V 

Approved Code No. 527 Registry No. 1121-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

I 

METAL HOSPITAL FURNITURE 

MANUFACTURING INDUSTRY 

AS APPROVED ON OCTOBER 23, 1934 

WE DO OUR PART 

U ~ ,~,:.'. ~,n<k!ro•y .v. - ,_. · 1.....;::n n ------~.:__--~ 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D. C. - - - - - - - - Price 5 cents 
Tbis publication is fo!" sale by the Superintendent of Documents, Government 

Priuting Office, Washington, D. C., and by district offices of the Bureau of 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Po t Office Building. 

Birmingham, Ala. : 257 F ederal Building. 

Bo ton, i\lass. : 1801 Uustoruhou::;e. 

Buffalo, N. Y.: Clw~ber of Commerce Building. 

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

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

Cleveland, Ohio: Chamber of Commer ce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 801 F irst National Bank Building. 

Hou ' ton, Tex.: Chamber of Commerce Building. 

Jnclianapolis, Ind.: hamber of Commer ce Building. 

Jack sonville, Fla.: Chamber of Commerce Building. 

Kansas ity, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville. Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, l\linn.: 213 Federal Building. 

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

New York, N. Y.: 734 Cu tombou e. 

Norfolk, Va. : 4.06 East Plume Street. 

Philadelphia, Pa.: 4-2 Commercial Tru t Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 215 Nt>w Post Office Building. St. Louis, Mo.: 506 Olive Street. 

San Frunc:isco, Calif.: 310 Custombou~e. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 527 

CODE OF FAIR COMPETITION 

FOR THE 

METAL HOSPITAL FURNITURE MANUFACTURING 

INDUSTRY 

As Approved on October 23, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION FOR THE METAL HOSPITAL 

FURNITURE MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

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

Fair Competition for the Metal Hospital Furniture Manufacturing 

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: 

NO\V, THEREFORE, on behalf of the President of the United 

States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders of the Presidenti including 

Executive Order No. 6859, and otherwise; does hereby mcorporate 

by reference said annexed report and does 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 does hereby 

order that said Code of Fair Competition be and it is hereby 

approved. 

NATIONAL INDUSTRIAL RECOVERY BOARD, 

By G. A. LYNCH, Administrative Officer. 

Approval recommended: 

lCILBODRNE JOHNSTON, _ 

Acting Division Administrator. 

WASHINGTON, D. c., 

October 23, 1934. 

92884°-1244- 81-34-1 (43) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White Howse. 

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

Metal Hospital Furniture Manufacturing Industry, a hearing having 

been conducted thereon in ,v-ashington, D. C., August 4, 1934, in 

accordance with the provisions of Title I of the National Industrial 

Recovery Act. 

PROVISIONS AS TO HOURS AND W AGES 

The maximum hours are established in this Code as follows: All 

employees, except employees engaged in an executive, managerial or 

supervisory capacity who receive thjrty-five dollars ($35.00) per week 

or more and outside salesmen or watchmen-forty ( 40) hours in 

any one week, or eight (8) hours in any twenty-four (24) hour 

period and six (6) days in any seven (7) day period; watchmen- .fifty-six (56) hours per week, and one day of rest in every seven 

(7) day period. The maximum hour provisions shall not apply to 

t.he following: Employees on emergency maintenance or emergency 

repair work involving breakdowns or protection of bfe or property, 

but in any such special case at least one and one-half (l1⁄2) times 

their regular rate shall be paid for hours worked in excess of eight 

(8) hours in any twenty-four (24) hour period .or forty (40) hours 

in any one week; employees for six ( 6) weeks in any twenty-six 

(26) weeks period during which overtime shall not exceed eight 

(8) hours in any one week nor shall any employee be permitted to 

work in excess of nine (9) hours in any twenty-four (24) hour 

period; provided that at least one and one-half (l1⁄2) times the 

regular rate shall be paid for hours worked in excess of eight 

(8) hours in any twenty-fou-: (24) hour period of forty ( 40) hours 

in any seven day period. No employer shall permit any employee 

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

permitted herein. 

