o. 320-04 

NATIONAL RE OVERY AD~UNISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

DOWEL PIN 

MANUFACTURING INDUSTRY 

AS APPROVED ON MAY 22, 193~ 

WE DO OUR PART 

U NI TED STATES 

GOVERNMENT PRINTING OFFICE 

WA BINGTON : 1934 
'l'his publication is for sale by the Superintendent of Documents, Go\'erurnent 

Printing Office, Washington, D.U., and by district offices of the Burea u of ll'oreign 

and Domestic Commerce. 

DISTRlCT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, .Ala.: 257 Federal Building. 

Boston, Mass. : 1801 Custombou::;e. 

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

Churl0ston, S.C.: Chambe r of Commerce Building. 

ChiC'ugo, Ill.: Suite 1706, 201 North Wells Street. 

CleYeland , Oh :o: Chamber of Commer e. 

Dall as, Tex.: Chamber of Commet'ce Building. 

D troit, Mich.: 801 First National Bank Building. 

Uuustuu, Tex. : CLHllllber uf Commerce Building. Indian:.I}J(lli , Ind.: Chamber of Commerce Building. 

J a tksouYille, Fla.: Chamber o.f Commerce Building. 

Kansas Ciry, Mo.: 102.8 .Ba ltimore Avenue. 

Los Angelf's. Calif. : 11133 South Broadway. 

Louisvill . K~ .: 408 F ederal Building. 

Memphis, Tenn.: 229 Federal Building . ..\IiuneapoiL·, Minn.: 213 Fe·leral Building. 

~ew Orleans, La.: Room 225-A. Customhouse. 

New York, N.Y.: 734 Customh ou e. 

Norfolk, Va.: 406 En . t Plume Street. 

Phi! a delphia, Pa.: 422 Commercial Trust Building. 

PHtsburgli. Pa.: Chamber of Commerce Building. 

Portland, Oreg. : 215 w Post Office Building. ~t. Lonis, Mo.: 506 Olive Street. San Frand co, Calif. : 310 Cnstomsouse. Se:1 ttle. WRsh. : 809 Federa l Office Building. 
Approved Code No. 440 

CODE OF FAIR COMPETITION 

FOR THE 

DO'\\TEL PIN MANUFACTURING INDUSTRY 

As Approved on May 22, 1934 

ORDER 

CooE OF F. m .. rPETITI N FOR THE DowEL PrN ~fANUFACTGJUNO 

L.~D TRY 

An application havi1 been duly made pur ... uant to anJ in full 

complian with the pro,-i ions of Title I of the National Indu trial 

Reco1er Act, appro\ecl June 16, 193 for approYal of a Code of 

air Compotition for the Dowel Pin 1\'Ianufacturing In lustry, and 

bearing having been duly held thereon and the annexed report on 

said Code containing find1no-s with resp ct thereto havjng been male 

and dir cted to the President: 

NOW, THEREFORE, on behalf of the Pre ident f the United 

~tnt I Hugh ~. . John on. Administra or for Industrial Recovery, 

pur uant to authority vested in me by Executive Orders of the 

r ident, including Executive Order #6543-A, da ed December 

30 1933 and otherwise· do hereby incorporate by ref renee aid 

annexed report and do find that said Code complies in all r c pects 

with th p rtinent provisions and will promote the policy and purpo es of aid Title of said Act; and do hereby order that aid Code of 

Fair Competition be and it is h reb appr ved. 

II GII s. J HNSON 

Ad7ninistrator for bulustt·ial Recovr:ffY. 

Approval recommended: 

A. R. Gu .. TGY 

Division Administrator. 

\V HI TGTO-T. D.C. 

May !Jf2, 1934. 

61925·----544-130----34 (329) 
REPORT TO TI-IE PRESIDENT 

The PRESIDENT, 

The 1V hite H ou8e. 

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

Dowel Pin Industry, the hearing having been conducted in vVashington, D.C. on April 27, 1934 in accordance with the provisions 

of theN ational Industrial Recovery Act. 

PROVISIONS ON HOURS AND WAGES 

The maximum hours :for employees provided in this Code are 

forty ( 40) hours per week and eight (8) hours per day. vVhen production demands it, a tolerance of eight hours per week is allowed, 

provided this tolerance shall not be allowed for more than six weeks 

in any six months' period, and one and one-third times the normal 

hourly rate is paid for all hours in excess o:f forty per week. 

