Registry No. 304-11

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

LADDER MANUFACTURING

INDUSTRY

AS APPROVED ON NOVEMBER 8, 1933

BY

PRESIDENT ROOSEVELT

R

WE DO OUR PART

1.'tecuti Order

2. Letter t Transmittal

3. Code

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1933

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

Printing 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 Post Office Building.

Birmingham, 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, Mich.: 2213 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 Federal Building.

Memphis, Tenn.: 229 Federal Building.

Minneapolis, Minn.: 213 Federal Building.

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

New York, N.Y.: 734 Customhouse.

Norfolk, Va.: 406 East Plume Street.

Philadelphia, Pa.: 933 Commercial Trust Building.

Pittsburgh, Pa.: Chamber of Commerce Building.

Portland, Oreg.: 215 New Post Office Building.

St. Louis, Mo.: 50 Olive Street.

San Francisco, Calif.: 310 Customhouse.

Seattle, Wash.: 809 Federal Building.

(II)
EXECUTIVE ORDER

CODE OF FAIR COMPETITION FOR THE LADDER 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 my approval of a Code of

Fair Competition for the Ladder Manufacturing Industry, and hearings having been held thereon and the Administrator having rendered his report containing an analysis of the said code of fair competition together with his recommendations and findings with respect

thereto, and the Administrator having found that the said code of

fair competition complies in all respects with the pertinent provisions

of title I of said act and that the requirements of clauses (1) and (2)

of subsection (a) of section 3 of the said act have been met:

NOW THEREFORE, I, Franklin D. Roosevelt, President of the

United States, pursuant to the authority vested in me by title I of the

National Industrial Recovery Act approved June 16, 1933, and otherwise, do approve the report and recommendations and adopt the

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

competition be and it is hereby approved.

FRANKLIN D. ROOSEVELT.

THE WHITE HOUsE,

November 8, 1933.

Approval recommended:

HUGH S. JOHNSON,

Administrator.

199C--188-184----88
s.
CODE OF FAIR COMPETITION FOR THE LADDER

MANUFACTURING INDUSTRY

ARTICLE I-PURPOSE

To effectuate the policies of Title I of the National Industrial

Recovery Act, the following provisions are submitted as a Code of

Fair Competition for the Ladder Manufacturing Industry, and upon

approval by the President shall be the standard of fair competition

for this industry.

ARTICLE II-DEFINITIoNs

The term " industry " as used herein is defined to mean the business of manufacturing and selling by such manufacturers, of ladders

and ladder products in the United tates.

The term "member of the industry " includes anyone engaged in

the industry, either as an employer or on his own behalf.

The term "member of the Code" includes any member of the

industry who shall signify assent to this Code.

The term " employee " as used herein includes any person engaged

in any phase of the industry in any capacity in the nature of employee irrespective of the method of payment of his compensation.

The term "employer " as used herein includes anyone for whose

benefit such an employee is so engaged.

The term " institute " means the American Ladder Institute, a

corporation organized under the laws of the State of Ohio, with

its principal office at Cleveland, Ohio, the membership in which is

composed of manufacturers of ladders and ladder products.

The term "ladder products " means scaffolding hangers, trestles, and other similar items used in conjunction with ladders.

The term "The National Industrial Recovery Act" or "The

Act " means the National Industrial Recovery Act as approved by

the President June 16, 1933.

The term "the President" means the President of the United

States.

The term "the Administrator" as used herein means the Administrator appointed by the President under the Act and at the time

in office.

The term "effective date" as used herein means the tenth day

after this Code shall have been approved by the President of the

United States.

The term " Code Authority " means the coumittee appointed to

administer this Code.

(1)
2

AiRriCm III-HouRs

(A) No employee shall be permitted to work in excess of 40

hours in any one week or 8 hours in any 24-hour period; provided,

however, that in peak periods of not more than 8 weeks Auring any

six months, hours may not exceed 48 in any one week, or 6 days per

week. In such cases, one and one third times the regular rate of

pay shall be paid for hours worked in excess of 8 hours per day.

(B) The maximum hours fixed in the foregoing section shall not

apply to employees on emergency maintenance and emergency repair

work, who s all be paid one and one third times the regular rate for

hours worked in excess of 8 hours per day, nor shall it apply to

executives and supervisors receiving $30 per week or more, and outside salesmen when not employed on productive labor.

