Approved Code No. 119 Registry No. 405-01 

NATIONAL RECOVERY ADMINISTRATION 

C·ODE OF FAIR COMPETITION 

FOR THE 

NEWSPRINT INDUSTRY 

AS APPROVED ON NOVEMBER 17, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART / 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

f Au O ~ ~.:..:- ,. ----

U.1. DEP09fTO 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich. : 2213 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamb€r of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas Citi, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisv-ille, KY. : 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Cmrtomhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 933 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 Building. 

Cll) 
EXECUTIVE ORDER 

CODE OF FAIR COMPETITION FOR THE N EWSPilINT INDUSTRY 

An application having been duly rn.ade, pursuant to and in full 

compliance with th€ provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for my approval of a Code of 

Fair Competition of the Newsprint Industry, and hearings having 

been held thereon and the Administrator having rendered his report 

containing an analysis of the said Code of Fair Competition together 

with his recommendations and findings with respect thereto, and the 

Administrator having found that the said Code of Fair Competition 

complies in all respects with the pertinent provisions of Title I of 

said Act and that the requirements of clauses (1) and (2) of subsection (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by Title I of 

the National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, do adopt and approve the report, recommendations, and 

findings of the Administrator and do order that the said Code of 

Fair Competition be and it is hereby approved, however, feeling 

that the minimum wage for this industry should be not less than 

forty ( 40) cents per hour, my order of approval is subject to the 

following condition : 

That within 90 days from the effective date of this Code the 

Administrator hold such further hearing upon such notice as he, 

in his discretion, shall fix for the purpose of determining the adequacy 

of the minimum wages established in said Code, after which his 

report and recommendation shall be subnutted to me for further order 

which order shall have the effoct of a condition to my approval of 

this Code. 

THE WHITE HousE, 

N 01Jember 17, 1933. 

Approval recommended: 

HUGH s. JOHNSON, 

Administrator. 

216~3°-244-34--33 

FRANKLIN D. ROOSEVELT. 

(Ill) 
THE PRESIDENT, 

OCTOBER 26, 1933. 

The White House. 

Sm: This is a report of the hearing on the Code of Fair Competition for the Newsprint Industry in the United States, conducted in 

Washington on September 6, 1933, in accordance with the provisions 

of Title I of the National Industrial Recovery Act. 

WORKING HOURS 

This Code provides for a standard 40-hour week for all but a 

small portion of the employees in the Industry. In order to provide 

flexibility necessary to meet unusual conditions, such as variation in 

water supply, etc., provision is made for a 40-hour week averaged 

over a 13-week period with a limitation on day workers of 48 hours 

in a single week with time and one third for hours worked in excess 

of 8 in a single day. 

No such provision is made :for tour workers who desire to be free 

to exchange shifts. Provision is also made for additional hours for 

them to meet situations where the work requires the help of men 

from an off-duty shift to change wires and wash and clean the machines after a run. Such work is too small in amount and too irregular to justify employment of an additional shift. 

Employees not engaged directly in production, of whom there 

are only a few in each plant, are on a 42-hour basis averaged over a 

4-week period. vVatchmen may work 56 hours per week, and office 

employees 40 hours per week averaged over a year, but not more 

than an average of 48 hours per week in any quarter. In emergency 

cases, restrictions are removed for employees engaged in repair and 

maintenance work. Regular reports of hours worked are required. 

WAGFS 

The basic minimum wage rate for mechanical workers is 38 cents 

per hour. Provision is also made for a 5¢ lower hourly wage for 

women, but it is expressly provided that men and women doing the 

same work shall receive the same pay, and that the Code Authority 

shall file with the Administrator a description of all occupations in 

which women are employed. 

ECONOMIC EFFECT OF THE CODE 

The Newsprint Industry is in a very serious condition. Consumption has fallen from 3,800,000 tons in 1929 to 2,800,000 tons in 1932. 

The capacity of the mills in the United States is about 1,800,000 tons. 

In 1929 they produced 1,400,000 tons and in 1932 1,00 ,000 tons. 

The price has fallen from $65 per ton delivered in 1929 to $40 in 

1933. 

(IV) 
V 

It is doubtful whether even the most efficient mills can produce 

paper at this price in either Canada or the United States. In fact, 

five out of eight of the largest producers in the United States are 

in r eceivership, as well as practically all of the Canadian mills, 

which are not supported by their affiliates. 