The minimum wages are established in this Code as follows : All 

employees, except clerical or office employees-forty cents ( 40¢) pe:r 

hour; clerical and office employees-fifteen dollars ($15.00) per week. These minimum rates of pay shall apply irrespective of whether an 

mployee is actually compensated on a time rate, piecework, or other 

basis and female employees performing substantially the same work 

as male employees shall receive the same rate of pay as male employees. Employees ,vhose earning capacity is limited because of age 

or physical or mental liandicap or other infirmity may be employed 

on light work at a wage below the minimum cst::!.blishecl by this Code 

if such employer shall obtain from the State authority designated by 

the United States Department o,f Labor a certificate authorizing his 

(44) 
45 

employment at such wages and for such hours as shall be stated in 

the certificate. 

The employment o:f any person under sixteen (16) years. of age 

is prohibited, with a further provision that no person under eighteen 

(18) years o:f age may be employed in any occupation hazardous in 

nature or dangerous to health. 

GENERAL STATEMENT 

This Industry consists of companies which manufacture for sale, 

and sale by the manufacturer, of metal hospital furniture commonly 

u ed in hospitals or similar institutions and/ or by physicians or 

surgeons. 

T11ere are approximately thirty-six manufacturers in the Industry, 

which number has been constant since 1928. The estimated number 

of employees reached a peak in 1930 with 2,370, and a low in 1933 

with 1,940, a decrease of about 18 percent. The estimated aggregate 

invested capital decrea ed from a peak of $6,990,000 in 1930 to a low 

of $6,638,000 in 1933, a decrease of about 5.1 percent. The highest 

volume of sales was recorded in 1928 with $8,124,000, which volume 

dropped to $5,411,000 in 1933, a decrease of about 33 percent. 

The estimated production capacity has decreased by about 16 

percent during the past five years. 

FINDINGS 

The Assistant Deputy Administrator in his final report on said 

Code having found as herein set forth and on the ba is of all the 

proceedings in this matter; 

It is found that: 

(a) Said Code is well designed to promote the policies 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 including and maintaining united action of labor and management 

under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest po sible 

utilization of the present productive capacity of industries, by avoiding undue rBStriction of production ( except as may be temporarily 

require-..1), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing 

and relieving unemployment, by improving standards of labor, and 

by otherwise rehabilitating industry. 

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

( c) The Code as approved compl1es in all respects with the pertinent provisions 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 applicant a ociation is an industrial association truly representative of the aforesaid 

Industry; and that aid a sociation imposes no inequitable restrictions on admi sion to membership therein. 
46 

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

or monopoli tic praeices. 

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

small enterpri c:es and will not operate to liscriminate again t them. 

( f) Those engaged in other teps of the economic process have not 

been l1epriYed of the right to be heard prior to approval of sa · d Code. 

For the e rea 011s, therefore, the National I ndustrial Recovery 

Board has approved thi Code. For the ational I ndu trial Recovery Board : 

OCTOBER 23, 1934. 

G. A. LYNCH, 

Adm,inistrative Office1'. 
CODE OF FAIR COMPETITION FOR THE METAL HOSPITAL FURNITURE MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSE 

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

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

Metal Hospital Furniture Manufacturing Industry, and upon approval 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 " Metal Hospital Furniture Manufacturing 

Industry" or "Industry" as used herein includes the manufacture 

for sale and sale by the manufacturer of metal hospital furniture 

. commonly used in hospitals or similar institutions and/or by 

physicians or surgeons. 

SECTION 2. The term " Member of the Industry " as used herein 

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 Industrv. 

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

by whom such employee is compensated or employed. 

SECTION 5. The term " association " as used herein shall mean the 

Association of ~1anufacturers of Metal Hospital Furniture, or its 

successor. 

SECTION 6. The terms "President", "Act", and "Administrator" 

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

Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery. 

SECTION 7. The term " Confidential Agent" or "Agent" of the 

Code Authority, as used herein, is defined to mean the person as 

designated by the Code Authority. Said Agent, in order to qualify 

as such, shall be entirely free from any interest in or connection 

with any company engaged in the manufacture or sale of the products 

of the Industry. 

SECTION 8. The term " Code Authority " as used herein means the 

agency which is to administer this Code as hereinafter provided. 