(C) No employee shall be permitted to work more than six days

in any seven-day period.

(D) No employee shall be classified in any one of the exempted

classes hereinabove defined unless he performs functions identical

with those performed by employees thus classified on June 16, 1933.

(E) Each member of the industry shall elect the date at which

the six months' periods begin, and shall immediately inform the Code

Authority as to the election made. If any member of the industry

does not notify the Code Authority within ten days of the effective

date of this Code, then, in that event, the first six months' period for

such members of the industry shall begin on the effective date of this

Code.

(F) No employee shall work or be permitted to work for a total

number of hours in excess of the number of hours prescribed for each

week and day, whether employed by one or more employers.

ARTICLE IV-WAGES

(A) No employee, except as hereinafter provided, shall be paid at

less than the rate of 35 cents per hour.

(B) Office employees shall be paid not less than $15.00 per week.

(C) Equitable adjustment in all pay schedules of factory employees above the minimum shall be made not later than 30 days from

the effective date by any employers who have not theretofore made

such adjustments, and the first monthly reports of wages required

to be filed with the Administrator under this Code shall contain all

wage increases made since May 1, 1933.

(D) This article establishes minimum rates of pay, regardless of

whether the employee is compensated on the basis of a time rate, piece

rate, or otherwise.

ARTICLE V-GENERAL LABOR PRovIsIoNs

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

industry, nor anyone under 18 years of age at operations or occupations hazardous in nature or detrimental to health.

(B) 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
8

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.

(C) No employee and no one seeking employment shall be required

as a condition of such employment to join any company union or to

refrain from joining, organizing, or assisting a labor organization

of his own choosing.

(D) Employers shall comply with the maximum hours of labor,

minimum rates of pay, and other conditions of employment, approved or prescribed by the President.

(E) Within each State this Code shall not supersede any laws of

such State imposing more stringent requirements on employers regulating the age of employees, wages, hours of work, or health, fire or

general working conditions than under this Code.

(F) Each employer shall post in a conspicuous place in each shop

and office a copy of the labor and administrative provisions of this

Code.

ARTICLE VI-ADINITRATION

To further effectuate the policies of the Act, a Code Authority is

hereby set up to cooperate with the Administrator in the administration of the Code.

A. ORGANIZATION AND POWERS

(1) The Board of Trustees of the American Ladder Institute

together with such representatives as the President or Administrator

may designate pursuant to paragraph (3) of this Section A is hereby

designated as such Code Authority; provided that no inequitable

restrictions upon membership in the American Ladder Institute shall

at any time be imposed.

(2) With a view to keeping the Administrator informed as to

the observance or nonobservance of this Code and as to whether appropriate steps are being taken to effectuate the purposes of the

Act, each member of the Industry shall furnish certified reports to

designated independent agents of the Code Authority when and in

such form as it shall, subject to the approval of the Administrator,

prescribe. If the Code Authority should have reason to believe that

any of the reports submitted are inaccurate, such reports may be

verified by examination of the relevant books and records of the

member of the Industry who has submitted such reports, by a disinterested and impartial agency designated by the Code Authority, with the approval of the Administrator. Such agency must agree

to keep all infor mjation regarding individual manufacturers strictly

confidential, except that any violation of this Code shall be reported

in detail to the Code Authority and to the Administrator.

(3) The President or the Administrator may designate from one

to three representatives who shall thereupon become members of the

Code Authority with all the powers of members of such Code Authority with the exception of the power to vote, and such representative or representatives shall have access to all data and statistics collected by the Code Authority, and hereinbefore provided.

Such representatives shall serve without expense to the Industry,
4

and together with the Administrator shall be given notice of and

may sit at all meetings of the Code Authority.

(4) In addition to information required to be submitted under this

Code, there shall be furnished to Government agencies such statistical

information as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act.

(5) Where the costs of executing contracts entered into in the

industry prior to the approval of this Code by the President are

increased by the application of the provisions thereof, it is equitable

and promotive of the purposes of the Act that appropriate adjustment

of such contracts to reflect such increased costs be arrived at by

arbitration or otherwise, and the Code Authority is constituted as an

agency to assist in effecting such adjustments.

