Approved Code No. 510 Registry No. 1208-07 

NATIONAL RECOVERY ADl\fiNISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ASSEMBLED \VATCH 

INDUSTRY 

AS APPROVED ON AUGUST 27, 1934 

1 At.' 0--• ........... 

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s.oe~ 

I l I 

UNIT ED STAlES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For s ale by the Superinte ndent of Documen ts, Washington, D .C. 

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Price 5 cents 
This publi<'ation is for sale by the Superiuteudeut of Documents, Government 

Printiug Office, Waslliugton, D.C., and by district offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birminglwm, Ala.: 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

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

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

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, 1\lich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 F ederal Building. 

Memphis, Tenn. : 229 Federal Building. 

Mitmeapolis, Minn.: 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 Bast Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg. : 215 Ne\V Post Office Building. 

St. Louis, l\lo.: 506 Olive Street. 

Sun Francisco, Calif. : 310 Customhou sP . .. Seattle, Wash.: 809 Federal Office Building . 

........ ,. - .· 
Approved Code No. 510 

CODE OF FAIR COMPETITION 

FOR THE 

ASSEl\1BLED 'VATCH I~"'DUSTRY 

As Approved on August 27, 1934 

ORDER 

APPROVING CoDE OF FAIR CoMPETITION FOR THE AssEMBLED \¥" ATCH 

INDUSTRY 

An application having be.en duly made fursuant to and in full · compliance with the provisions of Title I o the National Industrial 

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

Fair Competition for the Assembled Watch Industry, and hearing 

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

containing findings with respect thereto, having been duly made nncl 

directed to the President: 

NO"T, THEREFORE, on behalf of the President of the United 

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

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Code complies in all respects 

with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code 

of Fair Competition be and it is hereby approved; provided, however, that the following changes be. and the same hereby are made: 

(1) That Section 9, Article VIII be deleted and in lieu thereof 

the following paragraph be, and it is hereby inserted: 

"No member of the Industry shall permit the return of any watch 

or watch movement after 60 days from the date of invoice, except 

for defects of material or workmanship." 

(2) That Section 14, Article VIII be amended to read as follows: 

"No member of the Industry shall attempt to induce the breach 

of an existing contract between a competitor and his customer or 

source of supply; nor shall any such member interfere with or ob- struct the performance of such contractual duties or services." 

(3) That Section 2, Article III be amended to read as follows: 

"No m-ember of the Industry shall employ. or cause to be employed, office or clerical employees for more than forty ( 40) hours 

per week, averaged over any five ( 5) weeks' period, provided that 

82943°----104±-132----34 (21) 
22 

no such employee shall be employed more than forty-eight (48) 

hours in any one week." 

and provided further that within ninety days I may direct that 

there be a further hearing on such of the provisions of said Code 

as I may designate, and that any order which I may make after 

such hearing shall have the effect of a condition on the approval of 

said Code. 

HuGH S. JoHNSON, 

Administratm· for Industrial Recovery. 

Approval recommended: 

JosEPH F. BATTLEY, 

Acting Divuion Administrator. 

WASHINGTON, D.C., 

August 27, 1931r 
REPORT TO THE PRESIDENT 

THE PRESIDENT' 

The White H ov_.<,e. 

Srn: This is a report on the Code of Fair Compe,tition for the 

Assembled Watch Industry, the hearing havin~ been conducted in 

'V ashington on March 15, 1934, in accordance w1th the provisions of 

Title I of the National Industrial Recovery Act. The sponsoring 

association claims to represent 50% of the members of the Industry, 

whose members do 80% of the total volun1e of business in the 

Industry. 

HOURS AXD WAGES 

This Code provides that no employee shall work more than forty 

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

any twenty-four (24) hour period nor more than six (6) days in 

any seven (7) day peri·od, except during peak periods. During the 

months of September, 09tober, November and December employees 

may be permitted to work not to exceed more than forty-eight (48) 

hours in any one (1) week provided further, that such employees 

shall receive at least one and one-half (11j2 ) times their respective 

rates of pay for overtim_e in excess of forty ( 40) hours in any one 

( 1) week. Office and clerical employees may work not more than 

forty ( 40) hours per week averaged over a period of three ( 3) 

months, provided further that such employees shall not be employed 

more than forty-eight (48) hours in any one (1) week and that no 

hours worked by such employees shall exceed five hundred twenty 

(520) hours in any thirteen (13) weeks period. Exception is made 

to those in a managerial or executive capacity who earn thirty-five 

($35.00) dollars or more per week, and to traveling salesmen. The 

minimum rate of pay for all employees is forty ( 40¢) cents per 

hour except for learners and office boys and girls, who shall receive 

80% of the minimum. Office and clerical employees shall be paid 

not less than fourteen ($14.00) dollars per week. 

