Approved Code No. 199 Registry No. 308-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CORK INDUSTRY 

AS APPROVED ON JANUARY 12, 1934 

WE DO OUR PART 

0= 

U.l. OE~TOP.Y 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

v 

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1 Foreign and Domestic Commerce. 

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Approved Code No. 199 

CODE OF FAIR COMPETITION 

FOR THE 

CORK INDUSTRY 

As Approved on January 12, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE CORK INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of the Code of 

Fair Competition for the Cork Industry, and hearings having been 

duly held thereon and the annexed report on said Code, containing 

findings with respect thereto, having been made and directed tD 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 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 promote the policy and purposes of said Title of said Act; and do hereby order that said Code 

<>f Fair Competition be and it is hereby approved. 

HUGH 8. JOHNSON, 

Ad7ninist?·ator for Industrial R ecovery. 

Approval Recommended: 

GEORGE L. BERRY, 

Division Administrator. 

WASHINGTON, D.C., 

J anua;ry 12, 1934. 

31503°----313-38----34 (45) 
The PRESIDENT, 

The White H ottse. 

Srn: The public hearing on the Code of Fair Competition for the 

Cork Industry of the United States, submitted by the Cork Institute 

of America, located at 5935 Grand Central Terminal, New York, was 

conducted in "\Vashington, D.C., on the 25th of October, 1933, in 

accordance with the provisions of the National Industrial Recovery 

Act. The Association claims to represent 98% of the Industry. 

The maximum hours established under this Code are forty ( 40) 

per week, averaged over a three-month period, with a limitation of 

forty-eight ( 48) hours in any one week. Exceptions are allowed for 

executives, technical workers, or supervisors who receive not less 

than thirty-five ($35.00) dollars per week, and to their inm1ediate 

nonproductive personal assistants receiving not less than twenty-five 

($25.00) dollars per week, and outside salesmen; also employees engaged in emergency repair work, firemen, engineers, truck drivers, 

and shipping crews, provided they are paid one and one-half times 

the regular rate of pay for all hours per week over forty-four (44). 

vV a tchmen are allowed fifty -six (56) hours per week, provided they 

are required to work only six days per week. 

In 1929 this industry operated approximately 53 hours per week, 

and in 1931 approximately 50 hours per week. During 1929 approximately 3.842 wage earners were employed, and in 1931 approximately 3,018 wage earners were employed. In order to bring 

employment back to the 1929 level it would be necessary to adopt a 

39.3 hour week. In view of these facts a 40-hour week would appear 

equitable and justifiable, reab orbing, as it will, approximately 755 

wage earners in this industry. 

The minimum wages established in this Code are thirty-eight (38·¢) 

cents per hour for males and thirty cents (30¢) per hour for females. 

Protection of employees on piecework performance is guaranteed. 

Exceptions to the minimum wage are allowed to learners, office 

boys, and n1es engers, who shall receive 80 percent of the minimum, 

and to handicapped persons whose earning capacity is limited, provided the emplo er obtains a certificate from the State authority 

designated by the United States Department of Labor. 

Wages in this Industry represented 18.3 percent of the value of 

products in 1929, compared with 16.5 percent for a.ll industries com- bined. In 1931 wages in this line of activity repre ented 20.4 percent of the value of products, compared with 17.4 percent for 

eombined indu tries. 

'iV age earners in 1931, on a 50-hour basis, were paid an average 

of 38.6 cents per hour. 

The increase in price to the purchaser should not represent more 

than 7.4 :percent by the increased wage rates and hortened hours. 

If wages m this industry are maintained at the 1929 hourly average, 

(46) 
47 

i.e., 39.7 cents per hour, and on the basis of a 40-hour week, the total 

pay roll would increase $87,943.00. 

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 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 

organizatjon of industry for the purpose of cooperative action 

among the trade groups, by inducing and maintaining united action 

of labor and management under adequate governmental sanctions 

and supervision, by eliminating unfair competitive practices, by 

promoting the fullest possible utilization of the present productive 

capacity of industries, by avoiding undue restrictions 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 unemployment, by improving standards of labor, and by otherwise rehabilitating industry. 

