Approved ode No. 386 Regi try No. 1114-30 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

UMBRELLA FRAME AND 

UMBRELLA HARDWARE 

MANUFACTURING INDUSTRY 

AS APPROVED ON APRIL 6, 1934 

WE DO OUR PART 

u 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the uperinlenden t of Documents, \\'asbin2ton, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government, 

Prihlting Office, Washington, D.C., and by district offices of tlle Bureau of 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Buildiug. 

Birm;ngl1am, Ala.: 257 Federal Building. 

Boston, Mass. : 1801 Customl1ouse. 

Buffalo, N.Y.: Chamber of Commer ce Building. 

Charleston, S.C. : Chamber of Commerce Duilc.ling. Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Dnildin~. 

Indianapolis, Incl. : Chamber of Commerce Builuing. 

Jacksonville, Fla.: Chamber of Commerce Building. 

K ansns City, l\lo.: 1028 Baltimore Avenue. 

Los Angeles, Calif. : 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

Memphis, Teun. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk. V~.: 406 East Plume Street. 

Philadelphia, Pa. : 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

Snn Francisco, Cal "f.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 386 

CODE OF FAIR COMPETITION 

FOR THE 

UMBRELLA FRAME AND UMBRELLA HARDWARE 

MANUFACTURING INDUSTRY 

As Approved on April 6, 1934 

ORDER 
180 

the National Recovery Administration, is completed; provided, further, that Section 1, Article VI be deleted and the following substituted therefor : 

"SECTION 1. There shall forthwith be established a Code Authority 

consisting of six ( 6) members. 

"Three (3) to be elected by members of the As ociation; two (2) 

to be elected by members of the Industry who are not members of 

the Association. In the event that either group fails to elect their 

members to the Cod Authority, the Administrator shall, not later 

than ten (10) days from the approval of the Code, make such 

appointments, to fill the vacancies; the sixth (6th) member is to he 

unanimously elected by the five ( 5) aforementioned members. In th~ event the five ( 5) members so elected or appointed ha ll fail to 

agree on the sixth (6th) member as set forth, the Adm.inistrator 

shall not later than thirty (30) days after the approval of the Code 

make such appointment to complete the Code Authority. In addition 

to the membership as above provided, there may be not to exceed 

three (3) members to be appointed by the Admini trator, without 

vote, to serve a period of s1x (6) to twelve (12) months; provided, 

further, that the continued participation of the National Association 

of Umbrella Frame and Umbrella Hardware .1\-fanufacturers in the 

Code Authority after thirty (30) days from the effective date of 

t his Code, shall be contingent upon it amending its Constitution 

and By-Laws to the satisfaction of the Administrator." 

HuGH S. JoHNSoN, 

Administrator for I ndu8trial Recovery. 

Approval reconunended: 

A: R. GLANCY, 

Division Administrator. 

wASHINGTON, D .C., April 6, 1934. 
REPORT TO THE PRE !DENT 

The PRE IDEXT, 

The lVhit House. 

IR: Thi i a. report on the ode of Fair Competition for the 

mbr lla Frame and Umbrella Hardware :Manufacturing Industry, 

the h aring having been conducted thereon in Washington, D.C., on 

J anuar r 30 1934, in accordance with the pro vi ion of the National 

Indu trial Recovery Act. 

RESUl\i : OF CODE A TO HOUR AND WAGES 

Thi ode pro' ides that eight (8) hours shall constitute the normal 

number of working hour per day, forty (40) hours the normal 

m.m1ber of working hours per week, except that employees may work 

up to fort) -eight ( 48) hours per week for a period not exceeding 

ix (6) "\\eeks during a peak period of September 1, to December 31. 

The e provision are applicable to all employeel:l except traYeling 

sale men· watchmen, who shall be permitted to work not exceeding 

thirty- ix (36) hour per ''eek and forty-eight ( 48) hour: per week 

in alternate week nor more than an average of forty-two ( 42) hours 

p r eek in any two week 1 eriod; and per ·ons employed in a managerial or exe utive ·apacity receiving not les · than $35.00 per week. 

Th aboYe mentioned hour limitation shall not apply to any employ in mera ncy maint nance or emergency repair "ork involving 

breakd wn or prot ction of life and property. 