As newsprint is imported duty free the United States and Canadian branches of the Industry are practically one from a competitive standpoint, and consequently the manufacturers in the United 

States can obtain no reimbursement through increased prices for any 

additional costs which ;znay be imposed upon them by this Code. 

The condition of the Newsprint Industry has a depressing and 

disturbing effect on the general paper industry, both because newsprint mills can and do shift over to other types of paper, and because 

the price of newsprint has a pronounced influence on the price of 

other paper. 

Newsprint contracts are generally made for the calendar year and 

offerings for 1934 are now being made. Some offers as low as $30 

to $35 per ton, delivered, have been made by Canadian mills. The 

paper Industry as a whole is in something of a panic for fear that 

a lower price for newsprint will be established and that this will 

result in the inability of the Industry to meet its increased costs 

under the National Industrial Recovery Act. 

In spite of this situation, the Newsprint Industry has shortened its 

working hours from 48 to 40 per week and increased its wage rates 

substantially by this Code. Employment will be increased only 

a.bout 10% by this change because the average actual work week has 

been only slightly over 40 hours. The real problem of the Newsprint 

Industry i not to increase employment, but to maintain employment 

at its pre ent manufacture. It is estimated, however, that the total 

increase in pay rolls in the Industry as a r esult of the Code will be 

about 15% to 20%. Under the circumstances, I am of the opinion that the Industry has 

offered the maximum of which it is capable and that the Code is 

satisfactory in all other r e pects. 

FINDI:X GS 

The Administrator find that: 

(a) The Code as recommended complies in all r espects with the 

pertinent provisions of Title I of the Act, including without limitation, subsection (a ) of Section 7 and subsection (b) of Section 10 

thereof; and that 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership ther ein and is truly representative of the 

Paper and Pulp Industry; and that 

( c) . The Code as recommended is not designed to promote monopoli~s 01: t~ eliminat~ or oppre s small.enterprises and will not oper ate 

to d1scnmmate against them, and will tend to effectuate the policy 

of Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code~ be appr o-ved. Respectfully submitted. 

H UGH S. JOH N SON' 

Administrator. 
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CODE OF FAffi COMPETITION FOR THE NEWSPRINT 

INDUSTRY 

To effectuate the policies of Title I of the National Industrial 

Reco,ery Act the following is hereby established as the Code of Fair 

Competition for the above industry, and shall be binding on every 

member thereof. 

ARTICLE I-DEFI~ITIONS 

1. The following words are used in this Code with the meanings 

herein set forth : 

" Newsprint "-The word " newsprint " is used in this Code with 

the same meaning with which the words" standard newsprint paper " 

are used in paragraph 1672 of the Tariff Act of 1922, and in paragraph 1772 of the Tariff Act of 1930. 

"Industry "-The manufacture in the United States from wood 

pulp and/or other stock of newsprint and all other papers, except 

rotogravure paper, when such other pap~rs are manufactured and 

sold for regular use in the making of daily newspapers. 

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

such industry. > 

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

"Administrator "-The National Recovery Administrator. 

"The Association "-The Association of Newsprint Manufacturers 

of the United States. 

ARTICLE II-OnGANIZATION 

1. The Advisory Committee of the Association is hereby designated as the agency for administering this Code, and is hereby constituted and hereinafter referred to as the "Code Authority." The 

Administrator may designate three (3) persons as additional members of such Code Authority who shall have no vote, but in all other 

respects shall be members thereof. 

2. The expenses of administering this Code shall be borne pro rata 

by all members of the Industry who accept the benefits of the Code 

Authority or otherwise assent to this Code, in accordance with a 

formula to be ~dopted by the Code Authority. The Association shall 

be responsible for the payment of such expenses. 

ARTICLE III-HouRs OF LABOR 

1. No pa per machine shall be operated in excess of 144 hours in 

any week. 

2. Employees in the industry shall not be required or permitted 

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

schedule: 

(1) 
2 

Schedule of working hours 

(a) ,v atchmen: 8 hours in any one day and 56 hours in any one 

week. 

( b) Chauffeurs, truckmen, switching crews, engineers, firemen and 

electric and hydroelectric operators and filter-plant employees: 168 

hours in any period of four consecutive weeks, but no more than 10 

hours in any one day and 48 hours in any one week. 