ARTICLE III-HOURS 

SECTION 1. No employee shall be permitted to work in excess of 

forty ( 40) hours in any one week, or eight (8) hours in any twentyfour (24) hour period, except as herein otherwise expressly provided. 

(47) 
48 

No emplo ee shall be permitted to work more than six ( 6) days in 

any seven (7) day period. 

SECTION 2. The maximum hours fixed in Section 1 shall not apply 

to employees engaged in an executive, managerial or supervisory 

capacity who receive $35.00 per week or more, and outside salesmen. 

ECTION 3. The maximum hours fixed in Section 1 shall not apply 

to employees or emergency maintenance or emergency repair work 

involving breakdown or protection of life or property, but in any 

uch special ca e at lea t one and one-half (11⁄2) times their regular 

rate hall be paid for hours worked in excess of eight (8) hours in 

any t-wenty-four (24) hour period or f orty (40) hours in any one 

week. 

SEcTio 4. The maximum hours fixed in Section 1 hall not apply 

to employees for six (6) weeks in any twenty-six (26) week period 

during which time overtime shall not exceed eight (8) hours in any 

one week nor shall any employee be permitted to work in excess of 

nine (9) hours in any twenty-four (24) hour period except that in 

any case of emergency any employee may work longer than the 

maximum hours of labor pre cribed in thi Article; provided that at 

least one and one-half (11⁄2) times the regular rate shall be paid for 

hours worked in excess of eight (8) hours in any twenty-four (24) 

hour period or forty ( 40) hours in any seven day period. 

SECTION 5. No employer shall permit any employee to work for 

any time which when totaled with that already performed for another employer, or employers, exceeds the maximum permitted herein. 

SECTION 6. Watchmen shall be permitted to work not in exce of 

fifty-six ( 56) hours per week, provided, that they sh all be given one 

day of rest in every seven (7) day period. 

SECTIO.. 7. Employers who personally perform manual work or 

who are engaged in mechanical operations in connection with the 

manufacture of products of the Indu try hall not exceed the prescribed maximum hours. 

ARTICLE IV-WAGES 

SECTION 1. No employ~e shall be paid in any pay period le s than 

at the rate of 40 cents per hour, except as herein otherwi e provided. 

SECTION 2. No clerical or office employee shall be paid in any pay 

period less than at the rate of $15.00 per week. 

SECTIO~ 3. Thi Article establishe minimum rates of pay which 

c::hall apply, irrespective of whether an employee is actually compensated on a time rate piecework or other ba i . 

ECTIO 4. Female employees performing ubstantially the same 

work a mal mploy e shall receive the same rate of pay a male 

empl yee . 

E TION 5. person whose earning capa"ity i limited becau of 

ao·e or physical or mental handicap or other infirmity may be 

empl y d on light work at a wage below the minimum e tablished 

by tlus de if such employer shall obtain from the tate Authority 1 ignated by the nited tates Department of Labor a 

certificate auth riz1ng hi employm nt at such wage and for such 

hours a shall be tated in the certificate. Each employer hall file 

monthly with the Code Authority a li t of all such per ons em-
49 

ployed by him, showing the wages paid to, and th 0 maximum hours 

of work for, such employee. 

SECTION 6. Equitable adjustment of compen ation of all employees receiving more than the minimum rates of pay shall be made 

by all employers who have not heretofore made such adju tments, 

and all employers "'hall within thirty day after approval of this 

Code, report in full to the Code Authority concerning such adju tments whether made prior to or subsequent to such approval, provided, however, that in no event shall hourly rates of pay be 

reduced, irrespective of whether compensation is actually paicl on 

an hourly, weekly, or other basis, nor shall any wages be at less 

than the minimum rates herein provided. 

SE TI0.1. 7. This article cstabli~,l1es rates of pay which shall be 

exempt from any charge, fine und/or deduction by the employer, 

except uch charges or deductions required by State or Federal 

Law. 

SECTION 8. The employer shall make payments of all ,Yages due 

in lawful currency or by negotiable check therefor, payable on 

demand. These wages shall be exempt from any payment for 

pensions, insurance or sick benefits other than thos voluntarily 

paid by the wage earner , or required by State or Federal Law. 

