Approved Code No. 412 Registry No. 409-04 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

LOOSE LEAF 

AND BLANK BOOK INDUSTRY 

AS APPROVED ON MAY 1, 1934 

WE DO OUR PART 

I .., Q!'_) 

n - - --

UNITED STATES 

GOVERNMENT PRINTING OFFICE . WASHINGTON: l!l34 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 

v 
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. 

CleYeland, Ohio: Chamber of ()ommerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich. : 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansa 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, Cu~tomhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va. : 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. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 412 

CODE OF FAIR COMPETITION 

FOR THE 

LOOSE LEAF AND BLANK BOOK INDUSTRY 

As Approved on May 1, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION FOR THE LOOSE LEAF AND 

BLANK BooK INDUSTRY 

An application having been duly made fursuant to and in full 

compliance with the provisions of Title I o the National Industrial 

Recovery Act, approved June 16, 1933, £or approval of a Code of 

Fair Competition £or the Loose Lea£ and Blank Book Industry, and 

heari11:_gs 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, THEREFORE, on behalf of the President of the United 

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

pursuant to authority vested in me ~l 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 th~ 

pertinent provisions and will promote 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 Article IV, Sections 2 to 9 inclusive, of the Supplemental Code £or the Trade Manufacturers Division, insofar as they 

prescribe a waiting period between the filing with the Code Authority (i.e. actual receipt by the Code Authority) and the effective date 

of revised price lists or revised terms and conditions of sale be and 

they are hereby stayed pending my further order; provided further, 

that within ninety days I may direct that there be a further hearing 

on such of the provisions of said Code as I may des.ignate, and that 

any order which I may make after such hearing shall have the effect 

of a condition on the approval df the Code. 

HUGH s. JOHNSON, 

Ad1ninwtrator for Industrial Recovery. 

Approval recommended : 

GEO.r-L. BERRY, 

Divwion Administrator. 

WASHINGTON, D.C., 

May 1, 1934. 

56152°-544-8-34 (551) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report of the hearing on the Code of Fair Competition for the Loose Leaf and Blank Book Industry, conducted in 

Washington on January 26, 1934, in accordance with the provisions 

of Title I of the National Industrial Recovery Act. 

HOURS .AND WAGES 

This Code provides a 40 hour week for factory workers with a 

weekly tolerance of eight hours to be paid for as overtime, and limited to 12 weeks per year. The usual exceptions are made in regard 

to non-productive employees. Office employees are limited to an 

average of 40 hours per week over an eight week period. 

OPEN PRIOE PLAN 

An open price plan of selling is provided, and selling below cost, 

except to meet competition, is prohibited. 

OTHER PROVISIONS 

Provision is made for furnishing the Administrator with such statistical data as he may require. 

ECONOMIC EFFECT OF THE CODE 

Figures submitted by plants in the Industry show an increase in 

employment of 39% between May and October, 1933. This probably 

reflects both an increased business activity and the effect of the 

President's Reemployment Agreement, with about 15 or 20% of the 

additional employment due to the latter. The hour schedule of the 

Code should maintain this increase. 

From figures submitted by identical plants, payrolls show an increase between May and October, 1933 of about 40%. As a result 

of the Code this should be maintained. 

FINDINGS 

The Deputy Administrator 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 purposes of Title I of the National Industrial Recovery Act, including 

(552) 
553 

removal of obstructions to the :free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and management 

under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible 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 increasing purchasing power, by 

reducing and relieving unemploy1nent, by improving standards of 

labor, and by otherwise rehabilitating industry. 

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

( c) The Code as a pp roved com plies 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 approval of 

said Code. 

For these reasons this Code has been approved. 

Respectfully, 

~L_y 1, 1934. 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR COMPETITION FOR THE LOOSE LEAF 

AND BLANK BOOK INDUSTRY 

To effectuate the policies of Title I o:f the National Industrial Recovery Act, the following is hereby established as a Code of Fair 

Competition for the above named Industry and shall be binding on 

every member thereof. 

ARTICLE I-DEFINITIONS 

The following words are used in this Code with the meaning herein 

set :forth: 

" Industry "-The manufacture of loose leaf devices, forms and 

SUJ>plies, and bound blank books, adopted chiefly to the use of industrial, commercial and institutional users. 

" Member "-A natural person, partnership, corporation, association, trust, trustee, trustee in bankruptcy, receiver or other form of 

enterprise, engaged in such Industry. 

"Supplemental Codes "-Supplemental Codes for the Trade 

Manufacturers Division and the Direct Manufacturers Division. 

"Act "-Title I of the National Industrial Recovery Act. 

"Administrator "-The Administrator for Industrial Recovery 

under Title I in the Act. 

