a) The term "Apprentice", as used herein shall mean a person 

of at least 16 years of age who has entered into a written contract 

with an employer or an a sociation of employers which provides 

for at least 2,000 hours of reasonably continuous employment for 

such person and his participation in an approved program of training as hereinabove provided. 

SECTION 4. A per on whose earning capacity is limited becau e 

of age, 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 ~bo r, a certificate au- thorizing such person's employment at such wag and for uch hours 

as shall be stated in the certificat e. Such authority shall be guided 

by the instruction 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 per ons employed 

·by him, showing the wages paid to, and the maximum hours of 

work for such employees. 

SECTION 5. Office and clerical employees shall be paid not le s 

than at the rate of fifteen dollars ($15.00) per week in cities of over 

500,000 population or in the immediate trade area of such city, and 

not less than fourteen dollars ($14.00) per week elsewhere, excepting office and errand boys who may be paid not less than eighty 

p€r cent (80% ) of said minimum wage. The total number of such 

office and errand boys shall not exceed five p€r cent (5 % ) of the 

total number of employees. 

SECTION 6. An equitable adjustment shall also be made of compensation in excess of such minimum rate by all members of the Industry who have not heretofore made such an equitable adjustment 

and within sixty (60) days of the effective date hereof each employer shall report to the Code Authority, for ubmission to the 

Board, the action taken by such employer in pursuance of this provision, provided, however, that in malting aid adjustments within 

said sixty ( 60) days, hourly, weekly or piece work r ates shall not 

be reduced. SECTION 7. In cases of employ€es performing work for which they 

are paid per piece of work performed, the employer shall make up the 

deficiency in pay if the amount is less than could be obtained by the 

use of the minimum hourly rate over the pay p€riocl. 

SECTION 8. F emale employee performing the same work as male 

employees hall receive the same rate of pay a male employees. 

SEcTION 9. \Vages shall be paid at least emi-monthly in lawful 

currency or by negotiable check, payable on demand. These wages 

shall be exempt from any payments, pensions, insurance, or ick 

benefits other than those voluntarily paid by the wage earner or 

required by law. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. (a) No per on under sixteen ( 16) year of age shall 

be employed in the Industry. 

· (b) No person under eighteen ( 18) years of age hall be employed 

in occupations hazardous in nature or dangerous to health. In any 

State an employer shall be deemed to have complied with this pro-
126 

vision as to age if he shall have on file a certificate or permit, duly 

signed by the Authority in such State empowered to issue employ- ment or age certificates or permits, showing that the employee is 

of the required age. Within sixty (60) days after the approval of 

this Code, the Code Authority shall submit to the Board for ap- proval a list of such operations and occupations. 

SECTION 2. It is hereby provided: 

(a) That 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 activites for the purpose 

of collective bargaining or other mutual aid or protection. 

(b) That 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 as isting a labor organization of his own choosing, and 

(c) That em.ployers hall comply with the maximum hours of 

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

approved or prescribe_d by th_e President. 

SECTION 3. No employer hall recla · ify employees or duties of 

occupations performed or engage in any ubterfuge so as to defeat 

the purposes of the provisions of the A.ct or of this Code. 

SECTION 4. 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 Board for approval within three (3) months 

after the effective date of the Code. 

SECTION 5. No provision in this Code shall super ede any State 

or Federal law which imposes upon employers more stringent requirements as to age of employees, wages, hours of work, or as to 

safety, health, sanitary or general working conditions, or insurance, 

or fire protection, than are imposed by this Code. SEcTION 6. Within ten (10) days of the effective date each employer 

shall post, and thereafter maintain, in conspicuous places accessible 

to employees full copies of this Code and any amendments or modi- fica.tions which may later be approved. Every member of the 

Indu try shall -comply with :tll rules and regulations relative to the 

posting of provisions of the Code which may from time to time be 

prescribed by the Board. SECTION 7. (1) A per on may be permitted to engage in homework 

at the same rate of wages as is paid for the same type of work performed in the factory or other regular place of business if a certificate i obtained from the State Authority or other officer designated 

by the United States Department of Labor, such certificate to be 

granted in accordance with in truct.ions issued by the United States 

Department of Labor, provided 

(a) Such person is physically in.capacitated for 1\ork in a factory 

or other regular place of busines and is free from any contagious 

disease, or . . (b) Such person i? unable to leave home because l11s or. her se-:v1ces 

are absolutely essential for attendance on a person who 1s bednd.den 

or an invalid and both such persons are free from any contagwus 

disease. 
127 

(2) Any employer engaging such a per on shall keep ..,uch certificate on file and shall file with the Code Authority for the industry 

the name and address of each worker so certificated. 