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

(c) The Code as approve l 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 assocjation is a trade 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 teps of the economic process have not 

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

This lndustry has cooperated in a mo t satisfactory manner with 

the Administration in the preparation of this Code. From the evidence adduced during this hearing and from recommendations and 

reports of the various Advisory Boards, it is believed that this Code 

as now proposed and revised represents an effective, practical, equitable solution for this Industry and for these reasons has been 

approved. 

Respectfully, 

JANUARY 12, 1934. 

HUGH s. JOHNSON' 

Administr·at01'. 
CODE OF FAIR COMPETITION 

FOR THE 

CORK INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, this Code is established as a Code of Fair Competition 

for the Cork Industry and shall be the standard of fair competition 

for this Industry and binding on every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. Wherever used in this Code or in any subdivisional 

Code or amendment made a part hereof, the terms hereinafter defined in this Article shall, unless the content shall otherwise clearly 

state, be the respective meanings in this Code and in such subdivisional Codes and amendments. 

SEc. 2. The term " industry ", as used herein, includes the manufacture and sale, including jobbing and wholesaling, of the products 

of the industry, and branches or subdivisions thereof as may from 

time to time be included under the provisions of this Code. 

SEc. 3. The term "products of this industry", as used herein, 

includes corkwood and ground cork converted into cork products of 

all descriptions, including: cork insulation and cork insulation accessories; cork stoppers; cork composition articles and specialtiesi· 

cork liners, whether plain or in combination with paper, metal foi 

or other coating materials; cork marine goods; cork floor tile; and 

all other products made primarily of cork which are manufactured 

and sold by members of the Cork Industry. This includes also 

special blocks with or without binder used exclusively for low 

temperature insulation. 

SEc. 4. The term "employee" as used herein includes anyone 

engaged in the industry in any capacity receiving compensation for 

his service, irrespective of the nature or method of payment of such 

compensation. 

SEc. 5. The term ''employer" as used herein includes anyone by 

whom any su,_ch employee is compensated or employed. 

SEc. 6. The term ~'learners" as used herein shall mean any employee who has had no previous experience or employment in this 

industry. 

SEc. 7. The term "member of the industry" includes anyone engaged in the industry as above defined, either as an employer or on 

his own behalf. 

SEc. 8. The term "Institute" shall mean the Cork Institute of 

America. 

SEc. 9. The term " Board of Directors " shall mean the Board of 

Directors of the Cork Institute of America. 

(48) 
49 

SEo. 10. The term " Secretary " shall mean the Secretary of the 

Cork Institute of America. 

SEc. 11. The term "Division/ Divisional Group" shall mean the 

divisions of the Cork Institute of America which, as now constituted, 

are as follows : 

(a) Cork Insulation :.Manufacturers Division. 

(b) Cork Stopper Manufacturers Division . 

. (c) Cork Composition and Cork Specialties ~fanufacturers Division. 

(d) Cork Marine Goods Manufacturers Division. 

(e) Cork Floor Tile l\1anufacturers Division. 

(f) Cork Bulletin and Display Board Manufacturers Division. 

SEc. 12. The terms "Act" and "Administrator " as used herein 

shall mean respectively the National Industrial Recovery Act and 

the Administrator f or Industrial Recovery. 

ARTICLE III-HouRs 

MAXIMUM HOURS 

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

average of forty (40) hours per week in any three (3) months' period 

nor more than forty-eight ( 48) hours in any one week, except as 

herein otherwise provided. 

EXCEPTIONS AS TO HOURS 

SEc. 2. The maximum hours of work stipulated in this Article 

shall not apply to executives, technical workers, or supervisors who 

receive not less than thirty-five ($35.00) dollars per week; nor to 

their immediate nonproductive personal assistants who receive not 

less than twenty-five ($25.00) dollars per week; nor to outside salesmen; nor to any employee engaged in emergency repair work involving break-downs or protection of life or property; nor to firemen, 

engineers, truck drivers, and shipping crews, provided, however, 

that one and one half times the regular rate of pay shall be paid to 

employees engaged in emergency repair work, firemen, engineers1 truck drivers and shipping crews for all hours worked in excess or 

forty-four ( 44) per weeK. 

SEc. 3. Watchmen shall not be employed for more than fifty-six 

(56) hours in any one week, provided, however, that they shall not 

be employed for more than six (6) days in any one week. 