,v ages shall be paid at least by the end of every two week periotl, 

and salaries shall be paid at least at the end of every month. No 

employer shall withhold wages. The employer or his agents hall 

accept no rebates directly or indirectly on such wages, nor give 

anything of value or extend favors to any person for the purpose 

of influencing rates of wages or the working conditions of his 

employees. 

AnTICLE V-GENER.'i.L LAnon PROYISION 

SECTION 1. (a) Employees shall have the right to organize and 

bargain collecti,~ely through representatives of their own choosing1 and shall be free from the interference, re traint, or coercion ot 

employers of labor, or their ag nts, in the de ignation of such repre entatives or in self organization or in other concerted activities 

for the purpose of collective bargaining or other mutual aid or 

protection. 

(b) No employee an l no one seeking employment shall be required as a con lition of employment to join any company union 

or to refrain from joining, organizing, or as i ting a labor or<Yanization of his own choosing, and 0 

(c) Employ 0 rs hall comply with the maximum hours of labor, 

minimum rate of pay, and other conditions of employment approve<l 

or pre cribed by the President. 

SECTI<..1N 2. To per~ons under sixteen (16) years of age shall be 

employed in the Indu try. No persons under eighteen (18) years of 

age ·hall be mployed at op 0 rations or occupations which are hazardous in nature or dangerous to health. The Code Authority shall 

submit to the Administrator for approval before January 1, 1935, a 

li t of ..., uch operations or occupations. In any State an employer 

. hall be de med to have complied with this provi ion as to age if he 

shall haYe on file a valid certificate or permit duly signed by the 

!)2884°-1244- 81-34-2 
50 

Authority in uch State empowered to issue employment or age 

certificates or permits, howing that the employee is of the required 

age. 

SECTION 3. Employers shall not re-cla ify employees, or duties of 

occupations performed, or engage in any other subterfuge so as to 

defeat the purposes of the Act or thi Code. 

SECTION 4. ,vithin ten (10) day after the effective date of this 

Code, each employer shall post, and keep posted, in conspicuous 

place accessible to employees full copies of thi Code and any amendments or modification which may later be approved in accordance 

with Executive Orders and/ or regulations thereof. E,·ery member 

of the Indu try hall comply with all rule and regulations relative 

to the posting of provisions of Codes of Fair Competition which 

may from time to time be prescribed by the Administrator. 

SE TION 5. Every employer shall make provision for the afety 

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

their employment. Standards for safety and health shall be submitte l by the Code Authority to the Administrator within three (3) 

months after the effective date of the Code. 

ECTION 6. No employee shall be di mi sed or demoted by reason of 

making a com.plaint or giving evidence with respect to an alleged 

violation of this Code. 

' ECTION 7. No provision in the Code shall supersede any State or 

Federal law which impo es on employers more stringent requirements 

a to age of employees, wages, :-iours of work, or as to safety, health, 

sanitary or general working conditions, or in urance, or fire protection than are im po ed by this Code. 

ARTICLE VI-ORGA :rrzATION, PowER , AND DuTIES OF THE ConE 

AUTHORITY 

SECTION 1. (a) During the period not to exceed thirty (30) days 

following the effective date of this Code the Code Committee of the 

A ociation of Ianufacturers of :Metal Hos1 ital Furniture shall constitute a temporary Code Authority until the Code Authority is 

ele ted. Theie shall be constituted within the thirty (30) day period 

a Code Authority con i ting of six ( 6) members to be elected by the 

member of the Industry at a meeting called by the temporary Code 

Authority. Notice of uch meeting hall be sent by registered mail 

to all knoTI"n members of the Industry who e names hall have been 

ascertained after dilig nt c-earch by the A ociation of l\fanufacturers 

of :Metal Ho pital Furniture, such notice to be mailed to all known 

members of the Industry at least fifteen (15) days prior to the date 

on which such meeting is to be held. 

(b) The member of the Code Authority shall be elected in the 

following manner : 

1. Only tho e members of the Industry who agree to pay their 

reasonable share of the expenses of the administration of this Code 

shall be entitled to vote in the el ction of the Code Authority. 

