Approved Code No. 297 Registry No. 1702-2-11 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ADVERTISING DISTRIBUTING 

TRADE 

AS APPROVED ON FEBRUARY 17, 1934 

BY 

PRESIDENT ROOSEVELT 

,,.,, 0---: ........ 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

W ASBINGTON: 1934 

l I 

For sale by the Superintendent of Documents, Washin2ton, 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 

F'oreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atla11ta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, l\Iass. : 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, l\Iich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapoli~, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, l\10.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broad-vrny. 

Louisville, Ky. : 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

l\Iinneapolis, 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. : 422 Commercial Tru t Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Franci~co, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office BuildiBg. 
Approved : 

CODE OF FAIR L,~~IPETITION 

FOR THE 

ADVERTISING DISTRIBUTING TRADE 

As Approved on February 17, 1934 

EXECUTIVE ORDER 

CooE OJ<' FArn CoMPETITIOK FOR THE AoYERTISING DISTRIBU TING 

TRADE 

An application haYing been duly made, pursuant to and in full 

compliance with the provision of Title I of the :National Industrial 

RecoYery A ct, approYed June 16, 1933, for my approval of a Code of 

Fair Competition for the Ac.lverti ·ing Di tributing Trade, and hearings haYing been held thereon and the Administrator having rendered 

his report containing an analysis of the aid Code of Fair Competition together with his recommendations anc.1 findings with respect 

thereto, and the Administrator haYing found that the said Code of 

Fair Competition complies in all re pects with the pertinent provi-

·ions of Title I of aid Act and that the requirements of clause ( 1) 

and (2) of sub ·ection (a) of Section 3 of the ·aid Act ha Ye been 

met: 

NO"T, THEREFORE, I , Franklin D. Roo. ·evelt, President of 

the Unitecl State ·, pursuant to the authority Ye t ed in me by Title I 

of the National Indu trial Recovery Act, approved June 16, 1933, 

and otherwise, do adopt and approve the report, recommendations 

and findings of the Admini trator and do order that the said Code 

of Fair Competition be and it is hereby approved, ubject to the 

following condition : 

1. That for a period of 90 day from the effective date of this 

Code boys of the age of 14 and 15 may be employed for a period 

not to exceed three hours per clay. All such work hours shall be 

between 7 a.m. and 7 p.m. and shall not conflict with the employees' 

hour. of day school. 

2. Application of the definition of ""vorking hours" in Article 

III, Section 5, is ta:5 eel for a period of 90 day from the effectiYe 

date of thi Code to afford the Code Authority an opportunity to 

tudy and recommend to the Administrator a plan whereby the 

intere. ts of the carrier shall be better protected. 

410 4°-- 376--108-34 (187) 

• 
188 

3. The effect of Article III Sections 4 and 5, on the hours and 

rates of pay of office workers shall be reported to the Administrator 

within 90 days of the effective date of the Code in order to determine 

whether such hours and rates nee l be further limited. 

FRANICLIN D. ROOSEVELT. 

Approval recommended : 

HUGH S. JOHNSON, 

Administrator. 

THE WHITE HousE, 

February P7, 1934 . 

• 
LETTER OF TRANS~IITTAL 

The PRESIDENT, 

The lVliite Iloitse. 

INTRODUCTION 

• Srn: This is the report o:f the Administrator to the Pre ·ident on 

the application :for, and public hearing on, a Code o:f Fair Competition :for the Advertising Distributing Trade, as proposed by the 

Code Committee representative o:f that busine s. The Code presented herewith was revi ed by the Committee prior to the close o:f 

the public hearing on October 16, 1933. 

The hearing was conducted in "T ashington on October 16, 1933. 

Every person who requested an appearance was :freely heard in 

accordance with statutory and regulatory requirements. 

There is no one national, thoroughly representative trade a sociation :for advertising distribution, but the members o:f the Trade, 

acting as a group, delegated authority to an elected Code Committee 

to draft and present a Code :for the Trade. I have :found no reason 

to question the truly representative character o:f said Committee and 

I believe that the Trade was accorded every reasonable opportunity 

to influence its decisions as evidenced by the :fact that 1,262 di. tributors :formally endorsed the Code and apparently no distributor 

opposed it. 