TEMPORARY EMPLOYEES 

SEc. 4. Overtime at the rate of time and one half shall be paid 

to any employee for all hours worked per week in excess of forty 

( 40) when the period of his employment is less than three months 

and when the hours of his employment average more than forty 

(40) hours per week for the period of such employment. 

EMPLOYMENT BY SEVERAL EMPLOYERS 

SEc. 5. No employee shall be permitted to work for a total number 

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

week, whether employed by one or more employers. 
50 

ARTICLE IV-WAGES 

MINIMUM WAGES 

SECTION 1. No employ-:>e, hired on an hourly basis, shall be paid 

less than at the rate of thirty-eight (38¢) cents per hour for male and 

thirty (30¢) cents per hour for female employees. 

FEMALE EMPLOYEES 

SEc. 2. The minimum rates established by this Article shall not in 

any way be considered as a discrimination by reason of sex, and 

where in any case female employees perform substantially the same 

work as male employees, they shall reoeive the same rate of compensation as male employees. 

PIECE-WORK COMPENSATION-1\HNIMUM WAGES 

SEc. 3. This article establishes a minimum rate of pay which shall 

apply, irrespective of whether an employee is actually compensated 

on time rate, piece-work performance, or other basis. 

MINIMUM WAGE FOR OFFICE, CLERICAL, ETO. 

SEc. 4. No accounting, clerical, office, service or sales employee ( exc 

cept outside salesmen) shall be paid less than :fourteen ($14.00) 

dollars per week. 

EXCEPTIONS TO MINIMUM WAGES 

SEc. 5. The minimum wages stipulated for employees in Sections 1 

and 4 of this Article shall not apply to learners, office boys, and 

messengers, but the minimum rate of compensation for these employees shall be not less than eighty percent (80%) of the minimum 

rates established in Sections 1 and 4 of this Article, and the total 

number of such persons employed by any member of the industry 

shall not exceed five percent ( 5%) of the total nmnber of regular 

employees engaged by such member, except that those members of the 

industry employing less than one hundred (100) wage earners shall 

be entitled to employ one learner or one office boy or one messenger 

to each five ( 5) regular wage earners, but in no case more than a 

total of five ( 5) such employees. Learners shall not be employed 

as such for a period longer than six ( 6) months. 

HANDICAPPED PERSONS 

SEc. 6. A person whose earning capacity is limited because of age 

or physical or mental handicap may be employed on light work at a 

wage below the minimum established by this Code if the employer 

obtains from the State authority designated by the United States 

Department of Labor a certificate authorizing his employment at ~uch wages and for such hours as shall be stated in the certificate. 

Each employer shall file with the Code Authority a list of all such 

persons employed by him. 
51 

WAGES ABOVE MINIMUM 

SEc. 7. It is the policy of the members of this industry to refrain 

from reducing compensation for emplqyment which compensation 

was, prior to June 16, 1933, in excess of the minimum wage herein 

set forth, notwithstanding that the hours of work in such employment may be reduced; and all members of this industry shall endeavor to increase the pay of all employees in excess of the minimum 

wage, as herein set forth, by an equitable adjustment of all pay 

schedules. 

ARTICLE V-GENERAL LAB{)R PROVISIONS 

CHILD LABOR 

SECTION 1. No person under sixteen (16) years of age shall be 

employed in the Industry. No person under eighteen (18) years 

of age shall be employed at operations or occupations which are 

hazardous in nature or dangerous to health. In any State an employer shall be deemed to have complied with this provision as to 

age if he shall have on file a certificate or permit duly signed by the 

Authority in such State empowered to issue employment or age certificates or permits showing that the employee is of the required age. 

PROVISIONS FROM THE ACT 

SEc. 2. In compliance with Section 7 (a) of the Act it is provided: 

(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall 

be free from the interference, restraint, or coercion of employers of 

labor or their agents in the designation of such representatives or 

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

of collective bargaining or other mutual aid or protection. 

(b) 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 

(c) Employers shall comply with the maximum hours of labor 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

RECLASSIFICATION OF EMPLOYEES 

SEc. 3. No employer shall reclassify employees or duties of occupations performed by employees or engage in any other subterfuge 

for the purpose of defeating the purposes or provisions of the Act or 

of this Code. 