B. PARTICIPATION

Each member of the Code shall be entitled to participate in the

code activities of the Code Authority to the same extent as a member

of the American Ladder Institute. Each member of the Code shall

contribute his proportionate share toward the cost of preparation and

administration of the Cod, including the cost of the assembly and

analysis of such reports an data as may be required under the Code

and the cost of maintenance of the administrative agency and its

activities, either by becoming a member of the American Ladder

Institute or by paying to the Institute amounts equal to such portion

of the dues from time to time required of members of the Institute

in like situation as is used to defray the expense of administration

of the Code.

0. CLASSIFICATION OF CUSTOMERS

In order to provide for the orderly distribution of ladders and

ladder products, the trade shall be divided into the following classifications, based upon differences in cost and services rendered. The

customers falling within each classification shall receive such trade

discounts from ist prices as shall be independently filed with the

Code Authority by the individual members of the industry.

(1) Conuner.-A consumer shall be defined as a buyer of ladders

or ladder products substantially all of which are purchased for his

own use and not for resale.

(2) Retailer.-A retailer shall be defined as a buyer of ladders or

ladder products who buys to resell and whose business is designed for

and built upon the selling of goods to consumers.

The following classes of retailers may be distinguished from regu- lar retailers for the purpose of establishing prices and/or discounts:

Mail-order houses, chain stores, department stores, cooperative association of dealers and mill supply dealers.

(3) Jobber.-A jobber shall be defined as a buyer of ladders or

ladder products who buys to sell to retailers, and who carries a repre- sentative stock of ladders, and whose salesmen operate in the territory served by such jobber for the purpose of selling to retailers.

On the basis of the foregoing definitions, the Code Authority

may prepare a list of jobbers for distribution to all known members

of the industry. Each member of the industry shall thereupon sub-
mit to the Code Authority for inclusion on such list the names of

customers whom he believes qualify as jobbers. The Code Authority

shall add to the list those names submitted which it finds qualified as

obbers under paragraph (3) of this section C. Such final list of

robbers shall be a prima facie accurate and complete list of such

persons as conform to the definition of jobber in said paragraph (3).

Such list of jobbers shall be kept current by the Code Authority;

and each member of the industry shall continue to report the names

of any new customers whom he believes qualify as jobbers.

(5) In the event that a question arises regarding the proper classification of any customer or prospective customer, the decision of

the Code Authority, subject to review by the Administrator, shall

be prima facie correct.

(6) If the foregoing classifications of customers, or any application thereof, should bear unjustly upon any individual customer or

member of the industry, such customer or member of the industry

may appeal to the Code Authority, subject to review by the Administrator, or direct to the Administrator which, after investigation,

may provide for such exemption or modification as justice and convenience may require. In the interim between such appeal and the

ruing of the Code Authority or Administrator, the classification

in 6efct at the time of such appeal shall continue in effect.

D. COST AND PRICE-LIST PROHIBITIONS

No member of this industry shall sell or exchange any ladders or

ladder products at a price or upon such terms and conditions as will

result in the customer paying for such goods less than the delivered

cost to the seller as determined by a uniform cost accounting system

to be set up by the Code Authority, subject to the approval of the

Administrator, except as hereinafter provided.

The Code Authority shall promptly cause to be developed and

submitted to the Administrator a uniform system of cost accounting

designed to make possible the accurate determination by each member of the industry of his own individual cost.

Upon approval by the Administrator of such system of cost accounting, complete advice concerning it shall be distributed by the

Code Authority to all members of the industry. Thereafter no member of the industr shall sell or exchange any ladders or ladder

products at a price below his own individual cost, exceptto meet a lower price previously quoted or posted by a competitor. If such member believing that such competitor is selling

in violation of the Section, has complained to the Code Authority or to a properly authorized agency thereof, such mnemnber may meet the price of such competitor as aforesaid, only

pending action upon such complaint.

In the interim between the effective date and the date the Code

Authority directs that the uniform cost-accounting system be placed

in use, no member of the industry shall sell his ladders or ladder

products at a price less than his individual cost as determined by

such cost system or method of determination of costs as is being used

by him at the time the Code becomes effective, except as hereinbefore

provided.
6

Since it has been the general recognized practice of the industry

to sell products on the basis of printed price lists with discount sheets

distributed to the trade, each member of the industry shall, within

ten days of the effective date of this Code, file with the Code Authority price lists and discount sheets, showing his current prices

and discounts to the various classes of customers as hereinbefore defined. Revised price lists and discount sheets may be filed from time

to time thereafter with the Code Authority by any member of the

industry, to become effective upon a date specified by such member

of the industry, which date shall not be less than ten days after the

filing of such revised prices at the office of the Code Authority.