Employees engaged in emergency maintenance and repair work are 

excepted from hourly limitations and are allowed a one and one-third 

overtime rate of pay. Engineers, firemen and shipping clerks are 

permitted to work nine hours per day but provision is made that 

they shall be paid not less than one and one-third times the normal 

hourly rate for all hours in excess of forty-five per week. "'\Vatchmen 

are permitted to work fifty-six (5G) hours per week. The usual 

exemption is granted to executive and supervisory employees regularly receiving $35.00 or more per week, and to outside salesmen. 

The minimum wage provided for employees is forty ( 40) cents 

per hour. 

CHILD LABOR 

The minimum age provided in this Code is 16 years but in hazardous occupations this age limit is increased to 18 years. 

EOONOl\IIC EFFECT OF THE CODE 

The annual sales in this Industry decreased 64 per cent from 1929 

to 1932. The Dowel Pin Industry is closely related to the Furniture 

Industry and, consequently, the volume of sales is to a great extent 

dependent on the activity in the Furniture Industry. From estimates made by members of the Dowel Pin Industry, when statistics 

for 1933 are compiledj an increase of approximately 39 per cent over 

the 1932 level is expected. 

The average work-week for the year 1933 was 35 hours per week 

and the maximum was 40 hours per week as compared with, 45 hours 

and 49 hotirs, respectively, in 1929. An increase in omployment in 

1934 has brought the aYerage w rk-week to 40 honrs. 

Mini..rnum wages for the year 1933 were reported to be 26.3 cents 

per hour. The adoption of the proposed minimum wage rates is 

(330) 
.~pcctecl to cau'-c an 

1his, tog('thcr ·with the incrc:t. wE>ek will result in an 

n·r that of 1933. 

331 

l!'INOL. 

The ..~.\. s::; tnnt Deputy Administrator in his final rrport to me on 

aid Code ha ,·ing fuund a~ herein set forth and on the ba ... ~is of all 

the proccNlings 1n this matter: 

find that: 

( rr) Said Code is \Yell designed to promote the polic-ies and purposes of Title I of the National Industrial Recovery Act, including 

remoYn l of obstructions to the free flow of interstate and foreign 

:ommcrce which tend to diminish the amount thereof and will pro- ·icle for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade group:,, by inducing and maintainmg united action of labor and management under adequate governmental sanctions and supervision, by 

eliminating unfair competitive practices, by promobng the fullest 

possibl~ ~tilization of the.p~csent productiv.e capacity of inclustrie~, 

by avo1dmg nndue restnchon of productiOn (except as may be 

temporarily required), by increasing the consumption of industrial 

and agricultural products through increasing purchasing po\\er. by 

reducing ancl relieving tmemployment, by improving standards of 

labor, ::mel 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 9?de as aprrov~d compl~es in al~ respe.cts wi.th the pc~­

lnent prov1s10ns of sa1d T1tle of sa1d Act, 1nclud1n~ without lnnitation Subsection (a) o£ Section 3, Subsection (a) ot Section 7, and 

ubsection (b) of Section 10 thereof; and that the applicant association is truly representative of the aforesaid industry; and that 

said associa.tion 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 

·mali enterprises and will not operate to discriminate against them. 

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

cen depri-red of the right to be heard prior to approval of said 

ode. 

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

Rcspectfull y, 

1fAY 22, 1934. 

HuoH S. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE DOWEL PIN fANUFACTURING INDUSTRY 

ARTICLE I-PURPOS:ES 

To effect the policies of Title I of the National Industrial Recovery Act, this Code is submitted as a Code of Fair Competition 

for the Dowel Pin Manufacturing Industry, and upon approval 

its provisions shall be the standards of fair competition for such 

Industry and be binding upon every member thereof. 

ARTICLE II-DEF:INITIONS 

The term "Industry " as used herein includes the manufacture 

and original sale of dowel pins (round pieces of wood commonly 

used to join wood and other materials excluding, however, commercial dowel rods) in all stages of manufacture, and such related 

industries as may from time to time be included under the provisions of this Code. 