FINDINGS 

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

having found as herein set forth and on the basis of ali th.e 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 Industrial Recovery Act, including 

r emoval 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 cooperr~ tive action among trade groups, 

_(23) 
24 

by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by 

eliminating unfair competitive practices, by promoting the fullest 

possible uti.lization of the present productive capacity of inaustries, 

by avoiding undue restriction of production (except as may be temI,orarily required), by increasing the consumption of industrial and 

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

la.bor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees; it is not classified by 1ne as a major industry. 

(c) The Code as approved complies in all respects with the pertinent provisions of said Tit,le 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 applicant association is an industrial association truly representative of the aforesaid Industry; and that said association imposes no inequitable 

restrictions on admission to membership therein. 

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

or monopolistic practices. 

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

small enterprises and will not operate to discriminate against them. 

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

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

Code. 

Fo·r these reasons, I have approved this Code. 

Respectfully,. 

AuousT 27, 1934. 

HuGHS. JoHNsoN, 

Ad1ninistrator. 
CODE OF FAIR COMPETITION FOR THE ASSEMBLED 

WATCH INDUSTRY 

ARTICLE I-PURPOSES 

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

Industrial Recovery Act, this Code is established as a Code of Fair 

Competition for the Assembled "'\Y atch Industry, and shall be the 

standard of fair competition for such industry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "industry", as used herein, includes all 

enterprises engaged in the importing andjor assembling of imported 

watches, watch cases, watch movements or parts thereof; also purchasers for resale of imported watches andj or movements which 

may be confiscated and offered for sale by the United States 

Government. 

SECTION 2. The term "member of the industry" includes, but 

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

as an employer or on his or its own behalf. 

SECTION 3. The term "employee" as used herein includes any and 

all persons engaged in the industry, however compensated, except a 

member of the industry. 

SECTION 4. The term "employer" as used herein includes any one 

by whom such employee is compensated or employed. 

SECTION 5. The terms "President", "Act" and "Administrator" 

as used herein mean respectively, the President of the United States, 

the National Industrial Recovery Act and the Administrator of 

Title I of said Act. 

ARTICLE III-HouRs 

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

.forty (40) hours in any one (1) week or eight (8) hours in any 

twenty-four (24) hour period, except as hereinafter provided. No 

employ~e shall be.permitted to work more than six (6) days in any 

seven ( () day penod. A normal work day shall not exceed eight ( 8) 

hours. During the seasonal peak periods, during the months of September, October, November and December, employee,s may be permitted to work not to exceed .forty-eight (48) hours in any one (1) 

week only when the Code Authority has granted such permission, 

but provided further, that such employees shall receiYe at least one 

and one-half (llj2 ) times their respective rates of pay for overtime 

in excess of forty ( 40) hours in any one ( 1) week, or 8 hour,s in 

any 24 hour period. 

(25) 
26 

SECTION 2. No member o.f the industry shall employ, or cause to 

be employed, office or clerical employees for more than forty (40) 

hours per week, averaged over any consecutive three (3) months' 

period, provided that no such employee shall be employed more 

than forty-eight ( 48) hour::; in any one week; and provided further 

that the total number of hours worked by such employee shall not 

exceed five hundred and twenty (520) hours in any thirteen (13) 

weeks' period. 1 

SECTION 3. The provisions of this Article shall not apply to traveling salesmen or to employees engaged in emergency maintenance or 

emergency n~pair work, or to persons employed in a managerial or 

executive or supervisory ,or examining capacity who earn regularly 

thirty-five ($35.00) dollars per week or more; provided, however, 

that employees engaged in emergency maintenance and emergency 

repair work shall be paid at one and one-half (11/2 ) times their 

normal hourly rate for all hours worked in excess of forty ( 40) 

hours per week and eight (8) hours per day. 

SEcTION 4. 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, exceeds the maximum permitted 

herein. 

SECTION 5. vVatchmen may be permitted to work a maximum o£ 

fifty-six (56) hours per week, but no watchman shall be employed 

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

SECTION 6. 1\1embers or officers of members of the industry when 

doing productive work shall be restricted to the same hours as 

employees. 

ARTICLE IV-WAGES 

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

paid less than forty ( 40) cents per hour. 

SECTION 2. Office and clerical employees shall be paid not less 

than fourteen ($14.00) dollars per week. 

SECTION 3. (a) Persons learning an occupation shall be paid not 

less than eighty per cent (80%) of the minimum wage which prevails 

in such occupation, but in no case less than eighty per cent ( 80%) 

of the minimum prescribed in this Code. Learners shall not be 

employed as such for a period in excess of twelve (12) weeks irrespective of whether they are or have been employed by one or more 

employers. 