STANDARDS FOR SAFETY AND HEALTH 

SEc. 4. Every employer shall make reasonable provision for the 

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

of their employment. 
52 

STATE LAWS 

SEc. 5. 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, or sanitary or general working conditions, than are imposed 

by this Code. 

POSTING 

SEc. 6. All employers shall post and keep posted complete copies 

of the wage, hour, and General Labor Provisions of this Code in 

conspicuous places accessible to employees. 

ARTICLE VI-ORGANIZATION AND CoNSTITUTION OF CoDE AuTHORITY 

ADMINISTRATION 

SECTION 1. A Code Authority is hereby established to cooperate 

with the Administrator in the administration of this Code and shall 

consist of the membership of the Board of Directors of the Institute. 

The Administrator, in his discretion, may appoint not more than 

three additional members without vote, and without compensation 

from the Industry, to serve for such period of time, and to represent 

the Administrator or such group or groups as he may designate. 

SEc. 2. In order that the 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 provide such 

hearings as he may 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, he may require an appropriate modification in the method of selection of 

the Code Authority. 

POWERS AND DUTIES 

SEc. 3. The Code Authority shall have the following further 

powers and duties, the exercise of which shall be subject to the right 

of the Administrator, on review, to disapprove of any action taken 

by the Code Authority: . (a) To adopt bylaws and rules and regulations for its procedure 

and for the administration and enforcement of the Code. 

(b) To use the secretary or any other person, association, or 

group, as it may deem proper, for the carrying out of its activities 

provided for herein, provided that nothing herein shall relieve the 

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

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

to and comply with the provisions hereof. 

(c) To make investigations as to the functioning and observance of 

any of the provisions of this Code, at its own instance or on complaint by any person affected, and report the same to the Adlnini trator. 

(d) To obtain from members of the Industry such information 

and reports as are required for the administration of the Code and 
fi3 

to provide for submission by' members of such information and 

reports as the Administrator may deem necessary for the purpo es 

recited in Section 3 (a) of the Act, which information shall be 

submitted by members to such administrative and/or governmental 

agencies as the Administrator may designate, provided that nothing 

in this Code shall relieve any member of the industry of any existing 

obligation to furnish reports to any governmental agency. Such 

data shall be compiled by the Secretary in a form which will not 

reveal the data of an individual member of the Industry and in this 

form may be made available to the members of the industry as 

directed by the Code Authority, unless otherwise directed by the 

Administrator. 

(e) To collect statistics of sales, unfilled orders, production, stocks 

on hand, shipments, hours of labor, rates of pay, number of employees, prices, and such other data as may be required by the 

Adm.inistrator, such data to be compiled by the Secretary in a form 

which will not reveal the data of an individual member of the 

industry. 

(f) Upon termination of the activities of the Code Authority all 

data and statistics then on file with the Secretary which were submitted by any member of the industry shall be returned to such 

member upon request unless the disposition of such data and statistics is otherwise directed by the Administrator. 

(g) To allocate assessments among the divisional groups of the 

Institute and to collect from those members of the Industry participating in the activities of the Code Authority an equitable and 

proportionate share of the reasonable expenses of maintaining the 

Code Authority and its activities. 

(h) 'I'o recommend to the Administrator further fair trade practice provisions to govern members of the Industry in their relations 

with each other or with other industries, and to recommend to the 

Administrator measures for Industrial Planning, including stabilization of employment. 

SEc. 4. Each divisional group of the Industry shall have its own 

separate and distinct planning committee, known as the Division 

Executive Committee, and such executive committee shall place in 

writing all of its decisions and recommendations to the Code Authority for approval at least fifteen (15) days before such decisions 

and recommendations are to become effective. If the Code Authority 

disapproves or fails either to approve or disapprove such decisions 

or recommendations within fifteen (15) days after their receipt by 

the Code Authority, the Division Executive Committee shall be entitled to present its recommendations to the Administrator for his 

approval, if the approval of the Administrator is required; and if no 

such approval is required such division may of its own election carry 

out the decisions and recommendations of its Executive Committee, 

all to the end that each division shall be independent and self-governing in all matters relating exclusively to such division. 