The term " member of the industry " as used herein includes, 

but without limitation, any indiviclU!al, partnership, association, 

corporation or other form of enterprise engaged in the industry, 

either as an employer or on his or its own behalf. 

The term "employee" as u ed herein includes any and all persons 

engaged in the industry, however compensated or employed except 

a member of the industry. 

The term "employer" as used herein includes anyone by whom 

such employee is compensated or employed. 

The term "Association" as used herein shall mean the Dowel 

Pin Manufacturers Association. 

The terms "President" "Act" and "Administrator" as used 

herein mean respectively the ' Presjd' ent of the United States, Title 

I of the National Industrial Recovery Act, and the Administrator 

for Industrial RecoYery. 

ARTICLE III-HoURs 

SECTION 1. jJJ aximu1n H ours.-N o employee shall be permitted 

to work in excess of forty ( 40) hours in any one week or eight 

(8) hours in any twenty-four (24) hour period, with the following exceptions: 

(a) Engineers, firemen, and shipping clerks (who shall not be 

permitted to work, however, in e_·ce s of nine (9) hours in any 

twenty-four (24) hour period; provided, however, ihat such employees who work in excess of forty-five ( 45) hours in any one 

week shall receive not less than one and one-third (llh) times 

their normal rate of pay for all hours, or fractions thereof, in excess of forty-five (45) in any one week. 

(332) 
333 

rmit.tcd to work in excess of 

may be permitted to work 

k for not more than six ( 6) 

ection 1 

ne week 

eve'ral E1nployers.-N o employer 

ARTICLE I V-\VAGES 

IX'TTON 1. Minimum 1Vages.-K o employee shall be paid in nny 

ay period less than at the rate of forty cents ( 40t' ) per hour. 

S:ccrro~ 2. Piece-1Vork 001npt'nscdion-Jifinimum, lVa.1e.-This 

Arti(·]e establishes a minimum rate of pay which shall apply rcgarcllef:s (1f sex or of whether an employee 1s compensated on a time rate, 

piN't'work. or other basis. 

SECTIO~ 3. 1Vage Adjustments.- \Vithin sixty (60) days after the 

<'ffective date hereof, employers shaH adjust wage sche,clules in equitable relation to t.he minimum hourly rn.tes provided in this Article, 

f:O far as such adjustments have not been made subsequent to June 16, 

1933; but in no case shall hourly or weekly rates of pay be reduced , 

irrcspectiYe of whether compensation is actually paid on an hourly, 

weekly or other ba~is, nor shall any wages be less tha.n at the minimum rates herein provjded. Each memb~r of tho Industry shall 

rompily report all such adjustments to the Code Authority. The 

ode Authority shall promptly r eport all such adjustments to the 

Administrator. 
334 

SECTION 4. Female employees performing substantially the same 

work as male employees shall receive the same rate of pay as male 

em_ployees. , 

SE"TION 5. Handic "pped Persons.-A person whose earning capacity is limited because of age or phy ical or mental handicap may be 

employed on light work at a wage below the minimum established 

by this Cod.e if the employer obtains from the State Authority or 

other agency d gnated by the United States Department of Labor 

a certificate authorizing his employment at such wages and for such 

hours as shall be stated in the certificate. Such authority or agency 

shall bB guided by the instructions of The United States Department 

of Labor in issuing such certificates. Each employer shall file 

monthly with the Code Authority a list of all s1.1ch p rsons employed 

by him, ~howin~ the wages paid to and the m.aximum hours of work 

for such employee. 

SECTION 6. 1Jfa,nne·r of Payment.-No employer shall make payment lue for servico · rendered except in the form of negotiable currency or checks p.uyable on demand, and no deduction shall be made 

except with the Employee's assent or as required by Federal or State 

laws. Payrnent of all wages shall be at least twice in each calendar 

month. 

ARTICLE T-GENERAL LABOR PROVISIONS 

SECTION 1. Ohild Labo1'.-N o 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. The Code 

Authority shall submit to the Administrator for approval within 

ninety (DO ) days after the effective date ()f this Code, a list of such 

operations or occupations. 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. 

SECTION 2. Provisions f1'0m the Act.-(a) Employees shall have 

the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference, 

r estraint, 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. 

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

minimum r ates of pay, and other conditions of employment approved or prescribed by the President. 