The rate of pay provided for pr duction labor are 40 per hour 

for both men and 'vomen. Learner may be paid 80 ;1( of the wages 

her in provided to be paid but the number of learner. luring any 

·alendar month hall not x ·e d 5% of the total numb r of factory 

empl y ' . P r on who e earning capa ·it) i limited becau e of 

a a pl ·:ical r m ntal handi ap or oth r infirmity~ may be mploye l on li ht work at a wag 1 1 w the minimum, if th emJ lo) r 

obtain fr m the tat authority, de ignated by the United tates 

D p:ntment of Labor, a certificat authorizing u h I er on. empl r_ 

m nt at uch wage and for , u h hour a.- shall be . tat l in the. 

rtifi at . Tim an l one-half will be paid production em I l r es 

for hour. work d in ex e of th numb r f hour pecifie l hereinab ll oth r employee. · will b paid at not I thai lG.O per 

w k :x · pt that ofli · hoy. may b paid not l , than .'13.0 1 er 

"W k pr vi l 1 hat th numb r of uch office bo ' hall constitnte 

n t m r than 7'£ of th t tal numb r of offi e mr lo ' e of any 

on empl y r, but in an a · a ·h mploy r hall b ntitled to 

an offi. bo r. 

Equitable adju. tn nt ar to b ma 1 of all wao·e rat above 

aid minima. 

hild Lab r i pr hibit d an n per n un l r 1 y ar of age ·hall b empl y d in a hazar lou o upation. 

(181) 
182 

GENERAL STATEMENT 

The Umbrella Frame and Umbrella Hardware Industry as defined 

in the Code includes the manufacture and sale of Umbrella Frames 

and Umbrella Hardware, and its customers are confined to the 

various umbrella manufacturers of the country. 

The inYestment in the Industry is approximately $3,500,000 and 

the number of wage earners in normal times is about 600 people, 

with an estimated annual payroll of $500,000. 

In 1929, which is considered a normal year, operations were at a 

rate of approximately 60% of capacity, with a value of production 

of about $1,324,000. The sales of the Industry declined 46 % from 

1929 to 1933. · 

I believe that the Code is fair to Industry, to Labor and to the 

Public, and is in accordance with the intent and purpose of the 

National Indu trial Recovery Act. 

FINDINGS 

The Assistant Deputy Admini. tl·ator in his final report to me on 

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

the proceedings in this matter: 

I find that: 

(a) Said Code is well designed to promote the policies and pur- poses 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 pro- vide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and management 

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

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

required), by increasing the consumption of industrial and agricultural products through increasin.9· purchasing 1 ower, 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 n.s a major industry. 

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

Subsection (b) of Section 10 thereof; and that the applicant group 

is an indu trial group truly representative of the aforesaid Industry; 

and that aid group 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. 
183 

I hu ,. a1 pron' 1 thi 

vi 1 1 h w v r that the ron lOll · f Article VII, ( ti n 1) 

in ofar a they pre cribe a \Yaiting p riocl b tw en the filing with 

od uthori ty and the :ff cti Ye date f r 'i l pri li ts or revi eel 

term· and concliti n of al be and they ar hereb ta) ed pending 

m.' further order either within a period of sixty da from the 

cffccti e date of thi Code or after the compl tion of a study of op n 

price a ociation now being onducted by the National RecoYery 

Admini tration · provided further tl at Bection 7 Article IV be 

leleted from th ode; proYi led further, that Section 7, Article V, 

be and i her b ' ta} eel pending m; further order either within a 

1 eri d of ixty lay from the e:ffectiYe date of thi · Code or after a 

<:Ompl tion of tudy of home,vork provi ion now being conducted 

b · the National RecoYery \._ lmini tration; proYided, further, that 

'e ·tion 10 Article VI, be and i hereby stayed pending my further 

order, and/ r until a study of in ignia provi ions, now being condu ·ted by the National Recovery Administration, is completed; 

provided further that Section 1, Article VI be deleted and the 

following ub tituted therefor: 

ECTION 1. There hall forthwith bee tabli heel a Code Authority 

con i ting of ix ( 6) member . 