DEFINITION 

Advertising di tribution does not occupy a clearly defined place in 

the national economy, yet the services rendered by distributing concerns require the employment of over 80,000 adult males and 

approximately $100,000,000 in gross business. The definition, as it 

appears in Article II, Section 1, o:f the Code, is the re ult of an 

exhaustiYe tudy of this Trade, it inherent and its competitiYe 

a. pects. It embraces no productiYe functions, in the generally ace pted meaning; it is purely a service, available to anyone who 

wi hes to havB hi advertisements or samples broadcast in a certain 

place or region. Certain aspects of the non-utility operations of 

telegraphic communications companies have :fallen within the definition, but the definition, in conference with representatives of the 

telegraph companies, has been drawn to exclude so-called me enger 

erYice or the delivery of per onal communications, so that 

competition will be entirely fair. 

Great care, al o, was given to ob, iate any po sibility that the 

clefiniton would cover any per on whose own employees were engaged 

in deli,,ering or di tribution o:f hi own matter. ome conflict arose 

between thi · Code and a propo ·eel Code :for o-callecl ' shopping 

new paper '. The name is mi leading. A ·hopping new paper, 

as wa · hmn1 both at thi and th Graphic Art. hearing, September 

20, 1933 i nothing more than a heet in which the advertisements of 

(1 9) 
190 

more than one advertiser have been combined; it enjoys no paid 

circulation an 1 is not individually addressed. Promiscuous distribution in a given neighborhood or region is clearly the province of 

the Adverti ing Distributing Trade to which shopping newspaper hould be no exception; and concerns which di...,tribute such 

shopping newspapers should be accorded no competitive advantage 

over tho e which di. tribute other advertisement , the more so as it 

was hown that the former often undertake incidental distribution 

of other matter than shopping newspapers. 

ECONOMIC AND STATISTICAL l\1ATERIAL 

The Advertising Distributing Trade in 1932 furnished employment to 85,000 persons, of which 80,000 were adult male carriers. 

There is considerable irregularity in the volume of business owing 

to its very nature, yet it affords work to a type of man who might 

find it difficult to obtain employment requiring greater skill or who is 

unfit for a sedentary or indoor occupation. It presents, however, 

greater stability than might be expected: In 1929, employees numbered 95,000 or only 10,000 more than in 1932, and the gross business 

-varied only fractionally. 

Exact data on wages are not available but the Code Committee 

stated that at present $2.00 was the maximum for a ten hour day 

and that in the South as little as $1.25 was being paid. 

RESUME OF THE CODE 

The proponents of the Code have established an average forty hour 

week or eight hours a day for carriers. The effect of this provision 

"ill be to add one new man for each six now employed or 16% % 

which, granting a volume of business comparable to 1932 hould 

return employment to 1929 figures or better. . 

It \\"as propo ed to e tabli h a 25¢ minimum rate of pay in the 

South and 30¢ elsewhere, which in no case would be les than a 20% 

gain over existing rates and in m.any cases sub tantially greater. 

,Yhereas there was reason to believe that 25¢ for the South was not 

only adequate but well in line with the rates of pay of more prosperous time , it wa raised to 271⁄2¢ to meet the representation of the 

Labor Advisor in behalf of a 30¢ minimum for the whole country. 

To the greatest practicable extent, provision with regard to labor 

were included with the intent of improving the conditions and 

continuity of work. 

The administration of the Code follows closely the lines recommend·ed by the N.R.A. Legal Division. Inasmuch as no trade a sociation is available to undertake administration, it is provided that 

the Code Committee of the Trade carry on for thirty days to allow 

time for it to arrange an election of the Code Authority by participating Trade members as provided in Article IV, Section 6. 

The Deputy Administrator in hi final report to me on aid Code 

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

proceedings in this matter; 
191 

I find that: 

(a) Said Code is well designed to promote the policie and purpo. e of Title I of the T ational Industrial Reco, ery Act including remoYal of ob tructions to the free flow of inter- tate and foreign 

commer ·e "IThich tend to diminish the amount thereof and will proYide for the general welfare by promoting the organization of 

inclu -try for the purpo ·e of cooperative action among the trade 

group by inducing and maintaining united action of labor and 

management under adequate governmental anction and upervi ion, 

by eliminating unfair competitiYe practice: . bY promoting the fullest 

po ·sible utilization of the pre ent productiv·e capacity of inclu. tries, 

by aYoicling undue restriction of production ( except as may be temporarily required) by increa ing the consumption of indn -trial 

and agricultural products through increa ing purcha..:ing pmYer, by 

reclucino· and relieving unemployment, b) improving tandard of 

labor and by othenvi~e rehabilitating industry. 