SECTION 3. Evasion Through Subterfuge.-N o employer shall reclassify employees or duties of occupations performed or engage in 

any other subterfuge so as to defeat the purposes or provisions of 

the Act or of this Code. 

SECTION 4. Standards for Safety and H ealth.-Every employer 

shall provide for the safety and health of employees during the 
5 

anrl at the place f th ir mp]oyment. tan [ll'll fo' safety 

an h nlth hall nb1T1it d by the od Authority to the dmmi. -

tra ion for uppro\'al within six months after the eff tive date o:f 

th o e. E TI N 5. ta.te La'WS.- o 1 rovision in this o e hall supersed any tate or Fe 1 ral Law which impo e on mployers more 

strinO" n r CJUir ments a to a of employees, wag , hours of work, 

f t. r health snnitar. or D" 0 D"'ral working conditions, or 

or fire protection, than are imposed by th1s Code. 

E TI T • Postin.c;.- 11 em1loyer hall keep c ntinuously po ted 

copi f thi ode in conspicuous places acces ible to all employees. 

Every m mb r of the indu tr hall comply with all rule. and regulation r lative to the po ting of provisions of Codes of Fair Com· 

petiti n or otherwise which may from time to time be prescribed by 

th ~l_dmini h·ator. 

ECTION 7. omplaint 01' Gidn.c; Evidence.-No employ e ·hull be 

dis harged because he has made omplaint or given e-vidence with 

re pect to an alleged \iolation of the Code. 

ECTION 8. tabilization of Employ111-ent.-Each employer hall, 

to the be 1- of his ability so administer work in his charge a to provide the maximum practical continuity of emplo.'ment f or his personnel. Each member of the Incln try shall make a study a,nd submit 

a plan for regularization and tabilization of employment in his 

plant and shall submit uch plan to the Code Authority. 

ECTION 9. Evas-ion Througl1- Discharging and Rehiring or Replac- ing Employee .-Employees now mployed at '\\·ages abo-ve the minimum shall not be discharged and reemplo3 cd r rerlaced at a lower 

rat of pay, for the purpo e of e\'ading the labor provisions of this 

Code. 

ARTICLE VI-OncANIZATION-PowEns AND DuTIES OF THE 0 onE 

AUTHORITY 

ORG.lXIZATIO~ ... -D CO -sTITUTION 

E TION 1. A Code Authority is hereby established con isting of 

five (5) members to be selected in the following manner: 

(a) Three (3) members of the Code Authority shall be elected 

from among the members of the Association, and two (2) members 

of the ode Authority . hall be elected from among non-member of 

th A. ociation. 

(b) \\ il-hin twenty (20) davs after the effective date of this Code, 

th ' r tar of the Dowel Pin fanufa turers' A ociation shall 

call a m eting of the members of the Indu try for the purpose of 

ele · in" th€' 'ode uthori y. ue notice of this meeting shall be 

sent lJ register d mail to eYery member of the Industry or such 

n ti e may be given by such other methods as will insure all mcmb rs 

f 1 Inclu. try b ing inform d of nch meeting, its pnrp ,se and the 

method £ parti ipati n therein . VoLing shall be by per on, by 

mail r b roxy. 

'n 'I L ~- In a clition t membcr ·hip as above provid d, th r 

may be not more than three m mber without vote o b known as 

Admini trabon n mbcr , to be app inted by the Administrator to 

ITe for such terms as he may p cify. 
336 

8EC'J10N 3. Each trade or industrial association directly or indir ectly participating in the se.lection or activities of the Code Authority shall ( 1) impose. no inequitable restriction on membership, and 

(2) submit to the Administrator true copies of its articles of association, by-laws, regulations, and amendments when made thereto, 

together "-ith such other information us to membership, organization, 

and activities as the Administrator may deem necessary to effectuate 

the purposes of the Act. 

SECTION 4. 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 prescribe such 

hearings as he may deem proper; and thereafter if he shall fincl that 

the Cocle Authority is not truly representative or does not in other 

respects comply with the provisions of the Act, may requir e an appropriate modification of the Code Authority. 