ARTICLE II-ORG.ANIZ.ATION .AND ADMINISTRATION 

SECTION 1. There shall be constituted forthwith a Basic Code 

Authority of the Loose Leaf and Blank Book Industry which shall 

consist of the members of the Code Authorities of the Supplemental 

Codes, together with such person or persons as the Administrator 

may appoint. The person or persons appointed by the Administrator shall have no vote and sh.all serve without compensation from 

the Industry. 

SECTIO:N" 2. The Basic Code Authority shall be charged generally 

with the duty o:f administering this Basic Code. If the Administrator shall determine that any action of the Basic Code Authority, 

or any agency thereof, may be unfair or unjust or contrary to the 

public interest, the Administrator may require that such action be 

susp 0 nded to afford an opportunity :for investigation of the merits of 

such action and further consideration by the Basic Code Authority 

or agency pending final action which shall not be effective unless the 

Administrator approves or unless he shall fail to disapprove after 

thirty days' notice to him of intention to proceed with such action 

in its original or modified :form. 

SECTION 3. The expenses of administering this Basic Code shall 

be borne pro rata, in accordance with a :formula to be adopted by 

the Basic Code Authority subject to approval of the Administrator, 

(554) 
555 

by all members of the Industry who accept the benefit of the service 

of the Basic Code Authority or otherwise assent to this Basic Code. 

SECTION 4. The Basic Code Authority may use such trade associations and other agencies as it deems proper for the carrying out of 

any of the activities provided for herein, provided that nothing 

herein shall relieve the Basic Code Authority of its duties or responsibilities under this Basic Code, and that such trade associations or 

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

SECTION 5. Nothing contained in this Basic Code shall constitute 

the member;:; of the Basic Code Authority partners for any purpose. 

Nor shall any member of the Basic Code Authority be liable in any 

manner to anyone for any act o.f any other member, officer, agent, 

or employee of the Basic Code Authority. Nor shall any member 

of the Basic Code Authority, exercising reasonable diligence in the 

conduct of his duties hereunder, be liable to anyone for any action 

or omission to act under this Basic Code, except for his own willful 

misfeasance or nonf easance. 

SECTION 6. The Basic Code Authority may appoint a Trade 

Practice Committee which ,shall meet with the Trade Practice Committees under such other Codes as may be related to this Industry 

:£or the purpose · of formulating fair trade practices to govern the 

relationship between production and distribution employers under 

this Code and under such others to the end that such fair trade practices may be proposed to the Administrator as amendments to this 

Code and such other Codes . 

.. ARTICLE III-SUPPLEMENT AL CODES 

SECTION 1. Supplemental Codes pertaining to existing Divisions 

of the Industry are contained in Exhibit A and Exhibit B attached 

hereto which are specifically made a part of this Basic Oode. 

Additional Supplemental Codes may be filed with the Basic Code 

Authority and, 1f not inconsistent with the provision,s of this Basic 

Code, may be recommended by it to the Administrator. When 

approved by the Administrator, after such notice and hearing as 

he may prescribe, such Supplemental Codes shall have the same force 

and effect as any other provisions of this Basic Code. 

ARTICLE IV-HoURs OF LABOR 

· SECTION 1. Employee,s in the Industry shall not be required or 

permitted to work hours in excess of the limits prescribed in the 

following schedule: 

SCHEDULE OF WORKING HOURS 

(a) Watchmen: Fifty-six (56) hours in any one week but not 

more than six (6) days in any seven (7) day period; or fifty-six 

( 56) hours in any one week but not more than eight ( 8) hours in 

any one day. 

(b) Chauffeurs, truckdrivers and their helpers: One hundred 

eighty (180) hour,s in any period of ;four (4) consecutive weeks, 

provided, however, that time worked in excess of nine ( 9) hours in 
556 

any one day or forty-five (45) hours in any one week shall be paid 

for as not less than time and one-third. 

( c) Engineers, firemen, electricians: One hundred sixty-eight 

(168) hours in any period of four ( 4) consecutive weeks, provided, 

however1 that time worked in excess of nine ( 9) hours in any one 

day or torty-five (45) hour,s in any one week shall be paid :for as 

not less than time and one-third. 

( d) All other laborers, mechanical workers or artisans employed 

in any plant, mill or :factory, or on work connected with the operation of such plant, mill or :factory :-Eight (8) hours in any one 

day and forty ( 40) hours in any one week provided, however, that 

these maximum limits may be exceeded in any twelve (12) weeks 

o.f the calendar year provided all time worked 1n excess of the maximum prescribed shall be paid for a,s not less than time and onethird and provided :further that no em:ployee shall be required or 

permitted to work in excess o:f ten ( 10) hours in any one day or 

forty-eight ( 48) hours in any one week. 

( e) Employees regularly engaged in a managerial or executive 

capacity and their personal secretaries, foremen and supervisors, 

receiving thirty-five ($35.00) dollars or more per week, and outside 

salesmen: No limitation. 

