UNIVERSITY OF FLORIDA 

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3 1262 08486 7 596 

Registry No. 1013-06 

NATIONAL RECOVERY ADMINISTRATION 

PROP·OSED CODE OF FAIR COMPETITION 

FOR THE 

DRY GROUND MICA 

INDUSTRY 

AS SUBMITTED ON AUGUST 31, 1933 

H • 0:-

~..,..o~ I • J 

The Code for the Dry Ground Mica Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE. 

WASHINGTON : 1933 

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

DRY GROUND MICA ASSOCIATION 

(11) 
CODE OF FAIR COMPETITION AND DECLARATION OF 

POLICY ADOPTED BY THE DRY GROUND MICA 

ASSOCIATION 

SECTION I. In order to cooperate fully with the United States 

Government to overcome the present national emergency, the Dry 

Ground Mica Association, as the national association of the Dry 

Ground Mica Industry, devoted entirely to promoting fair competition in this industry, hereby declares its support of the objectives 

'Of the National Industrial Recovery Act. 

The term Dry Ground Mica as used hereinafter includes: (1) 

Dry Ground Mica produced by the grinding of Shop or Scrap 

Mica, (2) Dry Ground Mica Schist, and (3) Underground Mica 

Screenings from China Clay Washings. As applied to this industry, these obj ectives are: 

a. To remove obstructions to the free flow of the aforesaid products in interstate commerce which tend to diminish the amount 

thereof. 

b. To promote the organization of the entire industry for the 

purpose of cooperative action in the said industry and of cooperation 

by this association with such other divisions of this industry as may 

be necessary for the purposes 0f the national emergency. 

c. To induce and maintain enited action of labor and management 

in the said industry, and where necessary, with other allied indus-:-

tries, under such governmental sanction and supervision as may be 

_promulgated under the National Industrial Recovery Act. 

d. To eliminate unfair competitive practices in this industry. 

e. To reduce and relieve unemployment in this industry. 

f. To improve standards of labor in this industry and in the allied 

subdivisions of these industries, and otherwise to rehabilitate the 

said industry. 

ADMINISTRATIVE AGENCY 

SEc. II. A. To effectuate the policy of this Code, the officers of 

ibis association are hereby authorized, with the approval and under 

the direction of the Board of Directors, to establish agencies to 

-collect and compile such information as they may deem necessary, 

to employ an administrator, n11d to levy yearly dues of one hundred 

dollars ($100.00) per mem}Jer, payable semiannually in advance, 

and to make additional asses::::ments against the members, each member to be assessed his pro-rata share, such money to be used for the 

-carrying out and enforcing Jf this Code among all members of the 

industry. 

Each member is to be assessed one and one half percent (1%%) ·of his gross sales, payable Inonthly to the administrator. If, in the 

.judgment of the Board of Directors, this amount does not prove 

9466--33 (1) 
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sufficient, additional pro-rata assessments may be levied. In the · event that at the end of any six months' period there remains a 

surplus in the treasury of the association refunds may be made to 

the members in proportion to their assessments, upon order of the 

Board of Directors, the respective amounts thereof to be determined 

by the administrator. 

B. The Board of Directors of the Association may delegate any 

of its functions and powers under this Code to such members, committees, or agencies, as it may designate or appoint. 

C. This Code shall cease to be in effect, and any agency established 

hereunder shall cease to exist, at the expiration of two years after· the date of the enactment of the National Industrial Recovery Act, 

or sooner, if the President of the United States shall, by proclam.a-· tion, declare that the emergency recognized by Section I of the 

National Industrial Recovery Act has ended. Any provision for the 

continuance of parts of this Code after its discontinuance by the 

national law, shall be made by voluntary agreement of such members- of this association as. may wish to continue the1n under any form of· association that they may elect. 

MEMBERSHIP OF THE DRY GROUND MroA AssoorATION 

SEc. III. A. The association does not intend to impose any inequitable restrictions on admission to membership therein, and, in: 

order to be truly representative of the industry, will invite all manufacturers of Dry Ground Mica and all new manufacturers as they 

come into existence, to join the association. 