Copies of such revised prices, with notice of the effective date, shall

be immediately sent to all known members of the industry, who may

file, if they so desire, revisions of their price lists and/or discount

sheets, which, if filed not less than five days previous to such effective

date, shall take effect upon the date when the revised price list or

discount sheet first filed shall go into effect.

No member of the industry shall sell or exchange any ladders or

ladder products at prices lower or discounts greater or on more

favorable terms than the schedules of such member on file at the

office of the Code Authority as hereinbefor' provided.

The operation of the foregoing provisions shall at all times be

subject to the approval of the Administrator.

E. TRADE PRACTICES

The following shall be considered as unfair methods of competition in this industry:

(1) The defamation of competitors by imputing to them dishonorable conduct, inability to perform contracts, questionable credit

standing, or other misrepresentations.

(2) Enticing away the employees of competitors with the purpose

and effect of hampering, injuring or embarrassing competitors in

their business. However, nothing Aerein contained shall prevent employees from seeking employment with other concerns.

(3) Any wilful attempt to induce a breach of any existing bona

fide contract or any wilful attempt to prevent the performance of

any contractual duty under any bona fide contract for the purchase

or sale of ladders or ladder products.

(4) The entering into contracts for ladders or ladder products

with purchasers without actual obligation on the part of the purchaser for a specified quantity or quality and/or merely for the purpose of securing to the buyer a special price which in effect discriminates between purchasers and tends to unreasonably restrain trade

and injure competitors.

(5) The delivery of ladders which do not reasonably conform

with the standard of samples submitted or representations made

prior to securing the order, unless with the consent of the purchaser

to a substitution prior to shipment.

(G) The entering into contracts which permit the buyer to cancel

or provide for a reduced price in the event of a market decline and

which (do not permit the seller to cancel or provide for an enhanced

price in the event of a market rise.
7

(7) Withholding from, or inserting in the invoice, anything which

makes the invoice a false record, wholly or in part of the transaction

represented on the face thereof.

(8) The payment or allowance of secret rebates, secret refunds,

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

otherwise; or the acceptance of securities at more than the true

market value as a means of effecting or concealing price discrimination.

(9) False statements, written or oral, concerning competitor's

goods, or deceptive tests, or any act constituting a false statement

as to the prices a competitor is quoting.

(10) The giving or offering to give, directly or indirectly. without other consideration therefor, money or anything of value to

agents, employees, or representatives of customers or prospective customers, as an inducement to cause them to purchase or to contract for

the purchase of ladders or ladder products from the maker of such

gift or offer, or the selling or offering to sell other products at less

than cost as an inducement to obtain the ladder business of such

customers, or to influence them to refrain from dealing or contracting to deal with competitors. No allowances or payments shall be

made to customers to cover advertising.

(11) The false marking or branding of ladders or ladder products

or any misrepresentation in connection with the advertising or sale oy

such items for the purpose of misleading purchasers.

(12) The making of false reports of capacity, production, costs, sales, orders, or shipments.

ARTICLE VII-GENERAL

(1) Such of the provisions of this Code as are not required to be

included therein by the National Industrial Recovery Act may, with

the approval of the President, be modified or eliminated as changes

in circumstances or experience may indicate. It is contemplated that

from time to time supplementary provisions to this Code will be

submitted for the approval of the President to prevent unfair competition in price and other unfair and destructive competitive practices and to effectuate the other purposes and policies of Title I of

the National Industrial Recovery Act consistent with the provisions

thereof.

(2) The Administrator shall have the right, on review, to disapprove or modify any action taken by the Code Authority. (3) Violation by any member of this industry of any provisions of

this Code is an unfair method of competition, and the offender shall

be subject to the penalties imposed by this Act.

(4) This Code and all the provisions thereof are expressly made

subject to the rights of the President, in accordance with the provisions of Subsection (b) of Section 10 of the National Industrial

Recovery Act, from time to time to cancel or modify any order, approval, license, rule, or regulation issued under Title I of said Act, and specifically, but without limitations, to the right of the President to cancel or modify his approval of this Code or any conditions

imposed by him upon his approval thereof.

0
4

UNIVERSITY OF FLORIDA

3 1262 08582 8142