(f) All other employees: Forty-eight (48) hours·in any one week 

but not to exceed three hundred twenty (320) hours in any period 

of eight (8) consecutive weeks. 

SEOTION 2. No limitat~on contained in said schedule shall apply 

to employees of any class when engaged in emergency repairs or 

emergency maintenance work occasioned by breakdowns or involving protection of life or property, provided, however, that all time 

worked in excess of the limitations prescribed in said schedule shall 

be _paid for at not less than time and one-third. 

SECTION 3. No employer shall permit any employee to work for 

any time which, when totaled with that already performed with 

another employer or employers in this Industry, exceeds the maximum permitted herein. 

SECTION 4. No female employee shall be required or permitted 

to work between the hours of 10 P.M. and 6 A.:M. 

ARTICLE V-W AGES 

SECTION 1. The minimum rate of wages of any employee, other 

than office or clerical employees employed in any plant, mill or 

factory or on work connected with the operation of any such plant, 

mill or factory shall be as follows : 

Male labor, 40 cents per hour. 

Female labor, 35 cents per hour. 

S ECTION 2. The minimum rate of wage of any office or clerical 

employee shall be as follows: 

(a) In cities having a population of 500,000 or more, or in tho 

immediate trade area of such cities, at the rate of fifteen ($15.00) dollars per week. 

(b) In cities having a population of less than 500,000 and more 

than 250 000, or in the immediate trade area of such cities, at the 

rate of fourteen dollars and fifty cents ($14.50) per week. 
557 

( c) I n cities having a p pnlation of less than 2,-0 000: or in the 

immediate trncle area of cuch citi s, at the rate of fourteen ($14.00) 

dollar per week. 

Population for th purpo·e of thi ection hall be determined 

by reference to the late -t Federal cew·u . 

SEcTIO.. 3. Thi Article e tabli ·he a minimum rate of pay which 

hall apply irre. pective of whether an employee is actually compen- sated on time-rate, piece-work or other ba ·i . 

SECTION 4. Female employee · performina substantially the same 

work a male employee hall recei, e the ame rate of pay a male 

emplo3 ee . The Basic Code Authority hall within ninety (90) days 

after the effechve elate of thi ode file with the Administrator a 

description of all occupations in the Indu try in which both men 

and women are employed. 

SECTION 5. The wage rat of all employee recei, ing more than 

the 111inimum rate herein pre~cribecl, which have not been adjusted 

since June 15, 1933, hall be reviewed and such adjustments made 

therein as are equitable in the light of all the circum tances but in' 

no ca c hall the wage rate · be clecrea ed. \Vithin ixty (60) days 

after the effective date hereof the Ba ic Code Authority shall report 

to the Adrnini trator the action taken by all members under this 

Section. SE noN 6. Office boys and girl under eighteen ( 18) years of age, 

to the extent of no more than 5% of the total number of employees 

described in cction 2 of thi Article, may be employed at a wage of 

not lef- than 80 / of the minimum prescribed by said Section provided that at least one uch office boy or girl may be employed by 

each member. SEcTr x 7. A per. on " -ho e earning capacity is limited becau e of 

age, physi'-- al or menial handicap or other infir'lnity may be emplo ed 

on light work at a wage below the minimum establishe l by this Ba ·ic 

Code if the cm1 loyer obtains from the State authority, designated 

by the · nitecl States Department o:f Labor, a certificate authorizing 

such per ·on' employment at ·uch wage and for uch hours as shall 

be tated in the ertificate. Sn~h authority shall be guided by the 

in trnction. of the 1J nited State Department of Labor in i uing 

certificates to . uch persons. Each employer hall file monthly with 

the Ba i Code Authority a list of all uch person employed by him 

showing the wage paid to and the maximum hour of work for uch 

employee·. 

ARTICLE YI-GENERAL LABOR PRonsIOx 

SECTIO~ 1. No per on under ixteen (16) years of age shall be 

employed in the Inclu try. No per on under eighteen (18) year of 

age ·hall be employed at operation or occupations which are hazard.-

au· in nature or dangerou to health. The Code Authority shall 

submit to the Aclmini -tra tor within sixty ( 60) day after the eff ecti ve elute of thi Code a li t of such operations and oc upation . In 

any tate an emplo;yer shall be deemed to have complied with this 

provi ion a._ to ao·e if he hall have on file a certificate or permit luly 

sign l by the authority in uch State empowered to i ue employ- ment or age certificates or permits showing that the employee i of 

the required age. 

5615::? 0 -, 544-8-34- 2 
558 

SECTION 2. Employees shall have the right to organize and bargain 

collectively through re.presentatives 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 repre entatives or 

in self-organization or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection. 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. Employers shall comply with the maximum hours of 

labor, minimum rates of pay and other conditions of employment 

approved or prescribed by the President. 