B. The articles of the Code in Section V below are designed to 

prevent monopoly and to prevent the elimination or oppression of 

small enterprises in the said industry, and will not operate to discriminate against them and will tend to effectuate the declaration 

of policy of this Code. This association will accept and abide by 

and carry out such conditions (including requirements for the making of reports and the keeping of accounts) for the protection of 

customers, consumers, competitors, employees, and others, and in 

furtherance of the public interest, and such exceptions to and exemptions from the provisions of this Code as the President of the 

United States, or his duly authorized agent or administrator, deems 

necessary to effectuate the policies of the government. 

VIOLATIONs OF THE ConE 

SEc. IV. Ten days after the President of the United States or 

his duly authorized agent or administrator shall have approved this· Code, the provisions of this Code shall be the standards of fair 

competition of the Dry Ground Mica Industry. Any violation of 

such standards in any transaction in or affecting interstate commerce 

in said products shall be deemed an unfair method of competition 

in commerce within the meaning of the Federal Trade Commission 

Act as amended. Any violation of any provision of this Code shall 

be reported by any member of this association. Such violation shall 

be investigated by the administrator of this association, who shall 

report to the Board of Directors of the association with a recom-
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mendation as to the innocence or guilt of the party or parties involved and as to the penalty to be imposed. If the Board of Directors of the association decide that a violation has occurred, the said 

Board of Directors may set a penalty or penalties equal to 50% 

of the amount of the transaction involved, the violation to be based 

on the list price last filed by the violator or violators. "\Vhen there 

occurs a violation of this Code which does not involve a sale or 

other measurable matter of dollars and cents, the Board of Directors shall impose a suitable penalty. Expenses of investigating a 

violation or violations shall be added to the penalties a essed. All 

penalties and assessments shall be payable to the treasurer of the 

Institute and used to defray its expenses of operation. All penalties shall include the expenses of investigating the violation or violations. If the penalty is accepted by the guilty party and paid to the 

treasurer of this association, the matter shall end forthwith. If, 

after a fair hearing and a decision, supported by a majority vote 

of the Board of Directors, the violator of the Code shall not promptly 

accept and pay the penalty imposed, the administrator shall report 

the violator to the President of the United States or to his duly 

authorized agent or administrator, or directly to a district attorney 

of the United States or to a United States District Court, as pro~ 

vided in Section VII of the National Industrial Recovery Act. 

ARTICLES OF CODE 

SEc. V. A. Cooperation between employer and employee. Recog-

-nizing the stability of reasonable profit can come only from increased 

purchasing power of the great majority of our domestic population, 

and since wage-workers make up that great majority, this association 

will first aim its cooperative work at increasing employment, raising 

wages, and improving conditions of labor in the Dry Ground Mica 

Industry. 

Therefore: a. Employees of every manufacturer of Dry Ground 

·Mica 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 or no one seeking employment shall be required 

by any manufacturer of Dry Ground Mica 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; 

c. All manufacturers of the above-named products shall comply 

with the maximum hours of labor, minimum rate of pay, and other 

conditions of employment approved or prescribed by the President. 

d. On and after the effective date, employers in the Dry Ground 

Mica Industry shall not operate on a schedule of hours of labor for 

their employees--except repair shop crews, engineers, electricians, 

firemen, sales, office and supervisory staff, shipping, watching, and 

outside crews and cleaners-in excess of 40 hours per week which 

shall be the standard maxim urn hours per week. 

However, in view of weather conditions which usually influence 

·the closing of plants during a few weeks of rainy weather, an em-
4 

ployer may, with the consent o:f the administrator o:f this association 

increase the weekly hours o:f labor during certain periods, provided 

that in no case shall any laborer, other than those included in the 

exceptions hereinabove named, be permitted to work more than a 

total o:f 1,040 hours during either the six months' period beginning 

February 1 and ending July 31, or the six months' period beginning 

August 1 and ending January 31 o:f any one year. 

e. The minimum rate o:f pay in the said industry shall be 30¢ per 

hour unless the hourly rate :for the same class o:f work on July 15,. 

1929, was less than 30¢ per hour, in which latter case the minimum. 

rate shall not be less than the hourly rate paid on July 15, 1929, 

and in no event less than 25¢ per hour. 