SEc. 5. Any action of the Code Authority or of any agency thereof, 

which the Administrator may deem unfair or improper, or contrary 

to the public interest, or which may be reported to him by any 

interested parties as unfair to any private interest, improper or 

contrary to the public interest, may be suspended for such period of 
54 

time, not to exceed thirty (30) days, as he may deem necessary to 

afford an opportunity for investigation into such action. Further 

action by the Code Authority or of any agency thereof may be held 

in abeyance by the Administrator pending his final determination 

of the matter under investigation. 

SEc. 6. No inequitable restriction on admission to membership in 

the Institute or any division thereof participating in the activities 

of the Code Authority shall be imposed, and any member of the 

Industry shall be eligible for membership in the Institute or group 

or divisional group upon compliance with the provisions of the bylaws relating to membership. Any member of the industry who does 

not become a member of the Institute, who participates in the activities of the Code Authority shall pay to the Code Authority such 

proportionate part of the cost of administration of the Code as the 

Code Authority, subject to the approval of the Administrator, shall 

prescribe to be fair and equitable. 

SEc. 7. Nothing contained in this Article shall constitute the members of the Code Authority partners for any purpose, nor shall any 

member of the Code Authority be liable in any manner to anyone for 

any act of any other member, officer, agent, or employee of the Code 

Authority. Nor shall any member of the Code Authority, exercising 

reasonable diligence in the conduct of his duties hereunder, be liable 

to anyone for any action or omission to act under this Code, except 

for his own wilful misfeasance or nonfeasance. 

ARTICLE VII-TRADE PRACTICES 

The following practices shall constitute unfair methods of ·competition for members of the industry and are prohibited: 

1. The false marking or branding of any products of the industry 

in any manner which has the tendency to mislead or deceive customers or prospective customers, whether as to the grade, quality, 

quantity, substance, character, nature, origin, size, finish, or preparation of any product of the industry or otherwise. 

2. The making, or causing, or knowingly permitting to be made 

or published any false, materially inaccurate or deceptive statement 

by way of advertisement or otherwise, whether concerning the. grade, 

quality, quantity, substance, character, nature, origin, size, finish, or 

preparation of any product of the industry or the credit terms, 

values, policies, or services of any member of the industry, or otherwise, having the tendency or capacity to mislead or deceive customers 

or prospective customers. 

3. Maliciously inducing or attempting to induce the breach of an 

existing oral or written contract between a competitor and his 

customer or source of supply, or interfering with or obstructing the 

performance of any such contractual duties or services. 

4. The defamation of competitors by falsely imputing to them 

dishonorable conduct, inability to perform a contract, questionable 

credit standing, or by other false representations or by the false 

disparagement of the grade or quality of their goods. 

5. Unfairly procuring any information concerning the business of 

a member which is properly regarded by him as a trade secret or 

confidential within his organization, other than information relating 

to a violation of any provisions of the Code. 
55 

6. To give, p"rmit to be given, or directly offer to give, anything 

of value for the purpo e of influencing or rewarding the action of 

any employee, agent or representative of another in relation to the 

business of the employer of such employee, the principal of such 

agent or the represented party, without the knowledge of such employer, principal or party. Commercial bribery provisions shall 

not be construed to prohibit free and general distribution of articles 

commonly used for advertising except so far as ·uch articles are 

actually used for co.mmercial bribery as hereinabove defined. 

Paying, allowing, or prom.ising to any purchaser or prospective 

purchaser or to any officer, employee, agent, or representative of any 

such purcha er or prospective purchaser, any payment of money or 

other remuneration directly or indirectly, and/ or the splitting or 

otherwise sharing the commissiou or compen ation of a member's 

salesman or agent or other employee with anyone, and/ or the granting of rebates, credits, discounts, adjustments or similar concessions, 

other than specified in the contract of sale and permitted by the Code. 

7. Noncompliance with the provisions, separately or collectively, 

of any merch.andising plan of the division to which the member belongs which may be submitted through the Code Authority and approved by the Administrator, and/ or in any manner conducting his 

business otherwise than in open compliance with the plans he has 

filed with the Secretary. 

8. To inform a customer or customers, either directly or indirectly, 

concerning any increa es or decreases in prices or changes in discounts prior to the effective date of such new prices or discounts. 