"Three (3) to ~ elected by members of the As o ·iation; two (2) 

to be elected by member of the Indu try who are not member of 

the As o ·iation. In the e\ ent that either group fails to elect their 

membe·rs to the Code Authority, the Administrator shall, not later 

than ten (10) days from the approval of the Code, make uch appointment to fill the Yacancies; the ixth (6th) member is to be 

unanimou ly elected by the five ( 5) aforementioned member . In 

the eYent the five ( 5) members so elected or appointed shall fail 

to agree on the sixth (6th) member a set forth the Admini ·ti·ator 

shall not later than thirty (30) days after the approval of the Code 

make uch appointment to complete the Code Authority. In addition to the member hip as above provided, there may be not to 

exceed three (3) members to be appointed by the Administrator, 

without vote to serve a period of six ( 6) to twelve ( 12) month ; 

provided further, that the continued participation of the N abonal 

A ociation of Umbrella Frame and Umbrella Hardwar l\1anufactur r in the ode Authority after thirty (30) days from the effective date of thi Code shall be contingent upon its amendinO' it 

on titution and By-Law to the ati ·faction of the Admini trator.' 

R pectfully, 

H GH s. J HN ON 

Ad 1nin istrator. 

ArruL 6, 1934. 
CODE OF FAIR COMPETITION FOR THE UMBRELLA 

FRAME AND UMBRELLA HARDWARE MANUF ACTURING INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are establish d as a Code 

of Fair Competition for the Umbrella Frame and Umbrella Hardware Manufacturing Industry, and shall be the standard of f air 

competition for this Industry, and shall be binding upon every 

member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "The Industry" means and includes the 

business of manufacture and sale by the manufacturer of umbrella 

frames and umbrella hardware and excludes the busine s f mere 

as embling and/or jobbing. A "Member of the I ndustry " within 

the meaning of this Code includes, but without limitation, any person, firm, or corporation or other form of enterprise manufacturing 

umbrella frames and umbrella hardware. 

SECTION 2. The terms "President ", "Act", and "Admini tl·ator ", 

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

Title I of the National Industrial Recovery Act, and the Administr·ator for Industrial Recovery. 

SECTION 3. The term "Association" means the National As ociation of Umbrella Frame and Umbrella Hardware J\1anufacturers. 

SECTION 4. The term "Employee" as used herein, includes any 

person engaged in any phase of the Industry in any C<lpacity, irrespective of the method of the payment of such person's wages. 

SECTION 5. The term " Employer", as used herein includes anyone 

by whom any . uch employee is compensated or employed. 

SECTION 6. The term "Code Authority", a· used herein mea,ns 

the group or its successors as provided for by Article VI. 

SECTION 7. The term "Effective Date of the Code ', whenever 

used herein, means the fir t Monday after the date on which this 

Code shall have been approved by the Administrator. 

ARTICLE III-HouRs 

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

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

(a) During the period of September 1 to December 31, a member of the Industry may extend the hourly schedule of work for 

employees up to forty -eight ( 48) hours per week for a period not 

exceeding six ( 6) week provided that all such employees be paid not 

less than one and one-half (11;2) times their normal rate of wages 

(184) 
185 

for hour work d in x e f forty ( 40) hours p r ~ k or eight 

( ) h ur,s p r day. 11 such p cial a es of overtime work shall 

fir b rep r t the ode Authority. 

E TI :N ~. I on employ d in leri al or office work shall be 

p rmitt d o work in esc of forty (40) hour in any one week, 

or io-ht ( ) honr in anv twenty-four (24) hour period. 

E TI ~ 3. Th proYi ·1 n. of thi rticle hall not ar I ly to p rm1lo d in a manao- rial or ex cutive capacity wh earn not 

han thirt --fiY ( l•· :5 .00 dollar per w ek, or to trav-eling 

sal m n. 

(a) Th maximum hours fixed in Sections 1 and 2 hall not apply 

to an " empl 'ee on mergenc maint nance or emerg ncy repair 

work itnyolvin~ br akdown or protection of life or property, but in 

any uch p cial ca e at lea t one and one-half (11j2 ) times his or 

her normal rate shall be paid .for hours worked in exce s of the 

rna. -imum her in provided. 

SE TION 4. The provision of this Article shall not apply to watchmen who hall be employed alternately, and who shall not work or 

be pennitted to work in excess of thirty-six (36) hours per week, 

and forty-eio·ht ( 4 ) hour per week in alternate weeks, nor more 

than an average of, forty-two (42) hours per week in any two weeks 

period. 'E TIO~ 5. No employer hall lmowingly permit any employee 

to work for any time, which totaled with that already performed 

with another employer or mployers in this Industry, exceeds the 

maximum p rmitt d herein. 