(b) Office boys and girls shall be paid at not less than eighty 

per cent (80%) of the minimum rate as herein provided. (Office 

boys and girls and learners shall not at any time exceed five per cent 

( 5%) of the total number of employees, provided, however, that 

each employer shall be entitled to at least one.) 

SECTION 4. The minimum rate of pay shall be paid irrespective 

of whether an employee is actually compensated on a time rate, 

piece-work, or other basis. 

SECTION 5. Equitable adjustment of compensation of employees 

receiving more than the minimum rates of pay shall be made by 

all employers who have not heretofore made such adjustments, and 

all employers shall within sixty (60) days after the effective date 

1 Amended. See paragraph 2 (8) ot order approving this Code. 
27 

of this Code, report in full to the Code Authority, £or submission 

to the Administrator, the action taken in pursuance of this provision, provided, however, that in no event shall hourly, weekly or 

piece-work rates be reduced. 

SECTION 6. F emale employees performing substantially the same 

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

employees. 

SECTION 7. A person whose earning capacity is limited because 

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 Labor, a certificate 

authorizing such person's employment at such wages and for such 

hours as shall be stated in the certificate. Such authority shall be 

guided by the instructions of the United States Department of Labor 

in issuing certificates to such persons. Each employer shall file 

monthly with the Code Authority a list of all such persons em- ployed by him, showing the wages paid to, and the maximum hours 

of work for such employee. _ SECTION 8. \Vages shall be paid at least semimonthly in lawful 

currency or by negotiable check therefor payable on demand. These 

wages shall be exempt from any payment, pensions, insurance or 

sick benefits, other than those voluntarily paid by the wage earner or 

required by law. 

ARTICLE V-GENERAL LABOR PROVISIONS 

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

employed in the industry. No person under eighteen (18) years of 

age shall be employed at operations or occupations which are hazardous in nature or dangerous to health. The Code Authority shall 

submit to the Administrator within sixty (60) days after the effective 

date, a list of such operations or occupations. In any State a member of the industrl shall be deemed to have complied with this provision as to age i he shall have on file a certificate or permit duly 

signed by the Authority in such State empowered to issue employm ent or age certificates or permits showing that the employee is of 

the required age. 

PROVISIONS FROM THE ACT 

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 activities 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 assisting a labor organization of his own choosing, and 

(c) That employers shall comply with the maximum hours of 

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

approved or prescribed by the President. 

82943 °----1044- 132----34----2 
28 

SECTION 3. Members of the industry shall not reclassify employees 

or duties of occupations performed, or engage in any other subterfuge for the purpo e of defeating the purposes or provisions of the 

Act 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 Administrator within six (6) months after the 

effective date of this Code. 

SECTION 5. No provisions in this Code shall supersede any State 

or Federal law which imposes on 1nembers of the industry more 

stringent require.1nents as to age of employees, wages, hours of work, 

or as to safety, health, ·sanitary or g'eneral w-orking conditions, or 

insurfLllee or fire protection, than are imposed by this Code. 

SECTION 6. All members of the industry shall post and keep posted 

compl~te copies of the wage and. hour and general labor provisions 

of t4is Code in conspicuous places accessible to ·employees. Every 

inem~r in the industry sha.U ·CompJy with all the rules and re-gulations relative to the posting of the provisi-Gns of the Code of Fair 

Competition whieh may frm.n time t-o time be prescribed by the 

Administrator. 

SECTION 7. (1) A person may b@. p·ermitted to engage in hon1ework 

at the sam-e ra,te of wages as is paid for the same type of work }JeTformed in the factory or other regular place of business if a certificate is obtained from the State authority ·or other officer designated 

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

g·ranted in accorda.nce with instru.cti.ons issued by the United States 

De1)artment of Labor, provided: 

(a) Such per.son is physically incapacitated for work in a factory 

or other regular place of business ·and is free from any contagious 

disease; or 

(b) Such person is unahle to lea-ve home because his or her services 

are absolutely essential for attendance on a person who is bedridd-en 

,or an invalid and both such persons are free frmn any contagious 

disease. 

( 2) Any employer engaging such a person shall keep such certificate on file and shall file with the Code Authority for the trade 

or industry or subdivision thereof -concerned the name and address 

of each worker so certificated. 

SECTION 8. No employer shall dismiss or d-emote any employee 

f9-r making a complaint or giving evidence with respect to an 

alleged -violation of the provisions of this Code. 

ARTICLE Vl-ORGANIZA'I'ION, PowERs, AND DuTIES -oF THE ConE 

AuTHORITY ~ 

ORGANIZATION AND CONSTITUTION 

SECTION 1. A Code Authority is hereby established t-o cooperate 

with the Administrator of this Code and shall consist o:f seven (7) 

members of the industry elected through a fair method of selection 

approved by the Administrator. 
29 

SECTION 2. 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 Administrator. 