SECTION 3. No provision in this Code shall supersede any State or 

Federal law which imposes on employers more stringent requirements as to age of employees, wages, hours of work, or as to safety, 

health, sanitary or general working conditions or insurance or fire 

protection, than are imposed by this Code. 

SECTION 4. No employer shall reclassify employees or duties of 

occupations performed or engage in any other subterfuge for the purpose of defeating the purposes or provisions of the Act or of this 

Code. 

SECTION 5. All employers shall keep posted copie of Articles IV, 

V and VI of this Basic Code in conspicuou places accessible to 

employee. 

SECTION 6. Every employer shall make r easonable provisions for 

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

hours of their employment. Standards for safety and health shall 

be submitted by the Basic Code Authority to the Administrator 

within six (6) months after the effective date of this Code. 

SECTION 7. The Ba~ic Code Authority shall make a study of 

conditions in the Industry to determine the £ea ibility of the adoption 

of a shorter working week and shall, within three (3) months after 

the effective date of this Code, make a report of it findings to the 

Administrator. The Basic Code Authority shall also submit to the 

Administrator within six (6) month after the effective date of this 

Code a plan for the stabilization and regularization of employment. 

SECTION 8. The manufacture or partial manufacture of any product 

of the Industry in homes shall be prohibited. 

ARTICLE VII-REPORTS AND STATISTICS 

SECTION 1. The Basic Code Authority shall require from all members such reports as are necessary to eff er·tuate the purpose of this 

Basic Code and the National Industrial Recovery Act. No publication thereof to anyone or in any manner shall be made other than in 

combination with similar information furnished by other members 

in which ca e publication hall be made only in such manner as will 

avoid the disclosing Neparately of . uch confidential information 

except in the case of Basic Code violation. 

SEcTIO~ 2. The Basic Code Authority hall make ·uch reports to 

the Admini trator as he may require. SECTION 3. In addition to information required to be submitted to 

the Basic Code Authority, there shall be furni hed to government 

agencies uch statistical information as the Administrator may deem 
559 

necessary for the p urpose recited in Section 3 (a) of the Act. 

Nothing contained in thi Corle shall reli Ye any member of any 

exi ting obligation to fur nish report. · to any gov rnment agency. 

ARTICLE VIII-J. f O.i. OPOLIES 

SEL TIO:N" 1. No provi ion of thj Ba ic Code hall be so a pp lied 

as to permit monopolie or monopoli tic practices, or to eli11inate, 

oppress or liscriminate ao·ain ,t mall enterpri es. 

ARTICLE I X-REC01'I1'.IEND) .. TIO NS 

SECTION 1. The Basic Code Authority may from time to time on 

it own initiative or on recommendation by a Sup1 lemental Code 

A uthority, present to the Administrator recommendations ba ed 

on conditions in the I ndu try which will tend to effectuate the operation of thi Ba ic Code and/ or the r pectiYe Supplementa l Code 

and t he policies of the A.ct. Such r ecommendation when approved 

by the Administrator, after such notice and hearing as he shall prescribe, hall have the same force and effect as other proyision of this 

Basic Code and/ or the respective Supplemental Code. 

ARTICLE X-GEXERAL PROYISIONS 

SECTION 1. Any work or proce s incidental to and carried on by a 

member at hi plant a a part of the manufacture of any product 

of the Ind ustry shall be regarded as a part of this Industry. 

SECTION 2. Such of the provisions of t his Basic Code and/ or 

Supplemental Code~ which are or may become a part hereof as are 

not r equired to be included therein by the Act, may, with the approval of the Administrator, be modified and eliminated a changes 

in circumstances or experience may indicate. 

SECTION 3. T his Ba~ic Code and/ or such Supplemental Cod s a.s 

are or may become a part hereof are expressly made subject to the 

right of the President, in accordance with the provisions of Section 

10 (b) of t he A.ct, from time to time to cancel or modify any order, 

approval, license, rule or regulation issued under Title I of said 

Act, and to cancel or modify his approval of such Codes or any 

conditions impo ed by him upon his approval t hereof. 

SECTION 4. This Basic Code hall become effective on the second 

Monday after the date upon which it shall be approved by the 

President of the United States. 

Approved Code No. 412. 

Registry No. 409- 04. 
EXHIBIT A 

SUPPLEME~TAL CODE FOR THE TRADE MAN FACTURERS DIVISION 

OF THE LOOSE LEAF AND BLANK BOOK I DU TRY 

ARTICLE I-PURPOSE 

SECTION 1. The purpo._c of this Supplemental Code is to supplement tbe Basic 

Code of tbe Loose Leaf and Blank Book Industry to make it specifically applicable to the Trade Manufacturers Division of such Industry. 

ARTICLE II-TRADE MANUFACTURING DIVISION 

SEcTio 1. Thi Di'vi ion shall include all members who sell the pro<lucts of 

the Indu. try to distributors for resale. 