ARTICLE IV-WAGES 

E TIO~ 1. ~ employee hall be paid le s than at the rate of forty 

( 40) cents per hour except as herein otherwise provided. 

(a) o clerical or office employee hall be paid less than at the rate 

of sixteen ( 16.0 ) dollar per week, provided, however, that office 

boy hall be paid not less than thirteen ($13.00) dollars per week, 

an proYidecl further~ that the number of such office boys shall consitu not more than .five (5%) per cent of the total number of office 

employ of any on employer, but in any ca e each employer shall 

b entitl d to one offic boy. 

ECTION 2. Thi Article e tablishes a minimum rate of pay irre1 e ·tiY of wh ther an em loy e is actually compen ated on a time 

rat 1 pi ce '" rk or ther ba i . 

CTION 3. Equitable adju tment of ompen ation of employ('es 

r ivinO' mor than tl minimum rates of pa r herein pr scribed shall 

be ma by all mplo r rs who huv not h retofore mad such adju tm nt and all mrloy rs shall within thirty (30) days aft r appro al 

of thi. C d r port in full to th Co ~e 1thority con rnino- u h 

a ju. tment wh tlwr made pri r to or ub qu nt to su h approYal, 

pr \id h w Y r. that in no v nt shall hourly or w cldy rates of 

pay be re u e 1. ~ 'E TIO. , 4. Fem 1 empl p rforming ub tantially he same 

w rk a mal m1loye . hall r · i e the m rate of pay as male 

empl yce · and wh r they i ·place men, th y hall re i e th ar e 

rat of earnings a th men th y di ·place. The ode Authority 
186 

shall within ninety (90) days after the effe tive date of this Code 

file IYith the Administrator a description of all occupations in the 

Industry, indicating the number and sex of the employees in each 

occupation. 

SECTIO~ 5. 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 employed by him, 

showing the wages paid to, and the maximum hours of work for such 

employee. 

SECTION 6. No provision in this Article shall modify e tabli:hed 

practices or privileges as to vacation periods, leaves of absence or 

temporary absences from work heretofore granted to office employees. 

SECTION 7. Learners, who are hereby defined to be persons having 

less than six (6) weeks of experience in the Industry, may be paid 

eighty ( 80% ) percent of the wage herein provided to be paid, 

provided, however, that the number of learners during any calendar 

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

factory employees.1 

ARTICLE V-GENERAL LABOR PROVISIONS 

RECTI ON 1. In compliance with Section 7 (a) of the Act it is 

proYided : 

(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 refrain from joining, organizing, or assisting a labor organization of his own choosing; 

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

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

approved or prescribed by the President. 

SECTION 2. No person under eighteen ( 18) years of age shall be 

employed in this Industry except office employees who shall be not 

less than sixteen (16) years of age. In any State an employer shall 

be deemed to have complied with this provision as to age if he shall 

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

in such State empowered to issue employment or age certificates or 

permits showing that the employee is of the required age. 

SECTION 3. No employer shall reclassify em.ployees or duties or 

occupations performed or engage in any other subterfuge for the 

1 Deleted. See paragraph 2 of order approving this Code. 
187 

purpo of d feating the purpo e or provi ion f th Act or of this 

Cod. 

ECTI N 4. Every empl er l all provi] for the afety and h alth 

of emplo · durino- tl h ur and at the plat:e of their employm nt. 

Stand rd of afety an health hall be ~ubmitt~d by the ode 

Authority to the Admini 'ira or within ix ( 6) month after the 

effe ti - date of the Cod . SE TI N 5. No provision in this Code sh.all super ede any State 

or Fed rallaw which impo e upon employers more stringent requirement. a to age of employ e , wages, hours of work, or as to safety, 

health, anitary or general working conditions, or insurance, or fire 

prot ction than are imposed by this Code. 

E J. 6. All employers hall post complete copies of this Code 

'in con picuous places accessible to .all employees. 

SEcTI N 7. No hmn work shall oo allowed. 

ARTI LE VI-ADM:INISTRA TION 

SECTION 1. There shall forthwith be established a Code Authority, 

con j ting of se en (7) mem.ber ; four ( 4) to be elected by members 

of the A ociation, two (2) to be elected by members of the Industry 

who are not member of the Association, and the seventh (7th) to be 

elected by the six ( 6) aforementioned members, provided, that the 

method of election shall be subject to the approval of the Administrator. In the event the six (6) so elected members shall fail to 

agree on the seventh member a set forth, the Administrator shall, 

not la r than thirt (30) days after the approval of the Code make 

su h ap ointment to complete the membership of the Code Authority. In addition to membership as above provided, there may be 

not to exceed three ( 3) members of the National Recovery Administration without vote, to be appointed by the .Administrator, to serve 

a period of ix (6) to tw lve (12) months.