:f. No minor under the age o:f sixteen (16) years s;;hall be employed in the Dry Ground Mica Industry. 

B. Cooperation between competitors. 1. Fair price scale. a. In 

order to be able to shorten hours, establish standard maximum hours 

o:f work lower than present hours, and pay higher wages than at 

present in the above-named industry, it will be necessary to charge 

a price :for the products which will cover all these costs and provide 

a reasonable profit. 

b. To ascertain these costs, a uni:form, accurate cost-accounting 

system is necessary, and every manu:facturer o:f Dry Ground Mica 

shall use an accounting system and a costing system which is to be 

prepared by the administrator o:f this association. No manu:facturer 

shall sell or exchange any products o:f his manu:facture at a price, 

or upon such terms or conditions that will result in the customer 

paying :for the goods received, less than the cost to the seller, determined in accordance with the uni:form and standard method o:f costing hereinabove prescribed, provided, however, that inventories 

which must be converted into cash to meet emergency needs may be 

disposed o:f in such manner and on such terms and conditions as the 

administrator may approve, and as are necessary to move such products into buyer's hands. 

Each manu:facturer o:f Dry Ground Mica shall immediately upon 

adoption o:f this Code by a majority o:f the industry, file with the 

administrator o:f this association a complete price list individually 

prepared by him, showing his current prices and terms o:f payment, 

and the administrator shall immediately send copies thereo:f to all 

known manu:facturers o:f Dry Ground Mica by telegram. 

Revised price lists may be filed :from time to time thereafter with 

the administrator of this association by any manufacturer o:f Dry 

Ground Mica, to become effective ten days a:fter filing and copies 

thereof, with notice of the effective date specified, shall be immediately sent to all known manufacturers of such product who thereupon 

may file, if they so desire, revisions of their price lists which shall 

become effective upon the date when the revised price list first filed 

shall go into effect. 

The administrator of this association shall call for monthly cost 

reports from all manu:facturers of Dry Ground Mica :for the purpose 

of making regular periodic comparisons of all elements o:f cost among 

the various manu:facturers with a view of reducing such cost, especially :for those whose costs may be unusually high. 
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c. Every manufacturer of Dry Ground Mica shall send to the 

administrator of this association a duplicate copy of each invoice of 

sale and of any contract entered into for the sale of any of .his 

products. 

d. Prices on above-named products are made by some manufacturers themselves and in some cases by their selling agents. Prices, 

as referred to in this Code, are those prices made for the manufacturer's product by himself or by his agent. 

e. Carload lot prices shall apply only upon single shipments. 

When, however, goods are moved by truck, 24 hours may be allowed 

for completing a delivery of a carload. 

f. All bags filled with mica are to be billed at a uniform price, 

according to size. The prices thereof are to be included in the price 

list to be filed with the administrator. 

g. Each manufacturer is to establish a uniforn1 cash discount which 

is also to be included in the price list to be filed with the administrator. 

h. All deviations from standards of prices shown in these price 

lists, or all deviations from standards adopted by the association, 

shall be reported promptly and voluntarily by each manufacturer of 

Dry Ground Mica to the administrator of this association. Each 

manufacturer shall reply promptly and accurately to any inquiries 

by the administrator as to any of his prices, terms, standards, or any 

trade practices having a bearina on prices. 

i. In order to have stability of prices, it is nece sary to prevent 

over-production. To prevent over-production, supply and demand 

of above-named products must be known and kept in equilibrium. 

This requires at lea t monthly statistical information covering the 

whole industry regarding supply and demand of above-named products in the hands of importers and domestic producers, selling agents, 

nnd other distributors. Totals of this statistical information, without the possibility of any one concern' figures being revealed to 

other members of the industry, shall be made available to the entire 

industry. To prevent over-production, there is also required a control of production by a fair quota system, but this association believes in first trying out the effects of complete current knowledge 

of supply and demand, to ascertain whether, with such lmowledge 

generally available to all importer and manufacturers, over-production cannot be sufficiently controlled. Thereafter, the administratrator of this association will gather and compile from all importers 

and manufacturers and other sources, and distribute to the members 

of this association, complete current information on the supply and 

demand of the above-named products. 

j. Members shall file with the administrator of this In titute, upon 

his demand, reports covering employment, hour , wages, stocks, shipments, orders, and other facts to be used for statistical purposes, but 

never so used as to reveal the figures of any one member. 