SECTION 3. In addition to membership as above provided, there 

may be three (3) members, without vote, to be known as Administration members, to be appointed by the Administrator to serve for 

such terms as he may specify, without compensation from the 

industry. 

SEcTION 4. Each trade or industrial as ociation directly or indirectly participating in the selection or activities of the Code Authority shall (1) iinpose no inequitable restriction on membership, and 

(2) submit to the Administrator true copies of its articles of association, by-laws, regulations, and any amendments when made thereto, 

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

effectuate the purpo es of the Act. 

SECTION 5. In order that the Code Authority shall at all time be 

truly representative of the industry and in other respects comply with 

the provisions of the Act, the Admini trator may prescribe such 

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

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

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

appropriate modification of the Code Authority. 

SECTLON 6. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor 

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

to any one for any act of any other member, officer, agent or employee of the Code Authority. Nor shall any m.ember 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 7. If the Administrator 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 Administrator may require that such action be suspended pending final action, 

in order to afford an opportunity for investigation of the merits of 

such action and further consideration by such Code Authority or 

agency. Final action shall not be effective unless the Administrator 

approves or unless he slu.ll fail to disapprove after thirty (30) 

days' notice to him of intention to proceed with such action in its 

original or modified form. 

SEcTION 8. The Assembled Watch 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 duties hereunder, such corporation or corporate form to be not for profit and to be known as the Assembled 

Watch Industry Code Authority, Incorporated; provided that the 

powers, duties, objects and purposes of the said corporation shall, 

to the satisfaction of the Administrator, be limited to the powers, 

duties, objects and purposes o:f the Assembled Watch Industry Code 
30 

Authority as provided in this Code; provided further, that the 

existence of the :::::.id corporation shall be during the term of the Code; 

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

Administrator, for his approval, its proposed Certificate of Incor- poration and proposed By-laws, and no amendments of either shall 

be made without the like prior approval of the Administrator; 

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

its proposed Certificate of Incorporation and Bylaws, the written 

opinion of an attorney-at-law qualified in and conversant with the 

laws of the jurisdiction in which the Code Authority seeks to be 

incorporated, as to the nature and extent of the jurisdiction, powers 

and authorities exercisable by the State in question and its agencies 

over the activities of the Code Authority as a corporation, supporting such opiniqn by citation of relevant authorities and supplementing the same with a table, certified to be complete, of all 

laws, statutes and other regulatory provisions governing corporations created pursuant to the laws under which the Code Authority 

seeks to be incorporated. If at any time, the Admini trator shall determine that the cor- porate status assumed by the Code Authority is interfering with the 

proper exercise of its powers and duties under this Code, or with 

the effectuation of the policies or purposes of the Act, he may, 

after such notice and hearing as he may deem necessary, require 

an appropriate modification of the structure of the Corporation, (i~ consistBnt with the law of the State of Incorporation) the substitution of a corporation created under the laws of another State 

in the same manner as the existing Code Authority, the substitution 

of a non-corporate Code Authority truly representative of the 

industry or such other actions as he may deem expedient. 

POWERS .AND DUTIES 

SECTION 9. Subject to such rules and regulations as may be issued 

by the Administrator, the Code Authority shall have the following 

powers and duties, in addition to those authorized by other provisions of this Code. (a) To insure the execution of the provisions of this Code and 

provide for the compliance of the industry with the provisions of 

the Act. 

(b) To adopt bylaws and rules and r egulations for its procedure. (c) To obtain from members of the industry such information 

and reports as are required for the administration of the Code. 

In addition to infonnation required to be ubmitted to the Code 

Authority, members of the industry subject to this Code shall furnish 

such statistical information as the Administrator shall deem necessary for the purposes recited in Section 3 (a) of the Act to such 

Federal and Stat-e agencies as he may designate; provided nothing 

in this Code shall relieve any member of the industry of any exist- ing obligation to furnish reports to any government agency. No 

individual report shall be disclosed to any other member of the 

industry or to any other party except to such other governmental 

agencies as may be directed by the Administrator except as hereinafter provided. And except further as provided in the Act, all sta-
31 

tistical and other information, filed or obtained in accordance with 

the provisions of this Article, shall be confidential and shall be 

filed with a firm of public a.ccountants in good standing or with 

such other agency as the Code Authority may designate. No statistical or other information furnished bv individual members of the 

industry shall be disclosed to any odl.er member of the industry 

(whether or not be he a member' of the Code Authority), nor to 

anyone in the employ of such other member; providing however that 

such statistical or other information may be disclosed to members 

of the Code Authority for the _purpose of facilitating the administration or enforcement of the Code, but only upon the written consent of one of the Administrator's appointees to 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 recommendations to the Administrator for the coordination of the administration of this Code with such other Codes, 

if any, as may be related to the industry. 