2 

SECTI ~ 2. The A o iation participating in the selection or activi ie of the Code Authority shall (1) impose no inequitable restriction on memb€rship, and (2) ubmit to the Admini trator true 

copie of it articles of as ociation, by-law , reQ'Ulation , and any 

amendment when made thereto too-ether with such other information a to m mb r h:p rganization and activities as the Administrator may de m ne "' ry to effectuate the purposes of the Act. ~ 'TI N 3. In ord r that the Code Authority hall at all times 

be truly repr ntativ of the Indu try and in other re p ts comply 

with the .Pr vi. ion of the Act the Admini trator may provide 

such h armg a he rna. d m proper; and thereafter, if he shall 

find that the ode Anthority is not truly r pre ntative or does 

not in tl r r pect: omply with the rovi ion. of th A t, may 

requjre an appr priate modifi ation i the m thod of 1 tion of 

th \ uthority. 

E THL 4. i\1 nll cr.· of th nclu. tr. r hall e ntitled to participate in ·1nd har the be dit. · f th a tiviti of the o c uthor]ty 

and t parti ·ipate in the · l tion of th n mb r ther of b a. enting t and mplyin with th requiren nt · of his od 'an u -

taining h ir r asonab1e ·h r £ tl e exp n · of it admini tration. 

2 ee paragraph 2 of order avprovin tbl oue. 
188 

Such reasonable share of the expenses of administration shall be 

determined by the Code Authority, subject to review by the Administrator, on the basis of volume of business andjor such other 

factors as may be deemed equitable. 

SECTIO- 5. In order to assist in making effective the reports from 

the Industry and in eliminating unfair competition, the Code Authority may make studies for the establishment of classifications and 

standards of quality for products o.f the Industry, to be submitted 

to the Administrator, and after approval by him, such classifications 

and standards of quality, shall be observed by all members of the 

Industry. 

SECTION 6. The Code Authority shall have the following further 

powers and duties: 

(a.) To collect from the members of the Industry through an impartial agent with full protection to each member as to the confidential nature of the material all data and statistics required by the 

Administrator or pertinent to the effectuation of Title I of the N ational Industrial Recovery Act and said agent shall compile the 

data and statistics and furnish the Code Authority summaries 

thereof, which shall be furnished to the Administrator and to the 

members of the Industry, all in such form and manner as the Code 

Authority shall rea onably prescribe subject to the approval of the 

Administrator. 

(b) In addition to information required to be submitted to the 

Code Authority, all or any of the persons subject to this Code, shall 

.furnish such statistical information as the Administrator may deem 

necessary for the purposes recited in Section 3 (a) of said Act to 

such Federal and State agencies as the Administrator may designate; 

nor shall anything in this Code relieve any person of any exi ting 

obligation to furni h report to Government agencies. 

(c) To represent the Industry in conference with the Administrator with respect to the application of this Code and of said Act, and 

any regulations issued thereunder. The Administrator may designate representatives to participate in such conferences, who shall 

have acces.s to all data and statistics collected by said agent as above 

provided. The Code Authority or its authorized committee or 

agency shall hold itself in reaclines to assist and keep the Administrator fully advised, and to meet with the Administrator's representative from time to time as required to consider and study any 

~uggestion or proposals presented upon behalf of the Admini h·ator 

or any member of the Industry regarding the operation, observance, 

and administration, or otherwise, of this Code. 

(d) To receive complaints of violations o.f this Code, make investigation thereof, provide hearings thereon and adjust such complaints, 

and bring to the attention of the Administrator for prosecution, 

recommendations, and information relative to unadjusted violations. 

(e) To initiate, consider and make recommendations for the modification or amendment of this Code. 

SECTION 7. The Code Authority shall use such 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 
189 

agencies shall at all times be subject to and comply with the provisions hereof. 3 

ECTION 8. To secure from members of the Industry an equitable 

and proportionate payment of the reasonable expense of maintaining 

the Code Authority and its activities. ECTION 9. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor 

shall any mem.ber 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 Au· 

thority, exercising reasonable Jiligence in the conduct of his duties 

hereunder be liable to anyone for any action or omjssion to act under 

this Code. except for his own willful misfeasance or non-feasance. 

