Approved Cod e No. 383-Supplement No. 1 Registry No. 330-06 

NATIONAL RECOVERY ADl\UNISTRATION 

UPPLEMEI~ ARY 

CODE OF FAffi COMPETITION 

FOR THE 

DOWEL INDUSTRY 

(A Division of the Wood Turning and Shaping Industries) 

AS APPROVED ON AUGUST 20, 1934 

WE DO OUR PARl 

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U.l. DI~OIIrf 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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

Printing Office, ,\.,.ashington, 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, l\1ass.: 1801 Customhouse. 

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

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San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 383-Supplement No. 1 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

DOWEL INDUSTRY 

As Ap·proved on August 20, 1934 

ORDER 

APPROVING CoDE OF FAIR CoMPETITION FOR THE DowEr, INDUSTRY 

A DIVISION OF THE WOOD TURNING AND SHAPING INDUSTRIES 

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 Dowel Industry, a subdivision of the vVood 

Turning and Shaping Industries, and hearings 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: 

NOW, THER.EFORE, on behalf of the Pr-·esident of the United 

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

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Code complies in all respects 

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

of Fair' Competition be and it is hereby approved, provided however 

that the provisions of Section (i), Article E, Section 1, Subsection 

A-(a) be and they hereby are stayed pending my further Order. 

Further provided that this Order shall not become e:ffecti ve for a 

period of fifteen (15) clays after the date hereof in order that consideration may be given to objections thereto, if any, of interested 

parties. At the expiration of such period, this Order shall become 

effective unless prior thereto, I have, by my further Order, otherwise 

determined. 

Approval recommended: 

C. E. ADAMS, 

HuGH S. JoHNSoN, 

Aibmimistrator for Indust1ial Recovery. 

Division Administ1·ator. 

WASHINGTON, D.C., 

Au;gust ~0, 1931,.. 

81 384 °-1044- 83-34 (1) 
LETTER TO THE PRESIDENT 

The PRESIDENT, 

The 1Vhite House. 

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

Dowel Industry, being Divisional Unit Number 9 of Part B of the 

\Vood Turning and Shaping Industry, approved Code No. 383, the 

hearing having been conducted in Washington, D.C., on January 

16th, 1934, in accordance with the provisions of the National 

-Industrial Recovery Act. 

PROVISIONS ON HOURS AND WAGES 

The maximum hours and minimum rates of wage for this industry 

are prescribed in the approved Code of F air Competition for the \~T ood Turning and Shaping Industries of which this indu try is a 

unit. 

CHILD LABOR 

The minimum nge provided in the approved Code of F air Comp·etition for the \Vood Turning and Shaping Industries is effective for 

this Divisional Unit. 

ECONO:i.VIIC EFFECT OF THIS CODE 

This industry employed in 1933 approximately 20 per cent more 

workers than \vere employed in 1932, though nearly 25 per cent less 

than during the year 1929. The work week averaged about 52 hours 

in 1929 but was reduced under the President's Reemployment Agree- ment to 40 hours in 1933. However, under the reduced hours with 

production remaining at present levels, little increa e in emplo} ment 

is expected. 

The minimum wage rate prescribed in thi Code will gr atly in- crea ·e the average earnings of employees as compared with the earnings of 1929 and the years which followed during which time the 

minimum wage wns only increased :from 24.1 c"'nts per hour in 1929 

to 25 cents per hour in 1933. Fr01n these figures it is apparent that 

the adoption of the propose l minimum wage rate (male employees 

in the north 35 cents per hour, in the south 321;2 cents per hour, 

f emale en1.ployees 30 cents per hour in the north and 27ljz cents in 

the ·outh) will cause an increase in the payrolls of this indu. try. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

sail Cocl' having found as herein set forth nnd on the basi of all 

t.he proceedings in this matter: 

(2) 
3 

I find that : 

(a) Said Code is well desjgned to promote the policies and purpo. es 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 indus- try for the purpose of cooperative action among the trade groups, 

by inducing and ma.intaining united action of lalJor and management 

under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest pos- sible utilization of the pre ent 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 increasing purchasing power, by reducing and relieving tmemploy1nent, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said industry normally employs not more than 50,000 em- ployees; and is not classified by me as a maj or 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 association is an industrial association truly representative of the aforesaid 

industry; and that said association imposes no inequitable restrictions on admission to membership therein. 

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

or monopolistic practices. 

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

small enterprises and will not operate to discriminate against them. 

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

been deprived of the right to be heard prior to the approval of said 

Code. 

For these reasons, therefore, this Code has been approved. 

Respectfully, 

HuGH S. JoHNsoN,. A drninistrator. 