To designate representatives to act on a joint committ~ with representatives of any other Code Authority of a related industry, having reciprocal provisions in its code, to consider question$ regarded 

by either Code Authority as of common concern with reference to the 

effectuation of the policies of the Act (including questions as to 

whether the operations of a given concern come within the jurisdiction of this or any other code), and to take such action as they 

may jointly agree to be appropriate, subject to the veto of the 

Administrator. 

(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 Administrator for his approval, subject to 

such notice and opportunity to be heard as he may deem necessary. 

(1) an itemized budget of its estimated expenses for the foregoing 

purposes, and (2) an equit able 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 Administrator, 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 Administrator. Only mem-
32 

'bers of the industry complying "With the Code and contributing to 

the expem e of it admini tration as hereinabo\e provided (unless 

duly exempted from making uch contributions): shall be entitled to 

participate in the ... election of members of the Code Authority or to 

receiye the benefits of any of its \oluntary actinties or to make use 

of any emblem or in~ignia of the ~ ational Recovery Admini tration. 3. The Code Authority shall neither incur nor pay any obligation 

sub tantiallv in e:s::cess of the amount thereof as e timated in its ap- proved bud~et · and hall in no event e:s:ceed the total amount contained in the approved budget e:s:cept upon approval of the Admin- i trator: and no ub equent budget shall contain any deficiency item 

for expenditure in exce of prior budget estimates except those 

which the Aclmini trator hall ha\e o approV"ed. 

(g) To recommend to the Aqmini ·trator further fair trade practice pron ions to govern member of the industry in their relations 

with each other or with other indu tries and to recommend to the 

Admini trator measures for industrial planning, including stabilizatjon of employment. 

'r:cnox 10. The Code .A .. uthority hall require to uch e:s:tent in 

~uch form and at uch time a may be prescribed by the Code Au- thority member of the inclu try to prepare and file with a firm of 

public nccountants in good standing to be de ignat€d by the Code 

:Authority uch information a- may be required by the Administrator 

in order to record the functioning or obseryance of this Code, 

including: 

(a) i\Ionthly report of employment showing for each employ- ment cla ification, the aYerage number of employees and uch additional information a i required to e tablish the ob erYance or non- ob ervance of the wage and hour provision of this Code; 

(b) (1) ~Ionthly report of complete watch movements (in units) 

purcha ed and sold and dollar inYentories of parts· (2) month-end 

inYentorie of the foregoing with proper description· (3) within 

two (2) week after the effectiYe date of this Code (unle s the time 

in further extended by the Code Authority, such extension however 

not to e:s::ceed thirty (30) day after such effective date) a report 

containing a complete li t of all imported watches or watch movement whether complete or incomplete and watch ca es which the 

member ha in stock or out on memorandum or con ignment, or in 

which he ha ~ an direct or indirect owner hip; such list to contain 

a proper description a to size hape jeweling, adju~tment, and for- eign manufacturer· or importer~ name and the trade mark or name 

appearing on the movement . Thi li t shall also contain the dollar 

Yalue of foreign made )?arts of watches in the members stock on the 

effectiYe date of this Gode · ( 4) any other information which the 

Code ~ uthority may require. Such reports and other information 

shall be furni heel as of such date as the Code Authority may direct. 

The foregoing information ..,hall be cla sified in such manner as 

the Code Authority rna' determine having particularly in new the 

tracing of importe<i merchandi e (whether imported for own account 

or purcha ed from other domestic source ) from the port of entry 

to the customer. 

ECTIOX 11. Each member of the industry shall keep accurate and 

complete records of its tran actions in the industry whenever such 
33 

records may be required under any of the provisions of this Code, 

and shall furnish accurate reports based upon such records concerning any of such activities when required by the Code Authority or 

the Administrator. If the Code Authority or the Administrator 

shall determine that substantial doubt exists as to the accuracy of any 

such report, so much of the pertinent books, r ecords and papers of 

such member as may be required for the verification of such report 

may be examined by an impartial agency, agreed upon between the 

Code Authority and such member, or, in the absence of agreem nt, 

appointed by the Administrator. In no case shall the facts disclo ed 

by such examination be made available in identifiable form to any 

competitor, whether on the Code Authority or otherwise, or be given 

any other publication, except such as may be required for the proper 

administration or enforcement of the provisions of this Code. 