9. The sale by any member of the industry of side products of 

this industry or of any grades of products of this industry other 

than those filed with the Code Authority, except in accordance with 

a plan approved by the Executive C01nmittee and the Code Authority subject, however, to the disapproval of the Administrator. 

10. Using or substituting in a sale any article or material other 

than that specified by the purchaser of any product, or making any 

sale or contract of sale under any description which does not fully 

describe such product in terms customarily used in the industry, 

except that this provision shall not be construed as interfering with 

the practice of the industry in packing private brands of cork 

stoppers for customers such as wholesale druggists, or interfering 

with the eli po ·al of bona fide side products as provided for in 

Section 9 of this Article. 

11. Imitating or simulating any style, design, brand, slogan, or 

advertising copy, or other means of identification solely owned by 

another member of the Industry, for the purpose of misleading or 

deceiving purchasers. 

12. Approaching or enticing the employees of competitors with 

the intent of unduly hampering, injuring, andj or embarrassing such 

competitors in the conduct of their bu iness. 

13. Protecting contract again t a decrease or an increase in price 

except as to the unshipped portion of uch contract . 

14. Aiding or alJetting any person, firm, association, or corporation in any unfair practic set forth in this Code. 

15. Stating in the invoice of any product as the date thereof a 

date later or earlier than the date of the shipment of such product, or 
56 

including in any invoice any product shipped on a date earlier or 

later than the date of such invoice. 

16. The making of any loan to a customer by any member of the 

industry or his employees for the purpose of inducing the sale of 

goods. 

17. Making false or wilfully misleading statements or re-ports, 

written or oral, required pursuant to any of the provisions of this 

Code, or any resolution duly adopted by the Code Authority. 

18. Performing any extra operations on products such as, but not 

limited to, branding cork stoppers, paraffining cork stoppers, cutting 

half sizes, dyeing attachments to cork stoppers, shaping cork stoppers, and packing in units less than the accepted standards, without 

making an adequate charge to cover the cost of such operations. 

19. The subnormal pricing or the granting of a reduced price, 

rebate, or other concession on articles not specifically mentioned in 

this Code to influence the sale of articles covered by this Code. 

20. Supplying special service at reduced rates or gratis, such as 

service of construction superintendent or foreman, or the loan of 

equipment as an inducement toward making a sale of. materials. 

21. Recommending specifications which are known to be faulty or 

hazardous from a construction viewpoint or failing to caution prospective purchasers against the use of such specifications; or secretly 

changing specifications in figuring estimates for the purpose and 

effect of misleading competitors and customers or executing any 

contract other than in strict accordance with the construction specifications on which the contract was estimated and secured. 

22. Accepting or offering to accept securities, bonds, mortgages, 

or stock as whole or part payment for material sold or worlr performed as an inducement to obtain an order. 

23. Incorrectly classifying a customer to enable said customer to 

obtain a price better or terms of sale more favorable than those 

stated in such member's filed price list, terms of sale, or merchandising plan as hereafter provided. 

24. Selling or offering for sale seconds or damaged goods at prices 

lower or terms of sale more favorable than those stated in such 

member's filed price list, terms of sale or merchandising plan, as 

hereafter provided, and in such cases all such goods shall be plainly 

marked or advertised as seconds or damaged goods. · 

ARTICLE VIII-MERCHANDISING PLANS 

SECTION 1. The Executive Committee of each divisional group of 

the industry shall, with the approval of a majority of the members 

of the division representing at least seventy-five percent (75%) of 

the dollar volume of the division's sales for the preceding six (6) 

months' period, prepare its recommendations as to the torm and 

provisions of a merchandising plan to be followed by each individual member of the division concerned, which recommendations 

shall require each individual member of the division in filing his 

own merchandising plan to submit: 

(a) His basic price list. 
57 

(b) Complete schedules of discounts, including extra quantity 

discounts, if any. 

(c) Term of sale. 

(d) His classification of the trade. 

(e) Lists of the various grades of all products which he proposes 

to offer for sale. 

(f) All other conditions in any way affecting any transaction or 

sale of the products of the division. 