SECTION 5. Nothing contained in this Code shall constitute the 

n1embers of the Code Authority partners for any purpose. Nor 

shall nny 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 r easonable 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 wilfnl malfeusrvnce or nonfeasance. SECTION 6. If the Administrator sh all at anv time determine that 

any action of a Code Authority or any agency thereof may be nnfair 

or unjust or contrn.ry to the public interest, the Administrator may 

require that such action be suspended to afford an opportunity for 

investigation of the merits of such action and further consideration 

by such Code Authority or agency pending final action -..Yhich shall 

not be effeeti ve unless the Administrator approves or unless he shall 

fail to disapprove after thirty (30) dnys' notice to him of intention 

to proceed with such action in its original or modified form. 

POWERS AND DUTIES 

SI:cTION 7. Snbject to such rules and regulations as may be issued 

by the Administrator, the Code Anthorjty shall have the following 

powers and duties, in addition to those authorized by other provisions of this Code. 

(a) To insure the execution of the provisions of this Code and to 

provide fer the compliance of the industry with the provisions of the 

Act. 

(b) To adopt by-laws and rules and regulations for its procedure. 

(c) To obtain from members of the industry such information and 

reports as are r equired for the administration of the Code. In addition to information required to be submitted to the Code Authority, members of the industry subject to this Code shall furnish 

r-::uch statistical information a.s the Administrator may deem necessary 

for the purposes recited in Section 3 (a) of the Act to such Federal 

ancl State agencies as he may designate; provided that nothing in 

this Code shall relieve any member of the Industry of any existing 

obl.iguticns to furnish reports to any Government agency. No 
337 

1 sc to an ' other memb r of the 

th r 1 arty x pt to u~ch ther ovcrnmentnJ 

a m·ty be ir t c1 th lmini trn.t r. 

(d) ' u. e u h ra 1 < '" 'J ·iu.ti n n,nd other ag nci a it d ems 

pr p 1: f r th arr. ino- ou f any of iu u tivities provi d for 

h r in, 1 r i le hat n hing h r in hall reli ve the od Authority 

of i luti r r p n ibilitie un r this de a.nd that such trade 

cia ions an a n i s hall ut aJl time be subject to and c mply 

with th provision her of. 

(e) To ma.ke re mm n lations to the Admini tt·ator for the 

coordin<.tion of the admini tration o:f this ode with such oth r 

code , if any as may be r elat d to or affect nlemb rs of the industry. 

(f) (1) It being found nr ary to support the Admini trat.ion 

o:f thi ode, in order t ff · uate the policy of the Act and to 

maintain the standards of fair competi ion established hereunder, 

the ode Authority is authoriz d: 

(a) To incur such r easonable obligations as are nece sary and 

proper for the foregoing purpo es and to meet such obligatiOns out of fund which hall be held in trust for the 

purposes of the Code and raised as h ereinafter provided; 

(b) To submit to the Administrator for his approval, subject 

to such notice and opportunity to be heard as he may 

deem necessary ; 

1. An itemized budget of its estimated expenses for the 

foregoing purpo es, and 

2. An equitable basis upon which the funds necessary to 

support such budget shall be contributed by all members of the Industry entitled to the benefits accruing 

from the maintenance of such standards, and the administration thereof. 

(c) After such budget and basis of contribution have been 

appro ed by the A lministrator, to determine and collect 

equitable contributions as above set forth, and to that 

end, if nee ar to institute legal proceedings therefor 

in its own name. 

(2) Each member of the indu try shall be liable for his or its 

equitable contribution to the xpense of the maintenance of the 

Code uthority as hereinabove provided. Only members o:f the 

indu try compl ing with the Code and making such contribution 

shall be entitled to parti ipate in the selection of the members of the 

Code Authority or to re eive the benefits of its v luntary activities 

or to make use of any N.R.A. insignia. 

(g) To cooperate with the Administrator in regulating the use of 

any .R.A. in ignia sol ly by those memb rs of the industry who 

haY a Pnted to ancl ar ornplying with, this Co e. 