( c) Tour-workers in continuous process operations: 8 hours in 

any one day and an average of 40 hours per week in any period of 13 

consecutive weeks; provided, however, that additional hours may be 

worked- (1) To avoid a shut-down due to the temporary absence of a relief 

worker; (2) In changing wires and machine clothing; and · (3) In 

clean-ups, wash-ups, and ordinary repairs and adjustments in cases. 

where a machine is shut-down for a period of not less than eight 

consecutive hours. 

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

in any plant, mill, or factory or on work connected with the operation of any plant, mill, or factory: An average of not more than 40 

hours per week in any period of 13 consecutive weeks, but not more 

than 48 hours in any one week, provided, however, that time worked 

in excess of eight hours in- any one day shall be paid for as not less 

than time and one third. 

( e) Executives and their personal secretaries and other employees 

regularly engaged in a supervisory capacity receiving $35.00 or more 

per week and outside salesmen: No limitation. 

(f) All other employees: An average of 40 hours per week in any 

calendar year and an average of not to exceed 48 hours per week 

in any period o:f 13 consecutive weeks. Provided, however, that no 

limitation on hours of work contained in said schedule shall apply 

to employees of any class when engaged in emergency repair or 

emergency maintenance work involving break-downs or protection of 

life or property. 

3. At such intervals as the Code Authority shall prescribe, every 

member shall report to the Code Authority (a) the number of manhours worked under subdivisions c (1) and c (2) of said schedule 

and the ratio which said man-hours bear to the total number of 

man-hours of labor under subdivision c; and (b) shall furnish the 

Code Authority such information as it may require in order to 

enable it to determine whether the limitations contained in said 

schedule have been exceeded. 

4. No employee shall be permitted to work for more than one 

member of the Industry an aggregate number of hours in excess of 

the number prescribed in said schedule. 

ARTICLE IV-WAGES 

1. The minimum rate of wage of any laborer, mechanical worker, 

or artisan 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, 38 cents per hour. 

Female labor, 33 cents per hour. 
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Provided, however, that where a state law provides a higher minimum wage than is provided in this Code no person employed within 

such state shall be paid a wage below that required by such state 

law. 

2. Piece workers shall be paid at rate which will J ield a worker 

for an hour's work not less than the minimum rates prescribed. 

3. The minimum rates of wages for all other employees except 

commission salesmen shall be as follows: Not less than $15 per 

week in any city of over 500,000 population, nor less than $14.50 

per week in any city between 250,000 and 500,000 population, nor 

less than $14 per week in any city between 2,500 and 250 000 population, nor less than $12 per week in towns of less than 2,500 

population. 

4. The minimum wages hereby prescribed shall not in any way 

be considered as a discrimination by reason of ex and where, in any 

case, women do substantially the same work or perform substantially the same duties under the same conditions as men they shall 

receive the same rate of wages as men receive for doing uch work 

or performing such duties. The Code Authority shall prepare and 

file with the Administrator within ninety days after the effective 

date of this Code, a description of all occupation in the indu try 

in which women are employed. · 

5. The wage rates of all employees receiving more than the minimum rates herein prescribed shall be reviewed and such adjustments, 

if any, made therein as are equitable in the light of all the circumstances. Within ninety (90) days after the effective date hereof, the 

Code Authority shall report to the Administrator the a tion taken 

by all members of the industry under this section. 

6. A person whose earning capacity is limited because of phy ical 

or mental deficiency, age, or other infirmity may be employed on 

light work at not less than eighty (80) percent of the minimum wage 

prescribed in Section 1 hereof, if the State Authority designated 

by the United States Department of Labor shall have i sued a cer- tificate authorizing the employment of such person on such ba. is, 

provided, however, that the total number of suc.h employees in any 

one plant shall not exceed three (3) percent of the total employees 

in such plant. So much of thi Section as require the i uance 

of such a certificate shall not take effect until sixty ( 60 days after 

the effective date of this Code. 

ARTICLE V-GENERAL LABOR PROVISIONS 

1. No person under sixteen (16) years of age hall be employed in 

the industry nor anyone under eighteen (18) years of age at operations or occupations hazardous in nature or detrimental to health. 