(b) The Code as approved complies in all re~pect with the pertinent provi ion. of ·aid Title of aid Act, inclu ling without limitation Sub ection (a) of Section 3, Subsection (a) of Section 7 and 

Subsection (b) of ection 10 thereof· and that the appficant group 

is a trade group truly representative of the afore aid Trade; and that 

"aid group impose no inequitable restriction on admi sion to member hip therein. 

( c) The Code i not de. igned to and will not permit monopolies 

or monopoli tic practic-es. 

( d) The C9de i not de igned to and will not eliminate or oppre s 

, mall enterprises and will not operate to discriminate against them. 

(e) Those engaged in other steps of the economic proce~ have 

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

Code. 

For these rea ons, I recommend that the Code be approved. 

Re pectf ull y, 

H UGH S. J OHKSON, 

February 17, 1934. 

Administrator. 
• 

CODE OF FAIR COMPETITIO FOR THE ADVERTISING 

DISTRIBUTING TRADE 

ARTICLE I-PURPOSES 

To e:ff ectuate the policies of Title I of the National Recovery Act, 

the following l)rovisions are e tablished as a Code of Fair Competition for the Advertising Distributing Trade, and shall be the standard of fair competition for such Trade and shall be binding upon 

every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The terms "the Advertising Di tributing Trade" or 

" the Trade " shall n1ean and include any business of distributing, 

either direct to the home, place of bu ine s, or hand to hand, free of 

charge to the recipient, of any printed matter or other material in 

quantitie of fifty units or more, including but without linutation, 

telephone directorie , adverti ing literature, or other matter, free 

copie of new paper and publications or samples; but shall not 

mean or include individuals, firms or corporation distributing their 

own matter with employees compensated by and directly in their 

employ, but shall mean and include individuals, firms or corporations di tributing free adverti ing literature, papers, or other adverti ing matter who e primary purpose or function is to advertise the 

product or ser,·ice of another or others; and hall not mean or 

include the busine of delivering personal communications or any 

matter inaividually addre sed by the sender, except where the quantity and/or continuity of such addressed matter approximates a 

pro1ni cuous or general distribution in any given precinct, district, 

section or locality of any city, town or village. 

SECTIO 2. The term member of the Trade ' hall mean and 

include anyone engaged in the Advertising Di tributing bu ine s as 

an employer or on his own behalf. 

SECTION 3. The term "employee" hall mean and include any 

per on engaged in the Distributing Trade in any capacity receiving compensation for his services, irrespective of the nature or 

method of payment of uch compen ation except a member of the 

trade. 

~'EcTION 4. The term "employer" shall mean and include anyone by whom any employee is compensated or employed. 

SECTION 5. The term " carrier" shall mean any em.ployee whose 

work con i ts of the manual delivery or distribution of the matter 

to be distributed. 

'EcTION 6. The terms "President", "Act" and "Admini trator', 

a u eel herein hall mean, respectively, the Pre ident of the nited 

State , the rational Industrial Recovery Act, and the Administrator 

for Industrial Recovery . 

(192) 
193 

SECTION 7. The terms herein defined, wherever used in this Code, 

shall, unless the context shall otherwise clearly indicate, have the 

respective meanings in this Article set forth. The definition of 

any such term in the singular shall apply to the use of such term 

in the plural or vice versa. 

ARTICLE III-LABOR 

SECTION 1. Employees shall have the right to organize and bar• 

gain collectively through repre,sentatives 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 the self-organization or in other concerted 

activities for the purpose of collective bargaining or other mutual 

aid or protection ; 

SECTION 2. No employee and no one seeking employment shall 

be required as a condition of employment to join any company 

union or to refrain from joining, organizing, or assisting a labor 

organization of his own choosing; and 

SECTION 3. Employer,s shall cmnply with the maximum hours of 

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

approved or prescribed by the President. 

SECTION 4. The wages that shall be paid by any member of the 

Trade to any employee employed in the States of Arizona, New 1Iexico, Texas, Oklahoma, Arkan as, Louisiana, Mississippi, Tennessee, 

Alabama, Georgia, Florida, South Carolina, North Carolina, and 

Virginia shall be not less than twenty-seYen and one-half cents 

(271⁄2¢) an hour; and to any employee employed in all other States 

in the United Stutes and the District of Columbia shall be not less 

than thirty cents (30¢) an hour. 