(l ) To rcconunend t the dministr tor any action or measures 

deem d advisa le, includino- furth r fair trade practi e provisions 

to g vern member of the indu try in their r lations with each 

other r with other industr.i s · measur s for industrial planningl 

and stabilization of mpl yment ; and in l1ding m difi ati ns ot 

this ode which shall b omc ff ti e as l art h ereof upon approval 

y he ministrator after su h notice and hearing as he may 

sp cify. 
338 

(i) To appoint a Trade Practice Committee which shall meet 

with the Trade Practice Committees appointed under such other 

t;uues as may be related to the inclu try' for the purpose of formulating fair trade practices to govern the relationships between employers 

under this code and lmdcr such other codes to tLe end that such 

fair trade prarotices may be proposed to the Administrator as amend- m nts to this Co le and such other codes. (j) To provide appropriate facilities for arbitration, and ubject 

to the approYal of the Aclmjni trator, to prescribo rules of procedure 

and rules to ff ct compliance with awards and determinations. 

ARTICLE VII-Tn<' .. DE PRACTICE R LES 

RuLE 1. Inaccurate A dvertising.-N o member of the industry 

shaH publish advertising (whether printed, radio, display or of any 

other nature), whjch js misleading or inaccurate in any material 

particular, nor shall any member in any way misrepresent any goods 

(including but without limitation its use, trademark, grade, quality, 

origin, size, substance character, nature, finish, material content 

or preparation) or credit terms, values, policies, services, or the 

nature or form of the business conducted. 

RuLE 2. False Billing.-No member of the industry shall knowingly withhold £rom or insert in any quotation or invoice any 

statement that makes it inaccurate in a.ny material pn.rticular. 

RuLE 3. lnaccu1'ate Labelling.-No membei· of the industry shall 

brand, or mark, or pack any goods in any manner \vhich is intended 

to or does de.cei-re or mislead purchaser with respect to the brand, 

grade, quality, quantity, origin, size, substance, character, nature, 

finish, material content or preparation of such goods. 

RcLE 4. Deja11wtion.-N o member of the industry shall defame 

a competitor by falsely imputing to him dishonorable cowluct, 

inability to perform contracts, questionable credit standing, or by 

other false representation, or by falsely disparaging the grade or 

quality of his goods. 

R LE 5. Threats of Law Suits.-No member o£ the industrl shall 

publish or circulate unjustified or unwarranted threats o legal 

proceedings which tend to or have the effect of harrassing competitors or intimidating their customers. 

RuLE 6. Secret Rebates.-N o member of the industry shall secretly 

offer or make any payment or allowance of a rebate, refund, commission credit, unearned discount or excess allowance, whether in 

the form of money or otherwise, nor shall a member of the industry 

secretly offer or extend to any customer any special service or 

privilege not extended to all customers of the same class, for the 

purpose of influencing a sale. 

RuLE 7. Oom11wrcial B1·ibery.-No member of the industry shall 

give, permit to be given, or 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, without the knowledge of such employer, principal or party. This provision shull not be construed to prohibit 

free and general distribution of articles commonly used for ad-
33D 

v r l, mg ex pt far a 'll"h arti 1 s arc a iuully u f r omm r i. l briLen· n ~ h r in. boY d fi n L 

l\ LE . I nriucinq B1·each of Exi-:ting ont1·act .- o member of 

th indu try sl : ll wilfully inc1 u c or utt m t to inclu ·c the br a h 

f xi tino· c ntra ts b tw n ompetitors n l th ir u t m rs by 

nn_ · fal or de ti v m an.· r int rfcrc with or o stru t the I crf rnHllH'l' f uny u h ontr· tual luties or lTi · s by any such 

mea-n "\Yiih th purr l"' and :ff t of hampering, injurin<Y or embarra ing mp tit r in th ir bu in ss. 

R LE . "o rcion.-N o m mber f the industry shall require that 

th 1 ur ha or leac: of any 0 00d be a prerequisit to the purchase 

or l a of n n ther ·oods. RULE 10. D · st1·uctive P1-ice Cutting.-

( a) The Prin ciple.- (i) D tructiv pri e ·uttin<Y is an unfair metho of competition 

and i f orbidden at all tim , irrespective of the exi tence of an 

mer<Yency : 

ii) \Vhen no l larcd mergency exists a.s to any given product.] 

th r i t b no fixed minimum ba is for pric s but it is intended 

that ound o t e timatin5 methods should be us d; 

(iii) \\hen an em rgency exists as to any given product, sale be--

low the lowest reasonable cost of such product, in violation of subse tion ( ) hereof, i forbidden. 