AuausT 20, 1934. 
SUPPLEMENTARY CODE OF FAIR CO:l\-IPETITION FOR 

THE DO,VEL INDUSTRY 

A DIVISION OF THE WOOD TURNING AND SHAPING Il\"DUSTRIES 

PART B-DOWEL DIVISION, UNIT NO. !> 

ARTICLE A- DEFINITIONS 

SECTION 1. The Dowel Division shall consist of all members of 

the Industry engaged in the manufacture of Dowels. 

SEcTION 2. The term " Dowel " as used in thi,s Divisional Unit 

shall mean hard wood rods, cylindrical in shape o.f any length not 

exceeding one and one-half inches in diameter, excepting, however, 

dowel pins in all stages of manufacture ; farm tool handles as defined by Department of Commerce Simplified Practice Recommendation Number 76; and Candy Sticks and Skewers as defined in Divisional Units Numbers 4 and '7, respectively, of this Code. 

SECTION 3. The term " broker ;' for the purpose o.f thi~ Division 

shall 1nean one who sells :for a manufacturer, in the mann:facturer~s 

name, for the manufacturer's account, at prices and on tenns and 

conditions named by the manufacturer, and who carries no stock 

and . whose cmnpensation is in the form of a brokerage for such 

services. 

ARTICLE B-ADMINIS'IRATION OF DIVISIONAL AGENCY 

SECTION 1. Within fifteen ( 15) days after the effective date of this 

Divisional Code the Secretary of the Dowel l\1anufacturer's Asso- ciation shall call u meeting of all members o:f this Division for the 

purpose of electing the Administrative Agency of this Division. Due 

notice of this meeting shall be sent to ev.ery member of the Division 

in writing or by such other methods as will reasonably insure that 

all members are informed of such meeting and its purpose. SECTION 2. The Administrative Agency of this Division shall con- sist of a Board of six ( 6) members who shall ·erve for one year or 

until their successors are elected, and shall be elected by the following 

method: 

(a) At least one member of the Administrative Agency shall be 

a member of the Industry who is not a member of the Association, if 

there be any such, and shall be elected by a majority vote of all 

nonmembers of the A ·sociation present in person, by letter or by 

proxy. 

(b) The remaining member shall be elected by a majority ' ote of 

all the members of the Association pr sent in person, by letter or by 

proxy, each m('mber to have one vote. Three members shall repre-

(4) 
5 

sent the members of the Association located in the Northern Group ; 

(the northern group shall consist of the states of Maine, New Hampshire, Vermont, Mas 3.chusetts, Connecticut, Rhode Island, New 

Yor~, Pennsylvania, New Jersey, Delaware and Maryland) one member shall repre ent the members of the As ociation located in the 

Southern Group. (The Southern Group shall consist of the states as 

specified in P art A, Article II, Section 8 of the Code for the vV ood 

T urning and Shaping Industries) and one member sh all repr esent 

the vVestern Group. (The Western Group shall inclnde all Stares 

that are not included in theN orthern or in the Southern Gr oup.) 

(c) A vacancy in the membership of the Administrative Agency 

1nay be filled from the appropriate group by a majority vote of the 

r emaining members of the Admin]str ative Agency·, provided, however, that ther e shall always be a member of the Administrative 

Agency who ~ not a member of the said As ociation, if there be 

any such. 

(d ) In addition to the members elected by the Industry, the Administrator, in his di cretion, may appoint one to thre-e non-voting 

members to r epresent the Administrator. 

ARTICLE C-TERMS OF p AYMENT 

The terms of payment for this Division shall not be more favorable than a. cash discount of 3% for payment in advance 0f shipment, 2% for payment within ten days after shipment; 1% for payment on or before the 10th of any month for shipments of the previous 

month; net 30 days, E.O.M.; all cash discounts shall be figured on 

the net amount after deducting sales and/ or excise taxes and all 

claims and allowances for defective or rejected goods. 

ARTICLE D-TRADE PRACTICES 

The following shall be Trade Practice Rules for this Division in 

addition to those set forth in Article X of P art A of the Code for 

the Wood Turning and Shaping Industries : 

RULE 1. No member of this Division shall pay or all9w a conlmission on a F ederal or State Sales Tax. 

RULE 2. No member of this Division shall guarantee prices against 

decline or advance. · RuLE 3. No memher of the Industry shall ship goods on consignment except under circumstances to be defined by the Administrative 

Agency, and approved by the Administrator, where peculiar circumstances of the Indt,stry r equire the practice. 

RULE 4. No member of this Division shalf permit his brol,rers or 

commission salesmen to split or divide commissions with customers. 