SECTION 12. The Code Authority shall consider the problem arising from the practice of smuggling into this country of watches, 

watch movements, andjor watch cases, and parts of all the foregoing, with a view to reducing, as far as possible (1) the effects of 

such practice upon the honestly conducted business, whether in this 

industry or in the domestic watch manufacturing industry, and upon 

unemployment and wages of such industries; and (2) the cost to 

the Government arising from loss o:f import duties and o:f taxes upon 

the profits o:f such industries. The Code Authority shall make 

recommendations to the Administrator and/or to the other appropriate government authorities, as to :forms of record-keeping, 

both by the importer and the custom's authorities; as to identification 

of imported merchandise upon which duty has been paid; as to increasing the premium money to inforners, and as to the disposal of 

smurrgled merchandise seized by the United States Government. 

SEcTION 13. (a) Vlithin two (2) weeks o:f the effective date hereof (unless such time is further extended by the Code Authority, 

such extension not to exceed thirty (30) days from the effective 

date of this Code) each member o:f the industry shall register with 

the Code Authority the title under which its business is conducted, 

its business address, and the names and titles of its officers or firm 

members and shall at that time apply :for a mark, insignia, trade 

mark, or number which the Code Authority shall assian to such 

member :for his exclusive use, and such number, mark, insignia, 

or trade mark shall appear on all stationery or forms (except those 

used for internal purposes), and on all watches and watch movements thereafter imported directly or indirectly by such member, 

as the Code Authority may prescribe. 

(b) The Code Authority shall assign to each member of this indu try so registered, a registration number for the exclusive use of 

such member. After one (1) month from the time of such assignment the member's registration number shall appear on all such sta- tionery or other forms (excepting those used for internal purposes) 

of the member as the Code Authority may direct. Such registra- tion nun1ber shall also appear on all watch movements imported by 

the member after six ( 6) months from the date of such assignment ; 

but the Code Authority shall, subject to the approval of the Administrator, have the right in specific cases to grant additional time (not 

exceeding ninety (90) days) for compliance with this provision, on 
34 

the presentation of proper proof that a bona fide attempt has been 

made to comply within the six (6) month period, and that the member, though acting diligently and in good faith, has not been able so 

to comply. 

(c) .J. To mark, insignia, or number, nor any of the marks now 

required by law to remain upon imported movements shall be 

effaced, ob cured or changed in any manner after importation. 

ection 14. After the effective date of this Code no member of 

this indu try shall order for import any complete watch or watch 

cases unles he complie with the marking provisions of the \Vatch 

Case l\Ia!lufacturers Code. 

ARTICLE \ II-Co. T AXD PmcE CUTTH\G 

SEcTro~ 1. The standards of fair competition for the indu try 

with reference to pricing practices are declared to be as follows: 

(a) \Yilfully destructive price cutting is an unfair method of 

competition and is forbidden. Any member of the indu try or of 

any other indu try or the cu tomer of either may at any time complain to the Code Authority that any quoted or charged price constitutes unfair competition as de tructive price cutting, imperiling 

small enterprise or tending toward monopol or the linpairment of 

code wage and working condition . The Code .Authority shall 

within five ( 5) days afford an opportunitv to the member quoting 

or charging the price to an wer such complaint and shall within 

fourteen (14) day make a ruling or adju tment thereon. If such 

ruling is not concurred in by either party to the complaint, all 

papers shall be referred to the Re earch and Plannli1g Division of 

the National Recovery Administration which shall render a report 

and recommendation thereon to the Administrator. 

(b) When no declared emergency exists as to any given product, 

there is to be no fixed minlinum ba is 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 

policie . 

(c) \Vhen an emergency exi ts a to any given product. sale below 

the stated minimum price of such product, in violation of Section 2 

hereof, is forbidden. 

E:.\-IERGENCY PROYISIO ..... -s 

S.EcTrox 2. (a) I£ the Administrator, after inve tigation, shall at 

anv time find both ( 1) that an emergency ha ari en within the 

industry adversely affecting small enterprise or wage or labor condition or tending toward monopoly, or other acute condition whicT1 

tend to defeat the purpo. es of the Act; and (2) that the determination of the stated minimum price for a pecified product within the 

industry for a limited period i nece sary to mitigate the condition 

con titutin~ such emergency and to effectuate the purpo ·es of the A t 

the Code Authority may cau e an impartial agency to inYe bo-ate 

co ts and to recommend to the Administrator a determination of the 

~ated minimum price of the product affected by the emergency and 

th.er.eu pon th~ AdministrJJ.tor may proceed to determine such stated 

m1n1mum pnce. 
35 

(b) When the Administrator shall have determined such stated 

n1inimum price for a specified product for a stated period, which 

price shall be reasonably calculated to mitigate the conditions of such 

emergency and to effectuate the purposes of the National Industrial 

Recovery Act, he shall publish such price. Thereafter, during 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 destructive price cutting. From time 

to time, the Code Authority may recommend review or reconsideration or the Administrator may c.ause any determination hereunder 

to be reviewed or reconsidered and appropriate action taken. 