2. Six (6) members of the Indu try hall be elected members of the 

Code Authority by a majority vote of all known members of the 

In lustry, pre ent in person or by proxy each member to have one 

vote; aid ele tion to be ubject to the approval of the dministrator. At least one member of the Code Authority shall be a non-
51 

member 0£ the Association 0£ :Manufacturers of Metal Hospital Furniture, provided, however, that such a non-Association member of 

the Industry is available and willing to serve. 

3. The members so elected to the Code Authority shall serve £or 

a period 0£ one ( 1) year from the date 0£ election, and thereafter 

members 0£ the Code Authority shall be elected by members of the 

Industry, as provided in Paragraph 2 0£ Subsection (b) 0£ this 

Section, at a meeting called by the Code Authority not less than 

thirty (30) days prior to the expiration date 0£ the current term of 

office of the Code Authority. 4. A vacancy in the membership 0£ the Code Authority shall be 

filled by a majority vote 0£ the remaining members of the Code Authority; provided, however, that the vacancy to be filled shall be 

subject to the provision that at least one member of the Code Au- thority shall be a non-m,ember of the Association of :Manufacturers 

of Metal H ospital Furniture, if such a member is available and 

willing to serve. 

( c) In addition thereto, the Administrator in his discretion may 

appoint not more than three members 0£ the Code Authority, with- out \'Otes, for such terms as he may prescribe. 

SECTION 2. Each trade or industrial association directly or in- directly participating in the selection or activities of the Code Authority shall (1) impose no inequitable restrictions on membership, 

and (2) submit to the Administrator true copies of its articles 0£ 

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 neces- ary to effectuate the purposes of the Act. - ECTION 3. In order that the Code Authority shall at all times 

be truly representative 0£ the Industry and in other respects comply 

with the pro-visions of the Act, the Administrator may prescribe 

uch 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 moclification 0£ the Code Authority. 

ECTION 4. 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 

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 reasonable diligence in the conduct of his duties 

herennder, be liable to anyone for any action or omic:;sion fo act 

under this Code, except for his 01Vn wilful malfeasance or nonfeasance . 

Si:cTIO:N 5. If the Administrator shall at any time determine that 

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

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

may require that such action be suspended to afford an opportunity 

for investigation of the merits of s 1:ch action and further consideration by such Code Authority or agency pending final action which 

shall not be effective unless the administrator approves or unless he 

shall fail to disapprove after thirty (30) days' notice to him of intention to proceed with such action in its original or modified form. 
52 

POWERS AND DTITIES 

SECTION 6. 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 to 

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 addi- tion to information required to be submitted to the Code Authority, 

members of the industry subject to this Code shall furnish such 

statistical information as the Administrator may deem necessary for 

the purposes recited in Section 3 (a) of the Act to such F ederal and 

State agencies as he may designate; provided that nothing in this 

Code shall relieve any member of the Industry of any exjsting obliga -

tions t.o furnish reports to any Government agency. No individual 

report shall be disclosed to any other member of the Industry or 

any other party except to such other Governmental agencies as may 

be directed by the Administrator. (d) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Code Authority 

of its duties or responsibilities under this Code and that such trade 

associations and agencies shall at all times be subject to and comply 

with the provisions hereof. 

( e) To recommend to the Administrator any action or measures 

deemed advisable, including further fair trade practice provisions to 

govern members of the Industry in their relations with each other or 

with other industries; measures for industrial planning, and stabilization of employment; and including modifications of this Code 

which shall become effective as part hereof upon approval by the 

Administrator after such notice and hearing as he may specify. 

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

\Yith the trade practice committees appointed under such other codes 

ns may be related to the Industry for the purpose of formulating fair 

t.rade pra ctices to govern the relationships between employers under 

t.his Code and under such other codPs to the end that such fair trade 

practices m::ty be proposed to the Administrator as amendments to 

this Code and such other Codes. (g) To proYide appropriate fa cilities for arbitrrrtion , a;.1d ~nbjcct 

to the approYal of the Administrator, to prescribe rules of 

procedure n.nd rules t.o effect compliance \Yith a\-v~irds ancl dP- terminations. (h) To make recommendations to the Administrator for the c, ,_ 

ordination of the aclministration of this Code with such other cod 

if any, as may be related to or affect members of the Industry. ECTION 7. 1. It being fonncl necessary in order t o support the 

administrati on of this Code and to maintain the standards of fair 

ompetition established hereunder and to effectuate the policy of the 

Act, the Coe.le Authority is authorized : 
53 

(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 equitable basis upon which the funds necessary 

to support such budget shall be contributed by members of the 

Industry; 