The Code Authority shall submit to the Administrator within sixty 

(60) days after the effective date of this Code a list of such occupations. In any State an employer shall be deemed to have complied 

with this provision if he shall have on file a certificate or permit duly 

issued by the authority in such State empowered to issue employment or age certificates or permits showing that the employee is of the 

required age. 

2. Employee shall haYe the right to organize and bargain collectively through representatives of their own choosing, and shall be 
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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. 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. 

3. Labor agreements now in force between members and their employees shall be affected only by such provisions of this Code as may 

prescribe higher wages and shorter hours than are provided for in 

such agreements. 

4. Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes of the Act. 

5. All employees shall post full copies of this Code in conspicuous 

places accessible to employees. 

6. Standards for safety and health shall be submitted by the Code 

Authority to the Administrator within six (6) months after the 

rffective date of this Code. -

· 7. The Code Authority shall make a study of conditions in the 

Industry to determine the feasibility of the adoption of a shorter 

working day and shall, within three (3) months after the effective 

date of this Code, make a report of its findings to the Administrator. 

The Code Authority shall also submit to the Administrator within 

six months aft-er the effective date of this Code a plan for the stabilization and regularization of employment. The Code Authority 

may also submit recommendations to the Administrator for the establishment of rules relative to work on Sundays and holidays, to a 

weekly day of rest, and to overtime work generally and rates of 

wages therefor. Such recommendations, when approved by the Administrator, shall have the same force and effect as other provisions 

of this Code. 

ARTICLE VI-AccouxTING 

1. The Code Authority shall, as soon as practicable, propose a 

standard method of accounting and costing for the industry and submit the same to the Administrator. When it shall have been approved by the Administrator, every member shall use an accounting 

and costing system which conforms to the principles of, and is at 

least as detailed and complete as, such standard method. 

ARTICLE VII-REPORTS; STATISTICS 

1. Each member shall prepare and file with the Code Authority 

at such time and in such manner as it may prescribe, statistics of 

plant capacity, production, sales in units and dollars, stocks on 

hand, number of employees, wage rates, employee earnings, hours of 

work, and such other data or information as the Code Authority or 

the Administrator may from time to time require, and in addition, 

shall furnish government agencies such statistical information as the 
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Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act. 

2. Except as otherwise provided in the Act, all statistics, data, and 

information filed with or required by the Code Authority in accordance with the provisions of Section 1 hereof shall be confidential 

and the statistics, data, and information of one member shall not be 

revealed to another member. No such data or information shall be 

published except in combination with other similar data and in such 

a manner as to a void the disclosure of confidential information. 

3. The Code Authority shall make and file with the Administrator 

such reports as the Administrator may from time to time require. 

ARTICLE VIII-VIOLATIONS 

1. The failure on the part of any member of this industry to comply with the provisions of this Code or to perform any obligation 

imposed on him thereby shall constitute a violation of the Code. 

2. The Code Authority shall investigate alleged violations of this 

Code and make reports thereon to the Administrator. 

ARTICLE IX-GENERAL PROYI IONS 

1. This Code may, with the approval of the President, be amended 

except as to provisions required to be included therein by the Act. 

2. If any member of the industry is engaged in any other industry, 

the provisions of this Code shall apply to and affect only that part 

of his business which is included in the industry. 

3. The Code Authority may confer with the members of the industry and the consumers of its product in respect of the stabilization of the industry and the elimination of unfair practices and destructive competitive prices, and may formulate and submit to the 

Administrator its recommendations to that end. Such recommendations when approved by the Administrator shall have the same force 

and effect as any other provisions of this Code. 

4. The Code Authority may secure current information concerning 

the competition in domestic markets of imported newsprint, and if it 

shall find that such newsprint is being imported into the United 

States in substantial quantities or increasing ratio to domestic production and on such terms or under such conditions as to render ineffective or seriously endanger the maintenance of this Code, it may 

complain to the President pursuant to the provisions of Section 3 ( e) 

of the National Industrial Recovery Act and petition for suitable 

restrictions on the importation of such newsprint. 