SECTION 8. No employer shall dismi s or demote any employee for 

making a complaint or giving evidence with respect to an alleged 

violation of the provi ions of this Code. 

ARTICLE VI- AmHINISTRATION 

SECTION 1. A Code Authority is hereby e tabli heel to cooperate 

with the Board in the administration of thi Code and hall consist 

of five (5) individuals, selected by the members of the Indu try in 

the manner her inafter provided to serve for a period of one year or 

until their ucce sors are chosen. The Board, in its di cretion, may 

appoint not more than three (3) additional members, without vote, 

to represent the Board. These three members shall serve without 

compen ation from the Indu try. 

SECTION 2. The selection of the five individuals constituting the 

Code Authority shall be n1.ade by the method of voting as provided 

in Section 3 of this Article. 

SECTION 3. Only members of the Industry complying with the provisions of this Co<Je and paying their a se sment ( unle s otherwi e 

exempted) if levied in accordance with a basis of assessment to be 

approved by the Board are to participate in the benefits and selection of the Code Authority and such members shall ba entitled to vote 

for the member of the Code Authority in the following manner, 

to be computed on the basis of such member's net annual dollar sales 

of the products of this industry for the previous calendar year as 

follows: 

1 Vote for each $50;000 or fraction thereof, up to $1,000,000 

and 

1 Additional Vote for each $100,000 or fraction thereof, from 

$1,000,000 to $2,000,000 and 

1 additional Vote for each $200,000 or fraction thereof, in 

excess of $2,000,000 

provided, further, that at uch election of the members of the Code 

Authority two or more of the four members of the Industry having 

the greate t number of vote , when voting together, shall not cast 

a majority vote, unle~ one or more members of the industry having 

the right to cast at least ten (10) per cent of the total votes and 

not incl11cled among aid four, shall vote with them. 

All que tion as to the number of votes which each member hall 

be entitle l to ca t at a meeting of the members of the Indu try to 

elect a Code Authority shall be determined by the Secretary, as 

provided above. Any member of the Industry may vote by proxy 

in writing dulv executed by such member of the Industry and filed 

with the Secretary. Any such proxy may be for such elections or 

be a general proxy for such elections that may be held until such 

proxy shall have been revoked in writing duly executed by the 

member, who gave such proxy, and filed with the Secretary. 

SECTION 4. At each election of the Code Authority, members of 

the Indu try having the right to cast at lea t seventy-five per cent 

(75 %) of all the votes that might be cast at such election, if all the 
128 

members were present thereat, shall constitute a quorum for the 

tran action of business at such election. 

SECTION 5. Vacancies in the personnel of the Code Authority 

selected by the Industry shall be filled by the remaining members 

of the Code Authority subject to the approval of the Board. 

SEcTION 6. Each trade or industrial association directly or indirectly participating in the activities of the Code Authority hall 

impose no inequitable restriction on membership and shall ubmit 

to the Board true copies of its articles of association, by-laws, regulations, and any amendments when 1nade thereto, together with 

such other information as to 1nember hips, organization, and activties as the Board may deem nece ary to effnctuate the purposes 

of the Act. · 

SECTION 7. 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 Board may prescribe such hearings as it may deem proper; and thereafter if it shall find the Code 

Authority is not truly representative or it does not in other respects 

comply with the provisions of the Act may require an appropriate 

modification of the Code Authority. 

SECTION 8. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purposes. Nor 

shall any member of the Code Authority be liable in any manner to 

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

or en1ployee of the Code Authority. Nor shall any member of the 

Code Authority, exercising reasonable diligence in the conduct of 

his duties hereunder, be liable to anyone for any action or omission 

to act under this Code, except for his own wilful malfeasance or 

nonfeasance. 

SECTION 9. If the Board shall at any time determine that any 

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

unjust or contrary to the public interest, the Board 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 Board approves or unless it shall fail to disapprove after thirty (30) days notice to it of intention to proceed 

with such action in its original or modified form. 