( c) Afrer 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 members of the Industry complying with the Code and contributing to 

the expenses of its administration as hereinabove provided ( unless 

duly exempted from making such contributions), 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, and shall in no event exceed the total amount contained in the approved budget, except upon approval of the Administrator; and no subsequent budget shall contain any deficiency item 

for expenditures in excess of prior budget estimates except those 

which the Administrator shall have so approved. 

ARTIOLE VII-OPEN PRICE FILING 

SECTION 1. Each member of the Industry shall 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 prices, discounts, rebates, allowances, and all other 

terms or conditions of sale, hereinafter in this Article referred to as 

"price terms", which lists shall completely and accurately conform 

to and represent the individual pricing practices of said member. 

Such lists shall contain the price terms for all such standard products 

of the Industry as are sold or offered for sale by said member and for 

such nonstandard products of said member as shall be designated by 

the Code Authority. Said price terms shall in the first instance be 

filed within ten (10) days after the date of approval of this provision. 

Price terms and revised price terms shall become effective immediately upon receipt thereof by said agent. Immediately upon receipt 

thereof, said agent shall by telegraph or other equally prompt means 

notify said member of the time of such receipt. Such lists and revisions, together with the effective time thereof, shall upon receipt be 
54 

immediately and simultaneously distributed to all members of the 

Industry and to all of their customers who have applied therefor and 

have offered to defray the cost actually incurred by the Code Authority in the preparation and distribution thereof and be available for 

inspection by any of their customers at the office of such agent. Said 

lists or revisions or any part thereof shall not be made available to 

any person until released to all members of the Industry and their 

customers, as aforesaid; provided, that prices filed in the first instance shall not be released until the expiration of the aforesaid ten 

(10) days period after the approval of this code. The code authority 

shall maintain a permanent file of all price terms filed as herein 

provided, and shall not de troy any part of such records except upon 

written consent of the Administrator. Upon request the code authoritl shall furnish to the Administrator or any duly designated agent 

o the Administrator copies of any such lists or revisions of price 

terms. 

SECTION 2. When any member of the Industry has filed any revision, such member shall not file a higher price within forty-eight 

( 48) hours. 

SECTION 3. No member of the Industry shall sell or offer to sell any 

products of the Industry, for which price terms have been filed pursuant to the provisions of this article, except in accordance with such 

price terms. 

SECTION 4. No member of the Industry shall enter into any agreement, understanding, combination or conspiracy to fix or maintain 

price terms, nor cause or attempt to cause any member of the industry 

to change his price term.s 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. 

ARTICLE VIII-CosTs AND PRICE CuTTING 

SECTION 1. The standards of fair competition for the Industry 

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

(a) Wilfully destructive price cutting is an unfair method of 

competition and is forbidden. Any member of the Industry or of 

any other 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. The Code Authority shall within 5 days afford 

an opportunity to the member filing the price to answer such complaint and shall within 14 days make a ruling or adjust.m0 nt ther on. 

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

all papers shall be referred to the Research and Plannjng Division of 

N. R. A., which shall render a report and recommendztion thereon to 

the Administrator. 

(b) When no declared emergency exists as to any o-iven product 

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

sound cost-estimating methods should be used and that con ideration 

should be given to costs in the determination of pricing policies. 

( c) When an emergency exists as to any ~iven product, sale below 

the ·stated minimum price of such product 1n violation of Secti n 2 

hereof is forbidden. 
55 

SECTION 2. (a) If the Administrator, after investigation, shall at 

any time find both (1) 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 purposes of the Act, and (2) that the determination 

of the stated minimum price for a specified product within the industry for a limited period is necessary to mitigate the conditions 

constituting uch emergency and to effectuate the purposes of the 

Act, the Code Authority may cause an impartial aaency to investigate costs and to recommend to the Administrator a determination of 

the stated minimumlric~ <?f the product affected by the emergency, 

and thereupon the dmmistrator may proceed to determine ~uch 

stated minimum price. 