In addition to the foregoing information the Executive Committee of any Division may require the submission by the individual 

members of such division of bona fide samples of each grade of the 

products offered for sale, where varying the quality can be used 

to obtain a competitive advantage. All such recommendations and 

merchandising plans prepared by the Executive Committees shall 

be capable of uniform application within the respective divisions 

and shall be submitted to the Code Authority and the Administrator 

for approval, and upon such approval shall have the same force and 

effect as any other provision of this Code. 

SEc. 2. Within fifteeen (15) days after the approval by the Code 

Authority and the Administrator of the Executive Committees' 

recommendations and merchandising plans as provided for in Section 1 of this Article, each individual member of the division concerned shall file with the Secretary his plan for merchandising 

which shall supply the information required and shall be in the 

form approved by the Administrator. Such plan and any revision 

thereof shall remain in force unless and until superseded by the 

filing of a revised merchandising plan, revised price lists and/ or 

discounts. The member's original plan and each revision thereof 

shall state the date on which it shall become effective, which date 

shall be not less than ten (10) nor more than twenty (20) business 

days after filing of same with the Secretary, and each other mem- b~r of the division may file a similar revision to take effect upon the 

same date. The original merchandising plan and all revisions 

thereof filed by each member shall be made available by the Secretary to all other members of the division. 

SEc. 3. No member shall sell any article at prices lower or discounts greater or on terms more favorable than those which he has 

currently on file with the Secretary. 

SEc. 4. Original and revised price lists and/or discounts filed with 

the Code Authority, as hereinbefore provided, shall be available 

through the Secretary to all members of the Industry who handle 

a similar line of goods. 

SEc. 5. No member of the industry shall sell or offer to sell under 

customer's private labBls, or otherwise, qualities other than those 

which he has filed with the Secretary as provided in this article, or 

use grading of qualities as a method of giving buyers extra value 

over that provided in the mem.ber's published grades and terms. 

SEa. 6. Many members of the industry sell their products through 

agents, distributors, jobbers, wholesalers, and/or contractors, while 

others sell their products directly to the ultimate user. In order to 

prevent indirect evasion of the provisions of this Article VIII by 

tho e members selling through agents, distributors, jobbers, wholesalers, and/or contractors, it is hereby provided that the Executive 
lllllllllllilii li~l~ lil II Iii IIi II I IIIIi ~ iil'i illlll lll l 58 3 1262 08585 2670 __ __, 

Committee of each Division of this industry, subject to the approval 

of the Code Authority and the Administrator, shall prescribe appropriate forms of contracts to be entered into between members of the 

industry and agents, jobbers, distributors, wholesalers, and/ or contractors (excluding retailers) for the distribution of the products 

of this industry and the observance of such prices and terms as those 

currently filed with the Code Authority at which the manufacturer 

sells such products. 

SEc. 7. Except as may be subsequently set f orth in a specific or 

supplementary export code for the industry, the provisions of this 

code now or hereafter adopted with regard to prices, discounts, 

deductions, allowances, extras, commissions, or methods and/ or 

terms of sale, are not to apply to direct export sales. The term "export" applies to merchandise shipped to foreign countries other 

than possessions or territories of the United States. 

ARTICLE IX-MODIFICATION 

SECTION 1. This Code and all the provisions thereof are expressly 

made subject to the right of the President, in accordance with the 

provisions of subsection (b) of Section 10 of the Act, from time to 

time to cancel or modify any order, approval, license, rule, or regulation issued under said Act. 

SEc. 2. This Code, except as to provisions required by the Act, 

may be modified or amended on the basis or experience or changes 

in circumstances, such modification or amendments to be based upon 

application to the Administrator and such notice and hearing as 

he shall specify, and to become effective on approval or the Administrator, unless otherwise provided, and when so apfroved shall have 

the same :force and effect as any other provision o this Code. 

ARTICLE X-MONOPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XI-PRICE INCREASES 

SECTION 1. Whereas the policy of the Act to increase real purchasing power will be made more difficult of consummation if prices 

of goods and services increase as rapidly as wages, it is recognized 

that price increases, except such as may be required to meet individual cost, should be delayed, but when made such increases should, 

so far as possible, be limited to actual additional increases in the 

seller's costs. 

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective on the tenth day after its approval by the Administrator, unless otherwise provided. 

Approved Code No. 199. 

Registry No. 308-1-ol. 

0