SECTION 10. The Clock :Manufacturing Industry Code Authority 

may incorporate under the laws of any State of the United States 

or of the District of Columbia, or may assume or adopt such existing 

corporate form under any of such laws as it may deem appropriate 

for the proper performance, as and from the effective date, of its 

activities, powers and dutie hereunder, such corporation or corporate form to be not for profit and to be known as the Clock Manufacturing Indu try Code Authority, Incorporated; provided that 

the powers dutie , objects and purpose of the said corporation 

shall, to the satisfa ction of the Board be limited to the I owers, duties, 

objects and purpos s of the Clock Thfanufacturing Industry Code 

Authority as provided in this Code; provided, further, that the existence of the said corporation shall be during the term of the Code; 

and provided, further, that the Code Authority shall submit to the 

Board for its approval, its proposed Certificate of Incorporation and 
129 

proposed By-Laws, and no amendment o£ either shall be made without the like prior approval o£ the Board ancl provided, further, that 

the Code Authority shall submit, w.ith its proposed Certificate of 

Incorporation and By-Laws, the written opinion of an attorney-at- law qualified in and conversant with the laws of the jurisdiction in 

which the Code Authority seek to be incorporated, as to the nature 

and extent of the jurisdiction, power ~ and authorities exercisable by 

the State in question and its agencies over the activities of the Code 

Authority as a corporation, upporting such opinion by citation 

o£ relevant authorities, and supplementing the same with a table, 

certified to be complete, o£ all laws, statutes ancl other regulatory 

provision governing corporations created pursuant to the laws under which the Code Authority , eeks to be incorporat d. 

I£ at any time, the Board shall determine that the corporate 

status assumed by the Code Authority is interfering with the proper 

exercise of its powers and duties under this Code, or with the effectuation o£ the policies or purpo ·es o£ the Act, it may, after such no6ce 

and hearing as it may deem necessary require an appropriate modification of the structure o£ the Corporation, ( i£ con istent with the 

law o£ the State o£ Incorporation), the substitution o£ a corporation 

created under the laws o£ another State in the same manner as the 

e:xisting Code Authority, the substitution o£ a non-corporate Code 

Authority truly representative o£ the Industry or such other actions 

as it may deem expedient. SECTION 11. Subject to such rules and regulations as may be issued 

by the National Industrial Recovery Board the Code Authority shall 

have the following powers and duties, in addition to tho e authorized 

by other provisions o£ this Code : 

(a) To insure the execution o£ the provisions o£ this Code and 

to provide for the compliance o£ the Industry with the provisions 

o£ the Act. 

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

(c) To obtain from members o£ the Industry such in£orm_ation 

and reports as are required for the administration o£ the Code. 

In addition to information required to be ubmitted to the Code 

Authority, members o£ the Industry shall furnish such statistical 

jn£ormation as the Board may deem necessary for the purposes recited in Section 3 (a) of the Act to such Federal and State agencies 

as it may designate; provided that nothing in this Code shall relieve 

any member of the Industry of any existing obligations to furnish 

reports to any government agency. The Code Authority may require 

that any or all information be sworn to or otherwi e certified or 

authenticated as it may prescribe. 

The information furnished to the Secretary upon reque t of the 

Code Authority shall be subject to check for the purposes o£ verification, to the extent permitted by the Act. Such checking, when 

necessary, shall be done by certified, registered, chartered, or any 

other lawful practitioner of public accountancy designated by th ~ 

Code Authority, the cost of which examination shall be cleared as 

an expense o£ administering· the Code. 

Any information furnished to the Secretary of the Code Authority 

by a member of the Industry in accordance with the provisions o£ 

the Code, hich is considered o£ a confidential character by the said 
130 

member, shall be treated by the Secretary as confidential, and no 

disclosure thereof to the Code Authority or to anyone, except t·o the 

Board in any manner shall be made other than in combination with 

similar information furnished by other members of the Industry, in 

which case the publication shall be made only in such manner as will 

avoid the disclosing separately of such confidential infonnation. 

Information shall not be furnished to anyone by the Secretary except by direction of the Code Authority. 

(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 recom.mendations to the Board for the coordination 

of the administration of this Code with such other codes, if any, as 

may be related to the Industry. 

(f) 1. It being found necessary in order to support the administration of this Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, 

the Code Authority is authorized: 

(a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes, and to meet such obligations 

out of funds which may be raised as hereinafter provided and 

which shall be held in trust for the purposes of the Code; 

(b) To submit to the Board for its approval, subject to such 

notice and opportunity to be heard as it 1nay deem necessary 

(1) an itemized budget of its estimated expenses for the foregoing purposes, and (2) an equitable basis upon which the 

funds necessary to support such budget shall be contributed by 

members of the Industry; 

(c) 'After such budget and basis of contribution have been 

approved by the Board, to determine and obtain equitable contribution as above set forth by all members of the Industry, 

and to that end, if necessary, to institute legal proceedings 

therefor in its own name. 

2. Each member of the Industry shall pay his or its equitable 

contribution to the expenses of the maintenance of the Code Authority, determined as hereinabove provided, and subject to rules and 

regulations pertaining thereto issued by the Board. Only members 

of the Industry cmnplying with the Code and contributing to the 

expenses of its administration as hereinabove provided, shall be 

entitled to participate in the selection of members of the Code 

Authority or to receive the benefits of any of its voluntary activities 

or to make use of any emblem or insignia of the National Recovery 

Administration. 