5. In order to maintain at all times an adequate domestic supply 

of raw material for the Industry, it is the declared purpose of the 

Industry to conserve forest resources and bring about the sustained production thereof. The Code Authority shall cooperate 

with the Secretary of Agriculture and other National and State 

Officials and Agencies and with the Code Authorities of other 

Industries in planning such practical measures as may be necessary 

to accomplish such declared purpose, and shall, upon the request 

of the Secretary of Agriculture, join with the Lumber and Timber 
6 

Products Industries in any conference which may be held pursuant 

to the provisions of Article X of the Code of Fair Competition 

of the Lumber and Timber Products Industries, approved by the 

President on August 19, 1933. 

6. The trade standards and customs covered by the appendix 

hereto attached are made a part hereof, and any deviation from 

them is a violation of the Code. 

7. This Code and all the provisons thereof are expressly made 

subject to the right of the President, in accordance with the provisions of Section 10 (b) of the National Industrial Recovery Act. 

from time to time to cancel or modify any order, approval, license, 

rule, or regulation, issued under said Act, and specifically to the 

right of the President to cancel or modify his approval of this 

Code or any conditions imposed by him upon his approval thereof. 

8. This Code shall become effective on the second Monday after 

its approval by the President. 
APPENDIX 

TRADE CUSTOMS AND TRADE PRACTICES 

1. Newsprint, other than tinted news, is white, cream white or blue 

white, and mild variations thereof. 

2. Every manufacturer shall deliver as newsprint paper, as nearly 

as pra.cticable, paper of an average basis weight of 32 lbs. Five 

( 5) percent over or under specified base of weight shall be considered good delivery :for individual rolls. Orders for heavier 

weight bases ( over 24 x 36-32 lbs. to 500 sheets) shall be furnished 

at no price concession. New print shall not be sold -on a production 

basis. 

3. No newsprint shall be designated a 'Culled" and sold at a 

reduced price. 

4. The billing weight of roll newsprint shall be the gross weight2 including paper and wrappers, less only the weight o:£ cores ir 

returnable cores are used. Sheet newsprint shall be billed at the 

ordered weight unless there is a shortage in excess of 21⁄2 percent, 

in which event paper shall be billed at the actual scale weight. 

5. Terms-net cash United States Funds, 30 days from date of 

shipment; or :from date of withdrawal from warehouse in the case 

of water shipments; or 15th of month for shipments made during 

preceding month or any other mutually agreeable arrangement 

which contemplates an approximate thirty day cash settlement. 6% 

interest shall be paid on all amounts remaining unpaid on due dates. 

Time of payment may be extended beyond thirty days, provided 

interest at the rate of 6% per annum is charged after thirty days 

from date of shipment; or from date of withdrawal from warehouse 

in the case of water shipments. 

6. Returnable cores, either paper or iron, shall be charged to the 

purchaser at 2 cents per running inch and shall be returned 

promptly, freight prepaid, to the manufacturer. Cores shall be 

credited to the purchaser a.t the invoiced price when a prepaid bill 

of lading showing the number and sizes of cores returned to mill o:f 

manufacturer is received by the manufacturer. Nonreturnable cores 

shall be included in invoice price of paper and shall not be 

returnable. 

7. No allowance shall be made for waste, damage, or paper left 

on cores. In case of claim of any nature applying on any shipment, 

the manufacturer shall be notified immediately, but no claim shall 

be allowed for consequential damage. 

B: Miscellaneous Differentials: For newsprint in sheets the differentials shall not be less than those stated in the following schedule: 

White Colored 

For sheets 150 sq. ln., and larger __________________ per ton__ 5. 00 10. 00 

For sheets 72 sq. in. to 149 . q. in ______________________ do ____ 10. 00 15. 00 

For sheets 36 sq. in. to 71 sq. in ________________________ ao __ __ 15. 00 20. 00 

(7) 
8 

These differentials shall be with relation to the price o.f white 

newsprint in rolls. 

Two dollars per ton shall be charged for skid loads if more than 

3,000 lbs.; $3.00 per ton on quantities from 3,000 lbs. to 2,000 lbs.; 

and $5.00 per ton for quantities of 2,000 lbs. and under. 

Press trimming ,shall be charged for, over the sheet price, as 

follows: 

$1.00 per ton for one side. 

$2.00 per ton for two sides. 

$3.00 per ton for either three or four sides. 

If sheet news is packed in skeleton frames, this charge shall be 

$5.00 per ton over the sheet price. 

9. The foregoing trade customs and practices with re,spect to newsprint shall also apply to all other products of the industry. 

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