SECTION 5. No carrier shall work or be permitted to work an aver. 

age of more than forty working hours per week in any six months' 

calendar period nor more than forty-eight hours in any one week 

during such period, nor more than eight hours in any one day. The 

maximum hours per day herein specified shall not apply to an emergency, but in any such special' case, at least time and one-third shall 

be paid for all time worked in excess of eight hours per day. 

"Working hours" as used herein, shall mean and be calculated from 

the time that a carrier arrives at the designated locality where he is 

to distribute and commence distribution, to the time that he ceases 

such distribution at such designated locality. Transportation expense incident to the work of a carrier shall be furni hed by the 

employer. 

No other employee ( except executives and outside salesmen who 

receive more than $35.00 per week) shall work or be permitted to 

work an average of more than forty-four hours per week in any calendar month, nor more than forty-eight hours in any week, nor more 

than nine hours in any one day. The maximum hours per day herein 

specified shall not apply to an emergency, but in any such special 

. case, at least time and one third shall be paid for all time worked in 

excess of nine hours per day.1 

1 See paragraph 2 of order approving this Code. 
194 

SECTION 6. No member of the Trade hall employ a carrier durjng 

any portion of any clay at le · than a wage equivalent to that which 

ueh employee \foul l be entitled to recefre for three w·orking hours; 

proYided, howeYer, that in ca e of jnclement weather thjs proYi ion 

shall ha-ve no application. The hours worked by any employee during each day hall be con ecutive (except that in ca ·e of inclement 

" ·eather this hall not apply to carrier ) provided that an interval 

not longer than one hour may be allowed and deducted from \forking hours for each regular meal period. Any rest period ·which ma.\ 

be gi-ven employees hall not be deducted from . uch employee'. 

,Yorking time. 

SECTION 7. No member of the Trade shall employ in tl~e Trade 

any per:on under the age of sixteen (16) year nor anyone under 

eighteen ( 18) years of age at operations or occupation hazardouc, 

in nature or detrimental to health. The Code Authority hall ubmit 

to the Aclmini:trator within ninety (90) days after the effecti-ve date 

a lit of uch occupations. In any State an employer shall be deemed 

to ha-ve complied with thi provision if he shall ha, e on file a certificate or permit duly is ·ue l by the authority in such State empowered to is._ue employment or age certificates or permits, showing that 

the employee is of the required age. 2 

SECTION 8. No employee whose full time weekly hours for the 

four ( 4) weeks ended June 17, 1933 are reduced by the provi ions of 

thi. Code by twenty per cent (20 % ) or le hall have his or her 

full time w·e 0 kly earning reduced. No employee who. e said full 

time weekly hours are reduced by the provi ··ion of this Code. in 

exces · of twenty per cent (20 % ) shall have his or her said earnings 

reduced by more than fifty per cent ( 50% ) of the amount calculated by multiplying the reduction in hours in excess of twenty per 

cent (20 % ) by the hourly rate. 

SECTION 9. Thi Article establishing minimum rate of wage regardle. s of whether an employee be compensated on a time rate 

piece "·ork: or other basis. 

SECTION 10. Every carrier shall be paid at least once a week. 

SECTION 11. Employers hall not reclassify employee or dutie of 

occupation performed by employees or engage in any other ubterfuge o a. to defeat the purpo ·es of the Act or of this Code. 

SECTION 12. Each employer shall post in conspicuous place full 

copie of this Code. 

SECTION 13. Female employees performing ubstantially the same 

work as male employee. · hall receive the same rate of pay a male 

employee . . 

ARTICLE IV-Aol\IIKISTRATION 

To further effectuate the policie · of the Act, a Code Authority 

1 hereby constituted to Admini ter this Code. 

SECTION 1. Organization and con titution of Code Authority. 

(a) The Code Authority hall con .. ist of twehTe (12) repre entatiYes engaged in the Adverti ing Di tributing Trade, or uch other 

number a · may be approYed from time to time by the Administrator, · 

elected by a fair method of election to be approved by the Admin2 See paragraph 2 of or<ler a.ppro\"ing thi Co<le. 
195 

istrator, and not more than three members without vote who may 

be appointed by the Administrator, in his discretion. 