3. The Code Authority shall neither incur nor pay any obligation 

substantially in excess of the amount thereof as estimated in its 

approved budget, except upon approval of the Board; and no subsequent budget shall contain any deficiency item for expenditures in 

excess of prior budget estimates except those which the Board shall 

have so approved. 

(g) To recommend to the Board any action or measures deemed 

advisable, including further fair trade practice provisions to govern 
131 

members of the Indu try in their relations with each other or with 

other Indu trie ; measures for industrial planning, and tabilization 

of mplo ment · and including modification of this Code, which 

shall b come effective as part hereof upon approval by the Board 

after such notice and hearing as it rna spe ify. ' 

(h) To appoint a Trade Practice Committee which shall meet 

with the Trade Practice Committee appointe l under uch other 

code as may be related to the Industry for the purpo e of formulating fair trade pra ti to govern the relation hip between employer under this Code and under su h other code to the end that 

uch fair trade practice may be propo eel to the Board as 

amendment to thi Code and such other codes. 

ARTI LE VII-UNFAIR TRADE PRACTICE 

On and after the effective date of this Code, the following practices 

are hereby d-eclared to be unfair method of competition and violation of this Code : 

SECTION 1. No member of the Indu try shall give, permit to be 

given, or directly offer to give, an:5 thin <Y of \alue for the purpose of 

influencing or rewarding the action of any employee agent or repre entative of another in relation to the bu ine of the emplo rer of 

uch employee, the principal of uch agent or the repre ented party, 

without the knowledge of uch emplo ' r, principal or part . Commercial bribery proYi ion hall not be con trued to prohibit free 

and general di tribution of arti les commonly u eel for a l erti ing 

except so far as such article are actually tLed for commercial bribery 

as hereinabo\e defined. 

SECTION 2. No member of the Indu try hall ecretl r offer to 

make an payment or allowance of a rebate refund commi ion, 

credit, unearned eli count, or exce allowance, whether in the form 

of money or otherwi e, nor hall a member of the Industry ecretly 

offer to extend to an cu tamer any pecial ervice or privilege not 

exten led to all cu tom rs of the same cla s for the purpose of 

influencing a ale. 

SE TION 3. Rendering or offering any \aluable consideration to 

any purcha er pro pective purcha er, or dealer unle s fair compen ation be paid therefor b} uch purcha . r, pro pecti' e purchaser or 

dealer. This i not intended to prohibit a m mber suppl} ing his 

own adverti ing matter to the general trade. SECTIO~ 4. ~laking a conce ion in the price of any product, dir ectly or indirectly, under the guise of an ad ertising allowance. 

SE TION 5. Datino· of invoices more than five (5) working days 

after date of hipment. SECTIOK 6. No member of the Indu try hall ship goods on consianment except under ircum tances to be defined by the Code 

A~1thority, and approved by the National Indu trial Recovery 

Boar l, where peculiar circumstances of the Industry requires the 

practice. This provision doe not prohibit the return of merchandi e 

on condition specified by the Code Authority, for valid reasons, 

subject to the approval of the National Industrial Recovery Board. 

SECTION 7. }\laking any r ebates to purchaser against stocks on 

hand in the event of decline in prices, except within such limitations 
132 llllllllll~~~~~~l~l~l'fllill~ II IIIII \1\1[1 ~~~ 111111111 

3 1262 08582 8316 

as may be specified by the Code Authority, after approval by the 

National Industrial Recovery Board. 

ARTICLE VIII-MoDIFICATION 

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

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

provisions of Subsection (b) of Section 10 of the National Industrial Recovery Act, from time, to time, to cancel or modify any 

order, approval, license, rule or regulation issued under Title I of 

said Act. 

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

Act, may be modified or amended on the basis of experience or 

changes in circumstances, such modifications or amendments to be 

based upon application to the National Industrial Recovery Board 

and after such notice and hearing as it shall specify, to become 

effective on approval of the President unless otherwise provided. 

SECTION 3. The Code Authority may make recommendations for 

modification of this Code to theN ational Industrial Recovery Board 

which shall become effective as a part of this Code upon approval by 

the National Industrial Recovery Board after such notice and hearing as it may prescribe. 

ARTICLE IX-~1oNOPLms, ETa. 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress or discriminate against small enterprises. 

ARTICLE X-EFFECTIVE DATE 

This Code shall become effective on the third Monday after its 

approval by the President. 

Approved Code No. 551. 

Registry No. 1208-01. 

0