ARTICLE E-E xcEPTIONS AND ADDITIONS TO PART A OF THE CoDE FOR 

THE wOOD TURNING AND SHAPING INDUSTRIES 

SECTION 1. The following ection shall be add·ed to the provisions 

of Article VIII of Part A of the Code for the Wood Turning and 

Shaping Industries: 
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A. DESTRUCTIVE .PRICE C1JTTING 

{a) Tlte f>Jvinciple.-(i) Destructive price cutting is .an unfair 

n1ethocl of competition and is forbidden at aU tim-es, it'respectiYe of 

the existence of an -em·ergency ; 1 

( ii) vVhen no declared emergency exists as t() any given product, 

there is to be .no fixed minimum b.asis for prices but it is intend-ed 

that sound cost estimating methods should be used ; 

{iii) '\Vhen an emergency exists as to any givBn pToduct~ sale below the lowest re.asonable co -.t of such pro luct, in vi()lation Df subsection (c) heruof, is forbidden. 

(b) Vnifm•m O.ost Aaco'u/n.ti ng. Th~ Code Auth{)rity shall cause 

to be fmmuluted an accounting systen1 and m.ethods of cost finding 

and/ or est~in1atjng capable of use by .all members of the Industry 

and shall submit such sy tpm a.ncl methods to the Adrninic: tr.ator for 

review uncl approval. After such system and methods have been 

formulate l anti approYed by the Administrator, full de±ails conc-erning them shall be made available to alJ. 1n~mbers . Thereafter it is 

intencle 1 that all members ·houlcl utilize th principles of such 

system or methods. 

(c) EmerrF'ncy (LowPat R eCt8ona:ble OQst).-When an emergency 

exi t , 1..he Code Authority may cause an impartial agency to investigate costs and to 1etermine the lowest reasonable cost of the product 

affected by the emergency. Such detennination shall exclude all cost 

elements set :forth in and shall be in all res;pects subject to such 

rules and regulations as may be issued by the AdministratDr and 

uhject to his approval or n1odification -a fter such notice and oppor- tuni.ty to be beard as he may pr c:cribe. The Code Authority or the 

Administrator may, from time to time, cause such determinations to 

be reYiewecl or reconsidered and appropriate action taken. 

(d) Definitions.- An " Emergency" exists whenever the Admini trator determine that destructive price cutting is r endering ineff ec.tiY-e or seriou .ly endangering the 1na.intenanoe .of the provisions 

of thi Coc.h~ .. 

(i) When no emergency exists, the tern1 shall have the meanil1g 

d~ lan~-d in rules ftnd re('J'ula:tions promulgated by the Administrator 

on r ecommendation of the Cod.e Authority or on his OWil motion ; 

{ii) lVh€n an cnl-e[·gen..cy exists, the term shall mean any saie in 

violation of ubsection (c) hereof; 

{iii) It shall be nn absolute def~nse to any charge of destructive 

P'ric-e .cutting., i;f an imr artial .agency designated or approved by the Aclminist~:ator, c:hall find : 

(aa) That th pri~e complained of is justified by €Xisting compehtion, .evidance of whieh l1as been reported to the Code Authority; 

(bh) Thnt the price cornplain€d of is justified .as a method of 

eli. po. al o:f ch·oppecl lines or seconds, or 

({:c) '\Vb.en no declared emerg·ency exists, that the member charged 

with c1 estructiY price eutting has in good fuith endeavored to make 

proper u e o..E the announc.ed co t estimating methods. 

SE TION 2. Article IX, Section 1, of the Code of Fair Competitjon 

of the \Voocl Turning and Shaping Industries in its application to 

thi · DiYision hull be amended to read as follows: -

1 Se<! para graph 2 cf or<.lcr approving this Code. 
7 

Each member o£ the Industry shall file with the Administrative 

Agency on tl1e date specified by the Administrative Agency after 

reasonable notice, net price sheets or price lists and discount sheets 

individually prepared by hiln and all terms and conditions of sale 

relating thereto. Such net price sheets or price lists and discount 

sheets and/ or terms and conditions of sale and any revisions thereof 

shall become effective immediately upon receipt by the Administrative Agency; shall be distributed by the Administrative Agency to 

the members of the Industry and published to the trade immediately 

upon receipt thereof; and shall be made available to all intBrested 

parties. Revised net price sheets or price lists and discount sheets 

and/ or terms and conditions of sale may be filed from time to time 

thereafter with the Administrn.tive Agency by any member of this 

diYision provided however that such revision shall be filed with the 

Administrative Agency by registered mail and shall become effective 

immediately upon telegrnphic acknowledgment to be made by the 

Administrative Agency the same day such revi ion is received. No 

member of the Industry shall sell or offer for sale any product of 

the Indu try at prices other than those noted in his or its net prict} 

sheets or pri~e lists and discount sheets and/or on terms and conditions of sale other than the terms and conditions of sale last filed 

by such member with the Administrative Agency in accordance with 

the foregoing provisions and in effect at the time of such sale or 

offer to sell. 

ARTICLE F-EFFECTIVE D ATE 

This Code for Divisional Unit No. 9 of the vVood Turning and 

Shaping Industries shall become effective on the seco.~d Monday after 

its approval by the President. --

Approved Code No. 383-Supplement No. 1. 

Registry No. 330-06. 

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