(b) 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 

such emergency and to effectuate the purposes of the National Industrial Recovery Act, he shall publi h 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 Admini trator may cause any determinations 

hereunder to be reviewed or reconsidered and appropriate action 

taken. 

SECTION 3. Cost Findilng.-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 herejn contained shall be construed to permit the Code 

A11thority, any agent thereof, or any member 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 pr:ces. 

ARTICLE IX-TRADE PRACTICE RULES 

RULE 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 

member in any way misrepresent any_ goods (including but without 

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

or credit term , Yalues, policies, services, or the nature or form of 

ihe business conducted. 

RULE ?· No _member of t_he In~ustr;y shall knowingly withhold 

from or ms€rt m any quotat10n or invoice any statement that makes 

it inaccurate in any material particular. RuLE 3. o member of the Industry shall 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, quality, quantity, 
56 

origin, size, substance, character, nature, finish, material, content, or 

preparation of such goods. 

RULE 4. No member of the Industry shall defame a competitor by 

falsely imputing to him dishonorable conduct, inability to perform 

contracts, questionable credit standing1 or by other false representation or by falsely disparaging the gracte or quality of his goods. RULE 5. No member of the Industry shall publish or circulate un- justified or unwarranted threats of legal proceedings which tend to 

or have the effect of haras ing competitors or intimidating their 

customers. RULE 6. o member of the Industry shall secretly offer or make 

any payment or allowance of a rebate, refund, commi sion, credit, unearned di count, or excess allowance, whether in the form of money 

or otherwise, nor shall a member of the Industry secretly offer or 

extend to any cu to mer any special service or privilege not extended 

to all cu tomer of the same class for the purpo e of influencing 

a sale. R LE 7. No member of the Industry shall give, permit to be given 

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

rewarding the action of any employee, agent, or repre entative of 

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

the principal of uch agent or the represented party. This provision 

shall not be construed to prohibit free and general distribution of 

articles commonly used for advertising except o far as such articles 

are actually used for commercial bribery as hereinabove defined. RULE 8. No member of the Industry shall wilfully induce or 

attempt to induce the breach of existing contracts between competitors and their cu tomers by any false or deceptive means, or interfere 

with or obstruct the performance of any such contractual dutit's or 

services by any such mean , with the purpo e and effect of hampering, 

injuring, or embarrassing competitors in their business. · 

R LE 9. o member of the Industry shall require that the purchase 

or lea e of any goods be a prerequi ite to the purchase or lr.ase of 

any other good . RULE 10. o member of the Industry shall use or ub titute or 

sell any article or material other than that specified by the purchaser of any product without clearly defining such sub titution . 

RULE 11. o member of the Industry shall imitate or manufacture 

any design, style, work, or brand of any member of the Indu ·try 

which shall have been registered with the A ociation. uch procedure of registration shall be prepared by the Code Authority and 

shall be subject to approval by the Admini trator. 

RuLE 12. o member of the Industry shall fail to put the manufacturer's name or trade n:iark, or other mark of identification, on all 

products manufactured within the Industry. 

ARTICLE X-EXPORT TRADE 

SECTION 1. No provision of this Cod-e relating to prices or terms 

of selling, shipping or marketing, shall apply to export trade or 

sales or shipm nt for export trade. "Export Trade" shall be as 

defined in the Export Trade Act adopted April 10, 1918. 
57 

ARTICLE XI-MODIFICATION 

SECTION 1. This Code and all the provi ions thereof are expre sly 

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

regulation issued under Title I of said Act. 

SECTION 2. Such of the provisions of this Cod a are not required 

to be included herein by the Act may, with the approval of the 

Administrator, be modified or eliminated in such manner as may 

be indicated by the needs of the public, by changes in circumstances, 

or by experience. All the provisions of this Code, unless so modified 

or eliminated, shall remain in effect until June 16, 1935. 

ARTICLE XII-MONOPOLIES, ETC. 

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

ARTICLE XIII-EFFECTIVE DA TE 

This Code hall become effective on the tenth day after its 

approval. 

Approved Code No. 527. 

Registry No. 1121---01. 


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