The Code Authority shall be elected within thirty days of the 

effective date of this Code; in the interim the Code Committee of 

the Advertising Distributing Trade shall arrange for such election 

and shall serve as the Code Authority. 

(b) In order that the Code Authority shall at all times be truly 

representative of the Trade and in other respects comply with the 

provisions of the Act, the Administrator may prescribe such hearings 

as he 1nay deem proper; and thereafter if he shall find that the 

Code Authority is not truly representative or does not in other 

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

appropriate modification in the method of election of the Code 

Authority. 

( c) Each trade or industrial association directly or indirectly 

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 of association, by-laws, regulations, and any amendments when made thereto, 

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

effectuate the purposes of the Act. 

SECTION 2. The Code Authority shall have the following duties 

and powers. 

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

and for the administration and enforcement of the Code, in accordance with the powers herein granted, and to submit the same to the 

Administrator for his approval together with true copies of any 

amendments or additions when made thereto, minutes of meetings 

when held, and such other information as to its activities as the 

Administrator may deem necessary to effect the purposes of the Act. 

(b) To make uch rules and regulations and gather such data, 

statistics and information as may be necessary in the admini tration 

of thi Code; 

( c) To appoint and remove, and to fix the compenc::ation of such 

employee , accountants, attorneys, and officers as it shall deem. 

necessary or proper for the purpose of admini tering the Code; 

( cl) To appoint from. time to time such con1mittees as it may deem 

necessary or proper in administering the Code, and to delegate to 

such committees generally or in particular instances such of the 

powers and duties of the Code Authority as such Authority shall 

deem proper or necessary, provided nothing herein shall relieve the 

Code Authority of its duties or responsibilities under this Code. Any 

member of any such committee may be a member of the Code Authority or an officer or director of a member of the Trade, or a person not 

ha ing any official connection with any member of the Trade, as the 

Cocle Authority shall deem proper. 

SECTION 3. The Cod Authority shall 

(a) l\1ake a study of labor conditions within the trade in order 

to determine the £ea ibility of the adoption of a shorter working 

week and adju tments in the rates of pay, and to investigate particularly the conditions of work involving a carrier and shall, within 
.. 

196 

three months a:fter the effective date of thi Cod " make a recommendation and a r eport of its finding to the Admini trator. 

(b) Pre ent to the Admini trator recommendations ba eel on conlitions in the Trade a they may cleYelop from time to time which 

will tend to effectuate the operation of the provisions o:f this Code; 

( c) Formulate and submit for the approval o:f the Adrnini trator 

a uniform co t y tern upon " ·hich, after such approYal, the cost of 

di tribution serYice shall be based ; 

(cl) Cooperate with the Administrator in making i1we. tigation 

:;i to the functioning and obse1Tance of any provi ion of this Code, 

at it own in tance at the request of the Adrnini trator, or on complaint of any per ·on affected, and report its findings to the Administrator. The Code Authority shall be the effective agency to bring 

to the attention of and cooperate and aid the proper authorities under 

the National Industrial RecoYery Act to enforce the Code and to 

effectuate its purpose and the policy of the Act. 

SECTION 4. In addition to the information required to be submitted 

to the Code Authority, there shall be furni ·heel to Government 

agencie such tati tical information a the Administrator may deem 

necessary for the purpose.· recited in Section 3 (a) of the Act. 

SECTION 5. The Code Authority may utilize the facilities of and 

cooperate with any and all trad 0 associations or organizations, national regional or local, in the AdYerti ing Distributing Trade in uch 

manner as it deem · most u eful to its work. 

SECTION 6. J\1embers of the Trade shall be entitled to participate 

in and share the benefit of the actiYitie of the Code Authority, to 

participate in the selection of the member thereof, and to use the 

N.R.A. Code In ignia , by assenting to and complying with the requirements of this Code and sustaining their reasonable share of 

the expense of its admini tration. The reasonable share of the 

expen es of admini tration shall be determined by the Code Authority. ubject to approval by the Administrator, on the basis of volume 

of business and/ or such other factors a may be deemed equitable 

to be taken into consideration. 