ARTICLEJ III-S PPLEMENT~L CO!JID AliTHORITY 

SECTIO 1. There shall forthwith be constituted a Supplemental Code Authority of th 'l'rade Manufacturers DiYi ion of the Loo e Leaf and Blank Book 

Industry consi ting of three persons elected in the following manner at a 

meetino- ·alled for such purpose within tliirty (30) day after the a11proval of 

thi Supplemental Code. 

(a) Th ~ecretary of the Loose Leaf and Blank Book Manufacturers Association hall notify a ll known member' of the Trade Manufacturer Did ' ion 

at lea t ten ( 10) d:.1ys 1n·ior to such meeting. 

(b) E:.tcb as._ nting member shall furni h to tl1e Secretary a certifiell record 

of its sa le.· to di tributor for re ale for the petiocl .January 1, 1933 to Decembe1· 31. Hl1

:33. Su ·h information shall be k pt confidential by the Secretary. 

( ·) Ea ·h member actually engaged in selling products of the Industry to 

di tributor for resale will be entitled to one vote for its first $50,000 worth of 

sales to distributor for resale for tlle period January 1, 19'33 to December 31, 

183:3. Each meml)er will b entitled to one ad litional ,ote for each aclclitional 

$100,000 worth of certified sa les during the period January 1, 1!}33 to December 

31, 1933. 

( d) A nominating com mitt e will be cho ·en by n majority ,ote from those 

pre · nt at tl1e meeting. Nominations by the Committe "·ill be submitted to the 

full m eting. Opp-0rtunity will be given for additional n ruinations nnd the 

Su111;lemental Code Authority will be elected by mnjority vote a· cle. cribed in 

Se<.: tiun ( c) . 

(e) In addition to the membership a . pro,icled in °ction 1 of this Article, 

the Aclmini. trator may designate one or more per on: to . ene on tlle Supplemental Cod Authority fo r rncb term as he may fix. The person or persons o 

de ignated "hall b:.we no vote and sha ll serve without compensation from the 

Inclu ·try. 

8mcno.T 2. The Supplemental Code Authority shall be ·hari:,ec1 generally with 

the duty of administering this Supplemental Code. If the Aclmini trator ·hall 

determine that any action of the Supplemental Code Authority may be unfair 

or unju:c;t or contrary to the public inter e t, the Achnini trator may require that 

such action be u pended to afford an opportunity for investigation of the 

m rit of uch action and further con iderati n by tl1e Suprilemental Code 

Authority or agcn y pending final action which shall not be effective unle s t he 

Administrator approves or unless he shall fail to cli approYe after thirty day·s 

notice to him of intention to proceed with su<.:h a ·tion in its original or modified 

form. 

SYCTIO T 3. Each inclustrial a ociation directly or indirectly participnting in 

the selection or activitie of the Supplemental Code .Authority shall (1) impose 

no inequitable re trictions on member hit) ancl (2) submit to th Administrator 

true copic of it arti ·le of a ·sociation, by-laws, reg:ulations and any amendments when made tbt'reto, together with uch otlwr information a to member- ship, organization and actiYities a s the Admini. trntcr may deem necc sary 

to effectuat the purposes of tl1e Act. SECTION 4. In orclcr that the Supplemental oll Authority hall at all times 

be truly representative of the Industry and in other re pect' comply with the 

proYi ion of the A ·t, the Administrator may prescribe uch hearing ns he 

( 500) 
561 

may deem proper and thereafter, if he shall find that the Supplemental 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 selection of th.e Supplemental Code Authority. 

SECTION 5. The expenses of administering this Supplemental Code shall be 

borne pro rata in accordance with a formula to be adopted by the Supplemental 

Code Authority, subject to the approval of the Administrator, by all members 

of the Industry who accept the benefit of the services of the Supplemental 

Code Authority or otherwise assent to this Supplemental Code. 

SECTION 6. Tbe Supplemental Code Authority may use such trade associations and other agencies as it deems proper for the carrying out of any of the 

acth-ities provided for herein, provided that nothing herein shall relieve the 

Supplemental Code Authority of its duties or responsibilities under this Supplemental Code, and that such trade associations and agencies shall at all times 

be subj~t to and comply with tbe provisions hereof. 

SECTION 7. Nothing contained in this Supplemental Code shall constitute 

the members of the Supplemental Code Authority partners for any purpose. 