UNFAIR TRADE PRACTICES 

SEc. VI. The following trade abuses and nuisances are unfair and 

uneconomic, or both, and are prohibited and must be discontinued 

upon order of the Board of Directors of this association, conveyed 

to all manufacturers of Dry Ground ~1ica. 
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1. The defamation of competitor:s by falsely imputing to then1 

dishonorable contracts, inability to perform contracts, questionable 

credit standing, or by false representation or false disparagement of 

the grade or equality of their goods, with the tendency and capacity 

to mislead or deceive purchasers, or prospective purchasers, is an 

unfair trade practice. 

2. Indirectly or directly to give or permit to be given, or offer to 

give, money or anything of value to agents, employees, or representatives of customers or prospective customers, or to agents, employees, 

or representatives of competitors' customers or prospective cu,stomers, 

without the knowledge of their employers or principals, as an inducement to influence their employers or principals' purchase or contract to purchase any of above-named products from the nature of 

such gifts or offer, or to influence such employers .or principals to re-

,strain from dealing or from attempting to deal with competitors, is 

an unfair-trade practice. 

3. ~1aliciously inducing or attempting to induce the breach of existing contract between competitors and/ or customers by any false or 

deceptive means whatsoever, or interfering with or obstructing the 

performance of any such contractual duties, or services by any such 

means, with the purpose and effect of unduly hampering, injuring, 

or embarrassing competitors in their business, is an unfair-trade 

practice. 

4. Maliciously enticing away the employees of competitors with 

the purpose and effect of unduly hampering, injuring, or embarrassing competitors in their business, is an unfair-trade practice. 

5. Labor under insanitary or other conditions to be agreed upon 

by the Board of Directors of this as;Sociation as undesirable, .or for 

longer working hours per week than the maximum to be adopted by 

the as;Sociati.on, or at lower wages than the minimum wages adopted 

for the Dry Ground Mica Industry are hereby prohibited. 

SuPPORT oF THIS INSTITUTE 

SEc. VII. Inasmuch as the work of the Dry Ground Mica Association under this Code will be of great benefit to the entire Dry Ground 

Mica Industry and will contribute to the relief of the national economic emergency, all manufacturers of any of the above-named products, whether they are members of the as,sociation or not, shall contribute to the financial support of the association on a fair proportionate basis as hereinabove provided. All manufacturers of any of 

the above-named products shall be invited to become members of the 

Dry Ground Mica Association and they may remain as members as 

long as they perform the obligation,s laid down by this Code. The 

utmost endeavors of the association will be used to induce all manufacturers of any above-named products to become members of the 

association but if any manufacturer of any above-named products 

refuses or fails to become a member of the association, all of the provisions and penaltie,s shall be applied to that manufacturer, just as 

if he were a member of this association. 

In case any manufacturer of any of the above-named products 

should not join this association within 30 days after having received 

such an invitation, application will be made by this association to 

the President of the United States, or his duly authorized agent or 
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administrator, to compel such manufacturer to join the association 

and to contribute his proportionate share to the financial support of 

the association under its rules and regulations, or else be subject to 

the penalties provided under Section IV -B of the National Industrial 

Recovery Act. 

Each corporation, partnership, or individual, doing business as a ~eparate firm, shall have one vote in the affairs of this association. 

This Code of fair competition shall be considered to be the representation of the views of the Dry Ground Mica Industry when it 

shall have been signed by three firms manufacturing the abovenamed products. 

This Code of fair competition is to be in effect and become operative ten days after approval by the President of the United States 

or his regularly authorized representative. 

The Dry Ground Mica Association is hereby designated as the 

agency to conduct all negotiations with the National Recovery 

Administration and to enforce the provisions of this Code. 

The Board of Directors of the Dry Ground Mica Association is 

hereby designated as a standing Committee to represent this Industry in all negotiations with the National Recovery Administration. 

We, the undersigned manufacturers of Dry Ground Mica, hereby 

subscribe to the above code of the Dry Ground Mica Industry. 

AUGUST 10, 1933. 

0 
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