SECTION 10. All products· manufactured and sold subject to the 

provisions of this Colle shall bear the N.R.A. insignia to symbolize 

to purchasers of said products the conditions under which they were 

manufactured. The Code Authority shall h:-tve the exclusive right 

in tllis Industry to issue and furnish said insignia to membe1~s 

thereof. The Code Authority, subject to the approval of the 

Administrator, shall establish such rules and regulations and such 

appropriate machinery as are necessary for the issuance of such 

insignia and shall also provide in these rules and regulations for the 

inspection. examination, and supeiTision of the practices of employers 

using such insignia as to ob3ervance of the provisions of this Code 

for the purpose of ascertaining the right of said employer to the 

continued use of said insignia, of protecting purchasers in rel:ying 

on said insignia and of insuring to each individual employer that 

the symboli~m of said insignia will be maintained by virtue of compliance with the practices herein contained and by all employers 

in the Industry. The right to the continued use of said insignia 

hall not be withdrawn by the Code Authority except upon approval 

by the Administrator. The issuance, withdrawal, and charge made 

for snch insignia by the Code Authority shall at all times be subject 

to supervision and order of the Administrator, and the cha rge made 

therefor shall be not more than an amount necessary to cover the 

actual reasonable cost thereof, including actual printing, distribution, 

and administration and supervision of the use thereof as herein above 

set forth, and in no event to be in excess of one (1¢) cent each. 4 

SECTIO~ 11. If the Administr:1tor shall determine that any action 

of a Code Authority or. any agency thereof is unfair or unjust or 

contrary to the public interest, the Administrator may require that 

uch action be suspenrled to afford an opportunity for inYestigation 

f the merits of such action and further consideration by such Code 

Authority or agrncy pending final action, which shall not be effec· tive unless the Administrator approves or unless he shall fail to disapprove after thirty (30) clays' notice to him of intention to proceed 

with such a.ction in its ori2:ina l or modified form . 

... rn ICLE YII-PmcEs _, xo TEn~rs OI·' PAY:'.IENT 

ECTIO~ 1. Each member of the Industry shall within ten (10) 

davs after the (:'ffectiYe date of this Code file with the Code Authority 

• See para~mpb 2 of order approving this Code. • o:::ee pa rag raph 2 of order approving this Coue. 
190 

a price schedule which shall be open to all buyers and clearly show 

pri ces for each commodity, produced by him or it including discounts, allowances, and all terms and conditions o:f sale. Thereafter 

each member of the Industry shall at all times maintain on file with 

the Code Authority current price schedules for each commodity, provided, ho11ever, revised price schedules may be filed from time to 

time thereafter by any member of the Industry to become effective 

ten (10) days thereafter. Members of the Industry shall not sell 

commo lities at prices other than those shown on the latest price 

schedule so filed. 5 

SECTION 2. The Code Authority shall cause to be :formulated an 

accounting system and methods of cost finding and/or estimating 

capable of use by all members of the Industry, subject to the approval of the Administrator. After such system and methods have 

been formulated, full details concerning them shall be ·made available to all members. Thereafter all members shall determine and / or 

estimate co ts in accordance with the principles of such methods. 

SEcTioN 3. When the Code Authority determines that an emergency exists in this Industry and that the cause thereof is destructive 

price cutting such as to render ineffective or seriously endanger the 

maintenance of the provisions of this Code, the Code Authority may 

cau e to be deter-mined the lowest reasonable cost of the product of 

this Industry, such determination to be subject to such nqtice and 

hearing a the Administrator may require. The Administrator may 

approve, disapprove, or modify the determination. Thereafter during the period of the emergency, it shall be unfair trade practice for 

any member of the Industry to sell or offer to sell any product of 

the Industry for which the lowest reasonable cost has been determined, at such prices or upon such terms or conditions of sale that 

the buyer will pay less therefor than the lowest reasonable cost of 

such product. 

When it appears that conditions have changed, the Code Authority, 

upon its own initiative or upon the request of any interested party, 

shall ca u e the determination to be reviewed. 

ARTICLE VIII-UNFAIR METHODS oF CoMPETITION 

SECTION 1. For all purposes of this Code the acts described in 

this Article . hall constitute unfair trade practices. Any member 

of the Indu try. who shall, directly, indirectly, or through any 

officer, employee, agent or representative, knowingly use, employ, 

or permit to be employed any of such unfair practices shall be 

guilty of a violation of the Code. 