Nor shall any member of the Supplemental Code Authority be liable in anY, 

manner to anyone for any act of any other members, officer, agent, or employee 

of the Supplemental Code Authority. Nor shall any member of the Supple .. mental Code Authority, exercising reasonable diligence in the conduct of hi.S 

duties hereunder, be liable to anyone for any action or omission to act under 

this Supplemental Code, except for bis own willful misfeasance or nonfeasance, 

ARTICLE IV 1-AOCOUNTING-SElLLING 

SEOTION 1. The Supplemental Code Authority shall, as soon as practicable, 

cause to be formulated an accounting system and method of cost finding and/or 

estimating capable of mm by all members of tbe Industry. After such system 

and methods have been formulated and approved by the Administrato,r, fuU 

details concerning them shall be made available to all members. Thereafter, 

all members shall determine and/or estimate cost in accordance with the principles of such method. 

SECTION 2. The Supplemental Code Authority may from time to time determine that an open price plan of selling such product or products of the Industry 

as it shall specify shall be put into effect on such date as it shall fix. Notice 

of such determination shall be announced to all known members of the Industry who manufacture such products not less than thirty (30) days prior tOI 

the date so fixed. 

SECTION 3. At least ten (10) days prior t o such date, all members of this 

Division shall file with the Supplemental Code Authority, or such agent or 

agents as it may designate, a schedule of p1ices and terms o.f sale for all such 

products. SECTION 4. All such schedules shall be in such form as the Supplemental 

Code Authority shall prescribe and shall contain all information necessary to 

permit an exact determination of the net price per unit after a ll discounts 

or other deductions have been made, whether pertaining to a single order, a 

commitment for future delivery or a contract. All such original schedules 

shall become effective on the date specified in Section 2 of thi Article. 

SECTION 5. A revised schedule or schedules, or a ne-w schedule or schedules, 

may be filed by a member with the Supplemental Code Authority at any time. 

Any schedule or notice filed hereunder shall become eff~tive t en (10) days 

after the date of filing provided, however, that an increased price may 

become effective at such earlier date as the member filing the same shall fix. 

SECTION 6. The Sunplemental Code Authority shall promptly supply all members of the Division"" who manufacture any particular product with copies of 

all schedules and revised schedules which pertain to such product. On receipt of information that a schedule then on file has been revised, or that a 

new schedule has been filed, any member of the Division may file a revised 

schedule conforming as to price and terms to the schedule of such other 

ruember and effective on the same date. SECTION 7. No such schedule of prices and term_s of sale filed by any member1 

or in effect any time, shall be such as to permit the sale of any product at 

less than the cost thereof to such memb 0 r determined in the manner provided 

in Section 11 of thi Article provided, however, that any member may be 

1 See paragraph 2 of order approving this Code. 
562 

notice to the Supplemental Code Authority adopt as his own a lower price 

filed by another member of this Division. Such adoption shall become automatically void upon the withdrawal or revision upward of the price adopted. 

SECTION 8. No member who shall have filed a price for any product of the 

Industry shall sell such product for less than such price or upon terms or 

conditions more favorable than stated in such price schedules. 

SECTION 9. The Supplemental Code Authority shall furnish at cost to any 

interested person or persons copies of any price schedules which may have 

been filed. Any such price schedules shall be made available to such persons 

at the same time that they are sent to members. 

SECTION 10. No member shall sell any product of the Industry for which no 

open price plan is in effect at less than the cost thereof to such member determined as provided in Section 11 of this Article, except to meet the price of 

a competitor whose price does not violate such Section. 

SECTION 11. Cost, for the purpose of this Article, shall be determined pursuant to the method of accounting and costing prescribed as provided in Section 1 of this Article, as soon as such method is adopted and approved, and 

theretofore pursuant to the method employed by such member subject to such 

preliminary rules as the Supplemental Code Authority shall from time to 

time prescribe with the approval of the Administrator. 

SECTION 12. Nothing herein contained shall be construed to prevent the disposition of distress merchandise required to be sold to liquidate a defunct or 

insolvent business or of discontinued lines, damaged goods or seconds in such 

manner, at such price and on such terms and conditions as a member shall 

publish with the Supplemental Code Authority prior to the sale thereof. 

ARTIOLEJ V-PL.ANNING .AND RESEARCH 

SECTION 1. In order that economics in manufacture and distribution, standardization and simplification of Industry products, and more efficient methods 

of conducting the business of the Industry may be developed, the Supplemental 

Code Authority shall cause to be established in this Division a Planning and 

Classification Board which shall from time to time make studies and recommendations to the Supplemental Code Authority on any phase of the business of the 

Industry. 

ARTICLEl VI-TRADE PRACTICES AND CUSTOMS 

SECTION 1. The following are hereby constituted Trade Practices for the 

Industry and failure to comply with the provisions thereof shall be a violation 

of this Code : 

(a) Members of the Industry shall not practice deception in regard to that 

which is sold or its selling price by false or misleading descriptions, statement, 

record or undisclosed consideration. 

(b) Members shall refrain from dumping, extension of stated credit and 

secret r ebates. 

( c) l\Iembers shall not wilfully injure by falsely defaming a competitor's 

goods, cr edit or ability to perform his contracts. 