SECTION 7. I:f the Administrator shall determine that any action 

of a code authority or any agency thereof may be unfair or unjust 

or contrary to the public intere t, the Administrator may require 

that uch action be suspended to afford an opportunity for inve~tigation of the merit of such action and further consideration by 

uch code authority or agency pending final action which shall not 

be effective unle . the Administrator approves or unle he hall fail 

to di a pproYe after thirty days' notice to him of intention to proceed "·ith ·uch action in the original or modified form. 

SECTION 8. Nothing contained in thi Code hall constitute the 

members of the Code Authority partner~· for any purpose. Nor shall 

any me1nber o:f the Code Authority be liable in any manner to anyone for any act of any other 111.ember, officer, agent or employee of 

the Code Authority. Nor hall any member of the Code Authority 

be liable to anyone for any action or omi ·. ion to act under the Code, 

except for hi own willful mi fea ance or non-feasance. 
197 

ARTICLE V-TRADE PRACTICES 

The following practices constitute unfair method of competition 

for members of the Trade and are prohibited: 

( 1) Selling or off erin,g for ale, distribution service for le s than 

the cost of rendering such di tribution erYice a determined by uch 

uniform co~t accounting system as may be approved by the 

Admini trator. 

(2) Contracting or undertaking to di tribute a certain number or 

quantity of material in certain given localitie and actually distributing a le er number or quantity without advi ing the purchaser of 

the di tribution ervice of such fact. 

( 3) Knowingly cau ing or permitting, without the consent of the 

purchaser of the di tribution ervice the destruction wa. te or concealment of any material which a member of the Trade ha contracted or undertaken to distribute. 

( 4) I uin,g or permitting to be i sued fal e or misleading inf ormation whether at the request of a purcha er or di tribution ervice, 

or otherwise, a to the number or quantity of material di tributed 

or to be di tributed. 

(5) ~faking or promi ing, either directly or indirectly, to any 

purcha er or prospective purchaser or to any ao-ent or employee of a 

purchaser or pro pective purchaser of distribution ervice, any bribe 

or ecret rebate. 

(6) Inducing or attempting to induce the breach of an existing 

oral or written contract between a competitor and hi cu tomer or 

interfering with or obstructing the performance of any uch contractual dutie or ervices. 

(7) The defamation of competitors by £al ely imputing to them 

dishonorable conduct, inability to perform contract._ que tionable. 

credit tanding, or b r other £al e representation . . 

( 8) Securing confidential information concerning the bu. ·ines of 

a competitor by a £al e or misleading statem.ent or repre entation, 

by a false imper onation of one in authority, by bribery, or by 

an3 other unfair method. 

(9) Other nfair Practices: Nothing in this Code hall limit the 

effect of any adjudication by the Court or holding by the F ederal 

Trade Commi ion on complaint, finding, an l order, that any practice or method i unfair providing that uch adjudication or holding i not incon i tent with any provi. ion of the Act or of this 

Code. 

ARTICLE VI-~IODIFIC.cl. TION 

SECTION 1. Thi Code and all the provi ion thereof are expres. ly 

made ubject to the rio·ht of the Pre ident in accordance with the 

provi ion of nb ection (b) of Section 10 of the National Incl u. - trial Recovery Act, from time to time to cancel or modify any or ler, 

approval, lie n e, rule or regulation i ued under Title I of said 

Act and specifically, but without limitation to the rio·ht of the 

Pre ident to cancel or modify his approval of thi cic.1e or any 

conditions impo ed by him upon his approval thereof. 
198 

SECTION 2. This Code, except as to prov1s10ns required by the 

Act, may be modified on the ba i of experience or change in circumstances, such modification to be based upon application to the 

Administrator and such notice and hearing a he shall specify, and 

to become effective on approval of the Pre ident. 

ARTICLE VII-1Io oPoLrns, ETc. 

No provi ion of this Code shall be so a ppliecl as to permit monopolie or monopolistic practices, or to eliminate, oppress or cliscriminate again t , mall enterpri es. 

ARTICLE VIII-PRICE IN CREASES 

,Vherea · the policy of the Act to increase real purcha ing pov,·er 

will be made impossible of con. ummation if prices of serYices jncrea e as rapidly as wages, it is recognized that price increases 

should be delayed and that, when made, the same hould, o far 

as reasonably po ible, be limited to actual increases in the seller's 

costs. 

ARTICLE IX-EFFECTIYE DATE 

This Code shall become effectiYe on the tenth day after it. approval by the President. 

Approved Code No. 297. 

Regi. try No. 1702- 2- 11. 

0