COST FINDING AND ACCOUNTING 

The Code Authority shall cause to be formulated methods of cost 

finding and accounting capable of use by all members of the industry, 

and shall submit such methods to the Administrator for review. 

If approved by the Administrator, full information concerning such 

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

Thereafter, each member of the industry shall utilize such methods 

to the extent found practicable. Nothing herein contained shall be 

construed to permit the Code Authority, any agent thereof, or any 

n1ember of the industry to 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 VIII-TRADE PRACTICE RuLES 

SECTION 1. No member of the industry shall publish advertising 

(whether printed, radio, display, or of any other nature), which is 

misleading or inaccurate in any material particular, nor shall any 

n1ember in any way misrepresent any goods (including, but without 

limitation, its use, trade mark, grade, quality, quantity, origin, size, substance, character, nature, finish, material content, or preparation) 

or credit terms, values, policies, services, or the nature or form of the 

business conducted. 

SECTION 2. All orders and invoices shall include a clear and complete statement of the terms and conditions upon which the transaction was based and no member of the industry shall withhold 

from or insert in any quotation, order or invoice any statement that 

shall make it inaccurate in any material particular. 

SECTION 3. No member of the industry shall falsely brand or mark 

or pack any goods in any manner which is intended to or does deceive or mislead purchasers with respect to the 'brand, grade, quality1 quantity, origin, size, substance, character, nature, finish, material 

content or preparation of such goods. 

SECTION 4. No member of the industry shall publish advertising or 

otherwise circulate statements or inferences which refer inaccurately 

in any material particular to any competitor's conduct, ability to 

perform contracts, credit standing, or otherwise, or to such competitor's goods, prices, values, credit terms, policies, or services. 

SEcTION 5. No member of the industry shall publish or cin:u:~a.te 

unjustified or unwarranted threats of legal proceedings which ~nd 
-

36 

to or have the effect o£ harassing competitors or intimidating their 

cu tomers. 

SECTION 6. No member of the indu try shall secretly offer or make 

any payment or allowance of a rebat-e, refund, commission, credit, 

unearned discount, or allowance in excess of those hereinafter specified whether in the form of money or otherwise, nor shall a member 

of the industry ecretly offer or extend to any customer any special 

service or privilege not extended to all customers of the same class, 

for the purpo e of influencing a ale. 

SEcTiox 7. N" o merchandi e hall be shipped : 

(a) On cons]gnment or memorandum, except upon approval by 

the Code Authority where peculiar conditions in the indu try warrant same and except that products may be o shipped to be shown 

to a specific cu tomer of the con ignee, or to permit selection by 

the consignee for purpo es of stock provided, however, that unless 

the con ignee shall make report on such products within ten (10) 

day of receipt thereof, the} shall be regularly invoiced on the net 

basis. · 

(b) For advertising display purposes, except in accordance with 

such rules and regulations as may be prescribed by the Code 

Authority. 

SECTION 8. No merchandi e hall be accepted for credit or exchange unless defective, demonstrably below sample, or because received after the agreed delivery date, or in other material respects 

does not conform with the contract of sale, and then only if notice 

is received from the customer within two (2) weeks of date of 

receipt of said merchandise by the customer, stating his intentions 

and the reasons therefor. If found to be defective or below sample7 

or in other material respects does not conform with . the contract 

of sale, the member of the industry may issue to the customer a 

credit memorandun1 or refund monies paid. 

SECTION 9. No watch movements shall be repaired £or less than 

the cost of such repairs, unless such repairs are necessitated by defective material and/ or workmanship and then only if such merchandise ha been returned by the customer within sixty (60) days of 

receipt thereof from the member of the industry.2 

SECTION 10. No member of the industry shall give, permit to be 

giYen, or directly or indirectly 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 emplo) er of such emplo-ree the principal of such agent, or the 

represented party, without the knolfledge of such employer principal or party. This provision shall not be construed to prohibit 

free and general distribution of articles commonly used for adverti ing except so far as such articles are actually used for commercial 

bribery as hcreinaboYe defined. 

SECTIOK 11. No member of the industry shall dispose of or permit 

the di posal of second-hand or rebuilt watches or lfatches containing second-hand or rebuilt movements, unless there shall be affixed 

to each such watch a tag stating that the watch is second-hand or 

rebuilt and requiring that the tag remain affixed until the watch is 

solcl at r etail. 