( d) Members shall not wilfully induce or attempt to induce the breach of a 

competitor's contract. 

(e) No member 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, 

with or 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 so far as such articles are 

actually u sed for commercial bribery as herein defined. 

(f) No member of the Indu try shall ship goods on consignment, except under 

circumstances to be defined by the Supplemental Code Authority where peculiar 

circumstances of the Industry require the practice. 

ARTICLE VII-EFFEarITEJ DATE 

SEJCTION 1. This Supplemental Code shall become effective on the second 

M-onday after the date upon which it shall be approved by the President of the 

United States. 
EXHIBIT B 

SUPPLEMENTAL CODE FOR THE DIRECT MANUFACTURERS DIVISION 

OF THE LOOSE LEAF AND BLANK BOOK INDUSTRY 

ARTICLE I-PURPOSE 

SECTION 1. The purpose of this Supplemental Code is to supplement the 

Basic Code of the Loose Leaf and Blank Book Industry to make it speciflcall~ 

applicable to the Direct Manufacturers Division of such Industry. 

ARTICLE II-DIRECT M.A.NUFACTUREil.S DIVISION 

SECTION 1. This Division shall include all members who sell the products 

of the Industry direct to industrial, commercial and institutional users, or to 

wholly or partially owned purchasing subsidiaries of such users. 

ARTICLE Ill-SUPPLEMENTAL CODE AUTHORITY 

SECTION 1. There shall forthwith be constituted a Supplemental Code Authority of the Direct Manufacturers Division of the Loose Leaf and Blank Book 

Industry consisting of three persons elected in the following manner at a meeting called for such purpose within thirty (30) days after the approval of this 

Supplemental Code: 

(a) The Secretary of the Loose Leaf Manufacturers Institute shall notify 

all known members of the Direct Manufacturers Division at least ten· (10) days 

prior to such meeting. 

(b) Each assenting member shall furnish to the Secretary a certified record 

of its sales of Industry products direct to industrial, commercial and institutional users or to wholly or partially owned purchasing subsidiaries of such 

users for the calendar year ending December 31, 1933. Such information shall 

be kept confidential by the Secretary. 

(c) The voting power of the members of this Division shall be determined as 

follows: 

A Class A member is on the value of whose shipments, as defined in 

Section 1 hereof, is less than one-fifth of the highest value reported by any 

member for such year. Each Class A member shall be entitled to one vote. 

A Class B member is one the value of whose shipments thus reported is 

more than one-fifth, but less than two-fifths, of such highest value reported. 

Each Class B member shall be entitled to two votes. 

A Class C member is one the value of whose shipment thus reported is 

more than two-fifths, but less than three-fifths, of such highest value reported. 

Each Class C member shall be entitled to three votes. A Class D member is one the value of whose shipments thus reported is 

more than three-fifths, but less than four-fifths, of such highest value reported. 

Each Class D member shall be entitled to four votes. 

A Class E member is one the value of whose shipments thus reported is fourfifths of the highest value, or more. Each Class E member shall be entitled 

to five votes. 

The Secreta.ry shall certify to each member his designation of the class 

of such member, but shall make no disclosure of the specific data upon which 

such designation is fixed. 

( d) A Nominating Committee will be chosen by a majority vote from 

those present at the meeting. Nominations by the Committee will be submitted 

to the full meeting. Opportunity will be given for additional nominations and 

the Sunolemental Code Authority will be elected by maioritv vote a de cribed 

in Section ( c) . (e) In addition to the membership as provided in Section 1 of this Article, the 

Administrator may designate one or more persons to serve on the Supplemental 

Code Authority for such term as be may fix. The person or persons so desig- nated hall have no vote and shall serve without compen ation from the 

Industry. 

(563) 
564 

SECTION 2. The Supplemental Code Authority shall be charged generally with 

the duty of administering this Supplemental Code. If the Administrator shall 

d'etermine that any action of the Supplemental Code Authority may be unfair 

or unjust or contrary to the public ix,terest, the Administrator may require that 

such action be suspended to afford an opportunity for investigation of the 

merits of such action and further consideration of the Supplemental Code 

Authority or agency pending final action which shall not be effective unless the 

Administrator approves or unless he shall fail to disapprove after thirty days' 

notice to him of intention to proceed with such action in its original or modified 

form. 

SECTION 3. Each industrial association directly or indirectly participating in 

the selection or activities of the Supplemental 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 purpose of the Act. 

SECTION 4. In order that the Supplemental Code Authority shall at all times be 

truly representative of the Industry and in other respects comply with the 

provisions of the Act, the Administrator may prescribe such hearings as be may 

deem proper and thereafter, if he shall find that the Supplemental 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 selection of the Supplemental Code Authority. 