(a) No member of the Industry shall give, permit to be given, or 

directly offer to give anything of value for the purpose of influencing or rewarding the action of any employee, agent, or representative of another in relation to the business of the employer of such 

employee, the principal of such agent, or the represented party without the knowledge of such employer, principal, or party. The 

foregoing provisions shall not be construed to prohibit free and general distribution of articles commonly used for advertising except 

1 See paragraph 2 of order approving this Code. 
191 

so far as such articles are a tually u ed for commercial bribery 

as herein defined. 

(b ) No member of the Industry shall attempt to induce the breach 

of an exi ting contract between a ompetitor and his employee or 

cu tomer or ource of supply; nor hall any su h member interfere 

with or ob truct the performance of such contractual duties or service . othino- in this Rule hall qualify Section 7 (a) of the Act, 

or ob truct the free exercise of the rights of collective bargaining 

therein guaranteed. (c) No member of the Industry shall secretly offer or make any 

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

or otherwi e, for the purpo e of influencing a sale, nor shall a member secret! extend to any customer any special service or privilege 

no extended to all ustomers of the same class. 

(d) No member of the I ndustry shall defame his competitors by 

fal ely imputing to them dishonorable conduct, inability to perform 

contract questionable credit standing, or by any other false representation, or the false disparagement of the grade or quality of their 

good . (e) No member of the industry shall make fal e reports to cus- tomer concerning the capacity, production, inventories, sales orders 

or hipmcnt~ of other l\1embers of the Industry. 

(f) No member of the Industry shall make or give to any purcha er of an3 product any guaranty of protection in any form 

again t the decline in the market price of such product. 

( o·) K o member of the Indu try shall hip good on con ignment, r employ any mean directly or indirectly by subterfuge 

or other-n·i e to defeat the intent of this paragraph. 

(h) No member of the Industr sha ll mark, brand or pack an 

product in any manner which has the tendency to mi lead or 

deceiYe u tomer or prospective cu tomer · a to the brand, o-racle, 

quality, iz quantity origin material content, or preparation of 

any produ t of the Industry old or offered for sale. 

(i) No member of the Indu try hall ·tate in the invoice of any 

produ t a the date thereof a date other than the actual date of the 

hiJ ment of ·nch product or of th Ol'io·in~l contract of ale. 

(j) To m mber of the Indu try hall aiel or ab t any per on finn, 

association or corporation to u e any unfair trade practice. 

ARTI LE IX-l\1omFr .\TION 

E TTO ... ' 1. Thi ode and all th I ro' i:ion th reof are expre. ly 

made ·ul j ct to the right of the Pr i lent, in a cor lance with the 

provi: ion · d ub e tion (b) f e tion 10 of the ~ ationnl Indn. trial 

Re o-v r:v ·t fl' m time to tim to cane l or modify any order, 

approval li · "11 e, rule or re2"ulati n i uec.l under Title I of aid 

Act an l p cifi ·ally but ·without limitati n, to th right of th Pr . id n t ·an el r modify hi apr roval of thi Col r an nditi ns 

imp ~e d by him upon hi ar pro al th r of. E :no ... :T 2. In r ler to enabl h Inclu. ry to conduct its op r - ti ~ ·ubj ct t the provi:ion of thi od · to e. tablish fair trade 

pra tiee within the Indu try, and with th dealing ith the 
192 

Industry and otherwise to effectuate the purposes of Title I of the 

National Industrial Recovery Act, supplementary provisions of this 

Code or additional Codes may be submitted from time to time for 

the approval of the President. 

ARTICLE X-MONOPOLY 

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-PRICE INCREASES 

SECTION 1. 'Vhereas the policy of the National Industrial Recovery Act to increase real purchasing power will be made more difficult of consumma6on if prices of goods and services increase as 

rapidly as wages, it is recognized that price increases except such 

as may be required to meet individual cost should be delayed, but 

when made, such increases should, so far as pos ·ible, be limited to 

actual additional increases in the seller's costs. 

ARTICLE XII-EFFECTIVE DATE 

SECTION 1. This Code shall be effective on the first Monday after 

the date on which it shall have been approved by the President. 

Approved Code No. 386. 

Registry No. 1114--30. 

0