2 Deleted and ubstitution made. See paragraph 2 (1) of order approving this Code. 
37 

SECTION 12. No member o£ the industry shall give, permit to be 

given, or directly offer to give any tree watch material or cabinets 

or display boxes, except to the extent that such watch material may 

be supplied without charge for purposes of replacing demonstrably 

defective material previously sold to the recipient. 

SECTION 13. No member of the industry shall distribute dealers' 

helps, such as mailing cards, mailing or counter folders, etc., at a 

price calculated to reimburse the member for less than fifty per cent 

(50% ) of his out-of-pocket costs. This restriction shall not include 

window or outside displays, engraving, electrotype, plaws, stereotypes, matrices, and the like. 

SECTION 14. No member of the industry shall attempt to induce 

the breach of an existing contract between a competitor and his 

employee or customer or source of supply; nor shall any such 

member interfere with or obstruct the performance of such contractual duties or services.8 

SECTION 15. No member of the industry shall enter into any agreement, understanding, combination or conspiracy to fix or maintain 

price terms, nor cause or atwrnpt 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. 

SECTION 16. All prices quoted and all sales made shall be f. o. b. 

point of shipment. 

SECTION 17. On all sales made on or after the effective date hereof, 

all members of the industry shall adhere strictly to the following 

conditions : 

(a) Terms shall be no more favorable than 2%, 10 days, e.o;m., 

60 days neth· providing that on shipment made after the 25th day 

of the mont , the member of the industry may date as of the first 

of the following month, and providing further, that settlements made 

under the terms of this subsection (a) shall be in cash. Such settlements not discounted under the terms of this subsection (a) may be 

entitled to anticipation at the rate of 6% per annum, if made before 

the expiration of the 60-day period. Interest at the rate of 1j2% 

per month shall be charged on all open accounts running beyond 

such net settlement date. 

(b) Where members of the industry require long advance preparations in completing their products, the following terms may be 

allowed to customers by members of the industry who are wholesaling products valued at $20.00 or more e~ch wholesale and only 

with respect to articles so valued; amounts due for merchandise 

purchased during the six ( 6) months between January 1 and June 

30 (both inclusive) in any year, shall be payable on July 10 of that 

year; amounts due for merchandise purcha eel during the six ( 6) 

months between July 1 and December 31 (both inclusive) in any 

year shall be payable on January 10 cf the followin~ year; providing, however, that discounts allowed shall not exceed two (2) per 

cent, and providing further that, where a particular customer avails 

himself of the provisions of this paragraph (b) , he shall not be 

granted longer terms on purchases of other merchandise within the 

same six ( 6) months' period. 

8 .Amended. See paragraph 2 {2) of order approl'ing this Code. 
38 

llllllllll~m~~~~~~~~~~~~~~~~~~~~lil\lll~l ~1i1111111111 3 1262 08582 8340 

(c) By agreement with the purchaser :prior to shipment, any 

member of the industry may accept notes 1n settlement of the account, provided, howeYer, that such notes shall be dated not later 

than the 10th of the month following such shipment and shall be 

in the hands of the member at or about the 15th of the month and, 

provided further, that such note settlement shall not exceed ten (10) 

1nonthly notes nor average over five ( 5) months. If force of circumstances shall require extension of original notes at maturity, 

interest shall be charged at the rate of six per cent ( G%) per annum 

for such extension, which, however, shall be for not over ninety 

(90) days. 

SECTION 18. No cash discount shall be allowed on any note settlement, nor shall a non-interest bearing note be accepted in payment 

of a matured obligation. Notes accepted after the net due date with 

a tolerance of ten (10) days must bear interest from the net due date 

at a rate not less than six per cent ( 6%) per annum., or at the legal 

rate governing the contract if less than six per cent ( 6%) from the 

net due date, provided that unsecured and non-interest bearing 

notes may be accepted from insolvent or financially embarassed 

debtors. Notes so accepted shall be immediately reported to the 

Code Authority. 

SECTION 19. No member of the industry shall make allowances 

and/ or donations to customers for advertising purposes or for any 

other purpose not approve.d by the Code Authority. 

ARTICLE IX-~10DIFICATION 

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

made subject to the right of the President, in accordance w1th the 

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

time to cancel or modify any order, approval, license., rule or regula- tion issued under said Act. 

SECTION 2. This Code, except as to 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 Adn1inistrator and such notice and hearing as 

he shall specify, and to become effective on approval of the President, 

unless otherwise provided. 

ARTICLE X-MONOPOLIES, ETc. 

SECTION 1. 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 XI--EFFECTIVE DATE 

Sgm:oN 1. This Code shall become effective upon the tenth (10th) 

day after its approval by the Administrator. 

Approved Code No. 510. 

Regisu·y No. 1208-<l7. 

0