SECTION 5. The expenses of administering this Supplemental Code shall be 

borne pro rata in accordance with a formula to be adopted by the Supplemental 

Code Authority, subject to the approval of the Administrator, by all members 

of the Industry who accept the benefit of the services of the Supplemental Code 

Authority or otherwise assent to this Supplemental Code. 

SECTION 6. The Supplemental Code Authority may u se such trade associations 

and other agencies as it deems proper for the carrying out of any of the activities 

provided for herein, provided that nothing herein shall relieve the Supplemental 

Code Authority of its duties or responsibilities under this Supplemental Code, 

and that such trade associations and agencies shall at all times be subject to 

and comply with the provi ions hereof. 

SECTION 7. Nothing contained in this Supplemental Code shall constitute the 

members of the Supplemental Code Authority partners for any purpose. Nor 

shall any member of the Supplemental Code Authority be liable in any manner 

to anyone for any act of any other member, officer, agent, or employee of the 

Supplemental Code Authority. Nor shall any member of the Supplemental 

Code Authority, exercising reasonable diligence in the conduct of his duties 

hereunder, be liable to anyone for any action or omission to act under this 

Supplemental Code, except for his own willful misfeasance or nonfeasance. 

ARTIOLEJ IV-AccoUNTING-SELLING 

SECTION 1. The Supplemental Code Authority for this Division shall, as soon 

as practicable, cause to be formulated an accounting system and method of cost 

finding and/or estimating capable of use by all members of the Industry. 

After such system and methods have been formulated and approved by the 

Administrator, full details concerning them shall be made available to all 

members. Thereafter, all members shall determine and/or estimate cost in 

accordance with the principles of such methods. 

SECTION 2. The Supplemental Code Authority may from time to time determine that an open price plan of selling such products of the Industry as it 

shall specify shall be put into effect on such date as it shall fix, provided, that 

such plan shall have been approved by the Administrator. Notice of such 

determination shall be announced to all known members of the Industry, who 

manufacture such products, not less than thirty (30) days prior to the date 

so fixed. 

SECTION 3. No member shall sell any product of the Industry at less than 

the cost thereof to such member determined as provided in Section 4 of this 

Article, except to meet the price of a competitor whose price does not violate 

such Section. 

SECTION 4. Cost, for the purpose of this Article, shall be determined pursuant 

to the method of accounting and costing prescribed as provided in Section 1 of 

this Article, as soon as such method is adopted and approved, and theretofore 
565 

pursuant to the method employed by such member subject to such preliminary 

rules as the Supplemental Code Authority for this Division shall from time to 

time prescribe with the approval of the Administrator. 

SECTION 5. Nothing herein contained shall be construed to prevent the dispo- sition of distress merchandise required to be sold to liquidate a defunct or 

insolvent business, or of discontinued line , damaged goods or seconds, in such 

manner, at such price and on such terms and conditions as a member shall 

publish with the Supplemental Code Authol'ity for this Division prior to the 

sale thereof. 

SECTION 6. Nothing herein contained shall be construed to preYent the fulfillment of a bona fide contract existing on the effective date of this Code. Such 

contracts shall, however, be reported by each member to the Supplemental Code 

Authority for this Division within thirty (30) days after the effective date of 

this Code. 

ARTICLE V--PLANNING AND RESEARCH 

SECTION 1. In order that economies in manufacture and distribution, standardization and simplification of Industry products, and more efficient methods 

of conducting the business of the Industry may be developed, the Supplemental 

Code Authority shall cause to be established in this Divi ion a Planning and 

Classification Board which shall from time to time make studies and recommendations to the Supplemental Code Authority on any phase of the business 

of the Industry. 

ARTICLE VI-TRADEJ PRACTICEIS AND Cu TOMS 

SECTION 1. The following are hereby constituted Trade Practices for the 

Industry and failure to comply with the provisions thereof shall be a violation 

of this Code: 

(a) Members of the Industry shall not practice deception in regard to that 

which is sold or its selling price by false or misleading descriptions, statement, 

record or undisclosed consideration. 

(b) Members shall refrain from dumping, extension of stated credit and 

secret rebates. 

( c) Members shall not wilfully injure by falsely defaming a competitor's 

goods, credit, or ability to perform his contracts. ( d) Members shall not wilfully induce or attempt to indu e the breach of a 

competitor's contract. 

( e) No member shall give, permit to be given, or dire tly 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, with or 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 so far as such 

articles are actually used for commercial bribery as herein defined. (f) No member of the Industry shall ship goods on consignment, except under 

circumstances to be defined by the Supplemental Code Authority where peculiar 

circumstance of the Industry require the practice. 

ARTICLE VII-EFFECTIVE DATE 

SECTION 1. Thls Supplemental Code shall become effective on the second 

Monday after the date upon which it shall be approved by the President of the 

United States. 

0 


UNIVERSITY OF FLORIDA 

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