(b) Uniform Cost Accounting.-The Code Authority shall cause 

to b f ormulated an accounting y tern and methods of cost findin~ 

and/ or stim tinO' capable of use by all member of the Industry anct. 

hall ubmit uch y ·t em and methods to the Admini trator for review and approval. After such system and method have been 

formulat d nd approv-ed by the Administrator, full details concerninO' hem hall be made available to all memoors. Thereafter 

it i intended that all members should utilize the principles of such 

ey t m or methods. 

( ) Emergen y (Lo'W st R easonable Cost) .-When an mergency 

xi th c1 Authority may cause an impartial agency to inve -

tigat cost and to d termine the lowest reasonable cost of the product 

afl'e ted b th emcrgenc . Such determination shall exclude all 

ost ler nt et forth in and shall be in all respects subject to such 

rul ·· an l r <Yulation as may be issued by the Administrator and 

ubj ect t hi approval or modification after such notice and opportunity to b hea r as he may prescrjbe. The ode Authorit:y or the 

Adm1ni trator may, from time to time, cause such d terminations 

to b revieYI'C l or r onsirlere and appropriate action tak n. 

( ) Definitions.-... n "Emergency" exists whenever the Administrator de rmine that e tructive price cutting is r n ering in-

:ff • ti e or oriously ndan<Y ring the main e1 ance of the provisions 

of this od . 

(i \Vhen n mer()' ncy xi ts the terms shall have the m ailing 

d dar d in rnl . and regnlc~tion r mul~at d by th Administrator 

on r ommendation of th ode Author1ty or on hi own motion; 

(ii \Yh n an mr ·gency .·i ts, the t rm hall m an any sale in 

viola i n of ·u b. ·tion (c) here f; 

(iii) It hall b an ab lute d f nse to any ha,rge of destructive 

ri · ut inO' if n impartial ag ncy, designated r approved by the 

Aclnuni -tra r, hall fin , 
340 

(aa) That the price complained of is justified by existin"' competition, evidence of which ha been reported to the Code A~thority i 

(bb) That the price complained of is justified as a method ot 

disvosal of dropped lines or seconds, or 

( cc) When no declared emergency exists, that the member charged 

with destructive price cutting has in good faith endeavored to 

make proper use of the announced cost estimating methods. 

RuLE 11. Published Prices.-Each member of the Industry shall 

file with the Code Authority on a date specified by the Code Authority, after reasonable notice, net price sheets, or price lists and 

discount sheets, individually prepared by him, and all terms and 

conditions of sale relating thereto. Such net price sheets, or price 

lists and discount sheets, and/ or terms and conditions of sale shall 

become effective immediately upon receipt by the Code Authority. 

Any member of the Indu try may file revisions of his net price 

sheets, or price lists and discount sheets, and/ or terms and conditions of sale which shall become effective immediately upon their 

receipt by the Code Authority. No member of the Industry shall 

sell or offer for sale any :r:roduct of the Industry atJrices other than 

those noted in the net pnce sheets, or price lists an discount sheets, 

and/ or on terms and conditions of sale other than the terms and 

conditions of sale last filed by such member with the Code Authority 

in accordance with the proYisions of this Article and in effect at 

the time of such sale. All filed effective/rice lists as provided in this 

Rule shall be open to the inspection o buyers as well a.s sellers as 

they may be concerned. 

ARTICLE VIII-ExPORT TRADE 

SEcTION 1. No provision of this Code relating to prices or terms 

of selling, shipping or marketing, shall apply to export trade or sale 

or shipments for export trade. "Export Trade" shall be defined as 

in the Export Trade Act adopted April 10, 1918. 

ARTICLE IX-ThioDIFICATION 

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 Title I of said Act. 

SECTION 2. Such of the provisions of this Code as are not required 

to be included herein by the Act may t with the approval of the 

Administrator, be modified or eliminated in such manner as may be 

indicated by the needs of the public, by changes in circumstances, 

or by experience. All the provisions of this Code, unless so modjfied 

or eliminated, shall remain in effect until June 16, 1935. 

ARTICLE X-MONOPOLIES, ETC. 

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

prO\Ul 

A.pprov d 

R gi ·try 

4:1 

ARTICLE XI-Pu 

ARTI LE :Y"Il-EFFE TI\'E DATE 

shall be om ffective on the T nth dn.y after its apAdministrator. 

0 
UNIVER S ITY OF FLO RIDA 

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